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HomeMy WebLinkAboutMIN CRCOC 2026/03/17 (2024-2026) DRAFT Committee on Communications, Reports, and Council Oversight 18th Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawai`i March 17, 2026 CALL TO The regular meeting of the Committee on Communications, Reports, and ORDER: Council Oversight was called to order at 2:00 p.m., in the Council Chambers, Kailua-Kona, by Ms. Rebecca Villegas, Acting Chair. ROLL CALL: Present: Ms. Rebecca Villegas, Vice Chair Mr. James E. Hustace, Member Mr. Holeka Goro Inaba, Member Ms. Jenn Kagiwada, Member (via videoconference from Hilo) Mr. Matt Kaneali`i-Kleinfelder, Member (came in later) Ms. Ashley L. Kierkiewicz, Member(via videoconference from Hilo) Ms. Heather L. Kimball, Member(via videoconference from Hilo; came in later) Mr. Dennis "Fresh" Onishi, Member Absent& Excused: Ms, MichelleM. Galimba, Chair STATEMENTS The Acting 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 Acting Chair: Susie Osborne: Comm. 757; in support. (representing Ho`oulu Lahui) COMMUNI- The Acting Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 35.5: QUARTERLY AFFORDABLE HOUSING REPORT: OCTOBER 1, 2025 — DECEMBER 31, 2025 From Housing Administrator Kehaulani M. Costa, dated February 27, 2026, transmitting the above report pursuant to Section 11-19 of the Hawaii County Code. CRCOC-18 March 17,2026 Motion to Close File: Mr. Inaba moved to close file on Comm. 35.5. Seconded by Mr. Hustace. ACTING CHR. VILLEGAS: Do we have representative from Housing joining us from Hilo today? MR. INABA: Administrator Costa, should be joining., She there in the Hilo Chambers? MS. KIERKIEWICZ: She is not. ACTING CHR. VILLEGAS: Alright. Welcome, please ego ahead and come on up. Just state your name for the record. (Note: At this time, OHCD Anne Bailey came forward to address the members of the Committee.) MS. BAILEY: Good morning, or good afternoon. My name is Anne Bailey and I'm with the Office of Housing and Community Development(OHCD). And I'm here this morning to answer any questions regarding Communication 35.5. This is our Affordable Housing,Quarterly Report for the period of October 1 through December 31, 2025. I think there's a couple of notable items. One is that the excess credit balance has changed. We were able to award 28.5 excess credits to A0674 Kaiaulu O Waikoloa, L.P. This is the project that was built by them called Kaiaulu O Waikoloa. They built 60 units in the Waikoloa Village area. Property owned by the County of Hawa`i. They began the process in 2020 and over the course of six years, they were able to come up with $84 million dollars to fund the project, and we are leasing up as we speak. So we're very excited about it. Second most notable action that occurred during this quarter was the change in additional excess credit balances where Kona Country Club balance of, I believe it was six, was zeroed out. We talked about this at the prior Council meeting. Gretchen Osgood's credits were also zeroed out. She had a previous balance of 41 and it's'been determined that these were pre-awarded credits for the Luna Loa Projects, which was part of the Federal case, excuse me, the Westview Project, which is part of the Federal case. So we've zeroed those out. No housing has been built on that site, to date. The most exciting thing we can report in the last quarter is we have 158 new affordable housing units. Two projects, first one is Na Hale Makoa, this is again, anew project in Waikoloa built on county property. 140 units were built, they're leased up and, well actually they're almost leased up, so we're very excited about it. This is a project that, with $84 million dollar project as well so, it took a bit of time to get off the ground but, here we are. Happy to report that 140 new Page 2 CRCOC-18 March 17,2026 units have come online. Additionally, the other 18 units that came online was when the County of Hawaii purchased the Dolphin Bay Hotel. This has now been placed into perpetual affordability funds that were used to puchase this project was (2:07:09) provided by the Federal Government. The project is being leased up as we speak. So again that's 18 units, total for the quarter is—gosh what did I say? 140 plus 18, so 158. So congratulations County of Hawaii, we are now able to offer 148 new units. Any questions? ACTING CHR. VILLEGAS: Thank you, for sharing that with us. Handing it over to Council Member, Inaba. MR. INABA: Thank you, Chair. Ms. Bailey for the Waikoloa project, do you know when we had entered into the Affordable Housing Agreement for that proj ect? MS. BAILEY: For which one? MR. INABA: The Waikoloa project that resulted in 28 and a half excess credits. MS. BAILEY: Ah yes, That was, oh gosh, quite a bit of time ago. Prior to when we had to give you"the requirements for submitting the Affordable Housing Projects. But we can provide that, we have it. MR. INABA: Perfect. Yes, if you could just provide a copy of that to the Council and just want to thank you and OHCD. This is a really good report. We've found discrepencies, we've corrected them, and we have the opportunity to highlight the work that your office is doing with the new units online. So, I think the report's Working. Thank you, I yield. MS. BAILEY: Thank you. ACTING CHR. VILLEGAS: Any other Council Members? In Hilo anyone have any comments or questions? MS. KAGIWADA: Yes. Thank you, Chair. ACTING CHR. VILLEGAS: Yes. Go ahead Council Member, Kagiwada. MS. KAGIWADA: Yes. Thank you for this really good report. I just have one question. We still don't have any Kauhale on this island. But if we were to get one, or two, or three up and running, would that fall under the permanent supportive housing numbers? Do you know? MS. BAILEY: I think it would ultimately be determined based on what actually happens with the Kauhale. Are they rental units? Is it truly a permanent support Page 3 CRCOC-18 March 17,2026 of housing? So it could be placed either way. But most likely in the permanent supportive unit section. MS. KAGIWADA: Okay. Yeah I'm just looking MS. BAILEY: 2:09:37 MS. KAGIWADA: Thank you. Thank you. I'm just looking at that, and you know, we have a total of 50 units for the whole island under permanent supportive housing and it just seems like a very low number, considering the need. So I was just looking at that number and hoping as we move forward, and hopefully work on these issues we can get those numbers up to really start filling that need in the community. So thank you for this report,'it's very good. I appreciate it. I yield. ACTING CHR. VILLEGAS: Thank you, Council Member Kagiwada. Anyone else in Hilo? Okay. Seeing none. Just to close out, I also concur, this is good news. To see more units becoming available and the leasing process already being under way. And if I understand correctly, the zeroing out of The Affordable Housing credits, essentially means they just disappear. MS. BAILEY: They disappear. ACTING CHR. VILLEGAS: Yes. Well, having seen that as a burden, and kind of a financial liability and what might be considered accidently a barrier to creating more workforce and affordable housing, I'm happy to see credits disappear and really grateful, in my time of tenure, the attention being given to the credits, flow they're being managed and tracked and being held accountable, and also being authenticated. So, thank you. It is an overall, good report. So thank you for coming in today and providing this for us. If there are no other comments, all those in favor of closing file on Communicaton 35.5 please say, CC }} aye. Vote on Comm. 35.5: The motion to close file on Comm. 35.5 was carried by the Filed following voice vote: Ayes: Committee Members Hustace, Inaba, Kagiwada, Kdneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, and Acting Chair Villegas—8. Noes: None. Absent: Committee Member Galimba— 1. Excused: None. ACTING CHR. VILLEGAS: With that, can we move onto the next item on the agenda. Page 4 CRCOC-18 March 17,2026 Comm. 757: 2025 ANNUAL REPORT OF THE PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION COMMISSION From Mayor C. Kimo Alameda, dated February 20, 2026, transmitting the above report pursuant to Section 2-218 of the Hawaii County Code. (Note: Comm. 757.1, from Council Member Michelle Galimba dated March 17, 2026, transmitting testimony received from the Puna Community Development Plan Action Committee regarding Communication 757, was circulated.) Motion to Close File: Mr. Inaba moved to close file on Comm. 757, Seconded by Mr. Hustace. ACTING CHR. VILLEGAS: Do we have someone from Finance here? Or in Hilo? MS. KIERKIEWICZ: Chair, we actually have someone from the PONC (Public Access, Open Space, and Natural Resources Preservation Commission) team, Ben Shapiro here, he's approaching. ACTING CHR. VILLEGAS: Alright. Great. Thank you, Council Member, Kierkiewicz. Aloha Ben. Please have a seat and share your name for the record and this other good news. (Note: At this time, PONC Program Manager Ben Shapiro came forward to address the members of the Committee.) MR. HAPIRO: Good afternoon, Ben Shapiro, I am the Program Manager for the PONC team in the Department of Finance. ACTING CHR. VILLEGAS: Fantastic. Is there anything you'd like to share with us specifically based on this report, today? MR. SHAPIRO: Just that we're very pleased with the work of the commission at putting this report together. They worked really hard to get this out to the Mayor on time, and of course the Council now. They're very excited and enthusiastic about the nominations, so I just want to thank the commission for all their hard work, including past commissioners who have now departed the commission. And we're looking forward to see where we go from here. ACTING CHR. VILLEGAS: Fantastic. Thank you so much. With that I'll open it up to Council Members for questions, comments. Yes, Council Member, Hustace. Page 5 CRCOC-18 March 17,2026 MR. HUSTACE: Thank you, Chair. No questions,just of course, want to echo the sentiment for our new manager here, PONC Manager Shapiro. Want to echo sentiment supporting, thanking our PONC commissioners and the work they did in presenting this to us. Thank you, Chair. ACTING CHR. VILLEGAS: Thank you, Council Member Hustace. Anyone else? MS. KIERKIEWICZ: Chair. ACTING CHR. VILLEGAS: Yes. Council Member, Kierkiewicz. MS. KIERKIEWICZ: Thank you. I also want to just, mahalo nui the commission for their very extensive work and the PONC team. I happen to be an individual that nominated a property, in partnership, with the community partners. And so to see first hand, the level of committment these volunteer commissioners have to this work, is truly amazing. They really take so much time, outside of the commission meetings to visit property sites, go through all of the information, you know. Dialogue amongst themselves. So these recommendations that they're providing are very well thought out. One of the interesting things that were added to this years application was a question about the willingness of property owners to either sell or dedicate it as a conservation.. easement. Mr. Shapiro, can you share a little bit about, why that was done and how that kind of helps your office, the Finance Department, working with Council members to, you know, begin thinking about resolutions for property acqusitions. MR. SHAPIRO: Sure, Thank you, Council member. So yes for the nomination period, was just closed in January, we did add one question, asking nominators if there was, it was their willingness to sell, but it was a question if they have been, if they have consulted or if the owner of the property was in agreement or aware of this nomination. I think that's an important point to note because in the past we have received nominations where the property owner didn't even know that they were being nominated or what that meant. So we don't want to catch anyone by surprise. So I think it's important that, if you're nominating a property, if you're able to, that you have the opportunity to speak with the property owner and let them know what your intention is. We did give an option where they were unsure, because we understand that not every nominator will know, who owns the property and that's also okay to nominate properties that you feel you should be part of the PONC program. So it was just important for us to know because, of course, if the County is going to enter into an agreement, then purchase land from a property owner, there needs to be a mutual agreement to do so. Page 6 CRCOC-18 March 17,2026 MS. KIERKIEWICZ: So with that in mind the seven properties, well there's actually more than seven properties here, but there's seven areas that have been identified for potential acquisition. Any engagement done by your team with those property owners to build awareness of the program or to let them know that their properties have been nominated. What have you done with that information, if anything? MR. SHAPIRO: No, at this time it's been primarily the role of the commission to engage or to conduct the site visits for the preparedness annual report. The Department of Finance has not participated, or not engaged with the property owners at this time. MS. KIERKIEWICZ: Okay. And then, off�the top of your head, of the seven that are listed here, are all property owners willing to entertain negotiations for acquisition with the County? And I bring this up because, you know, Council members are very interested in putting forward resolutions, to authorize the Finance Director to begin reaching out to property owners. But I also know that we have very limited funding within the acquisition funds. So,just trying to understand priorities and the willingness of, you know, property owners that are listed here. MR. SHAPIRO: Yeah, that's a good question, and I'll have to get back to you about how many of these seven properties have willing owners. But your point about our relationship with the property owners, that's something that we're looking into now going into this next cycle for nominating properites. Where, we would like to, as the Department of Finance, also participate in site visits so we can start to build those relationships, where if a property is nominated, scores above the threshold to be make it onto this annual report, Council then decides to make pass a resolution that we already have some type of relationship with the land owner, with the property owner, and we can explain what the PONC program is and what we do, and how it works, and the price in which the County can offer excetra. So I think that's where we want to go, and I would say historically, the department has participated in some site visits, I just can't speak to necessarily how many we have participated in this year, if last year, if we did or not. But I know,moving forward, that we would like to. MS. KIERKIEWICZ: Thank you. Anything else that you would like to add, reflections on, you know, how we've gotten here and where we can go. Thank you. MR. SHAPIRO: You know, one thing maybe I can just add, and this is noted by the beginning, the first page of the report is a letter from the Chair of the Page 7 CRCOC-18 March 17,2026 commission and just echoing, this is from Jodie Rosam, echoing her request for the Council to consider individual resolutions report properties. Just that they spend, as you mentioned, as we discussed, they spend a lot of time working through this report, scoring, ranking, and putting them in a ranked order. And it's important for the commission, particularly, that that'd be accounted for from the Council when they decide what action to take moving forward. So, we're very grateful, from the department side, the PONC team, to continue working very closely with communities, nominators, the commission, Council, the Mayor's office, and the community here in Hawaii. MS. KIERKIEWICZ: Thank you so much for being here. Again, mahalo nui to the commission and everybody involved in generating this report. Thank you, Chair. I yield. ACTING CHR. VILLEGAS: Thank you, Council Member Kierkiewicz. Coming back to Kona. Doesn't seem to have any other questions or concerns. I also want to express my gratitude for the vigilance of the people who serve on the PONC commission to take the time to visit spaces. I think, in a world where things are so digital, it's easy to forget the impact standing, being in a space can provide and visiting these sites I think really, really does do that. I also want to express my gratitude for the relationships being built with the current land owners and I see a trend of those that own large parcels that may have in prior times, had visions for development or other ventures of recognizing the value moving forward to community for historic places and open spaces and being willing to invest and align with our County's PONC program. And so their land, to us, so that we,can protect it in perpetuity for future generations. So all those in favor of closing file on Communication 758 please say "aye." Vote on Comm. 757: The motion to close file on Comm. 757 was carried by the Filed following voice vote: Ayes: Committee Members Hustace, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, and Acting Chair Villegas—8. Noes: None. Absent: Committee Member Galimba— 1. Excused: None. ACTING CHR. VILLEGAS: Oh that was 757. So let's go on to Communication 758. Comm. 758: FAIR SHARE ANNUAL REPORT AS OF DUNE 30, 2025 From Planning Director Jeffrey W. Darrow, dated February 12, 2026, transmitting the above report pursuant to Section 2-162.1(a) of the Hawaii County Code. Page 8 CRCOC-18 March 17,2026 Motion to Close File: Mr. Inaba moved to close file on Comm. 758. Seconded by Ms. Hustace. ACTING CHR. VILLEGAS: Mr. Clerk. Oh, no it's me. We're moving to Mr. Darrow. I can't see him. (Note: At this time, Planning Department Planner Bethany Morrison came forward, via zoom, to address the members of the Committee.) MS. MORRISON: Aloha Chair, this is Bethany Morrison on behalf of Director Darrow from the Long-Range Plannning Division. ACTING CHR. VILLEGAS: Aloha Bethany please go ahead and proceed. MS. MORRISON: Ah yeah, thank you for your time this afternoon. This is our regular annual report of our Fair Share contributions and expenditures as of June 30, 2025. I think of note, it's just a reminder to folks that the intent of the Fair Share funds is really to serve as addressing the impacts from development of a rezone ordinances. And so those expenditures need to be capital improvements, they need to be new construction, not simply repair maintenance but adding capacity. And they need to be located a in the judicial district where the fair share funds were collected. And I'm here to answer any questions, you may have. ACTING CHR. VILLEGAS: Thank you Ms. Morrison. Moving to Kona Council Member, Hustace. MR. IfUSTACE: Thank you, Chair. Thank you, Ms. Morrison. Appreciate the report here. If you could just speak to identifying—define the lapsed appropriations and where those funds go. Or if they can be reprogrammed. How does that asset work there? MS. MORRISON: Sure. So as with the other appropriations that happen through the capital improvement budget, they're valid through, basically three years. And so if those funds don't get used, in this case, they get sort of put back into the pot for future appropriations in that improvement type and in those judicial districts. So we kind of keep a running tab on what's coming in, what's going out, and then if things don't get spent, projects don't get completed or are no longer priority. Then that money becomes eligible for additional projects in that area. MR. HIJSTACE: But those funds are still sitting within those judicial districts within those kind of Page 9 CRCOC-18 March 17,2026 MS. MORRISON: That's correct. Yes. So for, as an example, if a project, let's say a park project, was apporpriated in South Kohala, and that project didn't get completed within the three year time frame or didn't get alloted or moved forward with incumberance. Then those funds will go back into the pot for the South Kohala parks projects. MR. HUSTACE: So it's really contingent upon the department then, an agency to utilize these funds and spend them accordingly? Or do they MS. MORRISON: Yes. MR. HUSTACE: Or they kind of just remain there then unless. Because some of these were lapsed, you know, the dates range 2014, on some of them,just looking at one, for example, in the South Kohala region of lifeguard towers. So that means Parks, didn't use the$20,000? MS. MORRISON: That's correct. MR. HUSTACE: And it's still sitting there,'all this time, over ten years? MS. MORRISON: Yes. "So there's no, for the most part, every once in awhile there is something in that ordinance specific, that says that if the funds are not used within a certain time period then they get refunded. So you'll see some refunds in this, in this report to deal with those specific ordinances. But for the most part, they don't have any expiring date, and so they just sit in that fund ready for available projects. MR. HUSTACE: And then the.deparments are engaged directly with you and Planning to understand what they have remaining in their, that those assets there? MS. MORRISON:, Yes. So this report comes out annually. It's a little bit behind the times because we wait for the financials to close from the fiscal year, before we can generate the report. Because we reconcile with Finance to make sure that we have the right calculations. So this is as of June 30, 2025, then we use this information as we're working through the Capital Improvement Program and budgeting for, you know, letting the departments know what funds are available for Fair Share, if they choose to use those for projects. MR. HUSTACE: And what are those conversations look like between departments, in terms of, they know these funds are here, they have some in programs. Are there any, sometimes, like misalignment on what they want to do versus what's available or they're unaware of the possibility here? Page 10 CRCOC-18 March 17,2026 MS. MORRISON: No I think they're very aware. I think some of the challenge is that some of the balances are quite low and so it doesn't really cover the financial needs of the project. It only does a little bit of a supplement and then they have to find either a county bond or other source of funding. So that can be a limitation sometimes for departments to use the funds. But then I've seen, you know, certain departments kind of using them as a, you know, it's money that's sitting there, where we don't have to go out and borrow. And so, they try to make use of anything that's available in alignment with their priorities. MR. HUSTACE: Thank you. Appreciate it. You know, some I recognize, that some districts have a smaller amount in those, kind of, balances but I,just taking a look at, say for example, North Kona. There's $5.6 million dollars that have lapsed in our parks. I mean that's not a small amount. MS. MORRISON: Yes. I agree. I'm just keeping in mind, you knows our parks programs in particular, have a lot of costs and there's a lot of projects going on for parks. So I don't think it's a matter of that they don't have projects or don't have need but there's just so many projects that are moving, that they obviously didn't have, these weren't priorities to them, when they lapsed. MR. HUSTACE: But these funds could then be reappropriated to projects that do have that priority within those districts. MS. MORRISON: Yes, yes. MR. HUSTACE: So we have that MS. MORRISON: With the same reminder though that they have to be building new capacities. So it has to be something new or larger. It can not be, again sort of recurring maintenance. MR. HUSTACE: Fantastic. Thank you, Ms. Morrison. Appreciate the time. MS. MORRISON: You're welcome. MR. HUSTACE: Thank you, Chair. ACTING CHR. VILLEGAS: Thank you, Mr. Hustace. Council Member, Inaba. MR. INABA: Thank you. Ms. Morrison I'm going to be reaching out. I don't remember it being so delayed, this report. But now it's, the balance that we're being reported on here is almost nine months ago. So I'm not saying that it's as useful as it could be and understanding, like you said, it's based on it being closed out with our new system, with Finance, I think we need to maybe tune up so I'll be reaching out to see how we can tune up our code language here and Page 11 CRCOC-18 March 17,2026 have this report be a little bit more useful and maybe even having it come twice a year because I think often times, the Fair Share amounts go forgotten when there are certain new projects that could be tapped, or could be tapping this financial resource and we're not seeing it necessarily happen. So if you can just start to brainstorm what that may look like, that works for you folks and the inner workings in the department, we'll reach out. Thank you. MS. MORRISON: Absolutely. Thank you. ACTING CHR. VILLEGAS: Thank you, Council Member, Inaba. Anyone in Hilo? MS. KAGIWADA: Yes, please Chain ACTING CHR. VILLEGAS: Yep, Council Member, Kagiwada. MS. KAGIWADA: Thank you. Thank you, Ms. Morrison. So, and thank you, Council Member Hustace. You asked the questions, I was planning to ask. I just have, kind of one, I guess, it's mainly one follow up. So the differenc between what's under appropriations,,say for a project that has also got lapsed appropriations also for that same, appears to be that same project. Can you explain how that works. Why there would be some appropriations and not all of them? MS. MORRISON: Sure. So the appropriations are done through your capital budgeting ordinances. Where there is Fair Share funds identified for those projects. And so that would be the appropriation. So in this report, that shows up as a debit, if you will, to the balance. And then, three years later, if for some reason, that project hasn't gotten off the ground we get a report back from Finance that, that appropriation has lapsed and then there's a new line entered into the report, which would show then a credit to that improvement type and within that district, So you'll see, both the apporpriation and the lapse, so that you can see and sometimes, not an entire, the whole amount won't MS. KAGIWADA: That's fascinating, yeah. Different amounts. MS. MORRISON: That means that they used partial amount of that funding and only partial lapse came back. MS. KAGIWADA: Okay. So if it's under appropriation, it means it's already been spent? Or it's just appropriated? MS. MORRISON: Just appropriated. MS. KAGIWADA: Okay. So what is actually been spent that's not on here. Page 12 CRCOC-18 March 17,2026 MS. MORRISON: Correct. Correct. So Finance keeps track of those, all the different expenditures that are happening and this report is really meant to reflect the most conservative, if you will, so that we don't ever end up with a negative balance of over appropriating projects. MS. KAGIWADA: Okay. So if we have specific questions about projects then this funding, we should go to the departments? MS. MORRISON: Yeah the departments and certainly, you're more than welcome to ask Planning as well, if there's anything that we can do to support the use of those funds. MS. KAGIWADA: Okay. Thank you so much. I yeild. MS. MORRISON: You're Welcome.. ACTING CHR. VILLEGAS: Thank you, Council Member, Kagiwada. Anyone else in Hilo? Nope. Not seeing any. Okay. Council Member, Onishi. MR. ONISHI: Thank you, Madam Chair. So Ms. Morrison, I have a couple questions. So first one is when someone comes in for subdivision and they have, like say, ten homes or fifteen homes and they, Fair Shares x amount. Do they pay the County after all completed homes are done or they do as the homes get completed? MS. MORRISON: So these Fair Share funds are from rezone ordinances, that's the only place that these get applied and so it's not necessarily on every subdivision.'If a subdivision was part of a rezone ordinance, a result of a rezone ordinance, it really depends on what language is included in that ordinance. So some will say the Fair Shares do prior to final subdivision, some will say, I'm trying to think of all the different permutations. Because it happens per ordinance,there are times where there's some special circumstance that the Council has considered, when they approved that ordinance. MR. ONISHI: So as Council, we should be more aware on that wording because if we want it to be upon, I guess, approval, that could be an option. MS. MORRISON: Yes. So whatever trigger we call it a trigger, you know, whenever that payment is due, we rely on the ordinance to tell us that information. And so another example is plan approval, so if the rezone was for a multi-family complex that would not be a subdivision necessarily but they would go through plan approval process within the Planning Department and that language then, should be, you know, sort of the trigger that was used in the ordinance. Page 13 CRCOC-18 March 17,2026 MR. ONISHI: Okay because it seems like MS. MORRISON: The staff, staff prepares those ordinances based on, you know, sort of standardized conditions. However, as I mentioned when by the time it comes to Council there are special circumstances and sometimes that language can be changed to that process. MR. ONISHI: I think it would be much better if we're more consistent. That's all I look at. And the last thing I have, is for the report, is it possible to also include what was, I guess, spent. MS. MORRISON: We'd have to work with the Finance Department to see how that can be accomplished. MR. ONISHI: Okay. I mean that would be great if that can be done. Thank you. I yeild. ACTING CHR. VILLEGAS: Thank you, Council Member Onishi. There are no other questions, I'll just circle this up. Yeah I concur with that kind of request and a little bit of confusion that Council Member Onishi mentions. Put on my second pair of readers, because this is,some very small type, but I see things in here under lapsed appropriations that relate to, you know, the skate park in Kona, and we have worked on and done that already. Also Banyan's Beach Park, I just see a number of Pualani Estates Park, there's $100 thousand dollars in here. So, and I apologize if it's some deficiency in my own mental capacity. But every year we go through this, and every year I remain confused as to who's responsibility it is to tap into these funds for these projects. There area number of projects I've worked with Parks and Rec. on. The Pualani Parks, some people call it the Blue Park, has all these needs, and mind you, because this is of Tune 2025, is there a possibility that Parks and Rec. has already tapped into this and is utilizing these funds for the new equipment and new stuff that's supposed to go in there? MS. MORRISON: You're looking, I'm sorry, can you tell me what specifically, Council Member, which one you're looking at. ACTING CHR. VILLEGAS: Pualani Playground. MS. MORRISON: Pualani Playground. ACTING CHR. VILLEGAS: Under lapsed appropriation for North Kona. Page 14 CRCOC-18 March 17,2026 MS. MORRISON: Sure. So that money has lapsed and is, kind of adding to the capital funds available for projects as of June 30, 2025. So ACTING CHR. VILLEGAS: Okay. MS. MORRISON: That money was not used, the Fair Share money was not used for that project. ACTING CHR. VILLEGAS: Okay so,just let the finances get used in other places. MS. MORRISON: So, and this is why I think the code is written this way. This is required, this annual report is required every year right before the budget comes before you folks. And so within that budget you're going„to see those project sheets, the financial impact statements. And within those financial impact statements you'll see the funding sources listed, for per project. And so that is sort of the best time to be working with the departments and say, "Hey it looks like we have some Fair Share funds. Have you thought about Fair Share funds for that project?" We do that as part of our early on, as we're working through the budgeting process. But really it's up to them as to what they want to put into those, for those funding sources. So that's a good time to ask those departments about the use of these funds and that's why the timing of this report is meant to, can go along with that budgeting process. ACTING CHR, VILLEGAS: Great. So I guess I'll just put a call out there to the departments to please take a look at this as well so that we can support you and these important projects, many have lapsed and were intended for along time. But we don't want to leave money on the table. Especially when zoning changes and developers and all that were required to put these funds to serve their greater general good of our community. Thank you for continuing to educate me on the wild and wiley ways of County government and financing. And with that, all those in favor of closing file on Communication 758, please say "aye." Vote on Comm. 758: The motion to close file on Comm. 758 was carried by the Filed following voice vote: Ayes: Committee Members Hustace, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, and Acting Chair Villegas—8. Noes: None. Absent: Committee Member Galimba— 1. Excused: None. Page 15 CRCOC-18 March 17,2026 ACTING CHR. VILLEGAS: And that takes us to our final Communication for this Committee. Comm. 759: REQUESTS A PRESENTATION BY QUEEN'S HEALTH REGARDING AN UPDATE ON THE QUEEN'S NORTHWEST HAWAI`I REGIONAL PLAN AND THE WEST HAWAI`I OUTPATIENT CARE CENTER PROJECTS From Council Member Holeka Goro Inaba, dated February 25, 2026. Motion to Close File: Mr. Inaba moved to close file on Comm. 759. Seconded by Ms. Hustace. ACTING CHR. VILLEGAS: Mr. Inaba. MR. INABA: Thank you. Honored today to have CEO (Chief Executive Officer) of The Queen's Health Systems, Jason Chang, as well as our West Hawaii Regional Chief Executive Officer Clayton McGhan. Thank you both for being here today. A lot of good progress happening on this matter on both facility in North Kona, specifically in District 8 and I think it's an appropriate time, so do want to thank you folks for reaching out to offer this presentation because it's a lot of news releases coming out but an opportunity just to hear from you folks and get this update. So I'll hand it over to you folks to provide the presentation and then there may be some;questions afterwards. (Note: At this time, CEO of The Queen's Health Systems Jason Chang came forward to address the members of the Committee.) MR CHANG: So gust want to thank the City Council, Vice Chair, Chairs for the opportunity to share on the Communication 759. Have some exciting updates for you, both on the hospital side and the medical office building side and so happy to entertain all the questions. I'm Jason Chang, I'm the President and CEO of The Queen's Health Systems. (Note: At this time, CEO of West Hawaii region Clayton McGhan came forward to address the members of the Committee.) MR. MCGHAN: Hi, my name is Clayton McGhan and the CEO for the West Hawaii region, Hawaii Health Systems. A corporation which is Kona Hospital and Kohala Hospital. MR. CHANG: So we'll start with the Queen's side which is the hospital. (Note: At this time, Mr. Chang came forward and provided a PowerPoint presentation to the members of the Committee. For viewing of the subject presentation, see the DVD copy of the meeting proceedings on file in the Page 16 CRCOC-18 March 17,2026 Clerk's Office or online at http://hawaiigouniv.gov.granicus.com. A copy of the PowerPoint presentation is made a part of the record, see Comm. 759.) MR. MCGHAN: Alright. Thank you so much for having us here Chair, Vice Chair, members of the Council, really appreciate this opportunity to present. (Note: At this time, Mr. McGhan came forward and provided a PowerPoint presentation to the members of the Committee. For viewing of the subject presentation, see the DVD copy of the meeting proceedings on file in the Clerk's Office or online at http://hawaii.°o�uniy.gov.granicus.com. A copy of the PowerPoint presentation is made a part of the record, see Comm. 759.) MR. MCGHAN: So these are all updates, I'm happy to answer any questions you have. MR. INABA: Thank you so much again, the two of you and the entire team for being here today and my apologies, I thought our previous agenda items were going to be a little bit faster, or we would've taken you out of order. But I just want to comment, in terms of location, I think we really hit it right where the need is. Especially in terms of responsible development in the North Kona region, accessibility, looking at some of the events over the weekend in terms of weather and how the lay of the land is here, without a lot of potential for flooding. I think we're really on a good, good track. So as there are further updates, we'd love to have you folks back, and if there's anything that we can do, especially when it comes to the state budget and writing in how, when it's time to go and get that additional $50 million or any of the funds required on the Queen's side, please let us know. It's a need, and we're here to support. Mahalo. ACTING CHR. VILLEGAS: Thank you, Council Member Inaba. Thank you, gentlemen. Opening up to other questions. Council Member, Onishi. MR. ONISHI: Thank you, Madam Chair. I just want to say that, thank you for West Hawaii cause it's really needed. I mean it's been a long time, right, and I have friends that live up mauka, and he lives kind of close to the Kona hospital. And every so often you hear that medic helicoptor going into Kona, picking up and then flying out, right, and he tells me like, "yeah this sometimes happens two, three times a day." Right, and then for our paramedics, you know, something happens down here, you have to drive, what, sometimes 30 minutes, sometimes 45 minutes, right, to get that service. So this is a well needed service that West Hawaii, you know, residents should be happy about. And, you know, Page 17 CRCOC-18 March 17,2026 to me whatever this Council can help you guys in moving this project forward, please let us know. Like hopefully with the housing situation, which is, I think, a great model, because that's what the workforceespecially in Kona that's what we hear, it's so expensive, they can not afford, so that's why you can not find workers. So by providing that housing for your staffing, for doctors and so forth, that's awesome, that, right. And so you at least, you know, you folks are thinking about the whole picture and just not a certain parts of the services, yeah. So I really appreciate that, and like I said, whatever we can help out with, please let us know. I yeild. Thank you. ACTING CHR. VILLEGAS: Thank you, Council Member, Council Member, Kdneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you, Chair. So what is the projected cost of the facility as a whole? MR. CHANG: So $560 million dollars for the hospital and another $100 million dollars for the medical office building. So about $660 million. MR. KANEALI`I-KLEINFELDER: Okay. Yeah so we're, we have a medical facility being potentially built in Kea`au and they were saying their projected cost was $80 million but I was listening to the Outpatient Services section, for $100 million.and I was trying to wrap my head around what I missed. Like how are they doing 100 million for hospital? We're aiming at $80 million dollar medical facility.` What if I missed the $500 million part for the initial part of the presentation. MR, INABA: We wish. You missed the number. MR. KANEALI`I-KLEINFELDER: I thought I missed—no I didn't put something together there. Thank you very much, I think this is much needed and I'm looking forward to seeing how this benefits, or how much this benefits our Kona community. So amazing job, thank you. MR. CHANG: Thank you. ACTING CHR. VILLEGAS: Thank you, Council Member Kierkiewicz. Anyone in Hilo? Sorry, Kdneali`i-Kleinfelder. It's getting late in the day. I don't see any lights in Hilo, with that I'll just sum up, yeah, thank you, having been, you know, born in the old Hilo hospital and my brother's born in Kona hospital, I have a lot of experience with our hospital facilities and as we're all aware, lots of challenges with the reputation, substandard access, not only to providers but to equipment, technology,just all the challenges. I have been a Page 18 CRCOC-18 March 17,2026 little envious of the Benioff Medical Center on the other side, so I am deeply grateful and I think this comes at a pivotal time as the push continues to develop on the west side. With the location being strategically wise, based on location as Council Member Inaba mentioned, my district has been devastated in a lot of areas this weekend with the massive flooding. But this area and space seems, for the most part, safe, you know, closer to the airport, closer to gross spectrums,also. Yeah,just really wisely placed and I'm excited for us to have that upgrade into the 21st century as it comes to access. Having medivac with my mom at least five times in the last 10 years to Oahu. So to have things here would be really helpful, not only for the patients but for the families who need, we all know that collective experience of healthcare, having a space that's familiar and people that are familiar around you. So thank you for this. Not a tiny price tag, but gosh, in a world where price tags just keep getting zeroes, it's not outside of ballparks at this point. So thank you, appreciate you coming here today and providing this report for us. MR. CHANG: Thank you. MR. MCGHAN: Thank you for your time. ACTING CHR. VILLEGAS: Alright all those in favor, oh did you have a MR. RUSTACE: If you don't mind, Chair. ACTING CHR, VILLEGAS: I,mind. No I`m just kidding. MR. RUSTACE; Oh. ACTING CHR. VILLEGAS: Go Mr. Hustace. MR. RUSTACE: Thank you very much, Chair. Just want to mahalo team for coming out today for sharing this presentation with us, and really just want to echo on the partnerships you have between different agencies in the State, County, all the relationships you're building. You know, I recognize, growing up in Waimea, the asset that our North Hawaii hospital is, Queen's Center there. You know, as you pursue that, the housing model piece here, on West Hawaii region, curious to see if that's also modeled in pursuant for some of your other facilities across the state. As you see that possibility in turn out for those spaces, cause there's that need, I think, for a lot of our medical facilities to support in communities. So thank you for that consideration and adding that to the whole matrix of everything, so thank you, Chair. Page 19 CRCOC-18 March 17,2026 ACTING CHR. VILLEGAS: Thank you, Mr. Hustace. And with that, all those in favor for closing file on Communication 759, please say "aye." Vote on Comm. 759: The motion to close file on Comm. 759 was carried by the Filed following voice vote: Ayes: Committee Members Hustace, Inaba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, and Acting Chair Villegas—8. Noes: None. Absent: Committee Member Galimba— 1, Excused: None. ACTING CHR. VILLEGAS: Seeing no more business on the agenda, that brings us to the end of the Communications,Reports, and Council Overisht Committee. With the Finance Committee scheduled to begin at 3:30. ADJOURN- There being no further business, at 2:57 p.m. Acting Chair Villegas adjourned the MENT: meeting. Approved: Ms. Michelle M. Galimba, Chair (Date) Communications, Reports, and Council Oversight Committee MG/mp Page 20