Loading...
HomeMy WebLinkAboutComm No 0003.01.18 - Testimony - Ad Hoc - PONC fund and Maintenance fundFrom: Debbie H <hecht.deb@gmail.com> Sent: Thursday, November 8, 2018 1:34 PM To: Charter Commission Subject: 2% Land Fund packet of information Attachments: 2% Land Fund History and Success 10.30.2018.docx; 2% Land Fund Aquisition Status Report 5.2018.pdf; Comments on Hawai'I County Charter Commission's Ad Hoc Committee Report.docx; HAWAII COUNTY CHARTER- 2% Land Fund proposed changes 11.3.2018 Section 10.doc; Hawaii County Charter 2% Lands Maintenance fund with proposed changes 11.3.doc PLEASE FORWARD TO ALL COMMISSIONERS AND INCLUDE AS PART OF THE PUBLIC RECORD Aloha Commissioners- ! will be bringing packets of this information to the Charter Commission meeting tomorrow. There are multiple links in each of these documents that you might find useful for future reference. There are some misconceptions in the the Ad Hoc Committee's Report, I hope we can give you the information you need to fulfill your mission. Please call or email with any questions I look forward to meeting you all tomorrow in person and working on charter amendments that will fulfill the mandate of 63% of voters who voted YES on the Land Fund 3 times but strengthening the 2% Land Fund program. Mahalo, Debbie Hecht, Campaign Coordinator Save Our Lands Citizen's Committee since 2005 The attached documents are: 1. 2% Land Fund History and Success 2. Acquisition Status Report for the 2% Land Fund (14 properties since 2006) 3. Comments on the Charter commission's 2% Land Fund Ad Hoc Committee's Report 4. Proposed Charter Amendment to the 2% Land Fund 5. Proposed Charter Amendment to the 1/4% Maintenance Fund Comm. No. 3.1.18 2% LAND FUND: History, Process and Successes building KULEANA COMMUNITIES Hawai'i County's 2% Land Fund Report 11.1.2018 These are properties acquired by the 2% Land Fund 11011 1101, uu ;0113& 1 111 S e.- ' i si trt . 111114'11Suu0 111tutt0 1000'0 N1,13312, uta° ra;Rat r IH ,111041,4,444 v 1111104 113000,30, d fjul -r '1, phi tittANANK V tt`V1'll1111311210 NiCAKIA NOIR111111 11, aka fit itt, f ,,314n: 1014411001 11101142 11413 14, 2 glr 1115u Kiii1kuutA Kalituot A MESSAGE FROM DEBBIE HECHT: It has been my great honor to be Campaign Coordinator for the 2% Land Fund over the last 13 years. I have learned that kuleana communities are built around our island's treasured places. Building community is the "gold" and the greatest benefit that has grown out of the struggles for the 2% Land Fund. Out of this love of the land has grown non-profit community groups that are volunteering their time and using their own money to care for these special places. To see the 2017 Report to the Mayor by the Public Access and Open Space Commission (PONC), which lists this year's top 10 properties recommended for conservation go to: http://records.co.hawaii.hi.us/weblink/1/edoc/91477/2017-12- 28%20(2017%2OPONC%20Annual%20Report%20to%20the%20Mavor).pdf THE 2% LAND FUND WAS ON THE BALLOT AS A CHARTER AMENDMENT. In 2012, Debbie Hecht and Council member Brenda Ford added an important clause that runs with the land as a Deed Restriction, which says: "This property (or easement) was acquired with money from the Public Access, Open Space and Natural Resources Preservation Fund. It shall be held in perpetuity for the use and enjoyment of the people of Hawaii County and may not be sold, mortgaged, traded or transferred in any way." Council Member Brenda Ford and I thought this was very important. It takes several years before a property is proposed by citizens, gets through the Public Access and Open Space Commission and is funded and acquired by the County with our tax dollars. The groups that propose these lands work hard to bring them forward and hard to care for them after they are acquired, frequently using their own money, their time and hard work to improve these properties. These properties are purchased with citizen's tax money and the properties should be reserved for the use of all of us, our keiki and grandchildren. This should not be subject to change just because the county cannot make their budget. The county should be fiscally responsible and have a sizeable Disaster Relief Fund. Our County has more natural disasters than any county in the US. Wouldn't this be prudent? This is a voter mandated set aside. IF not dedicated in perpetuity, the land could be sold, developed for a hotel; beach access controlled like what happened at the Mauna Kea, Mauna Lani, Kukio Four Seasons Resorts and Kohanaiki. The money would disappear into the general fund. Another great gift of the 2% Land Fund is the capacity to apply for matching funds. The County frequently applies for an gets money for matching funds from State Legacy Lands and US Fish and Wildlife Service. So far, the County has received $8.76 million in matching funds, approximately 25% of the purchase price of the acquired properties. Why would they want to contribute money to these land purchases if the County could turn around and sell the land? COUNTY/ STATE and FEDERAL GOVERNMENT COOPERATION: The County is currently collaborating with the National Park Service for both the Kahuku property and on the Waikapuna property which is under contract in Ka'u. Hawaii Volcanoes National Park helps to manage the Kahoka property. The Ala Kahakai Trail Association in conjunction with the Ala Kahakai National Historic Trail https://www.nps.gov/alka/index.htm, which has a management plan for the King's Trail or Ala Kahakai Trail that runs 175 miles from Upolu Point near Hawi to Hawaii Volcanoes National Park. The State of Hawaii Legacy Lands program frequently donates money to purchase properties. THE MAINTENANCE FUND CHARTER AMENDMENT was on the ballot in 2012. Council member Brenda Ford and I wrote the legislation creating the 2% Maintenance Fund to care for the lands obtained by the 2% Land Fund. Maintenance Fund grants are available to community groups who are maintaining Hawai'i Islands treasured places. Our intent was to empower these groups to continue their good work and to enable and encourage kuleana and the building of community for these lands. The County has made good use of these funds. But in the last 5 years there have only been 2 groups that have obtained these funds. WHY? This process needs to be improved. It has now been placed under the care of the PONC Commission. This should help get these funds to community groups! I was a PONC commissioner and these volunteers are strong advocates for land conservation and maintenance. Get in touch with your PONC Commissioner and ask their help to obtain Maintenance Funds or how to suggest lands for preservation in your community. PROPERTY ACQUISITION PROCESS is available here: http://records.co. hawaii. hi. us/weblink/browse.aspx?dbid=1&startid=13770 Here's the link to find out who is your commissioner on for the Public Access and Open Space Natural Resources Commission: http://records.co.hawaii.hi.us/weblink/1/edoc/90257/PONC%20Commissioner%20Biographies %20(updated%2011-13-2017).pdf In the above map you can see there are 14 properties that have been purchased and 14 groups that can use assistance. If you are one of these groups we encourage you to apply to the Public Access and Open Space Commission (PONC). The County should do better to enable and empower our communities and the PONC Commission seems to agree. The 2018 Report to the Mayor contains: COMMISSION AND COMMUNITY RECOMMENDATIONS AND CONCERNS • The Commission is very concerned about the process and the form currently being used for Stewardship Grant applications. There is also lack of clarity about what expenses are eligible for funding using the Maintenance Fund. • The Commission encourages non-profit community groups to apply for stewardship grants. • PONC STEWARDSHIP GRANT: Properties that are acquired with Land Fund monies can apply for maintenance funds. Here is a link to the application. http://records.co.hawaii.hi.us/weblink/1/edoc/80189/PONC%20Stewardship%20 Grant%20Request%20Form%20(application%2Operiod%20801 %20-%2083116).pdf The GREAT SUCCESS OF THE 2% LAND FUND: PROPERTIES ACQUIRED since 2006: 14 PROPERTIES SUBMITTED FOR ACQUISITION: 180 LAND ACQUIRED: 4,428 acres of land already acquired suggested by community members MONEY SPENT: County of Hawaii 2% Land Fund $ 27,389,268. Grants from Matching funds* $8,764,083. Private funds: $2,000,000 *MATCHING FUNDS- My opinion: The highest and best use of 2% of taxpayer's funds is to use the 2% Land Fund to get dollar for dollar matching funds. To date the County has only received 1 dollar for every 3 dollars spent for taxpayers OR only 32% of the money spent is from grants. The ultimate goal would be to get dollar for dollar matching funds. PROPERTIES SUBMITTED TO THE PONC COMMISSION TO BE CONSIDERED FOR ACQUISITION since December 28, 2016: This information came from the Comprehensive List of Properties http://records.co.hawaii.hi.us/weblink/1/edoc/84955/2016-12- 28%2OPONC%20Comprehensive%20List%20of%20Properties%20Submitted%20by%20the%20Publ ic.pdf QUICK HISTORY OF THE LEGISLATION FROM 2005 to 2018: 1. Where did the 2% amount come from? In 2004 and early 2005 the Trust for Public Lands (TPL) did a survey of Hawaii County residents to ask if they would like to see a 1`)/0 Land Fund or 2% Land Fund. A large majority of residents said they would want a 2% Land Fund because land is so expensive on the Big Island. Sammie Stanbro donated the money to TPL for this survey. 2. The Save Our Lands Citizen's Committee Petition Initiative drive collected 9,600 signatures from April to July of 2006. This was during Harry Kim's first term. Mayor Kim was adamantly against setting aside 2% of property taxes for land acquisition, even though this is 1.5% of the total income for the County. County Clerk Connie Kiriu and County Counsel Lincoln Ashida disqualified almost 6,000 signatures for leaving off PI, St. or Rd, or if husband and wife used ditto marks for their address when signing under each other or if the year was left off, (we collected signatures from May to July so it was only during 2005 which made the year implied and irrelevant). 3. We needed 4,400 signatures, but because of the disqualifications we didn't get enough. The County Council decided to place the ballot measure on the ballot for 2006 anyway. 4. Despite the Corporation Counsel submitting confusing ballot language using double negatives, the amendment to the Code passed by 63% of voters who voted on the issue and become part of the Hawaii County Code. 5. In 2008- Mayor Kenoi and the County Council suspended deposits to the Fund for two years as his very first piece of legislation after taking office because the legislation was part of the Hawaii County Code. The Save Our Lands Citizens' Committee pointed out that there were more than 260 funded but unfilled jobs in his budget, but Mayor Kenoi failed to reinstate payments to the 2% Land Fund after cutting these budget entries totaling approximately $14 million. 6. In 2010, the Charter Commission put the Land Fund on the ballot again, but only as the 1`)/0 Land Fund. Again the Land Fund passed by 63% of voters, who voted on the measure. 7. In 2012, to honor all the people who signed the petitions and worked so hard over the years, Debbie Hecht and Brenda Ford realized we needed to put the 2% Land Fund back on the ballot as a Charter Amendment, together with a 1/4% Maintenance Fund. We wanted to make sure the Council and Mayor couldn't stop fund deposits and a charter amendment can only be undone by a vote of the people. Again, 63% of voters approved both measures. As part of the 2% Land Fund legislation, every property obtained with our taxpayer funds shall have a covenant that runs with the land stating that these lands are to be held in perpetuity for the citizens of the County of Hawaii and cannot be sold, traded, mortgaged etc. This has already blocked a potential land trade with the State of Hawaii. 8. The Maintenance Fund was clarified in the Hawaii County Code in 2016 to allow the PONC Commission to review Stewardship Grants and to recommend which grants to approve to the Director of Finance. GRASS ROOTS ORGANIZING PROCESS to pass the 3 ballot measures: • During the Petition Initiative process, the Save Our Lands Citizen Committee had more than 100 people who collected signatures of more than 50 signatures each in 2006. • The Committee has a 3,000 personal email list, which we use to inform our supporters, or if we need emails sent to elected officials, or to ask people to show up for public meetings or to lobbying their Council members. These 3,000 people were asked to contact their email list. They represent about 10% of the voting public on the island. (There have been approximately 100,000 voters registered for the County of Hawaii, usually about 33,000 of these registered voters actually vote, therefore 3,000 supporters is 10% of the vote.) Citizens have proposed 180 properties for acquisition: • Puna area: 16 properties • South Hilo area: 16 properties • North Hilo: 7 properties • Hamakua: 26 properties • North Kohala: 29 properties • South Kohala: 18 properties • North Kona: 27 properties • South Kona: 14 properties • Ka'u: 27 properties The Community recommends a property to the Public Access and Open Space Commission, here is the process and links to the application: http://records.co.hawaii.hi.us/weblink/1/edoc/84953/Process%20for%20Property%20Acquisitio n%20with%20Funds%20from%20the%2OPONC%20Fund.pdf THE HAWAII COUNTY CHARTER AND THE HAWAII COUNTY CODE: which regulates the 2% Land Fund (PONC) and the PONC Maintenance Fund go to: http://records. co. h awai i. h i. us/webl i n k/browse.aspx?starti d=13770&d bi d=1 Submitted by Debbie Hecht, Campaign Coordinator Save Our Lands Citizen's Committee Hecht.deb©gmail.com 808-989-3222 This ARTICLE IS ALSO AVAILABLE WITH LIVE LINKS AT MY WEBSITE: www.Debbiehecht.com https://debbiehecht.com/2018/03/09/hawaii-county-and-the-biq-islands-2-land-fund-report-3-9-2018/ County of Hawaii Public Access, Open Space and Natural Preservation Commission (PONC) ACQUISITION ACREAGE STATUTS REPORT (as of May 18, 2018) GRANTS AWARDED AMOUNT FUNDED PONC FUND (actual including closing costs/escrow refunds) TOTAL State of Hawaii, Dept. of Land & Natural $ 1,214,750.00 $ 708,557.29 $ 1,923,307.29 Resources, Legacy Land Conservation Program Kawa`a, Kai TMK:9-5-17:07 State of Hawaii, Dept. of Land & Natural $ 945,000.00 $ 944,172.44 $ 1,889,172.44 Resources, Legacy Land Conservation Program Pa`o`o, North Kohala TMK:5-7-01:05 State of Hawaii, Dept. of Laud & Natural $ 1,500,000.00 $ 1,929,004.47 $ 3,936,004.47 Resources, Legacy Land Conservation Program Federal, U.S. Fish & Wildlife, Recovery Lands $ 507,000.00 Acquisition Grant K5wa, Ka`u, TMK's:9-5-16:06 & 25; 9-5-17:05 State of Hawaii, Dept. of Land & Natural $ 1,432,088.77 $ 2,573,715.45 $ 4,005,804.22 Resources, Legacy Land Conservation Program Kaiholena, North Kohala TMK's:5-8-01:21, 22 & 25 State of Hawaii, Dept. of Laud & Natural $ 621,245.00 $ 771,979.12 $ 2,607,224.12 Resources, Legacy Land Conservation Program Federal, U.S. Fish & Wildlife, Recovery Lands $ 1,214,000.00 Acquisition Grant Kahuku Coastal Property, Kai TOTAL GRANTS (AWARDED) = S 7,434,083.77 $ 6,927,428.77 $ 14,361,512.54 GRANTS PENDING AMOUNT TO BE FUNDED PONC FUND (estimated - not including closing costs) TOTAL State of Hawaii, Dept. of Land & Natural Resources, Legacy Land Conservation Program Wai'opae, Puna TMK: 1-4-02:22 $ 1,330,000.00 $ 1,330,000.00 $ 2,660,000.00 TOTAL GRANTS (PENDING) =I S 1,330,000.00 J TOTAL GRANTS = 8,764,083.77 ACQUISITION (PRIVATE DONATION) PRIVATE DONATION PONC FUND (actual including closing costs/escrow refunds) TOTAL `O`oma, North Kona, Hawaii TMK:7-3-09:04 2,000,000.00 4,234,933.83 6,234,933.83 TOTAL ACQUISITION (W/DONATION) = Page 1 of 3 6,234,933.83 County of Hawaii Public Access, Open Space and Natural Preservation Commission (PONC) ACQUISITION ACREAGE STATUTS REPORT (as of May 18, 2018) ACQUISITIONS (NO FUNDING) 2% FUND (actual - iadmth g elosing, TOTAL Pohoiki Bay, Puna, Hawaii TMK: (3) 1-3-08:97 $ - $ 1,606,134.]1 $ 1,606,134.11 Waipi`o Valley Lookout Parcel Hamakua, Hawaii; TMK: (3) 4-8-04:06 $ - $ 902,120.43 $ 902,120.43 Haws Banyan Trees Property, North Kohala TMK: (3) 5-5-15:42 $ - $ 753,6] 2.0] 6 753,612.0] Kaiholena (north), North Kohala, Hawaii TMK's: (3) 5-8-01:11, 19, 20, 24 $ - $ 6,550,045.82 6 6,550,045.82 Kipapa Park, North Kona, Hawaii TMK's: (3) 7-7-08:20, 31 $ - $ 3,240,026.09 $ 3,240,026.09 White Sands Mauka, North Kona, Hawaii TMK's: (3) 7-7-08:21, 23 $ - $ 3,004,150.0] $ 3,004,150.01 Kahua Olohu, Ka`u, Hawaii TMK: (3) 9-5-12:05 $ - $ 170,879.66 6 170,879.66 Halawa, North Kohala, Hawaii TMK: (3) 5-3-007:022 $ - $ 2,504,425.25 6 2,504,425.25 TOTAL ACQUISITIONS (NO FUNDING) = SUB -TOTAL = GRANTS AWARDED = PRIVATE DONATION = TOTAL ACQUISITION COSTS (COUNTY) = $ 18,731,393.38 $ 39,156,960.09 $ 5,598,838.77 $ 2,000,000.00 $ 31,558,121.32 Page 2 of 3 County of Hawaii Public Access, Open Space and Natural Preservation Commission (PONC) ACQUISITION ACREAGE STATUTS REPORT (as of May 18, 2018) District/Property/Tax Map Key Zoning Acreage District Totals PUNA 26.7620 Pol►oiki = 1-3-08:97 26.7620 HAMAKUA 1.8040 Waipi'o = 4-8-04:06 Agricultural 1.8040 NORTH KOHALA 261.8330 Halawa (Hale 0 Kaili) = 5-3-07:22 Agricultural 22.0820 Haw -i Banyan Trees Property = 5-5-15:42 Commercial 0.9110 Pa'o'o = 5-7-01:05 Agricultural 10.6100 Kaiholena = (north) 5-8-01:11 Agricultural 71.1880 (north) 5-8-01:19 " 44.0300 (north) 5-8-01:20 " 36.3400 (south) 5-8-01:21 37.2060 (south) 5-8-01:22 39.3400 (north) 5-8-01:24 " 0.0570 (south) 5-8-01:25 " 0.0690 NORTH KONA 234.3525 Mina = 7-3-09:04 Conservation 217.5660 Kipapa Park/White Sands JVlauka = 7-7-08:20 Hotel 1.3017 7-7-08:21 Residential 10.6170 7-7-08:23 Apartment 0.1578 7-7-08:31 Agricultural 4.7100 KA'U 3,926.1140 Kahua Olohu = 9-5-12:05 Agricultural 13.0000 Kahuku Coastal Property = 9-2-01:75 Agricultural 3,127.9500 K5w5 = 9-5-16:06 Conservation 81.3030 9-5-16:25 106.3800 9-5-17:05 363.1880 9-5-17:07 234.2930 TOTAL ACREAGE ACQUIRED (TO DATE) 4,450.8655 Page 3 of 3 Comments by the Save Our Lands Citizen's Committee on the Hawai'i County Charter Commission's Ad Hoc Committee Report on the 2% Land Fund 11.1.2018 Respectfully submitted by Debbie Hecht, Campaign Coordinator 2% Land Fund since 2005 SUCCESSES To Date: 4,450.86 acres have been acquired by the county of Hawaii' with 2% Land Fund Monies To be added: 2,200 acres being negotiated on at this time at Waikapuna Total spent: $39,327,839. From Land fund: 29,893,755 From private funds 2,000,000. Matching funds: 7,434,084. State Legacy Lands, US Fish and Wildlife Service for Endangered Species. PROPOSAL BY THE CHARTER COMMISSION'S AD HOC COMMITTEE: REDUCE THE FUND from 2% TO THE 1/2% LAND FUND. OUR ADVICE: 1- LEAVE THE 2% LAND FUND AMOUNT ALONE! This was approved by 63% of voters at the polls 3 times. The 1/2 % Land Fund would be only $1.5 million per year. In the past only 2 properties have been purchased for less than $1.5 million. Properties are expensive in Hawaii. To save anything of size and acreage and properties at the ocean are very costly. Why is the County not spending the money? Land acquisition takes time, sometimes years to accomplish. As you can see by the Acquisition Status Report Properties are expensive. http://records. co. hawaii. hi. us/weblink/1 /edoc/84955/2016-12- 28%20PONC%20Comprehensive%20List%20of%20Properties%20Submitted%20by%2 Othe%20Public. pdf The public has submitted 180 properties for acquisition to Public Access, Open Space and Natural Resources Commission (PONC). Only 14 properties have been acquired. PROPERTIES SUBMITTED TO THE PONC COMMISSION TO BE CONSIDERED FOR ACQUISITION since December 28, 2016. The County should do a better job at soliciting matching funds. http://records.co. hawaii. hi. us/weblink/1/edoc/84955/2016- 12- 28%20PONC%20Comprehensive%20List%20of%20Properties%20Submitted%20by%2 Othe%20Public. pdf%20 2- STAFF IS NEEDED: We are submitting a charter amendment to recommend that the Department of Finance hire an additional senior staff person, skilled in real estate acquisition and management and paying them from the 2% Land Fund monies. This would be in addition to the staff person provided for as part of the Ordinance creating the Public Access, Open Space and Natural Resources Commission. Both the Charter Commission's Ad Hoc Committee and the Public Access, Open Space and Natural Resources Commission recommended that more paid county staff is needed. We also believe that all PONC Functions should be regulated under the Department of Finance. Their work should only be for work on PONC properties and future PONC acquisitions. Staff should have clearly defined duties, including but not limited to: PONC property acquisition and pursuit of matching funds, maintenance of lands with the Maintenance Fund monies, procuring and overseeing maintenance contracts for the 2% Lands, administration duties for stewardship Comments on Charter Commission's Ad Hoc Committee on 2% Land Fund & Maintenance Fund 1 grants, support to the Public Access, Open Space and Natural Resources Commission (PONC), and develop a template for the Council members to submit resolutions for properties in their districts which instruct the Director of Finance to pursue acquisition. This is an important benefit to the Department of Finance because they would not have to pay for a full time staff person from DOF budget because the salary would come from the 2% Land Fund. Additional staff would strengthen the 2% Land Fund program, by enabling the County to concentrate staff power on acquisitions by the 2% Land Fund and maintain and improve these properties. PROPOSAL BY THE CHARTER COMMISSION'S AD HOC COMMITTEE: REDUCING THE RATE AND CAPPING THE FUND: OUR ADVICE: • NO CAP. THERE IS MUCH TO DO, with extra staff we believe we can strengthen the fund and make it much more successful. Waikapuna would reduce the amount in the fund by $4 million for 2,200 acres and there are 166 properties that are still proposed. If we don't have money in the fund we cannot get matching funds. So far matching funds have been 33% of the money spent. • DO NOT REDUCE THE 2% LAND FUND RATE. The reason that the money has not been used is because there is not enough staff to properly administer the program. In years, past there have been 2 dedicated staff to negotiate and pursue these lands. Staff salaries two people, solely to work on PONC acquisitions and management should come out of the 2% Land Fund. • REDUCE THE RATE: From the Ad Hoc Committee's Recommendations: • Option 1- reduces the rate to .5% per year. • Option 2- reduces the rate to 1`)/0 of which .75% would go to the Land Fund and .25% to the Maintenance Fund. THESE PROPOSALS WOULD DESTROY THE FUND because: 1. As you can see in the Acquisition chart, not many properties were purchased for the amount $1.5 million. 2. It would mean fierce competition for the money to purchase lands and there are still 166 properties proposed for acquisition. Communities feel a deep connection and kuleana to these lands. These properties bring people together to build communities around these lands. 3. THE PROCESS -Property acquisition is a long process, usually taking several years. Dedicated, knowledgeable staff is needed to shepherd properties through this process. After a citizen recommends a property to PONC, then it is vetted through PONC and hopefully makes the recommendation in the Report to the Mayor in December of each year. Then the Council member and/ or staff needs to write a resolution to direct the Director of Finance to acquire the property and staff goes to work. They contact property owners, conduct appraisals, land surveys, flora and fauna inventories for endangered species, floodplain etc. Just this work can take a year. They should look for matching funds. The staffs currently tasked with these duties are frequently given other jobs to do. 3- We also believe that all PONC Functions should be regulated under the Department of Finance There is already a staff member provided by the PONC statute to assist the PONC Commission with their duties. A paid senior staff salary should be paid from the 2% Land Fund. Staff should be paid out of the 2% Land Fund, but only for work on PONC properties and future PONC acquisitions. Staff have clearly defined duties, including but not limited to: PONC property acquisition and pursuit of matching funds, maintenance of lands with the maintenance fund monies, procuring and overseeing maintenance contracts for the 2% Comments on Charter Commission's Ad Hoc Committee on 2% Land Fund & Maintenance Fund 2 Lands, administration duties for stewardship grants, support to the Public Access, Open Space and Natural Resources Commission (PONC), and develop a template for the Council members to submit resolutions for properties in their districts instructing the Director of Finance to pursue acquisition. 4- The Department of Finance would not have to pay for a full time staff person from DOF budget because the salary would come from the 2% Land Fund. Please read the Reports to the Mayor about the PONC's recommendations on properties to still be acquired http://records.co.hawaii.hi.us/weblink/1/edoc/91477/2017-12- 28%20(2017%2OPONC%20Annual%20Report%20to%20the%20Mayor).pdf PROPOSAL BY THE CHARTER COMMISSION'S AD HOC COMMITTEE: REMOVE THE PROTECTIVE COVENANT SO THE COUNTY CAN SELL THESE LANDS TO THE PARK SERVICE OR THE STATE (as Mayor Kim said in his address to the Charter Commission during October 2018) THE COVENANT STATES: "This property (or easement) was acquired with money from the Public Access, Open Space and Natural Resources Preservation Fund. It shall be held in perpetuity for the use and enjoyment of the people of Hawaii County and may not be sold, mortgaged traded or transferred in any way." THE INTENT: Removing this covenant would defeat the whole purpose of the 2% Land Fund. The Land Fund was mandated by 63% of voters 3 times at the polls. The 2% Land Fund is what voters want! 1. The process to acquire properties is long and arduous and done by volunteers who care about the land where they live. 2. More staff would enable more to get accomplished fulfilling the real mission of the 2% Land Fund. 3. These lands are purchased with OUR property tax dollars. 4. This could put Hawaii county in the real estate business and that is not the intent of the county or the people that collected signatures to get this on the ballot originally, and voted to approve the Land Fund by 63% three times. 5. These lands help build community and can provide jobs and tourism dollars in these communities where parklands are preserved for hiking and scenic beauty. 6. Selling these lands would be a slap in the face to the electorate and possibly diminish voter's confidence in government. 7. We know it is important to keep this clause in the Charter, because Mayor Kenoi already tried to trade land with the state and this clause stopped him. MISCONCEPTIONS: Mayor Kim says that he can't manage or maintain the lands, although there is a Maintenance Fund for that purpose which is well used by the County. The county can have dedicated staff and use MOUs with the National Park Service, DLNR and Legacy Lands, which they are already doing. Mayor Harry Kim via the Charter Commission wants to delete the following covenant from the Charter so he can sell our 2% Lands and put the money in the general fund for any Mayor to spend. OUR ADVICE: 1- Hawaii County gets matching funds from State Legacy Lands, private donors and US Fish and Wildlife, because we have the money waiting to be used in a fund that is dedicated for land acquisition ONLY. This covenant guarantees that the property will remain in the public Comments on Charter Commission's Ad Hoc Committee on 2% Land Fund & Maintenance Fund 3 trust forever. Losing the perpetuity clause will dry up these sources of funding, which the great gift of the Land Fund. 2- Selling this lands is a slap in the face to the people who worked through he long process to bring the property to the Commission and to the community groups who labor to care for these parks. The County could be liable for misuse of funds from donors such as US Fish and Wildlife, private donors who did not expect their funding to be reallocated to the Hawaii County General Fund. 3- Why would State Legacy Lands, private donors or US Fish and Wildlife contribute matching funds if they knew the lands could be sold? 4- Maintenance for the 2% Lands is provided in the 1/2% Maintenance fund. The County has been using that money to graze goats, do fencing, and pay for title reports and general upkeep. The intent of the fund was to help the non -profits that proposed these lands and provide stewardship to help build community around these lands. 5- As a matter of fact, the County currently uses Memorandums of Understanding with different organizations to steward and care for these lands such as Ala Kahakai Trail Association, the non -profits in North Kohala and US Fish and Wildlife and Hawaii Volcanoes National Park. Most government agreements are facilitated by MOU. This is common practice and is currently being done by the County. 6- IF this Covenant/ Deed Restriction is erased, any of the lands purchased by 2% Land Fund money can be sold or traded and the money put into the General Fund. 7- Three times citizens voted to set aside this money by 63% of the vote. This is the "Will of the People" and the County government is mandated to set aside and purchase lands suggested by the people, prioritized by the Public Access and Open Space Commission and then directed by Resolution to purchase these lands. This is a Public Trust issue. 8- Why isn't the 2% Land Fund money being spent? Why aren't more properties being acquired? Why aren't more matching funds being solicited? There are still 166 properties that are proposed but not purchased. The County needs to do their job and respect the will of the people who voted 3 times at 63% to approve the Land Fund. A staff person hired by the Department of Finance and paid out of 2% Land Fund monies would strengthen the 2% Land Fund program. PROPOSAL BY THE CHARTER COMMISSION'S AD HOC COMMITTEE: SHOULD SECTION 10-16 TO THE PONC MAINTENANCE FUND BE CHANGED? OUR ADVICE: 1- THE SCOPE of the Maintenance Fund could be expanded to include the Ad Hoc committee's recommendations of toilet facilities, small structures for educational purposes, storage of equipment, roads, trails and paths. We are proposing a charter amendment that changes this part of the Maintenance Fund. 2- With the scope and uses of the Maintenance Fund expanded, THE AMOUNT SHOULD REMAIN THE SAME. If staff were provided as stated above by the 2% Land Fund monies, then more focus would be directed at the intent of the 2% Land Fund and the Maintenance Fund and work would get accomplished with projects and stewardship grants to the non -profits with the Maintenance Fund monies. 3- The administration of the Maintenance Fund should be handled by the Department of Finance. For information on the 2% Land Fund: History, Process and Successes 11.1.2018 go to this site: https://debbiehecht.com/2018/03/09/hawaii-county-and-the-big-islands-2-land-fund-report-3-9-2018/ Debbie Hecht, Save Our Lands Citizen's Committee Campaign Coordinator 2005 to present Please join our email list or for comments: hecht.deb(a�gmail.com 808-989-3222 Comments on Charter Commission's Ad Hoc Committee on 2% Land Fund & Maintenance Fund 4 HAWAII COUNTY CHARTER Section 10-15. Public Access, Open Space, and Natural Resources Preservation Fund. . (a) In adopting each fiscal year's operating budget, the council shall appropriate a minimum of two percent of the certified real property tax revenues, including penalty and interest, to a fund known as the public access, open space, and natural resources preservation fund. Deposits to the fund shall occur at a minimum, on a quarterly basis. . (b) Funding shall consist of a minimum of two percent of actual revenue received in the fiscal year. Additional revenue may consist of grants and private contributions intended for the purpose of this section, voluntary contributions of any amount as specified on the real property tax bill, proceeds from the sale of general obligation bonds authorized and issued for the purpose of this section, council appropriations for the purpose of this section, and any other source of revenue. (c) Monies in this fund shall be used solely to: . (1) Purchase or otherwise acquire lands and easements in the County of Hawai`i for [sEPpublic outdoor recreation and education, including: s p (A) Access to beaches and mountains; sb (B) Preservation of historic or culturally important land areas and sites; s p (C) Protection of natural resources, significant habitat or eco -systems, [}I including buffer zones; sb (D) Preservation of forests, beaches, coastal areas, natural beauty and [sEpiagricultural lands; andsb](E) Protection of watershed lands to preserve water quality and water supply. . (2) Pay the principal, interest and premium, if any, due with respect to bonds issued in whole for the purpose of this fund. . (d) Any balance remaining in the fund at the end of any fiscal year shall not lapse, but shall remain in the fund accumulating interest from year to year. The moneys in this fund shall not be used for any purpose except those listed in this section. . (e) The council shall by ordinance establish procedures for the administration and expenditure of moneys in this fund. . (f) This fund shall be used for acquisition of land and easements and shall not be used for development, maintenance or for any purpose other than as provided in this section. (g) This fund shall be used to pay a salary for a senior staff person who shall be hired by and work for the Department of Finance. Their duties shall be limited to administration for Public Access, Open Space and Natural Resource Projects, either for acquisitions, maintenance of these lands, and administration of the Maintenance Fund or stewardship grants. The duties for the administration of the 2% Land Fund and the 1/4% Maintenance Funds shall include, but not be limited to: assisting the public on submittals for acquisition, working with the Public Access, Open Space and Natural Resources Commission (PONC) to prioritize properties for the Report to the Mayor, property negotiation and acquisition, the pursuit of matching funds, the maintenance of lands with the Maintenance Fund monies, procuring and overseeing maintenance contracts for properties purchased with monies from the 2% Public Access, Open Space and Natural Resources Fund, administrative duties for stewardship grants, and to develop a template for the Council members to submit resolutions for properties in their districts that instruct the Director of Finance to actively pursue acquisition. This staff position is in addition to the staff person provided in the Hawaii County Code to assist the Public Access, Open Space and Natural Resources Commission. (g) (h) The highest and best use of this fund is to leverage the money in the fund by attracting matching funds, although, matching funds are not required in every purchase. (h) (i) Any land acquired with this fund shall contain the following restrictive covenant in its recorded deed of conveyance: "This land was acquired with moneys from the Public Access, Open Space, and Natural Resources Preservation Fund. It shall be held in perpetuity for the use and enjoyment of the people of Hawai`i County and may not be sold, mortgaged, traded or transferred in any way." O (j) Any easement acquired with this fund shall contain the following restrictive covenant in its recorded deed of conveyance: "This easement was acquired with moneys from the Public Access, Open Space, and Natural Resources Preservation Fund. It shall be held in perpetuity for the use and enjoyment of the people of Hawai`i County and may not be sold, mortgaged, traded or transferred in any way." (2010, Prop. 1, sec. 1; 2012, Ord. No. 11-94, sec. 1.) Section 10-16. Public Access, Open Space, and Natural Resources Preservation Maintenance Fund. (a) The purpose of the public access, open space, and natural resources preservation maintenance fund is to accrue and use moneys for maintenance of lands and easements acquired by the public access, open space, and natural resources preservation fund. The maintenance fund will ensure that money is dedicated to preserve the land, promote public safety, and maintain a healthy stewardship. (b) Definitions. For the purpose of this section, the following definitions apply: "Maintenance" means to preserve and conserve lands and easements acquired by the public access, open space, and natural resources preservation fund and keep them in good repair for public safety. "Maintenance fund" means a separate fund that holds moneys directed from: 1) the general fund and property tax revenues; or 2) designated grants, private contributions, proceeds from the sale of general obligation bonds, council appropriations, and any other source of revenue. (c) There is established a public access, open space, and natural resources preservation maintenance fund (hereinafter "maintenance fund"). The maintenance fund shall be administered and managed by the department of parks and recreation Department of Finance-. The financial aspects of the maintenance fund shall be handled by the Department of Finance. (d) Deposits due to the maintenance fund. (1) In adopting each fiscal year's operating budget, the council shall appropriate one-quarter of one per cent of all real property tax revenue (including interest and penalties) to the maintenance fund. Deposits to the maintenance fund shall occur on a quarterly basis at a minimum. (2) Additional revenue deposited in the maintenance fund may consist of grants and private contributions intended for the purpose of this section, proceeds from the sale of general obligation bonds authorized and issued for the purpose of this section, council appropriations for the purpose of this section, and any other source of revenue. (e) Accounting for the maintenance fund; interest bearing accounts; reporting by the department of finance. (1) All moneys in the maintenance fund shall be deposited in interest bearing accounts until needed. Any interest shall accrue to the maintenance fund. (2) Moneys in the maintenance fund shall be identified separately for: (A) Funding received from the real property tax revenue including interest and penalties; and (B) Funding received from grants and private contributions, and any other source of revenue, and its interest earned, which: i. Shall be itemized and earmarked for specific projects for the lands or easements. ii. Shall not be subjected to the maximum accrual of funds limit provided in subsection (f). (3) Financial statements shall be posted each month on the public access, open space, and natural resources preservation fund web site. (f) Maximum accrual limit in maintenance fund; exemption to funding. (1) Only moneys derived from real property tax revenue, its interest, and its penalties shall be included in the computation of the maximum accrual limit for the maintenance fund. All other moneys specifically directed to the maintenance fund shall be held separately from those moneys in the maintenance fund that originated from real property tax revenues (including interest and penalties), and shall not be subjected to the maximum accrual limit. (2) The maximum accrual limit shall not exceed $3,000,000. (3) At the end of any fiscal year in which the maintenance fund holds unencumbered funds derived from real property tax revenue (including interest and penalties) of at least $3,000,000, any unencumbered amount in excess of that $3,000,000 shall be permanently transferred to the general fund balance. (4) Exemption to funding. If the maintenance fund holds $3,000,000 in unencumbered funds derived from real property tax revenue (including interest and penalties), then the council and the executive branch do not need to add more money to the maintenance fund until the next budget cycle. This exemption shall not release the administration from its mandatory duty to maintain and preserve lands and easements acquired by the public access, open space, and natural resources preservation fund in good repair for public safety each fiscal year. (g) The maintenance fund shall be used solely for public safety maintenance and preservation of those lands and easements acquired by the public access, open space, and natural resources preservation fund, and may be used only for expenditures directly related to its purpose. Expenditures by the administration or stewardship grants presumed to be directly related are as follows: (1) Reparation (fixing, mending, repair work, and servicing); (2) Preservation (damage control, salvaging, safekeeping, and safeguarding); (3) Conservation of soil, forests, shorelines, native wildlife, streams, wetlands, watershed, and floodways; (4) Restoration (replacement, reclamation, reconditioning, and remediation); (5) Wildfire and fire prevention; (6) Repair of existing buildings to meet the current code requirements, if the building is deemed reasonable to save; (7) Replacing signs to meet the current code requirements; (8) Installation, repair, or replacement fencing and gate or access mechanisms; (9) Installation or repair of cattle guards; (10) Mitigation of flooding problems including repair or restoration of existing culverts, drainage features, or other similar flood control mitigation; (11) Archeological survey and buffering of Native Hawaiian historical or cultural sites after appropriate consultation with Native Hawaiian descendants and cultural practitioners; (12) Biological studies for the protection of Native Hawaiian species of plants and animals; or (13) Mitigation of Americans with Disabilities Act compliance issues that may arise during the course of public safety maintenance and preservation. Moneys in the maintenance fund shall not be used for planning, design, development, or construction of new buildings, facilities, or infrastructure including roads, paths, bridges, culverts, ramps, or drainage features. Money in the maintenance fund shall also not be used for mitigation of Americans with Disabilities Act compliance issues for any new buildings, facilities, or infrastructure. Payment to resolve these aforementioned issues shall be from the capital improvement projects budget or allotments derived from the general fund. (14) Building, renting, leasing and/or the maintenance of toilet facilities. (15) Building and maintenance of small structures for educational purposes, storage of equipment. (16) Building of roads, trails and paths. (h) Stewardship Grants. Moneys may also be used to provide grants-in-aid for projects, which uses are reflected in subsection (g). (1) An award of a stewardship grant shall be by council resolution. Stewardship grants may be awarded only until moneys in the maintenance fund are extinguished. Grants shall be awarded on the basis of ability of the stewardship organization to complete the project on time and within cost estimates. (2) Only 501(c)3 nonprofits or an organization that operates under the umbrella of a 501(c)3 nonprofit, and that can complete a project for the good of the community, shall be considered for a stewardship grant. (3) Public notice by the department of finance of the availability of the stewardship grants shall be placed in two newspapers of general circulation, as well as electronic media accessible by internet, by August 1 of each fiscal year provided money is available. These advertisements shall be paid for from the maintenance fund. (4) To apply for a stewardship grant, a stewardship organization shall provide to the department of parks and recreation finance the following: (A) An application form obtained from department of parks and recreation finance which is completed for each specific purpose or project; (B) A detailed business plan for the project that includes the name of the 501(c)3 nonprofit organization, the organization that operates under the umbrella of a 501(c)3 nonprofit organization, if any, a copy of its letter of determination from the Internal Revenue Service, a copy of its bylaws and mission statement, a description of the specific project, time frames for project goals, costs, and activities to accomplish the stated purpose, and any other information requested by the department of parks and recreation;finance and (C) A signed agreement to file a written report one year or less after receipt of funds that includes details as to what has been accomplished on the project, costs, and how the money was spent. (5) No officer, board member, or employee of the 501(c)3 nonprofit organization or the organization that operates under the umbrella of a 501(c)3 nonprofit organization shall receive a salary or payment for labor or receive any reimbursement for the stewardship work on the project. The 501(c)3 nonprofit shall sign an agreement so stating these conditions and submit it with the application. (6) Mismanagement of moneys awarded for a stewardship grant shall bar the 501(c)3 nonprofit organization and the organization that operates under the umbrella of a 501(c)3 nonprofit organization from receiving future grants from the maintenance fund. (7) The director of the department of parks and recreation finance shall provide a short written evaluation of the proposed project to the council and include a recommendation about the applicant's ability to complete the project according to the project plan. (2012, Ord. No. 12-16, sec. 1.)