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HomeMy WebLinkAboutREP FC 090 2018/03/13 (2016-2018) REPORT OF THE COMMITTEE ON FINANCE DATE: March 13, 2018 Re: Comm. No. 780/Bill No. 113 PLACE: Council Chambers Hilo, Hawai`i TIME: 9:03 a.m. Council Chair and Members Hawai`i County Council Hilo, Hawai`i 96720 Your Committee on Finance, to which was referred Bill No.113, reports as follows: Bill No. 113, transmitted by Council Member Susan L.K. Lee Loy, via Communication No. 780 dated February 22, 2018, amends Chapter 2 of the Hawai`i County Code 1983 (2016 Edition, as amended), by adding a new article relating to commercial sponsorship of County Assets. This bill establishes a process for individuals, corporations, and other organizations to obtain. sponsorships for County facilities, parks, programs, equipment, and tangible property in exchange for financial considerations to increase County revenue from sources other than real property tax. Council Member Susan L. K. Lee Loy stated this bill is something other.municipals use in order to generate additional revenues to maintain County assets, and added that if the County could invite community partners to the table to help maintain some of its aging infrastructures and assets, it would be a vehicle for the County. Ms. Lee Loy stated the qualifier is a $20,000 buy-in. She picked this number hoping that a sponsor be willing to commit that amount of money and committed to helping the facility. Ms. Lee Loy made it clear that there are safeguards as to how a sponsor could be recognized, ensuring that the sign ordinance would be adhered to because of its rules and regulations in and of itself. It would also ensure that a facility would be named or continued to be named through a process that the Council already has. She also commented that if there is a sponsor interested, the first step would be, is to work out a sponsorship agreement with the director of an appropriate department. Once an agreement is in order with the department's director and Corporation Counsel, it would then be further reviewed by the Department of Finance since it would be revenues for the County. Ms. Lee Loy wants to ensure that the revenue the sponsor has directed the funds to go to would stay there and not fall into the general fund and not be moved around elsewhere. Once the agreement is in place with the director of a department and with the Finance Director, the Council would then have to adopt that sponsorship agreement by resolution, and then there would be a larger public review process. Ms. Lee Loy feels that it will not hurt to have this put into the County Code and to be used at a later time. This type of policy may be used to go out and invite sponsors for different programs and facilities. Council Member Herbert M. "Tim" Richards, III asked of Ms. Lee Loy what her vision is for this bill, and also asked if there is a limit on how many times a sponsor can put their names on a facility or program. Ms. Lee Loy stated that the facility name would not change, which is her reason for leaving it flexible and up to the individual departments as to how they want to handle the sponsorship. She stated the purpose of this bill is to be able to enhance a project or facility, depending on the needs of the department. She reiterated that the safeguards are the agreements with the department, the review by the Finance Director, and then confirmed by the Council. FC Report No. 90 FC-90 Page 2 March 13, 2018 Council Member Aaron Chung supports the idea but questioned the process, which caused questions in his mind, being that the agreement entered into is by a department head, however the County Charter states that contracts will be signed by the Mayor unless otherwise authorized. He also questioned why the department head is entering into the agreement rather than the Mayor. J Yoshimoto, Deputy Corporation Counsel, responded that the Mayor would sign off, and to clarify that language should be added to this bill. Mr. Chung feels that it should be negotiated by the administrative head, forwarded to the Council for approval, and then to the Mayor. Council Member Karen Eoff stated her concern that if someone donated $20,000 to a County facility, that the name for the facility would not change but would carry their name as a sponsor. She also inquired about obtaining multiple sponsorships to contribute to a capital improvement project. She questioned what would happen if another sponsor donates the same amount, whether or not the names would just be added or would something be created in order to be uniform in the way of acknowledging these donations. Joseph Kamelamela, Corporation Counsel commented that this bill has a section stating that a sponsorship agreement can be exclusive or non-exclusive. Mr. Yoshimoto commented that it would also depend on the size of the project. He also mentioned that this bill is a great planning tool on many different scales, if the County gets public and private partnerships. In closing, Ms. Lee Loy stated that this bill is a planning tool going forward. If there is a project that needs assistance, it can be identified in the budget and partnerships can be invited in order to build around it. The user, a private entity, a sponsor, and the County would collaborate together and use this as a planning tool and invite those monies and resources in a timely way. Committee Chair Maile David stated that the proposal by Mr. Chung about the multi-layered oversight will bring in more participation. Your Committee on Finance is in accord with the purpose and intent of Bill No. 113, and recommends its passage on first reading. dmm • AYES NOES ABS EX Respectfully submitted, CHUNG X • DAVID x COMMITTEE ON FINANCE EOFF X KANUHA X it, LEE LOY X A O'HARA X ;ir~ - POINDEXTER x MAILE DAVI 0, CHAIR __RICHARDS X FC REPORT NO.: 90 RUGGLES X ADOPTED: MAR 2 8 7 018