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HomeMy WebLinkAboutMIN FC 2017/03/07 2016-2018COMMITTEE ON FINANCE 5th Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii March 7, 2017 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 11:15 a.m. in the Council Chambers, Hilo, by Ms. Maile Medeiros David, Chair. ROLL CALL: Present: Ms. Maile Medeiros David, Chair Ms. Karen Eoff, Vice Chair Mr. Aaron S. Y. Chung, Member Mr. Dru Mamo Kanuha, Member Ms. Susan L. K. Lee Loy, Member Ms. Eileen O'Hara, Member Ms. Valerie T. Poindexter, Member Mr. Herbert M. "Tim" Richards, III, Member Ms. Jennifer Ruggles, Member STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: The following individuals registered to speak and came forward when called by the Chair: Roann Okamura: (representing County's Elderly Activities Division) Coran Kitaoka: (representing County's Elderly Activities Division) Susan Forbes: (representing Hakalau Point Preservation Association) Margaret Wille: Res. 89-17 (Comm. 127), in support. Res. 89-17 (Comm. 127), in support. Res. 87-17 (Comm. 125), in support. Res. 101-17 (Comm. 140), in opposition; and Comm. 109, in support. FC -5 March 7, 2017 Springer Kaye: Res. 101-17 (Comm. 140), comment. (representing Big Island Invasive Species Committee) Deborah Ward: Res. 101-17 (Comm. 140), comment. CHR. DAVID: Before we move on with reading the communications, and I know people are here for Resolution 101, Clerk, if I could make a request right now, for the people that are here for that I would like to actually recess Resolution 101 until—at the end of Environmental Management, when we complete discussion on Communication 116 on this matter. Just in case people are here wanting to stay for Resolution 101, I'd like to just let them know that I think it would—that's my intention, that we take up the discussion regarding Mayor Kim's termination of the composting facility contract before we start discussions on Resolution 101, and I would ask my Council Members what they think about that? That is what I intend to do at the end of the Finance, when I get to Resolution 101. Comments? Mr. Chung, I believe this is your communication? Oh, you weren't here? MR. CHUNG: Yeah, I'm sorry. CHR. DAVID: No. I want to let the Council Members know that I would like to postpone or recess Resolution 101, which is the agreement regarding the greenwaste, until after we take discussion on your communication, at the end of Environmental Management. MR. CHUNG: Well, this is what happened, okay? Only on the back -end did we see the agenda, about a week ago or even less. When I saw that we had two presentations, prior to the one that Ms. Lee Loy and I requested, and one was for an hour and the other one was for two hours, and this all began at 1:00, or was going to begin at 1:00, so to 3 to 4 o'clock, including testimony. We couldn't in good conscience have the administration waiting, so we informed them that we've got to postpone this thing again. You know, we're trying to get a time that's convenient for the Mayor, and what we found out is a month from now. back in Hilo. I'm sorry but we're just trying to work within the context of the agendas, and I wish we had known earlier. CHR. DAVID: So, you're saying that the Mayor's office will not be here for—? MR. CHUNG: Well, we told them they don't have to come; but if you guys want to try to get them here today, that's fine. I'm willing to do it, but not if we're responsible for getting them here. CHR. DAVID: Well, comments, Council Members? Page 2 FC -5 March 7, 2017 MS. O'HARA: I think what the Chair is actually recommending isn't so specific to your request, Councilman Chung, as it is to the fact that it would be best for the Council to hear the presentations that are planned for Environmental Management Committee (EMC) first before we entertain Resolution 101-17. That's what she's basically saying; she's going to recess at that point in the Finance agenda and then reconvene after the EMC meeting. MR. CHUNG: And that might be true. MS. O'HARA: Well, I'm just saying that's she's saying. CHR. DAVID: That's what, yeah. MS. O'HARA: Okay. MR. CHUNG: Right, but she specifically asked for my comments relating to my request so I'm addressing that. I'm saying that's not going to be on today, unless some of you want to go and get the Mayor to attend today. So I don't know what that does to the equation, but I don't see any reason why we can't go with your idea and still hold off on the requested presentation. But, I'm just addressing specifically what was asked of me. CHR. DAVID: Sure. Ms. Lee Loy. Sorry, are you done, Ms. O'Hara? MS. O'HARA: Well, go ahead. CHR. DAVID: Okay. Ms. Poindexter. MS. POINDEXTER: Yeah, I agree going with the recess, and I think we'll have enough time. The only reason why we had three presentations is I had approved already two of Council Member O'Hara's presentation, and then I know that your office, Council Member Chung, requested that this be put on as well. I wanted it to be later, but your Leg. Assistant asked that it could be put on, so out of courtesy we put that on. And, it was good to hear about that because we're going to have now, with the greenwaste operation—I mean, this resolution coming through, I think it's perfect timing to have that done as well. So, I agree with the recess and I think we can do it. CHR. DAVID: Ms. O'Hara. Oh, I'm sorry. MS. O'HARA: May I just ask, Mr. Chung, when did you have that communication with the Mayor's office? Because there was an article Sunday, where he said he would be attending today's meeting, so I wasn't clear. Page 3 FC -5 March 7, 2017 MR. CHUNG: You know, it could have been last week and it could have been yesterday. But I think it was last week, yeah, when we learned what was going to be on the agenda. MS. O'HARA: I'm sorry. Yeah, I don't know. I just know that's what the paper printed, but I haven't been in communication with the Mayor's office so I can't make comment. MR. CHUNG: My understanding is, you know, we've—because I've done it all through staff, I haven't contacted the Mayor's office personally. But we told them, "Let's just hold off already." CHR. DAVID: Okay. MR. CHUNG: And let's just bear in mind too, okay? Because I'm not trying to cast fault on the agenda, I mean it is what it is. I was just asked the question, and I was prepared to make a comment at the Environmental Management meeting, that, hey everyone, we told the Mayor guys they don't have to show up. But with regard to this request, I think Ms. Poindexter knows we made a request. Although it's dated February 13, we made a request right after we learned in the paper, and this was about a month ago, in fact more than a month ago, that the Mayor was intending to cancel. We wanted this thing on the agenda as soon as possible, but because of various factors we've had to wait. This is a very important issue, probably one of the most important issues that we're facing right now. We've had to move it back, back, back for whatever reason, and I'm willing to respect that. As I said, I was just answering a question. I'm not really pointing fingers at anyone. It is what it is. CHR. DAVID: And, I think what the intention here is that we make an informed decision, this body, have the opportunity to vet all the information. I see that the resolution is totally connected with communication, and I believe we need the information. So, yeah, I'm going to Ms. Eoff because she hasn't spoken yet. Ms. Eoff. MS. EOFF: Why don't—I'd like to make a suggestion. That you have other items on Finance Committee, why don't you proceed with the first items and ask staff to contact the Mayor's office and find out if he can be available for Communication 116, at 1:00? That's the time we can start? MS. O'HARA: No, after—I'm sorry, I didn't mean to interrupt. MS. EOFF: I'm saying take her other Finance items. Leave Resolution 101 in recess; when we get to it, just recess the meeting and then that way we can possibly have the presentation on Communication 116, if he's available at 1:00. Page 4 FC -5 March 7, 2017 That's a set time. We could take that one out of order on Environmental Management Committee. CHR. DAVID: Thank you. Ms. Eoff, I think that was my intention. Was to, instead of take all the communications on Finance first, I wanted to raise the question about the order that I'd like to take this in and to give an advance notice that I'm not going to take resolution at the end of this Finance Committee, I'm going to recess it and take it at the end of Environmental Management. What Mr. Chung has advised us right now is something we had no knowledge about. So if we proceed, as Ms. Eoff is suggesting, I'm sure the administration during lunch, we can contact the administration and let them know what we're doing, and go from there. But, I thought it would be at least prudent for me to let our citizens know that if they're waiting for Resolution 101 at the end of Finance, we're not going to have any discussion because I intend to recess that until the end of Environmental Management so you folks don't have to sit here. And, I'm getting comments from Council Members. Mr. Chung. MR. CHUNG: Yeah, not that it really matters but I just got a text from my aide, who said that the Mayor's office was informed on Friday. CHR. DAVID: Okay. So as far as we know, everything— MR. CHUNG: Yes. CHR. DAVID: Yes, they will be here, okay. Inform that, what? MR. CHUNG: They don't need to be here for the presentation that I requested, and Ms. Lee Loy. CHR. DAVID: Well, you know what, let's proceed. MS.O'HARA: Yeah. CHR. DAVID: Let's proceed with Finance, and we will figure this out at the end of—and I intend to recess Resolution 101-17 at the end of Finance. Okay, Council Members. I'm sorry, Mr. Clerk, could you please, Communication 14.7? COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 14.7: REPORT OF CHANGE ORDERS AUTHORIZED: JANUARY 16 - 31 2017 From Finance Director Collins Tomei, dated February 10, 2017, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Page 5 FC -5 March 7, 2017 Vote on Comm. 14.7: Ms. Poindexter moved to close file on Comm. 14.7. Filed Seconded by Ms. Eoff and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Mr. Clerk, Communication 109, please? Comm. 109: PERFORMANCE AUDIT REPORT: INVENTORY MANAGEMENT AT THE DEPARTMENT OF PUBLIC WORKS - HIGHWAY MAINTENANCE DIVISION From Legislative Auditor Bonnie S. Nims, dated February 2, 2017, transmitting the above report in accordance with Hawaii County Charter Section 3-18(d)(2). The purpose of the audit was to determine whether internal controls currently in place are adequate to maintain and safeguard inventory and inventory records, and to identify potential areas of improvement. ; and Comm. 109.1: From Legislative Auditor Bonnie S. Nims, dated February 23, 2017, transmitting a revised report. Motion to File: Mr. Richards moved to close file on Comm. 109 and all related communications. Seconded by Ms. Eoff. (Note: At this time, Legislative Auditor Bonnie Nims and Audit Analyst Maxinne Pacheco came forward to address the members of the Committee.) CHR. DAVID: Discussion, Council Members? I have Ms. Nims here and Maxinne, if anyone has questions. Mr. Kanuha, go right ahead. MR. KANUHA: Thank you, Madam Chair. Can we just get a, maybe introduce yourself and explain exactly what's going on here for our benefit as well as the public's. MS. NIMS: Good morning. Bonnie Nims, Legislative Auditor. Thank you for having us. This communication was to summarize the results of our Performance Audit of Inventory Management. We looked at internal controls and tested inventory for materials, tools, and supplies; as well as control assets, which are the small and Page 6 FC -5 March 7, 2017 attractive assets: the leaf blowers, the chainsaws, things that easily walk off. When we looked at the internal controls, as of current we did find some internal control weaknesses. Management has actually already implemented the majority of them. They were very proactive, so I've got to commend them for that. However, when we did take inventory, we tested inventory a few different ways. We looked at the inventory records and traced it to the yard; we picked some items in the yards and traced them to the inventory records. We looked at purchases to make sure that they got added to inventory. Every which way you could test it; we tried to test it, yeah. Based on those results, we found that about 78 percent of the inventory was recorded accurately. Best practice for industry standard is 95 percent, so not quite hitting that in there. But like I said, the department has made a lot of progress implementing our recommendations so I think they are heading in that direction. MR. KANUHA: Well, that's good because you know when—the memo, the communication states, "Division's inventory management system lacks sufficient internal controls, including ... "—you listed pretty—a good amount of lacks sufficient controls. You know, "independent monitoring, proper recording, and disposal of inventory, continuously tracking of items prone to theft, adequate safeguarding, training of employees, and written policies and procedures." So it's nice to hear that steps were being taken already, since the audit came out, and that's really why we do these things in the first place, to better handle what happens in all of the departments. So, mahalo for the explanation, and mahalo for Public Works being responsive to the audit. So again, thank you, guys, for listening to what is in the best practices of our County. So, I don't have anything further to say, Madam Chair. CHR. DAVID: Thank you, Mr. Kanuha. Mr. Richards. MR. RICHARDS: Ms. Nims, thanks again for coming before us. You said best practice is 95 percent compliance rate, and this one was 78, did I recall that right? Real world, we all shoot for the moon; but 78 percent, how does that stack up in any given review process? Where are we hitting on that? MS. NIMS: I'd have to say probably in the lower percentile. I think most inventory systems are a little bit more accurate. Probably, more like the 80 plus. MR. RICHARDS: Okay. Okay, thank you. So, I'm very pleased that Public Works jumped on it and got things through. Thank you. CHR. DAVID: Thank you, Mr. Richards. Anyone else? Mr. Chung. MR. CHUNG: Good morning, Bonnie, Maxinne. So this was over a period of, what now, from June 2015 to—? Page 7 FC -5 March 7, 2017 MS. NIMS: Through current. MR. CHUNG: Through current, okay. So this is a long audit then, I mean it's an audit that's been going on for a long time then? MS. NIMS: Well, our scope was from 2015. The audit has not been going on since 2015. MR. CHUNG: So these are materials have gone missing since June of 2015, or might it include those that are unaccounted for earlier than 2015? MS. NIMS: It would not account for items unaccounted for earlier than 2015. I'll clarify. Basically, we would take inventory records or purchases from July 1, 2015, through current, and trace those, and that's why we'll get the disposals, things break, things are stolen, things like that. So, we tested a period, about almost a year and a half, of items that were recorded in inventory, or purchased, or disposed; that we looked at internal controls that are going on at the moment. MR. CHUNG: That's kind of difficult for me to digest right now. So that means that nothing that was purchased prior to 2015, June, is included in here? MS. NIMS: If was recorded in the inventory, regardless of when it was purchased, then it was included in the inventory. So, we just took the— MR. CHUNG: If it only went missing, though, since June 2015? For example, something purchased in 2013, recorded, right, shows up missing on June 2015, would that be included in your report or not? MS. NIMS: If it was recorded in the inventory— MR. CHUNG: As of June 2015. MS. NIMS: —as of June 2015, yes, it would be included in our scope. MR. CHUNG: Okay. Okay, alright. Yeah, I just wanted that clarification. Thank you so much. CHR. DAVID: Thank you, Mr. Chung. Anyone else? Oh, Ms. O'Hara, go ahead. MS. O'HARA: Thank you, Chair. And thank you, Bonnie and staff, for coming before us. I just have one question. You mentioned in your summary that eight of the 57, was it? Oh, no, 179 items; of those, eight were new items, totaling $4,677. Were you able or was Public Works able to ever identify it, because you Page 8 FC -5 March 7, 2017 said you were not able to collaborate the information that these items were in use? Were you ever able to identify the new items? MS. NIMS: No, we were not. MS. O'HARA: And is it possible they just were never delivered to the County? MS. NIMS: It was delivered. MS. O'HARA: It was delivered, okay. MS. NIMS: But they could not locate the items. MS. O'HARA: Interesting. Okay. MS. NIMS: They had inserted that the items were in use, but we could not verify that fact. MS. O'HARA: Okay. And I see Public Works is here, can they give us an update? Have they ever been able to verify these things? (Note: At this time, Public Works Director Frank De Marco came forward to address the members of the Committee.) CHR. DAVID: Director De Marco, would you like a three-minute recess? MR. DE MARCO: (Inaudible) CHR. DAVID: Thank you. This Committee is in recess. Recess: At 11:52 a. m., the Chair called for a recess. Reconvene: The meeting reconvened at 11:55 a.m. CHR. DAVID: Alright, Committee on Finance is out of recess. Thank you, Mr. De Marco. MR. DE MARCO: Yes, Frank De Marco, Director, Department of Public Works. As I understand it, these items, the $4,700, $4,800 were in use, basically on trucks, out in the field being used, and so the auditors couldn't physically observe or handle that particular item. So as we understand it, from the auditors, that's a reasonable explanation for these particular items. So, we move forward with a better program for tracking these items in terms of checking these items in and checking them out. Does that help? Page 9 FC -5 March 7, 2017 MS. O'HARA: Yeah, that helps. Can you give some clarification about the types of items that were in the trucks? I don't know. Were they installed in the trucks? You don't know? Sorry. Are we talking shovels and rakes or are we talking—? MR. DE MARCO: Yeah, let me confer on that if you don't mind? MS. O'HARA: Sorry. MR. DE MARCO: We didn't get into that level of detail. MS. O'HARA: Oh, okay, hand -tools, hand -tools. That sounds what it sounds like, you're talking hand -tools. Okay, that makes a lot more sense, okay. MR. DE MARCO: Yeah, it sounds like with chain -saws, weed -eaters, these types of items. MS. O'HARA: But aren't these inventoried at the end of day? And, someplace, I mean, they aren't kept in the truck? MR. DE MARCO: Well, that's the new system that we're bringing on— MS. O'HARA: Oh, okay. MR. DE MARCO: —so that we do better tracking. MS. O'HARA: Oh, okay. MR. DE MARCO: And then the auditors will be coming out in about a year or so to make sure that those systems are working and, you know, that they can observe these assets, as I understand it. MS. O'HARA: Excellent. MR. DE MARCO: Yes. MS. O'HARA: Okay, thank you very much. MR. DE MARCO: You're welcome. MS. O'HARA: Okay, bye. CHR. DAVID: Thank you, Ms. O'Hara. Any other questions from Council Members? Mr. Chung. MR. CHUNG: I wanted to make a comment. When I read the newspaper article, of course it was pretty disturbing, right? But what we don't have here, and I Page 10 FC -5 March 7, 2017 didn't expect anything like this, is what our situation was prior to 2015. We don't know that, and we also don't know—we don't have a comparative study with other departments. I understand the methodology. I understand why this particular division was selected for the audit. But, we don't have those two studies. And, it's easy now for maybe—what I wanted to do is to dispel any notion that this division and its head are doing anything wrong. Because I want to say one thing about Mr. Azevedo, anybody who knows anything about the Azevedo name knows that honesty is—you don't even have to talk about honesty, okay? So I just don't want anyone here leaving, or the public, leaving with the impression that it was under his watch that something like this happened. We don't know what happened before, might have been worse for all we know, right, and we don't know how other departments are doing. I just wanted to say something about our division head. I understand that, now, safeguards are being put into place, address the concerns of the audit and the auditor. That's all. Yeah, I just wanted to make those comments. Thank you. CHR. DAVID: Thank you, Mr. Chung. Mr. De Marco. MR. DE MARCO: Yeah, if I could just make one comment? It is the fact that Neil, Trixy, and some of the other folks that are involved with this issue are new to the County. They weren't around when a lot of this was going on. So, they have done a great job of correcting these deficiencies and have been working closely with the auditor to make sure that we implement systems that protect the public's assets . So, thank you for those comments. CHR. DAVID: Thank you very much. I think Mr. Lee Loy or Mr. Richards was first. Oh, Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you. And thank you, Mr. Chung, for those comments. Because that's what I was looking for, what was the measurable before and what's the measurable now, and Mr. Chung hit the nail on the head, there wasn't one done. This report is not reflective of the people who are there now, and what is actually reflective is how they embraced the recommendations to come head-on and made the department better. I really commend them stepping into these roles. They're challenging, and being new is even more challenging. And then to come up with audit to point out a bunch of flaws, that probably didn't feel good. You know, I'm proud to be Neil's classmate. He's a great guy. He works hard, and he demands the same level of excellence from everybody around him, and congratulations. This audit is just a blip on the radar as far as I'm concerned. Everybody's going to learn from this and they've already embraced the recommendations, so let's just move on already. Page 11 FC -5 Vote on Comm. 109: Filed March 7, 2017 CHR. DAVID: Thank you, Ms. Lee Loy. Mr. Richards. MR. RICHARDS: Just a quick comment. When it comes to hand -tools, I fixed enough pipes and enough fences, and I put down pliers and never found them again. So I appreciate the difficulty in keeping track of some of that stuff. Thank you. That's good. Move forward. CHR. DAVID: Mahalo for your personal insight, Mr. Richards. I just remembered that. Yes, you don't have to be rancher to do that. I lose things a lot too. But everybody's done, thank you. I want to say mahalo to Ms. Nims and your department, and also, Director De Marco. Really, I didn't realize you were classmates. But, Mr. Azevedo is the most honest, in my dealings with him, fair, and an up -and -up person that I've met so far. He really has the community at heart. I think that's—not to mention, I'm not excluding the rest of your department, because thank you very much for what you folks do, but thank you for clarifying the things on this audit. And, that we're moving forward in a positive direction and I'm very happy. So thank you, everyone. That's it. We're done. Okay, Council Members, all those in favor of filing Communication 109 please say "aye." The motion to close file on Comm. 109 and all related communications was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Mr. Clerk, please, Communication 114. Comm. 114: SECOND QUARTER REALLOCATION REPORT: OCTOBER – DECEMBER, 2016 From Human Resources Director Sharon Toriano, dated February 10, 2017. Vote on Comm. 114: Mr. Richards moved to close file on Comm. 114. Filed Seconded by Ms. Poindexter and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 9. Noes: None. Page 12 FC -5 ORDER OF RESOLUTIONS: Res. 87-17: Motion to Approve: Vote on Res. 87-17: (Approved) March 7, 2017 Absent: None. Excused: None. CHR. DAVID: Moving on to Order of Resolutions. Mr. Clerk, Resolution 87-17, please. The Chair directed the Committee to proceed to the next order of business, Order of Resolutions. AUTHORIZES THE DIRECTOR OF FINANCE TO ENTER INTO NEGOTIATIONS FOR THE ACQUISITION OF TAX MAP KEY: 2-9- 002:023, ALSO KNOWN AS HAKALAU VALLEY, SITUATED IN THE DISTRICT OF HAMAKUA, UTILIZING THE PUBLIC ACCESS, OPEN SPACE AND NATURAL RESOURCES PRESERVATION FUND The 83.19 -acre property is listed as priority No. 6 for purchase in the 2016 Annual Report of the Public Access, Open Space, and Natural Resources Preservation Commission. Reference: Comm. 125 Intr. by: Ms. Poindexter Ms. Poindexter moved to recommend adoption of Res. 87-17. Seconded by Ms. O'Hara. CHR. DAVID: Ms. Poindexter. MS. POINDEXTER: Yeah, good testimony from Ms. Susan Forbes. And, I think the resolution speaks for itself so I just ask for your support. If you have any questions, I think we have—Hamana is in Kona, so if any of the Council Members have any questions. CHR. DAVID: Mahalo, Ms. Poindexter. Council Members, any questions or comments? Nope? Hearing or seeing none, all those in favor of approving Resolution 87-17 please say "aye." The motion to recommend adoption of Res. 87-17 was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 9. Noes: None. Absent: None. Excused: None. Page 13 FC -5 March 7, 2017 CHR. DAVID: Mr. Clerk, you suggested we read it in first and then we recess? Where? Oh, in between. Oh, I'm sorry, I'm sorry. Please, 89-17? Page 14 FC -5 March 7, 2017 Res. 89-17: AUTHORIZES THE OFFICE OF THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE STATE OF HAWAII DEPARTMENT OF TRANSPORTATION Authorizes the Mayor to enter into an agreement to acquire four 14 -passenger vans, with a cost -match of 20 percent to be provided by the County. The vans would be used by the Department of Parks and Recreation's Elderly Activities Coordinated Services section to provide transportation for senior citizens over 60 years old and those with disabilities. Reference: Comm. 127 Intr. by: Ms. David (B/R) Motion to Approve: Ms. Eoff moved to recommend adoption of Res. 89-17. Seconded by Ms. Poindexter. (Note: At this time, Parks and Recreation Elderly Activities Operations Director Roann Okamura and Assistant Operations Director Coran Kitaoka came forward to address the members of the Committee.) CHR. DAVID: Discussion, please? Ms. Eoff. MS. EOFF: Thank you. I'm just hopeful that we can support this, and that some of us have already committed to utilizing some of our contingency funds to take up the slack for a needed match to support the van. I don't know the timing, but I think we have time. I know several of us have committed. I'm not sure more money is needed, but I think we should do all that we can at this point to support this program. Make sure our kupuna are able to get to where they're taken safely, and I think it adds to a quality of life here that we all want to support. So thank you, guys, for being here today. CHR. DAVID: Thank you, Ms. Eoff. Ms. Ruggles. MS. RUGGLES: Thank you. I have a question. CHR. DAVID: Thank you, Coran. Please state your names again. MS. OKAMURA: Roann Okamura, Elderly Activities Division Director. MR. KITAOKA: Coran Kitaoka, Assistant Director. MS. RUGGLES: Where will the vans service? MR. KITAOKA: Two vans are for East Hawaii, two for West Hawaii. Where we use it in those districts all depends on our scheduling and our needs, so basically two for west, two for east. Page 15 FC -5 March 7, 2017 MS. RUGGLES: Okay. Will it include Kona and Hilo, or is it intended to be island -wide? MR. KITAOKA: It's for island -wide usage. MS. RUGGLES: Great. What is the predictive? once you—if we do pass this, when will the program be in operation? MR. KITAOKA: Okay, so the state is looking at delivering the vehicles in May. MS. RUGGLES: May, okay. MR. KITAOKA: So as soon as we acquire the vehicles, it will be in operation. MS. RUGGLES: Okay. And how would an elderly person participate? MR. KITAOKA: They would just have to be 60 years old, and call our office at 961-8777, and get on the list for the respective district. MS. RUGGLES: Okay, great. That's all I have. MS. OKAMURA: It's also for disabled adults, 18 years of age and older, as well. MS. RUGGLES: Okay. CHR. DAVID: Identify yourself again. MS. OKAMURA: I'm sorry. Roann Okamura, Elderly Activities Division Director. There's a lot of points of entry, not only through that number, but other agencies as well that will refer. Like, HCOA (Hawai`i County Office of Aging) and other private entities in town. MS. RUGGLES: Okay, great. Wonderful. Thank you for the information. I yield. CHR. DAVID: Thank you, Ms. Ruggles. Mr. Kanuha. MR. KANUHA: Thank you. Just quickly. I know Ms. Eoff brought up the point of Council Members helping out with contingency fund, can you just explain that? I don't know if all the Council Members know exactly what that means? I know I do because I'm going to try to help out. Page 16 FC -5 March 7, 2017 MR. KITAOKA: So, basically each van would be the 20 percent match is approximately $13,000. At this point, we do have some money in our budget from contributions to cover that cost. MR. KANUHA: And what's left basically is, I think, two vans. Am I correct, that need help? MR. KITAOKA: Yes. From our budget, what we can contribute, I would say about $11,000 is left to cover. MR. KANUHA: Okay. And gladly, obviously this is needed in our communities and I am very glad to help out with contingency funds. Whether it was for East Hawaii, West Hawaii, no matter what, I think it's good that—I don't know what I even said. Yeah, glad to give the money, and I'm glad—I know you told me in the meeting, but how long have you guys been working on this with the state? MR. KITAOKA: These are actually two separate proposals that I submitted in 2009 and 2010. They're only coming to fruition at this point. MR. KANUHA: Okay, go right ahead. MS. OKAMURA: Do I identify myself again? Roann Okamura, Elderly Activities Director. So, this grant that we always got was from DOT (Department of Transportation). Usually, it's one a year. The state tabled this program, and we already had three requests in the works before we got this surprise. Wonderful call from them, couple months ago, that they were restating the program. They offered us an additional van, besides the three that we already applied for. MR. KANUHA: Awesome. Glad that it's finally coming to fruition. So, thank you. CHR. DAVID: Thank you, Mr. Kanuha. Mr. Chung. MR. CHUNG: Thank you. Wait, I need clarification here, okay? We had a discussion outside, but based on what happened right now, I need further clarification. You guys said you need $11,000 more but that's after the—because I know Ms. Lee Loy is going with $13,000, right? I think Ms. Eoff, maybe four; Ms. David, four; and Dru, four. So, after that $11,000? Okay. Okay, thank you. CHR. DAVID: Thank you, Mr. Richards. MR. RICHARDS: Like Councilman Chung, I need some clarification. So what is the total? Just run down the numbers for me real quick, please. Page 17 FC -5 March 7, 2017 MS. OKAMURA: So, Roann Okamura, Elderly Activities Division Director. So, the amount of matching funds we would need is $52,000, and to date we need an additional $11,000. MR. RICHARDS: Okay. MS. OKAMURA: That's a 20 percent match. MR. RICHARDS: That's a 20 percent match. So you're talking about $250,000 worth of van, total? MS. OKAMURA: Mhmm. MR. RICHARDS: Okay, so we're looking—it's very expensive equipment, yes. MS. OKAMURA: They're very expensive nowadays. MR. RICHARDS: Which is why jumping on the 80 percent, very understandable. Okay, thank you. I yield. CHR. DAVID: Thank you, Mr. Richards. Anyone else? Ms. Poindexter, go ahead. MS. POINDEXTER: Yeah, I just want to say thank you for your commitment to all of this, both of you. And what you do for our Elderly Activities Division, thank you so much. CHR. DAVID: Thank you, Ms. Poindexter. Ms. Lee Loy. MS. LEE LOY: Yeah, you know, Coran, Roann, I've known you guys long time, so this was an easy give. And, I challenge the rest of my Council Members who haven't give to give. This is for our kupuna. They gave. They worked. They've contributed to our community. We stand on their shoulders, and this is where we give back, so I challenge you folks to make that match. I yield. MR. KITAOKA: Thank you. CHR. DAVID: Thank you, Ms. Lee Loy. Mr. Richards, are you desiring to speak again? Mr. Chung. MR. CHUNG: I just wanted to say how much that sounded like a telethon, yeah? Page 18 FC -5 Vote on Res. 89-17: (Approved Recess: Reconvene: March 7, 2017 MS. LEE LOY: Yeah. MR. CHUNG: "I challenge you." I'm still not budging, I have no money left. CHR. DAVID: Thank you, Mr. Chung. If anyone else—no? Well, then I want to say thank you so much, to Roann and to Coran, for all that you do. I'm sorry, Ms. Lee Loy, I take your challenge but I think I only have $2,000 left. You can have everything I have left, and gladly. Oh, no, I already committed. But, no, thank you so much. I wish we could do more, and I really believe in—especially for citizens in my rural district, your service is so important, and at times it's very life -changing and life-saving, so no words can express our appreciation. So, thank very much for all that you do. Alright. Okay, Council Members, all those in favor of approving Resolution 89-17 please say "aye." The motion to recommend adoption of Res. 89-17 was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Thank you. MR. KITAOKA: Thank you. CHR. DAVID: And now, Mr. Clerk, do we read this in before I recess? MR. HENRICKS: Optional. CHR. DAVID: I can just recess the agenda or the final? Alright, this committee is in recess until after Environmental Management Committee this afternoon. Alright, we're in recess. At 12:10 p.m., the Chair called for a recess. The meeting reconvened at 6:17 p.m. CHR. DAVID: Alright, Council Members, we are reconvening Finance. Mr. Clerk, could you please read in Resolution 101, please? Page 19 FC -5 March 7, 2017 Res. 101-17: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF A MULTI -FISCAL YEAR AGREEMENT FOR FURNISHING GREENWASTE DIVERSION OPERATIONS IN WEST HAWAII AND EAST HAWAII FOR THE DEPARTMENT OF ENVIRONMENTAL MANAGEMENT The new contract would be for three years with the option of two one-year extensions, with an anticipated start date of July 1, 2017. Reference: Comm. 140 Intr. by: Ms. David (B/R) Motion to Approve: Ms. O'Hara moved to recommend adoption of Res. 101-17. Seconded by Ms. Poindexter. CHR. DAVID: Discussion, Council Members? Ms. Poindexter, go ahead. MS. POINDEXTER: Yeah, I'm a little concerned that this is in a way tied to the discussion that we're going to have on March 21 st, because I don't think we can have a good decision; unless we get good information, which that's going to happen on March 21St. Because if we vote on this, we push it to through to Council, but we're still we're saying it's okay to do that because we're approving the cancellation of the contract. That's the way I am kind of feeling at this point. So, I wouldn't mind having this, as well, postponed to the March 21St as well. So, can I make a motion to—oh, did you want to— MS. O'HARA: If you want to make a motion, go ahead. Motion to Postpone: Ms. Poindexter moved to postpone Res. 101-17 to March 21, 2017. Seconded by Mr. Chung. CHR. DAVID: Discussion on the postponement. Ms. O'Hara. MS. O'HARA: I respectfully disagree with that argument. We are going to have more information. But what we have to vote on is very clearly stated before us, it's a simple resolution. The reason I would not be supporting the motion defer it is there is a problem with this resolution as it's written, in that it excludes and omits a very important "Whereas" that was in Resolution 126, that passed in 2015. You have that before you. That important "Whereas" is the requirement for the contractor to control invasive species. Even if this resolution came before us, at the end of a ten-year contract and we were in need of going out and seeking a new contractor to deal with our greenwaste, mulching, I would still not be able to support this resolution as written because it lacks the requirement to control for invasive species. Page 20 FC -5 March 7, 2017 CHR. DAVID: So, Ms. Ohara, we're on the discussion of the postponement, so would you not— MS. O'HARA: I'm just saying I would not support a postponement. CHR. DAVID: Okay, thank you. Mr. Richards. MR. RICHARDS: I'm going to echo Councilwoman O'Hara's concerns. I think we have a lot of information coming at us, and I don't think this will applicable. Once we get the information before us, I think we just to park this one. So rather than postponing, I'm not going to support the postponement. CHR. DAVID: Thank you. Ms. Eoff. MS. EOFF: Yeah, but if we don't postpone it, I mean we can't vote it down anyways, we have to move it to Council. I think maybe it would be good to postpone it. You can either, at that point depending on how we move forward in our thinking, we would either need to amend it or make changes to it. But, I think you can leave it in postponement, while that other discussions happening. I think you'd have a better chance of working either with it or knowing what do with it after next meeting. MS. O'HARA: Thank you for the clarification. CHR. DAVID: Thank you, Ms. Eoff. Mr. Chung. MR. CHUNG: You know, I'm going to support the postponement, but, I understand where my colleagues are coming from. I'll tell you right now if we brought this up today, I'll vote against it. I'll vote it down. And if you guys are inclined to so vote without much discussion, let's just do it. And then it'll go to the full Council, you know, we could vet it there. But, I'm going to vote against this. But I just think they're kind of mutually exclusive, you know, this as well as the other thing that we have. It's one or the other. So, it's difficult for me to say—I couldn't vote "yes" on it, but I certainly can vote "no" on it today. But, I'd like to hear what everybody has to say about it. I'd be willing to withdraw my second and vote "no." CHR. DAVID: Thank you, Mr. Chung. Mr. Richards. MR. RICHARDS: I think we're all talking story the same way here, and we may have a procedural thing that we're talking about. The point is we'd have a lot of information coming. I don't think this is going to be appropriate. I think we need to park it, whatever that means. Vote it down, postpone it, whatever is the easiest. What I'm trying to do is minimize the paperwork for our Council here, because we know where we're going on this deal so whatever is going to minimize the paperwork, and sensitive to our staff. Page 21 FC -5 March 7, 2017 CHR. DAVID: Thank you. Thank you, Mr. Richards. Ms. Poindexter. MS. POINDEXTER: Yeah, I would rather—I'm supporting the postponement, of course I made the motion, but it's because I would not want to see this move up Council at this point and time. I would prefer it staying in at the committee level to have more discussion instead of pushing it up to Council; regardless if we vote it down, it still goes up to Council. I just don't want to take it up to that step yet, when I think it still needs to remain in a lot of discussion, and especially Councilwoman is not here, I think we should afford her that time to be able to voice her opinion at the committee level. CHR. DAVID: I agree. Thank you, Ms. Poindexter. Ms. O'Hara. MS. O'HARA: As we're bringing up time in regards to this postponement, I want to ask a question of Deanna Sako, who's here. Is that appropriate? (Note: At this time, Deputy Finance Director Deanna Sako came forward to address the members of the Committee.) CHR. DAVID: Yes. Ms. Sako, can you—Deputy Director Sako, thank you. MS. O'HARA: A lot hangs on our decisions here, Council. We have a company that's being told to close up shop, and that means termination of their employees and demobilization the sites, et cetera. It's a massive undertaking. We also have before us the resolution, which we're considering postponing, going after a new proposal, new Request for Proposals (RFP) for a multi-year contract. And yet, the timing of multi-year contracts in my experience, and perhaps Deanna can tell us what she knows about this, generally this has taken anywhere, from 14 months, from Council action to notice to proceed, up to 18 months for these types of complicated technical service contracts. We're being asked to approve a resolution with a three-month timeline, and I don't see this as totally realistic, but maybe you can let us know, Deanna, what is possible with Finance? MS. SAKO: Deanna Sako, Deputy Director of Finance. Most things are possible. But, yes, there's definitely been a wide range of different varieties of how long it's going to take, partly depends on how prepared the department is in terms of the specs and if they're ready to go, if they have a partial RFP drafted. But, we can make it happen when all things are ready. But, you know, it depends how long the specs and other things are going to take. MS. O'HARA: How long does it have to be out for the public to propose? Is there a minimum time or a maximum time? Page 22 FC -5 March 7, 2017 MS. SAKO: I want to say the minimum time is anywhere between ten days and two weeks. I don't remember. MS. O'HARA: It's a very short time? MS. SAKO: I'd have to look it up. I didn't bring that with me today. MS. O'HARA: Considering the complexity of a response to these types of proposals, I've always understood it to be more in the neighborhood of six to eight weeks for the respondents to put together a proposal. MS. SAKO: We've done anywhere from 30 days to 60 days, yes. MS. O'HARA: Thank you. Thank you. CHR. DAVID: Thank you Deputy Director. And, Ms. O'Hara, are you done? Anyone else wishing to speak to the postponement? Alright, then I will take a vote on the postponement. All those in favor of postponing this matter to the March 21St, committee date, right? Committee is March 21St, in Kona, please say "aye." Vote on Motion to Postpone: The motion to postpone Res. 101-17 to March 21, 2017, (Approved was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 8. Noes: None. Absent: Committee Member Lee Loy - 1. Excused: None. CHR. DAVID: And that takes care of our agenda for Finance. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. (There were none.) CHR. DAVID: Thank you, Council Members. May I have motion to adjourn? Page 23 FC -5 March 7, 2017 ADJOURN- There being no further business, at 11:27 a.m., Mr. Kanuha moved to adjourn MENT: the meeting. Seconded by Ms. Poindexter and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 8. Noes: None. Absent: Committee Member Lee Loy - 1. Excused: None. CHR. DAVID: This Finance Committee is adjourned. Mahalo, everybody. Approved: Ms. Maile Me eiros David, hair Finance Committee MD/na ,�--/D - / 7 (Date) Page 24