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HomeMy WebLinkAboutMIN FC 2025/03/18 (2024-2026) DRAFT Committee on Finance 6th Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawaii March 18, 2025 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 11:29 a.m., in the Council Chambers, Kailua-Kona, by Mr. Matt Kdneali`i- Kleinfelder, Chair. ROLL CALL: Present: Mr. Matt Kdneali`i-Kleinfelder, Chair Mr. James E. Hustace, Vice Chair Mr. Holeka Goro Inaba, Member Ms. Jenn Kagiwada, Member ................. Ms. Heather L. Kimball, Member(via videoconference from Hilo) Mr. Dennis "Fresh" Onishi, Member Ms. Rebecca Villegas, Member(came in later) Absent& Excused: Ms. Michelle M. Galimba Member Ms. Ashley L. Kierkiewicz, 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 individual registered to speak and came forward when called by the Chair: Joyce Folena: Res. 96-25 (Comm. 169), in support. COMMUNI- The Chair directed the Committee to proceed to the next order of Business, CATIONS: Communications. Comm. 24.5: REPORT OF CHANGE ORDERS AUTHORIZED: JANUARY 1 — 15, 2025 From Finance Director Diane Nakagawa, dated February 28, 2025, transmitting the above report pursuant to Section 2-12.3 of the Hawaii County Code. FC-6 March 18,2025 Vote on Comm. 24.5: Mr. Inaba moved to close file on Comm. 24.5. Seconded Filed by Mr. Onishi and carried by the following voice vote: Ayes: Committee Members Hustace, Inaba, Kagiwada, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Galimba and Kierkiewicz—2. Excused: None. Comm. 24.6: REPORT OF CHANGE ORDERS AUTHORIZED: JANUARY 16 —31, 2025 From Finance Director Diane Nakagawa?dated February,28, 2025, transmitting the above report pursuant to Section 242.3 of the Hawai'i County Code. Motion to Close File: Mr. Inaba moved to close file on Comm. 24.6. Seconded' by Mr. Hustace. CHR. KANEALI`I-KLEINFELDER: Council Members, discussion? Okay, Council Member Kimball, do we have Finance or OHCD (Office of Housing and Community Development) in chambers in Hilo? MS. KIMBALL: Yes we do, Chair. CHR,KANEALI`I-KLEINFELDER: Beautiful. Will Ms. Nakagawa, Director, if you,could come up, and then probably a follow-up by OHCD if they are available? (Note: Atthis time, Finance Director Diane Nakagawa and Housing Administrator Kehaulani Costa came forward to address the members of the Committee.) MS. NAKAGAWA. Good morning, Council Members. Diane Nakagawa, Finance Department. CHR KANEALI`I-KLEINFELDER: Good Morning. Who else is there? Sorry, it's hard to see on the camera. M : COSTA: Hi. Good morning. It's Kehau Costa, Housing Administrator. CHR KANEALI`I-KLEINFELDER: Hello, Administrator. Thank you for being here. Two questions. Tinguely Development on the very bottom of our list for the design build contract for Kukuiola Access Road; percent of the original contract is extreme being 3,400 percent above what was expected. Can you give us a breakdown of why? Not itemized but, I mean, what's the deal between the original contract and where we stand now? Page 2 FC-6 March 18,2025 MS. COSTA: So I'm going to have to get you more detail on that. This contract was prior to my term. This is an amendment to a contract that's otherwise complete. We're already in RFP (Request for Proposal) for the build on Kukuiola. So this project, the design is done on this, I believe. And then this was an amendment just to include GET (General Excise Tax). CHR. KANEALI`I-KLEINFELDER: Okay. Yeah, if you could look into that a little bit and maybe even for our Finance Department, looking at that purpose provided in the change order for sewer laterals and dither requirements or needs of via Tinguely Development. But just the original contract versus the cumulative change orders or contract orders has gained my interest. MS. NAKAGAWA: Will do, Chair. We'll go ahead and'take a look at it. This was, you know, the original contract date was back in 2020. And I don't recall the specifics but there's been a lot of changes. So we'll go ahead,and work with OHCD and provide some background for you. CHR KANEALI`I-KLEINFELDER: Beautiful. I appreciate that. I think someone from Tinguely Development actually inquires being on one of our commissions as well. So that raised some interest for me. And second one for Administrator Costa; thinking back to our discussion with OHCD and our homeless and housing fund and,some of the programs that were offered. This Vibrant Hawaii Community Base dical Service Navigator's pilot program sounds very much like what was;put forward,by the CEO (Chief Executive Officer),'not CEO, the nonprofit Director Paul Normann. Are these similar programs; is'this an existing program or this is a new program being entered into an agreement with OHCD? MS. COSTA: This is an existing program. This is not part of the housing homeless fund. This is'a different federal fund. I believe it was under COVID (Coronavirus Disease). I could be wrong. Yeah so this is a contract with Vibrant Hawai'i. They have social service navigators in each geographic area. The contract had an ability to extend one year, and this is a no cost extension on an existing contract. CHR KANEALI`I-KLEINFELDER: So no further cost;just an ongoing contract being memorialized by the change orders? MS'. COSTA: Yes. No additional cost. CHR KANEALI`I-KLEINFELDER: And this was from ARPA (American Rescue Plan Act) funds or CARES (Coronavirus Aid, Relief, and Economic Security Act) funding; one of the two? MS. COSTA: Yes. ARPA. Page 3 FC-6 March 18,2025 CHR. KANEALI`I-KLEINFELDER: ARPA. MS. COSTA: Yeah. CHR KANEALI`I-KLEINFELDER: Okay. I'm going to follow up with you offline on that one. Thank you. MS. COSTA: Okay. Thanks. CHR KANEALI`I-KLEINFELDER: Okay. Any further discussion? Beautiful. Thank you for your time and for being here. Thank you, Director, for making sure all of our different departments are hereto help us with these questions. Motion is on the floor to close file on Communication 24.6, all in favor? Vote on Comm. 24.6: The motion to close file on Comm. 24.6 was carried by the, Filed following voice vote: Ayes: Committee Member'Hustace, Inaba, Kagiwada, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Galimba and Kierkiewicz—2 Excused: None. CHR. KANEALI`I-KLEINFELDER: Resolution 96-25, please. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order ofResolution . Res. 96-25: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORETHAN ONE FISCAL YEAR FOR MULTI-YEAR LEASES FOR NINE MID-SIZE 4X4 TRUCKS FOR THE DEPARTMENT OF PARKS AND RECREATION Authorizes the Mayor to enter into five-year lease agreements with an approximate total monthly cost of$10,000, to transport staff between base yards and park facilities to perform maintenance and cleaning duties. Reference: Comm. 169 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Motion to Approve: Mr. Inaba moved to recommend adoption of Res. 96-25. Seconded by Ms. Villegas. CHR KANEALI`I-KLEINFELDER: Is there anyone from the Parks and Recreation Department in our chambers this morning? Page 4 FC-6 March 18,2025 MS. KIMBALL: Yes there is, Chair. She's joining us. CHR. KANEALI`I-KLEINFELDER: Beautiful. Please introduce yourself and then provide us a little background briefly on what's in front of us today. (Note: At this time, Parks and Recreation Business Manager Charmaine Felipe came forward to address the members of the Committee.) MS. FELIPE: Good morning. Charmaine Felipe with Parks and Recreation. Business Manager. CHR KANEALI`I-KLEINFELDER: Good morning, Charmaine. MS. FELIPE: Morning. CHR KANEALI`I-KLEINFELDER: ,What's the scoop? MS. FELIPE: Well,,Parks and Recreation put together a vehicle replacement plan and went over it with Finance, came up with,a schedule, and this year alone we are in need of replacing 16 vehicles, most of which will have been decommissioned by our Automotive Division from Public Works or will not pass safety inspection come the next go around. So we are looking at purchasing seven this year. That request already wentin But we also need to lease nine out of the,16 vehicles because it wasn't in our current budget. CHR KANEALI`I-KLEINFELDER: Okay. Thank you. To the Council, discussion? Council Member Onishi. MR. ONISBL Thanks;Mr. Chair. Ms. Felipe, is Ms. Nakagawa there too? MS. FELIPE: Yes. MR. ONISHL Okay. I like the idea that you folks are doing this that it helps out the County with, I guess, financing. And I met with Director Nakagawa about the golf course. Have you folks talked about their equipment at the golf course being leased? (Note: At this time, Finance Director Diane Nakagawa came forward to address the members of the Committee.) MS. NAKAGAWA: Good morning again, Council Member. We've talked a little bit, but we haven't gotten into completing all the research on what is more beneficial for those particular pieces of equipment. You know, for this one we've been working with Parks and Recreation for quite a while on the development of their vehicle replacement plan and we've evaluating how many to purchase and Page 5 FC-6 March 18,2025 how many to lease, and part of the strategy has been of course what's available in the budget but also long term replacement schedules and making sure that all these vehicles will not need to be replaced at the same time. Unfortunately, we are far behind in the replacement of vehicles, and so there's some larger purchases in the next couple of years so our staff can have what they need to do their jobs. MR. ONISHL And then maybe explain a little bit more about how this leasing is going to be working. So after the five years, will the County have an option to purchase or can we? MS. NAKAGAWA: Absolutely. So in this case this:is a finance lease not like a just lease of equipment. So this is just being'able to finance the purchase of these vehicles over the term. MR. ONISHL Okay. Okay. Got it. And then now with the old-vehicles, are you folks going to be getting it where it can be auctioned off to the public to get some revenue back? MS. NAKAGAWA: So for those vehicles as with all others in the County, if they are not operable or are deemed inoperable by our Automotive Division, then yes. That is something that will go on auction. That's for our Property Management Division and we are looking to getthat underway shortly. MR. ONISHL Good because I've heard that there is like, I guess, a number of vehicles that can be auctioned off but then for I think the past two years nothing has happened So I look forward to you folks moving forward on that. MS: NAKAGAWA: Yup. You are correct. It is two years behind, but it is on our priority,list, and We look to get that done. MR. ONISHI: Great. Thank you. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Inaba. MR. INABA: Thank you. For the B-52, it's saying that trucks will not be available for the division to operate effectively, and maintenance of trucks will take longer due to vehicles needing major repairs. When you're saying, you're talking about the existing trucks or the new trucks? NfS. FELIPE: So we have seven of them that are already decommissioned, and we are borrowing and sharing vehicles currently,which takes a big toll on the efficiency of getting our staff out to the facilities. MR. INABA: Okay. Understood. And then,just in terms of the values, I don't know if this math is computing correctly. I think there's an extra thousand dollars Page 6 FC-6 March 18,2025 per month. For this lease and the $10,000 per month, Director, I think it's supposed to be $9,000 per month. MS. FELIPE: That incorporates the interest that we have to pay for the financing. MR. INABA: Okay. So is that interest included in the total purchase price? MS. FELIPE: No. MR. INABA: But it is an expense, right? MS. FELIPE: Yes. MR. INABA: Well, Director, afterwards if We can just make sure this is computing correctly. Thank you. MS. NAKAGAWA: Council Member,yes. We will. When the department's submit this, it's their estimate per truck. They still need to go through the bidding process and then also through the process with the lease, the final lease schedule and payments, and if there's any changes to this we usually go ahead and note that as well. So sometimes they are a bit conservative on the price to make sure that it is covered since procurement has not occurred at this point. MR. INABA: Okay. Thank you, Yeah. I just want to make sure that what we're representing here in our public documents is accurate. So if it is an actual expense for the total price then'let's make sure that it reflects that correctly. Thank you. CHR. IANEALI`I-KLEINFELDER: Thank you. Council Member Kimball,just checking in' MS. KIMBALL I'm all good. Thank you. CHR KANEALI`I-KLEINFELDER: Okay. Thank you. Okay. Seeing no further discussion,just to the departments, thank you. From what I've heard from our staff in Parks and Recreation, a lot of their vehicles actually have holes in the floorboards, and they can see the road when they're driving and it's a safety concern for our employees. So I appreciate the department making some headway and getting them new vehicles. They are much needed by the department. Although there is an expense, we've got to keep our guys safe. So thank you. Okay, without any seeing further, we have a motion on the floor to forward Resolution 96-25 to Council with a favorable recommendation. All in favor? Page 7 FC-6 March 18,2025 Vote on Res. 96-25: The motion to recommend adoption of Res. 96-25 was (Approved) carried by the following voice vote: Ayes: Committee Members Hustace, Inaba, Kagiwada, Kimball, Onishi, and Chair Kdneali`i-Kleinfelder—6. Noes: None. Absent: Committee Members Galimba, Kierkiewicz and Villegas —3. Excused: None. CHR. KANEALI`I-KLEINFELDER: Last item, please. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Bill 35: AMENDS ORDINANCE NO. 24-32,AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAIJ FOR THE FISCAL YEAR ENDING JUNE 30, 2025 Appropriates revenues in the State Grants—Mate Substance Abuse Prevention Coordination Grant account($7,100); and appropriates the same to the State Substance Abuse Preventzon'Coordination Grant,account. Reference: Comm. 170 Intr.by: Council Member Kdneali`i-Kleinfelder (B/R) Vote on Bill 35: Mr. Inaba moved to recommend passage of Bill 35 on first (Approved) reading. Seconded by Mir. Hustace and carried by the following voice vote: Ayes: Committee Members Hustace, Inaba, Kagiwada, Kimball, Onishi, Villegas, and Chair Kdneali`i-Kleinfelder—7. Noes: None. Absent: Committee Members Galimba and Kierkiewicz—2. Excused: None. Page 8 FC-6 March 18,2025 ADJOURN- There being no further business on our agenda today, Chair Kaneali`i-Kleinfelder MENT: adjourned the meeting at 11:47 p.m. Thank you very much. Approved: Mr. Matt Kaneali`i-Kleinfelder, Chair (Date) Finance Committee MK/tk Page 9