Hilo Councilman Aaron Chung expressed some buyer’s remorse this week over supporting a $99.75 million bond. ADVERTISING Hilo Councilman Aaron Chung expressed some buyer’s remorse this week over supporting a $99.75 million bond. “The $100 million bond float approval was
Hilo Councilman Aaron Chung expressed some buyer’s remorse this week over supporting a $99.75 million bond.
“The $100 million bond float approval was probably the worst decision I made,” he said during Tuesday’s Finance Committee meeting.
Chung, who expressed concern about change orders and county-paid overtime costs, said he felt the county was doing too much too fast, resulting in poor planning and less value for taxpayers.
“What we overlooked was how quickly the administration was going to move,” he said. “I did not anticipate that.”
The County Council unanimously approved the bond in June 2015 to pay for dozens of projects around Hawaii Island. Half of the amount falls under the Department of Parks and Recreation.
The Mayor’s Office didn’t return a request for comment by deadline.
In response to a question from Chung, county Finance Director Deanna Sako said the county’s annual debt service is at about 9 percent of expenditures. That would go up to 13 percent if the bond authorization was fully issued.
The Government Finance Officers Association recommends a ceiling of 15 percent.
“We definitely have room to grow,” Sako said.
Chung raised the issue Tuesday in response to the county paying overtime costs to expedite completion of the Ka‘u gym and emergency shelter and Hilo Municipal Golf Course renovations, which coincides with the end of Mayor Billy Kenoi’s final term.
James Komata, deputy parks and recreation director, said the county covered about $97,000 in overtime hours for the gym renovations. The facility opened last month.
He said workers were flown from Oahu to expedite the work, and the county also paid for their travel and lodging costs.
Change orders, which are added costs after a contract is awarded, totaled $693,031, including overtime, for that project as of Sept. 30, according to a report to the council.
The project, originally pegged at $17 million, is largely state funded.
At the golf course, the county also paid $224,189.98 for overtime work to get the clubhouse and other work done by the end of the month.
The full project, also initially contracted at $17 million, will be finished by the end of the year.
“We were trying to keep as much to the original schedule of the project to be able to follow through on commitments” with concession vendors, Komata said. “The balance of the project will be completed by Dec. 31,” he added.
Chung requested time to further discuss the matter with Parks and Recreation, but staff from the department didn’t attend the Tuesday meeting. The council voted to postpone the matter to allow the next council to pick it up.
Parks and Recreation Director Clayton Honma was on vacation and Komata said he was at a project site.
Opponents of the Kukuihaele park project near Waipio Valley also testified during the committee meeting, with some calling the $5 million project, initially estimated at $2.5 million, fiscally irresponsible.
“I am here because I must ask that you provide a more powerful system of checks and balances of tremendous overspending at least in one department,” said Jeanne Teleia.
Opponents say the project is too large and will change the character of the rural community.
One woman wore a shirt with a fake ax sticking out. It read “Stabbed in the back by County Council” in red letters.
Komata said estimates are based on input from a design consultant and don’t reflect actual bids.
Some additional costs were added to address concerns from the community, including space for a future playground and grading work. But, he added, “that doesn’t account probably for the entire difference.”
Email Tom Callis at tcallis@hawaiitribune-herald.com.
