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HomeMy WebLinkAboutMIN LAAC 2024/11/19 (2022-2024)Committee on Legislative Approvals and Acquisitions 3511 Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawaii November 19, 2024 CALL TO The regular meeting of the Committee on Legislative Approvals and Acquisitions ORDER: was called to order at 1:01 p.m., in the Council Chambers, Kailua-Kona, by Mr. Holeka Goro Inaba, Chair. ROLL CALL: Present: Mr. Holeka Goro Inaba, Chair Ms. Michelle M. Galimba, Vice Chair Ms. Cindy Evans, Member Ms. Jenn Kagiwada, Member (came in later, via videoconference from Hilo) Mr. Matt Kaneali`i-Kleinfelder, Member (came in later) Ms. Ashley L. Kierkiewicz, Member (came in later, via videoconference from Hilo) Ms. Heather L. Kimball, 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: The following individuals registered to speak and came forward when called by the Chair: Lou Putzel: Comm. 1149, in support. (representing Friends of Amy B.H. Greenwell Ethnobotanical Gardens) COMMUNI- The Chair directed the Committee to proceed to the next order of Business, CATIONS: Communications. LAAC-35 November 19, 2024 Comm. 1149: APPLICATIONS FOR 2024 STEWARDSHIP GRANTS FOR COUNTY LANDS ACQUIRED THROUGH THE PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION FUND From Finance Director Diane Nakagawa, dated October 31, 2024, presenting 11 favorable recommendations for qualified nonprofit organizations requesting funding to maintain and provide stewardship for the following parcels acquired through the Public Access, Open Space, and Natural Resources Preservation Fund: • Kohanaiki `Ohara (Malama O`oma Stewardship Project) Recommended award: $41,400 • P6haha I Ka Lani (Koa`ekea) Recommended award: $114,900 • Hawai`i Environmental Restoration (Ho`ohui No Wai`ele) Recommended award: $23,587 • Hawai`i Environmental Restoration (Digitized Resource Database — Development Phase) Recommended award: $6,510 • Hawai`i Farmers Union — Kohala Chapter (Hawi Banyan Trees Maintenance & Community Planning) Recommended award: $56,900 • Ho`omalu Ka`u (Kahua Olohu Stewardship Program) Recommended award: $25,500 • Friends of Amy BH Greenwell Ethnobotanical Garden (Na mala O Kona — Maintenance & Education) Recommended award: $223,200 • Ala Kahakai Trail Association (Ka`u Heritage Preserve Ranger Program) Recommended award: $132,500 • Ala Kahakai Trail Association (Kaunamano Community Resource Management Plan) Recommended award: $80,000 • Ala Kahakai Trail Association (Kiolaka`a Community Resource Management Plan) Recommended award: $173,500 • Malama O Puna (Maintenance and Preservation Planning for the Wai`ele) Recommended award: $398,569 Motion to Close File: Ms. Galimba moved to close file on Comm. 1149. Seconded by Ms. Kimball. CHR. INABA: We have our Finance Department joining us today. I believe our Deputy Director Aaron Brown will be giving us a presentation. Deputy Director and our Property Manager Mr. Hamana Ventura. Page 2 LAAC-35 November 19, 2024 (Note: At this time, Finance Deputy Director Aaron Brown and Property Manager Hamana Ventura came forward to address the members of the Committee.) MR. BROWN: Good afternoon, Chair, Council Members. My name is Aaron Brown from the Finance Department. MR. VENTURA: Aloha. Hamana Ventura, Property Manager. MR. BROWN: Thank you for the time today. So before you, Communication 1149 is a recommendation from the Finance Director to the Council on our Fiscal Year 2025 PONC (Public Access, Open Space, and Natural Resources Preservation) Maintenance Application Awards. So after going through a review process, this is what Finance is presenting to the Council for your consideration and review on awarding contracts. Before we get into any specific questions on the fiscal year or the 25 contracts, I kind of want to back up and talk about some of the work that we're trying to do over the past year with the PONC Maintenance Program itself. I really want to bid a big mahalo to our Property Management staff, Hamana, Iva (Braman). Iva's been doing a huge lift for us. Jean (Campbell) has been very helpful from Corporation Counsel. And when we came in about a year ago the program was a little bit up in flux. I think it had gone through some transition. It went from Parks and Recreation; it came over to Finance. We were looking at the program holistically as a whole. During COVID (Coronavirus Disease) there was some stop to things that were going on and so we want to take a step back and look at the program in its entirety and kind of figure out how best to move forward. We'll be the first to admit that we could've been better with communicating with some of the stewards and applicants. We could've been a little better with reviewing some of the older contracts. But we wanted to make sure we came in and found a way and path forward, so we wanted to kind of share a little bit about that today. We had a really good PONC Commission meeting yesterday and I want to share with you guys. We were here for most of the day yesterday and we presented our plan and kind of how we want to go forward, and I think they were very positive. They're very supportive of us. Yesterday, we actually went through our first review of the 2025 contracts. So, what's going to happen now is, we go through the Charter, and we go through the Code, and we try to put together a plan and more tools that allows the PONC Maintenance Commission to do their review of these applicants for a very important program, PONC itself, and now having the maintenance program in our Charter, and that's kind of where we wanted to educate our Commission on why this program differs from a lot of the grant programs within the County. There are a lot of areas that we want to keep consistent. We want to create consistency, Page 3 LAAC-35 November 19, 2024 transparency with like the Waiwai Grant Program. And so, you'll see some of that and we'll talk a little bit about that and how we present things for the Commission of how they score and review applicants. We want to have things consistent, right. Some of these applicants who come in and want to apply for grant maintenance funds, they may also apply for Waiwai grant funds. So, if you have two totally different processes it's very confusing for them. And so, we actually used some of the things that the Waiwai program has to help us there. We're a little bit behind in contracts and so what we're really trying to do is to get us caught up. Right now we're on a reimbursement basis. So, what happens is there's these PONC maintenance funds that, you know, anything that's awarded to our stewards; they go out, they do the work, they get receipts, then they submit it to us; and then we check it. Does it align with their original contract? If it does, then we can reimburse them for the good work they're doing. I think what the program is meant to be done is we bring it to current. When someone applies for a program for PONC maintenance, it gets reviewed by Finance; and this is how it's going to work now is we're going to do a prereview. So, we're going to go over a lot of the things that you guys were talking about with some of the other grant programs, like are they 501(c)(3) confirmed; are they paying their taxes; do they have bylaws? A lot of things that are in the Code that you guys see, and you guys have been working on currently will do that initial review, we'll also make sure, right. Out of all the grant programs in the County, this one is unique in that it lives in the Charter. There's 17 very specific things that this program and these funds can be used for. So, there's not a lot of extra flexibility and consideration that we can give. We look at those 17 things and it's pretty cut and dry. In the Charter, what these applicants are proposing to do is it allowed; is it allowable. And so, what we do is we do that prereview; we go through each grant application. We'll kind of point out comments and things that we provide to the Commission so that they can help ask these applicants better questions, have good discussion; you know, you say you're doing this on this property, how does that align with why we even bought the property? I think that's a major thing that we talked about with the Commission is making sure these programs that we are, you know, that these applicants are putting through, does it even align with why this PONC property was purchased in the first place. I think that's very key. And because, you know, the program is new we're still figuring out our processes. What continues to come up is program management or having a management plan for each specific property, and they're all very different. Where we want to get to is, and what we're finding is any time a new property is purchased, what we want to get to is the County is going to from the start do a lot of that frontend work where we're going to try to get a management plan for that property. Does it need and arc (archaeological) study; does it need flora or fauna; is there other things Page 4 LAAC-35 November 19, 2024 that is SMA (Special Management Area) required? We want to go and initiate that so that management plan can then live with that property and as people want to come and steward it, they can have those as tools for them to help them build their program. We're not quite there yet so, what's happening is a lot of these stewards, and a lot of them are doing good work on these properties already, they want to come in and they have all these great ideas for their own management plan. They differ in each property. And so, some of the things we're working through with them is their plan that they're coming up with, is that what is best for the property. The County does not have the expertise all the time to go ahead and spearhead these management plans, but what we're going to do is try to facilitate the creation of these; we're going to work with these stewards; work with people who are from the area, and it's going to be a collaborative process to get these management plans in place because again, we want the stewardship going on in those properties to align with why we bought the property in the first place. So, that was a lot of words kind of discussing, you know, kind of the high-level meetings we've been having all year. Again, I want to reiterate we had a very good meeting with our Commission. We wanted to talk about the expectations on what Finance is going to do; the expectations on what the Commission does because they do very important work as well as the stewards. And so, what we have in front of you guys in this communication is the recommendations that Finance has put together for awarding the newest round for the 2024's PONC Maintenance Stewardship Grants. Again, like I talked about, eventually, we want to get to a place where the County is kind of the lead facilitator in coming up with these management plans because the plans need to live with the properties, but we're working with them. You're going to see in the communication that as we've gone through these applications, there are some funding, a lot of the funding, most of them, were fully funded. I think we can't stress enough how appreciative we are of these stewards because to be realistic, County doesn't have the resources or the capacity to take care of these lands. So, having people who are from that place, who understand that place, are connected with that `aina there, maintaining these important properties is a great thing. We're very appreciative of that. You're going to see in here most of them are fully funded. Some of them we weren't able to fund because of, you know, being that —and this is something that we stressed, and we talked with the Commission yesterday on is when you have the Charter listing 17 very specific ways you can use the PONC maintenance funds, admin fees and overhead is not one of them. And so, right now, currently, that is not an allowable expense for this program. So, there are other grant programs within the County that do allow for that and you guys, you know, just passed an ordinance allowing for up to ten percent for overhead and admin fees. Page 5 LAAC-35 November 19, 2024 But the way that we —and we have legal opinions on that as well, the way the Charter is being interpreted is that is not an allowable expense at this time. So, I think just being very front with that, making sure the stewards know, our Commission knows, we know, the Council knows, is important because we understand that nonprofits, you know, it's hard to get resources and, you know, there has to be a way to compensate them for the good work that they do. Currently, that's not allowed, but there are other things that are and you're going to go through the list and see them. A couple small things like, you know, where the PONC Maintenance Funds, we cannot use that to pay the general liability expense for the overall nonprofit per se, things like that. So, you see some of those in there. I do want to share that we were able to work with two applicants and they're trying to get ahead of the game, and they want to be able to put a management plan together. So, we're able to work with Malama O Puna and another nonprofit. They're on the same property. And what we're going to do is instead of funding their applications for the creation of this management plan, the County's going to go ahead and we're actually a day or two away from executing a contract in doing both an arc study and we're combining a lidar study with it because it. just makes sense, do all the studies on the property upfront and then that way this applicant, you know, these two stewards of the property, they'll know why the important arc study; is there cultural things that they need to be aware of? So, before they do the work, and then how they do their work aligns with those plans. And I think that's where we're trying to get to. So, just wanted to share that with you. We are here for specific questions. Hamana is here. I can't thank Eva enough for all the work she's put in to get our program, trying to get current. I guess one more thing before I forget. So, what's going to happen is, we're going to have both the 2024 and 2025 contracts moving forward. They're only going to be six months apart. So, these are going the 2024s that we would love —tomorrow the resolutions are going to come before you and if you approve them, then we have the authorization to go ahead and execute contracts with these nonprofits as their programs allow. Yesterday was the first review of the 2025s. So, what's going to happen is we're shooting to get those executed by July 1. So, for this first round to get us caught up, there are actually going be two sets of different contracts that Eva and Hamana is going to be tracking so it's going to be a little tricky, but that's the only way that, you know, and we want to be more responsive for the applicants as well. We don't want them waiting. We want to be able to execute these contracts, get that funding into the community, into the properties. So, if that is confusing, want to give you a heads up on that. But once those are finished and we get to the round of the fiscal year 2026 contracts, we will be current. We're considering different things including instead of being paid on a reimbursement basis we would like to fund some of the —and we're still looking at the Page 6 LAAC-35 November 19, 2024 percentages but it's possible we could align it with kind of the Waiwai Program. They may get a big chunk initially, right? A lot of these nonprofits, maybe they need that initial money to kind of get them going, get their programs started so we're looking at different ways to do that initially and then we'll be able to get them more money as they progress reports or milestones or things like that. So, that's also being considered. But yeah, so we're here for questions if you guys have anything. Sorry for the long explanation. CHR. INABA: Thank you, Deputy Director. Again, just wanting to remind the body that tomorrow's resolutions are the actual funding mechanisms. Today is just the communication that shares an overview of what those awards are. And again, this is for the 2024 awards. So with that, Council Member Evans. MS. EVANS: Yes. Hi. So, thank you for this work. This is a lot of work. And my question has to do with when the PONC gets approved to go out and buy a parcel, normally in that there is a comment about who is going to steward the land. And so, have you found that the applicant for the PONC property that says who they expect to have stewarded it is now the PONC stewardship program, did they align? Are they usually always the same as what was originally proposed in the PONC or do you see other groups once it gets under the PONC program and the County has it other groups step up and go, wow, now we can steward it? I was just curious. MR. VENTURA: That's a really good question, and there are more than one answer because we've acquired property that we have no stewardships aligned. Sometimes these properties kind of fall into your lap. They went, no, no, no, and they come up. Other property stewards have been working those lands for years and years prior to acquisition and so there's a general sense that these stewards are the ones who will continue to maintain these properties. And yes, there have been properties where once acquired that more than one steward has offered to take on a portion of the maintenance. So, there is answers and different situations, all of them with positive outcomes. MS. EVANS: And the reason I say this is I was under the impression, right or wrong, that it really helps you with your scoring if you have a piece of property you want to preserve and there is a group that is talking about wanting to be the steward for it and maybe that's under the false impression. MR. VENTURA: At the end of the day, the scoring comes down to it's commission driven. So, maybe that's more so a question for our commission. MS. EVANS: Okay. Alright. Thank you. MR. VENTURA: Mahalo. Page 7 LAAC-35 November 19, 2024 MR. BROWN: So, if you don't mind, I want to —I mean, that's a very good point you brought up, Council Member Evans. I think as we design this new process, we wanted to think for this program in the long term and we're really hoping that this program grows and expands. And eventually we may get to the point where you will have multiple nonprofits that are vying to maintain the same PONC property, right? So, how do we come up with a system that allows, that's fair, that's transparent, in figuring out how we can help the commission make that recommendation, right, because they make a recommendation to the Finance Director and some of the things they look at is can these nonprofits that apply, can they actually execute what they're saying they're trying to execute? So, there's a new scoring rubric that we've actually just deployed to the commission, and they had their first kind of look at it yesterday, and we had lots of good discussion. They gave us lots of good feedback. But we talked about quantifying different things while they look at the application so they can come up with a scoring metric. Now, that scoring metric, there's no cutoff saying if an applicant doesn't meet a certain number of points, they're not going to be considered. But it's a way where they can quantify, look across different applicants, and help applicants evaluate; is there an area that I need to get better in in my application, right? So, as the PONC properties grow —and unfortunately, you will see nonprofits come and go. And so, when we talk about these management plans and why we want the plans to stay with a singular property, the nonprofits don't own those plans, right. Those plans are for the land itself, the PONC property, because you will get to the point where you don't want to have a nonprofit come in, they have this plan, and then if they dissolve, that plan goes away, right. That work goes away. So, that's where we're kind of pushing the program to go. I know it's hard for some of the stewards because they have such good intention there and they feel so connected to that property and part of it is if you have a good plan, please share it with us. That plan should stay with the property. So, that's kind of what we're working with them on right now. MS. EVANS: Yeah. And just a comment. The experience with Legacy Lands, which is state. The state buys Legacy Lands also. My experience was it was an attempt to talk to the lineal descents of the ahupua`a and see if they wanted to steward the land before maybe there was a more of a proactive effort to get a nonprofit or another group to stand up and take care of the land. So, I think there was that effort to do the lineal descents first. I don't know, have you? MR. BROWN: Yes. And actually the plan that we're working with Malama O Puna on is a collaborative process. When you get those lineal descendants, you have the consultant, you have the County,, you have the applicant, the stewardship and it's got to be a kakou thing because not one of those alone is going to know what's best for that property. I think you have to get as much information as you can. You've got to reach out to the people of that place. You know, you've got to have a professional who can write a professional plan, come together. Page 8 LAAC-35 November 19, 2024 And actually, in the contract that we're working with Malama O Puna, those are conditions in the contract itself, that they work with those lineal descendants to gather information, to consult with them as they put their plan together. So, that's something that we're going to continue to do. And every property is going to be different. Some you have, like Hamana mentioned, where you have people of that, you know, maybe lineal descendants or a nonprofit already been stewarding and others there may not be at all. So, where do we start there? You know, we're going to look at every situation differently, every property differently. But to get that kind of feedback in our process is extremely important for us and we'll continue to do that. MR. VENTURA: And to your point, I mean, we've worked with Legacy Land since I've been here, 2014, David Pan, and we've relied on David for his expertise and all of his insights. And then, there's stringent standards as far as reporting and investigating, so being able to go out on sites with Legacy Land Commission and see how they view these parcels especially when we're going in for leverage funds, it's helped our evaluation process as well. So, we take it as part of the ongoing learning experience with this program and as Aaron says, it's carrying into stewardship as well because Legacy's just started implementing stewardship, which they haven't had all these years. And at least this program, we had the acquisition side, stewardship came on board. Legacy is a little bit different. It's been around for a while and only now after all this time they're starting to add a maintenance component to it. So, in talking with David and staff it's helped us to get a better clarity on where we want to be as a program. It's helped a lot. MS. EVANS: Thank you. I really appreciate the comments and the work you're doing. It sounds like you love what you do. Thank you. I yield. MR. VENTURA: Mahalo. CHR. INABA: Thank you, Council Member Evans. Heading over to Hilo, Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair Inaba. Mahalo nui, Deputy Director Brown and Mr. Ventura for all of your really hard work to get us to this point. I appreciate you explaining to us the constraints that you face in being flexible with a program because everything is, you know, spelled out quite clearly and explicitly in the Charter. But your commitment to always finding a way to support our nonprofits is, you know, truly commendable. Fully supportive of the ideas in having the stewardship plans kind of built out and attached to each property because folks, you know, come and go. And I do support your idea, Deputy Director, of having a list of things that the County will take on, like the archaeological studies, rather than tasking this to the steward. I think that there Page 9 LAAC-35 November 19, 2024 are just some bottom, you know, baseline things that the County should be doing at the onset to make stewardship a lot easier. One of the questions I had was regarding the funding. I love that you're exploring going with, you know, providing a tranche of money at the onset for a nonprofit because a lot of them find it difficult to operate on a reimbursement basis. Does the Charter allow for us to entertain multiyear agreements? MR. BROWN: Thank you for the question, Council Member. I believe it does. I mean I don't want to, and Judge Strance, please correct me if I'm over speaking. And I hesitate because this is a topic that we've talked about quite a bit internally and I think that is something we want to consider in the future for sure. I think every property is different and every program is going to be different, and sometimes an applicant may come with a program that requires more than one year to complete whatever their mission is or objectives are. We're not quite there yet. I think we want to get current with the program. We want to make sure we're executing these contracts, getting the money out to these stewards. So, we are continuing with just annual contracts at this point and, you know, we will be flexible. If someone finishes half of their work and they want to come in and submit an application, of course we will consider that and whatever they're doing. You know, as long as we're getting progress reports as required by the Charter and they're doing a lot of the things that they need to do, we'll definitely work with them. But to answer your question, at this time, we're not looking at the multiyear but that is definitely something we can do into the future, and if the Charter allows it, I believe it does. And Judge Strance will correct me if I'm misspeaking. MS. KIERKIEWICZ: Okay. Great. Thank you. Glad that it is on your mind and something to be considered. I'm only advocating for our nonprofits who have to work really hard to find different funding streams to support their work. And so, if there's one less grant application to do, I'm going to be, you know, supportive of that. You know, I noticed that the grant awards really range. Some of the work is, you know, consistent throughout and I wondered if there was any thought to creating some kind of formula that the County, you know, have the nonprofits consult when they're building their budget so that there's kind of a standard amount that being offered for the various tasks that stewards are taking on. MR. BROWN: I think that's something we could consider. I think what were, finding is based that all these programs are so different that you could have two different applicants, which are basically on paper, when they break down their expenses for us, saying they're doing the same thing but there's definitely a wide range in what the expenses come out to. So, we've been hesitant to kind of push a certain dollar amount for something. We want them to go through their process Page '10 LAAC-35 November 19, 2024 and look at their own expenses and then present it to us and explain to us why it costs so much, and then we'll work with them. As long as it's allowable, the Charter allows, we're definitely open to having more conversation about that. But we haven't done more of a streamline set sort of expense breakdown for tasks.yet. MS. KIERKIEWICZ: Okay. That's helpful. Thank you. I noticed that one of the applicants was not awarded any funding and provide justification for this. There wasn't a follow-up with requested information provided to Finance. You know, just kind of reflecting on your time working with these various nonprofit stewards, are there ways in which we can support building capacity of our local nonprofits to articulate their activities and build a reasonable budget? I just want to make sure that we are providing our stewards with the tools so that they can do what they do best, which is take care of `aina. MR. BROWN: Great point, Council Member Kierkiewicz. And I think this is something that we want to look into more. And actually this, the applicant you're referring to came in front of the Commission yesterday and talked about, you know, their process and kind of their challenges and I think their goal is to look at an entire area with properties that are, yes, one is POND, but some of them are, you know, actually County, some is state. And I think what they're looking at is a big picture plan, is what they need for the entire area. And so, for this specific one we instructed the Commission yesterday that these PONC maintenance monies can only be used for the PONC property itself. We totally support a bigger plan on a bigger region, and I think that's important for understanding how all these lands fit together. But for this program itself, the PONC maintenance money can only be used on that PONC maintenance land. With that said, we'll be open to talk story on more resources or things that we could do to support these applicants. I think we're very careful where we're not going to write the applications for the applicants. I think we have to be very careful; we have to be fair to everyone. So, we're not quite doing that but if there's ways that we can support, I think having commission meetings early, having these applicants get feedback early, so they can go back and amend their application or be put in touch with people that can help with them, we're happy to do that. You know, we'll be open to suggestions. But I think we want to be supportive without crossing that line and providing too much for any one applicant when we wouldn't be able to do that for all of them. If that makes sense? MS. KIERKIEWICZ: It does. And I do appreciate the Commission for offering themselves up to each of the stewards to review applications and kind of coach them in developing their package. I thought that was, again, very generous of them. Thanks for keeping that top of mind. Page 11 LAAC-35 November 19, 2024 Lastly, I just want to note that I think it would be really interesting to bring all the stewards together for, you know, the PONC properties, but just `aina stewards in general around the island, maybe even across the state so that folks can share best practices. I always feel that there's room for improvement, the opportunity to grow and learn from others. And so, just want to put it out there for Finance, for PONC, to consider in the next year, to bringing all of, you know, these folks together to talk story, share best practices and hopefully take some of that learning and implement it on `aina that they are taking care of. MR. BROWN: Definitely open to talking story with that. And I know Hamana does a good job of communicating with all of our stewards. And I think having an opportunity to sit down with all of them or as many of them as we can at one time, we can help further communicate, you know, kind of the process that we want to, where we want to take this program. And I think that would be beneficial for everyone. So, we would be open to talking story more about that. MS. KIERKIEWICZ: Fantastic. Thank you so much. I yield. CHR. INABA: Thank you. Council Member Villegas. MS. VILLEGAS: Yes. Thanks so much for being here. We've come a long way with this program in the last few years. From nonprofits going years without getting the funding but they're expected to provide reporting in order to get more funding that never came. So we were upside down for quite a while. So, thank you. I mean, this transition from Parks and Rec and now into Finance, and it looks like you guys, and it sounds like you guys are really digging deep and looking for broader solutions and alignment with other organizations that are experts in this field. I'm really excited for how far we've come and for the potential and the possibility of these properties. I think we've also seen, Hamana, an increase in the number of nonprofits and cultural and community organizations who are stepping up because the education is out there. And if I remember correctly, there is a cap, you know, a certain portion of property taxes every year go into the, two percent, goes into the PONC for purchasing of the land and the maintenance fund is .5 percent? MR. VENTURA: .25 percent. MS. VILLEGAS: .25 percent. But once it gets to $3 million, it stops accumulating, correct? So I wondered where we were at and what the total — what this represents is a percentage of allocation, you know, because we don't want it to get to $3 million and then cap and then none of it get put out. And so, I'm excited to actually see some bigger numbers here from organizations. And so, I'm just wondering where we're at with those numbers. Page 12 LAAC-35 November 19, 2024 MR. VENTURA: Can we get back to you tomorrow? MS. VILLEGAS: You can totally get back to me tomorrow. No worries. I just know the public often wonders how this program works and what not. And so I think it's always good to put that out there that we want to get these monies into peoples hands because people know, taxes always keep getting charged. But this is where their tax dollars are going and to support the maintenance of these properties and the utilization, the revitalization, and the reconnection of this land to the people that are stewarding them. So, thank you. I'm in support of this. And I just, you know, we're farther along now than we've ever been on this project. So, thank you. I appreciate it. I yield. CHR. INABA: Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you, Chair. Thank you for the overview. I appreciate it. I did get a phone call from some of our PONC Commissioners, and the interest was we're awarding funds to stewards and stewardship projects. We're in process of reviewing what's coming for 2025 and the concern was, how do we make sure we're putting the funds to the right organizations for the right things in 2025, we don't even know what happened in 2024; if they have met their objectives, what we're funding. That was very valid. I had a good conversation with the Finance Department yesterday, sorry, Friday, that alleviated my concerns. But is that being addressed with the PONC Commission; as they review 2025, are they reviewing 2024 in parallel and understanding what needs to happen, what has happened, and what objectives have been met; and where you're at with that? MR. BROWN: Yeah. So, kind of what we talked about a little earlier is we're going to have two sets on contracts moving concurrently. We're hoping to get the 2024s, you know, assuming the resolutions are approved tomorrow, we'll being trying to execute contracts, and our goal is to get it out by the end of the year. So, we had a very aggressive timeline, but this was one that we felt was necessary to get this program back current where we want it to be. And so I think we've tried out best to work with the Commission. I think they feel pretty confident with our plan, and they've expressed that yesterday in, you know, getting the 2024s out and now they're working on the 2025s. So the 2024s will, once we execute those contracts, those will still be on a reimbursement basis. And so, I think it's working with our stewards to understand that they have to provide us receipts for the work that they've done, whether it's labor or anything that was approved as Council approved in their programs. If they supply us a receipt, we can cut them a check within a week or two at the most. But our due diligence is making sure that the monies are going toward PONC maintenance programs, right, or anything that functions. And so, we cannot just give them a blank check per se for work that we cannot confirm. Page 13 LAAC-35 November 19, 2024 Again, we want to get it to the point where we understand this is a hardship. We want to get it current where when they submit a proposal to us, we do our reviews, they are in compliance, the Commission recommends it, Council finally approves it, you know, we want to be able to get them a good chunk upfront so they can start their work, right. We're not there yet. I think it's pretty clear that as we go back and evaluate, what are we paying. for their 2024s? As long as it falls within their approved contract and what they had in their application, we can pay them no problem and we're happy to do so. The 2025s is what you're looking at right now, right, so we'll try to get those — excuse me, the Commission's looking at right now, and we'll have those to you hopefully May-ish, that way we can try to execute those contracts by July. MR. KANEALI`I-KLEINFELDER: Okay. Does the Commission have what we have so they can see who's where and who's what? MR. BROWN: Yes. So what you guys are seeing on the 2024s, they've already seen. They're already moving onto the 2025s. So, they have stuff that they're reviewing right now, you guys haven't seen yet because what they'll do is they'll deliberate, they're working with the nonprofits; they'll work with our property management staff, they'll put together their recommendations that'll come to you next for the 2025s. MR. KANEALI`I-KLEINFELDER: Okay. Thank you. There was a valid concern brought up by the Commission. MR. BROWN: For sure. MR. KANEALI`I-KLEINFELDER: And I appreciate that the Finance Department is working through that with them and getting them all the information, so we get good decision making. Appreciate it. MR. BROWN: 100 percent. And I think, you know, it is going to be a challenge, to be real with you, because we are going to have like we talked about those two sets of different contracts. So, as these nonprofits —and some of them might be the same nonprofit that has a contract in 2024 and hopefully one in 2025, too. So, they're going to have to, both Finance and the stewards, have to be very deliberate about making sure their expenses are tracked in the proper year on the right contract. So, it will be some work, but we're committed to do that and work with them to do that. MR. KANEALI`I-KLEINFELDER: Okay. And lastly, I appreciate where we are now because I was getting calls about four months ago from stewards saying we haven't gotten funding, when's it going to happen? And then the department said, probably December. It's November, so you're ahead of schedule. I mean, Page 14 LAAC-35 November. 19, 2024 almost. I mean, we're close. But I appreciate your energy in getting this done because they need the funding to get what they proposed this year to get done by this year, within the fiscal year. So, appreciate it. Thank you. MR. BROWN: Yeah, thank you. We want to mahalo them for their patience with us. We have been doing our best. We promise you guys that. We understand the frustration. And we ultimately want them to out there, you know, on the properties doing the good work that they do. So, we're committed to continue seeing this through. MR. KANEALI`I-KLEINFELDER: Thank you, Mr. Brown. Thank you, Hamana. CHR. INABA: Thank you, Mr. Kaneali`i-Kleinfelder. With that, just again, mahalo to you folks. We're all trying to get our grant programs working independently better and the goal is collectively better together as a County. You know, it was a request of mine with this administration that we would find some kind of central grant management system. We don't have it yet, but I'm hoping that is something that we can do with the incoming administration, ensuring proper use of our public funds and, you now, no double dipping across different grant programs. Also, want to just reaffirm, you know, in the same case of our Waiwai Program, we didn't fund some applications this year, and we didn't even allocate out all of the money via the Waiwai process. But I think as a County we're finding and being aware of what the rules and procedures should be, and now that we know for sure, we need to follow. So, mahalo to the nonprofit organizations for their understanding. And, you know, as we move forward, we'll continue to be as transparent and open as possible. So, I just want to kind of wrap up this discussion. You know, we had Housing come with a stew of resolutions, a resolution for grants, and I'm sorry. And I know these are kind of far behind but just want reassurance that all of the requirements of Section 2-1.37, I believe, will be complied with prior to the signing of any of these agreements. MR. BROWN: Yes. We want to give you that assurance, Council Member Inaba. They may not have been all at the front end before, but we're looking at our checklist, our scoring sheet, everything was done somewhere within that contract process. But now we're going to be frontloading a lot of that and getting it done on the front end. I mean, by rule we can't even execute a contract with these guys without having a lot of those things required in the Code that you're referring to. So, there are check and balances in place for that. But we're going to do a better job of getting in front of that, having the stewards know what's required of them upfront so that we're not, you know, 90 percent of the way through and then we have to go back to them and tell them, you know, we need something else. So, we're continually working on that and we're open to Page 15 LAAC-35 November 19, 2024 suggestions as well from you guys, from the Commission, or anyone else who can help us get better. So, thank you. CHR. INABA: Perfect. Thank you very much. If you're open to suggestions, just thinking ahead for next time we have these resolutions, perhaps we can do it in a similar fashion to Housing and other grants where we can have all grants in one resolution, just to streamline rather than having 13 different pieces of resolution. I know it's been a customary thing for us, but we are trying to be efficient as well as a Council. So, I'll throw that idea out there. MR. BROWN: I totally understand. I think, yes, like you said, it was customarily where the Council Member from that district would introduce it, but we are open to what the Council would suggest. So, if you guys want to do one resolution encompassing them all, then we're happy to support. CHR. INABA: Perfect. And yeah, I think we could do it by request of wherever the program is living at that time. Okay. With that, all those in favor of closing file on Communication 1149, please say "aye." Vote on Comm. 1149: The motion to close file on Comm. 1149 was carried by Filed the following voice vote: Ayes: Committee Members Evans, Galimba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Villegas, and Chair Inaba — 8. Noes: None. Absent: None. Excused: None. CHR. INABA: Moving on. Thank you again, Finance Department. Resolution 704-24, please. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Page 16 LAAC-35 November 19, 2024 Res. 704-24: AUTHORIZES THE EXTENSION OF THE PUBLIC SEWER FROM AN EXISTING SEWER LINE TERMINUS AT PUKIHAE BRIDGE'TO HAU LANE, WITHIN HAWAI`I BELT ROAD, TO SERVICE TAX MAP KEYS: 2-6-015:001 AND 002 AT AHUPUA`A OF WAINAKU, DISTRICT OF SOUTH HILO, ISLAND AND COUNTY OF HAWAI`I, STATE OF HAWAI`I The extension would service the Hawaiian Ola Brewing Corporation for its operations at 238 Belt Road in Hilo. Reference: Comm.1146 Intr. by: Mr. Inaba (B/R) Motion to Approve: Ms. Galimba moved to recommend adoption of Res. 704-24. Seconded by Ms. Kimball. CHR. INABA: We have Ms. Na`eha Breeland here today on behalf of Ola Brew, property owner who is requesting this extension. So, I invite you forward at this time and your representative, if you would like to just give us an overview of this request and then we will hear from Director Mansour of the Department of Environmental Management (DEM) thereafter. And if you could just introduce yourself for the record. Mahalo. (Note: At this time, Ola Brew President and Co -Founder Na`ehalani Breeland and Thomas Yeh, ESQ came forward to address the members of the Committee.) MS. BREELAND: Aloha, everyone. My name is Na`ehalani Breeland. I'm the President and Co -Founder of Ola,Brew, our Hawaiian Ola Brewing Corporation. The mission of our company is to increase the ad demand and create a large ag economy here in Hawaii and we do that by sourcing as many local ingredients as we possibly can, adding them into our beverages and then selling them to our consumers. For us, it's very important that we are leaving, whether it's `aina or community better than we found it. And so, we do that again with our farmers, we do it with the `aina that we are farming right now, using restorative practices and organic practices, and then the extension of the sewer line would actually be the exact same thing, right, or in the spirit of that. So, we are asking to extend the sewer line up to Hao Lane. It's 2,500 feet up to Hao Lane from where it's at right now. And not only will that help to serve the Wainaku distillery that we are currently renovating, but it will allow for the Wainaku and Kaiwiki residents to eventually tie into that sewer line. And I know that the Hawaii Act 125 has been big on everyone's mind right now, right, with needed to take all residences off of cesspools by 2050. So, that would be a huge win for us in Hawaii County in the extension. So, what we're planning on doing is extending the sewer line and then donating it to the County. Page 17 LAAC-35 November 19, 2024 MR. YEH: Yes. And I'm Tom Yeh, Attorney for Hawaiian Ola Brewing Corporation. Just a little bit of background. The got their SMA permit for distillery and restaurant a little over a year ago and we've been in negotiations with DEM for some time now to hammer out this memorandum of agreement. There're several parts to this thing, which is your folks approval extension, which will also allow, as she said, others to connect to that sewer line on the mauka side, and then we also have to enter into these use and occupancy agreements with DOT (Department of Transportation). So, this comes first. There are several pieces. But Windward Planning Commission also approved their SMA permit and required this connection to the County sewer. I think it's a 10 inch line, which should be more that enough capacity to take on other users. So, from a perspective of— CHR. INABA: Sorry. Can you please speak closely into the mic. You can pull it right towards your mouth. MR. YEH: Right. It's a 10 inch line, which should be more than sufficient for what they're doing and then other users coming online. That's basically it. You know, I think it's going to be a great thing. We've got 2050 coming around where everybody's got to convert from cesspools. So, you do have a number of residential units around the mauka side of the Highway. So, this will help everybody. Thank you. CHR. INABA: Thank you. I'm going to head over to Director Mansour, if you - have any further comment. I believe the department is in support based on the supporting documents of this resolution. But anything to add? (Note: At this time, Environmental Management Director Ramzi Mansour came forward to address the members of the Committee.) MR. MANSOUR: Yes. Thank you and aloha, Committee Members and aloha to Ola Brewery too. Mr. Yeh is correct. We have been working on this.- I would appreciate and recommend this project to move forward. It has a lot of benefits to the community and also to our Sewer Master Plan. They'll add a long 10 inch sewer line that could benefit the communities conversion from cesspool to connection to sewer. You know, it took us a while to come to this agreement, but I feel strongly it's a win -win. They're going to upfront the cost and they're going to dedicate that back to the County. Thank you. CHR. INABA: Thank you, Director. Also, I want to inform the body that Deputy Corporation Counsel Diana Melon -Lacy is in Hilo Chambers if anyone has questions. I'll start off here. Council Member Kaneali`i-Kleinfelder. Page 18 LAAC-35 November 19, 2024 MR. KANEALI`I-KLEINFELDER: Thank you. Thank you for being here today. So, I'll go more logical questions. You're down below the highway so you're going to pump up to the sewer line and then back into town. How's that being done. MR. YEH: I believe there is a pump system that will go to the Belt Highway. The line runs on the mauka side of Belt Highway, right, and it'll flow through Pukihae Stream. And the turn is going to be at Hao Street. And so, as you know, Hao Street then connects with the other street that's up above, too. So, there'll be this ability to kind of connect with other residences from here. MR. KANEALI`I-KLEINFELDER: Okay. Okay. Those pump systems, they can be a pain in the butt so good luck. I know you're taking on the cost of this, but your undertaking is amazing. I'm excited to visit one day. So, yeah, that's that question. And to the Director, is there any —because we've had this in our past but is there any funding sources that the applicant can draw from or ways for them to kind of co -fund with County because we are improving a County line at the end of the project and improving more people's ability to connect to it or is it strictly on them to fund and pay for this project? MR. MANSOUR: We entertained that option early on. That's why this agreement took us a look time to get where we're at. Once you get County funding involved it totally changes the game of how the project is going to be constructed and managed. So, after back and forth in exploration of different options, this is the best option for them to move as soon as possible. MR. KANEALI`I-KLEINFELDER: Yup. Understood. And my last question for Tom. How do you have time to do this between surfing and fishing? Like, how do you get all this done? MR. YEH: Well, related to that, we're also doing a public access plan. There's a fisherman's point on the north side of the facility there. And so, we're almost done with having that out with Corporation Counsel. So, I'm going to try to go fish there as well. MR. KANEALI`I-KLEINFELDER: You know, every time there's a brew fest and we're down at that spot, always get somebody leaning over the edge going, "I like come down here and go fish." MR. YEH: They'll probably do that. MR. KANEALI`I-KLEINFELDER: Okay, cool. I like that. And public access will be provided? Good job, good job. Page 19 LAAC-35 November 19, 2024 MS. BREELAND: Yeah. So, we will have public access and we're actually improving the public access as we speak right now. So, making stairs down to it so that you don't have to bushwhack all the way down. MR. KANEALI`I-KLEINFELDER: Okay. I know it's not related to the sewer and the resolution but thank you for doing that because all too often new landowner or landowner will just lock out the public from accessing constitutionally protected rights of the people of Hawaii. So, thank you. MS. BREELAND: Absolutely. And we would never do that. MR. KANEALI`I-KLEINFELDER: Appreciate it. Okay. I yield, Chair. CHR. INABA: Thank you. Council Member Villegas. MS. VILLEGAS: Yes. Great to see you, Na`eha. And thank you for the support you're providing her and this forward thinking, accountable, connected, and kuleana, you know, just so authentically supporting our community in business practices that I wish were more the norm. If I could clone and replicate the business model that you have created and proven can be successful, I would. It's been a joy to watch Ola Brew grow and flourish and remain committed and operating with such integrity and really proving that manufacturing a product on an island can be successful and connecting it to our agricultural producers and our local food sources and bringing back `okolehao, which is also a cultural experience. Let's call it an experience. But it's just been a joy to watch you navigate and recreate a business model that I think should be a model and could be more the norm recognizing the impacts a business can have and that a profit margin is not always and should not always be the highest priority. You can run a profitable business while also prioritizing `aina and wai and ecosystems and community and kuleana and mo`opuna and our kupuna. So, thank you for doing that. It's a pleasure. I'll be in support of this. And wow, build it and then give it to the County and then it can benefit future generations. That's a model I'd love to see replicated in perpetuity. Mahalo. CHR. INABA: Thank you, Council Member Villegas. With that, Council Member Kimball. MS. KIMBALL: Thank you. Thank you for being here and of course, 100 percent supportive. Really actually appreciate that you're putting in this infrastructure for us and excited to see the business grow and develop in district. Just wanted to ask, and maybe this is a Ramzi question, timing and potential impact. I just want to be able to like warn constituents about traffic delays or Page 20 LAAC-35 November 19, 2024 anything like that might be happening as the pipe is being installed. Do we know what we're looking at once this is approved timing wise? MS. BREELAND: Yup. So, once we get into construction, we're looking at about a three month period of construction. So, I know that we're allocated a 12 month period but it should be no more than three months should everything go smoothly. MS. KIMBALL: Okay. And — MR. MANSOUR: In addition to that, the good thing about this— CHR. INABA: Director Mansour, Sorry. Council Member Kimball has the floor right now. Council Member Kimball. MS. KIMBALL: Yes. I just wanted to clarify. It's going right along the highway. Do we anticipate, maybe you don't know this, do we anticipate the one lane closure like one way traffic through there as that's going in or do, we know anything about that at this point? MS. BREELAND: You know, I'm actually, I don't know but I can get back to you on it. MS. KIMBALL: Okay. Let's just follow up on that just so we can make sure the folks —we had a situation where there was a lack of communication and DPW (Department of Public Works) was working on a project the same time DOT was working on aproject, and nobody could get to Hilo for a couple of days. So, let's just make sure we're all talking to each other in advance of this going and would love to talk with you more about the public open space because we have another project that you might be interested in tying into. Yeah. That's something I think would really be wonderful for all of us. So, I'll get you, my info. Thanks. MS. BREELAND: Yeah. For sure. Thank you. CHR. INABA: Thank you, Council Member Kimball. Director, sorry, did you have something to add at this time? MR. MANSOUR: Yeah. This project is very unique within itself because EPI (Environmental Performance Index), the consultant, us, and DOT will be working on coordination. They're going to oversee the construction of that, and our inspectors will be out there as well. So, it's kind of unique because they've taken on the construction as well. Thanks. Page 21 LAAC-35 November 19, 2024 CHR. INABA: Thank you, Director. With that, I'll be in support. And I don't think I've seen this type of application in my time on the Council, so I always get an opportunity to learn something new. And regarding the funding where, you know, we're not putting in funding right now. The applicant is going to bear the total cost, but the goal does allow them to collect for any connections that do connect into their extension for 10 years. So, that's kind of a method for the applicant to recoup funding. So, cool thing for the public for an opportunity today. With that, all those in favor of forwarding Resolution 704-24 to Council with a favorable recommendation, please say "aye." Vote on Res. 704-24: The motion to recommend adoption of Res. 704-24 was (Approved) carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Villegas, and Chair Inaba — 8. Noes: None. Absent: None. Excused: None. CHR. INABA: Thank you very much. We'll see you folks at full Council. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Bill 207: AMENDS THE STATE LAND USE BOUNDARIES MAPS FOR THE COUNTY OF HAWAI`I BY CHANGING THE DISTRICT CLASSIFICATION FROM THE AGRICULTURAL TO THE RURAL DISTRICT AT PU`UKAPU, WAIMEA, SOUTH KOHALA, HAWAI`I, COVERED BY TAX MAP KEY: 6-4-017:001 Postponed: October 1 and November 7, 2024 (Note: There is a motion by Ms. Kierkiewicz, seconded by Mr. Kaneali`i-Kleinfelder, to recommend passage of Bill 207 on first reading.) ; and Page 22 LAAC-35 November 19, 2024 Bill 208: AMENDS SECTION 25-8-11 (LALAMILO-PU`UKAPU ZONE MAP), ARTICLE 8, CHAPTER 25 (ZONING CODE) OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), BY CHANGING THE DISTRICT CLASSIFICATION FROM AGRICULTURAL — 40 ACRES (A-40a) TO RESIDENTIAL — AGRICULTURAL — 0.5 ACRES (RA-.5a) AT PU`UKAPU, WAIMEA, SOUTH KOHALA, HAWAI`I, COVERED BY TAX MAP KEY: 6-4-017:001 (Applicant: Kelvin P. Jarneski) (Area: 1.997 Acres) The Leeward Planning Commission forwards its favorable recommendation for this amendment to the State Land Use Boundaries Map and for the requested change of zone, which would allow the applicant to subdivide the property into three lots. This property is located at 64-5208 Alanui Ohana Place. Reference: Comm.1050 Intr. by: Mr. Inaba (B/R) Postponed: October 1 and November 7, 2024 (Note: There is a motion by Ms. Kimball, seconded by Mr. Kaneali`i-Kleinfelder, to recommend passage of Bill 208 on first reading.) ; and Comm. 1050.2: From Council Member Holeka Goro Inaba, dated October 7, 2024, transmitting a request to postpone Bill 208 to November 19, 2024, and proposed language to amend Bill 208, from Planning Consultant Sidney M. Fuke. CHR. INABA: Thank you, Mr. Clerk. With that, Mr. Fuke and Mr. Jarneski, if you folks would like to tee us off today. (Note: At this time, Planning Consultant Sidney Fuke and applicant Kelvin Jarneski came forward to address the members of the Committee.) MR. FUKE: Sure. Good. afternoon, Mr. Chair, Council Members. Before I start, I'd like to acknowledge the presence of Mr. Jarneski and I think he has a few words to say. MR. JARNESKI: Aloha. I just wanted to apologize to you folks that why I didn't show up at the last meeting. I got stalled on the side of the road and I didn't have no service, so there was no way to get ahold of him. So, I just wanted to apologize to you folks. MR. FUKE: Thank you. You know, having said that, just in summary, what Mr. Jarneski is proposing to do is no different than an application the Council considered like couple, maybe a month ago; the Green application in Kona. It's primarily his family's subdivision. He has three children. Essentially, he wants to subdivide his 1.9 acre property into three lots. He already has a dwelling on it. Page 23 LAAC-35 November 19, 2024 He has another permitted but unconstructed dwelling for on the site. We had gone through the Planning Commission meeting. There was no objection from the neighbors. There were no objection from the agency who were commenting on it. No in the zone "x", no flooding, no archaeological issues. We also kind of wanted to kind of point out that at the last meeting there were several concerns or comments that were made, specifically one relating —I think Council Member Villegas had raised the issue about access to Mamalahoa Highway. So, as a result I did discuss it with Mr. Jarneski and in my letter requesting for additional time on this matter, he had proposed a language that would specifically restrict that access to Mamalahoa Highway be prohibited. I think there were also some discussion, you know, because right around that time the Council had already passed, and the Mayor was deliberating on this ADU (Accessory Dwelling Unit) bill. And so, the issue was whether he was going to now construct three lots and then have three additional, so you're talking about nine or were you talking about three, and I think Council Member Evans had brought up the question. So, in that letter I had sent to Chair Inaba, I had requested an additional amendment that would specifically limit each of the proposed lot to an additional unit rather than the maximum of three. And it's my understanding that the Council approved bill has that provision which allows for, as a condition of zone change, to limit the number of units. So, here we're suggesting that the limit be capped at an additional unit. Having said that, I have nothing more to add. But we respectfully request that this body favorably consider this bill and hopefully can be moved on and at the consideration for first reading have an amendment to incorporate those two items I suggested. Thank you very much. CHR. INABA: Thank you, Mr. Fuke. And just wanting to keep us on track, we are on Bill 207 right now, state land use boundary amendment. And my apologies, the requested amendments were not prepared. So, we don't have that today, but I will make sure that if this, in whatever fashion this application moves forward, I will have them at the first reading at Council for this body to consider for connection to the highway and for the ADUs. We'll start off with Council Member Evans. MS. EVANS: Thank you. Thank you for bringing that up because I keep looking at the ADU bill that we passed and then I look at the report from the Planning Commission and really pointing out the rural designation and state land use, this ag district, rural district, trying to keep the character of small farms, having low - density residential lots. And then I was thinking you have half acre lots but now you can build three ADUs. This is not in the character of keeping it low -density ag feeling. And so, to hear that you're willing to consider saying one ADU so we don't get that density in. We keep the option for your family to do agriculture on the land, that you will leave them. I think that's what the intent was of going rural Page 24 LAAC-35 November 19, 2024 anyway, was to try to keep that rural ag kind of a high -density to low -density, kind of that divide, right, where we come and blend with the urban area and the ag area. So, I'm very happy to hear that and can be supportive. And assuming the amendments are coming, and I believe the recommendation for what I heard is you want move it forward, favorable, an have the amendments at Council. Is that your intent? CHR. INABA: Whatever the will of the body is today on how it moves forward. I will have the amendments ready for consideration at first hearing. MS. EVANS: I'd personally like to see it at Committee level, the language that you're willing to purpose, but that's for the next Council. Thank you. I yield. CHR. INABA: Thank you. Communication 1050.2 has the proposed language from Mr. Fuke, and it just needs a little bit of refinement, but the idea is there. So, I'll prepare that as two separate amendments. Any further discussion at this time? Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you. Mr. Fuke and Mr. Jarneski, thank you for being here today. Mr. Fuke, does Bill 207 need to pass to allow for the rezone in Bill 208, if the applicant is only requesting one? MR. FUKE: You know, in response to your question, yes absolutely, because the property does not have two acres. It's like 1.997 (acres). And so, because of that within the agricultural district minimum lot size is one acre so you can't do it. So, that only way that he could realize, like even a minimum of two lot subdivision, the property had to be rezoned into the, you know, the rural district because of the size of the property. MR. KANEALI`I-KLEINFELDER: The property size is five acres? MR. FUKE: No. The property is 1.997 acres. MR. KANEALI`I-KLEINFELDER: 1.997? MR. FUKE: Correct. MR. KANEALI`I-KLEINFELDER: Total? MR. FUKE: Correct. MR. KANEALI`I-KLEINFELDER: So, divided into? MR. FUKE: Three lots. Page 25 LAAC-35 November 19, 2024 MR. KANEALI`I-KLEINFELDER: Three. MR. FUKE: So, the lots would consist of about half an acre in size. MR. KANEALI`I-KLEINFELDER: Okay. The official description is 1.997 acres. What Mr. Jarneski was pointing out is that in the beginning when the surveyor kind of prepared the zoning map, it reflected two acres but in fact it's not. It's 1.997 acres based on the current conventional surveying techniques. KANEALI`I-KLEINFELDER: So, we're reading Bill 207 and 208 same time. CHR. INABA: Bill 207 is on the floor right now. That's the active motion. MR. KANEALI`I-KLEINFELDER: Okay. Okay. I yield. CHR. INABA: Thank you. Council Member Galima and then we'll head over to Hilo for Council Member Kierkiewicz. MS. GALIMBA: Thank you. Very much in support of this application. Just, you know, we need to have places for our local families to live and to provide for the next generation. I'm just a little bit curious, and this is for you, I think, Mr. Fake, maybe for the Planning Director, but I think you're the closest that we have in front of us. So I'm just kind of wondering, how is it that a two acre lot is still zoned Ag-40? MR. FUKE: Okay. From my historical perspective, when the first zoning map was created in the late 1950s or early 1970s, what they did was, what the decision makers did was they just looked at the central area should have like all the urban kind of zoning like RS-10, commercial zoning and so forth. And then they created a system where the areas immediately adjacent to the urban area would be like Ag-3 (acres), Ag-1 (acres), and then as we went further away, they went into Ag-20 (acres), Ag-40 (acres). So, it wasn't necessarily designed to address what was specifically on the ground. Now previous to that initial zoning map in 1958-59, within the agricultural district, lots were allowed to go as small as 7,500 square feet. And so, the powers that be at that time, whether it was in the Puna District or Ka`u District, South Kona, this area, felt that the only way to resuscitate the economy was we had to do export, exporting the land. And how do you export the land to bring in money? You create smaller lots. And so, the subdivision approval process back then was given to the Planning Commission without regard to zoning because basically we had no zoning except that the law said, no lots within agricultural area could be less than 7,500 square feet. Since that time, the state land use law was passed in 1970, I believe. And then they created a minimum lot size Page 26 LAAC-35 November 19,2024 requirement saying within the ag district, the minimum lot size can be no smaller than one acre. And so, that's how it came about. So, if you look in this particular area, you'll find that many of the lots that are smaller than what the zoning designation is because the concept, going back again, smaller lots closest to town; bigger lots the farther away you get. MS. GALIMBA: Thank you very much for the history lesson. You should charge us for that. Yeah. No, thank you very much. I was just really curious about that. And again, support this. Thanks. CHR. INABA: Thank you. Heading over to Hilo. Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. Mr. Fuke, always a pleasure. Mr. Jarneski, thank you for being here. We were so concerned about your wellbeing when you weren't at the initial committee meeting, so it's great to see you. I'm glad you're okay. I will be supporting both of the bills that are before us. These are very straightforward requests. They are in line with the character of the community. And Chair Inaba, you had asked about whether or not we should keep the bill in committee or move it forward to Council, I feel very comfortable moving these bills forward to Council having read the proposed conditions, the amendments to the bills, very supportive of the language that was offered by Mr. Fuke. Thank you. I yield. CHR. INABA: Mahalo. Any further discussion? Seeing none, all those in favor of forwarding Bill 207 to Council with a favorable recommendation, please say "aye." Apologies. With that, roll call vote please, Mr. Clerk. Vote on Bill 207: The motion to recommend passage of Bill 207 on first (Approved) reading was carried by the following roll call vote: Ayes: Committee Members Evans, Galimba, Kagiwada, Kierkiewicz, Kimball, Villegas, and Chair Inaba — 7. Noes: Committee Member Kaneali`i-Kleinfelder-1. Absent: None. Excused: None. CHR. INABA: Thank you. Bill 208 is now on the floor, and we'll start again with Council Member Evans. MS. EVANS: Thank you. I think just to reiterate keeping in the character of the rural ag district and trying to keep that rural nature of things. I'm appreciative of you looking at limiting it to one ADU, and so I want to thank you and your family for that because that side of Waimea, please are very concerned about keeping Page 27 LAAC-35 November 19, 2024 rural, rural, keeping ag, ag, and being that it's on the edge of where you have the larger ag lots and then some of those residential subdivisions, it's this sense of if you allow it and then put three ADUs on it, then you're looking at 12 houses under 1.997 (acres), and that's what people, I think, are really concerned with. So, I appreciate your, and look forward to the amendment that I hear is going to be forthcoming. Thank you. I yield. CHR. INABA: Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you. So, to the applicant and to Mr. Fuke, I am really concerned about the direction of the ADU bill in correlation to what we're looking at right now. This is one of the first few that we've seen and as this gains traction and people start to understand that in rural areas or urban areas you can build up to three ADUs, one being a vacation rental as well as have your main or primary residence, we are going to increase the density of our urban and rural areas so tremendously that we will not be able to keep up as a County with the infrastructure required to do so. So, this is in no way directed at you, Mr. Jarneski. This is more of a statement to the community who's watching this with great interest because this is the first one. I think we have two and we have others coming that are landing with the same purpose. Not all are doing this because their `ohana needs a place to live. Some are doing it because you can build a tremendous amount of housing in a very quick fashion in some areas where it's needed and some that are outlined rural districts or districts that just don't have the infrastructure to back it up. So, I appreciate the exercise. I do want to see the amendment before I say yes to anything. We don't have the amendment in front of us. Without that amendment it's hard for me to say yes because I can't see he final bill. And until then, I'm not comfortable moving it forward. So those are the two reasons I'll be voting no today. When I do see the amendment, I'll be able to make a better decision because I'll have the actual final bill in front of me. And then, too, I just am really concerned about what we've done with the ADU bill and its impact on our community for the long term. And that, again, no way against you, Mr. Jarneski. Just this is more just a general look at what we have created for the future of our island. We need housing but there has to be a limit to how much housing we'll put in and be able to take care of our residents as a County at that same time. So, yeah, thank you for listening and I appreciate you being here. Thank you, Mr. Fuke. I yield. CHR. INABA: Council Member Kimball. MS. KIMBALL: I'm going to keep this brief because it's not actually pertinent to the bill but related to the conversation, which is I want to encourage my colleagues to look at the Hawaii Revised Statutes (HRS) and the administrative rules for the Department of Health with respect to the requirements with Page 28 LAAC-35 November 19, 2024 individual wastewater systems. So, as much as there are concerns about explosive growth in rural areas, there are limitations that exist outside of our County Code particularly pertaining to wastewater. So, I'm not going to go into detail about what those rules say, but I encourage you to review them. Thank you. CHR. INABA: Thank you. And again, I just want to apologize. It was an oversight of our office that the amendment is not before us today. So, it will probably be done by the end of the day, but they'll be ready again at the first hearing. Any further discussion on this matter? Seeing none, all those in favor of forwarding Bill 208 to Council, Mr. Clerk, sorry, roll call vote on this matter. Vote on Bill 208: The motion to recommend passage of Bill 208 on first (Approved) reading was carried by the following roll call vote: Ayes: Committee Members Galimba, Kagiwada, Kierkiewicz, Kimball, and Chair Inaba — 5. Noes: Committee Members Evans, Kaneali`i-Kleinfelder and Villegas — 3. Absent: None. Excused: None. CHR. INABA: Thank you. Thank you, Mr. Fuke and Mr. Jameski. Next order of business, please. Bill 224: AMENDS SECTION 25-8-33 (CITY OF HILO ZONE MAP), ARTICLE 8, CHAPTER 25 (ZONING CODE) OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), BY CHANGING THE DISTRICT CLASSIFICATION FROM AGRICULTURAL — 3 ACRES (A-3a) TO SINGLE FAMILY RESIDENTIAL—15,000 SQUARE FEET (RS-15) AT CITY OF HILO, SOUTH HILO, HAWAI`I, COVERED BY TAX MAP KEY: 2-4-080:017 (Applicant: Andrew Matsuura) (Area: 3.25 acres) The Windward Planning Commission forwards its favorable recommendation for this change of zone request, which would allow the applicant to subdivide the property into six lots and one private roadway lot. The property is located at 1078 Ahe Street. Reference: Comm.1147 Intr. by: Mr. Inaba (B/R) Motion to Approve: Ms. Kimball moved to recommend passage of Bill 224 on first reading. Seconded by Ms. Galimba. CHR. INABA: Mr. Fuke and Mr. Matsuura, if you would like to give us an overview and we will also give Mr. Arai an opportunity to after as well. Page 29 LAAC-35 November 19, 2024 (Note: At this time, Planning Consultants Sidney Fuke and Daryn Arai, and applicant Andrew Matsuura came forward to address the members of the Committee.) MR. FUKE: Sure. Thank you very much, Mr. Chair, again, Members of the Committee. Sidney Fuke, Planning Consultant. With me today is Andy Matsuura. He's the applicant. He also has his son. His son's name is PJ. And just to add some humor, I guess, to the whole thing. PJ is initials for Peter Jr., and as you know, Andy's brother is Peter. And Peter's son is called AJ, Andy Jr. I mean, that's how close the family is. You also have Daryn Arai; he's on Zoom. But what they wanted to do is create like a family lot type of subdivision. It's a three -acre area, three and a half acres, create five lots; a total of six lots, one of which would be for his cousin who currently lives on the property and the remaining area would be subdivided into five, you know, basically, half -acre or more type of lots. The surrounding area is, essentially, it ranges between 10,000 and 15,000 square feet. But he deliberately wanted to create like a 15,000 square foot area largely to, you know, give the family a little bit more room. So, it's in a location where it's evolving into a residential community. For those who are familiar with Hilo, it's on the Hamakua side of Haihai Street and everybody knows that area is, you know, rapidly becoming a very residential area. All of the basic infrastructure is there; the water, the wastewater system. It's not in the floodway. SHPD (State Historic Preservation Division) had offered its clearances. The only thing is that he has to get an access from Ahe Street, he has to extend that. With the extension of Ahe Street and potentially another connection to Haihai Street, you know, they'd be able to have better circulation in this area. So, we finally arrived at a condition that both the staff as well as the Planning Commission excepted that would allow him to develop the subdivision, as a six lot subdivision standard. Nevertheless, the right of way would be 50 feet so that if and when the County finds sufficient funds or others want to develop it and eventually make connectivities, then that would possible, and that kind of connection would not be frustrated at all. Subsequent to, you know, like this application —I mean, subsequent to the Jarneski application, the right before you, this whole ADU thing came up. So, we had then proposed at the Planning Commission that each of the lots, again, like the Jarneski's property, would be limited to one more additional ADU and not three, as with currently the current bill would allow. So, that is a condition that we're also kind of like, we recommended to the Commission. And that's what you see before you today. It has that kind of like limitation. Page 30 LAAC-35 November 19, 2024 I believe that, you know, to answer partially the comment made by others on the other application, the Council has the authority right now, if I read the bill correctly, to limit the number of ADUs as you go through the zone change process. However, if you have existing zoning that don't go through the zone change process, then the requirements will become more administrative in terms of as Council Member Kimball pointed out, if you can meet the water requirements or sewer requirements, so on and so forth. But nevertheless, by adopting the bill that's currently before you, there would be a specific limitation to just cap it at two, regardless of whether you have the appropriate. infrastructure. Having said that, we respectfully request this Committee's approval and ultimately the Council's approval of this family subdivision. CHR. INABA: Thank you. Mr. Matsuura, anything to add at this time? Alright. Mr. Arai, checking in with you if there's anything to add? MR. ARAI: Good afternoon. My name is Daryn Arai, residing in Hilo. Sorry I couldn't be with you today. It's kind of always difficult to follow up on Sidney, he is way more eloquent than I am. But just a simple thought is that the Council within maybe the past five years have approved of three rezonings within the immediate area, all within maybe two to three minute walking distance from the subject property. And in doing so, the Council has promoted the development of, let's see, 57 single-family residential lots that the homeowners are currently building their new homes upon, and with another 33 lots currently under construction. So, you know, you're giving an opportunity where residents and members of the community can realize the benefits of homeownership. And we're just simply hoping that the Council can afford the same opportunity to Andy Matsuura and his family. Thank you for the opportunity. CHR. INABA: Thank you. Checking in if there's anyone in Hilo Chambers from the Planning Department here that would like to add in? We have Zendo Kern, current Director of the Planning Department, joining via Zoom. (Note: At this time, Planning Director Zendo Kern came forward to address the members of the Committee.) MR. KERN: Aloha, Chair, Members of the Committee. Zendo Kern, Planning Director. Nothing to add but happy to answer any questions if there are any. CHR. INABA: Mahalo for joining in. We'll start with Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. I just want to go back to something that I thought I heard Mr. Fuke say, that there was County sewer available. But then Page 31 LAAC-3 5 November 19, 2024 when I'm reading it, it says there's no County sewer available. So, I just need a clarification on that, please, Mr. Fuke. MR. FUKE: I'm sorry. If I did say that, then I misspoke. I didn't say, I remember saying the County sewer is —I think the wastewater requirements in response for an ADU would have to be complied with and that's governed by the Department of Health. MS. KAGIWADA: Right. The wastewater requirements for all these new homes will have to be in compliance with the Department of Health, correct? MR. FUKE: Absolutely. MS. KAGIWADA: Okay. Okay. Alright so, first of all, I'm mostly in support of this bill. I just wanted to ask a little bit more about the ADU situation just because one of the things that we have allowed is that our ADUs, one could be used for Short -Term Vacation Rental (STVR). Do you have any intention of potentially going forward and doing short-term vacation rentals for these properties, Mr. Matsuura? MR. MATSUURA: No. CHR. INABA: Go ahead and turn the mic on; press the button and then you can respond. MR. MATSUURA: No. MS. KAGIWADA: Okay. I'm wondering if you would be amendable to saying you wouldn't be doing short-term vacation rentals in either of these properties or additional ADUs that may be built down the road, as a condition? MR. FUKE: So, if I understand you correctly, you'd want to have like a generic condition that would prohibit short-term vacation rental on any of the proposed subdivided lots? MS. KAGIWADA: Yes. MR. FUKE: My understanding is that this is designed entirely for the family with no intention of a short-term vacation rental use, but I'll differ that to Mr. Matsuura. MR. MATSUURA: No. I'm not going to rent or vacation. MS. KAGIWADA: Okay. Do you mind adding it as a condition to the subdivision, the rezone? Page 32 LAAC-35 November 19, 2024 MR. FUKE: While I think that that's his representation, the question is whether you can have a condition that would expressively prohibit use or an activity that would otherwise be allowed. Now, I know like on terms of the ADU, there's an expressed provision in the bill itself, it says that the Council has the authority to limit the number of ADUs. Whether there is in the short-term vacation rental bill, the ability for the Council to restrict use, these would be a zoning condition, I can't speak to that, but maybe your Counsel could. MS. KAGIWADA: Okay. I'll look into it, and I'll be back to you. I'll follow up with, you, okay? I would be in favor if it was allowable. Otherwise, I'm supportive of the bill overall. CHR. INABA: Do you yield the floor, Council Member Kagiwada? MS. KAGIWADA: No, thank you. I yield. CHR. INABA: Okay. Council Member Kimball. MS. KIMBALL: Yeah, thank you. I just wanted to. speak to the ADU being used as a short-term vacation rental. You know, we have already established that in rural, residential, and agricultural areas, unhosted short-term vacation rental are not permitted. Only in the case where in these lots, the primary dwelling was the primary residence of the owner, could they develop an ADU and have it as a short-term vacation rental. And so, in our deliberations around the STVR bill, one of the things that came up in conversation was for a lot of our local families, the way that they make ends meet is to have a hosted rental on their sites. So, I realize that like there's a lot going on here, but I'm going to actually contradict the recommendation of Council Member Kagiwada. I think that that's potentially prohibiting a family from generating some additional income that would allow them to stay here in their home. And it would be a hosted rental. They could even apply for a bed and breakfast permit. And so, I would just caution against that. I'm supportive in its current form without that condition. Thank you. CHR. INABA: Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you. Yeah, I have to agree with Council Member Kimball for a few reasons. Once we rezone and we provide the rezoning, the property's become the property's. I mean, ultimately, they could be the applicant's, they could be someone else's down the line, they could be sold. The zoning lies with the property. And so regardless of whether the applicant ever says, this is what I'm going to do, this is my purpose, that can change in the future. It never holds true. So, I know it doesn't true, it doesn't hold in perpetuity unlike the zoning ordinance that we put in place, and I do like what Mr. Fuke has done here, which is he's putting in the zoning ordinance that you'll, that in running with the land you're going to have the requirement that no more than one Page 33 LAAC-35 November 19, 2024 ADU is built. And that I appreciate because Mr. Fuke's actually understanding where the Council's coming from and providing a middle ground between what the applicant can do legally with what we've created to be our laws and what I believe is fitting for the area. This area has infrastructure to support what you're asking to do. And that is the difference between ag parcels in rural areas versus parcels in town centers that are already being built out. It would be awesome if this had sewer. That would be very helpful. But it doesn't at this point, but it. may in the future. So, I'll be supporting the rezone today for the reasons I've stated. And Mr. Fuke, I appreciate that you've taken the time to actually go in and carve out that we can do no more than one. I'm thinking with the size of parcel we're creating that more than one house and an ADU wouldn't even fit. So, that would also lie within what's actually logical and able to be built on a parcel of this size? MR. FUKE: That's correct. So, you wouldn't be able to, based on the RS-15 zoning, he wouldn't be able to subdivide and create another, you know, parcel so that.that parcel can then have like two units on it. So, basically all of the lots are going to be of such size that mathematically he can't subdivide it further. So, by this zoning restriction all you're going to see is one house per lot with the possibility of one additional dwelling unit, but this additional dwelling unit cannot be subdivided and sold off as a separate parcel, and it cannot be condominiumized because the law currently requires any time you condominiumize, you have to meet the minimum zoning requirements. So, you can't condo. So, it has to be a rental unit or part in parcel like the traditional `ohana zoning, `ohana kind of residence concept. So, that is how a lot going to be used, if at all, maximum two. No subdivision; cannot be subdivided. MR. KANEALI`I-KLEINFELDER: Thank you. Thank you for that because you found a middle ground between, I think, what you knew you were going to walk into and what you can do legally, and I really -appreciate that. MR. FUKE: Thank you. MR. KANEALI`I-KLEINFELDER: Question. What's the difference between six -lot subdivision and a seven -lot subdivision, besides one lot; what requirements? I believe there's requirements that kick in once you go past six. MR. FUKE: I'm sorry. Okay. MR. KANEALI`I-KLEINFELDER: I know she thinks it's funny but wait till you hear this. MR. FUKE: I was going to tell you that, one. But, no. The difference is the Subdivision Code. If you do subdivision code for six or less lots, then you can do Page 34 LAAC-35 November 19, 2024 a private road standard. Private road standard calls for a 20 foot wide right of way with a 60 foot wide pavement. You penetrate six lots, then you've got the whole nine yards. You've got to do the 50 foot wide right of way, paved shoulders, etcetera, etcetera. MR. KANEALI`I-KLEINFELDER: Okay. Is there fees when you do more than six or do you have to pay the fair share? MR. FUKE: There's the fair share contribution, yes. MR. KANEALI`I-KLEINFELDER: Okay. So, the main difference was if you've gone to seven lots, because nine couldn't been created for this parcel. MR. FUKE: Mathematically, I guess you could, you know, however you size it, it comes nine -nine. Mathematically, you could do that. The question is whether he would want to do that. If he does a nine -lot subdivision, then he has to put a 50 foot wide right of way on Ahe street, which increases the cost of having the subdivision, you know, like astronomically high. He has to also have to widen the other street that goes to service the, you know, smaller portion of the property. It's called Kikaha Street. And then when you put a 50 foot right of way in all of that, I mean, you're just going to throw your hands up. I'm not going to do it. MR. KANEALI`I-KLEINFELDER: Okay. That is what I understood. So, thank you for saying that because it's important and I think it's part of the reasoning behind the six versus the nine. If you put in a 50 foot right of way, you also would lose a lot of property, which may have trimmed down your amount of parcels within your subdivision as well. So, just providing that information for the record. Thank you. MR. FUKE: You're very welcome. MR. KANEALI`I-KLEINFELDER: Thank you, Mr. Fuke, for your experience. Appreciate you. I yield. CHR. INABA: Thank you. Council Member Kimball. MS. KIMBALL: Yeah, thank you. Along the lines with Council Member Kaneali`i-Kleinfelder's questions. Are you going to have to provide one of these lots at the affordable rate because it's five and you're triggering Chapter 11? I noticed the reference to Chapter 11. MR. FUKE: Correct. You know, based on the existing County Housing Code, he has a one credit obligation that he has to fulfill. Given the family size, it's going to be easy. Page 35 LAAC-35 Vote on Bill 224: (Approved) November 19, 2024 MS. KIMBALL: Great. And what are you looking at for the average sizes of these lots? MR. FUKE: 15,000 to 20,000 square feet. MS. KIMBALL: 15,000 to 20,000 square feet. Okay. So, you know, with respect to the ADUs, with individual wastewater systems, if you're going to be on septic, right? MR. FUKE: Correct, yeah. MS. KIMBALL: So, the Department of Health will only allow five bedrooms to be attached to individual wastewater system with a leash field of 10,000 square feet. So, in each of the 15,000 square feet lots, you would be able to do an additional dwelling unit but your total bedrooms between the main dwelling and the additional dwelling could only be five, right. So similarly, if it's a 20,000 foot lot, you might be able to get two individual wastewater systems on there but probably not with setbacks and other requirements. I bring this up because of the condition you mentioned about saying you'd only do one ADU. Given Department of Health requirements, you would only be able to fit one on there with the total bedrooms between the main dwelling and the ADU being five. So, just wanted to share that with respect to the ADU development. MR. FUKE: Thank you. CHR. INABA: Anyone in Hilo? Alright, coming back to Kona. Any discussion? Mr. Fuke, thank you for Condition M and being proactive there regarding the ADU and I don't have anything further to add right now. So with that, all those in favor of approving Bill 224 and forwarding to Council with a favorable recommendation, please say "aye." The motion to recommend passage of Bill 224 on first reading was carried by the following voice vote: Ayes: Committee Members Evans, Galimba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Villegas, and Chair Inaba — 8. Noes: None. Absent: None. Excused: None. CHR. INABA: Thank you, Mr. Fuke and Mr. Matsuura. Last order of business. Page 36 LAAC-35 November 19, 2024 Bill 225: AMENDS ORDINANCE NO. 14-54 WHICH AMENDED SECTION 25-8-26 (PAHOA ZONE MAP), ARTICLE 8, CHAPTER 25 (ZONING CODE) OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), BY CHANGING THE DISTRICT CLASSIFICATION FROM AGRICULTURAL —1 ACRE (A -la) TO VILLAGE COMMERCIAL — 20,000 SQUARE FEET (CV-20) AT KEONEPOKO HOMESTEAD LOTS, PUNA, HAWAI`I, COVERED BY TAX MAP KEY: 1-5-007:061 (Applicant: Maui Varieties Investments Inc. (formerly Jerry Souza)) (Area: 1 acre) The Windward Planning Commission forwards its favorable recommendation for the applicant's request for a 10-year time extension to Condition C (Establishment of a Commercial Use), and an amendment to Condition H (Road Improvements). The property is located at 15-1447 Kahakai Boulevard. Reference: Comm.1148 Intr. by: Mr. Inaba (B/R) Motion to Approve: Ms. Kierkiewicz moved to recommend passage of Bill 225 on first reading. Seconded by Ms. Galimba. CHR. INABA: Mr. Fuke, you're on a roll. Go ahead. (Note: At this time, Planning Consultant Sidney Fuke and Representative for Ace Hardware, Milton Fujii, came forward to address the members of the Committee.) MR. FUKE: Thank you very much. Again, Sidney Fuke, Planning Consultant. Seated to my left is Milton Fujii, who's representing Ace Hardware. Joel Hisanaga is also sitting in the back. He's also another employee. Just in summary, the property was originally zoned by this friend of mine, Jerry Souza. He makes one of the best Portuguese sausage and smoked pork, if you. ask me. He wanted to do it commercially and so he had this warehouse and so to be able to do it he had to have the property rezoned. But shortly thereafter, he had an industrial accident, so he had to abandon that concept and along came Ace Hardware saying if you're interested in buying the property. So, Ace Hardware bought the property in 2017. They had plans prepared, concept plan to do an Ace Hardware Store relocated from —you know, its small store in the Puna Village, barely visible, barely accessible, and to go to a location which is close to Longs Drugs, Burger King and all that complex. And so, what happened was that they had the concept plan prepared then things got way sided because of the 2018 eruption. And so, that kind of like came and passed and he kind of resurrected that plan and then boom, you got COVID that struck in 2020. And so that kind of like pushed everything back, meaning that the project couldn't Page 37 LAAC-35 November 19, 2024 actually proceed based on the projected time table which was articulated and required by the zoning condition. So, here we are right now. The zoning extension ended in the year 2024. He's requesting like an additional 10 years to complete construction of the project and that's the request before you. I know that there have been some questions as far as like, you know, whether he could do it in like five or seven years or even something less. From all my discussions with Mr. Kamitake, the owner, he said that his goal is to kind of build it sooner than later. But he can't really, you know, guarantee that it will come up within the five or, you know, a fixed year period largely because so, you know, looking at the plans will have to still be prepared let alone approved. Then again, you have to look at financing. And so, he had asked that to provide him the required comfort to complete it, you know, ten years will give him that kind of comfort. But more than likely it will probably be constructing way before then. And having said that, you know, that's the request before you. And I'm again, on behalf of the Kamitake and Ace Hardware, we're requesting your support. CHR. INABA: Thank you, Mr. Fuke. Anything to add for the applicant? Alright. I'm going to give the opportunity to the Planning Department, Director Kern. (Note: At this time, Planning Director Zendo Kern came forward to address the members of the Committee.) MR. KERN: Thank you, Chair. Nothing to add here. CHR. INABA: Thank you. Heading over to the Council Member of the district, I believe, Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair Inaba. Mr. Fuke, thank you very much for the overview and for this request. I'm in strong support of the time extension. Ace Hardware provides a tremendous service to our lower Puna community, and I would welcome the opportunity for them to relocate and to create a larger space. Just knowing how that community is growing, they definitely need access to, you know, more resources that Ace Hardware provides. I think everything that is written here within the conditions of approval are very straightforward and I love the fact that we are still going to be kind of centralizing access to these resources in this new growing commercial area of Pahoa town. So, no questions; I just want to provide my support for the request here today. I yield. CHR. INABA: Thank you. Any further discussion. Seeing none, all those in favor of forwarding Bill 225 to Council with a favorable recommendation, please say "aye." Page 38 LAAC-35 November 19, 2024 Vote on Bill 225: The motion to recommend passage of Bill 225 on first (Approved) reading was carried by the following voice vote: Ayes: Committee Members Galimba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Villegas, and Chair Inaba — 7. Noes: None. Absent: Committee Member Evans — 1. Excused: None. CHR. INABA: We will see you folks at full Council. MR. FUKE: Thank you very much. CHR. INABA: This brings us to the end of our agenda. Any announcements? Seeing none, this meeting is adjourned at 2:48 p.m. ADJOURN- There being no further business, Chair Inaba adjourned the meeting MENT: at 2:48 p.m. CHR. INABA: Mahalo. Approved: JUN 18 2025 Mr. Holeka Goro Inaba, Chair (Date) Legislative Approvals and Acquisitions Committee HI/tk Page 39