HomeMy WebLinkAboutREP FC 282 10/06/1998 1998-2000 REPORT OF THE
COMMITTEE ON FINANCE
DATE: June 20, 2000 Re: Comm. No.804/Bill No. 275
PLACE: Council Chambers
TIME: 10:55 A.M.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Bill No. 275, reports as follows:
Bill No. 275, transmitted by Council Member Aaron S.Y. Chung, via Communication No. 804,
dated June 7, 2000, authorizing the issuance of general obligation bonds for the purpose of
financing various public improvements of the County of Hawaii; fixing the form,
denominations, and certain other details of such bonds and providing for their sale; and
authorizing the issuance and sale of a like principal amount of general obligation bond
anticipation notes in anticipation of the issuance and sale of such bonds and appropriating funds
for the costs of the issuance of such bonds.
The approval of Bill No. 275 would enable the County to upgrade the County's radio
communication system from a 2ghz analog system to a 6ghz digital system. The County needs
to abandon its current 2ghz communication channel by May 2005 to avoid interference between
the private communication services companies.
A presentation was given by Mr. Dale Mau, Vice President of PacificWireless Communications,
representing the Hawaii County public safety agencies. During Mr. Mau is presentation, Your
Committee learned that the County's system is aging and replacement pazts aze impossible to
find. Also, communication towers are in such poor shape that a minor disaster, such as high
winds from a tropical storm, could knock out communication.
Pursuant to Chapter 3, Section 5-3.3(c), Hawaii County Charter, the Director of Finance shall
negotiate loans and the issuance and sale of bonds and notes when authorized by the Council.
Some members of Your Committee expressed concern that there is no repayment plan included
in next year's budget for the aforementioned bond authorization. Finance Director Harry
Takahashi suggested the County could borrow $2 million from the General Fund to get this
project started and wait for ideal market conditions to sell the bond. The bond proceeds would
be deposited back into the General Fund.
FC REPORT NO. 282
Your Committee, during its discussion of Bill No. 275, amended Section 14 to read as follows:
$8,000,000 shall be used for the [sale] sole purposes of financing a radio communications
system to be used by agencies of the County of Hawai`i."
Your Committee on Finance is in accord with the purpose and intent of Bill No. 275, as amended
to Drafr 2, and recommends it pass first reading.
smc
AYES NOES A&E EX
Respectfully submitted
CHUNG X
ELARIOIVOPF X OMMITTEE ON FINA1V'C~sl~
JACOBSON X
LEITHEAD-TODD X
PISICCHIO X
SMITH X
TvLER X AARON .Y. CHUNG, C AIR
vAGONG X <;C REPO N 282
ARAKAKI, e.o.M. ADOPTED: L~~1t0(~