HomeMy WebLinkAboutState of Hawaii, DLNR, DOBOR - Modernizing Ocean Recreation Management in HI Strategic Action Plan 2019Modernizing
Ocean Recreation
Management in
Hawai`i
Strategic Action
Plan - 2019
Department of Land Department of Land
and Natural Resources
Division of Boating
and Ocean Recreation
Message from the Administrator 2
The Early Years 4
Where We Are Now 5
Correcting Course 9
Strategic Plan Overview 10
Strategic Plan Direction 11
Goal 1: Expand ocean recreation management to meet DOBOR’s statutory mandate 11
Goal 2: Provide world-class boating facilities and services 11
Goal 3: Effectively manage DOBOR’s real property 11
Where We Are Going - Fixing the System 12
The Solution: A Public-Private Partnership Approach 13
The Roadmap to Getting There 20
Phase 1 (2019-2020): Setting the groundwork 20
Phase 2 (2020-2021): Initiating PPP at the first harbors 20
Phase 3 (2022-2024): Assessing the program and building on progress 20
Phase 4 (2025): Implementing the partnership strategy at all DOBOR harbors 21
Conclusion 23
Table of Contents
1 | Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i
Message from the Administrator
When I assumed control over the Department of Land and
Natural Resources’ Division of Boating and Ocean Recreation
(DOBOR) in 2007, I immediately made changes to improve its
service and efficiency. At first the changes were incremental.
In recent years the changes have grown in scope, influence,
and impact to address statewide issues and needs.
Now I feel it is time for the most sweeping, significant set of
changes we have ever pursued, which will change the entire
character of DOBOR. This strategic plan lays out an ambitious
course we have chosen for the foreseeable future. There are
opportunities for everyone to play a part in the transformation
about to take place. We invite you to join us in partnership.
So, to offer a preview of what is to follow, the Division of
Boating and Ocean Recreation (DOBOR) proposes a win-win
strategy to ensure that the small boat harbors are operated at
their maximum potential and at the same time dedicate much
needed staff and resources to the coastal areas program.
As the popularity of ocean recreation has grown, so too has
the need to ensure the safety of users. In recent years, boating
accidents have decreased nationwide, accidents involving
ocean-based activities, such as paddle sports, have increased.
Hawai‘i is not an exception to this national trend.
In order to provide state-of-the-art services to our ocean
enthusiast and recreational boating communities, DOBOR
must devote greater attention to managing ocean recreation.
This is a shift that demands a new, multifaceted, responsive
strategy. The division’s first strategic action plan is an effort
that will help make the transition over the next five years
towards managing ocean recreation more efficiently and
effectively. The plan confronts challenges to making this
vital shift and lays out the critical actions DOBOR will take
to achieve its goal. We welcome input and discussion as we
implement this strategic plan.
Each year, progress towards our goal will be measured and
evaluated. The strategic plan will help the division prioritize
achievable and specific tasks that contribute to the strategic
objectives. In this way, we plan to make ocean recreation in
Hawai‘i, in a myriad of forms, safe and enjoyable for all.
Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i | 2
Edward R. Underwood
Administrator
Division of Boating and Ocean Recreation
Department of Land and Natural Resources
3 | Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i
DOBOR’s strategic plan advocates a public-private partnership
(PPP) approach to harbor management. The plan is divided into
three sections: The introductory section presents a brief overview
and history of DOBOR, the current state of the division, and an
overview of the strategic plan. The following section, “Where We
Are Going,” provides a closer look at the public-private partnership
strategy and how it would enable the division to achieve key goals.
Finally, the third section, “The Roadmap to Getting There,” lays
out the path to implementation.
During the 1991 legislative session, via Act 272, Session Laws
of Hawai‘i, the Legislature transferred the boating and coastal
areas program from the Department of Transportation (DOT)
to the Department of Land and Natural Resources (DLNR).
Out of necessity, the Division of Boating and Ocean Recreation
(DOBOR) was born within DLNR.
DOBOR was made responsible for regulating recreational
and commercial use of State small boat harbors, moorings,
and facilities as well as most activities occurring in and on
State waters. DOBOR’s regulatory scope covers a wide range
of ocean-related matters, from issuance of use permits for
harbors and ocean recreation management areas to regulation
of ocean activities, such as diving, kayaking, surfing, and jet
skiing. These governmental regulatory functions are contained
in thirteen mandates (Hawai‘i Revised Statutes §200-3), which
act as guidelines for serving the State:
1. Managing and administering the ocean-based
recreation and coastal areas programs of the State;
2. Planning, developing, operating, administering,
and maintaining small boat harbors, launching
ramps, and other boating facilities and associated
aids to navigation throughout the State;
3. Developing and administering an ocean recreation
management plan;
4. Administering and operating a vessel registration
system for the State;
5. Regulating the commercial use of State waters and
marine resources, including operations originating
from private marinas;
6. Regulating boat regattas and other ocean water
events;
7. Administering a marine casualty and investigation
program;
8. Assisting in abating air, water, and noise pollution;
9. Conducting public education in boating safety;
10. Administering the boating special fund;
11. Assisting in controlling shoreline erosion;
12. Repairing seawalls and other existing coastal
protective structures under the jurisdiction of the
State; and
13. Removing non-natural obstructions and public
safety hazards from the shoreline, navigable
streams, harbors, channels, and coastal areas of the
State.
DOBOR operations have been funded primarily by the Boating
Special Fund. The Boating Special Fund was established by
the Hawai‘i State Legislature in the early 1970s. The sources
of revenue for the Boating Special Fund include harbor fees,
mooring fees, commercial fees, a portion of the State’s fuel
tax, and lease rent from property under DOBOR’s jurisdiction.
DOBOR also receives a federal grant through the U.S. Coast
Guard (USCG) for the State’s boating safety campaign. The
federal funds are a 50/50 match. Capital improvement projects
are funded through bonds authorized by the Legislature when
possible.
At the time of the division’s transfer from DOT to DLNR,
there was approximately $300 million dollars in deferred
maintenance in the recreational small boat harbors, launch
ramps, and other related facilities. Some progress has been
made, but this list continues to grow as the facilities age.
The management and operation of the State’s boating facilities
is only one of the thirteen mandates associated with the boating
and coastal areas program. Running small boat harbors has
always consumed the majority of DOBOR’s personnel hours
and resources, yet the thirteen statutory mandates require
an equal allocation of resources between boating and ocean
recreation management.
The Early Years
Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i | 4
Revenue generated through DOBOR’s funding sources,
has never been sufficient to keep pace with ever-increasing
demands for maintenance and services.
Ala Wai Small Boat Harbor has undergone substantial
improvements since DLNR assumed management. But it
is always in need of repairs and maintenance. The waters
of the harbor also collect marine debris from the densely
populated community. Damaged infrastructure and polluted
waters detract greatly from the harbor’s appeal. Situated in a
key tourism area, it could offer more to Hawai‘i’s people and
visitors.
The Ala Wai Small Boat Harbor is just one example of a State
small boat harbor that can be better managed in order to protect
the resource sustainably and serve the people of Hawai‘i.
Situated near Ala Moana Center, a premier retail complex that
draws 48 million shopping visitations annually, the Ala Wai
should offer safe and aesthetically pleasing facilities. Yet, the
harbor languishes in disrepair.
Although the Ala Wai stands out as the highest net income-
generating harbor, its earning potential remains untapped.
Like other State harbors, the harbor itself underperforms in
revenue; it is the parking revenues that account for Ala Wai
Small Boat Harbor’s comparative “success.” Transforming
the facility requires a revision of management strategy to
enable the asset to generate greater revenues, a change that is
possible through public-private partnerships.
Where We Are Now
5 | Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i
Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i | 6
7 | Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i
At the core of the problem lies an inefficient harbor
management model. Although harbor management represents
just a single statutory mandate, it depletes a disproportionate
share of DOBOR’s personnel resources. Furthermore,
investing substantial funds and staff into the harbors has not
produced a commensurate return.
Revenue generated by the harbors does not even begin to
offset management and maintenance costs. For the past
several years, harbor management as a whole operated at a net
loss. In fiscal year (FY) 2018, for example, Hawai‘i’s small
boat harbors incurred a net loss of nearly $2 million while
consuming 69% of staff resources.
In fact, over the past five years, an average of as much as 84.2%
of staff resources were allocated towards harbor management.
This drain on staff and funding underlies root causes of
the division’s inability to adequately execute its statutory
mandates.
The coastal areas program has grown immensely over the
years, continually adding to DOBOR’s list of responsibilities
even though DOBOR has no dedicated staff or dedicated
funding to address this mandate.
In FY 2018, harbors made a net loss...
... Yet consumed most
of staff resources
Staff Resources
Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i | 8
In Hawai‘i, on every island, we are never more than an hour
from the ocean. Hawai‘i’s residents and more than nine million
visitors each year use the nearshore waters for swimming,
recreational fishing, surfing, snorkeling and more. Our
boating community is small but diverse. Our nearshore waters
are rich with marine life. Above and below the water, and on
the shores, millions of people use and enjoy Hawai‘i’s oceans.
Almost monthly, a new type of device is being introduced
to our waters or an already present device is being used in a
different way. But the boom in ocean recreation, the weather,
and Hawai‘i’s landscape and culture - the engine that keeps
Hawai‘i’s economy healthy - does not result in a windfall in
funding for DLNR or DOBOR.
By seizing opportunities and changing the way it does business,
DOBOR has slowly adapted and evolved. By 2019, with good
leadership, DOBOR has built a financial base to meet many,
but not all, of its needs. This is quite an achievement in itself,
taking into account DOBOR’s history and origins, but that is
only a small piece of the puzzle compared with what is to
come. The management model that DOBOR inherited at its
inception does not allow the division to fulfill its statutory
mandates and meet its needs – it was and continues to be a
system that shackles the division. But, this failing system also
presents a challenge and an opportunity to embrace change.
Correcting Course
9 | Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i
Strategic Plan Overview
In the absence of increased funding and staff, DOBOR is
working smarter, and more efficiently, to fulfill its mandates
and reach its potential. The division is proposing to shift to
public-private partnership small boat harbor management,
moving staff away from day-to-day direct harbor
management, allowing staff to prioritize the exclusive
governmental functions of ocean recreation management,
rulemaking, oversight, and enforcement. To do this,
DOBOR has developed a Strategic Plan for modernizing and
revitalizing Ocean Recreation Management in Hawai‘i.
The plan will:
• Serve as a forward-looking roadmap that will
guide DOBOR in developing an effective
management model, sustainably managing
the State’s assets, and protecting the natural
resources in the face of a growing visitor economy
and changing environment.
• Communicate DOBOR’s strategic priorities to
decision-makers, staff, and partners effectively, so
that they can gain a clear understanding of these
priorities and can assist with implementation
efforts.
• Identify strategic plan priorities in the State’s
annual budget for DOBOR and DLNR.
• Detail a critical shift in management practices
and philosophy that will help DOBOR fulfill its
intended purpose.
Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i | 10
Strategic Plan Direction
The strategic plan presents a future-oriented vision for the division: to modernize and revitalize ocean recreation management
in Hawai‘i through a strategic redesign of DOBOR’s system for small boat harbor, staff, resource, and asset management.
DOBOR’s vision is aligned with its mission and calls for a shift away from its current practice of directly managing harbors
achieved through a public-private partnership (PPP) asset management strategy. The PPP approach is a proven model that has
demonstrated success for harbors in almost every other jurisdiction in the nation. This shift will allow DOBOR to execute its
State functions more effectively and facilitate efforts to accomplish three main goals:
Goal 1: Expand ocean recreation management to meet
DOBOR’s statutory mandate
Ocean recreation plays a substantial role in Hawai‘i’s
economy, community, and culture. DOBOR needs to balance
its focus between boating and ocean recreation management
by shifting greater attention towards the latter. Expanding
ocean recreation management will allow DOBOR to provide a
safe and enjoyable experience for all residents and visitors on
all State waters, not just within boating harbors and facilities.
Goal 2: Provide world-class boating facilities and services
As a State with a significant number of ocean recreation
enthusiasts and millions of residents and visitors alike
who participate in ocean-based activities, Hawai‘i should
have the facilities and services required to meet the needs
of these populations. State harbors are in desperate need
of maintenance, improvements, and other developments
necessary to adequately meet the expectations of the public.
Goal 3: Effectively manage DOBOR’s real property
The State is underutilizing the opportunity to generate
revenue from State-owned fast lands. Fast lands have
immense commercial development potential to attract greater
foot traffic in harbor areas and yield higher income to the
State. Through this strategic plan, DOBOR can realize a more
efficient management and development scheme that takes
advantage of this opportunity.
11 | Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i
Where We Are Going - Fixing the System
DOBOR’s plan fully leverages the advantages of public-
private partnerships to empower DOBOR to fulfill its statutory
mandates and its ambitions for Hawai‘i’s small boat harbors
and ocean recreation management.
The plan entails achieving balance between boating and
ocean recreation mandates by allocating more resources
to developing excellent and effective ocean recreation
management while continuing to streamline core boating
functions. The division aims to establish a robust public-
private partnership-based system statewide to transform its
recreational harbors into world-class marinas that meet the
needs of millions of residents and visitors. At the same time,
optimization enabled by public-private partnerships will free
DOBOR staff to provide much-needed safety, education and
enforcement for the State’s ocean enthusiasts.
Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i | 12
Public-private partnerships allow the State to access key
advantages private companies have without diminishing the
State’s regulatory authority. In a public-private partnership,
the State contracts harbor management or leases its assets
to a private entity while retaining ownership, governmental
oversight, and control of fees. Public-private partnerships are
different from privatization, in which the State sells its assets,
transferring ownership to a private entity. DOBOR already
has demonstrated the economic viability of the concept on
a small scale with Waikīkī Yacht Club, Hawai‘i Yacht Club,
La Mariana Sailing Club and Ke‘ehi Marine Center. These
four operations pay DOBOR just under $825,000 per year
through long-term leases of fast lands, and manage their
own boating operations on those lands. Now we will attempt
implementation on a larger scale encompassing entire harbor
facilities.
DOBOR is prohibited from privatizing by selling its assets by
State law. Instead, it recognizes that private companies offer
crucial advantages over State government. Since private firms
can seek funding from sources the government may not be able
to access, maintenance, renovations, and other improvements
can be performed more cost effectively. Moreover, because
firms aim to increase their customer base, they are adept at
making business decisions that satisfy consumer needs and can
respond more quickly to change as needs arise. Private firms
can find the most cost-effective and efficient way to manage
a harbor as a business while simultaneously prioritizing
customer satisfaction.
The Solution: A Public-Private Partnership Approach
Public-private partnerships hold the key to a strategic
redesign that enables harbors to operate at their maximum
potential while staff engage in managing ocean recreation.
Public-private harbor management, a proven approach that
has demonstrated success for jurisdictions across the country,
offers the optimal approach.
States that have partnered with private entities have found
that private organizations can conduct harbor management
successfully and efficiently. For these states, partnerships
have brought in capital for much-needed infrastructure
development, optimized revenue to honor the public interest,
and freed up resources to allocate towards other needs,
advantages that Hawai‘i direly needs.
Public-private partnerships allow the State
access to the advantages private companies
offer WITHOUT privatization.
13 | Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i
Private companies provide successful harbor
management solutions across the US.
Across the United States, governments have connected
with private entities to increase revenue, provide improved
management and infrastructure, and ensure that State
resources remain focused on critical governmental functions.
While Hawai‘i is unique in that it has not fully embraced
this proven strategy, it has recognized the potential benefits
of allying with private companies. Harbor management by
private entities is not a new idea: in 1993, the Office of State
Planning pointed out that “[p]rivate enterprise can play a large
role in providing necessary capital” for boating infrastructure.
The benefits of managing harbor assets in conjunction with
private entities were highlighted in a recent survey. In 2017,
the Hawai‘i Coral Reef Initiative (HCRI) conducted a
national survey on harbor management practices, consulting
and interviewing ten governments in seven states. The survey
found that only 1% of the harbors surveyed nationally were
state-owned. States contracted harbor management out to
private companies either fully or piecemeal, by service or
function. These government entities have found working with
private companies to be the best way to:
• Manage harbor assets efficiently in terms of
revenue;
• Shift limited staff resources to areas where they
are really needed (i.e. for rule-making,
oversight, enforcement, and safety education);
• Develop infrastructure by partnering with private
entities.
Interviewees included Chicago Park District, Illinois; New
York; Titusville, Florida; and Kewalo Basin, Hawai‘i.
Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i | 14
Chicago Park District, IL
Chicago Park District first turned to a private company to
manage its ten harbors and 6,000 boat accommodations
in 1995. Since partnering with Westrec Marinas of Encino,
California, Chicago Park District has not looked back. The
largest municipal system of harbors in the U.S., Chicago Park
District Harbors offers sophisticated amenities for locals and
visitors, including fueling facilities and floating docks. Over
the past few years, these popular harbors have had occupancy
rates greater than 98%. In the two decades following Chicago
Park District’s implementation of this management strategy,
net revenues increased from $0 to $13.5 million.
New York
Like Chicago Park District, New York State has enjoyed greater
revenues through partnering with a private management
company. New York has the ninth highest boating community
in the US, with over 400,000 registered motorized vessels and
roughly 300,000 non-motorized vessels. The State has always
bid out management of its harbors to private companies. One
of its marinas plans to bring in as much as $10 million over
the 25-year rental period. The harbor development company
that operates and maintains New York’s Buffalo River Marina
Complex will invest that revenue in harbor development.
15 | Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i
Titusville, FL
After contracting a private company to manage its harbors,
the City of Titusville also experienced a dramatic increase in
revenues. Occupancy increased from 50% to 60% to 96%.
This partnership enabled Titusville to overcome its debt of
$300,000 and generate $120,000 in positive working capital.
Managed and operated by F3 Marina, an industry leader,
Titusville Marina provides full-service amenities that cater
to boaters’ needs. Among its many sophisticated features are
fixed and floating docks, a store that sells boating equipment
and cleaning gear, a fuel dispensing station, a laundry area,
and WiFi throughout the facility.
Kewalo Basin, HI
Through its successful implementation of a public-private
partnership (PPP) strategy, Kewalo Harbor on O‘ahu has
demonstrated that this approach can provide successful,
effective harbor management solutions and infrastructure
development to Hawai‘i’s harbors. Under the Hawai‘i
Community Development Authority’s (HCDA) jurisdiction,
Kewalo Basin is leased to the Howard Hughes Corporation
(HHC) which contracts harbor management to Almar Marina
Management Company. The former brings in capital for
infrastructure development, while the latter manages the
facilities.
HCDA has a very different mandate from that of DLNR/
DOBOR. HRS §206E granted HCDA the power to develop
areas of Honolulu and leverage public-private monies. In the
case of Kewalo Basin, this authority allowed HCDA to attract
a private funder (HHC) to propose capital improvements.
The understanding at work here is that fair market rent set
by appraisal will attract a business entity, such as HHC, to
conduct the improvements. Currently, much of Kewalo Basin
is slated for or undergoing planned improvements that will
be funded by HHC. In these types of partnerships, because
capital improvement funds come from private partners, State
funds requested from the Legislature can stretch further.
Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i | 16
Kewalo Basin demonstrates that the PPP
model can work in Hawai‘i applied to an entire
harbor facility and that large corporations are
interested in investing in the islands.
As the HCRI national survey and the success of Kewalo
Basin clearly indicate, public-private partnerships offer the
optimal harbor management solution Hawai‘i needs. For this
reason, PPPs form the crux of DOBOR’s plan to revitalize a
dysfunctional harbor system. These collaborative arrangements
will allow DOBOR to replace outmoded, ineffective practices
with modern, proven approaches, while the Boating and Ocean
Recreation Division preserves ownership of its assets and the
Board of Land and Natural Resources (BLNR) retains control
over fees.
When DOBOR enters into partnerships with private companies
on a larger scale than it has in the past, its small boat harbors
can be brought up to par with world-class marinas and other
successful harbors throughout the country. This management
scheme will produce better services, a more satisfied boating
community, increased services, and increased capital and
revenue for improvements, and, most importantly, enable the
State to responsibly steward its assets and resources.
A model of successful public-private partnership in Hawai‘i,
beautiful Kewalo Harbor will enjoy streamlined management
while offering world-class facilities through partnership with
Howard Hughes Corporation.
Kewalo Harbor fronts the Ward Village area, an integrated
commercial and residential setting not far from Ala Moana
Shopping Center. Selected by HCDA in 2014 for a lease
agreement through a competitive process, the Howard
Hughes Corporation (HHC) embarked on its improvement
and modernization project for Kewalo Basin in 2015. Howard
Hughes Corporation is improving harbor facilities, providing
better safety and security services, and upgrading docks.
Howard Hughes Corporation also aims to increase foot traffic
to Kewalo Harbor via strategic marketing.
In the years to come, boaters can look forward to state-of-
the art infrastructure and services. Other objectives include
greater management efficiency and higher numbers of
moored vessels. The future-oriented improvement plan also
supports fishing, recreational vessel and tour activities while
recognizing the importance of Kewalo as a valuable resource
and aiming to maintain Kewalo Basin for the community.
Through the PPP strategy, Kewalo Harbor benefits from
investments to improve infrastructure while the State retains
regulatory oversight of the asset. This management model
serves all parties: the State is free to focus on providing
exclusive governmental functions, boaters gain improved
facilities and services, and the resource is responsibly
stewarded, maintaining the public trust.
17 | Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i
Through leveraging the advantages of public-private partnerships, DOBOR’s new management model supports the division
in fulfilling its duty to better serve its ocean recreation management and boating purposes. The vision for DOBOR set forth in
this strategic plan supports three goals:
1. Expand ocean recreation management to meet DOBOR’s statutory mandate;
2. Provide world-class boating facilities and services;
3. Effectively manage DOBOR’s real property.
Each goal translates the main vision into specific actions that move this plan forward.
Goal 1: Expand ocean recreation management to meet
DOBOR’s statutory mandate
Through implementing the PPP strategy, DOBOR will free
existing staff that it will then shift toward ocean recreation
management tasks to balance its allocation of resources
between its two primary statutory mandates. Contracting
resource-intensive harbor management responsibilities
to private partners will enable DOBOR to expand ocean
recreation management and fulfill the mandate without needing
to increase staff numbers. This rebalancing will empower
staff to provide critical State functions for the broader ocean-
user community. DOBOR will be able to serve more ocean
enthusiasts through greater ocean recreation management
planning, oversight, education, and enforcement, as well as
meet the needs of more ocean users and recreational boaters
in the State.
Goal 2: Provide world-class boating
By implementing the public-private partnership strategy and
transitioning to more of an asset management model, DOBOR
will not only perform necessary repairs and improvements
to its small boat harbors, but again, transform them into
world-class marinas. By maintaining a degree of engineering
oversight in the development process, the harbors can be
transformed in a way that is sensitive to community needs and
concerns.
Goal 3: Effectively manage DOBOR’s real property
Through the PPP model, DOBOR will streamline current
operations and effectively manage its real property. DOBOR
aims to transfer duties irrelevant to primary State functions
to private partners, allowing the division to more fully utilize
its assets by further developing its fast lands to generate
revenue. Because the fast lands could bring in substantive
financial resources, capitalizing on the potential of these
assets presents a significant opportunity to increase revenue
for core operations.
Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i | 18
Within its fast lands, DOBOR has identified two areas
with considerable revenue potential, pictured in the figure
below. The figure shows an overhead view of the Ala Wai
Small Boat Harbor and highlights the areas where the State
generates money. The fast lands are outlined in yellow and
are accompanied by a text indicator detailing the amount
of revenue the land generated, based on DOBOR income
statements for FY 2018. One opportunity is to enhance the
fast lands that are currently under-utilized. Since these parcels
can potentially generate substantial income for the State,
cultivating the commercial development of these assets can
add greater value. Another is to take advantage of the vacant
lot next to the Hawaii Prince Hotel. This site presents an
important opportunity to attract businesses that will draw
more foot traffic and encourage greater economic activity.
Once harbors under its jurisdiction are leased to companies
in the partnership model, DOBOR will be able to work on
optimizing revenue to the State by making the best use of its
fast lands. This strategy presents a far more efficient means
to yield significant revenue than expending resources on
deferred maintenance for harbors operating at a net loss.
Ala Wai Small Boat Harbor Revenue Sources
19 | Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i
Fast Lands
(includes submerged parcels)
Free Parking Paid Parking
Slip Fees
LegendTotal Revenue generated from
Fast Lands in FY2018 = $1,914,816
The Roadmap to Getting There
DOBOR’s strategic plan is divided into four phases. It begins with a preparatory stage, continues with an initial implementation
phase followed by rigorous assessment, and culminates with full implementation of the PPP strategy and the achievement
of all three of DOBOR’s goals. DOBOR looks forward to establishing a well-designed system that enables effective harbor
management and developing balanced staff allocation between boating and ocean recreation management, providing world-
class boating services, and optimizing asset revenues by 2025.
Phase 1 (2019-2020): Setting the groundwork
During the initial phase, DOBOR will make all necessary
preparations to implement PPPs at its boating facilities.
Currently, HRS Chapter 200 authorizes DOBOR to lease
fast and submerged lands at the Ala Wai Small Boat Harbor.
DOBOR will seek to clarify its authority to enter into PPPs
at small boat harbors statewide through legislative action.
DOBOR will then be able to move forward with a statewide
PPP plan. DOBOR will identify criteria and management
candidates and determine metrics to gauge performance.
DOBOR will also identify revenue-generating services to be
contracted out and outline tasks associated with contracting
these services to private companies. At this time, DOBOR will
also release requests for proposals (RFPs) for management
of each of its harbors. Initial groundwork to rebalance
staff between boating and ocean recreation management
by apportioning greater staff resources toward the latter
will also commence during this stage. The division will
develop a staffing plan for adjusting staff duties to achieve
a balance between harbor management and ocean recreation
management tasks. DOBOR will determine prioritization of
ocean recreation management tasks.
Phase 2 (2020-2021): Initiating PPP at the first harbors
Once the groundwork has been laid, DOBOR will begin
implementing its newly designed public-private partnership
strategy. Through the RFP process initiated in 2019, DOBOR
will select private entities with which to partner and issue
them long-term leases to attract funds for improvement
projects. The selected companies will perform harbor
management, maintenance, and improvement project tasks
under the division’s supervision. During this phase, DOBOR
will also formulate plans to optimize any remaining harbor
revenue-generating services. This process will continue until
all of DOBOR’s facilities are being managed through a PPP
and are optimized to maximize returns. DOBOR will submit
a report on its progress to the Legislature by the end of 2021.
Phase 3 (2022-2024): Assessing the program and building
on progress
In 2022, DOBOR will begin evaluating the PPP program,
assess services, revenue, cost, and maintenance. Assessment
data will guide adjustments that will be made to the PPP-
based management strategy in the future. At the close of 2024,
DOBOR will submit a report on progress to the Legislature.
Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i | 20
Phase 4 (2025): Implementing the partnership strategy at
all DOBOR harbors
Following careful preparation and assessment during the
first three phases, the fourth stage calls for establishment of
a rigorously evaluated, robust public-private partnership-
based management system across all harbors under DOBOR’s
jurisdiction. DOBOR will advance progress toward its goal of
statewide PPP harbor management by continually adding any
remaining facilities and fast lands to the program, performing
assessment, and making adjustments aimed at optimization.
During this phase, DOBOR will complete optimization of
all relevant services. DOBOR will finalize staffing and finish
equally allocating staff between boating and ocean recreation
management duties and attend to real property management
tasks to optimize revenue from fast lands.
The course charted by this strategic plan culminates with this
concluding phase, at which point maximum advantages of
the partnership-based system are realized, maintained, and
improved upon as necessary.
Developed after extensive dialog with marina management
companies to obtain feedback, the proposed system adapts
strategies that have been used successfully in other, similar
programs to address the constraints DOBOR must grapple
with. DOBOR proposes this public-private partnership-based
harbor management program with full confidence that it
will be successful, bringing the division closer to its goal of
modernizing and revitalizing ocean recreation management in
Hawai‘i.
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Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i | 22
• Clarify statutory authority to give DOBOR ability
to enter into public-private partnerships (PPP)
2020
• Legislature approves PPP at first harbor(s)
• Release requests for proposals (RFPs)
2020-2021
• Initiate PPP at first harbor(s)
• Submit report to Legislature on progress
2022-2024
• Assess first PPP harbors; services, revenue, cost,
maintenance
• Submit report to Legislature on progress
2025
• Modify PPP program as necessary
• Implement PPP at all DOBOR harbors
2019
DOBOR’s harbors of tomorrow should be clean, modern and
well-maintained. They should serve as true community centers
of boating and ocean recreation activity in the islands and
gateways to access a rich resource for residents and visitors
alike. We have an opportunity to create a space where people
congregate, meet friends and family, enjoy the ocean waters
and watch the sun rise and set. When sailors arrive in Hawai‘i
and when residents visit our facilities, our harbors must meet
or exceed expectations, offer world-class amenities, activities
and resources. They should be, and can be, inviting.
The path to developing world-class facilities is very long
and uncertain with DOBOR’s current system of direct
governmental harbor management. The current management
strategy for the State small boat harbors that has been in place
since they were first constructed has proven to be ineffective
and is now outdated. In order to accomplish our goal to offer
better services and modernize the facilities, DOBOR needs
to enter into collaborations with the private sector and the
community to make this vision a reality.
The coastal areas program requires DOBOR to manage all
activities taking place in state waters from the shoreline and
three miles out to sea. This includes regulating commercial
and recreational vessel activities, maintaining aids to
navigation, and assisting with protecting marine resources.
However, DOBOR does not have a dedicated funding source
or dedicated staff to carry out this mandate.
A win-win situation is created by entering into different
management scenarios that will allow for more resources and
staff time to be allocated to the coastal areas program while
ensuring that the small boat harbors are maintained and by
offering quality service to the community and visitors alike.
We invite you all to join in this important transition for
Hawai‘i’s ocean community to rejuvenate our harbors and
coastal areas program in Hawai‘i.
It is up to us all to build on the rich and colorful ocean-going
tradition of our host culture and re-establish Hawai`i as a place
where our people can safely enjoy and thrive in our ocean, a
magnet for international boat traffic and a hub for adventurers
crisscrossing the Pacific.
Mahalo
Conclusion
23 | Modernizing and Revitalizing Ocean Recreation Management in Hawai‘i