HomeMy WebLinkAboutREP FC 415 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 462, reports
as follows :
The purpose of Bill 462 is to amend Ordinance 90-56, relating to the
issuance of general obligation bonds as follows:
SECTION 2 . Authorization of Bonds. There are hereby
authorized for issuance and sale general obligation bonds of the
County in the principal amount of Twenty Nine Million Three Hundred
Eighty Seven Thousand Dollars ($29,387, 000) . Twenty Eight Million
Eight Hundred Eleven Thousand Dollars ($28, 811,000) of the proceeds
derived from the sale of such bonds, or any series thereof, shall be
used to pay all or part of the cost of appropriations for the public
improvement projects of the County to be financed from general
obligation bond funds made in Ordinance No. 87-59, No. 88-81 [and]
No. 89-86_,_ No. 90-75 and No. 91-51 for the fiscal years ending
June 30, 1988, June 30, 1989 [andh. June 30, 1990, June 30, 1991 and
June 30, 1992, respectively, as follows:
Ordinance No. Project Amount
[87-59] 90-75 Old Waiakea Mill Sewer $ 400, 000
[87-59] 90-75 Kealakehe Effluent Disposal System 800, 000
Subtotal $ 1,200, 000
88-81 Hilo Wastewater Treatment & Conveyance $10, 100,000
88-81 Old Kona Airport Pumping Station &
Force Main 900, 000
88-81 Kealakehe Effluent Disposal System 200, 000
88-81, 91-51 West Hawaii Landfill 4 , 100, 000
Subtotal $15,300, 000
89-86 West Hawaii Landfill $ 8,300, 000
89-86 Hilo Wastewater Treatment & Conveyance 2,250, 000
89-86 Waiakea Houselot Sewer 200, 000
89-86 Old Airport Pumping Station 1, 561, 000
Subtotal $12,311, 000
TOTAL $28, 811, 000
FC REPORT NO, 415
ADOPTED: AUG 7 1991
FC-415 Page 2 July 30, 1991
Five Hundred Seventy Six Thousand Dollars ($576,000) of the proceeds
derived from the sale of such bonds, or any series thereof, shall be
used to pay all or part of the cost of issuance of such bonds, or
any series thereof, including without limitation, the initial fees
of paying agents and registrars, the fees of any financial
consultants and bond counsel, underwriter ' s discount, the cost of
preparation of any official statement, notice of sale and definitive
bonds, and any costs of publications required by law, and such costs
of issuance shall be allocated pro rata to each of the particular
public improvements financed from such bonds, or any series
thereof . The proceeds derived from the sale of such bonds may also
be used to repay funds borrowed from the General Fund pursuant to
one or more resolutions of the Council.
Communication No. 2692, dated July 15, 1991, from the Finance
Director, transmits three (3) Bills (Bills 462, 463 & 464) for
Council consideration. Bill 463 proposes reappropriating lapsed
funds for the West Hawaii Landfill and Bill 464 reappropriates funds
for the Old Kona Airport Gym. The subject Bill 462 proposes
amendments to Ordinance 90-56 to reflect the reappropriation of the
West Hawaii Landfill project. Also, there are other amendments to
update the subject ordinance by deleting those ordinances no longer
applicable and adding the ordinance and fiscal year notations which
correctly represent the current legislation for public improvement
project appropriation.
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.
FC- 415 Page 3 July 30, 1991
Your Committee on Finance is in accord with the intent and purpose
of Bill 462 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.
HELENE H. HALE; CHAIRWOMAN
(ABSENT & EXCUSED)
ROBERT H. MAKUAKANE, VICE CHR. BRI N J. D LIMA, MEMBER -
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TA ' SHI DOM 'NGO, I MBER MERL •y , MEMBE'
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HARRY S. RUDILE, MEMBER • ' ! R • . SCHUTTE, MEMBER
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