HomeMy WebLinkAboutREP FC 371 06/03/1987 1984-1988 A
REPORT OF THE 4
COMMITTEE ON FINANCE
Date: May 26 , 1987
Place: Councilroom
Time: 9 : 00 a .m .
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance , to which was referred Communication
No . 1114 reports as follows:
Communication No . 1114 outlines a proposal by Motorola, Inc. to
complete the Hawaii Loop Microwave Communication System. The
project consists of the following:
Component A - South Point, Kauna Point & Ohia Mill
Component B - Kahua Ranch , Kohala , & Honokaa
Component C - Honokaa, Iolehaehae & Baseyard
Component D - Kailua, Moananuiahea & Kahua Ranch
The administration seeks authority to send a letter of intent to
accept their financing proposal by Motorola of an 8 percent per
annum rate . Deadline for this acceptance has been set as no later
than the end of June .
Pursuant to Section 10-11 , Hawaii County Charter , 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. Accordingly, a proper
resolution will have to be acted upon at a later date .
Your committee is aware that a modified proposal was negotiated with
Motorola , Inc . , which would change the per annum rate to
7 .75 percent upon approval .
Your Committee on Finance recommends that the Council Chairman and
Mayor be authorized to execute a letter of intent to Motorola, Inc .
by May 30 , 1987 to accept a finance plan to complete the Hawaii Loop
Microwave Communication System by July 1988 , at a cost of
$1 ,333 ,769 .59 , excluding the 4 percent general excise tax.
Execution of the proposal will result in a substantial savings to
the County over a seven-year period.
A down payment is required this fiscal year and annual payments will
commence in FY ' 88-89 .
FC REPORT No. 371
ADOPTED :
• .,..
411
REPORT T OF THE 411
COMMITTEE ON FINANCE
Date: May 26 , 1987
Place: Councilroom
Time: 9 : 00 a .m .
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
•
Your Committee on Finance, to which was referred Communication
No . 1114 reports as follows:
Communication No . 1114 outlines a proposal by Motorola, Inc. to
complete the Hawaii Loop Microwave Communication System. The
project consists of the following:
•
Component A - South Point, Kauna Point & Ohia Mill
Component B - Kahua Ranch , Kohala , & Honokaa
Component C - Honokaa , Iolehaehae & Baseyard
Component D - Kailua, Moananuiahea & Kahua Ranch
The administration seeks authority to send a letter of intent to
accept their financing proposal by Motorola of an 8 percent per
annum rate . Deadline for this acceptance has been set as no later
than the end of June .
Pursuant to Section 10-11 , Hawaii County Charter , 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. Accordingly , a proper
resolution will have to be acted upon at a later date .
Your committee is aware that a modified proposal was negotiated with
Motorola , Inc . , which would change the per annum rate to
7 .75 percent upon approval .
Your Committee on Finance recommends that the Council Chairman and
Mayor be authorized to execute a letter of intent to Motorola , Inc .
by May 30 , 1987 to accept a finance plan to complete the Hawaii Loop
Microwave Communication System by July 1988 , at a cost of
$1 ,333 ,769 .59 . Execution of the proposal will result in a
substantial savings to the County over a seven-year period .
A down payment is required this fiscal year and annual payments will
commence in FY ° 88-89 .
FC REPORT No . 371
(.AMENDED)
ADOPTED :` i�ism 3 1987
. . . .,
s .
411 III
FC-371 Page 2 May 26 , 1987
The terms and conditions of the finance plan are understood to be
7 years with no prepayment penalty at an interest rate of
7 .75 percent per annum, based on a tax-exempt lease program;
however , in no way shall the negotiated rate exceed 8 percent per
annum.
'Lk 1---6. &----
FRANK DE LUZ III, CHAIRMAN
(ABSENT & EXCUSED)
LORRAINE R. JITCHAKU-INOUYE, V.C. 416L. K. DAHLBERG, MEMBER 41,
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TAKASHI DOMINGO, MEM& R 'USSELL S. KOKUB 'N, MEMBER
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MERL K. LAI, MEMBER SPENCER K. SCHUTTE, MEMBER
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