Loading...
HomeMy WebLinkAboutMIN FC 2017/09/06 2016-2018COMMITTEE ON FINANCE 18th Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii September 6, 2017 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 1:35 p.m. in the Council Chambers, Hilo, by Ms. Maile Medeiros David, Chair. ROLL CALL: Present: Ms. Maile Medeiros David, Chair Ms. Karen Eoff, Vice Chair Mr. Aaron S. Y. Chung, Member Mr. Dru Mamo Kanuha, Member Ms. Susan L. K. Lee Loy, Member Ms. Eileen O'Hara, Member (came in later) Ms. Valerie T. Poindexter, Member (came in later) Mr. Herbert M. "Tim" Richards, III, Member Ms. Jennifer Ruggles, Member STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: The following individuals registered to speak and came forward when called by the Chair: Toby Hazel: Res. 260-17 (Comm. 400), comment. Patrick L. Kahawaiola` a: Res. 261-17 (Comm. 401); and Bill 63 (Comm. 402), in opposition. CHR. DAVID: Mr. Kahawaiola`a, hopefully, that if you're going to be able to hang around? MR. KAHAWAIOLA`A: Sure, I definitely will. So you guys can read what I've presented to you (see Comm. 401.1). CHR. DAVID: Thank you. MR. KAHAWAIOLA`A: And we can do—because I truly need to get a better understanding— FC -18 September 6, 2017 CHR. DAVID: Yes. MR. KAHAWAIOLA`A: —before I can scream or holler. Thank you. CHR. DAVID: Thank you. Mahalo. And we will get some answers to your good questions, okay. And I don't believe we have anymore testifiers here, so at this time I am going to close public testimony. Mr. Clerk, could you please take us to Communication 7.12, please? COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 7.12: PRELIMINARY MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED JUNE 30, 2017, FROM THE DEPARTMENT OF FINANCE From Finance Director Collins Tomei, dated August 14, 2017, transmitting the above report pursuant to Hawaii County Charter Section 6-6.3(h). Vote on Comm. 7.12: Ms. O'Hara moved to close file on Comm. 7.12. Seconded Filed by Ms. Poindexter and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: We have nine "ayes." Thank you. Communication 14.18. Comm. 14.18: REPORT OF CHANGE ORDERS AUTHORIZED: JULY 1 - 15, 2017 From Finance Director Collins Tomei, dated August 7, 2017, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. CHR. DAVID: Thank you. Motion, please, to file Communication 14.18? Motion to Close File: Ms. O'Hara moved to close file on Comm. 14.18. Seconded by Mr. Richards. CHR. DAVID: Any discussion, Council Members? MR. KANUHA: Yes. CHR. DAVID: Mr. Kanuha. MR. KANUHA: Deanna? Page 2 FC -18 September 6, 2017 (Note: At this time, Deputy Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: Good afternoon. Deanna Sako, Deputy Director of Finance. MR. KANUHA: Construction Management Services for the Kealakehe Waste Water Treatment Aeration and Sludge Removal, the upgrade, it's asking for—the purpose is for additional time to complete Tasks 1 and 2, the scope of work. With the additional time, there's a change order amount of $318,000. How does that—can you explain, first of all, the original scope of work for Tasks 1 and 2, and why because of the additional time needed, we're going to pay $318,000? MS. SAKO: I don't know. I think I have the wrong report. So just— MR. KANUHA: Am I on the right report? MS. SAKO: Okay, this report—I don't know. Okay, well let me just answer and I'll figure it out later. This is from February, so I'm a little confused. Yes, I'm seeing it, and I think I have to go back and double-check with them. There were a lot of issues with this project. But having also to do with different species of birds and working around their schedule and different things. But let me go find out specifically what this one was for. This is a February report, so I'm a little confused; that's why it didn't match, what I had for July, which was very short. Point of Order: MS. EOFF: Point of order? CHR. DAVID: Ms. Eoff. MS. EOFF: I wonder if—Deanna, because the cover communication says that this should be the report from July 1 to July 15, so maybe that's the wrong attachment. MS. SAKO: Yeah, so I'll have to follow-up on that. I do have the July 1St to 15th report, which is very short, where it's zero dollar change orders. MR. KANUHA: Maybe we've done this already. MS. SAKO: Yeah, I think we have talked about it, but that's why it's also not real fresh in my memory. MR. KANUHA: And you know why I think we've done this before, because I think (inaudible) going through waste water treatment plant also. MS. EOFF: It looked really familiar. Page 3 FC -18 September 6, 2017 MR. KANUHA: Probably talked about that long time ago. CHR. DAVID: Then I think the attachment is the wrong attachment. MS. SAKO: Yeah, I'll go double-check. If we submitted the wrong one, I'll submit the corrected one. CHR. DAVID: But the one that you do have, shows a zero? MS. SAKO: Yeah, there's two change orders with zero dollar amounts. CHR. DAVID: Dollar amounts, okay. MS. SAKO: Yeah, one is just a vendor name change, and the other one is we had to change the vendor. MR. KANUHA: Which one? Which one are we talking about? MS. SAKO: The July 1St to 15th. But if we submitted the wrong one, we'll submit the corrected one. MR. KANUHA: We're going to have to amend this, right? CHR. DAVID: Okay. Deanna, do you—or you want to— MR. KANUHA: Submit something else. MS. SAKO: I don't know if it's a Laserfiche thing or we submitted the wrong one, so I need to go check it out. CHR. DAVID: Oh, okay. MS. SAKO: So if we submitted the wrong one, I'll submit the corrected one. CHR. DAVID: Okay. MS. SAKO: If we submitted the correct one and it's a printing error, I don't know what we'd do. CHR. DAVID: Okay, why don't we just postpone then? MS. SAKO: Yes, that would be great and we'll fix it right next time. CHR. DAVID: Can I have a motion? Page 4 FC -18 September 6, 2017 Motion to Postpone: Mr. Kanuha moved to postpone Comm. 14.18 to September 19, 2017. Seconded by Ms. Eoff. MS. LEE LOY: Chair, if we're correcting that, I was just wondering because that same report has Ron Whitmore as a project manager, and that's for General Plan Community, Viz Scenario. But he's over at R&D (Research and Development) now, so I was just wondering if he continues to project management. MS. SAKO: Back in February, he was still kind of help (inaudible) department, yeah. MS. LEE LOY: Okay. CHR. DAVID: Alright, thank you, Ms. Lee Loy. Mr. Kanuha, you want to say—okay. Mr. Clerk, when is our next meeting? September? MR. MAEDA: September 19. CHR. DAVID: Okay, Communication 14.18 is moved to continue to September 19, in Kona. Alright, all those in favor please say "aye." Vote on Motion to The motion to postpone Comm. 14.18 to September 19, 2017, Postpone: was carried by the following voice vote: (Approved) Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: We have nine "ayes." Thank you. Mr. Clerk, please, Communication 14.19. Comm. 14.19: REPORT OF CHANGE ORDERS AUTHORIZED: JULY 16 - 31, 2017 From Finance Director Collins Tomei, dated August 14, 2017, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Motion to Close File: Ms. O'Hara moved to close file on Comm. 14.19. Seconded by Ms. Poindexter. (Note: At this time, Deputy Finance Director Deanna Sako came forward to address the members of the Committee.) CHR. DAVID: Discussion, Council Members? Ms. O'Hara. Page 5 FC -18 September 6, 2017 MS. O'HARA: Just a clarification. Deanna, I remember when we first came in and started dealing with these change order reports, we talked about identifying a number of option years on a contract and which option we were in. Can you just walk me through? Where, that—I see we have the Supplemental Agreement column, Contract Order or Supplemental Agreement column. MS. SAKO: Right, change order, yeah. MS. O'HARA: Yeah, and it will give you a number. So this is for the first item, and two for the second. MS. SAKO: Right. MS. O'HARA: But does that tell us how many option years exists on that contract? MS. SAKO: In general, if we're on the fourth change order and it's an option year, typically they were on the fourth option year, which would also be the last option year in most cases. MS. O'HARA: Yeah, I just wouldn't know. MS. SAKO: Yeah. MS. O'HARA: Is there some way to tell us if it's two, three, four, or five? MS. SAKO: I don't have it with me. But I think I did ask them to start including that, so I'll follow-up. MS. O'HARA: Okay. That's all, thank you. CHR. DAVID: Thank you, Ms. O'Hara. Anyone else? Mr. Chung. MR. CHUNG: Yeah, Deanna, just as a follow-up, I'm just wondering, are these considered change orders, though? Because these are eye-popping percentage changes, right? So again, it catches our eye. MS. SAKO: Yes. MR. CHUNG: But then when you look at the purpose and then you look at the original contract date, like 2007— MS. SAKO: Right. MR. CHUNG: It's easy to surmise that it's for something else. But it's not your typical construction change order, right? Page 6 FC -18 September 6, 2017 MS. SAKO: Correct, yeah. MR. CHUNG: Thousand percent— MS. SAKO: We're trying to be very transparent, and disclose absolutely everything. MR. CHUNG: It becomes very confusing. MS. SAKO: It does, yes. So if we want to amend the County Code to eliminate some of these, I mean, that's an option probably. MR. CHUNG: So it's all included within what's required in the County Code. MS. SAKO: The County Code. Because all it says is change orders and supplemental agreements or something like that. MR. CHUNG: Okay. Alright, thank you. CHR. DAVID: Thank you, Mr. Chung. Anyone else? Seeing or hearing none, all those in favor of filing Communication 14.19 please say "aye." Vote on Comm. 14.19: The motion to close file on Comm. 14.19 was carried by Filed the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Mr. Clerk, Communication 15.14. Comm. 15.14: REPORT OF FUND TRANSFERS AUTHORIZED: JULY 16 - 31, 2017 From Controller Kay Oshiro, dated August 4, 2017. Page 7 FC -18 Vote on Comm. 15.14: Filed Comm. 114.2: September 6, 2017 Ms. Poindexter moved to close file on Comm. 15.14. Seconded by Ms. O'Hara and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Mr. Clerk, Communication 114.2. Vote on Comm. 114.2: Filed FOURTH QUARTER REALLOCATION REPORT: APRIL - JUNE, 2017 From Human Resources Director Sharon Toriano, dated August 10, 2017. Ms. Poindexter moved to close file on Comm. 114.2. Seconded by Mr. Richards and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Mr. Clerk, Order of Resolutions. Resolution 260-17, please. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 260-17: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR AGREEMENT FOR AN INDEPENDENT AUDITOR(S) Authorizes a five-year contract for an independent auditor(s) to perform the annual audit of the accounts and other evidences of financial transactions of the County and of every County agency and executive agency. Reference: Comm. 400 Intr. by: Ms. David (B/R) CHR. DAVID: Thank you. Please may I have a motion to approve 260-17? Motion to Approve: Ms. O'Hara moved to recommend adoption of Res. 260-17. Seconded by Ms. Ruggles. Page 8 FC -18 September 6, 2017 CHR. DAVID: Discussion. Council Members, I see Ms. Nims is here for questions, if anyone has any. If not, alright. All those in favor of approving Resolution 260-17 please say "aye." Vote on Res. 260-17: The motion to recommend adoption of Res. 260-17 was (Approved) carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Thank you. Mr. Clerk, Resolution 261-17. Res. 261-17: AUTHORIZES THE OFFICE OF THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE DEPARTMENT OF HAWAIIAN HOME LANDS (DHHL), PURSUANT TO HAWAII REVISED STATUTES 46-7, FOR THE COUNTY OF HAWAII TO RECEIVE REIMBURSEMENT FUNDS FOR STREETLIGHT CONVERSION ON PROPERTY HELD BY THE DEPARTMENT OF HAWAIIAN HOME LANDS The agreement is for DHHL to reimburse the County $400,000 for the conversion of streetlights on DHHL lands from low pressure sodium to light emitting diode. Reference: Comm. 401 Intr. by: Ms. David (B/R) CHR. DAVID: Thank you. May I please have a motion to approve Resolution 261-17? Motion to Approve: Ms. O'Hara moved to recommend adoption of Res. 261-17. Seconded by Mr. Kanuha. CHR. DAVID: I believe we have Mr. Thiel here today for questions. Council Members? Ms. Lee Loy. (Note: At this time, Traffic Division Chief Ron Thiel came forward to address the members of the Committee.) MS. LEE LOY: Thank you, Chair. Thank you, Mr. Thiel. Good afternoon. I'm hoping you were in the room when we had Pat Kahawaiola` a ask questions regarding a better understanding of this resolution and the amount the Department of Hawaiian Home Lands is reimbursing the County. Could you share a little bit of background on that? Page 9 FC -18 September 6, 2017 MR. THIEL: I'm Ron Thiel, Chief of the Traffic Division. I was caught unaware of this letter (see Comm. 401.1), but Joe Kamelamela had given it to me outside, and then I was understanding better what Patrick said when he made the presentation to you. Background information, about six years ago I was working with DHHL on some accident issues over by Wa1Mart. I was talking to a group of them, DHHL administrators, and one of them was Linda Chin. After we discussed that issue, she said that she was very appreciative of the County paying for the electricity for the streetlights on DHHL's land. And this is—I knew we were doing it, but I never had a communication with DHHL about this. The State statute says that the County has to maintain the roads for DHHL's property. That's as far as it goes. Currently, two of the counties will be—are paying for the electricity on the streetlights. The other three counties do not. So there was the letter that Mayor Kim had written back in the early 2000s, agreeing that we would pick up the electricity. DHHL, when they developed their lands, they developed the roads then put up the lights, and whatever they're going to do as an infrastructure, and then we agreed to maintain them. So I was asking Linda what is their viewpoint on upgrades, because we were getting ready to start working on upgrading the streetlights. She said they always try to keep up with the latest; and if there's an upgrade necessary on this, that they will be willing to listen. So, that was six years ago. I started working with Jeff Fujimoto not (inaudible), just a few years ago, and I brought the conversation up to him about paying for the upgrades of the streetlights. It was really a volunteer situation. There was never any pressure or anything for them to do it. But we just maintained existing facilities on DHHL's property. We pay for the electricity, and the electrical bill is over a couple hundred dollars, we paid for, since we started paying for it. There are about 700 lights in DHHL's property. A couple of years ago, Jeff Fujimoto said that he would apply for CIP (Capital Improvement Projects) funds to reimburse us, so I told him that it would be about $400,000. So they went to the process to get the appropriation and now is in the process of transferring to us. In the meantime, I had used funds in my current Operating Budget, that's marked "Signal & Streetlight Upgrades." I used those funds to pay for the streetlight conversion. So these funds coming back would come back to the Highway Fund, under this reso, and then the next Bill 63 would transfer that funds back into my Operating Budget, so I can continue upgrading the traffic signals themselves. Does that answer enough or you need some more? Page 10 FC -18 September 6, 2017 MS. LEE LOY: I'm going to ask the follow-up question. So when the Department of Hawaiian Home Lands develops their property, they go ahead and build it to dedicable standards and then they dedicate to the County. Is that accurate? MR. THIEL: That's accurate today, but it wasn't accurate a few years ago. They weren't building it to dedicable standards. MS. LEE LOY: Okay. MR. THIEL: But now they do build— MS. LEE LOY: Now they do. MR. THIEL: —to dedicable standards, yes. MS. LEE LOY: Okay. And then, for funds to change out the lights, if it's not DHHL's property, how do other subdivisions, like Sunrise Ridge, how does—where does that fund to change all the lights come from? Is that fuel tax? Is that real property tax? MR. THIEL: Well, it's coming from my budget. My budget is completely coming from the Highway Fund. MS. LEE LOY: From the Highway Fund? MR. THIEL: Yes. MS. LEE LOY: Okay, so when we put gas, right, the fuel tax goes into the Highway Fund but DHHL is reimbursing you from their budget into the Highway Fund? MR. THIEL: That's a process, collect revenue. MS. LEE LOY: Okay. I'm going to yield at this time. I think Ron, myself, and some representatives from the Department of Hawaiian Home Lands need to circle back on our community and get a clear understanding. So if that's okay with you, Ron, I'll go ahead and yield at this time but we can have a bigger conversation later. Thanks. CHR. DAVID: Thank you. Ms. Poindexter and then Ms. O'Hara. MS. POINDEXTER: Yeah, can you stay up there? Okay, so in my district I know we've tried to work on some streetlights that we couldn't get done. I remember taking you out. But the County said they couldn't because it's on private roads. Are you still—I mean, can I in some of my subdivisions that are Page 11 FC -18 September 6, 2017 private roads, can I work with you to get streetlights? How does that work? We cannot, right, on private roads? MR. THIEL: No, we do not do it on private roads. MS. POINDEXTER: Yeah. Okay, so if it's not a County -owned road, then—but would the County help put in the streetlight and let us reimburse the County? MR. THIEL: For County roads? MS. POINDEXTER: No, for roads that are not dedicated over to the County because they were plantation -owned. MR. THIEL: We don't have any jurisdiction on private roads. MS. POINDEXTER: Okay. So is that the situation with DHHL? MR. THIEL: No, we have jurisdiction in DHHL's land. We're required by, I don't remember which State statute. MS. POINDEXTER: Yeah, why I no understand why they got to be—okay. MR. THIEL: Well, we're required by State statute to maintain the roads. MS. POINDEXTER: Yeah, even if it's not dedicated—it's not up to standard? MR. THIEL: If it's DHHL, it says to maintain the roads. MS. POINDEXTER: No matter dedicable standards, okay. MR. THIEL: It's that issue about dedicable. MS. POINDEXTER: Okay, so I can understand their argument then. Like for me, if it's private roads I understand that we cannot get County funding for that. But if it's—you guys are by law. I understand the confusion, so I'm glad they're—Pat came up and brought this to everybody's attention. Thank you. CHR. DAVID: Thank you, Ms. Poindexter. Ms. O'Hara. MS. O'HARA: Thank you. And, Ron, I just have a clarifying question as well. I had been told, and maybe wrongly, by other folks in DPW (Department of Public Works) that we have a Maintenance Agreement, for say, the roads in Maku`u Homesteads, which is DHHL's land, but then we don't own it. Is it—when you say "dedicable," that's the transfer of the land to the County, as I understand it. Page 12 FC -18 September 6, 2017 MR. THIEL: No, I was worried when she made that comment. MS. O'HARA: Oh, okay. So what is it? Is it a Maintenance Agreement? MR. THIEL: Dedicable standards. MS. O'HARA: Yeah dedicable standards, I understand that. MR. THIEL: Yeah. MS. O'HARA: But do we have a Maintenance Agreement? Because we don't own the property. MR. THIEL: No. DHHL, no, we do not own the property. MS. O'HARA: Right, so it's a Maintenance Agreement? MR. THIEL: Well, I don't know if there's a Maintenance Agreement. MS. O'HARA: Well, it says a Master Memorandum Agreement that was done a long time ago. But, yeah. Yeah. MR. THIEL: I've never seen it. MS. O'HARA: Yeah. MR. THIEL: Alaska's part of the Hawaii statutes. MS. O'HARA: Oh, okay. MR. THIEL: It keeps referring to it. I don't know if that's this one that they're referring to here or not. MS. O'HARA: Okay, I'm just confused because I was told that we the County do not own the streets but we are required to maintain them, maintaining the street lighting and what not. It's just the difference of— MR. THIEL: So it says maintain the roadway. MS. O'HARA: Maintain, okay. MR. THIEL: It makes no reference to streetlight as far as I remember. MS. O'HARA: Oh yeah, right. It does not, yeah. Page 13 FC -18 September 6, 2017 MR. THIEL: But Mayor Kim agreed for us to do the streetlights and pay for electricity. MS. O'HARA: Okay. MR. THIEL: I've seen the letter, just back in early 2000. MS. O'HARA: Okay, thank you. Thank you. CHR. DAVID: Thank you, Ms. O'Hara. Mr. Chung. MR. CHUNG: Yeah. Hi, Ron, and thank you for that jurisdictional background. Maybe if I can call Mr. Kahawaiola` a up to the table again because he had some concerns. It was hard for me to digest everything until you came up. Because from what I can tell, and I could be wrong, but I guess Pat is just asking about the use of the monies for those things that were actually traditionally being paid for by the County. He, as a beneficiary, is questioning. That I think, I don't know, but maybe now, after what Mr. Thiel said, can you kind of go over that thing again, Pat, what your concerns are? (Note: At this time, Patrick L. Kahawaiola` a came forward to address the members of the Committee.) MR. KAHAWAIOLA`A: Again, thank you. I'm Pat Kahawaiola`a. The explanation that Mr. Thiel has given to you—first, I don't know who Mr. Yamamoto is. Linda Chin's been gone for maybe six years. So I believe, if you had this conversation, maybe it should have been done with the present land—I think it's a land manager, is what Linda Chin was, with the Department of Hawaiian Homes. This other person you referred to may have worked in that department. But yet and still, the ultimate decision makers are the Hawaiian Homes commissioners. Not Linda Chin, not the department managers that you have to work with because they have obligations to me as a beneficiary. They don't have an obligation to anyone else but me and those that live on the homestead. To Mr. Chung's—that was the reason why I was asking. If you don't own the roads, it can't be dedicated to the County. For one, it can never be dedicated to the County. The use of the term "dedication" is to convey in fee. It can't be done. However—and it's not State statute that makes it so where the County pays. It is the Hawaiian Home Commission Act. The Act of Congress, in Section 220, says you maintain the roads. It's not a State statute telling you that. It's an Act of Congress, again, section. MR. CHUNG: Pat, sorry to interrupt. Page 14 FC -18 September 6, 2017 MR. KAHAWAIOLA`A: Yeah, yeah. MR. CHUNG: Because I didn't want you to go after Ron. MR. KAHAWAIOLA`A: No, no, I didn't want to. MR. CHUNG: He just coming off a health condition, yeah. MR. THIEL: I got my hat on. MR. KAHAWAIOLA`A: I'm sorry. It's just—then I know what I have to do, whether or not to support or oppose. MR. CHUNG: I just wanted some clarification from you. MR. KAHAWAIOLA`A: Yeah. MR. CHUNG: Because certainly we're looking at $400,000, right, to the County. But I can see your point, as a beneficiary, you're wondering whether that's justified, in as much as we have been historically paying that amount. I'm still—Ron, how did this come up again? I mean why are they paying the $400,000? Did we ask for it? I mean, I want to vote "yes" now. Of course $400,000, right? Maybe, Pat, I think that's something you have to bring up with the department, right? I want to take the money that's why. MR. KAHAWAIOLA`A: Trust me, if it's due to the County— MR. CHUNG: Yeah. MR. KAHAWAIOLA`A: —I want the County to have that money because it's coming out of our trust. MR. CHUNG: Right, right. MR. KAHAWAIOLA`A: Okay, but I'm also paying the tax. I'm also using fuel. The same way you take it so that you can give it to the guy in Sunrise Ridge. Unfortunately, Ms. Poindexter can't get it because it's on a road that may be in question. Private or a road -in -limbo, they have a lot of it out there; that question still hasn't been answered. So, I would want to be sure. But yes, I will definitely have this discussion with the Department of Hawaiian Homes, and to bring that UP. MR. CHUNG: Okay. MR. KAHAWAIOLA`A: Because the confusion for me, is that Mr. Thiel says that the Mayor said—when he was here eight years ago, he didn't do it this round, Page 15 FC -18 September 6, 2017 he did it over eight years ago, well, in fact this was 16 years ago, in that frame, when he did it. He came to our community to tell us the same thing. Because we questioned, "Why did a new subdivision come in," or a new development? The road was built. He's absolutely right, none of it was built to dedicable County standard because it was swales. No sidewalks, curbs. Keaukaha never had sidewalks and curbs in the latest subdivision they just built. So to try to equate that way is really totally wrong, to say it's not built to dedicable standards. It's a road that puts our people, get them to their lot. When I see this, was that there was a discussion already made because it's saying "we going give you back the money," that we had not had that discussion. So I think we've got to do it with Hawaiian Homes. MR. CHUNG: Right. MR. KAHAWAIOLA`A: Who in turn should give us a reasonable explanation. MR. CHUNG: Correct. MR. KAHAWAIOLA`A: Then Mr. Thiel should be able to be reimbursed for that money. Because I never want the department or the beneficiaries to be the ones to say, "Well, hey, just give us everything we want and you suck the cost." That's never been our purpose. I would want to have to make sure, that discussion. But now I know how the discussion—how it evolved, from how, in his discussion, with whomever, at Hawaiian Homes. The Mayor making that decision years ago, because I think he made it when I asked him to turn the lights on, on my street. So, it is—and I thank you for just bringing us back to reality. MR. CHUNG: Okay. Alright, thank you. But you understand where— MR. KAHAWAIOLA`A: Absolutely, I understand. I don't agree, but I understand. MR. CHUNG: Alright, thank you. MR. THIEL: So can I make a couple of clarifications? MR. CHUNG: Yes. MR. THIEL: The person I was talking to, Jeff Fujimoto—and we don't own the streetlights on DHHL land. We don't own the road. We don't own anything. So that was the premise of them paying for the materials for the new lights because we don't own them. That's what this $400,000 is for, to pay for the materials of the streetlights. MR. KAHAWAIOLA`A: Madam Chair? Page 16 FC -18 September 6, 2017 CHR. DAVID: Yes, Mr. Kahawaiola`a? MR. KAHAWAIOLA`A: Could I just—I need to respond to that, of what the County owns or does not own. The streetlights are put in based on the County saying how the road is being built. They need to bring the electric in. In electric, by bringing the powerlines in. There's lines. They put streetlights on it. The Mayor said go ahead and—I may have a philosophical difference with Mr. Thiel in what we own or don't own or what you own and don't own. Point being, we are still having the—and was told by the Mayor that this is how it's going to be done. I can say to you clearly, if as what Mr. Thiel represents, the County owns nothing. No road, no street pole, no lines over Hawaiian Home, then your County Charter needs to be amended. Because your County Charter, in Article 1, Section 1 of the County Charter clearly says, clearly says County of Hawaii owns all the lands on this island. It doesn't say "except Hawaiian Homes" or only—and there's no exception. It clearly states, Article 1, Section 1, the geographical boundaries of the County, is they own all the lands except State and Federal. So unless you guys can really make that clarification that I live on State land, but that's for me. I just needed to get that said. I appreciate the fact that you are here listening to me about this portion of it. But it just came to me, when I see some—there's a reimbursement being made. That conversation was had outside of the rule making procedures and the people with the authority in the Department of Hawaiian Homes to make those decisions, and that's the Hawaiian Homes Commission. There's nine of them. Similar to this, they make that decision. That has never been brought. Mr. Fujimoto, the Mayor, Linda Chin, they do not make that decision. The authority lies only with the Hawaiian Homes Commission. So if they'd like to raise then, that's where I'm to take it. They'll be here in October, and I'm going to raise that question to them in October. That if they agree with Mr. Fuj imoto, then "yes" I would want to make sure that the County gets back their $400,000. Because it seems like he wrote a grant. Wish they would write a grant to get Hawaiians on the land, but not pay back the County. Mahalo. CHR. DAVID: Mahalo, Mr. Kahawaiola`a. Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you. I'm going to take this one home. In October, Mr. Thiel, the Hawaii Homes Commission will be coming to the Big Island. I think for clarification purposes, for the rest of my colleagues, is the nexus for me is the Department of Hawaiian Home Lands through their leasing receives monies to help the beneficiaries. So however this grant came about, the funds is coming out of the beneficiary account. But we are reimbursing it into a Page 17 FC -18 September 6, 2017 Highway Fund, which the beneficiaries also pay into when they put gas in their cars. This is actually a bigger conversation for the Department of Hawaiian Home Lands, and we'll go ahead address that there. But if the agreement was made that the department was going to reimburse the County, I'm going to follow that and reimburse Mr. Thiel. They did the work. Right, Uncle Pat, they did the work? MR. KAHAWAIOLA`A: Absolutely. MS. LEE LOY: Absolutely, so they deserve to be reimbursed. But we're going to take this conversation to a different body, and then going forward there might be an opportunity for different legislation. Thank you. CHR. DAVID: So, Ms. Lee Loy—oh, Mr. Kanuha—before I go back to her, you can go ahead, Mr. Kanuha. MR. KANUHA: Okay, so am I getting just for clarification, are you wanting or will want us to not act on these, or you're just going to meet in October and we can proceed with this? MS. LEE LOY: Yeah, actually I'm suggesting we follow through with the agreements that the Department of Hawaiian Home Lands made with the County. CHR. DAVID: I see. MS. LEE LOY: And from what Mr. Thiel expressed, from six years ago, I'm not going to renege on that negotiation. CHR. DAVID: Got it. MS. LEE LOY: But we're going to have— CHR. DAVID: Discussion. MS. LEE LOY: —an opportunity in October on how this all transpired. And I appreciate everyone's time right now. But, thank you. CHR. DAVID: Okay. Okay, thank you. Mr. Kanuha. MR. KANUHA: Yeah, I agree. I'm going to support this resolution. It's basically authorizing the Mayor to enter into an agreement. How that happens with the Mayor and the department, they're going to have to work that out. But in terms of if an agreement isn't reached between the County and the department with the reimbursement, the streetlights are still staying in, right? Page 18 FC -18 Vote on Res. 261-17: (Approved) BILLS FOR ORDINANCES: September 6, 2017 MR. KAHAWAIOLA`A: You can turn it off. MR. KANUHA: What would happen if the agreement isn't reached? MR. THIEL: Well, to be perfectly honest with you, we are receiving the benefit right now because we're saving energy cost, to a tune of, I don't know, three or $4,000 a month, so we would not be changing anything. We're also benefiting from the reduced maintenance cost, which is another healthy amount. So, we're benefiting from it as is. We'll see what happens. MR. KANUHA: And this is to enforce the commitment made by County and DHHL years ago, I guess? MR. THIEL: Yes. MR. KANUHA: Okay. CHR. DAVID: Thank you, Mr. Kanuha. Anyone else? He's pondering. Press your light, Mr. Chung. No? Okay. Alright, I think—anyone else? No? Alright, Council Members, all those in favor of approving Resolution 261-17 please say "aye." The motion to recommend adoption of Res. 261-17 was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: We have nine "ayes." Thank you. Mr. Clerk, we're moving to Bills for Ordinances. Bill 63, please. The Chair directed the Committee to proceed to the next order of business, Bills for Ordinances. Page 19 FC -18 September 6, 2017 Bill 63: AMENDS ORDINANCE NO. 17-39, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAI` I FOR THE FISCAL YEAR ENDING JUNE 30 2018 Increases revenues in the State Grants - Street Light/Traffic Signal Maintenance account ($400,000); and appropriates the same to the Traffic Signals & Street Lights account. Funds would be used to reimburse the County $400,000 for the conversion of streetlights on lands owned by the State Department of Hawaiian Home Lands from low pressure sodium to light emitting diode. Reference: Comm. 402 Intr. by: Ms. David (B/R) Vote on Bill 63: Ms. Lee Loy moved to recommend passage of Bill 63 on (Approved) first reading. Seconded by Mr. Richards and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Mr. Clerk, Bill 64, please. Bill 64: AMENDS ORDINANCE NO. 17-409 AS AMENDED, RELATING TO PUBLIC IMPROVEMENTS AND FINANCING THEREOF FOR THE FISCAL YEAR JULY 1, 2017, TO JUNE 30, 2018 Adds the Fire Department Haihai Fire Station (Kawailani Station Replacement) project for $154,000 to the Capital Budget. Funds for this project shall be provided from the General Obligation Bonds, Capital Projects Fund - Fund Balance and/or Other Sources. Funds would be used to complete the construction of the Haihai Fire Station. Reference: Comm. 403 Intr. by: Ms. David (B/R) Page 20 FC -18 September 6, 2017 Vote on Bill 64: Ms. Lee Loy moved to recommend passage of Bill 64 on (Approved) first reading. Seconded by Ms. Poindexter and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Motion to adjourn? ADJOURN- There being no further business, at 2:25 p.m., Ms. Lee Loy moved to adjourn MENT: the meeting. Seconded by Mr. Richards and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles, and Chair David - 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Thank you, Council Members. We are adjourned. We have nine "ayes." Approved: Ms. Maile Medeiros David, Chair Finance Committee MD/na (Date) Page 21