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HomeMy WebLinkAboutREP FC 037 2017/09/06 (2016-2018) REPORT OF THE COMMITTEE ON FINANCE DATE: September 6, 2017 Re: Comm. No. 401/Res. No. 261-17 PLACE: Council Chambers • Hilo, Hawai`i TIME: 1:35 p.m. Council Chair and Members Hawai`i County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Resolution No. 261-17, reports as follows: Resolution No. 261-17, transmitted by Finance Director Collins Tomei, via Communication No. 401 dated August 17, 2017, authorizes the Office of the Mayor to enter into an agreement with the Department of Hawaiian Home Lands (DHHL),pursuant to Hawai`i Revised Statutes 46-7, for the County of Hawai`i to receive reimbursement funds for streetlight conversion on property held by the Department of Hawaiian Home Lands. This agreement is for DHHL to reimburse the County$400,000 for the conversion of streetlights on DHHL lands from low pressure sodium to light emitting diode. Council Member Susan L. K. Lee Loy requested some background as to better understand this resolution and the amount Hawaiian Home Lands is required to reimburse the County. Ron Thiel, Chief of the Traffic Division, stated six years ago he was working with DHHL regarding accident issues. During discussions with DHHL's administrators, one of whom was Linda Chin, she stated that she was appreciative of the County paying for electricity for streetlights on DHHL land, which Mr. Thiel was aware of because State statute provides that the County has to maintain roads within DHHL property. He noted that currently two counties in the State pay for electricity associated with streetlights and the other three counties do not. He explained in early 2000 Mayor Kim wrote a letter stating the County would pay for electricity. Therefore, when DHHL develops their land and installs infrastructure (streetlights), the County agreed to maintain it. Mr. Thiel stated he worked with Jeff Fujimoto a few years ago and brought up the conversation about paying for the upgrade on streetlights. He understood it to be a volunteer situation, there wasn't any pressure to do it. It was just part of maintaining existing facilities on DHHL properties and paying for the electricity. Mr. Thiel said the electric bill is over $200,000, since the County started paying for it, and there are about 700 lights on DHHL property. At that time, Mr. Fujimoto said that he would apply for Capital Improvement Projects funds to reimburse the County in the amount of$400,000. That process is complete and transfers the amount back to the County. Mr. Thiel noted that prior to receiving this reimbursement funds from the current Operating Budget,marked as Signal and Street Light Upgrades, was used to complete streetlight conversions. So the funds associated with Resolution No. 261-17 reimburses the Highway Fund. Bill 63 would transfer the funds back into the Operating Budget so Mr. Thiel's division can continue upgrading the traffic signals themselves. • FC Report No. 37 • FC-37 Page 2 September 6, 2017 Ms. Lee Loy's understanding is, when DHHL develops their property, they build to dedicable standards and then they dedicate it to the County. Mr. Thiel responded it's accurate today but back then they did not build to dedicable standards. The funds to change out the lights came out of the Highway Fund. They do not have jurisdiction to change out the lights on private roads. DHHL roads are maintained according to State statute, and dedicable standards are questionable. The County is to maintain the roadways and makes no reference to streetlights. Mayor Kim agreed to do the streetlights and pay for electricity. Council Member Aaron Chung asked Patrick Kahawaiola`a, beneficiary, as to his concerns regarding the use of the money for those things that were traditionally being paid for by the County. Mr. Kahawaiola`a believes the ultimate decision makers are the Hawaiian Homes commissioners. His concerns are "if you don't own the roads, it cannot be dedicated to the County," and the use of the term "dedication" is to convey in fee. It is not State statute that makes it to where the County pays, it is the Hawaiian Home Commission Act, the act of Congress in Section 220 that says the County maintains the road. He stated he will have a discussion with Hawaiian Homes to clarify. Mr. Thiel clarified,back then Mr. Fujimoto stated they do not own the streetlights, they do not own anything and that was the premise for them paying for the materials for the new lights because they do not own them. This is the reason for the reimbursement and not for the streetlights. Mr. Kahawaiola`a responded, if what Mr. Thiel represents, the County does not own anything, then the County Charter needs to be amended because Article 1, Section 1, clearly states that the County owns all of the lands on this island, no exceptions, they own all the lands except State and Federal. The conversation of reimbursement was made outside of the rule making procedures and the people with the authority in the Department of Hawaiian Home Lands, and that is the Hawaiian Homes Commission which consist of nine members. Mr. Kahawaiola`a take this matter to them in October when they meet here on the Big Island. Ms. Lee Loy suggested the County follow through with the agreement and will clarify once they can discuss this with DHHL. She further stated that if the agreement was where the department be reimbursed, the work was done,therefore they deserve to be reimbursed. Council Member Kanuha is in support but asked, "What would happen if an agreement is not reached with the department and the County?" Mr. Thiel commented that at this time the County is receiving the benefit of saving energy costs and the reduced maintenance costs,benefiting as is. Pursuant to Section 46-7, Hawai`i Revised Statutes, the Mayor of the County of Hawaii is authorized to execute, on behalf of the County, an agreement and any related documents with the Department of Hawaiian Home Lands for the State of Hawai`i. FC-37 Page 3 September 6, 2017 Your Committee on Finance is in accord with the purpose and intent of Resolution No. 261-17, and recommends its adoption. dm AYES NOES ABS EX Respectfully submitted, CHUNG X DAVID x COMMITTEE ON FINANCE EOFF X KANUHA X LEE LOY X 141111 O'HARA X POINDEXTER x MAILE DA I I, CHAIR RICHARDS X FC REPORT NO.: 37 RUGGLES X ADOPTED: SEP 2 0 2017