HomeMy WebLinkAboutREP FC 023 01/21/1997 1996-1998 REPORT OF THE
COMMITTEE ON FINANCE
DATE: January 21, 1997 Re: Comm. No. 59
PLACE: Councilroom
TIME: 10:43 A.M.
Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 14, reports as follows:
Bill No. 14, transmitted by Finance Director Harry Takahashi, via Communication No. 59, dated
December 23, 1996, amends Ordinance 96-72, as amended, the Operating Budget ending
June 30, 1997. Bill No. 14 is intended to implement the policy set forth in Ordinance 96-2,
which establishes the Geothermal Relocation Program.
The amendment is as follows:
From:
095-000-3201.71 Geothermal Royalties Geothermal Royalty $148,000.00
095-000-3609.10 Fund Balance from Previous Year 348,192.00
$496,192.00
To:
095-141-5143.01-011 Geothermal -Reg. S&W Geothermal Royalty $ 6,024.00
095-141-5143.02-115 Geothermal -Misc. Contractual Services 487,457.00
095-801-5802.31-341 Geothermal -Pension Accum. 978.00
095-801-5802.34-341 Geothermal -FICA Employer Share 461.00
095-801-5802.38-341 Geothermal -Employee Health Plan 1.272.00
$496,192.00
The Geothermal Royalty Fund consists of an annual contribution from PGV of $50,000.00 and
30% of the royalties given to the State from the sale of the steam itself.
Public concerns were expressed regarding the liability placed on the County of Hawaii by Puna
Geothermal Venture. The public felt that compensation to the community, both inside and
outside the one mile radius of the plant, should be made by PGV and not the County. Questions
also raised were in regard to the rationale behind the one-mile radius ruling, whereas, the actual
affected area could be larger.
Similarly, Your Committee questioned the possible ramifications and accountability the county
would encounter. Your Committee also requested an explanation regarding the difference
between the Geothermal Royalty and Asset Funds. Planning Director Virginia Goldstein,
Controller Dixie Kaetsu, and Planning Program Manager Norman Hayashi served as resource
people to address those concerns.
FC REPORT NO. 23
As explained by the Planning Department, the Geothermal Asset Fund was established as a
condition of a Geothermal Resource Permit granted to Puna Geothermal Venture, to be used for
short term, emergency-type supplemental aid or reimbursement. Whereas, the intent of the
Geothermal Royalty Fund is to financially compensate those individuals living near the Puna
Geothermal Venture plant in their desire for permanent relocation. The amendment as stated
above will be the means in which the County can begin the procedure of relocating those
homeowners living in the affected Puna community. Moneys within the Geothermal -Misc.
Contractual Services account will be used to hire a real estate appraiser and a claims adjuster to
assist in the relocation process.
Your Committee on Finance is in accord with the purpose and intent of Bill No. 14 and
recommends it pass first reading.
Ikc
Ayes Noes A&E EX
CHUNG X Respectfully submitted
LETTHEAD-TODD X C~M~'fTEE FINANCE
RAY X f/
SANTANGELO X ~ ~ i`~ ' L ~ -
SMITH X "
TYLER x AARON S.Y: CHUNG, C IR
vAGONG X FC REPORT NO. 2
ARAKAKI, E.O.M. X ADOPTED: ~ T 19A7