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HomeMy WebLinkAboutMIN FC 2022/03/22 2020-2022 Committee on Finance 30th Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawaii March 22, 2022 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 1:01 p.m., in the Council Chambers, Kona, by Mr. Matt Kaneali`i- Kleinfelder, Chair. ROLL CALL: Present: Mr. Matt Kaneali`i- Kleinfelder, Chair(via videoconference from Hilo) Ms. Heather L. Kimball, Vice Chair Mr. Aaron S. Y. Chung, Member Ms. Maile Medeiros David, Member Mr. Holeka Goro Inaba, Member Ms. Ashley L. Kierkiewicz, Member Ms. Susan L. K. Lee Loy, Member (came in later) 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: (There were none.) CHR KANEALI`I-KLEINFELDER: Mr. Clerk, if we could, I would like to go to Bill 141, as we have the Director here. Change Order As directed by the Chair and with no objection from the Council Members, the of Business: following items were taken out of order: FC-30 March 22,2022 Bill 141: ADOPTS A PAY PLAN FOR PERSONS EMPLOYED BY THE COUNTY OTHER THAN THOSE WHOSE PAY IS OTHERWISE PROVIDED FOR, DESIGNATES PAYROLL PERIODS, PAY DAYS, PRESCRIBES REQUIREMENTS WITH RESPECT TO OFFICIAL FIDELITY BONDS, AND REPEALS ORDINANCE NO. 21-35 AND ALL AMENDMENTS THERETO, SAID ORDINANCE TO BE KNOWN AS THE SALARY ORDINANCE OF 2022 Establishes rates of compensation for appointed employees in the Legislative Branch and the Office of Housing and Community Development, the County Physician, Student Helpers, and Senior Community Services Aids for various County agencies. Reference: Comm. 679 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Mr. Inaba moved to recommend passage of Bill 141 on first reading. Seconded by Ms. Villegas. (Note: At this time, Human Resources Director Waylen Leopoldino came forward to address the members of the Committee.) CHR KANEALI`I-KLEINFELDER: Council Members, discussion on the bill? And we do have Mr. Leopoldino here in the Hilo Chambers. MR. INABA: Chair? This is Holeka. CHR KANEALI`I-KLEINFELDER: Mr. Inaba, go ahead. MR. INABA: Yes, if we could have the Director just give us a quick overview as to what's before for us and anything he would like us to know. Good afternoon, Director. Thank you for being here. MR. LEOPOLDINO: Good afternoon. Waylen Leopoldino, Director of Human Resources. I'm here on behalf of the Salary Ordinance, Bill 141. Generally this is a pay plan that we have in place for all positions that are not covered under Collective Bargaining Agreement or under the Salary Commission. So these are County Auditor positions, Legislative Branch, certain positions in the Mayor's Office, and our exempt positions in Housing. The rest of the positions, Civil Service positions, appointed positions, are all covered under another authority. Civil Service positions are covered under Collective Bargaining Agreements, and the Salary Commission handles salaries and pay for deputy heads and deputy directors. So this pay plan basically covers everyone else, as described in the ordinance. And I'm happy to that's kind of the overview and the purpose of this Salary Ordinance. Page 2 FC-30 March 22,2022 And so the heads of each of these bodies, the County Auditor, Legislative Branch, the Office of Management, and Housing, have the authority on an annual basis to make any kind of changes. And with the approval of the Council, this Salary ordinance is approved. MR. INABA: Thank you. And these steps that have been—or being proposed via this ordinance have been—everything recommended by the Salary Commission or the Cost of Government Commission? Or have they been reviewed by any of those bodies? MR. LEOPOLDINO: No, this is strictly by those agencies. They have the authority to make changes to these steps. MR. INABA: All right. That's all the questions I have right now. Chair, thank you. Thank you, Director. MR. LEOPOLDINO: Thank you. CHR KANEALI`I-KLEINFELDER: Mahalo, Mr. Inaba. Anyone else in Kona? Okay, hearing none. Mr. Leopoldino, I mean—how do you feel about some the changes that were made, as far as the rate and compensation? MR. LEOPOLDINO: They all seem reasonable. We do review it to make sure that nothing is out of line and it's reasonable. The ordinance, from what I understand, hasn't been updated for a while, so there were a couple of updated salaries and an added step. Nothing was unreasonable, so we would recommend that it would proceed, as well. Otherwise, it stays status quo. CHR KANEALI`I-KLEINFELDER: Okay, I agree. I looked over some of the steps are being requested and they seem very fair in my eyes, with the given state of the economy and wages across the different sectors that I've seen. MR. LEOPOLDINO: Right. I think if there was anything that we felt was out of line, we would definitely highlight and bring that to this committee's attention. CHR KANEALI`I-KLEINFELDER: Okay, perfect. Thank you. MR. RICHARDS: Chair, Richards. CHR KANEALI`I-KLEINFELDER: Oh, thank you. I was going check back in with you guys in Kona. Mr. Richards, go ahead. MR. RICHARDS: Yeah, thank you. Just question concerning with the current legislation. In our Legislature concerning minimum wage, how does that tie in to any of this? Page 3 FC-30 March 22,2022 MR. LEOPOLDINO: Again, we would have to go back to the heads of each of these bodies to see if that was incorporated. Right now with the minimum wage, we're okay with the minimum wage as it is right now, and nothing has been finalized. But we don't see an issue as of right now. MR. RICHARDS: Okay. Okay, I disagree on the substantial change. (inaudible) thought to come back and some changes here. But, okay. MR. LEOPOLDINO: I do want to add if I may, you know, if at that point the minimum wage passes at that certain rate which will affect this ordinance, we can always come in and amend. MR. RICHARDS: Okay. All right. Okay, thank you, Chair. I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Richards. Good point, thank you. Anyone else in Kona? Okay, seeing none. Mr. Leopoldino, thank you for your time today. Appreciate it. MR. LEOPOLDINO: Thank you. CHR KANEALI`I-KLEINFELDER: Okay, we have the motion on the floor to forward Bill 141 to Council with a favorable recommendation. All in favor? Vote on Bill 141: The motion to recommend passage of Bill 141 on (Approved) first reading was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Richards, Villegas and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Lee Loy — 1. Excused: None. CHR KANEALI`I-KLEINFELDER: Next, Mr. Clerk, if we could, I would like to take Communication 85.4. Comm. 85.4: SECOND QUARTER CLAIMS REPORT: OCTOBER 1 —DECEMBER 31, 2021 From Claims Investigator/Adjustor Clifford D. Victorine III, dated February 28, 2022, transmitting the above report pursuant to Section 2-9 of the Hawaii County Code. Motion to Close File: Mr. Inaba moved to close file on Comm. 85.4. Seconded by Mr. Richards. Page 4 FC-30 March 22,2022 CHR KANEALI`I-KLEINFELDER: Mr. Victorine III is here today in chambers, in Hilo. Any questions for him, Council Members? MR. INABA: Yes, I have a quick question. CHR KANEALI`I-KLEINFELDER: Okay. Mr. Victorine, come up. (Note: At this time, Claims Investigator Clifford D. Victorine III came forward to address the members of the Committee.) CHR KANEALI`I-KLEINFELDER: Okay, Mr. Inaba, he's on his way up. Go ahead when you're ready. MR. INABA: Mahalo. I do see the last time in this report was related to an injury at one of the parks here on the west side. Do we know if there was an issue that caused her to fall, and if that issue has been resolved or fixed if there was a maintenance problem? MR. VICTORINE: Hi. Cliff Victorine, Corporation Counsel Claims Investigator. I know that the issue that was basically brought up in this accident was addressed to the department. Whether or not they did the repairs, you know, we have to talk to the department. We went forward and explained our issues with them. Let them know that they were on notice, at that point, that it was there. And when they become on notice, we're on notice, meaning we, the County, so therefore there's a push for them to do it. It was my understanding that it did get done, but I can't say it did because I didn't see it. MR. INABA: Interesting, okay. Yeah, I would just say it would be good to make sure that we're getting these followed through because we will see these cases, whether it's these small ones or executive session-type, that we want to make sure nobody else gets injured. So, hopefully it's resolved. Thank you so much. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. Anyone else? MS. KIERKIEWICZ: Chair? This is Ashley. CHR KANEALI`I-KLEINFELDER: Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you. Aloha, Mr. Victorine. Thanks for being present. I don't know if you can answer this question, but I'll ask it anyway. You know, every quarter we do see vehicle damage as a result of County personnel backing into someone's vehicle, and I'm just wondering as part of that process, do you or do the respective departments prescribe additional driver training? Because I know a lot of the apparatus that is being driven around are not your usual cars and F-150s? Page 5 FC-30 March 22,2022 MR. VICTORINE: And thank you for the question. Yes, we—it really depends on the situations. Do note that when these accidents happen, the person involved in the accident must file a report, which goes to their direct supervisor; from there, it does up the chain to the department head signs off on it before it gets issued out to us, the Safety Department, and Risk Management. So their department should be well aware of what's going on, you know, with their employees and their accidents, especially these type of accidents that you brought up. Secondly, when I see a trend of a type of accidents or people involved in multiple accidents, I personally reach out to the departments and let them know, hey, this is what I've seen, make sure that they're aware of it. Our department, in this scenario we don't have the power to prescribe stuff, but we do have the power and the ability to recommend stuff be done. For instance,just the other day I mailed an email out to a department, something that I saw that I felt should have been addressed and be looked at, and next thing I know I get a call from the training department, making sure that the training department was aware of what it is that we had a concerned about. So most departments are open to—well, I said most, I haven't had anybody not be open to our comments. We do reach out, but ultimately that falls upon the department to be responsible for their personnel. MS. KIERKIEWICZ: Thank you so much, Mr. Victorine. I figured there were feedback loops, but I just wanted to hear it from you as to how you maintain communications with the various departments, so that we're doing everything we can to just limit the risk and liability on the County's part. Thanks again for being here. I appreciate it. Chair, I yield. Thank you. CHR KANEALI`I-KLEINFELDER: You're welcome. Thank you, Ms. Kierkiewicz. Any questions from Kona? Okay. Mr. Victorine, I have one question, and it kind of stems from Ashley's question. But when we see a number of vehicles reversed into by trucks in the County, I was thinking about like my grandma and grandpa, do we have reverse cams on those vehicles that would potentially help not let this happen? MR. VICTORINE: Yeah, the question that has come up in the past about whether or not reverse cams should be on these vehicles. CHR KANEALI`I-KLEINFELDER: Okay. MR. VICTORINE: And when I was addressed actually one time about it, my answer was I would rather have sensors prior to the reverse cameras. If I could, I'd have both. You know, we don't put in the orders for the vehicles and these type of things. Page 6 FC-30 March 22,2022 But the reason I'd rather go sensors first is because that keeps the person's head up and looking around as to what's going on, and the sensors will help with that stuff that they can't see. The cameras will only give you the vision of where the camera is pointing at. Even if it's a wide-view angle, you can only see in that area when you're looking at the camera. A lot cameras, they're designed to take you away from the basic skills of driving, which keeps your head up and looking around peripheral, how you get taught. CHR KANEALI`I-KLEINFELDER: I'm not, because I'm thinking about my kids MR. VICTORINE: Yeah. CHR KANEALI`I-KLEINFELDER: And they get the reverse-cam in mom's car, but they're always watching the camera, but my daughter's doesn't have that. So when you're backing up, you've got to use your ears. MR. VICTORINE: Yeah, you've got to use your peripheral, yeah. So it's things that we look into, whenI kind of mentioned that, "Hey, maybe consider making these requirements a part of your"when you're asking for a vehicle, this be there. One of the biggest issues I would find with these vehicles that are backing up into other vehicles, for instance, Public Works will have these vehicles, they're 250, 350s that have dumper-beds. Park and Recreations have these vehicles, along with other departments, and they'll talk about it. It's a crew-cab truck with this dump-bed, and it has a blind-spot. And then I'll go ahead and get the police report, and I'll look at it; and it has multiple people in the vehicle, because the police report will list everybody in the vehicle. And I'll call them and ask them well, if the driver knows he has a blind-spot, why isn't one of those guys that's in the car with him ? CHR KANEALI`I-KLEINFELDER: Yeah, a spotter. MR. VICTORINE: Being a spotter. You know, so those are the type of cause and advice that we give to those are the things that we need to start looking at. I remember when I was in the military, you know, it was a whole lot—you start getting into those kind of accidents, you're actually paying for it. But that's a different type of rules, when you CHR KANEALI`I-KLEINFELDER: Yes, a little bit different. Okay. MR. VICTORINE: Yeah. But we do pass that type of information on. Page 7 FC-30 March 22,2022 CHR KANEALI`I-KLEINFELDER: Okay. MR. VICTORINE: I don't know when the last discussion ever came up because I wasn't given any—asked to give any input on cameras and back-up sensors. But when it did come up, that was my advice. CHR KANEALI`I-KLEINFELDER: I mean, I'm not sure what the cost is. These aren't fairly substantial damages. I'm looking at, you know, less than $6,000 total, but cost of sensors may save us money in the long run. But definitely worth the departments looking into, and thank you for your input on that. I appreciate it. MR. VICTORINE: I understand. CHR KANEALI`I-KLEINFELDER: I'm glad you're kind of on the same page as me. That's good. MR. VICTORINE: Yeah. CHR KANEALI`I-KLEINFELDER: Okay. Mr. Victorine, thank you very much. MR. VICTORINE: Thank you. CHR KANEALI`I-KLEINFELDER: Council Members, unless there's anything else? Okay, hearing none. So we have a motion on the floor to close file on Communication 85.4, all in favor? Vote on Comm. 85.4: The motion to close file on Comm. 85.4 was carried by Filed the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder–9. Noes: None. Absent: None. Excused: None. CHR KANEALI`I-KLEINFELDER: Okay, let's go to, Mr. Clerk, if we could, Resolution 345-22. Page 8 FC-30 March 22,2022 Res. 345-22 : AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR SERVICE ADDENDUM WITH SUSTAINABILITY PARTNERS LLC FOR THE PROVISION OF BATTERY ELECTRIC INFRASTRUCTURE AND BATTERY ELECTRIC BUSES Authorizes the Mayor to enter into a 10-year service addendum for the construction of a new infrastructure network and the acquisition of five 35-foot electric buses. Reference: Comm. 680 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Mr. Inaba moved to recommend adoption of Res. 345-22. Seconded by Ms. Kierkiewicz. (Note: At this time, Mass Transit Agency Administrator John Andoh came forward to address the members of the Committee.) CHR KANEALI`I-KLEINFELDER: I believe we have Mr. Andoh in Kona today, is that correct? MR. HENRICKS: Mr. Chair, you're correct. He is here. CHR KANEALI`I-KLEINFELDER: Okay. Thank you for joining us today, Mr. Andoh. If you could, give us a little background on this, and then we'll go to questions and discussion from the Council. MR. ANDOH: Yes, Mr. Chairman and members of the Committee. John Andoh, Mass Transit Administrator, Mass Transit Agency. Today we are requesting the Council to consider a nonbinding service addendum with Sustainability Partners to allow the agency to obtain infrastructure charging equipment for the battery electric buses that we will be receiving from a grant that we've pursued with the Federal Transit Administration, as well as five additional 35-foot battery electric buses for up to a ten-year period. To give you some historical background on this arrangement, the Research and Development Department in conjunction with the Mass Transit Agency participated in a cooperative procurement with the State Procurement Office, which released a Request for Proposals for procuring electric vehicles and charging stations statewide, and the Sustainability Partners was awarded that contract to procure these items in December of that year. So we've been working with Sustainability Partners on structuring a nonbinding service addendum, which will allow them to formulize their costs, so to allow for the County to evaluate those costs to make sure that a long-term deal would be in Page 9 FC-30 March 22,2022 the County's best interest as it relates to bringing battery electric buses to the island in a much faster timeframe as well as building the infrastructure network to allow us to charge these battery electric buses, whether they're owned by whether they're through Sustainability Partners or through federal grants that we continue to pursue. It is envisioned that if we did enter into a service addendum in the future, that we would use General Excise Tax funds to pay to the cost of the buses on a per mile rate basis, and for the charging infrastructure on a per-charge basis. It is anticipated that the cost of the bus would be amortized basically over a 12-year lifespan, and then a 20-year lifespan for the charging infrastructure. At the present time, based on the draft service addendum, the cost is looking at$4.01 per mile for each bus that operates; and then for the charging infrastructure, we're initially looking at a cost of$9,529 for 65 charging events per month, and then 100 charging events over 65 per month. We are actively pursuing Hawaiian Electric rebates through the EV(Electronic Vehicle) Charge Up program as well as the VW (Volkswagen) settlement rebates to offset the cost of the buses. So we are anticipating as we are awarded these funds, that those amounts would decline. The purpose of having an initial service addendum, again it's just to continue to allow Sustainability Partners to finalize what a cost would truly be; give us at the County an opportunity to analyze those costs to determine if a long-term service addendum is in the best interest of the County. We would intend coming back to the Council to seek authorization to allow for the Mayor to execute a binding service addendum if we feel once they've done their due diligence, that this deal makes sense. I'd be happy to answer any questions, if there any on this partnership. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Andoh. Appreciate it. I'm sure there will be some questions. Council Members? Kona? MS. KIMBALL: Chair? Council Member Kimball. CHR KANEALI`I-KLEINFELDER: Ms. Kimball, go ahead. MS. KIMBALL: Thank you, Chair. Just a couple questions about—so this is going to function—essentially is a buyback program, where they purchase the components for us and then we essentially lease them back over the 20-year amortization? MR. ANDOH: Yeah, you can consider as that, yeah. They're calling the model "Sustainability as a Service," in essence. Page 10 FC-30 March 22,2022 MS. KIMBALL: Right. And so it's not exactly interest rate that we would pay, but what is the service amount that we're paying in addition to like the actual amortization of these components? The reason I'm asking is because we're evaluating this model versus a borrow-money and buy-things model, where we can get a pretty good interest rate as the County. So kind of trying to get a you know, we usual pay one to one-and-a-half percent on the money borrow. What we are looking at in a contract of this type? MR. ANDOH: So in essence, with this type of contract is really a pay-per-use; and then what ends up happening is as the asset depreciates, under this pay-per-use model, we don't just have to worry about the replacement of the asset because they would be responsible for the replacement of the asset, once it gets to its useful life. Also wrapped into the rate, would be the maintenance cost associated with maintaining the vehicle. So in essence, wrapping both operating and maintenance and capital cost all into one rate. MS. KIMBALL: And what is that rate? It's hard—it's okay. Preparing to apples to oranges here, but is there kind of an amount we could contribute to the orange to compare with our typical loan percentage rate? MR. ANDOH: So basically you can the $4.01 per mile rate for the bus. So in essence, a typical bus goes about 500,000 miles, or 12 years, whichever comes first, so in essence we would do the $4.01 times the 500,000 on the bus cost. And then on the infrastructure cost, the more buses we have in the fleet, initially we're going to have five through the FTA (Federal Transit Administration) grant, and then if we do this relationship that will give us another five, so that will give us ten. So the more charging events we have, then—in essence we're paying for the cost of them to build the infrastructure in a much quicker manner versus us trying to seek $1 million or $2 million to then try to build out the they're not just the actual equipment cost, that doesn't factor in the construction cost, to then try to build out the infrastructure. And with the buses going to anticipate to be coming in about a year, we might not be able to do it as fast as a private sector would be able to. So we have to—one thing we do have to do the analysis on, which hasn't been done yet, it's in the process of being done by a consulting firm, is to understand, based on if we use these buses in the Hilo and Puna area as the first initial network, how many times do we anticipate those buses hitting one of the charging stations, either at Mo`oheau, or Puna Kai, or at our baseyard, to determine if there's value in paying on a per-charge basis versus actually just buying the equipment outright and hiring a contractor to build? Page 11 FC-30 March 22,2022 MS. KIMBALL: Right. Okay, great. MR. ANDOH: There's actually more due diligence that we need to do. MS. KIMBALL: Yeah. Really excited to see us trying this. And thank you for all your hard work, you know, doing the grants and all of the other pieces of this puzzle. So excited to see how this model works, particularly with Mass Transit. And when are we looking at for getting to the point where we're into the, essentially, binding contract? MR. ANDOH: I anticipate, should this be recommended for Council's consideration, Sustainability Partners will try and bring us something back in next 45 to 90 days. Corporation Counsel is still finalizing the terms of how that addendum is going to look like, to make sure that it takes into consideration the County's contract terms and conditions, and the County's standards, and that it reconciles properly with this 200 page RFP (Request for Proposals) with the State. MS. KIMBALL: Right on, right on. All right, thank you, Administrator. Thank you for your time. Thank you, Chair. I yield. CHR KANEALI`I-KLEINFELDER: Mahalo, Ms. Kimball. MR. CHUNG: Mr. Chairman? CHR KANEALI`I-KLEINFELDER: Mr. Chung, go ahead. MR. CHUNG: Yeah, thank you. Hi, Mr. Andoh. Always a pleasure to see you here. MR. ANDOH: Yes, Mr. Chung. MR. CHUNG: You know, who prepared this resolution? MR. ANDOH: Pardon me? MR. CHUNG: Who prepared this resolution? MR. ANDOH: This was prepared in the Finance Department. MR. CHUNG: Finance Department? MR. ANDOH: Yes. Page 12 FC-30 March 22,2022 MR. CHUNG: You know, because the first thing that stood out to me—and first of all, I'm agreement with what we're trying to achieve. I don't think anyone would be against it. But just in terms of the particulars, the first word I saw was "addendum,"right? And so there's nothing in the recitals that talk about an original contract. Because addendum kind of means the word "changing" something, right, or we're adding something to something. So there's nothing in the body of the resolution which educates us as to what we're changing. So we have to go to this information, Form B-52, which isn't incorporated into the resolution as an exhibit or anything like that. So it kind of explains that "Research and Development as well as Mass Transit joined in a cooperative procurement in March of 2020." So I guess that's what we're going to be amending or adding to? MR. ANDOH: That's correct. MR. CHUNG: And this was in cooperation with the State Procurement Office. How was this service procured? MR. ANDOH: From my understanding, is that the State went out in 2019 and released an RFP through the DOT (Department of Transportation) Highways Division for electric vehicles and charging infrastructure. MR. CHUNG: How did we get involved in this thing? MR. ANDOH: So we then signed what is called a Cooperative Purchasing Agreement. MR. CHUNG: With whom? MR. ANDOH: The County. MR. CHUNG: No, we the County MR. ANDOH: We, the County. MR. CHUNG: Entered into that agreement with who? The State or the Sustainability Partners? MR. ANDOH: With the State. MR. CHUNG: With the State, okay. MR. ANDOH: Yes. And that also includes Kauai, Maui. City and County of Honolulu also participated in this. Page 13 FC-30 March 22,2022 MR. CHUNG: And that was done pursuant to what? A State law? A resolution? MR. ANDOH: That is pursuant to Chapter 103D of HRS (Hawai`i Revised Statutes), and Chapter 3-128 of the Hawaii Adminis MR. CHUNG: Okay, some State law allowed us to do that, right? MR. ANDOH: Correct. MR. CHUNG: Okay. No need for Council action, right? MR. ANDOH: Correct. MR. CHUNG: So now, go on. And then? So, continue. MR. ANDOH: Oh, okay. Okay, so then they then evaluated the proposals. (inaudible). The State evaluated the proposals, and then they, the SPO (State Procurement Office), awarded a contract to Sustainability Partners to being the best—the most responsive proposal to their RFP. And then the SPO notified the counties and other State agencies that this contract is available for counties to, for a lack of a better word,piggyback off of, and to enter into addendums to the State master contract. MR. CHUNG: I see. Interesting. MR. ANDOH: To procure the necessary electric vehicles and charging infrastructure. MR. CHUNG: And that I think is the operative term, the master contract. So the State is the one that kind of procures it, but we all can join in? MR. ANDOH: That's correct. MR. CHUNG: Okay. So we didn't pick Sustainability Partners. They picked them, and then we're opting in. MR. ANDOH: That's correct. MR. CHUNG: Okay. And then this seems like a two-pronged approach, where this resolution would allow Sustainability Partners to finalize the pricing with their vendors. This would facilitate that. And then later on we're going to have another resolution when the final proposed addendum is completed? MR. ANDOH: That is correct. Page 14 FC-30 March 22,2022 MR. CHUNG: Okay. And that's all prescribed in the State law? I'm just kind of wondering why we're going through this process. You know, it's like a two-step process; we're authorizing payment of funds of a later fiscal year, which is what we're supposed to do, yeah, pursuant to Charter, to do something, and then later something else is going to happen. Are we kind of MR. ANDOH: The reason why we did this two-pronged approach is that this is a heavy investment on the private sector to do a relationship like this, and we want to at least ensure that there is a form of commitment from the Council; that if we're going to go down this path, then let's start with the nonbinding so that we're not committing any funds per se to this initial research, while they go do their research. And then once we get the final cost, it gives the administration an opportunity to analyze is it, and make sure that this will be, for the ten-year span, in the best interest of the County. So that we can come back and say, We've due diligence and that we're ready to ask for commitment of funds towards this contract. MR. CHUNG: Okay. MR. ANDOH: And Sustainability Partners wanted they wanted some form of commitment, if we're really interested in this before they go down and make the expense to do their due diligence in getting those exact costs for this. MR. CHUNG: I certainly understand that. That's sensible, yeah. I would have structured it a little differently to get that commitment, but none the less it works. I just wanted some background. It wasn't readily apparent from the recitals, and you explained everything brilliantly. And of course as I said, I preface everything by saying, you know, how can we no, how can I vote against something like this, because is the intent is very good. But thank you. MR. ANDOH: Thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Chung. MR. RICHARDS: Chair, Richards. CHR KANEALI`I-KLEINFELDER: Mr. Richards, before I grab you, I think Ms. Strance had raised her hand. I wanted to touch base with Corporation Counsel. MR. RICHARDS: Sounds good. (Note: At this time, Corporation Counsel Elizabeth Strance came forward to address the members of the Committee.) Page 15 FC-30 March 22,2022 MS. STRANCE: Good afternoon. Can you hear me okay? CHR KANEALI`I-KLEINFELDER: We can hear you good. Good go ahead. MS. STRANCE: Oh, okay. Elizabeth Strance, Corporation Counsel. I raised my hand and put it right back down because Mr. Andoh made the comment that I would have—about the reason for the two-step process. CHR KANEALI`I-KLEINFELDER: Okay. Okay, thank you, Ms. Strance. I wanted to make sure I got you. Okay, thank you. Okay, Mr. Richards, go ahead. MR. RICHARDS: Thank you, Chair. It's a dollars and cents question, John, so thank you. Four dollars, $4.01 per mile. If I recall right, diesel buses are somewhere between $550,000 and $600,000. The electric buses are somewhere around $800,000 or $850,000, something like that. The 10- or 12-year amortization of upfront purchase cost plus maintenance or repair over the life of the bus, it work out to be about the same. Am I recalling that correctly? MR. ANDOH: Yeah, you're recalling that correctly. Yes. MR. RICHARDS: Which I have as operation cost. We have $4 a mile here versus operational cost of, and let's just use diesel, what I'm going for is ultimate, thel2-year total cost including operations. Does this $4 a mile equate because we've already agreed that the cost of a diesel versus the electric plus maintenance, they're the same-same. So operational cost, is this $4 equate to what's estimated for the expected life of the bus compared to the diesel? I'm looking for comparing that. And we're not talking about environmental impact or anything like that. I just want to know the operational overall. MR. ANDOH: Yeah, and that's kind of the analysis that we're doing in partnership with a consulting firm called Center for Transportation Excellence. They're basically looking at our current routes to see how are we presently using our buses from a diesel capacity or locally, and how many times do we anticipate we'll be charging the bus on a daily basis. And then they're also analyzing kind of our fuel cost, our operational cost, and our maintenance cost, collectively, so that we can use that final number to determine if this deal makes financial sense. MR. RICHARDS: Okay, so we don't have an answer yet on ? MR. ANDOH: We don't have answer yet. MR. RICHARDS: Okay. And so the follow-up on that, as well with all your masterful work, as far as getting the funding through grants to replace these buses, do we have to purchase buses as this part of the deal? Or if we're grant funding Page 16 FC-30 March 22,2022 for these buses, would the $4 a mile still be the same? Because I assume they're taking the cost of the infrastructure building, is that correct? MR. ANDOH: That's correct. Those are two separate costs. So how we're doing this approach is right now because the way we got our grants, or specifically to just—for the County to buy buses through traditional procurement processes, we're separating the two projects. So we're moving forward in buying the buses with those grants at the traditional capital dollars that we would own. This way was the initial five was a way to get us to a fleet of 55 buses for the master plan, since we don't have enough grants at this point to get us to 55. And then to also test to see, can this model work for future bus replacements? MR. RICHARDS: Okay. MR. ANDOH: When we get into—after the initial ten years expires, is something that we want to continue to do? Because we're going to have to retire those buses that we're buying with the grants, somehow in the next 10 to 12 years. MR. RICHARDS: Okay. MR. ANDOH: So this is kind of an introduction at this point. I didn't want us to recommend us going headstrong into replacing the entire fleet until we kind of get our feet wet with how this opportunity could work. MR. RICHARDS: Okay. That makes me feel a lot more comfortable. A little bit R&D (Research and Development) to test our geography here, and the funding mechanism and all that. Okay, that's making me feel a lot more comfortable about this. MR. ANDOH: Now the infrastructure side though, this is where we would have—if we do this arrangement, the federal-funded buses plus their buses, we'd both be using the infrastructure network. MR. RICHARDS: Okay. MR. ANDOH: And we feel that at least on the infrastructure side, they can build it at a much greater pace than if we do a traditional County procurement and go through the traditional grant funding process to build out this network, in order to make zero emissions work island-wide. MR. RICHARDS: And that's okay to use that charging facility with our owned-electric buses? That's okay? That's been accepted? MR. ANDOH: Yes. We've structured the addendum in a manner to where that would be the case. One thing that we do want to discuss with Sustainability Page 17 FC-30 March 22,2022 Partners is, is there a way to renegotiate if we exceed the 65 charging event, or if we go under the 65 charging event? So that perhaps would incentivize for making more charging events, if we can use—as we continue to buy more battery electric buses regardless of how they're funded, and we're charging them more. Or if there's rented County vehicles. As I understand, R&D is looking at doing this model for replacing a fleet vehicles. What if those fleet vehicles use the infrastructure, and it increased those charging events? Would we get some savings back? MR. RICHARDS: Okay. I guess I shouldn't be surprised that you've already thought through a lot of this, John, because you always do, and I appreciate that. And just as ais this induction charging or is it plug in? MR. ANDOH: Right now it's left open-ended. We would like to do inductive charging, but we're still waiting for that standardization to occur. And that's coming very close. We're looking at Summer of 2022. So right now we're evaluating both. MR. RICHARDS: Okay. All right. That answers my questions. Thanks, Chair. I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Richards. Anyone else in Kona? MR. HENRICKS: Not at this time, Mr. Chair. CHR KANEALI`I-KLEINFELDER: Okay. Thank you, Mr. Henricks. Well, Mr. Andoh, good presentation. A few follow-up questions for you. I'm looking at the infrastructure part of this. You know, at the end of this term with them, do we own the infrastructure? MR. ANDOH: No, the infrastructure would then become replaced. So the purpose of the intent of Sustainability as a service is, they're constantly keeping the equipment new through us paying that, they get either the per mile fee or the charging event fee. We did structure the proposed addendum that if for whatever reason federal funds were included into this relationship, since under after FTA (Federal Transit Administration) requirements, we have to retain ownership of that equipment, that SP (Sustainability Partners)would have to turn over that equipment to us. But right now we're not at that point, where we're ready to introduce federal funds into this. CHR KANEALI`I-KLEINFELDER: Okay. Page 18 FC-30 March 22,2022 MR. ANDOH: It would require some conversations with HDOT (Hawai`i Department of Transportation). CHR KANEALI`I-KLEINFELDER: Just in my electrical background, I mean if we're talking about installing chargers for buses, I'm going to guess, those are fairly large, and the amperage needed to drive those chargers is going to be big. So is there going to be installation on the frontend or tie-ins to existing electrical services, so that will be fairly heavy. MR. ANDOH: Correct. CHR KANEALI`I-KLEINFELDER: And those kind of improvements will be done by Sustainability Partners? MR. ANDOH: Correct. CHR KANEALI`I-KLEINFELDER: And at the end of the agreement, it will be removed? MR. ANDOH: At the end of the agreement, there will be an opportunity if we didn't continue a relationship with them, for us to obtain or buy out the infrastructure. CHR KANEALI`I-KLEINFELDER: Okay. Okay, that makes sense. Are we tying in, or we're using renewable energy as any part of this move towards battery electric chargers? MR. ANDOH: That is our desire. So that includes like solar panels to help with the charging infrastructure, whether it's at the baseyard or at the transit hubs, where we would construct these charging locations. CHR KANEALI`I-KLEINFELDER: Is that part of the of what we're looking at here in this resolution? Is this part of the agreement? MR. ANDOH: It's something that we've expressed to them that we're interested in. It's not specifically called out in the service addendum, but it could be included. CHR KANEALI`I-KLEINFELDER: I think that would be a huge step for us as a County and a big cost-saver, although there will be an initial cost for that solar system. I know it falls in line with what is being done by Research and Development currently, through Riley Saito. But I—you know,just—we had our presentation from HECO (Hawaiian Electric Company) today, and we were talking about the rising cost for electricity. And if our electricity that we're using to charge our buses is based on fossil fuels, we can do better. You know, it's kind Page 19 FC-30 March 22,2022 like our hydrogen refueling station in Kona is currently being driven by fossil fuel-based energy. And it's not a sustainable source of hydrogen at that point. But if you add solar into the equation, then it begins to be a good step in the right direction. So just trying to feel out whether we're making those steps now or whether it's going to come down the line. MR. ANDOH: I know as we continue to build out these hubs, and we have to build a baseyard in Kailua-Kona, it is my intent to want to include into our specification, solar panels, and try to make it lead-efficient and it's drive for renewable energy. CHR KANEALI`I-KLEINFELDER: Okay, good. Good. Glad to hear that. And I'd be remiss if I didn't ask, are there solar panels that are attached to the roof of this bus? I mean, we've got a 35-foot by 10-foot bus roof. You could actually fit—they have those stick on solar panels. Is that included in these buses, or no? MR. ANDOH: No. I'm not sure that technology exists as of yet. CHR KANEALI`I-KLEINFELDER: They use it on roofs. It's maybe a matter of tying into an electrical system on the bus. That would be interesting to know if they're doing that. Try ask them. Ask them, when next time you get a chance. MR. ANDOH: Yeah. I definitely—we're going to be going out to bid for the battery electric buses soon, so that's one thing we can pose to the manufacturer, is to see if is that something possible or is it still in research and development. CHR KANEALI`I-KLEINFELDER: Yeah. I wouldn't ask if it was a car, but as a bus, that's a big surface that we could possibly use. The last question, workforce side. You know, your mechanics, thesesorry, this group, Sustainability Partners will be doing the servicing on the buses. Do we have an option to train some of our own staff to do work on electrical vehicles or buses? MR. ANDOH: Yes. So this isI'm going to answer your question in a two-pronged approach. CHR KANEALI`I-KLEINFELDER: Thank you. MR. ANDOH: From the federal grant side, for our grants to buy the five electric buses, we have Workforce Development money available to give our mechanics the appropriate training so that they'll be able to maintain those five battery electric buses. Page 20 FC-30 March 22,2022 For the purposes of this partnership, even though Sustainability Partners will maintain the buses, we did add language in there that will allow at our discretion for them to also train our mechanics to maintain battery electric buses. So regardless of the way we buy the buses, we've ensured that the mechanics will get appropriate training so that they can maintain these buses into the future. CHR KANEALI`I-KLEINFELDER: Nicely done, sir. That is huge. That's a big step-up for our guys. You know, we've owned diesel. We've had battery. We have electric vehicles running right now. But I mean just for our staff to begin the work on electrical vehicles like this, would be huge, be great. Great opportunity. And then, is that tied into our school system as well, at HCC (Hawai`i Community College), UH-Hilo? MR. ANDOH: I'm sorry, Council Member. Can you ask that question again? CHR KANEALI`I-KLEINFELDER: Is that opportunity tied into our local colleges, as well? MR. ANDOH: So we've just started discussions, at least from the hydrogen side with the university, working on how we can do some type of workforce training partnership. I've just recently been in contact with the Executive Director of the County's Workforce Development Board, and actually we were having a conversation on how we can do some workforce training on zero-emissions bus technology, both battery electric and hydrogen. So it's my intent to continue that discussion to see how we can expand that, beyond from the college system but also into the high schools, since ultimately our long-term goal is to have a completely zero-emission bus fleet. CHR KANEALI`I-KLEINFELDER: Nicely done, sir. Well done. Well, congratulations. Thank you very much. (Note: At this time Energy Specialist Riley Saito came forward to address the members of the Committee.) MR. ANDOH: I also have Riley from Research and Development, the Energy Specialist. Maybe he could say a few things in relation to some of your questions you asked. CHR KANEALI`I-KLEINFELDER: Oh, is he there in Kona? MR. ANDOH: Yes. CHR KANEALI`I-KLEINFELDER: Yeah, Riley. Go ahead. Page 21 FC-30 March 22,2022 MR. SAITO: Aloha. CHR KANEALI`I-KLEINFELDER: Yeah, thank you. Thanks for being here. MR. SAITO: We knew you was going ask about renewable energy. So with the service addendum, it does include the 1.5 megawatt PV(photovoltaic) system at the baseyard with a four megawatt-hour battery. So we are including an energy offset based on renewable energy generation in this addendum. CHR KANEALI`I-KLEINFELDER: I had a feeling you were involved in this somehow, when John kind of mentioned that. So that is awesome. Good job. MR. ANDOH: Riley is really the architect for a lot of this, and so is Douglas. CHR KANEALI`I-KLEINFELDER: Well done. Well done, Research and Development and Mass Transit. One more time, Riley, how big is the solar system? MR. SAITO: One point five megawatt at the baseyard. One megawatt at Mo`oheau, with one yeah, that one is just straight battery-stored, one megawatt power with a three megawatt-hour battery storage at the baseyard. So how that relates to a charging station, each station is 150kw (kilowatt); 10 stations total 1.5 megawatt capacity needed. The three-megawatt hour battery would be able to charge 20 buses in one day, assuming they're 450kw each bus. CHR KANEALI`I-KLEINFELDER: Wow. Wow, this would be probably one of the most interesting things that has happened in a long time. This has been your baby for a long time, yeah? MR. SAITO: Yeah. So technically, the energy produced will be able to offset charging 20 buses to full charge daily with no feedback to the grid, and ideally no draw from the grid. CHR KANEALI`I-KLEINFELDER: Wow. MR. SAITO: Which would then reduce the need for a transformer increase at the point of dmarc (Demarcation). CHR KANEALI`I-KLEINFELDER: Wow. Options for the public? Sorry, I know I'm running over my time, but I'm just very detailed. Sorry, this is my thing. Is there a possibility for the public to use these charging facilities as well, or just purely for buses? Page 22 FC-30 March 22,2022 MR. SAITO: For the interface, it is standard and would be able to charge vehicles. CHR KANEALI`I-KLEINFELDER: Okay. MR. SAITO: Now administratively how you—if public vehicles would be parking at the baseyard, I'm not sure how that would work. But we do have and will be eventually presenting to you that is included in the vehicle transformation to zero-emissions that we're working on. CHR KANEALI`I-KLEINFELDER: Okay. Okay, good. MR. SAITO: At County facilities,parks, and other locations. CHR KANEALI`I-KLEINFELDER: Awesome. Okay, beautiful. Well, I think we'll leave it at that. That's a great place to end. That's a wonderful piece of news for this County if you can make this happen with this particular vendor. Very, very, very positive. Thank you. Okay, any more questions from the Council? Okay. Well thank you very much. MR. RICHARDS: Chair, a quick one,just follow up? CHR KANEALI`I-KLEINFELDER: Oh, Mr. Richards. MR. RICHARDS: Yeah,just quick. The renewable stuff, the solar panel battery, that's all included in that$4.01 a mile, correct? MR. SAITO: In the CT-5 charging infrastructure. MR. ANDOH: $9,500. MR. RICHARDS: Okay, thank you. Okay, Chair. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Richards. Good question. Okay. Well, Mr. Andoh, Mr. Saito, thank you very much. Appreciate the general overview. And really, really, really excited about the direction you guys are headed. That's amazing. But we have the motion on the floor to forward Resolution 345-22 to Council with a favorable recommendation. All in favor, Council Members? Page 23 FC-30 March 22,2022 Vote on Res. 345-22: The motion to recommend adoption of Res. 345-22 (Approved) was carried by the following voice vote: Ayes: Committee Members Chung, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member David— 1. Excused: None. CHR KANEALI`I-KLEINFELDER: Let's go toI think we have Mr. Kern waiting for us for Communication 664. Mr. Clerk, Comm. 664: FAIR SHARE ANNUAL REPORT AS OF JUNE 30, 2021 From Planning Director Zendo Kern, dated March 1, 2022, transmitting the above report,pursuant to Hawaii County Code, Section 2-162.1(a). Motion to Close File: Mr. Inaba moved to close file on Comm. 664. Seconded by Ms. Lee Loy. (Note: At this time, Planning Director Zendo Kern came forward to address the members of the Committee.) CHR KANEALI`I-KLEINFELDER: Mr. Kern is joining us today via Zoom, not in person. Thank you, Mr. Kern. Why don't you give us a quick overview, and then we'll go to questions from the Council, sir. MR. KERN: Sure. Good afternoon, Mr. Chair and members of the Committee. Zendo Kern, Planning Director. I appreciate the time here. So this is the Fair Share Annual Report that's come in, and bear in mind that this report is as of June 30, 2021. Just to how things go, that's kind of the traditional lag on that report, so that's what we're looking at from that time. I think you all have a fair understanding of Fair Share. If you need any clarifications, you could feel free to let me know. In there, you're going to see basically all the money that's come in, appropriations. There's been some few lapsed appropriations that could simply be reappropriated if the project is put forward. In North Kona, we did get some cash contributions. You'll see basically on the last line of that section, from a project there. I see some additional lapsed funds in the districts. So yeah, all very high-level. Little bit of funds came in. We also have South Hilo. A little bit of money came in through the project. And mostly lapsed of funds. As you can see there's not a lot of projects occurring, so Page 24 FC-30 March 22,2022 there isn't a lot of Fair Share money coming in at the moment. I'm happy to answer any questions that I might be able to. CHR KANEALI`I-KLEINFELDER: Thank you very much, Mr. Kern. Okay, Council Members? MS. LEE LOY: Yes, Chair. CHR KANEALI`I-KLEINFELDER: Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you. Thank you, Director Kern, for being here. Maybe you can help me because I've been asking this of Deanna, maybe the last few meetings. I'm trying to find that rational nexus between the more current work that the Police Department had to take on with the dogs. And so MR. KERN: Animal Control. MS. LEE LOY: Animal Control. Thank you, Director. You know, I view this as something we're chartered to do, but this would be like a new expansion of the Police Department and its function. And so I've been asking the question, can we use Fair Share funds to assist with Animal Control now that it's truly under the umbrella of the Police Department? MR. KERN: My feeling on that is one of—somewhat logic, and it could be wrong, I was thinking about that too, based on a I believe it was either the last committee meeting I was at, where we got noticed that the Police Department was purchasing some kennels in the Puna area. And those actually serve the entirety of almost East Hawaii, right? Similar to the Kona facility, that serves pretty much all of West Hawaii. And my feeling around that is I believe that we should be able to provide some rational nexus around that even if it were funds coming, say from South Hilo, but the facility was say in Puna, because it serves the entire area of the island. Now, I could be wrong. I can reach out to my Corporation Counsel, and just kind of vet that out. I do think there's a little bit of interpretation in there, but I personally would feel good about interpreting that. Because again, I feel like if it's serving that entire area and it's only going to be housed in one location, there are grounds for rational nexus. MS. LEE LOY: Great, thank you for that. Actually if it's okay with you director, I'll write a memo to you and Corporation Counsel asking that particular question. It gets really challenging to expend sometimes these Fair Share contributions because of that rational nexus and it's related to a brand new project; whereas, I see this as a service that the Police Department is doing, so it would be like a brand new program. Page 25 FC-30 March 22,2022 I also have a question on the lapsed funds. Is there any reason or understanding as to why—what looks like a lot of either road projects that have been lapsed over this last accounting for this one? MR. KERN: Yeah, I agree that there's a those are kind of a consistent areas that have lapsed, and I'm not—honestly I'm not sure. I haven't had the opportunity to reach out and see what was the reason for that. Certainly can. We've in a heavy-duty CIP (Capital Improvement Projects) conversation, so I think that will help with some of that. But I don't have that specific answer for you at the moment, I apologize. MS. LEE LOY: Don't worry, Director, I think is a source of funding and, you know, something that we can actually braid into some of the projects that we already have. Especially Parks Department, where we're trying to realize some new facilities in areas that just don't have it. Thank you, Director. I will follow up with a memo regarding Animal Control and utilizing funds as it does serve the entire island. Thank you, Chair. I yield. MR. KERN: Sure. Thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Lee Loy. Council Members in Kona, more discussion? Okay, hearing none. I don't have any questions for you, Director. Appreciate the overview. I looked over the document. I did have some concerns about seeing so many lapsed dollars. You know, one question that actually did arise me. You know, lapsed—when these funds lapse, do they stay within the Fair Share accounts? Do they go back to General? What happens? MR. KERN: Yeah, and no. The Fair Share money stays in the Fair Share account, so that's one of the good things. When you see it lapse, it's not like you lost that opportunity or the funds disappeared. It's really a matter of just needing to go back through and reappropriating them, or making sure that they're on the CIP list. It's kind of just going through that original process again. Now I'd say where maybe somebody would have an issue, is if another project had come in and taken those funds, then those funds may not exist because they were used for another Fair Share project. But all of those funds stay within this accounting. CHR KANEALI`I-KLEINFELDER: Okay. Okay, thank you. Yeah, that's all the questions I have, and then seeing no more questions from the Council in Kona. Appreciate your time today. Thank you very much. Page 26 FC-30 March 22,2022 MR. KERN: Thank you. Aloha. CHR KANEALI`I-KLEINFELDER: Yeah. Okay, we have a motion on the floor to close file on Communication 664, all in favor? Vote on Comm. 664: The motion to close file on Comm. 664 was carried by Filed the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. CHR KANEALI`I-KLEINFELDER: Mr. Clerk, let's just go from the top. I think that takes care of most of the people who Zoomed in today, unless you want to know where everyone is. Return to Order The Chair directed the Committee to return to the order of business. of Business: COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. (Note: Items in this category were taken up previously, out of order.) Comm. 30.23: REPORT OF FUND TRANSFERS AUTHORIZED: FEBRUARY 1 — 15, 2022 From Controller Kay Oshiro, dated February 17, 2022. Vote on Comm. 30.23: Mr. Inaba moved to close file on Comm. 30.23. Filed Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Richards — 1. Excused: None. Comm. 30.24: REPORT OF FUND TRANSFERS AUTHORIZED: FEBRUARY 1 — 15, 2022 From Controller Kay Oshiro, dated February 22, 2022. Page 27 FC-30 March 22,2022 Vote on Comm. 30.24: Mr. Inaba moved to close file on Comm. 30.24. Filed Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder–8. Noes: None. Absent: Committee Member Richards – 1. Excused: None. Comm. 30.25: REPORT OF FUND TRANSFERS AUTHORIZED: FEBRUARY 16 –28, 2022 From Controller Kay Oshiro, dated March 3, 2022. Motion to Close File: Mr. Inaba moved to close file on Comm. 30.25. Seconded by Ms. Lee Loy. CHR KANEALI`I-KLEINFELDER: Council Members, discussion? MR. INABA: Yes, Chair. CHR KANEALI`I-KLEINFELDER: Mr. Inaba, go ahead. MR. INABA: Yeah, real quick. If somebody is there from Finance, or if Police is here, I just want to make sure we're understanding it because we're moving $1 millionoh, we're not moving we're being reported to that$1 million was moved, so I just want to make sure we have it—the story correct here. (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) CHR KANEALI`I-KLEINFELDER: Ms. Sako is here to answer your questions. MR. INABA: Thank you, Deanna. MS. SAKO: Hi. So you're talking about the transfer, the first transfer, yeah, on that report? MR. INABA: Yes. MS. SAKO: I think it's the first one. So as you might recall when we're doing the budget, all of the recruit positions are actually in the admin. services section, but they're actually funded by the vacancies in the various divisions of the Police Department. So this may or may not be the only transfer they have to do, but Page 28 FC-30 March 22,2022 they're moving those salaries and wages to cover the recruits that are under admin. services. MR. INABA: Okay, and then typically once they're pau with recruit class, do we see them go back to these accounts in which the funds came or it's just where the need is based in the department at that time? MS. SAKO: So then once they finish, yes their training, they will be transferred into the various vacant positions that are throughout the County and all the districts, and then the salary is there, as well. So when you see the budgeted positions, it says, "Held for recruit," and then if the position is filled before the end of the year,part of that salaries and wages would continue to remain in that district. MR. INABA: Okay, so not necessarily it will go back to these fund accounts, from which the funds are being pulled right now. It's just where the need is at the time, they are—gradually that's where they're going to be placed, right? MS. SAKO: Yes, correct. MR. INABA: Okay, thank you. And then one more question, the next one for DPW (Department of Public Works), $280,000 from Automotive OCE(Other Current Expenses), Fuels & Lubricants, to purchasing two one-ton trucks with utility box and crane. I'm just wondering how we had $280,000 of extra gas or other kind monies like that. MS. SAKO: So at the time they did this transfer, that was prior to some of the fuel price increases we've been seeing. So they did transfer the money so that we could put it out bid, and we'll probably have to determine, when the bids come back, if we still have sufficient funding to do that. MR. INABA: Okay. Thank you so much, Deanna. Chair, thank you. I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. Anyone else in Kona? Okay, hearing none. We have the motion on the floor to close file on Communication 30.25. All in favor? Page 29 FC-30 March 22,2022 Vote on Comm. 30.25: The motion to close file on Comm. 30.25 was carried Filed by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Villegas, Richards, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. CHR KANEALI`I-KLEINFELDER: Moving on. Comm. 31.30: REPORT OF CHANGE ORDERS AUTHORIZED: JANUARY 16 —31, 2022 From Finance Director Deanna Sako, dated February 17, 2022, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Motion to Close File: Mr. Inaba moved to close file on Comm. 31.30. Seconded by Ms. Lee Loy. CHR KANEALI`I-KLEINFELDER: Council Members, discussion on Communication 31.30? MR. INABA: Yes, Chair. CHR KANEALI`I-KLEINFELDER: Mr. Inaba, go ahead. MR. INABA: Yes, the Civil Defense, I just I would like to know what this is about. It seems the original contract was for $4.9 million, and we are moving again with another change order. So what exactly are we upgrading here, that is resulting in these change orders? And are we expecting to be finished with this project soon in light of the emergencies that we've been having recently, and in some of the discussions we had too, about notification during these emergencies? (Note: At this time, Finance Director Deanna Sako came forward to address the members of this Committee.) MS. SAKO: I believe this is part of the radio communication system, because Ron is the project manager. But I can follow up and have themI'm not sure about the timeline, if they're almost done or not or if any of it ties into the upgrades at their facility, but I'm pretty sure this is radio system upgrade. So they should be getting almost done. MR. INABA: Okay. And then second one for this report is the website design and posting for Housing, $120,000 was the original contract and we're asking—or reporting on $25,000 additional dollars. What's costing another $25,000 for this? Page 30 FC-30 March 22,2022 So the original $120,000 was websites for various departments, and $25,000 is roughly the cost of one additional website. So I believe Housing was the next one to upgrade their website. So that's the cost of the upgrade in the Housing website, basically. So they used the existing contract. There was kind of a(inaudible). MR. INABA: Okay. Got it. MS. SAKO: Yeah. MR. INABA: So the $120,000, it was for multiple departments? MS. SAKO: Yes. MR. INABA: Not just Housing? MS. SAKO: Yes, correct. MR. INABA: Okay. Thank you. MS. SAKO: Yeah. MR. INABA: Chair, I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. Anyone else? Okay, hearing none. We have a motion on the floor to close file on Communication 31.30. All in favor? Vote on Comm. 31.30: The motion to close file on Comm. 31.30 was carried Filed by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. CHR KANEALI`I-KLEINFELDER: Moving on, sir. Comm. 31.31: REPORT OF CHANGE ORDERS AUTHORIZED: FEBRUARY 1 — 15, 2022 From Finance Director Deanna Sako, dated February 17, 2022, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Page 31 FC-30 March 22,2022 Vote on Comm. 31.31: Mr. Inaba moved to close file on Comm. 31.31. Filed Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Villegas — 1. Excused: None. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. (Note: Res. 345-22 was taken up previously, out of order.) CHR KANEALII-KLEINFELDER: Bill 139, sir. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Order of Resolutions. (Note: Bill 141 was taken up previously, out of order.) Bill 139: AMENDS ORDINANCE NO. 21-38, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2022 Increases revenues in the Federal Grants —Mainstream Voucher Administration account($45,000); and appropriates the same to the Office of Housing Other Current Expenses account, for a total appropriation of $51,679. Reference: Comm. 677 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Vote on Bill 139: Mr. Inaba moved to recommend passage of Bill 139 (Approved) on first reading. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Villegas — 1. Excused: None. Page 32 FC-30 March 22,2022 CHR KANEALII-KLEINFELDER: Moving on to Bill 140. Bill 140: AMENDS ORDINANCE NO. 21-38, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2022 Appropriates revenues in the Federal Grants —Home Program—Tenant Based Rental Assistance Fraud Recovery Income account($5,000); and appropriates the same to the Home Program—Tenant Based Rental Assistance Fraud Recovery Income account. Reference: Comm. 678 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Vote on Bill 140: Mr. Inaba moved to recommend passage of Bill 140 (Approved) on first reading. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Villegas — 1. Excused: None. Bill 145: AMENDS ORDINANCE NO. 21-38, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2022 Increases revenues in the Fund Balance from Previous Year account ($735,600); and appropriates the same to the following accounts: Planning Other Current Expenses ($110,000), Transfer to Sewer Fund($55,000), Transfer to Solid Waste Fund ($106,000), Transfer to Golf Course Fund ($15,000), and Provision for Compensation Adjustment—General ($449,600). Funds would be used to cover the cost items agreed to between the County and the United Public Workers Bargaining Unit 1 and employees excluded from Bargaining Unit 1, and to cover other unanticipated costs that have arisen throughout the year. ; and Bill 146: AMENDS ORDINANCE NO. 21-38, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2022 Appropriates revenues in the Transfer from General Fund account($55,000); and appropriates the same to the Wastewater Salaries & Wages account. and Page 33 FC-30 March 22,2022 Bill 147: AMENDS ORDINANCE NO. 21-38, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2022 Appropriates revenues in the Transfer from General Fund account($106,000); and appropriates the same to the following Salaries & Wages accounts: Landfills ($92,000) and Pu`uanahulu West Hawaii Landfill ($14,000). ; and Bill 148: AMENDS ORDINANCE NO. 21-38, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2022 Appropriates revenues in the Transfer from General Fund account($15,000); and appropriates the same to the Golf Course Salaries & Wages account. Reference: Comm. 690 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Mr. Inaba moved to recommend passage of Bill 145 on first reading. Seconded by Ms. Lee Loy. CHR KANEALII-KLEINFELDER: Council Members, discussion. We do have Deanna here in Chambers. MS. LEE LOY: Yes, Chair, please. CHR KANEALII-KLEINFELDER: Thank you, Ms. Lee Loy. Go ahead. MS. LEE LOY: Thanks, Deanna. MS. SAKO: Good afternoon. MS. LEE LOY: Thanks. You know, I'm tracking what's left in Fund Balance, and so it's hard because we don't have a monthly budget summary. So do we know where we are as far as what's left in Fund Balance? MS. SAKO: Well, the only other amendments that we've made is the one that came through last time, that had work comp. and various accounts on it. As I mentioned at last Finance Committee, when you guys had the BU-1 (Bargain Unit 1) costing in front of you, that was something that, you know, we had not anticipated. You know, we were expecting zero cost for the current year. So that's what the bulk of this transfer is for. And there's a little bit for Planning, for the General Plan. Page 34 FC-30 March 22,2022 MS. LEE LOY: Yeah, so that wasoh, okay. So that's what Planning OCE is for. The $110,00 is for overtime related to ? MS. SAKO: Yeah. Overtime or contract cost. But they definitely want to get moving on that again. MS. LEE LOY: Okay. Okay, I yield at this time. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Lee Loy. Anyone else? MR. INABA: Yeah, Chair. CHR KANEALI`I-KLEINFELDER: Mr. Inaba, go ahead. MR. INABA: Okay. So just to clarify, Deanna, those four, the Sewer Fund, Solid Waste, Golf, and the last one, are like kind of we don't have a choice, right? Those are just unexpected (inaudible). MS. SAKO: Right, that was the BU-1 Collective Bargaining Agreement, and does add up to the amount that was on the costing that you guys forwarded to Council at the last Finance Committee meeting. MR. INABA: Okay. Do we have anybody from Planning in this Zoom right now? CHR KANEALI`I-KLEINFELDER: If you give us about 30 seconds. Not currently on Zoom, but usually they're watching. We can get him on if you need him. MR. INABA: I just want to know. I'm sure there's funds already that have been allocated for the General Plan getting done. And what exactly we're doing with this other $110,000, and what it's going to. CHR KANEALI`I-KLEINFELDER: Okay. We'll try and get Zendo on for you, Mr. Inaba. CHR KANEALI`I-KLEINFELDER: Clerksorry, Mr. Henricks? MR. HENRICKS: Yes, sir? CHR KANEALI`I-KLEINFELDER: One of members of staff said the meeting had crashed online. Is that looking good? We're looking good? MR. HENRICKS: I don't have any indication of that at this point and time. Page 35 FC-30 March 22,2022 CHR KANEALI`I-KLEINFELDER: Okay. MR. HENRICKS: Are we referring to the livestream of the meeting? CHR KANEALI`I-KLEINFELDER: Yes. But the staff here in Hilo is saying that it's back up, we're all good. MR. HENRICKS: Would you like to take a recess, and perhaps at that time somebody from Planning could be contacted, as well? And take out two birds with one proverbial stone? CHR KANEALI`I-KLEINFELDER: I think that would proverbial of us. MR. HENRICKS: Okay. CHR KANEALI`I-KLEINFELDER: Yeah, I was thinking of MR. HENRICKS: We can check into the livestream. I know that Mr. Inaba had a question for Planning. CHR KANEALI`I-KLEINFELDER: Agreed. Agreed. Let's do a five-minute recess. We're in recess. MR. HENRICKS: Thank you. CHR KANEALI`I-KLEINFELDER: Yeah. Recess: At 2:18 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 2:22 p.m. CHR KANEALI`I-KLEINFELDER: Okay, we're going to get started again. I'm calling this meeting out of recess. Mr. Kern was able to join us online. (Note: At this time, Planning Director Zendo Kern came forward to address the members of the Committee.) MR. KERN: Sorry, Mr. Chair. Did I missI think I've might have missed what you said. CHR KANEALI`I-KLEINFELDER: No, I just called us out of recess. But we're waiting for Kona so they can hear us. MR. INABA: Hi, Chair. Yes, do I have the floor? It's Holeka. Page 36 FC-30 March 22,2022 CHR KANEALI`I-KLEINFELDER: Okay. Mr. Inaba, yeah, go ahead. We are out of recess. Mr. Kern has joined us via Zoom, so please proceed with your questions. MR. INABA: Thank you. Hi, Director Kern. Just a question regarding this bill. It's allocating funds into your OCE for $110,000,but there's no explanation. Deanna said it was related to the General Plan, but I wanted to hear from you directly, and know as well, what funds have already been expended for the General Plan. And if we're probably going to need more or—where are with that? MR. KERN: Good afternoon. Thank you for the opportunity. As a new current Planning Director here, again I want to apologize to the Chair and to the committee as well as Deanna, I would plan to be here; I didn't realize it was actually happening at this meeting. So this request was for an update on the data and the metrics from SMS Consulting Services. And so we're deep into the General Plan right now and as you know, the General Plan update's been ongoing. And so having started, say five or six years ago, there were various assumptions and trends and data that were set forth earlier on that some of the plans is being based off of. As we're getting into it, we're looking at some of these trends; and because of the age of them, not so sure how accurate they are anymore. So to make it the most informed plan we need to update this data, and that requires this company, SMS Consulting, to go through and update that data. Originally the proposed charge was closer to $250 million, and we spoke with them and negotiate it down closer to around the $110,000 mark. So I feel like that's, while still expensive we did our diligence to make sure that we're fiscally responsible in that. Also questioned do we really need it and the consensus is that we do need it, so we're basing off of the most current data that we have. So that's request is in front of you for now. Over the years I have some accounting I can share with you. Currently we still around $330,000 encumbered for the General Plan, but that's pretty much all allocated to the consultant that was hired to help with that. So they're the ones going through and will be doing, you know, the updates, and map revisions, all the rest of it as we kind of complete the drafts. And they're still some money allocating to Hastings, or some public outreach. Prior to that, we have expenditures that range you know, some of the bigger ones in GP Implementation Community Engagement Public Education, from—for 2019 to current, and I would say current would be primarily prior to this administration. There was $145,000 spent there. Community bid software, which is a scenario planning. There was around $93,000 spent there. Fiscal Page 37 FC-30 March 22,2022 Impact Analysis, around $5,000. Some other smaller expenditures and General Plan and Comprehensive Review completion, there's around $135,000 there, as well. So I feel overall that I don't think we'll need much more resources on this. As we're getting into though, and continuing to get into it, any of those adjustments would be showing up on the upcoming budget request. Happy to answer any questions. MR. INABA: Okay. So to confirm, this entire $110,00 is going to one contractor to have the data updated, that will help to inform the direction of the General Plan? Is that right? MR. KERN: More or less, yeah. There might be a couple thousand dollars leftover, but yes. MR. INABA: Okay. And then just in terms of a project like the General Plan, should we be seeing an update in terms of change orders, being that we're allocating even more funds moving forward, if we pass this today? Deanna, maybe? MR. KERN: Maybe that's a better question for Deanna. But I would assume—is that change order? (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: I was going to say this is an existing vendor you guys are using, right? MR. KERN: Yes. MS. SAKO: Yeah. Yes, it will be on the change order report in the coming weeks. MR. INABA: Okay. Thank you so much. Chair, I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. More questions from the Council for Bill 145? Okay, hearing none. We have the motion on the floor to forward Bill 145 to Council with a positive recommendation. All in favor? Page 38 FC-30 March 22,2022 Vote on Bill 145: The motion to recommend passage of Bill 145 (Approved) on first reading was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. CHR KANEALI`I-KLEINFELDER: Mr. Clerk, Bill 146. MR. HENRICKS: The remaining bills read in, a motion is required and votes. Motion to Approve: Mr. Inaba moved to recommend passage of Bill 146 on first reading. Seconded by Ms. Lee Loy. CHR KANEALI`I-KLEINFELDER: Council Members, discussion on Bill 146. I did reach out to Director Ramzi Mansour, and I haven't heard back from him yet, but Deanna is here. MS. DAVID: That's just appropriating it within the Sewer Fund, for the BU-1 Collective Bargaining. CHR KANEALI`I-KLEINFELDER: Okay. Okay thank you, Deanna. Any questions, Council Members? Hearing none, we have a motion on the floor. All in favor? Vote on Bill 146: The motion to recommend passage of Bill 146 (Approved) on first reading was carried by the following voice vote: Ayes: Committee Members David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Chung— 1. Excused: None. Motion to Approve: Mr. Inaba moved to recommend passage of Bill 147 on first reading. Seconded by Ms. Lee Loy. Page 39 FC-30 March 22,2022 CHR KANEALI`I-KLEINFELDER: Okay, and then real quickly, Deanna. This is ? MS. SAKO: This is also BU-1, appropriating the transfer that was in Bill 145. CHR KANEALI`I-KLEINFELDER: Seeing no further discussion from the Council, we have the motion on the floor for Bill 147 to proceed to Council. All in favor? Vote on Bill 147: The motion to recommend passage of Bill 147 (Approved) on first reading was carried by the following voice vote: Ayes: Committee Members David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Chung— 1. Excused: None. CHR KANEALI`I-KLEINFELDER: And finally, a motion please on Bill 148? Vote on Bill 148: Mr. Inaba moved to recommend passage of Bill 148 (Approved) on first reading. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. CHR KANEALI`I-KLEINFELDER: That brings to the end of our agenda. ADJOURN- There being no further business, at 2:30 p.m., Ms. Lee Loy moved to adjourn MENT: the meeting. Seconded by Mr. Inaba and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. Page 40 FC-30 March 22,2022 CHR. KANEALI`I-KLEINFELDER: We are adjourned. Approved: Mr. Matt Kaneali`i-' leinfel er, Chair (Date) Finance Committee MK/na Page 41