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HomeMy WebLinkAboutMIN FC 2017/04/04 2016-2018COMMITTEE ON FINANCE 7th Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii April 4, 2017 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 11:14 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 (came in later) Mr. Dru Mamo Kanuha, Member Ms. Susan L. K. Lee Loy, Member Ms. Eileen O'Hara, Member Ms. Valerie T. Poindexter, Member (came in later) 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 individual registered to speak in support of Communication No. 187, and came forward when called by the Chair: Kirk Shorte. CHR. DAVID: So now we will move forward. Mr. Clerk, Communication 7.7, please. COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 7.7: FINAL MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED JANUARY 31 2017 FROM THE DEPARTMENT OF FINANCE From Finance Director Collins Tomei, dated March 8, 2017, transmitting the above report pursuant to Hawaii County Charter Section 6-6.3(h). FC -7 April 4, 2017 Vote on Comm. 7.7: Ms. Poindexter moved to close file on Comm. 7.7. Filed Seconded by Ms. Eoff and carried by the following voice vote: Ayes: Committee Members Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 8. Noes: None. Absent: Committee Member Chung - 1. Excused: None. CHR. DAVID: Mr. Clerk, Communication 7.8. Comm. 7.8: FINAL MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED FEBRUARY 28 2017 FROM THE DEPARTMENT OF FINANCE From Finance Director Collins Tomei, dated March 16, 2017, transmitting the above report pursuant to Hawaii County Charter Section 6-6.3(h). Vote on Comm. 7.8: Ms. Eoff moved to close file on Comm. 7.8. Seconded by Filed 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. Absent: None. Excused: None. CHR. DAVID: Welcome back, Mr. Chung, and we haven't appointed you for anything again. MR. CHUNG: Yet. CHR. DAVID: Yet. Mr. Clerk, please, Communication 14.8. Comm. 14.8: REPORT OF CHANGE ORDERS AUTHORIZED: FEBRUARY 1 - 15, 2017 From Finance Director Collins Tomei, dated March 6, 2017, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Motion to Close File: Ms. Poindexter moved to close file on Comm. 14.8. Seconded by Ms. Eoff. CHR. DAVID: Discussion, Council Members? Mr. Kanuha. MR. KANUHA: Just looking for Finance? Page 2 FC -7 April 4, 2017 CHR. DAVID: He's pointing out. Oh, is someone here? MR. KANUHA: Deanna. CHR. DAVID: Oh, there she is. (Note: At this time, Deputy Finance Director Deanna Sako came forward to address the members of the Committee.) MR. KANUHA: Hi, Deanna. CHR. DAVID: Hi, Deanna. We were calling you. MR. KANUHA: Perfect timing. CHR. DAVID: Perfect timing. MR. KANUHA: We're currently on Communication 14.8, Change Orders. MS. SAKO: Okay, I've got the right one. Yes? MR. KANUHA: Just, can you explain to me the construction monitoring and inspections of the Hilo Wastewater Treatment Plant (WWTP) Outfall Repairs? It says original contract amount for $243,000. And because there's a time extension due to weather delays, related to storm and high surf, change order amount of $392,256, which is 137 percent difference from the original contract. MS. SAKO: Yeah. MR. KANUHA: Is that normal to pay them that much more just because it's due to weather? MS. SAKO: No. Deanna Sako, Deputy Director of Finance. No, that's not normal, just for like the weather. I'm guessing there was more to it than this. I think this has been an ongoing project with a lot of changes and a lot of special requirements, because it does relate to sewer and the ocean, and wanted to keep everything safe. I can get more information for you from DEM (Department of Environmental Management). MR. KANUHA: Yeah, please. Because, I mean, just the time extension, due to weather, kind of doesn't make that much sense for that huge change order. MS. SAKO: Yeah. Yeah, no. Yes, I'll double-check on that for you guys. MR. KANUHA: Okay, thank you. Page 3 FC -7 April 4, 2017 CHR. DAVID: Thank you, Mr. Kanuha. Anyone else? Hearing or seeing none, all those in favor of filing Communication 14.8 please say "aye." Vote on Comm. 14.8: The motion to close file on Comm. 14.8 was carried by the Filed 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 14.9, please. Comm. 14.9: REPORT OF CHANGE ORDERS AUTHORIZED: FEBRUARY 16 - 28, 2017 From Finance Director Collins Tomei, dated March 15, 2017, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Vote on Comm. 14.9: Ms. O'Hara moved to close file on Comm. 14.9. Seconded Filed by Mr. Richards 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 187, please. Comm. 187: MANAGER -CHIEF ENGINEER'S REPORT FROM THE DEPARTMENT OF WATER SUPPLY RELATING TO THE IKI STREET WATER IMPROVEMENT DISTRICT The report details a project for the installation of a water system for the properties along Iki Place, as requested by Hawaii County Council Resolution No. 634-16 (2014-16 term). Motion to Close File: Mr. Richards moved to close file on Comm. 187. Seconded by Ms. Lee Loy. (Note: At this time, Water Supply Manager -Engineer Keith K. Okamoto and Civil Engineer Ryan Quitoriano came forward to address the members of the Committee.) Page 4 FC -7 April 4, 2017 CHR. DAVID: We have here our Manager and Chief Engineer. Welcome, Mr. Okamoto. MR. OKAMOTO: Yes, Keith Okamoto, Manager -Engineer, Department of Water Supply; and to my right I have Ryan Quitoriano, Project Engineer, with US. CHR. DAVID: Aloha and welcome. And I believe you want to give us a brief description and breakdown of what this project is? MR. OKAMOTO: Sure. CHR. DAVID: And I'm sure we'll have questions. MR. OKAMOTO: Yeah, basically this is another request for an Improvement District Project, to install water infrastructure in an area in Kona. Basically, as I believe Mr. Shorte described, coming off of Aniani Place, which goes into a private road called Iki Place. There's 18 lots in there, and majority of the lot owners currently have water service, but what we call "out of bounds." So their meters are up at the highway, up mauka, and they run their private lines from the highway down to their property. About how many -700 feet makai. So, you know, that's a hardship. Plus, they don't have—what this project would also provide is fire protection. There will be fire hydrants included with this project. Basically, that's what the report says. We gave it our best estimate. And I understand—some of his questions are very valid, so what we can do is we can take—when they're submitted, we can actually draft the response to each of those questions and get it to you folks. But, I did hear a concern that there may be questions as to the validity of the cost estimate. So we want to assure the residents and the Council that, really, the assessment will be based on the actual cost of the project, and there's no profit to be made as you all know. So basically it'll be what turns out from the bids. Whatever the professional services and things like that, we try to utilize people who are familiar with the area, who can design with the proper experience, base on professional services, procurement that's basically procurement law regulated. So, if there's any questions from the Council? CHR. DAVID: Thank you, Mr. Okamoto. I see lights. Ms. Eoff. MS. EOFF: Thank you. So, yes, this is my district, and I introduced the resolution to start this process. Page 5 FC -7 April 4, 2017 When the report came out, and it was shared among the lot owners, it did generate a lot of questions. And I think if you would respond to Mr. Shorte's questions when you can, that would be helpful. MR. OKAMOTO: Okay. MS. EOFF: I appreciate the work you've done so far. I know it's a very complicated process to establish a Water Improvement District, but step-by- step. And hopefully we can come up with an overall price that the lot owners will still want to pursue, but I know that's all part of the next steps. But, thank you. MR. OKAMOTO: Sure. CHR. DAVID: Thank you, Ms. Eoff. Mr. Richards. MR. RICHARDS: Just a quick question. Good to see you again, Keith. Thanks for being here. For my own education, for the assessment, just—don't give me a number. How do you go through that process, because obviously this is fairly expensive? And we're dividing by 18, how do you come up with an equitable number that works for the people? MR. OKAMOTO: So in previous improvement districts, what normally helps us out and helps the—bottom line, it helps the residents out, is really the funding source. And in the past we've utilized the USDA (United States Department of Agriculture) Rural Utility Fund Source. Really, if a subdivision has a median household income that qualifies under the USDA program to get the maximum grant portion, that really helps everybody out. So, we were just paying back on the loan portion. In this case, that assessment really hasn't been done at this point, so it's part of the next steps. USDA has their own mechanisms on how they determine what is the appropriate median household income. I know in other improvement districts we actually did an income survey of the actual subdivision. So, I envision similar processes on this project moving forward as well. So, we are all hopeful that there would be at least some portion of this that can qualify for grant, which will reduce the actual payback amount by everyone. MR. RICHARDS: And, follow-up? CHR. DAVID: Yes, go ahead. Page 6 FC -7 April 4, 2017 MR. RICHARDS: Rough numbers from track records in the past, you hope for a 25 percent grant, 50 percent, somewhere in there? Or, do you have any best estimate? MR. OKAMOTO: Do we have any best estimate at this point? Yeah, not currently for this. MR. RICHARDS: Okay. MR. OKAMOTO: Each subdivision is different. I understand that USDA has some mechanism that they determine, and it's really up to them. So we pushed to get the maximum grant that's possible, of course, in any area. We think the income survey is saying what's the actual median household income of the particular project area is the most accurate, so hopefully they can use that. MR. RICHARDS: Okay, thank you. CHR. DAVID: Thank you, Mr. Richards. Mr. Kanuha. MR. KANUHA: Thank you. Just to follow-up on that. Are they going to take that specific household income seriously, or are they continuing to just go with the surrounding area? Because wasn't that where we're having the problems, where they want to improve their water systems but the surrounding areas have all the improvements? In specific cases, in Kona, there's these areas that have—are very expensive, the properties are up there, and they have everything already taken care of. But there's like 30 houses in this one private—I'm talking "Nani Kailua" on Nani— MR. OKAMOTO: Nalani Street? MR. KANUHA: Nalani Street water improvement. Question, will the individual households be—you know, with the income survey, are they going to go off of that criteria or are they going to still continue to do the area, the subject area and surrounding properties to gauge whether these guys can afford it or not? MR. OKAMOTO: Maybe—Ryan, you want to share what information you've gathered so far? MR. QUITORIANO: Ryan Quitoriano, Department of Water Supply. So from what I understand, I guess USDA does have some type of income survey criteria that they use. We'll be ending up using an organization to perform that income survey, and I think they're probably the better people who can answer that question. Page 7 FC -7 April 4, 2017 But as far as what numbers they take, from my understanding when we did the Kona Ocean View Properties Improvement District, I think we used the actual numbers from the residents themselves instead of the census data. MR. KANUHA: Okay. Okay, good. Thank you. CHR. DAVID: Thank you, Mr. Kanuha. Anyone else? No? Well, then I really want to thank Mr. Okamoto and Mr. Quitoriano for coming here today. And I really want to thank you because I had the pleasure of working with Mr. Okamoto and the Water Department on the Water Improvement Districts. It's a long drawn-out process; it's a very meticulous process. So I congratulate you guys and wish you well with this new project of yours, okay? MR. OKAMOTO: Thank you. Yeah, so we'll respond to the questions that Mr. Shorte— CHR. DAVID: The questions, yes. MR. OKAMOTO: —and get it to you folks. CHR. DAVID: Thank you very—oh, go ahead, Mr. Kanuha. MR. KANUHA: I know I could probably do it later. But is this the best—how we're doing all these water improvement districts, is this the best direction, the best way we're doing this, or is there mechanisms, other ways that you guys see a better way of doing it? MR. OKAMOTO: Yeah, I think based on the past history; this appears to be one of the best mechanisms that we can see. To utilize the options available to the County and to the Department of Water Supply, to get standard infrastructure into these places where they're lacking. MR. KANUHA: Okay. MR. OKAMOTO: If we find something better, we'd propose that. MR. KANUHA: Okay, thank you. CHR. DAVID: Thank you, Mr. Kanuha. Alright, thank you again, gentlemen, for coming. So, all those in favor of filing Communication 187 please say "aye." Page 8 FC -7 Vote on Comm. 187: Filed April 4, 2017 The motion to close file on Comm. 187 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, Resolution 130-17. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 130-17: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR LEASE OF REAL PROPERTY Authorizes the Mayor to enter into a two-year lease agreement with Maui Varieties Investments, Inc., at a monthly cost of $1,796.24. The Hawaii Fire Department utilizes the premises located at 95-1163 Ka`alaiki Road for its Nd`dlehu Emergency Medical Services Station. The agreement includes a two-year renewal option. Reference: Comm. 183 Intr. by: Ms. David (B/R) Vote on Res. 130-17: Ms. O'Hara moved to recommend adoption of Res. 130-17. (Approved) Seconded by Ms. Lee Loy 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: Thank you very much. Mr. Clerk, please, Bill 23. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Page 9 FC -7 April 4, 2017 Bill 23: AMENDS ORDINANCE NO. 16-72, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30 2017 Appropriates revenues in the Fund Balance Reserved for Liquor Control account ($20,000); and appropriates $10,000 to the Public Programs account, and $10,000 to the Travel/Conferences account. Funds would be used to provide airfare for trainers and materials for the Being Respectful and Valuing Everybody program and for travel expenses for three staff members and two liquor commissioners to attend the 2018 National Conference of State Liquor Administrators in Denver, Colorado. Reference: Comm. 182 Intr. by: Ms. David (B/R) Vote on Bill 23: Ms. O'Hara moved to recommend passage of Bill 23 on A roved first reading. Seconded by Ms. Lee Loy 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: So, we're done. Motion to adjourn, please? ADJOURN- There being no further business, at 11:30 a.m., Ms. O'Hara moved to adjourn MENT: the meeting. Seconded by Ms. Lee Loy 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. Page 10 FC -7 April 4, 2017 CHR. DAVID: This meeting is adjourned. Thank you, everybody. Approved: i Ms. Maile , Chair Finance Committee MD/na (Date) Page 11