HomeMy WebLinkAboutREP FC 251 04/19/2004 2002-2004REPORT OF THE
COMMITTEE ON FINANCE
DATE: April I9, 2004 Re: Comm. No. 522/Bill No. 238;
PLACE: Cow~cil Chambers Comm. 522.1
TIME: 9:06 a.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 238, reports as follows:
Bill No. 238, transmitted by Mayor Harry Kim via Communication No. 522, dated March 1.
2004, submits for consideration the proposed Capital Budget for Fiscal Year 2004-05, and the
Six-Year Capital Improvements Program for the fiscal years FY2004-OS to FY2009-1Q,
consisting of 39 projects totaling $46,839,000, of which $250,000 is Federal Grants Receivable
and $46,589,000 is County-financed through State Revolving Fund loans, bonds, or other
sources (detailed in Table 1, Figure 1).
Attached to the transmittal are Tables 1-9 consisting of a list of projects, existing vs. new vs.
replacement facilities, selection criteria, functional classification, proposed funding sources,
lapse report, geographic distribution of projects and fair share contributions (to be provided in
the May 2004 budget submittal).
As shown on "fable 2, of the 39 Capital Budget projects, 24 are new facilities or miscellaneous
improvements ($31.13M), 4 arc replacement of existing facilities ($6.57M), and 11 are
improvements to existing facilities ($8.89M). Approximately 55% of the capital budget is
devoted to public health and safety projects, followed by culturehecreation (17%), general
government facilities (17%), and transportation (11%).
The largest capital projects include: replacement of large capacity cesspools ($S.SSM);
Americans with Disability Act (A.U.A.) compliant facilities improvements ($5.25M),
the new West Hawaii County Building ($S.OM), Lako Street Extension ($S.OM), and the
Regional Transfer/Sort Station ($3.449M).
Six of the 39 projects are pending projects that require reappropriation. Less any reappropriated
amounts, the net increase of FY2004-OS capital projects is approximately $42.9M.
Those projects acknowledged to impact future operating budgets by adding new staff, incurring
new utility/maintenance expenses or requiring new equipment or furnishings include the
Department of Environmental Management's Equipment Maintenance Facility, Ocean View
Transfer Station, Regional Sort Station and Kona Scrap Metal Salvage Facility, as well as Kona
Senior Center (Parks & Recreation) and Naalehu Fire Station (Fire Department). The West
Hawaii County Building may result in net savings by consolidating operations. The new Puna
Police Station and I lonokaa Fire Station will replace existing facilities, thereby not requiring
additional staff.
I=iawai'i County is an Equal Opport~urity Provider and Fn7ployer FC Report 251
Mayor Kim's Capital Budget transmittal stated that the administration's revised CIP submittal in
May 2004 "will report on the fair share contributions pursuant to §2-162, Hawaii County Code"
and will "list fair share contributions by applicant, rezoning ordinance number, nature and
amount of the assessment, and status of collection." The procedure being developed by the
Planning Department -allocating the fair share assessments to a specific project through the CIP
process - is intended to ensure "that the fair share payments do not languish in the accounts. are
spent for appropriate projects in the vicinity of the contributing project, and are optimized as
matching funds to leverage state or federal grants."
Major capital program projects listed for the next six years, subject to ongoing evaluation.
include:
• ADA compliance for parks facilities ....................... ..... $36.OM
• Police 800 (or 700) Mhz communication system ......... ..... $21.OM
• Alii Highway (County matching funds) ................... ...... $15.8M
• Closure of the South Hilo Landfill .......................... ...... $12.65M
• Wcst Hawaii County Building ............................... ..... $12.OM
• Regional Sort Station ......................................... ...... $11.SM
The geographic distribution of FY2004-OS capital projects among Council districts is shown
below:
Kohdla
9 Nonokaa
Kawaihae' Waim
Wdik010d
~ (~
~
Kailua
Kona
ry
l
Capt.
Conk `r.
,
r. ,,..-
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N
District I: $ .45M
District 2: $ 5.35M
District 3: $ A6M
District 4: $ S.OOM
District 5: $ .OIM
District 6: $ 1.48M
District 7: $ S.SSM
6 ~/
' Pahala /
~~
r
H~JVE jNaatQhu
~~SOUth Point
5~ ~ ~~ District S: $ 9.RSM
/'~ District 9: $ LSSM
NOTE: Appro~immch
$13.51 M arc for projects
lurtlal throughout the
island and haoc van ing
bencGts to each Council
District.
The following recommendations were brought forward for consideration by the administration in
Draft 2 of the Capital Improvement Qudget for FY2004-05:
• Council Member Leningrad Elarionoff requested an appropriation of $250.000 to conduct
a study for a truck runaway ramp on the Waikoloa Road.
• Council Member ,Ioe Reynolds requested the appropriation for Captain Cook Police
Station 'Improvements' be directed to `Acquisition and Planning.'
• Council Member Michael Tulang reyuested excluding all funding associated with the
Regional Transfer Station (Sort Station) until the County has claritied its direction of
solid waste reduction technology - $3,449,000.
• Council Member Cary Safarik requested a detailed explanation as to why the Police
Department is moving from an 800-Mhz conversion to a 700-Mhz. conversion.
Your committee originally reviewed the Capital Budget in conjunction with departmental
program reviews on March 11, March 12, and March 15. Pursuant to Section 10-4, Hawaii
County Charter, the Council also conducted public hearings on the proposed PY2004-OS
Operating and Capital Budgets in Hilo on March 15, 2004 and Kona on March 17, 200x.
Upon review of the Mayor's amended budget submittal in May 2004, your committee may
propose amendments as necessary.
A motion to approve was made and seconded, followed by a vote of the eight members in
attendance. The final vote, as reflected below, prompted the Committee Chair to forward Bill
No. 238 to the full Council with a negative recommendation.
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Respectfully submitted:
ADOPTED:
OFFICE INFORMATION ONLY
Meeting: May 19, 2004 - Council Meeting (36th Session)
Action: Amended Bill 238 to Draft 3 and passed First Reading
FC Report 251 transmitted Bill 238 with a "negative
recommendation" due to a vote of 4 ayes, 4 noes, & 1 excused.
Re: C-522/BILL 238/FC-251