REP PWIRC 039 03/21/2006 2004-2006

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REPORT OF THE COMMITTEE ON PUBLIC WORKS AND INTERGOVERNMENTAL RELATIONS DATE: Mazch 21, 2006 RE: Comm. No. 739/Res. No. 279-06 PLACE: Sheraton Keauhou Bay Resort and Spa TIME; 9:00 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Public Works and Intergovernmental Relations, to which was referred Resolution No. 279-06, reports as follows: Resolution No. 279-06, transmitted by Finance Director William Takaba via Communication No. 739, dated March 3, 2006, authorizes the granting of an easement for utility purposes over a portion of Lot 2 (Kula`imano Heights, Unit VIII, Increment 2), being Tax Map Key`(3)2-8- 007:073, situate at Kumula Street, Pepe'ekeo, District of South Hilo, County and State of Hawaii, to Hawaiian Telecom, Ina (perpetual easement for a digital line equipment site). An independent appraiser has determined that the fair mazket value of the site with an area of 908 squaze feet is $1,500.00. Article XIII, § 13-12 of the Hawaii County Charter provides that the Council may accept gifts which include the dedication of land on behalf on behalf of the County of Hawaii. Gordon Yadao, Hawaiian Telecom, Inc. Section Manager -Engineering, and Sandra Padaken, consultant for Hawaiian Telecom, Inc., provided information to your Committee members. Hawaiian Telecom, Inc. is requesting the easement in order to install digital equipment that will allow the utility company to improve its service to the public by reducing the existing cable loop length for its fiber optic system. If granted, this easement will be one of three granted to the utility company in this county. Committee member Gary 5afazik suggested that Hawaiian Telecom team up with Sandwich Isle Communications, and utilize Sandwich Isle's existing easement. Sandwich Isles Communication is a private enterprise developed specifically to service only Hawaiian Homes properties. Hawaiian Telecom services the general public. Both companies maintain separate and distinct fiber optic systems. Mr. Safazik suggested that Hawaiian Telecom should team up with Sandwich Isles Communications. Committee member Bob Jacobson contrasted the granting of this easement with the proposed sale of property fronting the Oceanview Inn in Kailua-Kona. Gerald Takase, Assistant Corporation Counsel explained that an easement is appropriate, as the utility company serves a general public purpose, there is limited foot traffiq the utility company will enclose the azea if requested, and the liability risk is minimal. Oceanview Inn is a private enterprise exposed to high liability given the nature of the business, the high volume of foot traffic and the genera] location.