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HomeMy WebLinkAboutMIN FC 2019/04/16/17/18 2018-2020 (Budget and Program Reviews) Special Meeting of the Committee on Finance Stn Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii April 16, 2019 CALL TO The special meeting of the Committee on Finance was called to order at ORDER: 9:04 a.m., in the Council Chambers, Hilo, by Ms. Maile Medeiros David, Chair. ROLL CALL: Present: Ms. Maile Medeiros David, Chair Mr. Herbert M. "Tim" Richards, III, Vice Chair Mr. Aaron S. Y. Chung, Member Ms. Karen Eoff, Member Mr. Matt Kaneali`i-Kleinfelder, Member Ms. Ashley L. Kierkiewicz, Member Ms. Susan L. K. Lee Loy, Member Ms. Valerie T. Poindexter, Member Ms. Rebecca Villegas, 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 speak and came forward when called by the Chair: Debra Smith: Bill 30 (Comm. 117), comment. Stefen Buchta: Bill 30 (Comm. 117); and Bill 31 (Comm. 118), comment. Jaerick Medeiros Garcia: Bill 30 (Comm. 117), comment. Dwight J. Vicente: Bill 30 (Comm. 117), comment. Smiley Burrows: Bill 30 (Comm. 117), comment. Bernadette Sabath: Bill 30 (Comm. 117), comment. Abolghassem Abraham Sadegh: Bill 30 (Comm. 117); and Bill 31 (Comm. 118), comment. FC-8 April 16,2019 CHR. DAVID: I believe that closes our public testimony segment. RECOGNITION CHR. DAVID: Before we move forward, I really would like to recognize two OF FOREIGN people in our audience who are here. Her name is Muftuna, and her sponsor is EXCHANGE Allison Coker. Stand up, please. Ms. Muftuna is an exchange student at STUDENT: Konawaena High School, and I understand she's from Turkmenistan. She, I'm told, speaks six languages. She made the trip here because she wanted to observe our process and how we conduct business here. So, welcome. You may come up front and sit if you would like. Okay? And so, yes, welcome. Awesome. Thank you. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. CHR. DAVID: Okay, Mr. Clerk, I think we're ready. Please, Bill 30. Bill 30: ESTABLISHES AN OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR JULY 1, 2019, TO JUNE 30, 2020 From Mayor Harry Kim, dated March 1, 2019, transmitting for consideration the proposed Operating Budget for the County of Hawaii for the Fiscal Year ending June 30, 2020. This balanced budget includes estimated revenues and appropriations of$573,538,123; which represents a proposed 10.7 percent increase compared to the 2018-2019 fiscal year Operating Budget. Reference: Comm. 117 Intr. by: Ms. David (B/R) and Comm. 117.1: From Finance Director Deanna S. Sako, dated March 1, 2019, transmitting reports entitled, Departmental& Agencies'Six Month Progress Report on Program Objectives for Fiscal Year 2018-2019 and Final Status Report on Program Objectives for Fiscal Year 2017-2018. Bill 31: RELATES TO PUBLIC IMPROVEMENTS AND FINANCING THEREOF FOR THE FISCAL YEAR JULY 1, 2019, TO JUNE 30, 2020 From Mayor Harry Kim, dated March 1, 2019, transmitting the proposed Capital Budget for FY 2019-2020, and the Capital Improvements Program for the next six years from Fiscal Year 2019-2020 to 2024-2025,which includes 39 projects requiring a total appropriation of$159,690,000. Approximately $99.1 million are intended to be funded in whole or part by bonds, $56.5 million to be funded by the State Revolving Loan Fund or State Capital Improvement Projects, $3.5 million to be funded by federal funds, and $590,000 to be funded by Fair Share Contributions. Reference: Comm. 118 Page 2 FC-8 April 16,2019 Intr. by: Ms. David (B/R) CHR. DAVID: Thank you, Mr. Clerk. Please, may I have a motion to approve Bill 30 and all related communications? Motion to Approve: Ms. Poindexter moved to recommend passage of Bill 30 on first reading. Seconded by Ms. Eoff. (Note: The vote on Bill 30 will be taken at the end of the three-day session.) CHR. DAVID: Thank you. May I have a motion,please, to approve Bill No. 31, the proposed capital budget? Motion to Approve: Ms. Poindexter moved to recommend passage of Bill 31 on first reading. Seconded by Mr. Richards. (Note: The vote on Bill 31 will be taken at the end of the three-day session.) CHR. DAVID: Right now, Council Members, we are going to start with the departmental reviews. DEPARTMENTAL The Chair directed the Committee to proceed to the next item on the agenda, BUDGET AND Departmental Budget and Program Reviews. PROGRAM REVIEWS: (1) Mayor—Overview of the Operating and Capital Budgets and Programs: (Note: At this time, Mayor Harry Kim came forward to address the members of the Committee.) CHR. DAVID: Welcome, Mr. Mayor. Go ahead whenever you're ready. MAYOR KIM: Good morning. CHR. DAVID: Good morning. MAYOR KIM: Thank you very much for the opportunity to present this budget. We had a department head meeting this morning just to review what was going to happen this morning and from here on after in regards to the budget we submitted to you and your responsibilities and authority in responding to that proposal. A brief background was given in regards to the past three years with all that. This is the third budget we submitted to the County Council. And truthfully, for myself in the realization of time, my mind is still back in the beginning of the eruption. It's hard to imagine that was many months ago. Page 3 FC-8 April 16,2019 In regards to the department heads and preparing a presentation to you, the following was stated, a brief background on the first budget we submitted to you upon taking this office job. Several reviews were made by the Finance Director, the Finance Department, on where we were. Because, as you know, you come in on December, and the budget process begins the day you come in. And realizing that all the news that we got from the Finance Department was a negative one in regards to finances. Departments were instructed in regards to "no growth," instructed"cut," instructed "cut again." Then, the harsh decision of, "If you cut any more now, you will cut into services, therefore manpower." The decision was made that we will do the very unpleasant thing of submitting to the County Council at that time the request to increase the property tax. As you know, it was an across-the-board type of increase to raise a few million dollars to balance the budget rather than cut more services. That included the property tax rates with the Council approving it with adjustments. And all it was, was to raise a few million dollars to balance our budget. We had very little increase of any kind in regards to personnel. In the second year, the budget was a little better in regards to shortages. No increase was made in regards to property tax that time. Very little increase in regards to any kind of services per department. And now comes the third year, which I think was possibly the hardest, maybe not the hardest compared to the first year because it included property tax. But in regards to you and where we were, the Council gave the approval in regards to proceeding with the GET (General Excise Tax)tax, which we're very grateful for because we know that was not a very easy thing to do. And the second thing that you had to do of all the things besides the GET would be the fuel tax, and that was right after the GET, as you know. And there was an increase that was badly needed. It was stated that you had the difficult decision of another fuel tax increase over the GET, but that was the first time in 30 years. It was a whole "catch-up" game. With all that, I think it's almost pleasant to be here before you today in regards to this year's proposal, because of the steps taken by the County Council as far as unpleasant decisions and help at the legislative level, especially of the GET. Each department was told to present to you, as openly as possible, their budget and to justify their budget to you for review and adjustment if necessary. I need the Council to understand our process and will let the departments take it. This morning it was emphasized to them that I will tell the Council that each department is given the responsibility to submit to the Administration and justify their needs for this coming budget year. It is not the Administration that tells the departments what their priorities are and what their needs are. They know their Page 4 FC-8 April 16,2019 needs better than I do. And that was done. So, each department will justify to you why those increases were made and what they are for. Hopefully this budget year we will even have the possibility, it just depends on the economy so much, you know, on the supplementary budget, if there is one. But I think, at the very minimum, what is being presented to you is what will be for the next fiscal year. We understand your authority and responsibility of reviewing our proposal. Ours is a proposal to you. So, thank you very much for your work. CHR. DAVID: Thank you. Council Members, do you have any questions at this point? No? Mahalo, Mayor, for coming. MAYOR KIM: Thank you. CHR. DAVID: Now, I'd like to call up the Department of Finance. Ms. Sako, go ahead. (2) Finance Department and(3) Miscellaneous (debt service, benefits, etc.) (Note: At this time, Finance Director Deanna Sako and Deputy Director Steven Hunt came forward to address the members of the Committee.) CHR. DAVID: Director Sako, if you could introduce your members with you. Thank you. MS. SAKO: Good morning. CHR. DAVID: Good morning. MS. SAKO: Deanna Sako, Director of Finance, and with me is our Deputy Director Steve Hunt. And we have our division heads behind us who could be here today. Kay Oshiro leads our Accounts Division; she was not able to make it. We have Ted Schrey in Budget; Sebastian Calaway, our Purchasing Agent; Hamana Ventura in Property Management; Lisa Miura and Keita Jo, our Administrator and Assistant Administrator for Real Property Tax; Chris Nakano, our Treasurer; Naomi O'Dellactually, did she make it? Okay. She frequently has to be in court, so I wasn't positive—with Vehicle Registration and Licensing Division. And Daniel Chun with Risk Management. CHR. DAVID: Welcome, everybody. MS. SAKO: So, yeah, we're here to answer any questions you have. Our Finance budget really didn't change much from last year. It's pretty much the same total,just a few dollars larger for a few pay increases and a couple of other things. But the budget, as a whole, did change. And one of the topics we're Page 5 FC-8 April 16,2019 covering right now also is the Miscellaneous section. So, I wanted to walk through our short presentation. (Note: At this time, Ms. Sako provided a PowerPoint presentation to the members of the Committee. For viewing of the presentation, please see the DVD copy of the meeting proceedings on file in the Clerk's Office or navigate to the Council's video archives online in the County's webpages at www.hawaiicounty.gov. A hard copy of the presentation is made a part of the record, see Comm. 117.9.) MS. SAKO: So that's the end of our short presentation, but we're happy to answer any questions you might have. CHR. DAVID: Thank you, Director. Council Members, questions for Director Sako and Finance? Go ahead, Mr. Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Good morning, Finance. How are you? MS. SAKO: Good morning. MR. KANEALI`I-KLEINFELDER: My question is, what happened in 2011 that caused our employee overall costs to go up by 300 percent in the last nine years? Just for my information. MS. SAKO: There's a variety of things that happened. Some of it is just the totals—let me go back up to that slide. MR. KANEALI`I-KLEINFELDER: That's an interesting slide. Thank you. For 2011, we had a four percent drop, and then it has just continued to rise since then. MS. SAKO: Yeah, so, in basically 2011, we were still paying 100 percent of the ARC (Annual Required Contribution). In fiscal year 12 and 13 is when basically we had to deal with, other than the recession, a lot of it caught up with us. So, at that time, GASB 45 (Governmental Accounting Standards Board) was not, you know, we didn't have to make those payments. It wasn't mandated yet by HRS (Hawai`i Revised Statutes). The Legislature hadn't set that. So, it's the same thing as OPEB, or Other Post-Employment Benefits. And it's the medical insurance for the retirees, basically. MR. HUNT: Just to clarify too, ARC is the Annual Required Contribution, and it's actually two parts. One is the pay-as-you-go part, which the County has always paid. The other is the catch-up. And the catch-up is what became mandated, and it was staged in over a period of time and that was starting at 20 percent, 40 percent, bringing us up to 100 percent. So, we're now paying both the pay-as-you-go to make sure that there's adequate funding for current employees, but also addressing the unfunded liability of those retirees. Page 6 FC-8 April 16,2019 MS. SAKO: But we still had options back in fiscal year 2012 and 2013 when we had to deal with the recession. And so, we chose not to make that additional or catch-up payment. Like you said, we still paid the required contribution for the pay-as-you-go portion. But fiscal year 15 is when Act 268 kicked in, and we were mandated to pay the additional catch-up portion. And it was phased in 20 percent the first year, then 40, 60, 80, and 100—so that now in fiscal year 2019, the current year we're in, it was the first year we are mandated to pay that 100 percent of the catch-up portion. And there's kind of almost like a"no going back now"because it is in the law that we have to do that. MR. KANEALI`I-KLEINFELDER: Thank you. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. Good morning, Deanna. MS. SAKO: Good morning. MS. KIERKIEWICZ: Good morning, Finance team. Thank you for your hard work on this. Do we as a County have a strategic plan? A vision? Not looking for a mission statement from the Charter. I'm looking for what's the vision for the Big Island 5, 10, 20 years from now. MS. SAKO: I'm not sure we have one. MS. KIERKIEWICZ: Okay. MS. SAKO: I mean written, anyway. MS. KIERKIEWICZ: So, I just wonder what guides the development of our budget if we don't have a vision for the future. And I wonder if we can start to position the way we do business by budgeting for outcomes. If we identify where we want to, I feel we can better align the services that all of the departments do to achieve those outcomes. MS. SAKO: So, each Administration obviously might have a different perspective on the budget, and that's kind of what leads where the Administration's budget comes from. But in addition, each department does have their goals and objectives, which some of them I don't know if you would call it the same version of outcomes, but they do have goals and things they want to meet. And that's the significant part. I left mine back on the chair—I got tired of carrying it around but the program budget that was presented to you does have a section for each department with a lot of their criteria and metrics that they want to meet. Page 7 FC-8 April 16,2019 MS. KIERKIEWICZ: Wouldn't you agree, though, that some departments have shared goals and objectives? And rather than doing something twice, if we start to budget for outcomes, we can have them work in better collaboration, thus creating more lean government and efficiencies. Can you elaborate on how we could possibly achieve that? I mean, do departments talk often on how they can better work together, and what are we as a County doing to sort of encourage that collaboration? MS. SAKO: So, departments do talk. They work together on projects. I think it depends on what, let's see, what kind of problem maybe is taking place at the time. I think they do work collaboratively. Are there areas they could share services additionally? There may be. We've tried in the past. Sometimes, those have gotten held up with union issues. So, it's not to say that people haven't tried, I think. But I think we can look at different ways to do that. But I think this Administration, the department heads probably do work together more closely than at other times. But each one also has their own projects that they're focused on. MS. KIERKIEWICZ: Is your team looking at various creative financing resources, public-private partnerships beyond what we currently do? I mean, I think about our Comprehensive Economic Development Strategy in our General Plan. I think those are visioning documents, but I think there needs to be one overall plan that aligns all of those resources. But clearly, we certainly don't want to just increase taxes to pay for things. What can we do to start incentivizing the private sector to invest in some of the programs or services that we will all benefit from? MS. SAKO: So, the public-private partnerships are definitely important, and I think they're one of the new things up and coming. But at the same time, we have to be cautious as to how we work together because it's still the public's money. So, with the public or the private partnerships investing in the government, that works out well. We have to be cautious that then those same government facilities don't get used for private purposes, especially if they're bond funded. So, we continue to work with bond counsel and our attorneys to make sure we don't run afoul of any of those laws. But we do have people, attorneys looking at those type of things to see what would work in the future. MS. KIERKIEWICZ: Is there anything in particular right now, specific projects that you can share with us, that's being investigated right now? MS. SAKO: There have been different proposals made to us, but the rate of return was definitely too generous maybe on the private side. What they wanted was something we couldn't afford. We could do it cheaper using our General Obligation Bond borrowing rate than what they intended to make off of the government. Page 8 FC-8 April 16,2019 MS. KIERKIEWICZ: Okay, switching gears here. How do you think we can make our budget more understandable to the average person? Is there a way where we canI mean, it's very transparent. You can go through Laserfiche and access all of these documents. But whether or not you have the time to thumb through all of the pages and make sense of all the numbers, that remains to be seen. How can we present this information in a much more layman's manner? That way, the community can track where the budget is, where all of the money is going, and how we are using those funds to achieve the outcomes that we desire. MS. SAKO: So, maybe I'm not following the question. There's definitely a lot of summaries in the front of the budget ordinance trying to make it simpler for everyone to see what goes by fund to each department and each type of expenditure. MS. KIERKIEWICZ: Is there any way that we can work with IT (Information Technology) to identify where exactly we are right now at this point in time with the budget? With all the various funds and expenditures that we have, I would like to be able to go online and see where we are. Similar to, like, the pie chart that you presented me, but you know, if I'm three months into the budget, I want to see where we are with our spending and track all of that. MS. SAKO: So, we do have the Monthly Budget Status Report, which does show that. If you're asking for that to be more MS. KIERKIEWICZ: It's a list of numbers, but it's not— MS. otMS. SAKO: Pictorial—is that what you're asking? MS. KIERKIEWICZ: Yes, and something that the public is able to access. Because, I think, if you've heard over the last few months, we have a lot of members of the community coming in wanting transparency. And so, I just feel this is a way for us to really show them where all of the dollars are going in a very easy-to-understand manner. MS. SAKO: We can look at that. MS. KIERKIEWICZ: I mean, we're all one team. I'm not trying to tell you how to do your job, but I certainly feel that if we talk about how we can better serve the public together, I mean, this is going to be a win-win for all. MS. SAKO: Yes, pie charts. I heard. MS. KIERKIEWICZ: Okay, that's it for now. Thank you, Chair. Page 9 FC-8 April 16,2019 CHR. DAVID: Thank you, Ms. Kierkiewicz. Anyone else? Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Chair. Thank you, Deanna, for being here. Ms. Kierkiewicz is right in line with the questioning that I had, because I'm looking at this final fiscal year and the total employee fringe. We're getting to what appears to be a very unsustainable model. And so, my question is in line with what Ms. Kierkiewicz is asking, is we need to start shifting to a better model. How do we do that? I have some ideas. I think my biggest challenge is this is my third year getting the budget, and it's coming to us in the exact same manner. So, we end up back at status quo. And so, when we talk about performance measurables, deliverables, output versus outcome, and maybe it's not for this year—which is why I wanted an ad hoc committeeI think we need to start framing the questions back to your departments about delivering us a budget that demonstrates the difference between an output and an outcome. Because, then we can help craft a budget that truly services the public. So, I did have a similar question and maybe you did answer it, but I do want to ask how does your budget or this overall County budget create collaboration across other departments to have more government effectiveness and efficiency? I think Ms. Kierkiewicz asked that question. So going forward and maybe pinging all the other departments, this is the type of questioning that will come from this end of the dais. Again, she also asked who are you partnering with to bridge the gaps and leverage resources. Again, pinging the departments. I hope you folks are listening; this is the questioning that's going to come from this side of the dais. But more importantly, I want to hear how their budget demonstrates the framework for meeting the mission, because that's where they're at. They have mission statements and then they give us a budget. So, I want to hear how the budget meets that mission and delivers services to the public. So, really, there wasn't a real big question in there just`cause Ashley asked it. But, you know, setting the tempo for all the departments coming forward, that's what I'm going to need to hear. Thank you, I yield. CHR. DAVID: Thank you, Ms. Lee Loy. Mr. Chung, go ahead—Chair Chung, I'm sorry. MR. CHUNG: Good morning. MS. SAKO: Good morning. Page 10 FC-8 April 16,2019 MR. CHUNG: I think it's somewhat good planning on the part of Ms. David that she put you guys right after the Mayor because a lot of his presentation relates to what you guys do, right? MS. SAKO: Right. MR. CHUNG: So, I mean,just for the public's sake, you know that$60 million which we hope to get approved today, it's not factored into the budget that we're looking at right now, right? MS. SAKO: No, it's not. MR. CHUNG: Yeah. So, it's going to come in later on. MS. SAKO: Right. MR. CHUNG: So, what do you guys plan to do? I mean, I know it's been the subject of a lot of talk over the last few months, but generally speaking, where are you going to pocket these monies? MS. SAKO: So, the $20 million was, as you might recall from the ordinance, it's in the General Fund in an overall account. So, as the plan materializes, basically when they get the recovery plan back, they get the risk assessment back and all of these pieces, that they can better fine-tune what they want to use the different pieces for. MR. CHUNG: Okay. Then, they'll be appropriated in different places. MS. SAKO: Yes. MR. CHUNG: Okay. And we don't have to worry about the $40 million. MS. SAKO: Yeah, because that's just the match for the permanent work. MR. CHUNG: Okay, good. And then, let's look at this pie chart. General Fund Expenditures. You talked about the Mass Transit, only grants. Why is it like that? Educate me. MS. SAKO: In the General FundI think I totally messed this up but in the General Fund, so Mass Transit is basically now split primarily between General Excise Tax Fund, and they still have some money in the Highway Fund. But we didn't think it was appropriate to put the Mass Transit grants in the Excise Tax Fund or the Highway Fund,just because those have very specific purposes. Primarily, the General Excise Tax Fund, we want to be able to for the public to know that it's just the General Excise Tax money and where it's being spent. Page 11 FC-8 April 16,2019 MR. CHUNG: Okay. So, wouldn't it have been more useful to also provide a listing of the different funds? And the reason that I ask that, it's no big deal but just for the public's information, we increased the GET and ostensibly one of the main reasons for that was to beef up the Mass Transit system, right? MS. SAKO: Yeah. MR. CHUNG: So, at least if there was something here that could at least demonstrate how much that has increased—well, it wouldn't be up to you guys to explain what it's going to be used for. It would certainly be Brenda's responsibility. But at least some kind of graphic that would show that, instead of just a .8 percent portion of a pie, only grants. MS. SAKO: Right. Just from the General Fund portion, right. MR. CHUNG: Yeah, okay. I mean, that's just a suggestion. And this other thing about the you had projected something out to 2021 on something, or 2022. From 2017-2022, total increase debt service, $10 million. But that is basically from 2017 MS. SAKO: All the way to 2022, yeah. MR. CHUNG: Okay. So, we're anticipating a bond float? MS. SAKO: More than likely in the next year or so, based on expenditures. So right now, some of the projects going on are all the Parks and Rec's (Recreation's)projects as well as a lot of sewer projects, landfill closures. So, this also includes the SRF (State Revolving Fund) loans as well. MR. CHUNG: Okay. More or less, how much can we go up to safely? MS. SAKO: Well, right now when we're doing the debt service projections, we're actually projecting based on what's already been approved and what's going to the rate it's being expended. Because, we borrow as we need it, not right when it's authorized. So, like, the Prosecuting Attorney's building's already been authorized and is in the midst of construction. So, as we need funding to borrow, we'll go out for that. MR. CHUNG: Okay. Maybe if you guys could also engage the Council in this because, you know, I mean, it can't only be an Administration-driven initiative. MS. SAKO: Yeah. So,just to clarify, yes, if we were to go out and ask for additional bond authorization, definitely we'll engage the Council. We're talking about the bond authorizations that already got approved that we might actually have to issue Page 12 FC-8 April 16,2019 MR. CHUNG: Well, we're talking about a newI'm talking about a MS. SAKO: Yes. So, for that definitely we can. MR. CHUNG: New bond issuance. MS. SAKO: Yeah. MR. CHUNG: I know Ms. Eoff has expressed some desire to have the third phase of Ane K. (Keohokalole), right? And maybe that can be, like, a matching type of situation. Mr. Richards has his Waikoloa intersection, and other members of this body might have some of those projects as well that would really help out their communities. I think for the first time, and thank you very much, all of you guys and particularly Finance, for providing us your supplemental budget requests. Just for everyone's information, these supplemental budget requests are things that are submitted to the Administration as part of their budget development process. We've never actually had these bits of information, but it's really instructive and it gets to what Ms. Lee Loy was talking about, you know, moving forward. It certainly doesn't allow us to have all of the information that we would like to look into the future and try to move our budget and our County in a forward manner, but at least it gives us some ideas as to what each of the departments would like over and above its status-quo instructions. So, I just wanted to ask you guys a few questions, only on two things. This new cashiering system, what is that? I mean, is it something that's going ? MS. SAKO: So, we have one right now. And what happens is that it's reaching its end of life, and it's no longer serviced by the vendor. So, we need a cashiering system basically, that allows us to record all of our cash receipts and then submit it into our accounting system. So right now it's still a manual process we do with treasury receipts that's entered into the current system, which then uploads into our accounting system but as receipts are entered into the system. But because the vendor is no longer going to support that software, we're going to have to get a different software to be able to do that. MR. CHUNG: And is this something that could greatly improve the efficiency of your operations? MS. SAKO: Yes. We believe there's been a lot of newer and increased efficiency since the last software was bought in 2003. MR. CHUNG: Oh, that's a long time. Yeah, okay. And this other one, five new VRL (Vehicle Registration and Licensing Division) hybrid clerks, and then you prefaced it by saying something about saying, "public facing offices within the Page 13 FC-8 April 16,2019 County and the existing staff have simply not been able to keep pace with the demands placed upon them," and then you have "disgruntled customers." And I think we've all seen MS. SAKO: I think you all have called us with disgruntled customer stories, yes. MR. CHUNG: So how, I mean, could this greatly improve that situation too? MS. SAKO: It definitely would. We are in one of the highest years of licenses. Everybody has to renew every eight years. It doesn't mean they are evenly spaced out over that eight-year period. But we do have a lot of licenses. We are in the peak year. But at the same time, as you all know, the requirements to get your driver's license has increased greatly. The REAL ID Act has made it very cumbersome for some people. So, it just takes longer and the process as well. So, we're hopeful that additional staff would make it better. One of the things we plan for or sometimes don't plan for is all the vacation and leaves people will take, either planned or unplanned. And so, that's really where we kind of fall behind. It's extremely hard also, to keep the Kona office fully staffed. We compete heavily with the hotels. So, that would definitely be an area that would help. MR. CHUNG: Last question. We increased the GET another quarter percent, right? MS. SAKO: Yes, we did. MR. CHUNG: Was that factored into this budget? MS. SAKO: No, it hadn't happened yet. So, that will be coming in with the May budget. MR. CHUNG: Okay. Conceivably, depending on how far we want to stretch the use of those funds, because they have to be for transportation-related matters, right? MS. SAKO: Correct. MR. CHUNG: I don't think the Legislature MS. SAKO: It hasn't. MR. CHUNG: It hasn't yet. MS. SAKO: We believe it's in conference, yeah. Page 14 FC-8 April 16,2019 MR. CHUNG: Yeah, okay, well, we're hopeful but if they don't give us that flexibility, we could use some of those monies for these types of matters, right? Transportation? MS. SAKO: We have been investigating that, yes. MR. CHUNG: Okay. All right. Thank you. CHR. DAVID: Thank you, Chair Chung. Mr. Richards, go ahead. MR. RICHARDS: Thank you, Chair. Thanks, Deanna. I think the tone you know, some of the questioning coming forward, and I think it is great that you guys are coming right after the Mayor to deliver the talk story. Springboarding off of what Chair Chung has said, we're expecting the May budget, which is going to be some changes coming forward. I too, as you well know, have pressed hard for an ad hoc committee because of the stutter steps that we go through with this budgeting process. And we keep having to try and plug things together individually rather than collectively, which I think would be far better going forward. Looking at the by the way, I do appreciate getting the ERS (Employee Retirement System) information to us. It's also in your PowerPoint. Looking at rough numbers, the percentage-wise of it concerning the total budget is creeping up, and I understand the reasons why that's happening. I guess it comes back to, you heard me say this last year, the silo that we lock ourselves into and looking for ways of becoming more efficient. Because that's the complaints coming out of my district and what's become—but looking for more efficiency and not having redundancy of efforts. And I'm struggling right now because I don't know how we are going to get there under this current budget process. I think there are things that we can do better, and I appreciate the fact that the departments do have conversations. But the proposed budget at$573 (million) and change is a 25 percent growth over when I first took office, and that bothers me that we're not being more critical of the process. And so, as we go through this, I'm not going to go down to the line item right now. I don't think that serves anybody's purpose. I've had my meetings with probably half of the departments so far. What I'm looking for is a way to have better conversations and thereby find those efficiencies that we keep talking about but we don't seem to be actually having the right conversations. I appreciate Ms. Kierkiewicz's initiative to go for the ad hoc, but the problem is we're doing the same thing again. That's probably more of a comment than a question. But we're not seeking those synergies. And if we can save money, that means we can spend more money in areas that we need it. And so, I appreciate the fact of, what'd you say, a 2003 software package looking to change? Great. Page 15 FC-8 April 16,2019 But there's other areas, and I've said this before, our payroll process is still done by paper. Why? Why don't we change? So, anyway, I'm going to leave that at this. I'm going to listen to a lot of conversations and then I'll have lots of questions. So, at this point, I yield. CHR. DAVID: Thank you, Mr. Richards. Ms. Eoff, go ahead. MS. EOFF: Thank you. Just a couple of observations and questions. Trying to increase our revenue and the idea of public-private partnerships not always being doable, but how about—it seems to me that we are increasing our grants coming in, and I don't know if each department is focused on that now more than before. But it just seems to me that we've heard of a lot more larger grants coming into the County, which would be probably one really good way for us to increase revenues without taxing our taxpayers. MS. SAKO: No, definitely. We continue to look for grant opportunities. We always have to be careful that we're not supplanting with expenditures we currently have. But we're always watching for those opportunities. One is like the wastewater grant. I think it came already, but it might be next week at your meetings. But it's actually only a 25 percent grant with a 75 percent match on our part, but it was something we were going to do anyway. So, then, why not take that 25 percent? Typically, if we were going to go and do a new project, maybe 25-75 isn't good, but on something where we were going to do it anyway, then we're definitely looking for all those types of opportunities. MS. EOFF: Thank you. I also want to thank Chairman Chung for initiating a process so that we could see the supplemental budget requests. I think it will help us when we speak to each department individually because it seems like, oftentimes in the past, department heads are kind of shy to let us know what they may need because they're afraid that we'll take it from someone else. MS. SAKO: Yes. MS. EOFF: So, I think it helps us to see that. And thank you for that, Mr. Chung. One other thing I thought was interesting this past year leading up to this budget is that we have created some new special funds that are generating income from their own, I don't know how you say it, but from the users. So, that is really helpful. Another observation I just wanted to mention was with the driver's licensing. Oftentimes, it's embarrassing to walk by on my way to work MS. SAKO: I know you have a great view from your office. I'm sorry. MS. EOFF: We have a long line of sort of unhappy customers over there. It's not all the time but most of the time. But not too long ago, the Mayor of Kaua`i came to our island and he said hello to us. I asked him what he was here for, and he said to look at our DMV(Department of Motor Vehicles) situation. And I was Page 16 FC-8 April 16,2019 like, oh, he's going to be critical of that. And he said, "No, you guys are awesome." So, I guess on Kauai it may be even worse. So, we're not the only island that suffers from long lines at— MS. tMS. SAKO: We all have to follow the same rules, yes. MS. EOFF: I was kind of shocked. I thought when he said that's what he was visiting here for, he was going to try and help us. But no, he was trying to see what we were doing better. So, anyways, right now I don't have any more real questions, I guess. This is a lot to absorb. And this, right now, is more of our time to listen to the departments' presentations. But thank you, all, for being here. And I wanted to just say thank you to everyone in your department, too who are willing to take our calls because a lot of us aren't, this isn't our expert field. So, getting to understand things better, like when Lisa and Keita Jo came to talk to us, it was really helpful just to be able to ask questions in private and get some insights into how that's another area where I think we've come a ways, is looking at the real property tax, and not just the fairness but where we're missing out on some income. So, right now, I feel like that's what you guys have been doing is finding lost income and bringing it back into the budget. Because, we know some of those fixed costs with the fringe benefits, etcetera, are not going to go away. MS. SAKO: Right. MS. EOFF: We can't do anything about it. So, we have to generate more revenue somehow. Not hurting the taxpayers is some of the things I was just thinking about I feel like you guys are focused on. MS. SAKO: Right. MS. EOFF: So I just wanted to say thank you to the Finance Department. MS. SAKO: Thank you. All of the divisions work very hard, whether it's to find ways to enhance revenues or to find ways to save. Sebastian and his team have also looked at more joint purchasing agreements with other counties and the State to get that purchasing power to save all of us money statewide. MS. EOFF: Thank you. I yield. CHR. DAVID: Thank you, Ms. Eoff. We're going to go to Ms. Poindexter. MS. POINDEXTER: I, basically, don't have any questions at this point because you know me, I'm always calling. I just want to say thank you for all of you for being just available anytime I have questions or concerns. And even from our constituents in that I need to get back to them, you've always been there, open Page 17 FC-8 April 16,2019 door,just quickly getting back to addressing stuff. I can send Hamana something and then, in ten minutes, I'll get something back that he goes and researches because some of the community members were looking for information. But all of you I've been in touch with. So, I just want to say thank you for being so available. MS. SAKO: You're welcome. Thanks. CHR. DAVID: Thank you, Ms. Poindexter. Mr. Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: I want to just second that from all the members here. Thank you for your hard work. I don't know how you put together a budget of this size. I have a hard enough time balancing my own checkbook. So, thank you. I have one more question, though. I talked to Steve. We had a meeting in Kona, and we talked about CIP (Capital Improvement Project) allotments that were actually over what we knew we would get to by the end of the year. What part of our CIP budget is over estimated this year, or is that a number that you actually have? MR. HUNT: Refresh my memory here. On the CIP overages, you're talking about over expending or having excess CIP available? MR. KANEALI`I-KLEINFELDER: I believe last year we had somewhere in the range of$1 In to $19 million worth of over-allotted CIP expenditures. I might be saying that wrong. But the idea was that we knew we had CIP projects we weren't going to get to, and they were still on the budget holding a place for money but we knew we wouldn't spend it. So, what do we have this year? MR. HUNT: You're talking about lapses that occur within the CIP budget, whether they be reprogrammed or whether they're continued for that project if it, you know, gets delayed but gets back on course in the following fiscal year. Is that the question? MR. KANEALI`I-KLEINFELDER: I think so. MS. SAKO: So, a lot of our projects for the capital budget are actually, I think I heard someone say "wish list," and they are. So, it kind of does hold a place, though. We know it's an important project. We know we need to do it, but there's not enough funding for it yet and there are other projects that actually have some funding. So, many of the ones that are lapsing are the ones that never got funding, and those are some of the ones that are being re-appropriated again in the coming year. Some may have allotments that they're not going to get to. And then, those would lapse and go back into the funding source to be re-allotted again in the Page 18 FC-8 April 16,2019 future year. But I'm not sure if you had a question on a specific project or if I'm explaining it well. MR. KANEALI`I-KLEINFELDER: Not so much for specific projects. It was more the idea that we're placeholding money for projects that we knew we weren't going to be able to get to. MS. SAKO: I think it's not actually placeholding money. I don't think there's money actually tied to it. I think it's just a project so that we don't forget about it and we do know it's important. MR. KANEALI`I-KLEINFELDER: Okay. And if there were funds like that being held and we did have things we could do quicker and faster with the same amount of money or less, I would like to see it put towards those projects that are MS. SAKO: Definitely, yeah. MR. KANEALI`I-KLEINFELDER: More easily accomplished. Who is Hamana? Hamana, thank you. I've emailed you a few times. I've never put a face to him. So, yes. Sorry, so, yeah MS. SAKO: No, but I agree with you. I mean, we don't want a project just kind of sitting on funds if it's not going to move. But sometimes if it's, let's say, a grant, that's the only project that we can utilize it on. But if it's in a different funding source and it wasn't specific for that project, then we definitely agree. We want the funds being put to good use and not just sitting there. I think most of the projects that are lapsing never did get funded. It's just a holding bucket. MR. KANEALI`I-KLEINFELDER: Thank you. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. I'm going to go to Ms. Kierkiewicz, were you first? Okay, go ahead. MS. KIERKIEWICZ: Thank you, Chair. I'm just sitting here listening, Deanna, and I just feel really impressed by your ability to answer all of our questions with so much detail and thought and meaning. And I just feel really lucky that we, as a County, have you and your team. So, I just want to say that. And I know that you have bent over backwards in many situations to help me help the constituents of District 4. So, I want to make sure that you know that. I have a few existential sort of questions. But before I get to those, I have two technical ones. In taking a look at our Fund Balance, is there any way that some of that money could be used to increase our contingency relief funds as Council Members? I hear stories of back in the day when Council Members had, like, $100,000 to give. And so, it's hard having stepped into this position of only Page 19 FC-8 April 16,2019 having $15,000 to be able to support work in the community. So, I just wonder if any thought's been given to that. MS. SAKO: I also remember when it was zero, but just to put reality in here too, okay. But, yes, Fund Balance is one of the areas we're looking at. And when we do the March budget, we're still kind of early in the year. So, it's one of those things we try to predict what the June 30 Fund Balance is going to be. And so, we still have staff working on that. We still have a couple of weeks to go before we present the May budget. And so, it is one of the areas that we're looking at as a potential revenue source that may be increased. MS. KIERKIEWICZ: Okay. That's great to hear. The other technical question I have is, there's a lot of articles coming out about a potential recession, slowing down of the economy. And so, I wonder because there is a little bit of room to push our ability to leverage bonds and debt service as a County. I mean, is that consideration in the crafting of future budgets where we invest in critical infrastructure because it's cheaper to do it then because of the recession that we're in? And by doing that, we could then stimulate local economy. MS. SAKO: That is definitely one of the things. I think we try to do our projects when construction costs are lowest. Clearly, now is not one of those times. But we do try to do that. And we have a lot of projects coming up. As I mentioned earlier, some of the debt service increase is for a lot of various projects. But definitely a lot of sewer projects and SRF (State Revolving Fund)projects that are coming up. So, it will kind of help to boost the economy, getting those done during those times. MS. KIERKIEWICZ: Okay, great. Okay, the fun questions. MS. SAKO: The existential, I think you said, yes. MS. KIERKIEWICZ: Yes. So, you've been with the County for a number of years. I always feel there's this fuzzy line between what's the government's kuleana and what's community responsibility. Do you think the line is in the right place? Do you think that government is doing enough, not enough, too much? MS. SAKO: Sometimes, it's not just government versus the community but the various levels of government. We kind of have our assigned responsibilities so to speak. Public safety is one of them. We have police and fire. We have roads. So does the State. Things like that. We've noticed that Public Works is trying to work more closely together with the State lately. But then we have other areas. One of the areas is really the social programs that tend to fall more under the State. But then, sometimes they don't do things, so we end up picking it up. And that's where some of the challenges hit with our budget as well, where we have to start to pick up other things, homeless and whatnot. Page 20 FC-8 April 16,2019 Sharon Hirota, our homeless coordinator, is doing a lot. But also, at least right now, the Governor has made available State funding. And so, that's been really nice that she's going to be able to utilize that State funding to do the project. Even though it may take some of our staff, at least the Governor is making those funds available. MS. KIERKIEWICZ: Okay. The second question is, I realize that salaries, wages, and benefits, those are beyond our control. Is there anything else that you feel is beyond the County's control that you'd like to change? How do you think you can influence that change? MS. SAKO: I think I spent a lot of time thinking about salaries, wages, and benefits because it's over 60 percent of the General Fund budget. So, let me think about that, yeah, and get back to you on that. MS. KIERKIEWICZ: Okay. The final one is, in what ways is our government like a business and in what ways is it different, and how do you think we could just bring more business-mindedness to how we run County government? I think we're opening up a Pandora's box when we talk about that because I feel like there needs to be just a review and an overhaul of Code and HRS, but I'd love your perspective on that, on what we could do right now. MS. SAKO: I definitely came from business before the government, but there's things that, I guess, everybody wants us to be more like a business, and sometimes that works. Customer service, definitely. We should all have great customer service. There's no doubt about that. But there's also things about running a business and decisions you make when you run a business about being profitable or not, that you have choices you can make that government doesn't always have that same choice. We don't have a choice on whether or not we're going to pay certain benefits or how much we pay our workers. We have to work harder sometimes to make certain decisions and to make things happen because we do have more maybe red tape or different things that we have to work through to get things done. And so, there's good things and bad things about that. So, yeah, I'm just trying to kind of think about it. But certain—do things we have to do, like having police officers on every street or in every community. Those types of things, they cost money. But at the same time, it's not like if the police officer—if someone in the community doesn't think they're solving enough crimes, we don't get to adjust their pay or charge someone less. The system we have setup for most governments with taxes coming in to pay for things is not quite the same as being in a business. But it doesn't mean we don't try to save money when we can and run it that way. MS. KIERKIEWICZ: Sure. I have a follow-up question to that. I mean, how do we get the average person to begin to grapple with all of the information we have Page 21 FC-8 April 16,2019 and understand that we have a lot of tough decisions we need to make? Because, I mean, we see letters to the editor, we get emails, we get tagged on social media posts about everything that government is doing wrong. I mean, there are only a few constituents here in the audience that are here listening to these conversations. So, how do we begin to get residents to understand this is what it's like to be marching in the shoes of someone that's working in government? MS. SAKO: I think we try to get the word out. A lot of people are not afraid to give suggestions, and they're actually appreciative when I say, "Oh, yeah, we can do that, but we can't do this because such and such prevents us from it." But not everybody takes the time to do that. So, I guess it's just more public education or outreach to be able to explain those types of things. MS. KIERKIEWICZ: I just have to share. A constituent says they have a suggestion for something, I'm like, "Great. Are you volunteering? Let's work together." Anyway, thank you, Deanna. I yield, Chair. CHR. DAVID: Thank you, Ms. Kierkiewicz. Mr. Richards, go ahead. MR. RICHARDS: Thank you, Chair. At the risk of further opening up Councilwoman Kierkiewicz's Pandora's box, and again listening very closely and carefully, one of the questions that was floated before me—and I like it—I'm not sure what your take on it is, and that's why I'm going to pose the question. We have our Fund Balances coming forward, unexpended budget line item, whatever the case may be. We don't do it—at least I'm not aware of us doing it. But if a department is able to put in cost-saving measures so they don't have to expend their total budget, currently it goes back into the General Fund for the Fund Balance. Correct? MS. SAKO: Correct. MR. RICHARDS: Okay. So thinking outside of Pandora's box, is there a way to reward those departments and let them keep that money to roll over for the next budgetary year if they're trying to do something? And I don't want to press you for an answer right now, but I will press you for an answer later. Because, if we give directors latitude to implement cost savings, I think it's reasonable to allow them to keep that cost savings to apply to something going forward. So like I said, I won't ask you now but I will ask you later. I yield. CHR. DAVID: Thank you, Mr. Richards. Anyone else? No? Okay. Almost done, Ms. Sako. So, what I'd like to say since everyone is done, I have a question. On the supplemental budget request that—thank you very much, Chair Chung, for supplying this information. Procedurally, so you get all these supplemental requests, and I notice at the bottom it's approved, the amount denied or deferred. When in the budget process, do these things get reviewed and either rejected or approved? Page 22 FC-8 April 16,2019 MS. SAKO: There's a long process. Departments started submitting supplemental budget requests back in November when they submitted their budgets to us. So, we had meetings with each department in December and January. And so, we were able to talk about them and kind of figure out the impact it's having or how great the need is, so to speak. So, we're able to kind of do that. Then, of course, each department prioritizes their own request, but then the Mayor obviously helps to look at the overall need of the County. And so, this year, definitely public safety has been on a lot of people's minds. We hear a lot from the community. And so, that is why police got many of their supplemental budget requests funded in the budget, and those are included in this March budget. So, as we go to balance May, if we have any additional funding, especially if the GET flexibility bill passes at the Legislature, then we can look at more and we would be able to include additional ones. But otherwise, it kind of goes back almost to Mr. Richards' comments of, you know, if they have cost savings within their department, they then could fund some of them themselves, basically. CHR. DAVID: I see. And so, these forms are all blank. So, at what point would we be able to see which ones were approved as far as the supplemental ones? MS. SAKO: I don't know how good we are about filling out the bottom of those. But, yeah, the ones we submitted from Finance were not the ones that have been funded in any way, shape, or form. CHR. DAVID: I see. Okay. That was just my question on process. Great. Other than that, I really want to thank you and your staff for always being available like we alwaysI think this Council really appreciates everything that you folks do and are willing to answer our questions. I appreciate that very much. So, thank you for your hard work, people. Thank you. MS. SAKO: Thank you. Our budget team and Steve and I will be here for the next few days with you. CHR. DAVID: Thank you. Great. MS. SAKO: And even afterwards. I mean, our doors are always open. CHR. DAVID: I'm sure we're going to have more questions as we go through this, right? Okay. Mahalo, everybody, for being here; Department of Finance, Deputy. Council Members, do we need a break? I think we do. We're in recess for about five minutes. Thank you. Recess: At 10:35 a.m., the Chair called for a recess. Page 23 FC-8 April 16,2019 Reconvene: The meeting reconvened at 10:50 a.m. CHR. DAVID: I'm calling the Special Finance Committee out of recess. (4) Planning Department: CHR. DAVID: Right now, I'd like to call Planning Director Michael Yee to the table. Go ahead with your presentation, Director. Deputy Director? No? You may come up to the table. (Note: At this time, Planning Director Michael Yee, Deputy Director Duane Kanuha, and Administrative Services Officer Douglas Le came forward to address the members of the Committee.) CHR. DAVID: Aloha, Director. Please introduce your MR. YEE: Aloha. Michael Yee, Planning Director. To my right here? MR. LE: Aloha, Douglas Nam Le, Administrative Services Officer. MR. KANUHA: Duane Kanuha, Deputy Planning Director. CHR. DAVID: Aloha, welcome. All right, go ahead. MR. YEE: Okay. My presentation's fairly short this year, but I do want to answer a couple of questions that came up earlier, issues. One was Council Member Kierkiewicz had asked Finance around is there a strategic plan. And maybe not specifically as Deanna Sako had answered, but we have a plan. It's called the General Plan, and that should be a guiding document. So, I know the General Plan sits on your desk, on every other department head's desk, right, as quick reference or as a big paper weight. But that is a guiding document that we should be following in trying to give us direction. And then CDPs, our Community Development Plans, are then aligned to it and so forth. So, again, we're in the—one I'll gettowe are updating the General Plan. So, it comes at an important time. The other issue that was raised was around how do we involve community in public process. Right? How do we increase their knowledge over government? Boy, if we could answer that question, we would probably resolve a lot of issues around the entire U.S.A. in terms of how communities struggle with community engagement. Right? Especially in—maybe in a small town, it works better but certainly on an island this size, it's much more difficult. The last two budget hearings that I've come to, I've spent some time trying to provide some information around community engagement and how we need to try Page 24 FC-8 April 16,2019 and overhaul it here. And we're basically using the same system. And within the same system, I would not call it the greatest community engagement that we can have. We typically end up with the privileged folks that can get away during the workday to testify or to participate in public processes. So, we have a long way to go, but we need additional resources to have true community engagement. But it doesn't say it doesn't happen either. There's a lot going on. There's a lot going on in terms of lava recovery efforts in trying to engage community around what those plans are. And all you can do is approach it day to day to try to build that trust between community and government and try to be as transparent as possible about the process. It's definitely a work in progress. I don't know if trying to achieve world peace might be easier, but we'll see. (Note: At this time, Mr. Yee provided a PowerPoint presentation to the members of the Committee. For viewing of the presentation, please see the DVD copy of the meeting proceedings on file in the Clerk's Office or navigate to the Council's video archives online in the County's webpages at www.hawaiicounty.gov. A hard copy of the presentation is made a part of the record, see Comm. 117.6.) MR. YEE: So that's just a quick wish list. There's a lot of detail with the positions and stuff. That's why I brought Douglas out here, if you have any questions for him too, that's his role. CHR. DAVID: Thank you, Director. Douglas, do you want to say anything before we go to questions? Okay. Council Members, questions? Ms. Poindexter. MS. POINDEXTER: Your last comment, maybe if they increase our contingency funds like Councilwoman Kierkiewicz had requested, maybe that's something that we could help with. When you talk about meetings with the communities, we could help fund some of the refreshments or something. Whether it's getting some childcare or whatever it is, we could work with you in that way as well. Thank you. CHR. DAVID: Thank you, Ms. Poindexter. Anyone else for Planning? Questions? Ms. Eoff, go ahead. MS. EOFF: Doesn't Planning have some sort of role or obligation to prioritize our Capital Improvement Projects? I didn't hear you talk about that, but as far as I think I remember, that's one of your responsibilities. MR. YEE: Yeah, so, the process is departments submit their Capital Improvement Project requests to us. We prioritize and then send it off to the Mayor and Finance. It's pretty much out of our hands from there. Page 25 FC-8 April 16,2019 When I came into the position, I tinkered around with criteria and created a point system to it, which you received last year, where we prioritized them generally around greater alignment with the General Plan and CDP, of course, which is not unlike a lot of other jurisdictions on the continent where you go through a very specific selection kind of criteria, you award points, and then you fund a certain amount of the projects. And that's fairly automatic. Here, it's basically I prioritize them in some fashion, and I push it on to the Mayor and Finance to make decisions around CIP allocations. MS. EOFF: Thank you. CHR. DAVID: Thank you, Ms. Eoff. Anyone else? No? Oh, Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Hello, Director Yee, Deputy Kanuha, and Douglas. Nice to see you. I really enjoy working with you and your department. Everyone at Planning has been extremely helpful in my role as the Planning Committee Chair. And so, I just want to mahalo you for that, and I appreciate seeing your wish list. We as the Council are going to do everything that we can to try to make those dreams become reality. I just wanted to follow up on that point that you made earlier on about the guiding document. Totally aware of our General Plan. I just wonder, we have so many different plans. I would like to see one overarching document that coordinates and aligns all of those plans. And so, I wonder because you have here, you know, we're going to be having the overhaul of the General Plan and CDPs. How do we start to incentivize action around that? MR. YEE: Can you define "actions" a little bit for me? MS. KIERKIEWICZ: If we take a look at where we want affordable housing or if we want economic development centers or areas of recreation, well, that takes a lot of capital to make happen. And I know that we have the Opportunity Zones program, but that's only for Hilo and Kona. It doesn't extend to the rural areas of our island. So, I just wonder if we as a County can create other incentives and programs to encourage that sort of capital investment so that these plans don't just sit on the shelf and are just a wish list, but we actually realize them in our lifetime. MR. YEE: So, I will quickly say it's not as if they sit on the shelves. I think a lot of folks have this General Plan and other plans in mind as they approach their role and whatever. It could be sewers, it could be roads. But frankly, in the two years that I've been a part of the Administration, we've all operated in scarcity mode, right? It's been under budget cuts. And so, the idea of trying to grow something new has been very challenging. Hopefully, this new period we're walking into with a little more revenue opens up opportunities for people to think. Page 26 FC-8 April 16,2019 Not unusual to hear a planning director come up and say, "Hey, we need more functional plans." I think that's what you're driving at is a more functional plan around the housing strategies; a functional plan. And again, as I read a recent headline like we don't need studies, we need something doneI'm a firm believer of that too. So, waiting around for plans shouldn't necessarily be a call for inaction. But folks the leadership has to show efforts around strategizing around the things you're talking about, and how do we create that under this new kind of paradigm that there's actually some resources, finally. So, if there's issues around—and I know last week you had made a comment that, and I wasn't here for it, that the Housing Administrator said there was a need for, like, 9,000 units by 2025. MS. KIERKIEWICZ: 2025, yeah. MR. YEE: And your question was, how do we get there, right? We don't need a big fancy plan to start thinking about how do we get there, but we definitely have to have some thought around how do we get there; what are the different options that we have. And I do know we're doing a lot there. The Administration has been very proactive around different strategies to bring on more supply. You don't hear about them, you don't read about them, but there's a lot of us working at different angles from, and you had mentioned, Land Trust creating different rules around accessory dwelling units to changing zones to rural. So, there's a variety of things that we're working on, it's just not written down somewhere. And it's always helpful that, as Administration changes, it is written down eventually. And that's what I mean by having some functional plans, some strategies written down. MS. KIERKIEWICZ: I think that's really helpful, and I think you hit the nail on the head when you start to talk about changes in Administration, because people term limit out. How do we ensure that we can all agree on where we need to go and that vision doesn't become a political football depending on who's in power? So I am aware of all of the work that you folks in the County are doing. So, I'm glad you stated that because it often doesn't get reported on in the paper or made into a video clip. So, thank you, Director. I yield, Chair. CHR. DAVID: Thank you, Ms. Kierkiewicz. Anyone else? Council Members? Oh, Chair Chung. MR. CHUNG: Very briefly and thanks, you guys, for the short presentation. I just wanted to talk about that aspect of your budget that kind of stands out and has to do with the monies that are going to be devoted to the short-term vacation rentals. Can you kind of break everything down for us? I think it amounts to Page 27 FC-8 April 16,2019 about$800,000, right? So, is that money that's the cost of operating this program, or are we going to recoup it somehow or what? Explain. MR. YEE: Yeah, Douglas will take it from here. MR. LE: I'm happy to go into details, and please stop me if there are clarifying questions that would be helpful. CHR. DAVID: Douglas, can you please state your name for our staff,please? MR. LE: Of course. Douglas Nam Le, Administrative Services Officer. CHR. DAVID: Thank you. MR. LE: While many in our department were working with Council on the ordinance, my team was actually kind of running in the background trying to understand how we would stand up the operational aspects of what would be provided for in the Code. And so as a department,we've been working kind of both tracks. What the Code did was provide an enforcement fund. That is a new fund for the County. And so, this fund operates like some of our other funds where revenue generated stays in the account and is used for the specific purpose of the account across fiscal years. So once that was clarified, and as our department started to develop the rules that would kind of dictate how folks become registered, some of the intricacies of the non-conforming use certificate and, I think, the complexities behind some of our land use, we started to think about"so what can we expect" and, entering this budget process, had to make some conservative assumptions about what is out there. I think for any of us who have been following this issue for the past few years and especially a lot of the conversations that were generated around our own ordinance and its passing, you know, some people say that there are as many as 15,000-16,000 vacation rental properties out there. Looking at the limited data we have available to us, we confidently feel that there may be 15,000- 16,000 listings, but there are many platforms out there. Folks are smart about their marketing, and they cross post. We think confidently the actual number of properties of all kinds of types, both hosted and unhosted, is probably closer to roughly around 8,000, plus or minus 1,000. I think if we had this conversation in about a month or two, I could be able to give you much more definitive numbers and figures based on what the market is bearing, right, like who is coming, who is registering, and what the context for these operations are. Page 28 FC-8 April 16,2019 But even if you take 8,000 as an assumption, and I'll get to answering your question very shortly, we had to start kind of thinking about who's hosted, who's unhosted. And so, basically the figures that you look at now, if we anticipate of the 8,000 projected roughly about 3,000 come in to register because they are unhosted, we anticipate some of that revenue coming in in this fiscal year. And just a few weeks ago, we were discussing about adding some money into this current fiscal year for us to start up operations. But that$800,000 in this fiscal year and into next fiscal year is really an estimate. We don't anticipate running the program on an annual basis to take a full $800,000. It really was this dual exercise of capturing the revenue that we think we will receive and allocating kind of conservatively and thoughtfully the expenses that we require to run this program year in, year out. Of course like with any new operation there are upfront costs. We'll have to build out some workspace, get some equipment, buy some software to support enforcement. So, things are a bit heavier in this first year of 2019-2020. But as you look at some of our projections in out years, really what are the ongoing recurring costs for the seven positions that we have requested through this, including the fringe, you know, EUTF (Employer-Union Health Benefits Trust Fund) and retirement benefits, and then some ongoing costs that we imagine that we keep as good practice. So for example, the software which we will procure, we have a price tag that we're budgeting for. But the procurement process will met out what our annual costs will be in the next few months once we enter that process. And even budgeting for something like a hearing officer. I hate to jinx us by even mentioning it, but these issues will become complicated. But as standard practice for our Planning Department budget, we do budget an annual amount for a hearing officer should things ever go to a contested case. And because this is a very specific short-term vacation rental use, we're holding those monies too. If, say, we don't spend it in a given year, those monies get repurposed within the fund. So, that's been our overall approach. Things are high in this current year and the early part of next fiscal year, because we are thinking about what is revenue and what is expense. But they do level out in out years, after this rush of registrations come in and we're able to start up our operations. MR. CHUNG: So, everything is going to be driven by the revenues, or are you guys going to have to be subsidized by the General Fund at the beginning? MR. LE: So from what I understand because this is set up as a General Fund, we have to be mindful of spending within our limit. If we have a windfall of cash in the first year, we're able to spend that money as it goes on. But if we have a short year or a big year, then we'll manage accordingly. There is the reality that we are hiring positions through this fund. And so, we have to be thoughtful and as Page 29 FC-8 April 16,2019 proactive as we can in terms of being able to meet our commitments once these positions are fully hired with these funds. MR. CHUNG: Okay. And these positions are going to be the ones enforcing the MR. LE: Yeah, supporting with enforcement. The enforcement just doesn't fall on our inspectors. Right? We have folks in the front who really help to take complaints, receive questions, process these. And our planners, as a team, and our inspectors in both East and West Hawaii work together closely on enforcement activities. MR. CHUNG: Is there any possibility of hiring independent contractors or a contractor to do some of that work, short of hiring more people? I am not saying that I'm against the notion of hiring more people, but is that a possibility? MR. LE: I wouldn't rule it out at this time, but I do have to say that is not a tool that we have considered at this point. Perhaps like a lot of the ways we've had to plan for this effort rolling out, we plan for what we think we can expect. And should demands increase significantly, we can always adjust and we would work with the Council to kind of exercise your authorities in supporting us in whatever we need to change. But it's really hard to say at this point. MR. CHUNG: Okay. But going forward, let's assume for argument's sake that these seven positions were approved. So going forward, it will be sustainable going forward? We're probably not going to need more employees, right? I mean, I know it's very difficult to look into the future, but— MR. utMR. LE: That is not our goal. Our goal has been to kind of shape a program and a staffing level for this budget season that is sustainable for the long term, much like how we face challenges in our day-to-day work with our general funds within the Planning Department. When demands peak in a certain area, we think about how we reallocate resources and reprioritize the tasks that are assigned to our team,just like every other department that is within our County family. And so, we have to really look hard and deep six months, 12 months out from now when we actually have information by which we have to make those decisions. MR. CHUNG: I suppose, though, as long as the operations are funded entirely by the revenues that are generated, it should be no problem, right? MR. LE: Yeah. MR. CHUNG: Okay, thank you. CHR. DAVID: Thank you, Chair Chung. I'm going to go to Ms. Eoff and then Mr. Richards and then Ms. Villegas. Page 30 FC-8 April 16,2019 MS. EOFF: I don't think Mr. Richards has had a chance to speak on this round. CHR. DAVID: Oh, you did? MS. EOFF: Yeah, I did already. CHR. DAVID: Yes, Mr. Richards, go ahead. Thank you. MR. RICHARDS: Thanks, Karen. Thank you, Chair. Thank you, Councilwoman. You touched on the General Plan, and the CDPs were brought up. I don't disagree that we need documents to help us, but would you characterize the General Plan as a living document? MR. LE: I would. MR. RICHARDS: The reason I pose the question—and you and I and Michael have had conversations around this going forward—we continue to evolve. And if we took the General Plan strictly as it is going forward, since it's basically written 15 years ago, we'd be kind of running up against a couple of walls, which I want to bring up. One of the walls that our County is facing is we have trouble getting our building permits through the process. Is that a shortness of resources? And again, I'm not going to press you for a hard answer right now. The problem is, as we talk about the recovery, as we talk about going forward, as we talk about the need for housing, if we don't have a way of getting through the process, we artificially slow down our economy. I was concerned about that previously. I'm more concerned about it now. If we don't have some way of speeding that up to get it through, I fear that's where we're going to be really impacting our County. And again, we've had the philosophical conversation. I believe government is there to facilitate and to try and make things work, as opposed to just putting the brakes on everything. That is a philosophical conversation to have amongst everyone. But going forward, is it a resource thing that we need to give to Planning and Public Works to make this whole process go quicker? Becauseagain, it's my belief that if we have the economy, we will generate the resources to take care of the community. But if we don't have that economy, we're going to be shortsighted. So the question is, is it a resource problem? MR. YEE: It would be foolish of me to say it's not partially a resource issue. There could be more resources that could always do more. Whether or not it makes us smarter will always be a question, right? And so, I can't speak for DPW (Department of Public Works) and what they need and stuff. I don't want to put all of our baskets on EnerGov because that's not where it rests. But we've been working on a project for two years to implement a new permitting software. It's Page 31 FC-8 April 16,2019 not important that it's the software that's coming in right now from a Planning aspect but from an aspect that, in getting ready for it we've had to review our processes within how we do permitting and within that, we've already found some things that are changing and how we would improve that. So, I think through this implementation of EnerGov, it forces us to know where things could be inefficient or are inefficient and what changes are we making now and not just waiting for EnerGov. So yes, I want to add that, from the very beginning, one of the top priorities from the Mayor has been around improving the permitting system. Clearly EnerGov was just one piece of the strategy. And there's continual discussions around how to improve it, and that never ceases to end it seems like. Thank you. MR. RICHARDS: I told you I wouldn't press you hard today, but we're not pau with these conversations. So at this point, I'm going to yield. But again, coming back to the economy, which comes back to getting part of that which is the building. So, we'll revisit that in the very near future. I yield. CHR. DAVID: Thank you, Mr. Richards. I'm going to go to Ms. Villegas. MS. VILLEGAS: Aloha. Thank you for being here and taking the time to explain things so eloquently. I also have appreciated my time with Planning and your department and your patience and graciousness with the steep learning curve of this new position for myself. I guess my question comes, and I don't know, I think it kind of bookends what Council Member Richards was talking about. And I guess,just from a broader perspective and it doesn't have to be exactly accurate, but my question to you would be, we have a lot of properties that are already built and already zoned under certain usages, and what would you say the percentage is that is used for other businesses or capabilities? Let's say agricultural lots, for example, being used for industrial purposes. Or residential areas being used for commercial purposes. Some of the things that I've been hearing from my constituents are concerns about, if we enforce what were some of the laws that are already on the books, would that provide our County with an opportunity for more equitable incomes related on the current zonings that are out there? So,just in your experience, because this is definitely your forte, do you see that as a larger problem? Would it be helpful for more enforcement? Just kind of, how do you see that broader perspective? MR. YEE: I'm looking at my deputy because he has so many years of experience through different administrations, that if he has a better perspective on that response. MR. KANUHA: I'm not sure I really understand what the question is here. Let me see if I can repeat it. I think your question is, if there's more effort to bring Page 32 FC-8 April 16,2019 into compliance activities that are happening on residential properties or agricultural properties that maybe shouldn't be happening, that effort would sustain more economic development in the areas that they should be happening. Is that what you're asking? MS. VILLEGAS: Close. Not necessarily economic development but a more equitable tax base for what the properties are actually being used for. MR. KANUHA: Oh, okay. MS. VILLEGAS: One example would be the recent change for ag (agricultural) lots under one acre now are being taxed as residential. So, I just hear from different people saying, "Well, I know that property's being used for this,"but if I look at the TMK (Tax Map Key) map, it's zoned and they're paying taxes based on this other zoning. So, that becomes one of my questions about some opportunities potentially for improvement in the County if, mind you I don't know exactly how we do it, but I wondered from your perspectives if you would say that is a major issue or a small percentage, or just kind of how you see that. Because it's kind of on the other side of the economic growth we need to see happening with the planning and permitting going through, but then also on the backend how we're making sure that what's out there and what's really happening is contributing to the appropriate tax zones, margins, amounts. MR. YEE: Steve Hunt, Deputy for Finance,just stepped up. I think he probably has a good response. (Note: At this time, Finance Deputy Director Steven Hunt came forward to address the members of the Committee.) MR. HUNT: Sure. MS. VILLEGAS: Hi, Steve. MR. HUNT: Yes, Council Member, it is kind of crossing over into the Finance area because now you're talking about taxation and real property taxes. So, to the extent that the County of Hawaii taxes right now what is based on zoning and not necessarily use, we did do an effort on Kauai where we changed the classifications to use based as opposed to zoning based so that potentially if that was a major paradigm shift in terms of taxation on use, that could be something that would generate potentially more revenue for those more intensified uses. But really, the Planning perspective, I guess, is really the compliance, whether they should or be allowed to be using the property in that way. So, if compliance is not going to be an effort and you really want to go the taxation route, then it would require some changes in the ordinance to effectuate that. MS. VILLEGAS: Great. Thank you for answering that for me. I appreciate it. Page 33 FC-8 April 16,2019 MR. YEE: This is not answering your question, but I'm going to take the opportunity to repeat something I said to a business class last week at UH (University of Hawaii) Hilo. Their assignment was to talk about Bill 108, the vacation rental bill, and its impacts. The stand I used that Kauai has been providing a lot of testimony to the Leg (Legislature) on vacation rental bill stuff is one out of 20 homes in Hawaii State is a vacation rental. One in seven homes on Kauai is a vacation rental. That gets into is that, you know, what does that do to communities when you have that kind of use that's clearly invading a residential neighborhood or something, right? And that's the balance we try to find. How do we not just be doing spot zoning? Are we really following a zoning for the island? Are we being thoughtful? There's a whole other layer that I shared with them. There's the difference between what we see as planners and what we want to do, and politics. And the efforts that it takes to create change that you want to have for Planning is a very political machine to be able to do the things you really want to do. So, I just wanted to share that with you. MS. VILLEGAS: Thank you. I appreciate your thoughtful answers. I yield. CHR. DAVID: Thank you, Ms. Villegas. Ms. Eoff, go ahead. MS. EOFF: Oh, okay, thank you. I wanted to talk a little bit about the County's priorities again and the beauty of the General Plan, and now the community development plans. Because I think it was in 2008 when Mayor Kim and then, I'm not sure if he was an executive assistant or what, but Roy Takemoto was to implement this idea of creating community development plans, which was basically to sort of decentralize government and bring it down to a level of the communities, so that the different areas of our island could vision how they wanted to see their districts developed. Where those priorities are, how to fund them, where roads should be built, all of that. And so I think,philosophically, it was a really important change for our County. And now I see we're going through the General Plan review period. And my understanding is that you will be trying to represent those community development plans within the General Plan, so that we have a better way to carry out those priorities. The other kind of thing that was set in place was, to do the community development plans, we had steering committees and then those morphed into action committees. So, now we have the CDP action committees who are supposed to be tasked with this implementation. I think that we're underutilizing these action committees. I know there's some constraints maybe due to laws that we may need to change. But I would like to see these community development plan action committees play a more important and noticeable role in how we implement both the General Plan and the CDPs. Page 34 FC-8 April 16,2019 So I don't know how to go about that, but I've felt that for a long time now and I've attended, not lately, but I used to attend a lot of the CDP action committee meetings in Kona. And I felt the frustration there that there'sI'm not sure if they're caught up in process but I don't know how to better articulate their role in this whole planning process for our future. MR. YEE: So, I don't think there's a doubt in my mind that Mayor Kim was attracted to my experience working with communities and wanting to have plans come off the shelf in trying to help communities implement things. I came here and found out there were just a lot less resources to do some things, and so it is very challenging. So,just quickly, I think last year I talked about this at budget, which was I've always dreamed that if I get to it, I'd really like to work with the Mayor and with Finance, with you folks around, trying to create some kind of community matching fund for community projects. Because if they only can rely on CIP funds, the community projects will never rise high enough to get funded. They can certainly go to you for smaller kind of requests through the funds that you have, but these aren't significant large community projects. So, that would be a dream of how—and then the action committees could actually help prioritize those projects and work on those. So, that's one area. I will say Sunshine Law is very restrictive. Now, Oahu has neighborhood groups that don't follow Sunshine Law because of how they're set up, but they're not necessarily the model either. We've looked at that, and they have constraints too. You folks know I'm a huge proponent for equity. And so, I even get into this, a little bit of rub, where trying to rely on the community development plans for everything is great but I also want to then ensure that we have true community engagement that really is part of that process that puts input into the development plans. And as you know, the audiences typically don't differ too much between who comes in front of you in Council and who we see at CDP meetings. Somebody asked me recently at the South Kohala meeting, what would I really have them work on for the next year and a half, because they were kind of putting together their action plan. And I said, "If it was really my choice, you would ditch everything you're doing right now, kind of this busy work you're doing, around certain applications, and you'd just focus in a year and a half on community engagement, on the networks, on building folks and the relationships you're supposed to have out in the community. And when it's time to initiate the CDP revisions, you have that trust with all the different communities within your area, and you can then bring them into the process." And that could easily take a year and a half. You can't just show up at a CDP rewrite and say, "Oh, come out and participate." There's the lack of trust between true community folks and the participating. So, that would be a wish-list thing, but we're stuck in this system that we have. And so, I try to make the best of it but I also give staff a lot of leeway to try to Page 35 FC-8 April 16,2019 improve community engagement so we have as many different voices, especially the marginalized voices, in the room. MS. EOFF: Okay, thank you. And then before I yield, back to the vacation rentals. So, this enforcement or this fund, this special fund that was created, I would think that in this first six months, a lot of attention is going to be, and resources, are going to be spent on registering and answering a lot of questions and that kind of thing. But after this first six months, you won't see too many more people registering except for those in legal zoning districts. So, that will also change some of the income, right? Because, the nonconforming-use people will just reregister every year, the $250. But the registration fee that everyone will come up with in the first six months will diminish. So then, I guess fines and those kinds of things is how you would say the fund would keep being replenished? MR. LE: Yes, that is correct. After this first six-month period, registrations don't go away. But it will be folks in permitted zones who open new operations or maybe they shut down at a certain point and they want to reopen. And then for current nonconformance-use certificate fees and fines. MR. YEE: And I'll leave you with the cliffhanger of what happens eventually with hosted rentals and that whole ball of wax for registration on that end. MS. EOFF: Okay. So, that same fund could be utilized or would that would create—we'd have to create a new law. Okay, thank you. Thank you, Madam Chair. CHR. DAVID: Thank you, Ms. Eoff. Mr. Kaneali`i-Kleinfelder, you can—he's deferring to you, Ms. Poindexter. Go ahead. MS. POINDEXTER: Okay. When you talked about community engagement and the CDP, I think using us, Council Members, and each of us in our districts instead of just relying on staff and trying to figure out how to do that because we're at the grassroots level all the time, and at all the different community association meetings. And maybe we could be groomed into how you would want us to help with that community engagement with the CDP, and what are the steps or some talking points that we could help to have them engage in it. Because, we always talk about it in Hamakua. I know at our association meetings, a lot of times we'd bring up CDPs. I just had a talk with our Pepe`ekeo community about that and learning more about the CDP. So,just working closely with us, and I would love to be of, I think, great help to your department. MR. YEE: Thank you for that generous offer. Certainly, every Councilperson has credibility within their communities and have touches with folks that wouldn't necessarily come out. And we'd certainly want to do that, want to touch with them. And in the end, it comes down to you making that introduction, trying Page 36 FC-8 April 16,2019 to get them out, and the work that we have to do to instill that trust with them that we're working for them. So, yes, if you can open those doors, we'll happily step through. MS. POINDEXTER: Yeah, and I think the upside to our community development plan just being passed and not even an action committee yet, you know, we're still making sure that we have involvement from all the different communities throughout my coastline. I think we have an advantage to start that engagement early on, yeah. So, making that a model for us. So, thank you. CHR. DAVID: Thank you, Ms. Poindexter. MR. YEE: I wanted to make a quick comment on community development action committees. I understand when the CDPs first got adopted starting back in 2008, there was an administration change. And so, understand that for the most part the action committees that had been in place when I came in had been functioning under a different Administration than Mayor Kim. And so, you come in and you try to review how things are operating under a different Administration. So, I don't want to sit there and, like, bash the CDPs and the action committees. It's just the adjustments you make over time. Thank you. CHR. DAVID: Thank you, Director. Mr. Kaneali`i-Kleinfelder, go ahead. MR. KANEALI`I-KLEINFELDER: Good morning, guys. I just wanted to ask if any part of your budget has been pushed towards kind of fulfilling your mission statement and taking into account global climate change, which we've touched on a little bit. And I guess the world has actually decided that it's real now. Thank you. But is there a part of your budget set aside to start dealing with that long-range planning that you're talking about? Beccause there are manhours and man time set in stone for that. And to deal with some of the things that have come aware of recently regarding codes that could be updated and certain chapters of our County Code that need revisions. MR. YEE: My quick answer would be, it's not done in a robust manner by any means in terms of our budget and how it's being reflected in terms of trying to address climate change. I will say, though, we get significant funds: Coastal Zone Management funds. We get other special grants; coastal erosion. And these all feed into the impacts that we're going to see with sea-level rise and climate change. And so, it's not to say we're not doing anything because we don't have additional resources. We have some of that. But it's not as if I have been given, like, half-a-million dollars to conduct a full coastal look at all around the island in terms of sea-level rise. We're doing the key areas that we were funded for. So, yeah, not done in a robust manner. No, I don't have like any new staff working on climate change or anything. Page 37 FC-8 April 16,2019 MR. KANEALI`I-KLEINFELDER: What about other areas of our Code that you said haven't been revised in a very long time? It could use a little sprucing up. What about that? MR. YEE: As it relates to climate change and sea-level rise MR. KANEALI`I-KLEINFELDER: Or in any area. MR. YEE: Oh. I think, within my wish list, subdivision sits fairly high in wanting to update. And I've kind of set the staff at a certain point, which is not in the next year, I'd like to prioritize that. But regardless of the kind of resources if we're given any for, let's say, a consultant to help. If we didn't, we'd probably still have to try to pick it up and try to do it. It just could take a while `cause then you're using existing resources, existing staff to try to do something that takes a long time to do. But we don't have the staffing level to just set down everything and send a team on to do an entire Code change of the entire chapter, which is in the end what we would prefer. I mean, Maui is in their process. They might have adopted already. But they just went through a major overhaul change on their Code, and they had a consultant working on it. I would love to have that kind of resource for us to be able to launch into that. But then once you touch my, you know, let's say Zoning Code, you're going to end up touching on other sections for other departments. So, it's not this simple "I can just do it in a vacuum" either. MR. KANEALI`I-KLEINFELDER: This might be important to set some funds aside somewhere so you can start working on that because it's not going anywhere. And it's going to continue to be a problem until we address it and really set things in stone that we are going to require or not require. MR. YEE: I'd love to have more funds to do more planning. MR. KANEALI`I-KLEINFELDER: Thank you. I yield. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. Mr. Chung. Chair Chung. MR. CHUNG: Touching upon that matter of sea-level rise, maybe this is something we can have a broader discussion on one day at the County Council level. I've had some discussions with Chip Fletcher from the University of Hawaii, right? And he's willing to come here and talk to us. But he actually is of the opinion that the Big Island isn't in that bad shape. And then on the other end of the spectrum, I mean—and what he said was, the dangerous part about global warming for the Big Island will be the further impacts of hurricanes. That's what we're woried about, yeah. Page 38 FC-8 April 16,2019 But on the other end of the spectrum, I was told by a former DOT (Department of Transportation) director that there was a study done that might overly alarmist, but they said for Hilo for example, they're thinking that the coastal road has to be built somewhere around Kino`ole Street. So, there's two schools of thought on that, but really it's something that we at least should be discussing seriously. So maybe at some point later on, we can MR. YEE: Yes, I would agree having the different players that are looking at it. And certainly Chip Fletcher and others are heavily involved on the climate commission that I sit in on as the Planning Director for the island. Um, I just lost it. CHR. DAVID: It happens to the best of us. Don't worry about that. Thank you, Director. Anyone else? No? Then I just have one question before you leave. In your short-term vacation rental positions, you have two new positions for the Land-Use Plans Checker, and then two for the Planning Inspector, and three new positions for Planner III. Okay, I can understand the first two as far as being related to the short-term vacation rental, but how do the Planner III positions connect with the short-term vacation rental enforcement process? MR. YEE: The Planner IIIs were mainly for, let's say, nonconforming-use review. So, they would take those applications on. They would most likely also—if there were appeals, contested cases, and this is some of the new thinking. Usually, the Deputy or I show up for an appeals hearing. But in this case, there could be so many of them, we'd want this person to be able to go and testify. And that's not usually an intake person or an inspector. CHR. DAVID: I see. So, that's a specialized position. So, you have three of those, okay. Perfect. And then the Planning Inspector, they're the ones that go out on the ground. MR. YEE: Correct. CHR. DAVID: Okay. And the checkers are basically to make sure all the forms and stuff are MR. YEE: Yeah. CHR. DAVID: Okay. And then my final question would be, with these seven positions, after your vacation rental, like Ms. Eoff stated, when it's all said and done, your initial tally of how many we have and etcetera, would these new positions be able to help with what's being discussed about the global warming? Because once that all finishes up, once all the contested-case hearings are done, you're going to have seven, basically, new staff people. Would they be able to be Page 39 FC-8 April 16,2019 used to kind of fill that void as far as needing more staff to address some of those things we're talking about? MR. YEE: So, to maintain my credibility with the Department of Finance and everybody else, I would say our estimate of seven employees is strictly for vacation rentals. If there is excess capacity, I always have the ability to redirect resources as necessary. But given that this, you know, the vacation rental whole process is a wildcard right now, it's a better question that you'd ask me next year. CHR. DAVID: Right. I understand that. So, your answer is well taken. But just a thought, like a hopeful thought maybe later, yeah, personnel-wise. MR. YEE: Yes. Quickly, I finally remembered my other thought, which was Office of Sustainability. Oahu has one. It kind of coordinates resilience issues, sustainability issues. Right now, we kind of divide some of the climate change, sea-level rise between Research and Development, our department, and probably a couple others that I don't even know about. And so other jurisdictions tend to try to they've been specializing into a certain Mayor's Office or a certain department that really coordinates those issues. Yes, if we had great more funding and the Mayor or somebody really wanted to take a look at a new team to really coordinate that, that probably would be of help. I'm not suggesting that. Because we don't have that system, I've never really thought about it. But that's whatclearly, Oahu has gone in that direction. So, I just wanted to add that. Thank you. CHR. DAVID: Thank you. That gives us some options to consider as we move along with this. Council Members, I think if we're alloh, go. Of course you can. Mr. Kaneali`i-Kleinfelder, go ahead. MR. KANEALI`I-KLEINFELDER: So, if at the end of six months you find, then, if your positions were filled for the STVR(Short Term Vacation Rental) extra people, if they were filled but you did find that you didn't actually need all the staff members and you don't necessarily have a use for them afterwards, what is the plan as far as staggering down or just maintaining and keeping the positions? What is the there has to be some kind of thought there as far as what you're going to do if you don't need the people. Or if you meet, in six months, all the demands and you found yourself kind of with extra people who have extra time on their hands, what is the plan? MR. YEE: I think clearly the input I've gotten from other planning, from Kauai, Maui, Oahu, the idea that we would be well-staffed at seven doesn't even permeate our mindset that that can really occur. So, yes, I think we could possibly fall short of needing exactly seven. I don't see it being two or even four. And I guess, I'll be honest, I haven't really entertained that idea except, and generally speaking, because I usually have to be very accountable to both the Page 40 FC-8 April 16,2019 Mayor and to the Department of Finance and to you folks. And so, it's been clearly articulated that this is for vacation rentals, what the funds are for. So, for me to even say I could use it elsewhere, that's just not somewhere I want to go right now. MR. KANEALI`I-KLEINFELDER: Or if not elsewhere,just, I mean, do you for me, I bring seven members on for a Friday night. At a certain point Friday night, I'm going to look around and say, "I don't need seven people anymore. You're phased, you're phased, you're phased, and you're next if it gets any slower." Is there some kind of a thought process there? MR. YEE: This is making a broad assumption but only because it's been brought up by the rest of the Council as a round, a Part 2, you know, a bill for hosted rentals. And if we got into hosted rentals, let's say, in a couple of years, that would be another layer. And by then, we would kind of know what our additional staffing levels would be. If we were overstaffed, maybe we'd need less on the second bill; would be one guess, right. We could make adjustments then, too. But I'm guessing. MR. KANEALI`I-KLEINFELDER: Okay, thank you. I yield. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. Are we just about done? If no more questions, gentlemen, thank you so much for your presentation and for being here today and your patience. I will call this meeting into recess until 1:00, I believe, no, 1:30. Okay, great. So, we're in recess. Mahalo, everybody. Recess: At 11:51 a.m., the Chair called for a recess. Reconvene: The meeting reconvened at 1:32 p.m. CHR. DAVID: Welcome back, Council Members. I'm taking the Special Finance Committee out of recess right now, and welcome everybody back. (5) Hawaii Fire Department: CHR. DAVID: We're going to start with our Fire Department. Aloha, Chief. Welcome. You can get seated and started. If you want to bring anyone else up to the table with you, please do so, introduce yourself and go ahead. (Note: At this time, Fire Chief Darren Rosario and Accountant Melanio Lorenzo came forward to address the members of the Committee.) CHIEF ROSARIO: Good afternoon. Thank you for the opportunity to present in front all of you our budget for fiscal year 19 and 20 moving forward. With me today, I just wanted to introduce the staff that's behind me. I have Deputy Fire Page 41 FC-8 April 16,2019 Chief Lance Uchida; Assistant Fire Chief of Operations Division Darwin Okinaka; Assistant Fire Chief of our Support Services Robert Perreira; our Battalion Chief of our Emergency Medical Services Bureau Chris Honda; Battalion Chief Kazuo Todd who is our Fire Auxiliary Services Officer, takes care of our dispatch center, warehouse, and also our maintenance shop; Battalion Chief Garrett Kim who is our Special Operations Battalion Chief in charge of Water Safety, Ocean Safety Division, and our Rescue and HAZMAT (Hazardous Materials) stations; and then also Accountant IV Melanio Lorenzo, our fiscal officer. CHR. DAVID: Welcome. CHIEF ROSARIO: Sorry, I need to switch seats. So, I'm just going to do a real brief presentation and then be open for questions from all of you. I know you folks have a busy day and a busy week ahead of you. So, we're just going to talk about our Hawaii Fire Department's fiscal year 2019-2020 operating budget. (Note: At this time, Fire Chief Darren Rosario provided a PowerPoint presentation to the members of the Committee. For viewing of the presentation, please see the DVD copy of the meeting proceedings on file in the Clerk's Office or navigate to the Council's video archives online in the County's webpages at www.hawaiicounty.gov. A hard copy of the presentation is made a part of the record, see Comm. 117.2. In addition, Comm. 117.12 was discussed during the presentation.) CHIEF ROSARIO: So in closing, I just want to say that we're all working really hard as a department. I'm very proud of the men and women of our department who are working diligently with the Mayor and our Finance Department to provide for us. So I just basically gave you folks a snapshot of some of the areas that if there's areas for consideration, we greatly would appreciate some help in that. And at this time, I'm free to answer any of your questions that you have. CHR. DAVID: Thank you very much, Chief. Mr. Richards, go ahead. MR. RICHARDS: Thank you, Chair; and thank you, Chief. I liked your description about your lease-replacement program for the equipment coming forward. I want you to expand for me on the, looks like, 12 positions in your supplemental budget. Could you expand on that a little bit more and explain a little bit more detail as far as the captain positions? CHIEF ROSARIO: Thank you. These 12 positions are the positions required to fill the four stations I talked about earlier, with the officer positions. We run a 24-hour shift with three platoons: A Platoon, B Platoon, and C Platoon. So, each station will require three officers that work an independent 24-hour shift of firefighters there. We decided to ask for the fire officer because that's the person with the most experience, the leadership ability to run an incident. We could start Page 42 FC-8 April 16,2019 off with giving those companies an extra firefighter, but really you need to start with the proper supervision. So, it's a large task to make these stations NFPA (National Fire Protection Association) certified. But starting off with the officer is the first step there. Along with that, there's a second page that gives the cost, and I know it's a large cost. So, if there's consideration for even one of these companies getting the proper officer that they need, we would greatly appreciate that as well. But the 12 positions is to cover those four stations with the three operating platoons. MR. RICHARDS: I would assume that you have these because that's a $1.2 million request I assume you have these prioritized. Can you share with us what are your priorities as far as getting this staffed? CHIEF ROSARIO: If I was to be honest, I would prioritize all of them equally because it's hard to say where an incident will come in. But if I was to look at the staffing currently at the Waikoloa Fire Station, that is our Battalion Chief's headquarters. They had the extra firefighter there. As long as the Battalion Chief is in the area, at least they have one person that's there. Looking at call volume, I would say (Hawaiian) Paradise Park Fire Station would be one of the leads. They're one of our busiest units on the bre side. And Ocean View Fire Station, because of its remoteness, and it's one of our other high call volumes for fires in that area, those would be the two leads that we could look at. Laupahoehoe definitely also needs it too. That community is pretty resilient and a lower call volume, but just keep in mind their next in companies are either Central or Honoka`a Fire Station. And then Ocean View, if there's an incident in Ocean View, the fire trucks for backup are coming from Pahala and Captain Cook. So, a great deal of mileage in between. Waikoloa has a South Kohala Fire Station just down the highway from there. Once again, it's our battalion headquarters there. So, if I had to say out of these four where our priority would be, I would have to say Paradise Park because of the growth that's upcoming, also with the medic coming in, and the call volume that they get. MR. RICHARDS: Okay, all right. I appreciate that. Paradise Park and Ocean View, I mean, both have reasons why you could arguably put them on top, and I hear that. Other question, Chief. In looking at your estimatesforgive me, we've got so much paperwork in front of us—it looked like the projected, and maybe you said this, but projected EMS (Emergency Medical Services) responses are less than last year, and rescues less. Is that because of the volcano incident? CHIEF ROSARIO: I did the projections based on the actual amount of calls up to date and then divided it up among the 12 months. But generally, over the summer Page 43 FC-8 April 16,2019 months and then also towards Thanksgiving through December are our busiest months. So, there will be some increases there. I would think there would be generally over close to 26,000 calls by the end of it. But the projection was based on actual numbers so far. MR. RICHARDS: And then prorated over CHIEF ROSARIO: Over the 12 months. MR. RICHARDS: So maybe we're just having a good year, then. CHIEF ROSARIO: So far we're having a good year, yeah. MR. RICHARDS: So, okay, we'll stop talking about it. Okay, I yield. CHR. DAVID: Thank you, Mr. Richards. Go ahead, Ms. Poindexter. MS. POINDEXTER: Yeah. I don't know if this goes to your Finance person, but the Honoka`a Fire Station replacement and the re-appropriation, I know that was going to lapse. So, are we ? MR. LORENZO: We submitted the re-appropriation for 2019-2020. MS. POINDEXTER: Okay, good because I was speaking with Representative Mark Nakashima. So, I know that the ILWU (International Longshore and Warehouse Union) is looking to sell their property in Honoka`a, which is a large piece. I don't know if that would be a good location or not, because it goes right from the intersection there and then you take a short left in the intersection to the main highway is right there. So, that may be a good place. And the other thing that I was thinking of, which I think I spoke with you about before, is maybe the police station taking that, building a new station, which we need one. And then Fire just building out from where that is if we break down the old police station, which is right behind of you, and expand that way. So, those are things to think about. And I'll talk with you more about that possibility. But I'm glad it's going back in for reappropriation. Thank you. CHIEF ROSARIO: Yes, thank you. That is one of the stations that, in the very- near to foreseeable future, we'll need a replacement. And I thank you for continuing on the conversation for that as well. CHR. DAVID: Thank you, Ms. Poindexter. Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. Thank you, Chief, and everyone for being here. My spouse is a firefighter, so I know how hard you guys work and I Page 44 FC-8 April 16,2019 appreciate your commitment to community, especially during all of the disasters that our community faced last year. I just have a few questions. So, your total proposed budget is about$48.7 million. What percentage of that goes to paying the salaries and wages and benefits? I think it's higher than the typical average for the rest of the County, right? CHIEF ROSARIO: Yes. I'll yield to Melanio on that to correct me if I'm wrong, but we're upwards of over 85 percent for salary and wages. MS. KIERKIEWICZ: Okay. So, that means you have about$12 or so million dollars left for everything else: equipment, other incidentals, training. CHIEF ROSARIO: Yeah, the OCE(Other Current Expenses), correct. MS. KIERKIEWICZ: Okay. So, I'm looking at the budget here, and it says that we have, I think it's $8,000 that BC (Battalion Chief) Todd has every year to spend for equipment? CHIEF ROSARIO: Yes, for station equipment items that—because we work a 24-hour shift, it's almost where we're running a household. So basically, yeah, it's $8,000 that's in there. He uses that to change out the appliances, standard station equipment, tools, lawn mowers, stuff that's utilized to just run the fire stations as well—and some of our firefighting equipment as well, too. MS. KIERKIEWICZ: Can you provide me with a range of what that number should look like? I'm sure you have a figure in mind. And I know that because your department has a strategic plan, and that plan is based on data. And I appreciate the innovative thinking that you put forward in creating this lease-purchase program. So, I feel like you have a pulse on every single aspect of your department. So, what should that equipment line item number look like? CHIEF ROSARIO: Yeah, so in speaking with BC Todd and what he's seen as far as the historical values and what Melanio had is, we came up with that$44,000 last year. And I'll just reach back to see if that's changed with any of his new figures. So, about$1 million dollars—no. Roughly about$40,000 is what that is. And then once in a while, there's a need to replace some of the higher ticket items such as our extrication tools, which will run about$40,000 which is what he mentioned. Those we've worked really hard to get grants for in light of the budget that we had. And we've been successful through the Sayre Foundation as well as some other community events. In fact, the Sayre Foundation provided three sets of extrication tools for the Waimea, Honoka`a, and I believe South Kohala area as well. But those items, that's one item that can take it up there. But we work closely within our budget to make sure that we're living within those means there. Page 45 FC-8 April 16,2019 And then we also got another $96,000 from the Department of Transportation for extrication tools as well. So, the men and women that stand behind me and work for the department work really hard for grants, and they've been really successful and I'm blessed to have them on board. So, we're trying our side, too, to augment the financial shortfall of the County as well. But I would say if we have this $44,000, that would cover his basic needs for the station requirements that have been historically projected over the years. MS. KIERKIEWICZ: Because if not, I mean, what happens? Do firefighters often pool their money together to purchase appliances, or are we having to fix appliances and it ends up costing the County more in the long run to just put band-aids on top of a problem? CHIEF ROSARIO: Yeah, so I'll tell you that BC Todd does a great job in giving us the figures that we spent"x" amount of dollars trying to repair this, say, range or so forth; it's better off to be replaced. When we are short, we'll move monies from other areas that, maybe, have a positive balance down to that area. Or if not, we'll defer the replacement or repair for a later time. But the first step for us is we'll move monies within the budget that's allowable to provide for the equipment there. The next step is to defer it, and the third step is to try to find someone else to help us pay for that. MS. KIERKIEWICZ: Got it. So, you've got contingency plans. Thank you. I can appreciate that. And then I just want to confirm, in taking a look at the equipment for EMS, there was an increase in the budget over the 2017-18 fiscal year. Is that because of the purchase of another ambulance? CHIEF ROSARIO: Last year—we're in the process of replacing all of our AEDs (Automatic External Defibrillators) and our life pack, our EKG (Electrocardiogram) machines. So, I'm thinking that's where there was a large increase. MS. KIERKIEWICZ: It's 5221.56. The allocation in 2017-18 was $116,000 and then it increased to $286,000. Is that General Fund money or money from the State? MR. LORENZO: It's from the State. MS. KIERKIEWICZ: Okay, great. For additional ambulances. MR. LORENZO: Yes. MS. KIERKIEWICZ: Gotcha. Okay, and then I guess my last question is, Council Member Richards had asked about those additional Fire Captain Page 46 FC-8 April 16,2019 positions. So because we don't have those positions right now, FEOs (Fire Equipment Operators) are TAing (Temporary Assignment)? CHIEF ROSARIO: We have a supplemental agreement with the Hawaii Fire Fighters Association. So, the next in command on that truck—so those stations are staffed with a Fire Equipment Operator or a Sergeant, and a Firefighter. So, the Sergeant gets an additional $2 an hour to do administrative office work, as well as supervision. MS. KIERKIEWICZ: Okay, that's helpful. Thank you. Thank you, Chair, I yield. CHR. DAVID: Thank you, Ms. Kierkiewicz. Council Members? Ms. Villegas, go ahead. MS. VILLEGAS: Aloha. Thank you for being here, and thank you for all you do for our community islandwide. I just had a couple of questions here. In looking at the budget presentation you went over and the numbers listed there, I just wanted to confirm that the supplemental budget requests, were those included in the number you have here, for the $48,724,458? CHIEF ROSARIO: No. Those are supplementals. So, those are if approved by this body or the Mayor or Finance, gets added to our budget. MS. VILLEGAS: Okay, great. So, I just did some quick numbers because I understand kind of a need for all of these things. So in just looking at those numbers and doing a bit of math, what I was able to come up with is the increase—if everything was allotted based on your supplemental—would be an increase in the overall budget by $2.35 million. That was the total of all of those other positions and the equipment. Thus, essentially increasing the budget difference between last year and what's being requested for this year by 3.7 percent. So instead of a little under one percent, it would put it at about 3.7 percent. Okay, great. I just wanted to make sure that I CHIEF ROSARIO: And to clarify, if you take the two apparatus, it'll say $650,000, which is a Class A pumper's general cost. But these first two is where we would do the apparatus replacement program. So, these were only if the County decided to buy the equipment outright, pay for it upfront. So basically, you could take out the amounts that are here, and allow the replacement lease payments to go through, and it wouldn't add anything more to our budget for that. So, you could take out almost this million-dollar total here because it pretty much is already funded through the apparatus replacement program if that continues. MS. VILLEGAS: Okay, great. And that cuts that in half, that extra ask. Okay, great. I just wanted to make sure that I had all those numbers in there, because it Page 47 FC-8 April 16,2019 seems reasonable when looking at the other departments and some of the transitions and increases. So, thank you for confirming that. CHR. DAVID: Thank you, Ms. Villegas. Mr. Richards, go ahead. MR. RICHARDS: Thank you, Chair. MS. LEE LOY: Oh, can I get a chance, please? CHR. DAVID: Oh, I'm sorry. I didn't see your light, dear. Can ? MS. LEE LOY: He had one already. MR. RICHARDS: Okay. CHR. DAVID: Yes, I know he did. So, Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Chair. Thank you, Chief, for being here. I want to walk back to the fire apparatus, the aging of the fleet. And I get it; we've got to replace our trucks. I just had a question on what does this do to the mechanical tools that need to service the fleet? Are we going to be looking at needing different types of tools because we have newer equipment? CHIEF ROSARIO: That's an excellent question. The first thing is, with this new equipment, it's reduced a lot of the repairs that have to be made, reduced the amount of towing that has to be made. That is a large tow fee of approximately $1,500 to $2,000, depending on where the apparatus is coming from. But as far as new technology, definitely we're actively involved in the specifications of the new apparatus. A lot of new technologies that come out, most of it on the realm of electronics. So with the simple computer and a few computer programs, our mechanics have gone to training funded by grants and in support with the Sayre Foundation. And right now, no excruciating extra equipment is needed for all of these new apparatus that we're bringing in. Basically, it's down to the basics as far as repair and maintenance, and then just the added aspect of the electronic functions that are added in, that they've been able to do with the technologies. So, a good example is many of the newer trucks we just purchased comes from a manufacturer in Pennsylvania. The onboard system, much like a lot of our cars, is computer-generated. If there's an issue at the station, there will be an electronic fault that will come out on the screen. The mechanic just needs to call in, hook up a computer to the apparatus, and, all the way from Pennsylvania remotely, their technicians will fix the electronic issue that's going on. So, we've expanded our maintenance-shop personnel to the vendor just through technology. Page 48 FC-8 April 16,2019 MS. LEE LOY: And then, looking at your equipment funding, you have station equipment funding. But I was more interested in the HAZMAT (Hazardous Materials)-response equipment `cause you mentioned partnership with PGV (Puna Geothermal Venture). And maybe this might be something you have to look back to Mr. Kim for. I was wondering if, because a lot of your equipment is driven by OSHA (Occupational Safety and Health Administration), which I'm assuming that all the other county firefighters have to adhere to, has there been any cross-collaboration for a larger-capacity purchase through a price-term agreement in which all the other counties who have to purchase equipment where we would have bigger buying power, has any thought been given to that? CHIEF ROSARIO: Yes, definitely a good question. Actually, we have a few items that are on a power purchase agreement throughout the State that we utilize for a lot of our fire equipment. I'm not really sure, but I believe although we just replaced all of our HAZMAT-response suits, but those are items that are getting placed on that as well. And in the future, we'll be able to purchase those large items through that. The items that we're looking at here are like one item, one item here. So, not large amounts as far as numbers, but just really costly as far as equipment. MS. LEE LOY: And those are those lifesaving tools that are really unique. CHIEF ROSARIO: The detection too. So, most of our equipment got a lot of work during the lower east rift zone. And I want to say that our partnering agencies, whether private or governmental, really stepped up. We were low on a lot of the detection equipment to expand the amount of people that are out there and monitoring the gases that were coming out of the lava flow as well. So, we got our hands on a lot of equipment that we could see the benefits for. And then now, we've been working with the Planning Department to see if we could utilize the PGV fund to purchase some of this equipment here. The thing with that is it generally is something that has to be tied in to the PGV response, which that would be one of the primary units that would be responding to any type of release or anything down there. But I know he's working hard. Chief Kim actually just started in this position, so he's getting overall a great amount of information and so forth, but he's doing a great job. MS. LEE LOY: And then for these types of HAZMAT-response equipment, is there an expiration date? Because I know sometimes these air filters that you folks use, they're only good for so long. And so,what does that lifespan look like? CHIEF ROSARIO: So, a good example is all of the suits that we replace are on a ten-year cycle. I think I believe we spent about$80,000 to replace all of the suits, different versions of Class A-, Class B-type suits. All of our detection equipment, Page 49 FC-8 April 16,2019 a lot of the detection, what do you call it, pads that go into it is a one-time use. So, if it's exposed, you've got to replace it as well. Most of the equipment we have, it's time sensitive by technology and getting outdated. I will say that if you would bring in a hazardous material specialist from a department that's in a County or area that's well-funded, they'll say that our equipment—and they have said, "Hey, this is really old equipment. We replaced this five years ago." It doesn't mean that our equipment cannot do the job. It just maybe takes a little longer to come up with the same results, versus with newer technology it's pretty instantaneous. Some of the things that he's been working on following up from his predecessor, is that in the past maybe we had to buy five types of different gas monitors and now we're bringing it into one monitor that would maybe examine an area for multiple gases and so forth. MS. LEE LOY: Now, I want to walk into the maintenance and repair because I also heard you say you're going to pick a new apparatus over a coat of paint. But I am generally concerned about the Pahala Fire Station and the condition of that. What would that facility maintenance and repair look like? And I say that because it's a very rural area and for it to fall into such disrepair is concerning. Share with me your thoughts on specifically that Pahala Fire Station. CHIEF ROSARIO: For a new fire station to meet the current needs and requirements for a public safety facility, it runs anywhere between $7 million and $11 million. We definitely would not need a large facility like we just purchased for Haihai, but one thing we would always look at is the value of the dollar. So, I always use this example: If you flew to Molokai and you looked at the Molokai Fire Station, you would say, "My God, why did they build such a thing?" But they're building out for 50 years. So, if you look at the Central Fire Station built in 1934 or '35, I believe, those engineers had the foresight to say, "We're building a station for 50-plus years." A large station that pretty much has done its job,just needs a little help getting back on track. When you look at the Honoka`a Fire Station, for example, probably it was just built for a staffing when it initially had just one firefighter assigned there, and then we slowly added on and grew it and grew it. But generally, if you were to ask me if we're going to build something brand new, you want to build it with the capacity for expansion that's needed in the area. I only say I grew up in Ka`u because I spent every single summer vacation with family in Ka`u. I just enjoyed being a part-time paniolo out there, fisherman. But it really hasn't grown a lot. In fact, the population has gone down as Parker Ranch has declined in the areas there. But a new facility would basically just need two bays of firefighting, a simplified training room, office, kitchen, and Page 50 FC-8 April 16,2019 living quarters. We don't need anything extravagant or anything there. But brand new does cost money; I'd say closer to $7 million for even the simplest facility. MS. LEE LOY: Thank you, Chief, for being here. Thank you for everything you do. I yield. CHR. DAVID: Thank you, Ms. Lee Loy. Anyone else? Mr. Richards, that's right. Thank you. MR. RICHARDS: Thank you, Chair. Chief, you talked about going after grants. Are you doing your own grant writing? CHIEF ROSARIO: I do a lot of grants for the department, and I continued only because once you get the knowledge and you know for a certain grant what the flow is, it makes it a lot easier. And then we slowly bring in people to learn it and take on that for the future. But I would say our department is made up of a lot of volunteers working on active grants. We don't have a grant-writer position. We're working towards—Deputy Chief Uchida is working on we're formulating teams for all of these specialized things that we've been doing globally. So putting together like a grant-writing team, someone to look over the grants. But we've been really successful with the CDBG (Community Development Block Grant) grant, not this year primarily because everything, for a great need, it needs to go to housing for the homeless situation there. But a lot of our apparatus did come from the CDBG grant for all of Ka`u, all of Puna. So, great with that. We utilize the Assistance to Firefighters Grant program a lot. That's brought in well over several million dollars to the County. The Sayre Foundation has been a blessing to us; over $2 million in donations already and continues to be even more. And very shortly, they're in the process of donating an apparatus to the Fire Department in the next few months. So, we look forward to that. Other small grants. The Department of Transportation's grants that we utilize. We even go down to Walmart grants. Any grant that's out there, we have a team that's looking for it all around. MR. RICHARDS: Are you missing grants because of lack of staffing to write them, or you're doing okay? CHIEF ROSARIO: I would say as far as grant writing, we're doing okay because all of us are doing that work there. To me, it's very rewarding work when you get I wish I could write a grant for my own personal use, actually. They're doing a great j ob. I mean, if we're looking at positions or anything like that, there's a greater need in other areas of the department for positions and so forth. I'm blessed to have a lot of people that are willing to go above and beyond their normal work duties to try to bring in some money to our department. Page 51 FC-8 April 16,2019 MR. RICHARDS: Okay. And the next questionChair, this is probably more directed towards Finance. Deanna, could I ask you a question? (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: Good afternoon. MR. RICHARDS: Sorry, Deanna. This is more of a procedural. Chief was talking about the lease-to-own equipment replacement program and asking for, to be sure we have an approval of, what it sounds like, placeholding legislation so we'd be sure we can approve the purchase coming forward. Is that the best way to do that? Because if we know we have "x" amount of money budgeted for this program, we know we're going to expend it. Is that the best way to do it? Is there a better, procedurally easier ? MS. SAKO: Right now, I don't remember how much is in the coming year but they do have $1 million or so each year budgeted for equipment replacement. And then each time,per the Charter, we come in with that resolution to approve funding in future years. And he's right, it takes like a year-plus by the time we do the procurement and the bids and verify the specs (specifications) and everything. So, it could be that in the next year he doesn't even need any money, but it's up to the Council to approve the resolution to move forward. But we've been doing this for several years now. So on the list that was on the screen at least, there's really only one that is, I think, not in the system yet, that H.O.V.E. (Hawaiian Ocean View Estates) truck, right? Yeah. So, I mean, we have replaced many over the last few years. MR. RICHARDS: So, I guess it's a little twofold on the question. The way we approve that, is that the easiest for Finance to deal with it going forward? But then also, if we run into a year, because I know you've been playing catch up, Chief, for a bunch of years now; we're just about caught up from what I'm viewing. So, if we don't need equipment in the next fiscal year,per se, my concern is that the easy way out is to then defund a portion of that, which will start the whole problem again going forward. So, how do we—do you understand what I'm trying to ask here? MS. SAKO: Yeah, we can talk about like a revolving fund or something, but we're trying to be fair to each department as well because they also have needs. But in addition, I am pretty confident they're not going to run out of equipment to replace because they still have several vehicles, type, I don't know, SUV (Sport Utility Vehicle)-type things that are beyond their useful life as well. MR. RICHARDS: I've been listening to what the Chief is talking about as far as funding. And once we get into it, then the reality, our capital investment is going to be consistent, which makes it easier on the County long-term going forward. Page 52 FC-8 April 16,2019 MS. SAKO: Right. MR. RICHARDS: As you pointed out, the maintenance costs go down, thereby with those costs going down, overall we're in a better position. But I want to protect that funding going forward so we don't inadvertently go down the wrong path as just wondering if there's a simpler way for the funding. And you don't have to give an answer on that at this point. Like I said, I'll ask you later. MS. SAKO: Sure. MR. RICHARDS: Okay. Thanks, I yield. CHR. DAVID: Thank you, Mr. Richards. Chair Chung, you had your light on. Go ahead. MR. CHUNG: Thanks for coming. CHIEF ROSARIO: Good afternoon. Thank you. MR. CHUNG: I just had one question. Last year or so, we had that discussion about the Battalion Chief salary and possibly moving it up from, I think it was EM-3 to EM-5 or something. What ever happened to that? I really don't know. I haven't been keeping up. CHIEF ROSARIO: That's still in litigation as far as those that chose to go the legal route on that. So, that pretty much suspended our ability to move forward with any changes on that because there's still an active legal matter for that. MR. CHUNG: So, the legal matter is holding up everything else? I mean, who's driving that? Corp. (Corporation) Counsel or you guys? CHIEF ROSARIO: We do everything with the recommendations of Corporation Counsel because they're looking out for the County as well. MR. CHUNG: Yeah, but you were in favor of that, right? CHIEF ROSARIO: Yeah. I'm in favor of adjusting the rates to match the statewide. Well, I shouldn't say statewide because Kauai is even further behind us. But it definitely improves our ability to retain and also promote people up to the level. MR. CHUNG: Right. Yeah, okay. Well, hopefully that can be resolved soon. Thanks. CHIEF ROSARIO: Thank you. Page 53 FC-8 April 16,2019 CHR. DAVID: Thank you, Chair Chung. Anyone else? No? Okay. I think, if everyone else is done, I just have one question on that budget amount. Chief or maybe Melanio, the fire protection, which includes EMS (Emergency Medical Services), the total amount is 42,128,218. Is that all salary and wages? Or is that salary and wages and overtime, or ? MR. LORENZO: Salaries and wages and funding for operations for EMS. CHR. DAVID: Okay. All right. I think I've gotten my questions, I mean, I'm going to yield at this time, and thank you folks for coming today and for all that you folks do. Thank you very much. CHIEF ROSARIO: Thank you, everyone, for the opportunity to answer your folks' questions, and we're always available for follow-up questions as well. CHR. DAVID: Thank you for the invitation. Council Members, any recess before we start with Public Works? MS. LEE LOY: Aging. CHR. DAVID: I mean Aging, sorry. No? Let's go, okay. All right. Gentlemen, we're going to start with the Office of Aging. Mahalo, everybody. (6) Office of Aging (Note: At this time, Aging and Disability Services Manager Nicolas Los Banos and Administrative Services Assistant Christina Raine came forward to address the members of the Committee.) CHR. DAVID: Aloha and welcome. Can you please identify yourself? MR. LOS BANOS: Aloha kakou. My name is Nick Los Banos, Aging and Disability Services Manager for Hawaii County Office of Aging. This is my colleague here, Christina Raine. She is our Administrative Services Assistant. So, following Fire is a great place to be being that we're so tiny. I don't really have anything really much to share today except for if you have a few questions. But in general, we're here in place of Dr. Alameda who is at the Aging in America conference. He actually had a presentation yesterday, which was really, I think as long as I've been here for the ten years, the first time the Office of Aging has been invited and accepted as a presenter at a national conference. He is presenting on the East Rift Zone recovery efforts in partnership with Brandee Menino from Hope Services is there, as well as Paul Norman from Neighborhood Place of Puna. So, I heard it went really well yesterday. So, we're really proud of that. So in his place, you have us. Page 54 FC-8 April 16,2019 In general, our budget is pretty small, about$4.1 million overall. About 19 percent of that is County funded, salaries and wages being the biggest piece. Like I said, I don't really have anything too much to share, but I'd love to hear any questions that you might have. I know that Dr. Alameda was trying to make it around to all of you. If you haven't had a visit,please let us know. We're more than welcome to come and talk to you and your staff. CHR. DAVID: Thank you very much. I believe Ms. Lee Loy has a question or questions. MR. LOS BANOS: Sure. CHR. DAVID: Go ahead, Ms. Lee Loy. MS. LEE LOY: Thank you, Chair. Nick, thanks for being here. And you're right, Dr. Alameda was making his rounds, but some of this we do have to just have for the record. So, I'm looking at your budget, and then you have program expenditures. I see in the budget for 2018-2019 and then 2019-20, there seems to be a big jump from salary and wages, operations and equipment. Can you share with me, and I'm assuming it's because of the bargaining unit contracts and some of the other things. But if we could just get some of that information for the rest of my colleagues? MR. LOS BANOS: Sure. Thank you for your question. MS. RAINE: I can help with that. So, we did add some CHR. DAVID: Excuse me, I'm sorry. Could you just identify yourself for the record? Thank you. MS. RAINE: Oh, I'm sorry. Christina Raine, Administrative Services. So, we did have some new positions that were filled this past year, and so I think that would account for a lot of it. Was it specifically in the program budget that you were ? MS. LEE LOY: It's on page 10 from your program expenditures. MS. RAINE: Okay, yes. So, the majority of that would have been the salaries and wages for the new positions. They were actually created, I believe, two years ago but filled in this past year. And then also, the operations are just increases in services that we're providing mostly through grants. MS. LEE LOY: And then the equipment one. That one goes up another $40,000. Page 55 FC-8 April 16,2019 MS. RAINE: So, we did add some computer equipment. We do have a pretty robust database system that we use. I think it probably was related to that. But that's really the only equipment. We don't have new vehicles or anything like that, so it would have been based on computer equipment. MS. LEE LOY: Some of the other questions that my other colleagues have asked really is about creating synergies, and you just touched upon it with transportation. So my kind of overarching question is, where in the budget does it create this collaboration across other departments? Transportation is a big need for our kupuna. Share with me how you guys are trying to create those synergies. MS. RAINE: Go ahead. MR. LOS BANOS: Great questions. So, one thing that has always been a little bit of a confusion is the difference between the Office of Aging and the Elderly Activities Division under Parks and Recreation. That just goes to show the education, the efforts we have to increase. But in terms of the partnership there, that's probably our biggest one. They are the providers of transportation through our Title III, Older Americans Act, Federal dollars. So, they have essentially handled that islandwide for anybody who is 60 and older. The nutrition program, another program that is under the Elderly Activities Division, is also funded through our Federal grants for your congregate-meal programsI'm not sure if you've been to the one in your area—as well as our home-delivered meals. So, that would be the two largest county to county type of partnership, driven by those contracts of course, to do service. MS. LEE LOY: You just mentioned the congregate-meal sites, and Ms. Kierkiewicz has touched a lot upon strategic planning. We recognize that we have an aging population. There's a lot of talk about the silver tsunami, and we know it's already here. So, my question is, what strategic planning are you guys doing to look at other congregate-meal sites? Because, I'm looking at the trend just in Puna alone and the growth there. Share with me some of that strategic thoughts going forward on providing meals, especially in our growing areas like Puna. MR. LOS BANOS: Sure. Okay, great question. So, like I think everybody knows, the population is aging quickly and largely. As far as the congregate-meal sites, those programs are really centered around, if you think about it, those plantation-type of communities. Our elderly, I mean, I think about my mom who is still working at the DMV(Department of Motor Vehicles), and she's in her 60s and she's like, "I'm not going to go to that," right. So, we're trying to look at just the different types of—the demographic is changing, right? The 60-plus folks versus the 80-plus folks totally different cultures. Totally different needs in terms of what they need socially or what they just want in general. Page 56 FC-8 April 16,2019 In terms of those sites reallydefinitely, Puna is exploding out there. Unfortunately for funding-wise, the Federal government has been pretty much the same for as long as I've been here. So, it's tough to develop it from that standpoint. So, answering the question that I think you've asked from a lot of other departments is really looking at what kinds of things, if money wasn't an issue, we would look at is definitely things like that. You look at those people who participate in these congregate sites, they're the folks that are just making it into their 60s. They're still very involved in the community. And that's one of the biggest indicators of community health is keeping people involved in their community. So, they talk a lot about those sites being not really about the congregate meal as much as it is about just being with others in their community, and really trying to keep that close-knit nature of what our Big Island is known for. In terms of strategic planning, we're actually still finishing our four-year plan that we are required to do for the Federal and State government folks. And so, in there, again, it's based on the funding we receive. So, it's really hard to say in terms of how we would do it, but we definitely do the surveys out there. We have a really great person representing that area on our Committee on Aging, Frankie Stapleton. She did her surveys. So, that was really helpful. So, we definitely know that the growth is out there. It's really hard to say as far as development. It would have to be a perfect example of partnership with the Elderly Activities Division because those are the folks that are going to staff it and run those centers. MS. LEE LOY: Sorry, Nick. I'm just going to lean in a little bit more, because I hear what you're saying but I'm trying to get some tangible connection, right. So when we look at a congregate-meal site I hear the funding piece, but I want to hear if there's already a County asset that we could help bring some of that Title III money to help enhance, one, a County asset that we already have, and then increase capacity for it. Do you have any thoughts on that? MR. LOS BANOS: I think it's—for example, Puna has the Kea`au site and then the next one would be the Pahoa site. The next one after that would be Ka`u. So I think it's just,part of it is the geographic nature, right? I mean, if we're looking at where to put it, you folks know how different just HPP (Hawaiian Paradise Park) is from further down in Pahoa. And so, it would be having to go to them and really look at what our clientele wants, and where would be most advantageous to them. During the sheltering at the center in Pahoa, we moved it to the Ainaloa Longhouse, and that was a huge issue for some people who are used to going to that one site in Pahoa. So,just something small like that, which was temporary, it Page 57 FC-8 April 16,2019 really goes to show we really would have to go to our people to ask them what they would want and what would work for them. So, it's hard to say. MS. LEE LOY: Has any thought been given toI get it. We've got to meet the needs of them. Some of them can't drive. But overlaying that with our Mass Transit Master Plan as we identify critical carrying routes. Has any thought been given to that? MR. LOS BANOS: I know that in the past we've tried to do that with Mass Transit because it makes sense. I mean, a lot of the clientele riding the public transportation through Mass Transit or ours sometimes cross over. It totally makes sense. I think Mass Transit has had a lot of turnover. So, I think maybe it's a good time to definitely revisit that because transportation is probably the biggest thing we see in our surveys, and it's also very expensive. So, thank you for that. MS. LEE LOY: Yeah,please go cross-collaborate with other agencies. MR. LOS BANOS: I totally agree with you. MS. LEE LOY: Okay. Thank you, Nick. You're off the hot seat. MR. LOS BANOS: Oh, no. Any other questions, though? For you? MS. LEE LOY: Thank you. CHR. DAVID: Thank you, Ms. Lee Loy. Mr. Richards, go ahead. MR. RICHARDS: Okay, back on the hot seat. MR. LOS BANOS: Okay, still warm. MR. RICHARDS: Echoing, spring boarding, considering what Council Woman Lee Loy was just talking about, your funding, you don't come in for supplemental. I get it. Last year if you recall, we were having a conversation about what they call the silver tsunami, and you said you've had some surveys. So, looking at that. And we know our population is aging and we know our population on the Big Island, the demographic is shifting where we're having a larger percentage as I understood. That plays into future funding. And again, echoing what was said, collaborating between other, like Mass Transit, because we do know transportation is a big issue. Are you working on projections of what that population of the junior kupuna age, right, and thereby senior kupuna-aged people, what that's going to look like this year versus five years from now versus ten years, as opposed to ten years previous? Do you have those numbers? Page 58 FC-8 April 16,2019 MR. LOS BANOS: That's a great question, and I'm going to use that term "junior kupuna"because you honestly will see that. The comment we hear often when we introduce our services to someone who is maybe 60, 70 years old is, "That's for the old people." Okay. But with that said, you do have a lot of people in our community in their 90s and in their 100s. So, I get it. In terms of when I started, there were about 43,000 people in that 60-plus age bracket. In about 20 years, it's going to be above 80,000. So, we definitely are looking at that. A lot of our funding comes down via a type of formula. It's an intrastate funding formula that they do across the entire State. So, it's essentially looking at certain demographics, population changes. A lot of that comes from census as well. That's how they divide the funding up in general. As far as the silver tsunami, I think the thing that the State got excited about, I remember maybe about seven years ago when that became the term, you're looking at people who are aging into the aging population, 60-plus being that threshold. They're not the ones that are going to be using a lot of these expensive, high they're not going to be the ones with the high need. Right? These are active folks in their 60s and 70s, and a lot of them into their 80s, who aren't going to be needing those expensive daycare-type services, in-home hands-on types of services. But the Legislature did bump up, since I've been here, what's called "Kupuna Care" funding. So, a majority of our State funding goes towards those types of services because the funding that we get from the Federal government is quite small when they chop it up to Hawaii County. So, the Legislature has already looked at that, injecting a lot more money for those, for lack of a better term, more frail individuals who really are trying to stay at home to stay in the community with these services coming in versus being placed in a care home or a skilled nursing facility, which costs thousands more per month. So, in terms of projecting for that, that's what that four-year plan that I mentioned is really looking at in four-year chunks. But the State Legislature has been really supportive in general in terms of looking at what we might need across the State. So, we're lucky about that. MR. RICHARDS: Okay. And the reason I bring it up is because we're not just talking about this here. We're talking about what's going to happen two, three, four years from now, and somebody from this Council will be sitting on that and make those decisions. So, having that information. What has been stated by Councilwoman Lee Loy? Good information affords us good decision-making? And I ask that question, all kidding aside, because if we know that's coming towards us, we can start better planning for that. Page 59 FC-8 April 16,2019 MR. LOS BANOS: Yes, I definitely agree with you. We definitely will be sending you folks our four-year plan, which has a lot of our projections for the next four years. MR. RICHARDS: I've looked at the four-year plan. An executive summary of those numbers would be far better than the four-year plan. MR. LOS BANOS: Okay. Maybe we'll tab the most important parts. MR. RICHARDS: That would be helpful. MR. LOS BANOS: Yeah, okay, no problem. MR. RICHARDS: All right, thanks. I yield. CHR. DAVID: Thank you, Mr. Richards. Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. Hey, guys, nice to see you again. MR. LOS BANOS: Hello again. MS. KIERKIEWICZ: Are there any noticeable differences between the current strategic plan and the one that you're crafting for the next four years in terms of programs and services? MR. LOS BANOS: Programs and services, not really. A lot of our initiatives are decided together as a State. So, we work closely with the other offices of aging across the State, really looking at what it is in general that we might need. It really helps us go to the Legislature and ask, I guess, as a group so that not really in terms of the initiatives. As far as specific programs, of course Hawaii County has done a couple of things over the years that are not in line with, you know, not necessarily because we're going against what the statewide group wants to do but just answering to some of the things more specific to our island. A blessing in disguise, all those disasters over the last few years really pushed us to be creative and think innovatively about some of our programs. Right now, we're—we did a couple of years of a contract with HOPE Services and working with APS, Adult Protective Services, to look at folks who are getting discharged out of hospitals with no place to go, right. So, elderly, you know, that revolving door at the hospital. We did our paramedicine program with Hawaii Fire Department, where they're going in to do almost like a beefed up safety check. When somebody who is elderly, maybe you're not hearing from them or maybe we know they got discharged and, who's checking on them? Sending somebody out to do that with that medical expertise in case they find somebody who needs that care. Page 60 FC-8 April 16,2019 So, little things like that. We don't really have a lot in terms of our plan, but internally, we do have some little things like that we've tried in the past and we definitely will try in the future. MS. KIERKIEWICZ: And the programs that you have in place now, are they driven by what's needed in the community? Or are they created based on the kind of money you're able to get from the Federal government? MR. LOS BANOS: So, I'm going to say the majority of it is driven by the funding source. So, the Older Americans Act and our Kupuna Care funding from the State Legislature, they come down earmarked for specific services. So, it would be up to any kind of administrative funds to do some of those other things. MS. KIERKIEWICZ: So, I'm looking at this, the proposed operating budget. And under program highlights, I see lots of numbers in terms of folks you were able to serve. That doesn't really give me any perspective on what the issue is. Do you have that information? MR. LOS BANOS: The issue in terms of what the services are per ? MS. KIERKIEWICZ: Sure. Yeah, I mean, if there is a MR. LOS BANOS: Okay. So, like an output versus outcome kind of thing? MS. KIERKIEWICZ: Exactly. Is that something that can be provided, or is it in your strategic plan? These numbers are great, but in context of what you're serving legal counsel, estimated to serve 380 individuals, but how many islandwide actually needed help? Was it 5,000? Was it 10,000? Because, then we look at 380 and we can see, okay, we're really not making a dent in the overall issue. MR. LOS BANOS: Right. Okay, so the first part, I'm going to say in terms of just in general how we plan, we definitely look at what the outcome is versus the output. I mean, we can transport 5 people or 500, but if it really got them that access to something that they needed, that's a win. One of the big things that is happening or across the health and human services realm is really looking at patient-centered care. In the past, it was a lot of what money do we have and what can it buy. That's still important to us. But I think the biggest driver right now for a lot of what we do is what the people come to our doors with, what they call us with. And it's changed a lot of how we work. In terms of planning, the outcomes—one of the biggest populations we physically work with or get calls with or talk to is our caregiver population. The elderly are not the first people to raise their hands and say, "Help me. I'm losing my independence." So, we get a lot of children, nieces, nephews, or just neighbors Page 61 FC-8 April 16,2019 out of good, you know, the kindness of their heart calling in and trying to figure out ways to help their family or friends. So when you look at the outcome, it's really trying to get the community, I mean, with whatever we have program-wise to do exactly that. It's like, you know, refer your neighbor or tell us what you see. We can't be out there at all times. Really, when you look at the example of legal services, I mean the biggest outcome there, a majority of what we get are really to help people establish power of attorneys, their wills to make sure their end-of-life planning is secure or at least in the hands of somebody that they actually trust. And yet it does sound small, 380-something. But again, a little bit of it is limited by funding. We did change a little bit of our contract, how we did our contracting with Legal Aid Society that's our current contractor to really look at what is the need. We used to give them well, we gave them a price-term contract this past contract year, which is a little different, right? We said, "For every hour you do in terms of legal contact, we'll pay you `x' amount of dollars." So, it's really shown the true need. Whereas before, capitating it at whatever the grant is, it could be a little bit false, right, because they're trying to fit it in there. So, a lot of those types of internally looking at the way we allocate our funding, it's hard when it's needs based. But things like that really show us what is actually out there. One thing that we are doing a lot better on, I think, in the last couple of years is really looking at needs versus what we can do. Having a waitlist is not necessarily a bad thing, where in the past it was like, "No. Don't show them that you can't afford it." But I'm from the, you know, we're thinking, "No, that's how you prove that the need is growing." Right? So, internally,just changing the way we look at how we fund things. I mean, that's always something we consider now. And it's different for every service, I think. It's really hard to say. But in general, it's just keeping the community healthy as possible. One of the things they used to say from the Aging program's perspective is "prevent." Prevent institutionalization. Right? But we have to be honest that most people will get to a point where they need that care, right, that 24-hour nursing care. But what we're doing is trying to figure out ways to keep services in the home, whether it's formally through us, through maybe Department of Human Services, or even just family, friends informally to see if we can keep them home as long as possible. Right? MS. KIERKIEWICZ: So, knowing that the aging population is growing and you're crafting these strategic plans, if the funds are limited from the Federal side, I mean, what do you do? How do you address a growing problem with limited resources? Is any thought being given to how we pay for that? Page 62 FC-8 April 16,2019 MR. LOS BANOS: So, that's a good question. So again, I'm going to go back to how the tsunami that's ebbing in right now is really those younger people who are still active, still working, still volunteering, still playing softball and all those things. Where the big cost comes in aside from transportation is really those in-home services, those hands-on services that really keep people in their home as long as possible. Planning for that is really tough. Like I said, Legislature has been really trying to fill that gap that we're missing from the Federal government unfortunately, the Older Americans Act. We're lucky that it keeps getting reauthorized, but it doesn't come down with a lot of extra funds. So, honestly, in the time I've been here, it's really the State really picking up that and proving to the Legislature that what we do is of value. MS. KIERKIEWICZ: I see tremendous opportunity ahead of us right now. I mean, we have junior kupuna becoming senior kupuna, right? MR. LOS BANOS: Yes. MS. KIERKIEWICZ: And you think about how you want to prevent them from going into lifecare facilities. You want them to be as independent for as long as possible. There's a lot of synergies that Ms. Lee Loy touched upon, but I think we need to be more deliberate in thinking about. You've got the healthcare arena. I mean, you've got folks that are in recreation, healthy eating. And I just feel that there is a lot that can be done by your office to convene conversations with the private sector and the community where we're all rowing in different canoes and we're staying in our lane and we're doing our kuleana, but we're all rowing in the same direction to that shared outcome. MR. LOS BANOS: Right. And we do a lot of that. There are several committees that I work on in terms of just improving healthcare systems in general. I'm not sure if you folks know about the new law that was passed in Hawaii where interdisciplinary teams can now work on cases unredacted if they sign on to this agreement and the patient signs the okay in the beginning. That really helps with flow in terms of if somebody comes out of the hospital, you have five agencies going, "Hey, let's help him,"but it's like, "Well, wait. If we all do it together, I think we can, you know, not just make it more streamlined for the patient but save on cost." So, there are types of committees like that. One of the biggest increases in patients we're seeing is really from those discharges where you have hospitals, facilities looking for a place to put people. Medical care, of course, is driven by insurance,payments. And so, when that patient is hard to place, we get a referral and it's really tough because you have somebody's life and safety on the other side, not necessarily—we don't look at them as just another insurance claim. That's somebody's mom, somebody's grandma. It's a little bit different. So, we are having conversations with facilities. Page 63 FC-8 April 16,2019 Actually, a big part of what we do is working with the Medicaid providers through the Department of Health and Human Services. So, they have equivalent services to ours, and a lot of times our clients cross over. So, it's just even doing that where if somebody contacts us, we do a little bit of work in the forefront to say, "Hey, you know what? This is the appropriate service for you. Let's try and get you in contact with them," instead of having them roam around and try to figure it out on their own. So, there are a lot of partnerships that we are doing out there with private agencies, nonprofits, because we realize exactly that. Like these are the same people. You can get a case and go, "I think I know who that is, because seven agencies have already touched this person's life." So, yeah, we're definitely working on committees like that. MS. KIERKIEWICZ: Okay, great. And I just hope that more resources and programs are going to be put directly into communities that have big populations. When you think about Puna or you think about Ka`u, rural, very difficult I think—lots of barriers to access and critical services. So, even putting these services on wheels. I know mobile health clinics are very popular these days. The last question I had, back to program expenditures. It's not clear to me what's actually funded from the General Fund versus the grant monies. So, are you able to just kind of look at that and skim off the top of your head? MR. LOS BANOS: Yes, sure. MS. KIERKIEWICZ: Like equipment for instance. Is that coming out of General Fund monies, or is that Federal grant money? MS. RAINE: Probably everything is a mix of both. So, out of the General Fund, about$742,000 is salaries and wages and then our operating expenses is only about$19,000. So, that includes a little bit of equipment, like a photocopier, that kind of thing. So, it is a mix. We do try to use the grant funds as we can. But there's also items in our General Fund budget for committees. So, we have two Mayor's committees. We have the Mayor's Committee on People with Disabilities and the Mayor's Committee on Aging. And so, some of their expenditures are also in our General Fund budget. MS. KIERKIEWICZ: Do you go through IT for purchasing of your computer equipment, or do you do that in-house? MS. RAINE: We do that in-house. We do utilize the price-term agreements that are part of the County Purchasing Department that we do most of it in-house. We're fortunate that we have a data analyst. I tend to think"Information Analyst" is his title. A lot of our stuff is driven by data, and so that's a very Page 64 FC-8 April 16,2019 important position for our office. And so, he also assists with our computer buy, he makes suggestions on things to buy and our network and everything. Our network is actually outside of the County network. And then a few of us who need access to FRESH (Fiscal and Resource Enterprise Software for Hawaii) have County computers as well. MS. KIERKIEWICZ: Yeah, I think there is about four different departments or agencies that are outside of being managed by our IT department. I find that very interesting. Anyway, those are all the questions I have. Thank you again for being here. I appreciate it. MR. LOS BANOS: Thank you. I appreciate the questions. CHR. DAVID: Thank you, Ms. Kierkiewicz. Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you. Ms. Kierkiewicz just touched upon it, because we have other departments who provide us the breakdown on where all the funding streams are coming from. I've been roaming back and forth here looking specifically for that information. So if you could retool your program expenditures to show the breakouts of the General Fund, along with the various grant funds, because I'm curious to know if we're expending all of the grant funding or are we looking at Fund Balance carryover that's going to go especially for the grants. Because, my primary question is, if there's a lot of money in our grant funding that's getting carried over, why are we not spending it? So, if you could retool that and maybe provide a memo back to this body specifically with that. Because I know Ms. Kierkiewicz and myself are learning a lot about grant funding and some of the restrictiveness of it. So when I hear you folks kind of putting some of it to match with General Fund, I want to understand how restrictive those grants are. So if you could just forward that to us. Thanks. MR. LOS BANOS: Sure, definitely. Thank you. CHR. DAVID: Thank you, Ms. Lee Loy. Anyone else for Office of Aging? No? All right. MR. LOS BANOS: I did want to close by—if I may? CHR. DAVID: Sure. MR. LOS BANOS: I just wanted to thank you folks for your support. May 3rd is the Older Americans Month annual event. It's going to be at the Hapuna, what is it called now, the Westin Hapuna Beach Prince Hotel I think it's called. It's islandwide. We're busing folks out there. It's an amazing annual event that's Page 65 FC-8 April 16,2019 held actually across the nation. We do it a little bit bigger I think. But thank you for your folks' support financially or just your participation. We appreciate that. In terms of collaboration, I just want to say one of the biggest things we're pushing across the health and human services field is really having conversations about end of life. Today is actually National Healthcare Decisions Day, meaning review your advanced healthcare directives. It's a huge partnership that we've taken on with community first, as well as Hawaii Care Choices, formerly known as Hospice of Hilo. So, things like that, really a small document like that really helps in your caregiving role. So, I encourage everybody to look at it today. So, thank you for your time. I appreciate it. Mahalo nui. CHR. DAVID: Mahalo, both of you, for being here today and for your presentation. Thank you very much. Council Members, do we need a break before Public Works? Five minutes? Okay. We're going to take a five-minute recess. All right, we're in recess. Recess: At 2:55 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 3:07 p.m. CHR. DAVID: Aloha, Council Members. Welcome back to the Special Meeting on the Committee of Finance. I'm taking this out of recess now. (7) Public Works Department CHR. DAVID: I'd like to call up Public Works Director Yamamoto and Deputy Director Simeon. (Note: At this time, Public Works Director David Yamamoto and Deputy Director Allan Simeon came forward to address the members of the Committee.) CHR. DAVID: Good afternoon, gentlemen. So,please identify yourselves for the record and then go ahead with your presentation. MR. YAMAMOTO: Good afternoon. I'm David Yamamoto CHR. DAVID: Welcome. MR. YAMAMOTO: Director of Public Works. MR. SIMEON: Allan Simeon, Deputy Director of Public Works. Hi. CHR. DAVID: Hi. Aloha. Do you have a PowerPoint by the way? Page 66 FC-8 April 16,2019 MR. YAMAMOTO: Yes. CHR. DAVID: You do? All right. I'm going to take a quick recess so we can set up your PowerPoint. Sorry. We're in recess. Recess: At 3:08 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 3:10 p.m. CHR. DAVID: Thank you, staff. We are back on the record. Mr. Yamamoto, you can go ahead. Your PowerPoint's ready for you. (Note: At this time, Mr. Yamamoto provided a PowerPoint presentation to the members of the Committee. For viewing of the presentation, please see the DVD copy of the meeting proceedings on file in the Clerk's Office or navigate to the Council's video archives online in the County's webpages at www.hawaiicounty.gov. A hard copy of the presentation is made a part of the record, see Comm. 117.8.) CHR. DAVID: Thank you, Director. Deputy Simeon, do you want to say anything before I ask for questions? MR. SIMEON: Yes. So it's not in the slides. Basically, we have about 350-something filled positions, of which about 125 belongs to Highways Division. We would like to make it clear that these same people who respond to the lava and all emergencies are the same people doing our resurfacing and also tending to other daily duties. Same thing with our Engineering and Building Divisions. We only have a set number of people trying to get the building permits done and also get their STIP (Statewide Transportation Improvement Program) projects and CIP projects out so we can deliver to the community. Thank you. CHR. DAVID: Thank you very much. Council Members, any questions for Public Works? Mr. Kaneali`i-Kleinfelder, go ahead. MR. KANEALI`I-KLEINFELDER: Thank you. Good morning. Good afternoon, sorry. How do you guys prioritize STIP projects? MR. SIMEON: Yeah, so for STIP projects, they have to be included on the STIP list. So what we do is first of all, we have to prioritize as far as the projects. So we have to look at what projects need to be tended to first, because the program now is not like before where they allocate so many millions of dollars to our island kind of automatically. Now we have to compete, per se, with the different projects islandwide or statewide. For example, if DOT (Department of Transportation) has a bridge that is more in need of the funding, guess which one they will fund first. Page 67 FC-8 April 16,2019 So as part of the prioritization, we have to show that we are managing our assets properly. Part of that is the data collection program that we have availed to in collecting data for our roadways. So for our STIP projects, which consists of about 200 miles of our roadways, again those have to compete within the State and also within the counties as far as funding. So, once that is set, we submit that to DOT for funding so it gets onto the STIP list. Also, the State DOT comes in to different islands and also present the STIP program. And at that time, you can also present or suggest or recommend projects that can be on the STIP. However, though, the initial has to come from Engineering or Public Works for us to recommend those projects to the State DOT for inclusion onto the STIP project. MR. KANEALI`I-KLEINFELDER: Okay. And then, sorry, as far as the department, I mean, how are you with the size of your department, David? Do you feel like there is too much in one department under one roof? Do you feel that it could be divided in any way? Or do you feel, as the Director, you can keep up with the needs of Building, Engineering, Highways, and everything? Or is it I went to the All Highways meeting with Neil, and it was there's a lot of guys. And he's taken care of a lot of roads. In my head, I'm trying to see if is there too much going on in one division. That's what I'm asking. MR. YAMAMOTO: One division? MR. KANEALI`I-KLEINFELDER: In one department. MR. YAMAMOTO: I'm not sure yet. I'm still trying to get a handle on everything. But there is extremely a lot going on, and these disaster recovery efforts and disaster responses just lends to the pile of things going on, and moving parts that we have to manage. We try, though. We try our best. MR. KANEALI`I-KLEINFELDER: Okay, thank you. As far as the Building Department itself, is there an ask for more people to do permitting and to work through permit review? MR. YAMAMOTO: Yes. We asked for two additional plan review positions. I think it originally was in a supplemental budget, but I think at this point, they might be including it in the revised budget and it might be going in later on. MR. KANEALI`I-KLEINFELDER: And if you were to get those two people, would you say that we could expect permits to move faster through our County? MR. YAMAMOTO: I would say it would move a lot faster through the Building portion of the review process because we, you know, I can see the plans stacking up and we then trying to get the employees to agree to work overtime to try and get it down to a more manageable level. But it's a continuous battle of Page 68 FC-8 April 16,2019 monitoring how much of a backlog we have at the plan review process. And so, with these additional positions, we hope that we would be able to take care of that backlog and be more proactive in being able to assist the applicants more in as far as preparing their plans. MR. KANEALI`I-KLEINFELDER: Okay. And as far as EnerGov, what is that? That's already taken care of? That's in the budget adaptions and what we're doing with it? MR. YAMAMOTO: Yeah. EnerGov is delayed because it wasn't compatible with our software. So, they upgraded the software and we're hoping that it's going to alleviate the compatibility issues that were presented with the earlier version. So, EnerGov is going to be, hopefully, now targeted for release at the end of this year. MR. KANEALI`I-KLEINFELDER: And financially, all the money's been taken care of already? MR. YAMAMOTO: Right. MR. KANEALI`I-KLEINFELDER: No more costs? MR. YAMAMOTO: No. MR. KANEALI`I-KLEINFELDER: Okay, I yield. Thank you, David. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. Ms. Poindexter, go ahead. MS. POINDEXTER: Thank you, Madam Chair. David or Allan can answer this question. I'm concerned about the permitting fees in several areas: grading, stockpiling, and then we have the building permits. Because isn't it true that if somebody cannot wait to build, they'll go ahead and just go build and then come back for an "as built" and then pay? Do they pay double the permitting fee? Or how does that work? MR. YAMAMOTO: For work started without a permit, there is a permit fee. For at least the building, it's double the fee for the building permit. And for electrical and plumbing, I believe it's a hundred dollar additional fee for the electrical and plumbing work that might— MS. ightMS. POINDEXTER: So, are we having a lot of that happen because people cannot wait for their permits? MR. YAMAMOTO: I'm not aware of a great deal of it, but a lot of times they come in when they're trying to sell it and now the realtors are trying to get the permitting process squared away. Page 69 FC-8 April 16,2019 MS. POINDEXTER: I don't know the exact cost, but I was thinking even a little lower. And when was the last time we looked at the building permitting fees, grading and stockpiling fees? When was the last time we had an increase in that? MR. YAMAMOTO: I can't remember when the last fee increase occurred. I know it must be at least since they adopted the '91 Code, the UBC (Uniform Building Code) Code, but— MS. utMS. POINDEXTER: And I think we've got to revisit that, because a lot of times in government our fees are, you know, we don't look at it during our annual reviews and then we wait like ten years and we go, "Oh, my God. We've got to bring them up." Because, the costs have gone up,but we're not raising our cost of the fees to be comparable to what our, you know, what we're absorbing is our cost, right? MR. YAMAMOTO: Yeah. MS. POINDEXTER: And to me, if they're coming in, they're going to build first because they cannot wait. To me, it's like an expediting fee that they should be paying, which they're paying the double fee, which is still pretty low for them. So, why not go build and then come back later on as an "as built" and go sell, right? So, I want to look into that because that's where I think some of the funding for positions that could help where our revenue source is. So, I think we've got to start looking at those fees, but I'll check into that more. One more question. I think it was several months back, you guys talked about having a company look at assessing roads and how to prioritize. How is that going? I don't see anything in this budget for that. MR. YAMAMOTO: No, it's in progress. They started the survey work. They didn't complete it, and they had left the island to, I guess, tend to another project. But they intend to return in the fall to complete the roads that they didn't survey yet. MS. POINDEXTER: So, that contract was already entered into. MR. YAMAMOTO: Yes. MS. POINDEXTER: What was the cost of that? Is it—? MR. YAMAMOTO: The contract was for $480,000. MS. POINDEXTER: For the entire island. MR. YAMAMOTO: For the entire island of mapping roughly 800 miles of road. Page 70 FC-8 April 16,2019 MS. POINDEXTER: My concern there, and just so that you can note it with these companies, we have different associations that have different road committees within their associations. We also have, like, the Hamakua Safety Committee Roads and you have the one in Waimea and all. I want to make sure that they are talking to these people because we've done so much work in our communities. I know that Tim probably goes to the Waimea one. I attend Hamakua. I work with the associations and their road committees. I've taken and God bless him, Neil has always been gracious enough to come and help us do the assessments with them. I think it's been two years since I've done some. But I want to make sure that the work we're doing in our communities and the communities who know their roads best, yeah, have input on that. Because, you're having, I don't know who's coming and where they're from, but they're not familiar with some drainage issues that may cause undermining of the road, that the community members may have some information that they may find valuable to that. I find that's a lot of money too, so I don't know where you got that money from. Did you have to cut someplace to take, to pay for that? MR. YAMAMOTO: Well, it came out of the miscellaneous type of contract services to fund this thing. And I think maybe in as far as what this particular service does, it's a more objective survey where they're doing basically photogrammetry type LIDAR (Light Detection and Ranging), and they're basically taking a photograph of the entire route and then they go back and they objectively grade the road based on cracks and striping, and MS. POINDEXTER: Even with that, I still have concerns because, like I said, we don't know what's causing some of the undermining, if there's runoff areas or whatever. That the communities know best, yeah, what's happening, why the flooding in the low-water crossings. And the people who are doing that assessment may not be there at the troubled times, so they won't see as much. They'll see some cracking in the road, "Oh, we've got to fix that road,"but they may not know what's causing it, through waterflow or whatever. MR. YAMAMOTO: Yeah. This survey is not designed to look at that particular aspect. MS. POINDEXTER: Yeah, but that's why it's important to know that. Because if they're going to say, "Well, this road's got to be resurfaced," and you just resurfaced it when actually the road's got to be cut in a different angle or something for release of more water. You know what I'm saying? They need to speak to the people who have been dealing with this for years. Because you can come in, I mean, I'll give you a great example. Millions of dollars were spent at Laupahoehoe Boat Harbor, and it didn't last. We wasted all that money. Then, they came back in and said they're going to fix it. They came in, they tried, it didn't work, they lost millions again. But instead of listening to the people who Page 71 FC-8 April 16,2019 live there who told them, "No, the current is so bad that it's not going to work there. You've got to leave it where it's at." So, all I'm saying is we need the communities' input because they know their communities best. These people don't live on this island,probably. MR. YAMAMOTO: That would be dialogue to establish between the department and these action groups. MS. POINDEXTER: Yeah. Thank you. I just wanted that to be noted, though. Thank you. CHR. DAVID: Thank you, Ms. Poindexter. Now, I'm going to go to Ms. Eoff. MS. EOFF: Thank you, Madam Chair. Regarding the STIP, the last I heard, the Governor had a directive that STIP money was to be used for repair and maintenance of existing roads and not really for new capacity building. Is that still true? MR. YAMAMOTO: Yup. MR. SIMEON: Yes. MS. EOFF: Any idea about how long (inaudible)? MR. SIMEON: So, talking to our colleagues at DOT, that is still the directive. So, we had put together in Engineering, four-year resurfacing projects throughout the island for the roads that qualify for STIP money, yeah. MS. EOFF: So, (inaudible)years—at least another four years, then we won't see STIP money being used for new MR. SIMEON: Resurfacing. MS. EOFF: But not for new construction? MR. SIMEON: Not for new, yeah. However, though, the reason why we had put together a four-year program is sometimes there are monies that are not expended in other states or other counties, and they call that their redistribution money. If we have projects that are ready to go, shovel ready per se, then we can avail and get benefit from those surplus monies. One, for example, is the Mamalahoa Highway project that's going on now. So, after we got our portion for the STIP year, they offered us another $13 million of redistribution money. That's why we're able to get that project out in its entirety. So, we try to capitalize or do our best to get those extra monies as best as we can. Page 72 FC-8 April 16,2019 Also, working with DOT Hawaii here, because we are serving the same community, we have an understanding that as long as we keep the money here for our community. And I think we're good with that. So, we're coordinating with DOT, Hawaii District. MS. EOFF: Earlier, Mr. Chung noted that I've been a proponent and kind of pushing for the Ane Keohokalole Phase III to be completed. And as you know, the Palamanui development has constructed a portion that stubs out at Ka`iminani. And then we have Phase II that stops at Hina Lani. So, we have that missing segment, which is supposed to be part of the Mass Transit Master Plan as a trunk route for the bus. And it would connect and provide a much-needed additional alternative lateral road—definitely would help traffic flow. And I think within the next five years, it's going to be really important that we start that. So, I know we've talked about the awarding of a contract for plan and design. Is that in progress still? MR. SIMEON: No. The status of the project is we have a consultant who's going to do the archeological survey. So, that is in place. MS. EOFF: So, currently, they're conducting the archeological survey? MR. SIMEON: Yeah, that's a contract that's on now. So, it's important to know where the archeological resources are because that's what we're going to design for, yeah. MS. EOFF: Okay. And so, we can keep moving forward on those preliminary steps so that we will be sort of shovel ready when the funds become available. MR. SIMEON: Yes. And one way to also facilitate our new projects is to fund the project design environmental with County money. Design it so that for construction, it's eligible for the STIP projects. MS. EOFF: Oh, okay. And so, is that something that our GET (General Excise Tax) Surcharge funds can help with? The extra monies that will be coming in? MR. YAMAMOTO: I'm not sure on how the GET distribution is going to be setup. MS. EOFF: There's some affirmative head nodding in the back, but I'll take that as a good sign. Anyways, I just don't want to let go of the forward momentum on that, and I really thank you for the efforts you've put in thus far. MR. SIMEON: No, thank you, because I think being proactive as far as completing projects small scale, big scale, and medium scale. So, depending on the money that comes in, we can put forward different projects that's ready to go. Page 73 FC-8 April 16,2019 MS. EOFF: Thank you very much. CHR. DAVID: Thank you, Ms. Eoff. Mr. Richards, go ahead and then I'm going to go to Ms. Kierkiewicz. MR. RICHARDS: Thank you, Chair. Thanks, Allan. Thanks, David, for being here. A couple of different things I wanted to ask you. On your public safety disaster, your fiscal year increase went from $500,000 to $1.7 million, so a $1.25 increase. Can you articulate why the ask increase? MR. YAMAMOTO: Actually, we were evaluating that, and we may redistribute some of those funds into other areas. We still are assessing how much resources we had needed for the disaster response that we did during Hurricane Lane and the lava event. And that was probably part of the driving force in establishing what is there now. So, we're going to refine it a little more by looking into that and being able to be assured that we will have the necessary funding available to respond to a disaster. MR. RICHARDS: Okay. So if I'm hearing you correctly, what it sounds like is, based upon this last year's experience with volcano and hurricane and all that, it triggered putting money in that but then you're rethinking that. Is that—? MR. YAMAMOTO: We're going to fine tune it based on evaluating how much resources it took to address the two disasters that we had and for being prepared for the future. MR. RICHARDS: Okay. And shifting gears a little bit, on your Highway Maintenance, you have $16.7 million listed. How many miles of paving, granted because that's not all for paving, but how many miles of paving would you conceivably do with that$16 million? MR. YAMAMOTO: We are projecting an increase from 20-30 miles. MR. RICHARDS: All right. And that doesn't include the STIP program. Is that correct? MR. YAMAMOTO: Yeah, that doesn't include the STIP. MR. RICHARDS: Okay. And then I did notice that the upper Waikoloa Road was put on the STIP. Again, echoing my concern for that. Traffic has substantially increased in that area. And so putting that forth I think is really important because I'm concerned about that surface. Shifting gears a little bit, and I do appreciate, Allan, what you're saying, what you had mentioned, having shovel ready if money becomes available, we can jump on Page 74 FC-8 April 16,2019 that. I think, what did I see, $6.7 million to get that done. Is there any engineering that we have to do ahead of time or anything along those lines? MR. SIMEON: Yes, engineering has to be done, but we're doing it in-house. We have the capability of doing those projects in-house, except if there is—for some reason, we need to consult or hire an environmental consultant for whatever reason. But we don't foresee that being that the SMP (Special Maintenance Program)project or program that DOT has is only resurfacing what is existing. MR. RICHARDS: Okay. And that's what we're talking about here. So okay, I appreciate that. So, thank you. And then shifting gears a little bit. Listening to the conversation concerning the building permits and EnerGov I think is the computer program. The conversation we had, the information we received previously, that would be coming online sometime this spring, and now, I think I heard you say it looks like the end of the year. So, we were talking about a six-to eight-month delay. Can you articulate on that? My concern, and this is going back where, a little bit hard on housing, going be a little bit hard on you guys too. This whole building permitting process, and it was started a little bit in the conversation. Our economy needs help. We took quite a hit economically last year, and part of that recovery is getting our construction, getting our homes built. How do we facilitate getting that going quicker? And I think Mr. Kaneali`i-Kleinfelder asked about the staffing and the backlog you mentioned, David. Where are we with that? What resources are needed to get that caught up so we're quite efficient? And this is something that we've batted around for probably the last 18 months to two years, ever since I've been on the Council. We want to move the needle. We want to make a difference. So, I'm asking you how do we do it, but I'm also telling you we've got to do this. So, talk to us. Give us some information. MR. YAMAMOTO: We've been long looking at how to address the building permit process, and it's a complicated process being that there's multi-agencies that participate in the review process. And each agency has its challenges in as far as having to move the permit through their review. And for at least Building, we've been focusing on what can Building do to facilitate its process or its part in processing these permits. So, that's where the two plan review positions were requested, and hopefully we'll get that. EnerGov, as I mentioned, had discovered a software-compatibility issue with the GIS (Geographic Information System) software that we currently run. So, they had to upgrade the EnerGov software to be able to be compatible with the GIS software. But without that, we didn't want to roll out an incomplete system that both the public as well as the employees would be frustrated with, being that they would have to work around the defect until it got upgraded. So, we decided to Page 75 FC-8 April 16,2019 defer rolling it out and makeg sure that we have a working system that meets the expectations before we put it live. MR. RICHARDS: I'm a little bothered by the fact that there's incompatibility between software. And I don't know who made the selection or when the contract was done. And I appreciate the fact that the last thing we want to do is have a computer program that slows us down further. I appreciate that. But the expenditures for the computer program have been made. And, I guess, the compatibility, is this a software thing that someone is fixing? Do you have people dedicated to getting this done? Granted, anytime you start a new computer program, there's a learning curve. I got that. But I'm aware of another situation where the software is actually slowing down the process, and that bothers me. Talk to us about this. Do you have dedicated staff that's actually going to get this thing fixed, or is this nebulous? I'm a little uneasy with what you said. MR. YAMAMOTO: Yeah, we have dedicated staff as well as IT and Planning. They have a lot of staff working to address and correct the compatibility. And they currently are, I think, in the process of testing. So, hopefully we'll get over that hurdle, and we can get back on track and get our training, as well as being able to roll this software out. That's the last thing. We already experienced one software failure, and it was painful to go through. When we initiated the MagNet software, it didn't live up to what we had expected, and the staff got disenfranchised by its failure, as well as the public. We're working one day and the next thing, they no longer have access to see what the status of the permit is. So, it's very disheartening to go through that, and we didn't want to repeat it. And that's why we're making sure that the new software is fully functional and meeting our expectation before we roll it out. MR. RICHARDS: When can we hear an update on what the status is? This is now April. I'm thinking the first of June? I realize it's going to take you some time to completely roll it out, but I don't want this thing to be on the back burner if this is MR. YAMAMOTO: Oh no, it's not on the back burner. I mean, IT is stressed out and Planning and Building are stressed out trying to make up time as much as possible to get it out sooner than later. But the primary objective is to make sure it's working correctly before we roll it out. MR. RICHARDS: Okay, so I'd like to have an update to the Council as a whole by, say, June 15'h as just a status update,just so we keep it on the forefront, or as my Councilwoman said, "on the barbecue." Keep it moving forward. Okay, at this point I'll yield. Thank you. I appreciate the information. CHR. DAVID: Thank you, Mr. Richards. Ms. Kierkiewicz. Page 76 FC-8 April 16,2019 MS. KIERKIEWICZ: Thank you, Chair. Yes, barbecue time. Let the grilling begin. Thank you, guys, for being here. And I appreciate all the work that you and your staff have done to support our island, and especially Puna during the recent eruption. And one of my questions will be about lava recovery. But I want to first go back to the Building Examiner positions that are being requested. So, in taking a look at this operations budget, it says currently, that the Building Division expenditures are $5.4 million. But then, I take a look at how much is coming in for building permits, it's about$1.8 million. And I know that work is also done to do inspections. Roughly, that adds up to about$270,000. So, the expenses are $5.4, and the revenue is $2 million. So, I wonder if adding two additional positions will help us to make up that$3 million gap and maybe create like a sustainable funding of the Building Division through the permitting fees. Or is there more revenue that comes in to support Building? MR. YAMAMOTO: Actually, I think the building inspection part, their budget is $3,169,000. I think you're looking at the Building MS. KIERKIEWICZ: Division? MR. YAMAMOTO: Yeah, the Building Division, with more the Administration side and the General Services, Repair and Maintenance. They are broken up between inspection and Code compliance and then the other,just the General Services. MS. KIERKIEWICZ: But still the expenditures are a bit more than what we're bringing in. MR. YAMAMOTO: Yes. It has never MS. KIERKIEWICZ: Penciled out evenly. MR. YAMAMOTO: And we've been monitoring that in saying the permit fees should at least pay for the program that runs the permit program. But I think what the rationale behind not increasing the permit fee,being that Hawaii County has the least expensive permit fees in the State, we wanted to improve the permit process first. MS. KIERKIEWICZ: Okay, that makes sense. We have to improve ourselves to justify the increases. When you were talking about STIP (Statewide Transportation Improvement Program), Allan, I just wondered, you mentioned that a lot of the studies and engineering are being done in-house. So, does that mean that there are other projects and work that's not being done because time and energy are focused on these plans? And I wonder what's the total cost in preparing these plans and engineering studies so that they are shovel ready should the money become available on the Fed side. And is that work reflected in your budget? Page 77 FC-8 April 16,2019 MR. SIMEON: I cannot tell you at this point how much exactly, what they expended to get those projects out. And one reason why is that unless we have to go through all the timesheets of the engineers to spend time for lava, (Hurricane) Lane complaints, and STIP, I believe the Engineering budget that is in there is reflective to what we can do for the capacity to get those projects out. MS. KIERKIEWICZ: And you feel the Engineering budget is sufficient? I can't help you if you don't tell me. MR. SIMEON: Let me qualify. So, as far as the STIP projects with the resurfacing projects, we believe we have the capacity and capability to get those done, because those are simpler projects. It's basically surfacing projects. However, with the advent of the lava and Lane, that had contributed a lot of projects, in addition to the previous projects that we're doing and the complaints, we do need help to get those done. So for like permitting, environmental, bigger projects, we do need help from consultants to get those projects out. Once FEMA (Federal Emergency Management Agency) approves and obligates the lava and Lane projects, that's when the real work begins, because we had to push out those projects within the deadline. And we're hoping that we're going to get the help by then as well. MS. KIERKIEWICZ: Okay. That's helpful to know. And in looking at this budget, Deanna correct me if I'm wrong, but it doesn't reflect all of the recovery money that we should be expecting as a County. So potentially the budget's going to grow to maybe over $600 million if we take into consideration money from the State Leg. and the Federal government to support recovery. Because we're at about$573 right now proposed, and it doesn't reflect the $60 million from the State. And the reason why I ask that is because probably what's going to get reported in the news is here's this big budget, but I don't think people understand that we have to run a balanced budget. So, every time that there is money coming in, we also have to have an expenditure to match that. (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: You're correct. It doesn't include the $60, but we're appropriating that in the current fiscal year. So, it probably won't grow the fiscal year 2020 budget by $60 million, but there definitely will be additional funds added to that for recovery, for other grants, for other purposes. And I think Public Works is looking at adding additional—refunding some unfunded positions to help with the hurricane and lava recovery as well. Page 78 FC-8 April 16,2019 MS. KIERKIEWICZ: Okay. And those would be temporary or permanent? MS. SAKO: We're still evaluating that for the May budget. MS. KIERKIEWICZ: Okay, thank you. Allan, because you were touching on a little bit for recovery,just a real quick overview, that way I can direct constituents to watch the archived video, overview of work that your department is doing for lava and Lane recovery and just the timeline for action. I know that a lot of folks want restoration of(Highway) 132 like last year, but there is a very comprehensive and complex process that we need to embark on to ensure that we get full reimbursement for all of the work. So, not taking too much time but really quickly, everything that's involved for temporary and then potentially permanent restoration of roots and infrastructure related to lava and Lane. MR. SIMEON: Let me start with the lava recovery as far as roads. But first I'll have to qualify that Highway 132 is a Federal Highways project. And with that, we had to comply with Federal requirements. So with Highway 132, and also all the other roads that are inundated with lava, we currently have a contract and the work has begun for the survey work. So after the survey work, we're going to continue our design so that we can provide a detailed estimate to either FEMA or Federal Highways. Permitting is also ongoing. NEPA (National Environmental Policy Act) categorical exclusion process for the Federal funding for Federal Highways is ongoing. Our intent or our goal is to complete the temporary road for Highway 132 up to October 5h to benefit for the Federal Highways' 100 percent funding. Anything after that for the temporary work is all County money. After that, we also have an alternative study to qualify the different, or to see what are the different routes for 132. And based on that study, we either will make the temporary road as a permanent road, and the Federal Highways would fund 80 percent of that. But if the study proposes a new route, then they would fund 80 percent of that new route, if that's the direction that we're going. So, that's that. So again MS. KIERKIEWICZ: That's very helpful. Thank you for sharing that. And in regards to Lane, because the impacts were felt islandwide, and particularly upper Hilo, Hamakua Coast area, similar process that you're going through to evaluate damage to infrastructure and potentially what can be done to either improve or create new for those communities? MR. SIMEON: Yes. But before I go there, I just want to mention that for the FEMA lava damaged roads, because we elected to avail of the 428 alternative process project we are reminded that the money has to be obligated by FEMA before we can do any work on those roads. Otherwise, we may jeopardize funding by FEMA. Page 79 FC-8 April 16,2019 MS. KIERKIEWICZ: So, obligated in the sense that the Federal government needs to approve those projects before we act on them. Because if we act before they approve, then we may not get money. MR. SIMEON: That's correct. MS. KIERKIEWICZ: Okay, got it. MR. SIMEON: And now for Lane, yes, we are in the same process. So, we had with FEMA and HI-EMA (Hawai`i Emergency Management Agency), with our engineers and inspectors, they had gone to survey those damages. So, those were sent to FEMA and also, again, we are waiting for their approval for those projects before they can obligate the money. We are also working with NRCS (Natural Resources Conservation Service) for the Pi`ihonua Levee and also with Army Corps of Engineers for the Wailoa channel areas, yeah. So, we have a lot of Federal organizations that we are working with in getting this recovery done. MS. KIERKIEWICZ: Thank you. And it's islandwide recovery that we're having to coordinate and work on. In the last few years, we've seen a lot of natural disasters hit our island and just states and countries all around the world. You've been with Public Works for a number of years. What percentage of your time do you think has been spent on just responding to disasters and repairing infrastructure? I mean, I'm sure it's been a sizable increase in the amount of time you're spending on day-to-day operations and now shifting to how we help communities recover and rebuild. And I ask that because earlier today we had conversations around climate change and ensuring that we have that lens on in making decisions. So, I just wonder what's some of the strategic planning that your department is doing to consider the effects of climate change and the frequency, intensity of more storms that are bound to hit our island? Because if we know that's going to happen, then how do we build in a way that is more resilient and prepared to handle disasters? Because at the end of the day, it just costs so much to have to rebuild and recover. MR. SIMEON: For example, for the Pi`ihonua Levee Restoration project, we would include in the design some mitigation, similar to our bridges. It's important for us to, again, be proactive. So the inspection for those bridges is really necessary. MS. KIERKIEWICZ: So does this budget reflect sort of that proactive work? It's a lot cheaper, I think, to start identifying where our vulnerabilities and risks are. So, does your budget reflect that proactive work? MR. SIMEON: At least I know for one section that we are not, or it's not reflected there. Our bridge section is technically composed of two people, and the Page 80 FC-8 April 16,2019 responsibility is enormous. We have a responsibility to Federal Highways that we have to make sure that 129 bridges islandwide that are in the National Bridge Inventory have to be inspected biennially. And it's not just a, they call it a "windshield" inspection. Because of what happened on the mainland for some bridges there, they're really coming down to us. And the stake is, if we cannot fulfill and do our part in getting these bridges inspected and properly maintained, we're going to lose Federal funding. So, in addition MS. KIERKIEWICZ: We certainly don't want that to happen. MR. SIMEON: Yeah, I hope it doesn't have to happen. In addition to the 129 bridges, there are bridges that belong to us in the local roads or sugarcane roads that we don't even have the chance to inspect those ones yet. And we need to get an inventory of those bridges and inspect them so we know how to properly prioritize those bridges as well. MS. KIERKIEWICZ: Yeah, that was one of the other questions that I had. You talked about increasing and paving and all the mileage, but do you have a formula that you use to prioritize? Is it the age of the road or the traffic volume based on population? MR. SIMEON: So, with the program that we have contracted out, it will,per se, rate the road because it can detect the cracks that are present in the pavement. Of course, it will still need an engineer or us to be able to say, "We have to do our due diligence to go out in the field." That is what this computer is saying or the data is saying; that this is what's in the field. And again, that's the prioritization. It's not going to give us everything, but it gives us some information and data so that we can do a knowledgeable determination and prioritization of which one to do first. MS. KIERKIEWICZ: That's great. I appreciate you being more data driven. I had an opportunity to visit the servers and networks that are housed in Civil Defense and at Aupuni Center. I was a bit disturbed by the server that our current Building permitting process software is on, and nobody wants to touch it. It's really scary. But I'm just wondering. For EnerGov, we're going to have a new server and system to manage that software. Is that correct? We're not going to try to put it on the existing server? MR. YAMAMOTO: Correct. I believe the server is at its end of life anyway. And as far as the computer room, though,part of the project that we're working on for the 911 dispatch center is to design a computer center for IT to have all of their servers and backup servers located at. MS. KIERKIEWICZ: Which is a great idea because a lot of those systems are actually in the tsunami inundation zones. So, it would be great to get that to higher ground. I had a couple more questions. Does your budget reflect ways or Page 81 FC-8 April 16,2019 projects that we as a County can better collaborate with the State on? My colleague Council Member Sue Lee Loy, she introduced that resolution that talked about projects the County and State can work on together under, like, up to $2 million. So, I just wonder if you've identified potential collaboration opportunities and perhaps the next iteration of the budget come May will reflect some of those priorities. Maybe that's more of just a comment, and we can simmer on that and look to including that in the next draft of the budget. MR. SIMEON: One thing that we're looking at with working together with DOT is the joint traffic center. So, hopefully we can better maintain and also collaborate or coordinate our signal system, share the knowledge between the two, our State and us, but basically just to be able to serve or make the signal system better and serve the community better. MS. KIERKIEWICZ: Okay, great. My last question has to do with a pilot project that the State Department of Transportation is introducing to the community statewide. That's the road-usage charge. I know that there are states along the western U.S. (United States) that have investigated this program because they recognize that fuel taxes are not sustainable in the current form with the electrification of vehicles and the fact that vehicles are much more fuel efficient, yielding lesser tax revenue. So, I just wondered what you thought about that potential project and if, down the road, we as a County may need to consider just a change to the way we extract funds from vehicle usage and fuel tax. MR. YAMAMOTO: I agree with having to look at alternative ways to generate the funding to maintain the roadways, being that the trend is to go to electric vehicles or alternative fuel vehicles. And the current fuel tax system will be outdated at that time. MS. KIERKIEWICZ: And we still have roads that we need to maintain, right? MR. YAMAMOTO: Correct. MS. KIERKIEWICZ: Okay. Well, thank you, guys. Chair, I yield for now. Thanks. CHR. DAVID: Thank you, Ms. Kierkiewicz. And there's two Council Members that have not spoken yet. I'm going to go to Ms. Villegas, then Ms. Lee Loy, and then back to Mr. Richards. Thank you. Go ahead, Ms. Villegas. MS. VILLEGAS: Aloha. Thanks for being here,you guys. I just had a couple of questions, because as I was going through the numbers here—and I realized that you presented this PowerPoint presentation with the data in it. And I was comparing it to the one that we were given, which is the proposed operating budget for 2019-2020, specific to the expenditures. And I was getting a little bit confused because the numbers didn't seem to jive. There was a lot of similarity, Page 82 FC-8 April 16,2019 but I wondered if maybe I was missing something. So to start, if we went to this slide, the General Fund by Function, which in total is the $18,542,776. Under that, Engineering, which I was able to find in this overall budget, it's listed here as the $2,358,347, but in the spreadsheet I have, it's listed as $1,832,446. So, with the percentage increase listed here at 13 percent but the percentage listed here in difference between last year at 1.37 percent. MR. YAMAMOTO: Okay, Engineering Division consists of the Engineering Division in the actual line items, as well as the Construction Inspection section. And so, if you add the two, it should come out— MS. utMS. VILLEGAS: I don't see a Construction Inspection MR. YAMAMOTO: It's toward the end of—it's on page 99 of the General Fund budget. MS. VILLEGAS: Maybe it just got— MR. otMR. YAMAMOTO: Yeah, it's separated. I'm not sure why it's like that, but— MS. utMS. VILLEGAS: Okay, and I'm sorry, would you repeat what that's called again, because I don't—? MR. YAMAMOTO: It's under Account No. 5231. MS. VILLEGAS: 5231, and it's called? MR. YAMAMOTO: Construction Inspection. MS. VILLEGAS: Construction Inspection. Okay, so that would make up the difference between that kind of$1,800,000 and the $2,300,000. MR. YAMAMOTO: Yeah. MS. VILLEGAS: Thank you. And then, my other question goes to maintenance. Here you have Building at$8,913,121. And then on the sheet I'm looking at, it says, "Maintenance and Building Division," and the total estimate there for this upcoming fiscal year is $5,743,626. Is there something missing? MR. YAMAMOTO: Okay, similar situation. MS. VILLEGAS: Okay, great. MR. YAMAMOTO: If you look at Buildings, it is $5,743,000. And then if you go to page 100, there's the Building Inspection Page 83 FC-8 April 16,2019 MS. VILLEGAS: Building Inspection goes with that, okay. MR. YAMAMOTO: Which is another $3,169,000. MS. VILLEGAS: Right. Thank you. I thought it might be something like this, but I just kind of wanted to ask the question. I also, then, had a question about, going to the Highway Fund. I see here in this presentation we show the Highway Fund as having the totals here are the $32 million and then going up next year to the $38,627,000. In this spreadsheet, I've got$42 going to $47. Interestingly enough, the change difference is the same amount of money. So, I'm assuming I must be missing something else that goes into this Highway Fund. MR. YAMAMOTO: Yeah, our Highway Fund budget that we reflect, it doesn't include Mass Transit, $9.2 million. MS. VILLEGAS: Mass Transit, okay. Okay, thank you. Okay, fantastic. That just helps me understand where all those different things live and so that the numbers all add up. My other question is, when we receive the supplemental additions to the budget, one of the first—when I added up the amount here, I wanted to make sure I got the appropriate amounts. And it looks as if there's approximately $787,838 in supplemental requests in all the projects that are added on here. Now, does that it just kind of all goes, when I'm adding up this is this one, the supplemental budget request for a Building Plans Examiner, Custodian Groundskeeper, extended cargo van with the high roof. Does that sound about right for the amount that would be in that supplemental budget request? MR. YAMAMOTO: I didn't necessarily add it all, but if that's what it adds up to, yeah, that would be our request. MS. VILLEGAS: Okay, great. And then the only other question that I had,just because the first sheet listed on here for some reason for the Building Plans Examiner, the dates were off. This is July 2013 to June 2014, on the first sheet I have here. And I just wanted to point that out because I wasn't sure if I should add that in or not add that in. It might just be a typo, but I was just trying to get my head around the totals. MR. YAMAMOTO: The one I'm looking at says July 1st, 2019, to June 30. MS. VILLEGAS: There's one that says that and then there's one right— MR. ightMR. YAMAMOTO: Yeah, I think that latter one, it's a different form. It's the F-110 form versus this 201 . MS. VILLEGAS: Okay, you're right. That's exactly what it is. Page 84 FC-8 April 16,2019 MR. YAMAMOTO: And I think that might have been an older submittal back in—we've been asking for these positions since then. MS. VILLEGAS: For a very long time. Okay, great. That makes sense. I just didn't want to add it to the total. And then, my last comment or question would be, and I guess request, is there's a lot of conversations in Kona, at District 7, about traffic right now and many of the challenges we have with our roads. And I was really heartened to talk to you guys the other day about sometimes building more roads isn't the answer. Sometimes, timing our lights and the opportunity to transition to more up-to-date technologies, so that our lights could be timed a little better so the flow could work all together. And hopefully that would ease some of the burden of major road projects for you guys, but it would also allow for more efficient and fluid transportation in our communities. And I was really grateful to hear that you're working with the State on a lot of those things. So I'm hopeful to hear more reports about some of that coming up in the next year. MR. YAMAMOTO: Well, Traffic Division has embarked on upgrading the signal system. They're going to start with a pilot program on Moho`uli and, from there, apply it elsewhere. MS. VILLEGAS: Right. Pilot in Kona. Pilot away. Thank you. I appreciate your helping me understand those numbers and what fits in where. And I also want to say a thank you to Neil, Mr. Azevedo, and all the work that's been happening on the west side and his crews. Thank you. Aloha. I yield. CHR. DAVID: Thank you, Ms. Villegas. Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Chair. Thank you, David. Thank you, Allan, for being here. I actually wanted to go last just because I wanted to hear what my other colleagues had to say, and I've been working very closely with this division. But I'll start here, David. Because you mentioned there would be a refined budget and then a second iteration and because of time, I'm going to be sending you a memo to kind of create some high-level conversations around what this body is trying to get to. And basically, the questions are: How does your budget create collaboration across other departments to have better effectiveness and efficiency; two, who are you partnering with to bridge the gaps and leverage resources; three, how does this budget—and this is for all the agencies—set the framework for your department to meet its goals and missions; and then the fourth question is something Ms. Kierkiewicz just touched upon, which is what type of management tools or strategies do you use to address change. We talked about climate change or even the fuel tax, right, how we're going to be using fuel tax and how we have energy-efficiency vehicles. Page 85 FC-8 April 16,2019 So, we want to hear the strategies for that. And I'll just put a pin in that. I'll send you folks a memo. So, with the second iteration of the budget, that refined, if you could provide that. Then we can all start this conversation with that high-level part and a framework. I do want to mention EnerGov. And part of this is we just have to get it on the record. And I heard Mr. Richards talk about an update. So, I'll be putting that forward. But my concern with EnerGov and what I don't see in this budget is enough training for the implementation, which what I heard you say when we did the MagNet system, frustrated the employees. And so, they didn't use the tool because there wasn't enough training for it. So I want this department to give that part of the budget some thought. Because we can give them a tool, but if they don't know how to use it, then we're not creating the efficiencies and the effectiveness or the cross-collaboration across the various pillars of agencies. Unless you can point to that in the budget right now, David, about training for implementation of EnerGov, is it there? MR. YAMAMOTO: It's part of the contract with EnerGov that they provide the training for employees. They also will have an online web-type training that they can go back to and refresh the various tools that they have available. And I believe we also would have where we can build our own tools. MS. LEE LOY: The other point I think Ms. Poindexter and then Ms. Kierkiewicz touched upon is the permitting fees, right. We're just not generating enough. And I think you and I have some strategies on how to address that with the Admin code review and some of the things we're doing. But if you could give some thought on that permitting fee structure so, one, it has enough teeth in it to discourage people from just building without a permit. Because, the violation is actually cheaper, right? So, if you could give that some thought. And then finally, I've been tracking Senate Bill 397, Draft 1, which requests kind of a tax clearance for construction work at a threshold of$195,000. And I don't know what the position of this department is on that one, but here we are building a permit-system process, revising admin. code review, looking at an EnerGov project, and now the State is stepping in with another threshold that puts another piece into this building-permit process, which is a tax clearance from the contractor prior to receiving a building permit. MR. YAMAMOTO: We have access to DCCA's (Department of Commerce and Consumer Affairs) site, and EnerGov is supposed to be able to access their database to confirm contractor licensing as well as tax information. MS. LEE LOY: I think my concern is the threshold of$195,000 is going to be a 400-square-foot tiny home. Right? It's going to be everybody. And so, how we hope to improve the building-permit process, we're going to have this as one more hurdle, and then we're going to have to do a workaround again. So, I kind Page 86 FC-8 April 16,2019 of want, like bigger strategies, bigger thoughts, and then how that is implemented in our budget so that we can really shift. Affordable housing is important to everybody. It's good for families, but it's good for our economy. And that's where we're trying to get to. So just again, all of these suggestions, I'll put them in a memo. And with the second iteration of the budget, if you guys could help us answer those questions. Chair, I yield. CHR. DAVID: Thank you, Ms. Lee Loy. MS. LEE LOY: Sorry, I had one more question. CHR. DAVID: Oh, go ahead. MS. LEE LOY: Sorry. I did have one question. I was looking at the Public Works Automotive budget. There's a program expenditure; it's on page 280. It's for equipment. And the actual was somewhere at$44,000, and then budgeted, it goes down to $100. I'm trying to understand why it went so far down. MR. YAMAMOTO: What budget item was that? MS. LEE LOY: It's the Automotive Division. You have program measurables and then program expenditures. There's number of positions, salary and wages, operations, and then there's a line item for equipment and it's budgeted for just $100, from $44,000. MR. YAMAMOTO: I'm not sure what was included in the previous budget. Probably they were replacing some equipment that they had to in the previous budget, and currently they now recognize that they don't need any additional equipment to provide the service that they have to provide. MS. LEE LOY: Thank you, David. Thank you, Allan. I yield. CHR. DAVID: Thank you, Ms. Lee Loy. Mr. Richards. MR. RICHARDS: Thank you, Chair. Again,just a couple of comments, real quick. Credit where credit is due. Public Works, the line of questioning is for a good reason, the fact that your budget's in excess of$66 million. And so, we as a group have the responsibility to have stewardship over that and ask the questions. That being said, like I said credit where credit's due. Before I get to that, I had a question on your Highway Maintenance. Under your Administration, we have a whole bunch of vacant and unfunded positions. What's the story on that? It looks like, essentially, a non-functioning area. Is that something that we moved people out of? What's the story on that? Page 87 FC-8 April 16,2019 MR. YAMAMOTO: I'm not familiar how they got there, but I assume it was due to the budget shortfalls in the past. And as people retired or left, they unfunded the position to balance the budget. Going forward, we're going to be looking at our budget and evaluating between equipment and manpower to fulfill the mission that we have in keeping our roadways safe, and in safe repair and improving the roadways that we have. So we may be, as budget permits, requesting to have these positions funded again. MR. RICHARDS: Okay, looking through the other positions in all the different districts, there's some vacancies there and some unfunded. But I was just curious because it seemed like almost a whole division. And I'd appreciate kind of a look at that. Oh, Deanna's coming up; she must have an answer. (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MR. YAMAMOTO: Yeah, I'm not sure. I don't know. Deanna informs me that they were temporary positions in the past. MR. RICHARDS: Okay. MS. SAKO: So,people temporarily assigned into them as needed. MR. RICHARDS: Okay. So, a pool to pull from. Okay, all right. That answers that. And like I said, credit where credit's due. I do have to give you guys credit in your road maintenance. I know Neil's in the room right now, but big kudos to you guys. And when we talked about the increase of paving from 20 to 30 miles, it doesn't sound like a lot. But if you look at the direction for the County, when we took office, I think that the cycle of paving was once every 65 or 69 years. And based upon those numbers, that actually drops it to about once every 30 years. That's still a long time, but it's cut in half. And the roadwork that you've done, again Ms. Villegas, I need to echo that because the work's been done. Neil, kudos to you guys. Kudos to Public Works for getting that stuff done. And we're not to where I want to be, but cutting the repaving time in half, that's huge. So again, thanks to you guys for getting that done. Chair, I yield. CHR. DAVID: Thank you, Mr. Richards. MR. YAMAMOTO: We haven't gotten it done yet, but we're going to try. MR. RICHARDS: As long as we keep trying. That's what I like. CHR. DAVID: Awesome. Ms. Lee Loy. Page 88 FC-8 April 16,2019 MS. LEE LOY: Thank you, Chair. Maybe if I could call Deanna back up. And partly because Ms. Kierkiewicz touched upon it with our $60 million from our Legislature, but we also had $22 million from the Governor as a first, kind of, infusion of money. And I'm not sure if this was asked earlier of you. Where is that balance being spread around? Because I understood that that money was for recovery overtime. I know this particular department had a lot of overtime, along with Police and Fire. So tell me, yeah, where is that in all of this? MS. SAKO: So, that money is in the General Fund in, I'm going to say, it's a 900 account so that all departments can—and so, as departments come close to (inaudible), transfer the cost there. So, at the end of the year, they'll kind of have one big cleanup to get it all in the right pot. MS. LEE LOY: But some of it was restricted, right? I mean, some was way more flexible, the first$12 (million) and then the $10; or $10 and $12, right? Is it a fair assessment that, basically, the departments that could tap into the money would be this one, Public Works, Police, Fire, and Parks? MS. SAKO: Right. For whatever they don't get reimbursed by FEMA. MS. LEE LOY: Thank you. Chair, I yield. CHR. DAVID: Thank you, Ms. Lee Loy. All right, Council Members, anyone else before we close? Okay. Well, you know what? The good thing about speaking last is pretty much everybody said what I was thinking. Except Director, I just have one question. This EnerGov, you said you are at a stopping point right now, a holding point. Do you know about how long you're going to take to get this thing fixed so that we can proceed? MR. YAMAMOTO: I think they're in the process of testing the software to see if it works. CHR. DAVID: Timewise, we should be MR. YAMAMOTO: Well, we're hoping they can stay on the revised schedule. If not, accelerate it if they can. But, the IT (Information Technology) section is it took a while to identify where the problem lied first, and that was part of the problem for the delay. CHR. DAVID: Is that going to cost us any more money for this ? MR. YAMAMOTO: The only cost that it appears we're going to incur is having to prolong the maintenance of the existing software. CHR. DAVID: I see. Okay. All right. And like I said, thank you, Council Members, because a lot of the questions have already been covered. And what I Page 89 FC-8 April 17,2019 want to close with, is to say thank you, Director, Deputy Director, and especially to your road division. And the reason I think we're all recognizing Neil and the road division and your department, is because when people can see improvements, even a one mile of road or a quarter mile of road in their rural districts, they appreciate it, and they can see that something's being done. It's not a lot. It's not what we really would like to see, but at least there's some progress that can be seen by our constituents and that means a lot. So, I really want to thank you folks for making the effort and doing this in an islandwide and equitable manner. So, keep up the good work, and we'll see you next time. Okay, so, thank you, everybody. I am going to place the special meeting of the Finance Committee in recess until 9:00 a.m. tomorrow morning. Mahalo. We're in recess. RECESS: At 4:35 p.m., the Chair declared the meeting in recess until 9:00 a.m., on April 17, 2019. RECONVENE: The Special Meeting of the Committee on Finance was reconvened in the Council Chambers, Hilo, at 9:00 a.m., Wednesday, April 17, 2019, by Ms. Maile David, Chair ROLL CALL: Present: Ms. Maile Medeiros David, Chair Ms. Karen Eoff, Vice Chair Mr. Aaron S. Y. Chung, Member Mr. Matt Mr. Kaneali`i-Kleinfelder, Member Ms. Ashley Kierkiewicz, Member Ms. Susan L. K. Lee Loy, Member Ms. Valerie T. Poindexter, Member Mr. Herbert M. "Tim" Richards, III, Member Ms. Rebecca Villegas, 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 Chair called Abelghassem Abraham Sadegh,who registered to speak to comment on Bill 30 and Bill 31, came forward when called by the Chair. CHR. DAVID: Alright, that concludes our public testimony for this morning, and I think we can proceed with the Office of Prosecuting Attorney. DEPARTMENTAL The Chair directed the Committee to proceed to the next item on the agenda, BUDGET AND Departmental Budget and Program Reviews. PROGRAM REVIEWS: Page 90 FC-8 April 17,2019 (1) Prosecuting Attorney Office: CHR. DAVID: Mr. Roth,please come up and bring whoever you want to bring up, and introduce your members and yourself,please. Thank you. (Note: At this time, Prosecuting Attorney Mitch Roth and First Deputy Prosecuting Attorney Dale Ross came forward to address the members of the Committee.) MR. ROTH: Good morning. CHR. DAVID: Good morning. MR. ROTH: So, thank you for having us here. I'd like to first off start by introducing Dale Ross who is my First Deputy. CHR. DAVID: Good morning. Aloha. MR. ROTH: I have some other employees who are here. I've got to tell you, and I say this every year and I truly mean it. I think we can back it up that we have the hardest working office in the County. I have Grant Nagata, our Accountant; and Lee Lord, who is our Fiscal Business Manager. You know, couple of years ago when they did the audit and stuff, they found that our accounting was actually gold standard. I have Lisa Faulkner-Inouye, who runs our special projects; Debra Chai, who runs our Victim Witness Program; and Chris (inaudible), who is the Head of our District Court units. CHR. DAVID: Good morning. Welcome. MR. ROTH: I'd like to start and really just thank all of you. Especially, I'd like to thank Ashley and all the other Council Members that got a chance to come and talk to us. This is my seventh budget, and I think this is the first time that we've had Council Members come to talk to us about our budget, and I think it was something that was, for me, one of the best experiences I have had, to kind of go over and learn things that I thought we knew. We assumed we knew, and I assumed that you knew. There were so many good comments that I learned, and so many good things. One of the things that we talked about—I'm going to share about our office in a few moments but we talked about things like knowing what kind of overtime there is in a department, knowing about what the supplemental requests are, what the goals and objectives for each of the offices are. When Sue Lee Loy came, Page 91 FC-8 April 17,2019 because her husband is a police officer, she asked about our computer system, which sets us off on a whole different track. We looked at the new system that the Police have put in and how it's affected and impacted our office. There were a whole bunch of things that came out. Every one of you that came has great things. I sincerely apologize, and I have apologized to most of you who didn't get a chance. But I think it's so important for government, for us, to be communicating and talking to each other, and in doing so, you know, completely open, and honestly, and transparently. So, I just wanted to thank those of you that came because it reallyI think it was making a difference this year in the budget. I think about my personal mission statement, is to improve the quality of life for the community and for my family. My deputies, when I first took over, I made sure that everybody had a mission statement. The other thing I asked for was a philosophy. My personal philosophy on the office is we do God's work. That's not a religious thing that anybody has to believe. I think He's the boss, and that kind of guides your judgement and things like that. I bring this up because it's like a compass. I think about the Council, you're kind of like in a canoe. You're leading the canoe for the County. And it's important that everybody is communicating with everybody. I know we have certain things that came up when we talked, that prevented you from really having good conversations. The Sunshine Law has good reasons for being there, but it creates some other difficulties. So, I just really want to start with that. The mission with of the Prosecutors Office is we pursue justice with integrity and commitment. Aaron asked, excuse me, Councilman Chung asked me if we can do some slides. So, I have some slides for you guys, (Note: At this time, Mr. Roth and Ms. Ross provided a PowerPoint presentation to the members of the Committee. For viewing of the presentation, please see the DVD copy of the meeting proceedings on file in the Clerk's Office or navigate to the Council's video archives online in the County's webpages at www.hawaiicounty.gov. A hard copy of the presentation is made a part of the record, see Comm. 117.10.) MR. ROTH: So, I want to thank you, and I'll leave it up to open to questions, if you have any questions. CHR. DAVID: Thank you, Mr. Roth. MR. ROTH: Thank you. First Deputy, would you like to say something, Ms. Ross? MS. ROSS: Well, thank you very much for your attention. I concur with Mr. Roth about our hardworking clerical staff and the pressures they've been Page 92 FC-8 April 17,2019 under for many years. Because as the Judiciary and Police have improved technologies and added all these computerized systems, the brunt of that work, the task, goes to our clerical staff. And it has consequences then for the attorneys when they're not able to keep up. So, thank you very much for your attention. CHR. DAVID: Thank you very much for that explanation, and Mr. Roth, too. Council Members, opening for questions? Mr. Richards, go ahead. MR. RICHARDS: Mitch, first of all, thank you. That was a great overview. A succinct, good, bad, and the ugly, describing. And I appreciate the fact, sitting down and talking story with you about coming forth and what we're going to do and couple of things that you and I have kicked around and talked about. On your presentation, you talked about the overtime. Put a number, as far as total cost of that overtime. MR. ROTH: I think as of last week, it was like $75,000 for this fiscal year. But you have to realize that you have CTO (Compensatory Time Off). If we ask people to come in, we have to pay them cash. But you can only get your CTO up to a certain amount. MR. RICHARDS: CTO means? MR. ROTH: Unpaid Compensation Time off. Comp Time Off, yeah. MR. RICHARDS: Comp Time Off, okay. Alright. So, go ahead. MR. ROTH: So yeah, I think the cash value, Grant, was it 70 something? About $75,000 so far this year. MR. RICHARDS: Okay. For me, more concerning than the cash side, is also the burnout side. What kind of hours are people logging on that? Or, like you said, they're not logging hours because they just want to get the job done. MR. ROTH: Put it this way, I would say that most nights, if you drive by eight, nine, ten o'clock in the evening by the County building, you will see cars at my office. Our Clerks, I know that a bunch of them will be there probably till seven, eight o'clock. Coming in at seven in the morning. The burnout is real. And when you have people who are coming in sick on a weekend because they feel they have to get stuff done, me, it's my hugest concern right now. We've lost a lot of people. People tell us, "I love working here." It's a grinder. You know, for the deputies, a lot of people expect it from the Deputy Prosecutors. But it's not uncommon for them. Oftentimes they'll go out and they'll come back in at 10 o'clock. I get calls couple of times a week from the alarm company because someone has forgotten to set the alarm. I don't know if they do that just to remind me, "Hey, you better do something because we're here." But it's a Page 93 FC-8 April 17,2019 huge concern. We've had some significant stress issues this year. I've just got to put it that way. MR. RICHARDS: Okay. If you look at fiscal 2017, to 2018, to 2019, what is the change? Is it more difficult cases? Is it less computer support? You mentioned that your computers are antiquated. Is it a combination of it all? What is it? MR. ROTH: So there's some big combinations. I think right now, and I'm trying to put this as politically correct as I can, right now we're going through a huge learning curve with the Police system. Like I said, when I surveyed my employees, anywhere from three minutes to three hours a case. When you get 17,000 cases in a year, you're starting to talk some significant time. Now, my hope is our new system, will go online in the summer, late summer, and it hopefully will take some of those problems out. And I've got to say the Police have been working on their end, getting their people trained, and working with their vendor. To some extent, it's getting a little bit better. But, that's been a big issue. The courts, as Dale said, the court's changing their system for electronic filing. And stuff that we would be doing that would take us a lot less time, we're now doing their work, as well. So, there's some big issues there. MR. RICHARDS: Okay, we'll explore that a little bit further. Because again looking at your numbers, relatively speaking, I don't know if it's statistically important or not, but you're numerically declining a little bit as far as the total police reports. But your overtime is skyrocketing, so I'll come back to look at that a little bit. You and I also talked about getting ahold of the youth and getting them on a different path, and if that crosses over to some of other supports, and Council Woman Lee Loy has mentioned this in the past, the synergies between what we as a County can do. You know, one of the things we found in working through the GIA (Grant-In-Aid), and I think we talked about this, we have problematic kids. The big problem is they're just hungry, so then they start acting out and thereby—and so what are you doing to seek collaboration between other groups, other departments? You know, rather than having a kid get in trouble, let's put them at the parks and have them, whatever, help out. You mentioned the Camp Agape. MR. ROTH: I've been helping out with Camp Agape. I also sit on the board for the Boys and Girls Club. So very thankful for the Council in helping out both of those programs. Lisa, you want to come up? (Note: At this time, Program Manager Lisa Faulkner-Inouye came forward to address the members of the Committee.) Page 94 FC-8 April 17,2019 MR. ROTH: This is Lisa Faulkner-Inouye. As Special Projects Coordinator, works on a lot of our youth issues. MS. FAULKNER-INOUYE: Hi, so CHR. DAVID: Excuse me, can you just identify yourself for the record for our staff. MS. FAULKNER-INOUYE: Oh, I'm sorry. My name is Lisa Faulkner-Inouye. I am a Program Manager at the Prosecutors Office. I supervise two people. We have a team of three, of the Crime Prevention and Justice Assistants Group within the office. We're the only personnel in the office that focus our efforts not on the actual justice system itself, we don't have access to cases, but we work with the community, in collaboration with the community, to address specifically but not—specifically these but not excluding others, would be domestics violence, sexual assaults, substance abuse,juvenile justice, and many other initiatives that come through the office. One of the key pieces of our job is to collaborate and build partnerships island-wide because we are island-wide positions. Earlier you had asked Mitch what hisI believe,what his philosophy was, and I just wanted to share, mine is positive youth development, and prevention, and keeping kids from entering the system or further penetrating it, if they're in. MR. ROTH: I'm sorry, can you talk about some of the training you guys just did? MS. FAULKNER-INOUYE: Sure, okay. So we have funding through the State. We just did four trainings, two on each side of the island, and they were on opioid, specifically on opioid prevention, collaboration, and coalition building. But also, heavily on the positive youth development piece, and that's increasing exactly what it says, "Increasing the positive factors in youths' lives which helps decrease the chances of them getting them involved in the system." MR. ROTH: So Lisa actually has put on some several of these different trainings and different functions. By the way,just to put a face to a name, when you guys do your contingency funds to help groups out in the community, it's generally Lisa that's working with those groups to make sure that things are going on. For example, Committee on the Status of Women is another one of the groups that comes under our office. This month they have their real women essay contest, so Lisa is working with them to put that on. I would say—it's fair to say maybe every month there's something. There's some kind of conference or something that deals that youth that you guys are dealing with. MS. FAULKNER-INOUYE: Right. We don't direct services to youths, but we help enhance the capacity of people in the community that do. We provide them with trainings on suicide prevention; we just sent a contingency that includes two Page 95 FC-8 April 17,2019 School Resource Officers. One in Hamakua, because I understand not too long ago there was a rash of these suicides in Honoka`a. So we sent the School Resource Officer from there and the underserved community in Pahoa, along with Hawaii Fire Department, Catholic Charities, their foster parent trainer, and several others. And we went to a statewide suicide prevention conference to help increase everyone's knowledge of how to better serve youth and families. MR. RICHARDS: And the funding for that, you said State? Is it all State, most of that total budget? MS. FAULKNER-INOUYE: For that piece, it is. It's Alcohol and Drug Abuse Division, out of the Department of Health. We have contracts. Each County gets a contract to build a capacity of prevention systems in their county, so we use those funds to MR. RICHARDS: How much? MS. FAULKNER-INOUYE: $110,000 a year. MR. RICHARDS: Okay. Are you partnering up with—you did mention some others. I know Kahua Pa`a Mua, out of Kohala was doing a teen suicide program. Have you dealt with them? MS. FAULKNER-INOUYE: I believe they were represented at the training, but I haven't dealt with them specifically. So a lot of the things we do that aren't in our normal course of job on a daily basis, is as things pop up, we'll go and participate or help out. And it could be that I just haven't connected with them right away. MR. RICHARDS: Okay. I just asked the question, because again we're trying to seek that synergy that you keep hearing us talk about. MS. FAULKNER-INOUYE: If I may add? MR. RICHARDS: Yeah, go ahead. MS. FAULKNER-INOUYE: If you any of you folks feel the need that you know someone that I should be in contact with or our unit should be in contact with, please, definitely forward to us. There's so many great people in this County, and we just can't—we meet as many as we can and obviously, we wouldn't know everybody. So, please. MR. RICHARDS: Shifting gears a little bit. Mitch, you and I discussed this. I appreciate that; thanks for the insight there. But kind on the same lines, we talked about that news report coming out of Seattle, the Seattle dying and the decriminalizing of some things in effort to cut down crime, but actually it enhanced crime. The direction as far as that goes, and you know, we've all heard Page 96 FC-8 April 17,2019 the allegations; the police do their job and then they don't get punished. I appreciate what you call it, "smart sentencing." MR. ROTH: Smart sentencing. MR. RICHARDS: Can you just make a few comments on that,please? MR. ROTH: About some of the MR. RICHARDS: Let me stop you for a second. For the Council, there's a news documentary, it's called Seattle's Dying. It's a real interesting thing because it talks about a community struggling with drug addiction and all, and I'd suggest watching. But go ahead, Mitch. MR. ROTH: Unfortunately, a lot of those decisions, again, are being made at the State level. You know, start with the legalization of marijuana. A lot of people think about just smoking a joint or something like that. So if you go back to the 80s or 90s, when some of us were younger, the THC (Tetra Hydra Cannabinol) level was about three to five percent in there. Currently, a marijuana cigarette may be like 25 percent. The biggest problem, we're just dealing with our schools. I don't know if you heard this, stridents vaping. So what does vaping have to do with marijuana? Well, there's now ways of getting marijuana, THC, into the vape pens that's going to be close to 90-95 percent THC, and we're starting to see kids go into the emergency room from our schools. Because we're making some decisions, we're making some very dangerous decisions, I think. That would really need to be thought through a little bit more. I think a lot of the issues and how we handle them, I think a lot of those laws on the State side are affecting us or impacting us. But it's an opportunity for us to work closer together and build up better collaborations and start to think smarter about what's going to happen, the ramifications. We're starting to see you know, if you look at our homeless issues here, we have those ramifications now. MR. RICHARDS: Chair, I'm going to yield right now because I'm dominating the conversation. I want to hear from my colleagues. Thanks. Thanks, Mitch. CHR. DAVID: Thank you, Mr. Richards. Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Chair. Thank you, Mitch, for being here. Again, I really appreciated our conversation. I think more importantly, you get it. We're trying to shift the vernacular, output versus outcome, measurable/deliverables. And I really appreciate that philosophy coming forward. Page 97 FC-8 April 17,2019 I do have just a few questions. How does this budget create that collaboration that you talked about? I know that's a tough one. And if you don't have the answer now, there's going to be a supplemental budget or a second pass at this. So if that's something you want to write for this body, that's fine. MR. ROTH: You know, I generally come here MS. LEE LOY: So the collaboration because what we're looking for is the collaboration which creates the effectiveness, which creates the efficiency. And then I'm going to take you into one area that I think you and I know very well, called the Kilmann ProgramI mean, the Spillman Program. MR. ROTH: Spillman Program, yeah. MS. LEE LOY: So why don't you start there? MR. ROTH: I don't know so much about how the budget I know in the pass years, and I realize that there are 17 departments, and everybody has their needs. If I start taking away from somebody's needs, I'm impacting other agencies. Mr. Richards brought up—right now I have people that are in distress because their workload is as it is. And I think we really need to look into that, and make some changes. MS. LEE LOY: And thank you. Because it's that honest conversation that you talked about. We've got to have them. We have to talk about our deficiencies so that we can make meaningful change. So I want to dive into that computer system, because I know it very intimately through my husband's work. So we're seeing that not only the police officer side entering this data as it's being transferred over for your folk's work, you know, to address the next steps there. How do we create better context between what the Police Department is doing and inputting of their data, which I understand to be seven different screens, which then has to be transferred over to you folks, not to mention the various databases that hold all of this information? How do we get there? Where is that in this budget? And how do I look for it in the Police Officer's budget or do we drive with IT (Information of Technology)? MR. ROTH: You know, it's a very difficult question that you're asking. Let me say this, I think the police are as frustrated as we are. You'll have to ask them about that. I will say that there have been some people at the Police Department who have been going above and beyond. One that jumps out tome is Joanne Tallet, who has been taking our calls and trying to help in whatever way she can. Major Andrew Burian has been doing the same. I think they're sympathetic of our situation. Page 98 FC-8 April 17,2019 But I think, really, what it screams out for the future is leadership. We need to be talking about these things and planning these things a lot better in the future. Not to be in the situation and then say, "Okay, now what do we do?" I appreciate Chief Ferreira. I think he's been trying to do what he can at this stage. But you have to remember, this system has been in play for many years. It just went online recently. I really don't know how to give you a great answer on this. I would hope that their vendor would start really getting more involved. I'm not saying that they haven't been, but I think they need to realize that it's impacting us everywhere, the officers, the prosecutors, and the court. MS. LEE LOY: Share with me again the survey of clerical staff, and how much work this Spillman you know I want to call it something else this program is adding. MR. ROTH: So when you came to our office, right, you asked the question, and I felt the best way to do that was to bring in someone who is a legitimate end-user. We asked three questions. And the questions were: Does this help you., yes or no? And she said "no." Does it save you time or does it add more time to your work? "Oh, it adds more time." How much does it add? She said it could be up to 20 minutes a case. At that time, I had already known that we were having issues, but I didn't know quite how bad it was. So I sent a survey to the whole office, asking the same questions. You know, kind of leaving it open for them to go either way, and pretty much everybody said, "Not helping." There were some highlights in there. You know, we've got pictures in there now, so that's a good thing. The one that really got me was between three minutes and three hours per case. It really explains the overtime, you know, the picture. I don't think—when the Police put this in, that wasn't their goal. I think that their vendor may eventually get this program into a place where we're saving time. We're just not there yet. MS. LEE LOY: So that leads me to the next question. Because one of the needs that you mentioned was a Legal Edge Case Management System. MR. ROTH: We were actually working on that. We had grant funds, and we had some County funds, I believe. It might have been the County funds to put that in. So we've been working with our vendor for the last year, year-and-a-half. They're at the point where they're working with the Spillman vendors because we need them to work together. You know, ideally, those things are costing a bunch of keystrokes. I'd be able to take some of those out. But I haven't seen it yet. MS. LEE LOY: So yeah, I guess the question is, is there enough money for the training piece? Because we're hearing that with other departments, right? They're trying to move into a more efficient, EnerGov system or whatever; and as Page 99 FC-8 April 17,2019 people have to start using them or relearning the inputting system, there's just never enough training budget, so they get frustrated. Is there enough money in our training budget? MR. ROTH: In our contract with them, we have in-person and we have taped training, as well. So that isI believe we are the end-users of our system, so we pretty much just—in our department. So at this point, we still haven't seen an end product. We've seen early versions of it. Very promising, but they're telling us that in our contract we do have training that is budgeted in as well as taped team training. MS. LEE LOY: This is my final question, because I really appreciate the philosophy of trying to catch them upstream, which leads into Lisa's work with the collaboration piece. I've attended some of that training, and the invitation of all the various community stakeholders at that meeting. Just putting it out there, because we have our own nonprofit grant-in-aid, and we see a whole lot of need there. Just your thoughts on having someone from your office sit in as an ex-officio, where we could actually maybe amend or legislate, because that's what this body does, right; a different policy piece where someone like Lisa could sit in as an ex-officio during that process to glean out the various synergies on how we're touching youth, with various people who are asking for help to feed our youth, to provide afterschool programs with our youth, then build in the educational piece that somebody else is doing. I've got you on a hot seat. MR. ROTH: I don't know what Lisa's going to say about this, but I like it. I think it's a great idea. I know as we went through the refinements of the contingency, what needs to be done. I think that you guys have changed your process to amend it to what our process is. She's very smart. Sounds like a really good idea. I'm looking back at her, though. MS. LEE LOY: Yeah. She's smiling, though. She is, I tell you. MR. ROTH: Okay. MS. LEE LOY: Yeah, and that's something I think over the last three years that I've sat on the nonprofit grant-in-aid committee, is how we're having those agencies come in and demonstrate to us what their ask is, what their mission is, how they're meeting it. And then the very next year, "We gave you money, what did you achieve,"right, "What's your impact statement; how are you moving the needle?" And so I kind of want to pull that back rather than, you know, more at a Google level. But Lisa is smiling, so I'm going to work on that. MR. ROTH: That's good. And I just got to tell you, it would probably be invaluable for you to hear some of the feedback from the contingency funds that she has to give you. I kind of assumed before, and I'm not going to assume Page 100 FC-8 April 17,2019 anything because I've been proven wrong before in my assumptions. But I think her insight is invaluable to you. MS. LEE LOY: Then we get across, right? The pillars and the silos, and we get to the collaboration piece. MR. ROTH: Absolutely. MS. LEE LOY: Thank you so much. I really appreciate all the work your office does. I know my husband and his buddies pour a lot of it into you folks. So I really appreciate all the work you and your staff does. Thank you. MR. ROTH: Thank you. CHR. DAVID: Thank you, Ms. Lee Loy. Mr. Chung, go ahead. MR. CHUNG: Good morning, Mitch, Dale. MR. ROTH: Good morning. MR. CHUNG: And thank you very much for inviting me and others to that meeting or to meet with you and your staff. With regard to my request to have a PowerPoint presentation, it was intended for us to just have some visual aids. I remember last year you came without any visual aids. MR. ROTH: That's pretty visual. MR. CHUNG: Well, right. This is enough. But it's kind of good for the viewing public, I guess, right? Because last year you were rattling off all of these statistics and it was really, really difficult for us to digest. It was almost like a Rodney Dangerfield, you know, where you're kind of laughing at things that he said two minutes ago. Because we're still trying to digest, right, all of these things. So thank you very much for these visuals. I want to continue talking about the records management system that was implemented by the Police Department because that seems to be something that's tied into our budget in overtime. When did that thing start going online? MR. ROTH: I think October of last year. MR. CHUNG: October of last year. Okay then—let's see, that's what explains this spike here? MR. ROTH: Yes, one of the things that explains that spike. Page 101 FC-8 April 17,2019 MR. CHUNG: Okay. And how often do you get together with the Police Chief on this matter? MR. ROTH: On this matter? MR. CHUNG: Yeah. MR. ROTH: We've had meetings. We meet quarterly with the Police. So we have a command meeting, where we meet with the Chief. We talk about our issues and their issues. We knew it was coming on. We were asking for training, you know, for a while. We wanted to make sure that we had very similar to what we had before, where the police were bringing the data over to us. I think it is kind of like the conversations we had with Council. We assumed that we're going to get the same kind of information, delivered in the same way. I think they assumed similar, that it was going to be coming over to us in the same way. I think that was more of an issue. Then there's issues with how intuitive the system is. So if you ask more of a question, you need to MR. CHUNG: So I mean, how what kind of in-depth discussion have you had with the Police Chief in trying to improve the system, the interagency system? MR. ROTH: So we have regular conversations, not so much with the Chief. He's put Major Burian in charge. MS. ROSS: I'm sorry for interrupting, but I'm the point of contact with Major Burian on Spillman issues. We have conversations with him on a weekly basis. MR. ROTH: Sometimes daily. MS. ROSS: We're always bringing one issue or another to his attention. MR. CHUNG: But it seems that it's a systems problem then that won't get solved in anytime soon? MS. ROSS: And it's a human problem because you have everyone who touches the system might not have done it correctly, or whatever. There's an issue, so it's a training and human problem, as well. At this point, there's going to be changes upcoming when the two systems integrate. We're in the process of getting to the point integration; but for now,prior to integration the method of how we communicate with the system is really cumbersome and hard to manage. MR. CHUNG: I guess what's troubling for me, perhaps others here, is that these systems are intended to improve efficiency. But from what you've told us, it's Page 102 FC-8 April 17,2019 not. I mean, very clearly, it's not. But you did say we may get to a point where it does make things easier. Do you anticipate that? Or is just going to be ? MR. ROTH: I do anticipate that eventually happening. So let me give you what I think are some of the positives that system will be able to have. They'll have crime maps, so they'll be able to see where certain crimes are Napping, where things are—and we'll be able to get, hopefully, some of that information. I don't think that we have that at this stage. There will be some things that the police were looking for that they didn't have in their last system, that I think will be positives. I don't know if they have that for them right now. For us, on our part, right now it's just a very difficult learning curve. MR. CHUNG: Yeah, and that's what I'm looking at because it relates to overtime. MR. ROTH: Right. MR. CHUNG: I have no doubt. Well, there should be no doubt that the system will improve operations, maybe not making it more efficient but providing more information. But as it relates to your overtime situation, what do you anticipate? Will we get to a point where things will balance out and that steep curve will level out or will it continue? MR. ROTH: Well, if we continue to staff our staff at the current rate, it's never going to balance out. I mean, we're going to continue to have severe overtime issues because we just don't have enough people to do the tasks at hand. MR. CHUNG: Right. MR. ROTH: And when you talk about efficiency—you know, the court loves their system because it makes the courts work more efficient by putting it on our backs. MR. CHUNG: Right. So, Mitch, so basically the situation will not improve as it relates to your workload. You don't anticipate that happening then? If something is happening at the Police Department the way they operated, and then it translates to less work at your office, it's not going to happen. MR. ROTH: I'll have to say I do see some changes. I don't know what degree, though. So, we're talking about degrees. One, they're working on training their people to better use the system. If they were completely trained and proficient in their system, it will make our lives a little bit easier. Will it be as efficient as we were in the past? I don't know. But if we're having to look for discovery in Page 103 FC-8 April 17,2019 multiple different sources rather in one place, then no, it's not going to make our lives easier. MR. CHUNG: So systemically it won't improve the situation. The reason why I ask that is MR. ROTH: Well, I think it's degrees. MR. CHUNG: This graphic and this situation makes for a compelling argument for you to get more clerical staff, okay. But if it's anticipated that things will normalize themselves, once the police start to understand this a little bit better, then we'd be foolish to add more staffing when you won't need it, say a year or two from now. MR. ROTH: Okay, so it's not just one piece. It's not just Spillman. Spillman is a big part of this. I don't think it's whether it's going to normalize or not; I think we're talking about degrees. I don't think it's going to be as efficient as we were before. That's part of your question. MR. CHUNG: You've got to give us a better picture. MR. ROTH: I can't tell you because I don't know what changes they're going to be doing. I know that they're constantly working on changes. MR. CHUNG: How about this? You know, I don't want to belabor the point. When the Police Department comes up, can the two of you come back? Would that be possible? MR. ROTH: When are they coming back? CHR. DAVID: 1:30 this afternoon. MR. ROTH: I could probably come, yeah, for a little bit today. MR. CHUNG: Yeah. Okay, and maybe we can have a better discussion. Because this is really important, I think. I mean, as it affects your operations. It's something that's not within your department, something outside that's creating some impacts within your department. So that's something I think I'd like to get a better handle on. Lastly, and maybe we don't have to go on long discussion on this one too, but you mentioned legalization of recreational marijuana. MR. ROTH: As a for instance, yes. MR. CHUNG: Huh? Page 104 FC-8 April 17,2019 MR. ROTH: As a for instance of other issues. MR. CHUNG: Right, right, right. If we had to take a guess, this is something that's on the horizon already, right, the State of Hawaii. So I'm just wondering, what kinds of input the law enforcement community is providing to our legislators in that regard? I mean, to take to look at thing proactively, since it's happening, we may as well do it on our terms and provide input as to how would we like to see it done. Is that happening on the State level? MR. ROTH: Absolutely. Absolutely. MR. CHUNG: Okay. MR. ROTH: I just came back from a conference, and one of the things I saw was this whole thing on vaping. We knew that Hawaii County, for example, has just disproportionate amount of vaping going on. We have over—about 50 percent of our kids vaping. The highest rate in the nation is on Hawaii County. What I didn't know is how easy it is for them to put THC and get high on these vape things that they're doing. I didn't realize, and I don't know if you realize this, the way they're marketing the vape juice—looks like they're bubble-gum flavor. It looks they're putting it in like apple boxes, things that little kids would be interested in. And they're very successful, billions of dollars are going to vapes. It's a huge business. MR. CHUNG: Since we're talking about vaping then, why do you suppose we have the highest percentage in the nation? Have any guesses? MR. ROTH: I would say that I think we have a community that kind of is pretty open to recreational drugs. You know, we have marijuana. But I think people are looking at this. MR. CHUNG: We have the highest marijuana use in the nation? MR. ROTH: I don't know if we have the highest marijuana use. I know we have a very high marijuana usage in schools. If you look at our school rates, we have a very high rate of marijuana, drug use comparatively to—excuse me, I think they're accepting a vision of a joint that has—I'll even go with the 25 percent. Not a cartridge that has 90-something percent THC, that's focused at, you know, like a methamphetamine high. I don't think that people see that. I don't think people are saying, "Oh, that's what we want to legalize." But that's what's happening in our State. MR. CHUNG: Well, maybe Joe guys can join in a lawsuit to go and sue the manufacturers. Right, Joe? Page 105 FC-8 April 17,2019 MR. ROTH: You got a great idea. MR. CHUNG: Okay, thank you. CHR. DAVID: Thank you, Mr. Chung. Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. Thank you, Mitch, Dale, all the staff that are here. You know, you're actually the first department head that I visited in my string of meetings with the various departments. I'm always impressed by your positivity and recognizing even in difficult situations, opportunities. And I just want to commend you for your work on the various cold cases over the years. As I sat here listening to you speak, and Lisa, I'm just thinking about the work that we've done over the years, you folks are all incredibly dedicated and proactive. And despite all of the stress and pressure that comes with being in that office, you're there because you're so dedicated and committed to the mission of creating a safer and healthy community. So I just want to say that I'm very moved and proud of the work that you do. So in taking a look at your budget, about$10.7 million, I noticed that your grant revenue was actually pretty high. When you compare it ratio to other departments, it's about$2.9 million. Do you have a grant writer on staff? How do you get all that money? You're sitting there laughing, Dale. It's just extra work you're doing? MR. ROTH: Right now, we have a temporary one. Most of those grants are, like Dale, Lea, Grant, Suzanne Tiapula, Lisa, Debra; there are a lot of us that are working. Because you don't have enough, you go look for more. So that's what we've done. We've been very lucky to obtain funding in other places. MS. KIERKIEWICZ: Well, thank you for your continued work on that front. In listening to my colleagues discuss the Spillman system, I think it just brings to light this bigger issue that we as a County are facing. I know that—in hearing your presentation, it's very clear that your office budgets for outcomes. You know what the goals are. You know the metrics, the measurable that you need to be hitting, so you align your resources to meet those goals. But it seems like there just needs to be a framework for the entire County to be doing things that way. Because you've pointed out systemic issues that we have, where you have a system that you're having to live with but not necessarily had any input in the creation or the curation of. So I just think that we need to be doing things smarter. MR. ROTH: I agree. MS. KIERKIEWICZ: This is why people lose faith and trust in government. If it requires an overhaul and changing of codes, I mean, I think we need to start Page 106 FC-8 April 17,2019 having those tough conversations and not be afraid of change. I mean, oftentimes change can be a good thing. We just have to be open to it. I want to go into a couple of details that you brought up. You mentioned strangulation cases. My understanding is there was a bill at the Legislature to define this in the HRS (Hawai`i Revised Statutes). What happened to that? Did that fail? MR. ROTH: It's actually defined in the HRS. MS. KIERKIEWICZ: Okay. There was something that you wanted to add, because my understanding was in strangulation cases there's an increase of those individuals then committing crimes or killing police officers. Correct? MR. ROTH: That's correct. MS. KIERKIEWICZ: Okay. MR. ROTH: So strangulation, I believe what the bill looked at, was the covering of the mouth and covering up breathing, as part of strangulation. If a person can't breathe, that's going to lead them suffocating and stuff. Right now, you have to block the airways. It would just help with the definition; so when a jury looks at it, they understand what we're talking about. And I think it did fail this year. MS. KIERKIEWICZ: It did fail. Do you know why? I mean, it seems like a no-brainer, and this is a way where we can further protect our community. MR. ROTH: You want me to do this, don't you? The explanation of our Legislature MS. KIERKIEWICZ: You're the one that said we should have these open, honest conversation, so I want it all on the record. MR. ROTH: We have that legislative building with the motive water. That motive water is charged with negative ions that suck the common sense. You know, that's . Sorry. You know, this year was difficult year for us to be at the Legislature. We just didn't have our personnel. Generally, the Prosecutors' Offices rely on the Honolulu Prosecutor's Office to carry the water. And unfortunately there were a lot of things happening at the Honolulu Prosecutor's Office this year. MS. KIERKIEWICZ: And they've lost a lot of credibility, yeah. MR. ROTH: Yeah, I think they have. Page 107 FC-8 April 17,2019 MS. KIERKIEWICZ: Asset forfeitures. MR. ROTH: Yes? MS. KIERKIEWICZ: So, I'm a bit concerned. Because we get$200,000 as a County right now, and it may not— MR. otMR. RICHARDS: Yeah, we budget$200,000. MS. KIERKIEWICZ: We budget$200,000. But typically how much are we receiving as a County? MR. ROTH: It could be about$50,000 to $200,000. MS. KIERKIEWICZ: So are we potentially in jeopardy of losing these funds? MR. ROTH: All of it. MS. KIERKIEWICZ: All of it. This is critical because it provides training, vehicles, surveillance, cameras, and bullet-proof vests. And so all of the money could potentially go to the State General Fund rather than to the counties. Is that my understanding? MR. ROTH: The way this will probably work, is the Police will forfeit the property, it will go to the Feds. The Feds will take the property and then give the Police money. MS. KIERKIEWICZ: So it goes to the Police Department? MR. ROTH: So partial to the Police,partial to the Feds. We won't be doing the work, so we won't be getting any of the funds. MS. KIERKIEWICZ: And then there's also change in—so no longer just providing probable cause but needing a conviction? MR. ROTH: Correct. MS. KIERKIEWICZ: Okay. Okay, so making things even more difficult. MR. ROTH: Yes. MS. KIERKIEWICZ: How can we better support Lisa's work? I mean, I know that we need to increase the collaboration that we do in the community. You know, I care very much about our island home because I have kids, and I want to make sure that they have the best possible experience growing up. I want that for all children. I mean, I take one to two days out of my month to visit the various Page 108 FC-8 April 17,2019 schools throughout the district, and I talk story with the kids, or I read them a book, because I want them to see that someone in my position cares. Oftentimes that's such a huge thing for them because they don't have someone in their life that cares. MR. ROTH: Right. You know, and I thought what we did this year by starting those meetings. I really encourage all of you to come meet people in the various agencies, like Lisa spends—all of you should really have a pretty good relationship with her because all of you have contingency funds pretty much going through our office. I know that we're not the only office that does contingency funds, but I'm pretty sure almost all of you bring contingency funds through Lisa. A lot of the great work that we get to do, we get to do because of your contingency funds. Does that make sense to you? So when she's running people down to get funds, and her frustrations and stuff like that, you guys don't get to hear about those things, but she makes some great recommendations. I'm still not looking at her because I'm causing her more work. She stays on weekends after work, too, oftentimes. But yeah, I think, really not just with our department but with all departments, continue what you started and going to meet with departments. MS. KIERKIEWICZ: Okay, I have a few more questions. A couple of them are technical and they have to do with your supplementals. So I was reviewing them and just doing some quick math. Is the total about$315,000-ish that you're looking for? MR. ROTH: I think if you add the supplemental you have in your hand, the answer is yes, he says. MS. KIERKIEWICZ: And then the technology upgrades that you mentioned in your slide, that's beyond what is requested in the supplemental? I just want to be MR. ROTH: Those are beyond. MS. KIERKIEWICZ: Okay, I just want to be clear on what your needs are. MR. ROTH: I've got toI'm hopeful. We've been having conversations with the Attorney Generals. I had to go to a meeting the other day, and just kind of digress again, and they were talking about having to return some of their money, so we said, "Wait, wait, wait, let me see if we can make that work." And so, we may be able to get some of our computers from there. But like our big switches and stuff like that that our tech guys are talking about, probably not. We are also looking for other ways of getting some of those things. But yes, we need them. Page 109 FC-8 April 17,2019 MS. KIERKIEWICZ: Okay. And then the last question that I have is regarding squatters. You and I have had conversations over the months about some code changes I'd like to be introducing, that would basically capture contact information for the various real property tax profiles to make it easier to verify if the individual that's on the property is a renter or really shouldn't be there. But is that enough? I mean, what else do we need to be doing from the County side and even on the State side to better address this issue with some real teeth? MR. ROTH: So thank you for bringing that up. I just want to bring this up to all the Council Members, because I think that is one of the ways that we can make a big difference on squatters, but on other issues. Right now, what she's talking about, is our County tax collects information if you own a house. Generally, it's the address where you can get in contact with the people. So what I was talking to Ashley about, was why don't make it that you not only have to give the house but you have to give a telephone number where you can be contacted. And then if someone else—like an emergency contact, when the police go out for squatters, the owner's not there, how do they know who the owner is? They need to show the owner didn't give them permission. But if you had this system that allowed us to collect numbersI think about—We just had a Civil Defense emergency. How does Civil Defense get in touch with anybody? You can map all the houses in that area. Send out a text message or something saying, "This is a Civil Defense emergency. A house is on fire, firemen go out there, how do they know if the owners are there, or everybody's there, or who's supposed to be there? They're able to contact the owner. So it was the only way I could figure that we can get that information. Because the problem with squatters that we have is we never know who the owners are. The police don't know who the owners are. It's very difficult for them to make a case. The idea was allow them to capture that information and use that information not only for squatters but for other information in the County. If they're behind in their taxes, send them a text saying, "Hey, you're behind. Your house is going to be auctioned off," or something like that. So there are a lot of other uses. I appreciate you bringing that up. MS. KIERKIEWICZ: Yeah. And thinking about that. It's beyond just emergencies, you know, natural disaster sort of alerts. We have Albizzia, which is a big problem in Puna and around the island, and so this is another way where we can follow-up with the owner and start to enforce some of the laws that we have on the books to mitigate that invasive species. You know, that's all I have. I just again want to thank you so much for all of your hard work and for being here and for answering the tough questions that the Council has put forth with. A lot of great thought. Thank you. Chair, I yield. CHR. DAVID: Mahalo. Mr. Kaneali`i-Kleinfelder, go ahead. Page 110 FC-8 April 17,2019 MR. KANEALI`I-KLEINFELDER: Thank you, Chair. Hi, you guys. Chair, I have a question for you. CHR. DAVID: For me? Go ahead. MR. KANEALI`I-KLEINFELDER: When we have these meetings, because I'm new to this, are we to stay on point to the budget or is anything and everything fair game? CHR. DAVID: We normally stick to the budget questions, but I think what they're talking about relates to the budget in one respect or another. So, I'll let you MR. KANEALI`I-KLEINFELDER: I was just wondering, because we have so many smart and well-paid people in this room. As we've gone through this, I want to make sure we use everyone's time efficiently. So just for me, thank you. I was wondering of doing being too far-reaching in the things that we think about every day but aren't necessarily related to your budget. CHR. DAVID: Thank you for your question. MR. KANEALI`I-KLEINFELDER: Thank you. So I think what Tim Richards touched on earlier, your total police reports referred to the Prosecutor's Office have gone down since 2014. And your total cases have decreased as well, but we are increasing the budget for your department. MR. ROTH: You can look at it that way, however MR. KANEALI`I-KLEINFELDER: But if he touched on it and I looked at it,just from looking at your visuals, I got that really quickly. I may not be right. I may be wrong. I don't know, but I'm asking the question. MR. ROTH: Sure. It doesn't necessarily mean that the amount of cases that each deputy is handling is different. These are the amount of cases that come into our office. All of those cases are screened. Not every case that comes into our office that's screened will actually be prosecuted. Before we prosecute a case, we have to believe that we can prove our case beyond a reasonable doubt. The other thing that we've been doing in the last several years, is that we've been moving into someactually, more and more complex cases, a lot of the cold cases. Like reviewing the SAKI(Sexual Assault Kit Initiative) grants, those cases aren't new coming into our office. We're going back and you know, we have a program, where we're looking at those. Page 111 FC-8 April 17,2019 We've actually started doing some of those cold case, sex assault cases, as well. Cases are going down a little bit, but also you have to understand where those cases are going down. A lot of those are in the Family Court Juvenile room. That's generally one deputy on each side, you know, actually in each of the three courts: Waimea, Kona, and Hilo. Probably the biggest drops have been in juvenile crimes rather than in the adult courts. We're still seeing a lot of cases. MR. KANEALI`I-KLEINFELDER: Okay. So, in case number, maybe like your police reports coming in too you may have gone down. Total cases that you're handling may go down. But you're starting to work on other cases in the background, as well? MR. ROTH: Right. So I would say that each deputy is still working on as many cases. Everybody is handling all that they can handle right now. MR. KANEALI`I-KLEINFELDER: Okay. And then you had some, I mean, substantially, from 2017-2018 to 2019-2020, we're looking at a pretty big change across the board. What is that? It's about$1.9 million from 2017-2018 to now, our estimated for 2019-2020. What are the raises? Oh not the raises, what are the increases going to get us? MR. ROTH: I'm sorry, I'm not— MR. otMR. KANEALI`I-KLEINFELDER: I'm just looking at the general. The General Fund expenditures to Prosecuting Attorney, we went from $8.4 million in 2017-2018 fiscal to $10.3 million in 2019-2010 fiscal year. MR. ROTH: So I think that part of that was the Salary Commission raised the deputies and myself. A lot of those people hadn't had raises for a long time. We also received a couple of extra positions on State funding grants. For example, on our VOCA (Victim Of Crime Act) grant, Restore of Justice. How many people did we get for the VOCA grant? How many did we get? So we have four about four Restore of Justice. Also, we had some Victim Witness bodies that came in. And also a grant, like the Agriculture Investigator, that was also grant funded. So that were different funds that came in. MR. KANEALI`I-KLEINFELDER: And your grant revenues did increase substantially too, right? MR. ROTH: So I think that's where you're going to see most of the increase. MR. KANEALI`I-KLEINFELDER: Okay. Budget 2018-2019, looks like we're going about$260,000 for Prosecuting Attorney. The basics, Salary & Wages, OCE (Other Current Expense),just from this last fiscal year, the year we're in, right, this next fiscal year, that is mostly ? Page 112 FC-8 April 17,2019 MR. ROTH: So it's that's about$200,000, you say? MR. KANEALI`I-KLEINFELDER: $260,000,just overall from your totals in 2018-2019 to 2019-2020. MR. ROTH: So part of that are the union raises; part of that are the other raises that the Salary Commission put in. MR. KANEALI`I-KLEINFELDER: Okay. So kind of the same, because we're getting that from a lot of different departments, too. MR. ROTH: Right. MR. KANEALI`I-KLEINFELDER: Okay. And then we talked about computers and getting Microsoft operating software on your computers. Where are you with that? MR. ROTH: So, I went to this meeting the other day. They had these funds, and so we're asking them for money for money, the AGs' (Attorney Generals) for money, that they were going to turn back. And it looks promising. We haven't gotten a complete yes yet, but it looks promising that we're going to get the funds from there. But right now, what he's talking about is we have computers that are sitting and can't be used because we don't have licenses in our office. So we're we don't just take no for an answer. We look other places. You want to give us some money? We'll take the money. But we're trying to find it anyway we can. MR. KANEALI`I-KLEINFELDER: Thank you. Just speaking to efficiency, I mean, from the moment I mean, the first meeting I had with you, and from a lot of other departments, in my ideal sense of the world is that all of the departments and all of government would all talk to each other and communicate well with each other. It keeps coming up and we keep touching on it that we don't do that. I understand that there are some areas we could be better at. I think that goes government wide. MR. ROTH: Absolutely. MR. KANEALI`I-KLEINFELDER: It would even go between our offices. And you touched on the Sunshine Law. So there are many ways we can get better. I appreciate any efforts that you and your department implement to get us better and get us more efficient. That's just I think that's just a given. If we want to work towards that as a Council, that's wonderful. But that should just be a given in government. So I'm just saying that's not really for you. That's just for everybody. So, thank you. And I really appreciate what you guys are doing. Page 113 FC-8 April 17,2019 MR. ROTH: Thank you, too. You're one of the people that came in, and I think we had some really good conversations and it made me think a lot. So, I really appreciate that. MR. KANEALI`I-KLEINFELDER: You opened my eyes too to a lot of the things. And I know different people. I know Lee, you know, you're at Relay for Life every year; and Lisa, I've been waiting on you for like 15 years, 10 years, since I met you and your husband. And I've just got you to know you and other people, so I just appreciate the people that you brought today. Thank you. MR. ROTH: Thanks. CHR. DAVID: Mahalo, Mr. Kaneali`i-Kleinfelder. Mr. Chung, go ahead. MR. CHUNG: Yeah, thanks. You know, I actually had a few comments. But before I do make those comments, I wanted to introduce to everyone here Riki Hokama from Maui County. Riki, can you please stand up? Riki is a former Council Chair from Maui County and also served a long time as their Budget and Finance Committee Chair. He was the architect of—oh, right, thank you very much—and he has a long-time relationship with Ms. Poindexter. Thank you very much. NACo president. First time in history, I think, that a Hawaii person was elected President of the National Association of Counties. Unprecedented. We invited him here, first so that he could observe our departmental reviews, and also to provide some input. Because he is the architect of the Maui budgeting process, which from all accounts is the standard throughout the State. I don't know if we want to go as far as how he's taking it. Maybe we can develop some kind of hybrid. But at the same time, we invited him so that he could talk to some of the Council Members. Particularly, he's going to be meeting with Mr. Richards and Ms. Kierkiewicz after our session today. But he's available to anyone else who wants to speak to him. But we just don't want to run afoul of our Sunshine Law, okay. But he's here as an observer and as a resource. And we really do thank him for accepting our invitation. Thank you, Riki, for coming. With regard to Mr. Kaneali`i-KI einfelder's question about, you know, how far afield we can go. You know, this process is actually a Departmental Budget and Program Review, so you can actually go as far as you want to in terms of talking the various departments about their programs. Really, this whole process, one the reasons why we have this in place, it's to satisfy one of the Charter requirements that, well, requires us to have, I think, it's yearly program reviews. It doesn't necessarily mean you have to ask the departments every single question regarding every single program that they have, but it's intended to satisfy that. So you can Page 114 FC-8 April 17,2019 go as far afield as you want, yeah. Also, I think there's a provision in the Charter that says that if the programs prove to be, lack of a better term, useless, then you stop funding, yeah? And then with regard to the squatter issue, I wanted to thank you guys; and thank you, Ashley, for bringing that up, because your office has really been proactive in that regard. Maurice Messina was actually heading that thing up and he would frequently you talk about communication, he would frequently call me because I had some problems in my district, too. We really miss him, but he continues to communicate with us as Deputy Parks and Recreation Director. He's fabulous. MR. ROTH: We miss him on my side, too. MR. CHUNG: He's really good. And that is an idea, the one that you had brought up, that he talked about early on, as well, and it's a good idea. But one thing there's one weakness to that, a lot of these squatters are identifying foreclosed properties. It's difficult getting the okay from the lender. We found out that to be a problem. MR. ROTH: It's huge. MR. CHUNG: But I know you guys are going to work on it. MR. ROTH: But if the lender had to put their phone number where they can be contacted, that would be great because even finding the lenders are difficult. MR. CHUNG: Sometimes the lenders have a realtor here. MR. ROTH: If they had to have an on-island rep,that would be great. MR. CHUNG: Yeah, but these realtors, they don't have the yeah, so that's something we can work on, we can make that a requirement. But once it gets into the foreclosure mode, it's like a real period of limbo, right? MR. ROTH: It really is. MR. CHUNG: So that's something we want to talk about. And then, you touched upon it earlier, and Ashley did too, the Career Criminal Division. MR. ROTH: Yeah. MR. CHUNG: The Prosecutors Office. I guess what you might have been alluding to was the situation that's going on statewide and certainly we're not going to be mentioning names here. But you and I talked about it, and your staff did. It's so important and you guys are doing a fantastic job in maintaining the public trust. Because statewide, you know, the situation on Oahu has really Page 115 FC-8 April 17,2019 struck to the core of the public's trust in law enforcement, the Prosecutor's Office. But I wanted to state publicly that you guys are doing a really good job in that regard. So thank you, Mitch. MR. ROTH: Thank you. MR. CHUNG: And keep it up. Alright. CHR. DAVID: Thank you, Ms. Eoff, and then I'm going to Mr. Richards. MS. EOFF: I think Mr. Richards had a quick question before I CHR. DAVID: Before you go? Okay, Mr. Richards, go ahead. MR. RICHARDS: Thank you. Thanks, Council Woman Eoff. Real quick, Mitch. You've touched on it. The number of cases coming in, slight decline; overtime, going up. Is your backlog increasing or decreasing? You're throwing in the cold cases here, which is great, which I want to by the way, commend you for that. Especially some of the old rape cases and all that, that's great you're going back. But what are we doing with the backlog? MR. ROTH: So our Screening Unit, they still have a lot of cases. It's hard to say what's going on with any one case. I got a call yesterday from the news about a specific case that happened a couple of months ago; our office got it. It's in screening. The deputy looked at the case. It just came to our office about a month ago, and he just looked at it. It hadn't got up to the top of his pile, but I asked him to take a look. That case is going to go back to the Police for further investigation. So sometimes cases can go back and forth several times. A well-known case that's happening in Waimea, where we've probably gone back and forth with the Police a couple of times. Not that they're not doing anything, but we're getting experts to take a look. So some of those cases can sit for a little while, and we only have a number of people that can review them. MR. RICHARDS: I got that. But what I'm saying is the backlog with all this overtime, are you starting to catch up at all or is it growing? MR. ROTH: Not really. MR. RICHARDS: Not really, okay. That was the question that I just wanted to clarify. MR. ROTH: Because it takes longer to get the information. I guess that's what I'm trying to say. Page 116 FC-8 April 17,2019 MR. RICHARDS: That's one of my questions. But I do want to commend you, and Council Chair, it was very good. Just as a statement, isn't it great that we have a Prosecuting Attorney who's expanding efforts to have programs where we end up trying to keep people from being prosecuted, meaning keeping youths out? So I just wanted to make that comment. Okay, I yield back to Council Woman Eoff. CHR. DAVID: Thank you, Mr. Richards. Ms. Eoff, go ahead. MS. EOFF: Thank you, Madam Chair. Earlier, Chairman Chung touched on this. I just feel like we need a little bit more discussion around these issues with switching to new software programs, either the incompatibility or the learning curve, or whatever it is. But you're not the first department that's come to us with this issue, yesterday we heard from Public Works and Planning. I'm just wondering how we get past this. There seem to be vague answers, like no real timeline for it and no real knowledge of what the solution actually is. But in your case, it's caused more overtime than you already were experiencing, which is the case load. And now, Mr. Chung's asking if you were to resolve the software program issues, will you really need more staff? I think you're saying yes, because you already had backlog issues. MR. ROTH: Yes, we had backlog before. MS. EOFF: And I'm sure that's the same in the other departments. But getting back to this problem with adapting to new software, whether it's our old systems not being able to handle or whether it's learning curve, I really don't have an answer that I've heard substantial yet. But is this somewhere we go to IT (Information Technology) for help? Do we bring in professionals? What is your take on it? MR. ROTH: I think with this system, hindsight it's always 20/20. I think one of the things that would have been great to happen is for us to be in on the planning process and talking, because it affects us. You know, when we look at leadership, which I think is super important in this County, we need to start looking at how your decision today is going to affect everybody else. So your decision—for example, in our department how that's going to affect another department down the way. And we have our executive staff meetings, for example. We talk about things that are happening in Victim Witness that are going to impact the deputies, so they have a chance to be a part of that. So on this one I think, in hindsight, if we were more hands-on in the planning and designing of that, I think that would have been very helpful. With our current system, we've had several divisions actually working with our designer. You know, we don't have what we want, but everybody had a kind of a Page 117 FC-8 April 17,2019 say of what we want, how we want it to operate, and how we want it to function. I think as we're planning future projects, whether it would be for Finance or for any department, people just need to look at how this is going to impact the final user. With every adversity, there's an equal or greater opportunity. This is a great learning experience for us. We're about to put in a system. We want to make sure that we don't have some of those things happen. It's caused us to maybe slow down. My staff will tell you oftentimes when I make decisions quick and I want to move a little bit quickly because I am impatient sometimes, but sometimes you have to slow down to get what you really want. Sometimes what you think you want really isn't what you really want. MS. EOFF: And I know Mr. Chung asked you to come back later so that we could have a little bit of a dialogue between you and the Police Department about that. Yeah, it just seems like a sort of a prevalent issue that we have in the County right now, not just your department, with transitioning, and how that sets us back. MR. ROTH: And I'll say this again, in defense of Chief, I think he's really trying to get things done differently. And I don't think it's his fault either, I think a lot of these decisions were made, you know MS. EOFF: We all know that. I mean, in the computer age, you know, there's a steep learning curve in anything, advances. And it's going to provide us efficiency later, but to get there, I guess, is a struggle. It hits financially and overtaxes your employees. So yeah, I'm not really sure what the answer is. I'm just noticing the theme. Thank you. CHR. DAVID: Thank you, Ms. Eoff. Anyone else before we move on? MR. ROTH: Thank you. CHR. DAVID: Thank you, Mr. Roth, and Dale Ross, and your staff, for coming. And I think what I'm hearing—and thank you, Council Members, for your input and questions regarding this whole process. The things you're experiencing are real because it affects everybody in this room, and their families, and their children. And I think what I'm seeing is not the the issue is coordinating everyone, all the agencies, in getting something that will work for everyone. I found it really surprising that you because you would be the end-user in this system, that your department, you know, could not have an input in what your needs would be. So this is a real eye-opening budget review process, I think, for everyone because I think we're trying to address some issues that have been ongoing for many years, long before we got on this Council. I think in the past we've been trying to Page 118 FC-8 April 17,2019 resolve it piecemeal, but I think the though process now is, I think, we are all connected; and if we do not perform connected, then we're going to keep doing the same thing. I think your department is the most critical because what happens or the result of what you do can make or break how we operate this County, too. MR. ROTH: Thank you. CHR. DAVID: So I think we have to be equitable in how address everybody's needs. Because that's our difficulty right now. Everybody's needs are very important. So, I really thank you folks for opening our eyes. MR. ROTH: Thank you. CHR. DAVID: I kind of regret that I didn't have a chance to talk to you, but I think we had a very great conversation today among my colleagues. And so let's work together. If you need anything, I think this is the time for us to really decide. If you need people, and that will get your department to the point where you are not strugglingI understand the overtime. I really do. I worked one year for a judge, and I swear, I know what you're talking about. It's the hardest work, and it's not something that you can say "I'll do it tomorrow." It has to be done because everything else depends on you. The police depend on you. The jail depends on you. Because if you don't get that paperwork done, nothing's going to happen. The court can't say, "I'll be back in a half hour because the paperwork's not done." So, I get that, and that's why I really understand and I'm very sensitive to what your issues are. Thank you very much. MR. ROTH: Thank you very much. CHR. DAVID: We're going to take a recess. Alright, we're in recess for five minutes. Thank you. Recess: At 11:03 a.m., the Chair called for a recess. Reconvene: The meeting reconvened at 11:16 a.m. (2) Human Resources_ CHR. DAVID: Aloha, Council Members. Welcome back. I'm taking the Special Finance Committee out of recess, and right now we have the next department which is Department of Human Resources. Director Brilhante,please introduce yourself and staff,please, who have joined us this morning. (Note: At this time, Human Resources Director William V. Brilhante, Jr., came forward to address the members of the Committee.) Page 119 FC-8 April 17,2019 CHR. DAVID: MR. BRILHANTE: Hi, Committee Chair David. Council Chair Chung I'm hoping will join us soon. CHR. DAVID: He will. He'll be right back. MR. BRILHANTE: And the other Council Members, good morning. I'm William Brilhante. I'm the Director for the Department of Human Resources. Today I'm fortunate to introduce to you my very hardworking staff. I have a bone to pick with Mitch as to which department is the hardest working, but we'll discuss that at a later time. CHR. DAVID: Yes. MR. BRILHANTE: He took long enough—he took enough of your time already. I'm hoping that the call for lunch reduces the number of questions you have for me. MR. RICHARDS: Let's just clarify this, the hardest working staff is ours. MR. BRILHANTE: We're all equally hardworking. CHR. DAVID: Thank you. MR. BRILHANTE: Anyway, Ms. Dee Ann Sadayasu is here today. If she could wave to you? CHR. DAVID: Aloha. MR. BRILHANTE: She's the manager over our Administrative Services department, and she is primarily responsible for ensuring that all the employee paperwork, salary adjustments,pay raises, retro-pay adjustments, you know, union contracts are finalized and adopted. She's also in charge of ensuring that the employees have proper notice of benefits, whether it be flexible spending or proper health care, and they process the retirement papers and the like, so she's a valuable member to the County, countywide. Second, we have Ms. Jennie Sakamoto. She has recently been promoted to the position of our Professional Development Manager, so she held the position for, I would say close to eight years—six years, where she was the manager for Classification and Pay Division. But now she's doing somewhat both. She spends about 50 percent of her time as to Classification and Pay, and Professional Development. Page 120 FC-8 April 17,2019 One of the things that I'm very fortunate and very appreciative to announce, is that one of the areas that has been raised over and over again you know, every time I went to a meeting with the Mayor or meetings with various department heads, was the initiation of a new manager's training supervisory training program. Jennie, right now, is overseeing that program. We have 31 mid-level managers and supervisors within the County who attend a bi-monthly training session, which Jennie, again, supervises. Our staff comes in, gives lectures and they provide discussion in various topic areas, from labor relations to conducting employee evaluations, as well as conducting proper investigations. We also have discussions with conducting proper recruitment, examinations, and just all of the various components and aspects of being, I guess the word is successful, in being a manager or supervisor. I think that when we look at attrition within the County, you know, there's a lot of senior employees who have an enormous amount of institutional knowledge, which were classified as the baby-boomer generation. As they move on to the next stage of their life, which is retirement, a lot of that institutional knowledge is lost. As our new managers, younger managers, younger employees get promoted, then again there's that necessity for continued education, and that's what this supervisory training program is, affording the County employees. Everything I hear today is all positive. The attendees of the class are very appreciative and very happy that we're providing this training, and I thank Jennie for that. At the completion of the session, each of the successful participants will receive a certification and acknowledgment that they have successfully completed the program. Next up, we Ms. Lee Botelho. CHR. DAVID: Aloha. Welcome. MR. BRILHANTE: She is our Labor Relations Division head; and by labor relations, if you want to get just a general background of what labor relations is, watch a soap opera. When you're done, that's labor relations. Joking, it's not that bad. But she does a lot of the Collective Bargaining contract interpretations. She answers questions for employees, for department heads, for managers; and fortunately for me, she's well-versed in each of the various Collective Bargaining agreements, and I appreciate that. After Lee, we have Ms. Julie Rawlins. She's here today. CHR. DAVID: Aloha. Welcome. MR. BRILHANTE: Ms. Rawlins, again, she's the EOO (Equal Opportunity Officer) ADA (Americans with Disabilities Act) Division manager. She addresses all of the various departments concerns as it relates to ADA issues, as it relates to reasonable accommodations, also as it relates to discrimination, whether it be—whether or not an employee is being discriminated or whether a member of Page 121 FC-8 April 17,2019 the public is being discriminated, because for whatever reason they're not able to avail themselves to governmental services. So she has a broad spectrum of clientele. Following Julie, I'm happy to announce that Mr. Waylen Leopoldino has rejoined the County. He had a stint for a while in San Francisco, and he was enjoying the nightlife, enjoying the beautiful area, you know, the various environmental beauties of San Francisco, you know, the Golden Gate Bridge. When Ms. Cabanas, who was with the County for several, maybe four decades, when she announced her retirement, I thought it was a position that we would have a very hard time filling. You know, Waylen's name came to mind, and when I offered him the position, I thought no way would he want to come back from San Francisco. But he said, `Bill, I'll take it,"you know, quickly. So I said, "Oh, why"? He said, "Because I want to work for you." No, I'm joking. I wish that was the case. He said "Despite you, I want to work for HR." After that, we have Mr. Ryan Chong. He's the head of our Health and Safety Section within the County. His primary responsibility is you know, we're implementing a county-wide safety program. He's helped established a safety committee with DEM (Department of Environmental Management), for example, when there's an accident or some type of injury involving County workers, he's responsible to ensure that either himself or his staff goes and does an investigation. It's not to look for "Oh, who's at fault, who's wrong." It's just to find out what happened and what steps we can take to prevent it from happening again. You know, that's what he's tasked with, and he does a phenomenal job. I wish he would ensure his safety a little bit better as he limps through here. But other than that, again I appreciate. And the newest member to my managerial staff is Ms. Sommer Tokehiro. She is our Workers Compensation Supervising Adjuster. Although she's not currently at a management level, we're working our way towards getting her that position to be there. She oversees the various and numerous challenges of the Workers Compensation Division or Section. She's only been with us for two weeks, so every day I go, and I check, and I make sure, "Oh, you came back, you came back, thank you." But thank you very much for joining our team, Sommer. I'm fortunate because, in my opinion, I have the ability to oversee the most important aspect I feel of the County, and that's management of our most valuable resource, and that is the Human Resources. That's our employees. Each of our employees are incredibly valuable. That's my mindset and that's the foundation for which we work, is that we treat them as being valued employees. You know, no different than a parent. You wish the best for your parent. You go out of your way to ensure that you wish the best for your kids. You go out of your way to ensure that your kids have the best opportunities, but there are times when they run astray. Just because we have corrective action or we have to investigate an Page 122 FC-8 April 17,2019 accident as to how we can prevent it, we don't throw them aside, we don't disregard them. We continue to treat them and protect them as valued employees. The second thing we do, is we are the resource for each of the departments. You know, as we draft the Form 13s, as we provide advice as it relates to labor relations, as we do the professional development, or the workers compensation, or the health and safety, or the ADA-EOO components. You know, we're there providing services to our clients, and our clients are the various department heads, deputies, managers, supervisors, employees, and to a certain extent, you know, members of the public. So, I'm fortunate to serve in this capacity. Our budget this year, nothing of significance. It's pretty much status quo from last year. Again like I said, I am really fortunate because I have such a fiscally responsible management staff. I'm not too sure too many other departments can say that. But my managers here, the reason I asked them to come is because they ensure that we are fiscally responsible. I think as a County entity, as part of the administration, but most importantly as it relates to being fiduciaries of the public trust as it relates to taxpayers' monies, I think that's a key component and it's very important going forward. I want to thank each of them for affording us that stance. Other than that, I'm happy to answer any questions. CHR. DAVID: Thank you so much, Mr. Brilhante. Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Chair. Thank you, Mr. Brilhante. I absolutely agree, you have assembled an amazing team with just a bandwidth of skillsets, from workers compensation to employee training. I just have to pause for a moment and appreciate what a great attitude you have. Because you guys are the touchpoint of people who we want to come into the County; and then once they're in the County, you are that touchpoint again as they move through their processes as employees. It is my philosophy that I want the County to be an employer of choice. That people choose to work for the County because they're proud to serve our community. With that being said, I have a question regarding—and it's more of a broad question. Because we keep hearing from other departments they can't keep talent in their respective divisions, whatever technical trade or as they move up the scale, because of pay, right? Can you give me some of your thoughts on that? Because I also feel that there needs to be some rebranding. People take jobs for all kinds of reasons and pay is not necessarily the main one. So how do we rebrand or re-message that you might not be getting what you want by way of a paycheck, but you get a whole bunch other support, or you get weekends off, or you get holidays off. Share with me some of your thoughts. MR. BRILHANTE: Council Member Lee Loy, thank you very much for the kind words prior to your question. As it relates to your question, that is a challenge. Page 123 FC-8 April 17,2019 Historically, as it relates to government employees and government entities, for the most part there's an issue as to whether or not—you know, how big can the scale be, sliding scale as it relates to salary and wages? For the most part, as it relates to wages, I have to comply and I have to play within the framework of the Civil Service Law, that's codified in the HRS 76 (Hawai`i Revised Statutes). You know, I'm one of the few departments, where my duties, responsibilities, and what I can and can't do, are specifically identified in the HRS, and I have to ensure that we're in constant compliance. The second thing that relates to your question, salary and wages aren't something that I come up with. I don't sit back in my office and sit down and say, "Oh, how much am I going to pay this guy or how much am I going to pay that guy"? Again, the HRS identifies bargaining units, which are the specific and sole representative for several classifications or majority of our employees. We have SHOPO (State of Hawaii Organization of Police Officers) for Police, HFFA (Hawai`i Fire Fighters Association) for Fire, HGEA (Hawai`i Government Employees Association) for our white-collar or clerical staff, and then we have UPW (United Public Workers), generally for our blue-collar staff and some blue-collar supervisors. As I alluded to earlier, they collectively bargain for their salaries. We have a salary schedule, which is codified in each of the Collective Bargaining agreements. Currently, we have two unions who are under a four-year agreement, and we have two unions who are coming up with—we're currently negotiating for a new two-year agreement because their CBA (Collective Bargaining Agreement) will expire in June of 2019, this year. So, those are the parameters that we set. And then, we also have compensation procedures within the County that we've adopted, and over time, we've tweaked here and there. But for the most part, we haven't had major changes to that because we're bound by rules and regulations as it relates to compensation. The only area where we have some latitude outside of Collective Bargaining, is where it relates to our mid-level managers or excluded managers. Again, I'm somewhat bound by the regulations as set forth in the HRS, where I can give them no less than their Collective Bargaining counterparts. So if the HGEA (Hawai`i Government Employee Association) worker gets an annual raise come July 1st of this year, then the EMs (Excluded Managerial) gets no less than, so their raises are set. And then the only other class which we kind of have discretion is, regarding the department heads, deputies, Council Members, and the administration, and their salary is set by the Salary Commission. Again, I'm an ex-officio member, so I sit on the commission, but I can't give any testimony. I can give recommendations, but I don't participate in any of the voting process. We're there more for informational purposes, logistical reasons, and needs. Page 124 FC-8 April 17,2019 Rebranding, that's a millennial word. But that's what we're dealing with, we're dealing with millennials. Salary, you're right. Salary might not be the most important aspect as to whether or not a highly well-qualified individual takes a job. So one of the things you know,just recently I've had a discussion with my staff—and they're all going to make frowning, mad faces at me because I'm bringing this up but one of the things we're kicking around, and it came to my knowledge that we're the only County that doesn't offer our staff some type of flexible work schedule. So one of the things that I'm looking at with my staff is developing a pilot program within my department, where maybe look at a four-ten week, where we have our staff work four days a week, ten hours a day. It equates to a 40-hour work week; same as five days a week at eight hours. But it affords an additional day within the week to take, you know, do something with your kids, or do something just for some mental health release. You know, go fishing, or jump on the tennis court, hit the ball around. It doesn't matter, whatever it does, but it will afford them that opportunity to have some personal free time during the week. So you know what, that's something that we're kicking around as it relates to, you know, kind of rebranding. And you're right, fortunately, historically, when we look at jobs like firefighters and the like, even Public Works, we do an entry level labor recruitment, or with Parks and Rec, Park Caretaker or something like that, we have an incredibly high number of applicants. So we know that there is a desire for a lot of the community to want to come and work for the County. The reason for that is oftentimes government sector salaries, and I see it because I give the reports to the Salary Commission, oftentimes government sector employees, when it relates to their private sector counterparts, for example take Mr. Kamelamela as an attorney, the government sector employees are significantly paid less than the private counterparts. So what do we have to offer? You know what we do, we have benefits to offer, which a lot of the attorneys or a lot of the private sector employees don't get. I think we have one of the best Employees Retirement System out of any employer in the State. We offer incredible medical coverage. We have flexible spending. Those are the components or the areas that I feel that we need to bring out to the forefront. And we need to say, "Hey look, this is what you get. Yeah, you might get this salary, maybe it's not top dollar, but look, you get these other alternatives," and some of them involve cost. But something like a flexible four-ten work schedule, really, what's the cost with that? You know, we're still going to be open five days and serve the public. So I hope that is a good response. Thank you. MS. LEE LOY: Absolutely. It's that innovative thinking, right? I don't know about a millennial, but we all have changing needs with our families, so to have some levels or degrees of flexibility becomes advantageous, right? It's how you Page 125 FC-8 April 17,2019 package that and how you brand that. So I do, I really appreciate hearing just some thought-provoking suggestions that maybe we can start some pilot programs. Because also too, the workday is very different from what it used to be; 7:45 to 4:30 is not enough. So that's why we have a robust web system where people are working late at night. So having this idea of a four-ten work week, where someone would be available at 5:00 when somebody else is getting off at 4:30 actually serves the public better, right? I think there are opportunities there. So, I really appreciate that thought. I'm going to step into a supplemental budget request that you had. You had two. One was for Workers Compensation, an SR-11 position; and then a second one for a Clerk III. One is a legal mandate, and I just wanted to understand that one better. MR. BRILHANTE: Thank you for bringing up the supplemental submittal. Actually, I have three supplemental submittals. I should have one for an Account Clerk, which would be through Workers Compensation section; I have one for a Clerk III, which would be in our Health and Safety; and the third one should be for a Clerk III, which would be in our general HR department. MS. LEE LOY: Yeah. And I just wanted to understand the difference, because the justification for your Account Clerk for your Workers Compensation and the Health and Safety said legal mandate. The box checked was legal mandate. MR. BRILHANTE: Yeah, I see that. MS. LEE LOY: Yeah. MR. BRILHANTE: And I thinkI have Dee Ann here, Ms. Sadayasu, to explain maybe more in detail. But my general understanding is, the reason that box was checked is because we are, as a County, we are legally mandated to manage the Workers Compensation Division. As these claims come forward, again under the HRS (Hawai`i Revised Statutes), we are required to process these claims, required to establish a treatment plan, report all the injuries to DLIR (Department of Labor and Industrial Relations), and the like. My understand is as it relates to Workers Compensation and Health and Safety, that's why that box is checked, is we're legally mandated to administer the Workers Compensation program per the HRS. But the reason for those two positions is, when it comes to workers compensation, we've—Ryan, maybe you can correct me—we've transferred over to us maybe about 15, 20 years ago, the management responsibility? Yeah, maybe a little longer. But prior to that, the State administered the Workers Compensation program. And as employees got injured, we forwarded that information to the State, and they processed everything, and they did all the legal requirements. Page 126 FC-8 April 17,2019 Then it transferred to the County. So, we established a Workers Compensation Division. It was during Mike Ben's time, and I'm sure that they were really happy that they were getting that additional responsibility. What's happened is, when I came in, to me, my opinion was that it was an area in which we could tighten our belts and we could better manage the system or the process and the procedures and the requirements fiscally. As you look in my budget, Workers Compensation has a budget of about $2.1 million, and you know what, that's nothing. But the offshoot of that, or the unintended consequences of that, is as the County is evaluated annually, you know, as it relates to our bond ratings and our fiscal soundness. Workers compensation and the amount of liability or potential exposure we have in our Workers Compensation Division is calculated into that assessment as to how strong the fiscal soundness of the County is. So each year our Workers Compensation Division is audited by an independent auditing entity that comes in. They look at our expenses, they look at our outstanding liability, they look at our exposures, and they make a determination as to whether or not we are properly managing that program. As it relates to that, we've had four individuals in that department for a significant number of years. My assessment of the situation is that in order to be fiscally responsible, we're talking millions, we're so short-staffed that we're throwing away millions to save thousands. And I think, through the evaluationI had my Classification and Pay staff come in to conduct an internal audit of the Workers Compensation Division. They came up with recommendations, they identified areas in which we could better improve the management of that division, and in reliance on that and in cooperation with them and sitting down and having all of my executive staff together, we came up with a reorganizational plan for the Workers Compensation Division. Part of that reorganizational plan is the identification of an additional Account Clerk to specifically be tasked, the primary responsibility will be to conduct the monthly audits, monthly reconciliation, as well as assist with the annual reconciliation as it relates to our expenditures, our liabilities, and our exposures. So, that's the rationale for this position. The Clerk III position for Health and Safety, the rationale for that is, what I did was again part of that reorganizational structure was I took a manager who was overseeing both Workers Compensation and Health and Safety, Ryan, and I transitioned him over to be the manager for the Health and Safety Division. So now, Health and Safety, the creation of a countywide safety program, you know, risk management assessments through, you know, accident investigations; how can we look at reducing reoccurring accidents and the like. You know, training. Ryan also gets involves with—when OSHA (Occupational Safety and Health Administration) in and does their investigation or inspection of Page 127 FC-8 April 17,2019 one of our facilities, either Ryan or his assistant Doug McCormick goes there, and they accompany the inspection, they address the OSHA concerns as it goes down the road. If we get a violation notice, they respond to the notice, you know, with the departments. And finally, they provide the annual required trainings for our employees. For example, when we had the lava flow and we were sending police officers to the roadblocks, to man the roadblocks at Leilani Estates or down in Pohoiki area, they required respirators. And in order to dawn a respirator, you have to be regulated. There's State and Federal regulations,where you have to be trained, you have to be fit-tested. Ryan went to the Pahoa Police Station for almost a two-week, you know, over a continued time of two weeks, a two-week duration, and he went, and he performed the fit test for every single police officer that went down and worked in the lava inundation area. That's just some of the resource and responsibility that our Health and Safety Division performs. Right now, I have Ryan, the Manager; and I have his assistant. I have absolutely no clerical staff. So that's the rationale and the justification for this Clerk III, to be assigned to the Health and Safety section in order to you know, as the training comes up, they can do the logistical work for the training. They can ensure that the attendees get their certification. They can ensure that, "Hey, this guy was certified to be able to perform this task a year ago, and that certification is expiring. We've got to bring him in for new training." They maintain the logs and the records for each of the training and the like. That's the necessity for that position. And then the final Clerk III is for the HR staff, each of these managers. Right now we have managers, we have specialists who serve under the manager, and we have HR assistants or techs, but we only have one Account Clerk in our office. The position request is for a clerk, to be able to assist the division heads with the clerical responsibilities of their division. That's the necessity for that third request under my supplemental submittals. Thank you. MS. LEE LOY: Thank you, Mr. Brilhante. I just leaned over to Ms. Kierkiewicz and said I'm totaling geeking out on this. But more importantly, how you underscored the importance of the risk and liabilities and how that directly correlates to our bond rating. I think that is such a profound statement, for the rest of my colleagues to hear how important the risk assessment part of what you folks do directly relates to the solvency of the County. I cannot thank you enough for underscoring that for this body. I did have just one other point. Yeah, one other point to make. I wanted to walk back to rebranding and looking at innovative ways. I think the other maybe food for thought, is I may not be a millennial, but I have an aging parent and so that too becomes a very important tool when people are looking at jobs and job opportunities, is the flexibility to care for their aging parents. So just another Page 128 FC-8 April 17,2019 innovative thought, if you guys are putting together pilot programs for different work schedules or different work weeks, you know, that's one more tool you guys might use to incentivize the ability to care for aging parents. MR. BRILHANTE: Right. MS. LEE LOY: So with that, Mr. Brilhante, I cannot thank you enough for all of the information you shared today. But again, underscoring the importance of what you folks do. It seems rather behind the scenes but it's a whole lot more than that. So, thank you again. Chair, I yield. CHR. DAVID: Thank you, Ms. Lee Loy. I'm going to go to Mr. Richards. MR. RICHARDS: Thank you, Chair; and thanks, Mr. Brilhante for being here. I guess I'll come at it from a little bit different perspective since I'm not a millennial, I am a territorial. Territorial, we were born in the territory. All kidding aside, some of the training that you mentioned. I've talked to other departments, and that's valuable, very valuable. I really do appreciate that. Council Woman Lee Loy touched on retaining employees and the challenge on that when we look at our conversation package. I don't disagree that having benefits is a good thing but sometimes it's not enough a thing, so that's not a solution we're going to come up with right here. Work environment is probably the most important thing. I'm coming from a private industry, you know that retains employees. When they like what they're doing, and they appreciate. When they feel appreciated, that's what holds on to our employees. I think we all strive in doing that. One of the things that I am concerned on, yes hanging on to employees is very important; because the cost of replacing an employee, most people don't realize how expensive it is. I usually in my mind figure costs about one year's salary to get a new person trained and running. If we had a high turnover, that's problematic for all of us going forward. One the of the challenges that's been coming to light, as we've gone through a lot of these conversations. is obtaining new employees. Specifically, the long circuitous procedural efforts we have to go through to enroll a new employee, and sometimes it's so long that a window of opportunity passes. Can you speak to that and give some insight? Are there ways to change this? Are there ways to speed that up? Can you address that, please? MR. BRILHANTE: Thank you, Councilman Richards, for the question. I think when it relates—as I contemplate a response to it, you know, your question, I always go back to what I recall and what I remember the Mayor telling me on my first day of work, you know, when I got appointed about a year ago. The first Page 129 FC-8 April 17,2019 morning I got confirmed, my appointment was confirmed with the Merit Appeals Board, he called me into his office. He said, `Bill, I'm going to just ask you to do one thing and that's all I'm going to ask you to do as manager. I'm not going to tell you how to do your job, I'm not going to tell you where to do your job. But I'm going to just ask you to do this. No matter what you do, follow the law. Don't ever deviate from the law." You know, I find that to be very important and very meaningful as I move forward. So as we keep that in mind, we are, you know, as a department, like I said, we're bound by the requirements of the HRS, the merit principle. The merit principle is that we are tasked with ensuring that we hire the most qualified, the best qualified candidate for a position. As we move forward with each recruitment,part of that process is affording as many people as possible an opportunity to be fully informed as to what the position is, what the pay is, and what the requirements of the position are as we do the recruitment to, I guess, in order for them to make a determination as to whether or not they want to submit an application or not. So we have that, you know,where we have to make sure that all the information as it relates to the position gets you know, the public is notified of it, you know, going forward. We're fortunate, where we have a software program, NeoGov, which Mr. Leopoldino, you know, his division comes under managing that software program. Now it's all on the internet, where all of our recruitments are conducted electronically. That's a much faster process than the old paper: filling out the application, carrying it into the HR office, and filing it. This is an electronic filing. It's there once the recruitment opens up. Anybody can access the website 24/7. They fill out the application online. They submit it online. When the application deadline closes, then applications are no longer accepted. And then, the vetting process. In addition to that, we also have a process where we have to properly vet each of the applicants. Just because somebody says, "I did a, b, c, d, e, and f, and therefore that makes me incredibly qualified to do this job. As a matter of fact, I might be over-qualified." We still have to go in—our staff has to go in and manually verify that, yeah, you did a, b, c, d, e, and f, and you should receive proper credit or points for that level of experience. And so that's another time-consuming component. Then there's the interview process, where the appointing department has to empanel an interview, you know, has to establish an interview panel, where they come in and they have to be you know, there's requirements as to whether or not the panel—your equal representation. You know, you're not one-sided where you have all women with a male applicant, or vice-versa, all males with a female applicant. So we all those legal components and requirements that we have to ensure that the departments are complying when it relates to the interview process, you know, the panel. Page 130 FC-8 April 17,2019 And then after that, once an individual is selected as the most qualified individual, then we have the requirements for reference checks, background checks. We have to—we're required—we have to contact at least three previous employers or points of reference that was identified. We have to ascertain, we have to inquire, and we have to kind of ferret out as to what their thoughts and their opinions of this employee were. Are there any red flags? Maybe some type of issues with workplace violence. We don't know. But by law,we're required. Because if we knew or we reasonably should have known that there was a red flag, then we had to have acted accordingly. So that's another component of the recruitment process that we have to comply with. And then finally, comes with the offer and acceptance of the position, getting the paperwork together. You're right, it is a long, drawn-out, arduous process, but we are taking steps to try and shorten the time where the involvement of NeoGov, our software service provider, is tremendous. That has cut down a lot of time. We don't want to be at so much of the cutting-edge or the forefront of decisions that we make in this process, where we expose ourselves to maybe, "Oh, we're not doing it properly." You know, because oftentimes one of the litigious areas of the HR arena is, "Oh, I didn't get this job because of this, or this, or this. Something went wrong with the recruitment process." So that's something we have to be mindful of. Going forward, we cannot make rash decisions. When we come up with an idea, when we come up with some type of process that may assist us in cutting down the amount of time because I tell you, I hear it just as much as you hear it, you know, "Why does it take so long to bring this guy on board"? I want to address that. But we have to address it in a reasonable and a sound manner. I'm glad Mr. Leopoldino is here hearing this because it's his division. You know, going forward, those are discussions. We've had discussions like that in the past, and we try to work with the departments as best we can. But we hope that there's an understanding of the limitations that we have. MR. RICHARDS: You know, I appreciate that explanation. My concern is that opportunities go by us. Because you have someone come in, they like the job, they're qualified, but the process is so arduous that they go, "You know what, I've got to get a job and I can't wait six months to find out if I might get a job." So I'll put that on your table, I'm not expecting a define answer. But I'd like to see a metric going forward that we've reduced the days of between—and whatever measurement we have there. Because, I think once again, retention is very important, but if we are so slow in recruiting, some of our best applicants may go by and say, "You know what, I've got this other offer." I appreciate what you're saying, because yeah, we're trying to protect ourselves and make sure we don't miss any glaring problem. But if we stretch it out so long, so we're so Page 131 FC-8 April 17,2019 absolutely positively sure there's absolutely no problem whatsoever, we may never hire anybody, and that's one of the problems. It's that balance, and I get it. But I think that's a challenge and again agreeing with Council Woman Lee Loy, our biggest asset is our people. Some of the phenomenal work I've seen out of the County employees as a whole is remarkable. We want the right people, but I don't want to miss the opportunity to get more remarkable people just because we were slow at the process. So with that, I'll go ahead and yield. Thank you, Chair. CHR. DAVID: Thank you, Mr. Richards. And then, Ms. Kierkiewicz. Go ahead. MS. KIERKIEWICZ: Thank you, Chair. Thank you, Director Brilhante and your hardworking staff, for being here. It's very appreciated. You know, I want to lean in a little bit on what Council Member Richards has pointed out with the hiring process. I also wonder if requirements are too stringent, and I bring that up because I've met a number of folks at the County. We really do have incredible people working here, but they didn't get in on the first time, and I thought what a loss. What a shame for that particular department or the County had they not been hired on the second time. So just food for thought, you don't really need to respond to that. But I just wonder if we can take a look at making it a bit easier to maybe relax some of the requirements without really comprising the kinds of qualities that we want to see in people working here at the County. I appreciate you painting a picture of the work that your department does, and I think by having these supplementals, that helps to take a look at the budget, which is very abstract, and the supplementals are now a set of glasses that bring the picture into clearer focus. What's interesting to me is taking a looking at your budget and the anticipation for the upcoming fiscal year, and it's actually down by a few percentage points, so I'm confused that you've made cuts. But there are requests that you made that weren't included in the budget proposal that was offered to us, so can you just elaborate on that? MR. BRILHANTE: Again, when we're talking, you know, the pennies, the nickels, and the dimes of the budget, generally I'm going to refer to Dee Ann Sadayasu. But just from my perusal and my understanding of why there was a reduction, I think, and you can correct me if I'm wrong, the reduction was primarily related to—and it was primarily, as I suspected and as I noticed, was that the reason the budget was down a little bit is because we have a vacancy or we had for a period of time two vacancies in our managerial staff level employees which helped us significantly reduce the salary and wages portion of our submittal, you know, for the budget. That's where that reduction is reflected. Page 132 FC-8 April 17,2019 MS. KIERKIEWICZ: I get that. But now you have additional money that could fund these positions, so I'm just wondering why—I don't know who made the decision for why these supplemental requests couldn't be included in the budget because they seem very critical in ensuring that we reduce the risk in liability on the County's end. MR. BRILHANTE: Well, my off-the-cuff response is Ms. Sako doesn't let us keep any additional money. I'm joking. MS. KIERKIEWICZ: She's shaking her head back there. CHR. DAVID: There is a reason. MR. BRILHANTE: No, no, no, I'll let—our original submittal was to—and every department was requested to submit a budget which was status quo and a second budget which would have been a three percent reduction. And you know what, we felt that a status quo budget was within our—we could make it happen, and so we submitted the status-quo budget. We were hoping that we would get a second bite at the apple with a supplemental request, and that's why you see three positions being attached to the supplemental request. You know, if you told me, no, you're not going to get the supplemental request, quite honestly, that's where we're at. And we'll make do, and my staff will make do, and our employees will make do like how we've been doing in the past. MS. KIERKIEWICZ: But at what cost? I mean, I hear you. But I feel now we are going to be burdening the staff that you already have and just causing more stress, which leads into another question. I love the fact that Council Member Lee Loy has brought up, how we're going to rebrand to really encourage folks to be working at the County. It's more than just salaries, but it's believing in the mission, and people working incredibly hard. Are there ways that—you know, you're looking at the flex schedules, the four-tens. But what about instituting wellness days, or as departments, as agencies,just working out? I mean, yesterday I saw a group of individuals walk and block at 2:00 p.m. Because we're having to dedicate so much of our time here at the County, doing group yoga or Zumba, 30 minutes or something, we need to be able to take care of ourselves so that we can take care of the community and the County. So again, maybe this is another pilot program that you guys can look into, and I'm sure maybe the Council would be happy to work in partnership to pilot that. A Couple other questions. You know, my first exposure to the County was at 16 years old. I was an intern with Mayor Harry Kim, the first time he was in office, and then when I was in college, I was a student helper at DEM (Department of Environmental Management). Can you share a little bit more about the Student Helper Program that's here at the County? Because we talk about not just retaining the employees we have, but also building up the next Page 133 FC-8 April 17,2019 generation, the next leadership workforce. I want to know what we're doing to expose students and other individuals that are interested in working at the County and being servant leaders. MR. BRILHANTE: Yeah, one of the formal programs that we have within the County is our CVE(Cooperative Vocational Education)program, where we partnership with Hawaii Community College, and we actually identify specific students who are taking whatever majors or whatever classes at Hawaii Community College, and we offer them the opportunity to come and work with various County departments. They come in, and they get paid salary. They set their specific workday, and it goes hand-in-hand with the classes that they're taking at the community college. We had a gentleman last semester who came in from the community college, and he was majoring in business. He was able to perform clerical work for our office. I think the Department of Finance has a CVE student, and various departments across the County have CVE opportunities. What we're finding is that although we have this opportunity, we have this resource available, for whatever reason we're not getting the level of interests from the college students that we've obtained in the past. That's another area that I've had discussions with our recruitment, Waylen. He gets thrown under the bus. You know, he's the new guy back, over here. We want to promote that program more. We want to see if we can expand that program to incorporate the University of Hawaii–Hilo business students and allow them to become formerly, you know, accepted into that program where it's a formalized program with both the Community College and University of Hawaii at Hilo. That's the formal process, the CVE program. Informally, each department has the opportunity to bring in interns. I know the Office of the Corporation Counsel; my understanding is each summer they bring in two law clerks or interns. They're not licensed attorneys. They're current students at—whether it be UH Manoa Law School—while I was there, we had students from various mainland law schools, and they bring them in, they're paid, they're full-time throughout the summer. They're assigned specific tasks, duties, and responsibilities. They draft memos and memorandums, and they accompany attorneys to hearings and commission meetings. You know, they just get a breadth of what is out there. And you know what, there are some of the interns we had previously I see at the Prosecutor's Office, or I see at the Public Defender's Office. You know, that's more of an informal program that the department has. So there's opportunities there. Do we want to develop more of that? Definitely. You know, we're engaged in discussions with UH-Hilo. We want to expand the CVE program, and we're desirous of this. I had a call just a couple of weeks ago, where an engineer student from the mainland is going to be a junior,well, she's a junior but she's Page 134 FC-8 April 17,2019 going to be senior. But she wanted to intern at Public Works, you know, through their Engineering Division over there. I contacted Mr. Simeon, and we were able to set up something; where she's coming in for a phone interview, although she's on the mainland now. We want more of those opportunities, because if we can get these college students—and they're qualified students. I know you started 16 years old; you were in high school. We want to, at as an early in age as possible, we want to introduce them to the County. We want them to say, "You know what, the County is a pretty good place to work." We want them to say, "Oh, I can be challenged there. I can grow. I can plan for my future through working with the County." It's through that exposure, I think. And that's how we're going to develop our(inaudible). MS. KIERKIEWICZ: Yeah, you hit the nail on the head. It all has to do with exposure. I think when they're here working behind the scenes, they see how much County government actually does, and it does present opportunities for them to elicit some creative thinking and to be part of the decision-making and solutions. The last thing that I want to ask you about; you know, over the last few months of being a Council Member, I actually received a lot of handwritten letters in the mail from County employees, you know, very anonymous, that have issues in the various departments but don't feel safe or comfortable enough to bring up these issues because of fear of retribution. So I wonder where your department is at with a hotline or whistleblower program of some kind that would give people that safe, secure place for them to be able to share what is on their minds. Because really at the end of the day I think everybody's here, very hard working and really here to serve the people, and they find ways in which the system could just be a bit better, or things need to change. But they don't want to say anything because they're afraid. MR. BRILHANTE: And, you know, you're absolutely correct. No matter how much I come here, and I expound on the virtues of how great it is working for the County and what a great employer we are, and how wonderful your retirement is going to be or your working conditions or your work schedule, well, that's all irrelevant if somebody, one of our employees feels that they're uncomfortable coming to work. To me, you know, the fear of retaliation or the fear of retribution, there should be no place for that in the County. With that being said, about six months ago or so we initiated you know, we started an investigation into looking at how do the other jurisdictions address that problem through the whistleblower. Because as you may or may not know, there is a provision in the HRS that affords protections for whistleblowers. But somebody's going to go and report malfeasance or somebody's who is doing something wrong and, you know, what do they have, you know, what's left there? They have their name on a piece of paper, and they're identifying a wrongdoer. Page 135 FC-8 April 17,2019 We sat down, and this was when Ms. Cabanas was still with our office prior to her retirement, and we started making phone calls. So we contacted the University of Hawaii, we contacted the City and County of Honolulu, he contacted the State, and we contacted other jurisdictions, and the information that came back to us is that there is a third-parry entity who, of course for a fee, and that's always the bugaboo, is that for fee they can go and create a hotline, which they would manage 24/7; they have the whole anonymity, you know, involved with somebody who reports something. There's currently a program within the City and County of Honolulu. That program is established within each of the eight University of Hawaii campuses, you know, even in the State. So, we've been in discussion with that entity. Again, at the end of the day it comes down to, you know, being able to one, identify the resources available; two, engage in the contract with them, The estimate for that cost is going to be between $20,000 to $24,000 a year for them to monitor and establish the—monitor the hotline. Secondly, and I think most importantly is, where should that reporting venue be? You know, do we put it in the Mayor's Office? Do we put it in my office? Do we put it where? You know, where does it get—where does that information—Where is the repository for that information? Who's going to manage it? Who's going to say, "Oh, you know what, this one, yeah, this one not so bad. That one, oh my goodness, we better investigate." Who's going to make that determination? And who's going to be able to ensure that the anonymity of the reporting parry is kept, and it's safe, and it's sound, and it's not going to be leaked out, or it's not going to be given back to the department head? So we've identified some departments that we thought that it might be a good fit. The Prosecutor's Office, unfortunately they seem to be overworked and underpaid, if I was fishing enough attention to the presentation earlier. No but realistically, their hands are full as it is. Their plate is loaded as it is. They have items falling off the side of their plate. They're really resourceful in that they can come up with grant funding. But wow, I think they're full, and I'm not sure how much more they can take. So one of the other entities we identified that might be able to assist is maybe the Legislative Auditor's department. They did a fantastic job with some of the departmental audits in the past. They seem to have a good grasp on the necessity, the rationale, and the justification for ensuring confidentiality. But we're in discussions again. You know, that's going to involve—okay, so we're paying the $20,000 to $24,000 for the software monitoring. Oh, do we now need to establish a new position, you know, for the department that's going to house this, a special position? Yes, each of the other jurisdictions have created a special position to manage the hotline, the investigation; you know, whether it be city or the university. Page 136 FC-8 April 17,2019 And so, those are some of the external decisions, and justification, and rationale that we need to consider going forward. So, we're at that stage. You know, it's tangible; it's in front of us. But, you know, the old adage, the devil's and the details, so we're kind of going through the details right now. MS. KIERKIEWICZ: Well, thank you for going through those details. I'm glad that it's on your radar and that we're having these conversations. I'd like to discuss it a little bit more as this budget develops. I don't if we're able to plug that into this upcoming budget, but it's worth taking a look at. I just want to make sure that—you know, our Civil Service workers who are boots on the ground, who are having to execute on the various department and agency work, if they see something that they have the ability to call it out and say something in a safe way and in a way that is consistent and transparent and transcends administrations. I don't want their concerns to fall on deaf ears or because they may or may not get along with a department director or whoever their higher-up is. I just want to make sure that we are able to capture those concerns and really investigate if they're warranted. MR. BRILHANTE: I appreciate hearing that. MS. KIERKIEWICZ: Yeah. MR. BRILHANTE: Thank you. MS. KIERKIEWICZ: Thank you so much for being here, and your staff again, for all of your work. Thank you, Chair. I yield. CHR. DAVID: Thank you, Ms. Kierkiewicz. Mr. Kaneali`i-Kleinfelder, go ahead. MR. KANEALI`I-KLEINFELDER: Hello, sir. Hello staff. I know that it's a qualified team. A follow-up to what Ms. Kierkiewicz said. To protect the employees, I've also heard the other side, which is when a head has an issue with staff, it's very hard to deal with some of the problems they're having, whatever the problem may be and for different reasons. Whether it's the Bargaining Unit, they would have to deal with union, they would have to deal with. Whoever it is, they have to deal with because there can be pressure that can be applied from the backend, when they need to deal with an employee who should be doing a little bit better than they do. MR. BRILHANTE: Yes. MR. KANEALI`I-KLEINFELDER: And that is in our best interest, to make sure all of our employees are doing everything they can. When we start pinching pennies on a budget, and as a business owner, I have to do that all the time. As a Page 137 FC-8 April 17,2019 manager of a crew, I had to do that all of the time. What do we have in place to help our heads and the bosses get people better every day? MR. BRILHANTE: You know, you raise a great point, a great issue. MR. KANEALI`I-KLEINFELDER: I'm sorry. It's almost lunch, so it doesn't have to be a long answer. MR. BRILHANTE: Sound like you've been talking to my staff. The thing they say is never follow an attorney or someone who is Portuguese, right? So unfortunately, I'm a Portuguese attorney. MR. KANEALI`I-KLEINFELDER: I'm getting that. I've been listening to you talk. MR. BRILHANTE: You get what you get. So merit principle, two requirements: higher the most qualified candidate for the position, and also part of the merit principle is to ensure is that candidate performs his job up to the expectations and to the satisfaction of the employer. So you're absolutely correct, there is a requirement that an employee,just because they're hired with the County, that doesn't mean they're done, they're good. You know, I'm going to serve my 25 or 30 years and I'm out the door. No, they have to perform their duties to the expectation of the employer. We have a process. What I've noticed when I was with Corp. Counsel, and these employee issues came up, performance issues came up, you know, Hawaii is a very union-friendly State. The unions in Hawaii are very powerful, dates back all the way to the sugar cane days. It is what it is. You deal with it as it comes. So with that in mind, there's a process and procedures that need to be followed to the "t" as it relates to terminating or discharging an employee. And if any one of those components are not specifically followed, the arbitrators in Hawaii will kick your case out. And what that does, is it sends the employee back to the department and it empowers them. It gives them even more a sense of—feeling of more power that, "Oh, I can cruise now man. I get the decision behind me." So, what that is—first thing we have to do is we noticed that JPRs, or Job Performance Reviews, need to be conducted regularly. and they need to be conducted efficiently and accurately. In Hawaii, everybody knows everybody, right, so nobody wants to be the bad guy. Even though you have a worker who's not performing to your level of expectation, you don't want to be the guy to ding him because his kids, brothers, nephews may be your brother's best friend. Because that's how it goes in Hawaii. That's one of the cultural components that we have to deal with. Part of the training that Jennie does, is how to conduct a proper job performance review for each of the employees. Page 138 FC-8 April 17,2019 MR. KANEALI`I-KLEINFELDER: I was at that training. Or not the same one. We had a harassment, the whole training session we did over at the Aupuni Center. MR. BRILHANTE: Aupuni Center, yeah. And that's why—first, is that education component. Let our managers, and supervisors, and department heads know what the requirements are. Train them so that they can sufficiently and adequately perform those procedurals requirements, and then hopefully the process will be smoother, and it would be more beneficial, and we will get the desired results more. You know, and that's my answer to the question. MR. KANEALI`I-KLEINFELDER: Do we have training for that for all of our heads? MR. BRILHANTE: We do. Well, we're developing training programs. As they come up, we'll be sure to notify you if that is something that you're interested in. MR. KANEALI`I-KLEINFELDER: Okay. MR. BRILHANTE: And we do County notifications, as well. MR. KANEALI`I-KLEINFELDER: Because to me the County is a really nice place to work. Even with some of our lower-paying positions, you know, $16, $17, $18 an hour, I've got guys working on the street who bust it every day make $10.10 an hour, yeah. With all the benefits that we get here—my medical here was wonderful, and I cannot complain. It's reallyI think the County is a very wonderful place to work. So on the other side of that coin, is we should all work just as hard for what we get. MR. BRILHANTE: Yeah. Thank you. I appreciate that. MR. KANEALI`I-KLEINFELDER: Thank you. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. I believe I don't see any lights. Mr. Kaneali`i-KI einfelder's very, very loud expression that we have gone over, and I really apologize for you having to wait and for your patience. I just wanted to say thank you for the discussion from my colleagues because what was brought up by Council Members Kierkiewicz and Lee Loy is very real, and so is Mr. Kaneali`i-KI einfelder's comments. I think your job is very difficult because you're the one that has to perform it equitably. You set the standard, and you are very bound by the laws that guide you on how you make these decisions. But regardless, these things are occurring. I thank you folks for all your hard work. I don't know if we have a solution or an answer yet, but I think the best we can do is try to achieve what they've described Page 139 FC-8 April 17,2019 and also what Mr. Kaneali`i-Kleinfelder has. So I thank you, Director Brilhante, and your staff. Thank you for being here today. MR. BRILHANTE: Thank you very much for hosting us. My last parting word is, I'm always available. If any of you have a question or just want to discuss something,just give me a call or holler. I'll meet with you on a person-to-person basis. We don't want to violate Sunshine Law. CHR. DAVID: Thank you for that. Thank you for that reminder. So, Council Members, we have two more departments that we're supposed to have done; Chair Chung is shaking his head. Research and Development and Information of Technology, I'm very sorry, but we're going to have to take a lunch hour. And then we're going to come back and resume with Research and Development first and then Department of Information Technology. I really apologize. But this is very important, and the reason we're taking really long is because there's a lot of information that we need to achieve from these reviews. Thank you so much for your patience. I will take this meeting—come back at 1:00? Sure, 1:00, yeah, that's fine. Is that okay, Diane (Ley)? Thank you. We'll be back here at 1:00. We're in recess. Mahalo. Recess: At 12:25 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 1:02 p.m. CHR. DAVID: Aloha, Council Members. Welcome back. I'm calling the Special Finance Committee meeting back to order. And we have on our agenda, the Department of Research and Development. (3) Research and Development: (Note: At this time, Research and Development Director Diane Ley, Deputy Director Ron Whitmore, Administrative Services Assistant Lois Nishida came forward to address the members of the Committee.) CHR. DAVID: So Director Ley, could you introduce the members present with you? MS. LEY: Yes. CHR. DAVID: Proceed. MS. LEY: Good after, Chair David and Committee members. My name is Diane Ley. I'm the Director for the Department of Research and Development; and with me today is Ron Whitmore, he is the Deputy Director; and Lois Nishida is, I always have to look at her title, she is the Administrative Services Assistant. Okay, alright. Page 140 FC-8 April 17,2019 Okay, thank you for this opportunity to present an overview of our budget for fiscal year 2019-2020. We'll quickly run through some slides, and then be happy to answer any questions, if that's alright with you? CHR. DAVID: Thank you very much. Sure. (Note: At this time, Ms. Ley provided a PowerPoint presentation to the members of the Committee. For viewing of the subject presentation, please see the DVD copy of the meeting proceedings on file in the Clerk's Office or navigate to the Council's video archives online in the County's webpages at www.hawaiicounty.gov. A hard copy of the presentation is made a part of the record, see Comm. 117.3.) MS. LEY: I think we're ready for questions. CHR. DAVID: Thank you, Director. Questions, Council Members? Mr. Kaneali`i-Kleinfelder, go ahead. MR. KANEALI`I-KLEINFELDER: Hi, Diane. Hi, Ron. Sorry, what was your name again? Lois? Nice to meet you. I think I've seen you before. Okay, Diane. So I have a question for Steve, or Diane, or anyone who wants to answer. How much do we spend on energy, for electric utilities in the County of Hawaii every month? Or do you want to give me every year? I know it's in here somewhere in here, but I'm having trouble finding it. MS. LEY: If not, I know Ron has high-level overview, and MR. KANEALI`I-KLEINFELDER: Somewhere, I saw it. MS. LEY: And some of the initiatives that we are working on to bring down the cost of County's energy. Take it away, Ron, while they look for the numbers. MR. KANEALI`I-KLEINFELDER: So while they're finding that beautiful number, which is actually pretty high MR. WHITMORE: Right, so—and I'd be surprised, actually, if it was on a single line item. It's probably spread across multiple agencies. MR. KANEALI`I-KLEINFELDER: Yes, I saw it. MR. WHITMORE: Oh, really? Great. Yeah, so I don't have that figure at my fingertips either. But we do no it's big. MR. KANEALI`I-KLEINFELDER: Yes. Page 141 FC-8 April 17,2019 MR. WHITMORE: I think we're the utilities largest customer. MR. KANEALI`I-KLEINFELDER: And they probably love us for that. MR. WHITMORE: They do, yeah. And we're actually a really good partner with the utility. We have a lot of very (inaudible). MR. KANEALI`I-KLEINFELDER: Yeah, I love them, too. MR. WHITMORE: But to get to what I think your point is, we're doing everything we can through our energy program to reduce those costs. MR. KANEALI`I-KLEINFELDER: Yeah, that was one of the main mission statements. MR. WHITMORE: Yeah, absolutely. And so we have a very close partnership with Hawaii Energy, who we all pay for through our electric bills, to focus specifically on energy efficiency. We have a partnership with them called Strategic Energy Management. So we're taking a holistic look at County energy use across all facilities to come up with a very strategic approach to reducing costs. In the near term, we are working very closely with several different agencies, particularly the larger energy users to reduce some of their energy costs. A lot can be done either for very low or no cost through existing rebate programs. So, that's the efficiency side. On the production side, you see throughout County facilities across the island examples of our efforts at generating our own power. Solar panels on this building, West Hawaii Civic Center, and the windmills pumping water in the Waimea area. We continue to look for opportunities to help the County generate its own power, and there's many opportunities for that. Increasing opportunities as well to do that, specifically in the transportation side to support our Mass Transit fleet. MR. KANEALI`I-KLEINFELDER: I agree. I mean, we talked a little bit about that, you know, combining of the Mass Transit or electric busses. There are a lot of different we can go. So I really like that. It's necessary, and it's good. Two of those put together is beautiful. I do ask because I know the PV(photovoltaic) system on this building was not working for about five months. Actually but when I came onboard, I just happen to check the inverter one day and it was down, and so I started calling around and then I realized that we knew that. I don't know that it's working yet, so that's why I'm bringing it up. Because not only as part of going green—as far the County's concern is important, but we need to make sure that we're upkeeping Page 142 FC-8 April 17,2019 and checking the systems that we currently have so that we actually are saving money the way we're supposed to. I believe the system on the roof should provide $4,000 a month in savings, so without it we're spending $4,000 more than we should. There was not check and balance to see why we're paying HELCO (Hawai`i Electric Light Company) $4,000 more than we were last month when it went down. MR. WHITMORE: Yeah, and that's one of the things we end up looking at very closely through this partnership with Hawaii Energy, is you begin to identify those issues within County systems. Because quite frankly, it's not any single individual's job to track on that sort of thing. Much of what our Energy Specialist does is coordinate across County agencies, trying to identify those key people who are actually getting the data, the information that would provide insight as to whether there are systems that are not working properly the way they're designed or whether it's big opportunities for energy efficiency or energy production opportunities. MR. KANEALI`I-KLEINFELDER: Agreed, so I really support anything you do as far being more efficient. As far as energy is concerned, especially the County, if we don't become the example then why would anybody else would want to follow suit? And it really eliminates our sustainability on oil coming in. not that we can get away from it for the time being, but we need to start doing it. Global climate change, whatever you want to call it. We need to work towards it. As far as some of your programs, which I realize I can talk about. Business Developmentno, sorry, Energy. We've only used 50 percent of our budget as of February, so we have another 50 percent of your budget which is $361,000 to spend towards energy. I was looking in theI realized where I was looking for this information was our Monthly Budget Status Report provided to us by the Finance Department. So we only used 48 percent for Energy, R&D (Research and Development). Let's make that 100. We also have risk. I wanted to ask, what is Risk and Vulnerability Assessment Volcanic Hazard for $225,000, we've used zero percent of? MR. WHITMORE: I can answer both of those. Although, I'm not sure I've seen the report you're looking at. MR. KANEALI`I-KLEINFELDER: You want to look at this? MR. WHITMORE: But the energy line item for current fiscal year is $183,000, in our Miscellaneous Contracts category. The 115 account? Page 143 FC-8 April 17,2019 MR. KANEALI`I-KLEINFELDER: This is our here, you want to take a look at it? Here, try take a look at this. I like this report because it shows us where we're at, and it shows how much of a percent of the fund we've actually used so far. MR. WHITMORE: Oh, I see. MR. KANEALI`I-KLEINFELDER: So they're maybe new programs. I was guessing some of those are new programs, some of those are not. Some of those are programs that we're supposed to be using in full. But either way, we haven't touched some of those. MR. WHITMORE: Yeah, so this not uncommon. And I'm not sure where the $361,000 comes from, the adjusted appropriation. But the accurate budgeted figure is the $185,000 or $183,000. So it's not uncommon for us to either make grants or be in the process of procuring services to advance problematic goals. But those contracts haven't yet been executed, so you don't see them reflected in that report as encumbrances. So that just reflects a portion of what we would plan to invest those energy dollars in for the fiscal year. MR. KANEALI`I-KLEINFELDER: Okay. I guess my only concern is that we're in February, so it gives you March, April, May, June. So you get four months left to only use some of them, like 20-some percent or 48 percent. So to get the rest of the way there in four months. MR. WHITMORE: And some of them, like the example you gave, the risk mitigation. That's part of the disaster recovery effort, and that's a single contract that was executed last Thursday. So that money is now encumbered. MR. KANEALI`I-KLEINFELDER: Okay, beautiful. So, it's spent in full? Done? Beautiful. And what about like Waimea? Waimea Needs Assessment. MR. WHITMORE: I'm not sure which that's referring to. MS. LEY: Is that the Waimea airport? MR. KANEALI`I-KLEINFELDER: No, it's a separate one for $1,200. MS. LEY: Oh, okay. That was a grant from the State. That contract should have—Ron, if I ? So that was a request from the State Department of Agriculture. The State had contracted with the Kohala Center to do an assessment of farmers needs in that vicinity, in particular with focus on the Lalamilo Vacuum Cooling Plant. So additional work was needed, and the State asked us, the County, to receive the funds and then subcontract out the funds back to the Kohala Center,just because it was a small amount, it was $10,000, and it was an easier procurement process for them, if you will, than going back out and doing a bid and then possibly getting a different contractor to finish that work. Page 144 FC-8 April 17,2019 That report I believe is due at the end of this year. It's a very important report because it's looking at, what are the projected needs for that agricultural community moving forward in the future? We've got a lot of farmers that are aging out, and we need to make sure that we are bringing on board State assets to support new farmers as well as new systems, including making sure that we food safety facilities available to farmers to be able to bring their products in, repackage, and sending them out. MR. KANEALI`I-KLEINFELDER: Thank you for that. I misread it. Sorry, that one actually been expended in full. MS. LEY: Okay. MR. KANEALI`I-KLEINFELDER: So, beautiful. (Note: At this time, Deputy Finance Director Steve Hunt came forward to address the members of the Committee.) MR. KANEALI`I-KLEINFELDER: Steve, you got a number for me? MR. HUNT: Yes, Council Member. For the record, Steve Hunt, Deputy Director of Finance. In totality, about$13.7 million, the bulk of which is coming from Highway Fund, and likely supporting the streetlights, most of which I believe had been converted to LED (Light Emitting Diode), that's $9.45 million. Sewer, for running the treatment plants, about$2.3 million. From General Fund, primarily building some Parks and Recreation, that's another $1.45 million. And then from all other, about another half-a-million. About$13.7 in rough numbers, and that's budgeted. MR. KANEALI`I-KLEINFELDER: That's our budgeted? MR. HUNT: Utilities. MR. KANEALI`I-KLEINFELDER: And utilities in full or just our electric? MR. HUNT: Electricity, I believe, but let me confer. But I believe that's correct. Ted Schrey is coming to confirm what utilities incorporate (Note: At this time, Budget Administrator Ted Schrey came forward to address the members of the Committee.) MR. SCHREY: Ted Schrey, Budget Administrator. Yeah, this is just a rough grab from the budget book because we'd really need to run reports to get everything. This is just electricity. There's probably another half-a-million to a million in real small offices all over the place. The Police Department and the Page 145 FC-8 April 17,2019 Fire Department and all of their locations where it's a few thousand here, a few thousand there, but it all does total up. MR. KANEALI`I-KLEINFELDER: It's a lot of money. MR. SCHREY: Yes. MR. HUNT: Yes, it is. MR. KANEALI`I-KLEINFELDER: The $13.7 million paid towards MR. SCHREY: Approximately. MR. KANEALI`I-KLEINFELDER: Approximately, give or take. MR. SCHREY: That's a low bid. MR. KANEALI`I-KLEINFELDER: Okay. And it's going to fluctuate and fluctuate with our actual cost on our energy bill. MR. SCHREY: Correct. MR. KANEALI`I-KLEINFELDER: The reason I' asking is because we have R&D here, moving towards being more energy efficient. That number stood out to me because that's part of what we can do as a County to be better and eliminate our cost. If you were to put$13.7 million towards the loan payments on our solar system or solar systems, or anything that was green energy, and you apply that money in a different way, we could see savings in five to ten years. That would be saving us, maybe half that. It may be big. So as part of your energy, yeah, thank you. As part of your energy, you know,part of your program,please take a look at that and maybe make a—let's make some headway there. MR. WHITMORE: Yeah,just so you're clear, we don't manage the County's energy systems. MR. KANEALI`I-KLEINFELDER: No, you don't? MR. WHITMORE: We have an Energy Program Specialist to try to support folks who are in a position to the manage the systems across the MR. KANEALI`I-KLEINFELDER: Right, yeah. MR. WHITMORE: And he's fairly new. We had a puka between Energy Specialists, so we had some downtime. For your point, exactly, that's why we also chose to focus two of the five businesses that we brought on board, Page 146 FC-8 April 17,2019 specifically on energy and transportation issues because we know there's really no shortage of things that we could be doing to innovate in this sector. MR. KANEALI`I-KLEINFELDER: I really appreciate that conversation I had with you guys. That was really nice. I still owe Riley a phone call. Just, yeah, let's do it. Thank you. I yield. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. I am now going to Mr. Richards. Go ahead. MR. RICHARDS: Thank you, Chair. And thanks, R&D, for coming. Good to see you guys again. Appreciate the follow-up that you sent me, so I really do appreciate that. Spring boarding off of Mr. Kaneali`i-Kleinfelder's. R&D is there to help us research and develop the right things and stop the wrong things. Understanding that everything we commit funds to are not going to work, but that's what part of our function is. Coming from the agriculture side, I do appreciate some of the work done here in the summary of what we're talking about. You and I, Diane, have been working for a long time together concerning agriculture. How do we improve this substantially? And what I'm looking for is growing industries, the whole Sharwil avocado, I think, is something that's untapped. All the research on that, the test projects on that are all very positive, but we haven't done anything to really ramp that up. Could you explain that to the Council so that they understand what we're talking about,please? MS. LEY: Yes. So the Sharwil avocadoHawaii has a lot of variety of avocados out there, and we do have local markets for it. But one of the easy things is for buyers to go with known marketable varieties that are tested. Things like Haas, which come primarily out of California and Mexico. So, there is a market locally. It runs about 70 cents a pound. If we can get product off-island into the mainland, the U. S. mainland, that's a real potential. Growers can receive up to twice as much in value, at Farmgate. But the challenge has been that avocado is a fruit-fly host. That being said, some of our mainland states do not want anything to do with that, in particular California. Hawaii, both the State and Federal partners as well as, I believe, the CountyI was gone at that time but—have pushed USDA (United States Department of Agriculture)to establish protocol to allow these avocados to go into some of the northern tier states. So protocol was established, and then but the growers were kind of like, well, okay we have to have a process in the field to harvest, to protect the fruit while it's sitting in the back of our trucks, or buckets, or whatever, and then take it into a packhouse that's screened off. The County stepped forward Page 147 FC-8 April 17,2019 because nobody had that infrastructure, none of the farmers, and they really didn't know if the market would work. So the County stepped forward. We worked with our partners at the Food Bank to establish a pilot project at the Honalo Marshalling Yard. That was about three or four years ago. We proved out that we could—the select number of producers could harvest according to protocol in the field, which basically requires them to bag in the field. They bring it in to a screened-in facility and then it is graded and called for a bad fruit or a fruit that obviously looks like it may have been stung by fruit-flies. USDA inspector comes in, checks the boxes and basically signs off, and then they go off to market. This product has been going out to Washington State. So that worked I believe for about a year, a year-and-a-half, two years I guess it was. And then another producer group moved into the facility. So the industry had to stand up itself. One of the businesses converted an old flower packhouse to be a screened-in facility, and they have been successfully working with five other producers. So now we see that the fruit is being received on the mainland. We met with a USDA inspector. He said, "I very rarely find anything I have to toss out. They were doing a great job of culling in the field and in this packhouse." So product is going out to the mainland during the harvest season for Sharwil. So, this is a real opportunity to grow that industry; but not everybody knows whether they have a Sharwil tree or not, so that's important to maintain the quality and consistency of the product. We've worked with USDA (United States Department of Agriculture)to do a DNA testing. We have that now. We know what a Sharwil fingerprint looks like. But now, if Matt has trees and Rebecca has trees, you know, they still have to get it tested, so we need to find a lab that will test at a reasonable price so that they can verify that tree is a Sharwil or that acreage is a Sharwil. That's one piece, so we're working on that. The other piece we're working on is to encourage more plantings of Sharwil. We're working with CTAHR(College of Tropical Agriculture and Human Resources) to do grafting classes because that's the cheapest way for producers to replicate the plant material, so we're hoping that will be successful. So bringing along existing orchards, making sure that they're Sharwil, and then also grafting more Sharwil. And then the third component of that to advance that industry is, are there a variety that we can take forward and prove to USDA that with similar protocol or a variation on it, they also could be shipped to the mainland. So that's an example of how we will continue to work with the industry over a number of years to advance. MR. RICHARDS: One of the this has been ongoing for probably six or eight years now. My question to R&D is, okay, so how do we take this to market? Page 148 FC-8 April 17,2019 How do we trigger that? They mentioned another producer group in the Honalo area, that's the Ulu Cooperative. We've got some great stuff that R&D's been working on, but we've got to get it to market, because we've got to get it out of the research and into the actual mainstream market. So I am asking—challenging you, that's the next step. We've got some good stuff coming, but I'm concerned that we're not moving it forward, at least not fast enough to really capture some of that, because if we want to grow the agriculture industry, we have to get it to market. I also want you to comment on, I can't remember what Silvan's official title is, but can you go over that? MS. LEY: Sure. Silvan Shawe is a contract employee. The funding came from U. S. Department of Agriculture, Food and Nutrition Service program and went through the State Department of Health. We brought her on board as an initiative, in partnership with some of the private sectors, partners, and Blue Zones, the Food Basket. MR. WHITMORE: The folks who come together are the Hawaii Island Food Alliance, a range of nonprofit and industry folks, interested in expanding food systems. MS. LEY: So the intent behind the funding for the position and the work that she's doing is to advance local foods and the consumption of them. Make sure that all families have access to food. You know, that's a nexus with the Food Basket and similar types of organizations. We are working pretty quickly to try to the alliance the Hawaii Island Food Alliance has been together for a while, but they are a diverse group with lots of different goals. So we've been trying to focus and figure out what they can do as a team or as individual teams, about four different teams in different areas, that again, will advance either access to food or advancing agriculture. In particular, not so much the production side but from the Farmgate. Actually leaving the farm, getting into distribution centers and markets and things like that. Does that help? MR. RICHARDS: Yes. Which again points the fact that we seem to have things aligned pretty well. The next question, and then what? So now, how do we take it to market to actually capitalize on some of this that you've (inaudible)? And that's what I'm asking to see; I know what you've done, but what I'm asking is how are we going to take advantage of what we've done? MS. LEY: Okay. Well, we're working as quickly as we can with the resources that we have. Agriculture and food is complex. It's a complex system; it has lots of variables in it. We have a very, very diverse agricultural system. Some that Page 149 FC-8 April 17,2019 does export and some that is focused on local markets. Some that doesn't have anything to do with food. So how do we get product to market? One of the systems—one of the big focuses is we've been looking at, what are the roadblocks? Where do producers have challenges? One is an individual producer produces product but doesn't maybe have the opportunity to research markets or get in a truck and deliver it to a diversity of markets. We will be, hopefully in the next few weeks to months, we will beI should say weeks, standing up a process to get us to some educational opportunities and then possibly an assessment of food-hub opportunities. I know that's part of Waimea, the Kamuela Vacuum Cooling Plants research that's going on, but we'll look at that as opportunities for other component parts of the island. We want to, you know, make sure that there's an interest. People understand what a food hub is, what the interest is, are there business partners that can stand this up or does government need to stand it up? If government needs to stand it up, what's the cost and what's the cost to maintain it over time. And is the County the right body to do that or are there others that should be doing that? So we'll be looking at that aggregation, if you will; and again, you know, private sector or government led. We also have stumbling blocks such as, more recently, the challenges with getting animals to slaughter facilities in termsso working through those. And I appreciate the leadership that Councilman Richards provided in addressing some of those issues. We also see the opportunity that there are slaughter facilities that are not being fully utilized, so we are stepping forward to explore opportunities to assist those organizations in either getting themselves organized or trained employees. We're working with HCC (Hawai`i Community College) to explore the opportunities to do both meat cutting as well as butchery classes. We think that there's an opportunity for some of the existing slaughter facilities to take on additional employees, as well as for the home consumption of animals, because we know that people are doing that so we would like to see them doing it right, you know, with appropriate safety knowledge behind what they're doing. MR. RICHARDS: Okay, and thanks, Diane, on that. Again, my point is we've got a bunch of research, that's half of your department name, now we've got to get to the development side, the market side, and push forth on that one. I'm not going to weigh in real heavy on the energy side because Councilman Kaneali`i-Kleinfelder has already touched on that, but that's also something that we need to keep moving forward on. So at this point, I'm going to yield to my colleagues. Thanks. CHR. DAVID: Thank you, Mr. Richards. Ms. Kierkiewicz, go ahead. Page 150 FC-8 April 17,2019 MS. KIERKIEWICZ: Thank you, Chair. Hello, Diane and Ron. So nice to see you. I feel like I see you all the time, but that's a good thing because I know how hard you are working. MS. LEY: This a different job that we have. MS. KIERKIEWICZ: Yes, you have a different hat on today. Often our discussions are focused around recovery. I just wanted to thank you because you've worn many hats over the last to support our community, so thank you. You know, my heart sings when I think about Research and Development. I just feel there are so many opportunities for our County and our island to be a leader, to be a model, to be innovators, to be on the forefront of so many things. Food and energy sustainability; being a leader and a model for the rest of the world for culture, and art, and education, and diplomacy, so I just get really excited. I appreciate this graphic that you've shared, and it's very heartening for me to know that you have a strategic plan. No one should ever underestimate a plan. It really helps to keep everybody on the same page and departments focused and on track. I want to know, because opportunities cost money, what more do you need to really start turning those gears and revving up our economic engine? MS. LEY: Well, I think that one of the things, and you mentioned it I think, is leadership, and there was another word you used, but really, it's about engaging people for them to see the opportunities. The opportunities to take risk, to explore, to do the new things that may have not been tested. And so I think that that's one of—the resources that we need may not be financial, but it's about that human engagement, and listening to one another, taking the time to learn, taking the time to listen. MS. KIERKIEWICZ: It's probably going take some resources, some capital, to create those hubs, right? Those hubs where people can come, and connect, and tinker, and collaborate. Okay. I mean, we can talk further about it, but I do want to know what other support your department might need to just take things to next level. MS. LEY: Okay, yeah. MR. WHITMORE: Exactly on those lines is part of the reason we put the effort into building an AmeriCorps VISTA Program (Volunteers In Service To America). Because if you're familiar with the program, it's got two main areas of focus. One is the programmatic area, and it's got to be within somehow poverty alleviation related. But the primary role of an AmeriCorps VISTA volunteer is to build capacity, and so we thought that was perfect. Because to answer your question, much of thein nearly everything we do, requires collaboration, and coordination, and capping the wisdom, the collective wisdom and energy, right? Page 151 FC-8 April 17,2019 So what we realized is we could use the VISTA volunteers specifically to play that role and to help strengthen, build, and capitalize on those connections, and the synergies, and the new insights, and opportunities that arise from more coordinated, more strategic, more focused collaboration. For me, the answer to your question fundamentally is we need to get better at working together in strategic way. And so we're trying to deliberately do that by bringing in high-value resources. MS. KIERKIEWICZ: And I love your VISTA volunteers. They are so dynamic and smart, and what an incredible resource for our County. We're going to get to that in just a second, Ron, about having those strategies and working in a morea less siloed way. You have a lot of priorities that you've articulated here. But I want to know if you can share, what are some tangible outcomes and what are the key indicators that you can share with us to show that we are making measurable progress towards meeting those outcomes? MR. WHITMORE: Well, this is my opportunity to talk about the difference between outputs and outcomes. MS. KIERKIEWICZ: Great. Thank you. MR. WHITMORE: So outputs obviously are easier to measure. You can count people that come to things, you can count things you produce, widgets, et cetera, so we try to be very mindful of those. You know, some of the measures that we use on that side is largely through the reporting we require of grantees, really showing signs that given what they said they were going to do, that they were successful at producing those outputs. On the outcome side, outcome is fundamentally a measure of goals. How well you're achieving your goals, right? And through various efforts in the past, whether it's the general plan reports that were matrix in indicators-based, you know, the Aloha Plus channel, which seeks to attract a range of matrix and indicators across broad sustainability goals. They're all fundamentally forms of a fuel gage or a, you know, thermostat. There are various measures that are proxies for how well we're generally doing across a given goal area, right? But it's extremely difficult in the absence of a researcher using the scientific method and strong statistical analysis to actually demonstrate the causation between any particular effort and initiative and movement of the needle, right? And so it's rare that we actually can tie in a cause-effect manner an activity and an outcome. We can guess about correlations. We can measure how things are moving relative to types and levels of activity, but the causation is very difficult Page 152 FC-8 April 17,2019 to demonstrate, particularly given the diversity of initiatives that are in place in any given time to try to move a particular needle. So, that's a long-winded way of we are very clear about the goals. We understand and try to be very mindful of the many indicators that we have at our disposal to measure how we're doing relative to those goals. But it's very difficult to make strong linkages between initiatives or strategies we choose to employ and shifts in those indicators. MS. KIERKIEWICZ: Okay, thank you. Diane, did you want to add anything to that? I also noticed your goals. What's the goal? A balanced and sustainable community environment and economy. I just hope, because I don't think that it's on here, that we can ensure that we have the cultural and equity lens put on, and when we are trying to achieve these goals, I think it's very important that all of our decisions be grounded in the impacts on culture and society, wanting to make sure everything is equitable and that we're lifting everyone up. I see I've got a few more questions for you. I was really happy to see that your office makes a concerted effort to push for collaborations with a private sector, and I wanted you to talk a little bit about that. Because yesterday when we had our discussions with Finance, you know, it was stated that this sort of motto is difficult to do, and it could affect our bond rating. So clearly, you have figured out a way to increase the amount of public/private partnerships that we are able to do. So I just was hoping you could talk a little bit about the work that your department does to sort of foster that. MR. WHITMORE: I think there's an important distinction to be made between P-3s (Public-Private Partnerships), from a financing perspective, which are probably what Finance is looking at, where you're actually bringing you're leveraging public and private dollars, say building a civic center, for instance, which is different from public and private partnerships, like food systems or energy, where you're collaborating as partners who share a common goal and trying to be strategic about leveraging your respective strengths to move towards that goal, right? So yeah, we have quite of bit of a track-record on the latter and are keenly interested in the financial side of it because it may be an area of opportunity but also some risk, but definitely worth exploring to address a range of problems. In one are that had come up for us, is in the energy and transportation sector, where there seem to be a number of opportunities for public-private financing opportunities, but absolutely not at the risk of our bond ratings or our financial stability. Page 153 FC-8 April 17,2019 MS. KIERKIEWICZ: Okay, that's helpful to know. And I know that your department has been in conversations with—is it Blue Planet Energy, and the potential for microgrid systems on this island? MR. WHITMORE: Yes. So they and other vendors have battery technologies that now we're using, being used to support stable PV (photovoltaic)plus battery microgrid systems. We had some very preliminary conversations about their experience deploying them in Puerto Rico post disaster and began a conversation about deploying them to serve the kipuka for Highway 132. Since then, we—HELLO (Hawai`i Electric Light Company) brought it to our attention that now that they've got powerlines or bringing powerlines back to PGV (Puna Geothermal Venture). It's an easy few additional poles, to then reconnect to their lines on Highway 132. They'll be restoring power to Highway 132 in the near term, so we don't need to pursue that any longer. But there are plenty of other opportunities around the island. NELHA (Natural Energy Laboratory of Hawaii) is experimenting with microgrid. And HELCO actually is developing a microgrid for North Kohala because they've done the cost benefit and figured out that it's more resilient and affordable for them to have a somewhat siloed inter-dependent system serving the Hawi-Kapa`au area. MS. KIERKIEWICZ: Okay, that makes sense. Just a couple other questions. So I see here that you have $325,000 earmarked for tourism. It's my understanding in the past it was closer to half-a-million, $550,000. If tourism is our main economic driver for the island, why aren't we investing more in it? And then also, if you could comment on the $2.5 million from the legislature that our island is receiving to market Big Island and how the flow of those funds works. Because my understanding is it doesn't go directly to the County, but it's going to tourism associations with the U.S. and Japan to promote coming to Big Island in those markets. MS. LEY: Okay. Yes, the County's tourism promotion and marketing budget was cut last year. The decision that brought that forward was, number one, all of our programs, in two years in succession, had taken haircuts, if you will, and one of them that was tourism had not. So we needed to trim, and so rather trim again with other program areas, we chose tourism. And this was again in 2017. The industry was going great guns. I mean, last year when we were doing our budget, we were looking at 13 percent increase in 2013 over 2016 numbers, okay. So the industry was maxing out on most of the islands, doing great business. You folks had heard from the Island of Hawaii Visitors Bureau Executive Director Ross Birch about that in the weeks before we came to you with the budget. So, we took that cut. Page 154 FC-8 April 17,2019 And then 2018, was on track early in the year to be another banner year. They were seeing a substantial—and projecting another 13 percent, so that would have been over a two-year period, a 26 percent increase. Well, then the eruption happened, so there was a stumble there with the industry. But now if you look at the numbers that the Visitor Bureau is putting out for this island, we are seeing comparative growth, if you will, to 2017. We know that parts of the industry are a little bit bumpy, such as the day trips from Honolulu. You know, the airlines have cut back on trips to the island, so we have fewer visitors coming for the day. That may also be driven by the fact that the National Park is not—you know, doesn't have glow, we don't have flow going into the ocean, as well as the park's footprint is smaller for the time being. So there are some adjustments. Because our budget was flat for the most part, we left it as is. We think that's a prudent thing to do. The Hawaii Tourism Authority (HTA), through the Hawaii Visitors and Convention Bureau, to the Hawaii Island of Hawaii put forward $1.5 million during the eruption for I believe they called it Disaster Mitigation Advertising, or promotion. That was very helpful. It got the word out there very broadly, both print and social media, as well as bringing FAM (Familiarization) tours out to Pahoa, to say it's safe to come here. We're really thankful for the proactive approach and the substantial resources they put forward. Now, more recently HTA has put forward the $2.5 million as you said for marketing initiatives on the mainland and Japan market. So again, we're thankful for that. Does that answer your question? MS. KIERKIEWICZ: Yeah, it does. You know, I hope that your office and other County departments are working in close partnership to really drum-up the community-based tourism element. MS. LEY: Yes. MS. KIERKIEWICZ: I know that's one of your priority areas. Last week my team and I had the opportunity to go into Leilani Estates and check out the visitor product, the experience that the community actually is curating, and it wasI mean, it was breathtaking. And because it was raining that day, I mean, it was hauntingly beautiful. It was very misty to look at Fissure 8, but it's quite a sight. And I really appreciate what that community is doing to really just step up and take ownership of their assets and resources and doing it in a way with culture and pono values in mind. So anything I think that the Council and County can do to expedite their ability to do that work, and work in partnership with the Visitors Bureau, that would be awesome. MS. LEY: So if I may,just elaborate just a little bit? So our tourism budget is not limited to the $325,000. That is a separate request for proposals we put out Page 155 FC-8 April 17,2019 for marketing and promotion, and basically, it's off island. There's a little component that is for conventions and meeting incentives for hoteliers on island to incentivize tour groups or conventions to stay at their place. But another chunk of our budget within the County is focused on local product development, and we definitely are focused on the place-based, community-based, values. Hawaii County, in partnership with the Island of Hawaii Visitors Bureau, we launched the pono pledge for the State, and now HTA is looking at us and going, "Whoa, we'd like to take this and tweak this," and we're like, "Well, wait, wait, wait, wait." You know, we want to enhance that product and get the word out further. We think that that's a very valuable marketing tool on-island. MS. KIERKIEWICZ: Great. And the last question I have, Ron knows it's one of my favorite topics, the CEDS, our Comprehensive Economic Development Strategy. And I just get worried because I've been involved for a number of years in the development of this plan, and it's one of these plans, I feel, sits on the shelf. Because at the end of the day we're articulating the same wants and needs for the future, but nobody walks away with a clear sense of how we're going to take action. So I'd love an update from you on where we are in the update of this upcoming CEDS because I believe we're about due to start looking at that plan. But I wonder how we can better align that with our General Plan and our CDP, and then creating an overarching plan for the County, where we as government know what kind of policies we may need to introduce or adjust in order to incentivize business and community to step up and start taking action. So, Ron? MR. WHITMORE: There's a lot in that question. MS. KIERKIEWICZ: Yes. MR. WHITMORE: So quickly, two things on the CEDS, specifically. You keyed in on what I think is the most important word in that is "strategy." In my mind, the purpose of the CEDS is to articulate a very strategic, deliberate document that has very clear roles defined. And that's both public and private, because there are many different players in the economic development ecosystem and we all have our roles, and I think sometimes we're a little fuzzy about those roles vis-a-vis each other. So it's absolutely our expectation that this next update to the CEDS will be very action oriented. Even down to the point like, you know, by this point and time we expect"x" agency or organization to accomplish this on our agreed upon path towards building out this, you know, the tourism industry, wherever the case might be. We have an opportunity with this EDA (Economic Development Administration) grant that we received for disaster recovery to set up a framework for that CEDS in preparation for the update coming in 2020 it's specifically one of the four Page 156 FC-8 April 17,2019 components, or four deliverables for that contract, and we'll be executing that in the next week or two. And then I just ran into Mary Ellis, the incoming OP (Office of Planning) Director, and as you know, that's the State Office that coordinates the CEDS updates across the State. We're on the same page in terms of how to make the absolute best use of what will be limited ADA (American with Disabilities Act) dollars that come into the State to support to support those updates. So be very thoughtful about scoping and identification of the contractor to make sure that we get the very best product possible. You referenced, also, alignment with our Planning efforts. I know a few people in Planning, so it would be very natural and easy for us to have some very close collaboration on that front. I'm of the mind that fundamentally the General Plan is an economic development and sustainable development plan. One of the most of the important things the County can do to advance economic development is to get land use right, to get infrastructure where it's needed to support residential, commercial, and industrial development where it's wanted, and so that's an absolutely critical starting point. So yeah, we actively collaborate with Planning on a number of things, and that's one of them. We have a meeting scheduled in the coming weeks as a matter of fact to drill down on those specific sections of the plan that relate to directly with some of the R&D program areas. So, we're very much of the same mind. MS. KIERKIEWICZ: Excellent. Thank you, Ron. And I like hearing that within the CEDS, we're going to have a very clear timeline, and identify very clearly what the expectations are, those measurables, so we can take a look at whose kuleana that is. And if they aren't able to meet those marks, we can have honest conversations about why. Was it for lack for resources or capacity, and then begin to address so that we can be meeting our targets? That's all I have. Thank you again for being here. I yield, Chair. CHR. DAVID: Thank you, Ms. Kierkiewicz. I see Mr. Richards' light on, but I'm going to take Chair Chung first. Thank you. MR. CHUNG: Thank you, Maile. You know, I know we're really behind. Because we have the Police Department, who was scheduled for 1:30, and we still got IT (Information of Technology)yet, right? But I just have a real short, either question, comment, and it relates to what Ms. Kierkiewicz was talking about, the tourism. You know, we've got about$2.5 million, right,just recently for tourism promotion? I just wanted to make sure. Ross, can you just up here for one minute? Page 157 FC-8 April 17,2019 (Note: At this time, Executive Director of the Hawaii Island Visitors Bureau Ross Birch came forward to address the members of the Committee.) MR. CHUNG: Just by coincidence, you weren't here, but I introduced Riki Hokama from Maui County, you know, he's the guru of all budgeting Council people throughout the State. But I kind of whispered to him, I said, "Hey, Riki, how much do you guys give to your Maui tourism people?" He said, "$4 million." Yeah, and we're giving—how much do we give you guys? Three? $300,000? $325,000. CHR. DAVID: Mr. Birch, could you please put your mic on and identify yourself for our staff? MR. BIRCH: Ross Birch for Hawaii Visitors Bureau. MR. CHUNG: Now, certainly, you know, I think$4 million is quite of money, and that might not be compatible with what we're trying to do on this island, but in comparison to $325,000—$300,000, what? MR. BIRCH: Yeah, $325,000. MR. CHUNG: $325,000, you can see a big disparity over there. But what was that$2.5 million for? Is it coming to you? MR. BIRCH: It's not coming to the Island of Hawaii Visitors Bureau or to the County. It's going from HTA to the two contractors that HTA has in the two markets; Hawaii Tourism USA, which is Hawaii Visitors and Convention Bureau; and Hawaii Tourism Japan, which covers the Japan market. Both of those contractors are taking a portion of that money and then spending it on programs that they've actually proposed to receive that funding in those two markets. MR. CHUNG: So what kind of control do you have over that? Nothing? Zero? MR. BIRCH: We support both of those entities with the branding. We provide for the island with support from our partnerships. So once there's like a co-op opportunity, or as it's been said, there's a bus tour that could be going along with this, so that if there's in-market sales and promotions, we bring our partners from the island specifically with that. So we're coordinating them on that side. MR. CHUNG: Right. MR. BIRCH: But the direction and contract is held within those two entities. MR. CHUNG: I see. And then more so from the State as well, right? Page 158 FC-8 April 17,2019 MR. BIRCH: Correct. MR. CHUNG: They're providing the direction. Not you? MR. BIRCH: We're supporting the direction. MR. CHUNG: Yeah, supporting, okay. So I just wanted to point that out. You know, I really think we should try to restore at least what we gave them before. What was it? $520,000? $550,000. Yeah, I think that would be a worthwhile investment. So if you guys—Diane, if you guys can just think about it. You know, brainstorm how we could find that extra money. And thencertainly, would like to see if we can get you guys back to at least where you guys were before last year. MR. BIRCH: Well, it would help for Hawaii Island projects. MR. CHUNG: Right. Right. MR. BIRCH Diane did an excellent job of explaining how the system works and how we use our funding. It is mainly intended for in-market promotions to bring them to Hawaii. But as we're seeing our partners taking a bigger role on that side, we're able to use some of those funds more locally and bring those back to the island and have them spent here in the promotion and creating different events and opportunities here, as well. MR. CHUNG: Yeah. Alright, thank you. CHR. DAVID: Thank Chair Chung. Mr. Richards, I'm going to go to Ms. Lee Loy. She hasn't spoken yet. MR. RICHARDS: Please. CHR. DAVID: Thank you. Go ahead. MS. LEE LOY: Thank you, Chair. Mr. Ross Birch, if you could stick around, please. Because I just want to follow up on what Chair Chung was talking about. Because I absolutely agree there's a huge return on investment, by way of providing you folks with money which generates GE tax (General Excise), right, fuel tax,just all these compounded opportunities. Do you have, and maybe not now, but do you have a return on investment number as far as $1.00 provided to this marketing and what the return on investment is? I'm hoping. MR. BIRCH: That's a really tough question. Even within the RFPs (Request for Proposals), we don't really quantify it in that form, where you show the direct dollar return on investment. If you look at it as a whole, and as much tours we Page 159 FC-8 April 17,2019 have coming in, we generate $2.4 billion in revenue towards the island. So $325,000 out of a County budget that's generated into $2.4 (billion) is less than a quarter percent. So it's that's about the only way I can quantify how you look at what your investment is versus what's your return, and those are the numbers. MS. LEE LOY: Could you just repeat that one more time? Because I think that is a good rational nexus, right, between $300,000, $2 billion, right? So it helps us when we think about the amount of money we want to put, even if it's just restoring it to $500,000, we could see a lot more money. MR. BIRCH: Well, yeah, from a County, specifically. You'd have to throw in the additional fund that we receive from the Hawaii Tourism Authority, the funds we get directly from HVCB (Hawai`i Visitors and Convention Bureau), all those are in there. For this past year, the last year-and-a-half, we got$4 million in recovery funds. We've received about$1.5 million as an organization directly from the State, as well, and then the $325,000 on top of that. So the return on investment is still substantial versus even if you combine all those amounts in there. MS. LEE LOY: Thank you. It's just food for thought as we have to move numbers around or think about how to accelerate some of the funding and create synergies. So, thank you for being here. MR. BIRCH: Just to kind of looking at it in—when you compare like a—well, what Chairman Chung had brought up, what Maui receives, but if you look at when we get to a point of how much is too much and are we having sustainable, responsible tourism moving forward, Maui also almost reached three million visitors in 2018. We stepped back a little bit, and we hit 1.7 million. Kauai was at 1.4 million visitors. So if you look at an island that could fit in the Puna district, having 1.4 million visitors, you understand the situation of where the capacity level is. We truly are from capacity, and we have far more numbers of rooms than other islands have as well, so we have that room for growth. We do need to look to look at the different product we have and being able to create the product and keep our parks and our facilities up to speed and available so that we can use those as sales tools, as well, so I mean, it goes hand-in-hand. What we use from a marketing standpoint has to be matched and supplemented from the product we're providing on the island. So I think we have a great opportunity for growth. We have a great opportunity to move forward. Any type of marketing funds we can use towards getting those numbers back would be great, but we also need to look at funding other resources to make sure that our facilities are where they need to be. MS. LEY: If I could just elaborate on Ross's comment, and also other comments that Council Member Kierkiewicz made, in terms of the private sector stepping up Page 160 FC-8 April 17,2019 and providing opportunities for visitors to visit to experience or the product, as Ross calls it product, some of us call it experience. But I think that as—our parks are limited and sometimes they become overcrowded, and so to manage that, if we can from R&D's perspective encourage the nonprofit sector and the private sector to provide opportunities on private property, and again, following all the rules, the zoning, and all of that. Those are real opportunities, I think, that can continue to allow us to grow while we sustain our quality of life for our visitors as well as our residents. MS. LEE LOY: Thank you, Chair. I yield. Thank you both of you for that. CHR. DAVID: Thank you, Ms. Lee Loy. Mr. Richards, go ahead. MR. RICHARDS: Okay, thank you. Ross, you might as well sit there a little while longer. Some of the numbers that you and I discussed, and just help me with my memory, as I recall during our discussion, our State was on track for about a six percent growth in tourism, visitor numbers, and the Big Island was on track for a 12 percent growth for 2018. Is that correct? MR. BIRCH: Yes, that's correct. MR. RICHARDS: And then May happened, and we hit about a 25 percent reduction in visitors. I know we had tens of millions of dollars of cancellations of rooms, let alone everything else. Long story short, tourism we finished 2018 sort of on par with 2017, is that correct? MR. BIRCH: About 2.5 percent down. MR. RICHARDS: Okay. Our economy took a huge hit, and we've been talking about the recovery. The tourism is somewhere, best guess and you and I have kicked this around and I've discussed this with Finance and R&D, tourism is somewhere around the third of our GDP (Gross Domestic Product) for the County as a whole. What Ms. Lee Loy was talking about was "bang for the buck" and return on investment. I'm a huge proponent of agriculture, everybody knows that. That's a long-term return on investment. Food security, et cetera, et cetera. But let's not ignore one of our economic generators, which is the tourism side. Guesstimate in numbers put together from talking to you and all, our economy took somewhere around a $400 or $500 million hit last year. If that's the case, investing in our tourism side is part of our recovery for the County as a whole. So echoing what Mr. Chung had said, concerning the investing into our tourism marketing, I whole-heartedly support that because that's all the right things. That being said, we have to have the product to deliver. So again, that's something we've got to look forward to, to come up with right policies. Page 161 FC-8 April 17,2019 I appreciate those numbers because that's what's been going around in my mind, so I appreciate this thing being brought forward. That's not why I turned on the light, but I participated in the conversation. So I appreciate that, Ross, thank you. Coming, backso, we're pau. It comes down to the food self-reliance side. And the numbers that I think we talked story, but we don't actually start putting numbers toI know we all miss Jeff Melrose and his mana`o when he came forth with that. But long story short, our County of 200,000 people, using national statistics, at five pounds of food per person per day, that's a million pounds of food that we need for this County each and every day. Tourism adds on about 25 percent. But that's why I'm so adamant about developing our agriculture programs going forward to market. Not just to talk story, not just R&D, but to market. You made comments about the Sharwil avocado and having the DNA testing and all. We have UH (University of Hawaii) here and Hawaii Community College, as well. This makes all the sense in the world, even PBARC (U.S. Pacific Basin Agricultural Research Center—Hilo). That's all right here. So I would ask that you come up with some sort of program. Let's talk story and figure out how to get that done, because short-term tourism/long-term agriculture. It's before us, we have the resources. Now let's get her done. I yield. CHR. DAVID: Thank you, Mr. Richards. I don't see any more lights. I really thank you, Director Ley. Deputy Director. Do you have anything to say, Mr. Schrey? Really? Okay. Before I close (Note: At this time, Finance Budget Administrator Ted Schrey came forward to address the members of the Committee.) MR. SCHREY: Ted Schrey, Budget Administrator. I wanted to make a correction to the record. In the rough grab for information and my writing down the numbers, there's what we call a decimal displacement. I didn't realize that we had somebody upstairs that could actually run the reports, but we did, and they are listening. So, I got the accurate numbers. It was in the traffic signal lights, so it was in the Highway Fund. Instead of$9 million, it's $900,000. But because we were able to run the reports, we captured all the small little locations that I was talking about, you know, the Police station and everything else. CHR. DAVID: Right. MR. SCHREY: So the total amount for electricity for all funds is $7.4 million. CHR. DAVID: Instead of$13 million. Page 162 FC-8 April 17,2019 Mr. SCHREY: Yeah, yeah, yeah. With about three-and-a-half of that being in the Special Funds. I wanted to correct that for the record and apologize for the decimal displacement. CHR. DAVID: Well, that's a big displacement. Thank you for clarifying that. Well you might want to talk to Council Member Kaneali`i-Kleinfelder, because we can convey the message, but we'll tell him that you corrected the displacement. MR. SCHREY: Sure, okay. CHR. DAVID: Okay, thank you very much. Alright, Director Ley, Deputy Director, thank you so much for being here and for your presentation. Council Members, I'm going to take like a two-minute recess. I need to go out and talk to before we take IT (Information of Technology). Okay, we're in recess. Recess: At 2:18 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 2:25 p.m. CHR. DAVID: Aloha, Council Members, and welcome back. I'm taking the Special Meeting of Committee on Finance out of recess. And right now welcome, Director Ung for your patience, and thank you so much for waiting from this morning. And I apologize. So when you're ready,please introduce your staff and proceed with your presentation. (4) Department of Information Technology: (Note: At this time, Information Technology Director Jules Ung came forward to address the members of the Committee. MS. UNG: Thanks so much for giving us your time and letting us have this opportunity to share some of the highlights that we think are exciting for you. I brought the team. Behind me is Betsy Lee Loy, System Support Analyst V; Kevin Norris, System Support Program Manager; Matt Iaukea, User Support Program Manager; and then I think you all know Jean, she's our new private secretary, Jean Muramoto. CHR. DAVID: Hi, Jean. MS. UNG: We brought our presentation today, which are just a few highlights to supplement what you've already been presented in our budget program. (Note: At this time, Ms. Ung provided a PowerPoint presentation to the members of the Committee. For viewing of the subject presentation, Page 163 FC-8 April 17,2019 please see the DVD copy of the meeting proceedings on file in the Clerk's Office or navigate to the Council's video archives online in the County's webpages at www.hawaiicounty.gov. A hard copy of the presentation is made a part of the record, see Comm. 117.4.) MS. UNG: So that concludes our visual presentation, and we're happy to answer questions that you may have. CHR. DAVID: Thank you very much. I'm going to go to Council Members for questions. Anyone have questions for IT? Oh, Mr. Kaneali`i-Kleinfelder, go ahead. MR. KANEALI`I-KLEINFELDER: Hi. So I got an email about three weeks ago. Someone did an internal poll, Lane Novak. Is she here today? Is Lane here? MS. UNG: Unfortunately, she is not. MR. KANEALI`I-KLEINFELDER: She is not here. So she did an internal poll, which was that was interesting to see if the new supervisor would be necessary or was wanted; 60 percent came back negative, 40 percent came back either positive or neither. But it was interesting that there was an internal poll done within the staff to see if that manager position was wanted or not wanted. I kind of like it because it gives you a very you know, you feel workers telling you yes or no, and it may not be desirable to have people doing that. But it is, to me, nice to see. MS. UNG: Yeah, it is transparent. MR. KANEALI`I-KLEINFELDER: Yes. MS. UNG: And I was aware of the poll. Our staff are very open about they feel, and very communicative. MR. KANEALI`I-KLEINFELDER: Yes, I got that. I did get that from that poll. MS. UNG: It was no surprise. It was no surprise. And if you ask any IT staff who are concerned with increased efficiency and our ability to address tickets, their answer would probably be we need more boots on the ground. MR. KANEALI`I-KLEINFELDER: Okay. MS. UNG: So, Helpdesk, basically. But maybe if we look at the big picture and we see how improved managerial oversight and long-range planning could actually leverage technology in a way that makes work for the frontline a little easier, so spinning less wheels, being more efficient. Having better workflows in place would actually help our situation as well in our ability to serve all of you. Page 164 FC-8 April 17,2019 MR. KANEALI`I-KLEINFELDER: Okay, fair enough. I thought I'd just mention that. I thought it was interesting. I'm using this as example, but the Monthly Budget Status Report. We get it every time we do a County Council meeting. And I'm looking in there, which is not included in any information that we have, it's not a piece of budget information that I have at my disposal. And you have Information Tech Equipment. Your adjusted appropriation was $256,000. You've only used 14 percent of that so far this year. So walking into four months left in this fiscal year, do you have a plan for the next$220,000? Or do you have any ? MS. UNG: We have a lot of major equipment that's currently in progress to be procured. MR. KANEALI`I-KLEINFELDER: Okay. MS. UNG: So all of it is earmarked, and all of it is spoken for. MR. KANEALI`I-KLEINFELDER: We do? We have a plan for all of that? We're going to use it all? MS. UNG: Oh, yes. MR. KANEALI`I-KLEINFELDER: Okay, that's good. That's good to know. That's what I wanted to know. That was my questions. Thank you. MS. UNG: Thank you. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. I'm not sure if it was Ms. Kierkiewicz or MS. VILLEGAS: Go ahead, Ashley. CHR. DAVID: Who was first? Ms. Villegas, go ahead. MS. VILLEGAS: Okay, thank you. Hi, thanks for being here. MS. UNG: Thank you. MS. VILLEGAS: And thanks for the training emails that came out on the website and whatnot. I had to chuckle because I got a strange email, and I was like, "What is this?" And then I clicked on it, and it said, "Ha, you've been tricked. You failed your test" Well, thankfully it was you guys. Page 165 FC-8 April 17,2019 Just really quick here. I just wanted to—one of the things that I'm trying to do in this process is take a look at the supplemental asks on top of what was included in the otherwise expenditure worksheet that we were given for all of the departments. So when I added up all of the asks in the supplemental documents here, it came to $972,352, which puts your—according to this spreadsheet, the increase in the budget that was being requested according to this spreadsheet was an increase in like 18.4 percent. But if this other almost$1 million, then increases it by 34 percent. I guess from an economy scale, I totally understand that catching us up, from an IT standpoint, will help in the long run, ideally save money, save time, increase efficiencies. I mean, in comparison to some of the other departments' budgets, it's a pretty high increase in percentage. I guess I just would ask point blank, what your levels of confidence are, if that's really going to take us into a next era of technologies that that will then provide for those returns on investment and greater efficiencies. MS. UNG: So speaking to the first part of the disparity between the increase in the budget presented to Council versus our supplementals, some of these supplementals preclude others. So for instance, MPLS (Multiprotocol Label Switching) manage services, if we get that, we don't need to renew our maintenance, for our Alkatel Nokia equipment because that will be included with our managed services. Additionally, with our ESRI(Environmental Systems Research Institute Software) EA (Enterprise Agreement)which will be presented to you on the 24h, that's our enterprise agreement with ESRI, who is the industry standard GIS platform provider. That enterprise license model will preclude getting 30 additional collector licenses. It pretty much opens us and lets us have almost unlimited licensing to deploy licenses and support projects like Vision Zero and other countywide initiatives for data management and EnerGov. MS. VILLEGAS: So like one of the departments have said, they have the computers, but they don't have the licensing on the Microsoft software. Does it apply to something like that? MS. UNG: Just ESRI licenses, so GIS licenses. MS. VILLEGAS: Okay. MS. UNG: Yeah. MS. VILLEGAS: Okay, thank you. That helps. MS. UNG: Thank you. Page 166 FC-8 April 17,2019 CHR. DAVID: Thank you, Ms. Villegas. Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. Thank you, Jules. It's great to see you. How old is our County network, the backbone that manages all of our information technology infrastructure? MS. UNG: It must be decades old. When was I-Net implemented? About 20 years old. Our I-Net fiber is part of a State franchise agreement, between the State of Hawaii and Spectrum. Spectrum provides the fiber, and the County of Hawaii provides the equipment, the switches to light it up. MS. KIERKIEWICZ: Okay. Do you think the network is efficient for what we're trying to do in the County? I mean, I think about how reliant we are in technology. I see someone shaking their head back there. I want to make sure that we as the County are a credible entity, and that we are keeping pace with the available technologies that are out there. So I'd like for us as the Council to know what kind of investments are needed to bring us up to the 21" century. And I wonder how much money is being spent to maintain a system that is so antiquated. I guess you don't need to give me dollar figures today, and maybe this can be a conversation for later, but I just get really worried about—because our network is inefficient, a lot of time is being spent to maintain it. How old are some our servers? I know that when Matt was asking you about the availability of the funds that are left for your department, you said it was earmarked. Are these going to be for new servers? What exactly is that money going to be spent on? MS. UNG: Let me address your first question. MS. KIERKIEWICZ: Oh, okay. Great. MS. UNG: As far as what's our greatest liability, it's an aging network. It's old infrastructure. Our greatest liability at this moment is the 22-mile fiber gap in Ka`u that goes through the Hawaii Volcanoes National Park. Ideally, for redundancy and the highest availability, we'd have a closed loop. You know, we'd have a ring. But that gap is something that's very well-known and recognized and it's something that we're all working towards. The DCCA (Department of Commerce and Consumer Affairs) is very well aware of it. The Broadband Advisory and Assistance Council works towards closing that fiber gap on an ongoing basis. It is scheduled to be closed later this year, and that will be a huge relief to us. Because then when there's spillover, then we can complete our MPLS network. And if a tree falls in Laupahoehoe, you know, we can reroute the traffic the other way around the island. Additionally, getting the equipment from Maui's network upgrade project was a huge advantage for us. Page 167 FC-8 April 17,2019 MS. KIERKIEWICZ: How old was that equipment? MS. UNG: That equipment is not end of life. It still has useable life. And Nokia Alkatel will provide the ongoing warranty and maintenance for it. MS. KIERKIEWICZ: So how many years of life are we expected to get out of that second-hand pre-loved system? MS. UNG: So while they don't provide a finite date of end of life when they no longer support it, they are telling us at this time that they will support it for the foreseeable future. Although the maker no longer produces those exact models, they are willing to provide the warranty and maintenance for us going forward, and that's key for us. If we are approved for our MPLS managed services that's within this budget cycle, that will give us the 24/7 monitoring and support to be proactive and for our partner to address network outages 24/27. And they would probably know before we do, which is really important because networks support public safety: Police, Fire, Civil Defense. And it becomes the backhaul for the microwave radio system, as well. MS. KIERKIEWICZ: Okay, thank you. The other question I had relates to the storage units for the various servers that your department oversees. The one at Civil Defense cause me great concern because it was pretty warm in there. I didn't really see any a/c (air conditioning) units. I did see fans blowing on servers, and I just feel like if it's in a room where temperatures are running that high, our systems are now working in overtime. And the life expectancy of that particular equipment, I feel, has been decreased because of where they're placed. I mean, what are the plans to be moving those systems into a better environment? The one at the County's Aupuni Center, I mean, it was freeze-butt off kind of cold. I saw two incredible a/c units, but I wonder what was the cost of those a/c units, and did we really have to purchase those to keep equipment that was old to begin with, and would it have been better to purchase new servers and equipment to maintain systems? Sorry, two-fold questions. MS. UNG: So Aupuni is our back-up location. It is in the tsunami zone. MS. KIERKIEWICZ: Yes. MS. UNG: So ideally, all critical applications and servers are kept at Civil Defense,just for operational continuity, if there is an event, so there is no chance of fiber break between the data stores and emergency operations. So that server room is also, you know, it's not ideal. Everything was moved there back in 2003 or so, when the last tsunami threat caused IT to take action and relocate servers from Aupuni. However, we are working on several contingency plans to build a new properly specked server room on location. MS. KIERKIEWICZ: Location at where? I'm sorry, at Civil Defense? Page 168 FC-8 April 17,2019 MS. UNG: Within the same facility as Civil Defense. MS. KIERKIEWICZ: Okay. Because my understanding is, you know, we as a Council passed monies for a plan to be created for the Moho`uli Dispatch Center which would house Fire, Police, Civil Defense. MS. UNG: That's a little more of a long-term project. MS. KIERKIEWICZ: Okay. MS. UNG: Which may not meet the immediate need. So build out currently at Civil Defense facilities, would be the interim solution. MS. KIERKIEWICZ: Do we have money in either County coffers, or are we getting grants from State or Federal government to make that build-out happen? MS. UNG: That would be a Federal grant through Homeland Security. MS. KIERKIEWICZ: Excellent. Thank you. MS. UNG: It's also Supplemental 3,just for our Smart Row, which would be an all-in-one power regulation battery back-up and a/c for our servers. MS. KIERKIEWICZ: Okay. I mean, I just want to make sure that we are putting all the right resources we need to IT. We are so technology reliant. I mean, I'm looking at your mission, and it talks about to ease anxiety. And I will admit, I get a little bit anxious when I get emails about Laserfiche being down or not accessible, so I'm thinking that with improvements to equipment, to the network, to the servers, we'll be able to ease those anxieties and to be able to have a reliable Laserfiche system. MS. UNG: Absolutely. Thank you. MS. KIERKIEWICZ: So, thank you. Chair, I yield. CHR. DAVID: Thank you, Ms. Kierkiewicz. Ms. Eoff, go ahead. MS. EOFF: Thank you, Madam Chair. Before I ask you my question, I just wanted to say that we really appreciate your staff in Kona, West Hawaii Civic Center. They are right there to help us all the time, and always can solve our problems. MS. UNG: Thank you. Page 169 FC-8 April 17,2019 MS. EOFF: They're not here today, but I'm sure all your staff here are the same. But especially appreciate the West Hawaii IT staff. MS. UNG: I'll let them know, and I'm sure they're listening. MS. EOFF: Besides that, yesterday we heard a lot from Public Works and Planning about EnerGov, a new program. That they're going to help. MS. UNG: Yes, a new building permit system. MS. EOFF: Yeah, help streamline their work. But they're having trouble adapting it to our system. I'm not really exactly sure what they're MS. UNG: Oh, we're still in implementation phase. So that means the current version that Tyler Tech provides is not compatible with our industry standard version of ESRI. MS. EOFF: That's what they said. Oh, okay. MS. UNG: Yeah, so they should be coming out with an upgrade next month, so we should MS. EOFF: That's not what this ESRI request is in your supplemental. MS. UNG: Oh, related, but not the same, yeah. MS. EOFF: Oh, I see. MS. UNG: This request, currently within our budget is just for an EA agreement, and that's an enterprise licensing model. MS. EOFF: Okay, but in the meantime, in the next month or so. Because we really couldn't get a definite handle on a date, or when MS. UNG: Tyler Tech has not provided a specific date,just a timeframe. So within the next, they are planning to come up with the upgrade for their platform. MS. EOFF: Oh, that's good to know. MS. UNG: And then today we heard a little bit from the Prosecuting Attorney's Office that there's another software implementation going on with them, between them and the Police Department, that's been difficult to transition to. Is that something that you guys were involved in, as well? MS. UNG: That's not something that we touch. Both Police and Prosecutors have their own IT staff. So yeah, you might want to follow up with them. Page 170 FC-8 April 17,2019 MS. EOFF: Yeah, we will. I guess that was all I had. Thank you. MS. UNG: Thank you. CHR. DAVID: Thank you, Ms. Eoff. Go ahead, Mr. Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Just out of curiosity, why do we have different IT departments within the County? MS. UNG: So there are some applications that are very specific to law enforcement, and they require their own staff to manage those applications. MR. KANEALI`I-KLEINFELDER: Does that create better quality and better functionality? MS. UNG: I can't speak as an expert for those departments. MR. KANEALI`I-KLEINFELDER: In your opinion? MS. UNG: In my opinion, we do share some applications in infrastructure, and on those shared services within the network, it is more effective to manage that centrally, and so we do. We manage Exchange, our email application, for all County departments, as well GIS (Geographic Information Systems) and Laserfiche. And there's a quite a few shared applications that we manage centrally. MR. KANEALI`I-KLEINFELDER: Do you collaborate with the other IT departments within the County? MS. UNG: More and more so, yes. MR. KANEALI`I-KLEINFELDER: Yes. MS. UNG: Communication has been opening up, specifically in regard to cyber security, because we have to. We have to be able to share information to be effective and to address the threats that are now out in the wild. MR. KANEALI`I-KLEINFELDER: Seems common sense, yeah? MS. UNG: Mm-hmm. MR. KANEALI`I-KLEINFELDER: Okay, thank you. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. Mr. Richards, go ahead. Page 171 FC-8 April 17,2019 MR. RICHARDS: Thank you, Chair. One of the big challenges that we as a nation and we as rural counties are facing is high-speed internet access. County of Hawaii, we don't have it. We have somewhat high-speed. It's a challenge across the nation. What are we doing to get all the communities high-speed internet? I'm not talking Downtown Hilo; I'm talking Downtown Pahala. MS. UNG: So while the County of Hawaii Department of IT doesn't specifically oversee high-speed broadband for the island, we primarily serve County staff, we do interface with some organizations that do represent rural areas. Specifically, there is a project that we are participating in through the DCCA (Department of Commerce and Consumer Affairs) called HI Wi-Fi and 808 Wi-Fi 33, and that is geared and targeted to low-income rural areas that are underserved or unserved. We help them to designate locations island-wide, and all of you were involved in helping us to identify those locations previously. That's an ongoing project. MR. RICHARDS: That's a pilot project that I recall, correct? MS. UNG: It is, yes. MR. RICHARDS: There is a program that has been kicked off by NACo, the National Association of Counties, and they have an app that you download called TestIt, What it does, is it measures. They just ask people, the citizenship, to hit it every so often and measure it, and it takes that data and is, not archiving it, but compiling it so we have a very clear picture of what we have across the nation. We talked about the drivers to economic recovery. I know a lot of jurisdictions, real jurisdictions, to get internet access for their—and it's typically schoolkids the counties have wireless internet hubs so that the kids can get their homework done. Because more and more we're driving towards—whatever you want to call it, cloud-base, or whatever. As part of your initiated direction, and as I said you don't oversee it, but is there starting to talk I'm sure in your circles you start talking about what we need to do to help support this and develop something along those lines. We've talked about that missing link over Volcano, and that's puts Pahala way out at the end of the line. Are you having these conversations as far as developing something more comprehensive or is that just not on the radar right now? MS. UNG: Definitely partnering with State entities as well as some enterprise entities such as Microsoft. They have really fantastic initiatives with tv whitespace, and that's something we're exploring right now with our government consultants. There are some good ideas out there, and we are engaging R&D as well, to identify ways to provide high-speed broadband access to the public. MR. RICHARDS: Okay, I just—we have an IT section. I think it's something we need to look at; if you compare what our internet speed is compared to Page 172 FC-8 April 17,2019 globally, Eastern European blocks are phenomenal compared to—we are really way behind. I think I would ask that be more of conversation sooner because I think we're holding back our young by not having that access. I yield. CHR. DAVID: Thank you, Mr. Richards. Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. I just have one more question. I made a note in the presentation about website. You know, Council Member Lee Loy and I, we work very closely with Diane Ley and the Recovery Team. They showed us some screenshots from the Kilauea Recovery website that's about to go live. Is the rest of the County website going to be reflective of what's being created for the Recovery Team website? Because if so, it's incredibly beautiful, and I'm excited. MS. UNG: Oh, thank you so much. Yeah, we've been working very closely with our web designer and development team, and we're very excited to roll it out. It will have all of the features that you've viewed there plus some. MS. KIERKIEWICZ: Okay. MS. UNG: Research and Development, we let them fly. We just said, "Hey, what can you do with this? Go for it." And, they have. MS. KIERKIEWICZ: Will it be mobile and tablet optimized? MS. UNG: Oh, absolutely. Mobile friendly for any screen size. MS. KIERKIEWICZ: I wonder if having this new interface will increase engagement from the community side? MS. UNG: That's one of our goals. MS. KIERKIEWICZ: Okay. MS. UNG: Increase community engagement. MS. KIERKIEWICZ: Okay. So with the new website refreshed and platformed, how are we going to encourage that? MS. UNG: So we definitely roll it out and make an announcement. We will be in touch with you so that we can engage you, and you can reach the public and you can help us promote. MS. KIERKIEWICZ: Okay. MS. UNG: Yeah. Page 173 FC-8 April 17,2019 MS. KIERKIEWICZ: Sounds good. Thank you again and thank you for your incredible staff. I know they're working really hard to get me some maps, and they're very responsive whenever we need them, help with some IT stuff. MS. UNG: Thank you so much. MS. KIERKIEWICZ: Thank you, Chair. I yield. CHR. DAVID: Thank you, Ms. Kierkiewicz. Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Chair. Thank you for being here. And I apologize, I had to step out a little bit; so if my colleagues have already answered this, I apologize if you have to repeat it. You mentioned if there's a problem, you get a ticket, right? Somethings wrong with my computer, we generate a ticket. And then you also mentioned that some of the systems stand separate and apart. You know, Prosecuting Attorney's Office and Police, they have some of their own systems related to some of the business matters as it relates to criminal records and those types of things. So if I generate a request to fix my computer, the ticket, you guys go and you fix it. Is that correct? Is that how that works? MS. UNG: If Sue Lee Loy puts in a helpdesk ticket, yes, we get it. MS. LEE LOY: Okay, but if Sue Lee Loy at the Police Department puts in a help ticket, do you fix it or does someone within Police fix it? MS. UNG: Oh, if it's a hardware issue, then someone in Police. If it's a software issue, that we manage centrally, then we would work with their IT staff to address the issue. MS. LEE LOY: And that's because of the sensitive nature of the type of information that might be contained within those respective departments? MS. UNG: Possibly, yes. MS. LEE LOY: So like CJIS, which is our Criminal Justice Information System, if they're problems with accessing that information, it would be handled with someone from within the Police Department. MS. UNG: That's correct, especially if it's a proprietary application. MS. LEE LOY: Okay. So I'm going to dive in a little deeper. Because we're also trying to stand up a new building permit process system. For the record, Page 174 FC-8 April 17,2019 because we're not sure if it's inner-gov, EnerGov or NeoGov. We're hearing a number of different programs. MS. UNG: Oh, this one, the building permit system is EnerGov. MS. LEE LOY: Spell it,please. MS. UNG: Oh, E-n-e-r-G-o-v. MS. LEE LOY: Okay. So earlier, I guess, yesterday we heard that system has been delayed, and we had hoped for it to go live some time, you know, second quarter into third, but we're looking at end of the year. Can you share what some of the delays are? MS. UNG: Sure, and Karen asked this question earlier. I'll just say the same thing, which is the current version of software that Tyler Tech has provided is incompatible with the industry standard version of GIS that the County is running. So they hope to have a system upgrade within the next month that will fix that issue. MS. LEE LOY: So we call that the patch, right? MS. UNG: Yes. MS. LEE LOY: So the GIS system is being utilized by Planning Department, correct? MS. UNG: Actually, it's countywide, so almost every department uses GIS. MS. LEE LOY: So including the Police Department? MS. UNG: I think the Police Department has a lot of data and would like to be able to leverage our GIS platform, so there's some training that needs to happen. MS. LEE LOY: Which leads me to the very next question. When it comes to training for all of these different systems, where does that money come from? Is it within each respective department or is it within each respective application contract of Criminal Justice System, or within GIS, or within, you know EnerGov, or within Office 365? Because I hope you see where this going. MS. UNG: This application's specific so ideally, I think for the future, we would definitely encourage departments to build that training within the RFP. Because, you know, then at least we're covered, and we know we're going to get the proper training from the authoritative source. Page 175 FC-8 April 17,2019 For other software, such as Office 365, like Microsoft software, our applications team is equipped to provide the training, and so that's been ongoing as we roll out Office 365. For GIS, that was implemented a few years ago, maybe in 2015. We are still working to get up to a standard countywide. So we're pretty excited. We'll be moving to 1990 Kino`ole Street, by Hilo Rice Noodle, within the next couple of months maybe, and we should have a training room there that will be accessible. One of our priorities is to provide GIS training county-wide. MS. LEE LOY: Yeah, I think this body is really struggling with the efficiencies, right, and cross-collaboration. And at the end of the day, every single employee is using a computer, right? MS. UNG: Right. MS. LEE LOY: And so how do we somehow maintain some of the proprietary information and the sensitive information that the Police Department or the Prosecuting Attorney's Office has to house but still provide enough funding for training of across all of the different employees? You don't have to answer that right now, but that's what we're trying to look at when we look at not only your budget and everybody else's budget, but just kind of, you know, high-level global optics on the use of computers. MS. UNG: Sure. MS. LEE LOY: Thank you, Chair. I yield. CHR. DAVID: Thank you, Ms. Lee Loy. Anyone else? Questions? No? Seeing none then, Director, I really want to thank you for your presentation and for enlightening us with the updates on our tech system. Most, well I'll speak for myself, people my age are not really techy, so I'm very confused. But I understand what you were saying. I have one question. On the DCCA HI-Wi-Fi Pilot Project, there's a balance of $100,00, is that going to be utilized before June? MS. UNG: I'm not sure if it will be utilized before June, but it doesn't expire in June. CHR. DAVID: That one doesn't expire? MS. UNG: Yeah. That one, yeah. CHR. DAVID: Perfect, that's what I wanted to Page 176 FC-8 April 17,2019 MS. UNG: We have some time to implement. CHR. DAVID: Great. Okay, I think that's it. Thank you for all you folks do, and always your staff is awesome, and Kona staff. Your staff, in general, always solves our problems. And I get the most spam mail, I think, in the County. I keep sending you these things; it's like, I can't believe these things are coming though. I don't even go on them. It's like, yeah, it's really but thank you for taking care of those. MS. UNG: Thank you so much. CHR. DAVID: That's frightening. Alright, Council Members. Thank you for being here today and for your presentation. I'm going to take a short recess, really quick. Okay, thanks. We're in recess. Recess: At 3:02 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 3:05 p.m. CHR. DAVID: Aloha, Council Members. We're going to get ready to start. I'm going take Special Meeting of the Finance Committee out of recess right now and welcome our Police Department and thank them for being so patient with us. We have running so behind today. (5) Police Department: (Note: At this time, Police Chief Paul Ferreira and Deputy Chief Kenneth Bugado came forward to address the members of the Committee.) CHR. DAVID: Chief, mahalo for your patience and for everyone waiting out there. CHIEF FERREIRA: Well, thank you for what you're. You know, it's no problem us waiting on—we're used to it. We're used to waiting around, I should say. Good afternoon, Madam and Council Members. CHR. DAVID: Good afternoon. Aloha. CHIEF FERREIRA: I have the honor this afternoon of being accompanied by Deputy Chief Kenneth Bugado. To the extreme right is Assistant Chief Mitchell Kanehailua. He's in charge of East Hawaii Operations, that is Puna, South Hilo, North Hilo and Hamakua. Next to him is Assistant Chief Samuel Thomas, in charge of our Administrative Bureau. That is all our support services. In the back is Major Andrew Burian. He's in charge our Technical Services Division. I heard some questions about computers and Spillman and Page 177 FC-8 April 17,2019 those things, so I brought him along just in case I can't answer it. Our Assistant Chief from West Hawaii James O'Connor took ill, so he's not here today. He covers Area II, which is Ka`u, Kona, South Kohala and North Kohala. And then the most important person here is Ms. Hauoli Aiona, our Finance Accountant IV, who keeps us out of trouble financially. CHR. DAVID: Aloha. CHIEF FERREIRA: I don't have a PowerPoint or anything. My computer just has my notes, so I could read it. I had it looking up, so I don't have to keep staring down, I apologize. CHR. DAVID: That's totally fine. Thank you. CHIEF FERREIRA: First, I want to thank you for this opportunity to come before you and respond to any questions that you may have regarding our budget submittals. I must say this has somewhat changed from what I'm used to, coming before the Council. Normally, we're looking at budget cuts or changes in our budget that—taken away from us. This is the first year, in a long time that I can remember, I'm actually coming here, and here is some significant long overdue increases in our budget. The increases that are included in our budget for the fiscal year 2019-2020 came about as a meeting that I had with Mayor Harry Kim on December 27h. At that time, Mayor Kim instructed to put in provide him with information as far as our funding priorities; what do we need going forward. Stop being a(inaudible) and say, "Okay yeah, we'll take here, we'll take there. Tell me what we need." So in January, about the 14'', I submitted to Mayor Kim our priorities, our funding priorities. And that was an easy thing to come up with, because for years we've been pushing back, pushing back,pushing back, and say, "Okay, we'll make do with what we have." So it was very enlightening that he said, "Put this through," and we did. And that is what you have before you. That's why I didn't have a supplemental budget to submit to you when asked. Our supplemental budget is actually included within our budget right now. Before going into, specifically into these increases, let me recap some of the challenges that had impacted our department in the past year. In 2018, our department resources, like the rest of the County, were impacted greatly, and we were taken to the end of all ends. For us, it began in January 2018, where a Puna patrol officer got shot in the leg while responding to an incident in Hawaiian Beaches Subdivision. Then there was the volcanic eruptions. It impacted everyone and taxed the County resources, and it's still impacting the County. And it impacted our patrol operations in the Puna District as everyone is well aware. Then the other disaster that occurred that impacted us was the flooding that occurred in April and in August of last year. Then finally, Page 178 FC-8 April 17,2019 the most devastating thing that impacted our department was the murder of Officer Bronson Kaimana Kaliloa. And to this day it is the darkest day in my career. And to this day we're still feeling the impacts of it, and we will continue to do so for a while yet. I'm proud to say that through all of these events the men and women, both sworn and non-sworn of the Hawaii Police Department, never wavered in providing the community with exceptional service. I know there are those out there that will totally disagree with my statement right there, and I'll be the first to admit that we are not perfect. There are a lot of areas that we can improve on, there are a lot of areas that we can change, but with the resources that our officers have and what they have to deal with and what our civilian staff has to deal with, I believe in my heart that they're doing an exceptional job. When you review our department's budget, you'll notice in the narrative form that we respond to the needs of the community. Whether it involves natural disaster, whether it involves having to change our goals and objectives, whether the implementation of new technologies or addressing Homeland Security, school safety, participating in public forums, we go—our men and women go out there and do it. All this wouldn't be possible without the dedication of the women and men from the Police Department. I would be remiss at this point if I didn't recognize also the outstanding efforts of our administrative and our financial staff. Monitoring our department's budget and keeping us in line, making the changes necessary so that we can effectively operate throughout all of these changes. And I'm also grateful to the command staff that I have out there, that is monitoring the operations in the field, and doing what they need to ensure that we stay on track with our budget. And they have been doing that. As I stated earlier, our budget includes some very significant increases that have been long overdue as it relates to sworn and nonsworn positions, funding to replace antiquated and unreliable video equipment in our detention facility, and funding for our department to proceed with a body-worn camera project, which I'm sure everyone is concerned with. At the top of the list for our increases is what I preached from the day I was appointed Chief. The top priority is our first-line supervisory positions. It was recognized in 2012 that the Hawai`i Police Department, when we went before the commission on accreditation on law enforcement officers, that one of the lacking—where we were lacking was first-line supervisors out in the field, and we need to address that. It opens us to great liability. The cost for a supervisor, it will be far less annually than a lawsuit that comes—arises because of lack of supervision. It is more in the areas of our smaller districts; North Kohala, South Kohala, Hamakua, North Hilo, and Ka`u. The positions that we are asking for now is just to stabilize the operations that we have out there. It is by no means "all what we need." For the most part, our research has shown that Page 179 FC-8 April 17,2019 approximately 44 percent of the time these smaller districts have been operating without a supervisor, and a supervisor needs to be called in from one of the adjoining districts. So you'll see that in our budget that we're asking for a lieutenant for the Ka`u district. We're asking for two patrol sergeants in the South Kohala, North Kohala, and Ka'u districts. We're asking for another patrol sergeant in the Kona, South Hilo, and Hamakua districts. Next on the list is, I know it will be put forth by Council Member Matt Kaneali`i- Kleinfelder as a request, a resolution. We have the increases that involve 20 additional patrol officer positions that is slated: 10 for Puna and 10 for Ka`u. It goes without saying that the District of Puna has come to be known as the fastest growing district in the State of Hawaii. That is without question. And the area that they patrol is equal to the size of Oahu. So the idea of having to need additional officers, yeah, it's a realistic idea. We have long recognized that in the department. That is the reason that when we do recruitments and when we fill vacancies, for years we have staffed Puna 100 percent with patrol officers. We've left the vacancies in the larger districts, of Kona and South Hilo, hoping to absorb some of that. But what is not recognized is the next district, the District of Ka`u. That is fast becoming the next Puna district in size, in calls for service, in area of responsibility. I don't know if you're aware, but Ka`u district is larger than the Puna district, yet, I have 17 patrol officers assigned to the Ka`u district at present, which means I have two to three officers on duty at any given time covering that area from Manuka to the National Park boundary. Now, if you've travelled that road, you know what a distance I'm talking about. Think of yourself being in Manuka asking for an officer's backup, knowing that your backup is coming 30 minutes away. So you've got to be really good at being able to talk your way out of things. That is the reason why we have asked for the additional officers in Ka`u. If you ask me if these increases, maximizes this is our patrol officer staffing positions and no more is needed, my answer would be absolutely not. Police work is inherently dangerous. It doesn't matter whether you're in Puna, you're Hilo, you're Kona, it can happen anywhere. Just look at what happened recently. In 2013, two South Hilo police officers were shot on Kilauea Avenue. In 2015, a North Kohala police officer was shot in the arm while responding to a domestic incident. And just recently, the incidents that occurred in Kona and North Kohala again. Now chances are, if you're working in the Puna District, Hilo District, or Ka`u or Kona Districts, there's a lot more going on; yes, your odds are greater. But it doesn't take away from the fact that no matter where you are on the island, if Page 180 FC-8 April 17,2019 you're wearing the blue uniform, your job is dangerous, and we need to recognize that. I know that there's some in the community, that they write letters to the editor. They make comments that the Police Department in Hawaii is way overstaffed. That they patrolled in California in large areas with only one or two officers on the beat. Well, I can compare that to when I came into the Police Department, and I was in Puna. Ten years—in 1982, I spent ten years in Puna. At that time, I was one of the very last officers probably to work a graveyard shift solo. Get your backup, stayed there until midnight. After that, you were by yourself, and they told you if anything happens, wait until Hilo arrives and go for it. Well, it's changed a lot, so I cannot compare what I did then to what's happening now. Same as what's being written. According to the Department of Justice, the estimate is 2.1 officers per 1,000 population. So with the population of Hawaii Island being little over 200,000, we have approximately, and with the increases, we'll have 481 officers, sworn officers. We'll have approximately 2.4 officers per 1,000 residents. This places our department, about ranking 27h in the nation, with the lowest being 1.6 and highest being 7.6. But if you take into consideration that these ratios are just that, ratios, and according to Department of Justice, you do not use it solely to determine staffing. You need to take into account geographical areas. You need to take into account calls for service. Where are your needs when you look at this? And not just go by ratio. You know, in addition to the increases on patrol divisions across the island, also included is we have another Police Officer III for our Traffic Enforcement Unit on the west side of the island. Currently, we have two Traffic Enforcement Units. One operating our of Area I, and one operating out of Area IL They handle all fatalities. They take care of all fatalities, and they run pretty much all of our special enforcement projects: DUI(Driving Under the Influence), roadblocks, distractive drivers. Right now, the staffing in Hilo is one Sergeant and four Police Officers III. The staffing on the Kona side, is one Sergeant and three Police Officers III. We want to balance it out. We want to make sure that they have the resources necessary so that the west side can operate the same as the east. They can operate independently of our Patrol Divisions. They don't have to contact Patrol and take the Patrol resources to do upper projects. The last one position that is included in our budget is the Police Sergeant to oversee our department's Body Worn Camera Program to implement here shortly, along with two Information System Analyst III positions. In adopting the use of body worn cameras for our Patrol Divisions, staffing needs to be there to perform the necessary maintenance, the data redaction, the collection of videos, responding to requests from the media and the community for these videos. In Page 181 FC-8 April 17,2019 talking to my counterparts from across the State—and by the way, we are the only county in the State of Hawaii that the Police Department has not deployed body worn cameras, which is why I'm coming before you with this, as well. But they told me that before you just implement the cameras, look at what you have. Make sure you have the people in place to take care of it. Don't implement and then look for the personnel, because now you're putting yourself behind the eight-ball. That's what we're trying to do. I'm trying to learn from my counterparts. It's always better not to reinvent the wheel then to try and go forward. And as well, body worn cameras, it's just another tool for law enforcement. It's to help to document all the interactions that officers have with the community. It's not a fix-all. It's not a silver bullet. It's not going to prevent everything that they think it will, but it's another tool for us. Next on the list of our personnel is two Evidence Specialists. These are positions that you might see on NCIS. If you watch tv, you know, evidence collectors, right? These are the people that, with all the high-tech equipment they come out and the take care of the scenes. Right now, our Crime Lab consists of one Criminalist III, two Criminalists II, and two Evidence Specialists IL They are based out of the Hilo station, where our Crime Lab is located. So naturally, the services are pretty much isolated to Area I, East Hawaii. In the event of a major incident on the west side, a murder, a homicide, a robbery, something that requiring their expertise, we will deploy them. But just think, it takes them an hour and a half, at best, to get across the island, to get to the scene. So because of the delay, we stand the change of this evidence disappearing. That is what we're looking at included in this budget, is to place two Evidence Technicians in the Kona Criminal Investigations Division that can respond directly. This will free up our detectives to do what they do best, interviews interrogations and investigating the crime, and let the experts deal with finding the evidence. The next positions that we are asking for within our department is for our Communications Dispatch Section. And since I'm bringing up dispatch, I want to pass this shout-out to the Council; to Council Chair Aaron Chung and all the Council Members, this is National Public Safety Telecommunicators Week, where dispatchers, 9-1-1 operators, are recognized across the nation. And I thank you for that Letter of Certificate that was presented to the dispatchers and a luncheon on Monday. It was very well received. And we need to recognize them. Their jobI could not do their job. They're on an emotional rollercoaster that I would not survive. We're asking for one supervisor and five new police—excuse me, Police Radio Dispatcher positions. Police Dispatch operates like our Patrol Divisions; 24/7, 365 days, 3 shifts a day. So my like our Patrol Divisions, if you want to place another dispatcher on the shift, I need of minimum of five new positions, and that will equate to one new Page 182 FC-8 April 17,2019 body on each shift. Absent, days off, holidays, vacations, sick leaves, those in nature. So right now what we have is, in our Dispatch Section, we have four consoles, radio consoles, that operate and do the 9-1-1 operation and emergency traffic. One is for the Kona District; that is all they do. The other is South Hilo, doubles with North Kohala. The other is South Kohala, North Hilo, and Hamakua tripling up. The next one is Puna and Ka`u, doubling up. What we're looking at is adding another radio console in the Dispatch Center. So we need that other dispatcher position to separate the Puna and Ka`u Districts. Puna is far too busy to be having to duplicate their efforts with another district. When something happens, we need that dispatcher maintaining communications with our officers in the field. They are the lifeline for our officers. That is the reason we're asking for these positions. The final personnel increase that we have in this budget is the Police Records Clerk. Now everyone might be saying, "Oh, why you need another Clerk? What do you need this for?" Well, as we've increased our patrol, our officer staffing or sworn staffing over the years, we've never increased our civilian staffing. We've always overlooked them. We figured they were going to make do with what they have. Well right now, since January 15, they processed 22,500 requests for reports. Another 20,000 requests for government records. That is a lot of paperwork that needs to be dished out. And now with technology the way it is, people are asking for electronic data files. That they have to look at. They have to redact. They have to prepare to get out. Under Administrative Rules of the HRS (Hawai`i Revised Statutes), we are required to produce those documents within 10 business days. This position will help us to meet that and taking away some of the burden from our current staff in there who are already doing overtime just to meet their daily needs. The next item that we've increased in our budget, and I believe it's Account 454, dealing with our computer upgrade. Yes, our computers need upgrade. Our systems need upgrading. Right now, it is a critical point that our computer network is all communications between Police, Fire, and other communications with the different districts we have around the island. Right now the system that we do have is antiquated, to say the least. And right now those spare parts or anything that we have on island that we need, if something was to go down. Now what you're talking about, is disabling our 9-1-1 system, our Emergency Response System. The next increase that we have in there is for our East Hawaii Detention Facility. Recognizing already, that police work in itself is highly litigious. We are adding to it, because right now our video recording equipment in the East Hawaii Detention Facility where we host pre-arraignment detainees, is unreliable. It's not recording when it's supposed to be; there's gaps in coverage. So if anything should happen and we need to go to these systems, there will be gaps in the Page 183 FC-8 April 17,2019 video, and we need to have it in place. It is also a requirement that we have this in place. Otherwise what it takes is having a warm body sit in front these cells and looking at what's going on or monitoring what's going on. This is just a recap of what we have asked for, like increases that we have asked for. And the Mayor has put into our budget for this coming fiscal year. I hopeI ask for your support in moving this forward and keeping these items in place in our budget for the next coming fiscal year. At this time, I'll answer any questions. CHR. DAVID: Thank you, Chief. Chair Chung, go ahead. MR. CHUNG: Oh, okay. Hey, thank you, Chief. You know, I really wanted to commend you guys. This is the first time that I've seen a Police Department come in with what I consider to be an aggressive budget request. I mean, it's not really a request because it's incorporated into the budget. But it's really aggressive, and it's intended to address the needs of our community. So thank you and congratulations to all of you guys. It's really the first time I've seen something of this magnitude. But I have a question now. You know when you guys say, "Ten positions in Ka`u, ten positions in Puna,"what exactly does that mean? Ten new officers or ten people on the beat at any given time? CHIEF FERREIRA: We're asking for ten new patrol officer positions. So the way it will work, is we'll divide that amongst the three shifts. MR. CHUNG: Okay. CHIEF FERREIRA: Because like I said, for us to put one officer, additional officer out in the field per shift, requires a minimum of five new positions. And then we can have three on the beat and two on back-up as days off, vacation, that nature. So having ten new positions,patrol positions in the Puna District, will mean that we'll have two additional officers per shift. MR. CHUNG: Yeah. Okay, I just wanted to—and maybe I wasn't listening when you came up earlier. CHIEF FERREIRA: No, no, it took me years to figure that out myself, I mean. MR. CHUNG: No because I kind of recall long time ago, you know, we had started what we thought would be a momentum building program, and I learned that x-amount of police officers means only a few people on at any given time. CHIEF FERREIRA: And I know it's been said before, "Oh we're giving you two officers." I said, "If you're giving me two officers positions, that's really not going to equate anybody else new on the road." Page 184 FC-8 April 17,2019 MR. CHUNG: That does not seem right. Right. CHIEF FERREIRA: I mean, it's going to help; I'm not going to deny it. You want to give me two more anywhere else, I'll take it, but— MR. utMR. CHUNG: Okay, but if—so two officers on the road at any time, for Puna. That means you got lower Puna and upper Puna, one each, yeah, actually. CHIEF FERREIRA: Well, as far as the operation within the district, I leave that to my Commanders. I'm not going to dictate to them. They know best. I'm not going to dictate to them, "Okay, you will have this, you will have that." What it would mean is, right now they're operating anywhere from seven to nine per shift per day. This will go you'll look at it more being in the area nine to eleven every shift per day. Again, because you have to take into consideration vacation, sick leave, you know, any authorized leaves of absence. MR. CHUNG: Yeah. Well, I have no doubt that this request is going to be met favorably by this body. The only question is going to be whether there's going to be a request for more. You know, I don't know. CHIEF FERREIRA: Like I said, if you ask me does this maximize us? I'm going to tell you no, because I still have districts like South Kohala. South Kohala that is operating on a minimal strength. Right now,just in the recent months in South Kohala, when there were officers that were out on industrial leave, with officers out on military leave, we actually had to pull officers from Kona to work in South Kohala. And now, that impacts two districts. MR. CHUNG: You know, we did approve the GET. There's been talk about flexibility. But it's not inconceivable that even without giving, you know, being given flexibility, we could use some of those monies for patrol officers because it's transportation related. So I think, especially with Ashley, Maile, and Matt, they'll probably be discussing this matter more with you because it—there may be a push for more officers, actually, than what you guys have requested. But in any event, even if there isn't a push, I think it starts the momentum. You know, a yearly buildup maybe towards that certain goal. CHIEF FERREIRA: Yes, because the last time we got new positions was in 2015, from the Council then. MR. CHUNG: Yeah. CHIEF FERREIRA: And it was ten positions; five went to Ka`u, oh excuse me, 2013 five went to Ka`u and five went to Puna. That was the last big increase. We had two new positions in 2015, but these were cops in schools positions that we applied for the DOJ(Department of Justice). We have looked at the DOJ to apply for additional community policing officers. But then what happens is, Page 185 FC-8 April 17,2019 because the DOJ has cut back their funding, they no longer fund 75 percent. It's pretty much going to about 40 percent, so we have to come up with the rest, and we haven't been able to up to now. So maybe if you say there's additional funds that might be available, we may be again able to go back into the DOJ and ask for more positions. MR. CHUNG: Well, you've got to talk to Deanna, too. But anyway, thank you though. I really appreciate what you guys are doing. Thank you. CHR. DAVID: Thank you, Chair Chung. Mr. Richards, go ahead. MR. RICHARDS: Thank you, Chair; and thank you, Chief. CHIEF FERREIRA: Sir. MR. RICHARDS: I think the first time the first budget conversation I asked you about new officers, and you smiled at me and said, "no." And when I asked you last year, you said, "no." I don't want to make fun of it, but I do want to make a little bit light of it. Because as our Chairman has said, the need is out there, and you guys have made do. And we talked about South Kohala, I know people have been out on industrial, I know they've been out on family leave. All good reasons, but then we have pukas in the coverage. If I'm reading this right, help me out, Deputy. I appreciate you getting back to me on the information. Last time you had any appreciable increase in your force, size, as you just mentioned, 2013. If I'm reading this right, is it 32 officers and 10 clerical. Is that what I'm ? CHIEF FERREIRA: It comes out to 42. So I believe it's 31 sworn positions and 11 support positions, yes. MR. RICHARDS: Alright. I appreciate that. And we've had this conversation before; if we strictly look at the metrics of, what did you say, 1.2 officers per thousand people, we're fine on the textbook. But the fact that we're such a huge strung-out County, that's where problem goes. So I do fully appreciate the fact then. Mr. Kaneali`i-Kleinfelder put forth an initiative for we need more police, but we know that. So I appreciate that paperwork coming forward. I appreciate the stand of"Okay, we may do, may do." 2013, is six years ago now. And so our population has continued to grow. Our community needs have increased. You know, it doesn't sit well with me, what happened 2018. You guys faced a lot of hard stuff. Even in my district, North Kohala. What's going on? I appreciate coming forth with a—and I'll use the term "bold" initiative, to make a difference and make a change, and it's going to start with your personnel because that is your resources. And I know, and we've talked about this, Page 186 FC-8 April 17,2019 North/South Kohala. Ka`u is big, North-South Kohala is big, too. If you get a call from the mountain road, it would be a half hour before they get to Waikoloa. Just the way it is because of the geography. Anyway, I appreciate this coming forth. I appreciate your update and conversation. As we go through this, I hope next year when I ask, you're going to say "yeah" instead of"no." CHIEF FERREIRA: Every year we've asked for officers. MR. RICHARDS: Yeah. CHIEF FERREIRA: We've asked, you know, supplemental budget. But you all know how the economy was, and supplemental budgets never made it to this level. That's why I was very appreciative when Mayor Kim told me, "Your hands are free. Ask for what you want." MR. RICHARDS: Yes. CHIEF FERREIRA: I said, "Okay, I'm going to ask for what we need right now, not what I want." If I ask you for what I want, we'll be here until next week explaining all the positions that I want. But I know our boundaries, what we need to—our restrictions as far as recruitment and retention. But this will help us going forward. And if it can be a momentum, great; we can move this forward. And I know what Council Chair Chung had said, back in 2013, that was the proposal. That we were going to continue to see small increases across the board, but it never happened. MR. RICHARDS: Okay, and I appreciate that. So again, I appreciate this coming forth. You've heard me ask that before, and I just want to put it out there. The central police station, Chair, this is something that deeply concerns me as far as the maintenance of that building. And so I do want to get that out that we have to talk story about it. We need to take care of it. Because again, that's a certain level of the County pride and thereby, our officers that take care of us. We've got to help take care of them. So with that, I'll yield. CHIEF FERREIRA: Can I add something to that, sir? As far as the facilities maintenance yes, the main police station is in dire need of, if I had my way replacement, but maintenance and improvements. But before that goes forward, what is more critical to us is a new 9-1-1 operation center. If any of you come into our 9-1-1 center, you'll be walking back saying, "I know exactly what the Chief is talking about." That facility right now was intended for two people. We have seven working at any given time. It's cramped. It doesn't help our retention for our Police Radio Dispatchers, nor does it help our recruitment for our Police Radio Dispatchers. Their working conditions are terrible, and I give them credit for what they do in there. But that should be on our forefront. And I know Mayor Kim has made it a point, and he's told us that we'll be going Page 187 FC-8 April 17,2019 forward with the new joint communication center. I hope it's a reality before I leave the department, at least. Thank you, sir. MR. RICHARDS: Thank you, Chief. It sounds like I'm going to come take a tour with you. I yield. CHR. DAVID: Thank you, Mr. Richards. Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. Thank you, Chief, and everyone in your department for being here. I just have so much aloha in my heart for all of you, and the hard work that everyone in your departments puts in every single day to keep our communities, our children, our families, safe. You know, I had the opportunity to meet with Captain Brisky and the team at the Pahoa Station, and I do stay in close touch with the community police officers because they're boots on the ground, and they let me know what's going on. And when they do that, then I know what kind of resources that need to be advocated for. Thank you for being honest about what your department needs. Oftentimes people just want to say, "Oh no, we're going to just make do. It's okay." But I don't like hearing that because it puts a lot of strain on your current workforce, and then we open ourselves up to potential liability as a County. So, thank you. I think the 10 additional officers for Puna needed to happen a long time ago but thank you for making that a priority. And I also want to mahalo my fellow Puna Council Member, Mr. Kaneali`i-Kleinfelder, for introducing that resolution to encourage more officers for the district. It may not seem like a lot, but I think having increased presence does help to deter crime, and we needed important conversations and hear from the community themselves about the critical need for that. You know, having said that, what other resources or tools do your officers need, beyond just additional officers on the road? What other resources do you need to do your jobs well? CHIEF FERREIRA: Right now, like I said, in our budget right now we have the monies in for our Body Worn Camera Project, that we're going forward. We also have monies in there asking for our—you know, improving our infrastructure on our computer side. We have recently acquired 10 new blue and white vehicles that we should be deploying here shortly. Those are only 10 vehicles, that we probably will be asking, looking at our budget, can we squeeze in a couple more for our officers out in the field to utilize out in the field whenever they're transporting prisoners that need to be behind the cage. MS. KIERKIEWICZ: Okay. And I know that we simply can't arrest our way out of the problem. After hearing the stats that Prosecuting Attorney Mitch Roth Page 188 FC-8 April 17,2019 shared with us this morning, about how we are over capacity at the jail, what more can we be doing to get to the root causes of crime? CHIEF FERREIRA: Actually, a lot of it is education; you know, getting the education out there. Right now Hawai`i County has a serious crystal meth problem that has to be addressed. We addressed it constantly through our officers and we also use Federal agencies to assist us with it. I know back in, some 10 years ago, it seemed like the meth problem went away because you stop seeing all these advertisements on the air, you stop seeing the TV spot saying that meth is bad. Well, culture shock, it never went away. It's always been here; it's never left. We need to continue to address that. MS. KIERKIEWICZ: So what exactly? What more can we be doing as a Council? CHIEF FERREIRA: It's just our officers, and we need the community's help when they see something, say something, Not just, "Oh, that's not my kuleana or it's not my responsibility." MS. KIERKIEWICZ: Yeah, and I wonder what other things we can do to deter people from starting to use meth in the first place. It comes down to lack of educational or economic opportunities if it's because they have a lot of time on their hands or don't feel like there's any way out with their lives. CHIEF FERREIRA: I think if you could solve that one, that would be the silver bullet. MS. KIERKIEWICZ: Okay. We are working on it. You know, I was going through the larger department operating budget book, and I noticed that the amount of hours your staff has allocated for training has gone down significantly. So the actuals in 2017-2018 were 50,000 training hours, and then this current fiscal year it's about 7,000, and then the proposed fiscal year is 7,000. Can you elaborate on that, what those trainings are? Because I get a little bit concerned about making sure that our officers have all the kind of training, they need to be effective out in the field. And specifically, this has to do with behavioral health issues. I think there are a lot of people out there that need help, that are struggling mentally. You know, it's not a crime to have a behavioral health issue. So I just want to make officers have the training they need to be able to interact with these individuals with sensitivity so that they're not triggering any type of behavior that can then turn violent. CHIEF FERREIRA: The training hours that you're seeing, if you're looking at the program objectives ? Page 189 FC-8 April 17,2019 MS. KIERKIEWICZ: Yes. CHIEF FERREIRA: Okay, we've adjusted our program measures beyond what was listed before. I think before we were just going with a status-quo amount of hours. And not only looking at hours outside of our recruit class, outside of our in-service training that we were incorporating there, realizing that every year we come in with a lot higher number than what's listed in our budget. So for this next fiscal year, I think we increased it to 25,000 hours. That includes all of our training. That includes our training in our recruit classes. That includes our training in-service training that is conducted on a weekly basis, depending on what it is. We have training involving mental health issues. We have training involving crisis intervention. That is an ongoing training. That is not a one-time deal. We constantly look at opportunities that we can get away with. Having trainers come here. Having joint trainings with the other agencies across the state. Right now a lot of our trainings, because of the size of Hawaii Island, we do our training remotely via our network. So, the training is ongoing. You'll see, like for right now, I think it's up to 7,000 hours currently for this year. It will continue to increase, depending on what the trainings that are coming out. Our biggest challenges with training, again, is the size of Hawaii Island. Getting all the officers across the island in one place to do the training in one place to do the training, or one area to do the training. So that's it's invaluable that our computer infrastructure is there so they can do it remotely, they can do it while they're on the road, they can do from their mobile data terminals. MS. KIERKIEWICZ: Okay, what does your leadership training look like, when an officer is promoted to sergeant? How do we prepare individuals to step into these leadership roles? CHIEF FERREIRA: We do what they call a Goal Shield Training, and they go over naturally with, you know, supervisory courses, what ethics training you need—excuse me—going over what the timesheet, what a contract reads. It's a week-long training that we conduct whenever we have large promotions. And we also do training inside the of the agency. When an officer goes to Puna, he's promoted to sergeant. He's a Patrol Sergeant in the Puna District. They have to go through training within the district to learn what the district is all about; what they need to know out there. MS. KIERKIEWICZ: Okay, that's great. I just have a couple more questions. What is your department doing to have an increased presence in the schools, in the sense that, you know, we have programs or resources in place for them to see officers as friends? Or what are we doing to potentially cut down on the juvenile crime rate? CHIEF FERREIRA: We do have School Resource Officers across the island. The latest, I believe, we got was in 2015, and that was an additional School Page 190 FC-8 April 17,2019 Resource Officer in Kea`au, and one in South Kohala. Prior to that, we had one in Pahoa, one in Ka`u. Hilo has two. Waiakea, Hilo Intermediate, Konawaena, Kealakehe, South Kohala has, the Middle School in Honoka`a has one School Resource Officer. We're committed to that program of leaving the officers in the schools. And the way we increased it, well, if you're as old as I am, you go back where we used to have a HI-Pal Program (Hawai`i Police Athletics League), and we had two officers committed to the HI-Pal Program. They would take care of the program across the island. Well, a lot of the smaller communities were lacking in services, in the smaller schools. So what we did, and I don't take credit for this, it was under Chief Kubojiri, what he did was we pushed out those two positions into the field and then we told our School Resource Officers, "Now, you are responsible for taking this program to the schools." And they were doing it anyway. In North Kohala, the School Resource Officer, the Community Policing Officer was going out to the school, teaching the kids, teaching them intramurals. Same thing was happening in Ka`u because they knew that their program or the HI-Pal program wasn't out there. So under Chief Kubojiri, that was moved out to our School Resource Officers. That's how we're reaching out. And we continuously participate in any fairs, community fairs, school resource fairs; if we have Career Day, then we'll proceed to there. We opened up our department for visitation tours that we constantly hold during the school year. MS. KIERKIEWICZ: Thank you so much for elaborating and sharing with the Council and the community on that. The last question I have had to do with communications, and I wonder if we had sufficient infrastructure in the fields, specifically I'm thinking about Puna and how oftentimes reception is very spotty. I just want to make sure that the correct—like radio towers or infrastructure is in place so that your officers are able to communicate with each other. CHIEF FERREIRA: Yeah, there is a County program right now in place, and it's under—it used to be under Civil Defense. I believe there's John Drummond in there that now is heading program, and that is to boost the radio towers across this island. We're hoping that HELCO will put their tower back up in the Pohoiki area so we can get communication reestablished down in Kalapana, in those areas. Communications on this island has always been a challenge. From the time I was a patrolman, it was a challenge. And we didn't have cellphones back then, so it was even more of a challenge. But it's always been an issue; because of the size of this island and the geography, it's going to maintain an issue. But again, it is being addressed, as much as we can. Page 191 FC-8 April 17,2019 MS. KIERKIEWICZ: Okay, thank you. You know, I'll just—I'll leave with, it's great that we're getting more officers for Puna, but considering there's no mauka to makai connectivity, I hope that within the County, specifically within the Planning Department and that hui that's dedicated to looking at how we can make that happen, that it happens faster. That way your officers are able to get to the station in so much more—in just a quicker time than they're having to drive right now. So thank you for being here. And again, thank you to everyone in your department for serving community. Especially last year, it was a challenging one for all of us. Thank you. CHIEF FERREIRA: Thank you. Thank you for the support. MS. KIERKIEWICZ: Thank you. Thank you, I yield. CHR. DAVID: Thank you, Ms. Kierkiewicz. Mr. Kaneali`i-Kleinfelder, go ahead. MR. KANEALI`I-KLEINFELDER: Good afternoon. CHIEF FERREIRA: Sir. MR. KANEALI`I-KLEINFELDER: Sir, how we doing? CHIEF FERREIRA: Still here. MR. KANEALI`I-KLEINFELDER: Good to see you guys. I hope you're not falling asleep over there and thank you for staying all day. I appreciate it. I just want to say thank you for fulfilling that request from the community. It's really where it came from. I'm just the conduit. They kept asking before I ran. It's been a problem, and it just continued to be a problem, and I didn't realize that the problem is bigger than Puna to this. That's where I live. I didn't realize it stretched further into the other parts of the island, even to Mr. Richards' side of the island. I'm glad the "ask" came in, and that it actually made its way to the budget. That just really makes me happy. And thank you for being a part of that. I wanted to let you know and I did want to ask with the increased officers, is there a chance that we could decrease some of the overtime that we're seeing in the budget? It's a big number; it's a big amount of overtime. I know it is what it is, but at the same, can we help that all by having these extra positions? CHIEF FERREIRA: As our extra positions—as the position get filled, naturally overtime will decrease as far as overtime that is amassed because of shortages. But as in previous years, we were asked before in a Council and I always had to respond to it, is you budget"x" amount of dollars for overtime; yet your overtime Page 192 FC-8 April 17,2019 budget is always ten times what you ask for. Why don't ask for what you need? Well, in police work, you never know what you're going to need as far as overtime goes. MR. KANEALI`I-KLEINFELDER: Yeah. CHIEF FERREIRA: One natural disaster, where we have to deploy all of our officers, will kill our overtime budget. The lava flow incident in Puna coupled with the rainstorms, coupled with the killing of the officer, that killed our budget. Our overtime budget was zero, I believe, from couple months ago. We depleted it. So how much can we ask for? How much do we ask for? We always ask conservatively, and we always go way over our overtime. But it normally comes out of our own Salaries and Wages. We don't go outside of it. Naturally, if we do increase the officer positions, yes it should decrease our overtime; however again, one natural disaster, one major crime, one deployment, and we may end up hitting the mark again. MR. KANEALI`I-KLEINFELDER: I appreciate that. I have friends in the force, and I appreciate everything they do. It would be nice if we could decrease that number and get you what you need to serve the island better. If we can meet that jointly from two different sides, great. If we can work towards that, great. And I do understand what we've been through in the last I would say in the last four years, five years. We've been through a lot. Again, thank you for everything you do, and I appreciate it. I look forward to what happens July 1st CHIEF FERREIRA; Thank you for the support, sir. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Chair. Thank you, Chief, for being here. We family, so I promise it will go easy. Earlier today we heard a very long discussion with our Prosecuting Attorney's Office about the Spillman program and the spike in overtime hours that this is causing for their department. Again, because of time, if you and Mitch Roth could maybe put your folks' heads together and maybe look at some different opportunities there to not only help reduce his overtime hours or maybe create better efficiencies there, and then come back to us. Because again, we'll see another pass, another iteration, of this budget in May, so hopefully we can use that opportunity and give you guys some space to have a conversation. And then also, looking at our counterparts, especially Kauai County I understand uses the program. They, from what I understand, like the efficiencies of it. So maybe there's some tools and processes that the Kauai Police Department is Page 193 FC-8 April 17,2019 using that we aren't using here, and maybe through processes or through some training we could actually get to the same efficiencies. CHIEF FERREIRA: We have been touched with Kauai Police. And in fact, when we rolled out our system, we had members from the Kauai Police Department here assisting us with training. We've been in constant contact with the Kauai Police Department because they have the exact same system. We have a representative from Spillman. That was written into the contract. He's here on island; he's here for a year plus some to be assisting us with the rollout or the deployment. I find it interesting that I had to find out today about the issues with the Prosecutor's Office as they meet with my staff constantly on the deployment of the Spillman program. The Spillman program has not resulted in overtime cost for our department. In fact it'sI know there's some glitches to it, that nothing's perfect. When we went from the Wang to Denali system, people were yelling and telling us, "Get back to the Wang." When we went from Denali to Spillman, people are saying that we should go back the Denali system. And if you take it to your own personal experiences, when you went from a rotary phone to a, and I'm old, so I say rotary phone. MR. RICHARDS: Chief, these guys don't know that kind stuff. CHIEF FERREIRA: Okay. Well, you went from a flip-phone to an Apple. We had challenges. I still haveI have an Apple, and it's like I wish had a flip-phone again. But there's always going to be challenges. There's always going to be people that are not going to appreciate what we have. We have taken some of our patrol officers that are really good at it, and we've put them into—taken them off the road and helped get them to help us to deploy this or help to train. They're open to go into the Prosecutor's Office. I'm more than open in talking to Mitch, and I've got no problem discussing it with him and working out some of the bugs. I know his people are not keen on it, they're not happy with it. But I understand that they're also rolling out new system here shortly. And interface has to be done both ways. So yes, we will open the discussions. MS. LEE LOY: Thank you, Chief. That's exactly what I wanted to hear. Like Chair Chung, I see this as a very aggressive budget. I'll just put it out there, I will be supporting the new positions. Just plain and simple, it's more than needed. It's just absolutely necessary. However, another kind of food for thought. I understand the need for the new officers, but I have a general concern about the attrition rate and some of our officers that will be retiring. So my general concern is, it's kind of this ebb and flow, right? We push them in, but then they still end up—we're still at status quo. We're still at the same number of officers, right, because some of them Page 194 FC-8 April 17,2019 retired, everybody bumps up, and we still have open positions. So if you guys could give some thought to some of that succession planning, about—and it doesn't have to be perfect, right? Just, hey, we know people are at 20, 22, mine is at 28 years already, so they're going to be walking away really soon. You know, people hold out for the Bargaining Unit contract, what that will look like, what that would like for their high three. So just give some thought and some rational nexus, that as we move new positions in some of these officers will leave, and we still want to build up, right, the police force. CHIEF FERREIRA: Yeah, you bring up an important point. Last year, in 2018, I know we saw a large departure from the Police Department, and there was a lot of factors. When we do our exit interviews, there are a lot of factors there that made them decide that it's time to leave. Part of it is, right now we're at this position where we-25 years ago, we had large classes, we had numerous classes to catch up to fill the voids. Well now, these officers are hitting 25 years and they're eligible for retirement. And for whatever reason they decide to leave, whether it be they're not happy with my performance, they're looking for another position, they're burnt out, they're finding—some of them were, you know, "I realize that I'm missing time with my kids and now is my last opportunity,"they decided to leave. So there's a myriad of reasons. I'm hoping that with this inclusion of the 20 new officers and those other positions that this will be an incentive, "Hey, maybe we should stick around. I got more opportunity for promotions. I got new sergeants coming aboard, and new lieutenants." That may give some of the younger officers on the fence line the thought that, "Maybe I should stick around another couple of years. Maybe I should go up until 32, when I can max out on my retirement." That is always out there. Last year one of the things that happened, and I think that pushed a lot of the officers over the edge, was we had Assistant Chief Henry Tavares. Rest his soul, immediately after retiring, it didn't take two or three months, he passed away. It was an eye-opener for a lot of officers, saying, "Whoa, that can be me. That can be me. I can leave here shortly," and you know, "What's going to happen?" And I told the Police Commission over the years that right now we're in a critical point in this Police Department. Right now, everyone around the rank of Captain,which is all the command staff for this Police department, with the exception of maybe three newly promoted Captains, can leave tomorrow. They can put in their papers, myself and the deputy included. That can happen at any given point. I don't know the exact number, but the last number I know was 52 officers that were eligible for retirement at any given time. That can happen, and we're aware of that. I want to get to a point where we're 100 percent staffed. And I come before this body, or we come this body and say, "I want 20 funded training positions. Not Page 195 FC-8 April 17,2019 positions out in the field. I want these training positions funded." Because the way we work now is, to hire a trainee, I have to have a vacant equivalent out in the field. So right now, we're at 18 vacancies. So we're pushing for a class of 18. We normally try to hire at least two extra so that we know that we're going lose some in the class. I want to come to the point where we're saying, okay, we're fully-staffed, but I want a class ongoing with 20 officers that will fill the void when the end of the years come and these guys leave, or we have vacancies created that we can push these guys out there. So, it is always in our thoughts; what can we do better, how can we entice the guys to stay longer? The contract helps. The SHOPO (State of Hawaii Organization of Police Officers) helps. Some of them make more than me. It's a good thing. Which is a good thing, you know, it keeps them here. But again, it's an inherently dangerous job. And when they see what's going on out there, it makes a difference. The family, I don't blame them. I don't blame some of the wives tell their husbands, "You need to leave." So, don't tell your husband that. MS. LEE LOY: Thank you. And I think you hit it out of the park because crime 25 years ago is very different. So as a patrolman coming in, and I'm looking at your officers behind you nodding, was very different. And the tools in the toolbelt you guys got at 25 years ago is very different from the tools in the toolbelt that you guys need today. So with that being said, and Ms. Kierkiewicz touched upon this earlier, which was about leadership training once they get in. However, I have a little bit of a different optics on that and that's because I've watched so many people apply, get into the recruit class, and realize it's a tough job. And so you start with 18 or 20 recruits and only graduate six. So again food for thought, if there is a way either to get into the schools a little bit earlier or maybe even do career training or cadet training, so that some of these individuals who might not know what they want to be when they grow up or are in their early 20s trying to figure out what they want to do, that they might get a little sampling of what an officer's work is like. Because oftentimes it's more than just driving around and giving speeding ticket. Because there's so many other opportunities within the department, where yes, the first step is getting in and driving around and giving a speeding ticket. Well, we also know that there's work with the kids, right, there's community policing officers. There's just so much more that they could do. So, if you could give that some of that some thought. CHIEF FERREIRA: And we do participate in as many career fairs as we can. We go into the schools; we do the talks. And yes, we do lose a lot of recruits when we do the hires, and part of is the workforce that is out there right now, they're not career-minded. It's more what's going on right now at this point. So we do have a lot of hires that decide, "Okay, this is not for me." And if you look at, like you say 25 years ago, the hats the officers have to wear now, the beat officers have to wear now, are ten times what I had to wear. They Page 196 FC-8 April 17,2019 have to be a counselor. They have to be a medic. They have to be psychologist. They have to be a clergyman. There are so many issues out there now that we never had to deal with. And that's why when I talk to parents, I said, "You have to talk to your children. What your children are going, what your kids are going through is nothing compared to what we go through." On a funny part of that, is you should listen to some of the calls we get into our Dispatch Center, some of the calls for assistance. A mother asking us for a police officer to come to her home because she took the phone away from her ten-year old son, and he's throwing a tantrum and she cannot handle it. And it's like but we send an officer. We send an officer then to be the good guy, to talk to them. But in your mind, you're thinking if you cannot handle them at 10, God forbid, what's going to happen when they're 16? But those are the kind of calls we go through, but those are the kind of things that our officers need to do. There's a lot of challenges out there that they have to face. I don't mean to make light of it, but it does happen. That is the reality of it. And when they do come into the Police Department and when they hit the road, they are faced with a lot of challenges, and they are faced with things that, you know, they never thought was there. We do a realistic job interview with our dispatchers, where we actually can take our dispatchers, individuals that are applying for dispatch, and bring them into our Dispatch Center and let them sit there and listen to what's going on. You know how much we lose because of that? But it's realistic. we show them what is going to be expected of them. I wish we could do that for police officers, but there's a lot going on with Police. Our officers go through to ten months of training, little over six and a half months of academics, and a little over three and half months of on-the-job training or field training. So it takes us almost ten months to train an officer ready to be solo, and they need that. They need to be trained that way. But yes, we do look at every chance—we take every opportunity we can to get the word out. MS. LEE LOY: Thank you, Chief, for everything you folks have done. This year has been incredibly emotional for your department. Thank you. Thank you everyone for being here. Chair, I yield. CHR. DAVID: Thank you, Ms. Lee Loy. Chair Chung, go ahead. MR. CHUNG: Yeah, this is going to be really quick. Less than a minute, I think, because we have a lot of questions for Corp. Counsel and Liquor. CHIEF FERREIRA: Oh, yeah. Attack Liquor,please. MR. CHUNG: Right, right. Page 197 FC-8 April 17,2019 CHIEF FERREIRA: Hi, Gerald. MR. CHUNG: But this kind of relates to what was asked and what was discussed. All I ask from you are one of two answers; it should be okay, or it might be a problem. We never thought about this. But when you get 20 new positions, will we be able to recruit 20 new quality police officers in addition to what we normally would be? CHIEF FERREIRA: Give me 30 and let me try and answer that. MR. CHUNG: Okay, 30. How's that? CHIEF FERREIRA: No, we're going to do everything in our power to get those positions filled. MR. CHUNG: Okay. CHIEF FERREIRA: Right now we have a recruitment that is ongoing. We have 72 applicants to fill the 20 positions that we will have by April—May 1st. If this budget goes through, we're already talking to County HR (Human Resources) of doing another recruitment here very shortly, to get another pool going; and if it needs be, we'll do another recruitment after that. MR. CHUNG: Okay. CHIEF FERREIRA: We'll do what it takes to get those positions filled as fast as we can. MR. CHUNG: Alright. Not a problem then? CHIEF FERREIRA: No. MR. CHUNG: Good. CHR. DAVID: Thank you, Chair Chung. Mr. Richards. MR. RICHARDS: Yeah,just another follow-up, quick question. You said you want to come and ask us for 20 funded recruiting positions. What's the number? If you had to put a number out for budget, what's the number? CHIEF FERREIRA: Off the top of my head? MR. RICHARDS: Yep. CHIEF FERREIRA: I couldn't even venture to think what 20 positions would cost. Page 198 FC-8 April 17,2019 MR. RICHARDS: If you want to get back to me, that's fine too. But as we are thinking about retooling, let's know all the numbers. That's why I like about how Chair Chung has asked that we get the supplemental budgets. Let us know. CHIEF FERREIRA: Okay, right now if you're looking at the 20 new patrol positions, the police officer two positions that will eventually happen, right now they're running around $800,000 per ten, so it would be somewhere in that range. MR. RICHARDS: Okay, and that's for the recruit class? CHIEF FERREIRA: Yeah. I mean, it would be somewhere in that range, so you'll be looking, give or take, $100,000. MR. RICHARDS: $80,000 a recruit. Okay, thank you. I yield. CHR. DAVID: Thank you, Mr. Richards. Ms. Villegas, go ahead. MS. VILLEGAS: My apologies for keeping you up here. CHIEF FERREIRA: No, not a problem. MS. VILLEGAS: I just had a question. I represent District 7, and as the island as a whole has seen a huge increase in the population of homeless, houeless, and chronic homeless people, I'm constantly being asked by constituents, what can we do, how can we do it? How can we support you as a Police Department? Because I got numerous reasons, and sometimes people's frustrations are only more frustrating because they don't see the whole picture, but I would like to know how I can support you guys in facilitating the help with those issues as well as understanding, kind of what your strategies are in that capacity. CHIEF FERREIRA: You know what's interesting, homelessness is an issue that goes across the nation. MS. VILLEGAS: Yeah. CHIEF FERREIRA: We're not unique. What we are unique to here in Hawaii Island is a lack of services. So you asked me what the community can do, what the Council can do as a whole, as a legislative body. We need to have the other legislative bodies like the State take some homeless on Hawaii Island. We need to have the mental health resources that we can refer our officers to. Now, I know it was brought up before about a critical incident team. That is where have an officer that is assisted by a psychologist—by a mental health professional that can go out in the field and attack all of this. Right now, we have the officer component, but we don't have anything else. We don't have anywhere else to take them. So as far as what you can do as a legislative body, is what the community can do; is we need to get the word out to our State leaders, Page 199 FC-8 April 17,2019 our legislative State leaders, our Congressional leaders, and let them know this is what we're lacking on Hawaii Island. It cannot be Oahu-centric. You have to bring it to the neighbor islands. I'm very proud to say that right now the Federal presence, law enforcement presence across the State, is reaching out to the neighbor islands. They're taking it away from Oahu-centric, so they're reaching out to our officers. They're reaching out to our departments and other neighbor islands. Same thing has to happen with the services. That is what is lacking. Homelessness is not a crime. Having somebody sit on the sidewalk, yeah, it's a nuisance, yes it may hurt your business, but it's not a crime. We need to find a solution. The solution is we need to get them help, and a lot of time it is either mental help or drug abuse help. We need to get the help, and that is where the resources are lacking. And we are trying to get through programs. I know through the County, through the social services, there's a LEAD program, Law Enforcement Adult Diversion program, that we're participating in, but that is a small portion. And again, without the mental health resources, that is going to fail without the back end of it. I hope I answered your question. MS. VILLEGAS: You did, thank you very much. I appreciate all that you guys do. It's a challenging population to serve because they are also constituents in their own capacity. So, thank you for your service. CHIEF FERREIRA: Thank you. CHR. DAVID: Ms. Villegas. Mr. Kaneali`i-Kleinfelder, go ahead. MR. KANEALI`I-KLEINFELDER: Council Woman Kierkiewicz touched on a training, and I bounced it around. We have a very vocal group of people to want to know that we're trained properly, and our police force is trained properly. At a County level and a responsibility level, I do think it's a necessity for us to get any kind of training that helps all of officers deal with people who have a mental disability or who aren't quite all there or on drugs. And on the back end of that, get the help they need after that to deal with situations that they may not have wanted to encounter. But I did go online a little bit and poked around, and there's a lot of grants that are available. I think one is actually called COPS (Community Oriented Policing Services). There are some Federal grants that are available. We've been touching in grants a lot here, and I think there's a push to get more grant funding because it's alleviation from what we need to provide, and it gets programs that we need, and it gets the finances to cover those programs. Page 200 FC-8 April 17,2019 Just from the vocalness of the community, whether it's just Puna or not I don't know, but it is a very vocal group, and they just want to know that we're trained. I think it's actually in our best interest to get that training for a lot of different reasons. So please think about that. I know you may be doing it already, but just—my gut is telling me we need to kind of be ahead of that. CHIEF FERREIRA: It's always good to be reminded that we need more training. Rest assured, this body can be rest assured that we do our due diligence: looking at grants, looking at ways that we can improve our training for our officers. We're more aware of the needs than anyone else in the community. That we know we need to have training on this. We need to arm our officers as best as we can so that when they meet this individual, they have the tools. Not only on their belt, but also in their mind; and then their training, that they know, "I know how to deal with this. This is not a person that is on drugs, but this is a person that may need some other mental assistance or mental health assistance." So yes, it's not a bad thing to remind us. We always need reminders telling us, "Okay, this is what we need to do." And rest assured, we are looking at it. We always do look at the Department of Justice grants, like you said, the COPS grants. We also have grants through the Department of Attorney General, through the State. They provide us training grants and funding. We wouldn't be able to do any of these trainings with the funding that we have,just from the County level. So again, we do constantly reach out. Like I said earlier though, our biggest challenge is getting everyone trained on the same page at the same time, because of the size of the Hawaii Island. You know, I always make a joke that people don't realize how big this island is, but you can fit the rest of the State in this island, and you still would have room to build the rail. So, this is a large island. MR. KANEALI`I-KLEINFELDER: I agree. I think someone brought up "train the trainer programs." Anything that you could use to make sure that we're protected and safe on multiple levels, and that on the backend if something does happen, that officer has someone to talk to about what happened, as well. Thank you. CHIEF FERREIRA: Thank you, sir. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. And I believe everyone has spoken. Done? Now it's my turn. Chief, I want to thank you for, number one, your patience for you and everyone's patience waiting to come before us. The rest of my colleagues have asked most of the questions. But do want to just highlight the fact that I totally appreciate the ten officers in Puna and in Ka`u because we overlap that way, and as long as I—when I first started here, that was the request from Ka`u. I didn't realize how many bodies it takes just to get, you know, a couple policemen to come to a district. And I've transferred that message to people that are going, "What's the big deal?" We only need two Page 201 FC-8 April 17,2019 police officers," and you go, "Yeah, but that translates to ten." So anyway, really, thank you for that. And thank you also for mentioning the services. Mr. Kaneali`i-Kleinfelder brought up a really serious situation with our homeless and our drugs. We've been going through the nonprofit grant process, and you're absolutely correct, because these nonprofit organizations are giving and providing the services that you referred to. And I really feel it's government's responsibility to have institutions or facilities so that our community organizations don't have to hold the brunt of it. So thank you for saying that because that's another side of the issue that people really fail to see sometimes and that's why it makes this problem a difficult one. You folks are doing a great job. My aloha goes out to you and your department for your losses and your experiences this year. So, thank you very much. CHIEF FERREIRA: Thank you for all the support from the Council Members. And the credit of doing a good job goes to the command staff and the people that are out in the field. CHR. DAVID: Yes. CHIEF FERREIRA: We don't want to take the credit because they're the ones that actually do the work. CHR. DAVID: And actually, that goes ditto for us, too. CHIEF FERREIRA: Thank you very much. And the door is open to any one of you. You know, reach out to us, reach out to my commanders any time you have questions. CHR. DAVID: Thank you. Mahalo everybody for coming. CHIEF FERREIRA: Thank you very much. CHR. DAVID: Council Members, do we need a break, or we can just go couple minutes? Perfect. I'm going to take this into recess. Two minutes. Recess: At 4:19 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 4:25 p.m. CHR. DAVID: Aloha, Council Members. I'm taking the Special Committee on Finance out of Recess. I want to welcome Corp. Counsel Joe Kamelamela and Rene Schoen. Page 202 FC-8 April 17,2019 (6) Office of the Corporation Counsel: (Note: At this time, Corporation Counsel Joseph Kamelamela and Assistant Corporation Council Renee Schoen came forward to address the members of the Committee.) MR. KAMELAMELA: Aloha. Good afternoon. Anyway thank you, Chair, and members of the County Council. So I wanted to introduce the better half of myself, Renee Schoen, she's our Assistant Corporation Counsel. I also wanted to introduce in the back there, our Litigation Supervisor, Laureen Martin, who's been with us quite a long time now. And then one of our most important persons in my office is Joyce Unoki, who's our Accounting/HR. Some of the other staff members couldn't be here because of certain reasons. But I wanted to recognize my Private Secretary, Cathy Ferreira, who works diligently and hard. I also have a Counseling and Drafting (C&D) Supervisor, Craig Masuda, who has helped strengthen the C&D Section, somewhat like what Ms. Martin has done with the Litigation Unit. I'll also recognize our Supervising Legal Technician, Emarie Carvalho, who actually serves like a Business Manager almost like for our office; and our Legal Technician, too, Jennifer Kualii, who does a great job supervising our clerks. So what do we do? So we're the chief legal advisor and legal representative of all County agencies, the Council, all offices and employees, in matters related to their official powers and duties; and we represent the County and its employees in all civil proceedings. So what does that mean? Well, for me it means this: we would do whatever is needed to protect, preserve and (inaudible)the interests of the County, because we all recognize that we have different departments who serve different rights, duties, and responsibilities. But sometimes there's admission to be made and we will make sure that we do it to the best of our ability and legally. How many employees do we have? We have 27 employees right now. We have 31 positions in the budget. We have 12 staff and 15 attorneys. Eight of our attorneys are in the Counseling and Drafting Section (C&D), and the average years of experience is over 10 years, so we are fortunate to have people who's been practicing for a long time there. We also have six attorneys in litigation, and the average years of experience there is over 15 years. We have four unfunded vacancies. One of the vacancies have return rights, so we're waiting for the person to come back but that person is in another department right now. I wanted share with each of you some of the highlights that have occurred, because this information you don't really have, but it's from July 1, 2018 to today. For the C&D Section, we have provided training to 465 County employees, Board and Commission members, and part of it was also helping, like HR, with Page 203 FC-8 April 17,2019 training the supervisors with different kind of issues that pop up there. And also with the Police, we help out on doing the recruits and the Gold Shield. With the Police, I have a part in my heart for them because I used to be a Prosecutor. I worked with the police very closely. One of the things I enjoy when I train the police is to share our experience when it comes to defending the police officers on use of force cases, so I love doing that with the police. We have been providing legal services and advice to 37 boards and commissions, totaling about 250 members. There are four inactive boards and commissions, but one of which is the Redistricting Commission that's coming up and will be active in 2020, so that's something to look forward to. We have reviewed and approved 1,236 legal documents, provided 321 legal opinions, 867 documents reviewed and commented and upon, and 195 long-term projects completed. There still are a lot more long-term projects. The C&D attorneys had made over 1,172 appearances and meetings already. They have also worked with departments on lava response and recovery. They had drafted and finalized tax deeds, and they had advised, drafting, finalizing, and (inaudible) some rules that needed to be changed. For example, like the Salary Commission that had to be changed because of the ballot issue that went before the people. There were some necessary changes that needed to be made. One of the more significant one was the Charter requirement. Now, essentially a proposed salary increase or decrease is 10 percent or more. There's a two-third of the majority that's required to approve. So that's an important change. We also had revised the Planning rules because of the short-term rental law that just got passed. For litigation, we had 132 litigation cases closed due to settlements, and dismissal or judgements in favor of the County. There were three important cases that I wanted to highlight. One is the Santiago jury trial in September of 2018, where the jury had determined that the force used by the police office was reasonable; and thus, the County had no fault. But in this case, the plaintiffs paid the County $10,000 at least, for some of the fees and costs that we had to shoulder in that one. Prior to last year's election, we had worked closely with all of the other counties, where we had (inaudible) against the State on the ballot issue, regarding whether the State can assess a surcharge on real property taxes for education. And the answer to that, that was a resounding no. And just this month we got a favorable final judgment from a decision of a cap award in a slip and fall case, where the plaintiff was found 60 percent at fault, which basically means we don't pay anything. The litigators have also increased the amount of collections from last year. Last year, they got$127,972. That was for all fiscal year, last year, for the Solid Page 204 FC-8 April 17,2019 Waste, Wastewater, and other claims. So this year we're up to $177,415.95. The litigators appeared in court hearings our arbitrations included 329 times. What is our budget? Our budget is just a slight increase from last year's budget due to salary increases, and these salary increases basically was for the Civil Service. Seventy-nine of our budget is for Salary and Wages. Last year, it was 78 percent. The remainder is what is necessary to run our law office. And we had submitted a status-quo budget. Thank you for approving our past budgets before. I really don't have anything else to say. Any questions? I'm here to answer. CHR. DAVID: Thank you, Mr. Kamelamela. Ms. Schoen, would you like to say a few words? Alright, thank you. Council Members, questions for Corporation Counsel? Ms. Villegas, go ahead. MS. VILLEGAS: Sure. Hi, thank you for being here. I just have a quick question. I have been for all of the different departments looking at the supplemental requests and kind of adding them in to what the other spreadsheet that we have says. According to the supplemental requests, those would have been an increase. They're asking for another $271,523, which transitions, which when added to the other variance, it takes the increase much more significantly. So I just wondered in those supplemental increases, are those just how does that affect things overall? Just because I'm trying to get a more succinct idea of (inaudible). MR. KAMELAMELA: Okay, thanks for asking that question. Because there's actually two supplemental requests that are asked. The first one is in November. That's kind of like a wish list, I mean, that's what it is. I mean, I wish I could have more training. I wish I could have another deputy, you know. But sometime the County don't have money so then we try to work with what we have. And then there's the second one. There is that—and these are costs that wasn't anticipated until around April 8, that we started to realize that it really costs more money to do the interest arbitrations. And then we were informed that the HGEA (Hawai`i Government Employees Association) was going to do separately, so now we had to deal with five instead of one or two, so those things add up. But what I decided to do, because I don't know how much revenue we get, I am just going try to work with Deanna on it. That's all. MS. VILLEGAS: Okay, great. What I'm seeing here,just because I want to make sure that I'm looking correctly, is there's actually eight asks that includes things: travel and conferences, the law clerk, a laptop, miscellaneous contract services for expert witness fees, a desktop PC, heavy-duty shredder, and a deputy. So I just wondered that's what you're that's still all in that capacity, correct? Page 205 FC-8 April 17,2019 MR. KAMELAMELA: No. Well, that's a wish list. MS. VILLEGAS: A wish list, okay MR. KAMELAMELA: And then I don't know whether there's money because I have no idea what the revenue is like. MS. VILLEGAS: None of us do. MR. KAMELAMELA: But even if we cut, like the law clerk program, we still have law clerks. MS. VILLEGAS: Okay. MR. KAMELAMELA: Okay, but we cannot have more. But I'm like Council Member Kierkiewicz. It is important to give aspiring lawyers the opportunity to work with somebody, somewhere. Because when I was in law school, I interned with the Attorney General's Office at the UH-Manoa, and it was experience that inspired me to be one lawyer. I don't know what kind of lawyer I was going to be, but all I saw was "My goodness, this is fun." So I want to make sure that we have at least some money for one law clerk. MS. VILLEGAS: Great. Thank you, Mr. Kamelamela. And in my experience, you're a fantastic lawyer, so thank you for dedicating your skillset to the County of Hawaii and working with us. MR. KAMELAMELA: Well, I actually thank my staff for working with me. But they're a great staff. I work with them every day. MS. VILLEGAS: Thank you. MS. SCHOEN: If I may, Madam Chair? CHR. DAVID: Please, go ahead. MS. SCHOEN: I guess you know, in further answer to your question, I would look at our supplemental requests dated April 8h, in terms of priority anyway. We are asking for the additional amount for the five interest arbitrations, in the amount of$140,000, and then also, as Joe said, there are travel expenses that go along with that. That's the second priority on that supplemental budget request. And then going over to the one submitted in November, you can see there's a travel and conference request. You know, we are always you know, we do take advantage of training that's offered through the web, through free training that's offered to the Hawaii State Bar Association, but there are opportunities on the Page 206 FC-8 April 17,2019 mainland and on Oahu that we would like to take advantage of and send our attorneys and also our Civil Service staff. With respect to the law clerk, in the prior years we've had two law clerks. I think last year we cut it down to one, so this ask is to bring it up to two law clerks. The laptop, desktop, we still need those things. The one thing that we've already purchased would be that shredder onI think it's on the second page. MS. VILLEGAS: So just to confirm, because I want to make sure that I have these correctly, your first choice would be the miscellaneous contract services with the expert witness at a $140,000? Okay, great. And then, I'm sorry, I missed the second one. MS. SCHOEN: It's number two on that sheet, which would be the travel local litigation. MS. VILLEGAS: Okay, atthe $10,000. MS. SCHOEN: That's also related to the interest arbitration. MS. VILLEGAS: Got it. Great. Thank you. That's very helpful. I yield. CHR. DAVID: Thank you, Ms. Villegas, and thank you, Ms. Schoen. Anyone else? MS. EOFF: Just a clarification. CHR. DAVID: Go ahead, Ms. Eoff. MS. EOFF: So when we look at all of these supplemental requests, there was last year, a submission and then a more current submission. So for most of the departments, I guess we're just looking at their more current supplemental request. Because like Jules said, it kind of annihilates. If they get docked then they don't need from the previous request, right? Like you said, look at the April 8'h submission, is what you really need as your priority. MS. SCHOEN: For our department, yes. CHR. DAVID: Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: I don't have a question. I just wanted to say thank you. You know, typically, Joe, I see you here, and you're giving very somber legal advice. It was so wonderful to see you so passionate and animated talking about your department and all the really incredible individuals at Corporation Counsel. I've had the pleasure to meet with Renee on a number of occasions as well Ron Kim to talk about potential changes and updates to the code. So I just want to Page 207 FC-8 April 17,2019 mahalo you. I know that the creative thinking that I'm bringing to the table is really giving you, Joe, a run for your money. So I just want to mahalo you. MR. KAMELAMELA: I love that, by the way. MS. KIERKIEWICZ: Thank you for all of your work. I yield, Madam Chair. CHR. DAVID: Thank you. Thank you, Ms. Kierkiewicz. Anyone else for Corp. Counsel? Seeing none, Mr. Kamelamela and Ms. Schoen, thank you very much for coming. I really appreciate all the help that you've been giving us individually and as a body. I really appreciate that. And you're always quick to respond. Thank you, Joyce. What are you doing in the back? Anyway, thanks for coming. We're going to take Liquor, right, next. Aloha. MR. KAMELAMELA: Mahalo again. CHR. DAVID: Thank you. (7) Liquor Control: (Note: At this time, Liquor Control Director Gerald Takase came forward to address the members of the Committee.) MR. TAKASE: Good afternoon, Council Members. Gerald Takase, Director for the Department of Liquor Control. CHR. DAVID: Good afternoon. MR. TAKASE: I have with me our Administrator Officer, Brandon Gonzales; and also my Administrative Services Officer, Marsha Matsui, and I wanted to recognize her for you guys because I know you guys have lots of contingency fund requests. She's the one that actually has to do all the paperwork to get them through, so we thank her for making us look and making you guys look good. In terms of our budget, we are setting forth a status-quo budget. I don't believe we have any supplemental budget, as well. You know, as you folks I think are well aware, we are a self-funded agency. I will have to say that gross liquor sales have been increasing about 10 percent, so maybe it's a good indicator for future—the County's economy. We have offices in Hilo and Kona. We have 18 personnel currently. I think we just came before you to add two half-time positions in Kona. Some of the highlights from this year, we have made strides in our IT (Information Technology). We've created online applications with direct wine shippers, and we're going to do online renewals starting next month. It started slowly, but it seems to be catching on. We're probably increasing our numbers Page 208 FC-8 April 17,2019 every month, so that's something that's good for both us and our licensees as it will make it easier for them to do business with us. In addition to enforcement, we've worked hard on our business development in the last couple of years. I think it will start to pay dividends. We have several new manufacturers: Kuleana Rum, Big Island Distillery. Ola Brewery have come into business in the last year. Kona Brewery, I think for the Kona people know that they're dramatically increasing their presence. They're building a new brewery and upgrading their current one, and we welcome that. We have spent a lot of time trying to develop and help these businesses get running. And so it will, I think, add to the County's tax base, as well. We are also helping a couple of projects in restorations. Luquin's in Pahoa suffered a fire a couple of years ago, and now they're, I think,just coming out of it now. They did open a new facility, and we're working with them to reopen their old restaurant site, as well. And then just recently, the Hub Pub in Kohala suffered a fire, but we're helping them relocate to the Kawaihae area to get back on track. In terms of community involvement, we continue with the Project Grad functions for the schools. I know the Council Members have all kind of stepped up and have also helped the schools. I think that is still a good program for them. Hopefully, it makes an impact on them. We have another project, Brave Hawaii, which we're doing in conjunction with Augie T. He is going out to the schools with his daughter. I think it was Mahealani Sims-Tulba. She was a former Ms. Teen USA or something. But she has developed a program, where she's trying to work on kind of an anti-bullying, anti-drug, anti-liquor campaign, directed mostly with intermediate school children. We are in our second year of that with him. Hopefully, I think it's having some impact on the children. That's about it, I guess. So subject to any of your questions. CHR. DAVID: Thank you, Mr. Takase. Any questions, Council Members? No? Oh, go ahead. Go ahead, Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. Gerald, I appreciate you and your staff, especially all the work that you do to help support us with routing our CRF (Contingency Relief Fund) requests. The question that I have, in taking a look at the budget, there was a cut in the public programs part of your budget by $10,000, and so I was just wondering if you could elaborate on that. And the reason being, when we had met you had told me about the Brave program, but the potential for other programs in partnership with teachers and students. Page 209 FC-8 April 18,2019 MR. TAKASE: Yeah, we still have money left over in the Brave program. It's running into its second year. I think the primary cut from that was really out of the Project Grad money, since the Council Members have started to fund them, as well. We've received, I guess, significantly less requests for it, so we're just kind of reducing it to match whatI think we have four—maybe only four requests so far this year. I think we'll probably make a—send an email out to the schools to just remind them. I think they've gotten money from their Council people, so that's kind of taken over. So, that's really the primary reduction. MS. KIERKIEWICZ: Okay, that's helpful to know. So there's still money available under the special projects line item. MR. TAKASE: Yes. MS. KIERKIEWICZ: I think there's $30,000 there to start working on other projects in the schools. MR. TAKASE: Yes. MS. KIERKIEWICZ: Okay, great. Thanks for the clarification. I yield. CHR. DAVID: Thank you, Ms. Kierkiewicz. Anyone else? No?. Well, Chair Chung was very accurate, that was quick. Mr. Takase, thank you so much for coming, and your staff. MR. TAKASE: Okay, thank you. CHR. DAVID: And have a great day. Council Members, we're in recess until tomorrow at 9:00 a.m. Mahalo. RECESS: At 4:50 p.m., the Chair called for a recess, until April 18, 2019, at 9:00 a.m. RECONVENE: The Special Meeting of the Committee on Finance was reconvened in the Council Chambers, Hilo, at 9:04 a.m., Thursday, April 18, 2019, by Ms. Maile Medeiros David, Chair Page 210 FC-8 April 18,2019 ROLL CALL: Present: Ms. Maile Medeiros David, Chair Ms. Karen Eoff, Vice Chair Mr. Aaron S. Y. Chung, Member Mr. Matt Mr. Kaneali`i-Kleinfelder, Member Ms. Ashley Kierkiewicz, Member Ms. Susan L. K. Lee Loy, Member Ms. Valerie T. Poindexter, Member Mr. Herbert M. "Tim" Richards, III, Member Ms. Rebecca Villegas, 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 speak to comment on Bill 30 and Bill 31, and came forward when called by the Chair: Abelghassem Abraham Sadegh. Sandra Demoruelle. Jerry Warren. Stephen Butcha. Susie Bond. CHR. DAVID: I believe that concludes our public testimony period, so I am closing public testimony at this time. DEPARTMENTAL The Chair directed the Committee to proceed to the next item on the agenda, BUDGET AND Departmental Budget and Program Reviews. PROGRAM REVIEWS: (1) Civil Defense Agency CHR. DAVID: I would like to call up Civil Defense Administrator Talmadge Magno to please take the seat, and you may ask your staff to come with you. Identify yourself for record,please, and introduce your staff. Thank you. (Note: At this time, Civil Defense Administrator Talmadge Magno came forward to address the members of the Committee.) Page 211 FC-8 April 18,2019 MR. MAGNO: Good morning. CHR. DAVID: Good morning. MR. MAGNO: Civil Administrator Talmadge Magno. I have Kelsie Kalua, Civil Defense accountant. Also with me, Administrator Officer Barry Periatt, who is assigned to logistics and finance; and then John Drummond, who used to be an Administrative Officer and now is the County Radio Manager. CHR. DAVID: Alright. Welcome. Go ahead. Thank you. MR. MAGNO: I'm aware of—everybody's gotten our packet as far as our expenses. I've met with a few of you over the course of the last few weeks. You know, our department is small, pretty much skilled positions, but with the Hawaii Law 127 Alpha, during emergencies we swell to the point where we can use all County and State emergencies—it would be State employees as our resource. You know, times like now when there's no major incident going on, we're catching with everything that we missed in 2018 and moving forward with our proj ects. You can see in our budget there are quite a few grants. This year started the process for the Multi-hazard Mitigation Plan. We're trying to achieve a fairly, workable, good, accurate document this time around so that we can have it dovetailed off of the General Plan for the County. The outcome would be projects, where if we have incidents, such as flooding or lava, that there is actually actions associated with those disasters. So at this time, I'll open it up for questions. CHR. DAVID: Thank you. Thank you, Administrator. Council Members, questions for Mr. Magno? Thank you very much, Ms. Kierkiewicz. Go ahead. MS. KIERKIEWICZ: Thank you, Chair. Hi Talmage. MR. MAGNO: Good morning. MS. KIERKIEWICZ: We met a couple of weeks ago, and so I just want to re-ask some of the questions that we discussed because I thought we had a really meaningful conversation. What are some of the lessons you and your department, your agency, learned as a result of the Kilauea eruption, and on top of that, there was also Hurricane Lane? What are some of the lessons learned, that you were finding ways to now address within your operations? MR. MAGNO: Well, after most incidents and definitely with something this size, we do what's called an "After Action Review." We follow the FEMA (Federal Emergency Management Agency) template in developing ours. We met with all Page 212 FC-8 April 18,2019 the departments, partners, nongovernment agencies to ask that question. If there are things that we can address within the departments, you know, we definitely will take those actions. I think some of the big ones were doing is—some of the groups that we never had much interaction with before and know that they had a big role on what went on, we've started to work with these folks. MS. KIERKIEWICZ: Would you elaborate on that a little bit more? MR. MAGNO: Right. So a few of these groups, like the faith hui, the churches and so forth, they apparently had been they have, I guess, group that have been together for a while. They came together during the eruption and supported a significant population. I've known that the plan for any kind of disaster is that they definitely take care of their own congregations. But they were very active in the eruption, and so they actually belong under volunteers in disasters, that big program, which is actually a national program. So we're trying to build you know, Susie kind of talked about that. We're trying to bring, you know, bolster that VOAD (Voluntary Organizations Active in Disaster) group up and bring all the nongovernment agencies under them. You know, I think set a pretty high bar with the response to the eruption, and we kind of want to stay at that level, and so that means bringing everything that was successful together and fixing some of the loose ends up, which was like this faith hui. MS. KIERKIEWICZ: Okay, I want you to talk a little bit more about that. Say there is a storm tomorrow that hits large swaths of East Hawaii. Do you have a plan in place where you can pull the trigger and assemble all of the entities that are required to step up and help respond in that sort of time of emergency? Can we pull the trigger tomorrow if a storm were to hit? MR. MAGNO: You know, last Saturday we had that earthquake. We pulled the trigger at that level. So I'm 100 percent certain that we'll be able to respond for the sudden onset. You know, storms, hurricanes, they're kind of slow developing so we watch them. But we prepare for the sudden onset, the instant kind of disaster. I think we're better off than when we were in last May. MS. KIERKIEWICZ: The disasters that prolong, like lava eruptions. And if there's devastation from floods or hurricanes, do you feel that you're in a position to work through the recovery period? MR. MAGNO: Well, we're definitely in a better position than we were in May. The recovery, you can see the complexities that have developed with this eruption. Whatever it is, the County is always you know, we work with the other departments in planning. Right now we're actively working on tsunami plans, ramping up for hurricane season. Page 213 FC-8 April 18,2019 MS. KIERKIEWICZ: That's part of the Multi-Hazard Mitigation Plan? MR. MAGNO: All of that is, yes. But we constantly drill so that we're ready. So to answer your first question, yeah, if something happens tomorrow, we'll be ready. MS. KIERKIEWICZ: It will be more coordinated than last year. MR. MAGNO: I think last year was coordinated anyway. MS. KIERKIEWICZ: Okay. But who was the over-arching coordinating entity? Because I feel like it was such a big, unprecedented disaster that many felt there was a void in terms of the County not stepping up in all arenas. And it was just such a big disaster, I don't think any one entity could have actually taken care of all aspects of disasters response, transition and recovery. MR. MAGNO: Right. I think all the response, activities we were fine with. The State stepped in to support us. Nationally, the nation stepped in to support us, as well, through other states supporting us, and as well as the Federal government. MS. KIERKIEWICZ: And did they step in because you asked them to, or they just felt that they needed to be there to help oversee the County's response? MR. MAGNO: It's part of the national disaster response. FEMA has gotten proactive. They—let me step back. So HI-EMA (Hawai`i Emergency Management Agency), whenever we need national resources or state resources, we go to HI-EMA; so they're there all the time. The governor's, you know, always interested. They got to brief in, so they're onboard from the get-go. As soon as the seismicity started happening in Leilani, they were apprised of what was going on. The Federal Government, FEMA, they're always forward-leaning. Once they hear of things going on in the nation where they think that they're activated, there were here. They were on the ground listening to what was going on,preparing for their insertion into that, into the incident. You know, everybody was here. MS. KIERKIEWICZ: I think the one issue that I had with, like the Federal involvement, was that the rotation of individuals. Every couple of weeks, there wasn't a consistent presence by one person, and so I just felt that kind of added to the frustration of how to respond when you have constant change of individuals from the national level here to support. But that's just my observation. I want to lean in a little bit on a piece that we've heard from the community, and that is the lack of—not enough of communication coming out from the County throughout the lava eruption. And so I'm sure that's a lesson that you feel that you've learned very well. I just wonder what adjustments have been made within Page 214 FC-8 April 18,2019 your operation to ensure that there is a consistent, and accurate, and timely flow of information during times of disaster out into the community. I really want you to think about this and how you respond because it's so critical in today's day and age where everyone's on social media; and if we don't communicate enough, there are these information gaps, and that's when the rumor-mill starts churning. And the County's Civil Defense is a very credible entity. I just want to know what your plan is. Is there a PIO (Public Information Officer? Just what is the internal plan to get that information out? MR. MAGNO: So what's come about through the after-action reviews is the communication part. We had identified the Joint Information Center, which is part of the Incident Command System, how information is shared to the public. As far as social media, you know, that needs to be bolstered. We've identified some groups that will do the social media tracking for us. And so that's MS. KIERKIEWICZ: Who are they? Are they within the County or would they be contracted? MR. MAGNO: They're contracted out. MS. KIERKIEWICZ: They're contracted? MR. MAGNO: Yes. MS. KIERKIEWICZ: Okay. Anything else? MR. MAGNO: Yes. And as far as the PIO, we will work with the Mayor's Office as far as public information. MS. KIERKIEWICZ: So the flow of information, is you get the information from the field expert then you work with the Mayor's Office to coordinate a message. It doesn't just come automatically from Civil Defense. MR. MAGNO: Well, their presence is they're with us. So when we get it, they get it as well. We craft it and push it out. MS. KIERKIEWICZ: We as in Civil Defense or the Mayor's Office? MR. MAGNO: We as you know, during an incident we're all together. The Mayor's staff are in our office, and so through them, we're pushing out the information. MS. KIERKIEWICZ: Okay. I guess I just want to be clear so that—there was so much that happened over the eruption. Many lessons learned that can better prepare our communities in times of disaster and recovery. So I just want to make Page 215 FC-8 April 18,2019 sure that we've learned those lessons and they're formulized in documents so that we're not starting from scratch and scrambling in the future. One of the things that you and I discussed was climate change, and with that comes potentially an increase in the amount of storms that hit our island. And so I was you know, we had talked about how Civil Defense is partnering with the community and businesses to do outreach to really make what I believe needs to happen. Disaster preparedness is part of lifestyle. I mean, we all need to just have "go bags"ready to go in our car, in our home. It's such a massive undertaking. So I wonder how we can work with folks like Susie Bond's group, you know, Citizen Corps Council through Project 360, to break it down into manageable steps for people to achieve. Because if you think about everything that you have to put together in your kit, and the scanning of important documents, and getting that up on the Cloud, and making sure you have your medicine, and your pet food, and toys for kids, it's an enormous undertaking to do the day before we're expecting a disaster. So I just want to know what the plan is to work in partnership with community and business to really get people to start thinking about how they can better prepare themselves and their families. MR. MAGNO: Well, we've been doing it all along. Last year, with the activities, we were not able to do a lot of the programs. So this Disaster Fair that we're going to have in Kona was actually supposed to be scheduled for 2018. We did our first one in conjunction with the Kamehameha Schools Ho`olaulea and Senior Legacy Project in 2017. And so, finally getting around to the West Hawaii one. So what I'm getting at is community outreach, as far as in getting information out with our partners, through our CERT (Community Emergency Response Teams), of which we have four trainings a year around the island. That gets it, you know, down within the communities, as far as reaching out to individuals, getting them trained up, whether they support themselves, their family, or actually join the CERT teams. But the goal is to get it down into the communities. So,just continue public outreach, work with our partners, Hawaiian Volcano Observatory and so forth, to get information out. MS. KIERKIEWICZ: And then is there potential to pop up at various community events? I know there's this effort on June 22nd in West Hawaii but not everybody may be able to have the means to make it to that event, so I just wonder if your team—do you have the capacity, or is this an opportunity to collaborate with community groups to have a presence and really push that disaster preparedness? MR. MAGNO: In fact, the community the preparedness fairs came about because we get so many requests for presentations that—trying to kind of shotgun it, where people would come to us, you know, kind of put it out widely that people could come to us and get a lot more information. You know, that's one way Page 216 FC-8 April 18,2019 we're trying to achieve it. But yeah, we still have the capacity to reach out upon request. MS. KIERKIEWICZ: Okay. And if I could just make a small suggestion? I think it would be great if you guys could launch a speaker circuit; and go to the various rotary clubs, Chambers of Commerce, the Exchange Groups, I mean, that is a very captive influential audience that has networks around the island, and they can help get the message out and figure out how they can plug in to help Civil Defense and the County. I think it also might be an opportunity to reach out to Na Leo TV, and to record a segment about how we can better prepare ourselves as individuals, families, neighborhoods, as communities. MR. MAGNO: We do all of the above. MS. KIERKIEWICZ: Well, that's nice to know, but I think people need friendly reminders. Chair, I'm going to yield my time. Thank you, Talmage, for being here. I don't envy you. You have a very tough job, and so I appreciate you and your staff doing everything you can to ensure that we are prepared and safe. Thank you. MR. MAGNO: You're welcome. CHR. DAVID: Thank you, Ms. Kierkiewicz. I'm going to Mr. Kaneali`i- Kleinfelder, then Ms. Lee Loy, and then Ms. Poindexter. Thank you. MR. KANEALI`I-KLEINFELDER: Good morning, Civil Defense. How are you guys doing. MR. MAGNO: Great, yeah. MS. KALUA: Fine, thank you. MR. KANEALI`I-KLEINFELDER: Okay, I'm looking at the Homeland Security programs. I'm looking at—again, I have the February Budget Status Report, and I'm looking at what's been spent so far. So we just finished up spending 2009 in total, and then 2015 in total. But we have 2016, 2017, and 2018 that we barely touched. So I'm just wondering what those are because I don't know what it is, and what our plan is to spend that and how that applies, and how that can tie into your supplemental request, if at all. MR. MAGNO: Yeah, so it's kind of—they've got an interesting system, so I'll let Kelsey, the accountant, speak to that. MS. KALUA: Hi. I'm Kelsey Kalua, the accountant in Civil Defense. And basically, I work with the grant manager of the Homelands security grants, William Hansen, very closely. So what happens is we get awarded by Page 217 FC-8 April 18,2019 Department of Defense Homeland Security funds every year to kind of help with our operations here in the County. Our projects are based on investments given by the Federal Government. So any project that we have has to fit into usually one of their tie-in investments. It ranges from cyber security, law enforcement, whole community resiliency. So that is what we base our projects on every year, and of course it needs to be approved by Department of Defense, Homeland Security. We just closed out 2015, which I believe the initial grant award was in 2013. So we have two years to spend the money; three years, if we really need it, we can go and ask for an extension. So August 31st of this year, we will have to spend all of our 2016 Homeland Security grant funds. That one was a little different. The only thing we have left to spend, I believe, is maybe a little over $100,000. We gave $460,000 back to Department of Defense so that they could coordinate a Hawaii State bomb squad. 2017 and 2018,primarily focuses on IT (Information Technology)projects and also the expansion of current EOC (Emergency Operation Center), which we are closely working with DPW (Department of Public Works) and IT on. I believe IT is almost done with their projects, which included MPLS network. I believe it was installing the equipment and fiber connectivity. Their well progressed within their projects. And right now, we're working with DPW on starting the construction for our current EOC (Emergency Operations Center) expansion. MR. KANEALI`I-KLEINFELDER: So the funds from that security program, could it be applied towards your Civil Defense Agc (Agency) OCE(Other Current Expense) equipment repairs and other radio equipment? MS. KALUA: Unfortunately, not. The thing with Homeland Security grant funding is it's a they don't like to support maintenance of any kind. It's just to get the initial projects started, and they ask that we as a County continue of the maintenance. For example, any projects that we do for IT, let's just say they buy a piece of equipment, that we can buy the equipment with the grant money, but we can't use grant money to maintain it for any future years. MR. KANEALI`I-KLEINFELDER: So could you buy your equipment that you're asking for? MS. KALUA: Umm, we could. Yeah. (Note: At this time, Administrative Officer Barry Periatt came forward to address the members of the Committee.) MR. PERIATT: Good morning. I'm Barry Periatt. I'm the Administrator Officer for Logistics for Civil Defense. Page 218 FC-8 April 18,2019 When we submit the grant request, this is priority, the funds being awarded. We submit for specific projects. We can only spend the grant funds that award in Homeland Security on those specific projects. To use it in other areas of our budget, it's simply not allowed. MR. KANEALI`I-KLEINFELDER: I'm looking at the 2017-2018, we've got it looks about$1.5 million. What are we spending that on then? Or do we have a is there a plan? MS. KALUA: Yeah, so all those funds have been obligated already. So 2017, we have the IT, I believe it's the secure County website upgrade and also the MPLS network connectivity project. We are currently working on installing traffic cams to help Civil Defense get a better view, you know, during times when we need information out in the field and are unable to get it. Also, our EOC expansion. In 2018, we have a bunch of transfer switches that we'd like to install in County shelters, and also the continuation of our EOC expansion. MR. KANEALI`I-KLEINFELDER: What does EOC stand for? MS. KALUA: Emergency Operations Center. MR. KANEALI`I-KLEINFELDER: Emergency Operation Center? MS. KALUA: Yeah. We'll be making adjustments to the back of our building, which is the old Police cellblock, so that we can have a bigger space during times of response to an event. MR. KANEALI`I-KLEINFELDER: And that can't be used towards repairs? MS. KALUA: No, not towards repairs. They're very strict with the guidelines. Even for like design, as part of the construction, we have to work closely with our FEMA Region 9 representatives to get their approvals. We have tried to ask for like, you know, if we can do maintenance on generators and stuff with the federal grant fund, and we were told"no." MR. KANEALI`I-KLEINFELDER: That's too bad because you have like maintenance, and generator, a/c maintenance, and other things that you could use it for; unfortunately, it sounds like you cannot. MS. KALUA: Yeah. MR. KANEALI`I-KLEINFELDER: And then the 2017-2018 actual numbers in your budget, compared to you 2018-2019 budget, and then the estimate for this fiscal year, interesting the way the numbers are playing. Page 219 FC-8 April 18,2019 MS. KALUA: Yes. MR. KANEALI`I-KLEINFELDER: It's like staff meals, was $75,000 in 2017-2018, but we're only budgeting $3,000 for 2019-2020. MS. KALUA: Because 2017-2018 we had MR. KANEALI`I-KLEINFELDER: We had a lot going on. MS. KALUA: Yeah, we had a lot going on. We blew that out of proportion. But yeah, we always go in with about$3,000, hoping that we're not going to get a large event. It's pretty manageable if we don't have any huge disaster. I've been in accounts—I've been with Civil Defense for six years, and I have never spent that much on meals. We always try and forecast well, but I mean to forecast off of the $75,000 I think would be unrealistic in this case. So we just look back at what was previously spent in a more calm year, and we went off of that. MR. KANEALI`I-KLEINFELDER: So I was looking at that. That made sense to me. But then in the Civil Defense OCE (Other Current Expenses) Miscellaneous Contract Service, we're actually moreI see we almost tripled what you're asking for, for 2019-2020. MS. KALUA: So miscellaneous contract, I believe that's the 115 account. MR. KANEALI`I-KLEINFELDER: Yeah. MS. KALUA: So that I don't know if you guys know, but we overtook the responsibility of the radio towers, the County radio towers, from Police, so we got money transferred from their budget that they used to use to do their maintenance. It transferred over to us. And now with the Radio Manager, that's kind of his funds in that account. There's a big chunk, like $294,000, I believe, and that is for him to maintain the radio system and also get it back to the shape it needs to be so that we can be fully operational. MR. KANEALI`I-KLEINFELDER: Okay, thank you. That makes sense. Yeah, because one the one they all doubled, okay, that makes sense. But the other one spiked, and I was just trying to figure that out. Okay, thank you. MS. KALUA: Thank you. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Chair. Good morning. MR. MAGNO: Good morning. Page 220 FC-8 April 18,2019 MS. LEE LOY: I'm going to lean in a little bit more, and Ms. Kierkiewicz touched upon it, which was the communication piece over this last event, or last two events. And I'm—like her, there's just so many venues to distribute information. I just want to understand better, because you mentioned it was kind of a coordinated effort with releasing information utilizing a Public Information Officer(PIO) from the Mayor's Office. But I see in your budget you actually have one, but that position is vacant. And so I want to understand better why the department is not trying to stand up or fill that position. Talk to me about that, because the communication was—needs improvement. So help me with that, Talmadge, please. MR. MAGNO: Some background is that just as the event kicked off,personnel who was in that position transferred out. So we filled that void, bringing in, you know, alongside with the PIOs (Public Information Officers)that are in the County and the Mayor's Office supporting us, we brought in PIOs from other departments, statewide. And so they supported us by putting information out. The decision was made, you know, looking at the recovery portion of it, that we needed to emphasize more on that. So that position, that PIO/Recovery Specialist, will be rewritten as a Recovery Specialist, and transition into that, going with the idea that the PIO out of the Mayor's Office will support us. MS. LEE LOY: Okay, I'm just going to put it out. I have some general concerns with that, because we rely on the information that is coming out of Civil Defense because of all of the capabilities and technology that you guys get when these types of events happen. And so to pluck someone out of the Mayor's Office during this time—and I hear what you're saying, everybody kind of converges in but in an earthquake they're running their own lives, whereas you guys have a network and a team, and I would rather see it there. MR. MAGNO: So let me interject. So everybody that is responsible to come with EOC, it's stressed upon them that you've got to take care of your life in a way that you can respond. So like I was mentioning earlier, the sudden onset, we build that for that. You know, whatever your family makeup is, you've got to make sure that they're prepared, that you can leave at moment's notice. Like I said, that's what we build for. MS. LEE LOY: So is that job description written into all the PIOs across DPW or Mayor's Office, that is the understanding that if they take that position, whether it's in the Mayor's Office or Parks Department that is the expectation? MR. MAGNO: I don't know. MS. LEE LOY: So maybe you guys need to put your heads together a little bit and manage that expectation. Good information helps us make good decisions, and in times of emergency, that's what the larger public needs. Page 221 FC-8 April 18,2019 I want to talk a little bit about your supplementary request, and maybe this is for Mr. Periatt, because I see it coming from him. It's for an Information Systems Analyst. And as I read the justification, it says, "The current Civil Defense staff does not have the skill sets to bring this project to fruition." Civil Defense does not have a dedicated Geographic Information Systems Analyst, so the GIS. Share with me what that is, because I know Planning uses GIS, and there's a lot of information and different layers within that program. So I just want to understand what this request is. Because it goes on further to say, "This position will coordinate with the DPW GIS Analyst. So help me understand how we're trying to create this synergy with the information that we have through our GIS system, that is pretty much the framework for all of our DPW, I think Police is also using it now. Help me with that, Barry. Thank you. MR. PERIATT: Yeah, there are multiple departments using GIS. CHR. DAVID: Excuse me,just identify yourself for the record, for our staff people again. I'm sorry. MR. PERIATT: Okay. Once again, I'm Barry Periatt. CHR. DAVID: Thank you. MR. PERIATT: I'm the Administrative Officer, Logistics for Civil Defense. Civil Defense, through Homeland Security grants,purchased the three servers that our GIS operates off of right now, and we purchased it for a reason. It was primarily for our use to be able to create an operating system in the Emergency Operations Center so that we can create a common operating picture, have the information for decision-making, and then be able to produce reports and statistics and that. For whatever reasonI won't get into all that—but it's been a slow development process to get to there. We're not there yet. The reason we are coordinating with Public Works is because when we started this project almost six years ago I believe, the Public Works GIS person, Asia Wasser, she was the County's GIS person, so she's familiar with what we're trying to do. Everything that Public Works wants to do with ArcGIS system feeds right into what we're doing with emergency management. And that's why she's the primary link. We meet with her weekly to develop the system and how we're going to do inputs and that. And when you talk about public information, with this ArcGIS system, we're also moving towards being able to have the interactive maps that we put out there so that we can identify roadblocks, we can put out information that's available. You know, we don't have to call you. We don't have to send you a text. It's right there, and you can get that. And that's all worked through the ArcGIS system. The reason we're asking for this position is, Asia works for the Department of Page 222 FC-8 April 18,2019 Public Works. That's where she's hired, with an understanding that during an emergency she will fill in at the Emergency Operations Center. And she's helping us put together the whole system, developing the inputs so we can get the products out of it. There are a lot of, for lack of a better term, nug work involved. A lot of data entry and correlating on the backend and that. And that's what this position is being asked for. It's a temporary position. Temporary hire to get through this whole development process. MS. LEE LOY: Yeah. Thank you, Mr. Periatt. I think that's something we might—as a body we need to consider a little bit as we move through this budget. Because it's that type of cross-collaboration, right? Which then stands up this framework in which not only Civil Defense, Public Works can use, Police can use, then the larger public can use. And that's the type of kind of commitment I want to make to the public, that as we spend your dollars, you're getting more bang for your buck. And so that multi-prong approach, this ability to get mapping information instantly, you know, draw some radius maps as far as who are we touching, what kind road systems do we have there. I just see it as an incredible tool to get out great information to minimize, you know, the public's anxiety about an event that can be incredibly scary, whether instantaneous or over a far more process, which then MR. PERIATT: You've been in our meetings. MS. LEE LOY: I haven't though. I'm just looking at the tools that we have. Because on top of that, after you we have Mass Transit. And so you know, there's a transportation link that we can use, too. Go ahead, Mr. Periatt. MR. PERIATT: Exactly. And that's—like the bus schedule, the routes, is the bus on time and all that. These are all things that ArcGIS can do with this. In addition to ArcGIS, we purchased the Salamander System during the—it's a property accountability/personnel accountability system, during the lava event. That feeds into the ArcGIS system, and it helps create the maps. So that's the whole—we're not going to face other departments to come along with us, but we see a lot of opportunities and that's exactly where our vision takes it. Where Mass Transit, where all the other departments are pulling data and we have a comprehensive information plan. MS. LEE LOY: Thank you, Mr. Periatt. I really do appreciate it. I love the GIS system for all the different layers that are there, specifically the topo (topographical) maps that we overlay for doing some planning. So thank you so much, Talmadge. Thank you. Let's lean in a little bit and think really long and hard on that information piece. Chair, I yield. CHR. DAVID: Thank you, Ms. Lee Loy. Ms. Poindexter, go ahead, and then I'm going to Mr. Richards. Page 223 FC-8 April 18,2019 MS. POINDEXTER: Yeah, I just want to start off by saying thank you for you for always being available to some of my community members in my district whenever we have concerns. You know, being really open to sit down with us and kind of go through some of their issues. Under the community resiliency portion, which is under the Homeland Security grant, correct? I'm assuming that that's where the Community Emergency Response Team, the CERT, falls under? MS. KALUA: Correct. MS. POINDEXTER: Okay. So I know that we've help with like radios and things like that. We want to make sure that either some of the maintenance, or if we need more equipment,just work with us. If we get contingency funds, or if I get contingency funds, I'm more than willing to help in the area that we may be there's a shortfall in, you know, for equipment. MS. KALUA: Okay. MS. POINDEXTER: Because usually there is, right, because it's not really budgeted for in there? MS. KALUA: Yeah, correct. So basically—and that's something we can discuss further with Department of Defense. But in the past, the whole community resiliency portion has been used to fund CERT trainings, and that's about it. So their materials, you know, whatever they need for that. So it's definitely something we can look into, if it's the possibility of covering equipment costs. MS. POINDEXTER: Because, you knowI know especially inI know my district well, where there's a lot of bridges, right? Bridges go down; we become isolated. As a community, we rely on our CERT people. And they needI'm glad you have a radio communication guy in your office because that's key, yeah, to making sure that—because they're the ones on the ground with the people there and know the area. I know that they have been working on, you know, who's in what communities. You know, do we have doctors, nurses, farmers. Can we survive? If we're isolated, can we survive as a community? So CERT is such a critical component for us, and our survival in our community. So I commend you guys on beefing it up with all the trainings. And if there is any way that I can help, I would be more than willing to. Should we have contingency funds, I would love to continue to do that. But I know that—do you want to come up and say ? Can you come to the mic, and then introduce yourself? Say your name for the record. Page 224 FC-8 April 18,2019 (Note: At this time, Ms. Susie Bond came forward to address the members of the Committee.) MS. BOND: Susie Bond, the Head of Citizens Corps Council. Part of what that contingency money has paid for, as well As Neighborhood Watch signs, and for getting other information out into the community. They have that Homeland Security grant, we get a little tiny chunk of it. We don't—most of the money goes to the other major projects, but the little, tiny chunk we have pays for CERT training,pays for Neighborhood Watch signs,pays for handbooks for Neighborhood Watch, pays for some MRC (Medical Reserve Corps) information, as well. So that money is used to support us, because we as Citizen Corps and as the nonprofit like VOAD, doesn't have that kind of money to put out for this type of thing. So we rely heavily on that Homeland Security grant. MS. POINDEXTER: So your Citizen Corps, because that's a different group from just CERT teams, but you sit overall? MS. BOND: Well, CERT is part of the Citizen Corps Council. MS. POINDEXTER: Right. But the Citizen Corps is just a representation from all the CERT teams. Not all of the CERT teams are Citizen Corps? MS. BOND: Right. CERT has a place at the table along with VOAD, and the MRC, and the Neighborhood Watch. MS. POINDEXTER: That makes up Citizen Corps? MS. BOND: Yeah. And then we—most of the money that we have gotten has funded the CERT training because that to us is the most important thing that we need at this point, is the Community Emergency Response Teams. MS. POINDEXTER: Yeah, so thank you. So that is kind of like an area that's underfunded that I think we can help with, if we get contingency funds. MS. BOND: Yeah, it's all volunteer, so that's part of the problem. MS. POINDEXTER: Yeah. Thank you. MS. BOND: But we are—except for the VOAD members themselves, none of those are 501(c)3s, so we can't go out and get individual grants as a board. MS. POINDEXTER: Right. Thank you. And then just one last thing in closing. The last earthquake, I got a text, a televised report,plus I got a phone call at home with a recording, so good job. I called Karen, "Where are you, at the beach? Okay good, no tsunami." But thank you. Thank you for all your work and thank you for the willingness to work with our community members. Thank you. Page 225 FC-8 April 18,2019 MR. MAGNO: Of course. You're welcome. CHR. DAVID: Thank you, Ms. Poindexter. Mr. Richards, go ahead. MR. RICHARDS: Thank you, Chair. Thanks, Talmadge, for coming up. First thing I had was a question concerning a financial question. And I saw Deanna come in. Yeah, she's here. I'm trying to find it here. I'm a little bitoh, I stay fussy. Deanna could come up and answer a question for us because I think you'd be the one. (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee. MR. RICHARDS: In our binder that we received,under Civil Defense 5241.01. MS. SAKO: Sorry, the Salaries and Wages? MR. RICHARDS: Yeah. It tracks along at$744,000, $758,000, and then we have a jump up to $1,522,000 in 2021-2022. My question to Talmadge is going to be, is there something coming that we don't know about or is that a clerical error? MS. SAKO: You know, it looks like the numbers just didn't add up, and we will go back and research that. Because the math, if you look above at 011, it's very consistent all the way across. And it's only that total in third year. MR. RICHARDS: Correct. MS. SAKO: So we'll go check our report. I think it's just a clerical error. MR. RICHARDS: Okay so that makes me feel better about that, so I'm not going to jump on Talmadge on that one. MS. SAKO: Yeah, sorry. MR. RICHARDS: Okay, so that will get checked? MS. SAKO: Yes, we will check what happened. MR. RICHARDS: Okay, I appreciate that. If you could back to us because that gave me a little bit of angst. So that answers the first question. MS. SAKO: No, it'll be corrected in the May 3rd version, even if we have to white it out and type over it. Page 226 FC-8 April 18,2019 MR. RICHARDS: White it out, too much paper. Okay, so thanks, Deanna. That's my question for the financial side. Talmadge, coming back. I'm going to get back to this conversation on communication, and you and I have had long conversations about that. Part of it is what Ms. Bond is talking about, the CERT program. But part of it is what Ms. Lee Loy and Ms. Kierkiewicz have been talking about, and in part with Ms. Poindexter, is the communication. Our community has a much higher need and thereby demand for timely communication coming out of the County. You and I have discussed this, the Information Officer, and I came across the same thing concerning the position. And one of the paradoxes that you and I discussed, was Civil Defense is really almost, I won't say non-existent but very much in the background until something happens, and then it's frontline. And having that as a communication point, in my mind, makes sense except you don't have the same authority if we're not in an emergency situation, so I understand the paradox We were talking about the recent earthquake—seems like this Big Island we always have event after event, after event. Everybody else plans. We just keep enacting our plans every time, which is we field-test everything all the time. The problem is we're not getting that communication out. We had the wildfire thing, you and I discussed with Fire and Police. My constituency raised a concern. We had a Police episode in Kohala, which is very unusual for Kohala. And the community is upset; not was upset, but is upset, because we didn't have the communication coming out of the County for people to make good decisions about their own personal side. The wildfire and other situation, we have good communication between our agencies, Police, Fire and Civil Defense. But getting that message out to the constituency, everybody right away in this County turns to Facebook. Unless we have a dedicated communication line coming out, we're not going to have a very good message coming out to our County. Now I'm intrigued by the statement made about the GIS system because I think that holds a lot of promise, but we're not there yet. I know we've got Mass Transit coming up and the points about the bus. We're going to talk story about that one bumbai, Brenda. This is all good, but the communication is not good. And we're not getting a timely message out from any department, and we need to do a job on that. Spring boarding on that a little bit. Ms. Bond talked about the CERT. We have hardware that hasn't been deployed yet for the CERT command on my side, and there's some good reasons for that; 2018 you guys were a little bit busy, and I got that part. But that being said, now we've got to get the needle going forward. Page 227 FC-8 April 18,2019 What I'm looking for, Talmadge, is we've got to have a communication message coming out. And one of my constituents said, you know, in big cities, if there's a Police event that needs a press release, they hold a press conference, and they get a message out. Now, Big Island has never been in that situation because that's not been our deal, but maybe we're starting to head towards that. So what I'm looking for, asking of you but pressing you, is this where we start looking legislatively? That we do something in Civil Defense and say, you're going to change a little bit and actually be our center of communication? Ms. Lee Loy's comment about someone coming out of the Mayor's Office, fine. But if that's not a 24/7 able to respond immediately, that's not going to work. And the communication I received about a woman from North Kohala, concerning the Police, she was shook-up. And I understand that, especially the fact that no one was communicating anything. That one bothers me. If we think back when all this started, when a lot of it started, our nuclear missile warning. Getting out the information, even to the Council. And I know my phone—every time we have an event, my phone explodes. We need to have a better form of communication. So on one hand, I'm saying we need to get the CERT stuff, on another hand, I'm saying we've got this communication out. What I'm asking you, Talmadge, do you need us to mandate this so we can get this message system and communication center up and running? Because what we're doing now is not working, and the constituency are not happy. So I'm asking, is it—and this is when we have to have these conversations. MR. MAGNO: That's actually—it doesn't have to be mandated. It's part of what we we're supposed to be doing. So if it's not adequate, we just need to ramp it up. You know, we are just starting the process to contract with our mass messaging vendor, and so we're looking to get a little better product, I guess, for that. Easier to use but more, I guess, more capability. So that will enhance mass messaging, as well. Still focusing on email, text, Twitter, Facebook, and the audio message. You know, that's one aspect that we're looking at enhancing our communication. MR. RICHARDS: Your position of the information, and I forgot what the official name was, Public Information and Disaster Recovery Specialist, was that person—did they leave the position just as all this was rolling, or when did that person leave that position? MR. MAGNO: It's just a nature of things. Timing, that's exactly what happened. She had another position offered, and she moved on. I was fortunate to keep her for several weeks afterwards, so that was a big help. But then we kind of rolled through the rest of the event, you know, without that position filled. But I looked at that position, you know. Especially in that example, PIO/Recovery Specialist, those are two jobs in itself. Page 228 FC-8 April 18,2019 MR. RICHARDS: Very different, yeah. MR. MAGNO: So they've got to be separated out. And we've chose that the Recovery Specialist—because of the skillset, the uniqueness of the information that person would, or for that position would hold, that would be more beneficial to the County. Because we have enough disasters, that continuity of information, that knowledge base needs to be kept in the County. You know, during its event—you know, fortunately the Mayor has had a lot of experience in this, so he guided us along. But beyond him, nobody has been through this before. And so you know, everybody was just learning as we went through this with FEMA on the ground, and HIEMA (Hawai`i State Emergency Management Agency) on the ground helping us out. MR. RICHARDS: You know, when I always say it looks good on paper when you're making your plan, public info and disaster recovery, but what I'm hearing is since we plan or we keep having disaster to recover from almost every other month, at least since we've been in office, I'm hearing that having the information, communication, somewhat detailed to that, or position detailed specifically to that is needed, if we want the communication coming out. Which means, we as a Council, may need to do something to help create this position, whether it's a legislative motion or something like that. And I'm pressing you, Talmadge, on this. Because again, we've talked about the communication. We have to increase and ramp up our communication because our constituency is asking for it. And rightly so in this day and age, we have so many different forums, almost too many different types of communication. So I think we're going to have a further conversation on this. And it's not—I'm not directing it at Civil Defense, because this is actually Civil Defense, Fire, Police, and really the County as a whole. So we're going to have to look at that. Even Public Works. We need to communicate. We need to communicate better. So what I'm going to ask is please give this some thought. I'm going circle back and ask you about it to create. And I don't want to back-burner this because even the Waikoloa Village and the fire, we did good except we didn't communicate to the people. And half the people thought they needed to evacuate, half the people didn't know if they were supposed to, and that's a shortcoming on the County as a whole. We have to talk about this communication. So I'd like you to put forth some thought, and then let's story. And we will talk to the other departments that I think need to participate. I think that was a great meeting we had last, whenever that was, summer, late fall, concerning the fire. So the debriefing, loud and clear, more communication to the community. Page 229 FC-8 April 18,2019 With that, the other thing I do want to say and impress, we have to get the CERT repeaters deployed. We've got to get that one finished up, as well. So thanks, Talmadge. I yield. CHR. DAVID: Thank you, Mr. Richards. Mr. Kaneali`i-Kleinfelder, go ahead. MR. KANEALI`I-KLEINFELDER: I just had a follow-up question for Finance regarding the funds that are now going to Civil Service for radio. Where do they come out of the Police budget? I'm looking for that change. (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: That was actually happened in the current fiscal year. So the draft would be between 2017-2018 to fiscal year 2019, and so I can't tell you specifically which line items. There were some various throughout the budget. But if I go back and look at this year's worksheets, I might be able to send you something. MR. KANEALI`I-KLEINFELDER: I was just making sure that we didn't crisscross the two. MS. SAKO: Yeah. No, it all went out of Police and into Civil Defense. But that all happened in fiscal year 2019. MR. KANEALI`I-KLEINFELDER: And then, does the radio shop ? Would I see a drop in salary and wages for a radio shop for Police, if it's all being transferred to Civil Service? MS. SAKO: No, not necessarily salary and wages, because they have their own radio shop and they do a lot of things, like installing equipment in the vehicles and whatnot. MR. KANEALI`I-KLEINFELDER: Okay. MS. SAKO: So it's not exactly the same thing. MR. KANEALI`I-KLEINFELDER: Okay. Thank you. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. Council Members, anyone else? No? Great. Administrator Magno, thank you very much; and Kelsey and the staff also, for coming today. I just want to leave you with this one thought. It's my observation of something that didn't happen at this point and time when we had an emergency. In the prior eruption, I remember that Council Members were notified to attend briefing. You Page 230 FC-8 April 18,2019 know, it was weekly briefing and stuff, and I don't think I remember receiving one for this kind of emergency this time around. So I was just leaving you with that thought. Along the lines of what my colleagues have been saying, if we get notification to participate, to just get information. Council Members are the first line of information. Constituents will call us firsthand to either get information or get reassurances. So I think the participation with this body on emergency briefings especially, is very helpful to us and to our constituents. So just food for thought and encouragement. Thank you. MR. MAGNO: Yeah, noted. Thank you. CHR. DAVID: Thank you very much. MS. KALUA: Thank you. CHR. DAVID: Mahalo everybody for coming. Council Members, a recess maybe? Thank you, seven minutes. Thank you, we're in recess. Recess: At 10:25 a.m., the Chair called for a recess. Reconvene: The meeting reconvened at 10:35 a.m. CHR. DAVID: Alright, Council Members, I am taking the Special Meeting of the Committee on Finance out of recess, and welcoming Mass Transit Administrator Brenda Carreira to the table. (2) Mass Transit Agency: (Note: At this time, Mass Transit Administrator Brenda Carreira, Paratransit Program Manager Tiffany Kai, and Accountant Trixy Miller came forward to address the members of the Committee.) CHR. DAVID: Please introduce yourself and your staff and go right ahead. I see you have a PowerPoint. Alright, go ahead. Thank you. MS. CARREIRA: Good morning, Chair David and members of the County Council. I have here with me Trixy Miller, she's basically our accountant. I also have Tiffany Kai here, Program Manager and Paratransit. So looking at the current fiscal year overview, I did start in November. I actually can't believe it. At the end of this month I've made the six months. CHR. DAVID: Congratulations. MS. CARREIRA: It's gone by, but wow, it went by really fast. Thank you all very much for the time that I've met with you before. You've all been very kind, Page 231 FC-8 April 18,2019 very positive. And I hope that I have been transparent in being able to answer your questions. I am sorry that I was not able to meet with everybody. Especially with Ashley. We weren't able to meet, but of course I'm going to be able to answering your questions today. (Note: At this time, Ms. Carreira provided a PowerPoint presentation to the members of the Committee. For viewing of the subject presentation, please see the DVD copy of the meeting proceedings on file in the Clerk's Office or navigate to the Council's video archives online in the County's webpages at www.hawaiicounty.gov. A hard copy of the presentation is made a part of the record, see Comm. 117.5.) MS. CARREIRA: If I could, Madam Chair, I'd like to respond. I guess the speakers today had several things that they brought up. CHR. DAVID: Yes, suggestions. Thank you. MS. CARREIRA: I'm sorry, I don't know all your names, but there was the one about the driver talking about what he wanted to do to somebody outside. That's not acceptable. That's a crime. They're not going to work for Hele-On. But the complaints, we investigate them. I don't always get copies, but it goes to Kasie (Kasie Kailikea, Transportation Specialist). All the people who answer the phones and my staff, they know they're supposed to send it, usually Kasie then sends it on to Poly-Ad (Polynesian Adventures), because the driver has a right to respond, then it comes back all complete. Then I know the Council Members have sent to me, we do the same. We try to respond to you also, again, with communication. And I appreciate it. You should never worry about saving us that. I want to know. I want to take care of it. Or if it's not, you know because I've got to balance the drivers, and I've got the constituents, and several times, in fact if not all, I do call the people. If there's a phone number, I will call them up to ask for more information. You know, and also to sayI'm not a person who just sits behind my desk. I have to be involved, and that's, for me, the only way to be. So I plan to continue that. But that completes my presentation. Thank you very much for allowing me to come here. I know you've seen me the other days, and part of it was I just wanted to see how it was going. But I thank you for this opportunity. It's great to be in the County again. CHR. DAVID: Mahalo for your presentation, Administrator Carreira. Council Members? Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Somebody else would like to go first? CHR. DAVID: I don't see any lights. Page 232 FC-8 April 18,2019 MS. KIERKIEWICZ: Okay, here we go. Hi, Brenda. MS. CARREIRA: Hi. MS. KIERKIEWICZ: Trixy, Tiffany, great to see you guys and thank you for being here. You know, Brenda, in the few months that I've been on the Council I found you to be very committed to getting Mass Transit on track, and I really believe in the time that you've been with the County, you really helped to right-turn the ship. I think your expertise in the private sector has really helped, and you've been very available to me and my staff. I was really bummed I couldn't make it to the Hub & Spokes meeting, but my staff was there, and they apprised me of what happened. So it's great that things are moving along, because it's so desperately needed for places like Puna. I was wondering if I could call Finance Director Sako up, because now that—the previous Council approved the quarter percent(.25) GET (General Excise Tax) surcharge, there's this infusion of capital into Mass Transit. So in looking at the budget for Mass Transit, it's decreased, but now we have this Mass Transit GET Fund that has increased your total to about$28-or so million. I was just reviewing the GET portion, and I'm hoping Deanna can help me better understand the breakdown on who those monies can be used because I notice in there that some of the money is being used for salaries and wages, and pension and benefits. So I just wanted to better understand the process. MS. SAKO: We did work with Corporation Counsel to make sure we understand, like the appropriate uses of that fund, which is related to transportation systems and capital improvements, and it does have operations in there. So basically Mass Transit, because all they do is buses and transportation, we were allowed to move their expenses over there, whether it's salaries and wages, operations, hiring the bus drivers, all those types of cost. And with the salaries and wages comes all the fringe benefits. But the fringes that you see in there are only directed related to Mass Transit. So only their employees; however, it does include the four new employees, as well. MS. KIERKIEWICZ: Okay, that's very helpful. Thank you. You know, speaking of employees, I was going through the list of folks that are in the Mass Transit Agency, and I noticed that you have some grant revenue coming in, about$3.5-or so million, but I didn't see anybody on staff with your team that is in charge of managing grants. And the reason why I asked that is, because with the Office of Housing and Community Development, they have three or four federal grants that they manage, and there are about six people that have to keep track of all of the data and ensure that they are in compliance with regulations, meeting requirements, and reporting on time. So can you just help me understand how the grants are being managed in your office, and by who? Page 233 FC-8 April 18,2019 MS. CARREIRA: What is happening is actually Tiffany as a program manager took care of all of the grant work. Since I came in, she's supposed to been teaching me that. And I've been talking to Ryan, in the new Administrative Assistant position, that's a person that's going to be kind of more overseeing the grants and helping with proposals. Tiffany will still help; but it was just her. That was it. And so this administrative assistant will be a big thing. So that what she did before. That's too hard for one person. So we're kind of sharing the work with other people. She actually—and I think in the Master Plan ReviewI don't know if it's next year. Not next year, the other years, so that she could get her own Account Clerk, but we could have one Account Clerk helping. These grants are massive. The kind of reports that we have to do, I'm just literally finding out about a lot of them now. And then I will be meeting with Ryan and his boss, Rob, administers of fare funds,next week Tuesday so we can sit down. So what's happening now with everything with the federal grants, a lot of times Tiffany is doing the work, and Trixy is helping me a lot. They prepare, I look at stuff. I am the one who has to verify, and I am the one now that has to—is the only person that the feds allow me to send reports to them. MS. KIERKIEWICZ: The Mass Transit. MS. CARREIRA: Mass Transit Administrator. MS. KIERKIEWICZ: Administrator? MS. CARREIRA: As Mass Transit Administrator, yes. MS. KIERKIEWICZ: Okay. MS. CARREIRA: Which is fine. So, we can have more meetings. I'm hoping that when we sit down, we can really go through all of the forms, so I know what it is. Tiffany has been doing a great job. You know, lots of times she's been probably doing three jobs. So try and ease some of her work so she can do more with the paratransit and programs, because she'll still be part of part of the changes. MS. KIERKIEWICZ: So how many years has MTA (Mass Transit Agency) been receiving federal grants? Because I understand that we're getting money from a couple of programs, the 5311 and the 5309, and so how many years have we been receiving grants? MS. CARREIRA: I would have to ask Tiffany on that, but I do know since 2013, and in 2019 when I talked to Ryan last week Friday, there were three years that they didn't give us money. Page 234 FC-8 April 18,2019 MS. KIERKIEWICZ: There were three years that the County didn't get money, because why? MS. CARREIRA: The reporting. MS. KIERKIEWICZ: The reporting. Okay, so let's spend a little time on that. Because you talked earlier about the handling of cash within Mass Transit, and all ofI just want to point out, all of this precedes you, so you're inheriting I think a very complex situation. You're doing your best to navigate, and I really appreciate that. So we had issues with cash handling; how are we handling the data? Because my understanding is the National Transit Database is a Congressional requirement, where Mass Transit agencies across the country have to provide data on rider transit, and in other transit systems; that way they can see the state of affairs of Mass Transit systems across the U.S. and can better understand where they need to point resources into. So how is the data being managed? And if there a few years where we didn't receive these monies, I'm a little bit concerned about the management of data and ensuring that we have the systems in place. And I wonder, was lack—was there just enough capacity in order to manage, containing, and capturing all of that data? MS. CARREIRA: You know, I would say yes, because at a certain point there were only three people working at Mass Transit: Tom, Tiffany, and Betty. They had to do everything. So now we have more people. You know, I'm hiring somebody else for an 89-day contract. So once I found out what happened on last week Friday was that they want to know revenue miles. With the money they pay us, what are you using with the money? I mean, how many miles is the bus going? So we have to track. MS. KIERKIEWICZ: So do you track that? Because you're working with various contractors, correct? MS. CARREIRA: Exactly. So for every driver, whether you're a county or private contractor, they have to do a precheck of the bus. They have what they call a DVIR , sorry, Driver Vehicle Inspection Report. One of the first things they have to put on is the beginning mileage. At the end of the day, is the ending, you know the ending mileage, that total recapture—whether Tiffany had a form, but I had Trixy create a new form, and we're going to give it to the contractors to say every single day you need to put that in. Our DVIRs come back to us. That is something that I'm expecting. The garage supervisor, or right now Cody or Betty, to capture that information. That's the first, what are the miles? Page 235 FC-8 April 18,2019 Now, the trip sheets. For every route, there's a trip sheet that the driver has. That shows all the places that they stopped and how many people they pick up, you know, seniors, adults, children, and they all have to have that, and then the collection of the money. Those trip reports come with the fare collection boxes, the money boxes. They put it in there. It's locked up, and we get it. And we open it up, we make the count. That goes into a report, also. That is an account clerk responsibility. We now have other people because we're behind, trying to catch up. And so we were MS. KIERKIEWICZ: You're behind in catching up on which aspect? MS. CARREIRA: Both. MS. KIERKIEWICZ: The DVIR, and the trip sheets, and getting that information? MS. CARREIRA: Yes. Yeah, and so what happened with the Feds, because they talked with me, is they wanted us now to go back to July 2017 to July 2018 to get all of those numbers. So we physically have to go through each piece of paper and that's why we hired another person. MS. KIERKIEWICZ: So how was that data being tracked? You have the papers, but it wasn't like put into a program or a spreadsheet. I mean, how does the reporting work then? So much nitty-gritty details to manage? MS. KAI: So historically, what was that we did have like a basic spreadsheet, where we would track the mileage. However, there were a lot of times where the drivers didn't record the proper or accurate mileage. That's one aspect. MS. KIERKIEWICZ: How did that happen? Do theI mean, numbers are pretty clear. MS. KAI: Right. Or if they had a breakdown, it wasn't recorded at the end of the breakdown. If the bus was towed back, it wasn't properly recorded. MS. KIERKIEWICZ: But how do you know that those things happened if it wasn't recorded? How do you check their work? MS. KAI: Well, those are some of the things that—and that's a good question because not all the time that breakdowns occurred, or road closures, or what have you, wasn't recorded in the past. So basically what we did is we did our best to average the numbers out according to what we had that was accurate and went from there. Page 236 FC-8 April 18,2019 MS. KIERKIEWICZ: So that was 2017-2018, that period of time? MS. CARREIRA: Even years back. MS. KIERKIEWICZ: Even years back. MS. KAI: Would have been years back. MS. KIERKIEWICZ: That there were discrepancies in our numbers for a few years where we didn't get funding. MS. KAI: It wasn't only just the reporting for the National Transit Database. Every so many years, we get audited. And there were the, I'm going to say, deficiencies. We just didn't have the capacity to do all of that. You know, the federal government— MS. overnmentMS. KIERKIEWICZ: What other deficiencies? MS. KAI: Basically, a lot of them were reporting,but just not the National Transit Database, or keeping records of certain things that we should have kept. MS. KIERKIEWICZ: But wasn't that all, like made very clear as part of the federal grant, like what the requirements and expectations are in receiving and utilizing those funds? Like, do they you know, I recognize that many departments get state and federal grants. And I can even see within our County process how we expect the recipient of those funds to keep track of receipts and detail how they spent those monies, because they're public dollars and we need to be accountable to that. So do they not provide you with the systems, and the training, and the templates, and the tools so that you as the recipient can be successful in reporting all of that necessary information? MS. KAI: I'm going to say we do have, you know, regulations that we need to go by; but in all honesty, we didn't, or I should say, I didn't get the training that I should have gotten. So basically how I learned to do it was from the previous administrator. You know, he did a great at administering all of these things, you know. And basically, I'm going to say, "Yeah, Mr. Brown was the one-man band. He did a very, very good job." MS. KIERKIEWICZ: Tom Brown? MS. KAI: Yes. He did a very good job of it, but— MS. utMS. KIERKIEWICZ: So wasn't there this transfer of this historical, this institutional knowledge? If he was so great at it, why wasn't there like a toolkit left, or instructions, or even a sit-down over a period of time to then let you know what the requirements are and how to do things? Page 237 FC-8 April 18,2019 MS. KAI: There was a period where Mr. Brown stayed on contract to assist, but that, you know, only lasted for so long. And thenI take full responsibility, again, of what had happened with our agency. MS. KIERKIEWICZ: How you know, I'm not trying to blame you, Tiff. I just feel like maybe there's maybe something wrong with the system, where clearly for a number of years, if we weren't able to submit the reports, right, somewhere in the County a red flag should have went up that said, "They're lacking bandwidth within Mass Transit, and we need to put resources there to help so that we don't jeopardize losing these funds." How do you think the County—and who could have better supported you? MS. KAI: It's hard to say, comment. You know, and basically we just started getting more staff. Our Account Clerk, I think we got our first Account Clerk maybe only two, three years ago, and before that, it was just—we were on skeleton crew,just doing the best we could. MS. KIERKIEWICZ: I know, and I feel so bad that you had to manage so much of the operations and the second-hand buses. There was just so much to deal with on top of all this additional paperwork. You know, I'm just so sorry. I'm a little bit disappointed that no one recognized that you needed help. MS. CARREIRA: Thank you. And I—you know, when I was thinking about it too you know,part of it is the advantage that I have, is the GET funds. And I think the other times when they were trying to—if we didn't have federal funds to buy the busesI don't believe the County had funds to give us. MS. KIERKIEWICZ: Yeah, but—now, Brenda, that's like $3 million, now you're getting $25 million. MS. CARREIRA: Yeah, so we have a lot. MS. KIERKIEWICZ: And technically, like no strings attached because it's kind of clear that it's just for transportation. So imagine us here at the dais just thinking about the kuleana on your side, this intense responsibility to properly manage the funds. Because we believe in the Mass Transit Plan, and having a legitimate, credible system for Big Island. It's just so needed here. Our island is so big. And with the income levels, people rely—they need reliable, consistent Mass Transit. We believe in it, and we know that you and your team are going to get us there. However, I just want assurances that the data is going to be managed properly, so that there's accurate reporting and we can be responsible for these dollars. There's clearly a breakdown in systems. And maybe we just need some time to meet with federal partners. If we're collaborating with HDOT (Hawai`i Page 238 FC-8 April 18,2019 Department of Transportation), because I'm not sure how the money comes down. But I feel there's a lot of people that want to help, and so maybe putting together a plan to address what I think is not everyone's concerns about,just the data management, that would make us feel much more comfortable. MS. CARREIRA: Definitely. We're creating a plan, sorry, because I just found this out on Friday. So we've already gotten more forms. MS. KIERKIEWICZ: Who called you on Friday? MS. CARREIRA: Brian Fujii. MS. KIERKIEWICZ: Oh, okay. MS. CARREIRA: Yeah, and we're going to have more calls. And that's why his bosses are coming next week Tuesday, so we can sit down MS. KIERKIEWICZ: From DOT (Department of Transportation)? MS. CARREIRA: Well, they're they administered yes, the federal—what? MS. KAI: HDOT. MS. KIERKIEWICZ: Yes, Hawaii Department of Transportation. Yes. MS. CARREIRA: Sorry. Yeah, so they're coming. So I can all the question and they can let me know what it is. But we've already come up with forms that everybody has to use. Even for like because we're worried too, you know, if we have an audit, which fortunately we haven't had it. The do with these DVIRs that I was talking about now, with the buses. Say there's a bus that something is wrong, then the mechanic supposed to have a work order. Then if we have to order parts, to have the invoice, then we all do that. That is something that I talked to the maintenance staff and said, we've got to do that now; and we've got to go back and do it in case we get an audit, and that's going to take time. Now that I know that, oh this what's happening you know, we've go back. So basically, we're going to spending a lot of people, a lot of time getting all this stuff together. So that when Ryan and Rob come on Tuesday, I can give them a plan of what we're doing. MS. KIERKIEWICZ: Deanna, I have a quick question for you, and it just relates to you know, have there been situations in the County's past, where similar to this we didn't get funding or our reports weren't accurate or submitted timely, there were stuff wrong with it. Would we be in jeopardy of losing funds, or having to potentially pay back these funds? Page 239 FC-8 April 18,2019 (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: So that's always a possibility. I mean, there are a lot of restrictions, or a lot of different terms in each of the grant documents. But we do get the Single Audit each year, where the auditors come in and audit each of our federal programs. So they look at the different internal controls and everything related to that. We get a lot of federal dollars, and so they only have to look at major programs, and then a sprinkling of the others. So,you know MS. KIERKIEWICZ: Would this be considered a major program or a little sprinkling? MS. SAKO: It has—in the years we spent a lot because it goes by expenditures, then it reaches a major program. But because there were no expenditures, I think it didn't reach a major program. We were talking in the back too, about how we can perhaps better improve our systems countywide to ensure the reports are getting filed because right now it's left up to each department. MS. KIERKIEWICZ: Okay, so there isn't a countywide policy within Finance that says if we're going to get federal dollars, here's the checklist on what you need to set up. And maybe that's—maybe this is the perfect— MS. erfectMS. SAKO: I think we have that checklist. MS. KIERKIEWICZ: Okay, but maybe the training MS. SAKO: But we're not making sure the boxes are getting checked. MS. KIERKIEWICZ: Uh-huh, that's critical. MS. SAKO: Yeah. MS. KIERKIEWICZ: Okay. And in situations, there might not have been capacity or just a way for—so then would Finance be the checker? MS. SAKO: I don't know that— MS. hatMS. KIERKIEWICZ: Because I wonder if somebody had checked in with Tiff, we would have realized then that she needed support. MS. SAKO: Right. Because right now, it's even you know, for all departments, it's raising the white flag and saying, "Hey, I need help." And when we've been notified, we've been right out there to help. And so, it's making sure we understand. Because, you know, I didn't realize that it had gotten quite this far behind. But while they might say, "Oh, really need help catching up on the Page 240 FC-8 April 18,2019 stats,"nobody said, "Because it's affecting our federal reporting." You know, if you're just telling me you're behind on your stats, I'm like, "Oh, yeah." MS. KIERKIEWICZ: What does that mean, right? MS. SAKO: "For my program budget," "Oh yeah, that's okay. I can live with that,"you know. But yeah, it has to maybe put it in context for us, yeah. MS. KIERKIEWICZ: Okay, I think that's really helpful if we go forward and have a policy. Because we have that$1.7 million for FEMA case management, plus we're looking at a number of monies coming in through the 428 and other avenues. So I just want to be sure that all departments are crystal clear on what the set-up is going to be to track. MS. SAKO: Yeah, and I think pretty much the ones that get those grants regularly, like let's say Housing, right, they get significant amounts of federal dollars. DPW, all of them, they're very good at tracking, they're very good at reporting. And so it's some of the others where, you know, we probably just need to make sure. So we'll be changing some of our procedures to make sure we're closing grants at year end. We're double-checking that all of the reports got filed. MS. KIERKIEWICZ: So like I noted earlier, Housing has six individuals, six positions to manage grants. Do you think that there is sufficient capacity with the current MTA structure of employees to manage these monies, or do you think that they need more? MS. SAKO: I think it's difficult to say that they need more staff just for grants. I think there's been a lot of things that they needed help with, you know, kind of at the same as the buses were deteriorating. You know, a lot of things happened all at the same time. MS. KIERKIEWICZ: Snowball effect, yeah? MS. SAKO: Yes, it was. And so now, we're trying to give them four new positions, you know, which I think will help. And before this, Brenda and I were talking about getting a few more temp people just to help catch up. So we can all kind of even pitch in to help with that, if needed. But like I said, I think you know, when people were telling me they're behind on stats, I heard that, but I really thought it was for the like the program budget and getting us stats, and that wasn't—and like, "Oh, that's okay. If it's a year behind, we'll get over it." But yeah, now I get it. And so, yeah, we can better kind of work through that and help them out a little bit. MS. SAKO: Thanks for being so helpful, Deanna. Page 241 FC-8 April 18,2019 MS. SAKO: I think what might help more is just having been out there and seen it—that somehow finding a system that there's not all this manual tracking and recordkeeping. MS. KIERKIEWICZ: The paperwork. MS. SAKO: And Tiffany having the paperwork. And Tiffany having to remember that the bus broke down that day, the driver didn't note the mileage. You know, I'm listening to her talk about that, and I'm like, "Oh my gosh, I have enough trouble keeping track of myself, much less the 35 different bus routes and everything." So whether it's not—you know,just brainstorming here, but whether it's some kind of GPS (Global Positioning System)that the buses can automatically do it, I think that would probably more helpful to them. I think that would probably be more helpful to them. I think they'll probably have a need for temp-workers right now to get caught up. But then getting it more automated so that they don't have to sit there doing all of this manual tracking, and then that way it should monitor when the bus left to when they get back. MS. KIERKIEWICZ: Yeah, and I mean feel like there's got to be some sort of system that's out there, centralized system. MS. SAKO: That other places are using already, yeah. MS. KIERKIEWICZ: Exactly. And maybe a call to the feds to figure out, what are other jurisdictions using? MS. SAKO: I think that's a big part of why Brenda had set up the meeting with Ryan, so that they can help, yeah. MS. KIERKIEWICZ: Right. Software, there might be an app that drivers can download to their phone. Very easy to just plug in that information when they start the drive and then when they end their route. Okay, Chair, I've taken up probably more than my five minutes. Thank you. Brenda, did you want to say anything else? Thank you, Deanna. Thank you, guys. I know this is, I think, a really difficult conversation and issue to navigate. But I know that you are working hard, you know, with your leadership to really make things right and get the agency on track, so thank you and your team. It's not easy I think to be where you're sitting right now, and to admit to mistakes and shortcomings that may not have even been your doing. So just thank you for being here. It's a very tough position, and I appreciate it. Chair, I yield. MS. CARREIRA: Thank you. Page 242 FC-8 April 18,2019 CHR. DAVID: Thank you, Ms. Kierkiewicz. I'm going to go to Ms. Eoff right now. MS. EOFF: Okay, thank you. So yes, many of us did support the GET surcharge, and one of the big reasons was to improve our mass transit island-wide. We all know that it's really important, and the Mass Transit Master Plan was a big help in getting us focused on how we can get to where we need to be. You said something earlier that I am still thinking about, and it was sort of like the difference between just getting buses as you can as opposed to getting a fleet of buses that may all be the same so that would help with the maintenance, because the mechanics would know all the buses. MS. CARREIRA: Exactly. MS. EOFF: So what do you think is our better route? Because it seems like right now we're still piecemealing the fleet. MS. CARREIRA: Piecemealing is not the way to go, I believe. But we have a bus procurement. I'm just saying well if we use a bus procurement, but if I can order more buses with whatever funds we have, it would be better. I mean, my mechanics be trained. But it's better if you have more of the same because we have companies that are coming to us that now have part stores in Oahu. We didn't have that before. The Electric Builder, Dreams,just opened the store, whatever, in Kapolei. I just saw them this week. Is it MCI (Motor Coach Industries), whatever? They have somebody that they're working with in Oahu that we never knew about. Our biga lot of times it's hard. It takes months to get them from somebody local. MS. EOFF: Right. MS. CARREIRA But we cannot—you cannot favor the other one person. All we can do is, okay these are my specs, but you knowI can put it. You need to a part store in the State or things like that, you know. Because what happens is I'm responsible when we put the put bid out, so I take time to look at it to make sure it's the best to fit us so that when the bus comes, it's easier. I only learn from the past, and talk to Tiffany, talking to the mechanics. Because in all of my meetings with any bus company or anyplace, I always have Cody (Mattos) with me because he knows the bus, I'm not. So that's been a big help. Like in the four mini buses we're getting, I sat down with Eric Solderholm, and went line by line with what we want, and we made changes. And it was only because Cody was there, because I trust him, and I trust his knowledge. But there are so many people wanting to bid, and I said so one of my jobs is to make sure I let people know when the bid goes so there's more people bidding. Page 243 FC-8 April 18,2019 They just didn't know, yeah. If you don't know, you're not going really look at our website the way it's written up. MS. EOFF: It just seems very important that—looking down the line, at the maintenance of the buses that you do choose the MS. CARREIRA: Because I'll tell you, the MCIs for diesel, 40-foot, 425 horsepower, that's the best, in a way, to get over the hill, to get over to the other side, to get over Saddle Road, to get up Kawaihae Road. Because what I didn't want is toinitially, get the 425 horsepower, then you get the 280 horsepower. Then I've got to say, "Oh, the 280 can only go in Hilo." Isn't it better to get one bus that can go anyplace on this island? You know, that makes much more sense to me. But also, it's not all big buses. We have small buses. So that's where the ridership data comes, like how many people are riding. But it may not be as accurate because we weren't as reliable, so the numbers might go off. There's just so many things. You know, coming from private, you know, it's like okay if we have the money,just buy 20 buses. With the County—and it's a different process, which I can apricate, but it's a longer process. You know, with the grants, you get only so much money. Like I said, hooray, yay, with the GET, then I've got to figure out how much each—certain type of bus. You know, my instinct is to go with the ones that are going to be here five, six months from here, but are they the better buses? Electric buses are hard, because since I've here the electric buses never worked. So I don't—you know, I'm not using my money. It's taxpayer's money, so I've got to make sure when they come, they work. But they work other places. You know, they've invited me to look at buses. MS. EOFF: Thank you. MS. CARREIRA: You're welcome. CHR. DAVID: Thank you, Ms. Eoff. Mr. Kaneali`i-Kleinfelder, go ahead. MR. KANEALI`I-KLEINFELDER: Good morning, Brenda. Thank you, ladies. I just want to say thank you. Every time you come up here you always tell us good news, and I like that. And a little bit of bad news in there, but I think at the end of all of that you're a human being, and people makes mistakes. You know, it's what it is; we can get better. So, thank you. We have a really tremendous opportunity to get to one, make a future plan, and really work towards getting Mass Transit up to the standard of other places in the world to use it in a very efficient manner. And I wanted to say to the man behind you, thank you for giving her some praise today because I think she deserves it. I Page 244 FC-8 April 18,2019 saw her smile when you said that, so that was really nice. And to be getting that from the community, that really shows that you're doing a great j ob, so thank you. And I would like to say, please keep in mind there's this mass transit brainstorming, kind of master-mind sessions happening with R&D (Research and Development, and please stay in touch with them as far as when you start to order new buses. Maybe we had an electric bus that didn't work, but if we can start working towards electric buses and/or solar or different technologies to charge the buses. Because we have electric infrastructure on this island already, we can work towards that to be better in the future. MS. CARREIRA: Yes, absolutely. MR. KANEALI`I-KLEINFELDER: Sorry—as well, we're also dealing with this Mass Transit Master Plan and connectivity, and we have and amazing opportunity as well to take this GE(General Excise) funds and apply it towards not only creating a better Hub and Scope system but implementing new roads. Especially in Puna or some of these kind of rural areas where we don't have connectivity. And taking this communication efficiency thing that we're all talking about and going one step further and saying, okay Mass Transit is working towards this, connectivity is working towards this, and across the island. So put everybody on the same boat and say, okay how you're going connect, does that line up with Mass Transit? And we've been working on that in our office for—since—it seems last two months, when I started getting on the connectivity programs and then going on the Mass Transit Master Plan. I'm trying to cross all this kind of overlay. And Lei (Kapuni), my assistant—it's just beautiful with putting all these overlaid pictures on top each other and seeing where they can meet so that we're more efficient. And if County get more efficient like that, my goodness. So please keep that in mind, you know, as far as your budget,just—you have the money behind you to make some really amazing steps forward. So thank you, and I'd like to work towards these goals. And if you need help, come ask me. ). MS. CARREIRA: Okay, thank you. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. Mr. Richards, go ahead. MR. RICHARDS: Thank you, Chair. I had a question for Finance. I don't see Deanna hereoh, I got Steve. (Note: At this time, Deputy Finance Director Steve Hunt came forward to address came forward to address the members of the Committee.) Page 245 FC-8 April 18,2019 MR. RICHARDS: Alright, Steve, before I get in, I've got questions for Brenda. Go ahead, identify yourself here. MR. HUNT: Steve Hunt, Deputy Director of Finance, for the record. MR. RICHARDS: Thanks. Can you summarize total funding for Mass Transit out of all the different accounts, please? I can read through what I've calculated, and you can validate that. MR. HUNT: Including capital? MR. RICHARDS: No. MR. HUNT: Just operating. MR. RICHARDS: Just what I've got out of General Fund, Highway, and GE. So what I calculated, and that's why if you could run these numbers for me if you have them, that's fine. Rough numbers because I'm a rough-number guy. About $3.4 million out of General Fund, $9.2 million out of Highway, and $19.5 million out of General Excise, is that accurate? MR. HUNT: Yes. MR. RICHARDS: Okay, so we have a total of$32.1 million? So carry the two, actually. MR. HUNT: It's $22.1 (million), I believe. MR. RICHARDS: So how do we get$22.1 million, if I have a $19.5 million and a $9.2 million? MR. HUNT: That would be including capital, I believe. MR. RICHARDS: So how we use—is that—as far as capital, is that for bus purchases? Is that how we're categorizing this? MR. HUNT: Yeah, the Hub and Spokes, and bus shelters. MR. RICHARDS: Okay, so the total expenditure—go ahead—why don't we just so we're all starting on the same page, explain the total funding for Mass Transit for 2019-2020 request. MR. HUNT: I believe about$22.1 million in rough numbers in Operating Budget, and about$19.5 million in Capital Projects. Sorry, $10 million, Capital. Page 246 FC-8 April 18,2019 MR. RICHARDS: Okay, so we're at$32 million. So $10 million Capital, $22 million operational? MR. HUNT: Correct. MR. RICHARDS: Okay. And the Capital would include what you were talking about, concerning the MS. CARREIRA: Hub and Spokes and the bus shelters. MR. RICHARDS: And bus shelters, okay. So $10 million for the construction for that? MS. CARREIRA: Right. And I believe we share the capital funding with Highways? With Highways, that$10 million. That's what we're asking for. MR. RICHARDS: Okay. MS. CARREIRA: But I believe Deanna was saying, that$10 million is also shared with Highways. So I don't know what they put in. MR. RICHARDS: Okay. And again, Brenda, so we're all starting on the same page, I've been very critical of Mass Transit. Not that we have to have one, I'm very supportive of that. I've been critical of management and expenditures. Okay, so how do we account for bus purchases in this? Is this as a lease-to-own, coming out of the $22 million, is that how we are? MR. HUNT: Yeah, they're straight purchases outright. MR. RICHARDS: So that will come out of—and that's not considered capitalization? Okay. Okay. So we're committing potentially $32 million of County resources towards the program, is that correct? Okay. Brenda, you and I have met, and we've discussed coming forward. And we both agree that the SSFM Master Plan that they detailed carries a lot of good information. A lot of good, I don't if the word "advice" is, but some good wisdom in there, mana`o. I am deeply disturbed by the information brought forth, or not brought forth but discovered by Ms. Kierkiewicz as far as the management, and this goes back—and it means that we have an institutional problem, and I think you would agree with that. We had a cash issue that came forth through the audit, and very problematic, very disturbing. We know in order for Mass Transit to be successful, we have to commit resources towards it. I'm supportive of that. What I've never been supportive of is throwing resources at something that I don't have the confidence Page 247 FC-8 April 18,2019 that it can be managed. Like I said, I am very bothered by what we've been discussing earlier. We have funds available to us that have not been collected because of problems on our side, and I say "ours" as the County as a whole. Going forward, in order for us to be successful, we need the management in place, and this is the same thing I've said for the last two years. The statements made have rattled that confidence and me. That being said, I still have confidence in you. What are we going to change to make this program successful? MS. CARREIRA: One of the things is I've garnered more of the staff to be able to go backwards and get all of the information as soon as we can, or whatever we need to do. To look at it, and then look at what the other accounts, and then come up with a procedure, written procedure, that everybody has to follow. And we almost have to do daily monitoring to make sure that it's being done. I mean, every day, if it's done. A form that I can look at; or I can ask Trixy, "Show me the numbers, show me the numbers." Every single day. She's backtracking. She's going back now, July-August of 2018. But they just found out on Monday that we've got to go back to 2017. So we have this new person that came in, that just started on Tuesday, that we're going to have her go back and go through all of the forms and put back the program so that we can see where the numbers are. Actually, we do paperwork, and have it in a place where if we had an audit, they could come in and see exactly. Now, we're behind. And I know Sam and I was very transparent with him, and I told him that I didn't know his is what we're going to do in the future. That's why they're coming on Tuesday so they can help me even more so that I know. Because I don't want to lose funds, I don't want us to have to pay back funds, and I don't want to jeopardize the State. MR. RICHARDS: So how broken are we? How far back? What are we talking about? How many years? MS. CARREIRA: Right now he's only asking me for a year to go back. That could change, and they could ask us to go several more years. But right now he's only saying one year, July 2017 to June 2018. But in an audit, they could ask for previous years. MR. RICHARDS: Okay. MS. CARREIRA: I don't know. I'm sorry. MR. RICHARDS: Because of our conversations, Brenda, like I said I do have confidence in you, what you've brought forth. But this is exactly why I've been very critical. MS. CARREIRA: Sure. Page 248 FC-8 April 18,2019 MR. RICHARDS: And increasing the funding from, well, up to $32 million Operational, $22 million, that's up from—off the top of my head I want to say $13, $14 million from last year. So we've increased operational funding by 50 percent. Huge jump in capitalization. And with this kind of information, I don't think anybody on this Council can say they're happy. So that being said, I think I'm going to throttle back right now. But I think we need to have a good conversation bumbai. Okay, Chair, I'm going to yield. No, one more question I've got. CHR. DAVID: Go ahead, Mr. Richards. MR. RICHARDS: How much did we spend? You gave some great numbers, and I appreciated the fact you paid attention to the numbers as far as what we've contracted out. Because when we first met, we talked story about that, so I appreciate you bringing those numbers forward. You had so many numbers, I couldn't keep track of all of those. MS. CARREIRA: Okay, sorry. MR. RICHARDS: I would like a summary. And I don't know if you have a number off the top of your head of what we spent this year on contract labor versus last year. If not, that's fine. Because you had a lot of numbers, I'd like a report for the Council as a whole. MS. CARREIRA: Okay. MR. RICHARDS: And I'd like it reasonably quickly, like tomorrow. Can? MS. CARREIRA: I'll talk to Trixy. MR. RICHARDS: Trixy, can? Got it? Okay, thank you very much. I yield. CHR. DAVID: Thank you, Mr. Richards. Mr. Chung. MR. CHUNG: Thank you. Very quickly. I'm kind of glad he asked that question because I can check that off the list; I don't have to ask that. I wanted to really commend you, Brenda, for all the work you've been doing. I will say that your leadership has instilled more confidence in me of your department and I've had over the last—at least two years, okay, maybe longer. And one of the reasons is your ability to you touched upon it. You said relationship building, but it's really relationships, I think, outside of the department; but I think more importantly within the department. Because I've got say, and I think all of you probably had this experience, we got a lot of complaints, you know, from people within the department. Page 249 FC-8 April 18,2019 And I've always prefaced, you know, my conversations with these people by saying, "Look, I've got to say as long as you guys and I are on the page in terms of moving this thing forward in a positive direction, then I'll listen. But if you're just complaining because things are humbug for you guys, well, you've got to talk to somebody, yeah?" But they made sense. And they're all starting to feel a part of the that they're part of the solution now. So I can see attitudes changing, and that's really important. You want everybody to work as a team, right, over there. So I think that's probably one of your greatest talents, and then of course other things, you know, administratively. But I also wanted to touch upon what Ms. Kierkiewicz and Mr. Richards brought up. I don't know where Ms. Kierkiewicz gets her Intel. It's incredible. But if what she's saying is correct and what you guys have told us is correct—and it's not only concerning, this is actually disturbing. MS. CARREIRA: Yes. MR. CHUNG: And we had a protracted discussion on that. I don't want to go any further. But I have one question, though. If we—well, does this misstep put not only us at jeopardy but the rest of the State? MS. CARREIRA: Yes, Maui. MR. CHUNG: That is not a good situation, right? MS. CARREIRA: No. And I found that out like I said on Friday and contacted the Managing Director the same day. MR. CHUNG: Yeah, can we please address this quickly, forthwith? MS. CARREIRA: We are. MR. CHUNG: And I'm sure the federal government will give us some leeway, but we don't want to assume anything. But this is really a bad situation. MS. CARREIRA: Yes, sir. MR. CHUNG: Okay, thank you. That's all. CHR. DAVID: Thank you, Mr. Chung. Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Chair. All I know is my hands and feet are super sweaty right now after this exchange, and that final question by our Chair has my antennas sky high. So with that,just keep us in the loop, let us know how we can Page 250 FC-8 April 18,2019 help. Hopefully, some of the relationships we have with our federal delegation can help maybe smooth out some rough edges. MS. CARREIRA: Ryan has been absolutely wonderful. And he—he actually, I believe, has been protecting us. I just told him, "Listen, I'll do whatever you want. You want me to go up there every week, every day for two weeks? I will do whatever you want to make this work," and I will. I'll be in a better standing after Tuesday. You know, after our meeting, we're having like a three-hour meeting. And then I'm meeting with the Mayor and the Managing Director next week Wednesday, so that I can actually have the actual facts. We just had that conversation, and my jaw kind of dropped. But we're going to fix this. We're already fixing it. MS. LEE LOY: Yeah, and I do like the rest of this. But I have the most confidence in you, Brenda. I reallyI don't give that away very often. And I have to share that, because I feel like we're about to hit reef little bit. But I do want to call up, maybe Deanna again, and just kind of thinking through some of the conversation related to the federal funds and the reporting requirements. (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. LEE LOY: With the next iteration of the budget, is there a way for your department to show us where these grant monies are, and how they were spent, or the expiration dates? Is there a way to ? MS. SAKO: I'm sorry, for just for Transit? MS. LEE LOY: No, for MS. SAKO: so the Monthly Budget Status Report is a better tool to utilize that. So as the funds get appropriated, they have their line items in the Monthly Budget Status Report; and the grants and the revenue are specifically together in the front of that, in the revenue section. So that kind of shows like was yet to be spent and hasn't been spent, and what might be encumbered. It does not show pre- encumbrances, which is one of the things. Which is like the requisition's in, but for example, maybe with Transit they put a requisition in, but the bus hasn't actually been purchased or the PO (Purchase Order) hasn't been cut. It doesn't show that. But the departments all have those types of records, you know, if needed. But the Monthly Budget Status Report is probably a better tool to look at that, yeah. MS. LEE LOY: Yeah, maybe if you could help. Maybe just for Transit too, because we all want to help. Page 251 FC-8 April 18,2019 MS. SAKO: Yeah. I think we all do. And yeah, so I think we'll definitely focus on them. But we can also sit down and walk you through where like the grants are too, in the Monthly Budget Status Report. MS. LEE LOY: Thank you. One thing Ms. Kierkiewicz and I have learned through this recovery process, is all these monies that come in sometimes they're restricted, we don't know what it can be used for. So having a better, deeper understanding of that, because I think Mr. Richards touched upon this part, is we're infusing a lot of money. And the end-product is a bus and people riding the bus, but there's some systematic framework that has to be stood up first. And my larger concern isI heard you, Brenda, mention that you've developed like a new reporting sheet, right? Tracking Sheet. My larger concern is it might be great and a great tool for us, but I want to ensure that something as simple as that tracking sheet has the proper language or vernacular that will transcend not only here in Hawaii County but the State, and then at the Federal Government for all of the different funding sources that Ms. Kierkiewicz talked about. So I don't want us to reinvent the wheel. I think we really need to reach out to all of the other partners out there so that this tracking requirement, which is holding a large bucket of money for us—it would be a shame for us to create just a simple mileage checklist and then it not translate to the grant funding that's millions. MS. CARREIRA: I can reach out to Maui, because Ryan was telling me Maui has a good system. So we've been talking to them, you know, since I've been an Administrator, and we all share things. I'm not sure I've got to go up there or if they have a program. Because theirs works, you know, we don't want to reinvent that. So we started one right now. But I can talk to Maui; and then when they come on Tuesday, I want to be able to show them what we have, and ask them, "Which would you like us to do? Is it wrong? We need something else?" And I'm sure we can that can happen on Tuesday. Or he can tell me he has a form. But yes, I'm reaching out to Maui. MS. LEE LOY: I had a lot of questions about your presentation, but in light of the realization of this new information, I'm really not ready to talk about four new positions, you know, baseyard. This is alarming. Really, really, alarming. But we'll have another pass at it come May. And it sounds like you have a few meetings between now and then, and so again, the confidence I have in you, Brenda, to go get her done. MS. CARREIRA: Yeah, I'll be happy to come back. I mean, I know I'll have new information at that time, or if not earlier, you know. MS. SAKO: I think we'll work with them too to see if it's software, or a consultant, or what, to get it so that there's a system in place that's kind of more easy to use. I think that's part of the frustration for all of them. And so I think if Page 252 FC-8 April 18,2019 we could just make it easy to use and easy to keep up, that might be the best use of some of the funds right now too. In addition to the buses and everything else that we need. So we'll work on that, between now and May 3rd. So Brenda, we no more much time, okay? Okay. MS. LEE LOY: There's 2:00 and 3:00 o'clock in the morning for me, anyway. You know, I want to walk back toI'm glad that we're trying to shift the conversations by the questions that we're asking, right? And Mr. Kaneali`i-Kleinfelder touched upon it, right? It's this layering. And this is the question I started with when you sat here before us, Deanna, two days ago, which is, you know, how does the budget create across collaboration, across the departments, for better government efficiency and effectiveness? So again,just more food for thought. That's the only way we're going to be able to shift the model, right? We can't keep going down the same choo-choo train track. So Brenda, go get 'em. I know you're tough. I really, really know you're tough. You can do this. Alright, Chair, I yield. CHR. DAVID: Thank you, Ms. Lee Loy. Mr. Richards. MR. RICHARDS: Thank you, Chair. Thanks, Brenda. Once again, our Chair, Chair Chung, very succinctly pointed it. This puts our State at risk, and the angst that that gives me as Ms. Lee Loy said, "alarming." That being said, you talked about building personal relationships, and we've sat down and talked story, I do have faith in you. When we were working on the $60 million at the Legislature, there was a legislator that came up to us and said, "I don't know this, but I know Tim," and we were able to move forward. Okay, I know Brenda. Okay, so I'm willing to move forward. There's some budget hearings, we're not confirming any budgets yet, and we had to be good stewards. So with that, get her done. Let's have a good talk-story. I yield. Thanks, Chair. CHR. DAVID: Thank you, Mr. Richards. Anyone else? Seeing none, Administrator Carreira, it's my turn now. So very, very interesting and enlightening discussion for your department. And based on what I've heard, and what you have to deal with, and what the department has experienced over not only before your time but way before your time, and bringing it up to speed till today, given the situation that we've been apprised right now, I am very confident that under your leadership and your staff, because these things have been identified, that you will address it in a way that will encourage accountability. Not only in your department but in everyone else's department, and I think that's what we've strive for. I'm happy to say that, you know, in the budget hearings that we've been through over the years, this has beenI think this year, and this is just my opinion, but the Page 253 FC-8 April 18,2019 things that have come up have been meaningful, and I think has helped us. It hasn't been easy sometimes to see this, but I think recognizing what's at before us as a body and as the administration, I really want to say that this body, myself included, would love to work with you in whatever way we can so that we can elevate this County to the point where we're working for the betterment of the government and how it operates. You know, I have that feeling and thought for everybody. Regardless of what problems we face, we must be able to address it and fix it. So that's what I get today from all this discussion, and I really, really thank you. I applaud you for what you need to do. If you need anything from us, help from us, please come forward and let us know. MS. CARREIRA: Okay, thank you. Trixy, you wanted to ? CHR. DAVID: Trixy, you need to you want to say something to close before we close? MS. CARREIRA: Okay, thank you, Trixy. What she was telling me is that— what hatwhat we're also trying to do because these DVIRs (Driver Vehicle Inspection Report) have to do with the maintenance of the vehicles—is that we had talked to, I believe, it's Randy Riley's Automotive Department. They have a Main Star program, so they're allowing us to piggyback. And so Trixy's right now trying to look into that program for something that would help us computerize things. CHR. DAVID: Yes, I see. MS. CARREIRA: So that is something thank you, Trixy. CHR. DAVID: Right, so just to me it appears that you folks are all working and on the same page to get to where we need to go and where we have to go. MS. CARREIRA: Thank you. CHR. DAVID: Thank you, Tiffany; thank you, Trixy, and mahalo. Council Members , can we take a two-minute break before we take Parks and Recreation? Seven (minutes)? Alright. Thank you, we're in recess. Recess At 12:25 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 1:02 p.m. CHR. DAVID: Aloha, Council Members. I am taking the Special Meeting of the Committee on Finance out of recess. And before we start with our next department, I'd really like to thank them for their patience. We've been having some really lengthy discussions. Page 254 FC-8 April 18,2019 3) Department of Parks and Recreation: (Note: At this time, Parks and Recreation Director Roxcie Waltjen and Deputy Director Maurice Messina came forward to address the members of the Committee.) CHR. DAVID: So Director Waltjen and Deputy Messina, whenever you're ready, please go ahead with your discussion or PowerPoint, whichever you desire. MS. WALTJEN: Thank you, Madam Chair. CHR. DAVID: You're welcome. MS. WALTJEN: Madam Chair and members of the Hawaii County Council, we are the Department of Parks and Recreation. Aloha kakou. CHR. DAVID: Aloha. MS. WALTJEN: It is a pleasure and an honor to have this opportunity to meet with all of you. To be here today to come before you, the Council, to share our budget, our vision, our achievements, and challenges as we enter into the new fiscal year. I know that by working together we can move Hawaii County forward, because collectively we are stronger, and our diversity makes us smarter. The Department of Parks and Recreation strives to improve the quality of life of our island residents and visitors by providing a full range of recreation areas, facilities, programs, and services throughout the island. As we achieve these goals, we make this island a nice place to live, to work, to visit, and to do business. The department provides a wide variety of recreational and cultural programs, while operating and mainlining 362 sites throughout the island. These sites include beach parks, neighborhood parks, senior centers, community centers, and facilities for active recreation such as ballfields, soccer fields, gyms, swimming pools, tennis courts, and rodeo arenas. In addition, we provide oversight for the PONC (Preservation and Open Space Natural Commission) Stewardship programs, which includes about 4,400 acres of land. The department is responsible for the maintenance and the operation of special purpose facilities, such as the Hilo Drag Strip, the Skeet Range, the Equestrian Center, the Panaewa Rainforest Zoo, Ho`olulu Complex, the Hilo Municipal Golf Course, Alae cemetery, three Veterans cemeteries, and 13 community cemeteries. Needless to say, Parks and Recreation is the most diverse, action, service-driven department in the County of Hawaii. Each division operates to achieve their Page 255 FC-8 April 18,2019 goals and objectives to contribute to the overall operations of the department. We engage with the public on a daily basis. Divisions include Recreation, Aquatics, Cultural and Education, Parks Maintenance, the Pana`ewa Zoo and Equestrian Center, golf course, Ho`olulu Complex, and the Elderly Activities Division. These multi-faceted divisions and sections coordinate, collaborate, to work and to improve the quality of our life. The Department Parks and Recreation currently has a total of 494 employees, and during the summer, it increases to approximately 644 for summer hires. Positions are full-time,part-time, summer, temporary hires, senior employees, hourly instructors, and contract workers. Now we'd like to go over our department achievements, and that will also be done in conjunction with the departmental achievements. CHR. DAVID: Director Waltjen, would you like to introduce the rest of your staff? MS. WALTJEN: I would love to. CHR. DAVID: Okay,please? MS. WALTJEN: Thank you. CHR. DAVID: Thanks. MS. WALTJEN: From the division of—since I came from Cultural and Education, let's go with Cultural and Education. Let's go with Burt Mukai and Morty Carter. CHR. DAVID: Welcome. MS. WALTJEN: We have our Municipal Golf Course manager, Mr. Troy Tamiya. CHR. DAVID: Aloha. MS. WALTJEN: Panaewa Rainforest Zoo and the Equestrian Center, we have Pam Mizuno. CHR. DAVID: Aloha. MS. WALTJEN: Our Park Planner, Mr. James Komata. CHR. DAVID: Aloha, James. Page 256 FC-8 April 18,2019 MS. WALTJEN: Ho`olulu Manager, we have Mr. Dean Goya. CHR. DAVID: Aloha. MS. WALTJEN: Recreation Administrator, we have Mr. Mason Souza, who came late. MS. WALTJEN: Our Aquatics Section Director is Alex, Alejandra(Flores- Morikami). CHR. DAVID: Welcome. MS. WALTJEN: Our Business Manager is Mr. Reid Sewake. CHR. DAVID: Hi, Reid. MS. WALTJEN: And the Administrator of the Elderly Activities Division, Ms. Roann Okamura. CHR. DAVID: Hi, Roann. MS. WALTJEN: Hawaii County Band Director, Mr. Paul Arcero. CHR. DAVID: Welcome. Aloha. MS. WALTJEN: And our Park Maintenance Manager, and not to sayI'm introducing him the last, but it doesn't mean he's the last, because without them we can do nothing, Mr. Jason Mattos. CHR. DAVID: Welcome everybody. Thank you, Director. MS. WALTJEN: And the person who deals with me on a daily basis, and I probably give her a lot of headaches, our HR(Human Resources)person, Lea Kaneta-Ogata. CHR. DAVID: Aloha, and welcome everybody. Thank you. Go ahead. MS. WALTJEN: And now we'd like to go over our departmental achievements. (Note: At this time, Ms. Waltjen provided a PowerPoint presentation to the members of the Committee. For viewing of the subject presentation, please see the DVD copy of the meeting proceedings on file in the Clerk's Office or navigate to the Council's video archives online in the County's webpages at www.hawaiicounty.gov. A hard copy of the presentation is made a part of the record, see Comm. 117.42.) Page 257 FC-8 April 18,2019 MS. WALTJEN: The zoo and the equestrian center, well, yesterday we got a big surprise, because Reader's Digest named the Hilo Rainforest Zoo the best Zoo in the state. They did an article, and it was they did every state and they named which was the best zoo in the state, and the Pana`ewa Rainforest Zoo got the award, which is really good for us, because we know visitors come here, we have something to offer them, so let's make sure that our legislators look at us and say, "Hey, maybe we need more of the TAT." (Transient Accommodation Tax.) Currently, it's one of the most popular visitor attractions on Hawaii Island. As of March 31, 2019, in this current fiscal year, there was 208,139,000 visitors to our zoo. And last year for the same period, we had only 194,309,000 visitors. So it is increasing every single year. We added four new animals, which was made possible with the financial help from the Friends of the Pana`ewa Zoo. We added a black swan, a white fronted capuchin monkey, a black and white colobus monkey, a two-toed sloth; these new acquisitions were made possible with the financial help from the Friends of the Zoo, and we call them FOZ. Going to EAD (Elderly Activities Division), we have six major programs that provide services to over 10,700 seniors annually. Some of the highlights are that they did the Welcome Home, the Vietnam vets commemoration of the 50'h anniversary, that was done. They had 600 people in attendance, and it was the largest event in the United States. Every year they do the kupuna softball tournament. This is their 35h year doing the tournament, and the state championships will also be here. Kupuna hula festival, this will be the 36h annual one happening this year. Last year staff assisted over 1,000 seniors with transportation to and from appointments. For tax assessments, the fifth year in a row we've been number one in the State RSVP (Retired Senior Volunteer Program), we have the most participants in the State. They have donated in excess of 100,000 hours, which have been donated to various State and County agencies, and they have saved the County $1.2 million in labor cost. We are very, very pleased to announce, and I'd like to recognize Roann Okamura, because she wrote a grant, and she was awarded a$750,000 grant from DBEDT (Department of Business, Economic Development and Tourism), for social transportation. The other transportation services that we have is for doctor appointments, you know, that kind of thing. But social transportation takes our seniors to and from social, recreational activities,which is really needed here on this island being that we are so far stretched out. Park Maintenance and Cemeteries, we have established a new work order tracking system so we have a better handle on what needs to be fixed, who's fixing it, where it's at, whether it's completed, whether it has to go out to contract bid, or whatever, so that we can—each and every division can monitor and can follow up Page 258 FC-8 April 18,2019 on their projects. This past year, we completed approximately 2,000 work orders. That's kind of like the going rate about what we do per year. For the past 30 years, we have been receiving complaints about the Honoka`a Arena, when people go in there and there is activity there, fugitive dust flies up into the air and becomes a health concern. Well, Jason came on board and Jason said, "Let's fix it." So we dug out the bottom of the arena, put in new rocks and new gravel, and we fixed that problem and for the first time in 30 years, I have not gotten a phone call telling me that fugitive dust is flying through the air. So big, big mahalos for that. New water main lines was installed at Laupahoehoe Beach Park and Ho`okena Beach Park. The Peter Boy Kema memorial bench was erected at the Old Kona Airport. Apparently Peter Boy, when he was going through some tough times used to go down to the Old Kona Airport and sit by the water and just look out into the water. And that was done in conjunction with the Prosecuting Attorney's Office. Kamehameha Ballfields have been restored. The zoo and equestrian center is repairing and replacing their fencing and all the roofs are being painted. So we're sprucing it up and just in time for our award. Electricians are continuingly upgrading all lighting to energy efficiently lock-sliding systems so we can become more energy efficient. It would be really nice if we could install photovoltaic, but I do know that is a little bit more intense type of thing because the structure of the roof at times will determine what needs to be done and could drive the cost up. But we are always looking for ways to cut energy. Recreation and Aquatics and the Ho`olulu Complex, we have recorded over 4 million activity participants in the year 2018. Some we ran Summer Fun and Intersession programs, and even when we were working with the shelters with the lava event, we did develop additional programs to help that group out so that we could give the kids something else to think about other than the lava event that was going on. We now have our own American Red Cross Lifeguard Certification Specialist. You know, we were having a hard time finding people who could qualify for our lifeguard program, or people who could apply because you need the certification. And Alex decided that she was going to go take the class and become certified, so she can certify her own lifeguards, which is a big help for us. We have filled our vacant ADA Specialist position (Americans with Disabilities Act), recently has come on board, so we are working collaboratively with the ADA people with all programs to ensure that we are being open, and everyone has the opportunity to participate in our programs regardless of their special need. Page 259 FC-8 April 18,2019 We are working to get playing time for new sports,pickleball, futsal, disc golf. So it's somewhat of a challenge because we have so many fields, we have so many facilities, we have a lot of teams. And each year we have additional teams that develop. So sometimes we've got to beg and sometimes we've got to borrow, and sometimes, you know we have to make adjustments, but we are working very hard on that and trying to get everybody to have some time at the facility. The drag strip is open and running smoothly, and we're working to improve the motocross oval and the go cart tracks. And our Recreation Administrator, Mr. Mason Souza, was named the County Manager of the Year. As far as for Culture and Education, they are just about ready to go with this year's Fourth of July celebration, which will happen on fourth of July. They coordinated a very successful Queen Lili`uokalani Festival. And very, very successful also, the Magic of the Seasons, which has been growing. And the participation that has happened with all the County agencies contributing and doing their Christmas trees and their refreshments has been just wonderful. You know, it's been a collaborative effort where we partner with all the different departments, but in addition to that, it's also something that the community we giving back to the community and we're helping them out: "Bring your kids over." Not everybody can afford to have a celebration. But if you can come for one week you can hear some entertainment and have some cheer, that's really a good thing. And of course, the legendary Cherry Blossom Festival went off without a hitch. I think this year was the greatest number of participants they've ever had. And I will tell you, it's upwards of 75,000 people that attend this event. And it's a one-day thing. So it keeps getting bigger and it keeps getting better. The Hilo Municipal Golf Course, although we had approximately 240 inches of rainfall in the Waiakea area over the last year, the golf course team was able to keep the course in playable shape. As of last month, a total of 42,192 rounds of golf was played. And there was 34 tournaments held at the course. No when you're looking 42,192 rounds, in my mind I'm going to tell you this is how it went for me, "Ka-Ching!" Okay well let me tell you about this. A lot of the people that are playing disc golf are seniors. This is their exercise; this is their daily routine. Get up in the morning, rush down there, eat some breakfast, go play golf, come back, sit down all day long and talk story. And the other ones are the monthly cardholders. So you know, we like to keep things available and accessible for all people. You know, whether you're a student or an adult or a kupuna, you deserve to have these things. Page 260 FC-8 April 18,2019 The County Band, in addition to the 24 regularly scheduled concerts, the band performed numerous concerts, celebrations and parades. And they try their best to be at every event that they're invited to. However, sometimes it is a little difficult because if the event or the activity is held on a day where it's a regular working day, most of their members have other full-time jobs. So you know, if they're not there at a certain event, normally that's the case. And they are the biggest performer at the Fourth of July celebration, and they do a wonderful concert every year at the Mo`oheau Park Bandstand. As far as for the Administration, we are filling positions at a rapid pace, and they are being filled in the appropriate manner, according to Civil Service Human Resources Rules and Regulations. We have opened recruitment for Park Caretakers, Groundskeepers, and all of our vacancies that was on the books have been filled. We have been promoting from inside the department to give employees a chance for advancement. So that even if you get in at the ground level, there is some light at the end of the tunnel. And we have constant fiscal oversight and overtime tracking. Just so that you know, in the year from March 2018 to March 2019, we have spent well, let's say $905,000 in overtime, okay. But now, I broke this down. Out of the $905,000, $536,000 of that was for the lava event, so more than half. Just so you know, we are requesting several positions. We are requesting six new positions: a Clerk III, for the Administrative office, HR Division. With all—any time an employee makes a movement, whether they're sick, at work, they go on vacation, they get a raise, they get a demotion, they get a transfer, it requires paperwork. Nothing happens without the HR people. Nothing happens, there is no movement in the department. So right now they currently have the HR Specialist, we have two Clerks, and they are bogged down with getting all this done with a matter of just about 600 employees. And summertime, it kind of triples because the paperwork is three times the amount, because of the short timeframe for the summer workers. In addition to that, we're asking for an Account Clerk for the Parks Maintenance Division. That will alleviate some of the work that is being done right now by the current Account Clerk. You know, with the amount of bids and things that they have to fix, and supplies and equipment that they need to work on, it is far too much work for one person. In addition to that, there is approximately 200 timesheets that they need to be done; and when you have one person doing that, it's a bit much. People have been coming in on the weekends to finish all of that stuff up. We are requesting three park caretakers, night crew: one for Hamakua, one for Kohala, and one for Puna. And we are requesting a requesting a Recreation Technician II for the Puna area, okay. Page 261 FC-8 April 18,2019 In Puna,just so that I can touch on that, okay? We have 19 parks in Puna, facilities, okay? And how many workers do we have out there for maintenance? We have seven workers out there. So it is very, very difficult to keep on top of everything. If you have one—when you're starting your shift, if you have one problem, say at the second park you go to you have some vandalism, your whole day is shot, because immediately you have to clean that vandalism up. So adding an additional position will help us to kind of get through things. It's not going to make us perfect, but it will be a help. We are also asking to fund two unfunded positions, a Park Caretaker in Kona and a Recreation Technician II in Kona. You know, recreation technicians, directors, are needed more and more. The more we can engage our kids, the more we can engage our young adults, keeping them healthy, the more we engage our seniors, to provide program and services, the better our community is, the better our community comes. We want to change three positions, from part-time to full-time, and these are all in the pool. A lifeguard at the North and South Kona area, a lifeguard in Puna, and a lifeguard in North Hilo. So we're taking these part-time positions and making them full-time so that we will have less closures and we don't have to close down. This still doesn't account for the times that we have someone call sick and we don't have enough lifeguards at the pool, okay. We do have active recruitment for lifeguards, and if any of you know of anyone who would want to be a lifeguard, or who is a lifeguard and would like to work for the County of Hawaii, please tell them to call us. In addition to all of this, we are asking for some replacement vehicles. Please understand most of our vehicles are trucks that the Park Caretakers use, our Plumbers, our Electricians. Most of our vehicles have over 100,000 miles. Some of them, as you're driving you can see the road, and I don't mean from out the window. We're asking for a half-ton, extra-cab utility truck, and this will be for the South Hilo power mowers, and a utility van for the Plumbers. You know, there was a time that when we had something break down in Kona, we could—our Plumber's truck couldn't get over to the other side. Couldn't make it, so we had to go and borrow a truck from somebody else to get out there. You know, that's a bad situation, so we don't want to be in that kind of situation. We're also asking for our crew-cab, F-250 utility truck, and this will be in South Kohala for the power mowers. Now, as you know, we can't do all of this alone. We need cooperation. We need collaboration. We need coordination. And I just want to let you guys know that these are the people that we work with. You know, we beg, we borrow, we try not to steal, but I try. Page 262 FC-8 April 18,2019 DPW (Department of Public Works), we use their dump-trucks. We have bulldozer assistance from them. You know, they were responsible for cleaning up behind the Kawamoto Pool and the Hurricane Lane clean-up. We also work with their Planners and their Project Managers in conjunction with our department so that we can move projects forward, but also to ensure that we are doing things all by the book, so we don't get accused of breaking our own rules. We also work with the Department of Environmental Management, and we work with Research and Development. Most recently, we have some Summer Fun bus transportation funding from Research and Development. And we're also in the process of receiving our security cameras' funding. Security cameras are needed because we have any increase in vandalism and people that just basically are working against the common good of everyone. We work with Civil Defense in times of disaster or any time there is some type of hurricane. Or when we need shelters, we work the Fire Department. The Fire Department man most of our beaches. They provide the lifeguards at our beaches. Right now, they are also providing lifeguards at the newly open Pohoiki, which I will give you an update. We got a call this morning, and Pohoiki started out as a circular type of sphere type of beach. Well, now the sand is extending yards out, so it's not turning out to a round type of beach. Two ten-yards of new beach every two weeks, so it's turning out to be a beautiful place. We work in coordination with the Police Department. They assist us with enforcing our park rules and with the homeless situation, so we have been working diligently with them, and we have been trying to clean up our parks, as far as ensuring the safety of our children at the parks. We work in conjunction with Prosecutor's Office,because if you have someone trespass and if they go to court, and if you're not in line with the Prosecutor's Office, we want to make that we're covering all bases so that we can make—we can ensure that it's not just going to get dismissed. We are very thankful for the assistance that we've been getting and cooperation we've been getting from Hawaii County Council. Each and every one of you are on speed-dial, and any time we have a problem and we need something in your district, we give you a call. But you know, we've also got a lot of assistance from you guys, letting us know that you noticed something. But also, you know, the money also does help, okay. We work with DLNR (Department of Land and Natural Resources), with the Department of Transportation, you know, with the Highways, HI-EMA (Hawai`i Emergency Management Agency), with FEMA (Federal Emergency Management Agency. Just to let you know, all of our FEMA reports, all of our paperwork that was required for reimbursements have all gone in, and we await now, Page 263 FC-8 April 18,2019 reimbursements, so we met all the timelines. And I have to thank Reid and Nori (Ishii) because they do a bang-up job on that. Also, each of the departments, whenever we are doing a disaster or some kind of hurricane or anything like that, everybody tracks their expenses. Their time, anything that they need to purchase because of the event, everything is tracked and then submitted to the main office, whereby we submit a big report so that we get reimbursed for whatever we need. And just to let you know, some of the overtime that we had, you know, that overtime that we had for the lava event and the hurricane, 75 percent of that will be coming back to us. The questions is when. And one of our major, major contributors to our collaborative efforts is community groups. We work hand-in-hand with community groups, private individuals, private enterprise, because if we all get together, the process goes a lot easier. We share the resources; we share the glory. Now, let me tell you what we are currently working on. We currently have 32 current projects that the department is working on. Aunty Sally Kalehohano's Luau Hale. The air conditioning system, the study, and the upgrade. We are finalizing the assessment and the recommendations. Clem Akina Park Playground safety, surfacing replacement. We are working with FEMA. This also has been submitted to FEMA. And this was from Hurricane Lane, because it flooded over there, and it damaged the surface of the playground. And right now we're in the construction phase of that project. The East Hawaii Veteran Cemetery Number Two maintenance building expansion. We are working with DAGS (Department of Accounting and General Services) and DOD (U.S. Department of Defense) on that, and right now they are in construction. Gilbert Carvalho Park playground equipment resurfacing replacement. This is a FEMA reimbursement also, and this was from Hurricane Lane. We are also in construction on that. Hilo Municipal Golf Course Maintenance Area Drainage Improvements. You know, in all the years that we've been in existence we've never had a drainage problem, but all of a sudden during this last hurricane, Hurricane Lane, there was like a river that created a drainage problem in the center of the golf course. So right now, we are coordinating in-house with construction resources. You know, any time that we can do construction, or we can do replacement or maintenance in-house, it cuts our cost down more than half, so what we try to do, is we try to do an assessment first off, to see if we have the skills, the equipment, to do the project and if it is permissible to do the project. We follow through in that way. Once that is done, we coordinate. And if it's deemed that it can't be done in-house, then we have to go out for a bid and then that whole procurement process, and then of course that takes a whole lot longer. Page 264 FC-8 April 18,2019 The Hilo Skeet Range. The new high-low house and electrical improvements, the consultant has been selected and a draft contract is being prepared. Ho`olulu Park. The new practice fields, we're preparing the bid documents as we speak. Honoka`a Swimming Pool, the HAZMAT (hazardous materials) removal and the demolition, notice to proceed is on May 6, so we will be going forward with that. You know, the thing about the Honoka`a pool, that pool was built by the community out there. So the community already went in, and they repainted, and they did repairs in the pool. But the roof and the electrical work and things like that, you know, when we went in to inspect, it had some asbestos. So we had to get a HAZMAT team to go in there and do the work. The Honoka`a Swimming Pool, the new electrical service and equipment, the consultant has been selected and the draft contract preparation is in process. James Kealoha Beach Park, the driveway and parking improvements. We are coordinating with implementation with the Department of Public Works. The Kailua Park, the Old Kona Airport, we are going to demolish the old terminal building. Right now, we have it boarded all up. And we'll be designing a new comfort station over there, concession and parking. The consultant is being selected, and a draft contract is in process. Again at the Old Kona Airport, irrigation system replacement. With the Department of Environmental Management and the Wastewater Division we're working on some upgrades. We will continue the ongoing coordination with the other departments so that we can have the best bang for our buck. Kamakoa Nui Park, new dog park. We are in consultation selection, and we will be drafting a contract,preparation in process. Kamehameha Park Ballfield and lighting system renovation. The lights have all been replaced. On the County's part, everything's a okay. What they have found out, that they are still assessing the system for recurring power issues, and it is apparently a HELCO (Hawai`i Electric Light Company) issue. Now I do know that they were out there this past week, did we get any report on that yet? We are meeting with the contractors today. Kawananakoa Gym, this is down in Keaukaha. The consultant has been selected, and we are drafting the contract as we speak. The Old Kona Airport, this is old Kona the Kona Pool. Big one, okay. The Kona pool services approximately 5,000 people per day. So we need to replace the filters, and what we thought of is, you know, instead of just replacing the filters while the pool is being closed, we're going to try and fix whatever needs to be fixed. We have gone out to—in fact, the bid opens today at 2:00 o'clock this afternoon. Page 265 FC-8 April 18,2019 Kealakehe Regional Park Master Plan Update, the environmental assessment and engineering studies. The consultant has been selected, and we will be drafting a contract. The Laupahoehoe Point Park, the main pavilion reroofing and new gutters. It's in construction right now. Oh, one more thing, the boat ramp at the Laupahoehoe Park, we're going to be fixing that, too, okay. Lincoln Park, we're going to be installing new exercise stations in there, equipment layout, and the selection is in the process. In addition to that, you know, we had a community group. Well, a community of artists came to see us, and they would like to they're going to be doing some artwork on each of those little columns that surrounds the park, making it more of a children attracting type of place. Each of those columns will have an alphabet on it, and it will be all done in mosaic; and the alphabets are being created by the seniors at the Kamana Center, and the mosaic artwork will be—like for A, it will have A, it will have an apple and then a background, so each of those. The artists are all going to be they're going to be doing all the work. We're going to be assisting them with purchasing the supplies that they need, and they will be installing. And of course my $64 million question was, "If it gets damaged, what's going to happen?" They said they'll come back and replace it, so that's a good thing. Malama Park, reconstruction of a comfort station. The roofing kind of was falling in, so we're redoing that. And we're going to be coordinating an in-house repair on that. New State HI-EMA (Hawai`i State Emergency Management Agency) Emergency Sirens at various parks. We are working continuously with the State on that. Pahoa District Park, covered play court flooring replacement. We are preparing the bid documents right now. Pahoa District Park field renovations, We're preparing the bid documents. Pahoa District Park playground safety surfacing replacement, we'll be starting that on May 1st Panaewa Rainforest Zoo and Gardens, new aviary building through Friends of the Park, plans and permitting in process. Panaewa Rainforest Zoo and Gardens new butterfly house,plans and permitting in process. Papa`ikou Park, Santos Field pavilion reroofing, coordinating in-house construction. Shooting Range and Training Facility, we are still in the discussion phases with different people that would like to push tis forward. Waiakea-Uka Park, new community center and master plans, we are finalizing the master plan, so we are moving that forward also. Roots Skate Park in Kohala, we're working with the community group to expand the skate park to phase two and delivered a Matson container, and we are in the process of ordering the materials. Hilo Skate Park, we have designated the parcel that is across the Civic Auditorium, where the Hilo Skate Park will be located. We are working on preliminary plans and the environmental assessment documents. Kurtistown Skate Park, we are working with the community group to turn the older unused tennis court into a new skate park. We are working with a group and are in a preliminary design phase. In addition to that, we also are Page 266 FC-8 April 18,2019 working—we have the staff going out and doing estimates to do dugouts at the Kurtistown Park. You know, in addition to just the dugouts, we also want to see how we can implement the ADA accessibility plans also in the same time. Okay, we have 16 ADA projects that are happening. Okay, these projects, we have a deadline of the end of 2020-2021. I'm just going to read them off so that you guys know it's happening. Papa`aloa Park, Pa`auilo Park, NAS Swimming Pool, Richardson Ocean Marine Center, Hilo Bayfront Canoe Area, Kolekole Gulch Park, Disappearing Sands Beach, Miloli`i Beach, Park Maintenance– South Hilo Baseyard, Mo`oheau Ballfield, Pahala Swimming Pool, Kahuku Park, Na`alehu Park, Pahala Park, Pana`ewa Rainforest Zoo and Gardens, and Wong Stadium at Ho`olulu. Now, as I thought about money, you probably are thinking about money too now, okay. So we do have some revenue generating sources. Mauna Kea Recreation Area, we will be finalizing the RFP (Request for Proposal) for concessions. We'll have to Finance by May 1st, and we are working on amending the Special Use Permit to include stargazing. Hilo Municipal Golf Course, we are finalizing the RFPs for the golf course restaurant and pro shop, and current contracts will be up in October 2019. Sponsorship of the County Assets Administrative Rule. The P&R(Parks and Recreation) Rule Number 17, we will have the first draft to Finance by April 26, and the next step after Finance approval, will be public hearing. By working with the community and volunteer groups, we maximize our funds, our resources, and of course we create buy-in. We have the Friends of the Park; we have the Friends of the Zoo. Skate Park community groups, senior groups, Youth Challenge, anybody who comes with a question, concern, you know, if it's a group, we try to get them involved. If we get them involved, we create buy-in, we get the help. It's a win-win for everybody. They feel like their voices have been heard, and that's what we're trying to do. In summation, my personal vision for the department is to improve the public image of County government, restore trust, and change the negative perception of how people view the County worker. And this is how we are trying to do it: I encourage the development, coordination, and implementation of procedures that create win-win partnerships between private enterprise, community organizations, elected officials, and government entities. We share resources. We share financial obligations, and we share the glory of success. We all benefit from working together. I am proactive. We try to be proactive to issues, to concerns, to problems, and challenges. We work collectively with other departments, with other agencies, community organizations. These all create more buy-in and ownership. If they have a stake in it, they're going to take care of it. We engage the community in Page 267 FC-8 April 18,2019 the development of solutions and plans to instill a sense of ownership. Share the kuleana with the hope with the hope that through their involvement vandalism in parks, beaches, and facilities will decrease. We fill all vacant positions in a timely manner to reduce closures due to lack of staffing. All supervisors are undergoing mandatory supervisory training for all staff to ensure that the supervisors have the knowledge, the skills, and training required to effectively perform their duties. When aging facilities are in need of restoration, we try to complete all repairs before the facility completely breaks down. We stress the importance of prevention versus intervention. Most facilities are more than 50 years old, and when repairs can be done in-house, we try to facilitate that process, thus getting the biggest bang for the buck. We bring everyone involved into planning meetings whenever a large-scale project requires the expertise and coordination of several divisions and sections. This validates their importance to the overall success of the project and ensures that everyone is on the same page. I have found that this simple process minimizes mistakes, do-overs, and builds morale within the department, and it creates friendships within the divisions. And we also do this with the other departments because we can get more done together. Whenever our department has to deal with a crisis, a problem, or a challenge, a meeting of the minds is set to ask for possible solutions and discussions. Discussions are entertained to view solutions from all perspectives. Some critical problems have been solved and even prevented by the use of this technique. Employees who go missing in action or fail to report to work without properly leave authorization are dealt with in a timely manner. We no longer have employees out on extended leaves without pay for years because this increases overtime and prevents us from filling those positions to fill the gap services, and it creates staff shortages. Lastly, my philosophy on management with the Department of Parks and Recreation, is like it's a family. We manage our `ohana by celebrating all birthdays each month at staff meetings. We congratulate workers for jobs well done. And if one person is having a difficulty, we surround the wagons and work together as a team to help that person overcome the challenge. We do not throw anyone under the bus. And when we receive praise, it's achieved through teamwork. I want to thank all of you for the time. I hope I didn't talk to too long, but I wanted to be as transparent as possible to let you guys know where we're going, where we're trying to go. I'm driving the bus here, and as I tell everybody all the Page 268 FC-8 April 18,2019 time, "I'm the cheerleader. These people here do the job." Thank you very much. CHR. DAVID: Mahalo so much, Director. Your report has been so comprehensive. I'll be surprised if we have any questions. But yeah, good job. But I do have Mr. Chung and then Ms. Poindexter. MS. WALTJEN: Sure. CHR. DAVID: Alright, Mr. Chung, go ahead. MR. CHUNG: Well, thank you, Roxie, for that very thorough presentation. MS. WALTJEN: We've been watching you guys in the past two days. You know, that gives us some insight, because a lot of times we need to know what's out there because we don't hear everything. By the time they call the director, they're at wits end, okay. They're screaming. So most times they're going to see you guys first, right? MR. CHUNG: Anyway, after that thorough presentation, I suppose I, or we, could ask a lot of questions, but we can do that, I think, at your office. MS. WALTJEN: Sure. MR. CHUNG: All I wanted to say from my side was that your department I looked over all the different departments we had, and your department is associated with a lot of words, and all positive, right? Family, together, smiles, happiness, and things like that. So you're fortunate in that regard, but at the same time, you have to tow the line, you have to be responsible. But I really wanted to thank you for just—you and Maurice, and everyone else here, I mean, I think almost everyone else, has a real "can do" attitude, yeah, and that's very important. So thank you so much. MS. WALTJEN: Thank you. MR. CHUNG: Any questions that I have, I'll ask you later on. MS. WALTJEN: Sure. MR. CHUNG: Thank you. CHR. DAVID: Thank you, Mr. Chung. MR. RICHARDS: Just really quick. Page 269 FC-8 April 18,2019 CHR. DAVID: Mr. Richards, go ahead. MR. RICHARDS: Yeah, thank you. You know, first of all, compliments kind of taking care of the shelters last year. I know you that's something you guys got saddled with, but I think your performance was exemplary. Especially the fact that we're housing animals in a shelter, and that's outside the box. The question I have is, are we getting everything repaired? Is it on the deal? Because I know Pahoa MS. WALTJEN: Yes, things are moving forward. It is not a fast process, you know, it is a slow process. And in addition to that, it's like paperwork after paperwork, and justifying this paperwork, that paperwork. You know, everything has to come together. It's not only the repairing of the fields. You know, in addition to that, we have three fields at Pahoa. Now, we don't want to shut down everything one time and clean it and fix it. So what we're doing is we're fixing one field at a time. Then once that field is ready to go, then we fix the next one so that we don't have a total closure and the community doesn't lose out. MR. RICHARDS: Okay. Thank you, and I just appreciate it. And again, compliments to you guys. I was going down there, as you guys know, couple times a week. MS. WALTJEN: Actually, I want to thank you. Because we had our own veterinarian coming down there at least several times a week and, you know, he checked out all the animals. He made sure we had no viruses going around. And I think you gave a lot of things, like for fleas and things like that. They're all free stuff. MR. RICHARDS: Well, the companies were very supportive. But compliment you guys because every time I went there, I'd check the bathrooms. Always clean, so thank you. I yield. MS. WALTJEN: Thank you. CHR. DAVID: Thank you, Mr. Richards. Mr. Kaneali`i-Kleinfelder, go ahead. MR. KANEALI`I-KLEINFELDER: Yeah, that was most comprehensive report yet. Thank you. MS. WALTJEN: Thank you. MR. KANEALI`I-KLEINFELDER: My only thing that I saw, and good job, that your OCEs (Other Current Expenses) were low for every department, your Page 270 FC-8 April 18,2019 utilization of this, this year. And I know there are a lot of needs in the equipment category for all of the guys out there. I sat and met with Jason. MS. WALTJEN: Great. MR. KANEALI`I-KLEINFELDER: He needs weedwhackers and equipment. I think that's a pretty obvious need. So if Deanna could roll over some of these extra OCEs into equipment, you know, I think that would be good use of that money. That's the only thing I have to say about the budget. So that's all. MS. WALTJEN: Thank you. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you, Director Waltjen, Deputy Messina. You've been so helpful during lava recovery, and even now as we start to improve our community resources so that families can begin to get a sense of normalcy and enjoy those assets again, so thank you. And thank you for helping to make the Uncle Boogie surf event Pohoiki a huge success. Despite the change in landscape of the area, I mean it was incredible. So thank you, and your staff, for working so hard. I'm excited about the work that we're going to be able to do with the additional funds, with Bill 12, Exhibit A, amendment. We're going to be having an Easter egg hunt in Pahoa, so thank you, Mason, to you and your crew. It's going to be really fun and exciting. I just have a couple of questions. You mentioned Lifeguard and wanting to change a few of those positions from part-time to full-time. So specifically for Puna, if it's changed to full-time, does that mean we'll be able to open the Aquatic Center seven days a week? MS. WALTJEN: Once we fill the vacancies, yes. MS. KIERKIEWICZ: Okay, great. MS. WALTJEN: So we need still need people on the list. So if you know of someone, please have them apply. MS. KIERKIEWICZ: Okay, heard you loud and clear. I know there are a lot of improvements that need to be made because our facilities are older and there needs to be the ADA accessibility compliance. Does your department go after CDBG (Community Development Block Grant) monies to make those improvements happen? MS. WALTJEN: Yes, we do. Page 271 FC-8 April 18,2019 MS. KIERKIEWICZ: Okay. I just didn't see any of the projects on the list for the last few years, so I just wondered. MS. WALTJEN: Last few years, the ADA projects was not a major concern of the last Administration. So being we're on a timeline right now, it is a major concern of this Administration. MS. KIERKIEWICZ: Okay. MR. MESSINA: For the current—Deputy Director Maurice Messina. For the current ADA projects, we have a Finance float of$30 million bond to handle these projects. MS. KIERKIEWICZ: Okay. Thank you. And the last question I have, or maybe just more of a comment. When my staff and I met with you for like two-and-a-half hours a couple of months ago, and thank you for your time, I know how busy you are, we talked about how your Park Caretakers spends 80 percent of their time cleaning up after the homeless population at our parks. And I just wonder if there's any work being done in partnership with other departments. And thank you for all of the collaborations you're doing. You are clearly listening to us. We talked about budgeting for outcomes, and you articulated those outcomes. And you've talked about ways of which you are trying to be more efficient and collaborative with your resources. So having said that, what is some of the work? And maybe this is a conversation we can have later. But that you folks are doing, in partnership with other departments and agencies on the County and State level, to begin to address the homeless situation. MS. WALTJEN: Maurice, I'm going to let you MR. MESSINA: So the Mayor's Office, with Sharon Hirota, she's helping take the lead on that. The big projects we're doing right now is basically just—we're talking to them. We're asking them to clean up after themselves. We're asking them not leave needles around. We are bringing in security guards for like at Lincoln Park, which unfortunately was vandalized again this morning. We've done one homeless cooperative clean-up day at Mo`oheau Bandstand; we have another one coming up next month for that. That's where we get the homeless to basically help us clean. You know, we figure we'd make it a little bit more, give them a little bit more ownership of the places where they stay, maybe they'll help us out a little bit. Other than that, it's working with the other—with Sharon, especially. We're really happy that Harry (Kim)brought her on board, because now that's actually the one person that we can go. She's bringing out the showers, the portable showers. We're going to be doing that in Kona pretty soon. But it's really a Page 272 FC-8 April 18,2019 thinking stage right now. We're all supposed to be getting together very soon to talk about this, because we do not want to turn into Oahu, Seattle, or anything like that. MS. KIERKIEWICZ: Yeah. I mean, I think at the end of the day we just want to protect the integrity of our public assets and ensure that your workers are able to do what they're there to do, which is to maintain our parks and not clean them after these individuals. I just see a lot of opportunity. And we can have further conversations about just stepping up those collaborations. I mean, we can look at other jurisdictions that have creative temporary work programs for homeless individuals and bring around those wrap-around services. Like you are doing with the mobile showers, but we can also get vision and health screenings, and if they need transitional or emergency housing, and just other workforce development support. I'll leave it at that. Thank you again for all of your work and your very thorough comprehensive update. It's very appreciated. Thank you. I yield. CHR. DAVID: Thank you, Ms. Kierkiewicz. Ms. Poindexter, go ahead. MS. POINDEXTER: Yeah and thank you. Like what everybody said, I'll ditto that, good report. I just want to give a shout-out to our Honoka`a community. And not only Honoka`a. The other people who are interested in rodeo arenas, because they did—we all came to meet with you folk, and Jason was there. So their voices were heard, and we want to say thank you to the community for always keeping us on our toes to address all different things that are happening in our facilities. So working with good communities, especially when they, the Friends of the Park, you know, that we have in Honoka`a; then the Friends of the Pool, doing so much work and putting in their sweat equity, I would say. But anyway, Pa`auilo Park, I noticed it's on the list for repairs to be with ADA compliance, is that correct? So question, are the lights, you know, that rusted big lights in the park around they've been calling about that for years. Now that is you know, kids have gotten hurt on those. The light—it's just the metal structure. The lights don't work already, right? It's all MS. WALTJEN: You're talking aboutPapa`aloa? MS. POINDEXTER: No, Pa`auilo. MS. WALTJEN: Pa`auilo. Page 273 FC-8 April 18,2019 MS. POINDEXTER: Because Pa`auilo is on the list. I thought I heard you read it off. MS. WALTJEN: Actually, the scope or the contract is going to be finalized next week. MS. POINDEXTER: Okay. So I'll come to talk to you about that. MS. WALTJEN: Okay. MS. POINDEXTER: Because it's dangerous. I mean, it's just all rusted. Huge. Right around the park, you have these light poles and it's real bad shape. MS. WALTJEN: Yeah, and the trees are kind of big too yeah? MS. POINDEXTER: And the kids are starting to climb on that. MS. WALTJEN: Yeah. MS. POINDEXTER: And it's not good situation. So, I'll come. I'll come and meet with you. MS. WALTJEN: Great. MS. POINDEXTER: But overall, thank you so much. MS. WALTJEN: Thank you. MS. POINDEXTER: For all the work you folks do. And, you know, all the calls and the communities coming in to meet with you, and you being just open. So thank you so much. MS. WALTJEN: Thank you very much. MS. POINDEXTER: And thank you, Moe, for taking calls. SometimesI think I even had one at 1:00 a.m. in the morning or something. And then he's responding back. I'm going, "What are you doing up yet?" I'm not expecting something till the next morning. But thank you. Thank you for being accessible. CHR. DAVID: Thank you, Ms. Poindexter. Anyone else before we close? Well, I really want to thank you, Director. Did you you had your light on? Okay, go ahead. MS. LEE LOY: Actually, I thank you. What I really wanted this commend this department for is the ability to have—like generate revenues. So I'm glad you touched upon the Mauna Park, the sponsorship agreement. This is the one Page 274 FC-8 April 18,2019 department that actually has the ability to kind of offset some of the General Fund expenditures with this. MS. WALTJEN: Just so you know, the sponsorship procedures are just about done. So we'll be looking at it after that, and then we're going to try and use it. MS. LEE LOY: Yeah. And so, you know, sometimes we got to help ourselves too, right? Everybody doesn't want a hand-out, it's a hand-up. So the fact that you guys are using these tools and accelerating our assets, like Mauna Kea Park, the sponsorship agreement, the Golf Course, all of that. That helps restore some of the assets, maybe not to, you know, the real need, but at least it offsets, so I really want to commend the department for that. So thank you very much. Chair, I yield. MS. WALTJEN: Thank you. CHR. DAVID: Thank you, Ms. Lee Loy. And continuing where I left off. Thank you, Director, Deputy Director. You folksI can't express how cooperative you and your staff have been. Like my colleagues have said, you are always accessible. You get our concerns addressed right away, whether it's by email or taking it on by yourselves. That really help us do our job as interacting with our community members. So, thank you so much. And your report wasI don't have a question for you, but if I do MS. WALTJEN: Thank you, Chair. CHR. DAVID: I do have some issues that I would like to discuss with you later on, where it's appropriate. MS. WALTJEN: Sure. CHR. DAVID: So I'll contact you guys. Thank you everybody from Parks and Rec. for being here and being patient. And aloha to everybody. MS. WALTJEN: Thank you. CHR. DAVID: Mahalo. Okay, Council Members, I have a question, 2:00? We're in recess until 2:00. Mahalo. Recess: At 1:27 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 2:09 p.m. CHR. DAVID: Aloha, Council Members, and welcome to the Special Meeting of the Committee on Finance. I'm taking this meeting out of recess. And welcoming Mr. Gyotoku, Office of Housing and Community Development. Page 275 FC-8 April 18,2019 (4) Office of Housing and Community Development: (Note: At this time, Housing and Community Development Administrator Neil Gyotoku came forward to address the members of the Committee.) CHR. DAVID: Welcome, Mr. Gyotoku, and please introduce yourself and your staff. MR. GYOTOKU: Neil Gyotoku, Housing Administrator. It's my privilege to introduce my staff. I have Duane Hosaka, my Assistant Housing Administrator. Christine Yuen, she's my Accountant. CHR. DAVID: Aloha. MR. GYOTOKU: Allison Mukai, she heads our grants management. On video in Kona, I have Annie Bailey. CHR. DAVID: Oh, that's who's in Kona. MR. GYOTOKU: Yes. CHR. DAVID: Thank you. Aloha, Annie. MR. GYOTOKU: She heads my Community Development Planning Division. And I have Earl Arakaki, who is right now taking a temporary for the Existing Housing Division head. CHR. DAVID: Mahalo. MR. GYOTOKU: As we said, about two weeks that I came before the Housing Agency, I didn't want to put another PowerPoint to you too, because basically it's the same thing. CHR. DAVID: It's the same. Thank you. MR. GYOTOKU: Maybe I should have so that you don't have many questions for me. But anyway, I wanted to get basically back to what the PowerPoint had said, that it is our mission to provide housing assistance to low-income families. And right now we have over 2,100 families that receive housing assistance throughout the island, and it totals about$18.6 million a year of housing assistance. We also plan and develop community friendly housing projects. Right now I have 35-plus proposed affordable housing projects in the pipeline, and it's all different stages of development. Some are just in the discussion phase. Some Page 276 FC-8 April 18,2019 submitted the 201H applications that we are processing, and some has started to build, like Mohouli III. That's elderly housing, 96 units on Mohouli Street. We're also responsible for federal grants benefit, low- and moderate-income family or persons, under our Community Development Block Grant program. We have $2.5 million in various projects. We also have the Workforce Innovation Opportunities Act(WIOA)program, where we have $1 million, where we try to help displaced or dislocated workers and youth, to try to give them job training and education so that they can get back into the workforce. We also administer and operate four different housing projects: our Uluwini Housing project in Kailua-Kona, Hale Kikaha also in Kailua, O`uli Ekahi along Kawaihae Road, and also Kulaimano Elderly Housing. This morning, on this—sorry, this after, it's been a long day. The main conclusion regarding our budget is that it will not significantly increase from last year. Our total projected revenues for FY (Fiscal Year) 2019-20, it will increase by $444,000, to the total of$26,321,825. And when you add in the CDBG and the WIOA grants, total revenue will increase to $29,821,825. This is per year, for the year. It's important to note that other than increases in salaries and fringe benefits, our subsidy from the County will not increase. We expect to receive $2,125,927 from the County, which is approximately eight percent of our total budget. So 92 percent comes from federal grants and project revenue. With that said, I would just like to open up for any questions that you may have right now. CHR. DAVID: Thank you very much, Mr. Gyotuku. Council Members, any questions for Mr. Gyotoku? Ms. Lee Loy, go ahead. MS. LEE LOY: Yeah, thank you, Chair. Thank you, Neil, for being here, and staff. We had a conversation with another department regarding, you know, the grant revenue source. And I just have a basic question, how secure are these sources? I know some of it is coming from the federal government, which at times can ebb and flow. Share with me a little bit about that. MR. GYOTOKU: All of our federal grants come from either Department of Housing and Urban Development or Department of Labor, and it's on a year-to-year competitive application basis. About four months ago, we had a federal shutdown, and we were really in jeopardy of losing our housing assistance payments to our 2,000 families, so we had to come up with some type of contingency plan where Mayor Kim and Department of Finance, Deanna, Page 277 FC-8 April 18,2019 agreed to try to subsidize for at least two months,which we had enough monies to do. But after that, we would have to stop assisting people and lay them off. On the CDBG, every year we compete, and we get approximately $2.5 million. It's been pretty steady; but then again, it's also not guaranteed that we will receive it next year. The cycle starts usually in November or so, where we take in applications, and we submit the applications. And then in October the following year, we find out if our consolidated action plan is approved, and that grants are approved. So right now we're waiting on 2019, and my staff came to you and explained the different projects that we plan to subsidize. And I think about October or so of this year, we will find out if those projects have been approved and will be funded. MS. LEE LOY: Thank you, Neil. I don't have questions. And I know you came before us just a few short weeks ago, but I appreciate you sharing because that particular housing agency meeting wasn't televised. So in an effort to kind of demonstrate to the public not only what your folk's mission is and the amount of resources you guys hold and how you distribute that, this is the perfect opportunity. Which is why, you know, if the questions seem redundant, it's just because it provides a little bit more bandwidth for other people to understand what you guys are doing. So with that, Chair, I yield. CHR. DAVID: Thank you, Ms. Lee Loy. Anyone else? No? Oh, Ms. Kierkiewicz. Go ahead. MS. KIERKIEWICZ: Hi, Neil. Hi, everyone. Thanks for being here. Thanks for your hard work. Can you remind me Neil, when you folks are expected to get the assessment of what the housing needs are? Last you came to present to us, you needed to work with the contractor to find ways to engage more of the population because the data you needed just wasn't there. MR. GYOTOKU: The basic idea of the housing study was to determine what census tracks are low and moderate income throughout the island. And they went out and did surveys. I believe they're finishing, as far as the finished collection of data. And we expect the final draft to be produced within the next couple of months. MS. KIERKIEWICZ: Okay. And that will tell us what the need is for the low and moderate individuals and families. MR. GYOTOKU: You know, we had some specific quest to survey certain census tracks to help us. Because we use this data as far as for a CDBG Block Grant projects, it has to serve low and moderate income. So off that census tracks that they serve. We need some more data to make sure that we can apply those to census tracks like that. Page 278 FC-8 April 18,2019 MS. KIERKIEWICZ: Okay. You know, one of the questions that we have been asking the various departments and agencies is, what is the outcome your department or agency is trying to achieve? Where is the strategic plan? What is the vision? And what are the key indicators that we can use to measure progress towards the desired outcomes? When you presented an update for your office a few weeks ago, you made a statement about their needing to be 20,000 additional units statewide by 2025 to meet—was it growing population? MR. GYOTOKU: That's the Governor's, as far as affordable housing. MS. KIERKIEWICZ: Affordable housing, right. MR. GYOTOKU: That they want to build. MS. KIERKIEWICZ: And then 9,000 of that needed to happen on Hawaii Island. MR. GYOTOKU: Right. MS. KIERKIEWICZ: So the big question I have, and I continue to have is what is being done by our office to coordinate County, State level to accelerate the piece in which bills these affordable housing units? I know that there's the 201H application, and I wonder if there are other tools in your toolbox that have at your disposal or that you think we need to create in order to drive the development of building more homes. MR. GYOTOKU: As I said, the 201H is like a planning process, an instrument. One of the big factors of building affordable housing is infrastructure, such as water, sewer, and roads. In the past two weeks or so, water has become a real big issue for several of the projects, yeah. Getting enough water and getting to make sure that the aquifers beneath them have sufficient supply to support those housing projects. We cannot—we do not really tell people to where to build. We can only work with them if they have homes, that they have properties, and work with them. MS. KIERKIEWICZ: But don't you think this is an opportunity to then collaborate with Planning Department which manages our General Plan and our CDPs (Community Development Plan), which are created in development with a community to help direct where we want that affordable housing to be built? That way we have the proper infrastructure in place, and all of the supporting pieces, like the recreational facilities, the economic centers. I Just—we want to foster an environment here at the County, where departments and agencies are no longer working in silos, and what we're recognizing as a Council is that the framework we have in place to create the budget doesn't foster that sort of collaborative communication. Page 279 FC-8 April 18,2019 It's not to say that no departments are collaborating, many are. But what's coming to light, when we start having these conversations about budgeting for outcomes, is that there are that departments and agencies are stuck, and we just need to be thinking about and doing things a little differently to foster the creative, collaborative environment that we all want. MR. GYOTOKU: I sat on the special action committee (Special Action Team on Affordable Rental Housing)with the State of Hawaii, and we do work very closely with the State Department of Planning, our Planning Department. They've created this strategy called Transit Oriented Development, where they would develop affordable housing along transit lines and hubs. So we do have plans, and we did submit several projects which are State or County lands that we could use to try to develop—encourage the development of affordable housing. MS. KIERKIEWICZ: So you've developed plans in the last couple of years since you've been Housing Administrator. MR. GYOTOKU: There has been plans and there's has plan development. MS. KIERKIEWICZ: So how many of those plans have been approved and where are we in plan implementation, and what's it going to take to develop those plans? MR. GYOTOKU: It's basically with the State Department of Planning, and they are ones that are the—as far as in-charge of it. But we have inputs from Department of Planning on our agency, as far as, you know, what parcels wanted to do, to look at in developing. You know, a lot of these things, like I said, it's driven by infrastructure costs, getting the infrastructure costs and the financing to develop those projects, like housing projects. And we'll be happy to go over with it. We work with Hawaii Housing Finance Development Corporation in terms of doing all type of financing for projects. They also, if you know what they call low-income housing tax credit program where they lend monies to the different projects that are selected, and they do the financing for them. Much of the problem has been obtaining finance to develop the projects. For example, Mohouli II cost us $335,000 per unit for 30 units to build. And they had to go and obtain financing—and on taxes, tax revenue so that they could get the loans to secure the financing and building a project itself, like that, yeah. It's a very tedious and a very hard process, but it's not like we're not trying to get— MS. etMS. KIERKIEWICZ: Okay, maybe we just need to be talking more with other departments and agencies and working a little bit smarter. MR. GYOTOKU: And we do work Page 280 FC-8 April 18,2019 MS. KIERKIEWICZ: And maybe the idea is not to just develop housing ourselves, but to look at other models. I mean, I'm really excited about the potential for—you know, the Public Land Trust. Maui's got an excellent model that they're running. And so I think having more conversations with other counties and jurisdictions to figure out how can we duplicate that here. I think that would be something that perhaps your office could lead. I know Michael Yee, Director of Planning, has convened a number of conversations. And maybe your office can take the lead on reaching out to Planning to figure out, can we set up another meeting, where all the people that were involved in this initial hui can come together and really hammer out a plan to take actionable steps and create a timeline for action, and really make that happen and get it off the ground. MR. GYOTOKU: And like a lot of our affordable housing projects, there is a requirement that each subdivision developer has to provide 20 percent to low affordable housing. MS. KIERKIEWICZ: Yes, I'm aware. We're very aware of that. MR. GYOTOKU: So we work very, very close with Planning. MS. KIERKIEWICZ: We just approved amendments to Wailani Project District Development Project, which did call for that affordable housing. MR. GYOTOKU: And even on the 201H process, we do work very closely with Planning, Department of Water, DEM (Department of Environmental Management), and Public Works. MS. KIERKIEWICZ: So in the last couple of years you've been the Administrator, can you remind the Council how many applications you've approved? MR. GYOTOKU: We've processed about five different ones. MS. KIERKIEWICZ: So you've processed and approved them. MR. GYOTOKU: But we haven't referred to the Council because, mainly, they've run into major snags as far as water commitments and drainage problems. So until they resolve this, we try to tell them because if we could send it to you, then up to you if you approve it. But if there is problems like enough water, it's, you know, disaster to fail. MS. KIERKIEWICZ: So we have a developer that can develop these units, yet there are some snags along the way. Do you feel it's always incumbent on the developer to solve every issue, or there is something that your agency can do to help alleviate, mitigate, some of those issues or redirect? Because we have these Page 281 FC-8 April 18,2019 goals in place. These outcomes, right, by 2025 we need 9,000 more units. And here are individuals, organizations, entities, that are willing to make that investment in affordable housing, but I'm just seeing a disconnect in how we're able to really realize those projects. And I wonder, you know, if we could just think a little more creatively to get those things done. MR. GYOTOKU: And I don't want to say I disagree with you, but we do work. For example, Councilman Tim Richards can verify that we sat down with this private developers and we tried to work out the different issues that they were resolving. Try to come out with an equitable income that we can get housing. It's not like that we don't make housing. We need to build housing, affordable housing, especially. We do collaborate. I think we do work very hard to try to see if we can resolve the issues between the different departments, with these developers like that, yeah. And like I said, we have about 35 projects in the pipeline. We're all working in various stages with them; you know, to have a lot of meetings with the different departments: Water, DEM, Public Works, Planning departments, and try to resolve these issues. Some of it is out of our control, because let's say a State Land Use Commission issue that the Planning Department would try to resolve. State Land Use Commission, like that, yeah. But we work with them, and we do meet regularly, as far as that. MS. KIERKIEWICZ: Okay. I'm just going to leave it there. You know, like I said, the tone we've been setting across all of these meetings are, "As the departments, as the County, let's set the vision, let's set the outcomes together." MR. GYOTOKU: Yeah. MS. KIERKIEWICZ: Let's identify what those key indicators are to measure progress towards those outcomes. We've got a lot of plans that we have before us. General Plans, CDPs (Community Development Plans), CEDS (Comprehensive Economic Development Strategy). All these different plans. Zero Waste. All this stuff that we just need to better align. That way we can foster a collaborative working environment across all levels of government. You know, at some point after we tackle the budget, it would be great for you to come back and make a presentation on progress that your office has made towards creating that strategic housing plan that we're looking for to meet the statewide goals that we have before us. MR. GYOTOKU: We will. MS. KIERKIEWICZ: Okay, great. Thank you, Neil. I appreciate you being here. I yield, Madam Chair. CHR. DAVID: Thank you, Ms. Kierkiewicz. Mr. Richards, go ahead. Page 282 FC-8 April 18,2019 MR. RICHARDS: Thank you, Chair; and thanks,Neil, for being in front. I just—Ms. Kierkiewicz brings up some very valid points, which again sends the conversation towards looking for budgeting for the outcome. And I have to say though that is a concern, but as Mr. Gyotoku pointed out, housing has been working, and working with me on trying to solve some solutions. And as we've gone through things, we've also discovered some other things that I need a little bit of help getting things done. But one of the things that we trouble on the west side is unexploded ordnance. I'm trying to get that thing resolved, and so I have been working with Neil to try and get that. And hopefully we're real close, Neil. MR. GYOTOKU: Yes. MR. RICHARDS: Get that letter for you. Though I completely agree with what Ms. Kierkiewicz is saying, Neil and I have been working the last four, five months, pretty closely trying to get things done. So thank you, I yield. CHR. DAVID: Thank you, Mr. Richards. Anyone else wishing to say? Okay, Mr. Gyotoku— MS. LEE LOY: Chair? Sorry. CHR. DAVID: Oh, you? Okay, go ahead, Ms. Lee Loy. MS. LEE LOY: Yeah. And thank you. For my two colleagues here, yes, housing is really important. And I hear what Ms. Gyotoku is saying about infrastructure. But what we're trying to do is create those synergies and drive money into those areas so that—and our Chair said this at his inauguration speech, "Government cannot be everything to everybody." We can't do it by ourselves. So if there are ways to create synergy and set a budget that allows for other development to come in or other entities to come in, we get there faster. So I hear what both, well, all three of you are saying, but we're trying to finetune that in a way because this body has to set the budget. That—you've got understand where we're coming from yeah, right? MR. GYOTOKU: I do. MS. LEE LOY: Our job is to policy, legislate, and the set the budget. So you know, the questions here and pinging of all of the other agencies, about how do we collaborate across to create effective and efficient government is the goal, right? People want to know. It's the public's money. We need to be delivering. Page 283 FC-8 April 18,2019 So I just kind of wanted to keep it more on the high level. And yes, I do hear that we're trying to collaborate. But the lens that this body is taking is the money piece. So hand up, right? Not handouts. Right. Okay. So Chair, thank you. Mr. Gyotoku, thank you. I just felt there needed to be some clearing of the air there. So thank you, Chair. CHR. DAVID: Thank you, Ms. Lee Loy. And seeing none, no other discussions, Mr. Gyotoku, thank you so much for being here and also for extending that offer to each one of us to explain the program ahead of time. That really helps in this process, that is like very grueling and time-consuming . So I really appreciate that. MR. GYOTOKU: You're welcome. CHR. DAVID: Keep in touch with us as you move along on issues that were brought up in this discussion. MR. GYOTOKU: We will. CHR. DAVID: Thank you very much. And thank you to your staff for being here. Alright, aloha. Okay, next in line we haveI would like to call up the Office of the Legislative Auditor. (5) Office of the Legislative Auditor: (Note: At this time, Legislative Auditor Bonnie S. Nims came forward to address the members of the Committee.) CHR. DAVID: I see Ms. Nims here. Are you by yourself, Ms. Nims? Well, welcome, and introduce yourself for the record. You don't have a PowerPoint, do you? No, okay. And then, go ahead with your presentation. MS. NIMS: Thank you, Madam Chair. CHR. DAVID: You're welcome. MS. NIMS: Good afternoon, Council Members. I'm Bonnie Nims, the Legislative Auditor, and I humbly come before you today to talk about our office. Basically our job is to do audits. Primarily our office does performance audits, so the economy, efficiency, and effectiveness of all the County departments. We also coordinate the Financial Statement Audit for the County. In the past year, we've issued one report, the Mass Transit Cash Receipt report, and we're still recovering from that, I think. Page 284 FC-8 April 18,2019 We're currently in the process of wrapping up one performance audit and two follow-up reports, and they should probably be coming out in the next six to eight weeks, I'm hoping. The performance audit is on the Department of Water Supply's contingency plans. After a few of their wells went down, there was some concern on how the reaction. We're also doing a follow-up of the 2016 performance audit of cash receipts of Park and Rec., and 2015 performance audit of Information Technology Asset Management. And like I said, those will hopefully be out in the next six to eight weeks. On top of that, we're actually in the process of doing a performance on Real Property Taxes. We're currently in what we call the survey phase, trying to define the scope and objectives. Possibilities include delinquent in tax, authorizing exemptions, and the cash receiving process. We're also in the survey phase for an audit on facilities management of Parks and Rec., and I know Roxcie did an excellent presentation earlier on, on what they're working on, and so we're hoping to verify that. And finally, we're also working on the follow-up of the 2017 performance audit of inventory management at Highways, at Public Works. So that's what we've got on the books right now. Based on the follow-ups that we've done, we found that we're probably about 90 percent effective on having the recommendations implemented, so I view that as being pretty good. As I mentioned, we also coordinate the CAFR for Single Audit(Comprehensive Annual Financial Report). The CAFR was issued in December 2018 by N&K CPAs out of Honolulu; and our Single Audit, which is the audit of the federal grants, was issued in March 2019. This is the third year of a five-year contract, so pretty much par for the course for the value. Other projects that we have in the work is part of the Charter is that we follow government auditing standards. That requires us to have a peer review. Everybody was asked, "Who audits the auditors." We are peer reviewed by an association. The Association of Local Government Auditors comes out, looks at our work, and makes sure that we're meeting the standards, and then gives us a letter. Last time we passed with flying colors, so this year we're hoping we're sure we do the same. We're also in the process of doing our Annual Risk Assessment and Audit Plan, that will be submitted by June 30''. So our budget is really, pretty boring. We are requesting about$800,000, and about 50 percent of that is salary. The remaining is OCE(Other Current Expenses), which is mainly contracts for the CPA (Certified Public Accountant), as well as training, which is required by the Charter, as well as rent. Page 285 FC-8 April 18,2019 So that's about all I have. I just want to thank the Council for all of their assistance and support since I've been here and has made this job a lot easier than it could be. CHR. DAVID: Thank you very much, Ms. Nims, for that report. Council Members? Go ahead, Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. It's so nice to see you, Bonnie, and thank you for coming to my office to talk story about the work that you do, and just some other interesting topics that were covered. You know, couple ofI think it was yesterday we had a discussion with Director Brilhante of HR(Human Resources), and one of the questions I asked was where they were with implementation of a whistle blower, sort of hotline program, and he noted that your office might be the most appropriate place to sort of house all of that information and make determinations as to whether or not to investigate just different things that are reported. I just was wondering if you could comment on that. MS. NIMS: Sure. The research I've done is pretty a general accepted practice to have the internal auditor manage an outside hotline. Most of those are investigations, which we don't have the Charter statutory authority to do. So they would probably be required, without talking to an attorney, a Charter amendment to allow the auditor's office to conduct, if that were the case. Typically, the hotline, you know, it's managed by a third-parry vendor and then it's given to somebody in the County to determine if there needs to be an investigation, or a follow-up, or an audit, or the conclusion on what ways to take it. So without an investigative authority and without a trained investigator, there's not a whole lot I can do besides just hand it back to the department and say, "We found this concern." But it's definitely something that would be feasible, but it would require probably one FTE (Full-Time Employee) and some Charter changes. MS. KIERKIEWICZ: Okay, that's helpful to know. I think as we progress with just learning more about the potential for such a program, we'll be in discussion with you. MS. NIMS: Anytime. MS. KIERKIEWICZ: Thank you. Madam Chair, I yield. CHR. DAVID: Thank you, Ms. Kierkiewicz. Anyone else? Well, you were so comprehensive that I guess we have no questions. MS. NIMS: We try to be easy. Page 286 FC-8 April 18,2019 CHR. DAVID: Either that or you're the auditor and we don't want to mess with you, yeah. MS. NIMS: Yeah. No stay away, yeah. CHR. DAVID: Alright. Well, thank you so much, Ms. Nims, for coming and for your report. MS. NIMS: Thank you. Have a great day you guys. CHR. DAVID: Aloha. MS. NIMS: Aloha. CHR. DAVID: Council Members, staff needs a short recess, so I'm going to take this to recess for two or three minutes. We're in recess. Recess: At 2:39 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 2:40 p.m. CHR. DAVID: Aloha and welcome back. I'm taking the Special Meeting of the Finance Committee out of recess and welcoming the Office of the County Clerk and Elections Division. (6) Office of the County Clerk/Elections Division: (Note: At this time, County Clerk Jon Henricks and Deputy Clerk Aaron Brown came forward to address the members of the Committee.) CHR. DAVID: Our County Clerk, Mr. Henricks; and our Deputy, Mr. Brown, anyway, welcome. Do you have a PowerPoint, by any way? MR. HENRICKS: We're still working on it. No, I'm just kidding. There's no PowerPoint. Just a brief presentation and available for question, and hopefully, answers. CHR. DAVID: Alright. Well, anytime you're ready. Mr. Clerk, go ahead. MR. HENRICKS: Well, thank you first of all, Chair David and Members of the Committee on Finance, for having us today. As you stated, Deputy Brown is here. My name is Jon Henricks, I'm your County Clerk. We also have with us Pat Nakamoto and Cori Saiki from our Elections Division in case there are any questions about our Elections process that require a little bit more knowledge than Deputy Brown and myself have. Page 287 FC-8 April 18,2019 Very briefly, hopefully if I may? We presented to the Committee Communication 117.11, essentially a report on the budget of the—what we call the Legislative Branch. It includes the Office of the County Clerk, on the Hawaii County Council. And for your information, obviously page one, a breakdown of expenses. Not unlike many County departments,weighted it towards salaries and wages. Our greatest resource we provide is human resources as far as to accomplish our goals, and that's reflected in our budget. Second page, top of the page, what we try to do here is make this pretty simple for your inspection. We pulled out changes, variances from the current budget, and we focused on those things that were $1,000 or more, setting that as a pretty round number and threshold that might interest you. So you'll see that there and will be available to answer any questions. Otherwise I would hope that it's very straight forward and easy to understand and appreciate. And then beneath that,just basically we picked out three things, where there were some substantial increases, if you want to use that word, and explaining why. And I'll just briefly go over those things. You know, where we're looking at, sometimes we have a budget that we would consider a nonelection election year there is generally a decrease in our budget due to not needing as many appropriations and revenues to operate our Elections Division. So as noted on the first page, there is actually a slight, very slight, increase in our budget as opposed to a decrease. What we wanted to do is take this opportunity in a nonelection election year to use that balance to invest in the future. And one of the things that we're really excited about is a ballot-sorting machine that we're looking at acquiring for the Office of Elections. That is a fairly large expense, but it is an investment in the future. When we look at what's going on out there right now, in fact there is a meeting that is to convene in about less than an hour at the State Legislature, to be looking at making elections exclusively by mail. And in fact, it's come to our attention today that they're actually considering looking at 2020 instead of 2022, which is currently how the bill is drafted. So it could be as soon as the next elections. So this is the future of elections. You know, even if that is in 2022 or 2024, the reality is that more people are voting by mail. It's increasing. It's convenient. It's something that we see a trend. And certainly if we go towards exclusively by mail, it's something that we see a trend; and certainly if we go exclusively by mail, we expect that to, you know, have a large uptick. What the acquisition of this ballot-sorting machine will mean for us essentially is that I wouldn't say it provide more accuracy. We hire people; they know what they're doing; and they're trained very well. One of the things that I've learned working with Pat more closely is how meticulous our Elections Division is. Needles in haystacks, no problem, easy. But what it will do, is it will make things Page 288 FC-8 April 18,2019 a little bit more efficient. It will allow the Elections Division to make their temporary hires a little bit later in the season, which will come at some savings. So it won't balance out necessarily, but there will be some costs savings. And what I think is important too, it will reduce the amount of staff that Elections will be required to manage and administer, to which in my mind should allow for tighter operations. When you have less temporary workers to manage and look out for, I think that it will become easier to manage those that you have, and you can focus on that. Not that we have ever had any problems. You know, I'd like to point out that, you know, as long as Pat and Cori have been here for Elections, we've never had any problems with our Elections. Another cost that we're looking at, in investment if you will, is ensuring that our livestreaming and captioning can continue. We're in the process of looking at a new contract, which was going to come with some costs for infrastructure. Hopefully, some improved services, but if nothing else continuity and reliability. So that is a cost, but it is an investment in our future And the last increase that would be considered somewhat substantial is due to the fact that we're going to be—our County will be hosting the HSAC (Hawai`i State Association of Counties) for next year not this year, but in 2020, and there are costs associated with that. Fortunately, we expect most, if not all of those costs to be reimbursed through the revenues that the HSAC Conference brings. So that's kind of a zero-out situation. But we do need to prepare and plan for that with funds. Very briefly, I'd just like to because this is also a program review. It's not just looking at our day-to-day expenses. I just wanted to talk a little bit about our department, not just for your benefit. Many of you are you know, especially if you've been around for more than one term, are more than aware of our different divisions and the people we have here, and what they do and why they do what they do. And quite frankly, that pleases me a great deal that you pay attention to our operations. Not just your policymaking duties and duties to your constituents, but our operations here. But just for the public's benefit, and that is also why we included our operational, kind of like an outline, it's for you folks too, to get a sense for pretty much down to the duties of what goes on here every day. But we don't want to take for granted that we're also presenting our budget to the public, the taxpayers, the people that pays the bills here. So what do we do? How do we do it? Why do we do it? Just some very brief highlights,just so that we can make sure that we acknowledge people's hard work. You know, obviously we have our Elections Division. Staffing changes, so their needs change. But I would like to point out that again we had secure and accessible elections with accurate results. No easy feat. But they did a Page 289 FC-8 April 18,2019 phenomenal job, our team did. But I'm not surprised, they amount of experience they have and the success level that our team has had conducting elections. Their preparation is exceptional, and they can adjust when dynamic events happen. A testament to leadership of that division. I want to give some credit to our Council Services Division too, which is responsible for making sure that we hold our meetings; we have our agendas, our minutes; premeeting preparation during the meetings with staff, and then posting meeting minutes and reports of that nature. But specifically, I really want to recognize the efforts that they all made in transitioning to this Council term to make sure that we had the infrastructure in place so Council Members could move to different offices. Council Services people actually sacrificed their locations to make sure that people were where they were needed to be to do their best work. They made sure that new Council Members were ready to handle their duties as Committee Chairpersons and were ready to effectively function and perform meetings right off the get-go because it's all you experience. It's emerging learning. There's no time between when you're elected and sworn in to where you have to conduct business. So I want to give a lot of credit to our Council Services team for helping that transition. We put a lot of work into it, and there's a lot of careful thought and consideration. Support Services. One of the things that's really special about them is that they serve the entire County with their reprographic services and their inter- departmental mail and mailing services. A little extra information, and just to tell you how dedicated they are, when the Kilauea eruption occurred and there was a need to get information out to people on a daily basis, there was somebody at Support Services every morning when it was dark to make copies, prepare documents and information for people so that they could be safe and have the latest information. Every morning, every day, seven days a week, until that need wasn't there anymore. That is,just again, a testament to the dedication and what I believe is public service personified. I also recognize the growth of the district staff, the people that work for the Council Members. You know, I've been there before; that's where I started. I understand the opportunities and challenges of working with and for Council Members. And what I see is that we have a team of professionals. I can see that they're learning and they're embracing their craft, and that's good for you folks, that's good for all of us, and it's good for the people of our island. I also want to say that we have an excellent accounting and HR team. We have a new HR technician, and she has blended in seamlessly. Thank you, Prosecuting Attorney's Office, for training her so well and giving her an environment where she could succeed and be available to us, and just come in right off the bat and start working with our accountant as a strong team. I am sureI know that we Page 290 FC-8 April 18,2019 can rely on them for guidance for the years to come, and that gives me a great deal of confidence and things that I don't need to worry about so I can worry about other things. I want to mention you know, our Legislative Research Branch (LRB), they're always there for us. They're experts. They have probably—now we're getting up to close to 75 years of experience combined. But something special that they've been working on is working with our Charter Commission. Ms. Eoff is familiar with those duties. She did that at one point and time, too. We often talk story and reflect upon her experiences. It's been an extraordinary experience thus far. This all started about June of last year, so just before the start of this fiscal year. We've had the pleasure of working with this group of citizens who was tasked with reviewing the foundational document of our County, the County Charter. You know, LRB has answered the call of duty. They performed beyond expectations, but more importantly, it's the attitude and respect for the process that they bring. No task to big or small, always ready to go. We just did public hearings in Kohala, N5'51ehu, Honoka`a, Pahoa, Kona, and here in Hilo, all in a span of about nine days, and what a wonderful experience. And I firmly believe that we provided top-quality service and guidance to the Charter Commission. And in doing so, we've also built our capacity for the future, to better serve the Council and the County. So just at quick status report on the Charter Commission's work. The public hearings are complete. We're kind of heading down the homestretch, and soon the commission will be presenting the Council report of its proposals that will appear on the 2020 General Election ballot. The last thing I'd like to mention is the special project that we're working on, and LRB is providing assistance to Ms. Chow in particular, who you're all familiar with. Currently, there is a process underway, by where we're trying to look at consolidating our building, plumbing, electrical, and energy conservation codes of our County Code into a much more user-friendly regulatory framework. It's quite a task. It's very cumbersome. And like everything, the devil's and the details, so we have to be very careful and consider it. I don't want to say too much more about this because this would be bored business, and at some point it will come before you. But again, I want to recognize Ms. Chow, and also Mr. Neal Tanaka at DPW. They've been working together very well. I know Neal has been trying very hard, and he's been very supportive; and it's quite a process, they've been going to dedicating time every day to this. So those are some of the program highlights of the last fiscal year. Page 291 FC-8 April 18,2019 Those are the things that I wanted to touch on. Again, fairly "status-quo"budget. Although, I don't really not really fond of that term because it implies that you're happy where you're at. Again, we are heavy on human resources when it comes to our budget. And what is not status quo about that is we can invest in our human resources expectation for all of us around here every day, is that we know why we're here. We're here to serve the community, and our goal is to get better and better at that every day. And that is how I believe you build capacity, and you build infrastructure with people, when you have a department that is largely reliant on people to get the job done. So I open up the floor to Deputy Brown, if you want to share anything with you, otherwise we're available for any questions. CHR. DAVID: Deputy Brown, go ahead. Thank you. MR. BROWN: I don't have very much to say. Oh, this is Aaron Brown, Deputy County Clerk. I think Jon did a wonderful job of kind of explaining who we are, what we do. And it's been a very great experience in my short time here already. Just to springboard a little bit off of what he said. I just wanted to maybe talk about how we went about looking at the budget and, you know, Jon setting that direction of to get better every day and to examine everything we do to see if we can get—if we get just a little bit better every day,you know, over time we will have come a great ways. So when we looked at this budget, the fiscal teamI want to give a big thanks, too. I think we all came together and had many meetings. And just all of our staff, in general, being really hardworking and supportive. But the way we kind of approached the budget is we looked at a five-year historical analysis on every single line item. All the expenses, what are actually been spending? Why? What are we doing with the money? Is there a way to get better? Can we be more efficient? And so we looked at these things, and happy to announce that we did find areas where we could, you know we understand the fiscal challenges that every department faces, including ours. So we were able to sort of cut some of the OCE, I guess expenditures, where we may have been budgeting a little more than what we actually spent over that five-year historical analysis. However, you don't want to only look at history. You want to make sure we're also looking into the future, so we also considered you know, where are we going in the short, medium, and long term? We want to be forward-thinking. Like our County Clerk mentioned, we are in investing in very important infrastructure. One main of the main ones, being that ballot-sorting machine. It's a big piece of equipment. It's expensive. So to come at it from a standpoint of the machine itself can cost about a quarter million dollars ($250,000). And so we Page 292 FC-8 April 18,2019 don't want to have the County absorb that kind of expense one time, so we're looking to, you know, working with Finance. And we're looking to lease that piece of equipment to sort of smooth out the cashflow of that expense over five years, to make it a little more manageable. You know, no one budget year would get hit with a $250,000 increase so to speak. So that's one of financing mechanisms that we're looking at to sort of smooth that cashflow. We don't want to have that big increase in expenditure. You know, I think—looking at the things we're investing in, you know, like all the other departments are, S&W (Salaries and Wages) is 69.3 percent of our total budget. We face the same things where salaries and wages increase, you know, we have no control over that. You know, we're different than some of the other departments in that respect. But we're trying everything we can to be more efficient, more innovative, and of course long-term thinking. Total budget, $5.11 million, and the increase in the budget and in this proposed fiscal year over the current year is only a quarter of one percent higher, so we're pretty of that, on what we were able to do. Pretty straightforward You know, if you guys any more questions, I think we're happy to answer them. CHR. DAVID: Thank you very much. MR. HENRICKS: Before we hit that point, I did want to mention that making sure that we do things the right way, we were fortunate to be invitedI was not invited, but Mr. Brown was. And our Elections officials just went to Oahu to assist with these Special Election, and that gave us an opportunity to take a look at their ballot-sorting machine; get information from them, see how it works, and see if it's something that would work for us. And after the trip, it was brought to my attention that we're more convinced than ever that this something that is not a luxury. It would be like essentially operating without a cellphone at this point and time as a human being, if you can imagine. CHR. DAVID: Thank you very much, Mr. Clerk. Before I go to the Council Members, could I ask—Ms. Nakamoto, would you like to say anything, or did they cover everything? They covered everything. Okay,just wanted to ask you; and hi, Cori. Alright, Council Members, questions? Oh, Ms. Poindexter, go ahead. Sorry. MS. POINDEXTER: I was looking at the budget, and being at HSAC, and I know Ashley is going to take over from July, and that seems kind of low, I don't know, on the meetings on Oahu. And then I was looking at the HSAC conference, because usually the HSAC we have a budget over there, and what happens is the host county has a special bank account that uses the HSAC money, and then they use that checking account to help prepare for that conference. So I would check into that before we come to our final budget. And I'd look into that, as well. Because Maui is the host county this year, and so they're taking control Page 293 FC-8 April 18,2019 of the special conference bank account that is with HSAC money. So you might be able to shift that around. Thanks. CHR. DAVID: Thank you, Ms. Poindexter. Mr. Richards, go ahead. MR. RICHARDS: Thank you, Chair; and thanks, Jon and Aaron, for coming before us. Couple of questions. First of all, on the Elections. On the paper they talk about a potential Special Election for the Charter. Is that cost reflected in this budget? MR. HENRICKS: No, it is not. That discussion or idea wasn't contemplated when we looked at this budget. We do have an agenda item for discussion at the next Charter Commission meeting. I don't anticipate a Special Election at this point and time, although it is within the Commission's purview to call one. But I don't anticipate one at this point and time. MR. RICHARDS: And just for us, what would that cost of that be? MR. HENRICKS: When we looked at an analysis, which was really detailed, our Election Administrator was ablea very detailed analysis, it was roughly $450,000, That's a rough estimate. MR. RICHARDS: Yeah, big number guy. MR. HENRICKS: Although with a lot of itemizations, though. It wasn't a broad you did a great job of breaking down all of the potential costs. MR. RICHARDS: Okay. So roughly half million ($500,000) if we decide to do that. Okay. Alright, other question I have. Jon, am I reading this right, 4.5 million copies? MR. HENRICKS: That will be a projection for next year. I think it was closer to 3.65 this year, as far as our program measures. MR. RICHARDS: Didn't we at one-point talk about— MR. boutMR. HENRICKS: 3.7 actual. MR. RICHARDS: Yeah, for this year. MR. HENRICKS: Yeah. MR. RICHARDS: Didn't we talk about it one time of trying to go electronic? I just I float that out. MR. HENRICKS: Sure. Page 294 FC-8 April 18,2019 MR. RICHARDS: Because it's a lot of trees. MR. HENRICKS: A lot of ink. MR. RICHARDS: A lot of ink. MR. HENRICKS: Yeah, and a lot of paper. MR. RICHARDS: A lot of paper. MR. HENRICKS: And everything that comes along with it. MR. RICHARDS: Yeah. So, alright. Thank you, I yield. MR. HENRICKS: Thank you. CHR. DAVID: Thank you, Mr. Richards. Mr. Kaneali`i-Kleinfelder, go ahead. MR. KANEALI`I-KLEINFELDER: Hello, gentlemen. MR. HENRICKS: Good afternoon. MR. KANEALI`I-KLEINFELDER: Good to see you guys on that side of the table. It's kind of funny. MR. HENRICKS: It feels wonderful. MR. KANEALI`I-KLEINFELDER: I just want to say thank you for everything you've done to help us, and that you do every day, and all the staff. I didn't realize how many people go into helping achieve what we try to do every day, not just Council but everyone. From the paperwork to the meetings, to the television. It's bigger than I thought it was. So I appreciate everything you do to put that together. As far as the budget, I did notice postage for Council Services we used 23 percent were allotted in our budget this year. MR. HENRICKS: We just made a large—how the postage works is we have a machine. We actually put deposits into it, yeah. And we just made a large deposit into that. Generally we will use the bulk of that amount; and what happens is that it covers postage essentially for the entire County. It's not just for this office. And that can cover a wide range of things. And at times you know, it's a figure that covers the postage for the County as a whole. So some of that money will come back. Say, you know, Real Property Tax does the mail out, they'll go ahead and reimburse us. So essentially, it's just creating that appropriation that then comes back in from different departments. Page 295 FC-8 April 18,2019 They have their own postage allotments in their budget. So, it's for the entire County that we get reimbursed for, so to speak, from different agencies, when they do large mailouts, priority items, things of that nature. MR. KANEALI`I-KLEINFELDER: Okay, thank you. I was trying to increase our Contingency Relief Funds, but that sounds like there's no extra there. Thank you, Jon, appreciate it. Thank you, Aaron. MR. HENRICKS: Our pleasure. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. Don't give up yet. Ms. Eoff. MS. EOFF: Thank you. Basically I just wanted to say that this was a really good breakdown for all of us. MR. HENRICKS: Thank you. MS. EOFF: To understand all the different functions and the costs associated. And I know it's a frugal budget, you know, you haven't asked for any big increase or anything. So good job. And I just wanted to remark that what you said earlier is probably the most important aspect of the Legislative Branch, and that is that sense of a family, and that everybody's job is dependent on everybody else doing their job. So I just wanted to say that I think that the Legislative Branch is functioning really, really well. And I appreciate the leadership that you folks have provided. Like you were saying earlier, all the Council Members' staff, and LRB, and all of the Civil Service staff. This is just a chance to say thank you I guess to my own staff and all the people in the West Hawaii Civic Center. Because everybody is really, really, very aware of their role, and what they do does help all of us do our job as well as we can. You mentioned that I helped with Charter Commission one year, but even prior to that, I mean coming in as an assistant to a prior Councilman, I mean it's really amazing how much work goes into all that we do and being able to assist the public and having everybody be able to direct everybody to where were they need to get their answers. I just think it's been a wonderful experience personally, and I think everybody is experiencing that right now in our roles. But thank you for helping us with that. I think your prior work in a different capacity probably prepared you really well to take on the job of our County Clerk, too. MR. HENRICKS: I hope so. MS. EOFF: So thank you, Jon and Aaron. Page 296 FC-8 April 18,2019 MR. HENRICKS: Thank you for that. CHR. DAVID: Thank you, Ms. Eoff. Go ahead, Ms. Lee Loy. MS. LEE LOY: Yeah, thank you, Chair. Thank you, guys. Great looking shirts. I too want to just express my gratitude to both of you. I do want to say what a wonderful asset Aaron has brought to this office; the skillsets and just understanding of what we do here as policymaking body but the inner workings of the administration from the skill set that you had at the Department of Public Works. So thank you so much for all of that. And I do, too, also appreciate the Legislative Review Branch. They have been phenomenal as far as work product coming out of that particular office. I know personally they have stood up a number of policies for me my last term, and I'm confident that those will stand the test of time and then can further developed upon. And without getting too far on-board business, I'm also really excited about the Admin. Code and some of the changes that will come forward from Leslie and Mr. Neal Tanaka. I think that actually become a model for some of the bigger Code amendments, which I'm hoping for. Which will be Chapter 25, which is our Zoning Code amendments, and then Chapter 27 (sic), which is our Subdivision Code. So I'm really looking forward of doing the heavy lifting. And I know last year and then into this year was the short-term vacation rental bill. But this, by far, the adjustment with the Admin. Code, and the Electrical Code, and the Building Code will be the largest policy lift that this body or any previous body I would say maybe within the last 15 years, will ever see. So I'm really excited about bringing that forward and getting into the rumble with that. Again, thank you guys so much for making us look good so that our constituents get work product that they can be proud of. Thank you, I yield. CHR. DAVID: Thank you, Ms. Lee Loy. Go ahead, Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. You're wondering, she hasn't said anything. I just wanted to take this opportunity to express heartfelt gratitude. I've spent a lot of time with you folks, and I feel that I've been able to rock and roll because of good and solid advice on how to approach being a Council Member. And I feel—my team and I felt very supported by every single person, in Council Services, Support Services, every single aspect of LRB. Every single person here has made us feel like we are part of the County `ohana. And so I am very grateful to be part of this family. We've only been here for four months, but I hope that we're here much longer than that because there's a lot of good work to do, and I feel really confident doing it with the team that we have. So, thank you. Page 297 FC-8 April 18,2019 CHR. DAVID: Thank you, Ms. Kierkiewicz. Seeing no one else, no lights on, then it's my turn. MR. HENRICKS: Here it comes. CHR. DAVID: Get ready. No, no crying today. We're dealing with money, so let's get serious. Jon, Aaron, Pat, and I'm so sorry MR. HENRICKS: Cori. CHR. DAVID: Cori. It's been a long few days, but so many things to say, so many things on my mind. But what I really want to say, Jon, is that every person—we've worked together so long, Karen, me, and you. We've started from where most people start, with Council Members. So the learning curve for this job, for anybody that takes this job, is very, very high, and so I appreciate everything that everyone has done or is doing. And I really would like to the only difference I see, and I really would like to say thank you, but I don't see our people here, you know, our staff. And everyone brings there staff so, "Hey guys out there: LRB, Council Services, and everyone, thank you so much." I tell you it's likeI want to take a recess, but that's okay I won't. But I really want to express my thank you to them because they are who make us who we are today, and under your direction, everything that we do is because of them. And a shout-out to the Kona crew. They're the best working crew I've worked with, second to this. No, them first and then our bigger `ohana on this side. So I just wanted to say thank you to everybody. Machine Room, who I hardly see anymore, but yeah, they do a lot. So just wanted to say thank you on behalf of this body to all of them and you folks. Aloha. MR. HENRICKS: Closing remarks? CHR. DAVID: Sure. MR. HENRICKS: I just would like to extend that thank to our friends and family in West Hawaii Civic Center and the Kona Council for helping with the Charter Commission, too. CHR. DAVID: Yeah, thank you. Exactly. MR. HENRICKS: Scott and Wendy, and Davelyn and everybody. And also, thank you, Ms. Poindexter, for bringing that forward. We will definitely, you know, dig deep into that and find out what our options are and do whatever we Page 298 FC-8 April 18,2019 can to make it the easiest process possible. Also, ensuring that we have the resources we need to put on the best HSAC Conference there has ever been. CHR. DAVID: Alright, I can't wait. So on that note, gentlemen, thank you. MR. HENRICKS: We appreciate it. CHR. DAVID: Pat, Cory, thank you so much. And do we need a recess, guys? No? Mr. Kucharski, I hope you're ready. You're up. Thank you. (7) Department of Environmental Mana eg ment: CHR. DAVID: Well, Director Kucharski, welcome. You are the last on our agenda today. Would you like to come up here too, Greg? Please do. (Note: At this time, Environmental Management Director Bill Kucharski and Solid Waste Division Chief Greg Goodale came forward to address the members of the Committee.) CHR. DAVID: So go ahead, Mr. Kucharski. Proceed with your presentation. MR. KUCHARSKI: Okay. Thank you. Thanks the Council for allowing us to come in and present parts of our budget, or all of the budget. What I've attempted to do with this slide presentation is hit some of the highlights, sort of condense the 100 pages down to a few slides to sort of get the flavor of our budget. One thing about DEM is that DEM is almost fully an operating company. We have two operating divisions, which is handling all of the solid waste, which is a 365 day a year job, and wastewater treatment which is another 365 day a year job. So what we have is a little bit different than some of the other departments, at least in my opinion. I'm going to come up with just a few major points that are thrown out and break down some of the major costs. (Note: At this time, Ms. Kucharski provided a PowerPoint presentation to the members of the Committee. For viewing of the subject presentation, please see the DVD copy of the meeting proceedings on file in the Clerk's Office. A hard copy of the presentation is made a part of the record, see Comm. 117.13.) MR. KUCHARSKI: I thank you, and open for questions. CHR. DAVID: Thank you, Director. Mr. Goodale, would you like to give us a little briefing on solid waste or did the Director take care of that for you? Page 299 FC-8 April 18,2019 MR. GOODALL Greg Goodale, Solid Waste Division Chief. I think our Director gave us a good synopsis. Obviously, we have plenty of challenges to get through and I'm sure we'll have some questions. CHR. DAVID: Thank you very much. Alright, Council Members, questions. Who's first? Mr. Richards, go ahead. MR. RICHARDS: I can't let Mr. Kucharski get all dressed up for the dance and not ask him questions. First of all, again thanks for being here, Bill. As you said, and we've had very long conversations about all this stuff, nothing is easy here. And as our population grows, it gets a bit more complicated when things are changed. The wastewater, can you comment on what's going on with N5'51ehu, Ka`u, what's going on there, and what your thoughts are where we're going to be headed in next in the couple two, three, four years? MR. KUCHARSKI: Thank you. Even without the question, I've learned to live with disappointment, so I could've withstood that. MR. RICHARDS: I'll try to remember that next time. MR. KUCHARSKI: We are under an Administration Order of Consent from EPA (Environmental Protection Agency) to close large capacity cesspools that are in the community, it's in N5'51ehu and Pahala. These systems were both gifted to the County by C. Brewer when they ceased operations back in 2005 or 2006. They handed over the systems to the County in 2010. Since that time, we have been looking for sites to put in new facilities. The original thought of what we could do there changed when engineeringly we could not put in a large capacity sceptic tank as we preliminarily thought. The other thing that did was that would simply take care of the minimum of amount of the community, and part of the CDP for Ka`u is to sewer where we can. And so we were putting in larger sewer treatment plants; they are proposing to at least. All I can say on that, is that we need to properly take care of this wastewater that is being generated by the communities, and the sooner we do that, the better for the environment and in my opinion, the less it will cost. The longer we delay, the more expensive these systems seem to become. But other than saying we are required by Federal Agency to close these cesspools by 2021 and 2022. That's what we're trying to do. MR. RICHARDS: Again, you and I have discussed this, but for the record, the funding for all of this stuff. Can you articulate on that, please? Page 300 FC-8 April 18,2019 MR. KUCHARSKI: Yes, sir. The funding will be—there is a small $1.8 million grant from EPA, that was going to be used to help at Pahala. That grant has been around since I think 2012, and we have a requirement to utilize those funds in the next two years or lose them, so we are pressing. For N5'51ehu, there is no grant money that we have found to date available for that. There are some grants that we might be able to get from the Bureau of Reclamation if we were doing recycling water, but that's something that—we're pursuing that for R-1 system at Kealakehe, but we're not—we're just simply the big grants for sewer systems, the County I think is about 20 years, 25 years late on those. The big monies, the billion-dollar grants were earlier. I mean, the Hilo Treatment Plant was covered by an EPA grant, the majority of that cost. But I don't see those grants being available. They are loans, and we are utilizing the SRF (State Revolving Fund) funds to fund these construction projects, but that's—other than a low interest rate, that's the only grant that's available for us that I'm aware of. MR. RICHARDS: Okay. And as far as a timeline to get Ka`u pau, Pahala and N5'51ehu? MR. KUCHARSKI: We have an Administrative Order of Consent that requires that the large capacity cesspools be closed in 2021 and 2022; that's 2021 for Pahala, and 2022 for N5'51ehu. I will we say that we are running into some issues that are not related directly to our efforts, but a State issue on review of EIS (Environmental Impact Statement) and cultural documents by the State by SHPD (State Historic Preservation Division), and we may wind up with some delays on that, but we're going to be working for that. Those things are not in our control. Those things that are in our control, we are managing and are on schedule to make those closure dates, as required by our Administrative Order of Consent. MR. RICHARDS: And as far as the funding you've identified, loans available, are these secured for going forward to get this actually done or are we in that process of securing those? MR. KUCHARSKI: We have assurances with, not documented assurances, but the SRF funding would be available for these facilities to fund the construction. I do not—we have not made a direct application that I'm aware of for all of the funding. But our CIP (Capital Improvement Project) budget shows we have about$43 million coming up for N5'51ehu and Pahala. Our CIP budget for Pahala is $21 million, with a total of$38 million set for that; and for N5'51ehu, we're setting up here and looking at$46 million for the 2021 CIP budget. MR. RICHARDS: Okay. Page 301 FC-8 April 18,2019 MR. KUCHARSKI: They are on the horizon; it's too early for us. We don't have the EA (Environmental Assessment) done for either of those. The EA has been completed for Pahala. We're waiting for the response to come and set sort of a joint document with EPA, and then we have Section 106 reviews that have to come back from the State. And that's part of the issue that are holding this up. MR. RICHARDS: Okay, thank you. I see Deanna is in the room. Is there anything, Deanna, you would need to add to the comments that have been made by Environmental Management? (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: All I was going to add is, you know,when we talked about debt service the other day, you know, we did say we took into account many of the SRF loans that are coming up, but kind of whatever we know about. They're pretty good about keeping us informed, so we'll just continue to do that going forward, because we know they have some big-ticket items coming up. MR. RICHARDS: Okay, so you're aware of the numbers coming forth and you've looked at that, and our carrying our debt load going forward and debt repayment? MS. SAKO: And, you know, we continue to like using SRF because they by far have lowest interest rate. We can't beat it anywhere else on the market. So you know, we like those, and we're glad that the State has set aside monies for us. MR. RICHARDS: And just as a comment, interest rate being? It's probably MS. SAKO: Half percent. MR. RICHARDS: Half percent money, okay. Alright. Thanks, Deanna. Thank you, Bill, that's all for my questions for right now. Chair, I yield. CHR. DAVID: Thank you, Mr. Richards. Anyone else? Mr. Kaneali`i-Kleinfelder, go ahead. MR. KANEALI`I-KLEINFELDER: Good afternoon, sir. MR. KUCHARSKI: Good afternoon, sir. MR. KANEALI`I-KLEINFELDER: Good to see you. I just had a question about the Vehicle Disposal Fund. MR. KUCHARSKI: Yes, sir. Page 302 FC-8 April 18,2019 MR. KANEALI`I-KLEINFELDER: That's you guys, yeah? MR. KUCHARSKI: Yes. MR. KANEALI`I-KLEINFELDER: So I noticed that to date this year we've only used 34.29 percent, well, as of February 28h. And I `ve been watching this and I'm just wondering if we're putting too much money into this account because we're not actually using it all. Or am I mistaken. MR. KUCHARSKI: I would, again this is Bill Kucharski DEM. MS. SAKO: Actually, I like that fund because it's not one of the few that's not General Fund subsidized. That has a specific fee from everyone's vehicle registration that goes into that fund, and the only thing we're allowed to use it for is vehicle disposal. MR. KANEALI`I-KLEINFELDER: Yes. MS. SAKO: So some years they spend more than others. Bill can explain that part of it. But even if they're not fully utilizing it, it has to remain in that fund, so it would just build the fund balance until they had a need. But they do have needs for it, and I know Bill is going to tell you about it. MR. KUCHARSKI: Yeah, we are doing—we're going to have an amnesty program. We did this last September, we're doing another one this fall, to come and collect vehicles that are not abandoned, and it's actually going on as we speak. But one of the things—we tow about over 1,000 vehicles a year from the island, some 1,200 or so. And the fund can go up and down, depending on scrap price. We had a low scrapping price and we had excess in the fund. And then we jumped up to the scrap price dropped, and our cost increased significantly. So because we have fewer funds, where we've utilized fewer funds today, tomorrow on our next bid our disposal cost could double or triple. We have no control over that with a limited numbers of bidders particularly for that kind of market. While we watch that, if we see a trend for several years, that may be something that we can look at. But we tend to try and do more when we—and because we have the money there, we tend to do more. And we don't hesitate to go out and get these vehicles and get them removed quicker with more contracts and pressing in on our vendors. Not that we're wasting money, but we will spend more of the money if we have to, and that gives us the ability to do that. So the fact that it's low this year does not mean it's not going to double in the last half of this year or next year. Page 303 FC-8 April 18,2019 MR. KANEALI`I-KLEINFELDER: Yeah, if it starts to trend like that, then we're just—maybe we're putting in too much money, and if we took too much in the beginning, then we should take that back off on that and let people save, even if it's couple bucks every year, and get it. But still, this doesn't—if we shouldn't take it, then we shouldn't take it. MR. KUCHARSKI: Noted. MR. KANEALI`I-KLEINFELDER: Yeah, andsorry, I'm still looking. Oh yeah, thank you. I yield. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. Anyone else down the road? Sure, go ahead. Go ahead, Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. Hi, Bill. Good to see you. I appreciate you and your staff, making yourself so available. Seeing you a lot over the last few weeks. Just a couple of things I wanted to get on the record, because we talked about some interesting topics. The first one is, you know, we've got this polystyrene ban coming up, due for implementation over the summer, and I just get a little concerned because the alternatives are compostable materials and recyclable plastics. But the concern I have is we're not expected to have a compost facility until next summer. But even with that, I don't see the connection we're making between end of use of these compostable products, and how they're going to make their way to the compost facility. So just wondering where is that feedstock going to becoming from and what are some things that your department is doing in partnership with potential contractor for the compost facility to devise a way to capture those materials and bring them to the respective facilities they need to be in? MR. KUCHARSKI: Bill Kucharski. We are right now working to get the contractor to complete design so that we can get that out to bid and have the compost facility constructed. We've just finished the EA there. I think we're getting a little pressed on time, but we're still moving to have that facility completed by July 1 of next year, which is the contracted date. How we get this material to—organic material, compostable materials, to the contractor, sort of in the contract is it's the responsibility of the contractor. We can't force material on him. Is that correct? MR. GOODALL Greg Goodale, Solid Waste Division Chief,just to chime in. The way we're kind of structured right now is really more of an incentive for folks that if they are generating that type of compostable waste, the rates that we give anybody that's generating that type of waste, which compostable material would be considered organic, so it's a 75 percent discount from our tipping fee. Page 304 FC-8 April 18,2019 So any restaurant, any facility that's utilizing that type of material would be able to keep that material segregated and send it at a lower cost. So that's kind of where the incentive comes in, is that you have that price that's much lower for disposal of that type of material. So it incentivizes that, you know, it's going to go to a facility like that and not just end up at the landfill. I mean, obviously the desired outcome is that it's not getting scattered alongside the roadways. But from the standpoint of it going to a compost facility, is really kind of at the price that would make that more attractive. Now, as the Director said, our contractor has a large component within their contract that requires them to do a lot of marketing and outreach to get the customers to bring material to the facility, especially when it's completed for acceptance of all the organic materials. Right now we're just taking the greenwaste, but once the compost facility is open, we will have the ability to take a much wider span of materials. But as I said before, it's really the cost, that's the driving factor in encouraging people to divert that material. MS. KIERKIEWICZ: Anything to add? No? MR. KUCHARSKI: I think it's going to be difficult to change people's attitudes and to have them do something different. And I think it's incumbent upon us and DEM to try and figure out how to manage that change, and encourage that change, and to do things that make sense for everybody, and have a positive outcome. I don't know exactly what that is, but we're looking and thinking about that, and we'll be trying to pursue some alternatives to just push ourselves forward on being able to really utilize all of the organics that are in the waste stream. MS. KIERKIEWICZ: Thank you. I appreciate your approach, your strategy to use more carrots than sticks in this situation. I hope that we're looking at other jurisdictions because I'm sure we're not the first to make these sorts of transitions, and I'm sure they figured out ways to work with restaurants and other food service entities to capture that sort of biodegradable compostable material and get it to those facilities, and so I know you're working on that. The second and last question that I had, and I feel that you really perked up when I mentioned this, was how we can start getting DEM to budget for outcomes. It's difficult to talk about because it's so expensive, but I fear that the alternative is cheaper and we're not really in a pinch just yet. We don't really want to have those conversations about how we can transition to just being more efficient and effective with handling our waste streams and being more innovative and thinking about value-added products that we can start creating for ourselves. I was hoping you could elaborate on that a little bit for my colleagues. Page 305 FC-8 April 18,2019 MR. KUCHARSKI: Thank you. We are—of course there are two parts to this. One is the wastewater, and how we deal with that. And when we're talking about big, big-ticket items, that is the infrastructure cost that is going to dwarf the other activities as far as waste management. The solid waste side is a little bit simpler, but it's also more complex. I mean, because solid waste requires the public to be part of the solution. Wastewater, it's just giving the facilities there and it's flush and go, and they're pau. That's the contribution. And so it's much more expensive but that is probably the easiest one to do. Solid Waste is different because people generate it, they carry it, they take it somewhere, they have to sort or they don't have to sort; and all of these fundamental changes are never easily managed. And we are looking at things. For instance, on plastics, is there a way that we can take instead of one and two, we can take any plastic? Turn it into some kind of useable product or if nothing else just make it so it's a lot cheaper to ship to Honolulu. I mean, those are the kinds of things that we're looking at. When we take a look at the individual pieces of the waste stream. Our Recycle Program cost us about$150 a ton to process that. Part of that is because of the way we collect it, that where people can put into a mixed bin what they put into mixed waste bin. It doesn't have to be cleaned. It should be cleaned, but it's sort of a voluntary program. So the solid waste is much harder to process but it's something that can be done with, I think, less money. And so we Ying and Yang as far as solution. They're just totally different, one from the other. But they all down come to how are we going to prioritize what the County spends, and then how we manage those resources or waste products once we get them. And I can't give you any answer other than we look at things like that but looking and doing are not the same. MS. KIERKIEWICZ: I'm glad that you're at least bringing it out into the forefront for us to consider. I mean, it's probably not doable in this budget, but it's something for us to start thinking about. I mean, we live on an island, and so we need to be innovative about how we manage our waste stream now and into the future, because we want to make sure that we have a beautiful place for our kids to live and play. So thank you for your time. I mean, your department has a special place in my heart because I interned there for a couple of years in college. So I know there's a lot of work behind the scenes by folks there to keep our island clean. So thanks for being here. Thank you, everyone. Chair, I yield. CHR. DAVID: Thank you, Ms. Kierkiewicz. Mr. Richards, go ahead. Page 306 FC-8 April 18,2019 MR. RICHARDS: Thank you, Chair; thank you, Bill; and thank you, Ms. Kierkiewicz. This brings and highlights that during our budget, this is also our program review conversation. And since we have no real way for venue of discussing this coming forward, this allows us to discuss this coming forward. Mr. Kaneali`i-Kleinfelder and I have broached this subject, as my Vice Chair for the Environmental Management, and Bill and I have had long conversations about this, and he touched on it. I just wanted to echo of what you have raised a question on. What we're talking about is a true paradigm shift when it comes to how we're viewing our waste management, both solid as well as the sewage. And help me out here, Bill. As I recall, the infrastructure, I think the first blush of infrastructure for Wastewater Management, was somewhere between $750 million and $1 billion if we are truly going to make a big impact island-wide. Is that the number? Am I correct? MR. KUCHARSKI: Right. Sure. I think if we were to sewer most of Kona and the rest of Hilo, we'll be in the $700 to $800 million. That isn't a number that I have studied to verify. That's just a gut feeling. MR. RICHARDS: Okay. So it puts it in context for our conversation. We talked about the solid waste, and everybody weigh in on this one, we're talking about somewhere around 600 tons a day going into our waste of our solid waste, is that number I recall correctly? MR. KUCHARSKI: Right about. Maybe 800. MR. RICHARDS: Okay, so MR. KUCHARSKI: But same order magnitude. MR. RICHARDS: Okay. Yeah, so we're in the ballpark. And something that Bill has mentioned, Environmental Management has mentioned, that if we are able to take out the biologicals out of that, roughly speaking about half of our solid waste, if we do that, we are going to double the life expectancy of our landfills because we're reducing what's going in by half. But in order to do that, we have to have a way of sorting that waste stream. And so, these are the exact conversations that Environmental Management is having now, Ms. Kierkiewicz, and actually Council. Because we're not trying to figure out this year's budget, we're trying to figure out two decades from now's problem. It's going to take committing resources towards that. And I think when we had the conversation about sewage fees, yes, we have the short-term; but the long-term is how do we start looking at financing for the County as a whole, which is going to be committing a lot of resources going forward. Page 307 FC-8 April 18,2019 So with that, we're not going to belabor the point. But the point is we are having these conversations now, in trying to figure where we're going to go, because again, it's going to take that shift. As Bill has pointed out, we are voluntary right now as far as our sorting, but we have problems with our recycling for a lot of different reasons. And in order to make this shift, we are going to have to have a shift to paradigm with our people, as well as our programs. So that's what we're talking about going forward. So with that, I yield, Chair. CHR. DAVID: Thank you, Mr. Richards. Anyone else? Mr. Kaneali`i-Kleinfelder, go ahead. MR. KANEALI`I-KLEINFELDER: I just have one question for Greg. You said we're going to charge the—did you say the restaurants and the businesses to dispose of their compostable products, or did I mishear you? MR. GOODALE: So they're going to have disposal regardless. MR. KANEALI`I-KLEINFELDER: Like regular trash disposal? MR. GOODALE: Correct. So any business has component of waste disposal built into their business cost. But when it comes to something like a restaurant or, you know, the ones that looked at being specifically impacted by the polystyrene changes, when we went out and looked into, as Council Woman brought up earlier about looking at some other jurisdictions, we did that as part of our development of our Request for Proposals for the compost program. And one of the jurisdictions that we looked at was the City of Seattle. City of Seattle essentially required that all materials become compostable for restaurants and those types of establishments. So when a restaurant like that essentially accepts those materials for disposal, it's all materials that are going to go to a compost facility. The waste food, the materials that people get their food on, as well as, you know, even the cutlery and whatnot. So when I talk about that, the expansion of our program offers up is an alternative to normal landfill disposal. You'd be able to take that type of material and dispose of it separately, essentially segregate it, into a compostable bin, but that's also going to require, you know, the hauling entities to offer that service, you know, because it will be at a lower cost. I mean, we see that already. We see people making use of our greenwaste facilities because it's a lower cost than bringing it to the landfill and paying that higher tipping fee. So that's where the incentive comes in. MR. KANEALI`I-KLEINFELDER: Okay. So my only problem is, as the restaurant, I'm not going to be using and throwing away the compostable goods. It's the person taking it home, not me. Page 308 FC-8 April 18,2019 MR. GOODALL And that's where it gets more complicated. Now as a restaurant you can control it for what's eaten there at their establishment, they can control it there, as the, you know, the restaurant itself. But once a person takes it home, then it becomes, okay, it's like anything else. A person is going to manage their waste as an individual. So we're already looking at ways at our various transfer stations, of being able to offer that type of disposal option, which would be basically akin to our recycling system. But again as the Director brought up, it's all voluntary at this point, so there's no mandatory usage of that. So some of this may end up in the waste stream, the landfill waste stream on its own. MR. KANEALI`I-KLEINFELDER: It already is. MR. GOODALL But for us, we will be trying to establish ways for people to utilize those alternatives, the same way as we do our two-bin recycling program. So the options are there, it's just a matter of trying to work with the public and encourage them to make use of them. MR. KANEALI`I-KLEINFELDER: I guess, I just heard like an illogical problem, which was the restaurant itself will not be disposing of or maintaining a large stock of compostable rubbish behind the restaurant because it won't be going there, it would be going in a paper bag home with the customer. MR. GOODALL And I don't have statistics as to what percentage of any of those establishments, if people eat the meal at the establishment versus how many take it home. But we know,just in terms of some of the evaluation we did prior to, there was a significant number of folks that did eat at the restaurant, which then concentrated that type of waste within the restaurant itself, as opposed to all of it. So I couldn't tell whether it was 50/50 or 60/40, but we do know that significant amount of it does stay there at those establishments. But it is still the challenge of the folks that take it home, then it's out of their control. MR. KANEALI`I-KLEINFELDER: Yeah, it's more maybe a focus on education like you were saying, to the public to make them aware of how they need to handle their garbage. And it's not—we talked about that before. That caught my attention, sorry. Thank you. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. Mr. Richards. MR. RICHARDS: Yeah, thank you, Chair. I know the day is long, the week is long. But, Bill, you touched on something, and I wanted to expand on it. The overtime on your division. And one point—almost 1.2—am I reading that correctly? $1.2 million of overtime for Solid Waste? MR. KUCHARSKI: Yes, sir. Page 309 FC-8 April 18,2019 MR. RICHARDS: Please explain. MR. KUCHARSKI: We have a lot of areas that need to be covered with 22 you know, two landfills, 22 additional transfer stations. And it doesn't take many people calling in sick to have one, or two, or three people a day out of 60. Pretty soon these things add up. As you can see, it's about ten percent of the whole salary and wage budget is in overtime. And so the County is very good to its employees. MR. GOODALL If I can just expand on that. One of the things that we look at, as our division, is as Bill said, we have 22 facilities that we have to keep open. Not every one of them are open every day. The landfills are open every day, but by permit we're required to have a certain amount of staff at each of these facilities. Unlike other operations, if someone doesn't come to work, we are obligated to have someone come replace that person, and most of those are what we consider our callbacks, are overtime. So if someone you know, the County gives a significant number of sick days and vacations per year, which we're obligated to allow for. But even on those, when someone has a vacation or has a sick day, we are obligated to have someone there in their place, which means calling somebody back. So even if we try and plan ahead for that, especially as it pertains to say vacation, which we do, we schedule those things ahead, but we still are bringing a person back that is getting paid on an overtime rate. We don't have a staffing level that essentially has folks in reserve. We have the staffing we need to do the job we do, but when it comes to someone coming back to perform that job, essentially to keep us in our operating permits with the State—and those are things that the State does keep an eye on when they go out to visit our facilities, that we are operating within compliance of those permits, which requires us to have personnel at the site during the open hours. But I guess the most significant part of that, that I think the Director was alluding to is just to keep those facilities open oftentimes—and it could be up to 50 percent of the labor on any given day, may be coming back as overtime. MR. RICHARDS: So is that because we are understaffed? MR. GOODALL That's a long conversation. But staffing, as you look at how we have our facilities staffed, we have the appropriate number of staff to keep our facilities open; but if we start running into significant amounts of, you know, sick or unplanned vacation, compensatory time off, those things start to stack up. So that's where the magic number comes in, is to what is that appropriate number to not have to call back, but essentially not have to have that additional number. Because no matter how many more you bring in, they're also going to also have that CTO (Compensatory Time Off), vacation, and sick days that we have to account for, as Page 310 FC-8 April 18,2019 well. So that is kind of the, I guess, the question that we struggle to find the answer to—regularly is, what is that number? We believe right now—I mean, we as a division didn't, you know, request as part of just normal operations. We have other positions that we've been trying to get on board. But just in terms of keeping the facilities open, we didn't make any additional requests. But we are looking at various ways of trying to accomplish that and reduce those overtime costs. MR. RICHARDS: Okay. Chair, in interest of saving some time, what I think I'd like to do, is I'm going to make a request to Environmental Management. And I'll get together with my Vice. We'll talk story about the questions. And the questions I'll pose to you, Bill, and then when you respond,just—so we can get the information back, I'd like to know somea little bit more detail on the overtime. Because that one if we're going to approve, that's a lot of overtime, so I'd like to examine that more. So with that, I'll yield. CHR. DAVID: Thank you, Mr. Richards, and I think that's a great suggestion. Anyone else before I ? No? Alright, I just have one question. Where did Deanna go? Oh, there she is. Okay before she comes in—she's on the phone. Chief Goodale, could you just give us a status on the new HOVE(Hawaiian Ocean View Estates) transfer station? How soon? MR. GOODALL I would love to give you status. CHR. DAVID: Thank you. MR. GOODALL No, that's a great question. And this has been a facility in Hawaiian Ocean View Estates that we have been long wanting to make some improvements. We've met regularly with folks in that district, and I'm happy to say that we have the project well under way, that will get us to the point of at least offering the service that we're offering now in the location that the County purchased several years ago. We are also in the process of working with our design contractors to get the next phase of that site developed so that we can have a more built out site for that area. But we are very happy with the amount of progress that our contractor has been making. As I, you know, had communicated to the community there on many occasions, the biggest portion of that work was the work on the highway. CHR. DAVID: Yes. MR. GOODALL And the majority of that has been completed. They're actually getting ready to pave. But the long of the short of it is they are going to have a much better facility and it won't be located in the private subdivision any longer. Page 311 FC-8 April 18,2019 And then we are very optimistic that we'll be able to move into the next phase really quickly after that. CHR. DAVID: So estimate, when do you anticipate closing down the transfer that's located in the residential area now? MR. GOODALL We expect to be out of that by July. CHR. DAVID: Really? Well, that's good news. Thank you. And yeah, thank you. MR. GOODALL And we're also making headway on our Wai`ohinu projects, as well. CHR. DAVID: Perfect. So by the time all that's done, I think everybody will be happy. They'll have a new transfer station. And thank you very much. We waited a long time for that one. And before we close, I have to ask Deanna a question. Because there was community input this morning on some concerns, about the cost of Director Kucharski's two huge sewage treatment plant projects. Deanna, could you just explain how the capital funding with this project, because it's been ongoing for way before Mr. Kucharski got here, and for years. How is the funding and the lapsing work for these big projects? MS. SAKO: I know it can be confusing when a project takes place over several years. CHR. DAVID: It is. MS. SAKO: But one thing to keep in mind is that each of the capital projects, when it's approved by you guys, it's for two full fiscal years after the year it's appropriated. So really for three years, basically. So even though the current capital budget may not look like there's enough appropriations, the department does track to ensure that there's going to be enough appropriations. And sometimes we come in for mid-year appropriations, and it depends on the funding source, as well. So if they're going to come in to do like SRF (State Revolving Fund) funding, you know, we'll do the appropriation at the same time. But there are appropriations from previous years that are still active. And if they do find themselves short, we'll add additional appropriations. But it doesn't mean the projects not going to happen just because someone may not see in the budget. CHR. DAVID: Right. I see. Okay yes, I think we that we just needed some clarification on that. And I see Director ready to press his button, so go ahead. Thank you, Director Sako. Page 312 FC-8 April 18,2019 MR. KUCHARSKI: Just wanted to say also—Bill Kucharski, DEM. When we put in those budgets, sometimes it's before we have a complete design, and they tend to have a very large contingency. And we always hope that final cost is going to be lower than what we have anticipated it costing. That's not to say that happens all the time. I won't mention Lono Kona, but— CHR. utCHR. DAVID: Ms. Eoff is listening. Oh no, Ms. Villegas is listening. MR. KUCHARSKI: But that is the hope. And we do have just—these are preliminary numbers that are not based on solid design. CHR. DAVID: Okay. And given that—thank you very much, Director. And given that, I just want to thank you and Chief for all you folks have done and for keeping us informed and taking this project home, hopefully. Crossing my fingers on the two, yeah. You folks did a great job. And very patient, and I appreciate it. So we will dismiss you right now and we will thank you—and wait, don't go away guys. Okay, now we have some business to take care of. So I need to get feedback from the Council on how we've got to proceed or should proceed. Now, according to our Clerk, we can recess this meeting to another day and continue the discussion on the budgets. Tomorrow is a holiday so he says we can recess this to the following week, which is the week we meet in Kona, right? And this will give us an opportunity to call back certain departments for additional questioning. But that meeting is held next week, so our timing is a little bit short, right? Or we can postpone this to the May 7h Finance Committee meeting in Kona, and this gives us another opportunity to ask questions of departments to provide additional information. So even though the Mayor's amended budget will be out by then, I am told by Mr. Clerk, that no amendments can be made until after May 22nd. Or we can approve and go forward, right, to the Special Meeting of the Council on May 22nd That was quick, Mr. Richards, go ahead. MR. RICHARDS: Postpone. I'm not ready to do anything. CHR. DAVID: So we want to postpone this till May 27h? MR. HENRICKS: Postpone till ? CHR. DAVID: The meeting on May 7h in Kona. MR. HENRICKS: Just so we're clear though, what you're postponing is just what we have before us. There will be no discussion on Draft 2. CHR. DAVID: Right. Page 313 FC-8 April 18,2019 MR. HENRICKS: That we'll not have time to—we can't add it to the agenda. So you're looking at Draft 1, and essentially everything that you guys have taken up at the point and time. CHR. DAVID: Or we can recess? MR. RICHARDS: Okay, since we're in the modality of budgeting for outcome, that means we have to figure the conversation we're going to have, we need to have. And I'm not ready to make any decisions given some of the information we've got. But I do want to continue the conversation going forward, and if that's the best way, whatever we need to do. So for Draft 2, do we yeah, I want Draft 2, so what do we do? MR. HENRICKS: So the process there, is that we'll get Draft 2 on May 3rd, in the form of a bill. And the standard process then is that, if you move this forward to the 22nd for the first the reading of this bill, and then you will first amend the draft that you're looking at now with the contents of Draft 2 that we get on May 3rd And then you will have Draft 2 from the 3rd, so you can draft amendments between, oh say the 7h and a time reasonable between the 22nd. So you can actually have it's expected that you'll have proposed amendments available on the 22nd for first reading. And then you'll be looking at the budget that the Mayor submits on May 3. So I guess the point is you could certainly postpone this to the 7h, although you really are where you're at without additional information. You would be restricted. I don't believe you'd be able to talk about the contents of Draft 2 because it's not publicly noticed. MR. RICHARDS: Okay, so that's not what we want to do. We want to be able to have conversation. So since I've been listening to numbers for three days, what do we have to do? MR. HENRICKS: If you want to keep—so what Chair David was offering is, basically if you felt like for some reason that you wanted to bring departments back, that you had not exhausted your questions, you wanted further analysis of the budgets as provided in Draft 1 though, you don't have to move it forward. You could continue that. However, if you're satisfied with your departmental review thus far, you move it forward to the meeting on May 22 for first reading, and then that's when Draft 2 will come into play. And you will have some time prior to that, meaning that we receive it near the end of the day on the 3rd to consider or start drafting amendments to essentially Draft 2. MR. RICHARDS: Okay, but can we still call the departments back? MR. HENRICKS: Absolutely. Page 314 FC-8 April 18,2019 MR. RICHARDS: Okay, as long as I can do that, I'm okay. MR. HENRICKS: They may not come, but you can call them back. MR. RICHARDS: So like I said, we're looking for the outcome. The outcome is being able to move forward, discuss Draft 2 while still having the ability to call the departments back for conversations. So with that, I yield. CHR. DAVID: Ms. Poindexter, go ahead. MS. POINDEXTER: And we have the time to individually go talk to the departments, so that's a big advantage of us to have the one-on-one with them and with Finance, and hopefully some things will be tweaked when Draft 2 comes back. So we have that ability, and I think that's great. So I wouldn't support a Postponement. MR. RICHARDS: Yeah, so I don't—like I said, as long as we can move it forward. CHR. DAVID: Okay. So that would be option 1, recess? MR. HENRICKS: Yeah, and you do currently have motions on the floor to move of these bills, the Operating Capital, out of Committee to the 22nd CHR. DAVID: Right. So those motions will stand and we'll just recess. MR. HENRICKS: You would need to vote on them, though. CHR. DAVID: Today? MR. HENRICKS: Yes. To move it out of Committee to the 22nd, you would vote on the motions for a favorable recommendation. CHR. DAVID: And then we recess? MR. HENRICKS: No, then you adjourn this meeting. CHR. DAVID: Oh, I see. Becausealright, you want it to go to the 22nd MR. HENRICKS: Oh, I don't particularly want anything. MS. EOFF: Madam Chair? CHR. DAVID: Yes, go ahead, Ms. Eoff. MS. EOFF: I think that's our usual process because the Council calendar reflects the Special Meeting on the 22nd Page 315 FC-8 April 18,2019 MR. HENRICKS: It is. So when we had contemplated these issues of recessing and potentially postponing it, it was with the sole purpose of not finished doing this part of the business yet. CHR. DAVID: Okay,perfect. MR. HENRICKS: That's the only real reason you would keep it in this Committee at this point and time. CHR. DAVID: Okay. So right now we're going to vote on MS. POINDEXTER: Madam Chair, can I just ask one more thing? CHR. DAVID: Sure. Go ahead, Ms. Poindexter. MS. POINDEXTER: Because it came to be clear. Because I think at one time during my years on here, we wanted vote—say "no" on this, remember? And voting it down wasn't a good thing. It's like voting it through? Or how ? MR. HENRICKS: If you vote now, what really you're doing is just giving it a negative recommendation. MS. POINDEXTER: Okay. MR. HENRICKS: So it would still have the same effect of moving it to the 22nd. It just would basically say you don't care for Draft 1. MS. POINDEXTER: Okay, so we could vote all negative no and move it forward? MR. HENRICKS: Sure, but it will still move go forward. MS. POINDEXTER: It won't kill this? MR. HENRICKS: No. MS. POINDEXTER: And kill the budget, and the Mayor doesn't want. MR. HENRICKS: No, we're in Committee. So yeah, correct. It just would be a negative recommendation. MS. POINDEXTER: Just for clarification. I remember there's so many different little MR. HENRICKS: It will get even more fun when we get to first reading. Page 316 FC-8 April 18,2019 MS. POINDEXTER: It will get worse, I know. MR. HENRICKS: Yeah, this kind of a quote, unquote "easy part." CHR. DAVID: Okay. So there's already a motion on the floor made by Ms. Poindexter, seconded by Ms. Eoff, on approving Bill 30 and filing all related communications. All those in favor,please say "aye." Okay, roll call. Vote on Bill 30: The motion to recommend passage of Bill 30 on first reading (Approved) was carried by the following roll call vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Lee Loy, Poindexter, Villegas, and Chair David—7. Noes: Committee Member Kierkiewicz and Richards —2. Absent: None. Excused: None. CHR. DAVID: Thank you. And moving on to Bill 31. We have a pending motion by Ms. Poindexter, seconded by Mr. Richards, to approve Bill 31. Mr. Clerk, roll call please. Vote on Bill 31: The motion to recommend passage of Bill 31 on first reading (Approved) was carried by the following roll call vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David—9. Noes: None. Absent: None. Excused: None. CHR. DAVID: So now, both these bills move forward. And I guess I need a motion to adjourn. Page 317 FC-8 April 18,2019 ADJOURN- There being no further business, at 4:17 p.m., Ms. Lee Loy moved to adjourn MENT: the meeting. Seconded by Mr. Richards and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter,Richards, Villegas, and Chair David—9. Noes: None. Absent: None. Excused: None CHR. DAVID: Happy Easter, everybody. And thank you, everybody, departments, for your patience. Thank you,Mr. Kamelamela. Approved: e „,„..a0„„ Maile Medeiros Pavia, Chair Finance Committee Page 318