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HomeMy WebLinkAboutMIN FC 2022/08/16 2020-2022 Committee on Finance 41st Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawaii August 16, 2022 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 2:00 p.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 Mr. Aaron S. Y. Chung, Member(via videoconference from Hilo) Ms. Ashley L. Kierkiewicz, Member Ms. Maile Medeiros David, Member Mr. Holeka Goro Inaba, Member Ms. Susan L. K. Lee Loy, Member Ms. Rebecca Villegas, Member Absent& Excused: Mr. Herbert M. "Tim" Richards III, Member STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: The following individuals registered to speak and came forward when called by the Chair: Chauncey Kahulekulu Asing: Res. 494-22 (Comm. 918), comment. Annamarie Kon: Res. 477-22 (Comm. 897), comment. Dwight Vicente: Res. 477-22 (Comm. 897); Res. 494-22 (Comm. 918); Bill 197 (Comm. 914); and Comm. 921, comment. Haley Kailiehu: Res. 494-22 (Comm. 918), in support. Kodie Solis-Kalani: Res. 494-22 (Comm. 918), in support. FC-41 August 16,2022 Bronson Palupe: Res. 494-22 (Comm. 918), in support. Azahrae Frazier: Res. 494-22 (Comm. 918), in support. Change Order As directed by the Chair and with no objection from the Council Members, the of Business: business. Statements The Chair called Leana Honda, who registered to comment on Res. 494-22, from the and came forward when called by the Chair. Public on Res. 494-22: Res. 494-22: AUTHORIZES THE DIRECTOR OF FINANCE TO INVITE PROPOSALS FOR LONG-TERM LEASE BY NEGOTIATION OF APPROXIMATELY 1,000 ACRES OF COUNTY-OWNED, AGRICULTURAL-ZONED LANDS, BEING TAX MAP KEYS: 4-2-005-001 AND 4-2-005-005, KOHOLALELE, HAMAKUA, HAWAII, PURSUANT TO CHAPTER 2, ARTICLE 19, SECTIONS 2-114, 2-116, AND 2-120 OF THE HAWAII COUNTY CODE 1983 (2016 EDITION, AS AMENDED) Allows for the lease of these parcels to a nonprofit organization for the purposes of`aina stewardship, Native Hawaiian farming and gathering practices, regenerative agroforestry, and diversified agro-ecological systems. Reference: Comm. 918 Intr. by: Ms. Kimball and Comm. 918.1: From Council Member Heather L. Kimball, dated August 10, 2022, transmitting proposed amendments to Res. 494-22. Motion to Approve: Ms. Kimball moved to recommend adoption of Res. 494-22. Seconded by Mr. Inaba. CHR KANEALII-KLEINFELDER: Ms. Kimball, take us away. MS. KIMBALL: Thank you again, Chair. I'm going to move immediately to amend the resolution on the floor with the contents of Communication 918.1. Motion to Amend: Ms. Kimball moved to amend Res. 494-22 with the contents of Comm. 918.1. Seconded by Ms. Villegas. CHR KANEALII-KLEINFELDER: Council Members, discussion? MS. KIMBALL: Yes, I'll just briefly say, Chair, there were big cooks in the kitchen in putting this resolution together, and the head chef was maybe not as Page 2 FC-41 August 16,2022 attentive as she should have been; and we came out with spaghetti when we were making chili. It's close, still tasty, but it's not quite right. And so the amendment here, the decision has already been made to suggest leasing these particular lands to huiMAU(Hui Malama I ke Ala `Ulili), and so we just wanted for the sake of transparency, the recommendation of the Clerk to make that especially clear in the content of the resolution itself. So I ask for your support with amending the language in the bill. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kimball. Council Members, any other discussion on the amendment? Seeing none. We have a motion on the floor. All in favor? Vote on Motion: The motion to amend Res. 494-22 with the contents of to Amend Comm. 918.1 was carried by the following voice vote: (Approved) 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 Members Richards — 1. Excused: None. CHR KANEALI`I-KLEINFELDER: So we're back to the main motion, Resolution 494-22, as amended. Ms. Kimball. MS. KIMBALL: Thank you, Chair. At this time, I would like to welcome No`eau Peralto up to give us a brief presentation. I think we've heard a lot from the community already, but I would really love for you all to see in detail what the work is that they are doing before we discuss this further. Thank you. (Note: At this time, Hui Malama I ke Ala Ulili Executive Director No`eau Peralto came forward to address the members of the Committee.) MR. PERALTO: Aloha, Chair Kaneali`i-Kleinfelder, and Vice Chair Kimball, and members of the Hawaii County Council Finance Committee. My name is No`eau Peralto, and I was born and raised on this island in the ahupua`a of Waiakea in Hilo, to a father from Waiakea houselots and a mother from `Umikoa Village in Koholalele, Hamakua. I now reside and engage in my life's work in the homelands of my mother, many generations of kupuna before me in Hamakua in the ahupua`a of Koholalele and Pa`auilo, where I'm a co-founder and now serve as the Executive Director of Hui Malama i ke Ala `Ulili. Page 3 FC-41 August 16,2022 I am humbled and honored to have been invited to stand and sit before you all today to express my support for Resolution 494-22 and to share some of the stories of the place that I call home, the hui of people that I'm privileged to work with every day, and the work that we engage in together to cultivate abundance on our `aina and in our community. If I can pull up our presentation at this time? MS. KIMBALL: Chair, if I may? I'll just make some comments at this point while we're waiting for the feed to go live. CHR KANEALI`I-KLEINFELDER: Go ahead, Ms. Kimball. MS. KIMBALL: You know, I think that a lot of our testifiers have already said quite a bit about this project, and I'm just kind of a pass-through conduit here. A lot of the legislation that I write comes from up here, and this is one that came from here. And I get chicken skin when I think about what this project is. What we talked about is a body, about things we want to support and things that we want to see for the future: regenerative, agriculture, feeding ourselves, taking care of our community. Multiple generations working together to take care of the `aina. This is all happening here, and it's happening at ahapua'a scale. I don't think there's going to be many opportunities on our island to have this happen, and so I think that this is really just a beautiful opportunity for us to support a wonderful program which I hope you can hear about now. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kimball. Any other Council Members want to speak? MS. KIMBALL: I'll yield at this point, until we get that feed working. CHR KANEALI`I-KLEINFELDER: Thank you. Thank you for your patience. Mr. Inaba. MR. INABA: Yeah, while we're waiting I would like to state for the record that I do have personal relationships with four of the employees here, at huiMAU; and professional negotiations, they're going to be one of the HSAC (Hawai`i State Association of Counties) field trip locations. I want to put that out for the record. I don't believe it will hinder my ability to make a good decision on this resolution. Thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. We're going to go to a brief recess while we wait for the audio-visual component to work itself out. We're in recess. Recess: At 2:35 p.m., the Chair called for a short recess. Page 4 FC-41 August 16,2022 Reconvene: The meeting reconvened at 2:41 p.m. CHR KANEALI`I-KLEINFELDER: Calling this meeting back, out of recess. Ms. Kimball, do you want to go ahead and get us started? And we have our presentation ready, it looks like? MS. KIMBALL: Yes. Go ahead, take it away. Thank you. MR. PERALTO: Mahalo nui. (Note: At this time, Mr. Peralto provided a PowerPoint presentation to the members of the Committee. For viewing of the subject presentation, please see the DVD copy of the meeting proceedings on file in the Clerk's Office, or the video archives online from the County's homepage at www.hawaiicounty.gov. A hard copy of the presentation is made a part of the record, see Comm. 918.3.) MR. PERALTO: With your support of this resolution, this intergenerational vision of a thriving ahupua`a community for Koholalele and a thriving island community for Hawaii will become a reality. Mahalo nui. MS. KIMBALL: Thank you so much. I don't really think there's anything more I can say. So I'll yield, Chair, to my colleagues. Thanks. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kimball. Thank you for your presentation. Council Members? Ms. Villegas. MS. VILLEGAS: I just want to take a moment to say a quick mahalo, No`eau, for the time you spent with me on the phone. I'm very excited to have your organization join us as a speaker at the upcoming Hawaii State Association of Counties annual conference. Wow, talk about bringing something to fruition, and right timing. And to see all these young faces of people willing to do the work, it's one thing to sit behind a computer and it's another thing to have your hands in the earth, and to cultivate life and to bring that to fruition. And as evidenced in all of your faces and the work that you do, our gratitude runs deep and strong. So I mahalo you for this and for stepping up into this kuleana. I'm fully supporting this wholeheartedly, 100 percent. And I hope that this can become a template for other organizations and future projects. So, mahalo nui. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Villegas. Ms. David. MS. DAVID: Thank you, Chair Kaneali`i-Kleinfelder. Aloha and welcome. I just have so much aloha for you folks. Because what you folks have testified actually Page 5 FC-41 August 16,2022 reminds me, many, many, many moons ago when I was a child growing up, living off the land, and I know exactly what you folks are talking about. We moved out of that because of things that were out of our control at that time, and for me listening to you folks and what you folks have done and where you folks are taking this, it's not a new idea. It is something that has always lived in every one of our kanaka maoli families, but you have brought it back to life. And for me, I thinkI am so grateful that in my lifetime I saw it happen. So for you folks, I can never say how much I appreciate what you folks are doing for our people, our kanaka maoli. You are bringing, not bringing back, you are doing what we lost. Not completely, but I watched it full circle, and that's what I appreciate. And I have to tell you folks, seeing it come full circle is like a dream come true, and what you folks are doing here will be the template of what I hope to see this island become, where we don't need to depend on anyone. We're hungry; we go out in the backyard and feed ourselves. So, I just have so much aloha for you folks. I really want to thank you folks, and thank Ms. Kimball for bringing this forward. I have no doubt that although we have in our planning laws with the County, we have what we implanted as the ahupua`a concept in our planning. But you folks are actually doing it. You folks are actually bringing that law that we have on the books, you're bringing it to life. And so you folks should be very proud of yourselves for doing that, and setting the example. So, that's all I have to say. I just really thank you folks for what you guys are doing. And I really want to go on that field trip, but I can't because I have to be on another field trip at the same time. But I will ask Mr. Inaba to take me on a field trip to visit your ahupua`a. So mahalo, I yield. Thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. David. Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you. Thank you for your presentation. Thank you for being here today. You know, to have Council Chair David get a little choked up is always a very special day. But I wanted to share a little story because we are an island of storytellers. And what my colleagues may not know, I actually met this group back in 2016. Then Alapaki Nahale-a was over at Kamehameha Schools, Kumu Leana Honda was over at Laupahoehoe Schools, and I got to meet this wonderful group and their vision for this place. But what was most inspiring was the idea of"We're going to do it." And I actually walked back to a journal that I keep, and at our meeting wrote down some notes, "This place is special and will inspire to perpetuate and endure the Page 6 FC-41 August 16,2022 love and affection for the land, natural environment, and cultural resources." They get it. They absolutely get it. And to have pinned that back in 2016 when we met, along with then it was our Planning Director Michael Yee; so to see this project come forward the way it did, knowing those seeds were planted when I was a freshman on the Council with the then Planning Director Michael Yee, the leader of Kamehameha Schools at that time and have the partnerships with our charter schools; is just as Ms. David, a welcome homecoming. And so with that, it is very easy to support this resolution going forward. And I look forward to the partnership and the cultural intelligence that you guys bring back. Thank you. I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Lee Loy. Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. So moved and inspired right now. I actually know No`eau from school, St. Jo (Saint Joseph), many, many moons ago. And I'm really actually excited to be in the presence of Haley. I've been—I've had a woman crush on you for a long time. I just love everything that you do and you stand for. I've been following all of the work that you've been doing in community, so mahalo nui. I appreciate all of the `6pio here that testified. So articulate and so passionate purpose driven. That's really incredible. I think everything I've heard, the presentation, it just gives me a lot of hope about what's possible, what you folks are doing. And as Chair David said, "A model for other community organizations around the island." So thank you for that. I appreciate all of the activations, and how you are empowering keiki; you're supporting the community, keeping your ear to the ground, and making sure that your programs really connect to solving the challenges that your community is facing; increasing resilience; catalyzing economy. I mean, the second largest employer in Pa`auilo, that's a big deal. And centering focus of that, you're caring for lands that nurtures and sustains us. So, I'll be supporting this. And really, can't wait to see what you folks do in the upcoming years. Mahalo nui, Chair. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kierkiewicz. Mr. Inaba. MR. INABA: Mahalo, Mr. Kaneali`i-Kleinfelder. You know, I've been out there on a couple of occasions, taking actually students from West Hawaii to Koholalele and working alongside some other folks here today in chambers. It's just, you know, one of the opportunities that we hardly get as a Council, to make a decision that will impact future generations, especially when it comes to sustainability. So really excited to support this. And mahalo, you folks, for all the work that you folks do on the `aina, and for being willing to share that with some leaders next month when they're here on our mokupuni and on our `aina. Page 7 FC-41 August 16,2022 Perhaps I just have one question for Finance, do we know how long we're looking at the lease yet, or is that part of negotiations? Okay. MR. PERALTO: Approximately 75. MR. INABA: Approximately 75 years. Okay, thank you so much. Chair, I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. Okay, circling to Hilo. I don't see Mr. Chung. But if you are there, do you have anything you want to add? MR. BROWN: Mr. Chung is no longer here. I think he had to leave. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Brown. I appreciate it. Okay, I think that comes to me then. Mahalo, Ms. Kimball, for bringing this forward. Mahalo for being here today. It's impressive to see so many people show up, especially for one thing so important like this. We've talked about sustainability; we've talked about resilience. Sometimes it becomes just keywords that I feel are thrown around. Today this really changes the game in my eyes. Not too long ago I visited the Kohala Center, a demonstration farm in Hamakua, and with Ka`iana(Runnels), and we were able to—my family and I, and our extended `ohana, we were able to huki kalo, and then plant the hulls and then take hulls home and grow on our own properties, some of the kupuna varieties. And I saw a beautiful farm, I saw a community, I saw rich soil,just an amazing experience. And I thought to myself, wow, this really has potential. So this, today in front of us, I just see that as a multiplication of that same effort, and it has the potential to be absolutely beautiful. So, you have my full support. I think from today,you can see you have the support from the whole island. So keep it up, good job. Mahalo. With that, we have a motion on the floor to forward Resolution 494-22, as amended, to Council with a favorable recommendation. All in favor? Vote on Res. 494-22: The motion to recommend adoption of Res. 494-22, Draft 2 as amended to Draft 2, was carried by the following (Approved) roll call 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. Page 8 FC-41 August 16,2022 CHR KANEALI`I-KLEINFELDER: Mahalo for your time. Thank you. Thank you, thank you, thank you. Ms. Kimball, did you want to do a brief recess, or you ? MS. KIMBALL: Yeah, that would be great, Chair. Thank you. CHR KANEALI`I-KLEINFELDER: Okay, we're in recess. Recess: At 3:06 p.m., the Chair called for a short recess. Reconvene: The meeting reconvened at 3:11 p.m. CHR KANEALI`I-KLEINFELDER: Aloha, I'm bringing this meeting out of order, well, back to order. Either one will do. Okay, Mr. Clerk, let's go to Resolution 467, please. Res. 467-22: REQUESTS THE OFFICE OF THE COUNTY AUDITOR TO CONDUCT A PERFORMANCE AUDIT OF THE OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT TO ENSURE THAT THE AGENCY HAS ADEQUATE FUNDAMENTAL AND STRATEGIC PLANS TO GUARANTEE THE LAWFUL AND EFFICIENT ISSUANCE AND UTILIZATION OF AFFORDABLE HOUSING CREDITS The audit would include an annual comprehensive list of affordable housing credits outstanding, issued, transferred, and redeemed. Reference: Comm. 886 Intr. by: Mr. Inaba Postponed: August 2, 2022 (Note: There is a motion by Mr. Inaba, seconded by Ms. Lee Loy, to recommend adoption of Res. 467-22.) ; and Comm. 886.2: From Council Member Holeka Goro Inaba, dated August 9, 2022, transmitting proposed amendments to Res. 467-22. (Note: Comm. 886.2, from Council Member Holeka Goro Inaba dated August 9, 2022, transmitting proposed amendments to Res. 467-22, was circulated.) CHR KANEALI`I-KLEINFELDER: So we do have a motion on the floor already. Mr. Inaba, I'm going to hand the meeting over to you, to go ahead and start us off. Thank you. Page 9 FC-41 August 16,2022 MR. INABA: Thank you. And based on our conversation at the last committee hearing, and with the meeting with our County Auditor Tyler Benner, who I believe is in our Hilo Chambers, I prepared an amendment to the resolution. So at this time, I'd like to make a motion to amend Resolution 467-22 with the contents of Communication 886.2. Motion to Amend: Mr. Inaba moved to amend Res. 467-22 with the contents of Comm. 886.2. Seconded by Ms. Lee Loy. CHR KANEALI`I-KLEINFELDER: Council Members, discussion? Mr. Inaba. MR. INABA: Yes,just walking us through what this amendment does. So there was some concern with a federal investigation going on right now; making sure that the Auditor and his staff can conduct their kuleana while not getting themselves or the County into trouble. So I've worked—and I want to actually thank the Auditor, Mr. Benner, for proposing these amendments ahead of time; so by the time I had the meeting with him, it was clear on what could work for his office and what couldn't. So as you'll see within this communication, we've boiled it down away from, "adequate fundamental and strategic plans,"but just to make sure that our issuing and utilization of affordable housing credits are being carried out properly. Also. taking out some of the sections that he felt—some of the Whereas clauses that you felt may have been unnecessary or have put us into an awkward position with the current investigation going on, and replacing them with more appropriate references to our Hawaii County Code within Chapter 11. So, I ask for your support. Mr. Benner, if you have anything, would you be so kind as to share any other thoughts you might have right now? (Note: At this time, County Auditor Tyler Benner came forward to address the members of the Committee.) MR. BENNER: Yeah. Good afternoon, Council. My name is Tyler Benner, County Auditor. I don't have a lot for you today. I thank you for the discussion surrounding Resolution 467-22. We had a robust conversation at the last Finance Committee meeting. I wanted to thank this Council for the thoughtful discussion and brief pause, and Council Member Inaba and his staff in particular, for understanding that new developments after we initially spoke necessitated some revisions. I'm more comfortable with the resolution that we're looking at today. Council Member Inaba fully addressed the concerns with this revision. And while we continue to remain diligent with regards to the legal environment, at this time we are comfortable beginning an initial survey work. So with that, I would just await this body's discussion and decision. Page 10 FC-41 August 16,2022 MR. INABA: Thank you, Mr. Benner. I guess I'm open to any questions that this committee might have. But again, one of the conversations the auditor and I had was making sure that anything that's a part of the current investigation is hands-off. So they'll be identified as within this work; that he didn't touch it because it's part of the investigation. But at least we'll know anything else within the scope of this resolution, and ensure that these credits that are outstanding are legitimate, and that we have the proper resources and plans to ensure accounting of these credits. So, mahalo. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. Council Members, any discussion on the amendment? Ms. Kimball. MS. KIMBALL: I just want to mahalo my colleague for being accepting of the comments and feedback from the rest of the body, and working with the Auditor to improve the language and meet everybody's needs, so thank you for doing that. And I'm happy to support the amendment. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kimball. Ms. David. MS. DAVID: Yes, thank you, Chair. And thank you, Council Member Inaba, for actually bringing forth theI looked at your amendment, and basically in my mind satisfies our role in keeping what's under another agency's investigation out of our—out of this resolution. I just have a question for Administrator Kunz, because seeing what was done by Council Member Inaba, and knowing that I think this isI really support it. I just wanted to know your position and your comments. (Note: At this time, Housing and Community Development Administrator Susan Kunz came forward to address the members of the Committee.) MS. KUNZ: Good afternoon. Susan Kunz, Housing Administrator for the Office of Housing. Thank you for the opportunity to comment. I did also have a chance to take a look at this communication, and I am very comfortable with the amendments that have been made. I touched bases with the County Auditor, and I am really looking forward to the opportunity to work with him. You know, I do want you to know that through this process the Office of Housing has already begun work obviously, right, to fortify and to relook at the internal policies of how we administer Chapter 11. So this opportunity to work with the County Auditor will definitely, I think, bring some confidence back right into the process, so I'm really looking forward to this. Thank you. MS. DAVID: Thank you, Administrator, and it makes me happy. I think I've got all the information that I need to make an informed decision today, and thank you. Page 11 FC-41 August 16,2022 MS. KUNZ: Thank you. MS. DAVID: I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. David. Okay, seeing no other discussion on the amendment. We have the motion on the floor to amend Resolution 467-22 with the contents of Communication 886.2. All in favor? Vote on Motion The motion to amend Res. 467-22 with the contents of to Amend: Comm. 886.2 was carried by the following voice vote: (Approved) 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. CHR KANEALI`I-KLEINFELDER: Brings us back to the main motion, Resolution 467-222, as amended. Mr. Inaba, no discussion? No. Council Members, discussion? Okay, seeing none. I will make a comment. I do appreciate Mr. Inaba working with Mr. Benner and the Administration in different forms and functions, to come back with a product that does meet everyone's needs. And Mr. Benner,just as a note, your comments and your email, I didn't quite not your email, but your note back to the Council as far as your comfortableness with what was in front of you, I did find an incredibly thoughtful, and efficient, and succinct, so I think that really speaks to you and your office as far as what you do for our County. So mahalo for your time and for being here today. MR. BENNER: Thank you very much. I appreciate that. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Benner. Okay with that, we have the motion on the floor to forward Resolution 467-22, as amended, to Council with a favorable recommendation. All in favor? Page 12 FC-41 August 16,2022 Vote on Res. 467-22: The motion to recommend adoption of Res. 467-22, Draft 2 as amended to Draft 2, was carried by the following (Approved) roll call 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 CHR KANEALI`I-KLEINFELDER: Let's go to the top of the agenda, Communication 30.34. Return to Order The Chair directed the Committee to return to the order of business. of Business: COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 30.34: REPORT OF FUND TRANSFERS AUTHORIZED: JUNE 16—30 AND JULY 1 — 15, 2022 From Controller Kay Oshiro, dated July 26, 2022. Vote on Comm. 30.34: Ms. Lee Loy moved to close file on Comm. 30.34. Filed Seconded by Ms. David and carried by the following voice vote: Ayes: Committee Members David, Inaba, Kierkiewicz, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—6. Noes: None. Absent: Committee Members Chung, Kimball, and Richards —3. Excused: None. CHR KANEALI`I-KLEINFELDER: Communication 31.42, please. Comm. 31.41: REPORT OF CHANGE ORDERS AUTHORIZED: JULY 1 — 15, 2022 From Finance Director Deanna Sako, dated July 18, 2022, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Page 13 FC-41 August 16,2022 Vote on Comm. 31.41: Ms. Lee Loy moved to close file on Comm. 31.41. Filed Seconded by Ms. David and carried by the following voice vote: Ayes: Committee Members David, Inaba, Kierkiewicz, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—6. Noes: None. Absent: Committee Members Chung, Kimball, and Richards —3. Excused: None. Comm. 32.21: MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED FEBRUARY 28, 2022 From Finance Director Deanna Sako, dated July 22, 2022, transmitting the above report pursuant to Hawaii County Charter Section 6-6.3 (h). Vote on Comm. 32.21: Ms. Lee Loy moved to close file on Comm. 32.21. Filed Seconded by Ms. David and carried by the following voice vote: Ayes: Committee Members David, Inaba, Kierkiewicz, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—6. Noes: None. Absent: Committee Members Chung, Kimball, and Richards —3. Excused: None. Comm. 32.22: MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED MARCH 31, 2022 From Finance Director Deanna Sako, dated July 22, 2022, transmitting the above report pursuant to Hawaii County Charter Section 6-6.3 (h). Vote on Comm. 32.22: Ms. Lee Loy moved to close file on Comm. 32.22. Filed) Seconded by Ms. David and 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. Page 14 FC-41 August 16,2022 Comm. 32.23: MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED APRIL 30, 2022 From Finance Director Deanna Sako, dated July 22, 2022, transmitting the above report pursuant to Hawaii County Charter Section 6-6.3 (h). Motion to Close File: Ms. Lee Loy moved to close file on Comm. 32.23. Seconded by Ms. David. CHR KANEALI`I-KLEINFELDER: Any discussion? Hearing none. Ms. Oshiro, are you in Hilo? MR. BROWN: Yes, Kay is here, Chair. CHR KANEALI`I-KLEINFELDER: Kay, could you come up to the front, please? I have one question for you. (Note: At this time, Controller Kay Oshiro came forward to address the members of the Committee.) MS. OSHIRO: Hi, I'm Kay Oshiro, Controller for the County. CHR KANEALI`I-KLEINFELDER: Thank you for joining us today, Kay. There was this little bit of discussion earlier. This brings us up to April here, but it's August. What it would it take to bring these up to at least being almost close to the month that we're in, in your eyes? MS. OSHIRO: So at this time, we need the cooperation of all the other departments and the divisions as well as the time that my staff are devoting currently to help other departments that are short-staffed and behind in their other issues, as well. CHR KANEALI`I-KLEINFELDER: Okay, so not so much the Finance Department, but more so the other departments, that need to get the information into your office so that you guys can finalize and bring it back to us? MS. OSHIRO: Correct. Departments and divisions, yes. CHR KANEALI`I-KLEINFELDER: Okay. Are there deadlines that are set so that the paperwork gets to your office in a timely manner so that you can finish your task? MS. OSHIRO: We have deadlines, but more so for fiscal year-end, because it's the fiscal year end that's the most important. We have Fund Balance that's determined by October 15'', and we also have the ACFR (Annual Comprehensive Page 15 FC-41 August 16,2022 Financial Report), the audit, that has to be done for the external financial audit. So it's the year-end deadlines more so that we are tied by. CHR KANEALI`I-KLEINFELDER: What are the guidelines for making sure that these monthly budget summary reports, the data is to your office in time, is there anything? MS. OSHIRO: There are no internal deadlines to the departments, no. CHR KANEALI`I-KLEINFELDER: Okay. It's come up before. Just kind of reiterating things I've heard before when I was in my first term, second term, so just putting it back on the radar. And I think good for us to have an awareness of why the delay, and then make some decisions that would get these up to more of a current standing, so we can make the decisions. But I do appreciate your answers, thank you very much. Thanks for being here. I appreciate it. MS. OSHIRO: Okay, you're welcome. CHR KANEALI`I-KLEINFELDER: Okay. Thank you, Kay. Okay with that, Council Members, any more discussion? Hearing none. We have the motion on the floor, all in favor? Vote on Comm. 32.23: The motion to close file on Comm. 32.23 was carried Filed) 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. Comm. 896: TABULAR SUMMARY OF BONDED INDEBTEDNESS AS OF JUNE 30, 2022 From Finance Director Deanna S. Sako, dated July 15, 2022, transmitting the above report pursuant to Hawaii Revised Statutes Chapter 47C. Motion to Close File: Ms. Lee Loy moved to close file on Comm. 896. Seconded by Ms. David. CHR KANEALI`I-KLEINFELDER: Council Members, discussion? MR. INABA: Chair? CHR KANEALI`I-KLEINFELDER: Mr. Inaba, go ahead. Page 16 FC-41 August 16,2022 MR. INABA: Yeah, thank you. Is Deanna in Hilo Chambers? CHR KANEALI`I-KLEINFELDER: I believe, Mr. Inaba, we have Ms. Diane Nakagawa. (Note: At this time, Deputy Finance Director Diane Nakagawa and Controller Kay Oshiro came forward to address the members of the Committee.) MR. INABA: Hi, Ms. Nakagawa. Could you just give us a summary of the summary, please, and what we're looking at here? Good afternoon, thank you for joining us. MS. NAKAGAWA: Good afternoon, Council Members. Diane Nakagawa, Deputy Finance Director. I'm actually going to pass this to Controller Kay Oshiro to walk you through a summary of the report. MR. INABA: Ms. Nakagawa, can you please pull the mic a little bit closer? We're having a hard time hearing here. MS. NAKAGAWA: Oh, sorry about that. MR. INABA: Thank you. MS. NAKAGAWA: Good afternoon, Council Members. I'm going to pass this over to our Controller Kay Oshiro to provide you with a brief summary and answer any questions you may have. MS. OSHIRO: Hi, Kay Oshiro, Controller for the County. So basically this statement of Funded Indebtedness for the County summarizes all the debt that the County has outstanding as of fiscal year-end as well as the exclusions that come from that total, such as if the funding is to come from the budget in the current fiscal year as well as if it's coming from an outside source. So the improvement districts are then subtracted out, as well. So this summary is done at the end of every fiscal year and after an issuance. So if we were to issue bonds in the middle of the year, then one of these would have been done, as prepared by Treasury. And I, as a Controller, will check it, and then it goes through Corp. Counsel, and then Deanna, finally. MR. INABA: Thank you. And in looking at our net funded debt of$385 million, can we just get an idea ? I don't know that I'veI don't recall seeing this number so high before, and what is the plan to, I guess, address this debt? Page 17 FC-41 August 16,2022 MS. OSHIRO: So when you say, "the plan to address the debt,"the principal and the interest that's due within each fiscal year are added in the budget. At this time, I'm not aware, and that might be a question for Deanna. But whether or not there are any potential—more issuances that are coming up, any new bonded debt that's going to be issued as well as any refunding of old debt that I'm not aware of at this time. MR. INABA: Okay. Ms. Nakagawa, do you have any information on that at this point? MS. NAKAGAWA: Not at this moment, but we can certainly get back to you with that. MR. INABA: Okay, thank you so much. Chair, I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. Anyone else? Okay, seeing none. I just have a question for either one of you. Mr. Chung brought forward a bond in our previous term. Is that represented here, or has it not been utilized? MS. OSHIRO: Sorry, I'm unfamiliar when you said that a bond was brought forward, do you know specifically? CHR KANEALI`I-KLEINFELDER: Well the Council passed the bond in 2020? MS. OSHIRO: I believe it would have been the authorization to issue the bond. And according to the schedule prepared by the Treasury Department, the last bond issuance being reflected here was the there was one in 2020. I'm not sure. I can get back to you, and check with Treasury if there were any actual bonds issued on the 2020 bond authorization. CHR KANEALI`I-KLEINFELDER: And Ms. Lee Loy is saying that we did authorize it, but we're still waiting to, I guess, either the expenses or the expenditures, yeah. And I guess the reason I'm asking is two-fold. There's a lot of items, because Mr. Chung did kind of give us all the opportunity to input what we thought was important, what that should go towards. And in a follow-up, months later you had asked where we stood; and that's kind of why I'm asking today, is where we stand with that bond. There are a lot of projects that we could be doing with those funds, and I'd like to see some movement on that. So a little bit of a roundabout question. But I do appreciate the report today, and thank you for being here to answer our questions. MS. NAKAGAWA: Thank you, and we'll get back to you with those items. Page 18 FC-41 August 16,2022 CHR KANEALI`I-KLEINFELDER: Thank you. And anything in your eyes that the Council should be aware of, in looking over this report? MS. NAKAGAWA: I don't think that there's anything that stands out that's substantially different from prior years. CHR KANEALI`I-KLEINFELDER: Okay. Okay, I'll leave it at that. Thank you very much, ladies. I appreciate your time. Council Members, any further discussion? Okay, seeing none. The motion is on the floor to close file on Communication 896. All in favor? Vote on Comm. 896: The motion to close file on Comm. 896 was carried by the Filed) 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. CHR KANEALI`I-KLEINFELDER: That brings us to Resolution 477. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 477-22: AWARDS A PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION MAINTENANCE FUND STEWARDSHIP GRANT TO NA MAKA HALOA O WAIPI`O Approves a grant of$119,900 to Na Maka Haloa O Waipi`o, a 501(c)(3) nonprofit organization, to protect, preserve, and restore the Pohoiki property (Tax Map Key: 1-3-008-097), pursuant to Section 10-16(h) of the Hawaii County Charter. Reference: Comm. 897 Intr. by: Ms. Kierkiewicz Motion to Approve: Ms. Kierkiewicz moved to recommend adoption of Res. 477-22. Seconded by Ms. Lee Loy. CHR KANEALI`I-KLEINFELDER: Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you. I just want to mahalo nui Anake Annamarie Kon for her presence today. She is the Executive Director of Na Maka Haloa O Waipi`o, which is a nonprofit entity that is going to be taking on the kuleana of Page 19 FC-41 August 16,2022 stewardship of this PONC (Public access, Open Space, and Natural Resources Preservation Commission)parcel, which is right next door to Isaac Kepo`okalani Hale Beach Park, in the Pohoiki area. I'm really excited about all of the programming that Anake has in place to mitigate invasive species, propagate native plants, and just get more folks in touch with the area and connected to land, and also through that,just bringing great awareness of history, and culture, and sense of place. So, looking for everyone's support for this stewardship grant. Thank you. CHR KANEALI`I-KLEINFELDER: Mahalo, Ms. Kierkiewicz. Anyone else? Okay, I do appreciate you bringing this forward, and it goes in line with the meeting discussing Pohoiki this Thursday, and just in general, trying to rebuild what we lost during the eruption, so mahalo for bringing this forward. I'll be supporting this today. With that, we have the motion on the floor to forward Resolution 477-22 to Council with a favorable recommendation. All in favor? Vote on Res. 477-22: The motion to recommend adoption of Res. 477-22 (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. CHR KANEALI`I-KLEINFELDER: Resolution 491, please. Res. 491-22: AUTHORIZES THE ACCEPTANCE OF A DONATION OF UP TO EIGHT BUSES FROM THE CITY AND COUNTY OF HONOLULU DEPARTMENT OF TRANSPORTATION SERVICES Accepts up to eight 2000 and 2002 40-foot Gillig Phantom buses, with an approximate value of$1,000 each for the Mass Transit Agency's transportation fleet. Reference: Comm. 915 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 491-22. Seconded by Ms. David. CHR KANEALI`I-KLEINFELDER: Council Members, discussion? We do have John Andoh joining us today as well, via Zoom. Page 20 FC-41 August 16,2022 (Note: At this time, Mass Transit Administrator John Andoh came forward to address the members of the Committee.) MR. ANDOH: Happy Day, afternoon. CHR KANEALI`I-KLEINFELDER: Thanks for joining us today, sir. MR. ANDOH: Of course. CHR KANEALI`I-KLEINFELDER: You know, Mr. Andoh, why don't you just give us a little background on this? I'm not seeing any discussion at the moment, so go ahead when you're ready. MR. ANDOH: Okay. So we continue to procure buses based on the grant that we've received over the past few years, and we're having some challenges just going through the procurement. So in order to still keep the fleet going, we've done a review and we have identified eight buses that are just at their last leg, from previous donations, that we're asking the Council to basically get a new donation so that we can retire those eight worst ones while we await the new buses to come. One thing I do want to just add, as well as today, we were awarded additional monies to purchase six hydrogen buses with associated infrastructure as well as bus stop facilities, transit hubs, and other associated capital improvements today by the Federal Transit Administration. CHR KANEALI`I-KLEINFELDER: Wow. Well, mahalo. Good job. Congratulation, that's a big move for our County. Appreciate it, sir, thank you very much. Council Members, discussion on the resolution? Okay, seeing none. Thank you for your time, Mr. Andoh. Thank you for being present. And with that, Council Members, we have a motion on the floor. All in favor of forwarding Resolution 491-22 to the Council with a favorable recommendation? Vote on Res. 491-22: The motion to recommend adoption of Res. 491-22 (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. CHR KANEALI`I-KLEINFELDER: Please go to Bill 197. Page 21 FC-41 August 16,2022 BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Bill 197: 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 Federal Grants —Housing Choice Voucher-Housing Project account($180,000); and appropriates the same to the Housing Ulu Wini Other Current Expenses account, bringing the total appropriation to $1,355,312. Funds would be used to subsidize operating costs required to run the Ulu Wini Housing project. Reference: Comm. 914 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Vote on Bill 197: Ms. Lee Loy moved to recommend passage of Bill 197 (Approved) on first reading. Seconded by Ms. David and 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. CHR KANEALII-KLEINFELDER: That brings us to our last item on our agenda today, Communication 921. REFERRALS FOR EXECUTIVE SESSION Comm. 921: USA VS. ALAN S. RUDO, BUDHABBHATTI, SULLA AND ZAMBER; U.S. DISTRICT COURT - HAWAII From Council Member Holeka Goro Inaba, dated August 4, 2022, requesting an attorney-client confidential discussion to consult with the Council regarding the above-referenced matter. The Finance Committee anticipates convening an executive meeting regarding the above matter, pursuant to Section 92-5(a)(4), for the purpose of consulting with Council's attorney on questions and issues pertaining to the Council's powers, duties, privileges, immunities, and liabilities. A 2/3 vote pursuant to Hawaii Revised Statutes, Section 92-4, and Rule Nos. 2 and 10 of the Rules of Procedure of the County Council is necessary to hold an executive meeting. Motion to Close File: Mr. Inaba moved to close file on Comm. 921. Seconded by Ms. Lee Loy. Page 22 FC-41 August 16,2022 CHR KANEALI`I-KLEINFELDER: Mr. Inaba. MR. INABA: Yeah, as stated in the communication, I put this forward based on our last discussion in Committee. And in light of some of our responsibility having to oversee or have relationship to affordable housing credits, I did want Corporation Counsel to provide us, you know, an update as to where we are as a County and where we might be in the near future, as a result of this investigation. So, I'm asking that we go into Executive Session to get this update. Vote on Motion Ms. Lee Loy moved to enter into Executive Session in to Enter Into order to hold attorney-client privileged discussion Executive Session: regarding Comm. 921, as authorized by Section 92-5(a)(4) (Approved) of the Hawaii Revised Statutes. Seconded by Mr. Inaba and 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. Recess: At 3:40 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 4:40 p.m. CHR KANEALI`I-KLEINFELDER: Okay, we're back out of Executive Session. Council Members, is there any further discussion on Communication 921? Seeing none. Okay, we have the motion on the floor to close file on Communication 921. All in favor? Vote on Comm. 921: The motion to close file on Comm. 921 was carried by Filed 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. CHR KANEALI`I-KLEINFELDER: That does bring us to the end of our agenda. May I have a motion, please? Page 23