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HomeMy WebLinkAboutREP FC 001 2015/01/06 (2014-2016)REPORT OF THE COMMITTEE ON FINANCE DATE: January 6, 2015 PLACE: Council Chambers Hilo, Hawai `i TIME: 2:05 p.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Re: Comm. No. 26/13111 No. 7 Your Committee on Finance, to which was referred Bill No. 7, reports as follows: Bill No. 7, transmitted by Finance Director Nancy Crawford, via Communication No. 26 dated November 28, 2014, amends Ordinance No. 14-82, as amended, relating to public improvements and financing thereof for the fiscal year July 1, 2014 to June 30, 2015. This bill establishes the following program appropriations: PROGRAM AMOUNT Roadway Projects (Engineering) S1,750,000 Bridge Inspection, Repair. & Replacement 1,500,000 Program (Engineering) Local Road Improvements (Highways) 3,250,000 TOTAL 56,500,000 Allotments from the above program appropriations shall be made to the projects as shown on Exhibit A of the bill. Funds for these projects shall be provided from that portion of Highway Fund designated as the Fuel Tax Increase Account No. 3104.06, and which consists of the increase fuel tax revenues created pursuant to Resolution No. 504-08. Public Works Director Warren H W. Lee appeared before Your Committee to answer questions by the members ofthe Committee. He stated that Local Roads is a road repaving program used primarily for engineering major road improvement projects and State Transportation Improvement Projects (STIP). He mentioned that the County provides 20 percent of the cost, and the Federal Government, through the State Department of Transportation, provides 80 percent. Director Lee further explained that the standard breakdown is 50 percent for engineering, 50 percent for road resurfacing, and commented that Council could approve a different split of percentages. FC Report No. 1 FC -1 Page 2 January 6, 2015 Council Member Onishi asked about the possibility of moving money from Bridge Inspection to Local Road Improvements to purchase asphalt for County crews to pave local roads. Director Lee responded that adjustments could be made, however, less bridge repair work would have to be made or less engineering work, in order to get STIP money for the larger projects. Mr, Lee further stated that the formula currently being used has worked well so far. Council Member Poindexter spoke in support of this measure, expressing concerns about many wooden bridges in District 1 having "one way in, one way out", and emphasized the importance of repair of these bridges for the people, Civil Defense and Rescue. Council Member Wille inquired regarding the number of crews we have, amount of work contracted out, and amount of work done in-house, to which Director Lee responded that local road improvement work is done by Highways Division crews, while larger projects require contracting. Director Lee then explained that for local road improvements, the Highways Division is responsible for maintenance of roads, flood control channels, mowing grass, keeping site distance and other jobs, and that there are approximately 130 employees at baseyards in South Hilo, Honoka`a, Waimea, N. Kohala, Kona, Puna and Ka'u. Pursuant to Section 10-6(e), Hawai`i County Charter, the Council may amend the Capital Budget for that year with a two-thirds vote. Your Committee on Finance is in accord with the purpose and intent of Bill No. 7, and recommends its passage on first reading. �k -- - ----- CHI NG 1 - :\l LS - 7 ; NOESABS r- �_ i LA - -r- --- - DAVID EOF F X t - -- +-- { -- T (LAGAN -- --- L - KANI HA UNISHI X t X I t - - I PAUKA POINDFXFER WILLL- X I X Respectfully submitted. COMMITI FIF. ON FINANCE: KAREN EOFF, CHAIR FCREPOR"I NO.: ADOPTED JAN 23-2615 2015—