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HomeMy WebLinkAboutMIN FC 2022/11/01 2020-2022 Committee on Finance 46th Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii November 1, 2022 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 1:00 p.m., in the Council Chambers, Hilo, 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 Mr. Holeka Goro Inaba, Member Ms. Ashley L. Kierkiewicz, Member(came in later) Ms. Maile Medeiros David, Member Mr. Herbert M. "Tim" Richards III, Member (came in later) Ms. Rebecca Villegas, Member Absent& Excused: Ms. Susan L. K. Lee Loy, 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 in support of Comm. 1077, and came forward when called by the Chair: Alan Roth. (representing Friends of Amy Greenwell Ethnobotanical Garden) Marie Morin. (representing Friends of Amy Greenwell EthnoBotanical Garden) Karen Eoff. (representing the Kohanaiki `Ikaika `Ohana) FC-46 November 1,2022 CHR KANEALII-KLEINFELDER: Mr. Clerk, can we please go to Communication 84.7? Change Order As directed by the Chair and with no objection from the Council Members, of Business: the following items were taken out of order: Comm. 84.7: FIRST QUARTER REPORT OF PERSONS EMPLOYED UNDER A CONTRACT FOR LESS THAN 90 DAYS: JULY 1 —SEPTEMBER 30, 2022 From Human Resources Director Waylen L. K. Leopoldino, dated October 3, 202 transmitting the above report pursuant to Hawaii County Code Section 2-12.5. Vote on Comm. 84.7: Mr. Inaba moved to close file on Comm. 84.7. Filed Seconded by Ms. David and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Villegas, and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Lee Loy and Richards —2. Excused: None. CHR KANEALII-KLEINFELDER: And for our next order of business thank you, Director. For our next order of business, let's go to Bill 230, please. Bill 230: PROVIDES FOR THE ESTABLISHMENT OF THE COUNTY OF HAWAII DOWNTOWN HILO BUSINESS IMPROVEMENT DISTRICT NO. 2, AS AUTHORIZED BY CHAPTER 35 OF THE HAWAII COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO BUSINESS IMPROVEMENT DISTRICTS Establishes a Business Improvement District to finance certain infrastructure improvements and supplement public safety, sanitation, transportation, and landscaping services in the Downtown Hilo area, to be applied to 183 parcels assessed at$500 per parcel each year. Reference: Comm. 1060 Intr. by: Mr. Chung Motion to Approve: Mr. Chung moved to recommend passage of Bill 230 on first reading. Seconded by Mr. Inaba. CHR KANEALII-KLEINFELDER: Mr. Chung, go ahead. Page 2 FC-46 November 1,2022 MR. CHUNG: Yeah, thank you. First of all, Mr. Chairman, thank you very much for taking this out of order. We have Mr. Roy Takemoto, former Managing Director, here to answer any questions, if need be. I'm going to give some background on this. First of all, a similar bill was introduced about two years ago. This is almost exactly the same thing that was introduced the last time, but I was advised by our County Clerk that it might be better if we just came up with a new bill, so that's what we did. There are certain requirements of these types of bills that probably made it very yeah, made it advisable to make anew bill. But just as background—well, first of all, I received an email from Mr. Takemoto (see Comm. 1060.1), and he's a humble individual as we all know. He said he appreciates the credit that I keep on bestowing on him on this thing "but stop that already," so I'm going to stop that, okay, but I cannot do it or explain this thing without at least explaining Roy's involvement in all of this, so I hope you don't mind, Roy. So at the tail-end of his administration, I allowed Roy to come up and introduce the predecessor to this bill. Roy had done a lot of work on it. It was held in committee at my request and not pulled out during the course of these last two years. The reason for that is we were mired in, you know, COVID (Coronavirus Disease) lockdown basically, and it just—to me it wasn't the best time to surface something like this, which would have an impact financially on a lot of the businesses that were suffering at that time, but now is the time. To the credit of many other community-minded individuals, led by Nimr Tamimi, they formed a group that was willing to take on the task of doing community outreach, you know, to talk to affected landowners and businesses, and explain to them what the benefits of this type of proposal would mean to them. Really, when you think about it, this is all it was ever meant to be, a community-based effort because there were some apprehensions on the part of some public members who were fearful that this type of exaction would be shoved down their throats, and that was never, ever the intent. It was intended to be a community- based measure. You know, to the credit of Nimr and his team, and Roy, and Roy is of course part of all of that, and they did areal good job. I wasn't too sure if they were going to be ready today, and I had every intention of holding this one more time until that working group said, "Yeah, we're ready." Because what needs to be done, really, is to identify the stakeholders and all of the affected parcel owners, because a lot—you know, well, I'm thinking it has changed somewhat from the first time this surfaced. Roy just told me today that they're ready to go. I think I've stated this before, the funds that are generated by virtue of this type of arrangement is not intended to replace what the County is supposed to be doing in that area, but Page 3 FC-46 November 1,2022 more to augment and to reflect the needs of the association and the downtown people. So anyway, I think Roy is here to answer any other questions. I'm going to mention one more thing though, there are some requirements, statutory requirements that associate with these types of measures, and one is that if 50 or over 50 percent of the affected landowners, or property owners—and there are two formulas, and I'm not going to go into detail on that, but there are two formulas. If there are 50 percent objections lodged, then this thing will automatically die, and also, there is a requirement for a public hearing. The public hearing has to be done after 90 days of the introduction of this bill. When was this thing introduced anyway? Probably about a month ago. No earlier than a month after its introduction and no later than 90 days, so we have that window. We could do it while I'm still here, but I'm thinking it might be best if we let the next Council Member take care of that. But in the meantime, though, I would like to move this ahead. There might be some changes to the exhibits, particularly Exhibits A and C. I'm not exactly too sure. That's a work in progress. Roy and his team are going to have to work that thing out. But I do ask for all of your support, at least moving this through. There are safeguards against this thing being ramrodded down the throats of affected landowners. You know, we could use the—what is it called? Ms. Villegas, what's that? The Kailua Village? Business Improvement District as a model, highly successful. There was a community meeting held. Ross Wilson came. He gave his perspectives and talked about all of the benefits, and I think it was well-received by the people who were in attendance. So anyway, if you guys have any questions, you can ask Roy, you guys can ask me,but if not, I would ask all of you to please move this thing through. Thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Chung. Council Members? Mr. Inaba. MR. INABA: Just a procedural question. When we establish a zone like this, and if so happen properties within the zone subdivide, how does that work for them, and a new TMK(Tax Map Key) is established? Because right now, we are listing TMKs out. MR. CHUNG: Right. MR. INABA: I just thought of it and wondered what would happen. Page 4 FC-46 November 1,2022 MR. CHUNG: Well, I guess it would depend on when the subdivision was done. If it's done after the establishment, well than, you knowI mean, talking procedurally in terms of objections and things like that? MR. INABA: Yeah. MR. CHUNG: Yeah, and that—you know, that would be gone. MR. INABA: Okay. MR. CHUNG: But if it's done—and that's why Roy and his team, and Council staff, will have to take a close look at all of these TMKs, yeah, prior to the adoption of the measure. MR. INABA: Oh. Thank you, Mr. Chung. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. Ms. David. MS. DAVID: Thank you. Mr. Chung, thank you for introducing this. I think this is a great issue to bring forward, especially for downtown Hilo. Having worked with former Council Member Angel Pilago on the Village Improvement District in Kona, it was like Mr. Chung said, "It's a very comprehensive, but a very fair process,"where each business owner or each owner of property within that district is allowed to take part, 50 percent. In that case, we did get over 50 percent, but there were some people that of course didn't support it. However, now I think you can see the benefits for everyone, even for the ones that don't liveI mean, that did not support this initially, because Kailua Village Business Improvement District organization has really stepped out, the beautification of that village. I see good things for downtown Hilo, as well, and the process is a fair one. So thank you, Mr. Chung, for expanding that on the Hilo side. I will support this measure. Mahalo. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. David. Ms. Villegas, go ahead. MS. VILLEGAS: Yeah, I concur with the statements of Chair David. While not going back quite as far with her direct work for Angel Pilago's office, I've had the honor and privilege of working with the Kailua Village Business Improvement District and all of the different measures that they work really hard on beautification. They have aloha ambassadors that travel through a village and creating relationships, even with our houseless population there, and supporting our small businesses through some of the things they struggle with, and it kind of expanded into an opportunity to embrace other conversations as we navigate Page 5 FC-46 November 1,2022 long-term planning for the village. I think that it would highly benefit, potentially, the other most urban area on our island. So I will definitely be supporting this today, and do recommend something like the organization that helps manage what happens on the Kona side. So thank you, Roy, for your unending commitment to your community, and for utilizing your long list of talents, skills, and knowledge to continue to support the betterment of the community you call "home." That is a true testament to the kind of man you are and the kind of leader you are. So, thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Villegas. Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. Mr. Takemoto, I almost didn't recognize you, looking all casual and tanned today. Great to see you. Thanks for continuing to be involved in this. I know this is one of your babies when you were working for former Mayor Kim, so thank you for helping Council Member Chung kind of ushered this through and get it over the finish line. Council Member Chung, I'll be supporting this. I don't know if you know, but downtown Hilo has a special place in my heart. My dad used to own a gas station, right in downtown Hilo, right across Kalakaua Park, kitty-corner of the Post Office, where Atlas Recycling is now, so many, many, many years of my childhood was spent in Downtown Hilo pumping gas, just cruising those streets. So, do see the need for setting help something like this. I think the Kailua Village model has been extremely successful, and so I do want to make sure that we're supporting this process, especially if it's something that the community had asked for. I think this is one of those tools that's really remarkable in being community-driven, government-supported. So just providing another pot of funding, and a framework for community partners, and businesses, to be working in partnership with the government to be taking action on ideas and different plans that they have to solve for some of the challenges in the area. So right on, Council Member Chung. I'll be supporting this, and hopefully, we can start looking at maybe doing something like this for Pahoa. Thank you, Chair. I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kierkiewicz. Mr. Richards, go ahead. MR. RICHARDS: Yeah, thank you. I'm just going to echo what Ms. Kierkiewicz just said, Roy, good to see you. I agree, I've been going to Hilo, or coming to Hilo, for decades, right, Mr. Chung? I can appreciate the fact that a kind of reinvigoration, revitalization, is needed. I was driving through Hilo Page 6 FC-46 November 1,2022 maybe a couple of weeks ago, and I was thinking about that and trying to figure out what's the best way to do this, and this looks like the way to start doing this. So, I definitely going to support it. Thank you. I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Richards. Ms. Kimball. MS. KIMBALL: Thank you; and yeah, thank you, Council Member Chung for bringing this forward. I, too, was driving through Hilo the other day and just taking a moment to be grateful for living in this area and being able to go to a small town that still has that wonderful small-town feel and character, and just thinking about I want to make sure that we're able to preserve that over time. I had a couple of procedural questions. You know, in terms of the list of TMK and the 50 percent threshold, is it one TMK, one vote, or is it one entity, one vote, because I see there are some entities that own multiple parcels. CHR KANEALI`I-KLEINFELDER: Mr. Chung. MR. CHUNG: Yeah, best I can recall, I don't have the ordinance in front of me, but I did say there are two ways of doing this; one would be, of course, I think it's by the parcel, okay, the second one is by the assessed value of all of the parcels, when you talk about 50 percent and stuff like that. I'm just working off of memory, so I think it's by parcel not by person. MS. KIMBALL: Yeah, and that kind of—that actually kind of leads me to my question, is that I don't know what happened with the Village association, Kailua Village, but is it always a flat fee or is it ever based on like property value? MR. CHUNG: I think they're going to establish the fees. MS. KIMBALL: Okay. This is just for the purposes of presentation today? Got it, thank you. Yeah, I'm happy to support this and see it go through to the next step. Thank you for introducing something here at the end of Holeka's and my first term that we haven't seen before, so we can just keep growing our skillsets. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kimball. Mr. Chung, go ahead. MR. CHUNG: Yeah, and I really do appreciate all the kind words in support of this measure. But I just wanted to ask Roy if he had anything he'd like to say today. I mean it looks like it's going to move forward, and you'll always have that opportunity on the second go-around, depends on when you want to say it. He actually made a nice presentation too, I think, that might be appropriate. Not today, of course, but at some other time. But you want to say anything today, Roy? Okay, come up. Page 7 FC-46 November 1,2022 (Note: At this time, former Managing Director Roy Takemoto came forward to address the members of the Committee.) MR. TAKEMOTO: Roy Takemoto, happily retired. Thank you for the kind words and for your support in this Business Improvement District. We provided written testimony; we being the Steering Committee that was formed to restart this process. Take a look at the list of people who were there because they all contributed significantly to moving this along. We provided in our testimony some proposed amendments to the bill, and it would affect the text of the bill itself, but also the three exhibits. The District Plan that we provided in the testimony would be Exhibit A to the bill, and that would be replaced hopefully with what we had submitted. Exhibit B is the map, and that would also be replaced because that had changed between the previous bill and this bill. When we went out to the community, originally the boundary only included downtown Hilo. It was expanded to Zone 2 and 3, which included the areas along Kilauea all the way across the State Judiciary Building, to kind of unify that whole area, to give it a brand new identity, that would kind of connect it to Downtown Hilo, as well as to extend the clean-up and security services and homeless outreach to that area, as well. Exhibit C to the bill is the assessment road. And because of the extended area, Zone 1 to 3, that exhibit would have to be changed. We have an old list, and we kind of calculated. We sent notices to all the owners within those zones based on the current Real Property Tax mailing list to let them know initially that this idea was coming along, and we gave a second notice when we planned the special meeting for the owners. So, they had two—as well as a door-to-door distribution of flyers. So it was quite an effort to reach out to them. The response we got was not many directly opposed. A lot just waiting for more information, but a lot in favor. So, that's it. Do you have any questions? CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Takemoto. Good to see you. Any questions from the Council for Mr. Takemoto? Okay. Mr. Chung, anything else? MR. CHUNG: No. CHR KANEALI`I-KLEINFELDER: Okay. Okay, seeing no further discussion. Mr. Takemoto, wonderful to see you. You actually walked me through my understanding of an Improvement District. You're absolutely a wealth of information, so it's good to see you back here. I'm glad that you're retired because you should be retired and having fun. Page 8 FC-46 November 1,2022 Mr. Chung, I'll be supporting this today, and well-done. I remember this bill from about two years ago. I did wonder what happened to it because I know you started it, and just wondered where it ended up. So, good to see you back. With that, good discussion. We have the motion on the floor to forward Bill 230 to Council with a favorable recommendation, all in favor? Vote on Bill 230: The motion to recommend passage of Bill 230 on (Approved) first reading was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Richards, Villegas, and Chair Kaneali`i-Kleinfelder–8. Noes: None. Absent: Committee Member Lee Loy – 1. Excused: None. CHR KANEALII-KLEINFELDER: Can we please move to—let's go to Resolution 594-22, please? Res. 594-22: AUTHORIZES THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE FEDERAL EMERGENCY MANAGEMENT AGENCY PURSUANT TO HAWAII REVISED STATUTES SECTION 46-7, FOR A GRANT TO THE HAWAII COUNTY FIRE DEPARTMENT Allows for the receipt of$494,900, which would be used towards the department's purchase and installation of washer/extractor/dryers for personal protective equipment, and for grant writer fees. Reference: Comm. 1069 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Mr. Inaba moved to recommend adoption of Res. 594-22. Seconded by Mr. Richards. CHR KANEALII-KLEINFELDER: We do have our Fire Department members here today if there are any questions from the Council. Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. If I could just maybe call Chief Smith forward? I know this is something we actually talked about maybe one or two years ago, being able to buy equipment that would wash our PPE(Personal Protective Equipment) of all the toxic carcinogens that our firefighters are exposed to. So Chief, if you just wanted to take a minute to kind of talk about the grant that you were able to secure and what it's going to mean for our department? Page 9 FC-46 November 1,2022 (Note: At this time, Assistant Fire Chief Ian Smith came forward to address the members of the Committee.) MR. SMITH: Sure. Good afternoon, Chief Ian Smith, Hawaii Fire Department. You know, cancer prevention in the Fire service is something that our administration is passionate about. We know that it's in an area in a dangerous profession, and everything that we can do as a department to help offset some of those dangers, we want to do. So we are fortunate enough this is our third go-around writing this grant, so we are fortunate enough that this time around we were able to get approval for 21 extractors and dryers. So basically, these are it's kind of like a washing machine,just not for use with household items. This is just for the personal protective equipment. MS. KIERKIEWICZ: Great. And then Chief, do we have money in the budget to maintain what you're purchasing? I just want to make sure that we're keeping in mind, walking into the next budget cycle, the maintenance piece of it. MR. SMITH: Yeah. So there is a 10 percent match that goes along with this. The period of performance of the grant is over two years. Beyond that two years, we expected between warranties that come along with it and what we can get in the budget that we'll be able to see through, into the future. MS. KIERKIEWICZ: I'll be supporting this. MR. SMITH: Thank you. MS. KIERKIEWICZ: Third times a charm. MR. SMITH: Yes, yes. MS. KIERKIEWICZ: And I know how hard you—it's really difficult to be getting federal grants, and I know how important this one was for your department, so we'll be supporting it. Thank you again. Congratulations. Chair, I yield. MR. SMITH: Thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kierkiewicz. Seeing no further discussion, the motion is on the floor to forward Resolution 594-22 to Council with a favorable recommendation, all in favor? Page 10 FC-46 November 1,2022 Vote on Res. 594-22: The motion to recommend adoption of Res. 594-22 (Approved) was carried by the following voice vote: Ayes: Committee Members David, Inaba, Kierkiewicz, Kimball, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Chung and Lee Loy —2. Excused: None. CHR KANEALII-KLEINFELDER: Okay, let's move on to Bill 231, please. Bill 231: 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 Transfer from General Fund account($6,000); and appropriates the same to The Food Basket, Inc. account. Funds would be used to provide a grant to the Hawaii Island Food Basket to purchase food for its Kona warehouse. Reference: Comm. 1066 Intr. by: Mr. Kaneali`i- Kleinfelder(B/R) Motion to Approve: Mr. Inaba moved to recommend passage of Bill 231 on first reading. Seconded by Ms. David. CHR KANEALII-KLEINFELDER: Any discussion, Council Members? MR. INABA: Thank you. I believe there is an amendment, if I may? CHR KANEALII-KLEINFELDER: Okay, yes,please. Motion to Amend: Mr. Inaba moved to amend Bill 231 with the contents of Comm. 1066.1. Seconded by Ms. Kierkiewicz. CHR KANEALII-KLEINFELDER: Motion is on the floor. Council Members, discussion on the motion? MR. INABA: Yeah, I think this has to do with funds that I gave to the Food Basket, I believe so, and it was for $3,000. Somehow paperwork got mixed up and it was $6,000, so this bill and this corresponding amendment are to correct that. CHR KANEALII-KLEINFELDER: Okay. Thank you, Mr. Inaba. Page 11 FC-46 November 1,2022 MR. INABA: Mr. Richards may have something to add. CHR KANEALI`I-KLEINFELDER: Mr. Richards, go ahead. MR. RICHARDS: No, I think we ought to make him give the whole $6,000. I think the Food Bank could use it. I appreciate the donation to the Food Basket, Mr. Inaba. But yeah, that's what I was going to ask, how come the cutback? But I understand,paperwork. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Richards. Okay, seeing no further discussion. Motion for the amendment is on the floor. All in favor of the amendment? Vote on Motion The motion to amend Bill 231 with the contents of to Amend: Comm.1066.1 2 was carried by the following voice vote: (Approved) Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Lee Loy — 1. Excused: None. CHR KANEALI`I-KLEINFELDER: Back to the main motion on Bill 231, as amended, any further discussion? Seeing none. All in favor? Vote on Bill 231: The motion to recommend passage of Bill 231, Draft 3 Draft 2, as amended to Draft 3, on first reading was carried (Approved) by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Lee Loy — 1. Excused: None. CHR KANEALI`I-KLEINFELDER: And that was for Bill 231, being forwarded to the Council with a favorable recommendation. Mr. Clerk,please. MR. BROWN: I want to apologize, I haven't been asking if there is any testimony for each item, so anybody out there in the public or at our sites please let us know, speak up if you want to testify. We are on Communication 31.46. Page 12 FC-46 November 1,2022 Comm. 31.46: REPORT OF CHANGE ORDERS AUTHORIZED: SEPTEMBER 16 –30, 2022 From Finance Director Deanna Sako, dated October 4, 2022, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Motion to Closes File: Mr. Inaba moved to close file on Comm. 31.46. Seconded by Ms. David. CHR KANEALI`I-KLEINFELDER: Council Members, discussion? Mr. Inaba, go ahead. MR. INABA: Yeah, I know Ms. Hirota is here. There are change orders for Kukui Ola in this report. So Ms. Hirota, if you could please just give us the update on these change orders, and if time permits, a quick update on where we are? (Note: At this time, Housing and Community Development Specialist Sharon Hirota came forward to address the members of the Committee.) MS. HIROTA: Sharon Hirota, Division Manager, Community Engagement for the Office of Housing and Community Development. I'm here to provide information in regard to the contract amendments on the report. It reflects amendments that we've been working with our Design Build contractor for the Kukuiola Emergency Shelter and Assessment project out in Kailua-Kona. So a combination of adjustments to reflect changes in our contract. So, a couple of things. So the first one to work with started under the proclamation issued by Governor Ige on homelessness. And then, we were informed that the work needs to end with the existing contract, the Design Build contract for the construction of the access road, and the construction of—the prep work prior to vertical construction. So based on that, we had to go back to our contracts and do a reconciliation and do some adjustments to the contract because some of the work included the design of the village, which we needed to then pull out. I think the most recent change is Amendment No. 5, which adds $6.1 million to the Design Build contract, and this iswe finalized our contract with the developer that will provide for rough grading of the entire site, the construction of the access road leading into the project, including the installation of the infrastructure to support utilities and drainage. It will also include paving curb and gutter striping and signage. And then the State is also requiring us to do fencing under the side of the property and address the turnout lane from the project onto Kealakehe Parkway. MR. INABA: Thank you, and when do we think this access road, specific to these change orders, will be completed? Page 13 FC-46 November 1,2022 MS. HIROTA: Work started, so long-awaited project. We are finishing theI think earlier we informed you that we received an award of$10 million through the U.S. Congressional Office, of$10 million to support the vertical construction of this project; and upon receipt of federal dollars,we needed to complete the federally required environmental assessment. We are at the final stages of that. We hope that we will be completed with that work by mid by the end of November, early December, and with 30 days' notice to a contractor, we will start work. MR. INABA: Thank you, Chair. I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. Thank you, Ms. Hirota. Seeing no further discussion. Motion is on the floor to close file on Communication 31.46, all in favor? Vote on Comm. 31.46: The motion to close file on Comm. 31.46 was carried Filed by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Lee Loy — 1. Excused: None. CHR KANEALI`I-KLEINFELDER: Mr. Clerk, let's go to Communication 770.1. Comm. 770.1: SINGLE AUDIT OF FEDERAL FINANCIAL ASSISTANCE PROGRAMS FOR THE FISCAL YEAR ENDING JUNE 30, 2021 From County Auditor Tyler J. Benner, dated October 11, 2022, transmitting the above report prepared by N&K CPAs, Inc.,pursuant to Hawaii County Charter, Section 10-13. ; and Comm. 770.2: From County Auditor Tyler J. Benner, dated October 11, 2022, transmitting PowerPoint presentation materials to be displayed by N&K CPAs, Inc. Page 14 FC-46 November 1,2022 Motion to Close File: Mr. Inaba moved to close file on Comm. 770.1 and Comm. 770.2. Seconded by Ms. David. CHR KANEALI`I-KLEINFELDER: We have joining us today some of the members from N&K, as well as Ms. Deanna Sako, our Finance Director. Gentlemen, can you guys give us a brief overview of the audit that was performed for the Federal Assistance Programs? (Note: At this time, Audit Principal Chad Funasaki and Assurance Services Division Senior Manager Andrew Ho, both of N&K CPAs, Inc., came forward to address the members of the Committee.) CHR KANEALI`I-KLEINFELDER: Thank you for joining us today. MR. FUNASAKL Okay. Hi. Yeah, good afternoon, Chair Kaneali`i- Kleinfelder, Finance Committee members. My name is Chad Funasaki, and with me, I have Andrew Ho. We're from N&K CPAs. This afternoon, I have a pretty short slide to cover the—it's a Single Audit Report. We did meet with the Committee members earlier this year to go over the Annual Comprehensive Financial Report. This is for the Single Audit or the Compliance Audit. Again, we have a short slide-deck here, and I'll have Andrew maybe walk us through it, and then we're open for questions, I guess, after the presentation. So go ahead, Andrew. MR. HO: Good afternoon, Chair and Finance Committee members. So as Chad mentioned, this is just a brief summary of the Scope of Audit services. I think maybe a few months ago we presented on the Annual Comprehensive Financial Report. (Note: At this time, Mr. Funasaki and Mr. Ho 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.770.2.) MR. HO: Like Chad mentioned, that's actually all we have for our presentation. We just want to open it up to any questions you folks may have. CHR KANEALI`I-KLEINFELDER: Thank you very much, gentlemen. Council, questions? Okay, we got no questions on this side. Oh, wait, we got one. Ms. Villegas, go ahead. Page 15 FC-46 November 1,2022 MS. VILLEGAS: Yeah, so just to break it down in laymen's terms. In looking though this,just kind of a short PowerPoint, it appears to me that we are in no real risk of any issues after this audit. Is that a correct assumption? MR. FUNASAKL Yeah, this pertains to the 2021 year. Again, well it is—it's obviously a bit later than it has been in previous years, but we're obviously into we're done with Fiscal 2022, and we're actually in the process of that audit, presently. But during that period of time, as Andrew indicated, we had looked at those three programs, the biggest being that Coronavirus Relief Fund, and that was like roughly $77 million in total federal expenditures under that program, which I believe was about half. Half of your total federal expenditures were related to that Coronavirus Relief Fund. So as it pertains to those three programs, no, we had nothing to report as it relates to internal controls over compliance as well as any compliance findings that we came across. MS. VILLEGAS: Thank you for clarifying, I just wanted to make sure that I was getting the correct impression that this is good news. So congratulations to the Administration, Department of Finance, and all the other departments that navigated a windfall of much-appreciated resources, but also in an unprecedented time withoftentimes, directions and specifics coming oddly enough sometimes on the heels of what had been allocated. So I just want to complement our teams on managing those resources so efficiently, effectively, from what seems in 2021 without any issues according to this audit, so thank you for that good news today. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Villegas. Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. Thank you, gentlemen, for the report and the brief presentation. So the good news is we've spent, as a County, federal funding responsibly, which is always a good thing. Just curious, how long does it take for you folks to do this examination of the various transactions? How long does the audit take? MR. FUNASAKL It kind of depends. We normally start—well, on the Annual Comprehensive Financial Report, which is what we're in the process with now, we typically started maybe, I'd say September. We need to get—well, obviously we try and push to get it done and completed by the end of the year. The Single Audit piece, it kind of depends on the amount of programs we need to look at. I know—again, as I mentioned earlier, this particular report is obviously a lot later than it typically has been due to there were extensions granted by the Federal Government for the deadline for the Single Audit Report. It's typically due—and it's going to revert back to being due nine months after Fiscal Year End. So for the 2022 audit, it's due end of March of 2023; so there's no longer that six-month extension that they granted in previous years because of COVID. Page 16 FC-46 November 1,2022 But to answer your question, it's a little hard to say. I mean, we definitely need to get it done by March, and it depends on the amount of programs we need to look at. We do conduct an assessment as to which programs need to be audited, so that can change from year to year. So, it really depends. MS. KIERKIEWICZ: And that assessment of what programs to look at, that's something that you do on your own, in partnership with the Auditor's office, in consultation with Finance Department, how does that play out? MR. FUNASAKL It's in consultation, based on information that we receive from, I believe, from Kay (Oshiro) or Deanna, as it relates to the amount of federal expenditures. Also, we are required to rotate programs back on. Like if we haven't looked at a program in two years, we're almost required to audit that program. MS. KIERKIEWICZ: Okay. MR. FUNASAKL So it really depends on the amount of expenditures, the size of the program, the assessment of risk; and also again, rotation. If we haven't looked at it for a while, we need to look at it again. So those are various reasons or things that come into play as to which programs we need to look at. MS. KIERKIEWICZ: But with the Coronavirus Relief Fund close to $80 million, the nature of that fund,just something we haven't really utilized, expended, as County governments before. So could you just really briefly, for the Council, walk us through? What exactly are you looking for when you do these audits? Because that's a lot of transactions to be studying and to be making a decision upon. So what exactly are you requesting from the Finance Department, and evaluating to come to your conclusion? MR. FUNASAKL Well, I think for this particular program obviously, it's the liability of the expenditures, if it's being spent in accordance with federal regulations of program requirements. I believe that's a big area that we look at, and that's typical in any part that we look at. I mean, are the expenditures allowable? So depending on the program, you could have other types of things, like eligibility may become a requirement. There's procurement. There could be things like any matching cost-sharing. There could be special tests related to that program, so it really varies. But as it relates to the Coronavirus Relief Funds, it's primarily going to be the allowability of those expenditures. MS. KIERKIEWICZ: Okay, that's really helpful because I know that as we receive the funding, there were so many changes within the Treasury. I know that Director Sako was just very diligent in making sure we stayed up on the rules so Page 17 FC-46 November 1,2022 that all of our expenditures were in fact legal, because we certainly didn't want to have to be put ourselves into any jeopardy of any funding being called back. Thank you, gentlemen. Really appreciate your indulging me in these questions. Thank you, Chair. I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kierkiewicz. Okay, seeing no other questions for you folks. I have one question. Does your audit take into account—and for example, I'm looking at different programs, and the federal program award amount, total federal expenditures, and the first question that pops into my mind is how much time do we have left to spend down the rest? Does the audit take into account the amount of time left to expend the total award amount? MR. FUNASAKL Well, typically there's a period of performance that I know a lot of awards have those. As it relates to the Coronavirus Relief Fund, I don't— CHR. on'tCHR KANEALI`I-KLEINFELDER: This would really apply across the board, and I understand this is for the 2021 Fiscal Year, correct? (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: So Chair, if I could just add to this? CHR KANEALI`I-KLEINFELDER: Thank you. MS. SAKO: The total federal expenditures, it's actually for the current fiscal year being audited, so in some cases, some of the amounts may have been spent in previous years, as well. CHR KANEALI`I-KLEINFELDER: Okay. Is it worth adding in or having it available within the timeframe to spend down these funds? Some may be a five-year period, some might be a one-year grant. MS. SAKO: I believe—Chad can correct me, but I believe this is the format required by the Bond Federal Government. CHR KANEALI`I-KLEINFELDER: Okay. Okay. MR. FUNASAKL Yes. Yeah. CHR KANEALI`I-KLEINFELDER: So the audit doesn't take into account though, timeframe, or if all funds would be expended in the timeframe allowed? Page 18 FC-46 November 1,2022 MR. FUNASAKL Well, again, there is a requirement for a period of performance, so it's not—would be indefinite. I mean, there is a stated time as to when these funds need to be expended by. MR. HO: I think,just to add to what Chad is saying, that would be more so on like a major program level like as we're going through and identifying applicable compliance requirements, that's where we would probably look at that. But with regards to maybe overall, with regard to the schedule of expenditures, the federal awards, I don't—maybe—Chad, I don't know if you want to add in on that. MR. FUNASAKL Well, the period of performance does apply. That requirement does apply to this program. So yes, there is a timeline for when these funds need to be spent. I don't know off the top of my head as to when these funds need to be expended by. CHR KANEALI`I-KLEINFELDER: I think just for me, these are all going to be different, each different grant, each program is going to be different. MR. FUNASAKL Right. CHR KANEALI`I-KLEINFELDER: So maybe hard to track, but good for the Council to know. I'm just wondering if MS. SAKO: I think we look at it probably more closely when we're closing the books. Our accountants up in the Accounts Division actually sits down with each department and goes through grant-by-grant to make sure they've expended everything by the end date of each grant; because some of the grants are good for one year and sometimes the year is our fiscal year, sometimes the year is the federal fiscal year. Some grants are good for three years, five years, it just kind of—each one is a little bit different. CHR KANEALI`I-KLEINFELDER: Okay. We track internally, though? MS. SAKO: Um-hum, we do. CHR KANEALI`I-KLEINFELDER: Okay. So not part of the audit function? MS. SAKO: No. CHR KANEALI`I-KLEINFELDER: Okay. Okay, that was my only question. Thank you, gentlemen, appreciate your time. Ms. Sako, thank you. Okay, seeing no discussion, Council Members, we have the motion on the floor to close file on Communication 770.1, all in favor? Page 19 FC-46 November 1,2022 Vote on Comms. 770.1: The motion to close file on Comm. 770.1 was carried Filed by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Villegas, and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Lee Loy and Richards —2. Excused: None. CHR KANEALI`I-KLEINFELDER: Can we please move to Comm. 1077? MR. FUNASAKL Thank you. MR. HO: Thank you. CHR KANEALI`I-KLEINFELDER: Thank you, gentlemen. Statements The Chair called Kai McGuire, Esq., who registered to speak regarding from the Comm. 1077, and came forward when called by the Chair. Public on Comm. 1077: CHR KANEALI`I-KLEINFELDER: Mr. Clerk, can we go to Communication 1077, please? Page 20 FC-46 November 1,2022 Comm. 1077: APPLICATIONS FOR 2022 STEWARDSHIP GRANTS FOR COUNTY LANDS ACQUIRED THROUGH THE PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION FUND From Finance Director Deanna S. Sako, dated October 14, 2022,presenting favorable recommendations for the following qualified nonprofit organizations requesting funding to maintain certain parcels acquired through the Public Access, Open Space, and Natural Resources Preservation Fund: • Kohanaiki `Ohana(`O`oma Shoreline Beach Park) Funds requested: $20,380 • Ho`omalu Ka`u(Kahua Olohu) Funds requested: $26,675 • Na Mamo O Kawa(Kawa`a/Kawa`a Bay) Funds requested: $117,012.48 • Friends of Amy B. H. Greenwell Ethnobotanical Gardens Funds requested: $95,380 • P6h5h5 I Ka Lani (Waipi`o Valley Lookout) Funds requested: $39,710 • Kohala Lihikai (Kaiholena) Funds requested: $59,298 • Kohala Lihikai (Halawa Hale O Kaili) Funds requested: $36,651 Motion to Close File: Mr. Inaba moved to close file Comm. 1077. Seconded by Mr. Richards. CHR KANEALI`I-KLEINFELDER: Council Members, discussion on Communication 1077? Mr. Inaba, go ahead. MR. INABA: I just had a question. I know these are the recommendations being provided by the Finance Department, who now manages the Maintenance Fund, but what the process was or has been to kind of get out to community that this is an opportunity to apply for? Do we know what the process is? CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. Ms. Sako did say that Mr. Hamana Ventura is in Kona to help us with some of this, especially this one in particular. MR. INABA: Oh, wonderful. Aloha. (Note: At this time, Real Property Manager Hamana Ventura came forward to address the members of the Committee.) CHR KANEALI`I-KLEINFELDER: Mr. Ventura, go ahead. Page 21 FC-46 November 1,2022 MR. VENTURA: Okay, thank you. Hamana Ventura, Property Manager. Thanks for your question. You know, it's been word-of-mouth for all these years. But as we get more—where I used to be in part of the stewardship program we have website information available to our stewards, and we're always available to answer questions. We'd love to interact more; we're moving in that direction. So, whatever we can do to help this along. MR. INABA: Thank you. Perhaps for organizations who are not already tied to a specific parcel like some of these are, is there an opportunity or what is required so that they can be you know, an organization that helps with stewardship, is there an application that they have to apply for to be linked to a certain property? MR. VENTURA: Yeah, so we have applications in place on our website. But the most important thing, similar to the Council grants, is that either you have to be a 501(c)(3) or be umbrellaed under to apply. So if there are groups out there that have interest, then we can help walk them through that process, or help put them in touch with groups or organizations who can they can lean on for support to work their way through this process. MR. INABA: Thank you very much. That's all the questions I have, Chair. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba. Thank you, Mr. Ventura. Council Members? Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. Mahalo nui, Hamana, and I know she's not on right now, Maxine Cutler. You guys have been so incredibly helpful to a lot of the nonprofit groups that are applying for this fund. So I just want to take a moment to thank you and recognize all of your efforts in the background to ensure that our applicants are submitting solid applications. I notice here in the transmittal from the Director that there are a couple of folks — a couple of applications that were not recommended for funding. One of them just wasn't allowed because they were trying to apply for funding that wasn't on that isn't a PONC (Preservation, Open Space, and Natural Resources Commission)property, but the other was recommended to not receive funding by our commission. Are you able to kind of share with us what some of the issues were with that particular application? Is it some organization that's received funding in the past? Are there ways in which to kind of help build capacity when the organization—so that next time they apply, they're more successful in obtaining the funding? MR. VENTURA: Yeah, so thank you for that question. So what we're learning as we go through this process is that sometimes we—our expectations are a little bit more advanced in what these applicants want to do. In particular, we've picked up some parcels that have some really significant archaeological sites; and what we inherited are burial tribunal plants, preservation plants, that were Page 22 FC-46 November 1,2022 developed prior to the year 2000. So what we've figured out as we go through the process is that what we need to do is take a step back, work with State Historic Preservation Division, get back onto our projects, and update our burial tribunal plants or preservation plants to reflect our current situation. As us being owners, we have a chance to craft it more in line with what our stewards, our lineal descendants, what we want to see these projects envelope. So the timing in that particular case just wasn't right. It wasn't that we didn't want to move forward, we thought that—we figured out that we as an owner have to do our homework before we can move forward. MS. KIERKIEWICZ: Okay. Thanks for the explanation, Hamana. I just want to make sure that all of our nonprofit partners are getting the funding they need to steward; but in this particular situation, there's kuleana on the County side that we need to get done first before we can responsibly engage a nonprofit partner to maintain the parcel. MR. VENTURA: Yeah. Yeah, I mean we appreciate all of the steps that they underwent to get there, but going through the process, we figured out some key elements that we're going to go back to square one and do it the right way. MS. KIERKIEWICZ: Okay. Director, I hate to put you on the spot with this one, but I get plenty of calls and messages about this particular question, and it's related to—when applicants apply for stewardship and maintenance funds, they ask about administrative funding. Oftentimes, they're working with a fiscal nonprofit sponsor to kind of manage the funding. So looking through the Charter, it's not explicitly stated that yes, you can in fact use some of that money for administrative costs. Can you confirm that? If that's the case, in order to make that happen, would we have to put in another Charter amendment? MS. SAKO: Pretty much, yes. So one of the thingsI mean, we all said to not make the Charter so detailed, but that still is what resulted, so it's not included. So, anywhere where they can, if they have an employee who is doing work or something like that, they may be able to allocate it to the project, but it's going to have to be part of the project. It cannot just have,you know, like a 10 percent administration fee on top of it. That's not allowed. MS. KIERKIEWICZ: Correct. I just wanted to make sure that we're saying it on the record because some folks are of the mind that it doesn't say you can't, therefore it can be funded. No, no, that's not what our legal team is saying here. MS. SAKO: Unfortunately, there's not like a catch-all phrase at the end. It says, "And other costs that may"you know, "other related costs" or something like that. So because each line item is so specific, it doesn't fit within any of those. Page 23 FC-46 November 1,2022 MS. KIERKIEWICZ: Thank you for taking the time to kind of just share that out with the community. But again,just going back to mahaloing Maxine and Hamana for really working with the nonprofit partners to really make sure that they find a way forward and fund those costs. Okay, right on. Thank you, Director. I appreciate it. I'll be supporting the applications that are for today. I'm just really grateful to our community partners for stepping up and taking on this kuleana. Thank you, Chair. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kierkiewicz. Seeing no Ms. Kimball, go ahead. MS. KIMBALL: Yeah. Actually, Director Sako, I just had a clarifying question, as well. And again, thank you, and your team for taking this on and expediting it. I know that folks are pleased to see us caught up. What was, if you can remind me, the total amount that ended up going into the PONC's Stewardship Funds for this fiscal year? MS. SAKO: Oh, for the year—I can do the math. The math—and all we can have in the fund is $3 million. MR. VENTURA: Yeah. MS. KIMBALL: The cap. But how much time went in ? MS. SAKO: Just a second, I've got to do the math. It's a quarter percent, yes. So I think about$1 million if I did the math quickly and fast enough. MS. KIMBALL: Okay, yeah. So we're still on an annual basis, not actually hitting the annual income, because this is close to about$400,000 in expenditures. MS. SAKO: Oh right, the amount that we're giving? Correct. MS. KIMBALL: For this. Right, right, right. So when we cross that$3 million mark, it goes into the General Fund? MS. SAKO: We just don't transfer anymore. MS. KIMBALL: We just don't—okay. Okay, great. I just wanted some clarifying questions around that, yeah. MS. SAKO: And just to clarify, this may not be a good year to judge off of, because we got backed up. So we treated—each grantee kind of applied and worked it out separately, and so some didn't apply for this year because they knew they had gotten last year, which they're actually spending this year. Some had actually spent, and we reimbursed them for the things from last year, so they Page 24 FC-46 November 1,2022 did apply this year. So hopefully, by next year, everyone will be caught up and it would be almost a more normal amount. MS. KIMBALL: Okay, great. What do you think the more normal amount is? Does it look like ? MS. SAKO: I'm not sure yet. MS. KIMBALL: Okay, well we'll wait to see. MS. SAKO: Because we keep adding parcels, so we'll see. MS. KIMBALL: Yeah, yeah. I mean, I think, kind of leaning off of Council Member Inaba's questions, about getting this out there. Maybe another useful bit of information for you to provide for us, Hamana, is, do we have parcels out there that need stewards, that are, you know, in a condition where we want to make sure we're recruiting some nonprofit to start doing work on those, then we can work on those MS. SAKO: Like parcels where no one's applied? MS. KIMBALL: Right, yeah. Yeah, so I think that might be a useful bit of information for us to have. Thank you, I yield, Chair. CHR KANEALI`I-KLEINFELDER: Thank you, Ms. Kimball. Okay, seeing no further discussion. Mr. McGuire, I do see your hand up. Did you want to add anything to the conversation? MR. MCGUIRE: No, I just wanted to say that if any of your constituents reach out to you about the program and they have questions, feel free to send them my way, and I can share them about my experience from the grantee's side. So yeah, I just wanted to throw that out there. I'm willing to help any of your constituents with any questions about the program that—in addition to what they can get from the program itself. CHR KANEALI`I-KLEINFELDER: Very, very nice of you, thank you very much. Appreciate it. MR. MCGUIRE: Okay, thank you guys. CHR KANEALI`I-KLEINFELDER: Okay, thank you. Okay, with that, I see no further discussion. Thank you, Ms. Sako. Thank you, Mr. Ventura. We have the motion on the floor to close file on Communication 1077. Council Members, all in favor? Page 25 FC-46 November 1,2022 Vote on Comm. 1077: The motion to close file on Comm. 1077 was carried Filed by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Richards, Villegas, and Chair Kaneali`i-Kleinfelder–8. Noes: None. Absent: Committee Member Lee Loy – 1. Excused: None. CHR KANEALII-KLEINFELDER: Let's go to Resolution 595-22, please. Res. 595-22: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR LEASE OF REAL PROPERTY FOR THE COUNTY OF HAWAII DEPARTMENT OF FINANCE Authorizes the Mayor to enter into a five-year lease agreement with an option to extend for two additional five-year terms, with New Kaiko`o Building, Inc., located at 120 Pauahi Street, Hilo, for approximately 12,571 square feet of office space for the Vehicle Registration and Licensing Division and other County departments. Reference: Comm. 1073 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Mr. Inaba moved to recommend adoption of Res. 595-22. Seconded by Ms. David. CHR KANEALII-KLEINFELDER: Council Members, discussion on the lease agreement? We do have Mr. Ventura here as well to answer questions if there are any. Okay, seeing none. Mr. Ventura, could you just give us a real high-level summary? I didn't see any costs associated with the lease. I don't know if you've gotten there so far with this agreement, this resolution. (Note: At this time, Real Property Manager Hamana Ventura came forward to address the members of the Committee.) MR. VENTURA: Yeah, so what we worked out to is $1.15 a square foot, base-rent plus CAM (Common Area Maintenance), which is $1.27. This is a Bank of Hawaii, they built a stand-alone building; this became available. It gives us the opportunity and looked—and combine services like we've done in Waimea, Puna, and Kona. It's close to County services, so it puts us right in the central location where we're next to our County Building and Aupuni Center. Page 26 FC-46 November 1,2022 CHR KANEALI`I-KLEINFELDER: Okay, so $1.15 per square foot plus $1.27 per square foot CAM? MR. VENTURA: Yep. CHR KANEALI`I-KLEINFELDER: So, $2.42? MR. VENTURA: So it comes up to—correct. So it comes out to $30,692 per month. CHR KANEALI`I-KLEINFELDER: Is that fair right now for a market value for the going rate in Hilo? MR. VENTURA: Yeah. I mean, $1.15 a square foot, that's a decent price. CHR KANEALI`I-KLEINFELDER: And the CAM? MR. VENTURA: The CAM is a little bit up there, but when you're dealing with central area and so forth, I mean, that's just how it goes. CHR KANEALI`I-KLEINFELDER: Okay. Yeah, that seems high for CAM, but if they're including a/c (Air Conditioning) and electric. MR. VENTURA: Yep. CHR KANEALI`I-KLEINFELDER: Okay. Mr. Inaba, go ahead. MR. INABA: Yeah,just a quick question. I mean, I know oftentimes we do see the amounts put in. Will we see an amendment to this resolution since you have the amounts now? MR. VENTURA: We can include it next time around. MR. INABA: Okay, thank you. MR. VENTURA: Sure, no problem. MR. INABA: I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Inaba, good recommendation. If you could, Mr. Ventura. MR. VENTURA: Will do. Page 27 FC-46 November 1,2022 CHR KANEALII-KLEINFELDER: Okay, seeing no further discussion on this end. We have the motion on the floor, all in favor? Vote on Res. 595-22: The motion to recommend adoption of Res. 595-22 (Approved) was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Richards, and and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Lee Loy and Villegas —2. Excused: None. MR. BROWN: Chair, do you mind just repeating the motion real quick,just for the record,please? CHR KANEALII-KLEINFELDER: That was a motion to forward Resolution 595-22, and the vote was seven members in favor, two being excused, Ms. Lee Loy and Ms. Villegas. MR. BROWN: Thank you, Chair. CHR KANEALII-KLEINFELDER: Thank you. Let's go to—we have Mr. Andoh joining us now. Let's go to Bill 237, Mr. Clerk. Bill 237: AMENDS ORDINANCE NO. 22-63, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2023 Decreases revenues in the Federal Transit Administration Fiscal Year 2021-2022 (-$2,422,928) and the Section 5339 Capital Grant Fiscal Year 2021-2022 (-$1,861,345) accounts; and appropriates the same to the Federal Transit Administration Fiscal Year 2022-2023 ($2,422,928) and the Section 5339 Capital Grant Fiscal Year 2022-2023 account($1,861,345). Reference: Comm. 1072 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Mr. Inaba moved to recommend passage of Bill 237 on first reading. Seconded by Ms. David. CHR KANEALII-KLEINFELDER: Mr. Andoh,joining us today. Do you want to summarize for us? Looks pretty straightforward. Thank you for being here today, Director. Page 28 FC-46 November 1,2022 (Note: At this time, Mass Transit Agency Administrator John Andoh came forward to address the members of the Committee. MR. ANDOH: Good afternoon, Chair and Council, John Andoh, Mass Transit Administrator. Purpose of this bill is to appropriate additional funds that we've received from the Hawaii Department of Transportation through the Federal Transit Administration to support our rural transit operations as well as the purchase of additional buses to support the Hele-On system, in addition to the funds to support operations, which will pay our operation's contractor. It will also fund four positions with the Mass Transit Agency to expand our capacity to manage the overall multi-modal transportation system. Happy to answer any questions if there are any. CHR KANEALI`I-KLEINFELDER: Thank you, Director. Okay, seeing no questions. Oh, Mr. Richards. MR. RICHARDS: Not a question. John, you've been knocking it all out of the ballpark, I'll tell you. With all the grants that you've brought for Mass Transit, I just want to say thank you because what you've done is, and we've discussed this about our transportation. Transportation is the economic generator—economic driver for our County and having this in such good hands with a bright direction, a lot of it, you deserve the credit because you've brought all this funding to us to get us where we need to be, so that's just a thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Mr. Richards. Seeing no further discussion. Motion is on the floor to forward Bill 237 to Council with a favorable recommendation, all in favor? Vote on Bill 237: The motion to recommend passage of Bill 237 on (Approved) first reading was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Richards, and and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Lee Loy and Villegas —2. Excused: None. CHR KANEALI`I-KLEINFELDER: Thank you very much, Director. Let's circle back to Communication 1074, Mr. Clerk. Statements The Chair called Sharon Gilbert, who registered to comment on Comm. 1074, from the and came forward when called by the Chair. Public on Comm. 1074: Page 29 FC-46 November 1,2022 CHR KANEALI`I-KLEINFELDER: Mr. Clerk? Comm. 1074: NOTIFICATION OF FUND BALANCE AS OF JUNE 30, 2022 From Finance Director Deanna Sako, dated October 14, 2022, transmitting the above pursuant to Section 2-12.4, Hawaii County Code, indicating a total budgetary fund balance of$70,373,890. Motion to Close File: Mr. Inaba moved to close file Comm. 1074. Seconded by Ms. David. CHR KANEALI`I-KLEINFELDER: We do have Ms. Sako joining us today. Council Members, discussion? CHR KANEALI`I-KLEINFELDER: Mr. Richards, go ahead. MR. RICHARDS: Ms. Sako, couple quick questions. (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: Good afternoon. MR. RICHARDS: Hi Deanna, thanks. Quickly, concerning you say a good portion was as a result of the TAT (Transient Accommodations Tax) collections? MS. SAKO: Um-hum. MR. RICHARDS: So, and again, you and I discussed this, that helps us measure our economy here. TAT collections, what was the total? So what would that reflect, as far as the tourism side? MS. SAKO: It was $12.8 (million) for the six months, and I would have to go back to look, that may actually be only 5 months of collections, because like—it was effective January 1st, 2022, but it was you know, for your January revenues, you pay in February, so it may have only been February through June. MR. RICHARDS: So that would be a five-month revenue of$12.2 million? MS. SAKO: $12.8 (million). MR. RICHARDS: $12.8 million, okay. MS. SAKO: They may have accrued the June revenue, so it—very likely a six- month, but I forgot to check before I came down here. Page 30 FC-46 November 1,2022 MR. RICHARDS: Okay, and then part of that, our Fund Balance, the GET (General Excise Tax) are half-percent, is that reflected in our overall collections? Where I'm going with that, is again, measuring the total economy. MS. SAKO: So GET, why it was strong, is it's not part of this Fund Balance calculation because it does have its own fund. MR. RICHARDS: Uh-huh. MS. SAKO: It was strong. I would have to go look what the final number was. MR. RICHARDS: Okay, I'd be curious on that one because that will help us measure the total economy. Thank you, Chair. I yield. CHR KANEALI`I-KLEINFELDER: Seeing no questions, no lights. Ms. Sako, what is the amount of Fund Balance to make sure we have a good bond rating and such and such. Is there a certain percentage? I think you said this before, and I you know, thank you. MS. SAKO: With the Budget Stabilization Fund and the Fund Balance, we want to have between five and fifteen percent of our General Fund expenditures. CHR KANEALI`I-KLEINFELDER: We need to have five to ten percent between Budget Stabilization and Fund Balance? MS. SAKO: Uh-hum. But I would look at the excess Fund Balance at the top line because the bottom line, the $27.9 million, is committed in the current year's budget. CHR KANEALI`I-KLEINFELDER: Okay, what is the—what would be the amount then? MS. SAKO: I can look and get back to you. I have the total budget number in my head, not the General Fund, only. CHR KANEALI`I-KLEINFELDER: Okay. MS. SAKO: But we're probably right at about 10 percent right now. CHR KANEALI`I-KLEINFELDER: Okay, thank you. That's all I had. Thank you, Ms. Sako. Anyone else? Seeing none. Okay, motion is on the floor to close file on Communication 1074, all in favor? Page 31 FC-46 November 1,2022 Vote on Comm. 1074: The motion to close file on Comm. 1074 was carried Filed by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Lee Loy — 1. Excused: None. CHR KANEALII-KLEINFELDER: Let's go up to the top, Communication 30.39 Comm. 30.39: REPORT OF FUND TRANSFERS AUTHORIZED: SEPTEMBER 16—30, 2022 From Controller Kay Oshiro, dated October 10, 2022. Vote on Comm. 30.39: Mr. Inaba moved to close file on Comm. 30.39. Filed Seconded by Ms. David and was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Lee Loy — 1. Excused: None. CHR KANEALII-KLEINFELDER: Moving on to Bill No. 232. Bill 232: 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 Block Grant Program Income account($250,000); and appropriates the same to the West Hawaii Emergency Shelter and Facility Energy Efficiency Improvements account, bringing the total appropriation to $400,000. These additional funds will be used to renovate the facility in accordance with the Fiscal Year 2021 Community Development Block Grant Annual Action Plan. Reference: Comm. 1067 Intr. by: Mr. Kaneali`i- Kleinfelder(B/R) Page 32 FC-46 November 1,2022 Vote on Bill 232: Mr. Inaba moved to recommend passage of Bill 232 (Approved) on first reading. Seconded by Ms. David and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Lee Loy — 1. Excused: None. CHR KANEALII-KLEINFELDER: And I did miss a communication. We'll circle back to Communication 460.5. Comm. 460.5: FIRST QUARTER REPORT OF UNCAPITALIZED DONATIONS: JULY—SEPTEMBER 2022 From Finance Director Deanna Sako, dated October 14, 2022, transmitting the above report pursuant to Resolution 408-22. Vote on Comm. 460.5: Mr. Inaba moved to close file on Comm. 460.5. Filed Seconded by Mr. Richards and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Lee Loy — 1. Excused: None. CHR KANEALII-KLEINFELDER: Going back to our bills, we are on Bill 233, and excuse my jumping around today. Bill 233: 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 Home Program —Tenant Based Rental Assistance Fraud Recovery Income account($5,000); and appropriates the same to the Tenant Based Rental Assistance (TBRA) Fraud Recovery Income account. Allows for the receipt of funds recovered from tenants who have committed fraud. Reference: Comm. 1068 Intr. by: Mr. Kaneali`i- Kleinfelder(B/R) Page 33 FC-46 November 1,2022 Vote on Bill 233: Mr. Inaba moved to recommend passage of Bill 233 (Approved) on first reading. Seconded by Ms. David and carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Lee Loy — 1. Excused: None. CHR KANEALII-KLEINFELDER: Moving on to Bill 234, please. Bill 234: 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 —Fiscal Year 2021 Assistance to Firefighters Grant account($494,900); and appropriates the same to the Fiscal Year 2021 Assistance to Firefighters Grant account. Funds would be used towards the department's purchase and installation of washer/extractor/dryers for personal protective equipment, and for grant writer fees. Reference: Comm. 1069 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Mr. Inaba moved to recommend passage of Bill 234. Seconded by Ms. David. CHR KANEALII-KLEINFELDER: Council Members, any discussion? Seeing none. This is relative to Resolution 594, which we discussed earlier. Look for everyone's support on this. All in favor of forwarding Bill 234 to Council with a favorable recommendation? Vote on Bill 234: The motion to recommend passage of Bill 234 on (Approved) first reading was carried by the following voice vote: Ayes: Committee Members Chung, David, Inaba, Kierkiewicz, Kimball, Richards, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Lee Loy — 1. Excused: None. CHR KANEALII-KLEINFELDER: That does bring us to the end of our agenda. Page 34