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HomeMy WebLinkAboutMIN COUNCIL 2026-07-23 2024-2026 Hawaii County Council 451b Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawaii July 23, 2026 INVOCATION: Kahu Kealoha Ka`opua of Calvary Community Church in Kona gave the morning's invocation. CALL TO The regular meeting of the Hawaii County Council was called to order at ORDER: 9:04 a.m., in the Council Chambers, Kailua-Kona, 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 Mr. Matt Kaneali`i-Kleinfelder, Member Ms. Ashley L. Kierkiewicz, Member Ms. Heather L. Kimball, Member Ms. Rebecca Villegas, 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 (Note: At this time, Mr. Inaba presented the June 2026 Haweo Award to Detective EXPRESSIONS OF John Kari of the Hawaii Police Department.) CONDOLENCE: Recess: At 9:16 a.m., the Chair called for a recess. Reconvene: The meeting reconvened at 9:20 a.m. Hawaii County Council-45 July 23,2026 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: The following individuals registered to speak and came forward when called by the Chair: Susan Dursin: Bill 165, Draft 2 (Comm. 915.5), in opposition. Brenda Ford: Bill 165, Draft 2 (Comm. 915.5), in opposition. Cory Harden: Bill 165, Draft 2 (Comm. 915.5), comment. (see Comm. 915.9) Amedeo Markoff: Bill 125 (Comm. 709); and Bill 165, Draft 2 (Comm. 915.5), in support. Dane Kealoha: Res. 595-26 (Comm. 945), in support. (representing Hawaii Land Trust) Timothy Rowan: Res. 607-26 (Comm. 966); (representing Black Sands Beach Res. 608-26 (Comm. 967); Property Owners Association Bill 125 (Comm. 709); and Malama O Puna) Bill 126, Draft 3 (Comm. 710.6); and Bill 165, Draft 2 (Comm. 915.5), in support. Jessica Wilkes: Res. 607-26 (Comm. 966), in support. (representing Black Sands Beach Property Owners Association and Malama O Puna) Eileen O'Hara: Res. 607-26 (Comm. 966); (representing Malama O Puna) Res. 608-26 (Comm. 967); Bill 125 (Comm. 709); Bill 126, Draft 3 (Comm. 710.6); and Bill 165, Draft 2 (Comm. 915.5), in support. Sammie Stanbro: Bill 165, Draft 2 (Comm. 915.5), comment. APPROVAL The Chair directed the Council to proceed to the next order of business, Approval OF MINUTES: of Minutes. Chair Inaba announced that the Minutes of May 5, 2026, were approved. REPORTS: The Chair directed the Council to proceed to the next order of business, Reports. Page 2 Hawaii County Council-45 July 23,2026 GOEAC-144 NOMINATION OF SHAWNA KAULUKUKUI TO THE HAWAI`I COUNTY (Comm. 946): CULTURAL RESOURCES COMMISSION Vote on Ms. Kierkiewicz moved to adopt Governmental Operations GOEAC-144: and External Affairs Committee Report No. 144. Seconded (Adopted) by Mr. Hustace and carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. GOEAC-145 NOMINATION OF JONATHAN ZEICHNER TO THE HAMAKUA (Comm. 947): COMMUNITY DEVELOPMENT PLAN ACTION COMMITTEE Requires Council Confirmation by: August 1, 2026 (Section 13-4(k), Hawai`i County Charter) Vote on Ms. Kierkiewicz moved to adopt Governmental Operations GOEAC-145: and External Affairs Committee Report No. 145. Seconded (Adopted) by Ms. Kimball and carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. ORDER OF The Chair directed the Council to proceed to the next order of business, Order of RESOLUTIONS: Resolutions. Res. 594-26: AUTHORIZES THE MAYOR TO ENTER INTO A COOPERATIVE SERVICE AGREEMENT WITH THE UNITED STATES DEPARTMENT OF AGRICULTURE, ANIMAL AND PLANT HEALTH INSPECTION SERVICE, WILDLIFE SERVICES, RELATING TO A WILDLIFE DAMAGE MANAGEMENT PROGRAM FOR THE HILO SOLID WASTE AND WASTEWATER TREATMENT FACILITIES Reference: Comm. 944 Intr. by: Council Member Kagiwada(B/R) Approve: GOEAC-146 Page 3 Hawaii County Council-45 July 23,2026 Vote on Res. 594-26: Ms. Kagiwada moved to adopt Res. 594-26 and (Adopted) Governmental Operations and External Affairs Committee Report No. 146. Seconded by Mr. Hustace and carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Res. 595-26: AUTHORIZES THE MAYOR TO ENTER INTO AN INTERGOVERNMENTAL AGREEMENT WITH THE UNITED STATES DEPARTMENT OF AGRICULTURE, NATURAL RESOURCES CONSERVATION SERVICE, FOR COST SHARING TO PURCHASE A CONSERVATION EASEMENT FOR THE KEALOHA FAMILY LO`I IDENTIFIED AS TAX MAP KEYS: 5-2-009:025 AND 5-2-009:026 THROUGH THE PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION PROGRAM Allows for the receipt of federally-derived matching funds for the acquisition of the Kealoha Family Lo`i conservation easement authorized by Resolution 513-26. Reference: Comm. 945 Intr. by: Council Member Kagiwada(B/R) Approve: GOEAC-147 Vote on Res. 595-26: Ms. Kagiwada moved to adopt Res. 595-26 and (Adopted) Governmental Operations and External Affairs Committee Report No. 147. Seconded by Mr. Hustace and carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Page 4 Hawaii County Council-45 July 23,2026 Res. 606-26: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO GRASSROOTS COMMUNITY DEVELOPMENT GROUP FOR EXPENSES RELATING TO THE 4THELOVE FESTIVAL Transfers $5,500 from the Clerk-Council Services—Contingency Relief account (Council District 5); and credits to the Department of Liquor Control, Public Programs account. Reference: Comm. 965 Intr. by: Council Member Kaneali`i-Kleinfelder Motion to Approve: Mr. Kaneali`i-Kleinfelder moved to adopt Res. 606-26. Seconded by Ms. Kierkiewicz. CHR. INABA: Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: A brief mahalo to Ms. Trina Nahm-Mijo, who is absolutely amazing, and for her age quite energetic. She puts on some serious dance moves at these festivals she's throwing. So I just appreciate Ms. Trina. Thank you. CHR. INABA: Thank you. All those in favor of approving Resolution 606-26, please say "aye." Vote on Res. 606-26: The motion to adopt Res. 606-26 was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Res. 607-26: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO MALAMA O PUNA FOR THE 2ND ANNUAL SMOKE IT UP FESTIVAL Transfers $5,000 from the Clerk-Council Services—Contingency Relief account (Council District 4); and credits to the Department of Research and Development, Agriculture Other Current Expenses account. Reference: Comm. 966 Intr. by: Council Member Kierkiewicz Page 5 Hawaii County Council-45 July 23,2026 (Note: Comm. 966.1, from Council Member Ashley L. Kierkiewicz dated July 22, 2026, transmitting proposed amendments to Res. 607-26, was circulated.) Motion to Approve: Ms. Kierkiewicz moved to adopt Res. 607-26. Seconded by Mr. Kaneali`i-Kleinfelder. CHR. INABA: Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you. This particular festival grew out of a research project around feral pig populations in Puna and ways in which we can take that liability and turn it into an asset and increase food security and nourish our communities. It's catalyzed a lot of work around grant-making and establishing a community kitchen in Pahoa. And so this particular event raises awareness about all the great work that's happening by Malama O Puna and community partners to deal with those pesky backyard pigs. We actually had to move the date of the festival, Chair. So at this time, I'd like to amend this resolution with Communication 966.1. Motion to Amend: Ms. Kierkiewicz moved to amend Res. 607-26 with the contents of Comm. 966.1. Seconded by Mr. Onishi. MS. KIERKIEWICZ: Thank you. This swaps out the exhibit. The event is no longer taking place this Saturday; actually, being moved to Saturday, November 14a'. Same venue in Pahoa. Looking for everyone's support on this. Thank you. CHR. INABA: Thank you. Any discussion on the amendment? Seeing none, all those in favor of amending Resolution 607 with the contents of Communication 966.1,please say "aye." Vote on Motion to The motion to amend Res. 607-26 with the contents of Amend: Comm. 966.1 was carried by the following voice vote: (Approved) Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Page 6 Hawaii County Council-45 July 23,2026 Vote on Motion to Ms. Kierkiewicz moved to suspend Council Rule 23 to Suspend Council waive the holdover for the substantive amendment of Rules: Res. 607-26. Seconded by Mr. Onishi and carried by the (Approved) following roll call vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Onishi, Villegas, and Chair Inaba— 8. Noes: Council Member Kimball— 1. Absent: None. Excused: None. (Note: Ms. Villegas voted'kanalua" then "aye.") Vote on Res. 607-26: The motion to adopt Res. 607-26, as amended to Draft 2, Draft 2 was carried by the following voice vote: (Adopted) Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Res. 608-26: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO KELI`IPIO-KUAMO`O FOUNDATION, INC., FOR A KIPAEPAE CEREMONY HONORING THE PRESERVATION OF HONOLULU LANDING Transfers $2,500 from the Clerk-Council Services—Contingency Relief account (Council District 4); and credits to the Department of Liquor Control, Public Programs account. Reference: Comm. 967 Intr. by: Council Member Kierkiewicz Motion to Approve: Ms. Kierkiewicz moved to adopt Res. 608-26. Seconded by Mr. Hustace. MS. KIERKIEWICZ: Thank you, Chair. I'm so grateful to the Administration for making it a priority to acquire Honolulu Landing. It was a property that's been on the PONC (Public Access, Open Space, and Natural Resources Preservation Commission) list for many years. The original resolution was introduced by then Council Member Emily Naeole, and I was grateful to add a bit Page 7 Hawaii County Council-45 July 23,2026 more urgency. When this property was listed for sale on the market, the Administration worked very swiftly to acquire it. So we've been working with lineal descendants of the area. Lehua Kaulukukui reached out to talk about hosting a kipaepae ceremony in October. So this funding will help support that community celebration. So I appreciate the collaboration of community, Mayor Alameda and his team, and our office for making this happen. Looking for everyone's support. Thank you. I yield. CHR. INABA: Thank you. All those in favor of approving Resolution 608-26, please say "aye." Vote on Res. 608-26: The motion to adopt Res. 608-26 was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. BILLS FOR The Chair directed the Council to proceed to the next order of business, Bills for ORDINANCES Ordinances (First Reading). (FIRST READING): Page 8 Hawaii County Council-45 July 23,2026 Bill 168: REPEALS ORDINANCE NOS. 19-38, 09-50, 09-49, 06-138, 06-137, 95-118, 92-36, 90-10, 86-49, 533 (1980), AND 594 (1973) AND AMENDS CHAPTER 25, ARTICLE 8, SECTION 25-8-3 (NORTH KONA ZONING MAP) AND SECTION 25-8-5 (KAILUA URBAN ZONING MAP), OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), BY CHANGING THE DISTRICT CLASSIFICATION FROM VILLAGE COMMERCIAL—7,500 SQUARE FEET (CV-7.5) AND MULTIPLE-FAMILY RESIDENTIAL—2,500 SQUARE FEET (RM-2.5) TO DOUBLE-FAMILY RESIDENTIAL—3,750 SQUARE FEET (RD-3.75) AND AGRICULTURAL—FIVE ACRES (A-5A) AT HIENALOLI 4TH, 5TH, AND 6TH, NORTH KONA, HAWAI`I, COVERED BY TAX MAP KEY: 7-5-010:013 (Planning Director Initiated) (Area: 6.467 acres) The Leeward Planning Commission forwards its favorable recommendation to revert the current zoning of 3.331 acres from Village Commercial to Double- Family Residential and 3.227 acres from Multiple-Family Residential to Unplanned zoning district. This property is located on the north side of Hualalai Road, approximately 1,000 feet east of its intersection with Kuakini Highway, Hienaloli 4t' and 5a', North Kona. Reference: Comm. 937 Intr. by: Council Member Kimball (B/R) Approve: LAAC-43 and Comm. 937.2: From Council Member Heather L. Kimball, dated July 7, 2026, transmitting proposed amendments to Bill 168. (Note: Comm. 937.4, from Council Member Holeka Goro Inaba dated July 20, 2026, transmitting proposed amendments to Bill 168, was circulated.) Motion to Approve: Ms. Kimball moved to pass Bill 168 on first reading and adopt Legislative Approvals and Acquisitions Committee Report No. 43. Seconded by Ms. Galimba. Motion to Amend: Ms. Villegas moved to amend Bill 168 with the contents of Comm. 937.4. Seconded by Ms. Kierkiewicz. CHR. INABA: Council Member Villegas. MS. VILLEGAS: Thank you, Chair Inaba, for taking the initiative to put this amendment in, which would requireI mean, this is an interesting circumstance in that we're downzoning. But we don't want to lose the opportunity for affordable housing and the requirements that come along with that. I don't know if you'd call it a downzoning, but usually things go back to ag (agriculture). And instead, it's going back to different zoning. So I'm in full support of there being the requirement of affordable housing to be taken into consideration with this. I yield. Page 9 Hawaii County Council-45 July 23,2026 CHR. INABA: Thank you. Vice Chair Onishi. MR. ONISHI: Thank you, Chair. Can I get Planning Department and Corporation Counsel to the table? Was Jean Campbell in Hilo? CHR. INABA: She is on—should be on Zoom. MR. ONISHI: Oh (inaudible). So Jean Campbell is not here, then? Oh, she is? Oh, there she is. Okay. She's in Hilo. So I just want to get some clarification about how—because we're going back to the original zoning, right, and are we able to put in conditions? (Note: At this time, Planning Director Jeffrey Darrow came forward to address the members of the Council.) MR. DARROW: Aloha, Chair. Aloha, Vice Chair, members of the Hawaii County Council. Jeff Darrow with the Planning Department. At our last meeting, we delved a little bit into this discussion. As mentioned, I personally, in working with the Planning Department, have never seen the Council add a condition to a reversion or replication or repeal of a zoning ordinance. And it becomes more of a legal question whether or not you can do that. I don't know if we're looking at takings or what it would be. That would again be a legal question. When I look at Chapter 11, the language there, the proposed condition says, "meet the requirements of Chapter 11." Chapter 11 says that affordable housing requirements are required for all new rezonings that add additional units. This one is a repeal of all the ordinances that changed the zoning, and it's repealing it back to its original. Granted, the original zoning is RD (Double-Family Residential), which does allow for a particular amount of residential units, and AG-5 (Agricultural 5 acres) for half of it. Again, I think it would be good to hear from Corporation Counsel in regards to the legality of the question. Thank you. MR. ONISHI: Ms. Campbell, can you on the legal part of this issue? (Note: At this time, Deputy Corporation Counsel Jean Campbell came forward to address the members of the Council.) MS. CAMPBELL: Good morning, everybody. Jean Campbell, Deputy Corporation Counsel. Apologies that I am unable to be there in Kona with you. So I'm in my office because the Hilo Council chambers is closed this morning. As you know, the State grants the zoning powers to the counties. And that grant, under Chapter 46 of the Hawaii Revised Statutes, is very broad. So the State authority to the counties does not prohibit the conditioning of a reversion like this. However, any time the government generally is imposing conditions on approvals, we, as the government, need to be able to identify the impacts that our Page 10 Hawaii County Council-45 July 23,2026 approval is having. And then all conditions, in order to be constitutional, according to the United States Supreme Court, conditions must be rationally related to the impact that's happening. So we have to be able to say, "This is what's going on here, and we are going to mitigate that impact by this condition." And they also need to be (inaudible)proportional. And so, I believe when I had spoken to you about this in the past, the examples that I had given you are again very simplified. But if a property is being changed from, for example, agricultural to commercial properties, it wouldn't be appropriate for us to condition that approval by asking for a school because a commercial property doesn't create students. And again on the proportionality side, a very simplified example: If we were granting additional residential density, that does potentially generate students. So school-related conditions could be rationally related. If we are creating ten lots, we can't ask for an entire school because 10-20, perhaps, new students don't generate the need for an entire school. If we were, I don't know what the number is, but you know, say we're granting an approval for a thousand-lot residential increase in density, then maybe asking for a whole school would be proportional. So, in order to identify a condition that would be appropriate for a reversion like this, the Council would need to identify the impact that this reversion has and then make sure that any condition you attach is rationally related to that impact and is also proportional. And I would agree with everything that Director Darrow has said. And a note that he is correct that, to our knowledge, there are no other properties in the County of Hawaii with their original zoning with any kind of conditions attached. MR. ONISHI: Can you mention or can you explain a little bit about Chapter 11? MS. CAMPBELL: Again, I'm not an expert on Chapter 11. So I consulted with the Deputy Corporation Counsel in our office who works with Housing. We both took a look at it and came to the same conclusion that Director Darrow did, that a reversion such as this would not trigger any Chapter 11 requirements because it's not a new rezoning. MR. ONISHI: Okay, thank you. On Corporation Counsel's recommendation to the body, should we not approve this amendment? MS. CAMPBELL: If that's a question to me, I think that is the sort of answer that I would prefer to give you in Executive Session rather than open session. And I'll also defer to Renee MR. ONISHI: Ms. Schoen? Page 11 Hawaii County Council-45 July 23,2026 MS. CAMPBELL: Our actual Corporation Counsel who I assume is in Kona with you. MR. ONISHI: Would you come up? (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. To the extent that you or anybody else on the body has further questions, I would ask that it not be in open session. MR. ONISHI: Okay. Mr. Chair, I can wait until other discussion. If not, can I make a motion to go into Executive Session? CHR. INABA: We'll hear from Council Member Kimball. MS. KIMBALL: I would actually just like to hear from the applicant on their position with respect to this amendment. CHR. INABA: Thank you. If the applicant and your representative would like to come forward? (Note: At this time, Ronald Kim, applicant's representative, and Land Use Planning Consultant Daryn Arai came forward to address the members of the Council.) MR. KIM: Good morning, Council Members. My name is Ronald Kim. I'm helping to represent the applicant, the Xie family. And with me is Daryn Arai. The representative from the Xie family is in the audience as well, Mr. Andy Xie. So the applicant actually would object to the proposed amendment. I think there are a number of legal issues that are raised. I think Ms. Campbell did a great job explaining. There is a takings issue. There's also an issue of unequal treatment. But I think the most important issue, the one that's easiest to really wrap your heads around is the applicability of Chapter 11. Looking at Hawaii County Code Section 114(a)(1), the affordable housing requirements will apply to new rezonings that would result in increased residential use. In this case, it's very clear, to me at least, that there's not going to be an increase in residential use with the proposed action. It would actually result in a decrease of residential use. There's going to be I think 62 less units, by the Planning Department's calculation, that the developer could potentially build on the property due to the reversion of zone. We also don't believe that it's a new Page 12 Hawaii County Council-45 July 23,2026 rezoning as well because it is a reversion where you're taking away. You're repealing prior zoning ordinances and just going back to the original zoning. So that was the main point we'd like to raise. CHR. INABA: Council Member Kimball, you still have the floor unless you yield. MS. KIMBALL: Thank you. I appreciate the amendment and the intention behind it, but I have concerns about the appropriateness, kind of in line with what Corporation Counsel Campbell mentioned. So I will not be supporting the amendment. Thank you. CHR. INABA: Council Member Galimba. MS. GALIMBA: Thank you. Similarly, I understand the intention and always wanting to look out for affordable housing, but I think it's both legally and practically inappropriate for this particular case. But happy to go into Executive Session if folks want to discuss this. Thanks. CHR. INABA: Council Member Villegas. MS. VILLEGAS: I want to thank Corporation Counsel for sharing your legal opinion. It seems there are more complications related to this than we really need or perhaps should take up at this time. So I'd like to withdraw Communication 937.4. Withdraw Motion Ms. Villegas withdrew her motion to amend Bill 168 with to Amend: the contents of Comm. 937.4. CHR. INABA: Any further discussion on Bill 168? Council Member Kaneali`i- Kleinfelder. MR. KANEALI`I-KLEINFELDER: I was just checking. (Inaudible)the document there is mention of a royal patent on this property. Mr. Arai? MR. ARAI: Daryn Arai, assisting the applicant. I am not aware of a royal patent as it applies to this property. Where are you finding that information? MR. KANEALI`I-KLEINFELDER: Both in Exhibit A and Exhibit B. I'm sorry, Exhibit B and Exhibit D, as in "delta." CHR. INABA: Council Member, which communication is this in? Page 13 Hawaii County Council-45 July 23,2026 MR. KANEALI`I-KLEINFELDER: This is on Bill 168, and it's at the bottom of Bill 168. So my question for the applicant is if a clear title has been provided or a quiet title action (inaudible) covered in previous years or for this applicant specifically. MR. KIM: We'd like to check with our client quickly just to confirm that he had clear title when he purchased the property, because we were not with him at that stage. MR. KANEALI`I-KLEINFELDER: Thank you. CHR. INABA: Let's table this. Vote on Motion to Mr. Kaneali`i-Kleinfelder moved to table Bill 168. Table: Seconded by Ms. Villegas and carried by the following (Approved) voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. 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 125: AMENDS CHAPTER 25, ARTICLE 7, DIVISION 4, OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO THE PAHOA VILLAGE DESIGN DISTRICT Clarifies duties, procedures, and other regulations regarding the Pahoa Village Design Guidelines and the Pahoa Design Review Committee; makes other technical and non-substantive amendments. Reference: Comm. 709 Intr. by: Council Member Kierkiewicz First Reading: July 8, 2026 Motion to Approve: Ms. Kierkiewicz moved to pass Bill 125 on second and final reading. Seconded by Mr. Onishi. CHR. INABA: Council Member Kierkiewicz. Page 14 Hawaii County Council-45 July 23,2026 MS. KIERKIEWICZ: Thank you. It's surreal to think that we've finally arrived at this moment after many years of community engagement. The Pahoa Village Design Guidelines were adopted by the Council in 2013. And the idea was to preserve the village's small town plantation-era character and guide future investments in development and renovations. Projects like the Puna Kai Shopping Center demonstrate that thoughtful development and community character and identity can coexist. This bill is largely a housekeeping measure. It clarifies how the design review committee will be convened and the roll that the Puna CDP (Community Development Plan) Action Committee will play in identifying those individuals. It also provides clear guidelines for any applicant that is navigating the review process for building renovations as well as new development so that, again, the results of the design reflects Pahoa's identity, sense of place, small town charm, and creates a very cohesive and welcoming atmosphere. I just want to thank everybody that has contributed to this effort over the years and respectfully ask my colleagues for their continued support. Thank you. CHR. INABA: All those in favor of approving Bill 125 at second and final reading, please say "aye." Vote on Bill 125: The motion to pass Bill 125 on second and final reading (Adopted) was carried by the 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 126: AMENDS CHAPTER 25, ARTICLES 1, 3, 5, AND 7, OF THE HAWAI`I (Draft 3) COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO SPECIAL DISTRICTS Creates the Downtown Pahoa commercial district as a new special zoning district; establishes new permitted uses. Reference: Comm. 710.6 Intr. by: Council Member Kierkiewicz First Reading: July 8, 2026 Motion to Approve: Ms. Kierkiewicz moved to pass Bill 126, Draft 3, on second and final reading. Seconded by Mr. Onishi. Page 15 Hawaii County Council-45 July 23,2026 MS. KIERKIEWICZ: Thank you, Chair. Another bill many years in the malting. This particular effort was initiated because the community initially wanted to do a master plan for Pahoa. But a series of events like volcanic eruptions and the COVID (coronavirus disease)pandemic made it very clear that this traditional master plan may not be what the universe has in mind for our community. With more than 330 property owners in the Pahoa Town Village, achieving consensus around a singular vision and figuring out how we would pay for it proved to be very difficult. And so we asked ourselves, as a planning hui, a very different question: What sort of legislative tools do we have access to so that we can actually empower property owners and community to shape Pahoa's future? And this is what this particular bill accomplishes. The Downtown Pahoa Commercial Special District is intended to help realize the vision that the community established through the Puna CDP, the Kilauea Recovery and Resilience Plan, all the fricking plans that exist to showcase Pahoa's role as a thriving regional town center. It expands opportunities for economic activity by allowing for a broader range of compatible uses including light industrial and cultural enterprises, while remaining consistent with the area's State Land Use designations. I think it's really important to emphasize that this designation does not impose new taxes or fees or costs on property owners. It provides flexibility for those who choose to invest in their properties and in Downtown Pahoa. I also want to note that this process is entirely voluntary. So, if it doesn't work for you, you can ignore it and just continue to maintain your current zoning. But if this is something that you would like for yourself and your property,please reach out to the Planning Department so they can help facilitate that process. Again, this legislation reflects many years of hard work and collaboration, and is in direct response to what the community has asked for for many years: Give us the opportunity to direct our own futures in a way that ensures Pahoa's character is preserved. I want to thank the Planning Department, Corporation Counsel, my team, LRB (Legislative Research Branch), and just the massive community hui for the many years of engagement and support to finally get to this point over the finish line. Thank you, Chair. CHR. INABA: Thank you. All those in favor of approving Bill 126, Draft 3, at second and final reading,please say "aye." Page 16 Hawaii County Council-45 July 23,2026 Vote on Bill 126: The motion to pass Bill 126, Draft 3, on second and final Draft 3 reading was carried by the following voice vote: (Adopted) Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, and Chair Inaba— 8. Noes: None. Absent: Council Member Villegas— 1. Excused: None. Bill 163: AMENDS CHAPTER 19, ARTICLE 8, OF THE HAWAI`I COUNTY (Draft 2) CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO REAL PROPERTY TAXES Establishes a new real property tax dedication for certain properties that are owned by a descendant of a person who owned the property at least one hundred years ago to be subject to the minimum tax. Reference: Comm. 909.6 Intr. by: Council Member Hustace First Reading: July 8, 2026 Motion to Approve: Mr. Hustace moved to pass Bill 163, Draft 2, on second and final reading. Seconded by Mr. Onishi. CHR. INABA: Council Member Hustace. MR. HUSTACE: Thank you, Chair. I first want to thank my District 9 team, my colleagues here on the dais, Real Property Tax DivisionI know they're not here with us today, the administrators—the Office of Hawaiian Affairs, and everyone who took the time to provide testimony and participate in the legislative process regarding this measure. The amendments that we adopted in Committee improve transparency, strengthen the administration of the program, and ensure the legislation remains practical and accountable in preserving its original purpose. At its heart, Bill 163 is about helping preserve generational family lands, the goal being that the future generations have the same opportunity to care for these lands as the generations who came before them. Across Hawaii Island, there are families who continue to steward lands that have been passed down through generations. These properties are more than parcels on a tax map. They represent family history, genealogy, culture, identity, and a lasting connection to place. No single policy can address every challenge facing generational family lands and affordability, but property taxes are one area where we can make a meaningful difference. Page 17 Hawaii County Council-45 July 23,2026 The goal of this bill is to not simply reduce someone's property tax bill. It also helps to qualify families keep generational lands in their family for the next generation. It's been an honor to work on this proposal and bring it before you, and I appreciate everyone who has helped to strengthen it along the way. I believe that Bill 163 represents a thoughtful balance and meaningful step forward. I respectfully ask for your support on this measure. Thank you, Chair. CHR. INABA: Thank you. Any further discussion? Seeing none, thank you, Council Member Hustace, for bringing this forward. All those in favor of approving Bill 163, Draft 2, at second and final reading, please say "aye." Vote on Bill 163: The motion to pass Bill 163, Draft 2, on second and final Draft 2 reading was carried by the following voice vote: (Adopted) Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, and Chair Inaba— 8. Noes: None. Absent: Council Member Villegas— 1. Excused: None. Bill 164: AMENDS CHAPTER 2, ARTICLE 13, DIVISION 2, SECTION 2-69, OF THE (Draft 2) HAWAI`I COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO THE HOUSING ADMINISTRATOR Requires Council confirmation for the Housing Administrator. Reference: Comm. 914.3 Intr. by: Council Member Onishi First Reading: July 8, 2026 (Note: Comm. 914.4, from Council Member Dennis "Fresh" Onishi dated July 17, 2026, transmitting proposed amendments to Bill 164, Draft 2, was circulated.) Motion to Approve: Mr. Onishi moved to pass Bill 164, Draft 2, on second and final reading. Seconded by Mr. Hustace. Motion to Amend: Mr. Onishi moved to amend Bill 164, Draft 2, with the contents of Comm. 914.4. Seconded by Mr. Hustace. CHR. INABA: Vice Chair Onishi. MR. ONISHI: Thank you, Chair. This is just adding in, which we didn't have, the Mayor shall appoint the administrator within 30 days of taking office or within 60 days of being vacant. So I'm asking for your guys' support. Page 18 Hawaii County Council-45 July 23,2026 CHR. INABA: Thank you, Vice Chair Onishi. All those in favor of amending Bill 164, Draft 2, with the contents of Communication 914.4, please say "aye." Vote on Motion to The motion to amend Bill 164, Draft 2, with the contents of Amend: Comm. 914.4 was carried by the following voice vote: (Approved) Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Vote on Motion to Mr. Onishi moved to suspend Council Rule 23 to waive the Suspend Council holdover for the substantive amendment of Bill 164, Rules: Draft 2. Seconded by Ms. Villegas and carried by the (Approved) following roll call vote: Ayes: Council Members Galimba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Onishi, Villegas, and Chair Inaba—7. Noes: Council Members Hustace and Kimball—2. Absent: None. Excused: None. Vote on Bill 164: The motion to pass Bill 164, Draft 2, as amended to Draft 3 Draft 3, on second and final reading was carried by the (Adopted) following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Vote on Motion to Ms. Kierkiewicz moved to remove Bill 168 from the table. Remove from Table: Seconded by Mr. Onishi and carried by the following voice (Approved) vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Page 19 Hawaii County Council-45 July 23,2026 CHR. INABA: Mr. Arai and Mr. Kim, if you'd like to provide some answers to Council Member Kaneali`i-Kleinfelder. Council Member Kaneali`i-Kleinfelder, you have the floor. MR. KANEALI`I-KLEINFELDER: Thank you. MR. KIM: Thank you, Council Member Kaneali`i-Kleinfelder, for the question. It was a good question. We did check and confirm with our client, and there was clear title to the property when the family purchased the property. They did obtain a title report and title insurance from Title Guaranty warranting clear title. MR. KANEALI`I-KLEINFELDER: Okay. And then a metes and bounds survey for both properties? MR. KIM: Yes, we do have that too. MR. KANEALI`I-KLEINFELDER: Okay, thank you. Thank you very much. CHR. INABA: Council Member Kimball. MS. KIMBALL: Yes, wanted to just do a temperature check. There is an amendment to remove the section that would be available for conditions, which I would like to put forward now, unless anybody on the body would like to retain the opportunity to add conditions at our next discussion. I do not see any. So with that, a motion to amend Bill 168 with the contents of Communication 937.2. Motion to Amend: Ms. Kimball moved to amend Bill 168 with the contents of Comm. 937.2. Seconded by Ms. Galimba. CHR. INABA: Council Member Kimball. MS. KIMBALL: It is just housekeeping. Since there will be no conditions added to this zoning ordinance, we will not need that section in the bill. Thank you. CHR. INABA: Thank you. All those in favor of amending Bill 168 with the contents of Communication 937.2,please say "aye." Vote on Motion to The motion to amend Bill 168 with the contents of Amend: Comm. 937.2 was carried by the following voice vote: (Approved) Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Page 20 Hawaii County Council-45 July 23,2026 Vote on Bill 168: The motion to pass Bill 168, as amended to Draft 2, on first Draft 2 reading and adopt Legislative Approvals and Acquisitions (Approved) Committee Report No. 43 was carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. STATEMENTS The Chair directed the Council to proceed to the next order of business, FROM THE Statements from the Public. PUBLIC ON BILL 165 The following individuals registered to speak and came forward when called by (DRAFT 2) the Chair: (COMM. 915.5): Deborah Ward: In opposition. Susie Osborne: In support. Debbie Hecht: In opposition. (see Comm. 915.9) Bill 165: INITIATES AN AMENDMENT TO ARTICLE X OF THE CHARTER OF THE (Draft 2) COUNTY OF HAWAI`I (2024 EDITION), RELATING TO PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION Removes the $3 million accrual limit for the Public Access, Open Space, and Natural Resources Preservation maintenance fund;provides that all expenses from the fund must align with the fund's purpose; and authorizes the awarding of grants from the fund. Reference: Comm. 915.5 Intr. by: Council Member Kierkiewicz First Reading: June 17, 2026 Second Reading: July 8, 2026 2/3 Vote: Third of three required readings, Section 15-1(a), Hawaii County Charter (Note: The following proposed amendments to Bill 165, Draft 2, were circulated: 1) Comm. 915.7, from Council Member Holeka Goro Inaba dated July 21, 2026, and 2) Comm. 915.8, from Council Member Heather L. Kimball dated July 23, 2026.) Page 21 Hawaii County Council-45 July 23,2026 Motion to Approve: Ms. Kierkiewicz moved to pass Bill 165, Draft 2, on third and final reading. Seconded by Mr. Onishi. CHR. INABA: Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. I appreciate the robust discussion with community and my colleagues and the opportunity to take this to third and final reading. Bill 165 is a targeted amendment to our Charter to improve how the County supports long-term stewardship of lands acquired through the PONC Preservation Fund and lands that have been nominated and acquired through conservation easement. This proposal is the product of months of discussion that began in March at the summit that included nonprofit stewards, current and former PONC commissioners, the Department of Finance, and PONC staff and community members who had been involved with PONC since its inception. The message coming out of the summit was very clear. There needs to be meaningful updates to the maintenance fund so that it can better support the organizations that have been entrusted to care for these important places. As introduced, the bill proposed to increase the annual transfer to half a percent, remove the $3 million cap on the fund, and move the list of eligible stewardship activities and procedures for administering the fund into the County code. This was something that came right out of the summit that was agreed upon unanimously by summit attendees. Through this legislative process, the Council has further amended the measure to actually retain the annual transfer at a quarter percent while removing the $3 million cap. I really appreciate everyone's thoughtful discussion and willingness to find common ground on this particular area. I think it strikes the right balance. It is prudent. We are maintaining the current funding percentage while allowing unspent funds to accumulate over time. It also provides flexibility. Every single Council Member and the Administration can, through the budget process, increase that amount. The baseline is a quarter percent. All of these funds, as the deputy for Finance has confirmed in previous meetings, monies that were put into the maintenance fund have not been fully expended on an annual basis. So it's really hard to justify increasing the amount. Again however, a quarter percent is the baseline, and future councils and the administration have the ability to add more through the budgeting process. (Bill) 165 is one piece of a broader effort. There is a companion code amendment that has been developed and circulated by community. I really appreciate the comments on that piece that had been provided by the Friends of Amy Greenwell, Debbie Ward, Beth Robinson, Jodie Rosam. Folks are hungry to see these Page 22 Hawaii County Council-45 July 23,2026 provisions in our County code so that if it needs to be updated over time, we have the ability to do so as a Council, which is still a very public and transparent process. There were many gaps that were also identified during the summit that this code piece would address. And if we are able to move forward with getting this particular question on the ballot, we as a Council can work over the next few months to really refine this important companion measure. It also would not take effect unless the Chater amendment passes. I understand that there are a couple of amendments from my colleague that would work to provide additional clarity to the community and strengthen the overall work product. I appreciate and look forward to having that discussion. Thank you, Chair. Motion to Amend: Ms. Kierkiewicz moved to amend Bill 165, Draft 2, with the contents of Comm. 915.7. Seconded by Mr. Onishi. CHR. INABA: Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you. I would like to have Deputy Finance Director come forward. (Note: At this time, Deputy Finance Director Malia Kekai came forward to address the members of the Council.) MS. KIERKIEWICZ: Just by the nature of our budgeting process and tax collections, there was an implicit understanding on the Administration's side that deposits into the maintenance fund would be made on an annual basis. That was not explicitly clear to the community. So this particular communication notes that, at least annually, deposits would be made. I just want to confirm that you've seen this language, Director, and fully understand the assignment. MS. KEKAI: Malia Kekai, Deputy Finance Director. Yes. I can confirm we've seen the language and we agree with it. CHR. INABA: Any discussion on the amendment? Council Member Kaneali`i- Kleinfelder. MR. KANEALI`I-KLEINFELDER: I appreciate the amendment mainly because when we start leaving things out like this and we leave question marks, then it becomes a problem. The bill needs to be specific in addressing both community concerns and the intention of this section of our Charter. Thank you. CHR. INABA: Thank you. All those in favor of amending Bill 165, Draft 2, with the contents of Communication 915.7, please say "aye." Page 23 Hawaii County Council-45 July 23,2026 Vote on Motion to The motion to amend Bill 165, Draft 2, with the contents of Amend: Comm. 915.7 was carried by the following voice vote: (Approved) Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. CHR. INABA: If we're going to just jump right into the next amendment, I think that's fine. MR. HENRICKS: Council's past practice says that if there are additional amendments to immediately follow, that is acceptable. Anything other than deliberating on the main motion that would lead to a final vote, that would require a suspension of the rules. Motion to Amend: Ms. Kimball moved to amend Bill 165, Draft 2, with the contents of Comm. 915.8. Seconded by Ms. Villegas. CHR. INABA: Council Member Kimball. MS. KIMBALL: This has two minor amendments. The first, the request that we were provided with for proposed amendments, I did kind of research the standard legal language. This wording"itemized accounting of receipts and disbursements" is sort of a term of art with respect to financial accounting that would cover all of the items that were in the requested amendment. So that's just trying to keep it simple there. And then just the addition of Item (g), which would include the public notice of the annual opportunity for maintenance funds. CHR. INABA: Any discussion? Council Member Kierkiewicz. MS. KIERKIEWICZ: I just want to voice my support for these. I see them as friendly amendments, again to strengthen the overall work product. I think with the Finance Department's new accounting system and grants management system, it will be so much easier to track nonprofit expenditures and sort of list those itemized receipts and disbursements on the website. And I do appreciate the provision about the public notice with the minutia of it moving into the code so that there's explicit direction by the Finance Department, and clarity in community around when the applications are available, the timing of submitting them, and when awards are going to be made. In full support. Thank you. CHR. INABA: Council Member Kagiwada. Page 24 Hawaii County Council-45 July 23,2026 MS. KAGIWADA: Thank you. Also in full support. I'm really thankful that Council Member Kimball introduced this, because I think—although I don't think it changes things overall as Council Member Kierkiewicz mentioned—it's really a friendly amendment and maybe just defining some things a little bit better. But it does show that I think there's a clear desire here to make sure that the public is always informed and kept up to date on what's going on with this fund. And especially because we know so many people worked so hard for so long on this fund, it's really important to see this put in here. So, happy to support this amendment. CHR. INABA: Council Member Villegas. MS. VILLEGAS: I also want to express my gratitude for the initiative taken and apologize. My legislative aide is out. So these amendments were something I was kind of crippled to work on the last few days. So I think both of you, as I read through the testifiers and some of the original activators and mana wahine putting this together, I remember being a part of this back in my twenties. While not perfect and while the terminology does not exactly reflect what is recommended by some of our testifiers, I do see the intentionality. I really appreciate the term "shall"being specifically listed here. And I'm in full support of this amendment. So I yield. CHR. INABA: All those in favor of approving the amendment in Communication 915.8,please say "aye." Vote on Motion to The motion to amend Bill 165, Draft 2, with the contents of Amend: Comm. 915.8 was carried by the following voice vote: (Approved) Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Vote on Motion to Ms. Kierkiewicz moved to suspend Council Rule 23 to Suspend Council waive the holdover for the substantive amendment of Rules: Bill 165, Draft 2. Seconded by Ms. Kagiwada and carried (Approved) by the following roll call vote: Ayes: Council Members Galimba, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Onishi, Villegas, and Chair Inaba—7. Noes: Council Members Hustace and Kimball —2. Absent: None. Excused: None. Page 25 Hawaii County Council-45 July 23,2026 CHR. INABA: Any further discussion on this bill? Council Member Villegas. MS. VILLEGAS: I just want to take a moment to personally and professionally share my respect and admiration for the women who have been the advocates and champions of this program and project all along. Also, to express my inner turmoil for navigating this piece of legislation and the intentionality behind it, while also honoring your fears and concerns and duly worthy lack of trust. And that's what I really recognize as being the bottom line in all of this and why you strategically put this in the Charter. And your vigilance to protect this fund and the purpose of the maintenance fund in perpetuity. It just sucks to have to be in this seat at this time, but I hope you can understand. I'd like to think some things have changed. And I do hope that in the interest— and this was all put in the Charter for the purpose of keeping it safe from being raided, and from administrations that did not value and would rather be able to allocate funds like this to their own budgeting leisure and decisions. I think from a procedural standpoint and from the meetings that have been held with community and those doing the work as maintenance, that that's where this presented itself to be moved and articulated more specifically in the code. So I just want toI hope I'm making the best decision here today, and all of us will continue to hope so. And I will also publicly say to any administration,nobody's going away here. While it seems like this legislation is likely to pass today and then go onto the ballot, we'll be here to hold accountable and to protect these resources, and to ensure that the appropriate authentically pono distribution of these funds are never gutted, are never taken away from their intended purpose. And one of the interesting dances we get to do in this job is you can never please everyone. So with that, I yield. CHR. INABA: Council Member Galimba. MS. GALIMBA: Thank you. I want to thank the author for this—some of the changes are very much appropriate—and also to the amenders who made this a better bill and all the discussion we've had. However, I think—we've been sort of under a time gun through this process. So I'm not going to be supporting it today because of that and the main—not giving the community a long enough time to metabolize this, and will also be causing some grief for the staff. So those are my reasons for not supporting it today. CHR. INABA: Council Member Kimball. Page 26 Hawaii County Council-45 July 23,2026 MS. KIMBALL: Thank you. I actually wanted to start, if I may, with a question to the Clerk in terms of drafting. Would it be possible, through our drafting procedures, in the future to have a bill that contained both a Charter amendment and a code amendment as long as the subject matter was the same? MR. HENRICKS: No. MS. KIMBALL: Why? MR. HENRICKS: Because. Because I said so. MS. KIMBALL: Okay, well MR. HENRICKS: Well, I mean,just the practicality of it is that a Charter amendment requires three readings; a code amendment requires two. A Charter amendment requires six votes to pass each reading; code amendment requires five. Charter amendment then also has other procedural requirements that a code requirement doesn't. So I think, though they're both obviously policy documents, their pathways for passage and adoption and the implications are different; therefore, they must be done separately. And also I would presume, too, that when crafting policy, if something is deemed to be appropriate per the Charter, then it singularly is. And that should be—there is a singular vehicle for that, and that would be the bill to do so. Otherwise, if it's something that should just be an ordinance that goes into the code, that does not require the approval of our citizen voters. It takes its own path as well. MS. KIMBALL: Okay, we're going to have a deeper discussion about this. MR. HENRICKS: I mean, I can just imagine the scenario where if, let's say, you did create a bill that says it's amending this part of the Charter, or adding to it, and amending this part of the code and there's five votes. What does that mean? Does that mean the bill fails? MS. KIMBALL: I would presume so because of the requirement. MR. HENRICKS: Those are legal questions that I think would be probably just better to be avoided, quite frankly. MS. KIMBALL: Yeah, well, sometimes it's better to MR. HENRICKS: But I appreciate your creative thought. I've never even thought of that before. So novel. Very novel. MS. KIMBALL: Well, that has been and I've expressed this before, my primary concern was that there's two things that needs to happen with this. There needs to Page 27 Hawaii County Council-45 July 23,2026 be the Charter amendment in order for the code amendment to happen. In order to feel comfortable about the Charter amendment, there has to be that code. And while I understand the complications of that procedurally, I think there has got to be a way where both are happening at the same time. I agree with the intention and the purpose of what you're trying to put forward to the maker, and obviously, you spent a little time over the last intervening period to try to make some amendments to make this palatable. But what I actually came back to, as I was thinking about it earlier this week, is that I don't have constituents that are clamoring for this right now. In fact, I have a lot of constituents that would prefer that we wait and address these things in a more holistic way. If there was a tremendous sense of urgency that this had to happen this year and had to be on this ballot, I think I could be supportive. But I'm not getting that sense of urgency from my constituents. Rather, I'm getting a sense of this is so significant and important, let's take our time and do it right. And so I won't be supporting this either today. But, Council Member Kierkiewicz, what I can commit to you is that should this not pass either today or on the ballot, I will continue this work if I'm on this dais the next go round and ensure that something comes forward to address the very real problems that I think you are trying to do with this amendment. I do support that. I just take issue with the fact that we've not been able to solidify at this time the code amendment. Thank you. CHR. INABA: Thank you. Deputy Director Kekai? MS. KEKAI: Sorry. Malia Kekai. I just needed a little bit of clarification on the language. The itemized—sorry, you guys went so fast on the amendment, I missed the opportunity at that point. But the"itemized accounting of receipts and disbursements," currently we do have a financial statement posted under financials on our website. I'm wondering, is it the intent that this would also include kind of like the grant report inside of this? Or would this just be the general, like, this is how much money we give out for this grant, and then it shows kind of like debits and credits? And then in the grant system, it will have the report with the receipts and the accounting of what was spent in that grant. Is that your understanding, that it would be ? CHR. INABA: Are we in Section 10-16(d), as in"dog"? MS. KEKAI: Yes, (Subsection) 3, the new language that they just added with the amendment, "including an itemized accounting of receipts and disbursements." CHR. INABA: Council Member Kierkiewicz. Page 28 Hawaii County Council-45 July 23,2026 MS. KIMBALL: That was my amendment. CHR. INABA: Council Member Kimball. MS. KIMBALL: So the intention of that was to have the financial reporting that came out of the Finance Department show all sources of revenue. So the income coming from the tax revenue and potentially any other sources. And then the disbursements, including the payees, and the purpose of those payees be more detailed. Itemized disbursements with regard to each individual stewardship grant, like "This amount was for weedwhacker gas, and this was for whatever." That would be under the contract, and that would not be part of this financial report. That was the intention. MS. KEKAI: Okay, perfect. Thank you so much. I appreciate your time. CHR. INABA: Thank you, Deputy Director. Any further discussion? Council Member Hustace. MR. HUSTACE: Thank you, Chair. I appreciate the conversation about the PONC maintenance side of things. And I am hearing from community members about the flexibility and the need for flexibility in the management side of everything for the parcels they are trying to manage and care for and steward. So I appreciate that opportunity and forthcoming discussion about that. I think that's worthwhile in terms of some of the flexibility. The management plans for the properties I think is crucial. It's kind of lacking at the moment. So something definitely to consider. And I'm hearing from constituents that they are supportive of this. Removing that $3 million cap is critical to the opportunity and future use of those spaces. A lot of discussion has revolved around what community is looking for as well, and I appreciate the outreach into community. It will be a worthwhile discussion going forward. So thank you for the conversation. CHR. INABA: Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you, Chair. Ms. Kekai, I have a question about the fund itself. So Section 10-16(a) establishes what is now known as a special fund versus what it was before, which was the maintenance fund. Runs through what shall be deposited. Section (b), the purpose of the fund is to blah, blah, blah. For you, the difference between what exists now as the maintenance fund—and that's removed, which is interesting—that the "hereinafter known as maintenance fund"is removed. But the rest of the language in the proposed Charter amendment discusses what we're calling the maintenance fund, but it's established as a special fund. What is the difference between a special fund and what it is now? Page 29 Hawaii County Council-45 July 23,2026 MS. KEKAI: Thank you. I think the special fund is just a categorization, like we have highway fund, we have the acquisition fund, we have now the maintenance fund as well from previously. I think that's really just it. It's not a normal—like the general fund. I mean, I would defer to the maker if she has a different interpretation, but that's what I was thinking, which is a category. MR. KANEALI`I-KLEINFELDER: No, I think this is more specific, so I was asking you. In State and County, we have different types of funds. Different types of funds can have different purposes or very specific purposes. So, if I was to dive into this deeper, the special fund will get deposits. And then listing the purpose. And then we go a little bit deeper into that thought process then: "All expenses. . . . awards, and other uses of the . . . fund"—the maintenance fund however, not a special fund but the maintenance fund "must align with the purpose of the fund"—this is where I think we need to be careful. This is where I think we're straying away from. I think the conversation is really revolving around this piece: "as may be further described, specified or allowed by ordinance." So, while we're clarifying what the purpose of the special fund is and the Charter section itself, this section as well as a few other places basically refers to this ability to define "by ordinance." But without the ordinance existing, but by creating that puka where we can come in and amend allowable uses of the special fund—and I'm getting really distinct now about what we are considering a special fund, what its allowed purposes or uses are, and how it's moved within the County budget—really becomes an interesting talking point, in my opinion. So, in that sense, can you help me understand what a special fund is, how it's different from what it is right now, and whether it needs to be referred to as a special fund or a maintenance fund? MS. KEKAI: Yeah. I mean, I think it's just special funds are restricted, right. They're restricted funds. And so, therefore, you're right in the sense that the Charter now lays out basically what are the restrictions of how these funds can be spent. And they inform us how they can be spent. The majority of the funds in Charter have those provisions about amending with an ordinanceI'm sorry, not amending, but having further definition within the code via ordinance. That can never contradict with the Charter. So, yes, the Charter does restrict the funds and provide a sort of protection. MR. KANEALI`I-KLEINFELDER: Okay. So then, we're going to take this special fund back to that Section (b): purpose of the fund is to support and promote stewardship, preservation, restoration, public safety, and maintenance of land, interest in land, and easements acquired through Public Access, Open Space, and Natural Resources Preservation Fund. That is the purpose that we're laying Page 30 Hawaii County Council-45 July 23,2026 out, that we are depositing a quarter percent of all RPT (Real Property Tax) revenues into and calling it a special fund unless, however, we decide, by ordinance, to change. MS. KEKAI: Is that a question? Sorry. MR. KANEALI`I-KLEINFELDER: It's rhetorical but it's alsoI'm just summarizing and compiling what my brain is seeing and walking my way through this with you. MS. KEKAI: Yeah, I think it gives the Council the authority to define the Charter. So define what these protections mean, define what these activities are, and how is it to best support/promote the stewardship, preservation, restoration, public safety, and maintenance of the lands. MR. KANEALI`I-KLEINFELDER: Yeah, I agree. For the Council, an interesting piece of this, then, following on that same thought is the real purpose was contained in Section (g) of the original bill, which was then crossed out, which "The maintenance fund shall be used solely for . . . ." And while I did hear from the public that that's a positive, I'm pointing back to the ability of the Council, by ordinance, to both adjust funding and to adjust potentially the uses of this fund. And I think these are crucial points that the public has brought up to our attention, and that they're screaming for protection of a Charter-based control. So I'm hearing both sides of the argument. But I am—the public has raised some good comments on why their concerns are what they are. I yield for now, Chair. Thank you. CHR. INABA: Other discussion? Council Member Kagiwada. MS. KAGIWADA: Thank you. Just since you're there, Deputy Director, thank you. Going back to this Section 10-16(d)(3), the one we just amended. The new amended language, would that include who received the funds, the purpose, the amount, when it was received? Would those details, in your mind, be included in this, including an itemized accounting of receipts and disbursements? MS. KEKAI: Yes, I believe all those things are currently reported on our website. And if we are missing one of those things, we definitely can add that in. But I'm pretty sure it has the amount and then who the money was paid out to. And usually by the name, you can tell what it is for. But if we're missing kind of what the purpose is, we can put that in as well. MS. KAGIWADA: Okay, thank you. I appreciate that. I'm still kind of on the fence on this one as well. I really like the amendments that are put in today. I was disappointed that the amount was kept at a quarter percent, but understanding that Council Members and the Administration can look, when we come to budgeting each year, at increasing that amount if we want. But I am, regardless of Page 31 Hawaii County Council-45 July 23,2026 what happens today and regardless of how I vote,very committed to listening to the public, and especially people who have worked on this for so long, as we go forward with code changes going forward. So I just want to keep that door open to people no matter what happens here today. Thank you, I yield. CHR. INABA: Council Member Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair. I just wanted to chime in on the special fund conversation. In our Charter's Section 10-12, a special fund can only be established upon recommendation of the Mayor. So, without the Mayor providing permission for the Council to create the special fund, we can't create it. I don't think anybody's asking for permission. It's already in the Charter. So it's kind of cleaning up that technical piece there. So I hope that helps to answer your question, Council Member Kaneali`i-Kleinfelder. I was listening to my women's devotional this morning, and the theme was "seeing another perspective,"which I think was so apt for today. Coming into this feeling like I believe I'm doing the right thing, and then I'm just feeling so beat down by what I'm hearing from community—community members who are part of this process—and it felt a bit disheartening, but I can see their perspective. Because, there has been such a fight between government and community, historically, around this fund. So I see the perspective. But I also hope that there is still space and room and opportunity for collaboration. I remain committed as I said—and I've sent copies to Ms. Hecht and other members of the community—with upholding my end of the bargain, transferring what is in the Charter into the code and really listening to the nonprofit stewards at the summit, and even afterwards, about the critical gaps that are in the Charter. Council Member Kimball, one of your nonprofit stewards, P6h5h5 I Ka Lani, Jesse and Kulia Potter, are having real difficulty right now with current language in the Charter. There's so many restrictions in areas of ambiguity that need to be addressed. One of my nonprofit stewards is having to give back money to the County because it is still waiting for the County to take action on its kuleana. And there's no clarity in the Charter about who is supposed to do what when. And yes, Council Member Galimba, it may feel a little bit rushed, but there's still an opportunity to do something right by community so they don't have to wait two years. These are changes that are supported by the Finance Department, by PONC team, by nonprofit stewards. And I hope we give it a fair chance in conversation and move this forward so that we can then begin the important discussion around the code amendment and ways in which we can support the stewards that are caring for these properties. Thank you, Chair. Page 32 Hawaii County Council-45 July 23,2026 CHR. INABA: Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: To the makers, does this affect—one of the points that was brought up in testimony was the commission itself. Does it address commission or is the commission housed separately? MS. KIERKIEWICZ: Chair, I'd like to respond. CHR. INABA: Go ahead. MS. KIERKIEWICZ: This section of Charter does not currently mention anything related to the commission. That is in fact in the code, and their function is fully preserved. MR. KANEALI`I-KLEINFELDER: Thank you. CHR. INABA: Any other discussion? Okay, seeing none, I do want to thank you, Council Member Kierkiewicz. And we did receive a lot of testimony from members of the public. Some of the amendments requested via email have been taken up and passed today. I think the one thing that may be of concern for some is that language as to the application process and—maybe the application process and the uses wouldn't be here in the Charter anymore. But again, I think I've stated this at previous Council meetings. I do believe that those specifics for applications and—you know, I had the conversation with Ms. Hecht regarding something as broad as saying we would do applications annually and keeping that in the Charter. And even that I couldn't support, because as we look ahead with our grant management systems and potential for maybe going to two-year grant windows that allow our stewards to really do the work and not be bogged down by annual applications, to put language like that that is so specific into the Charter I think is cause for concern and actually inhibits the good work that we could potentially do here. So I look forward to seeing the code language. I will be supporting this today and, ultimately, would like to see how we can broaden the scope of our potential uses and make more clear, along with the rest of our County grants, the processes and the transparency on reporting and accountability from those receiving these funds as well. So with that, Council Member Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: I do have a follow up, sorry. So Section 4 of what was stricken under"(h) Stewardship Grants," I was looking for this piece to tie in what our testifiers were requesting. And when I heard from Council Member Kierkiewicz, the application for a stewardship grant, an"organization shall provide to the department of finance and the public access, open space, and natural resources preservation commission the following." But that being stricken Page 33 Hawaii County Council-45 July 23,2026 out, I'm going to assume now, because there's no process anywhere that I can find, (inaudible)potentially there could be code for, that the commission no longer is involved. Is that what I'm understanding? MS. KIERKIEWICZ: Chair, if I could respond? CHR. INABA: Go ahead. MS. KIERKIEWICZ: The commission's kuleana, all of their responsibilities for reviewing both applications to nominate properties and also review stewardship applications, those grants, it's currently in our code. That whole process of their kuleana is currently in the code. MR. KANEALI`I-KLEINFELDER: In our County code. MS. KIERKIEWICZ: In our County code right now. MR. KANEALI`I-KLEINFELDER: Interesting. What section of code? CHR. INABA: 2-214.2. MR. KANEALI`I-KLEINFELDER: Okay, thank you. CHR. INABA: All right, Mr. Clerk, a roll call vote please. Vote on Bill 165: The motion to pass Bill 165, Draft 2, as amended to Draft 3 Draft 3, on third and final reading failed by the following Failed roll call vote: Ayes: Council Members Hustace, Kierkiewicz, Onishi, Villegas, and Chair Inaba—5. Noes: Council Members Galimba, Kagiwada, Kaneali`i-Kleinfelder, and Kimball—4. Absent: None. Excused: None. (Note: Ms. Kagiwada voted"kanalua"then "no." Ms. Villegas voted"kanalua"then "aye.") REFERRALS FOR The Chair directed the Council to proceed to the next order of business, Referrals EXECUTIVE for Executive Session. SESSION: Page 34 Hawaii County Council-45 July 23,2026 Comm. 957: LEGAL PROCEEDINGS CONCERNING ALAN FUKAMIZU From Deputy Corporation Counsel Demetri G. Lametti dated June 17, 2026, requesting an attorney-client confidential discussion to consult with the Council regarding the above-entitled matter. Motion to Close Mr. Hustace moved to close file on Comm. 957. Seconded File: by Mr. Onishi. Vote on Motion to Mr. Hustace moved to enter into Executive Session in order Enter into to hold attorney-client privilege discussion regarding Executive Session: Communication 957, as authorized by Section 92-5(a)(4) of (Approved) the Hawaii Revised Statutes. Seconded by Mr. Onishi and carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. CHR. INABA: We'll be entering into Executive Session for Communication 957. Thank you. Recess: At 11:23 a.m., the Chair called for a recess in order to clear the room. Reconvene: The meeting reconvened at 11:56 a.m. CHR. INABA: Thank you. We are out of Executive Session with Communication 957. Council Member Hustace will give us a brief summary. MR. HUSTACE: Thank you, Chair. Pursuant to Section 92-5(a)(4), Council consulted with the Council's attorney on questions and issues pertaining to our powers, duties, privileges, immunities, and liabilities. Thank you. CHR. INABA: Thank you. Page 35 Hawaii County Council-45 July 23,2026 Vote on Motion to Ms. Kagiwada moved to concur with the recommendation Concur: of Corporation Counsel regarding Comm. 957. Seconded (Approved) by Mr. Hustace and carried by the following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kdneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. Excused: None. Vote on Comm. 957: The motion to close file on Comm. 957 was carried by the Filed following voice vote: Ayes: Council Members Galimba, Hustace, Kagiwada, Kaneali`i-Kleinfelder, Kierkiewicz, Kimball, Onishi, Villegas, and Chair Inaba—9. Noes: None. Absent: None. 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 made announcements regarding community events, activities, and other unofficial business.) ADJOURN- There being no further business, Chair Inaba adjourned the meeting at 12:00 p.m. MENT: Council Approval: 0 C T 2 1 2026 CO CL JH/dg Page 36