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HomeMy WebLinkAboutMIN FC 2023/01/04 (2022-2024)Committee on Finance I't Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii January 4, 2023 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 1:01 p.m., in the Council Chambers, Hilo, by Mr. Matt Kaneali`i- Kleinfelder, Chair. ROLL CALL: Present: Mr. Matt Kaneali`i- Kleinfelder, Chair Ms. Cindy Evans, Vice Chair Ms. Michelle M. Galimba, Member (came in later) Mr. Holeka Goro Inaba, Member (came in later) Ms. Jenn Kagiwada, Member Ms. Heather L. Kimball, Member Ms. Susan L. K. Lee Loy, Member Ms. Rebecca Villegas (came in later) Absent & Excused: Ms. Ashley L. Kierkiewicz, 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: Cindy Freitas: Bill 3 (Comm. 18) and Bill 4 (Comm. 19), in opposition. Claire Loprinci: Bill 3 (Comm. 18) and Bill 4 (Comm. 19), in opposition. Barry Albright: Bill 3 (Comm. 18), comment. Chuck Flaherty: Bill 3 (Comm. 18), comment. CHR. KANEALI`I-KLEINFELDER: I had a request to go to Resolution 34-23 due to a timing issue. Change Order As directed by the Chair and with objection from the Council Members, the of Business: following items were taken out of order: FC-1 January 4, 2023 Res. 34-23: AUTHORIZES THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE STATE OF HAWAI`I DEPARTMENT OF HUMAN SERVICES Allows for the receipt of $2 million which would be used to support new and existing programs that connect individuals and families experiencing homelessness to appropriate services and resources. Reference: Comm.47 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Motion to Approve: Mr. Inaba moved to recommend adoption of Res. 34-23. Seconded by Ms. Lee Loy. CHR. KANEALI`I-KLEINFELDER: We do have joining us today Ms. Sharon Hirota. Thank you for joining us today. Could you give us a little overview, and then we'll go to questions from the Council? (Note: At this time, Housing and Community Development Specialist Sharon Hirota came forward to address the members of the Committee.) MS. HIROTA: Thank you and a Happy New Year to all the Council Members, and thank you for allowing this resolution and the accompanying ordinance to be taken out of order. Truly do appreciate it. In late November, the County received confirmation that the State of Hawaii with its `Ohana Zone initiative was awarding an additional $2 million to our County to be used to address homelessness here on our island. This is the second tranche of funding. We initially got our first set of funding back in 2018 and have used the funds to support our emergency shelters, the predevelopment work of our Kukuiola Emergency Shelter and Assessment Center as well as setting up a family assessment center in Kona. As you all know, we issued a Request for Proposal late last year, and is now in the process of evaluating all of the responses. So once we make that decision, we would then move forward to ensure that we don't duplicate services with this additional funding, but how do we use it to complement the awards that are going to be made sometime later this year? Thank you. CHR KANEALI`I-KLEINFELDER: Thank you very much, Ms. Hirota. Council Members? Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Chair. Sharon, thanks for being here, Happy New Year. So this tranche of money, is this a funding that can be braided with some of the previous legislative actions that our Council took up to provide, you know, the $9 million for the homeless? So is this something we can braid together to provide options for our homeless? MS. HIROTA: Yes, most definitely. Page 2 FC-1 Vote on Res. 34-23: (Approved) January 4, 2023 MS. LEE LOY: Perfect. Thank you, Chair. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you, Ms. Lee Loy. Anyone else? Okay, seeing none. We have the motion on the floor, Council Members, all in favor? The motion to recommend adoption of Res. 34-23 was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Kierkiewicz — 1. Excused: None. CHR KANEALI`I-KLEINFELDER: Can we go to the accompanying bill, Bill 11: AMENDS ORDINANCE NO. 22-63, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR ENDING JUNE 30, 2023 Appropriates revenues in the State — 2022 Ohana Zone Funding account ($2 million); and appropriates the same to the 2022 `Ohana Zone Funding — Program account ($1,800,000); and 2022 `Ohana Zone Funding — Administration account ($200,000). Funds would be used to support new and existing programs that connect individuals and families experiencing homelessness to appropriate services and resources. Vote on Bill 11 (Approved) Reference: Comm.47 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Mr. Inaba moved to recommend passage of Bill 11 on first reading. Seconded by Ms. Lee Loy and was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 7. Noes: None. Absent: Committee Members Inaba and Kierkiewicz — 2. Excused: None. CHR KANEALI`I-KLEINFELDER: Can we please go to Communication 16? Page 3 FC-1 January 4, 2023 Comm. 16: REPORT OF DONATIONS RECEIVED FROM THE DANIEL R. SAYRE MEMORIAL FOUNDATION AS OF OCTOBER 2022 From Finance Director Deanna Sako, dated November 18, 2022, transmitting the above report pursuant to Resolution 468-20. Motion to Close File: Ms. Kimball moved to close file on Comm. 16. Seconded by Ms. Lee Loy. CHR. KANEALI`I-KLEINFELDER: We do have a member of the Fire Department here today. Would you like to say anything on behalf of the communication? This is for a donation list for the Sayre Foundation. (Note: At this time, Assistant Fire Chief Darwin Okinaka came forward to address the members of the Committee.) CHR KANEALI`I-KLEINFELDER: Please introduce yourself, sir. MR. OKINAKA: Good afternoon everyone. Darwin Okinaka, Assistant Fire Chief with the Hawaii Fire Department. CHR KANEALI`I-KLEINFELDER: Okay, I know you just joined us. I gave you the list. It's a very small list. That's it. MR. OKINAKA: Oh, okay. So yeah, these items, one is an extrication tool, what we call a "jaws of life tools," extrication battery power toolset for our Fire Response companies, and the second item is for foul weather gear, jackets for our Ocean Safety personnel. The Sayre Foundation previously donated the jackets, and this is the embroidery service so we can identify Ocean Safety on the jackets. So that's basically what these donations are. CHR KANEALI`I-KLEINFELDER: Thank you very much, sir. MR. OKINAKA: You're welcome. CHR KANEALI`I-KLEINFELDER: Thanks for dropping upon a spot. Council Members, any discussion on the communication? Okay, seeing none. We have a motion on the floor to close file on Communication 16, all in favor? Vote on Comm. 16: The motion to close file on Comm. 16 was carried by the Filed following voice vote: Ayes: Committee Members Evans, Galimba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 7. Noes: None. Absent: Committee Members Inaba and Kierkiewicz — 2. Excused: None. Page 4 FC-1 January 4, 2023 CHR. KANEALI`I-KLEINFELDER: And then, can we please go to Resolution 20, please? Res. 20-23: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI -YEAR AGREEMENT FOR PROFESSIONAL GRANT MANAGEMENT SERVICES FOR THE HAWAI`I FIRE DEPARTMENT Authorizes the Mayor to enter into a multi -year agreement with CNC Consulting from August 29, 2022 through November 28, 2024, with a cost not to exceed $30,000. Reference: Comm.l7 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 20-23. Seconded by Ms. Kimball. CHR KANEALI`I-KLEINFELDER: Joining us today, we have members of our Fire Department. Please introduce yourselves, give us a little background, and we'll go to questions from the Council. (Note: At this time, Assistant Fire Chief Darwin Okinaka and Deputy Corporation Counsel Dakota (Cody) Frenz came forward to address the members of the Committee.) MR. OKINAKA: So again, Darwin Okinaka, Hawaii Fire Department Assistant Chief. MS. FRENZ: Deputy Corporation Counsel Cody Frenz on behalf of Fire. CHR KANEALI`I-KLEINFELDER: Thank you for joining us. Go ahead, no problem. MR. OKINAKA: Yeah, so the background on this is we applied for assistance to Firefighter's grant. This is a multi -year grant. So CNC Consulting was awarded the initial grant -writing services, and now that we've been awarded the grant, it's just to continue their services to assist us with managing the grant. CHR KANEALI`I-KLEINFELDER: Okay, thank you. Council Members, discussion on the resolution? Okay, who went after the grant, if I can ask? MR. OKINAKA: Excuse me? CHR KANEALI`I-KLEINFELDER: Who went for the grant and did the leg work? Page 5 FC-1 January 4, 2023 MR. OKINAKA: It was a collaborative effort of myself, mainly Chief Ian Smith, my counterpart, Assistant Chief in Support Services. Actually, this grant is the third time we applied for these specific items, and these items are what we call extractors, like basically washing machines for our gear -firefighter, so heavy-duty machines to wash all our gear to remove the carcinogens and all the effects of combustion when we do enter the fire. So, huge to protect our firefighters and the safety of our personnel. CHR. KANEALI`I-KLEINFELDER: I'm sorry, the third time you went for the grant, the first time you got it, or the third time you got it? MR. OKINAKA: This is the first time we got it after three years of applying. CHR KANEALI`I-KLEINFELDER: Well done, that means you did something right. MR. OKINAKA: Yeah. CHR KANEALI`I-KLEINFELDER: Okay. MR. OKINAKA: Someone was looking after us. CHR KANEALI`I-KLEINFELDER: Beautiful. Good job. Good job, good job. MR. OKINAKA: Thanks. CHR KANEALI`I-KLEINFELDER: Okay, with that, I don't see any more comments from the Council. Thank you very much for being here. We have the motion on the floor to forward Resolution 20-23 to Council with a favorable recommendation, all in favor? Vote on Res. 20-23: The motion to recommend adoption of Res. 20-23 was (Approved) carried by the following voice vote: Ayes: Committee Members Evans, Inaba, Galimba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Kierkiewicz — 1. Excused: None. CHR KANEALI`I-KLEINFELDER: And let's go to —we have Mr. Pause here. Let's go to Bill 3, please. Page 6 FC-1 January 4, 2023 Bill 3: AMENDS ORDINANCE NO. 22-64, AS AMENDED, RELATING TO PUBLIC IMPROVEMENTS AND FINANCING THEREOF FOR THE FISCAL YEAR JULY 1, 2022 TO JUNE 30, 2023 Appropriates excess fuel tax revenues collected from 2020-2022 by establishing the following fuel tax program appropriations to the Capital Budget: Roadway Projects (Engineering) ($252,043.47); Bridge Inspection, Repair and Replacement Program (Engineering) ($177,913.04); and Local Road Improvements (Highways) ($429,956.52), for a total appropriation of $859,913.03. Reference: Comm.18 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Motion to Approve: Ms. Lee Loy moved to recommend passage of Bill 3 on first reading. Seconded by Mr. Inaba. CHR. KANEALI`I-KLEINFELDER: Joining us today, we have Mr. Pause and Ms. Sako. (Note: At this time, Finance Director Deanna Sako and Public Works Director Steve Pause came forward to address the members of the Committee.) CHR KANEALI`I-KLEINFELDER: If you could, give us a little background on the bill, and there were some questions from the public earlier today, if you could address some of those as well, as you move through the process? MS. SAKO: The first one, I believe is the one that's the excess fuel tax revenue for the biennium period 2022. We did collect more than what was actually budgeted, so we want to go ahead and appropriate that funding to the same projects that were in the original ordinance, so there are no changes there. A lot of these projects have actually been listed here for a long time, you know, just as if there's ever funding or a project we need to do, it's there available for you, so it doesn't actually mean we're going to do any of these projects. And just as a reminder to the community, before any project was to be started, an environmental assessment would have to be done; and if any archaeological sites are found, we would deal with them appropriately, as required by law. CHR KANEALI`I-KLEINFELDER: Mr. Pause. MR. PAUSE: Sure, just to follow that up, and again based on the testimony that we heard earlier, we do not have any active project on Ali`i Highway or Ali`i Parkway. So for the record, that's the current state. CHR KANEALI`I-KLEINFELDER: Thank you very much. Okay, Council Members, discussion? Ms. Evans, go ahead. Page 7 FC-1 January 4, 2023 MS. EVANS: Okay, thank you. Thank you. So, following up on that statement and listening to the testimony from people that showed up in Kona, thank you very much for coming today. The Ali`i Highway and the Kuakini Highway seem to be the concern for burials and the significant cultural area in South Kona. If you have no intention to move on it at this time but just to keep them on the list, why do we have them on the list? MS. SAKO: This was prepared by DPW (Department of Public Works) probably a long time ago, and I'm not sure why some weren't removed. That's something they can probably consider for the next biennium period, as well. MR. PAUSE: It's my understanding that the projects that are listed here were listed previously. MS. EVANS: I understand, but because it's previously listed, to me it is not a reason to add it to this list. I don't understand why those two made it on the list. I mean, it's like, what was your criteria? What level of scrutiny before you added it to this list? I mean, this list on this. MR. PAUSE: Again, it wasn't added. It was on the previous ordinance, so it was just a continuance of —and correct me if I'm wrong, I believe we have listed out the same because this is just additional funding off of the original ordinance. (Note: At this time, Deputy County Clerk Aaron Brown came forward to address the members of the Committee.) MR. BROWN: Excuse me, Chair, if you don't mind, and if the Director and the Finance Director don't mind, I might be able to because I was at Public Works before and maybe I can help with the conversation a little bit. CHR. KANEALI`I-KLEINFELDER: Yes, please, Mr. Brown. MR. BROWN: This appropriation, basically what happens is you create these ordinances to allow you to collect fuel tax for certain projects; so years ago when the original ordinance came out creating these appropriations, these same projects were listed in that original ordinance. So to be able to use the excess money that was generated, it has to be exactly as the original ordinance was stated, so after you do that, there may be ways that they could move money around. But in terms of creating the appropriation for this excess fuel tax, it has to be laid out the same way the original ordinance was created. CHR KANEALI`I-KLEINFELDER: Thank you very much. MR. BROWN: I don't know if that helps. CHR KANEALI`I-KLEINFELDER: That was very helpful, Mr. Brown. Thank you. Page 8 FC-1 January 4, 2023 MS. EVANS: So I mean, I think it's really important for the public and especially the people in Kona to understand. This is kind of a technicality that you cannot receive money if it doesn't match the original ordinance. But the issue of the priority and how it gets spent and if it gets spent on this, is not what we're talking about today. MR. BROWN: I maybe can add one more thing that might help. So excess tax, what happens when you create the original ordinances, they make a guess on how much fuel tax they're going to generate over the two-year increment. But it's just a guess, right? They don't have a crystal ball. So in this case, what was originally estimated they would receive in fuel tax, they actually collected more. They're not allowed to spend that extra money unless they come here and do what they're doing right now, creating new appropriation, to be able to access that money and then spend it. So, it's excess. MS. EVANS: So will they be able to spend the money? That's the bigger question then, will they be able to spend the money on Ali`i Highway and Kuakini Highway if we pass this? MR. BROWN: Yes, but there are a lot of things that have to happen before they even are able to spend that money; and if they're not, as the Director stated, if they're not in the process of creating a project then putting it out to bid and creating the specs and doing all the things they need to do before even being able to spend money, they wouldn't be able to spend it until all those pre -project things are created, including design. So before they even go to construction, and I think that's the concern that we're hearing, a whole bunch of stuff has to happen first. MS. EVANS: So do I come to thisI'm thinking this through in terms of process, so we're going to depend on the department's process instead of it coming back to Council, to be able to talk about how the money gets spent and it gets spent on Kuakini/Ali`i. It could be spent, but it will go through their process, which is an environmental assessment and all that. So, we as the Council will no longer be able to visit this? CHR. KANEALI`I-KLEINFELDER: Let me see, Mr. Brown, I'm going to shift it back to Administration for that response. MR. BROWN: Yes. CHR KANEALI`I-KLEINFELDER: Thank you. MS. SAKO: I think what we're trying to say is that it's been on the list for two years, and nothing's happened. Director Pause said, "There's no active project." There is no consideration. A lot of these projects are here because they're matching funds for STIP projects (State Transportation Improvement Projects), but some of these have died, I mean, they're no longer active projects. So yes, Page 9 FC-1 January 4, 2023 there's a little bit of trust here, but I think the Director has already said, "There's no active project in this area." MR. PAUSE: And I'll restate that for the record, we have no plans presently going on, the design, or EA (Environmental Assessment), or otherwise, and we have no plans in the future to pick this back up and move forward. MS. SAKO: So just to compare it, and I know we're not supposed to talk to something else, but it is later on in the agenda, so just to compare to Bill 6, that is the 2022-2024 increment that you guys are going to be voting on shortly, and all those projects that are causing concern for the community are no longer listed. I think, under the new leadership of DPW, those projects are not here, so we just wanted to clarify that. MS. EVANS: Fast forward, so we could introduce the ordinance and take those two off the ordinance that was passed? No, you can't? MS. KIMBALL: Chair, if I may? CHR. KANEALI`I-KLEINFELDER: I'm going to keep this a little bit more, and give this back to the Administration. If you need time to answer, that's fine, and Ms. Evans could follow up with you at a later time. I like your line of questioning, but just to keep the meeting moving. MS. EVANS: Thank you. CHR KANEALI`I-KLEINFELDER: If there is no answer available right now, this does have to come back to Council. MS. SAKO: I was just going to remind yes, there are two readings at Council. I just wanted to clarify again, we're amending Ordinance 22-64, and so these projects were in that ordinance, and we're just trying to distribute the dollars in the same arrangement that they were in that original ordinance. CHR KANEALI`I-KLEINFELDER: Ms. Evans? Okay. Ms. Villegas, go ahead. MS. VILLEGAS: Yeah, I just want to also thank the testifiers who expressed concerns. I share those concerns when it comes to the Ali`i Parkway. There are a tremendous number of cultural resources and iwi in that area. So I am more than willing as actually the two, Ali`i Highway that sits here and Kuakini Highway widening, are both in District 7, as is Oneo Lane, which I am hoping does get some love from this because that's a great new mauka-makai connector to alleviate some of the traffic stress on Ali`i Drive, as it connects to Kuakini Highway and a project we've waited on for years. Page 10 FC-1 January 4, 2023 I give my word that this will not I will work very closely with Finance and DPW to ensure that this doesn't somehow inadvertently go sideways to projects that I shared those concerns also with Mr. Flaherty, the confusion on whether or not Ali`i Highway is Ali`i Parkway and all those dancing words there. I also really appreciate, Deanna, your pointing out that because we then got to make a fresh ordinance with the list updated. I see on here some of this is CIP (Capital Improvement Projects), and some of this is STIP, which are all the fun things we'll get to dance with as we get back budget cycle. But thank you for editing that and removing those areas of concern or confusion moving forward. yield. CHR. KANEALI`I-KLEINFELDER: Thank you, Council Member Villegas. Council Member Inaba. MR. INABA: Thank you. I think we need to clarify, the concern is about the potential for Ali`i Parkway, and what's in this bill is Ali`i Highway. To my knowledge, that's where Ali`i Drive ends, at the Keauhou Shopping Center light, out south towards —until you get to Napo`opo`o, out that way. I don't think what's in this bill right now is referring to new construction. Is that right, Director Pause, if this is road improvements to an existing highway? MR. PAUSE: Yes, Council Member, that's my understanding. MR. INABA: Okay, very good. With that then, perhaps one last question as to the timeframe of this bill applies to the fundsI mean, being that we're seeing another bill today for fuel tax, why then did we have monies like this appropriated to old projects rather than going forward to the new projects? Is it just because it was from that last fiscal year? MS. SAKO: Right. MR. INABA: Okay. MS. SAKO: It's from this biennium period, the excess funds are related to. MR. INABA: Okay. All right, got it. Thank you so much. Yeah, thank you to our testifiers in Kona. Based on the department's representation as to what the Ali`i Highway is, that's the existing highway, not the Ali`i Parkway, which has been a heavily contested issue in our community. Just wanted to point that out. Thank you, Chair. I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Council Member Inaba. Council Member Kimball. MS. KIMBALL: Yeah, thank you. I just want to make sure that we're all clear on the process here. Every biennium we create a bucket of where these fuel tax Page 11 FC-1 January 4, 2023 funds can go, and we define those locations in an original ordinance. At some point and time, we might find out that there's going to be more in the bucket than we thought. What we're doing here is we're saying, "Okay, we're adjusting the volume in the bucket," but we've already decided through this previous ordinance where it could potentially go. The director said that some of these projects that were in the bucket originally are not going to be used. When we do a new ordinance for the next biennium, that's when we will have the say in the projects that can and cannot be on the list. What we're really just doing here is we're changing the figure. We're not changing the bucket itself that the money was created by. Thank you, Chair. I yield. MR. PAUSE: Yeah, if I could add to that, too? One of the other features here is that the money goes under Local Road Improvements, and you've heard me talk about my desire to pave more, the allocation continues as the original ordinance for the monies that get spent based on the districts. That's another part that kind of continues on from the original ordinance. CHR. KANEALI`I-KLEINFELDER: Okay. Thank you, Council Member Kimball. MS. EVANS: Chair? CHR KANEALI`I-KLEINFELDER: Council Member Evans, go ahead MS. EVANS: Is it possible to put in the committee report what they said about the highways, that they wouldn't be spending the money on Kuakini and Ali`i? CHR KANEALI`I-KLEINFELDER: Yes. MS. EVANS: Okay, thank you. CHR KANEALI`I-KLEINFELDER: Okay, Council Member Lee Loy. MS. LEE LOY: Thank you, Chair. I just want —maybe get the department, or Deanna, you know, we have the local road improvement and there are districts that are not Council districts. They're? MS. SAKO: Geographic districts. MS. LEE LOY: Road districts. Maybe even for our future, when we do the next one, that it correlates somehow to respective Council districts or representative districts, something that we can wrap our arms around because kind of the road districts are really kind of all over the place. MS. SAKO: So realistically, because Council districts can change, I think that's why we have always used the geographical districts, so that community, the Puna area, will continue to get that funding for roads, or the Kona area will continue to Page 12 FC-1 January 4, 2023 get that funding for roads, rather than if a Council line was to change, then it would be difficult, especially on some of the older years to go back and try and determine which Council district that was in. MS. LEE LOY: Got it. The continuity of the road district rather than a political district. MR. PAUSE: I will add, and I know in the past I've shared with you, that we're trying to be a bit more transparent with paving especially, right, and I think I've mentioned to you that we've challenged our Highways Division Chief to pave, pave, pave this year. There is a website available, through the DPW website, where you can see how much road we've paved, what we're planning on paving, and what we've already completed. I'm pretty sure I asked, in anticipation of this question a few months back, I think I asked Asia to put Council districts as an overlay, so if you go to the website, you can see the roads that are planned to be paved and what's already been paved. I believe there's an overlay, not just for roads, but for the actual Council districts, so take a look. If I'm wrong, we can certainly change, too. MS. LEE LOY: Great. Thanks, guys. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you, Council Member Lee Loy. Any further discussion? Okay, seeing none. Thank you very much, you both. The testifiers today raised some good points, and I believe today's discussion was helpful. Mr. Clerk, I don't know how to do this correctly, but if I can address the testifiers with a question? MR. BROWN: I think you could make a statement. We would —we don't — conversation back and forth would be probably not looked upon very well. If you want to make a statement real quicklyI mean, we don't want to get into a back -and -forth conversation, I think. CHR KANEALI`I-KLEINFELDER: Correct. A yes or no question? MR. BROWN: I think that would be okay. Chair Kimball has confirmed that that's okay in our Rules. So yes, I think that would be okay. CHR KANEALI`I-KLEINFELDER: Just fairly straightforward to our testifiers in Kona, do you feel that we've adequately answered your questions regarding your testimony today? Because of our rules, it's got to be more of a yes or no answer. MS. LOPRINCL Yeah, I would say yes you did, and I appreciate all of you and your understanding. But a little bit of a "no" because we're still on the trust thing, and it's really hard to trust when we've been fighting so hard for so many years. So we would like to see it all cleaned up all the way. Page 13 FC-1 January 4, 2023 CHR. KANEALI`I-KLEINFELDER: Okay, mahalo. Thank you. MS. LOPRINCL Mahalo. CHR KANEALI`I-KLEINFELDER: Okay, I have no further questions. I think the Council Members asked very good questions today, and thank you to our Administration for providing such good answers and being helpful. With that, we have the motion on the floor to forward Bill 3 to Council with a favorable recommendation, all in favor? Vote on Bill 3: The motion to recommend passage of Bill 3 on first reading (Approved) was carried by the following voice vote: Ayes: Committee Members Evans, Inaba, Galimba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Kierkiewicz — 1. Excused: None. CHR KANEALI`I-KLEINFELDER: Can we please proceed to Bill 4? Bill 4: AMENDING ORDINANCE NO. 22-64, AS AMENDED, RELATING TO PUBLIC IMPROVEMENTS AND FINANCING THEREOF FOR THE FISCAL YEAR DULY 1. 2022 TO JUNE 30. 2023 Reappropriates lapsed fuel tax funds from prior fiscal years by establishing the following fuel tax program appropriations to the Capital Budget: Roadway Projects (Engineering) ($1,288,729.07); Bridge Inspection, Repair and Replacement Program (Engineering) ($15,892.03); and Local Road Improvements (Highways) ($214,385.57), for a total appropriation of $1,519,006.67. Reference: Comm.19 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Motion to Approve: Ms. Lee Loy moved to recommend passage of Bill 4 on first reading. Seconded by Mr. Inaba. CHR KANEALI`I-KLEINFELDER: Council Members, discussion on Bill 4? Okay, seeing none. I have a follow-up question for Administration. (Note: At this time, Finance Director Deanna Sako and Public Works Director Steve Pause came forward to address the members of the Committee.) CHR KANEALI`I-KLEINFELDER: Ms. Evans made me think a little. You know, we have the projects on your RIP (Request Improvement Projects) list, and Page 14 FC-1 January 4, 2023 we're looking at lapsed funds, how did these projects surface amongst all the others? Are these referring back to past ordinances? Are these hand-picked by the Administration with this funding? It's a short list. We've got a lot of roads in. MR. PAUSE: Yes, I'll give my understanding, and I'm sure Director Sako will correct me if I'm wrong. As I understand it, it's kind of a clean-up. It's just been money that has lapsed, and I think it goes back to 1996, and it comes from whether it wasn't spent. The funds weren't spent in the original timeframe. In some cases, money was encumbered —or funding was encumbered for construction contracts, and the numbers came out less, so there was leftover. So I believe, as I understand it, this is a process that we should probably be doing on a yearly basis or every two years versus this is a bit more detailed. MS. SAKO: So we do have to clean it up every two to three years as the ordinances expire. I believe these are newer projects because the older projects have been completed or are no longer in existence. But you will see that we track every biennium period. It's very detailed, including the one penny that we are reappropriating for the period 2018-2020. So in case anyone is curious, we don't drop anything. The part that is maintained throughout, from year-to-year, is the Local Road Improvement, so by district -by -district, as well as the categories between Roadway Projects, Bridge Inspection, and Local Road Improvements. But I think this year we did list some newer projects, they may have been on some of the older ones as well, but they're projects that still have to be done rather than the old projects that have already been completed. CHR. KANEALI`I-KLEINFELDER: Okay. Then back to that main question, why these five projects? I want to clarify too, we have five projects down here, on your Road Improvement Project that are listed, and I'm looking at that $1.2 million, yeah. But underneath of that is ADA (Americans with Disabilities Act) curb, bicycle pedestrian, and roadway capacity. Are those projects for the listed bullet points below or those projects and all of those bullet points? MR. PAUSE: It's all of the above, as you say. Specific projects, we could at least get our arms around; and if you ask me what is the status of each one of these, I could speak in more detail, but they're existing or they're real projects. I'll tell you this, and we're jumping ahead to Bill 6 as well, a lot of the funding on the roadway projects is really for front-end loading. It's getting projects ready to do. It's less amount of money, but it's critical. It takes care of the environmental assessment. It takes care of the design concepts. It allows us to engage the community to talk about the projects in advance. It's everything short of going out to bid. So, a lot of the money that's funded here is really to get going on that and make the projects ready to deliver. The ones that you see here would be the priorities. Page 15 FC-1 January 4, 2023 CHR. KANEALI`I-KLEINFELDER: These are priorities —as listed by the CIP budget or by the Administration? MS. SAKO: By the Administration, and that will eventually end up in the STIP list, which means we'll get federal funding. So it's really to help us maximize our federal funding, as well. CHR KANEALI`I-KLEINFELDER: Okay. Okay, I'm thinking about our testifier from Puna, who came and asked for something that we've been asking for a long time. We have different pots of money that are available to help in some of those areas, but I don't see any projects for the Puna district or anything addressing that. There may be funding coming from the State, but that's a whole separate deal. MS. SAKO: So just to clarify because I did clarify with the Director, but that roundabout concern CHR KANEALI`I-KLEINFELDER: With the State. MS. SAKO: On 130 (Highway), it's not ours. CHR KANEALI`I-KLEINFELDER: It is not. MS. SAKO: It was built by the State, and we cannot speak to why they did that. CHR KANEALI`I-KLEINFELDER: I would have to agree. I didn't want to bring up the roundabout. Highway 130 is the State highway, so is Highway 11, and the roundabouts are all State designed, State engineering, and State built. Regardless, he did have a good point, which was we need better ins and outs in Puna, and I know there's different people addressing that, but it alsoI think this is going fall to the County responsibility because it won't be a State highway. As far as I can tell, it's being built to get people out of Puna. MR. PAUSE: Right, and you and I have confirmed a little bit, we certainly need to do more work on the whole concept of Puna connectivity and what that means. You know, we've got a couple of areas that we're working with the communities, but it's going to definitely need more work. CHR KANEALI`I-KLEINFELDER: Okay. MR. PAUSE: More collaboration. CHR KANEALI`I-KLEINFELDER: One day, I hope to see one of these bills in here with Puna connectivity on it. It's going to be a beautiful thing Okay. Sorry, thank you for the latitude, Council. Seeing no discussion. Thank you very much, Ms. Sako and Mr. Pause. We have the motion on the floor to forward Bill 4 to Council with a favorable recommendation, all in favor? Page 16 FC-1 January 4, 2023 Vote on Bill 4: The motion to recommend passage of Bill 4 on first reading (Approved) was carried by the following voice vote: Ayes: Committee Members Evans, Inaba, Galimba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Kierkiewicz — 1. Excused: None. CHR. KANEALI`I-KLEINFELDER: Can we please go to Bill 5? Bill 5: AMENDS ORDINANCE NO. 22-64, AS AMENDED, RELATING TO PUBLIC IMPROVEMENTS AND FINANCING THEREOF FOR THE FISCAL YEAR DULY 1, 2022 TO JUNE 30, 2023 Adds the Public Works Kalanianaole Avenue Reconstruction - Private project ($100,000) to the Capital Budget. Funds for this project shall be provided from Private Contributions. Reference: Comm.20 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Motion to Approve: Ms. Galimba moved to recommend the passage of Bill 5 on first reading. Seconded by Ms. Lee Loy. (Note: At this time, Public Works Director Steve Pause came forward to address the members of the Committee.) CHR KANEALI`I-KLEINFELDER: Council Members, discussion. It's pretty straightforward. Council Member Lee Loy, go ahead because this is your district. Okay, Council Member, go ahead. CHR. INABA: It's not so straightforward to me that's why —Director Pause, this $100,000I know you folks opened up Kalanianaole to the great pleasure of Ms. Lee Loy and the Keaukaha community. Can you explain what this $100,000 is? MR. PAUSE: Absolutely. CHR. INABA: I want everybody to know on this one, the project. MR. PAUSE: Absolutely, absolutely. So once upon a time, a similar bill came forward, specifically with HELCO (Hawaiian Electric Light Company), and it was their contribution for the additional work that we would be performing to protect their fuel line beneath Kalanianaole. This is similar. With that, we struck a Memorandum of Understanding, working with Corp. Counsel, with HELLO. We did the same with Hawaii Gas, so that's what this is. We expended funds, Page 17 FC-1 January 4, 2023 per our agreement with them, to protect their pipeline during the course of construction, specifically using control low -strength materials or concrete to protect their pipe. So, this is the avenue to allow them to reimburse us for that additional work we did. MR. INABA: Director Sako. MS. SAKO: The work's been done. We went to actually move the cost to the Hawaii Gas account, which we realized didn't exist, only the HELCO one had been created. So, we're not going to tear up the road again. The work is done. I know that's probably what —so it's just for our accounting purposes, so we can track that Hawaii Gas really paid us the money that's owed to us. MR. INABA: Thank you so much; and thank you for getting the road open, Director. Chair, I yield. CHR. KANEALI`I-KLEINFELDER: Thank you, Council Member Inaba. Okay, any other discussion from the Council? Okay, seeing none. We have the motion on the floor to forward Bill 5 to Council with a favorable recommendation, all in favor? Vote on Bill 5: The motion to recommend passage of Bill 5 on first reading (Approved) was carried by the following voice vote: Ayes: Committee Members Evans, Inaba, Galimba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Kierkiewicz — 1. Excused: None. CHR KANEALI`I-KLEINFELDER: Bill 6, please. Bill 6: AMENDS ORDINANCE NO. 22-64, AS AMENDED, RELATING TO PUBLIC IMPROVEMENTS AND FINANCING THEREOF FOR THE FISCAL YEAR DULY 1. 2022 TO JUNE 30. 2023 Appropriates the eighth increment of the fuel tax revenues established by Resolution No. 504-08 and collected from 2022-2024 to the following programs: Roadway Projects - Engineering ($2 million); Bridge Inspection, Repair and Replacement Program - Engineering ($1.4 million); and Local Road Improvements - Highway ($3.4 million), for a total appropriation of $6.8 million. Reference: Comm.21 Intr. by: Mr. Kaneali`i- Kleinfelder (B/R) Page 18 FC-1 January 4, 2023 Vote on Bill 6: Ms. Galimba moved to recommend passage of Bill 6 (Approved) on first reading. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Evans, Inaba, Galimba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Kierkiewicz — 1. Excused: None. CHR. KANEALI`I-KLEINFELDER: Can we head up, please, to the top of the agenda and work our way back down? MR. PAUSE: Thank you. CHR KANEALI`I-KLEINFELDER: Thank you very much, Mr. Pause and Ms. Sako. 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. (Items in this category were taken up previously, out of order.) Comm. 12: REPORT OF FUND TRANSFERS AUTHORIZED: NOVEMBER 1 — 15, 2022 From Controller Kay Oshiro, dated November 28, 2022. Vote on Comm. 12: Ms. Lee Loy moved to close file on Comm. 12. Filed Seconded by Mr. Inaba and carried by the following voice vote: Ayes: Committee Members Evans, Inaba, Galimba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Kierkiewicz — 1. Excused: None. Comm. 12. 1: REPORT OF FUND TRANSFERS AUTHORIZED: NOVEMBER 16 — 30, 2022 From Controller Kay Oshiro, dated December 7, 2022. Page 19 FC-1 Vote on Comm. 12.1: Filed Ms. Lee Loy moved to close file on Comm. 12.1. Seconded by Mr. Inaba and carried by the following voice vote: Ayes: Committee Members Evans, Inaba, Galimba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Kierkiewicz — 1. Excused: None. January 4, 2023 CHR. KANEALI`I-KLEINFELDER: Communication 13, please. Comm. 13: REPORT OF CHANGE ORDERS AUTHORIZED: NOVEMBER 1 — 15, 2022 From Finance Director Deanna Sako, dated November 17, 2022, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Vote on Comm. 13: Ms. Lee Loy moved to close file on Comm. 13. Filed Seconded by Mr. Inaba and carried by the following voice vote: Ayes: Committee Members Evans, Inaba, Galimba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Kierkiewicz — 1. Excused: None. CHR KANEALI`I-KLEINFELDER: Communication 13.1. Comm. 13. 1: REPORT OF CHANGE ORDERS AUTHORIZED: NOVEMBER 16 — 30, 2022 From Finance Director Deanna Sako, dated December 6, 2022, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Motion to Close File: Ms. Lee Loy moved to close file on Comm. 13.1. Seconded by Mr. Inaba. CHR KANEALI`I-KLEINFELDER: Council Members, discussion on Communication 13.1. Ms. Sako, I do have a question for you, seeing no other lights on. (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) CHR KANEALI`I-KLEINFELDER: Towards the bottom, it says "C009779" for the ERAP program. The Emergency Rental Assistance Program? Page 20 FC-1 January 4, 2023 MS. SAKO: Yes. CHR. KANEALI`I-KLEINFELDER: Is this the wrap-up from that or just leftover funding that needs to be expended? MS. SAKO: We still have federal funding coming directly to us that we are expending for this project. CHR KANEALI`I-KLEINFELDER: So we're going to continue the Emergency Rental Assistance Program? MS. SAKO: Until the funds round out, yes. CHR KANEALI`I-KLEINFELDER: Okay. And then, is this the $5.5 million that is listed here? MS. SAKO: That was the original contract. I think this particular change order was for $755,000, and it did come in two increments, so this may be wrapping up the first one. We can get more information if needed, but I believe they are just trying to spend down all the federal funding. CHR KANEALI`I-KLEINFELDER: Okay. I'm going to take it back to a bill we reappropriated, a fairly large amount of money from the federal government for this particular program, but there was some discussion about how we're actually going to expend it. MS. SAKO: Yeah, so this is how they're spending it, and we did have the first tranche and the second tranche, and there were also a lot of spend -down requirements, but I believe we still have more money to spend. CHR KANEALI`I-KLEINFELDER: Okay, that's good. Okay, thank you, Ms. Sako. Any other questions, Council Members? Seeing none. Motion on the floor is to close file on Communication 13.1, all in favor? Vote on Comm. 13.1: The motion to close file on Comm. 13.1 was carried Filed by the following voice vote: Ayes: Committee Members Evans, Inaba, Galimba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Kierkiewicz — 1. Excused: None. CHR KANEALI`I-KLEINFELDER: Communication 14. Page 21 FC-1 January 4, 2023 Comm. 14: REVISED MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED JUNE 30, 2022 From Finance Director Deanna Sako, dated December 1, 2022, transmitting the above report pursuant to Hawaii County Charter Section 6-6.3 (h). Vote on Comm. 14: Ms. Lee Loy moved to close file on Comm. 14. Filed Seconded by Mr. Inaba and carried by the following voice vote: Ayes: Committee Members Evans, Inaba, Galimba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Kierkiewicz — 1. Excused: None. CHR. KANEALI`I-KLEINFELDER: Communication 14.1, please. Comm. 14. 1: MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED JULY 31, 2022 From Finance Director Deanna Sako, dated December 15, 2022, transmitting the above report pursuant to Hawaii County Charter Section 6-6.3 (h). Vote on Comm. 14. 1: Ms. Lee Loy moved to close file on Comm. 14.1. Filed Seconded by Mr. Inaba and carried by the following voice vote: Ayes: Committee Members Evans, Inaba, Galimba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Kierkiewicz — 1. Excused: None. CHR KANEALI`I-KLEINFELDER: Communication 14.2, please. Comm. 14.2: MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED AUGUST 31, 2022 From Finance Director Deanna Sako, dated December 15, 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. 14.2. Seconded by Mr. Inaba. CHR KANEALI`I-KLEINFELDER: Any discussion? Council Member Lee Loy, go ahead. Page 22 FC-1 January 4, 2023 MS. LEE LOY: Thank you, Chair. Deanna, real quick. (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. LEE LOY: This is kind of the checkbook balance from, I guess we're looking at August. I'm kind of just asking out loud and maybe hoping for forecasting of our budget, how do we get them —and I know a lot of work goes into that, and all the department has to put in all their information. Is there like some kind of software upgrade, something that the departments where you guys can use so that we can get a more current checkbook balance? Help me with that. MS. SAKO: So the information in the system is fairly up to date, but there are still distributions that have to be done. So as soon as we did the June 30 close, they started focusing on the monthly close, is to catch up. However, in between, HI-EMA (Hawai`i Emergency Management Agency) asked us to hurry up and get them reports from some of our 2014 and 2018 eruption information, which we did. You know, come to find out, just to give a shoutout to staff, that HI-EMA had changed the numbers, and we had to recreate everything for them again. You know, our team gets dealt with a lot of different things. They are back, and we should be fully staffed again next week, after the holiday vacations, and they'll resume catching up on all of these months. MS. LEE LOY: Yeah, just asking out loud if this is some kind of upgrades to our budgeting software. MS. SAKO: So we are working on our whole ERP (Enterprise Resource Planning), enterprise system, which is our new accounting software, and we are in the process of evaluating the RFPs that were submitted. It will not help for this year's budget, but hopefully by the next cycle. MS. LEE LOY: Thanks, Deanna. Thank you, Chair. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you, Council Member Lee Loy. Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. Director Sako, thanks. This is a minor, silly, little thing, but I did have a constituent ask me about this. You have in here $20,000 adjusted estimate for Aunt Sally's hale, do you know if that is actually going to be open this year because my understanding is that it's closed at this time. MS. SAKO: The hope is just to have it open. The hope has been to have it open for quite some time now. MS. KAGIWADA: Right. Page 23 FC-1 January 4, 2023 MS. SAKO: However, there's been a delay in getting Civil Defense back into the EOC (Emergency Operation Center). So that project, there's one piece of it left, it's in redesign for the beam, to strengthen it, and then they should be moving back. We were hopeful to get them there by the end of the year, but clearly that isn't happening. So hopefully by the beginning of hurricane season, they will be back in their home again. MS. KAGIWADA: Okay. So we're just waiting on that project to finish up and the move to happen? MS. SAKO: Yeah, it's primarily done, but there's one piece that was discovered during construction that they're trying to fix. MS. KAGIWADA: Okay. Thank you, Director. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you, Council Member Kagiwada. Council Member Kimball. MS. KIMBALL: Yeah, thank you; and thank you, Director Sako, for being here. I hope you don't mind me sharing a little bit of what I recall of a conversation that we had about the new budgeting software, and maybe getting reports in a more timely manner. One of the things that you recommended to me was that Finance maybe not be able to provide this detailed report, but maybe we could get a level higher overview if we specified specifically what we needed. So I'm just going to put that out here in this public forum for people to kind of ruminate it on. Maybe I'll put a communication forward, that we can talk about, what we might like to see in the higher level. It might reflect in our conversation correctly. MS. SAKO: Yes, that's correct. Yes, we're willing to run whatever we can. MS. KIMBALL: Okay, so let's look forward to a conversation about taking this Budget Review, maybe digesting it a little bit to higher -level numbers and getting that on a more timely basis, if that works for everyone. MS. SAKO: So, I think we did mention that we can run it to the object whole level. I think the level of detail was that we do not track it by the individual line items in the budget. MS. KIMBALL: Right. Good. I yield, Chair. Thanks. CHR KANEALI`I-KLEINFELDER: Thank you, Council Member Kimball. Council Member Lee Loy. MS. LEE LOY: And then, a follow-up to that. Thank you, Ms. Kimball, for that. Deanna, I'm just trying to balance. Earlier in the agenda, when we had Change Orders, we had Transfer of Funds, but I'm looking at a checkbook balance from a Page 24 FC-1 January 4, 2023 couple of months back. So yeah, maybe if there was something higher level so that we could MS. SAKO: So just to clarify, you know, when you talk about checkbook balance, certain item numbers are not going to change; fund balance, things like that are not going to change. It's just where they are on their spending. By the time we're discussing the budget, newer Monthly Budget Status Reports, will be out and will be current. So, that is there. Also, just for the newer members, this report is prepared at the legal level of the budget, so any other reports would be to help assist in your guys evaluation. MS. LEE LOY: And then, yeah, maybe kind of $30,000 for elevation rather than weigh down at this granular level. I mean, it's great, especially when you know how to read it. I mean, I know exactly what page to turn to, so I know what I'm looking for. It's kind of understanding that as we make sure there are enough funds on the various accounts. Thank you. Thank you, Chair. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you, Council Member Lee Loy. Ms. Sako, do you think that a bi-monthlyam I saying that right? MS. SAKO: Every other month? CHR KANEALI`I-KLEINFELDER: Every other month report, would it offer the same kind of glance at our budget for the Council Members and relieve some of the load on staff, or as far as having to go monthly? I could see where it could be it could be both ways and relieve some of the load on staff, as far as having to go monthly. I could see where it could go both ways. MS. SAKO: Yeah, it's probably the same amount of work to get posted. It would just be less printing out of the actual reports. Right now, this is what's required by the Charter, so we continue to provide it. CHR KANEALI`I-KLEINFELDER: Okay. Well, I look forward to future discussions, thank you. Okay, thank you. Seeing no further discussion from the Council. We have the motion on the floor to close file on Communication 14.2 thank you very much, Ms. Sako. Motion is on the floor, Council Members, all in favor? Page 25 FC-1 January 4, 2023 Vote on Comm. 14.2: The motion to close file on Comm. 14.2 was carried Filed by the following voice vote: Ayes: Committee Members Evans, Inaba, Galimba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Kierkiewicz — 1. Excused: None. CHR. KANEALI`I-KLEINFELDER: Communication 15. Comm. 15: SUPPLEMENTAL SUMMARY OF BONDED INDEBTEDNESS AS OF NOVEMBER 1, 2022 From Finance Director Deanna S. Sako, dated November 22, 2022, transmitting the above report as required per the issuance of $28,500,000 in general obligation bonds on October 27, 2022 and November 1, 2022. Motion to Close File: Ms. Galimba moved to close file on Comm. 15. Seconded by Mr. Inaba. CHR KANEALI`I-KLEINFELDER: Council Members, discussion on the communication? Council Member Evans, go ahead. MS. EVANS: Thank you. I'm not up quite up to speed yet on process, but this is saying we've issued $28.5 million in General Obligation Bonds, and I'm curious to know what that's going to be spent on. The only reason I bring it up is when you look at the supporting schedules that you provided us, it's pretty telling when —in 2016, it was $161 million; and 2017, $112 (million); and 2020, $70 (million); and today we're talking about $28 (million). Do you have like background information on what that $28 million is for? (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: Yes, so just to clarify, these are actually bond anticipation notes, so this is short-term borrowing until we actually issue bonds again. So at the County of Hawaii, we do things a little differently in order to help make it easier to comply with IRS' (Internal Revenue Service) requirements and Arbitron standards. So as the Council approves bond authorizations, it's approved for those projects, and that's what we use to allot the funds and encumber the funds. Then as the department spend it, because it's especially on the larger projects, they can take anywhere from one to three to five years to actually spend the money. We will borrow as the money is needed. So this funding, the $28.5 million that we borrowed for bond anticipation notes, is for the projects that have already been previously approved by Council; and as the Page 26 FC-1 January 4, 2023 departments spend it, we just watch our cash flow, and then we go ahead and borrow it. And then these short-term anticipation notes will be repaid with General Obligation Bonds, probably issued sometime between the summer and fall of this year. MS. EVANS: Thank you. CHR. KANEALI`I-KLEINFELDER: Thank you, Council Member Evans. Any further discussion? Okay, seeing none. We have a motion on the floor to close file on Communication 15. Council Members, all in favor? Vote on Comm. 15: The motion to close file on Comm. 15 was carried Filed by the following voice vote: Ayes: Committee Members Evans, Inaba, Galimba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Kierkiewicz — 1. Excused: None. CHR KANEALI`I-KLEINFELDER: That brings us to Resolution 21-23. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. (Items in this category were taken up previously, out of order.) Res. 21-23: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM THE DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT Transfers $2,500 from the Liquor Control/Public Programs account; and credits to the Sundry Refund account, to complete the return of prior year Contingency Relief funds from the Department of Liquor Control. Reference: Comm.22 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 21-23. Seconded by Mr. Inaba. CHR KANEALI`I-KLEINFELDER: Council Members, discussion on the resolution? Council Member Kimball, go ahead. MS. KIMBALL: Yeah, this is a process question. So, new members, you will find that even after two years, there are things you've never seen before, and want to ask questions about. I'm sure that the six years and four yearsI'm just Page 27 FC-1 January 4, 2023 curious, when we have a refund of a contingency relief, how come it goes into the General Fund and not back into the Contingency Relief Fund? Thank you. (Note: At this time, Finance Director came forward to address the members of the Committee.) MS. SAKO: So this was actually something that wasn't completed last year. So the money was given to the Department of Liquor. They were not able to get everything completed. I don't remember what all the hold-ups were. So that money lapsed and went into the Liquor Fund Balance or the portion designated for the Liquor Department. There are strict rules on what that fund balance can hold. So if it had been in any other department, it would have lapsed into General Fund Balance because the year had been completed. So, we're just moving it back into the General Fund so that Liquor's fund balance will be whole and intact, as it was originally intended. MS. KIMBALL: So if it was a situation where the funds weren't used within the same fiscal year the Contingency Fund would —grantee then it would go back to the Contingency. MS. SAKO: Then it could go back. MS. KIMBALL: Thank you for that clarification. I appreciate it. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you, Council Member Kimball. Any further discussion? Hearing none. Motion is on the floor to forward Resolution 21-23 to Council with a favorable recommendation, all in favor? Vote on Res. 21-23: The motion to recommend adoption of Res. 21-23 was (Approved) carried by the following voice vote: Ayes: Committee Members Evans, Inaba, Galimba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Kierkiewicz — 1. Excused: None. CHR KANEALI`I-KLEINFELDER: Mr. Clerk, I believe that brings us to our last resolution. Page 28 FC-1 January 4, 2023 Res. 35-23: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI -YEAR LEASE OF ONE SEWER CLEANING TRUCK FOR THE DEPARTMENT OF ENVIRONMENTAL MANAGEMENT Authorizes the Mayor to enter into a five-year lease agreement with an approximate monthly cost of $9,000. Reference: Comm.48 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 35-23. Seconded by Mr. Inaba. CHR. KANEALI`I-KLEINFELDER: Council Members, discussion. Council Member Evans, you have the floor. MS. EVANS: Yeah, just a quick question. When you have something like this, which is $9,000 per month for 60 months, is there an analysis of what it would cost to actually buy one? (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: All of our leases are financed -to -own, so we do end up owning it at the end; and for some of the smaller funds that might not be able to afford it outright on a cash purchase, then we just buy it over five years, so basically like a car payment. MS. EVANS: Okay. All right, thank you. CHR KANEALI`I-KLEINFELDER: Thank you, Council Member Evans. Discussion? Ms. Beck, are you online? (Note: At this time, Wastewater Division Chief Dora Beck came forward to address the members of the Committee.) MS. BECK: Yes, good afternoon. This is Dora Beck. CHR KANEALI`I-KLEINFELDER: Okay, thank you or joining us. Happy New Year. MS. BECK: Happy New Year. CHR KANEALI`I-KLEINFELDER: Simple question, do we have one of these trucks with our Wastewater Division or within the Department of Environmental Management already? Page 29 FC-1 January 4, 2023 MS. BECK: Yeah, we have one of these trucks on the eastside, east operations. CHR. KANEALI`I-KLEINFELDER: Is this for the westside operations? MS. BECK: For the westside operations, yeah. CHR KANEALI`I-KLEINFELDER: Do you know often they utilize the truck on the east side? MS. BECK: They utilize it, you know, I would say at least once or twice a month. It's used for routine flushing and cleaning of the sewer lines. CHR KANEALI`I-KLEINFELDER: So we use it once or twice a month? MS. BECK: Depending on the availability of staff. I mean, the preference is several times a week. CHR KANEALI`I-KLEINFELDER: I mean, you want for east and west? MS. BECK: Right. CHR KANEALI`I-KLEINFELDER: Given the usage. MS. BECK: Right now, the westside truck is down and the tank is in disrepair, so they're borrowing from the east side. CHR KANEALI`I-KLEINFELDER: Has that borrowing caused any delay in service from the County? MS. BECK: It depends on the schedule. It can. CHR KANEALI`I-KLEINFELDER: Thank you. Okay. Thank you, Ms. Beck. Thank you for joining us today. Appreciate it. MS. BECK: You're welcome. CHR KANEALI`I-KLEINFELDER: Okay, Council Members, the motion is on the floor to forward Resolution 35-23 to Council with a favorable recommendation. All in favor? Page 30 FC-1 January 4, 2023 Vote on Res. 35-23: The motion to recommend adoption of Res. 35-23 was (Approvedcarried by the following roll call vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kimball, Lee Loy, and Villegas — 7. Noes: Chair Kaneali`i-Kleinfelder — 1. Absent: Committee Member Kierkiewicz — 1. Excused: None. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. (Items in this category were taken up previously, out of order.) CHR. KANEALI`I-KLEINFELDER: That does bring us to the end of our agenda. ADJOURN- There being no further business, at 2:30 p.m., Mr. Inaba moved to adjourn MENT: the meeting. Seconded by Kagiwada and carried by the following voice vote: Ayes: Committee Members Evans, Inaba, Galimba, Kagiwada, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Kierkiewicz — 1. Excused: None. CHR. KANEALI`I-KLEINFELDER: This brings us to the end of our agenda. We are adjourned. Approved: Mr. Matt Kaneah' i- leinfelder, Ch i Finance Committee (Date MK/na Page 31