HomeMy WebLinkAboutREP FC 447 09/24/1991 REPORT OF THE
COMMITTEE ON FINANCE
Date: September 24 , 1991 Re: Comm. 2874
Place: Councilroom
Time: 10 : 00 a.m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution
No . 376-91, reports as follows :
The purpose of Resolution No. 376-91 is to authorize the County to
enter into a three-year price-term agreement for body removal
services with Borthwick/Hawaii Funeral Home beginning October 1,
1991 and ending September 30, 1994 . Further, to ensure sufficient
funds be budgeted in future fiscal years to cover the anticipated
obligation of the County under the price-term agreement .
Communication 2874 , dated September 17, 1991 from the Director of
Finance, transmits said Resolution No . 376, Departmental Request for
Council Action, Proposal and Specifications #1372, Proposal Results
#1372 and copy of draft price agreement.
Your Committee reviewed the documentation provided and noted
previous services were bid annually with little or no competition.
Last year, no bids at all were received, and the Police Department
provided services without a contract . Private operators indicated
they would consider providing the service if the County would waive
bid and performance bond requirements and offer a three-year
agreement to assure a longer period to justify business start-up
costs .
Your Committee was told the Police, utilizing their pick-up trucks,
pick up bodies of victims from accidents or other non-emergency
calls and transport the bodies to the nearest hospital . There, a
doctor issues a death certificate and the body is transported to
Hilo Hospital for an autopsy.
The purchasing agent informed members that the County does not
normally enter into multi-year price-term agreements, nor does the
County usually waive bonding provisions . Committee members
expressed concern that waiving surety and other performance bonds
was setting a bad precedent . Without requiring these guarantees for
performance, the County would need resort to litigation to recover
expenses to the County should a contractor fail to perform
provisions of the agreement .
FC REPORT NO. 447
ADOPTED: OCT 2 1991
Mr
FC-447 Page 2 September 24 , 1991
Also transmitted for Committee review was a legal opinion from the
Corporation Counsel dated August 5, 1991 . The opinion, in part,
stated the County may waive the filing of a performance bond in
awarding a price agreement for the subject services . It also states
the County can enter into a three-year price agreement . Supporting
discussion therein states, "If all of the money necessary to pay the
contractor for services during the entire duration of the contract
is appropriated in the fiscal year of the contract, then a contract
running longer than one year could be executed as any other
contract . " The Council Chairman, although not a member of the
Committee, expressed concern with this statement and requested a
formal legal opinion regarding this statement and the necessity of
Council ' s approval for multi-year contracts .
Your Committee recommended and later decided to amend Resolution
No . 376 to include a statement which insures a copy of the final
draft agreement is attached to and becomes part of the Resolution.
Your Committee on Finance concurs with the intent of Resolution
No . 376-91, Draft 2, and recommends its adoption.
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HELENE H. HALE, CHAIRWOMAN A
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ROBE•T H. UAKANE, VICE CHR. BRIAN J. P LIMA, MBER�� �c, � i►
TAKASHI DOMI GO, ME ER MERL K. LAI , MEMB •
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HARRY S. DDLE, MEMBER SPENCER K. SCHUTTE, MEMBER
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