2009-03-09 Public Access, Open Space and Natural Resources Preservation Commission Minutes

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Page 3 — 6th paragraph - change "Community Group Alliance" to "community group alliance (OLAPA)" Page 3, 7th para raph — change "enquire" to "inquire" Page 4, 2"d & 4t paragraph — change "complied" with "compiled" Page 4, 1A paragraph - change `Olapa's to "OLAPA alliance" Page 7, 4th paragraph — change "it" to "them" and "committee" to "Commission" Vice -Chair Springer moved for approval of the minutes of February 9, 2009, regular session, as amended, seconded by Commissioner Markovich and carried unanimously by voice vote. DEPARTMENT OF FINANCE REPORT Mr. Yada introduced Ms. Deanna Sako, Deputy Director of the County Finance Department who is present to answer questions. He regretfully informed the Commission that he has accepted a position with the University of Hawaii at Hilo and will be leaving the County. He mentioned that the Council accepted the Mayor's recommendation of the PONC 2008 Annual Report at the recent Finance Committee meeting. In regards to the acquisition of the remaining Kawa parcels, Mr. Olson is not willing to accept the lower value. A letter was sent by the County to confirm the status and is still awaiting a response. Mr. Flores asked if the funds would be lost from the federal and state grant monies. Mr. Yada replied that if they don't do something by the end of this year they will lose the state funds. However if a property is found that is targeted for the same purpose as Kawa (i.e. turtle nesting) then maybe the federal funds could be transferred. Mr. Komata asked how much the difference in value for Kawa was. Mr. Yada replied that the initial agreement was for 6 million and the appraisal valuation came out to 3.6 million. Mr. Gilmartin noted that the only other potential sites that have hawksbill turtle nesting's are Punalu`u and Pohue bay in Ka`u. Mr. Yada mentioned that there's a 3,000 acre parcel next to Pohue that is currently on the market with turtle nesting sites. FINANCE DEPARTMENT TO ANSWER QUESTIONS FROM DEBBIE HECHT REGARDING THE POSSIBLE USE OF BONDS AS ADDITIONAL FUNDING SOURCE TO PURCHASE LANDS UNDER THE OPEN SPACE FUND Ms. Hecht requested that the County post the accounting report for PONC on the website to be available for the public. She noted that the monies set aside in the 2% fund can be used to pay the principal and interest payments to borrow 45 to 50 million in bonds at no added expense to the County or taxpayers. Two examples that she used were: 45 million dollars @ 5% interest — 3 million (yearly payment) & 50 million dollars @ 5 % interest — 4 million. She compared this to a home mortgage, where you pay the principal and interest. However unlike a home mortgage, bond monies are borrowed only as needed. Since land prices are down 30 %, they should look at the properties that are currently for -3-