HomeMy WebLinkAboutMIN FC 2026/03/17 (2024-2026) DRAFTCommittee on Finance
31st 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 I
ORDER: in the Council Chambers, Kailua-Kona, by
ROLL CALL:
Present
Absent & Excused
STATEMENTS
FROM THE
PUBLIC ON
AGENDA ITEMS
Mr. Matt Kaneali `i-KleinfeldeA(viav
Mr. James E. Hustace, Vice C
Mr. Holeka Goro Inaba, Mem
Ms. Jenn Kagiwada, Member
Ms. Heather L. Kimball, Member (via
Mr. Dennis "Fresh" ishi, Member
Ms. Rebecca VilleRas er
Ms. Michelle M.
Ms. Ashley L. Ki
I to order at 3:31 p.m.
i `i-Kleinfelder, Chair.
i Hilo)
from Hilo; came in later)
to the next order of business,
to speak and came forward when called by
Res. 475-26, Draft 2 (Comm. 744.4), in opposition.
Res. 475-26, Draft 2 (Comm. 744.4), in opposition.
Res. 475-26, Draft 2 (Comm. 744.4), in opposition.
Res. 475-26, Draft 2 (Comm. 744.4), in opposition.
Res. 475-26, Draft 2 (Comm. 744.4), in opposition.
Dave Baptiste: Res. 475-26, Draft 2 (Comm. 744.4), in opposition.
COMMUNI- The Chair directed the Committee to proceed to the next order of Business,
CATIONS: Communications.
FC-31
Comm. 23.31:
Vote on Comm. 23.31
Filed
Comm. 24.28:
Motion on Close File
March 17, 2026
REPORT OF FUND TRANSFERS AUTHORIZED: FEBRUARY 1 — 15. 2026
From Controller Jon Arbles, dated February 25, 2026.
Mr. Hustace moved to close file on Comm. 23.31.
Seconded by Mr. Onishi and carried by the following
voice vote:
Ayes: Committee Members Hustace,
Kagiwada, Kimball, Onishi, V
Chair Kaneali `i-Kleinfelder
Noes: None.
Absent: Committee Members G ba
Kierkiewicz — 2.
Excused: None.
From Finance Director Diane Naka c
the above report pursuant to Section
Mr. Hustace to close file on
Seconded by
CHR. KANEALI`I-KLE ELD c
Onishi.
Finance
ruary 18, 202 ansmitting
the awai `i County Code.
24.28.
the body? Council Member
' hank you, C%dOor
Is someone from Finance there?
IW . Yes. This here. She's coming up.
Okay.
ote: e, Finance Director Diane Nakagawa came forward to
resIthymbers of the Committee.)
GAWA: Good afternoon, Council Members. Diane Nakagawa,
ISHI: Okay. Thanks, Director. Correct me if I'm wrong, but so now for
th icrosoft Government Enterprise agreement, so it's the fifth time this is being
r iewed or is being requested of the change orders?
MS. NAKAGAWA: Yes.
MR. ONISHI: Could you explain a little bit about it?
Page 2
FC-31
March 17, 2026
MS. NAKAGAWA: I believe we have Director (Corey) Stone in our Kona
Chambers.
MR. ONISHI: Yeah. Okay, go ahead, Director Stone.
(Note: At this time, Information Technology Director Corey Stone came
forward to address the members of the Committee.)
MR. STONE: Hi. Corey Stone, Director of IT (Ii Technology). Yes,
the change order for that one was so that we cnecessary users that
was on our G1 license the G3 license, whJ!S�tw
t omonths of the year
prior to our renewal that started in Februaorus to go to the
Cloud, we needed to get those users, w rks and fire stations.
All of those users needed to be upgr to at license. A ce the license
wasn't going to take effect that wnow of until February, w ed to move
along the projects so we went a quote Q
ose two mon hat we
could move on that project.
MR.ONISHI: So
MR. STONE: No. N
renewal to get those u
times of change
MR. ONISHI: Director,
There was
five ne that we did to do that
isn't a ve ti anae order.
N1,86NAKAGAWA: Council ember Onishi, so I don't believe so. The report
Nagreent
this is�he fifth chan rder supplemental agreement and what that
n also, anytime when ave an option year, then a supplemental
is created. So it co e an option year one. I'd have to go back and
e a IoN, at what eakh one,, e reason for each supplemental. But it doesn't
necessarily an there was a cost increase. So you can see the breakdown in
these c Xtbill
ns the ordinal contract and then the change order amount and the
chanrh
er amount. So IT could go back and break those down for
you and explainf the supplemental requests.
MR. ONISHI: You don't have to. I just was wondering because you educated
on W#t part.
AKAGAWA: Thank you.
MR. ONISHI: But thank you.
MS. NAKAGAWA: You're welcome.
MR. ONISHI: And then, Director, the other one that you can help maybe explain
is about the general plan comprehensive review. So that was like eight times.
Page 3
FC-31
March 17, 2026
CHR. KANEALI`I-KLEINFELDER: Mr. Onishi, I was going to say, which
director.
MR. ONISHI: Ms. Morrison?
(Note: At this time, Long -Range Planning Program Manager Bethany
Morrison came forward to address the members of the Committee.)
MS. MORRISON: Aloha, Council. Bethany Mo n, g-Range Planning
Program Manager here on behalf of Director (J Darrow for Planning. I can
address that, Council Member Onishi. Yes. a e been discussing with
Council, this general time comprehensive ew has en going on for quite
some time. And so several of these contracts ave been amended multiple times
to add additional scope and or add a itional time to complete the contracts. So
that's the case with both the ones t you're seeing on the list is we've
extended their time to allow f cil delib tions and any n hanges
that would be made through that pr
MR. ONISHI: Ol
guess I can talk to
Coming back to Kona.
Thank you. Ther e for the Police Department, but I
Ohlbout that. Okay. hair, I yield. Thank you.
MR. INABA'°.Ms. Mor
c rehensi view?
plan.
Thank you. scussion from Hilo? Okay.
Inab,a7"%,. +4F
1 .
i ' there only these two contracts for the general plan
These are th y two contracts that are active for the general
many have we executed in total?
MS. SO . ould refer back. There was a communication that was
filed.In
uni ion 372.54. That was in September. So we have had seven
contrathis project.
Sorry. And I don't have it in front of me. What was the total so
Total for the contracts is $1,717,189.
MR. INABA: Thank you.
MS. MORRISON: You're welcome.
MR. INABA: Chair, I yield.
Page 4
FC-31
Vote on Comm. 24.28
Filed
Comm. 24.29:
March 17, 2026
CHR. KANEALI`I-KLEINFELDER: Thank you, Ms. Morrison. I'm glad
Mr. Inaba asked that question. It's something I was wondering at the last meeting
when we discussed reinvigorating a new version of the general plan and scrapping
the old one that actually cost us $1.7 million to put together.
MS. MORRISON: Yeah. And just to, again, the communication for that if you
guys want to take a closer look was 372.54.
CHR KANEALI`I-KLEINFELDER: Thank you m
MS. MORRISON: You're welcome.
CHR KANEALI`I-KLEINFELDER:
the body, motion is on the floor to c
favor?
The motion to close file on
the following voice vote:
Commum
carried by
Ayes: C mmitee Members Hu Inaba,
KaAwada, Kimball, Onishi, , and
Chair Kaneali`i-Kleinfelder —
Noes: None.
Absent: Commi e Members Galimba and
Kierkiew — 2.
Exc None.
RE OF ANGE ORDE UTHORIZED: JANUARY 1-15 2026
4sn
agawa, dated February 20, 2026, transmitting
ction 2-12.3 of the Hawaii County Code.
close file on Comm. 24.29.
a.
discussion from
.24.28. All in
`I-KLEINFELDER: Discussion? Council Member Hustace,
away.
7STACE: Thank you, Chair. Just a question for Director Nakagawa with
to the CherryRoad Technologies contract there.
(Note: At this time, Finance Director Diane Nakagawa came forward to
address the members of the Committee.)
MS. NAKAGAWA: Yes, Council Member. Diane Nakagawa, Finance.
Page 5
FC-31
March 17, 2026
MR. HUSTACE: Thank you, Director. If you could just provide us an update on
this contract. It looks like there are two different contracts, nope, the same
contract with different change orders on them. So if you could just provide a
status of where we are with this one?
MS. NAKAGAWA: Yes, happy to. In reviewing it just a moment ago, I will say
I apologize. We do need to do a correction on this and I'll explain it in a second.
There are two change orders. This is fA
search planning system.
This is our new financial and human rcost is $22 million as
shown here on the change order. Chan, in the original cost for
Change Order 4, we had included in thion and the scope of
work to provide us with the necessary provement district
assessments. That would be Change O
ime in this
implementation process that we are ing enGov, the on
board as part of the original solicitatio e do need to sign as a software
agreement. We actu lly do need the Cou sign off as the users of this
software agreement, is the same reas the other Supplemental No. 5,
and that is for ADP, a 'll handle like 1 taxes, so the issuance of
our W-2s. Again, this a din the on solicitation and the original
cost of our system. We a doing emen agreement to be able to sign
as users of this software.
US . Thank you, irector. I appreciate those remarks. Next
on for DW (Departmen Public Works) on Aupuni Center sewer
And the correction that I do need ake; it is a zero cost su ental. And the
reason that we're needing to d this po is this is the po7son�tractor
11111Wlic Works Business Manager Kelsey Kalua-Lewis
to address the members of the Committee.)
MS. A -LE Good afternoon. Kelsey Kalua-Lewis, Public Works.
MR. HU ACE: Was this one on a previous change order for removing Phase 4
scope of #rk and second part of that, what is the Phase 4 scope of work?
IMLAWKLUA-LEWIS: So this was actually, I believe Phase 4 was added in
s emental two. We are going to remove it; we actually had the scope
r oved. It was for the renovation of the Planning Department's men and
women's restroom. We have gotten it repaired but they took out some work I
guess to kind of renovate I guess not need to haves for some cost savings.
MR. HUSTACE: Okay. So not necessary then for those restrooms as you had in
house repairs.
Page 6
11111Wlic Works Business Manager Kelsey Kalua-Lewis
to address the members of the Committee.)
MS. A -LE Good afternoon. Kelsey Kalua-Lewis, Public Works.
MR. HU ACE: Was this one on a previous change order for removing Phase 4
scope of #rk and second part of that, what is the Phase 4 scope of work?
IMLAWKLUA-LEWIS: So this was actually, I believe Phase 4 was added in
s emental two. We are going to remove it; we actually had the scope
r oved. It was for the renovation of the Planning Department's men and
women's restroom. We have gotten it repaired but they took out some work I
guess to kind of renovate I guess not need to haves for some cost savings.
MR. HUSTACE: Okay. So not necessary then for those restrooms as you had in
house repairs.
Page 6
FC-31
March 17, 2026
MS. KALUA-LEWIS: Yes. So the restrooms are fully operational. This would
have been just for additional renovation work.
MR. HUSTACE: Perfect. Thank you for clarifying what Phase 4 was. Thank
you, Ms. Kalua-Lewis.
MS. KALUA-LEWIS: You're welcome.
MR. HUSTACE: Thank you, Chair.
CHR. KANEALI`I-KLEINFELDER: Than u.
MS. KIMBALL: Chair?
CHR KANEALI`I-KLEINFEL :Yes, Council Member all.
MS. KIMBALL: Just to note that t ang r that was just cussed as
I've mentioned in previous meetings i mming and Associates, an
architectural firm th t my husband is res le for. But since this is a report, I
don't see that there i flict. Thank you.
CHR KANEALI`I-KL Thank you noting that, Council
Member Kimball. Is Env nmen eme able to answer a question?
MS. KIMBALL,: Yes, we h EM (Depa ment of Environmental
Managemen e.
'I-KLEINFELqW. Thank you for being here, Ms. Bauman.
s vironmental Management Business Manager Robin
e forward to address the members of the Committee.)
MS. AN: IWGood afternoon. Robin Bauman, Business Manager for
CHR KANEALI`I-KLEINFELDER: Thank you. I have two questions for you.
Ynvironmental
`1kou Wastewater Treatment Plant roof repair and the Kula`imano
ter Treatment Plan roof repair, I believe, and correct me if I'm not right
ut these are also facilities that we're required to fix under the EPA
Protection Agency) consent decree?
MS. BAUMAN: Yes. That's correct.
CHR KANEALI`I-KLEINFELDER: And how does this fit together with the
work that will be contracted at some point and us fixing the facilities that needed
to be fixed.
Page 7
FC-31
March 17, 2026
MS. BAUMAN: I believe these were, you know, more immediate needs that
needed to be repaired and we're still working on the rest of the repairs that need to
be made.
CHR. KANEALI`I-KLEINFELDER: And then we're going to contract at some
point to rebuild these facilities in whole?
MS. BAUMAN: That I can't answer, if it's in wholeAkertain components.
CHR KANEALI`I-KLEINFELDER: Director%awa, are you able to answer
that question? This is a very broad question hing on multiple places,
but it is also important to understand as a e p
MS. NAKAGAWA: Council Mem , no. don't have t ormation. I do
understand your questions as far hat is the scope of work ded in the
projects that is on our AOC ( ative er on Consent). can go
ahead and confirm for you with D ma how these cha es relate to
the requirement in the AOC.
CHR KANEALI`I- FELDER: Yes ease. If we're replacing roofs
on buildings we're goi g to' mar down in twoeplace as a brand new
facility then I hate to sa't, t i waste olyn
ut I understand if we
need to protect equipmen at's existin ,youlogical man brain is
kicking in.
Opair
A: As Robi entioned, these are more immediate needs. But
confirm for and explain the difference between this repair
anthe whole facili that will be happening at a future time.
CHI`I- DER: Thank you very much. I appreciate that.
're welcome.
CHR. KANEALI`-KLEINFELDER: Thank you, Ms. Bauman. My final
question is regarding the Aupuni Center sewer renovations. Ms. Kalua-Lewis,
good to she you.
Hi. Good to see you. Good afternoon.
R. KANEALI`I-KLEINFELDER: So I'm just checking on this and making
sure I'm understanding this. The original contract was $177,000.
MS. KALUA-LEWIS: Yes, correct.
CHR KANEALI`I-KLEINFELDER: And right now with the cumulative change
orders, the total is $436,000?
Page 8
FC-31
March 17, 2026
MS. KALUA-LEWIS: Yes. So cumulative change orders, we had an increase
with the additional scope of work that were added on.
CHR. KANEALI`I-KLEINFELDER: So when the job was bid on it was bid for
$177,000 to complete the project, but cumulatively we have paid $436,000 to date
for this project.
MS. KALUA-LEWIS: So this one actually didn't go forbid. This is a
consultant contract so the way that this procureme or 4s that we go off of the
professional services list and we select contract submit proposals.
CHR KANEALI`I-KLEINFELDER:
use a professional services contractor
MS. KALUA-LEWIS: The origi
CHR KANEALI`I
$436,000, two years later.
MS. KALUA-LEWI s
some additional scope
the original, I guess, ini 1
consulting and repair, the
one of them. There was a
checlegOt that constituted.
o let khrase that then. So we
tote wes for $177,000?
, yes.
Mposki. And noJw Kepaid
And I wouldNd
ok. I know they've added
5ed
ey werss when they looked into
at kird he need for this
itiona ork. I know planning was
at d and I would have to go and
fiUL,KANEALJ'I-KLEINFEL'VER_: Yes, please. Please send me the
in f ton on :hat exact�no
the ge orders covered and what elements were
sewn _ to the orfinal c and why the large amount of stuff because if
you look at this,i u jus,ad this first and you didn't read it in whole, it
looks like th a 20 percent decrease. That's only for the change order itself,
but the cumula o' ct has more than almost tripled.
MS. KALUA-LE S: Yeah. So this is supplemental number four, so we had
three sup mentals. So I can definitely go and look it over and then I can get
back to v on that.
Yes, please. Thank you, Ms. Kalua-Lewis.
-LEWIS: No problem.
CHR KANEALI`I-KLEINFELDER: Okay, thank you. Okay, Council
Members, seeing no further discussion, motion is on the floor to close file on
Communication 24.29. All in favor?
Page 9
FC-31
Vote on Comm. 24.29
Filed
The motion to close file on Comm. 24.29 was carried by
the following voice vote:
Ayes: Committee Members Hustace, Inaba,
Kagiwada, Kimball, Onishi, Villegas, and
Chair Kaneali `i-Kleinfelder — 7.
Noes: None.
Absent: Committee Members Galimba an
Kierkiewicz — 2.
Excused: None.
Comm. 24.30: REPORT OF CHANGE ORDERS AUTHOR
From Finance Director Diane Nakaga d dated Februa
the above report pursuant to Sectio 12.3 of the Hawai `i
March 17, 2026
ARY 16 — 31, 2026
L2026, transmitting
tv Code.
Vote on Comm. 24.30: Mr. Hustace moved to,.close file on Comm. 24.30.
Filed Seconded by Mr. Onishi an carried by t%4,following
voice vote:
nunlpu nF
RESOLUTIONS:
Res. 47
Members Hu Inaba,
mball, Onishi,
and
and
proceed to the next order of business,
D DIRECTS THE DIRECTOR OF FINANCE TO
D POSITION OF CERTAIN REAL PROPERTY BY
FIT ORGANIZATIONS FOR PERMANENT HOUSING
ie negotiation of six one-year leases with four one-year renewal
approximate annual cost of $10 for six residential properties to be
term permanent housing for underserved populations.
Reference: Comm.744.4
Intro. by: Council Member Kaneali`i-Kleinfelder (B/R)
Postponed: March 3, 2026
(Note: There is a motion by Council Member Inaba, seconded by Council
Member Kimball, to recommend adoption of Res. 475-26, as amended.)
CHR. KANEALI`I-KLEINFELDER: Council Member Inaba.
Page 10
FC-31
Motion to Postpone
March 17, 2026
MR. INABA: Yeah, I believe the request has been submitted by OHCD (Office
of Housing and Community Development) to postpone Resolution 475-26. So I'll
make the motion to do so until the April 7 Committee meeting.
Mr. Inaba moved to postpone Res. 475-26, Draft 2, to
April 7, 2026. Seconded by Mr. Onishi.
CHR. KANEALI`I-KLEINFELDER: Is there any di ion?
MR. INABA: Thank you. We do have some s re from OHCD that I believe
more time was needed to conduct research r di al review on this
resolution. So we're postponing to a certai ate, A to allow Housing to
work with Corporation Counsel in the im.hk
`I-KLEINFEL : Further discussion?
MS. KAGIWADA: Chair?
CHR KANEALI`I-ILEINFELDER: C Member Kagiwada.
MS. KAGIWADA: T We do have r we have the administrator
and members of her tea e seem like t on need to say anything
else, but I did want to let a kno are esent and available. I yield.
I`I-KLEINWER: Th you, Council Member Kagiwada.
t sta, I would e you to provide a brief background given that we
ers e who are ve 'nterested in the outcome of the situation.
`I
up.
Thank you.
At rs time, Housing Administrator Kehaulani M. Costa and
it Administrator Keiko Mercado came forward to address the
rs of the Committee.)
Hi. Housing Administrator Kehau Costa.
C . KANEALI`I-KLEINFELDER: Thank you, Administrator Costa. If you
uld just give us a high level summary so that people behind you feel that we're
being transparent about what's going on.
MS. COSTA: Absolutely, yeah. Thank you for your time; thank you for
testimony today. Thank you to the Council Members that have been able to meet
with us over the past week. We're requesting a postponement until April7a' to
compile the information that Council has requested. We've also asked
Page 11
FC-31
Vote on Motion
to Postpone:
(Approved)
Res. 480-26
March 17, 2026
Corporation Counsel to provide us with a legal memo with regards to the Federal
Fair Housing Act and Adults with Disabilities Act (ADA) and related laws just to
make sure that we are in compliance with those laws, that the direction that is
being given to us is in compliance with those federal laws.
CHR. KANEALI`I-KLEINFELDER: Okay. Thank you very much. I appreciate
that.
MS. COSTA: Thank you.
CHR KANEALI`I-KLEINFELDER: Than u. , so we have the motion
on the floor. All in favor?
The motion to postpone Res -2 ,Draft 2, to
April 7, 2026, was carrie the following voice vote.
Ayes: Committee Me us , aba,
Kagiwada, Kimbal , , Villegas, and
C air Kaneali `i-Klein — 7.
Noes: N
Absent: Co embers Galim
Kier wi
Excused: None.
AU THE PAY OF F OF LATER FISCAL YEARS TO
E R MULTI -YE AGREEMENT WITH NEOGOV FOR
SO WARE ENSING, M TENANCE, AND SUPPORT FOR THE
DEPA MENT OF HUMAN SOURCES
Authorizes the Ma or to ter ' o a three-year agreement with an approximate
$34,1 first year, $36,570 for the second year, and $39,230
to provide software licensing, maintenance, and support for the
s t and Examination Division.
Reference: Comm.756
Intr. by: Council Member Kaneali`i-Kleinfelder (B/R)
Page 12
FC-31
Vote on Res. 480-26
(Approved)
BILLS FOR
ORDINANCES:
Mr. Hustace moved to recommend adoption of
Res. 480-26. Seconded by Mr. Onishi and carried
by the following voice vote:
Ayes: Committee Members Hustace, Inaba,
Kagiwada, Kimball, Onishi, Villegas, and
Chair Kaneali `i-Kleinfelder — 7.
Noes: None.
Absent: Committee Members Galimba
Kierkiewicz — 2.
Excused: None.
The Chair directed the Committee to
Bills for Ordinances.
Bill 139: AMENDS ORDINANCE NO AS A
BUDGET OF THE COUNTY OF Al'
ENDING DUNE 30, 2026
Vote on Bill 139:
(Approved)
March 17, 2026
the nex r of business,
SIDED, THE O G
kkk THE FISCAL AR
Appropriates revenus in the Federal Gr Benefits Enrollment Center —
National Council on Aging account ($150, nd appropriates the same to the
Benefits Enrollment Center — National Counci account. Funds would
be used to help enroll NRefee:
neficiaries wh e limited income and
resources to access avi
Com 69
Council Member Kaneali `i-Kleinfelder (B/R)
,Zr.oved to reco mend passage of Bill 139 on
rst readin _ Seconded by Mr. Onishi and carried by the
voic vote:
ittee Members Hustace, Inaba,
iwada, Kimball, Onishi, Villegas, and
hair Kaneali `i-Kleinfelder — 7.
None.
Committee Members Galimba and
Kierkiewicz — 2.
None.
Page 13
FC-31
March 17, 2026
Bill 140: AMENDS ORDINANCE NO. 25-45, AS AMENDED, THE OPERATING
BUDGET OF THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR
ENDING DUNE 30, 2026
Appropriates revenues in the following accounts: Housing Choice Voucher —
Dolphin Bay ($23,912), Dolphin Bay Rental Income ($50,000), Department
Charges ($176,610), and Sundry Revenues Current— Dolphin Bay ($8); and
appropriates the same to the Housing Dolphin Bay accounts: Other Current
Expenses ($243,986) and Equipment ($6,700). Fund uld be used for
operating and maintenance activities.
Reference: Comm.77
Intr. by: Council Membe eali`i-Kleinfelder (B/R)
Motion on Approve: Mr. Hustace moved to reco end passage of Bill
first reading. Seconded b r. Inaba.
CHR. KANEALI`I-KLEINFELD y d* ion on the mea e? Council
Member Hustace.
MR. HUSTACE
us a little bit of
MS. KAGIWADA: The
t this time,
forty address t
s
s Bring if Housing could just give
n Ba u s here a little bit.
min n up.' trator Kehaulani M. Costa came
the Committee.)
Qreven
A: oha. Kehau Cd , Housing Administrator. Yes. We purchased
ve generating so we just need an appropriation for
is cois fiscal year.
A of these fundsso you're basically establishing a special
Dolph ay operating.
Yes.
ACE: And what are the departmental charges here that we're seeing?
not sure what specifically the departmental charges are.
Yeah. I'm going to have to get back to you.
(Note: At this time, Housing and Community Development Specialist Toi
Gary Wong came forward to address the members of the Committee.)
Page 14
FC-31
March 17, 2026
MR. WONG: Gary Wong, Office of Housing. The departmental charges, we
have two grants for Dolphin Bay. One is homeless and housing funds; one is
affordable housing production fund.
MR. HUSTACE: Okay. Thanks for the clarity on that. That's all I have for right
now. Thank you, Chair.
CHR. KANEALI`I-KLEINFELDER: Thank you. Cjg&il Member Onishi.
MR. ONISHI: Thank you, Chair. Can you exp little bit more in detail about
the grants of that homeless and housing fun
MR. WONG: Yes. The homeless and ho
Dolphin Bay Apartments now, we allocat
unhoused individuals and thatA
the
support the rental. And the ofhoi
improvement projects for the
MR. ONISHI: The
MR. WONG
MR. ONISHI: And so
units to
ess and
fund
Bay, we call it
Ference for
fund comes into
the one from our tier two?
VR�ONIS s money. So on that list that you guys provided us back then
—
I don't know, m%a ministrator Costa, you can answer that. But that list that
you f s provided ack then on where all that funding was going to be going,
Housing also had in your request in that list of nonprofits that was getting the
Can you repeat; what do you mean by nonprofit?
. ONISHI: I mean, well because we had applicants that you folks submitted to
that you folks awarded?
MR. WONG: Yes.
MR. ONISHI: Right. So were you folks on that list?
MR. WONG: I believe so.
Page 15
FC-31
March 17, 2026
MS. COSTA: Housing Administrator Kehau Costa. No. This is not a grant to a
nonprofit. These are direct funds that we are using administratively for rental
assistance for these units.
MR. ONISHI: Okay. So it's not the homeless and housing funding?
MS. COSTA: It is from the homeless and housing fund, but it is not from the
grant making portion of the homeless and housing fu
MR. ONISHI: So from that money that we get tier two, right, that's the
J�
funding you're talking about, right?
MS. COSTA: Yes.
MR. ONISHI: So you folks take onion of that for this cau
MS. COSTA: We administrativel
contracts and administrative progr
homeless and housin .
MR. ONISHI: Okay. kay. And so with thi
leasing to
in the process.
pe f those funds, P, into direct
Office of Housing manages for
folks are already
t Mark Development is in the
aren't collecting income?
So Dolphin Bay rent income of $50,156, so where does
NG: That is the tenant portion of the rent. Tenant portion. And on top
you see the housing choice voucher, right? We anticipate some of the
have housing choice vouchers, that's the subsidy.
MR. ONISHI: So that's anticipated?
MR. WONG: It's budgeted. It's a program that we've implemented.
MR. ONISHI: Okay. So but now, what if you don't hit that?
Page 16
FC-31
March 17, 2026
MR. WONG: I'm sorry.
MR. ONISHI: What if you don't get the $50,000?
MR. WONG: We will get that because that's the rate that is set for the 50 percent
AMI (Area Median Income) that is required by the Tier Two fund.
MR. ONISHI: Okay. Thanks. I yield.
CHR. KANEALI`I-KLEINFELDER: Further
just going to kind of summarize this in my b
1107, 0252, 0926, and 1140, those are reve
MR. WONG: Can you repeat that?
'I-KLEINFEIJIMBL The
1107, 0252, 0926, and 1140, those
MS. COSTA: Yes. Yes. 11N
MR. WONG: Yes.
CHR KANEALI`I-KLEINFELD ay. A
expenditure, so you're showing an even budget.
on on the bill? Okay. I'm
counts numbers ending in
accounts lis this bill,
rots_ correct?
the bottom one is your
`I-KLEINFEL . And you're creating these line items in the
CHR. ` EALIJI`°`L,EINFELDER: Okay. I understand what you're doing.
One thiat ca t my attention, you're showing the housing choice vouchers
we expelreceive this much and you're budgeting that much revenue that some
of the un#§ may be using the housing choice vouchers.
)NG: Yes. And in fact they are processing, half of the applicants have
choice vouchers.
CHR KANEALI`I-KLEINFELDER: Okay. Good. Okay, thank you.
Mr. Onishi, go ahead.
MR. ONISHI: Thank you. One last question. So the target for the tenants, are
you folks looking at families with children?
Page 17
FC-31
March 17, 2026
MR. WONG: Everyone who qualifies; individuals, families, unhoused
individuals, kupuna, anyone who qualifies. There's no specific target population
except the two units.
MR. ONISHI: Okay. And how are you folks getting this message out to those
individuals?
MR. WONG: The management agent has put 4osenonprofits
, like fliers, posting
on social media, online.
MR. ONISHI: Okay. You're not using any o that are reaching
out to these families that are living in their cars?
MR. WONG: Yes. I know that some of the nonprofits arf
communicating with different vaus nonprofit organizati
MR. ONISHI: Be
ones that work, I g
And so that would
I'm hoping that
the front line
We have been
do because I think they're the
;aliniz with these individuals.
to the management agent
those nonprofits that are dealing with housing,
QNIS ® ay. Thank you. I yield.
MS. JqWWADA10Fhair, Administrator Costa has something to add to that.
MS. CORM: Yes. I just wanted to confirm that is being done, Council Member
Onishi. r housing navigators within our nonprofit community are aware and
ve b aware that this property is coming online and leasing. It's also part of
rdable housing listing within our existing housing program at Office of
mg and Community Development. So it's been marketed pretty well since
t e acquisition of the property.
MR. ONISHI: Okay. Thank you.
CHR. KANEALI`I-KLEINFELDER: Thank you. Okay, final question. Was the
purchase price of the Dolphin Bay Hotel public information?
Page 18
FC-31
March 17, 2026
MR. WONG: $2.68 million.
CHR. KANEALI`I-KLEINFELDER:
$2.68 million?
MS. COSTA: Yes.
CHR KANEALI`I-KLEINFELDER:
Okay. And it's a County asset now?
MR. WONG: Yeah. We're obligated for 20 year p ce period. After
20 years, the County will own it outright.
CHR KANEALI`I-KLEINFELDER:
Oka And h ny individuals can this
building hold?
MR. WONG: They have a total
units; 13 studios, three edroom, and
one two -bedroom. One unit i
e as a s f unit. All units y equip
with a full kitchen and a bathroom.
CHR KANEALI`I-ILEINFELDER:
S 8 million total purchase price;
17 individuals about ';e housed.
MR. WONG: Indivi
`I-KLENFEL uals or families.
there aw like one -bedrooms and two -bedrooms.
C NEAL7 `I-KLEINFEL °;W. So a potential of even more than 17 people
or individuals being s &ed.
units, possibly more than 17 individuals. Yes.
CHR. `, EALIMMEINFELDER: Got it. That makes sense. Thank you. I
yield. n ay, t ink you, Mr. Wong. Thank you, Administrator Costa. With
that, seein 'no further discussion, we have a motion on the floor to approve and
forward 140 to Council with a favorable recommendation. All in favor?
Page 19
FC-31
Vote on Bill 140
(Approved)
Bill 141
March 17, 2026
The motion of recommend passage of Bill 140 on first
reading was carried by the following voice vote:
Ayes: Committee Members Hustace, Inaba,
Kagiwada, Kimball, Onishi, Villegas, and
Chair Kaneali `i-Kleinfelder — 7.
Noes: None.
Absent: Committee Members Galimba and
Kierkiewicz — 2.
Excused: None.
AMENDS ORDINANCE NO. 25-45, AS END E OPERATING
BUDGET OF THE COUNTY OF HA ` OR TH AL YEAR
Appropriates revenues in the foll ng accounts
($36,000), Department Charg 000), a
Kikaha ($18); and appropriates the to t
Other Current Expenses ($139,298) a In
used for operating a d maintenance acti
e: Comm.7
ouncil Me
Hale Kikah tal Income
Sundry Revenu
ent — Hale
kq�sing Hale Kik
a accounts:
,nt ($6,720). Funds
would be
i `i-Kleinfelder (B/R)
Motion on Approve: Mr. Hustace move recommend passage of Bill 141 on
ding. Secon by Mr. Onhi.
OftKANEAN'l-KLEINFELVER: Discussion on the bill? Mr. Wong, I have
a fo up qt4 ion. Same way ` is being broken down, so I appreciate the
County has owned this asset for decades.
CHR. `, EALIMMEINFELDER: Okay. Does the income from the property
offset tImpenselffor the property?
MR. W : I would say it is yet to be determined.
Okay.
We are working with Section 8 Division to bring in project based
vouchers.
CHR KANEALI`I-KLEINFELDER: Okay. What I'm driving at is return on
investment and the amount that I'm watching the County subsidize different
programs to address homelessness. So that's my intention in asking those
questions and I failed to do that on the previous one, but in understanding how
Page 20
FC-31
March 17, 2026
much we're subsidizing the homeless and houseless folks in our community and
what we're putting as far as tax money into this and what we're getting back out.
And I'm compiling this for my own information if you will so thank you. So,
we're not sure because we just started running this program in this facility?
MR. WONG: Yes.
CHR. KANEALI`I-KLEINFELDER: But we're
decades already.
MR. WONG: Yeah.
CHR KANEALI`I-KLEINFELDER:
information as far as your projected
MR. WONG: They are 23 mi at this
tenants that have project based you V
Housing) vouchers for the veterans an re
including the subsidies are $930 somethi $
the rest of the existing ten nts do not have
minimal because previously e Kikaha is co
homeless shelter as one c nt se agree
they're technically two di rent x M
concepts. Hale Kikaha is a n rm p
we separated'them and now are lookin to
that don't have ie housing ch ice voucher.
facility for a few
n you send me the
projecte ses?
ility and we hav t nine
eterans Affair upportive
payment standar The rent
944 a unit. $931 to $944. And
rs, and their rent have been
d ith West Hawaii
me e separated them because
a ey) and two different
t housing and not a shelter. So
how to set the rent with the folks
CHMKANEAIJ'I-KLEINFELI1W. And is there a program manager or is the
Coun the ro et ager?
Wk-WON e County asset manager, we recently RFP (Request for
Proposal) them e awarded the contract to a property management agent,
Mark rev lopme o was the only proposal. So they are currently managing
Hale Kika a.
CHR KANEALI`I-KLEINFELDER: And is that cost included in the bill that
u pro,,yjded us today?
Yes.
CHR KANEALI`I-KLEINFELDER: That's in the OCE (Other Current
Expenses), the equipment.
MR. WONG: OCE. Yes.
CHR KANEALI`I-KLEINFELDER: And can I ask what that cost was?
Page 21
FC-31
March 17, 2026
MR. WONG: Let me see. I have the breakdown. There are management fees
based on the percentage of the total rent collective. So as of now, it's pretty
minimal.
CHR. KANEALI`I-KLEINFELDER: Can you give me a ball park?
MR. WONG: I have to get back to you on that.
CHR KANEALI`I-KLEINFELDER: Okay.
MR. WONG: I know that come of the
start from five percent to eight percent.
only?
MR. WONG: Yeah. Managem
currently manage, they
management alone; management
Mr. Onishi.
0
Bay would be the same?
you very much, Mr. Wong.
rXTBIWir. So on that point, you're saying that this facility
while, could be like over ten years?
L Okay. And so by having this subcontracted to a property
they rent that you folks collect from this, the rent that they collect,
for all their expenses?
ONG: They will, yes. And then on top of that when the RFP goes out,
tIffs contract will also include funding from HHF, the homeless and housing fund
that support the case management and social services.
MR. ONISHI: So it cannot be where the rent that they're going to collect can
cover all their expenses, so that way the County doesn't have to subsidize any of
that.
Page 22
FC-31
March 17, 2026
MR. WONG: Yeah. The County shouldn't be subsidizing.
MR. ONISHI: But then you were mentioning that we might be or will be
providing homeless and housing funding.
MR. WONG: Yes. Because there is a case manager on site.
MR. ONISHI: So what I'm saying is can't the rent pAWr that person?
MR. WONG: I would say it's still too early to because we just took this
back about two months ago after years.
MR. ONISHI: So maybe in the future itnig be self -suable?
MR. WONG: It should be becau at's the goal of property ygement.
MR. ONISHI: Right. Correct. O Okay. T k you. I yiel
CHR. KANEALI`I-IrLEINFELDER: T ou. Okay. Seeing and hearing
nothing further, we have e motion on the o approve and forward Bill 141
to Council with a positive recommendation. A r.
Vote on Bill 141: The motion of rec men of Bil 41 on first
(Approved) reading was carrie t ollo ce vote:
AnCommittee embers Hustace, Inaba,
Kagiwada, ball, Onishi, Villegas, and
Chair Kaneali einfelder — 7.
C-Offilawmembers Galimba and
Kierkiewicz — 2.
ADJOURN There b ' no f er business on our agenda today, Chair Kaneali`i-Kleinfelder
MENT: adjourne e meeting at 4:40 p.m. Thank you very much.
Approved:
Mr. Matt Kaneali `i-Kleinfelder, Chair
Finance Committee
MK/tk
(Date)
Page 23