HomeMy WebLinkAboutREP FC 416 07/30/1991 _ REPORT OF THE
COMMITTEE ON FINANCE
Date: July 30, 1991 Re: 'Comm. 2692
Place: Councilroom
Time: 10 : 00 a.m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill 463, reports
as follows :
Bill 463 proposes to amend Ordinance 91-51, the Capital Improvement
Budget for Fiscal Year 1991-92, by adding the following project:
DEPARTMENT OF PUBLIC WORKS
West Hawaii Landfill Const . & Expansion
(110-699-5697.28-115) $3, 800,000
Communication No. 2692, dated July 15, 1991, from the Finance
Director, transmits three (3) Bills (Bills 462, 463 & 464) for
Council consideration.
According to the Finance Director, as of June 30, 1991,
appropriations for the following two (2) projects lapsed prior to
completion:
Project Ord. No. Apprn. Allotments Apprn. Lapsed
Old Kona Airport Gym 88-189 3, 500,000 202, 810 3,297, 190
West Hawaii Landfill 88-81 4, 100, 000 300, 000 3, 800, 000
The subject Bill 463 proposes reappropriating the lapsed portion of
funds for the West Hawaii Landfill, while the accompanying Bill 464
reappropriates funds for the Old Kona Airport Gym.
According to the Finance Director, funds for both projects shall be
provided from the unallotted proceeds of the General Obligation
Bonds 1990 Series A. In this regard, also transmitted for
consideration is Bill 462, which proposes amending Ordinance 90-56
relating to the issuance of general obligation bonds to reflect the
reappropriation of funds for the West Hawaii Landfill project.
FC REPORT No. 416
ADOPTED: AUG 7 1991
FC-416 Page 2 July 30, 1991
Your Committee on Finance was informed by the Director of Parks and
Recreation all bids for the Old Kona Airport Gym were over the
amount specified in the Request For Proposal . The director
explained presently the County is negotiating with the low bidder to
reduce the scope of the project and reduce cost by approximately
$500, 000.
The director stated the change in roofing materials from slate to
monier material accounts for the majority of the reduction in costs.
Although your Committee supports efforts to proceed with the project
as soon as possible, your Committee questioned the legality of
negotiating only with the lower bidder rather than all bidders, as
all bidders initially over-bid the project, and by changing the roof
materials, the County is essentially changing the bid specifications .
Your Committee requested the Corporation Counsel render a written
opinion on the legality of negotiating with the lower bidder only
and submit the opinion by the end of the day or as soon as possible,
but not later than the Council meeting scheduled for August 7, 1991.
Section 10-10, Hawaii County Charter, states, "General
appropriations, except an appropriation for a capital expenditure,
shall lapse at the close of the fiscal year to the extent that the
same has not been expended or encumbered. An appropriation for a
capital expenditure that is not encumbered shall lapse at the end of
the two fiscal years following the fiscal year that the
appropriation was made. "
Your Committee on Finance is in accord with the intent and purpose
of Bill 463 and recommends that it pass first reading, with the
condition that Corporation Counsel provide a favorable written
opinion on the legality of ongoing negotiations with the low bidder
and submit that opinion to the Council no later than its meeting on
August 7, 1991.
--re/tut-44cl 4)
HELENE H. HALE, CHAIRWOMAN
(ABSENT & EXCUSED) )1)/
ROBERT H. MAKUAKANE, VICE CHR. BRIAN J. DE?, LIMA, MEMBE
TAKASHI DOMIN 0, MEMB A, ' , MEMBE'
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//
HARRY S. UDDLE, MEMBER ,CER K. SCHUTTE, MEMBER
POL