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HomeMy WebLinkAboutREP FC 074 2019/10/15 2018-2020 REPORT OF THE COMMITTEE ON FINANCE DATE: October 15, 2019 Re: Comm. No. 522113ill No. 106 PLACE: Council Chambers Hilo, Hawaii TIME: 9:04 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Bill No. 106, reports as follows: Bill No. 106, transmitted by Finance Director Deanna Sako, via Communication No. 522 dated September 27, 2019, amends Ordinance No. 19-74, as amended, relating to public improvements and financing thereof for the fiscal year July 1, 2019 to June 30, 2020. This bill reappropriates lapsed fuel tax funds from past fiscal years by establishing the following program appropriations to the Capital Budget: North Kona Engineering Project ($13,84715); Roadway Projects (Engineering) ($5,253,455.15); Bridge Inspection, Repair and Replacement Program (Engineering) ($1,744,615.01); and Local Road Improvements (Highways) ($1,343,254.62), for a total of$8,385,171.93. Council Member Karen Eoff moved to amend Bill 106 with the contents of Colninunication 522.1 and seconded by Council Member Valerie Poindexter. The vote was taken on the motion to amend Bill 106 with the contents of Comm. 522.1 and passed with seven"ayes." Finance Director Deanna Sako explained Bill 106 was submitted prior to closing the books. An adjustment of$10,251.17 and a typographical error resulted in the submission of Comm. 522.1. Ms. Sako stated that Finance is approaching reappropriating lapsed fuel tax funds differently. Ms. Sako explained instead of appropriating each fuel tax amount as a separate ordinance, it will be combined into one pot of money so that Public Works knows exactly what they have and in which category it would be placed. Council Member Ashley Kierkiewicz noted that this is not the first time there has been a lapse in fuel tax monies. Ms. Sako explained that they appropriate for a couple of years and then they go back and reappropriate as it lapses. Some of the older ones may have been tied up in a contract and once the contract is completed and if there is a negative change order, monies lapse. She noted that oftentimes Finance has trouble tracking down the vendor for final payment and that these are monies left over from other projects that cannot be utilized for future projects. FC Report No. 74 FC-74 Page 2 October 15,2019 Ms. Kierkiewicz asked Ms. Sako what would happen if this bill is not approved, and Ms. Sako stated that monies cannot be spent. Ms. Kierkiewicz then asked Public Works Director David Yamamoto if it would be possible to get more details on budget priorities and timelines for how the monies will be expended. Mr. Yamamoto explained the department has requested Highways Division to provide a schedule to include lapsed funds into their budget for resurfacing projects. At this time, Public Works is waiting for Highway's schedule, tentative cost, and a timeline of expected completion dates. Mr. Yamamoto indicated that once he has the information from Highways, he can then meet with the different districts to discuss project priorities. Council Member Susan Lee Loy questioned Ms. Sako about her comment on contracts not being able to close and giving final payment to vendors. Ms. Sako clarified that on the larger amounts, Public Works accumulates funds to have adequate funds for a match on a Statewide Transportation Improvement Project(STIP)project. Ms. Lee Loy commented that she would like to better understand how these projects are prioritized. Mr. Yamamoto said there is a compiled list of projects that Public Works would like to get on the STIP list,however, it also boils down to how much money the Federal Highways will grant to the County in a given year. Council Member Karen Eoff reflected on something the Governor noted,that STIP money could only be used for road repairs and maintenance at this point and no new capacity roads. Mr. Yamamoto confirmed that understanding, and stated to his knowledge that has not changed, noting that all County road projects are resurfacing and do not add road capacity; if capacity is wanted, the County would be responsible for including it prior to resurfacing the road. Mr. Yamamoto agreed to provide the Council with a list of the STIP roads they currently have prior to the November 6, 2019 Council meeting. Your Conunittee on Finance is in accord with the purpose and intent of Bill No. 106, as amended to Draft 2, and recommends its passage on first reading. dram AYES NOES ABS EX Respectfully submitted, CHUNG X DAVID X COMMITTEE ON FINANCE EOFF X KANEALI`I-KLEINFELDER X KIERKIEWICZ X / LEE LOY X O POINDEXTER x MAILS MEDEIROS DAVID, CHAIR RICHARDS X FC REPORT NO.: 74 VILLEGAS X ADOPTED: NOV 0 6 2019