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HomeMy WebLinkAboutMIN FC 2022/07/19 2020-2022 Committee on Finance 39th Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawaii July 19, 2022 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 10:03 a.m., in the Council Chambers, Kona, by Mr. Matt Kaneali`i- Kleinfelder, Chair. ROLL CALL: Present: Mr. Matt Kaneali`i- Kleinfelder, Chair Ms. Heather L. Kimball, Vice Chair(via videoconference from Hilo) Mr. Aaron S. Y. Chung, Member(via videoconference from Hilo) 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 III, Member Ms. Rebecca Villegas, Member STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: The following individuals registered to comment, and came forward when called by the Chair: Keoni Fox: Res. 448-22 (Comm. 855). (representing Ho`omalu Ka`u) Karen Eoff: Res. 446-22 (Comm. 853). COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 30.32: REPORT OF FUND TRANSFERS AUTHORIZED: JUNE 1 — 15, 2022 From Controller Kay Oshiro, dated June 22, 2022. Motion to Close File: Ms. David moved to close file on Comm. 30.32. Seconded by Mr. Inaba. CHR KANEALI`I-KLEINFELDER: Council Members, any discussion today on the item? And for those of us joining from Hilo today, if you have any comments FC-39 July 19,2022 or you want to join the discussion, please go ahead and do so. Okay, I have a question on this one then, seeing no discussion. Joining us, Carole Akau. Do we have a Carole Akau here? In Hilo, in Kona, or on Zoom? MR. BROWN: She's in Hilo, Chair. CHR KANEALI`I-KLEINFELDER: Okay. Thank you, Mr. Brown. Ms. Akau, I have a question for you. (Note: At this time, Finance Financial System Analyst Carole Akau came forward to address the members of the Committee.) MS. AKAU: Hi. Good morning. CHR KANEALI`I-KLEINFELDER: Good morning. Thank you for being here. I understand Deanna had an appointment, and so you're going to be helping us out today. MS. AKAU: Yes. CHR KANEALI`I-KLEINFELDER: My question for you is, I'm looking at the request to transfer funds from Public Works, and this is for this is transfer number 98, and there was a total of$641,000 transferred from multiple accounts. It looks like for Puainako Extension Guardrail Repair project? MS. AKAU: Yes. CHR KANEALI`I-KLEINFELDER: Do you have any information on that? It's a fairly substantial transfer, and I'm just interested in what this Puainako Extension Guardrail Repair project is. MS. AKAU: On that, I wouldn't have any information on the exact reason for the project. That would need to come from DPW (Department of Public Works), or we can table it till Deanna(Sako) gets back. CHR KANEALI`I-KLEINFELDER: Okay, I may table the item then. Is anyone from DPW available for questioning? MS. KIMBALL: There's no one here in chambers, Chair. CHR KANEALI`I-KLEINFELDER: Okay, thank you. Okay, I'm going to go ahead and table Communication 30.32 then, until the end of the meeting. MR. HENRICKS: Mr. Chair, that will require a motion and a vote to table that item. Page 2 FC-39 July 19,2022 Vote on Motion Mr. Inaba moved to table Comm. 30.32. Seconded to Table: by Ms. David and carried by the following voice vote: (Approved) Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. Comm. 867: ANNUAL AUDIT PLAN FOR THE FISCAL YEAR 2022-2023 From County Auditor Tyler J. Benner, dated June 30, 2022, transmitting the above audit plan, pursuant to Hawaii County Charter Section 3-18(d)(2). Motion to Close File: Mr. Inaba moved to close file on Comm. 867. Seconded by Mr. Richards. CHR KANEALI`I-KLEINFELDER: Council Members, discussion on Communication 867? Do we have Mr. Benner joining us today in Hilo? MR. BROWN: Yes, Chair. He's in the Hilo Chamber. (Note: At this time, County Auditor Tyler J. Benner came forward to address the members of the Committee. CHR KANEALI`I-KLEINFELDER: Okay. Why don't you go ahead, Mr. Benner, and start us off and then we'll go for questions from the Council. Thank you for joining us today. MR. BENNER: Thank you for having me. Good morning, Council. My name is Tyler Benner, I'm the County Auditor. Thank you, Council, for the opportunity to present the Office of the County Auditor's Fiscal Year 2022-2023 Annual Plan. The current plan will open two new audits with our Information Technology group, which may result in between two and four reports; conclude five audits already in progress; increase our monitoring in specific categories of Purchasing, including surprise cash count while developing a new act for contract and hosting a peer review. Work is designed to assist both the County Council and citizens of Hawaii by promoting accountability, and integrity, and openness in local government. We do this by conducting financial and performance audits; evaluating use of public funds, operations and activities resulting in findings and recommendations that we make available to elected officials and citizens in an objective manner. Page 3 FC-39 July 19,2022 Taking a look at the financial plan that we've submitted, let's just first look at items mandated by Charter. I'll draw your attention to page three of the plan. Charter Section 10-13 requires that we administer the contract for the Annual Comprehensive Financial Audit; Financial Statements for the Department of Water Supply; Single Audit of Federal Financial Assistance Programs, including a report for Landfill Financial Assurance; and Financial Assessments, electronic submission of Section 8 Housing vouchers. This contract is currently awarded. N&K CPA, Inc., this upcoming review period, July 2021 through June 30°2022, will be the final year of the contract. Our office is currently in the process of developing its RFP (Request for Proposals) for the upcoming contract. We intend to extend the contract award period from five to six years. Projects in Progress. Next, I'll talk about audits in progress. I'll draw your attention to page four of the Audit Plan. We've included a tentative completion schedule of the items listed. Both our Real Property tax collections audit and Mass Transit cash-handling audit are complete and in the hands of the departments, where we expect to have management responses by July 31". We should expect to have those reports publicly available at early August. For both the Department of Water Supply contingency plans and cash handling, two of our staff are on-site currently conducting fieldwork and are verifying the status of those prior findings. We expect to have drafts done in August. We hope to those reports probably shortly after, understanding that management response can influence the timeline. Our Department of Public Works contracts, change orders, and supplement audit was suspended to complete work on the Mass Transit follow-up, which was—ended up being well-timed given the unexpected change in management. But with the imminent completion of the MTA (Mass Transit Agency), we have a meeting scheduled with the current management to re-engage and complete the project. Additions to the work plan and considering additions to the work plan, we do add the disclaimer that unexpected priorities can and do arise, and in that case, a separate threat assessment is conducted to determine if the priority of the item considered should take precedence over a planned engagement. Self-Initiated Audits. This year, self-initiated audits, we'll focus on the County's Information Technology department. Specifically, we intend to engage with Network Security Group and User Group divisions of the department. The County of Hawaii has experienced server crashes and data loss. In assessing the merits of the engagement and to support our internal risk assessment, we looked at the information available on threats facing other organizations. A survey and consulting firm, Aon, conducts a biennial Global Risk Management Page 4 FC-39 July 19,2022 Survey, which saw 2,300 participants from 60 countries and 16 business sectors during its 2021 period. Between 2019 and 2021, cyber-attacks and data breaches increased from a sixth-place risk ranking to number one. For contacts to how quickly that risk has increased, in 2009, the same survey ranked the item at number 25. Cyber security attacks, fishing schemes, malware, and ransom are present and growing in sophistication and frequency, but newer threats are also being developed. Deepfake technology is threatened by biometric passwords, and quantum computing can potentially attack networks faster than defensive technologies can adapt. Our audit will assess cyber-security framework by involving people with the necessary experience and skills. This will include outside subject matter experts evaluating the full framework, using initial assessments to inform further in-depth reviews. As the scope is developed, this audit may be released in multiple parts. Because this body of work is operationally sensitive, the release of the information may be limited as allowed or required by law. Our second audit will focus on desktop support. We have an interest and understanding of what if any variants exists between a prudently run program and how our desktop support currently runs. Because every County department is dependent upon IT's administrative rights and technical skillsets to enable its technology initiatives, the ability to record, catalog, prioritize, and resolve work orders in a timely manner can be mission-critical in ensuring core services are being delivered to the public. We intend to explore the work order process in detail, as well as the weights and measures that would indicate how performance is tracked. Special Projects. We have several special projects that we are pursuing this year. The question of who audits the auditor is occasionally raised. That activity is achieved through a peer review. Currently, we're prepping for a peer review that will take place in the middle of January 2023, which we'll look at a period of July 1, 2019 through June 30, 2022. Next, we are developing our RFP (Request for Proposals) for the next countywide annual comprehensive audit contract award, and we intend to link the net period from five to six years. I'll skip over our remediation trackers. I'll mention it again here shortly. Our office will plan to increase the number of surprise cash counts that it conducts, as well as monitoring the purchasing cards and travel expenditures. Page 5 FC-39 July 19,2022 We intend to continue to research issues important to our employees and the public for our fraud and whistleblower hotlines. As Council may recall, we're operating a pilot program through June 2023. We've seen tremendous value in the communications and the issues that we've helped individuals to resolve. To date, we've had 22 communications. Admittedly during the initial launch in the line, there were a lot of misdirected non jurisdictional issues presented; and although calls have slowed the issues that are being presented now are much more aligned with intent of the hotline. We continue to support Council Member Kierkiewicz's Bill 173, a Charter amendment, that would grant some manner of investigative authority to our office so that we can continue transitioning from a pilot phase to a mature program, including all elements that will make it effective. Looking at our remediation tracker, which can be found on our website, we've launched this tool to track performance reports that we've published under my management. We will add additional audits to the trackers as they are conducted. We hope this new tool will serve to improve the continuity of findings, recommendations, and actions taken to achieve process improvement. We also believe that this essential resource will help to educate new Council Members, the Administration, Department Heads, and the public more to where status on recommendations stand. At this time, we do not intend to add audits to the tracker that I have not conducted as a first-time or follow-up audit. And that brings my presentation to an end. We look forward to our continued work with various departments in and throughout the County in the upcoming year. I appreciate your time today. I'd be happy to field any questions at this time from Council. Mahalo. CHR KANEALI`I-KLEINFELDER: Mahalo, Mr. Benner, for joining us today and for that very comprehensive report. Council Members, discussion? Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Mahalo nui, Chair. Thank you, Auditor Benner, for the high-level overview. Really appreciate the simplicity and how concise your plan is, no fluff,just getting to the point. We really appreciate that. I just wanted to take a second to emphasize and recognize the self-initiated audit by IT. I think, when we learned last year, that months of data had been lost and had to be manually re-entered into the system, it gave me a lot of heartburn. Especially considering county government, and government in general, because of the pandemic really needed a shift to be more available and operating online. And so as part of these audits, I'm hoping that you can also take a look at the last budget cycle, not the one we just completed, but last year, I had introduced some Page 6 FC-39 July 19,2022 budget amendments that we adopted, that were meant to support investing in infrastructure, hardened infrastructure for IT, but also ensuring that the systems that they have in place are secure. And so we would love to be able to know, through this audit, if the monies have been spent. That's really, really important. If we're going to be appropriating, we want to make sure that the departments are using it for the intent and purpose that we laid out. MR. BENNER: Thank you, Council Member. MS. KIERKIEWICZ: Other than that, great job. We really appreciate the focus and all of the work that you and your team are doing. Thank you, Chair. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kierkiewicz. Okay, looking around the room in Kona, I don't see any lights. Going to Hilo. MS. KIERKIEWICZ: Yes, Chair, Council Member Kimball. CHR KANEALI`I-KLEINFELDER: Ms. Kimball, go ahead. MS. KIMBALL: Thank you. Thank you, Auditor Benner, always appreciate the thoroughness of your reports. I just wanted to make sure I was clear. For the audits in progress, the one with the Department of Public Works with the estimated completion date of October. You mentioned it was suspended. Was that before this was put together or is the October date when it is going to get done, or is it suspended for now? MR. BENNER: No, we are definitely re-engaging with the department. I think we all know that we have an interim Director there at present. We're trying to be mindful of all of the balls that they are juggling right now. And I would say, of the audits in progress, that's the one that we need to hold out the most flexibility for, in terms of concluding it. But we have quite a bit a substantial amount of work already done on it, and we will run this to the finish line. MS. KIMBALL: Great. I just wanted clarification on that. I yield, Chair. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kimball. Okay, seeing no further discussion from the Council. My question was in alignment with Ms. Kimball's. Thank you for asking that, Ms. Kimball. Second question. Mr. Benner, given the recent—let me get the correct wording so I won't say anything wrong—given that we had a recent housing official charged with allegedly taking $2 million in kickbacks, is there any plan for the Auditor's office to dig into what is going on within that arena? Page 7 FC-39 July 19,2022 MR. BENNER: Well, we don't generally conduct—well, we never conduct investigations where there are criminal investigations running that might interfere with the scope of work that we would perform. We have some interest in what is going on in the Housing department that I can't really elaborate on at this point. But there are some areas in that department of interest. I think one of the beautiful things about this plan, and really seeing it as a multi-part series, is that it will allow us, after doing some initial assessment, to determine what is mission-critical and what is good, and what may be flexibly replaced with an unplanned engagement. So this kind of builds in some flexibility to do a little bit more unplanned work. And where Housing aligns to that, I think that is really going to start with some dialogue with that department, and we'll have to develop it from there. Certainly, we've been reading those articles and we have been paying attention to what we've seen from the public and in the media, and there is substantial interest in it. CHR KANEALI`I-KLEINFELDER: Thank you. Thank you for saying that. And I understand what you're saying, this can allow us to possibly do that in the future. I guess this kind of an issue really casts a shadow on all of the County, I mean, and it crosses between counties and it goes all the way to the State. And so I really do think this should be a priority, given your office's ability as you move forward. I think that would be wonderful to put some light into that area. So, thank you. MR. BENNER: Thank you, Council Member. CHR KANEALI`I-KLEINFELDER: Yeah, okay. Mr. Benner, appreciate your time today. Council Members, anything else? Okay, seeing none. We have a motion on the floor to close file on Communication 867, all in favor? Vote on Comm. 867: The motion to close file on Comm. 867 was carried Filed the following voice vote: Ayes: Committee Members David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder–8. Noes: None. Absent: Committee Member Chung– 1. Excused: None. CHR KANEALI`I-KLEINFELDER: Thank you. Moving on to our next order of business, sir. Page 8 FC-39 July 19,2022 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) Postponed: July 5, 2022 (Note: There is a motion by Ms. Lee Loy, seconded by Ms. Kierkiewicz, to recommend adoption of Res. 445-22.) (Note: Comms. 850.1 and 850.2, from Finance Director Deanna Sako, transmitting proposed amendments to Res. 445-22, were circulated.) (Note: At this time, Housing and Community Development Administrator Susan Kunz and Hope Services Chief Executive Officer Brandee Menino came forward to address the member of the Committee.) CHR KANEALI`I-KLEINFELDER: Mahalo, Mr. Clerk. We do have joining us today via Zoom. Ms. Brandee Menino as well as Ms. Susan Kunz. Council Members? Ms. Lee Loy. MS. LEE LOY: Thank you, Chair. I just wanted to direct my colleagues to Communications 850.1 and 850.2, which are being advanced by the Administration, and I think we have to make a business decision as to which this body prefers. I'm looking for guidance for that motion as to which one would be advanced to amend this particular resolution. CHR. LEE LOY: Thank you, Ms. Lee Loy. MR. INABA: Chair? CHR KANEALI`I-KLEINFELDER: Mr. Inaba. Page 9 FC-39 July 19,2022 MR. INABA: Yeah, I'm looking at the transmittal, I think the intention was to take both up, starting with Communication 850.1. So, I'll make a motion to amend Resolution 445-22 with the contents of Communication 850.1. Motion to Amend: Mr. Inaba moved to amend Res. 445-22 with the contents of Comm. 850.1. Seconded by Ms. Lee Loy. CHR KANEALI`I-KLEINFELDER: Council Members? MR. INABA: Yeah, Chair. This was just to add the word "option,"which I pointed out last time was missing. So just that small change, but making sure that the language is reflective of what we intend here. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. I think it would be good to check in with the Administration regarding the communications in front of us, and with the Director of Hope Services Hawaii, regarding the two options that we have in front of you. As Ms. Lee Loy stated, kind of a semi-business decision that we need to make here. Ms. Kunz, we're looking at two different communications that came with Resolution 445. Maybe you can help us out, one is for two 18-month periods and two 12-month periods. Could you shed some light on this for us? MS. KUNZ: Yes, thank you. My name is Susan Kunz, and I'm the Housing Administrator for the Office of Housing and Community Development. I am in support of those two communications to make those corrections. I have asked the Finance Director to assist with changing the reso. that reads from two 18-month option terms to two 12-month option terms. So I'm in agreement with that. CHR KANEALI`I-KLEINFELDER: Mahalo, Ms. Kunz. MS. KIMBALL: Chair, this is Council Member Kimball. Just so you know, Director Sako has joined us in the Hilo Chambers. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kimball. And I wanted to touch base with just to provide information to the Council before we get into the discussion. Ms. Menino, if you could provide some information on the change from 18-month periods to 12-month terms? Point of Order: MR. INABA: Chair,point of order. The motion right now is to amend—for the word "option." We can maybe get to the 18 to 12 when we get to the next— CHR. extCHR KANEALI`I-KLEINFELDER: Okay. Okay, fair enough. Ms. Menino, if you could just give us a second? We're going to go through our process and then we'll come back to you, thank you. Okay, Council Members, we have the Page 10 FC-39 July 19,2022 motion on the floor to amend Resolution 445-22 with the contents of Communication 850.1. All in favor? Vote on Motion The motion to amend Res. 445-22 with the contents to Amend: of Comm. 850.1 was carried by the following (Approved) voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. CHR KANEALI`I-KLEINFELDER: And I would like to go directly to Communication 850.2 for discussion if we could, Council Members? Motion to Amend: Mr. Inaba moved to amend Res. 445-22 with the contents of Comm. 850.2. Seconded by Ms. Lee Loy. CHR KANEALI`I-KLEINFELDER: Council Members, discussion? Okay, Ms. Menino, if you could? MS. MENINO: Aloha. CHR KANEALI`I-KLEINFELDER: Thank you for joining us this morning. MS. MENINO: Thanks for having me. CHR KANEALI`I-KLEINFELDER: So we have in front of us a communication to amend the terms for the contract from two 18-month terms to two 12-month terms. So I just wanted to just have you provide some information to the Council on why the change and why the decision was made. MS. MENINO: To be clear, I didn't give any insight into the timeframe. I typically just take the direction of the Office of Housing Administrator. CHR KANEALI`I-KLEINFELDER: Okay, so no issues? MS. MENINO: No, either. CHR KANEALI`I-KLEINFELDER: Thank you. Okay, thank you for joining us today. Ms. Kunz, mahalo for your insight, as well. Council Members, discussion? Mr. Inaba, go ahead. Page 11 FC-39 July 19,2022 MR. INABA: Who initiated this change from 18 to 12, was it Housing or Finance? MS. KUNZ: That was me, Housing. MR. INABA: Okay. And the reason? MS. KUNZ: We normally do lease extensions or options for a 12-month period. I honestly didn't understand the 18-month, and so I wanted to make the correction to align it with our other leases. There was no programmatic reason for it to be 18, so I wanted to make that correction. MR. INABA: Okay. Thank you, Ms. Kunz. I'll be supporting the amendment. Thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. Ms. Villegas, go ahead. MS. VILLEGAS: Yes. Thank you, Ms. Kunz, for bringing the timeline more in alignment with the other contracts that you guys work with. I'll be in support of this. And then afterward, looking forward to some information from both you and Ms. Menino on the current status of the facility, and how we move into a longer term plan for that facility and Kukuiola. Yeah, so I'll just wait. I'll wait for that after we get through this part. So I will be supporting this communication. I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Villegas. Mr. Richards, go ahead. MR. RICHARDS: Yeah, thank you. I think Mr. Inaba had asked about some metrics, and I support it, concerning some of the success metrics of this. Do we have anything with that, as of yet? MS. KUNZ: Yes. If I may? I will—I've asked Brandee Menino, who is the Chief Executive Officer for Hope Services, to join us today, and she will definitely be able to speak to that. I also want to take the time to mention that Mr. Matson Davis is also in the Kona Chambers today. You know, I see this discussion as having kind of two distinct discussion areas. One is the performance and the activities that are happening at the West Hawaii emergency shelter. And I think the other discussion is the long-term strategic planning and the work that this Administration, the Office of Housing, has been doing with the business community on Pawai Street, and that's who Matson Davis does represent. So as this discussion moves along, I'm hoping to give him an opportunity to speak, as well. Page 12 FC-39 July 19,2022 MR. RICHARDS: And I won't disagree that there are two separate, but they are tied together, as in why would we extend the lease, if it's not working. Though I appreciate what you're saying, Susan, they are very tied closely together. Thank you, Chair. I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Richards. Going to Hilo. MR. CHUNG: Yeah, I have a question. CHR KANEALI`I-KLEINFELDER: Mr. Chung, go ahead. MR. CHUNG: Yeah. Susan, so how isor how are these two 18-month term, or options, going to be exercised, administratively or with the approval of the County Council? MS. KUNZ: I think with them coming through as communications, it might need the approval of the County Council. MR. CHUNG: You think or ? MS. KUNZ: I'm not exactly sure. MR. CHUNG: Okay. MS. KUNZ: Yeah, I communicated with the Finance Director yesterday about my concern and my wanting to amend that language. And the Finance Department made that communication—coordinated that communication. MR. CHUNG: Okay, because normally when you have options built into a contract agreement, you know, those thingsI mean, I cannot speak in government terms, but it can just be done by the parties. And I don't see anything here that requires any further action by the County Council. And I'm not saying that it should be, I really don't. I just want to know what the process or processes would be. But you know, I'll be supporting this in as much as the persons who raised concerns about it. And you know, I think it's okay. There's going to be a greater discussion during the main motion, but I just wanted to see if—maybe we can get some answers from the Finance Department later on. Thank you. MS. KUNZ: Thank you. Thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Chung. Okay, Council Members, seeing no further discussion. We have on the floor a motion to amend Resolution 445 with Communication 850.2. All in favor? Page 13 FC-39 July 19,2022 Vote on Motion The motion to amend Res. 445-22 with the contents to Amend: of Comm. 850.2 was carried by the following (Approved) voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None Excused: None. CHR KANEALI`I-KLEINFELDER: Okay, Mr. Clerk, we have nine members in favor. Coming back to the main motion, Resolution 445-22. Discussion, as amended? Mr. Inaba, go ahead. MR. INABA: Thank you. Perhaps, the Office of Housing, I don't see anything in our folder here, so is there any kind of documentation showing what has been going on there, and what will be going on there? Those were my questions at the last meeting. MS. KUNZ: Okay, so I will take this opportunity to reintroduce Brandee Menino, and I think she can talk us through the activities that have been at this site. Go ahead, Brandee. MS. MENINO: Good morning, everybody. Thanks for having me. For those of you who have not seen the site at the Friendly Place campus, there are actually three programs on site. It started in 2006 with our resource center. What's available there are a hot shower; meals, a continental breakfast, and lunch; storage lockers for those to store their personal items; and a place where they feel safe, feel connected and get connected to outreach workers, and get them on a pathway to permanent housing, and/or access shelter on site. The second program on campus is an emergency shelter with 31 rooms that are private rooms with a lock-door of their own, but with shared congregate spaces for restrooms, and the unused certified kitchen. And that program was opened in 2010. The third program is the permanent supportive housing called Hale Kikaha, which was built and opened in 2016. So it was a continuum of services that were created by the community, for the community, to address the rising numbers of people experiencing homelessness in the Kailua-Kona area. In our last homeless point and time count, I think volunteers and outreach workers counted,just in the specific Kailua-Kona area, about 134 individuals in a given Page 14 FC-39 July 19,2022 day. So we use that as the benchmark of like how many people are residing in the Kailua-Kona area. Every year it's collected. This lease is really just that, a lease. The work that we do as an organization at the housing focused organization is to provide these services. But we compete competitively on a state and federal level for resources. There is no County dedicated funding for this project for operations. So the performance metrics that were governed by the contracts there are over ten contracts that were governed by—we follow federal compliances, state compliances, and then fundraise because those contracts do not cover the cost necessary to operate just the basic services of engaging with people who are experiencing homelessness, get them on a pathway to housing. Meaning getting them document-ready, helping them apply for housing through housing applications; helping them obtain their I.D.; establishing a mailing address because oftentimes that's what they don't have; waiting for these documents to come in; and then get them into an affordable housing rental. So besides Hale Kikaha, which is on site, that's the 23-unit studio with its own bathroom and kitchen. We depend on the market community for rental unitsto help find and secure and look for affordable housing. So with the challenges we are facing today with the affordable housing rental market, you know, it stops—keeps them longer at the shelter. But our goal with our performance-measurable outcomes with the State contract is for their stay to be no longer than 90 days. This is the shelter that actually—we don't need that benchmark because it takes a long time, about 120 days to get them into permanent housing. The other metrics that we measure is the number of people that remain in housing after two years. How many of those we encounter increase their income while they enrolled in our program? How many people increase non-employment cash income. It could be insurance, being they're connected to mainstream benefits; SNAP (Supplemental Nutrition Assistant Program) benefits; Medicaid, getting them connected to insurance providers. And the other fifth metric, is helping participants increase their total income. So these are really the five measures. We do track like the number of showers, meals, and lockers because we have other philanthropic dollars that ask us to do that, but all of that doesn't really relate to the metrics of are we moving the needle and getting people on the pathway to housing as quickly as possible. It's just really those data metrics that matter that I actually have presented before the Community Alliance Partners. Let's see—so in each of the programs, we raised about$500,000 for the West Hawaii Emergency Housing Shelter. That's including staffing the site 24/7, 365 days a year. And during COVID (Coronavirus Disease) we were able to also have additional funds for the COVID. That funding allowed us to put a COVID safety monitor at the gate. Because as most of you have to do, we have to do the Page 15 FC-39 July 19,2022 same thing and follow CDC (Centers for Disease Control and Prevention) guidelines, with temperature checks. There was a period of time when we didn't allow any visitors,just who are receiving services. There was a period of time when we had to manage the number of people that were on campus. So all of these COVID restrictions created a congregation in front of the gate In 2010, there was a photo I think in the paper, where you could the tents at the driveway, right? There are two things that impact our operation, and I'm going to say it twice, sweeps and sweeps. So every time there is a sweep in the community, it impacts the Friendly Place Campus. The example was the driveway that I mentioned. There's a sweep in the community. They are being informed to come to the Friendly Place to receive help or to take shelter. When we are informed, we are able to inform the enforcing agency whether or not we have shelter beds available. When we don't have beds available, and at that time we didn't have any beds available, they made camp in front of the driveway. So we get community pressure regarding that. But there are no other services we can provide onsite. We're not able to provide them shelter. So in working in partnership with the County, the County built the Ka Lamaku, which is the Old Kona Airport micro-shelters, to put that up for temporary sheltering. That additional program eliminated the tents that were the encampment that was growing at that time, along with us opening an additional 44 beds at our nearby Holiday Inn and Kamuela Inn. So those are just two examples. A more recent example was the sweep in preparation for a local concert, where 20 tents were erected in front of the Kona Aquatic Pool. We were then asked to come up with a solution. In that shelter, we were able to take in 20 residents that day, at the Friendly Place Campus as well at Ka Lamaku to help eliminate that encampment that was growing in Kona Aquatic Center. Back in 2017, the previous Administration created Camp Kikaha, again from another sweep that was the encampment in Old Kona Airport, and brought that encampment onto the Friendly Place Campus. And these are things that are beyond the organization's control, right? We did not want that Camp Kikaha to be on campus because we did not have the capacity nor the resources to manage another 60 people onsite 24/7. That was supposed to be like a 60-day temporary stay that ended up being eight months. So these types of activities do impact operations. And so those are kind of like the big key events, that like resonate with me when we talk about some of the challenges we've been experiencing at the Friendly Place Campus. This is a community. We are not able to do this without our community partners. There are over 25 partners that come to provide and deliver services onsite alongside with us, from preparing meals twice a day; JustServe Ministry, Livingstone Church, Saint Benedicts, United Methodist Church, as well as other Page 16 FC-39 July 19,2022 things to help during COVID were COVID testing, COVID vaccinations. We were able to do that in partnership with Premier Medical Group, and now Project Vision. The Department of Health comes onsite to provide TB (tuberculosis), (inaudible) and medication, and monitoring. We're able to do a lot of our upkeep with our maintenance with the University of Nations and YWAM (Youth With A Mission), in meal prep, yard maintenance, haircuts, and community events. The list goes on and on. MR. INABA: Brandee? MS. MENINO: Yes? MR. INABA: Thank you. I'm just wondering if these metrics or this data is provided. Susan, do you have this information, and are we tracking what Brandee is sharing about? And can that be provided in writing to the Council? MS. KUNZ: Thank you. Like Brandee was mentioning, these reports are actually prepared for the State and the Federal government for the funding that she receives those services. But we do get copies of these reports, so I can share them, yes. MR. INABA: Okay, and that's specific to that location? MS. KUNZ: Yes. MR. INABA: Okay. And moving forward, the expectations or—you know, what are we looking to have in this contract that you're going to be negotiating with Brandee folks, as to what is going to happen there? MS. KUNZ: It's a lease for real property. Pretty standard that we do for most County real properties, but in addition because of the nature of work that goes here. You know, the lease—it's still in draft form. We are still negotiating and working with Brandee. And I think the other important piece is our work with the business community. Although they really don't have any jurisdiction on what goes on inside the fence, they are definitely impacted by what goes on outside the fence. So we want to make sure that we're transparent and we're working with the business community. So we will continue that communication before we finalize the lease. Reporting requirements, you know, discussion about levels of security that's necessary you know, I'm kind of thinking off the top of my head right now but policies for how the shelter is run, things like that. There is language in the lease that will refer to that, as well. Page 17 FC-39 July 19,2022 MR. INABA: Okay. And was there a competitive bid process for this lease, or how did this resolution come before us? MS. KUNZ: No, there was no competitive bid. You know, this is an ongoing lease, and what we are asking here is to renegotiate the extension of this lease. So if you remember, there's no procurement requirement, right, to procure County real property, technically. Although we do engage in that procurement for certain sites for projects, but there was not one on this one. MR. INABA: Corporation Counsel, can you come forward please, and just explain to us, making sure—what triggers a competitive process to be undertaken for lease of real property? (Note: At this time, Corporation Counsel Elizabeth Strance came forward to address the members of the Committee.) MS. STRANCE: Good morning, Elizabeth Strance, Corporation Counsel. I'll have to get back to you because I think what you're wanting is kind of the landscape for lease of property and landscape for procurement. And sometimes the County may lease property for certain purposes, and then they'll have other agreements on top of that to lease out the property or to have services performed on the property. And so what sounds like a pretty simple question may be a little more textured. So what I'd like to do is be able to feel more comfortable in the information that I give you, and know that it's helpful. MR. INABA: Thank you. Last question for now,this resolutionI asked this question at the last meeting, that this resolution is to cover two-year lease periods, starting March 3rd, 2022, so we're well over four months into this period, and we're doing things in hindsight. So can you explain how this is happening, or how—it's been there four months without this resolution being in place, is that right? MS. KUNZ: Yes, unfortunately, that is correct. The lease did end in March. My staff had reported to me that there was a delay in getting the resolution together. And addressing the mission, this is not how, obviously, I would like to operate. We have been working very closely with the Corporation Counsel to make sure that we're not exceeding the timeline to do a kind of a backdating on this lease. MR. INABA: Okay. So as part of the lease moving forward, on your part as the Housing Administrator, are you articulating clear expectations or parameters by which this organization will operate in this space, saying minimum 30 beds, or minimum—are we articulating those requirements or expectations as part of the lease or some formal agreement here? Page 18 FC-39 July 19,2022 MS. KUNZ: Yes. You know, and so part of what we do is, you know, we view the guidance by the State and the Federal Government who is authorizing the funds for the operation. So if what I'm reviewing is aligned with what we would like to see, there's a sense of I guess securing, right? Knowing that the funding piece and the regulations that are driving that are in place. But yes—and then the lease agreements will also state that there is that alignment. MR. INABA: Yeah, I think it's good that we have funders who have regulations, but we are also putting out our own resources as a County, that I think we should have our own expectations that are articulated and agreed upon with these organizations. So I'm going to yield for now, to hear from my colleagues. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. Mr. Richards, go ahead. MR. RICHARDS: Yeah, thank you, Chair; and thanks, Mr. Inaba. This is to the point, and very pointed. I appreciate raising the questions about the metrics, and we know we need it, but we have to know that it's actually working. And so I'm looking forward to seeing some of these metrics. I think blindly funding without seeing success, is not being sensitive to the constituents who are asking. Thank you, Chair. I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Richards. Ms. Lee Loy. MS. LEE LOY: Thank you, Chair. Thank you for the information. I think the space that I find myself in is the timeliness of this. And we're still looking for answers. I hear that I find my colleagues asking a lot of questions, and just as recent as Judge Strance, she would have to get back to us. So it's getting to be very challenging to make a good business decision on what we know is needed for community. And I'm actually looking for some assurances, not only for this lease, the process, but also some of the ministerial decisions that are being made by individuals without checking back with the Council when it's our duty to fund these positions or advance these contractual obligations. And I would just—I'm having a lot of reservations about, as Mr. Richards said, blindly advancing some of this without truly knowing what the expectations are, what we're getting in return, and then the true measures of the program's success. I'm actually leaning towards another motion to postpone so that we can get all of the information that my colleagues are asking for at this time. But for right now, I'm just going to listen to what the rest of my colleagues, specifically those in Kona, where this project is, and if it is really providing the success for community that they're looking for. Thank you. I yield. Page 19 FC-39 July 19,2022 CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Lee Loy. Ms. David, go ahead. MS. DAVID: Thank you, Chair. Thank you, Ms. Lee Loy, for touching on that subject. Because my question to Administrator Kunz, and this might be another question that Corp. Counsel may need to look into, in that lease, is there any provision for like carry-over given the fact that Council Member Inaba noted, that we are far behind since the lease expired. and basically contracting to do another lease? And I'm just wondering whether the lease that did expire had any provisions regarding what we're doing right now,which is basically putting this on hold until we can negotiate—or the County can negotiate the lease, a new lease. And also, the issue about our ability to backdate a legal document, and what kind of provisions that we have that will allow us to consider that. I know it's probably something that needs to be checked into. But that's my concern in the process of this all. And as everyone here, I think, is concerned that we make a decision based on, as much as possible, processes and procedures that we are allowed to do. And that's my only question. And I appreciate it if you do not have an answer right off the bat, I totally understand that might be something that we need to come back with after research. So thank you, I yield. MS. KUNZ: Can I make a comment? CHR KANEALI`I-KLEINFELDER: Go ahead, Ms. Kunz. MS. KUNZ: So I really do, I appreciate the concerns. I'm checking in with staff right now to see if there is a provision because I don't have a copy of the lease in front of me. I honestly don't believe that there's a provision in there. But these are some of the things that I had just recently, yesterday, and discussed with our Corporation Counsel. She assured me that the Corporation Counsel has looked at this and that they would not have a problem legally in us backdating this contract or lease to April 1st, number one; and number two, assured me that the procurement laws that are in place, that we are not violating that, as we move forward. I'm sorry, I don't have the HRS (Hawai`i Revised Statutes) off the top of my head, but I know Malia Kekai who is our Corporation Counsel does. I was hoping that she might be available to jump on, but it doesn't seem like she's responding right now. But I want you to know that we've had these discussions. And I also want to state that if we do not move forward with this lease and provide an opportunity to continue these services, I cannot imagine what the impact of homelessness that's currently going on in Kona, what it's going to look like without this facility running. And I do want to point out, this is not the best conditions, right, to operate. But the situation that happened at the Kona Page 20 FC-39 July 19,2022 Gym you know, Brandee and her team did, while continuing to run the West Hawaii Emergency Shelter, and doing the outreach work and bringing those people to the facility. So I think it's important to recognize those valuable resources that we have, and this partnership with HOPE Services. Thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kunz. Going to Hilo. MR. CHUNG: Yeah. CHR KANEALI`I-KLEINFELDER: Mr. Chung, go ahead. MR. CHUNG: You know, I didn't want to get off topic, but since you're calling on us, I just wanted to ask Corporation Counsel Strance on that question, about the options. (Note: At this time, Corporation Counsel Elizabeth Strance came forward to address the members of the Committee.) MS. STRANCE: Good morning, Elizabeth Strance, Corporation Counsel. MR. CHUNG: Good morning, Judge. You know, I just wanted your opinion as to this provision regarding the two 18-month options. Just off the top of your head, is that going to be exercised administratively or by the action of the County Council? MS. STRANCE: Off the top of my head, it would be exercised administratively because the resolution itself is authorizing the option periods. So that's part of the authority granted in the resolution. MR. CHUNG: Okay. And that's what I think, too. That's all I wanted to ask. Thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Chung. Ms. Kimball, anything to add? MS. KIMBALL: No not at this time, thank you. CHR KANEALI`I-KLEINFELDER: Thank you. Okay, Ms. Villegas. MS. VILLEGAS: Sure. I just want to thank all of my colleagues for your support in kind of digging deep on to this issue. And in light of some of the recent news about behaviors and challenges within the Department of Housing, I feel for you, Ms. Kunz. It's really got to be a challenging time to sit here in the hot seat. But I appreciate the fact that we're all kind of enduring this uncomfortable conversation, Page 21 FC-39 July 19,2022 and recognizing this process isn't flowing in the way we all would have liked to see it flow. I have a quick question about—and maybe Ms. Menino can answer this. How many homeless transitioned out of this facility into permanent supportive housing or any type of housing? MS. MENINO: Our data shows that 37 percent of those who exit our shelter going to permanent housing. So last year—our last year's numbers are kind of skewed because we've only been at half-occupancy due to construction at the shelter. So we've only served 56 individuals last year. We normally would serve twice that much. Sorry, I'm trying to do the math on my calculator. But it was 37 percent of the 56 individuals we served last year. That we're expected at the State level to move 20 percent. Thirty-seven percent is actually the State average. Our other shelters actually perform better. The challenge with Kona is just, again, the affordable housing rental market and finding housing in Kona. So it's a direct correlation of moving people into housing. It will continue to be a challenge if affordable housing is not available for this community in Kona. But we exceed the expectations of the federal and state contracts in our performance. MS. VILLEGAS: Okay. So out of last year, there were 56 people in the facility, and 21 people then at 37 percent were housed, and that's considered a success rate according to the State grants that you guys apply for and receive. What's the annual income, or earnings for HOPE Services? MS. MENINO: We raise $1 million for that campus every year. MS. VILLEGAS: I'm sorry? MS. MENINO: $1 million for three programs, staffed 24/7 at the shelter. So most of that cost is staffing, 24/7, 7 days a week, 365 a year, so $1 million. You know, so it's about$500,000 for the shelter, $300,000 for the permanent supportive housing to provide support services, but another $300,000 for the resource center and the outreach team that's connected to that resource center. MS. VILLEGAS: And what percentage of HOPE Services total budget(inaudible) MS. MENINO: Our annual budget is about$14 million. MS. VILLEGAS: So a little less than 10 percent, at your Kona facility? MS. MENINO: That's correct. MS. VILLEGAS: Okay. Page 22 FC-39 July 19,2022 MS. MENINO: Most of the funds in the budget, we're one of six organizations pushing out rent and mortgage assistance. Well was mortgage; now it's just rent. We provide rental assistance to over 250 households in the community island- wide. Much like Section 8, a dedicated Federal and State resources for rent subsidies. We also manage nine facilities island-wide, in Pahoa, Hilo, and the one in Kona. MS. VILLEGAS: Okay, thank you. What would your definition be of the number of individuals served? MS. MENINO: We serve about 1,500 individuals, our organization, every year. MS. VILLEGAS: What constitutes, saying "individuals served?" Is that somebody that walks into the facility, is that somebody that lives there, is that somebody that utilizes the lockers? MS. MENINO: Yeah, our contracts require us to enroll. So the number of persons served is those we've enrolled, not the number of persons we've touched and encountered. MS. VILLEGAS: Okay. So it sounds like according to the State standards, which is where a lot of the grant funding comes from, which encompasses that $14 million in annual—essentially funds to work with for HOPE Services. I'm just going to get to the point, the challenge is that people are really frustrated in Kona. This facility has been up and running for years and under the constructs of a Housing First model, which after many conversations has an 80 percent success rate I'm told, in getting people transitioned and off the streets long term. I don't know that that's happening in this facility, but what is happening is the community's overall perception that it's not working. And the Housing First model, I have people that report to me that the reason that it's hard to find staffing is that people don't want to work somewhere where there are active drug deals happening within the housing resource center. Myself and Matt Kaneali`i-Kleinfelder were at the facility on Friday for a great event, that it was wonderful to connect not only with those in our community who find themselves houseless, one of whomI had to chuckle—played sports on the field when I was at Konawaena. He was playing football, and I was playing soccer. So that connectivity and that relationship-building, for us knowing who these people are more often than not in the community, where we see their faces all the time. But there is a strong feeling of dissatisfaction, unfortunately, with the services being offered through HOPE Services. And I'm just being honest with those things. There are questions about resource allocation—if you just give me another moment here—which is really a challenge. It's something that I shared at a homeless leadership conference a week ago is, how do I in my position work with Page 23 FC-39 July 19,2022 County Administration and the nonprofit organization that has currently been essentially employed, or provided resources to provide the service to our community when the community is fed up. You know, they're asking questions like, does the County go out to bid and potentially work with other organizations? And how does it get decided where funding and resources get placed? And so I know that we're navigating a challenging time. I know that it's hard to keep staff. It's hard for even the finest establishments to keep people working there, let alone somewhere that you are face-to-face with challenges that are heartbreaking and gut-wrenching, and some of them unsolvable. My own brother was homeless and schizophrenic and has since passed, which is quite often the fate of those with mental health issues who end up on the street. However, in this role and in this place with the requirement to sit here and represent our community who struggle with this relationship and the trusts that aren't as strong as I'd like to see them be. So the hope is moving from this. I also don't like the feeling that if we don't say yes, what does Kona have? Nothing. And that doesn't feel good either. So I don't like being in this position. But it's kind of a time to pull off the Band-Aid, make some statements. Things have got to change. They got to improve. There need to be longer-term plans. You know, how do we support those relationships? I know we have Mr. Davis sitting here, and he's put a lot of time, effort, and resources into rehabilitating Pawai. In a perfect world, it could all co-exist but there are a number of challenges there. So I want to get to the solutions. How do we find you guys the staff that you need? How do we improve the capacity of this facility to authentically move people into longer-term housing? How do we eliminate the drug abuse and the physical abuse and the things that are happening? How do we get community policing to restore their faith and get ourselves aligned so we can continue to move in the future as a community with a vision, and the means and the steps to bring it to fruition? So thank you, Chair, for the extra time. And at this point, Susan, if it's okay, would you be okay with Mr. Davis coming up and sharing what you had in mind? MS. KUNZ: Yes, I would definitely love to call him up. But if you don't mind, I just want to make a comment. MS. VILLEGAS: Sure. MS. KUNZ: Council Member, I really appreciate the comments and the direction that you're going with your comments. I was very happy to see that you and Council Member Inaba attended our leadership workshop about a week ago. So we were all in the same room together, and we talked about how the challenges of Page 24 FC-39 July 19,2022 homelessness are beyond any single one of us, right; that we need as a community to work together. It's a thankless job that our vendors have, the frontline people. It's a huge responsibility that they have, and they cannot do it alone. You know, the trainer kept talking to us about making sure that as a community we are constantly recognizing the successes while we're working together to try and address the challenges, and we want to continue doing that. I think the big piece that Hawai`i County has right now is we have funding resources flowing in that we've never had before. And so we are moving forward with a long-term, five-year strategic plan, with funding and a plan going forward. I think that what's going on at the shelter and our other facilities are all on the table. We're going to be looking at all of that. So I really appreciate to hear your support and your engagement to work with us. The same thing that we've been doing with Matson. So I will call Matson up at this time. Matson Davis is the Managing Partner of Manini Holdings. We have set up reoccurring monthly meetings. So Brandee, her team, the Community Police Officers, the Mayor's Office, and myself, we all are starting to meet monthly to work on the challenges that are specifically happening on Pawai Street, since he is the leaseholder for all of these properties. So, I'll turn it over to Mattson now. (Note: At this time, Mr. Mattson Davis came forward to address the members of the Committee.) MR. DAVIS: Thank you, all. My name is Mattson Davis, and I am the Managing Partner of Manini Holdings, which is the founder or creator of Brew, there at the end of Pawai. In one part of my career, as was the President and CEO (Chief Executive Officer) of Kona Brewing Company, and have been very involved in that property since 1997. I think what my take on this whole thing is this is a really obviously big situation here. I believe that the Department of Housing should be given the right to negotiate an extension on this lease or a new lease, for a couple of years. I think the option should be both-sided, but if it's not working for the County they can kill it if the—so the Administration can do that. And if it's not working for HOPE Services, they could kill it, you know, terminate it at that time. Kill is not a good word. This is all about housing. You can't find anybody to work here if you can't get them to live here. I presented Brandee with an option the other day that the new owner of Uncle Billy's is willing to allow her and HOPE Services to use a couple of rooms. So the staff that's coming over, only two of them for the west side, you know, for housing, to come over from Hilo to spend the night, a couple of nights. So they're getting a full day's work instead of a half-day driving and a half-day Page 25 FC-39 July 19,2022 working. I mean, how disruptive is that, right? If you answered your phone every time it went off, how would you get these things done, right? You've got to stay focused. So, I think it all starts with that. I think this is a mental health there is so much to it. Mental health, substance abuse issue, and it's a small group of people, really, that's causing the problem. When I spoke to Susan yesterday about this, the commitment that I got was that there would be a return to 24/7 security at the front door of the shelter, and that would allow for a movement of those people that are blocking the sidewalks and all the traffic that's going on right at the front, which is a direct result of some movement. It ebbs and flows, okay, in that area. But if that is a facility and a safe place, then it needs to be managed safely within a distance. It's like a geonet. It just starts right at the front door there. It has to be a little bit bigger area than that so that those people that are coming for safety get that and aren't preyed on. You know, there are a lot of stipulations that go on. And I don't know if you guys knew this, but Senator Inouye was an orphan, so he very much believes in finding places for housing for people, and that was a big push for him to get that financing. This plan—and I want to thank you all for Bill 111 and the approval of the funds of this second-tier residential tax, which will allow the director and the Housing Department and multi-agencies to come up with real plan, one that can go on for five years, instead of spending half the year every year scrambling for more funds. So, am I satisfied with what's going on next door? No. Do I have other ideas and plans, you know, ideas that could happen there? Absolutely. But we have to—we can't just stop right now. It's unfortunate that housekeeping, the Administration, did not have the right tools in place, to know six months in advance that this was going to be, you know, time to renew, and what that was going to look like. So where I'm at iswe spend—we have 24/7 security, and right now in the last month, the month and a half, Stefanie Gubser, who is the Operations Manager for Manini, had up to 30, 40 percent of her time has dealt with this to make a safe place for the visitors and locals that come now down the street. It is zoned Industrial. It is now an exciting and vibrant area. You all know that last week Lili`uokalani Trust put on the block 95 acres of the Kona Business Park for sale. What's going to happen down there? Private is going to come in, spend a lot of money, and there are a lot of changes that are going to be happening. You guys are going to be asked to coordinate and communicate again. Director Kern is very optimistic about an area that was zoned in 1950 for Industrial to be density, to create some of these housing solutions that we have. Page 26 FC-39 July 19,2022 You know, it all comes to housing. We can't get people to work because we don't have a place to live. The price is over the top on the cost. Guess what that comes to, water and sewer? Seven out of nine of the issues with the housing solutions and affordable, all in Waikoloa because it's private water and private sewer. So get back brass taxes. You know, get back to the basics. You know, we have got to figure out a way to make—expedite it. Get on the phone with the Governor; tell him we need emergency proclamation, and then you get the Mayor online for emergency proclamation, so we can get additional dwelling units ready. We can get long-term rentals put back to place, and everything. So back to your question, am I satisfied with what's going on there right now? No, I'm not. Am I a partner and am I NIMBY (Not In My Backyard)? No, I'm not. I've been engaged in that area, and spending, and investing, and working with them time and time and time again. So we need security 24/7. We need to make it uncomfortable to camp out front right there, and give them places to go, eventually. MS. VILLEGAS: Thank you, Mattson. MR. DAVIS: You're welcome. MS. VILLEGAS: I appreciate that. Ms. Kunz, was there anything else you wanted to ask? Careful, he might tell you his whole plan for the County. MR. DAVIS: She knows it. MS. KUNZ: Well, we've been in contact quite a bit. Thank you very much, Mattson. I appreciate your partnership and your support. I don't have any other comments. MS. VILLEGAS: Great. Thank you. I yield. CHR KANEALI`I-KLEINFELDER: Thank you very much, everyone. Mr. Inaba. MR. INABA: Yeah, I still would like to see the report; and until we have that report—I'm always, I think, a stickler for having all the information, and especially now there is an eye on the County for housing development, and affordable housing, and homeless services. I can't support anything until I have the information. And perhaps we can also take a look at the current lease, so we know what has been in place over the last however many years this organization has been there. Page 27 FC-39 July 19,2022 I'm going to be supporting or perhaps making a motion to postpone until we do have that information. I don't think any of us here want to see services stop. What we're trying to do is being responsible and ensuring that our resources—and by giving out a$20 lease for two years, potentially four, with an administrative option extension, that this type of agreement works well and is providing the best services for our County and for our taxpayer dollar. I don't know if anybody else has anything to say, but I'll make a motion to postpone when this body is ready. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. MS. KUNZ: Can I make a comment? CHR KANEALI`I-KLEINFELDER: Ms. Kunz, I'm going to go to Hilo, and then I may come back to you. MS. KUNZ: Okay, thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kunz. Anything else to add Hilo? MS. KIMBALL: No, Chair. Thank you. CHR KANEALI`I-KLEINFELDER: Ms. Lee Loy, go ahead. MS. LEE LOY: Yeah, thank you. I'm going to be supporting Mr. Inaba's postponement. And simply put, these are all great, but the Council can't get over the simple hump of this is delayed, it's coming to us, and we don't have all the information to make a good decision. It's that simple. Mattson, we know the vision, right? This is one part of a bigger vision to make sure we also approve zoning for housing, right, and housing opportunities. And we're going to have to tackle that with what you mentioned about the NIMBY-ism, and that's some of the decisions that Council has to make. But we're still at step la here, which is we have an option to address homelessness, and we just don't have all the information to make a good decision. So Mr. Inaba, when you're ready I would love to support that postponement. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Lee Loy. Mr. Inaba, I have one question to ask before you postpone. MR. INABA: Thank you. I have one more question for the Office of Housing. Administrator Kunz, how long do you need to get this information, like the previous lease and what's expected moving forward, and what has been done there in writing? Page 28 FC-39 July 19,2022 MS. KUNZ: What I was going to ask you to consider is that, so that we don't delay getting these in place and extending this period any longer if we could move forward. It is very easy for me to get a copy of the lease and the reports from HOPE Services, that is not a problem; if we could do a vote on this resolution today, and it could be presented at the Council meeting, or even prior to the Council meeting. MR. INABA: Okay, an answer to my question, will you be able to provide all of the information this body has requested in two weeks? I don't support moving this forward to Council until we have the information. So I'm going to be making the motion and the body can vote on it. But I want to make sure that two weeks is enough time for you to get the information to us. MS. KUNZ: Two weeks is enough time. MR. INABA: Okay, with that, I'll make a motionOh, Chair Kaneali`i- Kleinfelder, sorry. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. Ms. Sako, are you in Hilo? (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: Good morning. CHR KANEALI`I-KLEINFELDER: Good morning. Thank you for joining us today. You've heard the conversation. I know you're aware of what's going on. I'm just going to go back to the simplicity of this,which is this resolution is the beginning of a negotiation for a two-year lease. As referred, we're four months behind. From where we stand right now, this lease needs to be handled so that the services are continued. Is it normal to get information or a report on what the services being provided by the lessee, which is HOPE Services' case, normal? This is simply just a Council approval for a resolution for a two-year lease for HOPE Services to continue services. MS. SAKO: So I think this particular resolution is, yes, for the lease, but there's also a contract to provide services. And Ms. Kunz can confirm, but I believe those are two separate documents. MS. KUNZ: We do not have a contract with them to provide services. The State and the Federal Government do. MS. SAKO: Oh, okay. Page 29 FC-39 July 19,2022 MS. KUNZ: We just have the lease. MS. SAKO: So this isso our only activity is the lease agreement. MS. KUNZ: Yes. MS. SAKO: So they need the space to provide the services. And if they don't have a lease, I guess they're not obligated to provide the services. MS. KUNZ: Correct. CHR KANEALI`I-KLEINFELDER: Okay, so the resolution in front of us is the multi-year lease, which is a Council-driven activity, correct? MS. SAKO: Correct. CHR KANEALI`I-KLEINFELDER: And is asking for details on what the lessee going to provide within our purview, as Council, in this discussion for Resolution 445? MS. SAKO: So I think that may be covered more by their contracts with the State and Federal government, so normally we don't get something like that. But it could be provided, it's just—you know, we're just trying to move the lease forward, so services can continue. CHR KANEALI`I-KLEINFELDER: So it can be provided, but not a requirement of this resolution? MS. SAKO: That's my understanding, yes. CHR KANEALI`I-KLEINFELDER: That's my understanding as well, at this point. I think Rebecca Villegas very well stated be elephant in the room, I'm a small business owner. I have dealt with homeless folks in and around my business. It can be very excruciating as a business member, and you guys are the backbone of our economy. I am also very aware of what HOPE Services is offering in the area and what happens if you don't provide the services. There definitely needs to be more communication between our business community in the area and HOPE Services and the Office of Housing. At this point though, I am more intent upon moving this resolution forward, getting the lease back in action, HOPE Services can continue to provide services, than I am about hashing out the details of what they're going to offer or not. It's going to fall apart. The business community needs some support, and the County and HOPE Services need to sit down at the same table with them. That's about as summed-up as I can see it after given this conversation today. Page 30 FC-39 July 19,2022 I will be supporting moving this resolution forward to Council and not postponing. That's my two cents. Mr. Inaba, you're welcome to make the motion. And with that, I yield. Thank you. Motion to Postpone: Mr. Inaba moved to postpone Res. 445-22 to August 2, 2022. Seconded by Ms. Lee Loy. CHR KANEALI`I-KLEINFELDER: Council Members, discussion? MR. INABA: On the postponement, Chair, I think there is some concern that services would stop. Services have continued for four months without a resolution. So I thinkagain, we need to have this information ironed out. Nothing is going to end in the meantime, in two weeks. There's no difference. But what we're trying to do here is ensure that we are very clear about what the expectations are moving forward. And we don't have all the information right now, so I'll ask for my colleague's support in postponing this matter until the next committee meeting. Thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. Ms. Villegas. MS. VILLEGAS: Something that became very clear to me during this conversation, which is oftentimes clear as mud, is that here we have a property that's provided through lease through the County, then we have services that are funded through state and federal, and much of the conversation here today is actually related to the quality, the quantity, whatnot of the services. And so, you know, I just I want to express my gratitude for this opportunity to even have these conversations because otherwise, in our County roles, we don't get to have this conversation, because other than a lease agreement, there is no direct line as there has been through this lease negotiation. So I very much want to see the report and the numbers that Mr. Inaba is asking for. I also recognize the need for a lease and paperwork, and things to be tidied up, which is what we all want. We want to avoid this in the future. I'm not particularly attached either way to whether or not this gets postponed or moves forward with a negative recommendation, or moves forward with a positive recommendation. So I'm willing to listen to the opinions of my colleagues here. But for me, that was just kind of a lightbulb moment of this is one of the beauties of the potential of collaborative work, and financing and provision by the different streams of government, being very local, and then state, and then federal, with a local nonprofit that works statewide, I believe, under the umbrella of Catholic Charities. But it also is an example of some of the challenges and complications, and at a time when we are at a tipping point with housing needs. We are not alone, though. This is not some reflection that the Big Island has blown it, and we have Page 31 FC-39 July 19,2022 missed the mark, and everybody else has figured it out. Because the New York Times had an article the other day, and it goes back to the 70's, and decisions that were made by government and private enterprises at that time. So, we are not alone here, unfortunately in this challenge and this struggle, and neither is HOPE Services and their challenges and their struggles. So how do we transition this challenge and struggle into an opportunity for more authentic connection and transparency with resources. Because $14 million is a lot of money, and $1 million a year is a lot of money, as well. So I'm not particularly attached to either way on postponement, but I'm willing to listen to my colleagues. So, I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Villegas. Ms. David. MS. DAVID: Thank you, Chair. I had just one question, I believe, for Ms. Kunz. On the postponement, in two weeks is there a risk that services might be halted for two weeks? That's all. MS. KUNZ: You know, I would need to continue my discussion with Brandee. But ultimately, it's going to be their decision, right, whether or not. But just based on our present commitment to end homelessness and address homelessness, I would say that she's willing to continue to work with us, but I can't speak for her. MS. DAVID: Okay. That's just what Imy concern, if there was an issue, then certainly we need to talk about it. But I'm totally in support given that there's some time for Corp. Counsel to come back with some answers, and also for you folks. So I'm willing to support this if it doesn't risk services of any sort. All right. Thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. David. Mr. Chung, go ahead. MR. CHUNG: Yeah, I'm going to be voting against the motion, and basically my feelings were articulated by the Chair. That's all I've got to say. Thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Chung. Ms. Kimball. MS. KIMBALL: Yeah, thank you, Chair. You know, I think I'm also going to vote just to move this forward at this time. The main reason being is I think that the work of drafting the resolution so that it's in the proper format, with the proper wording, has been completed. And then we can use the next session in Council to determine once Housing and HOPE Services provided us with the data that Council Member Inaba is asking for, we can make an up-down vote on the decision. But I think might as well move on this today. Thank you. I yield. Page 32 FC-39 July 19,2022 CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kimball. Okay, going back to Hilo. Seeing no lights on. Okay, we have the motion on the floor to the postponement of Resolution 445 to the August 2nd committee meeting. All in favor? Vote on Motion The motion to postpone Res. 445-22 to August 2, 2022, to Postpone: failed by the following roll call vote: Failed Ayes: Committee Members David, Inaba, and Lee Loy –3. Noes: Committee Members Chung, Kierkiewicz, Kimball, Villegas, and Chair Kaneali`i-Kleinfelder - 5 Absent: Committee Member Richards – 1. Excused: None. MR. HENRICKS: The motion fails. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Clerk. Okay, with that, we are back to the main motion to forward Resolution—well, sorry, do we have any discussion? Are we good to go, Council Members? Any discussion on the main motion, Council Members? Okay. So Mr. Clerk, a roll call, please. Vote on Res. 445-22: The motion to recommend adoption of Res. 445-22, Draft 2 as amended to Draft 2, was carried by the following (Approved) roll call vote: Ayes: Committee Members Chung, David, Kierkiewicz, Kimball, and Chair Kaneali`i-Kleinfelder–5 Noes: Committee Members Inaba, Lee Loy, and Villegas –3. Absent: Committee Member Richards – 1. Excused: None. MR. HENRICKS: The motion carries. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Clerk. Okay, moving on to our next order of business. Page 33 FC-39 July 19,2022 Res. 446-22: AWARDS A PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION MAINTENANCE FUND STEWARDSHIP GRANT TO KOHANAIKI `OHANA Approves a grant of$24,880 to Kohanaiki `Ohana, a 501(c)(3)nonprofit organization, to protect,preserve, and restore the `O`oma Beach property in North Kona, pursuant to Section 10-16(h) of the Hawaii County Charter. Reference: Comm. 853 Intr. by: Mr. Inaba Motion to Approve: Mr. Inaba moved to recommend adoption of Res. 446-22. Seconded by Ms. Lee Loy. CHR KANEALI`I-KLEINFELDER: Mr. Inaba, go ahead. MR. INABA: Mahalo. Yes, happy to have prepared this resolution on behalf of Kohanaiki `Ohana's work down at the park. We heard from Kona Council Member Karen Eoff today, who is heavily involved with her husband Gary, and Uncle Reggie, and others down there. But there is a lot of good work happening, and our community gets to see, you know, whether it be maintaining of the ponds, the community garden down, and even just the general restoration of the fauna and flora down there. So I ask for my colleague's support in approving this resolution so that Kohanaiki `Ohana can continue to do good work with this maintenance fund. Mahalo. CHR KANEALI`I-KLEINFELDER: Mahalo, Mr. Inaba. Anyone else? Ms. David, go ahead. MS. DAVID: Yes, thank you, Chair. I just wanted to say mahalo to Kohanaiki `Ohana and former Council Member Karen Eoff for the years of work, and their establishing that relationship between the County,the developer, and the nonprofit. And that laid the groundwork for, I think, all of these continuing nonprofit maintenance funds and purchases along the way, so mahalo. I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. David. Ms. Villegas. MS. VILLEGAS: I just echo the same sentiments. And I'm really excited that our maintenance of stewardship grant funding is in the works again. I want to give a shoutout to Finance and Department of Parks and Recreation for navigating that transition and providing these resources. Mahalo. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Villegas. Looking to Hilo, I'm not seeing any lights. Okay, I just want to say that Kohanaiki, as an area, is absolutely beautiful, and that this stewardship kind of agreement is just an amazing glance at what we can do in the County when we put our heads to it. And a lot of Page 34 FC-39 July 19,2022 communication went into creating it. And a beautiful community area coupled with what the resort community was looking for, as well. I've been there. I've seen it, and it's just a really nice area for the community. I appreciate everyone's work going into that. I just wanted to say that. Thank you for putting this resolution in front of us today. Now we have the motion on the floor to forward Resolution 446 to Council with a favorable recommendation. Council Members, all in favor? Vote on Res. 446-22: The motion to recommend adoption of Res. 446-22 (Approved) was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Richards — 1. Excused: None. Statements The Chair called Kai McGuire, who registered to comment on Res. 447-22, from the Public and came forward when called by the Chair. on Res, 446-22: Res. 447-22: AWARDS A PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION MAINTENANCE FUND STEWARDSHIP GRANT TO NA MAMO O KAWA Approves a grant of$123,500 to Na Mamo O Kawa, a 501(c)(3)nonprofit organization, to protect,preserve, and restore the Kawa Bay properties in Ka`u, pursuant to Section 10-16(h) of the Hawaii County Charter. Reference: Comm. 854 Intr. by: Ms. David Motion to Approve: Ms. David moved to recommend adoption of Res. 447-22. Seconded by Mr. Inaba. CHR KANEALI`I-KLEINFELDER: Ms. David, go ahead. MS. DAVID: Thank you very much. And I really want to thank Kai McGuire and the `ohana at Na Mamo O Kawa because they have been doing such a wonderful job, and your dedication and commitment are wonderful and benefit the community so much. And I really want to just thank you folks for all that you folks do in keeping this beautiful place preserved, And I yield. Page 35 FC-39 July 19,2022 CHR KANEALI`I-KLEINFELDER: Mahalo, Ms. David. Any other comments from the Council? Okay, seeing none. Mahalo for the testimony today. Very much appreciate it. And I'm looking forward to seeing what you folks continue to do with this beautiful area. Mahalo. We have the motion on the floor to forward Resolution 447-22 to Council with a favorable recommendation, all in favor? Vote on Res. 447-22: The motion to recommend adoption of Res. 447-22 (Approved) was carried by the following voice vote: Ayes: Committee Members David, Inaba, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Chung and Richards —2. Excused: None. Res. 448-22: AWARDS A PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION MAINTENANCE FUND STEWARDSHIP GRANT TO HO`OMALU KA`U Approves a grant of$18,150 to Ho`omalu Ka`u, a 501(c)(3)nonprofit organization, to protect,preserve, and restore the Kahua `Olohu Kaunamano property in Ka`u,pursuant to Section 10-16(h) of the Hawaii County Charter. Reference: Comm. 855 Intr. by: Ms. David Motion to Approve: Ms. David moved to recommend adoption of Res. 448-22. Seconded by Mr. Inaba. CHR KANEALI`I-KLEINFELDER: Council Members, discussion? Ms. David. MS. DAVID: Thank you. I just would like to thank Keoni Fox for his continued work and getting the Ho`omalu nonprofit; and I also want to thank Hamana Ventura, who has been such a soldier in keeping all of these properties, and in contact with all our nonprofits, and helping them whenever they need help. So mahalo, Hamana. And I ask for your support. I yield. CHR KANEALI`I-KLEINFELDER: Any other discussion? Okay, seeing none. Yeah, I'd like to second that. Mahalo, Mr. Ventura, for being here today and sitting with us and helping us get all this done. Very much appreciated. Okay, no further discussion, Council? The motion is on the floor, all in favor? Page 36 FC-39 July 19,2022 Vote on Res. 448-22: The motion to recommend adoption of Res. 448-22 (Approved) was carried by the following voice vote: Ayes: Committee Members David, Inaba, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Chung and Richards —2. Excused: None. Statements from The following individuals registered to comment on Res. 449-22. the Public and came forward when called by the Chair. on Res. 449-22: Alan Rolph. Rose Schilt. Res. 449-22: AWARDS A PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION MAINTENANCE FUND STEWARDSHIP GRANT TO FRIENDS OF AMY B. H. GREENWELL ETHNOBOTANICAL GARDEN Approves a grant of$191,609 to Friends of Amy B. H. Greenwell Ethnobotanical Garden, a 501(c)(3)nonprofit organization, to protect, preserve, and restore the Amy B. H. Greenwell Garden properties in South Kona, pursuant to Section 10-16(h) of the Hawaii County Charter. Reference: Comm. 856 Intr. by: Ms. David Motion to Approve: Ms. David moved to recommend adoption of Res. 449-22. Seconded by Ms. Lee Loy. CHR KANEALI`I-KLEINFELDER: Ms. David, would you lead the discussion, please? MS. DAVID: Yes, thank you. Very quickly. In addition to thanking Alan Rolph and Rose Schilt, I really want to express to mahalo to Maile Melrose. She and I have gone back and forth, and supported this initiative for years. I just want to thank her and bless her, and wish her well. Also, when you thank me for bringing forward this resolution, that is such a simple task for me, and the real reward and thanks got to go to Parks and Recreation, Hamana folks, and the Gardens, because the people at the Gardens that maintain our native plants and the cultural education over there is unsurpassed. And I'm so Page 37 FC-39 July 19,2022 happy, in my lifetime, that I have seen this happen. So I just ask for my colleagues' support on this one. Mahalo. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. David. Okay, seeing no further discussion. The motion is on the floor to forward Resolution 449-22 to Council with a favorable recommendation. All in favor? Vote on Res. 449-22: The motion to recommend adoption of Res. 449-22 (Approved) was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Richards — 1. Excused: None. Res. 450-22: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT IN THE GEOTHERMAL RELOCATION AND COMMUNITY BENEFITS FUND TO HIRE SECURITY FOR ISAAC KEPO`OKALANI HALE BEACH PARK Transfers $360,000 from the Geothermal Other Current Expenses account; and credits to the Geothermal Parks & Recreation Other Current Expenses account. Reference: Comm. 857 Intr. by: Ms. Kierkiewicz Motion to Approve: Ms. Kierkiewicz moved to recommend adoption of Res. 450-22. Seconded by Ms. Lee Loy. CHR KANEALI`I-KLEINFELDER: Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. There wasn't money in our County budget to support P&R (Department of Parks and Recreation) in securing 24/7 security for Isaac Kepo`okalani Hale Beach Park, so leveraging some of the Geothermal Community Benefit Fund to be able to support the community in this capacity. There is a huge need for this, so looking for everyone's support. Thank you. CHR KANEALI`I-KLEINFELDER: Okay. Council Member's, discussion? Okay, seeing none. Mahalo for bringing this forward. I agree, and this is well-needed and well-used funding for the community. With that, we have the motion on the floor, all in favor? Page 38 FC-39 July 19,2022 Vote on Res. 450-22: The motion to recommend adoption of Res. 450-22 (Approved) was carried by the following voice vote: Ayes: Committee Members David, Inaba, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Chung and Richards —2. Excused: None. Res. 459-22: AUTHORIZES THE OFFICE OF THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE STATE OF HAWAII DEPARTMENT OF TRANSPORTATION Allows for the receipt of$1,879,773 in federally-derived funds, which would be used by the Mass Transit Agency for operational costs resulting from the COVID-19 pandemic and lost passenger fares through December 31, 2025. Reference: Comm. 869 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Mr. Inaba moved to recommend adoption of Res. 459-22. Seconded by Ms. Lee Loy. CHR KANEALI`I-KLEINFELDER: Council Members, discussion? We do have Mr. Andoh here. Mr. Andoh, you want to come up, and just give a real brief summary of what we're looking at today? Thank you for being here and being patient. (Note: At this time, Mass Transit Agency Administrator John Andoh came forward to address the members of the Committee.) MR. ANDOH: Good morning, Council Members and Mr. Chair. John Andoh, Mass Transit Administrator. This is $1.8 million in American Rescue Plan Funds that have been allocated to the Mass Transit Agency to pay for transit operations. And we're requesting approval from the Council so that we can utilize these funds to cover our operational costs and loss of passenger fares through December 31, 2025. Happy to answer any questions if there are any. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Andoh. Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you. Aloha, Administrator Andoh. Great to see you. So help me just wrap my head around this because it's $2 million to support operational costs for MTA (Mass Transit Agency). Page 39 FC-39 July 19,2022 MR. ANDOH: Correct. MS. KIERKIEWICZ: Okay. So do you have sufficient staffing to carry out some of the planning and replacement of equipment that's noted here in the resolution, or will some of these monies be used to increase staffing within MTA to carry out the mandates here? MR. ANDOH: The Council did authorize us to add nine additional positions to the agency, which I'm starting the process to fill. MS. KIERKIEWICZ: Okay. MR. ANDOH: We're actually using another funding source to cover some of those additional positions added to the agency. This will solely pay for operational costs that we paid our fixed-route provider, Roberts Hawaii, and just cover the loss fares that we have not been generating. This funding source has no local match. MS. KIERKIEWICZ: Okay, got it. That's great to hear. Can you elaborate on some of the State/national training and the technical assistance that your agency will be receiving with these funds? MR. ANDOH: Well,particularly with these funds, since it's American Rescue Plan, we won't be getting any training funds per se; however, we will be receiving Federal Transit Administration Section 53-11 funds, which I'll be coming before Council in another action, which will allow us to pay for the additional positions, operational costs, and training programs for administrative staff as well as our mechanics; like for instance, engine training, Title VI training, ADA (American with Disabilities Act) compliance training, things to ensure that we are aware and competent with Federal Transit Administration rules and requirements. MS. KIERKIEWICZ: Okay. And as we move to the electrification of our Mass Transit systems, will some of that training be covered under this? MR. ANDOH: Actually that will be covered under an FTA (Federal Transit Administration) Section 5339 grant that has already been executed, and we're in the process of working with our partner counties in releasing a Request for Proposals (RFP) for the purchase of those buses. And there's a large-scale workforce training development element as part of that RFP from the manufacturers. MS. KIERKIEWICZ: Okay. I'm assuming, you know, should we move this forward, which I know we will, $2 million sounds like a lot, but everything that you have here: the planning, the operations, the replacement and purchase of buses, construction of facilities. That's a lot, and $2 million just kind of gets us Page 40 FC-39 July 19,2022 some incremental progress on a lot of these fronts. Are you going to be coming up with the spend-down plan so that we can be using this money in the most effective and impactful way? MR. ANDOH: Yeah, I'll be happy to work with Ms. Lee Loy, to give an update at the Public Works and Mass Transit Committee on our current grants that we have in place already, as well as grants that we've applied for. And that's basically our plan on how we're spending down all those funds, for operational training, administrative, and capital needs. MS. KIERKIEWICZ: Okay,perfect. Ms. Lee Loy, would love for you to have a conversation in your committee about how we are leveraging all these federal funds that are coming in to support MTA, and the progress that's being made on the ground. We know that you're leading a lot of really great and innovative work, Administrator Andoh, so mahalo nui for that. Chair, I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kierkiewicz. Further discussion? Okay, seeing none. Oh, no I have one question for you, Mr. Andoh. We're not charging fares for bus service right now, but this is for reimbursement of bus fares through 2025? MR. ANDOH: Yeah, so you may recall when I came before the Council, we asked for through 2023, this is the second grant that I'm just requesting to extend that through 2025. CHR KANEALI`I-KLEINFELDER: Okay. Okay, thank you. Yeah, that's all I had. Thank you, Mr. Andoh. Thank you for being patient. Yeah, well done. Okay, seeing no further discussion. We have a motion on the floor to forward Resolution 459-22 to the Council with a favorable recommendation. All in favor, Council Members? Vote on Res. 459-22: The motion to recommend adoption of Res. 459-22 (Approved) was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Kimball and Richards —2. Excused: None. MR. HENRICKS: Thank you, Mr. Chair. On to Bill for Ordinances. Page 41 FC-39 July 19,2022 BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Statements from The Chair called Everett Ohta, Interim General Counsel for the Office of the Public of Hawaiian Affairs, who registered to comment on Bill 186, and came forward on Bill 186: when called by the Chair. Bill 186: AMENDS CHAPTER 19, ARTICLE 10, SECTION 19-89.5 OF THE HAWAII COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO REAL PROPERTY TAX EXEMPTIONS FOR KULEANA LANDS Expands and clarifies eligibility for the Kuleana Land exemption and the verification process required to maintain Kuleana Land status when property ownership is transferred to a family member. Reference: Comm. 858 Intr. by: Ms. David Motion to Approve: Ms. David moved to recommend passage of Bill 186 on first reading. Seconded by Ms. Lee Loy. (Note: At this time, Everett Ohta, Interim General Council for Office of Hawaiian Affairs for OHA; and Lucy Meyers, Genealogy Specialist, came forward to address the members of the Committee.) CHR KANEALI`I-KLEINFELDER: Ms. David, go ahead. MS. DAVID: Thank you very much. And I won't be long because this is very simple, yet it took months to develop and with the assistance of Real Property Tax Administrator, and Mr. Ohta, and Ms. Meyer (Lucy) at OHA (Office of Hawaiian Affairs. And basically, Council Members, we already have a kuleana exemption on our books, what we have experienced I think from—since we adopted—or made that law, is that once an application was granted and the kuleana basically applied, having satisfied the genealogy and lineal decendence by OHA, once that person died, then because this bill was silent, as to family members, direct lineal descendants of the person that passed who have the exemption, how they could go about proving their decendency to the person that had the exemption, they had to go through the whole genealogy process again. And for me, knowing how time-consuming and specialized a family's genealogy is once that person is no longer here, it's really hard to go and do research and prove that. So this bill was meant only to address kuleana tax exemptions that were already approved and granted; and when that person passes there's a method, not an entire genealogy research again, but the family members can come before OHA Page 42 FC-39 July 19,2022 or the Real Property Tax Division and bring some government—the required government identification and documents, and then may be able to continue that exemption. So for me you know, there were a lot of kuleana lands on this island, and I think right now, talking to Ms. Meyer, they're currently processing only 11 kuleana applications. And to me, whatever we can do to keep these Hawaiian lands in Hawaiian hands, I think we need to do that, as far as getting them to afford to keep their property. Because I swear, in my experience, I think 75 percent, from the 50's and 60's, of kuleana owners along Alii Drive and in the rural areas of South Kona, has been lost because of surrounding development that made the property taxes so high that our people could not afford to pay them. So they were forced to sell, or their properties were taken. So very simple. We have a description in the bill. If you look, the revisions, basically in subsection (b), adds that"An applicant who seeks the kuleana land exemption who is a family member of the person(s) who received the original title to the kuleana land where such original title holder was previously granted a kuleana exemption . . ." So that makes it clear that this extends to applications that have previously been verified. Then on subsection (c), section (3),just describes the documentation that they need to present; and then adding the definition of family members, would mean a person who is related by blood or legal adoption to the person that receives the exemption, and is a child; a descendant of a child; sibling; or a descendant of a sibling. It also makes clear that someone who is considered to be hanai, a corporation, a limited liability company, a partnership, or other businesses entity is not considered as family members, for the purposes of this section. And this pretty much keeps the lineal decendancy and title in the hands of the families that initially received this valuable and special lands. Before I yield, I wanted to—to get to this point, I just wanted to thank Lucy, over there in OHA, and Everett for all the time that they spent working on this. Lisa, I don't knowI'd like you to come up. You were such a helpful hand in this because you're the person, or the department, that is responsible for taking care of the exemption. So thank you, Lisa. (Note: At this time, Real Property Tax Administrator Lisa Miura came forward to address the members of the Committee.) MS. MIURA: Good morning, Real Property Tax Administrator, Lisa Miura. In regards to this kuleana land exemption, Council Member David is correct, all it is changing is the courts or OHA still do need to do what they need to qualify the property as well as the individuals who currently have ownership. All Real Property Tax is doing is going to be able to maintain the kuleana exemption, going Page 43 FC-39 July 19,2022 forward when that owner passes away. And lately, we've been seeing it's been taking the courts and the family members a considerable amount of time and money sometimes to go through the process. So this just ensures that the kuleana land exemption continues to go on. MS. DAVID: Thank you, Ms. Miura. And the last person and certainly the most important one to meet and to thank in this whole process is Leslie Chow in our Legislative Research Branch. We've worked on this over a year, and only because there were certain things—when we thought we had it, we didn't. Because there were certain things that needed to be clarified and made very clear that this is only this should only be applying to lineal descendants. And so based on that, I'll be open to questions. And I ask for my colleagues' support on this one. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. David. Council Members, discussion on Bill 186? Okay, that may make it simple. I do have a couple of questions, Ms. David. I'm actually going to go to the folks who are joining us on Zoom today. Thank you for getting this in front of the Council, and for helping Ms. David put together the amendments. She recognized your help so far. And I like this a lot. I'll be supporting this today. Did you want to add anything else to this bill? I mean, could it go further? Is it satisfactory in your eyes? MR. OHTA: Yes. Thank you, Chair. This bill, again, reflects our consultation with Council Member David and her staff. We don't have anything further to add. CHR KANEALI`I-KLEINFELDER: Okay, wonderful. That's what I wanted to hear. Ms. David, I appreciate you bringing this forward and for clarifying this kuleana exemption issue. And this just barely begins to touch on what was lost over the last 200 years and begins to make amends. So mahalo for bringing this forward. I'll be supporting this today. MS. DAVID: Can I say one more thing? CHR KANEALI`I-KLEINFELDER: Ms. David, go ahead. MS. DAVID: I'm sorry. Because the screen is blocking her, but I would be remiss if I didn't say thank you to Corporation Counsel Elizabeth Strance for also helping us through this whole process. Ms. Strance, thank you so much for your legal mind and for pointing us in the right direction, as well. Thank you very much. I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. David. And I wanted to thank Ms. Miura too, for being here and for being patient. Thank you. Okay, any further discussion, Council Members? Seeing none. We have a motion on the Page 44 FC-39 July 19,2022 floor to forward Bill 186 to Council with a favorable recommendation. All in favor? Vote on Bill 186: The motion to recommend passage of Bill 186 on (Approved) first reading was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Kimball — 1. Excused: None. Bill 188: AMENDS ORDINANCE NO. 22-63, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2023 Appropriates revenues in the Federal Grants —Section 5311 Grant(American Rescue Plan Act) account($1,879,773); and appropriates the same to the Section 5311 Grant(American Rescue Plan Act) account. Funds would be used by the Mass Transit Agency for operational costs resulting from the COVID-19 pandemic and lost passenger fares through December 31, 2025. Reference: Comm. 869 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Mr. Inaba moved to recommend passage of Bill 188 on first reading. Seconded by Ms. David. CHR KANEALI`I-KLEINFELDER: Council Members, discussion on the bill? Seeing none. We had a very good presentation by Mr. Andoh regarding the previous resolution, regarding the same amount. Look forward to everyone's support. With that, we have a motion on the floor. All in favor? Vote on Bill 188: The motion to recommend passage of Bill 188 on (Approved) first reading was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Kimball — 1. Excused: None. Page 45 FC-39 July 19,2022 Bill 189: AMENDS ORDINANCE NO. 22-63, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2023 Increases revenues in the Elderly Activities Division Miscellaneous Contributions account($20,000); and appropriates the same to the Elderly Activities Division Special Program Miscellaneous Contribution account, bringing the total appropriation to $25,000, due to an anticipated increase in donations. Reference: Comm. 870 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Vote on Bill 189: Mr. Inaba moved to recommend passage of Bill 189 on (Approved) first reading. Seconded by Ms. Lee Loy and was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Kimball — 1. Excused: None. Bill 190: AMENDS CHAPTER 18, ARTICLE 4, SECTION 18-90 OF THE HAWAII COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO FARES FOR PUBLIC TRANSPORTATION Extends the temporary suspension of fares for all mass transit fixed routes and paratransit services through December 31, 2025. Reference: Comm. 871 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Mr. Inaba moved to recommend passage of Bill 190 on first reading. Seconded by Ms. Villegas. CHR KANEALI`I-KLEINFELDER: Council Members, discussion? Mr. Andoh is here for questions, as well. Seeing none. Mr. Andoh, could you come up? (Note: At this time, Mass Transit Administrator John Andoh came forward to address the members of the Committee.) CHR KANEALI`I-KLEINFELDER: So I'm just looking over this bill. It's pretty straightforward. Sorry, no fares for Mass Transit until December 31, 2025, correct? MR. ANDOH: That is correct, Councilman. Page 46 FC-39 July 19,2022 CHR KANEALI`I-KLEINFELDER: Not applying to County-operated curb-to-curb van services operated by the Department of Parks and Recreation? MR. ANDOH: That is correct. CHR KANEALI`I-KLEINFELDER: Does it cover taxis, things like that? MR. ANDOH: It would not cover the taxis. We would still have passengers pay for shared-ride coupons. CHR KANEALI`I-KLEINFELDER: Okay, beautiful. I have no further questions. Anyoh, Mr. Richards, go ahead. Thank you. Thank you, Mr. Andoh. MR. RICHARDS: Yeah, thank you. Thank you, John, for being here. Just on that. You and I had talked about an extension that you would probably be putting forth. The funding for our Mass Transit coming forward with that, are we still being—qualifying for programs as we're developing and increasing our ridership? Is that how that's going to work? MR. ANDOH: That is correct. The long-term goal is to restore credibility with the riding public on the transit system, and returning people back to transit; build our ridership so that we can generate more passenger miles, which would allow us to get more federal funds allocated to the State, which would then come through the formula to us to support overall operations. MR. RICHARDS: Yep, that was the one question that constituents were asking, that if we are not charging, is this going to cost us more? And actually, the way you've got it worked out, it's not going to cost us any more. We're actually going to do better as we build our ridership. MR. ANDOH: That is correct. And this is additional funds that we wouldn't normally have received, so it's helping us cover basically what we would have collected in fares as well as our expansion with the master plan implementation. MR. RICHARDS: Okay. MR. ANDOH: And the nice thing is no local match. MR. RICHARDS: I appreciate that. Thank you. Thank you, Chair. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Richards. Any further discussion? Okay, I hope the newspaper runs a story and says, "No fares till 2025." Because I think it's great. Good job, Mr. Andoh. Appreciate you. Page 47 FC-39 July 19,2022 MR. ANDOH: Thank you, Council. CHR KANEALI`I-KLEINFELDER: Okay. With that, we have a motion on the floor. All in favor? Vote on Bill 190: The motion to recommend passage of Bill 190 on (Approved) first reading was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Kimball — 1. Excused: None. CHR KANEALI`I-KLEINFELDER: And that brings us to the end of our agenda. MR. HENRICKS: Actually you have Communication 30.32 on the table. CHR KANEALI`I-KLEINFELDER: Oh, thank you. Ms. Sako, are you in the chambers in Hilo? MR. HENRICKS: You would need to remove the communication from the table, a second, and then the vote, and then you can go back to it. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Clerk. Vote on Motion Ms. Lee Loy moved to remove Comm. 30.32. Seconded to Remove by Mr. Inaba and carried by the following voice vote: from Table: (Approved) Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Kimball — 1. Excused: None. CHR KANEALI`I-KLEINFELDER: Thank you for the motion, Ms. Lee Loy. I'm going to jump right into the discussion. I had a question, Ms. Sako, regarding the Puainako Extension charges for the guardrail project. It was over on cost estimates. Do you have any information for that? (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) Page 48 FC-39 July 19,2022 MS. SAKO: So some of you may remember, that entire section of guardrail was taken out in a traffic accident. One of the trucks wiped it out. Typically, we would go and repair that with the guardrails we have in inventory. That was an extremely large section of guardrail that was taken out. We didn't have enough guardrails. Like much of our metal products is one of the things in our supply chain issues. So all of the guardrails are on order; but in the meantime, because of safety issues, we did have to rent those white and orange barriers to prevent other people from going off the side of the road. They have actually prevented several other accidents already. So we continue to pay for those. And when all is said and done, the cost for this will be charged back to the owner of the vehicle that caused the accident. CHR KANEALI`I-KLEINFELDER: Okay. So we're going to charge the owner $640,000? MS. SAKO: Most likely, yes. CHR KANEALI`I-KLEINFELDER: Wow. And how many guardrails did they take out? MS. SAKO: I know it's a long section. I am not positive on the exact number. But when I drive by it, it's a long section. CHR KANEALI`I-KLEINFELDER: And this is aboveI mean, above Hilo, obviously. MS. SAKO: Going up Puainako, where it connects to Saddle Road. As you go up to Saddle over to Kona, you notice the orange and white barriers on the side. CHR KANEALI`I-KLEINFELDER: I have. Okay. Okay, that's that same area. MS. SAKO: Yeah, that's where it is. CHR KANEALI`I-KLEINFELDER: And what caught me was the cost, I just thought this was you know what. There's going to be a cost to fix things, but this one running at$640,000 was large. MS. SAKO: Yeah, I think it's really the cost of renting the orange and white barriers. Typically, we don't have to do that because we have enough guardrail in stock, but this was a larger project than we typically have. Page 49 FC-39 July 19,2022 CHR KANEALI`I-KLEINFELDER: Okay. You know, a question for you. Maybe this isn't for you, maybe this is a general statement. But on the Kona side, coming down Saddle Road, we have a runaway truck ramp. MS. SAKO: Yes. CHR KANEALI`I-KLEINFELDER: But on the Hilo side, I realize we don't. MS. SAKO: That's correct. CHR KANEALI`I-KLEINFELDER: So that may be an issue that the State needs to address. That's not a County road, correct? MS. SAKO: That's correct. CHR KANEALI`I-KLEINFELDER: Okay, so this could be a good moment for DOT (Department of Transportation) to understand that we need a runaway truck ramp on the Hilo side, as well. MS. SAKO: Um-hmm. CHR KANEALI`I-KLEINFELDER: Okay. Okay, good. Thank you very much. Appreciate it, Ms. Sako, and thank you for being here today. MS. SAKO: Yep. Thank you. CHR KANEALI`I-KLEINFELDER: Okay, Council Members, we have a motion on the floor. MR. CHUNG: I have a comment. CHR KANEALI`I-KLEINFELDER: Mr. Chung, go ahead. MR. CHUNG: Yeah, I just wanted to follow up on that suggestion that you had. That concern has been brought up with State Highways as well as the Public Works department, because that is something that has been raised by a number of members of the public, about why a runaway truck ramp going down towards Kona but not on the Hilo side. I just wanted to let you and the other Council Members know that it has you know, it's—we've tried to address it anyway. We don't know what's going to happen. Thank you. CHR KANEALI`I-KLEINFELDER: Interesting. I didn't know that. Okay, was HDOT (Hawai`i Department of Transportation) responsive to our request, Mr. Chung? Page 50 FC-39 July 19,2022 MR. CHUNG: I don't know, yeah. But it was transmitted to the Department of Public Works. CHR KANEALI`I-KLEINFELDER: Okay. Okay. MR. CHUNG: I spoke to the former director on this matter. CHR KANEALI`I-KLEINFELDER: Thank you. Thank you for sharing that. I didn't know that was being pursued already. I just thought of it today. You know, that's a very necessary safety precaution. MR. CHUNG: Well, I don't if it's being pursued, quite frankly. I really don't know. But it's been brought up. Yeah, thank you. CHR KANEALI`I-KLEINFELDER: That's good. Okay, thank you, sir. Appreciate it. Okay, with that, that brings us to the end of our agenda. We do have the motion on the floor to close file on Communication 30.32. All in favor? Vote on Comm. 30.32: The motion to close file on Comm. 30.32 was carried Filed the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Kimball — 1. Excused: None. CHR KANEALI`I-KLEINFELDER: May I have motion to adjourn? ADJOURN- There being no further business, at 12:28 p.m., Mr. Inaba moved to adjourn MENT: the meeting. Seconded by Ms. David and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Kimball — 1. Excused: None. Page 51