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~6`t°i~~E~S, the U.S. Department of Energy, through the State of Hawaii Department of
Business, Economic Development, and Tourism, has authorized funding for the F~awai'i County
Department of Pesearch and Development's Geothermal Outreach Program; and
i00~FI~~E~~, the potential for geothermal direct use development in the Kapoho region of Puna
District is significant due to the existence of the Puna Geothermal Venture (PGV) power plant That is
willing to provide hot water for non-electric uses and the prevalence of shallow thermal groundwater
in the area; and
V0i'Ir-BEII~>E,A,S, the lack of awareness, regarding the availability of the resource and its benefits to
agriculture and other business ventures and the perceived high capital costs of wells and other
infrastructure needed to exploit available resources in the region, has hampered the geothermal
direct use development; and
101iI~E~E~S, to encourage private and/or public investment into geothermal direct use,
information on viable commercial geothermal direct use enterprises in the Kapoho region of Puna is
needed; and
18Vi°BEREaAS, this grant is awarded to conduct a feasibility study and prepare a cost benefit
analysis for a direct use geothermal enterprise park in the Kapoho region of Puna, proximate to the
existing PGV power plant and to coordinate community education and outreach programs to gather
input pertinent to the feasibility study, to bring stakeholders together and to disseminate geothermal
direct use information; and
WO~EF2Es4S, Hawaii Revised Statutes, Section 46-7, requires that county departments obtain
the consent of the council to enter into agreements with the federal or state governments respecting
action to be taken pursuant to any of the powers granted by law to furnish, expend, and receive any
funds or other assistance in connection with projects being or to be undertaken pursuant to those
powers.
NOW, THER~FOI~E, IT RESOLVED ~Y TF~E COUNCIL OF fiHE COUNTY OF ~iA?WAI`I,
in accordance with section 46-7, Hawaii Revised Statutes, that the Mayor of the County of Hawaii is
authorized to execute, on behalf of the County, the Contract for Goods and Services with the State of
Hawaii Department of Business, Economic Development, and Tourism, attached hereto and
incorporated herein by reference as Exhibit "1 to enable the County to implement the Geothermal
Outreach program.
BE IT FURTO~ER I:ESOLV~D that the County Clerk of the County of Hawaii shall transmit
copies of this resolution to the Office of the Mayor, the Finance and Research and Development
Departments.
Dated at xilo ,Hawaii, this 3rd day of August , 2005.
INTRODUCED BY:
COUNC L MEMBER, COUNTY OF HAWAII
COUNTY COUNCIL ROLL CALL VOTE
County of Hawaii
Hilo, Hawaii AYLS NOLS A13S LX
ARAKAKI
I hereby certify that the foregoing RESOLUTION was by the RIGA X
vote indicated to the right hereof adopted by the COUNCIL of 1IOFI-MANN X
the County of Hawaii on _~~gust 2005 1IOISCI IUIi X
IKF,UA X
ATTEST
ISBI?Ll. X
.IACOE3SON X
PILAGO X
SAI~ARIK X
9 0 0 0
~ C-356/FC -120
Reference
COUNTY CLERK CHAIRMAN & PRESIDING OFFICER RESOLUTION NO.
STATE OF HAWAII
CONTRACT FOR GOODS AND SERVICES
(IN THE FOLLOWWG CATEGORIES: EXEMPT; SMALL PURCHASE;
SOLE SOURCE; OR EMERGENC7~
This Contract, executed on the respective dates indicated below, is effective as of
.20_,between Department of Business, Economic Development and Tourism
Qnser! name ofttate departmtnl, agenry board or commurranJ
State ofHawaii (hereinafter "STATE"), by its State Director
purer! tide ojperron :rgning jor Stare)
(hereinafter"PROCUREMENTOFFICER'~, whose address is No. 1 Capitol District Building,
250 S. Hotel St., 5th Fl. Honolul~d the County of Hawaii _
Hdwall 96$13 - pnrerl name ojcampany/person)
.(hereinafter "CONTRACTOR', a County i n the State of Hawai i
pnxr! caiporolion, parmoship, join! venture, sole propnetorshrp, or other legal
form ofllr ConfraclorJ
under the laws of the State of .Hawaii whose business address and taxpayer
identification number are as follows:. 25 Aupuni Street, Room 109, Hilo, Hawaii 96720
RECITALS
A. The STATE is in need of the goods or services, or both, (also referred to as
"goods and services', described in this Contract and its attachments. The CONTRACTOR is
agreeable to providing the goods and services.
S. This Contract is for (check orie box):
Rl (1) A procurement expenditure ofpublic funds for goods and services
that is otherwise exempt from public biddirig as set forth in section 103D-102, Hawaii Revised .
Statutes (HRS), and chapter 3-]20, Hawaii Administrative Rules (IiAR); or
or
? (2) A sma]I purchase procurement of goods and services as set forth
in section 103D-305, HRS, and subchapter_8, chapter 3-122, HAR; or
? (3) A sole source procurement of goods and services as set forth in
section 103D-306, HRS, and subchapter 9, chapter 3-122, HAR; or
? (4) A71 emergency procurement of goods and services as set forth in
section ] 03D-307, HRS, and subchapter 10, chapter 3-]22, HAR.
1 AC/SPO FORR1-K(2) (1/01)
EXHIBIT "1"
C. Money is available to fund this Contract pursuant to:
- (1)
(Iden1~Slale sources) _
or(2)U.S. Department of Energy, Energy Efficiency and Renewable Energy Information
(ldent~Federal source) Dissemination
or both, in the following amounts: State $
Federal $ 95,602.00
D: The agency's Chief Procurement Officer is Ruth Yamaguchi
who O has approved this procurement or [~9is not required to approve this procurement.
NOW, THEREFORE, in consideration of the promises contained in this Contract,
the STATE and the CONTRACTOR agree as follows:
I. Scope of Services. The CONTRACTOR shall, in a proper and satisfactory
manner as determined by the STATE, provide all the goods or services set forth in Attachment 1,
which is hereby made a part of this Contract.
2. Compensation. The CONTRACTOR shall be compensated iri a total amount
not to exceed NINETY FIVE THOUSAND SIX HUNDRED TldO AND NO ONE-HUNDREDTHS
DOLLARS 95,602.00 including approved costs incurred and.taxes, according to-the
Compensation and Payment Schedule set forth in Attachment 2, which is hereby made a part of this
Contract.
3. Bonds. The CONTRACTOR ?is required to provide ®is not required to
provide D a performance bond ? a payment bond. ? a performance and payment bond in the
amount of N/A
DOLLARS N/A .
4. Standards of Conduct Declaration. The Standards of Conduct Declaration of
the CONTRACTOR, is attached and is made a part of this Contract.
5. Other Terms and Conditions. The General Conditions and any Special
Provisions are attached hereto and made apart of this Contract. In the event of a conflict between
the General Conditions and the Special Provisions, the Special Provisions shall control.
6. Liquidated Damages. Liquidated damages shall be assessed in the amount
of N/A -DOLLARS N/A )
per day, in accordance with the terms of paragraph 9 of the General Conditions.
Z AG/SPO FORM-K(2) (1/Ol)
7. Notices. Any written notice required to be given by any party to this Contract
shall be (a) delivered personally, or (b) sent by United States fast class mail, postage prepaid- Notice
required to be given to the Procurement Officer or the CONTRACTOR shall be sent to the
respective address as indicated in this Contract. A notice shall be deemed to have been received three
(3) days after mailing or at the time of actual receipt, whichever is earlier. The CONTRACTOR is
responsible for notifying the STATE in writing of any change of address.
IN VIEW OF THE ABOVE, the parties execute this Contract by their signatures, on
the dates below; to be effective as of the date first above written.
STATE
' fsrgnarunJ
Theodore E..Liu
' (Print Name) '
Director
- (Print Titfe)
(Date)
CONTRACTOR
CORPORATE SEAL
(If available)
County of Hawaii
' (Inrert name oJCantroatorf
. (Signatwe)
(Print Name) '
(Print Tille)
(Dare)
APPROVED AS TO FORM:
Deputy Attorney General
'Evidencc of authority of the CONTRACTOR'S representative to sign this Contract for the CONTRACTOR must be attached.
3 AG/SPO FORM-K(2) (1lOl)
CONTRACTOR'S ACKNOWLEDGMENT
STATE OF )
: SS.
COUNTY OF )
On this day of , 20 , before me appeared
and to
me known, to be the person(s) described in and, who, being by me duly sworn, did say that
he/she/they is/aze and of
.the CONTRACTOR named in the foregoing
instrument, and that helshe/they is/aze authorized to sign said instrument on behalf of the
CONTRACTOR, and acknowledges that he/she/they executed said instrument as the free act and
deed of the CONTRACTOR.
- (SignaivnJ
(Print Name)
(Notary Seal)
Notary Public, State of
My commission expires:
4 AC/SPO FORM-K(2) (I/O] )
CONTRACTOR'S
STANDARDS OF CONDUCT DECLARATION
For the purposes of this declaration:
"Agency" means and includes the State, the legislature and its committees, all
executive departments, boards, commissions, committees, bureaus, offices; and
all independent commissions and other establishments of the state government but
excluding the courts.
"Controlling interest" means an interest in a business or other undertaking which
is sufficient in fact to control, whether the interest is greater or less than fifty per .
cent (50%).
"Employee" means any nominated, appointed, or elected officer or employee of
the State, including members of boazds, commissions, and committeeg, and
employees under contract to the State or of the constitutional convention, btit
excluding legislators, delegates to the constitutional convention, justices; and
judges. (Section 84-3, HRS).
On behalf of the County of Hawaii CONTRACTOR, the undersigned does
declaze as follows:
1. CONTRACTOR ? is~ ? is not a,legislator or an employee ora business in which a
legislator or an employee has a controlling interest. (Section 84-15(a), HRS).
2. CONTRACTOR has not been represented or assisted personally in the matter by an.
individual who has been an employee of the agency awazding this Contract within the
preceding two years and who participated while so employed in the mattes with which the
Contract is directly concerned. .(Section 84-15(b), HRS).
3. CONTRACTOR has not been assisted or represented by a legislator or employee for a
fee or other compensation to obtain this Contract and will not be assisted or represented
by a legislator or employee for a fee or other compensation in the performance of this
.Contract, if the legislator or employee had been involved in the development or awazd of
the Contract. (Section 84-14 (d), HRS).
4. CON"TRACTOR has not been represented on matters related to this Contract, for. a fee or
other consideration by an individual who, within the past twelve (12) months, has been an
agency employee, or in the case of the Legislature, a legislator, and participated while an
Reminder to aeencV: If the "is" block is checked and if the Contract involves goods or services of a value in
excess of $10,000, [he Contract must be awarded by competitive sealed bidding under section ] 03D-302, HRS, or a
competitive sealed. proposal under section 103D-303, HRS. Otherwise, the agency may not award the Conhact
unless it posts a notice of its intent to award it and files a copy of [he notice with the State Ethics Commission.
(Section 84-]5(a), HRS).
Revised 1/04
employee or legislator on matters related to this Contract. (Sections 84-18(b) and (c)
HRS).
' CONTRACTOR understands that the Contract to which this document is attached is voidable
on behalf of the STATE if this Contract was entered into in violation of any provision of
chapter 84, Hawaii Revised Statutes, commonly referred to. as the Code of Ethics, including the
provisions which are the source of the declarations above.. Additionally, any fee, compensation,
aft, or profit received by any person as a result of a violation "of the-Code of Ethics maybe
recovered by the STATE.
.DATED: Honolulu, Hawaii, _
CONTRACTOR
By
" . ~ (signature)
Print Name
Print Title
Name of Contractor ~ the County bf Hatvai i
Date
~iooi_i 2 Revised 1/04
Attachment 1
SCOPE OF SERVICES
CONTRACTOR shall provide, in a satisfactory and proper manner as determined by the STATE, the
following services:
I. Task 1: Conduct Feasibility Study
A. CONTRACTOR shall employ the services of a qualified consultant to conduct a feasibility
study of direct use enterprises appropriate to the community surrounding the Puna
Geothermal Venture (PGV) power plant.
B. The objectives of the feasibility study shall be to:
1) Identify geothermal direct use (GDU) enterprises that aze likely to be commercially
viable in Kapoho by activities such as but not limited to conferring with Big Island
businesses and residents, nursery operators, commercial fishers, aquaculture enterprises,
fruit and produce farmers, agricultural commodity groups, University of Hawaii
extension agents, spa operators, and visitor industry representatives.
2) Identify direct use enterprises that are likely to be accepted by the Kapoho community
by activities such as but not limited to participating in Hawaii County's Geothermal
Direct Use Working Group meetings and public information sessions.
3) Identify ownership and zoning of lands within and proximate to the Kapoho
Geothermal Subzone that could be used for GDU businesses.
4) Using existing data, such as, but not limited to that from geophysical and geochemical
surveys and County Depaztment of Water Supply exploration, identify thermal
groundwater resources in Kapoho outside of PGV's lease that could be utilized for
GDU, along with critical characteristics such as but not limited to depth, temperature
and salinity.
5) Estimate capital and other costs, including but not limited to those for heat exchangers,
pumps, and piping, as well as rents and royalties, associated with potential use of heat
from thermal fluids generated by PGV for enterprises such as those identified in
objectives B1 and B2, above. Identify conditions and cost considerations of concern to
PGV.
6) Estimate capital and other costs, including but not limited to those for wells, pumps and
piping, as well as rents and royalties, for developing thermal groundwater for GDU
from at least one source other than PGV for enterprises such as those identified in
objectives B1 and B2, above.
Attachment 1
Page 2
7) Address at least one meeting of the County of Hawaii's Geothermal Direct Use
Working Group or the general public to provide a summary of progress on objectives
B ] through B6, above, including major findings and potential barriers to
implementation. Solicit and record comments that indicate the community's response,
including acceptance of possible projects.
8) Utilizing the information on potential economic viability and community acceptance
obtained from objectives B 1 through B7, above, develop a list of GDU enterprises that
appear to be the most promising. This list should include no less than four enterprises,
unless fewer than four are selected by mutual agreement between STATE and
CONTRACTOR.
9) Estimate the capital and operational costs of the enterprises identified in objective B8,
above. Establish the financial viability of the enterprises based on current market
conditions. Rank the enterprises on this basis.
10) Calculate a viable unit cost for heat and the revenue expected, if any, from the sale of
waste heat generated by F'GV.
1 Identify potential location(s) for a GDU Enterprise Pazk. Estimate the capital costs to
establish such a pazk; recommend management scenarios for such a pazk, such as but
not limited to incubator-type support, cooperative use of facilities, and appropriate roles
for the public sector; indicate costs and benefits to tenants for colocating in an
enterprise pazk. Discuss both positive and negative impacts of such a pazk on the local
community, such as but not limited to traffic, employment, and noise.
12) Reseazch the legal bases for accessing the County of Hawaii's Geothermal Asset and
Geothermal Royalty funds, and identify what regulatory changes would be required to
make these funds a viable source of capital for GDU.
] 3) Identify which existing County geothermal regulations affect the development of GDU
and what changes, if any, could be made to remove barriers or provide incentives for
GDU.
14) Identify existing financial assistance programs to which potential geothermal direct use
entrepreneurs could apply for support, such as but not limited to government loan and
grant programs.
15) Develop a plan to promote the economic benefits of GDU, to include but not be limited
to job creation, tax flows associated with construction, operation and maintenance,
impact on the State's balance of trade, and labor rates to private industry, the
community, the County, and the State and Federal governments.
Attachment 1
Page 3
impact on the State's balance of trade, and labor rates to private industry, the
community, the County, and the State and Federal governments.
II. Task 2: Outreach and Education Program
A. CONTRACTOR shall establish a Working Group having a broad representation of
stakeholders that shall meet approximately once per quarter to discuss issues relating to
geothermal direct use and the feasibility study.
B. CONTRACTOR shall convene at least two public, non-technical educational workshops to
provide information on geothermal direct use and the feasibility study to the community at
large.
C. CONTRACTOR shall secure the participation of Oregon Institute of Technology Geo-Heat
Center personnel for at least one public information or Working Group meeting, to provide
information including but not limited to examples of the direct utilization of geothermal
resources nationally and internationally.
D. Records of the Working Group and public meetings shall be made available to the STATE
and to the general public.
III. Reports
The following reports shall be submitted to the STA"fE for STATE approval:
A. Financial Status Reports shall be submitted by the CONTRACTOR for approval by the
STATE on a quarterly basis for the duration of the Contract. Reporting periods end on
Mazch 31, June 30, September 30, and December 31. Reports shall be in accordance with
Exhibit A, "Invoice and Financial Status Report" attached hereto and incorporated herein.
Reports are to be received by the STATE no later than fourteen calendaz days following the
close of each period.
Attachment 1
Page 4
B. Project Progress Reports shall be submitted by the CONTRACTOR for approval by the
STATE on a quazterly basis for the duration of the Contract. Reporting periods end on
March 31, June 30 September 30, and December 31. Reports are to be received by the
STATE no later than fourteen calendaz days following the close of each period. The reports
shall include, but aze not limited to, the following information:
1) A compazison of the actual accomplishments with the goals and objectives established
for the period and reasons why the established goals were not met, if applicable.
2) Results of work to date, including but not limited to records of any Working Group
meetings. This section should not include any proprietary or classified data or other
information not subject to public release.
3) Actual or anticipated problems or delays and actions taken or planned to resolve them.
4) Any absence or changes of key personnel or changes in consortium/teaming
arrangements.
5) A description of any technology transfer activities accomplished in this reporting
period, such as but not limited to: joumal publications, conference papers, newspaper
articles, web sites reflecting project results, and other public releases of the results.
Copies of the releases must be attached.
6) A "Cost Shaze Status Report" attached hereto as Exhibit B and incorporated herein.
7) A projected work plan, with goals and objectives, for the next reporting period.
C. A Final Project Report shall be submitted to the STATE for approval prior to the termination
of this Contract. The report shall include, but is not limited to, the following information:
1) A comparison of the actual accomplishments with the tasks listed in paragraphs I and II,
above, and reasons for deviations, if any.
2) Results of work. This section should not include any proprietary or classified data or
other information not subject to public release.
3) A listing of any technology transfer activities accomplished during the project, such as
but not limited to: journal publications, conference papers, newspaper articles, web
sites reflecting project results, and other public releases of the results. Copies of the
documents and releases must be attached, if not previously attached in Progress
Reports.
Attachment 1
Page 5
4) Recommendations for future activities relating to the project's objectives.
5) A "Cost Shaze Status Report" attached hereto as Exhibit B and incorporated herein.
Total reported cost share for this project shall be no less than THIRTY FIVE
THOUSAND SEVEN HUNDRED SEVENTY FIVE AND NO/100 DOLLARS
($35,775.00).
D. A Final Financial Status Report shall be submitted to the STATE within thirty days of the
termination of this Contract. The financial status report shall include information on costs
incurred under this Contract and shall be in accordance with Exhibit A, "Invoice and
Financial Status Report" attached hereto and incorporated herein.
E. Drafr and final reports on the feasibility study shall be submitted to the STATE for approval
and comment. The drafr and final feasibility study reports shall contain but not be limited to
the results of the tasks listed in Pazagraph I B, above. The final report shall be in both
hardcopy and electronic formats. CONTRACTOR and the STATE shall jointly release the
final report to the public.