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Home My WebLink AboutREP FC 093 09/15/2009 2008-2010 REPORT OF THE COMMITTEE ON FINANCE DATE: September 15, 2009 Re: Comm. No. 488Bill No. 132 PLACE: Council Chambers Hilo, Hawaii TIME: 3:45 p.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Bill No. 132, reports as follows: Bill No. 132, transmitted by Council Member Dominic Yagong, via Communication No. 488, dated August 14, 2009, amends Chapter 2, Article 19, Hawaii County Code 1983 (2005 Edition, as amended), relating to Council approval for certain County land transactions. The purpose of this measure is to amend Sections 2-112 through 2-114, to require Council approval for land transactions of ten acres or larger; and that the Director of Finance will submit a resolution including the terms of sale or lease, the intended use of the property, and the name or names of the perspective buyer or lessee for the Council's approval. At the September 1, 2009 Committee on Finance Committee meeting, Chair Yagong relinquished the chair to Vice Chair Ikeda, who was attending the meeting via videoconference from Hilo. There were no objections by members of the Committee. Finance Director Nancy Crawford was present at the September 1 sc meeting. She stated that the preferred way for the Administration to dispose of public land is to hold public auctions. She further stated that this is a very public process. During the meeting, she read a written testimony, dated August 31, 2009 (see Comm. 488.25). At the request of Chair Yagong, she clarified that the testimony contains her position on the bill, but the letter has been reviewed by the Mayor and has his blessing. In the letter, Ms. Crawford explains that the legislation will be a deterrent to bidders. She states that if the bill passes, once the winning bidder has made a deposit to secure the bid, they will have to wait approximately six weeks for the Council to approve their purchase. The bidder will be evaluated by the County Council to determine if they and their proposed use of the property will be acceptable. She further states in Comm. 488.25 that the Council may either decide the winning bid is too low and not sell at all; or they may not approve the sale for other reasons which would bring the second highest bidder in to repeat the process. In the final paragraph, Ms. Crawford states that Zoning and Land Use laws are in place to dictate acceptable uses of properties. Chair Yagong stated that the bill does not change the process which authorizes the Mayor and the Council to sell lands. The bill merely gives transparency to the process. He emphasized the importance of the public's opportunity to provide feedback and testimony regarding the land sales. FC REPORT NO. 93 i Comm. 488 (Bill 132) September 15, 2009 Page -2- Communication 488.1, dated August 26, 2009, transmitted by Chair Yagong was circulated at the meeting. This was a housekeeping amendment to change each instance of the word "perspective" to "prospective." An additional verbal amendment to change the word "seal" to "sealed" in the title of section 2-113 on page one met with no objections. These amendments were unanimously approved by Your Committee. At its meeting of September 15, 2009, Your Committee heard Comm. 488.26, Bill 132, Draft 2. Comm. 488.27, from Chair Yagong, transmitting proposed amendments to Bill 132, Draft 2 was circulated. The proposed amendment adds the words "or appraised in value at or in excess of $500,000" and "This section shall not apply to real property obtained by the County through foreclosure due to non-payment of real property taxes" to Sections 2-112(b), 2-113(b) and 2-114(e). Chair Yagong stated the Hamakua lands belong to everyone in Hawaii County. He further stated that he would like for the Administration and the Council to not look at this as a burden but as an opportunity that the people deserve. Finance Director Nancy Crawford reiterated that the intent of the bill appears to be to control who buys the land and what will happen there, which would be difficult. Councilmember Naeole stated she would be voting "no." Councilmember Enriques opposes the bill because it appears as though the Council is micromanaging the Administration, who should be trusted and accountable. Councilmembers Greenwell, Hoffmann and Ford expressed support for Bill 132. A motion to approve this measure received four "aye" votes. Pursuant to Rule 5, Council Rules of Procedure and Organization, five "aye" votes are required to pass a measure. Therefore, Your Committee on Finance forwards Bill 132, as amended to Draft 3, to the Council with a negative recommendation. /na AYES NOES A&E Ex Respectfully submitted, ENRIQUES X FORD X COMMITTEE ON FINANCE GREENWELL X HOFFMANN X IKEDA X NAEOLE X ONISHI X DOMINI AGONG, IR YAGONG X FC REPORT YOSHIMOTO X ADOPTED: