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HomeMy WebLinkAboutMIN FC 2022/05/03 2020-2022 Committee on Finance 34th Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawaii May 3, 2022 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 2:30 p.m., in the Council Chambers, Kona, by Ms. Heather L. Kimball, Acting Chair. ROLL CALL: Present: Ms. Heather L. Kimball, Vice Chair Mr. Aaron S. Y. Chung, Member Ms. Maile Medeiros David, Member Mr. Holeka Goro Inaba, Member Ms. Susan L. K. Lee Loy, Member Mr. Herbert M. "Tim" Richards III, Member Absent& Excused: Mr. Matt Kaneali`i- Kleinfelder, Chair Ms. Ashley L. Kierkiewicz, 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 provide comment, and came forward when called by the Chair: Paul Norman: Bill 160 (Comm. 750). (representing Neighborhood Place of Puna and the Community Alliance Partners) Tiffany Edwards Hunt: Bill 159 (Comm. 746). Tam Hunt: Bill 159 (Comm. 746). Pane Meatoga: Bill 160 (Comm. 750). Kristen Alice: Bill 160 (Comm. 750). (representing Hope Services) FC-34 May 3,2022 ACTING CHR. KIMBALL: Thank you all the folks out there in our remote testimony sites. Thank you for those that called in to testify or showed up in person. With that, I will close public testimony, and we will move to the business of the day, Mr. Clerk. COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 30.27: REPORT OF FUND TRANSFERS AUTHORIZED: MARCH 16 —31, 2022 From Controller Kay Oshiro, dated April 4, 2022. Vote on Comm. 30.27: Mr. Inaba moved to close file on Comm. 30.27. Filed Seconded by Ms. David and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball —6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder —3. Excused: None. ACTING CHR. KIMBALL: Next item,please. Comm. 31.32: REPORT OF CHANGE ORDERS AUTHORIZED: FEBRUARY 16 —28, 2022 From Finance Director Deanna Sako, dated April 5, 2022, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Vote on Comm. 31.32: Mr. Inaba moved to close file on Comm. 31.32. Filed Seconded by Ms. David and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball —6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder —3. Excused: None. ACTING CHR. KIMBALL: Next item,please. Page 2 FC-34 May 3,2022 Comm. 31.33: REPORT OF CHANGE ORDERS AUTHORIZED: MARCH 1 — 15, 2022 From Finance Director Deanna Sako, dated April 5, 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. 31.33. Seconded by Ms. David. ACTING CHR. KIMBALL: Any discussion? MR. INABA: Yes. ACTING CHR. KIMBALL: Council Member Inaba. MR. INABA: Yes,just what is this, Contract C-006401? I see a big negative change amount. If we could just have an explanation for that, as it relates Council Member Lee Loy's Kalanianaole reconstruction? (Note: At this time Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: Good afternoon. I'm not sure if anybody from DPW (Department of Public Works) is in Kona Chambers? MR. INABA: No. MS. SAKO: But if not, I'm happy to try and provide an explanation. So this was the project that we ended with one vendor and then we started with another vendor, so this is the liquidation or the end of the first contract, And then there was a new contract to complete the construction, so the project is still ongoing. We just changed vendor. MR. INABA: Okay. Thank you, Deanna. MS. SAKO: Um-hum. ACTING CHR. KIMBALL: Thank you, Director Sako. Any other discussion? Seeing none, all of those in favor of closing file on Communication 31.33? Page 3 FC-34 May 3,2022 Vote on Comm. 31.33: The motion to close file on Comm. 31.33 was carried Filed by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball —6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder —3. Excused: None. ACTING CHR. KIMBALL: Next item,please. Comm. 31.34: REPORT OF CHANGE ORDERS AUTHORIZED: MARCH 16 —31, 2022 From Finance Director Deanna Sako, dated April 5, 2022, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Vote on Comm. 31.34: Mr. Inaba moved to close file on Comm. 31.34. Filed Seconded by Ms. David and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball —6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder —3. Excused: None. ACTING CHR. KIMBALL: Next item,please. Comm. 84.5: THIRD QUARTER REPORT OF PERSONS EMPLOYED UNDER A CONTRACT FOR LESS THAN 90 DAYS: JANUARY 1 —MARCH 31, 2022 From Human Resources Director Waylen L. K. Leopoldino, dated April 1, 2022, transmitting the above report pursuant to Section 2-12.5 of the Hawaii County Code. Vote on Comm. 84.5: Mr. Inaba moved to close file on Comm. 84.5. Filed Seconded by Ms. David and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball —6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder —3. Excused: None. Page 4 FC-34 May 3,2022 ACTING CHR. KIMBALL: Next item please. Comm. 460.2: THIRD QUARTER REPORT OF UNCAPITALIZED DONATIONS: JANUARY–MARCH 2022 From Finance Director Deanna Sako, dated April 14, 2022, transmitting the above report pursuant to Resolution 176-21. Vote on Comm. 460.2: Mr. Inaba moved to close file on Comm. 460.2. Filed Seconded by Ms. David and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball –6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder –3. Excused: None. ACTING CHR. KIMBALL: Next item,please. Comm. 751: PROGRESS REPORT: HAWAII COUNTY COST OF GOVERNMENT COMMISSION From the Cost of Government Commission Chairperson Michael J. Konowicz, dated April 6, 2022. Motion to Close File: Mr. Inaba moved to close file on Comm. 751. Seconded by Ms. Lee Loy. ACTING CHR. KIMBALL: I'm not sure if we have anyone in Hilo Chambers to say anything about this report, or on Zoom. No? Okay. Any discussion from my colleagues? Council Member Richards. MR. RICHARDS: Yeah, we have a brief summary, but obviously we need a narrative explanation of how we're going. I don't know, yeah, can we maybe put it on the table and postpone till next if we don't— ACTING on'tACTING CHR. KIMBALL: Why don't suggest that we table this for now. Perhaps someone can see if there is anybody available to present this report to us before we end business today, then we can take it up at that point? MR. RICHARDS: We can put it on the table till the end of the meeting? ACTING CHR. KIMBALL: Okay. Motion to put Communication 751 on the table, all those in favor? Page 5 FC-34 May 3,2022 Vote on Motion Mr. Richards moved to table Comm. 751. Seconded by to Table: Ms. Lee Loy and carried by the following voice vote: (Approved) Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball —6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder —3. Excused: None. Comm. 769: REQUESTS THE FORMATION OF AN AD HOC COMMITTEE FOR THE PURPOSE OF EVALUATING PROPOSED REAL PROPERTY TAX-RELATED LEGISLATION From Council Member Herbert M. "Tim"Richards III, dated April 19, 2022. Motion to Close File: Mr. Richards moved to close file on Comm. 769. Seconded by Ms. Lee Loy. ACTING CHR. KIMBALL: Council Member Richards. MR. RICHARDS: Thank you, Chair. This stems from the conversation we've had and the swirling going around our budget and our budgetary process coming forward. And I think it's my annual request to formulate a ad hoc committee to have a conversation. I'm trying to put all of our revenue streams and stack them up against our expenditures to come up with a well-crafted thought-through process, where we can get together and have a reasonable way to approach our budgetary process. Now, I did put this before Corporation Counsel, and Judge Strance is here. Judge, could you just fill us in a little bit? We've had some long conversations about this, and Judge Strance has brought some thoughts up. I am a very strong proponent of trying to get this done, but I do understand that there are some timing issues. So Judge, could you please enlighten us a bit? (Note: At this time, Corporation Counsel Elizabeth Strance came forward to address the members of the Committee.) MS. STRANCE: Good afternoon, Elizabeth Strance, Corporation Counsel. So Council Member Richards approached me about this idea, and my initial response was "great,"until we started working through the logistics thank you, Chair David. You know, once you create one of these ad hoc committees, you can't talk about anything that is being covered by the ad hoc committee, and your Page 6 FC-34 May 3,2022 timing for budget review would make the creation of that committee very cumbersome, if not impeding your ability to review the Charter. One of the things that we did talk about, and we have to sketch through again, timing matters, is that the Charter does well for scheduling a special or limited meetings. So if the Council wanted to set aside extra or other time to explore ways and ideas to look at the budget as it's going forward, the budget process, that might be a process that you folks could employ. I'm just not quite sure about the timing. But under limited meetings or under the Sunshine Law, if you're going to just review part of an agenda item, you can limit testimony just to those matters so that if you set a special meeting up for limited and targeted purposes, there would be ways to manage that under the Sunshine Law and still allow yourselves to have some other mechanism to have that evaluative process. So those are some of the things that we tossed around. We have to look at the timeframe, maybe sit down with the Clerk to really look at that given notice requirements. But it seems that what Council Member Richards wanted to be able to do was present some analysis and ways, that looking at the budget, so that when you have your next round of budget hearings, that there are some thoughts or ideas about how to collect and evaluate the information that you're provided. But it doesn't appear that an ad hoc committee would work,just in terms of timing; because as you know, the committee has to meet, the committee has to submit a report. And then the committee has to have deliberation, and I think that would probably take you through your budget process time period. MR. RICHARDS: Thank you, Judge. And in light of this, I wanted this communication to set up the ad hoc, I do appreciate the concern for having the ad hoc, which puts essentially a budgetary conversation on hold until we come back. But we can't even start an ad hoc conversation until we have the certified values, so we're kind of stuck in a timeline issue. So given that circumstance, and I do appreciate what Judge Strance has said about having potentially a special meeting, Chair David, what I'd like to offer up, and I can discuss this further with you, I've done a lot of work on the budget, and I'm looking at our tax rates, versus our income stream,versus our expenditure stream. And in a special meeting what the intention would be to do is have a talk-story about this. We'll look at all our revenue streams, all of our potential expenditures, and try and put some balance into this. And what I could do, if I understand correctly from Judge Strance, is I would be able to present my spreadsheet with the group, and we could collectively look at it, play with it and discuss it, but we would not be making any decisions at that. So that special meeting will be strictly informative, and then we go on to another Page 7 FC-34 May 3,2022 meeting, we're actually discussing the budget. And if I understand correctly, Judge, that was a suggestion that might work for us. Is that correct? MS. STRANCE: I'm sorry, it might. If I just could with Jon (Henricks) a little bit in terms of the timeline for it. But that was a thought and possibility, depending on what your timeline is. MR. RICHARDS: And so I can articulate this a little bit better, Chair David. But the idea is then—we don't have an ad hoc, so we're not reporting back, so we don't have to delay any conversations, but we can mostly put it on the table, because that means something here. But we can discuss different aspects, and it would be compliant with our Sunshine Law as well as getting everybody in, get the collective wisdom of the group so we can talk story about, and see if we can come up with some ideas. That may make us—allow us to make some good decisions. Chair, I'd like to hear back from you on that. MS. DAVID: Thank you, Mr. Richards; and thank you, Judge Strance, for that rundown. Ms. Kimball, can I address Mr. Richards. ACTING CHR. KIMBALL: I'm sorry, go ahead. MS. DAVID: I have a question for Mr. Richards, if I can address him. ACTING CHR. KIMBALL: Yeah, go ahead. MS. DAVID: Thank you. So what you're saying is we would be holding a regular Council meeting, but call it a special meeting to discuss on the agenda in general? MR. RICHARDS: Correct. MS. DAVID: Is that what you're asking for? MR. RICHARDS: Correct, having a special meeting, that we specifically discuss the budget as it pertains—and as I understood, I would essentially present what I've been working on to the Council as a whole; so thereby, we agendize it. We can put it on the table. We stay compliant with everything. We do not tangle up in the procedural timelines of an ad hoc. And again, informational and discussion, because I don't see any other way to get this done. And so I'd essentially be sitting probably out there giving a conversation, and we can play with the spreadsheet collectively as a unit. MS. DAVID: Okay. The procedurally then, I need to check Clerk Henricks in calling a special meeting. Do we have to identify what that—the parameters of Page 8 FC-34 May 3,2022 the special meeting will be, or will it be just two agenda items, meaning our Operating Budget and our CIP (Capital Improvement Project)budget that would be on the agenda? We're just having an extra budget meeting among the Council Members. MR. HENRICKS: We currently have scheduled a Special Meeting May 19 to address the new, not new, more accurate, if you will, Draft 2 of both budgets. MS. DAVID: Right. MR. HENRICKS: And it sounds like that is really the scope of what Mr. Richards' discussion would be, would be everything that are related to those budgets: tax rates, revenues, all of those things which are part of those budgets. And so my question would be, did you anticipate wanting to have that meeting earlier than the 19'', and then it would be how much earlier? Because if we're going to put the budgets, the Draft 2s on the agenda, we have to have them in hand at least six days before that special meeting. And then in order to conduct the special meeting on the 19th, we would need to dispose of those matters, with six days from then, to get that on for the special meeting of the 19th, to make sure those things can happen, according to Chapter 92. Part of the reason why we scheduled the meeting on the 19'', was part of that is out of convenience because we have (inaudible), but also to give the membership time to develop amendments to the budgets that come in, because that won't come in till the 5h (May), correct, the Draft 2. So if it was the will of the Council to hold the special meeting earlier than that, we could do that most likely, given we have enough time again, to post after receiving the Draft 2s, because I understand there's not much value to doing it prior to, and to kind of expedite our schedule, and maybe just not have the meeting on the 19'', and having another meeting after the 19''. We're not beholden to having that meeting that's on our calendar on the 19'', but it would decrease the amount of time that the membership would have to develop amendments, between receiving the Draft 2 and having that special meeting. So again going back, if the purpose of that special meeting is not to introduce amendments but to have a workshop of sorts, and talk, then that would be the understanding, that barringI don't think it would prohibit Council Members from introducing amendments because I don't think anything could. As long as you have the budgets on its amendmentoh, excuse me, the budgets on an agenda, then they're open to amendment. It would just be a matter of whether or not we could process those things in a timely manner, or if there would just be an understanding that's not what's going to happen that day. Page 9 FC-34 May 3,2022 And then we would need to probably—we probably wouldn't be able to have the meeting on the 19'h that is scheduled currently. We would have to push that back, which would then maybe push back the meeting that's scheduled for the second of June, I believe, which is normally when we conclude the budget operations. That was a lot to say, but I think I covered most of it. MS. DAVID: Yeah. No but that certainly explains our timeline and the fact that we do have a special meeting, but if we do it earlier. MR. HENRICKS: Right. So the bottom—in summary, we can change the timeline as long as all the expectations and understandings that what we could do on these days MS. DAVID: Right. MR. HENRICKS: Is hopefully understood, prior to changing the timeline, so that nobody, either the membership or the administration, has expectations that cannot be met for these particular meetings. ACTING CHR. KIMBALL: So let me interject here and just take a pause on the logistical conversation. Council Member Lee Loy has been waiting patiently to make a comment. Why don't pass it on to her real quickly, and then revisit that. MS. DAVID: Chair, I yield. ACTING CHR. KIMBALL: Council Member Lee Loy. MS. LEE LOY: Thank you. I was really biting at the bit here. Maybe, Judge Strance, if you could stay, because you outlined something for us. But I dug into our Rules and Procedures, Rule 2, which provides for special meetings, But we also have Rule 8, which allows for a Committee of the Whole, and I'm wondering out loud if that could become that workshop piece, as it's been kind of discussed where we would be able to look specifically at some spreadsheet information of all the information that's being poured into the budget. The Committee of the Whole is made up of all of all the Council Members chaired by our Chair or whomever we decide. But I'm just wondering if that would be a possible vehicle to achieve what Council Member Richards is trying to have, which is a very open workshop and discussion about everything that's filtered into our budget, but still having the timelines to actually address the budget itself and any amendments that go with it. MS. STRANCE: I think your Rules and the Sunshine Law provide a couple of different avenues and opportunities to try to have these kinds of meetings and still comply with the Sunshine Law. You know, there's the Committee of the Whole, Page 10 FC-34 May 3,2022 there's limited meetings, and there's special meetings, so there are several different vehicles that I think would be available to you. I think we just have to make sure that we have the timeframe down. You know, these budget meetings tend to be long anyway. So the idea the suggestion of like having Councilman Richards submit a communication, it gets discussed, as part of it. It probably may not be that helpful because it would be in real time with the discussion of the budget, and an otherwise, awfully long day. But I think there may be a couple of different avenues. I would just want to be able to sit with Jon a little bit to make sure that we have our timeline and you know, if one vehicle allows us to move more quickly than another vehicle, then we could call it that. But each of them are compliant with the Sunshine Law. MS. LEE LOY: Thank you for that response. You know, I'm open to this idea of having this conversation, a workshop. I think it will bring a lot of clarity for the business decisions we have to make on the budget. So this you know, this focus really is kind of an open workshop for us. I like that idea. I would support something like that, Mr. Richards. I just want to throw this out,just in this moment; if you would be willing to postpone or table this particular communication until after we hear Resolution 291-22. Because there is an analysis that I hope to walk us through, and that's related to the tax credit, which I think will fill in and provide us a lot of color, when it comes to what we can and cannot do when it comes to the budget, along with how to appropriately provide—if we're looking for a relief to our constituency in a very thoughtful way, I think that discussion that we'll have on that particular resolution might fill out this communication. That's what I'm putting on the table. Thank you, Chair. ACTING CHR. KIMBALL: So if I'm hearing you correctly, that you want to make a motion to table Communication 769 at the moment, and revisit? MS. LEE LOY: For the moment. I mean, if that's something Mr. Richards is willing to entertain. I just don't want this to die on the vine, or move in a manner, when we could actually fill out some of that conversation with the next item on the agenda. ACTING CHR. KIMBALL: Council Member Richards, would you like to ? MR. RICHARDS: Okay, thank you. Because if you allow the motion, then we couldn't actually respond to the question. The short answer is yes. I'm trying to seek a way forward, where we can have a constructive conversation about how we're going to allocate funds going forward, so it's thoughtful. I looked at the timing. In order to make it happen, I was thinking even next week, I mean quick. Page 11 FC-34 May 3,2022 And I would work very hard to get the spreadsheet pau so we can get it printed out, so we can get it done, assuming that everything is flowing timeline on the 5h. So that being said, I'm very happy to table this as well, right now, to talk story, because any way forward—and I am not locked into any one way to get this conversation going, so if there is a way to have better conversations, let's explore them. So I'm very happy to move to table Communication 769 until the end of the meeting. Motion to Table: Mr. Richards moved to table Comm.769. Seconded by Ms. Lee Loy. ACTING CHR. KIMBALL: Any discussion on the motion to table? Council Member Inaba. MR. HENRICKS: I don't think this is a debatable motion. I could double-check real quick. MR. INABA: All right. ACTING CHR. KIMBALL: I think you are correct, Mr. Clerk. MR. HENRICKS: It is not. MR. INABA: I yield the floor. Vote on Motion The motion to table Comm. 769 was carried by the to Table Comm. 769: following voice vote: (Approved) Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball –6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder –3. Excused: None. MR. HENRICKS: Madam Chair, may I just note that the Chair of the Cost of Government Commission is available on Zoom. ACTING CHR. KIMBALL: Yes, can I have a motion to remove Communication 751 from the table? Page 12 FC-34 May 3,2022 Vote to Remove Mr. Richards moved to remove Comm. 751 from the table. Comm. 751 from Table: Seconded by Ms. Lee Loy and carried by the following (Approved) voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball –6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder –3. Excused: None. ACTING CHR. KIMBALL: Council Member Inaba, was it you that had the question on this? We have with us the Chair of the Cost of Government Commission, Mr. Konowicz here on Zoom. Thank you for joining us, Mr. Konowicz, on short notice. (Note: At this time, Cost of Government Commission Chair Michael Konowicz came forward to address the members of the Committee.) MR. KONOWICZ: Aloha. MR. RICHARDS: Chair, do you want me to go ahead? ACTING CHR. KIMBALL: Yes. MR. RICHARDS: Thanks, Mr. Konowicz. I appreciate you jumping on real quick just to give a quick update of where we are at Cost of Government. So please go ahead. MR. KONOWICZ: Sure. So what the purpose of the communication was, was just to bring Council up to speed on where we are in our process. We haven't— we're aven'twe're not in a stage where we're able to recommend or report on anything. We've broken out the responsibilities of the Commission into three phases, where the first is a discover phase; the second is an investigation phase; and then the last is a problem solving and strategy phase; with the goal of providing to Council a final report by November with our findings and we would also share that with the Mayor. So we're marching forward in our discovery process. We've been meeting with various department and division heads. We've had some great meetings where the public has also been engaged. The purpose of the communication was just to let you know that the Commission has identified some top-line priority areas where we are focused our attention on. And if any of you have additional direction for us or if there are concerns from your constituents, we want it to be a Page 13 FC-34 May 3,2022 part of the process and our due diligence in getting that feedback from you and your constituents so we're properly focused as we move forward into an investigation phase and then finally the problem solving and strategy phase by the end of the year. MR. RICHARDS: Thank you, Mr. Konowicz. I think I can speak for the Council in saying we appreciate the communication, letting us know how you've structured, how you're setting it up, and also the offer of saying, "Hey, if someone's got a direction,please contact us so we can head in that direction." I do like the idea of how you're structuring this, meaning that communication coming forth and what you're going to be working on to get those deliverables that we're eagerly anticipating. So with that, Chair, I'll go ahead and yield. Thanks, Mr. Konowicz. MR. KONOWICZ: Thank you. ACTING CHR. KIMBALL: Thank you, Council Member Richards. Any other discussion or questions? Seeing none, thank you again, Mr. Konowicz, for coming short notice. I did have one request. I noticed that you have information technology as one of your primary focus areas. I'm not sure if this is under that definition, but I certainly would encourage the commission to consider data management as a subtopic within that area across all of the different County departments. Something to consider with regard to efficiency. MR. KONOWICZ: Could you elaborate a little more on what data management you'd like us to take a look at? ACTING CHR. KIMBALL: Yeah, specifically ensuring that the County departments who all have their own data management systems design and develop those systems so that there are common syntaxes and the ability to communicate across departments. Share relative information for example. Real Property Tax is able to communicate with Planning, who's able to communicate with DPW (Department of Public Works), that is able to communicate with Fire. That's one of the key things with breaking down the silos, which has been a priority of our Mayor. One of the first places you start with that is breaking down the information silos between the different departments. Does that clarify what I'm asking you to do better? MR. KONOWICZ: Yes, that's very helpful. Thank you very much. ACTING CHR. KIMBALL: Great, thank you. And thank you again, for being here. With that, we'll move the vote on the item which is Communication 751. All of those in favor of closing file, please say "aye." Page 14 FC-34 May 3,2022 Vote on Comm. 751: The motion to close file on Comm. 751 was carried Filed by the following voice vote: Ayes: Committee Members Chung, David, Lee Loy, Richards, and Acting Chair Kimball —5. Noes: None. Absent: Committee Members Inaba, Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder—4. Excused: None. ACTING CHR. KIMBALL: Thank you again, Chair, for being here. I appreciate your time. Can we now move on to the next item of business, which I believe is Resolution 291-22. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 291-22: AUTHORIZES A ONE-TIME, REAL PROPERTY TAX CREDIT IN FISCAL YEAR 2022-2023 FOR ELIGIBLE PROPERTIES IN THE"HOMEOWNER" CLASS Authorizes the Finance Director to issue a $250 credit to be applied to the August 2022 real property tax bill of eligible property owners, except for those who failed to pay any portion of due taxes, properties assessed at the minimum tax rate, or properties sold during the taxable year. Reference: Comm. 558 Intr. by: Ms. Lee Loy Postponed: January 4 and April 19, 2022 (Note: There is a motion by Ms. Lee Loy, seconded by Mr. Richards, to recommend adoption of Res. 291-22.) ACTING CHR. KIMBALL: Thank you, Mr. Clerk. Council Member Lee Loy. MS. LEE LOY: Thank you, Chair. For the rest of my colleagues, I believe Judge Strance sent us an attorney-client communication; and if there are no objections to that communication, I wanted to have Judge Strance come forward and walk us through that analysis so that, you know, not only for us, but the public can understand why we're going to be making some of the decisions going forward, not only with this resolution, but as Mr. Richards discussed in a previous communication, about tax-related legislation, one of the goals was a tax credit. And so I just thought it would be wonderful for Judge Strance to come forward and share that analysis. So my first question, Chair, is if there any objections to Judge Strance to share this attorney-client communication that she provided to all of the members of the Council? Page 15 FC-34 May 3,2022 ACTING CHR. KIMBALL: Thank you, Council Member Lee Loy. Mr. Clerk, is there any informal procedure to affirm consent to share a communication with the Corporation Counsel? MR. HENRICKS: This is a relationship that is established with your Corporation Counsel and you as the client, so it's between your Corporation Counsel and you as the clients, each member of the Council. In other words, not my kuleana. ACTING CHR. KIMBALL: All right. Well, I guess I'll just have to I'll ask if there any objections to Corporation Counsel Strance sharing with us the contents of the communication provided to the Council regarding this resolution, any objections? Okay, seeing none. Judge Strance, I invite you forward to respond to Council Member Lee Loy's question. Thank you. (Note: At this time, Corporation Counsel Elizabeth Strance came forward to address the members of the Committee.) MS. LEE LOY: Chair, if I may just begin to couch this conversation. Resolution 291-22 was presented to the Council back in January as a potential option to provide relief to our constituency by way of a credit. At that time, we had very limited information about our budget, and just some of the moving pieces related to our budget process, so we put a pin in it. And two weeks ago, had Judge Strance come forward to provide us guidance on if this was the appropriate vehicle or not to provide that. At that time, Judge Strance wanted to take some time to prepare what we have now, is an analysis about one, the appropriate way to provide a credit—well, one, if this was the appropriate vehicle to provide a tax credit, and lucky enough she provided us a little bit more fill as to the potential of providing a credit and what the appropriate way to do that. But she also provided an analysis of all the different regulations and/or statutes or laws that would applicable. So if it's okay, Judge Strance, if you don't mind walking us through that analysis, and where we landed for this particular resolution. MS. STRANCE: Thank you. Elizabeth Strance, Corporation Counsel. So I was asked to evaluate whether the Council could issue a tax credit, and then whether the vehicle of a resolution was the correct vehicle. And what I provided you is can you do it, should you do it, and if you can and you should, how? And so the authority of the County Counsel to deal with real property taxes is actually set forth in the Hawaii Constitution, Article 8, Section 3, where the counties were granted authority to exercise they have exclusive authority to exercise matters related to real property taxes. Page 16 FC-34 May 3,2022 There was a fair amount of debate regarding this provision of the State Constitution, because as originally drafted, the authority granted was the authority to levy taxes, and there were some that felt that they authority to levy taxes may not include the authority to grant tax exemptions. And so the Constitutional Delegation changed the language to include the language that is now in the Constitution, which provides that all functions, powers, and duties related to the taxation of real property shall be exercised exclusively by the counties. So while there's specific discussion about the issue of tax exemptions and levy, it seems clear based upon the discussion that that would also include the authority to grant a tax credit. And so in response to the questions of"can you," the answer would be "yes." And on at least one other occasion, the Council has granted a tax credit, and that is the solar water heater tax credit found in the Code in Section 19-104. The next question is should you, and this was alluded to a little bit in some other discussions that have come up to the Council, about what actions might the County take and inadvertently trigger payback obligations from federal COVID (Coronavirus Disease) monies received. And so I provided a quote from the United States Treasury, and I also spoke with Deanna Sako, who I believe would be prepared to talk further on that. But essentially the federal government has a consideration for giving jurisdictions money. To get loan forgiveness, the counties cannot take actions that would directly or indirectly offset a reduction, and basically give money back to the citizenry, because they got money from the federal government. I'd like to have Deanna talk a little bit further about that so that I think she may be able to bring a little more clarity about what those triggers are. But the reason that I raise it in the memo that I prepared for you is that you want to avoid unintended consequences. And so it would be my opinion that if the Department of Finance were to conclude that a tax credit would or could jeopardize federal fund forgiveness, then the County should not approve a credit, because to do so would subject the County to a substantial financial obligation to a federal or state government without having undertaken a financial impact assessment or a cost benefit analysis of doing so. The last step that I want to, and this was raised at the last meeting, is whether a resolution is the proper vehicle for affecting a tax credit, and the answer to that is no. I believe that the resolution was written with the Hawaii County Code, Section 19-90 in mind, and that provision of the Code is the provision where tax rates are set, and that is specifically done by resolution. But this is a tax credit and falls with a different category of analysis, and so it would require a bill for ordinance to pass. Page 17 FC-34 May 3,2022 So if anybody has anybody has questions about that, that's the step that I took. I think if the Council is interested in what the financial impact might be, that Deanna or somebody from the Department of Finance would be in a better position to advise you about what the effect might be. MS. LEE LOY: Thank you so much, Judge Strance, for that thumbnail sketch of the analysis. But I do—Deanna? Ms. Sako, if you're available? (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. LEE LOY: You know, Judge Strance laid out, do we have the authority? What I heard is yes, but I also heard the resolution is not the vehicle, but then there's some implications. And so, Ms. Sako, if it's okay, could you please just round out that piece for us related to the funds and how, you know, a credit would have an impact either now or down the road for us? MS. SAKO: Great. So we did get two buckets for money; one was the CARES (Coronavirus Aid, Relief, and Economic Security)Act, and now we're under the ARPA, American Rescue Plan Act. And so in the American Rescue Plan, when the final rule came out, we still are not supposed to have a reduction in revenue. The wording was broadened a little bit, and that we cannot—it wasn't maybe as firm as the interim rule, where we're not supposed to reduce taxes. But we do have to be able to show that the taxes overall were not reduced or that we didn't use our funding to plug that hole. And if there was an economic that helped to increase the taxes, such as increased tax values, that would probably be okay and we could show that. So knowing that this credit was on the table and know that our team has also done an analysis, when we give a credit, it's impacting individual taxpayers; and under the CARES Act were prohibited from helping individual taxpayers pay their bills. We couldn't use any of the funding for that. So putting the two together, I don't think the credit is the right way to go. I think it would be difficult for us to show the Department of Treasury that basically it was an economic increase that offset the taxes. I think later as you guys' progress in the budget process, and if you guys were to let's say reduce tax rates, it would be much easier for us to show Treasury that yes, we reduce the tax rates, but you can see that the values increased, and it would be a fair amount each classification. Because we've already had some issues if the credit was to remain at the $250, where it was more than our minimum tax. We don't want to be in a situation where, you know, we helped individual taxpayers more than others, or maybe, you know, what would we do with that excess credit. Page 18 FC-34 May 3,2022 So we're not sure that a credit is the way to go given the way the rules are currently written with our federal funding. And ultimately our major concern is not can we afford to give a credit this year, it's can we afford to pay back the federal funding, you know, three, four, five years from now when they actually come to audit. CHR. LEE LOY: Thank you so much, Deanna; and again thank you, Judge Strance. You know, for the rest of my colleagues, this really was just—it was an idea using some of the pieces of how we levy taxes to spark this conversation. I feel like it was an incredible teaching moment. I think what I've learned through this is there are tools that we have to actually explore options. You know, listening to our Director of Finance, you know, this idea of maybe dialing back rates. Because, you know, the values of the properties went out, you know, helps us. I think the intention was to really fill out this discussion on taxes. I do just really appreciate the analysis. It helps me think through how we can help our constituency better, and then provide relief, you know, which is what we're all trying to do. You know, if there's any other conversation, but my intention hereon after is to withdraw Resolution 291-22, but any conversation that we want to have I think is helpful. Thank you, Chair. I yield. ACTING CHR. KIMBALL: Thank you, Council Member Lee Loy. Council Member Richards. MR. RICHARDS: Thank you, Chair. This is actually the start of the talk-story that I wanted to have because as we start piecing the puzzle together. Deanna, did you run away? Deanna,just to touch on a little bit. Listening very carefully of what you said. And first of all, a shout out to Department of Finance, because as we went through the CARES funding initially, it was very loose as far as what Treasury was saying we had to do for accountability. Deanna was very specific, and we kept it very, very strict, which it worked out to our advantage because had she not done that we would have run into some trouble, so shout out to Finance for doing that. But up to that question, Deanna, concerning the financing, what is the funding that the County received, again for our public out there? What is that funding? What is the liability of us potentially having to pay that back? MS. SAKO: With the additional funding, we just received $60 million, and the CARES Act was at$80 million. MR. RICHARDS: Okay. So that's a hefty liability for the County, so I appreciate you being very specific about the concerns on this. From your Page 19 FC-34 May 3,2022 perspective and just to reiterate, you said looking back, dialing back the real property tax rates would not violate that, as far as the funding? MS. SAKO: It appears easier for us to show that there was an increased economic benefit and that our total taxes would be going up. We're still going to have to ensure that taxes continue to go up, and we don't decrease them in any way, in total. MR. RICHARDS: Okay, this—okay, I appreciate that, Deanna. Thank you. This is adding clarity to this, so I really appreciate what you're doing. What you're doing, you're talking about all taxes? If we show a reduction in all taxes if we reduce it, is that a concern as a legislative body? MS. SAKO: There is still concern that if we were to reduce taxes, that they will look at it. However, if we can show that we offset it in some other way, I still have concerns about other tax reductions; however, for real property taxes, I believe if we reduce the rates but watched carefully, that in every classification we continue to have increases, that would be helpful, as well. MR. RICHARDS: Okay, thank you. MS. SAKO: But having said that, we still have increased cost as well, so we would have to be able to cover all of those. MR. RICHARDS: Yeah, and I appreciate that, Deanna. This is that juggling that we need to get done to be sure we stay compliant, but still can afford to do what we need to get done because we have a lot of catch-up. Okay, so that's exceedingly helpful for me, even more of a reason to have a talk story about the budget and look at the rates. This has been something I've been working on for probably three or four weeks now. Chair, I'm going to yield now because we have this communication before us, and then I'll come back—or this resolution before us, then I'll come back. Thanks, I yield. ACTING CHR. KIMBALL: Thank you, Council Member Richards. Any further discussion on the resolution? Council Member Lee Loy. MS. LEE LOY: Thank you. I'd like to withdraw Resolution 291-22. Withdraw Res. 291-22: Ms. Lee Loy announced the withdrawal of Resolution 291-22. ACTING CHR. KIMBALL: Thank you, Council Member Lee Loy. And I'll just comment quickly. Thank you for putting something forward that allowed us to have a discussion, and like you said, "Have a teaching moment,"to learn a little Page 20 FC-34 May 3,2022 bit more about the ins and outs of the work we do. So, it is appreciated. Thank you. Council Member Richards. MR. RICHARDS: Is it appropriate at this time to talk about my communication? ACTING CHR. KIMBALL: We would need to remove. MR. RICHARDS: Yeah. I'd like to take it off the table in light of all this conversation we just had. ACTING CHR. KIMBALL: Okay. Vote on Motion to Mr. Richards moved to remove Comm. 769 from Remove Comm. 769 the table. Seconded by Ms. Lee Loy and carried by from Table: the following voice vote: (Approved) Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball —6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder —3. Excused: None. ACTING CHR. KIMBALL: Council Member Richards. MR. RICHARDS: Yeah, in light of the conversation that we're having and the timing issues and all that, and the potential, I think it doesn't make any sense to go forward with the ad hoc. Let's circle back around and have a further conversation. So at this point, yeah this point, Chair David, I will have a conversation about seeing if we can schedule something. And I'd like to withdraw Communication 769. ACTING CHR. KIMBALL: Thank you. Still checking with Mr. Clerk. Is that necessary to withdraw the communication, or we just file it and move on? MR. HENRICKS: That's a good question. I think either way works. You could vote on closing file. It has the same effect; it would dispose of it. Or you could recognize Mr. Richards desire to withdraw it from further consideration. It's at your discretion, Chair. ACTING CHR. KIMBALL: Thank you. You have a preference, Council Member Richards? MR. RICHARDS: I don't have a preference. Thank you, Chair. Page 21 FC-34 May 3,2022 ACTING CHR. KIMBALL: All right. We'll just move over to closing file on the communication. MR. RICHARDS: Sounds good. ACTING CHR. KIMBALL: All those in favor say "aye." Vote on Comm. 769: The motion to close file on Comm. 769 was carried by Filed the following voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball —6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder —3. Excused: None. ACTING CHR. KIMBALL: I am now moving on to Resolution 386-22. Am I correct? MR. HENRICKS: Yes. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 386-22: AUTHORIZES THE OFFICE OF THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE STATE OF HAWAII DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS, PURSUANT TO HAWAII REVISED STATUTES, SECTION 46-7, FOR A WORKFORCE INNOVATION AND OPPORTUNITY ACT GRANT Allows for the receipt of$94,300, which would be used for rapid response and layoff aversion activities. Reference: Comm. 754 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Ms. David moved to recommend adoption of Res. 386-22. Seconded by Mr. Richards. ACTING CHR. KIMBALL: Any discussion? Do we have anybody from the administration side to comment on this? (Note: At this time, Housing and Community Development Specialist Royce Shiroma came forward to address the members of the Committee.) Page 22 FC-34 May 3,2022 ACTING CHR. KIMBALL: Thank you. Just if you can just briefly share with us what these funds are for? MR. SHIROMA: Yeah. These funds, coming through the U.S. Department of Labor through the State Department of Labor and Industrial Relations, allow the County to respond to any mass layoffs from employers, to assist the employer and the employees of that company; and it's a way for the State and the County to provide proactive services to the employees and the employer. And one of the examples, most recently we had the Love's Bakery shut down, so this program assisted with the employees, trying to retrain them for various other occupations if they requested the assistance. ACTING CHR. KIMBALL: Thank you. And I'm not sure if I asked you to do this officially. Can you please state your name and position for the record? MR. SHIROMA: Oh, sorry. Royce Shiroma, Office of Housing and Community Development. ACTING CHR. KIMBALL: Thank you, Royce. Any further comments or questions from my colleagues? Seeing none. Motion on the floor is to move Resolution 386-22 forward with a favorable recommendation to Council. All those in favor? Vote on Res. 386-22: The motion to recommend adoption of Res. 386-22 (Approved) was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball —6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder —3. Excused: None. ACTING CHR. KIMBALL: Next item,please. Page 23 FC-34 May 3,2022 Res. 387-22: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR AGREEMENT FOR CONSULTANT SERVICES TO ANALYZE AND PROPOSE AMENDMENTS TO THE HAWAII COUNTY CODE 1983 (2016 EDITION, AS AMENDED), CHAPTER 23, SUBDIVISIONS AND CHAPTER 25, ZONING FOR THE PLANNING DEPARTMENT Provides for a two-year agreement to develop amendments designed to update and improve land use regulatory language. Reference: Comm. 755 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 387-22. Seconded by Mr. Richards. MR. RICHARDS: Council Member Lee Loy, I see we have Director Kern on the line. Should I go right to the Director? Yes. Director Kern, if you would, please? (Note: At this time, Planning Director Zendo Kern came forward to address the members of the Committee.) MR. KERN: Good afternoon, Madam Chair, members of the Committee. Yeah, this is regarding the larger discussion around doing the Code update for Chapter 23 and 25. Our panel has made a selection for a consultant to work on the update. We're currently in negotiations, and this is a critical element to allow us to move into a contract, so we really appreciate your support, and happy to answer any questions. Thank you very much. ACTING CHR. KIMBALL: Thank you, Director. Council Member Lee Loy. MS. LEE LOY: Thank you. Director Kern, thanks for being here. I'm actually really excited to see this move forward, from day one, five years ago. But just reading to the B-52, Director Kern, if I'm adding this up correctly, it's $150,000 plus the $400,000 and then this $250,000, so approximately $800,000 for the development of this multi-year contract to analyze and provide the various actionable edits to Chapter 25 and 23? MR. KERN: We're going a little bit further than that. We're going to be submitting a supplemental request to round up that number a bit. I'm not sure if this is the appropriate area to discuss that. But essentially we'll be rounding up a bit, and it's not just to do analysis but it's to do the overhaul, as the goal starting out with the analysis on the $150,000. We have a bunch of data already that we'll be providing them, so it's not something that I'm just going to outsource all of it. It's going to be very collaborative because I feel like our department really knows Page 24 FC-34 May 3,2022 a lot of what we need to do. And through that, over the next two years, is to do the analysis and do the update to Code, and be bringing revision top to bottom back to Council within this two-year period is my year is my goal. MS. LEE LOY: Perfect. And will this contract have like a crosswalk of the actionable edits to Chapter 25 and how it impacts the various pieces of 25 and 23? MR. KERN: That's the goal, to have that(inaudible) relation to how these connect up to each other, yes. MS. LEE LOY: Okay, I was going to use the same sign language, but I'm glad you used it first. Yeah, I'm supporting this. And thank you so much for all that work, and to your department for leading the charge on this. Chair, I yield. MR. KERN: Yeah, we're really excited. ACTING CHR. KIMBALL: Thank you, Council Member Lee Loy. Council Member Chung. MR. CHUNG: Yeah. Zendo, did this go through the procurement process? MR. KERN: This has gone through the professional services process with Finance in the same way that we've selected other consultants. They go through the professional services list. There's a panel that's put together. The panel then goes through an entire system of interviewing and scoring, at which point that was presented to myself. We were then good with the top selection that the panel made, and now we're going through negotiations with the consultant. MR. CHUNG: So this is different from Sole Source? MR. KERN: It's different than Sole Source, and it's different than like an RFP (Request for Proposals). This is professional services. So we have a list of professional services providers, as many of the departments do. And we'll send out a scope and say, basically request, "Are any of you consultants," or whoever, "interested in this scope of work," and then they'll send in saying, "Yes we are." And in this case, I think we got over seven or nine folks that were interested. And thus the panel gets put together; that myself and the Deputy Director are not part of, and they do their own separate analysis to then come up with their recommendation. MR. CHUNG: Are you at liberty to tell us who was selected? MR. KERN: I believe so. But we haven't gotten into contract yet. I defer to Corp. Counsel on that question. Page 25 FC-34 May 3,2022 MR. CHUNG: Okay. Well, how about this—and who is on the panel? MR. KERN: The panel was comprised of April Suprenant, my Program Manager; Maija Jackson, Program Manager; Noreen Kato, Program Manager. MR. CHUNG: And finally, how much is this going to be? MR. KERN: Well, this is based on the budget that we have. So we've gotten the money that Council Member Lee Loy just spoke about, and we're going to be adding a bit more. The goal is around $600,000 for the County side of it,plus the CDBG-MIT (Community Development Block Grant Mitigation) side of it, for the Hazard Mitigation side of it, and that's the budget that we're working within. It's different than the consultant that says we're doing this on a finite amount. They have, you know, they have their billings. And that's what we're negotiating right now, so we can get through all of that. And then my goal is to work within this budget. MR. CHUNG: $600,000 to assist the County in redoing the subdivision and Zoning Code? MR. KERN: Yep, yep. So if that—that probably sounds like a lot. MR. CHUNG: It does. MR. KERN: It is a lot of money. There's no question it is a lot of money. That's very much on track with other jurisdictions and probably a lot less expensive. When I had my team put together a basic overview of it, the price came out to be over $1 million based on what would be needed for that,public outreach, et cetera. So I said that's not even close to what's going to be happening. We've got to do this for around the $600,000 mark, minus the CDBG-MIT. Maui went through something very similar. They spent more on it than that. Same with Kauai and same with other jurisdictions. So while it sounds like a lot of money, and it is a lot of money, there's no question. It's actually—we're still being very budget minded for what we're going to be going through. It's not we're going through the Code, top to bottom, and them giving us some suggestions. We're going through it, and we'll be presenting an updated and revised Code for Subdivision and Zoning. MR. CHUNG: So is this is an individual or a firm? MR. KERN: This is a large firm. MR. CHUNG: Okay. Page 26 FC-34 May 3,2022 MR. KERN: This is two firms actually, partnered up on this that is that's large. MR. CHUNG: When are you going to finalize this agreement? When can we get more information in other words? MR. KERN: Yeah, my goal—and I'll follow up with Corp. Counsel on it, as far as what we need to do to be able to give you that, and I can give that to you when we get to Council. In two weeks, that would be my goal, if not sooner. MR. CHUNG: All right. Thank you, Zendo. MR. KERN: You're welcome. ACTING CHR. KIMBALL: Chair David. MS. DAVID: Yes, I just have a quick question, Director Kern. This panel—not panel, but this company, when they enter into this two-year agreement, will their work include incorporating the provisions of these CDPs (Community Development Plans) into the Subdivision Code, whereI know that we as a County was trying to implement those things and kind of match them up because there were parts of the CDP that needed to be changed in order to conform, right? So will they be doing that part of it too, in this process? MR. KERN: That's the goal. So they'll be working with us and our staff, and collectively we'll be amending elements of the Code that don't work, or uplifting other elements or direction from, say, GP (General Plan), CDPs, etcetera. The goal is to MS. DAVID: Right. I see, and making it conform to the provisions of the CDP, okay. That's good to know, because I know that was a task that was very difficult for your department to handle on its own. Very complicated, but I'm glad that it will involve that. And finally, hopefully we can get a merged Code system. MR. KERN: That's the goal. Between Code, GP, and all of this effort, is to really get things, you know, comprehensive and complete. Again, Subdivision Code is based in 1983, Zoning is 1996. Neither of them had ever had an overhaul, so I think now is the time. MS. DAVID: I think that's a great idea, and thank you for that. Appreciate it. I'm glad it's being started. All right, I yield. Thank you, Chair. ACTING CHR. KIMBALL: Thank you, Chair David. Anyone else before I go back to Council Member Chung? Council Member Chung, you have the floor. Page 27 FC-34 May 3,2022 MR. CHUNG: Yeah. Zendo, are these firms on-island, off-island, in-state, out-of-state? MR. KERN: They range. MR. CHUNG: Range from what? MR. KERN: Generally from an in-state to out-of-state. Couple in-state. A number of them of out-of-state. Usually the ones that have the capacity that we're seeing, unfortunately are not necessarily in-state. Sometimes the out-of-state larger firm will bring on a local in-state contractor to work with as a sub. MR. CHUNG: Yeah. Because, you know, I do recognize that some of this entails the utilization of best practices, right? But how familiar are these firms with our present laws? And the reason why I ask that is I would hate for people to start learning on our dime. MR. KERN: Well, correct. So there's two ways to go about doing this, and I don't honestly think that there's any firm that handles Code for this, that actually totally understands our Code. Folks who understand our Code are generally our local land use consultants that generally don't take on large-scale Code work like this. So who understands this is the team members, right, of the department. So there are two approaches to it, and one would just be to let the consultant figure it out and do what they're going to do, and stand back and say, "Hey, that's their job." That's not what we're going to do. We're going to be working with the consultant so we can be providing them the insight, the knowledge, and the understanding of what we want to do, and then they'll be working on effectuating that, and formatting it, et cetera. And so we'll be very much directing a lot of the information. So we're not just handing it over to them, so they have to learn our Code. I wish I could say a little bit more. I'm instructed not to. I can't go into specific details. But those things had been considered, and so that's my approach to do it, is to really work together; and work with the consultant, instead of just handing it over to them. MR. CHUNG: Right. You know, I'll vote in favor of it today to move it forward, but I've got to tell you, and I probably will be in the minority. I'm concerned about this cost. I'm going to need more information in order for me to vote for this, yeah. So if you can get as much information as you can when we do take the final vote. It might not matter when everybody casts their vote; but as far as I'm concerned, I'm going to need more information. MR. KERN: Sure, I'm happy to provide that. Page 28 FC-34 May 3,2022 MS. VILLEGAS: Yeah, thank you, Zendo. MR. KERN: No problem. ACTING CHR. KIMBALL: Thank you, Council Member Chung. Anyone else? Council Member Inaba. MR. INABA: Hi, Director Kern. Yeah, echoing what Council Member Chung's brought up in light of kind of the big spending, I mean, in our meetings with you, we're hearing that we're getting these projects done, you know, at more affordable rates, and maybe they normally would be but with this and the General Fund, those are big projects. So the more information we have, that the public can have, especially in light ofI mean, I know oftentimes we rely on the expertise of our department administration, but we're forming these projects out to outside firms, as is Housing. And we just need to make sure that the funds are being spent, you know, with the best possible use and effectiveness. So that additional information is appreciated. Thank you. MR. KERN: No problem. ACTING CHR. KIMBALL: Council Member Lee Loy. MS. LEE LOY: Thank you, Chair. I wanted to springboard off of something that Council Member David spoke about, which is our CDPs, which is actually housed in a different section of our Code, which is Chapter 16. And so, Director Kern, I think it would be a value not only for Chapter 25 and 23 to kind of be evaluated, but also looking at Chapter 16 itself. And I'm generally concerned how the vocabulary and definitions, which is the big tackle of Chapter 23 and 25, is these definitions; and making sure that the vocabulary is consistent throughout the two different chapters. And so I don't think it would hurt to also, maybe not so much evaluate Chapter 16, but making sure it's, as I mentioned in our sign language, that crosswalk of edits actually does not only match up for those two chapters, but any other respective sections of our County Code that touches those chapters. MR. KERN: I agree, and that has been on top of mind, as well. That also goes to say, you know,probably Chapter 27 and some other areas, when we get into CDBG, you know, the mitigation side of it. So, there's yeah, there's kind of a web of other areas that our Code affects, or affects our Code, right? So that's what we really need to do, is take into consideration for all those to make sure that our Code is complete. And it might also come out with some recommendations for some other areas within the Code that might not be housed within Planning. MS. LEE LOY: Great. Thank you so much, Director. It's going to be complex. And I hear you, it is a lot of money. It is just that complex to tackle this part of our governance, you know, with land use. Thank you, Chair. I yield. Page 29 FC-34 May 3,2022 ACTING CHR. KIMBALL: Thank you, Council Member Lee Loy. Anyone else? All right, I'll just conclude with a couple of questions. Director Kern, am I correct in understanding that the large portion of this $400,000 is actually grant funded? MR. KERN: So we're making there's this part of this grant fund that we got $400,000 for the CDBG Mitigation grant. That portion has to be spent on Hazard Mitigation, parts of the Code. It really can't be blended. We thought we'd have a little bit more latitude when that came over; but as we did the analysis, we have to keep a pretty clean separation on that. So that's why you're going to see an increase on the Code portion just for the County side. That would just really be over the overhaul, top to bottom, and then we'll be plugging in the mitigation side of it, using those separate funding sources. ACTING CHR. KIMBALL: Okay. But in general though, a portion of the consultant's fee will be paid through these Hazard Mitigation Funds. It may not the full—okay. MR. KERN: No, it won't be the whole thing. It will be the portion that's really related to the Hazard Mitigation portion of it, and if it's 10 or 20 percent of it, it could be more. That's what we're working on,just really quantifying. But yes, part of that will be paid with those funds. ACTING CHR. KIMBALL: Okay, thank you. And to use Council Member Lee Loy's sign language, how is this going to play with the Council's own management contact and their Code review and recommendations? MR. KERN: It plays. I mean, that's going to be speaking to it. We're in discussions around that right now. Like a lot of the coastal, the SMA (Special Management Area) side of it, rests in Rule and HRS (Hawai`i Revised Statutes). And so we were looking, and this is where also where the consultant will be helpful in doing an analyzation on whether we uplift that in Code, or what elements we uplift that into the Code, or what ones we keep in Rule or separate. So that's part of that conversation. ACTING CHR. KIMBALL: Okay. So just timing-wise, are you likely to have those recommendations from that consultant whether or not Code adjustments need to be made by the time that we get going on the second contract, which ? I just wanted to make sure we don't have two potentially contradictory processes going on with these two consultants on different projects. MR. KERN: Yeah, at this point and time I don't feel like we will. As long as we can get this moving and get the consultant onboard, then we will be plugging Page 30 FC-34 May 3,2022 these areas so they can jive together or do this; as we like to say now, like fit together. ACTING CHR. KIMBALL: Okay, great. And then my final question is, can you talk a little bit more about the scope of work, and to the extent that when we get to the point that you were going to propose to us, some Code changes, will we still have the consultants available to provide to us information around the decisions that they made with regard to the recommendations? MR. KERN: Yeah, that's correct. So when it ultimately gets to Council, we would still like—I'll get the tail-end of the consultant's contract. And we would like them onboard so they can come in and help do the presentation to the Council, depending on, you know, how that goes. We'll have to work with them on it. But that would be the goal. So the Council could request information from them, as well. ACTING CHR. KIMBALL: Okay, thank you, Director. I think you have some questions from my colleagues for the next session, so please reach out if there's other things in advance that the folks want to know. With that, I will move forward on the vote. All of those in favor of moving Resolution 387-22 to Council with a favorable recommendation,please say "aye." Vote on Res. 387-22: The motion to recommend adoption of Res. 387-22 (Approved) was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball –6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder –3. Excused: None. ACTING CHR. KIMBALL: Thank you again, Director, for being here. MR. KERN: Thank you so much. Aloha. ACTING CHR. KIMBALL: Take care. Next item up,please. Page 31 FC-34 May 3,2022 Res. 388-22: AMENDS RESOLUTION 168-21 AUTHORIZING THE OFFICE OF THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE UNIVERSITY OF HAWAII Amends Resolution Number 168-21 to increase the funding amount for the Kuleana Health project from $100,000 to $200,000. Reference: Comm. 758 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Vote on Res. 388-22: Ms. Lee Loy moved to recommend adoption of Res. 388-22. (Approved) Seconded by Mr. Richards and carried by the following voice vote:. Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball —6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder —3. Excused: None. ACTING CHR. KIMBALL: We can move on to Bills, please. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Order of Resolutions. Bill 159: AMENDS ORDINANCE NO. 21-39, AS AMENDED, RELATING TO PUBLIC IMPROVEMENTS AND FINANCING THEREOF FOR THE FISCAL YEAR JULY 1, 2021, TO JUNE 30, 2022 Adds the Parks and Recreation Hawaiian Paradise Park District Park—Fair Share project($235,000)to the Capital Budget. Funds for this project shall be provided from Fair Share funds and be used for costs associated with planning, design, and an environmental assessment. Reference: Comm. 746 Intr. by: Ms. Kierkiewicz ACTING CHR. KIMBALL: Thank you, Mr. Clerk. May I have a motion, Council Member Lee Loy, regarding Bill 159? MS. LEE LOY: Sure, Chair. At the request of Council Member Kierkiewicz, a motion to postpone Bill 1- MR. HENRICKS: Sorry to interject, we're going to need a main motion on the floor prior to a motion to postpone. Page 32 FC-34 May 3,2022 MS. LEE LOY: Thank you, Mr. Clerk. Motion to Approve: Ms. Lee moved to recommend passage of Bill 159 on first reading. Seconded by Mr. Richards. ACTING CHR. KIMBALL: Chair recognizing Council Member Lee Loy. MS. LEE LOY: Thank you, Chair. As mentioned, this is Council Member Kierkiewicz's bill. The request is to postpone Bill 159 to our May 17'h Finance Committee. Vote on Motion Ms. Lee Loy moved to postpone Bill 159 to May 17, 2022. to Postpone: Seconded by Mr. Richards and carried by the following (Approved) voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball —6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder —3. Excused: None. ACTING CHR. KIMBALL: Next item,please. Bill 160: AMENDS CHAPTER 11 OF THE HAWAII COUNTY CODE 1983 (2016 EDITION, AS AMENDED), BY ADDING A NEW ARTICLE RELATING TO AFFORDABLE HOUSING PRODUCTION FUNDING Establishes an annual appropriation of at least$5 million per to year to the Office of Housing and Community Development to facilitate programs that support affordable housing production. Reference: Comm. 750 Intr. by: Ms. Kierkiewicz Motion to Approve: Ms. Lee Loy moved to recommend passage of Bill 160 on first reading. Seconded by Mr. Richards. ACTING CHR. KIMBALL: Council Member Lee Loy. MS. LEE LOY: Thank you. Again at the request of Council Member Kierkiewicz, a motion to postpone Bill 160 to our May 17'h Finance Committee agenda. Page 33 FC-34 May 3,2022 Vote on Motion Ms. Lee Loy moved to postpone Bill 160 to May 17, 2022. to Postpone: Seconded by Mr. Richards and carried by the following (Approved) voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball —6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder —3. Excused: None. ACTING CHR. KIMBALL: Next item,please. Bill 161: AMENDS ORDINANCE NO. 21-39, AS AMENDED, RELATING TO PUBLIC IMPROVEMENTS AND FINANCING THEREOF FOR THE FISCAL YEAR JULY 1, 2021, TO JUNE 30, 2022 Reappropriates lapsed fuel tax funds from prior fiscal years by establishing the following fuel tax program appropriations to the Capital Budget: Roadway Projects (Engineering) ($451,774.22); Bridge Inspection, Repair and Replacement Program (Engineering) ($332,289.35); and Local Road Improvements (Highways) ($1,761,734.13), for a total appropriation of $2,545,797.70. Reference: Comm. 752 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) ACTING CHR. KIMBALL: Thank you, Mr. Clerk. May I have a motion to send Bill 161 to Council with a favorable recommendation? Motion to Approve: Mr. Inaba moved recommend passage of Bill 161 on first reading. Seconded by Ms. Lee Loy. ACTING CHR. KIMBALL: Any discussion? Council Member Inaba. MR. INABA: Thank you. I'd like to hear from well, by request, but if we could hear from Director Sako regarding this bill,please? (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MR. INABA: You know, we've had discussions regarding the fuel tax. We have a bill tomorrow, so can you put this current bill into context in this bigger picture, please, Deanna? Page 34 FC-34 May 3,2022 MS. SAKO: Sure. So this particular bill is in the Capital Project Fund, and each biennium period the fuel taxes are appropriated in specific categories, which are the three that are on the attachment: the Roadway Improvement projects, Bridge Inspection and Repairs, and then Local Road Improvements. Due to COVID, some of these projects did not move forward as rapidly as we thought. Some staff were out, you know, especially with paving and whatnot. So now they are now back on track, and paving is moving forward. And so this is to reappropriate these funds from 2016-2018 biennium and 2018-2020 biennium. MR. INABA: Okay. And is this related—or separate than the Fund Balance, right? MS. SAKO: That is correct. These funds have already been transferred to the Capital Project Fund, and the projects are lapsing, so we just want to reappropriate them so we can continue to do the work. MR. INABA: Okay. Thank you, Director. Chair, I yield. ACTING CHR. KIMBALL: Thank you, Council Member Inaba. Anyone else? Seeing no further discussion, all those in favor say "aye." Vote on Bill 161: The motion to recommend passage of Bill 161 on first (Approved) reading was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball —6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder —3. Excused: None. ACTING CHR. KIMBALL: Next item,please. Bill 162: 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—Reserved account ($100,014.94) and the Fuel Tax—Designated Capital Improvement Projects account($600,000); and appropriates the same to the Transfer to Capital Projects Fund—Highway account. The appropriation of these excess revenues from prior fiscal year fuel tax collections is required to enable expenditure of the funds. Reference: Comm. 753 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Page 35 FC-34 May 3,2022 Vote on Bill 162: Mr. Inaba moved to recommend passage of Bill 162 (Approved) on first reading. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, and Acting Chair Kimball—5. Noes: None. Absent: Committee Members Kierkiewicz, Richards, Villegas, and Chair Kaneali`i-Kleinfelder —4. Excused: None. ACTING CHR. KIMBALL: Next item,please. Bill 163: 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 —Workforce Innovation and Opportunity Act account($94,300); and appropriates the same to the following Workforce Innovation and Opportunity Act accounts: Rapid Response Administration/Planning 2021-2022 account($9,430) and the Rapid Response Program 2021-2022 ($84,870). Funds would be used for rapid response and layoff aversion activities. Reference: Comm. 754 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Vote on Bill 163: Mr. Inaba moved to recommend passage of Bill 163 (Approved) on first reading. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, and Acting Chair Kimball—5. Noes: None. Absent: Committee Members Kierkiewicz, Richards, Villegas and Chair Kaneali`i-Kleinfelder—4. Excused: None. ACTING CHR. KIMBALL: Next item,please. Page 36 FC-34 May 3,2022 Bill 164: 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($30,000); and appropriates the same to the Office of Housing Other Current Expenses account, bringing the total appropriation to $81,679. Funds would be used for administrative costs to operate the housing voucher program. Reference: Comm. 756 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Vote on Bill 164: Mr. Inaba moved to recommend passage of Bill 164 (Approved) on first reading. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball —6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder —3. Excused: None. ACTING CHR. KIMBALL: Final item of business, please. Bill 165: 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 Real Property Tax Penalties account($720,000); and appropriates the same to the Transfer to Disaster/Emergency Fund account ($240,000) and the Transfer to Public Access/OpenSpace Preservation Fund account($480,000), to account for excess real property tax penalty revenue that must be appropriated into these special funds pursuant to the Hawaii County Charter. Reference: Comm. 757 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Page 37 FC-34 May 3,2022 Vote on Bill 165: Mr. Inaba moved to recommend passage of Bill 165 (Approved) on first reading. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball—6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali'i-Kleinfelder —3. Excused: None. ACTING CHR. KIMBALL: May I have a motion to adjourn? ADJOURN- There being no further business, at 4:10 p.m., Mr. Inaba moved to adjourn MENT: the meeting. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Lee Loy, Richards, and Acting Chair Kimball—6. Noes: None. Absent: Committee Members Kierkiewicz, Villegas, and Chair Kaneali`i-Kleinfelder —3. Excused: None. ACTING CHR. KIMBALL: Thank you. II Approved: . . 6 -I y- ;SII Mr. Matt Kanear, i-Kleinfelder, Chair (Date) Finance Commit ee MK/na Page 38