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REPORT OF THE <br /> COMMITTEE ON FINANCE <br /> DATE: March 13, 2018 Re: Comm. No. 780/Bill No. 113 <br /> PLACE: Council Chambers <br /> Hilo, Hawai`i <br /> TIME: 9:03 a.m. <br /> Council Chair and Members <br /> Hawai`i County Council <br /> Hilo, Hawai`i 96720 <br /> Your Committee on Finance, to which was referred Bill No.113, reports as follows: <br /> Bill No. 113, transmitted by Council Member Susan L.K. Lee Loy, via Communication No. 780 dated <br /> February 22, 2018, amends Chapter 2 of the Hawai`i County Code 1983 (2016 Edition, as amended), by <br /> adding a new article relating to commercial sponsorship of County Assets. <br /> This bill establishes a process for individuals, corporations, and other organizations to obtain. <br /> sponsorships for County facilities, parks, programs, equipment, and tangible property in exchange for <br /> financial considerations to increase County revenue from sources other than real property tax. <br /> Council Member Susan L. K. Lee Loy stated this bill is something other.municipals use in order to <br /> generate additional revenues to maintain County assets, and added that if the County could invite <br /> community partners to the table to help maintain some of its aging infrastructures and assets, it would be <br /> a vehicle for the County. Ms. Lee Loy stated the qualifier is a $20,000 buy-in. She picked this number <br /> hoping that a sponsor be willing to commit that amount of money and committed to helping the facility. <br /> Ms. Lee Loy made it clear that there are safeguards as to how a sponsor could be recognized, ensuring <br /> that the sign ordinance would be adhered to because of its rules and regulations in and of itself. It would <br /> also ensure that a facility would be named or continued to be named through a process that the Council <br /> already has. She also commented that if there is a sponsor interested, the first step would be, is to work <br /> out a sponsorship agreement with the director of an appropriate department. Once an agreement is in <br /> order with the department's director and Corporation Counsel, it would then be further reviewed by the <br /> Department of Finance since it would be revenues for the County. Ms. Lee Loy wants to ensure that the <br /> revenue the sponsor has directed the funds to go to would stay there and not fall into the general fund <br /> and not be moved around elsewhere. Once the agreement is in place with the director of a department <br /> and with the Finance Director, the Council would then have to adopt that sponsorship agreement by <br /> resolution, and then there would be a larger public review process. Ms. Lee Loy feels that it will not <br /> hurt to have this put into the County Code and to be used at a later time. This type of policy may be <br /> used to go out and invite sponsors for different programs and facilities. <br /> Council Member Herbert M. "Tim" Richards, III asked of Ms. Lee Loy what her vision is for this bill, <br /> and also asked if there is a limit on how many times a sponsor can put their names on a facility or <br /> program. Ms. Lee Loy stated that the facility name would not change, which is her reason for leaving it <br /> flexible and up to the individual departments as to how they want to handle the sponsorship. She stated <br /> the purpose of this bill is to be able to enhance a project or facility, depending on the needs of the <br /> department. She reiterated that the safeguards are the agreements with the department, the review by <br /> the Finance Director, and then confirmed by the Council. <br /> FC Report No. 90 <br />