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HomeMy WebLinkAboutREP PWPC 061 08/19/1997 1996-1998 .i.. REPORT OF THE COMMITTEE ON PUBLIC WORKS AND PARKS DATE: August 19, 1997 RE: COMM. 249/RES. 70 PLACE: Councilroom TIME: 9:05 a.m. Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Public Works and Parks, to which was referred Communication No. 249 and attached Resolution No. 7Q reports as follows: The purpose of Resolution No. 70 is to authorize the County to acquire private property to establish permanent easements for the Paukaa sewer system. 'Chic resolution authorizes the Corporation Counsel to initiate eminent domain proceedings, pursuant to Chapter 101, Hawaii Revised Statutes, to take, acquire, and condemn certain private properties necessary for permanent easement purposes and for temporary construction purposes. Resolution No. 70 also., authorizes the Corporation Counsel to negotiate settlement terms during the eminent domain proceedings. Communication No. 249 is a letter from Corporation Counsel Richard D. Wurdeman dated April 8, 1997, which transmits Resolution No. 70 for the Council's review and consideration. Past Council Action on Paukaa Sewer System Eminent Domain Proceeding May 6, 1997: Committee on Public Works and Parks (PW&PC) considers and recommends passage of Resolution No. 70 on first reading, (See PW&PC Report No. 33.) May 20, 1997: Council adopts PW&PC Report No. 33 and Resolution No. 70 on first reading. June 2, 1997: Council refers Resolution No. 70 back to PW&PC. June 17, 1997: PW&PC recommends passage of Resolution No. 70 on second and final reading. (See PW&PC Report No. 43.) July 2, 1997: Council refers Resolution No. 70 back to PW&PC. July 22, 1997. PW&PC defers consideration of Resolution No. 70. Public Works and Parks Committee Report Comm. No. 249/Resolution No. 70 Page Two Present Council Action The Public Works and Parks Committee again considered this issue during its August 19, 1997 meeting. At the meeting, Council Member Yagong shared a letter, Communication No. 249.04, from Chief Engineer Donna Fay K. Kiyosaki with Your Committee. In this letter, dated July 25, 1997, she recommends that the Council expedite passage of Resolution No. 70 in order to allow installation of the Paukaa sewer line prior to January 1998. Chief Engineer Kiyosaki explains that the State Department of Transportation plans to begin construction on a pavement resurfacing project between Paukaa and Papaikou by January 1998. If the resurfacing occurs prior to the sewer line installation, she states that the sewer project would be delayed until one year after the resurfacing is completed. Such a delay could trigger a series of events which culminate in the Federal Environmental Protection Agency seeking return of a portion of the grant money given to the County to construct this project. Council Member Yagong acknowledged the Department of Public Works' (DPW) urgent need to resolve this matter and explained that passage of Resolution No. 70 has been delayed to allow time to address concerns about the appraisal value figures proposed by the Office of the Corporation Counsel He noted that although the 19 affected Paukaa property owners believe that the appraisal values proposed by the County are too low, the costs of contesting the figures in court discourage them from exercising this option. Council Member Yagong further cited concerns about the process employed by the DPW's Wastewater Division and the Office of the Corporation Counsel to effectuate this condemnation action. As a result, he offered the following suggestions to improve the process: 1. During a sewer extension condemnation action, County hired appraisers should be required to notify affected residents that their properties will be appraised prior to initiating the appraisal process; 2. Affected property owners should be notified by the County prior to submission of a resolution to the Council which would approve initiation of a condemnation action; and 3. Appraisal reports should be given to residents who are subject to a sewer extension condemnation action prior to asking the residents to grant the County a construction right-of-entry. Public Works and Parks Cormittee Report Comm. No. 249/Resolution No. 70 Page Three With respect to the notification issue, Members of Your Committee commented that the County should make every effort to notify people and give them every opportunity to respond as a matter of fair play. However, it was also noted that the applicable state law requires that affected landowners be notified of a proposed County condemnation action only after a Council resolution is adopted and that the County needs the ability to move forward in a reasonable manner. With respect to the matter of compensation, Council Member Chung observed that the United States Constitution provides that "just compensation" is the standard for compensation for a taking of property and the County is thus bound to pay the residents the amount that they are entitled to rather than an amount determined by any other means. On behalf of the affected Paukaa residents, Council Member Yagong moved to amend Resolution No. 70 to require that the settlement offer to the affected Paukaa residents must be reviewed and approved by the Council prior to proceeding with any construction right-of--entry process. Assistant Corporation Counsel Ted Hong, who has been assisting the Council regarding this matter as a substitute for Deputy Corporation Counsel Gerald Takase, was asked about the implications of this proposal. (See Communication No. 249.03.) Mr. Hong explained that his understanding is that this amendment would require the Corporation Counsel's Office to submit all settlement offers in condemnation actions to the Council for its approval. Mr. Hong remarked that the Court might be willing to appoint an arbitrator to arbitrate any differences. This could possibly occur during an executive session of the Council. Under this proposal, if the Council accepts the Corporation Counsel's recommendation, then the right-of-entry process could proceed. In response to further questions, Mr. Hong noted that fluctuations in settlement amounts might be used against the County unless differing valuations can be attributed to differing circumstances. He noted that he believed that the Council would approve the settlements for groups of affected residents rather than for individual residents on a one-by-one basis. Your Committee amended Resolution No. 70 by adding the following: "The settlement offer must come before full Council for review and approval before the right-of-entry of construction is permitted." Public Works and Parks Committee Report Comm. No. 249/Resolution No. 70 Page Four Council Member Ray expressed reservations about the Council adopting this proposal, which could impact the compensation issue, without receiving input from the Department of Public Works as well as from experts in the area such as representatives from the real estate or appraisal industries. In order to enable the Council to address this matter in an informed manner, he cited a need for information about issues such as: what is reasonable in the industry and what kinds of standazds are used to arrive at appraisal amounts. Council Member Ray stated that he hoped this information could be provided to the Council at the Council meeting. Council Member Chung also requested information of the Office of the Corporation Counsel regarding whether any benefit, tax or other, would be derived for a landowner if the County were to purchase a property as opposed to acquiring it by condemnation. Mr. Hong stated that they would take a look at this issue before the next meeting. After consideration of all of the circumstances, Your Committee reports that it is in accord with the purpose and intent of Resolution No. 70 as amended, to Draft 2; and recommends its adoption on second and final reading. lc AYES NOES A&E EX Respectfully submi ed YAGONG X C ITTEE O UBLIC WO ~S REYNOLDS X CHUNG X J LEITHEAD-TODD X J YNO DS, T G CHAIR RAY X 61 SANTANGELO x PW&PC REPORT NO. smnTx x SEP - ' ARAKAKI E.O.M X ADOPTED: