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HomeMy WebLinkAboutMIN FC 2025/07/08 (2022-2024) DRAFT Committee on Finance 14th Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii 96720 July 8, 2025 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 11:40 a.m., in the Council Chambers, Hilo, by Mr.Matt Kaneali`i-Kleinfelder, Chair. ROLL CALL: Present: Mr. Matt Kaneali`i-Kleinfelder, Chair Mr. James E. Hustace, Vice Chair Ms. Michelle M. Galimba, Member Mr. Holeka Goro Inaba, Member .............. Ms. Jenn Kagiwada, Member Ms. Ashley L. Kierkiewicz, Member(came in later) Ms. Heather Kimball, Member Mr. Dennis "Fresh" Onishi, Member(came in later) Ms. Rebecca Villegas, Member (came in'later) STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: The following individuals registered to speak and came forward when called by the Chair;- - - Hope Alohalani,Cermelj: Res. 232-25 (Comm. 370), in support. Timothy Iowen: Bill 38 (Comm. 203), in support. (representing Malama O Puna and Black Sands Community Association) Eileen O'Hara: Bill 38 (Comm. 203), in support. (representing Hawaiian Shores Community Association) COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 23.14: REPORT OF FUND TRANSFERS AUTHORIZED: MAY 1 — 15, 2025 From Acting Controller Wilson Crider, dated May 29, 2025. FC-14 July 8,2025 Motion to Close File: Mr. Inaba moved to close file on Comm. 23.14. Seconded by Mr. Hustace. CHR. KANEALI`I-KLEINFELDER: Council Members, any discussion on the communication? Council Member Hustace. MR. HUSTACE: Thank you, Chair. If I may go through some of these, I have a couple questions for some of the departments on just some clarity for these if that's alright with you? Thank you, Chair. Alright. First question is for Fire Department, or I don't know who could address some of these things specifically, maybe it's directly to Finance then. Alright. Well the question is related to, and it may not be appropriate to answer this question here and now but in the explanation it says expected to transitioninto'County employees and I'm just curious what the progress is looking like'at this point. I don't know, Director, if you could even address that question of mine though. (Note: At this time, Finance Director Diane Nakagawa came forward to address the members of the Committee.) MS. NAKAGAWA: Good morning, Council Members. Diane Nakagawa, Finance Department. I don't know the details of that, but I do know there were some challenges in this plan to transition these pilots to County workers. But I would rely on Fire to have more details, and I believe they just walked in the room so they could probably provide you With some additional information. MR. HUSTACE: Sure. Thank you. If we could have Fire come up. I just had a question on the explanation piece there. If you could just push the button and introduce yourself that would be awesome. Thank you. (Note: At this time,'Department of Fire Accountant Nikol Lonokapu came forward,to address the members of the Committee.) MS. LONOKAPU: Hi. Good morning. Nikol Lonokapu, Accountant for Fire. MR. HUSTACE: Thank you, Nikol. Yeah this question is just really to the explanation piece, and I was just curious on how that transition is going for helicopter pilots and operations? MS. LONOKAPU: It's still not complete. It's been pretty complicated. It's actually we've been working on it for several years, but we are almost at completion. MR. HUSTACE: Okay. MS. LONOKAPU: Yeah. Page 2 FC-14 July 8,2025 MR. HUSTACE: Okay. MS. LONOKAPU: We're not quite there yet. We should be within the next few months. MR. HUSTACE: Okay. Good to know. Thank you so much. Really appreciate that. Then if someone from Public Works is here; Ms. Kalua-Lewis I believe. (Note: At this time, Public Works Business Manager Kelsey Kalua-Lewis came forward to address the members of the Committee.) MS. KALUA-LEWIS: Good morning, Council Members. Kelsey Kalua-Lewis, Business Manager, Public Works. MR. HUSTACE: Thank you, Ms. Kalua-Lewis. Just a question"on, let's see, this is on Automotive Division, if you could just elaborate what you mean about uncontrollable costs and just explore on that a little bit and expand on that? MS. KALUA-LEWIS: Yeah. So for Automotive Division the heavy equipment parts and supplies, we kind of call it an uncontrollable cost due to our kind of aging fleet of heavy construction equipment. Some years we do have more need to buy parts and supplies. ThisWas one of the years where we transferred an additional $200,000 just to cover anything that might come up through the rest of the fiscal year. MR. HUSTACE: Okay. It's just an interesting choice of words about this uncontrollable. So yeah, thank you for the explanation on that. Thank you. MS. KALUA-LEWIS: No problem. MR. HUSTACE: Thank you. Thanks for your patience, Chair. Next one is for Office of Management I believe, if someone could address a question for Office of Management? The question is about their digital camera equipment. What is being done with some of the older equipment and or what is the purpose and use of some of this equipment? MS. NAKAGAWA: Good morning. Diane Nakagawa, Finance. I don't have the details on that. Normally if any type of equipment is no longer working or not productive we would do a disposal on that equipment. That is normally the case. And the replacement of new equipment I can imagine would be to take pictures at various events to make the community aware of things that are happening. Again, I don't have that details, but I would assume this is what that would be used for. MR. HUSTACE: I appreciate that, Director. Yeah. Thank you. No, I'm sorry to put you on the spot there, Director. Page 3 FC-14 July 8,2025 MS. NAKAGAWA: No worries. MR. HUSTACE: And actually for this communication the last question is actually for Ms. Kalua-Lewis again. Sorry. Thank you, Director. Sorry, Ms. Kalua-Lewis. Apologies. Things are kind of in different orders here. So the last there is for Building Division. Funds are needed for un-budgeted equipment of 33 iPad Airs, but the transfer is only for $1,200. So is this just additional funds that are needed for the purchase of the 33? MS. KALUA-LEWIS: Yes. It was additional funds needed to support the purchase of the 33 iPad Airs. MR. HUSTACE: Okay. Because it just says funds are needed for un-budgeted equipment. It doesn't say that this is basically additional funds are needed. It just says that it's just going toward. Anyway, if we can put that inhere. But thank you. MS. KALUA-LEWIS: No. Thank you.- - MR. HUSTACE: Thank you, Ms. Kalua-Lewis. Thank you, Chair. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Onishi. MR. ONISHL Thank you, Chair. Just one question. So you have for traffic signals and,lights, transferring$170,000 to Highways for this tanker fund. My question is I had asked before to get crosswalk flashing lights on Kalanianaole in Keaukaha. So I'm just hoping that this funding that is being taken away didn't affect my request for those flashing lights. MS. KALUA-LEWIS: No, it didn't. I believe the one in front of Baker; I thought that was installed. I would have to double check. But I knew that was one of'our Acting Director's priority projects to get the flashing beacons. MR. ONISHL Correct. Okay. MS. KALUA-LEWIS: So no, this didn't pull away anything from Traffic. Traffic was able to purchase everything they wanted to with the additional funds being able to go to Highways. MR. ONISHL Okay. And the other one is at Andrews, that intersection. MS. KALUA-LEWIS: I would have to double check on Andrews. I'm only aware of Baker. MR. ONISHL Okay. If you can let me know on that one? MS. KALUA-LEWIS: Will do. Page 4 FC-14 July 8,2025 MR. ONISHI: Thank you. MS. KALUA-LEWIS: Thank you. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay. Council, any further questions? Okay,just noting it is July; we've entered a new fiscal year, and this is a total request for $1.84 million. I do like the end of the year; we see a lot of these for the end of the year. A lot of funds being over in some accounts and under in others. I would expect we'll see a few more not only today but in further agendas. With that, Mr. Clerk, motion is on the floor to close file on Communication 23.14. All in favor? Vote on Comm. 23.14: The motion to close file on Comm. 23.14 was carried by Filed the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder-"8. Noes: None. Absent: Committee Member Kierkiewiacz— 1. Excused: None, Comm. 23.15: REPORT OF FUND TRANSFERS AUTHORIZED: MAY 16 —31, 2025 From Acting Controller WilsonCrider, datedJune 14, 2025. Motion to Close File: Mr. Inaba moved to close file on Comm. 23.15. Seconded by Mr, Ilustace. CHR. KANEALI`I-KLEINFELDER: Any discussion? Council Member Kagiwada. MS. KAGIWAI)A;,; Thank you. Is Parks here? Thank you. As you're coming up, I just had a question about the item that is taking the $40,700 from the Nutrition,Program going to the Alae Cemetery it looks like. Can you tell me why that money;for the Nutrition Program wasn't able to be used? (Note: At this time, Parks and Recreation Business Manager Charmaine Felipe came forward to address the members of the Committee.) NfS. FELIPE: Good morning, Felipe, Business Manager for Parks and Recreation. So the Nutrition program hasn't been able to reach their capacity, and we needed funds over at the Alae Cemetery and the Nutrition funds were available to transfer. Page 5 FC-14 July 8,2025 MS. KAGIWADA: Okay. Do you have anyI don't know, you might not be the right person, but do you have any sense of why the Nutrition Program isn't reaching its capacity? MS. FELIPE: Basically participation. And that's something that we're looking at. Seniors after COVID (Coronavirus Disease) are not wanting to come back to the nutrition sites, the congregate meal sites. MS. KAGIWADA: I see. So they have to go there in person to have the meals and that's been slow on uptake? MS. FELIPE: Yes, because they don't qualify for the home delivered meals. MS. KAGIWADA: Okay. Alright. Happy to talk with you offline about it but I was just interested about that. Thank you. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay. Seeing no further discussion, motion is on the floor to close file on Communication 23.15. All in favor? Vote on Comm. 23.15: The motion to close file on Comm. 23.15, vas carried by Filed the following voice vote` Ayes: Committee Me'mbers'Galirnba,Hustace, Inaba, Kagiwada, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Kierkiewicz— 1. Excused: None. Comm. 24.1 DEPORT OF'CHANGE ORDERS AUTHORIZED: APRIL 16—30, 2025 From ,inance Director Diane Nakagawa, dated June 4, 2025, transmitting the above report pursuant to Section 2-12.3 of the Hawaii County Code. Motion to Close File: Mr. Inaba moved to close file on Comm. 24.12. Seconded by Ms. Galimba. CHR. KANEALI`I-KLEINFELDER: Discussion? Council Member Kimball. NfS. KIMBALL: Yeah, thank you. I just had a question, Director, about the contract with Title Guarantee and if you could just describe to us what is covered under that agreement? (Note: At this time, Finance Director Diane Nakagawa came forward to address the members of the Committee.) Page 6 FC-14 July 8,2025 MS. NAKAGAWA: Hold on just a quick second, let me just get to that one. MS. KIMBALL: While the Director is looking, the reason I actually wanted to call attention to this is it's been recently brought to my attention a problem that is particular in my district but may affect the rest of you folks as well, which is the ability to get clear title for properties that have back taxes. So I have, for example, a property in my district that has over $200,000 due in unpaid property taxes and because we cannot get clear title, we cannot proceed to the auction action. So I'm just interested to clarify what agreement and support we have from Title Guarantee. Administrator Miura knows exactly what I'm talking about. (Note: At this time, Real Property Tax Administrator Lisa Miura came forward to address the members of the Committee;), MS. MIURA: Hi. Lisa Miura, Real Property Tax Administrator. I apologize. I did not realize this was on here. This is an option year for Title Guarantee who has been the only bidder for title services to provide litigation guarantees for our real property tax sales. We have two a year and the most that they can handle is 200 per tax sale. And I can get into more specifics, but that's the basics of it. They do a preliminary search and then they also have to run updates right before the sale and right after to see if there's been any recordation. MS. KIMBALL: Thank you, Administrator. So yeah, I'm just putting it out there so that we can all kind of put our thinking caps on about what might be a solution to this because I haven't asked the Real Property Tax Department to run the numbers about what were actually due, but for some of these properties in order tei resolve security issues, to do a judicial foreclosure, any of that is going to require a title report and require for us to get clear title and Title Guarantee is not actually providing that service for some of these properties. So I think we need to come up with another mechanism to resolve that issue. Thank you, Chair. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Hustace. MR. HUSTACE: Thank you, Chair. I have two questions on this change order communication. The first is regarding the Waikoloa Road rehabilitation, so Public Works. Thank you, Ms. Kalua-Lewis. The contract came in at$25 million but nerve we're under $3 million. We had this discussion during the budget process. One item on the capital budget is for the Waikoloa Road rehabilitation. So why do we have something on the capital budget, I forget what the figure was, but maybe it was a quarter of a million, $250,000, and if we're coming under this contract and yet are we going back out to bid for something else? And we're under $3 million here so why isn't the project being completed? (Note: At this time, Public Works Business Manager Kelsey Kalua-Lewis came forward to address the members of the Committee.) Page 7 FC-14 July 8,2025 MS. KALUA-LEWIS: Thank you for the question. Kelsey Kalua-Lewis, Business Manager, Public Works. So this specific project was a federal aid project; 80 percent federal funded, 20 percent County funded. This project started back in May 2023, and it was just basically the rehab of Waikoloa Road. The projects that you see on our upcoming capital improvement projects (CIP) are more so maybe projects that are happening in the Waikoloa Road area not specifically to this big rehab we were doing. So this project was actually project acceptance was in May 2024. So we're looking at closing this particular project out soon. MR. HUSTACE: So that one on the capital budget pis entirely separate then? MS. KALUA-LEWIS: Yes, unrelated to'this. This was just the rehabilitation of the road. So I would say over the past two years they've been doing work on Waikoloa Road. MR. HUSTACE: Okay. I need to talk to the department about it. I seem to have some confusion then. Thank you. Appreciate that. The next one is for Planning. I know Ms. Morrison is here; on the General flan completion and this contract. Is this an ongoing contract and will it be throughout the process as a Council, we're reviewing it as well; is this an available resource to the whole process? (Note: At this time, Planner Bethany Morrison came forward to address the members of the Committee.) MS. MORRISON: Good morning. Bethany Morrison, Planning Department. So yes this contracthas been with us for a few years to support the mapping component of the General Plan weak So we extended that with a little bit of funds to support they work through the Council and additional mapping is needed because we lack the capacity internally to kind of do some of those mapping requests that might come about. MR. HUSTACE: Perfect. So that's definitely a resource we could tap into then if we want to add many more maps over? MS. MORRISON: Yes. Yes. MR. HUSTACE: Okay. Thank you, Ms. Morrison. Appreciate that. Thank you, Chair. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay. Seeing nothing further, motion is on the floor to close file on Communication 24.12. All in favor? Page 8 FC-14 July 8,2025 Vote on Comm. 24.12: The motion to close file on Comm. 24.12 was carried by Filed the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder—7. Noes: None. Absent: Committee Member Kierkiewicz and Kimball —2. Excused: None. Comm. 24.13: REPORT OF CHANGE ORDERS AUTHORIZED- MAY 1 — 15, 2025 From Finance Director Diane Nakagawa, dated June 5,, 2425, transmitting the above report pursuant to Section 2-12.3 of the Hawaii County Code. Motion to Close File: Ms. Galimba moved to close file on Comm. 24.13. Seconded by Mr. Hustace.' CHR. KANEALI`I-KLEINFELDER: Any discussion from the Council? Okay. I do have one. This is for the management for the emergency rental assistance (ERA)program through OHCD (Office of Housing and Community Development) with Neighborhood Place of Puna looking at the 17.3 percent increase in the original contract; And then I have another one for Mass Transit after. (Note: At this time, Housing Administrator Kehaulani Costa came forward,to address the members of the Committee.) MS.'COSTA: Hi. CHR KANEALI`I-KLEI NFELDER: Hi. Please introduce yourself. MS. COSTA: Hi.,Kehau Costa, Housing Administrator. CHR KANEALI`I-KLEINFELDER: Thank you, Administrator. What's the scoop on this one; what's going on here? MS. COSTA: So this is $1.2 million added to the $7.1 million existing contract. e needed to encumber as much of our funds that we could to get out emergency rental assistance to the community. The program is ending September 30t'. This funding is for both direct client services, rental assistance, and then the administrative costs for administering the program and for grant management. CHR KANEALI`I-KLEINFELDER: What is the total; have we reviewed the total amount they're taking as the administrative costs? MS. COSTA: Yes. It's within compliance of the federal regulations. Page 9 FC-14 July 8,2025 CHR. KANEALI`I-KLEINFELDER: And what is that? MS. COSTA: Twenty percent is federal, I believe it's 20 percent. CHR KANEALI`I-KLEINFELDER: Twenty percent of, what is the total? MS. COSTA: Total grant. CHR KANEALI`I-KLEINFELDER: What was itT MS. COSTA: The total grant? CHR KANEALI`I-KLEINFELDER: Yeah. MS. COSTA: Yeah. So this total grant is $8 million; but we had,ERA 1 funds and ERA 2 funds together. So I think we had something like $15 million total in funding. CHR KANEALI`I-KLEINFELDER: So they got allowable, or they did? I guess that's the two major ones? MS. COSTA: Allowable.; CHR KANEALI`I-KLEINFELEiER: D'id they take the full allowance? MS. COSTA. So this isn't completely spent down. So this is what's budgeted for. I do believe we're going to spend down the rental assistance part, which is over,$6 million'in direct assistance in rental assistance on this $7.1 million. I'm not about,the administrative program side operational cost. Yeah. We're spending about$500,000, a little over $500,000 a month in rental assistance. CHR. KANEALI`I-KLEINFELDER: Okay. So this change order is not necessarily; sorry letme change that. This change order increases the funding towards this program, but this could also be that a piece of this then taken administratively by the organization to oversee the funds? MS. COSTA: Yeah. So of the $1.2 million increase, there's about$800,000 that's direct benefit to community and the rest is for staffing and operational cost. So went to Neighborhood Place of Puna, OHCD did, to ask them to increase their capacity to get as much rental assistance out to the community as possible knowing that these funds are ending September. So with that there's, as we know in Section 8 there's an incredible administrative burden on certifying families eligibility for the rental assistance, making sure that they qualify, looking at their income, their leases. So the administrative burden of this particular grant is pretty extensive. It's similar to Section 8; and it's getting it out there to the community. Page 10 FC-14 July 8,2025 CHR. KANEALI`I-KLEINFELDER: Thank you. Understood. I didn't know there was a 20 percent allowance for the federal. MS. COSTA: Yeah. I'll double check on that. CHR KANEALI`I-KLEINFELDER: Yeah. That's pretty hefty. MS. COSTA: And different scripters to what admin is. CHR KANEALI`I-KLEINFELDER: Do you go back and review total grants given to these entities as well as what their total administrative costs is and how many people they've serviced? MS. COSTA: I do look at the budget, yes. CHR KANEALI`I-KLEINFELDER: Take a look at that, the total forthis account and what they put out there. I mean,,understanding it was really necessary during COVID. We're very much post COVID. And understanding there's still a need in the community, not taking away from that. But 20 percent administrative is pretty heavy for any organization in my opinion. If you could just take a look, yeah? Okay; Thank you, Administrator. Council Member Onishi. MR. ONISHL Thank you, Chair. Just a question. How many clients are we reaching out to? IDS: COSTA: f do have just some numbers when we put this request in for the $1.2thillion; looking at May I't;February lst 2024 to February 2025;just in that time, so'this is where you can see we're pushing to get more funds out. Just between May and February, it was $2.5 million in rental assistance to about 370 households. MR. OISHL 370? MS. COSTA: Yeah. MR. ONISHL Okay. Thanks. CHR KANEALI`I-KLEINFELDER: Thank you. Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. Just want to thank you for pushing this out. I know it was, you know, not really expected. And I also thank the community organizations for stepping up to do extra work that we're asking them to do to try to get this money out the door. You know, I was meeting with Officer Josh Willing who's been patrolling Downtown Hilo, and he talked about the fact that there are people there who qualify for vouchers but aren't being able to spend Page 11 FC-14 July 8,2025 them. So I do really appreciate the hard work you guys are doing to try to get this money because we use it or lose it, right? MS. COSTA: Yes. MS. KAGIWADA: Yes. MS. COSTA: Yes. For this particular grant, yes. MS. KAGIWADA: Yeah. Okay. Well thank you for getting the money out there and that extra work. MS. COSTA: Thanks. MS. KAGIWADA: Yeah. I yield; CHR. KANEALI`I-KLEINFELDM Thank you. Seeing no furtherdiscussion, the motion is on the floor to close file cn'Communication 24.13. All in favor? Vote on Comm. 24.13: The motion to close file on Comm. 24.13 was carried by Filed the following void vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwa a, Kimball, Onishi, Villegas, and Chair aneali`i-Kleinfelder—8. Noes: None. Absent: Committee Member Kierkiewicz— 1. Excused: None. CHR KANEALI`I-KLEINFELDER: Resolution 232-25. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 232-25: ACCEPTS THE DONATION OF A ONE-YEAR SUBSCRIPTION FOR MAGNET GRAYKEY FORENSIC ACCESS TOOL FROM OUR RESCUE The donation to the Hawaii Police Department, with an estimated value of $i24,102.50, would be used to advance law enforcement efforts in combatting human trafficking and child exploitation. Reference: Comm. 370 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Motion to Approve: Mr. Inaba moved to recommend adoption of Res. 232-25. Seconded by Ms. Kagiwada. Page 12 FC-14 July 8,2025 CHR. KANEALI`I-KLEINFELDER: Council Members, any discussion? Well, we've got you here you might as well give us a little background. I know there was one testimony today related to this, so if you can, sir? (Note: At this time, Police Major Jeremie Evangelista came forward to address the members of the Committee.) MR. EVANGELISTA: Good afternoon. Major Jeremie Evangelista, Hawaii Police Department. You mentioned there was a question from the testifier; was there something to answer? CHR KANEALI`I-KLEINFELDER: No,just general discussion from the public. MR. EVANGELISTA: General discussion.", this would'be an MOU (Memorandum of Understanding)to accept this donation for this license to conduct digital forensics. So for example, if we were to recover°an,electronic device such as a computer or a cell phone, the license would help us analyze the contents of that device pursuant to a criminal'investigation. CHR KANEALI`I-KLEINFELDER: Okay. 'Thank you. Thank you for your time. Council Members, motion is on the floor to forward Resolution 232-25 to Council with a favorable recommendation. All in favor? Vote on Res. 232-25: The motion to recommend adoption,trf Res. 232-25 was (Approved) carried,by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada,Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder—8. Noes: None. Absent; „Committee Member Kierkiewicz— 1. Excused; None.> Relinquish Chair: At this time, the Chair relinquished the chair to Vice Chair Hustace. ACTING"CHR. HUSTACE: Thank you, Chair. I'll be the Acting Chair for this piece of the agenda as we bring forward Bill 38. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Page 13 FC-14 July 8,2025 Bill 38: AMENDS CHAPTER 19, ARTICLE 13, OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO REAL PROPERTY TAX CREDITS Establishes a Private Road Tax Credit of up to $500 to be applied towards a homeowner's real property tax bill when the homeowner expends at least$100 annually to maintain, repair, or improve a private roadway that is not restricted by a gate and is managed by a road maintenance organization. Reference: Comm. 203 Intr. by: Council Member Kaneali`i-Kleinfelder Postponed: April 15 June 3, and June 17, 2025 (Note: There is a motion by Council Member Kaneali`i-Kleinfelder, seconded by Council Member Galimba, to recommend passage of Bill 38 on first reading.) ACTING CHR. HUSTACE: Thank you, Mr. Clerk. Council Member Kaneali`i- Kleinfelder, if you want to start us off on discussion again today, that'd be awesome. MR. KANEALI`I-KLEINFELDER: Thank you, Chair Hustace. First of all, I'd like to say thank you for your patience. This has been a long ongoing challenging bill in different ways, but we made some good progress. We have today our Director of Finance and our Real Property Tax Administrator and Deputy Administrator joining us as wellas our Deputy Finance Director. I do have some amendments that are forthcoming, but they are not in front of you yet. They are coming though, which really so address a lot of the concerns that I've heard to chat both from Corporation Counsel as well as from some of you folks. I think I'll jut�start by level setting us a little bit and then I'll get to the amendments and hopefully they're here very shortly. Do you have an idea, Mr. Clerk, on how long we're looking at? MR. BROWN: Our staff is working as hard as they can, Mr. Kaneali`i- Kleinfelder; We'll be as expeditious as possible. MR. KANEALI`I-KLEINFELDER: Thank you very much. Okay. Just to level set us, we've been a lot of different directions with this. Purpose of the bill is to provide a property tax credit for residents in the homeowners class only. So that's where local residents, primary homeowners, which I believe we're looking at about 11,000 parcels. Those are numbers that RPT (Real Property Tax)was gracious enough to put together. Only those in private subdivisions whose roads are open to the public and without a gate. So I really slimmed these down with the intent of providing this credit to homeowners, I mean, these are our local residents. These are not your out-of-towners, these aren't second homeowners, these aren't vacation rentals. These are folks who live here, breathe here, and pay for the maintenance of their own roadways, and these are not gated communities. Page 14 FC-14 July 8,2025 So differentiating between the different economic sectors we have in our community as well as those that we're really trying to assist with. Again, these are roads that are open to the public, including the County and the state and any other utility or agency, yet have been privately maintained without assistance by our residents for 50 or 60 years, since statehood, basically. Some of our residents, and this really is the crux of it. Some of our residents can't access services from the County; services that a lot of us take for granted like EMS (Emergency Medical Services), fire, police, mass transit, you name it. They maintain their roadways; they pay taxes; they pay fuel tax; and yet they are not able to access the services that we provide and that is,a social equity piece that we are attempting to address as well. I do argue over thatwe as a County and as a state promote the proliferation of homes across the island in different areas including rural areas, but we do have an obligation then, at least if not moral then ethically and legally to provide services to each and every home we allow to build. So in front of you, you do have one of your first amendments and want to just do a quick mahalo to Lei (Kapuni-Hatch) from my office and Mr. Jacob Perry in LRB (Legislative Research Branch) for helping one get these in front of you. We're going to run through them. I took some hints from some of you folks in the way that you present,amendments. To an efficiency point of view, I'd like to do an all in one, but it is a little bit confusing. So I've broken it apart so we can look at each amendment differently. And please let the record reflect that Council Member Kieriewicz has joined us. Motion to Amend: Mr. Kaneali`i-Kleinfelder moved to amend Bill 38 with the contents of Comm. 203.5. Seconded by Ms. Kierkiewicz. ACTING CHR. HUSTACE: Council Member, on the amendment. MR.,KANEALI`I-KLEINFELDER: Thank you, Mr. Chair. So Comm. 203.5 does two things. In+conversation with Real Property Division as well as some of the members in our community we have changed in Section 19, under(a) Number 4; that the owner will have paid no less than $75 to the road maintenance organization for the maintenance repair or improvement purposes of the roadway. That really just really sets a bar as far as what we're wanting to take and go after With the County and with the HOAs (Homeowners Association) and see how much work we're going to put into it for the return. So the $75 decreases from the original $100, but at one point I was considering $25. So this just ups that bar a little bit to make sure the people are paying in X amount of dollars that's worthwhile to go after a credit for them. The second addresses, and I'm going to call this Diane's amendment right here, that the amount of credit—this also is to Mr. Inaba's point, that the language here; the amount of the credit shall be equal to the lesser of$250 or the amount paid Page 15 FC-14 July 8,2025 under Subsection (a) 4. So this decreases the total ask for the credit from $500 to $250, but it also means that we won't pay any more than $250 in a credit for to those who have paid for road maintenance dues. So I'm looking to decrease the total amount of the credit as well as change the language from the greater to lesser, meaning it won't go higher than $250. And this is to Finance Director Nakagawa's want to decrease the revenue reduction and then as well to make sure this is worthwhile for the departments and for the public to be applying for the credit. So with that said, any questions from the Council on the amendment? ACTING CHR. HUSTACE: Ms. Kagiwada, you're,up first. MS. KAGIWADA: Thank you. And maybe' the author,can answer or maybe we need staff to answer. So in moving from'$100 to $75, hour many more people were included now? MR. KANEALI`I-KLEINFELDER, ,I don't know if the administration will the answer for that. This is more to allow' for some of the organizations that collect less than $100 per year. MS. KAGIWADA: Right. So do you know how many of those there are? MR. KANEALI`I-KLEINFEEDER: Off the top of my head I would say you have two subdivisions that collect voluntary road dues. Some are at$80 per year and some are less than or there is no requirement,,so they get a range of fees coming in. MS: KAGIWADA: Yeah. Can you come up? MR. KANEALI'l LEINFELDER: But this amount would just qualify that they have to atleast have spent$15. MS. KAGIWADA;; Okay. MR. KANEALI`I-KLEINFELDER: And thank you, Mr. Jo, for helping me. MS. KAGIWADA: Thank you for coming up. Thank you. You can introduce yourself. (Note: At this time, Real Property Tax Administrator Lisa Miura and Assistant Administrator Keita Jo came forward to address the members of the Committee.) MR. JO: Assistant Administrator Keita Jo. Page 16 FC-14 July 8,2025 MS. KAGIWADA: Thank you, Assistant Administrator. Do you have any sense of how many more people now this benefit would be available to now that it's gone from $100 to a $75 minimum of investment per year? MR. JO: Yeah, if I were to look at the raw data that we have, it starts to include 416 additional properties. MS. KAGIWADA: Okay. And what is our estimated cost for this program now that it includes an additional 416 people? MR. KANEALI`I-KLEINFELDER: Just to lend art ear if I could, Chair. ACTING CHR. HUSTACE: Just hold off for one second„ Let's let Assistant Administrator kind of do the calculation to answer the question and we'll come back to you. Thank you. MR. JO: Yeah. So the administrator corrected me. The number of properties that are now included is not 416, we're closer to actually 460 properties that are now included by dropping it to $75. And the cost is about$34,000. MS. KAGIWADA: $34,000 per year. MR. JO: That is correct. MS. KAGIWADA: And the total number of participants that it could be would be 460? MR. JO; That's in addition to the original assumption, which was, you know, capping the minimum at$100, right. MS:KAGIWADA: Okay. Okay. So do we have an estimate on how many properties we're talking about total? MR. JO- As amended we don't. We weren't able to do analysis to look at that range between $25 to $250, but we can share the numbers on the amendment that was provided us last time, which basically had it run from anything between $25 to $400. M :KAGIWADA: Okay. And we're talking about$34,000 a year for the whole program? MR. JO: No. That's in addition to. MS. KAGIWADA: That's in addition. And what was it the last time you gave us, what was it? Page 17 FC-14 July 8,2025 MR. JO: Last time it was at about$2.2 million if I recall correctly. MS. KAGIWADA: Okay. Alright. Okay. I do like the credit amount going down. I do have concern about the amount of work this is going to take for what it is being offered. But I can get to that after the amendment. Thank you. ACTING CHR. HUSTACE: Thank you, Ms. Kagiwada. Any thoughts, questions, before I go back to the author? Alright, Mr. Kaneali`i-Kleinfelder, if you have any other additional input on this one. MR. KANEALI`I-KLEINFELDER: Thank you, Chair. And then to the department, understanding this is kind of a rolling ball you're chasing because I'm amending different sections, but these are to address the concerns that were brought up by Real Property Tax, by the Finance Department and also that the community have brought to my attention as well. So I appreciate the latitude. To Mr. Jo, I appreciate you doing on the fly math increasing the parcel amount by 460 parcels that could be applicable, but at the same time reducing the overall expense to capping it at$250 per parcel. So it does create a little bit of a moving target but ultimately we may have gained 460.parcels, but we've capped them at almost half of what we did in the beginning at 500. So I look for everyone's support on the amendment. Thank you. ACTING CHR. HUSTACE: Any other discussion? Okay. Seeing none, roll call vote please, on the amendment. Vote on Motion The m6ti;on to amend Bill 38 with the contents of to Amend: Comm. 203.5 was carried by the following roll call vote: (Approved) Ayes. Committee Members Galimba, Inaba, Kagiwada, Kaneali`i=Kleinfelder, Kierkiewicz, Kimball, Onishi, and Villegas —8. 'Noes: Committee Acting Chair Hustace— 1. Absent: None. Excused: None. ACTING"CHR. HUSTACE: Thank you, Mr. Clerk. Second amendment, r. Kaneali`i-Kleinfelder. Motion to Amend: Mr. Kaneali`i-Kleinfelder moved to amend Bill 38, as amended, with the contents of Comm. 203.6. Seconded by Ms. Villegas. ACTING CHR. HUSTACE: Mr. Kaneali`i-Kleinfelder, the floor is yours. Page 18 FC-14 July 8,2025 MR. KANEALI`I-KLEINFELDER: Beautiful. Thank you, Mr. Chair. Sorry I didn't mean to cut you off. ACTING CHR. HUSTACE: That's okay. MR. KANEALI`I-KLEINFELDER: So starting at the beginning. Article 13; tax credits Section 19-104, this is on the amendment now. The first one was a housekeeping requirement from LRB. That is the Section (c) in 19-104 under the solar water heater tax credit. So that's that, simple housekeeping. And then as you go further into this credit that we would be creating if it did pass, under subsection (c), this speaks to a number of things. One,,in the very beginning of our hearings the Real Property Division expressed thatthis would be incredibly negative for their staffing as far as how much workload we would be creating for the department and then as well there Was a'concern for legal issue with the bill as amended by DCC (Deputy Corporation Counsel) (Keyra) Wong At that last hearing, which preempted the postponement to today. The legal concern was that people cannot be opted into a program accept,there was no basis for that concern after the review. So to make everybody happy we changed the--and again, I appreciate your patience on this. What'I've done here, and this is what I've learned actually going back to folks like Valerie Poindexter is that sometimes instead of trying to really dig into the details and require what we do through language in the bill it's actually better to allow the discretion of the director or the administrator. So in subsection,(c), this amendmentihat you're seeing actually allows the director the discretion in the way that the documents are supplied to the department by the HOAs as well as what documentation is required. The Finance Department is in their admin rule making process'currently and so if this were to pass, although it would be applicable in,2026, which is a year away, there is time for the director and the administrator to work collaboratively to find admin rules that would help this be seated in our code language as well as how this would be rolled out with our HOAs and with our subdivisions. Another big plus here I think that people may not realize and I've seen this again and again', and maybe some of the other Council Members as well is a lot of the HOAs thatwe have in our community are challenged with bookkeeping and providing information and as well as Ms. (Eileen) O'Hara in her testimony, how the subdivisions would address someone who is not paying their road dues voluntary or mandatory and how the community association can handle a parcel owner in a manner of a lien or anything else. So this is more of a broad amendment that addressed potential legal concerns that were addressed by Corporation Counsel that were found to not exist actually. And I do appreciate Ms. Wong and her study into this as well as take care of the issues that were brought up by the Real Property Tax Division in the amount of work load this would create. There wouldn't be an application. This is documentation provided by the HOAs to the Real Property Tax Division that would lessen their work load. Page 19 FC-14 July 8,2025 I don't know. And that is the content of this amendment. So I look forward to any questions. This is a multi-piece, and I appreciate your patience in walking through it and understanding what it does. I'm happy to answer any questions if there are any. ACTING CHR. HUSTACE: Thank you, Council Member. Any additional thoughts, questions, for the maker? Ms. Kierkiewicz, you're up first. MS. KIERKIEWICZ: Thank you, Chair. Hi, Lisa, eita. Great to see you. Looking at the amendment before us in Comm. 203,.6, Page 2, so with letter(c), it sounds like we are putting the ball in the court of community to report to Real Property Tax. Does that lessen the work load on your end to administer this program? MS. MIURA: Real Property Tax Administrator Lisa Miura. In'this case it is going to the community as far asp the road maintenance organization cor the association to provide us the details.,Because we're not having to take in a maximum of about 11,000 applications', assuming everybody in the homeowner on these applied, which Keita and I have gene back and forth. I don't think everybody would apply but they're more encouraged if they live here to get a tax credit if they're paying their road maintenance dues, right. That was going to be a huge burden that we said we absolutely just couldn't take in and the reality of getting that much more staff wasn'ttealistically ever going to happen because there's other departments with greater needs. But going this way does lessen the work load on'the staff. It shifts some of it to a different group, but it wouldn't be on our clerical staff that is short handed right now. I guess I don't want to say that there's no work. I mean, there's still going to be some work, right, but it's not thesame as taking in a bunch of applications. MS. KIERKIEWICZ: Yeah,you know, I'm really struggling with this because onthe one hand, the County allowed for the creation of these substandard subdivisions, right? So we have folks that are having to live on dirt roads; we have first responders,police, responding in these really difficult conditions to provide service. And these roads in their state really impact quality of life. And I want to be helpful, and I think this bill is a vehicle to be helpful. I also think about the bill that we had adopted as a Council that Council Member Kaneali`i- Kleinfelder put forward where there would be a mechanism for folks to apply for improvements to their roads. So wondering where the status is on that, right? And then I also hear you very honestly and diplomatically share the burden that this kind of program would have on your team and that weighs on me pretty significantly. MS. MIURA: So I will say this definitely takes away a lot of the manual labor that needs to be done because we'd be getting something hopefully in a shareable format from the associations. While I can't speak to the effect of what happened on the budgetary side with the public applying for some of the money that went to Page 20 FC-14 July 8,2025 the private roads, I know Finance Director Nakagawa or Deputy Kekai can speak to that. It does change how this is done. It's a tax credit rather than an annual application so that part does change. Keita brought to my attention since I was not here at the last meeting that there may be some changes needed within the software only because in my mind I thought, well we already have a solar water heater credit so it's similar. It's real easy. But that's a standard amount whereas this amount may fluctuate depending on what that amount is. I guess the only thing I'm a little surprised about was to see the $75, hearing that there was somebody who did a testimony earlier that does $50, but our calculations just so the Council Members know ranged up to the $400 or excuse me, all the ones that we know. But our estimate was based up to the $400 credit. So I think that's why you saw us playing with our calculators and not listening to everything that was being discussed so I apologize if it didn't answer your question. MS. KIERKIEWICZ: I think what you're just`trying to describe to us is implementation of this program is going,to be It sounds like it's going to be complex and there's going to be a lot of fluctuation in terms of what folks get and we are really going to be relying on road maintenance organizations to do their part and report to you so,that you can do your jab in getting folks their credits. Director, is there something that' ou wanted to share? (Note: At this time, Finance Director Diane Nakagawa came forward to address the members of the Committee.) l S: NAKAGAWA: Thank you, Council Member Kierkiewicz. Diane Nakagawa, Finance. I wanted to follow up on your question about our other efforts'within the Public Works Department. I did ask them to come back and give an update. In the 20�6 budget we did put$250,000 to this program and I know that they,are working on the application. They probably have a better date than I do at the moment but that is something that is looking to be rolled out soon and they can answer more questions on that. So I just wanted to point out the availability of those funding in that department that you had talked about. And just overall,you know, I appreciate the continued dialogue that we've had on this particular issue. We do have concerns still with staffing. There are costs unknown with the software. We're still dealing with other changes; we're adding staff now to deal with the other changes. So we need some time to get caught up and deal with these things in an efficient manner and so we just appreciate you hearing our challenges and our concerns as well. MS. KIERKIEWICZ: Thank you for that. So are there other ways of providing value to our taxpayers, other programs, methodologies that we could consider that aren't as involved? This is one approach, right? And I just wonder if other concepts have been due consideration. Page 21 FC-14 July 8,2025 MS. MIURA: Are you speaking in regard to private roads or just in general? MS. KIERKIEWICZ: Yeah,private roads. Because we're trying to solve for a very particular problem here, right? Folks have substandard roads and one way that the County can provide some relief because we have not provided them, right, with an adequate road is to provide relief on real property tax. So just wonder if not this vehicle, are there other things that we could consider that aren't as strenuous on your team? Just for the conversation. MS. MIURA: I think not in particular to private roads, it will be what is already in Council's wheelhouse, which is to lower the tax rate for homeowner program or to increase the exemption. However, it'sgoing to affect everybody in that same homeowner tax class rather than just a particular group',which would be the private roads. And then taking a stepback,because I mean my,role in here is for real property, not the budget. So that's why the director has to speak on the budget. But if you're looking at how the private roads,people on private roads can get more services then that's a little bit broader topic for the administration as far as putting more money into that sector. I think,ths was a way, if I'm not mistaken from a policy standpoint;to get not only the individuals to pay the road maintenance fees but for the road maintenance associations to do more themselves without relying on Public Works. Because when I think about it as a taxpayer, I'm like, okay, so you put money,in Public Works but that's more things on Public Works to do, and you'have all of these roads and how far is that going to get? Whereas an association that could collect more money could do more with it than the County could. I feel like sometimes people hear the County is involved and all of a sudden it costs more money to do anything. But that's just my personal feeling. MS:KIERKIEWICZ: Thank you for that. I think it would be interesting to perhaps,explore that idea that you just put forward. Are you recommending a class? 'No, No. MS. MIURA: No. No. I'm not recommending a tax class. MS. KIERKIEWICZ: I'm giving Mr. Kaneali`i-Kleinfelder more ideas for more conversations. NfS. MIURA: No. I think there's the homeowner program. I mean the only thing we haven't discussed, which my staff would absolutely just die and would rather see a tax credit would be an abatement and that focuses on income. But that opens a whole ball because not everybody files tax returns and it would require tax returns. MS. KIERKIEWICZ: Got it. Page 22 FC-14 July 8,2025 MS. MIURA: And out of all the counties, I have nobody really to go to for this policy because this isn't a policy within Hawaii or that I've been able to find other communities are faced with, but we are unique. MS. KIERKIEWICZ: That we are. MS. MIURA: So I think this is a policy decision. MS. KIERKIEWICZ: Yeah. Thank you. I appreciate you being here and adding to the discussion. Chair, I yield. ACTING CHR. HUSTACE: Thank you, Council Member. Let's move over to Ms. Kimball then please. MS. KIMBALL: Yeah, thank you. Thank you, Council Member, for the amendments based on our discussions. I had`a question for you and then a question for the department. Have you,had any discussions with the road maintenance organizations about their ability,either just practically or legally to provide us with this information? I'm just coi ncerned about their ability if they have any like privacy protections or things like that within their HOA rules. Has that been explored? MR. KANEALI`I-KLEINI'ELDER: As far as their bylaws, I haven't directly discussed bylaws with them and what they can and cannot share. But they do track this information; they are accountable to their entire residency to every parcel owner, and they have to show their accounting. And so this actually,just thatpresents a challenge to the community itself when you have an HOA taking in hundreds of thousands of dollars;where it's being spent; who is contracted to do what- And so yes,I mean, yes and no. I have had this discussion; they like the idea; they can provide the information. Bylaws preventing privacy information, thatis a valid ppint, but I haven't gotten there with some of the organizations. MS. KIMBALL: Yeah. I'd like to maybe before the next hearing on this where ever it ends up, have some of those maintenance organizations come and kind of speak to their ability to provide this as well as, and I'll just signal Corporation Counsel to kind of think about, or if you could share not today, but another time like because there's the potential for a financial impact on an individual if the ROA didn't provide the information that they provide, do they now have some legal liability with respect to the individuals that they don't have now that they're not willing take on. Does that make sense? Like if I don't get my tax credit because my HOA didn't do their paperwork right they would now have that liability. And so I wonder about that, and I'd like to get Corporation Counsel's opinion, and I'd like to hear from some of the HOAs if they're comfortable taking on that kuleana. Page 23 FC-14 July 8,2025 My second question was mechanically for you guys I'm going to presume that the HOAs or road maintenance organizations wouldn't necessarily know who's in a homeowner class and who's not. So based on this you guys would be getting the name of the owner, the TMK(Tax Map Key), the amount paid, anything else. Mechanically, are you going to be able to just like apply that spreadsheet to the RPT database and it would automatically sort out who's a homeowner and who's not? Just kind of speaking to the idea of like more work for the department, is that one of the things that—are you going to still have to go through them individually to say, okay yes, no, yes, no, in terms of homeowners class? MR. JO: So we won't have to go through them' individually. We would cross reference that list against our list of all properties receiving a homeowners exemption and it'd be a yes or no match kind'of scenario: I think the challenge would be more of the credit is up to, as long as the road maintenance fee was less than $250, it would be up to that$250 threshold, which might be different for different TMKs. And so programming that into the system would'be more of a challenge for us, not unsurmountable though. MS. KIMBALL: Alright, thank you for that; And I appreciate the attempts to kind of alleviate some of the work here on the department. I'll be supporting this amendment because I think it pushes us more irithe right direction, but I still have like I said some concerns. I would love to see a spreadsheet, and maybe you guys have it down there, but if you could share it as a communication associated, if we know the different private subdivisions'and.their current HOA rates. The other thing that L wonder about is if some associations, the fee encompasses not only roadwork but other things like how that might be parsed apart for this because I would want it to be the funds that were specifically dedicated towards roadwork and not towards other things. So if we could have some clarification about each subdivision, what the fees are, and specifically what portion of those fees go specifically towards road maintenance, I think that would help in making a decision on moving this forward. Appreciate it. MS. MIURA: Carl I clarify who you're asking that from? Is it from the maker of the bill or us? MS. KIMBALL: I think it should be from the maker, right? MS. MIURA: I just want to be clear. NfS. KIMBALL: Yes. No. From the maker please. That would be helpful to me. MR. KANEALI`I-KLEINFELDER: Okay. ACTING CHR. HUSTACE: Thank you, Council Member. Council Member Kagiwada. Page 24 FC-14 July 8,2025 MS. KAGIWADA: Thank you. This is just a kind of technical question I had. So we just amended with the contents of Comm. 203.5, but this amendment actually includes the old language of the original going up to $100 as opposed to the $75. So are we amending back if we pass this to the $100? MR. KANEALI`I-KLEINFELDER: Can I? ACTING CHR. HUSTACE: Please. Council Member. MR. KANEALI`I-KLEINFELDER: Thank you, I did discuss that with LRB. These can work together as two separate amendments it would bring us to the same place was my understanding. If not then that can be worked out and I do apologize. But my understanding was that would work aril that they could work together. MR. BROWN: If you don't mindy,Chair, I'm going to have Jacob Perry come and kind of discuss because they're two separate amendments and there is language in this one which is conflicting,frou an amendment you guys just made which changed some of the looks like a dollar threshold there. If you guys don't mind I'm going to have Jacob come and maybe talk us through that a little bit just to make sure it's clean and you guys understand what we're exactly voting on. ACTING CHR. HUSTACE: Thank you, Mr. Clerk. MR. BROWN. He's coming right now. 1 S: KAGIWADA: Okay. I can fill time. ACTING CHR. HUSTACE: Okay. Please, Council Member. MS:KAGIWADA: Thank you. I'm sorry to bring you guys back up. So Administrator Miura, you mentioned that having the differing rates causes more work, I think, for your staff. If you just had a flat rate of say $75 that people got, would that lessen your work load? MS. MICTRA: Yes. According to Keita. I'm only looking at him because I said DHHL (Department of Hawaiian Home Lands) was no problem and let me tell you, after two days they've corrected me. My staff has politely corrected me this morning to not say it's not a problem. It would be easier if it was a flat rate. Although I understand where the maker of the bill is coming from. MS. KAGIWADA: Yeah. I mean my thought is they're already doing it up to $250 without getting anything back. If they got the $75 credit, that's more than they're getting now. They wouldn't necessarily reduce their amount, I wouldn't think, since they weren't getting anything before. And it could still encourage some of the people who haven't yet been paying to jump in and pay. So I would Page 25 FC-14 July 8,2025 put it to the maker to consider. It would also obviously be much less burden on our budget if we were paying at the $75 rate. So I would encourage you to look at that. MR. KANEALI`I-KLEINFELDER: Okay. ACTING CHR. HUSTACE: Thank you, Council Member. We'll have Mr. Perry come answer your previous question if that's okay? Council Member, did you need to restate it or Mr. Perry, are you clear on the question? (Note: At this time, Legislative Specialist Jacob Perry came forward to address the members of the Committee.) MR. PERRY: Jacob Perry, Legislative Specialist, Office of the County Clerk. If you could please restate your question? MS. KAGIWADA: Yeah. We just:amended this bill with the contents of Comm. 203.5 and now we have Comm::203.E in front of us, which includes the original language I believe, not the amended ones. MR. PERRY: So because these two amendments are nonconflicting even though they kind of like overlap,but"the;provisions, the wording is not conflicting. They can be layered on top of each other. If both amendments were to pass in the second draft the language wouldbe integrated. MS. KAGIWADA: Okay. So there isn't a problem? MR. PERRY: No. MS. KAGIWADA: Even°though it's the original wording here. MR.'PERRY: And it's happened a couple times in the past. Just kind of depends sometimes how the Council Member wants to split up their amendment as long as the wording is not conflicting; the amendments are not conflicting; they can be layered. MS. KAGIWADA: Alright. Thank you. Thanks for that. Appreciate it. ACTING CHR. HUSTACE: Thank you, Mr. Perry. MS. KAGIWADA: I don't have anything further at this time on this amendment. Thank you. ACTING CHR. HUSTACE: Thank you, Council Member. Any other discussion? Back to you, Mr. Kaneali`i-Kleinfelder. Page 26 FC-14 July 8,2025 MR. KANEALI`I-KLEINFELDER: Thank you. I don't want to take too much time because we do have a 1:00 p.m. Committee coming in five minutes. Just to Ms. Miura, I mean, this really did speak to your department's having to address 11,000 applications that we kind of settled in on,just roughly, versus having the information supplied to you which will in turn reinforce that HOAs need to do a really good job in bookkeeping and then provide that information to us and in a number of worksheets or documentation as you may require or Diane may require. That information can be provided to us, and we can go through it and comb out what we need, which really does address the concerns of the department from what I heard in the beginning. Is that right? MS. MIURA: Yes. MR. KANEALI`I-KLEINFELDER: Okay."So to the Council, we do have a 1:00 p.m. Committee starting. I believe what I would like to do today is to hopefully get your support on the amendment, which gets us going in'the right direction in two or three different ways;, And,then work on the bill from there at your folks pleasure. Chair, I yield. ACTING CHR. HUSTACE: Thank you, Council Member. I do have one question for Administrator M;iura, if you don't mind? Thank you. Sorry. It's the date of information to received by Finance potentially, would you have to establish some sort of standardized form that they would submit or are you going to be receiving all sorts of wild, crazy paper receipts from different HOAs? They have different structures, different bookkeepers, so I'm just curious from an outset, what are you thinking on, if this moves forward, approved what not, would you have to establish some sort of standardized sort of portal that they kind of submit? MS. MIURA: ,If we get to the point this gets passed, in the rules we would probably require an excel spreadsheet or some sort that we can not have to reenter all that°information again, that we can hit it against our internal database easily. ACTINGCHR. HUSTACE: Okay. Thank you for that. Appreciate that. Any further discussion? Okay. Mr. Clerk, can we have a roll call please on the amendment? Page 27 FC-14 July 8,2025 Vote on Motion The motion to amend Bill 38, as amended to Draft 2, with to Amend: the contents of Comm. 203.6 was carried by the following (Approved) roll call vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, and Villegas —8. Noes: Committee Acting Chair Hustace— 1: Absent: None. Excused: None. ACTING CHR. HUSTACE: Okay. Back to Bill 38, as amended, with the past communications. Any further discussion? Council Member Kaneali`i- Kleinfelder, please. Your light is on. MR. KANEALI`I-KLEINFELDER: Okay. I just want to say thank you for your patience and walking through all this with me. To the departments, thank you for your time. LRB, everybody, thank you;-We have our committee at 1:00 p.m. starting and we have some testimony here today for that. So my suggestion would be to postpones and I'll continue to do some of the homework that was given to me today and then,we have time to getready for our next committee if that's meeting with the needs of the Council, I would greatly appreciate it. But I yield, Chair. ACTING CHR. HUSTACE: Thank you, Mr.'Kaneali`i-Kleinfelder. Any other discussion? Do we have a motion, Mr. Kaneali`i-Kleinfelder? MR. KANEALI`I-KLEINFELDER: Chair, motion to postpone Bill 38 to the July 22'd committee. Thank you, Ms. Kimball. ACTING CHIC. HUSTACE: We have a motion to postpone Bill 38, as amended, to July22nd committee meeting. Sorry. Administrator? MS. MAMA:A: I apologize. Keita will not be here, but I have to be in appeal hearings that day. So if the Council's okay meeting or Committee without Real Property Tax, you could. Otherwise could we postpone to August? MR. KANEALI`I-KLEINFELDER: Yeah. That's fine. Okay, Mr. Clerk, if I could restate the motion? ACTING CHR. HUSTACE: Withdraw and restate, whatever you have to do. MR. BROWN: If there wasn't technically a second that was noticed, there was no official motion. So if you want to just amend your motion right now, we'll get a second, should there be a second, and then we can vote on that. Page 28 FC-14 July 8,2025 MR. KANEALI`I-KLEINFELDER: Got you. Okay. Withdrawing the motion to postpone to July 22nd; Mr. Chair, if I may? ACTING CHR. HUSTACE: Please. Vote on Motion Mr. Kaneali`i-Kleinfelder moved to postpone Bill 38, as to Postpone: amended to Draft 2, to August 5, 2025. Seconded by (Approved) Mr. Inaba and carried by the following voice vote: Ayes: Committee Members Galimba,Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, }nishi, Villegas, and Chair Kaneali`i-Kleinfelder—9. Noes: None. Absent: None. Excused: None. ACTING CHR. HUSTACE: Without objection',that is our last item on the agenda. ADJOURN- There being no further business on our agenda'today, Acting Chair Hustace MENT: adjourned the meeting at :00 p.m. Thank you very much. Approved: Mr. Matt Kaneali`i-Kleinfelder, Chair (Date) Finance Committee MK/tk Page 29