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HomeMy WebLinkAbout2008-02-11 Public Access, Open Space and Natural Resources Preservation Commission MinutesHAWAII COUNTY PUBLIC ACCESS, OPEN SPACE AND NATURAL RESOURCES PRESERVATION COMMISSION MINUTES - REGULAR SESSION February 11, 2008 Department of Liquor Control Conference Room 101 Aupuni Street, Suite 230 Hilo, Hawaii 96720 Present: Chair Hannah Springer Vice -Chair Paul Campbell Commissioner E. Kalani Flores Commissioner Kim Garcia Commissioner Bill Gilmartin Commissioner Sarah Moon Commissioner Laura Schuster Absent: Commissioner Kenneth Kaneshiro Others Present: Amy Self, Deputy Corporation Counsel Harry Yada, Property Manager, Finance Alexandra Kelepolo, Clerk III, Finance CALL TO ORDER The meeting was called to order by Chair Hannah Springer at 10:05 a.m. Ms. Springer then welcomed Ms. Sarah Moon to the Commission who will be representing District 4 (South Hilo). Ms. Self requested to move "statements from the public on agenda items" first before "discussion with Mayor Harry Kim." STATEMENTS FROM THE PUBLIC ON AGENDA ITEMS DEBBIE HECHT Ms. Hecht expressed her disappointment that Mayor Kim was not present. She spoke on behalf of Puapua`a, a property on the "Top 4" priority list. She noted that it's a significant cultural site, approximately 12.5 acres, which includes a heiau and burials. The property was purchased by the Betsill Brothers in 2006 for 16 million to originally develop into 35 home sites and is currently on the market to be sold for 13.5 million. She added that it's the first property approved by the Hawaii County Council (Council) for acquisition and stressed that it's one of the few vacant parcels left on Ali`i Drive which needs to be preserved. -1- Ms. Springer asked Ms. Hecht to direct her comments and questions to the Council and Mayor since it's no longer in the Commission's hands. Mr. Flores commented that he was aware that Resolution 404 -06 was approved for preservation and protection purposes, not acquisition. Ms. Hecht replied that this property needs a "champion" and the resolution was written for acquisition along with a conservation easement to preserve the cultural sites. Ms. Springer suggested that Ms. Hecht write a letter to the Mayor since Puapua`a is included in the 2007 Annual Report to the Mayor. JANICE PALMA - GLENNIE Ms. Palma- Glennie also expressed her disappointment that Mayor Kim was not present; however, she thanked the Commission and the Mayor for helping to preserve and protect open space. As a member of the Sierra Club and Kona Community Development Plan Steering Committee, she spoke on behalf of lands in North Kona referred to as `O`oma II. She stressed on the need to maintain its conservation designation for meaningful land use protection from harmful development. She asked that the monies in the open space fund be used for acquisition purposes only and not be diverted for maintenance or management. In addition, she provided to the Commission, copies of numerous letters and e -mails of support along with petitions of hundreds of signatures opposing any development at `O`oma II. She spoke passionately and made a plea to the Commission to help keep `O`.oma II in its present natural condition. She concluded by saying the community needs some "plain old fashioned easy to understand aloha driven victories in which Hawaii's people, culture and natural environment get to co -exist and thrive." Mr. Campbell expressed his disappointment over Mayor Kim not being present earlier to hear Ms. Hecht and Ms. Palma - Glennie's testimonies. Mr. Gilmartin asked Ms. Palma - Glennie what she wants the Commission to do since the property was already on the list. She replied by saying that her motivation was when the County was considering a 1000 foot setback for this coastal strip of land. Mr. Gilmartin told Ms. Palma - Glennie that it's now out of the Commission's hands, and that any questions should be addressed to the Mayor and the Council. Ms. Garcia expressed that she is also very passionate about `O`oma II. She stressed that if citizens are not vigilant the developers will provide very limited access to the public. -2- DISCUSSION WITH MAYOR HARRY HIM ON THE 2007 ANNUAL REPORT & PRIORITIZED LIST Mayor Harry Kim apologized to Ms. Hecht and Ms. Palma- Glennie for not being here earlier as he was not made aware that his presence was requested. In regards to the County's position, the procedures established was that the Commission makes their recommendations in the Annual Report to the Mayor which is then circulated to various County agencies for comments. These comments, if any, are then forwarded to Council. In regards to some recommendations within the Annual Report, the County's administrative responsibility is that of "fiscal responsibility" first. He commented that no one minds disagreements in regards to position of responsibility, it is important that everyone is cautious about accuracy. Mayor Kim elaborated on two properties in North Kona, `O`oma and Kohanaiki. In regards to Kohanaiki, there was no "bad guy," the community worked together with the developer as the County played the facilitator to come to a reasonable agreement. He emphasized that the people of Hawaii abused the property for years littering it with rubbish, abandoned vehicles, etc. The developers were willing to give the County of Hawaii 100 percent of the coastline and agreed to pay for 100 percent of the clean-up, toilets, roads, showers, camping grounds along with 1/3 of the maintenance costs of the area until it was turned over as a County park. He stated that from the first day of his administration, the County's goal was that fifteen miles of coastline in Kona would belong to the people in perpetuity. In the situation of `O`oma, the property owners are still in the planning process. They are working on how their development can change for the residents that live there. He expressed how elated he is that they've changed the whole concept of their design to include housing, pathways, walkways and a minimum of 1200 feet of coastline to accommodate the people. Mayor Kim then stressed on the tremendous maintenance problem the County has in regards to parks. As an example he spoke about Pohoiki which was an on -going project since 1991 and only recently had been completed. He told the Commission that he's obligated to follow the laws of the country and that they too will be faced with opposition and disappointments. It costs a lot of time and money and many hours of help from community volunteers. He then thanked the Commission for all their hard work and stressed that the County needs their help to do the work that the community wants them to do. Whether it is to clean, maintain, or restore the property, what good is ownership if you can't manage it. Ms. Garcia mentioned that the committee within the Commission is working on finding alternate funding sources as they have recognized the deficits. -3- Ms. Springer then asked Ms. Self if she had any comments on situations where property owners have no intention to sell and ask that their property is removed from consideration. Ms. Self mentioned that in the process of finalizing their 2007 Annual Report, a letter was received requesting that a property be removed from the list of which it was too late. However, in the future they should indicate in their report as to not mislead the Mayor or Council. Mr. Flores asked Mr. Kim if the County has any suggestions on how to sort the lists and ways to handle priority order. Mr. Kim replied that whatever changes they make to the list needs to be explained and identified. The format of purchase lies with the Council who has the final authority. Mr. Kim then asked the Commission to not put properties on the list that can't be purchased. It's very misleading as the community does not understand the process. He added that it is very difficult to condemn properties strictly for park use or community benefits. He doesn't want to see a property purchased and left alone to become "trash cans." Mr. Campbell noted that the Commission represents the public and they should not remove properties from the list regardless of whether the landowners have no intentions to sell. Mr. Kim asked that out of respect for everyone along with landowners, the Commission explain in detail to the community, the process of how everything works so they understand. APPROVAL OF MINUTES Commissioner Flores moved that approval of the minutes of January 14, 2008 regular session is deferred to the next meeting on March 10, 2008. Seconded by Vice -Chair Campbell and carried unanimously by voice vote. WRITTEN COMMUNICATION Communication No. 08 -001: Letter to Council Chairman Pete Hoffman and Members of the County Council from Mayor Harry Kim, re: Nomination of Sarah B. Moon to the County of Hawaii Public Access, Open Space and Natural Resources Preservation Commission for Council District 4. Communication No. 08 -002: Letter from Debbie Hecht, re: Open Space Bond and Parklands Foundation. Ms. Hecht told the Commission that it's a mistake and betrayal of voter's trust to use a portion of the open space fund for management plans. This will diminish the funds and nothing will be left for acquisitions. She suggested that since the Council is working on their budget that they include additional money under Parks and Recreation (P &R) for management. Another alternative could be establishment of a private parklands foundation by working with community based ohana or a friend of the park group responsible for each property. It could be a liaison between the groups, ohana and County and also provide continuity when the administration changes hands. She noted that this is a great opportunity and mentioned that property values are dropping along with the bond rate which is down to about 4 %. Within the past three years, over 200 communities nationwide have passed bonds. She stressed that if the Commission recommend to the Council to use a portion of the 2% fund for management, they will be changing and amending the law that residents just voted on. She strongly opposes this idea. Mr. Campbell asked how much will it cost for bonds. Ms. Hecht replied that it will cost approximately 100 —150 million for every 100,000 of valuation. However, if divided among all properties on Hawaii island it would cost about $30.00 $50.00 monthly for each property owner. Mr. Gilmartin asked how the bond works in the long term. Ms. Hecht replied that it's like a mortgage, with an interest rate over a term of years, principal and interest. It can also be retired early if there's a surplus in funds. Ms. Garcia then invited Ms. Hecht to attend one of their sub - committee meetings to speak more on bonds. (Ms. Deanna Sako provided to the Commission a handout responding to Ms. Hecht's questions presented at the meeting in January regarding the proposal of open space bonds). Ms. Sako, Controller for the County of Hawaii summarized the County's responses outlined in the handout. She noted that the maximum limit of bonds that the County can float is 3.4 billion of which 300 million is outstanding and another 47 million have been approved but not yet issued. The County cannot sustain 3.4 billion dollars, it's not fiscally prudent. The combined amount of bonds issued by the County is approximately 346,500,000 and the current rate for General Obligation bonds is at 4.75 %. In regards to the County floating 100 million dollar worth of bonds the cost would be approximately $35.70 for every 100,000 of assessed value. Mr. Gilmartin asked what the County has bonds for. Ms. Sako replied that the bond proceeds have been used for roads, buildings, sewer infrastructure and land projects. The bonds have rules and conditions which must be met and cannot be used for maintenance. The County is trying to get federal funding for projects of which all is capital. Ms. Sako emphasized that the priority with the Council for issuing bonds has been for legal mandates i.e. Environmental Protection Agency cesspool conversions, health and safety, and Police and Fire station sites. -5- Ms. Sako noted that there's a key timing issue to predict how much will be spent and that the need to use the bonds has to be there or else the County will have to pay interest. She added that bonds are refunded all the time based on a financial analysis depending on the changing of interest rates which are constantly monitored. Ms. Sako mentioned that there is no plan to accelerate payoffs early, and all current debt is scheduled to be paid off by 2040. She further noted that most parcels are assessed at 100% of their market value, of course with exceptions and are re- assessed annually as of January 1St. The assessment would be based on the previous year's sales and cost factors. The median assessed value of a residential property is 106,000 and the median effective tax rate is $6.32 per $1,000. The average assessed value of a residential property is 195,609 and the average effective tax rate is $7.24 per $1,000. Mr. Flores asked if the existing bonds are financed by Real Property Tax office. Ms. Sako replied yes. Communication No. 08 -003: Letter to Council Chairman Pete Hoffman and Members of the County Council from Mayor Harry Kim, re: Nomination of Terri R. Markovich to the County of Hawaii Public Access, Open Space and Natural Resources Preservation Commission for Council District 1. Chair Springer noted that these communications have been received and will be filed DEPARTMENT OF FINANCE REPORT Mr. Yada announced that escrow has closed on the County's second purchase of 234 acres in Kawa`a formerly owned by Marcia Johnson for 1.92 million. In regards to the Olson properties in Kawa`a, the County has an accepted offer letter and are still awaiting to hear on the status of grants from the U.S. Fish and Wildlife and the State Legacy Land Grant. At this time the approximate balance in the open space fund is 3.27 million in addition to 1.2 million to be reimbursed from the State for the purchase of Kawa`a. Once the purchase of the Olson properties are completed there won't be much left in the fund to entertain anymore acquisitions until funds can be replenished. Ms. Garcia stressed that if there's not enough money the focus should be on public access. OFFICE OF THE CORPORATION COUNSEL'S REPORT Ms. Self explained why she moved up the public testimony on the agenda before the Mayor's discussion with the Commission. She noted that this was a result of Ms. Hecht's inquiry stating that it would be a violation of Sunshine Law if public testimony was not allowed before M discussion. This was confirmed in a footnote when she researched an OIP (Office of Information Practices) opinion. In lieu of the situation, she told the Commission that the Mayor was not aware that he needed to be there early to listen to public testimony. Ms. Springer then asked Mr. Campbell to draft a letter of apology to the Mayor. Ms. Self also added that the Council has the authority to approve properties for condemnation; however there are no legal problems for landowners by having properties on the list. Recess: 11:58 a.m. Reconvened. 12: 07 p.m. CHAIRPERSON'S REPORT Chair Springer commented on what Mayor Kim mentioned and stressed that in the future the Commission have clear disclosure, good explanation and ample discussion to the public. COMMITTEE REPORT Ms. Garcia noted that she will be meeting with Ms. Jeannie Navarro on February 19 in Kona to discuss funding possibilities. She invited Mr. Campbell and Ms. Schuster to also attend. She added that Ms. Navarro can possibly come and talk to the Commission in April regarding funding sources. Ms. Schuster announced that she will be submitting her resignation effective February 11, 2008 and may be able to attend the April Commission meeting if her seat has not yet been filled. UNFINISHED BUSINESS Continue discussing concerns of the Commission for possible use of the Open Space Fund for maintenance and management of properties acquired with the Open Space Fund, which would require an amendment of the Hawaii County Code by the County Council Ms. Springer asked Ms. Self for her opinion on the Commission testifying before the Council in regards to Ms. Hecht's request to add monies into P &R's budget for maintenance. Ms. Self replied that since the Commission is strictly advisory they should address the Mayor and mentioned that it's far beyond their authority to go to Council. If they decide to write a recommendation to the Mayor it should not be specific to one department. Mr. Gilmartin suggested that some members of the Commission be present to answer questions and /or address concerns when the Mayor presents his recommendations to the Council. Ms. Self -7- commented that there needs to be a motion to authorize someone on the Commission to speak on behalf of them, if not they can speak as an individual. Ms. Schuster added that the Commission writes a letter to the Mayor addressing their concerns in regards to management and maintenance. Recess 12:33 p.m. Reconvened 12:57p.m. Ms. Springer summarized that the Commission is looking at ways that they can have someone from the Commission present to answer questions at the Council meeting when he presents the Annual Report. Mr. Campbell added that he is not in favor of amending the code. Ms. Garcia added that she too feels that the open space fund should be kept for acquisitions and that the Commission considers alternative funding. Ms. Springer suggested that they take this year to focus more on processes of the Commission and asked the sub - committee to start working on funding sources. Ms. Garcia asked if it's feasible to talk to grant writers from the County. Mr. Yada told her that Lea Hong of Trust for Public Lands (TPL) has been instrumental in helping the County put together grant applications. Mr. Yada added that TPL and land trusts have a good handle on funding and the Commission needs to focus on resources needed for individual properties to identify potential sources of funding. Mr. Flores suggested that they schedule a meeting with the Council after the report is submitted to give them some time to review first. Ms. Springer asked Mr. Yada if he attends the Council meetings and if he's present can he answer questions. Mr. Yada replied yes. Motion: Commissioner Flores moved to have Mr. Yada present at the Council meeting to answer questions to the best of his ability and bring back questions to the Commission, if any. Seconded by Commissioner Gilmartin. All members voted aye, motion carried. Ms. Springer then talked about submitting a letter to the Mayor that includes alternative funding sources. Mr. Campbell stressed the urgency of this since the budget process has already started. Mr. Yada added that it might be too late since they're already in the middle of the budget. Mr. Flores noted that this may be too premature and feels the Commission needs to give specifics in detail saying what is necessary. Mr. Yada added that since the Commission doesn't know what the cost of maintenance will be, the key issue is to come up with a management plan. -8- Ms. Self commented that the public is not aware of how the processes work and the Commission should be descript in detail and provide accurate information about anything that's submitted to the Mayor and the Council. Mr. Yada told the Commission not to assume that P &R will take over management. He stressed that if this issue does not get addressed it will reflect badly on the Commission on the results of the property after it's acquired. Ms. Moon suggested that the community get involved for clean-up and maintenance of the properties. • Continue discussing amending the Commission's rules and adoption of the rules pursuant to Chapter 91 of the Hawaii Revised Statutes (Commission to discuss at the next meeting on Monday, March 10, 2008.) • Continue discussing scheduling and strategies for 2008 (Commission to discuss access easements, conservation easements) (Commission discussed under first bullet in "Unfinished Business') ANNOUCEMENTS The next meeting is scheduled for Monday, March 10, 2008, 10:00 a.m., at the Department of Liquor Control Conference Room, 75 -5722 Hanama Place, Suite 1107, Kailua -Kona, Hawaii. ADJOURNMENT Chair Springer adjourned the meeting at 1:44 p.m. Respectfully submitted, (&' Alexandra Kele p olo C k III