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HomeMy WebLinkAboutMIN COUNCIL 2017-04-05 2016-2018 County Council th 9 Session 25 Aupuni Street April 5, 2017 INVOCATION: Captain Celestine Ruwethin of Hilo Salvation Army Temple Corps gave the morning invocation. CALL TO order at ORDER: 9:08 a.m., in the Council Chambers, Hilo, by Ms. Valerie Poindexter, Chair. ROLL CALL: Present: Ms. Valerie Poindexter, Chair Ms. Karen Eoff, Vice Chair Mr. Aaron Chung, Member Mr. Dru Mamo Kanuha, Member Ms. Susan L. K. Lee Loy, Member Ms. Maile Medeiros David, Member Ms. Jennifer Ruggles, Member PLEDGE OF The Chair directed the Council to the next order of business, Pledge of ALLEGIANCE: Allegiance. (At this time, Ms. Lee Loy led the Council in the Pledge of Allegiance.) PETITIONS, The Chair Pro-Tem directed the Council to the next order of business, Report of MEMORIALS, Credentials Committee. CERTIFICATES OF MERIT, AND EXPRESSIONS OF Merit to Patty Pinto, in recognition of all (CERT) Community Emergency CONDOLENCE: Respons Recess: At 9:17 a.m., the Chair called for a recess. Reconvene: The meeting reconvened at 9:19 a.m. -9 April 5, 2017 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: Rene Siracusa: Res. 124-17 (Comm. 174), in support. Ralph Boyea: Res. 124-17 (Comm. 174), in support. (representing Puna Community Medical Center) Hart Miller: Res. 124-17 (Comm. 174), in support. (representing Puna Community Medical Center) Ken Melrose: Res. 102-17 (Comm. 142), in support. (representing Applicant Maryl Group) : Res. 134-17 (Comm. 190); in opposition; and Res. 135-17 (Comm. 191); comment. Joyce Alberta Folena: Res. 101-17 (Comm. 140); and Res. 124-17 (Comm. 174); comment; and Res. 134-17 (Comm. 190); in opposition. Gregory T. Smith: Res. 101-17 (Comm. 140); Res. 124-17 (Comm. 174); and Res. 135-17 (Comm. 191); comment; and Res. 134-17 (Comm. 190); in opposition. Gail Clarke: Res. 129-17 (Comm. 180), in support. (representing Arts and Sciences Center) Dean Au: Bill 10 (Comm. 81), comment. Council of Carpenters) Kihei Ahuna: Res. 135-17 (Comm. 191), in opposition. Farmers Association) Robert Yamada: Res. 135-17 (Comm. 191), comment. Farmers Association) Ahiena Kanahele: Res. 134-17 (Comm. 190), comment. Elizabethanne Masaoka: Res. 135-17 (Comm. 191), in opposition Page 2 -9 April 5, 2017 Stephanie Salazar: Bill 10 (Comm. 81); comment; and in opposition. Russell Doi: Bill 10 (Comm. 81); comment; and in opposition. Jesse Keone Potter: Res. 119-17 (Comm. 169), comment and in support. David Heaukulani: Res. 126-17 (Comm. 177), in support. Rhoda Simeona: Res. 135-17 (Comm. 191), in opposition. Luahiwa Namahoe: Res. 135-17 (Comm. 191), in opposition. April Lee: Res. 123-17 (Comm. 173); comment; and (representing Jasmin and Res. 135-17 (Comm. 191; in support. Lance McCracken-Holualoa Farmers) Margaret Wille: Res. 122-17 (Comm. 172); Res. 134-17 (Comm. 190), comment; and Res. 101-17 (Comm. 140), in opposition; and Res. 135-17 (Comm. 191), in support. Kat Culina: Res. 124-17 (Comm. 174), in support. Mitch Roth: Res. 120-17 (Comm. 170); Res. 121-17 (Comm. 171), in support; and comment. Wallace Ishibashi: Res. 126-17 (Comm. 177); in support; and (representing Prince Kuhio) Res. 135-17 (Comm. 191); in opposition. Brenda Ford: Res. 101-17 (Comm. 140); in opposition; Res. 134-17 (Comm. 190); and Res. 135-17 (Comm. 191; in support; and Bill 10 (Comm. 81); comment. Recess: At 10:53 a.m., the Chair called for a recess. Reconvene: The meeting reconvened at 11:16 a.m. Page 3 -9 April 5, 2017 Change Order of As directed by the Chair and with no objection from the Council Members, the Business: following items were taken out of order: CHR. POINDEXTER: I would like to call this meeting back to order. At this time, we are going to be taking several items out of order since we have the heads that we are probably not going to be able to deal with any of that until after eed to Police Officersbut the people are here from Keaukaha and I think before Department Heads we want to make sure and take care of the people. So, just to let the Department Heads know, with no disrespect to you, that we will ask you to come back after lunch for the other items. We are going to be taking Resolution 134, 135, and then 101 because they are all intertwined. So at this time, Mr. Clerk, Resolution 134-17. Res. 134-17: AUTHORIZES THE EMPLOYMENT OF SPECIAL COUNSEL TO PROVIDE LEGAL SERVICES REGARDING THE CANCELLATION OF THE HAWAIIAN EARTH RECYCLING, LLC Authorizes the employment of special counsel, at a cost of no more than $185 per hour, not to exceed $50,000, for a period not to exceed six months. Reference: Comm. 190 Intr. by: Mr. Chung Waived: FC Note: Requires 2/3 vote of the entire membership, pursuant to Section 6-5.5, Motion to Approve: Mr. Chung moved to adopt Res. 134-17. Seconded by Mr. Kanuha. CHR. POINDEXTER: Council Member Chung. MR. CHUNGa lot of discussions with our Corporation Counsel and, really, no disrespect to him or the continuation of the contract that was cancelled by the administration at the adviceor utilizing the advice of the Corporation Counsel. Page 4 -9 April 5, 2017 Now, what troubles me is that during an Executive Session, held two weeks ago, the transcripts of which I think will be made public per a request by Mr. Richards, I am very concerned that the County Council, the County, and the taxpayers of the County are going to be on the hook for a substantial amount of money if we pursue this course of action, specifically, canceling the contract on a clause, I know, Wallace Ishibashi was here earlier and he said they could the $50,000 that building. But, really, l due respect to this speaker here. I understanding the ramifications of the actions of the administration which, in my opinion, really hurt all of us; the taxpayers. So, I just wanted a second opinion on this and only because we pass it today, if the administrative responsibilities of hiring that person or arranging for the hire of that person to be with the Council Chair and the Chair of the Environmental Management Committee. money. That is certainly not my intent. It is just to hold it in a bin to make sure that the administration follows through on its stated intent of negotiating with the Community are still here because we are listening. But I just want your support. going to be $25,000, but I thought $50,000, might be a little bit better. It gives us a little more leeway. Now, several speakers criticized that amount $50,000; why and pitched $50,000 for the hiring of special counsel which was going to be our share of a statewide contribution from all of the counties and the State; over to be our point person in our Union looking at more than one negotiation over the next several months, $50,000, so if the Corp Counsel is going to pitch $50,000 for that purposeoh, and incidentally Jo, I did ask for a memo regarding how we judge the efficacy of that money spent. $50,000 for something like that, $50,000 to protect millions of dollars of the of you recall what was said in Executive Session and in public. I think all of you Page 5 -9 April 5, 2017 share the same concerns with me, regarding our potential liability. If you share those concerns, please support this. Thank you. CHR. POINDEXTER: Thank you, any other questions or discussion? Council Member Richards. MR. RICHARDS: Thank you, Chair. Thank you, Councilman Chung. I agree with your assessment and rai going to contract. This means we have the ability to contract and if things get off s perspective, and being able to protect the greater amount of liability by having some good advice, so. I see your point CHR. POINDEXTER : Thank you, Chair. I am also going to be Resolution 134 because, I think, it sends a strong message. I hoped and I sincerely hope we will not need to expend any money. And if the Mayor moves forward in good faith to renegotiate the contract and take care of the location issue, which I am totally understanding. We will not need to expend this money. But, we need to hold it in reserve. The reason I would say that is there is some history here, although many may not know the termination for convenience clause is a State procurement code requirement for Government contracts. It has never made it into a Court of Law in terms of a Case Law. So, any cancellations that have been attempted by using the clause, a termination for convenience, have been settled out of Court. And in those settlements, we can see that the contractor is awarded the cost incurred u to that point. So, yes, if negotiations fail and this does go to Court, the County could be held liable for many millions of dollars, potentially. And the Council has had a very strong opinion about the cancellation of this contract, which was authorized originally by the Council two years ago. I understand there are things that need to be worked out, location being one, timeline being another. I think this can all be worked out properly in negotiations and yet, if not, the Council should not be faulted for attempting to do this in the right way. And in that event, we would need separate counsel from Corporation Counsel. So, in that regard, I would be supporting this resolution. CHR. POINDEXTER: Thank you. Council Member Eoff. MS. EOFF colleagues who have spoken. Something else that comes to mind is the opportunity to thank the administration for, I believe, the Council having taken a strong position in the last few weeks, has probably led to him reconsidering his movement going forward, and making this on his part good faith step towards renegotiating and looking at the contract, if it can be modified and working with Page 6 -9 April 5, 2017 the contractor. I think, we as a Council have stuck together with this opportunity to urge the Mayor to do that and I think by supporting this resolution, we continue to take that strong position. And I think that should help if this is our goal, to that we have the option and if bypassing it can serve for that purpose, I will support it. CHR. POINDEXTER: Thank you. Council Member David. MS. DAVID: Mahalo, Chair Poindexter. Thank you, Mr. Chung. I think, based on our prior discussions both in Executive Session, it really speaks to this bodies desire to fulfill its responsibility to the community, and more so our legal liability in the form of potential damages. I think both of that combined. This in my eyes, is a unified attempt to do something that will engage not only the community, it will engage this body, this the right way. And, I believe that we will definitely and I agree with Mr. Chung, if this was litigated we need our own counsel to protect our own interests because in my experience, contracts are cancelled because there is some sort of default on one party or another. At this point in time, I dont see anything except that it needs to be amended and further work needs to be done to address issues that have not been addressed. So I applaud the Mayor for agreeing to work with everybody. I think that was, in my opinion, what this body was after. And it was a hard decision to come to, but the fact that were all unified in our position in looking out for the best interests of the community at hand. That is our job and our responsibility. For that reason, Mr. Chung, thank you very much. I will support your resolution. And hope we dont use it, so we can, hopefully, help or Kamehameha Building in other ways. Mahalo nui. CHR. POINDEXTER: Council Member Lee Loy. MS. LEE LOY: Thank you. I do have a question. I guess it might be for Mr. Kamelamela. re reading information in the paper and were assuming that the Mayor has now rescinded his termination letter of February. So, has the contract been terminated? (Note: At this time, Corporation Counsel Joseph Kamelamela came forward to address the Council.) MR. KAMELAMELA: Good morning. This is Joseph Kamelamela, Corporation office. No, the notice to proceed has been issued so that letter hasnt been rescinded. I did want Council to know the parties have been meeting. What has shown up in public is accurate from what I know, and we again next week Wednesday. There are issues that I have listened to here. So the interest is for everybody, you know, not only the County and the Mayor, but also Page 7 -9 April 5, 2017 ere all going towards the same goal and the same mission. We want a better contract. Thats the goal. Does that answer your question? MS. LEE LOY: It does. Just for clarity, the termination letter of February stands and you guys are in renegotiation? MR. KAMELAMELA: Yes. Were in renegotiations. MS. LEE LOY: Thank you, Mr. Kamelamela. MR. KAMELAMELA: Im using her terms. The part is get it together, they realize what is at stake. So personally, discussions are helpful and fruitful so far. CHR. POINDEXTER: Thank you. MR. KAMELAMELA: Does that answer your question? MS. LEE LOY: Yes, it does. And this is specifically for my community. The way things have transpired, sending the message about the composting contract and the two parts that are contained in the contract. One is the enhanced mulching and two is the location of the facility. And it is very clear from my have all of the conversations that we have had and there are a number of extenuating circumstances that could lead to multi-million dollar damages. For that reason, I need to have somebody else evaluating that for my community. for procurement policies, there is just so many nuances, and like Mr. Chung said, honest candor dialogue to ensure that the community is put first before dollars, CHR. POINDEXTER: Okay, Council Member Kanuha. MR. KANUHA: Thank you, Madam Chair. I agree with everything that Ms. Lee Loy said before the Council, we have been talking about this as being community first. I applaud you for your efforts in trying to make sure Keaukaha Community Association and the residents that live there are heard loud and clear, so mahalo for your representation of the community. Page 8 -9 April 5, 2017 Speaking specifically towards this resolution, I think its as you stated, this is community first. We want to make sure that all of these negotiations are going to be damaging to not but this entire island and the taxpayers or the people we represent. So I definitely will vote for this resolution just to see, as stated before, or wt mean its going to happen but its there in our resources in our pocket that we can use if we feel that negotiations arent up to our standards; arent up to community standards. So, I will be supporting this resolution. going to state that Im kind of confused what the process is involved in cancelling the contract, renegotiating contract, having a resolution, having other corp counsel. I dont know what is going on to be honest, all I hear is what is happening in the paper and its really confusing as to what is happening. I know it might be in the language of the contract, but cancel a contract? Then I hear in the paper the Council voted down a resolution to ask for another contract and its still here that we have to deal with today then, we come back and I hear in the paper going to go back to the original contract that was cancelled and renegotiate and amend and I dont know how it works out. Somebody someone smarter than me knows what is going on, but I hope we know what is going on and maybe someone can explain from the Council and try to keep me informed about the processes involved. Oh, Mr. Kamelamela? Okay. It might not be for this specific discussion for this resolution, but I just want to throw that out there how we go through the process and how it all works out. I have no idea and if I have the community. So, I just want tobefore we proceed, maybe we can get an explanation of what is going on. Thank you. CHR. POINDEXTER: Thank you, Council Member Ruggles. MS. RUGGLES: Thank you. I dont know where to start but I echo Mr. Kanuhas sentiment I do wish thatIm concerned about the impact that this resolution could have on our ability and our relationship with the administration as it is. I wish we had more dialogue and discussion with the administration on what is happening and that we didnt always have to read about it in the paper afterwards. And I also want to let the public know that this resolution is based on executive session that happened two weeks ago, that were not allowed to talk about in public. But it was that executive session that led us to believe it looks clearly as a body, to think this resolution is justified so that we can make the best and the most sound decision for the community on this. Thats all I have to say, thank you. CHR. POINDEXTER: , Council Member Chung. Page 9 -9 April 5, 2017 MR. CHUNG: Thank you, Madam Chairman. I wasnt going to talk again but there were some good points. First of all, Ms. Ruggles talked about the communication issue and I agree with you 100 percent. I think I stated it at another meeting when Mayor Kim had earlier said that one of his goals is to improve communication with the Council, but everything we learn is from what we read in the newspaper. Thank you very much to the media. In fact, I will tell you guys a funny story. I met with the Mayor on Friday or Thursday or whatever it was. Had a meeting with him, two hours later I was informed by the media that he had issued a press release he never told me anything about that. m sure it didnt take him five minutes to prepare the press release, he could have said Aaron a press releaseopen up negotiations again. Its kind of disheartening from time to time, if you try to put yourself in my place. With regard to Mr. Kanuha are. He talked about three difference resolutions. But I would just say, to me, if I could control the world, we would get rid of this administration initiated resolution, which calls a new green waste operations agreement; thats out. Now, that leaves us with two more. Of course, we can urge Mayor Kim to renegotiate or rescind the contract termination, which is still relevant based on what Ms. Lee Loy asked of the Corporation Counsel. But getting back to this special counsel situation, let me give a little bit more background. As most of you have read, the contract is being terminated using a clause called termination for convenience. Now, think what kind of world we would have if you can always cancel contracts just out of convenience. But it is in there, but there are certain conditions before you can exercise that termination clause, as you can imagine. This whole termination clause was developed many years ago in the 1800 hundreds by the Federal Government. The Federal Government saw the need for something like this in their contracts, particularly as they relate it to military contracts because right after a major war ends, you dont need to turn up things, to get products that are needed in a war you dont need them anymore. So hen they saw a need for it and put it in all of their contracts as required and the State has followed through. Now, most if not all of the case law regarding this matter is all Federalt have any State cases involving this, but the tate has, also, similarly put in a requirement that all of our State and County contracts shall have this clause in there. But they did by administrative rules say what conditions needed to be met before you can exercise them. And I believe we have not complied with those and thats why were on the hook. You cannot just willy nilly say, its our convenience so we are going to terminate this contract. We cannot do that. We dont live in that kind of world. So, thats one way with regard to how its going to be administered, I cannot really answer that. Page 10 -9 April 5, 2017 There is one more wrinkle to all of this; actually two more. First, I think it might be a stretch, but it could be argued, that because the Council specially authorized this contract, not the specifics or location or anything like that. It was not site specificour resolution, but because we specially authorized this, it could be argued that the Mayor couldnt unilaterally terminated this thing. He should have come back to the Council. The genesis was here. He should have done that or at least open up some kind of discussion. That is another legal argument we could make. The third one is something that I brought up before. If the administration, and I donone digging their heels in because of this, but if the administration continues to ignore the clear, to me, liability issues were facing, the taxpayers of the County are facing, and we lose, then we need special counsel to go subrogation rights against those persons who were involved in all of this. And its certainly not going to be us. So, hopefully that lays out some of your concerns. CHR. POINDEXTER: : Thank you and thank you, Councilman Chung for some history makes sense. I have two points here and the first is along the lines of what Mr. Chung was saying about the termination for convenience requiring certain that bothers me, and the reason Im going to support this resolution, is that while the Mayor is entered into negotiations to perhaps bring this contract back, were not sure of that at this point. As Mr. Kanuha asked, what stands is the termination notice. That is still the last official word on this contract. Now once you send out a termination notice if you are reconsidering rescinding that termination notice, then you need to enter into negotiations to figure out the modifications of the contract that are necessary to be able to stay on that existing contract that was generated by the RFP. My understanding is that may be what is happening in the negotiations that Mr. Kamelamela referred to, but and we donhat is happening. We are, again, learning things from the newspaper and in the article that appeared four days ago by Nancy Cook-Lauer, who is in the back corner there, and a very respected journalist. It says that Kim said he told the Council in a public meeting that his administration was going to sit down with the contractors and try to reach resolution been at these public meetings and that did not happenatched the tapes a few times or the recordings a few times. That did not happen. So, Im a little surprised to read that in the paper. Furthermore, it said Kim said neitherthat ferring to Resolution 101, where we voted that down in our last meeting. Kim said neither that nor Mr. Chungs upcoming resolution had an impact on his decision to reopen the contract. Well, Im sorry, but this contract initiated per Council action. And t appreciate the lack of consideration expressed in that statement. I am very happy that negotiations have been picked up and started again. But, I would Page 11 -9 April 5, 2017 hope that the administration gets the idea that the Council does have a lot at stake here in this renegotiation. Because if those negotiations fail and it ends up in court we do not want to be on the hook because we have said all along, this contract needs to be modified, the location isnt appropriate, the time line needs to be rolled back. The County is not ready to deliver on its obligations in this those negotiations fail because they are not performed in good faith, then were on the hook and thats why I support this resolution. The other reason is in public meeting in my committee, Environmental Management Committee at our last meeting in Kona. I was really taken aback when Mr. Kamelamela said to us, the Council, that if we did not enter into executive session to entertain a report that had been provided to us, which came from Mr. Kucharski of DEM (Department of Environmental Management) and also Ms. Belinda Hall, who was previously with Corporation Counsel and was still with Corporation Counsel at that time, that he would be leaving the room. As Chair of the Committee, I felt a little bit abandoned. I mean, there was no Deputy Corporation Counsel, and if he had gotten up and walked out we would not have had an attorney present. So, I think, for that reason alone we need a resolution passed so we have a resort should we need it if it comes to that. So, Im just explaining some of the process here and I hope that helps with the other Council Members who are a little confused. Thank you. CHR. POINDEXTER: Thank you. Council Member David. MS. DAVID: Thank you, Council Chair. Mrs. Lee Loy, I really appreciate you asking our Corp Counsel that question. Because although we are very optimistic about the intention of our Mayor to renegotiate, the reason why this resolution is important and the need for us to have the ability to hire counsel is given the fact that termination letter has not been withdrawn or another letter saying that its no longer in effect. I think its critical that we approve this resolution for all of the reasons stated and thats why I appreciate you focusing on that issue. The newspaper led us to believe we wouldnt have anything to worry about and everything is fine and everybody is going to work together. But, until that termination letter is withdrawn or cancelled, I think, we have to be veryunless we say makaala and make sure that everything is in its place before we take action. So, this is the safety net I feel is critical for this body to have, at this point in time, and I appreciate the communitys indulgence to go through this process because we have to. We cannot avoid it so, mahalo for your support. Thank you. CHR. POINDEXTER: Thank you, Council Member Chung. MR. CHUNG: Yeah, just one last thing. A lot have been said about our relationship with our Corporation Counsel. You know, he really is put in a tough situation, I think we all know that, historically, and Ms. Ford brought it up earlier. Page 12 -9 April 5, 2017 you know, in between the administration and the Council, and Corporation Counsel is always put in the this is really a function or a reflection be corrected. But, now, I want to say one thing on behalf of Joe. During our last time in executive session, I did ask him, Joe all this time it seems that you have been, you know, representing the administration. That may be true or not true but could you please, now, represent us, take our concerns back to the Mayor, and try to impress know you to say yes it happened that way, but I know we asked him to do that and next thing we know, the Mayor is opening up negotiations again. Maybe we should be giving thanks to Joe, but right now, we have to do what we have to do. And I newspaper blurb that attributed to Mayor Kim. I looked at that presentation over and over, and I had my staff look at it, too, and there is nothing in there that remotely relates or indicates that he was willing to renegotiate the composting. Thank you. CHR. POINDEXTER: Thank you. Seeing no other discussion, I would just like to say that I agree with all of my colleagues and I will be supporting this resolution. I just want to thank, Council Member Chung, for putting it forward. So, at this time, all those in favor or Resolution 134- Vote on Res. 134-17: The motion to adopt Res. 134-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Okay, now we go to Resolution 135-17. Page 13 -9 April 5, 2017 Res. 135-17: URGES THE HONORABLE MAYOR HARRY KIM TO RESCIND THE TERMINATION OF THE CONTRACT ISSUED PURSUANT TO THE REQUEST FOR PROPOSAL NO. 3298: FOR FURNISHING AND IMPLEMENTING AN ORGANICS DIVERSION PROGRAM IN Contractor, dated February 16, 2017, to bes management goals are achieved. Reference: Comm. 191 Intr. by: Waived: FC Motion to Approve: . 135-17. Seconded by Ms. David. CHR. POINDEXTER: MS. O: Thank you, Chair. We heard a lot of testimony about 135-17 both, pro and against. For those that are still here that testified against this resolution, I want to make it really clear that this is not intended to rescind the contract as such that we can continue business as usual, meaning putting the going to call it the hot compost, in vessel composting, the hot compost portion of this contract, in a location that going to negatively impact . We need to go back to the starting point and conduct and EA (environmental assessment) or EIS (environmental impact statement) if that is indeed called for properly. And in saying properly, you have to identify multiple locations of interest when you start with an EAEIS process and not presume that a single location is going to be adopted. So, there are other locations that we can consider since this has come to light. We have had offers from our specific base and agricultural resource center that holds land out past the zoo that has an agricultural park out there. We have had other possible locations brought up by State representatives that would not impact residential neighborhoods. And we have to consider all of those possibilities even West Haw Landfill, which the prohibition right now is the water we need to take a serious look at the appropriate location for this facility and thats a process that is going to probably take a couple of years, which is why I initially went to the Mayor back before the notice to cancel was sent out and ask that he consider rolling back the time line, so we could do this properly. Because I dont feel that its been done properly. So, that is the genesis of 135 resolution. Page 14 -9 April 5, 2017 Also, in this resolution, we ask that the Mayor proceed in good faith with negotiations, not only time line, but perhaps there needs to be some pricing adjustments. And the reason I say that is this contract proposal was given to us by a company and what they did was they blended the pricing over a ten-year period. In blending those prices and giving us a flat rate over that ten-year period, they took into consideration potential revenues that they would be obtaining once they created the hot composting, the in vessel composting, which they would then sell the product. So, those revenues were considered in that whole pricing model. So when you roll that back several years, they are not going to be receiving those revenues. There is every expectation that they might want to negotiate prices and the direction would be upward if anything. Hopefully, we can keep them at a set price, in which case we would be getting a deal. What you may not realize is when there is only one proposal on a request for proposal (RFP) and this was a single proposer responded to that RFP, the request for proposals. It is a requirement under procurement code to do a third party cost comparison, to ensure that the County is getting a good deal. And that third party cost comparison was done by HDR, Inc. They are an international national firm and they have offices in Honolulu. This is their line of work and they do this kind of thing. They compared the proposed prices for both phase 1 and phase 2 of this project to other similar contracts that have been led across the staterecent contracts. And they found that the pricing that was offered was reasonable and, in fact, actually less than other similar types of contracts. So in essence, what we got initially was a good deal. As we renegotiate, we need to keep that into consideration, understand how blended pricing was conducted so that they could give us a flat rate, and show good faith and professionalism in our negotiations. And I would urge the administration to consider that as they move forward. Thank you. I hope you will support this resolution. CHR. POINDEXTER: Thank you. Council Member Chung. MR. CHUNG: Thank you very much. I really wanted to thank the Keaukaha people from coming here and for getting involved. I read about it when Sue was at the meeting and Harry. And really, this thing is not site specific. I think all of you realize that people here were speaking about how important they viewed composting is, but just not re trying to situate that facility. Im with you guys all the way. If they were trying to put something like this next to my subdivision, I would be raising holy hell myself. Of course, you guys have more history because of the things that had been put on Hawaiian Homelands so that only compounds matters. But, I can certainly sympathize with your position, but what we need you guys to do now is be our allies, okay? Right now you have voiced your opposition to the facility because of its location. The administration, from all we have read, anyway, has said location is not the issue; it was always cost and it not fitting into our solid waste management plan. Page 15 -9 April 5, 2017 Those were the two reasons articulated by the administration and if we are to read the newspaper articles correctly, that is our eyes to what the administration is thinking. Location was not the issue. But you made it clear that location is an issue and you got Mrs. Lee Loy over there, who going to protect your interests. composting project; I cannot think of it any other way than just to say its going to be transformative on many levels. Both from an agricultural standpoint we will make rock into arable land. Everybody knows that, from solid waste management overall plan, what we view as being important to us. It might not be contained in our integrated solid waste management plan right now, which was done in 2009, but right now, this is cutting edge technology. Its transformative in what were going to dothe impact its going to have on our landfill and from a public policy innovation standpoint; its off the charts. re going to be leading the State. All I ask is that you guys be our supporters now. You can rely on us that we wont try to shove anything down your throats. When we pass the resolution two years ago, it was never site specific saying okay its going to be on Department of Hawaiian Homelands. No. We want to do, and I assure you that. We have listened to you guys and so its kind of fortuitous that this whole controversy came up. But, lets work together now in getting this really good project going. Thanks. CHR. POINDEXTER: Thank you. Council Member Lee Loy. MS. LEE LOY: If I could call Maile Luuwai forward. I wanted her to share with the Council. She was one of the two community members who went to visit the facility on the mainland and just one or two minutes of what you observed and your take aways from that particular visit. CHR. POINDEXTER: Excuse me, just one second. Can you state your name for the record for the minutes? Thank you. (Note: At this time, Maile Association came forward to address the Council.) MS. : Thank you Maile for the armers Association. We want to be your ally told the Mayor that, too. We want to be pro- solution. If you read the written testimony I submitted to you in January when I met with the contractor in Everett, Washington, I sat at a table like this and said the same thing. We will support you and get behind you on this contract, but you need to help us to relocate it somewhere else. And Vice President Howard Pale was with me. We are not close minded people. I have read the contract and I didnt want them to have to start all over again because our community thinks we agree with you. This is a great idea. Page 16 -9 April 5, 2017 I have seen the final product in Everett, Washington; it is compost gold. It is so beautiful, but phase one of their operation smells like a big hog farm. As you saw in my written testimony it was 38 degrees. I said, Howard 38 degrees and this bugger is stink. Thats why we always said, we feel for any community. We have never said go put it by them. These Kohala people, when they see the research they will be like, oh, no way. They are saying but they dont have the data. re here to be your allies and were here to support the Mayor, too. The contractor wants to establish a good representation in this is going to be their first facility. They have a vested interest in working with the Mayor and with the County Council to make this work. Because I know they want to do similar facilities probably on Oahu, so this is going to be their model facility in the State of hats what I told them, you have a vested interest, lets not go back to zero and another ten years to get a contract done. Lets work togetherwere going to support you, supporting the Mayor, but like I said it cannot be next to any residential communities, not just us. I dont want anybody smelling that nauseous revoltingeople in Washington; in Marysville and Everett. I want to let you know I met with other people when I was in Washington whose communities were affected by the Marysville and Everett facilities. I met with the consultant representative for the Tulalip tribe, who has fought against the Everett facility for their expansion and I also just spoke to the Mayor of Marysville a couple of days ago. So, if anybody wants to do additional research, he said give them my phone number if they need additional research. So, these are communities that have been impacted by composting facilities and composting facilities run by this specific contractor. So, anyway, on that note, I think I took up my five minutes or three minutes, again. I want people to see Hawaiians. Our Hawaiian community is pro-solution. We didnt come up here yelling and screaming, jumping up and down with signs, you know, were here in a respectful manner because we want to show you, we want to work with the County government. We do believe in economic development and we love this composting idea and the final product re excited about it. So, thank you so much. I had a makaala awakening experience just sitting here listening to you. I privy to the communications that you have or have not been having with the Mayor regarding this issue, nor the executive sessions that youorporation Counsel. If I had been privy to that, I would have approached your resolution regarding hiring an attorney differently. I used to be a Corporation Counsel attorney and, let me tell you, thats what they used to do to me too. On Maui the Council would do the same thing, why you are you with the Mayoroh my God I do completely understand why you would need to get additional counsel to really look and I think you have to have the counsel not only look at the contract from the Countyliability perspective, but there is liability perspective regarding the process of not the contract itself but how this contract came to being and that process, too. Theres a liability issue comint Page 17 -9 April 5, 2017 want to sue the County, I want solutions, but we have already taken the steps to look at where we are from a community, just in case this all falls apart and we have to step up with our own attorneys. You know what; we dont want to do this. We are going to partner with you. Hi m going to call you because on this specific issue, Mayor Ks been very supportive of our community. But, I want you, Mayor, you really need to try to openI know negotiations are done in secret, but at some level the communication with this Council, so we can all come together and move forward on this because we all have other business to attend to. And we need to move forward, so you can do other things for your communities and I can move forward and do other things for my community. So, thank you very much. MS. LEE LOY: Maile, if you dont mind staying? As part of your testimony, you put together a cumulative surrounding uses map. You identified, it looks like nine different uses; there was two quarries, the transfer and sort station, the landfill, the proposed composting facility, the green waste facility, the proposed bus maintenance, the drag strip. aqua still adjacent to our homestead community. Can you share a little bit about how all of that creates a cumulative impact for the community and why the community is asking for or standing firm with enough and why its so critical that an environmental impact statement for any one of these facilities is required, if you dont mind sharing? MS. : The Bus Transit facility kind of went right over our head. We only realized with we saw it in the paper and they were doing that shoveling thing. I was like what is that blessing for? Where is that? Oh my goodness, s right on the other side of our fence line and I said oh we missed that EA (Environmental Assessment). There are community members Luahiwa Namahoe has scientific data regarding impacts from bus transit facilities. I was talking to her the other day and I went oh my God, our community missed that. How did we miss that? We need to be more vigilant. Then the composting facility issue came up. Our community did not know that this composting facility was going to be built next to our community, until the EA came out in August. So, the last administration signed this contract in July. In August this EA comes out and I went, how did they sign the contract before the EA? Because I know they need an EIS (environmental impact statement). And so, you know, the prior administration had a blessing for this composting facility before our public comment period closed for the environmental assessment. Talk about slapping the community, and I wentwhy didnt anybody come to our community? You know why they didnt? Because he would not have gottenwant to take credit for it. But, anyway, these are the things that are going on in our community. I moved into our community from Maui ten years ago. I asked people, why is there a racetrack right behind our houses? It is insane. For the people who like to race, it is not you. It is the noise, the intensity of the noise, and people told me we Page 18 -9 April 5, 2017 dont know when that went in. We werent aware. So we are a different community now. Its gotten to this composting facility has actually gotten us to this point where were like, if were not vigilant, all of those properties adjacent to our community is going to be industrial. Forty acres of this property that the composting facility is on is agricultural. So I never caught it, but a little smart bird told me, you know what, think theyre misusing the State Land Use Law by putting industrial things on ag and not doing this and that. I said, you are absolutely correct; I put it into our lawsuit file. But why is this happening? This composting facility, I think, was kind of the last straw. And we have people down in Keaukaha now working with Earth Justice and seeing if they can do studies regarding the impacts of all of those facilities on the community in Keaukaha. So, at the same time, as Terri Napeahi was working on that in Keaukaha, I got wind of this. Then we said, look at us as a community. What has happened? Thats what these cumulative affects is about and this is pretty much the last straw for our community. This needs to stop. We put up with the landfill. They wanted to move the landfill where the composting facility is supposed to be, the only reason they didnt move the landfill there is because the FAA (Federal Aviation Administration) and the State Department of Transportation told them that we will not have another landfill within six miles of the airport. But they were planning on putting that landfill where they are going to have the composting facility 1,000 feet from our closest house. When you are looking at, if there any other community here on this island that has had these experiences that we have, and so thats why I put that map in there. I wanted you to see were not being fickle; were being advocates for our own communities and Luahiwaliving in this community ten years but I have people behind me who have been in this community since the day they were born, you know, talking about the landfill. That it was supposed to be temporary and it got extended. In the Hawaiian community we been too complacent. Were here not to be complacent, but also here to be pro- solution and willing to work with you guys. So, thank you so much. MS. LEE LOY: Thank you. Maile has made an excellent point. The airport got more consideration, than a resident a thousand feet away. So with that, I like to amend the motion with Communication 191.1. Motion to Amend: Ms. Lee Loy moved to amend Res. 135-17 with the contents of Communication 191.1. Seconded by Ms. David. CHR. POINDEXTER: Council Member Lee Loy. MS. LEE LOY: Thank you so much. Im not sure the community has this. What I did was introduce amendments to the resolution and if I coulda little bit because the community is here. It proposes a few more whereas clauses that the Page 19 -9 April 5, 2017 contract identifies the four particular parcels that the Keaukaha-opposes the proposed location. Whereas, the Office of Hawaiian Affairs in their letter of December 12th, 2016, raises objections. Whereas, the Department of Hawaiian Homelands in their letter to the Mayor of January 23, 2017, opposes the proposed location. And, whereas, Senator Kai Kaialii Kahele and Representative th Chris Todd in a letter to the Council dated March 20, wrote about addressing concerns, and the proximity of this facility, and looking for alternative site. This was my way to ensure the community that as we move through this process, and Kanuha has elaborated on that. We have a number of different resolutions moving in certain directions. But this provides the community the assurances that they need that future discussion about any facility is not going to be located in the a. I do want to make a friendly amendment to the e it further resolved and read it into the record. Right now it states be it further resolved that the County is urged to seek agreement with the contractor to build the East rganics facility in a location other than the parcels identified in Appendix II of the contract I would like that to be it further resolved that the County is urged to seek agreement with the contractor to build an organics facility in a location other than the pahat is because of the particular contract we had defined the East facility. CHR. POINDEXTER: MS. LEE LOY: Yes and just making it where we can go look all over. CHR. POINDEXTER: Mr. Clerk, would you consider that a friendly amendment or does that have to be written? MR. MAEDA: I think if we could write that out, it would be better if we can take a recess and just write that out. CHR. POINDEXTER: I would suggest before we take a short recess we hear from a few Council Members then take a recess. I dont know if we want to take a lunch break then come back for this to be ready or table this, because I know that we do have one of the commissions that we need an appointment on. If we could just take that before we go to lunch. listen to a few more of the Council Members and ask for you to recess this until after our lunch. MS. LEE LOY: I have staff already working on it. So, I would love to hear what the rest of the Council Members have to say. But, I really am urging the rest of modify it with the one that I proposed, because it will go a very, very long way not only for the community, but also in whatever renegotiations, retooling of the contract. I really think this will become laser focused and keep everybody in the Page 20 -9 April 5, 2017 -vessel facility that has an incredible stench and needs to be located more than 2,000 feet away from our residents. help. They want to be part of the solution. So, thank you. CHR. POINDEXTER: Council Member Ruggles. MS. RUGGLES: Thank you, Chair. Regarding the amendment and the resolution, I just wanted to state that when HER was here Recycling Company, when they were here, I went through the contract and I looked at their odor control plan. I asked them what technology or I asked them if they were going to be using the same technology they used in Washington, because there have within consistent complaints and, I think, substantial evidence that the odor problem is an issue there. They said they would be using the same gore cover system. For that reason alone, I think it is crucial that we change the location of this. Some other highlights in the testimony received today is they received 6,775 complaints in just five years of the facility being there. The parent company has had 16 civil penalties, and several lawsuits, and Department of Hawaiian Homelands opposes the location. I think that as a body of the Council, we need to protect the health and quality of life for the people that live in our community and on this island, regardless of our district. And especially with the sensitivity of where this is, and the people this represents in Hawaiian Homelands that we need to do our diligence to ensure that there isnt any more inappropriate things that we replace and intrude upon the quality of life for people that live in Keaukaha. And I think that as a side note, these things need to be corrected. But s move the facility. Thank you m in favor of the amendment. Thank you. CHR. POINDEXTER: Thank you, Council Member Richards. MR. RICHARDS: Thank you, Chair. I will keep it brief. Maile, well spoken, well stated. And as Council Member Chung stated she watching, very mindfulI have a Hawaiian Homes in my district and keenly aware of the concerns. So, I like the resolution, I like the amendments, I will be supporting both, and we have your back. CHR. POINDEXTER: Thank you, Council Member MS. : Thank you, Chair. My question isMaile, could you come forward? I have just a question for my edification, since you went to Washington and you refer to the first phase of the in-vessel composting. You are probably speaking to the feed stock being brought in and is that kept inside or outside the facility? Page 21 -9 April 5, 2017 - Association came forward to address the Council.) : The facilities they have there is exactly the same as the facility that there going to build here. If you look at the specks, they take more waste but they say its closed, but you cant keep it closed because you got to bring the thing in, you got to scoot the stuff, and you have to throw the stuff out there, and then it goes on a conveyer belt and its heading to the piles that theyre going to be putting it in. What is interesting, after I went there I found that study, I think, I attached to you guys and it confirmed actually what we experience. In the study by the Statee air quality State agency in the study that I sent you. The volunteers in the study found it was in phase one where the most significant odor came from. I saw that after I experienced it and I said, wow, that only confirms what we experienced there.oh, my God, big hog farm; it stink. But all the people that work there, they are like no, it doesnt stink. I said you people are immune to this smell. They no longer smell the stink. So, when we were walking behind the facility, I just imagined our community living behind that. It was so heavy for me, it hurt. And I told Howard, this is heavy; this weight. We cannot have this in our community, because were not going to be able to get rid of it; years and years. You know, their first lawsuit was in 1998; is 2017; two more lawsuits in 2014. Once that thing goes in, we cannot get rid of them. You know, the Health Department here, you think you can depend on the State Health Department, you know, theyre walking in circles. : I appreciate the firsthand story of the stink. And it is not the only community where this has happened. I have got to share that the Chairs community in has experienced a very serious situation, with run off from the dairy that is stinking up the town for one of a better way to express it. : Then you have to go to the State Health Department, right? Good luck with that. : : Yeah. So, once its in place, you know, I was like, all were going to be doing instead of Agricultural Education Center, instead of building that, we are going to be spending that all the time with our attorneys, trying to fight these guys. I am like, what a waste of resourcess why were going to be pro-solution and work with everybody, because why are we wasting all our time and resources? Lets get to work and move this forward. Page 22 -9 April 5, 2017 : I believe Teresa is coming back or has asked to come back in July to give the Council a complete history of the whole area because they need to be more aware of why this is a cumulative impact. Thank you. CHR. POINDEXTER: Thank you, Council Member Eoff. MS. EOFF: Thank you. I just wanted to express my appreciation for everybody that spoke from the community today and upping the realization the things that we do. I mean, even something that seems like a good thing too much of a good thing, but even too much of a good thing can be a bad thing. And we have to start to really realize this in our decision making. I think, personally, when I got involved in looking at land use issues 30 years ago, here, my involvement was cumulative impacts not only to public trust resources. But to native Hawaiian community I worked many years with Council Member David and Council Member Pilago and others, to require cultural impact statements for all future large scale development in the State wherever and EIS would be triggered. And it had to be a meaningful analysis, not like before there were no significant impacts. We need to look closely. I dont understand why and EIS wasnt one of the most important things that should have been done as discovery before we move forward on this . Now, whatever we need to do. If we relocate this facility; which I hope we can somewhere else, come a problem in the future. I dont know how far away it has to be from a surrounding community to not affect them? But when this first came up to Council, I really envisioned it being at lava, where the huge landfill is nothinking; I hope that is far enough away if that becomes a potential alternate site, I hope it is far enough away from the resort communit But, I think, maybe it would be okay there. I know the water was an issue glad we can look at that again m just really grateful to hear from the community and I saw your signs earlier, I understood that you were for compost but against the location. So, I thank you for coming to us with that kind of mixed message. And I know it has been confusing whether to support or not support these items on the agenda. But, I think, its getting clear now and I really appreciate you being here and, Maile, sharing your experience as Corporation Counsel, and for going out to the site in the Mainland, and giving it a good analysis and being able to bring that to us. So, I want to support these amendments then I will support the resolution so we can keep on track here. Mahalo, everybody. CHR. POINDEXTER: Thank you, Council Member David. MS. DAVID: Yes. Number one, I think, a big mahalo nui, to Ms. Lee Loy because her amendments to this resolution basically solidifies everybodys concerns that were raised here. I think, this document when we get the Page 23 -9 April 5, 2017 amendment, I think, memorializdeep feelings about this subject matter. So, mahalo nui, Council Member Lee Loy, for really advocating for your community and looking out for their best interest, which we all have at heart. And lastt want to talk too long but to thank, Maile, for her participation in this, and her work for the community, and every single one of these people that came out today. I remember when this first came out and, I think, one of the comments from our Council Members statede didnt hear anything from the community when this initially came about. Now, backtracking and seeing the time line of how things happened, I have an idea why you folks didnt have an opportunity to come out. Im really glad you did now, because the fact that I met the two people that were referred to as taking this trip, I put a lot of weight and trust in what you have said and you have brought back to us. So, I cant thank you enough. The community service and community activism that Ms. Eoff has spoke about was all on the Kona side that we got involved, just like you, as community activists but not obstructionists. So, I really thank you and it warms me heart to see that you as our native community is banning together, and I support you all the way. Mahalo, Ms. Lee Loy. CHR. POINDEXTER: Thank you, Council Member Kanuha? MR. KANUHA: o be CHR. POINDEXTER: of the safety features in 191.1 MR. KANUHA: , thanks. CHR. POINDEXTER: Thank you. I just want to say, I appreciate all of what everybody said this morning in testimony. And Maile what you have said, because I can only wish we in was more proactive at the time. Unfortunately, ours was at the State level when it came to the dairy. So, when you talk about the stink, it doesnt matter what kind stink; stink is stink. It ruined the quality of life for our people in specially our people who are on oxygen tanks, who are elderly and sick and they have to close their windows, because the stink is so bad that you cannot even have dinner sometimes. Its nauseating. So, for you to be proactive, Im behind you 200 percent, because we know what were struggling with ts not just the wastewater run-off, which possibly could be another situation in Keaukaha but when you talk about the stink, we know it so well. I applaud you and I applaud your Council Member Lee Loy, for standing up for her community and putting forward legislation to make sure that she protects the people. And its always people before profit. So thank you, Council Member Lee Loy, for that. As we wait, do you think it will be Page 24 -9 April 5, 2017 longer or can we just table this until after lunch and we will just move into the nomination? Can we table it, do the nomination then, come back? MS. LEE LOY: They have it. I guess, if we want to move it along, we have other items on the agenda. CHR. POINDEXTER: Yes. We still need to take a lunch break. So if we table this, take the nomination, and then come back to it, she will have the document Motion to Table: Ms. Lee Loy moved to table Comm. 191.1. Seconded by Mr. Kanuha and carried by the following voice vote: Ayes: Council Members Chung, David, Kanuha, Acting Chair Eoff 7. Noes: None. Absent: Council Members Richards and Ruggles 2. Excused: None. CHR. POINDEXTER: At this time, we will take out of order the nomination for Nestorio Lagua Domingo. So, Mr. Clerk, could you read it PC- reports. REPORTS: The Chair directed the Council to proceed to the next order of business, Reports. PC-6 NOMINATION OF NESTORIO LAGUA DOMINGO TO THE WATER (Comm. 160): BOARD Requires Council Confirmation by: April 16, 2017 (Section 13-4(l), Motion to Approve: Mr. Kanuha made a motion to confirm Planning Committee Report No. 6. Seconded by Ms. . (Note: At this time, Executive Assistant to the Mayor Rose Bautista came forward to address the Council.) MS. BAUTISTA: Aloha, Chair Poindexter and members of the Council Rose Bautista, Executive Assistant to Mayor Kim. On behalf of the Mayor, its a pleasure to to the Water Board and we thank you for considering his nomination. Were pleased that Mr. Domingo joins us today and he was able to drive over from Kona to be Page 25 -9 April 5, 2017 with all of you. To reiterate, again, his qualification; Mr. Domingo retired from the U.S. Airforce as a civilian flight test engineer, after 21 years of civil service. He also served 21 years of active and reserve military service, where he retired as a Chief Warrant Officer for civil service score of the U.S. Navy. He holds a bachelors and masters of science degrees in mechanical engineering wearing his master thesis, included the study of water dynamic and hydraulic system. Mr. Domingo is an active member of the rotary club, where he was sponsored by the late Doctor Clifford Kopp, who was the avid advocate for the homeless in our community. He is also a member of the Big Island Retired Military Association, American Legion, and Pualani Estates Homeowners Association. Mr. Domingo state that he is not affiliated with any political party and if confirmed, he will serve a term ending December 31st, 2021. Also, I would like add to the communication we submitted earlier, we would like to add that Mr. Domingo has lived in the Kona area for about three years now; however, he has family ties in ved from California. His mother, siblings, and other relatives have been living on the island, specifically on Oahu for over 30 years and visited them numerous times, at least twice a year. He also has had several assignments at Pearl Harbor with the U.S. Navy and spent one year in Honolulu, working at Pearl Harbor. We believe that this time, in addition to his experience engineering education and his interest in community service, will make him an asset and an invaluable voice on the board. Mayor Kim has full confidence in Mr. Domingo to serve in this capacity and we respectfully request your confirmation of him today and to fill this spot that has been vacant for over a year, since 2015. We would also like to thank Mr. Domingo for stepping up and for his willingness to serve the community and the Island as a whole in this volunteer capacity. Thank you for your time. CHR. POINDEXTER: Thank you. Mr. Domingo, do you want to say a few words before I open it up to the Council? (Note: At this time, nominee Nestorio Lagua Domingo came forward to address the Council.) MR. DOMINGO: Yes. My good friend and fellow member of the Rotary Club of Kona Sunrise asked me if I want to serve on the Water Board and asked me to submit my application. I said, Water Board? Thats my expertise. Without having any second thought, I went to the website to look at the application and submit it because I know very well that I am very qualified to sit in this position. Like Ms. Bautista, here, said in my introduction, I studied water from obtaining it from the source to delivering it to the people and one thing I would like to say, also, is bringing water to the customers, its not cheap. It costs a lot of money. I have experience outside in that aspect as far as infrastructure of bringing water to the customers. Page 26 -9 April 5, 2017 CHR. POINDEXTER: Okay, thank you. open it up for questions, Council Member Kanuha. MR. KANUHA: Thank you. Just briefly, mahalo for coming here, I know you t make it the last time for committee level, but we always appreciate when members that get nominated from the community come in and kind of voice why they want to be on the commissions. You know, its a volunteer capacity so its sometimes difficult to get people from the community to get out there and be part of the process of how we do things here in . So, I really appreciate that for you stepping up. I know you have a lot of community service in Kona and around the island and mahalo for your years of service, as well nice to see that more community members are stepping up to help serve the community. The reason why we wanted you to be here is because the Water Board is really an important board for t kind of serves the Water Department in a capacity that is different from other boards. Its a critical board with the issues we have been dealing with, especially in Kona, or the west side with water. You have been keeping up with what happening with the steam water commission. It was something that I felt was critical to have somebody on the board that understands what were dealing with and understandings the ramifications of certain policies and laws that concern the residents. I know you have a background in dealing with water, so thats a really good aspect to have. The concern I have is I always wanted to have somebody that knows the area, knows the community, but you might bring a different perspective to the water commission. Yeah, those were concerns that I had but I think were all going to have concerns for members on these commissions. But, I think, if you really have the heart to push forward and move forward and for the community, then Im all on board. I just want to make sure that is your vision and make the best decisions possible for this community, not only what is happening today, but for the generations down the line. That all I can ask for. Thank you for volunteering and thats all I got to say. Thank you, guys. CHR. POINDEXTER: MS. O: Thank you, Chair and thank you, Mr. Domingo, for coming forward. Ms. Bautista, this is forhes serving from district seven? Okay. Thank you. I appreciate you are here today, I know you were not able to make it before. I felt kind of bad for that as I found myself in that position once when I volunteered for a commission, so I was a bit sympathetic to that. Your background is outstanding for this particular Water Board, which is a very important board. The fact that you have only resided in Kona for three years now, is a bit of an issue because it takes a while to get to know the lay of the land. But I would imagine with your background you will be a fast learner, in terms of picking up what you need to know for the district and the island in total. We do Page 27 -9 April 5, 2017 have some water and availability issues in West we would like to be able to resolve, and I hope you can help us in that regard. So, I will be supporting your nomination. Thank you very much. MR. DOMINGO: studied. CHR. POINDEXTER: Council Member David. MS. DAVID: Aloha, Mr. Domingo and mahalo for coming today. I wanted to express my appreciation for your desire to serve on this important board. What Mr. Kanuha has said is very true, the concerns that we have. We want make sure water is a very important, if not, the most important thing for us as an Island community. Your background somebody who has engineering and study of water dynamics and hydraulics. So, I am very happy about that. I do have one question and I think Council Member touched on length of time you have been on So my question is, where did you live before and did your 29 years of active service, if I may ask, in what State? MR. DOMINGO: I have been all over the world, the Europe area and Pacific area. We just go out and then come back and go out and come back. The highlight of my military career was after nine eleven when I was called back to active duty. I had a good opportunity to be assigned Pearl Harbor Station with the Commander in Chief of the U.S. Pacific fleet. So, in a way, I had a good look at all of the operations we had out there at that time. One thing I want to tell you since Im an engineer or two-star Admirable put me as the designer engineer for when it comes to water and the thing he asked before we deploy troops is that do we have a water source? So, I have go through all the intel data and I can tell them yes, sir, we do have water. Then I go on and design. This is how deep the water table is and I say, okay, this is how we extract it from the ground or this is how we deliver it. So in a way, that was a good experience for me, also, having to serve in the military Pearl Harbor. MS. DAVID: Thank you so much for that. MS. BAUTISTA: Excuse me, if I might add, he spent 29 years in California and obtained his Masters and his BA from Cal State University Northridge. MS. DAVID: Yes, thank you so much. I am going to support your nomination, as well. Thank you for your service. Mahalo. CHR. POINDEXTER: Council Member Eoff had her light on first. I apologize. Page 28 -9 April 5, 2017 MS. DAVID: Thank you. Aloha, Mr. Domingo and thank you for volunteering to serve on the commission or the board. I only had an opportunity to meet you mostly at the cemetery. I wanted to thank you for your service to the military as well as wanting to serve our community great job and be a good addition to this Water Board, so, mahalo. CHR. POINDEXTER: Thank you, Council Member Richards. MR. RICHARDS: Aloha, Mr. Domingo, and thank you so much for being here. My hesitation with you was your three years of living in the islands or in the Kona district. As youheard everybody else articulate, water going forward, I think, there will be more fights over water than oil coming forward. But that being said, your credentials and then listening to you today, thats why its so important for us to hear from the people not just on papercoming forward, I will be supporting your nomination. And I appreciate you coming in, aloha. CHR. POINDEXTER: Thank you, Council Member Chung. MR. CHUNG: Thank you Madam Chairman. Good morning or afternoon, Mr. Domingo. I voted against you last time at the committee level, but it was because you were not here. We dont know anything about you and the fact, as some people brought up, you were only living here for three years. It raises some concernsnot to say that a person who has living here only three years isnt qualified because I am going to be voting for you today, incidentally. But for s good to have a historical perspective on issues as well. I think you are a quick read, obviously. I am going to ask you a question, which IWater Board person. From a technical standpoint, you got the credit credentials. I want to see what your thinking is on another issue. Many years ago people in the Keaukahathe only reason why I am bringing this is up is because you said delivery of water is not cheap and today concepts together. Many years ago, I represented that district. Some of my constituents, good friends of mine actually, were conscientiously objecting against their payment of water fees to the Water Department. So, they were concreting their water meters. They were citing this provision in the Hawaiian Homes Act, which stated that theyre supposed to get water free of all charge. What are your thoughts on that? MR. DOMINGO: Can you be more specific on that one, sir? MR. CHUNG: Thereomes Commission Act that states thatI might not be using the words correctly, that lessees or beneficiaries of Hawaiian Homelands, and this is the words, shall receive water free of all charge. I will give you a little bit more background. The departments of Water Supply throughout the State were united in adopting this position that theyre Page 29 -9 April 5, 2017 providing the water free of all charge. What theyre charging is the delivery fee for the services. Im not going to tell you how I felt about that but I want to see what you think about that? MR. DOMINGO: Well, what I meant by that when I said delivering water from the source and distributing it to the customers; the equipment, the pumps, and all the related items costs a lot of money. But we have to look at efficiencies, also. We need to get the best equipment for the intended purpose. If we can get that cheaply to our customer, because those are initial costs; of course, you have to look at the life cycle of the component also. So, maintenance, replacement, initial costs those cost a lot of money. Like I said, we have to manage this carefully; getting the best bang for our money. So, thats what I meant. MR. CHUNG: Ok, well, that it had specifically to do with lessees on Hawaiian Homelands blindsid again. I will tell you what my position is on this thing. It says supposed to get water free of all charge. If the position of the departments throughout the State is that they are getting water free of all charge but they are paying for the service. Then, that means everybody is getting no special benefit being accorded those lessees on Hawaiian Homelands. Its a very interesting issue and I just wanted to have that put in the back of your mind to think about. I think the solution would be for the Department of Hawaiian Homelands to develop their own water systems, too, to provide to the lessees, and they can also sell to other people, and provide with the revenues to provide for more services to the lessees. But, think about it. CHR. POINDEXTER: Council Member Lee Loy. MS. LEE LOY: Good afternoon, Mr. Domingo. I, too, did not support your nomination. Really, it was because we had no heard from you. I came from the Water Board and so, it really is a special board for me. So, I really wanted to hear what your thoughts werevery clear; you have the technical training and expertise for water. So understanding the hydrology, the geology, basal lens dike systems, health of our aqua first; that by far really, for me, is more than enough to sit on the board. But, like the rest of our members here, three years is a lot. Mr. Chung brought up an issue that will come up and I want you to just take the time to really study the Hawaiian Homes Commission Act public trust doctrine, and then our Water Code that is provided in our State, and the rules and procedures of the department. I do feel a lot more comfortable now you are here. I will be supporting your nomination. For the rest of Council Members, I really appreciated this exercise. I have shared this before, we have an opportunity to vet these individuals, and I think of it as a Page 30 -9 April 5, 2017 crayon box. When we put people on our boards and commissions we cant only have blue; they cannot be all engineers, they have to be thinkers, they have to be family men or women. We need them all because they will provide a very collaborative voice from their particular lens. So as we go through these processes of filling the different boards and commissions and maybe even for you, Rose, as you start looking for people to help. I know I have provided some names to Rose. I just want us to think about that. They bring some technical expertise, but we cant have just that same technical expertise in one board, because even a bill for the Water Board, he also had a lot of water experience. Now, we have two people on the Water Board with engineering backgrounds; so, if we could expand our scope a little bit and find different colors to fill up this crayon box. Thank you. CHR. POINDEXTER: Thank you, any other discussion? like to say thank you for coming forward and volunteering. Its going to take a lot of your time. But, all I ask isheard from Council Member Kanuha about the history. Go back and learn the history of the entire island and the how the water runs, and what is needed. Go back and look at the history because we been developing on this island. And a lot of people are coming from away, not familiar with the history and the slopes and the rainfall in different areas or not familiar with the history, and the slopes, and the rainfall in different areas or not enough rainfall in some areas. So I ask you to go back and look at the history, the lay of the land, and all of that to not just about specific water issues, but as a whole as this Island, as we continue to move forward with our economic development. So, thank you very much for coming forward. All those in favor, of confirming Mr. Nestorio Domingo to the Water Board, say aye. Vote on PC-6: The motion to adopt Planning Committee Report No. 6 was (Adopted) carried by the following roll call vote: Ayes: Council Members Chung, David, Kanuha, Poindexter, Richards, Ruggles, and Acting Chair Eoff 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Thank you so much for coming. Were going to finish something up if you want to wait a little while or we should take it real quickly congratulate you. Thank you, recess. Recess: At 1:02 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 1:03 p.m. Page 31 -9 April 5, 2017 CHR. POINDEXTER: Back to order. To remove this from the table do we need a motion? MS. LEE LOY: Since I made a couple of edits, what I would like to do is withdraw my amendmentmotion to remove from the table. Vote on Motion to Ms. Lee Loy moved to remove Res. 135-17 from the table. Remove from Table: Seconded by Mr. Richards and carried by the following (Approved) voice vote: Ayes: Council Members Chung, David, Kanuha, Ruggles, and Acting Chair Eoff 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Okay, Council Member Lee Loy. MS. LEE LOY: Thank you. and I need , is to withdraw my motion of Communication 191.1 and amend it with Communication 191.2. MS. DAVID: I withdraw my second, on the 191.1. Withdraw Motion Ms. Lee Loy withdrew her motion to amend Res. 135-17 to Amend: with the contents of Comm. 191.1. Seconded by Ms. David. CHR. POINDEXTER: Council Member Lee Loy motioned in 191.2 and Council Member Kanuha seconded that. Motion to Amend: Ms. Lee Loy moved to amend Res. 135-17 with the contents of Comm. 191.2. Seconded by Mr. Kanuha. MS. LEE LOY: So, basically, what staff did while we took a little break is add in exacfind that on page one of the edits. Then, page 3, 4, and 5 puts together Resolution 135, with my amendments and Ms. Oharas original resolution. CHR. POINDEXTER: Okay, any questions or discussion on Communication 191.2? Council Member MS. : Page 32 -9 April 5, 2017 The whole process needs to be redone. So, I just want to make sure that everybody understands that. Thank you. CHR. POINDEXTER: Thank you. Council Member Lee Loy. MS. LEE LOY: If I could expand on that a little bit. I understand what my colleague is saying, but it isns a formal withdraw of draft environmental assessment from the Office of Environmental Quality Control, then it actually is done or dead. So I understand what shes saying, but there still is an active document; a draft environmental assessment with the Office of Environmental Quality Control. Now if the administration is going to be moving forward with the appropriate documentation to withdraw that, I will be fine. But for right now, what we have before us in real time and what dealing with right now is what is contained in this document. CHR. POINDEXTER: Thank you, any questions or discussions? Okay, everyone on Communication 191.2, all those in favor of 191.2, Vote on Motion to The motion to amend Res. 135-17 with the contents of Amend: Comm. 191.2 was carried by the following voice vote: (Approved) Ayes: Council Members Chung, David, Kanuha, Ruggles, and Acting Chair Eoff 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: So, Resolution 135-17, as amended, with Communication 191.2 is on the floor. Council Member Lee Loy, do you have anything to say on that? Anyone else? No, okay. So, all those in favor of Resolution 135-17, as Vote on Res. 135-17: The motion to adopt Res. 135-17, as amended to Draft 2, (Draft 2) was carried by the following voice vote: (Approved) Ayes: Council Members Chung, David, Kanuha, Richards, and Acting Chair Eoff 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: I see we have our counselCorp Counsel, do you have something to say? Thank you. Page 33 -9 April 5, 2017 (Note: At this time, Corporation Counsel Joseph Kamelamela came forward to address the Council.) MR. KAMELAMELA: provision it is on and it has to do with the process and to explain it, I would have to have a short discussion with the County Council. It has to be in that Executive Sessionbut, it says, whereas several members of the Environmental Management Committee CHR. POINDEXTER: Excuse me just one second. I was just notified that we should suspend the rules to continue the conversation. So, Rule 24(e), do I have a motion to suspend the Rules of 24(e) so we can continue the conversation, because it was after it was voted on and passed? Vote on Motion to Ms. David moved to suspend Council Rule 24 to waive the Suspend Council holdover for the amendment of Res. 135-17. Seconded by Rules: Mr. Kanuha and carried by the following voice vote: (Approved) Ayes: Council Members Chung, David, Kanuha, Richards, and Acting Chair Eoff 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Okay. Continue. MR. KAMELAMELA: So just that provision that I read, that I need to advise the County Council on. It has to do with process and procedure. I have no problems with everything else. CHR. POINDEXTER: Okay. Council Member Eoff. MS. EOFF: Thank you. Well, this is just a resolution. I assume you are questioning how that statement could be valid if it was a formal message from the commission, is that what you are questioning? MR. KAMELAMELA: No, it has nothing to do with the validity of the statements the process. MS. EOFF: What process? MR. KAMELAMELA: Well, we know we went to executive session and certain things were looked at. So, I want to make sure before you vote on this resolution. Page 34 -9 April 5, 2017 MS. EOFF: Oh, I thought you were pointing out that one whereas MR. KAMELAMELA: Yeah. Whereas several members of the Environmental Management Committee found that the cost analysis with this report to be flawed. MS. EOFF: There is an issue with having thatin your mind, there is an issue with having that in this resolution? MR. KAMELAMELA: Yes. MS. EOFF: I just wanted to be clear, I wasnt sure what you were having an objection to. MR. KAMELAMELA: It was just that section, because I have no issues with the rest. CHR. POINDEXTER: I guess, the discussion is he has a problem with that statement, so its passed already. So, this is just discussion with him whether or not we would even take it up MS. : I do believe that Mr. objection is because it described an action that took place in executive session. When we came out of executive session, I was asked to summarize for the record what occurred in executive session. That was part of my summary. So, I I think this is also part of public meeting. So, I dont think that there objection to containing it in this resolution. CHR. POINDEXTER: Thank you, any other discussion? Okay. Thank you for your recommendation. So, it still stands that we did pass it. Thank you very much. MR. KAMELAMELA: CHR. POINDEXTER: What does everybodygo ahead, Council Member Chung. MR. CHUNG: Take Resolution 101-going to take too long. At least we package everything together. CHR. POINDEXTER: Then we can come back. I apologize for some people I -17. Page 35 -9 April 5, 2017 Return to Order of The Chair directed the Council to return to the order of business. Business: ORDER OF The Chair Pro-Tem directed the Council to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. 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 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) Negative: FC-9 (Due to a vote of 9-noes) Motion to Approve: Ms. David moved to adopt Res. 101-17 and Finance Committee Report No. 9. Seconded by Mr. Richards. CHR. POINDEXTER: Council Member David or do you want me to go to Council Member ara since she introduced it? Council Member ara. MS. : Thank you, Chair. I actually had a revision to this Resolution 101 that I was going to introduce by substitution, but I see that Ms. Lee Loy has incorporated all of my proposed language and added a few whereasI am going to let her offer that by substitution. CHR. POINDEXTER: Council Member Lee Loy. MS. LEE LOY: Thank you. CHR. POINDEXTER: So, motion tois it your Communication 140.5? MS. LEE LOY: One four zero point five, yeah. I would like to make a motion to amend Resolution 101-17 with reference to Communication 140.5. Motion to Amend: Ms. Lee Loy moved to amend Res. 101-17 with the contents of Comm. 140.5. Seconded by CHR. POINDEXTER: Council Member Lee Loy. MS. LEE LOY is planning to do, too, was take the vehicle of Resolution 101, which we had Page 36 -9 April 5, 2017 positioned ourselves with a negative recommendation and actually use it to say exactly what we wanted to say. So, Communication 140.5 incorporates that any future contract or contract discussions for an organic facility would not be located in a. And I let Mrs. Oara speak to some of her other provisions regarding the options of years to extend. CHR. POINDEXTER: MS. : Thank you, Chair. I know not all of the Council is that familiar with procurement law; not that Im an expert, but I have been a contract manager for the State, so I have some background there. Several things; when you do a request for proposals for a multi-year contract, per our Charter, an agreement has to be made first by the County Council before the County agencies can go out for that solicitation. There is, sort of, a round-about way of going after a multi-year contract, which is a useful mechanism in certain service contracts and that is to issue a contract for one year with four option years. It effectively gives the contractor the impression that theyre going in for five-year contract and if they performing well they probably are in there for a four-year contract. It also gives the County, if the County doing the solicitation, the ability to end the contract at the end of any of those given fiscal years. And they would do that if they were unsatisfied with the performance on the contract or any number of reasons. Its not generally used for large technical service contracts like composting and mulching, but when we were in session in Kona. I did ask if they was a fall-back plan for them; plan b, if the Council did not approve the solicitation of a multi- year contract, would they be going to issue a one year contract with four option years and I was told yes. So what this effectively does is any solicitation for green waste, organic diversion; that is of a term longer than two years, including all option years has to come to Council for approval. Because, I would think, otherwise the intent of our Section Ten, I believe it is, of the Charter is being compromised by doing the other route. So that is why I basically proposed this amendment and I am in favor of modifications and additions to the resolution as I drafted it. CHR. POINDEXTER: Thank you. Council Member Chung. MR. CHUNG: Many years ago, I was on the Council when the war on terror began. I recall something where Curtis Tyler submitted a resolution supporting President Bush. Then, somebody else came up with a resolution that went completely opposite of that and they used Curtis vehicle as a way of sending the complete opposite message. That is kind of what is happening here. Maybe I overlooked all of the stuff that was being submitted, but I just expected when I said, hey, maybe we should just take this one up and package everything together; I thought everybody without discussion, boom, it was going nine nothing down, right? But it seems to have taken on a different look, and maybe its going to Page 37 -9 April 5, 2017 require more discussion, and maybe we should break for lunch. Would that be okay? CHR. POINDEXTER: Okay, so, when do you guys want to come back from lunch? How long of a lunch? Do we come back at 2:30 recess and reconvene at 2:30. Recess: At 1:20 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 2:43 p.m. CHR. POINDEXTER: floor last, was it Aaron Chung because you were talking about going to lunch, which we did, so, any more discussion? Council Member Kanuha. MR. KANUHA: Can you just out where CHR. POINDEXTER: -17 and there was a motion on the floor to amend 101 with the Communication of 140.5. MR. KANUHA: Okay, thank you. CHR. POINDEXTER: Yeah, so we were on that before we left for lunch, so. MS. : Okay. Before lunch we were entertaining this resolution, which -17, draft one. So, you can consider this draft two. The things that are significant about the modifications are tha-year procurements. Multi-year procurements are supposed to come to Council for approval before the solicitation is made, but there is also an option that can be exercised under our State Procurement Code to do a one-year contract with four option years. And understand the reasoning for the Council having oversight over multi-year contracts is because we have fiscal oversight for the County. And whenever we commit to a multi-year solicitation, we must also commit to funding those original contract years. So, if the multi-year is for three multi-years and two option years; we have to commit to the three original contract years. We are not obligated to commit funding for the option years because t So if you understand that, as a contractor, you might look at a multi-year three- year with two option years in the same way you would look at one year with four Page 38 -9 April 5, 2017 options; either way, -year term. And you would figure circumvented the whole intent of Article 10, Section 10-5, in the County Charter, which puts the Council at the point of making that decision whether to go out for a multi-year solicitation because it is about the fiscal commitment. So, I wanted to be sure that was understood and this only would only apply to Green waste Organic Diversion Program contracts and not to any other types of solicitation that the County might want to do using that mechanism of one year with multiple option years. As for the other amendments, that are in 140.5 that were added by Ms. Lee Loy, she can probably speak to those. MS. EOFF: This is so different then what we were voting on before. I mean, I understood that Resolution 101 is to authorize the Mayor to enter into an agreement for a multi- year contract to find another Green Waste contractor, because of his termination of the current one. But, it seems like this is a mixed message because now I just pursue, if we wanted to vote no on 101going ahead with that. Then something like this to come up separately at a different time for a different situation, because right now w. W mediation over the terms, right? like a completely different track, and why would we do it this way; rather when we would need to bring this other one up or ify question to you guys. CHR. POINDEXTER: MS. EOFF: If negotiations fail and the administration decides to go out for a new solicitation, they could do that tomorrow, or they could do that after the next round of bargaining or negoti whatever. They could do that the very next day. They could go out for a one year with four option years, without our consultation. To me, that feels like it that violates the intent of the Charter. I just wanted to make sure that option was not pursued. So that the reasoning because I was told division head that would be their plan b. MS. EOFF: Yeah they wouldnt have to come to us. They would do a one year. Yeah, I understood all thatstill a little confused on the process because now can we do that? The Mayor sent that resolution to us through Finance Page 39 -9 April 5, 2017 Committee. Dont we need to act on it? Either vote no or yes, on authorizing his initial request. CHR. POINDEXTER: Okay, so clerk question. MR. MAEDA: The resolution can be amended; however, this body would like to amend it. MS. EOFF: Yeah, I know we can, but the title is completely changed as well. no longer voting on authorizing the Mayor to turn into a multi-year contract, which is what they brought to the Finance Committee. Now, here it is in Council for us to act on the proposalt know who can answer that. CHR. POINDEXTER: I think the clerk can answer, if valid to change the whole title of that resolution? MR. MAEDA: The title of the resolution can be changed, yes; not on a bill, but on a resolution it can. Point of Order: MR. KANUHA: Point of Order CHR. POINDEXTER: Okay, Council Member Kanuha. MR. KANUHA: On the act of changing the title even though its a resolution, the original resolution was authorizing the payment of funds. Its different than just a normal resolution, to me. I dont know if that is a case for not being able to change the title. Im just bringing that up. Point of Order: MS. : Point of Order. The title has not been changed. CHR. POINDEXTER: It has, on the one communication. MS. : sorry, I didnt change it. Okay, sorry CHR. POINDEXTER: Okay, so what do we want to do this on this? Do we want to table this and we withdraw 140 and then we try to do it again and table this till the end so we can complete? Well, Council Member David you have a question, go ahead. MS. DAVID: Yeah, I think Im confused as a matter of procedure because how we voted on this initially. Initially, we sent a negative recommendation, a unanimous one. Given the discussion this morning and our positions that we took, with respect to authorizing a special council and urging Mayor Kim to rescind the contract, this is pretty much asking for a multi-year contract. Im confused because what is the message re sending? I think we have gotten Page 40 -9 April 5, 2017 to the point where Im not sure if we need toI understand Mrs. Os point that we need a safety net in case things fall through. Thats what I dont know. Im not sure how procedurally, what we need to do. CHR. POINDEXTER: Okay, so maybe we should ask MS. EOFF: it matters how we ask the question, too, because if you say can the title of the resolution be changed the answer is yes. Can you vote and amend it, this vote came with the request from Council action from the department. CHR. POINDEXTER: Is that a question for Corp Counsel? MS. EOFF: It wasnt a resolution that one of us authored. CHR. POINDEXTER: Okay, so, I guess, maybe thats a question for Corp. Counsel. Can we just take a two-minute recess? Okay, Council Member Lee Loy, go ahead. MS. LEE LOY: Resolution 101 we sent a very clear message to the Mayor, right? Now, the option was to stick with that unfavorable recommendation and vote it down. Mrs. Oara proposed an amendment to that. I saw it as an opportunity to ensure our community that if were going to be part of the process, that it included language to ensure that it would not be located in . So the two lanes I see is we get back to 101 and continue to vote it down, and then the administration comes back or we take this amendment up with its amendments and make a decision that way. My primary focus on what I saw coming through the Council through the various communications was an amendment to Resolution 101 with a multi-year contract the way Mrs. Oara explained. I wasnt going to miss that opportunity to make sure that it wasnt going to be in the community. So, thats the two lanes that I see. Now, that is the decision for us. MS. EOFF: Im not arguing the intention for that and I agree with it, I just wondered if the procedure that were doing is correct. CHR. POINDEXTER: Council Member Eoff has the floor, but I know Council Member Davidwell, you were done speaking? Okay, so then, are you done Council Member Eoff? Okay, so Council Member Richards. MR. RICHARDS: I think I understood the intent. 101 was coming forward in just one time pau. I think with the substitution, I think, this is a completely procedural question. I understand what were trying to do is make sure that safety net so we cant circumvent the intent and just plugging a puka, which is good thought process but this is a procedural thing in my mind. So, I think I have to Page 41 -9 April 5, 2017 agree with Council Member Lee Loy. Those are the two avenues but I understand Councilaras point; that we need to plug the puka. So procedural, I think we have to look to the County Clerk for an answer. CHR. POINDEXTER: So, I dont know if its time that you want to bring up Corp Counsel and ask him that questions and clarify if we vote that down if they can go for the one year? I dont know its up to you guys? Council Member Chung. MR. CHUNG: This is how I look at it. Personally I can find several reasons to vote against the amendment and I can find several reasons to vote for the amendments. On the one hand, what Ms. Oaras does in her amendment is puts us in the drivers seat, I kind of like that. On the other hand, it does send a mixed message and I think we can avoid the one year contract because we still control the budget, ultimately. Ido whatever this body wants. Im going to follow whatever everybody does right now. But the last thing we want to do is be fractured, because we have been unified on this issue from day one. We sent a clear message, with regard to the nine nothing vote earlier or the zero nine vote. So, you know, if it means we have to hold this maybe we should, we can kind of think about it for a little while, but we cannot risk being fractured. That all. CHR. POINDEXTER: Any other Council t have a turn yet? No? Im going to go to Council Member . MS. : You also have in your pinkies folder one forty point two, which was my original intent to bring to Council until I got here today and I saw Sues modifications to this, which was intended to be a resolution by substitution. And I did work with the County Clerk on this and it did go through LRB (Legislative Research Branch). In that version, one forty point two, the title is the same. It has not been changed. So Im sorry, CHR. POINDEXTER: Yeah, its a different title again. MS. : strongly recommending a multi-yearauthorizes the payment of funds. Yes, so it is different, but we did get concurrent from LRB on this, in terms of changing the title. And we did work with the clerks on it for submitting this as a resolution by substitution. So it is different than the original 101. I understand what your hesitancy is in terms of potential mixed message, but I also know the procurement methods that are available and what might occur without about. CHR. POINDEXTER: Any other discussion? I think we still need discussion but to everybody else, no discussion? Okay, Council Member Kanuha. MR. KANUHA: Just tryin going on. We have a contract right now that is going to be renegotiated and amended Page 42 -9 April 5, 2017 Mr. Kamelamela? (Note: At this time, Corporation Counsel Joseph Kamelamela came forward to address the Council.) MR. KAMELAMELA: Sorry, Joseph Kamelamela, Corp Counsel. MR. KANUHA: Currently, what we have right now is cancelled contract? MR. KAMELAMELA: Its a notice of termination. So, there is an effective date th of June 30. That is why were trying to meet the deadline. I do want to answer the question thats being posed. We all know and thats why I like Mr. Chungs idea about sending the message. We know that our resolutions usually have no force of the law. But at the same time, when the County Council do approve a resolution, it does have some weight. So, thats what I wanted to address right now because its basically a gutted substitution of a resolution that was done at the Committee level. So the message, as I understand it listening, it is mixed. When it was down in the Committee level, it was clear as to what the Council wants to do. Itow, you are coming up here with something different. So even if you pass this, people can look at the Committee meeting to see what people will recognize that the intent, although, as described by Ms. as being well intended, its going to show up as a mixed message. t know if that is the message that the Council wants to send, but its up to the Council because like right now it is firm, nine zero, dont have it. That the message. Now it has changed a little, in my mind, but its up to the Council. MR. KANUHA: Thatre trying to discuss. What the next steps are because, I think, the administration got the understanding that we dont want the contract to be terminated. We want it to be modified and amended to certain specifications that were laid out and the community doesnt Im just going to speak for myself, but being in the location that its currently at is not the most ideal place that we want to put it. So, how do we work that out and how to move forward with those recommendations coming from the Council. Thats where we need to be and I dont want to change that direction by playing around with this thing, you know. MR. KAMELAMELA: s why I like Mr. Chungsuggestion. Hold that part off because there are resolutions that were passed, which is as clear as what was passed at the Committee level. I read the resolution, most of it, dealing with okay, lets not have were all on board as a County Council on that concept. Whether its necessary now to pass this one, is a question for the County Council. MR. KANUHA: I threw that out there for my sake, thank you. Page 43 -9 April 5, 2017 CHR. POINDEXTER: Okay, Council Member Ruggles. MS. RUGGLES: Thank you. Mr. Kamelamela, if you could please stay just in case. This is a question for Mrs. Oara and Mr. did the intent of the resolution is to prevent the administration from going through a procurement process outside of Council approval for green waste diversion? MS. : Pretty much. MS. RUGGLES: Okay, thank you. Mr. Kamelamela, does this resolution, if it passes, will it accomplish this? MR. KAMELAMELA: Do you want my honest answer or a legal answer? MS. RUGGLES: Both. MR. KAMELAMELA: No, it wont accomplish it. Mr. Chung was ready to stand up. MS. RUGGLES: What is your legal answer? Is that your opinion? MR. KAMELAMELA: No, if I was to give you a legal answer, I got to go to into executive session. MS. RUGGLES: But your opinion is no? MR. KAMELAMELA: My opinion, without having to go into executive session is no. MS. RUGGLES: Okay, thank you. CHR. POINDEXTER: Our Mayor has joined us, too, so if we have any questions, Im sure he would be more than happy to be up here. Did you have something, Council Member Chung? MR. CHUNG: I couldnt let that pass, of course, right, you want the honest answer or the legal answer? Theyre supposed to be the same thing, right? I mean, we always want the honest answer, right? CHR. POINDEXTER: I think hes saying the legal because we got to go into executive session he said, so. Does anybody have any questions for our Mayor even or questions on what to do with this? Go ahead, Council Member David? MS. DAVID: Aloha, Mayor, wbeen having a real difficult time this afternoon. Page 44 -9 April 5, 2017 (Note: At this time, Mayor Harry Kim came forward to address the Council.) MAYOR KIM: I have to warn you because I have been tied up in meetings all day you got to catch me up a little bit. MS. DAVID: Well some of us dont even know what is going on at this point, where we are in the process. So, Mr. Kamelamela my question is, I understand what Ms. O is trying to do. She wants to guarantee that at least anything that happens, as far as procuring another contract, will come to the Council for review. Is that correct? MAYOR KIM: Yes. MS. DAVID: Okay. Earlier, you said that the contract has been terminated and t you say the contract, at this point in time, that letter has not been withdrawn yet, right? So, as far as were concerned right now, the contract is terminated MR. KAMELAMELA: Nonotice of termination. MS. DAVID: Thanks for correcting me. So, the notice of termination has not been rescinded. MR. KAMELAMELA: Right. MS. DAVID: Okay and this resolution is basically the safety net. So, what if we dont move forward on any of this, can the administration go forward with any contract one year without coming to the Council? MR. KAMELAMELA: Well, the charter, I believe it is article ten, it does allow for contracts for one year. There is somethingthe way you said kind of made me think about this. We are in negotiations, you know, I think having this now put forth, you know, I think it should be held in abeyance until we go back and talk to them. t want to send mixed messages, too. That is my issue. Thats my personal issue with something like this. MS. DAVID: I think I agree because I think everybody elseyou know, I speak for myself; I think I like that idea only because if we take this time to postpone it to see what happens when the discussions take place with the community and with the contractor, we would be in a better position to make a decision. Like I said, I still have hope that based on this mornings go around with the community, that we are going to move forward and this may not even be Page 45 -9 April 5, 2017 necessary. So whis concerns are, Im glad Mayor that you are here, MAYOR KIM: Do you want me to make it easy? MS. DAVID: No. Well, you could if you make the right decision. MAYOR KIM: You sound like my wife. MS. DAVID: Well, there are six women on this Council so, anyway, I appreciate you being here. That was my question. I think I like the idea of holding this off until we can see what happens in your negotiations or your conversations with the contractor. And hear what my other colleagues say. MAYOR KIM: Can I comment? MS. DAVID: Sure. Thank you. CHR. POINDEXTER: Your microphone. Mayor, you can press the top. Okay, I MAYOR KIM: t trying to make light of this and I guarantee you I am not. I just got through with a long meeting with the CEO of the company, HER, a request for a meeting was by him. We agreed on this afternoon, he flew in, we talked. I literally just came back fromnot making light of what must have been hours sitting up there and talking about it because I think you started this morning. I dont think there is a problem. I really dont. This is what we did and probably cringe, you know how attorneys are. So, just kick me if Im violating any legal things. I saw the contract, I listened to the people of consulted people who are smarter than I am in reading contracts, I consulted the DEM (Department of Environmental Management) people; you look at even records of past in negotiation of the contract, and certain things, as you know, struck out that was not good, I thought, for the product. Not one time did you ever hear Harry Kim say, the product of what were trying to accomplish was bad for the island and it was desirable. Who does not want to find a good use of food waste and make it a productive product? The issue was in regards to the flags that started to stick out when you consult people and you read your contract. Whereas, this was not a good contract for the people and County of in regards to pricing. And there were other issues that no matter how you twist it, it becomes pricing, like I saidquestion, what is the finished product 100 percent belonging to the contractor? The contractor has said even in this room, that their intent is to sell it. Well, if you had two and two, that means all of our mulching element goes to that process. So even on the mulching product, there would be none to give to the Page 46 -9 April 5, 2017 public. Those are the red flags in regards tois this a good contract. On the pricing change you saying this contract was executed July 1st, 2016. How long will it be before we finish this site? At that time, you stay a minimum of one year because they have not even started. They will bill it, we pay for it and a red flag on pricing again. m going to pay for a finished product, as they say, averaged out commencing July 1st, 2016. I know where I am at that timeFebruary 2017, so I add another year or more for the finished product. care how you average them out, I said this is not going to be right as far as pricing. When the other issue came out, in regards to location of it, by that time already had stated on finished product, on cost factor, it was not a good place for County to be. I want to see if this can be negotiated and changed. Now, I am going to say for the first time for you to understand and Im not saying its an absolute right decisionm saying with all the advice of God in regards to even DEM (Department of Environmental Management) people that I depend on, who were involved with the negotiation. You know, what was the problem here or there and all ore not here to throw mudjust make a decision in what was best. When the issue of comes up, they go, wait a minute, when I looked at the EA (Environmental Assessment), the EA said no negative adverse effects for the community. When you look at that, this is after that meeting when you catch up on everything, you go, my goodness, how can the County who paid for this EA say to the community, this is the contract we signed that says no adverse effect. You dont want that to make this a main issue in regards to why, but itis part of the issue because of this. I need to renegotiate this contract. Not just the pricing, obviously, the whole element of your people that you brought over in regards to looking. And I told them right nowI told them in the meeting Im very ignorant on the whole contract and before I can say anything I got to look at the contract. I got to read it. So I told people to read it, including people from DEM, including attorneys. After the whole thing is reviewed, I thought it was common sense on my part. If you disagree, fine. m just saying my part. It wasnt their decision; they recommend as lawyers do. DEM recommend as they do. I made a decision of putting it all together. If I dont cancel this contract, what is my bargaining position in regards to this contractor? I have to now make a priority with all of the other things the re relocation of this Its not easy to read it in black and white but I think you know what it says. On top of that, the contract during the EA provided no alternatives except . So, what did that mean to me if I just call them in and say I got to renegotiate this? It is entirety a very important part of that contract. Your mind goeshow much time will this take and how successful will I be? Because they have a contract that says, signed, sealed, and delivered they will build this facility in and here's all the cost factors relating to that agreement. My mind goes and I ask how long do you think it will take us to negotiate with them that this pricing and everything continues? I cannot abide by that contract because it says . But, I cant do that. Last night was at least two years; maybe more, Page 47 -9 April 5, 2017 maybe less, depends on the site you find in the EA and allthat thing. So, I made a decision to put me in a bargaining position with this company of things I had to change. m going to cancel this contract. They were called in, as you know. I am considering cancelling this contract. I asked the attorneys and everybody else what are the consequences before I made that statement. His opinion and advice was be advised, theres a possibility of breach sue. Of course I weighed that but I weighed this side, which is worse, which is better? I knew and I still believe it, to get your finished product that everybody I know thinks is good for our waste, this is what I had to do. Cancel the contractnotification cancel and you were here when we talked, at the time I told him that. I want to take this time now to talk to you about how we accomplish this. The goal was this; a seamless, you heard me say that, a seamless transition continuation of the mulching aspect of it, which include enhanced mulching. So people can continue to pick it up without worrying about the fire ants and and anything else in that pile. Well, it takes me two years more or less to finish the other side, so we can get the finished product we want in used food waste. We got no response from them at that time. Joe will tell you, I instructed him to call them to say are you open and I say that to him face to face here during our last hearing on that. Remember, we are open to talk to you how we go forward from this. Why did I tell you there is no problem? I know Im asking a hell of a lot. Im asking you to trust me that we will come up with them and agree to present to you as you requested, in what we consider is a good contract to achieve what we want to achieve within the price that we agree, including what to do with the final product. I just spent an hour-and-a-half with the boss. He gave me a bad news element but he said he will not delay what they promise, to come back to me with a so-called pricing adjustment. The bad news is Mr. Cummings is going to leave the company, thats the guy we have been dealing with, but Mr. Cummings had to leavehe might be there right now, because his mama is sick and hes going to take care of his mama in Texas. The guy that is going to replace him is from Seattle, so there will not be any break. We promise each other two gentlemen of total trust on whatever we present. I told him almost everything I told you but in detail. I cannot put it in . We will lose. I really felt we will lose. How can we win when we state we paid for the EA, states no adverse effects. Look on from this side, a ready-made suit, come on in; we challenge you. My advisor is telling me that you are going down a deep road on that for a long period of challenging courts. All the time, Im paying him the final price. Of course I made the decision that is best for the product of what you want, what the community wants and what we want; responsible for what you say to do. I am doing that. This, I will tell you of confidence, the County Government of that we represent of you and everybody else, will come up with a finished product Page 48 -9 April 5, 2017 addressing the pricing adjustment of whatever they say. We promise each other fairness of that. Once that is completed, in my hunch it will be completed in a couple of weeks, on the enhanced mulching side. Once that is finished, we will sit together to see how we can implement the other part of the contract and we will come back to you to say this is what we have. Its not going to be in a short time. Theyre the ones doing the initial negotiations saying its going to take a couple of years, more or less. We are not going to resolve that immediately. We have to find sites that are suitable. I think you know by now, the nice dressing that it is the odorless and clean is not true. Is absolutely not true. I think you can find that out very easily by calling the people on the mainland. Thats the product. So we have to find a place that is acceptable to the community. And for the record, I know of the hostility towards usmeans of Government to put the sewage plant there. I cannot tell you how many times I appeal to the administration during Civil Defense, go down there and smell the h two s levels of three to eight parts per billion every day right across the street. Did I tell you to the planes flying right over the school and of the rubbish dump, as we used to call it? I promise you with everything I can say; we are working with that company to resolve these problems. I told themI trust that you and I have the same goal. Thats why I said, I dont think s a problem. I truly believe we will come back to you and say, we believe this is a good contract. CHR. POINDEXTER: Thank you, Mayor. Council Member , you have your light on. MS. : Yes, and thank you, Mayor, for elaborating on that. If I could just summarize what you just said because I want to be absolutely clear on what you just said. Apparently, we need to provide that to the public and to the Council. You are saying you are committed to negotiating with this company to keep them on this contract, and that there will be you say a smooth transition. There should be no transition on the enhanced mulch because theyre already doing that and got that operation down, so that just going to continue. Is that correct? MAYOR KIM: The word seamless transition was made in regards to commitment that we realize the responsibilities of continuing the mulching. Primarily, we cant throw green waste into the landfill absolute. With this negotiation, ths the first thing going on waiting for them to come back with a pricing. MS. : saying that, what is happening on the ground right now with the enhanced mulch will continue seamlessly. And you are aware that there are tonnages established in the contract that they have to meet at the enhanced mulch at the various locations. There are three locations; Page 49 -9 April 5, 2017 transfer station. So when negotiating the second phase of this contract , which is the in vessel hot compost were going to call hot compost. When you are negotiating that portion, you expressed concern that the enhanced mulch would not continue, but this contract specifies they must maintain a certain tonnage at these three locations. So, there will still be the enhanced mulch free to the public. MAYOR KIM: This contract is an island- wide contract, as you know. MS. : Yes, okay. MAYOR KIM: -wide contract as you know and obviously the composting phase of it does not include much mulching from the west side. So, obviously, that will continue in other places that will not involve composting will continue. MS. : As I understand it, as the enhanced mulch is operating right now, we are back hauling the shredded green waste from the West landfill it does not get picked up as much as it is here in East theyre now doing the enhanced mulch in what we used to call Andreas th beautiful and the new product is available as of April 17m happy to hear that will continue. My concern here is when you talk about pricing. I happened to be made aware and Im sure you are aware of it too, there was a cost comparison done for this contract; when it was issued, only one bidder or one proposer came in and that was Hawaiian Earth. When you have only one respondent, you must, under procurement law, seek a third party cost analysis to ensure the County is getting a good deal. That was done by HDR, Inc. and they determined the proposals for pricing were reasonable. Not only were they reasonable, they were cheaper than other similar contracts. So in that regard, I want to be sure that you understand that pricing was done on the expectation that they would own the hot compost at the end of that process and be able to sell that for the profit. And that profit was estimated as part of the blended pricing, so they could give a flat rate over the ten- year period. So we are asking them to defer building the in-vessel composting, what you referring to the findings of no significant results in an EA. That was an in-completed EA and it would behoove the County to submit a request to withdraw that EA because it was never completed. The fonzie was never issued, so it would behoove the County to withdraw that EA. MAYOR KIM: That was done MS. : the withdrawal was done, oh great, good to know. With that, if there is modification to pricing, since they have to wait longer to get the revenues from that hot compost. If anything, that would force their pricing upwards not Page 50 -9 April 5, 2017 downwards. So if that company stays on contract at the existing prices which they quoted us, were pretty much getting a deal. I just want to be sure in our negotiations we dont try to squeeze this contractor to the point that they leave this contract. We were told by HDR, Inc., in the cost comparison that these prices were reasonable and, in fact, cheaper than other contracts across the State. So, I just want to keep that in mind when we pursue these negotiations. Thank you. MAYOR KIM: ER, we had a very good talk with some of those things; you know your job I know mine. Your job is to get the most from me and mine is to get the least. hey are going to say this is the best price Council to trust. Were going to try to negotiate the best contract that we can present to you. On the composting, in regards to the product itself, even on that they realize of 100 percent to them of no control, which is several million dollars. Those are the things were going to talk about. I do not know what the final negotiation is and Im not going to do it here because I dont have the knowledge of what those sticking points are. All Im asking is you to trust me that I knew the whole project; the composting and the mulching, including enhanced mulching. I found parts of it to be not good the people of this island, whether it be on pricing, whether it be a location, which came at a later phase of it, but that became a major phase in regards to when we can execute it. It will affect the pricing on certain averages on cost maybe not much, but they will. The main issue in regards to is when does that pricing take effect. At the present time, at the very minimum, its going to be at least another year- and-a-half. talking about whattwo years plus, going on three years we are paying a finished product. I heard testimony here in regards to people whose livelihood was delivering the mulching product. We talked about that also, just in general, because were not going to negotiate anything in discussing this. What we talk about is in a lot of places, believe it or not, the finish product, you are stuck with it. Its a cost factor to them. I said, I guarantee you its not going to be a cost factor of you being stuck, not in this place and he knows that. He said that, it will be negotiation now. How do we handle this so its a fair split of the finished product? Not for me, not for the County, but the public. Im asking you to trust this administration that I hear your concerns. You do what you are going to do, I know. I just came down and thank you for this opportunity to tell you the background of the decision making. I felt, the best decision to go forward in regards to all the things we have to address, was to notify them of cancellation so we have a place of position to negotiate. Ithe only bidders for the whole process. CHR. POINDEXTER: Council Member Chung. Page 51 -9 April 5, 2017 MR. CHUNG: Actually, Im not going to make comments. I just wanted to make a clarification to this interplay. Mayor, you mentioned HER when you said, of course they are going to say its the best price. But what Mrs. Oara said was it was HDR, I think, that did the cost analysis, not HER. I mean, very important because based on what you said and you mentioned HER, and then you went into that whole dialogue about of course theyre going to say that theirs is the best price. Were talking about two different things, so I wanted to make sure. MAYOR KIM: Its two different things but the fact is not of that statement, the fact is in closing in negotiation of the contract that we signed. In their minds it was the best price for us, this is when he brought out information that it was a cost factor to get rid of the product and those things. Point of Order: MS. : Point of order. CHR. POINDEXTER: Okay, so, you still have the floor, Councilman Chung. MR. CHUNG: I dont know how to answer that really. It just gets more confusing, I hate to say. MAYOR KIM: Mr. Chung, you know, fine, if I intertwined the twoying naturally any contractor who said this is of a good price uilding my house or anything. MR. CHUNG: The thing about it is, this is my understanding, and I could be wrong because we werent involved in any of the negotiations. We took a hands- off approach on all of that. We set the authority in place, we let the administration do their thing; they came up with something. But, I dont think that HER set the termsthe contractor set the terms of all of this, it was the County who set the terms. So we set the terms and we double checked it, because it was only a single bidder. So we have got to make sure, because I dont want the public to get confused on this. MAYOR KIM: Mr. Chung, I dont think there is any confusion on this. In regards toI think the minutes of the negotiating committee of the County is available for you to review, in regards to almost a dead end in negotiation of conditions of the contract. This is not of this contractmost contracts you get to points like that; how much or who is better s, or etcetera. Regardless of who agreed to what, the contract was agreed. I came inwhen I came in to review the contract of different information and said, I think I would like to renegotiate this contract. Its not a good contract for the processract, as I said later, for the location. Im stuck to follow this contract and to try and go in and say I like to modify this contract, you know. Page 52 -9 April 5, 2017 MR. CHUNG: Madam Chairman, not to interrupt the Mayor, but I brought up one point. It was a point of cla MAYOR KIM: I apologize about that. MR. CHUNG: I have so many concerns, and questions, and unanswered questions but I will just stick to my current position and we just hope for the best. CHR. POINDEXTER: I know we got to move things along too, because we put off the other things in our agenda and this, remember, were just on the authorizing the Mayor to do the contract. Were not in the previous one, which was another resolution. So, I think were getting everything all miss-mashed on Resolution 101, right now. So, Council Member Ruggles. MS. RUGGLES: Mayor Kim, I wanted to say thank you for being here and for having this discussion with us. eally valuable. From what Im hearing, I want to make sure Im also hearing you correctly that your concerns are that a 100 percent of the finished product belongs to the contractor. And that the location is a concern and re involving. DEM (Department of Environmental Management and the EA states there is no adverse effects and this is very problematic because of these reasons, you feel you need to renegotiate the contract in the spirit of fairness. MAYOR KIM: That and other concerns, yes. MS. RUGGLES: Okay, well, I just wanted to say thank you for coming here and telling us directly where your reasoning is. I support you in that and that Im also hearing that in a couple of weeks, you will bring a product to us? MAYOR KIM: I want to make sure what is being negotiated now. They told us, and we met last week Thursday that within a couple of weeks they will come back to the committee, in regards to the proposal for the re-price of the mulching and enhanced mulching. Once that is completed, he said this afternoon, lets get this done and we work on the second phase of the composting side. Hopefully, we will present this to you in a reasonable time. MS. RUGGLES: I also just want to mention, there was another site mentioned earlier in discussion that Mrs. Oara has information on. MAYOR KIM: Yeah, I guarantee you we will be looking. Hopefully, we will find two or threeminimum two sites or more, that are acceptable. CHR. POINDEXTER: I just want to remind the Council Members, I know were trying to talk about the contract, but just to remind you re on Resolution 101, which is authorizing the payment of funds for later fiscal year for the agreement Page 53 -9 April 5, 2017 of furnishing green waste diversion operations in So I know it all comes together, but if we can stick to that resolution. Go ahead, Mr. Kamelamela. MR. KAMELAMELA: We are going to go and talk to them next week, Wednesday. What is concerning me the most now, is we continue to talk about certain issues out in public. I understand what Council Members are stating. But when the Mayor said, trust us, there is a reason for that, because if we try to get argumentative here out in the open, HER is going to pick up on it. The attorneys are going to pick up on it. When I go to the negotiationst argue with HER as to who has the better legal arguments or positions or why when one price is better than another. I mean, I understand the process, but thats my concern. I want to make sure that I go in having the full support of the Mayor and the County Council, because this is hard work. This is not easy work. A lot of things happening on this contract is complicated, is challenging, is complex. When I was in the executive session, I was trying to explain a lot of things to the Council, but I was told to cut short. So, you know, thats okay, but Im just asking, we can have another discussion after next week. CHR. POINDEXTER: Okay, thank you. Again, I want to remind everybody were not talking about the contract, the termination, or the possible termination of the past contract, what is on the floor is Resolution 101 for the new contract for three years with the option of two 1-year extensions. This is what is on the floor right now. If we canbecause we can stay here all day talking about the existing contract right now with the notice to terminatenot what is on the floor right now. Council Member Lee Loy. MS. LEE LOY: Mayor and Mr. Kamelamela is the notice of termination allowed you folks to get back to the table with the contractor. There was a whole bunch of other conversations that happened with us as a Council, then along came Resolution 101. That unfavorable recommendation sent another signal to make everybody, both the administration and the contractor, work hard at finding some solutions. Now, what we have before us is us trying to send another message. To get through this, I am willing to withdraw my amendment, hold Resolution 101 with a clear message that that how unified this Council is, to keep contract negotiations or whatever conversations you have, honest, everybody working hard knowing that there is a deadline. The notice of termination was given, but the absolute cancellation, from what I hear, occurs on June 30. So this, I think, is the way through but Im not willing to give up the ability or the hammer for everybody to stay at the table, and work hard, and not forget the community. We said it earlier todaynot profits, its people down right now; as its about profits. Its about people and community. So thats where I stand, thats how I kind of want to get through this, and I just want to hear what the rest of my Council Members have to say. Page 54 -9 April 5, 2017 CHR. POINDEXTER: Did you make an official withdrawal of your communication at this point, and suggesting perhaps there should be a postponement of 101? MS. LEE LOY: I want to hear CHR. POINDEXTER: Okay, so did you officially make a withdrawal of yours right now, at this point. MS. LEE LOY: I dont want to because I want to make sure thats where were all going. CHR. POINDEXTER: Okay, so, Council Member Richards. MR. RICHARDS: Thank you, Chair. I appreciate Councilwoman Lee Loys willingness to with draw, but I also appreciate her cautious approach and not withdrawing until we have a clear outline of what are doing. Mayor, I have heard you say, trust us, and I think we will be operating on that if I understand the direction of our Council. It is a very unified belief and decision that we are headed. So, as I understand, and I will articulate, and Councilwoman Lee Loy if you will agree by withdrawing and then tabling 101 to the call of the chair will maintain the ability to quickly call it back to the table and put our amendments back in place. And thereby, like you said, maintain a hammer. I would support that to move this conversation forward with the understanding that we have and placing trust in you, Mr. Mayor, for getting this addressed within the timeline, which will be at the end of June, correct? MS. : It needs to be before the end of May. MR. RICHARDS: Okay, that is how I understand it and I will support what Councilwoman Lee Loy is proposing. MS. LEE LOY: I far as saying to the call of the chair, just to the next meeting because they will keep working hard. Every two weeks, we will get an update. That i. They will tell us what is going on and where we need to be. CHR. POINDEXTER: Thank you. Council Member Eoff. MS. EOFF: Thank you. I would support that approach as well. I think we have the safety net we want in place because earlier today, when we unanimously approved urging the Mayor to rescind the letter of termination with the amendments in there, that completely changed the location. We all agree that the original location is not going to fly, so. We already sent out that message to you today, earlier. So right now, I think, Mrs. Lee Loy is correct that Page 55 -9 April 5, 2017 rather than act on this Resolution 101, either way, because there is a couple ways we could go on that one. By not acting on it, we have not authorized the administration to go after any other contract at this point because that was what that originally was asking us to do. So, we still are strong on that, were not looking for that, were looking to mediate the current contract and to amend it in ways that it would be good for everybody; become a good contract, not result in a lawsuit, and continue our enhanced mulching leading towards eventual compost, which we all believe is a great goal. I think we can trust that you are seriously in that samethats what I heard you to say, that you want us to give you that time to do those things with the current contractor. So, I think that would be a path that I would support at this point. CHR. POINDEXTER: Thank you, Council Member Chung. MR. CHUNG: Thank you. With regard to the timing of all of this, I certainly dont think we can wait all the way until June 30th. We have some budgetary concerns coming up and have to be integrated into the budget. We dont have too much time. A lot has been talked about trust. Not anything against you guys, but yesterday I was appointed as Vice-Chair of Housing, in my absentia, okay. Now m going to do the same thing to one of my colleagues if shes so inclined. I dont know if you guys are willing to entertain this, but I would trust you guys or the process if you allowed Mrs. Oara to be involved in those negotiations. She knows this subject inside and out and I think she would be a really good voice for us, because I think that lacking in the discussion. I really do, no offense intended. Are you guys willing to have her shes willing to be involved but are you guys willing to allow her to be involved with those negotiations? MAYOR KIM: I dont know. I will let you know. CHR. POINDEXTER: Thank you. MAYOR KIM: I would like to add one thing. As Im just sitting here listening toif you ask yourself this simple question, where would we be today on this project if we did not do what we did? Where would we be today if we did not take the actions we took, in regards to this whole project? We would be trying to negotiate with contractor to change major aspects of it that would automatically delay it years, anyway, or at least two years. In regards to trust, Mrs. Lee Loy, I will be totally honest with you, I never had to try to convince people to trust me. I say what I say and I do what I say. You can pass this, whether you pass it or not I will work this same degree of hardship. I do what I do because tha my job, not because of a resolution pass. CHR. POINDEXTER: Thank you. You still have the floor, Councilman Chung. Page 56 -9 April 5, 2017 MR. CHUNG: I will tell you where we would be, in my opinion. First of all, the unity raised a lot of issues, not saying you reacted to that but it had something to doand Ms. Lee Loy was right there on the front lines advocating for her community, instead of cancelling the contract or notifying of a cancellation. Immediately going to negotiations to change the site, possibly adjust some cost or at least be cognizant of what the cost ramification might be to the County, instead of going unilaterally towards a cancellation; that would have been the better way to do it. I be real frank with you, Mayor. I dont understand that strategy. told us is you did what you did because it would put you in a better position or put the administration or County in a better position to negotiate. I disagree with that. MAYOR KIM: Mr. Chung, Ill end this right here. I said that was my decision, based on the best way to get us where we want to go. You clearly make it you disagree, fine, I disagree. I took the action I took and where we are today, to me, you know, as far as where I want to get with this contractor well get there. MR. CHUNG: Right and I got no problem with that, but he asked us to ask ourselves. So, Im answering. I asked myself and I answered. CHR. POINDEXTER: Thank yo MS. O: Thank you Chair. I just want to get two things absolute clear, Mayor. One is when I referred to a third party cost analysis; that was not a cost analysis done by HER , that was a cost analysis done by HDR. They were a third party, that were called in and that cost compare analysis was done prior to the contract being signed. Is required under procurement law when there is only one bidder and they found the prices reasonable; not HER; HDR found them reasonable and I want that understood. Were talking a third party. Secondly, I understand now that you have sent a withdrawal notice to OEQC (Office of Environmental Quality Control) on the draft EA. When was that submitted? MAYOR KIM: Yesterday it was given approval to submit it. MS. O: Yesterday? MAYOR KIM: Yes. MS. O: Okay. So, you asked where would we be if you had not taken the cancellation notice. I think we would be a lot further down the renegotiation path, because that notice to OEQC should have been sent as soon as you hit office if this was your intention or soon thereafter. We would then be starting on a new process of EIS (Environmental Impact Statement) or EA (Environmental Page 57 -9 April 5, 2017 Assessment), which would, hopefully, be done right where we include multiple locations that are not located within the area. MAYOR KIM: It took me a while to get the whole picture. I dont work as fast as you, granted it took me a while to find out where we were on the EA, who was hired on the EA, what was the condition of the EA, and then they start toand we promise people and extended thirty day period. All of that I had to understand. There is no way, even now in hindsight, would I be able to see you and tell you that in that one week time or one month time, I would have been able to make that decision that I made. Like I saidt work as fast as you. MS. O: I appreciate that, but you kind of threw that out as where might we be. The cancellation notice didnt drive this process. What would have driven the process is rescinding the notice on the EA to the OEQC (Office of Environmental Quality Control). Then, we would have proceeded differently, but it is what it is. MAYOR KIM: I said the EA was only a part of it and it came down the road later on. I was getting my information on all the other things that I said flagged out that I did not think this was a good contract. CHR. POINDEXTER: Okay, thank you. Council Member Lee Loy, you ready to do the withdrawal and postponement? MS. LEE LOY: Yeah, motion to withdraw communication, and motion to postpone Resolution 101-17. Withdraw Motion Ms. Lee Loy withdrew her motion to amend Res. 101-17 to Amend: with the contents of Comm. 140.5. CHR. POINDEXTER: You need a motion to withdrawal, but then, that th MS. LEE LOY: Motion to postpone Resolution 101-17 to April 19. Motion to Postpone: Ms. Lee Loy moved to postpone Res. 101-17 to April 19, 2017. Seconded by Mr. Richards. CHR. POINDEXTER: Page 58 -9 April 5, 2017 Vote on Motion to The motion to postpone Resolution 101-17 to April 19, 2017, Postpone: was carried by the following voice vote: (Approved) Ayes: Council Members Chung, David, Kanuha, Richards, and Acting Chair Eoff 9. Noes: None. Absent: None. Excused: None. th CHR. POINDEXTER: Resolution 101 is postponed to our April 19 meeting, in Kona. Thank you, Mayor, and thank you, Mr. Kamelamela. So I know we have department heads, but we also have Mr. Yeh them who has been waiting all day. k if we could take Bill 10 out of order, is that is okay? Change Order of As directed by the Chair and with no objection from the Council Members, the Business: following items were taken out of order: ORDER OF THE The Chair directed the Council to proceed to the next order of business, Order of DAY (SECOND OR the Day (Second or Final Reading). FINAL READING): Bill 10: AMENDS ORDINANCE NO. 12-111 WHICH AMENDED ORDINANCE NO. 99-116 WHICH AMENDED ORDINANCE NO. 96-159 WHICH AMENDED SECTION 25-8-33 (CITY OF HILO ZONE MAP), ARTICLE 8, (2016 EDITION, AS AMENDED) (formerly referred to as Section 25-114, City of Hilo Zone Map, Article 3, Chapter 25, Zoning Code), BY CHANGING THE DISTRICT CLASSIFICATION FROM SINGLE FAMILY RESIDENTIAL 10,000 SQUARE FEET (RS-10) TO NEIGHBORHOOD COMMERCIAL 7,500 SQUARE FEET (CN- COVERED BY TAX MAP KEYS: 2-2-044:003, 031,032, 035, AND 037 (Area: 322,414 square feet) The Windward Planning Commission forwards its favorable recommendation for amendments to Conditions C, G, and Q of Change of Zone Ordinance No. 12-111, which would: 1) Grant a time extension to secure final subdivision approval; 2) Modify the timing of installing drainage improvements; and 3) Reduce the fair share contribution provision for this assisted living facility. Reference: Comm. 81 Intr. by: Ms. Eoff First Reading: March 8, 2017 ; and Page 59 -9 April 5, 2017 Comm. 81.3: From Council Chairwoman Valerie T. Poindexter, dated March 15, 2017, transmitting a request to place Bill 10 on the April 5, 2017, Council agenda. Motion to Approve: Ms. Eoff moved to pass Bill 10 on second and final reading. Seconded by Ms. Lee Loy. CHR. POINDEXTER: Council Member Lee Loy, you have your light on? MS. LEE LOY: Thank you. Earlier today, we heard a testifier talk about some of the design of the project and how that impacts an existing easement that she has to her property. And I just wanted to Mr. Yeh or Mr. Dewald explain a little bit about the length of collaboration you folks have taken on with them, to ensure that the property or their access to their property will be maintained, and then would not be landlocked or the concern of it not being landlocked. (Note: At this time, Applicant Representative Mr. Yeh came forward to address the Council.) MR. YEH: Madam Chair and members of the Council, good afternoon. Thank you for taking us out of order, first of all. So, basically, during the morning recess, I did provide to the clerk, and you should have a couple sheets of paper. First is a photograph and what the photograph depicts, well, you see this tree line that runs parallel to Kanoelehua, that is the actual location of the legal easement that Ms. Salazar was speaking of. It really has never been used by them and for obvious reasons. Number one, there are trees there and they havebothered to take them down to get access. Number two, from a safety perspective, it really presents a real difficult location for any drive way to be. That is in large part why public works has been hesitant to give them a driveway access there. That was confirmed to me previously by office. The second sheet, which you see, has a depiction of the property and a sight plan, so to speak, and what you see outlined in red; the dotted lines is the proposed access that we have been in discussion with Ms. Salazar to provide them access. If you were to look at the right-hand side of the page, thats where their property is. They would have, basically, two accesses to come out of. One would be the main drive way, which is at the top of the page. And close to the proposed commercial building would be alternative access location, which is 75-feet away or more from the turning radius of the intersection, which is where is the closest location where public works would want it to be. That access would generally be closed, unless the main access was not possible due to very infrequent drainage. So the discussions we had since we last met, was to present to Ms. Salazar this close off their easement or right of access. The proposal; however, is to tell them to basically say because of that access they have now that runs parallel to ble and we need to try and do some landscaping along the roadside of the proposed Page 60 -9 April 5, 2017 building. Perhaps, some retaining walls to provide them this proposed alternative access. There has been some discussion as early as this morning. No final agreement, but what were proposing; not to close anybody off but really to give them a safer alternative access location that really makes sense. It also makes sense for the project. One other thing that I wanted today provide as a history is one of the discussions had been, well, to have this commercial building moved closer to the middle, closer to that common drive we have that their existing legal easement come and turn to the right, but presented that physical turning radius and location issues. We couldt get to that 75-foot distance that the public works wanted. So this seemed to be the appropriation proposal we wanted to present to them. Aside from that, we did send a letter in March of this year proposing some language that would allow administrative extension to occur, in case we somehow went passed this five-year period to get LOMAR (Letter of Map Revision) approval prior to occupancy. We provided a proposed language of our friendly amendment in that letter that we would still hope that the Council would consider as a possible amendment to the current bill, thats where we are at, at this point in time. We did hear Ms. Ford testify. We already applied for the CLOMAR (Conditional Letter of Map Revision) application that she talked about. Thank you. MS. LEE LOY: I really want to support the timing extension because we know s embedded in the use permit, but a friendly amendment to this by letter; I want to support that. What were already experiencing is some negotiations regarding the overall concept and layout and the road layout. Mr. Yeh, if you could help walk us through because there is going to be the LOMAR-CLOMAR, (Letter of Map Revision-Conditional Letter of Map Revision) which were using assurity to make sure that those flood and flood way issues are addressed. Then there other steps related to the subdivision and the parcel consolidation, and re-subdivision, and my concern is were actually run up against the need for more time there because there may be issues with unpermitted structures on the property. And if you can help walk us through that to help the rest of my Council Members understand that this time extension isnt for you folks; its for those unforeseen things like getting the CLOMAR from FEMA (Federal Emergency Management Agency), like the unknown issues with subdivision and the length of time to secure that. MR. YEH: Well part of thejust so start, basically, before we moved forward with the subdivision proposal, we need to get this agreement in place with Ms. easement location; that really is a road to nowhere, re-adjust the whole configuration of the property, and that may create some issues for the applicant, Page 61 -9 April 5, 2017 the part of public works issues. The real process is this; assuming we have an agreement with Ms. Salazar on the easement, we then move forward with the subdivision application plan. Part of the discussion has beenwhen you talk about unpermitted structures is part of the discussion is to give them a chunk of property in trade, so to speak, for this chuck of easement that they would give up. In order to a consolidation re- property to the process and redrawing boundary lines, the process also includes your requirement that you put on the map the location of all permitted and un- permitted structures. The County wont allow you to complete subdivision, consolidation re-subdivision, unless you either get permits for the unpermitted structures or you remove the unpermitted structurest have unpermitted structures on the applicants property but its very possible that there may be some on the Salazars property, so that creates a potential time line issue. The CLOMAR-LOMAR process, in it of itself, has its own inherent delays because we not only deal with the Department of Public Works but FEMA, which is the agency thatIm not sure how much more funding Trump is going to give for one thing to develop manpower. But, the process is we go through the subdivision process, we get CLOMAR approval, we do the drain of its improvements; we may get final subdivision but not going to have occupancy permits until the LOMAR permit is issued. So along the way, there are all the inherent little built in hurdles that may or may not result in certain detours from a time perspective. So, that the process in a nut shell that were a little bit concerned about. As Mr. Dewald has told you before, he wants to get done tomorrow but that may not be the case. Thats why were suggesting that would be a good option for us. Thank you. MS. LEE LOY: Yes, so Im going to be supporting this. I do support the idea of a friendly amendment for the change of zone because its already embedded in the use permit for the project. So actually, this bill in front of us with the friendly amendment for the time does actually meet the use permit and they would actually work together and clearly, there is going to be so many moving pieces with situations thatout of control. Its a letter amendment he has with the Planning Department. MR. YEH: The language that we had is in that March 8, 2017 letter. Basically, it states and administrative extension of time for the performance of conditions of this ordinance may be granted by the Planning Director, upon the following circumstances; (a) the nonperformance of the result of the conditions that could not have been foreseen or beyond the control of the applicant, successors are assigned and that is not the result of their fault or negligent and be granting of the time extension would not be contrary to the general plan or the zoning code, and see the time extension granted shall be for a period not to exceed the period granted for performance of the conditioning up to another five-year period from an administrative time extension standpoint. Page 62 -9 April 5, 2017 CHR. POINDEXTER: Any questions or discussions? Are you okay? No, you can ask him a question or if you may want to have a discussion on this bill? Okay, Council Member Richards. MR. RICHARDS: Thank you. Mr. Yeh, did I hear you correctly that given we go through the approval, again, this is in Councilman Lee Loys district supporting that, you still have to work out the details with Ms. Salazar before the final occupancy or the final permitting? MR. YEH: Well, before we even get to the subdivision application stage, because the subdivision application on the map, you need to show where the easements or accesses are going to be. MR. RICHARDS: Okay, alright, and you feel confident that you will be able to strike an agreement? MR. YEH: MR. RICHARDS: Okay, thank you. CHR. POINDEXTER: Okay, Council Member Chung. MR. CHUNG: Just a comment. It looks like, Tom, you have your work cut out for you. I have some concerns; there are some legitimate concerns that were raised by those objecting to it. But, you know, really Im going to give deference, in this situation to the administration. This was a matter that was considered by the Planning Director. The Planning Director recommended favorable consideration, it was approved by the Windward Planning Commission, and endorsed by Mayor Kimmoved it up to us. You know, if there were any questions, I would have liked to know what they were from the administration. But it looks like it has a resounding endorsement from them, because I would hate for us to go through this whole exercise and have them veto the measure. Then, it would have to come back and we would have to reconsider things, but it looks like theyre in full support. So, I will go ahead and go along with them, too. Thank you. Page 63 -9 April 5, 2017 CHR. POINDEXTER: Thank you, any other discussion or questions? Seeing or hearing none, all those in favor say Vote on Bill 10: The motion to pass Bill 10 on second and final reading (Approved) was carried by the following voice vote: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. Return to Order of The Chair directed the Council to return to the order of business. Business: Res. 102-17: ACCEPTS THE DEDICATION OF ROAD A, CROSSROADS, IDENTIFIED ND AS TAX MAP KEY: 7-5-004:064, SITUATED AT LANIHAU 2, DISTRICT The roadway contains an area of 11,237 square feet and would be used for public road purposes. Reference: Comm. 142 Intr. by: Ms. Ruggles Approve: PWPRC-1 Motion to Approve: Ms. Ruggles moved to adopt Res. 102-17 and Public Works and Parks and Recreation Committee Report No. 1. Seconded by Ms. Lee Loy. CHR. POINDEXTER: Council Member Ruggles, do you have anything? MS. RUGGLES: CHR. POINDEXTER: Okay, any questions or discussion? Hearing or seeing Page 64 -9 April 5, 2017 Vote on Res. 102-17: The motion to adopt Res. 102-17 and adopt Public Works (Adopted) and Parks and Recreation Committee Report No. 1. was carried by the following voice vote: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Thank you for all those hours. Thank you so much, sorry about that. Mr. Clerk, if we could go to Resolution 131-17. Change Order of As directed by the Chair and with no objection from the Council Members, the Business: following items were taken out of order: Res. 131-17: BLOCK GRANT (CDBG) PROGRAM AND AUTHORIZES THE MAYOR ACTION PLAN AND ALL OTHER RELATED DOCUMENTS TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) CDBG allocation of $2.5 million from HUD and program income of $100,000, for a total of $2.6 million of CDBG funds for Program Year 2017. Funds would be used towards projects that benefit persons of low and moderate income Reference: Comm. 184 Intr. by: Ms. David (B/R) Waived: FC Motion to Approve: Ms. David moved to adopt Res. 131-17. Seconded by . CHR. POINDEXTER: Council Member David. MS. DAVID: Yes, thank you and thank you so much for your patience. I cant express our appreciation, seeing you in the morning all day and then this afternoon. So, Housing Administrator Gyotako, Im sorry. Could you please explain to the Council so that if they have questions they can ask you about this? Thank you. Page 65 -9 April 5, 2017 (Note: At this time, Housing Administrator Neil Gyotoku came forward to address the Council.) MR. GYOTOKU: First of all, I like to apologize. I should have submitted a complete packet on this CDB (Community Development Block) Grant. Its a proposed packet action plan that we need to submit to HUD (Department of Housing and Urban Development). Wefinding out in the middle of this month if the 2017 CDBG plan will be funded by HUD, includes funding to the Hilo Adult Care for construction of that structure up at the Mohouli extension. We also have a residential repair program under our existing housing that helps families with their homes; giving them loans and its come under our existing housing in which, Sharon Hirota can explain, if you have any questions. I also have CDBG money going to Kulaimano elderly, this to mostly to do some architectural studies and barrier removals, some landscaping, fencing, and also looking at doing some ADA compliant studies. I forgot to introducethis is Brian Ishimoto from my CDBG section. We also planning to get two vehicles for the Food Basket so they can deliver food to the different sources on this island. We also have Boys and Girls Club where we are try to get them fencing for their property because there has been a lot of homeless traffic going in and out of that and they have this problem with their property. Those are the basic projects we are looking at. We wont know, like I say, until the middle of this month if its going to be funded, were hoping it is. So far, there is talk that President Trump wanted to cut CDBG but theres a big effort in the House of Representatives to keep CDBG funding because it helps a lot of low income and moderate families throughout the nation. MS. DAVID: Thank you very much. I really appreciate all the good programs that you folks represent for our communities. Ryan, your last name was Ishimoto? Would you like to say anything to add? (Note: At this time, Housing and Development Specialist Brian Ishimoto came forward to address the Council.) MR. ISHIMOTO: All I wanted to say is that the action plan is a required document that we need to submit because of the five-year consolidated plan. The County is fortunate to receive the funds directly from the U.S. Department of Housing Urban Development. In order to receive these, we need to do one the consolidated plan, which we are in the third year of our five-year consolidated plan from 2015 to 2019. The action plan contains the projects as the Housing th Administrator indicated and this plan is due to HUD every year by May 15. MS. DAVID: Thank you very much. Before I go to our colleagues, I want to thankI saw Mr. En Young in here. I know he supported this measure too. So alright, I yield, thank you. Page 66 -9 April 5, 2017 CHR. POINDEXTER: Any other questions? Council Member Kanuha. MR. KANUHA: Thank you. I think you mentioned that the emergency food MR. GYOTOKU: Yes. It is two refrigerated cargo vans or trucks that are refrigerated. They had requested those to deliver, I guess, produce and fresh foods to different locations that they service. And they will be used both in Kona and in Hilo. MR. KANUHA: e vehicle, so. MR. GYOTOKU: I think they requested refrigerated trucks. MR. KANUHA: Okay, thank you. CHR. POINDEXTER: Any other questions or discussion? Seeing or hearing Vote on Res. 131-17: The motion to adopt Res. 131-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Thank you so much for coming. I need to ask the clerk, I friendly amendment, but they called it a friendly amendment to build ten. But it was an administrative extension of time for performance of conditions to the entertain that because that was the final reading; the bill and that is not in the amendment. The bill is not amended to include what they were requesting. So, I MS. LEE LOY: If I may, Chair? CHR. POINDEXTER: Sure, Council Member Lee Loy. Page 67 -9 April 5, 2017 MS. LEE LOY: our Rule 15, motions for reconsideration. My understanding will be done in writing and it has to be done within five days of this decision. I do want to talk to the applicant, and forgive me because I just dont understand the protocols as far as, you know, when they send information, if its on the Committee Chairperson to vet those things or its up to the individual Council Members. Im still learning that. I am very supportive of that just because you sawthis stuff could take a while and there is going to be stuff out of their control. So I would like to consider that, pursuant to our rule. CHR. POINDEXTER: Can I just take a brief one-minute recess and talk with Jon? Brief recess. Recess: At 4:26 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 4:30 p.m. CHR. POINDEXTER: Okay, we got through with 131-17. Mr. Clerk, can you read in, I guess, the companion bill is Bill 24. Bill 24: AMENDS ORDINANCE NO. 16-72, AS AMENDED, THE OPERATING ENDING JUNE 30, 2017 Appropriates revenues in the Federal 2017 Block Grant account ($2.5 million) and Block Grant Program Income account ($100,000); and appropriates the same to the Hilo Adult Day Care Construction ($800,000); Residential Repair imano Elderly Renovations ($670,355); Food Basket Emergency Food Transport Acquisition ($200,000); Boys & Girls Club Facility Improvements Fencing ($125,000); and Administration, Planning & Fair Housing ($450,000) accounts. Funds would be used towards projects that Reference: Comm. 184 Intr. by: Ms. David (B/R) Waived: FC Motion to Approve: Ms. David moved to pass Bill 3 on first reading. Seconded by Ms. See Loy. CHR. POINDEXTER: Council Member David. MS. DAVID: Yes. If anyone has any questions, we have Housing Administrator Neil Gyotoku still here. If not, I just askthis is a companion to the resolution we just heard, 131-17, and I ask for your support. CHR. POINDEXTER: Okay, any questions or discussion? Seeing or hearing Page 68 -9 April 5, 2017 Vote on Bill 24: The motion to pass Bill 24 on first reading was carried by (Approved) the following voice vote: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Okay, Mr. Clerk, will you please go to the top of the agenda, Resolution 116. Return to Order of The Chair directed the Council to return to the order of business. Business: Res. 116-17: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT FOR THE DEPARTMENT OF PARKS SPORTS WORKSHOPS Transfers $2,000 from the Clerk-Council Services Contingency Relief account (Council District 8); and credits to the Parks and Recreation, Recreation Division Other Current Expenses account. Reference: Comm. 166 Intr. by: Ms. Eoff Motion to Approve: Ms. Eoff moved to adopt Resolution 116-17. Seconded by Ms. David. CHR. POINDEXTER: Council Member Eoff. MS. EOFF: Thank you. No, I just ask for your support. Page 69 -9 April 5, 2017 CHR. POINDEXTER: Okay, any questions or discussion? Seeing or hearing Vote on Res. 116-17: The motion to adopt Res. 116-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. Res. 117-17: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO ANEKONA OULI KANEHOA VFD COMPANY TO CONSTRUCT A GARAGE FOR VOLUNTEER FIRE COMPANY, 9-BRAVO Transfers $5,000 from the Clerk-Council Services Contingency Relief account Volunteer Other Current Expenses account. Reference: Comm. 167 Intr. by: Ms. Eoff Motion to Approve: Ms. Eoff moved to adopt Resolution 117-17. Seconded by Ms. David. CHR. POINDEXTER: Council Member Eoff. MS. EOFF: Thank you. This is the same program that we heard more about at our meeting last time. Mr. Richards had a similar contingency fund transfer, so, I ask for your support. Page 70 -9 April 5, 2017 CHR. POINDEXTER: Okay, questions or discussion? Seeing or hearing none, Vote on Res. 117-17: The motion to adopt Res. 117-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. Res. 118-17: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO FRIENDS TO EBRATION Transfers $2,000 from the Clerk-Council Services Contingency Relief account County Resource Center account. Reference: Comm. 168 Intr. by: Ms. Poindexter Motion to Approve: Ms. Eoff moved to adopt Resolution 118-17. Seconded by Ms. David. CHR. POINDEXTER: -explanatory. Any Vote on Res. 118-17: The motion to adopt Res. 118-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Mr. Clerk, Resolution 119. Page 71 -9 April 5, 2017 Res. 119-17: AWARDS A PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION MAINTENANCE STEWARDSHIP GRANT Valley Lookout property (Tax Map Key: 4-8-004:006), pursuant to Section10- Reference: Comm. 169 Intr. by: Ms. Poindexter Waived: FC Motion to Approve: Ms. Eoff moved to adopt Resolution 119-17. Seconded by Ms. David. CHR. POINDEXTER: This is the Open Space maintenance stewardship grant the resolution forward to have this awarded. Do you have any questions? open and I ask for your support. Any questions, no? Seeing or hearing none, all Vote on Res. 119-17: The motion to adopt Res. 119-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Mr. Clerk, Resolution 120. Res. 120-17: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO CAMP CHILDREN TO ATTEND THE 2017 CAMP AGAPE Transfers $2,500 from the Clerk-Council Services Contingency Relief account (Council District 4); and credits to the Office of the Prosecuting Attorney, Other Current Expenses account. Reference: Comm. 170 Intr. by: Page 72 -9 April 5, 2017 Motion to Approve: Ms. moved to adopt Resolution 120-17. Seconded by Ms. Lee Loy. CHR. POINDEXTER: . MS. : We heard from Prosecutor Roth on this this morning and I just ask for your support. CHR. POINDEXTER: Any other questions? Seeing or hearing none, all those in Vote on Res. 120-17: The motion to adopt Res. 120-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Mr. Clerk, Resolution 121. Res. 121-17: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO CAMP 2017 CAMP AGAPE BIG ISLAND Transfers $2,000 from the Clerk-Council Services Contingency Relief account (Council District 8); and credits to the Office of the Prosecuting Attorney, Other Current Expenses account. Reference: Comm. 171 Intr. by: Ms. Eoff Motion to Approve: Ms. Eoff moved to adopt Resolution 121-17. Seconded by Ms. David. CHR. POINDEXTER: Council Member Eoff. MS. EOFF: . And I just wanted to say thank you, to Prosecutor Roth, for being here, twice today to be Thank you. Page 73 -9 April 5, 2017 CHR. POINDEXTER: Any other discussion or questions? Seeing or hearing Vote on Res. 121-17: The motion to adopt Res. 121-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Mr. Clerk, Resolution 122 Res. 122-17: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO ACQUIRE A PASSENGER VAN FOR THE DEPARTMENT OF PARKS AND RECREATION, ELDERLY ACTIVITIES DIVISION Transfers $3,051 from the Clerk-Council Services Contingency Relief account (Council District 8); and credits to the Parks and Recreation, Coordinated Services County Other Current Expenses account. Reference: Comm. 172 Intr. by: Ms. Eoff Motion to Approve: Ms. Eoff moved to adopt Resolution 122-17. Seconded by Ms. Lee Loy. CHR. POINDEXTER: Council Member Eoff. think sometimes Corrin and their office are a little shy to ask us for help. But I appreciate that we are able to help in this way; providing transportation for the elderly. Page 74 -9 April 5, 2017 CHR. POINDEXTER: Any discussion or questions? All those in favor say Vote on Res. 122-17: The motion to adopt Res. 122-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Resolution 123, Mr. Clerk. Res. 123-17: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO THE T Transfers $1,000 from the Clerk-Council Services Contingency Relief account (Council District 3); and credits to the Liquor Control, Public Programs account. Reference: Comm. 173 Intr. by: Ms. Lee Loy Motion to Approve: Ms. Lee Loy moved to adopt Resolution 123-17. Seconded by Ms. David. CHR. POINDEXTER: Council Member Lee Loy. MS. LEE LOY: Yeah, thank you. I ask that you support this. This is my alma mater. I will not break out into song, but would really appreciate your support. Page 75 -9 April 5, 2017 CHR. POINDEXTER: Any questions or discussion? Okay, all those in favor say Vote on Res. 123-17: The motion to adopt Res. 123-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Kanuha, Lee Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Mr. Clerk, Resolution 124. Res. 124-17: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO PUNA COMMUNITY MEDICAL CENTER TO ASSIST WITH MEDICAL SUPPLIES Transfers $5,000 from the Clerk-Council Services Contingency Relief account (Council District 5); and credits to the Research and County Resource Center account. Reference: Comm. 174 Intr. by: Ms. Ruggles Motion to Approve: Ms. Ruggles moved to adopt Resolution 124-17. Seconded by Ms. Lee Loy. CHR. POINDEXTER: Council Member Ruggles. MS. RUGGLES: Thank you. I just ask for your support, this is a really important program or important non- really need it out there. And really takes a lot of the burden off of the Hilo Medical Center and our roads, so. I ask for your support. Page 76 -9 April 5, 2017 CHR. POINDEXTER: Thank you, any questions or discussion? Okay, all those Vote on Res. 124-17: The motion to adopt Res. 124-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Mr. Clerk, Resolution 125. Res. 125-17: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A BIKE PATROL PROGRAM IN COUNCIL DISTRICT 2 Transfers $3,500 from the Clerk-Council Services Contingency Relief account (Council District 2); and credits to the Police Department, South Hilo-Police Other Current Expenses account. Reference: Comm. 176 Intr. by: Mr. Chung Motion to Approve: Mr. Chung moved to adopt Resolution 125-17. Seconded by Ms. Lee Loy. CHR. POINDEXTER: Council Member Chung. MR. CHUNG: This is just a companion appropriation to what you had done, I think, two weeks ago. And all I ask of the Police Department was that they provide us a report of the areas that they went, so we can go to our constituents and show them how this program is working. Page 77 -9 April 5, 2017 CHR. POINDEXTER: Thank you, any other questions or discussion? Okay, all Vote on Res. 125-17: The motion to adopt Res. 125-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Mr. Clerk, Resolution 126. Res. 126-17: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO THE HALE MUA CULTURAL GROUP TO ASSIST THE ROYAL ORDER OF KAMEHAMEHA HALL Transfers $2,500 from the Clerk-Council Services Contingency Relief account County Resource Center account. Reference: Comm. 177 Intr. by: Ms. Lee Loy Motion to Approve: Ms. Lee Loy moved to adopt Resolution 126-17. Seconded by Mr. Richards. CHR. POINDEXTER: Council Member Lee Loy. MS. LEE LOY: Yeah, thank you. This one is a real specialthis particular Hall is on our national register of historic places and I just really appreciate the Royal Order for stepping up and taking care of our historic site. We heard testimony earlier today about what a Hall that was, where a lot of Government, what we do really excited to support this. I ask that my other Council Members support this. And hopefully they can use this as leverage, so that they can get more funding to repair what a significant historic place this is for us. Thank you. Page 78 -9 April 5, 2017 CHR. POINDEXTER: Thank you, any other questions or discussion? All those Vote on Res. 126-17: The motion to adopt Res. 126-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Mr. Clerk, Resolution 127. Res. 127-17: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A 20 PERCENT COST-MATCH WITH THE STATE FOR THE ACQUISITION OF TWO VANS FOR THE DEPARTMENT OF PARKS AND RECREATION, Transfers $6,000 from the Clerk-Council Services Contingency Relief account (Council District 2); and credits to the Parks and Recreation, Coordinated Services County Other Current Expenses account. Reference: Comm. 178 Intr. by: Mr. Chung Motion to Approve: Mr. Chung moved to adopt Resolution 127-17. Seconded by Ms. Lee Loy. CHR. POINDEXTER: Council Member Chung. MR. CHUNG: It appears Im always two weeks behind all of you guys. So, I think, this is intended to be a compliment to who provided money? You, Sue? Oh, right over there. All of you guys, just augmenting that effort. Thank you. Page 79 -9 April 5, 2017 CHR. POINDEXTER: Any other discussion? Okay, no, all those in favor say Vote on Res. 127-17: The motion to adopt Res. 127-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Kanuha, Lee and Chair Poindexter 8. Noes: None. Absent: Council Member Ruggles 1. Excused: None. CHR. POINDEXTER: Mr. Clerk, Resolution 128. Res. 128-17: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO DARE INTERMEDIATE SCHOOL STUDENTS PARTICIPATING IN THE 2017 DARE DAY CELEBRATION Transfers $1,000 from the Clerk-Council Services Contingency Relief account (Council District 2); and credits to the Liquor Control, Public Programs account. Reference: Comm. 179 Intr. by: Mr. Chung Motion to Approve: Mr. Chung moved to adopt Resolution 128-17. Seconded by Ms. David. CHR. POINDEXTER: Council Member Chung. MR. CHUNG: Self-explanatory, just getting some of our intermediate school students to and from a really good program. So, hope I can get your support, thank you. Page 80 -9 April 5, 2017 CHR. POINDEXTER: A Vote on Res. 128-17: The motion to adopt Res. 128-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Kanuha, Lee and Chair Poindexter 8. Noes: None. Absent: Council Member Ruggles 1. Excused: None. CHR. POINDEXTER: Mr. Clerk, Resolution 129. Res. 129-17: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO ARTS & SCIENCES CENTER TO PURCHASE EQUIPMENTS FOR ITS VIDEO PRODUCTION PROGRAM Transfers $4,500 from the Clerk-Council Services Contingency Relief account (Council District 4); and credits to the Research and Development, Big Island Film Office account. Reference: Comm. 180 Intr. by: M Motion to Approve: moved to adopt Resolution 129-17. Seconded by Ms. David. CHR. POINDEXTER: Council Member . : Thank you. We heard from Gail Clark on this, this morning and how important it is in your community to provide the equipment, so that the high schoolers and students in the area can make video telling their story, telling our story, and they have done some really good work. I hope everybody will support this program for HAAS , and its arts and sciences center. Page 81 -9 April 5, 2017 CHR. POINDEXTER: A Vote on Res. 129-17: The motion to adopt Res. 129-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Kanuha, Lee and Chair Poindexter 8. Noes: None. Absent: Council Member Ruggles 1. Excused: None. CHR. POINDEXTER: Mr. Clerk, Resolution 132. Res. 132-17: ASSOCIATION OF COUNTIES (HSAC) EXECUTIVE COMMITTEE AND NOMINATES A REPRESENTATIVE TO SERVE AS A DIRECTOR ON THE WESTERN INTERSTATE REGION (WIR) BOARD OF DIRECTORS Appoints Dru Mamo Kanuha as Representative and Valerie T. Poindexter as Alternate Representative to the HSAC Executive Committee, and nominates Dru Mamo Kanuha to serve as WIR Director; all terms to begin July 1, 2017. Reference: Comm. 188 Intr. by: Mr. Kanuha Waived: GREDC Motion to Approve: Mr. Kanuha moved to adopt Resolution 132-17. Seconded by Ms. Lee Loy. CHR. POINDEXTER: Council Member Kanuha. MR. KANUHA: Thank you. We did this previously but the term ended at a certain point. So, we have to do this again, based off of the bylaws of HSAC moving forward and hence the movement from Committee to Council because of the timing that HSAC needed this by. I also wanted to say to clarifynot to clarify, but a testifier earlier said something about a pointless nature and that that the State might not pass during the Legislative session. Yes, I can understand that not too many bills that came out of HSAC have passed through the Legislature been any. But being part of HSAC and these associations are good statewide. Page 82 -9 April 5, 2017 build these relationships so that we can all function together as Counties. So, I do believe in the power and the authority of HSAC as a group and that is important to really work together on a lot of these issues that all come up on different County levels. So, I just want to explain that and why I think that HSAC and being part of HSAC is really important. So, I urge my colleagues to support this, experience of course, but I mahalo all of your support and continued support. CHR. POINDEXTER: Any other discussion? Council Member Eoff. MS. EOFF: being our representative County. CHR. POINDEXTER: Council Member Lee Loy. MS. LEE LOY: Yeah, I wanted to say thank you to Council Member Kanuha, also. We all have families and have a lot of commitments and, you know, traveling and collaborating with our counterparts on the other island. Thank you so much for doing that work. Its not easy and we appreciate everything that you do for us and then collectively, sending that same message to our State Legislature. So, thank you for that, Mr. Kanuha. CHR. POINDEXTER: Any other discussion? Council Member Richards. MR. RICHARDS: I will echo. Councilman Kanuha, thanks again because if happen. So, thank you. CHR. POINDEXTER: Council Member David. MS. DAVID: Yes, and I totally agree. I cannot agree more. I think you do us an excellent service and the fact that you have a certain charisma about you in this Page 83 -9 April 5, 2017 CHR. POINDEXTER: I look forward to more to come. So, thank you with your presence at the Legislature, also. So, thank you, Dru. Okay, so a Vote on Res. 132-17: The motion to adopt Res. 132-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Mr. Clerk, Resolution 133. Res. 133-17: (HSAC) FISCAL YEAR 2018 PROPOSED ANNUAL OPERATING BUDGET for Fiscal Year 2018. Reference: Comm. 189 Intr. by: Mr. Kanuha Waived: GREDC Motion to Approve: Mr. Kanuha moved to adopt Resolution 133-17. Seconded by Ms. David. CHR. POINDEXTER: Council Member Kanuha. MR. KANUHA: Association of Counties) and if you go through it, you can see where all the money is going. There are a few changes here and there just moving monies back and forth. We did move a portion of the monies to another portion where it gives us more options to hire a Communications Director to help usthe lobbying effort and to get us involved in the newspapers on the different islands, the tv stations, as you seen, HSAC has been pretty active this past session so we needed that money in that account. But if there are any other questions, again, this got brought to Council because of the timing and because of the need to approve it by a certain time. So, hence the reason not to have it in Committee, but any other questions that you might have on the details of the budget please let me know and I can try to answer them as best as I can. CHR. POINDEXTER: Okay, any questions or discussion? Seeing or hearing none, a Page 84 -9 April 5, 2017 Vote on Res. 133-17: The motion to adopt Res. 133-17 was carried by the (Adopted) following voice vote: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Mr. Clerk, Bills for Ordinances, First Reading, Bill 18. BILLS FOR The Acting Chair directed the Council to proceed to the next order of business, ORDINANCES Bills for Ordinances (First Reading). (FIRST READING): Bill 18: COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO PARKING Amends Schedule 28 (No parking at anytime), Subsection (c), South Hilo, by repealing an existing provision for a portion of Holomua Street. Reference: Comm. 143 Intr. by: Ms. Ruggles (B/R) Approve: PWPRC-2 Motion to Approve: Ms. Ruggles moved to pass Bill 18 on first reading and adopt Public Works and Parks and Recreation Committee Report No. 2. Seconded by Ms. Lee Loy. CHR. POINDEXTER: Council Member Ruggles. MS. RUGGLES: MS. LEE LOY: If I may, Chair? CHR. POINDEXTER: Yes, Council Member Lee Loy. MS. LEE LOY: This is actually in my district so this actually really compliments the businesses that are there. I spoke to the businesses around that area and they are in support of this. CHR. POINDEXTER: Thank you, any questions or discussion? Oaky, all those Page 85 -9 April 5, 2017 Vote on Bill 18: The motion to pass Bill 18 on first reading and adopt (Approved) Public Works and Parks and Recreation Committee Report No. 2 was carried by the following voice vote: Ayes: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Mr. Clerk, Bill 25. Bill 19: COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO PARKING Amends Schedule 29 (Parking prohibited during certain hours on certain streets; tow-away zone), Subsection (c), South Hilo, by repealing existing provisions for portions of Derby Lane and Wilson Street. Reference: Comm. 144 Intr. by: Ms. Ruggles (B/R) Approve: PWPRC-3 Motion to Approve: Ms. Ruggles moved to pass Bill 19 on first reading and adopt Public Works and Parks and Recreation Committee Report No. 3. Seconded by Ms. Lee Loy. CHR. POINDEXTER: Council Member Ruggles. MS. RUGGLES: introducing by request. CHR. POINDEXTER: Okay, any discussion or questions? Oaky, all those in Vote on Bill 19: The motion to pass Bill 19 on first reading and adopt (Approved) Public Works and Parks and Recreation Committee Report No. 3 was carried by the following voice vote: Ayes: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. Page 86 -9 April 5, 2017 CHR. POINDEXTER: Next. Bill 25: AUTHORIZES THE ISSUANCE OF GENERAL OBLIGATION BONDS OF EXCEED $4,105,000 FOR THE PURPOSE OF FUNDING A PORTION OF THE COSTS OF A WATER DEPARTMENT PROJECT REFERRED TO AS THE PAPAIKOU TRANSITE & G. I. (GALVANIZED IRON) PIPELINE REPLACEMENT; FIXES THE FORM, DENOMINATIONS, AND CERTAIN OTHER DETAILS OF SUCH BONDS AND PROVIDES FOR THE SALE THEREOF; AND AUTHORIZES THE TAKING OF OTHER ACTIONS RELATING TO THE ISSUANCE AND SALE OF THE BONDS Authorizes the issuance of up to $4,105,000 in general obligation bonds, as requested by the Department of Water Supply, to replace undersized and aging asbestos cement and galvanized waterlines. Reference: Comm. 185 Intr. by: Ms. David (B/R) Waived: FC Motion to Approve: Ms. David to pass Bill 25 on first reading. Seconded by Mr. Richards. CHR. POINDEXTER: Council Member David. MS. DAVID: Yes. I really want to apologize to Mr. Okamoto, who planned to be here, but I think he had something in the afternoon, so I see our Deputy Director Deanna Sako and is that Kawika? Please come forward in case we have any questions. CHR. POINDEXTER: Does anyone have any questions. MS. DAVID: Yes, I just want them to explain briefly what this is. Thank you so much for your patience. (Note: At this time, Department of Water Supply Deputy Director Kawika Uehara came forward to address the Council.) MR. UEHARA: Good early afternoon, evening, Council Chair Poindexter and Council Members. My name is Kawika Uehara, Im the Deputy at the Department of Water Supply. This is our galvanized iron and asbestos concrete pipeline replacement project, it has been on our CIP list for a little while. We are really looking forward to this waterline replacement project for the community. We are using this mechanism with the USDA (United States Department of Agriculture) funding and thats why were here before the Council today. As far as the financial asa can help with Page 87 -9 April 5, 2017 that. But in general, re going through this USDA process and we are hoping to maximize the amount of grant portion, which would be up to 45 percent of the project cost; seven million dollar total project cost and, thereby, maxing it out with a grant we also need to do a loan but we also need to be able to secure that loan through a GO (General Obligation) bond MS. DAVID: Thank you very much, I yield. CHR. POINDEXTER: Okay, Council Member Richards? MR. RICHARDS: Thanks for being here. Any time we have these big ticket items, I question and Deanna knows that, so. Can you give us the scope when you say replacing it, just a brief synopsis of and how long. MR. UEHARA: This is some existing community, some of the old plantation camps. I forget the exact names of the camps itself, but it replaces about 15,000 lineal feet of existing water lines services about 240 of our existing customers in the area. If you want, I could pass a map out of the project area. MR. RICHARDS: It would be aged water lines under site ened upgrading it to the current standards. The map passed out in the community and in general, the location and area of the project. MR. UEHARA: So, basically these are aged waterlines under sized and we are project. MR. RICHARDS: Are you upsizing the pipe? MR. UEHARA: Yes, in some areas, to current standards. MR. RICHARDS: To current standards and is anything taken into account for possible growth in the future. MR. UEHARA: This project is just strictly replacement. MR. RICHARDS: Alright, and what your time line on it, when do you expect to be completed? MR. UEHARA: If all goes well, we expect to be get it out by the end of this year and the notice to proceed would probably happen in several months after that. I think the construction time frame is about 15 month or 18 months or so. Page 88 -9 April 5, 2017 MR. RICHARDS: Okay on the financial side, Deputy Sako, if understood about half or roughly two million dollars are accounted for by grants? (Note: At this time, Deputy Director Deanna Sako came forward to address the Council MS. SAKO: No, actually i total. Its a seven and a half million dollar project. So, theyre borrowing four point one million and of that, three million four hundred seventy thousand is actually going to be granted. So, thats why we like working with USDA because if we can get the grant portion that helps to maximize the funds for the water supply. MR. RICHARDS: The balance the County would be responsible for is a million and change, is that what I understanding? MS. SAKO: will only do it if they can get general obligation bonds, but Water Supply reimburses us 100 percent. MR. RICHARDS: Thank you. Relinquish Chair: At this time, Chair Poindexter relinquished the Chair to Vice-Chair Eoff. ACTING CHR. EOFF: I just want to let the record show, hair while Ms. Poindexter took a break. So, Ms. Lee Loy? MS. LEE LOY: Thank you. I just want to make a comment. Were going to be facing this issue over the next five to ten years. The age of the infrastructure of our watere really going to begin to feel it. So, I really appreciate the partnership between the Department of Water Supply and us because we to have to get really good at this. This is how were going to have to leverage our money, use the USDA funds and get good at replacing our aging infrastructure. I spent five years on the Water Board and this was the major bone we keep barking over. you know, Kawika, anything you folks can do to help repair the age of our infrastructure and then partnerships are really open to that. So, thank you. ACTING CHR. EOFF: Ms. David, did you have an amendment? MS. DAVID: Yes. Im waiting until all of the questions were done. If all of the Council Members are done asking questions, I would like to propose a simple amendment, amending Bill 25 with the contents of Communication 185.1. This was done at the request ofsorry. Page 89 -9 April 5, 2017 Motion to Amend: Ms. David moved to amend Bill 25 with the contents of Comm. 185.1. Seconded by Mr. Kanuha. ACTING CHR. EOFF: Go ahead, Ms. David. MS. DAVID: Thank you very much. Our office was contacted as I did this legislation by request, that there was an error in the word transit. Transit and GI pipeline replacement should have been ransite. So, it was in discussions with LRB (Legislative Research Branch). I was advised that a communication making note of this amendment would be sufficient as opposed to also amending the bill. So, its a simple amendment, just substituting the correct word, yeah. So, I appreciate your support. ACTING CHR. EOFF: Okay. So then, after we adopt this amendment it will come back to us for second reading in the amended form. MS. SAKO: Yes that is the plan that we would submit to you guys, draft 2 with the correction and then we would still have second reading in two weeks. ACTING CHR. EOFF: Okay, then all in favor ofoh, Mr. Kanuha? MR. KANUHA: Transite, w a transite? MR. UEHARA: That was the industry term for asbestos concrete, from what I understand. origin of transite versus asbestos concrete. MR. KANUHA: Okay, thank you. MR. CHUNG: Well then, I got to ask a question. You know, I promised Keith that I wasnt going to say anything. Not a peep out of me, but asbestos concrete, that doesnt sound too good somehow. I mean, can you kind of explain this a little bit? MR. UEHARA: Yeah, that was the material typically used in the forties and the fifties MR. CHUNG: Sorry I broke my promise, Keith. MR. UEHARA: and thats the need for a replacement of this waterline to todays industry standards. It was a commonly used material in the fifties. MR. CHUNG: Oh, take it out? Okay. MR. UEHARA: Yes, the project is to replace it. Page 90 -9 April 5, 2017 ACTING CHR. EOFF: Okay, are we all clear? Oh, Mr. Richards. MR. RICHARDS: No, I think we got the question answered. ACTING CHR. EOFF: Okay, then all in favor, please say aye. Vote on Motion to The motion to amend Bill 25 with the contents of Comm. 185.1 Amend: was carried by the following voice vote: (Approved) Ayes: Ayes: Council Members Chung, David, Eoff, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. ACTING CHR. EOFF: There are nine ayes on the amendment, now we are back to the bill as amended. Any discussion? Council Member Kanuha? MR. KANUHA: You know what, maybe for a future discussion and I can talk to you guys later on as we were talking about aging infrastructure, I want to know what out there, what is the County pipes look like around the island with this asbestos. You know, people were drinking out of it, yeah? What is this better for? ACTING CHR. EOFF: Drinking water. MR. UEHARA: In actuality, on our island there is very little. It has either been replaced or very few locations across the island. MS: What is the replacement? What material is the replacement? MR. UEHARA: The new material going in is ductile iron. : Ductile iron, okay. MS. LEE LOY: Just real quick. And this is where I think the Councilas we move into our budget, when we know about projects like thisthey are going to dig up the ground. So, if there is an opportunity to repave at the same time that re digging up the ground, you want to get with Public Works and make sure that maybe all the work can be done at the same time. Thats a very excellent question, Mr. Kanuha. What kind of aging infrastructure do we have to deal with, how do we deal with it, but then how can we get the biggest bang for our buck because the road are going to get torn up. That is what this is very fruitful, so thank you. Page 91 -9 April 5, 2017 ACTING CHR. EOFF: a vote on Bill 25, as amended. Vote on Bill 25: The motion to pass Bill 25, as amended to Draft 2, on first (Draft 2) reading was carried by the following voice vote: (Approved) Ayes: Ayes: Council Members Chung, David, Eoff, Richards, Ruggles, and Chair Poindexter 9. Noes: None. Absent: None. Excused: None. ACTING CHR. EOFF: The bill will move to second reading. Thank you and I will turn the Chair back to Chair Poindexter. Relinquish Chair: At this time, Acting Chair Eoff relinquished the Chair to Chair Poindexter. CHR. POINDEXTER: next. Bill 20: AMENDS ORDINANCE NO. 16-72, AS AMENDED, THE OPERATING ENDING JUNE 30, 2017 Increases revenues in the Elderly Recreation Services (ERS) Section Activities account ($40,000); and appropriates the same to the ERS Section Activities account for a total of $150,000. The increase in funds would be used to accommodate the higher than expected enrollment of seniors in the ERS program. Reference: Comm. 164 Intr. by: Ms. David (B/R) First Reading: March 22, 2017 Motion to Approve: Ms. David moved to pass Bill 20 on second and final reading. Seconded by Ms. Ruggles. CHR. POINDEXTER: Council Member David. MS. DAVID: Yes, this is just another bill that was entertained by request and I ask your support. Page 92 -9 April 5, 2017 CHR. POINDEXTER: Any questions Vote on Bill 20: The motion to pass Bill 20 on second and final reading (Approved) was carried by the following voice vote: Ayes: Council Members Chung, David, Eoff, and Chair Poindexter 8. Noes: None. Absent: Council Member Lee Loy 1. Excused: None. CHR. POINDEXTER: Mr. Clerk, next. Bill 21: AMENDS ORDINANCE NO. 16-72, AS AMENDED, THE OPERATING ENDING JUNE 30, 2017 Appropriates revenues in the Federal Grants Walk with Ease Program account ($2,500); and appropriates the same to the Walk with Ease Program account. Funds would be used to train two instructors, and provide participant booklets and activities to encourage participation in the Walk with Ease pilot program. Reference: Comm. 165 Intr. by: Ms. David (B/R) First Reading: March 22, 2017 Motion to Approve: Ms. David moved to pass Bill 21 on second and final reading. Seconded by Ms. Ruggles. CHR. POINDEXTER: Council Member David. MS. DAVID: Yes, I just ask for your support. CHR. POINDEXTER: Any questions? Okay, all those Vote on Bill 21: The motion to pass Bill 21 on second and final reading (Approved) was carried by the following voice vote: Ayes: Council Members Chung, David, Eoff, and Chair Poindexter 8. Noes: None. Absent: Council Member Lee Loy 1. Excused: None. Page 93 -9 April 5, 2017 CHR. POINDEXTER: PC-7 NOMINATION OF WILLIAM DON BOSWELL, JR., TO THE WATER (Comm. 161): BOARD Requires Council Confirmation by: April 16, 2017 (Section 13-4(l), Motion to Approve: Mr. Richards made a motion to confirm Planning Committee Report No. 7. Seconded by Ms. Eoff. CHR. POINDEXTER: Any questions? Okay, all those in favor say aye. Vote on PC-7: The motion to adopt Planning Committee Report No. 7 was (Adopted) carried by the following voice vote: Ayes: Council Members Chung, David, Eoff, and Chair Poindexter 8. Noes: None. Absent: Council Member Lee Loy 1. Excused: None. CHR. POINDEXTER: Okay, next. PC-8 NOMINATION OF JOSEPH B. CLARKSON TO THE WINDWARD (Comm. 162): PLANNING COMMISSION Requires Council Confirmation by: April 16, 2017 (Section 13-4(l), Charter) Motion to Approve: Mr. Richards made a motion to confirm Planning Committee Report No. 8. Seconded by Ms. Eoff. Page 94 -9 April 5, 2017 CHR. POINDEXTER: Any questions? Seeing or hearing none, all those in favor say aye. Vote on PC-8: The motion to adopt Planning Committee Report No. 8 was (Adopted) carried by the following voice vote: Ayes: Council Members Chung, David, Eoff, and Chair Poindexter 8. Noes: None. Absent: Council Member Lee Loy 1. Excused: None. CHR. POINDEXTER: Mr. Clerk, next. AWESC-1 NOMINATION OF BRONSTEN- (Comm. 159): GAME MANAGEMENT ADVISORY COMMISSION Requires Council Confirmation by: April 16, 2017 (Section 13-4(l), Motion to Approve: Mr. Richards made a motion to confirm Agriculture, Water and Energy Sustainability Committee Report No. 1. Seconded by Ms. Eoff. CHR. POINDEXTER: Any questions? No, all those in favor say aye. Vote on AWESC-1: The motion to adopt Agriculture, Water and Energy (Adopted) Sustainability Committee Report No. 1 was carried by the following voice vote: Ayes: Council Members Chung, David, Eoff, and Chair Poindexter 8. Noes: None. Absent: Council Member Lee Loy 1. Excused: None. Page 95 -9 April 5, 2017 CHR. POINDEXTER: Okay, Mr. Clerk, did we cover everything? MR. MAEDA: You have the approval of minutes. CHR. POINDEXTER: Oh, okay. APPROVAL OF The Chair directed the Council to proceed to the next order of business, MINUTES: Approval of Minutes. Vote on Approval of Ms. David moved to approve the Minutes of January 5, 2017. Minutes: Seconded by Ms. Eoff and carried by the following voice vote: (Approved) Ayes: Council Members Chung, David, Eoff, and Chair Poindexter 8. Noes: None. Absent: Council Member Lee Loy 1. Excused: None. REFERRALS FOR The Chair directed the Council to proceed to the next order of business, Referrals EXECUTIVE for Executive Session. SESSION (There were none.) OTHER The Chair directed the Council to proceed to the next order of business, Other BUSINESS: Business. (There was none.) ANNOUNCE-The Chair directed the Council to proceed to the next order of business, MENTS: Announcements. (There was none.) Page 96 Hawaii County Council-9 April 5, 2017 CHR. POINDEXTER: May I have a motion to adjourn? MR. MAEDA: Can we just go through real quick to make sure we got everything? CHR. POINDEXTER: Okay. MR. MAEDA: Okay, we are all good. CHR. POINDEXTER: Motion to adjourn? ADJOURNMENT: There being no other business, at 5:11 p.m., Ms. Ruggles moved to adjourn the meeting. Seconded by Mr. Richards and carried by the following voice vote: Ayes: Council Members Chung, David, Eoff, Kanuha, O'Hara, Richards, Ruggles, and Chair Poindexter— 8. Noes: None. Absent: Council Member Lee Loy— 1. Excused: None. CHR. POINDEXTER: Okay, meeting adjourned. JUL 0 7 2017 Council Approval: A it C I UNTY CLERK SM/slm Page 97