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REPORT OF THE <br /> COMMITTEE ON FINANCE <br /> DATE: December 3, 2019 Re: Comm. No. 634/Res. No. 423-19 <br /> PLACE: Council Chambers <br /> Hilo, Hawaii <br /> TIME: 5:30 p.m. <br /> Council Chair and Members <br /> Hawaii County Council <br /> Hilo, Hawaii 96720 <br /> Your Committee on Finance, to which was referred Resolution No. 423-19, reports as follows: <br /> Resolution No. 423-19, transmitted by Finance Director Deanna Sako, via Communication No. 634 <br /> dated November 14, 2019, authorizes the payment of funds of a later fiscal year and of more than one <br /> fiscal year for multi-year lease of real property for the County of Hawaii Department of Environmental <br /> Management. <br /> This resolution authorizes the Mayor to enter into a seven-year lease agreement with two additional <br /> five-year options with W. H. Shipman, Limited, for property in the W. H. Shipman Industrial Park to <br /> construct a compost facility which would provide for the diversion of organic material from the <br /> County's waste stream. <br /> Department of Environmental Management (DEM) Solid Waste Division Chief Greg Goodale gave a <br /> brief explanation as to the area where the compost facility will be constructed at the Shipman Business <br /> Park. He stated an area of about 20 acres has been identified and an Environmental Assessment has <br /> been done with a finding of no significant impact. DEM is now in the design process. The County has <br /> been working with W. H. Shipman, Ltd., to allow DEM the ability to move forward with a long-term <br /> lease. <br /> In response to Council Member Susan Lee Loy's question regarding DEM's timeline, Chief Goodale <br /> stated that DEM would move forward with the lease, and then the design phase. He indicated that DEM <br /> is working with the contractor and its designer and are on schedule for completion in July of 2020. <br /> Ms. Lee Loy asked Finance Director Deanna Sako about multi-year contracts over different fiscal years <br /> with other departments. Ms. Sako stated the reason for this resolution is to make sure they budget <br /> accordingly. She noted that one of the options will be to purchase the land; however, it is not an option <br /> at this time because the property needs to be subdivided, as the 20 acres is part of the approximately <br /> 100 acres. DEM already has a multi-year contract for the composting facility; they just need a site that <br /> this resolution is authorizing. <br /> Council Member Herbert M. "Tim" Richards, III stated his concerns regarding issues with the <br /> neighboring landowners once the composting goes forward. Mr. Goodale said DEM identified locations <br /> that would be acceptable for this type of facility, and DEM's primary concern was looking at the <br /> FC Report No. 92 <br />