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HomeMy WebLinkAboutMIN LAAC 2023/03/07 (2022-2024) Committee on Legislative Approvals and Acquisitions 5th Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii March 7, 2023 CALL TO The regular meeting of the Committee on Legislative Approvals and Acquisitions ORDER: was called to order at 1:00 p.m., in the Council Chambers, Hilo, by Mr. Holeka Goro Inaba, Chair. ROLL CALL: Present: Mr. Holeka Goro Inaba, Chair Ms. Michelle M. Galimba, Vice Chair Ms. Cindy Evans, Member Ms. Jenn Kagiwada, Member Mr. Matt Kaneali`i-Kleinfelder, Member (came in later) Ms. Ashley L. Kierkiewicz, Member Ms. Heather L. Kimball, Member Ms. Susan L. K. Lee Loy, Member Ms. Rebecca Villegas, Member (via videoconference from Kona) 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: Ho`omalu Phillips: Res. 60-23 (Comm. 122), in support. (representing Ka `Umeke K5'eo Public Charter School) Mahealani Lee: Res. 60-23 (Comm. 122), in support. (representing Ka `Umeke K5'eo Public Charter School) Kamalani Holomalia: Res. 60-23 (Comm. 122), in support. (representing Ka `Umeke K5'eo Public Charter School) Jeff Gilbreath: Res. 61-23 (Comm. 123), in support. Claudia Rohr: Res. 60-23 (Comm. 122), in support. LAAC-5 March 7,2023 Lizanne Caravalho: Res. 61-23 (Comm. 123), in opposition. (representing 808 Homeless Task Force) Regina Weller: Res. 61-23 (Comm. 123), in opposition. (representing 808 Homeless Task Force) JoAnna Quitan Kern: Res. 60-23 (Comm. 122), in support. Blake McNaughton: Res. 60-23 (Comm. 122), in support. (representing Hui Ho`oleimalu6) Brandee Menino: Res. 61-23 (Comm. 123), in support. (representing Hope Services Hawaii, Inc.) Natasha Ala: Res. 61-23 (Comm. 123), comment and (representing Hawaii Island in support and comment. Community Health Center) Kainalu Steward: Res. 60-23 (Comm. 122), in support. (representing Hui Ho`oleimalu6) Kamala Anthony: Res. 60-23 (Comm. 122), in support. (representing Hui Ho`oleimalu6) Andi Pawasarat-Losatu: Res. 61-23 (Comm. 123), in support. (representing Badge House, Inc.) Anela Burgess: Res. 60-23 (Comm. 122), in support. (representing Hui Ho`oleimalu6) Shae Kamakaala: Res. 60-23 (Comm. 122), in support. (representing Hawaii Land Trust) Donnalyn Kalei: Res. 61-23 (Comm. 123), comment. (representing Lokahi Treatment Center—Board Member) Renae Mathson: Res. 61-23 (Comm. 123), in support. (representing Project Vision Hawaii) Page 2 LAAC-5 March 7,2023 Carlos Palma: Res. 61-23 (Comm. 123), in support. (representing Hawaii Island Home for Recovery, Inc.) Sandy Schuffler: Res. 60-23 (Comm. 122), in support. CHR. INABA: Thank you very much. Then let us move on with the first order of business, please, Mr. Clerk. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 60-23: AUTHORIZES THE DIRECTOR OF FINANCE TO ENTER INTO NEGOTIATIONS FOR THE ACQUISITION OF TAX MAP KEYS: 2-1- 018:006, 007, AND 010 SITUATED IN THE DISTRICT OF SOUTH HILO, ALSO KNOWN AS KAUMAUI, UTILIZING THE PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION FUND The County seeks to acquire approximately 3.02 acres of land to protect natural resources and buffer zones, and preserve, restore, and revitalize freshwater and anchialine ponds. The parcels are listed as number two for purchase in the 2021 Annual Report of the Public Access, Open Space, and Natural Resources Preservation Commission. Reference: Comm. 122 Intr. by: Ms. Lee Loy (Note: Comms. 122.1 and 122.2, from Council Member Susan L. K. Lee Loy dated March 7, 2023, transmitting proposed amendments to Res. 60-23, were circulated.) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 60-23. Seconded by Ms. Kierkiewicz. CHR. INABA: Ms. Lee Loy. MS. LEE LOY: Thank you. Thank you, Chair. First of all, I really want to thank all of the testifiers who came out today, especially our haumana of Ka `Umeke K5'eo, some of whom I've known even before they were born, so thank you all for being here today. I'm really excited to advance this resolution. One of our testifiers mentioned, you know, we've done a lot of open space purchases, but this is the first ever for Hilo, and so to the rest of my colleagues, forgive me because I've never done one before, so there are a few refinements we're going to get to. But this particular Page 3 LAAC-5 March 7,2023 property, as mentioned, ended up on the PONC (Public Access, Open Space, and Natural Resources Preservation Commission) and was evaluated and given a number two priority. I've asked Hamana Ventura, from our Finance Division, in Open Space Fund, to answer any questions that my colleagues have. But I also have, I think Sasa(Louisa Lee), if you have any questions regarding community or the programs that Hui Ho`oleimaluo will be kind of envisioning for this project, she's available; and I'm going to put Blake (McNaughton) on the spot too, he's also here. We did hear testimony from one particular testifier regarding some concerns, and I'll let Hamana(Ventura) speak to kind of the processes that we are in, but what I really appreciated about Blake's testimony is often times when we do purchases with the Open Space Fund, we do the land purchase and then try and find stewardship. But this particular property is the exact opposite, we have a lot of stewardship going on and opportunities for preservation, and as he mentioned, kind of providing that cultural intrinsic value of`aina and community. When we talk about community, Keaukaha, they got it. They absolutely got it. One other thing the testifier mentioned was—also in her(Claudia Rohr) written testimony, some photographs about parking and some other issues (see Comm. 122.8). I just want to provide context for some of my other colleagues who don't visit Keaukaha. There are a couple of things going on in Keaukaha, and some of it happened when we lost a lot of our ocean resources because of lava in Puna. They had nowhere to go. So some of the surfing, the fishing, some of the things that they would normally do in Puna flooded Keaukaha, the closest ocean recreational spot. That's, one, which exacerbated some of the need of the beach parks in Keaukaha, and then this County just tends to do it, they advanced our ADA (Americans with Disabilities Act) compliance with the rehabilitation of our beach parks in Keaukaha. So when that construction contract was moving forward, they ended up closing a lot of the parking that was available at Richardson and Wai`uli, and all these beach places, which forced everyone to end up on this evacuation route that the testifier mentioned. So, I just wanted to share that with my other colleagues. I humbly ask for your support. I'm really excited because it is the first. If you have any questions, I'm going to let Hamana lead, and then any other questions you have for community, for Sasa. Thank you, Chair. I yield. CHR. INABA: Thank you, Council Member Lee Loy. I'm just wanting to keep our committee focused on not necessarily the stewardship or the programs going on, but what the resolution is focusing on, and that's really what Mr. Ventura is going to explain to us right now. Page 4 LAAC-5 March 7,2023 (Note: At this time, Real Property Manager Hamana Ventura came forward to address the members of the Committee.) MR. VENTURA: Yeah, thank you, Chair Inaba. Hamana Ventura, Property Manager, so let me just talk about the process: the Commission evaluated, made a recommendation, pass it on to the Mayor. Mayor pass it on to Council, and now we're at that point in the process for our Council Member for the district can bring this forward so that it gives us an opportunity to sit at the table with our partners and potentially look at having the first conservation easement in East Hawaii. It's part of the process. I'm here to answer any questions. CHR. INABA: Thank you. I'm going to be opening it up. Mr. Kaneali`i- Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you. Just to the maker of this, came across as a purchase acquisition, and then looks like we have amendments switching to the acquisition of a conservation easement. So,just wondering about the difference in the MS. LEE LOY: Chair, if I may? CHR. INABA: Yes, Council Member Lee Loy. MS. LEE LOY: Yeah, again, the first, and so I really just dusted off how we did all the other acquisitions in the past, but the more I began to dig into it, along with Hamana and then Judge Strance, to really tailor and refine the ability for Finance and some of the other mechanics that have to happen. I would like to introduce Communication 122.2, which helps refine that and really speak to the conservation easement. I'll be more than happy to do that now with the rest of my colleagues, or we can continue with the questions and answers, but that point two communication (Comm. 122.2) communication will be to refine exactly the ability that Hamana and Finance Department will be working with the Department of Finance and our community partners. CHR. INABA: Thank you, Ms. Lee Loy. Go ahead. Motion to Amend: Ms. Lee Loy moved to amend Res. 60-23 with the contents of Comm. 122.2. Seconded by Ms. Kagiwada. CHR. INABA: Council Member Lee Loy. MS. LEE LOY: Thank you, Chair. Pretty self-explanatory, everywhere that it mentioned "the acquisition,"I made sure we refined it to be "acquisition of a conservation easement" of that particular TMK(Tax Map Key), vetted this with the haumana along with Judge Strance to make sure that this was, you know, be Page 5 LAAC-5 March 7,2023 the accurate language to continue this process for this particular property. I continue to ask for my colleagues' support. CHR. INABA: Thank you. Any questions? Council Chair Kimball. MS. KIMBALL: Yeah, thank you. Just on the amendment, only asking because this recently came up with the bill that I had introduced, and this is a question for the Clerk, is it permissible to change the title of a resolution for the drafting standards? MR. BROWN: There's no clear-cut answer I think on that. We would want to you know, is it substantially different, we'd have to look at it. In this case, I don't know. I'd have to you know, I think we would look at the amendment a little more. I don't think it's substantially different. I think it's more clarification, so I think it would be okay, but I don't want to give an answer at this point. Maybe Judge Strance would like to weigh in? (Note: At this time, Corporation Counsel Elizabeth Strance came forward to address the members of the Committee.) MS. STRANCE: Good afternoon, Council Members. Elizabeth Strance, Corporation Counsel. I don't think it's a substantive change. The way that the County Charter is written, there are several options that the Council has to acquire property, and whether it's by fee simple, outright purchase of the property, or a conservation easement over the property, it's really just a different mechanism of accomplishing the same result. So, I would say "no." MS. KIMBALL: Thank you. I just wanted to make sure that we were good on that. I'm happy to support the amendment. I yield, Chair. CHR. INABA: Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. Thank you, Council Member Lee Loy, for bringing this forward, and everybody else here. Yay, East Hawaii, finally getting it. I just wanted to say that I am very supportive of this resolution. I heard the word"community" so often here that I really feel like, and maybe Sasa, Ms. Lee, you can come up and just speak to this for me. But I'm just wondering, there were some things brought up by somebody in your community that had some issues here, and it seems to be like, you know, with all this community and all this great energy and goodwill,there's a way to address some of these issues. With you guys coming up with ideas, ways to address, and I'm just wondering, obviously not going to write it into the resolution or anything, but just can we hear from you? Is that something the community is willing to do, is work with people that have some issues, be it parking, or smoke, things like that, Page 6 LAAC-5 March 7,2023 coming into their homes? Is that something that you as a group are willing to say you're going to Point of Order: MS. KIMBALL: Point of order, Chair. Sorry, Council Member Kagiwada, we're on the amendment. MS. KAGIWADA: Oh, sorry. MS. KIMBALL: So I suggest we dispose of that first before we go into the contents. MS. KAGIWADA: Okay, so sorry. Back to the amendment. CHR. INABA: Any other questions on the amendment? Mr. Kaneali`i- Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you, Chair. Hey, Hamana. I totally support this, but I'm just trying to understand this, the resolution, the way it's been presented. So we're acquiring the resolution authorizing the acquisition of a conservation easement? MR. VENTURA: Yeah. MR. KANEALI`I-KLEINFELDER: The language is like butting in my head because the conservation easement is something that's granted, but we're trying to acquire it. Is this normal language? Is this MR. VENTURA: It mirrors the language, that's what we used before. This is going to—we already have four conservation easements: Amy Greenwell Gardens, Waikapuna, Kiolaka`a, and Kaunamano. So we looked back at passed resolutions, and it's similar language. You know,whether we purchase it in fee simple or we're purchasing a conservation easement, those are both acquisitions. MR. KANEALI`I-KLEINFELDER: And the conservation easement is something that we can acquire as a County? How does that work? MR. VENTURA: So a conservation easement is they still hold they own the property, but we're taking away a portion of their developing rights. We're buying it, their development rights, to take away and preserve the property. And so the fund, if we're looking to preserve and protect, these are some of the abilities that we have with the fund. So let's say somebody else owns property and they could put up condos out there, we have the ability to buy that, the ability to develop those parcels we're taking. We're buying those rights from them. So it gives—it's a win-win for both sides. Page 7 LAAC-5 March 7,2023 MR. KANEALI`I-KLEINFELDER: I like the idea. So you're saying, basically we purchased the non-ability to develop it in the future? MR. VENTURA: Yes, I believe so. I think you nailed it. MR. KANEALI`I-KLEINFELDER: And in perpetuity. Forever, forever? MR. VENTURA: Yes. MR. KANEALI`I-KLEINFELDER: Okay, I like it. MR. VENTURA: I like the way you put it. MR. KANEALI`I-KLEINFELDER: Do we haveI mean, is there a dollar that's been said yet, or that's to be determined? MR. VENTURA: It's to be determined, I mean, based on us all sitting at the table, figuring out how to craft it. MR. KANEALI`I-KLEINFELDER: Okay, and then this entity is in perpetuity, as well? MR. VENTURA: Correct. CHR. INABA: Sorry, Mr. Kaneali`i-Kleinfelder, can you clarify which entity you're talking about? MR. KANEALI`I-KLEINFELDER: Sorry, the Kaumaui. MR. VENTURA: Should be, and/or their assigns, I would imagine if for some reason that in the future that they cease to exist. MR. KANEALI`I-KLEINFELDER: Okay. Yeah, okay. They can assign it to someone else in the future? MR. VENTURA: I believe so. MR. KANEALI`I-KLEINFELDER: That's interesting. I like that. MR. VENTURA: But our ability to take away the development rights is in perpetuity. It will be recorded. CHR KANEALI`I-KLEINFELDER: And this is for a portion of or the entire three parcels? Page 8 LAAC-5 March 7,2023 MR. VENTURA: Well, the conservation easement covers all of the TMKs, but what we can do is craft the conservation easement to probably allow for other items outside of preservation and protection so that they can continue to do things that follow their directives and are beneficial to the community. MR. KANEALI`I-KLEINFELDER: Okay, and when finished, public is allowed to access or it's the entity that controls the access? MR. VENTURA: Well, that will be part of the conservation easement when we get there, how access will be handled. MR. KANEALI`I-KLEINFELDER: Okay, so that's to be determined, too? MR. VENTURA: Correct. MR. KANEALI`I-KLEINFELDER: Okay. Okay, thank you. MR. VENTURA: Thank you. CHR. INABA: Thank you, Mr. Kaneali`i-Kleinfelder. And I think,just to refocus us, it's similar to all of our other PONC resolutions. We're just a step in the process. I already asked him about 5,000 questions yesterday, and I know it's not for us to really ask right now because that's what we're authorizing them to do after today, or after this resolution is approved. Council Member, Galimba. MS. GALIMBA: And if I may, I just kind of wanted to—I've done conservation easements. I've actually put one on my ranch, so I've had a lot of time to learn about it, so I just wanted to kind of explain some of the things that have been explained to me. I think the word "easement" is really confusing for a lot of people because when we think of like easements as, you know, you get to drive across somebody else's property. It's completely different. The way it was explained to me is that when you own a piece of property, it's like you own a bundle of sticks, and one of the sticks is you get to be there and one of them is you get to develop, and one of them is you know, you have these different rights that you have in owning a piece of property. Basically, a conservation easement is you're selling the development stick. For me, I want to keep the agricultural sticks, you know, so I don't give that away. But you can kind of choose which of those rights you have as a property owner and sell them to the County; and because it is the County that is buying it, there's a public, sort of nexus to that purchase, which you need to get figured out. And then you have you figure out, you write your conservation easement, saying how it's going to work, and then you get an appraiser who is a specialist in appraising conservation easements. They get the price, and then we buy that Page 9 LAAC-5 March 7,2023 conservation easement at that appraised price. So it's a very, you know, sort of third-person professional kind of process. So,just wanted to offer. Hopefully, that's maybe a little bit clear, I don't know. CHR. INABA: Thank you, Council Member Galimba, same analogy used by Mr. Ventura yesterday, so you're on to something. Council Member Evans. MS. EVANS: Just for clarity, so they have anticipated use in the Exhibit A that was attached to the resolution for us, and it says, "`Rina-based learning space and volunteer opportunities." So do you see any request to put in any buildings or, you know, like shelters, or restrooms? Do you see that coming along? Do you see the conservation easement,just keeping it completely 100 percent open space? What do you anticipate? MR. VENTURA: Well, based on the feedback from the community, I think that there's going to be opportunities for us to put up some shelters and some buildings to the effect that provides protection from the elements. That's what the fund allows for. MS. EVANS: It does. So, the conservation easement will not—because we keep talking about developing and developing it, but it won't cause a problem when you want to put up buildings? MR. VENTURA: Well, if there is going to be a problem, then we may get to that point where we may not enter into a conservation easement if we find out through the process that their goals may have changed, or maybe that we can't come to an agreement. But, that's part of the negotiation process. But at the end of the day, we're going to follow whatever permitting and planning requirements are required of that organization and that parcel. MS. EVANS: Right. Okay, thank you. MR. VENTURA: Mahalo. MS. EVANS: I yield. CHR. INABA: Any other questions? MS. GALIMBA: Yeah, actually over the CHR. INABA: Council Member Galimba, go ahead. MS. GALIMBA: Thank you. Just to respond to that, you can put building envelopes within, and then that lowers your conservation value, so you get— Page etPage 10 LAAC-5 March 7,2023 because you've taking parts of it out, then we would pay less as the County because we're getting less of the conservation easement in a sense. But I did want to ask, and I'm not exactly sure who this would be, but there was some sort of question—or in my mind—so there are two entities here Hui Ho`oleimaluo and Ka `Umeke K5'eo. What is the relationship between those two and the property? Could you, somebody, kind of talk about it a little bit? (Note: At this time, Louisa Lee, Director of Ka `Umeke K5'eo, came forward to address the members of the Committee.) MS. LEE: Aloha. Louisa Lee, Director of Operations at Ka `Umeke K5'eo. So I think initially Ka `Umeke K5'eo and Hui Ho`oleimaluo partnered around purchasing this property. So Hui Ho`oleimaluo is its own distinct nonprofit organization that has been doing loko i`a work in Keaukaha for quite some time. Ka `Umeke K5'eo is a public Hawaiian language emersion public charter school. Keaukaha is our learning laboratory, as most of you know. We have partnered with Hui Ho`oleimaluo around education. They've also served as our nonprofit to receive grant funds, as many charter schools do. How do I explain this? Charter schools also use nonprofits for facilities and for learning sites, which initially if anyone saw the MOA (Memorandum of Agreement), which is available publicly on our website, we do have an MOA, where that would be a learning lab for our students for 50 or so years. We have not negotiated a lease. We are in the process of hopefully negotiating a lease. So, that's kind of the relationship around the property. I think as things progress, as we learn more about both the PONC process and about different things happening within our community—and we have access to additional facilities, resources, and `aina in Keaukaha, which is occurring right now. How we use Kaumaui is going to change. Kaumaui is owned by Hui Ho`oleimaluo. That's it. Ka `Umeke is a partner. We have access to that property. We are not currently accessing that property regularly. Our students, among those that spoke here today access the property as like an excursion site or a huaka`i site, like they would access Kumuola, Onekahakaha, or Waiuli. So, that's kind of what the relationship is. Does that clarify that for you? MS. GALIMBA: Yes, it does, thank you. I just wanted to have that very clear on the record, and also for my understanding going in. But I really do—I mean, I'm a great supporter of PONC and the wonderful things that it can do, you know, keeping lands the way they should be. MS. LEE: Mahalo. Page 11 LAAC-5 March 7,2023 CHR. INABA: Thank you, Council Member Galimba. You kind of wrapped it up good at the end there. But just to remind us, this is for Finance to start negotiations with the property owner. Any other agreements that the property owner has with anyone else will be considered by our Finance folks, in negotiation of an easement. So if there are plans to build a school and there might need to be an exclusion, then that is what Hamana does. But if we cover 90 percent of it in an easement, that 90 percent decides what is permissible, you know, for shelter, PONC permissible uses, it cannot be developed any further. So, I just want to state that before we take any more questions as to the negotiation. Call for the MS. KIMBALL: If I could call for the question on the amendment,please? Question: CHR. INABA: Thank you. We got lost again. Okay, all those in favor of amending Resolution 60-23 with the contents of Communication 122.2, "aye," please? Vote of Motion The motion to amend Res. 60-23 with the contents of to Amend: Comm. 122.2 was carried by the following voice vote: (Approved) Ayes: Committee Members Evans, Galimba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. CHR. INABA: The resolution is amended. Now, back to the main motion, please. Main motion, which was to forward Resolution 60 to Council with a favorable recommendation. Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Sorry, one more question. Mr. Ventura, given the values of property, does that affect the easement acquisition at this time? Are we going to see an increased cost from the PONC fund because of the values right now, or is it not affected? MR. VENTURA: I don't think it's going to be affected at all. I mean, our fund is healthy. We have the ability to negotiate. If we want to move forward, it's not going to impact the fund or values. MR. KANEALI`I-KLEINFELDER: Okay, so the high-property values don't affect the negotiation of this easement or whatever it's going to be? MR. VENTURA: No. Page 12 LAAC-5 March 7,2023 MR. KANEALI`I-KLEINFELDER: Okay, thank you. MR. VENTURA: Thank you. CHR. INABA: Council Member Kagiwada. MS. KAGIWADA: Thank you, and sorry I was off course before. Just a quick back to what I was saying, is I just feel like you have an amazing community, just—you know, I hope you'll go forward and take this as an opportunity to include everybody, even people you've been having some disagreements with, and find ways to move forward together. So, I think you can do it because this is a lot of great thinking and a lot of energy. I can see community is at your corp. So please,just take this as an opportunity to do that. Thank you. CHR. INABA: Mahalo. Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. So if I'm getting this correctly, we're authorizing Hamana and his team to basically start talking story in negotiations to acquire this property. I seeing us of buying that, Council Member Lee Loy. really excited for you. The potentially first for Hilo, that's huge, in an area in community that is continuously being inundated. There's over development, and so we have to protect this microcosm, this precious ecosystem that is connecting opio and the rest of the community closer to `aina, so I can absolutely get behind that. It's so good to see familiar faces and friends, Sue, Joy, Sandy here, and all of your opio coming out. This would be huge for our Keaukaha community. So thank you, Council Member Lee Loy, for putting this forward and for also leaning into the conservation easement piece. I think it's really important for us to be looking at how we can conserve these spaces for this type of stewardship in perpetuity. I'll be supporting it today. Thank you, I yield. CHR. INABA: Thank you. Any last questions, comments? If not, I think testimony today shared the connection that this organization and this place brings, not just for Hilo's own people, but I've had friends who moved here to college who never did leave this island, and part of that reason is because of organizations like this who—maybe they don't live in Keaukaha or in Hilo anymore, but they have a connection to this island that would not have may be possible without the good work of these folks, so mahalo nui. We'll have one more reading at the County Council of this resolution. So with that, all those in favor of forwarding Resolution 60-23 to Council with a favorable recommendation, please say "aye." Page 13 LAAC-5 March 7,2023 Vote on Res. 60-23: The motion to recommend adoption of Res. 60-23, Draft 2 as amended to Draft 2, was carried by the following (Approved) voice vote: Ayes: Committee Members Evans, Galimba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Inaba–9. Noes: None. Absent: None. Excused: None. CHR. INABA: Mahalo all for coming today. With that, we will move on—we're going to take some things out of order. Mr. Clerk, if you could Resolution 62-23, please? Change Order As directed by the Chair and with no objection from the Council Members, the of Business: following items were taken out of order: Res. 62-23: AUTHORIZES GRANT OF A 65-YEAR TERM EASEMENT FOR UTILITY PURPOSES TO HAWAII ELECTRIC LIGHT COMPANY, INC. AND HAWAIIAN TELCOM, INC., OVER TAX MAP KEY: 3-9-001:034 (POR.) AND 3-9-001:042 (POR.) LOCATED AT O`OKALA, DISTRICT OF NORTH HILO, COUNTY AND STATE OF HAWAII Provides Revocable Right of Entry to Easement U-2 at a cost of$1,700 and Easement U-3 at a cost of$5,000 for the continued maintenance and operation of infrastructure required to provide electrical and telecommunication services to the community. Reference: Comm. 124 Intr. by: Mr. Inaba(B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 62-23. Seconded by Ms. Galimba. CHR. INABA: We have Mr. Ventura here still with us. Mr. Ventura, if you could just cover what this resolution is for us? MR. VENTURA: Thank you again. Hamana Ventura, Property Manager. So in O`okala, we have lines that provide electricity, telecommunication services. They were there from probably before we were born; but after the fact, it's been found that HELCO (Hawai`i Electric Light Company) has lines, and they're actually asking for our permission to retroactively recognize that, and they're famous for it, happens every now and then, once in a great while. But what we found that, during when we were developing communities, then to power them up, I mean, Page 14 LAAC-5 March 7,2023 we needed those types of utilities being put in place. Some of them never had on paper, and now we're just putting it down on paper. CHR. INABA: Thank you very much. Any questions, discussion? If not, there's a motion on the floor to forward Resolution 62-23 to Council with a favorable recommendation. All in favor, please say "aye." Vote on Res. 62-23: The motion to recommend adoption of 62-23 was (Approved) carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. CHR. INABA: Next, Resolution 63-23. Res. 63-23: AUTHORIZES GRANT OF A 65-YEAR TERM EASEMENT FOR UTILITY PURPOSES TO HAWAII ELECTRIC LIGHT COMPANY, INC., OVER TAX MAP KEY: 3-9-001:034 (POR.) LOCATED AT O`OKALA, DISTRICT OF NORTH HILO, COUNTY AND STATE OF HAWAII Provides Revocable Right of Entry to Easement U-1 at a cost of$21,000 for the continued maintenance and operation of infrastructure required to provide electrical service to the community of O`okala in North Hilo. Reference: Comm. 125 Intr. by: Mr. Inaba(B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 63-23. Seconded by Ms. Galimba. CHR. INABA: Mr. Ventura, anything to add on this one? Same concept. All right, any discussion? Mr. Kaneali`i-Kleinfelder. MR. KANEALII-KLEINFELDER: Thank you. Thank you, Mr. Ventura. Sixty-five years, does this account for the fact this is a 65-year easement? MR. VENTURA: So, what we're doing is we're following State. We're not granting easements in perpetuity anymore, but this was a County for investment. MR. KANEALII-KLEINFELDER: Okay. This is a large piece of property or a large easement? Page 15 LAAC-5 March 7,2023 MR. VENTURA: Well, it's a larger easement than the other one, and this was the transmission line. MR. KANEALI`I-KLEINFELDER: And we feel this was a fair amount to MR. VENTURA: We based on the appraisal. MR. KANEALI`I-KLEINFELDER: Ask for 65 years. Does it take into account increasing a valuation over 65 years? MR. VENTURA: The appraiser did. MR. KANEALI`I-KLEINFELDER: He did? MR. VENTURA: Yes, but hopefully in 65 years,we would come up with the technology, where these lines won't be needed anymore. MR. KANEALI`I-KLEINFELDER: I can test the coils now. MR. VENTURA: Yeah, something to that effect. I mean, yeah. But if I'm here in 65 years, I'll come back and ask for an extension. MR. KANEALI`I-KLEINFELDER: I hope that none of us are here in 65 years. MR. VENTURA: Yeah MR. KANEALI`I-KLEINFELDER: This is what, one point three (1.3) acres? MR. VENTURA: I forget the size of it. I don't have it in front of me. MR. KANEALI`I-KLEINFELDER: Okay. Okay, thank you. MR. VENTURA: Thank you. CHR. INABA: Council Member Galimba. MS. GALIMBA: So, quick question. Is this property the one that we got from the plantation, you know, when there was that settlement, and we got like 1,000 acres in Hamakua? Do you happen to know? MR. VENTURA: Well, there have been—we have multiple properties out there that were part of the settlement. MS. GALIMBA: Oh, really. Page 16 LAAC-5 March 7,2023 MR. VENTURA: This even runs through a couple of parcels. MS. GALIMBA: Okay. MR. VENTURA: Yeah. MS. GALIMBA: Okay, thanks. MR. VENTURA: But it connects to—it helps to light up and provide services to the residents in O`okala. MS. GALIMBA: Awesome. Thank you. MR. VENTURA: Thank you. CHR. INABA: Thank you. Council Member Evans. MS. EVANS: Just a question on how you came up with valuation. MR. VENTURA: Based on their appraised based on appraisal. MS. EVANS: Okay, so is it just a one-time fee or is it an annual? MR. VENTURA: Onetime. MS. EVANS: For 65 years, that's not a lot. So it's their appraisal, or do we go through the process? They do one, we do one, and then we negotiate? MR. VENTURA: No. It was appraised by them, but with a County-approved appraiser, yeah. MS. EVANS: Oh, okay. All right. Okay, I know—it seems that if it's 65 years—anyway, it seems like we're generous, yeah. But anyway, thank you. I yield. CHR. INABA: Thank you. Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Follow-up, annual or one-time payment? MR. VENTURA: Onetime. MR. KANEALI`I-KLEINFELDER: One-time payment, $21,000? MR. VENTURA: Um-hum. Page 17 LAAC-5 March 7,2023 MR. KANEALI`I-KLEINFELDER: This is for 1.3 acres, that's what it says. Okay, thank you. MR. VENTURA: Thank you. CHR. INABA: Any further discussion? And I think let's just point out that it's for public utilities, so they don't live on one acre of parcels, they go to service the lines so that we have light. So there's a motion on the floor to forward Resolution 63-23 with a favorable recommendation, all those in favor? Vote on Res. 63-23: The motion to recommend adoption of Res. 63-23 was (Approved) carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Villegas, and Chair Inaba—8. Noes: None. Absent: Committee Member Lee Loy — 1. Excused: None. CHR. INABA: Now, is everyone okay to continue? Need a break? No. We're continuing, okay. Last order of business, please, Mr. Clerk. Return to Order The Chair directed the Committee to return to the order of business. of Business: STATEMENT The Chair called Lyan Youngs, Director of Finance and Fund Development FROM PUBLIC for Neighborhood Place of Puna, who registered to speak in support of ON RES. 61-23: Res. 61-23 (Comm. 123), and came forward when called by the Chair. Res. 61-23: AUTHORIZES THE OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT TO AWARD FUNDS TO VARIOUS NONPROFIT ORGANIZATIONS FOR PROGRAMS ADDRESSING HOUSING AND HOMELESSNESS Proposes 16 grant awards to 13 different nonprofit organizations for a total of $7,583,528.92 in funding that was derived from Tier Two property tax revenues. Reference: Comm. 123 Intr. by: Mr. Inaba(B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 61-23. Seconded by Ms. Galimba. CHR. INABA: We'll have Administrator Kunz and Ms. Hirota come up to get us started with kind of the overview of this process this year, thank you. Page 18 LAAC-5 March 7,2023 (Note: At this time, Housing Administrator Susan Kunz and Housing Specialist Sharon Hirota came forward to address the members of the Committee.) MS. KUNZ: Good afternoon, Chair Inaba, Vice Chair Galimba, and members of the Council. My name is Susan Kunz, and I'm the Housing Administrator for the Office of Housing. So we are here today to present to you a list of projects that we are recommending for funding, the Fiscal Year 2022-2023, Homeless and Housing Funds. You know, we also want to provide today, my staff will do this for you, but I wanted to provide for you today the process that we engaged to select these projects, and I think also, really importantly, to show you how these list of projects will now be delivered against the 13 priorities listed in the Strategic Road Map that we presented to you back in September. So I guess with that, I'm going to turn it over to Sharon Hirota and let her walk you through the process that we just engaged, thank you. MS. HIROTA: Hello. Good afternoon, Chair Inaba and Vice Chair Galimba, and the rest of the Council Members. Thank you for having us here today. Sharon Hirota, I'm the Division Manager for the Community Engagement Division, for the Office of Housing and Community Development, and is part of the team that was charged with the procurement process for the Homeless and Housing Fund. So, to just give you some background. Back in November of 2022, we issued an RFP (Request for Proposal), and then subsequently held two informational meetings that were very well-attended, with over 60 attendees over two sessions. This informational meeting was open to anyone interested in learning more about the RFP and the process. We walked through the requirements, the deadlines, as well as provided opportunities for individuals to ask questions. Then subsequently we issued two written statements based on questions received for clarification of the RFP. At the close of the RFP, we received 31 responses from the community, asking for over $25 million in funding, so 31 responses from 21 different organizations on the island. We went through an evaluation process, used with the committee of five individuals who ranked and rated separately, independently, all of the evaluations, and my hats off to all of those committee members because it was a very difficult task reading through all of the great proposals and then having to rank and rate them. I want to clarify that within the RFP it was already spelled out, what they would be rated on, and the required documents that they would need to submit in order for their RFP—or the response to the RFP to be considered. Page 19 LAAC-5 March 7,2023 The committee met, and based on our funding awarded, a little over $7.5 million, or is asking to fund 13 different organizations for 16 different projects, totaling a little over $7.5 million. I think what's important is that when we look at the responses from these organizations, while the County is investing $7.5 million, these same organizations were able to secure an additional $12.4 million in federal, state, other county, and private donations. So while the County is funding a portion of it, the total cost of these projects that we are recommending is a little over $20 million, so 62 percent of that is coming from other funds. Our next steps, if the resolution is passed, are to execute these grants agreements for a 12-months performance period, finalize our collection of data through our existing management software program. So as required under the RFP, our responders are going to be required to submit reports to us so that we can monitor their performance and the results. They are all standardized reports feeding into one data system, so we'll be able to track. We are also planning to do debriefings with organizations that were not funded, should they choose to talk about areas of improvement and getting ready for the potential and second round of funding. We are also excited because we will be working on developing and initiating what we're calling a"Community of Practice,"to build partnerships and ongoing collaboration of services, connection to technical assistance, and the opportunity to leverage additional funds in the future. This Community of Practice will bring everyone to the table to share about their programs with each other so that we can ensure that there is consistency in the delivery and understanding of who is doing what in what community. Thank you. CHR. INABA: Thank you, Ms. Hirota. Opening it up to the members of the committee. Questions and discussion? Council Member Lee Loy. MS. LEE LOY: Thanks. I promise, I'm having nonprofit grant-in-aid flashbacks right now. Sharon, thanks. I just wanted to understand, and again, trying to understand how many people we're going to serve, right? And so I see a number of programs doing a lot of things. I'm just wondering if through this process we'll be able to capture the unduplicated numbers. So, I understand servicing this population from homelessness into housing. We kind of move that one person through these different programs. I'm just wondering if through this process, as you award the contracts, if we're going to be able to capture that this one individual went through all the different programs or if multiple individuals are just taking on certain services. So, duplicated or unduplicated numbers. Page 20 LAAC-5 March 7,2023 MS. HIROTA: Okay, the requirement under the RFP is that they report to us who they serve. So there's a standardized form that they would need to complete online into a data system that will track. These organizations will be able to see these individuals in the system, so they would know if they're already connected to somebody because that's the duplication, right? And then the question becomes, if they're already in the system, what services are they connected to, to ensure nonduplication of services, right? Because you could go in two different doors and get two different services, but they're still one person in the system. Correct, yeah. MS. LEE LOY: Right, and I think that's where we'reI'm, personally,just trying to get my arms around the true cost involved, right? Because one person might take—go through one door and be able to kind of get from Homelessness to Housing by taking on just one or two services, right, whereas others might need a whole lot more; and so one individual,just for conversation sake, might cost us $10, where someone else might cost us $1,000. That's where I'm trying to understand, if we'll ever get to that. MS. HIROTA: I think for us, this is the first year of funding, and so we're working with our data management team to collect that data, right? So first we have to start off with this standardized reporting so that we can understand how many people is because each of the responders also indicated what they plan in terms of their outcomes, based on their funding source. So we're measuring that cost, but we're alsoI'm hoping that we would—in the overall, be able to get to the point where in terms of what you're asking for, yes. MS. LEE LOY: I think for future planning, right, how we provide resources in this area in a very smart and systematic and efficient way, I think, you know, we have this gift between Council Member Lee Loy and our former colleague, Council Member Chung, that kind of architected these two different pots of money, and I know they have Sunset dates on it, and so I just want to be able Then, one final question, and if you don't have it now, it's okay, or you can just send it to me. Of all of these programs that are listed here and the amount of funding, do you have a percentage of how much of it is going to salary and wages within these various organizations? MS. HIROTA: So there were twoI think there was a cap on the administration cost within the RFP, and the way that the RFP was written, the listCounty admin. they took, the more points they got. MS. LEE LOY: Say that one more time. MS. HIROTA: So the less admin. cost that they used towards their project, to apply using County funds there's a 15 percent cap, one; two, the less County Page 21 LAAC-5 March 7,2023 funds they used for admin. cost, the more points they received on their RFP. So leveraging other dollars to pay for admin., and putting our money to program. But, I don't have that information in regards to the cost. Because, there's administrative cost overall, right, because those are County people, and leaders, and all the other admin. costs that goes—associated with these programs. And then, there are program costs. When you talk about case managers who are on the ground doing the hard work. So when you talk about monies in relation to salaries and payroll, there is a cost in there, payroll-wise in regards to the delivery of the services. That's the most critical part. And then, there is payroll related to admin. So we can give you the admin. cost versus the program cost. MS. LEE LOY: Yeah, right. And I don't mind taking this part offline a little bit, because to run a program, you've got to pay for the salary and wage. I completely understand that. I just was wondering, of this amount, if the 15 percent cap was in there. I can just do the back math anyway, right, and kind of come up with a round number as far as what would be related to salary and wages. MS. HIROTA: You can do the 15 percent of the award, and that would be like the max admin. MS. LEE LOY: Max, right. MS. HIROTA: But that's not necessarily because some people took zero from our program—from our County funds, and used other funds to do it. Other's did 15. I don't have it, so—but it runs the—it does run a range, from zero to fifteen. MS. LEE LOY: Yes, thank you for that. Yeah, maybe we can just take it offline. I completely understand. I think, understanding that there's a cap and a high-end, right? But if that high-end is the high-water marker, then we actually know of programs that didn't take salary and wages can still run the program because they've braided on their funds or other resources to run the entire program. Thanks, Sharon, Susan. Thanks for being here. I yield. CHR. INABA: Thank you, Council Member Lee Loy. Council Member Evans. MS. EVANS: Thank you. Hopefully, a short quick question here. With all the data of the programs and the number of people that you're going to be serving, and then you'll have some measurable outcomes, is there an opportunity with all that data to help us get possibly federal funding or state funding? Is that kind of a plus to this effort? MS. HIROTA: The answer would be "yes," and that is the goal. It is to use the County funds to leverage other funding that's available within—at all levels, Page 22 LAAC-5 March 7,2023 federal, state, as well as working with the nonprofits who worked directly with private partners. MS. EVANS: Thank you. I yield. CHR. INABA: Mr. Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you. How much funding do we have in total for this particular portion? MS. HIROTA: A little over $9 million. MR. KANEALI`I-KLEINFELDER: So, $9 million. So you have like about $9.5 million left? MS. HIROTA: Well, we have $1.5 million available for—yes, admin. cost and other contracts. MR. KANEALI`I-KLEINFELDER: Okay. That was for that's yearly, correct? MS. HIROTA: Correct, yes. MR. KANEALI`I-KLEINFELDER: Oka, well, based on the amount of taxes that come in? MS. HIROTA: That is correct. MR. KANEALI`I-KLEINFELDER: This year was $9 million, okay? MS. HIROTA: Yes. MR. KANEALI`I-KLEINFELDER: And then these were the full-ask that each organization came in with or this is funding that we could do? Sorry, so let's take one, Hawaii Affordable Housing, Hawaii Community Lending, getting $808,000. They asked for $808,000 or just a portion of what they asked for? MS. HIROTA: So there were three organizations: Hawaii Community Lending, and I think it's in part of the packet that we gave you; two of Hope Services projects, who we offered less than what they were asking for. So we brought that forward to the organizations, and they came back indicating that they appreciate any funding from the County, and then we adjusted their budget and their scope of services and outcomes. MR. KANEALI`I-KLEINFELDER: Okay. So all but three were full? Page 23 LAAC-5 March 7,2023 MS. HIROTA: All but three that's listed here is full. MR. KANEALI`I-KLEINFELDER: Okay. Well,thank you. You guys did a good job, and I'm sure it wasn't easy but might be effective. It should be huge in our community, so appreciate it. And thank you to the nonprofits that came today to offer their support. I mean, how could you not support this? But thank you for coming in today and giving us positive testimony. And thank you for Housing department. CHR. INABA: Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. Thank you all for this hard work and for getting, you know, helping to finally get this money out the door, which is going to be so important for our community. The main question I have is, was there any money put aside this year, or are you considering it for future years for developing some of the bigger projects that have been at least, you know, floated about, such as developing the property on Rainbow Drive, Old Hilo Hospital area, and that property? It's kind of one of theseI realize it's not a quick and easy thing, but personally need some funding to do some studies and to figure out if that's even possible, and to move on from there. Is there any of this money this year going to be going to that, or do you think there might be some next year? MS. HIROTA: So the Homeless and Housing Fund, the funding must be encumbered before the end of the fiscal year. So we're up against the clock right now, to ensure that if there are any monies not encumbered by 6/30 (June 30), lapsed. So in regards to there is no set-aside; because if we don't encumber, we cannot use it for a new fiscal year. In regards to future funding, there are lots of—we went through the first year of process. There are some tweaks to make to make it a better process. Whether or not somebody comes in, including the County, to apply for funding to support the work at 34 Rainbow Drive,just depends, yeah. But if there's no—right now, there's no provision to set aside for a specific project. It's open to the community. MS. KAGIWADA: Okay. So is this—are you considering that these nonprofits you're awarding funding to will most likely or at least have a very good chance of getting future funding in successive years? MS. HIROTA: It's a competitive grant, and so they would need to reapply again when funding becomes available. So this is a—for this round, it's a 12-months performance period. When we do the next round, they may come in for a different project, so we'll be managing multiple contracts with different dates. Page 24 LAAC-5 March 7,2023 MS. KAGIWADA: Okay. And then, last thing, I just had a question about—you said 31 organizations applied and that you had very specific criteria. Did all 31 meet all the original criteria, or were some of those decided just because they didn't give you what you asked for, as far as the criteria that was required? MS. HIROTA: So we had 31 responses, and of the 31, 30 met the criteria, one didn't. MS. KAGIWADA: Okay. Okay, and the rest was just based on your evaluations? MS. HIROTA: Correct. MS. KAGIWADA: Okay. Thank you so much. MS. HIROTA: You're welcome. CHR. INABA: Council Member Galimba. MS. GALIMBA: Thank you. A little bit following up on Jenn's question. I wanted to ask about, if any of these projects are increasing housing, like the number of houses? I think you just said that there's a tight turnaround, which would somewhat make it difficult to trust that, but it looks like from the titles there might be some that would start to work on actually building more housing rather than getting people into existing housing. So I wanted to ask you if you have any information on that. MS. HIROTA: I don't have exact numbers, but I can give you a general idea. So there are a number of organizations that want to increase their capacity and the delivery of what they call "bridge housing or interim housing"to provide care for those suffering from substance abuse, mental behavior, health. I think Patrick, if he's still in the room here, from Habitat for HumanityI cannot look behind Habitat for Humanity has a number of unfinished homes; that he's asking for support so that he can hire staff to manage and complete those homes in both—oh my God—in both Puna, and I'm sure he can answer back, in Kawaihae area. So, there are a number of opportunities to increase the number of housing. The other one that comes to mind, as I read through it, is CSF Real Property, Inc., which is Child & Family Services, wants to expand their domestic violence project, by adding more rooms. The other one that comes to the top of my head, and I can provide more information if you want; Mental Health Kokua is looking to expand their permanent supportive housing, number of beds that they provide in West Hawaii. CHR. INABA: Thank you. Council Chair Kimball. Page 25 LAAC-5 March 7,2023 MS. KIMBALL: Thank you, Chair. Thank you, guys, for being here. Let me just first start off by saying that really appreciate the support of programs that are looking at the behavior health, substance abuse, you know, something that I think we as a body have talked about several times, is kind of just in addition to getting people in housing. They need these wraparound services. I want to just go back to the metrics. If I'm looking at the RFP, it looks like the requirements for reporting from the nonprofit are basically the demographics of their clientele, their intake. Is that correct? MS. HIROTA: Yes. So when we wrote the RFP, we were still working with our data management, so we kind of did a basic demographic information worksheet. Since then, we've been working with the data manager to try and add additional things so can collect more information. MS. KIMBALL: Yeah, that was kind of my question. Just looking at the diversity of programs, it looks like there to me, I think it would be difficult to have some standardized performance metrics, like how many clients served, and how many get from a to b, and then b to c. But with the grant agreements that come out, you know assuming this resolution is passed, will there be those types of performance metrics included in the agreement, and will we have access to see those? MS. HIROTA: So part of the RFP and their response, they defined what their outcomes are going to be and what they were going to achieve, so we're going to hold them to those performance. And then, in a previous resolution, connected to the strategic roadmap, you talked about different metrics, so we're trying to gather all of those data points. So yes, because there are some that will help individuals directly and we need to track those, and then there are those that are just going to increase the number of beds. So, it will vary from contract to contract. But we're trying to make sure that when we talk about the delivery of services for individuals, that we're tracking that data, and to ensure that we know the number of people served and from what type of services they received. MS. KIMBALL: So they—in their submissions, they'll identify their proposed outcomes, and then those will be used as their performance metrics. What I'm trying get at is, are we going to have the data available and mandated for them to do—for us to do, you know, contract monitoring down the line, and ensuring that what we've said we would support and pay for, is getting support and paid for, and has the outcomes that we're anticipating with the contracts. Does that make sense? MS. HIROTA: Yes, it does because that's what we as part of our practice within the Office of Housing; so any contract we enter into with our nonprofit providers, federal- or state-funded, we do monitoring at both fiscal and contract. Page 26 LAAC-5 March 7,2023 MS. KIMBALL: Okay, so is there—are we the Council going to have any way to view those contracts per organization? Are those going to be publicly available contracts? MS. HIROTA: Yes, once they're completed and executed, they become public documents. MS. KIMBALL: Okay, great. Thank you. And then just one final question, with respect to the intake and the clientele documentation, do you guys have a baseline already? Like, where are we now, prior to the implementation of these grants and these programs so that we can evaluate our progress? MS. HIROTA: So the County belongs to the coalition, Bridging the Gap, and there is one provider that collects data between the three islands: Hawaii County, Maui County, and Kauai, and on their website you can now do some dropdowns, based on federal and state funding. So we're adding one more layer, which is County, and so we would be able to not only track overall the results of Hawaii County, but also track results based on Hawaii County funding. MS. KIMBALL: Yeah, thank you for that, and Administrative Kunz actually mentioned that to me on the phone the other day and that's great that we're going to have that. Greater access to, you know, the real-time data. They may have changed the site. The last time I looked at it, which was probably a couple of months ago now, it didn't seem like though, that there was like, "This is point A. This is where we start," and then you can visualize like where things are right now. But my question is, with this program, do we have a baseline, so that when we do the annual reviews, we can actually have something to refer back to, is this is where we're started? MS. HIROTA: Yes, so the system allows us to take a snapshot of where we are. So, the snapshot will be taken once we execute the contract because things can change between now-30 days from now. MS. KIMBALL: Right. Okay, yeah that would be my request then, is to—when all the contracts are executed, the snapshot and—maybe just convenience, for the rest of the body here, if that can be shared with us as a communication. I think that would be useful. MS. HIROTA: Okay. MS. KIMBALL: Yeah, great. Thank you. I yield, Chair. CHR. INABA: Thank you. Council Member Kierkiewicz. Page 27 LAAC-5 March 7,2023 MS. KIERKIEWICZ: Thank you, Chair. No question,just a thank you. I think when we were debating the merits of this bill last Council term, you know, there was discussion around supporting homelessness, in addition of housing, the connection of the two, what the Council priorities were. But I think you guys really hit the nail on the head, we gave you a lot of direction, and in a very short amount of time, you guys architected a program, developed rules, engaged community, developed a roadmap and metrics, put out the RFP, and now you're going to be awarding $7.5 million to our community partners that know what's needed on the ground. Sharon, I think when we talked about this program, you said, "Aske, we need flexible funding." Because there's so much restriction for federal money, for state money, we need something to help fill in the gaps and allow our community partners to be innovated; to fund those local community-driven solutions, and that's what we're doing here. So, I just want to thank you; and to all the folks that showed up, thank you for doing the hard work. I don't even know what it's like to be serving in these social services capacity; but just taking a look at all of the program descriptions and the hard work that's going to be done in every single community around the island, I'm really excited about this opportunity the decision we made to invest in this way. So, look forward to all the data and reporting. But again,just thank you, Sharon, to you and your team; Susan, for architecting this program and getting money to folks that are doing the hard work. Thank you, Chair. CHR. INABA: Thank you. And taking it over to Kona, Council Member Villegas. MS. VILLEGAS: Aloha, thank you. I'm going to be I guess the one speaking out a little differently today. I won't be supporting this resolution, and I have a lot of questions about it. I know myself and a large number of constituents in my district were really disappointed to see how these funds have been allocated. There's been a lot of questions about the process, unfortunately. I have been trying to do my own research to discover what in fact the authority of this body is to approve, or disapprove, or amend, or whatnot,where the allocation of these resources has been placed. The first thing that comes to me, is I find it ironic that after sitting here with my colleagues and listening to the consultant that was hired to create the strategic roadmap, we fairly unanimously agreed that we were unimpressed with that roadmap, and it was not something that brought a whole lot of comfort or security. I still feel that way. A lot of the terminology in here is based off of that report. Page 28 LAAC-5 March 7,2023 I have questions about whether or not this resolution is appropriate. In its capacity right now, is that we are being submitted with such a broad number. There are 16 new projects being granted through this resolution that incorporate 13 different organizations. and if there shouldn't be resolutions for each one of these separately. I also haveI'm curious as to what organization didn't meet the criteria and why; and of 31 applications we haveI'm assuming that's 31 projects because here we have 16 projects being awarded, which are comprised of 13 different organizations, and one of those organizations is being awarded 30.7 percent of the funds, and it's not mystery, and it's no secret. The people are unhappy with the services being provided by Hope Services, especially in District 7, and to me this creates the definition of insanity. I mean, the State just awarded them $2.8 million. We keep throwing money at something that's not working, and I don't believe that throwing more money at an organization who hasn't been able to, whether or not for their own reasoning or viable or not, they're not able to get the right staffing. The facilities in Kona are deplorable. The issues that we're navigating with Community Policing, and the people that are actually there on the streets doing the work and making a difference, it's really, really disappointing that not one penny, not one red cent was allocated to that specific organization. It's just been such heartburn, and so challenging to figure out to talk to the different people calling my office saying, "My tax dollars aren't even going to go to the organization that I rely on day-in and day-out." It gets 24/7 phone calls from the hospital, actually from the providers at different nonprofit organizations for specific health and guidance, and they're not allocate one penny. It doesn't sit right with me. This is so much money, so much money; $9.5 million is an extraordinary amount of money. I'm not naive enough to believe that any amount of money could completely save homelessness or solve those issues. But I don't feel that this is an equitable distribution, nor will it be—will it be successful? Unfortunately, I think that we're throwing good money after bad, and I don't think that—numerically and from a metric standpoint, and through data-driven things which unfortunately can also be very subjective, even though numbers are meant to be objective. One working in this arena—and I have worked in social work. I have worked on the streets with people. Yeah, trying to turn it into paperwork and numbers can be really, really challenging. But, I think we have overlooked where the successful matrix actually exists, and changes are being made, and for that reason, I'm not able to support this moving forward. You know, I have questions, once again, for 30.7 percent of this funding going to Hope Services Page 29 LAAC-5 March 7,2023 CHR. INABA: Council Member Villegas, I just want to point out that the timer went off so if you can summarize, and I can come back to you if you have more questions. MS. VILLEGAS: Thank you, Chair Inaba. I can'tobviously, I can't hear from here. So anyway, expressing some of my concerns. I do apologize for being negative-Nancy here, but I feel like I would be remiss if I did not speak the words of the constituents and those that work in this field that continually come to me for resources and financial support, and this was an opportunity for that. I yield. CHR. INABA: Thank you. Council Member Evans. MS. EVANS: Yeah, thank you. Thank you, Council Member Villegas, for your comments. It really points out that there were 31 projects, which means 31 organizations that are very committed to this issue. Now, obviously, I am really curious as to 16 of 31, which means 15 organizations did not get any funding. So, what disqualified people? MS. HIROTA: Can I speak? CHR. INABA: Yeah, Ms. Hirota will answer your questions. MS. EVANS: Okay. MS. HIROTA: So,just let me clarify. There 31 responses from 21 different organizations. MS. EVANS: From 21? MS. HIROTA: Yes. MS. EVANS: Okay. MS. HIROTA: And so we awarded of the 31 applications, we awarded 16, that represented 13 organizations. So, there were eight organizations that didn't get funded. MS. EVANS: Is it that they got disqualified because they didn't fill out right? MS. HIROTA: No, it was part of the rank and rating and the limited amount of funding. So the total ask was $25 million, and we only had $7.5 (million). So when you rank and rate, we gave to the top 16. MS. EVANS: Okay. Page 30 LAAC-5 March 7,2023 MS. HIROTA: Before we ran out of dollars. MS. EVANS: Right. MS. HIROTA: And then we had to adjust three of those down in order to help more. We could have stopped, and we would have beenI don't know where they would have been—but we adjusted numbers in order to help more organizations. MS. EVANS: So there was no limitation on the amount that they could that the organization could ask for if you got the $25 million, and asked. MS. HIROTA: No, there was no cap. MS. EVANS: Okay. I hear Council Member Villegas's concern about— obviously, boutobviously, the amount of people or the amount of projects and the amount of organizations that really want to be out there helping people, it's yeah. And I do also want to echo her about Hope Services. I know they do good things, but I've also heard some criticisms of some of the stuff they do. I don't know how you weighed that in when you're ranking, when we as, on the frontline, hear from our community and get that kind of input, I just don't know how you get to ranking that. That's kind of hard to add that into your job, to actually hear that kind of feedback that we get from the community. Anyway, I thank you again, Council Member Villegas, to pointing out. Obviously—especially the West Hawaii, you know, some of the concerns. I mean, you're the one that's in Kona and experience more the homeless than I do out in my part of the island. Thank you very much. I yield. CHR. INABA: Administrator Kunz. MS. KUNZ: I thank you. I just want to make a comment and kind of adding to what Sharon was sharing. You know, I have personally spoken to several of the organizations that were not funded, and I have spoken to the organization that didn't qualify. I really want to reiterate what Sharon said earlier; I really want to encourage the organizations to come in and meet with us. We have a responsibility to debrief, and we are more than willing to go through their application and share how the committee ranked and rated their proposals. There is going to be four more rounds of funding coming down the pipeline, and we want to help these organizations build their capacity so that the next round of funding they are, you know,potentially eligible, right, and they can compete. So I really, again, want to encourage these organizations to come in and meet with us so that we can go through the applications and share with them where they may have fallen short, or things like that. Thank you. Page 31 LAAC-5 March 7,2023 CHR. INABA: Thank you. Other discussion? All right. MS. VILLEGAS: Chair Inaba? CHR. INABA: Oh, Council Member Villegas, go ahead. MS. VILLEGAS: Yeah, I just had a quick question. It was shared, and thank you for this packet of information that was provided for the—about the applications that were awarded and the criteria of the 13 that they did connect with, through the x-boxes. Thanks, that was really helpful to take a look at. I suppose that part of my heartburn too comes because we have this $5 million set aside, directly to build housing, and so I was wondering why some of these applications for projects that were like housing funds and lending to buy homes. I suppose in my mind that would have been more aligned with the other $5 million, that's kind of in this other pot of money, versus direct homeless services. So there's just a little bit of a disconnect there for me. But my question beyond that is, who was on the selection committee? I heard there were five people, three from within Housing and two from external; and what are the capacities, areas of expertise, you know, connection to this process that qualified them to be on that selection committee? MS. HIROTA: So members of the committee included Tim Hansen, who is the Executive Assistant to Mayor Mitch Roth; Kehau Costa, who's with the Office of Housing and Community Development in our existing Housing Division, and she's our Planner; Cristina Pineda, she works for the Office of Housing and Community Development, and she's our Fair Housing Officer, working out of West Hawaii, our West Hawaii area; Allen Bartolome, with the Prosecutor's Office; and myself. MS. VILLEGAS: Thank you for helping with that. And then, could you explain, I suppose a little more, specifically why organizations that are—it seems that the focus for this funding is more towards building housing as opposed to kind of the services, specifically with getting our houseless off the street, why that wouldn't align more with this other pot of money that we have, that$5 million? MS. HIROTA: I'm sorry, I missed the question. Can you repeat? MS. VILLEGAS: So it's my understanding that the $5 million that was put in, the separate fund, I believe it was like Council Member Kierkiewicz, is put in a Housing Fund, and that is specifically to be spent on building housing, right? That's like brick and mortar, get the houses up for people to go in. It was more my understanding that this $9 million was to be focused on those working in the streets on projects, conceivably, you know, mental health, substance abuse, direct Page 32 LAAC-5 March 7,2023 homeless services as opposed to building or financing the building of homes. So I guess I wondered why, and perhaps I'm not understanding, specifically, homebuyers for Affordable Housing Fund programs here. Are we building a new one-stop housing and service resource center for the Neighborhood Place of Puna? MS. KUNZ: No. So let me try to see if I can answer the question. I think what you'reI think I understand what you're asking. So the Homeless and Housing Fund, which is this pot of money that we're providing a list, or recommending a list of projects, my understanding is that because we understand that housing does end homelessness, there is an opportunity to use this fund for housing projects as long as it's directly related to housing this population. So, there is an opportunity here for us to do that with this fund. There is another separate pot of money, which I will be coming to this Council separately on, but it's called the Affordable Housing Production Fund. That is specifically to provide funding for affordable housing projects, not specifically related to homelessness. Did that answer your question? MS. VILLEGAS: Yeah, I think yeah, that does encompass it a little bit better. MS. KUNZ: Okay. MS. VILLEGAS: Thank you for answering that for me. MS. KUNZ: Okay. MS. VILLEGAS: Thank you, Chair Inaba. CHR. INABA: Thank you. Bringing it back then to Hilo, any other questions, discussion? All right. Just in the interest of transparency, at the next reading can we get a copy of all of these one-page abstracts that were submitted from eligible, I guess for the 30 because you folks provided us 16? So, if we can just get the other 14,just for those who were not funded; and if we could also get the budget sheets for all 30 applications that were submitted? MS. KUNZ: Okay, no problem. CHR. INABA: When we did put out the RFPs, did we have a limit on how much or how many applications an organization could submit for? MS. KUNZ: You know, this first round, we really wanted to see what was in the environment, and we had no idea, so we did not cap funding amounts, or number of applications, or anything like that. Page 33 LAAC-5 March 7,2023 CHR. INABA: Okay. And then, for the three that were partially funded, were those the three, in terms of ranking, towards the bottom of the list, how did we determine that partial funding for those three? MS. HIROTA: This was a committee decision to look at all of the funding—all of the proposals, and then look really in-depth into the budget that was proposed and the outcomes, and then made a concerted decision as to what would be appropriate. And then also, provided the nonprofit the opportunity to either accept partial funding or reject it in its entirety, and both immediately accept it, and we adjusted their budgets. CHR. INABA: Got it. Let's see, you mentioned the 15 percent administrative cap. When the applications were submitted, nobody requested more because that was an understanding, or for those that were awarded, were there adjustments that needed to be made if they requested more than 15 percent for administrative fees? MS. HIROTA: No application exceeded 15 percent. That was part of the requirement. CHR. INABA: Okay. With that then, I guess—and I had a conversation with Administrator Kunz yesterday,just as we look forward to the coming years of this funding going out, hoping to get it I mean, we all know our own grant-in-aid is need of improvement and it's been around awhile. So for this one,just hoping to see now that we have this RFP process kind of established if we can see funding the RFPs maybe even going out before the fiscal year starts, once we know what the revenue is going to be to fund that program, so we can get the money out to our nonprofits earlier in the fiscal year, and that way we're not necessarily always having perhaps a random start to the contract time. Because I know we have it for one year, but this time the one year starts maybe in April, May versus you know, if we put out an RFP in July, we're going to have another one year. So eventually, and I hope that this funding can continue to support these services for our community, but just like us, to kind of move to get just to get our system together with the fiscal year. MS. HIROTA: In total agreement. This being the first year of funding, became available July 1st, and then we were charged with developing a process, the strategic roadmap, so needed to get all of that in process. I have to acknowledge my team: Dennis Kauka, Junior, who is sitting behind me; and Keiko Mercado, because it was all hands on deck, put pressure on them to get this out. I think they did an excellent job in planning all of the events leading up to today, and then moving forward. Page 34 LAAC-5 March 7,2023 As I said earlier, as a team, you know, we reflect upon our work daily. As to how we can improve, we have lots of notes to ourselves, even as we went through the process as to what changes we can make moving forward. Until the budget is moving forward and we have a good number, and the nod from our Finance Director that we can go out with an estimated amount, that is our plan. We whiteboard this thing out, and drove us a little bit crazy about the contracts and the timing, but how do we get it back into sync, as close as possible, because it will be at one point managing multiple-year contracts. CHR. INABA: Perfect. I think I heard you Council Member Villegas; I'll be with you shortly. MS. VILLEGAS: Just real briefly. CHR. INABA: One last thing, hang on. MS. VILLEGAS: Yeah. CHR. INABA: I know for Housing, this year the $1.5 million was for our own administrative cost, and there was a—what was the other part, for other contracts? MS. HIROTA: So there's the $7.5 million that we're awarding, a little over $1.5 million that's the balance, right, to get closer to the $9.4 million. So the balance—so we used to support three of our emergency shelters on the island, that we're losing funding because they were being funded through CARES Act (Coronavirus Aid, Relief and Economic Security), and that federal funding was ending, and so to ensure those shelters continue, we did an RFP, and there's funding three shelters up through June 30'h with this fund. We also entered into contracts; one for the Strategic Road Map, and to work with our grants manage to purchase a grants management software, so we're paying a portion of it with other—we're paying a portion with the Homeless and Housing Fund, and it's being co-shared with other funding. Our data management contract, the technical assistance contract, to help with our capacity building and community practice. Then admin—and I will tell you that the County admin. is the smallest percentage of it all, yeah. CHR. INABA: Got it, thank you. As we look forward to the next fiscal year, I didn't get a chance to review that line item yet, but are you folks anticipating to take about that amount every year off of the total? MS. KUNZ: Yeah, well we are going to work by the direction of the Finance Director, but she has suggested that we utilize the $9.5 million in planning for Fiscal Year 2023-204, so that's what you're going to see in the budget, with the Page 35 LAAC-5 March 7,2023 understanding that there may be an adjustment. So, we're going to move forward with planning on that amount. CHR. INABA: So, sorry. No, my question is MS. KUNZ: Oh, I'm sorry. CHR. INABA: If we are assuming that the total is going to be $9.5 million for next year, is your office anticipating to have $1.5 million reserved for your own administrative cost every year, and that we're not going to be awarding out the full, or close to the full $9.5 million? MS. HIROTA: So I think for this year, there were a lot of start-up costs, right? And so when we enter into contracts with the data management organization, these are 12 months, which will roll into the next fiscal year. So we're not going to be the cost that we're incurring upfront, under year one, anticipate it's not going to be as high, and then we'll be in a better position to put up more money in programs versus admin. I mean, we're very cautious—conscientious to ensure that the bulk of the money is going out into the community. CHR. INABA: Perfect. Thank you. Okay, so I just want to remind you that at Council reading if we can get all of those abstracts and the budget sheets for all applications submitted. I'm going to Ms. Villegas real quick, and then bring it back here, Council Member Villegas. We're going to wrap this up because we have some folks waiting outside for the next committee. MS. VILLEGAS: No worries. I was just going to say I'll go ahead and hold off and save my other questions or concerns for next reading. I yield. CHR. INABA: Thank you, Council Member Villegas. Council Member Lee Loy. MS. LEE LOY: Thank you, Chair, and thank you for the latitude. You know, and following Mr. Inaba's train of thought and hearing loud and clear there are a lot of start-up cost, what would be really great is to measure ourselves back, which I also heard, right? We're learning a lot. So when we place the cap on admin. cost for programs, right, for people coming to ask for that money, maybe there's some formula that we as a County can get to, right? If we're putting a cap on them for 15 percent, maybe our cap should be eight-and-a-half, right, so more of that money goes out. Just food for thought as we get better with this program. I think we really want to get a lot of these monies into program. As this evolves, it will all be built in over time, too. So,just something to reflect on, yeah. MS. HIROTA: Just to clarify, yes. Page 36 LAAC-5 March 7,2023 MS. LEE LOY: Yeah. MS. HIROTA: We want to hold ourselves at the same standard, if not higher, to our nonprofits. MS. LEE LOY: Yeah. MS. HIROTA: Because truly, they do the hard work out there in the community. So a large portion of the $1.5 (million)went to support shelters. MS. LEE LOY: Thank you. Thank you, Chair. CHR. INABA: Thank you. With that, there is a motion to forward Resolution 61-23 to the Council with a favorable recommendation. Mr. Clerk, a roll call, please. Vote on Res. 61-23: The motion to recommend adoption of Res. 61-23 was (Approved) carried by the following roll call vote: Ayes: Committee Members Evans, Galimba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Lee Loy, and Chair Inaba—8. Noes: Committee Member Villegas — 1. Absent: None. Excused: None. CHR. INABA: Can I please have a motion to adjourn? Page 37 LAAC-5 March 7,2023 ADJOURN- There being no further business, at 3:43 p.m., Ms. Lee Loy moved to adjourn MENT: the meeting. Seconded by Mr. Kaneali`i-Kleinfelder and carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. CHR. INABA: Mahalo everyone. Approved: _ Mr. 4 Mr. Holeka Goro Inaba, Chair (Date) Legislative Approvals and Acquisitions Committee HI/na Page 38