STAND. COM. REP. NO. 3353

Honolulu, Hawaii

RE:    H.B. No. 2198

       H.D. 2

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 2198, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS FOR UKUMEHAME RESERVOIRS,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the issuance of special purpose revenue bonds to provide financing to assist West Maui Investors, LLC, with two Ukumehame reservoirs.

     Your Committee received written comments in support of this measure from the Department of Land and Natural Resources and the American Society of Civil Engineers.  Your Committee received written comments on this measure from the Department of Budget and Finance.

     Your Committee finds that Ukumehame reservoir numbers 2 and 3 are earthen embankment dams constructed side-by-side along the bottom of the western slope of the Ukumehame Gulch and are regulated as one dam and reservoir facility by the Department of Land and Natural Resources.  Your Committee further finds that following the discovery of a major leak from Ukumehame reservoir number 3 in 2008, the water level in both reservoir numbers 2 and 3 were drawn down to minimize the risk of failure, and the owners modified portions of the water system to bypass reservoir numbers 2 and 3.  Your Committee also finds, however, that the reservoir owners still need to implement remediation work that would address public safety.

Your Committee finds that Ukumehame reservoir numbers 2 and 3 constitute a project as defined in Act 147, Session Laws of Hawaii 2012, and the financing thereof is assistance to dam and reservoir owners.  Your Committee also finds that the issuance of special purpose revenue bonds for the purpose of this measure is in the public interest and for the public health, safety, and general welfare.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2198, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

JILL N. TOKUDA, Chair