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HomeMy WebLinkAboutMIN FC 2023/04/04 (2022-2024) Committee on Finance 7th Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii April 4, 2023 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 10:30 a.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 Mr. Holeka Goro Inaba, Member Ms. Jenn Kagiwada, Member Ms. Ashley L. Kierkiewicz, Member(came in later) Ms. Heather L. Kimball, Member Ms. Susan L. K. Lee Loy, Member Ms. Rebecca Villegas, Member STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: (There were none.) CHR KANEALI`I-KLEINFELDER: Okay, let's go to the top of the agenda, Mr. Brown. COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 12.7: REPORT OF FUND TRANSFERS AUTHORIZED: FEBRUARY 16 —28, 2023 From Controller Kay Oshiro, dated March 9, 2023. Vote on Comm. 12.7: Mr. Inaba moved to close file on Comm. 12.7. Filed Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. FC-7 April 4,2023 Comm. 162: TRANSMITS THE ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE FISCAL YEAR JULY 1, 2021 TO JUNE 30, 2022, AND A PRESENTATION PREPARED BY N&K CPAs, INC. From County Auditor Tyler J. Benner, dated March 10, 2023. Motion to Close File: Mr. Inaba moved to close file on Comm. 162. Seconded by Ms. Lee Loy. CHR KANEALI`I-KLEINFELDER: Joining us today, we do have Mr. Benner. Thank you for being here. Council Members, before we do discussion, Mr. Benner, if you could provide us a brief overview, and we'll go from there. (Note: At this time, County Auditor Tyler J. Benner came forward to address the members of the Committee.) MR. BENNER: Yeah, good morning, Council. My name is Tyler Benner. I'm the County Auditor, and I'm here today to introduce Chad Funasaki and Andrew Ho from N&K CPA. They're going to be providing a brief presentation of the Annual Comprehensive Financial report for the period ending Fiscal Year June 2022. CHR KANEALI`I-KLEINFELDER: Thank you all for being here this morning. Go ahead when you're ready. (Note: At this time, Audit Principal Chad Funasaki and Assurance Services Division Senior Manager Andrew Ho, both of N&K CPAs, Inc., came forward to address the members of the Committee.) MR. FUNASAKL Okay, hi. Good morning, Chair, Council Members. Yeah, my name is Chad Funasaki, N&K CPAs, and with me, I have Andrew Ho. Yeah, we submitted a slide-deck, and yeah, it's on the screen now,just to give a brief overview of the results of the financial audit. So, we have a short agenda here. (Note: At this time, Mr. Funasaki and Mr. Ho provided a PowerPoint presentation to the members of the Committee. For viewing of the subject presentation, please see the DVD copy of the meeting proceedings on file in the Clerk's Office or the video archives online from the County's homepage at www.hawaiicounty.gov. A hard copy of the presentation is made a part of the record, see Comm.162.1.) MR. HO: That's all we have, I guess, in terms of the required communications. Chad, do you just want to open it up to any questions or comments? MR. FUNASAKL Yeah, I'll open it up to the Committee. Relatively short slide-deck, it's just a real general overview and communications. We're happy to address any questions that Committee Members may have at this time. Page 2 FC-7 April 4,2023 CHR KANEALI`I-KLEINFELDER: Thank you very much for the presentation. Going to your questions from the Council Members. Ms. Evans, go ahead. MS. EVANS: Thank you. My question has to do with your comments that you received information from third parties for, I believe, the pension liability. I'm not sure if it was for, the what, closing the landfill liability, but you mentioned some liabilities and using third parties. How do you audit a third parry's work? MR. FUNASAKL As it relates to the OPEB (Other Postemployment Benefits) and the pension I believe, that estimate is determined by an actuary. We actually do—we do procedures over the work that they do. We actually look at their credentials if they're reputable. I believe every entity or governmental department that has this pension liability, I believe they use the same information from the same actuary, so it's not just done for the County, it's done for State departments, as well. So yeah, that's basically what we do, I mean we don't I mean we do limited procedures over what they do, but I mean we're not actuaries ourselves. We need to rely on other computations, but we do look at if they're reputable, you know, so those type of things. But yeah, we obviously need to rely on they're called specialists, right? We need to rely on them. The landfill, that estimate is determined by management. That is not done by a third parry. MS. EVANS: I'm sorry, who determines the landfill liability? MR. FUNASAKL I'm sorry? MS. EVANS: I'm sorry, who would determine? You said management. MR. FUNASAKL Well, the claims on Judgements, I'm thinking is management. I think the landfill, Andrew, it'sI don't know. MR. HO: I believe—so while he's looking at that, I think just to add to what Chad said, about the pension and the OPEB, I believe all of the state agencies and the counties have there's a third-parry specialist, so there's an actuary, but then actually I think those parties, so like ERS (Employees Retirement System) and EUTF (Employer-Union Health Benefits Trust Fund), I think they engage like other audit firms to do the work, so I think there's actually some of that work is done by like one firm for all of the different agencies and counties, locally. So it's not—there's work that we do, but then there's also like an actual audit report that's provided by those other firms for that. MR. FUNASAKL Yeah, that's correct. MS. EVANS: The reason I ask is I believe sometimes the actuary is, you know, you can be really conservative or liberal, and the percentages that you believe you're going to get in your investments. But anyway, you know, I appreciate the Page 3 FC-7 April 4,2023 comments. I am curious about the landfill, and the risk insurance, and life. There must be something in here about the risk we take, and you put a dollar value to that. I'm kind of wondering if that's kind of how you figure the number. Is it based on an amount we put towards risk? MR. FUNASAKL Yeah, I believe management utilizes a contractor for that landfill amount. MR. HO: Yeah, and so there are certain costs that they have estimated for like closure-cost themselves and post-closure based on the information they have, and then from there they'll kind of make certain estimates. So I think like, as an example, I believeI think, the Hilo Landfill had closed recently, but prior to that, that was based on that was estimated yeah, there's different components of the estimates. So there's like a total estimate, you know, starting from the initial closure, so you like you have design and the different phases, and there's actually like a breakdown of like post-closure that they kind of pull together. And I believe they might actually utilize like a they might use contractors to help, and that's kind of used to help determine some of the amounts. MS. EVANS: Okay, those are the only two that I picked up as third-parry. Was there another? Did I miss something? I thought maybe those were the only two I heard you say were provided by third parties. MR. HO: Yeah. Yeah, that's probably accurate. I think the two that are primarily a third-parry is going to be the post, the OPEB, and then the pension. MS. EVANS: Okay. MR. HO: But a lot of the others are based upon like management's estimate MR. FUNASAKL The lost reserves for claims. MR. HO: Yeah. MR. FUNASAKL And judgments. MS. EVANS: Right, claims and judgments. Okay. MR. FUNASAKL Right. MS. EVANS: Okay, thank you. Thank you, Chair. CHR KANEALI`I-KLEINFELDER: Thank you, Council Member Evans. Just to let everyone know, Deanna Sako, our Finance Director, is in a training meeting this morning and wasn't able to join us. We do have Hamana Ventura in our Kona Chambers and Mr. Benner here as well, but Ms. Sako is unable to be here. She can probably help with some of these questions, as well. Looking around the room for Page 4 FC-7 April 4,2023 any other questions. Seeing none. Thank you very much, gentlemen. Appreciate the overview. Very comprehensive. Mr. Benner, mahalo for your time this morning. Do you have anything to add? Okay, with that, we do have the motion on the floor to close file on Communication 162. Council Members, all in favor? Vote on Comm. 162: The motion to close file on Comm. 162 was carried Filed by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 81-23: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR LEASE OF REAL PROPERTY FOR THE COUNTY OF HAWAII POLICE DEPARTMENT WAREHOUSE IN KEA`AU, DISTRICT OF PUNA Authorizes the Mayor to enter into a five-year lease agreement with an option to extend for two additional five-year terms with Milo Storage LLC, for approximately 7,440 square feet of warehouse space. Reference: Comm. 163 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Mr. Inaba moved to recommend adoption of Res. 81-23. Seconded by Ms. Lee Loy. CHR KANEALII-KLEINFELDER: We do have joining us today Sergeant Nelson Acob. Thank you. Thank you for being here this morning. Thank you for waiting. Would you like to give us just a brief summary, and then we'll go to questions if there are any? (Note: At this time, Police Sergeant Nelson Acob came forward to address the members of the Committee.) MR. ACOB: Good morning. We are seeking to acquire more warehouse space with theI guess we can probably attribute this to population growth. We have a lot more police incidents, and with that, we have a lot more vehicles that we store as evidence. We don't have a minimum time that we keep these vehicles. We're kind of at the mercy of our judicial system, and a lot of these cases don't go to trial right away. I've seen cars that we have still from the 80s in our warehouses. Page 5 FC-7 April 4,2023 Those are, of course, unsolved murders, so those we're not going to get rid of, possibly the development of more breakthrough types of evidence recovery. But we do have a lot of vehicles from, you know,negligent homicide type cases, which is your vehicle accidents, with deaths and stuff. Many of those we keep until those go to court. Yeah, that's pretty much at a standstill a lot of times. That's beyond our hand. I mean, we have two warehouses presently, and we just cannot keep up with trying to get them released. We've been able to try to make as much space as we can. We only have at this time one evidence custodian, who is on the Hilo side, on the east side. We have two in Kona. But our concern right now is the east side, which is where this is the main repository, which is on the east side because we do have vehicles that come from Kona as well, in some cases. When they have vehicles that are long-term, they send them here. So, we get the burden of both sides. I think that's all unless you folks have more questions. CHR KANEALI`I-KLEINFELDER: Okay, thank you very much Sergeant. MR. ACOB: You're welcome. CHR KANEALI`I-KLEINFELDER: Any discussion from the Council Members? Okay, seeing none. MR. ACOB: Oh, thank you. CHR KANEALI`I-KLEINFELDER: Yeah, thank you, sir. Thank you very much. Seeing no further discussion on the resolution. Council Members, all in favor of forwarding Resolution 81-23 to Council with a favorable recommendation? Vote on Res. 81-23: The motion to recommend adoption of Res. 81-23 was (Approved) carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. Page 6 FC-7 April 4,2023 Res. 82-23: AMENDS RESOLUTION 388-22 AUTHORIZING THE OFFICE OF THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE UNIVERSITY OF HAWAII Seeks to increase the funding amount for the Kuleana Health project by $247,500 for a total of$447,500. Reference: Comm. 164 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Mr. Inaba moved to recommend adoption of Res. 82-23. Seconded by Ms. Lee Loy. CHR KANEALII-KLEINFELDER: Council Members, we do have joining us today, Mr. Adams. Director, would you like to join us, and maybe give us a brief overview if you would be so kind? (Note: At this time, Research and Development Director Douglass Adams came forward to address the members of the Committee.) MR. ADAMS: Aloha, Chair, Members, I appreciate the opportunity to provide a brief overview. This has to do with the two-year $3 million grant that we received from US Health and Human Services regarding the advance in health literacy grant that we received in 2021. As a part of that grant, there is an evaluation portion, and in that evaluation portion, the University of Hawaii at Hilo was identified as the sole source receiving a little less than $100,000 for their work in the first year and then in the second year. As a part of the budget, they identified the Hawaii Health Information Exchange (HHIE). As a part of their work, we are asking to increase the budget. They're looking to expand the efforts with HHIE, where that would actually expand the connections with not just the partners that have been part of this program from the beginning, but also into positions, offices, and local government opportunities through dashboard pieces. The funding is all contained within the grant. There was no County funding associated with this, so it's just a mix—it's a redirection of funding from the $3 million grant. CHR KANEALII-KLEINFELDER: Thank you very much, Director. Just for everyone's information, we did receive a positive testimony from Bonnie Irwin, Chancellor at the University of Hawaii at Hilo, in regards to this resolution, as well. Council Members, discussion or questions for Mr. Adams? MR. ADAMS: I'm sure it won't be this easy next week, thank you. Page 7 FC-7 April 4,2023 CHR KANEALII-KLEINFELDER: Take it while you can. Thank you very much, Director. Thanks for being here this morning. Okay, motion is on the floor to forward Resolution 82-23 to Council with a favorable recommendation. All in favor? Vote on Res. 82-23: The motion to recommend adoption of Res. 82-23 was (Approved) carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. Res. 83-23: ADOPTS THE 2023 COUNTY OF HAWAII ANNUAL ACTION PLAN FOR THE COUNTY OF HAWAII COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND AUTHORIZES THE MAYOR OF THE COUNTY OF HAWAII TO EXECUTE AND SUBMIT THE ACTION PLAN AND ALL OTHER RELATED DOCUMENTS TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT The 2023 County of Hawaii Annual Action Plan describes the projects and activities that will be executed by the County to provide decent housing, suitable and safe living environments, and accessibility for disabled individuals to public facilities using the County's share of Community Development Block Grant program funds. Reference: Comm. 165 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Mr. Inaba moved to recommend adoption of Res. 83-23. Seconded by Ms. Galimba CHR KANEALII-KLEINFELDER: We do find this a little bit funny this morning, after having our Housing Agency meeting yesterday. Council Members, discussion on the resolution? Council Member Kierkiewicz. MS. KIERKIEWICZ: Chair, because we're meeting as the Council in our legislative capacity, I did want to invite Royce Shiroma, who has been leading the CDBG (Community Development Block Grant)program with the Office of Housing and Community Development for nearly 40 years now to give us an overview of the process, the monies that we're getting from the federal government, and all of the work that you and your team do to reach out into the community, understand needs, get RFPs (Request for Proposals), score them so that we're at this point where we are able to award nonprofits around Hawai`i Island. Royce, could you give us an overview? Thank you for joining us today. Page 8 FC-7 April 4,2023 (Note: At this time, Hawaii Community Development Specialist Royce Shiroma came forward to address the members of the Committee.) MR. SHIROMA: Thank you. You guys all can hear me? MS. KIERKIEWICZ: Perfectly. MR. SHIROMA: Okay, thank you. Sorry,just a slight correction, I wasn't doing this for 40 years, but this program was around for 40 years, so that's just for clarification. Our overview of this is that this 2023 Action Plan that we are bringing forth through this resolution is a one-year plan and it is for HUD (US Department of Housing and Urban Development)to be able to fund to award the program funds for the CDBG, Community Development Block Grant funds, and provide the County to have all these projects that we have selected through the RFP process. These projects I want to go through real briefly. It includes funding West Hawaii Domestic Abuse Shelter Phase 2, which is renovating the facilities at their West Hawaii Shelter; HCEOC (Hawai`i County Economic Opportunity Council), providing upgrades to their kitchen to become a certified kitchen and provide food for the community in Hilo and East Hawaii. Also, the Hamakua Youth Community Center Phase 2 improvements, which we'll be doing, renovating the old Okada Hospital in Honoka`a Town, in which they'll be utilizing it as a youth community center. Also, the Hale `Ohana Domestic Abuse Shelter, which is the Hilo Shelter. We'll be doing improvements to the shelter there. Mental Health K6kua, we'll be renovating their Hilo Hale residence, and will be providing funding for a purchase of a van for transportation services. Finally, we'll be purchasing two fire brush trucks at the Ocean View Volunteer Fire Station, and the Hawaiian Acres Volunteer Fire Station in Kona. These CDBG funds will provide much-needed assistance to the community, especially those in low- and moderate-income areas. Thank you. MS. KIERKIEWICZ: Thank you for that, Royce. Our County's allocation of a little over $2.7 million, is this what we can count on year over year to support the CDBG program? Does it ever change? MR. SHIROMA: Yes. We have been receiving approximately $2.6 (million) on an average, and we also add, what we say a"program" income,"which iswe have a program income of about$100,000 estimate. So, we're looking at maybe $2.7 million. I'm sorry, that was $2.6 million. Yeah, $2.7 million every year. That's about the average that we get. Page 9 FC-7 April 4,2023 MS. KIERKIEWICZ: That's awesome. And how many applications did you receive this year? MR. SHIROMA: This year, we received approximately 16 applications, couple that were not eligible. We rank and rate those that were eligible; found that some didn't meet a threshold of 50 percent of the total score. For those remaining, we ranked it in a priority ranking and we funded these seven projects up to whatever dollar amount that we were allocated. There were three that weren't funded, however if more funds become available through the CDBG program, we'll be funding those in the future, if needed. MS. KIERKIEWICZ: That's great. So if the federal government knocks on your door and says, "Royce, we've got more money, CDBG money." You can take a look at that list of folks that scored. MR. SHIROMA: Yes, yes. MS. KIERKIEWICZ: But didn't quite make it this first round, and award their projects if there's more money available. MR. SHIROMA: Yeah, we will be working down the list. MS. KIERKIEWICZ: That's great. Thank you, Royce, to you and your team for all of the hard work that you guys put in to make sure that our community partners are able to access this funding. I can see a few folks here that were awarded CDBG funds last year, so it's nice to know that you folks are helping organizations, you know, successfully navigate this process but also reach the internal milestone so that they can secure more funding, and successfully and fully realize their project. So, thank you. Appreciate it. MR. SHIROMA: Thanks. MS. KIERKIEWICZ: Chair, I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Council Member. Any further discussion? Okay. Mr. Shiroma, thank you for your time this morning. Appreciate it. Sorry, so you were with the department for 40 years, correct? I just want to clarify this. MR. SHIROMA: No. Yeah, the program was around for like 40 years. CHR KANEALI`I-KLEINFELDER: How long have you been there? MR. SHIROMA: I was this is actually my 30'h year working. CHR KANEALI`I-KLEINFELDER: Wow. Page 10 FC-7 April 4,2023 MR. SHIROMA: But I haven't been working with this program, I kind of moved around a lot. CHR KANEALI`I-KLEINFELDER: Well, we applaud your continued efforts to help the community, and just appreciate your time within the County, thank you. MR. SHIROMA: Thank you. CHR KANEALI`I-KLEINFELDER: Okay, seeing no further discussion, Council Members. Mahalo for your time, Mr. Shiroma. We do have the motion on the floor to forward Resolution 83-23 to Council with a favorable recommendation, all in favor? Vote on Res. 83-23: The motion to recommend adoption of Res. 83-23 was (Approved) carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Bill 23: AMENDS CHAPTER 19, ARTICLE 10, SECTION 19-71, OF THE HAWAII COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO REAL PROPERTY TAX EXEMPTIONS Amends subsection (d) by adding a requirement that the property owner has had a home exemption in at least five out of the ten years preceding the taxpayer's claim in order to be entitled to the exemption for taxpayers 60 years of age or over to be applied on applications received on or after January 1, 2025. Reference: Comm. 96 Intr. by: Ms. Lee Loy Postponed: February 21, 2023 (Note: There is a motion by Ms. Lee Loy, seconded by Ms. Galimba to recommend passage of Bill 23 on first reading.) CHR KANEALI`I-KLEINFELDER: Council Member? MS. LEE LOY: Thank you. At our last meeting,we had a lot of discussion with Finance Director Sako along with Deputy Corporation Counsel Keyra Wong, and since that time, myself, Finance Director, and Corporation Counsel have had a lot Page 11 FC-7 April 4,2023 of discussions about two different pathways to address this. At the end of the day, this particular bill, and the language and the title, actually does not fit for future amendments, so I will withdraw this bill and come forward with some of the other work-product that myself, Deanna Sako, and Corporation Counsel is working with. Thank you. Withdraw Bill 23: Ms. Lee Loy announced the withdrawal of Bill 23. CHR KANEALII-KLEINFELDER: Thank you very much. Just to clarify, there's no motion needed? No further discussion? We're done. Moving on to the next item, correct? MR. BROWN: Yes. If you could,just for the record, again state and recognize that Bill 23 has been withdrawn. Yeah, so there's more discussion if you recognize the withdrawal. It's been withdrawn, and we can move forward. CHR KANEALII-KLEINFELDER: Okay, recognizing that Bill 23 has been withdrawn by the Council Member. We'll move on to the next agenda item. Bill 36: AMENDS ORDINANCE NO. 22-63, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2023 Appropriates revenues in the Federal —Block Grant account($2,680,506) and the Block Grant—Program Income account($100,000); and appropriates the same to the following accounts: West Hawaii Domestic Abuse Shelter Phase 2 Improvements ($252,615), Hawaii County Economic Opportunity Council — Certified Kitchen Conversion ($580,001), Hamakua Youth Community Center Phase 2 Improvements ($650,000), Hale `Ohana Domestic Abuse Shelter Phase 2 Improvements ($162,000), Mental Health K6kua—Hilo Hale Residence Improvements ($175,000), Ka`u and Puna Volunteer Fire Station Brush Truck Acquisition ($370,000), Mental Health K6kua—Van Transportation Acquisition ($74,000), and Administration, Planning and Fair Housing ($516,890). Reference: Comm. 165 Intr. by: Mr. Kaneali`i- Kleinfelder(B/R) Motion to Approve: Mr. Inaba moved to recommend passage of Bill 36 on first reading. Seconded by Ms. Lee Loy. CHR KANEALII-KLEINFELDER: Council Members, any discussion? We do have Mr. Shiroma joining us, as well. Yes, this is the companion bill to our previous resolution. Just to ask, Mr. Shiroma, since you're still with us, did you touch on when the opening date is for the new applications for the Community Development Block Grants? Page 12 FC-7 April 4,2023 (Note: At this time, Hawaii Community Development Specialist Royce Shiroma came forward to address the members of the Committee.) MR. SHIROMA: For the 2024 CDBG application, we're looking at September, however, usually we start in July. We start sending out letters to various departments, and you guys, the Council Members, and trying to get a grasp on what type of projects we anticipate getting for the 2024 funding. CHR KANEALII-KLEINFELDER: Okay. MR. SHIROMA: But for the public, we're going to put out the proposal in September. CHR KANEALII-KLEINFELDER: Okay, and that is open to nonprofits or MR. SHIROMA: Nonprofits and government agencies. CHR KANEALII-KLEINFELDER: Okay. Not for profits, correct? MR. SHIROMA: Yes. It's the requirements of the CDBG program, only nonprofits, I think, government agencies. CHR KANEALII-KLEINFELDER: Beautiful. Thank you very much for that information. Seeing no further discussion from the Council. We have the motion on the floor to forward Bill 36 with a favorable recommendation, all in favor? Vote on Bill 36: The motion to recommend passage of Bill 36 on (Approved) first reading was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. Bill 37: AMENDS ORDINANCE NO. 22-63, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2023 Increases revenues in the Fund Balance From Previous Year account($3,500,000), and appropriates the same to the General Excise Tax Mass Transit Other Current Expenses account. Funds would be used to cover additional costs related to fixed route operations. Reference: Comm. 166 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Page 13 FC-7 April 4,2023 Motion to Approve: Mr. Inaba moved to recommend passage of Bill 37 on first reading. Seconded by Ms. Galimba. CHR KANEALI`I-KLEINFELDER: Discussion? Council Member Lee Loy. MS. LEE LOY: I guess I just don't know who to ask this of. You know, I'm really curious as to how this sum of money ended up in fund balance, and if there was anybody to explain this for us. CHR KANEALI`I-KLEINFELDER: Ms. Sako is in a training this morning, and you know our director is that's a great question, Ms. Lee Loy. MS. LEE LOY: Chair, if I could recommend maybe we table this matter to the end of the agenda. I know we have one more item, but maybe we can reach out to the Mayor's office or someone. I know Managing Director Lee Lord has shadowed Mass Transit office. Unless, Judge Strance? Vote on Motion Ms. Lee Loy moved to table Bill 37 to the end of to Table: the agenda. Seconded by Ms. Galimba and carried by (Approved) the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. CHR KANEALI`I-KLEINFELDER: Moving on to Bill 38. Bill 38: ADOPTS A PAY PLAN FOR PERSONS EMPLOYED BY THE COUNTY OTHER THAN THOSE WHOSE PAY IS OTHERWISE PROVIDED FOR, DESIGNATES PAYROLL PERIODS, PAY DAYS, PRESCRIBING REQUIREMENTS WITH RESPECT TO OFFICIAL FIDELITY BONDS, AND REPEALS ORDINANCE NO. 22-51 AND ALL AMENDMENTS THERETO, SAID ORDINANCE TO BE KNOWN AS THE SALARY ORDINANCE OF 2023 Establishes rates of compensation for appointed employees in the Legislative Branch and the Office of Housing and Community Development, the County Physician, Student Helpers, and Senior Community Services Aids for various County agencies, and reflects the current minimum wage of$12 per hour through December 31, 2023, and the minimum wage increase to $14 per hour effective January 1, 2024. Reference: Comm. 167 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Page 14 FC-7 April 4,2023 Motion to Approve: Mr. Inaba moved to recommend passage of Bill 38 on first reading. Seconded by Ms. Lee Loy. CHR KANEALI`I-KLEINFELDER: Council Members, discussion on Bill 38? Council Member Inaba, go ahead. MR. INABA: Yeah, thank you. I just want to point out, I think we can move this forward. I think for the Council Aide position we're adding grades K and L, and then the Communication 167, we're not saying that we're adding that. So, if we can just correct that before it comes to Council,just to reflect that we're adding two more steps for Council Aide, based on comparing it to the 2022 Salary Ordinance. This is from Finance, so perhaps if someone from Finance can just make that amendment. And that's all, in support of this bill. Thank you. CHR KANEALI`I-KLEINFELDER: Okay. Thank you, Council Member Inaba. Council Member Galimba, go ahead. MS. GALIMBA: I guess this also would be something that Finance would but I was wondering why weI mean, we took out A and B, and then we added K and L, so I don't know why we didn't just, you know, start A at the bottom. That was my question on that, so related to your question. Very minor things, but I think it's significant. Thank you. CHR KANEALI`I-KLEINFELDER: Go ahead, Mr. Henricks. MR. HENRICKS: Good morning, Committee on Finance. Jon Henricks, County Clerk. If I'm interpreting or understanding your question, is why not just start at A and change the numbers? Is that what you're asking? That would be great in an ideal world; but as it takes effect on July 1, currently each appointed staff member is assigned a letter grade, and then it wouldn't be accurate. So, we would have to, you know, basically temporarily separate employment and redo paperwork. So, there's really not a great time to recalibrate these steps to where they would start at A. It essentially would have to occur at the start of a new Council term, when all appointed employees are reappointed anyway. So we might look at doing that to clean up this Salary Ordinance. MS. GALIMBA: Okay, otherwise we might run out of alphabets. MR. HENRICKS: Double A, double B, Double C, long after we're all gone, hopefully. CHR KANEALI`I-KLEINFELDER: Okay, thank you, Council Member. Any further discussion? Director, do you have anything to add to the conversation? Okay. Okay, we do have a motion on the floor to forward Bill 38 to Council with a favorable recommendation, all in favor? Page 15 FC-7 April 4,2023 Vote on Bill 38: The motion to recommend passage of Bill 38 on (Approved) first reading was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. CHR KANEALI`I-KLEINFELDER: We are back to Bill 37. Vote on Motion Ms. Lee Loy moved remove Bill 37 from the table. to Remove from Seconded by Mr. Inaba and carried by the following Table: voice vote: (Approved) Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. CHR KANEALI`I-KLEINFELDER: Okay, back to Bill 37. Council Member Lee Loy. MS. LEE LOY: Thank you, Chair. I'll listen to the will of the body. I really am just really curious about this amount. We're here in Committee you know, I'm open to any suggestions on getting a response from the Administration on this matter, whether it's move it up, hold it, pick it up later on this afternoon. Looking for some guidance. I yield. CHR KANEALI`I-KLEINFELDER: Council Members? MS. KIERKIEWICZ: Chair, I'm fine moving this forward to Council. The B-52 does provide a bit of an explanation around the need for this transfer related to Bargaining Unit wage increases. I would like to invite the Administration to be prepared to, you know, answer our questions at Council. But, I am prepared to move this forward, out of Committee. Thank you, I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Council Member. Okay, seeing no further discussion. We do have the motion on the floor, all in favor? Page 16 FC-7 April 4,2023 Vote on Bill 37: The motion to recommend passage of Bill 37 on (Approved) first reading was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. MR. BROWN: Could you restate the motion real quickly, Chair, if you don't mind? CHR. KANEALI`I-KLEINFELDER: Sorry, yes. Motion is to forward Bill 37 to Council with a favorable recommendation, and you had nine members in favor, none opposed. MR. BROWN: Thank you very much, Chair. CHR. KANEALI`I-KLEINFELDER: That does bring us to the end of our agenda. ADJOURN- There being no further business, at 11:14 a.m., Mr. Inaba moved to adjourn MENT: the meeting. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None, Absent: None. Excused: None. CHR. KANEALI`I-KLEINFELDER: We are adjourned, it is 11:14 a.m. Approved: I T) Mr. Matt Kaneali`i lein`elder, Chair (Date) Finance Committee MK/na Page 17