HomeMy WebLinkAboutREP FC 428 08/27/1991 REPORT OF THE
COMMITTEE ON FINANCE
Date: August 27, 1991 Re: Comm. 2776
Place: Councilroom
Time: 10 : 00 a .m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution
No . 366-91, reports as follows :
The purpose of Resolution No . 366-91 is to authorize the County to
enter into a five-year lease for approximately 6,432 square feet of
office space in the Central Kona Center (old Foodland Building) ,
Kealakekua, Hawaii , for the West Hawaii Branch, Office of the
Prosecuting Attorney. The resolution also requests that sufficient
funds be budgeted in future years to cover the obligations of the
County under subject lease agreement .
Communication No . 2776 from the Finance Director dated August 19 ,
1991, transmits for Council review said Resolution No. 366,
Departmental Request for Council Action and draft copy of lease
agreement .
Your Committee was informed the current Kona office is inadequate
and has no additional space within the complex to accommodate a
necessary and immediate expansion of staff . Other sites reviewed
were deemed inadequate for various reasons .
Your Committee was further informed the proposed lease site is
presently being prepared for occupancy. However, the proposed
multi-year lease requires Council approval . The subject five (5)
year lease with K-29-3 Partners ends June 30, 1996 at a cost of
$11, 127 . 36 a month (@ $1 . 73 sq. ft . )
A representative from the Prosecuting Attorney' s Office explained
the State is currently looking at sites for the Kona Civic Center
which may include a new courthouse. Current estimates are 5-6 years
before the site can be completed with all infrastructure services .
Thereafter, the Prosecuting Attorney' s Office would entertain moving
nearer to the facilities and that a 5-year lease is appropriate.
Your Committee was told that the Corporation Counsel handled the
lease and lease rent negotiations and based on their study of
commercial space for rent, the $11, 000 rent is reasonable for the
location, floor space and security.
FC REPORT NO, 428
ADOPTED: 40 4 1991
FC-428 Page 2 August 27, 1991
Your Committee was further informed that the present owners have
made improvements to the building based on the multi-year lease with
the County. At this point, Committee members questioned the
appropriateness and legality of the Prosecuting Attorney taking
action to improve and enter into a commitment before receiving
Council authorization to do so .
Section 10-11, Hawaii County Code, states "any contract, lease or
other obligation requiring the 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. "
Your Committee on Finance concurs with the intent of Resolution
No . 366-91 and recommends its adoption.
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HELENE H. HALE, CHAIRWOMAN
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ROBER H. MAKUAKANE, VICE CHR. BRIAN . D LIMA, MEMBE'
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HARRY S. UDDLE, MEMBER ''SPENCER K. SCHUTTE, MEMBER
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