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HomeMy WebLinkAboutCOM 0206.000 2014-2016William P. Kenoi Mayor Deanna S. Sako Director Lisa K. Miura Deputy Director County of Hawaii Finance Department ,- 25 Aupuni Street, Suite 2103 • Hilo, Hawaii 96720 (808) 961 -8234 • Fax (808) 961 -8569 CD �.n C � 3 °r March 12, 2015 - N Dru Kanuha, Council Chair and ' Members of the Hawaii County Council may- r" Hawaii County Council 5. 25 Aupuni Street -- Hilo, Hawaii 96720 Re: Resolution for Multi -year Organic Waste Contract Enclosed is a resolution authorizing the payment of funds of a later fiscal year and of a multi - fiscal year contract for organic waste diversion and compost operations in West Hawaii and East Hawaii. The current contract for green waste operations expires on December 31, 2015. The Department of Environmental Management intends to issue a new procurement to replace the current organic diversion contract when it expires. The department intends to continue providing green waste drop -off sites at recycling and transfer stations for the convenience of residents, including Kailua -Kona. Through research of the industry, they have determined that a multi -year contract is necessary to enable adequate return on investment, and that a four year contract will provide the opportunity, after the initial term, to expand organic diversion programs to a composting operation that can include other feedstock such as paper, food and compostable plastic. If there are any questions, please do not hesitate to contact Bobby Jean Leithead Todd of the Department of Environmental Management at 981 -8083. 0Ap+. Deanna S. Sako Director of Finance Enc. cc: Environmental Management Zp — l 5 Comm. Ref. To: Hawai'i County is an Equal Opportunity Employer and Provider Ref. Date MAR 13 2015 Form #: B -52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Environmental Management (DEM) DATE STAFF CONTACT: Bobby Jean Leithead Todd PHONE A. REQUEST: February 23, 2015 961 -8083 Resolution authorizing the payment of funds of a later fiscal year and of a multi - fiscal year contract for organic waste diversion operations in West Hawai'i and East Hawaii. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The current contract for greenwaste operations will expire on 12/31/15. The annual cost for this contract is approximately $1,800,000. The Department of Environmental Management intends to issue a new procurement to replace the current organic diversion contract when it expires. The operations will include the East Hawaii Organics Facility and the West Hawaii Organics Facility. The Department intends to continue providing green waste drop -off sites at county recycling and transfer stations for convenience of residents, including Kailua -Kona. Through research of the industry, it has been determined that a multi -year contract is necessary due to the high start-up and equipment costs. To enable return on investment a four (4) year initial contract will provide the opportunity for cost - effective organics diversion, treatment of mulch for invasive species and a compost demonstration project. A four (4) year term will also provide the County the opportunity after the initial term to expand organic diversion programs to a composting operation that can include other feedstocks like paper, food & compostable plastics. SIGNED: DATE: February 23, 2015 Department Head