Report Title:

Ala Wai Boat Harbor; Commercial Vessels

 

Description:

Permits BLNR to lease submerged lands, in accordance with chapter 190D, HRS (ocean and submerged lands, leasing), by public auction, request for proposals, or negotiation, in a state boating facility.  Permits commercial use permits to be issued for vessels assigned moorings in Ala Wai and Keehi harbors.  Directs DLNR to provide for RFP for a public-private partnership to develop portions of Ala Wai small boat harbor for recreational and commercial vessels moorings, vehicular parking, offices, commercial, residential, vessel fueling facilities, and vessel haul-out and repair uses.  (HD1)


HOUSE OF REPRESENTATIVES

H.B. NO.

1766

TWENTY-FIFTH LEGISLATURE, 2009

H.D. 1

STATE OF HAWAII

Proposed

 

 

 

 

 

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 the department of land and natural resources, through its division of boating and ocean recreation, operates and manages twenty-one harbors, fifty boat ramps, 2,122 moorings and berths, and nineteen piers spread throughout the various counties of the State.  However, the legislature further finds that these ocean recreation facilities, in light of the present demand, are in short supply and, in most cases where they exist, are in dire need of long overdue repair and maintenance.  Some facilities are in such need of repair and replacement that they cannot be used and are hazards to public safety.

     One of these facilities, the Ala Wai harbor has been the recipient of some recent badly needed repair and replacement of floating docks; however, the need for further maintenance remains unfulfilled.  In spite of its needs, the Ala Wai harbor includes certain assets within its facilities that are under-utilized and if properly developed can potentially generate revenues that can benefit not only its continued improvement and maintenance but also benefit the rest of the facilities now operated by the division of boating and ocean recreation.

     In these times of economic malaise and with the State facing a massive budget deficit over the next biennium, the further decline in the valuable assets that the State's small boat harbors possess would be a huge loss that the State cannot allow.

     The purpose of this Act is to:

     (1)  Allow the limited issuance of commercial use permits for vessels with assigned moorings in Ala Wai and Keehi harbors;

     (2)  Provide for future mooring fees to be established by appraisal by a state licensed appraiser and assigned a schedule B rate, while existing mooring holders remain in a schedule A class that shall equal schedule B rates over a five-year period; and

     (3)  Direct the department of land and natural resources to use the request for proposals process to enter into a public-private partnership for the development of portions of Ala Wai harbor facilities that are presently under-utilized in order to maximize the revenue potential from its facilities.

     SECTION 2.  Section 200-2.5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§200-2.5[]]  Disposition of state boating facility properties.  (a)  Notwithstanding any law to the contrary, the board may lease fast lands and submerged lands within an existing state boating facility by public auction, a request for proposals, or by direct negotiation pursuant to section 171-59[,] and chapter 190D, for private development, management, and operation.  For the purpose of this section, the term "state boating facility" means a state small boat harbor, launching ramp, offshore mooring, pier, wharf, landing, or any other area under the jurisdiction of the department pursuant to this chapter.

     (b)  The permissible uses under any lease disposed of under this section shall be consistent with the purpose for which the land was set aside by the governor pursuant to section 171-11.  Permissible uses may include any use that will complement or support the ocean recreation or maritime activities of state boating facilities.

     (c)  Disposition of public lands of state boating facilities constructed, maintained, and operated in accordance with this chapter shall not exceed a maximum term of [fifty-five] sixty-five years.

     (d)  All revenues due to the State derived from leases of state boating facilities shall be deposited in the boating special fund."

     SECTION 3.  Section 200-9, Hawaii Revised Statutes, is amended to read as follows:

     "§200-9  Purpose and use of state small boat harbors.  (a)  State small boat harbors are constructed, maintained, and operated for the purposes of:

     (1)  Recreational boating activities;

     (2)  Landing of fish; and

     (3)  Commercial vessel activities.

For the purpose of this section, "recreational boating activities" means the [utilization] use of watercraft for sports, hobbies, or pleasure, and "commercial vessel activities" means the [utilization] use of vessels for activities or services provided on a fee basis.  To implement these purposes, only vessels in good material and operating condition that are regularly navigated beyond the confines of the small boat harbor[,] and [which] that are used for recreational activities, the landing of fish, or commercial vessel activities shall be permitted to moor, anchor, or berth at [such] a state small boat harbor or use any of its facilities.

     (b)  Vessels used for purposes of recreational boating activities [which] that are also the principal habitation of the owners shall occupy no more than one hundred twenty-nine berths at Ala Wai boat harbor and thirty-five berths at Keehi boat harbor, which is equal to fifteen per cent of the respective total moorage space that was available as of July 1, 1976, at the Ala Wai and Keehi boat harbors.  [Notwithstanding the purposes of small boat harbors, moorage for commercial vessels and commercial vessel activities is not permitted in the Ala Wai and Keehi boat harbors; provided that]

     (c)  The total number of valid commercial use permits that may be issued for vessels assigned mooring in Ala Wai boat harbor shall not exceed fifteen per cent of the total berths and shall not exceed thirty-five per cent of the total berths at the Keehi boat harbor; provided that at the Ala Wai boat harbor, vessels issued commercial use permits shall:

     (1)  Not exceed sixty-five feet in length;

     (2)  Occupy not more than fifty-six berths along the row of berths furtherest mauka or adjacent to Holomua street, with the remainder in row seven hundred and row eight hundred; and

     (3)  Include commercial catamarans, for which valid permits or registration certificates have been issued by the department [which] that allow the catamarans to operate upon Waikiki shore waters for hire[, may be permitted to moor in Ala Wai boat harbor at facilities leased for commercial purposes].

     The department shall allow a sole proprietor of a catamaran operating with a valid commercial registration certificate or use permit, issued by the department, for a commercial catamaran to land its commercial catamaran on Waikiki beach and to operate upon Waikiki shore waters for hire, to transfer the ownership of the vessel from personal ownership to corporate or other business ownership without terminating the right to operate under the commercial registration certificate[.] or use permit.  The existing commercial registration certificate or use permit shall be reissued in a timely manner in the name of the transferee corporation or other business entity.  No commercial registration certificate or use permit issued to an owner of a commercial catamaran operating in the Waikiki area shall be denied or revoked without a prior hearing held in accordance with chapter 91.

     [(c)] (d)  Notwithstanding any limitations on commercial permits for Maui county small boat facilities, vessels engaging in inter-island ferry service within Maui county shall be afforded preferential consideration for ferry landings, including the issuance of a commercial operating permit and the waiver of any applicable fees, at Maui county small boat facilities; provided that:

     (1)  The vessel operator has been issued a certificate of public convenience and necessity for the purpose of engaging in inter-island ferry service that includes a route within Maui county;

     (2)  The design and performance characteristics of the vessel will permit safe navigation within the harbor entrance channel and safe docking within Maui county small boat facilities;

     (3)  The vessel operations will not result in unreasonable interference with the use of Maui county small boat facilities by other vessels; and

     (4)  All preferential consideration and waivers, including any commercial permits issued under this section, shall cease upon the vessel operator's termination of inter-island ferry service within Maui county.

     [(d)] (e)  The chairperson may adopt rules pursuant to chapter 91 to further implement this section."

     SECTION 4.  Section 200-10, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The permittee shall pay moorage fees to the department for the use permit that shall be based on[,] but not limited to[,] the use of the vessel, its effect on the harbor, use of facilities, and the cost of administering this mooring program; and, furthermore:

     (1)  [Moorage] Except for commercial maritime activities where there is a tariff established by the department of transportation, moorage fees shall be established by appraisal by a state licensed appraiser approved by the department and shall be higher for nonresidents[;].  The mooring fees shall be set by appraisal categories schedule A and schedule B, to be determined by the department, and shall increase accordingly, annually, to any cost-of-living index increase; provided that:

         (A)  Schedule A shall include existing mooring holders with an annual increase toward schedule B rates spread out evenly over a five-year period; and

         (B)  Schedule B shall apply to all new mooring applicants and transient slips on or after July 1, 2009;

     (2)  For commercial maritime activities where there is a tariff established by the department of transportation, harbors division, the department may adopt the published tariff of the department of transportation, harbors division, or establish the fee by appraisal by a state licensed appraiser approved by the department;

    [(2)] (3)  An application fee shall be collected when applying for moorage in state small boat harbors and shall thereafter be collected annually when the application is renewed.  The application fee shall be:

         (A)  Set by the department; and

         (B)  Not less than $100 for nonresidents;

    [(3)] (4)  If a recreational vessel is used as a place of principal habitation, the permittee shall pay, in addition to the moorage fee, a liveaboard fee that shall be calculated at a rate of:

         (A)  $5.20 a foot of vessel length a month if the permittee is a state resident; and

         (B)  $7.80 a foot of vessel length a month if the permittee is a nonresident;

          provided that the liveaboard fees established by this paragraph may be increased by the department at the rate of the annual cost-of-living index, but not more than five per cent in any one year, beginning [January] July 1 of each year; [and]

    [(4)] (5)  If a vessel is used for commercial purposes from its permitted mooring, the permittee shall pay, in lieu of the moorage and liveaboard fee, a fee based on three per cent of the gross revenues derived from the use of the vessel or two times the moorage fee assessed for a recreational vessel of the same size, whichever is greater[.]; and

     (6)  In addition, the department is authorized to assess and collect utility fees, including but not limited to electrical and water charges, and common area maintenance fees in small boat harbors."

     SECTION 5.  (a)  Pursuant to section 200-2.5, Hawaii Revised Statutes, the department of land and natural resources is directed to lease certain fast lands and submerged lands at the Ala Wai harbor using the request for proposals process for the public-private development, management, and operation of areas of Ala Wai harbor designated in subsection (b).

     (b)  The areas to be leased shall include but not be limited to:

     (1)  Row seven hundred and row eight hundred at the makai or ocean side of the Ala Wai harbor and adjoining the breakwater;

     (2)  The area immediately mauka or landward of row seven hundred, presently used for metered vehicular parking;

     (3)  The submerged lands between row seven hundred and row eight hundred;

     (4)  A portion of tax map key:             , comprising of approximately       square feet, presently used for harbor offices and permitted vehicular parking;

     (5)  Tax map key:  (1) 2-3-37:20, comprising of 15,199 square feet more or less, and is the site of the existing fuel dock facility; and

     (6)  Tax map key:  (1) 2-6-10:05 and 16, comprising of 38,369 square feet, more or less, and is the site of the existing haul-out and repair facility.

     (c)  The permissible uses under this lease shall include but not be limited to the following:

     (1)  A minimum of not less that       berths for vessels; provided that:

         (A)  Not more than       berths shall be available for vessels used for purposes of recreational boating activities that are also the principal habitation of the owners;

         (B)  Not more than       berths, including those allowed pursuant to section 200-9(c), shall be available for vessels issued commercial use permits; and

         (C)  All berths provided under this paragraph shall be made available to the public pursuant to department of land and natural resources rules, with moorage fees to be determined by the developer;

     (2)  Office space, including a minimum of          square feet for division of boating and ocean recreation use;

     (3)  Vehicular parking, including a minimum of        parking stalls for division of boating and ocean recreation use and for public metered parking;

     (4)  Commercial uses, including but not limited to restaurants, retail shops, marine supplies shops, and sundry stores, all made available to the public;

     (5)  Residential uses;

     (6)  Vessel fueling facilities;

     (7)  Vessel haul-out and repair facilities; and

     (8)  Vessel haul-out and storage facilities.

     (d)  The lease shall not exceed a maximum term of sixty-five years and shall provide for:

     (1)  A minimum lease rent that is the greater of a commercially acceptable per cent of the gross receipts of the lessee from the developed leased premises or a fair return on the fair market value of the vacant leased premises, as determined by appraisal by a state licensed appraiser approved by the department, with reasonable periodic step-ups in the minimum lease rent over the term of the lease; and

     (2)  A three-year development period with a fixed reduced lease rent.

     (e)  Chapter 171 and section 190D-33, Hawaii Revised Statutes, notwithstanding, all revenues from the lease shall be deposited in the boating special fund.

     (f)  Chapters 171 and 190D, Hawaii Revised Statutes, notwithstanding, the lease for the fast lands and submerged lands set forth in this Act shall be pursuant to section 200‑2.5, Hawaii Revised Statutes.  Further, section 171-53, Hawaii Revised Statutes, notwithstanding, the prior authorization of the legislature by concurrent resolution for the lease of submerged lands shall not be required.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect upon its approval.