HomeMy WebLinkAboutCOM 0634.000 2018-2020 Harry Kim ' Deanna S. Sako
Mayor � � � 'r Director
Steven A. Hunt
o Deputy Director
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County of Hawaii
Finance Department
25 Aupuni Street,Suite 2103 • Hilo,Hawaii 96720
(808)961-8234 Fax(808)961-8569
November 14, 2019
Aaron Chung, Council Chair and
Members of the Hawaii County Council -
Hawai`i County Council
25 Aupuni Street
Hilo, Hawaii 96720
Re: Resolution for multi-year lease
In 2018, the County performed a site selection study to determine the best location for a
compost facility. The Department of Environmental Management— Solid Waste
Division has determined that a site located within the W. H. Shipman Industrial Park
meets all contract needs, environmental assessments, community concerns and
planning/permitting requirements. Therefore,they seek to enter into an agreement with
W. H. Shipman LTD for a seven(7) year lease with two (2) additional five-year options
for this property.
Enclosed is a resolution authorizing the County to enter into a seven-year, multi-year.
lease agreement with W. H. Shipman LTD for a portion of real property as indicated
above. If there are any questions,please do not hesitate to call Robin Bauman of the
Department of Environmental Management at 961-8179.
Deanna S. Sako
Director of Finance
Enc.
c: Environmental Management
Finance Property Management
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Comm. No.
Hawaii County is an Equal Opportunity Employer and Provider Ref. To: fG
Ref. Dote NOV 15 2019
Form #: B-52
7/18/91
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
DEPARTMENT: Environmental Management DATE: 11/13/2019
STAFF CONTACT: Greg Goodale PHONE: 961-8270
A. REQUEST:
Resolution authorizing the Mayor to enter into a multi-year lease agreement for real property for the County
of Hawaii Department of Environmental Management.
B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED
The County of Hawaii - Solid Waste Management Plan includes the diversion of greenwaste from the waste
stream being landfilled in Hawaii County. In 2016 the county entered into a 10 year contract with its vendor,
Hawaiian Earth Recycling, LLC, with two additional five year option periods. In 2018 the county renegotiated
the contract terms. In 2018, the County did a site selection study to determine the best location for the
Compost Facility. The top ranked site at the W.H. Shipman Industrial Park was the subject of an
Environmental Assessment.
The Department of Environmental Management - Solid Waste Division has determined that this site meets
all contract needs, Environmental Assessments, Community concerns, and planning/permitting
requirements. We are requesting a 7 year lease with two additional five year options for a portion of TMK (3)
1-6-003:090 located within the W.N. Shipman Industrial Park in the Puna District.
Without this requested multi-year lease agreement, the County of Hawaii will not be able to meet its
negotiated contract terms with its vendor, Hawaiian Earth Recycling, LLC, to provide a comprehensive
organic waste diversion program. A multi-year lease agreement is required before construction can
commence for the new site. On July 1, 2020, the contractor will begin charging a higher per ton rate for all
materials, a rate that was negotiated for the production of mulch and compost, making finalization of the
requested lease a fiscal imperative as the compost materials will only be able to be processed at the new
facility.
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f s er P
SIGNED: f DATE: 11/13/2019
Department Head