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HomeMy WebLinkAboutMIN COUNCIL 2025-05-21 2024-2026 Hawaii County Council 131h Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii May 21, 2025 INVOCATION: Pastor John Endriss of Engage Church Hilo gave the morning's invocation. CALL TO The regular meeting of the Hawaii County Council was called to order at ORDER: 9:06 a.m., in the Council Chambers, Hilo, by Mr. Holeka Goro Inaba, Chair. ROLL CALL: Present: Mr. Holeka Goro Inaba, Chair Mr. Dennis "Fresh" Onishi, Vice Chair Ms. Michelle M. Galimba, Member Mr. James E. Hustace, Member Ms. Jenn Kagiwada, Member Mr. Matt Kaneali`i-Kleinfelder, Member Ms. Ashley L. Kierkiewicz, Member Ms. Heather L. Kimball, Member Ms. Rebecca Villegas, Member (via videoconference from Kona; came in later) PLEDGE OF The Chair directed the Council to the next order of business, Pledge of ALLEGIANCE: Allegiance. (At this time, County Clerk Jon Henricks led the Council in the Pledge of Allegiance.) PETITIONS, The Chair directed the Council to proceed to the next order of business, Petitions, MEMORIALS, Memorials, Certificates of Merit, and Expressions of Condolence. CERTIFICATES OF MERIT, AND (Note: At this time: EXPRESSIONS OF 1) Ms. Kierkiewicz and Ms. Kagiwada presented Certificates of Merit to CONDOLENCE: Senaka Reddy and Keoni Randolph for qualifying for the National Speech and Debate Association Tournament occurring in Des Moines this summer; 2) Mr. Inaba presented a Certificate of Merit to Hawaii Fire Department for the 2025 EMS Appreciation Week occurring May 18-24, 2025; 3) Mr. Inaba presented the May 2025 Haweo Award to Firefighter Brian Wilson of the Hawaii Fire Department; 4) Ms. Kagiwada presented Certificates of Merit to members of the Viks Queens, Hilo High Girls Flag Football Team in recognition of an undefeated season; and Hawaii County Council-13 May 21,2025 5) Ms. Kierkiewicz presented a Certificate of Merit to Susie Osborne in recognition of her involvement in Kua O Ka La New Century Public Charter School and community.) STATEMENTS The Chair directed the Council to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: The following individuals registered to speak and came forward when called by the Chair: Linda Sefo: Res. 179-25 (Comm. 285), in support. (representing Job Challenge Academy) Chanyn Tancago: Res. 179-25 (Comm. 285), in support. (representing Job Challenge Academy) Kaimana Billaber-Nagle: Res. 179-25 (Comm. 285), in support. Daisha-lyn Kukona-Pacheco: Res. 179-25 (Comm. 285), in support. Kah6kupa`iwa Avilla: Res. 179-25 (Comm. 285), in support. K. T. Cannon-Eger: Res. 140-25 (Comm. 239), comment. (representing Friends of (See Comm. 239.11) Lili`uokalani Gardens) Mark Sidmore: Bill 47 (Comm. 236), in opposition. (See Comm. 236.88) Susie Osborne: Bill 40 (Comm. 207), in support. (representing Kua O Ka La New Century Public Charter School) Kalena Blakemore: Bill 40 (Comm. 207), in support. (representing Ho`oulu-Lahui) Elyse Stevens: Res. 145-25 (Comm. 245), comment. Greg Owen: Bill 47 (Comm. 236), comment. Martina Wing: Bill 47 (Comm. 236), in opposition. (See Comm. 236.116) Page 2 Hawaii County Council-13 May 21,2025 Stephanie Donoho: Bill 47 (Comm. 236), in support. (representing Kohala Coast Resort (See Comm. 236.106) Association) Ashley Robinson: Bill 47 (Comm. 236), comment. Mackenzie Chase: Bill 47 (Comm. 236), in support. (representing Expedia Group) (See Comm 236.71) Momi Tong: Res. 176-25 (Comm. 280), in support. (representing Neighborhood Place of Puna) Christian Baker: Bill 47 (Comm. 236), in opposition. Kali Watson: Bill 44 (Comm. 232), in support. (representing Department of (See Comm. 232.20) Hawaiian Home Lands) Minnie Cain: Res. 176-25 (Comm. 280), in support. (representing Neighborhood Place of Puna) Lauren Foo: Res. 140-25 (Comm. 239), in support. (representing Aloha Animal Alliance) Pat Kahawaiola`a: Bill 44 (Comm. 232), in support. (representing Komike O Kupuna (See Comm. 232.21) Ainahou Pulapula) Change Order As directed by the Chair and with no objection from the Council Members, the of Business: following item was taken out of order: Res. 179-25: RECOGNIZES THE SECOND GRADUATING CLASS OF THE HAWAI`I NATIONAL GUARD JOB CHALLENGE ACADEMY LOCATED AT THE KEAUKAHA MILITARY RESERVATION IN HILO, HAWAI`I Recognizes the achievements of 13 graduates of the Job Challenge Academy, a career-based program. Reference: Comm. 285 Intr. by: Council Member Kimball Waived: GOEAC Motion to Approve: Ms. Kimball moved to adopt Res. 179-25. Seconded by Ms. Kierkiewicz. Page 3 Hawaii County Council-13 May 21,2025 CHR. INABA: Council Member Kimball. MS. KIMBALL: Thank you. First, I just want to start by acknowledging the great job that those of you who came up and testified did today. That was brilliant and really a culmination of all the time that we've spent together. So, just to share with everybody, when the Job Challenge Academy opened, I talked to Director Proctor and said, "You know, we have jobs in the County. We care about leadership of youth and the potential for folks to run for office or serve on boards and commissions. Why don't we work together and do a pilot civics training program?" And so we've met together five times. The first time, we talked about the structure of government, the different authorities of the different levels of government: State House, County. And we did a simulation of parliamentary procedures on "Should we move the rock?" question. They did a great job. You remember that? That was pretty fun? The second meeting that we had, they came and watched a session here. They had a little form to fill out and observed all the testimony. It was particularly interesting because we had the ICE(Immigration and Customs Enforcement), HPD (Hawai`i Police Department)resolution before us, and you guys had a lot of questions about that. I want to mahalo the Mayor, Managing Director Brilhante, and Micah Alameda who did a great job with them sharing about the Executive Branch, the opportunities of working in government, serving on boards and commissions. What I really liked about their presentation is all of them really spoke to the heart about what public service means. And I think you guys all got an understanding of the value of having a role in a public service capacity. And then we had Council Member Kierkiewicz provide a presentation on public speaking and what it's like to run for office, and just share some of her experiences. I hope you'll tell us more about that, but I think that went really well. And then, of course, today is the culmination for them to come and testify on this resolution acknowledging their graduation, which will happen on the 12�'. I just really want to congratulate you for participating in this pilot project. I hope to get some feedback from you on how you think it went, and what we can do to make it even better next time. But I really enjoyed working with all of you, getting to know you a little bit. And again,just a great job. And thank you for the hard work that you've put in so far. Congratulations on your graduation. I just see so much potential in you folks. I know you're all going to do great things. So I hope for everyone's support on this resolution. Mahalo. CHR. INABA: Thank you, Council Member Kimball. Council Member Kierkiewicz. Page 4 Hawaii County Council-13 May 21,2025 MS. KIERKIEWICZ: Thank you, Chair. Thank you, Council Member Kimball, for your leadership on this. I think it was a fantastic idea to connect with the `opio in the Job Challenge Academy and provide them this opportunity to not just learn more about government, but how to get engaged in government, how to get engaged in community. I had the opportunity to connect with these bright young people. I have to say I was really impressed, spending that time with all of you, getting to know you a bit more. And then today, hearing more about your individual mo`olelo, especially the sis from Lahaina, who I think was one of the most quiet in the class and had so much mana`o and wisdom to share. And I think one of the testifiers mentioned it's not where you come from or what's happened to you. It's how you move forward in life and in those situations. So please know that we are so proud of each and every one of you, how much you've overcome and the perseverance that you have about living life on your terms and pursuing your passions. I'm really grateful that this program is here on Hawaii Island, so it can give youth a chance to pursue lives where you are contributing members of our community. So congratulations and mahalo for being so engaged. I yield. CHR. INABA: Thank you, Council Member Kierkiewicz. Vice Chair Onishi. MR. ONISHL Thank you, Chair. I just want to say, and one of the testifiers mentioned about your second chance, and that is great to see you folks succeed. And we cannot be giving up as government officials, leaders out there. We need to always be helping and supporting you guys. But also I want to thank the program director Proctor and also deputy program director Spray. With your guys' leadership and your whole staff, without you guys this would never happen. So thank you very much. CHR. INABA: Thank you, Vice Chair Onishi. With that, yes, congratulations. And my apologies for misstating the program name earlier. Whether you folks remain here on Hawaii Island or for those who are from off island,please use all of us on the Council as a resource to connect you with our connections across the State to ensure your continued success and participation as engaged and valuable members of our society. So congratulations to you all. All those in favor of approving Resolution 179-25, please say "aye." Page 5 Hawaii County Council-13 May 21,2025 Vote on Res. 179-25: The motion to adopt Res. 179-25 was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kierkiewicz, Kimball, Onishi, and Chair Inaba—7. Noes: None. Absent: Council Members Kaneali`i-Kleinfelder and Villegas —2. Excused: None. CHR. INABA: Congratulations. We're going to take a quick, actual ten-minute recess for a photo and restroom break. We'll be back at 10:50. Recess: At 10:39 a.m., the Chair called for a recess. Reconvene: The meeting reconvened at 10:51 a.m. Return to Order The Chair directed the Council to return to the order of business. of Business: APPROVAL The Chair directed the Council to proceed to the next order of business, Approval OF MINUTES: of Minutes. Chair Inaba announced that the Minutes of February 19 and March 19, 2025, were approved. REPORTS: The Chair directed the Council to proceed to the next order of business, Reports. GOEAC-41 NOMINATION OF JOHN T. KIMURA TO THE BOARD OF APPEALS (Comm. 269): Requires Council Confirmation by: May 31, 2025 (Section 134(k), Hawaii County Charter) Vote on GOEAC-41: Ms. Kimball moved to adopt Governmental Operations and (Adopted) External Affairs Committee Report No. 41. Seconded by Ms. Galimba and carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kierkiewicz, Kimball, Onishi, and Chair Inaba—7. Noes: None. Absent: Council Members Kaneali`i-Kleinfelder and Villegas —2. Excused: None. Page 6 Hawaii County Council-13 May 21,2025 (Council Member Kagiwada spoke in favor of the appointment.) ORDER OF The Chair directed the Council to proceed to the next order of business, Order of RESOLUTIONS: Resolutions. (Note: Items in this category were taken up previously, out of order.) Res. 137-25: REQUESTS THE DEPARTMENT OF WATER SUPPLY TO DEVELOP AND MAINTAIN AN ONLINE SYSTEM THAT DISPLAYS GENERAL WATER AVAILABILITY COUNTY-WIDE, INCLUDING NUMBER OF UNITS, ACTIVE COMMITMENTS, AND DEVELOPER AGREEMENTS Creates an online system hosted and maintained by the Department of Water Supply that would provide access to reliable, transparent, and up-to-date information about water availability for informed decision-making and to support the County's long-term goals for sustainable developments and water resource management. Reference: Comm. 233 Intr. by: Council Member Inaba Approve: PCENRM-1 Motion to Approve: Ms. Kierkiewicz moved to adopt Res. 137-25 and Policy Committee on Environmental and Natural Resource Management Committee Report No. 1. Seconded by Mr. Hustace. CHR. INABA: Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. I just want to mahalo you for your leadership and diligence on this particular issue and collaboration with the Department of Water Supply. We had a really robust conversation in Committee, and really am excited about your folks' investment in creating this online tool that will be a really valuable source of information for us as Council Members and future councils and administrations, as we make decisions about where to put housing and other developments, because it all comes down to do we have sufficient water. So thank you all for your hard work. I yield. CHR. INABA: Thank you, Council Member Kierkiewicz. Any further discussion? Seeing none, thank you to the Department of Water Supply for being here today if there were any questions. All those in favor of approving Resolution 137-25, please say "aye." Page 7 Hawaii County Council-13 May 21,2025 Vote on Res. 137-25: The motion to adopt Res. 137-25 and Policy Committee on (Adopted) Environmental and Natural Resource Management Committee Report No. 1 was carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kierkiewicz, Kimball, Onishi, and Chair Inaba—7. Noes: None. Absent: Council Members Kaneali`i-Kleinfelder and Villegas —2. Excused: None. 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) Approve: FC-42 Motion to Approve: Ms. Kierkiewicz moved to adopt Res. 138-25 and Finance Committee Report No. 42. Seconded by Ms. Kagiwada. CHR. INABA: Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. Just wanting to note that Acting Administrator for MTA (Mass Transit Agency) Zach Bergum is here. I don't see any real discussion that happened during Committee, but I just want to confirm that this funding, $270,000, will support the continued planning and design of the Pahoa Transit Hub, which will also include a state library. So thank you for your work to secure these funds and continue to make this project a reality. I appreciate it. I yield. CHR. INABA: Thank you. All those in favor of approving Resolution 138-25, please say "aye." Page 8 Hawaii County Council-13 May 21,2025 Vote on Res. 138-25: The motion to adopt Res. 138-25 and Finance Committee (Adopted) Report No. 42 was carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kierkiewicz, Kimball, Onishi, and Chair Inaba—7. Noes: None. Absent: Council Members Kaneali`i-Kleinfelder and Villegas —2. 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) Approve: FC-43 Vote on Res. 139-25: Ms. Kierkiewicz moved to adopt Res. 139-25 and Finance (Adopted) Committee Report No. 43. Seconded by Mr. Hustace and carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kierkiewicz, Kimball, Onishi, and Chair Inaba—7. Noes: None. Absent: Council Members Kaneali`i-Kleinfelder and Villegas —2. 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) Approve: FC-44 (Note: Comm. 239.1, from Council Member Holeka Goro Inaba dated May 21, 2025, transmitting proposed amendments to Res. 140-25, was circulated.) Page 9 Hawaii County Council-13 May 21,2025 Motion to Approve: Ms. Kierkiewicz moved to adopt Res. 140-25 and Finance Committee Report No. 44. Seconded by Ms. Kagiwada. Motion to Amend: Mr. Onishi moved to amend Res. 140-25 with the contents of Comm. 239.1. Seconded by Ms. Kierkiewicz. CHR. INABA: Vice Chair Onishi. MR. ONISHL I understand this is a request by the agency? CHR. INABA: It's my amendment. I'll just explain. There were some concerns about not having enough information at Committee, so this provides the exact breakdown of the $50,000 award being provided to the Hawaii Island Humane Society. This was collaborated on with the Finance Department and the animal control agency. I ask for your support. All those in favor of amending Resolution 140-25 with the contents of Communication 239.1,please say "aye." Vote on Motion to The motion to amend Res. 140-25 with the contents of Amend: Comm. 239.1 was carried by the following voice vote: (Approved) Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, and Chair Inaba—8. Noes: None. Absent: Council Member Villegas — 1. Excused: None. Vote on Motion to Mr. Kaneali`i-Kleinfelder moved to suspend Council Suspend Council Rule 23 to waive the holdover for the substantive Rules: amendment of Res. 140-25. Seconded by Ms. Kierkiewicz (Approved) and carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, and Chair Inaba—8. Noes: None. Absent: Council Member Villegas — 1. Excused: None. CHR. INABA: Back to the main motion. Any further discussion? Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. I appreciate having the exhibit and the breakdown of funding just for the sake of public transparency. And then just want to again state for the record that our Animal Control and Protection Agency has been working in partnership with both of these organizations to coordinate Page 10 Hawaii County Council-13 May 21,2025 these activities, because I think there is this recognition that they cannot do everything. They absolutely lean on nonprofits in our community to round out there efforts. So in full support of the resolution. Thank you. CHR. INABA: Thank you. All right, on 140-25. MR. KANEALI`I-KLEINFELDER: One comment. CHR. INABA: Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: I'm not sure if this was said already, and I appreciate the detailed exhibits that were provided by Mr. Inaba. But speaking to what was said by K. T. Cannon-Eger earlier regarding the trapping and the sterilization and the feeding and the continued input of animals into the parks, and her speaking against that really brought home some of the problems that are inherent in the way we address cats and other animals in our parks and other facilities. And I just wanted to put that out for the Council that that is definitely an interesting component of this. If we just look at how we are addressing it by saying we're going to neuter and spay, and then continue to let the animals come into the park and we don't make a move to change that, that doesn't help fix the problem in the long run. It may limit the population, but if people keep bringing animals to these places, then the problem will continue to exist no matter what we do with programs like this. That's how I see it. So thank you for the time, Chair. CHR. INABA: Thank you. Vice Chair Onishi. MR. ONISHL Thank you, Chair. I will still not support this. One reason is because of how the funding was provided. It was taken out of the agency's general fund and then converted into grant money. And so I cannot support that because then what stops us from going to other departments where our money is not being used and take that out and create grant money for an agency or a nonprofit. So I cannot do that. And as K. T. did mention about Lili`uokalani, there are issues down there because of all the feeding. If they would trap and neuter and find a home for them, I would support this. But I cannot see trapping, neuter, and then put them back into the place. We need to, as Matt mentioned, we need to look ahead of that and try to resolve this whole situation. But we cannot continue doing what we're doing. The last thing I'm going to say, we have a homelessness problem. And so we need to to me, we need to deal with that first, right, and get people off the streets and into either their own homes or into medical facilities, or whatever we can do for them to get them back to how life is supposed to be. So I yield at this time. Thank you. CHR. INABA: Thank you, Vice Chair Onishi. Council Member Kagiwada. Page 11 Hawaii County Council-13 May 21,2025 MS. KAGIWADA: Thank you, Chair. A couple things. Thank you, Council Member Onishi. Agree that housing our homeless population is very important. As far as spay and neuter services, what we've been doing as a County and as Council Members with our district funds and with our Waiwai grants and other things is providing money for spay and neuter because we know our animal control cannot handle all of that. But I believe that this is actually a step in a more data-driven, focused way of looking at how we are doing kind of our scattershot approach to funding spay and neuter. So I don't know that it's the ultimate answer, but I do think it's a step in the right direction of trying to look at what we're doing and do it in a more researched way and mindful way of spending our dollars, but also of figuring out this issue. So I don't know that it's the end-all, but I really do feel like it's a step in the right direction and we have to do something. And then finally, I just want to address Council Member Onishi's concern about the funding. I was actually the person that put that$150,000 into the proposed that addition last year in the budget for contract services. It's not their general fund. It's under their contract services. After having a lot of discussions with animal control about directions they want to go and the fact that they cannot do everything, especially around cats. We really task them to be the main person around dangerous dogs. But some of the cat things are just really too much for their staff to handle at this time. So I'm going to be supporting, even though I don't think it's necessarily the be-all, end-all. But I do hope it will give us some data by going this way, that we can start moving forward on a better plan. I yield. CHR. INABA: Council Member Kimball. MS. KIMBALL: Thank you. I'll be supporting this resolution. I just want to go on record as saying I agree with the testifier earlier about there's public health and an environmental health safety issue with cats being abandoned in Lili`uokalani Park, without a doubt. But there have been other areas on this island, like over in Waikoloa where DLNR (Department of Land and Natural Resources) did a mass removal of cats. And what happened was all the feeders kind of went underground. And last I heard, all the cats are back. The problem is that we have just so many that when you do an effort where you just remove them all, it opens up an opportunity for the other strays, the other colonies, to just move into that space. And because there are feeders there and they'll just keep doing it, the cats are going to come back. And so there needs to be a strategy that involves enforcing existing County laws, like the abandonment laws, like the feeding laws, includes spay and neuter and includes training for folks that want to provide the food to the cats to make sure that we can gradually move them out of the area. Page 12 Hawaii County Council-13 May 21,2025 There's no mechanism where we just remove them and other ones don't come in. There has to be this sort of process where you're attacking it from several different angles. I know that Council Member Galimba and Kierkiewicz are working on amendments to Chapter 4. I think there's some opportunities for improvement there with respect to this enforcement. This funding is really not dedicated towards some of the to the Lili`uokalani effort, but it is part and parcel of the general subject, which is we need to be addressing this from the various angles. Thank you. CHR. INABA: Thank you. I just want to make sure we're not having policy discussions about feeding animals here. Vice Chair Onishi, go ahead. MR. ONISHL Thank you, Chair. Just to clarify, I did talk to the agency. The funding was created for the agency to hire or to get a vendor to do that certain project that you folks wanted, but they couldn't get one. So that money was still in the budget. And because the money was still there, it was taken out. I cannot understand we're doing more studies, because we know the bottom line is we need a cat sanctuary. We need some place where we can put the cats. So P&R (Parks and Recreation) Director Honma and myself and also animal control will be going to Lanai. Council Member Kimball, you and I think Kagiwada went there. And so you folks have seen what they're doing. So I don't see anything moving forward to create that here, but that's one avenue of how we can help to keep the cats in control, right. But I don't see no movement. So that's why we're going to go there to go find out what they're doing. And then with Administration, we're going to be seeing if we can do something about it, to create something here to help house all these feral animals. The last thing is just that the nene is federally protected under law. If these feeders are feeding feral cats and something happens from the cat to the nene, my question was to animal alliance, what happens? Who's responsible, right, because now there's a Federal violation going on. And we talked about enforcement. That's what we want to look at too. So just, I guess, some information or just my thoughts. I yield. CHR. INABA: Thank you. We'll take the vote. All those in favor—Mr. Clerk, a roll call actually. Page 13 Hawaii County Council-13 May 21,2025 Vote on Res. 140-25: The motion to adopt Res. 140-25, as amended to Draft 2, Draft 2 and Finance Committee Report No. 44 was carried by the (Adopted) following roll call vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kierkiewicz, Kimball, Villegas, and Chair Inaba—7. Noes: Council Members Kaneali`i-Kleinfelder and Onishi —2. Absent: None. Excused: None. Res. 141-25: APPROVES THE AWARD OF FUNDS TO THE HAWAI`I 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) Approve: FC-45 (Note: Comm. 240.1, from Council Member Holeka Goro Inaba dated May 21, 2025, transmitting proposed amendments to Res. 141-25, was circulated.) Motion to Approve: Mr. Kaneali`i-Kleinfelder moved to adopt Res. 141-25 and Finance Committee Report No. 45. Seconded by Mr. Hustace. Motion to Amend: Mr. Onishi moved to amend Res. 141-25 with the contents of Comm. 240.1. Seconded by Ms. Kierkiewicz. CHR. INABA: Vice Chair Onishi. MR. ONISHL Just showing the details of where the funds are going to go to. CHR. INABA: Thank you. All those in favor, please say "aye." Vote on Motion to The motion to amend Res. 141-25 with the contents of Amend: Comm. 240.1 was carried by the following voice vote: (Approved) Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Page 14 Hawaii County Council-13 May 21,2025 Vote on Motion to Mr. Onishi moved to suspend Council Rule 23 to waive the Suspend Council holdover for the substantive amendment of Res. 141-25. Rules: Seconded by Ms. Galimba and carried by the following (Approved) voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Vote on Res. 141-25: The motion to adopt Res. 141-25, as amended to Draft 2, Draft 2 and Finance Committee Report No. 45 was carried by the (Adopted) following roll call vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Villegas, and Chair Inaba—8. Noes: Council Member Onishi — 1. Absent: None. Excused: None. Res. 142-25: AUTHORIZES THE MAYOR TO ENTER INTO AN INTERGOVERNMENTAL AGREEMENT WITH THE STATE OF HAWAI`I'S DEPARTMENT OF TRANSPORTATION AS WELL AS GRANT A REAL PROPERTY LICENSE OR PERMIT FOR THEIR INSTALLATION AND UPKEEP OF NATIONAL ELECTRIC VEHICLE INFRASTRUCTURE SYSTEMS AT VARIOUS COUNTY OF HAWAI`I PROPERTIES Seeks to allow the State Department of Transportation to install and maintain National Electric Vehicle Infrastructure Charging Stations at various sites within Hawaii County. Reference: Comm. 242 Intr. by: Council Member Kagiwada(B/R) Approve: GOEAC-42 and Comm. 242.1: From Finance Director Diane Nakagawa, dated April 30, 2025, transmitting proposed amendments to Res. 142-25. Motion to Approve: Ms. Kagiwada moved to adopt Res. 142-25 and Governmental Operations and External Affairs Committee Report No. 42. Seconded by Ms. Galimba. CHR. INABA: Council Member Kagiwada. Page 15 Hawaii County Council-13 May 21,2025 MS. KAGIWADA: Thank you, Chair. We have Business Manager Kalua-Lewis here if you have any questions. I think we had a decent discussion during Committee. (Note: At this time, Business Manager Kelsey Kalua-Lewis, Public Works Department, came forward to address the members of the Council.) MS. KAGIWADA: Good morning. MS. KALUA-LEWIS: Good morning. I was able to get an update. I believe the question was posed at Committee, how much vehicles can be charged at a station. So I reached out to our partners at HDOT (Hawai`i Department of Transportation). One vehicle can be used at each station, and there will be four stations at each site. MS. KAGIWADA: Terrific. Thank you so much for getting that information. I don't have anything else. I yield. Motion to Amend: Ms. Kagiwada moved to amend Res. 142-25 with the contents of Comm. 242.1. Seconded by Mr. Kaneali`i- Kleinfelder. CHR. INABA: Any discussion? Council Member Hustace. MR. HUSTACE: Please explain this amendment. We didn't have it in discussion last time. It wasn't even brought to the floor. I am opposed to this amendment, but I don't know why you're striking the location out of Waimea. So please explain. Thank you. MS. KALUA-LEWIS: Yes, no problem. We removed the Waimea site because it is actually, I believe it was an EO (executive order) from the State. So they do not need to enter the agreement with us. MR. HUSTACE: So it's still happening regardless? MS. KALUA-LEWIS: Yeah. They have the authority, I believe. I can double- check with Corp. (Corporation) Counsel, but because it is executive ordered to the Waimea Civic Center, they do not need our permission to use the land. MR. HUSTACE: But there's still four chargers being installed at the location as far as you're aware? MS. KALUA-LEWIS: Correct. According to HDOT, yes. MR. HUSTACE: Okay, thanks for that clarification. Because it seemed, from the amendment, of just being removed entirely and there was no real cause. Page 16 Hawaii County Council-13 May 21,2025 MS. KALUA-LEWIS: Oh, okay, yeah. So, definitely, they're still going to put the chargers there. They just don't have to enter into an agreement with the County for the ability to use the land. MR. HUSTACE: Okay, because the resolution doesn't speak to the EO, so that's where I think that miscommunication might be. But that exists so that it's not necessarily to have it on the list. It just blanketly removes the Waimea Civic Center out of it. So that's why I would vote against it, but thank you for that clarification on that. MS. KALUA-LEWIS: No problem. CHR. INABA: (Inaudible?) MR. HUSTACE: I don't know. CHR. INABA: All right, we'll do a roll call vote on the amendment,please. Vote on Motion to The motion to amend Res. 142-25 with the contents of Amend: Comm. 242.1 was carried by the following roll call vote: (Approved) Ayes: Council Members Galimba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—8. Noes: Council Member Hustace— 1. Absent: None. Excused: None. Vote on Motion to Mr. Kaneali`i-Kleinfelder moved to suspend Council Suspend Council Rule 23 to waive the holdover for the substantive Rules: amendment of Res. 142-25. Seconded by Ms. Kierkiewizc (Approved) and carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Page 17 Hawaii County Council-13 May 21,2025 Vote on Res. 142-25: The motion to adopt Res. 142-25, as amended to Draft 2, Draft 2 and Governmental Operations and External Affairs (Adopted) Committee Report No. 42 was carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Res. 145-25: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO ASSIST THE DEPARTMENT OF PARKS AND RECREATION WITH EXPENSES RELATING TO THE HILO BAY BLAST FIREWORKS DISPLAY AT HILO BAY TO CELEBRATE INDEPENDENCE DAY ON JULY 4, 2025 Transfers $4,000 from the Clerk-Council Services —Contingency Relief account (Council District 4); and credits to the Department of Parks and Recreation, Culture and Education Other Current Expenses account. Reference: Comm. 245 Intr. by: Council Member Kierkiewicz Motion to Approve: Ms. Kierkiewicz moved to adopt Res. 145-25. Seconded by Mr. Kaneali`i-Kleinfelder. CHR. INABA: Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you. Parks and Rec. (Recreation)reached out because they needed some additional support for their annual Hilo Bay Blast Fireworks Display on the 4 h of July. This is something that I fondly remember checking out as a youth, and so it's really heartwarming to be able to bring my children to experience this. It's a very safe event. The pyrotechnic show the fireworks show is handled by professionals. So this is a great opportunity for community to come hang out with each other in Hilo Bay and enjoy the fireworks display. So, looking for everyone's support, and if you have extra contingency, I'm sure that P&R would be very supportive. Hint, hint, Council Member Onishi. I yield. CHR. INABA: Thank you, Council Member Kierkiewicz. Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Very much in support. Love the event. Thank you. Page 18 Hawaii County Council-13 May 21,2025 CHR. INABA: Thank you. Council Member Kagiwada. MS. KAGIWADA: Also supportive, especially I really do like the ability to have the community together and have a safe fireworks display. I think the more we can promote these activities on the east and west side, the better off we'll be, and hopefully reduce some of the fireworks accidents and things that we've seen in the past. So, very happy to support. Thank you. CHR. INABA: Thank you. Vice Chair Onishi. MR. ONISHL Thank you, Chair. Just a note that for the Hilo area, I think community police will be using their e-bikes for patrol. So that will be awesome. Thank you. CHR. INABA: Thank you, Vice Chair Onishi. All those in favor of approving Resolution 142-25, please say "aye." Vote on Res. 145-25: The motion to adopt Res. 145-25 was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Res. 169-25: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PURCHASE METAL FOR TRASH BINS AT `ALAE CEMETERY Transfers $5,000 from the Clerk-Council Services —Contingency Relief account (Council District 3); and credits to the Department of Parks and Recreation, `Alae Cemetery Other Current Expenses account. Reference: Comm. 273 Intr. by: Council Member Onishi Motion to Approve: Mr. Onishi moved to adopt Res. 169-25. Seconded by Ms. Kagiwada. CHR. INABA: Council Member Onishi. MR. ONISHL Thanks, Chair. For the cemetery, they do have these sections where they have some metal bins. But then I guess like Parks manager Jason Mattos mentioned during budget hearing was that, I guess, when other Page 19 Hawaii County Council-13 May 21,2025 places need these bins, they take it from `Alae Cemetery. And so now, when the people with their old flowers and stuff, they just throw it within that cement block. So now Parks and Rec., the guys that collect the rubbish, needs to scoop it up. So now it takes more time. So, with this funding, it will help purchase the bins that are missing at the cemetery. So I ask for your support. CHR. INABA: Thank you, Vice Chair Onishi. Mahalo to our Parks staff who take care of that cemetery. My own kupuna are there. So I appreciate the work that you folks do. All those in favor of approving Resolution 169-25, please say Ic aye. Vote on Res. 169-25: The motion to adopt Res. 169-25 was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Res. 170-25: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE FUNDING FOR FENCING ACCESSORIES TO THE DEPARTMENT OF PARKS AND RECREATION Transfers $10,000 from the Clerk-Council Services —Contingency Relief account (Council District 3); and credits to the Department of Parks and Recreation, Parks Maintenance Other Current Expenses account. Reference: Comm. 274 Intr. by: Council Member Onishi Motion to Approve: Mr. Onishi moved to adopt Res. 170-25. Seconded by Ms. Kierkiewicz. CHR. INABA: Vice Chair Onishi. MR. ONISHL Thank you, Chair. This is to help Parks with providing more funding to getting materials and supplies, because every district, you all know. You folks have baseball parks, tennis courts or volleyball courts outdoors and stuff, and basketball courts. So, with this funding, it will give them more materials to help replace those broken fences or damaged fences. And I think it Page 20 Hawaii County Council-13 May 21,2025 was mentioned, about something in Kohala or someplace in District 9, the fencing was lifting up and so forth, right, at the baseball field, which is very dangerous. So this will help provide more funding for their crew. And just to let you folks know, if you didn't know, Parks did create a fencing crew so that they can do it in-house. This was done back in 2010 or 2012. Sol ask for your support. CHR. INABA: Thank you. All those in favor of approving Resolution 170-25, please say "aye." Vote on Res. 170-25: The motion to adopt Res. 170-25 was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Res. 171-25: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO THE FRIENDS OF THE PALACE THEATER FOR THE 2025 EASTER EXTRAVAGANZA Transfers $4,000 from the Clerk-Council Services —Contingency Relief account (Council District 3); and credits to the Department of Liquor Control, Public Programs account. Reference: Comm. 275 Intr. by: Council Member Onishi Motion to Approve: Mr. Onishi moved to adopt Res. 171-25. Seconded by Mr. Hustace. CHR. INABA: Vice Chair Onishi. MR. ONISHL Thank you, Chair. Just asking for support. I heard it was an awesome event with a lot of children attending this big Easter egg hunt. I appreciate Gigi guys in helping and running this event. Thank you. CHR. INABA: Mahalo. All those in favor,please say "aye." Page 21 Hawaii County Council-13 May 21,2025 Vote on Res. 171-25: The motion to adopt Res. 171-25 was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Res. 172-25: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO LA`I`OPUA 2020 TO PURCHASE EQUIPMENT FOR ITS COMMUNITY MALA PROJECTS Transfers $6,230.35 from the Clerk-Council Services —Contingency Relief account (Council District 7); and credits to the Department of Liquor Control, Public Programs account. Reference: Comm. 276 Intr. by: Council Member Villegas Motion to Approve: Ms. Villegas moved to adopt Res. 172-25. Seconded by Mr. Onishi. CHR. INABA: I'll be recusing myself from discussion and voting on this matter, being that an immediate family member is an employee of this nonprofit. Council Member Villegas. MS. VILLEGAS: Just asking for my colleagues' support, and would like to express gratitude for this mala project. The garden area is absolutely spectacular. I had the opportunity to eat some of the fresh local produce grown there in a recent meal. It's wonderful to see this activity, this space, and the perpetuation of regenerative agricultural practices here on the west side. I yield. CHR. INABA: Thank you. Any further discussion? Seeing none, all those in favor please say "aye." Vote on Res. 172-25: The motion to adopt Res. 172-25 was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, and Villegas —8. Noes: None. Absent: None. Excused: Council Chair Inaba— 1. Page 22 Hawaii County Council-13 May 21,2025 Res. 173-25: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO THE HALE MUA CULTURAL GROUP TO ASSIST WITH EXPENSES RELATED TO THE KING KAMEHAMEHA DAY CELEBRATION PARADE AND HO`OLAULE`A IN KAILUA-KONA Transfers $5,000 from the Clerk-Council Services —Contingency Relief account (Council District 7); and credits to the Department of Liquor Control, Public Programs account. Reference: Comm. 277 Intr. by: Council Member Villegas Motion to Approve: Ms. Villegas moved to adopt Res. 173-25. Seconded by Mr. Hustace. CHR. INABA: Council Member Villegas. MS. VILLEGAS: I just want to express my deep gratitude for the group that continues to put together a King Kamehameha Day Parade in Kailua-Kona, and the ho`olaule`a that follows afterwards. At a time when it becomes more and more challenging to find volunteers and people committed to perpetuating the parade traditions in our town. I'm deeply grateful for this organization and community group, for this culturally relevant and historically significant parade for Kailua Village. I yield. CHR. INABA: Mahalo. All those in favor of approving Resolution 173-25, please say "aye." Vote on Res. 173-25: The motion to adopt Res. 173-25 was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Page 23 Hawaii County Council-13 May 21,2025 Res. 174-25: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO EQUALITY HI TO SUPPORT THE 13TH ANNUAL PRIDE PARADE AND FESTIVAL Transfers $5,000 from the Clerk-Council Services —Contingency Relief account (Council District 2); and credits to the Department of Liquor Control, Public Programs account. Reference: Comm. 278 Intr. by: Council Member Kagiwada Motion to Approve: Ms. Kagiwada moved to adopt Res. 174-25. Seconded by Mr. Hustace. CHR. INABA: Council Member Kagiwada. MS. KAGIWADA: Thank you. Just happy to support this organization. They didn't have a parade last year. They decided to do a parade every other year. So this is the chance if anybody wants to march in the parade or just attend the festival. It will be on Saturday, June 28, the parade in Downtown Hilo and the festival at the Mo`oheau Bandstand area. So hope to see you all out there supporting our LGBTQIA+ community. Thank you. I yield. CHR. INABA: Mahalo. All those in favor of approving Resolution 174-25, please say "aye." Vote on Res. 174-25: The motion to adopt Res. 174-25 was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Onishi, Villegas, and Chair Inaba—8. Noes: None. Absent: Council Member Kimball — 1. Excused: None. Res. 175-25: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO HOPE SERVICES HAWAI`I, INC., TO SUPPORT ITS YOUTH HOUSING UNITS Transfers $3,558.25 from the Clerk-Council Services —Contingency Relief account (Council District 2); and credits to the Department of Liquor Control, Public Programs account. Reference: Comm. 279 Intr. by: Council Member Kagiwada Page 24 Hawaii County Council-13 May 21,2025 Motion to Approve: Ms. Kagiwada moved to adopt Res. 175-25. Seconded by Mr. Hustace. CHR. INABA: Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. Just looking for your support. This funding will be used to help get the furnishings needed for these apartments for 18-26 year old homeless youth who will now have a place to stay. It's a brand new setup with many apartments. So they just need a little help getting some things like beds and nightstands and things like that. So I was happy to be able to help. Looking for your support. Thanks. CHR. INABA: Thank you. All those in favor of approving Resolution 175-25, please say "aye." Vote on Res. 175-25: The motion to adopt Res. 175-25 was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Onishi, Villegas, and Chair Inaba—8. Noes: None. Absent: Council Member Kimball — 1. Excused: None. Res. 176-25: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO THE NEIGHBORHOOD PLACE OF PUNA TO SUPPORT ITS ANCHOR POINT YOUTH CENTER Transfers $5,000 from the Clerk-Council Services —Contingency Relief account (Council District 2); and credits to the Department of Liquor Control, Public Programs account. Reference: Comm. 280 Intr. by: Council Member Kagiwada Motion to Approve: Ms. Kagiwada moved to adopt Res. 176-25. Seconded by Mr. Hustace. CHR. INABA: Council Member Kagiwada. MS. KAGIWADA: Just looking to support this new outreach center for homeless youth on the east side of the island, a safe place where they can go. This will just provide the ability to give them food, hygiene items, things like that. So just to Page 25 Hawaii County Council-13 May 21,2025 try to connect with them and support them, and then hopefully get them to a place where they would also accept housing services, things like that. So, looking for your support. Thank you. CHR. INABA: Thank you. Council Member Villegas. MS. VILLEGAS: I, unfortunately, am not going to be able to support this contingency relief fund allocation. I heard from numerous sources that Neighborhood Place of Puna has had a mass exodus of staff and employees, and potentially may not have the people necessary to continue the services that they have already been funded to provide via our homeless and housing funds. As we all know, they were already allocated I believe it was $400,000 in the last allocation for this program. And so I don't think that more funds is going to help at this point. Unfortunately, some changes need to be made in operations before I think more taxpayer money should be allocated to this program. No offense, Council Member Kagiwada. I recognize and value your heart and your truest intentions to support especially our youth that are finding themselves unhoused. But I won't be able to support this today. I yield. CHR. INABA: Thank you, Council Member Villegas. Any further discussion? Council Member Kagiwada. MS. KAGIWADA: I'll just say we heard from two of the staff from Anchor Point, giving testimony today that they could really use these funds just to provide those essential supports for the youth that come in. So thank you. CHR. INABA: Okay, I have a question regarding this. Is anybody able, maybe from Housing, to answer whether this specific program was awarded funds in our last—they were? Okay. Anchor Point was one of the programs that was awarded. I have concerns, then, that there is potential double-dipping across our different County grant programs. If we're not able to get that clear answer at this time, Council Member Kagiwada, do you have any further information? MS. KAGIWADA: Yeah. I'll just say that we did check that these items were not at all covered by the Housing grant. The items that we are covering are specific items, like food for the next month, hygiene products, things like that— things that were not covered in the grant. We were very specific to work with them on only items that were not covered. CHR. INABA: All right. Without being able to compare the two side by side right now, I cannot support it either. So we'll take a roll call vote. Page 26 Hawaii County Council-13 May 21,2025 Vote on Res. 176-25: The motion to adopt Res. 176-25 was carried by the (Adopted) following roll call vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kierkiewicz, and Onishi —5. Noes: Council Members Kaneali`i-Kleinfelder, Villegas, and Chair Inaba—3. Absent: Council Member Kimball — 1. Excused: None. CHR. INABA: I just want to state for the record that as we head into further refinement of our CRF (Contingency Relief Fund)processes, we can have more confidence as a group checking against any concerns of double-dipping. So we'll be implementing that with the new fiscal year. Thank you all for your understanding and patience as we go to that new system. Res. 177-25: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO HOMELESS TASK FORCE TO ASSIST WITH EXPENSES FOR ITS HOMELESS OUTREACH AND ENGAGEMENT PROJECT Transfers $9,000 from the Clerk-Council Services —Contingency Relief account (Council District 8); and credits to the Department of Liquor Control, Public Programs account. Reference: Comm. 281 Intr. by: Council Member Inaba Motion to Approve: Mr. Onishi moved to adopt Res. 177-25. Seconded by Ms. Galimba. CHR. INABA: Any discussion? I ask for my colleagues' support. This is specifically for, again, hygiene kits, taxi rides, and making sure that unhoused individuals in the West Hawaii region have support. So I ask for my colleagues' support. All those in favor of approving Resolution 177-25, please say "aye." Vote on Res. 177-25: The motion to adopt Res. 177-25 was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Onishi, Villegas, and Chair Inaba—8. Noes: None. Absent: Council Member Kimball — 1. Excused: None. Page 27 Hawaii County Council-13 May 21,2025 Res. 178-25: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PAY FOR USE OF THE KONA TROLLEY FOR THE WEST HAWAI`I COUNTY BAND DURING THE KING KAMEHAMEHA DAY PARADE Transfers $570 from the Clerk-Council Services —Contingency Relief account (Council District 8); and credits to the Department of Parks and Recreation, Hawaii County Band Other Current Expenses account. Reference: Comm. 282 Intr. by: Council Member Inaba Motion to Approve: Mr. Onishi moved to adopt Res. 178-25. Seconded by Mr. Kaneali`i-Kleinfelder. CHR. INABA: This resolution is from my office. Perhaps the reason for the updated memo from P&R about the amounts of our resolutions, but this specifically pays for the trolley, as our West Hawaii County Band is having a little bit more difficult time walking the whole length of the parade. So I ask for my colleagues' support. And again, this parade, King Kamehameha Day, is happening on June 7 this year. I ask for my colleagues' support. All those in favor,please say "aye." Vote on Res. 178-25: The motion to adopt Res. 178-25 was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Onishi, Villegas, and Chair Inaba—8. Noes: None. Absent: Council Member Kimball — 1. Excused: None. Res. 184-25: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR MULTI-YEAR EMPLOYMENT CONTRACTS FOR THE OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT Authorizes the Mayor to enter into two-year employment contracts for one program oversight manager, one special program manager, and one program data manager to implement and manage the Homelessness and Housing Programs. Reference: Comm. 296 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Waived: FC Page 28 Hawaii County Council-13 May 21,2025 Motion to Approve: Mr. Kaneali`i-Kleinfelder moved to adopt Res. 184-25. Seconded by Ms. Galimba. CHR. INABA: Administrator Costa? This was waived from Committee. If you could please give a background to the Council today. (Note: At this time, Housing Administrator Kehaulani Costa came forward to address the members of the Council.) CHR. INABA: Actually, I'll give the floor to Council Member Kaneali`i- Kleinfelder. MR. KANEALI`I-KLEINFELDER: Ms. Costa, go ahead, please. Thank you. MS. COSTA: Thank you. Administrator Costa, Office of Housing. This resolution would allow us to enter into multi-year contracts for our Homeless and Housing Fund program staff. Currently, they're on one-year contracts that we renew, even though it's a five-year fund. So we're just—we have a couple of contract employees that are on one-year contracts that are coming up for renewal, and we'd like them to be able to stay on to finish out this five-year program. MR. KANEALI`I-KLEINFELDER: Okay. And the funding is from the fund itself. MS. COSTA: Yes, from the fund itself. MR. KANEALI`I-KLEINFELDER: Okay, perfect. Thank you, Administrator Costa. I yield, Chair. CHR. INABA: You got it, Council Member Kaneali`i-Kleinfelder. All those in favor of approving Resolution 184-25, please say "aye." Vote on Res. 184-25: The motion to adopt Res. 184-25 was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Onishi, Villegas, and Chair Inaba—8. Noes: None. Absent: Council Member Kimball — 1. Excused: None. Page 29 Hawaii County Council-13 May 21,2025 Res. 186-25: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO HALE MUA CULTURAL GROUP TO ASSIST WITH EXPENSES FOR THE 2025 KING KAMEHAMEHA DAY CELEBRATION PARADE AND HO`OLAULE`A Transfers $8,553 from the Clerk-Council Services —Contingency Relief account (Council District 8); and credits to the Department of Liquor Control, Public Programs account. Reference: Comm. 288 Intr. by: Council Member Inaba Motion to Approve: Mr. Kaneali`i-Kleinfelder moved to adopt Res. 186-25. Seconded by Ms. Galimba. CHR. INABA: I ask for my colleagues' support. This is to the same group Council Member Villegas supported for general costs associated with the pa`u units, roaming marshalls, lua, and other expenses related to the King Kamehameha Day Parade and celebration. I ask for your support. All those in favor,please say "aye." Vote on Res. 186-25: The motion to adopt Res. 186-25 was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Onishi, Villegas, and Chair Inaba—8. Noes: None. Absent: Council Member Kimball — 1. Excused: None. BILLS FOR The Chair directed the Council to proceed to the next order of business, Bills for ORDINANCES Ordinances (First Reading). (FIRST READING): STATEMENTS The Chair directed the Council to proceed to the next order of business, FROM THE Statements from the Public. PUBLIC ON BILL 44 The following individual registered to speak and came forward when called by (COMM. 232): the Chair: John McBride: Comment. Page 30 Hawaii County Council-13 May 21,2025 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 Approve: FC-46 Motion to Approve: Mr. Hustace moved to pass Bill 44 on first reading and adopt Finance Committee Report No. 46. Seconded by Ms. Galimba. Relinquish Chair: At this time, Chair Inaba relinquished the chair to Acting Chair Onishi. ACTING CHR. ONISHL Chair Inaba. MR. INABA: Thank you. Perhaps I'll let Council Member Hustace start us off today. Council Member Hustace. MR. HUSTACE: Thank you, Chair. Grateful to cosponsor this bill. As a Native Hawaiian myself, I don't have the blood quantum to ever live on homestead land, but honored to bring this forward to the benefits of our homestead community and provide parity across the counties. And then, Council Members, you see Communication 232.1 is still in your packet as a reference to what exists with the other counties. And I'm grateful to LRB (Legislative Research Branch) for bringing this information forward, kind of a nonbiased sort of policy assessment on what exists in other counties. So the goal here is to bring parity with the other counties and ultimately provide tax relief to our homesteading communities. So I'll leave it at that for now. Chair, if you wanted to dive a little further into some of the questions that may have popped up and other thoughts? Thank you. MR. INABA: Thank you. Thank you, Vice Chair Onishi. There was a question regarding sections of the Code that are being struck via this bill, specifically the references to HRS (Hawai`i Revised Statutes) 239-3 and Chapter 234 as well. These sections are being struck because they were repealed. So they are no longer in existence in the Hawaii Revised Statutes. And there was also a question brought up regarding the value of the land. This bill does not affect the valuation of property. It simply expands the exemption to include any improvements that are made upon any Hawaiian Homes homestead property. So whether you have a vacant parcel or a parcel with a large home, the minimum tax Page 31 Hawaii County Council-13 May 21,2025 of$200 would be applied. So I ask for our colleagues' continued support in this matter, and thank Chair and Kali Watson of the Department of Hawaiian Home Lands for his testimony today. ACTING CHR. ONISHL Okay, any other discussion? Hearing or seeing none, all those in favor of approving Bill 44 on first reading, say "aye." Vote on Bill 44: The motion to pass Bill 44 on first reading and adopt (Approved) Finance Committee Report No. 46 was carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Villegas, and Acting Chair Onishi —9. Noes: None. Absent: None. Excused: None. Relinquish Chair: At this time, Acting Chair Onishi relinquished the chair to Chair Inaba. Bill 45: AMENDS CHAPTER 14, ARTICLE 10, SECTION 14-65, OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO DESIGNATED EXCEPTIONAL TREES Amends the Tax Map Key and Location of the exceptional trees listing for the "Chinese Weeping Banyan"to 2-2-29:08 Kilauea Avenue. Reference: Comm. 234 Intr. by: Council Member Onishi Approve: PCPLUED-2 Motion to Approve: Mr. Onishi moved to pass Bill 45 on first reading and adopt Policy Committee on Planning, Land Use, and Economic Development Committee Report No. 2. Seconded by Ms. Galimba. CHR. INABA: Vice Chair Onishi. MR. ONISHL Just asking for support and just a clean house. Thank you. CHR. INABA: Thank you. All those in favor, please say "aye." Page 32 Hawaii County Council-13 May 21,2025 Vote on Bill 45: The motion to pass Bill 45 on first reading and adopt Policy (Approved) Committee on Planning, Land Use, and Economic Development Committee Report No. 2 was carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Bill 46: AMENDS SECTION 25-8-30 (NA`ALEHU ZONE MAP), ARTICLE 8, CHAPTER 25 (ZONING) OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), BY CHANGING THE ZONE MAP CLASSIFICATION FROM SINGLE FAMILY RESIDENTIAL 10,000 SQUARE FEET (RS-10) TO VILLAGE COMMERCIAL 10,000 SQUARE FEET (CV-10) AT NA`ALEHU, KA`U, HAWAI`I, COVERED BY TAX MAP KEY: 9-5-009:001 (POR.) (Applicant: L.A. Services Inc.) (Area: approx. 6,920.3 square feet) The Windward Planning Commission forwards its unfavorable recommendation for this requested change of zone, which would allow the applicant to establish a unified zoning designation for the entire property. The property is located at 95-5591 Mamalahoa Highway. Reference: Comm. 235 Intr. by: Council Member Kimball (B/R) Negative: LAAC-14 (Due to a vote of 9-noes) Motion to Approve: Ms. Kimball moved to pass Bill 46 on first reading. Seconded by Ms. Galimba. CHR. INABA: Council Member Kimball. MS. KIMBALL: I'm not going to reiterate the conversation we had in Council that resulted in the unfavorable recommendation. The Planning Department is here for any follow-up questions. CHR. INABA: Thank you. Any further discussion? All those in favor,please say "aye." Page 33 Hawaii County Council-13 May 21,2025 Vote on Bill 46: The motion to pass Bill 46 on first reading failed by the Failed following roll call vote: Ayes: None. Noes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Absent: None. Excused: None. (Note: Due to the negative recommendation in Legislative Approvals and Acquisitions Committee Report No. 14, the report was adopted.) Bill 47: AMENDS CHAPTER 6 OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO TRANSIENT ACCOMMODATIONS Adds a new article requiring most transient vacation rentals and hosting platforms for transient vacation rentals to register with the County before operating; provides for enforcement and penalties. Reference: Comm. 236 Intr. by: Council Member Kimball and Council Member Kierkiewicz Approve: PCPLUED-3 and Comm. 236.3: From Council Member Heather L. Kimball, dated May 6, 2025, transmitting proposed amendments to Bill 47. (Note: Comms. 236.52 and 236.53 from Council Member Heather L. Kimball dated May 20, 2025, transmitting proposed amendments to Bill 47, were circulated.) Motion to Approve: Ms. Kimball moved to pass Bill 47 on first reading and adopt Policy Committee on Planning, Land Use, and Economic Development Committee Report No. 3. Seconded by Ms. Galimba. Relinquish Chair: At this time, Chair Inaba relinquished the chair to Acting Chair Onishi. ACTING CHR. ONISHL Ms. Kimball, go ahead. Motion to Amend: Ms. Kimball moved to amend Bill 47 with the contents of Comm. 236.52. Seconded by Ms. Kierkiewicz. Page 34 Hawaii County Council-13 May 21,2025 ACTING CHR. ONISHL Okay, go ahead, Ms. Kimball. MS. KIMBALL: Thank you. This amendment is in response to some additional conversations that were alluded to with the hosting platforms in the south. The way that the bill is drafted, the hosting platform compliance part would take effect at the same time as the registration part. But we're going to need a little bit of a delay to get everybody registered, and then for the hosting platforms to comply. And so in order to accommodate that but not be specific, the hosting platform compliance part will take effect upon notice from the Finance Director that they're ready to begin that aspect of the compliance. The second amendment, it was mentioned that the URL (Uniform Resource Locator) is the best source of information regarding transient vacation rentals. The nice thing is that these platforms archive them. So, even if there's a point where we have something delisted, we'll still be able to get the information about the transient vacation rental from that URL. Providing these four components could make the consistent reporting for the platforms across the State, which is going to be easier for them as far as implementation. And then the last bit has to do with a notification process. What will happen nominally is that if it is determined that a hosting platform isif there's a TAR (transient accommodation rental) on a hosting platform that is not legally registered, the hosting platform will be notified and then have 30 days to remove that listing before they will be considered in violation of this rule. So it gives a little buffer there for them to comply with the listing removal. So that's the amendments in this particular communication. Thank you. ACTING CHR. ONISHL Thank you. Relinquish Chair: At this time, Acting Chair Onishi relinquished the chair to Chair Inaba. CHR. INABA: Further discussion on the amendment? Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Just briefly. Thank you for submitting the amendment, Council Member Kimball. CHR. INABA: Any further discussion? Council Member Villegas. MS. VILLEGAS: While I appreciate the intention to try and rectify the challenges created by basically an overrun of TVRs (transient vacation rentals), I won't be supporting this amendment. I have a lot of questions about the overall piece of legislation because nothing exists yet in Chapter 25. And so we are creating all these policies around something that doesn't exist yet. And I believe it's putting the cart before the horse, also until we get the economic impact study Page 35 Hawaii County Council-13 May 21,2025 overturned. So I can go ahead and go over my specific concerns when we get back to the main motion, but I won't be supporting any amendments either as we move forward. CHR. INABA: Thank you. A roll call vote on the amendment. Vote on Motion to The motion to amend Bill 47 with the contents of Amend: Comm. 236.52 was carried by the following roll call vote: (Approved) Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, and Chair Inaba—8. Noes: Council Member Villegas — 1. Absent: None. Excused: None. CHR. INABA: Council Member Kimball. MS. KIMBALL: I have a second amendment. This is actually coming at the request of the Mayor's office to amend the fine and give the Planning Department a little flexibility to reduce that fine in certain circumstances. We want to have a fairly strong hammer here to make sure people are registering, but I do understand the need for some flexibility. So, instead of having a flat$10,000 fee, it's a minimum of$1,000 and up to $10,000 depending on the situation. Motion to Amend: Ms. Kimball moved to amend Bill 47 with the contents of Comm. 236.53. Seconded by Ms. Kierkiewicz. CHR. INABA: On the amendment, Vice Chair Onishi. MR. ONISHL Thank you, Chair. I guess, Director Darrow, could you please come up? (Note: At this time, Planning Director Jeffrey Darrow came forward to address the members of the Council.) MR. ONISHI: Good morning. MR. DARROW: Aloha, Chair, Vice Chair, and members of the Hawaii County Council. Jeff Darrow with the Planning Department. MR. ONISHL So will your department, or you will be determining what the amount of the fine will be? MR. DARROW: Correct. Page 36 Hawaii County Council-13 May 21,2025 MR. ONISHL How will you determine the amount of the situation? MR. DARROW: Typically, now we have a fine schedule in place. My thinking at this time, being that there will be flexibility in the fine amounts, we would need to do the same thing in Chapter 25 for TVRs where we have a fine schedule in place. And normally, what that entails is first offense is so much, second offense is so much, and it increases as similar violations increase. MR. ONISHL So is that a house rule or policy that you folks set up, or is it a certain ? MR. DARROW: No. Hopefully, it will be in the upcoming revision to Chapter 25 that's proposed to come after this bill. MR. ONISHL Oh, okay. I'm wondering if it should be put in this right now. MR. DARROW: It could be but it might be because Chapter 25 will house basically the overall process as far as how Planning is going to enforce TVRs, it might be better to have it in there and then reference Bill 47 or whatever section MR. ONISHL Within Chapter 25. MR. DARROW: Yeah. Well, it will be in Chapter 6, but we can reference that in our update that happens. MR. ONISHL Because, basically, this bill in front of us is about registration, getting everybody into compliance, correct? MR. DARROW: Right. MR. ONISHL So wouldn't it be, or make more sense if we had that written in here so that people would know? MR. DARROW: It could. But again, right now there's no—all there is is a fine amount, right. There's no enforcement process. The enforcement process for Planning is in Chapter 25, yeah. MR. ONISHL It could be confusing for the public, right? And maybe that's why we're getting some testimony about how they're against it. MR. DARROW: Well, this is very unique in the sense that registration is coming under Chapter 6, mainly under Finance, but Planning is very involved. But we also really need to have that update in Chapter 25 to get the full picture on everything. Page 37 Hawaii County Council-13 May 21,2025 MR. ONISHL Okay. But so on your recommendations, how could we make it much more simple so the public could understand? MR. DARROW: Again, I think we're looking at the first part. It'll be clearer with the second part in place. But the message has been this is the process right now. We're going through the first part once we finish that economic study. Because, there's a lot more that needs to be done, and I'm sure Council Member Kimball can speak to it. But it's not just passing this bill. There's other processes that has to be put in place for this to start working. And during that time frame, there's going to be work being done on the economic study, to finish that up, as well as Chapter 25. MR. ONISHL Okay. Since you brought that up—maybe I should just wait for the main motion. But yeah, thank you for clarifying. MR. DARROW: Thank you. MR. ONISHL And I think we've just got to educate the public better. Right? MR. DARROW: Sure. MR. ONISHI: Thank you. CHR. INABA: Thank you, Vice Chair Onishi. On the amendment, Council Member Villegas. MS. VILLEGAS: Director Darrow? MR. DARROW: Aloha. MS. VILLEGAS: Aloha. Thanks for allowing me not to be there today. I'm not feeling well. I don't want to bring this stuff to that room with everybody. Would you say,just in layman's terms, that this is putting the cart before the horse? MR. DARROW: It's not a planning term we use. But I think, as mentioned by Vice Chair Onishi, it's the first part of a two-part process. It could be done differently. Obviously, it could be done where they both come through together. But the maker of the bill decided to go Part 1 and then Part 2. So we're just doing the best we can as we go through it. MS. VILLEGAS: So, in your personal and professional opinion, do you think it's wise to make this Part 1 and then Chapter 25 Part 2? Or would it be wiser to do Chapter 25 and then this bill? CHR. INABA: Council Member Villegas, I just want to remind you we're on the amendment right now, 236.53. Page 38 Hawaii County Council-13 May 21,2025 MS. VILLEGAS: Okay, I'll yield at this time. CHR. INABA: Okay, thank you. On the amendment, all those in favor please say "aye." Vote on Motion to The motion to amend Bill 47 with the contents of Amend: Comm. 236.53 was carried by the following roll call vote: (Approved) Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, and Chair Inaba—8. Noes: Council Member Villegas — 1. Absent: None. Excused: None. CHR. INABA: Council Member Villegas, you can continue. MS. VILLEGAS: I just want to put this out to this body, some reasons why Bill 47 should be deferred until the short-term vacation rental study needs to be completed so the data and information and what it finds are available. Chapter 25 needs to be amended to establish TVR rentals, land use, and zoning standards. Right now, it's important to point out that Chapter 6 addresses business practices. It does not address land use policies. Bill 47 lays out processes for registration, enforcement, and annual renewal processes for individual businesses operating STVRs, and defines the TVRs. Since legal policies for unhosted STVRs had previously been adopted, the primary purpose of Bill 47 appears to be an attempt to address hosted vacation rentals as defined. However, as previously pointed out, Chapter 6 addresses business practices for an individual business operation. It does not address land use policies. Our Council is being asked to move forward Bill 47 that would amend Chapter 6 of the Hawaii County Code by adding a new section titled "Transient Vacation Rentals." But this new use needs to be incorporated into Chapter 25, which addresses the County of Hawaii land use zoning requirements. Since TVRs have not been defined in Chapter 25 of the Hawaii County Code, basic requirements have not been addressed, as in which state and county districts would these uses be permitted. Will there be limited space on the total number of permits issued for the operations of TVRs? What will be the permitting or approval process? How many guests will be permitted in each room? What will the maximum number of guests at any one time? What total percentage of residence can be used for transient uses? Can a primary residence be rented for transients with the host utilizing a secondary shelter? There are a number of questions. In conclusion, and why I would ask the author to defer this is that further consideration of Bill 47 should be deferred until the TVR study is completed so Page 39 Hawaii County Council-13 May 21,2025 that the data and information it finds are available for consideration by the community. And Chapter 25 needs to be amended to establish TVR rentals' land use standards. I have conferred with a number of professional land use planners who have been actively involved and who I might note are voraciously opposed to TVRs. So this isn't with any intent to stop regulation of those businesses, but it is a dire request for us to follow due process and not put the cart before the horse, potentially opening ourselves up to more chaos and confusion, and further muddying the water when it comes to our land use policies and where TVRs are allowed to operate. That's my humble request of my Council Members and of the author of this legislation to please slow down, follow due process, and that we do the one before the two in the more wise sequence of events, regardless of intent to try and get this taken care of as soon as possible. With that, I yield. CHR. INABA: Thank you, Council Member Villegas. Coming back to Hilo, Vice Chair Onishi. MR. ONISHL Thank you, Chair. I guess this question would be to Ms. Kimball. So, when you did that presentation, the first time in Kona, you had those charts. And then what my understanding was, we needed to pass the first reading. And then from there, they would go and get the study moving forward. MS. KIMBALL: (Inaudible.) MR. ONISHL Yeah and I'm asking, because then you had those charts, and then you said, okay, after this going get this and then going get that and whatever. CHR. INABA: Council Member Kimball. MS. KIMBALL: We have the study that was initiated by the resolution. But speaking with the vendor—and Council Member Kierkiewicz can add to this, too, because she's had more direct contact with them having the registration process and having that data will actually better inform our ability to do the Chapter 25 update. So what you're remembering is our plan is 47 first, get the registration, then we get an official count and location of things that's paired with the financial impact study, and then we introduce the land use change. But we need the information from the registration process to make the determination about what to do with Chapter 25. So that's what you're thinking of would come next. MR. ONISHL Do you want to add anything today? Ms. Kierkiewicz. CHR. INABA: Council Member Kierkiewicz. MS. KIERKIEWICZ: Sure. We are expecting a draft analysis from the vendor by the end of this month, or early June at the latest. In conversations with them Page 40 Hawaii County Council-13 May 21,2025 and understanding the number of folks that participated, hundreds have participated, both residents and operators. It became abundantly clear that I think in order to answer the question about land use and where TVRs are permitted, and if we do visitor destination areas, we need a really accurate assessment of who is operating and how and where before we make any other policy decisions, including regulations. So that's why we've had to be very fluid throughout this process. This bill is necessary to complement the study that is being prepared by Hunden Partners. I hope that answers your question. MR. ONISHL Yeah. But then, so now we pass this. Say the study is different to what we pass. Because, unless you folks are anticipating that the study is going to be what is being proposed today. Because you said the study is not finished yet. Correct? CHR. INABA: Council Member Kierkiewicz. MS. KIERKIEWICZ: I just want to make abundantly clear that the study is an economic impact analysis. This bill is about registering vacation rentals. Two completely different topics. The study will help to inform any future policy and regulation MR. ONISHL In Chapter 25. MS. KIERKIEWICZ: In Chapter 25, correct, but it has no bearing on registration. The study will not influence whether or not folks need to register. The bottom line is folks register. MR. ONISHL Okay. See, that's where there's confusion, too, even for me. I thought, with the presentation that you did, that study was part of all this. But it's all separate components, right. So that's why I think we need to be more clear to the public, because if I couldn't understand until asking questions now, can you imagine the public. They're confused out there. And that's why I think we're getting these testimonies about people so upset, right, because they don't understand. And to me, I support the registration because you want to get the illegal guys legal. Because, then for the legal people, or entities, it's not fair for them to compete against illegal TVRs and so forth, right. So I can see that. And so I just wanted to kind of clarify. I guess we need to explain more because then I know these bills have been going on for a long time. And there was a previous one that went up to Draft 5 and then they killed it or whatever you guys did with that, right. And now, it's coming back again, and people are going "Why are you bringing it back?" and so forth. I think educating the public is a needed resource, or somehow working with Planning to help do that. But yeah, that's my thought. Thank you. Page 41 Hawaii County Council-13 May 21,2025 CHR. INABA: Thank you. Council Member Kimball. MS. KIMBALL: I just—your point is well made. It is confusing primarily because 121 was so massive, and so people have a lot of what was in there in their mind. We've really tailored it back to just registration, super simple, no land use changes. I will just, since we have the public watching, we have the website that has a webinar that Ashley and I did about the bill that I think is even more expansive than the presentation I got. And I did a podcast with an Al tool, which is pretty wild. I encourage you to listen to it. We wanted to be able to work with people that learn in different ways, but agreed. I mean, we're having to continue to message about this. And the more we talk about it in these hearings and kind of clarify things, I think that improves the situation as well. Thank you. CHR. INABA: Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. Director Darrow, there was a constituent who was here earlier. He's come before this body regarding Bill 21. We had talked about VDAs (vacation destination areas) and contiguous lots being looked at as sort of one building site. The concern is by registering, we are giving the County an opening to enforce certain laws and violations. But I just want to make very clear that the intent of the Planning Department is not to make visits to every single person that is registering through this process. But your department will continue to function in a complaint-driven manner. Is that correct? I just want to assuage any concerns about that, that you're going to be using this information and somehow weaponizing it against the community, and that's not what is happening here. MR. DARROW: Jeff Darrow with the Planning Department. Thank you for the question, Council Member. The intent for Planning has always been to seek compliance, not to be a hammer or use enforcement as a means of punishment. I mean, all the time when we get a complaint, our goal is to see what we can do to resolve the complaint, not"Oh, we've got a complaint issue,"try to get fines or whatever—all the time. Even with fines, we give breaks on fines as long as the person that's being complained about is working with us to resolve. In this particular case with short-term vacation rentals, or now TVRs, there's a difference regarding enforcement. And I agree, our Code says that we cannot take anonymous complaints, that we need a complaint to be able to go out. There are times, though, that Planning sees something egregious that we've really got to do something. This is health and safety. We've got to do something to stop what's going on. But for STVRs and TVRs, the way the language is in the Code right now is it's more based on advertising as almost like a prima facie evidence. But again, we don't necessarily go and look for it, right. If we get a complaint, that's a means Page 42 Hawaii County Council-13 May 21,2025 that we can utilize to verify a complaint that's valid, right. We don't just go search the internet and find everybody, although we could. But we don't do that, right. We're trying to operate systematically in the same across the board, that we receive a complaint because obviously this is affecting somebody. But with that being said, there is a lot of concern about this process that's going to be happening now. Planning will be working together with the Council to be able to make sure that we get through Bill 47, get through Bill 25, however we do it, and be able to make it so that everything is complete and clear before we really start focusing on any type of enforcement for that. The main goal, like you said, is let's get people registered. Once they register, we're not going to be going "Oh, let's look at each of these." But there will be a process to register to make sure that they meet certain standards. And if they meet that, then they are able to register. That has really nothing to do with Planning because it will be in Bill 47. MS. KIERKIEWICZ: Thank you, Director. And again, the key piece here is you are not proactively going out to look for violations. This continues to be a complaint-driven process. And I think the reality is, too, the market really regulates itself. If folks that are staying at different vacation rentals do not have a positive experience, that's reflected in the reviews and hosts make adjustments to their operations and accommodations accordingly. So I appreciate you clarifying and providing that for the record. I yield. CHR. INABA: Any further discussion? Okay. I wasn't able to share some of my thoughts at the Committee hearing. And I think there were some concerns regarding the definitions, specifically the booking services and its interplay with the hosting platform definition. In terms of the definition for unhosted, which states, "`Un-hosted' refers to a TVR located on a property on which a host does not reside while the TVR is rented,"wondering if can get some insight on the necessity for that last part"while the TVR is rented." I'm not understanding why it wouldn't be a blanket statement, period; they just don't reside on that property. To either of the makers. MS. KIMBALL: If I may? I think you have to look at hosted and unhosted together. And so one can be the host on a property and not be there, and then it becomes unhosted, right. And so that's why they have to be present, not only as a resident, but actually during operations. Then otherwise it's considered an unhosted rental. And this is actually one of the complaints that we see a lot, is people advertising it's hosted, but then when the folks come and stay, they're not actually physically on the site while it's being rented. And so they would technically be operating as unhosted. CHR. INABA: In my reading of it, hosted refers to a TVR located on a property that is the principle home of a host. And if you're reading it together, unhosted in Page 43 Hawaii County Council-13 May 21,2025 my mind would be where the host doesn't have a principle home. Because if they're not there temporarily—so for three hours of the person's rental they're not there, it's considered unhosted at the timeI don't think that's a smart way to define unhosted. So that's a concern of mine. In Section 6-42, I have concern here with rulemaking authority to both the Finance and Planning Director. It seems like a Planning matter; Planning's going to be the one enforcing the fines, it seems like, that we've discussed earlier the 1,000 to 10,000. I'm not sure if Finance has a thought on it, but personally I don't—I'm not going to ask you to come up, Director Nakagawa. I just think it should be with one department, because we don't want to see conflicting administrative rules from two different departments if things don't track along simultaneously. So, with the bill as currently drafted, I have concerns. I can't support today. I do support the intention of what we're trying to do here. I just—things need to be further ironed out to completely make sense for me. So, with that, we'll take a roll call vote on Bill 47 at first reading. Vote on Bill 47: The motion to pass Bill 47, as amended to Draft 2, on first Draft 2 reading and adopt Policy Committee on Planning, Land (Approved) Use, and Economic Development Committee Report No. 3 was carried by the following roll call vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, and Kimball —6. Noes: Council Members Onishi, Villegas, and Chair Inaba—3. Absent: None. Excused: None. 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) Approve: FC-47 Page 44 Hawaii County Council-13 May 21,2025 Vote on Bill 48: Mr. Kaneali`i-Kleinfelder moved to pass Bill 48 on first (Approved) reading and adopt Finance Committee Report No. 47. Seconded by Ms. Galimba and carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—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 JUNE 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) Approve: FC-48 Vote on Bill 49: Mr. Kaneali`i-Kleinfelder moved to pass Bill 49 on first (Approved) reading and adopt Finance Committee Report No. 48. Seconded by Ms. Galimba and carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Page 45 Hawaii County Council-13 May 21,2025 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 Approve: FC-49 (Note: Comm. 241.1, from Council Member Jenn Kagiwada dated May 14, 2025, transmitting proposed amendments to Bill 50, was circulated.) Motion to Approve: Ms. Kagiwada moved to pass Bill 50 on first reading and adopt Finance Committee Report No. 49. Seconded by Ms. Galimba. CHR. INABA: Council Member Kagiwada. MS. KAGIWADA: Thank you. I have an amendment based on our last discussion. Motion to Amend: Ms. Kagiwada moved to amend Bill 50 with the contents of Comm. 241.1. Seconded by Ms. Galimba. CHR. INABA: Council Member Kagiwada. MS. KAGIWADA: Thank you. This is kind of a minor adjustment, but it was suggested, I believe, by Council Member Kimball that just in case we were to go below 9 million for this section of revenue, we wanted to put in there "no less than 9 million of the revenue collected annually pursuant to the subsection, or whenever less than 9 million is collected, all such revenue." So basically that we would not be committing ourselves to the 9 million if we did not have it that year. I yield. CHR. INABA: Thank you, Council Member Kagiwada. Any further discussion on the amendment? Seeing none, all those in favor please say "aye." Page 46 Hawaii County Council-13 May 21,2025 Vote on Motion to The motion to amend Bill 50 with the contents of Amend: Comm. 241.1 was carried by the following voice vote: (Approved) Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Vote on Bill 50: The motion to pass Bill 50, as amended to Draft 2, on first Draft 2 reading and adopt Finance Committee Report No. 49 was (Approved) carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Bill 56: AMENDS ORDINANCE NO. 24-32, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR ENDING JUNE 30, 2025 Increases revenues in the Federal Grants —Justice Assistance Grant-Special Response Team Capability Enhancement Grant account($78,671); and appropriates the same to the Justice Assistance Grant-Special Response Team Capability Enhancement Grant account, for a total appropriation of$129,028. Funds would be used by the Police Department for training, travel, and specialized gear and equipment. Reference: Comm. 294 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Waived: FC Vote on Bill 56: Mr. Kaneali`i-Kleinfelder moved to pass Bill 56 on first (Approved) reading. Seconded by Ms. Galimba and carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Page 47 Hawaii County Council-13 May 21,2025 Bill 57: AMENDS ORDINANCE NO. 24-32, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR ENDING JUNE 30, 2025 Increases revenues in the Federal Grants —High Intensity Impact Grant account ($22,600); and appropriates the same to the High Intensity Impact Grant account, for a total appropriation of$690,877.96. Funds would be used by the Police Department for overtime, travel, training, services, and equipment to investigate drug-related cases. Reference: Comm. 295 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Waived: FC Motion to Approve: Mr. Kaneali`i-Kleinfelder moved to pass Bill 57 on first reading. Seconded by Ms. Galimba. CHR. INABA: Any discussion? Seeing none, all those in favor MS. VILLEGAS: Chair? CHR. INABA: Council Member Villegas. MS. VILLEGAS: I just wanted to give a quick shout-out to Captain Edwin Buyten for all of his exemplary work in stopping drug trafficking, and commend him and his department on their incredible successes, and excited and grateful for the opportunity to support the allocation of these funds for their continued amazing work in our County. I yield. CHR. INABA: Thank you. All those in favor, please say "aye." Vote on Bill 57: The motion to pass Bill 57 on first reading was carried by (Approved) the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Relinquish Chair: At this time, Chair Inaba relinquished the chair to Acting Chair Onishi. Page 48 Hawaii County Council-13 May 21,2025 ORDER OF The Chair directed the Council to proceed to the next order of business, Order of THE DAY the Day (Second or Final Reading). (SECOND OR FINAL READING): Bill 39: AMENDS CHAPTER 19, ARTICLE 1, SECTION 19-2, AND ARTICLE 7, (Draft 2) SECTION 19-53, OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO THE AFFORDABLE RENTAL HOUSING REAL PROPERTY TAX CLASSIFICATION Repeals the definition of"affordable rental housing," amends the definition of "affordable rental rate," and amends subsection (h) Eligibility for affordable rental housing class. Reference: Comm. 206.2 Intr. by: Council Member Inaba First Reading: May 7, 2025 (Note: The following communications dated May 21, 2025, relating to Bill 39, Draft 2, were circulated: 1) Comm. 206.4 from Council Member Jenn Kagiwada transmitting proposed amendments; 2) Comm. 206.5 from Council Member Jenn Kagiwada transmitting a rent comparison table; and 3) Comm. 206.6 from Council Member Michelle M. Galimba transmitting proposed amendments.) Motion to Approve: Mr. Inaba moved to pass Bill 39, Draft 2, on second and final reading. Seconded by Ms. Kagiwada. ACTING CHR. ONISHL Mr. Chair. MR. INABA: Thank you, Council Member Onishi. I ask for my colleagues' continued support. Again this bill, for the public's knowledge, expands those who can be in the Real Property Tax Affordable Rental Program to include those who are accepting Section 8 vouchers, and also standardizes an 80 percent area median income across the island, something that is fair, published by Hawaii Housing Finance and Development Corporation each year. And ultimately we want to provide benefit to property owners who are renting at affordable rates here in our County. So I ask for my colleagues' continued support as the bill is currently drafted. Thank you. ACTING CHR. ONISHL Ms. Kagiwada. Motion to Amend: Ms. Kagiwada moved to amend Bill 39, Draft 2, with the contents of Comm. 206.4. Seconded by Ms. Galimba. Page 49 Hawaii County Council-13 May 21,2025 ACTING CHR. ONISHL Go ahead. MS. KAGIWADA: Thank you. I'm not really sure how to do this, because I noticed that Council Member Galimba also has a similar but not the same proposed amendment. So I don't know if we can discuss them together, or if we need to take them one by one. How do you want to do it, Chair? ACTING CHR. ONISHL Mr. Clerk? MR. HENRICKS: It's up to the Council's decision how to handle these types of matters. ACTING CHR. ONISHL Okay. We'll go one by one. MS. KAGIWADA: Okay. So this amendment is just based on what we talked about before, which is just—well, I can really see the benefit of increasing the payment amounts. Well, first of all, I absolutely support trying to make this simpler, and also bringing Section 8 under the same criteria for payment. So yes on that. But I definitely had some concerns about looking at the high-cost zip code areas on the west side in the same light as those in Ocean View (inaudible), Puna, Hilo. And so even the current way that things are done, I believe there's—we have the differential. So I also want to, in order to talk about this,just introduce Communication No. 206.5. This is the information provided by Council Member Inaba's office earlier with just the addition of the 70 percent AMI(Area Median Income)put in there. Because what I am proposing is that the high cost communities, zip codes, would be at that 80 percent AMI as proposed by this bill. But the other zip codes that are not at such a high cost would be at the 70 percent AMI instead of the 80 percent AMI, which brings them closer to where they're at right now without having a big jump opened up in how much people would have to pay for those same rentals. So, if you look at the rent comparison, currently we have two sets of payment standards. We have one for those high-end zip codes, the current 75 percent of payment standards. And so we kept those same zip codes in this amendment, and just say that all those that are doing the 75 percent standard that is the higher one would be 80 percent. And all other zip codes would go to 70 percent, which is just slightly less but is a little more in line with what they're currently paying, instead of having big jumps. I hope I explained that correctly. Happy to answer any questions people may have. MR. HENRICKS: Vice Chair Onishi, I just wanted to verify before any further deliberation that Council would need to choose either one of these amendments or neither. They do not work together. So I want to verify that. Thank you. Page 50 Hawaii County Council-13 May 21,2025 ACTING CHR. ONISHL Yeah. (Inaudible) mention that. We're on Communication 206.4. MR. HENRICKS: Correct. ACTING CHR. ONISHL That's on the floor right now. Any more discussion? Chair Inaba. MR. INABA: Thank you. I would like to call on Housing and—or perhaps Real Property Tax Assistant Administrator Keita Jo. From my perspective, I know Housing has selected these zip codes via the current payment standard method. And that's what Council Member Kagiwada has pulled over to create the 80 percent, in line with the current reading. But for the second portion where there's an average of the most recent, between 60 and 80, I'm wondering how Real Property Tax would interpret that and how that would be used to try and inform the public of what the actual rental limits would be for the program. (Note: At this time, Assistant Real Property Tax Administrator Keita Jo, Finance Department, came forward to address the members of the Council.) MR. JO: Keita Jo, Assistant Administrator for Real Property Tax Division. As we would interpret the amendments, we would take the 80 percent of median and 60 percent of median provided by Hawaii Housing Finance and Development Corporation, and then we would take the average of the two to essentially get to 70 percent. And so that would be communicated through an updated application, which would come out probably closer to July. So, right now, applications are being issued October through December. So that gives a really short window. So this increases that window by going to the HHFDC (Hawai`i Housing Finance and Development Corporation)rates. MR. INABA: Thank you. Okay, mahalo for that response. I won't be in support of this amendment. I appreciate bringing it forward as it does provide a method for us to discuss it with the specific zip codes of the current program. I don't think we have the information required to make that decision to say for certain that only those zip codes would be 80, and everyone else would be at 70. Furthermore, Real Property Tax would need to go and create numbers based on HHFDC's numbers. It isn't readily available, as published by HHFDC, the 70 percent AML So I ask for my colleagues not to support this amendment and continue supporting the bill as drafted, via Draft 2. Thank you. ACTING CHR. ONISHL Okay. Any other members? Mr. Kaneali`i- Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you. Administrator? Page 51 Hawaii County Council-13 May 21,2025 (Note: At this time, Housing Administrator Kehaulani Costa came forward to address the members of the Council.) MR. KANEALI`I-KLEINFELDER: Please introduce yourself. MS. COSTA: Administrator Costa. MR. KANEALI`I-KLEINFELDER: Thank you. Did you look at the amendment that was brought forward? MS. COSTA: I did, yes. MR. KANEALI`I-KLEINFELDER: Okay. What do you think? MS. COSTA: Can you be more specific with your question? MR. KANEALI`I-KLEINFELDER: What do you think of the call out for the zip codes and the zip codes provided? MS. COSTA: It's currently what we use for Section 8 to create exception payment areas for higher rent areas. MR. KANEALI`I-KLEINFELDER: Okay. And the effect with this included in the bill versus what the bill is now? MS. COSTA: So the effect for Section 8 is that we are able to issue a higher payment standard for Section 8 landlords in those exception payment areas, because rents are a little higher. So we can get a little closer to market, not really, but a little bit closer to market in those exception areas for Section 8 participating landlords. MR. KANEALI`I-KLEINFELDER: Okay. And these zip codes that are included now, these are the areas where we see higher rents already. So, allowing for the department to subsidize at a higher cost for the higher rental areas. MS. COSTA: Those areas, yes. MR. KANEALI`I-KLEINFELDER: Okay. And then for the No. 2 section, everything elseI'm looking at this rental guidelines for 60 percent and for 80 percent of the AML My brain is trying to wrap my head around what that means if we're calling out two different— MS. KAGIWADA: Chair, I can answer that if MR. KANEALI`I-KLEINFELDER: Yes,please. Page 52 Hawaii County Council-13 May 21,2025 ACTING CHR. ONISHL Go ahead, Ms. Kagiwada. MS. KAGIWADA: Okay, thank you. Since the numbers are not provided by the organization, it just means that you're going to take the 70 percent, the average of the two to get to 70 percent. Because they don't give every they don't give 10, 20, 30, 40, 50, 60. They only give 60, 80, and 100 annually. MR. KANEALI`I-KLEINFELDER: Oh, I got you. Got it. MS. KAGIWADA: So it's just saying that you're going to do that very simple calculation, which RPT (Real Property Tax) said no problem, you can ask them, but yeah, to get to the 70 percent, which seemed more in line with what's already available. MR. KANEALI`I-KLEINFELDER: Okay. Interesting way of going about it, but I understand that. Okay. Real Property, is your department able to take this on in a manner that's efficient? MR. JO: As mentioned earlier, based on the amendment, RPT would be able to utilize existing numbers to calculate on an annual basis that 70 percent more or less. MR. KANEALI`I-KLEINFELDER: So nobody's going to quit tomorrow if this amendment were to pass? MR. JO: No. MR. KANEALI`I-KLEINFELDER: Okay. We heard that in the past. It's a scary thing to make changes and everybody freak out. Okay. I like the amendment because we spoke to this means of allowing for a little bit more selective subsidization from Housing for rental areas that we want to see grow, and not trying to affect the market in areas that are proliferated with rentals already. I'm thinking back two weeks. A lot has happened between there and here. Am I missing anything? Administrator, this is kind of in the direction that we were speaking to? I feel like you're being hesitant, I'm just saying. MS. COSTA: This amendment does create the exception areas. So it does allow for you to—Real Property Tax to create rental rates in an exception area versus all of the other zip codes on the island. The exception area is set by Section 8. So questioning that moving forward, because we set the—Section 8 sets the exception areas, and there's a methodology for how we set the exception areas. Just curious how that would be moving forward. Just in particular as to why I'm hesitant is because what I'm challenged with, in my mind, is that the AMI chart addresses rental—what an individual or a family should be paying in rent if they are at 80 percent or below AMI income earned. Page 53 Hawaii County Council-13 May 21,2025 So I just have a just philosophically, I have a particular challenge with saying that 80 percent, if you're 80 percent and below is typically what we consider low income. Eighty percent is usually around our ALICE (Asset Limited, Income Constrained, Employed)population, right. So 80 percent and below is typically what we consider to be low income. So we're using an AMI in this particular amendment to set fair market rents. I just philosophically have an issue with saying that somebody's at 70 percent. In all these other zip codes, if you're 70 percent AMI, you're considered low income. But in the higher rental areas, 80 percent and below. So we're using an AMI to calculate rent. So anyway, that's just philosophically what I'm having a harder time with. But it's all right. MR. JO: Can I comment on the zip codes? MR. KANEALI`I-KLEINFELDER: Yes, go ahead, please. MR. JO: As I'm sitting here, I think there's a concern that those zip codes might be fluid because Housing sets them. And I don't know if it's Housing's process that sets them on an annual basis. So, if it's being fixed here, is the market going to change? The question I'm asking myself is, is the market going to change in future years that now we need to include or exclude some of these zip codes. That would be a concern, as I'm sitting here thinking out loud. MR. KANEALI`I-KLEINFELDER: Okay. So without a yearly review or some process built into this, we may negatively affect what we're wanting to do, and then we just don't know. MR. JO: We don't. And the alternative would be to set it across the board as one rate. MR. KANEALI`I-KLEINFELDER: Interesting. Okay, Administrator, your concern lies more on the use of the (inaudible) MS. VILLEGAS: Excuse me, Mr. Kaneali`i-Kleinfelder, can you snuggle up to your microphone a little bit? MR. KANEALI`I-KLEINFELDER: I hate having this thing in my mouth. Thank you. Administrator, you're saying that the AMI is the concerning part. The use of the word or the terminology AMI, or just the philosophical basis of using AMI as a guideline? MS. COSTA: Yeah, it's just the way my brain is trained. Eighty percent and below AMI is low income. Right? So, if you're serving 80 percent and below AMI, you are addressing affordable, people who are in an affordable housing category. So just to kind of take that and go 70 percent of AMI is how we're Page 54 Hawaii County Council-13 May 21,2025 setting the rents. It's apples and oranges in my brain, that's all. But I know what Council Member Kagiwada is doing, is really trying to get the rent rates closer to the fair market rates. We're just using this tool. If you're just using the AMI chart, the 80 percent AMIif you're just using the AMI chart and you're hitting 80 percent AMI, you're just basically saying across the island, if the landlord is charging 80 percent rent or below, they are addressing, based on that chart, individuals and families that are earning 80 percent and below income. It's simplified. MR. KANEALI`I-KLEINFELDER: Whereas, if we went with the original language of the bill, which is what we're amending with this amendment, it would be, in the case of a two-bedroom home, instead of 75 percent of a payment standard at$1,700 a month, 80 percent AMI would land us at$4 shy of$2,000 a month. With Ms. Kagiwada's amendment, we'd be landing at$1,746 a month. So landing us in that right zone of equity as we apply the standard and the AMIs to land us in the right zone for the rental market. It's creative and it lands us in that sweet spot, so it's interesting. So, philosophically, we have a dilemma. But as far as financially and where it's landing us, it's actually landing us in a good spot. Okay, I yield. Thank you. ACTING CHR. ONISHL Ms. Kimball. MS. KIMBALL: Yes, thank you. On the amendment, I'll explain why I gave you that look. So AMI calculated countywide. So would your perception be that 80 percent AMI in Kona and Waimea is the same as 80 percent AMI (inaudible)? MS. COSTA: No, absolutely not. You know that I know that, right? MS. KIMBALL: Right. MS. COSTA: So that is really this is just really complex, right. We've got one data point for an entire island, given to us by HUD (United States Department of Housing and Urban Development) for both fair market and AMI based on census data. So you know that I'm challenged with this as well, unless MS. KIMBALL: Yes. And so that, I think, is if we go with AMI, that becomes the problem, right, is that you have one standard for very different communities. And I think this approach of saying, well, 70 percent on the east side, even though I get what you're saying, it's not uniform, but 70 percent on the east side may be closer to 80 percent if you only use the east side to make the calculation of AMI. Right? MS. COSTA: The data? MS. KIMBALL: Yeah. Page 55 Hawaii County Council-13 May 21,2025 MS. COSTA: Right, so MS. KIMBALL: If we had that information. MS. COSTA: If we had the data. MS. KIMBALL: Right, which we could actually get, right? We could get the (inaudible) updated to calculate the AMI for each (inaudible). MS. COSTA: Absolutely. MS. KIMBALL: It's not simpler because it's not linear. So that's how I mentally get around this, right. Because 70 percent AMI on the east side is actually more like 80 percent AMI on the west side. I think what this amendment presents is the kind of incrementalism that—if I understand the maker's intent, it is to incentivize more people to get into the affordable housing tax class, therefore make more affordable housing available for rent. And so I think that this would be an incremental step towards that, that would limit the potential for unintended consequences. Because I do think this is convoluted and complicated enough that there is the possibility that we would see unintended consequences. And so while there may be refinements needed later on, such as the zip codes or other things, maybe the 70, 80 is not right, it's enough of an incremental step that I think it will give us data in a couple years from now to say, okay, this was the right way to go or not. We have that I mean, it seems like a long time, but we want to get this right. And I'd hate to make too drastic of a change too quickly and really mess things up. So I'll be supporting this amendment. With the reflection of the other amendment coming, I prefer this one. Thank you. ACTING CHR. ONISHL Ms. Villegas, do you have anything? MS. VILLEGAS: No, I won't be supporting the amendment. I yield. ACTING CHR. ONISHL Okay. Anyone else in Hilo? Seeing noneoh, Ms. Galimba. MS. GALIMBA: I do have another amendment. I actually almost see it as a fallback I'll be supporting this amendment, actually. I prefer to my amendment, basically I've had conversations with Administrator Costa and we both kind of went, "Ah, so much to think about." And it also kind of reflects some of the discussion from last time, that potential desire to do a whole housing survey. So that's kind of reflected in that. But I think it might be better to just go with something more specific at this time, rather than trying to get ourselves into Page 56 Hawaii County Council-13 May 21,2025 a whole sort of housing survey. And if we need to, if this formula doesn't work out, then we could amend later and then do a housing survey to try and fix and make everything right at that time. So I will be supporting this amendment. ACTING CHR. ONISHL Chair Inaba. MR. INABA: Thank you. I just want to point out for the three- and four- bedroom units should this amendment pass, we could potentially be kicking out existing property owners out of the Real Property Tax Affordable Rental Program, because we're reducing the rent for all other zip codes from $2,134 to $2,016, and then $2,355 to $2,250 for the four-bedroom. Real Property Tax had run some numbers regarding those on the island that are within $100 of the maximum rent currently or at max rent, and that number is at 12 percent. Unclear at this time how many of those people are not in those districts that would be at the higher rate, but there is that potential and I don't think we have that number. But that is a clear risk of passing this amendment. We're going to potentially be kicking people out of the affordable rental program. So leave it at that. My continued request is to not amend the bill. Thank you. ACTING CHR. ONISHL Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you. Just kind of reflecting on the conversation and the remarks provided by Administrator Costa and Deputy Jo. I'm worried about the continuous tinkering here because I hear about we could just pass this and we'll see how it works, and we can just fix it. Our work might be done here on the dais, but what we don't see is the countless hours that your teams are putting in to figure out these formulas and communicate yet another change to the community. So I worry about the constant changing that you folks are having to accommodate. I understand the intention but I'm not hearing you folks being warm to either of the amendments that are being put forth today. So I'm wondering if the best thing to do is to just go with the bill that is before us. I just want to confirm that that might be the preferred approach at this time. A lot of work has been spent kind of gearing up to getting us to this draft. Again, I just want to be very cognizant of all of the work that happens after we approve these laws. MR. JO: To that end, I did want to respond to Chair Inaba's comment regarding the rents on this amendment, potentially kicking people out in terms of the three- bedroom and four-bedroom housing units. When we looked at our analysis, about 62 percent of all the participants in the current ARH (Affordable Rental Housing) program are three-bedroom homes. And so that may have some significant ramifications. Just looking at the numbers, we can certainly do a more thorough analysis, but it does look like it would impact. Page 57 Hawaii County Council-13 May 21,2025 From RPT's perspective, we want something that's simple, easy for us to digest and also communicate with the public. And so that's really what we're looking for. MS. KIERKIEWICZ: Okay. Deputy Administrator, I just want to confirm what we have in the current draft, no amendments, is the preferred approach. That is the simplest path forward in your mind right now to execute. MR. JO: If you're talking about potential inequities, the 80 percent is preferred only because there is a potential for some three-bedroom units to be excluded from the program. Either way, we're okay as long as we have a fixed number that we can go to and calculate. MS. KIERKIEWICZ: Administrator, anything to add? I know the last time we met on this, there was talk about your office doing a study and being more responsive in like real time to make adjustments, but I don't think we're there yet. And I know you want to get the office to a position to be able to do that, but we're just not there yet. So your thoughts on the amendments before us. MS. COSTA: I believe the intention of this bill initially was to move the setting of the rent rates away from Office of Housing and our payment standard because of the particular way that we manage our payment standards and our budget and the number of vouchers we have, and to give Real Property Tax an earlier start on communicating with landlords and getting their applications out and a number, instead of waiting for Section 8 to establish that number, which is often after October 1st. So it's not really giving a lot of runway for landlords who need to apply to this program every single year. So I think the intention of the bill was to move that rent setting away from Office of Housing. I'm particularly here for this because of the addition to Section 8 participating landlords being able to take advantage of RPT's affordable rental program. So, to that end, I think the original bill intends to do what we're trying to move towards. For the amendment, there's still going to be some consideration of exception payments—exception area zip codes, and when that changes at Section 8 or when we do different housing studies, how does that affect exception areas. And we'd still be tinkering with that. But I do understand also the intention of the amendment to try to create rents—address rent disparities in East and West Hawaii. MS. KIERKIEWICZ: But it sounds like even without this amendment, you are still able to make adjustments on your end and communicate that with Real Property Tax. MS. COSTA: Yes. Page 58 Hawaii County Council-13 May 21,2025 MS. KIERKIEWICZ: Okay. MS. COSTA: And it would be less so. With the original bill, it would be less so. Section 8 can set their payment standard, set their exception areas, manage the budget that we have for vouchers separately from consideration of how that affects the RPT program. MS. KIERKIEWICZ: Great. That's all I need. Thank you very much. I yield. ACTING CHR. ONISHL Okay. Mr. Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you. A good point by Mr. Inaba. I'm actuallyI was going to ask if Council Member Kagiwada would table the amendment to allow us to speak to Council Member Galimba's amendment because the two are different. It takes yours off the table but it doesn't get rid of it. I like components of it. But it allows us to speak to Ms. Galimba's one and to the Administrator, and then pick one and go forward if the body was open to that idea. ACTING CHR. ONISHL Ms. Kagiwada. MS. KAGIWADA: Absolutely. I motion to table this amendment. ACTING CHR. ONISHL Okay. Mr. Clerk? MR. KANEALI`I-KLEINFELDER: Second. MR. HENRICKS: You can only table a main motion and all the motions that come along with it. You can withdraw your motion to amend. MS. KAGIWADA: Okay. I withdraw my motion to amend so we can discuss the other one. Withdraw Motion Ms. Kagiwada withdrew her motion to amend Bill 39, to Amend: Draft 2, with the contents of Comm. 206.4. ACTING CHR. ONISHL We're back to the main motion. Ms. Galimba. Motion to Amend: Ms. Galimba moved to amend Bill 39, Draft 2, with the contents of Comm. 206.6. Seconded by Mr. Kaneali`i- Kleinfelder. ACTING CHR. ONISHL Ms. Galimba, go ahead. MS. GALIMBA: Thank you. This amendment is basically—it's reflecting some of the conversation that we had at the last meeting and some of the concerns about Page 59 Hawaii County Council-13 May 21,2025 the different markets that we have on this island, as well as some conversations with OHCD (Office of Housing and Community Development) and the fact that—so, right now, what we have is very complicated and not working very well as far as the rental rates for affordable housing, from what I understand, coming from the payment standards, which then are affected by Section 8 budget. So there's constant change and not any stability around what landlords can expect as far as those levels. The original bill addresses that by going to a more stable 80 percent AMI set once a year. But as this earlier conversation reflects, 80 percent AMI is not a rental rate. It's a salary rate or resource rate, which then gets translated into a rental rate, which we then use for this calculation. So, given that conversation, I basically am putting forward the option of having OHCD work that out and come up with a rental rate that is based on a rental rate, so that there can be sort of less complication with the whole process. So that's this amendment that they—OHCD will come up with a methodology and establish it by administrative rules. ACTING CHR. ONISHL Do you want them to respond, Ms. Galimba? MS. GALIMBA: Sure. Go ahead, Administrator Costa. MS. COSTA: It's what we do now. Right? We establish that rental rate. That's what we're doing currently. It's not an administrative rule. It's just a policy, which is what we're trying to move away from. So this language is okay, but it's currently what we're doing. If we are going to incorporate this language, there should be maybe by a certain date, established methodology, and a default in case OHCD does not do its work; 80 percent AMI or whatever, right. I mean, it's what we're doing now. It's what we're doing now, is we're establishing the rate. ACTING CHR. ONISHL Okay. Mr. Kaneali`i-Kleinfelder, go ahead. Your light was on first,plus you referred the withdrawal. MR. KANEALI`I-KLEINFELDER: Okay. Thank you, Acting Chair Onishi. RPT, sorry, listening to Administrator Costa, it's what we do now, except right now affordable rental rate is defined in our Code. And there is no—I don't know, as established by the financings of an incorporation. I guess, then, my question is to you, Administrator, are we not breaking this all apart and defining it every year and giving a rate back to RPT to really nail down the market? If we're trying to develop and refine this—like Ms. Kagiwada's amendment that she walked in the door, we're looking to do that so we create the equity and subsidization and bring more people to the affordable rental class—and you're saying it's what we do now, then I'm really confused as to why we aren't doing it in a way that starts to build the equity that we're all seeking to create in different forms of amendments and bills. Page 60 Hawaii County Council-13 May 21,2025 MS. COSTA: Currently, OHCD sets the rate schedule to a particular methodology. And so I'm assuming with this amendment that you are asking for a different methodology. MR. KANEALI`I-KLEINFELDER: I don't like that word. Assume is a scary word. MS. COSTA: Right now, we set the rate schedule not by administrative rule. We have a policy that we use, the 75 percent of the 110 or whatever our payment standard is. So 75 percent of our payment standard, that's the methodology we currently use to establish the rent rate. Every year, when the payment standard changes every October, we reset the rate with an internal policy, and that's what we're currently doing now. So this is saying that OHCD would continue to set the rate schedule to give to RPT. MR. KANEALI`I-KLEINFELDER: Okay. I apologize because I'm reading the amendment to the bill, and I'm going back to reference the original language that we began this bill that would amend the existing Code. So, currently, yes, 75 percent of the payment standards. So understanding where we startedsorry, RPT, Administrator. No, but what I like is the direction of where we're actually allowing the department to dive into what Mr. Inaba brought forward as a bill to change, that we're providing a little bit more of a spread equity across the island, and noting that we have different areas with different incomes and different rental rates, and building in the equity that Ms. Kagiwada is shooting for, but laying it all back to the department, or the Office of Housing and Community Development, to be able to really specify how you want that market to look and provide that rate to RPT. To me, that's beautiful. If it needs to say yearly or annually shall review or whatever it shall be, then I think that should be in there. I think that'll beI think that's a gorgeous blend of two different departments and policy creating the best bet for the people of Hawaii County. That's how I see it. But if I'm seeing it wrong and I'm not understanding something, please tell me because that's where my brain's at right now. MR. JO: Can I take a stab at it? MR. KANEALI`I-KLEINFELDER: Yes,please. MR. JO: Okay. So I think the issue is the fact that Office of Housing and Community Development is utilizing their payment standards, which is for a totally separate program with different goals. And that data is being utilized to set this affordable rental rate, which has its own set of goals and expectations. And I think the amendment, what it's doing is it's inferring that you're going to create a Page 61 Hawaii County Council-13 May 21,2025 totally separate process. So now they're doing twice the amount of work, right. You're going to be doing your payment standards for Section 8. You're going to be doing AMI for Real Property based on specific zip code. In my mind, it would add much more complexity for Office of Housing, Real Property Tax, and for the public. Because, now you have all these different standards based off of what could end up being a huge list of zip codes. And so, in my mind, the original legislation is aimed to simplify that process—take Housing away from that process so they can focus their resources on Section 8 and the payment standards and whatnot, and just decoupling it. We would go straight to HHFDC's numbers and utilize those numbers to make it much more simpler. You do bring up the inequity, right, because now we're going to AML And so that's something that might need to be addressed. But that's my take on it. I don't know. MR. KANEALI`I-KLEINFELDER: Thank you, Mr. Jo. MS. COSTA: What he said. I'm really having a hard time not channeling Administrator Miura right now. The amount of additional work to create a I mean, it's possible for OHCD to create an affordable rental program rental rate based on, you know, really creating a new program and collecting data. It's possible but that was not the intention of this bill. The intention of this bill was to simplify and to give RPT a rate that they could use to run this program. So a lot of factors involved in putting itcurrently, it's with OHCD. Currently, we have a methodology that we use. We could stick with that, continue to do that. If you wanted to change the methodology, then that's a different discussion for I think a different conversation. MR. KANEALI`I-KLEINFELDER: Understood. If no amendment were to pass today, then the bill written right now would be 80 percent of the AMI by HHFDC. That's pretty straightforward. But I like the County component. When we start to remove the County component and we don't lean in to how we address housing in this County, then I feel like we've missed a possibility to better our residents. So I'm trying to find that nice mutual middle ground MS. COSTA: I understand. MR. KANEALI`I-KLEINFELDER: Where your office, which is the Office of Housing and Community Development, which should be on the pulse of the people of this County helping drive RPT's rate so that we get the market that we want. MS. COSTA: Yeah, understood. MR. KANEALI`I-KLEINFELDER: Okay, thank you. I yield. Page 62 Hawaii County Council-13 May 21,2025 ACTING CHR. ONISHL Okay. Chair Inaba. MR. INABA: Thank you. I think we've had a lot of discussion about this. I bring up the same concern with the current amendment, being that we're giving administrative rulemaking authority to OHCD for a Real Property Tax program. And I want to ask Deputy Keyra Wong, is that advisable? Or is that a legally advised method, to have one office making administrative rules for a program run by a completely different department? (Note: At this time, Deputy Corporation Counsel Keyra Wong came forward to address the members of the Council.) MS. WONG: Good afternoon. Keyra Wong, Deputy Corporation Counsel. Thank you for that question. I do think it's problematic if we were to move forward with Ms. Galimba's amendment being that Chapter 19 is for Real Property Tax for the administration, assessment, and collection of real property tax, including exemptions, dedications of lands, and appeals, etcetera. So I think it would be problematic if we were to amend the definition to have Housing do that work where Chapter 19 focuses on real property tax. MR. INABA: Thank you, Deputy Wong. With that, I won't be supporting this amendment. And based on the legal advice provided by Corporation Counsel, I wouldn't advise members of the Council to support it either. Thank you, Chair. ACTING CHR. ONISHL Okay. Ms. Kagiwada. MS. KAGIWADA: Thank you, Acting Chair. So,just while I have you thereI know; you can give me a little leeway—does the amendment that I propose have the same concerns with just having the two AMIs utilized? MS. WONG: Again, Keyra Wong, Deputy Corporation Counsel. I don't think there's that same concern that I have with Council Member Galimba's amendment. I think this is different. What yours is speaking to is different. MS. KAGIWADA: Okay, thank you. Thank you so much. And I guess for this amendment, back to what Administrator Costa was saying, the intention of the bill being get away from the payment standards, get rates to RPT earlier, and my understanding from Council Member Inaba was also to try to entice especially those west side higher rate landlords to enter the program, and I guess I'm just going to add here "while not creating inequities in East Hawai`i," it's a lot. And I understand. If we really don't want to be doing tinkering and we want to see how some of this plays out, we have the long-term rental bill that hasn't even gone into effect yet. And in some ways, I feel like we should just not do this bill at all and let that go into effect and see how things go. But if we are going to go ahead with this bill, I just strongly encourage folks to think about the inequities that will be created if we do not amend in any way. I yield. Thank you. Page 63 Hawaii County Council-13 May 21,2025 ACTING CHR. ONISHL Okay. Ms. Galimba. MS. GALIMBA: Thank you. Just on the "by administrative rule"part, I can see now how it would not be appropriate. So I would definitely want to take that out if we were to move forward with that concept. I did talk to the Corporation Counsel that was here yesterday and it seemed okay yesterday, but then we (inaudible) MS. VILLEGAS: Excuse me, Council Member Galimba, can you speak into your microphone? Thank you. MS. GALIMBA: Sure. So, yes, I'm learning on the job. So, definitely understand that that part is problematic. But I think the concept is more what I was wanting to get at, and that there actually be a written policy rather than sort of making it up as we go. So that was more what I was trying to get at by that. Thanks. ACTING CHR. ONISHL Okay. Ms. Kimball. MS. KIMBALL: Deputy Administrator, I see that the effective date for this ordinance is January 1, 2026. Given that, that would mean that the eligibility period would open up under this changed definition, and then that would impact people's taxes in the assessment. What's the actual time frame for implementation? MR. JO: So if the bill passes, it would be effective January 1st, 2026. However, with that said, we would begin utilizing HHFDC's numbers to establish the rental rates based on bedroom count beginning July when those numbers come out. So we'd start to accept applications for the next fiscal year. MS. KIMBALL: Like September 2? MR. JO: Earlier. So normally, right, we get the numbers from Housing in October, shortly after October 1st. But this would actually allow the numbers to come out earlier. The application period would start earlier. It would start in July of this year, so just in a few months. And we would accept those applications so that the program would stand up, and people would start receiving the benefits come July 1st of 2026. MS. KIMBALL: Okay, so if this takes effect now, or the effective date 2026 is ACTING CHR. ONISHL Ms. Kimball, are you talking about the amendment? MS. KIMBALL: Yes. It's relevant to the amendment. ACTING CHR. ONISHL Okay. Page 64 Hawaii County Council-13 May 21,2025 MS. KIMBALL: Thank you. So, if it takes effect this year or 2026, did you say this July the applications will open? MR. JO: Yeah, I'd have to check with our Corporation Counsel, because my understanding is if it's effective January 1st of 2026, that's our date of assessment. And so it's in play as of January 1st, 2026. But because the application period precedes that date, it would kind of go into effect when we get these rates. MS. KIMBALL: Okay. I'd like an answer from Corporation Counsel if they concur with that timing before I move forward. MS. WONG: Keyra Wong, Deputy Corporation Counsel. I would ask for a little bit of time so that I can double-check. Can you reiterate your question so I understand? MS. KIMBALL: I think the author can assume, being that he and I maybe have the understanding that this couldn't actually affect until the next cycle. MS. WONG: 2027. MS. KIMBALL: Yeah. MS. WONG: I think it's 2027. I just want to double-check. MS. KIMBALL: Okay. We'll put a pin in there because we are talking about the amendment, which I think the bill itself does two things now. It changes the methodology from payment standard to AMI, and it changes 75 to 80 percent. And there's two things that actually have conflating, potentially, impacts. And while I like the way the amendment is going—and I do hear the concerns about the rulemaking too; I think that is problematic—it becomes a question of do we keep the payment standard or AMI essentially, because I would presume Housing would just go back to payment standard and present that to—like you said, that's what you're doing now. And so, really, all the bill would be changing is 75, 80, which I think is what Council Member Kagiwada is trying to address, is that inequity, the potential for the extension of that inequity. So, I can't support the amendment in the current format. But I guess what I'm getting to is I think there is time to find the right amendment, and I don't think we've landed on it yet, nor do I think the bill is quite ready for primetime, as Council Member Chung would have said. Thank you. ACTING CHR. ONISHL Okay. Mr. Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you. Ms. Wong,just real quickly, did the difference in this amendment—the rate schedule as established by admin rule from Office of Housing and Community Development versus the original Page 65 Hawaii County Council-13 May 21,2025 language of Chapter 19, affordable rental rate not toa rent not to exceed 75 percent of the payment standards as established by the Office of Housing and Community Development, what am I missing there? Because both refer back to Office of Housing and Community Development. One's a payment standard, one's an AMI-based. But is it just the administrative rule language? MS. WONG: Deputy Corporation Counsel Keyra Wong. Yes. I think the amendment is requiring Housing to do something under the Code, Chapter 19, which is for the purpose of Real Property Tax Division. That's the difference. You're looking at the MR. KANEALI`I-KLEINFELDER: Aren't they doing that already? MS. WONG: Yes. Real Property Tax does get the numbers from Housing, but then if you're going to go with the amendment, you're asking them to do something that technically doesn't fall under Chapter 19's jurisdiction for Real Property Tax Division. MR. KANEALI`I-KLEINFELDER: By the wording "administrative rule." Because, that's the only difference that I see. Both is OHCD. Both is the rate. MS. WONG: Yes, but legally you're tasking that work to be done by an agency that doesn't fall under Chapter 19. MR. KANEALI`I-KLEINFELDER: So the original language of Chapter 19, a rate as established by Office of Housing and Community Development, is different from the rate schedule as established by admin rule of the Office of Housing and Community Development? MS. WONG: Yes, I see that as different things. MR. KANEALI`I-KLEINFELDER: That's very different. MS. WONG: Yes. MR. KANEALI`I-KLEINFELDER: To the point of being "unable to proceed" different. MS. WONG: I would say it's a legal concern to task an agency with the duties that fall under somebody else's duties under Chapter 19. So Housing does what Housing does, and then they give the numbers to Real Property Tax, right. They have a policy that they do. Going with the amendment would require them under the law to do something that Chapter 19 doesn't foresee another agency doing. MR. KANEALI`I-KLEINFELDER: Okay, thank you. Page 66 Hawaii County Council-13 May 21,2025 ACTING CHR. ONISHL Okay. Ms. Kagiwada. MS. KAGIWADA: No, not on the amendment. Thank you. ACTING CHR. ONISHL Okay. So we're going to take a roll call on the amendment, 206.6. MS. GALIMBA: Given that the administrative rule language is problematic, and I can see that, I will be withdrawing the amendment. But I'm hoping for an opportunity to bring forward another amendment without that language so that we can address some of the discussion that we've been having. Thanks. Withdraw Motion Ms. Galimba withdrew her motion to amend Bill 39, to Amend: Draft 2, with the contents of Comm. 206.6. MS. KAGIWADA: Are we back to the main motion? MR. HENRICKS: It's unclear to me where we're at. ACTING CHR. ONISHL Okay, you did withdraw? Okay, so she did withdraw 206.6. MR. HENRICKS: Thank you, Vice Chair Onishi. ACTING CHR. ONISHL Now, we're back to the main motion. Ms. Kagiwada. MS. KAGIWADA: Thank you. Back to the main motion. I would like the opportunity, if people still feel like this isn't quite right, to make another attempt at making sure that we aren't correcting something for one part of the island and inadvertently potentially doing harm to the other part of the island. I would love to. It sounds like we're not in a rush because of the timing on this. I would love to have the time to do that. So I respectfully ask that we postpone this. ACTING CHR. ONISHL So are you making a motion? MS. KAGIWADA: I'm asking theI guess I'm looking to the author of this to see if that would be amenable, or do you want me to do it? MR. INABA: (Inaudible.) MS. KAGIWADA: Okay. Motion to Postpone: Ms. Kagiwada moved to postpone Bill 39, Draft 2, to June 4, 2025. Seconded by Ms. Galimba. Page 67 Hawaii County Council-13 May 21,2025 ACTING CHR. ONISHL On the discussion of postponement, Mr. Kaneali`i- Kleinfelder. MR. KANEALI`I-KLEINFELDER: I think from what Mr. Jo shared as far as there not being a rush to do this, the enacting date, and I think a want from this body to find something that really fits the County and from what we've learned today, I'd like to see what comes out of this body and just give it the opportunity. If nothing comes of it, then on June 4 h we pass the bill and we go from there. If something great comes out of it from the discussion today from the different departments on what we learned, then I think that's actually a better opportunity for the people of the County. Thank you. ACTING CHR. ONISHL Ms. Kimball. MS. KIMBALL: Thank you. There was a time in my life where I was that lady in the grocery store filling out my WIC (Women, Infants, and Children) coupons, and waiting, the people behind me, like "Get out of here, lady." Right? So I want to bring this home. We're talking about a potential that some folks here in East Hawaii would have their rent bumped up by $100, $150. That$100, $150 might mean they can't buy diapers now. They can't buy formula now. I've been there. I know what it's like to say, "I'm going to mail my electric bill to the gas company and my gas bill to the electric company, and that will buy me a month." Right? We shouldn't rush something that is going to have that level of consequence realistically on people's lives. So there's no rush on this. Let's take our time. I would like to postpone this. I think we need to think about this equity issue very seriously before we make this change. Thank you. ACTING CHR. ONISHL Okay. On the postponement, anyone else? Okay, Administrator Costa, can you please come up? I didn't get to say anything, but then for the postponement, right. Are you fine with the existing bill that's being proposed? Or you would rather see nothing happen? I'm sorry. MS. COSTA: Yeah, I'm that's a challenging question to ask. I'm very motivated by the ability to incentivize landlord participation in the Section 8 program because our Section 8 program directly impacts the families that Council Member Kimball is speaking to. We work with families that are primarily 60 percent and below AML And the disparity in rental availability in the high rent areas, because there is not enough incentive for landlords to participate in our Section 8 program, is the disparity that I think is at the core of what we're speaking to. So the strength of this bill in front of us today, to me, is in the language around increasing Section 8 participation. This goes a long way to encourage participation in this program in Waimea, in Kailua-Kona. That's the strength of this bill. Page 68 Hawaii County Council-13 May 21,2025 On the RPT side, we're not certifying the individuals that are in those units. So we're not assuring anything except lower rents across the island. And in looking at the data that RPT has provided, many of the landlords that are participating in the affordable rental program percentagewise aren't charging that highest rent anyway. I think it was like 10 percent. Maybe 6 percent were at the max. So, to make an assumption that it's going to raise the entire affordable rental program rents across the board, we do have data to say it could in that 6 percent. It would be great to even look at that 6 to 12 percent to see where geographically they are. Those might be in the high-rent areas anyway. That's an assumption I'm making. So the bill before us I personally am okay with, right, or I wouldn't have invested this much time sitting here. ACTING CHR. ONISHL Yeah, thank you. MS. COSTA: Can we do better? Sure. We can do better. But can we do better by June 4�h or June 6�h? ACTING CHR. ONISHL And that can be done on another day. MS. COSTA: That's to you, right; can we do better by June 6 h?. ACTING CHR. ONISHL Okay, thank you very much. MS. COSTA: (Inaudible) a better policy. ACTING CHR. ONISHL Thank you. MS. VILLEGAS: Chair? ACTING CHR. ONISHL Yes, go ahead, Ms. Villegas. MS. VILLEGAS: I apologize for chiming in so late on this. First off, I want to say I appreciate the comments by Council Member Kimball. I, too, have been there. And I lived in West Hawaii, right here in Kona, as a single mom with my food stamps and my WIC and my little girl, and have been on that precipice. One month I made $3.80 too much, and it cut me off of being able to get supplemental help to pay for childcare so I could work. I would feel remiss if I didn't say this: There are some of us on the Council serving with true intentions and deep hearts, but aren't as familiar with the history of this island and the history of governance. In my time of service, I listened to hundreds if not thousands of constituents express their frustration and concerns about equitable distribution of resources between the east and west side of the Big Island. So I would hate for any legislation that passes to create inequitable or negative repercussions to those living in affordable housing programs on the east side. However, I firmly believe we are past time for some legislation that would help support affordable housing Page 69 Hawaii County Council-13 May 21,2025 incentives for the west side at the small risk of a slight deviation and change from the east side, which I share Administrator Costa's perception that it's very slim that those landlords will change their rental fees even if they could. We have the highest demand for housing on this side. We also have a very high population of people who travel across the island to work in the jobs here. So anything and everything that can be done to provide incentives for affordable housing, especially on the west side, I think should take priority. When we look at a risk-versus-reward analysis, the rewards would greatly outweigh the risks. And as a born-and-raised kama`aina girl having been under those circumstances, I would ask for the support of Council Members to move forward on this bill which has been worked on so diligently to come up with the best-case scenario. And so I would just ask that it be supported for equitable distribution of potential benefits to the west side's housing market and the inclusion of more affordable housing opportunities and tax ACTING CHR. ONISHL We're on the postponement. MS. VILLEGAS: I do not support the postponement. I would ask that we vote on this legislation today. I yield. ACTING CHR. ONISHL Thank you. Ms. Galimba, wrap it up and then we're going to move on. We're going to vote on it. MS. GALIMBA: Very briefly, yes. I would support the postponement. I will say that the bill as it stands, if it passes today, is good, and I think will have a lot of good effects. I'm only voting for a postponement because I think we can make it a little bit better. But if it passes, it's going to be good. So I'm not saying it's bad. ACTING CHR. ONISHL Okay. So, Mr. Clerk, on the postponement let's do a roll call. Vote on Motion to The motion to postpone Bill 39, Draft 2, to June 4, 2025, Postpone: was carried by the following roll call vote: (Approved) Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, and Kimball—5. Noes: Council Members Inaba, Kierkiewicz, Villegas, and Acting Chair Onishi —4. Absent: None. Excused: None. Relinquish Chair: At this time, Acting Chair Onishi relinquished the chair to Chair Inaba. Page 70 Hawaii County Council-13 May 21,2025 STATEMENTS The Chair directed the Council to proceed to the next order of business, FROM THE Statements from the Public. PUBLIC ON BILL 40 The following individual registered to speak and came forward when called by (COMM. 207): the Chair: Alohalani Hope Cermelj: Comment. (Note: At this time, Ms. Cermelj also provided testimony on Bill Nos. 41 and 42.) Bill 40: AMENDS SECTION 25-8-33 (CITY OF HILO ZONE MAP), ARTICLE 8, CHAPTER 25 (ZONING) OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), BY CHANGING THE ZONE MAP CLASSIFICATION FROM AGRICULTURAL— 10 ACRES (A-10a) TO AGRICULTURAL—5 ACRES (A-5a) AT PANA`EWA, HILO, HAWAI`I, COVERED BY TAX MAP KEY: 2-2-048:013 (POR.) (Applicant: Ho`oulu-Lahui) (Area: approx. 12.043 acres) The Windward Planning Commission forwards its favorable recommendation for this requested change of zone, which would allow the applicant to subdivide the property that currently houses Kua O Ka La New Century Public Charter School and enable the school to transition from a lease agreement to fee-simple ownership. The property is located at 345 Makalika Street. Reference: Comm. 207 Intr. by: Council Member Kimball (B/R) First Reading: May 7, 2025 Vote on Bill 40: Ms. Kimball moved to pass Bill 40 on second and final (Adopted) reading. Seconded by Ms. Kierkiewicz and carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—8. Noes: None. Absent: Council Member Kaneali`i-Kleinfelder— 1. Excused: None. (Note: At the start of Bill 40, Ms. Alohalani Hope Cermelj made a comment in regards to Bill 41.) Page 71 Hawaii County Council-13 May 21,2025 Bill 41: AMENDS ORDINANCE NO. 24-32, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR ENDING JUNE 30, 2025 Decreases the appropriation in the Transfer to Housing Fund account($451,221); and appropriates the same to the HOME Program Income Repayment account. Reference: Comm. 210 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) First Reading: May 7, 2025 Vote on Bill 41: Mr. Hustace moved to pass Bill 41 on second and final (Adopted) reading. Seconded by Ms. Kimball and carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kimball, Onishi, Villegas, and Chair Inaba—7. Noes: None. Absent: Council Members Kaneali`i-Kleinfelder and Kierkiewicz—2. Excused: None. (Note: At the start of Bill 40, Ms. Alohalani Hope Cermelj made a comment in regards to Bill 42.) Bill 42: AMENDS ORDINANCE NO. 24-32, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR ENDING JUNE 30, 2025 Increases revenues in the Interest—Other Federal account($660,000); and appropriates the same to the Emergency Rent Assistance 2 COVID-19 account ($600,000), Hawaii Island Landlord/Tenant Mediation account($10,000), and 2021 Hawaii Island Homeowner Assistance Program-Administration account ($50,000). Reference: Comm. 211 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) First Reading: May 7, 2025 Page 72 Hawaii County Council-13 May 21,2025 Vote on Bill 42: Mr. Hustace moved to pass Bill 42 on second and final (Adopted) reading. Seconded by Mr. Onishi and carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kimball, Onishi, Villegas, and Chair Inaba—7. Noes: None. Absent: Council Members Kaneali`i-Kleinfelder and Kierkiewicz—2. Excused: None. REFERRALS FOR The Chair directed the Council to proceed to the next order of business, Referrals EXECUTIVE for Executive Session. SESSION: Comm. 284: BOARD OF ETHICS PETITION 2024-04: REVIEW OF A PETITION ALLEGING A COUNTY EMPLOYEE VIOLATED THE HAWAI`I COUNTY ETHICS CODE From Corporation Counsel Renee Schoen dated May 2, 2025, requesting an attorney-client confidential discussion to consult with the Council regarding the above-entitled matter. Motion to Close Ms. Kimball moved to close file on Comm. 284. Seconded File: by Ms. Galimba. CHR. INABA: Checking if the body would like to go into Executive Session to discuss this matter with the Corporation Counsel. Council Member Kimball. MS. KIMBALL: No, I'm fine with the recommendation that's provided in the guidance from Corporation Counsel. I would be comfortable in moving forward on the vote with that. CHR. INABA: Thank you. Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. I thought that Corporation Counsel was requesting that we go into Executive Session. Is that not the case? CHR. INABA: It always is the case. So it's a matter of whether the Council wants to enter into it. MS. KAGIWADA: Okay, it's only if we want to. Okay. I'm okay. Thanks. MS. VILLEGAS: Chair? CHR. INABA: Council Member Villegas. Page 73 Hawaii County Council-13 May 21,2025 MS. VILLEGAS: I'm also okay with the recommendation of Corp. Counsel on this issue. I yield. CHR. INABA: All right, seeing no one wanting to enter into Executive Session MR. HENRICKS: Understood. I just would like to—if you'd just give me two minutes to talk to Corporation Counsel before any further action is taken? CHR. INABA: Sure. We're in a brief recess. Thank you. Recess: At 1:50 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 1:53 p.m. Vote on Motion to Ms. Kagiwada moved to enter into Executive Session in Enter into order to hold attorney-client privilege discussion regarding Executive Session: Communication 284, as authorized by Section 92-5(a)(4) of (Approved) the Hawaii Revised Statutes. Seconded by Ms. Galimba and carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. CHR. INABA: We'll be entering into Executive Session at this time. Recess: At 1:54 p.m., the Chair called for a recess in order to clear the room. Reconvene: The meeting reconvened at 2:16 p.m. CHR. INABA: Council Member Kagiwada, if you could just give us a summary of what was discussed in Executive Session. MS. KAGIWADA: Sure, Chair, I can do that. We met in closed session to review a petition alleging a County employee violated Hawaii County ethics codes. We asked questions of our attorney and got our questions answered. Thank you. Page 74 Hawai`i County Council-13 May 21,2025 CHR. INABA: Thank you, Council Member Kagiwada. With that,there's a current motion on the floor to close file on Communication 284. All those in favor,please say "aye." Vote on Comm. 284: The motion to close file on Comm. 284 was carried by the (Filed) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, and Chair Inaba—8. Noes: None. Absent: Council Member Villegas— 1. Excused: None. OTHER The Chair directed the Council to proceed to the next order of business, Other BUSINESS: Business. (There were none.) ANNOUNCE- The Chair directed the Council to proceed to the next order of business, MENTS: Announcements. (Note: At this time, Council Members made announcements regarding community events, activities, and other unofficial business.) ADJOURN- There being no further business, Chair Inaba adjourned the meeting at 2:19 p.m. MENT: AUG '0 6 2025 Council Approval: JH/dg Page 75