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HomeMy WebLinkAboutMIN FC 2024/10/01 (2022-2024)Committee on Finance 45' Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii 96720 October 1, 2024 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 9:36 a.m., in the Council Chambers, Hilo, by Mr. Kdneali'i-Kleinfelder, Chair. R 0T,L C A LL - Present: Mr. Matt Kaneali'i-Kleinfelder, Chair Ms. Cindy Evans, Vice Chair Ms. Michelle M. Galimba, Member Mr. Holeka Goro Inaba, Member (via videoconference from Kona) Ms. Jenn Kagiwada, Member Ms. Ashley L. Kierkiewicz, Member Ms. Heather L. Kimball, Member Ms. Susan L. K. Lee Loy, Member Ms. Rebecca Villegas, Member STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: (There were none.) Change Order As directed by the Chair and with no objection from the Committee Members, the of Business: following items were taken out of order: Res. 634-24: AUTHORIZES THE MAYOR TO ENTER INTO A MULTI -YEAR AGREEMENT WITH HAWAIIAN TELCOM, INC. FOR CENTREX BIZ PLUS SERVICE FOR THE HAWAI'l POLICE DEPARTMENT AND HAWAI'l FIRE DEPARTMENT Authorizes the Mayor to enter into a three-year agreement at an estimated cost of $22,875 for the Police Department and $11,730 for the Fire Department, for the new joint communications center located at 540 Kupuna Place. Reference: Comm. 1053 Intr. by: Mr. Kdneali'i-Kleinfelder (B/R) FC-45 October 1, 2024 Vote on Res. 634-24: Ms. Kierkiewicz moved to recommend adoption of (Approved) Res. 634-24. Seconded by Ms. Kimball and carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. CHR. KANEALI`I-KLEINFELDER: (Res.) 635-24, please. Res. 635-24: AUTHORIZES THE MAYOR TO ENTER INTO A MULTI -YEAR AGREEMENT WITH DIAGNOSTIC LABS SERVICES INC. FOR BLOOD COLLECTION LABORATORY SERVICES Authorizes the Mayor to enter into a three-year agreement with an estimated cost of $500 per year, to provide blood collection laboratory services for the Hawaii Fire Department to be in compliance with its Bloodborne Pathogens/Infectious Disease Exposure Guidelines. Reference: Comm.1054 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Vote on Res. 635-24: Ms. Kierkiewicz moved to recommend adoption of (Approved) Res. 635-24. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Res. 636-24: AUTHORIZES THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE STATE OF HAWAI`I DEPARTMENT OF TRANSPORTATION, PURSUANT TO HAWAI`I REVISED STATUTES SECTION 46-7, FOR A GRANT TO THE COUNTY OF HAWAI`I MASS TRANSIT AGENCY Allows for the receipt of $1,145,239 in federally -derived funds to purchase Americans with Disabilities Act vans to accommodate the increase in ridership within the Paratransit Program. Reference: Comm.1055 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Page 2 FC-45 October 1, 2024 Motion to Approve: Ms. Kierkiewicz moved to recommend adoption of Res. 636-24. Seconded by Ms. Kagiwada. CHR. KANEALI'l-KLEINFELDER: We have the administrator here today. Can you come up and give us a brief overview, Mr. Kandle? I think this is a nice opportunity for our County. Thanks for being here. (Note: At this time, Mass Transit Administrator Victor Kandle came forward to address the members of the Committee.) MR. KANDLE: Aloha, Council Members. Administrator Kandle. CHR. KANEALI'l-KLEINFELDER: Thank you. Give us a little background on it. It's a $ 1.1 million grant for like smaller buses? MR. KANDLE: It's more of a van. A smallish bus, van, that is equipped with up to three ADA (Americans with Disabilities Act) compliant secured positions and a ramp. And that's to take into account our very old fleet of seven vans that are teetering on the brink of trying to keep up and maintenance issues, and we've had to take some steps just to keep them maintained; increasing the transmission changes, et cetera, in order to kind of keep up with the wear and tear. So, we've been struggling with that a little bit, but we have a solution in the near future and then this also adds to our ability to replace those vehicles and expand our service. So, this also would be a step towards, not directly these vans but, allow us to use our older vans and kind of refurbish them and start introducing at least some measure of the micro -transit that we want to be looking at in about a year. So, these funds were applied by the previous administration to get the grant. And so, we're just asking to be able to be approved to move forward into that plan. CHR. KANEALI'l-KLEINFELDER: Thank you very much. Council Members? Council Member Evans, go ahead. MS. EVANS: Thank you. I see that you had to put in a matching amount. What account did that come out of, your matching amount? MR. KANDLE: That hasn't been decided. And there's a couple of options to be able to do that. We do have the ability to do that. It's also a possibility that given the length of the grant that we would actually do that in the next fiscal year as part of our budget planning. MS. EVANS: Okay. Good. That's good to know. The other thing is there's ten. Can you give us an idea, are you —so, what I read, I'll back up a second. What I read was our County's going to have about 20 percent of its population over the age of 60 or 65, it's coming up here shortly. So, this is really timely that you're doing this. So, my bigger question is, knowing the demographics of the island, Page 3 FC-45 October 1, 2024 will we see these ten disbursed kind of everywhere on the island and will it depend on your demographic kind of zeroing in on where the need is? MR. KANDLE: Yes. So, mostly our issue is the current fleet is very aged and we had been looking for solutions to attend to that. Part of that is probably refurbishing those and probably reusing those in our micro -transit when we get the replacement vans. So, it's not a great expansion to what we have but it's a lot of flexibility when it's coupled with the aged fleet as backup. So, there are some key areas that we're looking at that we would like to consider expansion into, and I think of Ocean View and Waikoloa Village in particular because I know that there are some needs there. I think that most other areas are pretty well -served with our current distribution. MS. EVANS: Okay. Thank you. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. Administrator Kandle, great to see you. I'm looking at the B-52 and it says here that there's a growing number of ridership in the paratransit program. I wonder if you could elaborate and share with us how many folks you are serving through this service? MR. KANDLE: I don't have the specific number, but I know that over just the year that I've been here, we've almost doubled our ridership in paratransit. It is definitely — MS. KIERKIEWICZ: Do you have a range? MR. KANDLE: I don't recall off the top of my head. I'm sorry. MS. KIERKIEWICZ: Okay. No worries. If you could send us that information that would be extremely helpful. MR. KANDLE: Yup. MS. KIERKIEWICZ: And are these vans specialized or are they something that are readily available and can be shipped to us as soon as this, you know, request for funding is approved? I'm just wondering how quickly we're able to get the vans from, I'm assuming the mainland, apply our branding and then in service here on Hawaii Island. MR. KANDLE: We would estimate about nine months between putting it out and receiving. So, we have another related purchase that we're in the middle of right now. So, this is on top of that and that's kind of the roadmap that we'd be using and we've done all of that kind of groundwork already. So, we're pretty familiar with the process and the timing. So, it looked like about nine months. Page 4 FC-45 October 1, 2024 MS. KIERKIEWICZ: Great. So about summertime next year we'll have ten new paratransit vans in operation. MR. KANDLE: Yes. MS. KIERKIEWICZ: Excellent. I will be supporting this. I know that you do a lot of service in the Puna Community. And so, thank you for ensuring that everybody, every ability, has access to this critical transportation. Thank you. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Galimba. MS. GALIMBA: Thank you. I just wanted to thank you and your team for the work that you do. Driving in this morning, pulled out next to a bus in Pahala that was packed. And so, you know, definitely that service is needed, probably even could use more. I know partly it's kids going from Ocean View to School but there were also adults on it as well, so I know that the service is very, very well used in this area. So, thank you so much for your efforts to continue to make that possible. MR. KANDLE: Thank you. We have been working on trying to reach out to some of that community locally in regards to the school children and the impact that they're having, and I'm working with the Department of Education (DOE) to get them qualified to be on some of those buses as well so it's a little more evenly distributed. But that's an ongoing issue. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. Thank you, Administrator Kandle, for this work and for being here. Just wondering, at one point I thought there was some discussion about the paratransit buses being electric. Am I imagining that; that was never part of the discussion? MR. KANDLE: It is part of the discussion. We do have the time to work with that and the need right now is critical. So, we do have the goal of being zero emission by 2035. It's very front and center in our mission. And I think that you said electric, I think of zero emission because I think that area is kind of evolving and including hydrogen and some options that I'm hearing about. So, we definitely have a lifespan that's within that time period that we'd be looking at replacing these in logical timeframe that would still allow us to meet our 2035 goal. MS. KAGIWADA: Okay, but there was never any discussion about potentially making these zero emission? Page 5 FC-45 October 1, 2024 MR. KANDLE: We did talk about that. And then there's an expense and a delay in manufacturing and some other factors that make it currently less desirable to pursue right now. MS. KAGIWADA: Okay. Well, I think when we can, we don't need to keep that 2035 goal as the oath. I mean, if we can do it sooner, especially if we can start to transform our fleet. It seems like the sooner the better. MR. KANDLE: Yes. We do have on order to be delivered in mid -spring for battery electric fixed route GILLIG buses and we're working on an expansion of our fixed route battery electric bus fleet. MS. KAGIWADA: Okay. Great. Okay. Thank you. I'll be supporting. CHR. KANEALI'l-KLEINFELDER: Thank you. Council Member Kimball. MS. KIMBALL: Yeah, two quick things. The Finance Director has informed me that the account is one of the General Excise Tax (GET) equipment accounts that is available for Mass Transit, which is where the matching funds will come from. And I think to your question, Council Member Kagiwada, I believe we were awarded some climate pollution reduction fund money for electric paratransit budget through an application and that went through R&D (Research and Development). So, I'm not sure what the status of that is. But that was a different funding mechanism that we had been awarded. MR. KANDLE: We definitely have a lot of opportunities. We also have a number of grants that are waiting for us to get into and it's definitely something that our team is working on right now. MS. KIMBALL: Okay. Thank you. CHR. KANEALI'l-KLEINFELDER: Thank you. Very good, Mr. Kandle. Looking at the state's climate change portal, they actually, one of our goals is 100 percent zero emissions public government owned transit bus fleets by 2030, is what they put on the website. I know you're right about the 2035. 1 think that's the general overarching in the end, but they're actually listing it at 2030 for government owned bus fleets, which is interesting. MR. KANDLE: Okay. CHR. KANEALI'l-KLEINFELDER: So, we might have to speed up our process here. Really excited about this grant. This puts funding directly into the County to help our ADA requirements and getting our folks who need the services more access to services. This is beautiful and I really appreciate your team jumping on this and getting it done, and if we can see results in a year, that's amazing. So, thank you for bringing this in front of us and appreciate your time. Thank you. Page 6 FC-45 October 1, 2024 Mr. Clerk, we have the motion on the floor to forward Resolution 636-24 to Council with a favorable recommendation. Council Members, all in favor? Vote on Res. 636-24: The motion to recommend adoption of Res. 636-24 was (Approved) carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kdneali'i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. CHR. KANEALI'I-KLEINFELDER: Bill 210, please. Bill 210: AMENDS ORDINANCE NO. 24-32, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAI'l FOR THE FISCAL YEAR ENDING JUNE 30.2025 Appropriates revenues in the Federal Grants — Section 5339 Formula Rural and Small Urban account ($1,145,239); and appropriates the same to the Section 5339 Formula Rural and Small Urban Buses account. Funds would be used to purchase Americans with Disabilities Act vans to accommodate the increase in ridership within the Paratransit Program. Reference: Comm. 1055 Intr. by: Mr. Kdneali'i-Kleinfelder (B/R) Motion to Approve: Ms. Kierkiewicz moved to recommend passage of Bill 210 on first reading. Seconded by Ms. Kagiwada. CHR. KANEALI'I-KLEINFELDER: Any discussion? Council Member Kierkiewicz. MS. KIERKIEWICZ: No, Chair. This is just a companion measure for the resolution that we just approved. Thank you. CHR. KANEALI'l-KLEINFELDER: Thank you. Anything else, Council Members? Hearing and seeing none, motion is on the floor. All in favor? Page 7 FC-45 October 1, 2024 Vote on Bill 210: The motion to recommend passage of Bill 210 on first (Approved) reading was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder— 8. Noes: None. Absent: Committee Member Kimball — 1. Excused: None. CHR. KANEALI`I-KLEINFELDER: Bill 211, please. Bill 211: AMENDS ORDINANCE NO. 24-32, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR ENDING JUNE 30 2025 Increases revenues in the Federal Grants — American Rescue Plan Act Local Assistance and Tribal Consistency Fund account ($32,922.96); and appropriates the same to the American Rescue Plan Act Local Assistance and Tribal Consistency Fund account, for a total appropriation of $832,922.96. Funds would be used for any governmental purpose other than a lobbying activity. Reference: Comm.1056 Intr. by: Mr. Kaneali`i-Kleinfelder (B/R) Motion to Approve: Ms. Kierkiewicz moved to recommend passage of Bill 211 on first reading. Seconded by Ms. Lee Loy. CHR. KANEALI`I-KLEINFELDER: Any discussion? Council Member Evans. MS. EVANS: Yeah, thank you. Director Nakagawa, please. So, I noticed in the letter that's attached, the transmittal letter, it says that the funds come from the United States Department of Treasury to be used for any governmental purpose other than a lobbying activity. Well, any is a really broad statement. Has administration come up with a list of how they're going to spend the money? (Note: At this time, Finance Director Diane Nakagawa came forward to address the members of the Committee.) MS. NAKAGAWA: Yes. Good morning, Council Members. Diane Nakagawa, Finance Department. So, the local assistance and travel consistency fund was authorized under ARPA, the American Recovery Plan Act. It is different than our state and local fiscal recovery funds. When we received these funds, we did put it in the budget for this year. We appropriated in the budget for $300,000. We actually received $832,922.26. This is the actual appropriation of $32,000. These are very flexible funds as you just read in the description; any government purpose other than lobbying and there's no deadline to expend the funds. Page 8 FC-45 October 1, 2024 However, we have been working with our Police and our Fire Departments on an initiative to get AEDs (Automated External Defibrillators) in our public safety vehicles. So, that is the plan for this funding. MS. EVANS: Okay. Just a suggestion. When you do a transfer —I don't know, Chair, if you do a transmittal letter, if you can tell us how you plan on spending it would be —because then it would be on public record. MS. NAKAGAWA: Okay. If we have that information, we'd be happy to put that in. MS. EVANS: Okay. Thank you. I yield. MS. NAKAGAWA: We have not gone through the procurement process yet, so that is still in process. CHR. KANEALI'l-KLEINFELDER: Thank you, Director. Okay. Seeing no further discussion, motion is on the floor to forward Bill 211 to Council with a favorable recommendation. All in favor? Vote on Bill 211: The motion to recommend passage of Bill 211 on first (Approved) reading was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kdneali'i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. CHR. KANEALI'l-KLEINFELDER: Let's go back to Communication 14.14, please. Return to Order The Chair directed the Committee to return to the order of business. of Business: COMMUNI- CATIONS: Comm. 14.14 Motion to Close File The Chair directed the Committee to proceed to the next order of business, Communications. MONTHLY BUDGET STATUS REPORTS FOR THE MONTH ENDED JULY 31, 2023 THROUGH THE MONTH ENDED JANUARY 31, 2024 From Finance Director Diane Nakagawa, dated August 30, 2024, transmitting the above report pursuant to Section 6-6.3(h) of the Hawaii County Charter. Ms. Lee Loy moved to close file on Comm. 14.14. Seconded by Ms. Kimball. Page 9 FC-45 October 1, 2024 CHR. KANEALI`I-KLEINFELDER: Thank you for being here today, Director. I'll let you go ahead and then we'll go to questions if there are any. (Note: At this time, Finance Director Diane Nakagawa came forward to address the members of the Committee.) MS. NAKAGAWA: Sure. Thank you, Chair. So, we do have this item here with our six monthly budget status reports. I just want to acknowledge the fact that this is rather late. We've had some challenges over the last year, primarily due to staffing. We are back on track. We were down an Accountant V for over a year, and we just hired an Assistant Controller. So, that is a brand-new position. It is not our intent or expectation that these be this late. We understand this is a valuable tool for you to look at our County budget, and we will get back on track. The prelim through June 30, 2024, will actually be submitted or was submitted yesterday, so you'll get those as well. But I just want to acknowledge the fact that we're working to get better. We are looking at our challenges and finding ways to be more efficient. We understand the deadlines and how important they are. But these are here for you and again, we look to just get back on track. CHR. KANEALI`I-KLEINFELDER: Thank you, Director. Council Members? Council Member Villegas. MS. VILLEGAS: Thank you, Director. I just want to take a moment to acknowledge and express my appreciation for your honesty and humility. Your team is working incredibly hard, also navigating IT (Information Technology) transitions and I had some interesting conversations during our HSAC (Hawai`i State Association of Counties) conference with a gentleman who was working with the company working on that, and he had such a high level of respect and regard for your team for having worked with such obsolete software for so long. think he called it like working with an abacus. And I just, you know, I take that for what it is. But it's not a negative reflection. It's actually such a testament to the work and the workload and what you've been able to accomplish with unfortunately, out the necessary technology and infrastructure to support a Finance Department. So, in my humble six years here, there have been a number of times when we have gotten our reports a little bit late. And so, under the circumstances you guys have been working under, I just want to say thank you and we appreciate you, and I'm really looking forward to you having like a —what is it when you go to middle school, you have to go to a scientific calculator, right, instead of an abacus or something. So, I'm excited for how much ideally easier your world is going to be even though it's a heavy lift in the interim. So, thank you. Thank all of you, and your team. MS. NAKAGAWA: Thank you. We appreciate that. Page 10 FC-45 October 1, 2024 CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Galimba. MS. GALIMBA: Thanks. I also just realized how difficult it is to produce these on paper, big stacks of paper for us, and I appreciate that, but I'm also looking forward to not getting them in a sense because I feel like there could be a much more efficient ways to get the same kind of information. So, I appreciate all the work that goes into getting those to us. And also, just hoping to soon have a conversation about a more efficient way for you folks to produce them and for us to have the efficient information. Thanks. CHR KANEALI`I-KLEINFELDER: Thank you. Council Member Kimball. MS. KIMBALL: Yeah. I'm going to build on Council Member Galimba, as much as I know how much work your staff put into these, I'm not sure how useful they are at the end of the day, if I'm honest. It's not like we can change anything when it's happened. Does it form our decisions going forward? Maybe to a certain extent, but I would strongly suggest as you guys are implementing your new system that we sit down and maybe through a communication, and we've done that a couple of times, what do we need as far as reporting. And it's not just these reports, but it's the change order reports and the transition of position reports. And I'm sure these were all mandated at one point or another. I think it behooves us to evaluate the entire list of reports that we're requesting from Finance and either retool them so that they are easy to create and useful or just discontinue them and, you know, provide another way to access that information on an as needed basis. I just feel strongly that we need to work smarter and not harder when it comes to the budget questions. Yeah. I don't want to diminish the hard work that I know everybody put into these reports, but I think we should work together to get them into a format that can be produced more timely and is more constructive for our deliberations. MS. NAKAGAWA: Yeah. Chair Kimball, I really appreciate the suggestion and openness to look at the tools we actually utilize. So, we've had these discussions internally just over the week on these monthly budget status reports and how, one, the new system can make things a little easier with our reporting and then more on visuals, but also having more discussions on making things purposeful and useful. So, we're very open to the discussion so that we can use our time wisely and allow you to have the tools that you need as well as the public. So, thank you for that. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Lee Loy. MS. LEE LOY: Thank you. I was going to stay out, but everybody's jumping in. I think there's two sides of this conversation, right? You guys are doing an excellent job with the equipment that you have, but I also think that Council has to be thoughtful on what they need. And so, I'm going to renew my request for Page 11 FC-45 October 1, 2024 multi -year leases at the top of the list so we can see that spend down, you know, into future budgets. But, you know, to the point that Ms. Kimball is making, you know, we also have to be very thoughtful about the information that helps us make the good decisions. So, in that conversation, if members of the Council really could express what they're looking for, that would be incredibly helpful. And I'm trusting that the equipment that you guys are getting as far as the different funds can help comb out like some real high-level conversations that help us make great decisions. MS. NAKAGAWA: Thank you, Council Member Lee Loy. Just to let you know that report will be ready for budget and probably much sooner. It is already drafted so we're just refining it, but thank you. MS. LEE LOY: Thank you, Chair. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Evans. MS. EVANS: Thank you. You know, I know that this monthly report is very critical to the administration and running the County. I think for some Council Members that like to get into the nitty gritty detail and the numbers. If they know how to read these type of reports, I think they're very enlightening. It'd be nice to have them available. I'm not sure that you needed to print them all and have them delivered to my office, but I do think having them available to those Council Members that really like to get into that kind of detail because it is accounting and bookkeeping and some people really like that, you know, they like to dig into that kind of detail. I think it's very important to have it available to the Council. But you now, for some of us it's maybe just too much information. But, if I feel there's a department that I'm concerned with, this monthly budget report is very helpful. So, it is a wonderful tool and I'm really, really glad you do it. I've seen people use these. If they're really, really good at it, they just flip through it, and they can instantly see where there's problem areas just by the numbers. Again, I'm not, you know, maybe next time around if I'm reelected. I mean, I think you just learn. The more you do this, the more you learn about the detail and how to use the detail that teaches you kind of maybe where the areas are that need improvement. So, I appreciate the work. It looks like it's a heavy lift. I'm really glad that we have a new fiscal management system being put in place. Clearly, this needs to be digital, and I think, you know, things will change and make it much more transparent for all of us. So, my hats off to, I mean, that was a heavy lift. My question was, yeah, on December of 2023 we're getting now. That really stood out to me. Why is it taking so long? So, thanks for explaining it. And timeliness, Page 12 FC-45 October 1, 2024 I think, will really help make a difference for the decision makers. Thank you. I yield. CHR. KANEALI'l-KLEINFELDER: Thank you. Thank you, Director. And then, appreciating Ms. Oshiro. Thank you. And your recent hire, I'm not sure how Parks and Rec is feeling right now, but Mr. Sewake, thank you. MS. NAKAGAWA: We're very happy to have Assistant Controller Reid Sewake join the Finance Department. CHR. KANEALI'l-KLEINFELDER: Just recognizing too, we're asking for information and better ways of doing it, and I think I say this each year, but your department usually doesn't ask for more personnel and more positions, and I think that is imperative to really review what you need as a department to ensure that you can get the work done. You kind of are our core in our County because you handle the finance, and that's where the funds come from, that's where they go to, that's how we make our budget. Having you appropriately staffed, and your department appropriately staffed is imperative to ensure that we run well. So I'm sure this year that you have the right amount of positions going forward, as we look into our next year's budget. And then I appreciate you folks trying to catch up. And I do appreciate these, thank you, especially come May, June, basically spring, we're always looking at the budget, I really utilize those to see where we are in each department, how much funds they've spent down and where their budget stands. So, I think those are an incredibly useful tool. So, thank you. And I appreciate your time today. Thank you for getting that done and trying to catch up. With that, we have the motion on the floor to close file on Communication 14.14. All in favor? Vote on Comm. 14.14: The motion to close file on Comm. 14.14 was carried (Filed) by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kdneali'i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. (Note: Items in this category were taken up previously, out of order.) CHR. KANEALI'l-KLEINFELDER: Let's go to Bill 214, please. Page 13 FC-45 October 1, 2024 BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. (Note: Items in this category were taken up previously, out of order.) Bill 214: AMENDS ORDINANCE NO. 24-33, AS AMENDED, RELATING TO PUBLIC IMPROVEMENTS AND FINANCING THEREOF FOR THE FISCAL YEAR JULY 1, 2024 TO JUNE 30,2025 Increases the Environmental Management Hilo Wastewater Treatment Plant Rehabilitation and Replacement project by $116 million, bringing the total appropriation to $226 million. Funds for this project shall be provided from the General Obligation Bonds, Capital Projects Fund — Fund Balance and/or other Sources and would be used to renovate the Hilo Wastewater Treatment Plant. Reference: Comm. 1082 Intr. by: Mr. Kdneali'i-Kleinfelder (B/R) (Note: Comm. 1082. 1, from Environmental Management Director Ramzi 1. Mansour, dated September 30, 2024, transmitting a PowerPoint presentation to Bill 214, was circulated.) Motion to Approve: Ms. Kimball moved to recommend passage of Bill 214 on first reading. Seconded by Ms. Lee Loy. CHR. KANEALI'l-KLEINFELDER: We have the Director here today joining us in the Hilo Chambers to round out our conversation. We also have a presentation I believe. Did you want to go to that presentation now, Mr. Mansour? Do you want a minute; do you need time to get anything together or are you good to go? Okay, wonderful. Director and Deputy, thank you for being here today. Please go ahead when you're ready. And you also have the support of the Finance Director here. Press the mic, introduce yourself and go ahead. Let's start this off good, Director. (Note: At this time, Environmental Management Director Ramzi Mansour came forward to address the members of the Committee.) MR. MANSOUR: Good morning and thank you for the invite. And I just want to thank each one of you for the last three, four years, going through the challenges and the projects for our department and the County. And successfully we are now able to deliver on this massive great project for the community. (Note: At this time, Environmental Management Director Ramzi Mansour and Business Manager Robin Bauman came forward and provided a PowerPoint presentation to the members of the Committee. For viewing of the subject presentation, see the DVD copy of the meeting proceedings Page 14 FC-45 October 1, 2024 on file in the Clerk's Office. A copy of the PowerPoint presentation is made a part of the record, see Comm. 1082. 1.) CHR. KANEALI'l-KLEINFELDER: Thank you very much, Director and Deputy Director. Council Members, questions? Council Member Evans. MS. EVANS: Yeah, good morning. It's a lot of work. Interesting kind of way this has been managed. Normally, there's value engineering. It's just kind of shocking how you said it came 70 percent above what you thought it would come in at. So, before you went out to bid the first time around, didn't you value engineer it and have a sense of what the cost would be before it went out to bid? MR. MANSOUR: Council Member, that's a great question. The answer is yes. Unfortunately, the County of Hawaii have never had these huge project. City and County, they're doing more than we do. We haven't had a wastewater treatment project for the last thirty plus years. So, it was based on an estimate and also based on who was going to bid for it, and the first time we only had one bidder. So, it's hard to evaluate when you only have one submittal. So, we didn't know. Had it come at multiple bids, then we can know where the market value is. So, yes, we have contractors on board, we have consultants, we have a lot of expertise and experienced staff when we did it. MS. EVANS: So, do you feel like in the future if you have only one bid, you're just uncomfortable with one bid, you're just uncomfortable with one bid, so it could happen again. MR. MANSOUR: It could. It's uncomfortable and also, we have, when we receive the bid, we decided what is the best interest to the County of Hawaii MS. EVANS: Right. MR. MANSOUR: We evaluated the bid, but we also understood that we have another project, which at that time was bid number two, coming up tailing the bid number one. So, if you combine them together, you're going to get a more favorable price and that's what we did. MS. EVANS: Personally, I like the combination of Phase I and 2, and getting the bid on it, but you're also coming up with a rough estimate on the green portion, which is Phase 3. So, you're willing to throw a number at it not knowing what the bid will be and so you're asking us to fund something that you think it might be worth that. So, should we be funding the third phase of it now? Can we not wait and come back and amend it or when will you go out to bid? I mean, is it premature to fund Phase 3 when we don't know when you're going to go out to bid for it. Page 15 FC-45 October 1, 2024 MR. MANSOUR: Well, we know we're going to go out to bid soon because it's under the AOC (Administrative Order on Consent), we need to start construction August 1, 2025. So, our intent is the future, which is 2025, it's almost at 70 percent design complete so, we're finalizing the package as we speak. So, the idea is going to go out on the street early next year. When we do estimates, we do it to the best of our knowledge and expertise, experience, consultants, that Carollo Engineering are the platform for so many companies. So, they're doing projects all over the country and they have a construction division within their organization that assists us as well. MS. EVANS: It just seems like you're asking us to prefund something that hasn't gone out to bid and you've just mentioned that we need to do something August 2025. It's almost like saying, you know, we're telling you what we'll be willing to do before we even ask for people to tell us what they're willing to do. So, we're kind of showing, I mean, we're kind of stacking maybe a little bit. MR. MANSOUR: I'll have Robin talk more. But remember, the project already started. We're in the design phases so we need to also cover the design costs. MS. BAUMAN: Yeah. One thing I just wanted to point out is, you know, this is the appropriation. The funding is separate. We're not looking at funding that future bid right now. But typically, before we do go out to bid, we do seek appropriations for the project — MS. EVANS: Which is what we are willing as a County to pay before we even go out to bid. I know I always have a little bit of —it always kind of bugs me a little bit when we show our hand, you know, this is what we're willing to do, and we don't know what it costs. MS. BAUMAN: Exactly. MS. EVANS: So, yeah, that's always been a little grub of mine. But I mean, I know it can be a practice. So, switching off that, let's talk about that we have to do this because we're under the EPA (Environmental Protection Agency) mandate. How does that really play into this third green phase where, you know, when do we really have to start on that to meet whatever our EPA requirement is? MR. MANSOUR: Each of the bids are contiguous in a way because each supplement itself —so, the green phase is the actual treatment, nitrification, denitrification of the affluent before discharge. So, you have to have all components for it to succeed and work in compliance. Taking one component, you know, we have until 2035 for all Countywide AOC, but the plan is do it now, you delay it, later it's going to cost you more, and we've seen it. Page 16 FC-45 October 1, 2024 MS. EVANS: So, the green phase basically didn't go out? When you went out to bid you just didn't have your documents; you weren't ready to go to make a complete package to go out for bid? MR. MANSOUR: That is correct. We didn't have enough time. I just want to thank our consultant and our staff. You've seen the amount of work. That type of work sometimes takes five to ten years to get to where we got in one year. From environmental, from going through the permitting, from going through Department of Health (DOH), SHPD (State Historic Preservation Division), designer, making the technical decision right on the spot, and that's what you got in one year, and usually that takes — MS. EVANS: And we're under contract with what engineering firm that did that? MR. MANSOUR: Carollo Engineering. MS. EVANS: Carollo. Okay. So, are we okay with that contractor; are you going to come and ask for more money for that contract? MR. MANSOUR: As Robin had mentioned, there is money included into the construction management and engineering support during construction. But as far as the design, the design has been completed. MS. EVANS: Okay. Thank you, Chair. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Galimba. MS. GALIMBA: Thank you. I just want to thank your team for being able to put together such a huge project in a short amount of time and I know under a lot of pressure. We have multiple projects in the air as well, and I can see that value in having gone to a more complete package, 126 versus 177, I think it was. I mean, that's a big difference and hopefully it will be a better project overall. I did have like a couple little questions. What's the capacity per day of the project when it's done? I guess now versus when it's done, is there going to be any increase in capacity built into this or is it more or less the same? MR. MANSOUR: When we talk about the wastewater treatment capacity, the plan is designed and permitted to handle five million gallons per day up to 13 million gallons per day including infiltration and flow coming to the plant. What this project allowed us to do to become more efficient in the treatment and to replace things that is, you know, it's broken, things that is not functioning. So, eventually, when we finish rehabbing some of our shore collection system, that will allow us to gain more capacity as we reduce the amount of inflow going into the sewer system itself. Page 17 FC-45 October 1, 2024 And also, we will be coming to you to change our current Code. Our current Code allows us to follow city and County standard and it's very, very conservative when it comes to evaluation of the gallon per day used during the design process. So, we could save about 20 to 30 percent if we do it pertaining to the County of Hawaii. So, we're working on that as well. So, I could see even with the five MGD (Million Gallons per Day) we're going to end up gaining 30 percent capacity in changing the Code itself. MS. GALIMBA: That's a really good idea. I know it's come up in discussions around other wastewater situations like especially in areas on catchment where it's like —we were talking about this in the Miloli`i situation of you had to do 60 gallons, was it 60 gallons per day and like nobody's using that much there. So, I think that's a really good idea. Obviously, it's different here but I think it's similarly folks on Hawaii Island — MR. MANSOUR: And thanks to Pahala, Nd'dlehu community. When we first started, that's exactly what we did. We looked at the water usage because it was designed when didn't factor. I mean, literally, we knocked it down from 600,000 gallons per day to about 60,000 gallons per day. That's a huge difference. MS. GALIMBA: Thanks. You know, I was sitting next to, I think his name is Roger over there at City and County. So, I got to ask him a few questions about their wastewater system there, which is obviously multiple times larger than ours. And also, the amount of money that they're having to put into their system is mindboggling. I mean, their secondary system, he's budgeting I think he said $2 billion for their secondary. So, it kind of makes our, as large as this is and as painful as this is for our County, I think it is right that the sooner we get it done it's not going to go down in price. So, to be expeditious and get it done has multiple benefits for lower costs and also to not get in trouble with the EPA. The final thing I just wanted to ask is there any chance we can get any other federal funding for these projects like when we were at NACo (National Association of Counties) there was a lot of talk about infrastructure dollars. MR. MANSOUR: Yes. We're never going to stop chasing federal money and grants. Like what Robin had mentioned, there's $30 million in state revolving fund and we're going to continue every year, every week trying to find opportunities. MS. GALIMBA: Okay. Thank you very much. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Kimball. MS. KIMBALL: Yeah. I'd like to make a motion to move into executive session to have some conversations with our Finance and Environmental Management Page 18 FC-45 October 1, 2024 Director because we have an acting legal agreement, the AOC, and contract negotiations around this project, I think it would be good to enter into executive session to discuss our duties and liabilities with our attorneys. Vote on Motion to Ms. Kimball moved to enter into Executive Session in Enter into order to hold attorney -client privilege discussion regarding Executive Session: Bill 214, as authorized by Section 92-5(a)(4) of the Hawaii (Approved) Revised Statutes. Seconded by Ms. Kagiwada and carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Inaba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. CHR. KANEALI`I-KLEINFELDER: We are in recess. Recess: At 10:32 a.m., the Chair called for a recess in order to clear the room. Reconvene: The meeting reconvened at 11:22 a.m. CHR. KANEALI`I-KLEINFELDER: Okay. We are back from Executive Session. Calling this meeting out of recess. Council Member Kimball, please summarize the conversation that we had in Executive Session, please. MS. KIMBALL: Thank you, Chair. So, the Executive Session allowed us to consult with the County's attorney with respect to contracting issues relating to this particular project as well as our liabilities with respect to existing AOCs and pending lawsuits. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay. Council Members, further discussion with the department, other questions that there might be? Okay. Council Member Evans, go ahead. MS. EVANS: I just wanted to hope that when this contract is finally settled, that my concerned area that I'm looking at is obviously change orders. But more importantly, as this moves forward, I really hope that we support the department with staffing to make sure that we monitor on a regular basis what's really going on and also that people will have the knowledge because I do believe we're challenged being an island state. A lot of times materials become unavailable that we expected, and they will ask for substitutions. So, I think you're going to have to have some staffing to really be able to, as this moves forward, make sure that Page 19 FC-45 October 1, 2024 the County has that expertise. So, I just wanted to make that of record. Thank you. Thank you, Chair. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. I'm going to be very reluctantly supporting this. I feel there's really no choice here. We've been painted into a corner. This is a requirement that we have to solve for. I feel like this process has not been very transparent. I'm worried about how much this is actually going to cost us. This is one of the many requirements in the AOC, and it feels like there's no end in sight. I know you folks are doing your job. I really do. I have tremendous respect for the volumes of paperwork, the scoping that you had to do for this project. This is not easy. I'm sure this is very difficult to try to figure out how do we make sure that we are taking care of business and making sure the work gets done. I just want the work to get done. I don't know if I have 100 percent confidence in the contractor that's been selected. I do have concerns. I can't recall a major County project where we have finished on time and on budget, and I just have to put that out there. I want to make sure that we're avoiding any sort of environmental disaster here, right? So, I'm going to be supporting this but, and Director Nakagawa, I think it's really important that going forward, we have to be able to balance the many needs of our County. Environmental Management is just one of the many essential services that we provide. I think about our roadways, I think about other infrastructure, I think about fire stations. There are so many challenges, and we have to find a way to balance it all. So, I just had to say that because walking in, I was a no. But I know how incredibly important this is, but I'm going to expect from the department at some point this year, early next year, just understanding what we're getting ourselves into and I need to see the light at the end of the tunnel. I really do. I need to see how this fits into the larger grand scheme of things and to understand what this is going to cost us. Thank you. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. I just want to say that I'm really proud of this body and this administration for finally getting this done. It's incredibly challenging and it's going to be hard for everybody. I think, you know, we know we're going to have sacrifices going forward because we have to do this. But I'm incredibly proud of this group for knowing the buck stops here. We have to do it. So, thank you for doing this and I'll be supporting. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Villegas. MS. VILLEGAS: Yeah. I've spent more time talking about poop and our wastewater in my time in office than almost any other issue. Really difficult and challenging time to be a member of this body and both in the administration Page 20 FC-45 October 1, 2024 because these are issues that were caused by decisions not made by this group. And by putting off of taking care of the things that needed to be taken care of and having seen even just what a small wastewater project costs for a community because of getting cesspools, how that price doubled, I believe, in the five years that there was a delay on that. I firmly believe from experience that the price of this project would also do the same if we put it off any further. So, thank you for the work that you did, for your visual and tactile example of stacks of paperwork and the reports that you had to put together. None of this is easy; none of this is glamorous per say, but wastewater can be sexy because we think our reef ecosystems are priceless and sexy, and those fish, and those coral ecosystems deserve a chance to thrive and grow because they are our forest of the sea. They are also pivotal to many of our economic drivers for our community. So, I'll be supporting this. I also want to thank Finance. You now, one of the things I said years ago was an A -plus bond rating is awesome, but sometimes that grade isn't as important as getting the things that have to get done, done. And so, thank you for your leadership and balancing those very elusive great points as far as money goes and these projects. And I think, you know, this is going to be my call out to the community. As we move forward with these contracts, and to our business owners and to the people and the organizations that end up with this contract, you're accountable to our community, to our people, to the future of this island and this home; for your integrity, for your diligence for utilizing every penny of the hard earned money of the people of this place to ensure that these projects get built out ideally under budget within timeframes, but that we all hold pieces of accountability to one another as we move forward with these things. So, only together and by remaining connected and staying pono, do we have the opportunity to break cycles of mistrust with community and to ensure that as we navigate our way out of what is a shit storm, we can end up with cleaner water, cleaner land and that our mo`opuna's mo`opuna's mo`opuna, can swim in clean oceans and still enjoy the coral reef ecosystems and the fish, and drinking water, and our aquifers. So, thank you for your help today and bringing this forward to us. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay. Director, thank you for the discussion today, and Ms. Robin, thank you. Couple brief questions. Who's the project manager for this project going forward. MR. MANSOUR: That's the staffing shortage. Currently, we have Mark Grant. He's been managing the design. Where's Mark? I just want to thank him. In addition to him managing Hilo, which is as you've seen great project, also, he's still managing Pahala and Nd'dlehu and many other projects. So, staffing is my priority, and I just need to make sure that we get the support so we have an onsite project manager at Hilo that could come in and start catching up. And we're going to also have the consultant that did the design to standby providing engineering services because they did the design. So, if there's substitute or some Page 21 FC-45 October 1, 2024 metals, they'll do the review, concur with the onsite project manager. So, we're working on it. Hopefully, I know we started late, but it's just staffing has been very, very hard to get. CHR. KANEALI`I-KLEINFELDER: Okay. And Mr. Grant is going to be sticking around through the longevity of the projects. MR. MANSOUR: He better. No, he's a great asset to the County and to the communities, and he's just doing a great job and he's going to continue. He's currently the Acting Deputy Chief. So, he's going to continue. Hopefully, we'll get him some help. CHR. KANEALI`I-KLEINFELDER: Okay. Mr. Grant, thank you for being here today. Just having watched different projects move through the County, a lot of this is going to be on your shoulders as well as Director, there could be, there will be changes in personnel over the years coming. If this is a five -to -seven-year project that is going to be something along the lines of the 30-year facility, then we want to ensure that this project is done in a very efficient and a very mindful way. So, a lot of this responsibility may and will land on you. So, from listening today, you have our support; you have the administration's support. But also, if things go wrong, I'm sure this will be something along your desk. So, thank you for being here and thank you for time and energy so far, and please keep up the good work. Let us know what you need. And then to the department, what is the expected lifetime of the facility? MR. MANSOUR: Most wastewater treatment plants you get up to fifty years if it's maintained correctly, you know, annually, periodically. It depends on the components lifespan, usually 15 to 20 (years); like if you have major pumps, motors. The building structure itself, this time around, we're going to treat actual concrete to prevent corrosion so we're going to have a better lifespan on the concrete. CHR. KANEALI`I-KLEINFELDER: Okay. So, we've learned lessons, and those lessons are being incorporated into our design and our facility this time around, correct? MR. MANSOUR: Yes. Yes. We look at lifespan, maintenance, and flexibility as well. CHR. KANEALI`I-KLEINFELDER: Okay. Who's our consultant? MR. MANSOUR: Carollo Engineering. CHR. KANEALI`I-KLEINFELDER: Okay. Based? Page 22 FC-45 October 1, 2024 MR. MANSOUR: They're all over the country but they are based in Honolulu. Their main office for the State of Hawaii is in Honolulu. CHR. KANEALI'l-KLEINFELDER: And their background in construction of this type? CHR. KANEALI'l-KLEINFELDER: Wastewater design. How long have they been in business? MR. MANSOUR: They've been around for a long time. I don't know the exact years, but they've been around for a long time. CHR. KANEALI'l-KLEINFELDER: Okay. And then the contract was awarded? MR. MANSOUR: Not yet. CHR. KANEALI'l-KLEINFELDER: Okay. Okay. MR. MANSOUR: You're talking about the contract for construction? CHR. KANEALI'l-KLEINFELDER: Yes. MR. MANSOUR: Yeah. Not yet. CHR. KANEALI'l-KLEINFELDER: Okay. That was helpful. I think I have more questions but more related to the buck. So, I appreciate the overview. Thank you for being here today. Thank you for bringing all the documents. I know we didn't go through it word for word, but your work is clearly shown. And then to Mr. Grant, a lot is riding on you. Please let us know, let your people know, over the years, what's needed, so this becomes a legacy project that we can all stand on. Thank you. Okay. Council Members, anything further? Okay. Seeing none, we have the motion on the floor to forward Bill 214 to Council with a positive recommendation. All in favor? Vote on Bill 214: The motion to recommend passage of Bill 214 on first (Approved) reading was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Kagiwada, Kierkiewicz, Kimball, Lee Loy, Villegas, and Chair Kdneali'i-Kleinfelder — 8. Noes: None. Absent: Committee Member Inaba — 1. Excused: None. CHR. KANEALI'l-KLEINFELDER: Bill 215, please. Page 23 FC-45 October 1, 2024 Bill 215: AUTHORIZES THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE COUNTY OF HAWAPI FOR THE PURPOSE OF FUNDING ALL OR A PORTION OF THE COSTS OF VARIOUS IMPROVEMENT PROJECTS; FIXES THE FORM, DENOMINATIONS, AND CERTAIN OTHER DETAILS OF SUCH BONDS AND PROVIDES FOR THEIR SALE TO THE PUBLIC; AND AUTHORIZES THE TAKING OF OTHER ACTIONS RELATING TO THE ISSUANCE AND SALE OF THE BONDS Authorizes the issuance of up to $150 million in General Obligation Bonds to fund certain Capital Improvement Projects 'including: Construction of the Hilo Wastewater Treatment Plant; Parks and Recreation Americans with Disabilities Act projects; planning and design for a County morgue; Animal Control shelter repairs; Central Fire Station repairs; and maintenance of other County facilities. Reference: Comm. 1083 Intr. by: Mr. Kdneali'i-Kleinfelder (B/R) (Note: Comm. 1083. 1, from Environmental Management Director Ramzi I. Mansour, dated September 30, 2024 transmitting a PowerPoint presentation to Bill 215, was circulated.) Motion to Approve: Ms. Galimba moved to recommend passage of Bill 215 on first reading. Seconded by Ms. Kimball. CHR. KANEALI'l-KLEINFELDER: How about the Finance Department, if you could lead us off, walk through the bond and what's in front of us, and then we'll go to questions from the Council. Thank you for your time this morning. (Note: At this time, Finance Director Diane Nakagawa came forward to address the members of the Committee.) MS. NAKAGAWA: Thank you, Council Members. Continuing our discussion on our last item. CHR. KANEALI'l-KLEINFELDER: You could introduce yourself MS. NAKAGAWA: Diane Nakagawa. Finance Department. Thank you for that. CHR. KANEALI'l-KLEINFELDER: Thank you, Director. MS. NAKAGAWA: But I'd also like to introduce Chris Nakano, who's our County Treasurer. Chris has been an integral part of planning as we move forward. I just appreciate his efforts. So, the item in front of us is our bond authorization primarily for the Hilo Wastewater Treatment Plant project as well as other wastewater commitments looking into some of the design for these other projects. You know, as we mentioned, with this $150 million bond authorization, we're looking at 14.5 percent of our authorized, but unissued and our debt service Page 24 FC-45 October 1, 2024 is eight percent of our issued debt, which is within our GFOA (Government Finance Officers Association) guidelines, which is below our 15 percent of expenditures. So, we're here today to look at, if you look at the exhibit, primarily as we discussed, Hilo Wastewater Treatment Plant and design for other facilities. But we also have some projects under Parks and Recreation and Public Works. Both, Director (Maurice) Messina and Director (Steve) Pause are here today to discuss some of the projects on their list as well. I really want to just say we appreciate the discussion about the significance of the projects we have ahead and also the discussion about all the other County priorities that need to happen. And I just want to reiterate that our Finance team —it is evaluated knowing just the significance that it plays, right, and our challenges ahead. So, the time and attention we take to looking at what is best for the County and the timing of it has been taken into consideration in these projects. But as I said, the other departments are here to talk a little further. I just wanted to give you a little bit more details on some of their projects, so they're happy to talk about that as well. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay. Council Members? Council Member Kimball. MS. KIMBALL: Yeah. Just wanted to disclose that I think it's in the best interest of to recuse myself from decision making on this as there are a couple projects that are potentially contracted by my husband's architectural firm, and so I'm going to recuse myself from decision making on this one. CHR. KANEALI`I-KLEINFELDER: Okay. Council Member Evans. MS. EVANS: Yeah. Looking at your projects, these are projects that they would be like almost say shovel ready. But are these projects that have already gone through kind of a planning design and what you're doing is trying to get us money so you can roll out the construction part of it? MS. NAKAGAWA: Yeah. Council Member Evans, thank you. Great question. And I'm sorry, I missed that in the introduction. But one of the things leading up to the formation of the list, discussions with the department really on what's going to happy now between the next six to twelve months. These are projects that are ready to go. So, these are the immediate needs of the departments and that's why they're on this list. They are ready to get these things done. MS. EVANS: And I noticed, you know, there's Parks and Recreation, Public Works, and then the Wastewater Treatment Plant. There was no other discussion of the other wastewater projects on the island. I mean, it's not, I think there's other ones too, but it doesn't appear on here. Is there no money for that? Page 25 FC-45 October 1, 2024 MS. NAKAGAWA: As we've discussed, there are other wastewater projects that are on our list. And so, the other facilities that's mentioned in the exhibit is really to look at beginning the design on some of those projects. So, we wanted to make sure there was enough money to start those projects. MS. EVANS: Okay. So, CIP (Capital Improvement Projects) will cover design? MS. NAKAGAWA: Yes. MS. EVANS: Okay. That's really good to know. And I noticed that you went with repairs. I don't see anything on here as a, like build a new animal shelter. It's like you're just repairing. And so, there's no like new projects. This is all repair and maintenance pretty much? MS. NAKAGAWA: Yes. And then if we have specific questions, we can call up our other departments. But, you know, unfortunately we are at a place where a lot of our facilities are aging, and these repairs and maintenance are necessary to keep them operational. So, that's the focus, to keep them operational. MS. EVANS: Alright. So, I'm going to assume, Steve Pause, would you like to come up for sec. Thank you for the latitude, Chair. Just a question. So, there was a matrix and a determination of functionality and potential dangerous if we didn't repair them; did you go through some matrix? I'm just curious how you stack up your priorities here. (Note: At this time, Department of Public Works Director Steve Pause came forward to address the members of the Committee.) MR. PAUSE: Steve Pause, Director of Public Works. So, we have a CIP list, and we just recently went through a review with Finance, and we've got two buckets, right? We have the Building Division, and we maintain, and we build facilities for the County. And then we have engineering and that's more geared towards roads and drainage and bridges and things like that. So, I will tell you that we've went through a ranking for each bucket, if you will, and developed a list of priorities. But to get back to your earlier question, you were talking about are we doing maintenance or are we doing new? So, generally speaking, as an example, we purchased an animal control facility for the east side, and it needs lots of work. So, the animal control shelter repairs, you know, are associated with that. We have one on the west side, which also needs work. So, it's repairs and maintenance. The same thing with the fire stations, right? Central Fire, we are presently under design. We have an architect on board, and we have three sections with work on ceilings, work on the hose tower, work on the roof repair. So, the only one I would say, in my mind, on this list we are asking about new things is, and I'm not Page 26 FC-45 October 1, 2024 quite sure, I know we have money on this bond to work on the temporary morgue, and then we'll be looking at a long term morgue as well. And that'll be something where we'll be doing the design work on the upfront. I call it front end loading. But all the upfront work, the design, as well as the permitting, the EA (Environmental Analysis), EIS (Environmental Impact Statement), all of that kind of stuff, so that would be incorporated. That would be the one project I'm thinking out loud that is just kind of like a brand new project that would just really be focused on the design and the upfront money right now. MS. EVANS: Okay. Thank you. I kind of assumed maybe that you did have stacking like a matrix on how you determine what rose to the top. So, I appreciate the comments. Thank you. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Kagiwada. MS. KAGIWADA: Thank you. Just a couple things. One is, thank you, Director Pause. You know, these things obviously have been outstanding for several years and I really appreciate these coming to the top of the list. But you did talk about the Building Department and the roads, and I don't really see anything here for roads unless there's something under repairs and maintenance for roads. MR. PAUSE: So, one of the previous or maybe two of the previous bond ordinances had specific money called out for bridges and for the contribution of our —the County's contribution to projects where we might be receiving 80 percent funding from the state or 75 percent funding from FEMA (Federal Emergency Management Agency). So, the one road thing that comes to my mind here and I'm not quite sure if it's explicitly called out, is I think you're aware that we're doing drainage work or drainage studies on the west side. The recent flooding a few weeks back also opened our eyes to a few more areas. So, whether we specifically have money in this bond or not, it's another, if you will, infrastructure needs that in order to solve problems we need to understand what causes the problems. So, I would view it as like upfront study work. Again, maybe not specifically called out here but that's part of what the engineering folks are working on. MS. KAGIWADA: Okay. That makes sense. Yeah. Like I said, I, you know, I'm in support of obviously these are all things that we have to do. So, thank you and yeah, I'll be supporting. Thank you, Chair. CHR KANEALI`I-KLEINFELDER: Thank you. Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. Director Nakagawa, how are we tracking all of this? You know, I'm looking at Ordinance 23-95, $180 million. bond flow and then Ordinance 23-31, $127 million. Each of those has $100 million dedicated to Hilo Wastewater Treatment. This one that we have in front of us, $109 million for Hilo. There are a list of different projects —forgot. Page 27 FC-45 October 1, 2024 The first of the month we have our emergency tests. Glad to know that the sirens are working. Okay. Director, there's a number of other projects that I see here that were also included on the other bond ordinances; ADA projects, Aupuni Sewer, Animal Control, miscellaneous repair and maintenance, public safety. How are you tracking the appropriations across multiple bonds and how do we know the status of these projects? I love funding stuff, but you know what I love better, getting it done. MS. NAKAGAWA: Council Member Kierkiewicz, that's a great questions and there are a multitude of oversight on these projects and different bond ordinance. And I just want to take a second as you mentioned, we have come before Council and appreciate the support over the last several years, about every year for about $100 million in bond authorization. And as Director Pause mentioned, some of the other critical projects have been on these bond ordinances and so that is partially the reason why some of those are still yet to be completed and some of the more immediate needs are on this one. But the list that you're talking about, so also, (Ordinance) 22-41, you go back another $100 million for wastewater. With the last three there were about $300 million for wastewater and wastewater related facilities. So, some of that was used for design; some of that was used when we recently executed a contract for Pahala collections. So, that dipped into that $300 million. So, this additional $109 million is needed for the Hilo Wastewater Treatment project that we just heard about, but also to continue with design of the other commitments that we have. So, there are Chris in Treasury, sitting beside me. He has some oversight overlooking at all of the bond ordinances and what has been issued. Our Accounts Division also tracks anytime there is an allotment request. So, if there's the bond authorization, the Department will come through and say, now our project is ready, so they submit an allotment request. So, if there's a project on the list, they'll submit that, it will come to the Finance Department, we'll go ahead and look at our spreadsheets and look at what has been already committed or allotted and we'll go ahead and approve the allotment to carefully track what we have used from these different bond ordinances. So, between our Accounts Division, the Departments themselves, our Treasury Division, and continuous oversight, that is how it's tracked. Now, I will admit it's not in the easiest, prettiest report format for us to distribute. They are tracked in the various areas in our financial system and in spreadsheets across the department for our County. MS. KIERKIEWICZ: It's helpful to know that we're tracking it internally. I guess, just as members of the public, right, taxpayers are footing the bill on all of these really critical projects. I think folks just want to know how much it's actually going to take and when they can expect the work to get done, and if there are any delays or challenges along the way, finding a way for that to be Page 28 FC-45 October 1, 2024 communicated by the departments, but also information being available for them to access online. And I'm hoping that the financial software that you've invested in will be able to help with that, that storytelling piece that's so important. MS. NAKAGAWA: And I think we need to continue to look at other tools. At our recent CIP meeting, Director Pause shared what they use as a public facing tool to see project status, and I think we can look at different options and maybe making that more Countywide and comprehensive as we look at all of our CIP projects and just better display information on where we're at. MS. KIERKIEWICZ: I think at the end of the day, we just want to see that our money is being well spent and there is return on investment and improvement to quality of life. Thank you. MS. NAKAGAWA: Thank you. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay. Director Nakagawa, what is the total of money we've allotted —let's start actually, the previous question. What is our total debt service budget for this year? MS. NAKAGAWA: So, we have $62 million in the General Fund. CHR. KANEALI`I-KLEINFELDER: That's for current fiscal year? MS. NAKAGAWA: Fiscal year 2024-2025. CHR. KANEALI`I-KLEINFELDER: Okay. And then for next year, projected? MS. NAKAGAWA: So, I'm looking at our projections, with the authorization of the $150 million, we look to increase our debt service between $7 million and $10 million. CHR. KANEALI`I-KLEINFELDER: Okay. So, that's $70 million. MS. NAKAGAWA: I would like to mention that in our budget kickoff, because we're already starting budget kickoff. We have factored in this estimate with this bond authorization. CHR. KANEALI`I-KLEINFELDER: Okay. Good. Thank you. The projects listed, sorry, you said Parks and Rec was available? MS. NAKAGAWA: Director Messina is in Kona. CHR. KANEALI`I-KLEINFELDER: Okay. Director Messina, is that you? Page 29 FC-45 October 1, 2024 (Note: At this time, Parks and Recreation Director Maurice Messina came forward to address the members of the Committee.) MR. MESSINA: Good morning. Maurice Messina, Parks Director. CHR. KANEALI'l-KLEINFELDER: Thank you for being here today. Can you give a rundown of the projects you're hoping to address under the $16 million that's authorized in this bond? MR. MESSINA: Yes. So, the first set of projects that we're looking at, we're pretty much near the end of our obligations with our ADA projects. We have one more project to start and that's Miloli'i Beach Park. We're finishing up Hilo maintenance base yard, and we've got Pahala swimming pool that's also being worked on. In fact, out staff is out there meeting today with the geotechnical engineers for that. The other ADA projects will include Waimea Park playground, Ho'oko Park playground; that's in Walkoloa, and Greenwell Park, Yano, Hall playground, and Captain Cook. And we feel that with this last bond authorization, that should pretty much put us over the hump. It's been years and years and years, you know, waiting to get to this point, and with just having the one more obligated project besides the playgrounds, we're pretty much near the end of this. The other projects are current. Park project Waidkea Uka, we're got the community center is going up now. We've got Kea'au Community Center, we want to do the design on that. Kea'au Community Center is on its last legs, and we want to try to get ahead of it a little bit by completing the design. That also goes down as a senior center and we just don't want to have to close the building without being ready to go shovel ready, like the Finance Director was talking about. Also, looking —we're going to be designing the bathrooms at Old Airport, Kallua Park, Waiohinu bathroom, it's currently out of commission in Nd'dlehu. We've got the Civic renovation project that we need to show up a little bit more to make sure that we can complete that project between the two Merrie Monarch events starting next year. And the last one is the Honoka'a swimming pool repairs. We were able to shore up the pump room and it gave us about a five-year extension on the shelf life there and so, we need to go ahead and finish the design on that. So, this is pretty much the biggest part of this, for us, is going to be finishing up the ADA projects. CHR. KANEALI'l-KLEINFELDER: That's amazing. At first glance, I was trying to figure out where these projects were going to occur and a lot of them are rehabilitation. A lot of our facilities are based in Hilo. So, it looked very Hilo centric but as I listened to the discussion today, I'm hearing that we are looking to improve all different parts of our island, and I think it's wonderful, I mean, honestly. Thank you for that overview, Director. I appreciate it. Page 30 FC-45 October 1, 2024 MR. MESSINA: You're welcome. We have about 130 active projects island - wide right now, and they hit every district. We are doing our best to make sure, you know, we've got equitable distribution of all of our projects throughout the island. CHR. KANEALI`I-KLEINFELDER: Beautiful. Okay. Back to Director Nakagawa. So, you mentioned this, I think we were in executive session but what is our current percentage as far as our debt? MS. NAKAGAWA: We're at 14.5 percent of authorized but unissued and our debt service is eight percent, issued debt. So, eight percent of our expenditures. CHR KANEALI`I-KLEINFELDER: And then of the 14.5 percent, I think we talked about 15 percent being our limit. So, we're pretty close. But again, we're looking at eight percent being actually authorized, correct? MS. NAKAGAWA: Eight percent of issued debt, that's correct. CHR. KANEALI`I-KLEINFELDER: Okay. And you're comfortable with that level? MS. NAKAGAWA: We are comfortable. As mentioned, we also continue to pay our debt down each year. CHR. KANEALI`I-KLEINFELDER: Okay. And then, looking forward a year or two at least, hard to know the future but, at our debt service being about $70 million projected, are we comfortable with that moving forward? And I know you cannot tell the future. But just, you know, looking at what's happening here, your thoughts? MS. NAKAGAWA: Right. So, there are, of course, things that could change as we get to that point. But we are already looking at projections for the next bond authorization and we're still within our limits there, as of today, with what we know, with the budget we have as status quo. Those are the early projections we've made for just even the next authorization. CHR. KANEALI`I-KLEINFELDER: Okay. I mean, going back to the previous bill for the Hilo Wastewater Treatment Facility, what is our current amount of funds we have under the bonds, like if we spoke about three different bonds we've just spoken to. Per Council Member Kierkiewicz question, what is our total amount we've allotted for the project? MS. NAKAGAWA: So, allotted is different. But under the authorized bonds, as we've discussed, the previous three had $100 million in authorization for wastewater. So, $300 million. This one will include $109 million in authorization. So, we're at $409 million. Page 31 FC-45 October 1, 2024 CHR. KANEALI'l-KLEINFELDER: So, $409 million. Okay. And are we expecting more bonds, or any more funding needed for these projects? MS. NAKAGAWA: So, we will continue to come back as we needed. We're expecting, as we have been over the last several years, to come back about once a year, maybe sooner if needed. CHR. KANEALI'l-KLEINFELDER: Okay. How concerned are you about that 15 percent cap, if I'm looking a year, two, three ahead? Maybe cap is not the right word, but how concerned are you about that number? MS. NAKAGAWA: So, the concern is as we're all concerned about, and that is the mounting number dollar amount of projects that we need to invest in. So, in looking at that, yes, there is a concern. But our effort will be placed on looking at the timing of these and doing what's right within our limits. So, as we move forward, we'll continue to talk about what our revenue stream can afford, and we'll bring those discussions forward with those prioritizations of projects. But I think I we're all concerned with the amount of the dollar amount of projects that we have in front of us. CHR. KANEALI'l-KLEINFELDER: I agree. I think lastly, and you touched on this a little bit, the Planning Department is the driver of our CIP projects. That really is their kuleana. It's outlined in our Charter and our Code, and Deanna (Sako) and I have had this discussion on the Council floor, and she's educated me many times. So, I think it is incredibly important that as we start to look at us hitting this 15 percent arena that as we look at projects and we're balancing equity for our community, really highlighting the need for the Planning Department to find a way of providing the Council and the community what projects we're moving forward with and why, and I've asked for that in this previous budget cycle and there really was nothing from the department. So, I cannot highlight that enough so thank you for mentioning that in our discussion today. MS. NAKAGAWA: You're welcome. CHR. KANEALI'l-KLEINFELDER: Okay. Thank you very much for your time today. Thank you for having your staff here. And question from the Council? Council Member Lee Loy. MS. LEE LOY: Thank you, Chair. I think all of our hands and feet are a little sweaty up here and, you know, I share this all the time. I've been around this work for a long time and this by far has my hands and feet really sweaty. I am absolutely in support of this. There are so many projects that we have kicked the can down the road, and this is what it feels like to make right all of those business decisions that were made in the past, to make it right. Page 32 FC-45 October 1, 2024 I do have a question, and I apologize if my colleagues may have asked this. But in the middle of this conversation, a little bit of storytelling, I had to step out and take a call because my car is in for repair, and it's going to cost a lot, so I had to tell my kids, sorry, no Disneyland this year for Christmas. So, it made me think about what is that off -ramp or exit strategy? Like, I'm hearing loud and clear, we're going to put in program management; we have fiscal oversight; we have a number of people keeping the pulse on our projects. What if we just don't collect enough revenue? What is that exit strategy, because I'm looking at these projects and they're all very needed? How do we walk back some of the projects that are on these bond authorizations so that we can, "Sorry, kids. We're not going to Disneyland this Christmas." Is there a process for that and what does that look like? Because I'm guessing you guys will come and tell the Council, but how is that business decision made? Again, in total support of this but I know every single one of us is examining this to keep it on time, on budget, and deliver projects that are just so absolutely needed in our community. I'm just asking that off question about what happens if it's just out of control and we've got to walk something back? MS. NAKAGAWA: So, thank you, Council Member. I think the key is really continuous and constant oversight and having these discussions. You know, I know we just discussed the CIP oversight with Planning, and I think, you know, we are one County with one goal to make sure that we serve our community the best we can. And so, one of those areas is looking at and we appreciate the support of a CIP Manager, and that would be in the Finance Department. But we were asking the questions about, just as you discussed, how do we keep a better pulse on these contracts collectively, not just within DPW (Department of Public Works) or within Planning, but from a County -wide perspective and we have really high hopes for this position to just keep inching us forward in having that oversight. And those will sort of answer, get us in a better place to answer those questions, to provide the information necessary to potentially make those hard decisions of things we'll need to stop or be deferred to another time. So, that's the plan on that. MS. LEE LOY: Thank you. I know that was one of the key investments we made with this last budget cycle. And maybe there's a way, and we've heard it, needs assessment, right, of all these projects, and a decision matrix on how we are picking them. But I also think there's got to be a way to bump that or backstop that against key components of our Charter, and there's five things; public health and safety, waste; both solid and water, and paving our roads, and maybe we can integrate some of that into our decision making, especially our CIP projects. And I've been a big fan of dump them all out and let's reassess them. Thank you for helping me walk out the exit strategy or the exit ramp just in case. In support. I look forward to all these new things coming online to help us keep these projects on time and on budget. I yield. Page 33 FC-45 October 1, 2024 CHR. KANEALI`l-KLEINFELDER: Thank you. Any further discussion? Okay. Just a, you know, last note. Thank you to the administration for taking these on. These are big heavy projects, and it takes a lot of courage to actually push for this level of debt but also to look down the line and look at what hasn't been done and actually take a step towards doing it. So, well done. Thank you. Okay. We have the motion on the floor to forward Bill 215 to the Council with a favorable recommendation. Thank you. All in favor? Vote on Bill 215: The motion to recommend passage of Bill 215 on (Approved) first reading was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Kagiwada, Kierkiewicz, Lee Loy, Villegas, and Chair Kaneali`i-Kleinfelder — 7. Noes: None. Absent: Committee Member Inaba - 1. Excused: Committee Member Kimball — 1. ADJOURN- MENT: Approved: Mr. Matt Finance ( MK1tk CHR. KANEALI`I-KLEINFELDER: That does bring us to the end of our agenda. There being no further business on our agenda today, Chair Kaneali`i-Kleinfelder adjourned the meeting at 12:09 p.m. Thank you very much. i `i-Kleinfelder, � (Date) Page 34