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REPORT OF THE <br /> COMMITTEE ON FINANCE <br /> DATE: March 8, 2012 Re: Comm. No. 596/Res. 225-12 <br /> PLACE: Council Chambers <br /> Hilo, Hawaii 96720 <br /> TIME: 10:07 a.m. <br /> Council Chair and Members <br /> Hawaii County Council <br /> Hilo, Hawaii 96720 <br /> Your Committee on Finance, to which was referred Resolution 225-12, reports as follows: <br /> Resolution 225-12, transmitted by Finance Director Nancy Crawford via Communication <br /> No. 596, dated February 17, 2012, authorizes the payment of funds of a later fiscal year and of <br /> more than one fiscal year for a multi-year lease of Real Property. This is a resolution entering <br /> into a multi-year lease for ten years, with one ten-year option to extend the lease, for office space <br /> located at the Department of Water Supply, 345 Kekuanao`a Street, Hilo, Hawaii. By entering <br /> into this lease, and relocating the Department of Environmental Management and the <br /> Department of Information Technology offices to this location, the County expects to save <br /> $170,000 over the course of the initial ten years compared to present costs. <br /> Pursuant to Section 10-11, Hawaii County Charter, any contract, lease or other obligation <br /> requiring payment of funds from the appropriations of a later fiscal year or of more than one <br /> fiscal year shall be made or approved by resolution. <br /> Chair Brenda Ford relinquished the chairmanship to Vice Chair Dominic Yagong, and he <br /> assumed chairmanship of the Finance Committee. <br /> Finance Director Nancy Crawford and Real Property Tax Manager Ken Van Bergen appeared <br /> before Your Committee. Ms. Crawford commented on cost savings to the County partnering <br /> with the Department of Water Supply and relocating Department of Information Technology and <br /> Department of Environmental Management offices. <br /> Some of Your Committee Members stated their concern on option year's language contained in <br /> the contract and limitation it sets on the Council. Ms. Crawford responded options period in the <br /> contract will allow administration to negotiate and modify lease rents at the end of ten years, <br /> without having to bring it back to Council. Mr. Van Bergan commented that the options period <br /> is a premise which has been in existence on lease contracts with the County; and the Puainako <br /> Center lease where IT and DEM offices are located is due to expire in August, 2012. <br /> For informational purposes, Mr. Hoffmann voted "kanalua" twice. <br /> FC Report No. 202 <br />