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Home My WebLink AboutCOM 0206.002 2014-2016KAREN EOFF Chairperson VALERIE T. POINDEXTER Vice Chair J�tV of H,W +T,rF OF MI�' HAWAII COUNTY COUNCIL County ofHawai'i Hawaii County Building 25 Aupuni Street Hilo, Hawai'i 96720 .DATE: April 10, 2015 TO: Dru Mamo Kanuha, Council Chair and Members of the Hawaii County Council FROM: Karen Eoff, Chair \�J W AARON S.Y. CHUNG MAILE "MEDEIROS" DAVID GREGGORILAGAN DRU MAMO KANUHA DENNIS "FRESH" ONISHI DANNY PALEKA MARGARET WILLE C7 C kmi Finance Committee SUBJECT: Proposed Amendments to Resolution No. 126-15; RESOLUTION AUTHORIZING THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF A MULTI - FISCAL YEAR AGREEMENT FOR FURNISHING ORGANIC WASTE DIVERSION OPERATIONS IN WEST HAWAII AND EAST HAWAII FOR THE DEPARTMENT OF ENVIRONMENTAL MANAGEMENT Please see below proposed amendments to Resolution No. 126-15. These amendments would amend the title, paragraphs 5 through 9, and paragraph 11 of this Resolution. The proposed amendments are illustrated in Ramseyer format with respect to the contents of Resolution 126-15 (material to be deleted is bracketed and stricken, material to be added is underscored). The title of this Resolution would be amended by adding a period at the end of the title and would read as follows: "RESOLUTION AUTHORIZING THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF A MULTI -FISCAL YEAR AGREEMENT FOR FURNISHING ORGANIC WASTE DIVERSION OPERATIONS IN WEST HAWAII AND EAST HAWATI FOR THE DEPARTMENT OF ENVIRONMENTAL MANAGEMENT." 2. Paragraphs 5 through 9 would be amended to read as follows: "WHEREAS, the new contract will accept [gr-eenwaste] organic waste generated from county recycling and transfer stations, landfills and other private entities[. The types ofor-,., nie ter-i,i i 41 ; „ludo g to and , „tTeated wood r ]; and Hawaii County is an Equal Opportunity Provider and Employer Comm. No. 2,U 6 2 Ref. To: GDW L CO. gateR I � 2015 WHEREAS, the new procurement will solicit the costs for providing treatment of the mulch for invasive species before being distributed to the public [at the Frit 14awai' Or -g tries Faeil ty]; and WHEREAS, the new procurement will solicit the costs for providing a compost [aoY, enstfati ,r projee ] operation for a portion of the organic materials 7, �[from the E ii4`L� ai'i�r�iics caeil�demonstration pr-ejeet �F�the County . 44 valuable data on the sueeess of composting >the market faf selling> the revei+ue generated ffom sa4es and other- infer-mation. This data will be used for- future f or-ganies diver-sion to inelude other- organie materials like paper-, food eampostable plasties]; and WHEREAS, the high equipment and operations start-up costs[, that aro estimated between $500,000 to ,] justify a multi-year commitment to recoup costs and secure reasonable terms for equipment financing. A multi-year commitment also provides the County the most favorable opportunity for competitive bids; and WHEREAS, it is in the County's best interest to contract for the operation of organic waste diversion sites based on an initial multi-year agreement not to exceed [fes (4) ears.] eleven years. The contract period will include [ fee (3) .,e ] ten years of operations and up to one [M] year for site preparation and mobilization & demobilization. The agreement will provide the option to extend for up to two [(2-)] additional [E)ne (1) five-year periods; and" Paragraph 11 would be amended to read as follows: "NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that in accordance with Article X, Section 10-11 of the Hawaii County Charter, the Mayor is hereby authorized to enter into [a-fatir-(4}] an eleven year contract and to exercise the option to extend for up to two five-year for services of furnishing and implementing [greenwasteee'�] organic waste recycling sites in West Hawaii and East Hawaii for the Department of Environmental Management and that sufficient funds be budgeted in future fiscal years to cover the anticipated obligation of the County under the terms of the agreement." A draft copy of Resolution 126-15, Draft 2, with these amendments incorporated therein is attached. Thank you. KE/wpb Attachment: Resolution 126-15, Draft 2 2 RESOLUTION AUTHORIZING THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF A MULTI -FISCAL YEAR AGREEMENT FOR FURNISHING ORGANIC WASTE DIVERSION OPERATIONS IN WEST HAWAI'I AND EAST HAWAII FOR THE DEPARTMENT OF ENVIRONMENTAL MANAGEMENT. WHEREAS, the County 2009 Integrated Resources and Solid Waste Management Plan identified that 54% or 114,000 tons of the waste disposed at County landfills were organic materials that could be recycled, thereby preserving valuable landfill space; and WHEREAS, the County established in 2013 organics diversion operation sites referred to as the West Hawai`.i Organics Facility adjacent to the West Hawai'i Sanitary Landfill and the East Hawaii Organics Facility adjacent to the Hilo Sanitary Landfill where greenwaste and untreated wood pallets are processed into mulch; and WHEREAS, the County has an existing organics diversion contract that will expire on December 31, 2015; and WHEREAS, the County is developing a new procurement to replace the current contract for the operation of the West Hawaii Organics Facility and the East Hawaii Organics Facility; and WHEREAS, the new contract will accept organic waste generated from county recycling and transfer stations, landfills and other private entities; and WHEREAS, the new procurement will solicit the costs for providing treatment of the mulch for invasive species before being distributed to the public; and WHEREAS, the new procurement will solicit the costs for providing a compost operation for a portion of the organic materials; "and WHEREAS, the high equipment and operations start-up costs justify a multi-year commitment to recoup costs and secure reasonable terms for equipment financing. A multi-year commitment also provides the County the most favorable opportunity for competitive bids; and WHEREAS, it is in the County's best interest to contract for the operation of organic waste diversion sites based on an initial multi-year agreement not to exceed eleven years. The contract period will include ten years of operations and up to one year for site preparation and mobilization & demobilization. The agreement will provide the option to extend for up to two additional five-year periods; and WHEREAS, Article X, Section 10-11 of the County Charter requires that any contract, lease or other obligation requiring payment of funds from the appropriations of a later fiscal year or more than one fiscal year be approved by resolution; and NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII that in accordance with Article X, Section 10-11 of the Hawai'i County Charter, the Mayor is hereby authorized to enter into an eleven year contract and to exercise the option to extend for up to two five-year periods for services of furnishing and implementing organic waste recycling sites in West Hawai'i and East Hawaii for the Department of Environmental Management and that sufficient funds be budgeted in future fiscal years to cover the anticipated obligation of the County under the terms of the. agreement. BE IT FINALLY RESOLVED that the County Clerk shall forward a copy of this resolution to the Mayor, the Director of Environmental Management and the Director of Finance.