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HomeMy WebLinkAboutMIN FC 2025/05/06 (2024-2026)Committee on Finance 10a' Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawaii May 6, 2025 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 1:00 p.m., in the Council Chambers, Kailua-Kona, by Mr. Matt Kdneali`i- Kleinfelder, Chair. ROLL CALL: Present: Mr. Matt Kaneali`i-Kleinfelder, Chair Mr. James E. Hustace, Vice Chair Ms. Michelle M. Galimba, Member Mr. Holeka Goro Inaba, Member Ms. Jenn Kagiwada, Member (via videoconference from Hilo) Ms. Ashley L. Kierkiewicz, Member (via videoconference from Hilo) Ms. Heather L. Kimball, Member Mr. Dennis "Fresh" Onishi, Member Ms. Rebecca Villegas, Member (came in later) STATEMENTS FROM THE PUBLIC ON AGENDA ITEMS COMMUNI- CATIONS: Comm. 23.11: The Chair directed the Committee to proceed to the next order of business, Statements from the Public on Agenda Items. The following individuals registered to speak and came forward when called by the Chair: Jojo Tanimoto: Bill 44 (Comm. 232), in support. Lisa Lane Cardin: Res. 140-25 (Comm. 239), in support. (representing Aloha Animal Alliance) Pat Kahawaiola`a: Bill 44 (Comm. 232), in support. The Chair directed the Committee to proceed to the next order of Business, Communications. REPORT OF FUND TRANSFERS AUTHORIZED: MARCH 16 — 31 2025 From Acting Controller Wilson Crider, dated April 14, 2025. FC-10 May 6, 2025 Vote on Comm. 23.11: Mr. Inaba moved to close file on Comm. 23.11. Seconded Filed by Mr. Hustace and carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Comm. 24.10: REPORT OF CHANGE ORDERS AUTHORIZED: MARCH 16 — 31, 2025 From Finance Director Diane Nakagawa, dated April 15, 2025, transmitting the above report pursuant to Section 2-12.3 of the Hawaii County Code. Vote on Comm. 24.10: Mr. Inaba moved to close file on Comm. 24.10. Seconded Filed by Mr. Hustace and carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Comm. 73.5: MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED DECEMBER 31, 2024 From Finance Director Diane Nakagawa, dated April 4, 2025, transmitting the above report pursuant to Section 6-6.3(h) of the Hawaii County Charter. Vote on Comm. 73.5: Mr. Inaba moved to close file on Comm. 73.5. Seconded Filed by Mr. Hustace and carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Comm. 98.1: THIRD QUARTER REPORT OF PERSONS EMPLOYED UNDER A CONTRACT FOR LESS_ THAN 90 DAYS: JANUARY 1— MARCH 31, 2025 From Human Resources Director Sommer J. Tokibiro, dated April 1, 2025, transmitting the above reports pursuant to Section 2-12.5 of the Hawaii County Code. Page 2 FC-10 May 6, 2025 Motion to Close File: Mr. Inaba moved to close file on Comm. 98.1. Seconded by Ms. Villegas. CHR. KANEALI`I-KLEINFELDER: Is there any discussion, Council Members? MS. KIERKIEWICZ: Chair? CHR. KANEALI`I-KLEINFELDER: Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair Kaneali`i-Kleinfelder. Is there anyone from the administration available to speak to the Permitting Systems Optimization Manager and their role? CHR. KANEALI`I-KLEENFELDER: Not here in Kona, Council Member. MS. KIERKIEWICZ: Thank you. Anyone here in Hilo that would like to speak to the nature of this individual's work? This is the Permitting Systems Optimization Manager; a monthly salary of $8,000. We all recognize the issues that are within the permitting division section within our County. Just trying to understand what this individual is doing; if there's going to be some kind of report provided to the Council about efficiencies that are going to be made within the system? Thank you, Director. (Note: At this time, Finance Director Diane Nakagawa came forward to address the members of the Committee.) MS. NAKAGAWA: Of course. Good afternoon, Council. Diane Nakagawa, Finance Department. I think our departments just stepped out. I don't have the details on that, but I'd be happy to get that, and we can bring that back to the Council. MS. KIERKIEWICZ: Okay, great. Just an email would be wonderful to follow UP. MS. NAKAGAWA: Will do. MS. KIERKIEWICZ: I appreciate it. Thank you, Chair. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Any further discussion? Hearing and seeing none. Thank you, Director Nakagawa. Motion is on the floor. All in favor? Page 31 FC-10 May 6, 2025 Vote on Comm. 98.1: The motion to close file on Comm. 98.1 was carried by the Filed following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Comm. 118.1: THIRD QUARTER REALLOCATION REPORT: JANUARY 1— MARCH 31, 2025 From Human Resources Director Sommer J. Tokihiro, dated April 14, 2025. Vote on Comm. 118.1: Mr. Inaba moved to close file on Comm. 118.1. Seconded Filed by Mr. Hustace and carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 138-25: AUTHORIZES THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE STATE OF HAWAI`I DEPARTMENT OF TRANSPORTATION, PURSUANT TO HAWAI`I REVISED STATUTES SECTION 46-7, FOR A GRANT TO THE COUNTY OF HAWAI`I MASS TRANSIT AGENCY Allows for the receipt of $270,000 of federally -derived funds for the planning of the Pahoa Transit Hub. Reference: Comm.237 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Page 4 FC-10 May 6, 2025 Vote on Res. 138-25: Mr. Inaba moved to recommend adoption of Res. 138-25. (Approved) Seconded by Mr. Hustace and carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Res. 139-25: AUTHORIZES THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE STATE OF HAWAI`I DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT AND TOURISM Allows for the receipt of $1,500,000 of federally -derived funds for the development of the Kukuiola Permanent Supportive Housing Project in Kailua- Kona. Reference: Comm.238 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Vote on Res. 139-25: Mr. Inaba moved to recommend adoption of Res. 139-25. (Approved) Seconded by Mr. Hustace and carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Res. 140-25: APPROVES THE AWARD OF FUNDS TO ALOHA ANIMAL ALLIANCE HAWAI`I BY THE ANIMAL CONTROL AND PROTECTION AGENCY Provides $50,000 of grant funds to Aloha Animal Alliance Hawaii for their cat spay and neuter initiatives. Reference: Comm.239 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Motion to Approve: Mr. Inaba moved to recommend adoption of Res. 140-25. Seconded by Ms. Galimba. CHR. KANEALI`I-KLEINFELDER: Council Member, discussion on the resolution? Council Member Villegas, go ahead. Page 5 FC-10 May 6, 2025 MS. VILLEGAS: Yes. Thank you. I do have some questions here. And I'm wondering if Corporation Counsel Renee Schoen might be able to come up and answer some questions here? I'm sorry. I need you on the next one. I don't have questions on this one. Sorry. I'm good. I yield. It's the next one. CHR. KANEALI`I-KLEINFELDER: Okay. For Resolution 140-25, any discussion? Council Member Onishi. MR. ONISHI: I have some questions. Is Matt from Animal Control there? He's on Zoom. Okay. (Note: At this time, Animal Control Administrator Matthew Runnells came forward to address the members of the Committee.) MR. RUNNELLS: I'm here. MR. ONISHI: Okay. Good afternoon, Matt. MR. RUNNELLS: Good Afternoon. MR. ONISHI: Okay. I think your volume might be a little bit low or soft. MR. RUNNELLS: Might be my microphone. Sorry about that. Is that better? MR. ONISHI: Yeah. Perfect. Okay. So we did have a discussion and to my understanding the previous budget or two years ago budget, $150,000 was added into your budget to I guess hire or to get a vendor to do like a call station? MR. RUNNELLS: It was set aside in the budget for a contract service for spay and neuter resources or someone to basically bring all the resources into one location for people to be able to access it easily. And we did have a hard time initially finding someone that would take that initiative, and we started to run out of time within the fiscal year to be able to get that contract awarded. MR. ONISHI: Okay. Now through your discussion with these I guess proposed vendors or possible vendors, was it because of the cost that the amount wasn't enough for this yearly contract? MR. RUNNELLS: I think it was just the fact that it was a little later in the year when we initially started the discussions with them about setting up a system, you know, with something that's online portal and an online venue it takes a pretty amount of time to design it and get initiated and get it rolling down the road along with advertisements and stuff to the public. So with those initial talks of the island wide vendors or people that could possibly take on this task it was a little late in the game for this fiscal year. Page 6 FC-10 May 6, 2025 MR. ONISHI: Okay. And my last thing to you is in what account was this money put into? MR. RUNNELLS: I think it was put into contractual services. MR. ONISHI: Okay. I guess I have one more for you. But in your opinion do you feel that this money should be taken out to be provided as grants? MR. RUNNELLS: I think it's better to use the money that is set aside. I think it's a great opportunity to give to the organizations within the County that do lend a great deal of work to Animal Control and to the County and to animal services on the island. This resolution as well as the next one both cater to organizations that have great plans and are going to utilize those funds for good within the community. MR. ONISHI: And how closely do you work with these two different organizations? MR. RUNNELLS: Pretty close. Aloha Animal Alliance we've recently worked with this past year and Humane Society we've worked with for a long time. They take a good chunk of our animals that come into our facility that are adoptable animals. So we work closely with both of them. MR. ONISHI: Okay. Thank you. Is Finance Director Diane Nakagawa at the Hilo Chambers? MS. KAGIWADA: She's coming up. MR. ONISHI: Okay. Thank you. Good afternoon. You can introduce yourself. (Note: At this time, Finance Director Diane Nakagawa came forward to address the members of the Committee.) MS. NAKAGAWA: Good afternoon. Diane Nakagawa, Finance. MR. ONISHI: Okay. So Director, do you feel comfortable by moving these types of money, which is allocated for a certain purpose, to be used for grants? MS. NAKAGAWA: So, you know, as the County has transitioned to the oversight of these services we have learned and confirmed that these types of spay and neuter services are critical. And with the County taking over these services in the last couple of years, you know, it does take a while for us to get everything to get from our resources squared away and our management oversight, so in these transition times I think while we get to a fully staffed agency and things in place that there may be a need for these organizations to assist the County in critical areas that need to get done. Page 7 FC-10 May 6, 2025 MR. ONISHI: Okay. So now if we use this with grants to awarding organizations with this money wouldn't it be better to have a separate account for these purposes? MS. NAKAGAWA: So ideally, as you all know, as we go through the budget process, these would be identified early on in the year in the manner in which we would like to spend them. So as you're saying, if we program them in a certain area, ideally that's where we would like to do these types of things are made sometimes in the year just due to adjustments in time and need. But I would say if the department chooses or determines that this is the best way forward to achieve the goals that are needed, then that should be planned for. MR. ONISHI: Okay. My last thing is, as Council Members, if we find money that's not being spent in other areas of different departments are we allowed to transfer or to request that certain department to provide grant funding to certain applicants or organizations that have not really applied for them? MS. NAKAGAWA: I think that's a difficult question to answer so broadly when you're talking about every single department and their needs. I think this one is a special circumstance in which we have relied on these organizations to assist the County in these responsibilities. But I don't know if that would apply every where else. So it's just a hard one to answer in such a broad range. MR. ONISHI: Because for me it would like, okay, instead of giving grants it would be more let's do a contract with them, with this funding for a limited time. Would that be better? MS. NAKAGAWA: It is an option. You know, so currently if the organization, the department, and the agency know those specific purposes then we would go out and procure these services through our competitive process and that is, I think, like what was explained earlier, that was the intention to put it in 115; in contractual services. MR. ONISHI: Right. Okay. Okay. At this time, Chair, I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Any further discussion on Resolution 140-25? Council Member Inaba. MR. INABA: Thank you. Administrator, I'm wondering if we can get a clear breakdown of the budget for this $50,000 prior to the Council hearing? MR. RUNNELLS: You mean of what they're going to be spending it on? MR. INABA: Yes. And this is back to our same conversation about standardizing the information the Council receives especially when it comes to giving grants to nonprofits. You know, when Housing brought their homeless Page 8 FC-10 May 6, 2025 grant award recommendations to the Council, we did get detailed line items for what each of the rewards would be covering. So if you could work with the Finance Department to get that information. So we have a clear understanding of how this money is to be used and to ensure that it's in compliance with the provisions of our code, not allowing more than 10 percent to be used for administrative costs and ensuring that all costs associated with the grant are in line with public purpose. MR. RUNNELLS: Yeah. I can work with the organizations to get a list of those items to be spent on. MR. INABA: Great. And Director, the last time we amended the resolution, and we had these budget sheets as part of the exhibit, what is the direction right now for how we're going to move forward and making sure that these agreements and the grants are being spent with what is presented and represented here before the Council? Director Nakagawa. MS. NAKAGAWA: Councilman Inaba, yes. You know, we have been going through and looking at all; making it consistent in the way that these grants come before council. We were just talking about that internally with our PONC (Public Access, Open Space, and Natural Resources) grants as well. So we have not yet implemented the procedure internally so that we can make sure we're consistent. But we have been working on what that would look like to make sure that all the same information is presented to Council when these grants are moving forward. So that is something that we are working on. MR. INABA: Okay. I'll follow up with you after this. I just want to make sure we're being consistent; what's good for one department should be good for all. MS. NAKAGAWA: Yes. We appreciate that. MR. INABA: And we sent Housing through the ringer, so I just want to make sure that the same standard is being applied to Animal Control and any other department. I'll follow up offline. Mahalo. MS. NAKAGAWA: Thank you. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Galimba. MS. GALIMBA: Thank you. Yeah, I agree that we should have consistent standards. But I just wanted to speak to sort of the larger vision here, which I think Administrator Runnells eluded to and I think was this last budget or the one before that. I can't quite remember. But we really did come down or encourage Administrator Runnells very strongly to reach out to create an ecosystem around Animal Control working with other organizations in the community because it would be impossible for Animal Control to really do the kind of work out in the Page 9 FC-10 May 6, 2025 community that these organizations can do, and they already exist and want to do. So he is really following through on something that a number of us strongly encouraged him to do. So just wanted to give a little bit of background on that. CHR. KANEALI`I-KLEENFELDER: Thank you. Checking in with Hilo? Hearing none. Actually, to Director Runnells, looking at the two resolutions that are in front of us. I guess for me, and we've touched on this in our budget hearings. We increased budget for the Animal Control Agency quite substantially. But we also, you know, the community is a little mixed in there how we're doing it through the emails that I get. So as I'm looking at this and the next resolution, I'm thinking on the intention here, which is to provide funding to other organizations to the task that we cannot or are not able to do at this time. I'm kind of seeing it's a little perplexing that we've increased budget, are not able to offer services that are now actually reaching back out to existing nonprofits in the community that used to do the same work and we're asking them to do the work again through funding from the County, and it almost feels a little bit circular. So checking in with you to see, are we not able to get where we're wanting to go with the department and what we're doing to get ahead of the problem so that we're using the funds to maybe better our operations in Puna to get you folks where you need to be or if we're just overfunded to the point we have to give out grants to do the work that we're supposed to be doing? MR. RUNNELLS: Thank you for your question. We had different budget increases. One is in our S&W (Salaries and Wages). We had some reclassification of some positions that went extremely higher than what we initially planned on them being, which is one reason why the budget is a little bit increased. And to answer your question about the organizations and the services that these funds are going to help us with, those are services that, you know, we mostly deal with field services with our agency. We bring in a lot of animals, but we also encourage and promote organizations within our County to adopt those animals out. It saves our staff from having to provide the service of adoption and saves the County from having the liability of adopting out animals that may have the potential to be aggressive. Those agencies and those organizations better vet those animals to make sure that they are appropriate for the homes that they go to. And so, you know, we try to promote and encourage those organizations through our own promotion of them and, you know, with this grant money to help get some of those animals out of our facility or to help prevent animals from coming in. You know, we can't necessarily provide all the spay and neuter services within the County, but if we can encourage and promote and fund organizations that do provide that service or can help provide that service to the County then it ultimately helps our intake numbers and helps bring our numbers down overall. And so we can't necessarily provide that service on a mass scale, we can encourage the organizations that do. Page 10 FC-10 May 6, 2025 CHR. KANEALI`I-KLEINFELDER: Okay. Just checking in with you. This resolution right now, 140-25, this is specific to cat spay and neuter initiatives; is that right? MR. RUNNELLS: Yeah. CHR. KANEALI`I-KLEINFELDER: Okay. So we're only talking cats, right? MR. RUNNELLS: Cats and according Aloha Animal Alliance, the portal that they're talking about building will also assist with dog spay and neuter resources as well. CHR. KANEALI`I-KLEINFELDER: Okay. I'm looking at —I'm going to point blank you a little bit. Could we not have used this and the next resolution funds to increase Animal Control's ability to take in cats and dogs and do the spay and neutering ourselves? MR. RUNNELLS: We can to a certain degree, you know, for us to cover the entire resources that the island would need. I wouldn't say that even with the $150,000 could we necessarily cover that same costs only because we're one organization. This, you know, especially the spay and neuter resources within the island and multiple organizations that do that service. And so for us to be able to bring that all under us and we say that we can provide the same services as possibly three or four other organizations that are already doing the service and planning, it wouldn't be a realistic ask for our agency. The amount of personnel that we would need to hire to be able to provide the level of resources that four organizations that provide that currently would be more than the amount of money that's initially set aside for. CHR. KANEALI`I-KLEINFELDER: Okay. Okay. I understand that. Where is this funding coming from; is this from your general budget; is there a specific line item that you're pulling these funds from? MR. RUNNELLS: There's a specific line item under contractual services for spay and neuter resources that was set aside this last fiscal year. CHR. KANEALI`I-KLEINFELDER: Was this the increase in your budget from the 2023-2024 budget discussions for community outreach? MR. RUNNELLS: Yes. Yes. CHR. KANEALI`I-KLEWFELDER: Okay. And that was roughly, I believe if my memory is serving me correctly, that was $250,000? MR. RUNNELLS: It was $150,000. Yeah. Page 11 FC-10 May 6, 2025 CHR. KANEALI`I-KLEINFELDER: Okay. And so we didn't spend down the funds so now we're going to do grants to kind of go the other way and achieve the same goal? MR. RUNNELLS: I feel it does achieve the same goal. It just redirects it when we couldn't find a single vendor to help bring all that together. Those same funds are being utilized in the same aspect just with smaller grants to organizations that do the same services. CHR. KANEALI`I-KLEINFELDER: Okay. Okay. Thank you very much, Director. I appreciate the information. Council Member Onishi. MR. ONISHI: Thank you Chair. One last one. Matt, I have one question. Okay. So there was a representative from Aloha Alliance mentioning during her testimony about I guess enforcement, like digital services or whatever, medical supplies, and so forth. And so as you were mentioning earlier, this money or this grant that will be provided to them, like you were saying, it's about to go to a certain cause, right, I mean, like for spay and neuter, right? MR. RUNNELLS: Yes. MR. ONISHI: And they shouldn't be using it for anything else, correct? MR. RUNNELLS: That's correct. I mean it should be utilized for, you know, with this particular organization they're working on cat spay and neuter resources and, you know, all the funds should be working towards that function. MR. ONISHI: Okay. And would you know if this Animal Alliance does that in- house or they contract it out source? MR. RUNNELLS: Right now, I believe they're trying to work towards moving it all in house to where they have the resources to be able to provide that to the cat colony managers within the County. So those are resources that they're trying to take on themselves. MR. ONISHI: Okay. Thank you. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay. Any further discussion? Hearing and seeing none, motion is on the floor to forward Resolution 140-25 to Council with a favorable recommendation. All in favor? Page 12 FC-10 Vote on Res. 140-25: (Approved) The motion to recommend adoption of Res. 140-25 was carried by the following roll call vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, and Villegas — 7. Noes: Committee Member Onishi and Chair Kaneali`i-Kleinfelder — 2. Absent: None. Excused: None. CHR. KANEALI`I-KLEINFELDER: Thank you, Mr. Clerk. May 6, 2025 Res. 141-25: APPROVES THE AWARD OF FUNDS TO THE HAWAPI ISLAND HUMANE SOCIETY BY THE ANIMAL CONTROL AND PROTECTION AGENCY Provides $50,000 of grant funds to the Hawaii Island Humane Society to support off -island animal transport, on -island adoptions, and rehoming efforts. Reference: Comm.240 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Motion to Approve: Mr. Inaba moved to recommend adoption of Res. 141-25. Seconded by Ms. Galimba. CHR. KANEALI`I-KLEINFELDER: Discussion, Council Members? Council Member Villegas. MS. VILLEGAS: Yeah. I have a question on this one and perhaps, yes, Corporation Counsel Renee Schoen can help with this. Recently had some issues with basically being told that the funds that had been allocated from contingency relief to support a homeless service provider organization that utilizes funds to send people who are unhouses from out of state home, where they came from. And we've been told it doesn't align, and we can't utilize the funds for that now. And so I suppose I am confused and I'm totally in support of this and utilizing resources. I realize there are places in the mainland where you can't adopt a dog or a cat. And so we have an abundance and so rehoming them in another place. But I am confused and feel why is this okay as being identified as the public good when helping to get those who are living on our streets back where they came from not being considered the public good? (Note: At this time, Corporation Counsel Renee Schoen came forward to address the members of the Committee.) MS. SCHOEN: Good afternoon. Renee Schoen, Corporation Counsel. So if I understand you question correctly, you're looking at utilizing the funds to support Page 13 FC-10 May 6, 2025 off -island animal transport and you're equating that to the relocation of homeless individuals on this island to somewhere else? MS. VILLEGAS: We do transport. It's a reunification program, right, taking people who have found themselves living in the streets here and we do a reunification program with their families in the mainland and isn't this what the off -island animal transport equates to? MS. SCHOEN: I don't know. I don't know the specifics of this. But what I can say is that any time this body and the County looks at giving grants to nonprofits it has to ask whether or not there is a direct benefit to the public and whether it accomplishes a public purpose. So I guess if this body believes that transporting animals from this County somewhere else is a public purpose and that there's a direct benefit to the public, you know, that's for this body to decide. I think in this situation where this body has looked at for instance the homeless grants, I think there was a lot of push back on the request for travel. MS. VILLEGAS: But we passed a resolution that approved it as this body, and we passed a resolution for contingency funds to be allocated for travel for the unhoused for a family reunification program. And so I'm just trying to get a better understanding of, you know, what's what because I believe it's a public good for us to utilize public funds to ensure that people aren't living on our streets because we know the figures of what it ends up costing us in hospital bills and outreach services and all those things. Same way with creatures who don't have homes and need a safe place to live. It benefits our community as a whole for them to be homed elsewhere. MS. SCHOEN: Yeah. I understand. I mean I'd be happy to look at that resolution that was passed. MS. VILLEGAS: Because it was passed in November and I just got word that it's now being shut down and they are no longer getting the funds and the direct terminology used is that it can't be used as airfare to transport our homeless out of state. So the irony to now have this in front of us to be utilized for animals. I couldn't pass up the opportunity to ask for some clarification. Thank you for enduring my questions. MS. SCHOEN: No worries. You know, I'd be happy to look at that resolution. I wasn't here in November, but I'm just kind of reiterating the fact that it is the Council's decision as a public purpose. MS. VII.LEGAS: Sure. I'm actually really grateful you said that because we made that decision in November that it was the public purpose and its half this amount of money actually. Page 14 FC-10 May 6, 2025 MS. SCHOEN: And I'm not super familiar but my understanding is that it's an issue of travel and that there was kind of a push back by this body regarding travel for monies going to nonprofits where it was like a disproportionate amount and that's why. I don't know if we're talking apples and oranges though, so I'd better stop talking. MS. VILLEGAS: Probably advise I should take. Thank you, Corporation Counsel Schoen. Yeah, I'm in full support of this. I just want to see equitable recognition of the value of, you know, airfare is necessary for anybody to get anywhere from this island. So whether or not that's transporting people to someplace they can be safe and reducing the burden on our taxpayers for taking care of them in our health systems, very often is where they end up, and also for creatures. So thank you. I yield. CHR. KANEALI`I-KLEINFELDER: Council Member Onishi. MR. ONISHI: Thank you, Chair. That's a good one, right. We can do one for one, but the other one cannot and both are the same. Yeah, I agree with that. Matt, one question. So who authored this resolution to have Humane Society to do what is listed in the whereas? Did it come from your department or your agency or who drafted it? (Note: At this time, Animal Control Administrator Matthew Runnells came forward to address the members of the Committee.) MR. RUNNELLS: It came from our agency. We are in close contact with Humane Society trying to work with them to fund more off island transports. The available people for adoption of animals, you know, it waxes and wanes with availability of animals and availably of people to adopt. And so in those times where we find ourselves without adopters on the island, a lot of those animals end up staying in our shelters, costing the taxpayers more money with prudent resources. And so in an effort to try to get those animals off, Humane Society does have partner organizations on the mainland that take those animals from us, from our shelters, from County facilities and relocates them to facilities that have better adoption availability on the mainland. MR. ONISHI: Okay. So I'm trying to understand about this budget, that's why; the funding that was provided in this account. Because it's not being utilized in the way it was supposed to be, now you folks are looking at different options in using this funding to help with the problem that we face. MR. RUNNELLS: That's correct. MR. ONISHI: So this upcoming budget for 2025-2026, why or can your agency or department come back to the Council during budget time to readjust your Page 15 FC-10 May 6, 2025 numbers to help with providing these services that is in front of us now to be approved. Is that possible? MR. RUNNELLS: You mean to increase our capacity to do some of that in house? MR. ONISHI: Or even like how you would be providing this grant because it seems like you couldn't, with money you had gotten like what a year or two years ago, that $150,000, you're not able to contract a vendor to do what that contract was supposed to be about, right? MR. RUNNELLS: That's correct. MR. ONISHI: And so now either you or your department are moving these funds around or someone is moving these funds around to provide these services. So can you and your staff reevaluate this funding to come back during the final readings of the budget for your budget and have it specified for these uses? MR. RUNNELLS: Okay. You mean instead of using it for contractual services, use it for the grants, set it into a different account for those grants? MR. ONISHI: Yeah. Correct. MR. RUNNELLS: I can talk to Finance Director about it. You know, we were concerned with the time crunch whether or not those funds would be able to be moved out. But I assume that they can be moved into an account set up just for grants. But the way it was set up previously was under contractual services. MR. ONISHI: Okay. And then the other option is if you feel with this upcoming budget 2025-2026 that you're able to find a vendor then I would say leave it in there. But if you feel that you're not going to be able to find someone because of maybe not enough funding or, you know, you just can't find someone that can provide the services, then I would say try to see and work with Finance to break it up apart. MR. RUNNELLS: Okay. Yeah, a agree. I mean, that task of organizing this, you know, as far as a spay and neuter hub service is a big ask for any organization. To work with all of the given organizations in the County that provide that service and get them to all organize in one, you know, maintained hub that everybody communicates through, it's a big ask for organizations that won't even work together right now. And so that was one of the challenges that we had with that for this past fiscal year was trying to find an organization that could bring all those other organizations together with that service. And so, we can continue to try for this next fiscal year and see if we can find an organization that'll do that. Page 16 FC-10 May 6, 2025 MR. ONISHI: Okay. Thank you. And the last thing for these nonprofit organizations, do they have a process where it was opened up to all nonprofits that provide these services? MR. RUNNELLS: I mean, those were the organizations that are the largest for our agency to be able to provide these services. Those are the ones that we currently utilize and are partners within our agency. MR. ONISHI: Okay. Okay. Thank you. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Any further discussion? Hearing and seeing none, motion is on the floor. All in favor? Vote on Res. 141-25: The motion to recommend adoption of Res. 141-25 was (Approved) carried by the following roll call vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, and Villegas — 7. Noes: Committee Members Onishi and Chair Kaneali`i-Kleinfelder — 2. Absent: None. Excused: None. CHR. KANEALI`I-KLER MELDER: Thank you. Mr. Clerk, Bill 44 please. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Bill 44: AMENDS CHAPTER 19, ARTICLE 10, SECTION 19-89, OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO EXEMPTIONS FOR CERTAIN HAWAIIAN HOMES PROPERTY, AND OTHER AGENCIES Exempts the value of buildings on Hawaiian Home Lands homesteads from property taxes and repeals references to outdated State law. Reference: Comm.232 Intr. by: Council Member Inaba and Council Member Hustace Motion to Approve: Mr. Inaba moved to recommend passage of Bill 44 on first reading. Seconded by Mr. Hustace. CHR. KANEALI`I-KLEINFELDER: Council Member Inaba. Page 17 FC-10 May 6, 2025 MR. INABA: Thank you, Chair. This is a piece of legislation as was read in that Council Member Hustace and I worked on together, one that I believe was a topic of concern for residents in his district and definitely in mine as well. The main difference here as being proposed in the bill is to change the word exclusive of buildings to the word inclusive of buildings. A very pretty straightforward easy change that would exempt Department of Hawaiian Home Land (DHHL) leases here in our County from taxes. They would still need to pay the minimum tax. We have attached in Communication 232.1 a comparison of the real property tax policies at the different counties. Kauai County doesn't tEk them Ct Ell; City Ehd County of Honolulu has a minimum tax, which is what we're proposing here, and then on Maui it's a little more complicated. But essentially everyone in our opinion should contribute something so that's why we got the minimum tax rather than going to Kaua`i's zero tax. We have support from Chair Watkins from the Department of Hawaiian Home Lands and various community associations from Waimea to Keaukaha to La`i`6pua here in Kona. Ask for your support and I'll hand it over to Council Member Hustace to chime in on anything I might've missed. MR. HUSTACE: Thank you, Chair. Thank you, Council Member Inaba, and I'm grateful for the opportunity to co-sponsor this with you. You definitely hear in the conversations in Puukapu, Waimea Nui, the homesteaders in Waimea community about bringing parity with the counties. So that really is the goal beyond the relief that we will see and the relief that they will see with this going forward. So grateful for your support and consideration for this as we bring that parity across the counties. Mahalo. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Inaba. MR. INABA: Sorry. Just to get ahead of the question, the financial impact to the County should this bill be approved would result in a reduction of revenue in the amount of $1.4 million. We have Administrator Lisa Miura and Assistant Administrator Keita Jo here in Kona. Administrator Miura in Hilo. I would like to call on Administrator at this time, if you have any comment on this bill. (Note: At this time, Real Property Tax Administrator Lisa Miura Assistant Administrator Keita Jo came forward to address the members of the Committee.) MS. MIURA: Aloha and good afternoon. Thank you for letting me speak. My name is Lisa Miura, Real Property Tax Administrator. We'd just like to say we went over the analysis and the information and from the Real Property Tax Policy standpoint, it does make it more fair and in line with the other counties. And I did read all of the testimonies and the opposition, and the one in opposition, I just wanted to share that unless DHHL provides us with a route slip then we cannot tax any properties or put it on our tax roll because up until then it will be under Page 18 FC-10 May 6, 2025 the State of Hawaii Department of Hawaiian Home Lands. But I am here if you have any questions. I know it's easier sometimes if Council is in Kona to ask somebody sitting there. So Keita Jo is more than happy to respond as well. MR. INABA: Thank you, Administrator. Mr. Jo, anything to add at this time? MR. JO: Keita Jo, Assistant Real Property Tax Administrator. I would just add that going through this process allowed us to review our rules in regard to Department of Hawaiian Home Lands properties. And, you know, leaning this direction also increases equity in that we discovered that there is a percentage of properties, no matter how much we communicate, there's an opportunity for lessees to receive a homeowner's exemption to reduce their tax liability. But there still are a number of individuals that haven't taken us up on that. So by virtue of this legislation, it does improve the equity in that regard, where everybody will receive a similar benefit. MR. INABA: Thank you very much, Assistant Administrator. Happy to take questions from the body at this time. Thank you, Chair. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Villegas. MS. VILLEGAS: Yeah. I will humbly admit, I'm not sure if I'm the only one, but I don't have any Hawaiian Home Lands in District 7. So I'm going to differ to the wisdom of the makers of this and appreciate the testimony in support for it. I appreciate the equity and at a time when our Native Hawaiian people struggle already with some of the other circumstances on what is or was their homeland. 1 think that this is a step in the right direction. So thank you to the tax office for continuing to endure all of the changes but appreciate you guys and I think that this is a step in the right direction. I just have to say it for diversity, equity and inclusion and the way we manage our taxes in this County. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. MS. KAGIWADA: Chair? CHR. KANEALI`I-KLEINFELDER: Council Member Kimball. MS. KIMBALL: Thank you. So I just want to dive into the numbers. I'm teasing James; I decided that's his catch phrase. Assistant Administrator, do you recall actually looking at how many parcels are currently at the minimum tax in Hawaiian Homes and then how many parcels are included in this number that would now be modified? MR. JO: Yeah. So currently when you take a look at those in the homeowners' tax classification, 29 percent of those individuals are at minimum tax. So that's somewhere around the range of about 400 if I were to guess. Page 19 FC-10 May 6, 2025 MS. KWBALL: Okay. MR. JO: So this would be increasing it to around 2,098. MS. KIMBALL: I want to make sure. These are only the ones that currently qualify for the homeowner's exemption, not any property that's being used for like commercial or anything like that? MR. JO: That is correct. MS. KIMBALL: Okay. Alright. Alright, yeah, thank you. But thanks for the, first of all, the clean up on this. I was looking at Chapter 234 and it doesn't exist anymore. I'm happy to support this, you know, mainly for the parity with the other communities. But I think, you know, just going forward based on the budget presentation we had from Finance Director and our cash flow outlook for the next few years, a million and a half here and a million and a half there is going to add up. So I just want to restate I think we do have to be thoughtful about not cutting a million here or a million there in too many places. But I think this is one of the places that is the right place to do so. So thanks. I yield. CHR. KANEALI`I-KLEWFELDER: Thank you. Checking with Hilo before I come back to Council Member Hustace. MS. KAGIWADA: Yes. Yes, please. CHR. KANEALI`I-KLER*MLDER: Council Member Kagiwada. MS. KAGIWADA: Thank you. I totally support this because of the fairness issue and the parity issue. I do have concerns about our budget going forward and I'm just wondering if the makers thought about or considered or yeah, are we going to be making this up in any way? I realize that's kind of out of the scope of what we're talking about here, but I do have concerns about that. But like I said, I'm happy to support this. I do think in all fairness it's what we should do as a County, but I am very concerned going forward given all the information that we've been given about what the next five to ten years looks like as far as our budgets go. Yeah. I hope that we can address this going forward. Thanks. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Hustace. MR. HUSTACE: Thank you, Chair. Thank you, Council Member Kagiwada, for your question. I'll try to answer it a little bit because it's definitely something I thought about where we all pay into the services across the County, you know, in looking at all the counties. And there's some testimony on the model presented on Kauai County, and I just want to mahalo the Legislative Research Branch for Page 20 FC-10 May 6, 2025 the research on this to really show that baseline across all the counties and really provide everyone kind just an analysis of how the counties do it. So kind of going to that zero; in the conversations with community, going to zero was one of those things that they were aware of for Kauai County. But, you know, realizing that we are paying for the services and that we're all pitching in to these things, you know, that was the reason that we kind of decided to stay at the minimum property tax at least to cover some of the expenses there. As we dove into the numbers, you know, we had some of the conversations with Real Property Tax about some of the delinquency issues as well, and this does not negate any of the delinquencies that are out there. So that's still a conversation that we have to have with DHHL. And Council Member Kimball, about your question on the commercial properties. You know, this is not included in that as you clarified there. We do have a big delinquency on our commercial licensees. So that's still an ongoing conversation we need to have with Department of Hawaiian Home Lands. So that's something that we need to resolve and that's still some money that is technically owned to the County. So that's something that we need to work together on. But yeah, so I just want to mahalo you for your thoughts on this and really providing the relief to our homestead community. So, mahalo. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay. I really appreciate this bill in finding such a simply way of creating equity in our community specifically with Hawaiian Home Lands. So kudos to the makers. For the Director for Real Property Tax, I believe I heard you say this is a $1.4 million expected reduction in property taxes, Ms. Miura? MS. MIURA: Hi, sorry. I believe Council Member Inaba said that, but I can confirm that is correct. CHR. KANEALI`I-KLEINFELDER: Okay. Do you have a number, Ms. Miura? MS. MIURA: It is $1.44 million. So he's correct. CHR. KANEALI`I-KLEINFELDER: So about a million and a half? MS. MIURA: Yes. CHR. KANEALI`I-KLEINFELDER: In property tax reductions if the bill were to proceed? MS. MIURA: I'm sorry. If the bill was to proceed? Yes. CHR. KANEALI`I-KLEINFELDER: If the bill was to pass. Page 21 FC-10 May 6, 2025 MS. MIURA: Yes. CHR. KANEALI`I-KLEINFELDER: Okay. I feel like I'm having a deja vu to two weeks ago, having the same discussion. So it's good to hear that this one won't break the bank unlike the other bill. I find that interesting to say the least. But in this case, I do feel that the equity being provided to the community is worthwhile. I'll be supporting the measure. That was for the Finance Department. Mr. Onishi, you have a comment? MR. ONISHI: Yeah. Thank you, Chair. CHR. KANEALI`I-KLEINFELDER: Thank you. MR. ONISHI: I just wanted to make a comment about how we're getting $10.5 million for homelessness out of the property tax, right, revenue. So by giving this exemption to our residents on DHHL properties, I don't see any problem with that. It's such a manini of percentage that we're talking about. Thank you. CHR. KANEALI`I-KLEINFELDER: Thank you very much, Mr. Onishi. I agree. Such a manini percentage. Thank you. Ms. Galimba, go ahead. MS. KAGIWADA: Administrator has something to add when you get a chance, Chair. CHR. KANEALI`I-KLEINFELDER: Thank you. MS. MIURA: Is now, okay? MS. GALIMBA: Go ahead, Administrator. MS. MIURA: Sorry. I just wanted to add that we didn't get to talk about the implications on the staff. Currently, the way the bill is written it would have less work on the staff. That's not a reason to support or oppose a bill; I realize that. But I just wanted to share, it does not require additional staff because staff will not be chasing down homeowner exemptions anymore. It will be automatic. So it actually is less work on our team. Thank you. CHR. KANEALI`I-KLEINFELDER: Thank you, Ma'am. Council Member Galimba. MS. GALIMBA: Thank you. I just had a question more broadly. I'm not sure who would answer it, so I'll just put it out there and maybe Corporation Counsel or it could be Council Member Inaba who could answer this. But I was wondering on the underline exemption of the land and the Hawaiian Home Land's land, is it because it is a federal program that the lands were —Prince Kuhio went Page 22 FC-10 May 6, 2025 to congress and got this program started, is it because it's not County land in some legal sense or is it another reason? MR. INABA: I'll start off by saying I'm not an expert at the Hawaiian Homes Commission Act. We do have provisions that exempt the land currently and I believe the Commission Act exempts from all property tax for the first seven years. So there are provisions within the act for a certain period. What we're doing here is just saying that it's in perpetuity and any lands within the trust are only subject to minimum tax. So it doesn't matter if there's a home or no home, any parcel under DHHL for homestead would be the minimum tax for our County. MS. GALIMBA: Thanks. Yeah, I am supportive. I was just curious on that sort of underline legal status, and I can pursue it later. Thanks. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Villegas. MS. VILLEGAS: I just have one quick question I'm hoping one of the makers can answer for me. What would be an example of a commercial delinquency? MR. JO: So the Department of Hawaiian Home Lands will execute leases. If I were to give you a real -life example, Prince Kuhio Mall. MS. VILLEGAS: The dump, the airport, the wastewater. MR. JO: Yeah. Yeah. So those properties are not excluded from real property taxation. They're taxed just like any other parcel when a lease is executed to a commercial entity. MS. VILLEGAS: Are they delinquent? MR. JO: We do have some delinquencies with regard to our commercial properties. MS. VILLEGAS: Interesting. Get `em. MR. JO: We try. MS. VILLEGAS: I yield. CHR. KANEALI`I-KLEWFELDER: Thank you. Okay. Any further discussion on Bill 44? Hearing and seeing none, motion is on the floor to forward Bill 44 to Council with a favorable recommendation. All in favor? Page 23 FC-10 May 6, 2025 Vote on Bill 44: The motion to recommend passage of Bill 44 was carried by the (Approved) following voice vote: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kaneali`i- Kleinfelder — 9. None. None. None. CHR. KANEALI`I-KLEINFELDER: Bill 48, please. Bill 48: AMENDS ORDINANCE NO.24-32, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR ENDING JUNE 30, 2025 Appropriates revenues in the Federal Grants — Federal Transit Administration Section 5304 Formula account ($270,000); and appropriates the same to the Federal Transit Administration Section 5304 Formula account, to be used for the planning of the Pahoa Transit Hub. Reference: Comm.237 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Vote on Bill 48: Mr. Inaba moved to recommend passage of Bill 48. (Approved) Seconded by Mr. Hustace and carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Bill 49: AMENDS ORDINANCE NO.24-32, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR ENDING JUN_ E 30, 2025 Appropriates revenues in the Federal Grants — 2025 Pathways to Removing Obstacles Housing account ($1,500,000); and appropriates the same to the 2025 Pathways to Removing Obstacles Housing account, to be used for the development of the Kukuiola Permanent Supportive Housing Project in Kailua-Kona. Reference: Comm.238 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Page 24 FC-10 Motion to Approve: May 6, 2025 Mr. Inaba moved to recommend passage of Bill 49 on first reading. Seconded by Ms. Villegas. CHR. KANEALI`I-KLEINFELDER: Any discussion? MS. VILLEGAS: Chair? CHR. KANEALI`I-KLEINFELDER: Council Member Villegas. MS. VILLEGAS: Just want to throw it in there that we are deeply excited and grateful for the forward momentum and movement of the Kukuiola Project and really looking forward to that becoming available to provide homeless services on the west side. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Anything further? Hearing and seeing none, motion is on the floor to forward Bill 49 to Council with a favorable recommendation. All in favor? Vote on Bill 49: The motion to recommend passage of Bill 49 was carried (Approved) by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kdneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Bill 50: AMENDS CHAPTER 19, ARTICLE 11, SECTION 19-90, OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO REAL PROPERTY TAXES Changes the required appropriation of residential tier two property tax revenue for housing and homelessness from a fixed proportion of 75 percent to a fixed amount of $9,000,000. Reference: Comm.241 Intr. by: Council Member Kagiwada and Council Member Inaba Motion to Approve: Ms. Kagiwada moved to recommend passage of Bill 50 on first reading. Seconded by Mr. Inaba. CHR. KANEALI`I-KLEINFELDER: Council Member Kagiwada, go ahead. MS. KAGIWADA: Thank you, Chair. Yes. Happy to have worked on this pretty simple bill with Chair Inaba. Basically, after we had some of those Page 25 FC-10 May 6, 2025 discussions about the housing and homelessness funds a couple things came out of that. One is that it seemed like OHCD (Office of Housing and Community Development) would like to be able to not have the organizations who are receiving funds have to spend every penny if something were to happen like they couldn't get enough staff to do the program they had hoped to do but instead have that money come back into the same fund to be used in future years. And so that is the second part of this saying any remaining balance collected pursuant to this subsection at the end of the fiscal year shall be designated for this purpose, so just staying with the housing and homelessness fund. And then the other one was just simply trying to give OHCD and the organizations that are involved with this funding a little more stability and understanding of what would be coming every year. So instead of doing the 75 percent, which could greatly fluctuate and may also get really large and then drop, we are putting in here to change that to no less than $9 million, which means Council could decide on a flush year; they want to do more, or if there's something going on where we feel like there needs to be more funding for that, we could decide on going over the $9 million. But that $9 million is that kind of target number that OHCD can rely on and work with so that they kind of have an ongoing understanding of what they might be receiving. So that is basically it and I'll turn it over to my colleague to add anything. Thank you. I yield. CHR. KANEALI`I-KLER*ELDER: Thank you. Council Member Inaba. MR. INABA: Thank you. I think I want to just highlight and emphasize the importance of transitioning away from a percentage especially when we are dealing with our property tax rates should anyone on the Council ever choose to amend those rates, we have certain categories in our budget or in our real property tax that we know take certain percentages; emergency fund, PONC, PONC maintenance, and it's kind of a headache. I would say if we try to amend our real property this is one of those areas that also causes a problem and it's another consideration we have to try and equate for when we're dealing with our real property tax rate adjustments. So to set that certain amount, and as we know when we passed this bill three years ago, the amount is significantly different than what we're working with now. So to provide that consistency as Council Member Kagiwada pointed out so the fund isn't a runaway fund that, you know, Housing is always almost chasing to try and make sure they're able to spend those funds. This is an attempt to provide that consistency. And again, should the need in a specific budget year be more than $9 million, nothing stops either the administration or the Council from appropriating more than $9 million. And again, this section and this funding is still sunset June 30, 2027, and I think that might be, you know, we'll be considering what to do after that. So we haven't changed that part of the sections, just specifically the amount and making sure that any unspent funds come back to this account for this purpose. So I ask for your support and I'm happy to take any questions. Mahalo. Page 26 FC-10 May 6, 2025 CHR. KANEALI`I-KLEINFELDER: Thank you. Council Members? Council Member Kimball. MS. KIMBALL: Yeah, thank you. Thank you both for putting this together. Just a minor suggestion with respect to Number 4; no less than 75 percent being struct and adding in $9 million. It's unlikely but it is possible that there's a scenario where we don't hit $9 million in that. And so I would say either all of the funds collected or $9 million, whichever is less or wait, yeah, whichever is less. Yeah, that's correct. Just to account for that possibility that wouldn't actually collect the full $9 million from that class. Just a thought. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Galimba. MS. GALMMA: Basically I agree. It is unlikely but if we don't say that then we could, in that situation, we'd kind of be like, so where's the balance going to come from. So just to not get us into an awkward situation that would be I think a good idea. CHR. KANEALI`I-KLEINFELDER: Thank you, Council Member Galimba. Council Member Onishi. MR. ONISHI: Let's see. I like that but also wouldn't this body have control on like I guess say like next year, something goes wrong, this body could rescind what we have here, correct? Mr. Inaba or Mr. Hustace. MR. INABA: I don't think anything would stop this body from repealing a bill that we pass. And then we do know also and maybe this is to adjust some of the concerns just shared. I don't think in the next two years that this funding is guaranteed that we're going to see less than $9 million. So we do just have a two-year window we're working with here. So for us that wasn't a concern, but I do understand and hear what the concern is. MR. ONISHI: Okay. For me, I would rather have it that we don't have a set date, and we go year by year and that would be better based on what kind of revenues we collect. So that might be something to think about. Thank you. CHR. KANEALI`I-KLEINFELDER: Thank you. Hilo? MS. KAGIWADA: Yeah. Thank you, Chair. Just to respond to Council Member Onishi's suggestion I would just say one of the things we were really, based on the discussions we had in Council a while ago with OHCD, we were trying to get away from the not knowing year by year what was going to happen and that was one main reason we changed the 75 percent to the no less than $9 million. So I would be concerned if we had something written where every year we would be reconsidering how much and if we'd be putting anything Page 27 FC-10 May 6, 2025 towards this housing and homelessness fund would be very destabilizing and very hard to plan and look down the road. So that's just my thought on that. But yeah, agree with Council Member Inaba that, you know, in two years we're going to need to really dive into this further and see where we're at and see what direction we want to go. So I think that's a really good opportunity for everybody to bring their best ideas forward and really work together to come up with the next phase. Thank you. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay. Seeing and hearing none. I agree. I'm looking for what happens if there is less revenue than $9 million. Understanding that probably won't happen in the next two years but also thinking ahead to a Council that may enable this to go on longer because this fund has been used as being utilized to good. So with that in mind, appreciate the comments to date and look forward to seeing what happens at our next Council meeting. To the main motion, Council Members, seeing no further discussion. Bill 50 with a favorable recommendation being forwarded to Council. All in favor? Vote on Bill 50: The motion to recommend passage of Bill 50 was carried (Approved) by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. ADJOURN- MENT: Approved: Mr. Matt Finance ( Iffl-NA,a CHR. KANEALI`I-KLEINFELDER: That brings us to the end of our agenda. There being no further business on our agenda today, Chair Kaneali`i-Kleinfelder adjourned the meeting at 2:25 p.m. Thank you very much. ;i-Kleinfelder, (Date) Page 28