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HomeMy WebLinkAboutMIN COUNCIL 2018-06-29 2016-2018 Hawaii County Council Special Session 43rd Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii June 29, 2018 INVOCATION: Deacon Leroy Andrews of the Immaculate Heart of Mary Parish Church gave the morning's invocation. CALL TO The special meeting of the Hawaii County Council was called to order at ORDER: 10:07 a.m., in the Council Chambers, Hilo, by Ms. Valerie T. Poindexter, Chair. ROLL CALL: Present: Ms. Valerie T. Poindexter, Chair Ms. Karen Eoff, Vice Chair Mr. Aaron S. Y. Chung, Member Ms. Maile Medeiros David, Member Mr. Dru Mamo Kanuha, Member Ms. Susan L. K. Lee Loy, Member Ms. Eileen O'Hara, Member Mr. Herbert M. "Tim" Richards, III, Member Ms. Jennifer Ruggles, Member PLEDGE OF The Chair directed the Council to the next order of business, Pledge of Allegiance. ALLEGIANCE: (At this time, Mr. Kanuha led the Council in the Pledge of Allegiance.) STATEMENTS The Chair directed the Council to proceed to the next order of business, Statements FROM THE from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: The following individuals registered to speak and came forward when called by the Chair: Margaret Wille: Bill 159, Draft 2 (Comm. 958.4), comment. Emily Naeole: Comm. 971, in support; and Bill 159, Draft 2 (Comm. 958.4), in support. Hawaii County Council-43 June 29,2018 Nan Sumner-Mack: Bill 159, Draft 2 (Comm. 958.4), in opposition. Floyd Eaglin: Bill 159, Draft 2 (Comm. 958.4), in opposition. Craig Severance: Bill 159, Draft 2 (Comm. 958.4), in support. Abolghassem Abraham Bill 159, Draft 2 (Comm. 958.4), comment. Sadegh: Carol R. Ignacio: Bill 159, Draft 2 (Comm. 958.4), in support. Val Colter: Bill 159, Draft 2 (Comm. 958.4), comment. Dennis Blinn: Bill 159, Draft 2 (Comm. 958.4), in opposition. Recess: At 10:40 a.m., the Chair called for a recess. Reconvene: The meeting reconvened at 10:44 a.m. COMMUNI- The Chair directed the Council to proceed to the next order of business, CATIONS: Communications. Comm. 971: NOMINATIONS TO THE 2018 CHARTER COMMISSION From Mayor Harry Kim, dated June 22, 2018, submitting the following individuals, pursuant to Hawaii Revised Statutes, Section 50-3: Douglass Shipman Adams (Hilo); William Carthage Bergin (Kohala); Michelle Galimba(Ka`u); Paul K. Hamano (Hilo); Kevin D. Hopkins (Hilo); Bobby Jean Akane Leithead Todd(Hilo); Sarah H. Rice (Kona); Christopher John Imiloa Roehrig (Hamakua); Marcia A. K. Saquing (Hilo); Donna Mae Springer (Puna); and Jennifer Leilani Zelko-Schlueter (Hilo). Motion to Approve: Mr. Richards moved to approve the nominations contained in Comm. 971. Seconded by Ms. David. CHR. POINDEXTER: At this time, we'd like to take out of order, third down from the list, Michelle Galimba, who is joining us by—we can't see her but we'll be able to hear her. So, Mr. Kauka, please introduce your first nominee. Page 2 Hawaii County Council-43 June 29,2018 (Note: At this time, Executive Assistant Aide Dennis Kauka of the Mayor's Office came forward to address the members of the Council.) MR. KAUKA: Good morning, Chair Poindexter and Vice Chair Eoff, Council Members. We wanted to first express our appreciation for holding this special meeting to hear the nominees today, and we're really proud of the 11 fine citizens that we were able to assemble. Rose Bautista, she wanted me to mentionsorry, she had to step out—she normally does the boards and commissions. And we're going to spare the Mayor's voice for a bit; he has a bit of a scratchy throat. So, thanks again. And we're really happy that Ms. Galimba offered to be available to you by phone. So, I'll do a brief introduction. Michelle Galimba, from Ka`u, is owner and ranch manager of Kuahiwi Contractors. She serves on the State Board of Agriculture as chair of the 4-H Livestock Association and director of the Hawaii Ag Leadership Foundation. Thank you, Ms. Galimba. CHR. POINDEXTER: Okay, Ms. Galimba, do you want to say a few words? (Note: At this time, nominee Michelle Galimba addressed the Council Members via phone tie-in.) MS. GALIMBA: Oh, hi there. Aloha. I wanted to say thank you for the opportunity to serve on the Charter Commission, and I apologize that I can't be there today but I had to go to the Mainland for some meetings. I'm available for any questions anybody might have. CHR. POINDEXTER: Thank you. Okay, so we'll open it up to the Council. Council Member David. MS. DAVID: Yes, mahalo, Chair Poindexter. Aloha, Ms. Galimba, and thank you so much for making yourself available by telephone today. I just wanted to express to my Council Members and the people here that I have been a witness to your community service. I am very impressed on your work with the Ka`u CDP (Community Development Plan) for those seven to nine years of community advocacy, and I can't think of anyone that I would support more than you on this Charter Commission. I believe this is such an important commission, and I'm so grateful that you have taken the time especially spending seven years on one solid issue for the District of Ka`u. So, there's no question I support your nomination, and I ask for my colleagues' support. Mahalo. CHR. POINDEXTER: Instead of waiting for after, can I just have the motion to approve Michelle Galimba to the Charter Commission? Page 3 Hawaii County Council-43 June 29,2018 Motion to Approve: Ms. David moved to confirm the appointment of Ms. Michelle Galimba to the Charter Commission. Seconded by Mr. Kanuha. CHR. POINDEXTER: So, we can continue on. Council Member Richards. MR. RICHARDS: Are we going to be speaking on behalf of the individuals at this time or we'll wait till pau? CHR. POINDEXTER: You can speak on behalf of the individuals `cause we have to vote them in one by one. MR. RICHARDS: Okay. If that's the case, then, let me just say a few words about Michelle. Michelle and I have known each other for quite a few years, and the older you get the less number of years you want to admit to. But that being said, I've known and worked with Michelle in the cattle industry for several decades, and let's leave it at that. And her organizational skills, her thoughtfulness, her experience, kama`aina, this commission is setting up to be a phenomenal thing and I heartily support her nomination and I encourage the rest of the Council to do as well. Thank you. CHR. POINDEXTER: Thank you. Council Member Kanuha. MR. KANUHA: Thank you, Madam Chair, and I also support Ms. Galimba's nomination. I think she'd be an excellent—she's an excellent candidate for this commission, truly represents the community of Ka`u. I know that you do so much in the community and throughout the State with your community service. I just want to make sure you have the time to do this Charter Commission. I know you'll make the time and really represent the community in your best capacity but I justMichelle, you're there to dedicate your full commitment to this commission? MS. GALIMBA: Thanks, Mr. Kanuha. I just would really hope that it doesn't take seven to nine years. I think I can do a year. Isn't that what we are supposed to be doing? MR. KANUHA: Thank you. I fully support your nomination, and I know you'll do well on this commission. So, mahalo, Madam Chair. CHR. POINDEXTER: Thank you. Any other discussion? Seeing or hearing none, all those in favor of approving Ms. Galimba's nomination to the Charter Commission say "aye." Page 4 Hawaii County Council-43 June 29,2018 Vote on The motion to confirm the appointment of Ms. Michelle Ms. Galimba's Galimba to the Charter Commission was carried by the Appointment: following voice vote: (Approved) Ayes: Council Members Chung, David, Eoff, Kanuha, Lee Loy, O'Hara, Richards, and Chair Poindexter—8. Noes: None. Absent: Council Member Ruggles — 1. Excused: None. CHR. POINDEXTER: Thank you, Ms. Galimba. MS. GALIMBA: Thank you. Motion to Approve: Ms. Lee Loy moved to confirm the appointment of Mr. Douglass Shipman Adams to the Charter Commission. Seconded by Ms. Eoff (Note: At this time, nominee Douglass Shipman Adams came forward to address the members of the Council.) CHR. POINDEXTER: Go ahead, Mr. Kauka. MR. KAUKA: Thank you, Chair. Douglass Shipman Adams is the board vice chair at W. H. Shipman Limited, an attorney, and was a member of the Army for 20 years. Mr. Adams previously served on the County Board of Ethics and is board president of the Kuikahi Mediation Center. We're also very pleased that Mr. Adams has agreed to serve as chair on the commission. CHR. POINDEXTER: Thank you. Mr. Adams, do you want to say a few words? MR. ADAMS: Thank you, Chair Poindexter, and obviously all our friends on the Council. First of all, I'd just like to thank the Mayor and the Mayor's team for the opportunity to serve this County in this particular way. It's also an honor here to serve with what I hope will become a very cohesive team on this commission. That'll be important for our work. There's no questioning the talent that has been assembled by the Mayor's team that you'll be voting on to support. And my job as I see it will be to make sure that we do the best that we can in support of the residents of this County for this very important mission. I'd just like to end with a couple of quotes. One is the French writer Antoine de Saint-Exupery: "If you want to build a boat, don't begin by collecting wood, cutting boards, or assigning tasks. Begin by awakening in the souls of your workers a longing for the vast and boundless sea." For us, that'll be about the Page 5 Hawaii County Council-43 June 29,2018 County, where the County is going. As we get into the nitty and the gritty, which will be part of it, we'll maintain that sense of the vast and balanced sea, I hope, as we think about the work that we have in front of us. The second is a quote from a Hawaiian hero, Ellison Onizuka: "Every generation has the obligation to free humans' minds for a look at new worlds, to look out from a higher plateau than the last generation. Your vision is not limited by what your eye can see but what your mind can imagine. If you accept these past accomplishments as commonplace then think of the new horizons that you can explore to make your life count and the world will be a better place because you tried." I think the members of this commission exemplify that, reflect that, and hopefully our work will be the same. Thank you. CHR. POINDEXTER: Thank you. Open it up to the Council Members. Council Member Lee Loy. MS. LEE LOY: Thank you, Chair. Thank you, Mr. Adams, for stepping up and serving. I absolutely agree, the Mayor has assembled an all-star team in my humble opinion. But what I find incredibly exciting is to learn that you will be the chair. And from personal experience, your calming and leveling influence in tough situations I have modeled. And so, I really want to appreciate you and what you're bringing to the table as far as being the chair for this Charter Commission. I'm really excited to see what you folks will be bringing forth. Thank you so much, and thank you for serving. CHR. POINDEXTER: Thank you. Council Member O'Hara. MS. O'HARA: Thank you, Chair. I just want to echo that. I'm really pleased that you stepped up, Doug, and are taking a leadership role in this commission. This is such an important commission. I know that the job you do takes a very short time; I believe you're appointed for just about a year. But the work you do is incredibly important as to the future of this County, and I can't think of a better person to be in that role. So, thank you. CHR. POINDEXTER: Thank you. Council Member Richards. MR. RICHARDS: Thank you, Chair. And again, I will echo as well. I've not known you as long as some others, but in my workings with you and with your background and the fact that you're chairing, I'm stoked. So, I appreciate that and I appreciate you committing to this `cause I think we are setting the stage not for the next couple years but for the next couple decades. So, thanks for your efforts. CHR. POINDEXTER: Thank you. Council Member Kanuha. Page 6 Hawaii County Council-43 June 29,2018 MR. KANUHA: Thank you, Madam Chair. I also support your nomination. I had a question on procedure. In speaking about the entire commission as a whole, do we do this now or ? I mean, I wanted to do it in the beginning but I completely forgot to do that since we were speaking on behalf of Ms. Galimba. CHR. POINDEXTER: I guess we can have that at the very end; we can open it up for just some overall discussion on the entire commission. But we're taking one at a time now. Is that okay? MR. KANUHA: The reason being, Madam Chair, I just wanted to ask about the commission as a whole and will it truly represent the entire island. That's the question. Even though I'm going to be voting for each and every one of you, because I think this is going to be a great commission, I just wanted to put it out there that we have three members on this commission representing the entire west side of the island. CHR. POINDEXTER: So maybe, is it okay if I ask Mr. Kauka if he could step back and have our Mayor come forward to answer these questions? Is it okay? Yeah? Or if you'd like to appoint for Mr. Kauka to finish or our Corp. Counsel Joe Kamelamela, that's fine also. (Note: At this time, Mayor Harry Kim came forward to address the members of the Council.) MR. KANUHA: Thank you, Madam Chair. Sorry, I was trying to do that in the beginning but I just was trying to wonder about procedure-wise. If I may ask Mayor Kim of the Administration, we have 11 members on the commission, Mayor. Three of them are representing the entire west side of the island. So, there's eight members representing the entire east side. Just making sure that this is appropriate in terms of representation for the entire island and if you feel that these members will truly put forward their best efforts in the representation that I look for and the community looks for. MR. KIM: First of all, I think all of you had indicated or stated how important this commission is and, as Mr. Richards said, for the next couple of decades, maybe even more. We realize that in the selection of nominees to present to this Council. But I think if you look at the—first of all, forget the districts that they come from. I think you'll all agree that these are very outstanding citizens. I assure you that none of them were initially identified because of, basically, party or where they live. That is the type of person that they were. Because he's sitting at my right, I'll just pick on him. It identifies him as "Hilo," but we all know where he works, in Puna. And we know of his 20 years in the military experience. I think if you go down the list like that, you're going to find a very outstanding group of people. I say with the greatest of confidence to all of Page 7 Hawaii County Council-43 June 29,2018 you, they will represent this island. If they were heavily involved, I think, in their work because of politics or certain kinds of positions that reflected only the community, I don't think they would be presented to you. MR. KANUHA: Thank you, Mayor. I really appreciate that. That's what I really wanted to hear, and I know a lot of these individuals and I truly know that they will represent the entire island. I needed that confidence from the Administration that these individuals came forward knowing full well the commitment that they're going to have for this Charter Commission and that these boundaries, there are no boundaries, that they truly will represent this entire island. So, thank you so much. MR. KIM: Thank you for the question because that is a very important thing that they do represent the island. As you know, the Charter is for the whole island, obviously, and we can't bring forth people to you that are known because of past work to be very prejudicial to what's only in their district. And I assure you that they're not. Thank you. CHR. POINDEXTER: Thank you. Mayor, if you can just stay there. If any of the Council Members have anything for the Mayor first before I ? MS. EOFF: I don't have a question. CHR. POINDEXTER: But you want to comment? Is that okay, Council Member Chung? Okay. Council Member Eoff MS. EOFF: I just wanted to comment that I think there is a very formidable slate here. And I have some experience having staffed the last Charter Commission. But for the Charter, we are required to have one member from each judicial district, which we do, and then there's—that would be six. Six are required to be from different judicial districts and then the five at-large can come from anywhere. I know it is difficult to find enough people that have all the right requirements, not only their willingness but their backgrounds and then they can't be, certainly, from one political party. So, there was a lot of constraints. So, I actually think you put together a good diverse group that will do a great job. There are thinkers. There are people from different backgrounds. There are long-time kama`aina and some newer people, and there are balanced genders. So, it's a difficult task to get this list together. So, I'm going to say that I think it meets the requirements of the Charter. MR. KIM: Thank you and you know that we pay them a lot. MS. EOFF: Yeah. Page 8 Hawaii County Council-43 June 29,2018 CHR. POINDEXTER: Thank you. So now, we'll go back to the discussion for Mr. Adams. Council Member Chung. MR. CHUNG: Thank you. I really just want to speak on behalf of Mr. Adams, but I want to briefly address the issue. I agree with Mayor Kim wholeheartedly. Really, when you talk about the Charter Commission, as long as you're in compliance with what is provided for in the Charter and picking at least one person from each of the six geographical areas of the island, which they have done, and you're in compliance. After that, though, you really just should look at the character of the individuals. And I think the slate of individuals which the Administration has assembled is solid. Now, getting back to Mr. Adams. It seems that every time he is introduced to us, I learn something new about him and I had never realized that he was a part of the Shipman family today until this came up. But one thing I do know about him from all of these years of working with him and his wife, Deb Lewis, who is equally as dynamic, he and she are just so wonderful contributors to our community. He's a member of my district, and I'm just so proud that he is living in District 2. These guys are just dynamic. I'm just stoked that you're going to be the chairperson. There were several other people in this group who could equally have fit that bill, as you well know. Thank you very much for stepping up, Doug. I really appreciate it. CHR. POINDEXTER: Thank you. Any other discussion? Council Member David. MS. DAVID: Thank you. I just wanted to make a note that thank you, Mr. Kanuha, for raising that issue and, Mayor, for explaining that because I think at first glance people will be looking at the makeup of this Charter Commission in that sense. So, I'm glad it's on the record that all of these highly qualified people, which I know some for a long time too, that they do have this island's best interest at heart and that we are not doing things based on an east-west mentality. And I think we need to continue our joint advocacy for what's best for this island. So, thank you, Mayor, for clarifying that and, Mr. Kanuha, for raising that question. Mahalo. CHR. POINDEXTER: Any other discussion? Council Member Eof£ MS. EOFF: I forgot to say thank you to Doug Adams for stepping up and for being appointed the chair of this commission. I think you will do a wonderful job. Thank you. CHR. POINDEXTER: Thank you. Okay, all those in favor of approving the nomination of Douglass Shipman Adams to the Charter Commission say "aye." Page 9 Hawaii County Council-43 June 29,2018 Vote on Mr. Adams' The motion to confirm the appointment of Mr. Douglass Appointment: Shipman Adams to the Charter Commission was carried by (Approved) the following voice vote: Ayes: Council Members Chung, David, Eoff, Kanuha, Lee Loy, O'Hara, Richards, Ruggles, and Chair Poindexter—9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Your nomination is approved. Motion to Approve: Mr. Richards moved to confirm the appointment of Mr. William Carthage Bergin to the Charter Commission. Seconded by Mr. Kanuha. (Note: At this time, nominee William Carthage Bergin came forward to address the members of the Council.) CHR. POINDEXTER: Mr. Kauka, please introduce the nominee. MR. KAUKA: Thank you. Council Members, William Carthage Bergin from Waimea is a retired veterinarian and lifelong resident of Hawaii. He attended Kansas State University and was president of the Rotary Club of North Hawaii. CHR. POINDEXTER: Okay, Mr. Bergin, would you like to say a few words? If you can turn on your mic right at the base. Yeah. Thank you. MR. BERGIN: This is high tech. Happy to serve in any capacity in which I can be of service to the County. Thank you. CHR. POINDEXTER: Thank you. Council Member Richards. MR. RICHARDS: Oh, yeah. Okay, first of all, I have known Dr. Bergin my entire life and I will consider Billy a very close and dear friend. He is one of my mentors. He is one of my educators. We were partners, but more importantly, we are very good friends. He is more humble than he really should be. He is an island treasure as far as the history of the paniolo, and truly keiki o ka `aina, born Laupahoehoe. His dad was a plantation doctor. I think it's very fitting that Mr. Kauka is sitting at the table because Dr. Bergin "kauka" means doctor in Hawaiian. My entire life growing up, I knew Dr. Bergin as "Kauka." So, I cannot say enough. Page 10 Hawaii County Council-43 June 29,2018 Some of the comments about being concerned about the County as a whole, this is embodied in Dr. Bergin. And so, he will bring forth the mana`o that we need, the temperance that we will undoubtedly need going forward with this, and a longstanding deep knowledge. Dr. Bergin taught me to learn the history and learn the people from the different regions. I've embraced that and I've been more successful because of that advice. So, I cannot endorse Dr. Bergin enough. This is—and, Mayor, you have put together an all-star team, I will tell you what. So again, I am unconditionally supporting Dr. Bergin. CHR. POINDEXTER: Thank you. Council Member David. MS. DAVID: Yes. Ditto Mr. Richards. Dr. Bergin has been a family name in at least my family also—not as long as Mr. Richards, though, `cause I'm younger butI'm just joking, come onI'm speaking about my family who have been in the ranching business for several generations also. I remember seeing you at every rodeo when I was a kid growing up, and you were just always so fair and helpful. I couldn't understand that the rodeo had a doctor—you know what I mean?—'cause I was young. But your presence has always been there even if you weren't there. My family speaks very highly of you. Most of them all passed away. The cowboys have all gone. I think my dad is the only one that's living in my family. So, I appreciate everything that you've done for our family in the ranching industry. So, I respect you and I really support your nomination, and I think you'll add such a great perspective to this Charter Commission. After all, you guys are going to develop laws that will keep us in line for the next few decades, as Mr. Richards said. Thank you very much for serving. MR. BERGIN: Thank you. CHR. POINDEXTER: Thank you. Any other discussion? Seeing or hearing none, all those in favor of approving Dr. William Carthage Bergin to the Charter Commission say "aye." Vote on The motion to confirm the appointment of Mr. William Mr. Bergin's Carthage Bergin to the Charter Commission was carried by Appointment: the following voice vote: (Approved) Ayes: Council Members Chung, David, Eoff, Kanuha, Lee Loy, O'Hara, Richards, Ruggles, and Chair Poindexter–9. Noes: None. Absent: None. Excused: None. Page 11 Hawaii County Council-43 June 29,2018 CHR. POINDEXTER: Your nomination is approved. Thank you. Motion to Approve: Ms. Lee Loy moved to confirm the appointment of Mr. Paul K. Hamano to the Charter Commission. Seconded by Mr. Richards. (Note: At this time, nominee Paul K. Hamano came forward to address the members of the Council.) CHR. POINDEXTER: Mr. Kauka, please introduce the nominee. MR. KAUKA: Thank you. Paul K. Hamano is the husband of Reiko Hamano. I had to do that, I'm sorry, `cause we all love Reiko. But aside from being Reiko's husband, he's a private practice attorney and past chair of E. B. de Silva Elementary School Community Council. He has his undergraduate degree in political science from UH Manoa(University of Hawaii at Manoa) and a Juris Doctor from UC Davis (University of California, Davis). CHR. POINDEXTER: Thank you. Mr. Hamano, do you want to say a few words? MR. HAMANO: Thank you, Chairperson Poindexter, members of the Council. It's a privilege to be before you. Thank you for your consideration, and I am open to your questions. CHR. POINDEXTER: Any—okay, Council Member Chung. MR. CHUNG: First of all, I really like the way Dennis introduces all of these nominees. Thank you very much, Dennis. I wanted to speak on behalf of Paul. He is a member of the legal community and a very well respected one at that. I don't think, well, maybe the commission members with whom he will be working with can expect him to be kind of like a quiet but calming influence on the board. He's not a real talkative guy, but whatever he says is going to make sense. I do know that. He's a thoughtful individual, and he's going to be a very good component to this board. But, congratulations, Mr. Hamano. CHR. POINDEXTER: Thank you. Council Member Lee Loy. MS. LEE LOY: Thank you, Chair. Yes, I'm going to be speaking in favor of this. But like Mr. Chung, we all love Reiko. But I, too, have worked in a legal field and had the privilege, actually, of seeing your name at the top half of some of those pleadings and always, when I saw your name, thought "Okay, I can read this. It'll be fair and thoughtful and direct." And that's what you're going to be Page 12 Hawaii County Council-43 June 29,2018 bringing to this commission. I really appreciate that `cause there'll be some very robust conversations, I'm sure, but being fair and objective and that voice will be much needed in this dynamic group. So, thank you very much for serving. CHR. POINDEXTER: Thank you. Any other discussion? Seeing or hearing none, all those in favor of approving Paul K. Hamano to the Charter Commission say "aye." Vote on The motion to confirm the appointment of Mr. Paul K. Mr. Hamano's Hamano to the Charter Commission was carried by the Appointment: following voice vote: (Approved) Ayes: Council Members Chung, David, Eoff, Kanuha, Lee Loy, O'Hara, Richards, Ruggles, and Chair Poindexter—9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Your nomination has been approved. Thank you. Motion to Approve: Ms. O'Hara moved to confirm the appointment of Mr. Kevin D. Hopkins to the Charter Commission. Seconded by Mr. Richards. (Note: At this time, nominee Kevin D. Hopkins came forward to address the members of the Council.) CHR. POINDEXTER: Mr. Kauka, please introduce your nominee. MR. KAUKA: Thank you. Keven D. Hopkins has been a professor at UH Hilo (University of Hawaii at Hilo) for 30 years. He spent three years with the U.S. Peace Corps (United States Peace Corps) and served as past president of the Rotary Club of Hilo. Mr. Hopkins' education background is in business administration, zoology, fisheries, and aquaculture. Thank you. CHR. POINDEXTER: Mr. Hopkins? MR. HOPKINS: Thank you. I'd better make a correction before my rotary club; I'm the past president of Hilo Bay. I am very honored to have been nominated to this commission. What we are going to be doing will be having, I could say, effects for probably the next few decades. And in relation to your other ones, thinking in terms of a district here, it's not very useful because we really don't Page 13 Hawaii County Council-43 June 29,2018 know what the island is going to be over the next 30 years. We are all going to be changing. So, we have to think about the entire island, and I will do my best to do that and I look forward to working with this group of people. As I just mentioned over there, I sort of feel like I'm the new man on the block because most of the people on the commission have been here for, some of their families for generations and I've only been here for 30 years. So again, thank you very much to the Mayor for nominating me, and I look forward to working on the commission. CHR. POINDEXTER: Thank you. Council Members? Council Member Richards. MR. RICHARDS: I'll just quickly offer my support for Mr. Hopkins. I'm curious that Mr. Kauka did not introduce him as "Mr. Dayday." But that being said and all kidding aside, I've known Mr. Hopkins for some time now, and again the balance and the thoughtfulness coming to this commission is outstanding. I'll be supporting him. CHR. POINDEXTER: Thank you. Any other discussion? Council Member O'Hara. MS. O'HARA: Thank you, Chair, and thank you, Kevin and Dr. Hopkins, for stepping up. You're going to provide a whole perspective to this Charter Commission, that I think might have been lacking, because of your strong academic background and the wayI worked with Dr. Hopkins so I know how analytic he is in his approaches. So, I think this will be beneficial to the Charter Commission. Thank you for stepping up. CHR. POINDEXTER: Thank you. Any other discussion? Seeing or hearing none, all those in favor of approving Kevin D. Hopkins to the Charter Commission say "aye." Vote on The motion to confirm the appointment of Mr. Kevin D. Mr. Hopkins' Hopkins to the Charter Commission was carried by the Appointment: following voice vote: (Approved) Ayes: Council Members Chung, David, Eoff, Kanuha, Lee Loy, O'Hara, Richards, Ruggles, and Chair Poindexter—9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Your nomination has been approved. Thank you. Page 14 Hawaii County Council-43 June 29,2018 Motion to Approve: Mr. Kanuha moved to confirm the appointment of Ms. Bobby Jean Akane Leithead Todd to the Charter Commission. Seconded by Ms. David. (Note: At this time, nominee Bobby Jean Akane Leithead Todd came forward to address the members of the Council.) CHR. POINDEXTER: Mr. Kauka, please introduce your nominee. MR. KAUKA: Thank you. Bobby Jean—Bobby Jean, help me out here Akane? MS. LEITHEAD TODD: Akane. MR. KAUKA: Akane Leithead Todd is retired after a 20-plus-year career with the County government in various roles, including as a former Council Member. She's been on the board of the American Cancer Society and Hospice of Hilo and served as president of the Hilo High School PTSA (Parent, Teacher, Student Association). CHR. POINDEXTER: Okay, Ms. Leithead Todd. MS. LEITHEAD TODD: Aloha and thank you for this opportunity. Thank you to the Mayor for nominating me. I just wanted to make a brief statement to some extent in response to Council Member Kanuha's concerns. I grew up in a family that the whole island was our home. There's my great-grandfather who was a ranch foreman for the Robert Hind Ranch in Kohala. My father is a schoolteacher. They used to rotate the teachers around. So, he lived in Papa, Kona; in Kawaihae; Kapa`ahu; Kukuihaele; Papa`ikou; Kaumana; and then finished his career down in Keaukaha. We had a home in Volcano from 1935 to 1980. We lived in Hilo until we sold our Hilo home, and then lived full-time in Volcano until I went away to school on Oahu. But there's no place you can go—they talk about six degrees of separation. Well, on this island it's like one because as soon as you start talking, you find out either you're related or you know their brother or their sister, and those are some of the things that I love about this island. I think that this is an opportunity to look at governance, to look at what directions we want the structure of our government to be. But I'm very appreciative, again, of the opportunity to serve. Thank you very much. CHR. POINDEXTER: Thank you. Any Council Members? Council Member Lee Loy. Page 15 Hawaii County Council-43 June 29,2018 MS. LEE LOY: Thank you, Chair. Ms. Leithead Todd has a phenomenal resume, and I just want to take the opportunity to tell her thank you. She's been a great mentor and really my inspiration for the reason I sit in this chair right now. So, thank you. Thank you for serving. Thank you for stepping up. CHR. POINDEXTER: Council Member O'Hara. MS. O'HARA: Thank you, Chair, and thank you, Ms. Leithead Todd for stepping up. This is a great commission for you with your background, your expertise. I think you've covered every branch of government here at the County and nearly every department. I had the pleasure of working with Bobby Jean here at the County. Truly, your breadth of experience, your knowledge, your legal background is going to be such an advantage to this commission. So, thank you for serving. CHR. POINDEXTER: Council Member Chung. MR. CHUNG: Really, Bobby needs no introduction. Her contributions to the community at large have been tremendous: Administration, Council, attorney no offense. She's just a topnotch individual, and she's going to be super special on this commission. I'm really glad you're on, and I support you. CHR. POINDEXTER: Thank you. Council Member Richards. MR. RICHARDS: I won't waste time by re-echoing everything, so ditto. I've worked with you for years, and you bring a lot to the commission. Again, Mayor, thank you. This is outstanding. I yield. CHR. POINDEXTER: Thank you. Council Member David. MS. DAVID: Yes. Aloha, Bobby Jean. I really want to thank you for serving. For all the years that I've known you for, worked with you, having that privilege, you're just so highly qualified for this. But what I really wanted to say to you of what I think is a real plus in addition to your over qualification is that, on this commission, you will just be able to bring our native perspective to everything that we anticipate in doing. That is a great plus to me because I know you're very close to the culture and the native practices. And so with that in mind, I think that's a different perspective on the Charter Commission that I think you'll do really great and it's a plus in my mind. MS. LEITHEAD TODD: Most of my mo`opuna are kanaka maoli. So, it's going to be close to my heart. Page 16 Hawaii County Council-43 June 29,2018 MS. DAVID: Yes. And so, that's why the decisions that you make, you're making it for the right reasons, I believe, that will protect this island for generations. So, mahalo for that. CHR. POINDEXTER: Thank you. Any other discussion? Council Member Eoff MS. EOFF: Basically,just ditto. I think what Ms. David said is important because, when you look at all the different faces and backgrounds of the commission, it's really important to have all of these perspectives brought to the table. So, thank you very much for coming out of retirement and all of the fun things you get to do with your family, to focus on this next year. CHR. POINDEXTER: Thank you. Any other discussion? Seeing or hearing none, all those in favor of approving the nomination of Bobby Jean Akane Leithead Todd to the Charter Commission say "aye." Vote on The motion to confirm the appointment of Ms. Bobby Jean Ms. Leithead Todd's Leithead Todd to the Charter Commission was carried by Appointment: the following voice vote: (Approved) Ayes: Council Members Chung, David, Eoff, Kanuha, Lee Loy, O'Hara, Richards, Ruggles, and Chair Poindexter—9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Your nomination has been approved. Motion to Approve: Mr. Richards moved to confirm the appointment of Ms. Sarah H. Rice to the Charter Commission. Seconded by Ms. Eoff. CHR. POINDEXTER: Mr. Kauka, please introduce your nominee. Oh, the nominee is in Kona. MR. KAUKA: Yes. Thank you. Sarah H. Rice, who joined us by video from Kona and apparently might be more commonly known as Sally Rice, is the owner and partner of Agro Resources since 1987. Her list of community service includes previously serving on the County Planning Commission and as executive director of Hawaii Tropical Fruit Growers. CHR. POINDEXTER: Thank you. Ms. Rice, if you could say a few words? Page 17 Hawaii County Council-43 June 29,2018 (Note: At this time, nominee Sarah H. Rice came forward to address the members of the Council, via videoconferencing from Kona.) MS. RICE: Good morning from Kona to all the Council Members. It is certainly an honor to be included in this very prestigious group of nominees. I look forward to a huge challenge and also a very great responsibility to the people of our island. And also, it's a wonderful group. I do know some of them quite well, and I think we will have some fun as well as work very hard. Thank you for this honor. CHR. POINDEXTER: Thank you. Council Member Eoff MS. EOFF: Thank you. I just wanted to thank you, Sally, again for your willingness to give up time to this commission and to serve, because you definitely have proven yourself as someone with a very deep commitment to resiliency and sustainability and fair and honest treatment of not just people but our society and our community as a whole. I watched you on the Planning Commission back in the `90s I think and appreciated your input there. I've just come to learn more about your background by reading this confidential, but thank you again. CHR. POINDEXTER: Thank you. Council Member Richards. MR. RICHARDS: Thank you, Chair. I, too, strongly support and echo the support of my fellow Council Members for Sally Rice. I've known Sally again for a very long time. I've worked with her and her family for generations. I couldn't echo enough what Ms. Eoff has said. I remember back in the Planning Commission days, and I just interacted with her over the years. Again, stellar nomination. So, I wholeheartedly support. CHR. POINDEXTER: Thank you. Seeing or hearing no other discussion, all those in favor of approving Sarah H. Rice to the Charter Commission please say Ic aye. Vote on Ms. Rice's The motion to confirm the appointment of Ms. Sarah H. Appointment: Rice to the Charter Commission was carried by the (Approved) following voice vote: Ayes: Council Members Chung, David, Eoff, Kanuha, Lee Loy, O'Hara, Richards, Ruggles, and Chair Poindexter—9. Noes: None. Absent: None. Excused: None. Page 18 Hawaii County Council-43 June 29,2018 CHR. POINDEXTER: Your nomination has been approved. Thank you. Motion to Approve: Ms. David moved to confirm the appointment of Mr. Christopher John Imiloa Roehrig to the Charter Commission. Seconded by Mr. Richards. (Note: At this time, nominee Christopher John Imiloa Roehrig came forward to address the members of the Council.) CHR. POINDEXTER: Mr. Kauka, please introduce your nominee. MR. KAUKA: Christopher John Imiloa Roehrig is an attorney and participated with the South Kohala Development Plan Action Committee and, very simply, indicates that he wants to improve the quality of life on the Big Island. CHR. POINDEXTER: Okay, Mr. Roehrig, do you want to say a few words? Could you put on your mic? There you go. Thank you. MR. ROEHRIG: Thank you very much for this opportunity. I'm honored, humbled by all the other people here and their qualifications, etc. I do see the huge challenge and hope I do well. CHR. POINDEXTER: Any discussion? If not, I'd just like to sayoh, go ahead, Council Member Chung. MR. CHUNG: My—Kit is an attorney as well, and my contacts with him have been infrequent at best over the years, but he is a Roehrig. That name itself is of the highest level of esteem in the legal profession. My dealings are more with his brother Stan. We all know how community-minded both of them are. But I just wanted to draw the comparison between Kit and Paul, whereas earlier I said Paul was going to be silent; we can expect that. I think maybe Kit, knowing how Stan is, might be a little bit different, yeah, but all positive. All positive. Congratulations, Kit. Thank you. CHR. POINDEXTER: Okay, seeing or hearing no other, I'd like to just say that I had the opportunity of working for Mr. Roehrig and I can just tell you that the personalities between him and his brothers are like night and day. I'm serious. I mean, he does argue real well in court; however, I don't think he's as always, I was going to say, well,just leave it at that. But you're the more quiet one. I know your commitment to the community `cause I've worked for you and saw how you always fought for the underdog. I really appreciated that. So, thank you for your commitment to serve. I'm looking forward to hearing so much about this wonderful commission. Like everyone has said, this is an all-star commission. I wish I had the time to speak about each and every one of you; I would take up more time. But I just wanted to specifically say thank you to you. Page 19 Hawaii County Council-43 June 29,2018 MR. ROEHRIG: Thank you. CHR. POINDEXTER: Thank you very much. Okay. All those in favor of approving Christopher John Imiloa Roehrig to the Charter Commission, please say "aye." Vote on The motion to confirm the appointment of Mr. Christopher Mr. Roehrig s John Imiloa Roehrig to the Charter Commission was Appointment: carried by the following voice vote: (Approved) Ayes: Council Members Chung, David, Eoff, Kanuha, Lee Loy, O'Hara, Richards, Ruggles, and Chair Poindexter—9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Your nomination has been approved. MR. ROEHRIG: Thank you very much. CHR. POINDEXTER: Thank you. Motion to Approve: Ms. Lee Loy moved to confirm the appointment of Ms. Marcia A. K. Saquing to the Charter Commission. Seconded by Ms. Eoff (Note: At this time, nominee Marcia A. K. Saquing came forward to address the members of the Council.) CHR. POINDEXTER: Mr. Kauka, please introduce your nominee. MR. KAUKA: Marcia A. K. Saquing is the executive director of Hawaii Island Adult Care and previously was a community outreach coordinator at Kamehameha Schools. She was a board member of the hospice and rotary club of Hilo. MS. SAQUING: Aloha kakahiaka. Good morning. I just want to, first of all, mahalo Mayor. I don't like having my back towards you but mahalo for allowing me to be part of this commission. I'm very humbled. I'm very honored, and I'm particularly excited about working with this esteemed panel. So, I appreciate it very much. CHR. POINDEXTER: Thank you. Council Member Lee Loy. Page 20 Hawaii County Council-43 June 29,2018 MS. LEE LOY: Thank you, Chair. I'll let everybody in on the joke. We all call Marcy "sucking buggah." That's how we always remembered her name. But what I really do want to share with this group is I met Marcy some 20 years ago at the onset of establishing Kamehameha Schools and its parent-teacher program. It was in that moment that I recognized how Marcy was kind of looking around the corner and looking around for the future of our children. That's why I'm so excited—forgive me, I'm not feeling well. But I'm really excited to have Marcy on this board because it was that forethought and that ability to forecast and think about the next generation is what Marcy brings to this commission. I am just excited and thrilled for having her on this panel to think about that next generation. So, thank you so much for serving, Marcy. CHR. POINDEXTER: Thank you. Is there any other discussion? Seeing or hearing none, all those in favor of approving Marcia A. K. Saquing to the Charter Commission please say "aye." Vote on The motion to confirm the appointment of Ms. Saquing's Ms. Marcia A. K. Saquing to the Charter Commission was Appointment: carried by the following voice vote: (Approved) Ayes: Council Members Chung, David, Eoff, Kanuha, Lee Loy, O'Hara, Richards, Ruggles, and Chair Poindexter—9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Your nomination is approved. Motion to Approve: Ms. O'Hara moved to confirm the appointment of Ms. Donna Mae Springer to the Charter Commission. Seconded by Ms. David. (Note: At this time, nominee Donna Mae Springer came forward to address the members of the Council.) CHR. POINDEXTER: Mr. Kauka, will you introduce your nominee? MR. KAUKA: Donna Mae Springer of Puna, though she is a former police officer, she actually retired from the County as a claims investigator. She also volunteers with the Visitor Aloha Society of Hawaii. CHR. POINDEXTER: Ms. Springer? Page 21 Hawaii County Council-43 June 29,2018 MS. SPRINGER: Good morning, Chair and Council Members. It's a privilege to be here today. I need to quote Deacon Andrews: "I come to you with an open mind and a willingness or a willing heart and to do the best that I can to serve the people of this County." CHR. POINDEXTER: Thank you. Council Member O'Hara. MS. O'HARA: Thank you, Chair, and thank you, Ms. Springer, for coming before us and your willingness to serve on this commission. You have a big job in front of you because, of all of the commissioners, you're the only one being appointed directly from the Puna District. It's a big district. We both know that. But you come highly recommended. We haven't personally had any interactions in the past, but in hearing about you, I've read up on you and I'm pleased that you're going to be on the commission. But again, with you as the only person being appointed who is from the Puna area,just remember us, all the residents, all 50,000 of us as you go to work with the commission. Thank you. MS. SPRINGER: You're welcome. CHR. POINDEXTER: Thank you. Any other discussion? Seeing or hearing none, all those in favor of Donna Mae Springer's nomination to the Charter Commission please say "aye." Vote on The motion to confirm the appointment of Ms. Donna Mae Ms. Springer's Springer to the Charter Commission was carried by the Appointment: following voice vote: (Approved) Ayes: Council Members Chung, David, Eoff, Kanuha, Lee Loy, O'Hara, Richards, Ruggles, and Chair Poindexter—9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Your nomination is approved. MS. SPRINGER: Thank you. CHR. POINDEXTER: Thank you. Motion to Approve: Ms. Lee Loy moved to confirm the appointment of Ms. Jennifer Leilani Zelko-Schlueter to the Charter Commission. Seconded by Mr. Richards. Page 22 Hawaii County Council-43 June 29,2018 (Note: At this time, nominee Jennifer Leilani Zelko-Schlueter came forward to address the members of the Council.) CHR. POINDEXTER: Mr. Kauka, please introduce your nominee. MR. KAUKA: Jennifer Leilani Zelko Schlueter MS. ZELKO-SCHLUETER: Yeah. MR. KAUKA: This is starting to feel like commencement—is director of government and affairs for Hawaii Electric Light Company, a role she's had in the last four years. Also an attorney, she has been with a couple of law firms, local law firms. She served on the East Hawaii Regional Board of Hawaii Health Systems Corporation. Jennifer attended UH Hilo before obtaining her law degree from Gonzaga. CHR. POINDEXTER: Ms. Zelko-Schlueter. MS. ZELKO-SCHLUETER: Thank you, Chair. Council Members, it's a privilege to be here this morning talking to you about something not related to power. I would like to thank Mayor Kim and his staff for the nomination and the opportunity to serve. Actually, this list is quite intimidating. I'm humbled but it's an intimidating list of people with their backgrounds. CHR. POINDEXTER: Thank you. Council Member O'Hara. MS. O'HARA: Thank you, Chair, and thank you, Jennifer, for stepping up. We've had the privilege to work together a lot recently, given the power situations in my district. It's been a pleasure always. Jennifer is very knowledgeable, and I think you're going to add a lot to this commission. You may be one of the younger ones on the commission, so good for that perspective as well. But you know a lot that will be useful to this commission, so I look forward to having you on it. Thank you. CHR. POINDEXTER: Thank you. Any other discussion? Council Member Richards. MR. RICHARDS: Thank you, Chair. Actually, Ms. Zelko, better known as "HELLO Zelko,"to the Council. I've gotten to know her recently well over the last 18 months in working with her. What I didn't realize was I went to high school with her brothers. When we talk about the families and the family connections, if we go down the list of the people here, as Mr. Chung had said, Roehrig, Bergin, Zelko, we're talking about legacy names here, which means investment in our County. For a variety of different reasons, this brings a lot to our commission. So, I think this is outstanding. Page 23 Hawaii County Council-43 June 29,2018 I don't know if we'll have a chance to say it, but I'm fully going to be supporting HELCO Zelko's nomination here. In greater context and as a whole, if we look at this commission and we look at agriculture, which is near and dear to my heart and I beat that drum the whole time, less than 2 percent of our population comes from agriculture anymore and that means less than, on average, 2 percent of our representation comes from agriculture. If you look at this list, over 50 percent have deep ties to agriculture, critically important for the Big Island. So again, Jenny, congratulations but I'm fully supporting Ms. Zelko. CHR. POINDEXTER: Any other discussion? Council Member Eoff MS. EOFF: Thank you. I had noticed that, too, about the ranching and agricultural backgrounds of many of the nominees. And I learned something new about Jen, reading her background. If Judge Ibarra is one of your personal references, I think that's a good thing. Thank you. CHR. POINDEXTER: Thank you. Council Member Lee Loy. MS. LEE LOY: Thank you, Chair. This one's a real challenge for me, too. I've known Jen for 18-plus years and shared an office at a law firm and just enjoyed our time together. And they do; they save the best for last. And so, Jen, really thank you so much for stepping up. To bring a broader perspective and a larger charge to this entire body, we heard about how you folks will create the foundation for the next few decades. I'm really excited about all of the skillsets that you folks bring to this body, not only touching upon agriculture but our cultural resources, protecting those things for the next generation. We have so many people who have those legacies, as Mr. Richards talked about. So, if there is any charge to this group, I really appreciate everybody's ability to let go of the constraints and think beyond whatever rules, policies, procedures we have right now and expand and grow. Jen, the best thing you did today was bring your mom, who I know. So, thank you so much for really driving home the fact that this is about our families. What you folks will be doing will be for our families and our future generations. So, thank you so much. Mayor Kim, mahalo nui loa for such an all-star team. Thank you. CHR. POINDEXTER: Thank you. Council Member Davidoh, but, I'm sorry—okay, Council Member David. MS. DAVID: I'll be real short, Mr. Chung. I just wanted to say thank you so much for serving. Really, I think Ms. Lee Loy wrapped it up quite well that you're the last of the 11 appointees, and I think it really speaks loudly about the Page 24 Hawaii County Council-43 June 29,2018 caliber of this Charter Commission. I'm very excited that I'm a part of appointing such a stellar commission. So, I support you wholeheartedly, and thank you for all that you do. Aloha. CHR. POINDEXTER: Council Member Chung. MR. CHUNG: Yeah, thank you. Despite what she may say, Jen really has no reason to feel intimidated by being included in this group because her professional, her community, her resume is impeccable. Quite frankly, she's smart and friendly and it's all really what you could ask for anyone on this commission. But now, I wanted to say something to the broader community, the commission, and it's only my suggestions. You don't have to really listen to them. Ms. O'Hara and I, actually independent of one another, had been preparing Charter amendments. I never saw hers, but basically, the intent was the same. What happened is I had deferred to her and then she later told me after the deadline passed that she was going to defer to the Charter Commission. That idea was to have department heads appointed for two-year terms. Now, that idea may not be embraced by, of course, the Administration but I want you guys to look at it and really think about it. Just look at the—and try to balance the interest here. When the voters of Hawaii County chose to make Council Members serve as for single-member districts, at the same time they made Council Members also serve for two years. Prior to that, they were in staggered four-year terms. So therefore, department heads would at some point be confirmed—well, Council Members would at some point weigh in on each department head's appointment. Now, there is the possibility that a Council Member will never vote on a department head's confirmation, having served two years. And on a more fundamental basis, these two-year terms created a situation where the public now comes to us first. Whether it's a State problem, a County problem, they come to us first. It's become a localized issue now because they think we represent them. I don't like the situation. I'm not just talking to you; I'm talking to everybody. Right? `Cause, I truly believe we're supposed to be representing the whole island. But that's the situation that has evolved. Given that situation, we absolutely need the cooperation and help of administrative department heads. Sometimes, I've got to say, we don't get it. A lot of times, also, if you think about it conceptually in terms of employment, these guys come up—and I'm not just talking about this bunch of department heads; it goes back many years. But they come up because, per Charter, you have to submit nominees by a certain time. There is no probation period like other Page 25 Hawaii County Council-43 June 29,2018 employees of the County are held to. We have to take a leap of faith that these guys are going to do a good job for both the County and the residents of our island. Sometimes, it just doesn't work out that way. If you guys want to put a probationary period, that would be fine too. But I think it's something that should be looked at. And quite frankly, there is a balance. Whatever you guys decide is fine with me. The second idea was, and something that came up as a result of the lava eruption and we're too late in trying to submit any kind of Charter amendment, but it's to give the Mayor upon the declaration of an emergency because he has that power via ordinance—he can suspend ordinances but cannot suspend Charter provisionsI think the Mayor should be given some flexibility in those circumstances of an emergency or something else. So,just food for thought, yeah, all of you. Thank you. CHR. POINDEXTER: Thank you. Okay, seeing no other lights on, all those in favor of approving Jennifer Leilani Zelko-Schlueter to the Charter Commission please say "aye." Vote on Ms. Zelko- The motion to confirm the appointment of Ms. Jennifer Schlueter's Leilani Zelko-Schlueter to the Charter Commission was Appointment: carried by the following voice vote: (Approved) Ayes: Council Members Chung, David, Eoff, Kanuha, Lee Loy, O'Hara, Richards, Ruggles, and Chair Poindexter–9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Your nomination has been approved. Before we take a break to congratulate all of you, I just want to give an opportunity—and before I have a motion to close file—to anyone who has anything to say to the entire group or any—okay. We're okay to vote on closing file. So, can I have a motion to close file on Communication 971? I mean, no, not to close it. We had a motion to approve it, so now we need a motion to close file, correct? Yeah? Oh, I'm sorry, not motion, vote to close file. You're right. Sorry about that. Okay, so all those in favor of closing file on Communication 971, please say "aye." Page 26 Hawaii County Council-43 June 29,2018 Vote on Comm. 971: The motion to approve the nominations contained in (Approved) Comm. 971 was carried by the following voice vote: Ayes: Council Members Chung, David, Eoff, Kanuha, Lee Loy, O'Hara, Richards, Ruggles, and Chair Poindexter—9. Noes: None. Absent: None. Excused: None. CHR. POINDEXTER: Okay, Communication 971 is filed. So, we're going to take a brief recess to congratulate all of you. Recess: At 11:44 a.m., the Chair called for a recess. Reconvene: The meeting reconvened at 12:04 p.m. Comm. 958.6: BILL 159, DRAFT 2: REQUEST FOR RECONSIDERATION From Council Member Eileen O'Hara, dated June 21, 2018, requesting Bill 159, Draft 2, be reconsidered pursuant to Council Rule No. 15. ;and Bill 159 AMENDS CHAPTER 2 OF THE HAWAII COUNTY CODE 1983 (Draft 2): (2016 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 Second Reading: June 19, 2018 (Note: Comm. 958.7, from Finance Director Deanna Sako dated June 26, 2018, transmitting additional detail on the use of GET surcharge revenue, was circulated. In addition, Comm. 958.8, from Finance Director Deanna Sako dated June 28, 2018, transmitting a table of the costs and benefits of a GET (General Excise Tax) surcharge, was also circulated.) Page 27 Hawaii County Council-43 June 29,2018 Motion to Ms. O'Hara moved to reconsider the vote taken on Reconsider: Bill 159, Draft 2, on June 19, 2018. Seconded by Ms. Eoff CHR. POINDEXTER: Is there any discussion on that motion to reconsider before we—Council Member O'Hara. MS. O'HARA: Ah, yes. I asked for the reconsideration because this bill has become a subject of compromise by the County. We initially considered passing a half percent surcharge, and this bill only passes a quarter percent surcharge. So, that was a concession that I felt willing to make although I would prefer that we pass the half percent. When the bill was amended to provide a sunset date, which is effectively a year from now in terms of fiscal years, I felt it did not meet the policy basis for doing this action, which is to diversify the revenues for the County of Hawaii. As I've said before, we're going to be losing revenues from fuel tax because of the increase in fuel efficiency in vehicles. We're clearly facing a decline in overall property tax revenues. We don't know how long that impact will last, and we don't even know the full extent of it as of yet. So, to pass this measure for just that short period of time appears like a stopgap measure and doesn't really achieve the goal of diversifying revenues for the County. And so, I was hoping that those who were supportive of this bill in its former read would publicly state that they are also willing to see that early sunset date repealed and removed and that, that action take place before November of this year. The reason being is we are having an election, and there is going to be a change in Council Members. We know that at least two of our Council Members are leaving. So, any commitment made by this body will not necessarily extend beyond there. So, that's what I'm hoping we hear in discussion today. Thank you. CHR. POINDEXTER: Okay, on the motion to reconsider, any discussion on that motion before we go on to the main motion? So,we're on the motion to reconsider. I guess we can take a roll call, Mr. Clerk. Oh, hang on one second. Council Member Lee Loy? MS. LEE LOY: Yeah, thank you, Chair. I'm not sure if this is the appropriate time but we have on our folder Communication 958.7 from the Administration, which outlines a detailed framework of what the GE (General Excise) surcharge revenue would be used for. CHR. POINDEXTER: So, we can use that in the main discussion if we do pass the reconsideration. MS. LEE LOY: Thank you, Chair. Thank you for that. I yield. Page 28 Hawaii County Council-43 June 29,2018 CHR. POINDEXTER: Okay, Mr. Clerk. Roll call, please, on the motion to reconsider. Vote on Motion to The motion to reconsider the vote taken on Bill 159, Reconsider: Draft 2, on June 19, 2018, was carried by the following roll (Approved) call vote: Ayes: Council Members Chung, David, Eoff, Kanuha, Lee Loy, O'Hara, Richards, and Chair Poindexter—8. Noes: Council Member Ruggles — 1. Absent: None. Excused: None. Motion to Approve: Ms. David moved to pass Bill 159, Draft 2, on second and final reading. Seconded by Ms. O'Hara. CHR. POINDEXTER: Now, Bill 159, Draft 2, is on the floor. Since, Ms. Lee Loy, you started off earlier, I'm going to allow you the floor. Council Member Lee Loy. MS. LEE LOY: Thank you, Chair. Maybe if we could have, I guess, Nancy. Nancy, you've provided to the Council Communication 958.7, which provides the framework of the anticipated revenue generation over the Fiscal Years 2018-2019 and then 19-20. Now, I'm just hoping that you could share with this body how you folks came up with these numbers and just the thought process as far as assigning them to the various agencies. Thank you, Nancy. (Note: At this time, Finance Deputy Director Nancy Crawford came forward to address the members of the Council.) MS. CRAWFORD: Thank you. Nancy Crawford, Deputy Director of Finance. Good morning, everyone. Thank you for your reconsideration. I was asked for additional detail. We had provided details in a couple of different forms, but I was asked for additional detail and wanted to provide it as looking forward, too, as a two-year plan because we, should this pass, we're estimating $2 million. And estimating that in the following year, we might have approximately 25 million. So, we based our budget on that (see Comm. 958.7). The first section, as you see, is Mass Transit from General Fund. And that, as we've discussed, is a transfer. The $4.9 million that you see is what is currently in the budget. That is now our budget for the new year. There is much more detail within that budget if one wishes to look into that. We just took the general Page 29 Hawaii County Council-43 June 29,2018 categories. We then took the following year's budget and, again, out of that budget document with some adjustment. But basically, it had already been set up in the General Fund. Moving to the next section, which is the Mass Transit Master Plan Implementation. These amounts are a combination of what is laid out in the Mass Transit Master Plan and the goals and objectives of that plan because the master plan doesn't follow exactly this style of budgeting. It's not this specific, but I have, and perhaps I should bring up the master plan and I can go through some of those strategic goals. There were a couple of sections in the plan, as I'm sure you all recall, and there's a financial section. But again, I would say that it's not set out in the same method to be able to just easily drop those numbers in here. But the goals and strategies for achieving them were to make riding transit easier, reliable, and compatible with multi-modal options; create a transit system to serve the employment and social needs of all people; implement technology to provide real-time transportation information; create transportation hubs and bus stops with amenities that provide rider comforts and safety; and help support community and village gathering places and phase system implementation in a fiscally sustainable manner. Then within that, they have specific strategies. Following that and this general financial plan, we know that we need to purchase more buses and you'll see a $700,000 allowance in the upcoming year for that. The expansion of these specific programs below is addressed in the strategy. Capital improvements which is, again as I mentioned, to improving bus stops, shelters, and transportation hubs, technology improvements that would include cash management on the buses because this also ties in with the audit that we had from our legislative auditors, as well as other technologies again more specifically identified in the transportation plan, and I can go into that in more detail. And then, as part of their strategy, is adding routes and hours to those routes. For the following year, again we're staying with those categories, expanding programs carries forward. That's not like a one-time cost. We know we'll still need to be buying additional buses and equipment even a year from now. And so, that amount was put in. The expansion of programs assumes like a carry forward of approximately 800,000, and I realize this is a rough budget in spite of the fact that we were trying for some amount of precision here. But then, some additional expansion as well. Capital improvements, we're hoping with additional funding to be able to really step that up. And that's probably more when transportation hubs might come in or something more sophisticated than just improved shelters and stops. Page 30 Hawaii County Council-43 June 29,2018 Additional technology improvements getting to the system where we can have sort of a GPS (Global Positioning System)plan and accountability, allowing more efficiency and also accountability of the bus system to the passengers where they can see where their buses are. That's one of the goals from the plan. And again, adding routes and hours carries forward. We know that just as we have collective bargaining that increases our salary and wages, these contractual—the drivers that are contracted, they're tied to that so their salaries and wages go up as well. So, whether it's down here or up in the salary and wages above, there is going to be well, it's not in salary and wages. It's actually in the operating expenses because they're contractual. So, that's all the focus on transportation, which is where we really wanted an emphasis to try to grow that. Then, in this current year, that particular budget leaves us with about $1.5 million, which ties out pretty well with the cost for planning and design for Ane Keohokalole, Phase 3. And that basically uses up $10 million here. Then in the second year where we have additional funds, some of the same projects, again Ane Keohokalole coming across with the right-of-way acquisition and I did speak with public works to get a broad estimate of what they expect that acquisition might be and the same thing for Oneo Lane, which is the next one. Preventative maintenance and major resurfacing. These are large projects. This is not in-house highway guys' projects. This is through engineering. These are projects that were identified to the State for possible STIP (State Transportation Improvement Program) funding for Federal funding, but we're not sure that's going to be available. They're very focused on working with what we have as opposed toand this comes kind of down from the fells, which is the guidance that puts these projects as priorities. And so, preventative maintenance and major resurfacing on roads, that I'm sure you're all familiar with, that need work. And there are many more, but that would be representative of how we anticipate spending this money. MS. LEE LOY: Follow up question. You mentioned, right at the top, Mass Transit from General Fund. Is that going to be a transfer? Because, we'll see more money come in from the GE, which will kind of loosen up funds from the General Fund. Where is that, kind of, spillover from the General Fund going to go? MS. CRAWFORD: If today's bill passes, one of the things it does is create this special fund for the GE tax revenue to flow to, and it will go there. And then, we will be doing a budget adjustment. It will come to the Council to request a budget adjustment, which will reduce 4.9 million of expenditure already in the General Fund budget and move it over to the GE Tax Fund budget to be expended from there. Does that answer that? Page 31 Hawaii County Council-43 June 29,2018 MS. LEE LOY: I have to say thank you. This was something I was looking for from day one, and we've heard a lot from our constituents about not giving a blank check or having some accountability or some transparency. And for me, this really does raise the bar as maintaining those things for our taxpayers. We have a lot of emotion wrapped around this GE, but I have to stick to the merits of a policy and a piece of legislation that we have before us. So, this does a lot for me to ensure the merits to the public on where the money is going, how they can hold us accountable—and us as a whole body and the Administration—and provide a level of transparency. So, thank you so much for preparing this for me, Nancy. I really appreciate it. I yield at this time. CHR. POINDEXTER: Okay, I cannot remember who had their lights on first. But okay, `cause I know Council Member Chung had his on, too, and wanted to speak. So, can I go to Council Member Chung first and then Council Member Ruggles and then this way? Is that okay, Tim? MR. RICHARDS: Yes. CHR. POINDEXTER: Okay, thank you. Council Member Chung. MR. CHUNG: Thank you. Nancy, this relates to Ms. Lee Loy's last question about what we're going to do with that General Fund monies that are going to be freed up that were previously going to be devoted to mass transit. Now, we're looking at about, what, $4.9 million? MS. CRAWFORD: Correct. MR. CHUNG: Yeah. And again, let me just make a prefacing remark. The answer to this question really isn't going to affect my vote today. But I think just for the purpose of getting full information out there, I just wanted to ask. You were talking about a possible, or you or Deanna or Nancy, the other Nancy, were talking about a possible $5 million shortfall, right, as a result of loss of real property values and other things that we've been using to spend or that we've accrued as a result of the eruption. And I did state earlier that I didn't want this to be a measure that addresses an emergency situation. It was supposed to be a forward-looking measure. But be it as it may, the revenues that are generated from fares, where does that go? Doesn't it go into the General Fund? It doesn't go into the Mass Transit budget, right? It goes into the General Fund. MS. CRAWFORD: That's correct. That is MR. CHUNG: How much do we generate a year, more or less? Page 32 Hawaii County Council-43 June 29,2018 MS. CRAWFORD: Our budget for the upcoming year is close to $1.2 million in revenue from the buses. MR. CHUNG: So, in actuality, we have to subtract that amount from that 4.9 million that we're putting into mass transit, right, to get a clearer picture of the money that we're going to be saving? MS. CRAWFORD: That's correct. At the time when we first started this and first began talking to Council about it, we were very focused on GE tax on establishing a new fund for GE tax and moving the expenditures to the fund, and really didn't have the focus on or bringing to the Council that there is also revenue in the General Fund. So, moving that revenue, we didn't really want to move that revenue into something that's specifically a GE tax fund. We've been talking about that and what the solution may be, and we're still going to be working with our controller as far as when it's time for us to be doing all of our budget adjustments, where that may go. But yes, the impact of that will mean that we are not realizing the full benefit of moving the expenses out and we'll also lose some revenue. MR. CHUNG: So, in calculating our shortfall, we also have to subtract or add, depending on how you look at it, that one-point-something million. MS. CRAWFORD: That's correct. Yeah, that's the way I would just say it, is that it reduces the benefit that we're going to derive from being able to move those expenses away. Because if we move the revenue as well, then that reduces our revenue further, yes. MR. CHUNG: I just wanted to raise those points. But as I said, it's not really going to have any bearing on my vote, ultimately, but that's for the purpose MS. CRAWFORD: Thank you for giving me the opportunity to address that because that was sort of an incidental oversight because of our focus on the expenditure side. And it really is important for all of you to realize that's another aspect of this that we will, as we come back to you with a budget adjustment, we will be taking into account as well. CHR. POINDEXTER: Thank you. Council Member Ruggles. MS. RUGGLES: Thank you. On this two-year financial plan that you prepared for us here, that 4.9 million Mass Transit from General Fund, Salaries and Wages, Operating Expenses, Equipment, and Fringe Benefits. You said that's currently in the budget? MS. CRAWFORD: Yes. Page 33 Hawaii County Council-43 June 29,2018 MS. RUGGLES: So, if the GET surcharge revenue is passed here and does come, will it replace those funds? MS. CRAWFORD: We are establishing a special fund that will receive that revenue. And then, moving these expenditures from the General Fund to that fund to be paid for there helps us reduce expenditures to offset the reduction in revenue from loss of real property tax. Does that answer your question? MS. RUGGLES: Okay. So, does that mean that this increase in revenue will go towards the offset in real property tax? MS. CRAWFORD: Yes, in that sense. Yes, that we're moving expenditures to another place. Yes. MS. RUGGLES: Okay. So then, a GE tax essentially is going to offset the property tax loss in revenue? MS. CRAWFORD: A portion of the GE tax that would be received under this bill would help the General Fund by removing the expenditures. MS. RUGGLES: Okay. Thank you for that. What was the deficit for real property tax? Was it 3 million? MS. CRAWFORD: Our estimated loss in real property tax? MS. RUGGLES: Yes. MS. CRAWFORD: We've had a range that startedI looked back at what we were saying when we first were talking about this in early May. And we talked about a range from 3-6 million. We have more recently, based on more specific known losses like totally inundated properties and then others in that general area, we came to an estimate of approximately $5 million, which is why we talked about trying to make this budget work with $5 million less in revenue in the General Fund. MS. RUGGLES: Okay, thank you. So then, this isn't entirely accurate but the general excise tax is going to go to their Mass Transit because that's already in the budget. So, what this is going to do is offset the cost of this big estimate of real property tax revenue. MS. CRAWFORD: I don't differentiate. I'm sorry, I'm not seeing the same differentiation you are. But yes, the $10 million of GE tax, if that's what we actually end up with, will cover 4.9 million that would have been covered by real Page 34 Hawaii County Council-43 June 29,2018 property tax revenue that's now lost, plus there would be some additional revenue from the GE tax that would provide the option to start implementing the Mass Transit Master Plan. MS. RUGGLES: Right, and that's what the 3.6 is for, at least for the first year. MS. CRAWFORD: That's correct. MS. RUGGLES: And then,just so that the public knows, the rest of the GE tax funds would go towards three projects in Kona and one project in Hilo—at least that's what they said. Article 41, the Disaster Emergency Fund, the last that we had talked about this, that there were $6 million in there, is that still true? MS. CRAWFORD: Yes. MS. RUGGLES: Okay. And the Budget Stabilization Fund? MS. CRAWFORD: The balance is still the same. We haven't taken any money. We would have to come to Council to take any money from there. And while I say that what's in the Disaster Emergency Fund is that balance at the moment, all our departments are incurring costs as they have been since May 1st. And some of those are going to be transferred over and charged against that disaster fund. And to add, the State money went into that fund as well. MS. RUGGLES: So, Article 43, the Budget Stabilization Fund, it says the purpose of this stabilization fund shall be a temporary supplemental source of funds for the County to use during times of hardship while a plan for cost reduction and revenue enhancement is developed to insulate General Fund programs and current service levels from revenue shortfalls to minimize the need for budget cuts and tax increases. It says that in order to use these funds, the Director of Finance must make a determination. Has the Director of Finance made a determination so that we could use these funds or access these funds to avoid a tax increase? MS. CRAWFORD: I don't have the County Code right in front of me to discuss line by line, but the intention is that within a year if you have a surprise loss of revenue, for instance if we were already into next year and lava takes out a whole big other section or we have a hurricane come through that does considerable damage and thereby reduces real property tax further, then that's the loss of revenue that the Director of Finance would recognize that would trigger coming forward and saying that we might need to take some money from there because we are within that fiscal year and we've had a surprise loss of revenue for any one of a number of disaster reasons or something else. It's very precious savings there to help us through that year. Page 35 Hawaii County Council-43 June 29,2018 MS. RUGGLES: Right, which I believe is what happened this year. We've had a reduction in revenue. MS. CRAWFORD: Well, in this fiscal year, we've had a very slight reduction in revenue. We are crediting those people who've lost their property on a prorated basis. They would have paid their taxes by February. And so, for the last, depending on when they lost their home, but for the months of May and June, they will be receiving some refund for those losses. But that's the only loss of revenue for this year. MS. RUGGLES: As I read this article, it seems quite appropriate because we've had, I mean, this is meant to minimize the need for budget cuts and tax increases and to protect current service levels from a reduction, which is exactly what the Administration has been saying as far as why we need to increase taxes is to stop the reduction in services. And so, if we haven't utilized this fund yet, I find it inappropriate to just go ahead and increase taxes, especially when we have 6 million in a Disaster Emergency Fund and we have 6 million in our Budget Stabilization Fund. That more than covers the 10 million for this whole fiscal year up to next July. And then, we also have the funds from the Governor. Do you know what the State has promised us? MS. CRAWFORD: Well, we received $12 million. That and the money that was already in the disaster fund are for disaster response expenditures. They are not for any other normal County operations. MS. RUGGLES: Correct. MS. CRAWFORD: Thank you. MS. RUGGLES: That's exactly what the Administration is telling us justifies the proposed tax increase is this disaster. We also have the Geothermal Fund. We have the PONC (Public Access, Open Space, and Natural Resources Preservation Commission) Fund that we can borrow from. I just want to close with this. I got this postcard from a woman actually not in my district. She says, "County Councilperson Jen Ruggles, thank you for your "no" vote on the GET surcharge. We applaud your efforts to try to get along with what we have. I was awake all Tuesday night anticipating a rent increase if tax was approved. As a 71 year old who lives on 1,100 a month and pays 800 a month in rent, increases would hit hard. Don't relish playing this anticipation game until 3-31-19. You could all attack at any moment. So, could you please appeal to someone else to help with the fund? Mahalo. Pat Sexton of Hilo." So, I just wanted to share that. Thank you. CHR. POINDEXTER: Thank you. Council Member Richards. Page 36 Hawaii County Council-43 June 29,2018 MR. RICHARDS: Thank you, Chair. Okay, Nancy, round numbers. Our budget right now is 518 million for next fiscal year? MS. CRAWFORD: Correct. MR. RICHARDS: The proposal before us with GET has an estimated revenue of $10 million? MS. CRAWFORD: Yes. MR. RICHARDS: We are 5 million short as far as projected from the revenue stream of real property, taking us to 513 for anticipated revenue for next fiscal year. MS. CRAWFORD: Right. That's absolutely right; 518 is our total budget. That particular hit is to our General Fund budget, yes. MR. RICHARDS: Okay, so that's the shortfall that we're looking at with the 5 million. The 10 million, I think this goes towards what Councilman Chung and Councilwoman Lee Loy's specifically speaking to, that the other 5 million—and we're not going to argue 4.9 or 5.1 the other 5 million goes into that special fund that is not appropriated as of yet. It has to come back to Council for appropriation. Is that correct? MS. CRAWFORD: That's correct. MR. RICHARDS: Okay. So, if this measure passes, we will have a balanced budget plus, theoretically speaking, we have approximately an anticipated 5 million extra coming in to the County that can be appropriated at a later date. MS. CRAWFORD: Right. What our intention would be if this should pass is that we would be coming in with two budget amendments. One of them is for the General Fund, and that would reduce real property tax revenue by—we actually have a little offsetting revenue that we're aware of that we're going to put in, but will reduce the real property tax revenue by $5 million. And then, we would be reducing the Mass Transit expenditures by $4.9 million that's here. So, that's one budget adjustment, and there's a little revenue that sort of makes that work. Then, there's a second budget amendment that would come forward, which is for that new GE tax fund. And we would be bringing that forward at the same time because we would be asking to budget these General Fund Mass Transit expenditures in there. Plus, we would probably provide a recommendation of how the balance of that anticipated revenue would be. Because, we're putting in, like, $10 million revenue, 4.9 of Mass Transit expenditures, and the balance as I'm showing it here. Page 37 Hawaii County Council-43 June 29,2018 MR. RICHARDS: So, what I'm hearing is that very shortly after that you're going to want to revise the budget from 518 to 523. Is that what I'm hearing? MS. CRAWFORD: I'm sorry, I have think about that MR. RICHARDS: I'm sorry. MS. CRAWFORD: Because it's a different way of looking at it, but yes, we would be showing additional increased revenue in our overall total budget for all of the different funds. That would be an increase because of the additional revenue coming in. MR. RICHARDS: So, we're going to bump the budget with increased revenue? MS. CRAWFORD: Because, that's what we anticipate receiving. That's how we normally do our budget, yes. MR. RICHARDS: Which is increasing our expenses to match our income stream, which is one of the complaints that we have from our constituency. No, I understand that we are in an unusual situation. We have an unprecedented type of emergency that is costly to the County, costly to the constituency. Unlike a hurricane or a tsunami or an earthquake that has a defined ending point and a recently determinable ending point, this eruption, we have no idea. So, I got that part, and I got the part that we're losing protected revenue because of property loss, which again is unusual in probably any instance around. I understand the need for expanding our revenue stream as a County. Somewhere between two-thirds and three-quarters of our revenue for our County come from real property and that puts a strain on our financial structure as a whole. So as I've said in the past, kind of opening up a bigger net by having a GE tax, which people contributing to the GE are not just from within our County but also are visiting people which, at any given time of course, a quarter of the people on the island are actually visitors. And their spending habits are very different than the residents. So, I've got all that, and I understand all that. If we go back to January or definitely by February, I was a proponent for the half percent provided we got concessions on real property and fuel. And then the island blew up literally. Things changed. And looking at this, struggling on how to get that balance for our County, for our constituency as a whole, I don't think anybody on the Council can argue that we have heard about a 50-50 split on both sides. And both sides are very compelling. I applaud Ms. Ruggles for her unwavering determination of where she's coming from. I hear it. I know what she's talking about. The balance is that on the other side, we're stuck with a decrease in revenue that otherwise we would have been Page 38 Hawaii County Council-43 June 29,2018 planning on going forward. No easy questions to be answered, and no popular answers regardless of what we do. There's going to be pushback no matter what we do here. I appreciate this piece of paper that gives us a tentative plan. Is that the real one? Chair, can I have a moment further? Thank you. I'll keep it short. My concern is the moment that it appears we may get an extra 10 million, rather than balancing our budget to 518, we're getting ready to expand it to 523. That bothers me because I can see holding this 5 million in reserve. And once we get into this, `cause we don't know about this eruption; we don't know where it's going to take us. And for all the right reasons, I can see going for a GE that's going to support this. Like I said, I was ready to come with a half percent, and I had things lined up to get that, which the constituency could have accepted. But now, if we're already talking about going to 523, I have a real problem with that. And so, I want to hear from my other Council Members because we're talking about balancing the budget, not expanding it. And so at this point, I'll yield to listen to other Council Members. MS. CRAWFORD: Excuse me, could I respond? CHR. POINDEXTER: Sure. MS. CRAWFORD: One of the things that grows the budget is grant funding. We are encouraged to go out and get as much grant funding as we can because the dollars come in and they allow us to do programs and that grows, but it grows the budget because you have revenue and you have expenditures. Similarly, we normally, whatever revenue we are confident that we're going to get, we report and put it in. So in this case, rather than saying we're only going to get $5 million this coming year, which just happens to be what will help us take care of the mass transit costs, we're trying to put in what we really believe is a legitimate amount of the revenue we would receive. And in a balanced budget, you do something with the rest of that revenue. Our proposal will be because we felt that the County Council was very supportive of the Mass Transit Master Plan and wanted to see some of that implemented, that's the reason that's where we've gone with showing those kinds of expenditures. But that will be brought to the Council, and the Council can make a determination at that time. That's all I had. CHR. POINDEXTER: Go ahead and finish up. Page 39 Hawaii County Council-43 June 29,2018 MR. RICHARDS: Thank you, Chair, and thank you, Nancy, for that. I hear what you're saying. We need Mass Transit badly. I am not convinced we have the management in place yet to get that. That doesn't mean I want to cut it, but I want to have very strong oversight on that. And I do appreciate what you're saying there. Yes, we report what we expect for revenue, but I do think we also report how we're going to spend it. And to Councilwoman Ruggles' point, I see a lot of East and West Hawaii. I don't see much North and South Hawaii when it comes to the road project. And so, I just throw that out. I want to yield `cause I want to hear from other Council Members. Nancy, thank you so much. CHR. POINDEXTER: Okay. Council Member O'Hara. MS. O'HARA: Thank you, Chair. Historically, we have moved general funds to Mass Transit in the form of budget amendments over the course of a year because we ended up with a shortfall that we didn't anticipate. Has that not happened in the last couple of years? MS. CRAWFORD: There were a number of years ago, and I can't tell you anymore quite how many it was, that all of Mass Transit was in the General Fund. At some point historically, we started because it's an inappropriate use of highway funds. The fuel tax and franchise tax that come in there can be used for Mass Transit. So at some point, we started shifting some of Mass Transit's costs there because the General Fund could not afford all of that at that time. Am I responding to your question? MS. O'HARA: More or less. I know that in the past, the amount from the General Fund has been greater than 4.9 million. I think it's been as high as 7 since I've been sitting on County Council. Is that correct? MS. CRAWFORD: Yes. MS. O'HARA: Okay. So with regard to what Mr. Richards was bringing up, the additional revenue, is to start implementing a plan that is a ten-year plan. That budget that we were given in the Mass Transit Master Plan is a ten-year implementation plan intended that way to be fiscally responsible. If we just did this GE tax increase for a short period of time, we would start implementing a plan that we couldn't complete because we wouldn't have the dedicated revenue for it. Would that be more or less the case? MS. CRAWFORD: Yeah, I would agree with that statement. MS. O'HARA: Okay. So, I just want to point out how important it is that the County has a dedicated revenue source that we can count on to implement those Page 40 Hawaii County Council-43 June 29,2018 types of plans for highways, mass transit, etc. These are projects that are multi- year projects, and they require a longer planning horizon than just one or two years. I know that you've listed projects that are perhaps not in Puna, but we are going to have some serious expenses when we get around to deciding which roads we're rebuilding and how we're going to handle that. So, there are expenses that will be coming at us. I can't say because this is an ongoing situation, it could be next year or years from now, but again, it's important to have that diversified revenue stream so that when we get there, we have money that we can dedicate to those projects. I appreciate that you've done an estimate of 10 million, a kind of conservative estimate, for the half year that we'll be receiving revenues `cause this does not begin until January 1, 2019. And your estimate for the following Fiscal Year 19-20 is 25 million because hopefully you're anticipating things will bounce back. But it may not be that high. It may not be that high because of loss of population. We're experiencing that right now in Puna, and also a loss of visitor stays, counts that's been documented; we have lost that. Will it come back? Let's hope so, but we don't know at this point in time because of the nature of this dynamic event. So, I appreciate that you estimated at the high end for Fiscal Year 19-20 but it could be less, which would impact some of the projects, at least the projects at the bottom of the page, directly. Would that be right? MS. CRAWFORD: That is correct. MS. O'HARA: So, I also wanted to bring attention to a communication from Deanna. That's 958.8 that came to us wherein she remarks "the Administration introduced a GET Surcharge bill as a means to receive much needed additional revenue and to diversify sources of revenue. The County's dependence on one primary source of revenue for the general fund, real property taxes"—and I believe we're somewhere between 70-75 percent dependent on that—"leaves us vulnerable to the whims of the real estate marketplace or other events." Also remarked that our fuel taxes are trending lower over time because of more fuel- efficient cars. So, she goes on to say, "the GET Surcharge currently under reconsideration will allow the County to maintain current services and invest in approving our mass transit system and roads." So, this is why the budget may grow to whatever, 523 million, because we need to make those investments and we can't continue to try to cut, cut, cut. That's not an investment. So in order to see our way through and have a future that we can plan for, I really believe that this is needed, the Page 41 Hawaii County Council-43 June 29,2018 quarter percent increase, and I also believe that we need to go with the timeline that the Legislature allowed us, which is 2030. So, those are my thoughts at this time. Thank you. CHR. POINDEXTER: Okay, any other discussion? Council Member Eoff MS. EOFF: Thank you. And unless the Mayor had something to say first? Did you want to wrap it up or ? I don't have a question. I just wanted to make a couple of statements. MR. KIM: I think we forget and, first of all, thank you. You don't know how much I do want to thank you for the opportunity to come back. In reality after the last time, I thought we're going to have to really dig down and cut at a time more cuts. This is the discussion. I need to point out something that we all know, which is a point of emphasis. We just made mention here what this means if we get just this quarter. It was to maintain the services. What was presented to you was a cut of$5 million or so because the revenues were obviously changed because of what is happening. But we had to cut so many things, proposed cuts to you that you would have to make like we did, very uncomfortable type of cuts. When we say "just maintains," that means we can goI asked the question because my mentality was we had to ask departments to cut three times to present to you a balanced budget. Remember, that was all before the eruption occurrence. That's what we were trying to find. And asking you to understand that if we don't get this, then we cannot even maintain what we have here, which was not maintain the present; it was to cut $5 million more. That's how serious this is. But where I disagree very strongly as time went on, because I have a benefit of present sight instead of hindsight, I really feel the $5 million are going to be very short. Every morning at 7:00, we have a briefing at the Civil Defense Office with all the agencies there. And I'm really trying to stick to the subject, but I assure you it's not that easy when you're involved with that, what's happening every morning and every day. I asked for the count this morning. What is the latest count? Well, we lost two more homes in Kapoho, and that makes 668 homes that we lost. What we never did present to you, because that is not within our damage assessment to justify to the President and the Governor the need for Federal and State assistance, was a loss-of-farm element. That's a tremendous loss that's going on right now in Puna. I'm trying to find ways to see if we can make emergency kittycat roads, if possible, so farmers who slave for a year and more could save some of their papaya or their noni or other things, and which I'm finding very difficult. This one area, I wanted to see if we could help this papaya farmer who is pleading for some way to help him save his papaya crop. The estimate was $668,000 just to kittycat a road, which I don't have. Page 42 Hawaii County Council-43 June 29,2018 I want to emphasize this: The County of Hawaii is in a very difficult situation at this time. I cannot even project what will be tomorrow. The amount of lava that is coming out of Fissure 8I hate the name "Fissure 8." Shouldn't we name it something better than "Fissure 8"? It's something that none of us—none of us refers to all of the geologists—have ever seen before. The loss of direct revenues and indirect revenues because of the closure of the national park is unbelievable. Because of loss of revenues, talking to many of the business personnel in a volcano that depends on the national park, there are cuts of anywhere from 50 to 80 to 90 percent of loss of business. And I think statistics will show you that the Volcano National Park is the second most visited place in the State of Hawaii next to only Pearl Harbor. I don't think that park will ever be opened the way it was. Hawaii Volcano Observatory tells me we should have a tenant there. They're already making provisions to see where they can go. They work with us 24 hours a day now at the Civil Defense Office and are now occupying a space at the University of Hawaii. If you've never seen pictures of Halema`uma`u, you won't recognize that place. That place is so unstable. This is why I meant to say I'm in disagreement with the Finance Department on your projected loss. The $5 million, to me, is going to be a scratch. Please remember what that $5 million represented, sir. It was to balance our budget because our revenues were cut because of the loss of so many things in Puna, not to balance the budget to maintain services that we have now. It was after we cut so much more. Please don't interpret this as lecturing because I'm not. It's a plea to you of how much this island needs for us to stabilize things. Way back when some of you remember when we were going through such an economic crisis in the years 2000-2006, our revenues were short. We borrowed $50 million when we were very short. For what? To build the civic community center; the civic center in Kona, with the rationale that this was the time. This was the time for government to step forward and borrow money so we could stimulate a little bit the construction industry in West Hawaii. That's why the center was built. How it was built, because we borrowed that money. Also, they used the money in regards to Ane Keohokalole Highway, the planning, over a million dollars. This situation is worse that I'm pleading with all of you. Don't look at it as we're just trying to find $5 million. In that very touching letter that is a reality that Ms. Ruggles read, I say to all the poor people that don't want us to raise it, take a look at who's paying it. When we say "regressive-progressive,"we're talking about the tax system that measures what percent of the money you have for Page 43 Hawaii County Council-43 June 29,2018 expenditures was spent for that. It doesn't measure who pays the totality of it because the people with money pays, obviously, much more. Just look at those figures. Probably ten times more. But beyond that, look where the benefits that we propose that they go to, the vast majority of it goes to the poor. Look at the tax system that you have fixed that we really make sure, like the last time we raised the taxes before you of almost 6 percent across the board, but not to the homeowners, not to affordable housing, because that's where our priorities were not to touch. And look where we're spending the money this time. But even putting that all aside, I think this is the time where the Island of Hawaii needs for us instead of cutting services, not only maintain but to even increase. I know how unpopular that is. But as I've told you the last time I was here, every single community that has asked for a meeting with me in the past year and a half or so, basically it was to increase services. Ask the police, whether it be Kona, Hilo, Puna, Ka`u, Kohala, give us more police officers. Well, it's obviously very expensive to do that. I don't care what it is, why aren't you maintaining our parks? Look at how you had to close it because of this or that. I don't want to just maintain the services of this island. Our job is when we come forward to you and the people of this island and we can very proudly say that we feel that this is a very good tax system because of who it addresses and how we're going to spend it. You nine out there know that I do not spend $1 of the budget without your approval. All this insinuation and accusation by some—not by you, by some that you've got to watch us as to how we would spend the money, like last time it was in the paper: "Don't trust Harry Kim and what he says." Obviously, I'm offended, greatly offended, because I take great pride in how we spend their money because you are my check and balance. You know that. In closing at this time, I'm saying 668 homes, not counting all of those things related to farms, are a loss. If you went to the emergency meeting just a couple of days ago, I told them our work has just begun of helping these people. Some of it is going to be a very long-term, difficult task in trying to work with the Federal and State in trying to help the farmers see where they can go from here, of`a`a and pahoehoe which they will never farm in anybody's lifetime here to someplace else where they can continue farming. But 668 homes today and many of which have looked for places to rent or live, so we can come up with programs to make it affordable to them. As I close and speak to you, I know this: There are people that are listening that are saying I am full of it. Why should government help these people? I can show you emails that are asking me to resign because of the ridiculousness of what I am proposing to Page 44 Hawaii County Council-43 June 29,2018 you that we must help these people. I say we must. I say we must not just maintain the services, but there are some we need to increase, yes, the unpleasantness of the cost. All of you know that every community wants more police officers. Look at what we had to turn down to the Chief in his budget to meet this balanced budget, his simple proposal of promotions of certain people. That's part of the 5 million. That's at an increase. That's the Police Chief trying to improve his services, and I'm saying, "No, I can't do it." I have to tell you I think it is time that we really take a look at things and not just maintain. I want to address very heavily our homeless. You know we submitted to you, and I think we are making a head start in it. I want to make a transit system. I want to make a program of improvement in regards to all of the facilities instead of catch up by raising a few taxes after 30 years because we just want to maintain and don't increase taxes. Ladies of the Council and gentlemen of the Council, this County needs your help. We need these revenues. It's not a tremendous amount. It calls for a quarter of a percent that is identified who pays for it. Truthfully, I wish it was a .5 percent so we can make greater strides. I will say this in closing, there are costs coming up next year that I have nothing to do with; you have nothing to do with it. And we're going to have to come back to you to raise taxes again if this is not approved. You know that. You know all of that. That's not a threat. I have very little control of so much of the costs imposed on us. Our job is to find the money to meet those costs. I promised you before, at that time it was a .5, now it's .25, the departments are still the same. You will approve every dollar I ask for. I just make the proposal to you of how I want to spend it. MS. EOFF: Thank you, Mayor. So, I think—you said a lot of what I've been thinking and all of us have heard from our constituents and from just general sentiment in our community for and against a GE surcharge. I understand that the comments are compelling on both sides of that argument. But when we look at the reality—and I believe what you said; we are at a pivotal point and we have this opportunity—it isn't often that we have an opportunity to find another income stream so that we don't completely rely on our real property tax revenue, which is fluctuating and we don't know how much more it will. But because we don't know that, I think relying solely on that revenue stream is dangerous for us at this point in time. We hear loud and clear from our constituents not to cut services, not to let the island go downhill, that yes at a time like this maybe we do need to invigorate some of our infrastructure and some of the things that the GE surcharge could be used for. It's not an easy decision and it took me a while to let go of some of the Page 45 Hawaii County Council-43 June 29,2018 feelings I had before about increasing the GE tax, but I've come to appreciate this compromise and I have supported it. And sure enough, I had many of my constituents who previously had another opinion about it write to me and thank me for being willing to broaden my view and look at how can we benefit as an island from doing this. And so, I think Deanna provided on the back of the communication Ms. O'Hara was reading from, 958.8, a breakdown of the actual costs compared to the benefits. To me, it becomes a lot easier to do and support the quarter percent. Because if you look at an average spending per household, well, she has a range from 10,000 at the lower income levels that households may spend over a year all the way up to 100,000 expenditures over a year, and what the additional quarter percent would add to their already tax, how they're already taxed, it does seem like a small thing to ask to share the cost amongst all of us in order to achieve this good for the community and to benefit from all of the things that we can continue to improve on such as our recycling programs or mass transit. And all that money that is set to Mass Transit in the beginning I realize later on can be used to do the potholes, improve roads, bridges, and fix some of our other road repairs that people in our community need also us to do. And because of the size of the Big Island, those things cost us a lot more than they do on other islands just to keep our roadways in order. So, I just look at this and—for instance, a family who may spend approximately $50,000 a year on things that would be subject to the quarter percent excise tax, it would cost them an average of just a little bit over $11 more a month on top of what they already are spending. So, I believe that is something that people can handle. Maybe the philosophy is one thing but actuality, to me, I believe from a range of just a little bit over $2 a month to the highest spenders or some of the higher spenders that would be charged an extra 22 or $23 a month. I believe it's a fair way to look at it for all the services that you pointed out go equally to the poor and to the richest people of our island. So, I'm still committed to supporting this at this time. I know Ms. O'Hara wants to know about the longer term commitment, and I really feel that we should look at that. And I think when we relook at it again, we're going to see that we're not really in any better situation to handle all of our needs. So, it could be that we would need to extend and take advantage of the deadline that the State has given us. So, I think at this time we really need to be open to adopting this Bill 159. MR. KIM: May I say something, Ms. Poindexter? I know all of us don't want to raise taxes. I don't know anybody who wants to. But I read the email in regards to being very angry with me in regards to the ranger program of Waipi`o Valley because we sent out the memo to all contractual employees that until our budget is Page 46 Hawaii County Council-43 June 29,2018 approved, everyone is suspended until we know what our budget's going to be like. Well, when I read it, I saw your anger because it's such an important program in Waipi`o because of how they wanted control of what's going on. This is not for an ego trip. I want you to know I wrote that program. I wanted to increase that program as time went on, not cut it out. And that's what I mean in regards to there's a point where you just don't want to maintain. We have got to increase and some of it we have to pay for. I just want you to know that, Ms. Poindexter, that I value you fighting for that program, but it was misdirected. I didn't want to cut it. I started that darn thing. MS. EOFF: Can I just summarize before ? CHR. POINDEXTER: Sure. MS. EOFF: So, thank you for that. So, I guess in my closing I would just like to say that I believe that this money is needed here in our community to help us reinvigorate and be vibrant as we continue to deal with our current situation and our loss of property taxes. But I think we do want to provide the level of service that most people here will appreciate. And if this helps, I think it's the right thing to do. Thank you, and thank you for all your work with this, Nancy, and Deanna, who couldn't be here today, and all the people in Finance for helping us to understand different funds and uses that are constrained and where we can make the corrections or moving the funds so that we can balance the budget. And I'm concerned that we do need to balance the budget before too long here `cause we already know there's at least a $5 million gap. So, I really thank you for explaining everything, taking the time to help us all through this. CHR. POINDEXTER: Thank you. Okay, Council Member Chung and then I'll go to Council Member Richards. MR. CHUNG: Since our last meeting, I cast a"yes"vote for an amended bill that I was not too fond of particularly because of the sunset clause, which basically made this increase have vitality for only a year. And it foreclosed, from my view anyway, and I think it was substantiated by the Corporation Council that it would foreclose our ability to later pursue a half percent increase, which is what we really need. So, I've had time to think about that. I mean, I really didn't think about it too much after the vote, but as soon as I heard about the reconsideration move, then I had to start thinking about it: Did I do the right thing? And I'll tell you right now, I'm not really certain I'm going to be voting for it today. I heard the word"compromise," and basically those words came from just a while ago from Ms. Eoff and then the last time from Ms. David. I thought to myself, Page 47 Hawaii County Council-43 June 29,2018 what a strange compromise this was. I mean, and what they pointed—what Ms. David pointed out was the sunset clause as being the compromise. I don't think Ms. Eoff articulated that. But I did hear that from at least one Council Member that, that was a compromise. So, I thought to myself, what kind of strange compromise is this? We gain three people, and we lose two of the most staunchest supporters of this increase. That's not a compromise in my opinion. A compromise was a quarter percent. That is the compromise. If we go for a quarter percent without that sunset clause, I am in 100 percent because I'm willing to compromise. But here—well, therein lies the dangling participle. I have to ask Ms. O'Hara because I was kind of caught by surprise with this move to reconsider. What is your reason for reconsidering this? You were a"no"vote the last time. Are you going to be voting for this with the amendment? It's just a strange thing. CHR. POINDEXTER: Go ahead, Ms. O'Hara. MS. O'HARA: Well, thank you for the question, Mr. Chung, and it is a difficult situation. If we could today remove the amendment, I would feel a whole lot better. But unfortunately, because of time constraints, we're not able to do that today. We have to pass this by tomorrow in order for it to go into effect on January 1, 2019. So, if we were to change the bill, we'd have to have another public hearing, and we don't obviously have time to schedule that if we change this bill in that manner. So, what I was hoping for by asking for a reconsideration, and indirectly I've gotten some indication that this is the case, that the people who did vote for it last time, and I think I understand your position pretty well, but the other three people who did vote for it—yeah, I'm talking about you, Mr. ChungI think I understand your position but maybe not, that the other three who voted for it, I wanted to hear a firm commitment that they are willing to make that motion down the road. It will be through a new ordinance in order to remove that early sunset date, which will trigger another public hearing on this matter, and then we can move forward. And I'm really anxious to hear from leadership of both the Council and the Finance Committee as to whether there is that willingness to move forward. Because, that would make me feel like we have a sound policy basis for implementing this bill today, realizing the constraints of due process doesn't allow us to undertake that in today's meeting. So, that's my answer. MR. CHUNG: Do I still have the floor? CHR. POINDEXTER: Yes. Page 48 Hawaii County Council-43 June 29,2018 MR. CHUNG: Okay, that makes perfect sense. We don't have time to surface an amendment to this bill today; I've got to agree with Ms. O'Hara. Is there a commitment to remove this sunset clause at some point, I mean, in the next few months? If there is none, then I'm going to have to really think about this thing before the time I have to cast my vote. I've been a consistent supporter of this even in the strangest permutations of it, but this might be the straw that breaks the camel's back, really. Thank you. CHR. POINDEXTER: Okay. Council Member Richards. MR. RICHARDS: Thank you, Chair. A couple of things. Unfortunately, we didn't have to be here today. We should've had a package delivered to us. And I agree with Councilman Chung concerning looking at the half percent. As I said before, I could have supported that if that was before us. I think this is the most reconsidered piece of legislation `cause I asked for the reconsideration on the first reading and Councilwoman O'Hara's asked for a reconsideration on the second reading, which should be a pretty clear message to everyone that this thing is very contorted. I think, Mr. Mayor, you gave a great explanation of why my concern for having a plan for the other $5 million is not a good idea. We don't know what's going to be happening in the next six months. And what I am comfortable with is having that $5 million held in the account, and held and not appropriated anywhere. Because, six months from now, we may have an indication that, okay, things have settled down, we're okay, we can take these funds and redirect. Or we may have spent them on things that you articulated, $600,000 for a road grant that's a lot of money for one road. But the point there is we have expenses we don't even know if we're going to have. We haven't even posed the questions. And not having the resources, I understand we're talking about the budget stabilization. I understand about the emergency funds, and those are there for us and it's kind of the buffer in our checkbook to help us. And I agree with your thought process. But if we're going to approve funding coming forward then turn around and appropriate it someplace, and then four months from now, "Oh, we're short of money again `cause we've already spent what we thought was there," I can't support that. I can support a buffer or having the things held in reserve for a minimum of six months. And if I have a commitment from Administration that we're not going to ask for increased appropriations for at least six months until we see where we are, where this is going, and then we have the resources to take care of the community. We're all about taking care of the community; that's why we're here. But I don't want to commit funds with not knowing where we're going to be. So, I can support a 518. Page 49 Hawaii County Council-43 June 29,2018 Mr. Chung brings up a very valid point. I was prepared to support a half percent with the 2030. We're putting a band-aid rather than a fix, and I want a fix. I want to make this County better. I struggle with the fact that this may tie our hands so we can't get the fix; we get a band-aid for a year and a half. And in almost a quintessential government, we kicked the can down the road a little ways, not even very far just a little ways. So, I'm struggling with that. I want to take care of our County. I want to balance our budget. I think we can do this, but I don't want to commit the projected extra funds for at least six months till we know where we are. If we're in good shape, terrific. If we're not in good shape, we've made a very good fiscal attempt to hold things in reserve till we know a little bit better. And so with that, I'm going to yield at this point. CHR. POINDEXTER: Okay, Council Member, uh, DaviI was going to say MedeirosCouncil Member David and then I'll go to Council Member Ruggles. MS. DAVID: Thank you, Chair. Given the discussion with the question that Mr. Chung raised, I just wanted to clarify my position and the compromise as we refer to it. When the proposal came up for a sunset date and a reduction, that was the turning point for my reconsideration of my "no"vote to the GE increase. So for me, the compromise was both of those things, the half percent and sunset date. That's where I was coming from. And now, because it seems to me that the discussion is the sunset date is the deal breaker at this point, my decision to support the quarter percent is still the same. So, Ms. O'Hara, you're asking me to commit to doing something down the line regarding that. What I can tell you is that I will definitely consider the sunset date. That's, to me, at this point to make a commitment that a few months down the line, I will definitely do it. I will bring it. I will definitely be open to discussing that sunset date, whether the situation changes. So, asking me to reconsider it right now or getting me to commit to that, I won't be willing to consider removing it or extending it. That's a future legislation that I really feel uncomfortable about committing to because I really think that what is being asked of me, what I can tell you is bring it before this body again and I will definitely revisit the sunset date. Because, I think that might—at that point in time, the sunset date might be a non-issue, but I don't know that so I can't make a commitment. But I'll definitely consider it down the road. I really think that, for me, if people are going to change their vote based on that, I changed my vote based on both of those things, the reduction and the sunset date, `cause it was suggested through discussions. I will definitely reconsider or revisit the sunset date because I think that might be down the line whether this whole initiative is successful or not. But I'm open, and all I can say is I'm open to a future discussion. Page 50 Hawaii County Council-43 June 29,2018 I do believe that the quarter percent is the most important thing. I will not waiver on that, but I'm open and I will be open for a discussion down the line. And that's where I'm coming from because I think, for me, I think that's the best thing that I can do at this point as far as promising how I'm going to react or support future legislation down the line. I'm not even sure if that's any Sunshine Law violationa commitment to vote. I mean, I can commit that I will be open as I always am to suggestions from fellow Council Members, but to get me to say it right now definitively, I can't do that, but I'm open for discussion. So with that, you wanted to hear my comment, and that's my position. I yield. CHR. POINDEXTER: Council Member Ruggles. Point of Order: MS. RUGGLES: Thank you. I just wanted to express that I'm concerned where this conversation is going and what Ms. O'Hara and Mr. Chung is asking of our colleagues because it appears that you are wanting a commitment for a future vote on a piece of legislation that is currently not before us right now, which I believe is in violation of the Sunshine Law. So, I just that was a point of order on my end. I'm concerned. CHR. POINDEXTER: Thank you. MS. RUGGLES: And I also don't believe it's fair to do that either. Thank you. CHR. POINDEXTER: Council Member Chung. MR. CHUNG: Probably before this vote is taken, I'm going to ask for a recess because, again, this is the first time I've heard—and there's no way that this thing is a violation of Sunshine Law. If you want to file an ethics complaint, go right ahead. I have no problem. But this is not, absolutely not, a violation. I asked something of someone based on what I heard from Ms. O'Hara as being the reason why she brought this up, and I want to know. If nobody wants to answer, that's fine, okay. But I will, as a matter of personal privilege, ask for a recess prior to this because I've got to really think about this. This is news to me. I'm hearing all of this stuff for the first time. This measure is supposed to be something that allows us to look into the future, not something that's supposed to balance the budget, address an emergency. Never was the intent. When we were at HSAC (Hawai`i State Association of Counties) this week, there was a speaker. He was a Council Member from Los Angeles, and he said something that really was relevant to me and it resonated. He said we cannot be satisfied—and I'm going to be paraphrasing, of course—we cannot be satisfied with maintaining our infrastructure of 1950. We have to start taking measures to start building our infrastructure for 2050. Page 51 Hawaii County Council-43 June 29,2018 This is the measure that is going to allow us to do it. But if we have a sunset clause with no assurances that, that clause will ever be removed, it's very difficult for me to approve something like this, I've got to say. `Cause, it flies in the face of my support, my continued support of this measure. So, that's all I've got to say. Oh, one more thing, too. Too bad she's not around because she has been talking about the poorest of the poor and that this measure is a regressive tax. I'll tell you this. It may in theory be a regressive tax, but it's only a regressive tax insofar as we apply it regressively. This money is intended to be used to help the poor through the improvement of our mass transit system. I cannot understand quite frankly, and now I'm getting kind of hot. We are throwing away a golden opportunity here. Anyway, thanks. That's all I have to say about this. Thank you. CHR. POINDEXTER: Okay, Council Member Lee Loy. MS. LEE LOY: Thank you, Chair. I'm going to back up a little bit because everyone knows that I was one of the three Council Members who was a staunch supporter of the half percent. I never wanted to bring a band-aid. I wanted to bring the cure. And for me, I began to hit the hiccups when we didn't have a plan to show our constituency how the money was being spent. And I have to actually thank Nancy Cook Lauer for really articulating that in the article as far as why I said no last time around. And now we have a plan. I'm struggling because it provides a great checks-and-balances. And if we had developed this through the process of the half percent, I think we'd be a lot further along. I'm not sure where all this is going to end up or how this vote is going to fall. But if it doesn't pass, I'm going to chalk it up to an exercise on how to do it better for the half percent. Because, this is one option and, if we don't take this option, the only other option is the half percent. But if we take the quarter percent, we foreclose on the option for the half percent. That's where I stand. I think what I've heard today is a number of opportunities in which the Administration would come forward, and we would hear where the monies are going. It would have to be approved by this body. We would be working collaboratively with the Administration. It's too bad it took this long for us to be here. That's where I stand. In my mind is do we want the band-aid or do we want the cure? So, I'm going to yield. CHR. POINDEXTER: Okay, Council Member O'Hara. MS. O'HARA: Thank you, Chair. Ms. David, you referred to "compromise." Well, compromise takes making a concession on each side of the table. That's how we arrive at compromise. And yes, we compromised on the percentage Page 52 Hawaii County Council-43 June 29,2018 points to get to this bill today. Instead of a half percent, we're only considering the .25 percent. But to compromise on both that and the timelines, the sunset date, that's not a compromise. That means that one side had to give up everything; the other side got two concessions. And so, that's how I see this in terms of reaching a compromise. If we got a commitment that this is important enough—and I think we're hearing from Finance, we're hearing from our Mayor—especially given the nature of this event, I'm sorry I lost the number now, whether it was 668, Harry, homes and growing? And it's going to continue to worsen because of the agricultural impacts, also the businesses in Pahoa. We have six going out of business right now, six businesses going out of business. We have to give tax relief to them as well. Nancy, please pass that on to Lisa. I've been asked by Mainstreet to pass that on. We've lost a fishery, and it was a considerable contribution to the economy in Puna. So, all the jobs lost from all the lost short-term vacation rentals. We're just beginning to see the tip of the iceberg here. And if we can't see how essential this future income is going to be instead of trying to rely 75 percent on property taxes, instead of trying to potentially increase fuel taxes—that's not on the table—that's not going to get us where we need to go. I think it's only fiscally responsible to recognize that this cannot be a short-term measure. So, I again am imploring leadership to lead us where we need to go, which is to provide sufficient funds so that we can plan. And these are activities that will benefit the poorest of the poor. We know what the expenditure plan is to get us a reliable, efficient, on-time bus system, and it's approximately 5 million new dollars per year. We can do that with this quarter percent. I would have preferred the half percent. I'm willing to make that concession, but I am not willing to concede on a shortened timeline. I just can't see that as making any kind of fiscal sense in terms of proper management of the County's finances. We deal with annual budgets, but we also have to have the long view and see how it affects us five years from now or ten years from now. And I think that's a very important perspective that we need to bring here. `Cause if we're just trying to balance the budget, we're going to lose sight of those important goals down the road. So, I continue to ask for a more firm commitment from leadership so that we can move forward. We can't do it today. As I explained when Mr. Chung asked the question, unfortunately we can't because of time constraints. But if we vote this down, if we don't hear those commitments today, and I hear a commitment to voting it down, we're going to be in dire straits here, folks. Dire straits. `Cause, the next chance we have will not take effect until January 2020. So, we will have 18 months of impacted services, 18 months. Page 53 Hawaii County Council-43 June 29,2018 And no, we can't balance the budget on our disaster fund and our other reserve funds. Those are there, and as Ms. Ruggles read, in order to plan for revenue enhancements. That's what budget is. We're doing those revenue enhancements for next year's budget. We may have to draw a small amount, and that information was already provided to us by Finance at a previous meeting, from this year's disaster fund to balance. But it was in the neighborhood of a couple hundred thousand dollars if I remember correctly. It may have gone up from there, but somewhere in that neighborhood. We're not talking about depleting those funds. Thank the Lord for that because, as we move forward, we might encounter more disasters and it may not be in the Puna District. It could be in somebody else's district. So, I think it's very important that we have that long view and proper fiscal management in that longer period. Thank you. CHR. POINDEXTER: Thank you. Council Member David. MS. DAVID: Yes, thank you, Chair. So, before I ask Corp. Counsel regarding this commitment that Ms. O'Hara is asking from, I guess, the three of us who changed their vote to the quarter percent, it just seems to me we are so on the eleventh hour. And the things that we are discussing, to me, cannot be resolved today except with the request Ms. O'Hara is asking, that we commit to changing something that we don't even have before us on this Council. I have a real problem with that because I believe that Ms. Ruggles is right, although Mr. Chung, who's an attorney, might feel very, not intimidated, but because he's an attorney and he's a professional. I don't agree with his assessment, but for me, it just—what happened in the last two weeks regarding this: Let's compromise, go to a quarter percent; will you guys now support it because we need to do something because of this emergency? That's great. That's a great thing. It's successful. Then on final reading, boom: We really wanted 15 percent, I mean, half percent. And so, what we're being, what I feel we're being asked to do right now is to go back to the half percent. So, was all this just to get back to a half percent? I'm sorry, that's the way I'm feeling right now as much as I agree that we need to do something. And that is what my decision was. A quarter percent would help the people in my district and, of course, this island given the emergency. So, I would like to ask Mr. Kamelamela to come up if he can. (Note: At this time, Corporation Council Joseph Kamelamela came forward to address the members of the Council.) Page 54 Hawaii County Council-43 June 29,2018 MR. KAMELAMELA: Good afternoon, Chair and Members of the County Council. CHR. POINDEXTER: Yeah, if you could pull the mic a little further away, there you go, so that doesn't MR. KAMELAMELA: Joseph Kamelamela, Corporation Counsel. MS. DAVID: Thank you, Mr. Kamelamela. You've been sitting there listening to this discussion and the discussion about commitment. The vote today will be dependent on whether myself and other Council Members would consider committing to doing away with the sunset date provision. And you've heard that my concern was about committing at this point in time before we have legislation before us. And to me, I see it as a commitment to vote. I'd like to hear what your opinion is. MR. KAMELAMELA: Thank you very much. This is kind of a unique situation, but we should focus in on a couple of things. One is what is before you now is Bill 159, Draft 2. A vote has been taken. And so, the only thing that's on the table is that bill as it exists now. The second thing to look at too is, generally, you're trying to bind future action. I question that `cause, generally, our office has said that if you are going to make a decision on something, then it should be before you. Right now, the issue of the repeal is not really before you. So, that's one way to look at it. I do agree with Council Member Chung that I don't think it's an ethical violation that's happening now because, generally, you're just talking about how things can play out. But to ask for a commitment, I think that goes a little bit beyond what we should be looking at right now. It's either you deal with what you have before you now as is, and then if this thing doesn't get passed then you look down the road at the other bill. And even that, too, has some risks because I count folks, too, and I'm skeptical about the half percent. So, sorry. Okay. Any other questions? MS. DAVID: No. Well, do you have a question? Do you want me to yield until you ask your question or you're going to ? MS. O'HARA: Are you going to continue with Joe? MS. DAVID: No, I still have the floor. MS. O'HARA: (Inaudible.) MS. DAVID: Yes, go Page 55 Hawaii County Council-43 June 29,2018 CHR. POINDEXTER: Oh, yeah, okay. You'll yield to Ms. O'Hara. MS. DAVID: I'll come back. MS. O'HARA: Thank you. I just wanted to complete the discussion because it's a little confusing, the response. Mr. Kamelamela, when we discuss a bill, we often discuss proposed amendments before they're actually before us. Often, that results in somebody going off and putting that proposed amendment in writing and then bringing it to Council. In this case, we can't make the proposed amendment today because of the requirement for a public hearing. MR. KAMELAMELA: Right. MS. O'HARA: But we have in the past discussed proposed amendments before they hit, I mean, while we're discussing the bill. We have discussed it as that's a possible proposed amendment and then somebody produces it and then we can then introduce that communication. But our discussion includes that proposed amendment. That's kind of what's happening today in my opinion. MR. KAMELAMELA: Right. And that's why I mentioned this is kind of a unique situation. Generally, prior to actually coming down with a final action, you have that in play. But right now, this is it. CHR. POINDEXTER: Council Member David, you may have the floor back. MS. DAVID: Thank you, Mr. Kamelamela. I think that's what I actually wanted to confirm. So, before I yield, I think what we have right now, we're out of time. We have a situation that cannot be resolved. This is the last day of the month that we can do anything. So, my decision today on Bill 159 is going to remain the same because I think what concerns me is what the alternative will be if we don't do anything today. If Bill 159 doesn't pass today then I think we'll be in even more dire straits and our communities are going to suffer. So for today, regardless of whether my Council Members want a commitment or not, I don't feel that I can sincerely and professionally make that commitment. But I will commit to supporting Bill 159 with the quarter percent today. And that is, for me, the best thing I can do personally for the people of my community and for this island given the situation that we're in. So with that, I yield. CHR. POINDEXTER: Okay. Council Member Chung. MR. CHUNG: Quite frankly, none of you three who voted with me the last time owe any of us, myself included, a commitment. But based on what I heard from Ms. O'Hara, I have to ask, right? And I have made commitments on the floor in Page 56 Hawaii County Council-43 June 29,2018 the past,particularly and ironically when Ms. Ruggles brought up the issue of the luxury taxI call it the luxury tax—real property. I said, "You bring that up, I'll commit to voting for it right now." She didn't elicit that from me, but I did it anyway. It's good if we can get glimpses of people's thinking. Right? `Cause, it helps me. Look, we've got to think about this. This was defeated the last time. And all of a sudden, boom, it's back again. Right? I wake up in the morning, hey, it's back. Right? What the heck is going in? I don't have any explanation. So, if someone could at least help me move along, I wouldn't mind. There's nothingI don't think there's anything wrong with someone saying "No, I'll tell you right now, even if you didn't ask, I would tell you right now I would vote against that. I would vote to repeal that provision." Nothing wrong with that. Right? But you guys don't have to do that. But I will be asking for a recess just to gather my thoughts. Thank you. CHR. POINDEXTER: Okay. So, I guess, now I can speak. I don't see any lights on. When the .5 percent first came before us, we were told it would bring in 25 million. Then later on down the road, through some miracle, I don't know what happened at the State level, it became double that amount of 50 million. So, when my constituents and a lot of other people, not just my constituents, were okay with the compromise of.25 because it would still bring in the 25 million that we thought we were going to have during that time, which made a lot of people happy `cause it would help with the budget. So, I'm looking at it as that's a lot of money. I'm also hearing, even from meeting with Finance and all of our discussions and listening to everything here, that a lot of the projects are multi-year projects. So, if we restrict ourselves and put a sunset, then I can see some projects maybe not getting done or things not happening. And each of us in each of our communities, we know we have things that are in such bad shape. We have services that can be so much more improved. I mean, I'll use some examples like the pool, Honoka`a pool. I mean, you have no clue on the people using it: our kupuna for their water aerobics; the kids during the summer, especially now. So, I'm not willing to cut the services from, like I said before, the poorest of the poor in our communities who utilize our facilities. And I hear it. I hear the critical need for funding on projects in our community, and we can't do that without funding. Every year, we're coming up short. So, yes, right now we need this .25. And we need itI can say that we need it for more than just 18 months or whatever it is. Because, 18 months, we know. By the time you put together a plan and all and you just start this, 18 months is not going to take care of all the needs in each of the communities. But if we have a plan on how we move forward and continue with some funding and go back to the Legislature and say, "Can you amend your act so that it includes not only mass Page 57 Hawaii County Council-43 June 29,2018 transit and roads, but it includes all the costs? Open it up so we can pay for more police. Open it up for more fire, protection, life guards, whatever it is that we need that to be opened up." And if we know long-range planning, I understand it's just not 18 months to do something good and think that some miracle is going to happen thereafter that we're going to be smooth sailing because we know costs go up all the time. It just keeps increasing. Costs of materials, labor, everything. So, I like the idea of more long-range planning and open to more multi-year planning projects, which hopefully could remove the sunset date. So without saying that I commit to it, I hope you guys all got the gist of where I'm coming from. Anyway, at this time, I don't see any more lights on and this is the last. I'm going to ask if, well, we'll take a short recess before I ask our Clerk to do a roll call. So, let's do a 10-minute recess. Recess: At 1:52 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 2:04 p.m. CHR. POINDEXTER: Okay, I'd like to call this meeting back to order. Now at this time, we're going to take a roll call vote on Bill 159, Draft 2. Mr. Clerk. MR. CHUNG: I'd like to make a comment. CHR. POINDEXTER: Oh, sure. Council Member Chung. MR. CHUNG: I had some time to think. This is supposed to be one of the most important measures that we ever vote on. I'm going to vote"yes" today. I'm going to be voting "yes" to one of the stupidest bills I ever saw. Really, I've got to say that when you look at it in totality. At least it gives us a chance. We'll see where it takes us. Thank you. CHR. POINDEXTER: Thank you. Council Member Richards. MR. RICHARDS: I'll be short. I have to completely agree with Councilman Chung. This is extremely important for the future of our County, and we are saddled into a situation; we shouldn't be there. And I will be supporting it because we have gotten to a very bad situation that we knew was coming and we chose to go there anyway. CHR. POINDEXTER: Council Member O'Hara. MS. O'HARA: I am going to support the bill today. I am not happy with it as it reads. I think Mr. Chung addressed it properly. This is a very poor piece of Page 58 Hawaii County Council-43 June 29,2018 legislation. It shows kind of a lack of consideration for the fiscal position that the County is currently in. But I also cannot impose the pain and suffering that additional cuts would cause my constituents and all the people living on this island. That's the only reason I'm voting for it because this could have been a much better piece of legislation. Thank you. CHR. POINDEXTER: Thank you. Council Member Lee Loy. MS. LEE LOY: Since we're going to go around the table. I'm going to be supporting this because we have a plan. We have something to hold the Administration accountable for. They're going to have to come back to us as they move monies from fund to fund. We'll have an opportunity to weigh in, direct those monies. It's a safety net for all of us. Yes it's only two years, but who knows? Who knows? Maybe if everybody practices that muscle, exercises that muscle, everybody will get better, we'll have bigger opportunities later on. I just wish this had started back in February. I yield. CHR. POINDEXTER: Thank you. Council Member David. MS. DAVID: Thank you, Chair. And I'm glad Mr. Chung stated that he wanted the chance to talk `cause I thought we were just going to take the vote. But listening to my colleagues, I'm very happy that we are putting what's very important I guess to all of us, no matter what our political positions are and have been, that we're putting the people of this island first. So, mahalo, colleagues, and I yield. CHR. POINDEXTER: Council Member Kanuha. MR. KANUHA: Thank you, Madam Chair, and mahalo for the discussion. I mean, we spoke about this I don't know countless times already. My position hasn't changed since the beginning, and it won't change now. So, I appreciate what you guys are doing. I did want to see some cuts, but I understand the situation at hand. But I continue to not like this tax, and I have stated that the entire time and will continue to state that. CHR. POINDEXTER: Okay, any other discussion? Seeing or hearing none, Mr. Clerk, roll call please. Page 59 Hawai`i County Council-43 June 29,2018 Vote on Bill 159: The motion to pass Bill 159, Draft 2, on second and final (Draft 2) reading was carried by the following roll call vote: (Adopted) Ayes: Council Members Chung, David, Eoff, Lee Loy, O'Hara, Richards, and Chair Poindexter— 7. Noes: Council Members Kanuha and Ruggles—2. Absent: None. Excused: None. (Note: Mr. Richards voted"kanalua"then "aye.") CHR. POINDEXTER: Okay. So, Bill 159, Draft 2, is adopted. Vote on Motion to Ms. David moved to suspend Council Rule 15 to waive the Suspend 5-day hold for reconsideration. Seconded by Ms. Eoff and Council Rules: carried by the following voice vote: (Approved) Ayes: Council Members Chung, David, Eoff, Kanuha, Lee Loy, O'Hara, Richards, Ruggles, and Chair Poindexter—9. Noes: None. Absent: None. Excused: None. ADJOURN- There being no further business, at 2:09 p.m., Ms. David moved to adjourn the MENT: meeting. Seconded by Ms. Eoff and carried by the following voice vote: Ayes: Council Members David, Eoff, Kanuha, Lee Loy, O'Hara, Richards, Ruggles, and Chair Poindexter—8. Noes: None. Absent: Council Member Chung— 1. Excused: None. CHR. POINDEXTER: Meeting is adjourned. Council Approval: AUG $ Zd18 1 . O., CO ' ' CLERK SM/dg Page 60