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HomeMy WebLinkAboutMIN GOEAC 2026/01/22 (2024-2026) DRAFT Committee on Governmental Operations and External Affairs 26th Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawaii January 22, 2026 CALL TO The regular meeting of the Committee on Governmental Operations and ORDER: External Affairs was called to order at 9:02 a.m., in the Council Chambers, Kailua-Kona, by Ms. Jenn Kagiwada, Chair. ROLL CALL: Present: Ms. Jenn Kagiwada, Chair Ms. Michelle M. Galimba, Member(came in'later) Mr. James E. Hustace, Member Mr. Holeka Goro Inaba,Member Ms. Ashley L. Kierkiewicz, Member-(via videoconference from Hilo, came in later) Ms. Heather L. Kimball, Member Mr. Dennis "Fresh" Onishi, Member Ms. Rebecca Villegas, Member Absent& Excused: Mr,Matt Kaneali`i-Kleinfelder, Vice Chair 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.) CHR. KAGIWADA: Thank you. Mr. Clerk, could you please go ahead and read in Communication 40.4. COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 40.4: HAWAI`I STATE ASSOCIATION OF COUNTIES' SEPTEMBER 29, OCTOBER 30, AND NOVEMBER 21, 2025, EXECUTIVE COMMITTEE MEETING MINUTES From Council Member Heather L. Kimball, dated December 18, 2025. GOEAC-26 January 22,2026 (Note: Comm. 40.5 from Council Member Heather L. Kimball, dated January 21, 2026, transmitting the NACo Survey 2026, was circulated.) Motion to Close File: Ms. Kimball moved to close file on Comm. 40.4. Seconded by Ms. Villegas. CHR. KAGIWADA: Council Member Kimball. MS. KIMBALL: Yes,just bringing forward the minutes from the HSAC (Hawai`i State Association of Counties') Executive Committee meeting. I also wanted to draw your attention, in your pinkie folder is Communication 40.5. This is a recent post-survey of Council Members across the National Association of Counties Organization (NACo). No real discussion about'it just thought it might be something of interest to you folks. So,'I wanted to share that. Thank you. CHR KAGIWADA: Thank you. Was this the survey that we got as well? MS. KIMBALL: Yes, all of NACo members were invited to it to respond. CHR KAGIWADA: Okay,great. I don't remember seeing it. But that's great, and I hope some of our folks here in Hawaii participated. Any other comments or questions from Council Members`? Seeing none, all those in favor on closing file on Communication 40.4 please say `aye." Any opposed? Vote on Comm. 40.4: The motion to close file on Comm. 40.4, was carried by Filed the following voice vote; Ayes: Committee Members Hustace, Inaba, kimbally Onish , Villegas, and Chair Kagiwada—6. Noes: None. Absent: Committee Members Galimba, Ianeali`i-Kleinfelder, and Kierkiewicz—3. Excused: None. CHR KAGIWADA: Can we go on to Communication 691,please. Comm. 691: NOMINATION OF DERWIN IGNACIO TO THE FIRE COMMISSION From Mayor C. Kimo Alameda, dated December 31, 2025, requesting the Council's review and confirmation. Requires Council Confirmation by: February 13, 2026 (Section 134(k), Hawaii County Charter) Page 2 GOEAC-26 January 22,2026 (Note: At this time, Executive Assistant to the Mayor Micah Alameda and the nominee came forward to address the members of the Committee.) Vote on Comm. 691: Mr. Inaba moved to recommend confirmation of the nomination (Approved) of Mr. Derwin Ignacio to the Fire Commission. Seconded by Mr. Hustace and carried by the following voice vote: Ayes: Committee Members Hustace, Inaba, Kimball, Onishi, Villegas, and Chair Kagiwada 6. Noes: None. Absent: Committee Members Galimba, Kaneali`i-Kleinfelder, and Kierkiewicz 3. Excused: None. Mr. Alameda provided a brief narrative of the nominee's background and experience. Committee Members spoke in favor of the appointment. CHR. KAGIWADA: Thank you so much, and thank you to the Mayor's Office as well. With that, can we go to Resolution 445-26, please.' ORDER OF The Chair directed the Committee to proceed to thenext order of business, RESOLUTIONS: Order of Resolutions. Res. 445-26: REQUESTS THE COUNTY AUDITOR TO CONDUCT A PERFORMANCE AUDIT OF THE USE AND EFFECTIVENESS OF REAL PROPERTY TAX REVENUES APPROPRIATED FOR HOUSING AND HOMELESSNESS The scope of the auditincludes evaluation of performance with respect to the Office of Housing and Community Development's (OHCD) Strategic Roadmap, data indicators and metrics, and compliance with the County Code. Reference: Comm. 686 Intr. by: Mr. Inaba and Ms. Kimball Motion to Approve; Ms. Kimball moved to recommend adoption of Res. 445-26. Seconded by Mr. Inaba. CF1 R: KAGIWADA: Council Member Kimball, please kick us off here. MS. KIMBALL: Yes. So, as we're all well aware, this particular program will sunset in 2027. And just given the timing and the amount of effort that will be needed to conduct a thorough audit to help us make decisions about whether or not to continue to program, it seemed appropriate to start now. Page 3 GOEAC-26 January 22,2026 Also, in light of some of the recent conversations about what we see on the ground; what appears to be effective potential concerns about double-dipping and other things that were mentioned by other colleagues, it just really seemed appropriate to have this evaluated in a really robust way. And I think our auditor is in the best position to do that. Our auditor is available over in the Hilo Chambers. I would really like to suggest that everyone take a look at the `Be it Resolved" clause and the items we have asked the auditor, in particular, to look at and see if there are any deficiencies there and anything you'd like to add. With that, I will yield to my colleague to add any additional comments. CHR. KAGIWADA: Thank you, Council Member Kimball, Council Member Inaba. MR. INABA: Yes, thank you. I first want to mahalo Council Member Kimball for getting the ball rolling on this; something I believe is important to all of us, especially with all the scrutiny that we encounter, and the scrutiny that some of the providers encounter. There are other organizations that the Countyhas found recently to have used funds in ways not aligned with the contract they were awarded. So, I think this is just a great opportunity at the half-way pointfor us to make sure things are running neatly and help to inform whether and how we should choose this program to continue at the end of the five-year period. So, thank you again, Council Member Kimball for getting the ball rolling on this. And,then, maybe heading over to Hilo, County Auditor, if you'd like to make any statement,on the resolution at this time. (Note: At this time, County Auditor Clare McAdam came forward to address the members of the Committee.) MS. MCADAM: Good Morning, County Auditor, I just wanted to say that I read the resolution and if the Council should vote to approve the resolution, we look forward to working with Housing to get the audit started. MR. INABA: Thank you, Auditor, and I know our Assistant Administrator from Housing is there. Assistant Administrator, any statement at this time? (Note: At this time, Assistant Housing Administrator Keiko Mercado came forward to address the members of the Committee.) MS. MERCADO: Aloha, Keiko Mercado, Assistant Housing Administrator for the Office of Housing. Just a statement that the Office of Housing is in full support of this. Page 4 GOEAC-26 January 22,2026 MR. INABA: Thank you so much for being here today. With that, I yield. CHR. KAGIWADA: Thank you, Council Member Inaba. Council Member Onishi. MR. ONISHL Thank you, Madame Chair. A question for the auditor. What is the timeline? MS. MCADAM: Oh, yes. Well, we know that the provisions of the grant will sunset next year. So, we will make this a priority, but I can't at this moment give you a timeline as to when we'll finish. But we do understand the priority of the need to get this audit just because of the provisions of thatsunset. MR. ONISHL Okay, so, do you think we'll be able to get that'Tepprt before the next time we have to award? MS. MCADAM: I mean we would hope,so. ,But obviously, that's going to depend on once we get started with the audit. And,I don't really want to give any kind of timeline until we've at least sort of scoped out the scope and looked at it with the Housing Department. Lout unfortunately, sorry, I can't give you a more definitive answer on that at this time. MR. ONISHL Okay, thank you, I yield; CHR. kAGIWADA: Thank you, Council Member Onishi. Council Member Villegas. MS. VILLEGAS: Thank you for being here. And wow, this will be a nice big juicy lift,for you,joining tie County in the Auditor position. So, thank you for your Willingness to come serve'herein the County of Hawaii and willingness to pick up this heavy lift: While the statements are written in the so `Be it Resolved",just for the sake of the public, want thoselhat may not look at the document, wanted to ask for clarification and confirmation that in this audit, not only will it be reviewing the practices in the Office of Housing, who I want to give big credit to for trying to navigate this process and set things up appropriately and equitably distribute resources, but for the actual recipients of the funding and the grant funding over the last few years. Can'you confirm that their budgets where the monies' been spent; how it's been spent will be part of this audit? MS. MCADAM: Yeah, that's an important part of it. Page 5 GOEAC-26 January 22,2026 MS. VILLEGAS: Okay, wonderful. Thank you, I appreciate that and look forward to a very detailed and precise reflection of where all this funding has gone. And with the years of challenges and robust and oftentimes heated conversations here on the dais, and the number of conversations I have with constituents and homeless service providers who are frustrated with the lack of services and lack of funding, I am hopeful that this will lead us in the right direction. I know that my intention is to be able to allocate resources, but there has to be accountability and assurance that it is making a difference and monies aren't being utilized to just perpetuate, for lack of a better term, an industry in and of itself. So, thank you for your work on this. I appreciate also that,you're new to the County of Hawai`i, so you don't have any conflicts or anying that would put you in a position of prior relationships that mightmake it more challenging for you to bring the full truth, the whole truth, and nothing but the truth to us. So, with that, I yield. CHR. KAGIWADA: Thank you Council Member Villegas. Just for the record, Council Member Galimba has joined us here in Kona. Anybody else on the resolution for the proposed audit for the Housing and Homelessness Fund? Council Member Hustace, please gee ahead. MR. HUSTACE: Thank you, Chair. Appreciate the authors for the resolution. I think the timing is very critical here as we move forward, as Mr. Inaba mentioned, and making that assessment for the program— nd'the years ahead. So, grateful for this. Vm'a,little curious on the strategic road map language and what we're trying to compare that�benchmark to there. CHR. KAGIWADA: To the makers. MS. KIMBALL: So, when the one was created and voted on, shortly after that, there was a resolution introduced by the Council that required the Office of Housing to developthe Strategic Roadmap. And so, within the Office of Housing, there's this Strategic Roadmap that identifies how they intended to use these funds. So, there is actually, a document which I can circulate if you don't have access to it, or perhaps the Office of Housing can circulate it to the body that identifies this Strategic Road Map. In addition, there was a communication from Council Member Lee Loy and I that identified the number of benchmarks that is also listed in the recitations of the resolution that I think there are other metrics to look at in terms of evaluating the procedures. So, there is an actual document to backup that identification of a strategic roadmap. MR. HUSTACE: Thank you, Council Member. Page 6 GOEAC-26 January 22,2026 CHR. KAGIWADA: Are you done? Okay, thank you. Anybody else? Council Member Galimba. MS. GALIMBA: Thank you, and I guess this is to one or either of the makers, I just wondered if we just had the SAS (consulting firm hired by the OHCD) Study done, which had quite a few recommendations, which I thought were excellent, and I believe have been moved on by OHCD (Office of Housing and Community Development). So, I just wondered how those recommendations are going to interact with this audit. Because I see some overlap perhaps, but if you could? CHR KAGIWADA: To the maker. MS. KIMBALL: No, I think at some point, I;think there is definitely some overlap in terms of the programming of the funds. I think that the intention with this resolution is to get a little deeper. Particularly, the funding mechanisms will be supported ultimately with the fuidirig in„how the funding is used. But then also looking at it with a more, I'd like to say,antiseptic evaluation of the effectiveness, right? Just taking it one step back and looking at it within the broader scope of County funding and how effective of a program this has been. Because I think, you know, one of the evaluations that we will be making is whether or not to continue with this program, and if not, to continue this program is there another place where this funding could be used more effectively. So, I think it's maybe a step back, a little more antiseptic of the homelessness issue, and then looking in,a more detailed way than the actual,funding. I'd'ct ally yield a little bit to the Auditor and the Office of Housing to see if they have any,additional thoughts about how those two might interplay, the audit and the previous report. CHR.. KAGIWADA: Assistant Administrator, do you have anything to add since you have been involved with that report and work? MS. MERCADO: I think we'd have to talk to our County Auditor, but I think it would definitely be incorporated in how analysis was done on the adjustments that have been made to the program and whether or not those adjustments are in alignment with our roadmap, and if they're not, why? And perhaps the report from SAS services would help to outline that. I think what I'm also interested in is something that we've struggled with, and we've said it in front of Council before, is that this fund, we tried to look at it very specific, but then we also get drawn out to this bigger picture that Council Member Kimball is alluding to, right? Page 7 GOEAC-26 January 22,2026 So,just really looking forward to this because it's something we talk about on the daily. And so, looking forward to the audit itself, but then also trying to understand this bigger picture of what the fund does, and then this huge issue of homelessness on our island. I don't know if that answers your question. CHR. KAGIWADA: Does that answer your question? MS.GALIMBA: Sure. I guess if the Auditor has anything to add around that, it'll be I guess how you would be looking at that report and how it would play a part in your plan to audit. MS. MCADAM: Yeah, I mean I've read the roadmap and the report, and there's different recommendations in both. So;,just speaking to whatthe Assistant Administrator mentioned here with the funds shift, how that was effective. Has it been effective, definitely plays apart of it, yes. So, I had anticipated,to look at that, and the differences between those towel and the changes that were made. MS. GALIMBA: Thank you. I guess I came in here late, so, that was a little perhaps out of context. But just for me, I'm glad to hear that the OHCD has a positive approach to this. And these audits are always meant to be constructive, more than anything, despite,what the word audit often means in the public mind. I don't think that we are accusatory in this'in any sense of the term. And it is our program. You know, when push comes to shave, this is in some sense, the County Council's program funding that we are asking OHCD to administer on our behalf. Sol,think that, t's really important to say, I believe. And we want to make sure that our,funding is being as effective as possible, so that we can make the best possible decision,.,, o, yeah, that's basically something that I did want to say, and I also look forward to see how this.audit can help to make this funding as effective a possible. And for us to make as good a decision going forward as we can, given the really, you know, there's global influences on this, not speaking national, but even just global differences on this issue. So, I think we ought to take that into consideration, and I yield. CHR KAGIWADA: Thank you so much, Council Member. Alright seeing no ether lights, I have a couple things. One is on one of those kinds of details, to the Auditor. This will be going back to the first round, and so all three rounds that have been completed so far are in process, is that correct? MS. MCADAM: I hadn't actually thought about going all the way back. That's something that I can discuss, but I don't think that was mentioned in the resolution, the actual years of funding, was it total funding, sorry. Page 8 GOEAC-26 January 22,2026 CHR. KAGIWADA: It says, a Comprehensive Review. MS. MCADAM: If that's the Council's intention then, we can do that. CHR KAGIWADA: To the makers, is it your intention to just be auditing this current year, or to go back to the two previous years before this year. MS. KIMBALL: No, I hope that it's clear in the first line of the, `Be it Resolved" clause, that this is a Comprehensive Review of all fiscal aspects of the program. CHR KAGIWADA: Okay. So, all the years prior. Alright, thank you so much. So, with that in mind, I know there have been public and some Council Member concerns about favoritism with granting some of these grants, So, I hope that you will be able to look at the paper trail of how these grant awardee§were selected, and what that criteria was and to give us a clearer picture in that sense; the way that the money has been awarded in the Bast to give us a clear picture of that. Is that something you intend to include in the audit? MS. MCADAM: I think that's basically sort,of a facet of all audits when it's funded into grants, is to demonstrate that they were made in partial manner. CHR KAGIWADA: Okay. Terrific,thank you so much. And then, to Assistant Administrator Mercado,just wondering on'the timing. I just want to go back to clarify that. So, there are two more rounds, I believe, that are funded currently. Is that correct` MS'.,MERCADO Yes. We're currently in the midst of Round 3 and initiating Round 4. CHR KAGIWADA: Okay. When do you foresee needing to know if this program will go ahead or,not, in order to do what you need to do? I think we need to have some sense of that date, so that both the Auditor and our decision-making can make sure thatwe address in time. So, do you have a sense of that? MS. MERCADO: Just initially, I would say, at least in enough time to figure out staffing and those sorts of things. So, I'd like to look at some of the other timelines that we're up against in order to figure out how we do that, right? Adding staffing positions and things like that. I can get back to you with a more definite timeline. CHR. KAGIWADA: Okay. As you work with the Auditor in going forward, if it looks like we're not going to basically get the information, and then have enough time to deliberate and discuss and make some decisions before you need to start preparing for a next round, if you could please make sure to bring that to the attention of the Council, so we can consider maybe extending one year or doing something just to make sure that we don't disrupt before we have a chance to see the information and decide. If you could do that, that would be super helpful. Page 9 GOEAC-26 January 22,2026 MS. MERCADO: Yeah, can do. CHR. KAGIWADA: Thank you so much. Alright. We have one more light back on. Council Member Onishi, go ahead. MR. ONISHL Thank you, Madame Chair. This is to the Auditor. I guess when this funding was created, and this is what you've got to really look into too, the legislation was basically about the funding, and it wasn'treally detailed in it, how the legislation is supposed to be created. And through discussion, what I understand through the meetings, that's how Housing,had gotten like, what the format has to be. Is that correct, Keiko? MS. MERCADO: Yes, the ordinance and,the Strategic Road Map. MR. ONISHL Okay. And so, that's something that you need to look into too. So, that way, I guess for future legislation,that's going to be providing funding to any department on any program that, I guess, for us the Leg.(Legislative) Body, we need to be maybe more detailed within the ordinance, right, or within what we're proposing. So, that way it'll make it more clear towards the department of what they need to do. I yields thank you. CHR KAGIWADA: Thank you, Council Member. Oh, Council Member Kierkiewicz, I'm sorry, I didn't see thaty6u joined us. Would you like to say anything in this discussion before we take'a Vote? MS: KIERKIEWICZ: I'm in full support of the audit. I think my colleagues did an excellent job covering what they'd hope to see out of the this. And if you could just clarify when we can expect the report coming from the office, that would be really great. +; MS: MCADAM: Hi, yes, County Auditor. I was asked that question earlier, and as far as the timing right now, until I have at least a chance to get in and look at where we stand with the audit, and with Housing's staff to help us with that. We understand that it is obviously a big priority for the Council, and we'll do our best to be able to provide you with a report prior to the next round of funding having to come out. But I would be remiss if I was to make any sort of guarantee with the timeframe. MS:KIERKIEWICZ: Got it. I think between now and Council, it would be great for the Auditor's Office to connect with OHCD to have just a better sense on timing. Page 10 GOEAC-26 January 22,2026 I think it's really important that we get this information that provides clear directions for how the Council can proceed before the fourth round of funding is available to RFP (Request for Proposal) out to community. Having said that, there's nothing that restricts any member of this Council to introduce a bill to pause on the program or to cancel it all together. We don't actually have to keep pushing money out into the community until 2027, right? That is something that Council Member Aaron Chung suggested to see how this could play out, but I think we would be remiss if we did not take into consideration, you know, the findings of the audit to inform you how to best strategically use the funding for the fourth and fifth round. So, I just offer that and hope we can have a sense of, is it six months, is it 12 months, is it 18 months from now?,How long would the Auditor's Office need to conduct its job and offer a comprehensive report to the Council. So,,L hope we can hear a little bit more from you on,that in the,next couple weeks. Thank you, Chair, I appreciate the latitude, I yield. CHR. KAGIWADA: Of course, thank you. Alright with that, all those in favor on approving Resolution 445-26 and sending it to Council with a favorable recommendation, the requestfor'a performance auditof RPT (Real Property Tax) revenues for Housing and'Homelessness,please say"aye." Any opposed? Vote on Res. 445-26: The motion to recommend adoption of Res. 445-26 (Approved) was carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kagiwada— 8. Noes None. Absent: Committee Member Kaneali`i-Kleinfelder— 1. Excused: ' None: CHR KAGIWADA: Thank you, and we come to the end of our agenda. The time is 9:36 a.m., and we are adjourned. Thank you. Page 11 GOEAC-26 January 22,2026 ADJOURN- Seeing no further business, Chair Kagiwada adjourned the meeting at MENT: 9:36 a.m. Approved: Ms. Jenn Kagiwada, Chair (Date) Committee on Governmental Operations and External Affairs JK/dt Page 12