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HomeMy WebLinkAboutMIN FC 2022/07/05 2020-2022 Committee on Finance 38th Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii July 5, 2022 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 9:32 a.m., in the Council Chambers, Hilo, by Ms. Heather 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. Ashley L. Kierkiewicz, Member Ms. Susan L. K. Lee Loy, Member Mr. Herbert M. "Tim" Richards, Member(came in later) Ms. Rebecca Villegas, Member Absent& Excused: Mr. Matt Kaneali'i-Kleinfelder, Chair 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 regarding Comm. 633, and came forward when called by the Chair: Toni Withington. Kimberly Kaho`onei. Alan Rolph. Rose Schilt. ACTING CHR. KIMBALL: Thank you. Thank you all of the testifiers for making the time to bring their comments today. Mr. Clerk, could we go to the top of the agenda,please? FC-38 July 5,2022 COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 30.31: REPORT OF FUND TRANSFERS AUTHORIZED: MAY 16 —31, 2022 From Controller Kay Oshiro, dated June 8, 2022. Vote on Comm. 30.31: Ms. Kierkiewicz moved to close file on Comm. 30.31. Filed Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Lee Loy, Villegas, and Acting Chair Kimball—7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Richards —2. Excused: None. ACTING CHR. KIMBALL: Next communication, please. Comm. 31.38: REPORT OF CHANGE ORDERS AUTHORIZED: MAY 16 —31, 2022 From Finance Director Deanna Sako, dated June 7, 2022, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Vote on Comm. 31.38: Ms. Lee Loy moved to close file on Comm. 31.38. Filed Seconded by Ms. Kierkiewicz and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Lee Loy, Villegas, and Acting Chair Kimball—7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Richards —2. Excused: None. ACTING CHR. KIMBALL: Next communication, please. Page 2 FC-38 July 5,2022 Comm. 844: DEPARTMENT OF PARKS AND RECREATION'S EVALUATION OF APPLICATIONS FOR 2021 STEWARDSHIP GRANTS FOR COUNTY LANDS ACQUIRED THROUGH THE PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION FUND From Parks and Recreation Director Maurice C. Messina, dated June 3, 2022, presenting recommendations for eight applications received from qualified nonprofit organizations requesting funding to maintain certain parcels acquired through the Public Access, Open Space, and Natural Resources Preservation Fund: • Friends of Amy B. H. Greenwell Ethnobotanical Garden (Gardens) Funds requested: $191,609 • Ho`omalu Ka`u(Kahua Olohu) Funds requested: $18,150 • Na Mamo O Kawa(Kawa`a/Kawa`a Bay) Funds requested: $123,500 • Na Maka Haloa O Waipi`o (Pohoiki) Funds requested: $119,900 • Kohanaiki `Ohana(`O`oma Lands) Funds requested: $24,880 • North Kohala Community Resource Center (Hapu`u) Funds requested: $37,690 • North Kohala Community Resource Center (Pao`o) Funds requested: $37,690 • North Kohala Community Resource Center (Kaiholena) Funds requested: $64,042 and Comm. 844.1: From Parks and Recreation Director Maurice C. Messina, dated June 27, 2022, transmitting their recommendation for the following additional stewardship grant application: • P6h5h5 I Ka Lani (Waipi`o Valley Lookout) Funds requested: $92,300 Motion to Close File: Ms. Kierkiewicz moved to close file on Comm. 844. Seconded by Mr. Inaba. ACTING CHR. KIMBALL: Any discussion? Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. If maybe we could call forward Parks and Recreation Director Maurice Messina, to give us a high-level overview of this particular suite of applications. I know that came in before the 2020 Charter Page 3 FC-38 July 5,2022 amendment, and there's a transition period with Finance. So if you could just let us know if this kind of wraps you up. We're going to be transitioning to Finance. And just kind of—some reflections on the applications you've received to date. (Note: At this time, Parks and Recreation Director Maurice Messina come forward to address the members of the Committee.) MS. KIERKIEWICZ: Thank you, Director. MR. MESSINA: You're welcome. Maurice Messina, Director of Parks and Recreation. Like Ms. Kierkiewicz said, this is our final review. This is, I would say for lack of better words, this is in stark contrast to our previous recommendation. We've been holding on to this one for a little while longer. We had about—our initial review that was going to come to Council was about 27 pages, really delving into every single one of these applications. And our recommendations were kind of a hodge-podge of positive and negative recommendations. So what we did is we went back with the Hawai`i County Charter, and we looked at the 13 prevailing placeholders that, you know,judge on how we should be looking at these. Although we do have some issues with some of the applications as far as permitting, electrical permitting,plumbing permits, building permits, and some questions about State Historic Preservation Division's—consulting with them and talking with Deanna, the Finance Director and her team, I think that our recommendation is we move forward with these. Because a lot of these applications, even though they do have some of those issues in them, there are also other areas where they actually fit very nicely. Like if we're talking like wildfire mitigation. I think it's specifically, maybe number two or number three, which talks about, you know, basically stewarding the land, talking about what the land means to folks and education. Those parts I think are pretty good. But the Finance Director and her team, after speaking with her, they feel that if we can at least get these stewardship applications moving, and those other issues, they can work out with them individually as they progress along. And I know that Finance Department also has their next recommendation for 2021 set to go, as well. And we think that both of these recommendations, between us and them, meld nicely together. And I was in Kohala yesterday, meeting with the folks out there as part of a 4h of July thing that we were doing, and they're excited. They're ready to get going. And I think that for one thing, especially for those folks, with the wildfire mitigation plans that they have in their applications, I think that moving these along is quick as possible is the right thing to do at this time. Page 4 FC-38 July 5,2022 MS. KIERKIEWICZ: Thank you, Director. Just curious, these are applications received in 2020? MR. MESSINA: Yes, they're for 2020. MS. KIERKIEWICZ: Okay. We're in 2022. Do you know how much of the work that was presented in these applications was actually done or not done because they needed funding in order to advance the work? MR. MESSINA: I can't be specific. But I do know some of the groups who we've been talking to, they've been still doing their stewardships that's needed, you know, so that they don't fall behind. MS. KIERKIEWICZ: Sure. And this is maybe like reimbursement for the work done in the past? MR. MESSINA: The Finance Director can speak a little bit more on that. I'm not sure how that part works on it. But they did have some funding that was still not used, and so they've been using that funding as well, you know, working through. MS. KIERKIEWICZ: Okay. Director Sako, do you mind coming forward? (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. KIERKIEWICZ: I'm just trying to wrap my head around. Because there are several cycles that we are kind of catching up on, and the transition period. Just want to make sure that our nonprofits that are applying are getting all the funding that they're needing. MS. SAKO: Yeah, so there are actually three year's worth of grants out there right now. MS. KIERKIEWICZ: Okay. MS. SAKO: So recently the contracts all went out for the 2019 grants. I think those are the ones the stewardship organizations are actively working under. And then as soon as this memo is approved today and the resolutions are brought forward, then the next set of contracts will be entered. And then we're going to wait about a month, but our next evaluation is actually ready to go, and then we'll be submitting that. We just didn't want there to be too much overlap. So we'll probably wait a month and then enter into those grant agreements, as well. Page 5 FC-38 July 5,2022 MS. KIERKIEWICZ: Okay, great. Mass infusion of cash to our nonprofits. Because now Finance is in charge of overseeing this process, will your department be executing on the contracts prior to 2021, or is that going to stay with P&R (Parks and Recreation)? MS. SAKO: No. I think we actually did the 2019, also. MS. KIERKIEWICZ: Okay. MS. SAKO: So that's all transitioned over. We were just waiting for P&R to do this last evaluation. MS. KIERKIEWICZ: Okay,perfect. When I was going through the recommendations, I noticed that education was not something that really qualified. And in going through the Charter, all those 17 criteria that you mentioned, Director, I don't see a fit. Have we been consulting with Corporation Counsel about ways in which we can find a way to make it fit? Because I think education is such a critical component to ensuring the long-term stewardship, and maintenance, and proper use of these parcels. How do we make education fit? MR. MESSINA: I think—of course, you know, we need to bring in Corporation Counsel on this. MS. KIERKIEWICZ: Yeah. MR. MESSINA: But if we look under, the one part talking about preservation MS. KIERKIEWICZ: Okay. MR. MESSINA: It's also included, there's the word "safeguarding," and so that's a question that we need to pose and say, "Okay is safeguarding, is that part of it?" So like if you look at the one for Pohoiki, even thoughI believe they had three different objectives, and the one objective doesn't necessarily work right now because of the permitting and the consultation with the State Historical Preservation Division. The other two criteria, I believe kind of fit under the safeguarding criteria, yeah, the objectives fit under the safeguarding criteria. MS. SAKO: But as you mentioned, we're going to have to get Corporation Counsel's opinion, because if they disagree with that, then it would take a Charter amendment to fix it. MS. KIERKIEWICZ: A Charter amendment can only be done every couple years. MS. SAKO: Yes, that's correct. Page 6 FC-38 July 5,2022 MS. KIERKIEWICZ: Yeah, I know. MS. SAKO: Which is why we try not to make the Charter this detailed. MS. KIERKIEWICZ: It's just very, very specific here. And so are there ways in which we can maybe go a little bit deeper in Code or with accompanying rules? MS. SAKO: The Code cannot override the Charter. MS. KIERKIEWICZ: Okay. But provide a little bit more specific detail and definition. MS. SAKO: If Corporation Counsel feels that it falls under that, yeah. MS. KIERKIEWICZ: Concurs. MS. SAKO: Yeah. MS. KIERKIEWICZ: Okay. All right. Just want to make sure there's every opportunity for nonprofits to access the funding. Because when we talk about these educational partnerships with keiki and schools, we've got to make sure that we're getting kids on the land so that they're getting real sense of place and just being able to access these incredible properties. Anyway thank you, Chair, for the latitude. And thank you very much, Director, for wrapping this up and putting in a nice bow and package for Finance to usher forward. I yield. ACTING CHR. KIMBALL: Thank you, Council Member Kierkiewicz. And just as a note, we do have Hamana Ventura on the call in Kona if anyone has questions for him. Any other discussion from my colleagues? All right, hearing none. All of those in favor? Vote on Comm. 844: The motion to close file on Comm. 844 and Comm. 844.1 Filed was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Lee Loy, Villegas, and Acting Chair Kimball—7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Richards —2. Excused: None. Page 7 FC-38 July 5,2022 ACTING CHR. KIMBALL: On to the resolutions then, please. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 445-22: AUTHORIZES THE DIRECTOR OF FINANCE TO NEGOTIATE A TWO-YEAR LEASE OF REAL PROPERTY, WEST HAWAII HOMELESS CAMPUS, SITUATED AT DISTRICT OF NORTH KONA, COUNTY AND STATE OF HAWAII, AND IDENTIFIED AS A PORTION OF TAX MAP KEYS: 7-4-010:044 AND 7-4-010:020, TO HOPE SERVICES HAWAII, INC. Authorizes the negotiation of a two-year lease with two eighteen-month option terms with an approximate annual cost of$10. The property, located at 74-5593 Pawai Place, would be used as an assessment center and emergency shelter for single individuals who are experiencing homelessness. Reference: Comm. 850 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 445-22. Seconded by Ms. Kierkiewicz. ACTING CHR. KIMBALL: Any discussion? MS. VILLEGAS: Yes,please. ACTING CHR. KIMBALL: Council Member Villegas. MS. VILLEGAS: Yeah, I suppose I have some questions about this. The location of this facility is challenging for Kona, in general. And there had been a lot of conversations in the past about the potential of doing a land swap with the trust in order to move this facility out of what is a commercial and industrial area. I suppose I'm a little concerned seeing a two-year lease here as well with the hope was that KukuiOla was going to be onboard sooner, and so I suppose I'm wondering what the plan is here. MS. SAKO: So I'm kind of hoping that someone from Housing and Mr. Ventura are still online. (Note: At this time, Real Property Manager Hamana Ventura came forward to address the members of the Committee.) MS. VILLEGAS: Hi, Hamana. MR. VENTURA: Hi, Hamana Ventura, Property Manager. Page 8 FC-38 July 5,2022 MS. VILLEGAS: Hey, did you catch that last kind of question I was asking? MR. VENTURA: Um-hum. MS. VILLEGAS: Can you give us a bit of an update on the vision or strategy for entering into another two-year lease commitment with Hope Services on this property? MR. VENTURA: Well, I think as we looked through our processes and looked into possible land swaps, the time period involved is something that doesn't occur overnight. MS. VILLEGAS: Yeah. MR. VENTURA: In addition, Housing has some CDBG (Community Development Block Grant) money that was used to erect those structures, and those are some of the items that they need to consider in addition to the land swap. So that's not a yes or no kind of question that's going to happen in the next fiscal. That's why we need the transition period so that everyone can start really drilling it down and looking at what we can do and how financially can we make it work. MS. VILLEGAS: Okay, thank you for that. Yeah. MS. SAKO: And I think normally we would have language in the lease as well if we needed to terminate early, with sufficient notice. MS. VILLEGAS: Okay. MS. SAKO: Typically there are terms in the lease that would cover that, as well. MS. VILLEGAS: Okay, great. And I suppose my other question is, what is the retail value of the rental of that place? And how does that work with the comparison of, you know, Hope Services getting it for $10? And where does that land on their financial statements and value added? There's just a lot of wants still on Pawai when it comes to that facility, and the services, and the chronic challenges there, and the lack of staffing. I spent a lot of time with Community Policing and other people who work with our houseless community, so there's a lot of frustration here. So just looking forI wish somebody was here from Housing or Hope Services. MS. SAKO: Yeah, that's what I just going to say. Sorry about that. We can try and have them at the next meeting to provide more information. MS. VILLEGAS: Okay. Page 9 FC-38 July 5,2022 MS. SAKO: But also, you know, I guess I'm thinking about that, almost $10 million that's in the budget for homelessness too, and maybe that will help them to figure out more solutions, or a better solution. Because we do understand the concerns with this area, and we've been hearing about it for a while now. MS. VILLEGAS: Okay. MS. SAKO: But yeah, that's kind of under Housing's realm. So we'll make sure somebody is onboard for the next meeting in two weeks. MS. VILLEGAS: Thank you. Because I start to feel like it's becoming the definition of insanity. And I don't believe that more money will solve the problem at this point. I think we need more strategic leadership, and changing from some of the models, from just Housing first to incorporating other models of activation and serving this population because there's a lot of money flowing in, and there are broad discounts on properties like this for $10. So just looking for and hoping for more insight and accountability when the lion share of resources are going somewhere, and we are still suffering really significantly. So, thank you. I appreciate you guys enduring my questions. I yield. ACTING CHR. KIMBALL: Thank you, Council Member Villegas. Okay. All right. If anybody has questions for Housing, we'll save that for a moment. We can take a recess if we need to. Please let the record reflect that Council Member Richards has now joined us. Mr. Inaba. MR. INABA: Thank you. Just checking. In the language of the resolution, second WHEREAS, it's saying they were negotiating a two-year lease starting March 3rd. So do we usually do resolutions authorizing activity that's already been taking place for three months—four months? MS. SAKO: Not typically. But I'm not sure what the delay was caused by. I'm not sure if Hamana knows either. Otherwise, we can check with Housing. MR. INABA: Okay. And then, in addition, continuing in that same section, it's reading, "negotiate a two (2) year lease for the period March 3, 2022 through March 2, 2024, with two (2) eighteen (18) month terms." MS. SAKO: Yeah, and that should read option terms. Sorry, I realized that as I was sitting in the audience that we had left out that word. MR. INABA: Yeah. Okay, so that Housing who prepared this resolution? Page 10 FC-38 July 5,2022 MS. SAKO: Yeah, but we'll take care of it and send in an amendment. MR. INABA: Okay, thank you. Still—anyone from Housing joined us yet? All right. Thank you, Chair. I yield. ACTING CHR. KIMBALL: Any further discussion? Is there interest in recessing until we get somebody from Housing? Just doing a pulse-check with everybody. Yes. Oh, you want to this is the last item of the agenda, so we could just recess until quarter after 10 (10:15 a.m.). All right, thank you. We are in recess. Recess: At 10:00 a.m., the Chair called for a short recess. Reconvene: The meeting reconvened at 10:16 p.m. ACTING CHR. KIMBALL: Good morning, everyone. We are coming out of recess for the Finance Committee. The motion on the floor at this time is to move Resolution 445-22 to Council with a favorable recommendation. I will check one more time if we have somebody from Housing. Oh, we do. Okay, wonderful. Let's get them on board. Okay, thank you. (Note: At this time, Assistant Housing and Community Development Administrator Harry Yada came forward to address the members of the Committee.) ACTING CHR. KIMBALL: All right, we'll move forward with discussion. If there are no other comments or questions right now from my other colleagues, I'll turn it back to Council Member Villegas. Because you had a question for Housing, go ahead, Council Member Villegas. MS. VILLEGAS: Thank you. Aloha, and thank you for joining us. Looking for a bit of information and clarification about this agreement for another two-year provision of this space for $10 a monthoh, I'm sorry, a year. I just was looking for a little bit more insight on where we were at with the retail value of this is, and how that is incorporated then into the value and resources provided to Hope Services. There continues to be a lot of frustration in District 7 with the services at this facility, and the challenges with staffing, and wrap-around services, but kind of a continued lion's share of resources being allocated here. So wondering if we're looking at another two years in this location and where KukuiOla is at, and what the timing for some good news and transitions might be. MR. YADA: Okay, I guess this subject has come up periodically, and the County together with federal money and other sources has put a lot of money into this facility and location. You know, selling and relocating it is not really practical at Page 11 FC-38 July 5,2022 this point. I'm not sure if any other questions with regards to that, but that's the situation as it sits now. MS. VILLEGAS: Yeah, I know there had been conversations before, and I had been asked to try and do some brainstorming. There had been conversations about a land swap with the County with the trust, in order to transition this particular site out of this commercial and industrial and storefront kind of arena, that hasn't come to pass. And even if a piece of property was identified, I'm sure it would take a number of years. But the hope was that at some point these services and facilities would be transitioning to KukuiOla. So are we are still a minimum of two years out from that, and hence this continued lease? MR. YADA: Well, this site and the operation are not really connected to KukuiOla, so it's never meant to be—KukuiOla was never meant to be a replacement for this operation. MS. VILLEGAS: Okay. Then my other question comes, what is the value of what would the retail value of a lease of this property be from the County in comparison to the $10? And where and how is that allocated as a value added to a contract with Hope Services? MR. YADA: Well, as you know, operating these facilities is not a—well, obviously HOPE is a nonprofit. When you say retail value, I'm not sure what you're asking. MS. VILLEGAS: I'm asking what the real value or the real cost of a lease on this piece of property in this location, in downtown Kona would be valued at? MR. YADA: You're talking about as another use? MS. VILLEGAS: Yeah. MR. YADA: I have you know, I don't—we've never had any appraisal or anything as far as I know. But again, you know, between the County, State, and government, and U.S. federal funds, there's been so much invested in this property that selling it is not part of the answer here. MS. VILLEGAS: I'm not talking about selling. I'm just trying to get an adequate market value for the amount of resources that are being provided to the nonprofit that's managing the facility, because we currently have consistent issues with lack of services and staffing, and constantly being called into question the effectiveness of the how the facility is being run. So I'm looking for a dollar value that most equitably represents the amount of resources. And let's say if the rental on that property in that area would normally, for a piece of land like that, rent it at$10,000 a month, but we are signing a lease for $10, how does that Page 12 FC-38 July 5,2022 difference in value versus what's being charged end up on the books for accounting, and also then accountability for the nonprofit that's being provided these resources at such reduced rates? MR. YADA: Okay. When you—the lease we're discussing is for the purposes of running a program you have today, which is there's no way anybody makes money running a homeless shelter. So in terms of a value of a lease in which you can operate a homeless program, there's really no premium value there. I being not clear, you know. MS. VILLEGAS: Okay, I don't think what I'm trying to ask is coming across, so I'm going to go ahead and yield at this time. ACTING CHR. KIMBALL: Thank you, Council Member Villegas. Anyone else? Yeah, thank you. For the record, Mr. Yada, could you please state your name and your position? MR. YADA: Harry Yada, I'm the Assistant Administrator for the Office of Housing and Development. ACTING CHR. KIMBALL: Thank you, Mr. Yada. Council Member Inaba, go ahead. MR. INABA: Thank you. Good morning, Harry. Just following up. So perhaps in not in your wheelhouse, but I'm not sure that the question was clear to you. We're just trying to understand if there's been any assessment as to market lease or rent of this property, that we have this resolution for today. MR. YADA: I guess what I'm sensing is there's a confusion between market rent for the property if you were allowed to do anything you wanted on the property, versus if it's only a lease to run a homeless program as a program, those values are drastically different, because it's not like you can acquire the property and do whatever you want with it under this lease where you have to run a homeless program. MR. INABA: I think you understand the question then, because your answer in the first part was "for anything else." So, that's the question. For anything else, what would the lease value be? Do you know? MR. YADA: No, I don't know. MR. INABA: Okay. Thank you. And moving on, how long has this specific organization been operating in this location. And do we have a record? Does your office have a record as to how many people have been served through the Resource Center, and housed in the sense of an emergency shelter? Page 13 FC-38 July 5,2022 MR. YADA: I don't personally have that information right now. We could get that from HOPE. MR. INABA: I think we definitely need that as a County if we're going to be giving an organization two years of$10 lease with an option for up to an additional 36 months. So please get that information becauseI'm hoping that the organization is providing these services, but how are we as a County granting these types of leases without data to confirm that the programs and services are operating as they should? And beyond what's in this resolution, are there specifics as to what we're expecting moving forward with this resolution, as authorized by the Council? Should we pass it? MR. YADA: Well, I guess I can make a you know, get the information for you in terms of data on the operation. I just don't have it in front of me. MR. INABA: Okay. With that, I cannot support this right now. We need this help in Kona, no doubt about it. Totally irresponsible for us as a Council, and for the office to put this forward without some type of knowledge or data to support a resolution. So I will vote no on this until we have that information. Thank you, Chair. I yield. ACTING CHR. KIMBALL: Thank you, Council Member Inaba. Council Member David. MS. DAVID: Yes, thank you, Chair Kimball. Mr. Yada, thank you for being here this morning. I won't repeat what Council Members Villegas and Inaba has just asked. But what I wanted was some clarification. Initially, you said when Ms. Villegas asked you, "How does this tie in with KukuiOla," and you said this has nothing to do with transferring, or the service is being part of the proposed KukuiOla project, is that correct? MR. YADA: Yes. So there's no direct connection at this point. MS. DAVID: I see. I see. So the thought process that I guess some of us were under the impression that as soon as another location was found, this being the location that we're talking about right now, has had so many negative impacts on the surrounding businesses and the community in the old industrial area for several years, and you are now saying that this will not—this project at this location will not move anywhere else. MR. YADA: No, there are no plans to move it. Page 14 FC-38 July 5,2022 MS. DAVID: So what we're looking at here, is continuing or voting on a lease that will maintain this program in this area without any consideration for relocation at all? MR. YADA: Well, I think the one connection that has been made is temporary facilities out at Old Airport, you know, those single units. I think the direct connection was relocating, or at least KukuiOla, allowing us to remove those. I think that connection has been made. MS. DAVID: I see. I think you know, the reason I'm asking is that with all of our prior discussions, during budget about addressing homelessness, to a point where we see positive results, I'm looking at this as maintaining something that has been very objectionable as to location to the businesses and the area that this is located right in. So I'm very leery about continuing something that will keep this project in an area where definitely the community—and public safety have huge concerns about, Mr. Yada. So, I'm not sure. I don't believe a two-year lease—given the situation, as far as this location, I would greatly support something at a lesser term so that we're not locked in to someplace that you're saying we can never move. But I think we have options now with the homeless funding program, that might open some doors for us. So this resolution, I have some reservations about the term and also the potential of the extension of two more 18-year options. So at this point, I believe two years is too long given the history of this place and the questions that have been brought out by other Council Members. And hopefully by the time we get to Council, you will have some answers to Council Member Inaba's questions. And also, maybe take into consideration the term length that I'm concerned about, only because of the serious health and safety issues surrounding this very area where we have businesses. So with that, Mr. Yada, thank you. I'm going to yield. And look forward to hearing from you during Council. Mahalo, I yield. ACTING CHR. KIMBALL: Thank you, Chair David. MS. LEE LOY: Yeah, thank you, Chair. You know, I'm sitting here listening very carefully to my Kona colleagues. Deanna, I have a question. (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. LEE LOY: And it sounds like there are some edits that could happen. I heard Council Member David talk about maybe more of a flexible timeline with the infusion of a number of options that happened during this last budget cycle. And just leaning in on you, Deanna, you know, our options right now: advance it; Page 15 FC-38 July 5,2022 hold it here in committee, while we can start blending a lot of the concerns that I'm hearing from my Kona Council Members right now; and get a resolution that really fits what we're looking at. Share with me, Deanna. MS. SAKO: Harry, I don't know if you're aware, are there any—is there any urgency to this matter that we have to pass it by a certain time? MR. YADA: I don't have the particular dates. I know the agreements were MS. SAKO: Because yeah, we're already going retro, back to March 3rd, 2022, so I'm thinking we're late already. Even if there's a federal deadline, the federal fiscal year is until September 30, so I'm thinking we have time, yeah. CHR. LEE LOY: Thanks, Deanna. You know, I think this last budget cycle we tried to do a lot, but one thing that we really did focus on was homeless, homeless opportunities, housing, housing options; and if this is another vehicle that we can, as a body, explicitly kind of put out what we're trying to achieve because what happens here in Kona is something we are going want to try and model in Hilo also and then, you know, use this is as a tool. And so if my Kona colleagues are willing you know, this conversation is winding downI'm looking at may be asking for a two-week postponement, while the Administration and our Kona colleagues kind of work with the Administration and put in language that would fit the desires for that community. Thank you, Chair. I yield. Oh, go ahead, Deanna. MS. SAKO: I was going to say we are happy to work with Housing, to get a lot of information that was requested today. The market rent,just so everyone knows, that's really not an option because we did use HUD (Housing and Urban Development) funding to acquire the property. So it's not like we could ever put it out at market value. I mean, we can try and get an estimate. But I just want the community to understand it's not like that's actually an option for us because it is, you know, I think we have another 15 to 20 years to go before we would be allowed to have free use of that property. And that's probably going to be one of the issues when we try to swap, as well. So yeah,just to let everybody know. MS. LEE LOY: Great. Yeah, anything more that we could get. I think there were a lot of questions here on the dais today. But yeah, Deanna. Thank you, Chair. I yield. ACTING CHR. KIMBALL: Council Member Richards. MR. RICHARDS: Thank you, Chair. And I appreciate quick comments. I like what Ms. Lee Loy is talking about. But coming back to what Mr. Inaba said; he's looking for metrics, is something actually working? And one of my concerns is, Page 16 FC-38 July 5,2022 with the funding that this body has put forth for homeless, and say we have plenty money. Well, that's not the point. The point is, are we spending that money well? And that's the bigger point. I'm listening, Deanna, what you're talking about; if this program is not working, then we need to put a new program in place. MS. SAKO: Yeah, and I totally heard that part. And so that's why—definitely if Mr. Yada doesn't have it, I know that someone in Housing does have it, you know, those kinds of metrics, and what they've actually—how many people they've been servicing. MR. RICHARDS: Exactly. MS. SAKO: And yes, I did hear that loud and clear. I just want I don't want the community to think, "Oh, we're just leasing it for ten,"when we could be getting more. And it t may be we need other providers, or to bid it out, or to do it a different way. And I do hear what you guys are saying. MR. RICHARDS: Yeah, and I appreciate that. So I think Mr. Inaba's point is well taken. And we've got to do a little bit re-evaluation of what's going on there. Again, we have the funds, but let's spend those funds wisely rather than same-ole, same-ole. I, too, will not support this today. So depending what this body wants to do with it. Thank you. I yield. ACTING CHR. KIMBALL: Thank you, Council Member Richards. Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. Deanna, to your point about the $10 a year lease agreement, this is not unlike this is not unusual. I've seen instances where the County or even the State enter into agreements with nonprofit organizations, lease rent is $10, or $100 bucks a year. MS. SAKO: Yes, right. MS. KIERKIEWICZ: Okay. MS. SAKO: I mean, they're traditionally very low. They used to be $1 a year. We've moved up from there. MS. KIERKIEWICZ: Hey, $1 a year. MS. SAKO: Yeah, so we may need to move up a little bit more. $100 a year may at least paperwork. Page 17 FC-38 July 5,2022 MS. KIERKIEWICZ: But we do that to help defray costs to solve the challenge? MS. SAKO: Yes MS. KIERKIEWICZ: Because at the end of the day, if it's at market rates MS. SAKO: Right. MS. KIERKIEWICZ: The nonprofit's likely go after a County grant. To apply for funding to pay the County for rent. MS. SAKO: Yes. MS. KIERKIEWICZ: Okay, I just wanted to make sure that was clear. MS. SAKO: So we have many nonprofit grants that are at that dollar amount. MS. KIERKIEWICZ: Okay. MS. SAKO: But I also hear that if we're going to give it to the same nonprofit, we want to make sure the services are being performed. MS. KIERKIEWICZ: Yes. MS. SAKO: And so that's what we'll work with Housing, to make sure we have the metrics for next time. MS. KIERKIEWICZ: And I think that's a trend that has become really apparent from this body, is we want to see the return on investment; and so if there is going to be this sort of arrangement, we just want to make sure that the best possible providers are in the mix providing the services. MS. SAKO: Right. MS. KIERKIEWICZ: And so in addition to having more folks from Housing here at the next conversation, maybe we also invite representatives from HOPE Services, who are administering the program and I think are in the best possible position, to talk about some of the work that they're doing but also the challenges that they're encountering. MS. SAKO: Yeah, that's a good idea. MS. KIERKIEWICZ: Okay, great. I will also be supporting a postponement of this measure. I think it's important to keep it in committee to get the words on paper right before we advance to Council. Thank you, Chair. I yield. Page 18 FC-38 July 5,2022 ACTING CHR. KIMBALL: Thank you, Council Member Kierkiewicz. Any other discussion? Okay, I'll take a motion at this time. Motion to Postpone: Ms. Lee Loy moved to postpone Res. 445-22 to July 19, 2022. Seconded by Mr. Inaba. ACTING CHR. KIMBALL: Any discussion on the postponement? Council Member Chung. MR. CHUNG: Yeah. You know, if it's okay, I'd just like to ask either Ms. Villegas or Mr. Inaba, or Maile, what their precise angsts are in this matter. I mean I've heard three things, there might be more. One is the market value, whether we're getting the amount that we're supposed to be getting; the other one is the metrics; and the third one which I view as being really significant, in my personal opinion, it's the location. So what can you guys at least provide me some help so that I can kind of think about this myself? I mean, what's the main one? What's the main problem in your opinion? ACTING CHR. KIMBALL: I'll recognize Council Member Villegas to respond. MS. VILLEGAS: What I am consistently approached by members of the community, Community Policing, other local nonprofits that work on the homeless and houseless population, and business owners, is the lack of effective management of that facility by HOPE Services. MR. CHUNG: Okay, so it's management too as well then? MS. VILLEGAS: And so my questions were to—and when we have a nonprofit that works in this field, as prominently as this one does with the lion share of resources, typically going to that nonprofit— MR. onprofitMR. CHUNG: Right. MS. VILLEGAS: I'm asking for some more accountability. MR. CHUNG: I see. MS. VILLEGAS: And I also concur with Council Member David that the prior belief system was that when KukuiOla was up and going, these facilities would be transitioning to different uses instead of kind of being perpetuated as a real core facility. We don't have you know, I consistently hear there is no staff, there aren't support services. The people that are living in these facilities have been living there for long periods of time. There is drug use. There is drug Page 19 FC-38 July 5,2022 dealing. There is a constant crisis. So it just calls for me then, which is a not fun position, but to have to say, "Wait." So now we're going to rent—we're going to lease for $10 a year, this facility. I'm not trying to say like we need the County needs to get that real money. I just was looking for how is that equated as another amount of value resources provided to a facility that's not currently being managed to a capacity that the district I represent feels is adequate. ACTING CHR. KIMBALL: I'm going interject right now. I'm just going to remind people, the motion on the floor is regarding a postponement. MR. CHUNG: Yeah, but— ACTING utACTING CHR. KIMBALL: Thank you. MR. CHUNG: I'm just trying to understand this,you know, whether I should vote for the postponement or just against it, and just vote another way on the main motion. Holeka? MR. INABA: Yeah, Council Member Chung, for me it's not so much the location. I'm not in that's not my district. I do frequent the area, however. But it goes back. For me, the main thing is the metrics. And we have no data to know what has been going on there, and no data beyond saying that it's an assessment center and an emergency shelter, to know what will be going on there as a result of us approving this lease. MR. CHUNG: Okay. I appreciate the leeway, thank you. Makes perfect sense. Thank you. MR. INABA: So thank you. ACTING CHR. KIMBALL: Thank you, Council Member Chung. Any further discussion on the postponement? Yes, Council Member Richards. MR. RICHARDS: Yeah, okay. Just a quick question, Deanna. And tying it to the postponement, is this where we did the—it's either like a tiny home or container funding? Is that a different one? No. But yeah, I think there were containers in this area. Okay, so I'm familiar with this site. MS. SAKO: Sorry. Yeah, yeah. MR. RICHARDS: Okay. All right, thank you. Page 20