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HomeMy WebLinkAboutREP PWC 182 08/11/1987 1984-1988 REPORT OF THE COMMITTEE ON PUBLIC WORKS DATE : August 11 , 1987 PLACE : Councilroom TIME: 1 : 30 p.m . Chairman and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Public Works to which were referred Communication Nos . 1088 and '1088 . 1 , reports as follows: Communication 1088 from Council Chairman Yamashiro requests a committee review of a schedule of improvements which was sent to the County Council by the Chief Engineer as part of a proposal to increase taxes on fuels . Communication 1088 .1 is an assessment of Communication 1088 from the Public Works Committee Chairwoman Lai which recommends that the Public Works Committee go on record to support the establishment and maintenance of: 1 ) the Highway Fund as a self-supporting fund; 2 ) a Highway Fund equipment replacement program; 3 ) a resurfacing and rehabilitation program for County roads; and 4 ) a 10 : 10 : 80 distribution formula for additional revenues allocating funds between operations , equipment replacement , and resurfacing and rehabilitation . Your committee has accepted the testimony of the Department of Public Works in support of the proposed fuel tax for maintenance programs . Your committee has been advised, based on a March 1986 Public Works Department study of the Highway Maintenance Program, that a staff of 201 people and an annual budget of approximately $13 ,500 ,000 is required for the Highway Fund . Present departmental staffing is 150 or 75 percent of required personnel and the annual $6 ,000 ,000 Highway Fund budget is less than 50 percent of the recommended financial needs of the program. As additional testimony in support of the need for a fuel tax increases , the Department of Public Works has pointed out that revenues to the Highway Fund have remained relatively constant over the years and have not kept up with inflation , resulting in a decrease in the department ' s purchasing power and ability to provide services . Approximately 75 percent of its $6 ,000 ,000 Highway Fund represents fixed costs leaving less than $1 ,500 ,000 annually for materials and services for repairs work . PWC REPORT 9 . 182 I\DOPTED : SEP 2 PWC-182 Page 2 August 11 , 1987 Should Highway Fund revenues remain constant, the Department of Public Works anticipates that: 1 ) roadside mowing activities will begin to decline, mainly due to equipment breakdowns; 2 ) drywell maintenance activities would likely decrease, causing drainage problems; 3 ) the guardrail replacement program will decline; 4 ) resurfacing of roads , except where Federal assistance is available, will cease; and 5 ) the County ' s capability and accomplishment of heavy construction maintenance will decline because of aging equipment . In contrast to the State and other counties , your committee has been informed that the State , maintaining 950 miles of roadway, collects 11 cents per gallon; City and County, maintaining 1,300 miles of roadway, collects 11 .5 cents per gallon; Maui County, maintaining 536 miles of roadway, collects 8 cents per gallon; and Kauai County, maintaining 247 miles of roadway, collects fuel taxes of 4 cents per gallon . Hawaii County, with 1 ,000 miles of roads to maintain, collects fuel taxes of 5 cents per gallon . The Department of Public Works , aware that this committee is supportive of a plan whereby additional fuel tax revenues are allocated at a predetermined ratio among the districts , has submitted as part of its testimony, a fuel tax district apportionment formula which considers both district vehicle weight tax contributions and the number of miles of County roadway in each district . This district apportionment formula illustrates the allocation of an anticipated $1 ,300 ,000 over nine districts and its immediate effect on total highway rehabilitation needs which exceed $10 ,000 ,000 . Your committee has found this apportionment formula to be generally acceptable . Your Committee on Public Works also acknowledges receipt of two additional testimonies - from Mr . Herbert J . Perreira, Chairman of the Big Island Labor Alliance (C-1063 .4) and from Mr . Jack Konno, Hawaii Division Director of the United Public Workers (C-1063 .5 ) . Your committee believes that these testimonies, addressed to the Public Works Committee , should also be considered with the fuel tax itself . Your Committee on Public Works recognizes that there is a need to increase the revenues of the Highway Fund to carry on the highway maintenance program. Once additional revenues are generated and designated for allocation , more specific project appropriations can be identified . Your committee is aware of the Public Works Department 's willingness and ability to phase its projects to insure district distribution . PWC-182 Page 3 August 11 , 1987 Your Committee on Public Works thus recommends that Communications 1088 , 1088 . 1 , 1063 .4 , 1063 .5 and the proposed fuel tax district apportionment formula for highway rehabilitation fund distribution be submitted to the Finance Committee for use in its deliberations in providing additional reven6-s for the Highway Fund . MERLE K . LAI , CHA 'WOMAN / / J• ILA , SSELL S. KOKUBU VICE CHAIRMAN FRANK DE LUZ III , MEMBER TAKASHI DOMINGO, M B2R ROBERT N. HERKES, MEMBER LA/GM