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HomeMy WebLinkAboutMIN COUNCIL 2024-07-24 2022-2024 Hawaii County Council 441h Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawaii July 24, 2024 INVOCATION: Pastor Brian Keiser of Luteran Church of the Holy Trinity gave the morning's invocation. CALL TO The regular meeting of the Hawaii County Council was called to order at ORDER: 9:02 a.m., in the Council Chambers, Kailua-Kona, by Ms. Heather L. Kimball, Chair. ROLL CALL: Present: Ms. Heather L. Kimball, Chair Mr. Holeka Goro Inaba, Vice Chair Ms. Cindy Evans, Member Ms. Michelle M. Galimba, Member Ms. Jenn Kagiwada, Member Mr. Matt Kdneali`i-Kleinfelder, Member (via videoconference from Hilo) Ms. Ashley L. Kierkiewicz, Member(via videoconference from Hilo) Ms. Susan L. K. Lee Loy, Member Ms. Rebecca Villegas, Member PLEDGE OF The Chair directed the Council to the next order of business, Pledge of ALLEGIANCE: Allegiance. (At this time, Acting County Clerk Jacob Perry led the Council in the Pledge of Allegiance.) PETITIONS, The Chair directed the Council to proceed to the next order of business, Petitions, MEMORIALS, Memorials, Certificates of Merit, and Expressions of Condolence. CERTIFICATES OF MERIT, AND (Note: At this time: EXPRESSIONS OF 1) Ms. Evans presented Certificates of Merit to the Waimea Arts Council in CONDOLENCE: recognition of 50 years of dedication to the arts in South Kohala; 2) Mr. Inaba presented the July 2024 Hdweo Award to Emergency Medical Services Specialist Michael Lam of the Hawaii Fire Department; and 3) Mr. Inaba presented a Certificate of Merit honoring Lifeguard Appreciation Day and acknowledging the 2024 Hawaii Lifeguard Appreciation Week in Hawaii County.) (Note: A recess was called at the conclusion of the presentations.) Hawaii County Council-44 July 24,2024 STATEMENTS The Chair directed the Council to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: The following individuals registered to speak and came forward when called by the Chair: Dana Miyake: Res. 558-24 (Comm. 933), in support. (representing Hawaiian Canoe Racing Association) Cindy Freitas: Bill 166, Draft 2 (Comm. 885.9), in opposition. Marry Wakat: Bill 166, Draft 2 (Comm. 885.9), in opposition. Karie Wakat: Bill 166, Draft 2 (Comm. 885.9), in opposition. Kris Adair: Res. 556-24 (Comm. 928), in support. Joshua Montgomery: Res. 556-24 (Comm. 928), in support. Caryl Burns: Res. 556-24 (Comm. 928), in support. (See Comm. 928.8) Isaac Tanaka: Bill 166, Draft 2 (Comm. 885.9), in support. Change Order As directed by the Chair and with no objection from the Council Members, the of Business: following items were taken out of order: Bill 166: AMENDS SECTION 25-8-3 (NORTH KONA DISTRICT ZONE MAP), (Draft 2) ARTICLE 8, CHAPTER 25 (ZONING) OF THE HAWAII COUNTY CODE 1983 (2016 EDITION, AS AMENDED), BY CHANGING THE DISTRICT CLASSIFICATION FROM AGRICULTURAL—20 ACRES (A-20a) TO FAMILY AGRICULTURAL—5 ACRES (FA-5a) AT NORTH KONA, HAWAII, COVERED BY TAX MAP KEY: 7-3-024:003 (Applicant: Ryan Leese) (Area: 21.942 acres) The Leeward Planning Commission forwards its favorable recommendation for this change of zone request, which would allow the applicant to subdivide the property into four lots. The property is located on the southwest corner of the Kaloko Drive/Ha6 Street intersection in the Kaloko Mauka Subdivision. Reference: Comm. 885.9 Intr. by: Mr. Inaba(B/R) First Reading: July 10, 2024 Motion to Approve: Mr. Inaba moved to pass Bill 166, Draft 2, on second and final reading. Seconded by Ms. Lee Loy. Page 2 Hawaii County Council-44 July 24,2024 CHR. KIMBALL: With that, I will invite the applicant and the applicant's representative to come forward, and we will begin our final deliberations. Any discussion from the body on this item? Council Member Evans. MS. EVANS: Thank you. It's kind of a legal question, and it has to do with covenant. The thing that I'm really pleased to see is the willingness to put 80 percent of the entire lot to be retained in forest; that you have to have a covenant recorded before you can ever get the issuance of a final subdivision approval. Can you tell us, can a covenant be broken in the future? Is this in perpetuity? (Note: At this time, Land Use Planning Consultant Daryn Arai and Ryan Leese, applicant and co-owner, came forward to address the members of the Council.) MR. ARAI: Good morning, Council Member Evans, Chair Kimball, Vice Chair Inaba, and members of the Council. My name is Daryn Arai. I'm assisting the applicant, Ryan Leese, with this application before you this morning, and Mr. Leese is seated to my left. Regarding a covenant, it can be broken. I'm not a real estate expert, but I think if you have enough people affected by the covenant voting the majority to amend something, it can be accomplished. But what makes this situation unique is you have an ordinance, if approved, that would layer on top of the property. So, they cannot break that covenant because by doing so, they actually will violate the terms of the zoning ordinance, which is law. MS. EVANS: So, Corporation Counsel, is that a correct assumption, that you cannot break the ordinance that says there needs to be a covenant? So, the covenant cannot be broken if the ordinance is not changed. (Note: At this time, Corporation Counsel Elizabeth Strance came forward to address the members of the Council.) MS. STRANCE: Good morning, Elizabeth Strance, Corporation Counsel. If the requirement of the ordinance contains the terms of the covenant, that is a correct statement. So, it'll be a violation of the ordinance to violate the covenant, or the applicant would need to come back to Council to amend the ordinance. MS. EVANS: Okay, thank you. Thank you very much. So, to the applicant, thank you so much for the willingness and understanding the importance of the forest to the ecosystem. And I can support this because of your willingness to put 80 percent of this 20 acres into a covenant retaining the forest. So, thank you, I yield. Page 3 Hawaii County Council-44 July 24,2024 CHR. KIMBALL: Thank you, Council Member Evans. Council Member Villegas. MS. VILLEGAS: Welcome back. First off, I just want to make a slight correction that the 80 percent of forest is not being kept as a forest because of a benevolent willingness of the landowners. That's a requirement now because of decisions made and policies passed by some of our predecessors here on the Council. So, I want to make that very clear. This is not a benevolent gesture or agreement by the landowners. I also want to point out that there are plenty of lots and homes available for sale on the west side of the Big Island right now. So, I would refute the statement that there aren't other places to purchase. I also want to point out to my colleagues, yesterday we heard and deliberated over and talked about the parameters for ADUs (Accessory Dwelling Units) and policies coming forward that could potentially allow people to build three additional dwellings on a piece of property. And I want you to take that into consideration. These 20 acres is cut up into four lots, and each lot would then have the potential to have four dwellings on it. What does that leave of our forest? I go to Kaloko very often to spend time in the forest to gather; to get grounded and to show my gratitude for the species that are still in existence there. I watched that forest get carved up over the decades. I have a lot of friends who bought lots there, and some have been subdivided into ten acres, but a number of them now are becoming smaller and smaller parcels. So, I find it really difficult when we sit here and talk about climate action plans and creation of an Office of Sustainability, Climate, Equity, and Resilience (OSCER), and we claim to stand behind those value systems. But when something like this comes before us, which is an opportunity for our decisions to be a reflection of those values, that all too easily we listen to the people who are hired to represent their clients and advocate for us to allow actions that are contrary to what we state. So, I'm sorry gentlemen. Once again, I will not be supporting this, and you know, we've obviously as a Council gone one way and then the other. But you know where I stand, and it's not personal, and you are wonderful, obviously, members of the community. Believe me, I would love to have a five-acre parcel in Kaloko and build a dream home, but I can't, and I'm not going to. I bought 20 acres. I'd like to think I would keep that 20 acres and consider it the greatest honor and privilege to become the steward of that whole 20 acres, and to get to participate in that ecosystem and protect the native species that reside there. I yield. Page 4 Hawaii County Council-44 July 24,2024 CHR. KIMBALL: Thank you, Council Member Villegas. Any other questions, comments? One moment, Mr. Arai, I'm going to check in over in Hilo. MR. KANEALI`I-KLEINFELDER: Chair? CHR. KIMBALL: Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you. I've listened to this bill with interest because it balances two things which I hold dear. The ecosystems, which we love, in our highland and our native forest and our native species and the way things are. And I balance that with my other perspective, which is if this was my children and that was my 20 acres, and my children wanted to live on one of those lots and it was allowable, or if it was anyone on this Council or anyone else, I believe I would say yes to this. It's important for all of us to have our perspectives. It's also important for us to understand that we as a species are growing and our population is increasing. While we do have huge amounts of land, saying "no"to things like this because we don't want to impact our land puts us in an interesting place. And I come back to my children. I just keep coming back to my kids. If I wanted the ability to provide my children, and I'm not saying these folks are my children, but if I wanted to provide my children a place to live that was near me, and I have been approached my many people in my district for the same thing, ultimately I would want the Council to say "yes." Because, that provides my `ohana an ability to live within the rights of the Planning Department and our zoning and have that ability to create that beautiful picture from my perspective. I would be heartbroken if the Council were to say "no" at that moment, that that dream was not realizable. Because although the Planning and the zoning and everything else would allow for it, the Council said "no"because we're preserving our land. And I would have a hard time with that because my children are Native Hawaiian. So, I am going to say, "yes"today for some of the reasons that have been spoken to in the past and today, but more so, because I feel this is a conscientious effort. And if the treatment that I'm providing today was to come back to me at some point, I think that's the most that I can ask. I do respect the opinion and perspective of my fellow Council Members in Kona, and the perspectives of our community members who came and testified both for and against. But I do feel this is an equitable way to move forward, and this is the way that I would want to be treated if I came to Council and asked for the same thing. So, mahalo for understanding and thank you, Chair, I yield. CHR. KIMBALL: Thank you, Council Member Kaneali`i-Kleinfelder. Anyone else, briefly? Page 5 Hawaii County Council-44 July 24,2024 MS. KIERKIEWICZ: Chair? CHR. KIMBALL: Let me recognize Council Member Kagiwada and I'll come back to you, Council Member Kierkiewicz. MS. KAGIWADA: Thank you, Chair. So, this one is hard for me. I also recognize what my colleague said, which is your willingness to preserve the 80 percent is not actually a willingness; that is what you have to do. It's not anything that you did above and beyond what is the law. I had hoped that with each of you, you know, wanting a five-acre parcel that maybe you wouldn't need to clear a full acre for each one, because you have professed your concern and care for the environment and the cloud forest. And I feel like, you know, clearing over an acre, I guess it is, of a five-acre parcel is not really demonstrating that you are willing to really show, with making real changes and real commitments here, anything different than the bare minimum that you are required to do. So, to me, this is not an issue of low-income or workforce housing or density in an urban area. This is an issue of people with means, although I know you're saying that you wouldn't be able to do this in a different way, but people with means who are able to buy a property and just want to you have a lovely dream, and I think that's fine, but I don't think I can support this even though I do agree with the testifier who said some of the people coming out here are the same people who have basically cleared their properties or probably cleared more than 20 percent on their properties in the same development. I think that's disingenuous for those people to be out here protesting this. But I can't support this at this time. So, I apologize because I know you guys are good people and you want to do what's right for your families, but I do think that we need to save this cloud forest. So, I will voting, "no." CHR. KIMBALL: Thank you, Council Member Kagiwada. Going to Council Member Kierkiewicz in Hilo. MS. KIERKIEWICZ: Thank you, Chair. I want to continue to voice my support for this rezone request. I supported this request in Committee and at first reading. I know that resolutions were adopted in the '90's. Resolutions, these are symbolic statements, calling for the Kaloko area to be preserved in forest, but should there be any development, that these resolutions be taken into consideration. So, I do appreciate the applicant's commitment to conservation and sustainability and for preserving 80 percent of this lot as forest. That's significant. And I think it sets a really wonderful template for how we think about, you know, future rezoning requests that come to this body. Page 6 Hawaii County Council-44 July 24,2024 I did want to take a moment to acknowledge that the applicants are joining us in Kona and ask that they address this Council at this time. Daryn, if you could introduce who is there with you, we would love the opportunity to hear from the applicants. MR. ARAI: Thank you, Council Member Kierkiewicz. Joining us today are associates of the applicant, Ryan Leese: Dr. Michael Hughes and Mr. Seth Roosevelt. And they're approaching the dais now. CHR. KIMBALL: Mr. Clerk, I'm going to request that since we have previously heard from the applicant, that you please time the statements from the applicants for three minutes each. Thank you. MR. LEESE: Aloha, guys. Thank you for the time today and in previous meetings. I'm just going to keep this very brief. I appreciate everyone's inputs, both neighbors, Council Members, both in opposition and in support. As a community, we make decisions and we need to hear from all sides. I just wanted to reiterate, you know, my story a little bit, and obviously why we're doing this. This is kind of our path to homeownership. You know, my girlfriend, she's a Ukrainian immigrant. She goes to the Physician's Assistant school here in Kona. And you know, sort of my dream is to create our first house together with our kids, and she's going to stay and work in the community here. Again, thank you guys for the time today, and really appreciate everything. Thank you. (Note: At this time, Seth Roosevelt, co-owner, came forward to address the members of the Council.) MR. ROSEVELT: Good morning, Council Members. My name is Seth Roosevelt. I want to thank you for your time and consideration in this matter as well. And not to be too redundant, but like Ryan was saying, we saw this as a wonderful opportunity to build a home here and do it a lot more affordably than some other ways of being able to purchase a home here. You know, the love for Kaloko area that I have, and I know that we all share, we just saw this as a great opportunity to, you know, have a home here. All three of us, of course, we rent here, and we all contribute to the community and definitely appreciate your consideration in this matter. Thank you. (Note: At this time, Michael Hughes came forward to address the members of the Council.) MR. HUGHES: Good morning, Council. Thank you so much for having us to be able to speak here today. My name is Dr. Michael Hughes. This Bill 166 gives us the provision to be able to protect the forest 80 percent in perpetuity. It doesn't necessarily mean that the 20 percent that's allowed to be cleared will actually be cleared. Page 7 Hawaii County Council-44 July 24,2024 What we're looking for is essentially an opportunity to afford to live and work here, maintain our citizenship here, our residency here, so we can take care of the community specifically. This is not a matter of trying to overwhelm a very protected and beautiful area. Essentially, we just want to be able to represent this community the best that we can and, obviously, being the best stewards that we possibly can. I appreciate all the opposition. I understand your point of view. Obviously, we have a different perspective. We're greatly honored for the opportunity to be able to have this bill presented to you guys, and we thank you so very much for the thoughts and considerations. Your future is in our hands, so I appreciate you guys. MS. KIERKIEWICZ: Thank you for being here, and I really appreciate you handling this rezone request with so much grace and humility. Again, I will be continuing to support this request. I yield. CHR. KIMBALL: Thank you, Council Member Kierkiewicz. Council Member Galimba. MS. GALIMBA: Thank you, Chair. Just a quick question for Mr. Arai. The 80 percent provision was based on a resolution. Was that a requirement for this rezoning or was it more of something that you sought as a policy? So basically, was it required or not? MR. ARAI: Thank you for the question, Council Member Galimba. The two resolutions basically are considered policy expressions by the Council. They are not law. But they create a foundation upon which to work with. When the application was submitted, these resolutions were clearly known. And as I mentioned in previous testimony, the evidence does show that the application of these resolutions through the enactment of zoning ordinances over the past 27 years that these resolutions had been placed have worked. We've seen areas that have been cleared, and when you look at them, they're not encumbered by any zoning restrictions. So, to quickly answer your question, it is not a requirement. It becomes a requirement through the enactment of a zoning ordinance which then encumbers the property. MS. GALIMBA: Thank you. I just wanted to clarify that for the record, and I continue to support this application. We do have, really, a terrible situation in terms of housing at all levels, as we discussed yesterday. There was a consultant's report. So, folks need to be very creative and sort of proactive in how they go about finding ways to get housing. And this will be a wonderful place to live, no doubt, but they also are putting a lot of work and thought into this project. And so, I continue to support it. Page 8 Hawaii County Council-44 July 24,2024 CHR. KIMBALL: Alright, any further discussion? Seeing none, go ahead, Vice Chair Inaba. MR. INABA: For you folks, there is this 20 percent requirement. Looks like the votes are in favor of the bill passing at this point. I usually say this to projects that sometimes I feel conflicted on, and I've heard, you know, from neighbors in the community, from people I know in the community. I'll just put this out there that, should this bill pass, you folks have represented that you folks will take care of the place. No one's going to hold you to that unless, you know, a complaint is filed for illegal grubbing or something like that. It's on your honor, and it's the full weight of the kupuna and all of the kini akua of those lands that will come to you should you not choose to uphold your word. So, I'll leave it at that. Thank you. CHR. KIMBALL: Thank you, Vice Chair Inaba. Any further discussion? Seeing none, I'm going to ask the Clerk to do a roll call on this one,please. Vote on Bill 166: The motion to pass Bill 166, Draft 2, on second and final Draft 2 reading was carried by the following roll call vote: (Adopted) Ayes: Council Members Evans, Galimba, Inaba, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, and Chair Kimball —7. Noes: Council Members Kagiwada and Villegas —2. Absent: None. Excused: None. (Note: Mr. Inaba voted "kanalua"then "aye.") CHR. KIMBALL: Thank you very much. Appreciate that. Thank you for being here. MR. ARAI: Thank you for your thoughtful consideration. CHR. KIMBALL: We will now move to Resolution 556-24, please. Page 9 Hawaii County Council-44 July 24,2024 Res. 556-24: REQUESTS THE DEPARTMENT OF RESEARCH AND DEVELOPMENT TO PROCURE A COMPREHENSIVE STUDY ON THE ECONOMIC AND FISCAL IMPACTS OF THE TRANSIENT ACCOMMODATION RENTAL INDUSTRY IN HAWAII COUNTY Seeks an assessment and analysis of rental listings including available rentals, occupancy rates, pricing, geographic distribution, market value of the land/buildings, proximity of owners, number of structures, and other key metrics; economic contributions of the transient accommodation rental industry to Hawaii County's economy; the impact on housing availability and affordability for Hawaii County residents; and the potential feasibility of conversion to long-term housing. Reference: Comm. 928 Intr. by: Ms. Kierkiewicz Approve: GOEAC-146 Motion to Approve: Ms. Kierkiewicz moved to adopt Res. 556-24 and Governmental Operations and External Affairs Committee Report No. 146. Seconded by Ms. Lee Loy. CHR. KIMBALL: Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you. We had a really robust discussion in Committee on this, and I just want to take a moment to acknowledge all of the community members that came out to not just support this particular resolution, but to really help inform it. You know, we have really significant policy changes related to regulation of vacation rentals here on Hawaii Island. There's a lot of information that's out there on the State and the national level. A lot of data, a lot of reports. A lot of reports that actually conflict one another. And what we have going on here on Hawaii Island is so very unique. So, the Department of Research and Development(R&D) has so graciously agreed to help lead the procurement of a study to understand the impacts of the Transient Accommodation Rental Industry here on Hawaii Island. I had the opportunity to connect with the Director on Monday. Thank you very much, Director Adams, for reaching out to just go over all of the comments that folks shared at Committee a couple of weeks ago, to confirm that everything that folks have asked related to evaluating, you know, caring capacity, money staying on this island, impacts to rental rates and cost of homes. These nuances are definitely covered in the bulleted list that is provided in this resolution. So,just look forward to everyone's continued support, and I did want to take a moment to acknowledge that R&D Director Doug Adams is here. Director, do you want to offer any comments to the body as we deliberate on this resolution? Page 10 Hawaii County Council-44 July 24,2024 (Note: At this time, Research and Development Director Douglass Adams came forward to address the members of the Council.) MR. ADAMS: Thank you, Council Member Kierkiewicz. All I would say is that it is our desire to make sure that we provide, in a reasonably quick time period, the kind of information that will allow the Council to make the determinations that they need regarding the bill that you all have been considering. So, that will mean making sure that we're dealing—as you've pointed out, there's a variety of types of reports that have been prepared around the nation talking about these kinds of issues. We want to make sure that we're addressing the specific and unique nature of the issues here on this island, and we'll be working internally within the County and the departments that have—for example, Planning and the Office of Housing and Community Development, and then also with our State agencies, whether it's Research and Analysis in DBEDT (Department of Business, Economic Development and Tourism) or the University of Hawai`i's Economic Research Organization to help us put together a scope that fits the budget but also allows us to acquire the information that we need. Thank you. MS. KIERKIEWICZ: Thank you. And I also just want to take a moment to acknowledge that you've received a lot of folks that are wanting to try to help you through this process. But you remain committed to ensuring that this study is conducted with the utmost integrity and transparency in a very balanced way so that we are getting good solid accurate information, so that we can deliberate, you know, positively on Bills 121 and make any changes that are necessary that come from this report. MR. ADAMS: Thank you, Council Member. That's exactly right. MS. KIERKIEWICZ: Thank you. Chair, I yield. CHR. KIMBALL: Thank you, Council Member. Council Member Galimba. MS. GALIMBA: Thank you. I'd say I am in support. I previously stated I really want to make sure that this resolution is balanced to look at both impacts and benefits. And I think that is, as Council Member Kierkiewicz has stated, implied in the bullet points. But I just kind of wanted to underline the impacts part. Another thing that I would really like to see, if possible, would be a map of where the short-term vacation, or TARS (transient accommodation rentals) are. And this is sort of based on an experience I had last week driving down to Kealakekua Bay, and basically seeing that almost every house down there was a short-term vacation rental, which was actually kind of shocking to me. So, I would like to see a map of—and obviously, I don't know if we can do the entire island, or Page 11 Hawaii County Council-44 July 24,2024 maybe we can with GIS (Geographical Information System), but certain areas, perhaps a pretty fine-grained map, to see those kinds of impacts might be really helpful. And with that, I yield. CHR. KIMBALL: Thank you, Council Member Galimba. Anyone else? Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. I am in support of doing this study, but I want to be really clear that I refute any implication that we may be willing to prioritize the making of money by non-residents and recent transplants here over the needs of our residents and the quality of life of our people. So, I hope that that is not what people are thinking this study is about. And that this study does not stop the registration and the regulation of this booming industry, which I think is a necessity, but that it is used to gather information that may inform perhaps appropriate taxation of vacation rentals going forward. And I hope that we gather the right information and that we use this study in the right way. So, I am supportive of the study, and thank you, Council Member Kierkiewicz, for bringing it forward. CHR. KIMBALL: Thank you, Council Member. Council Member Evans. MS. EVANS: Thank you. This is for Director Adams. It's interesting when you do feasibility studies. A lot of it is based on assumptions. So, I'll be looking and hoping that at the beginning when they start their analysis, what their assumptions are going to be, and also, what are we comparing it to. So, for example, this is short-term vacation rentals, but what if you replaced it with people living there full-time, residents versus people who may do long-term rentals there? Because each one of those, if you were to replace, it's like what are you comparing it to? So, the comparisons, the assumptions, I think that's going to be really important in terms of how we look at the report when it comes out. Obviously, the date of the report is February 28, 2025. So, the next Council will be reviewing this report. So, I think it's imperative that we get kind of the assumptions correct at the beginning, so our colleagues in the future will know what we were thinking at this time. I think it's good to understand what the economic impact would be, which is, I take it, the impact to the income stream that might come into the County, how it impacts the County and their ability to, you know, raise taxes. I think it's really important, too, in the bigger picture of what the State Legislature is going to think about it, because there is movement afoot at the State Legislature on things like transient accommodation tax and GET (General Excise Tax). And maybe they'll take up some considerations this next year on changing that. So, when we can't control everything outside of us, it's what can we control within our own wheelhouse. And so, I think it'll be important to understand that, too, Page 12 Hawaii County Council-44 July 24,2024 when you do the studies. So,just a couple comments, and thank you for your leadership on this, because you'll be the one putting out the contract on this. So, thank you, I yield. CHR. KIMBALL: Thank you, Council Member Evans. Coming back to Council Member Inaba. MR. INABA: Yes, thank you. I just want to reiterate what I said at the Committee meeting, and that's to ensure that we have a good solid idea of the financial impact on residents of our County. We need to be able to distinguish that away from total revenue from the industry, understanding that some folks own property here and do their short-term vacation rentals when they're not here. I'm not so much concerned about them. We really need to know how it's going to affect the people that we represent, the residents of this County. Thank you, Director. CHR. KIMBALL: Thank you, Vice Chair Inaba. Council Member Sue Lee Loy. MS. LEE LOY: Thank you, Chair. In support, but I did want to share with the maker and R&D. I had attended the National Association of Counties (NACo) conference. We heard from a subject-matter expert—his name is George McCarthy—who has done a lot of this feasibility study and work along with the geospacing, the mapping opportunities across the country. And there's great information of his work called, "Who Owns America," along with the work that he does with the Lincoln Institute of Land Study; talking to him and talking to the leadership. And thank you, Ms. Kierkiewicz, for your leadership on the Board of Directors at NACo. But they are willing to help provide funding for this study for us. They've done it on Maui, and they had a sampling of it at the conference. And if, offline, I could just share this information with you, Ms. Kierkiewicz, and you, Mr. Adams, I think we have someone who is trigger-ready for us, who has already done this work. Because, this is impacting all of our housing across the country. So, absolutely in support of contributing whatever contingency funds to make this happen, but I also think that with NACo and NACo's funding available for this, and the fact that some of these individuals have already done the work, I think we could turn something around rather quickly and bring it back to the Council. It's all done by third party. They get the information through our appraisers and our Real Property Tax Office, and then kind of recompile it and redistribute it. I am in absolute support of this, but would love to share this information as a pathway on getting this work done for us in the future. Thank you, Chair, I yield. CHR. KIMBALL: Thank you, Council Member Lee Loy. Any further discussion? Yes, Council Member Kaneali`i-Kleinfelder. Page 13 Hawaii County Council-44 July 24,2024 MR. KANEALI`I-KLEINFELDER: Thank you. As I voiced my concerns last time, I looked for some corrections on this resolution, and I haven't seen them. And my problem really is a logical fallacy with the wording. And I go back to Bill 121, which really was the precursor for Resolution 556. (Bill) 121 created chaos in the community. (Resolution) 556 looks to inform the community as to the impact of Bill 121. But as I read through the resolution—and I'm bringing this back up because it hasn't been fixedI'm going to say, "no" again today. The fifth and sixth "WHEREAS" called the basis of Bill 121, as described on the TAR website that was created, that there's an assumption and that these are beliefs. But these were the founding principles of Bill 121, and that, to me, creates a logic problem. I can't say, "yes"to this based on that. I'm also concerned that we're now using taxpayer money. And if Council Member Lee Loy is able to provide some funding from an outside source, great. Providing taxpayer money to fund the study based on legislation that has created the need for the study, I feel like this is a logical,problematic circle we have just put ourselves in. So, I'll be saying, "no"today. Sounds like it'll pass. To Mr. Adams, I wish you the best on this project. So, we won't see results until after January 1", 2025, if I'm remembering correctly. And, yeah,just needed to say that. Thank you. CHR. KIMBALL: Thank you, Council Member. Anyone else? MS. KIERKIEWICZ: Chair, wrap up comments. CHR. KIMBALL: Go ahead, Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you. I appreciate everyone's mana`o on this, even folks that don't see what we are trying to do here. I think that there's a lot of just—folks in the community are seeing a lot of different reports. And to say that vacation rentals are the sole cause of our housing crisis is not true. We've been in a housing crisis since the 1970's. Vacation rentals have an impact for sure, but the bigger problem is our building permitting process and the cost of getting things done. Vacation rentals have certainly allowed people to ensure that they can still live here. Cost of living has increased on Hawaii Island, and this is a way that many constituents in the region of Puna have been able to make ends meet. Desperate times call for a lot of folks to get resourceful and creative. But we have also seen, I think in equal measure, a lot of folks that do not live here taking advantage of the system and operating rentals and money going off island. I think this study will help us to better understand the reality of what is actually Page 14 Hawaii County Council-44 July 24,2024 happening. There's a lot of complex information and data sets that really need to be evaluated that are specific to Hawaii Island. And so, I just want to thank everybody for their comments, and again, Director Adams, your willingness to partner with us to make this study happen. I yield. MS. EVANS: Chair? CHR. KIMBALL: Briefly. I want to move on. Go ahead, Council Member Evans. MS. EVANS: I think there's another benefit to this study that has yet to be mentioned, and that is how much of our economy is based on tourism, because we want to diversify the economy. We keep giving an opportunity for more and more tourists to come through these transient accommodation rentals. And so, this is a point in time. It will really show, especially for policymakers who are very committed to diversifying the economy, to really understanding what this economic impact and what our economy is on this island. Thank you, I yield. CHR. KIMBALL: Thank you, Council Member Evans. Any further comments? Seeing none, I will briefly just refer, particularly Council Member Kaneali`i- Kleinfelder, but all of us back to the report that was provided us around Chapter 11 yesterday, that indicated the percentage of homes that are both vacant and owned by outside owners in the County right now. As Council Member Kierkiewicz said, there are multiple things that relate to our housing crisis, including the cost and the time it takes to build, including people being priced out of their homes, and to some extent, including housing being used for other uses than residential housing. I do think this resolution and the study will provide meaningful information around all the things my colleagues have talked about today. I am still committed, though, from the position of(Bill) 121, which at this point requires a registration, that we can continue to proceed with that effort and amend it. And I think as we move forward, we may make tweaks here and there, but the fact is that(Bill) 121 does not shut anybody down that is operating legally. It's a registration process. So, with that I will ask the Clerk to please do a roll call vote for us. Thank you. Page 15 Hawaii County Council-44 July 24,2024 Vote on Res. 556-24: The motion to adopt Res. 556-24 and Governmental (Adopted) Operations and External Affairs Committee Report No. 146 was carried by the following roll call vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball -8. Noes: Council Member Kaneali`i-Kleinfelder- 1. Absent: None. Excused: None. CHR. KIMBALL: Thank you, Mr. Clerk. If you would, I'd like to now go to Resolution 546-24 at the top of the agenda. Return to Order The Chair directed the Council to return to the order of business. of Business: ORDER OF The Chair directed the Council to proceed to the next order of business, Order of RESOLUTIONS: Resolutions. (Note: Items in this category were taken up previously, out of order.) Res. 546-24: AUTHORIZES THE DIRECTOR OF FINANCE TO ENTER INTO NEGOTIATIONS FOR THE ACQUISITION OF LANDS AND CONSERVATION EASEMENTS FOR ALL OR A PORTION OF THE PROPERTIES IDENTIFIED BY TAX MAP KEYS: 6-2-001:018, 019, 051, 074, 075, 088, 089; 6-2-002:006; 6-2-007:001; 6-4-001:032, 053, 054, 060, 114, 146, 155, 999; 6-5-003:001, 002, 004, 005, 031, 044, 045; 6-5-004:007, 012, 015, 025, 056, 063, 099, 108; 6-5-005:001, 009, 018, 020, 021, 023, 025; 6-5-009:102; 6-6-001:002, 010, 038, 050, 077; 6-6-003:006, 007, 010, AND 013, SITUATED IN THE AHUPUA`A OF LALAMILO, DISTRICT OF SOUTH KOHALA, UTILIZING THE PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION FUND The County seeks to acquire approximately 90 acres of trail easements for the Ke Ala Kahawai `O Waimea community project, which acquisition would occur in six major increments designed to span from the town of Kamuela to the shoreline south of Kawaihae, and eventually connect into the Ala Kahakai National Historic Trail system. The acquisition of trail easements is listed as priority number three in the 2023 Annual Report of the Public Access, Open Space, and Natural Resources Preservation Commission (PONC). Reference: Comm. 915 Intr. by: Ms. Evans Approve: LAAC-65 Point of Order: MS. EVANS: So, for a point of order, is this considered first reading? Page 16 Hawaii County Council-44 July 24,2024 CHR. KIMBALL: There's only one reading in Council for resolutions. MS. EVANS: For resolutions. Thank you. Motion to Approve: Ms. Evans moved to adopt Res. 546-24 and Legislative Approvals and Acquisitions Committee Report No. 65. Seconded by Mr. Inaba. CHR. KIMBALL: Council Member Evans. MS. EVANS: Thank you. We had a really great discussion on it in Committee hearing, and I ask for your favorable support. This will be a wonderful way to connect Waimea through the trails down to the coast. And it's a very rich cultural area. I think it's a great project and very supported by my community. Thank you, I yield. CHR. KIMBALL: Thank you. Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. Just very happy to support. Looks like a great project, and I know it'll take a while but yeah, looking forward to seeing it unfold. CHR. KIMBALL: Thank you, Council Member Kagiwada. Anyone else? Council Member Lee Loy. MS. LEE LOY: Thank you, Chair. In support. If I could have Hamana Ventura come forward. At the Committee meeting after we passed the resolution, he and I had sat outside thinking long and hard about this particular PONC (Public Access, Open Space, and Natural Resources Preservation Commission) acquisition because it spans so much area. And I just wanted to bring this up again in an effort of transparency. We talked about the Waimea Trails and Greenway Program that actually talked about horse trails. And I just wanted to lean in a little bit, Hamana, about how some of this PONC acquisition—we're always thinking about walking trails or biking trails. But there could actually be spaces where this would be preserved in perpetuity for also our paniolo and trails for horses. Can you share a little bit about that? (Note: At this time, Property Manager Hamana Ventura, Finance Department, came forward to address the members of the Council.) MR. VENTURA: Sure. Aloha, Council. Hamana Ventura, Property Manager. Council Member Lee Loy and I, we had this cool little conversation in addition to walking trails, what other multimodal operations could take place out there. And so, when she talked about horses, I've got to admit I'm partial to horses. My family are ranchers in the Waimea area, Jaime and Queenie Dowsett. Page 17 Hawaii County Council-44 July 24,2024 So, I leave it up to the makers and to the suggesters, as we unpack this, to perhaps—we'll lean on them for more direction. But it was part of the conversation, and I thank you for bringing it forward. MS. LEE LOY: Thanks, Mr. Ventura, and I apologize for putting you on the spot, but I just really appreciated you allowing me to plant the seed, right. And to the point of multimodal: There's spaces definitely that will lend itself to hiking and walking, but there might be spaces throughout the phasing of this entire trail where other individuals could help steward. And here we would have an opportunity with our Horse Owners Association to begin to architect those spaces for us. So, thank you. I think we have additional support. Thank you for being here. I yield. CHR. KIMBALL: Thank you, Council Member Lee Loy. Alright, seeing no further comments, all those in favor or approving Resolution 546-24, please say, "aye." Any opposed? Vote on Res. 546-24: The motion to adopt Res. 546-24 and Legislative (Adopted) Approvals and Acquisitions Committee Report No. 65 was carried by the following voice vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball –8. Noes: None. Absent: Council Member Kaneali`i-Kleinfelder– 1. Excused: None. CHR. KIMBALL: Resolution 546-24 is approved. If we can now go to Bill 104, Draft 6, please, under Bills for First Reading. Change Order As directed by the Chair and with no objection from the Council Members, the of Business: following items were taken out of order: STATEMENTS The Chair directed the Council to proceed to the next order of business, FROM THE Statements from the Public. PUBLIC ON BILL 104 The following individual registered to speak and came forward when called by (DRAFT 6) the Chair: (COMM. 600.44): Kyra Bronson: In support. (See Comm. 600.46) Page 18 Hawaii County Council-44 July 24,2024 Bill 104: AMENDS CHAPTER 19, ARTICLE 1, SECTION 19-2; CHAPTER 19, (Draft 6) ARTICLE7, SECTION 19-53; AND CHAPTER 19, ARTICLE 11, SECTION 19-90, OF THE HAWAII 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 12 consecutive months and under a signed lease for six consecutive months or more to the same tenant. Reference: Comm. 600.44 Intr. by: Ms. Kagiwada and Ms. Galimba Approve: FC-170 Postponed: July 10, 2024 (Note: There is a motion by Ms. Kagiwada, seconded by Ms. Galimba, to pass Bill 104, Draft 6, on first reading.) ; and Comm. 600.45: From Council Member Jenn Kagiwada, dated July 11, 2024, transmitting a slide from the Real Property Tax Division Office relating to Bill 104, Draft 6. CHR. KIMBALL: Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. I'm going to ask Real Property Tax Administrator Lisa Miura to please join us. And do we have that slide available to put up on the screen? MR. ARACELEY: Not at this time, but we can load it up. MS. KAGIWADA: Do we have theI don't even see the slide in here. MR. ARACELEY: It should be on the back on your boards. MS. KAGIWADA: Oh, in the packet. MR. ARACELEY: On your boards in the back of Bill 104. The last slide should be listed. MS. KAGIWADA: Let me find it. So many versions. Okay. There it is. So, we have this in front of us, Lisa, but maybe you can walk everybody through. So, one of the questions in our last meeting was, how will the timing of this all work? Because we have changed the start date to be the beginning of 2026 in order to accommodate Real Property Tax's ability to make the rules and regulations, get the forms and all that stuff and get the information out to the public. So, if you could explain the timeline to us. It looks like this if people can find it. Page 19 Hawaii County Council-44 July 24,2024 (Note: At this time, Real Property Tax Administrator Lisa Miura, Finance Department, came forward to address the members of the Council.) MS. MIURA: Good morning. Lisa Miura, Real Property Tax Administrator, and I'd like to point out that Keita Jo, the Assistant Administrator, is also in Hilo. On June 18'', I wasn't there for your meeting, and I know it was postponed at the last Council hearing. So, we did create a timeline, not to just keep us—make sure we understood and we are interpreting this bill correctly, but also for the Council Members, as I know there were other discussions on when the tax class rate was created. So, assuming this bill passes, then our office, Real Property Tax Division under the Finance Director, would need to create a rule on how we would administer this program. We'd also have to create and post forms online so applicants could apply between January 1, 2025, and December 31, 2025. Right now, the bill has an annual application due date. January 1, 2026, is when Real Property sets our values. That's our assessment date every year. So, we'd have to be able to include the long-term rental class on top of all the assessments we mail out in March. By June 2026, that's when Council sets the tax rates for the 2026 year. Then from July 1, 2026, through June 30, 2027, that's the first year that owners that have applied for the program will see the benefits from this program application that they applied for by December 31, 2025. MS. KAGIWADA: Thank you for sharing that. So, along with this timeline, which pushes it out much farther than we had wanted it, we had hoped to get this in effect to help people sooner and to also collect the information about who is doing long-term rentals sooner. But with this timeline, I just want to reiterate that if we pass Bill 174, that this really deals with stand-alone homes, condos, apartments that are not part of a homeowner's main property. So, we're just looking at creating a separate tax class for long-term rentals, because we feel like long-term rentals, vacant properties, timeshare properties, and vacation rentals do not belong in the same tax class. And if we want to tax things appropriately, we need to pull long-term rentals out from those other things. Otherwise, even if there's not a large number of them, if we attempt to, say, raise tax rates on vacation rentals, we will also be harming people who are renting to our residents, and that's what we are trying to avoid. With that I yield and see who else wants to ask questions or weigh in. CHR. KIMBALL: Council Member Galimba. MS. GALIMBA: Thank you. I just wanted to thank our testifier for her information. We did not arrange for that in any way. She just came forward and Page 20 Hawaii County Council-44 July 24,2024 gave us that very specific information, which I think is really helpful. So, thank you so much. And it underlines on what we're trying to do here, because as admirable as the affordable rental class is, it is really not working that well for providing affordable rentals. So, really our bill is a small part of addressing that issue of providing some recognition to the landowners out there and incentive to provide long-term rentals. We would like to do more, but we don't want to affect affordable rentals by putting the long-term lower. That would not make sense. So, this is just one small piece of an overall effort to address the issues that we have. Again, going back to the testifier's data that she provided, it explains why there are only about 100 affordable rental units on the west side. So, it is really an important thing for us to provide what we can as far as incentives for long-term rentals that will fit the environment here on the west, as well as other parts of the island. And with that, I yield. CHR. KIMBALL: Thank you, Council Member Galimba. Council Member Evans. MS. EVANS: Thank you. Hi, good to see you. Just a question. So, I'm looking at what the rate is going to be, and it says, "shall not be lower than the affordable rental housing tax rate rounded to the nearest five cents." So, the actual rate will be determined by the Council in that June 20'h meeting? They'll put the rate in? I'm just kind of curious how it will get applied. MS. MIURA: I'm not sure what draft we're on. MS. EVANS: Oh, I'm sorry. Draft 6. MS. MIURA: Draft 6, okay. So, I don't know if Draft 6 has that, because I know the Draft 5 I have had it, and then at some point, I think at the last Council meeting it got removed. MS. EVANS: Draft 6 has it. MS. MIURA: It does? MS. EVANS: Yeah. MS. MIURA: Okay. MS. EVANS: It says it shall not be lower than the affordable rental housing tax rate rounded to the nearest five cents. So, does that mean it's equal? In your mind, would it be the same rate as, or will the Council have to put it in their schedule? Page 21 Hawaii County Council-44 July 24,2024 MS. MIURA: Yes, you would have to put it in your schedule, and I know there was some concern about that. So, I have a couple of clarifying comments at least to make at some point, if I could this morning. But when it comes to the tax rate, because this is for the 2026 tax year, Council wouldn't be setting that until the summer of 2026. So, if we're doing a soft rollout, when there's no tax rate set ahead of time,which you technically can't until the budget gets sent to you, then it's going to be a soft rollout because taxpayers don't know if it's worth it for them to apply if there's noI think at one point there was a percentage of something that was tied to, and that got removed. I believe the intent is to not have it lower than the affordable rental or homeowner tax class, which I think is advisable or a good idea to not have it lower. But it will need to be set at some point. I'm unsure how many applications we'll get. MS. EVANS: So, if you said it's equal to what the affordable rental housing tax rate is, then you cannot. Okay. You have to put it in the schedule, right. MS. MIURA: Sorry, I didn't know what the (inaudible) MS. EVANS: The rate has to go in Code under a schedule, correct. You can't say it's equal to affordable tax rates. MS. MIURA: Correct. Because I don't know if that's what you guys are you can change any tax rate. But I apologize, I have Draft 5 in front of me. MS. EVANS: Okay, alright. Then I had one other question, and that is, I'm looking at the eligibility for long-term rental class. The first bullet says that it has to be occupied for 12 consecutive months and under a signed lease for six months or more. But then you get down to Section M, the breach of a long-term rental class. It's the failure of the property owner to maintain the lease for at least six months to the same tenant, shall breach the classification. So, I guess the way this is drafted, do those kind of match each other? It says you have to be with the same tenant for six months, is all you need where you breach. But then at the top, it will be 12 consecutive months and under a signed lease for six consecutive months or more to the same tenant. So, I'm a little confused, sorry. Real property occupied 12 consecutive months, basically, by the same tenant under a signed lease for six months or more. And then you have down the breach. So, somehow it doesn't feel like it's matching. MS. MIURA: Can I share what Real Property believes the intent is? And I'm learning, after our last set of rules, the intent is very important to clarify for our office at County Council, especially when Corporation Counsel is present. And for the record, when it's reviewed by the public, because the public doesn't always review it at the time the Code is being changed. So, I believe it was taken Page 22 Hawaii County Council-44 July 24,2024 from probably the Affordable Rental Program. For clarification purposes, Real Property always views long-term as 180 days or more. If the lease says six months, we don't count which months were 28 days, which were 30. We just assume the 180 days are met when it says six months or more. Anything less than 180 days is a whole other thing. When someone intends to do a long-term rental similar to affordable rental, they're looking at the intent of the property owner to lease that property out. I realize they can—we hear all the time people do month-to-month leases. And that would be something I'd need to clarify if Council would accept. The way I read it is it needs to be a minimum six-month lease. And I believe the wording, "consecutive," is used to clarify because there are people doing short-term or transient accommodation that will say, "I am doing long-term rental; it's just not to the same person." Unfortunately, it has come up into our office and in our appeal hearings, that they think they are long-term renting because they're renting to different people but for more than 180 days. So, I know the wording is odd, but I believe that's why "consecutive" is there to the same tenant. At the same time when you read"B" for the breach, things happen. Tenants need to be evicted because they're not paying. It's also hard if you have a tenant that's left, and you've got to renovate or remodel. Real Property Tax is hoping the intent of this by Council is that as long as the owner is going to do those changes. Because we're not going to be there counting every day that you stayed in there for 180 days. But if their intent is to continue to lease it out after they've done their fixes or their tenant up and left them, that they would continue to be in the long-term rental class. Does that answer your question? I know that concern came up from other individuals to our office. MS. EVANS: I think it's because of the word"and." It says, "real property occupied for 12 consecutive months and under a signed lease for six consecutive months or more." So, that kind of implies that real property has to be occupied for 12 consecutive months. MS. KAGIWADA: May I answer? MS. EVANS: So, Chair? MS. KAGIWADA: I have an answer. Okay, thank you. So, we originally intended it to be 12 consecutive months. But when we talked to the real estate community, they said that six-month leases are the standard in our County. So, they asked that we put this language around six-month leases. So, it could be two six-month leases to two different people. That's allowable as well. MS. EVANS: Right. I'm just having the issue because of the word"and." "And"usually implies that you have to do that. Page 23 Hawaii County Council-44 July 24,2024 MS. KAGIWADA: Yes. MS. EVANS: So, it has to be occupied for 12 consecutive months, when in fact, if someone leaves after six months, and they have to advertise on social media for two or three months, they're not going to meet 12 consecutive months. They're not going to meet it. They're not going to meet that 12 consecutive months. That's my concern, is that I mean I love the sixI agree six months or more then go on month-to-month. They can get them out. I'm just having an issue with 12 months and the word"and,"because it tells me they have to have it occupied for 12 months. And sometimes you can't find your tenant that quick. MS. MIURA: Correct. I guess I would need to confirm if the intent is so that an owner of a property who lives out of state rents it for six months and decides to be a snowbird here for three to five months. To us, that would not qualify to be part of this program. But I'm wondering if the intent of the 12 months was to differentiate that or not. And maybe that's the wording that needs to be looked at. But that is one of the questions, and I'd go to Council for that. MS. KAGIWADA: Absolutely, we talked about that, yeah. The intent is that is for a long-term rental, but we do know things happen. And I believe that maybe some of that can be dealt with in the Real Property Tax's rules and regulations around how that's worded. But the intent of the bill is that the intent of the landowner is to rent it long-term, knowing that sometimes things happen. MS. EVANS: So, I guess the question would be to Corporation Counsel on the legal wording and interpretation. It's more of the way it's written because they used the word "and." So, it just implies you have to have 12 consecutive months rented or occupied. (Note: At this time, Corporation Counsel Elizabeth Strance came forward to address the members of the Council.) MS. STRANCE: Good morning. Elizabeth Strance, Corporation Counsel. This is first reading. I think we might want to come up with some language that clarifies the intent, because the Finance Department cannot write rules that would seem to contradict the express language of a bill. And so, I think we could probably come up with something that expresses what the maker's intention is without penalizing an owner if a tenant leaves early or they need that extra time. An issue that sort of caught my attention on that, too, is if a tenant breaches a lease, they are subject to damages to the landlord. And landlords normally have an obligation to rent out property as soon as possible to mitigate their damages. But if a tenant breach were to result in a loss of tax classification, I would worry a little bit about whether there would be some unintended consequences to tenants who break their leases early. Page 24 Hawaii County Council-44 July 24,2024 But I understand what you're saying, Council Member Kagiwada, that you're not intending that they have to stay there. You're intending to provide that flexibility. And I can work with the Finance Department and our deputy assigned to Real Property Tax to come up with just to tweak that language a little bit. MS. KAGIWADA: Chair, if I may? I'm going to go back to our Real Property Tax Administrator here. But my understanding is, similar to the Affordable Rental Program, in your rules and regulations you can have exceptions. Is that correct? And exceptions can be things like when you have to renovate or when a tenant leaves unexpectedly and you're still looking for a tenant, those kinds of things. I feel like this is similar to what you're already doing with the affordable housing program. MS. MIURA: That's true. There's no rule for the affordable rentals. So, that's one that's coming up next when we have the will and energy to go back to the public. MS. KAGIWADA: Okay. So, yeah. I think we can definitely, if you want I feel like we've gone over the intent many times. But if we want to put it into the bill, we can. And yeah, I think Real Property Tax is very used to doing this already with the affordable housing program. So, that's what we were basing it on, the fact that they already deal with, when problems come up, they can deal with them. But they go by "Is this landlord trying to rent this full-time?" Thanks. CHR. KIMBALL: Thank you, Council Member Kagiwada. Before we have any further deliberation, I am going to strongly suggest that the authors do put in the Code anything related to intent based on very recent experiences. So, I would suggest you put forth a motion to postpone and work with Corp. (Corporation) Counsel and RPT (Real Property Tax)to have that language as crystal clear as possible. Vice Chair Inaba. MR. INABA: Real Property Tax, you had more to say? MS. MIURA: I did. So, while we're clarifying, some things have come up that I just want to make sure our intent is discussed here, because there's no way for us to be able to talk to Council Members to understand what your thoughts are unless we're in an open hearing like this. And I apologize, but this is the only time I can talk to all of you. Under (k)(2), where it says, "All dwelling units on long-term rental properties must be leased." Our understanding of that statement, for the record, is that if there's multiple dwellings and an owner is not living in one but saving it for their vacation rental, that they would not get the long-term rental tax class unless all of them were rented out or one was resided in by the owner. Is that correct? MS. KAGIWADA: Yes. Page 25 Hawaii County Council-44 July 24,2024 MS. MIURA: Okay. And I'd like to clarify "dwelling unit" is how Real Property Tax defines a"dwelling unit," and not Planning Department with the kitchen being a sink and a plug-in heating element. We define a kitchen by most other standards, and that would be a unit for us, whether it was in the same structure or not. So, we would be putting that into the rules just to protect the Real Property Tax Office, because I know there's confusion by owners as to whether they have a wet bar, a kitchen, a kitchenette. And No. 4, this is not eligible for anybody in the Residential Tier 2 tax class. However, if they are in an agricultural zoning and they're in any other tax class, even if the property is worth $2 million or more, they're still eligible for the long- term rental, okay. My last one here is the words "commercial or income-producing." There are some that take those words to mean any income made on the property, which includes rental activity. And when we look back at the original intent, it did not appear to be income as far as short-term or long-term rental. The incept definitely changed. So, I'm just making sure that when it is referred to commercial or income-producing, Council is looking at that from a short-term perspective, or less than 180 days. But anything long-term or agricultural use where there is income generating is not part of that. And I think that would be an important distinction going forward. How our office has looked at commercial or income is not necessarily what the other departments are looking at. It's been if there's signage up when you go somewhere; if there is cars coming and going. So, if you're advertising that you're doing a real estate office, and you've got people coming and going, that would be a commercial or income-producing, not necessarily this long-term rental. Okay, I'm seeing nobody telling me I'm completely wrong. Okay. And right now, it's an annual application and we have that duly noted. That's all I have. MR. INABA: Thank you, Administrator. With that, yes, I think just to clarify for the body, when we look at any of these terms, we are using it in the context of the definitions from Chapter 19. I'm just wondering—well, I guess I'll say I see what the intent is here, but we just went through an attempt to try and reduce property taxes for homeowners and for affordable rentals. And this body has not bought in to providing solid, substantial relief for homeowners and affordable renters. But now we're going to try and create a new class, and I'm not sure that's the right way to go when we have classes; we have an affordable rental class. I was frustrated when we took up the Real Property Tax discussion because no one provided solutions in terms of rates that balance what are expenses, but now we're creating additional structures and additional programs, which I think puts a Page 26 Hawaii County Council-44 July 24,2024 burden on the Real Property Tax Office and provides maybe even more confusion for the public. Are they going to a long-term rental or are they going to go to the affordable rental class? I'm still having a hard time with this bill, especially in light of not having been able to provide solid relief as I stated. I would like to hear a little bit more from members of our community as to the actual numbers and how it plays out. But right now, I can't support this as it's written, especially with all of the changes we've been making to our Tax Code, and when we had opportunities to provide that relief just two months ago. Thank you. CHR. KIMBALL: Thank you, Council Member Inaba. Council Member Lee Loy. MS. LEE LOY: Thank you, Chair. I'm going to echo the sentiments of my colleague. If there's an intention, words carry weight. Let's get the words on the paper. And so, I would support a postponement of this bill. Having sat here for a little bit and leaning in on the frustration of my colleague, as we try to provide relief for our local families, our local homeowners, in the affordable rental rate, there was a time where, as we tried to balance the budget while providing relief in the rental category and the homeowner category,we had to spread it somewhere. I clearly remember our former colleague Aaron Chung saying, this is what we've got to do, but I think apartments. I see Ms. Miura nodding. I think apartments is getting soaked—and I'm paraphrasing. I am in support of this bill because I always felt that the residential category is that junk drawer of whatever doesn't fit in the other categories, because there's clear bright lines of understanding for those categories, that the catchall is the residential category. So, I can continue to support this bill, but I think it still needs more work, and we're dealing with something else on another piece of legislation. But I do think these things have to happen. And unless we begin to tailor and architect the various categories, then we can start tinkering with the rates in a more meaningful and thoughtful way. So, to the makers, absolutely, I'm in support of this. If asked to vote on it, I'm going to reluctantly say, "yes,"because I think it has to happen. But we're going to run into problems when they start architecting the rules or, you know, a lot of questions around it all. To Mr. Inaba's point, it's after we pass the legislation when Real Property Tax sends out the notifications that, all of a sudden, our community starts to understand that it is impacting them. And so, I think there needs to be a lot more outreach or maybe small group discussions or just calls to action, whether it's with the Realtors Association or town halls, but also the insurance industry. Because one thing the testifier really touched upon, and I said this a million times, Page 27 Hawaii County Council-44 July 24,2024 what's keeping me up at night is those insurance rates. We haven't felt the full effect and impacts about the Lahaina fires as it relates to insurances, and however we adjust these things, insurance is going to be a very costly factor in the years to come. Those are my thoughts. Thank you, I yield. CHR. KIMBALL: Thank you, Council Member Lee Loy. Alright, checking in Hilo. MR. KANEALI`I-KLEINFELDER: Yes,please. CHR. KIMBALL: Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you. Lisa or Administrator. For Section (k), I was thinking about your question for No. 2: "All dwelling units on long-term rental properties must be leased," and then No. 3: "A long-term rental classification shall not be disallowed or ineligible by sole reason that the owner's principal residence is located on the same property." But if the owner lived on the same property, they wouldn't have a lease agreement with themselves, but we're requiring that all buildings be leased on the property. Am I reading that correctly or incorrectly? MS. MIURA: You're reading it correctly. I believe what that means is if the owner is the primary resident and has a homeowner exemption filed, then they can be leasing another property as long-term. Now, I know there was a bill yesterday, but keep in mind if that bill doesn't pass, then this language probably makes more sense. MR. KANEALI`I-KLEINFELDER: I agree, but I'm also thinking about the homeowner's exemption. Because if I was a homeowner, will I be able to qualify as a long-term rental and a homeowner exemption? MS. MIURA: So, if yesterday's bill passed, you would be the homeowner tax class. If that one doesn't pass, then right now, you would be in the residential or your underlying zoning tax class, which it is right now. MR. KANEALI`I-KLEINFELDER: It's hard to make ends line up when we have so many different components moving in the middle. Yeah, I appreciate your questions, because I think your questions were more to understand what the complexity is and how all of this ends up as a finished product. Okay, so one more time. So, someone who has a home on a property and has a second unit can or cannot be in the homeowner class? MS. MIURA: Does the owner have a homeowner's exemption application and living in there full-time as a primary resident? Page 28 Hawaii County Council-44 July 24,2024 MR. KANEALI`I-KLEINFELDER: I don't know. I mean, hypothetically, yeah, let's say that. Okay, hypothetically, yes. MS. MIURA: If it's a separate dwelling, they could qualify for this long-term, ignoring what happened yesterday on that bill. MR. KANEALI`I-KLEINFELDER: Okay. Would they have to provide a lease agreement for their property that they're in, because No. 2 requires all of the units on long-term rental properties must be leased? MS. MIURA: No, and perhaps maybe the better wording would be "or" or "unless," although I have learned that people don't typically read that part. So, if a long-term rental classification shall not be disallowed if the owners there's a lot of double negatives when it goes through, sorry, attorneys, but I think it's all dwelling units on long-term rentals must be leased unless the owner's principal residence is one of those dwellings. MR. KANEALI`I-KLEINFELDER: I agree. More like an exception to the previous statement, correct, instead of two separate items? What I'm saying is No. 2 and No. 3 need to work together to provide the allowances and be ready to accept what's happening with the ADU Code because they all sync together. But this may create a weird hiccup for property owners who live on their property and rent the unit and are in the long-term rental class or homeowner exemption class, or have the homeowner's exemption, sorry. MS. MIURA: Okay. And just in defense of the makers, I think they copied this from the affordable rental that was already there, that made it through a different set of Council Members and LRB (Legislative Research Branch) at one time. But I can understand that clarification would help. MR. KANEALI`I-KLEINFELDER: Since you touched on it and listening to Council Member Inaba, part of me thinks this should be under the affordable rental class and has the subsection similar to the way we have broken up our residentials into Tier 1, Tier 2. It parallels with affordable rentals, in my mind. So, I'm not sure where that leaves the makers, but that's just a thought. I yield, Chair. CHR. KIMBALL: Thank you, Council Member Kaneali`i-Kleinfelder. Is this a motion to postpone? MS. KAGIWADA: Yeah, I have one comment and then a motion (inaudible) CHR. KIMBALL: Okay, I do want to get there, moving further. So if you can please be brief. Page 29 Hawaii County Council-44 July 24,2024 MS. KAGIWADA: Thanks, yes. Yes, thank you, everybody. Good comments and, as mentioned, this language was taken from our Code, a lot of it based on the Affordable Rental Program. We did have a discussion about if it should be part of the Affordable Rental Program, and it, I think, seemed to be too much of a mix-up with that program right now. It seems simple to us to make a separate long-term rental program, but we can think about that some more. I did want to address my colleague's comment about, I do think that this would make it much simpler when looking for ways to help our homeowners and the Affordable Rental Program and perhaps this program have lower rates by what levers we can pull if long-term rentals are not in the same residential class with vacation properties and vacant properties. Because that is something that I think many of us are more willing to tax. But right now, if we tax residential, we really hurt people who are doing long-term rentals and that's what we're trying to avoid. So, yes, it will be much easier to consider the levers we can pull in order to give our homeowners a better deal if we could take long-term rentals out of the same pot, that junk drawer that my colleague mentioned, with some of those other categories. So, that is one of the primary drivers of doing this, is to separate that out so that we can tax things appropriately. And with that, I wouldoh, my colleague has something to add. I yield. CHR. KIMBALL: Go ahead, Council Member Galimba. MS. GALIMBA: Thanks. So yeah,just wanted to follow-up and say that I thank my colleagues for their careful reading of this. And I think we will postpone to work on some of that language to make sure that we can get it as clear as we possibly can. So, I would like to move to postpone to the August 7�' meeting. Motion to Postpone: Ms. Galimba moved to postpone Bill 104, Draft 6, to August 7, 2024. Seconded by Ms. Kagiwada. CHR. KIMBALL: Any discussion on postponement? MS. KIERKIEWICZ: Chair, on the postponement. CHR. KIMBALL: Yes, go ahead, Council Member. MS. KIERKIEWICZ: I'll be supporting this and,you know, Council Member Chung used to say some bills are not ready for prime time. We really should not have moved this to Council. There were questions that we still had in Committee that are still resurfacing today. I think the Administrator has provided a lot of really great clarification. But all of that information needs to be reflected in our Code, and there needs to be a strong community engagement and awareness plan around this. Because last week Wednesday or Thursday, our Real Property Tax Office, Finance Department, went through the gauntlet. Page 30 Hawaii County Council-44 July 24,2024 So, there has to be a lot of collaboration between the Legislative Branch and the Administration to ensure that there is a package of information that we are sharing with community. So, I'm going to be postponing it. I honestly don't think August 7h is enough time. But if folks feel confident that you can do that, great. I also really think there needs to be some rates, because our Administrator talked about a soft opening. People aren't going to want to know if they want to enroll in a program if there isn't a discussion about rates. So,please take that into consideration so that we can have a robust discussion at the next meeting. Thank you. CHR. KIMBALL: Thank you. Vice Chair Inaba, on the postponement. MR. INABA: I think two of us for sure will be absent at the next Council set perhaps, or at least myself, and I'm also wondering if August 7h is enough time. And I guess I'll just put it out there: At that point, I hope we have something that we can move forward to second and final reading. If not, then maybe we just need to scrap this and start fresh, because I agree with Council Member Kierkiewicz that we should not have moved this forward. There's a lot of things that aren't making sense still, and we're on Draft 6 at this point. Thank you. CHR. KIMBALL: Thank you, Council Member. Okay, the motion on the floor is to postpone to the August 7h Council meeting. Would you like to reconsider to September? Okay, what's the first Council meeting in September? Okay, so I would request the maker withdraw the previous motion. Withdraw Motion Ms. Galimba withdrew her motion to postpone Bill 104, to Postpone: Draft 6, to August 7, 2024. Vote on Motion to Ms. Galimba moved to postpone Bill 104, Draft 6, to Postpone: September 4, 2024. Seconded by Ms. Kagiwada and (Approved) carried by the following voice vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: At this time, I'd like to request that we go to Resolution 550-24. But before you read it in, Mr. Clerk, I'm going to pass the gavel to Vice Chair Inaba. The time is 11:27 a.m. Vice Chair, the chair is yours. Relinquish Chair: At this time, Chair Kimball relinquished the chair to Acting Chair Inaba. Page 31 Hawaii County Council-44 July 24,2024 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) Approve: FC-172 (Note: The following relating to Res. 550-24 were circulated: 1) Comm. 922.1, from Finance Director Diane Nakagawa dated July 18, 2024, transmitting proposed amendments; and 2) Comm. 922.2, from Finance Director Diane Nakagawa dated July 24, 2024, indicating that the total cost of$622,000 would be for three years.) Motion to Approve: Mr. Kaneali`i-Kleinfelder moved to adopt Res. 550-24 and Finance Committee Report No. 172. Seconded by Ms. Galimba. (Note: At this time, Deputy Corporation Counsel Dakota"Cody" Frenz and Police Lieutenant Robert Fujitake, Jr., came forward to address the members of the Council.) ACTING CHR. INABA: Joining us in Hilo Chambers I believe are Deputy Corporation Counsel Cody Frenz, assigned to the Police Department, and I cannot see MS. FRENZ: Lieutenant Robert Fujitake. ACTING CHR. INABA: Thank you. Go ahead, you folks. MS. FRENZ: Good morning, everyone. Deputy Corporation Counsel Cody Frenz on behalf of the Police Department. Also with me is Lieutenant Robert Fujitake, of Police, and I also have Battalion Chief Stacy Domingo from the Fire Department. I can answer any questions. This is an amended resolution. I can provide information and guidance on that if anyone needs it. MR. KANEALI`I-KLEINFELDER: I don't have any questions, Chair. Thank you. ACTING CHR. INABA: Thank you. I'm wanting to confirm you're saying it's an amended resolution. I don't believe I have the amended resolution. Does anyone else have it, or are we taking up an amendment? Page 32 Hawaii County Council-44 July 24,2024 MS. FRENZ: I believe it's taking up an amendment. I might be wrong in your practices in that regard. A little bit of background. I initially worked with the Fire Department when I was still assigned to the Fire Department on the B-52 for Council's permission to do a multi-year agreement with Hawaiian Telcom. ACTING CHR. INABA: Got it. We do have the amendment here. So, we will take that up at this time, if I can get a motion to amend Resolution 550-24 with the contents of Communication 922.1. Motion to Amend: Ms. Lee Loy moved to amend Res. 550-24 with the contents of Comm. 922.1. Seconded by Ms. Galimba. ACTING CHR. INABA: Deputy Corporation Counsel, would you like to walk us through this amendment? MS. FRENZ: Sure, thank you. First of all, thank you for considering the amendment. So, initially it was just for the Fire Department while I was still their attorney. The Police Department likewise has the exact same need. This is for the Call Center Dispatch that will be housing both Police and Fire Dispatch Centers. Now that I'm assigned to the Police Department, I don't believe they they had not quite started that process, but they had the exact same need for a multi-year contract with Hawaiian Telcom. So, we were fortunate enough that there was the opportunity to sort of piggyback onto the previously already submitted resolution for the Fire Department, which went through the first reading with Battalion Chief Domingo present to answer some questions. The Police Department is joining in that. As of today,just for contract purposes, there were some minor tweaks and issues with the agreements submitted to the County by Hawaiian Telcom. I worked with DPW's (Department of Public Works') attorney Sinclair Salas-Ferguson and the newly assigned Fire Department attorney Sylvia Wan to modify those agreements, primarily striking indemnification language that was problematic for the County of Hawaii. I actually sent a mass email to all of the relevant parties and their assigned attorneys with Hawaiian Telcom this morning with our proposed final documents, in hopes that they will review, approve and begin the signing process, provided that this resolution were to pass today, so we can enter into those agreements. ACTING CHR. INABA: Wonderful. Thank you for providing that overview. Is there any discussion on the amendment? Council Member Evans. Page 33 Hawaii County Council-44 July 24,2024 MS. EVANS: Yes. So, I understand the Fire Department cannot sign for the Police Department, so there has to be two agreements. What I'm curious about is the estimated cost of$200,000 a year. So, is it going to be $100,000 for each department, so for the total of$200,000, or are we agreeing to $400,000? MS. FRENZ: So, they're two completely separate agreements for the monthly recurringso, all you're reviewing today is the request for the monthly recurring. We also have a non-recurring agreement with Hawaiian Telcom that's for the equipment and its installation. Two separate documents again for both Police and Fire. So, Police has its own. I believe Police's monthly recurring is quite higher than Fire's, given the number of stations, I believe. And hopefully, I'm not using the incorrect terminology. Lieutenant Fujitake can further chime in and/or Battalion Chief Domingo. But Police have greater workstations, as I understand it. So, their need and their cost per month will be higher than Police's. But they are completely separate contracts, Council Member Evans, and they will have separate financial needs. So, I think the documents you're looking at is specific to one department. They are different amounts, though, and they are substantial when you look at the three- year period. But it is a very important critical need for the County of Hawaii. MS. EVANS: Okay,just want to make sure I know what we're agreeing to. So, I see the amendment now, saying it's going to be an estimated $422,000. But are we going to be signing the three-year agreement for that amount, or did I hear you say it's going to be month-to-month? MS. FRENZ: So,just to clarify MS. EVANS: Like a billing, for example. MS. FRENZ: Sorry. MS. EVANS: Like a billing, month to month, for use. ACTING CHR. INABA: Council Member Evans, can you please restate the question? MS. EVANS: So, the question being, are we agreeing to a contract for three years with both departments estimated at$422,000, which I see in the B-52 form? Or are we agreeing to a three-year agreement, and then we'll be billed monthly depending on what the usage is? MS. FRENZ: So, let me clarify. The $400,000 is specific to the Police Department; that's the amendment. The Fire Department, I believe, is 200-some- Page 34 Hawaii County Council-44 July 24,2024 odd-thousand dollars. The total is going to be 600-some-odd-thousand dollars for both departments for the entire three-year period. My understanding is those are set amounts based on the number of workstations each department needs for their Dispatch Center. Whether or not the County will be paying that on a monthly period versus an annual period, that's more of a Finance question. I'm not too sure how those actual payments get made. But just to clarify, Council Member Evans, the total cost, I believe it's reflected on the B-52, but I don't have that in front of me. It's just over $600,000 for both departments. So, the 400-plus-thousand is for Police; the 200-plus-thousand is for Fire. Hopefully, that clarifies that. Apologies. And I can clarify more if need be. ACTING CHR. INABA: Thank you. Council Member Evans, I think I can understand where the confusion might be here. The transmittal letter states $200,000 for Fire; $422,000 for Police, for a total of$622,000. However, the B-52 states $422,000 total. But it's our understanding, as represented by Deputy Corporation Counsel, the total is $622,000, as reflected in the transmittal letter. MS. EVANS: Okay, thank you. I just want to make sure that we know what we're signing up for. Thank you, I yield. ACTING CHR. INABA: Thank you. Any further discussion on the amendment? MR. KANEALI`I-KLEINFELDER: Chair, I have one question. ACTING CHR. INABA: Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you. Ms. Frenz, the resolution, is it—sorry, I(inaudible)what she said versus what I'm reading; $622,000 per year for both Police and Fire, correct? Or is that the total for the three years? MS. FRENZ: That is the three-year total for both departments, is my understanding. MR. KANEALI`I-KLEINFELDER: The three-year total. MS. FRENZ: Yes. MR. KANEALI`I-KLEINFELDER: Okay, because the transmittal letter says, "The cost for both agreements is anticipated to be $622,000 per year." MS. FRENZ: That is not my understanding. Page 35 Hawaii County Council-44 July 24,2024 ACTING CHR. INABA: Do we want to table this matter to make sure we have a correct amount here, because, yes, the reflection in the transmittal letter does state "per year"versus the B-52 states "total." MR. KANEALI`I-KLEINFELDER: Chair Inaba,we could table it to amend the transmittal letter. But ultimately, the resolution does not call out a dollar amount. It just says that we're entering into an agreement or agreements. So, I'm open to whatever the department wants to do. The second "WHEREAS" clause says desires to enter into multi-year agreements for three years with Hawaiian Telcom, but it doesn't say how much of a dollar amount per year we're going to be spending. So, open to the department's suggestion on how they'd like to proceed. I yield, Chair. MS. FRENZ: My preference would be that weI can table it and clarify in ten minutes if you would like. But I'd like to ensure that we keep the resolution moving forward because the Dispatch Center needs authority. Well, the departments need the authority to sign so we can keep moving it forward, because we've had, you know, repeated delays, unfortunately, for construction purposes. But it is a very important question. My understanding is that was for the entire period, but I can definitely see where the confusion is. So, if you'd like to pass it for a moment, I can clarify, if that's going to hold up your ability to give the County permission to be able to enter into these agreements once we fine tune them with Hawaiian Telcom. MR. KANEALI`I-KLEINFELDER: Chair, I'm going to make a motion to table Resolutionsorry, we're on the amendment. ACTING CHR. INABA: Yes, we are on the amendment, Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Okay, let's do this. Let's table the amendment. ACTING CHR. INABA: We would be tabling the entire matter. So, we would be tabling the resolution. MR. ARACELEY: Correct, Chair. If you table the amendment, you'll be tabling the entire MR. KANEALI`I-KLEINFELDER: Motion to table Resolution 550-24 just to finalize the documents that are in front of us, so everything that we had adds up to the same. Page 36 Hawaii County Council-44 July 24,2024 ACTING CHR. INABA: I believe Deputy Corporation Counsel has a statement, so I'm not going to recognize those motions at this time. Deputy Corporation Counsel. MS. FRENZ: Yes, apologies to everyone for the confusion. I think that one word complicated things, but thank you. Battalion Chief Domingo was able to do some quick math in the back for us in looking at the service agreement from Hawaiian Telcom, totaling it up. For example, for the Fire Department, it is the three-year period, not a one-year period, per department. So,the $200,000, the 400-some- odd thousand, for a total of just over $600,000, is for the entire three-year period for both departments according to the math just done, thankfully, by Battalion Chief Domingo. ACTING CHR. INABA: Council Member Kaneali`i-Kleinfelder, anything further? MR. KANEALI`I-KLEINFELDER: Yes, sorry. So, the transmittal letter, this sentence. This is the kicker for me, although it's not in the resolution, but it is in the transmittal letter: "The cost for both agreements is anticipated to be $622,000 per year." Is that statement correct or not correct? MS. FRENZ: Per Battalion Chief Domingo's math, it would be for all three years. MR. KANEALI`I-KLEINFELDER: For all three years. MS. FRENZ: For all three years. She did that for Fire. And they're written the same. MR. KANEALI`I-KLEINFELDER: That is inclusive of Police and Fire? MS. FRENZ: For the $620,000, that is correct. Yes, sir. MR. KANEALI`I-KLEINFELDER: So, $622,000 per year; $200,000 I'm reading word for word per year for Fire and $422,000 per year for Police. MS. FRENZ: That's correct. MR. KANEALI`I-KLEINFELDER: As long as that sentence is correct, then I'm comfortable in moving the resolution forward. If it's not correct, I'd like to correct it and then we can go from there. It's simple. MS. FRENZ: I think it's definitely simple. Director Nakagawa is waiting for verification on her end as well. But I would like to, rather than continue it, I'd Page 37 Hawaii County Council-44 July 24,2024 like to just pause, if possible, or table or whatever it needs to be for that clarification. I understand the importance of that discrepancy on what's submitted as the amendment versus the B-52. So, I understand the confusion. MR. KANEALI`I-KLEINFELDER: Okay, perfect. ACTING CHR. INABA: Go ahead and make the motion, Council Member Kaneali`i-Kleinfelder. Vote on Motion to Mr. Kaneali`i-Kleinfelder moved to table Res. 550-24. Table: Seconded by Ms. Galimba and carried by the following (Approved) voice vote: Ayes: Council Members Evans, Galimba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Lee Loy, Villegas, and Acting Chair Inaba—9. Noes: None. Absent: None. Excused: None. ACTING CHR. INABA: Motion carries. Resolution 550-24 is tabled. At this time, 11:41 (a.m.), passing the chair back to Chair Kimball. Mahalo. Relinquish Chair: At this time, Acting Chair Inaba relinquished the chair to Chair Kimball. CHR. KIMBALL: Thank you, Vice Chair Inaba. I would like to request, Mr. Clerk, that we go to Bill 176, Draft 2, at this time. Bill 176: AMENDS CHAPTER 2, ARTICLE 25 OF THE HAWAII COUNTY CODE 1983 (Draft 2) (2016 EDITION, AS AMENDED), RELATING TO APPROPRIATION OF FUNDS TO NONPROFIT ORGANIZATIONS Adds and amends existing definitions and amends provisions regulating requirements for nonprofit organizations to be eligible for County funding, conditions placed on the receipt of grant awards, and procedures for the awarding of grants. Reference: Comm. 918.5 Intr. by: Mr. Inaba Approve: GOEAC-147 (Note: The following proposed amendments to Bill 176, Draft 2, were circulated: 1) Comm. 918.6, from Council Member Matt Kaneali`i-Kleinfelder dated July 17, 2024; and 2) Comm. 918.7, from Council Member Holeka Goro Inaba dated July 23, 2024.) Page 38 Hawaii County Council-44 July 24,2024 Motion to Approve: Mr. Inaba moved to pass Bill 176, Draft 2, on first reading and adopt Governmental Operations and External Affairs Committee Report No. 147. Seconded by Ms. Lee Loy. Motion to Amend: Mr. Inaba moved to amend Bill 176, Draft 2, with the contents of Comm. 918.7. Seconded by Ms. Lee Loy. CHR. KIMBALL: Vice Chair Inaba. MR. INABA: Yes, I'll walk us through this amendment. This was mostly provided by Corporation Counsel for grants, changing public funds to County funds, making sure that's kind of distinguished there. Ineligible organizations. We cannot ensure that a governing board does not have conflicts of interest with the County, but we can ensure that the organization has a conflict-of-interest policy which complies with the requirements of the IRS (Internal Revenue Service). So that change was made. Similarly, we've added the word, "written" into policies on nepotism making sure that they have those polices in writing, and they're providing that to us anytime a grant is going to be applied for. Lastly, in that section, when there is a conflict of interest that is disclosed to the County, we obviously will take steps to prevent any employee's involvement in that, and that kind of provision falls in the Code of Ethics. It's a little difficult to predetermine who you may or may not have a conflict of interest with in the County, depending on which department a grant gets routed to. Then on page 3,just wanted to make sure that procedures for awarding grants, it's grants pursuant to this article, not necessarily all grants because there are exemptions for private, Federal, and State—grants that we pass through. The rest of them are actually just housekeeping language changes. If you go to the last page of the amendment, it speaks to the Rules of the Finance Department in carrying out this section of the Code. So, it's just making sure that those rules clarify or help to implement this article. Lastly, to make sure there is no confusion, we're saying that any application for County grants, that no more than 10 percent of the grant may be used for administrative and overhead costs. It's kind of an already existing policy. We're just changing it to be more clear with the exact language there. So, I ask for your support, and I'm happy to take any questions anyone might have. Mahalo. CHR. KIMBALL: Thank you, Vice Chair Inaba. Any comments on the amendment? Checking in Hilo. Checking here, no? Oh, Council Member Kagiwada. Page 39 Hawaii County Council-44 July 24,2024 MS. KAGIWADA: Just a quick question/clarification for the overhead and administrative costs, which I know have been in there before. But if somebody is using a fiscal sponsor for the overhead and administrative costs, is it only 10 percent, including the fiscal sponsor amount, that may be taken for that and any administrative overhead expenses for the program itself? I just want to be really clear about that. CHR. KIMBALL: Mr. Inaba, you may respond. MR. INABA: Sure. It is 10 percent for the award. So, however that 10 percent is divvied up between an organization or a fiscal sponsor, it's up to them. But it's 10 percent on the total award. MS. KAGIWADA: Thank you very much. I just wanted the public to hear that. CHR. KIMBALL: Alright, thank you. Any further discussion on the amendment? Go ahead, Council Member Kierkiewicz. MS. KIERKIEWICZ: Regarding that 10 percent, I know that we have our Finance Director here, and I'm wondering if Director Nakagawa or Vice Chair Inaba, if you can weigh in on where exactly we are getting the 10 percent for the administrative and overhead costs. And in your definition of administrative and overhead costs, does that also include grants management? Because, as my colleague Council Member Kagiwada mentioned, not all programs are run by a nonprofit. They often work with a nonprofit that acts as their fiscal sponsor. And this is an area that has come up, I think, quite often amongst all of our offices. So, just want to understand what Federal guidance or what guidance are you using to identify that 10 percent admin (administrative) cost, and does that include grants management as well. The Director is approaching. (Note: At this time, Finance Director Diane Nakagawa came forward to address the members of the Council.) MS. NAKAGAWA: Good morning, Council Members. Diane Nakagawa, Finance Department. Council Member Kierkiewicz, I appreciate your question, especially in light of some of the discussions we've had with grants in the County. The 10 percent—and, Council Member Inaba, please feel free to correct me if I'm wrong—has been kind of the standard percentage that we have used for grants and administrative costs. Some have fluctuated a little higher, but that has been the standard. Regarding the question, can you just repeat the question on the management costs or different—kind of clarify your question on what that would entail. Page 40 Hawaii County Council-44 July 24,2024 MS. KIERKIEWICZ: Can we stay on the 10 percent real quick since we're still there? MS. NAKAGAWA: Yes, of course. MS. KIERKIEWICZ: I've applied for State and Federal grants that have actually had a higher administrative cost percentage in the range of 15 to 20 percent. So, again, I'm just trying to understand how we're landing on 10, and if there is something from a national nonprofit federation association that says this is an appropriate amount. So, I want clarification on that before the next reading. Then my second question is, when you say, "administrative and overhead costs," in your mind does that also mean grants management costs, because many nonprofits serve as a fiscal sponsor. MS. NAKAGAWA: Okay. So, regarding your first question of the 10 percent, happy to gather more information on what that standard looks like. You know, I think one of the things that we look at in determining that 10 percent is the best— where estwhere the money goes to and what the purpose of the grant is for, and trying to keep those costs to the intended purpose. I do understand that in order to do some of these activities, there is that oversight in grant management costs which is why that administrative cost has been traditionally allowable up to a certain percentage. However, I think the intent is always to get it to the activity or purpose of the grant. MS. KIERKIEWICZ: Okay, that's helpful, and I'm wondering if, you know, Finance Director, Vice Chair Inaba would be open to a friendly amendment to include that language, grants management,just so that there is clarity. Oftentimes, we understand what the intent is, but folks come and go and that intent might be lost. So, I think this is something that needs to be codified if folks see that as a friendly amendment. MS. NAKAGAWA: Sure. Open to the discussion. As I've mentioned, this has come to light in other recent grant situations, and I think it's a good place to further define and provide more clarity in these types of situations. So, happy to look at that. MS. KIERKIEWICZ: So, these rules would apply to all County grants, correct? MS. NAKAGAWA: That is correct. MS. KIERKIEWICZ: What about PONC stewardship grants? MS. NAKAGAWA: Council Member Kierkiewicz, yes, that is the place that has come to recent light, and I think we need to take a look at that as well. Page 41 Hawaii County Council-44 July 24,2024 MS. KIERKIEWICZ: Okay, thank you. I yield. CHR. KIMBALL: Thank you, Council Member Kierkiewicz. Coming back to Council Member Evans then Council Member Galimba. MS. EVANS: Just a follow-up question to the Director. I don't think it's in here, but will you have to do rulemaking on this, or do you want everything put in Code? CHR. KIMBALL: It is in there, Council Member Evans. The rulemaking language is in the Section of the bill that we are looking at. It's actually part of the amendment in front of us. MS. EVANS: So, there will be rulemaking. Okay. So, it will be good to know what our intention is. But if we don't put it in Code, then it would be up to the Director to put it in rulemaking, right? Okay, thank you, I yield. CHR. KIMBALL: Thank you. Council Member Galimba. MS. GALIMBA: Thanks. Yeah, it's in relation to this administrative and overhead costs question, which was really—well,we all know kind of what happened. This is a question to the maker. Is there a place where administrative and overhead are defined, because I couldn't find it in (Section) 2-136, and I think that would be helpful. And I'm not sure if what Council Member Kierkiewicz is suggesting would be a definition or just an exclusion. But I think, unless I'm missing it, I think we need a very clear definition of administrative and overhead costs in the definitions. Thanks. CHR. KIMBALL: Thank you, Council Member. Back to you, Vice Chair Inaba, on the amendment. MR. INABA: Yes, this is existing language that the Finance Department is currently working on, some Administrative Rules on grants, and I think we should go that route when we're looking at the definition of administrative and overhead. Because if we put it here, we're locking ourselves in, and we don't have that flexibility. It's more for the Finance Department who oversees all finances for the County to help define them. And we can definitely all take part in working with them to define that. But it is not here in the Code. It hasn't been and it's not via this bill. CHR. KIMBALL: Thank you, Vice Chair. Coming back to Council Member Kagiwada. MS. KAGIWADA: Thank you. I just want us to be aware, and I know many of us are, but if we do go the rulemaking route, we have to just be really conscientious about making sure the public understands where to find the Page 42 Hawaii County Council-44 July 24,2024 information, that we get the information out to them, because there's been so much confusion around this and a lot of heartache, I think. If it's not in the Code that's where most people, you know, go to look for things if they are confused—we need to do a really concerted effort to reach out to the public around this. Thanks. CHR. KIMBALL: Okay, we're on the amendment. I don't see any further lights on. So, all those in favor of amending Bill 176, Draft 2, with the contents of Communication 918.7,please say, "aye." Any opposed? Vote on Motion to The motion to amend Bill 176, Draft 2, with the contents of Amend: Comm. 918.7 was carried by the following voice vote: (Approved) Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball–9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Bill 176, Draft 2, is further amended. Vice Chair Inaba, back to you. MR. INABA: Thank you. Just ask for your continued support, and I recognize the comments that have been made regarding overhead and admin. Then for Council Member Kierkiewicz, I would ask that we work together prior to the next reading to include—and I'm happy that you bring expertise in the area of grants and how it affects nonprofits. So, we'll work with you and Finance to make sure that we're clear with the language there. Thank you, everyone. CHR. KIMBALL: Thank you, Vice Chair Inaba. Any further comments on the main motion? Yes, Council Member Kaneali`i-Kleinfelder. Motion to Amend: Mr. Kaneali`i-Kleinfelder moved to amend Bill 176, Draft 2, with the contents of Comm. 918.6. Seconded by Ms. Evans. CHR. KIMBALL: Alright, Council Member Kaneali`i-Kleinfelder, on the amendment. If you can,just give folks a moment. We are trying to find the distribution on that. If I can just briefly for folks that don't have it in front of them, the proposal is to put language that says that the Waiwai program would have "no more than" $2.5 million rather than "at least." But I'll pass it to you, Council Member Kaneali`i-Kleinfelder. Page 43 Hawaii County Council-44 July 24,2024 MR. KANEALI`I-KLEINFELDER: Thank you very much, Chair. Yeah, simple amendment that would change the language to instead of being a sum of"at least" $2.5 million for each fiscal year for the Waiwai grant-in-aid awards, it would be "no more than" $2.5 million. I was here for the changing of this Code back in my first term. And just in thinking about the program every year and the push for sustainability of our nonprofits, versus being dependent on the County, and the recent changes being made, as well as this year not being able to encumber the full amount. Also,just putting this out there for this body, having a blank check for our nonprofits as far as any amount more than $2.5 million leads to troubled budgeting and ensuring that the right funds are in the right place. So, this hopes to amend the bill and create a backstop for the amount of funds that we will be providing to the nonprofits. I do feel that$2.5 million is a good amount to be provided to the community and recognize what the work that is being done by our nonprofits is doing. So, in no means want to deter them or take away from them, but also want to create a limit to help us budget appropriately and use taxpayer funds appropriately and within means. Look for everyone's support. Open to the conversation. Thank you. CHR. KIMBALL: Thank you, Council Member Kaneali`i-Kleinfelder. Bringing it here to Vice Chair Inaba, on the amendment. MR. INABA: Thank you. I ask my colleagues not to support this amendment. We do ensure that our funds are used responsibly. We have a process that we're continuing to improve. This section right now speaks to the Director's kuleana to appropriate no less than $2.5 million. This amendment would restrict the Director from appropriating any more. The language as it currently reads does not restrict the Council from appropriating more during the budget process if it chooses. But we don't want to restrict the Finance Director should she or he ever choose to appropriate more than $2.5 million in the original budget when presented to Council. So, I ask for you to not support this amendment. Thank you. CHR. KIMBALL: Thank you. Going to Council Member Evans then Council Member Lee Loy. MS. EVANS: Yeah, is Finance Director Nakagawa—is she still there? MS. KIERKIEWICZ: Director Nakagawa is here. She's approaching. MS. EVANS: Okay, thank you. MS. NAKAGAWA: Yes, Council Member Evans. Page 44 Hawaii County Council-44 July 24,2024 MS. EVANS: Thank you. This is a significant change, I think. It says, currently, you establish a sum of at least$2.5 million. So, you cannot go below that. But if we change this, you could go—well, at least$2 million. So, you could go above $2.5 million, currently. If we change this, you cannot go above $2.5 million. MS. NAKAGAWA: That's correct. MS. EVANS: So, when you consider the amount where you could go over $2.5 million, how do you come to that determination? MS. NAKAGAWA: I'm sorry, can you repeat your question, Council Member. MS. EVANS: This is a significant change, in my opinion. Right now, it says you will establish a sum of at least$2.5 million. What is being recommended is we put a ceiling of no more $2.5 million. So, my question is—since I've been here, it's been $2.5 million both years. But you could have gone above $2.5 million. So, how do you determine if you should stay at$2.5 million or go higher? MS. NAKAGAWA: So, I apologize. Council Member Evans, I am just looking at the amendment now and reading through it. So, the amendment changes to "no more than $2.5 million." As Council Member Inaba mentioned earlier, the way it's written today allows for the flexibility in the future to be determined should funds become available and should certain priorities be expressed. So, that just allows for a minimum threshold for the Finance Director to add into the budget the $2.5 million, but allows flexibility. As we have seen in the last fewa couple years ago in the past where that budget was increased based on the request and need of Council and the community to add more funds when funds were available and necessary. So, that does provide that flexibility. This does limit the flexibility to $2.5 million. MS. EVANS: So, if you establish the sum above $2.5 million, it would be based on input from the Council? MS. NAKAGAWA: That is how it's been in the past. MS. EVANS: Okay, thank you. I yield. CHR. KIMBALL: Thank you, Council Member Evans. I see that we have Corporation Counsel Judge Strance wanting to weigh in on this. Judge Strance. (Note: At this time, Corporation Counsel Elizabeth Strance came forward to address the members of the Council.) MS. STRANCE: Thank you. Elizabeth Strance, Corporation Counsel. Just to clarify, Council Member Evans, and just to put this to context, so this is basically Page 45 Hawaii County Council-44 July 24,2024 a requirement that money be set aside before it's budgeted. So, in November, before you solicit, you know that there's going to be whatever amount this Council agrees on. Then because it's set aside, it is in some ways a check on the executive, because that money is set aside pre-budget season. So, there's going to already be a requirement that there be a lined item in the proposed budget that would have this amount, so that when you come to budgeting, you will have confidence that there will be at least that much money set aside in the proposed budget before the Council begins consideration. So, I would say that it's a couple of purposes. One, it's a preapproval process and it's also an insurance that the money, at least a certain amount, will be in the budget. MS. EVANS: To the maker of the amendment, for those reasons, I am not going to be supporting the change. I yield. CHR. KIMBALL: Thank you, Council Member Evans. Anyone else on the amendment? Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. I'm not going to be supporting this amendment. I think it sends the wrong message to our nonprofit community that goes above and beyond to fill in the gap and do work that government cannot do. You know, I recall under the Kenoi Administration when there would be a surge in nonprofit grant applications, that often the Administration would provide a little bit of additional funding to help meet the need and the growing need of a nonprofit community. So, I want to ensure that in the event of another global pandemic or a disaster, whatever kind of need that we cannot even begin to imagine or anticipate arises, that there is flexibility to provide more funding in this program that really does work. So, I don't support capping it at$2.5 million. We have to make sure that there is a space line that's provided and provide flexibility to increase if there is a need. Thank you, Chair, I yield. CHR. KIMBALL: Thank you, Council Member Kierkiewicz. Council Member Lee Loy then Council Member Kagiwada. MS. LEE LOY: Thank you, Chair. Maybe I could just provide a little bit of legislative history, because I actually authored the bill that adjusted it from $1 million to $2.5 million. First and foremost, this particular program, when it was established at$1 million, had not been edited for ten years. And at the time I authored the amendment, we were sitting at about a $450 million, $460 million budget. So, recognizing the need in community and the fact that this area of need was not adjusted for ten years, I felt that this was an area where we could help community. Page 46 Hawaii County Council-44 July 24,2024 At the same time, we had already established the 2 percent open-space fund. And I was watching tens of millions of dollars going into that organization, when all of the nonprofits that serve each and every one of our communities was sitting at $1 million. So, the rationale at that time was what was .02 percent, not 2 percent, .02 percent of that particular budget at that time, is how I landed on $2.5 million. And to my colleague's point, I was hopeful that, as the budget grew, that future administrations could see this as just the floor and increase it, seeing the need in community. It's very clear that this caps that program. And I think it's sad, actually, that when we have so much good things going on in community, that we are now going to handcuff all of that good work. Thank you for letting me share. I hope you guys can carry this message as you guys move forward. And if there is a need as we watch the budget, we're at eight and some change right now, that there might be a time where we need to improve it. But use some rationale because there's good times and there's bad times. I'm in opposition of this amendment. Thank you, Chair, I yield. CHR. KIMBALL: Thank you, Council Member Lee Loy. Council Member Kagiwada. MS. KAGIWADA. Thank you, Chair. I won't be supporting this amendment, and I do want to address the statement that was made saying that we didn't use the $2.5 million this year. That was not because there's not a need. There is very much a need. That is because we are in a transition mode, and some of those issues that we just discussed around the amendment about overhead and what that entails was confusing to some people. There were other issues that were confusing to people. We are in a growth-and-alignment mode, and I think we're getting to a really good place. But it meant that, this year, there were some people that were very deserving who did not get funded through the Waiwai grant program. And once again, I'll just underline it, it was not because there wasn't a need. There is very much a need. So, I won't be supporting this amendment. Thank you. CHR. KIMBALL: Alright. Thank you. I'm going to proceed with the vote on the amendment. Mr. Clerk, we'll have to do a roll call on this one,please. MR. KANEALI`I-KLEINFELDER: Chair, I'm just going to go ahead and withdraw the amendment. CHR. KIMBALL: Well, that's even more appreciated. Thank you, Council Member Kaneali`i-Kleinfelder. Page 47 Hawaii County Council-44 July 24,2024 MR. KANEALI`I-KLEINFELDER: Thank you. Withdraw Motion Mr. Kaneali`i-Kleinfelder withdrew his motion to amend to Amend: Bill 176, Draft 2, with the contents of Comm. 918.6. CHR. KIMBALL: Alright, moving back again to the main motion, Bill 176, Draft 2, as further amended. Any further discussion on that? Mr. Clerk, let's go ahead and just do the vote. All those in favor,please say, "aye." Vote on Bill 176: The motion to pass Bill 176, Draft 2, as amended to Draft 3 Draft 3, on first reading and adopt Governmental (Approved) Operations and External Affairs Committee Report No. 147 was carried by the following voice vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Bill 176, Draft 2, as further amended, is approved at first reading. Return to Order The Chair directed the Council to return to the order of business. of Business: Res. 547-24: APPROVES THE COUNTY OF HAWAII DEPARTMENT OF PARKS AND RECREATION 2024 TITLE VI PLAN PURSUANT TO THE FEDERAL TRANSIT ADMINISTRATION TITLE VI CIRCULAR 4702.1B REQUIREMENTS AND GUIDELINES Adoption of the plan fulfills federal requirements to ensure that the department provides public transit service in conformance with Title VI legislation, which prohibits discrimination on the basis of race, color, or national origin. Reference: Comm. 916 Intr. by: Ms. Kagiwada(B/R) Approve: PCHSW-13 Motion to Approve: Ms. Kagiwada moved to adopt Res. 547-24 and Policy Committee on Health, Safety, and Well-Being Committee Report No. 13. Seconded by Mr. Inaba. CHR. KIMBALL: Council Member Kagiwada. Page 48 Hawaii County Council-44 July 24,2024 MS. KAGIWADA: We had a good presentation on this in our Committee meeting, and I hope everybody can support. Thanks. CHR. KIMBALL: Thank you. Any further deliberation? Seeing none, all those in favor please say "aye." Vote on Res. 547-24: The motion to adopt Res. 547-24 and Policy Committee on (Adopted) Health, Safety, and Well-Being Committee Report No. 13 was carried by the following voice vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Resolution 547-24 is adopted. Next item, please. Res. 548-24: REQUESTS THE OFFICE OF THE COUNTY AUDITOR TO CONDUCT A (Draft 2) PERFORMANCE AUDIT OF THE DEPARTMENT OF LIQUOR CONTROL TO ENSURE THE EFFICIENT ALLOCATION AND UTILIZATION OF FUNDS IN COMPLIANCE WITH SECTION 281-17.5, HAWAII REVISED STATUTES Areas of emphasis include the allocation and utilization of funds for travel for the department, Liquor Commission, and Liquor Control Adjudication Board and compliance with statutory requirements for the expenditure of funds received from licensing fees. The department would submit a progress report to the Council within 180 days of receipt of the audit report. Reference: Comm. 919.2 Intr. by: Mr. Inaba Approve: GOEAC-144 Motion to Approve: Mr. Inaba moved to adopt Res. 548-24, Draft 2, and Governmental Operations and External Affairs Committee Report No. 144. Seconded by Ms. Lee Loy. CHR. KIMBALL: Mr. Inaba. MR. INABA: Just a quick statement. I was contacted by a member of one of the boards and commissions under this department with some concerns regarding this resolution. And again, it's just to ensure that our method of collecting licensing fees is in line with the Hawaii Revised Statutes and that we are not overcharging any of our licensees, and making sure that any of our funds that are collected are being used to the highest and best way possible for our community and for our businesses. So I ask for your support in this matter. Mahalo. Page 49 Hawaii County Council-44 July 24,2024 CHR. KIMBALL: Thank you, Vice Chair Inaba. Any further discussion on this item? Seeing none, all those in favor of adopting Resolution 548-24, Draft 2, please say "aye." Vote on Res. 548-24: The motion to adopt Res. 548-24, Draft 2, and Draft 2 Governmental Operations and External Affairs Committee (Adopted) Report No. 144 was carried by the following voice vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Do we have both folks still in Hilo, Council Member Kierkiewicz and Kaneali`i-Kleinfelder? We've lost camera on you. Okay, we are going to take a brief recess here. It appears we have lost connection to the Hilo chambers. We are in recess. The time is 12:14. Thank you. Recess: At 12:14 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 12:20 p.m. CHR. KIMBALL: We had lost connection with the Hilo Chambers. We lost communication at the point of the meeting where we were about to take the vote on Resolution 547-24. So, no official business was conducted after the loss of connection between the chambers. So, at this time we are back to the motion on the floor being passage of Resolution 547-24. All those in favor, please say Ic aye. Vote on Res. 547-24: The motion to adopt Res. 547-24 and Policy Committee on (Adopted) Health, Safety, and Well-Being Committee Report No. 13 was carried by the following voice vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Resolution 547-24 is adopted. If we can now move to Resolution 548-24, Draft 2. Page 50 Hawaii County Council-44 July 24,2024 Res. 548-24: REQUESTS THE OFFICE OF THE COUNTY AUDITOR TO CONDUCT A (Draft 2) PERFORMANCE AUDIT OF THE DEPARTMENT OF LIQUOR CONTROL TO ENSURE THE EFFICIENT ALLOCATION AND UTILIZATION OF FUNDS IN COMPLIANCE WITH SECTION 281-17.5, HAWAII REVISED STATUTES Areas of emphasis include the allocation and utilization of funds for travel for the department, Liquor Commission, and Liquor Control Adjudication Board and compliance with statutory requirements for the expenditure of funds received from licensing fees. The department would submit a progress report to the Council within 180 days of receipt of the audit report. Reference: Comm. 919.2 Intr. by: Mr. Inaba Approve: GOEAC-144 Motion to Approve: Mr. Inaba moved to adopt Res. 548-24, Draft 2, and Governmental Operations and External Affairs Committee Report No. 144. Seconded by Ms. Lee Loy. CHR. KIMBALL: Vice Chair Inaba. MR. INABA: Thank you. Ask for your continued support. Again, the intention of this resolution is to ensure that our licensing fees are in accordance with the Hawaii Revised Statutes, that those fees are directly related and proportionate to the expenses required to carry out the duties and functions of the Commission, the Adjudication Board, and the Liquor Department. And ultimately, to ensure that our community remains safe as it relates to liquor and education in the community. Mahalo. CHR. KIMBALL: Thank you, Vice Chair Inaba. Any further discussion? Seeing none, all those in favor of adopting Resolution 548-24, Draft 2, please say "aye." Any opposed? Vote on Res. 548-24: The motion to adopt Res. 548-24, Draft 2, and Draft 2 Governmental Operations and External Affairs Committee (Adopted) Report No. 144 was carried by the following voice vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Resolution 548-24, Draft 2, is adopted. Next item please. Page 51 Hawaii County Council-44 July 24,2024 Res. 549-24: AUTHORIZES THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE DEPARTMENT OF THE ARMY, PURSUANT TO HAWAII REVISED STATUTES SECTION 46-7, REGARDING AN AQUATIC ECOSYSTEM RESTORATION STUDY OF KAHALU'U BAY Allows for a 50 percent cost sharing agreement to conduct a study to identify and evaluate alternatives and recommend a solution for aquatic ecosystem restoration of Kahalu`u Bay. Reference: Comm. 921 Intr. by: Ms. Evans (B/R) Approve: GOEAC-145 Motion to Approve: Mr. Inaba moved to adopt Res. 549-24 and Governmental Operations and External Affairs Committee Report No. 145. Seconded by Ms. Galimba. CHR. KIMBALL: Any discussion on this item? Council Member Evans. MS. EVANS: Yes, very supportive of the work that's being done at Kahalu`u Bay. So, the department that's going to enter into that, is that going to be R&D? I'm curious. And the reason I say that is I want to applaud the work of the Kohala Center and what they've been doing at the Bay, and curious who's going to lead this effort. CHR. KIMBALL: Sure, if we have anyone there that can respond to that from the Administration? MS. KIERKIEWICZ: There is no one presently in Hilo Chambers. CHR. KIMBALL: Okay, thank you. We did hear about this in Committee. I think you can refer to the Committee report. MS. EVANS: Okay. So again, much thanks to the community and the effort of the Kohala Center as well as this will be—looks like Parks and Recreation will be engaged with this. So, thanks everyone for this effort, very important. I yield. CHR. KIMBALL: Thank you, Council Member Evans. Any further discussion? Seeing none, all those in favor,please say "aye." Page 52 Hawaii County Council-44 July 24,2024 Vote on Res. 549-24: The motion to adopt Res. 549-24 and Governmental (Adopted) Operations and External Affairs Committee Report No. 145 was carried by the following voice vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Resolution 549-24 is adopted. Next item, please. Res. 551-24: AUTHORIZES THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE U.S. DEPARTMENT OF JUSTICE, OFFICE OF JUSTICE PROGRAMS, PURSUANT TO HAWAII REVISED STATUTES SECTION 46-7, FOR A GRANT TO THE HAWAII 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. Kaneali`i-Kleinfelder(B/R) Approve: FC-173 Vote on Res. 551-24: Mr. Kaneali`i-Kleinfelder moved to adopt Res. 551-24 and (Adopted) Finance Committee Report No. 173. Seconded by Mr. Inaba and carried by the following voice vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Resolution 551-24 is adopted. Can we just pop down to Bill 177, which is the companion measure for this item for first reading? Page 53 Hawaii County Council-44 July 24,2024 Bill 177: AMENDS ORDINANCE NO. 24-32, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII 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. Kaneali`i-Kleinfelder(B/R) Approve: FC-175 Vote on Bill 177: Mr. Kaneali`i-Kleinfelder moved to pass Bill 177 on first (Approved) reading and adopt Finance Committee Report No. 175. Seconded by Mr. Inaba and carried by the following voice vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Bill 177 is approved at first reading. Okay. We can return back up to Resolution 552-24, please. 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 HAWAII 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. Kaneali`i-Kleinfelder(B/R) Approve: FC-174 Page 54 Hawaii County Council-44 July 24,2024 Vote on Res. 552-24: Mr. Kaneali`i-Kleinfelder moved to adopt Res. 552-24 and (Adopted) Finance Committee Report No. 174. Seconded by Mr. Inaba and carried by the following voice vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Resolution 552-24 is adopted. Resolution 557-24, please. Res. 557-24: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO THE HAWAIIAN CANOE RACING ASSOCIATION FOR ITS ZERO WASTE INITIATIVES AT THE 2024 INTERNATIONAL VA`A FEDERATION WORLD SPRINT CHAMPIONSHIP Transfers $4,000 from the Clerk-Council Services —Contingency Relief account (Council District 1); and credits to the Department of Parks and Recreation, Administration Other Current Expenses account. Reference: Comm. 932 Intr. by: Ms. Kimball Motion to Approve: Ms. Kagiwada moved to adopt Res. 557-24. Seconded by Mr. Inaba. CHR. KIMBALL: I'll let my colleague Council Member Kagiwada talk about this a little bit more on the next item, but I just wanted to sayI'm going to call myself a former paddler now because it's been like a year. I don't think I can call myself an active paddler. Plus, a tree fell on my canoe. You'll hear more about that shortly. But with no further ado, I'm really stoked to support the World Sprints in Hilo and making sure that this a Zero-Waste event. I'm very excited that we have the honor of hosting. This is really the best place in the world for a canoe regatta. So, I'm grateful that it's back here on our shores. With that, I ask for everybody's support. Any further discussion? Seeing none, all those in favor, please say "aye." Any opposed. Page 55 Hawaii County Council-44 July 24,2024 Vote on Res. 557-24: The motion to adopt Res. 557-24 was carried by the (Adopted) following voice vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Resolution 557-24 is adopted. Next item, please. Res. 558-24: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO THE HAWAIIAN CANOE RACING ASSOCIATION FOR ZERO WASTE SERVICES AT THE INTERNATIONAL VA`A FEDERATION WORLD SPRINT CHAMPIONSHIP Transfers $8,500 from the Clerk-Council Services —Contingency Relief account (Council District 2); and credits to the Department of Parks and Recreation, Administration Other Current Expenses account. Reference: Comm. 933 Intr. by: Ms. Kagiwada (Note: Comm. 933.1, from Council Member Jenn Kagiwada dated July 24, 2024, transmitting proposed amendments to Res. 558-24, was circulated.) Motion to Approve: Ms. Kagiwada moved to adopt Res. 558-24. Seconded by Ms. Lee Loy. CHR. KIMBALL: Council Member Kagiwada. MS. KAGIWADA: Thanks so much. Yeah, this is very exciting. It seems like a lot of money. It is a lot of money, but it is a 10-day event, a minimal of 10 days. It might be 11 or 12 if they have weather and have to extend. A lot of people, as you heard the testifier say, almost 3,000 athletes along with spectators that might be up to 5,000. So, very excited to try to help make this a Zero-Waste event. And thankful for Corporation Counsel to helping me with an amendment of mine that just calls attention to the fact that many of us might not have in our mind already what Zero-Waste services are. So, we put some details in here just to help with that. Motion to Amend: Ms. Kagiwada moved to amend Res. 558-24 with the contents of Comm. 933.1. Seconded by Ms. Lee Loy. Page 56 Hawaii County Council-44 July 24,2024 CHR. KIMBALL: On the amendment. MS. KAGIWADA: Yes, on the amendment. This is where we're kind of helping to have a general understanding by all that Zero-Waste services include the treatment, segregation, collection, removal, transportation, recycling, and/or disposable waste that was generated by the IVF (International Va`a Federation) World Sprint Championships in this case. So, want to add that to make sure that's very clear. Looking for everybody's support. CHR. KIMBALL: Thank you, Council Member Kagiwada. Any further discussion on the amendment? MS. KIERKIEWICZ: Chair, on the amendment. CHR. KIMBALL: Yes. MS. KIERKIEWICZ: Thank you. I will be supporting it. It provides much needed clarification. But a larger wondering I have is, how members are able to introduce resolutions without providing these specificities, and I don't know if there's a response that can be provided today. But our office goes through the process of reviewing budgets, and you know, public purpose with Corporation Counsel before we even start the legislative review process. So, I think there needs to be a lot of work by our respective Council offices to figure out a clear process, because I feel all of this stuff needs to be handled before the resolution is introduced. CHR. KIMBALL: Thank you, Council Member Kierkiewicz. And I appreciate you bringing the opportunity to the forefront again to mention our new member in our Council Chair staff, Jessica Valdez, who will be helping to streamline and sort of proof all CRFs (Contingency Relief Funds) as we build her capacity up to ensure that sort of pre-advanced review of all of these documents, in addition to the work that LRB does. With that, any further discussion on the amendment? Council Member Kagiwada. MS. KAGIWADA: Yes. Just wanted to say that as I stated before, this is a service that the World Sprints is contracting out for. And other services that they contract out for wouldn't necessarily need this specificity because we know what is usually entailed in that. And because this is a newer service, it was pointed out, after this was developed, that we should have some additional information here that we wouldn't normally have for all other types of service, like security service or audio-visual service or something like that, because we all have a general understanding of what that is already. It would just be listed as security service or audio-visual service. In this case, it was just brought to our attention that, although I clearly understood and other people working on this understood what Zero-Waste services were, that not everybody might not understand what that entails. So, that was added. Page 57 Hawaii County Council-44 July 24,2024 So, to my colleague's very pointed comment, I'm just letting you know that we did plenty of work on this, and we are just trying to add additional information that came to our attention. Thank you. CHR. KIMBALL: Thank you, Council Member Kagiwada. Alright moving forward, all those in favor of amending Resolution 558-24 with the contents of Communication 933.1,please say "aye." Vote on Motion to The motion to amend Res. 558-24 with the contents of Amend: Comm. 933.1 was carried by the following voice vote: (Approved) Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Resolution 558-24 is amended. Vote on Motion to Mr. Inaba moved to suspend Council Rule 23 to waive the Suspend Council holdover for the substantive amendment of Res. 558-24. Rules: Seconded by Ms. Lee Loy and carried by the following (Approved) voice vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Rule 23 is suspended. We are back to the main motion. Any further discussion? Council Member Kagiwada. MS. KAGIWADA: Sorry,just one comment. Just to let you know, we are looking for any volunteers who might want to help. It's going to be a big lift to make sure we really do a good job on this. And as pointed out earlier, it's the first time that ever anything like this has been done with a ten-day event on Zero-Waste. So, if anybody knows folks that want to volunteer, we can connect them with the Hawai i Canoe Racing Association. Thank you so much. Bye. CHR. KIMBALL: Thank you, Council Member Kagiwada. Any further discussion? Seeing none, all those in favor of adopting Resolution 558-24, as amended, please say "aye." Page 58 Hawaii County Council-44 July 24,2024 Vote on Res. 558-24: The motion to adopt Res. 558-24, as amended to Draft 2, Draft 2 was carried by the following voice vote: (Adopted) Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball–9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Resolution 558-24, as amended, is adopted. Next item, please. Res. 560-24: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO HAMAKUA HEALTH CENTER, INC., FOR THE PA`AUILO `OHANA FUN DAY Transfers $3,250 from the Clerk-Council Services –Contingency Relief account (Council District 1); and credits to the Department of Parks and Recreation, Administration Other Current Expenses account. Reference: Comm. 937 Intr. by: Ms. Kimball Motion to Approve: Ms. Lee Loy moved to adopt Res. 560-24. Seconded by Mr. Inaba. CHR. KIMBALL: If I may, this is an event—it's actually the first event in Pa`auilo after the gym has been redone. So, it's kind of the first time for a long time for the community getting together, actually even before COVID (coronavirus disease). So, I want to mahalo the Parks & Rec. (Recreation) staff for helping to make this happen and ask for my colleagues' support. Any further discussion? Seeing none, all those in favor please say, "aye." Vote on Res. 560-24: The motion to adopt Res. 560-24 was carried by the (Adopted) following voice vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball–9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Resolution 560-24 is adopted. We'll go down to Bill 175 for first reading. Page 59 Hawaii County Council-44 July 24,2024 BILLS FOR The Chair directed the Council to proceed to the next order of business, Bills for ORDINANCES Ordinances (First Reading). (FIRST READING): (Note: Items in this category were taken up previously, out of order.) Bill 175: AMENDS CHAPTER 15, ARTICLE 9, SECTION 15-72 OF THE HAWAII COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO THE PARKS AND RECREATIONAL FARMERS MARKET FACILITY SCHEDULE Increases the potential establishment of farmers markets by adding three park facilities to the Hilo/Hamakua region, one park facility to the Ka`u region, one park facility to the Kohala region, and two park facilities to the Kona region, and updates the park facility name in the Puna region to "William Billy' Kenoi District Park." Reference: Comm. 917 Intr. by: Ms. Kagiwada(B/R) Approve: PCHSW-14 (Note: The following proposed amendments to Bill 175 were circulated: 1) Comm. 917.1, from Council Member Matt Kaneali`i-Kleinfelder dated July 16, 2024; and 2) Comm. 917.2 from Council Member Ashley L. Kierkiewicz dated July 22, 2024.) Motion to Approve: Ms. Lee Loy moved to pass Bill 175 on first reading and adopt Policy Committee on Health, Safety, and Well-Being Committee Report No. 14. Seconded by Ms. Kagiwada. CHR. KIMBALL: We do have two amendments on this. So, before we get into discussion on the main motion, I'm going to suggest we go with those amendments, the first being provided in a communication by Council Member Kaneali`i-Kleinfelder. Motion to Amend: Mr. Kaneali`i-Kleinfelder moved to amend Bill 175 with the contents of Comm. 917.1. Seconded by Ms. Lee Loy. CHR. KIMBALL: Council Member Kaneali`i-Kleinfelder. MR. KANEALII-KLEINFELDER: Yes, I appreciate the opportunity to do this. We recently lost a farmers market in Kea`au Town, and that was much to the chagrin of our community, and we've been trying to find them a home. And after reviewing the list, I realized that there are no park facilities currently on the list in the Kea`au-Mountain View area. So, as such, looking for my colleagues' support on the amendment to add the Kea`au Community Center. Page 60 Hawaii County Council-44 July 24,2024 I did speak to the Director about this as well to make sure that met with their approval, and it was. So, looking for everyone's support and mahalo for the opportunity. Thank you. CHR. KIMBALL: Thank you, Council Member. Anyone else on the amendment? MS. KIERKIEWICZ: Chair, on the amendment. CHR. KIMBALL: Go ahead. MS. KIERKIEWICZ: Thank you. I'm in strong support of this particular addition. After those farmers were displaced through various areas throughout Puna, we know that they have seen a decrease in their business. So, this would allow for folks that are frequenting the Kea`au area to go back and visit their beloved farmers. My partner actually works at the Kea`au Fire Station, and so, he's missing his favorite avocados from one of the aunties that sell. So, little bit selfish. Got to make the disclosure. But you're really ensuring that our farmers are able to take advantage of all of our County facilities, so supporting this. Thank you, I yield. CHR. KIMBALL: Thank you, Council Member Kierkiewicz. Anyone else on the amendment? Seeing none, all those in favor,please say "aye." Any opposed? Vote on Motion to The motion to amend Bill 175 with the contents of Amend: Comm. 917.1 was carried by the following voice vote: (Approved) Ayes: Council Members Evans, Galimba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—8. Noes: None. Absent: Council Member Inaba— 1. Excused: None. CHR. KIMBALL: Bill 175 is amended with the contents of Communication 917.1. We'll move on to the next amendment by Council Member Kierkiewicz, please. Motion to Amend: Ms. Kierkiewicz moved to amend Bill 175 with the contents of Comm. 917.2. Seconded by Ms. Lee Loy. CHR. KIMBALL: Council Member Kierkiewicz, on the amendment. MS. KIERKIEWICZ: Thank you, Chair. After speaking with residents of this particular community and stewards of this `aina, we, as you know, did a renaming of this particular beach park. And stewards are very much open to the idea of Page 61 Hawaii County Council-44 July 24,2024 being able to host, you know, future makeke here at Waiakahi`ula. So, wanted to make sure that this was added to the list, and we did get the blessing of Parks Director "Mo" Messina. So, looking for everyone's support. Thank you. CHR. KIMBALL: Thank you, Council Member Kierkiewicz. Any further discussion on the amendment. Yes, Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: In strong support of the resolution. Well done. Thank you. CHR. KIMBALL: Thank you. We know you meant amendment. MR. KANEALI`I-KLEINFELDER: To the amendment, I'm sorry. CHR. KIMBALL: There's not even a resolution in this mix at all. It's only a little bit after noon. Anyway, okay, going ahead. Any further discussion on the amendment? Seeing none, all those in favor,please say "aye." Any opposed? Vote on Motion to The motion to amend Bill 175 with the contents of Amend: Comm. 917.2 was carried by the following voice vote: (Approved) Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Bill 175 is further amended with the contents of Communication 917.2. So, we're back to the main motion. Any further discussion on the main motion, as amended? Alright, seeing none, all those in favor,please say "aye." Any opposed? Vote on Bill 175: The motion to pass Bill 175, as amended to Draft 2, on first Draft 2 reading and adopt Policy Committee on Health, Safety, and (Approved) Well-Being Committee Report No. 14 was carried by the following voice vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. Page 62 Hawaii County Council-44 July 24,2024 CHR. KIMBALL: Bill 175, as amended, is approved at first reading. That will take us down to Bill 178. ORDER OF The Chair directed the Council to proceed to the next order of business, Order of THE DAY the Day (Second or Final Reading). (SECOND OR FINAL READING): (Note: Items in this category were taken up previously, out of order.) Bill 178: AMENDS ORDINANCE NO. 24-32, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2025 Appropriates revenues in the Federal Grants —Workforce Innovation and Opportunity Act account($1,697,603); and appropriates the same to the following 2023-24 Workforce Innovation and Opportunity Act accounts: Administration Planning ($169,760), Adult Program ($698,272), Dislocated Worker Program ($254,277), and Youth Program ($575,294). Funds would be used to assist adults, dislocated workers, and youth by providing training to increase employment, retention, earnings, skills, and literacy. Reference: Comm. 926 Intr. by: Mr. Kaneali`i-Kleinfelder(B/R) First Reading: July 10, 2024 Motion to Approve: Mr. Kaneali`i-Kleinfelder moved to pass Bill 178 on second and final reading. Seconded by Ms. Lee Loy. CHR. KIMBALL: We have Director Adams here on Zoom if there are any questions. Any discussion? Yes, Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you. I just want to take a moment to thank Clinton Mercado for following up with our office and providing information related to the Workforce Development's current makeup, how folks are nominated, and a copy of their bylaws. He's also extended an invitation to a future meeting when that's set. But I just really appreciate R&D's willingness to collaborate on better supporting this really important resource. Thank you, Chair. CHR. KIMBALL: Thank you, Council Member Kierkiewicz. Anyone else? Seeing none, all those in favor,please say "aye." Any opposed? Page 63 Hawaii County Council-44 July 24,2024 Vote on Bill 178: The motion to pass Bill 178 on second and final reading (Adopted) was carried by the following voice vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Bill 178 passes at second and final reading. Thank you for hanging on there, Director. Have a good day, and there's no need for waiver of a hold. This was a unanimous decision. So, it'll go right into processing. I know you're anxious to get it through. Alright, moving now back to items on the table. Can I get a motion to remove Resolution 550-24 from the table? Vote on Motion to Mr. Inaba moved to remove Res. 550-24 from the table. Remove from Table: Seconded by Ms. Lee Loy and carried by the following (Approved) voice vote: Ayes: Council Members Evans, Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Villegas, and Chair Kimball—9. Noes: None. Absent: None. Excused: None. CHR. KIMBALL: Okay we are back into the discussion. It looks like we have Deputy Corp. Counsel Frenz and our Director of Finance in Hilo. How do you want to proceed? We are on the amendment. So,we need to be advised how you would like to proceed at this time. (Note: At this time, Deputy Corporation Counsel Dakota"Cody" Frenz came forward to address the members of the Council.) MS. FRENZ: Good afternoon, everyone. This is Deputy Corporation Counsel Cody Frenz again. First, I'd like to apologize for all of the confusion on this matter this morning. I did, however, verify, and I actually spoke to the contact from Hawaiian Telcom to be double sure. And it is, in fact, the totals for a three- year period, inclusive of both departments. It is what it is at this point, but I think the error started earlier on on a transmittal to the Finance Department. This is not the Finance Department's fault. But I believe that's where the initial error occurred, on that transmittal, and I think it just sort of snowballed with confusion thereafter. So, I do apologize that that occurred. Page 64 Hawaii County Council-44 July 24,2024 I have, in fact, personally verified the numbers again with Hawaiian Telcom. So, the smidge over $600,000 covers two three-year contracts for both Police and Fire with Hawaiian Telcom. So, I'm hoping that we can proceed with the amendment which adds the Police Department to the resolution to get permission to sign a multi-year contract with Hawaiian Telcom. CHR. KIMBALL: Okay, I don't know if you've had an opportunity to talk with our Clerk or LRB, but what we're being advised is that if the transmittal letter and the amendment—I'm going to let the Clerk make the suggestion on how to proceed correctly. MR. ARACELEY: Thank you so much, Chair. So fun to have these kinds of exercises when our actual Clerk is unable to answer at this time. But from what we've seen and what we've had discussions with the Finance Department, is that they're in the process of submitting a communication. Diane, if you could just clarify or verify that's actually occurring. But just to confirm that what Deputy Corporation Counsel Cody Frenz just stated, and that would just correct the portion of that transmittal and the communication. So, the actual amendment can still be moved forward if the Council could just verify the fact that that information that Deputy Corporation Counsel just stated is in fact correct. But I do believe we'll have to wait to see that communication come through. Director, if you could confirm that it isif I am saying the right thing there. (Note: At this time, Finance Director Diane Nakagawa came forward to address the members of the Council.) MS. NAKAGAWA: Absolutely. Diane Nakagawa, Finance Department. Also, I want to apologize for the confusion and errors in our communication. Definitely not the intention to cause confusion. The intention was for efficiency and clarity, ironically. So, we did submit an amended communication that corrects the per year to a total cost, as Deputy Corporation Counsel Frenz indicated, that the total amount is $622,000 for three years for both departments, and that was transmitted. MR. ARACELEY: Chair, my understanding is that transmission should be numbered as Communication 922.2, but at this time it seems that we do not have it. So, it would be okay with the Council just for us to take a quick breather just so that we can check with our staff to make sure that that is the case, so that the Council can move forward with that clarification. CHR. KIMBALL: Okay, so I would suggest that before we take that break, that the motion to amend with this previous communication, which is in error, be withdrawn. Page 65 Hawaii County Council-44 July 24,2024 MR. ARACELEY: Sorry, let me clarify. We can move forward with this current motion to amend with this communication. We just have to wait for that communication just so that the Council can verify the communication language, and then continue on stating we're moving forward with the amendment citing the fact that(Communication) 922.2 corrects the transmittal language, not the actual amendment. Because, the amendment is correct,just not the transmittal language. CHR. KIMBALL: Understood. Not very clean, but it is what it is. Alright, so this is in progress as far as we know, Deputy Frenz and Director? MS. NAKAGAWA: It has been submitted. CHR. KIMBALL: Okay, great. So, we will just break here for—let's break for five minutes, and hopefully, we'll have it by that time. Let's reconvene at one o'clock. MS. EVANS: Chair, can we have discussion on this before you recess? CHR. KIMBALL: I'd rather not. Let's have everything that's accurate and correct in front of us before we proceed with the discussion. So, we will break until one (o'clock). Hopefully, we'll have the document in front of us, and then we can have that further discussion. Alright, we're in recess. It's 12:52 (p.m.) Recess: At 12:52 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 1:10 p.m. CHR. KIMBALL: I am calling this meeting back in session. The matter before us right now is Resolution 550-24. We are on the amendment that is contained in Communication 922.1, making note that the department has submitted a correction in Communication 922.2, which will now be included as part of the record. We are on deliberations of the amendment with the communication corrected as indicated in Communication 922.2. So, is there any further discussion on the amendment? Vice Chair Inaba. MR. INABA: Thank you. Just for reconfirmation, Deputy Corporation Counsel Frenz, the total is $622,000 for the three-year period, correct? MS. FRENZ: Good afternoon again. Deputy Corporation Counsel Cody Frenz. So, Council Member Inaba, that would be correct; for the three-year period for both Police and Fire. MR. INABA: Perfect. Thank you so much. Will be supporting. CHR. KIMBALL: Thank you. Any further discussion on the amendment? Go ahead, Council Member Kierkiewicz. Page 66 Hawaii County Council-44 July 24,2024 MS. KIERKIEWICZ: Thank you. The amendment talks about multi-year agreements. So, I just want to confirm that there will be separate agreements between Hawaiian Telcom and each of the respective departments. MS. FRENZ: That is correct. I submitted those to Hawaiian Telcom this morning for their review. In fact, in working on this, I was able to speak with Hawaiian Telcom's representative, and they're asking for a few minor corrections. So, we're very close to fine-tuning those separate agreements with Hawaiian Telcom for both Police and Fire. MS. KIERKIEWICZ: Okay, so this amendment to the resolution would authorize agreements for each of the separate departments. I just want to make sure that's clear. MS. FRENZ: That is accurate. Correct. MS. KIERKIEWICZ: Okay. And then, Director Nakagawa, will the new financial management system catch errors like this? There's discrepancies between transmittal letters, what's in the B-52. And I bring this up because $600,000 a year is very different from $600,000 for a three-year contract, right; $600,000 or $1.8 million. So, when we are making our decisions, I just want to make sure that we know how much these agreements are going to cost us, and I wonder what sort of measures we can employ now in the interim before you implement this new financial management system to catch errors. Everyone's really busy. We're all human. And so again, I just want to see—is there something that we can employ now in the future that would help us to catch these errors? MS. NAKAGAWA: Council Member Kierkiewicz, in this particular case, the system would probably not catch it. It was entered as "per year"by the department in error. So, nothing would flag it, potentially. So, it was what was entered. It was the information that the department put in. So, as I mentioned earlier, this was an error. It is definitely not something we strive for. This is something that we will talk about to ensure that these types of mistakes do not happen in the future, and we are more cautious in our communication with the departments and review process on these types of communications and the accuracy of the numbers, as well as the word choices in them, such as "per year." So unfortunately, for this case, I don't think technology will help, but definitely want to ensure you that these discussions to improve and ensure accuracy will occur. Page 67 Hawaii County Council-44 July 24,2024 MS. KIERKIEWICZ: Thank you for those assurances. I do want to talk offline about the system, because I think that there are ways that we can automate it to prevent errors. And I also think that we need to find ways to crosscheck the transmittal/13-52 against what's in the resolution. Thanks for the latitude, Chair, I yield. CHR. KIMBALL: Thank you, Council Member Kierkiewicz. Any further discussion on the amendment? Seeing none, all those in favor of amending Resolution 550-24 with the contents of Communication 922.1, please say "aye." Any opposed? Vote on Motion to The motion to amend Res. 550-24 with the contents of Amend: Comm. 922.1 was carried by the following voice vote: (Approved) Ayes: Council Members Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, and Chair Kimball —7. Noes: None. Absent: Council Members Evans and Villegas —2. Excused: None. Vote on Motion to Mr. Inaba moved to suspend Council Rule 23 to waive the Suspend Council holdover for the substantive amendment of Res. 550-24. Rules: Seconded by Ms. Lee Loy and carried by the following (Approved) voice vote: Ayes: Council Members Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, and Chair Kimball —7. Noes: None. Absent: Council Members Evans and Villegas —2. Excused: None. CHR. KIMBALL: Back to the main motion, Resolution 550-24, as amended. Any further discussion? Seeing none, all those in favor, please say "aye." Any opposed? Page 68 Hawai`i County Council-44 July 24,2024 Vote on Res. 550-24: The motion to adopt Res. 550-24, as amended to Draft 2, (Draft 2) and Finance Committee Report No. 172 was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, and Chair Kimball—7. Noes: None. Absent: Council Members Evans and Villegas—2. Excused: None. CHR. KIMBALL: Resolution 550-24, as amended, is adopted. OTHER The Chair directed the Council to proceed to the next order of business, Other BUSINESS: Business. (There were none.) ANNOUNCE- The Chair directed the Council to proceed to the next order of business, MENTS: Announcements. (There were none.) ADJOURN- There being no further business, Chair Kimball adjourned the meeting at 1:16 p.m. MENT: CHR. KIMBALL: Have a great day, everyone. Thank you, everyone, for your excellent participation over the last two days. Aloha. OCT 022024 Council Approval: CO JH/dt Page 69