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HomeMy WebLinkAboutREP FC 597 08/17/1992 REPORT OF THE COMMITTEE ON FINANCE Date: August 17, 1992 Re : C-3967 Place: Councilroom Time: 9 : 00 a .m. Council Chairman and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance to which was referred Resolution 506-92, reports as follows : The purpose of Resolution 506-92 is to authorize the Director of Finance to negotiate a lease with the Hawaii County Economic Opportunity Council (HCEOC) for the purpose of operating a childcare program for preschool children of low-income families . Said lease would be for twenty years at $1. 00 per year . Section 2-120(a) (2) of the Hawaii County Code provides for the leasing of county property to non-profit organizations at such rentals and terms and conditions as deemed proper . Your Committee further understands that the childcare facility will be constructed by the State of Hawaii and turned over to the County of Hawaii for operation as a childcare facility and community center . The Hawaii County Economic Opportunity Council will operate and maintain the childcare facility while the Department of Parks and Recreation will operate and maintain the community center . After being apprised of the procedures of Chapter 2, Article 19 of the Hawaii County Code, your Committee was concerned that Resolution 506-92 did not contain a statement of finding that the public interest demands that the real property be leased through negotiation. Your Committee was also unclear as to what authority was being granted by the approval of the Resolution and it did not believe that the Council would be meeting its fiduciary responsibility in granting its approval without full knowledge of the contents of the lease contract . FC REPORT No, 597 ADOPTED: SEP 2 1992 a REPORT OF THE COMMITTEE ON FINANCE Your Committee has directed the Corporation Counsel to review the resolution and to provide the necessary amendments for the Council meeting . Your Committee on Finance concurs with the intent to lease the facility at the Clem Akina Park to the HCEOC organization to operate a childcare program for preschool children of low-income families . Your Committee on Finance recommends that the Council consider Resolution 506-92 with the recommendations for amendment and also review the lease contract . Your Committee further recommends that the Council take the appropriate course of action based upon the following : 1 . Approve Resolution 506-92 with amendments and attach lease contract to Resolution. 2 . Approve Resolution 506-92 with amendments and recognize that lease contract, if not available, would still need to be approved by the Council . Respectfully submitted, COMMITTEE ON FINANCE AYES NOES ALONZO X 411.S// agri e , / 0 ARAKAKI X , . Y. RAKAKI , CHAIRMAN DE LIMA X DOMINGO X LAI X LA/HT MAKUAKANE X RUDDLE X FC REPORT NO. 597 ADOPTED: