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HomeMy WebLinkAboutMIN COUNCIL 2026-06-04 2024-2026 Hawaii County Council 42nd Session Special Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii June 4, 2026 INVOCATION: Pastor Ian Tajon of Connect Point Church gave the morning's invocation. CALL TO The special meeting of the Hawaii County Council was called to order at ORDER: 9:02 a.m., in the Council Chambers, Hilo, by Mr. Holeka Goro Inaba, Chair. ROLL CALL: Present: Mr. Holeka Goro Inaba, Chair Mr. Dennis "Fresh" Onishi, Vice Chair Ms. Michelle M. Galimba, Member Mr. James E. Hustace, Member Ms. Jenn Kagiwada, Member Ms. Ashley L. Kierkiewicz, Member Ms. Heather L. Kimball, Member Ms. Rebecca Villegas, Member Absent& Excused: Mr. Matt Kaneali`i-Kleinfelder, Member PLEDGE OF The Chair directed the Council to the next order of business, Pledge of ALLEGIANCE: Allegiance. (At this time, County Clerk Jon Henricks led the Council in the Pledge of Allegiance.) PETITIONS, The Chair directed the Council to proceed to the next order of business, Petitions, MEMORIALS, Memorials, Certificates of Merit, and Expressions of Condolence. CERTIFICATES OF MERIT, AND (There were none.) EXPRESSIONS OF CONDOLENCE: STATEMENTS The Chair directed the Council to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: (There were none.) Hawaii County Council-42 June 4,2026 ORDER OF The Chair directed the Council to proceed to the next order of business, Order of THE DAY the Day (Second or Final Reading). (SECOND OR FINAL READING): Bill 135: ESTABLISHES AN OPERATING BUDGET FOR THE COUNTY OF HAWAI`I (Draft 3) FOR THE FISCAL YEAR JULY 1, 2026, TO JUNE 30, 2027 Draft 3 includes estimated revenues of$976,408,620 and appropriations of $975,980,388. Reference: Comm. 754.10 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Public Hearing: May 19, 2026 First Reading: May 21, 2026 and Comm. 754.11: From Council Member Jenn Kagiwada, dated May 27, 2026, transmitting a (Memo No. 1) proposed amendment to the General Fund revenue and expenditure accounts by increasing the Fund Balance from Previous Year in the amount of$25,000 and increasing the Animal Control-Other Current Expenses, Miscellaneous Materials and Supplies in the amount of$25,000 to add a new line item for Dangerous Dog Signage. ; and Comm. 754.12: From Council Member Holeka Goro Inaba, dated May 28, 2026, transmitting (Memo No. 2) proposed amendments to the amounts of the following revenue and expenditure accounts: 1) General Fund: Increases Real Property Taxes in the amount of $16,800,000, decreases Fund Balance from Previous Year in the amount of $16,422,000, increases Transfer to Public Access/Open Space Preservation Fund, Miscellaneous Charges in the amount of$336,000, and increases Transfer to Public Access/Open Space Preservation Maintenance Fund, Miscellaneous Charges in the amount of$42,000; 2)Public Access/Open Space Fund: Increases Transfer from General Fund in the amount of$336,000 and increases Public Access/Open Space Fund-Other Current Expenses, Miscellaneous Charges in the amount of$336,000; and 3) Public Access/Open Space Maintenance Fund: Increases Transfer from General Fund in the amount of$42,000 and increases Public Access/Open Space Maintenance, Miscellaneous Contractual Services in the amount of$42,000. (Note: Comms. 754.14 and 754.15, from Council Member James E. Hustace dated June 3 and 4, 2026, respectively, transmitting proposed amendments to Bill 135, Draft 3, were circulated.) Motion to Approve: Ms. Kierkiewicz moved to pass Bill 135, Draft 3, on second and final reading. Seconded by Mr. Hustace. Page 2 Hawaii County Council-42 June 4,2026 Motion to Amend: Ms. Kagiwada moved to amend Bill 135, Draft 3,with the contents of Comm. 754.11. Seconded by Ms. Galimba. CHR. INABA: Council Member Kagiwada. MS. KAGIWADA: Thank you, Chair. This is just to—we found out that with the State dangerous dog legislation that was passed in 2024, there's a requirement for Animal Control, if they're to designate a dog as dangerous that they must provide the signage for them. And they hadn't had the funding for that or the ability to do that until now. And so,just looking at providing that funding so that they can go ahead and do that. We have Acting Administrator Charyse Emmons here, and she can explain a little bit more. Ms. Emmons, will you please come up? (Note: At this time, Animal Control and Protection Specialist Charyse Emmons came forward to address the members of the Council.) MS. KAGIWADA: Thank you, Acting Administrator. If you would please just explain about the law briefly, and then maybe about the signage and the costs. MS. EMMONS: Aloha. Good morning. Thank you so much. Like you had mentioned, I'm CHR. INABA: Please introduce yourself for the record. Thank you. MS. EMMONS: So sorry. I'm Acting Administrator for Animal Control and Protection Agency Charyse Emmons. Like you had mentioned, under Hawaii Revised Statutes (Section) 711-1142, Subsection 1, we are required to place on the owner's premises a sign or signs provided by the animal control authority informing the public of the presence and dangerousness of the dangerous dog. We did create a mock-up as well of the sign, which I can provide. MS. KAGIWADA: It looks like this. Sorry, I didn't— MS. EMMONS: It will be much larger. I believe it's 11 by 14, is what we've created. MS. KAGIWADA: Thank you so much. So basically, yeah, we didn't want this to be a reason that we weren't basically following through with the State dangerous dog ability to cite people and get these dogs more under control in the community. So just looking for people's support. But if anybody has questions, Administrator or I can try to answer. CHR. INABA: Thank you. Vice Chair Onishi. Page 3 Hawaii County Council-42 June 4,2026 MR. ONISHI: Thank you, Chair. So the signs that you folks will be making will be for public use? MS. EMMONS: Yeah. We would be giving them to the public when we designate a dog as dangerous. It's required under MR. ONISHI: So State law. They just passed that law? MS. EMMONS: Most of it took effect July of last year. MR. ONISHI: Okay. And so I know you weren't here, but I guess, Council Members, did anybody track that law? I mean, now the State makes a law, puts the burden upon the County to being, I guess, the stewardship of getting these things done, which is, to me, not correct. Because, they tried this past session to do about shopping carts, and they were going to put the burden upon the Clerk's office being in charge of monitoring all these shopping carts that are on the streets. And so, that didn't pass. I just was wondering. Okay, thank you. But I wanted to bring up Finance Director. (Note: At this time, Finance Director Diane Nakagawa came forward to address the members of the Council.) MS. NAKAGAWA: Good morning. Diane Nakagawa, Finance Department. MR. ONISHI: Thank you, Director Nakagawa. In your present budget this fiscal year, what is their balance? Are they overspent, or they have a lot—okay, go. MS. NAKAGAWA: If you could just let me go grab my binder. MR. ONISHI: Yeah. Okay, thank you. MS. KAGIWADA: Chair, I can answer the earlier question while we're waiting. CHR. INABA: Okay, go ahead. MS. KAGIWADA: Okay. I just wanted to state that the State actually was kind of following on our legislation that we passed. We had passed a dangerous dog legislation here in this County, and they were following up on that. So I'm not sure about your statement about them asking us to pay for something through their bill, but just the history of it I just wanted to share. MR. ONISHI: Well, my thing is it's the requirement of the County being responsible to produce these signs for the public. That's what I'm saying. Page 4 Hawaii County Council-42 June 4,2026 MS. NAKAGAWA: In the department's current '26-'27 estimate, it is $4.4 million. The previous year was $4.5 million. In our actuals from '24-'25, it's $3.4 million. I will say the department has struggled a bit with filling some of their positions, and the department can definitely elaborate in those areas. In contractual services, they have been underspent in like our miscellaneous contractuals, specifically. So, of today, I don't have the current expenditures to date as of today with me right now. We can certainly do that. But maybe the department would like to speak to expenditures,just kind of where you've been. I know a lot of it has been on—there's been an effort to increase, to purchase more things that's needed as this department was fairly new and a startup. It's taken a little bit to get to where we need to be. So spending has taken a bit for equipment, for personnel. But maybe you can talk about the progress. MS. EMMONS: Yeah, that's correct. We have been increasing our spending, especially when it comes to personal protective equipment, increasing tools that can keep the staff safe not only in the shelter but out in the field. We've increased our purchasing of different equipment that can be used in the shelter to communicate between staff because the facility is quite large, the east side facility. So it's only just been, I think, within the last six months that we've actually really started to understand the equipment we need and start purchasing it. MR. ONISHI: So what you're saying is that prior to you getting in, the previous Administrator wasn't purchasing all these required equipment for the staff? MS. EMMONS: I can't speak specifically to what he was MR. ONISHI: But if you look at the budget, and like you said you're purchasing all this now within the last six months. So you're saying that prior to you coming in, they weren't doing their job and they weren't, I guess, equipping the staff with the proper equipment that they needed, the protections. MS. NAKAGAWA: Maybe I can just add a little bit and reemphasize that since the startup of Animal Control, the transition into the County, that has been a significant effort for us in terms, again, of establishing what personnel is required to run this type of facility. It is new for the County, and there has been a lot of, you know, trying to figure things out and adjustments being made to make sure that the positions are correct. And I think there's been an initial focus on making sure that we have the right staffing in place. And I still think that is a challenge for this team to be staffed appropriately. So that was the top priority. But I will say, over the last year, they have looked at the equipment that was necessary. And part of that takes time, too, to figure out what they need in all these different facilities. The facilities themselves have different challenges, as we have grown to understand that. And the staffing—so some of the purchases, Page 5 Hawaii County Council-42 June 4,2026 as you look at their staffing efforts over the last couple of years, we didn't purchase everything at once. We didn't have the staff to use the equipment. So some of that just didn't happen because the need for some vehicles or the need for more things had to come with the staffing that was appropriate to utilize these things. So it's been a gradual progression, and I still think it's a work in progress to get to where we need to be. MR. ONISHI: Well, I just look at it where I guess the planning of creating this department wasn't really thought of, like the planning of how to create it, how to make it function, right, wasn't really thought—was just like a rushed thing where, okay, we're going to go as we need or whatever until we see that's needed. And that's not of your doing, right. It's just how this thing all got created. But then now, because, we talked about DEM (Department of Environmental Management) cutting their budget because they're not using all their funds and they're not—like their positions, they're not filled. So how many positions total that you folks have and how many are filled? MS. EMMONS: We're budgeted for 48 positions. Currently, we have either 30 or 31 filled, but we do have multiple in recruitment right now. MR. ONISHI: Yeah, okay. So some of those funds, couldn't they be used right now for this fiscal year to be used to make those signs? MS. NAKAGAWA: The funds that we have budgeted for their salaries and wages, I think it's critical that they continue to recruit and are able to staff appropriately. MR. ONISHI: Right, okay. MS. NAKAGAWA: Do I think it's all going to happen at once? Probably not. But I would hate for them to not have the budgeted salaries for these positions, because one of the things that we have seen they're struggling with is the ability to resource the things that they need to do. And that is staffing. Staffing's first. So I would not want to reduce their salaries and wages. MR. ONISHI: I'm not looking at un-funding, but I'm just saying that from whatever funds that they had that's not going to be spent by the end of the fiscal year, they could use that to help pay for these signs. Is that possible, Director? MS. NAKAGAWA: In the current year? MR. ONISHI: Yes. MS. NAKAGAWA: We are in the first week of June. To be able to purchase anything at this moment is very late in our fiscal year. So, for example, P-cards Page 6 Hawaii County Council-42 June 4,2026 (purchasing cards) are done; you cannot purchase anything on a P-card as of the end of May. To go through procurement takes time. It would be highly doubtful that the department would be able to spend anything. MR. ONISHI: I guess why I brought it up is just that this could have been done earlier if they had the extra funding to purchase these signs. Right? MS. NAKAGAWA: If there was a need, theyI mean, that's something that the—any department can always look at the timing of purchases. MR. ONISHI: Because the law got passed last year, July? MS. EMMONS: Yes. Correct. MR. ONISHI: And so, what was the timeline for the counties to have these signs made up? MS. EMMONS: These laws took effect before I stepped into this position, so I don't know what happened before as far as the research and figuring out how much it was going to cost, and how many we would need on average. I don't know. All I know is now we're trying to get on the right path to be in line with those State laws, because they do supersede our County code. And in order to do that, as it's listed in the State law, we have to provide those signs. MR. ONISHI: Right. And so, that's why hearing it now, we're almost one year later, after the State law passed. And so, if anything had happened in between when the law passed till now, County could have been liable. Well, I just want to see how this could have been worked out earlier, getting the signs done prior. I'm not putting the finger on you and so forth. It's just, yeah, okay. Thank you very much. I yield. CHR. INABA: Thank you. Any other discussion? Council Member Hustace. MR. HUSTACE: Thank you, Chair. Thank you, Administrator. Just a question about the logistics of the signs. I wanted to go back to that just for a moment. So the department produces the signs. And then, what is the next step after that? You're giving them out to community members, or the department is installing them on these properties? MS. EMMONS: Likely, we would actually be the ones that would need to install it. Because otherwise, if we just give it to someone, there's the possibility they're not going to put it up. And granted, there are MR. HUSTACE: Because you mentioned earlier just—if I'm not mistaken, you said earlier just giving it to the property. So I wasn't sure that your team is actually installing these signs on the property. Page 7 Hawaii County Council-42 June 4,2026 MS. EMMONS: By State law, we're providing them. In conversations that I've had with our team MR. HUSTACE: Okay, yeah, because you used"providing." So you're actually installing them on the property then. MS. EMMONS: We're looking into it. Because, the last thing we want to do is give people these things that are required by State law and then they don't use them, but we haven't made a formal decision. Like I said, "likely"we would be installing them, but I am working to determine where our responsibility lies in this, if it is strictly what the State law says or if we should also be installing them to ensure that they are visible. MR. HUSTACE: Okay, so there's been some determination made about a property, that this site has a dangerous dog on property. Correct? MS. EMMONS: Mm-hmm. MR. HUSTACE: And so then, your team would then, as you figure this out, would then be the responsible party to install it on that person's property. Do you have to keep checking on that sign every now and then? Maybe that individual could be removing that sign. MS. EMMONS: We are required, under the same set of State laws, to perform checks. "Compliance checks" is what we call them. This State law doesn't define how frequently. So that's also up to us for interpretation. But yes, for three years after a dog is designated as dangerous, we have to do compliance checks. MR. HUSTACE: And where does that designation come from originally? MS. EMMONS: We as Animal Control, we can designate a dog as dangerous. The laws themselves are quite complicated, so we're also working with the Prosecutor's office, Corp. (Corporation) Counsel, and HPD (Hawai`i Police Department) to determine who all is responsible for every specific piece. But as far as providing signs, that one's very clear; it says Animal Control (inaudible). MR. HUSTACE: Okay. I appreciate this. I'm just trying to think about more of the logistics side of—the department is producing the sign. If you determine that you are installing it, then we install it. Just not sure how receptive that homeowner or property owner will be to having signs on their property. I'm not sure what that will look like at the end of the day. Yeah. Page 8 Hawaii County Council-42 June 4,2026 MS. EMMONS: We are actually working on what's called a dangerous dog designation form. So it is a legal document where it provides all of those requirements of the owner in writing, so that they know what they're held accountable for. MR. HUSTACE: Okay, thank you. Just appreciate walking through kind of the steps and understanding the logistics of this. Thank you, Administrator. Thanks, Chair. CHR. INABA: Any other discussion? Vice Chair Onishi. MR. ONISHI: Thank you, Chair. Just to follow up on that part. So, when the State law passed, weren't there guidelines that the counties had to follow of what's required? MS. EMMONS: I don't know what conversations were had between different parties. As far as I know, from my perspective, we weren't part of the conversation. Animal Control was not part of the conversation with these laws. If those conversations happened with the former Administrator, I, unfortunately, don't know. But for us, they just kind of passed, and we were expected to comply with them. But like I said, right now we're still learning how to interpret them and get everything in place. MR. ONISHI: Okay. Can I get Corporation Counsel to come up? This is very interesting, that's why. It's going to be a year that the law had passed, and we haven't been in compliance. (Note: At this time, Corporation Counsel Renee Schoen came forward to address the members of the Council.) MS. SCHOEN: Good morning. Renee Schoen, Corporation Counsel. The statute that the Administrator is speaking of regarding the requirement for signs is actually (Hawai`i Revised Statutes Section) 711-1142. And the title of that section is "Legal requirements of owner." Okay, so it puts the burden on the owner to do all of these things whenever their dog is declared dangerous. But embedded in that is the County's responsibility to provide signage to the owner. In terms of logistics, I think that's what we are working with the Prosecutor's office and our office and Animal Control as to how that all plays out. I mean, like she said, we don't want to just give them the sign and then they're not posting it. MR. ONISHI: But what about the law? What does it state? You said that the owner of the dog would be responsible, right? Page 9 Hawaii County Council-42 June 4,2026 MS. SCHOEN: Right. It says that the owner will place on the owner's premise a sign or signs provided by the animal control authority informing the public of the presence of a dangerous dog. MR. ONISHI: So, once Animal Control determines this dog is vicious, dangerous, then we could provide them a sign? Or we have to? MS. SCHOEN: We have to. MR. ONISHI: Okay. So we provide them the sign. It's up to the owner to post it. MS. SCHOEN: Correct. I mean, if you strictly read this, right, it would place the burden on the owner. But I think what the Director is saying is that there is that balance too. We want to ensure that the public is really aware. MR. ONISHI: Right. Yeah, I understand but the problem is we're short on manpower. So now, it's another burden that they're going to have to do, but also monitoring, like Councilman Hustace mentioned, monitoring and making sure that the owner doesn't take it down. Right? So we're already shorthanded, and now you've got another extra duty, how it's going to work out. MS. EMMONS: The unfortunate thing with this is that the State laws don't care how many staff we have. We have to do it. MR. ONISHI: No, I understand. No, yeah. But it's just that we've got to follow the law, right, yeah. And then, so—and we're already one year behind. MS. EMMONS: Yeah. I've already been speaking with my team. They're aware of it. We actually do compliance checks already for different court cases. So this isn't actually entirely unheard of. It's just a longer process. MR. ONISHI: Right. And then, as Corporation Counsel mentioned, I guess with the law, the way it's stated, Animal Control would just need to provide the owner with the sign, and they're responsible to post it within what the law states. MS. EMMONS: If we go strictly black and white by what the law says, yeah, absolutely, that's our minimum requirement. But given how much publicity there is around dangerous dog cases and the fact that we're trying to be much more proactive instead of reactive, we want to make sure we're doing as much as (inaudible). MR. ONISHI: No, I understand that, but I'm just looking at you don't have enough manpower. And then the thing is, what if they don't have a fence? Then you're going to have to put up a post with the sign? Page 10 Hawaii County Council-42 June 4,2026 MS. EMMONS: I think it just says it has to be someplace visible. So if we get to that situation, then we improvise. It's what we do all the time. We get creative. MR. ONISHI: Okay. Thanks, I yield. CHR. INABA: Thank you. All thoseactually, we'll do a roll call vote please, Mr. Clerk. Vote on Motion to The motion to amend Bill 135, Draft 3, with the contents of Amend: Comm. 754.11 was carried by the following roll call vote: (Approved) Ayes: Council Members Galimba, Hustace, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba— 8. Noes: None. Absent: Council Member Kaneali`i-Kleinfelder— 1. Excused: None. Motion to Amend: Ms. Villegas moved to amend Bill 135, Draft 3, with the contents of Comm. 754.12. Seconded by Mr. Onishi. CHR. INABA: This amendment was worked on with the Finance Department and adjusts the PONC (Public Access, Open Space, and Natural Resources Preservation Commission) and PONC maintenance funds for the upcoming fiscal year based on the real property taxes. If anyone has questions, feel free to call on them. Any discussion? MS. KIMBALL: I had a question. CHR. INABA: Yes, Council Member Kimball. MS. KIMBALL: Yes, to the Finance Department,just want clarity that the PONC maintenance funds in particular are only eligible to be used on properties that the County owns that were purchased through the PONC program. MS. NAKAGAWA: Diane Nakagawa, Finance Department. Yes, that is correct. MS. KIMBALL: Okay. So, with other parcels owned by the County or EO'd (executive ordered)to the County, is the maintenance of those then assigned to the Finance Department, the Property Management Division? Or where do the resources come to manage those properties? MS. NAKAGAWA: I would love to say that we are absolutely coordinated on all of it, but the fact is that there are properties that are managed by different departments, and then there is some funding that is within Property Management. And that is one of the things we are trying to get a handle of with Property Page 11 Hawaii County Council-42 June 4,2026 Management, our new Property Manager, to look at all of the County-owned properties and to take a look at any maintenance needs that are required and the funding that's required. So there are properties that are within the departments that are maintained. There are some that are within Property Management. And the goal is to make sure that we have that all under one comprehensive list, and then can make future decisions on whether or not if we bring it all into one. Our Property Management team is pretty small. So we'd have to kind of take a look at that. And quite frankly, some of the properties that are managed by other departments, they have the staff and ability to do so that we don't in Finance. MS. KIMBALL: Chair, I want to have a deeper discussion with Finance about this, but I'll save it until we get to the main budget issues because I don't think it's pertinent to the amendment. But thank you, Director. CHR. INABA: Okay. Any other discussion on this amendment? Seeing none, all those in favor of amending Bill 135, Draft 3 as amended, with Communication 754.12 please say "aye." Vote on Motion to The motion to amend Bill 135, Draft 3, with the contents of Amend: Comm. 754.12 was carried by the following voice vote: (Approved) Ayes: Council Members Galimba, Hustace, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba— 8. Noes: None. Absent: Council Member Kaneali`i-Kleinfelder— 1. Excused: None. Motion to Amend: Mr. Hustace moved to amend Bill 135, Draft 3, with the contents of Comm. 754.14. Seconded by Mr. Onishi. CHR. INABA: Council Member Hustace. MR. HUSTACE: Thank you, Chair. Just providing an opportunity to amend the budget here. Working in coordination with the Department of Public Works. They reached out to my office. They received a State grant just recently and wanted to program this in the budget for a contract position with a Safe Routes to School Program Coordinator. So I'll leave it there for now, and I'd welcome up our DPW (Department of Public Works) team, if they wanted to share a little bit insight into the program here. (Note: At this time, Civil Engineer Alan "Keone" Thompson, Public Works Department, came forward to address the members of the Council.) Page 12 Hawaii County Council-42 June 4,2026 MR. HUSTACE: Thank you, Mr. Thompson. MR. THOMPSON: Good morning, Council Members. Keone Thompson, Engineering Chief. This is an existing contract position that was funded previously, the last three years, through the Transportation Alternatives Program and that grant has expired. And so now, we sought another route to fund this position, which we got through the State Safe Routes to School grant. And it's a hundred percent funded through the State. And so, this will allow us to continue with the Safe Routes to School coordinator position. MR. HUSTACE: Thank you, Mr. Thompson. Thank you, Chair. CHR. INABA: All right, all those in favor of further amending Bill 135, Draft 3, with the contents of Communication 754.14,please say "aye." Vote on Motion to The motion to amend Bill 135, Draft 3, with the contents of Amend: Comm. 754.14 was carried by the following voice vote: (Approved) Ayes: Council Members Galimba, Hustace, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba— 8. Noes: None. Absent: Council Member Kaneali`i-Kleinfelder— 1. Excused: None. Motion to Amend: Mr. Hustace moved to amend Bill 135, Draft 3, with the contents of Comm. 754.15. Seconded by Mr. Onishi. CHR. INABA: Council Member Hustace. MR. HUSTACE: Thank you, Chair. This is a request to transfer funds from the Fund Balance to our capital projects, a direct transfer there of$2 million. Last year, we transferred $30 million to our capital projects. And this year, preceding this amendment here, we've transferred $15 million, or proposing to transfer $15 million. So definitely a decline in what we're proposing to work on some of our capital projects. I present this with you for consideration just regarding the number of other capital projects we have on the books. As you've known and you've seen in the last hearing, I presented a couple of projects from District 9, but our list for capital projects is lengthy. And we really have a concerted effort for our wastewater projects, but we have other projects that I think we need to tackle as well. So this would give the Administration just a little bit more to direct towards capital projects around the island, not targeting any specific project but really just working on that project list and kind of trying to tackle things on the list. So we're not taking on that debt in other areas, but really directing funds to our capital projects. Page 13 Hawaii County Council-42 June 4,2026 And I know you all have projects across the island. Really seeking that geographic equity for capital projects. But want to provide that opportunity. Thank you for the consideration. CHR. INABA: Vice Chair Onishi. MR. ONISHI: Thank you, Chair. Finance Director? You can introduce yourself. MS. NAKAGAWA: Diane Nakagawa, Finance Department. MR. ONISHI: Thank you. I just wanted to ask. There must have been a reason why you folks reduced it, this coming budget, compared to last year's one. Right? Do you want to explain why the reduction? MS. NAKAGAWA: Sure. So we have spent a tremendous amount of time pushing our CIP (Capital Improvement Project) forward, and that is with our CIP Manager, the Office of the Mayor, with the departments, reviewing all of the priority projects and really getting a handle on what projects can be done, the prioritization, looking at trying to get to the funded CIP even in—maybe not in (inaudible) but in actual practice. So, when we looked at the 30 and the 45, of course there are many—sorry, the 30 and the 15—the projects that we have, there's still a need for funding way beyond that. But we also are looking at the departments' capacity to complete these projects. And with what we had outlined for the next couple of years, this is where we felt was appropriate at the time in terms of what we can get done, but also recognizing the fact that this is a transfer from Fund Balance, and we are trying to be very responsible with our reserves. So just balancing the needs of capital projects being done, the need for reserves, the need for debt service, and looking at what we can do, that was where we thought would be appropriate. Is it exact? No. That is kind of where we felt we could do. MR. ONISHI: And it does make sense where, as the Administration, you folks review the departments and seeing for the next fiscal year if they're capable of getting these projects done. Right? MS. NAKAGAWA: Of course. I mean, we continue to hear about resources as kind of a big issue in being able to get things completed. So we want to be realistic in the funding that was transferred. Working with the departments, looking at timelines from procurement to also just managing projects to what can be done. MR. ONISHI: Correct. And that makes sense. Thank you very much for that information. Page 14 Hawaii County Council-42 June 4,2026 MS. NAKAGAWA: You're welcome. MR. ONISHI: I yield. CHR. INABA: Council Member Kagiwada. MS. KAGIWADA: Thank you. Just a quick follow up to that, Director. I'm hearing you say that a lot of this had to do with the ability of the County to just take on and complete more projects in the next fiscal year by adding $2 million to the capital for this purpose. Do we think we can do $2 million more of work within the next year? It's not program so I'm not really sure. If that means it would be one more project or if it would be ten more small projects, I'm not really sure. Do we have the ability to do the work, I guess that's what I'm hearing you say is part of the decision-making around this. MS. NAKAGAWA: Sure. So it's not an easy yes or no. There would need to again, we've been very thoughtful on spending a lot of time evaluating the projects and priorities, timelines, and what can be done. We're still actively working through the next couple of years. Our CIP manager is making sure that, working with the departments, what does that look like in terms of completion. We would have to go ahead and take a look at the list. Now, $2 million, depending on what project—could be one project, could be a partial project, could be—it just depends on what's on the list. It could be doable. We just need to take a look at what's on the list already. There are other things to take into consideration. A lot of our projects are also coming in a lot higher than our estimates. MS. KAGIWADA: Meaning that this might not even provide funding for additional projects. It might only MS. NAKAGAWA: It's a consideration, right? I mean, it's a consideration that we're seeing projects come in higher than we expected. So we just have to look—when we talk about our priorities and what we're moving forward to, it's a little bit of a moving target. As we go down the list, as we've all seen, some of them have come in a lot higher, so we have to kind of make some adjustments to those prioritized projects. MS. KAGIWADA: Are you able to say what's at the top of the list? MS. NAKAGAWA: I don't have it in front of me. "Top of the list" is a little different to me than just the priority of projects. We're happy to go through some of those priority projects. Like I said, we've spent an enormous amount of time with the bigger departments as a start. So DEM, DPW, and Parks. So we have a fairly good handle of all of those projects. I wouldn't say there's one"top of the list." There are priority projects in all those departments. Page 15 Hawaii County Council-42 June 4,2026 MS. KAGIWADA: Okay. Thank you. To the proposer, I get it and it makes a lot of sense to want to do this. It is a little—not knowing where it's going and what it's going to be used for in such a tight area of budgeting and prioritizing for us, it makes it a little challenging for me, especially because we could have brought in more revenue and then this would have felt a lot more comfortable. But we decided not to do that. I guess I would kind of like to know what this is going towards. Is it going to make up the difference of projects that are already in the works and paying for a higher amount that they're coming in at, or is it to work on something? I don't know. I have a little bit of a hard time with just the very general $2 million and we don't know what exactly it's for. I would love to hear more if other people have things to say. I yield. CHR. INABA: Council Member Galimba. MS. GALIMBA: Thank you. It is a little strange to just kind of move money around without a reason. That being said, I can understand that, yes, I'm sure projects are coming in higher than expected. And I guess the other part of it for me is, could you explain if we don't manage to spend this extra $2 million because of the restraints on personnel, etcetera, what happens to that fund at the end of the year, that money? MS. NAKAGAWA: So the transfer to CIP will allow it to stay within the CIP. MS. GALIMBA: To the next year or indefinitely. I see. Okay. MS. NAKAGAWA: So there is some flexibility. I do understand the request to know where it's going exactly. But I can offer up that you can see on the CIP list, and as I've reiterated—and I apologize. I can go grab a list in the meantime of those projects that we're looking on with these departments. But I can tell you that the list far outweighs the availability of funds. Our CIP appropriation is $375 million. We will continue to do the same process, I guess, with the funds that are available, and that is work with the departments and prioritize these projects, and continue to work them through as our resources allow us to do, and make adjustments where we need to. MS. GALIMBA: I want to ask about like the practice. As you're getting towards the end of the year, and there wasn't enough appropriated towards CIP for that year, do you come in and ask for more funding for a particular project for that year? MS. NAKAGAWA: We could come in and ask for an increase in an appropriation. Page 16 Hawaii County Council-42 June 4,2026 MS. GALIMBA: Okay, thank you. MS. NAKAGAWA: You're welcome. CHR. INABA: Council Member Kagiwada. MS. KAGIWADA: Just a last thing. I'm just wondering where this request—I'll just ask the introducer. Was this just something that you thought of, or did a department or somebody else come to you to ask for this? CHR. INABA: Council Member Hustace. MR. HUSTACE: Thanks, Chair. This is from me. This is from me personally. Because, as I mentioned before, the appropriations that I put on the capital budget last year and even this year, this is kind of to help tackle and move some of these projects forward. I wanted to come in at a higher figure. This is definitely a conservative number for me in trying to help with some of the projects on the list. Knowing that we are tight in different areas, I wanted to come at a higher figure but I did pull back to just $2 million, which is significant in itself. But given the number of projects that sit on the capital budget and sit and sit and lapse and sit, I wanted to have some additional funds that the Administration could move forward on some of these projects. Speaking for District 9, and I know you can all speak for yourselves in the districts you represent, there are projects that you also want to see move forward beyond the wastewater projects. I know those are critical things that we are beholden to cover and take care of, but that's—there are many other projects. I know you all have other projects that you want to see done for the communities. So this was just my attempt to give the Administration a little bit more flexibility to tackle additional projects. CHR. INABA: Vice Chair Onishi. MR. ONISHI: Director, can you come back? Introduce yourself again. MS. NAKAGAWA: Diane Nakagawa, Finance Department. MR. ONISHI: Thank you. So when I was on the Council previously, what the Council did is we appropriated funds for certain projects. And we voted on it, the Council, and it was up to Administration to decide if they wanted to, I guess, move forward on those appropriations. I mean, that's an option that we could look at. Right? Page 17 Hawaii County Council-42 June 4,2026 MS. NAKAGAWA: Yes. That is what we are doing with the CIP. We are looking at those projects. And if Council approves that, that provides us with the appropriation to move forward. So, yes. Correct. The first step is always looking at those projects in the CIP and Council authorizing the appropriation. MR. ONISHI: But then also, the Council could initiate, right? Because, that's what we did in the past. We had projects that Council Members wanted, and so we made an amount with different projects on it listed. And then, we passed it and we gave it to the Administration. But it was up to the Administration to decide which projects they would use, or what they were going to do. So that's an option that could be done. Thank you, I yield. CHR. INABA: Alrighty, we'll take a roll call vote on Communication 754.15. Vote on Motion to The motion to amend Bill 135, Draft 3, with the contents of Amend: Comm. 754.15 was carried by the following roll call vote: (Approved) Ayes: Council Members Hustace, Kierkiewicz, Kimball, Villegas, and Chair Inaba—5. Noes: Council Members Galimba, Kagiwada, and Onishi —3. Absent: Council Member Kaneali`i-Kleinfelder— 1. Excused: None. CHR. INABA: All right. I believe that brings us to the end of our amendments for the operating budget. Council Member Kimball, did you have discussion? MS. KIMBALL: Yes. If I may ask Finance Director and Deputy Director? CHR. INABA: Sorry, real quick, Council Member Kimball. Being that this is the final reading of the bill, do we need to waive our rules since we amended? MR. HENRICKS: No. The rules make an exemption for the budget. CHR. INABA: Okay, thank you. Go ahead, Council Member Kimball. MS. KIMBALL: Thank you. Something that is, I won't really say it's an emerging issue but it's come to a crisis in some areas, is County-owned properties or properties that are EO'd to the County that are not being maintained, are not secured, and are resulting in some disruptive actions—and I know we've spoken about some of these in the past, but in particular I want to make note of the parcel that is just makai of the post office in Honoka`a. This is, for my colleagues, an 80-acre parcel that we have. We are one of 40 owners on the parcel, and in addition, there are more than $250,000 owed in back taxes on this property. Page 18 Hawaii County Council-42 June 4,2026 And yet, because of the ownership complications,we cannot apparently get clear title to it. This is the location where a number of the fires were started last year in Honoka`a. There's a preschool right next door to it. Most recently, there have been gunshots heard in the area. There's still a homeless encampment there. I know I've spoken with you about this before, about our ability to get a clear title on it, to secure it in some way so that we can trespass people on it since we do have those fee simple rights. I bring it up now because I want to know where the funding needs to be to get something done for this property. But that's not the only one. There's an additional one by our water facility up in Ahualoa that is now experiencing similar problems. There's an encampment on it. There are gunshots happening in the area. I won't say this is constrained to my district. I think there are more in my district than many others because of some of these properties being given to the County through the process of the dissolution of the sugarcane plantations. We need to find a way to do better to get clear title so that we can deal with these properties, but also in the interim secure them. I had some conversations with the Fire Department looking at legislation around wildfire safety. And one of the key things that was brought up to me is the County-owned parcels and how many of them are just covered in guinea grass, fuel load is high, and there are kuleana already. So that's why I brought up the question, and I know we're deliberating about the Charter amendment with the PONC funds, but we need to be responsible for these properties that we own, whether or not they're fire hazards or present other hazards. So I'd like to—maybe you could elaborate in more detail since it's more appropriate, what is happening within the Finance Department to plan around these properties that we own and actually support securing them, maintaining them, and really protecting public health and safety. I cannot have people continuing to reach out to my office and say, "We need help up here," and not get anything done. So, yes. MS. NAKAGAWA: Diane Nakagawa, Finance Department. We do share, definitely, in your concern and prioritizing making sure that our County properties are properly maintained and taken care of. It is something that we have talked about a lot over the last year. I will say as I spoke of before, Property Management, as a division within Finance, is working towards right now being able to identify all these properties. Now, they are in our system. Some of these properties are assigned to different departments, so there's an assignment. And what is happening is, the departments that are assigned at the time to the projects are kind of taking the lead in what maintenance needs to be done. We do recognize that having our system that way could definitely be improved, and we need to be more coordinated in that approach. Whether or not it Page 19 Hawaii County Council-42 June 4,2026 transitions into Property Management is a difficult decision due to just the size and effort that would be needed. But I think where we, as Finance, can come in is to be able to have that kind of overall oversight approach and be able to provide that information and update on where these properties are kind of led or held. And the other aspect of that, that you mentioned definitely for Finance, would be to see if the appropriate budgets are there in the departments to be able to maintain that. So I think,just as we're doing with CIP, kind of having that bigger approach and being able to just help guide and bring it all together is where we are with Finance. There's a very limited number of properties mostly in, right there in PONC, that Finance will guide, even in terms of the leases and those spaces. There are some in departments, and there are some in Property Management as well. So we do recognize the need to make sure, one, that we can identify all of it, we can see where it's going, and where the funding should be placed. But right now, it is in different departments who have kind of acquired it or been the lead department at the time that the property was acquired. MS. KIMBALL: I don't want to come across as attacking you guys, because I know this isn't your responsibility, but how come Real Property Tax doesn't know that? How comeI can go to the statewide GIS (Geographic Information System) platform and pull out publicly-owned properties and get a list of properties and the TMKs (tax map keys) that are owned by the County and the State and DHHL (Department of Hawaiian Home Lands). I can go onto the Real Property Tax search and find our properties. That seems like we should have that information pretty easily accessible. I don't understand why that's not already well-documented. (Note: At this time, Deputy Finance Director Malia Kekai came forward to address the members of the Council.) MS. KEKAI: Malia Kekai, Finance. It's not that we don't have that information. It's just that over the years, who's responsible for what has kind of gotten muddy in the County. And so that's what we are, as Property Management, trying to clean up, is like really, really going, like, because sometimes you get the "Oh, no, they're doing that." Right? So the role that we're trying to take is kind of just like a coordinated role of, okay—especially like the one that you spoke of, right. That one's just legally complicated. And so, that's taking multiple agencies, not just Property Management. It's Corp. Counsel. It's RPT (Real Property Tax). It's a lot of different—and Police and Fire and everybody needs to be involved in that kind of thing. Those ones are a Page 20 Hawaii County Council-42 June 4,2026 little bit more unique in the sense that legal rights to property are very strong in Hawaii. So we'll continue to work through those things, not saying we're throwing up our hands and just giving up. But I think that's really what it is, is it's not that we don't know which properties we're supposed to be maintaining, but figuring out what is the best agency and the efficiency to it. Because sometimes it's just like, "Oh, yeah, they're doing it,"but are they the right agency to be doing it? Like, should it be Parks or should it be DPW, and what is the more efficient way and cost-effective way for the County to be doing it? That's kind of the effort that we're taking. MS. KIMBALL: I can appreciate that from like a back-end logistical standpoint. I can tell you the County could care less which department—the constituents could care less which department owns it. In their mind, the County is responsible for it. I'm at a point of desperation with that particular property. We have talked about it. We've talked about it with Corporation Counsel, like how do we get at least some abilityI mean, we have the right to secure it. So we should at least be doing that. But the last thing that I want to have happen is for something to happen to those kids in that preschool right next door. And you have random shots being fired. You have fires being started. As much as I appreciate—if I may have some leeway, Chair—the need to understand what's most effective, what's most efficient, which department should be responsible, the public doesn't care. These are our properties and we need to be doing something for them. So my question in relationship to the budget here today is, do we need more money to hire somebody in the County to do those title searches for us, which seems to be the problem with this particular property, and getting clear title? Do we need more money for maintenance in another area, whether it's the departments or in the Finance Department? Like, how do we get this done today instead of tomorrow for some of these properties? My constituents are genuinely concerned for their safety, and I don't think we can just ignore that anymore. And again, I'm not trying to attack you two folks, but like I said, I'm in a place of desperation and I just need to see something happen from the Administration. MS. NAKAGAWA: Agree. Explaining what we're doing does not I do understand it is the County's responsibility to maintain these properties. We are in agreement. Explaining the process gets us to be able to effectively get to that maintenance. So that is the process that we're going through, and that's kind of why we were explaining. But I do hear you. We understand. We share the same "It is our responsibility." And that recognition is what is pushing us to do the things to get to—we are still a large organization. There are these procedural steps that we have to go through in order to get that done, and that is what we're working on. Page 21 Hawaii County Council-42 June 4,2026 We have increased a little bit in Property Management that we can talk about to be able to do these types of things in our funding as well, but we haven't yet identified an additional number or need yet to—the departments haven't identified any request for increased funding in those areas. MS. KEKAI: Yeah, I would just add I think we have a sufficient amount for title reports and stuff. We did bump that a little bit, knowing that everything's a little bit more expensive in the sense title reports are being more common these days, and then also surveys and appraisals and such. So we did, I believe, budget sufficiently to address this property and others. CHR. INABA: Council Member Villegas and then Council Member Hustace. MS. SCHOEN: Just real quick. Renee Schoen, Corporation Counsel. I just wanted to assure you that the Mayor's office has been reaching out to my office, and we are taking steps to—the title piece is a whole other thing. But immediately, we're looking at trying to clear the property. And so, we're taking steps to notify the current co-owners of the property before we go in and try to clear the area. CHR. INABA: Council Member Villegas. MS. VILLEGAS: Thank you, Council Member Kimball, for speaking up so passionately for your community. That's a seriously concerning issue. There are a number of issues in my district as well. I suppose I just wanted to take this moment to acknowledge you, as leaders in Finance sitting here, that you inherited a system of historic systemic dysfunction. There is no "the County." There are the people in the positions at the time and the decisions being made. And unfortunately, where we are today is because of decisions made in the past, and negligence in some ways to actually effectively and efficiently upgrade our systems, which is something you guys have been working on just on the numbers side and the accounting side to get us into the 21st century. And I am heartened, while it's going to continue to take time for us to get there. Just as an example, when I first got into office, there was no concurrent list of all the parks in our County on one spreadsheet. And that just seems archaic, that we could be at the scale of where we are and to not have had that kind of tracking and management. There's a responsibility for next rounds of leadership to inherit something that's functional and sets people up for success. And while you're enduring what I see as just an onslaught, I want to commend you on your capacity, tenacity, and endurance for having to go back to the building blocks. We can't fix this until we get the system to understand even what's there, where it came from, who own—all those things—who are the players. And I am heartened for the future of our County to continue under Page 22 Hawaii County Council-42 June 4,2026 leadership from amazing women as yourself who are going back to the building blocks to ensure that the foundations are secure and the information is accurate so that we can move forward. I mean, we would all like to see it happen faster. We'd all like—but you have capacity as humans with what you can do in certain time periods, not to mention being—you're a hub in the cogs of this huge machine. But please continue. Don't get burnt out. Take care of yourselves. It's a heavy lift, but you really are bringing us into the 21st century in so many realms and arenas. And it provides me, as I term out, with hope for future Council Members and our districts that the systems will be in place, and that systemic historic dysfunction will be remedied so that we can adequately, appropriately, with good conscience manage and steward not only our lands and our infrastructure and our finances, but this County as a whole. So just my two cents as you get to the, kind of, close of this budget season, that I see you once again and recognize you have to go back to figure out what happened in order to move forward in a more productive capacity. So thank you. I yield. CHR. INABA: Council Member Hustace. MR. HUSTACE: Thank you, Chair. Thank you, Council Member Kimball, for mentioning and bringing up that property. Very well aware of that parcel, and we've talked about it at length at different times in the heart of Honoka`a there. So definitely some challenges with that property. I would definitely like to know and understand more about the maintenance of some of our parcels as well, because in, for example, Waikoloa Village, we have right in the middle in a residential sector we have a property that's County-owned. Has clear title but we've never maintained it. And there have been fires on that property too. I am curious to learn more about how we're tackling those properties that don't have the legal challenges, but who's responsible and really what's the work we're doing there. So thank you for adding this to the conversation. CHR. INABA: Council Member Galimba. MS. GALIMBA: Thank you. I just wanted to piggyback on what Council Member Villegas said. Thank you to the Finance leadership. You guys are amazing and, yeah. I know you guys work extra hard to make it all work for us. It's probably a very Ka`u thing to do, but we had a similar thing happen out there. There was a road that was a problem. Twenty people owned it, including the County. And the County just, because they have to do things by the book, could not do the things that needed to get done. So a private landowner with extra energy brought the community together and just got it done. I'm not going to say where it was. Anyway, it was—yeah, cowboy up! Get that backhoe in there and—all right. Page 23 Hawaii County Council-42 June 4,2026 CHR. INABA: All those in favor of approving Bill 135, Draft 3, as amended, please say "aye." Vote on Bill 135: The motion to pass Bill 135, Draft 3, as amended to Draft 4 Draft 4, on second and final reading was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba— 8. Noes: None. Absent: Council Member Kaneali`i-Kleinfelder— 1. Excused: None. Bill 136: RELATES TO PUBLIC IMPROVEMENTS AND FINANCING THEREOF FOR (Draft 3) THE FISCAL YEAR JULY 1, 2026, TO JUNE 30, 2027 Draft 3 requires a total appropriation of$380,200,000, of which $55,700,000 are intended to be funded by Federal Grants, $23,000,000 to be funded by State Grants, $292,500,000 to be funded in whole or part by bonds, $8,500,000 to be funded by private funds, and $500,000 to be funded by the Public Access, Open Space, and Natural Resources Preservation Maintenance Fund. Reference: Comm. 755.9 Intr. by: Council Member Kaneali`i-Kleinfelder (B/R) Public Hearing: May 19, 2026 First Reading: May 21, 2026 and Comm. 755.10: From Council Member James E. Hustace, dated May 27, 2026, transmitting a (Memo No. 1) proposed amendment to the Spencer Kalani Schulte District Park New Community Center/Shelter and Improvements project by adding an appropriation in the amount of$7 million and to replace the Project Data/Financial Impact Statement form with a new form to increase the project cost and adjust the funding sources and amounts. Motion to Approve: Mr. Hustace moved to pass Bill 136, Draft 3, on second and final reading. Seconded by Mr. Onishi. Motion to Amend: Mr. Hustace moved to amend Bill 136, Draft 3, with the contents of Comm. 755.10. Seconded by Ms. Kierkiewicz. CHR. INABA: Council Member Hustace. MR. HUSTACE: Thank you, Chair. This project sits in the capital budget's Draft 3. The number allocations in there aren't reflective of the commitment from our State legislators, so this attempts to change and update to reflect accordingly for this project in Waimea, the Kalani Schutte District Park, with the evacuation Page 24 Hawaii County Council-42 June 4,2026 center/community shelter there. Previously, the figure there for the State CIP showed $7.5 million. After their budget, they committed $5 million. So this amendment here adjusts that figure to show accurate designation there, as well as the County's commitment. So the State funds are contingent on the County's equal commitment there. So I have added in for the County's portion of $7 million there. So beyond the five,just for a little bit of coverage. Thank you. CHR. INABA: All those in favor of amending Bill 136, Draft 3, with the contents of Communication 755.10,please say "aye." Vote on Motion to The motion to amend Bill 136, Draft 3, with the contents of Amend: Comm. 755.10 was carried by the following voice vote: (Approved) Ayes: Council Members Galimba, Hustace, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba— 8. Noes: None. Absent: Council Member Kaneali`i-Kleinfelder— 1. Excused: None. Vote on Bill 136: The motion to pass Bill 136, Draft 3, as amended to Draft 4 Draft 4, on second and final reading was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba— 8. Noes: None. Absent: Council Member Kaneali`i-Kleinfelder— 1. Excused: None. OTHER The Chair directed the Council to proceed to the next order of business, Other BUSINESS: Business. (There were none.) ANNOUNCE- The Chair directed the Council to proceed to the next order of business, MENTS: Announcements. (Note: At this time, Council Members and County Clerk Henricks made announcements regarding community events, activities, and other unofficial business.) Page 25 Hawaii County Council-42 June 4,2026 ADJOURN- There being no further business, Chair Inaba adjourned the meeting at 10:17 a.m. MENT: Council Approval: P 1 6 2026 CO JH/dg Page 26