HomeMy WebLinkAboutCOM 1026.000 1996-1998
OJ~11 OF. M,W1
Stephen K. Yamashiro U' \.Wus Harry A. Takahashi
Mayor Director
.pr-o,~ y ao,,.'~ S. K. Schutte
~rEp'p M~~ Deputy
Q tountp of IaWaii
DEPARTMENT OF FINANCE
25 Aupum Street, Room 118 • Hilo, Hawaii 967204252
(808)961-8234 • Fax(808)961-8248
October 8, 1998
Honorable James Arakaki, Chairperson and
Members of the County Council
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
Re: Resolution Authorizing the County to Enter into a Multi-Year Contract
In 1997, the County of Hawaii had a contract to retrofit the Hawaii County
Building. The annual electricity usage was reduced by 33%, saving the County
$67,406 in electricity costs in the first year of the post-retrofit operations.
The County now desires to retrofit the remaining County-owned buildings
operated by the Police, Fire, Parks & Recreation, Finance, and Public Works
Departments.
The Department of Research & Development desires to have this resolution go
directly to the Council meeting scheduled on October 21, 1998.
If there are any questions, please do not hesitate to call the Department of
7searc & evelopment. I -A
Cc c 1
ry A. Takahashi
Director of Finance
CAPPR ED
Stephen K. Yamashiro
Mayor
Enc.
R, .
009am. No. 1026
File No. CJ I N
Ref. Tot CVt/A/GtL
Ref Date OCT 12 1990
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to 07 98 "ED 11:52 FAX 808 520 $ean . R&D - HILO f~uu1
10/07/98 %ED 11:55 FAX 808 935 1205 Corli Res & Dev Diane 9111tlquir Lol 0-
Form
1/18/91
DEPARTMENT QF FINANCE
REQUEST FOR COUNCIL ACTION
DEPARTMENT: Research and Development DATE: October 7, 1998
STAFF CONTACT= Raymond Carr PRONE 961-8497
A. REQUEST,
Submit a Resolution (draft is attached) permitting Mayor to enter
into a multi-year performance contract.
B. BACKGRQUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NXXDE,D)=
In early 1997, an energy efficiency retrofit was carried out for the Hawaii County
Building in Hilo by means of a performance contract. Electricity cost savings of 567,406
were realized in the first post-retrofit year as a result of these measures. These savings,
together with maintenance cost savings, are adequate to fund the payments on the
municipal lease ($480,940 purchase price at start of lease) and other costs associated with
the retrofit. The contract term is ten years after which all equipment is owned by the
County free and clear and all subsequent energy cost savings accrue to the County.
In view of the favorable experience with the Hawaii County Building project - the
county did not have to provide CIP funds and project costs were funded through proven
cost savings - it is intended to use a performance contract with a ten-year term to carry
out efficiency retrofits to the remaining inventory of County owned buildings and
facilities operated by Police, Fire, Parks & Recreation, Real Property and Public Works
departments.
It is requested that County Council authorize the Mayor to enter into a performance
contract for this project. It should be noted that, at a later date, County Council
authorization will likely be requested to permit the Mayor to enter into a ten-year
municipal lease agreement to fund this project. At that time, detailed engineering and
financial terms of this project will be available to County Council.
SIGNED. WIw J- vlt-9ud: _ DATE: 107 98
Dep rtmant Head
4oJHtr of Hew,'
AARON S.Y. CHUNG Phone: (808) 961-8396
Cauncilmember FAX: (808) 969-3291
~~f pjXLJ~
COUNTY COUNCIL
County of Hawaii
Hawaii County BuildinE~
25 Aupuni Street
Hilo, Hawaii 96720
October 12, 1998
James Y. Arakaki, Chair
Hawai'i County Council
25 Aupuni Street
Hilo, Hawaii 96720
RE: Attached Resolution
Pursuant to Section I (e) of Rule 4 of the Rules of Procedure of the Council of the County
of Hawai'i, this written approval is submitted in regards to Resolution No. 339-98,
Authorizing the mayor to enter into a multi-year agreement for an energy retrofit to
County of Hawaii buildings, waiving said referral from the Committee on Finance in
order that appropriate action be taken by the Council.
In reviewing the contents of the referral, it is deemed advisable that this waiver be
granted.
Aaron S.Y. Chung, Chai
Committee on Finance
Approved:
Ja s Y. Arakaki, Chair
L awai'i County Council
ASYCjmn