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Form #: B-52 <br /> 7/18/91 <br /> DEPARTMENT OF FINANCE <br /> REQUEST FOR COUNCIL ACTION <br /> DEPARTMENT: Environmental Management DATE: 11/13/2019 <br /> STAFF CONTACT: Greg Goodale PHONE: 961-8270 <br /> A. REQUEST: <br /> Resolution authorizing the Mayor to enter into a multi-year lease agreement for real property for the County <br /> of Hawaii Department of Environmental Management. <br /> B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED <br /> The County of Hawaii - Solid Waste Management Plan includes the diversion of greenwaste from the waste <br /> stream being landfilled in Hawaii County. In 2016 the county entered into a 10 year contract with its vendor, <br /> Hawaiian Earth Recycling, LLC, with two additional five year option periods. In 2018 the county renegotiated <br /> the contract terms. In 2018, the County did a site selection study to determine the best location for the <br /> Compost Facility. The top ranked site at the W.H. Shipman Industrial Park was the subject of an <br /> Environmental Assessment. <br /> The Department of Environmental Management - Solid Waste Division has determined that this site meets <br /> all contract needs, Environmental Assessments, Community concerns, and planning/permitting <br /> requirements. We are requesting a 7 year lease with two additional five year options for a portion of TMK (3) <br /> 1-6-003:090 located within the W.N. Shipman Industrial Park in the Puna District. <br /> Without this requested multi-year lease agreement, the County of Hawaii will not be able to meet its <br /> negotiated contract terms with its vendor, Hawaiian Earth Recycling, LLC, to provide a comprehensive <br /> organic waste diversion program. A multi-year lease agreement is required before construction can <br /> commence for the new site. On July 1, 2020, the contractor will begin charging a higher per ton rate for all <br /> materials, a rate that was negotiated for the production of mulch and compost, making finalization of the <br /> requested lease a fiscal imperative as the compost materials will only be able to be processed at the new <br /> facility. <br /> .a <br /> f s er P <br /> SIGNED: f DATE: 11/13/2019 <br /> Department Head <br />