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Home My WebLink AboutREP PCPLUED 015 2026-10-06 2024-2026 Hawaii County Council-51 October 21,2026 Res. 715-26: AUTHORIZES THE PAYMENT OF FUNDS OF LATER FISCAL YEARS TO ENTER INTO A MULTI-YEAR LEASE AGREEMENT FOR TWO MULTIFUNCTION COPY MACHINES TO BE USED BY THE OFFICE OF THE CORPORATION COUNSEL Authorizes the Mayor to enter into a five-year lease agreement with an approximate annual cost of$9,600, to be used in the depaituient's Hilo and Kona offices. Reference: Comm. 1124 Intr. by: Council Member Kaneali`i-Kleinfelder(B/R) Waived: FC ADOPTED: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, and Acting Chair Onishi—7. Noes: None. Absent: , Council Members Inaba and Villegas—2. Excused: None. BILLS FOR ORDINANCES (FIRST READING) Bill 147: AMENDS CHAPTER 2 AND CHAPTER 25 OF THE HAWAI`I COUNTY (Draft 2) CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO TRANSIENT ACCOMMODATIONS Establishes operational standards and use regulations for hosted and un-hosted transient vacation rentals (TVRs); allows hosted TVRs as a permitted use in the single-family residential, double-family residential, multiple-family residential, residential-commercial mixed use, resort-hotel, neighborhood commercial, general commercial, village commercial, special Downtown Hilo commercial zoning districts; allows hosted TVRs as a permitted use in certain agricultural zoning districts under certain conditions; allows un-hosted TVRs as a permitted use in the resort-hotel, general commercial, village commercial, and special Downtown Hilo commercial zoning districts; allows un-hosted TVRs in certain areas of the neighborhood commercial or residential zoning districts under certain conditions. Reference: Comm. 806.15 Intr. by: Council Member Kimball Negative: PCPLUED-15 (Due to a vote of 4-ayes, 5-noes) (Vote on Bill 147, Draft 2, is on the next page.) Page 7 1 REPORT OF THE POLICY COMMITTEE ON PLANNING, LAND USE,AND ECONOMIC DEVELOPMENT DATE: October 6, 2026 Re: Comm.No. 806/Bill No. 147 PLACE: Council Chambers Hilo, Hawai`i TIME: 10:30 a.m. Council Chair and Members Hawai`i County Council Hilo,Hawai`i 96720 Your Policy Committee on Planning,Land Use, and Development,to which was referred Bill No. 147,reports as follows: Bill No. 147,transmitted by Council Member Heather L. Kimball via Communication No. 806, dated March 19, 2026, amends Chapter 2 and Chapter 25 of the Hawai`i County Code 1983 (2016 Edition, as amended), relating to transient accommodations. The bill establishes operational standards and use regulations for transient vacation rentals, which include hosted bed and breakfasts (B&Bs)and un-hosted short-term vacation rentals (STVRs); allows B&Bs as a permitted use in the single-family residential zoning district; allows B&Bs as a permitted use in areas within the residential agricultural, family agricultural, and agricultural zoning districts that are also classified as State land use urban or rural; allows STVRs as a permitted use in the entire multiple-family residential district and in certain coastal areas adjacent to General Plan-designated Resort or Resort Node areas in other residential zoning districts; allows STVRs as a permitted use in the Downtown Hilo Commercial zoning district; and makes various conforming housekeeping amendments. Planning,Land Use, and Economic Development Meeting of April 7,2026. Ms. Kimball explained that the bill aligns County regulations with State law and current Planning.Department practices while reducing permitting requirements for hosted rentals. She clarified that existing permits would remain valid and discussed registration requirements, property tax implications, and a potential compliance grace period. Committee Members raised questions about annual registration requirements for existing permit holders. Bill 147 was referred to the Windward Planning Commission and Planning Director for review. On July 23, 2026, Managing Director William V. Brilhante,Jr., via Communication No. 806.2, transmitted a favorable recommendation from the Windward Planning Commission, including 15 proposed amendments. PCPLUED Report No. 15 P' PCPLUED-15 Page 2 October 6,2026 1 Planning,Land Use, and Economic Development Meeting of September 1,2026. Planning Director Jeffrey Darrow was present in the Hilo Chambers. Ms. Kimball and Mr. Darrow emphasized that the bill would clarify existing regulations, simplify permitting, and help operators achieve compliance. Committee Members raised concerns regarding rental classifications, enforcement procedures, impacts on infrastructure, and proposed zoning changes. Bill 147 was postponed to September 15, 2026. Planning,Land Use, and Economic Development Meeting of September 15,2026. Planning Director Jeffrey Darrow was present in the Hilo Chambers. Mr. Darrow reiterated the Planning Department's support,noting that the bill would eliminate the need for thousands of individual use permits. Committee Members discussed owner- occupancy verification, enforcement, and distinctions between lodging classifications. Ms. Kimball proposed three amendments addressing technical and land-use requirements, grandfathering provisions for rentals of 31 to 179 days, and the removal of Neighborhood Commercial zoning from permitted STVR areas. Following discussion, Ms. Kimball withdrew the amendments to allow additional review. Bill 147 was postponed to October 6,2026. Planning,Land Use, and Economic Development Meeting of October 6,2026. Ms. Kimball emphasized the importance of advancing the bill to align with the registration process that began September 1, 2026, and to reduce permitting requirements for hosted rentals. Ms. Kimball proposed an amendment via Communication 806.14,which incorporated previously discussed housekeeping and zoning changes. Committee Members discussed terminology,the treatment of existing B&Bs, and restrictions on STVRs in Multi-Family Residential districts. Bill 147 was amended with five "ayes," Chair Kierkiewicz and Committee Members Inaba, Kaneali`i-Kleinfelder, and Onishi voting in opposition. Committee Member James E. Hustace proposed an amendment via Communication 806.11, addressing enforcement procedures, including a rebuttable presumption of rental activity and warnings before administrative fines. Following discussion, he withdrew the amendment for further refinement. i PCPLUED Report No. 15 F PCPLUED-15 Page 3 October 6,2026 Your Policy Committee on Planning,Land Use, and Economic Development is not in accord with the purpose and intent of Bill No. 147, as amended to Draft 2, and forwards it to the Council with a negative recommendation. kj AYES NOES ABS EX Respectfully submitted, GALIMBA x POLICY COMMITTEE ON HUSTACE x PLANNING, LAND USE, INABA x A ECONOMI DEVELOPMENT KAGIWADA X KANEALI`I-KLEINFELDER X KIERKIEWICZ X _ KIMBALL x L L. KIERKIEWICZ, CHAIR ONISHI X PCPLUED REPORT NO.: 15 VILLEGAS x ADOPTED: