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HomeMy WebLinkAboutMIN FC 2021/01/05 2020-2022Committee on Finance 1St Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii January 5, 2021 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 2:31 p.m. in the Council Chambers, Hilo, by Mr. Matt Kdneali`i- Kleinfelder, Chair. ROLL CALL: Present: Mr. Matt Kdneali`i- Kleinfelder, Chair Ms. Heather L. Kimball, Vice Chair Mr. Aaron S. Y. Chung, Member Ms. Maile Medeiros David, Member (via videoconference from Kona) Mr. Holeka Goro Inaba (via videoconference from Kona) Ms. Ashley L. Kierkiewicz, Member Ms. Susan L. K. Lee Loy, Member Mr. Herbert M. "Tim" Richards III, Member Ms. Rebecca Villegas, Member (via videoconference from Kona) (came in later) STATEMENTS FROM THE PUBLIC ON AGENDA ITEMS- COMMUNI- CATIONS: Change Order of Business: The Chair directed the Committee to proceed to the next order of business, Statements from the Public on Agenda Items. The Chair called Wesley Takai, who registered to speak and comment on Comm. 27, and came forward when called. CHR. KANEALI`I-KLEINFELDER: Mr. Clerk, I believe we have a request to read in Communication 36. The Chair directed the Committee to proceed to the next order of business, Communications. As directed by the Chair and with no objection from the Council Members, the following item was taken out of order: FC -1 January 5, 2021 Comm. 36: APPOINTMENT OF DEANNA S. SAKO AS FINANCE DIRECTOR From Mayor Mitchell D. Roth, dated December 8, 2020, requesting the Council's review and confirmation. Required Council Confirmation by: February 5, 2020 (Section 13-8, Hawaii County Council) Motion to Approve Ms. Kierkiewicz moved to recommend confirmation of the appointment of Ms. Deanna S. Sako as Finance Director. Seconded by Ms. Lee Loy. CHR. KANEALI`I-KLEINFELDER: Mr. Roth, would you like to come up? And go ahead when you're ready. (Note: At this time, Mayor Mitchell D. Roth came forward to address the members of the Committee.) MAYOR ROTH: Aloha. And thank you very much, Chair Kaneali`i-Kleinfelder and other members of the County Council. It's a pleasure to be up here again. This should be your easiest one of the day because it's already been done for you at least one time already. So I'm here for the confirmation of Deanna Sako. She has over 21 years of experience in the County, clearly meeting the Charter requirements. She actually has been the Finance Director. She is the current Finance Director. And unlike every other member of my cabinet, this is the only department that I didn't feel a need to even do interviews for. Now, I'll tell you one of the reasons why. As a department head for the Prosecuting Attorney Office and having to go through what's going on now with all of the departments, I had a chance to witness Ms. Sako's expertise and knowledge of the County budget in every little detail of every department's budget. One of the things that I've done this year, which is I think has never happened before is I've invited the Council Members to actually witness that happening. You know, I know that Ms. Sako has talked to some of you. I've tried to talk to some of you, to allow you to see what goes on in putting the budget together. What I appreciate—there's so many things I appreciate about Deanna in the way she's done her job. But having been a department head, on the other side of Finance, kind of being frustrated with not being able to get things, when we're in the situation we're in right now, if you need someone who's going to make common sense decisions on how our budget is taken care of, if you look at our County budget, I think we have our top bond ratings for several years. That Page 2 FC -1 January 5, 2021 doesn't happen just because of the Mayor, it happens because of someone behind the wheel as the Director of Finance. Prior to being the Director of Finance, she was the Deputy Director of Finance, under Nancy Crawford. And I know having gone through eight years of budget cycles as the Prosecutor, how hard she works. And seeing her, in the role of the Mayor and having conversations with her, she knows where all of the pitfalls are for our County. And where we are physically with coronavirus, it was really important to me to have someone who had the best experience possible to lead us in our County finances, and so I wholeheartedly support her confirmation. I believe if you follow what you said, you know, that you would do, follow the requirements of the Charter, this should be really a no-brainer. I'm available to answer questions. But I thank you for the opportunity to bring up Deanna Sako. (Note: At this time, Acting Finance Director Deanna Sako came forward to address the members of the Committee.) CHR. KANEALI`I-KLEINFELDER: Thank you, mister—how do you want me—what do you want me to call you? MAYOR ROTH: You can call me Mitch. CHR. KANEALI`I-KLEINFELDER: Mr. Mayor? MAYOR ROTH: You can call me Mayor. I don't care. Whatever you want to call me. CHR. KANEALI `I-KLEINFELDER: I'll call you Mayor. MAYOR ROTH: Here you can call me Mayor. CHR. KANEALI`I-KLEINFELDER: Thank you, Mayor. And I appreciate you being here to introduce each one of your appointments. I think that's a nice touch, so thank you for that. Are there comments from the rest of the Council. I see no lights in Hilo right now. Kona, anyone have anything to say? MR. INABA: Chair, this is Holeka. CHR. KANEALI`I-KLEINFELDER: Go ahead, Council Member Inaba. MR. INABA: Is Deanna there at the table? Page 3 FC -1 January 5, 2021 CHR. KANEALI`I-KLEINFELDER: She is. MR. INABA: Hi, Deanna. I just want to thank you again. Myself being a new Council Member, I guess for Heather as well, we've been so lucky to have you share all of your expertise and kind of get us onboard, so big mahalos to you. I know that the financial health of the County is in good hands with you, so mahalo for sort of sticking around for another term. Mahalo. CHR. KANEALI`I-KLEINFELDER: Thank you, sir. Kona, anyone else? MS. DAVID: Chair Kaneali`i- Kleinfelder? CHR. KANEALI`I-KLEINFELDER: Go ahead, Chair David. MS. DAVID: Thank you. Aloha. Mahalo, Mayor Roth, for this nominee. And, Ms. Sako, I can't tell you how much I believe you so far exceed the Charter requirements for the Director of Finance. And I'm just very proud to be—to have an opportunity to work with you again in this next term. So thank you for all your hard work and for being always available and doing an excellent job in your position as Finance Director. So I will wholeheartedly support your nomination and confirmation. Mahalo. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you, Chair David. MS. VILLEGAS: Chair Kaneali`i- Kleinfelder? CHR. KANEALI`I-KLEINFELDER: Council Member Villegas? MS. VILLEGAS: Yes. Aloha, Deanna. Thanks for being here again today and for your willingness to continue serving our County in this capacity. I truly believe that it benefits our County to have concurrence in leadership in the Department of Finance, which is in the best of years still incredibly complexed, and so many different to facets to manage, and control, and support. And here in this last term, all the challenges that have arisen, I am deeply grateful for Mayor Roth in asking and inviting you to continue in this role. And I truly believe that it will continue to benefit our County to have you at the helm watching the numbers for us. And with the history and the experience and the relationships that you have, there's such knowledge there, and insights and wisdom for patterns, areas that we don't want to duplicate; areas that we do. And, you know, where to find resources and funds, and how to allocate them in the most efficiently and effectively. So I look forward to continuing to work with you in this next term. And congratulations. It's the plight of the competent, you gracious woman. Page 4 FC- I January 5, 2021 CHR. KANEALI`I-KLEINFELDER: Thank you, Ms. Villegas. Coming to Hilo, Tim, you can go ahead. MR. RICHARDS: Thanks, Matt. First, did you want Deanna to say a few words before we get into things? CHR. KANEALI`I-KLEINFELDER: Oh. MR. RICHARDS: Just thought that— CHR. KANEALI`I-KLEINFELDER: That would be very fitting. Sorry, Deanna. Go ahead. MS. SAKO: It's okay. I do want to thank all the Council Members for very kind words. CHR. KANEALI`I-KLEINFELDER: We know you so well. MS. SAKO: But yeah, it is an honor to be asked to serve again and to continue to serve the people of our community, so I am very grateful to be here. But I'm happy to answer any questions you have. And as many of you know, I am pretty much available 24/7, so call whenever you need anything. CHR. KANEALI`I-KLEINFELDER: Excuse my not letting you talk first, I apologize. MS. SAKO: That's okay. CHR. KANEALI`I-KLEINFELDER: Tim, go ahead. MR. RICHARDS: Okay, thanks. And, Deanna, thank you. We're here today specifically to talk about your reappointment, and I'm stoked that you're returning. And I think Mayor Mitch has articulated well why you need to sit in that chair. I'm always asking, "What's the interest rate? What's our bond rating? How we're doing with all that?" And I don't want to delve into that because we're going to delve into that later. But just for our community as we're starting a new Mayor and a new chapter in our history, financially how is our County right now, meaning collections for revenues and projections for the next, say six months? This is the part I've been concerned about, but you know that because we've talked about it. MS. SAKO: You know, heading into this fiscal year we were all nervous about what might happen with COVID, you know, where our economy was going. So one of the things was that the February collection cycle for real property taxes Page 5 FC -1 January 5, 2021 was right where we expected it to be. This is the first year that I recall us ever budgeting a seven percent delinquency rate, meaning that we knew we would not collect 100 percent of the taxes billed. So we hit that mark in August. We are anxiously awaiting the February 20th collection date to make sure that continues; and if that continues, that will help us as we prepare the budget for the upcoming year. MR. RICHARDS: Okay. And our GE (General Excise) tax collection, has it been tracking as projected? MS. SAKO: Yeah, so we did expect General Excise Taxes to be about 75 percent of normal, and that's actually almost exactly right on, where they're at. The State has kind of has a lag in its reporting. They collect that and report to us what our portion is, so that's been about 25 percent reduction; and that is what we budgeted, a 25 percent reduction. MR. RICHARDS: Okay. MS. SAKO: Our Fuel Tax has also been tracking right where we budgeted. So it might be just a little off, but it's still—I think it's just a little bit over what we thought it might be. So we've been—our budget is pretty much aligned with what's happening in actuality. You know, only time will tell as tourists start to come back and other things, but right now our budget is in good shape for the current year. MR. RICHARDS: Okay, and that's as much for the public watching as anyone else. Obviously, I'm going to be supporting you, and look forward to working with you. Chair, I yield. CHR. KANEALI`I-KLEINFELDER: Thank you, Mr. Richards. Ashley, go ahead. MS. KIERKIEWICZ: Thank you, Chair. Aloha, Deanna. You know how I feel about you. You're one of my favorite people, one of my County heroes. Thank you, Mitch, for asking Deanna to stay on. I've always been impressed with her work ethic, and really command of the subject. And I also want to thank you, Mayor Roth, for inviting all Council Members to sit in on department budget meetings. I had the opportunity to sit in on Fire's budget meeting; it was over three hours. And I was floored; I mean, Deanna knows where all of the financial levers are. Again, continuously impressed and really appreciated her ability to find ways forward, to make things work, because she really cares about our County. So thank you, Deanna. Page 6 FC -1 January 5, 2021 I just have a couple of questions. I know that you weren't leading disbursement of CARES (Coronavirus Aid, Relief, and Economic Security) money for COVID (Coronavirus Disease) response, but just wondering if you could provide an update on where we are. Did we spend 100 percent of the money that was awarded to our County? MS. SAKO: Yes, it's all been committed. As of December 30th, we have some final payments that are going out the door in January. As the remainder of the equipment or invoices come in, then we'll disburse that. But it has all been committed, and we did successfully spend that. Our challenge now is going forward. The new Act passed by Congress is a little different, so we're working with the State to determine, you know, how that's going to be passed down to us. And if we don't get any of it, then we'll work with FEMA (Federal Emergency Management Agency) to get reimbursed for whatever we can. So, you know, we're kind of straddling back a little bit, making sure that the services we're providing are something we can afford. MS. KIERKIEWICZ: Thank you. And the final question I have was, what are your priorities besides balancing the budget? I mean, we talked about this process being so complexed. It's complexed for all of us, and we've been here a number of years. But what are ways in which we can further educate our community around, what it takes to build this budget, and how the budget is working for them? MS. SAKO: So in terms of priorities, I mean, yes we want to balance, we want to put the highest priority items in the budget. We want to ensure we can move forward. You know, we try to be as transparent as possible. We answer everyone's questions. We know our software isn't quite the right way to be able to publicly disclose everything. It doesn't automatically do that. So that is one of our goals for the coming year, is to upgrade our software. My son just turned 17, and we kicked off our new software the day before he was born. So it's time, it's outdated. It's no longer being serviced by the vendor. So we do know that's a big priority for us in the upcoming year, to be able to select software and get it installed, and hopefully have something that will be more online and available both for our employees and the community. MS. KIERKIEWICZ: Excellent. Thank you, Deanna. We'll be supporting your nomination. Chair, I yield. Thank you. CHR. KANEALI`I-KLEINFELDER: Thank you, Council Member Kierkiewicz. Heather? Page 7 FG1 January 5, 2021 MS. KIMBALL: Thank you, Chair. Nice to see you again, Deanna. I am new to this, as you know. But I appreciate you are immediately reaching out to me once I took office, and then saying, "Okay, let's go over all the nitty-gritty," and we had quite a good time covering all the details. And thank you for bringing me up to speed on everything. I think that—don't tell the guy next to you, but you really hold a lot of the power in this County, right, as the person that holds the purse strings. I appreciate the level of responsibility, and respect that you have for the role that you serve. So I look forward to getting to know you better, sitting in with these department meetings and learning more, and working together with you over the next couple of years. So mahalo for serving. CHR. KANEALI`I-KLEINFELDER: Very nice comments, Council Member Kimball. Ms. Lee Loy. MS. LEE LOY: Thank you, Chair. Of course, Deanna, we'll be supporting your nomination. And then bouncing off of some of what Mr. Richards talked about. You know, looking forward, we have our OPEB (Other Post -Employment Benefits) payments, our CAFR (Comprehensive Annual Financial Report), and you know, I really want to offer the opportunity for you to kind of bring that forward, and then we can talk about it, kind of more transparently. I think that speaks to what Council Member Kierkiewicz is talking about, is a lot of our constituency doesn't understand, like how does it impact me? And then the one other thing I am looking forward to is that you're keeping Steve Hunt, who has been incredibly responsible, and so when you're not available, he always is. So thank you so much for your continued willingness to serve. Chair, I yield. CHR. KANEALI`I-KLEINFELDER: Thank you, Ms. Lee Loy. Any other comments in Hilo? Okay. Deanna, it will be a pleasure working with you, coming forward as a Finance Chair. Also, you know, I think Mitch did a very good job with this appointment, in particular. Given our financial circumstances, our budget being due in about three months, and Deanna's background and expertise in her field, I don't think you could have done any better. So I'm glad that you're here and I'm glad that you made such a good choice, thank you. I look forward to seeing what comes this year, yeah. Any final comments? Anything you want to say? MS. SAKO: No, the budgets due March 1 st, so two months. But yeah, but thank you very much. Page 8 FC -1 January 5, 2021 CHR. KANEALI`I-KLEINFELDER: I know it's coming. MS. SAKO: Yeah, it's coming real fast. Thank you all for your comments. I really enjoyed working with many of you in the past, and I look forward to working with all of you again in the future. CHR. KANEALI`I-KLEINFELDER: Okay, thank you very much. Anything you want to say in closing, Mr. Mayor? MAYOR ROTH: No, I appreciate all of the positive comments. And yeah, I totally agree with you, I don't think we could have done any better. This is, you know—I was looking at her resume, and she was the valedictorian in high school. She's still a valedictorian as an adult. CHR. KANEALI`I-KLEINFELDER: Nicely said. Okay, with that since there's no further discussion, I'd like to call for the vote. All in favor? Vote on Deanna S. Sako: The motion to recommend confirmation of the (Approved) appointment of Ms. Deanna S. Sako as Finance Director was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder – 9. Noes: None. Absent: None. Excused: None. CHR. KANEALI`I-KLEINFELDER: Mahalo for your time. Okay, can we please go to the top of the agenda and start with Communication 25? Return to Order The Chair directed the Committee to return to the order of business. of Business: Comm. 25: REPORT OF ISSUANCE AND SALE: GENERAL OBLIGATION BOND 2020 SERIES A, B, C, AND D From Finance Director Deanna S. Sako, dated November 13, 2020, transmitting a notice of sale and issuance of $77,135,000 County of Hawaii General Obligation Bonds. Motion to Close File: Ms. Kierkiewicz moved to close file on Comm. 25. Seconded by Ms. Kimball. Page 9 FC -1 January 5, 2021 CHR. KANEALI`I-KLEINFELDER: We have Deanna here, if there's a discussion. I'm sure someone—if there's any questions about our bond series. Deanna, would you like to come up to start us off? (Note: At this time, Acting Finance Director Deanna Sako came forward to address the members of the Committee. MS. SAKO: Good afternoon. So we did issue bonds. In October, we sold the bonds. November we closed the bonds, and this is our report of sale. You know, we have not done this for three years. We planned to go out this Spring, but COVID hit. That really wasn't the right opportunity or right timing with the bond market, so we waited until Fall, and we were very successful. And the interest rate combined for all series was 2.19 percent. As far as we know, that's the lowest in the County, at least in recent years. So, we're very happy about that. We did refund some bonds. Not as many as we have hoped to, because at the very end when we went to market, the conditions weren't quite right to have the savings we wanted to incur, so we did only refund some of the bonds. But I'm happy to answer any questions. We did get our bond ratings. You know, we had to update them every time we go out and sell bonds. And so they are pretty good right now. We have a double -a (AA) with a stable outlook from S&P (Standard & Poor's); an AA too, stable outlook from Moody's; and an AA+ with a negative outlook from Fitch. They actually put us on negative outlook last summer, when they did their regular review, and that's primarily because of COVID and the uncertainty and the economic times. So we're not the only one in that situation. But I'm happy to answer to any questions you might have. CHR. KANEALI`I-KLEINFELDER: Thank you, Deanna. Any questions from the Council? I have no lights in Hilo. Kona, anything? Okay, seeing no more discussion, to the vote. All in favor of closing file on Communication 25? Vote on Comm. 25: The motion to close file on Comm. 25 was carried by the Filed following voice vote: Ayes: Committee Members Chung, David, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder – 8. Noes: None. Absent: Committee Member Inaba – 1. Excused: None. CHR. KANEALI`I-KLEINFELDER: Moving on to Communication 26. Page 10 FC- I January 5, 2021 Comm. 26: SUPPLEMENTAL SUMMARY OF BONDED INDEBTEDNESS AS OF NOVEMBER 4 2020 From Finance Director Deanna S. Sako, dated November 13, 2020, transmitting the above report as required per the issuance of $77,135,000 in general obligation bonds on November 4, 2020. Motion to Close File: Ms. Kimball moved to close file on Comm. 26. Seconded by Mr. Richards. CHR. KANEALI`I-KLEINFELDER: Any discussion? MR. RICHARDS: Quick question. CHR. KANEALI`I-KLEINFELDER: Yeah, go ahead, Mr. Richards. MR. RICHARDS: Yeah, Deanna, total debt or bond debt, am I reading this correctly? It appears we dropped by about $12 million, is that correct? MS. SAKO: Yeah, we probably have had additional principle payments since the last report. We did do a report recently because we closed on the Lono Kona Improvement District bonds. MR. RICHARDS: Okay. MS. SAKO: So any time we sell bonds or enter into any kind of debt, this report is required to submitted to Council. So the amount does change constantly throughout the year as we make principle payments on our bonds. MR. RICHARDS: Okay, so currently right now what I'm looking is about $433 million, is that correct? MS. SAKO: That's net of the—our total bonds are $482 million, and then the net amount is $433 (million), which is after the remaining bonds that will mature in the current year, and the additional bonds that are going to be reimbursed by Water Supply and others. MR. RICHARDS: Okay. MS. SAKO: Yeah. MR. RICHARDS: Alright. Thanks. Chair, I yield. CHR. KANEALI`I-KLEINFELDER: Thank you, Mr. Richards. Any further comments or discussion? Okay. My question for you, Deanna, is our bond, you know, our percentages or our rates, are they tied to what's happening in the world Page 11 FC- I January 5, 2021 right now? I mean, is it a good time to be looking at bonds? I know we pulled one last year, but just— MS. SAKO: So the rates, I believe, are still favorable to our—favorable meaning low to us, maybe not to the buyers. CHR. KANEALI`I-KLEINFELDER: Yes. MS. SAKO: But the rates are good, and we continue to watch the market. But we also don't want to get ahead of ourselves because we have requirements with IRS (Internal Revenue Service), that they be spent in a certain amount of time, otherwise we have to pay back certain amounts to the IRS. So we closely monitor our arbitrage so that we don't get in that situation where we have to pay back the IRS. Because we get to issue the bonds tax exempt, there are additional requirements. CHR. KANEALI`I-KLEINFELDER: Okay. And the bonds that already exists, are we allowed to—? MS. SAKO: The rules on refunding them and kind of refinancing so to speak, have changed significantly under the current presidential administration, so we continue to look at opportunities to refinance. But the rules are a little bit different, so we don't get to refinance quite as easily as we could before. But we were able to take advantage of that with this recent bond sale and we were able to save some money. So we continue to look at opportunities to do that in the future, as well. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay, any further discussion? Okay, seeing none, I'll call for the vote. All in favor? Vote on Comm. 26: The motion to close file on Comm. 26 was carried by the Filed following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder – 9. Noes: None. Absent: None. Excused: None. CHR. KANEALI`I-KLEINFELDER: Clerk? Page 12 FC -1 January 5, 2021 Comm. 27: 2020 ANNUAL REPORT: REAL PROPERTY TAX BOARD OF REVIEW From Real Property Tax Board of Review Chair Michael Hughes, dated December 1, 2020, transmitting the above report pursuant to Hawaii County Code Section 19-97(e). Motion to Close File: Ms. Kimball moved to close file on Comm. 27. Seconded by Ms. Lee Loy. MR. HENRICKS: Mr. Chair, we do have Real Property Tax Administrator, Ms. Miura, and Chair Michael Hughes I believe is also here outside, if anybody has any questions. CHR. KANEALI`I-KLEINFELDER: Yeah, I think—yeah, have him come in. know Mike's been waiting patiently. Good morning. You can come on up. Or good afternoon, it's been a day. (Note: At this time, Real Property Tax Administrator Lisa Miura and Real Property Tax Board of Review Member Michael Okamoto came forward to address the members of the Committee.) MS. MIURA: Just to clarify, we have Michael Okamoto here for Chair Michael Hughes. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay, who wants to just lead? Just give us a breakdown of what we have in front of us, and I appreciate you being here, waiting for us patiently. MR. OKAMOTO: What you have in front of you is the Annual Report of the Tax Board of Review. I'd just like to say that I've been on the board since July, so I'm one of the newest members. I was very impressed by the way the board was run. The appraisers were well-prepared, very professional. The staff, the supervising appraiser, the assistant, administrator, and the clerk that's waiting out there, they're all very helpful. So I just want to say that I was very impressed with the way this board was run, and the whole appeal process. So having been a former employee of the County, I think you can be rest assured that this board was very well-run. CHR. KANEALI`I-KLEINFELDER: Thank you, Mike. Appreciate that. Lisa, you want to touch on the report at all? MS. MIURA: Lisa Miura, Real Property Tax Administrator. So each year the Board of Review submits their report and things that they felt came out positive. But in addition to areas that they feel like should be looked at and to being changed under the legislative matters, and so it was the board's great wish that it was, you know, just considered and looked upon. We know this year's Page 13 FC -1 January 5, 2021 COVID-19, the board's report doesn't necessarily mean that we pushed—we thought should be changed on them. This is coming directly from the board. So Mike is here to speak on behalf of what the board had suggested in the report. But we're both here in case you have any questions. Some of it did coincide with what the Real Property Tax Review Working Group had also suggested. CHR. KANEALI`I-KLEINFELDER: Okay, thank you. Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Chair, and thank you for both being here. But I did want to bounce down to that legislative wish, right, and I think most of our colleagues are looking at that. And when I read that, it basically encapsulates—it's eight years, right? It's been eight years with the wish to repeal the Nonspeculative Residential Program. And so, I just wanted to hear from both of you. You know, the board is making that recommendation, and then of course the department has to manage all the different accounts and how the money comes in. I just wanted to understand, one, why something as actionable that's being put forward by very smart and intelligent deep -thinkers, why that's not advancing, and then who would be tackling the legislative policy writing? Because Chair Chung—or Aaron Chung mentioned many years ago, our Tax Code is the most complexed thing we have in Hawaii County. And so I know personally, I would be very apprehensive to try and tackle a legislative policy change in that area. I know there were a lot of questions on that, so if you guys could share. MS. MIURA: So the Nonspeculative Program of all legislative matters, and it's true that when it comes to the Real Property Tax Code, there is a lot of apprehension to any changes that are made. It's really easy to keep adding programs, but when you start taking away programs, a lot of people—it's going to affect somebody negatively, and it's always pretty frowned upon. When the County Council had done, in 2012, having the IAAO (International Association of Assessing Officers) do an audit on our office, the top thing they said was our County Code was so intense and cumbersome when it came to real property tax versus most other Codes throughout the whole country. And the County Code is approved by County Council. And so through the years, you're going to see a lot of what the constituents want come out into the County Code. So when it comes to legislative matters, it is my understanding it can come from the administrative side or it can come from the County Council side. Rarely do you see real property tax necessarily come in and make changes, because we're here to adhere to whatever the County Council does to the County Code. So previously in a testimony, you heard a former Real Property Tax Administrator, Wesley Takai, who has the most vast knowledge about all of these because he Page 14 FC -1 January 5, 2021 was here when the code was put into place and tall the changes throughout the years, so he speaks very knowledgably about the history and the pros and the cons to any changes. As I mentioned earlier, it's just really hard for administration, I think, to come forward with any changes. Taxpayers always tend to feel like we're doing something to try and always make more money versus trying to clean up the code, any time something's done with real property tax. So I think that's what the biggest challenge is. But with the Board of Review and the Real Property Tax Review Working Group, after two years, they both have the same recommendation with the Nonspeculative. It's not going to make everybody happy in the program. It is predominantly an East Hawaii program right now. From the time this report was submitted, we've already—some other people have pulled out of the program, so you'd have 459 parcels in the program; eighty-three is from Hawi to Ka`u, with 376 being the rest in East Hawaii. And so—what Mr. Takai was talking about earlier is—there's a lot of confusion about the Nonspeculative. Originally when the County Council approved to increase the home exemption tax rates and add the three percent cap, it was the intent that this program would end. At the time, County Council did not end the program and rather they just let people keep going in and renewing, but no new people could come in. So that is the biggest gripe we have, it's not—they don't consider it fair and equitable when your neighbor can be in a program forever, but you cannot get it. So it is a hard decision to make, like everything else that changes with real property tax. But that's the basic gist of it. We do have people—most people are in support. We've had some complaints go through. I think the most recent complaint I've got about the program, was last year it went to Council Woman Villegas, I believe, about a guy who had a $19,000 rollback. So it's just when people are renewing, they don't understand the full effects of what can happen. So anyway, that's pretty much the Nonspec in a nutshell. The proposal by the Real Property Tax Review Working Group was to have them come out at the frozen rate, and then they could go to the three percent. Members of the public believe you should pull them out at frozen and keep them in the frozen, so that's something that could be further discussed, if anybody is interested in advancing it. MS. LEE LOY: Lisa, thank you so much for that explanation. You know, I just—I'm going to say it again, I am very apprehensive to take on challenges respective to this section of our Code and codifying changes. But if anybody Page 15 FC -1 January 5, 2021 you know, I'd be more than willing to try and have a conversation. Because I come from a place where—I'm just kind of that regular person who's got to pay their taxes, right? But you also want to understand all the consequences ,whether you jump in or not. I did have one other question. Did the working group consider revenue enhancement by the way of allowing people to pay forward, you know, their real property tax bill, like two years in advance and with at discounted rate? I'm asking that because I know we're going to be going into real tough times. I'm almost—I'm speculating that maybe if we could see some advanced payments, that we could look at that at budgeting, and then move other things in a more systematic way where we know we could actually count on that money coming in, not just in that particular year but the next year to follow. MS. MIURA: Well, so for this report was the Board of Review Working Group—sorry, the Real Property Tax Board of Review, they did not get into anything about income for the years forward. As far the Real Property Tax Working Group, that ended prior to COVID even starting. So their two -years was up last year in October. MS. LEE LOY: Lisa, I always appreciated you. You're just telling it like it is. Chair, I yield. CHR. KANEALI`I-KLEINFELDER: Thank you, Council Member. Mr. Richards, you had your light on? MR. RICHARDS: Yeah, thank you. Thank you, Lisa. And I get what Sue is talking about, dealing with this right now. Procedurally, and maybe the Clerk needs to weigh in on this as I recall, touching the tax rate, we can only do about a two-month window, May and June, if I recall right. And having this as a priority for eight years, I kind of think that the working groups and the committee have given some thoughts, so I think, at the very least, we need to have a conversation about it. Granted right now we're not sure we're going to be with our finances, but I do appreciate the comments. Mr. Okamoto, I appreciate you being here because this does help us out going forward. It's a weird thing that we can only touch it during the few couple of months, when we're talking about the tax rate. But I think this comes back to our whole budget overall. And when it comes to talking about legislating not in the silos that we'd like to get ourselves into, but we're looking at income stream compared and bumping against our expense. So I think we definitely have to put this on the table for conversation. So I'm going to leave it go at that right now because it's not the time, but I think as we come forward we should be talking about this. Chair, I yield. Page 16 FC -1 January 5, 2021 CHR. KANEALI`I-KLEINFELDER: Thank you, Mr. Richards. Mr. Chung. MR. CHUNG: Deanna? (Note: At this time, Acting Finance Director Deanna Sako came forward to address the members of the Committee.) MR. CHUNG: And by the way, you weren't offended that I didn't say anything about you, right, during your appointment? You know how I feel about you. I just didn't want to waste time. MS. SAKO: No worries. Yes, what can I do for you? MR. CHUNG: What's your opinion on this, the repeal of the Nonspeculative Residential Program? You support, not support, reserve, what? MS. SAKO: We know it's a program that probably needs to be phased out. As several have mentioned, you know, not everybody understands when they re -up if for whatever reason you cannot fulfill the commitment of the ten -years the rollback, so it's probably time. But we had the task force or the working group, Real Property Tax Working Group report, and as we're getting ready to look at their recommendations, COVID kind of hit, so we'll probably looking at everything together and making changes all at one time. It will definitely impact some people's taxes, so we didn't feel now, you know, would be a good time. You know, there's other recommendations in the Working Group's report, as well. You know, there will be some ups, there will be some downs, but we're trying not to impact people any more than then they need to be during these economic times. MR. CHUNG: So what, you support it now or not? MS. SAKO: No, it's a program that needs to be phased out. Yes, we agree. agree. MR. CHUNG: Phased out or repealed? MS. SAKO: I don't—we would have—I didn't look at the detailed list Lisa has of where people are at. So we kind of need to understand the full impact on everybody. MR. CHUNG: Okay. So anyway, Lisa, should I break the news to her, or no? I'm meeting with Lisa and Wes Takai next week. I had actually talked to Lisa at the beginning of December to see what we can do to follow up on the working group recommendations. Page 17 FC -1 January 5, 2021 MS. SAKO: Correct, yeah. MR. CHUNG: But we certainly got to get everybody's input, right? But if it— you know, if everybody is onboard, then you guys can expect at the very least the repeal of the Nonspeculative Residential Program, coming forward sometime in February. But if you think it's not timely, just let us know, okay? MS. SAKO: Yeah, Lisa just reminded me that even if we pass it in February, the impact wouldn't be until next fiscal year. MR. CHUNG: Okay, right. Correct. MS. SAKO: And so, yes. MR. CHUNG: And so you guys have no problem, right? MS. SAKO: Yeah, that timing would be okay. MR. CHUNG: Okay, because we're going to move ahead on this thing. MS. SAKO: Yeah, and that's fine. MR. CHUNG: Yeah. MS. SAKO: It's just, you know, we're trying to be conscious that, you know, everyone is suffering right now, and so we're just being extra careful. But yeah, it will be the following year. So, that will be fine. MR. CHUNG: And then on other items of that working group, yeah, what they recommended. Okay, thank you. CHR. KANEALI`I-KLEINFELDER: Thank you, Mr. Chung. Kona, any comments? Okay, seeing none. MR. INABA: No. CHR. KANEALI`I-KLEINFELDER: Thank you, Holeka. Okay, any further discussion? No. Okay, so we have a motion on the floor, all in favor? Page 18 FC -1 Vote on Comm. 27: The motion to close file on Comm. 27 was carried by the Filed following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kdneali`i-Kleinfelder – 9. Noes: None. Absent: None. Excused: None. January 5, 2021 CHR. KANEALI`I-KLEINFELDER: Thank you, Lisa. Thank you, Mike. Okay, and then, Mr. Clerk, can we move—I see we have Doug Adams, and I believe Horace. Is that you? And we have Horace Farr here, as well. Let's go to Resolution 20-21. MR. HENRICKS: Yes, you do also have your Acting Auditor outside if you need her, Ms. Pacheco. CHR. KANEALI`I-KLEINFELDER: Okay. Change Order As Director by the Chair and with no objection from the Council Members, of Business: the following item was taken out of order: Res. 21-21: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR LEASE FOR ONE COPY MULTI -FUNCTION COPY MACHINE FOR THE OFFICE OF THE COUNTY AUDITOR Authorizes the Mayor to enter into a five-year lease agreement, with an approximate monthly cost of $130. Reference: Comm. 20 Intr. by: Mr. Kdneali`i-Kleinfelder (B/R) Vote on Res. 21-21: Ms. Kimball moved to recommend adoption of (Approved) Res. 21-21. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members David, Inaba, Kierkiewicz, Kimball, Lee Loy, Villegas. and Chair Kaneali `i-Kleinfelder – 7. Noes: None. Absent: Committee Members Chung and Richards – 2. Excused: None. Page 19 FC -1 January 5, 2021 Res. 22-21: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR LEASE FOR ONE MULTI -FUNCTION COPY MACHINE FOR THE DEPARTMENT OF RESEARCH AND DEVELOPMENT Authorizes the Mayor to enter into a five-year lease agreement, with an approximate monthly cost of $112.50. Reference: Comm. 21 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Vote on Res. 22-21: Ms. Kimball moved to recommend adoption of (Approved Res. 22-21. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members David, Inaba, Kierkiewicz, Kimball, Lee Loy, Villegas. and Chair Kaneali`i-Kleinfelder — 7. Noes: None. Absent: Committee Members Chung and Richards — 2. Excused: None. CHR. KANEALI`I-KLEINFELDER: Okay, can we go to Resolution 20-21, please? Res. 20-21: CHANGES THE FULL-TIME EQUIVALENT STATUS OF AN AGING AND DISABILITY SERVICES SPECIALIST I POSITION FROM A HALF-TIME POSITION TO BECOME A FULL-TIME POSITION Reference: Comm. 19 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Motion to Approve: Ms. Kimball moved to recommend adoption of Res. 20-21. Seconded by Ms. Lee Loy. (Note: At this time, Executive on Aging William Farr came forward to address the members of the Committee.) CHR. KANEALI`I-KLEINFELDER: This was pushed to Committees. We have Director Horace Farr here, as well. You want to come up, sir? (Note: At this time, Executive on Aging William Farr came forward to address the members of the Committee.) CHR. KANEALI`I-KLEINFELDER: And this is regarding changing one position to full-time, and to unfund a half-time position. And I would appreciate Page 20 FC -1 January 5, 2021 you just giving us some background and then answering any questions if anyone has. And thank you for being here today and being patient. MR. FARR: I feel privileged to be here today. We're trying to streamline the office process. It's been very difficult to have half-time temporary positions to fill those positions, and so to try to get the right mix has been very difficult. So our—as we looked over the situation, we assumed that—looked at it, that it would be—we'd get better coverage and better continuity and efficiency for clients that are calling in; that they would be more apt to have the same specialist that they contacted originally. And so we felt it would better to combine the two half-times and unfund one. These positions are all 100 percent grant -funded positions. And so with that in mind, that was our rationale for combining. And then the savings that we would get would be from the insurance side. Because if we had two half-times, we would be paying the insurance on both sides. But by combining, we would just have insurance on one person. CHR. KANEALI`I-KLEINFELDER: Okay. Okay, thank you. Anyone have any questions for Director? Okay, thank you, Mr. Farr. MR. CHUNG: I have my light on. CHR. KANEALI`I-KLEINFELDER: Oh sorry, Mr. Chung. MR. CHUNG: Hi. Good afternoon, Horace. Happy New Year. You know, I'm really glad that this 100 percent grant -funded, right? But how long is that grant going to last? And the reason why I asked that is, you know, a lot of times with other departments you have these grant -funded positions; they have the grants at some point lapse. But now, the County is asked to pick up that position, the payments for that position. Is that going to happen here, or what should we be aware of going forward? MR. FARR: Well, what we have been—I have been working on with the staff, is to make sure that our relationship with the State is in place. And we were told to do some exercises on the 10 percent, 15, 20 percent, that if the State may cut. We did our exercises, and what we have planned for is that—at the position that we are in now, we have planned to make it through 2023, that has been our goal. MR. CHUNG: Grant -funded? MR. FARR: Funding, up to 2022—maintain all of our services, to keep that maintenance of effort for our clientele. So with that, the only thing—so we have been funded with the funding in -hand until 2023. If anything out of the ordinary, Page 21 FC -1 January 5, 2021 depending on what would take place, as with all contracts, right, the clauses in there, "subject to availability of funding." MR. CHUNG: Right, of course. MR. FARR: But pretty much the State has assured us that the funding that they have moved over to us already is in -hand regardless of what happens in the next Legislature. MR. CHUNG: Twenty twenty-three (2023), yeah? MR. FARR: Yeah. MR. CHUNG: But what about—and you've been there long time, so you've seen things happen, right? I mean, what's the prospects of this thing being continued on a grant -funded basis after 2023? MR. FARR: Yeah—so I've been in the office for 30 years. It shows up on the top here. But in the course of things, it has been a very rare incident, if any, that the State would pull back funding. MR. CHUNG: Okay, yeah. MR. FARR: So already for the next year, they've already issued us the 20 percent cut, so that we know that's what we're going take. But we have worked it and trying to be as efficient as possible, with staffing and everything, that we can make it to 2023, and whatever continues to come down should supplement us. MR. CHUNG: But you see what my concern is, right? It's going to go forward. I mean, like for example, three, four, five years from now, are we going to be expected to now— MR. FARR: Fund the position? MR. CHUNG: Yeah, and I know there's no assurances. MR. FARR: And there are a number of positions. There's my old position, that I've been covering for the last year and a half, whatever. We're trying to make do with what we can and trying to carry ourselves as much as possible. Again, we made the target date of 2023, and then on top of that is when we will begin—after this Legislative Session, we'll see what position the State is in, and the Federal Government, and then we will then plan for the next two years. Page 22 FC -1 January 5, 2021 So as far as I would say right now, for the next two years, our funding is assured regardless of what happens. We won't take 100 percent cut, but whatever else the State and the Federal Government supplements us, we will be able to continue to maintain, and part of that is because of what the County funds us now. You know, all that the County takes care for us, it alleviates our ability, or it helps our ability to put as much money back into service and leverage that. So we are fortunate that we can leverage that amount of money back into services. And so, we try to run lean as much as possible, especially now. In these times, we don't want to overburn or stretch ourselves out. We want to be able to be at the right place during this time. MR. CHUNG: Okay, and thanks for all your good work, Horace. MR. FARR: Thank you. MR. CHUNG: Thank you. CHR. KANEALI`I-KLEINFELDER: Thank you, Mr. Chung. Any questions? Kona, just remind me if you have questions or comments, please. MR. INABA: Not at this time. CHR. KANEALI`I-KLEINFELDER: Thank you, sir. Okay, Mr. Farr, thank you for being here today and for being so patient with us. MR. FARR: Thank you. CHR. KANEALI`I-KLEINFELDER: Okay, we have a motion on the floor to move Resolution 20-21 to Council. All in favor? Vote on Res. 20-21: The motion to recommend adoption of Res. 20-21 was (Approved) carried by following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder – 9. Noes: None. Absent: None. Excused: None. CHR. KANEALI`I-KLEINFELDER: Okay, can we please go to—we have Susan Kunz behind you, sir, so let's go to Resolution 23-21. Page 23 FC -1 January 5, 2021 Res. 23-21: AUTHORIZES THE OFFICE OF THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Allows for the receipt of $200,000 of Federally -derived funds, which would be used to provide housing assistance to young adults at risk of experiencing homelessness. Reference: Comm. 24 Intr. by: Mr. Kdneali`i-Kleinfelder (B/R) Motion to Approve: Ms. Kierkiewicz moved to recommend adoption of Res. 23-21. Seconded by Ms. Kimball. CHR. KANEALI`I-KLEINFELDER: Ms. Kunz, could you come up, please? Thank you for being here today. (Note: At this time, Housing Administrator Susan Kunz came forward to address the members of the Committee.) CHR. KANEALI`I-KLEINFELDER: Okay, go ahead. MS. KUNZ: Good afternoon. My name is Susan Kunz. I'm the Housing Administrator for the Office of Housing and Community Development. This resolution before you authorizes the office to go—Office of the Mayor to enter into an agreement with HUD (Housing and Urban Development) for the specific vouchers that are designated to support youth who are aging out of foster care. So this is an interesting program, because unlike where we would get an allocation of funds from HUD, we would develop a wait -list. In this particular grant, what they are asking us to do is enter into an agreement with the Department of Human Services, so we're partnering with them. They will be the ones who are referring youths to our program. The funding will allow us to support 25 youths per year for the next three years. So this allocation of $200,000 is actually the first allocation. We actually will have access to about $800,000 at the end of the three-year period. So as we are receiving these referrals from Department of Human Services, we request these funds from HUD. So it's a little bit different than the process we're used to, when we're managing these voucher programs. CHR. KANEALI`I-KLEINFELDER: Okay, thank you, Susan. MS. KUNZ: Yeah. CHR. KANEALI`I-KLEINFELDER: Any questions for the director? Yes. Page 24 FC -1 January 5, 2021 MS. KIERKIEWICZ: Thank you, Chair. Thank you, Susan, for being here. If you could just clarify. This program is about $175,000, 25 vouchers a year. You mentioned there being a total of $800,000? MS. KUNZ: Uh-huh. MS. KIERKIEWICZ: Doesn't quite add up. So are there other incidentals that are going to be purchased to support the foster youth and their housing? MS. KUNZ: Yeah. So in this allocation, you're going to see a bill coming up next, Bill 9, where $175,000 is designated to support the voucher program and $25,000 is to support administrative costs. So any time we are taking in vouchers like this, you know, there are inspectors that I have to pay for, that are going out to make sure that the housing unit is in safe and livable conditions. I have a case management staff that needs to be in place to work with the youth, make sure that income is certified, and all of the regulatory requirements that are typical to a voucher program, I still have to do. So the administrative costs will be used to pay for those types of things. MS. KIERKIEWICZ: Okay, great. And a follow-up question I had, any geographical limitations for where these vouchers can be used? MS. KUNZ: No. MS. KIERKIEWICZ: Okay. Anywhere on the island? MS. KUNZ: Yes. MS. KIERKIEWICZ: Awesome. Thank you. I'll be supporting the measure. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you, Ms. Kierkiewicz. Any further discussion? Kona? MR.INABA: A`ole. CHR. KANEALI`I-KLEINFELDER: Okay, thank you, sir. Okay, seeing no further discussion, all in favor? Page 25 FC -1 Vote on Res. 23-21: The motion to recommend adoption of Res. 23-21 was (Approved carried by following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. January 5, 2021 CHR. KANEALI`I-KLEINFELDER: Okay, let's go to Bill 9 please, Mr. Clerk. Bill 9: AMENDS ORDINANCE NO. 20-45, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30 2021 Appropriates revenues in the following Federal — Foster Youth to Independence Initiative Voucher accounts: Voucher ($175,000) and Administration ($25,000); and appropriates the same to the following Foster Youth to Independence Initiative Voucher accounts: Voucher ($175,000) and Administration ($25,000). Funds would be used to provide housing assistance to young adults at risk of experiencing homelessness. Reference: Comm. 24 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Vote on Bill 9: Ms. Kimball moved to recommend passage of Bill 9 on (Approved) first reading. Seconded by Ms. Kierkiewicz and carried by following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. CHR. KANEALI`I-KLEINFELDER: Thank you, Susan, for being here. Appreciate it. MS. KUNZ: Thank you. CHR. KANEALI`I-KLEINFELDER: Okay, Clerk, let's go back to Communication 28. I don't know, is Bill Brilhante outside? MR. HENRICKS: I don't think so. Do you want to do something else first? Page 26 FC -1 January 5, 2021 CHR. KANEALI`I-KLEINFELDER: Yep, let's move on to Communication 30. Comm. 30: REPORT OF FUND TRANSFERS AUTHORIZED: OCTOBER 16 — 31, 2020 From Controller Kay Oshiro, dated November 5, 2020. Vote on Comm. 30: Ms. Lee Loy moved to close file on Comm. 30. Seconded Filed by Ms. Kimball and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kdneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Comm. 30.1: REPORT OF FUND TRANSFERS AUTHORIZED: NOVEMBER 1 — 15, 2020 From Controller Kay Oshiro, dated November 18, 2020. Vote on Comm. 30.1: Mr. Richards moved to close file on Comm. 30.1. Filed Seconded by Ms. Kimball and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kdneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Comm. 30.2: REPORT OF FUND TRANSFERS AUTHORIZED: NOVEMBER 16 — 30, 2020 From Controller Kay Oshiro, dated December 1, 2020. Vote on Comm. 30.2: Ms. Kimball moved to close file on Comm. 30.2. Filed Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kdneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Page 27 FC -1 January 5, 2021 Comm. 31: REPORT OF CHANGE ORDERS AUTHORIZED: OCTOBER 16 — 31, 2020 From Finance Director Deanna Sako, dated November 4, 2020, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Motion to Close File: Vote on Comm. 31: Filed Ms. Kimball moved to close file on Comm. 31. Seconded by Mr. Richards. CHR. KANEALI`I-KLEINFELDER: Any discussion? I have one question about this program. Just more in general, but someone did ask me, where do you recycle propane tanks? And I saw this on the change order, but I didn't see any funds coming through. But do we have a program for recycling propane tanks? (Note: At this time, Acting Finance Director Deanna S. Sako came forward to address the members of the Committee.) MS. SAKO: We do have a gas and oil program. And so when DEM (Department of Environmental Management) is here, that would be a great question for them. CHR. KANEALI`I-KLEINFELDER: Okay. I will ask. MS. SAKO: I'm not sure exactly where that is yet. CHR. KANEALI`I-KLEINFELDER: Thank you. Appreciate it. Thank you, Deanna. Okay, any further discussion? Okay, all in favor? The motion to close file on Comm. 31 was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kdneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Comm. 31.1: REPORT OF CHANGE ORDERS AUTHORIZED: NOVEMBER 1 — 15, 2020 From Finance Director Deanna Sako, dated November 16, 2020, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Page 28 FC- I January 5, 2021 Vote on Comm. 31.1: Ms. Kimball moved to close file on Comm. 31.1. Filed Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Comm. 31.2: REPORT OF CHANGE ORDERS AUTHORIZED: NOVEMBER 16 — 30, 2020 From Finance Director Deanna Sako, dated December 3, 2020, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Vote on Comm. 31.2: Ms. Kimball moved to close file on Comm. 31.2. Filed Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Comm. 32: MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED JUNE 30 2020 From Finance Director Deanna Sako, dated November 13, 2020, transmitting the above report pursuant to Hawaii County Charter Section 6-6.3(h). Motion to Close File: Mr. Richards moved to close file on Comm. 32. Seconded by Ms. Kimball. CHR. KANEALI`I-KLEINFELDER: Any discussion? Not at this time. Deanna, I know we talked about it a little bit while we were kind of in recess. But I think next month we'll do a discussion on breaking down the Monthly Budget Status Report for the new Council Members, if that's okay with everyone? We had it planned for today, but we have much on our agenda to cover. So if everyone is agreement with that? We're just letting everyone know, okay? Okay, thank you very much. Okay, motion is on the floor, all in favor? Page 29 FC -1 January 5, 2021 Vote on Comm. 32: The motion to close file on Comm. 32 was carried by the Filed following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder – 9. Noes: None. Absent: None. Excused: None. Bill 7: AMENDS ORDINANCE NO. 20-449 AS AMENDED, RELATING TO PUBLIC IMPROVEMENTS AND FINANCING THEREOF FOR THE FISCAL YEAR JULY 1, 2020 TO JUNE 30, 2021 Adds the Public Works Kalaniana`ole Avenue Reconstruction - Private project for $425,000 to the Capital Budget. Funds for this project shall be provided from Private Contributions. Reference: Comm. 22 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Motion to Approve: Ms. Lee Loy moved to recommend passage of Bill 7 on first reading. Seconded by Mr. Richards. CHR. KANEALI`I-KLEINFELDER: I believe we have a member from DPW (Department of Public Works), or Mr. Rodenhurst is here to answer anyone's questions. Perhaps, Sue, being that this is your district, you want to go ahead with any discussion, or lead the discussion? MS. LEE LOY: You know, I believe Director Rodenhurst and Keone is here. This is actually a magic thing for the HELCO (Hawai`i Electric Light Company) piece. It is rather straight -forward. This is kind of them providing—HELLO providing their fair share to the roadwork that's happening at Kalaniana`ole. I really don't have any concerns regarding this one. CHR. KANEALI`I-KLEINFELDER: Okay. You want to add anything? That's good. Okay, Kona, any questions? MR.INABA: A`ole. CHR. KANEALI`I-KLEINFELDER: Okay, any discussion? Okay, seeing none, all in favor? Page 30 FC -1 January 5, 2021 Vote on Bill 7: The motion to recommend passage of Bill 7 on (Approved) first reading was carried by following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kdneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Bill 8: AMENDS ORDINANCE NO. 20-449 AS AMENDED, RELATING TO PUBLIC IMPROVEMENTS AND FINANCING THEREOF FOR THE FISCAL YEAR JULY 1, 2020 TO JUNE 30 2021 Adds the Public Works Kalaniana`ole Avenue Reconstruction project for $10 million to the Capital Budget. Funds for this project shall be provided from General Obligation Bonds, Capital Projects Fund — Fund Balance and/or other Sources. Reference: Comm. 23 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Motion to Approve: Ms. Lee Loy moved to recommend passage of Bill 8 on first reading. Seconded by Ms. Kimball. (Note: At this time, Mr. Ikaika Rodenhurst and Public Works Civil Engineer Keone Thompson came forward to address the members of the Committee.) CHR. KANEALI`I-KLEINFELDER: Sue, do you want to start off the discussion? MS. LEE LOY: Yeah. Thank you, Chair. Thank you. This is my district. And I do actually have a lot of questions, so Chair, if I could just have a little bit of latitude? CHR. KANEALI`I-KLEINFELDER: Go ahead. MS. LEE LOY: And thank you, Keone and Director Rodenhurst, for being here. First and foremost, it's a lot of money. MR. THOMPSON: It sure is. MS. LEE LOY: You know, I took a look at the B-52 form that's provided, and I just found it a little thin as far what the explanations were. And so, you know, I don't know if it's Director Rodenhurst or you, Mr. Thompson, but I wanted to Page 31 FC -1 January 5, 2021 bring a lot of awareness to this project. This project has been trying to get done since even before I've taken office. And so, Keone, maybe you could just provide like a thumbnail -sketch of, you know, how this project came about and some of the partnerships. Because we just approved Bill 7, which was one of the utility lines and their partnerships with some of the work that's being done in this area, So if you could—yeah, just give us a thumbnail -sketch on where we started. MR. THOMPSON: The whole project? From the beginning of the project? MS. LEE LOY: Yes, please. MR. THOMPSON: Okay. So this project started as a—to make an improvement, provide bicycle and sidewalks for this area. Connect the harbors and connect— Keaukaha to the downtown area, you know, provide access for the tour boats and stuff. We took it out to bid. I know there were some delays in the project, in the beginning to get the project going. And so I'm not—I wasn't involved in that stage, and I'm not aware of the details, but we've overcome that and we're moving forward with the project now. But the reason—and that's where we are right now. You know, we ran across some HELCO (Hawaiian Electric Light Company) fuel lines that's kind of shallow. So there were some concerns of constructing the asphalt road about that. So in order to address this concern, we decided to do a concrete pavement on top. So that's where the cost sharing of $425,000 came from for HELCO to split the costs of the improvements. So—but in order to do this, it's a big change of scope of work. We've got to do a—we're going to rebid it out, that's what we're looking at it. So that's where the appropriation comes in, the $10 million. That's not additional money for the project, but that's an avenue for where we can take the money from the existing project, put it in appropriation, and then also put this $425,000 in that account too, so we can fund the new project that we're going to bid out. And that's what this is about. MS. LEE LOY: Mr. Thompson, do you know how much this bid or this project was originally bid at? MR. THOMPSON: I believe the County section was $11 million, but the State and County section, with the change order for the wild -line and everything, was about $17 million. Page 32 FC -1 January 5, 2021 MS. LEE LOY: So it started at $11 (million), State Department of Transportation Harbors Division came in with the waterline project, and committed an additional $5 million; $6 million to— MR. THOMPSON: Okay. Yes. MS. LEE LOY: —to take it up to $17 million— MR. THOMPSON: Yeah, $17 (million). MS. LEE LOY: —of taxpayer's money, right, from the County and the State? And that was somewhere between June 2016 till somewhere around November 2017. MR. THOMPSON: Yeah. Unfortunately, yeah, I was not involved with the project at that time, so I'm not really aware of the details. But yeah, it sounds about right. MS. LEE LOY: Do you know when the project was originally bid? MR. THOMPSON: I would have to check my files on that. Yeah, I would have to check on the date and when we actually bid it out. I mean— MS. LEE LOY: Okay. So I'll share for the rest of my colleagues. A notice to proceed for this project was given on January 8, 2018, at the price tag of $17 and some change million. I called for a number of status updates for this particular project since I took office, and have just met a number of delays. In November 2018, the status report given was that the work would be completed fourth quarter of 2020. And then again a request was made for status update in November 2020, to ask when it would be done, and the information provided at that time was second quarter of 2021. MR. THOMPSON: Yes. I think I provided that date, yeah, that time. MS. LEE LOY: So now we're asking for an additional $10 million from a project that's swelled at the start of $11 million up to $18 million, we're appropriating another $10 million. My first question is, is this to supplement the $18 (million), or now is this project going to cost our taxpayers $28 million? MR. THOMPSON: I can say "no." Sothis $10 million, it's just an appropriation so we can have basically a checking account, so we can switch the money around from the current project and put it back. When we do a negative change order for the current project, then we could put the money into this account. We don't have a set amount of how much it would cost, but we do have an estimate. And right Page 33 FC -1 January 5, 2021 now the change in cost from asphalt concrete to PCC, it's basically Portland Cement Concrete, we're looking at about a little under $1 million difference in cost. And then that—well, about $850,000; and then with HELCO, who is going to be paying half of it. MS. LEE LOY: So back to my original question, is the project $18 million or $28 million? Mr. Thompson, maybe— MR. THOMPSON: It will be closer to the $18 million, but I cannot say for certain based on—we don't have the bids, because we want to bid it out that new portion of work because it was a change and scope of work. So, yeah. MS. LEE LOY: Okay. And the way I read the background report, the B-52 background report, it's $10 million from changing from asphalt to concrete. And again, it's because it's thin. MR. THOMPSON: Sure. MS. LEE LOY: And so I need to ask these questions. It's the taxpayer's money, whether it's ours at the County level, monies from DOT (Department of Transportation) transportation, harbors cost-sharing, which is the utility with HELLO, gas and water. And I'm just trying to drill down on a project that has taken more than four years with very little movement, and now I see a $10 million appropriation. I need some answers, Mr. Thompson. MR. THOMPSON: Sure. So right now, the $10 million is not the additional cost of what it would cost, above and beyond what the contract is. That's just a means—that's an avenue so we can complete the project. You know, bid it out and complete it with what's going on. MS. LEE LOY: Okay. So just to clarify, we're still at $18 million for this proj ect. MR. THOMPSON: Currently, yes. It might be a little bit more now, based on what's the bid is coming in. MS. LEE LOY: And we're estimating that—you know, we're shifting money around, right, because we're going from asphalt, that portion was in the previous contract. MR. THOMPSON: That's correct. MS. LEE LOY: The cost associated with that asphalt, right, is being kind of removed from the contract, and then we're going to take that money we had for asphalt and add a little bit more to do concrete. Page 34 FC -1 January 5, 2021 MR. THOMPSON: That's correct. MS. LEE LOY: Do we have an estimate for that amount? MR. THOMPSON: The estimate for the additional work, the change in cost was around $850,000. That was the estimate. MS. LEE LOY: So is it fair to say we're kind of moving monies around? It will go from $8.4 million to somewhere around $20 million with these adjustments. MR. THOMPSON: Hopefully, yes. I mean, we can only hope that all the bids come in low, or you know, like we're predicting. But, you know, sometimes prices come in higher than we expect it. MS. LEE LOY: Do we have a third -party review? And, Mr. Rodenhurst, maybe this is something—we've had a lot of discussion during your appointment about identifying critical pathways, you know, where the hiccups are, how we can start to implement more accountability; not only to the taxpayer's money, but making sure projects are run effectively and efficiently. So my question is, does the department have the ability to re-evaluate or assess a bid proposal that's coming in, for example, on this concrete, and kind of provide a fair evaluation that it is within a reasonable amount? MR. RODENHURST: Thank you for that question. Yes, we are—I'm working with Keone on this project. I'm getting brought up to speed on the status of it. As you've discussed, it is unfortunately a long-time project that should have been completed earlier, as on schedule it would have been. As any project, there's issues, and as Keone mentioned, he was not then and there at the origin of this project. So picking up the pieces where they were left off, that's something that I will be working with our department and making sure that in the future we can have interchangeable parts where we can have continuity, not have to go back to page one every time we have someone new come on the project. And like I said earlier too, we're going to find a way to move through this. So yes, we will be taking a look if these bids are reasonable, and meet the requirements of this new work. So we will be looking at this closely. This is important to us, as well. MS. LEE LOY: Okay. Do we have a punch list of all of the remaining issues? I've had private conversations with the other utilities. The relocation of the regulatory box, I believe, there was a need for one of our utilities to prepare and process an SMA (Special Management Area) minor because of the work that was being done. I'm a little concerned because that was on the backs of the utility, but I'm not sure if it was identified in the scope of work of the project. And so what I Page 35 FC -1 January 5, 2021 saw was a lot of hopscotch work, right? Because it was paved for drainage issues, putting in a sidewalk while they wait for the utility to move the line, relocate their box. Do we have a punch -list of what's out there? Whether it's connecting the waterline, relocation of the utility boxes, whether it's with HELCO and/or Gas Company, do we have that punch list? MR. THOMPSON: Yes, we are working on it, and we do have a punch -list of what needs to be done. I mean, for instance as we transition from one contractor to the next, we need to identify everything that's involved and needs to be completed. MS. LEE LOY: Mr. Rodenhurst, Mr. Thompson, I'm going to request a copy of that punch list along with the milestones, because what I've seen happen with this particular project is slowly by slowly it's gone off the rails. And I actually picked the description rails because we saw a project on Oahu go off the rails. And my primary purpose here is to ensure that our taxpayers are getting what they pay for. And I'm getting frustrated because all of a sudden projects that are taking well beyond the scope of services is becoming acceptable. And there's a few members on this Council right now who knows I had a heart— whole lot of a heartburn over a sign permit that took five years. Again, using this as a teaching moment, we want to help; but when we see piecemeal change orders come, and then a $10 million appropriation for a project—Mr. Thompson, how many miles is this project? MR. THOMPSON: About a mile. MS. LEE LOY: One mile, a one -mile project. Little bit engineering here, 5,280 feet is costing us $20 million, over four, which will now be five years. We need more background. And Mr. Rodenhurst, I'm hoping that this leads to some of the checks and balances within your department to hold members of the department accountable, because we've got to be held accountable every two years. These are projects that are important. I also want to see if this is possible, and I think it is, we're going from asphalt to concrete, and I understand why but the public doesn't know. They're just seeing a cost overrun. And there's actually a return on investment, from going from asphalt to concrete, because concrete is more durable. And it makes a lot of sense, from the pier to Verna's, where so many of our trucks who pick up all of our containers, the gas, all of those rigs that are driving on that road that are extremely heavy, it makes a lot of sense to go to concrete. But I don't see any checklist on the return on investment. Does it help with a paving schedule? We're going to make this investment now, but we won't have to repave that road for five, seven, maybe even ten years. Page 36 FC -1 January 5, 2021 CHR. KANEALI`I-KLEINFELDER: Ms. Lee Loy, if you could summarize. I'm going to Aaron. MS. LEE LOY: Thank you. I think those are the things that would be incredibly helpful. I'm going to urge my colleagues to go ahead and support this moving forward. But I want that punch -list before we get to Council. I think it's smart. I think it helps us make good decisions. Chair, I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Mr. Chung. MR. CHUNG: Thank you. And interesting questions and concerns. Deanna, I don't want to put you on the spot again; and if you can't answer it, that's alright. But can you give us your perspective from the Finance Department side as to what Keone was saying? And if you're not ready or prepared on this one, no problem. You know, Keone was talking about opening up an account and this and that. (Note: At this time, Acting Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: Sorry. Deanna Sako, Finance Director. One of—like Ms. Lee Loy said, this project has been ongoing for some time now. So all of our capital project appropriations have a three-year life, two additional years after the year they're appropriated in. So now, if there are savings from the current contract before they bid out the new work, that would be savings, but that appropriation has lapsed. So they need a new appropriation to put those savings in and then bid it out. And I am guessing they will need some additional money, which they will have to come in for another allotment. But this account would give them that ability to put the savings and then bid out the new work. MR. CHUNG: Okay. But from your perspective, I mean based on your knowledge though, this is not an additional $10 million? The original $18 million? MS. SAKO: Everyone is hesitant to say that because we don't know until the bids come in. But the work may not offset dollar -for -dollar. But yes, it's not going to be a new $10 million. MR. CHUNG: I see. MS. SAKO: But he does not need that place to kind of park the funding, yes. Page 37 FC -1 January 5, 2021 MR. CHUNG: Right. Yeah, right, right, right. But you guys will be watchdogs, or watch things in terms— MS. SAKO: Yes, we will be. MR. CHUNG: Thank you very much, Deanna, that helped a lot. You know, I'm just kind of putting two and two together and using my own good sense. You know, you two guys, and maybe I'm wrong, I think you guys inherited a situation. When you guys aren't saying anything, you guys are being good soldiers and everything, but I really believe you guys inherited something that was in the process of snowballing already. You guys being, you know, kind of taking the hits right now. What I would suggest, follow up on what Ms. Lee Loy asked for, and just tell us what the hell happened, yeah? Because something funny happened in this thing. We all know that, yeah. You guys—I can see from your expressions. Something very strange happened here. And it would behoove you guys to just lay everything on the line. That's what I think. So anyway, thank you. CHR. KANEALI`I-KLEINFELDER: Thank you, Mr. Chung. Mr. Richards. MR. RICHARDS: Thank you, Chair. I'm just going to echo a little bit. We've talked a lot about accountability; we've talked a lot about transparency. Using Ms. Lee Loy's numbers, $20 million for a mile is about $4,000 a foot. It's a little pricey. And the $20 million, again rough numbers, is approximately half of what it would cost to build this second access road to Waikoloa Village. Rough numbers, $40 to $50 million. So putting it context, Council Members are a bit frustrated not going forward. And I completely agree with Councilman Chung, I'm sure you guys inherited this. Ikaika, you're not been long enough to create this. But let's clean it up, put it on the table, go forward, because we've got a lot of stuff to get done. So again putting it in context, I could easily spend that $20 million as we build my new road. So with that, I yield. CHR. KANEALI`I-KLEINFELDER: Thank you, Mr. Richards. Ms. Kimball? MS. KIMBALL: Just a quick question on the timing of this, I'm just curious. Thanks for all the background by the way, this is, you know, old news. Why is it required to do this appropriation now, prior to getting the bid? And when do we expect to the bid to come in on this change? MR. THOMPSON: We have to have the means to fund the project, and before you can take out the bid you have to show that you have the money available. MS. KIMBALL: When do you expect the bid once this appropriation happens? Page 38 FC -1 January 5, 2021 MR. THOMPSON: Well, we're looking at maybe taking out the bid in the next month or so. And then usually to award—it takes anywhere four to six months to award a project. We're just going through all the processes now. And then we're hoping, well, completion of the project will be about a year after that. CHR. KANEALI`I-KLEINFELDER: Okay, Kona, any discussion? MR. INABA: This is Holeka. I just want to clarify, because we keep going 10 and then talking 20. It's just 10, right, million? Am I correct? MR. THOMPSON: The appropriation is for $10 million. MR. INABA: Yeah, it's not an additional 10, right? Because I heard it—I heard Deanna, and I understood that it's just—it lapsed so we're putting it back in for 10, although it was initially eight, I believe, Council Member Lee Loy said. So it's just 10, putting it back in since it lapsed. Is that correct? MR. THOMPSON: We don't have any other appropriation, so we're making an appropriation of $10 million right now. That's correct. MR. INABA: Okay, thank you. MR. THOMPSON: Yeah. MR. INABA: That's it. CHR. KANEALI`I-KLEINFELDER: Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Chair. I just have one final question. About a month ago, a contractor inadvertently hit a sewer line, which put 28 million gallons of raw sewage into Ice Pond. Who's paying for that? Is there any penalties associated with that, and will we be seeing some other negative effects that we're going to have to deal with later on as it relates to what is very unfortunate? MR. THOMPSON: So, yes. So the contractor hit a sewer main when they were doing the work on Banyan Way. They were excavating for a streetlight pole. They had reached out to Sewer to identify where the sewer mains were, and apparently that was missed. So when they were excavating, they hit it. They actually moved the streetlight pole to that location because there supposedly no conflicts there, but unfortunately they hit it. So right now they're in the process of trying to fix it. We tried to fix it one time already; it didn't work. They couldn't drain the lines. So now they're going to try again and fix it, but a different approach that Sewer is telling us to do Page 39 FC -1 January 5, 2021 As to the fine, I heard that DOH (Department of Health), while working with Sewer, they've assessed the $25,000 fine to the contractor. That's what I've heard, but I'm not sure where that's at right now. That's what I just heard today. So we're going to—I'm going to check into that and see where that's at. MS. LEE LOY: Thank you. Could you please get us that information? I think it's going to be incredibly helpful for me, my colleagues, the community that it's impacting, and kind of tie this up when we get up to Council. Chair, I yield. CHR. KANEALI`I-KLEINFELDER: Thank you, Ms. Lee Loy. Okay, any other questions? Comments? Okay. I guess my comment would be it would be nice to have that much funding in my own district. For as much as I understand the financial questions and I want to break this down, many of our districts don't see this kind of funding. So, you know, I appreciate what you guys are doing, and keep it up. Yeah, you guys should work it out for you. MR. RODENHURST: Duly noted. Thank you. CHR. KANEALI`I-KLEINFELDER: Yeah. Okay, any further discussion? Okay, seeing none, all in favor? Vote on Bill 8: The motion to recommend passage of Bill 8 on (Approved) first reading was carried by following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder – 9. Noes: None. Absent: None. Excused: None. CHR. KANEALI`I-KLEINFELDER: Okay, I think that brings—oh no, we have one more communication from Mr. Brilhante. Thank you for being here, sir. Clerk, Communication 28. Return to Order The Chair directed the Committee to return to the order of business. of Business: (Note: Items in this category were taken up previously, out of order.) Comm. 28: FIRST QUARTER REALLOCATION REPORT: JULY – SEPTEMBER 2020 From Human Resources Director William V. Brilhante, Jr., dated November 24, 2020. Page 40 FC -1 January 5, 2021 Motion to Close File: Ms. Lee Loy moved to close file on Comm. 28. Seconded by Mr. Richards. (Note: At this time, Human Resources William V. Brilhante, Jr. came forward to address the members of the Committee.) CHR. KANEALI `I-KLEINFELDER: Mr. Brilhante is here in the Hilo Chambers, if anyone has questions? You want to go ahead, Mr. Brilhante, and just break this down for us a little bit, and then we'll go to questions? MR. BRILHANTE: Good afternoon. William Brilhante, Human Resources Director. Yeah, you know, every now and then, and for the new members I'll be happy to explain this reallocation, allocation report. Basically what happens is— you know, we had this discussion earlier today about, you know, minimum qualifications for government jobs, especially County of Hawaii jobs. There are some jobs that are so unique to government. A police officer, a fire fighter, motor vehicle, you know, registration clerk or something to that effect, that the only way an employee can gain experience, gain the necessary require—experience is by actually performing the job. So in order for us to bridge that gap, you know, to make these positions recruitable, we reallocate. Oftentimes we'll have to reallocate a position down into the lowest, you know, initial stage. For Fire, it's recruits; you know, for Police, same thing, to the lowest form, and then we hire. We allow the employee to pass probation or be evaluated, and if they're deemed satisfactory, then we progress them forward and we slowly reallocate the position back up to its original position. You know, the second piece to that is, again for Fire and Police, when we have a vacant position and we're going to recruit new firefighter recruits, we take a—we need to have a position. Each employee that works for the County has to be assigned a specific position. So we take that firefighter position from a previous firefighter who may be retired, or they got promoted or, you know, the position was created or the like, we take that position number, we reallocate that firefighter position down to a recruit position, And you see some of that in this chart here, that's the ones where you have the firefighter recruits—you know, firefighter position to a recruit. They fill the position, they pass their recruit training, and then after a year that position goes back up to a firefighter. So you have two movements. You have the first movement, where you're taking the permanent firefighter position down. You make it into a recruit, the recruit, you know, gets hired, passes recruit class, and then we will reallocate it back up to a firefighter. So that's what these numbers indicate. So you'll see primarily Police, Fire, and then the real unique positions, motor vehicle clerk and real property appraisal clerk. You know, those are, you know, something that—you know, there's no Page 41 FC -1 January 5, 2021 you go out in the general public, you don't have a real property appraiser, you know, tax appraisers walking around. So that's how we are able to bridge that gap. Happy to answer any questions you may have. CHR. KANEALI`I-KLEINFELDER: Council, any discussion? Okay. My question then, Mr. Brilhante, so the ones labeled as permanent, on page seven? That would be different, correct? You're changing a position completely to another type of position? So there's not a temporary and there's not a reinstatement, these are permanent? MR. BRILHANTE: That's correct. It's a permanent reallocation upward. CHR. KANEALI`I-KLEINFELDER: Okay. Okay, thank you for clarifying. Okay, any discussion? Okay, all in favor? Vote on Comm. 28: The motion to close file on Comm. 28 was carried by the Filed following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kdneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. CHR. KANEALI`I-KLEINFELDER: Thank you, Mr. Brilhante, for being here, appreciate it. Thank you for coming back. MR. BRILHANTE: You're welcome. No problem. CHR. KANEALI`I-KLEINFELDER: Thank you. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. (Note: Items in this category was taken up previously, out of order.) BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. (Note: Items in this category were taken up previously, out of order.) CHR. KANEALI`I-KLEINFELDER: And can I have a motion to adjourn, please? Page 42 FC -1 V MUM! MENT: Approved: January 5, 2021 There being no further business, at 4:12 p.m. Ms. Lee Loy moved to adjourn the meeting. Seconded by Mr. Richards and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. CHR. KANEALI`I-KLEINFELDER: I believe we have none oppose of adjourning this meeting, and I believe that will be nine in favor. MR. BROWN: Thank you, Chair. CHR. KANEALI`I-KLEINFELDER: Thank you, Mr. Clerk. Mr. Kdneali `i- Kleinfelder ,Chair Finance Committee MK/na 1 (.0, Vf (Date) Page 43