HomeMy WebLinkAboutREP FC 117 09/20/2011 2010-2012 REPORT OF THE
COMMITTEE ON FINANCE
DATE: September 20, 2011 Re: Comm. No. 353/Res. No. 147-11
PLACE: Council Chambers
Kona, Hawai`i
TIME: 11:07 a.m.
Council Chair and Members
Hawai`i County Council
Hilo, Hawai`i 96720
Your Committee on Finance, to which was referred Resolution No. 147-11, reports as follows:
Resolution No. 147-11, transmitted by Finance Director Nancy Crawford via Communication
No. 353, dated September 7, 2011, authorizes the payment of funds of a later fiscal year and of
more than one fiscal year for a multi-year lease for two (2) fire apparatus (fire trucks) for the
Hawaii Fire Department. The County of Hawai`i wishes to enter into a multi-year lease
agreement for five (5) years, for two (2) fire apparatus (fire trucks) at a total cost not to exceed
$23,500 per month or $282,000 annually.
Deputy Director of Finance Deanna Sako and the Fire Department Accountant Robert Belcher
appeared before Your Committee.
Several Members of Your Committee expressed their support for leasing the two (2) fire
apparatus; however, some members are concerned that the "not to exceed amount" stated in the
resolution is too high and therefore inappropriate. Ms. Ford spoke against the resolution, stating
that it is premature. She feels because the Hawaii Fire Department has not provided any
specifications for the Request for Proposal for these apparatus, they are not clear what they are
asking for nor on how much money they will need. She also requested Ms. Sako to clarify if
purchasing fire apparatus is an allowed use for fair share funds.
Members expressed the concern that if the "not to exceed amount" is at a higher level, then
vendors will be encouraged to bid higher. Some members mentioned that perhaps the lease cost
should be left out of the resolution as in previous practice. Ms. Sako informed Your Committee
that the amount stated in the resolution is based on the best information possible, working with
the Fire Department. Mr. Belcher confirmed this, and cited purchase prices for apparatus
obtained in previous years.
FC Report No. 117
FC-117 Page 2 September 20, 2011
Chairman Yagong suggested amending this resolution to include a lease plan that would price
the apparatus at $800,000 each. He also suggested that in order to save the tax payers money,
perhaps the Council can find the money to purchase the apparatus rather than leasing it.
Mr. Yagong mentioned that he will put forth an amendment for consideration at full Council,
pending information received from administration.
For information purposes, Council Member Blas voted "kanalua" twice.
Your Committee on Finance is in accord with the purpose and intent of Resolution No. 147-11,
and recommends its adoption.
be
AYES NOES A&E EX Respectfully submitted,
BLAS X
FORD X COMMITTEE ON FINANCE
HOFFMANN X
IKEDA X
ONISHI X 9711--/-
PILAGO X
SMART X BRENDA FORD, CHAIR
YAGONG X FC REPORT NO. 117
YOSHIMOTO X ADOPTED: OCT 0 5 2011