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Home My WebLink AboutCOM 0268.000 2012-2014 William P.Kenoi '`.P*_- ;;1 Nancy E. Crawford Mayor . n ....r;�;�/;} Director "___— Deanna S. Sako +r�r .•"gip-= Deputy Director • E Oi M� County of Hawaii Finance Department 25 Aupuni Street,Suite 2103 • Hilo,Hawaii 96720 (808)961-8234 • Fax(808)961-8569 April 25, 2013 J Yoshimoto, Council Chair and Members of the Hawai`i County Council Hawai`i County Council 25 Aupuni Street Hilo, Hawai`i 96720 Re: Operating Budget The State of Hawaii Department of Agriculture is providing $60,000 to the Department of Research and Development to support the development of a food processing facility to benefit agricultural producers in the Hilo/Hamakua area. The proposed processing facility would serve the community by enabling locally produced fruits and vegetables to be created into value-added products such as juices, extracts, fruit leather, seasonings, tea, salad dressings and more. Enclosed is a resolution authorizing the Mayor to enter into an agreement with the State of Hawai`i Department of Agriculture for this grant. Also enclosed is a bill for an ordinance amending the Operating Budget by appropriating this $60,000 grant award. The Department of Research and Development is requesting that this bill and resolution be waived from the Finance Committee and be placed on the May 15, 2013 Council Agenda in order to enter into the agreement and encumber the funds during the current fiscal year. If there are any questions, please do not hesitate to call Jeff Melrose from the Department of Research and Development, at 961-8947. F Nancy Cr wford Director of Finance Enc. cc: R&D <fi.e . 1Lb'I3J SiII110 Comm. No. Zfo Ref.To: .42 (,1TtJ•tL4 Hawaii County is an Equal Opportunity Provider and Employer Ref. Date APR 2 s 2013 Form #: B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Research and Development DATE: April 22, 2013 STAFF CONTACT: Jeff Melrose PHONE: x8947 A. REQUEST: To allow the Department of Research and Development to accept a $60,000 grant from the State Department of Agriculture. The following expenditure accounts are also requested: $59,000 for miscellaneous contract services and $1,000 for advertising. Waive: Finance Committee due to the limited timeframe. County needs to enter into a grant agreement with the Department of Agriculture, who is required to encumber their funds prior to June 30, 2013. B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The acreage on Hawaii Island producing diversified agricultural crops has significantly increased in the Hilo/Hamakua areas following the shutdown of the sugar plantations. In the area between Puna and Hamakua there is 1800 acres in tropical fruit production, 2000 for truck crops, over 2000 acres in papaya production,as well as hundreds of acres in foliage, macadamia, cocoa, heart of palm, and greenhouse tomatoes. Hilo's deepwater harbor facility and international airport provides an avenue for local products to access export markets. The Hawaii Department of Agriculture is offering $60,000 of funding to Hawaii County to support the development of a food processing facility to benefit agricultural producers in the Hilo/Hamakua area. R & D would conduct a solicitation for proposal requesting facilities planning, design and permitting. The proposed processing facility in the Hilo/Hamakua area will serve the community by enabling locally produced fruits and vegetables to be created into valued added products. Examples of value added products might include: juices, extracts, fruit leather, seasonings, tea, salad dressings,puree, fortified beverages and/or frozen fruit. The ultimate goal is to use locally grown products to develop new products for sale locally and abroad. SIGNED: g4445; DATE: 4/22/13 ep3Afrient Head GRANT SUMMARY (Supplement to B-52, Request for Council Action) Type of Grant Appropriation being requested: (New or an additional appropriation) New(for this fiscal year period). OR ❑ Additional appropriation(to an existing grant); Is a draft agreement attached? Has the original grant notification been transmitted to ❑ Yes ®No Council? ❑ Yes ❑No Name of Grant Program: Agriculture Production and Processing Facility Grantor: State of Hawaii-Dept. of Agriculture County Grantee Department or Agency: Department of Research and Development County Grantee Contact Person: Jeff Melrose Phone Number: 961-8947 Amount of Grant: $60,000. Grant Period (Commencement& Completion): 6/30/13-6/30/15 Purpose of Grant: Planning for post-harvest agriculture processing facility. County Match required?: ❑ Yes ® No If yes, Matching Amount? Budgeted in account# : In-kind? Explain: Explanation: County's personnel requirements: Amount of new position(s)? Qty: Permanent: ❑ Temporary: ❑, Duration: Full-time: ❑ Part-time: E, Time Element: Qty: Contractual: ❑ Explain: Explanation: Additional Comments about Grant: B-52 Grant Summary Form William P. Kenoi j � Laverne R. Omori Mayor ;Imo: • Acting Director County of Hawai' i DEPARTMENT OF RESEARCH AND DEVELOPMENT 25 Aupuni Street, Room 1301 • Hilo,Hawai i 96720-4252 (808)961-8366• Fax(808)935-1205 E-mail: chresdev @co.hawaii.hi.us April 19,2013 Mr. Russell Kokubun,Chairperson State of Hawaii, Department of Agriculture 1428 S. King Street Honolulu, HI 96814 Subject: Request for Funding:Agricultural Post-Harvest Model: Production, Processing Marketing Facility Dear Chairman Kokubun: Based on prior conversations with the Department of Agriculture's Agricultural Development Division(ADD),the County of Hawaii requests your consideration to fund the"kick start"of a post harvest/value added facility to serve farmers along the Hilo/Hamakua coast. Hawai'i Island needs a processing facility to transform products that are not sold fresh but can be changed into a value-added product to create a revenue stream for farmers and manufacturers. This facility will include production,processing and marketing of our island's agricultural commodities. Since the closing of the sugar operation at Mauna Kea and Hamakua Sugar,there has been a significant upswing in the amount of land in active diversified agricultural production in Hamakua and Hilo. Currently,there are over 1,800 acres of tropical fruit production along the coast,more than 2,000 acres of truck crops,200 acres of banana,a major greenhouse tomato operation as well as cacao,heart of palm,macadamia nut and foliage production. In the nearby Puna area there is also over 2,000 acres of papaya production with opportunities to create value added products from off-grade fruit. Some examples of valued added processing might include: Juice Powder/flour/pulverize Concentrate Extract Tea N utraceutica I Dehydrate/fruit leather Cosmetic Dye Seasoning Puree(foodservice/candy) Fortified beverage Sauce/salad dressing Chunk/slice/dice/julienne Freeze Hawai'i County is an Equal Opportunity Provider and Employer Chairman Russell Kokubun State of Hawaii, Department of Agriculture April 22,2013 Page 2 This coastline has a rich supply of water,both from the Hamakua ditch and from natural rainfall and perched springs. There is also a significant amount of both state and private lands available for farming with easy access to transportation infrastructure including an international airport and deep draft harbor facilities.The USDA's Pacific Basin Agricultural Research Center is based in Hilo and offers state of the art food science and research services. HDOA,CTAHR and the University of Hawaii at Hilo are also poised to support such a facility. These funds would be expended by the County's Department of Research and Development through a Request for Proposal(RFP)process and be awarded to the applicant most likely to deliver such services in a responsible manner and in the shortest period in time. Applicants need to prove their capacity to deliver such a facility,explain the most ideal and accessible location as well as who their target user would be. Financial capacity to deliver non- governmental funds for the project will be a key consideration. The funds would be used for facilities planning and design,and permitting. If you have any additional questions,please feel free to call me at 961-8366. We are privileged to partner with the Department of Agriculture on this project and look forward to more opportunities in the future. This type of inclusive facility does not exist on our island and we look forward to your positive reply. Sincerely, LAVERNE OMORI Acting Director Cc: Scott Enright Sharon Hurd Mayor Billy Kenoi VALERIE T.POINDEXTER •-.,-115.!.:!,?_!:•"w, KAREN EOFF Chairperson -` ��\lilt BRENDA FORD • 4\-' .:,e/ • DRU KANUHA GREGGOR ILAGAN - ZENDO KERN Vice Chair ? :•'4 DENNIS"FRESH"ONISHI . !..°`,".� MARGARET WILLE J YOSHIMOTO HAWAI`I COUNTY COUNCIL County of Hawai`i Hawaii County Building 25 Aupuni Street Hilo, Hawaii 96720 April 25, 2013 J Yoshimoto, Council Chair Hawai`i County Council 25 Aupuni Street Hilo, Hawai`i 96720 RE: Resolution No. 110-13 : Resolution Authorizing the Office of the Mayor to Enter into an Agreement with the State of Hawai`i Department of Agriculture, Pursuant to HRS 46-7, for a Grant to Support the Development of a Food Processing Facility in the Hilo/Hamakua Area; and Bill No. 76 : An Ordinance to Amend Ordinance No. 12-86, as Amended, the Operating Budget for the County of Hawai`i for the Fiscal Year ending June 30 2013. Pursuant to Section 2(g) of Rule 4 of the Rules of Procedure of the Council of the County of Hawai`i, this written request is submitted with my approval that the above-referenced matter be waived from the Committee on Finance to the full Council for immediate action. In reviewing this matter, timely approval is crucial. It is therefore advantageous that approval is granted and the matter be placed onto the next Council agenda for review. However, in the event this request is denied, for whatever reason, I understand the matter shall be referred to the Committee on Finance for placement on its future agenda. Sincerely, 7LJte4D -(‘'W 724,24e.,,.Valerie T. Poindexter, Chair Committee on Finance A proved/Date/Waive to Council: Disapproved/Date/Refer to FC: J L__ __—_(:: Z52., J Yoshimoto, Council Chair J Yoshimoto, Chairperson Hawai`i County Council Hawai`i County Council VP/sc Hawai`i County is an Equal Opportunity Provider and Employer