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HomeMy WebLinkAboutMIN FC 2025/08/19 (2024-2026)Committee on Finance 17th Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawaii August 19, 2025 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 10:00 a.m., in the Council Chambers, Kailua-Kona, 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 Mr. Dennis "Fresh" Onishi, Member Ms. Rebecca Villegas, Member Absent & Excused: Ms. Ashley L. Kierkiewicz, Member Ms. Heather L. Kimball, Member STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: (There were none.) COMMUNI- The Chair directed the Committee to proceed to the next order of Business, CATIONS: Communications. Comm. 426: TABULAR SUMMARY OF NET FUNDED DEBT AS OF JUNE 30, 2025 From Finance Director Diane Nakagawa, dated July 22, 2025, transmitting the above report pursuant to Chapter 47C of the Hawaii Revised Statutes. Motion to Close File: Mr. Inaba moved to close file on Comm. 426. Seconded by Mr. Hustace. CHR. KANEALI`I-KLEINFELDER: Ms. Nakagawa, Director, could you give us an overview of what is in front of us then we can go to questions from the Council? Thank you for being here this morning. Please introduce yourselves. (Note: At this time, Finance Director Diane Nakagawa and Treasurer Chris Nakano came forward to address the members of the Committee.) FC-17 August 19, 2025 MS. NAKAGAWA: Good morning, Council Members. Diane Nakagawa, Finance Department. MR. NAKANO: Chris Nakano, Treasurer. MS. NAKAGAWA: Thank you for having us here this morning. I can do a quick summary of our statement of funded debt. We were just here nearly two months ago, and the reason was we are required come forward with our summary of funded debt 30 days after the close of a bond issuance. So the timing this year just kind of were close together, it overlapped between the issuance of our last bond and then the closing of our fiscal year. So a lot of the numbers really didn't change very much but I'm happy to go through that. Most of the changes that you'll see today is from what's maturing in the coming year. So Section 1 is just an overall, our total principle amount of County debt; so our GO (General Obligation) bonds, our SRF (State Revolving Fund) loans, and our revenue bonds. The revenue bonds is our CFD (Community Facilities District), and we can go through that in a little bit. Two is the exclusion from the total. So the GO bonds that are maturing as well as our SRF funds as well. Our revenue bonds, the GO bonds that are reimbursable by the County and then our IDs (Improvement District). So these two are subtracted from our total in one. Schedule A on the next page goes through our General Obligation Bonds and the issuance. Council Member Galimba, we did add at your request the date of issuance here as well and the original —I'm sorry, not the date of issuance but the original value. So thank you for that. I think that is helpful to see the original value and what's the principle outstanding. And then Schedule B is our SRF loans. Schedule C is our CFD; (Schedule) D is those that are reimbursable by Water Supply, and then Schedule E is our improvement districts. So as I mentioned, not much has changed from the last time we were here just because of the timing of the end of the fiscal year and the issuance of the last bond, but happy to answer any questions. CHR. KANEALI`I-KLEINFELDER: Okay. Thank you very much, Director. To the Council? Okay. Thank you very much for the overview, Director, and for the timeliness of the report. Seeing no further discussion. Mr. Nakano, thank you. Seeing no further discussion, motion is on the floor to close file on Communication 426. All in favor? Page 2 FC-17 Vote on Comm. 426 Filed ORDER OF RESOLUTIONS: August 19, 2025 The motion to close file on Comm. 426 was carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 7. Noes: None. Absent: Committee Members Kierkiewicz and Kimball — 2. Excused: None. CHR. KANEALI`I-KLEINFELDER: Resolution 266, please. The Chair directed the Committee to proceed to the next order of business, Order of Resolutions. Res. 266-25: AUTHORIZES INDEMNIFICATION OF A FORMER EMPLOYEE OF THE COUNTY WHO IS NAMED AS AN INDIVIDUAL DEFENDANT IN THE LAWSUIT KNOWN AS DAVID J. FREEDMAN V. COUNTY OF HAWAI`I, ET AL. AGAINST ALL DAMAGES ASSESSED THEREIN AND MAKING OTHER FINDINGS IN ACCORDANCE WITH SECTION 2-188 OF THE HAWAI`I COUNTY CODE Provides indemnification for Douglass S. Adams, former Director of the Department of Research and Development, regarding a civil action alleging claims against the County and Mr. Adams for employment discrimination, emotional distress, and negligent supervision. Reference: Comm.428 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Motion to Approve: Mr. Onishi moved to recommend adoption of Res. 266-25. Seconded by Ms. Villegas. CHR. KANEALI`I-KLEINFELDER: We have our Corporation Counsel here in the Chambers in Kona if there are any questions. Mr. Onishi, go ahead. MR. ONISHI: Yeah. Thank you, Chair. Corporation Counsel, you know, my thing is I don't know how much information we should be talking about this, right. And I know the parties and so it's kind of interesting, or there's a fine line. And so any suggestions? (Note: At this time, Deputy Corporation Counsel Mark Disher came forward to address the members of the Committee.) MR. DISHER: Deputy Corporation Counsel Mark Disher. Yes, if you know the parties on a personal or professional level other than as a County Council Page 3 FC-17 August 19, 2025 Member, Corporation Counsel isn't here but she'd probably say you may properly recuse yourself from any decisions regarding this. MR. ONISHI: I mean, my relationship is basically from when I was on the Council, so I dealt with him on certain issues that's why. And so I know the parry and so, you know, it's kind of interesting. So I don't know like how much we can discuss. MR. DISHER: The case itself I'd rather not go into any details except for, you know, discussing what's in the complaint, which was provided and part of the record. As this is a public forum I'd be happy to go into detail if we were in executive session. But yeah, I'm not comfortable giving my perspective of this case in a public record. MR. ONISHI: Okay. So I'll hold up for now and see if the other Council Members have any discussions. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Villegas. MS. VILLEGAS: Yeah. I concur, Council Member Onishi. In just looking through this, immediately I think this is kind of an executive session kind of material. But it's obviously not. This is public record. This is out there for everybody to see. This is pages and pages of details and accusations, which seems odd to me. I guess my question becomes, what are we voting on here? I mean, what's being asked of us as far as acknowledging this, you know, what are we doing? MR. DISHER: As Douglass Adams was Director of R&D (Research and Development) and the time and would've been responsible for any employment decisions. This case is involving employment decisions so it's within the scope of his employment as director and as such we should indemnify our employees for actions like this. What the information was provided is the complaint made by the plaintiffs. That is something that they need to be able to prove in a trial. Now let's just say I don't believe they can and just for the Council Members information a trial's going to be set late January. There is a hearing for motion for summary judgement to be heard next month, September 241". So hopefully, depending on the ruling on that, this may go nowhere. But that's where we're at. MS. VILLEGAS: So essentially today we would be voting on, in first reading in committees on whether or not to indemnify Doug Adams, which for everybody watching out there means that he's covered by the County. MR. DISHER: Pursuant to the County Code, and as we should, cover our employees that are working within the scope of their employment. Yes. Page 4 FC-17 August 19, 2025 MS. VILLEGAS: Yeah, okay. Okay. I just want to be clear on what we're making a decision on but also state for the record. This is a wild one. This is, I mean, this is an interesting book. I think it's unfortunate for both parties out of sensitivity here. Obviously the plaintiff really believes that he was harmed and discriminated against, which based on the diversity of his lifestyle is just a horrible thing for anybody to feel that way. And then I also feel for prior Director Adams because this is a laundry list of accusations and claims. So I hope that this can get resolved in the best, smoothest way possible with the least amount of damage for everyone. I yield. CHR. KANEALI`I-KLEINFELDER: Thank you. Good morning, Ms. Schoen. Sorry, I'm trying to see who's there. Ms. Kagiwada's reminding I should've wore my glasses. (Note: At this time, Corporation Counsel Renee Schoen came forward to address the members of the Committee) MS. SCHOEN: Good morning. Renee Schoen. CHR. KANEALI`I-KLEINFELDER: Good morning, Ms. Schoen. MS. SCHOEN: I'm in Hilo just standing by to see if you all had any questions. But, you know, it is a request pursuant to our County Code Section 2-188, and so this is why we're appearing before you. I think in the past our office may have not provided this body with a copy of the complaint but moving forward we though it best to provide this body with as much information as possible. But I do want to, you know, state on the record that this is merely the compliant. This is allegations made by the plaintiff and, you know, our office is ready, willing, and able to defend the County and its employees. So you only have the compliant in front of you so you can see the allegations and those allegations are public. And as Deputy Corporation Counsel Disher said, we are willing to go into executive session if you want to get into more detail. But at this stage it's merely a request to defend the former director of Research and Development. CHR. KANEALI`I-KLEINFELDER: Thank you very much, Renee. Is there any further discussion? Okay. Hearing and seeing none, motion is on the floor to approve and forward Resolution 266-25 to Council with a favorable recommendation. All in favor? Page 5 FC-17 Vote on Res. 266-25 (Approved) ADJOURN- MENT: Approved: Mr. Matt (Ka Finance Cbn MK/tk August 19, 2025 The motion to recommend adoption of Res. 266-25 was carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 7. Noes: None. Absent: Committee Members Kierkiewicz and Kimball — 2. Excused: None. There being no further business on our agenda today, Acting Chair Hustace adjourned the meeting at 10:13 a.m. Thank you very much. i `i-Kleinfelder, ate Page 6