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HomeMy WebLinkAboutREP FC 323 01/22/1991 OFFICE INFORMATION ONLY Meeting: February 6 , 1991 Action: Resolution 271-91 was filed at the Council meeting. Re: REPORT OF THE COMMITTEE ON FINANCE Date: January 22, 1991 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. 271-91, reports as follows: Resolution No. 271-91 proposes to authorize 1) that the external audit contract period be for three consecutive fiscal years commencing with the audit period ending June 30, 1991; 2) that the Chairman of the Council perform all of the necessary tasks associated with the issuance of the contract . Section 10-13 of the Hawaii County Charter mandates that the County Council shall provide for an annual independent audit of the accounts and other evidences of financial transactions of the County and of every County agency and executive agency. Section 10-11 of the Hawaii County Charter also requires that any contract, lease or other obligation requiring the payment of funds from the appropriations of a later fiscal year or of more than one fiscal year shall be made or approved by resolution. In order for the Chairman of the Council to execute the contract, a resolution approved by the Council is necessary. This action is necessary by a 1988 opinion which in essence stated that the Chairman of the Council has no unilateral authority to enter into contracts on behalf of the Council unless the Council specifically authorizes him by resolution. Issuance of a multi-year contract benefits the County by having lower proposals and continuity. Lower costs are due to start-up costs being spread over the contract term. Costs for the previous three years were $77, 000, $80, 800 and $84, 800, respectively. Your Committee was also made aware that the last bid proposal resulted in three bids being submitted and, amongst the two low bids, there was a difference of about $1, 000 . Bid figures show a substantial discount . FC REPORT NO. 323 ADOPTED: 4 , • FC- 323 Page 2 January 22, 1991 Your Committee on Finance concurs with the intent and purpose of Resolution No. 271-91 and recommends its adoption. HELENE H. HALE, CHAI WO N I 6;-;- 4" ROBER H. MAKUAKANE, VICE CHR. BRIAN J DE LIMA, MBER • Vt°417 t/L:d V :...mss wec j . aYie------'. TA A. SHI Do, INGO 1 n BER MERLE , LAI, MEMBE p , w .�!�� ' � .'m\ �'�. .ice_ "rx . HARRY S. •UDDLE, MEMBER S` NCER K. SCHUTTE, MEMBER LA/HAT