HomeMy WebLinkAboutREP FC 328 01/22/1991 REPORT OF THE
COMMITTEE ON FINANCE
Date: January 22, 1991 Re: 'Comm. 2232
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 . 278-91, reports as follows :
Resolution 278-91 would authorize the Administration to budget
sufficient funds in future years to cover the obligations of the
County under a lease agreement for approximately 1, 078 square feet
of office space in West Hawaii . The 1, 078 square feet is for two
office spaces consisting of 510 square feet and 568 square feet.
Pursuant to Section 10-11 of the County Charter, any lease, contract
or other obligation requiring payment of funds from the
appropriations of a later fiscal year or more than one fiscal year
be approved by resolution.
The County currently leases 1,430 square feet of space at the First
Federal building, however, this space is located on the second floor
with no provision for handicap accessibility. If the resolution is
approved, the County plans to sublease the First Federal space.
The Administration plans to lease the space from Case & Lynch at the
Hanama Place building in Kailua-Kona for the Deputy Managing
Director and his secretary. Accessibility by the handicapped is
already in place.
Your Committee is further aware that the 510 square foot space will
be for 3 years commencing February 1, 1991, with a two-year renewal
option and that the 568 square feet area would be for 3 years
commencing February 1, 1991, with no renewal option.
Your Committee was provided information which indicated the costs of
the First Federal Building lease and the proposed Hanama Place lease.
First Federal
1,430 sq. ft. @ $1. 75 (anticipated) = $2, 502 . 50
1,430 sq. ft . @ $ . 65 c. a.m. = 929 . 50
TOTAL $3,432 . 00/mo .
Hanama Place
Area 1
510 sq. ft . @ $2 . 00 base rent = $1, 020 . 00
510 sq. ft. @ $ .45 c. a.m. = 229 . 50
SUBTOTAL $1,249 . 50
FC REPORT NO, 328
ADOPTED: FEB 6 1991
FC- 328 Page 2 January 21, 1991
Area 2
568 sq. ft . @ $1. 75 base rent $ 994 . 00
568 sq. ft . @ $ .45 c. a .m. 255 . 60
$1,249 . 60
First Federal
1,430 sq. ft. - total cost $3,432 . 00
Hanama Place
1, 078 sq. ft. - total cost 2,499 . 10
NET DIFFERENCE $ 932 . 90/mo.
Your Committee also understood that the Kona Gym was to include
space for office use. The Committee inquired as to when the gym
would be completed and the office spaces ready. The administrative
response was that the completion date was not for certain, however,
that it would probably not be within the term of the lease.
The Administration also explained that Case & Lynch has the space
available because they have not yet proceeded with their expansion
plans . It was noted that area 2 did not provide for any option
because it is anticipated that Case & Lynch may need the space for
their own use.
Your Committee was also made aware that the First Federal space is
currently being renegotiated. Corporation Counsel informed the
Committee that the negotiation is being arbitrated. The only issue
is the rent; the County is obligated for the next 5 years .
A conference room will be provided in one of the rooms for agencies
needing a meeting room that is accessible by the handicapped.
The Director of Finance explained that past practice has been to
obtain the permission to enter into long-term leases and then to
negotiate the contract . The Committee was assured that whatever
information is available will accompany any future requests for
long-term obligation authorizations .
Your Committee on Finance concurs with the intent and purpose of
Resolution 278-91 an. recommends its adoption.
Of
HELENE H. HALE, CHAIRW
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