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8/8/2019 1-2-09 Ltr From Clyde Sonobe re double taxation
1/3
8/8/2019 1-2-09 Ltr From Clyde Sonobe re double taxation
2/3
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
8/8/2019 1-2-09 Ltr From Clyde Sonobe re double taxation
3/3
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