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HomeMy WebLinkAboutMIN FC 2024/07/09 (2022-2024)Committee on Finance 39' Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii July 9, 2024 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 1:00 p.m., in the Council Chambers, Hilo, by Mr. Matt Kdneali'i-Kleinfelder, Chair. ROLL CALL: Present: Mr. Matt Kdneali'i-Kleinfelder, Chair Ms. Cindy Evans, Vice Chair Ms. Michelle M. Galimba, Member Mr. Holeka Goro Inaba, Member Ms. Jenn Kagiwada, Member Ms. Ashley L. Kierkiewicz, Member Ms. Heather L. Kimball, Member Ms. Susan L. K. Lee Loy, Member Ms. Rebecca Villegas, Member (came in later) 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.) Change Order As directed by the Chair and with no objection from the Committee Members, the of Business: following items were taken out of order: Res. 551-24: AUTHORIZES THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE U.S. DEPARTMENT OF JUSTICE, OFFICE OF JUSTICE PROGRAMS, PURSUANT TO HAWAPI REVISED STATUTES SECTION 46-7, FOR A GRANT TO THE HAWAPI POLICE DEPARTMENT Allows for the receipt of $50,537 of federally -derived funds to fund travel and training to increase the efficiency and readiness of the Police Department's Special Response Team. Reference: Comm. 923 Intr. by: Mr. K5neali'i-Kleinfelder (B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 551-24. Seconded by Mr. Inaba. FC-39 July 9, 2024 CHR. KANEALI'l-KLEINFELDER: We have members from our Police Department here today. If you could, Mr. Carvalho, you want to come up if there are any questions from the Council? I'm give you just a moment to go over briefly what's in front of us and then we'll see if there's any questions. Go ahead, Lieutenant. When you're ready. (Note: At this time, Police Lieutenant Aaron Carvalho came forward to address the members of the Committee.) MR. CARVALHO: I'm ready. Good afternoon, Council Members. CHR. KANEALI'l-KLEINFELDER: Introduce yourself for the record. MR. CARVALHO: My name is Lieutenant Aaron Carvalho. I'm the Lieutenant of the Special Response Team representing the Hawaii Police Department. CHR. KANEALI'l-KLEINFELDER: Thank you. Just give us a brief summary and then we'll go to questions if there are any. MR. CARVALHO: Okay. So, we recently applied for and was awarded approximately $50,537 from the Edward Byrne Memorial Justice Assistance Grant. This grant will be used as training resources or training money for the Special Response Team, and with the use of this grant we'll be able to certify two of our operators in tactical breeching, two of our operators as less lethal instructors, two of our operators to attend a National Tactical Officers Association Conference, as well as four of our marksman snipers to receive specialized precision marksmanship courses. CHR. KANEALI'l-KLEINFELDER: Thank you. Council Members, questions for the lieutenant? Council Member Inaba. MR. INABA: Thank you. Just one question. So, all of these trainings and travel occur between now and next June? MR. CARVALHO: Yes, that's correct. MR. INABA: Okay. Perfect, thank you so much. Chair, I yield. CHR. KANEALI'l-KLEINFELDER: Thank you. Council Member Evans. MS. EVANS: Yeah. Just curious. I see that there was a threat at our Hilo Airport this morning. Is this something that you would be called out on, or do you depend on the federal government when it comes to airports? MR. CARVALHO: So, I was personally called out this morning and responded to that call. The Hawaii Police Department does have a bomb squad. It's part of Page 2 FC-39 July 9, 2024 a Hawaii interisland bomb squad. I'm one of the members and we have another bomb technician assigned on the Kona side. So, we were notified of this incident and responded accordingly, and took control of the scene. MS. EVANS: Thank you. Because you brought up tactic training, I was kind of curious if this would fall in that. MR. CARVALHO: This particular grant, the funds are not going to be used for the hazardous devices section because we have other federal funding for that. MS. EVANS: Okay. So, how would this get applied? This would be responding to school shootings? MR. CARVALHO: This would be any type of crisis that is beyond the efforts of patrol or capabilities of patrol. So, this could be an active shooter at the school, this could be a hostage situation or a barricaded subject, any of our criteria that the SWAT (Special Weapons and Tactics) team is used to be called upon. MS. EVANS: Okay. Alright. I'm all for training, so thank you. Tell everybody thank you for what they do. MR. CARVALHO: Thank you, Ma'am. MS. EVANS: Thank you. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay. Let the record reflect that Council Member Villegas has joined us. We are on Resolution 551-24. Okay, seeing no further questions, appreciate you guys applying for the grant and bringing the money home. And look forward to seeing what you do. You've done a lot of work in the Puna Uka Community, and I appreciate that. I see you folks in the black van, the black truck a lot. So, appreciate what you guys do. Thanks for keeping us safe. MR. CARVALHO: Thank you, Sir. Thank you, Council Members. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay, Council, we have the motion on the floor to forward Resolution 551-24 to Council with a favorable recommendation. All in favor? Page 3 FC-39 Vote on Res. 551-24 (Approved) July 9, 2024 The motion to recommend adoption of Res. 551-24 was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. CHR. KANEALI`I-KLEINFELDER: Let's take up Resolution 550-24, please. Res. 550-24: AUTHORIZES THE MAYOR TO ENTER INTO A MULTI -YEAR AGREEMENT WITH HAWAIIAN TELCOM, INC., REGARDING COMMUNICATION SERVICES FOR A NEW EMERGENCY COMMUNICATIONS CENTER IN HILO Authorizes the Mayor to enter into a three-year agreement at an estimated cost of $200,000 per year, for the Hawaii Fire and Police Departments' emergency operations. Reference: Comm.922 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 550-24. Seconded by Ms. Galimba. CHR. KANEALI`I-KLEINFELDER: Any discussion by the Council Members? We do have our Fire Department here in the Chambers if we have any questions. Council Member Evans, go ahead. MS. EVANS: I was hoping someone from Hawaiian Telcom would be here, but please come forward. Thank you. You know, I read this and they're claiming it's reliable. We've been having some trouble with our telephones here in this building calling out. So, I'm just kind of curious, you know, have they given you any information how they make sure it's reliable? I know it's a question for Hawaiian Telcom, but I do have concerns because we've had a lot of trouble in this building, and I know it's a new center but it's in an old part of town and, you know, you're tapping into older facilities. So, I'm just curious because they're claiming it's reliable. I just want you to let them know that I have concerns, if you would just pass that on to them that I really want to make sure it is, whatever it is, sometimes it's redundancy, sometimes it's fiberoptics. Are they going to attach 5G antennas outside on the building? Whatever they're going to do. This is our emergency, our heartbeat, right? So, I just want to make sure. That's why I'm asking the hard question. Page 4 FC-39 July 9, 2024 (Note: At this time, Fire Battalion Chief Stacy Domingo came forward to address the members of the Committee.) MS. DOMINGO: I agree. I think that is for Hawaiian Telcom to answer because I don't know the ins and outs of the specifics. But I can tell you that for our answering system within the dispatch center, we do have two systems. One that goes through the internet and also a backup system. So, some of the concerns that you're mentioning, as far as hardlines we call them, those will be for our offices and such. But that's not for the 911 system. That's not the primary response that we do for the 911 system. MS. EVANS: Okay. Alrighty. Just please relay my concern. MS. DOMINGO: I will definitely do that. CHR. KANEALI`I-KLEINFELDER: Thank you, Battalion Chief (BC) Stacy Domingo. Council Members, questions for Fire Department? Council Member Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. Hi, BC Domingo. Great to see you. 540 Kupuna Place, the new emergency communication center, it's not built yet, yeah? MS. DOMINGO: It is built. MS. KIERKIEWICZ: It is built. And you guys are actively operating out of there? MS. DOMINGO: No. Not yet. We're waiting to receive the building to be turned over to the County from the contractors, and then once it is then we're going to be installing everything. That'll take about six to eight weeks. MS. KIERKIEWICZ: Got it. And then so, you folks will be operating out of there. What's the timeframe for that? MS. DOMINGO: We're not really sure right now. It could be maybe two to three months that we would be operating out of there. MS. KIERKIEWICZ: Okay. I'm going to be supporting this. I think it's really important that we do have, I mean, emergency communication lines established. But I think to Council Member Evans' point, there have been a lot of interruptions in service, and so we just want to ensure that we are able to communicate to the public but, you know, really more importantly that members of our County agencies are able to have that interdepartmental communication so that you can have really effective and coordinated responses. Page 5 FC-39 July 9, 2024 MS. DOMINGO: Right. I understand. MS. KIERKIEWICZ: Okay. Awesome. Thanks for being here. MS. DOMINGO: Sure. MS. KIERKIEWICZ: Chair, I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Lee Loy, go ahead. MS. LEE LOY: Good afternoon. You know, like my colleagues, I am going to lean in a little bit and maybe at Council, I think two questions that I have is, the timing of that facility actually being turned over for it to be kind of occupied and functional. And the other question I have is the timing of everybody moving into that facility. I'm okay with executing the agreement. I do recognize that it is a multi -year contract, but I also want to make sure the timing is correct, right? Like I don't want to go ahead, execute this, and then the clock starts ticking on a multi- year contract, and it's six or eight more months before it's actually fully operational and functional. I just want to make sure that the lease and timing is all very succinct with its actual lease. MS. DOMINGO: That the contract is not executed until we actually move in. MS. LEE LOY: Well, I think there's some nuances there because they've got to install, right. And so, that the timing of the installation date coincides with 36 months, not 36 months from July 1, more of —and maybe that's something with finance also. But happy to support now and I'll reach out to them. Here comes Steve Pause. You're going to get saved right now. Alright Director Pause, what's the status of that Chair? (Note: At this time, Public Works Director Steve Pause came forward to address the members of the Committee.) MR. PAUSE: Good afternoon. Steve Pause. Director of Public Works. The latest and greatest I have as far as the call center being complete is going to be late August, and then another, as was mentioned, another six to eight weeks to finish all the rest of the communication stuff. So, that would put us in a timeframe of late probably mid -October, as far as what I would envision it being put functional with comms. MS. LEE LOY: Thanks, Director, for being here. Thank you, Chair. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay, seeing no further discussion, motion is on the floor. Thank you very much for being here today. Page 6 FC-39 July 9, 2024 MS. DOMINGO: Thank you, Council Members. CHR. KANEALI'l-KLEINFELDER: Thank you. Motion is on the floor to forward Resolution 550-24 to Council with a favorable recommendation, all in favor? Vote on Res. 550-24: The motion to recommend adoption of Res. 550-24 was (Approved) carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kdneali'i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. CHR. KANEALI'l-KLEINFELDER: Let's take up Communication 12.34, please. Return to Order The Chair directed the Committee to return to the order of business. of Business: COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 12.34: REPORT OF FUND TRANSFERS AUTHORIZED: MAY 16 — 31, 2024 From Controller Kay Oshiro, dated June 17, 2024. Motion to Close File: Ms. Lee Loy moved to close file on Comm. 12.34. Seconded by Mr. Inaba. CHR. KANEALI'l-KLEINFELDER: Discussion? MS. KIMBALL: Chair? CHR. KANEALI'l-KLEINFELDER: Council Member Kimball, go ahead. MS. KIMBALL: Yeah, thank you. Since we have Director Pause here, I do want to ask about this rather sizable transfer from the bridge inspection to the highway engineering consulting services. And just curious what these specific consulting services are and, you know, just the statement that bridge inspections are not ready to execute. If you can maybe just elaborate on that a little bit so we don't have any concern about that? Page 7 FC-39 July 9, 2024 (Note: At this time, Public Works Director Steve Pause and Business Manager Kelsey Kalua-Lewis came forward to address the members of the Committee.) MR. PAUSE: Yes. Aloha. Steve Pause, Director of Public Works. And with me is Kelsey Kalua-Lewis, who is our Business Manager, and she is going to have all the answers for you. MS. KALUA-LEWIS: Alright. So we realize the fiscal year, well kind of not as the fiscal year was coming to an end, but that we had some bridge projects that weren't ready to go. And we did our usual, I think we do like 90 bridges, half of like the County bridges every fiscal year, so we covered that. But some of the other bridge inspection projects weren't ready. Engineering had a project that was ready, Hilo Union Safe Routes to School, that required around the same amount of money. So, we figured we get started on one project and we do have the funds this fiscal year to continue with the bridge work. MR. PAUSE: I guess, kind of just to add on to that. No bridge inspections were not completed as a result of this. This happened to be additional funding that we had completed the 90 or so bridges, that would be our normal cadence for completing. And one of the things that engineering has done with, it's particularly with safe routes, we've done it also with some of the multimodal things that we've done with bike routes, is we like to take money into the frontend loading. You've heard me talk about frontend engineering, so being able to start in on the permitting, the design, so that we have projects that are, I hate to say shovel -ready, but they're clearly further down the path to being able to execute once funding becomes available. So, this is what that was here. MS. KIMBALL: Okay, great. Thank you for clarifying that. And I am, I think Mr. Thompson made me aware of that safe routes projects and I got the two connected. Thank you. I yield, Chair. CHR. KANEALI'l-KLEINFELDER: Thank you. Council Member Inaba. MR. INABA: Yeah. Research and Development (R&D), please. Just wondering if you can shed some light on $154,000 going in from OCE (Other Current Expenses) to salary and wages, and where that money was supposed to have been spent for contracts in that miscellaneous contact service section? (Note: At this time, Research and Development Director Douglass Adams came forward to address the members of the Committee.) MR. ADAMS: Thank you, Council Member. Doug Adams. Research and Development. Actually, the funding there was always intended to support contract employees that were supporting our grant management section. So, the transfer from the OCE contract management account into salary and wages was Page 8 FC-39 July 9, 2024 intended to be part of the amounts that were provided to us in the contract management area, that 115 account. MR. INABA: So, is that what, as part of the budget process this year we had things in the wrong section where they should've been in salary and wage section. MR. ADAMS: That would've been in 2023-2024. So, in 2023-2024 we identified that the amount that came in that OCE 115 was going to be salary and wages for those two positions. Those positions now, that the identification of those positions are included in the salary and wages portion for 2024-2025. So, we've made that correction. MR. INABA: I made that clear, and identified as part of the budget process, right? MR. ADAMS: Yes. MR. INABA: Okay. So, Director Nakagawa, just wanting to confirm then that we're not overbudgeting or underbudgeting anymore since we've identified the issue, and the current budget should be correct for these two sections. (Note: At this time, Finance Director Diane Nakagawa came forward to address the members of the Committee.) MS. NAKAGAWA: Yes. Good afternoon, Council Members. Diane Nakagawa, Finance Department. Council Member Inaba, yes, you are correct. This is one of the changes that we've made with R&D's budget during the budgeting process. Originally, as I understand it, some of these employees we were looking to bring on as employees, and then we went to contract employees and through working with R&D, we determined that these would be contract employees and they would be budgeted in the salaries and wages. And you'll see that in their budget currently for fiscal year 2025. MR. INABA: Okay. Thank you. Just wanting to make sure things are lining up across fiscal years. MS. NAKAGAWA: You're welcome. MR. INABA: Thank you, Director Adams. Chair, I yield. CHR. KANEALI'l-KLEINFELDER: Thank you. Okay. Thank you to our administration for being here today. Seeing no further discussion on the motion, motion is on the floor. All in favor? Page 9 FC-39 July 9, 2024 Vote on Comm. 12.34: Filed The motion to close file on Comm. 12.34 was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. CHR. KANEALI`I-KLEINFELDER: Next order of business, please. Comm. 16.3: REPORT OF DONATIONS RECEIVED FROM THE DANIEL R. SAYRE MEMORIAL FOUNDATION AS OF MAY 2024 From Finance Director Diane Nakagawa, dated June 12, 2024, transmitting the about report pursuant to Resolution No. 468-20. Motion to Close File: Ms. Lee Loy moved to close file on Comm. 1.6.3. Seconded by Mr. Inaba. CHR. KANEALI`I-KLEINFELDER: Any discussion, Council Members. Mr. Inaba. MR. INABA: Yeah. Just, we have folks from the Fire Department here. Chief Okinaka, if you'd like to come forward and say anything on behalf of the department? (Note: At this time, Assistant Fire Chief Darwin Okinaka came forward to address the members of the Committee.) MR. OKINAKA: Good afternoon, Council. Darwin Okinaka, Assistant Fire Chief. Yeah. So, this is once again another round of donations from the Sayre Foundation as you folks can see. Included in here is our brand new chopper, airbus. And then there's four brush trucks, which we've recently received. The second item is actually not an airbus trailer, it's actually an ABT (Adjustable Boat Trailer) trailer that was purchased for our Waiakea Fire Station for the rescue boat there. And everything after Hoku Marine is the brand new rescue boat for Kailua Fire Station and the rest of the items is just associated equipment for that rescue boat basically. So, the bulk of this list is items for the brand new 27-foot Hoku Marine vessel rescue boat that we have at the Kailua Fire Station. I am open for any questions. MR. INABA: Thank you, Chief Okinaka. And with that, just wanted to share a mahalo as always with the Sayre Foundation and all of their partners and associates who make these donations possible. I was fortunate to be a part of the blessing ceremony for our new chopper and for the rescue boat at Kailua Fire Page 10 FC-39 July 9, 2024 Station, and good new energy coming into the County to make sure that our residents are safe. So, mahalo again to the Sayre Foundation. Chair, I yield. MR. OKINAKA: Ditto. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Evans. MS. EVANS: Thank you. I know some of the equipment is out in South Kohala, my district. The question I had is, you know, you accept this equipment, but you also accept the responsibility of, you know, personnel that's going to use it and is well trained to use it, as well as maintaining, especially a helicopter, high maintenance. I know there was issues about not even having a place to store it out of the elements. Can you kind of tell us what we're going to do to operate, maintain, and protect this helicopter? MR. OKINAKA: So, the helicopter itself, I mean, historically, our helicopter has always been stored exactly where it is right now; in the elements, on the helipad at Station 14. After the acquisition of this aircraft, there has been numerous discussions between our fire chief, Chief Todd, and the Sayre Foundation, specifically regarding installing or putting up a hanger for the aircraft, which is basically a steel building that the aircraft can be stored in. I'm not sure exactly where it's at, at this moment, but I know there were discussions between South Kohala, Kailua, because we have property in the rear of the Kailua Fire Station. And I'm not sure exactly where it's at, but there are discussions regarding, even additional donations from the Sayre Foundation for this very reason, on the hanger at least. As far as the maintenance, we currently have a new director of maintenance for this aircraft, which is our previous aircraft, which is the Bell 206, one of our pilots had a dual role as the Director of Maintenance for that because he had experience with, you know, the mechanical side of that aircraft. So, our pilot contractor, which is Manuiwa Air, they provide the services for maintenance on both aircrafts. So, our current Director of Maintenance that provides the maintenance for the airbus, also provides the maintenance for our Chopper 1 in Hilo. So, it's a dual role, and then they cover the maintenance side of that as far as to be able to do the work. As far as the costs related to it then, again, that's with our fiscal section between our accountant, the fire chief, and the current pilot contractor and maintenance director. Whatever needs that we have for this new aircraft that is different from our previous aircraft, you know, they're been working on budgetary, and I'm sure they're working with the Director of Finance on any additional needs for budgeting for any equipment. MS. EVANS: Yeah. I'm thinking we may see some budget accounts, whatever, figuring out because that is clearly additional big responsibility. Page 1 1. FC-39 July 9, 2024 MR. OKINAKA: Definitely, the airbus, the cost to operate and maintain the airbus is higher than the Bell, the older aircraft. I don't have that numbers and the specific details, but I do know the operation, the operating costs, like just fuel consumption has doubled. I can tell you that much. As the Operation Chief, that was brought to my attention. But on the other budgetary and equipment needs, that's usually handled at the chief's level with the pilot contractors. MS. EVANS: Will this helicopter be used to fly people to the Medical Center? MR. OKINAKA: It is. It's an air medical helicopter. It's set up for air medical transport. So, we can use it from scene to hospitals and also interfacility, which is hospital to hospital. And we've done both with this aircraft already, as we did with our previous. MS. EVANS: This could come to Honolulu then? MR. OKINAKA: It doesn't go cross island because of the single -engine feature. So, there is talks of another aircraft being donated with a dial engine that will have that capabilities. So, that is also in the works. So, this aircraft is the one we already have at Station 14. MS. EVANS: Okay. Is this also used for fighting wildfires? MR. OKINAKA: Wildfires, yes. Rescue. The same thing we did with our previous aircraft, we do with this aircraft. MS. EVANS: Right. This is great. This is great to have, especially in fire prone. In Ka`u, you've got your fire prone down there too. But that's great to have it. Thank you so much. MR. OKINAKA: You're welcome. And if I may, just to touch on it since you did mention about the brush truck being in the South Kohala district. I can say that one brush truck is at the South Kohala Fire Station, which is at that same Fire Station. The second is at North Kohala, and then the other two is still not in service yet. We're finalizing the registration and paperwork for it, transfer of ownership. But those two will go to Waikoloa and Waimea, so it'll be in that general area for sure. MS. EVANS: Good to know. Yay. And I believe the Sayre's are doing their annual event. They're bringing it back August 31". Great. Thank you. MR. OKINAKA: You're welcome. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay. Thank you very much. MR. OKINAKA: Thank you very much. Page 12 FC-39 July 9, 2024 CHR. KANEALI'l-KLEINFELDER: Appreciate your time. Thanks for being here. We do have a motion on the floor to close file on Communication 16.3. All in favor? Vote on Comm. 16.3: The motion to close file on Comm. 16.3 was carried by (Filed) the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kdneali'i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. CHR. KANEALI'l-KLEINFELDER: Resolution 552-24, please. 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. 552-24: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI -YEAR LEASE OF REAL PROPERTY FOR THE COUNTY OF HAWAPI OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT Authorizes the Mayor to enter into a five-year lease agreement with Kaneshiro & Sons Enterprise, Limited and Glenn Kaneshiro Partnership, with an approximate monthly cost of $1,827, for office space located at 1990 Kino'ole Street. Reference: Comm. 924 Intr. by: Mr. Kdneali'i-Kleinfelder (B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 552-24. Seconded by Mr. Inaba. CHR. KANEALI'l-KLEINFELDER: We do have Mr. Ventura being here today to help us with any questions. Council Members, discussion on the measure? As well as Ms. Nakagawa. Council Member Lee Loy. MS. LEE LOY: Thank you. Not for you, Hamana. More for our Finance Director. We're in the start of a new fiscal, and I've asked this over time but this would be the second multi -year contract or multi -year lease agreement. And so, just checking, how are we going to be accounting for that? Give me the good news please, Director. Page 13 FC-39 July 9, 2024 (Note: At this time, Finance Director Diane Nakagawa came forward to address the members of the Committee.) MS. NAKAGAWA: Council Member Lee Loy, that is a great question. And as I was reviewing for today's packet, I figured this would come up, so it's an important point. We are well on track in looking at our leases, but this one may have been one that I'll need to add on to the list to make sure we have in our property leases as well, but like our equipment and other leases, departments have been submitting all their leases and we will have a report shortly. But good point to remember. This one will be added on there as well. MS. LEE LOY: Thank you. Thank you, Director. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Evans. MS. EVANS: Hamana, I was curious. What is the lease rate for office space in Hilo? (Note: At this time, Property Manager Hamana Ventura came forward to address the members of the Committee.) MR. VENTURA: Good afternoon. Hamana Ventura, Property Manager. So, depending on location, so forth, it can range from $1.75 up to $2.00 a square foot. We're starting to get some new builds coming in. so, that's where we are on this. MS. EVANS: Does a contract like this have a Consumer Price Index (CPI) adjustment every year? MR. VENTURA: This one does not. MS. EVANS: Okay. MR. VENTURA: But we do have three percent annual increases. MS. EVANS: A three percent annual. And then, also, do they do a passthrough on all the common area cost in addition to that? MR. VENTURA: Correct. MS. EVANS: Okay. So, to the point, five years, so it's continuing to ratchet up in terms of how it impacts the budget? Iu1mnagaim MS. EVANS: Okay. So, I'm not quite sure what you've put in place that reflects all that. But I'm assuming that — Page 1.4 FC-39 July 9, 2024 MR. VENTURA: So, when we go through our budgeting process, we're looking at, like you said, taking in account CPI or adjustments. So, rule of thumb is three to five percent. What we've learned from lockdown is that we had some jumps. And so, when we future budget we look for —leaning towards more of five percent increases. MS. EVANS: Okay. MR. VENTURA: So, it's part of our process going forward when we calculate budget. MS. EVANS: Yeah. To make sure you have it there? MR. VENTURA: Correct. MS. EVANS: Diane, did you want to comment on that? MS. NAKAGAWA: Yeah. I was just going to add. You know, each year as we go through the budget process, these items are identified when we work with the departments. But I think what we've been talking about is the more comprehensive look at those outer year commitments so that there is a document, a report that gives you a clear idea of what those commitments are in comparison with the whole budget. So, that is what we were just speaking about that we're working on, which will have leases included in that as well. MS. EVANS: I think the important thing is this is really the fix cost of government. It's fixed if you make that commitment. Yeah. Okay. Thank you. Thank you, Chair. I yield. CHR. KANEALI'l-KLEINFELDER: Thank you. Council Member Inaba. MR. INABA: Yeah. For this specific office, Administrator Kunz, who occupies this office right now? (Note: At this time, Housing Administrator Susan Kunz came forward to address the members of the Committee.) MS. KUNZ: Good afternoon. This is Susan Kunz, Housing Administrator. That office is occupied by our community engagement group. So, there are six staff members who are housed there. MR. INABA: And how long have they been there? MS. KUNZ: They've been there from last year. So, during that one year period —I don't have a start date, not right off the top of my head. Page 15 FC-39 Vote on Res. 552-24: (Approved) BILLS FOR ORDINANCES July 9, 2024 MR. INABA: Is there a current lease in place for this, Mr. Ventura? MS. KUNZ: Yes. MR. INABA: Okay. Thank you very much. Chair, I yield. CHR. KANEALI'l-KLEINFELDER: Thank you. Okay, seeing no discussion. Mr. Ventura, I'm sorry you said $1.50 to $1.75 per square foot? So, $1.75 for the square feet of this suite would be $1,200. So, it would be $685 left, puts us — that's just the fees to be in the building? MR. VENTURA: Common area maintenance, GET (General Excise Tax), bathroom. CHR. KANEALI'l-KLEINFELDER: Okay. Thank you. MR. VENTURA: Thank you. CHR. KANEALI'l-KLEINFELDER: Okay. Beautiful. Okay, we have the motion on the floor. Thank you for your time today, by the way. Motion is on the floor to forward Resolution 552-24 to Council with a favorable recommendation. All in favor? The motion to recommend adoption of Res. 552-24 was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kdneali'i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. The Chair directed the Committee to proceed to the next order of business, Bills for Ordinances. Page 16 FC-39 July 9, 2024 Bill 177: AMENDS ORDINANCE NO. 24-32, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAPI FOR THE FISCAL YEAR ENDING JUNE 30,2025 Appropriates revenues in the Federal Grants — Justice Assistance Grant -Special Response Team Capability Enhancement grant account ($50,537); and appropriates the same to the Justice Assistance Grant -Special Response Team Capability Enhancement grant account, to be used to fund travel and training to increase the efficiency and readiness of the Police Department's Special Response Team. Reference: Comm. 923 Intr. by: Mr. Kdneali'i-Kleinfelder (B/R) Vote on Bill 177: Ms. Lee Loy moved to recommend passage of Bill 177 on (Approved) first reading. Seconded by Mr. Inaba and was carried by the following voice vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kdneali'i-Kleinfelder — 8. Noes: None. Absent: Committee Member Evans — 1. Excused: None. ADJOURN- There being no further business on our agenda today, Acting Chair Inaba MENT: adjourned the meeting at 1:35 p.m. Thank you very much. Approved: Mr. Matt Keali'i-Klei nfelder, Chair (Date) Finance Corrui1ittee MK/tk Page 17