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HomeMy WebLinkAboutREP GOEAC 139 2026-06-02 2024-2026REPORT OF THE COMMITTEE ON GOVERNMENTAL OPERATIONS AND EXTERNAL AFFAIRS DATE: June 2, 2026 PLACE: Council Chambers Hilo, Hawaii TIME: 9:00 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Re: Comm. No. 915/Bill No. 165 Your Committee on Governmental Operations and External Affairs, to which was referred Bill No. 165, reports as follows: Bill No. 165, transmitted by Council Member Ashley L. Kierkiewicz, via Communication No. 915, dated May 14, 2026, initiates an amendment to Article X of the Charter of the County of Hawaii (2024 Edition), relating to Public Access, Open Space, and Natural Resources Preservation (PONC). Bill 165 increases the annual allocation dedicated to the Public Access, Open Space, and Natural Resources Preservation Maintenance Fund from 0.25 percent to 0.5 percent of real property tax revenue; removes the accrual limit for the fund; provides that all expenses from the fund must align with the fund's purpose; and authorizes the awarding of grants from the fund. Property Manager Shannon Arquitola and Program Manager Ben Schapiro were present in the Council Chambers to answer questions. Member Kierkiewicz began by explaining that the rationale for this bill came after convening the "PONC in Practice" Summit. She said that one of the frustrations voiced was a lack of clarity on how to move forward on things within the PONC process. Member Kierkiewicz stated that where there is so much detail within the Charter it can hinder progress and the widespread agreement was that those details belong in the County Code instead. She explained that this bill increases the funding available for stewardship and that they want to see this program continue to be successful and as more properties are acquired there will need to be more funds available to maintain them. Additionally, she explained the removal of the $3 million cap on funding and noted that any funds not spent will remain in that fund instead of returning to the general fund so that those funds can accrue. She acknowledged that the timing for this legislation to advance and make it onto the ballot is very tight and explained that the intention is to simultaneously work on a code change ordinance that would move the language being stricken from the Charter into the County Code. She said that she needs time to complete this work, and her intention is to submit a code change bill by July 6 to discuss at the July 22nd meeting, which will be the final reading of the Charter amendment bill that is currently before them. Committee Member Rebecca Villegas said that she has been involved with many aspects of the PONC program and has seen vast improvements already in the process and stated that everything within the Charter is cumbersome, and moving this language to the Code would make sense. She stated that she has concerns about the timing of doing both of these changes concurrently and that doing it right is more important than leaving us vulnerable. GOEAC Report No. 139 GOEAC-139 Page 2 June 2, 2026 Committee Member Holeka Goro Inaba agreed with the purpose of the bill and moving the language. He stated that he was in support of the bill but wants to see the companion bill addressing the code changes move forward concurrently. Committee Member Heather L. Kimball said that this section of the Charter has always stood out based on its level of detail. She asked the Finance Deputy Director Malia Kekai how much of the funds have been rolled over in recent years. Ms. Kekai said that at the quarter percent rate there is currently $1,396,750 budgeted for next fiscal year and that there is currently $3 million in the fund balance. She said that the historical expenditure is about $500,000, but that their office does forecast that number will increase in the future. Member Kimball asked if the Finance Department was supportive of the increase and the removal of the cap. Ms. Kekai said that they are generally supportive of the increase knowing that they are acquiring more properties. She also suggested a proposal in which they could pull additional funds from the other fund or that another way to have flexibility would be to take those funds not needed for mandatory maintenance to address other shortfalls. Member Kimball agreed with additional considerations for flexibility in funding allocation. Member Kimball asked Mr. Schapiro to share his feedback on these proposed changes. Mr. Schapiro echoed what Ms. Kekai shared and also asked for the Council to consider ways to create a neutral budget and balance the spending across both the acquisition and maintenance funding. Additionally, he stated that in regard to historical spending, what they really need is more stewards and partners within the community. Member Kimball asked Member Kierkiewicz what her thoughts are on the requests for flexibility within both accounts. Committee Member Michelle M. Galimba expressed support for revenue neutrality and expressed hesitation around advancing the proposal for the increase to a half percent for the maintenance fund. She was in favor of the move of the language from the Charter to the Code and recommended waiting on increasing the maintenance fund and instead suggested that providing the flexibility and encouragement of increased stewardship before increasing the funding. Committee Member James E. Hustace said that he isn't as familiar with the maintenance side of the PONC program. He said that at some point there won't be as many properties to acquire and that could help create a flip in the scale over time to balance the funding between the acquisition and maintenance fund. Member Kierkiewicz said that she would be working on the feedback she received as well as the concurrent code changes. Committee Chair Jenn Kagiwada asked for clarification from Ms. Kekai regarding the way the currently proposed amendment reads it appears that these funds could be used for County expenses at the discretion of the Finance Director and not be allocated for nonprofits to use. Ms. Kekai said that Corporation Counsel would have to clarify that. She said that for the properties that don't have stewards, yes, the County will be using those funds to provide maintenance. She said that the historical spending of $500,000 has mainly been grants to nonprofits, but the increase in funding will allow the County to do more maintenance of the twenty parcels that do not have stewards. GOEAC Report No. 139 GOEAC-139 Page 3 May 19, 2026 Chair Kagiwada said that acquiring PONC properties with no stewardship behind them can be problematic due to the lack of staff and resources for the County to maintain them. Ms. Kekai agreed and shared that the position of Program Manager is actually funded by the acquisition fund and suggested cleaning up that language to allow the staff funding to come from the maintenance fund as that will be where more staff will be required as the program grows. Chair Kagiwada stated that she would prefer to see the funds go to nonprofit and stewardship organizations rather than towards the County maintaining more properties. Chair Kagiwada requested that the word "conservation" be added when referencing easements for clarity and consistency. Your Committee on Governmental Operations and External Affairs is in accord with the purpose and intent of Bill No. 165, and recommends its passage on first reading. slm AYES NOES ABS EX GALIMBA X HUSTACE X INABA X KAGIWADA X KANEALI`I-KLEINFELDER X KIERKIEWICZ X KIM13ALL X ONISHI X VILLEGAS X Respectfully submitted, COMMITTEE ON GOVERNMENTAL OPERATIONS AND EXTERNAL AFFAIRS JE9N KA ' ADA, CHAIR GOEAC REPORT NO.: 139 ADOPTED: JUN 1 7 2026