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HomeMy WebLinkAboutBIL 165 Draft 03 2024-2026 Hawaii County Council-45 July 23,2026 Bill 165: INITIATES AN AMENDMENT TO ARTICLE X OF THE CHARTER OF THE (Draft 2) COUNTY OF HAWAI`I (2024 EDITION), RELATING TO PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION Removes the $3 million accrual limit for the Public Access, Open Space, and Natural Resources Preservation maintenance fund;provides that all expenses from the fund must align with the fund's purpose; and authorizes the awarding of grants from the fund. Reference: Comm. 915.5 Intr. by: Council Member Kierkiewicz First Reading: June 17, 2026 Second Reading: July 8, 2026 2/3 Vote: Third of three required readings, Section 15-1(a), Hawaii County Charter AMENDED TO DRAFT 3 (see Communication Nos. 915.7 and 915.8) AND FAILED: Ayes: Council Members Hustace, Kierkiewicz, Onishi, Villegas, and Chair Inaba—5. Noes: Council Members Galimba, Kagiwada, Kaneali`i-Kleinfelder, and Kimball—4. Absent: None. Excused: None. (Note: Ms. Kagiwada voted"kanalua" then "no." Ms. Villegas voted"kanalua"then "aye.") REFERRALS FOR EXECUTIVE SESSION Comm. 957: LEGAL PROCEEDINGS CONCERNING ALAN FUKAMIZU From Deputy Corporation Counsel Demetri G. Lametti dated June 17, 2026, requesting an attorney-client confidential discussion to consult with the Council regarding the above-entitled matter. CONCURRED WITH THE RECOMMENDATION OF CORP. COUNSEL: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Page 9 • COUNTY OF HAWAI`I STATE OF HAWAI`I BILL NO. 165 Draft 3) ORDINANCE NO. AN 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 fords 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 Hawaii (2024 Edition) is amended to read as follows: "Section 10-16. Public Access, Open Space,and Natural Resources Preservation Maintenance Fund. [ > safety,and maintain a healthy stewardship. (b) For the purpose of this section, "maintenance" means to preserve and conserve lands and fund and keep them in good repair for public safety.] Re-)] 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, at least annually: (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--ef-general-ebligatien-bends-autherized-and-issued-fer-the-puTese-ef-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 2 (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. L zrcnr iz Asa vE��El�6 err + provided in subsection(f).] (3) Financial statements, including an itemized accounting of receipts and disbursements, 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. (g) The director of finance shall provide public notice at least annually of the opportunity to apply for maintenance funds. [(f) Maximum accrual limit in maintenance fund; exemption to funding. (1) Only moneys derived from real propertytax-revenue, its interest,an.l its p alte �iau+ iu� s l�lbe--included---441--the eemputation—oft _ ccrRal-limit fer th L ll b h 1dr 1y tho e,.s „ m the e e F,,nd that o ..teA 1 .a. tax« s (includi g int t d 1t' \ .l 1, 11 t b 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 F a a lr er � r.�erty ta., . e (i„cludi„a rg_inteest and pe ..lties) o f 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) � t t d ,. I f tl,e,,, nte. ante fun h lds $3 nnn nnn : .. bored ! ! 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 Me get eycle. This exemption shall not release the administration from its mandatory duty to maintain and preserve lands and casements acquired by the public access, open space, and natural resources preservation fund in good repair for public safety each fiscal year. ( 1 Tl, t e f and shall be eA solely f u bl: aF t.. aintena«ce nd p „t:, �„AR+It++{A++t� a �./� � r � ! 7 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; ('1) Restoration (replacement, reclamation,reconditioning, and remediation); (5) Wildfire and fire prevention; 3 (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; (1 m Building,renting, leasing, installing, and maintenance of toilet facilities; (11) B ildi ,l tall..t:o a f" .,ll sheds _s+ t, s 1 fV1 t 4h + G f + 11 equipment; (12) Building, installation and maintenanceef-str-uetur-es--t-e-pfevide-pr-eteetien-fr-em-the elements; (13) Creation of trails or paths to access land for public safety, maintenance, and preservation; (11) Mitigation of flooding problems including repair or restoration of existing culverts, ; (15) Archeological survey and buffering of Native Hawaiian historical or cultural sites after--apprepriate--sensultatien--vs4th--Native—Hawaiian—deseendants—anil—sultural practitioners; (16) Biological studies for the protection of Native Hawaiian species of plants and animals; or (1 7) Mit' t' f A e it Disabilit_i Act li nee iss that �4J 11(A11V� 1JJ�� "J 0 + 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) A ,1 f to rrlsh: nt sh ll be b _- i1 of tie« Ste., rdship . nts a r grant +r avll v4 `v" w c� may be—awarde•d only-- ntil--moneys in +he m «tenonca fun.7 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 - )3 eft nd that, plete_ eet f the od o f-the eeraff unit" shall be considered for a stewardship grant. (3) Public notice by the department of finance of the availability of the stewardship + t1 ll b placed i two...ewspapers ofgener l s „letio ell_as elect.onic media accessible by internet, by August 1 of each fiscal year provided money is male Tl, advertisements shall be paid f>•-from the maintenance fund. (1) To apply for a stewardship grant, a stewardship organization shall provide to the , ent of fnance nd the—Publis--ae ess, open-space, and na+,,ral 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 4 and t t fl itte« rt-to the department of fna (E) A signed agrccmvrreso�cc-vrrrcccn-iepor��o ����� _••_�.-ee e--e year or less after receipt of funds or thirty days following project completion, which shall include deta►is t hat has been accomplished on the project, actual costs, expense receipts, and any other information requested by-the--depart-ment9f-finane . The plete.l ort shall be provided to the public access, open space, and natural resources (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 ergarAza+ therD^ atio that ^1 e ate nde tl,eumvilla od ibre 501(c)3 nonprofit organization shall receive a salary or any portion of a salafy--fr-em4hi-s-funil-fer-perferming-their-general-eluties-er-funetiens-a6-an- effieer-r4aeafel-Ffieffther-er-eRM34eYeet-hewe-v-er--reemtaensat-ien--fer-sPeeifle dt' l 1 b d t' al . rkshePs andl „ „te„a„ce_work.Y ..be paid to an officer, board member or employee if those duties have been submitted as part of the stewardship grant proposal. The 501(c)3 nonprofit shalt b ebr a nt stating these c_n dit:ons .,n.d s„bmit it witL, tl,e application. (7) Mismanagement of moneys awarded for a stewardship grant shall permanent-Pt-har-the-5,9-1-(-03-iienprefit-ertanizatien-and-the-ertanizatien. receiving future grants from the maintenance fund. (8) The director-eftl Partme rc of-fiianoe shall p ide ., short written ev luation of the--prepesed—pr-ej-eett =e—counc d—include—a re�endatio t-he-- i a complet 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. 5 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: ASHL Y ERKIEW Z Council Member ,Hawai`i Date of Introduction: Date of 1st Reading: Date of 2nd Reading: Date of 3rd Reading: Effective Date: REFERENCE Comm. 915.10 • • IIllII I O 6 LRB 26-028 D4