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HomeMy WebLinkAboutMIN FC 2026/05/04 2024-2026Committee on Finance 35" Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawaii May 4, 2026 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 12:49 p.m., in the Council Chambers, Kailua-Kona, by Mr. Matt Kaneali`i- Kleinfelder, Chair. ROLL CALL: Present: Mr. Matt Kaneali`i-Kleinfelder, Chair Mr. James E. Hustace, Vice Chair Ms. Michelle M. Galimba, Member Mr. Holeka Goro Inaba, Member Ms. Jenn Kagiwada, Member Ms. Ashley L. Kierkiewicz, Member (via videoconference from Hilo) Ms. Heather L. Kimball, Member Mr. Dennis "Fresh" Onishi, Member (via videoconference from Hilo) Ms. Rebecca Villegas, Member STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: (There were none.) COMMUNI- The Chair directed the Committee to proceed to the next order of Business, CATIONS: Communications. Comm. 24.32: REPORT OF CHANGE ORDERS AUTHORIZED: FEBRUARY 16 — 28.2026 From Finance Director Diane Nakagawa, dated April 14, 2026, transmitting the above report pursuant to Section 2-12.3 of the Hawaii County Code. Motion on Close File: Mr. Hustace moved to close file on Comm. 24.32. Seconded by Ms. Kagiwada. CHR. KANEALI`I-KLEINFELDER: Council Members, any discussion on the item on our agenda? MR. HUSTACE: Yes, Chair. CHR. KANEALI`I-KLEINFELDER: Council Member Hustace, go ahead. FC-35 May 4, 2026 MR. HUSTACE: Thank you, Chair. I have a question for Office of Housing on this matter, please. (Note: At this time, Housing and Development Specialist Michelle Hiraishi came forward to address the members of the Committee.) MS. HIRAISHI: Aloha, Councilman Hustace. This is Michelle Hiraishi, Office of Housing. MR. HUSTACE: Hello, Ms. Hiraishi. Good to see you. Thank you. Just a question on the Salvation Army contract there. This contract originally went out 2024, has there been annual amendments to that contract? MS. HIRAISHI: There has not been annual amendments. However, this is the third amendment. The first change order was to expand the existing program and increase the number of beds. The second change order was simply to extend the existing contract. And now this third change order is a final extension of the contract, which includes some funding. Just for your knowledge, this is the last contract extension we will do on this contract. This project has gone out through RFP (Request for Proposal), and the RFP is in process, and the contract is in process of signing. MR. HUSTACE: So the length of this is only extended for one month then, correct? MS. HIRAISHL• That's correct. MR. HUSTACE: And what is the purpose of the funds again? Sorry. I kind of missed hearing you on that one. MS. HIRAISHI: The second extension — MR. HUSTACE: The third one here. MS. HIRAISHI: Right. For the second contract change there was no funds added but there was an extension. So on this one we extended it one more month and had to add some funds for that final month. MR. HUSTACE: And what are the funds being used for? Sorry. MS. HIRAISHI: That's for staffing and for the program that includes the meals that are provided through that program, through the infrastructure, and then as I mentioned, the staffing. MR. HUSTACE: So it's really the first amendment that added the large majority of the funds. Page 2 irMIR May 4, 2026 MS. HIRAISHI: That's correct. That's correct. MR. HUSTACE: Okay. Okay. Thank you very much. Thanks, Chair. CHR. KANEALI`I-KLEINFELDER: Thank you. Council Members in Hilo? MS. KIERKIEWICZ: We're good, Chair. CHR. KANEALI`I-KLEINFELDER: Okay. Thank you. Okay, seeing no further discussion, motion is on the floor to close file on Communication 24.32. All in favor? Vote on Comm. 24.32: The motion of close file on Comm. 24.32 was carried by Filed the following voice vote: Ayes: Committee Members Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: Committee Member Galimba — 1. Excused: None. Comm. 24.33: REPORT OF CHANGE ORDERS AUTHORIZED: MARCH 1-15, 2026 From Finance Director Diane Nakagawa, dated April 15, 2026, transmitting the above report pursuant to Section 2-12.3 of the Hawaii County Code. Motion on Close File: Mr. Hustace moved to close file on Comm. 24.33. Seconded by Ms. Kagiwada. CHR. KANEALI`I-KLEINFELDER: Any discussion? Council Member Hustace. MR. HUSTACE: Thank you, Chair. I do have a question for Public Works regarding the Waiakea Uka Park expansion and improvements. (Note: At this time, Parks and Recreation Business Manager Charmaine Felipe came forward to address the members of the Committee.) MS. FELIPE: Good afternoon. Charmaine Felipe, Business Manager at Parks and Recreation. MR. HUSTACE: Thank you, Ms. Felipe. This project calls out Public Works. Is that for Waiakea Uka? MS. FELIPE: The contract gets routed through Public Works but it's actually a Parks and Recreation contract. Page 3 FC-35 May 4, 2026 MR. HUSTACE: So nothing's wrong with this listing here then, correct? MS. FELIPE: Correct. MR. HUSTACE: Okay. No problem. Thank you, Ms. Felipe. Just a question regarding —the purpose says it addresses additional hazmat testing, so really what did those results identify within that soil contamination? MS. FELIPE: Because the department was getting a lot of requests for private use of the soil that was dug up, we decided to get it tested before we let anyone take it and the test results were that it wasn't for use, that it had to be disposed of. MR. HUSTACE: And what is the proper disposal efforts that are taking place now? MS. FELIPE: It had to be taken to the West Hawaii landfill. MR. HUSTACE: And everything's been transported over there safely? MS. FELIPE: Yes. Yes. MR. HUSTACE: Okay. So this had to be discarded then? MS. FELIPE: Yes. MR. HUSTACE: Okay. Thank you very much. I appreciate that. Thank you, Chair. CHR. KANEALI`I-KLEINFELDER: Thank you. Any further discussion? Sorry, Charmaine. I have one follow up question. MS. FELIPE: Sure. CHR. KANEALI`I-KLEINFELDER: That was for the dirt that was excavated. Is the rest of the soil contaminated with whatever it's contaminated with? MS. FELIPE: No, it was topped off with the proper amount of covering so that whatever is beneath is not exposed. CHR. KANEALI`I-KLEINFELDER: What is it that's beneath? MS. FELIPE: Pardon me? CHR. KANEALI`I-KLEINFELDER: What is it? MS. FELIPE: Because it's an old plantation area, yes, it was arsenic. Page 4 FC-35 ! May 4, 2026 CHR. KANEALPI-KLEINFELDER: Beautiful. Got to love that donated plantation land they gave us for all our parks and schools. Really appreciate the big companies that left those for us to take of with no funding. Thank you very much, Charmaine. Appreciate it. MS. FELIPE: You're welcome. CHR. KANEALI`I-KLEINFELDER: Okay. Seeing no further discussion, we have a motion on the floor to close file on Communication 24.33. All in favor? Vote on Comm. 24.33: The motion of close file on Comm. 24.33 was carried by Filed the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 548-26: AWARDS FIVE STEWARDSHIP GRANTS FROM THE PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION MAINTENANCE FUND AS RECOMMENDED BY THE DIRECTOR OF FINANCE FOR THE FISCAL YEAR ENDING JUNE 30, 2027 Authorizes the Director of Finance to provide Public Access, Open Space, and Natural Resources Preservation Maintenance Fund Stewardship grants totaling $477,266.50 to four nonprofit organizations, pursuant to Section 10-16(h) of the Hawaii County Charter. Reference: Comm.860 Intr. by: Council Member Kdneali`i-Kleinfelder (B/R) Motion to Approve: Mr. Hustace moved to recommend adoption of Res. 548-26. Seconded by Ms. Villegas. CHR. KANEALI`I-KLEINFELDER: Any discussion? Council Member Kimball. MS. KIMBALL: Yes. Just a minor request of Mr. (Ben) Schapiro. When this resolution is heard in Council in two weeks, could you provide a communication that also identifies the entities that applied but did not receive an award? Just so that we have a complete public record around this program. Thank you. I yield, Chair. Page 5 FC-35 May 4, 2026 CHR. KANEALI`I-KLEINFELDER: Thank you. Council Member Kierkiewicz. MS. KIERKIEWICZ: Chair, I just wanted to note that Mr. Schapiro is in the audience and acknowledged the request from Council Member. Thank you. CHR. KANEALPI-KLEINFELDER: Thank you very much. Okay. Seeing no further discussion, motion is on the floor to approve and forward Resolution 548-26 to Council with a favorable recommendation. All in favor? Vote on Res. 548-26: The motion to recommend adoption of Res. 548-26 was (Approved) carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Res. 549-26: AUTHORIZES THE PAYMENT OF FUNDS FROM LATER FISCAL YEARS TO ENTER INTO A MULTI -YEAR HOUSING ASSISTANCE PAYMENT CONTRACT WITH THE PROPERTY MANAGER OF AN AFFORDABLE HOUSING PROJECT SELECTED BY THE OFFICE OF HOUSING AND COMMUNITY DEVELOPMENT FOR THE PROJECT -BASED VOUCHER PROGRAM Authorizes the Mayor to enter into a multi -year agreement to provide 29 vouchers for the Kino`ole Senior Residences proposed voucher project. The estimated annual cost of the agreement would be up to $550,000, with a term of up to 20 years. Reference: Comm.861 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Motion to Approve: Mr. Hustace moved to recommend adoption of Res. 549-26. Seconded by Ms. Galimba. CHR. KANEALI`I-KLEINFELDER: Council Members, discussion on the resolution? MR. ONISHI: Yes, Chair. CHR. KANEALI`I-KLEINFELDER: Council Member Onishi. MR. ONISHI: Is Housing there? CHR. KANEALI`I-KLEINFELDER: Negative. Page 6 FC-35 May 4, 2026 (Note: At this time, Existing Housing Division Manager Jade Iokepa came forward via Zoom to address the members of the Committee.) MS. IOKEPA: Aloha. Jade is here. Office of Housing. MR. ONISHI: Okay. Hi. You can introduce yourself. I'm sorry, what was your name again? MS. IOKEPA: Jade Iokepa, Existing Housing Division Manager, Office of Housing. MR. ONISHI: Okay. So this apartment building is next to my home. And I've been in discussion with the seniors there and also with your department about the problems that we were facing over there with the seniors from their management. I was told that Housing has nothing or any responsibility or jurisdiction to get involved with how the management is being run there. So now I see that we're going to be giving over $550,000, which I support that because our seniors there do need that, but if you guys are saying that we cannot support or help our seniors when they are in need over there then why are we having them stay there or why can't we locate those that are getting this subsidy to someplace better? MS. IOKEPA: So the seniors, if they are requesting to move, we absolutely can accommodate that. MR. ONISHI: Yeah. But the thing is, okay, it's a County property that's leased to a developer that built the facility, that hires a management to manage the apartment to oversee the seniors living there. Correct? MS. IOKEPA: So this property is actually owned by Kino`ole Senior Residences and HAPI, Hawaii Affordable Properties, Inc., is the property manager. MR. ONISHI: Right. MS. IOKEPA: This contract would be a 20-year contract so we can continue to provide — MR. ONISHI: With HAPI? MS. IOKEPA: It's actually with Kino`ole Senior Residences, is who the contract would be with and to continue to provide the project -based vouchers there for 29 project -based vouchers so we can pay a portion of the rent through the Section 8 subsidy. So this would be continuing the project -based vouchers in there. MR. ONISHI: You know, it's really frustrating to kind of hear what I'm hearing when we had discussions and Housing told me that it's not your guy's Page 7 FC-35 May 4, 2026 responsibility to help solve any of the problems. But then you're telling me that with this funding it helps HAPI to maintain the rents and so forth for them, right? MS. IOKEPA: So we would pay a portion of the rent just like other vouchers. MR. ONISHI: Right. I understand that. So we're providing them with funding for them to operate their business. But then we cannot say anything or we cannot even defend our seniors that are living at that facility when they face problems. You know, have you folks ever gone there to review or audit that apartment, that complex? MS. IOKEPA: Our department has not. We do operate based on the program side, the voucher side, with the families. So we continue to provide subsidies on the family's behalf, we help them pay a portion of rent. MR. ONISHI: Because even their safety, I mean, just the safety conditions at that facility is lacking. And we provide them $500,000 and we cannot even do anything to help protect them. I'm talking about our seniors there. I mean, it's kind of like, man, I'm getting so frustrated here. I know it's above you. And I know the seniors do need this subsidy to help them, right. So it's kind of like our, well, for me, my hands are tied because if I vote against this or I request my colleagues to go against this, then the seniors are going to get hurt. But then if we approve it, then the way the things are run at that apartment, the complex, is still going to be the same and they're going to continue to do the same thing over and over and nothing's going to happen. So, you know, Chair, right now I'll yield. Thank you. CHR. KANEALI`I-KLEINFELDER: Thank you, Mr. Onishi. Council Member Hustace. MR. HUSTACE: Thanks, Chair. Just a question regarding the agreement. Is this pretty standard for a term up to 20 years; has it ever shifted away from that 20 years; is that kind of the end goal? MS. IOKEPA: The standard is 20 years. MR. HUSTACE: And it really just states that this is an estimate per year. So there could be some adjustment over that 20-year span then? MS. IOKEPA: It's possible. But based on our projections it should be under $550,000. MR. HUSTACE: So that's to top limit there, $550,000. MS. IOKEPA: Correct. Page 8 FC-35 May 4, 2026 MR. HUSTACE: Okay. Thank you. CHR. KANEALI`I-KLEINFELDER: Thank you. Sorry, what is your name from Housing again? MS. IOKEPA: Jade Iokepa, Existing Housing Division Manager. CHR. KANEALI`I-KLEINFELDER: Thank you, Jade. What is included in the contract? MS. IOKEPA: The contract basically states that it's authorizing the mayor to enter into the 20-year contract. It would start August 1, 2027. The current contract expires July 31, 2027, and we would be able to continue to pay a portion of the rent on behalf of the participant in the Section 8 project -based voucher program. So it all depends on how much we're going to pay per tenant for that unit, for 29 units at Kino`ole Senior Residences. CHR. KANEALI`I-KLEINFELDER: So the $550,000 is for vouchers or for management. MS. IOKEPA: What we do is we project. It's for vouchers. So we project how much it could be up to. So based off of the tenant portions of rent per tenant, 29 vouchers per month, and we do it per year to calculate up to $550,000 per year. CHR. KANEALI`I-KLEINFELDER: Interesting. I thought I read this was for management of the — MS. IOKEPA: No. It's not for management. CHR. KANEALI°I-KLEINFELDER: Okay. Thank you for clarifying that. So the $550,000 is just straight vouchers for the residents who are living in these 29 units. Is that what you said? MS. IOKEPA: Correct. CHR. KANEALI`I-KLEINFELDER: Who manages the property currently? MS. IOKEPA: They go by HAPI. It's Hawaii Affordable Properties, Inc. CHR. KANEALI`I-KLEINFELDER: And is that done through a bid? MS. IOKEPA: Hawaii Affordable Properties, Inc. is done through Keith Kato's organization. CHR KANEALI`I-KLEINFELDER: What Mr. Onishi I think is touching on that is kind of getting to me is it sounds like the conditions there are not perhaps ideal Page 9 FC-35 May 4, 2026 or I'm not understanding something. But I definitely am picking up that there is something that OHCD (Office of Housing and Community Development) should be looking into on the property, maybe even regarding the management of, unless I misunderstood something. That's what I picked up. Do you have any thoughts on that? MS. IOKEPA: I would be happy to schedule a meeting with you, Mr. Onishi, to talk more about some of the feedback that you have received. CHR. KANEALI`I-KLEINFELDER: Thank you for that. But I do understand what Mr. Onishi is saying. This is voucher funding. But if we were to vote against it, they don't get the vouchers. There's no ability for you to use the resolution to become the contracting needs. But if he's not happy with it, what do we do then? Yeah. Maybe between here and there you two should touch bases to make sure everything is up to par on the facility for our seniors. Thank you for bringing that up, Mr. Onishi. MR. ONISHI: Thank you, Chair. CHR. KANEALI`I-KLEINFELDER: Anything further? Okay. Thank you, Jade, for being with us today. MS. IOKEPA: Thank you. CHR. KANEALI`I-KLEINFELDER: Okay, Council Members. We have the approval of Resolution 549-26 and forwarding the same resolution to Council with a favorable recommendation. All in favor? Vote on Res. 549-26: The motion to recommend adoption of Res. 549-26 was (Approved) carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. Page 10 FC-35 # May 4, 2026 Res. 550-26: AUTHORIZES THE PAYMENT OF FUNDS OF LATER FISCAL YEARS OF COST ITEMS ASSOCIATED WITH THE HAWAI`I FIRE FIGHTERS ASSOCIATION, BARGAINING UNIT 11, AND CERTAIN OTHER EMPLOYEES EXCLUDED FROM BARGAINING UNIT 11 FOR THE CONTRACT PERIOD BEGINNING JULY 1, 2025, AND ENDING JUNE 30 2029 The estimated costs over the four years of the new contract resulting from across-the-board increases would be $25,292,860. Reference: Comm.862 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Motion to Approve: Mr. Hustace moved to recommend adoption of Res. 550-26. Seconded by Ms. Kagiwada. CHR. KANEALI`I-KLEINFELDER: Any discussion? MS. KIERKIEWICZ: Chair? CHR. KANEALI`I-KLEINFELDER: Council Member Kierkiewicz. MS. KIERKIEWICZ: I want to disclose that my partner is a member of the Hawaii Fire Department so I will be once again recusing myself from the vote. Thank you. CHR. KANEALI`I-KLEINFELDER: Thank you very much for that. Any further discussion? Okay. I'm happy to lend some support to this. Thank you. With that, seeing no further discussion, motion is on the floor to forward Resolution 550-26 to Council with a favorable recommendation. All in favor? Vote on Res. 550-26: The motion to recommend adoption of Res. 550-26 was (Approved) carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 8. Noes: None. Absent: None. Excused: Committee Member Kierkiewicz —1. Page 11 FC-35 May 4, 2026 Res. 551-26: AUTHORIZES THE MAYOR TO ENTER INTO AN INTERGOVERNMENTAL AGREEMENT WITH THE STATE OF HAWAI`I, DEPARTMENT OF AGRICULTURE AND BIOSECURITY, TO RECEIVE A GRANT FOR THE COFFEE BERRY BORER AND COFFEE LEAF RUST PESTICIDE SUBSIDY PROGRAM Allows for the receipt of $150,000 of federally -derived funds to aid coffee growers in Kona and Ka`u by offsetting the cost of purchasing approved pesticides. Reference: Comm.863 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Vote on Res. 551-26: Mr. Hustace moved to recommend adoption of Res. 551-26. (Approved) Seconded by Mr. Inaba and carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Bill 153: AMENDS ORDINANCE NO. 25-45, AS AMENDED, THE OPERATING BUDGET OF THE COUNTY OF HAWAI`I FOR THE FISCAL YEAR ENDING JUNE 30 2026 Appropriates revenues in the State Grants — Coffee Berry Borer/Coffee Leaf Rust Pesticide Subsidy Program account ($150,000); and appropriates the same to the Coffee Berry Borer/Coffee Leaf Rust Pesticide Subsidy Program account. Funds would used to aid coffee growers in Kona and Ka`u by offsetting the cost of purchasing approved pesticides. Reference: Comm.863 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Page 12 FC-35 May 4, 2026 Vote on Bill 153: Mr. Hustace moved to recommend passage of Bill 153. (Approved) Seconded by Ms. Galimba and carried by the following voice vote: Ayes: Committee Members Galimba, Hustace, Inaba, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Kaneali`i-Kleinfelder — 9. Noes: None. Absent: None. Excused: None. ADJOURN- There being no further business on our agenda today, Chair Kdneali`i-Kleinfelder MENT: adjourned the meeting at 1:15 p.m. Thank you very much. Approved: Mr. tt Kdneali`i-Kleinfelde Chair (Date) Finance 6Qmmittee MK/tk Page 13