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HomeMy WebLinkAboutMIN FC 2023/07/25 (2022-2024) Committee on Finance 15th Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii July 25, 2023 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 9:01 a.m., in the Council Chambers, Hilo, by Mr. Matt Kaneali`i-Kleinfelder, Chair. ROLL CALL: Present: Mr. Matt Kaneali`i- Kleinfelder, Chair Ms. Michelle M. Galimba, Member Mr. Holeka Goro Inaba, Member (via videoconference from Kona) Ms. Ashley L. Kierkiewicz, Member(came in later) Ms. Heather L. Kimball, Member Ms. Rebecca Villegas, Member (via videoconference from Kona) Absent& Excused: Ms. Cindy Evans, Vice Chair Ms. Jenn Kagiwada, Member Ms. Susan L. K. Lee Loy, Member STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: (There were none.) CHR KANEALI`I-KLEINFELDER: Okay, let's get right to business then. Mr. Clerk, let's go to Communications,please? COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 12.14: REPORT OF FUND TRANSFERS AUTHORIZED: JUNE 1 — 15, 2023 From Controller Kay Oshiro, dated June 20, 2023. FC-15 July 25,2023 Vote on Comm. 12.14: Ms. Kimball moved to close file on Comm. 12.14. Filed Seconded by Ms. Galimba and carried by the following voice vote: Ayes: Committee Members Galimba, Inaba, Kimball, Villegas, and Chair Kaneali`i-Kleinfelder—5. Noes: None. Absent: Committee Members Evans, Kagiwada, Kierkiewicz, and Lee Loy —4. Excused: None. CHR KANEALI`I-KLEINFELDER: Communication 13.14, please? Comm. 13.14: REPORT OF CHANGE ORDERS AUTHORIZED: JUNE 1 — 15, 2023 From Finance Director Deanna Sako, dated June 20, 2023, transmitting the above report pursuant to Section 2-12.3 of the Hawaii County Code. Motion to Close File: Ms. Galimba moved to close file on Comm. 13.14. Seconded by Ms. Kimball. CHR KANEALI`I-KLEINFELDER: Council Members, any discussion on the measure? Okay, hearing none. Ms. Strance, I have a question for you, a procedural question. Okay, Ms. Strance, so we had a very lengthy conversation about change orders in our last Council Meeting with Mr. Benner. So, my question for you is, when we are approving these change orders, let's just go the other way actually, sorry. If we, because we're closing file on the communication, but we're being made aware of the change orders at the same time, we don't really have a process to say yes or no to the change orders as they come up. They're being done elsewhere, correct? (Note: At this time, Corporation Counsel Elizabeth Strance came forward to address the members of the Committee.) MS. STRANCE: Elizabeth Strance, Corporation Counsel. When you say, "we" is your question, does the Council have the authority to review change orders? CHR KANEALI`I-KLEINFELDER: Yeah. Because we discussed the change orders and, you know, the wide range of the effect on taxpayers, and we don't really have a mechanism to see them before we are passing them. So, I found that interesting. So,just process wise, what are your thoughts? MS. STRANCE: Well, I think in order for projects to proceed, there has to be a certain amount of latitude given to the contractors and the County to accommodate within certain parameters. So, my understanding is that within certain parameters, the department, and the contractors address matters. Page 2 FC-15 July 25,2023 The broader question you asked that was raised by Auditor Benner was some sort of evaluation or an evaluation being made that, you know, some more work can or should be done at the front end of contracts to anticipate the expense of contracts. I think that there are some questions about when does a change order become an amendment to the contract or a supplemental contract. That's not a conversation I'm prepared to have right now, but if it's something that the Council is familiar with, then I'd be happy to meet with the Department of Finance. Then, we could put together some sort of presentation to you and maybe involve a department like DPW (Department of Public Works)to walk through what the process would be. But I mean with some contracts, for example they're executed in year-one and then, you know, you're into year-three, let's say, and you haven't anticipated the rise in gas prices or supply chain delays which increase the costs. So, within that framework, I think if you want to have a broader discussion about that, I'd be happy to coordinate it and work with you on the content that you would like. But I'm not prepared to talk about it ina vacuum right now. CHR KANEALI`I-KLEINFELDER: Okay, yes, let's do that. Just given Mr. Benner's audit. MS. STRANCE: Yeah, I found that interesting as well. CHR KANEALI`I-KLEINFELDER: Then, what the comments were from DPW, and the different people that were at the meeting. I think it would be good to have an overall discussion on that and see if there's any need for changes or anything. MS. STRANCE: Good enough. CHR KANEALI`I-KLEINFELDER: But, yeah, appreciate that answer. Thank you. MS. STRANCE: Sure. CHR KANEALI`I-KLEINFELDER: Okay, any further discussion? Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. I'm glad you brought that up. I think what the audit from Mr. Benner's office revealed that there's really no way to track this online. So, as Finance sort of shifts to a new system for finances, rather than our offices individually tracking projects as these change order occur, it would be really great if one of the functions of Finance is to show, in real-time, the status of projects and where we are budget wise as well as implementation. Page 3 FC-15 July 25,2023 Because had the audit not occurred, we would have been just going off of this feeling that things were off-track, over-budget, you know, way beyond the timeline. So, I look forward to the presentation from Judge Strance and seeing how we can resolve the issues that Auditor Benner brought up on the audit. Thank you, I yield. CHR KANEALI`I-KLEINFELDER: Thank you. Then, I mean very obviously, please let the record reflect that Ms. Kierkiewicz has joined us. Kona, any questions? MR. INABA: No. CHR KANEALI`I-KLEINFELDER: Okay, mahalo. Okay, with that Mr. Clerk, we do have the motion to close file on Communication 13.14 on the floor, members all in favor? Vote on Comm. 13.14: The motion to close file on Comm. 13.14 was carried Filed by following voice vote: Ayes: Committee Members Galimba, Inaba, Kierkiewicz, Kimball, Villegas, and Chair Kaneali`i-Kleinfelder–6. Noes: None. Absent: Committee Members Evans, Kagiwada, and Lee Loy –3. Excused: None. CHR KANEALI`I-KLEINFELDER: Moving on to—hold on one second. Let's take Bill 55,please? BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Change Order As directed by the Chair and with no objection from the Council Members, the of Business: following item was taken out of order: Page 4 FC-15 July 25,2023 Bill 55: AMENDS ORDINANCE NO. 23-50, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2024 Increases revenues in Federal Grants —High Intensity Impact Grant account ($27,100); and appropriates the same to the High Intensity Impact Grant account. These additional funds would be used by the Hawaii Police Department for overtime, travel, training, services, and equipment needed for operations to investigate drug related cases. Reference: Comm. 360 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Ms. Kimball moved to recommend passage of Bill 55 on first reading. Seconded by Ms. Galimba. CHR KANEALI`I-KLEINFELDER: Council Members, discussion on the bill? We do have a member from our Police Department joining us today, if there is any discussion. Okay, hearing none, mahalo for being here this morning. Thank you very much for your time. Mr. Clerk, motion is on the floor. Members, all in favor? Vote on Bill 55: The motion to recommend passage of Bill 55 on (Approved) first reading was carried by the following voice vote: Ayes: Committee Members Galimba, Inaba, Kierkiewicz, Kimball, Villegas, and Chair Kaneali`i-Kleinfelder—6. Noes: None. Absent: Committee Members Evans, Kagiwada, and Lee Loy —3. Excused: None. CHR KANEALI`I-KLEINFELDER: And let's proceed back to our resolutions. Return to Order The Chair directed the Committee to return to the order of business. of Business: Page 5 FC-15 July 25,2023 ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 201-23: AUTHORIZES THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Allows for the receipt of$10 million which would be used to support the planning, design, and construction cost of the Kukuiola Assessment Center and Emergency Shelter in North Kona. Reference: Comm. 358 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Ms. Kimball moved to recommend adoption of Res. 201-23. Seconded by Ms. Galimba. CHR KANEALI`I-KLEINFELDER: We do have members from OHCD, Office of Housing and Community Development, online. Council Members discussion before I go to the department? Okay, seeing no discussion, OHCD, are you guys there? Okay, I'm not seeing anyone from the department. Council Members, how do we feel about moving this to Council without discussion, any thoughts? MS. KIMBALL: I'm fine with forwarding the resolution forward to Council. MS. GALIMBA: Me too. CHR KANEALI`I-KLEINFELDER: Okay, mahalo, Council Member Kimball. Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you. I too, am fine to move this forward. It's, you know, a significant resource to support this project, and I do want to take a moment to mahalo nui Senator Schatz's Office, who worked really hard to coordinate getting these funds to our County. So, mahalo nui to Senator Schatz and his team. Chair, I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Council Member Kierkiewicz. I do think our members from the Office of Housing and Community Development are online for our Zoom ability. If you missed it—is that Sharon? (Note: At this time, Office of Housing and Community Development Specialist Sharon Hirota came forward to address the members of the Committee.) MS. HIROTA: Aloha, Sharon Hirota, County of Hawaii Office of Housing. Page 6 FC-15 July 25,2023 CHR KANEALI`I-KLEINFELDER: Aloha Sharon, thank you for joining us. Just for your reference, the Council Members have discussed being okay with moving this forward, if you weren't online to join us today. So given that, if you have any comments, please go ahead. MS. HIROTA: No comments. Just requesting a favorable action in regard to acceptance of these funds to support the housing project. So, appreciate it. CHR KANEALI`I-KLEINFELDER: Mahalo Sharon. Okay, back to any Council Members who may have discussion or questions for Ms. Hirota. MS. VILLEGAS: I have a quick question, Chair. CHR KANEALI`I-KLEINFELDER: Okay, Council Member Villegas, go ahead. MS. VILLEGAS: Great. Thank you, Ms. Hirota. Thank you for being here today. Just a quick question. Are these funds coming with specific uses on what they must be spent on, as far as, does it specify just the construction part or is it working with an organization to manage the facility? What are the parameters associated with this $10 million? MS. HIROTA: So, it's Federally funded money that's coming from the U.S. Department of Housing and Urban Development. Our proposal is purely for the vertical construction of the site and to complete the construction of the project, not for the operations or management of it. We would need to secure other funding to support it. MS. VILLEGAS: For those things. Okay, fantastic. In prior conversations, I believe this $10 million had been mentioned. So, is this a new $10 million or is this that same $10 million, and this is now the final execution of the processing of the funds into our accounts? MS. HIROTA: Yes, this is the same $10 million that we've talked about that we've secured. We are now working with HUD (U.S. Department of Housing and Urban Development) in the contracting process. So, part of it is accepting the funds now as we work through the contracts. MS. VILLEGAS: Fantastic. Thank you for helping to clarify that. Appreciate this and really looking forward to Kukuiola moving forward and coming to fruition. So, thank you for your work on this. MS. HIROTA: Sure, thank you. CHR KANEALI`I-KLEINFELDER: Mahalo, Council Member Villegas. Council Member Galimba, go ahead. Page 7 FC-15 July 25,2023 MS. GALIMBA: Thank you, Chair. Because I'm new I haven't heard discussion about this. Could you give a really quick overview of this assessment center, like what it will be doing at capacity, that kind of thing? MS. HIROTA: So, Kukuiola is located off of Kealakehe Parkway, kind of kitty-corner across the West Hawaii Civic Center. At full buildout, the Kukuiola Emergency Shelter and Assessment Center will comprise of 16 emergency shelters; 48 affordable permanent housing units with support. We're also looking at up to 46 safe overnight parking stalls. It'll have—we're looking at building about a 2,000 square-foot assessment center. They'll have shared community restrooms and shower facilities for both those that participate in the safe parking, as well as separate facilities for those that are at the emergency shelters. It'll also include a 1,400 square-foot community center and shared kitchen space; office space for case management services and other resources to be delivered onsite; manager units and open space for community-building activities. So, we started the mass grading and construction of the shared road that would be shared between our proposed project and the State's Hawaii Housing Finance Development Corporation's future housing project. MS. GALIMBA: Thanks, that sounds really great. So, what is the acreage of this site? MS. HIROTA: So, total acreage that will be leased over to the County is approximately a little over 17 acres. So the current project, six of those 17 acres that we'll have, hopefully, future development. MS. GALIMBA: Okay, so this $10 million would be for like the first phase of it, which would be like a six-acre site. Then the total will be 17? MS. HIROTA: So, the $10 million will cover, yes, the first phase which is the 16 emergency shelters; the overnight parking space, the community centers, the restroom, shower facilities, community kitchen and gather space; and the office. MS. GALIMBA: One more question. So, what other funding sources are you looking at for this phase and the total project? MS. HIROTA: So, total project; the predevelopment and initial degrading and road constructions were covered from Ohana Zones funding. We were able to secure fundings from the State through their DURF or Dwelling Unit Rental Fund, and then we were also able to secure County CIP (Capital Improvement Project) funding. So, it's a combination of various sources to support the project. Page 8 FC-15 July 25,2023 MS. GALIMBA: Thank you very much for that background, I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Council Member Galimba. Okay, hearing no further discussion, mahalo Ms. Hirota for being on this morning and providing that background for us. Council Members we do have the motion on the floor, all in favor? Vote on Res. 201-23: The motion to recommend adoption of Res. 201-23 was (Approved) carried by the following voice vote: Ayes: Committee Members Galimba, Inaba, Kierkiewicz, Kimball, Villegas, and Chair Kaneali`i-Kleinfelder—6. Noes: None. Absent: Committee Members Evans, Kagiwada, and Lee Loy —3. Excused: None. Res. 202-23: AUTHORIZES THE ACCEPTANCE OF A GRANT AWARD OF $200,000 FROM HAWAII COMMUNITY FOUNDATION TO SUPPORT FINANCIAL EMPOWERMENT SERVICES Funds would be used to support no-cost financial and ownership counseling provided by a certified United States Department of Housing and Urban Development counseling service provider. Reference: Comm. 359 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Ms. Kimball moved to recommend adoption of Res. 202-23. Seconded by Ms. Galimba. CHR KANEALI`I-KLEINFELDER: We had Ms. Hirota joining us previously. Thank you again for being on this morning. Could you give us some background on Resolution 202, please? MS. HIROTA: Sure, in 2020, so close to three years ago, the County launched its Financial Empowerment Services in partnership with Hawaiian Community Assets and Hawaii First Credit Union. But the initial funding we just received, implementation funds from the cities for Financial Empowerment Fund, as well as County and Hawaii Community Foundation. We are gearing to provide the services to our community and we're fortunate enough that Hawaii Community Foundation has stepped in to provide continued financial support in the operations, in order to continue the delivery of these services to the community members. So, they are committing $200,000 for this current fiscal year. Page 9 FC-15 July 25,2023 CHR KANEALI`I-KLEINFELDER: Thank you very much, Ms. Hirota. Council Members questions? Council Member Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. Mahalo nui, Sharon, for being here. I just wanted to take a moment to just shine a light on the incredible work that you did during the pandemic to secure support from the Bloomberg Foundation, is my recollection where you had pitched this project to them and I'm so grateful that you were able to do that and work with a number of community partners. It's had such a tremendous impact. If folks would like to access, you know, services, programs that are coming out of the Financial Empowerment Center, who do they go to? Is their website with more information? How do we share this information with our constituents? MS. HIROTA: So, there's two ways because we have it currently on our Office of Housing website as a link to services and allows them to click on the link, make an appointment or they can work directly with our partner, Hawaiian Community Assets, to get services. They are out in the community; they were at the Puna revitalization event earlier this month sharing information about their programs. So, we're excited to have the team on board and providing the valuable services. MS. KIERKIEWICZ: Thank you, and just to clarify, it's Hawaiian Community Assets, their team that are mobilizing around the island to connect with folks in the various communities? MS. HIROTA: Correct. They have physical offices in both Hilo and Kona, but also work virtually with individuals and meet people where they're at. MS. KIERKIEWICZ: Yeah, and you did mention they were in Pahoa a couple weeks ago, and I know that they go all over the island to different community events. So, it's great they can take all this information on the road. MS. HIROTA: Yes. MS. KIERKIEWICZ: Right on. Thank you again, Sharon, really appreciate it. Chair, I yield. CHR KANEALI`I-KLEINFELDER: Thank you, Council Member Kierkiewicz. Any further discussion on the measure? Hearing none, we have a motion on the floor to approve Resolution 202-23 and forward to Council with a favorable recommendation. Council Members, all in favor? Page 10 FC-15 July 25,2023 Vote on Res. 202-23: The motion to recommend adoption of Res. 202-23 was (Approved) carried by the following voice vote: Ayes: Committee Members Galimba, Inaba, Kierkiewicz, Kimball, Villegas, and Chair Kaneali`i-Kleinfelder—6. Noes: None. Absent: Committee Members Evans, Kagiwada, and Lee Loy —3. Excused: None. CHR KANEALI`I-KLEINFELDER: Mahalo, Ms. Hirota, appreciate your time. MS. HIROTA: Thank you. Mahalo. Bill 53: AMENDS ORDINANCE NO. 23-50, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2024 Appropriates revenues in the Federal Housing and Urban Development— Community Project Funding Kukuiola account($10,000,000); and appropriates the same to the following Housing and Urban Development—Community Project Funding Kukuiola programs: Program account($9,500,000) and Administration account($500,000). Funds would be used to support the planning, design, and construction cost of the Kukuiola Assessment Center and Emergency Shelter in North Kona. Reference: Comm. 358 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Ms. Kimball moved to recommend passage of Bill 53. Seconded by Ms. Galimba. CHR KANEALI`I-KLEINFELDER: Any discussion Council? Hearing none, the motion is on the floor. Any opposed? Any in favor? Vote on Bill 53: The motion to recommend passage of Bill 53 on (Approved) first reading was carried by the following voice vote: Ayes: Committee Members Galimba, Inaba, Kierkiewicz, Kimball, Villegas, and Chair Kaneali`i-Kleinfelder—6. Noes: None. Absent: Committee Members Evans, Kagiwada, and Lee Loy —3. Excused: None. Page 11 FC-15 July 25,2023 CHR KANEALI`I-KLEINFELDER: Moving on to Bill 54, please? Bill 54: AMENDS ORDINANCE NO. 23-50, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2024 Appropriates revenues in the Hawaii Community Foundation—Financial Empowerment Services (Private) account($200,000); and appropriates the same to the Hawaii Community Foundation—Financial Empowerment Services —Program account. Funds would be used to support no-cost financial and ownership counseling provided by a certified United States Department of Housing and Urban Development counseling service provider. Reference: Comm. 359 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) Motion to Approve: Ms. Kimball moved to recommend passage of Bill 54. Seconded by Ms. Galimba. CHR KANEALI`I-KLEINFELDER: Any discussion Council? Hearing none, Ms. Hirota, are you on the line still? MS. HIROTA: I am. CHR KANEALI`I-KLEINFELDER: Beautiful, thank you. You know, one follow-up. I forgot to ask this on the companion measure. These Financial Empowerment Services/Centers that we're going to be kind of helping is it Hawaiian Community Assets move forward? MR. HIROTA: They're our current contractor that does provide services. We are in the process because our contract is ending, and we are in the process of procuring for continued services. CHR KANEALI`I-KLEINFELDER: Okay, that's actually a kind of nice segway into my next question then. Something I've been concerned about, and the more I've talked to members in the community and watched our kids and our adults. Empowering them financially is great, but the financial education piece could do a tremendous amount of assistance in our community from teaching our keiki how to use and to utilize funds, and understand credit, and all of those things that lead to empowering them to have a house or get loans in the future. I've said this before, so I'm kind of saying it again, if there's any way for us to incorporate that, not just empowerment, but financial education into our schools or at any point before they turn 18. Some of those kids not being able to write a check. Page 12 FC-15 July 25,2023 If we can get that into our education system or link up with partners or create some kind of a connection between our school system and those graduating kids or younger and teach them how to deal with the financial world, so that when they're becoming adults, we've already empowered them to do what they need to do. So, if that is a possibility, great. If not,just put that in your memory banks and store it and use it when you need it. But if we can put these funds towards the use like that, I think we could do some wonders for our community. MS. HIROTA: Yes, I recall our conversation. So, we'll continue to work on our partners to find the connectivity back to the Department of Education. CHR KANEALI`I-KLEINFELDER: Okay, and I've reached out to a number of our principals before, and they're very interested, but there's also some hurdles to be had when it comes to, how do you get this education in front of the kids? What does it look like, and how do you turn that into a curriculum? How in- depth is that curriculum? So, there's definitely some, not some obstacles, but some stairs to climb when it comes to getting this in front of our keiki. Okay, thank you for being open today, I appreciate it. MS. HIROTA: Yeah, thank you. CHR KANEALI`I-KLEINFELDER: Thank you. Seeing no further discussion, mahalo, Council Members, for the leeway. We do have the motion on the floor to approve Bill 54 and forward to Council with a favorable recommendation. All in favor? Any opposed? Vote on Bill 54: The motion to recommend passage of Bill 54 on (Approved) first reading was carried by the following voice vote: Ayes: Committee Members Galimba, Inaba, Kierkiewicz, Kimball, Villegas, and Chair Kaneali`i-Kleinfelder—6. Noes: None. Absent: Committee Members Evans, Kagiwada, and Lee Loy —3. Excused: None. CHR KANEALI`I-KLEINFELDER: That brings us to the end of our agenda. Page 13 FC-15 July 25,2023 ADJOURN- There being no further business, at 9:31 a.m., Ms. Kimball moved to adjourn MENT: the meeting. Seconded by Ms. Galimba and carried by the following voice vote: Ayes: Committee Members Galimba, Inaba, Kierkiewicz, Kimball, Villegas, and Chair Kaneali`i-Klemfelder—6. Noes: None. Absent: Committee Members Evans, Kagiwada, and Lee Loy—3. Excused: None. CHR. KANEALI`I-KLEINFELDER: We are adjourned. It is 9:31 (a.m.) and we'll be taking up our Governmental Operations and External Affairs Committee at 10:30 a.m. • Approved: Ala 6/2i 1. Mr. Matt Kaneali`i- leinfelder, Chair (Date) Finance Committee MK/dt Page 14