HomeMy WebLinkAboutMIN COUNCIL 2018-06-19 2016-2018 Hawaii County Council
42nd Session
West Hawaii Civic Center
74-5044 Ane Keohokalole Highway, Building A
Kailua-Kona, Hawaii
June 19, 2018
INVOCATION: Pastor Jason Meechan of Kona Faith Center gave the morning's invocation.
CALL TO The regular meeting of the Hawaii County Council was called to order at
ORDER: 9:11 a.m., in the Council Chambers, Kailua-Kona, by Ms. Karen Eoff,
Acting Chair.
ROLL CALL:
Present: Ms. Valerie T. Poindexter, Chair
Ms. Karen Eoff, Vice Chair
Mr. Aaron S. Y. Chung, Member (via videoconference from Hilo)
Ms. Maile Medeiros David, Member
Mr. Dru Mamo Kanuha, Member
Ms. Susan L. K. Lee Loy, Member (via videoconference from Hilo)
Ms. Eileen O'Hara, Member (came in later; via videoconference from Hilo)
Mr. Herbert M. "Tim" Richards, III, Member
Ms. Jennifer Ruggles, Member (via videoconference from Hilo)
PLEDGE OF The Acting Chair directed the Council to the next order of business, Pledge of
ALLEGIANCE: allegiance.
(At this time, Ms. Poindexter led the Council in the Pledge
of Allegiance.)
PETITIONS, The Acting chair directed the Council to proceed to the next order of business,
MEMORIALS, Petitions, Memorials, Certificates of Merit, and Expressions of Condolence.
CERTIFICATES OF
MERIT, AND (There were none.)
EXPRESSIONS OF
CONDOLENCE:
STATEMENTS The Acting 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.
Hawaii County Council-42 June 19,2018
Abolghassem Abraham Sadegh: Res. 625-18 (Comm. 956), comment.
Russell Ruderman: Res. 628-18 (Comm. 962);
Bill 157 (Comm. 947);
Bill 158 (Comm. 949); and
Bill 159, Draft 2 (Comm. 958.4), comment.
Joy San Buenaventura: Bill 159, Draft 2 (Comm. 958.4), comment.
Lisa Miura: Bill 159, Draft 2 (Comm. 958.4), in support.
Cheryl Soon: Bill 159, Draft 2 (Comm. 958.4), comment.
(representing
SSFM International)
Emile Naeole: Res. 624-18 (Comm. 955);
Res. 626-18 (Comm. 957);
Res. 628-18 (Comm. 962); and
Bill 159, Draft 2, (Comm. 958.4), in support.
Amadeo Markof£ Res. 628-18 (Comm. 962), in support.
Michael Last: Bill 159, Draft 2, (Comm. 958.4), in support.
Jim Cain: Bill 159, Draft 2, (Comm. 958.4) comment.
Margaret Wille: Res. 628-18 (Comm. 962), in support.
Bill 159, Draft 2, (Comm. 958.4) in support.
Leila Kealoha: Res. 628-18 (Comm. 962), in support.
April Lloyd: Res. 624-18 (Comm. 955);
Res. 626-18 (Comm. 957); and
Res. 628-18 (Comm. 962); in support.
ACTING CHR. EOFF: Thank you very much. Have we covered all the testifiers
this morning, or is there anyone else in any of the outer sites that wishes to speak?
Okay, I don't hear of any, so, I'm going to go ahead and close Public Testimony.
Council Members, I'd like to take a recess so they can reboot the videoconference
screens for us and when we get back, I'll try and discuss how we're going to
proceed with the day because I've been asked to take Bill 159 out of order as well
as Resolution 628. And I believe there are people waiting here for those items but
I'm not sure if other people have any other requests for taking something out of
order. So, when we get back, let's discuss that and then we'll move forward.
Thank you. We're in recess.
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Hawaii County Council-42 June 19,2018
Recess: At 10:04 a.m., the Acting Chair called for a recess.
Reconvene: The meeting reconvened at 10:21 a.m.
ACTING CHR. EOFF: We about ready, Council Members? Okay, I'd like to
call the meeting out of recess. Council Members, it looks like the administration
is ready to present Bill 159. If there are no objections here in Kona or in Hilo,
I'm going to go ahead and take Bill 159, Draft 2 out of order. Is that all right with
everybody? Okay, Mr. Clerk, please read Bill 159, Draft 2.
Change Order As directed by the Acting Chair and with no objection from the Council
of Business: Members, the following item was taken out of order:
Bill 159 AMENDS CHAPTER 2 OF THE HAWAII COUNTY CODE 1983 (2016
(Draft 2): EDITION, AS AMENDED) BY ADDING A NEW ARTICLE RELATING TO
TRANSPORTATION SURCHARGE AND CREATING THE GENERAL
EXCISE TAX FUND
Establishes a one-quarter(.25)percent general excise and use tax surcharge to
fund operating or capital costs of public transportation systems within Hawaii
County, to be levied beginning January 1, 2019, with a repeal date of
December 31, 2020, unless otherwise extended by ordinance, provided that such
General Excise and Use Tax surcharge shall not extend beyond December 31,
2030.
Reference: Comm. 958.4
Intr. by: Ms. David (B/R)
First Reading: June 6, 2018
Motion to Approve: Ms. David moved to approve Bill 159, Draft 2, on second
and final reading. Seconded by Ms. Poindexter.
ACTING CHR. EOFF: Council Members, we have Managing Director
Mr. Wil Okabe, and we have the Finance Director Ms. Deanna Sako here in
Kona, and they do have a presentation. Hopefully, everybody has a copy of
Communication 958.5. I think they're ready to go ahead with their presentation.
Mr. Okabe would like to speak first, but go ahead and introduce yourselves and
you can proceed.
(Note: At this time, Managing Director Wil Okabe and Finance Director
Deanna Sako came forward to address the members of the Council.)
MR. OKABE: I'm Wil Okabe, I'm the Managing Director for the County of
Hawai'i. Good morning, Madam Chair Eoff and members of the Council. As you
all know, the Mayor is in the hospital right at this moment recovering from
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Hawaii County Council-42 June 19,2018
another minor heart attack. We're going to see what his disposition is today as far
as the future in regard to tomorrow and the weeks ahead.
I come before you in regards to Bill 159. First of all, before I go into that, I would
like to make some clarifications. First of all, I appreciate Senator Ruderman's
statement today before the Council, in regard to the GET (General Excise Tax).
I'd like to make one comment in regard to Representative San Buenaventura's
comments. It was the Mayor's Office that was asked to look at trying to extend
the GET in consideration to make it more optional, becausebasically,just to
address the concerns about transportation, and mass transit, and roads. So, it was
the Mayor's Office that made that request.
Prior to that, it was the leadership that reached out to Harry Kim, our Mayor, in
regards to looking at how they could look at trying to introduce a bill to increase
the TAT (Transient Accommodations Tax). If you remember back then, there
was a discussion about the TAT and the TAT, basically, the majority of the
money going to pay for the rail in Honolulu. Remember that discussion? So, at
that particular point, after that decision was made, Harry Kim was called to the
house leadership and was discussing the concerns about how we can look at
increasing the TAT. At that point, we were informed that they could introduce a
bill that could address $30 to $40 million.
So, it's because of the TAT and what the Legislature did is the reason why we're
here today. Let's make that clarification. That is the reason why we're here
today, because the Transit Accommodations Tax taxed people in the hotel
industry, which the law was implemented to give assistance to the neighbor island
counties, all the counties with the TAT. If we had that money, we would not have
to look at raising property taxes because as you all know, the counties only have
three taxes that we rely on. Number one is property tax, number two, fuel tax,
and number three, weight tax. Those are the only three revenue sources. 75
percent of the real property tax goes into the County. 75 percent. 63 percent of
that goes to wages and salaries.
You know, when we came into this administration a year and a half ago, we were
already in a deficit. So, we talk about people are asking us to trust, and
accountability. What is the administration going to do with this money? Have we
not addressed all of the concerns when we entered in this administration this past
year and a half? Coming to this administration with a deficit, we tried to address
all of those concerns. I feel that we are fiscally responsible,just like you. It's
about trust. It's about what we have done in this last year and a half.
We have employees in this County that are continuing to work with this
catastrophe in Puna for the last two months. Our Mayor, who has suffered three
heart attacks in the last two months continues to work on a daily basis when he's
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Hawaii County Council-42 June 19,2018
feeling better, and unfortunately, he's in the hospital today. I cannot express to
you more about commitment and about thinking about the people of this island
than our Mayor.
So, when you talk about trust, accountability, you need to specify exactly what
this administration has done to have that question. This is not a game. This is a
situation that we're asking for leadership in this County. It is true that we have
reached out to every form of government, whether it's the State, the Federal,
National Guard, all agencies to look at the opportunity to look at this situation in
Puna. But, it is when there's a situation like this that it's happening on this island,
it is time that government increase services, especially for those that need it the
most. There is a need in this community. I'm talking about the Big Island, the
need is in Puna. But, if it happens in Kona, if there is an earthquake or some
catastrophe, we'd expect the same opportunities for the people in Kona. We are
one island and one team. We need everyone to pull together, every single one of
us to pull together.
Let us talk about the comments in regards to the poor of the poor. Who pays for
the services of the poor and the poor? It is the taxpayers. It's either the County
government, the State government or the Federal government that gives the
opportunity for the poor of the poor to be able to sustain conditions to live in a
comfortable setting. We provide vouchers for housing, the County does, HUD
(Housing and Urban Development), the Federal government. The poor of the
poor also has to understand about sacrifice as well. We are not in this situation
alone and we need to address that. But it's because of the poor of the poor, are we
not, in the county level, providing three meals a day for the homeless?
We're up to close to 600 homeless people now on this island because of this
situation. Think about that. Two or three months ago, this particular budget was
not a situation that we're facing today. We're talking about 5,914 acres destroyed
by lava. 533 homes destroyed. We are not at the same place. We're facing a
$5 million to $6 million deficit in the budget. When we took this role as far as
a year and a half ago in this administration, we were faced with all contracts being
negotiated in this year, therefore, raising the deficit as well.
In Kea`au High School, they will be having this program called Tropic Care.
Tropic Care also addresses the poor of the poor where the communities and
doctors, through the National Guard, through the Army, and through the Reserves
will be able to send down doctors to be able to address the poor of the poor,
giving them medical, dental, and vision care. Are we not addressing those needs
for the poor of the poor? When I hear this discussion about the poor of the poor,
we are doing that. That is what government does. We look after the people who
are disadvantaged.
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Hawaii County Council-42 June 19,2018
Now, in this role as Managing Director, let me just say that we're not going to be
able to satisfy every single person in this County or in this State. In just the
testimony alone yesterday, there were more people that testified here before the
Council that were pro the GET. I have not gotten hundreds and hundreds of
e-mails in regards to the GET. You, as elected officials, in regards to the Council,
are responsible in the sense of making your best judgment for the whole County,
thinking about the needs of the County. You represent each and every one of
your districts, you get elected in one of your districts, but it's the County that you
said—it's the Council that makes the decision. It is important that we look for
that leadership today as you go through this consideration in the GET.
I'm very concerned, not only because of the Mayor's condition, but I'm
concerned of the message that we're sending. We've gotten so much help from
all over the country and even the world in donating funds, reaching out to give
donations to this effort. And we only ask that the Council understand this and try
to give us an opportunity to make this a better place to live. And, I think that with
Deanna's presentation, it will give us an opportunity to look at this budget.
Nobody likes to raise taxes, not one person wants to raise taxes. It affects all of
us. We all pay taxes in this room.
I think Deanna will make you, in this presentation, show you and we do not want
to make cuts as well to provide services to the community, but we will work with
whatever budget that is presented to this administration, which we have done for
the past year and six months. We will be accountable and you will be able to ask
us any questions in regards to the funds of how we're spending the money. I
really believe that every single Director and Deputy Director in this County is
doing a tremendous job for the people of this community and this County. We're
fiscally responsible and I have the utmost confidence in what they're doing in
their leadership roles. When we're asked to cut, we have cut. We were asked to
cut again, we've cut again. Now, it comes down to just basically revenue.
The property taxes that were lost in these three communities alone puts us in a
different situation. It's affecting this economy. It's affecting the tourism
industry. It's affecting jobs in this community. Let us look at the whole island as
you vote today. It takes commitment to the people that are in need, and I only ask
that you strongly consider Bill 159. Thank you.
ACTING CHR. EOFF: Okay, thank you, Mr. Okabe. Ms. Sako.
MS. SAKO: Good morning, Deanna Sako, Director of Finance. We do have a
presentation, which I believe you have in front of you. So, you definitely have
two options today, one is to pass the bill and one is if it were to fail. We just
wanted to give kind of what would happen. If it does pass, we would come back
in to amend the budget. The bill establishes the General Excise Tax Fund, so, we
would come in with that budget as well. But we would move mass transit, the
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operations that are currently in the General Fund and we would put them in the
General Excise Tax Fund. We would adjust General Fund revenue to reflect the
decline in real property tax revenue, and then we'd be balanced because that
amount is $4.9million, as you'll see on a later slide. If the bill does fail, we'll
have to adjust General Fund revenues to reflect the decline in real property tax of
roughly $5 million and adjust General Fund expenditures to reflect the decline in
real property tax revenue.
So, if the bill fails, there's definitely going to be a budget impact. We're going to
have to find $5 million in cuts, which is the same thing we've talked about two
weeks ago. Non-profit grants would be reduced to $1 million, as required by
County Code. There would be no County Contingency Funds. We would unfund
vacant positions, probably mostly those that have been vacant for over a year.
Possibly no car allowance for elected and appointed staff We would suspend
mandated programs and services, parks and recreation, festivals, programs, fee
waivers. A lot of these things are not mandated by County Code or Charter.
In Planning, we would reduce funding for the CDP (Community Development
Plan), like clerical support, maybe they wouldn't be able to meet as often. We
would look at the funding for Banyan Drive Redevelopment, boards and
committees, and then R&D (Research and Development), energy, immigration,
business development programs. A lot of those are not required or mandated by
Code or Charter. Then the budget impact continues. Reducing non-mandated
programs or services like that would possibly close pools and gyms certain days
each week, deferring repairs and maintenance again, public works, reducing
albizia and unsafe flora, solid waste, recycling programs would be reduced,
reducing training opportunities, deferring equipment purchases, and possibly
closing rural offices. We would come back in with a budget amendment so we
could talk about it. But again, these are the things that are not mandated by
Charter or Code.
If the bill passes, there would be no additional reduction in programs and services.
Mass transit would have the funding it needs to make its improvements and to
implement the Master Plan. Road projects can be addressed, and we're talking
about the larger road projects that need to be rebuilt or improved and we'd have
an additional source of revenue. We'd finally be able to diversify our revenues.
If it passes, this is a proposed budget amendment similar to what we gave you
when we first took up the bill, whatever the number was, 102, maybe. But, we
would reduce General Fund, real property tax revenue by $4.9 million and we
would move, basically, all of the mass transit expenses in the General Fund to that
General Excise Tax Fund. So, that's the first $4.9 million.
Our estimate of$10 million for general excise tax, we believe the first half year
will be $12.5 million, but when the State starts charging it on January first, the
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collections would come in January, the businesses would remit them to the State
in February, and it usually takes the State yet even longer to get them to us. So,
we wanted to be conservative on the number.
In addition to Mass Transit's operations from General Fund, we would look at
implementing parts of the Mass Transit's Master Plan and again, this is back in
February or March when we talked about the previous bill. Since then, the Mass
Transit Master Plan has gone out to public hearing and there's been discussion.
So, we're in agreement with SSFM, some of what she spoke, what Cheryl spoke
about earlier today as well. But we do need more buses and equipment. They do
need to expand their route to provide more services. They need to make capital
improvements. Definitely, they need to make technology improvements, people
are looking forward to having an app knowing where the bus is and when it will
be coming and then adding routes as well. And then in addition, we believe that it
would give us enough funding to be able the design Ane Keohokalole phase 3
from Hina Lani to Kaiminani and that would be the $10 million where it would be
going to. And again, this would be in a separate fund, the General Excise Tax
Fund for accountability.
The Mayor has called me a couple times from the hospital to be sure that we make
a couple points. One, he firmly believes this is not the time for government to be
cutting services when people are most in need. It's the time for government to
step up and provide additional services. People are going to need additional
services in Puna and around the island. Tourism is down. People are being laid
off or hours are being reduced, so, we do want to be able to provide help to those
people as well. In addition, we just need the dollars to be able to respond to Puna
and no one foresaw the $5 million reduction in real property tax is coming, but it
is something we have to deal with now. So, we humbly ask for your support.
We really do believe that government needs to maintain stability in the
community rather than decreasing right now during times of crisis. I think that
was it. You had several communications when we talked about the budget. One
of them is 755.26, which is what the $7 million looks like because at one point,
we were looking for $7 million shortfall and now we believe it's the $5 million.
This is not say that any of these departments or divisions would be entirely cut
from the budget, it was more to show you that many of our departments and
divisions, if you take the whole department, it's less than $5 million. We don't
have a lot of large departments to cut. The entire Clerk and Council Services
budget is only $3.9 million. So, when we say we have to cut the budget, we'd
have to go back in—we really believe we'd have to meet with each and every
department, yet again. so that they can remind us of their request and their needs,
because to cut $5 million is not going to be easy. The ones we gave you before
were examples and information and we would put together a comprehensive plan,
and we'd have to come back, whether this passes or not, we would come back to
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Hawaii County Council-42 June 19,2018
Council with a budget amendment. That's it. We'll be happy to answer any
questions.
ACTING CHR. EOFF: Mahalo for your presentation. I'm going to open it up to
the Council Members now for discussion. Ms. Poindexter.
MS. POINDEXTER: I have a question. Thank you, Council Chair. Deanna, you
said total expenditure reduction in Mass Transit from the General Fund is
$4.9 million, right?
MS. SAKO: Yes.
MS. POINDEXTER: I'm trying to figure out what extra we have in the General
Fund to improve other services that we talked about in previous discussions that
would help with the departments. Whether it be helping the Planning Department
to figure out a system where we could process the building permits quicker, or
helping with Parks and Recreation with more maintenance, more services to the
people that are kind of cut short right now.
MS. SAKO: I think I hear what you're saying.
MS. POINDEXTER: It goes for—GET is for Mass Transit and for roads,
correct?
MS. SAKO: Correct.
MS. POINDEXTER: But I don't see—what will we save in the DPW
(Department of Public Works) roads that is going to shift, because you subtract
what Mass Transit is, then you kind of make-up for the shortfall, correct?
MS. SAKO: Right. So, we are looking to cover the $5 million shortfall in the
General Fund. But in addition, that was not--originally, we were talking about
the GET. We didn't know we were going to have the $5 million shortfall in real
property tax revenue. So, at one point, yes, we were going to use that extra
money if we shifted Mass Transit to improve the different departments and their
budgets. Now all it does is help us balance. When we talk about DPW roads,
that's already in the Highway Fund, and fuel tax, vehicle weight tax, all of the
revenue that they get is also mandated for transportation and roads.
MS. POINDEXTER: Right, but the GET, the amount of money that we're going
to be getting, say the quarter percent passes, we're going to have a lot of
additional money, right?
MS. SAKO: So, in the first year, it's expected to be $10 million. In the
subsequent year, we would hope it would be $25 million. Once we start
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collecting it and we get a whole 12 months of revenue, we would hope a full year
would be $25 million. So, this is the example for the first year and then in the
second year, we do need to go back to the Legislature and ask them to do the
60/40 again because right now, the GET, the way it's worded in HRS, is that we
can only use it on transportation, including roads and all that.
MS. POINDEXTER: Including roads. So, why would you take that whole
amount towards just transportation? Why aren't we spreading it with roads so
that we help to improve—see, here's the problem I'm getting. The public is real
leery about paying more and getting less, or the status quo of services that they
feel they're not receiving or the quality thereof, okay? So, how can we use some
of this to improve some of the services? So I'm saying, why does it all have to go
to Mass Transit and why can't we adjust some of the road stuff, put it back—the
General Fund to be used by other departments and shove some in that road's
budget?
MS. SAKO: Okay, so right now, there's no roads money in the General Fund.
That's one of the issues that we may have misinformation on, but there's no roads
money budgeted in the General Fund. But, we do have one transportation of road
project at the bottom, and sorry, it didn't get the $1.5 million didn't get in the
right column, but we really have been trying to find money to design Hina Lani to
Kaiminani. So, that's kind of our goal and that's one of the projects that we want
to get going. In addition, in the past, DPW has spoken about how it took three
years of STIP (State Transportation Improvement Plan) money to do one road
project and now they have to compete with the State projects. So, this will allow
us to do a lot more of the paving on our own on those bigger projects that we
frequently have to hire out.
MS. POINDEXTER: Okay, I'm trying to wrap my head around all of that,
because I really want to free up some money so we can address some of the
problems in departments that the people have been complaining about for years.
So, I'm having a hard time deciding whether I'm going to vote for this or not
because people want something in return. I know we keep saying the Mass
Transit, but people are, because of the past, that recent audit, they have lost a lot
of trust.
MS. SAKO: So, when we talked about it before, and in all honesty, we were
going to shift transit to GET and that was the money we would free up for the
different departments. So, if property tax values go back up in the future, that
additional funding would be there. But, we've talked about future cost as well.
No one predicted the $5 million shortfall in revenue which is right now what we'd
basically be offsetting to be able to balance the budget.
MS. POINDEXTER: Here's another thought too. Can you put some of that
money into that road fund, release some of that, and come back to the Council to
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address the budget? Because you can do a supplemental to kind of make an
adjustment. Is that possible?
MS. SAKO: Right now, all the money for the roads is in the Highway Fund. The
fuel tax, vehicle weight tax, all of those also have to be used for roads and
transportation. So, I'm having trouble coming up with a way to free up additional
General Fund dollars based on the GE Tax. I mean, that's just until the
Legislature hopefully amends it back to the 60/40, which it was at one point, then
that would free up a lot more money. But right now, the way it is, having to be
used for transportationI'm not going to sit here and make-up things either. I
want to be honest with you guys. So unfortunately, this is the way it is based on
how the law is written right now.
MS. POINDEXTER: Okay, so bottom line is, should this go through, then we
need to start lobbying our Legislature.
MS. SAKO: Yes.
MS. POINDEXTER: Thank you, I'll yield at this time. I'm not saying I'm
supporting it at this time. I'd like to hear from my fellow Council Members.
Thanks.
ACTING CHR. EOFF: Thank you. Hilo, anybody wish to comment at this time?
Just raise your hand or speak up. Okay, let me check here in Kona. Council
Members, comments? Questions? Okay, Mr. Richards.
MR. RICHARDS: Thank you, Chair. Deanna, I appreciate you coming before us
and we've had this conversation back and forth. One of my big concerns is the
balancing of the budget. If we look at section 10-5, we have to have that by the
end of the month. In section 10-9, it references if there's a shortfall, the Mayor
shall come forward in a very timely manner and you did, so I commend the
administration for doing that. The problem is we still haven't solved the problem
yet. You made a comment, Deanna. You said that if the real property values go
back up, am I understanding that the real property values have dropped or is it just
the values within the inundation zone?
MS. SAKO: It's primarily the values in that inundation zone. I mean obviously,
the lava's not going to go away and those properties will have a long-term loss.
But in addition, it really depends on what the economy does. I'm just saying I
don't know how quickly we'll recover from this. You hear of people getting laid
off, hours reduced, hotels having cancellations. I also don't see the lava stopping.
Fissure eight is very active. I mean it's an eight-mile river of lava to the ocean.
So, I can't predict the future. I can't predict the economy, but the area of Puna
will not go back up quickly. The areas that were not inundated or not cutoff,
access wasn't cutoff, some of those might recover. I'm sorry, I should have
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brought that map with the four zones on it again today, but some of those have
just a small reduction. Some of those will come back up. We hope they won't
continue to be a $5 million reduction, but, we can't predict the economy for the
future. So, for fiscal year 2019, we know we are at a $5 to $6 million loss.
Beyond that, we don't know and we won't be able know until we see what the
property values, and the sales are, and what's really happening.
MR. OKABE: But, Dr. Richards, we have to know that—I've been getting calls
from realtors that because of the messaging nationwide in regard to this situation
with the volcano and the lava, people are not investing or trying to come to
Hawai'i because they don't understand that it's only in the Puna area, two
percent. So, even on this side of the island, they're getting out of their escrow
agreements and things. So, it does affect the whole community or the whole
island. So, the value of property taxes is going to be affected.
MR. RICHARDS: I think that's a fair statement, Mr. Okabe. I think that we
don't yet know what the ripple effect is going to be. I'm troubled by—we've
been dancing around this for a couple of months now and I'm troubled by the
budget status right now. I do fully appreciate the willingness to come forward
and putting it on the table. We've got to talk story. From what you're saying, and
maybe Deanna, you're not the one to answer this question, but if we were to
approve a quarter percent, that precludes us from approving a half percent. Is that
a true statement?
MS. SAKO: That is my understanding, that if this bill passes, then the bill that
was tabled, and I want to say it was Bill 102, but I can't remember the number,
would not come back up. It's also my understanding that we could remove the
sunset date prior to March 31, 2019. After that, we might lose that ability to
remove the sunset date. Mr. Kamelamela is here and prepared to speak on any
questions you have with that.
MR. RICHARDS: I want other Council Members to weigh in, so I'm going to
yield at this point. But, I'm going to want to hear some opinions. I yield.
ACTING CHR. EOFF: Thank you, Mr. Richards. Any other Council Members
wishing to speak or ask questions? Mr. Chung.
MR. CHUNG: You know, I've spoken a lot about this matter over the, actually,
the last few years. I think as most of you know, I'm one of three very staunch
supporters of the half percent increase. But, I have to explain my angst right now
with regard to this present proposal, and I haven't decided what I'm going to do
with it. This is going to be the last time I am going to speak today. I don't like
that it's a quarter percent. We need the half percent and we've always needed it.
Quite frankly, I don't see the difference between pulling the trigger on a quarter
percent and a half percent. I mean it may be important to some, but really, from a
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Hawaii County Council-42 June 19,2018
decision maker's standpoint, from my standpoint, it doesn't really make any
difference at all. We need the half percent.
I also object to the sunset clause, which makes this, the vitality of our quarter
percent increase,just one year. I think I stated earlier in another meeting that now
that we have the emergency, I'm less likely, actually, to support this measure. It
seems counter intuitive. But in my mind, this was never intended to be some
stopgap measure, which it has become because of the sunset clause. It's not to
address an emergency. It was to look at our finances prospectively,just like our
legislator said earlier. We owe it to the County, the residents, to provide services.
We are a service organization based on need. We have to provide services, and as
it turns out right now, we have an emergency, so we have more needs.
But, if this means, if passing this measure today means we foreclose the option of
getting a half percent, a part of me says we may as well just wait until January. I
mean, I don't see any, quite frankly, I don't see any reason why that other half
percent bill can't be resurrected, notwithstanding the fact that the motion
designated January as the date it would be resurrected. It's certainly within the
purview of this Council and this Chair to move that thing out. I don't know why
we have to be fooling around with this quarter percent. Now, at this point, let's
just go up or down already.
But, I have some real problems with the current form of the bill. I'll just have to
think about this. Some people might say something is better than nothing, but I
just don't see it. We had two mayors, Mayor Kenoi and Mayor Kim strenuously
supporting this measure. I think they know our situation, or at least knew or
know our situation better than some of us might. But anyway, thank you.
ACTING CHR. EOFF: Thank you, Mr. Chung. Any other comments, Hilo? Or
questions? Kona? Ms. David.
MS. DAVID: Thank you, Chair. Thank you, Managing Director Okabe and
Director Sako for that presentation. I appreciate the comments from fellow
Council Members. I would like, actually, to call Mr. Kamelamela regarding the
procedures we're faced with that Mr. Chung speaks of, because I have a few
questions on how this is going to unfold.
ACTING CHR. EOFF: Mr. Kamelamela.
(Note: At this time, Corporation Counsel Joseph Kamelamela came
forward to address the members of the Council.)
MR. KAMELAMELA: Aloha. Good morning Chair and members of the County
Council, Joseph Kamelamela, Corporation Counsel.
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Hawaii County Council-42 June 19,2018
MS. DAVID: Aloha and good morning. Thank you. Given the concerns that
Mr. Chung has expressed, I was wondering, what would be the process, or is there
a process should Bill 159 succeed today, and prior to the deadline, the sunset date
in this bill, what would be the opportunity, if anything, to extend the sunset date
of this bill? And sorry, the possibility of changing or amending the percentage? I
know there's two questions.
MR. KAMELAMELA: Before I speak, I think this is an important issue that I
discuss it publicly, although it sounds like a legal opinion. So, if nobody objects
from the Council, then I will proceed.
MS. DAVID: I think it's good information. I have no objections and I defer to
my other Council Members.
MR. KAMELAMELA: Hilo?
ACTING CHR. EOFF: I don't hear any objections, so, you can proceed.
MR. KAMELAMELA: Okay. So, we all know that while the County has the
authority to adopt an ordinance to establish a particular surcharge, the State is
very specific as to the requirements for its adoption and the deadlines for the levy.
So ultimately, the State holds the taxing authority and administers this tax for the
County. So, as I see the issues, there were a couple of issues that was posed by
Council Member David. If Bill 159 with a quarter percent passes today, can the
County Council increase the rate to 50 percent before March 31, 2019? That's
how I see the issue. So,just to give a short answer, because there's actually two
questions in there. One is you pass it today, then you won't be able to deal with
Bill 102. I mean that's the impact. You pass this today and then you try to amend
this particular surcharge, you can't do that too.
Okay, so, what we need to look to is this. We have the rules of the County
Council. So, with respect to Bill 159 that we're dealing with today, a motion to
reconsider the quarter percent would have been—should have been made earlier.
It hasn't, so trying to do a motion to reconsider now is time borrowed. Even if we
have somebody in the Council trying to amend the bill to increase the rate, there
would still have to be another public hearing on the amended Bill 159 and County
Council action has to be taken by June 29. So obviously, right now, there's
insufficient time for any further action of an amended Bill 159 by the Council.
Now, what I look to kind of deal with our office analysis is that you look at the
plain reading of Act 11. It's based on House Bill number 2587. The bill itself
clearly indicates that the County can adopt a surcharge. It doesn't say surcharges,
it says a surcharge. Moreover, when you read Act 11, it unambiguously states
that this surcharge can be adopted prior to June 30, 2018. That's happening now
and that surcharge would be levied on January 1, 2019. Or this one surcharge can
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Hawaii County Council-42 June 19,2018
be adopted prior to March 31, 2019, and that's the other bill with the surcharge to
be levied on January 1, 2020.
It should be noted that when you read Act 11, in an early draft of the house bill,
the proposed bill had actually indicated the possibility of having more than one
surcharge because of the use of the word"and." In the final adoption of the house
bill, the conjunction "and"was stricken and deleted and replaced by the
conjunction "or."
So, I heard our Managing Director speak of the efforts made by the Mayor to try
to get a surcharge, and I think that's one of the reasons why we have the either/or
situation that we're faced with today. So, if Bill 159 is passed today, I would say
that the Council actions satisfied Act 11 requirements of adopting a surcharge. If
the County later attempts to increase the surcharge to 50 percent for Bill 159 after
June 30, 2018 but prior to March 31, 2019, Act 11 neither provides the County the
authority to increase the surcharge, nor does it grant the County the ability to
waive or deviate from the required condition of Act 11. So, that's the process.
MS. DAVID: Okay, Mr. Kamelamela, then, let me clarify something. It's either
we vote on this quarter percent, Bill 159 today, and if we don't, if it doesn't pass,
we need to wait for Bill 102, is it?
MR. KAMELAMELA: Yes, Bill 102.
MS. DAVID: That was postponed and that was for the half percent. But then,
would that solve the dilemma that the department is in, and Finance is in, in
revenues because I understand that 102, since we didn't make this deadline that
we're up against now for June, that won't be in effect until 2020. That's two
more years and two more budget terms, and that would mean we would have to
find the funding from other sources.
MS. SAKO: That's correct.
MS. DAVID: Ms. Sako, would that mean that the options of raising property
taxes and the options of cutting services would come into play?
MS. SAKO: The option of cutting services or the budget, in general, would come
into play. The real property tax rates have to be enacted by June 20'h of each year,
which is tomorrow. I don't believe anyone introduced a resolution, although,
administration did provide proposed rates. So, I think the only option, if this
doesn't pass today, is to cut the budget. I do hear what people are saying. Some
would rather have the half percent. If this passes today, it would take away the
half percent. There are some concerns over the sunset date. I would hope that if
this doesn't pass today, that we would find a way to get it off the table before
January because we're going to start our budget process for fiscal year 2020 in
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September, and I think it would be helpful for the administration to have the
information on what revenue sources it's working with.
MS. DAVID: That sounds as bleak as I think it sounds.
MS. SAKO: I was trying to sound as depressed as I could.
MS. DAVID: You know, I think that's the reality of this, in my mind. I'm trying
to find out what is really our choices. I appreciate Mr. Chung's position. I'm
sitting here going, we either do something small right now or we have nothing for
the next two years. And, we also are put back in the position in being the step
child of the State Legislature in giving us back our TAT, and that's a whole other
issue. I just really would like to mention that the, and thank you, Mr. Okabe, for
noting the situation about the facts or testimony of Ms. San Buenaventura. And I
really took that as a personal scolding to this body when we are trying to do our
very best with what little the State Legislature is giving us to work with. That's
my personal opinion because we are in this position because we are not getting
our rightful share of what is due to this County.
Then add that, the crisis that we are experiencing in Puna and everyone's ideas of
how things should be and what should not go forward. But at this point, and
thank you, Mr. Kamelamela, because in my mind, the lesser evil in this whole
situation is to be in favor of 159. I've always been not in favor of a GE Tax
increase before this crisis, and I appreciate the fact that we shouldn't do or make
decisions based on emergencies, but to me, that's the reality that we face.
So, for me, although I know some of my constituents and the people that I really
respect and serve, this will affect them, I think the option if we don't do
something today, given our timeline and deadlines, the options will be worse, a
more devastating impact and not only in Puna, but to every single person on this
island. So, that's my feelings. And for me, based on what Mr. Kamelamela has
said, I will probably have to support this because I think that's the only choice we
have. People might not agree with me, but that's my position. So, I yield.
Mahalo, Mr. Kamelamela.
ACTING CHR. EOFF: Okay, thank you, Ms. David. Any other comments?
Mr. Richards.
MR. RICHARDS: Thank you, Chair. Deanna, the projections for the fuel tax
revenue last year were $14 million, as I recall. This year, with the increase, I
think it's $17.1 or $17.2. What's the projections for the next three years? Do you
have those?
MS. SAKO: So, in fiscal year 2019, the budget just presented, total fuel tax
would be $17 million and then $20 million in each of the following years.
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Hawaii County Council-42 June 19,2018
MR. RICHARDS: Okay, and then concerning the calculation of the GE Tax
revenue, based upon GDP (Gross Domestic Product) of what? What are you
using for that number for the County?
MS. SAKO: We really just went with what the collections have been at the
statewide level and took the quarter percent of that, which would be $12.5 million
for a half year and $25 million for a full year. If we were to go back to the half
percent, it would be $25 million in a half year, $50 million on a full year based on
the State's numbers. However, we haven't tried to look at it towards the future.
It hasn't passed yet, I guess, but I haven't look at what expected growth is in the
economy. And it's hard to look at that right now when I know hotels and others
on our island are struggling.
MR. RICHARDS: So, the $50 million with the half percent, that sounds like a
$10 billion GDP. Is that your best guess?
MS. SAKO: Probably. Just a second. Yes, that's where we're at.
MR. RICHARDS: Thank you. I yield.
ACTING CHR. EOFF: Thank you. Comments? Hilo? Anybody? I can't really
tell. Did you put your hand up, Ms. Ruggles?
MS. RUGGLES: Thank you, Chair. I just want to say, everyone here has heard
this before, but I'm just going to repeat it for the public. All taxes remove money
from the people, and that means that they have less to spend on their basic
necessities. The PowerPoint that was presented to us before said a 25 percent
increase for $50 bag of groceries would mean a $0.13 increase for that bag. that
to me, really minimizes the impact, the real impact because according to the
Department of Ag and the most recent Consumer Economic Report in 2014 for
the County of Hawai'i, in the most thrifty food plan, a family of four pays $1,161
per month. With a 25 percent increase, this means that they would pay $36 more
every year,just in food. $36 may not seem like a lot, but when you think about
that food makes up only 14 percent of what the General Excise Tax would charge,
we're looking at a lot more. We're looking at about $100 more per year. This
hurts people on fixed incomes. We will not help the poorest of the poor by taxing
them.
Fifty percent of the island is living paycheck to paycheck. People living paycheck
to paycheck means that they're one paycheck away from becoming homeless and
being more cost to the County. We need to protect them from tax increases and
that's the bottom line. We have great wealth on this island and amazing wealth
income disparity. So, I believe that we should protect those that are struggling
right now and tax those who can afford it. Those on the island that are competing
for who can fit the most helicopter pads on their yacht, let's tax them.
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Hawaii County Council-42 June 19,2018
On Oahu, they implemented the residential A class. This is currently in
litigation, it's in the appellate court. The conclusion should be out soon and in the
meanwhile, I think that we should borrow from the PONC (Public Access, Open
Space and Natural Resources Preservation Commission) Fund, the Geothermal
Fund, and see what the State would cover for our deficit for the upcoming year,
and use the second million-dollar tax home option as our long-term solution.
I'm concerned about our disadvantaged populations. The people in my district
are the poorest. They were not born into wealth. They're struggling right now to
raise their families and they're struggling even more with the lava. To tax them at
the register now, I believe is not helpful and misguided. I cannot support this.
There are other options. Thank you.
ACTING CHR. EOFF: Thank you, Ms. Ruggles. Any other comments, Council
Members? Ms. O'Hara, I believe.
MS. O'HARA: I believe Ms. Lee Loy had her light on first.
ACTING CHR. EOFF: Okay, I could not tell. Thank you. Ms. Lee Loy, go
ahead.
MS. LEE LOY: Thank you, Chair. I'm sitting here listening and reflecting on a
few things and especially where we started. We started at the half percent and
from day one, Council Member O'Hara and I voted kanalua yes in hopes to get a
plan. And here we are, at the 1 Ph hour, still looking for a plan, and I really
commend Ms. Sako to finally have shown us a plan on where the money is going.
But what's bothering me right now is we got to go big or we got to go home,
because now we have an emergency that's really putting a lot of pressure. It
bothers me that our Council Chair is still trying to figure out the difference
between the General Fund and the Highway Fund and how monies are moved
back and forth.
It also bothers me that we have a sunset clause and I get an inkling that some
people want to pass this now, and then cut out the sunset clause. So, if that's the
case, let's just be honest and tell the truth. Go for the half percent and let our
constituents know we're not going to put a sunset date on it. To be here at the
1 Ph hour is frustrating, but I'm going to be my best self. I'm going to be honest.
I want the half percent. I want a plan attached to it, and I'm willing to put down
the quarter percent right here, right now, so everybody works hard to give us a
plan to hold us accountable, not only us, but the administration, and something
that the people can rely on because we heard from the beginning, nobody wants to
give a blank check.
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I'm really disappointed. I really want us to work together. I think there were so
many opportunities along the way. If this is what it takes to hold firm, to hold the
administration accountable to provide a plan to attach it to Bill 102, I'm fine with
that. Tough times create tough people. I really believe in that. That's where I
stand right now. I'm not going to mislead the public. I yield.
ACTING CHR. EOFF: Thank you. Ms. O'Hara.
MS. O'HARA: Is Mr. Kamelamela still available?
ACTING CHR. EOFF: Yes, he is.
(Note: At this time, Corporation Counsel Joseph Kamelamela came
forward to address the members of the Council.)
MS. O'HARA: Aloha.
MR. KAMELAMELA: Aloha. Good morning.
MS. O'HARA: Good morning. Mr. Kamelamela, we had this discussion, I
believe it was two maybe three Council meetings ago, where I asked you to
clarify why your opinion that Bill 102 was postponed until a specific date in
January, did not mean that it could not be called back at an earlier date. Did I
understand that opinion correctly?
MR. KAMELAMELA: Yes, that was my opinion as tobecause I had, from
what I recall, I looked at what action meant. But I'm not sure what
MS. O'HARA: Okay, so it could be called back earlier then. The reason I bring
this up is leadership has repeatedly said that the reason they would have brought
back 102, but for the fact that it was deferred or postponed until January, but I
was pretty clear that your opinion was it could be brought back at any time. So, I
don't really appreciate that being used as an excuse. Furthermore, leadership had
said they didn't want to pass a half percent and they're not even inclined to pass a
quarter percent. So, I see this as a bit chicanery.
I agree with Ms. Lee Loy that people need to be honest here, with their positions.
Absolutely. Ms. Ruggles has been absolutely honest with her position, she
doesn't support it. She also has not provided us with a measure to replace those
revenues, which maybe she is planning on coming up with something, but it's
awfully late in the game given that it's June 19'h. So, it's one thing to speak about
things, it's another to take action.
I'm very concerned with where we find ourselves today because I think that
people haven't been honest with themselves or with the status of the County's
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Hawaii County Council-42 June 19,2018
budget. We needed a half percent increase prior to this event that occurred
starting May 3rd. I do not want to treat GE Tax as a stopgap measure, as an
emergency measure only. That is irresponsible in terms of fiscal management. It
doesn't allow our County and its departments to plan for the future when you're
purchasing large equipment or you're planning roads, whatever. You need to
have some idea of future revenues and we've given them a blank, literally a blank.
So, I'm not willing to support the quarter percent with the amendment that
requires that it sunsets in 12 months. It's not sufficient. The purpose of doing the
GE Tax is not to pass a stopgap measure for the emergency in Puna, because
we've lost in tax revenues, and to our best estimate, it's $5 or $6 million. Hey,
guys, it could be higher.
I just got my letter for my property in Kapoho. I'm not really sure that we have
fully assessed how this is going to impact us in the next fiscal year, 2018-2019
because we haven't looked at appeals that will be coming in. Appeals from, say
agricultural concerns that have lost their entire crop. So, it could be greater. We
don't know yet. But, I'm not willing to pass a GE Tax, one-quarter percent for 12
months as a stopgap measure for an emergency that could continue on, and
continues to affect the whole island, not just Puna, the whole island. That's where
I stand on it as of now. So, I just want to state that.
I want people to be absolutely honest on their positions. Now, they may have
formulated their positions from their heartfelt concerns, maybe not from
quantitative analysis, whatever, but let's be honest. We had this discussion
yesterday in the context of amending the Ethics Code, so, let's all be honest about
things. Thank you.
ACTING CHR. EOFF: Thank you. Is there any other comments from Hilo
before I go back to Kona? Okay, Council Members here in Kona?
Ms. Poindexter.
MS. POINDEXTER: I just want to say we're are all being honest here. The
honest that we feel that hearing the voices of our people and trying to reflect on
that. I'm trying to figure out which is the best way to go. After our last hearing,
I've been meeting with groups, I've been meeting with individuals, I've been
having e-mails back and forth, phone calls, you name it. I'm very busy. I've
been contacting you, Deanna, back and forth on this and talking to constituents
about does the quarter percent feel better than the half percent? Of course, it does
because they feel that we've got to find ways to start looking at a budget that we
can start living within our means.
So, a lot of them felt, okay, cutting it to a quarter percent and having that
timeframe shortened gives them a little bit of comfort that maybe we can see
because right now, they've lost a lot of trust, okay? That's the truth. They've lost
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Hawaii County Council-42 June 19,2018
a lot of trust. So, a lot of them feel this would be better, but yet, some say, "Hey,
what guarantees better services?" What will be the guarantee for better services?
I cannot give them a guarantee, but can we have quarterly departmental reviews?
Then leading up to the next budget, at least we'll be kept abreast of what's
happening in the departments. So yes, I'm struggling with this. To say, "Hey, tell
the truth," or"be honest,"we're being honest. I'm being honest. I'm struggling
with this because we're putting it on the tax payers' back again.
And like Council Member David had stated, that .5 TAT that was put on our
island to pay for O`ahu's rail, that's a dirty shame. To come and get scolded, I
agree, I didn't sit well with that. Because don't come pointing the fingers when
you've got your thumb pointed right back at you.
Thank you, Senator Ruderman, for your heartfelt testimony this morning.
Because of what you were saying, I'm telling you, I'm really on the fence. If
anything, I will not vote for a .5. That, I'm going to guarantee you guys. I'm not
because people feel that you get the .5,people will become complacent. Here it
is, it's a shorter term, less amount of GET, people can start to live with that
saying, "Okay, we are going to give and we're going to see what happens." Let's
build that trust.
Whatever the State Legislature goes back in for or redo something, whatever to
help us, that would be great, but when we talk about the poorest of the poor—and
I agree, I have been agreeing with Council Member Ruggles about how it affects
our poor because a lot of the people that are calling me are a lot of the people who
are struggling. However, when they heard about cutting services, when the
people who go to the pool, the parks, and the gyms who are the poorest of the
poor in my community that are going there for free, are saying, "Please don't let
them cut those services." Waipi`o Ranger Program, don't let them cut, it's
affecting our valley. There's a head on collision, things are going on there, don't
allow the services to get cut. If we do, those are the—the pools, you look at the
pools, the seniors. If you go to Honoka`a pool every day, you'll see how many
seniors are there doing water aerobics. So, when we talk about cutting services, I
know it's detrimental to communities because what we're doing is we're taking
away some of the health and safety of the community and where people gather,
people exercise, a lot of things happen with the services that we're providing
already for free.
You start charging a fee, the poorest of the poor are not going to be able to come
and swim or play at the gyms or our playgrounds. I don't know what would
happen. Am I willing to risk it? The more Ihearing Senator Ruderman, too, am
I willing to risk that? Am I willing to risk putting my district into a situation that
we're going to be in an emergency need because of this? The lack of services
because we have to cut services and what's going to happen to my community?
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Hawaii County Council-42 June 19,2018
So, that's what I got to think long and hard about. I have got to truly hope that
our departments and everybody in County government take this seriously enough
that if it does pass, that we work hard to prove to the community that we can be
trusted, that we're going to work on their behalf, and then look at where we can
generate revenues.
I've said this before, I've talked with the House Speaker, with the Finance Chair,
Vice Chair, I mean, with our Maui Chair, Mike White there. They were talking
about getting together to make sure that they can look at what other types of
taxing authorities they can give us besides the GET. You had another testifier
here yesterday at the public hearing, maybe there's a way you could do other
taxes that are not going to just totally put it on our residents' back. So, there are
other opportunities there.
So, is this a stopgap? Hey, maybe we've got to use this as a stopgap for the
betterment of our community so that we don't put them in a bad situation and turn
that into an emergency need. So, that is my truth and that is what I really believe.
So, calling each other out and saying, "Eh, tell the truth," or whatever, that
doesn't help. We've got the community listening in on here and here, we, as a
Council, feel like we're falling apart. But, we are just telling—we're able to
speak what we believe to be our truth or what we believe our community is
saying. So, I respect everybody else's opinion as I would ask that they respect
mine. Thank you.
ACTING CHR. EOFF: Okay, thank you, Ms. Poindexter. Council Members?
Anybody else wish to speak? Mr. Chung.
MR. CHUNG: Can I call on Joe again, please?
ACTING CHR. EOFF: Sure, he's still at the table, Mr. Chung.
MR. CHUNG: Joe, is there a possibility, I mean we already had the public
hearing on this matter, is it possible to amend it today to remove the sunset clause
and to hold a special meeting prior to June 30? Would that be legal? I mean
given the requirements that relate to the enabling the legislation.
MR. KAMELAMELA: Joseph Kamelamela, Corporation Counsel. The question
is whether you have enough time. Right now, I'm not familiar with the calendar
because you amend it today, then you've got to go back toI mean the way that
the notice was written so that the public is notified that there is a slight difference
that we're going back—it's getting rid of the sunset clause. I mean just to be safe,
another public hearing, and
MR. CHUNG: Okay, that's all I wanted to know. I just wanted to know if
another public hearing was needed.
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Hawaii County Council-42 June 19,2018
MR. KAMELAMELA: Okay.
MR. CHUNG: Okay. Then, at the same time, this would be my suggestion. I
don't have any control over the agendas, but, I would say we should resurrect, I
mean bring back the .5 and hold another hearing, hold another meeting. That's
really a decision that I can't make, but, I will say this. I mean I'm not trying to
accuse the Chair of not being truthful or anything like that. I certainly don't want
to have this meeting degenerate into something like that, but, I'm always asked to
vote first, right? I'm the first guy, Chung, I've got to vote first all the time. But, I
don't think it's unreasonable for me to ask the Chair, she is after all, the leader of
this group or at least the leader of the majority, to tell us how she is going to vote
on this matter. And if she doesn't want to, that's fine. If she's still grappling with
it and she has to see how the votes fall, I can understand that too. But I don't
think it's an unreasonable request. That's all I have to say. I'm hoping that she'd
answer me. Thanks.
ACTING CHR. EOFF: Thank you, Mr. Chung. Ms. Poindexter.
MS. POINDEXTER: Yeah, I'll answer that. I'm leaning more in favor of the .25
because I don't want the .5. Like I said in my previous conversation about the
choice that I have for my community and the feedback, yeah, some people will be
hurt by that, but like anything, and like what I said yesterday, there's no absolute
in everything. Somebody is not going to be happy. People are not going to be
happy. But, when I look at the long-term effect on my community, I would prefer
this .25 in the short period than going for a .5 for a long period, which will give us
time to seek out other revenue sources.
And then to get back to the Highway Fund and the comment that Council Member
Sue Lee Loy made. I was basically trying to find out within the contracts within
the Highway Fund, if those include salaries and stuff that could be shifted out. Is
there any way that something could be done legislatively or whatever? So, that
was an honest and sincere question I had in looking at ways because if you don't
ask, you cannot figure out if there is some type of loophole. So, it's good to ask.
Maybe you won't get the answer you want, but, it's better to ask than not to ask
because maybe there's some type of loophole there. But anyway, I just wanted to
give you that. So, I thank you for allowing me to speak and respecting what I had
said. Thank you.
ACTING CHR. EOFF: Thank you, Ms. Poindexter. Any other comments?
Questions? Seeing noneoh, Ms. David.
MS. DAVID: Thank you, Chair. I'd like to check with our Deputy Clerk,
Mr. Henricks, on the suggestion that Mr. Chung has made, whether an
amendment, given we had a public hearing on this, what's the timeframe for
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Hawaii County Council-42 June 19,2018
something like that? Is it possible, given our mandates of posting and notice,
et cetera?
MR. HENRICKS: Is it possible to do what exactly?
MS. DAVID: Well, amend Bill 159.
MR. HENRICKS: Today?
MS. DAVID: Today, is what I understand. Change the percent to half a
percent and then have a public hearing and act on it after the public hearing.
MR. HENRICKS: All prior to the 30'h?
MS. DAVID: All prior to the 30'h.
MR. HENRICKS: May I ask Mr. Kamelamela a question?
MS. DAVID: Sure.
MR. HENRICKS: Did you say whether or not another public hearing is required
if the bill were to change in that manner? I mean a public hearing, not, of course,
another reading, a public hearing that would be dedicated just to this bill, like we
had last night?
MR. KAMELAMELA: Yes.
MR. HENRICKS: Okay. And I need a little time. If you're looking at that, then,
you'd go for the 28�h for your public hearing and then your special meeting on the
29'h, which I think would need to be agreed to in some manner. Maybe perhaps
by a motion so that it's not assumed that would happen. I don't know if we'd
have time to publish with newspapers because that's required for public hearings.
We could certainly create the notice within six days, but there's also the
requirement that we publish with newspapers and that is a more lengthy process
than publishing or posting our own notices. I'd have to look into that.
MS. DAVID: Well, thank you for that. Well, in my mind, I really think we're at
the 1 Ph hour on this whole issue anyway, and even given Mr. Chung's
suggestion. My final comments on this is as far as being honest, I don't think this
has anything to doI think honestly, in the last couple hearings that we've had on
this bill or the last hearing, I think it was pretty clear who was not in support of
the half percent. It was myself, I can say that. Then, given the situation that we
were presented, unexpected, I thank the efforts of my fellow Council Members.
In fact, I think it was Ms. Lee Loy that put forth an amendment because I think
the sense was at the time following discussion, at least for me, that a lesser
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Hawaii County Council-42 June 19,2018
amount and maybe a sunset date,just to see how things were. That is honestly
why I changed my position, because a sincere effort was made by a fellow
Council Member to get us, as a body, to agree to something to help out with this
budget.
And then I sit here after going through the public hearing, and then I'm hearing
suggestions to go back to what it was. So, given—it just seems to me that I don't
think we have time to go back and forth. I mean these things should have been
discussed at our prior hearing. If you didn't want the quarter percent, then don't
bring forth a proposition to make this body be more palpable to the increase. And
now, we're faced with a decision that or possibility or suggestion that it go back
to a half percent.
Well, I think I'm not doing my community any justice if I myself flip-flop. I will
stick to my position that I really believe the quarter percent, however it unfolds,
whether it should be people think it should be half a percent. Now, what's
before me and what I honestly believed after prior discussions, this is what is the
best, in my mind, and I don't care to flip-flop back and forth. I think it doesn't do
our people justice. So, I'm sticking with the quarter percent and however else this
body would like to justify their change or their change of heart, that's their
privilege. But that's all. I yield.
ACTING CHR. EOFF: Okay, Council Members, further discussion.
Mr. Kanuha.
MR. KANUHA: Thank you, Madam Chair. Again, mahalo Deanna and
Mr. Okabe for being here and presenting all the issues that have been coming up
and how we, as a Council, need to decide how we want to move forward with
either passing this or not passing this GET. Previous to the eruption, I was
against the GET. During it, I still was against GET. And afterwards, I'm again,
I'm still against this tax. I have never been in favor of the GE Tax. I don't like
how it's set up, the State Legislature has it set up, but that's not my decision to
make. It is what it is. I don't like the fact thatI won't go there.
Talking to a lot of constituents, I do have constituents that are in favor of this
because they know the benefits that come with this. The road projects, I mean,
when I first came on the Council, that was the number one thing that everybody
wanted to fight for here in Kona, is making better roads. So, we fight for it. We
get the mauka/makai connecters, we get the roads paved, we get additional things.
La`aloa was one of the first County roads built within the last, I don't know, 40 to
50 years or something. So,projects did happen. So, that's why it is important to
recognize the importance of this tax and what it does to benefit the community.
But, then I get a lot of constituents saying, "Dru, your district is one of the highest
taxed districts that provides the revenues for this entire island, and additional
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Hawaii County Council-42 June 19,2018
taxes is just too much to handle." So, it's a tough situation where a lot of
constituents are saying they're being over taxed. And I tell them I'm going to try
to reduce, I'm going to try to see if we can cut, but there will be some
ramifications to the services that are provided. So that's why it puts us in this
tough position becauseI keep telling my constituents that it's hard to tell them
their services are being cut when they pay so much taxes already. So, that's what
puts me in a very difficult position.
But, I hear from everybody. We've got to provide, we've got to work with each
other to provide for this entire island. I came on the Council wanting to do that,
wanting to work with each Council Member to provide for the services of this
entire island. So, I never want to split what I have to do for my constituents with
a different district. That's not how I function. That's not how I will, in the future,
function. We've got to find a way to provide for this entire island. I just it's
just a very difficult position to put myself in to vote for this. I just wanted to say a
lot of what's on my mind and what I've been dealing with as a representative
from this Kona district. I have to continue to vote how I feel and how I feel is the
pono way and I still continue to not support the GET. I just have to say that.
That's my position, and unless something extraordinary comes out that leads me
to a different position, that's the position I'm going to have to take. So, I
apologize to my fellow Council Members if you feel differently, but I just can't
support what currently we have on the table today. Thank you.
ACTING CHR. EOFF: Okay, thank you, Mr. Kanuha. Any other comments?
Well, I guess I'll make a couple of comments and observations. It doesn't appear
that we have enough votes for .5. We never did and it doesn't seem like we do
today. So, the idea that is floating from Hilo right now, from Mr. Chung or
Ms. O'Hara or Ms. Lee Loy, that's what they would rather see us do. There's no
guarantee that we—well, first of all, it's pretty risky to try and bring that back
right now and it may fail. The .25 seemed, as of the last meeting, to be a
compromise situation, philosophically, on the part of, I think a majority of us and
maybe we have a couple more coming on board with that idea.
The other thing that's very concerning is that killing this bill today and trying to
wait until January, besides no guarantee that it passes, but the other problem with
that is I see it is that the money will not start to benefit us until 2020, correct?
Yes, until 2020, somewhere in the middle. So, I don't know how we can possibly
patch the deficit that we're looking at with a loss of real property taxes this fiscal
year and most of next. So, it doesn't help us to wait. And although the .25 is less
than some of us want to see in this County, others of us aren't willing to support
that at all. So, I like compromise. I've come to learn that is one of the better
ways to participate on a nine-member board, and sometimes you have to look at
or weigh negatives and positives. For me right now, I've committed to the .25
because I've seen the positives outweigh the negatives right now, of not doing
anything. We don't have much time. Today is probably the day.
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Hawaii County Council-42 June 19,2018
So, I would urge us, if you guys want me to take a recess and think some more or
if you want me to go ahead and ask for the vote. I don't know, I don't hear too
many more comments at this point, but I'm willing to entertain them even though
I have spoken. So, thank you, everybody, and I appreciate the urgency and the
information that's been provided to us today. Okay, some people over here would
like a five-minute recess. Is that okay, Hilo? Okay, I'll take a five-minute recess.
Thank you.
Recess: At 11:52 a.m., the Acting Chair called for a recess.
Reconvene: The meeting reconvened at 12:05 p.m.
ACTING CHR. EOFF: Are we ready? Hilo, are we ready? I'd like to call the
meeting out of order and we are back in session. Council Members, would
anybody like to continue discussion or say anything further or would you like me
to take the vote now? Hilo, is there any further discussion? Ms. O'Hara, okay, go
ahead.
MS. O'HARA: Can Deanna step up? Is she still here?
ACTING CHR. EOFF: Yes, she is. She's coming.
(Note: At this time, Finance Director Deanna Sako came forward to
address the members of the Council.)
MS. SAKO: Deanna Sako, Director of Finance.
MS. O'HARA: Deanna, I know you've given kind of an estimate on how much
this quarter percent would add to the County's budget. Anyhow, if we passed the
quarter percent, which would go into effect January 2019 and we sunset it, as this
bill calls in December 31, 2020, that adds revenues to basically three separate
fiscal years, if I'm correct. I just wanted to know if you could give an estimate as
to how much that would add to the revenues for this coming fiscal year, the
second year from now, and the third, given that GE Tax estimates are based on
economic activity on the island, which as we've seen from this event which is
impacting the entire island, it has reduced that economic activity. I know
originally, we were told that the GE Tax would provide an additional $20 to
$25 million per year. That estimate was increased to $40 million a year and I
don't know if there've been any new estimates based on what we're seeing in
terms of trends of economic activity on our island. So, if you have the latest
estimates, that would be great to share.
MS. SAKO: Unfortunately, the State is kind of delayed in their reporting, so, I
don't have any new estimates. Let's say for the month of May, that may show it's
going down. We did try to be conservative on the current year impact of the
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Hawaii County Council-42 June 19,2018
$10 million, or I guess for fiscal year 2019. Hopefully, a full year of GET at a
quarter percent would continue to be $25 million. You're right though, it may be
less than that, it may be $20 to 25 million, somewhere in that range. At least it
would be a full year. Then the following year would be a half year so $10 to
$12.5 million in that last year.
MS. O'HARA: Okay, I appreciate the response on that. I just wanted to—the
total then would be $40 million give or take, $40 to $45 million over the span of
three fiscal years?
MS. SAKO: Correct.
MS. O'HARA: When planning for equipment purchases and road planning, is it
not the case that we need to look forward over a span of three to five years?
MS. SAKO: When we because of the budget shortfalls or tightness that we've
been having in the last few years, we've gone to leasing our equipment rather than
purchasing out right in many cases. Most of those are a five-year financing lease,
just like a short-term loan. So, we would need a longer term to be able to do that.
That's correct.
MS. O'HARA: Is it not the case that we're putting a lot of wear and tear on our
machinery currently? At least DPW? I'm not sure about some of the other
departments, but DPW has been involved in a lot of roadwork, which adds a lot of
machine hours to our current equipment. Is that not correct?
MS. SAKO: That's correct. And both of our pavers were down. They're now
working again but our equipment does take a beating overall.
MS. O'HARA: With regards to being able to obtain FEMA money and/or State
money to help with emergency response, will that cover any of those additional
machine hours in terms of being able to purchase replacement equipment?
MS. SAKO: It works kind of in a way that we get to bill by the hour or the mile
depending on the type of equipment. While we do get a reimbursement for them
from the disaster, it really just helps to recover the cost that we've experienced,
whether it's servicing the vehicle and what not. I don't know that it would be
enough to replace a vehicle. Of course, I don't know how long this event is going
on either.
MS. O'HARA: Is the depreciation schedules for the equipment adequate to
basically recover cost of new equipment?
MS. SAKO: Our depreciation is kind of independent of our replacement cycle.
So, while we do have depreciation and we do reflect it in our CAFR
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Hawaii County Council-42 June 19,2018
(Comprehensive Annual Financial Report), we don't like fund our depreciation to
be able to replace equipment. We do it on an as needed basis, which is why you
see some of the older vehicles on the road still yet.
MS. O'HARA: Okay, thank you. I just want to continue to point out that
resolving this is not a district issue. I hear a lot of comments about the impacts on
individual districts. This is a countywide issue, and if we don't pass this current
quarter percent with a sunset date of December 2020, we will be experiencing
we'll have to experience cuts that will affect everyone on the island. There's no
way to do that equitably in terms of income levels. It's going to hit the poorest of
the poor the most.
So, while I would love to standoff on this issue and not vote in favor of it, it is
very troubling that we've been put into this position by basically a lack of
foresight. We've been discussing this issue since February, I think it was, when
the Mayor first introduced Bill 102, and basically kicking the can down the road.
As I said before, we needed the increase in revenues to be able to bring a bus
system, a sufficient bus system with good collections in terms of handling the
revenues from that. In order to make those changes, it's going to take additional,
new money, and I have argued that all along.
But, I think a lack of foresight has gotten us into this position, this more or less of
a pickle, and we have a disaster to account for. We might have more disasters.
We're just on the brink of hurricane season, or we're already in hurricane season.
God forbid that something happens to us. But, we are an island in the middle of
the Pacific that is very prone to all types of natural disasters and God forbid we
have any man-made disasters hit us. But, I just am very concerned that we are in
a very poor fiscal point, and there's really no reason for it. The economy,
nationally, and even in the State is going, well, unemployment, very low, and yet,
somehow restricting and applying this fiscal austerity is seen by many as a way to
handle the problem, but it just exasperates the problem. It just makes—insures
that the Big Island will be the poverty center of the state. I'm really sorry about
that thinking because I`m really reluctant to vote for this today. Thank you.
ACTING CHR. EOFF: Okay, thank you, Ms. O'Hara. Anybody else wish to add
any further thoughts? Okay then, are we ready to vote? Bill 159, Draft 2,
Mr. Clerk, roll call vote, please.
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Hawaii County Council-42 June 19,2018
Vote on Bill 159: The motion to pass Bill 159, Draft 2, on second and final
Draft 2 reading failed by the following voice vote:
Failed
Ayes: Council Members Chung, David, Poindexter,
and Acting Chair Eoff—4.
Noes: Council Members Kanuha, Lee Loy, O'Hara,
Richards, and Ruggles —5.
Absent: None.
Excused: None.
(Note: Ms. O'Hara voted "kanalua" then "no.")
ACTING CHR. EOFF: I guess we'll go back to the agenda, top of the agenda.
Let's take a lunch break and we will reconvene at 1:30, okay?
Recess: At 12:17 p.m., the Acting Chair called for a recess.
Reconvene: The meeting reconvened at 1:35 p.m.
ACTING CHR. EOFF: I'm going to call the meeting back to order, Council
Members. Starting at the top of the agenda, let's do the Approval of Minutes.
APPROVAL The Acting Chair directed the Council to proceed to the next order of business,
OF MINUTES: Approval of Minutes.
Vote on Approval of Mr. Richards moved to approve the Minutes of May 9,
Minutes: 2018. Seconded by Ms. Poindexter and carried by the
(Approved) following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
and Acting Chair Eoff—8.
Noes: None.
Absent: Council Member Ruggles — 1.
Excused: None.
ACTING CHR. EOFF: And the motion to approve the minutes of May 21, 2018
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Hawaii County Council-42 June 19,2018
Vote on Approval of Ms. David moved to approve the Minutes of May 21, 2018.
Minutes: Seconded by Mr. Kanuha and carried by the following
(Approved) voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
and Acting Chair Eoff—8.
Noes: None.
Absent: Council Member Ruggles — 1.
Excused: None.
ACTING CHR. EOFF: Communications. Mr. Clerk,
Communication 960.
Comm. 960: AUTHORIZES THE ACCEPTANCE OF A DONATION OF OFFICE
FURNITURE
Donated by Hapuna Prince Hotel with a total estimated value of$875, this
donation would be used at various Department of Parks and Recreation facilities.
Waived: FC
Vote on Motion to Ms. David moved to accept the donation of office furniture
Approve: to the Department of Parks and Recreation. Seconded by
(Approved) Mr. Richards and carried by the following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
and Acting Chair Eoff—8.
Noes: None.
Absent: Council Member Ruggles — 1.
Excused: None.
ACTING CHR. EOFF: Communication 966.
Comm. 966: FUEL TAX REVENUE REPORT FOR FISCAL YEAR 2018-2019
From the Department of Public Works and Office of the Mayor in compliance
with Resolution 212-17, Draft 2. Increased fuel tax rates are projected to generate
$17,152,903, which would be used predominantly for road paving, mass transit
projects, and signal upgrades.
Waived: FC
Motion to Close File: Ms. David moved to close file on Comm. 966. Seconded
by Ms. Poindexter.
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Hawaii County Council-42 June 19,2018
ACTING CHR. EOFF: Any discussion? Ms. Sako is here. Mr. Kanuha.
MR. KANUHA: Thank you, Madam Chair. Is Public Works here?
MS. SAKO: There he is, I knew they were there earlier this morning. Aaron's in
Hilo.
MR. KANUHA: Can you just tell us about this report, Aaron?
(Note: At this time, Department of Public Works Business Manager
Aaron Brown came forward to address the members of the Council.)
MR. BROWN: Aloha, Aaron Brown, Business Manager of Public Works.
Aloha, Council Members, thank you for having me today. I want to introduce this
communication, which is our annual fuel tax revenue report. I want to start by
just making a statement based on some of the comments I heard earlier today and
just conversation that I've been having with many of you. The first point I want
to make is just a reminder that our Highways Division, which is one of the
divisions which is helped—is partly funded by the fuel tax revenue, we do a lot
more than just roads. Yes, roads is a major pillar on what we do, but we also
manage a lot of the drainage control. So, as of June first, we all know that
hurricane season is right around the corner and this is a big initiative for us to
make sure our dry wells and other drainages are clean and up to par in case we do
have an episode of a lot of rain. We also do the regular road maintenance, and
that's a big thing of what we do and that's a continual operation that goes on
every day.
So, there's a lot of other things that we do than emergency response as we all can
see, which is right now coming into play a lot. I want to give a big thank you to
all of our Highways guys, the team down there. I've been up trying to help in the
EOC (Emergency Operations Center) coordinate some stuff with them. Those
guys on the ground are doing just amazing work. I cannot thank them enough for
what they're doing, and all the other Highways guys in Ka'u, South Hilo, they all
have been stepping up when they needed to be, working long hours. Those at the
baseyards kind of stepping it up while we deal with the lava in Puna.
I just wanted to thank all of our Highways guys. From a Public Works
perspective, I think everyone on the team has been, from Highways to Traffic to
our Admin guys, we're all trying to come together and work through this lava
event and a lot of the operations that we're doing down there. Thank you guys for
understanding the severity of where we were, I think about a year and a half ago
when we looked at the fuel tax and the dire need to increase the fuel tax revenue,
because that's what's keeping us right now with all of our operations.
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Hawaii County Council-42 June 19,2018
And again, in case you didn't hear me earlier,just to reiterate that we do roads
and that is a major pillar but we do a lot more than that, especially right now on
the East Side, our Puna base yard. Ka`u is helping and South Hilo. The lava
response is a major priority for us, so, this fuel tax revenue is allowing us to
conduct those operations and be there and do what we need to do out there for that
community.
So, this fuel tax revenue report is basically similar to last year and it's giving us a
summary of where we are expecting to generate. And again, these expectations
are based on what we've seen in the marketplace before the lava started, which
was sort of a healthy consistent consumption. So, a lot of these estimates are
based off of those. What's going to happen moving forward with the decrease in
visitors, and I know just the Volcano National Park alone, we were tracking over
a million visitors. What's going to happen? I don't know, but I know that
consumption may decrease, so, we'll have to adjust accordingly. But, these
numbers here were put together based on the assumption that we had consistent
consumption. So, we're expecting to get $17.1 million in fuel tax revenue, which
is an increase of about $4.6 million. So, it kind of lays out where that money is
going, which you can see in the table provided. I think this was—most of the
report was based on a lot of data that came up before May 3.
We may be looking at having to reutilize money. Some of our big equipment and
other things like that, based on not knowing what was going to happen with the
GET and this, we sort of delayed a lot of those equipment purchases because we
knew we may have to divert resources to emergency response.
Again, emergency response, yes, we're working very hard with FEMA on making
sure that all of our documentation is ready to submit for reimbursement. But I
want to reiterate, please remember we're doing our best to track everything,
however—and FEMA has been very supportive up to this point but there are
certain things that are not reimbursable or only reimbursable to a certain
percentage. We're going to do our best to get everything we can, but it takes
time. There are FEMA projects open that are ten plus years old. So, I don't think
we can count on FEMA money coming in right away to make sure our coffers are
there to do the other things we want to do in the Highway Fund.
The fuel tax also helps our Traffic Division and Mass Transit. That's one revenue
stream going into the Highway Fund. So, I think when we look again at what
does the fuel tax revenue provide? It provides things, not just for highways, but
also for Traffic and Mass Transit, and I think we forget that sometimes. As you
can see, this is just where the money is. We're expecting to get $4.6 million in
addition to last year.
We will be continuing with our road paving projects and that is a main pillar that
we are definitely working to get better at. One statement I want to make is we're
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Hawaii County Council-42 June 19,2018
always trying to get more efficient and utilize our funds the best. So, this year,
instead of having to actually look at buying a brand-new paver, Neil did a really
good job working with other government agencies. We were able to find a
second paver up in the National Park that have been sitting. So, we went ahead,
and thanks to the funds being there, we were able to move quickly and get it
before anyone else did, meaning the State. It had been sitting for a while so we
had to invest some money to get it up to speed. Now that it's up to speed, we had
saved hundreds of thousands of dollars.
When we paved Government Beach Road because of the severity of the situation
at the time, unfortunately, all paving projects had to stop. All of our resources
were sent there and we actually paved that stretch of road in two and a half days.
So, we had two of our pavers going. Unfortunately, both of them broke down
because of the wear and tear. So, we did outsource a third paver to come and
finish the work, but, we were able to get it done. That's just hats off to the guys
down there trying to make that road as an egress for the whole Kalapana area.
Because if that road would have been compromised, that's the only way out. So,
we are a little bit behind in that sense in road paving, but that is something we will
continue to do. Now we have two road pavers, so, we're going to have one pretty
much on each end of the island, and this tax money will be utilized for that, again,
in conjunction with draining, a lot of the drainage cleaning, it being hurricane
season.
We're looking at doing a lot of—our Traffic Division is looking at synchronizing,
making smart street lights and signals and things of that nature. That's a big
initiative we're moving towards. A lot of the LED (Light-Emitting Diode)
lighting is already in so we're kind of shifting gears and that should help with
relieving traffic, making things more efficient on our roadways. School safety is
a big initiative that we're still working on. I mean this report kind of lays that out.
I can answer any further questions you guys may have, but that's kind of an
overview of where this money is going. Again, investing into out Mass Transit
System a little bit, too, to make sure they get what they need. I'm here for any
questions you guys may have.
ACTING CHR. EOFF: Okay thank you, Mr. Brown. Mr. Kanuha.
MR. KANUHA: Thank you, Madam Chair, and mahalo for that overview. I did
want to commend Public Works for all of the work you guys are doing to keep
people safe during this eruption and the amount of time that's being spent and
helping the people of Puna. We really want to thank you guys for everything that
you're doing. I know a lot of attention's being put over there from the
department. Desperate times, we've got to take care of this emergency situation.
So again, I know you guys are working really hard and I just wanted to thank you
guys for taking care of our people.
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Hawaii County Council-42 June 19,2018
I don't have too many questions. There are some resurfacing projects on here that
I'm glad to see, especially Mamalahoa, between Teshima's and Konawaena, both
North and South Kona. There are some places between there that are pretty bad.
So, I'm glad to see that on the list. I know it doesn't have any timelines, but can
you give us an approximate timeline of that specific project? I know priority
number one right now is taking care of our people in Puna and that district, but
just so I can come back to my constituents and tell them some good news that's
going to be coming out of the additional fuel tax monies that we increased last
year.
MR. BROWN: This might sound generic, but as soon as we can might be the
answer. No, I think because our pavers were mobilized down in Puna and now
that they're back up and running, I think I can talk story with you a little bit more
and get you a better estimation of when that project may commence. I know he
has logistically, a big plan on how he's rotating the pavers now, based on their
availability. So, I can talk story with him and get back to you and anyone else
that may want a little bit more better estimation on the timeline.
MR. KANUHA: Thanks, Aaron, I really appreciate that. Madam Chair, I yield.
ACTING CHR. EOFF: Thank you, Mr. Kanuha. Mr. Richards.
MR. RICHARDS: Mr. Brown, I just want to give a quick compliment. That's
the kind of report we were looking for, comprehensive. So, thank you very much.
I yield.
ACTING CHR. EOFF: Thank you. Any other comments, Council Members?
Can't see Hilo right now, so,just speak up. Ms. David.
MS. DAVID: Thank you, Chair. Mr. Brown, thank you for that report. I'm very
glad as is Mr. Kanuha to see the South Kona roads. As far as the Captain Cook
Fire Station road, I'm sure everyone knows how bad those are. So, I'm really
pleased that this is on the list, and I just want to thank Neil Azevedo and your
entire staff for their efforts during this difficult time. So, mahalo to the
department. Thank you, I yield.
ACTING CHR. EOFF: Thank you, Ms. David. Anybody else? Seeing none,
then all in favor of filing Communication 966, please say "aye."
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Hawaii County Council-42 June 19,2018
Vote on Comm. 966: The motion to close file on Comm. 966 was carried by the
Filed following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Order of Resolutions, Resolution 619.
Res. 619-18: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR
AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR LEASE
OF REAL PROPERTY FOR THE COUNTY OF HAWAII DEPARTMENT OF
PUBLIC WORKS
Authorizes the Mayor to enter into a multi-year lease agreement with an option
for two additional five-year terms with the Estate of Ole Eigel Jensen and
Elaine Marie Jensen, at a monthly cost of$700 to allow the Traffic Division the
continued occupancy of parking and storage space located at 81-6394 Hawaii
Belt Road, Kealakekua.
Reference: Comm. 944
Intr. by: Ms. David (B/R)
Approve: FC-122
Motion to Approve: Ms. David moved to adopt Res. 619-18 and Finance
Committee Report No. 122. Seconded by Mr. Kanuha.
ACTING CHR. EOFF: Any discussion?
MS. DAVID: Yes, this had a unanimous vote, so, I just ask for your continued
support.
ACTING CHR. EOFF: Okay, thank you. All in favor, please say "aye."
Vote on Res. 619-18: The motion to adopt Res. 619-18 and Finance Committee
(Adopted) Report No. 122 was carried by the following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
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Hawaii County Council-42 June 19,2018
ACTING CHR. EOFF: Moving to Resolution 624.
Res. 624-18: AUTHORIZES THE DEPARTMENT OF LIQUOR CONTROL TO INCREASE
THE GRANT AWARDED TO THE ARTS AND SCIENCE CENTER BY
$1,000 WITH PREVIOUSLY TRANSFERRED CONTINGENCY RELIEF
FUNDS FROM COUNCIL DISTRICT 4
The $3,000 grant award would be used for the Hawaii Academy of Arts and
Science Public Charter School's senior trip and graduation dinner.
Reference: Comm. 955
Intr. by: Ms. O'Hara
Motion to Approve: Ms. O'Hara moved to adopt Res. 624-18. Seconded by
Mr. Richards.
ACTING CHR. EOFF: Any discussion?
MS. O'HARA: I just wanted to explain that we had to shift money around.
Kea`au was unable to use their prom night expenditures, so, I have to, if we pass
this, I have to also consider waving Rule 15 because of a timeliness issue.
ACTING CHR. EOFF: I have a note of that we need to make a motion for that,
so, let's take a vote on Resolution 624. All in favor, please say "aye."
Vote on Res. 624-18: The motion to adopt Res. 624-18 was carried by the
(Adopted) the following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Ms. O'Hara, do you want to make that motion?
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Hawaii County Council-42 June 19,2018
Vote on Motion to Ms. O'Hara moved to Suspend Council Rule 15 to waive
Suspend Council the five-day hold for reconsideration. Seconded by
Rules: Mr. Richards and carried by the following voice vote:
(Approved)
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Resolution 625.
Res. 625-18: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A
DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A
DESIGNATED FUND ACCOUNT FOR THE POLICE DEPARTMENT'S
COMMUNITY POLICING UNIT IN COUNCIL DISTRICT 2
Transfers $900 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. 956
Intr. by: Mr. Chung
Motion to Approve: Mr. Chung moved to adopt Res. 625-18. Seconded by
Ms. O'Hara.
ACTING CHR. EOFF: Any discussion, Mr. Chung? I guess hearing no
discussion. Ms. O'Hara.
MS. O'HARA: Mr. Chung approached me about this CRF (Contingency Relief
Fund) request because he really was hoping to see some of this money go towards
Puna relief, and he has since called the Chief, I believe, Chief of Police and who
is in agreement that this should be spent in that manner. So, he will be turning
this money over to the Director of Finance who can write a grant or check to the
Bodacious Women, who are umbrellaed under the Food Bank or the Food Basket.
So, I just want the public to be aware that the police have agreed to this and we
really appreciate that as well as everyone else including the Finance Director. So,
I thank everybody for their willingness to direct this to a Puna relief.
ACTING CHR. EOFF: Okay, thank you for explaining. Any other questions or
comments? Seeing none, all in favor, please say "aye."
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Hawaii County Council-42 June 19,2018
Vote on Res. 625-18: The motion to adopt Res. 625-18 was carried by the
(Adopted) the following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Resolution 626.
Res. 626-18: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A
DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A
DESIGNATED FUND ACCOUNT TO ASSIST THE DEPARTMENT OF
PARKS AND RECREATION WITH EXPENSES RELATING TO MEAL
SERVICE FOR THE EVACUEES OF THE LAVA ERUPTION IN LOWER
PUNA
Transfers $1,550 from the Clerk-Council Services —Contingency Relief account
(Council District 9); and credits to the Department of Parks and Recreation,
Administration Other Current Expenses account.
Reference: Comm. 957
Intr. by: Mr. Richards
Motion to Approve: Mr. Richards moved to adopt Res. 626-18. Seconded by
Ms. David.
ACTING CHR. EOFF: Any discussion?
MR. RICHARDS: Yeah, I just ask for my colleagues' support. This is one of
those situations, I think just previous like Councilman Chung's initiative, what
we're trying to do is just help out Puna. I've been going down to Puna, on
average, once or twice a week since this eruption started. When this need came
forward, we still had a little bit of CRF left, so whatever we could put forth, so, I
ask for your support.
ACTING CHR. EOFF: Okay, thank you. Any other comments? Seeing none, all
in favor, please say "aye."
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Hawaii County Council-42 June 19,2018
Vote on Res. 626-18: The motion to adopt Res. 626-18 was carried by the
(Adopted) the following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Resolution 627.
Res. 627-18: AUTHORIZES THE ACCEPTANCE OF RESPIRATOR MASKS AND
CARTRIDGES FOR USE BY THE HAWAII POLICE DEPARTMENT
Donated by Queens Medical Center with a total estimated value of$12,212, this
donation would be used by police officers who are assigned to posts in the area of
the active lava zone in Lower Puna.
Reference: Comm. 961
Intr. by: Ms. David (B/R)
Waived: FC
Motion to Approve: Ms. David moved to adopt Res. 627-18. Seconded by
Mr. Kanuha.
ACTING CHR. EOFF: Any discussion?
MS. DAVID: Madam Chair?
ACTING CHR. EOFF: Ms. David.
MS. DAVID: I just would like to publicly thank Queen's Medical for this
donation for the Police Department, and that's all. I ask for your support.
ACTING CHR. EOFF: Thank you. All in favor,please say "aye."
Vote on Res. 627-18: The motion to adopt Res. 627-18 was carried by the
(Adopted) the following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
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Hawaii County Council-42 June 19,2018
ACTING CHR. EOFF: Resolution 628.
Res. 628-18: URGES THE HAWAII STATE LEGISLATURE TO CONVENE IN A
SPECIAL SESSION TO ADDRESS EMERGENCY FUNDING ASSISTANCE
FOR HAWAII COUNTY DUE TO THE IMPACTS OF THE ONGOING
DISASTER CAUSED BY VOLCANIC ERUPTIONS AND LAVA
INUNDATION OF HOMES, FARMS, AND BUSINESSES IN LOWER PUNA
The County has incurred substantial unanticipated costs, which include overtime
for County employees, road repairs, security, and providing shelter and basic
necessities for displaced residents; anticipates additional costs due to the unknown
duration of the eruption event; and will be faced with a revenue shortfall due to the
loss of taxable real property.
Reference: Comm. 962
Intr. by: Ms. O'Hara
Waived: GREDC
Motion to Approve: Ms. O'Hara moved to adopt Res. 628-18. Seconded by
Mr. Kanuha.
ACTING CHR. EOFF: Ms. O'Hara.
MS. O'HARA: I think the resolution in its wording is pretty self-explanatory.
We certainly hope that the Legislature will convene a special session. There's a
lot of work going on here at the County, and elsewhere with State
Representatives, and State agencies, and non-profit organizations, and various
community based organizations to come up with some plans for short-term
housing, long-term housing, so that we can respond to this disaster in a
meaningful and hopefully, timely manner. We're losing a lot of people in Puna
right now. As someone stated in earlier testimony, six businesses in Pahoa town
have already closed or have put out their notice that they'll be closing. These are
both retail and service businesses. The economic impact of this is being felt
throughout the island. It's being felt throughout the state to be honest, and I'm
hopeful that the legislation will convene in session and I'm hopeful that we'll
have a pretty good plan going forward.
I met with groups on Friday and we have taken that further in terms of breaking
into additional smaller work groups. I know Ms. Lee Loy was present at the
meeting as well as myself, and I'm working on agriculture and long-term housing,
I think this was the assignment I got with Senator Ruderman and April from
Planning. So, there is this effort to do that, and I hope we have a good plan by,
say, the earliest would be maybe the second week of July to be able to get the
State Legislature to convene and consider the proposals. I don't expect that
session to include other items like GE Tax or TAT, or anything else. I just expect
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Hawaii County Council-42 June 19,2018
it to be about addressing the situation with the lava inundation and the
interruption at Kilauea summit. I yield.
ACTING CHR. EOFF: Thank you, Ms. O'Hara. Any other comments?
Questions?
MS. LEE LOY: Chair?
ACTING CHR. EOFF: Is that Ms. Lee Loy? Go ahead.
MS. LEE LOY: Thank you, Chair. I'm going to be supporting this, obviously,
but I just wanted to expand a little bit about what Ms. O'Hara was speaking about.
Last Friday, we had a stakeholders meeting and we were able to identify areas of
critical paths to help with short, mid, and long-range housing, and just the overall
need for Puna. I just want to commend Ms. O'Hara, at this time, on how this
resolution really tries to put us in the best position. I just want to thank her.
There's a lot going on in Puna and to be forward thinking at a time where there's
so much uncertainty. Thank you. Thank you for thinking around the curve. If
we do get to a special session, I would wholeheartedly support Ms. O'Hara
championing that conversation to our legislators. Thank you, again, Ms. O'Hara.
I yield.
ACTING CHR. EOFF: Thank you. Any other comments? Hearing none, then
all in favor of Resolution 628, please say "aye."
Vote on Res. 628-18: The motion to adopt Res. 628-18 was carried by the
(Adopted) the following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Resolution 629.
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Hawaii County Council-42 June 19,2018
Res. 629-18: AUTHORIZES THE MAYOR TO ENTER INTO A MULTI-YEAR
CONTRACT FOR AN INTERGOVERNMENTAL AGREEMENT WITH THE
UNITED STATES DEPARTMENT OF TRANSPORTATION AND
MOKULELE FLIGHT SERVICE, INC., TO CONTINUE THE ESSENTIAL
AIR SERVICE SUBSIDY FOR THE WAIMEA-KOHALA AIRPORT
Grants the Mayor the authority, pursuant to Section 10-11 of the Hawaii County
Charter and Section 46-7 of the Hawaii Revised Statutes, to enter into a multi-
year cost-sharing agreement for this community transportation project.
Reference: Comm. 963
Intr. by: Mr. Richards
Waived: FC
Motion to Approve: Mr. Richards moved to adopt Res. 629-18. Seconded by
Mr. Kanuha.
ACTING CHR. EOFF: Any discussion? Mr. Richards.
MR. RICHARDS: We briefly discussed this in committee. Again, this is to
support keeping the subsidy for the Waimea airport. This allows the Mayor to
enter into a multi-year because we had to cross some fiscal year timelines. So,
that's why it says multi-year. I ask for your support.
ACTING CHR. EOFF: Okay, thank you.
MR. RICHARDS: One other thing, I will be asking for a waiver of Rule 15 for
this and for the next one as it is very time sensitive.
ACTING CHR. EOFF: Okay. Any further discussion? Seeing none, all in favor,
please say "aye."
Vote on Res. 629-18: The motion to adopt Res. 629-18 was carried by the
(Adopted) the following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Would you like to make the second one?
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Hawaii County Council-42 June 19,2018
Vote on Motion to Mr. Richards moved to Suspend Council Rule 15 to waive
Suspend Council the five-day hold for reconsideration. Seconded by
Rules: Mr. Kanuha and carried by the following voice vote:
(Approved)
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
MR. RICHARDS: I have a question for the clerk. Clerk, I meant to do that for
Resolution 626-18, that was the lunch bill. Is that something we can do at a
different time?
ACTING CHR. EOFF: We'll do that before we move on to the next one.
Mr. Richards.
Vote on Motion to Mr. Richards moved to Suspend Council Rule 15 to waive
Suspend Council the five-day hold for reconsideration. Seconded by
Rules (Res. 626-18): Mr. Kanuha and carried by the following voice vote:
(Approved)
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Okay, Resolution 630-18.
Res. 630-18: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A
DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A
DESIGNATED FUND ACCOUNT TO PROVIDE FUNDS TO THE
DEPARTMENT OF RESEARCH AND DEVELOPMENT FOR AN
INTERGOVERNMENTAL COST-SHARE AGREEMENT FOR THE
WAIMEA-KOHALA AIRPORT
Transfers $10,673 from the Clerk-Council Services —Contingency Relief account
(Council District 9); and credits to the Department of Research and Development,
Business Development account.
Reference: Comm. 964
Intr. by: Mr. Richards
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Hawaii County Council-42 June 19,2018
Motion to Approve: Mr. Richards moved to adopt Res. 630-18. Seconded by
Mr. Kanuha.
ACTING CHR. EOFF: Any discussion?
MR. RICHARDS: Yeah, this is the, I guess I'll call it the companion for 629.
The long and short of it, this is the funding to secure the combination of CRF
contingency funds from District 9, as well as donations from the community,
specifically the Waimea Community Association and the Kohala Coast Resort
Association, in conjunction with the Mayor's Office, to secure about $400,000
worth of subsidy to keep the Waimea airport open. And compliment goes out to
the community as well as Kohala Coast Resort Association, as they're doing this
as a support for their employees more than anything else. I do want to also thank
R&D and Corporation Counsel because without them, this is a little bit
challenging between State, County, and Federal to get the paperwork right. But
again, thanks Corporation Counsel, R&D, and Mayor's Office. I ask for your
support and I'll be asking to waive Rule 15.
ACTING CHR. EOFF: Okay, thank you. Any other comments? Seeing none, all
in favor, please say "aye."
Vote on Res. 630-18: The motion to adopt Res. 630-18 was carried by the
(Adopted) the following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Motion to waive the five-day holdover.
Vote on Motion to Mr. Richards moved to Suspend Council Rule 15 to waive
Suspend Council the five-day hold for reconsideration. Seconded by
Rules: Mr. Kanuha and carried by the following voice vote:
(Approved)
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Resolution 631.
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Hawaii County Council-42 June 19,2018
Res. 631-18: AUTHORIZES THE OFFICE OF THE MAYOR TO ENTER INTO AN
AGREEMENT WITH THE HAWAII TOURISM AUTHORITY, PURSUANT
TO HAWAII REVISED STATUTES SECTION 46-7, FOR A GRANT TO THE
DEPARTMENT OF RESEARCH AND DEVELOPMENT
Funds would be used by the department for its Ho`okaulike Signage Project,
which provides interpretive educational and safety information for global visitors
via Quick Response Code that will be added to signage at County parks, trails,
and beaches.
Reference: Comm. 965
Intr. by: Ms. David (B/R)
Waived: FC
Vote on Res. 631-18: Ms. David moved to adopt Res. 631-18. Seconded by
(Adopted) Mr. Kanuha and carried by the following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
Vote on Motion to Ms. David moved to Suspend Council Rule 15 to waive
Suspend Council the five-day hold for reconsideration. Seconded by
Rules: Mr. Kanuha and carried by the following voice vote:
(Approved)
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Okay, we're going to move to Bills for First Reading,
Bill 147.
BILLS FOR The Acting Chair directed the Council to proceed to the next order of business,
ORDINANCES Bills for Ordinances (First Reading).
(FIRST READING):
(There were none.)
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Hawaii County Council-42 June 19,2018
ORDER OF The Acting Chair directed the Council to proceed to the next order of business,
THE DAY Order of the Day (Second or Final Reading).
(SECOND OR
FINAL READING):
Bill 147: AMENDS SECTION 25-8-33 (CITY OF HILO ZONE MAP), ARTICLE 8,
CHAPTER 25 (ZONING) OF THE HAWAII COUNTY CODE 1983 (2016
EDITION, AS AMENDED), BY CHANGING THE DISTRICT
CLASSIFICATION FROM AGRICULTURAL—TWENTY ACRES (A-20a) TO
AGRICULTURAL—SIX ACRES (A-6a) AT KAUMANA HOMESTEADS,
KAUMANA AND PONAHAWAI, SOUTH HILO, HAWAII, COVERED BY
TAX MAP KEYS: 2-5-047:033 AND 2-5-047:034.
(Applicant: Kelly and Joanne Jarneski) (Area: 40 acres)
The Windward Planning Commission forwards its favorable recommendation for
this change of zone, which would allow the applicant to apply for a six-lot
subdivision on 40 acres of land located at the intersection of Kaumana Drive and
Akolea Road. Upon final subdivision approval, the applicant intends to continue
living in the existing dwelling and sell the remaining five lots.
Reference: Comm. 919
Intr. by: Ms. Eoff(B/R)
First Reading: June 5, 2018
Motion to Approve: Ms. David moved to pass Bill 147 on second and final
Reading. Seconded by Mr. Kanuha.
ACTING CHR. EOFF: Thank you. I know the applicant was here earlier and
had to leave, but I believe this has been favorable throughout the process thus far,
so, I would urge support. Okay, all in favor,please say "aye."
Vote on Bill 147: The motion to pass Bill 147 on second and final reading
(Adopted) was carried by the following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Bill 147 will move to second reading. I'm sorry, I
misstated that earlier. This was second reading, Bill 147 is adopted. Bill 153.
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Hawaii County Council-42 June 19,2018
Bill 153: INITIATES AN AMENDMENT TO ARTICLE XV OF THE HAWAII
COUNTY CHARTER (2016 EDITION), BY ADDING A NEW SECTION
RELATING TO FISCAL IMPACT STATEMENTS
Would require that any proposed amendment or revision to the Hawaii County
Charter be accompanied by a Fiscal Impact Statement that describes the
immediate and potential future effects the amendment or revision would have on
County revenues, expenditures, taxes, and fiscal liabilities. The Fiscal Impact
Statement must be prepared in a manner that is easily understood by voters and
would be placed on the County website and be made available for inclusion as
part of any voter information pamphlet that addresses County ballot propositions.
Reference: Comm. 938
Intr. by: Mr. Chung
First Reading: June 5, 2018
2/3 Vote: Second of three required readings,
Section 15-1(a), Hawai`i County
Charter
Vote on Bill 153: Mr. Chung moved to pass Bill 153 on second and final
(Adopted) reading. Seconded by Mr. Kanuha and carried by the
following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Bill 155.
Bill 155: AMENDS ORDINANCE NO. 17-39, AS AMENDED, THE OPERATING
BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR
ENDING JUNE 30, 2018
Increases revenues in the West Hawaii Ocean Safety account ($314,692); and
appropriates the same to the following West Hawaii Ocean Safety accounts:
Salaries and Wages ($164,692) and Equipment ($150,000), for a total
appropriation of$868,106. The additional revenues from the State are to offset
increases due to collective bargaining and other operational costs for Fiscal
Year 2017-2018.
Reference: Comm. 945
Intr. by: Ms. David (B/R)
First Reading: June 5, 2018
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Hawaii County Council-42 June 19,2018
Vote on Bill 155: Ms. David moved to pass Bill 155 on second and final
(Adopted) reading. Seconded by Mr. Kanuha and carried by the
following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: We have a request to waive. Ms. David.
Vote on Motion to Ms. David moved to Suspend Council Rule 15 to waive
Suspend Council the five-day hold for reconsideration. Seconded by
Rules: Mr. Kanuha and carried by the following voice vote:
(Approved)
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Bill 156. I guess we have to take a recess. We have
some kind of an alert here.
Recess: At 2:13 p.m., the Acting Chair called for a recess.
Reconvene: The meeting reconvened at 2:38 p.m.
ACTING CHR. EOFF: I would like to call the meeting back to order. We were
on Bill 156. Mr. Clerk, can you read that?
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Hawaii County Council-42 June 19,2018
Bill 156: AMENDS ORDINANCE NO. 17-39, AS AMENDED, THE OPERATING
BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR
ENDING JUNE 30, 2018
Increases revenues in the State Emergency Medical Services account ($563,436);
and appropriates the same to the Fire Emergency Medical Services - Salaries and
Wages account, for a total appropriation of$11,427,955. The additional revenues
from the State are to offset the cost of increases due to collective bargaining for
Fiscal Year 2017-2018.
Reference: Comm. 946
Intr. by: Ms. David (B/R)
First Reading: June 5, 2018
Vote on Bill 156: Ms. David moved to pass Bill 156 on second and final
(Adopted) reading. Seconded by Mr. Richards and carried by the
following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Bill 157.
MS. DAVID: Excuse me, Madam Chair?
ACTING CHR. EOFF: Ms. David.
ACTING CHR. EOFF: Move to waive the five-day reconsideration holdover on
156 please.
Vote on Motion to Ms. David moved to Suspend Council Rule 15 to waive
Suspend Council the five-day hold for reconsideration. Seconded by
Rules: Mr. Richards and carried by the following voice vote:
(Approved)
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Now, Bill 157.
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Hawaii County Council-42 June 19,2018
Bill 157: AMENDS ORDINANCE NO. 17-39, AS AMENDED, THE OPERATING
BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR
ENDING JUNE 30, 2018
Increases revenues in the Commercial Driver's License Program Income account
($15,563.90); and appropriates the same to the Commercial Driver's License
Program Salaries and Wages account, for a total appropriation of$345,545.90.
The additional revenues from the State are to offset the cost of salary increases.
Reference: Comm. 947
Intr. by: Ms. David (B/R)
First Reading: June 5, 2018
Vote on Bill 157: Ms. David moved to pass Bill 157 on second and final
(Adopted) reading. Seconded by Mr. Kanuha and carried by the
following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Ms. David, did you want to make a motion?
Vote on Motion to Ms. David moved to Suspend Council Rule 15 to waive
Suspend Council the five-day hold for reconsideration. Seconded by
Rules: Mr. Richards and carried by the following voice vote:
(Approved)
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Bill 158.
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Hawaii County Council-42 June 19,2018
Bill 158: AMENDS ORDINANCE NO. 17-39, AS AMENDED, THE OPERATING
BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR
ENDING JUNE 30, 2018
Increases revenues in the Federal Grants —Substance Abuse Prevention
Coordinator account ($15,000); and appropriates the same to the Substance Abuse
Prevention Coordinator account, for a total appropriation of$125,000. Funds
would be used by the Office of the Prosecuting Attorney to facilitate a two-day
training focused on preventing underage drinking and prescription drug use in
Hawaii County.
Reference: Comm. 949
Intr. by: Ms. David (B/R)
First Reading: June 5, 2018
Vote on Bill 158: Ms. David moved to pass Bill 158 on second and final
(Adopted) reading. Seconded by Mr. Richards and carried by the
following voice vote:
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Ms. David, motion.
Vote on Motion to Ms. David moved to Suspend Council Rule 15 to waive
Suspend Council the five-day hold for reconsideration. Seconded by
Rules: Mr. Kanuha and carried by the following voice vote:
(Approved)
Ayes: Council Members Chung, David, Kanuha,
Lee Loy, O'Hara, Poindexter, Richards,
Ruggles, and Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: Mr. Clerk, I think that brings us to the end of our agenda.
May I have a motion to adjourn?
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Hawai`i County Council-42 June 19,2018
REFERRALS FOR The Acting Chair directed the Council to proceed to the next order of business,
EXECUTIVE Referrals for Executive Session.
SESSION:
(There were none.)
OTHER The Acting Chair directed the Council to proceed to the next order of business,
BUSINESS: Other Business.
(There was none.)
ANNOUNCE- The Acting Chair directed the Council to proceed to the next order of business,
MENTS: Announcements.
(There were none.)
ADJOURN- There being no further business, at 2:43 p.m., Ms. David moved to adjourn the
MENT: meeting. Seconded by Mr. Richards and carried by the following voice vote:
Ayes: Council Members Chung, David, Kanuha, Lee Loy,
O'Hara, Poindexter, Richards, Ruggles and
Acting Chair Eoff—9.
Noes: None.
Absent: None.
Excused: None.
ACTING CHR. EOFF: This meeting's adjourned. Thank you.
Council Approval: JUL 2 5 2018
N I
CO T LERK
SM/jm
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