HomeMy WebLinkAboutBIL 165 Draft 02 2024-2026AN ORDINANCE TO INITIATE AN AMENDMENT TO ARTICLE X OF THE CHARTER OF THE COUNTY OF HAWAI‘I (2024 EDITION), RELATING TO PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI‘I:
SECTION 1. Findings and purpose. The Council finds that, since its establishment in 2012, the public access, open space, and natural resources preservation maintenance fund has played
a vital role in the County’s public land preservation program, commonly called the “PONC program”. Specifically, the fund has supported and bolstered the ability of stewardship organizations
and community volunteers to protect and maintain lands that have been acquired for the public’s benefit through the PONC program.
The purpose of this ordinance is to improve the long-term sustainability and effectiveness of the maintenance fund and the PONC program as a whole. In order to ensure sufficient resources
are available for current and future stewardship responsibilities and opportunities, this ordinance removes the $3 million accrual limit and allows for additional appropriations to
the maintenance fund beyond the dedicated 0.25% of property tax revenue. The Council finds that providing greater funding flexibility will improve the County’s ability to maintain and
strengthen the PONC program.
This ordinance also proposes to remove the itemized list of eligible expenses and non-profit grant award procedures from the Charter, in order to relocate them into the County Code.
The Council finds that having a high degree of specificity in the Charter results in a more rigid and narrow administration of funding and program guidelines, which can hamper program
effectiveness. In June of 2025, the Council formed an ad hoc committee to investigate the PONC program. One of the common themes identified in the ad hoc committee’s final report was
the need for the stewardship grant program, which is funded by the maintenance fund, to be updated and clarified. The Council finds that outlining allowable uses of the maintenance
fund and other important details of the program in the County Code provides more flexibility to fulfill the original purpose of the fund, making it easier to amend and adapt program
requirements and procedures as community needs, environmental conditions, and best practices change over time.
Accordingly, the Council sees fit to propose the Charter amendment contained in this ordinance to the voters on the 2026 general election ballot.
SECTION 2. Article X, section 10-16, of the Charter of the County of Hawai‘i (2024 Edition) is amended to read as follows:
“Section 10-16. Public Access, Open Space, and Natural Resources Preservation Maintenance Fund.
[(a) The purpose of the public access, open space, and natural resources preservation maintenance fund is to accrue and use moneys for maintenance of lands and easements acquired by
the public access, open space, and natural resources preservation fund. The maintenance fund will ensure that money is dedicated to preserve the land, promote public safety, and maintain
a healthy stewardship.
(b) For the purpose of this section, “maintenance” means to preserve and conserve lands and easements acquired by the public access, open space, and natural resources preservation fund
and keep them in good repair for public safety.]
[(c)] (a) There is established a special fund known as the public access, open space, and natural resources preservation maintenance fund [(hereinafter “maintenance fund”). The maintenance
fund shall be administered and managed by the department of finance.], into which shall be deposited:
(1) One-quarter of one percent of all real property tax revenue, including interest and penalties;
(2) All proceeds from the sale of general obligation bonds authorized and issued for the purposes of this section; and
(3) Other appropriations made by the council to the fund.
(b) The purpose of the fund is to support and promote the stewardship, preservation, restoration, public safety, and maintenance of lands, interests in lands, and easements acquired
through the public access, open space, and natural resources preservation fund.
(c) The director of finance shall manage the administration and use of the maintenance fund in accordance with the provisions of this section and as may be further provided by ordinance.
[(d) Deposits due to the maintenance fund.
(1) In adopting each fiscal year’s operating budget, the council shall appropriate one-quarter of one per cent of all real property tax revenue (including interest and penalties) to
the maintenance fund. Deposits to the maintenance fund shall occur on a quarterly basis at a minimum.
(2) Additional revenue deposited in the maintenance fund may consist of grants and private contributions intended for the purpose of this section, proceeds from the sale of general
obligation bonds authorized and issued for the purpose of this section, council appropriations for the purpose of this section, and any other source of revenue.]
[(e)] (d) Accounting for the maintenance fund; interest bearing accounts; reporting by the department of finance.
(1) All moneys in the maintenance fund shall be deposited in interest bearing accounts until needed. Any interest shall accrue to the maintenance fund.
(2) Moneys in the maintenance fund shall be identified separately for:
(A) Funding received from the real property tax revenue, including interest and penalties; and
(B) Funding received from grants and private contributions, and any other source of revenue, and its interest earned, which[:
i. Shall] shall be itemized and earmarked for specific projects for the lands or easements.
[ii. Shall not be subjected to the maximum accrual of funds limit provided in subsection (f).]
(3) Financial statements shall be posted each month on the public access, open space, and natural resources preservation fund web site.
(e) All expenses, grant awards, and other uses of the maintenance fund must align with the purpose of the fund, as may be further described, specified or allowed by ordinance.
(f) The director of finance may award grants from the maintenance fund to 501(c)(3) non-profit organizations, subject to the approval of the council by resolution.
[(f) Maximum accrual limit in maintenance fund; exemption to funding.
(1) Only moneys derived from real property tax revenue, its interest, and its penalties shall be included in the computation of the maximum accrual limit for the maintenance fund. All
other moneys specifically directed to the maintenance fund shall be held separately from those moneys in the maintenance fund that originated from real property tax revenues (including
interest and penalties), and shall not be subjected to the maximum accrual limit.
(2) The maximum accrual limit shall not exceed $3,000,000.
(3) At the end of any fiscal year in which the maintenance fund holds unencumbered funds derived from real property tax revenue (including interest and penalties) of at least $3,000,000,
any unencumbered amount in excess of that $3,000,000 shall be permanently transferred to the general fund balance.
(4) Exemption to funding. If the maintenance fund holds $3,000,000 in unencumbered funds derived from real property tax revenue (including interest and penalties), then the council
and the executive branch do not need to add more money to the maintenance fund until the next budget cycle. This exemption shall not release the administration from its mandatory duty
to maintain and preserve lands and easements acquired by the public access, open space, and natural resources preservation fund in good repair for public safety each fiscal year.
(g) The maintenance fund shall be used solely for public safety maintenance and preservation of those lands and easements acquired by the public access, open space, and natural resources
preservation fund, and shall be used only for expenditures directly related to its purpose. Expenditures by the administration and/or stewardship grants presumed to be directly related
are as follows:
(1) Reparation (fixing, mending, repair work, and servicing);
(2) Preservation (damage control, salvaging, safekeeping, and safeguarding);
(3) Conservation of soil, forests, shorelines, native wildlife, streams, wetlands, watershed, and floodways;
(4) Restoration (replacement, reclamation, reconditioning, and remediation);
(5) Wildfire and fire prevention;
(6) Repair of existing buildings to meet the current code requirements, if the building is deemed reasonable to save;
(7) Replacing signs to meet the current code requirements;
(8) Installation, repair, or replacement fencing and gate or access mechanisms;
(9) Installation or repair of cattle guards;
(10) Building, renting, leasing, installing, and maintenance of toilet facilities;
(11) Building and installation of small sheds or structures for the storage of maintenance equipment;
(12) Building, installation and maintenance of structures to provide protection from the elements;
(13) Creation of trails or paths to access land for public safety, maintenance, and preservation;
(14) Mitigation of flooding problems including repair or restoration of existing culverts, drainage features, or other similar flood control mitigation;
(15) Archeological survey and buffering of Native Hawaiian historical or cultural sites after appropriate consultation with Native Hawaiian descendants and cultural practitioners;
(16) Biological studies for the protection of Native Hawaiian species of plants and animals; or
(17) Mitigation of Americans with Disabilities Act compliance issues that may arise during the course of public safety maintenance and preservation.
(h) Stewardship Grants. Moneys may also be used to provide grants-in-aid for projects, which uses are reflected in subsection (g).
(1) An award of a stewardship grant shall be by council resolution. Stewardship grants may be awarded only until moneys in the maintenance fund are extinguished. Grants shall be awarded
on the basis of ability of the stewardship organization to complete the project on time and within cost estimates.
(2) Only 501(c)3 nonprofits or an organization that operates under the umbrella of a 501(c)3 nonprofit, and that can complete a project for the good of the community, shall be considered
for a stewardship grant.
(3) Public notice by the department of finance of the availability of the stewardship grants shall be placed in two newspapers of general circulation, as well as electronic media accessible
by internet, by August 1 of each fiscal year provided money is available. These advertisements shall be paid for from the maintenance fund.
(4) To apply for a stewardship grant, a stewardship organization shall provide to the department of finance and the public access, open space, and natural resources preservation commission
the following:
(A) An application form obtained from the department of finance, which is completed for each specific purpose or project;
(B) A copy of its letter of determination from the Internal Revenue Service confirming its 501(c)3 status or the 501(c)3 status of the umbrella organization;
(C) A copy of its bylaws and mission statement;
(D) A detailed business plan that includes the description of the specific project, time frames for project goals, costs, and activities to accomplish the stated purpose, and any other
information requested by the department of finance; and
(E) A signed agreement to file a written report to the department of finance one year or less after receipt of funds or thirty days following project completion, which shall include
details as to what has been accomplished
on the project, actual costs, expense receipts, and any other information requested by the department of finance. The completed report shall be provided to the public access, open space,
and natural resources preservation commission and the council.
(5) Unexpended funds shall be returned to the maintenance fund within thirty days of submitting a final report.
(6) No officer, board member, or employee of the 501(c)3 nonprofit organization or the organization that operates under the umbrella of a 501(c)3 nonprofit organization shall receive
a salary or any portion of a salary from this fund for performing their general duties or functions as an officer, board member or employee; however, compensation for specific duties
such as labor, educational workshops and maintenance work may be paid to an officer, board member or employee if those duties have been specifically identified and officially approved
in the detailed business plan submitted as part of the stewardship grant proposal. The 501(c)3 nonprofit shall sign an agreement so stating these conditions and submit it with the application.
(7) Mismanagement of moneys awarded for a stewardship grant shall permanently bar the 501(c)3 nonprofit organization and the organization that operates under the umbrella of a 501(c)3
nonprofit organization from receiving future grants from the maintenance fund.
(8) The director of the department of finance shall provide a short, written evaluation of the proposed project to the council and include a recommendation about the applicant’s ability
to complete the project according to the project plan.]”
SECTION 3. Charter material to be repealed is bracketed and stricken. New charter material is underscored. When revising, compiling, or printing these charter provisions for inclusion
in the Charter of the County of Hawai‘i, the revisor need not include the brackets, bracketed and stricken material, and underscoring.
SECTION 4. Severability. If any provision of this ordinance, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions
or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable.
SECTION 5. Upon adoption of this ordinance, this council, by appropriate resolution, shall provide that this amendment be submitted to the electorate of the County for approval in the
2026 general election.
SECTION 6. The charter amendment proposed in this ordinance shall take effect upon its approval by a majority of voters voting on this legislation in the 2026 general election, as duly
certified.
INTRODUCED BY:
_______________________________________
ASHLEY KIERKIEWICZ
Council Member
_______________, Hawai‘i
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Date of 3rd Reading:
Effective Date: