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Home My WebLink AboutRES 448 Draft 01 2006-2008 ~[Y O! M u~ •~4 COUNTY OF HAWAII STATE OF HAWAII RESOLUTION NO. 448 0'7 RESOLUTION AUTHORIZING THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND MORE THAN ONE FISCAL YEAR FOR AMULTI-YEAR LEASE OF REAL PROPERTY WHEREAS, a real property, located at 550 Kilauea Avenue in South Hilo, further identified as Tax Map Key: (3) 2-2-010-001, is available and deemed suitable for the County's needs; and WHEREAS, this property, the former site of the Hawaii Hardware Store, has approximately 19,171 square feet and includes aretail/warehouse facility with approximately 8,181 square feet of space; and WHEREAS, the County wishes to enter into amulti-year lease with Hawaii Hardware Company Limited for ten (10) years, commencing on February 1, 2008, or upon completion of all improvements required of the Landlord, which occurs later; and WHEREAS, the rental cost per month is $9,900 for the first five (5) years and then goes up to $11,454 per month for the remaining five (5) years of the lease; and WHEREAS, due to the limited on-site parking, the use of the Hawaii Hardware warehouse property facility would not lend itself to intensive public use but would be an excellent opportunity to establish a warehousing and storage facility in near proximity to existing County facilities; and WHEREAS, with the sunset of Act 90 on June 30, 2007 and to comply with settlement of UPW vs. COH, 98-244, the Department of Public Works has to cancel contracts forjanitorial and groundskeeping services by December 31, 2007; and WHEREAS, to replace these contractual services, twenty (21) positions were established and of which ten (10) of these positions, along with space to store their equipment and supplies, need to be housed somewhere in South Hilo; and WHEREAS, this property also provides space to accommodate the four (4) Engineering Division construction inspectors along with their testing lab and allowing their present office location to be used by the expanding Traffic Division; and WHEREAS, the Finance Department's Purchasing Division is looking at locating the storeroom at this property instead of returning to the basement of the County Building as the handling considerations and logistics of the new site makes it more advantageous, effective, and efficient to house it there; and WHEREAS, having the extra warehouse space in this location presents other benefits to the County departments/agencies such as 1) the establishment of a large industrial shredder that'll allow them to bring in old files for shredding and recycling at the same time that they pickup supplies; and 2) the establishment of a scanning center here to allow for departments to set up periodic scanning projects of their old records. WHEREAS, another benefit of this property/facility is that County agencies will have storage for equipment, old files/records, etc. that are currently taking up valuable space within existing operational facilities; and WHEREAS, a copy of the Proposed General Terms and Conditions is attached as Exhibit "A"; and WHEREAS, 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 and more than one fiscal year be approved by resolution. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII: 1. That the Mayor is hereby authorized to enter into amulti-year lease agreement for warehouse space located at 550 Kilauea Avenue in South Hilo, identified as Tax Map Key: (3) 2-2-010-001 2. That sufficient funds be budgeted in future fiscal years to cover the anticipated obligations of the County under the lease agreement. BE IT FURTHER RESOLVED that a copy of this resolution be transmitted to the Department of Finance. Dated at H; i ~ ,Hawaii, this Stn day of January .Zoos. INTR DUCED BY: (M-- J COUNCIL MEMB , C N OF HAWAII COUNTY COUNCIL ROLL CALL VOTE County of Hawaii Hilo, Hawaii AYES NOES ABS Ex FORD X I hereby certify that the foregoing RESOLUTION was by the HIGA g vote indicated to the right hereof adopted by the COUNCIL of HOPPMANN the County of Hawaii on Janaury 9, 2008 IKEDA X JACOBSON X ATTEST NAEOLE X PILAGO g YAGONG X YOSHIMOTO X 9 0 0 0 ~ Reference C-849/F+C_210 ~ n L C013NT C~ CHAIRMAN S IN F IC RESOLUTION NO. 448 COUNTY OF HAWAII OFFER TO LEASE PROPOSED GENERAL TERMS AND CONDITIONS Date: November 2, 2007 To: Hawaii Hardware Co. From: William Takaba Attention: Susan Penisten Subject to the approval of the Hawaii County Council, the COUNTY OF HAWAII ("County") offers to lease the premises described below from HAWAII HARDWARE CO. ("Landlord"), on the following terms and conditions: AREA AND LOCATION: Approximately 8,181 square feet of retaiUwarehouse space, together with approximately 10,990 square feet of paved parking area at 550 Kilauea Avenue, further identified as Tax Map Key: 3rd/ 2-2-010-001, Hilo, Hawaii. USE OF PREMISES: The premises shall be used for the following purpose: Office and warehouse space for the County of Hawai' i. TERM: The term of the lease shall be for ten (10) years beginning February 1, 2008, or the date of delivery of the space to the County, whichever comes sooner. RENT: Years one through five $ 9,900.00 per mo. Years six through ten $11,454.00 per mo. Rent due on or before the 5`h day of each month or a late fee of $200.00 will be charged. MAINTENANCE & REPAIRS: Landlord shall be responsible for general maintenance, painting and repairs of the structural and exterior of the building together with the paved open space. Landlord intends to paint the exterior EXHIBIT "A" Offer to Lease -Hawaii Hardware Page 2 November 2, 2007 of the building. County maybe inconvenienced if painting is not completed before February 1, 2008. BUILDING SERVICES: The County shall be responsible for: • Janitorial maintenance of the interior of the premises and exterior premises surrounding the building, including parking lot, plants and hedges • Plate glass. • Water and sewer fees. • Replacement of light bulbs. • Maintenance and regular servicing of the air conditioning system. • Interior painting and cleaning. • Telephone service. • Electrical service. • Refuse collection. HAZARDOUS MATERIALS: To Landlord's current actual knowledge, the premises are free of hazardous waste. EXCISE TAX: In addition to the rent, County shall pay to Landlord the Hawaii General Excise Tax (currently 4.166%), or any successor tax, which may be payable thereon. REAL PROPERTY TAX: The County of Hawaii shall be responsible for real property taxes. However, Landlord agrees to submit a claim for exemption from real property tax as provided by Section 19-84 of the Hawaii County Code. Tenant will cooperate fully with Landlord in obtaining such exemption. DEPOSIT: None. OCCUPANCY: County shall be given occupancy of the premises by December 1, 2007, or upon completion of all improvements required of the Landlord, whichever occurs later. If there is a delay in Landlord giving occupancy, which delay is caused by events beyond the control of the Landlord, the obligation to pay rent shall be deferred until such occupancy shall be Approved by: Offer to Lease -Hawaii Hardware Page 3 November 2, 2007 granted in writing to County by Landlord, and the expiration date of the lease shall be adjusted back the same number of days as the period delay in the commencement date of the lease. LEASEHOLD IMPROVEMENTS: Landlord shall provide, at its expense, the following leasehold improvements prior to occupancy. • A final servicing of the building air conditioning system with a report indicating that the units and system are in good operating condition. Subsequent maintenance and repair of the air conditioning system shall be the responsibility of the County. • Replacement of screening material at the top of warehouse portions of the building • Removal of Hawaii Hardware Company signs on the building. • A roof inspection by a bona fide roofing contractor with a report on existing condition and making any recommended replacement or repairs. • At its discretion, demolish or repair the existing two-car carport. County shall, if so desired by Landlord at the end of the lease term, remove the interior improvements made by County. County may alter entrance, doors, windows, etc. and make other exterior improvements. County will not be required to remove exterior improvements other than its signs. SUBLEASING AND ASSIGNMENT: County shall not assign or sublease the whole or any portion of the premises without the prior written consent of Landlord, which consent shall not be unreasonably withheld. FACSIMILES: The parties hereto agree that telephone facsimile (FAX) copies of any documents required to be executed by the provision herein will be accepted as if signed in person, as originals. Upon request, the party submitting the facsimile shall provide the Approved by: Offer to Lease -Hawaii Hazdwaze Page 4 November 2, 2007 original document within a reasonable time. However, failure to provide such an original shall have no effect upon the validity of the execution by facsimile. COUNTERPARTS: The parties hereto agree that this Offer maybe executed in several counterparts, each of which shall be deemed an original, and all executed counterparts when taken together shall constitute a single complete agreement as long as each party has signed at least one counterpart. INSURANCE: County is aself-insured government entity. No insurance policy required. INDEMNIFICATION County shall indemnify, defend and save harmless the Landlord, its successors and assigns, from and against any and all actions, claims, suits, damages, or costs arising out of or resulting from the acts or omissions of County, its officers, agents, or employees, that may arise or result from the operation, maintenance or use of the leased premises. ADA: County shall be responsible for any required improvements to the building in compliance with Title III of the American with Disabilities Act ("ADA") and with OSHA rules and regulations. LEASE: County shall prepare a lease in conformity with the terms and conditions specified in this Offer to Lease, together with its standard lease terms, conditions and covenants. SPECIAL CONDITIONS: This offer shall be subject to the approval of the Hawaii County Council. AGENCY DISCLOSURES: Property Management Division, Department of Finance, represents County in this transactian. ACCEPTANCE OF OFFER: The acceptance of this Offer, or the acceptance of a counteroffer, shall not create legal rights or obligations with respect to the lease of the premises. Approved by: Offer to Lease -Hawaii Hazdwaze Page 5 November 2, 2007 Legal rights and obligations shall be created only upon the execution of the lease by Landlord and County, Both parties understand that neither this Offer to Lease nor any discussions or negotiations which the parties may have had or may have in the future regarding the premises shall create any obligation whatsoever on the part of either party to enter into a final and binding contract. By: William Takaba Title: Director of Finance Date: November 2, 2007 Landlord hereby represents to County that Landlord has good title to the premises and has full authority to accept the foregoing Offer and to enter into a lease of the premises in accordance with the terms of this Offer to Lease. Receipt and acceptance of this Offer is hereby acknowledged. By: Title: Owners Date: Approved by: