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HomeMy WebLinkAboutMIN FC 2025/12/16 (2024-2026)Committee on Finance 2511 Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawaii December 16, 2025 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 11:00 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 Ms. Heather L. Kimball, Member Mr. Dennis "Fresh" Onishi, Member Ms. Rebecca Villegas, Member Absent & Excused: Ms. Ashley L. Kierkiewicz, Member STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: (There were none.) COMMUNI- The Chair directed the Committee to proceed to the next order of Business, CATIONS: Communications. Comm. 23.24: REPORT OF FUND TRANSFERS AUTHORIZED: OCTOBER 16 — 31, 2025 From Controller Jon Arbles, dated November 17, 2025. Vote on Comm. 23.24: Mr. Inaba moved to close file on Comm. 23.24. Seconded Filed by Mr. Hustace and carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kimball, Onishi, Villegas, and Chair Kdneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Kierkiewicz — I. Excused: None. FC-25 December 16, 2025 Comm. 23.25: REPORT OF FUND TRANSFERS AUTHORIZED: NOVEMBER 1 — 15, 2025 From Controller Jon Arbles, dated November 25, 2025. Motion to Approve: Mr. Inaba moved to close file on Comm. 23.25. Seconded by Mr. Hustace. CHR. KANEALI`I-KLEINFELDER: Council Members, discussion? Maybe for Housing or Ms. (Diane) Nakagawa. This question is on the home program income repayment and then the Habitat for Humanity affordable homes for Puna. These are under the general fund, both with DPW (Department of Public Works) and Housing. Just a brief explanation of what the two are and if they're related. do see Mr. (Royce) Shiroma joining us. Mr. Shiroma, do you have information on this? (Note: At this time, Housing and Community Development Specialist Royce Shiroma came forward to address the members of the Committee.) MR. SHIROMA: Yeah. I'm looking at Page 1 of the report, and it seems that Habitat should be for the housing side. I see it in the middle like listed between transfer Number 12 and 13, but it should be for the first amount, which is the $450,000 for the home projects. A little bit background, the Habitat for Humanity affordable homes for Puna in one of the 2023 home program total funding that we took back the money. So these along with the other funding, which includes the $451,221, the $43,011, $41,200, and the $400, are all leftover monies that we are combining into one project that we are funding for the `Ouli Ekahi Wastewater Plant replacement. CHR. KANEALI`I-KLEINFELDER: Okay. Thank you very much. I appreciate that. And for the record, could you introduce yourself, please? MR. SHIROMA: I'm sorry. Royce Shiroma, Office of Housing. CHR. KANEALI`I-KLEINFELDER: Thank you very much. Okay. Any other Council Members for discussion on the communication? Hearing and seeing none. Motion is on the floor to close file on Communication 23.25. All in favor? Vote on Comm. 23.25: The motion to close file on Comm. 23.25 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 Kierkiewicz —1. Excused: None. Page 2 FC-25 December 16, 2025 Comm. 24.23: REPORT OF CHANGE ORDERS AUTHORIZED: OCTOBER 1 —15, 2025 From Finance Director Diane Nakagawa, dated November 21, 2025, transmitting the above report pursuant to Section 2-12.3 of the Hawaii County Code. Motion to Approve: Mr. Inaba moved to close file on Comm. 24.23. Seconded by Mr. Hustace. CHR. KANEALI°I-KLEINFELDER: Discussion on the motion? Council Member Hustace. MR. HUSTACE: Thank you, Chair. Is there someone from DPW in our Hilo Chambers there? (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. Kelsey Kalua-Lewis from Public Works. MR. HUSTACE: Hello, Ms. Kalua-Lewis. Just a question on the contract 9781 is appearing three times on here for different amounts. This is for professional consulting service for public safety building facility improvements. If you could tell us what that is, a little more details? And then we're seeing supplemental agreements, one at $1.8 million, one at $30,000, $136,000, if you could just kind of walk us through those different agreements there? MS. KALUA-LEWIS: Yes, of course. So this contract originally started as a flood mitigation project for the public safety building. We did a change order number one, to include the relocation of our motor vehicle licensing that currently stationed at the public safety building. So basically all of these change orders cover those two projects combined. So the public safety building and also the relocation of that finance section to the Kaiko`o Building in Hilo. So change order number three, which is the first one that had the $1.8 million increase, that was actually to add on for the hardening of the public safety building. Change order number four, there needed to be additional work done to the Kaiko`o Building. And then change order number five would just be for the painting of the public safety building. So even though it's one consulting contract, it kind of jumps between relocating VRL (Vehicle Registration and Licensing) out of the public safety building. MR. HUSTACE: So it was an entire change order for $2 million, would this not have been a completely separate contract, kind of that scale? MS. KALUA-LEWIS: I would have to check with the project engineer on why they close to just expand on the current flood mitigation and original Kaiko`o relocation. Page 3 FC-25 December 16, 2025 MR. HUSTACE: Because it seems kind of beyond the scope of the original contract then, from my understanding if I'm not mistaken here. MS. KALUA-LEWIS: Yes. So with the flood mitigation, my understanding is that the flood mitigation, when they kind of went in to do the work they also discovered needing to do additional work at the public safety building. But I will double check with the project manager and see why that decision was made. MR. HUSTACE: I understand that. It just seems that this is entirely beyond the scope of the original contract, beyond flood mitigation. So that's just the question I'm bringing up here to Council. Thank you. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Kimball. MS. KIMBALL: Just my usual disclosure. One of the change orders is for Fleming and Associates, which is my husband's architectural firm that I have no actual interest in. But since this is a report that we're receiving, there's no conflict. Thank you. CHR KANEALI`I-KLEINFELDER: Thank you. Final question for Public Works for myself. Where is the public safety building? MS. KALUA-LEWIS: That's the police station located on Kapiolani Street. CHR. KANEALI`I-KLEINFELDER: Okay. And then is it normal for there to be multiple change orders for the same contract? MS. KALUA-LEWIS: Depending on the contract. I mean, we're seen projects that require different supplemental agreements. For this one, I think when it was initially discussed it was because we had to move finance due to the work that was going to happen at the public safety building. I think that was the original extension of the Kaiko`o relocation. And then I would have to check with the project engineers on why specifically those decisions were made from three on. CHR. KANEALI°I-KLEINFELDER: Okay. The job number, the contract number, the contract date, are all exactly the same. But as Mr. Hustace pointed out, I think four different change orders cumulatively for about $2 million. Normally, I mean I would expect it to be as one change order. But the four different change orders is interesting. MS. KALUA-LEWIS: Yeah. And I just want to add, I think, so specifically for the flight mitigation and the hardening, we did submit applications to FEMA (Federal Emergency Management Agency) for a hazard mitigation grant. It's currently under review. I'll have to check with the project managers if that had anything to do with the specific timing and way they did the contract as well. Page 4 FC-25 December 16, 2025 CHR. KANEALI`I-KLEINFELDER: Were the first consulting services estimates that much lower than what the change order reflects? MS. KALUA-LEWIS: That I would have to check. I wasn't a part of that professional services review. CHR. KANEALI`I-KLEINFELDER: Who was that? MS. KALUA-LEWIS: We have committees. So if it's for a specific category, there's designated committees who would review the resumes, submit it at the beginning of the fiscal year, and that's done via Purchasing and DPW intranet. CHR. KANEALI`I-KLEINFELDER: That was earlier this year? MS. KALUA-LEWIS: That was actually when the original contract started. So when they selected Mitsunaga, it would be the original contract date, which it looks like it entered into agreement May 11, 2022. CHR. KANEALI`I-KLEINFELDER: Okay. Okay. Thank you, Ms. Kalua- Lewis. I appreciate it. MS. KALUA-LEWIS: No problem. Okay. Anyone else? Okay. Seeing no further discussion. Motion is on the floor to close file on Communication 24.23. All in favor? Vote on Comm. 24.23: The motion to close file on Comm. 24.23 was carried by Filed the following voice vote: Ayes: Committee Members Galimba, Inaba, Kagiwada, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 7. Noes: Committee Member Hustace — 1. Absent: Committee Member Kierkiewicz — 1. Excused: None. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Page 5 FC-25 Res. 405-25: Motion to Approve: December 16, 2025 AUTHORIZES THE MAYOR TO ENTER INTO AN INTERGOVERNMENTAL AGREEMENT WITH THE STATE OF HAWAI`I, DEPARTMENT OF HEALTH, TO RECEIVE A GRANT FOR FOOD ACCESS SUMMITS Allows for the receipt of $40,000 of federally -derived funds to plan and facilitate two Food Access Summits that will be used to collect data, support community collaboration, and showcase successful projects. Reference: Comm.631 Imr. by: Council Member Kaneali`i-Kleinfelder (B/R) Mr. Inaba moved to recommend adoption of Res. 405-25. Seconded by Mr. Hustace. CHR. KANEALI`I-KLEINFELDER: Discussion? Council Member Kimball, go ahead. MS. KIMBALL: Yeah, I just have a pretty simple question. Did one of these food summits take place already? The resolution indicates Fall 2025 and then Spring 2026. CHR. KANEALI`I-KLEINFELDER: That is a great question. Maybe Mr. Medina or Research and Development can help with that. Please introduce yourself for the record and thank you for being in the chambers this morning. (Note: At this time, Research and Development (R&D) Deputy Director Dennis Lin and Sarah Freeman came forward to address the members of the Committee.) MR. LIN: Good morning. Deputy Director Dennis Lin for R&D, and I have here Sarah Freeman with our department. So the intention from the state was to provide money for these summits. We're going to utilize some of these funds for summits that have already happened. But just to happen that we have the agro- policy summit, so we might use some of those funds to reimburse some of the costs that was associated with that. But Sarah and her team are also working on future summits. So I will ask her to speak upon those initiatives. MS. FREEMAN: Sarah Freeman, Department of Research and Development. So as part of our planning for the five-year agro-food systems and community food security plan, we're going to have a total of six regional summits to share with the community the draft plan and one final summit that's aimed to be in August of next year. And so we will be doing a lot of these activities through a lot of 2026. And we also have some other kind of smaller convenings of folks who represented in the plan in the beginning of the year. So we'll be utilizing funds for these activities as well. Page 6 FC-25 December 16, 2025 MS. KIMBALL: Okay. So it remains unclear to me from your comments there if these funds are going to be used to support events that have already happened. Absolutely thrilled that we get this funding from the state, thrilled that you're doing these policy summits. I appreciate all the work that you do, Sarah. But if these are meant to be utilized for something that has already happened effectively a reimbursement, I think we need to actually just do some minor amendments to the language in the resolution to make sure that this is kosher as far as being an approval for after the fact. So just to I guess note that this is going to be retroactive in terms of a reimbursement. MR. LIN: Council Member, so we don't necessarily have to use it for that agro- policy summit that just happened. We've already paid most of the expenses for that. We can just move it straight forward to next year and utilize all the $40,000 for future summits going forward. MS. KIMBALL: Okay. If that's the plan, which I think is great, you know, more funding for future events is better. Let's make a brief amendment then to the resolution that removes the reference to Fall 2025. MS. FREEMAN: Yes. Thank you. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. Yeah. Sarah, thank you for working on this. Great job. Deputy Director Lin, I'm wondering what the plan is to then actually fund some of these good ideas. I mean, we already know that we have programs out there that work, that increase food production and get more local foods to our residents out there that are not being funded completely. So we're going to have some more good ideas hopefully coming out of these summits. But then where does that information go; do we have funding to follow up with that to actually then see those through and make them happen? Can you explain a little bit about that process, so I understand? MR. LIN: Yeah. Thank you, Council Member, for your question. So as of right now, for example, the agro-policy summit, we're still collating all the responses and activities that happened there. But in terms of what Sarah's doing out in the community, gathering the input from all these different focus groups and what not. What we have done in discussion with the Mayor is try to work on what type of funding line can we put into our budget. And that's currently under review and we won't know what the result of that is until we hear back, and hopefully we'll have a more robust discussion as we get towards budget hearings in April. MS. KAGIWADA: Okay. I just worry that when we do these kind of summits it does seem a little bit that there might not we direct promise to the community but we are talking about, you know, we want to hear what works, we want to hear what's going well, we what to know how we can support this, and then we don't Page 7 FC-25 December 16, 2025 come in with any plan for actually funding the work for the good ideas. To me, it's not really following through on what we should be doing with the community. So I do hope that there is a plan or that there is a plan that it will be evolving out of this to actually then get some funds behind some of these good new programs as well as existing programs that we know work already and are underfunded. MR. LIN: Absolutely. And that's also in collaboration with state funding as well. So how do we advocate on that side with legislation and what not. So as we work through all the different inputs and the feedback that we're getting, that's formulating that five-year plan that Sarah's team is working on. So how do we plan and then to action. MS. KAGIWADA: Okay. And will we be giving some kind of presentation once you guys kind of have all the results in on this? MR. LIN: There will be an after action report. So once we get all that information done, we'll send it out to the public and everybody else. MS. KAGIWADA: Okay. Okay. Thank you so much. I yield. CHR. KANEALI'I-KLEINFELDER: Thank you. Council Member Hustace. MR. HUSTACE: Thank you, Chair. I appreciate the resolution coming forward and I appreciate the dialogue here. Just a question about the vision for the food access summits on what you kind of perceive there. I had the opportunity to attend the agro-policy summit with you, Sarah, last week and some members of R&D. So just curious, you know, the vision for these food access summits. In the whereas clause it speaks about collaboration, collecting data, showcasing successful projects, all these sort of things. Can you speak a little bit more about that and kind of the vision for those summits in terms of reference to the agro- policy summit, does it look like that and just advocacy for projects and policy goals, initiatives, but are there other opportunities to collaborate with other agencies as well? MS. FREEMAN: Yes. Thank you. For the agro-policy summit, that one really is focused on policies and we did take, you know, initiatives that were brought up last year at the last summit as well as items from the general plan and then policies that we knew that were going to move forward. And I think those kinds of processes are also really good and just encouraging that community engagement into the policy process. And so we also get that framework as policies move forward both on the County and state side, how to best report that out to community that's been participating to show what those wins have been as was demonstrated during the summit. I think for the summits moving as we look forward; we've been working with various partners and stakeholders in the County and state wide in developing the Page 8 FC-25 December 16, 2025 draft of this plan. And so when we get to having these regional summits March through June next year, the aim is to really have a draft plan that community can engage with but also is a place for presentations. And also in highlighting those things as it says and really showcasing different pieces in those areas for collaboration, we plan to partner with different community stakeholders in the planning of those regional summits as well. So the County will have our part presenting on what has happened so far, how to give feedback, how to be engaged, and then other parts of it will also be codeveloped with community through those processes. Then our aim with the final summit in August is to kind of have that final version of the plan and that being more of a larger community celebratory event and showcasing and really communicating how the aim for that plans to ridge up on that process and a little bit more about collaboration within the plan. There's been a lot of work to identify making sure alignment with different County and state HRS (Hawai`i Revised Statutes) as well as how we demonstrate that alignment to community development plans as well as the general plan so that we can demonstrate to Council how these different actions are moving forward those things over time. And we also have it tagged in actions whether that is related to a County or whether state or other partners within the plan, so that can be clearly demonstrated and tracked through that process. MR. HUSTACE: Thank you, Ms. Freeman. I appreciate those details and kind of that vision for the summit and the opportunity we have to collaborate with different agencies. I'm looking at some of those policies that are already engrained and what we're working towards as well. So thank you for trying to encapsulate all of that in there. There's definitely that opportunity to collect data and pull in different partners. I think you guys have to think about all the different other departments within County ourselves or in community that could be at the table in these conversations that would speak to food access and our agricultural systems. I mean, one particular one that comes to mind right now for me is just our housing side of things with workforce housing particularly for our ag workers and how that plays a role into a robust ag system. So I definitely recommend that be an inclusive piece of those conversations to help our farmers, to help kind of those economic drivers in our community. MS. FREEMAN: Agreed. Thank you. And I can follow up and share a little bit more about the plan, but it will be in a brief model. And so I think we have over 40 briefs right now. So one of the briefs is on agricultural housing, for example. And so it'll provide background information, challenges and opportunities, and then goals and actions within each of those. And so we've really looked at products, issues, inputs and infrastructure markets, and community food security as kind of these overarching pieces that have various briefs related to moving different things forward that's been identified by our stakeholders. But yes, as we move forward, we'll do our best to keep you guys informed to see how not only Page 9 FC-25 December16,2025 you can participate but any recommendations you have of who should be participating in these processes as well. MR. HUSTACE: Thank you, Ms. Freeman. I appreciate that. Thank you, Deputy Director. Thank you, Chair. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Galimba. MS. GALIMBA: Thank you. I just wanted to second some of the comments that Council Member Kagiwada made. I think that I want to laud the department for their continuing to work on building up our agricultural and food systems practice. And I would definitely love to see some follow on funding in the budget to support this work because it is so important. We are just stuck seeing the erosion of food security in our community. And so it is so, so important that folks can be more food secure is really sort of one of the most basic things. So thank you very much for this work and look forward to how we can help you to continue to strengthen this part of the County's work. CHR. KANEALI`I-KLEINFELDER: Thank you. Okay. Seeing no further discussion, we have the motion on the floor. All in favor? Vote on Res. 405-25: The motion to recommend adoption of Res. 405-25 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. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Bill 110: AMENDS ORDINANCE NO. 25-45, AS AMENDED, THE OPERATING BUDGET OF THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR ENDING JUNE 30, 2026 Increases revenues in the revenues in the State Grants — Hawai`i County Food Access Summit Program account ($40,000) and appropriates the same to the Hawaii County Food Access Summit Program account. Funds will be used to plan and facilitate two Food Access Summits that will be used to collect data, support community collaboration, and showcase successful projects. Reference: Comm.631 Intr. by: Council Member Kdneali`i-Kleinfelder (B/R) Page 10 FC-25 December 16, 2025 Vote on Bill 110: Mr. Inaba moved to recommend passage of Bill 110 on first (Approved) reading. Seconded by Mr. Hustace and 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. ADJOURN- There being no further business on our agenda today, Acting Chair Hustace MENT: adjourned the meeting at 11:30 a.m. Thank you very much. Approved: Mr. Matt K eali`i-Klein Ider, Chair ( ate) Finance Comm MK/tk Page I I