Loading...
HomeMy WebLinkAboutMIN GREDC 2020/09/15 2018-2020 Committee on Governmental Relations and Economic Development 27th Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii September 15, 2020 CALL TO The regular meeting of the Committee on Governmental Relations and Economic ORDER: Development was called to order at 2:36 p.m., in the Council Chambers, Hilo, by Ms. Ashley L. Kierkiewicz, Chair. ROLL CALL: Present: Ms. Ashley L. Kierkiewicz, Chair Ms. Susan L. K. Lee Loy, Vice Chair Ms. Karen Eoff, Member (via videoconference from Kona) Ms. Maile Medeiros David, Member (via videoconference from Kona) Mr. Matt Kaneali`i-Kleinfelder, Member (came in later) Mr. Herbert M. "Tim" Richards, III, Member(via videoconference from Waimea) Ms. Rebecca Villegas, Member (via videoconference from Kona) Absent& Excused: Mr. Aaron S. Y. Chung, Member Ms. Valerie T. Poindexter, Member STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: The following individuals registered to make provide comments for Comm. 430.35, and came forward when called by the Chair: Amadeo Markoff. Robert Golden. Susan Kim. Diane Franciosa. CHR KIERKIEWICZ: Mr. Clerk, are there any other testifiers? MR. BROWN: Madam Chair, that is you last testifier for your committee. GREDC-27 September 15,2020 CHR KIERKIEWICZ: Thank you. Thank you all for joining us today and providing you mana`o. At this I will be closing public testimony and moving on to business of the day. Mr. Clerk, if you could read in our communications. COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 430.35: REQUESTS A PROGRESS REPORT FROM THE 2018 KILAUEA ERUPTION RECOVERY TEAM REGARDING PROGRESS BEING MADE TO ASSIST PUNA RESIDENTS From Council Member Ashley L. Kierkiewicz, dated September 8, 2020. Motion to Close File: Ms. Lee Loy moved to close file on Comm. 430.35. Seconded by Mr. Richards. CHR KIERKIEWICZ: If I could call forward our Recovery Officer Douglas Le. I believe there is a PowerPoint presentation. You know,just to kind of set the contacts for this conversation, was nearly a year ago that this body had adopted the interim recovery strategy. And so, you know, recovery of the district helping Puna residents bounce forward, revitalize the area,right, with vision, vitality, that is all still singular, number one focus from my office. And it requires a partnership with community, with the recovery team. And I feel that the document that we adopted with interim recovery strategy, it may not be an impressive technical document that Tetra Tech and others maybe working on. But it was important, because it was community driven and informed. And these were things that were elevated by community, over the year and a half that I was representing the district. And so I would love, Douglas, at this time if you could just take us through, you know, where the recovery team is at this point. And the progress made to meet the goals and objectives, and priorities that were laid out in the interim recovery strategy. And work on other plans and strategies that are meant to help recover and uplift our people. (Note: At this time Recovery Officer Douglas Le came forward to address the members of the Committee.) MR. LE: Good afternoon, Douglas Le Recovery Officer with the County of Hawaii. Thank you, Chair. Thank you, Members of the Council for having me today, and you know, for creating a space for this conversation together. You know, in preparation today, I took time to review and really reflect upon the priorities that were called out in the interim recovery strategy to really talk about, where we are now based on those priorities. But also to take a moment to provide context on the recovery plan, and how the interim recovery strategy kind of pivots to and forms the overall Kilauea Recovery Resilience Plan that we are working to finalize as we speak. Page 2 GREDC-27 September 15,2020 And so I'll really use the structure of that plan, as a way to cover items that are requested in the agenda. As well as to address the concerns and points, that were brought up as part of public testimony as well. And if there are any sound issues, please let me know. MR. LE: So in the interim recovery strategy, several priorities were lifted up. In terms of work to recover infrastructure, the most completed projects are the temporary work on Highway 137, those at Isaac Hale Beach Park, and also of course Highway 132, which enabled many isolated farms and homes to be able to start to return and to rebuild. Much of the work since then is to be able to secure and make decisions related to the restoration of other infrastructure, which I will finally go into. This is the public infrastructure side that is being supported with the FEMA funded made available to the County. In the areas of developing capacity and financial tracking and reporting, really having a team like ours to be able to focus on this very complex and multi-faceted work of recovery you know, I find it a privilege to be able to work on these important issues for the Lower Puna community and our island as a whole. A lot of the work does involve inter-agency coordination with County partners, the feds, federal agencies, and State agencies. On the funding piece, while much there are scales of funding that have been committed to the County, kind of the work to secure it and to account for it. This is really just beginning, as we start to set priorities with plans, and as we move some of the projects more specifically forward. Really our work to tackle community engagement and decision making, the task force work that I'll speak to you shortly about, kind of where we are relative to standing up recovery's core functions, are areas that, you know, there are spaces we didn't have before, and we've been working to really make relevant for what the recovery process means. You know, we have worked with many of the voices that have spoke today, and have spoken for months now to really understand their perspective, their vision for themselves, and their vision for the broader community, and really finding ways at every kind of point along how issues are discussed, decisions are made, on how these are lifted up. I can appreciate, because we've had conversations about how folks see that the outcomes are different from the visions that they articulate, but know that the input and the voices are brought to the table when kind of across the different kuleana that we share decisions do need to be discussed and decisions made. One key piece, last September when the interim recovery strategy was adopted was to stand up the disaster case management program. You know, support for Page 3 GREDC-27 September 15,2020 really those who were of the highest need in terms of their recovery process. Of the 1,500 individuals who may have been contacted by NPP (Neighborhood Place of Puna), you know, these are folks who sought assistance from our federal partners early on following the eruption. We were able to manage kind of at a tide, a caseload of 176 survivor households, and to be able to resolve some cases from there. You know, our partner in this Neighborhood Place of Puna, is through funding with the original funding with from FEMA is able to work with us through February 2021 as needed in order to continue to support folks. And really, the most direct support that folks have been receiving also comes from the partnership with the Kilauea Hui, its members and its donors, who have been able to deploy $694,000 to over 100 households in the recovery. The vast majority of those dollars have been spent on replacing catchments, repairing homes to help get folks home. I know it doesn't resolve all needs, but I think for the families who have been able to access these resources, I know it helped them. And in kind of the final pieces as well, you know, moving forward with the comprehensive recovery plan that looks across all the sectors related to disaster recovery from the Kilauea eruption, and a focus on the economic recovery plan as well. I'd like to spend some time today kind of going through what this means and how it pieces together relative to the updates to actions and progress. But if it's alright, I would like to kind of pivot into that at this point in time. (Note: At this time, Mr. Douglas Le provided a PowerPoint presentation to the members of the Committee. For viewing of the presentation, see the DVD copy of the meeting proceedings on file in the Clerk's Office. A copy of the presentation is made a part of the record, see Comm. 430.36.) MR. LE: Thank you for the opportunity to really kind of walk through at this time and kind of provide an update to where we are across a lot of these priorities that are coming across from the community. CHR KIERKIEWICZ: Thank you, Douglas. At this time I'd like to open it up for questions or comments from my colleagues. Mr. Kaneali`i-Kleinfleder, go ahead. MR. KANEALI`I-KLEINFELDER: Doug, as usual a very, very informative briefing, thank you. My question stems from some the constituents that I've talked to, especially those who were testifying today. The HUD (Housing and Urban Development) funding applying towards affordable housing as a priority, you know, if we—what does that mean for recovery dollars and how much money—all of the funding that we give is going to be put directly to affordable housing. Which I think is important, but maybe not the most crucial aspect of recovery in Puna. Page 4 GREDC-27 September 15,2020 MR. LE: So you know, I think from what I heard from your question, really how did we prioritize and focus on housing, right, for the allocation of our HUD CDBG-DR (Community Development Block Grant Disaster Recovery) funding. You know, within the requirements of HUD, and it's not unique to our disaster or to our island, you know, they require all DR(Disaster Recovery) grantees—I'll just use a shorthand to focus on what is our unmet needs. So the disaster recovery funding is based on unmet need across the four sectors of eligible activities as HUD calls it. Housing, economic revitalization, infrastructure. You know, we had to really work and look at multiple data sets, whether it'd be the damage assessments that the County conducted following the eruption, assistance that folks sought from FEMA, assistance that folks sought from SBA (Small Business Administration), and the damage assessments that generated from it. And based all these data sets to understand and really answer core question that HUD requires all of its grantee partners, "What is your housing need?" Really how much housing was damaged. We know that there were 612 residential structures, and as many as 700 structures total including nonresidential ones. But we also know there's plenty of damage to homes, where lava never necessarily touched. You know, from the gas and the tephra. And so the bottom line around the housing unmet needs is to tune of$269 million dollars when we looked across all those data sets. We then looked at what housing assistance has been received from SBA loans awarded, to the individual assistance from FEMA, and we're still trying to crack how to really get a full picture on insurance. MR. KANEALI`I-KLEINFELDER: Yeah, I was going to say that as well. That's private insurance that may have covered a value of the home, and they're gone. MR. LE: That's right. Yeah. I think—it's not unique to us, but on the insurance issue, we have been trying to coordinate with the State in terms of understanding what data on insurance payouts gets reported that we can also have knowledge on. But a lot of the issues are often around individuals kind of certifying what their insurance payouts were, for us to understand the bigger picture. And I'll get to your question, I'm just at the contacts. MR. KANEALI`I-KLEINFELDER: No, this is the full picture of what you're looking at. Thank you. MR. LE: Yeah. So we look at, you know, it's simple math, yeah? What is your housing need based on kind of the methodology set and the data sets we're looking at and have available to you? What resources have come to bear, and then what is the unmet need particular to housing. And so the Federal Register Notice for our allocation of funding was very clear for grantees receiving funds Page 5 GREDC-27 September 15,2020 for disaster in 2018, and 2019, that we needed to prioritize our housing unmet need, and to have addressed our housing unmet need with government dollars and other sources before we allocate funding towards economic development, or infrastructure projects. That was kind of the—one of core requirements that we really had to address, in terms of prioritizing where the available funding would be allocated to. So that's why the focus on housing, even though I know that there are other kind of unmet need issues on economic development, those opportunities that are out there still, and potentially with infrastructure. MR. KANEALI`I-KLEINFELDER: So does HUD prioritize housing, is that what you're saying? MR. LE: Mm-hmm. MR. KANEALI`I-KLEINFELDER: And then do they set a dollar amount that has to used, or do they say you have to look at housing first? MR. LE: Yeah. MR. KANEALI`I-KLEINFELDER: And then you can go down the list from there, or is it you must use x percentage of funding that we give you for housing and then you can move on? MR. LE: Their priority is really set on housing first. MR. KANEALI`I-KLEINFELDER: Okay, which make sense, housing and urban development. MR. LE: Mm-hmm. And really the block grant's function in a way where, you know, within the realm of housing, we can really develop projects and programs that meet our immediate needs, right. If you think about the communities across our country that have—dealing with wildfires, dealing with hurricanes, dealing with tornados, you know, their recovery path, and their housing strategies will all look different. And so HUD does provide flexibility, in terms of use of the funds. But at this point, because they've been at it for almost 30 years, there are kind of standard programs that many grantees have developed funds that HUD kind of promulgates, right. They don't limit us to it, whether it's in a flood context, or rebuild, an elevation, a buyout as well, a repair, you know, I think those aren't options that we have available to us, for our specific disaster. But to answer your question around the flexibility and how and where HUD gets involved. You know, they have a track record about these programs, it's like in the different communities on the housing side. And they give us advice and connect us to other grantees that have also kind of worked on housing recovery strategies. But again, the block grant is flexible in that way, in terms of allowing Page 6 GREDC-27 September 15,2020 a jurisdiction to prioritize the specific housing strategies it wants to move forward with. MR. KANEALI`I-KLEINFELDER: So is there a certain percentage of funds that has to go to housing? MR. LE: As long as there is unmet housing recovery need, all of the funding needs to address housing unmet recovery need. MR. KANEALI`I-KLEINFELDER: All of the funding? MR. LE: Until our housing unmet recovery needs are addressed. MR. KANEALI`I-KLEINFELDER: And which funding, I mean this is the $80 million, this is the $23, I mean which or all of it? MR. LE: For sure it's for the $83 million, the allocation that we've been able to move forward with. MR. KANEALI`I-KLEINFELDER: Okay. MR. LE: You know, the Federal Registry Notice related to the $23 million dollars, which is forth coming. We'll articulate and answer some of these questions, but we don't have it yet and it's probably a bit of a ways away. And so I don't have an answer just yet, on those additional funding. MR. KANEALI`I-KLEINFELDER: Okay. And then the provider that's getting the next plan that is being developed, who is theoh, this is going out for bid, yeah? MR. LE: I was speaking to the kind of different approach to Puna Strong, so the community-based is disaster management. So this is creating a grant making program, with capacity building for organizations in the community around community-based recovery. So it is in a planning process, and it isn't similar to the work that we have been in for over pass year and half. MR. KANEALI`I-KLEINFELDER: That's great, so not redundant. Are we hiring someone similar to Tetra Tech? I mean whatever happened with Tetra Tech, where are they at? MR. LE: And so we were able to complete our work with Tetra Tech, as a firm at the end of June in terms of kind of defining deliverables, and so we are wrapped up with them. Page 7 GREDC-27 September 15,2020 MR. KANEALI`I-KLEINFELDER: Are we back in discussion with them for anything, are they done and gone and off the table? Someone asked me what's with Tetra Tech what are they doing, are they still involved? MR. LE: Yeah. You know, they wrapped up at the end of June, kind of with our contract. And really the work is being led by our team, with our partners now. MR. KANEALI`I-KLEINFELDER: Okay. So I'll circle back then. The funding that we get, I mean almost an entirety, will be applied to housing as a priority. And then from there we can focus on other things that we want to do when it comes to other HUD priorities like economic rebuild and that kind of thing. MR. LE: You know, as long as we can really address the prioritizations that HUD puts out around our unmet housing need. The HUD dollars is an important resource in the recovery process. But you know. there's also the FEMA assistance available to us on pumping infrastructure; and you know, I know the County hasI know we've supported local community organizations that have also applied for funding through the economic development agency that also has recovery funding available on the economic development side. I'm really driven by, you know,jobs after growth, and job growth. MR. KANEALI`I-KLEINFELDER: Okay. Thank you. Appreciate the information. I yield for now. And thank you for your time again, always detailed. Thank you. CHR KIERKIEWICZ: Thank you, Mr. Kaneali`i-Kleinfelder. Any other questions? Ms. Lee Loy. MS. LEE LOY: Thank you, Chair. You know, Douglas, I don't know where to start. And I'm going to take a step back, because Council Member Kierkiewicz, and Council Member Richards, and myself kind of started the ball rolling, you know, with the money from the State. I'm going to try and be very measured because I think I'm frustrated, and I don't live in that community. Douglas, total funding that we have around this recovery, can you give me a thumbnail sketch? I think it's $40 (million) from the State, another $20, I heard $83, and an additional $23. So how much are we ? MR. LE: Back of the envelope math, and just in my head, really we're looking at around $260 million between what we know. So resources made available from the Governor's Office, the State Legislature, what we anticipate obligations with FEMA for public assistance, as well as the HUD dollars that we've been talking about. Within that number I haven't included the newer allocation from HUD. You know, there are real numbers, right. But we're just always away, from being able to move forward with those resources. Page 8 GREDC-27 September 15,2020 MS. LEE LOY: And then I'm a little frustrated, because I think I counted the better part of 10 different plans. Recovery plan, let me seeI'm sorry but—road restoration plan, economic recovery plan, master plan, tourism strategy plan, feasibility study. I cannot help but feel frustrated for this community. We're sitting on $260 million and right now all we have to show for it is plans. And I understand that these plans have to drive some business decisions, but when is the rubber going to hit the road? Douglas, this is what the community is asking for. And I feel very tied to this recovery strategy, and this recovery plan because Council Member Richards, and myself went to bat for this community at the beginning of our term. We put down priorities in our district, to focus on this one. And yes, other things have emerged since then. Douglas, when are we going to get to the action? Like let's just cut to the bone. When are we going to get the action, when are all these plans going to turn into action? MR. LE: So the core plans that really help to drive the work that we have done, and get to be done. Are the Kilauea Recovery Resilience Plan, and the Economic Recovery Plan. You know, we talk about and really look at the other strategies, and times that are out there as really pieces of the puzzle. As we talk about, you know, really identifying projects and actions. But to more directly answer your question, where we have really, where the rubber hit the road. You know, around your analogy, is you know, the immediate assistance through Kilauea Hui, to support survivor households in terms of rebuilding their own homes and returning to their homes. You know, our ability to launch the Kilauea grants program, and really make final decisions around a grant rewards. The source of these funds is the $20 million grant from the State Legislature. And that will provide support to you know, repairing infrastructure, road access, repairs to facilities and also agriculture. So we're excited to kick that off and be able to work with the recipients of those grants on their individual projects, and their individual communities. The really—and I can understand the frustrations, because I live this work every day as we all do, and I feel them too. I'll just say that once. There are just many steps to take, in order translate the allocation or commitment of dollars to securing what we need to be able to start projects, whether it be restoring a road, you know, closing on, you know, assistance to a family through a grant, and we're still in the thick of that, unfortunately. I was connecting with some of our colleagues in California who are, you know, in the really devastating Camp fires in 2018, you know, seeing where they are, where they learned, you know, what they navigated with our same federal partners. And you know, I was surprised or maybe not surprised to hear that they're in a very similar boat in terms of timeline for all these steps of securing funding, getting the funding actually, you know, not even in the bank so much because all these federal dollars are also reimbursement based, and draw-down based, but to basically be able to say, these are the programs, we're opening the doors, and we're starting to get these dollars to help people and to really make Page 9 GREDC-27 September 15,2020 recovery happen in the community. And it's unfortunate that these steps and our close coordination with our State and federal partners requires time but also doesn't always provide a clarity of timeline and when. And so the way I see it, it's my responsibility to keep things moving as much as I can to follow up, to really push and try to get through kind of if there are log jams or to find out when we can find things out. I think Pohoiki Road is a good example, where we've stepped up and done our piece. We are waiting for our partner FEMA,just to give us the notice to proceed and we can start. I understand that, you know, this provides context that may already be known, right, but I think this is what is required to be able to move this work forward. And so you know, between the immediate assistance that the K-Hui folks have been able to leverage these grant programs that we are kind of getting out off the ground. That is really just getting resources to communities to rebuild or to develop programing, you know, that's where we can measure some progress. MS. LEE LOY: Just real quick. You mentioned reaching out to other municipals and our friends, you know, what's the average timeline for someone, they got run over by a tornado? And maybe if we understood, right, that something as devastating as that kind of act of nature from the event until the first home is stood up. What's the average timeline? Do we know even that? Because I almost feel like we're asking for so much time from our community, and they're putting in the work. But it's not resulting in the vertical part. Do we know on average? MR. LE: So I don't have a specific average figure for you. One resource that I looked into I think as I started to come into this role, was around the time the Federal Office of the Inspector General actually issued a report really tracking HUD, and how—and their timeliness from the allocation of funding to a grant agreement and how that has shifted over the years. You look back, you know, almost 15 years to the date of such a watershed moment like Hurricane Katrina that hit New Orleans. Things have gotten slower, I'll say that. That was take away from the OIG (Office of the Inspector General) report. So it is unfortunate, because you know, our community members clearly articulated that today. Around what that means for community recovery, and communities all across the country are feeling that same frustration. MS. LEE LOY: Douglas, how about this. Is there a like a ripcord, when we're kind of going down the path, we're not getting anywhere, we're 30 months in. Do we keep, like we're stuck in a tunnel and we got to get to the end, or can we pull that ripcord and pivot and maybe try something else that's been prioritized by the community. Do we have that ripcord built into some of these recovery strategies? Again, I'm trying to be very measured. I just, I'm feeling the frustration and I'm not living there; I'm not driving in there; I didn't have a business in there. You Page 10 GREDC-27 September 15,2020 know, we're filling out applications. At some point there has to be like, "Hey, this isn't working, gang. We got to move,pulling the fire alarm, we're moving into another lane." Do we have that, and what does that look like? And how do we message that to the community? MR. LE: So one way that kind of our team's been trying to focus to address the concern that you're raising is, what is in our control and what can we move forward with, with the resources that don't require hundreds of hour of time, and months of waiting for a governmental actor to sign off on something. I don't mean to minimize the really close work we do with our federal partners, because it's a marathon. Its important work, but we are kind of at the hip with each other. I think, you know, your example of a ripcord regarding this really significant federal funding, is a scary one. I understand the frustrations around it. I'm proud to carry this work forward for the county, and community everyday with our federal partners. So it's really around kind of insuring that not only can we secure the funding to start the work, but we also stand it up in a way, so that with federal dollars it doesn't come and blow back on us ten years down the line. And really, you know, in some of the work that I've been exposed to but also hear from some of our partners too, you know, what does it mean to have an audit risk ten years later on some of these federal grants? That means, you know, someone who received $50,000, $100,000 of assistance, all of a sudden folks come calling for that funding. The money is not there, the house is rebuilt. You know, these challenges that we really need to protect not only the taxpayers, but, you know, the service we're trying to do for the folks who are benefitting from the work. So you know, I think progress on being able to move these larger really federal kind of sources of funding, to able to support projects and get projects started is a huge priority. It's something that I personally work on every day, amidst other realities. But then what can we do to move things that we have control over, right? So that people are actually getting assistance, and people are feeling empowered in their own recovery has been where we've been focusing. While we also work on the priorities that take a longer runway, and a more significant investment of time. MS. LEE LOY: You know, Chair, I'm going to yield. I feel like, you know maybe Douglas, you know, I want to help. I guess, I kind of get over the frustration here. But also legislatively I heard one testifier, Susan Kim—and the irony is when I started this work with Ms. Kierkiewicz, Susan and I, I don't think we got off on the wrong foot. She had a goal, and I had one. And back then the conversation was, the road to recovery starts with a road. And I pushed back and said no, the road to recovery starts with resources. We need money. Page 11 GREDC-27 September 15,2020 But when I'm looking at$260 million in the span of 18 months. And yes, we are doing our part with leveraging the State money, the grant; the gifts; the HUD money; the CDBG money. I like that we're looking at the Mass Transit Master Plan and trying to dovetail some of the other resources that the County has put into. And blending them in together to manage it, I understand it. But you know, I heard Susan loud and clear too. If it takes the Council legislating some timelines, you know, we have a new Administration coming in, you know, it might be a better way to chart a course to hold everybody accountable to some timelines. I don't know, maybe that's another conversation. But, you know, Douglas I'll definitely reach out to you, and see how we can help, and yeah, begin to put up some guardrails, so everybody's working hard and we're actually turning plans into action. Chair, with that I yield. CHR KIERKIEWICZ: Thank you, Ms. Lee Loy. Anyone else? MR. RICHARDS: Chair? CHR KIERKIEWICZ: Mr. Richards, go ahead. MR. RICHARDS: Thank you. Douglas, as always your report is very complete, and very articulate. That being said, my frustration, I don't think it begins to compare to some of our testifiers, but I have to weigh in on this, because I'm deeply concerned. And just start with a few things, you know, referencing with Council Woman Lee Loy mentioned. I heard the word "plan," "strategy," and "taskforce"used over and over again. And it was to be fair to you, I know you didn't start when this all started, and you came in on it later. But the frustration of planning, and planning, and planning. The lava episode started back in May of 2018. And very problematic, we all know that. We went to the Legislature and you know, I'm listening to you, from what I gather we have $260 million committed. I think from what I saw on the PowerPoint, we had $11 million extended in projects in three quarters of million dollars to do with community capacity. But that still leaves $250 million, or $245 million unexpended. And you know, again, listening to the community, like Sue, I don't live in that community. I was going down there three times a week, initially to help out in the shelters. And we went to the Legislature to get this money to jump in and get a kick going, helping the community come forward. I get the fact that roads we ran into some problems, and who would of thought that lava stays that hot for that long. I think there's some learning there. I go through this list, and what I'm hearing is something I would of expected a year ago. Maybe a little bit longer. The question for you Doug is when was the taskforce organized? MR. LE: We first brought the taskforce together in December of 2019. Page 12 GREDC-27 September 15,2020 MR. RICHARDS: Okay. And I think the plans that we've discussed, and the strategies in going forward and all that. I get it. And I think that's an exercise for the future, but for right now I know we've gotten work done. Where are with Pohoiki and the completion of the projects? What has actually been finished? MR. LE: So specific to Pohoiki, what has been completed to date is that the County has submitted the revised plans for what the restoration of the inundated portion of what the road means. That's something that FEMA needs in order to complete their final kind of environmental historic preservation review, before they can issue this notice to proceed. You know, as soon as we get the notice to proceed, our folks at DPW (Department of Public Works) are ready to start work on the road. In the months that have ensued, they've been working to get rights of entry, complete permitting, you know, do all the preconstruction work that is important so that the minute we can begin construction, it can happen. But really the notice to proceed is a critical step, even if it requires kind of patience with FEMA. Because starting the work prior to that, really puts the dollars to do the work at risk. And so that's why the focus on being able to move forward with the notice to proceed. You know, I think the scale of funding that's been committed to this recovery work is significant, right. There's no question about it, in a way that the eruption was a very significant event in our community. But one of the realities is that, you know, the work that I've detailed means that the funds aren't actually in hand for us to start spending on. You know, being able to reach milestones, like to notice to proceed with FEMA on road restoration, and being able to get into a grant agreement with HUD, to do an environmental assessment for the use of those funds, those are the work steams that we've been working on. But they all need to fall into place before we can open our doors. And start to help people with these available dollars, or to start projects. So I know the scale is really an eye popper, right. But understanding like what we have to date, expendable to us and what we authorization to spend and start work with, is a really kind of important distinction, relative to the big picture of the resources that have been allocated to our county for eruption recovery. MR. RICHARDS: So, if I recall this correctly, and maybe Sue, if you can help me out. We got$60 million from the Legislature. How much of that$60 million has been expended in the community, when that was directly set to take of the community? MR. LE: So of the $60 million that the County had access to, the $40 million of the loan was identified to address the—what we anticipated to be our local natural requirements to federal grants. So for example, with the FEMA funding it's a 75 percent federal share, 25 percent local share. You know, because we have not Page 13 GREDC-27 September 15,2020 begun work on those FEMA funded projects on road restoration, or other infrastructure. You know, those resources are available to us, through that forgivable loan, the loan with the State. The $20 million is currently not programed. But the Kilauea grant program that we kind of kicked off several months ago, will be the first tranche of funding that is assisting communities in their recovery. So that's the $3.7 million of grants that we're in process of rewarding. MR. RICHARDS: So what I'm hearing is that of the $60 million—and I get matching, the 25 percent match and needs to be encumbered so we had it, I understand that—but even the $20 million, we haven't really expended into the community as yet. As I remember when we were going through all this stuff two years ago, we had testifiers hanging on by their fingernails. And we were trying to get resources into the community, and it doesn't sound like we actually got it done. Is that a fair statement? MR. LE: Our ability to start this program, is the first opportunity to get these resources from the $20 million grant from the legislature in the community. MR. RICHARDS: Douglas, I heard you say that we have to be super carful about not expending funds unless we're absolutely sure it's not going to be called back or questioned later. The problem with government is we run into an analysis paralysis. Meaning we analyze, analyze, over analyze, plan, and plan and don't actually leap. And sometimes we have to take a chance. Because people's lives, and livelihoods are dependent upon this. I'm listening to frustration of the community; and again, it's not my community but it is our community as a whole because we're one island. And what I heard was when someone said, "I'm giving up, it doesn't matter anymore,"because we're not doing what we need to do, and we're the closest government that our communities have. We're frontline, we get the good, the bad, the ugly. And you know, I have looked into this communication, there's 428 applications that have been submitted. This has been almost two and half years since this episode happened. I don't blame the community for being frustrated. They were fear of going out of business some little businesses in Pahoa town, before the COVID episode hit us. And like I said, 1-the frustration—again, to borrow Sue's comments, I'm going to be measured here because we put forth, and we went to Legislature to do what we could for the community and I don't think we've been delivering it. And where are we with those 428 applications? MR. LE: So specific to the FEMA 428 grant funding, this is the public assistance program that we applied too for our public infrastructure. I think we've talked a bit about the roads in terms of projects that we—road projects and extents that we are restoring from the inundated roads. Those plans are with the federal folks, Page 14 GREDC-27 September 15,2020 and you know, we are working through the process to be able to start the work on those road projects. You know, once we have that green light, you know, what we call this notice to proceed, we can set expectations on timelines of when these road projects could be completed. But given the uncertainty of when we will receive that, that approval from FEMA to be able to start, it is not that helpful to set timelines. So we focus on kind of getting them what they need to be able to enable us to start. For the Department of Water Supply's projects, they did receive obligation, you know, based on the infrastructure that was damaged for a $40 million project need. This is again a 75 percent federal share, 25 percent local match from the County. And you know, given the geological conditions at this point they aren't able to proceed with restoring water supply and the infrastructure that was lost. I think also, you know, the community and we are also working through, so what does recovery look like? And what does rebuilding look like for the areas where the water supply was lost. Answering those questions will be really critical, in terms of how decisions get made on any water restoration. But the key technical issues, you know, the heat; the change in topography, the changes in water quality subsurface, are also incredibly important factors there. So you know, to answer kind of maybe more briefly your question Council Member Richards, you know, we're in this work of being able to move forward and secure the ability to start spending the funding. You know, in what I brought up earlier too, because you know, you raised it, on how we work to ensure that we're spending our dollars wisely and appropriately, it is a bit of an analysis, but really a lot of it is around controls and checks and balances, right. I mean, I think systems and processes in place that the County already relies in terms of our financial management, and grant compliance work, it is that just that some of these federal dollars come with some additional layers of requirements that we have to be complying with in order to spend the money effectively. You know, I think a really big issue that came across in the public comment period with the HUD grant was how this question of duplication of benefits applies for disasters. You know, we really need to get the answer right, for folks who would be benefitting from the program. And so, yeah, that's how we really try to carry that responsibility around taxpayer funding. MR. RICHARDS: And I would agree with you in regular construction time, but not during emergency time. There's got to be a way to move it quicker. And Chair, I'm going to yield very shortly here. I just—my frustration for the community I don't think I can articulate well enough. But why don't we, if we have a project we project is going to be $20 million, which means our contribution would be $5 million, so let's start, we got the $5 million. Get going. Page 15 GREDC-27 September 15,2020 We may or may not get the federal funding, but at least we're trying to get something done as supposed to waiting till we have everything. Because the problem I see, you get to a point again, borrowing Council Woman Lee Loy's comment, we're going down this path, if we don't make a change and be bold about making the change—we have to go forward to do something for the people. It doesn't matter if we wait for years, and finally get the approval of everything, if everything is gone. As I understand, and this is on top of my head, we lost about 700 structures. You said that there's about another 300 structures that were uninhabitable, which could mean access or could mean other things. Report from Roy, he said we lost about 4,000 jobs because of this lava episode, and lost a billion dollars out of our economy. Not making bold decisions about trying to change that, and then we lapse into this whole COVID-19. Where going down a very bad direction, and making hard shifts. It's going to be tough, I get it. But if this is how we're handling the lava episode, this COVID is going to run us over. Chair, I'm going to yield at that, because my frustration level is too high right now. Thank you. Douglas, thank you for what you are doing. CHR KIERKIEWICZ: Thank you, Mr. Richards. Anyone else have questions or comments? Ladies in Kona? MS. VILLEGAS: I just want to make a quick comment that I concur and agree with the frustrations, I mean it's just taking too long. We've got to spend this money; we've got to get some action in place. I understand the frustration and the kind of giving up, that sense of losing hope. I also on the other hand understand that it isn't possible for government to solve all problems for everybody, even during the time of crisis. Everybody's in kind of in a hard position in this, and we've gone from one crisis to the next. But I concur that we've got to get these monies out there, we've got to get these roads built. And yeah, we've got to do more, be more, share more. I know we all care. So thanks for your work Douglas. But once again, we can over analysis it to death. And maybe, I don't know, maybe it's time for, well we know it's time for action. So I just encourage you, and as you continue to navigate this path to figuring out how, where, when, and with what resources to take those steps and make that action happen. With that, I yield. CHR KIERKIEWICZ: Thank you, for that. Anyone else? Mr. Kaneali`i- Kleinfelder. MR. KANEALI`I-KLEINFELDER: Hey, Doug, since we're doing it, let's just do it. Doug you came into this, I mean how long ago you jumped into this? When did you take lead on recovery? MR. LE: I started in this role in November of last year. Page 16 GREDC-27 September 15,2020 MR. KANEALI`I-KLEINFELDER: Okay, so you've been in for almost a year now, yeah. I mean you're doing a good job. I'm glad that I'm hearing from the other Council Members, that they agree with Ashley and I, because Ashley and I have been on this from day one. And we sit on the taskforce, and we've been involved in the decision making. And we have said to Diane Ley, I've said it to you, we're saying it again today, is that we're looking for action. What does that look like? Does that mean the Mayor's got to give us his signature, I mean what is it? MR. LE: With the recovery work MR. KANEALI`I-KLEINFELDER: Be honest, I mean just say, what does it take, is it a signature, is it a phone call, is it projects? Because I know, I've brought forth projects, Kikala-Keokea. You know, the Mayor's talked about rebuilding 137, because of his own promise of his he wanted to fulfill. All these projects lay within our grasp right now, in different aspects. Whether it's 428 recovery, rebuilding what we lost, replacing something that's lost. I've also heard from the Administration as far as a legal opinion that we have no actual requirement to rebuild anything that was lost in Puna. Which is a very interesting thing to say. So I'm really wondering what does it take to get movement, what is it, what is that thing that needs to change? And I don't want the polite answer. MR. LE: I think how we can measure movement today is on, you know, with the resources that don't come with the layers and layers of process and approvals. To get those resources out, get them into the right hands on projects and implementation. You know, with this Kilauea Recovery Grant Program, right, that really Council championed, you know, Council Member Kierkiewicz really shepherded the whole process through with us. I think the ability to really start those projects and to pry the direct resources to kind of regain access, to re-establish farms, that's what the real work looks like. Did I want to be in a place where we were kind of awarding the grants last month, a month ago or two months ago? I think the urgency that we wanted to achieve, is the urgency we tried to apply. We are here where we are today and being able to start those projects I think will matter in a lot of ways. We have to get into contract to kind of start the process, but I think with decisions on how to award those grants, it is important to be able to move forward with. And you know, I think given the charge of the resources provided by the State Legislature in terms of immediate recovery, this is one of the ways that we can move forward with answering that call. MR. KANEALI`I-KLEINFELDER: But who just, I mean sometimes it's as simple as go ahead and do it. You know, we had some really good people on the County came before, and they could just say,just do it already. I mean I've heard stories of somebody drawing a picture in the sand, this, this, this, road down the Page 17 GREDC-27 September 15,2020 middle, do it. Oh but, no. Do it. Like so can we—is that a possibility right now for us to just move on something? I mean it's kind of what we've been asking. You get Council Members from Hilo, and Kohala saying the same thing, even Kona saying the same thing now. Ashley and I have been beating our heads on the wall for a long time. You're a year in. I think you're probably in the same boat as us. If you're not I'd be surprised. But I mean what is it, what is the hold? MR. LE: There isn't a hold. You know, where we are now when we take a scan at the projects that kind of on their way, or still need to work through to kind of kick off or get started like the infrastructure projects like roads, we are needing to tackle all that it takes to start a program, to bid out a project, to get securing of funding at every level. And you know, we've been working to move them forward, and I understand that the timeline does not live well with the realities of recovery in people's lives. But you know, this is the path that we've been working within. You know, even the example of say for, you know, that Council Member Richards brought up. You know, even if we have dollars secured for a local match, until the federal agency has approved the project to start. For us to start the work with that local match funding, we may only be left with that local match funding to complete the projects because it puts the federal dollars at risk. So I know that from you know, I'm a regular person too. I understand that maybe it doesn't fully make sense that we can't just start the project. But really being able to secure the approvals that we need and ensure that we have the resources available to deliver on the project. But you know, time isn't always our friend in this, and I acknowledge that. MR. KANEALI`I-KLEINFELDER: Some of the funds that are available to us, do they come with the federal holdbacks? Like the federal requirements, or can we not just spend some of these? I mean we did about$80 million that we can apply immediately. Some of the projects we chose, we chose to couple with federal dollars which is good, you know, we're using our money wisely, but at the same time it's slows down progress. What funds do we have at our disposal right now that can be used immediately? MR. LE: Some of the resources from the State Legislature, you know MR. KANEALI`I-KLEINFELDER: How about estimated dollar amount. MR. LE: Twenty million what we received. MR. KANEALI`I-KLEINFELDER: That's available right now? Like tomorrow. So if Harry said, "Hey, you know what? I going repave 137," it could be done tomorrow? MR. LE: I wouldn't say tomorrow. But I think it's Page 18 GREDC-27 September 15,2020 MR. KANEALI`I-KLEINFELDER: Let's say quickly. I'm going to put you on the spot. I mean where is the block, there's always a road block. Always get one plug somewhere in the pipe, and you find the plug and you pop it and everything flows. So that's what I'm looking for. And if it takes a real blatant honest answer from you, then go for it. MR. LE: So this is my honest answer. MR. KANEALI`I-KLEINFELDER: Okay. MR. LE: In the way that we kind of talked about how unique of a moment that $260 million is, giving just our annual capital budget, our annual operating budget as a county. It is also really important when dollars match the need to ensure that those dollars get the allocation they need, and resources are available that are more flexible. Like you know, the award that the State Legislature, and Governor provided us for recovery and kind of immediate response, that, you know, those resources made available for needs that we haven't kind of fully known or articulated yet. So when it comes to what we do know about roads and about kind of housing strategies, you know, their federal dollars are there for that. And you know, the real struggle is, it is important to continue to have access to those resources as part of recovery, or we will come up short in terms of being able to move forward, what it is important to move forward with. MR. KANEALI`I-KLEINFELDER: Okay. I understand that line of thinking, I think what you're hearing though is, funds are at our disposal. And we did repave one road. And I think we've done a few other things, and we put some grants out. But expenditure so far has been very minimal, and we are, I mean this eruption was happening when I ran for my first term. And here we are. And it just been a long time, and the community isI mean a lot of these folks, we've been in the same meetings. They've been here from day one in the audience. And they are, you know, still looking at their property buried and still not having a house. Struggling now with COVID, even worse. So it's just—it's time for something to change. And we've been saying it, this is nothing new. But I'm looking for that pop moment where everything just goes. MR. LE: If I may? MR. KANEALI`I-KLEINFELDER: Yeah. MR. LE: You know, with this planning process rapping up, and kind of sending direction on the work ahead. I do think it's an important moment to kind of really take today's conversation, and understand, you know, what resources are already available by the County on community side that these projects can move forward with, but what's still needed. And with the recovery dollars we have available Page 19 GREDC-27 September 15,2020 that don't come with same types of restrictions, that some of the federal dollars do, how can we apply, right, to move forward with on the work that we've identified is important for recovery in the plan. I know that kind of we're at point where we're pivoting, right from the planning process to implementation. But I think it's also important to acknowledge that, you know, some of the community-driven projects have started, or kind of have found their own legs in the time that we've been planning. To really set direction, on these really valuable resources. And that, you know,just to take this conversation and to reflect on, okay, so, now as we look to this pivot how do we think about the resources that are available to us in recovery? You know, if we leave aside those that are you need to specific needs such as roads and housing and keep on pushing to be able to roll out that work. MR. KANEALI`I-KLEINFELDER: Who signs off on all this? Who's that ultimate signature for you? MR. LE: So in terms of decision making and really what's within the County's kuleana, a lot of the work happens around consensus building with departments that are involved with implementation, and also the Mayor's Office. MR. KANEALI`I-KLEINFELDER: I'm in the recovery taskforce, but I know there's also in executive recovery taskforce. Who is the signing body? MR. LE: You know, members of the taskforce who kind of represent many of the departments within the County, right. We work on more of the County operations side, in figuring out policy making together. For many of the decisions, especially the more critical ones, really how we get to a decision is around vetting consensus building and kind of input, lifting up what we've heard from the many voices, and then, you know, getting into the final decision through conversation with affected involved department heads, and with the Mayor's Office as well. Because these are Administration decisions we're moving forward with. MR. KANEALI`I-KLEINFELDER: So you're saying ultimately Administration goes "toot," and then away we go. When we've all come to a consensus. MR. LE: The decisions areI know have different lengths, right, like in terms of the consensus process. I don't want to minimize the importance of the consensus work that we do together, but decisions around recovery are Administration decisions. And we are all part of the Administration. MR. KANEALI`I-KLEINFELDER: Okay. Well you are a wonderful speaker, and you do a wonderful job presenting. And I do not envy your position. But I think you've heard, you know where we stand already. Page 20 GREDC-27 September 15,2020 MR. LE: I understand. MR. KANEALI`I-KLEINFELDER: So looking forward to someone to actually say yes, and proceeding, and moving it along. I don't' think that's you. So hopefully they're watching. Thanks, Doug. CHR KIERKIEWICZ: Is there anyone else? Thank you, Mr. Kaneali`i- Kleinfelder. I'll have a go at it. This is how I'm feeling, Douglas. I feel like I'm underwater, and I don't know which way is up. There's so much anxiety and stress, and deep upset with where we are. I get a bit emotional about it, because I was so gung-ho at the start of 2020 when you came onboard for recovery as the Officer. Just really excited about the possibilities of how we were pressing that reset button. Standing up a recovery taskforce, and working truly government in partnership with community. And so to hear today my community feeling like they're not heard, they're throwing in the towel. I feel the same way too, but I can't give up. If I ditch this work, who is going to continue to champion and be a voice for the district. But I also can't give up because I still believe that this process, this recovery process sets the tone for how we can better partner with community. I truly believe that, I don't think a good enough job has been done to create that system and process. I don't even know if there's a way to begin anew. I spent a lot of time with my community. Prior to COVID, I was meeting with people in Puna at our office; at their homes; at their farms; once to twice a week. I still stay in touch, Zoom meetings, text messages, emails, phone calls. I'm accessible. I want my community to know I'm there for them, I hear them, and I'm going to fight for them. So I'm going to be a little bit scrappy today, because as a lot of my colleagues have articulated, we're just seeing a lot of planning to plan. We talk about moving forward, bouncing forward. But I can't help but feel like we're kind of stuck. A big issue that I just want to point out right now, is we still have yet to receive the Resilience and Recovery Plan and the Economic Development Plan. They we're promised to us last year, December 2019. And I haven't really heard an explanation, for why it's been delayed. Nine going on ten months. Do you want to elaborate? We as a recovery taskforce have gotten a preliminary draft. I don't want throw shade on it, because if it's significantly redone then I'm going to be in much better spirits. But do you want to just talk a little bit about why it's taking so long for the community to have access to these documents, which seem to be the linchpin, for us to moving forward on any type of action. MR. LE: You know, I recognize the value of what these planning documents mean for us to be able to move forward. And I really look back at when this process started. And you know, the commitment investment that we all made in this process, right. Really a unique investment to create a recovery plan that was Page 21 GREDC-27 September 15,2020 comprehensive, but also really a focus on the Economic Recovery Plan. When the projects first started in Spring of 2019, you know, they were scoped to be able to be completed at the end of the calendar year that is correct. As we went through the process of developing a plan, we needed more time to work through and to finalize really the data, the strategies, and the projects. And that is why the work with the teams that were supporting us in development of those plans continued through the end of June. Right now, you know, our team is working to finalize the plans, and to, you know, get it in front of the taskforce so that, you know, they have visibility on how these plans serve to set direction. They have an opportunity to input around what implementation looks like for these plans, and what role they see in it. And that is our immediate next step, to be able to then kind of share the plans with the community as a whole. CHR KIERKIEWICZ: What can they expect with these plans? Is it"Here's the vision, here are the projects, these are the actions steps; these are funding streams beyond federal and State dollars, these are the community partners, this is the timeframe?" Is it fair to say that we can expect that kind of detail given the significant investment the County has made in these documents, and how long it has taken to get these drafts out to community? MR. LE: You know, those really key components that you just walked through, are part of, you know, each what we call the project description for the work that's being proposed in the recovery plan, yes. Something I didn't cover here, you know, it also looks at, you know, the impacts from the eruption and usually memorializes that across the sectors. Because I think it's really important to look at both sides of the coin. But, yes, those components are key to us being able to implement this work. CHR KIERKIEWICZ: Okay, so remind me again when we can expect the plans. You mentioned them going to taskforce first. MR. LE: Mm-hmm. So that is in the coming days, to really to get in front of the taskforce. CHR KIERKIEWICZ: Both plans? MR. LE: Mm-hmm. For us to kind of have time for folks to really dive in, review, really formulate their thoughts in terms of how we have the next conversation, and then to organize a meeting of the taskforce at the end of the month. CHR KIERKIEWICZ: And then do these plans include timelines? Page 22 GREDC-27 September 15,2020 MR. LE: They include timeframes for the projects. You know, what projects are ongoing kind of work, verses short term, verses long term. I think that when, you know, as we move forward and some of the larger kind of projects, especially those that rely on federal funding as those timelines are set. I think it's important through different channels beyond just the recovery plan, to set, to be able to communicate those timelines. And what are the major milestones that we all should be working towards, along those timelines. CHR KIERKIEWICZ: Okay. Give me something to snack on. What's immediate, what's something immediate that we can get off the ground that's articulated in these plans? MR. LE: Mm-hmm. So something immediate is, you know, some of the direct assistance to the to the agricultural projects that are identified in the plan that some are already kind of working, kind of with community partners. And also a number of initiatives are being funded with this Kilauea Recovery Grant Program. That is, you know, getting resources in folk's hands, starting project implementation. CHR KIERKIEWICZ: How come it's taken so long? MR. LE: For what? CHR KIERKIEWICZ: All of it. I mean you're stating the obvious, stuff that is in existing plans that we have as a County that may not be specific to Puna. But they're obvious and they're stated elsewhere, and I just don't understand why it's taking so long to get things off the ground. I'm really curious about Puna Strong, and why it's now called community-based disaster management. That was promised to us over a year ago. And if it wasn't my continuous badgering of Corporation Counsel to figure out what the heck is going on here and threatening to legislate what needs to happenI mean all of that is happening in the background, and now we get an update from you about an RFP (Request for Proposals) coming out. And I'm just kind of caught unaware of its scope. Community-based disaster management, can you just explain that a bit more to me, please. And why it's taken so long, I think it's irresponsible for Corporation Counsel to be holding this incredible tool hostage. And not coming up with solutions for how we can take action to support community. Where is Joe, by the way? That was maybe more rhetorical, Douglas. MR. LE: Our work with Corporation Counsel was really around crafting what would be involved with their request for proposals with this project. You know, I think prior to this concept of Puna Strong, community-based disaster management coming forward, you know, there weren't many examples in our experience of the County directly funding with capacity building tied with it, you know, Page 23 GREDC-27 September 15,2020 projects. Really creating a grant-making strategy. We have a long history of the grant-in-aid program and different ways that we resource community organizations, but really, this was a different take. And you know, folks worked to really rise to that challenge, around what recovery means. A lot of what we work with, and what it takes to kind of in terms of supporting this initiativea lot of our work with Corporation Counsel, was really ensuring that, you know, to launch a program on a scale that we need to launch it that, you know, we could really support an organization as a partner to kind of be that grant-making entity with the County, and to structure the program, you know, based on what the recovery process, right? You know, where we are in recovery, how that brings a focus to where these grant resources and capacity building could really go to. You know, the distinction between Puna Strong and kind of how we are moving forward with community-based disaster management, it is really just a naming function. The initial kind of intent, the goals that were laid out when Puna Strong was articulated are still one of the same with this RFP that we put forward with. You know, we need to identify like a this is a profit, not for profit partners, who can really work with us so that, you know, it's not just, "Submit an application," you know, "Here's a grant for $30,000,"but really, you know, how do we add value to the project, how do we make connections across grantees, how do we build capacity? And just from my own experience kind of working communities, working for young organizations, being a part of older ones too, you know, I am a firm believer of the value of capacity building, in terms of projects and a growth of organizations. Whether you have that 501(c)(3) label or not, you're doing work in the community. And so really the original vision of Puna Strong and what we're moving forward kind of with this RFP, is capturing that. CHR KIERKIEWICZ: I want to spend a little bit time on taskforce. I don't think the roles of taskforce members were ever clarified. I'm seeing in the presentation Doug, that you provided today that the taskforce is merely advisory, and that these are the members of the community that you are checking in with along the way, when we are making these larger decisions. And I bring this up because I think we were all caught off guard by the action plan. It was put out for public comment, and maybe I missed a meeting, I don't know. But when I spoke with other taskforce members they felt, "Huh. They said we reviewed it." But they didn't remember having any long thorough discussions about the document. And they were caught off guard, because members of the community know who taskforce members are. And they couldn't defend it, they couldn't begin to describe it because they didn't understand it. And so what is the role of our taskforce? I mean the buck stops with who? You know the question I have on the communication that I've highlight is, who and/or what is driving final decisions for Puna recovery? For me community has Page 24 GREDC-27 September 15,2020 got to be at the core of that. I don't know how much time you and your team has spent in Puna. But I trekked over lava fields to Pohoiki with a baby strapped on my back. I went over Lighthouse Road several times with constituents. I spent time with residents in kipukas really understanding what they want to back to. And there so much life and possibility there. And I just understand that when community elevates what they and what they need we treat them like children. Like, "No, no, you don't need this, this is what you want." And I just feel that they're not being leveraged properly. So who and what is driving the decisions, the final decisions? And I mean what is your vision for the taskforce going forward? MR. LE: So our vision for the taskforce going forward, is really around implementing the roles that we set out to really form. So you know, when the taskforce was first conceptualized and created. I think one thing that was unique about it was that there are members of our broader community kind of directly impacted households, and individuals, but also folks from County government at the same table, kind of working in the same space. You know, that is unique for us, in that they are, you know, boards and commissions, very different structure, right, that we're very used to working with. And you know, this question around roles, has been an ongoing question, right. I think when we first set out, and we kicked off the taskforce, our goal was really around how this space kind of shared like knowledge, and authenticity can help to inform decision making, really kind of lift up the advisory role, but there are decisions that rest within the, you know, specific authorities and responsibilities of the County. But there also kind of decision and work to be done that, you know, the County is not kind of in the driver's seat on, right. And really community has stepped up, and has vision to move forward with. And so really the taskforce, I always felt that the taskforce needed to accommodate and really embrace kind of this range of work to be done. Early on, right, we wanted to think through how this structure of recovery support functions could help to really organize our work and set up a structure for a process of limitation, right. And in the months of—in the early months of our work with the taskforce since we got together we did prioritize, you know, hearing out and working through some of the really thorny issues that we as recovery team are facing. You know, what are the inputs and data that we need to look at, in terms of decisions kind of either way around the restoration of certain road extents. You know, when faced with how to prioritize funding on CDBGR (Community Development Block Grant-Recovery), and it being around housing. To really take the time through kind of several preparatory conversations and a larger meeting to help folks understand, you know, these are the this is a regulatory environment, really what our buy-out program looks like and what it entails. Page 25 GREDC-27 September 15,2020 These are the building blocks of a program. You know, how we prioritize, what we prioritize, to ensure that, you know, the program as we were lifting it up actually was relevant based on what we were hearing from people on our taskforce. Both on the community side, and on the County side. You know, this work that falls within the county's kuleana, is work that we at staff level and department head levels, folks up and down the Administration are going to be responsible for implementing moving forward. And so that's why I really felt that if they shared space, was super critical. And you know, the decisions related to projects—and I think especially there was a lot of lessons learned around the feedback conversation we had with members of the taskforcewhere, you know, I think as we're moving forward to be able to meet requirements, you know, there was a common understanding of what the buy-out program could mean. Including that workshop conversation that we had together, you know, a follow-up summary of—it was very soon after COVID. So we did several pods of conversations with different taskforce members about, you know, what buy-out program means, what we should be prioritizing, what we should be lifting up. And I think the disconnect essentially was, you know, folks have had the chance to review recovery plan; folks had a chance to talk about buy outs, You know, but did we as a staff really stewarding this process, make connections for folks of what these different pieces of the puzzle are, right. So you know, the action plan, which is around a specific allocation of funding and articulating a program, it does not replace the Recovery and Resilience Plan that folks had provided feedback on, kind of in the weeks that proceeded it. So you know, I think that was real lesson going around ensuring that all members of the taskforce really have the knowledge, the data, the background, to be able to fully serve in this role. And you know, I think we've had a lot of follow-up conversations with folks to be able to learn from that, and to shift how we operate as a group. CHR KIERKIEWICZ: So speaking of the action plan, you know, I think for the longest time I was under the impression, and I think my colleagues were as well, that because it was a HUD program CDBG-DR, action plans are something that the Housing Agencies are non-legislative function if you may of this body, you know, reviews and adopts. How come we didn't review it before it went to HUD this time? MR. LE: So where we are is really the initial action plan. So to take a step back on just the process on getting to grant agreement. The initial action plan is basically the version of the action plan that, you know, we develop within our local community before it is submitted to HUD. You know, we submitted that on August 31st, but it is still called an initial action plan. It is still very much in draft form, right. HUD will come back to us, and while we meet with them biweekly, Page 26 GREDC-27 September 15,2020 we talk to them weekly, all of the entities within HUD, and also a lot of cross cutting federal partners outside of HUD, are now taking this period to review our action plan. Identify areas of strength, area of weaknesses where they want us to change it, and we wanted to be ensured that, you know, when we go before the County Housing Agency, you know, who has the authority to review and approve any agreements between how does the Federal agency, and the County of Hawaii that version that is that would be reviewed by the County Housing Agency is the final version that both the County and HUD, would endorse to be able to move forward for the County Housing Agency review. CHR KIERKIEWICZ: What if the agency rejects it, what happens then? MR. LE: If the agency has concerns, it is our work to address those concerns to be able to move forward with that plan. CHR KIERKIEWICZ: So resolving our concerns, the body formally adopting, then your transmitting that final version to the feds, would open up the stream of funding. We wouldn't be able to receive unless it's formally adopted. MR. LE: Correct. Our County Code, this is not a HUD requirement, but our County Code requires an agreement between the HUD as a federal agency specifically, and the County to be approved by the Housing Agency. And so really what we're expecting next is a version of the action plan that has their input. And really I mean to be very frank, I'm expecting input back to reflect into the action plans, right, in anticipation of kind of coming before the Housing Agency for approval. And a grant agreement, right, more specifically, is also part of that process. And so really ensuring that, you know, what the Housing Agency has an opportunity to review and kind of has the final decision to approve is that version we can all move forward with. CHR KIERKIEWICZ: Thank you. Two final questions. One's about roads, you know, I reviewed the interim recovery strategy and one of the priorities we set out was to folks back to existing homes and farms in the area. And that gets tricky, because there are number of kipuka left from the eruption. And so what this kind of points to is, Lighthouse Road, but also other roads that initially the recovery team made the decision to not restore and that's Hinalo, Lauone, and Honuaula. And so I'm just wondering, a number of constituents have reached out to me, you and I have host conversations with them. Is there any update you'd like to provide on these roads, and if not those roads alternative ways to get people home. I'm looking for any type of solution that gets people back especially if they have homes and thriving farms that can be part of the economic engine for the region. MR. LE: Yeah. You know so specific to a road like Hinalo Street, you know, there's no question that the residential areas of Lanipuna Gardens were just Page 27 GREDC-27 September 15,2020 devastated as part of the eruption. You know, Hinalo runs directly along the centerline of the lower east rift zone and is in Lava Zone 1. You know, there are kipuka kind of farms that if they could gain access could reestablish themselves. They're valuable in terms of not only the livelihoods of those families. But also kind of, you know, I think our shared goals are for security and agriculture as a priority as a County. And really the balance is, you know, can alternative points of access be provided. You know, there are other areas that are isolated kind of kipuka, where they are working through, you know, other resources, whether they're grants, etcetera, to re-do legal easements in order to, you know, do the appropriate clearing of the road and get folks back in. I think for an area like, you know, both upper and lower Hinalo there are opportunities once Pohoiki is restored. And potentially even kind of some of the other private roads that are coming back in, to regain access to kipuka areas that alternative access is possible. Is it exactly the legal right of way off of the County roads that existed prior to the eruption? It is not. You know, do we want to work with folks that identify alternative ways to get back to their lands? Of course. And so we want to kind of continue that. CHR KIERKIEWICZ: So you will continue to be leading conversations with those various kipuka members to identify ways home? MR. LE: Yes. CHR KIERKIEWICZ: Okay. Please keep me tuned in. MR. LE: Of course. CHR KIERKIEWICZ: Because it is my district, and I want to make sure that I'm able to help push where needed. Sorry, I think just a couple other questions. Recovery support function co-chairs, we are at a point in time where we can expect a new Administration in the next few months. And what has always kind of concerns me about the structure of recovery is it's contingent upon who is in the Administration. And many of the recovery team members and recovery support function co-chairs, are department heads. And no offense to them, they're awesome people. But many or all may not be coming back in those capacities. And so I worry about the length of time required to onboard new people into this work, especially because it's a space we have been working in and fully invested in for years. And so in standing up the recovery support function committees and the co-chairs, my understanding is a co-chair of someone in the community and someone from County. Can that county person be within the County but not a department head? And I say that because, I just want to protect recovery from becoming a political football. We need to have consistency, with the decision Page 28 GREDC-27 September 15,2020 making and the actions. And I wonder if it's more appropriate for a County co-chairperson to be someone that's in a civil service position. They have the institutional knowledge often times to kind of weigh in, and help to see the work through. MR. LE: You know, I think there are several factors that are really pointing to a suggestion like yours, about how we structure the recovery support function. CHR KIERKIEWICZ: I'm sorry hold on a second. MR. LE: Yes. CHR KIERKIEWICZ: Have things changed? It was always mine and everyone's understanding that community and County would be involved. MR. LE: Yes. No question about that. CHR KIERKIEWICZ: Okay. MR. LE: No question about that. I think the point that you raised about, you know, really what are the considerations around someone in a department head or deputy kind of role serving as co-chair of a recovery support function versus, someone in a more civil service type role. What I've seen as valuable in terms of the work we've done to date in terms of the folks in those seats, because they are amazing people is that they've had this consistency of knowledge and conversations from, you know, workshopping something with the taskforce, you know, working through decisions as kind of peer department heads, and kind of engaging different levels of decision makers, right. In all this, there's that consistency. I do think there's value as you're sharing, right, around having someone who might be in a more leadership role, but civil service role within a department who has the same kind of, you know, up and down, nuts and bolts understanding of how work happens in their department and also provide some of that consistency. And so you know, that is a suggestion that we're looking at, because we are facing a transition at this time, yeah, right. You know, there are members who are currently on the taskforce from the County side who will—some will return to their civil service role, some may not be part of the next Administration. That is a reality. And so this is an important moment to be asking these kind of questions. But I also feel that, yes, kind ofagain, one of the innovations was around having, you know, all perspectives at the table for the taskforce, but then all perspectives really owning the work of the recovery taskforce, you know. The one benefit we have with this work of the taskforce is that it's not as prescriptive as other boards and commissions, that we really have to puzzle peace to ensure that we're meeting requirements. We can do what's best for our shared needs in this way. Page 29 GREDC-27 September 15,2020 CHR KIERKIEWICZ: And so who is leading the work, to kind of activate the RSF (Recovery Support Function) committees? Who on your team? MR. LE: Yeah, so I'vemy work, really has the pivot or the lead on the taskforce work, right, kind of organizing meetings working through it. At this point I'm kind of the catalyst around how do we re-think the recovery support functions. I know that we need to think through kind of the empowering the co-chairs to actually run the work, right, once they're identified. And to kind of set, you know, work plans, interface between work that's happening at the recovery support function level as well as the taskforce level. But kind of at this moment where we're really working through some of the questions you're raising about how we kick it off, how do we kind of start it. I'm kind of at the center of decision making I'm sorry to convene. CHR KIERKIEWICZ: Can I be part of those discussions? can I help to catalyst some of that? I'm being dead serious; I'm not just saying it to grandstand, but I mean it. And here's why, when COVID hit, I am one person. I have a staff of two people, but we were smart and we worked in partnership with community. We distributed over three months 8,700 keiki packs. For four months we have been dropping 500 bags of food to Puna residents, and I do that with community. I know how to mobilize people where they can feel like they're contributing, that there's a sense of pride and ownership. And so if you need help, I am here for you. I care about this process deeply, I respect you immensely and I just want this to be successful. MR. LE: Yes. And I appreciate that you've consistently offered your help in ways big and small. And I want to continue to really work with you into standing up this really, really next important phase of the work. CHR KIERKIEWICZ: Okay, thank you. I'm just going to end with this. We've got$260 million available, and probably much more financial investment for Puna. That's like half of our existing County budget. This is an incredible amount of money for a region that has not gotten its fair share in many, many years. This is a chance to change the trajectory of the lives of so many and to create an economic engine that rivals Hilo and Kona. I believe that to my core. And while its $260 million, what we also have in Puna is a lot of human and social capitol. You have a very resilient, and resourceful people that if just given a bit of support, I surely believe they can rise to the occasion and do amazing things. And so I know today was a bit uncomfortable for all of us. I like to live in the space of uncomfortable, because so many of our residents are, Douglas. They lost everything in the eruption, they're struggling now amidst COVID. I try to operate in this place of, "I've lost my paycheck and my home. I have nothing. What can Page 30 GREDC-27 September 15,2020 I do?" That's the kind of discomfort we need to be in, because that is the shoes our community are walking in right now. We are lucky, we are lucky to be here to have consistency. Not everybody is so fortunate. So we really have to make sure that we are really putting ourselves in their shoes. Walking in their shoes and engaging them, so that our decisions and our actions are truly supportive of what they need. Anyway, I just want to thank my Council colleagues for the latitude for today's discussion. I know it was long. But we haven't had an update in some time, and so it was good to catch up. I know you folks are busy, but clearly people just want to see more action. So please keep us posted. Everyone here is ready to assist, however. We just need to be called upon. Thank you, Douglas. MR. RICHARDS: Chair? CHR KIERKIEWICZ: Mr. Richards. MR. RICHARDS: Just a parting comment. Douglas, make a decision. It sounds like you're at the core. Make a decision, I'll back you. But make a decision for these people. And I offer that. I'll advocate for our County at the national level. But make a decision. I will back you. Chair, I yield. CHR KIERKIEWICZ: Thank you, Mr. Richards. Ms. Lee Loy. MS. LEE LOY: Yeah, I got to say the same thing, Douglas. Hundred percent. It's tough, we got to have courage. We got to make the decision, we stand ready to help. We have bandwidth. Mr. Richards sits on a committee, NACo (National Association of Counties) Committee. I mean if recovery is something for every single municipal across the United States, he can leverage his position, which would create bigger bandwidth. So some of these things can be streamlined at the federal level. I mean, like Ms. Kierkiewicz said, we've got to get uncomfortable so that we can make progress. Douglas, between you-100 percent. I'll back you up. You have permission. Make a decision and we'll go from there. Weare resourceful. Chair, thank you for this. You know, I really want to give the community hope. And what I heard today, was kind of a loss in that. And this would have been now the third time that they're feeling that sense of loss. So thank you, Chair for this conversation. Douglas, thank you for sitting in that hot seat, and answering the questions. I yield. CHR KIERKIEWICZ: Thank you. At this time we have a motion on the floor to close file on Communication 430.35. All in favor please say "aye." Page 31 GREDC-27 September 15,2020 Vote on Comm. 430.35: The motion to close file on Comm. 430.35 was carried by Filed the following voice vote: Ayes: Committee Members David, Kaneali`i- Kleinfelder, Lee Loy, Richards, Villegas, and Chair Kierkiewicz—6. Noes: None. Absent: Committee Members Chung, Eoff, and Poindexter—3. Excused: None. CHR KIERKIEWICZ: Thank you, Douglas. Mr. Clerk, can we take a five minute recess, so that we can get set up for our next presenter. Thank you. We're in recess. Recess: At 4:56 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 5:04 p.m. CHR KIERKIEWICZ: Okay, we're back on the record, out of recess at 5:04 p.m. Mr. Clerk, the next communication please. Comm. 659.10: REQUESTS AN UPDATE FROM THE MAYOR'S OFFICE REGARDING THE ADMINISTRATION'S UPCOMING PLANS AND PENDING PROJECTS From Council Member Matt Kaneali`i-Kleinfelder, dated August 31, 2020. Motion to Close File: Mr. Kaneali`i-Kleinfelder moved to close file on Comm. 659.10. Seconded by Ms. Lee Loy. CHR KIERKIEWICZ: Mr. Kaneali`i-Kleinfelder, go ahead. MR. KANEALI`I-KLEINFELDER: This is an ongoing communication with the Administration, designed to enforce communication amongst government. And I appreciate every one's time, and it is 5:05 and it's getting on the afternoon. Roy, come on up here. Thank you for being here today. And I will let you go ahead, and we can jump in as we have questions. It's been kind of our format, so let's just go for it, Roy. What you got? (Note: At this time, Managing Director Roy Takemoto came forward to address the members of the Committee.) MR. TAKEMOTO: Okay. Roy Takemoto, Managing Director. For this month what I was intending to do is to focus on one key category of initiatives, and then next month if you want me to come back to focus on another. So this month I wanted to address the status of the affordable housing and homeless projects, and Page 32 GREDC-27 September 15,2020 drill down into the projects in that category, but also highlight the champion or the keeper of the flame, who could carry some of these initiatives into the transition to the next Administration. And for this category, the homeless and affordable housing, that person would have been Sharon Hirota. But she had a five o'clock webinar that she has to do on the rent and utilities assistance program, and if she's done she'll come and join me. So let me just lay out the lay of the land in this category, and interrupt me anytime. And we can proceed, and hopefully Sharon can join us. So for the homeless, at the beginning I think it was 2018, we presented a County homeless strategic plan. In that plan we identified some components of what a plan should address. So these components included what is the partnership network, how do outreach and intake, what types of housing in terms of emergency transitional shelters can we provide, and then how can we prevent antivert potential homelessness. So let me take the first one, partnership network. For that one, there are three key alliances that we need to maintain, communication and participation with. One is the Hawaii Interagency Council on Homelessness (HIGH), the other is Community Alliance Partners (CAP), and the third is Bridging the Gap. The first one, Hawaii Interagency Council on Homelessness that's a statewide council. Community Alliance Partners is the local on-island group. Bridging the Gap is the neighbor islands. And so these statewide ones and the Bridging the Gap, that one is key for us to get for us to get funding. The Community Alliance Partners sets the priorities that we want to seek funding, and then does the implementation. For each of these in terms of transition, there's no official County assignment. During our Administration and probably the previous, housing has been the informal one, and particularly Sharon had been the person. So when Sharon moved out of Housing, our representation moved with her. So going into the next Administration, if it's not Sharon then I hope you pay attention that whoever needs to be assigned to this, to all three, to make things happen. Moving to outreach and intake. MR. KANEALI`I-KLEINFELDER: Roy, which one are you taking on? How's that. Keep going, keep going. MR. TAKEMOTO: Okay, moving to outreach and intake. This is the one where the intake—amazingly there is a robust database system called the, Coordinated Entry System that coordinates the occupancy of the shelters, you know, what beds are open, who's there, what their needs are. And then when the case managers go out into the field for tools that they're able to touch base with, and, you know, they consent to have their information entered into the database, this is the system that helps to not only manage the shelters, but also the services. And again, it has been Sharon. So if not her, then who? It would probably have to be taken over Page 33 GREDC-27 September 15,2020 by someone in the Community Alliance Partners, CAP, to fill that void if not the County. The other way that the outreach is done, is through the annual point in time count. The participation, the key role that the County plays there, is that every year it's done manually. In this past year and hopefully in this current year, we're trying to push to have it done with the GIS (Geographical Information System) Field Collection System, which is a County system. So if it's not the County, then it would probably revert to a manual system. The outreach street medicine program that is not dependent on the County. That HOPE and West Hawaii Community Health Center manages, so the transition doesn't depend on the County. The big achievement in this outreach and intake has been the standup of assessment centers. This is the 24/7 place where the police or case managers can take a homeless person and check them in, and the assessment center will find appropriate housing. And if couldn't find housing, then set them up in an emergency shelter. We have Keolahou on the east side stood up, Ulu Wini on the west side for families stood up, and in process is Kukui`Ola on the west side. So to transition the assessment centers, it's a multi-year funding, so just need to pay attention to the contract to make sure that the funding can continue. So moving on to the housing question of homelessness. There are temporary emergency shelters that we stood up in response to COVID. In Kona there's 32 emergency shelter beds, in Hilo at the NAS Pool there are 18. MR. KANEALI`I-KLEINFELDER: Quick question. The temporary shelters that we have stood up, how long is the life span of those? What happens after you know, after a year, six months, what's the deal? MR. TAKEMOTO: Yeah, on those they are COVID funded, yeah. So we need to get an exit plan by December. MR. KANEALI`I-KLEINFELDER: Are those still like the HPM (Hawai`i Planing Mill) ? MR. TAKEMOTO: Yeah, Mm-hmm. MR. KANEALI`I-KLEINFELDER: What is that called? Micro shelters, but basically there MR. TAKEMOTO: There moveable. MR. KANEALI`I-KLEINFELDER: There portable. But there like a, it's like a shed, yeah? Page 34 GREDC-27 September 15,2020 MR. TAKEMOTO: Yeah. MR. KANEALI`I-KLEINFELDER: Like a shed design? MR. TAKEMOTO: Yeah. MR. KANEALI`I-KLEINFELDER: So do we just give away the sheds at the end of eight months, or what? What's the deal? MR. TAKEMOTO: No. The plan they were designed to be able to pack up and store if needed. Or to easily take them down, and put them up in another location. MR. KANEALI`I-KLEINFELDER: Okay, so reusable? MR. TAKEMOTO: Yeah. MR. KANEALI`I-KLEINFELDER: Okay. MR. TAKEMOTO: So the exit plan, for the NAS Hilo side. The plan was to move them to Keolahou, where it would either continue as shelters or cluster them into future—kind of like a rental unit. What they found, I don't know if I mentioned this before, but what they found is that the local homeless, they don't like congregate housing settings. So they wouldn't go to Keolahou, but they went to NAS, the local guys. So if we move them to Keolahou, there would be that segment of the population that we could move off the beaches and get them to stay at those shelters. For the Kona one, the exit plan is to move them to Kukui`Ola. So that transitions me into the more permanent emergency transitional permanent supportive housing projects. On the east side, there will be Keolahou; on the west side, Kukui`Ola. So Keolahou is like three separate projects. No, maybe four: assessment center/emergency shelter, number one; number two, I'm not sure what Sharon calls it, but I refer to it as like a dormitory. Single resident—SROs, single Resident Occupancy. So they have beds but they share bathrooms, like a dormitory. So that's on the second floor, where the pharmacy used to be. The third is the permanent supportive housing, where Council approved a lease to BISAC (Big Island Substance Abuse Council). And BISAC will do the permanent support of beds and that wing of Keolahou. The fourth is something that an environmental assessment is ongoing to do within the grounds of the old Hilo Hospital. Affordable rental units, or this single unit emergency shelter. So that's the more long-term plan for Keolahou. Page 35 GREDC-27 September 15,2020 For Kukui`Ola, the first phase is 16 beds. With additional funding, could go up to 48 permanent supportive housing. So the transition on that, by the end of November, hopefully Kukui`Ola would be the construction started, so hopefully major progress on the access road and the site work for the first 16 emergency shelter units. Any questions on the housing portion? Otherwise I'll move to prevention and diversion. Okay, so preventing and diverting potential homeless. There are several exciting programs that Sharon has been working on. One is the Rent and Utilities Assistance, and that is being piloted through CARES (Coronavirus Aid, Relief, and Economic Security Act) funding. So that's the one that she's doing the webinar, this evening on that. So that's out on the streets now, being administered through credit unions, and I think Hawaii Community Assets. MR. KANEALI`I-KLEINFELDER: Is this the (RMAP) Program (Rent and Mortgage Assistance Program)? MR. TAKEMOTO: Yes. MR. KANEALI`I-KLEINFELDER: I have a few questions about that. You want me to wait till the end or do you want me to ask them now? MR. TAKEMOTO: Maybe wait to see if Sharon comes. MR. KANEALI`I-KLEINFELDER: Okay. MR. TAKEMOTO: Okay, the other exciting program in this area of assistance is the Financial Navigation and Empowerment Center. That one has been powered through by grants that Sharon has been applying through the County's membership in the Cities for Financial Empowerment Coalition. Our County is the only county of membership that includes mostly largely metropolitan cities: Boston, Denver, San Francisco, New York, and San Antonio. It was through this coalition, which was originally started the Bloomberg Foundation, that we were able to apply for grants that set up the Financial Navigation program that is currently in place and in partnership with Hawaii First Federal Credit Union. So this is a pilot for the eventual Financial Empowerment Center. So the whole concept here is to set up a one-stop navigation for all types of assistance for housing, for employment, whatever a family is struggling with, to have one place to seek assistance and find what's available, and rather than just say, "Here's the application," To take them through the process with case managers. So it's a matching program and a case management program. MR. KANEALI`I-KLEINFELDER: I noticed on our County website that actually all of the programs have been removed, and there's a Financial Page 36 GREDC-27 September 15,2020 Empowerment tool on the top now. Is that what you're talking about? Is that kind of the transitions been made? MR. TAKEMOTO: Yeah. So, oh, good timing. Okay. MR. KANEALI`I-KLEINFELDER: He was waiting for you, Sharon. MR. TAKEMOTO: I stalled as much as I could. MR. KANEALI`I-KLEINFELDER: Kona, we have Sharon Hirota here,joining Roy. CHR. DAVID: Thank you. MR. TAKEMOTO: So this is the keeper of the flame of these programs that I conveyed. Okay, so Councilman Matt had a question on the Financial Empowerment Center. MR. KANEALI`I-KLEINFELDER: Yeah, looks like—so Roy talked about homelessness affordable housing. He said you've been kind of carrying the torch from here on out. And this communication we've been doing just kind of lets the administration kind of brief the Council on what's going on. Just trying to get better communication. So thank you for being here. So we've talked a little bit of outreach, affordable housing, different projects, the things that we've done so far. And we were just talking about the financial empowerment navigating or tool on the website now that I noticed in place of all the programs you can apply for. Because I was looking at it, what are the programs available? But there was only the Financial Empowerment tool. So can you touch on that briefly, so people can understand that if they're watching, or we can get it out to the public? (Note: At this time Executive Assistant to the Mayor and Homeless Coordinator Sharon Hirota came forward to address the members of the Committee.) MS. HIROTA: Good evening. Sharon Hirota, Mayor's Office. So in regards to the Financial and Navigation Program, it's just one of our programs in providing assistance to the families who have a need. Whether they're unsheltered, or sheltered. So the Financial Navigation Program is something that we applied for private funding to help. It's called the Financial Navigator. But basically what it is, it's a service that allows people to call in to a call-center and express what their needs are, whether it be childcare, access to unemployment. We're finding, as you know, many people in situations today as it relates to COVID, that they've Page 37 GREDC-27 September 15,2020 never been in before. They've always been employed. They've always been able to navigate the system—child care. And we're finding families that are just lost. And so we were able to secure funding from the Cities for Financial Empowerment Fund, to stand up this program. So they can call in to our partner, which is Hawaii First Federal Credit Union. They will connect to a live person. So they can either do it online. And the caller will call them back, or they can call the line. They'll connect to a quote, unquote, a"navigator,"who has his database of all of our local resources. Name the gamut. And they update it almost daily as new programs become available. And as through conversation and through counseling, they can get referred to various services and/or resources on the island. If they're looking for food, if they're looking for childcare options, if they're looking for financial assistance, if they're just struggling to figure out where and what they need to do next. So the counselor will walk them through. At the end of the call, they will get like a follow-up sheet. Here's some numbers, contacts, emails. And then within 10 days, the navigator will call the family back to make sure everything is okay. And if not, how else can I help you, and what else can become available. So the Navigator Program was specifically for COVID, in response to meeting the needs of the families who were struggling and trying to figure out what resources were out there, instead of clicking on 10 different websites MR. KANEALI`I-KLEINFELDER: Yeah. MS. HIROTA: And you know, calling 10 different places to get their answers. But to talk to a navigator, talk to a person that would help them do that. MR. KANEALI`I-KLEINFELDER: I like doing that, too. I hate the online thing is good and it's easy, but there's nothing better than talking to a person who can say, "Hey, you know what, you should try this." MS. HIROTA: Yes, yeah. MR. KANEALI`I-KLEINFELDER: And I think all of us have probably been feeling those phone calls. You know, what do we do on this case? You know, can you help us? It's been ongoing, especially since COVID. MS. HIROTA: And I would highly recommend for you or your staff to use the Financial Navigation Program. It's free. And we will ensure that because of the way the system was built and tracks all the resources, they will be able to get access to multitude. Depending of where they live. They built a very good system for this program. Page 38 GREDC-27 September 15,2020 MR. KANEALI`I-KLEINFELDER: Okay. Who's running that? The County run or? MS. HIROTA: No, it's in partnership with Hawaii First Federal Credit Union MR. KANEALI`I-KLEINFELDER: Okay. MS. HIROTA: So I have two locations, in Hilo and Waimea. And they have a nonprofit resource center, so we're using the resource center as the Navigator Program. MR. KANEALI`I-KLEINFELDER: So CARES funded? MS. HIROTA: No,private funded. MR. KANEALI`I-KLEINFELDER: Oh, okay. MS. HIROTA: No CARES money. MR. KANEALI`I-KLEINFELDER: Okay. Good job. MS. HIROTA: Yeah. MR. KANEALI`I-KLEINFELDER: So I just had a couple concerns about the RMAP program that have been popping up. And this concerns the County on the backend. Is right now to get the RMAP program and to utilize it as an individual, you cannot be using the forbearance part of your loan because then you would have entered into an agreement with your loan companies. You're no longer in a problematic situation, and you also have to be delinquent to apply. MS. HIROTA: Okay, so I can update you. MR. KANEALI`I-KLEINFELDER: Okay. Okay, because this is I mean, yeah. MS. HIROTA: Yeah. So we heard the concerns from our contractor Hawaii Community Lending, as well as their five nonprofits doing the work here on the island. So last week Friday, we amended the contract. MR. KANEALI`I-KLEINFELDER: Okay. MS. HIROTA: Retroing back to the original date of the contract, which is August 14'', allowing for payment of forbearances. MR. KANEALI`I-KLEINFELDER: Okay. Page 39 GREDC-27 September 15,2020 MS. HIROTA: Allowing for payment for families who entered into some kind of payment agreement, even if it's a rent payment agreement. So you pay me $200 to get caught up, in addition to. So we're allowing that for families even if they're not in arrears, technically they are. If they didn't sign the forbearance, or they didn't sign the payment agreement, they would have been in arrears. And so now we're allowing it. MR. KANEALI`I-KLEINFELDER: Okay. MS. HIROTA: We've increased the area median income for 100 percent to 140, so it broadens the eligibility. We increased the monthly allowance from $1,000 to $2,000. MR. KANEALI`I-KLEINFELDER: Wow. MS. HIROTA: And then retroing back to March. And if a household is determined eligible, let's say today, September 15'', and at the end of September they certify that they are still in the same income situation, nothing changed, "I never go back work, I still collecting unemployment,"we will pay October before the October payment is due. MR. KANEALI`I-KLEINFELDER: Wow. Good job. MS. HIROTA: So we'll pay October. MR. KANEALI`I-KLEINFELDER: Thank you. MS. HIROTA: November, and then December. MR. KANEALI`I-KLEINFELDER: I think you read my mind, yeah. Ultimately, what we're seeing is if they're not paying their mortgage, then that means that escrow is not being paid. Which means that in the end, there won't be any property tax to collect, yeah? MS. HIROTA: Yeah. There's insurance and other, yes. So we listened and we made the changes. MR. KANEALI`I-KLEINFELDER: Good. I had some people, basically they're using their savings. And they're saying, "Well, I'm not in a problem, but I am. I can make my payment, but not because I have funds, but because I'm utilizing everything else." Or"I've maxed my credit cards out." And they're scared, because no one wants to go into that situation with their lender for their mortgage. This is their home. I mean, circumstances are, you know, these are hard for everybody. Page 40 GREDC-27 September 15,2020 MS. HIROTA: And if it's the way we—if it works out, right, then we will pay December in December. Because they program ends on December 30tH MR. KANEALI`I-KLEINFELDER: Okay. MS. HIROTA: They're going to have December paid, if they're in the same situation. We don't need to wait for them to go in arrears in January. MR. KANEALI`I-KLEINFELDER: Wonderful. And then funding-wise, how is the funding for that looking? Are we funded for a while? Is it being used heavily, and we're getting short? How's that looking? MS. HIROTA: So I just jumped off during the middle of a webinar, we're doing now community virtual, community meetings this week; last night, tonight, and tomorrow night, really encouraging, or working with our community partners, landlords, property managers. So to date, they've been in swing for about two and a half weeks. They've already mailed out$500,000 in checks. MR. KANEALI`I-KLEINFELDER: Wow. What is the total they have? MS. HIROTA: Seven point two to five million ($7.25 million). MR. KANEALI`I-KLEINFELDER: Wow, okay. MS. HIROTA: So we're thinking the changes will increase eligibility and allow for more payments. But certainly, allowing families to stabilize their financial situation. MR. KANEALI`I-KLEINFELDER: Yeah, that's what it is. That's what it's coming down to right now. This is they didn't go away after two weeks. So now, here we are. Okay, good. Thank you. That's wonderful. And if anybody else has a question, feel free to jump in. I'm just shooting questions off. CHR KIERKIEWICZ: Okay. Council Member Lee Loy, go ahead. MS. LEE LOY: Thanks, Chair. Sharon, thanks for being here. Around this, as Roy mentioned, it was about affordable housing, homelessness, right, this kind of was big conversation. Is there any thought been given to creating a dashboard, or some type of measure? And I keep asking for this, because I see it being utilized all over. So we know where we need to focus more resources or if we're meeting our benchmarks. MS. HIROTA: So the answer is yes. Page 41 GREDC-27 September 15,2020 MS. LEE LOY: Yay,please. MS. HIROTA: So part of the contract with the Rent and Mortgage Assistance Program, they are building a website with a beautiful dashboard. It will tell you how many applicants they're seeing, what they're paying out, and in what zip code. So the data we're collecting, will show you where applications are coming in from and where applications are being approved. So we can see clearly on a map, the reds and the whites. So the reds, meaning payments going out. And right now, we're seeing a real high focus as we talked to Council Member Richards last night, in Kona, Waikoloa, Waimea, and North Kohala. That's where the bulk of the payments are going right now; which in essence, is where the impact we believe is because of the hotels and people being unemployed. So, yes. And once they finalize the webpage, I will certainly share it with all of you. But it's very nice. And so we're taking that, and we're going to start working on doing the same type of dashboards for food, for the delivery of the community resilience. So the reports that our contractors have to fill out, are very intense because we want to know pounds, types of food, we want to know where you're delivering services, how many types of—how many children are you seeing in your childcare by zip code, and what's your income? So yeah, it's got a lot of good data, yes. MS. LEE LOY: And I appreciate that because it'sactually some of that early post information that will actually help us leverage more staff and capacity, right? MS. HIROTA: Yes. MS. LEE LOY: If we want to—if we only have very little resources, at least we know we can focus that resources and amplify a change. I had one other question. And Roy mentioned it, and it was the entry system. I know you're doing it. And this was something he touched upon. Like hey, we need to pay attention during the transition. The Coordinated Entry System, there we go. That database, is that being dovetailed into some of this dashboard information, or these are two completely like standalone programs? And my concern is, you know, as we kind of look at this entire housing need, we have the database regarding the Coordinated Entry System for homelessness. But we're also populating information through this Rental Assistance Program. And so, I'm just trying to think ahead or think around the corner a little bit. Like, is there a way to migrate or merge some of that information so then we can populate, you know, exactly what type of housing types we need? Because rental assistance, we know families, the number of kids, how many counts of food, right, and then we see the trend as far as housing needs. So when we start to refine the numbers, we're looking at developing housing product types that are at a Page 42 GREDC-27 September 15,2020 minimum four-bedroom or multi-family residential. Does that make sense, where I'm trying to go with this? Are those two systems going to stand separate, or is there a way to merge that information? MS. HIROTA: Roy's a better data guy than me. But I will tell you right now it's two separate systems. So the Coordinated Entry was built specifically to track our unsheltered population. And it was built in a way that anyone seeking assistance is entered into one database, so that all of providers have access to the information. So once you've collected the data, you don't need to go ask that person one more time, "I need to see this." And there's case notes in there so you can follow the family. That system allows us to know what the need is, in terms of those experiencing homelessness. It doesn't cover everyone, because someone has to say, "Yes, I want to have information in this system and yes, I want help." So I'm sure there are ways that we can merge the two databases, but I would have to talk to data management organizations to how do we combine the data and look for to address any of the policies, yeah. MS. LEE LOY: Yeah. And I think Roy could appreciate this, right. As a planner we have some of this information, that we know what kind of housing product types we need, we know where we want to actually kind of guide that, and if we don't have the infrastructure by way of roads or water, we can begin to focus right, so that we can start serving the population where they're close to work, where they actually end up becoming stable, right, and then they're around the type of workforce or provide the workforce where the jobs are. So, yeah. Go ahead, Sharon. MS. HIROTA: So the homeless information system, it just tracks the unsheltered. So I'm sure in order to get where you want to go,we also have to ask other questions in regards to because there may be families who are doubled up, families living off the grid that are just surviving and just are not part of our system. They may be part of our homeless point in time count, but certainly not in a position to say, "I want help, and I want somebody to help me." MS. LEE LOY: And then this is my last question, Chair. On the dashboard as it relates to some of this CARES money that we're pushing out. Do we have a benchmark that if we granted them the money, and they're not like in line to spend it all by the deadline? I kind of asked this question of Douglas. Like is there like a point of, "Hey you guys are falling behind. We're going to move it over into another program where we see them on track to spend all the money, and actually there's a bigger need." MS. HIROTA: So all of the contractors were told up front, that this money needs to be spent down before the end of the year. I think most of the contracts are Page 43 GREDC-27 September 15,2020 reading December 7h because of the change in Administration. And so there are—we are receiving weekly reports and we have benchmarks. Like if you're not here by this certain point, we're going to—we'll start having conversations. So between myself and Riley Saito who's the Deputy Director of R&D (Department of Research and Development). The contracts are split between the two of us, so we're getting very we're having daily conversations with the various contractors to just check in, make sure everything is okay. Some have just started, others have been in place for a few weeks, others are about to start. So we have them in different places, but we're certainly keeping track. And the ones so far that have reported, for the most part they're on target to spend down. MS. LEE LOY: Thank you, Sharon. I think one week isas real time information as we can get, and that's just a perfect way to keep a pulse on spending down this money. Thank you, Chair. I yield. MR. KANEALI`I-KLEINFELDER: I wanted to add—sorry—to your question that if the money isn't spent at a certain rate, yeah,they can pull it and provide it to another agency. I don't think you've touched on that. But you do have that ability, yeah? MS. HIROTA: Yes, we do. MR. KANEALI`I-KLEINFELDER: Yeah, okay. CHR KIERKIEWICZ: Just want to check in with folks in Waimea or Kona, any questions for Roy or Sharon on the topic of housing and homelessness. MR. RICHARDS: Yeah. CHR KIERKIEWICZ: Go ahead, Mr. Richards. MR. RICHARDS: Yeah, thank you. Sharon I just wanted to echo my thanks for what you did. And that conversation last night, I think was outstanding. And also would like to congratulate you on you rolling out these funds, getting it into the hands of people that need them and get it there quickly. Because that's what we need to do, we got to make it happen quickly. So I just wanted to echo my support for what you're getting done. Thanks, Chair. I yield. CHR KIERKIEWICZ: Kona? Okay,probably no questions or comments at this time. I just have a couple of follow-up questions. Roy, you mentioned earlier the temporary shelters to help houseless individuals, are the 100 percent capacity at all sites? MS. HIROTA: So Ka Lamaku in Kona is at 100 percent occupancy. Hale Hanakahi, which is at the old parking lot at the NAS Pool. We shut down early Page 44 GREDC-27 September 15,2020 July, because of funding. So Neighborhood Place of Puna was managing up to that date. HOPE Services has taken over, we found funding. And they are right now, I think today's report was 70 percent occupancy. And they're starting to move people in, in waves so to speak. So instead of putting 32 individuals or families, or households I should say, in the units, they're doing like five, get comfortable, another eight. And so they're at about 70 percent right now. CHR KIERKIEWICZ: Can you clarify, how come no more money? Why there was a pause in July, and then we restarted. It wasn't all coming from CARES? MS. HIROTA: No. So the initial funding for the project came from various sources. So the County found money within its Ohana Zones, to purchase the buildings and of course it's County land. The services, we reached out to the Department of Health, Behavior Health Services, out of the State. And we asked them to reallocate some of our Law Enforcement Assistance Diversion Program money, because the program went on hold when COVID started. And so they allowed us to pay for both the management at Hale Hanakahi, as well as the management in Kona at Holiday Inn Express. And so we projected that COVID was going to end in June. But we projected up through and had funding to cover both programs up to end of June. So there was a pause, and now we can use CARES money to cover to the end of the year. CHR KIERKIEWICZ: What happen to the ohana that was staying in the Holiday Inn? MS. HIROTA: So the family CHR KIERKIEWICZ: Because it was a pause. MS. HIROTA: Yeah. So the households because we knew there was an exit date, we initially had an exit date on both projects of June 30'', I think they both ran to maybe July I0h. Both HOPE and Neighborhood stretch their dollars to cover anybody that was in those projects up until that date. So they all were moved to other appropriate housing. Whether it was they went to another shelter, they went transitional housing, they were moved off island. They were not put back on the streets, in other words. CHR KIERKIEWICZ: Okay. MS. HIROTA: Yeah. CHR KIERKIEWICZ: That's great to hear, thank you. The other question I had was about promotion of RMAP. Many of the communities, Matt and I represent Puna, and connectivity is an issue, that's also an issue in South Hawaii. What are some ways that we are insuring that we are outreaching to those communities that Page 45 GREDC-27 September 15,2020 may not have access to the internet where we are heavily promoting this on social media? Are we doing PSAs (Public Service Announcements) on the radio? Are we working with other agencies? I know Boys & Girls Club often goes down and delivers meals. Are they also equipped with these flyers to let households know the opportunities? Just wondering about the partnerships for outreach. MS. HIROTA: So there are PSAs on the radio. Today I heard three for the RMAP. We connected with Kristen from the Food Basket this morning. We are on schedule to be out in Pahoa, with volunteers handing out flyers. They're also thinking of doing stickers with QR (Quick Response) codes and putting them on the box. So instead of handing out paper, but it on the box. And so weHawaii Community Lending and their partners have plans to be at all of food distributions with Food Basket, and then we're also going to connect with contractors who have CARES money who are doing food distribution including HCEOC (Hawai`i County Economic Opportunity Council) and the Boys & Girls Club. And we'll be asking them to help us promote the program. So yes, we truly know that there are people who do not have the connectivity. We also connected with Hawaii Rise and Vibrant Hawaii today. They're opening up 27 hubs I heard, soon. And so they also have laptops and access to WiFi. And so we're going to promote through the hubs, because what we really need to do is get our community to encourage their community to apply. Not the government. The community leaders need to get out there and help us support us in convincing the kupunas and everyone who says, "There's somebody worse off than I am,"that needs it to really apply. CHR KIERKIEWICZ: It's great to hear Sharon, thank you. I'm glad we're levering those partnerships, awesome. Thank you. Roy, I know you have more that you wanted to share with us. MR. TAKEMOTO: Well if we're ready to move from homelessness to the other continuum of affordable housing. There two strategies that we're focusing on, increasing affordable rental inventory; and the second, lowering the threshold of ownership. So in terms of increasing the rental inventory, there were these initiatives that we're doing: controlling short term vacation rentals. So that, you folks helped us with the passing of the ordinance. Planning Department struggled but got under control the registration and nonconforming units. This week, they're meeting with the contractor that they hired to do the enforcement. So in terms of the transition on the short-term vacation rentals, it's just a matter of following through on the Administration of the registration and enforcement. Another initiative is facilitating accessary dwelling units. And I had mentioned I think previously that Planning had in process a bill for a Zoning Code amendment Page 46 GREDC-27 September 15,2020 to liberalize guest houses with wet bars. So all that could be as probably a little fancier option to rent. That wouldn't necessarily trigger an upgrade to a cesspool. The other way to promote accessory dwelling units is through preapproved or factory built modules. So in terms of that we're just trying to promote with the homebuilders and realtors that there is this option. That they can either promote to their clients or even kind of be the promoter themselves. They would be the ones to apply for the permit, to arrange for the financing, do a turnkey operation for any interested landowner. So that conversation still needs to happen. The other way to promote rental inventory is to incentivize landlords. For that we had started, Sharon and I, on doing drafts to fix our existing affordable rental tax class by increasing the threshold of the eligible rent that would make it more amenable to west side. Where the rents are I think too low, below market, that landlords are not really encouraged to participate. So raising that a little bit. And another way to encourage landlords is to have some kind of a case manager, where landlords could turn to if there's a problem tenant or even like a repair fund. So the status on that is still kind of brainstorming. So in order to continue that conversation is just awareness to you folks if you want to pick that up going forward. The other incentive to increase affordable rental inventory is streamlining the permit process. And that is 201H, or a County process independent of the 201H, which is a State enabled process which triggers prevailing wages. So if we do a County process that is a possibility that it wouldn't trigger prevailing wage, which could reduce the delivery of housing cost. So the status on streamlining or coming up with rules that would standardize the process which right now is kind of an ad hoc process, a draft has been done with OHCD (Office of Housing and Community Development), so we hope to get to an approved status by end of November. MS. LEE LOY: Chair? MR. KANEALI`I-KLEINFELDER: Yes, I had a question. CHR KIERKIEWICZ: Mr. Kaneali`i-Kleinfelder. It's his communication. MR. KANEALI`I-KLEINFELDER: Thank you ma'am. The two programs you used in this, what are those, those are initiatives form the Mayor's Office? MR. TAKEMOTO: Yeah. These are just what we thought were the strategic pressure points that we could get some traction on and make good traction; actually make a difference somewhere in the process. So we decided that the strategic priorities would be vacation rentals, accessory dwelling units, trying to find ways to incentivize landlords, and to streamline the permit process. Page 47 GREDC-27 September 15,2020 MR. KANEALI`I-KLEINFELDER: So the permitting process, the last two you talked about was something similar to the 201H. MR. TAKEMOTO: Yeah. MR. KANEALI`I-KLEINFELDER: What is that? MR. TAKEMOTO: Okay. So something similar to 201H. 201H is actually if you read it, you'll wonder how does this apply to the County. Because it references the State agency HHFDC (Hawai`i Housing Finance and Development Corporation). But in there it makes reference to enabling the counties through HRS Section 46-15 (Hawai`i Revised Status), where 46-15 allows the counties to do experimental demonstration housing. So that 46-15 doesn't exclusively bind the counties to 201H. We could do an independent demonstration or experimental type of program. MR. KANEALI`I-KLEINFELDER: And then you can step away from prevailing wage? MR. TAKEMOTO: Yeah. HHFDC had made an opinion that their 201H process triggers prevailing wages. MR. KANEALI`I-KLEINFELDER: So all 201H's have to do prevailing wage? MR. TAKEMOTO: Yeah. MR. KANEALI`I-KLEINFELDER: That kind of ties up some things in my head. Thank you. Appreciate that. Interesting. CHR KIERKIEWICZ: Ms. Lee Loy. MS. LEE LOY: Hi, Roy. Thank you. And I think, Sharon, you might need to come back. And regarding that accessory dwelling units to increase the affordable rentals, share with me again the maximum square footage on an ADU (Accessory Dwelling Unit). And there's some requirements with an ADU so that they can be eligible to funding through County housing, right, like it has to have a kitchen. Can you share with me again what a basic ADU needs? MR. TAKEMOTO: I forgot what the there's a maximum floor size unit, right, gross floor area. And the minimum is set by the building code. MS. LEE LOY: So it's like 600 square feet, something like that. Page 48 GREDC-27 September 15,2020 MR. TAKEMOTO: Yeah, something like that. But we were trying to get the tiny homes appendix approved too, yeah, which would lower the minimum. So you can do a guest house now, without a kitchen, and you could rent it out. MS. LEE LOY: But without a kitchen are they eligible for other rental fee? MR. TAKEMOTO: Wouldn't be eligible for Section 8. MS. LEE LOY: Section 8. Okay, so yeah, there was like kind of this balancing act we can create the house, right, like a livinga place to lay their head. But some of the amenities that's not there, they wouldn't be eligible for Section 8 funding or rental assistance. MS. HIROTA: So under the HUD (Housing and Urban Development)program there are certain eligibility requirements that the unit must meet, right? HUD doesn't define kitchen, except it needs to have a place to prepare food. So counter space, a sink, which could be located in the restroom or in the hallway, and it just needsa microwave or a hotplate suffices. So doesn't need the range, refridgerator. Well it does need a refridgerator, but it doesn't specify size. So you could do an apartment size under the counter. So very similar to the Hale Kikaha project in Kona, right? It has a space for food, we provide the microwave, the refridgerator. There's one sink, and it's shared between the restrooms and the kitchen. MS. LEE LOY: Go ahead Roy, looks like you want to share something. MR. TAKEMOTO: No, that's interesting. So the bill that Planning is working on could qualify Section 8? MS. LEE LOY: There's a few of us involved in this, kind of housing opportunities. Okay, so also part of this housing, the complex nest of delivering affordable housing is this AMI (Area Median Income), right, and meeting that. And through my work with the construction codes, you know, I'm learning that Hawaii County, right, their AMI is $20,000 less than other counties. For a developer to walk in and provide these affordables, they can make the price point, right? In Maui, Kauai, or City and County of Honolulu, because their AMI is hovering around $87,000. Whereas for us it's lower, and so to pencil out a unit is challenging. I promise I'll get to a question. In addition to providing affordable housing, affordable rentals is COVID and this pandemic. And what we're seeing across the North West was the shutdown of lumber mills. Truckers not working because of the pandemic, and now the fires. And so I've been tracking a trend because lumber is a commodity, right. And now we're seeing the price of that commodity go up to about$600 per thousand linear feet. So I'm getting nervous Sharon, Page 49 GREDC-27 September 15,2020 Roy, that the cost of constructing even a modest 800 square foot home what may cost$150,000 just in construction material, we will see go up because the commodity itself has gone up. Coupled with and compounded by the PUC (Public Utility Commission) decision for outer island shipping cost. So as we ship this commodity of number from the Northwest to Honolulu, right, it's already $600 more, plus another 46 percent, right,that's going to be tacked on to a shipping cost. How do we go about raising the AMI for our county, so that we can start to balance these trends that we're going to see, higher lumber costs, additional shipping costs, while still trying to make it affordable? And I see the critical pinch point being the determination of the AMI, how do we make that change? MR. TAKEMOTO: I don't know if we can control that, because that's based on income and statistics, yeah. What you can control is the percentage of the AMI, but not in terms of eligibility for federal programs. So the rent that you could charge would be determined by that and the family. What would change though, and Sharon can speak to this. Okay, so let's take rent. Okay, so the AMI determines say 30 percent of the AMI family earning debt they only pay 30 percent of the rent. So the market rent, how is that determined because the subsidy would have to increase as the market rent increases to pay the difference between what the renter can afford at 30 percent of their income and market rent. So Sharon can speak to how the market rent would fluctuate. MS. LEE LOY: So you—like if there's all these economics that is happening and I'm concerned. Not afraid, I'm concerned that if we're not keeping an eye on those things no matter what we choose to change, even if it's an expedited permitting process, if the construction cost in and of itself goes up, and it's going to go up, we're still going to not meet the ability for people to move into houses. So Sharon, you know, explain that rental. MS. HIROTA: Yeah. So what Roy said, is exactly true. We truly don't have control over the calculation of how they calculate the AMI. That's done at the federal level. And it's normally two or three years behind the trend, right. So by the time it goes up it should be going down and just the opposite. And I know that the Office of Housing has done studies and have paid for studies that HUD would accept in between their studies, right. Because they do their studies every 10 years, but if we do one interim, then the numbers can be raised. But it doesn't necessarily always impact the AMI. It impacts what they call the payment standard, which drives the amount that household could be eligible for, or renter I should say, an owner could charge to someone receiving federal subsidy. So if the cost of the rental unit goes up, because the cost to build the unit goes up. In essence what happens without additional federal dollars, we're going to help less families. Because the same million dollars in subsidy, if we're helping Page 50 GREDC-27 September 15,2020 providing more monies to more families we're going to help less families. HUD's not going to give us in proportion just because your cost of the affordable unit went up by 20 percent, so I'll give you 20 percent more. They'll say, you figure it out, which in essence leads to leaving vouchers on the shelf so to speak because there's no funding to support it. So it's important for our Housing Office to stay on top, and to ensure that we're spending down up to, you know, close to the 100 percent without going over of our funding, because that will continue to maintain. But keeping up with what you just explained, and the potential increase in the cost of just building an affordable unit, even if that's allowable, the rent will go up and the family will need to pay more. If they're lucky and they get subsidy, their share will not go up, but there will be less families that we can help. So we have to be creative, yeah. MS. LEE LOY: Yeah, Sharon, thank you and Roy. I think these housing strategies are awesome. I think there's this commodity market pandemic issue that's kind of creating some king of clunkiness and wonkiness so that whatever subsidies we are trying to provide, really we're going to be falling short. And I just want to give more thought to that. Because in addition to these housing strategies, I think we also have to put some strategies around what happens when the market is making the unit go up beyond what we anticipate. I see Roy nodding. You know, Roy if you have some thoughts around that? MR. TAKEMOTO: Yeah. Okay, so the AMI affects renters in terms of being able to help less renters as the subsidy portion increases. But I think the impact is greater for"for sale" homeownership type units, the AMI, because the sales price is determined by a percent of the AMI. So when the sales price, say if you allow for the home to be sold at a 120 percent or 140 percent of the AMI that fixes the sales price accordingly. So I think you raised a good point, and I think it's great that you can be sensitive to what you expect developers to deliver to be more accepting if they skew towards the higher end, as the cost of building gets more. So to allow them to build more, at the 120, 140 percent of AMI and not expect them to deliver so many units at 80 percent. MS. LEE LOY: Thank you for that, Roy. And then under the Affordable Housing Guidelines by OHCD, right, a developer has to build so many affordable units right? How long does that unit have to stay affordable or within that pool of affordable housing? And I'm asking, because I know in the past, you know, it had to stay affordable 10 years. And then, you know, someone picked up a home at, you know,just a very modest price held onto it for 10 years and then tripled their money. And that affordable ended up getting ejected out of our affordable housing pool. Has any thought been considered, to expanding the timeline in Page 51 GREDC-27 September 15,2020 which that affordable housing has to stay in that affordable pool? Or even consideration of making it affordable in perpetuity? MS. HIROTA: I think it varies from project to project. And I think it also depends on the funding that supports the project, right? So when you're talking about certain federal funding or low-income housing tax credit, it's built into 30, 40 years that it needs to become affordable. I've known various housing projects that were built prior in years before where there were caps on periods of 10 years. I don't have the exact numbers but there are clauses that you can include if it's an affordable unit that the County or the developer has the first right to buy back, right? And if it chooses not to then it chooses not to then it goes to market. But certainly we would need to look at that. I think one of the affordable housing strategies we were looking also at is the community land trust right? Then it stays with the trust and it continues to be affordable for the next family and sometimes for generations, right? MR. TAKEMOTO: Well, I think you raised a good point that we should continue to explore in terms of amendments to Chapter 11. Because there should be better restrictions, like shared appreciation instead of just open market, unlimited appreciation. Either shared appreciation and if you—or an option to sell it to a community land trust or other nonprofit to rent. But, yeah,just 10 years and then open market. And I think that's how Chapter 11 is now. MS. LEE LOY: Yeah, thank you for that, Roy. And then in addition to, you know,just the affordable just trying to keep things affordable. What's also incredibly valuable to developers is an affordable housing credit. And so I think we also have to incentivize that if we're allowing them to build at the 120, 130 AMI or higher right, that affordable housing credit is also valuable to someone else who cannot build it. So you know,just so much housing strategies that have so much critical links to one another. But thank you for that Sharon, Roy. I mean, you know, we just went through building permits and it's just one part of this housing affordability. So Chair, I yield. Thank you, both of you for the clarification. MS. KIERKIEWICZ: I want to check in with Kona and Waimea. Any questions or comments? MS. DAVID: Thank you. No,just interesting discussion. Thank you very much. MS. KIERKIEWICZ: Thank you, Mr. Richards. MR. RICHARDS: Chair yeah actually just a comment. Roy, thank you for that education on the 201H process. Sharon and I have actually been working on some things over the last probably coming up on two years trying to get some Page 52 GREDC-27 September 15,2020 affordable housing going forward. It's a good reminder, good discussion to have about what we as Council need to be mindful as we go forward. Roy pointed out the comment about the 140 percent AMI. And there is one technically affordable housing project, but everything was at 140 percent which really wasn't affordable. And so that project didn't get any traction going forward. And so we as Council look at this coming forward, we have to be mindful there needs to be a portfolio and a spectrum of affordability in that, whether it's 60, 80, 100, 120; actually,probably a smatter of all. Also under the 201H, the Council has a lot of authority as it governs to our County. Roy, I do want to catchup to you on this. Doing a County 201H-ish. I think there's some interesting merit in that going forward. And Sharon, to what you were talking about, I was working with one developer when they talked about the affordability. Let's just pick a number, say we build 1,000 units every year of affordable housing that has 10-year must maintained their affordability then in 10 years you go to market. Well after 10 years you're actually not building anymore capacity because it's converting to market all the time. And some of the developers I was working on was willing to and very happy to in perpetuity as Ms. Lee Loy pointed out, going forward. Because what that does is that it allows us to build an affordable inventory that we're scribing to get done. So this is an interesting conversation, Roy. Let's catch up on this County initiative because I think there may be some magic in that one. So again I appreciate the education. And we as the Council have to be mindful. We can get some of this stuff done but we have to actually get it done. So thank you, Chair, I yield. MS. KIERKIEWICZ: Thank you. You guys want to continue? MR. TAKEMOTO: There's only—in terms of lowering the threshold of homeownership that Sharon mentioned, the Community Land Trust. But there are two other ideas that unfortunately I think all we can do at this point in the next couple of months is to continue the conversation and try to crystalize some ideas that hopefully you can carry forward. Those two are alternative ways of building and site planning. So that would be like modular expandable units, particularly factory built housing or other ways of preapproved kind of designs. And then the pocket neighborhood kind of alternative, to meet density with smaller clustered cottage-type of units. The second idea for further conversation is innovative financing for regional infrastructure, where the government's contributions would be used towards the subsidy of affordable units, to kill two birds with one stone. To provide the regional end infrastructure, and then to provide the financing for the subsidy portion. That's all for me. Page 53 GREDC-27 September 15,2020 CHR KIERKIEWICZ: Roy, do you have any more beyond housing that you wanted to talk about or? MR. TAKEMOTO: Next month, I was going to focus on transportation in terms of multi-modal and connectivity. CHR KIERKIEWICZ: Okay, so each of the conversations will be very topic specific, but you're going to drill down into all of the work that you have kind of up in the air,juggling lots of balls. Okay, Mr. Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: I wasn't sure how much longer you wanted to go, but out of respect for everyone it's time if we could maybe follow up on different conversations that are very interesting. But maybe not right now, so we can get everybody home before seven o'clock. I did have two things. Can we lower the flags to half-mast come tomorrow? I think a lot of the State is doing that. I forget my second one. Actually no, sorry, Sue, you touched on it, the fires that was interesting. Because that was on my list to talk about, was how this was going to affect us. The flags are flying at half-mast in Honolulu, and I was wondering if we could do the same here. And that's all I had. Thank you. I yield. CHR KIERKIEWICZ: Thank you. Thanks, everyone. Any other questions or comments from Waimea or Kona? MS. DAVID: Thank you, no. CHR KIERKIEWICZ: Okay. Thanks, everyone. Long day appreciate you sticking with it. Roy, Sharon, really appreciate your time, late into the evening to provide us a very detailed report. Roy, I want all your binders. I'll share with Sharon and Sue. Alright there is a motion on the floor to close file on Communication 659.10, all in favor please say "aye." Vote on Comm. 659.10: The motion to close file on Comm. 659.10 was carried by Filed the following voice vote: Ayes: Committee Members David, Kaneali`i-Kleinfelder, Lee Loy, Richards, and Chair Kierkiewicz—5. Noes: None. Absent: Committee Members Chung, Eoff, Poindexter and Villegas —4. Excused: None. Page 54 GREDC-27 September 15,2020 CHR. KIERKIEWICZ: Thank you. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. (There were none.) BILLS FOR The Chair directed the Committee to proceed to the next order of ORDINANCES: business, Bills for Ordinances. (There were none.) MS. KIERKIEWICZ: Can we have a motion to adjourn? ADJOURN- There being no further business, at 6:20 p.m., Ms. Lee Loy moved to adjourn MENT: the meeting. Seconded by Mr. Kaneali`i-Kleinfelder and carried by the following voice vote: Ayes: Committee Members David, Kaneali`i-Kleinfelder, Lee Loy, Richards, and Chair Kierkiewicz— 5. Noes: None. Absent: Committee Members Chung, Eoff, Poindexter and Villegas—4. Excused: None. CHR. KIERKIEWICZ: The Committee on Governmental Relations and Economic Development is adjourned at 6:20 p.m. Thank you, take care. Approved: 1.)AW) Ms. Ashley L. Kierkiewicz, Chair ( ate) Governmental Relations and Economic Development Committee RK/rk Page 55