1-2-09 Ltr From Clyde Sonobe re double taxation

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  • 8/8/2019 1-2-09 Ltr From Clyde Sonobe re double taxation

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  • 8/8/2019 1-2-09 Ltr From Clyde Sonobe re double taxation

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    Sena

    torLesIhara,Jr.

    Janu

    ary2,2009

    Page

    2

    Oleloisresponsiblefortheprovisionoffacilitiesandequipmentforthe

    productionofprogram

    mingtobecablecastonP

    EGaccesschannels(which

    wouldincludegovern

    menttypeprogramming).

    B.2.

    Oleloisresponsibletotraingovernmentorganizationsandentitiesintheu

    se

    ofaccessproduction

    facilitiesandequipment.B.3.

    Oleloisresponsiblefortheprovisionofsupport

    servicestotheusersofPE

    G

    accessfacilitiesandequipment(whichwouldin

    cludegovernment

    organizationsanden

    tities).B.5.

    ThefreepilotproposedbyOleloaswellastherecordingofmeetingsforlater

    cablecastonPEGchannelsare

    servicesthatOlelocould

    providetogovernmententities

    aspartofitscurrentcontractwithDCCA,andatnocosttothegovernmententities.

    Olelo'sReceiptofAccessFund

    ing

    UndertheDecember24,1998contract,asamended,D,Oleloreceivesand

    holdsamountspaidbyTWEforsupportofPEGaccessasrequiredbytheDepartment.

    Purs

    uanttoD&ONo.154,asa

    mendedbyD&ONo.261,theaccessoperatingfee

    "shallbeusedforpublic,educa

    tional,andgovernmental("PEG"or"Access")usesa

    nd

    forsuchotherpublicpurposes

    asshallbedesignatedby

    theDirector."[underlined

    for

    emphasis].Inexchangeforacc

    essfeesandcapitalfund

    paymentsfromOceanic,

    OleloagreedinGtoperformallservices,duties,responsibilitiesandobligations

    requiredundertheDCCAcontract.

    BasisforOlelotoChargeFees

    forPEGaccessservices

    AlthoughthecontractissilentonwhetherOleloisallowedorprohibitedfrom

    chargingfeesforitsservices,D

    CCAhaslongcontendedbothpubliclyandprivately,

    thatOlelo/PEGsshouldnotcha

    rgeusersforthePEGacc

    essservicesprovided(with

    thee

    xceptionofnominalfeesforworkshops).

    Olelowascreatedtoma

    nagethePEGaccessfina

    ncesandtooperatetheP

    EG

    facilities,channelsandotherre

    sourcesfortheislandofO

    ahu.Oleloagreedtoperform

    theseservicesundertheDCCA

    contractinexchangefor

    paymentoftheaccessfee

    s

    andcapitalfundpaymentsfrom

    Oceanic.ItisDCCA'spo

    sitionthatOleloshouldno

    t

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    Sena

    torLesIhara

    ,Jr.

    Janu

    ary2

    ,2009

    Page

    3

    companiescouldcomplainthatPEG

    organizationshaveanunfaircompetitive

    adva

    ntageov

    erpriv

    atecompan

    iessincePEGshav

    eacqu

    iredequ

    ipment,facilitiesa

    nd

    staffingthrou

    ghgov

    ernmentdir

    ectedfunding

    .

    The2004DCCAPEG

    A

    ccessPlanacknowledged

    thatPEG

    access

    organizationshav

    ebeeninv

    olvedinactiv

    itiesthatsomeh

    av

    edeemednon-t

    raditiona

    l,

    su

    ch

    as

    ,respondingtolocalgo

    vernmentRFPsforv

    ideoa

    ndcaptioningserviceswh

    ich

    resultsincompetitionwithprivateorganizations.

    Historica

    lly,

    DCCAhasallowedPE

    G

    acce

    ssorganizationsdiscretion

    whenrespondingtoRFPsissu

    edby

    Cou

    nty

    gove

    rnmentsandtheLegislatu

    re,andunderthePEG

    Pla

    n,

    DCCAcontinuedthis

    polic

    y,

    despiteconcernsraised

    by

    apriv

    atecontractortha

    tPEGshav

    eaninherent

    unfairadv

    antagesincethey

    are

    pu

    bliclyfunded

    .

    Pleasecallmeify

    ou

    hav

    efurtherqu

    estionsorrequ

    irefurtherinformationonthis

    matt

    er.Thankyou.

    Sincerely

    ,

    (7&X126

    ClydeS

    .Sonobe

    CableTelev

    ision

    Administrator

    Enclosu

    res

    c:

    Law

    renceM

    .Reifu

    rth

    ,

    KealiiLopez