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REPORT OF THE COMMITTEE ON <br />GOVERNMENTAL OPERATIONS AND EXTERNAL AFFAIRS <br />DATE: March 17, 2026 <br />PLACE: Council Chambers <br />Kailua-Kona, Hawaii <br />TIME: 9:01 a.m. <br />Council Chair and Members <br />Hawaii County Council <br />Hilo, Hawaii 96720 <br />Re: Comm. No. 775 <br />Your Committee on Governm6ntal Operations and External Affairs, to which was referred <br />Communication No. 775, reports as follows: <br />Communication No. 775, transmitted by Mayor C. Kimo Alameda, dated February 26, 2026, <br />requests the Council's review and confirmation of the nomination of Steven Pavao to the Cost of <br />Government Commission. <br />Executive Assistant to the Mayor, Micah Alameda, was present in the West Hawaii Civic Center to <br />introduce Mr. Pavao, who was present in the Hilo Council Chambers. <br />Committee Members Jenn Kagiwada and James Hustace spoke in favor of the appointment. <br />Acting Chair Matt Kaneali`i-Kleinfelder referenced a previous recommendation from the Cost of <br />Government Commission to increase salaries for several positions within the County of Hawaii <br />over the next five years. He then asked Mr. Pavao, in light of debt servicing obligations and major <br />upcoming projects, how these factors would influence future discussions and decision -making to <br />address the need to provide competitive wages while managing the projected debt over the next five <br />years. Mr. Pavao responded that he agreed on the importance of considering both the County of <br />Hawai`i's debt obligations and its revenue and cost capacity. He noted that during his time on the <br />Salary Commission, the group examined positions requiring specialized licenses and worked to the <br />best of their abilities to make compensation more competitive with the private sector. He clarified <br />that the Salary Commission did not take the County's overall budget into account, focusing solely on <br />salary matters. He emphasized that the Cost of Government Commission must consider both debt and <br />wage impacts in its recommendations. <br />Pursuant to Article V, Chapter 2, Section 5-2.2 of the Hawaii County Charter, members of the Cost <br />of Government Commission shall be appointed by the Mayor and confirmed by the Council. <br />GOEAC Report No. 105 <br />