HomeMy WebLinkAboutREP FC 308 01/08/1991 REPORT OF THE
COMMITTEE ON FINANCE
Date: January 8, 1991
Place: Councilroom
Time: 11 : 00 a .m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Resolution
�No . 263-91, reports as follows :
The purpose of Resolution No . 263-91 is to request the Council ' s
favorable consideration and approval of the agreement document dated
November 21, 1990 and executed by Kamehameha Investment Corporation
(KIC) and the County of Hawaii in which parties undertake to
construct and operate a fire-rescue station in the Keauhou Resort
Community area.
It also refers to Resolution 225-90, passed by the Council on
September 5, 1990, which urges the Administration to consider KIC' s
proposal to construct the fire-rescue station facility and then
transferring it to the County of Hawaii for operational
re,;ponsibilities for a period of at least 20 years .
Refe.cence is made to Section 10-11 of the Hawaii. County Charter
which states that all contracts requiring payment of funds from
appropriations of more than one fiscal year must he approved by the
County Council .
As information, the copy of the agreement between KIC and the County
of Hawaii is attached indicating that KIC conveyed . 693 acre of land
in Keauhou to the County of Hawaii for the sole purpose of
establishing a fire-rescue facility in the Keauhou Resort Community
area . The land conveyed by deed dated September 7, 1983 , stipulated
that a fire-rescue facility was to be constructed within 15 years
from deed date. However, the County has not been able to undertake
construction of the facility due to lack of funds and KIC is now
proposing to construct the facility with private resources and then
let the County assume responsibility of staffing, equipping and
operating the station for a period of 20 years .
Some of the covenants of interest were as follows :
1. KIC to raise sufficient funds through private sources and pay
all cost and expenses associated with design, plan and permit
approval, construction and installation. If KIC is unable to raise
at least $1, 200 , 000 within 180 days following County approval of
agreement, KIC has the right to terminate the agreement .
FC REPORT NO . 308
ADOPTED: JAN 15 1991
N
FC- 308 Page 2 January 8, 1991
2 . If Keauhou Beach Hotel, Kona Lagoon Hotel or Kona Surf Hotel, as
the case may be, contributes to the building fund, their existing
hotel improvements shall be considered for deferment from any County
fire sprinkler ordinances that may be enacted for a period of
5 years from County approval of agreement .
3 . County to provide, without cost to KIC, plans and specs of the
South Kohala fire and rescue station in order to submit plans and
specs to the County Building Department within 180 days following
the County' s approval of agreement.
4 . County to grant KIC and its employees, agents, architects,
engineers, contractors, subcontractors, suppliers and materialmen a
license and right of entry to the property in connection with the
investigation, planning, design, development, construction,
installation and completion of the fire-rescue facility for so long
as KIC requires to complete project.
5 . KIC to execute a Bill of Sale in favor of the County in order to
transfer the completed facility without any warranties except for
warranties arising under the construction contract. At this time,
the license and right of entry granted shall automatically terminate.
6 . Upon acceptance, County to promptly and expeditiously equip,
furnish and staff the fire-rescue facility on a 24-hour basis, for
not less than 20 years . County is also expected to use its best
efforts to fund a 24-hour ambulance service at the new facility.
7 . KIC to provide performance bond in an amount not less than 100%
of estimated construction cost; however, KIC may also elect to
provide County other reasonable assurance, acceptable to the County,
that the construction contract will be performed and the work
completed free and clear of mechanic' s or materialmen' s liens .
Your Committee heard from the developer ' s representative that the
date of the agreement was in error and should be changed to
November 21, 1990 . This change is significant as the developer is
hopeful in getting the assessment commitments completed within six
months of the date of the agreement. During the Committee
discussion, the developer also explained the assessment rate for the
various types of units based upon a full buildout of the Keauhou
development .
}
FC- 308 Page 3 January 8, 1991
Your Committee has amended the resolution by changing reference to
the September 5, 1990 agreement date to the November 21, 1990
agreement date.
Your Committee on Finance concurs with the intent of Resolution
No . 263-91, Draft 2, and recommends its adoption. The Committee
also moved that the Council Chairman send a letter of appreciation
to Kamehameha Investment Corporation.
HELENE H. HALE, CHAIRWOMAN
ter► .
ROBERT H. MAKUAKANE, VICE CHR. BRIAN . DE LIMA, MEM: R
i
TAKA HI DOMINGO, MEMBli MER K. ' I, M ' c R
s. ea4ALLL-.... -Alga
HARRY S RUDDLE, MEMBER SPE CER K. SCHUTTE, MEMBER
LA/HAT