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HomeMy WebLinkAboutREP FC 070 04/24/1997 1996-1998 REPORT OF THE COMMITTEE ON FINANCE DATE: April 24, 1997 Re: Comm. No. 212 PLACE: Councilroom TIME: 8:05 A.M. Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance. to which was referred, Bill No. 62, reports as follows: Bill No. 62, transmitted by Finance Director Harry A. Takahashi via Communication No. 212 dated Mazch 11, 1997, amends Ordinance 96-68, as amended, relating to Public Improvements and Financing thereof for the fiscal yeaz July 1, 1996 to June 30, 1997, by adding the following project: Post Hazvest Treatment Facility $2,000,000 (l 10-199-5199.04- I 1 Funds for this project shall be provided from: General Obligation Bonds and/or Other Sources $2,000,000 A presentation was made by Mayor Stephen K. Yamashiro in support of the administration- initiated capital improvement project measure. During such presentation, the Mayor expressed his commitment to developing agriculture as a main economic element for the east side of the Big Island and pointed out that the construction of a post harvest treatment facility, utilizing irradiation techniques, will be a crucial step in that direction. He pointed out the potential for developing a major tropical fruit industry on the Big Island which is presently hampered due to our State's quarantine status as a fruit fly zone. According to the Mayor, the product has been • test-marketed and been proven to be a viable crop for our island. He also explained that gamma irradiation or sterilization, the process intended to be used in the facility, is a safe process. Although he is hopeful that the private sector will develop the project, the Mayor stated that favorable action on the instant measure by the County is necessazy in order to induce the immediate development or ciiltivation of the crop. This will be achieved by guaranteeing to growers or potential growers the presence of a facility in the near future which will allow them to take their product to market. A presentation was also made by representatives from lsomedix, a private company that specializes in the construction and operation of irradiation facilities. They provided background on irradiation technology, the proposed facility and safety concerns and guidelines. Extensive testimony was heard both in support of and in opposition to the irradiation facility. Many significant points were raised by committee members. Both Ms. Leithead-Todd and Mr. Tyler stated their objections to any possible use of Hawaiian Home Lands and ceded lands for the location of such a facility. Mr. Yagong stated that such a measure would signify this body's support for diversified agriculture. Although most members, in varying degrees, questioned the necessity of the County's funding of the project, the Chair argued that County involvement would at least enable the Cormty Council to oversee its development, particularly with respect to its location. Finally, Mr. Ray expressed concerns over the fact that the language of the bill evas not sufficient to indicate for what purposes the money would be spent. Accordingly, Bill No. 62, Draft 2, introduced by Mr. Ray, was circulated. It expanded the use of the $2,000,000 Post Harvest Treatment Facility appropriation by including language which specifically provided that the funds would be used for "planning, design, construction, crop and product development, mazketing, promotion and related infrastructure". In addition, Draft 2 stipulated that "any contracts related to the expenditure of these funds for this project shall be submitted to the Council for its review and authorization prior to signing by the Mayor". Your Committee on Finance is in accord with the purpose and intent of Bill No. 62, Draft 2, and recommends it pass first reading. rms Ayes Noes A&E EX CHUNG X Respectfully submitted LEITHEAD-TODD X CO J:~TEE ON FINANCE RAY X l SANTANCELO X ~ ~ _ SMITH X TYLER x AARON S. 'HUNG, IR vncoNC X FC REPORT NO. ~ ~ ARAKAKI, 6. o.M. X ADOPTED: MAY 0 7 t~-