Report Title:

Small Boat Harbors; Ala Wai Harbor Pilot Program

Description:

Provides for a 7-year Ala Wai harbor pilot program to restructure that harbor consistent with a stakeholder-based management structure, in order to assure accountability. Requires reports to the legislature to implement the pilot program.

HOUSE OF REPRESENTATIVES

H.B. NO.

1512

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO SMALL BOAT HARBORS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that Hawaii’s recreational harbors and related facilities of the department of land and natural resources, division of boating and ocean recreation, need to be managed in a manner to facilitate public recreational boating and other water recreation activities, support associated land-based commercial enterprises, and generate sufficient revenue to be individually self-sustaining.

The legislature further finds that the way the State’s recreational harbor facilities are organized and managed is inefficient, inequitable, and lacking accountability. The legislature finds that operational decisions can best be made at the harbor level with ongoing public participation.

In addition, the legislature is concerned that public recreational harbors must remain affordable to the general public and not be reserved for a select group who can afford them. The legislature finds that user fees must, therefore, be reasonably related to actual costs incurred that benefit the user. These fees must be reasonable and sufficient to operate, maintain, and improve recreational harbors.

By the enactment of Act 160, Session Laws of Hawaii 1997, the legislature created a task force to evaluate management alternatives for small boat harbors. The task force recommended community-based, also known as stakeholder management, starting with a pilot program at Ala Wai harbor. This Act implements that recommendation.

The legislature finds that major improvements of Ala Wai harbor were last made in 1988. Ala Wai harbor is in need of major upgrading due to a lack of maintenance and repair, and needs to be brought into compliance with federal law. The legislature finds that this situation is a direct result of redirecting revenues from Ala Wai harbor and by the diversion of the Kahanamoku Beach revenue to the department of land and natural resources, division of lands, while requiring the harbor to continue to administer and maintain the beach's supporting lands.

The recreational users of Ala Wai harbor have prepared a general plan for that harbor, entitled "Visions of Paradise, A New Beginning". The plan retains the Ala Wai harbor in public ownership, constrains the harbor to public recreational use, and creates a stakeholder management structure to assure accountability. The harbor council will report directly to the legislature or an oversight body selected by the legislature. The legislature will establish the policy within which the harbor must operate, and ensure that the harbor remains fiscally self-sustaining and be a responsible member of the local community.

The plan offered by the community will recapitalize and revitalize the harbor and bring it into compliance with federal law. The plan further provides for full recreational development of Ala Wai harbor and presents alternatives for enhancements.

The legislature finds that the Ala Wai harbor plan is innovative, reasonable, and consistent with the overall policies of the State. The plan requires Ala Wai harbor to be run by an authority overseen by a council elected from and by the users of the harbor.

The legislature finds that management and operation of a harbor by a harbor authority is a common practice. The use of an elected council to oversee the authority addresses accountability issues. Limiting the authority to only the Ala Wai harbor restricts the authority from activities unrelated to Ala Wai harbor. An authority is the simplest legal structure that provides the most control by the legislature and has the greatest degree of flexibility, to fund and operate the harbor.

The legislature finds that there must be ongoing consultation by the harbor authority council with the legislature to assure the council develops lands appropriately and not commit the State to programs or contracts that may be injurious over the long term.

SECTION 2. Ala Wai harbor; stakeholder-based management structure; pilot program. (a) As used in this section:

"Reconsolidated Ala Wai harbor" or "reconsolidated harbor" means the return of the original lands and subsurface lands of Ala Wai harbor as configured in 1992.

"Stakeholder-based management" means a method of harbor management with decision-making at the harbor level by a council elected by and from those directly affected by the decisions. Stakeholder-based management includes ongoing public participation and encourages community-initiated methods of setting and achieving goals and objectives established by the harbor-elected council and within the policy established by the legislature.

(b) There is established the Ala Wai harbor pilot program to restructure that recreational small boat harbor consistent with a stakeholder-based management structure to assure accountability. The pilot program shall report directly to the legislature operating as an independent freestanding harbor authority. The pilot program shall be discontinued at the end of seven years if the program is not effective in improving the Ala Wai harbor or not able to be fiscally freestanding.

(c) There is established the Ala Wai harbor steering committee to initiate the pilot program, which shall report directly to the legislature. The steering committee shall be representative of the prime user groups of Ala Wai harbor, consisting of five slip holders as follows:

(1) One live-aboard;

(2) One leaseholder or revocable permit holder;

(3) One surfer;

(4) One paddler or kayaker; and

(5) One resident from the neighborhood.

All steering committee members shall be legal residents of Hawaii and of the United States. Each steering committee member shall have an equal vote.

(d) The steering committee shall report findings and recommendations, including any proposed implementing legislation, to the legislature no later than twenty days before the convening of the 2002 regular session. The proposed legislation shall include provisions to:

(1) Guide the transition to a stakeholder-based management structure to assure accountability;

(2) Create the Ala Wai harbor authority;

(3) Develop a first year annual budget with a well-defined capital reserve account based upon reconsolidated harbor revenues;

(4) Provide procedures and rules under which the Ala Wai harbor authority and the harbor will operate; and

(5) Delineate the procedures and oversee the election of the harbor authority council and a citizens advisory board.

(e) The Ala Wai harbor authority council shall function as the governing body for the harbor. The council may:

(1) Adopt a plan for harbor improvements;

(2) Establish personnel policies;

(3) Employ individuals and agents;

(4) Acquire and dispose of property other than real property;

(5) Establish rates, charges, and rules applicable to harbor users;

(6) Adopt periodic budgets;

(7) Borrow money;

(8) Undertake obligations to and receive funds from other governmental jurisdictions;

(9) Establish prudent fiscal policies and controls; and

(10) Carry out all other customary and necessary management activities.

(f) The council, steering committee, and any other committees related to the harbor and their respective members shall conform to all federal, state, and county laws, except as otherwise provided in this Act.

(g) The Ala Wai harbor authority council shall be elected from and by the users of the Ala Wai harbor that are legal residents of the State and citizens of the United States. The council shall be constituted in the same manner as the steering committee as provided in subsection (c).

(h) The council shall oversee the election of a citizens advisory board consisting of nine members elected at-large from and by the users of the Ala Wai harbor, who shall be residents of the State and citizens of the United States. The council may also appoint a five-member technical advisory committee to assist in the ongoing development of the general plan for the harbor, capital improvement program, and any matters on which the council may seek technical advice.

(i) No member of the Ala Wai steering committee may be a member of the Ala Wai harbor authority council. No member of the steering committee or the Ala Wai harbor authority may work directly for, or as an employee of a contractor working for, or have a financial interest in any contractor working for the steering committee or of the Ala Wai harbor authority during their term, or for two years following the termination of their term of office. No member of the steering committee or authority council may be awarded any long-term benefit for serving on that committee or council.

(j) The members of the steering committee shall serve without compensation, but shall be reimbursed for expenses, including travel expenses, necessary for the performance of their duties.

(k) To protect the public interest and the public investment in Ala Wai harbor, the legislature, or an oversight body selected or appointed by the legislature, shall give prior approval of each budget for each fiscal year through 2004 for the reconsolidated harbor operations and for new major construction, including significant repair and maintenance projects. The legislature, or the legislature’s oversight body, shall also approve of any proposed land use and near shore control rules. Emergency action as required by fire, environmental spill, infrastructure failure, or weather shall not require legislative review or approval.

(l) No moneys in the boating special fund established pursuant to section 248-8, Hawaii Revised Statutes, shall be used for the purposes of the Ala Wai harbor.

(m) The Ala Wai harbor shall not be subject to the jurisdiction or management of the department of land and natural resources, division of boating and ocean recreation.

(n) Quarterly financial statements.

(1) Not more than thirty days following the close of each calendar quarter, the authority shall have prepared a balance sheet, an income statement, and a statement of cash flows for the previous quarter, prepared in accordance with generally accepted accounting principles, consistently applied.

(2) The authority shall cause the authority’s financial statements to be available for review by any member of the general public upon request. The review of these documents shall be done during the authority’s normal business hours. These documents shall also be posted on the internet or authority’s web site.

(o) Ownership and control of Kahanamoku Beach, including any assets and liabilities connected to it, is hereby transferred from the department of land and natural resources to be included in and made a part of the Ala Wai Harbor.

(p) The department of land and natural resources shall provide to the Ala Wai harbor steering committee a parcel map and deed search identifying the deed restrictions of the reconsolidated Ala Wai Harbor for the lands and nearshore areas of Ala Wai Harbor.

(q) The department of land and natural resources shall provide to the Ala Wai harbor steering committee all harbor facility information within sixty days of the effective date of this Act. The facility information shall include a reproducible copy of maps or drawings of each of the reconsolidated harbor-wide infrastructure systems, including water, electricity, and sewerage. Each infrastructure system shall be overlaid on the parcel map at an appropriate scale.

(r) The department of land and natural resources shall provide to the Ala Wai harbor steering committee all financial billing information as of June 30, 2001.

(s) All expenses associated with the Ala Wai Harbor steering committee and the Ala Wai harbor authority shall be paid for out of the revenues of Ala Wai harbor.

(t) The board of land and natural resources shall formulate policies, criteria, and procedures to initiate a system of stakeholder-based management for other recreational small boat harbors and facilities managed by the department of land and natural resources, division of boating and ocean recreation, and determine which other small boat harbors and facilities may participate in the stakeholder-based management system. The board shall report findings and recommendations, including any proposed implementing legislation, to the legislature no later than twenty days before the convening of the 2002 regular session.

(u) The board of land and natural resources shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, to allow for the waiver of rules relating to small boat harbors under chapter 200, Hawaii Revised Statutes, and the specific circumstances under which those rules may be waived, as may be necessary for the efficient implementation of this Act. The board shall draft proposed legislation setting forth a procedure for the waiver of statutes by a small boat harbor, and shall submit the legislation to the legislature in conjunction with its report under subsection (t).

(v) The department of land and natural resources shall adopt rules pursuant to chapter 91, Hawaii Revised Statutes, as may be necessary to implement this Act. The Ala Wai steering committee shall adopt interim rules for the harbor. The harbor authority shall adopt final rules for the harbor."

SECTION 3. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 4. This Act shall take effect upon its approval; provided that this Act shall be repealed on July 1, 2008.

INTRODUCED BY:

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