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Home My WebLink AboutCOM 0003.008 2012-2014 `r #,. ; � "' " William P.Kenoi :4 Dora Beck,P.E. ;:. Mayor s Acting Director 0% _ Walter K.M.Lau N�'M Managing Director County of Hawai`i DEPARTMENT OF ENVIRONMENTAL MANAGEMENT 25 Aupuni Street • Hilo,Hawaii 96720 (808)961-8083 • Fax(808)961-8086 http://co.hawaii.hi.us/directory/dir envmng.htm March 11, 2013 J Yoshimoto, Chair And Members of the Hawai`i County Council 25 Aupuni Street Hilo, Hawai`i 96720 Subject: March 12,2013 Finance Committee Agenda COMM. 3.6: Report of Change Orders Authorized: January 1 - 15,2013 Contract#C.001281 -Additional 180 day extension Contract#C.001310 -Additional Funding and 180 day time extension Dear Chair Yoshimoto and Council Members, The Department of Environmental Management (DEM)has prepared the following statement prior to discussion of Communication 3.6 scheduled at the Finance Committee on March 12, 2013. The intent is to provide brief background information to assist in the understanding of two DEM contracts reported on Change Orders Authorized for the Period of 1/1/13 — 1/15/13. Relevant Facts: • Most of the recycling service contracts in DEM are either Invitation for Bid (IFB)or Request for Proposal (RFP)whose origination strictly adheres to State Procurement Rules. Following execution of the original contract, additional funds or additional time are often required in order for the County to continue the service as provided for by that contract. Sometimes extensions beyond the provisions of the original contract are necessary and are usually pending development of a replacement IFB or RFP. • These additional funds and time extensions are executed as supplementals to the original contract. The additional fund amount is based on the quantity of service expected or desired by the County and it is dependent on available funds in the currently approved fiscal year budget. • There may be more than one fund certification for a contract in a given fiscal year depending on the amount of service required by the County. • These contracts are "price-term" agreements where the County pays based on need for the product or service and at an originally agreed upon price established during contract origination. Though they are price term agreements, funds are periodically certified for these contracts as a means to manage and control costs. Comm. No., ,'. County of Hawai`i is an Equal Opportunity Provider and Employer. Ref.To: P 1'L Ref. Date MAR 1 2 ?nil • Supplementals for the two (2)contracts were either for fund certifications (adding funds or exercising option years) or time extensions and fund certifications; all for the purpose of continuing to provide a specific service to the public. Contrary to implications of the recent newspaper headline,these were not"cost overruns" for which no additional services were received. Contracts Information: 1. Contract#C.001281 (FY07-08: 2-year Contract with two 12-month Option Years) • Service Provided: Collect& Haul recyclables (non-H15 glass and mixed recyclables including paper, plastic and metals) received by residential public at 19 County Transfer Stations and commercial public at the Sort Station. • Diverts recyclables from the landfills. • History of Supplementals: - Supp. 1: FY07-08 = Fund Certification(Add to original contract: $300,000) - Supp. 2: FY08-09= Fund Certification for Year 2 ($858,750) - Supp. 3: FY09-10= 1st Option Year($921,250) - Supp. 4: FY10-11 =2nd Option Year($785,000) - Supp. 5: FY11-12 (7/1/11 — 12/31/11)= 180-day Time Extension+ Fund Certification($460,800) - Supp. 6: FY11-12 (1/1/12—6/30/12) = 180-day Time Extension+Fund Certification($397,200) - Supp. 7: FY12-13 (7/1/12— 12/31/12)= 180-day Time Extension+Fund Certification($451,200) - Supp. 8: FY 12-13 (1/1/13 —6/30/13)= 180-day Time Extension+Fund Certification ($533,000) 2. Contract#C.001310 (1-year Contract with three 12-month Option Years) • Landfill Diversion Incentive Program (not a service providing contract). • Incentivizes private businesses to recycle which helps divert recyclables from the landfills. • Contracts are between the County and eligible participants who receive disbursements after showing proper documentation for recycling. • History of Supplementals: - Supp. 1: FY08-09= 1st Option Year($323,600) - Supp. 2: FY08-09 =Fund Certification (Add to 1st Option Year $630,000) - Supp. 3: FY09-10=2nd Option Year($749,400) - Supp. 4: FY10-11 =3rd Option Year($296,037)) - Supp. 5: FY11-12 (7/1/11 — 12/31/11)= 180-day Time Extension - Supp. 6: FY11-12 (1/1/12—6/30/12)= 180-day Time Extension+Fund Certification ($177,000) County of Hawai'i is an Equal Opportunity Provider and Employer. - Supp. 7: FY12-13 (7/1/12— 12/31/12) = 180-day Time Extension+Fund Certification($200,000) Best Regards and Aloha, Dora Beck, P.E. ACTING DIRECTOR cc: Mayor Billy Kenoi Managing Director Wally Lau Deputy Managing Director Randy Kurohara Nancy Crawford, Finance Director Greg Goodale, SWD Chief Linda Peters, Recycling Coordinator County of Hawai'i is an Equal Opportunity Provider and Employer.