THE SENATE

S.C.R. NO.

111

TWENTY-SECOND LEGISLATURE, 2003

S.D. 1

STATE OF HAWAII

 
   


SENATE CONCURRENT

RESOLUTION

 

AUTHORIZING THE BOARD OF LAND AND NATURAL RESOURCES TO LEASE SUBMERGED AND TIDAL LANDS OF THE HONOKOHAU SMALL BOAT HARBOR Through managed competition FOR COMMERCIAL, RECREATIONAL, EDUCATIONAL, AND RESEARCH PURPOSES.

 

WHEREAS, state government and private industry must work together to design and implement new and creative approaches for addressing the various economic challenges that Hawaii is facing; and

WHEREAS, during the 1998 Regular Session, the Legislature passed Senate Bill No. 2213, S.D. 2, H.D. 2, C.D. 1, enacted into law as Act 230, Session Laws of Hawaii 1998, adopting "managed competition" as a public policy to enable the State and county governments to implement public-private competition for government services through a process that "determines whether a particular service can be provided more efficiently, effectively, and economically by a public agency or a private enterprise"; and

WHEREAS, during the 2001 Regular Session, the Legislature passed Senate Bill No. 1096, S.D. 1, H.D. 1, C.D. 1, enacted into law as Act 90, Session Laws of Hawaii 2001, authorizing the State and counties to engage in the process of managed competition as appropriate; and

WHEREAS, the Legislature also passed Senate Bill No. 752, S.D. 1, H.D. 1, enacted into law as Act 299, Session Laws of Hawaii 2001, authorizing the Board of Land and Natural Resources, subject to the approval of the Governor and Legislature, to issue leases for small boat harbors and other boating facility properties for maritime and non-maritime related activities; and

WHEREAS, the State and counties have long used the private sector to provide public services to the people of Hawaii and have benefited from this outsourcing through increased efficiency and by gaining the use of resources that are owned or have been developed by the private sector; and

WHEREAS, the Auditor, in Report No. 01-09, reported that more than $130,000,000 is needed for repair and maintenance of the various facilities maintained and operated by the Department of Land and Natural Resources, Division of Boating; and

WHEREAS, in numerous reports dating back to 1993, the Auditor has emphasized the need to correct operational deficiencies in the state boating facilities program; and

WHEREAS, private companies continue to express interest in managing and redeveloping the marina areas in Hawaii and are committed to investing tens of millions of dollars in construction projects within the Honokohau Small Boat Harbor; and

WHEREAS, in the absence of state funds, this may be the only means to effect the needed repairs and development of this valuable state resource; and

WHEREAS, the creation of additional jobs, increased tax revenues, and the value added to existing facilities produced by any private capital investment in these small boat facilities would greatly benefit the State during this time of economic uncertainty; and

WHEREAS, if action is not taken soon, the State may miss the opportunity to avoid or minimize costs by utilizing the private sector's services and expertise to bring small boat facilities up to modern standards; and

WHEREAS, however, the Legislature is also cognizant that privatizing for the sake of privatization may not be the correct answer for Honokohau Small Boat Harbor; and

WHEREAS, Act 90, Session Laws of Hawaii 2001, only authorizes the State or county governments to contract for services "when there is a reasonable basis to believe that the service of equivalent or better quality" can be provided at lower cost; and

WHEREAS, adequate performance and financial data are needed to accurately evaluate the quality and cost to determine whether a bid represents an improvement in quality or cost of services; and

WHEREAS, the results of a cost comparison between a private and government operated small boat harbor facility would provide important criteria in the managed competition process for future reference; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-second Legislature of the State of Hawaii, Regular Session of 2003, the House of Representatives concurring, that pursuant to section 171-53, Hawaii Revised Statutes, the Board of Land and Natural Resources is authorized to lease submerged and tidal lands of the Honokohau Small Boat Harbor as it deems necessary for commercial, recreational, educational, and research purposes; provided that it meets the managed competition requirements of Act 90, Session Laws of Hawaii 2001; and

BE IT FURTHER RESOLVED that the authorization provided under this Concurrent Resolution only apply to submerged and tidal lands of the Honokohau Small Boat Harbor; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor and the Chairperson of the Board of Land and Natural Resources.

Report Title:

Honokohau Small Boat Harbor; Lease to Private Entities