HomeMy WebLinkAboutREP FC 207 01/04/2006 2004-2006 REPORT OF THE
COMMITTEE ON FINANCE
DATE: January 4, 2006 Re: Comm. No. 597/Bill No. 190
PLACE: Council Chambers
TIME: 10:03 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance. to which was referred Bill No. 190, reports as follows:
Bill No. 190, transmitted by Director of Finance William Takaba, via Communication No. 597,
dated December 9, 2005, amends Ordinance No. OS-87, as amended, the Capital Budget, ending
June 30, 2006, by adding the following project:
ENVIRONMENTAL MANAGEMEN"h:
East Hawaii Regional Sort Station 110.699.5691.49 [$2,200,000] $6,100,000
Funds for this appropriation increase shall be provided from:
General Obligation Bonds, Capital Projects Fund- $3,900,000
Fund Balance and/or other Sources
After the original appropriation of $2,200,000, the bids have been received, with the lowest base
bid price received being $9,338,285. After adding in related expenses for construction
management and field change orders, the expected total project cost will be $10,088,285.
Previous funding appropriated was $6,200,000, which leaves a shortfall of $3,888,285. With the
additional funding requested_ the County can proceed to award the contract for the reload
building, the associated roads and utilities and the scale house and scales, which correspond to
the base bid for the East Hawaii Regional Sort Station Complex.
Pursuant to Section 10-6(d), Hawai `i County Charter, the Council may amend the Capital Budget
for that year with atwo-thirds vote.
Communication No. 597.1 from Mayor Harry Kim, dated January 4, 2006, provided comments
on Bill No. 190. He stated the additional funding is necessary to allow the County to proceed to
award a contract to construct the urgently-needed solid waste Reload Facility at the proposed
Sort Station Complex. As bids are valid for a limited time, the lowest bidder has agreed to an
extension until March 7.2006 to award the project.
Also, Communication 597.2. from Director of Department of Public Works Bruce McClure,
dated January 3, 2006, indicated the lowest bidder was lsemoto Contracting Co., Ltd. Their bid
of $9,338,285 was the lowest cost for the basic bid elements. In addition, their price of
$8,838,048 represents the basic bid minus all eight of the deductive alternates.
FC REPOR"1' NO. 207
Leslie Isemoto, President of Isemoto Contracting Co., Ltd. was present to explain that the
Island's construction boom, compounded by hurricane disasters of the Gulf States, has created
material shortage and price increase throughout the United States and if the County does not sign
a contract by March 7, the project cost could increase 12 to 20 percent.
Krystal Li, of URS Corporation, was present to explain the design reloading facility. She stated
that after traffic and waste stream studies at all the solid waste facilities, the design and scale of
the facility was fit to the County's needs.
Members of Your Committee stated that when they approved an additional $2.2 million for the
facility on September 21, 2005, they requested that the Administration take another look at the
design of the facility. It was felt by some that the cost of construction would be less if the
facility was built close to the front of the property nearer to the road, with the public recyling
area placed before the scales and the County and commercial area towards the back.
Council Member .lames Arakaki felt that the $6.2 million already appropriated for the project is
adequate and the Administration could stay within that amount. He feels the project could be
scaled down to fit within that budget.
Solid Waste Division Chief Mike Dworsky stressed that without moving forward on the reload
facility in place, there may not be an extension granted by the Department of Health to keep the
Hilo Landfill open, and the County will be forced to the controversial option of trucking East
Hawai`i~s roughly 235 tons of waste generated daily to the West Hawaii landfill at Pu'uanahulu.
Council Vice Chair Virginia Isbell said that with or without the reload facility there will be
hauling. She told Mr. Dworsky not to close the door on other options, as alternatives are
available.
For informational purposes, Council Chair Stacy Higa, Council Vice Chair Virginia Isbell,
Council Member Fred Holschuh, M.D., and Council Member Donald Ikeda voted kanalua twice.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 190 and
recommends it pass first reading.
smc
Hues rvues n&e ex Respectfully submitted,
AF.AKAKI X_
HICA x ~ COMMITTEE ON FINANCE
HOF'FMANN X ~ C`i~
HOLSCHUH _ X ~
IKEDA X
ISBELI. X -
.IACOesoN _ _ X _ VIRGINIA ISBELL, CHAIR
FILACO _ _ X FC REPORT NO. 207
SAFABIK X ADOPTED: .JAN