HomeMy WebLinkAboutREP FC 202 03/08/2012 2010-2012 REPORT OF THE
COMMITTEE ON FINANCE
DATE: March 8, 2012 Re: Comm. No. 596/Res. 225-12
PLACE: Council Chambers
Hilo, Hawaii 96720
TIME: 10:07 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution 225-12, reports as follows:
Resolution 225-12, transmitted by Finance Director Nancy Crawford via Communication
No. 596, dated February 17, 2012, authorizes the payment of funds of a later fiscal year and of
more than one fiscal year for a multi-year lease of Real Property. This is a resolution entering
into a multi-year lease for ten years, with one ten-year option to extend the lease, for office space
located at the Department of Water Supply, 345 Kekuanao`a Street, Hilo, Hawaii. By entering
into this lease, and relocating the Department of Environmental Management and the
Department of Information Technology offices to this location, the County expects to save
$170,000 over the course of the initial ten years compared to present costs.
Pursuant to Section 10-11, Hawaii County Charter, any contract, lease or other obligation
requiring 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.
Chair Brenda Ford relinquished the chairmanship to Vice Chair Dominic Yagong, and he
assumed chairmanship of the Finance Committee.
Finance Director Nancy Crawford and Real Property Tax Manager Ken Van Bergen appeared
before Your Committee. Ms. Crawford commented on cost savings to the County partnering
with the Department of Water Supply and relocating Department of Information Technology and
Department of Environmental Management offices.
Some of Your Committee Members stated their concern on option year's language contained in
the contract and limitation it sets on the Council. Ms. Crawford responded options period in the
contract will allow administration to negotiate and modify lease rents at the end of ten years,
without having to bring it back to Council. Mr. Van Bergan commented that the options period
is a premise which has been in existence on lease contracts with the County; and the Puainako
Center lease where IT and DEM offices are located is due to expire in August, 2012.
For informational purposes, Mr. Hoffmann voted "kanalua" twice.
FC Report No. 202
FC-202 Page 2 March 8, 2012
Your Committee on Finance is in accord with the purpose and intent of Resolution 225-12, and
recommends its adoption.
dkr
AYES NOES A&E EX Respectfully submitted,
BLAS X
FORD X COMMITTEE ON FINANCE
HOFFMANN X
IKEDA X
ONISHI X ?--/.(-)4,4c-jr71'1"---
PILAGO X
SMART X BRENDA FORD, CHAIR
YAGONG X FC REPORT NO. 202
YOSHIMOTO X ADOPTED: MAR 2 1 2012