REP FC 124 2014/01/07 (2012-2014)

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REPORT OF THE COMMITTEE ON FINANCE DATE: January 21, 2014 Re: Comm. No. 596/Res. No. 267-14 PLACE: Council Chambers Kona, Hawai`i TIME: 11:07 a.m. Council Chair and Members Hawai`i County Council Hilo, Hawai`i 96720 Your Committee on Finance, to which was referred Resolution No. 267-14, reports as follows: Resolution No. 267-14, transmitted by Finance Director Nancy Crawford, via Communication No. 596 dated January 2, 2014, authorizes the Director of Finance to negotiate a lease of real property, being a portion of the former Pi`ihonua School, situated at Pi`ihonua, District of South Hilo, Island, County and State of Hawai`i and identified as being a portion of Tax Map Key: 2-5-028:017, to Parents and Children Together(PACT). The Finance Director would be authorized to negotiate a 30-year lease with PACT for the facility. PACT, which provides child care services, is desirous of the lease so that it may qualify for federal funding to make improvements to the child care center. Parks and Recreation Director Clayton Honma appeared before Your Committee for questions. He explained that PACT has been running the Head Start program at the Pi`ihonua and Hawaiian Beaches locations and has been leasing the facilities from the County of Hawai`i for $1 dollar per year, for the last three years. The low lease has allowed them to do much of the needed maintenance required on their own. However, Director Honma stated that this resolution, for a 30-year lease, will help them acquire federal financing and funding from agencies such as the Weinberg Foundation to make necessary ADA improvements such as building ramps; present possible photo voltaic alternatives for the Hawaiian Beaches location; and implement other renovations that are needed. Council Member Ilagan spoke in support of the resolution; however, he could not find the locations on the map provided. Parks and Recreation Director Honma stated that he will provide Council Members with a better map. Pursuant to Section 2-120(a)(2), of the Hawai`i County Code 1983 (2005 edition, as amended)provides that the Council of the County of Hawai`i may, by resolution approved by a majority of its members, authorize the finance director to negotiate a lease of real property to non-profit organization, at such rentals and on such terms and conditions as deemed proper. Pursuant to Section 2-120(b) provides such a lease of real property to governmental organizations may be made without notice or appraisal as required in Chapter 2, Article 19 of the Hawai`i County Code 1983 (2005 edition, as amended). FC Report No. 124