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HomeMy WebLinkAboutMIN FC 2024/02/20 (2022-2024)Committee on Finance 29' Session West Hawaii Civic Center 74-5044 Ane Keohokdlole Highway, Building A Kailua-Kona, Hawaii February 20, 2024 CALL TO The regular meeting of the Committee on Finance was called to ORDER: order at 10:00 a.m., in the Council Chambers, Kailua-Kona, by Ms. Cindy Evans, Acting Chair. J.-geloww'A"I Present: Ms. Cindy Evans, Acting Chair Ms. Michelle M. Galimba, Member Mr. Holeka Goro Inaba, Member Ms. Jenn Kagiwada, Member Ms. Ashley L. Kierkiewicz, Member Ms. Heather L. Kimball, Member Ms. Susan L. K. Lee Loy, Member Absent & Excused: Mr. Matt Kdneali'i- Kleinfelder, Chair Ms. Rebecca Villegas, Member STATEMENTS The Acting Chair directed the Committee to proceed to the next order of FROM THE business, Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: The following individuals registered to speak and came forward when called by the Acting Chair: Susie Osbourne: Res. 438-24 (Comm. 728), in support. Leila Kealoha: Res. 438-24 (Comm. 728), in support. Amedeo Markoff: Res. 438-24 (Comm. 728), in support. Debra Smith: Res. 438-24 (Comm. 728), in support. Rachel Nack: Res. 438-24 (Comm. 728), in support. Change Order As directed by the Acting Chair and with no object from the Council Members, of Business: the following items were taken out of order: FC-29 February 20, 2024 STATEMENTS The Acting Chair directed the Committee to proceed to the next order of FROM THE business, Statements from the Public on Agenda Items. PUBLIC ON RES. 438-24: The following individuals registered to speak and came forward when called by the Acting Chair: Sue Champeny: Res. 438-24 (Comm. 728), in support. Makanaohaililani Waikiki: Res. 438-24 (Comm. 728), in support. Res. 438-24: AUTHORIZES THE PLANNING DEPARTMENT TO AWARD FUNDS TO VARIOUS NONPROFIT ORGANIZATIONS THROUGH THE K71LAUEA RECOVERY GRANT PROGRAM Provides $3,293,400 in grant funds to various nonprofit organizations to provide relief, recovery, mitigation, and long-term resilience for disaster damages, losses, and suffering caused by the 2018 Kilauea eruption. Reference: Comm. 728 Intr. by: Mr. Kdneali'i-Kleinfelder (B/R) Motion to Approve: Ms. Kierkiewicz moved to recommend adoption of Res. 438-24. Seconded by Ms. Lee Loy. ACTING CHR. EVANS: Any discussion? Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. Mahalo nui to our Puna community for coming out; for continuing to do the hard work to help our community heal and recover and get to a place of thriving and resilience following the eruption. It's really hard to believe that we're at the five -and -a -half -year mark. It has been a very long journey. In 2020, our office introduced an ordinance to establish the Kilauea Recovery Grant Program, and this was really intentional. We wanted to make sure that our community had the opportunity to access the $20 million that was provided by the State Legislature to aid in eruption recovery. We did this because at the end of the day, we know that our community knows best. So, we wanted to offer an opportunity for them to design and implement solutions that would help them recover and help our community get to a place of healing. There was an initial round of $3.7 million to 18 different projects in 2019, and today, through this resolution, we are going to be making a second round of investments in our community of $3.3 million to 16 projects. These organizations are going to be providing service to lower Puna residents and communities again impacted by the eruption. Page 2 FC-29 February 20, 2024 I'm going to invite our Recovery Officer Douglas Nam Le up to kind of talk to some of the specifics about who was awarded. But just to give you a sense of the kinds of projects that are being supported with this money; road restoration, renovations of farms and agriculture facilities, cultural programs, educational facilities, virtual resilience hubs, disaster preparedness, animal rescue, and workforce development. I have to say that the level of response that was received to the second round of applications was pretty overwhelming. Thirty-eight applications totaling more than $10.6 million in requests. Just really underscores the fact that there is still a significant need of continued support for our Puna community. While I was not directly involved in the grant review or decision -making process, I do want to acknowledge that every single applicant really demonstrated merit of their initiatives. And I've asked the Recovery Team to explore other avenues to help those that received partial funding or no funding at all, to ensure that they do get support to help bring their ideas to life. Douglas, I just want to take a moment to mahalo you, Patti Pinto, and your entire Recovery Team for the hard work that you all have done to design and implement this program. I know that it was not easy, so I just wanted to take a moment to thank you. If you could, I just have a few questions for you. If you could just share with our community, what the process was for intake review and scoring of the applications and then identifying which projects met the thresholds? And what the process was then, for prioritizing funding because I know that of those that you did fund, not everybody received the total amount that they requested. (Note: At this time, Planning Department, Kilauea Recovery Officer Douglas Nam Le came forward to address the members of the Committee) MR. LE: Good morning, Members of the Council and Chair. Douglas Nam Le with the Planning Department. You know, we're really here today to seek your support on this resolution, to be able to move forward with our program. Really appreciate the commentary and perspective shared both by folks who testified this morning, as well as those who have submitted testimony ahead of today's meeting. To address some of the questions that Council Member Kierkiewicz has raised, you know, we wrote out this portion of the program, the second round of the Kilauea Recovery Grant Program, in conjunction with our other grant -making program Puna Strong earlier this Fall. We followed a very similar model, as other grants in the County are awarded. You know, really operating under the Page 3 FC-29 February 20, 2024 framework of our procurement laws, but also adapting them similar to how we award resources that the Grant -In -Aid program entails and adhere to. We put out an open call for applications. As Council Member Kierkiewicz walked through, we saw a pretty significant interest in terms of volume of applications and the total amounts requested. And within the timeframe of receiving applications, we got everything back from the folks. There were a handful that submitted late, but the 38 that we ended up reviewing generally met the basic eligibility criteria that were spelled out in the Code. From there, our staff panel did independent reviews and scoring against the same set of criteria for all 38 applicants. Those scores were then compiled, and they were averaged out of a total score of 100. From there, there was kind of a natural break in terms of the more top -ranked proposals that came out of the review process. I think out of the 100 points, that average score that was probably about 78 or so. And even of those final proposals, the total requests should they all be awarded, was well over $6 million that we were facing. So, what did we do next? We looked at the top grouping of proposals, and we started to review every single one at a kind of cost -basis. So, you know, what did they propose in their budgets? How did that match up against questions reviewed around feasibility, scoping, and timing? We went through a very deliberate and thorough process that did lead to additional time that was required to get to these final recommended amounts. I do want to recognize that, you know, the interest in the program really demonstrated the need that it's out there. You know if we have an opportunity to do another round. Then, a lot of the feedback and conversations we had with the applicants and members of the community, we will definitely look at and incorporate. For those that have requested time with us to talk about their applications, successful or not through this process, we made time to share information from the scoring as well. So, even if the outcomes are not what folks were wanting, we are trying to look ahead too, in terms of how to score folks through future grant application processes that they would want to pursue. MS. KIERKIEWICZ: Thank you, Douglas, for providing that insight. You know, one of the things that you touched upon was building capacity of our nonprofit organizations that are serving in community. And I know that recovery is specifically focused on lower Puna and the eruption. But I wonder what other support we could be leveraging from other County departments, like Research and Development, which is the arm of the County that often works within securing grants. Could they be a potential partner that we could tap to help those that didn't get all the funding or didn't get any funding at all, to maybe securing something? Page 4 February 20, 2024 MR. LE: You know, while the Recovery Team is part of the Planning Department, in some respects, we were kind of birth from Research and Development. You know, the team that was working there in immediate response to the eruption, was with R&D (Research and Development) and even across administrations, we worked very closely together till this day. You know, once we were through this process and were able to get these contracts going, I'm happy to kind of make time and work with our colleagues at Research and Development. Especially, in terms of grants that they are working secure countywide or even, you know, any upcoming rounds of grantmaking that the department may undergo. So, yes, always happy to collaborate and think about the projects that we encounter through this application round for additional sources of funds. MS. KIERKIEWICZ: Dougles, just a couple more questions. You know, beyond writing a solid grant, I think that is something that we can absolutely help our community members build a stronger muscle. And I wonder if your department might have any funding available for some training and technical assistance to say, hey, maybe do some board training, or maybe to write a small business plan? I don't always think it's the grant that folks need, but is there a way that we can take a more customized approach to helping folks that don't need a hand-out necessarily, but a hand -up? MR. LE: Absolutely, we've been working on that, and there's still opportunity to do more. You know, we've been thinking about our two grant -making programs. And our Puna Strong, which is a cohort model, you know, specifically with those groups that are funded —I mean, this past year, we were also offering different training opportunities for nonprofit organizations across Puna, including those that are not in the Puna Strong group. And we want to continue doing that. As part of our U.S. Department of Agriculture (USDA) funded Rural Placemaking Project, we actually did put out an RFP (Request for Proposal) for these kinds of technical services. I have to say that we did not get responses to that when we put it out late last year, but our next step here is to kind of figure out through other means of procurement with these Federal USDA funds, how we can get some of these services in place. Those services were designed both to provide not only workshops and that type of training support, but also dedicated hours to work one-on-one with a subject expert that we would bring on to work with nonprofits in our community to try to further their goals around fund development, organizational development, and human capacity. So, you know, please know that is kind of the next step that we are working towards. I think for those projects that have either a secondary primary economic development impact, you know, our recent announcement, the County in conjunction with Ho`oulu Lahui, having an opportunity to be a part of the nationwide Economic Recovery Corps, I have a fellow on board who not only Page 5 FC-29 February 20, 2024 brings his own expertise, but also you know, the view for the next 30 months is to tap the national network of folks who could be in this program. And the other — sites are around the country, including in Honolulu and CNMI (Commonwealth of the Northern Mariana Islands) to be able to also be a resource. MS. KIERKIEWICZ: Okay, last question, elephant in the room. You've got $20 million from the State in flexible funding. We've spent $3.7 million, first round; $3.3 million, this round. I can't recall how much Puna Strong, but we have maybe about $10411 million left. I hate sitting on money. Definitely want to spend it. I see your face there. I see a little reaction. But I can see the desire to also ensure that we have enough to continue to fulfill the promises that we made in terms of restoring our infrastructure. So, I just want to ask that question. What are we doing with that extra money? And if Public Works is able to design and restore infrastructure within budget, which I really hope they can, is it possible that we are able to free up this additional money for another round of grant funding? MR. LE: Sure. So, you know, the facts are pretty clear among the folks who have been kind of close with us in this work. The $20 million grant from the State Legislature, you know, we've all been able to work together to make it pretty unprecedented, $9 million, plus investment through our two grant -making programs, either expended or with the support of this resolution. A mutual commitment of those funds. The last time I was before Council and we were working through the Code changes, we did talk pretty explicitly about some of the obligations that we know we need to fulfill in terms of the restoration of roads, waterlines, and park improvements across the different sources of recovery funds. FEMA (Federal Emergency Management Agency) matching with you know, State support to make these projects whole. I think from the very beginning, the eruption response and as we have gotten to launch recovery, we've been doing our best to work through what we know and what we know we don't know. And to try to really make plans and anticipate. I am happy to report that the Department of Public Works and its partner through Water Supply did put out the bid for the first segment of road restoration from Four Corners on (Highway) 137, and I know it is a step in the process. But I think it is an important signal on us to be able to get closer to what the final cost will look like out of the bidding process for each of the projects. You know, should the remaining $20 million not be needed, any portion of it, to make these important infrastructure investments complete and to be able to fulfill those commitments, our team working with folks in Administration are open to really looking at kind of how those dollars that we may not need for infrastructure restoration could be best put to use for our recovery efforts. Page 6 February 20, 2024 MS. KIERKIEWICZ: Thank you so much, Douglas. I'm just going to ask my colleagues very humbly, one last time, for your support on this. It does break my heart that we are not able to fully fund or fund everyone. Everyone is so worthy, and I think you hear the testimony of folks that —they're still living in this state of limbo, like their lives have not fully been recovered. But there's only so much the County can do. We can do a lot through this resolution today, but what I'm hearing from our Recovery Officer is, there is still a longstanding commitment by the County and my office to continue helping our eruption survivors, and our whole Puna community recover. So, thank you for that, Chair. I yield. ACTING CHR. EVANS: Any further discussion? Member Lee Loy. MS. LEE LOY: Thank you. First of all, I actually would like to have Susie (Osbourne) come forward, and I just want to maybe even do a disclosure, because I see some of the funding going to Kua O Kala and specifically, Ho`oulu. And I know that we have a lot of kumu there, and I just want to clarify who your Papa`malao Kumus are, because I think I have a relationship there, and I just want to be able to disclose for the dais that there may be some family members working at Kua O Kala. (Note: At this time, Susie Osbourne of Ho`oulu Lahui, Kua O Ka La, came forward to address the members of the Committee.) MS. OSBOURNE: So, the Ho`oulu Lahui is the grant recipient, and Kua O Ka La will be a direct partner and beneficiary, all facilities with charter schools operate that way. So, I'm not sure if there would be a direct conflict of interest. And if you're speaking about our Pre-K Kumu, is that what you're referring to, an employee? MS. LEE LOY: Probably, yes. MS. OSBOURNE: Okay, I think Pomai is related to you in our Pre-K in Nd'dwale. But again, I'm not sure. I guess the experts would know if that's given that the grant recipient is Ho`oulu Lahui, it would actually be a conflict. can't answer that. MS. LEE LOY: Thanks, Susie. You know, just for the dais, I mean this definitely was done through a clearing house kind of way outside of us. So, just want a ruling from our Chair that I can continue to have this discussion and vote on this matter. ACTING CHR. EVANS: Yes, I'm okay. MS. LEE LOY: Great, thank you. Next, I actually wanted to take the time to really thank Council Member Kierkiewicz and our Recovery Officer Douglas Le. We were just at our National Association of Counties and had an opportunity to Page 7 FC-29 February 20, 2024 attend a number of FEMA training. And I'm not going to lie, Douglas and Ashley are rock stars. To FEMA, specifically, Colt (Hagmaier) and Bob or Robert (Pesapane), the Directors of Recovery in FEMA, they are really leaning in hard as they update a lot of their FEMA rules that are being published shortly here in March, and how actually Kilauea Recovery is the new model on how FEMA wants to, not only disburse dollars but help recover community. Then the long pathway of mental health dollars that come at the back end. So, I just wanted to let my colleague, Ms. Kierkiewicz and Douglas know that you guys swing a big stick up in D.C. I just had one question in support of this resolution. I was just curious, and I acknowledge that we're never going to have enough money ever when it comes to recovery and Grant -In -Aid. We see it across all of our asks. Curious, if the property took advantage of a buyout program and then was purchased by a new owner, will they be eligible to access these dollars or does that property become, I don't know, for lack of a better description, satisfied? MR. LE: Thanks for the question, Council Member. I'll try to respond in the way that I heard it, but if there's more to get into, don't hesitate to follow-up. For the properties that are being acquired through the County's Buy -Out Program with the U.S. Department of Housing and Urban Development funds, a really important part of that acquisition is deed restriction, that you know, properties bought for buy-out purposes cannot be developed. They might be able to be used for open space uses. But to help answer the question, you know, really, the County doesn't have any intention to sell the properties back or to anyone else, right? There might be some opportunities where either through a use agreement, a license, perhaps even kind of a lease or transfer of title for a specific program use to the benefit of the community, that is a possibility for some of these properties. But I will say, given that the situation of the eruption, that use would be few and far between. And I think it's safe to say that the majority of the properties we have acquired or are working to acquire will remain in County ownership. MS. LEE LOY: Great. That's exactly where I wanted to go, because I just don't —I'm thinking about individuals and/or that lease arrangement where they might not be able to have a larger agricultural program but use this as an opportunity to access funds to help fill out an agricultural program through that lease option. I just want to make sure we're getting to our recovery victims and the ownership of those who truly lost from the very beginning, and that you know, these funds are not being utilized as a business model by more recent developments through a lease. And what I'm hearing you say, Mr. Le, we have a rubric and a metrics on how we score, that really starts with the fundamental piece of, if they were Page 8 FC-29 February 20, 2024 original landowners or property owners. That scoring rubric provides a point system to make sure we are getting dollars to them individually first. You're nodding, but it would be nice with an answer. MR. LE: That is correct, and I think to your question, it is important to recognize that, for the applicants, people in the community who were rewarded funds in this first round and are being considered for awarded funds in the next round, you know, the priority is really serving areas like farms that have not participated in the prior program, per se, right? It's been more isolated areas that folks are looking to return to. So, there's space in between what the buy-out program is doing and what some of these grant funds are going towards. MS. LEE LOY: Thanks Douglas. It was a really proud moment when I got called into that meeting. I think they thought, you know, Ashley and you were also showing up, and I was sad to disappoint our FEMA Director. It was just me, but it was so good to hear such amazing stories of all the great work and the kind of impact both you and Council Member Kierkiewicz are having at a Federal level around this disaster. But also, how it's beginning to architect future recovery across the country. With Lahaina, top of mind, it really is serving as a model. So, thank you. Thank you, Chair, I yield. ACTING CHR. EVANS: Thank you. Any further discussion? Member Inaba. MR. INABA: Thank you, Chair. Just a couple questions. Before getting this resolution before us today, was it your office that verified all of the eligibility criteria in Section 2-137? MR. LE: Yes, it was. Before we review the applications, as part of our panel. MR. INABA: Okay. And then looking at the different organizations and project descriptions, perhaps prior to the next reading, would you be able to kind of more clearly outline which organizations are tapping into it as disaster recovery, and then which organizations are getting it more as that long-term resilience? Because I'm seeing it looking at the Code and those two buckets, and I know some organizations, I'm assuming because they weren't there or had infrastructure in 2018, that they're in this long-term resilience category. But I think it would just help us to further, you know, get a bigger picture of how these funds are being divvied up in those two buckets. MR. LE: Yes, we can provide that. Thank you for the request. MR. INABA: Alrighty, thank you so much. Thank you, Chair, I yield. ACTING CHR. EVANS: Thank you. Member Kierkiewicz. Page 9 FC-29 February 20, 2024 MS. KIERKIEWICZ: Thank you, Chair. I completely forgot until Council Member Lee Loy made the disclosure. I just want to disclose that my son actually is a student at Kua O Kala. Just want to note that for the record he wasn't involved in any of the decision making or the application process. But you know, I seriously want to make that disclosure, and if you have any issues with that, Chair? ACTING CHR. EVANS: No, I think that's fine. Thank you. Okay, seeing no more discussion, I just wanted to thank all the testifiers for coming out today. I want to thank the work of the Planning Department. It's always a heavy lift. There were a lot of applications from what I heard, and I do hope that those that just missed the scoring, the threshold, just missed it or came in late. You mentioned some came in late. I hope that they get maybe some training, or you know, keep the conversation going on with the Planning Department. So, thank you again for all your hard work. So, we have this resolution before us. All in favor? Any opposed? Vote on Res. 438-24: The motion to recommend adoption of Res. 438-24 was (Approved) carried by the following voice vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, and Acting Chair Evans — 7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Villegas — 2. Excused: None. ACTING CHR. EVANS: Okay, we're going to go back to the top of the agenda, thank you. Take that back, we do have someone here in Kona, so I'll take it out of order. And that is, please read in Resolution 437-24. Res. 437-24: CREATES THIRTY-THREE NEW TEMPORARY POLICE OFFICER I POSITIONS FOR THE POLICE DEPARTMENT Establishes additional positions for the Police Department's Recruit Training Pool to allow for the transition and rotation of inbound and existing Police Officer I recruits. Reference: Comm.727 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 437-24. Seconded by Ms. Galimba. ACTING CHR. EVANS: Member Lee Loy, any discussion? Page 10 FC-29 February 20, 2024 MS. LEE LOY: You know, this was advanced by the Administration, so I'll let the Police Department take it away. (Note: At this time, Hawaii County Police Department Major Sherry Bird came forward to address the members of the Committee.) MS. BIRD: Good morning, Chair and Committee Members. Major Bird, recently transferred to the Administration Section of our Police Department. Basically, we're requesting 33 additional temporary position numbers. I had to get a little bit educated myself. So, I'll just explain and it's maybe for just my piece of mind. But currently, our department has 67 temporary positions and those are positions assigned for our police recruits. They get those numbers once they're hired up until they finish successfully our field training program. So, that can take up to 10 months at a minimum. We are projected to hold three recruit classes this year. You know, we're trying to fill all our vacancies as best as we can. We've increased our written and agility testing. We're doing those monthly. So, we're getting, I guess, more frequent applicants rolling in. In our recruit classes, we hope to have between 20 and 30 in each recruit class. Just a little background, currently, we have seven that are in field training right now. We have 19 in a current class that started in November of last year, we have 28 approximately projected to start in the next recruit class come April I". Then in the pool of candidates right now, we have about 17, and that pool is still growing. And they're projected to start in a July class. So, if you do all the math, the 67 gets eaten up pretty quickly. So, the additional 33 would really be helpful, so that we don't have to suspend or put a freeze on our recruiting methods. Thank you. ACTING CHR. EVANS: Member Galimba. MS. GALIMBA: Thanks. I'll be supporting this, and just wanted to congratulate and thank the Police Department. I think our new Police Chief have been working really hard on untangling the knots that were kind of barriers that were keeping the recruitment from happening as quickly as possible. And it's just going to make a big difference in my district, I know, to have more police officers available. And I'm sure other districts as well. So, thanks very much all of you. ACTING CHR. EVANS: Thank you. Member Kagiwada. MS. KAGIWADA: Thank you. Thank you for presenting and being here today. So, just so I understand, you're not actually asking for additional funding with Page I I FC-29 February 20, 2024 this. It's just the actual temporary positions that will move into full-time positions that are already funded, is that correct? MS. BIRD: That's correct. Thank you for that, yes. MS. KAGIWADA: Just for the record, great. Yes, I'll also be supporting and hoping that we can get back, you know, fully staffing our community policing group. I know that they've had to kind of be flexible, as many of you have had to be, and looking forward to you guys continuing to staff up, and appreciate all the efforts. Thank you. MS. BIRD: Thank you. ACTING CHR. EVANS: Thank you. Any further discussion? Okay, seeing none. Well, thank you. Would you do us a favor and send that —when you said 33 here; 17, 11, you gave us numbers. Would you please send that to us so can see where these positions will be, or where they're at in their process of becoming full-time? It'll be nice to see, I'd appreciate that. MS. BIRD: No problem. ACTING CHR. EVANS: Thank you. So, we have a motion the floor, all in favor? Any opposed? Vote on Res. 437-24: The motion to recommend adoption of Res. 437-24 was (Approved) carried by the following voice vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, and Acting Chair Evans — 7. Noes: None. Absent: Committee Members Kdneali'i-Kleinfelder and Villegas — 2. Excused: None. Return to Order The Chair directed the Committee to return to the order of business. of Business: COMMUNI- The Acting Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 16.2: REPORT OF DONATIONS RECEIVED FROM THE DANIEL R. SAYRE MEMORIAL FOUNDATION AS OF JANUARY 2024 From Finance Director Diane Nakagawa, dated February 1, 2024, transmitting the above report pursuant to Resolution No. 468-20. Page 12 FC-29 February 20, 2024 Motion to Close File: Ms. Lee Loy moved to close file on Comm. 16.2. Seconded by Ms. Galimba. ACTING CHR. EVANS: Any discussion? MS. LEE LOY: I see Assistant Chief Okinaka in our Hilo Chambers. Thanks for being here. You know, we're always grateful to the Sayre Foundation but I think you'd be best to speak about all the different donations that's covered under this communication. (Note: At this time, Assistant Fire Chief, Darwin Okinaka came forward to address the members of the Committee.) MR. OKINAKA: Good morning. This specific donation was for travel for two of our personnel. One of our EMS (Emergency Medical Services) Captains and our Chief Pilot to go and visit this EMS Aeromedical Operations in Canada, in Calgary. This operation utilizes this Airbus H145 aircraft, which is another aircraft that is proposed to be donated to the Hawaii Fire Department, County of Hawaii, by the Sayre Foundation. So, they went up there to visit this program and operation just to get an idea on what it takes to operate this type of aircraft. This aircraft will be a dual -engine aircraft, which will be capable of doing medical transports. Not only across our island, but throughout the State. It will go for island -hopping. So, it'll be a supplement to the current air ambulance services that we have here, you know, with private services. So, it was a preliminary visit to kind of get an idea of how the operation is run, basically that's what it was. So, the Sayre Foundation just donated the funds to send two of our personnel up there to visit the place. MS. LEE LOY: Great. Thanks Chief, and thanks again to the Sayre Foundation. Chair, I yield. ACTING CHR. EVANS: Thank you. Members, any other discussion? Seeing none, I'll just mahalo again to the Daniel R. Sayre Memorial Foundation. We have a motion, all in favor? Any opposed? Vote on Comm. 16.2: The motion to close file on Comm. 16.2 was carried by (Filed) the following voice vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, and Acting Chair Evans — 7. Noes: None. Absent: Committee Members Kdneali'i-Kleinfelder and Villegas — 2. Excused: None. Page 13 FC-29 February 20, 2024 Comm. 717: ANNUAL REVENUE REPORT: JULY 1, 2022 — JUNE 30, 2023 From Finance Director Diane Nakagawa, dated January 31, 2024, transmitting the above report pursuant to Section 2-12.6 of the Hawaii County Code. Motion to Close File: Ms. Lee Loy moved to close file on Comm. 717. Seconded by Ms. Galimba. ACTING CHR. EVANS: Any discussion? Do we have anyone from the Administration? Ms. Kimball. MS. KIMBALL: And I see our Finance Director is coming. So, thank you for putting this report together. I know you're required to but appreciate the format of it. In particular, would be the time many of these revenue sources were last changed and their source. I'm noticing for a lot of these fees; they were set a decade or more ago. Some of them, as far back as the 60's. Is there a plan from your department to kind of do any sort of comprehensive review on what needs to be potentially updated with cost of living and inflation, and the cost of services to provide some of these County services on our end? (Note: At this time, Finance Director Diana Nakagawa came forward to address the members of the Committee.) MS. NAKAGAWA: Good morning, Council Members. Diane Nakagawa, Finance Department. So, I think that depends on this revenue report, which covers a lot of different areas. So, I know it'll have to go on a case -by -case basis on what will need to be updated in the various areas. I know in Finance, I think we're looking at a couple areas in the Vehicle Registration and Licensing, and of course, we're continuing to look at Real Property Tax. But the other different areas will be something that each department will have to look at, you know like particularly, Parks and Recreation (Parks and Rec), some of their fees. But it would just depend on which area of revenue we're speaking to. MS. KIMBALL: Okay, the Finance Department as a whole doesn't look over all of these, but really looks to have it bubble up from the departments themselves about where they might need to be adjusted. MS. NAKAGAWA: In those areas, I mean, we do monitor the revenue that's coming in, but for a lot of it, the expertise from the department on what's happening with the fees and structure, we do rely on the departments for their recommendations. MS. KIMBALL: Okay, there were a couple of areas, you know, the registration fees certainly drew my attention, as well as some of the fees around permitting Page 14 FC-29 February 20, 2024 within DPW (Department of Public Works). Then also, I think you mentioned Parks and Rec related fees. I'm going to think about it a little bit more, but I think that there's some of them may just be easier to do than others, which would really be a deeper examination of what it costs the County to provide some of these services and opportunities and what we're actually bringing in. I'd just like to know to what extent we're subsidizing some of these things. My just kind of cursory look, it felt really imbalanced, like some things were subsidizing more than others, and I'm sure there's reasons for that. But that's kind of what I'd like to look at some point. If there's not a comprehensive review from Finance, maybe this is something that can be talked about a little bit with the Budget hearings from each department. How those fees are matching up with the services they're providing. MS. NAKAGAWA: Sure, we can provide that. And we can also help coordinate some of those discussions. But as you mentioned, you know, particularly for Finance, there are some of those areas that we will be looking to bring forward soon in adjusting some fees that haven't been adjusted for a while. MS. KIMBALL: Great. Thank you, Director. I yield, Chair. ACTING CHR. EVANS: Members, any further discussion? Okay, seeing none. I too, when you look at the report and see that's it's been a long time since there's been an adjustment, normally when there is adjustments, do the department heads come to you and talk about it before it gets proposed, or how would the internal process be? MS. NAKAGAWA: Yeah, normally there is a discussion on what will be proposed in any type of adjustment to revenue. ACTING CHR. EVANS: Okay, good. Okay, with no further discussion, Members we have a motion, all in favor? Any opposed? Vote on Comm. 717: The motion to close file on Comm. 717 was carried by Filed the following voice vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, and Acting Chair Evans — 7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Villegas — 2. Excused: None. Page 15 FC-29 February 20, 2024 ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. (Note: Items in this category were taken up previously, out of order.) Res. 436-24: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI -YEAR EMPLOYMENT CONTRACT FOR THE DEPARTMENT OF RESEARCH AND DEVELOPMENT Authorizes the County to enter into a three-year employment contract for an Early Childhood Resource Associate to assist with expanding access to affordable and high -quality childcare and education. Reference: Comm.726 Intr. by: Mr. Kaneali `i-Kleinfelder (B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 436-24. Seconded by Ms. Galimba. ACTING CHR. EVANS: Any discussion? There we go, Director Adams. (Note: At this time, Research and Development Director Douglass Adams came forward to address the members of the Committee.) MR. ADAMS: Thank you, Chair. Thank you, members of the Committee. Appreciate the opportunity to testify on behalf of this resolution and encourage the Committee to forward it to the Council with a favorable recommendation. Truth be told, I would have liked to actually have had the opportunity to do the briefings that are scheduled for later in March prior to bringing this to you because I think it would have been relatively easy to speak about this position after you had heard both the money piece and the early learning resource update. But the fact is that we still need this position as soon as possible, and so I would ask you to favorably recommend this to the Council. This particular position will be a third position in the Early Learning Resource Section. As you know, from the briefing that we provided back in July, an incredible amount that we're trying to do in this particular field around the island. And as we looked at the responsibilities for putting the funding in both the facility's piece, as well as into the professional services areas, it became clear that an additional position was really going to be needed, given the amount of time that our two specialists have right now that they're putting into the program. So, this will start as soon as possible, and then we will be running as quickly as possible both to encumber all of the funding by the end of this year, and then to Page 16 FC-29 February 20, 2024 expend it by the end of 2026. I'm available to obviously answer any questions regarding this as well. Thank you. ACTING CHR. EVANS: Member Kagiwada. MS. KAGIWADA: Thank you. Thank you, Director and thank you for bringing this forward. Appreciate the efforts that you and your team have been making to really delve into how the County can best support the needs of families with young children in our community. If you just very briefly explain what this person will be doing as part of the team. That would be super helpful. And I must apologize to the entire Council and everybody else, there was a clerical error that was not Doug's fault at all, but my office's fault. We had meant to have them come speak earlier and then do the schedules. They weren't able to attend until March now. So, we're looking at March for having them come present to us. But Director, if you could just briefly explain what this position will be doing? MR. ADAMS: Right. Thank you very much, Council Member, and by no means was I casting aspersions. You know, these things, they happen. So, in particular, we're focused on the facilities, and that's really what Angela is looking at. Angela Thomas, our Early Childhood Resource Specialist is looking at the facility piece of this. Then we also have our certification for professional services that we continue to work on as well as the work that we're doing to bring our family and community centers to actually provide opportunities for them to enhance the capacity that they have. This particular position will be helping with that latter piece as well as the professional services element. So, Angela's focus will be particularly on the facilities that we're trying to bring in. Then both Chelsea LaFrance who is in our current position, and then the holder of this position will be working on those professional services and the capacity building in existing family and community center locations. MS. KAGIWADA: Okay, and I know you're probably maybe going to cover this when we hear from you in greater detail. So, these positions all funded by the ARPA (American Rescue Plan Act) funds, correct? And so, we'll be finished after 2026. You talked about building capacity. Are we building capacity to continue some of this work past 2026? MR. ADAMS: To be honest, I think it's a little premature for me to actually speak to that, because I don't have any plans that I feel comfortable showing. But the idea of the County being engaged in this field past 2026, certainly have crossed our minds. Page 17 FC-29 February 20, 2024 MS. KAGIWADA: Okay, alright, I'll save it for when we see you here next month. Thank you so much. I'll definitely be supporting. Thank you, Chair. ACTING CHR. EVANS: Members, any other discussion? Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. I don't think I can be supporting this measure today. It's very hard for me to say this as a mom and someone who has relied on early childhood education and childcare. And I love what is written in the background in justification on the B52. But I'm just really troubled by how long it's taken our County to move forward on the RFPs (Request for Proposals). We've received numerous presentations on our priorities with promises to issue RFPs soon thereafter, and they haven't materialized, and folks in the community that I've talked to in the early childhood space are just feeling really disappointed and frustrated. And that is putting it mildly because I've also had some other really colorful conversations with folks about this. So, I can't support an additional position at this point. I feel like there is enough staffing within R&D to move forward on the initial work that was articulated. I'm also happy to maybe put a pin in this until we receive the formal update from Research and Development. But I just can't, in good conscience today, support creating an additional position, because I don't really have a track record here to go off of in terms of getting these RFPs out the door and spending the tens of millions of dollars that was awarded to our County years ago. Thank you, Chair. ACTING CHR. EVANS: Member Lee Loy. MS. LEE LOY: Thanks. I'm trying to figure out a way through, and maybe this is a question for Finance. Thanks, Diane and AB (Aaron Brown). I see you guys in there. I share this frustration because I see it coming from our ARPA dollars, but I also know there was CARE (Coronavirus Aid, Relief, and Economic Security) dollars. So, I don't like feeling like we have our backs up against the wall. Diane, thanks for being here. You know, I'm trying to find a way through. I think we're all frustrated as to how this money could have been infused into our community a whole lot sooner. Talk to me a little bit Diane, about the contracting timelines so that we make sure we don't lose this money. I think that's my angst right now. (Note: At this time, Finance Director Diane Nakagawa came forward to address the members of the Committee.) MS. NAKAGAWA: Sure, Council Member. Happy to do that. So, I believe Doug mentioned and if not, that the money needs to be encumbered by the end of this calendar year. So, contractually, if we're looking at RFPs we need to get them issued and under contract in the very near future. Page 18 FC-29 February 20, 2024 MS. LEE LOY: I know we're all trying to be friends here. What's near future? And we all know the pace of government. MS. NAKAGAWA: So, happy to walk through that. So, a normal RFP process would take sometimes three to four months, and that includes the development of the scope of work. Now, if the scope of work is fully developed, and the RFP has gone through a review, it'll be posted for 30 days at minimum. It'll go through the evaluation process with a panel of evaluators, and then the contract will be drafted and routed. So, it goes through several steps of review prior to contract execution; and finally, encumbrance of a contract. MS. LEE LOY: We're cutting it close. I get it. In addition to these contracts, I'm acknowledging there's a construction management and program designed to evaluate these potential sites in which this money will be infused into these sites. And I really appreciated Ms. Kagiwada's question because does that become a position here at the County level that's funded by this, and then what happens? We've opened up all of our preschool sites. Where does this construction management position end up? MR. ADAMS: Would you like me to take that Diane? MS. NAKAGAWA: Yes, please. MR. ADAMS: So, Council Member, the construction side of this would be funded within the design element, which would not necessarily be at the County level. Part of the work we're doing is to ascertain if we can find leased properties and work with landlords to have them do the design work, where we then are reimbursing that work. That actually resolves some of the issues. It's similar to some work that has been done by the County with other landlords for facilities that the County then has used later on. So, we're figuring out how we can move as quickly in a streamlined way to push that through. The funding for any of these activities comes from the American Rescue Plan Act funds. We're not creating County positions specifically. Maybe I guess the right way to phrase that is, any positions that are created as a part of the work itself. And so, where we have opportunities to move and do some partnership activities, the funding that comes in to reimburse, say what the landlord is doing. However, they set that up as long as the work is done, you know, then the funding will cover that work. So, it isn't specifically we're going to try to bring, you know, an engineer project manager in, necessarily unless there's a requirement for a particular project. MS. LEE LOY: Thanks, Director Adams. You know, you're right, I'm having all these questions, and without having that presentation, it's hard to understand. But I also don't want to leave this kind of money on the table. Page 19 FC-29 February 20,2024 Final question, and I don't know if it's for Diane or you, Doug. Has the Department of Health (DOH) and/or other entities that would go through the rigors of certifying these childcare facilities been invited to some of these conversations, and will that be contained in that presentation upcoming? And I ask that question because we can only control what's within our control. I just want to understand that everybody else understands the urgency of all of this. MR. ADAMS: That's right. So, in terms of DOH and Department of Human Services, which actually when it comes to childcare facilities, obviously has responsibilities for approving those facilities. That is something that we have through the 2026 time period. It doesn't have to be done by the 2024 time period. So, we're aware of those requirements, and part of the expertise that we have within the folks that we have hired now, is to understand what those requirements are so that as the RFP's scope of work are developed, those are included, then turns into the contract before the end of this calendar year. MS. LEE LOY: Thanks Doug. Thanks Diane. Maybe I'll have a conversation offline. You know, day one, I've always said good information helps us make good decisions. I'm okay with moving this forward. I have a question for maybe our Chair or other members of the dais. Is that presentation going to meet up with this resolution where we can make a more informed decision? ACTING CHR. EVANS: So, Member Kagiwada, do you know the date of the presentation? MS. KIMBALL: I'll have to double check, but I believe we are set-up for the second meeting. MS. KAGIWADA: That is correct. The second meeting. MS. KIMBALL: Because just to clarify. Actually, we had a request for presentation from Council Member Kagiwada, Council Member Kaneali`i- Kleinfelder, and Council Member Kierkiewicz. So, it's actually all around the ARPA funding. So, the first one that came in the in -boxes is Matt's. So that, I believe is the —is that correct, Doug? Your recollection, the second meeting in March. MR. ADAMS: March 19th and 20th time period, yes. MS. KIMBALL: Yes. So, that's where we're set up for the next meeting. MS. LEE LOY: You know, I'll be okay with moving it forward to Council. But I'm going to hold it in Council because we'll be at the first meeting in March before we still have a presentation on our ARPA funds. You know, I guess I just need more, and maybe separate and apart I'll do my best to kind of connect with Page 20 February 20, 2024 you, Diane; and you, Doug and your squad and maybe get a flavor of what that presentation will look like. I think we just have to be able to communicate back out to our constituency that we're not going to leave this money on the table, but it is going to translate into childcare opportunities that is very desperately needed. Is that okay, Doug? I'll circle back around on you between now and our next meeting. MR. ADAMS: That'll be fine. MS. LEE LOY: Perfect. Thanks Diane. MS. NAKAGAWA: Council Member Lee Loy, thank you for your comments. And I just do want to share the sense of urgency is understood and shared. And we were looking at ways to work with R&D here in Finance to have some creative RFP options to accelerate the process. MS. LEE LOY: I love what you're saying there, and there's definitely some work we still can do concurrently in anticipation of this, but we shouldn't stop that process. Thanks Diane for acknowledging that. Chair, I yield. ACTING CHR. EVANS: Thank you. Member Inaba. MR. INABA: Yes, being that some of childcare providers are nonprofits, Director Nakagawa, do we need to go through an RFP process? MS. NAKAGAWA: We talked about that with R&D over the last week, and there are a couple of options for this. However, we're strongly feeling that the RFP process provides a way to set specific criteria and also to make the process as transparent as possible for where these funds will be allocated. So, I know that does add to our process, but we feel it's the best way to be transparent in what we're looking for in how it's selected and how the funds will be disbursed. MR. INABA: Okay. I mean, I definitely agree it's the better way to do things, but it's been months, and I believe in looking back at the minutes from the first presentation that we had here at Council, we were supposed to have R&D be back in January. I agree with what Council Member Kierkiewicz brought up in that we do —I think it is our duty to have that information before we make any decisions on something like this. So, I would recommend postponing this out to that March 5th meeting, so that we can get that information then or actually perhaps the March 19th meeting, since we're going to —what would it be? No, March 5th, since we could then vote on it at Council on March 20th after hearing that presentation on March 19th Page 21 February 20, 2024 So, I have no information. I don't think the Council has any information to make an educated decision on a three-year employment contract right now. And I really hope that we are able to get these funds out to community, because there is a significant need even for expansion of some of the existing childcare providers here in West Hawaii. So, thank you. ACTING CHR. EVANS: Member Galimba. MS. GALIMBA: Thanks. Hopefully, it's not putting you on the spot, Director Adams, but I just wanted to ask on the justification, on the bottom there was discussion that this position would be used to expand early childhood opportunities in Pdhoa and North Kohala because those particular communities had especially low scores versus the State average for kindergarten, entrance, and third grade reading scores. I was just wondering if you knew off the top of your head, how were those scores relative to the State average, which I understand is the State average. Which I understand, the State average was also not great. MR. ADAMS: The State average wasn't great. I don't have the numbers right in front of me. So, any numbers I would give you would be —why don't I just make sure I provide the actual numbers. That way you'll have the exact numbers. MS. GALIMBA: Okay. That's probably part of your presentation on the 19th I imagine or not? MR. ADAMS: No, it certainly will be. Council Member Kagiwada is asking for it to be included in that. MS. GALIMBA: Okay, thanks. I can probably just wait till then. But support the effort to get more early childhood education out into our community, of course. Thanks. ACTING CHR. EVANS: Members? Member Kagiwada. MS. KAGIWADA: I just want to support what my colleague, Ms. Lee Loy said. I think I'd also like to just go ahead support this, but then hold it in Council until we hear the presentation. That would be great, and I hope that —I guess I'm asking, is that something you can live with, Director? MR. ADAMS: Thank you for the question, Council Member. I would encourage the Council, actually not to hold on to this position. The idea of spending the money is, and in an urgent way, really important. And this position will help us do that. It's 50 percent expansion in terms of capacity in this particular section. So, I absolutely get it. you want more information. You want the update in early learning on the resource side, and you want an understanding of how we're going to be able to run through the Request for Proposals process across the spectrum of Page 22 FC-29 February 20, 2024 priorities. And that's going to be part of the briefing. But we do need to put people into these positions so that we can begin to run them, and holding off just adds another month or more to not having that capacity. So, I would encourage the Council, actually to again —appreciate the opportunity for the Council to recommend favorably the Committee to the Council. Then I would ask the Council to support the resolution when it comes to you and not postpone it. MS. KAGIWADA: Thank you. Yeah, understanding some of my colleagues' frustrations. I have the same frustrations, especially dealing with our constituents who are asking what's going on with this funding. But I also know that the childcare system, and I say that very loosely because we don't really have a childcare system in this Country, or in this State, or in this County. It's very messy, very underfunded, and very chaotic in a lot of ways. So, to try to infuse and really make a difference with this money, it seems like a lot of money, but given how underfunded and underorganized the system is, I can see that it's very complex to pull all those levers and try to make an actual difference. So, appreciate what you're doing, and yeah, we'll support this time. Thank you. ACTING CHR. EVANS: Member Kierkiewicz followed by Lee Loy. MS. KIERKIEWICZ: Thank you. You know, I'm going to continue to advocate for keeping this particular measure in Committee. I don't like feeling pressured. There was a presentation that was made July of last year. I don't recall this particular position being requested at the time. And now, I'm feeling as if our body is being forced to rush through this, and I don't want to be rushed. This is a significant amount of money that has the potential to create transformative change in our community. And in reviewing some of the materials that have been presented to us on priorities for ARPA, there have been a lot of changes. There have been a lot of changes. Some in the community have even gone so far as to say, pay to play. I don't know, that could be a stretch. But I really think Committee is the best place to be having these conversations. If forced to vote today, I just cannot support this resolution. Thank you. ACTING CHR. EVANS: Thank you. Member Lee Loy. MS. LEE LOY: Thanks. Director Adams is it possible, and we've done this before where, and I know the request has been made. But this resolution came to us under Communication 726. And maybe a portion of that presentation can be an addition as a Communication 726.1 or 726.2, where we can get the information to make a better decision on this. That way we can run it parallel with what my colleagues need to make a good decision. Page 23 FC-29 February 20, 2024 For the transparency of community, I think there's a way. I'm going to need a commitment from your office, Doug, that we can meet somewhere in March rather than just let this either stop here, hold it up, and wait two meetings to get a presentation and then still have to push this along. Is that a possibility, Director? MR. ADAMS: Council Member, I'm confused. I apologize for being confused, but I'm not sure what you're asking. MS. LEE LOY: So, I understand that Ms. Kagiwada has a presentation request that is going to be coming up in March. My question is, is there a portion of that presentation that specifically addresses this early childhood resources that could be carved out of the presentation scheduled for March 1.9th ; delivered to the Clerk under Communication 726.1, which would match up with this resolution so that we can get the information that we need and make an informed decision on the resolution? MR. ADAMS: We could provide the presentation as a communication, so that you'll have it at your next Committee hearing, certainly. But what I'm hearing, though, is that you're not asking for someone to actually make that presentation. Because that would still be on the 19th. But the presentation itself could certainly be part of an addendum to the communication. MS. LEE LOY: Yeah, I guess I'm trying to figure out a way to get what we need. Still within this package of this communication be able to ask the questions that we need to ask and make an informed decision. I don't know what that presentation will look like in March, and it might be a repeat of some of the information. But I also know there's information that the dais is asking for as far as in totality about the spend -down of all of our funds. MR. ADAMS: Which will be in a different committee. So, yes, we certainly can provide. The presentation has been ready, so that presentation can be submitted as a point -one to this communication. That way you'll have it, and then you know on the 19th, we certainly can address any questions to that; plus, what additional information that would be part of what a presentation would be. Because it's not, obviously, just what's on the slides. MS. LEE LOY: Sure. You know, I'm going to lean in on the rest of my colleagues. I think my colleagues understand what I'm trying to get to. But you know, again, understand the wisdom of holding it in Committee. I'm willing to push a little to get it to Council so that we can hear the presentation, but if I don't have it at Council, I would either be voting, "no," or to postpone. Look forward for my colleagues' thoughts. I yield. ACTING CHR. EVANS: Member Inaba. Page 24 FC-29 February 20, 2024 MR. INABA: I would like to make a motion to postpone. But before I do that, if you had anything you wanted to say, Chair. ACTING CHR. EVANS: Yes, thank you. My only comment is, I too feel like this is a rushed decision. I do have questions. It says in your justification sheet that you want to do new work in 2024. I have to believe that discussion about how you're going to evolve this effort on early childhood would have had some discussion moving into, you know, a strategic plan or an effort of what you want to do in 2024. And I also feel that it's rushed, and I personally look forward to supporting us by getting more information. And I believe postponing it would not really delay —by two weeks, I don't see it as a big delay. But thank you, I yield. Motion to Postpone: Mr. Inaba moved to postpone Res. 436-24 to March 5, 2024. Seconded by Ms. Kierkiewicz. CTING CHR. EVANS: Any discussion? MR. INABA: Yes, thank you, Chair. So just again, Director Adams, if we can get any kind of information so we can have the dialogue specifically, surrounding this resolution and the creation of this position on March 51h. We can take care of that and then we can get the big picture at our March 191h Committee Meeting that Council Member Kagiwada's communication will bring forth. And then, we can take action at Council on March 20th. So, that would be the timeline we're looking at now. Ask for everyone's support. Thank you. ACTING CHR. EVANS: Member Kimball. MS. KIMBALL: Yeah, I'll be voting, "no," on the postponement. I'm fine with moving this ahead. ACTING CHR. EVANS: Thank you. Any further discussion? Member Lee Loy. MS. LEE LOY: On the postponement, I have a question for Diane. You know, listening to Council Member Inaba, we would marry up a lot of the information at our next committee meeting, and then final decision on March 20th. We just shaved off a month on that time. How much overtime you guys need to get this stuff done? The proposals and the RFP's. MS. NAKAGAWA: So, what we would need to get the RFP's to be posted, is the scope of work. So, you know, I would ask Director Adams from his team if this is something that can be worked on with his existing staff. Because that is really the starting point of getting these RFPs issued is the development of the scope of work. If that can happen prior, then the RFPs can be posted prior. But that is where we start. Page 25 February 20, 2024 MR. ADAMS: If I'm allowed Chair? ACTING CHR. EVANS: Yes, please. MR. ADAMS: We're not waiting to prepare those, right? We're working on those now with the team that we have. So, we're working. MS. LEE LOY: Okay. Diane, maybe at our next meeting, you guys can give us an update on the status of the scope of work, as we know it's all going to come together the way we need to. You know, for those reasons, I'm going to go ahead and support this postponement. I think if we do get it under a communication under the 726, we'll get what we need. And then we'll have the full presentation, like Mr. Inaba said, on the 19th; then we'll have final decisions on the 20th. So, I'm going to be supporting the postponement at this time. I yield. ACTING CHR. EVANS: Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. Director Nakagawa, I think between now and the next committee meeting when we hear this measure, I would like your personal assurances that the Department of Research and Development can get this done. It's been a couple of years now since our County has had ARPA money. Our County was able to demonstrate spending $80 million in less than six months. So, I know we got it. And so, I just want your personal assurances that you've got schedules, people accountable, tasks and responsibilities assigned. Because I don't want our County to squander this opportunity. I just have to say, I'm a little bit disappointed, because there's still so much Federal money out there that we could be leveraging. This was supposed to be that catalyst for us, and I feel like we've wasted significant time in delivering for our community. So, at our March 5th meeting, I want your personal assurance as Finance Director that our County can get this done and encumber the monies. And it's going to be delivered to our community in a meaningful way that will have impact. MS. NAKAGAWA: Council Member Kierkiewicz, thank you for your comments. Again, the urgency is understood. I am committed, our Finance team is committed to working with Research and Development on these RFP's; looking at schedules, getting a timeline, and being prepared to answer those questions and get the funding out. I wholeheartedly share in the concern. And in the desire to get the funds out there, that is something that we do share. That is our goal, and we are committed to doing that. MS. KIERKIEWICZ: Okay, thank you. Chair, I yield. Page 26 FC-29 February 20, 2024 ACTING CHR. EVANS: Thank you. Any further discussion? Member Galimba. MS. GALIMBA: I just wanted to say that although I don't have a problem with this, I will support the postponement so that my fellow Council Members can get the information they need to feel comfortable with this decision. ACTING CHR. EVANS: Member Kagiwada. MS. KAGIWADA: Thank you. I'll reluctantly support the postponement for two weeks. I feel like, you know, it's been pushed and pushed, and two weeks can't be a make or break. I certainly hope not. We can get it together and do that. So, I'll also be supporting the postponement. But I really hope that my colleagues can get their answers met and we can support this in the long run, because that's what's super important. Thank you. ACTING CHR. EVANS: Any further discussion? Seeing none. All in favor of the motion? Sorry, we'll do a roll call. Okay. Vote on Motion to: The motion to postpone Res. 436-24, to March 5, 2024 Postpone: was carried by the following roll call vote: (Approved) Ayes: Committee Members Galimba, Inaba, Kagiwada, Kierkiewicz, Lee Loy, and Acting Chair Evans — 6. Noes: Committee Member Kimball — 1. Absent: Committee Members Kdneali'i-Kleinfelder and Villegas — 2. Excused: None. ACTING CHR. EVANS: Thank you. Mr. Clerk, Resolution 439-24. Res. 439-24: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI -YEAR LEASE FOR ONE MULTI -FUNCTION DIGITAL IMAGING DEVICE FOR THE DEPARTMENT OF LIQUOR CONTROL Authorizes the Mayor to enter into a five-year lease agreement with an approximate monthly cost of $300, to be used by the department's Hilo Office. Reference: Comm. 729 Intr. by: Mr. Kdneali'i-Kleinfelder (B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 439-24. Seconded by Ms. Galimba. Page 27 FC-29 February 20, 2024 ACTING CHR. EVANS: Any discussion? Is the department present? Is there Finance? Thank you. Just a comment or two about what we're approving, please? (Note: At this time, Finance Director Diane Nakagawa came forward to address the members of the Committee.) MS. NAKAGAWA: Sure, Council Woman. This one is for a multi -year lease, five years for a multi -function digital imaging device. So, commonly we do come to Council for our multi -year leases for these types of machines needed for our departments. ACTING CHR. EVANS: So, what you're saying is it's normal to do leasing and not purchase. MS. NAKAGAWA: Correct. And this is for a multi -year for a copier. ACTING CHR. EVANS: Okay, good. Members, any questions. Seeing none, all in favor? Any opposed? Vote on Res. 439-24: The motion to recommend adoption of Res. 439-24 was (Approved) carried by the following voice vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, and Acting Chair Evans — 7. Noes: None. Absent: Committee Members Kdneali'i-Kleinfelder and Villegas — 2. Excused: None. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Bill 104: AMENDS CHAPTER 19, ARTICLE 1, SECTION 19-2; CHAPTER 19, (Draft 4) ARTICLE 7, SECTION 19-53; AND CHAPTER 19, ARTICLE 11, SECTION 19-90, OF THE HAWAFI COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO THE CREATION OF A LONG-TERM RENTAL CLASS FOR REAL PROPERTY TAXES Establishes a Long -Term Rental tax assignment classification for properties that are occupied under a lease for at least ten consecutive months by the same tenant. Reference: Comm. 600.26 Intr. by: Ms. Kagiwada and Ms. Galimba Postponed: December 5 and 19, 2023; January 23, and February 6, 2024. Page 28 FC-29 February 20,2024 (Note: There is a motion by Ms. Kagiwada, seconded by Ms. Galimba to recommend passage of Bill 104, Draft 4, on first reading.) (Note: Comm. 600.31, from Council Member Jenn Kagiwada dated February 2, 2024, transmitting proposed amendments to Bill 104, Draft 4, was circulated.) ACTING CHR. EVANS: Thank you. Member Kagiwada. MS. KAGIWADA: Thank you, Chair. So, we have an amendment. We're also going to be asking for another postponement on this. But I did want to do a quick summary and then allow anybody to comment. Just where we're at, because this has stretched over a bit of time, and we've had some good discussions. First of all, I really appreciate the ability to bring this to this body and have these discussions. Because you know, with Sunshine Law and everything, I do think it's really important that we can have these discussions and make a better bill. And I do think we're getting a lot closer. So, in summary, we have had numerous meetings over these last several months with individuals. We met with the Japanese Chamber of Commerce. Met three times with different realtor groups. We did a public meeting on Zoom. We've met with our RPT (Real Property Tax) folks and our Office of Housing folks. Then last week, we were also able to meet with Maui's RPT folks and the Council Member who initiated their Long -Term Rental bill. So, we have done a lot on it plus obviously, all the great discussions we've had here in Finance Committee. I wanted to highlight a testimony that came in and was sent to us today from the Johnson's, and this is kind of you know, where I had been hoping to go. For some people, they're in the very situation that they described, which was, they have a second home in the County. They provide housing for a local family. Their real property taxes are about four times that of their home, and they don't want to raise the rent on this local family. But they feel like without support like this, they will have to do so. So, that's the kind of situation when I started this and when Michelle (Galimba) and I talked about this, we talked about really trying to address. We've done a few amendments based on our good conversations with you all here and with some of these expertise groups. So, we've done the length of the lease; made it six months instead of the ten-month kind of strange, proposed idea that had originally come up. We added the provision that this program would only be for residences that were under the $2 million property value. Because we had those good discussions about, this is the group that we want to target. Page 29 FC-29 February 20, 2024 Today, will be, you know, adding an amendment. Then just wanted to highlight that as we've had these discussions, you know, there's been new benefits that have come up that we hadn't originally been thinking of so much. But keeping long-term rentals as part of a really vital source for housing for our community, that's certainly one; but also, the data gathering. This was stressed to us when we met with the Maui folks. Just to say, it was Keita Jo from our Real Property Tax, Maui's Real Property Tax person, and Council Member Keani Rawlins -Fernandez that they said that was a huge benefit. When they put this into place, it was the data that they got about what people are doing in their county as far as far as housing goes, that they hadn't had access to before. The other key part was separating out people who are doing long-term rentals to our residents from our residential properties. Mostly for them, vacant properties. And this is an issue that we do not know which of our properties are vacant properties and which are doing short-term vacation rentals, and which ones are doing long-term rentals. So, without this data, and without, you know, figuring that out, it's very hard to appropriately, I believe, tax these different property groups. So, I just wanted to give that summary. Then if I could, I'd like to just propose this amendment, which is basically —well, here, I'll propose the amendment, if that's okay? ACTING CHR. EVANS: Please proceed. Motion to Amend: Ms. Kagiwada moved to amend Bill 104, Draft 4, with the contents of Comm. 600.31. Seconded by Ms. Galimba. ACTING CHR. EVANS: Any discussion? MS. KAGIWADA: Thank you. Just to say, this is to push back the start of this program to a year later. And we had hoped to kind of get this done quickly, but it became clear that it's very complicated and people had lots of questions. And like I said, I think we're improving as we go, but we realized our Real Property Tax people said we aren't going to be able to get it done in the timeframe that we had hoped. So, we're going to push it back a year. That is our suggestion now. It gives us time to really do more, bring you more information, have more discussions, and I hope you can support that amendment. ACTING CHR. EVANS: Okay, any discussion? Member Galimba. MS. GALIMBA: Just to add, I think this is a necessary and a good thing to postpone the start of this program until 2026 in order to give our RPT folks time to implement and also give us more time to discuss this measure. And our Page 30 FC-29 February 20, 2024 intention is to postpone this until June so that Council Member Kagiwada and I can have some time to really look at this measure. We've really got a lot of food -for -thought in talking with the Maui Council Member. And their RPT person. So, I think we want to look at this measure again. I think one of the most interesting things really was the very long-term approach that the Maui Council is taking as far as setting up their RP (Real Property) tax system to be very differentiated and to both gather information through that differentiation and to also tax the different classes, most appropriately. I mean this is probably our biggest instrument that we and the Council have. So, I do think that our real property tax structure could use more differentiation. So, that's all I'm going to say as far as the amendment and maybe say a little bit more after if we pass it after that. ACTING CHR. EVANS: Thank you. Any further discussion? Okay seeing none, all in favor of the amendment? Any opposed? Vote on Motion The motion to amend Bill 104, Draft 4, with the contents to Amend: of Comm. 600.31 was carried by the following voice vote: (Approved) Ayes: Committee Members Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, and Acting Chair Evans — 7. Noes: None. Absent: Committee Members Kaneali'i-Kleinfelder and Villegas — 2. Excused: None. ACTING CHR. EVANS: Okay, back to Bill 104, Draft 4. Any discussion? Member Galimba. MS. GALIMBA: Yes, I guess I wanted to just follow-up on something that was the most striking for me, really. Well, there's two things that were really striking about our discussion, and I think Council Member Kagiwada and I will be thinking about. And it has been something that I think a number of Council Members have been worried about. It's the relationship between the Affordable Rental Class and this Long -Term Rental Class. It's interesting because Maui doesn't have an Affordable Rental Class. They have a Long -Term Rental Class. And they're thinking now about putting in an Affordable Rental Class. Sort of backwards of what we're doing. But I think in some ways, I wish we could have done that. But here we are, and with all respect the concerns people have, but we're actually kind of dealing with an Affordable Rental Class that is a bit of a failure to be really blunt. Page 31 FC-29 February 20, 2024 There're only 1,500 properties on the island in the class. There's less than 100, from what I understand, on the West side. So, clearly it's not doing what it's needing to do to incentivize rentals. So, I think we need to look at that program and the kind of incentives that it provides because we do want to make sure that affordability is incentivized. But I think one of the problems we ran into in this discussion is that we can't create enough distinction. And it's really kind of not the problem of this Long - Term Rental Class, it's actually that we don't have enough incentives on the affordable rental side, and it's not just incentives, but it's also —there's disincentives almost built into that Affordable Rental Class. So, just some thoughts about what we'll be thinking about between now and June. And I guess I'll let you do it, Council Member Kagiwada, the motion to postpone. ACTING CHR. EVANS: Do we have any further discussion? I'd like to offer, there's a lot of discussion going on at the State Legislature. And you know, the Governor has even thought about possibly doing rental caps, which sometimes is done in a dire situation when things are kind of spiraling out of control. So, I'm really appreciative that you're thinking of postponing it because I think the Legislature is really in the middle of a bigger discussion on how to deal with housing and Lahaina. And I think a lot of creative thinking and ideas are going to be proposed. And I know you went on with Stanley Chang and, you know, as the Housing Chair, he's got a whole bunch of ideas he's floating at the Legislature right now, including probably empowering the County to do certain things. So, who knows what they might give us in terms of authorities. But I agree that affordable rental housing, I think it was a good concept. It'll be nice to know why the incentive isn't working like it should. But what I like about affordable rental housing is it does incentivize the landowner to hold the rent itself down and get an incentive for this. And my concern about long-term rental is, if we're tying it to holding down what the rent is, it would be nice because we could end up with long-term rentals. This is my big concern. We're rolling out affordable housing projects, we've got workforce housing, we've got 201H projects. Susan Kunz and everybody's rolling out and shouting who's in the pipeline. Well, the reality is when it comes out of the pipeline, we're going to have construction workers moving in from the mainland to do all the construction work. And what you're going to have is a huge amount of paying because they're going to pay double or triple the amount of rental. That would be the norm in the market, but because of the shortage created by the construction workers needing housing, we're going to see a huge spike in what the monthly rental rate is going to be. And now we're talking about maybe giving them a long-term rental tax break when in fact, the rents are going to be off the Page 32 FC-29 February 20, 2024 chart. This is what I'm seeing coming. So, it's just the timing, and the ability to hold down the rental rates. It would be nice to have that as part of the whole discussion, right? So, thank you for considering it. I think it's a great idea, but it needs some more —there's some outside influences going on right now, and I'd like to see how that rolls out. But thank you. Back to you, Member Kagiwada. MS. KAGIWADA: Okay. Thank you and thank you for saying that Chair. There are lot of things impacting. I will say, we did meet with OHCD (Office of Housing and Community Development), and they did not see what we currently have there as impinging on their programs in any major way. And they were prepared to come and speak today, but we thought it would be better to hear their information when we delve into it a little more with the additional changes we may be proposing. So, thank you, and I guess I'll make a motion at this point to postpone this discussion until June 18, 2024. ACTING CHR. EVANS: Any discussion? Seeing none, all in favor? Any opposed? Vote on Motion Ms. Kagiwada moved to postpone Bill 104, Draft 4, as amended to June 18, 2024. to Postpone: Seconded by Mr. Inaba and carried by the following voice vote: (Approved) Ayes: Committee Members Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, and Acting Chair Evans — 7. Noes: None. Absent: Committee Members Kdneali'i-Kleinfelder and Villegas — 2. Excused: None. Page 33 FC-29 February 20, 2024 ADJOURN- There being no further business, at 12:07 p.m., Ms. Lee Loy moved to adjourn MENT: the meeting. Seconded by Ms. Kagiwada and carried by the following voice vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, and Acting Chair Evans — 7. Noes: None. Absent: Committee Members Kaneali'i-Kleinfelder and Villegas — 2. Excused: None. ACTING CHR. EVANS: We are now adjourned 12:07 p.m. Approved: M Mr. Mat Kdneall'i-.Klein Ider, Chair r 0 Finance ommitt MKMt Page 34