HomeMy WebLinkAboutCOM 0216.000 1998-2000 VV OR N
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Stephen K. Yamashiro - \W~~ Harry A. Takahashi
Mayor f; Director
ar+p., ~ •q.r. S. K. Schutte
~r4`~OF N~~ ~ Deputy
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DEPARTMENT OF FINANCE
25 Aupuni Street, Room 118 Hilo, Hawaii 96720-0252
(808)961-8234 • Fax (808)961-8248
Mazch 23, 1999
Honorable James Arakaki, Chairperson and
Members of the County Council
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
Re: Resolution Authorizing Mayor to Enter into Agreement
Enclosed is a resolution authorizing the Mayor to enter into a master municipal
lease and purchase agreement to finance the energy efficiency measures in the
various County facilities for an energy efficiency retrofit.
If there are any questions, please do not hesitate to call the Department of
Reseazch and Development.
Hazry A.ahashi
Director of inance
APPROVED:
S phe K. amashiro
Mayor p`
Enc.
Cc: Mr. Raymond Carr
Comm. Na
F71e Na F I N
ReP. To: F~
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DEPARTMENT: Research and Development D~:March 19, 1999
Raymond Carr 961-8457
STAFF CONTACS:
A. REOUEST•
Submit to County Council s Resolution authoriattg the Mayor to enter into a LO-year term ma~2er
Lease and Purchase Agreement to finance installation of energy efficiency measures in various
County facilities.
B. l3ACRGROttttD AND JL6r T~FICA2ION FUSE ADDi=IONAL St7FE25 AS NEEDEA__1c
In 1997, the Hawaii County Building in Hilo was retrofitted with ®ergy efficient lighting and air
conditioning egtipment The $480,000 retrofit was cm-ried out by mean of a Performance
Contract and was financed by atax-exempt municipal lease over a [en-year term. Post-retrofit
experience has been very favorable:
• The project enabled the County to modernize the energy-related equipment in the County
Building without using capital funds. Lease payments are offset by operational wst savings.
• Work was provided for the local contradots that installed the equipment
• The environment benefited in a number of ways -reduced burning of fossil fuels for power
production, elimination of CFC refrigerants previously used, and proper disposal of
fluorescent lamp ballasts containing PCBs.
In light of this favorable experience, a second performance contract is being implemented to
retrofit the ruining inventory of building facilities operated by the County including those of
Firc, Police, Parks ~ Recreation and Public Works departments. It is planned to finance this
project by means of a second tax-exempt mtttticipal lease with the same type of guarantee from
the project contractor that energy and maintenance cost savings will equal or exceed the
combined haw leash and maintenance fee payments.
The projected capital cost to be financed by this leave is $1,423,886.52 Currently quoted interest
rate is 4.75%. Based on this quarterly payments aze projected at $44,398.10 over dre ten-year
term.
Attachcd is a draft Resolution that includes a sample Mttaicipal Leave Agreement and an
Amortization and Prepayment Schedule.
5. U i ~ v i-~ HAZE : 3 I i 9
SIGNED:
Dep rtmea Head