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HomeMy WebLinkAboutMIN COUNCIL 2018-09-05 2016-2018 Hawaii County Council 481h Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii September 5, 2018 INVOCATION: Jacob Bratton of Hilo Salvation Army Temple Corps gave the morning's invocation. CALL TO The regular meeting of the Hawaii County Council was called to order at ORDER: 9:09 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 (came in later) Ms. Eileen O'Hara, Member (came in later) Mr. Herbert M. "Tim" Richards, III, Member Absent & Excused: Ms. Jennifer Ruggles, Member PLEDGE OF The Chair directed the Council to the next order of business, Pledge of Allegiance. ALLEGIANCE: (At this time, Ms. David led the Council in the Pledge of Allegiance.) PETITIONS, The Chair directed the Council to proceed to the next order of business, Petitions, MEMORIALS, Memorials, Certificates of Merit, and Expressions of Condolence. CERTIFICATES OF MERIT, AND (There were none.) EXPRESSIONS OF CONDOLENCE: 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: Hawaii County Council-48 September 5,2018 Pamela Sokach: Bill 160, Draft 2 (Comm. 959.3), comment. Robert Freitas, Sr.: Bill 160, Draft 2 (Comm. 959.3), comment. Gale K. Perez: Bill 160, Draft 2 (Comm. 959.3), comment. (representing `Aha Hui Punohu `Ula O Kohala Kupuna Council) Rama McIntosh: Bill 160, Draft 2 (Comm. 959.3), comment. Lili`uokalani Ross: Bill 160, Draft 2 (Comm. 959.3), comment. Kale Gumapac: Bill 160, Draft 2 (Comm. 959.3), comment. Keone Kalawe: Bill 160, Draft 2 (Comm. 959.3), comment. Candice J. Hololio Johnson: Res. 654-18 (Comm. 1018), comment. Jason Riessland: Bill 160, Draft 2 (Comm. 959.3), comment. Andrew L Bright: Bill 160, Draft 2 (Comm. 959.3), comment. Nephi Pomaikai Brown: Bill 160, Draft 2 (Comm. 959.3), comment. Sharon Willeford: Bill 160, Draft 2 (Comm. 959.3), in support. Pi`ikea Keawekane-Stafford: Bill 160, Draft 2 (Comm. 959.3), comment. Lakea Trask: Bill 160, Draft 2 (Comm. 959.3), comment. Tammy Harp: Bill 160, Draft 2 (Comm. 959.3), comment. Leilani Lindsey-Kaapuni: Bill 160, Draft 2 (Comm. 959.3), comment. Theodora Akau-Gaspar: Bill 160, Draft 2 (Comm. 959.3), comment. Kuulani Muise: Bill 160, Draft 2 (Comm. 959.3), comment. Robert Yamada: Bill 160, Draft 2 (Comm. 959.3), comment. Dwight J. Vicente: Res. 664-18 (Comm. 1036), comment; Res. 666-18 (Comm. 1041), comment; and Bill 165, Draft 2 (Comm. 989.5), comment. Moses Kealamakia: Bill 160, Draft 2 (Comm. 959.3), comment. Page 2 Hawaii County Council-48 September 5,2018 Alizon Atkins: Bill 160, Draft 2 (Comm. 959.3), comment. Cory Harden: Res. 666-18 (Comm. 1041), in support. (See Comms. 1041.3 and 1041.4) George Pace: Res. 666-18 (Comm. 1041), comment. NoeNoe Kekaualua: Bill 160, Draft 2 (Comm. 959.3), comment. Lynda Saffery: Bill 160, Draft 2 (Comm. 959.3), comment. Gene Tamashiro: Bill 160, Draft 2 (Comm. 959.3), comment. Susan Rosier: Bill 166 (Comm. 995), comment. Nathan Caluag: Bill 160, Draft 2 (Comm. 959.3), comment. Elizabeth Sand Amen: Bill 160, Draft 2 (Comm. 959.3), comment. Marlene Hapai: Res. 664-18 (Comm. 1036), in support. (representing Hawaii Island Portuguese Chamber of Commerce Cultural and Educational Center) Jerry Warren: Res. 654-18 (Comm. 1018), in opposition; and Bill 165, Draft 2 (Comm. 989.5), in opposition. Kate Lilly: Bill 160, Draft 2 (Comm. 959.3), comment. Clare Loprinzi: Bill 160, Draft 2 (Comm. 959.3), in support. Aten Ankh Aalen: Bill 160, Draft 2 (Comm. 959.3), in support. Daynette Kehaulani Golines: Bill 160, Draft 2 (Comm. 959.3), in support. Michele Prevost: Bill 160, Draft 2 (Comm. 959.3), in support. Sara Steiner: Res. 666-18 (Comm. 1041), in support; and Bill 160, Draft 2 (Comm. 959.3), in support. Kaliko Kanaele: Bill 160, Draft 2 (Comm. 959.3), in support. Page 3 Hawaii County Council-48 September 5,2018 Pua`ena Alm: Res. 654-18 (Comm. 1018), comment; Res. 655-18 (Comm. 1019), comment; and Res. 663-18 (Comm. 1035), comment. Kristine Kubat: Bill 160, Draft 2 (Comm. 959.3), comment. Erwin Chase: Res. 666-18 (Comm. 1041), in opposition. Claire Ku`ulei Wilkins: Bill 160, Draft 2 (Comm. 959.3), comment. Brittany Neal: Bill 160, Draft 2 (Comm. 959.3), in support. Josephine Keliipio: Bill 160, Draft 2 (Comm. 959.3), comment. Brent Neal: Res. 664-18 (Comm. 1036), comment; Res. 666-18 (Comm. 1041), comment; and Bill 160, Draft 2 (Comm. 959.3), comment. Recess: At 11:17 a.m., the Chair called for a recess. Reconvene: The meeting reconvened at 11:34 a.m. Change Order As directed by the Chair and with no objection from the Council Members, the of Business: following items were taken out of order: Bill 177: AMENDS SECTION 25-8-19 (NORTH HILO DISTRICT ZONE MAP), ARTICLE 8, CHAPTER 25 (ZONING CODE) OF THE HAWAII COUNTY CODE 1983 (2016 EDITION, AS AMENDED), BY CHANGING THE DISTRICT CLASSIFICATION FROM AGRICULTURAL—TWENTY ACRES (A-20a) TO AGRICULTURAL—FIVE ACRES (A-5a) AT PAPA`ALOA, NORTH HILO, HAWAII, COVERED BY TAX MAP KEY: 3-5-004:023 (Applicant: Charles and Kitura Andrus) (Area: approximately 11.06 Acres) The Windward Planning Commission forwards its favorable recommendation for this change of zone, which would allow the applicant to apply for subdivision of the property into two lots. The applicants currently reside in a home on one lot and plan to convey the other lot to their children. The property is located on Kihalani Homestead Road. Reference: Comm. 1024 Intr. by: Ms. Eoff(B/R) Approve: PC-69 Motion to Approve: Ms. Eoff moved to pass Bill 177 on first reading and adopt Planning Committee Report No. 69. Seconded by Mr. Richards. Page 4 Hawaii County Council-48 September 5,2018 CHR. POINDEXTER: Council Member Eoff MS. EOFF: I believe Mr. Kern is here with the applicant's daughter. (Note: At this time, Zendo Kern, applicants' representative, and Sarah Reynolds, daughter of the applicants, came forward to address the members of the Council.) MR. KERN: Good morning, yes, still morning. Good morning, Madam Chair and members of the County Council. Zendo Kern, planning consultant here representing the applicant. Mr. and Mrs. Andrus are actually on Oahu taking care of their mother. So, I do have the daughter that the property will be getting conveyed to and the keiki as well. So, this is Sarah, if you'd like just to introduce yourself. MS. REYNOLDS: Hi, I'm Sarah Reynolds, the daughter of Kit and Chuck. MR. KERN: We went over this in Committee. It's relatively straightforward, nothing controversial or anything like that. So, I'm happy to answer any questions if there are any. CHR. POINDEXTER: Is there any discussion? Okay, seeing or hearing none all those in favor of Bill 177 say "aye." Vote on Bill 177: The motion to pass Bill 177 on first reading and adopt (Approved) Planning Committee Report No. 69 was carried by the following voice vote: 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. MR. KERN: Thank you all very much, and I hope you have a wonderful rest of your day. CHR. POINDEXTER: Thank you. MR. KERN: Thank you. Page 5 Hawaii County Council-48 September 5,2018 Bill 179: AMENDS ORDINANCE NO. 08-20, WHICH RECLASSIFIED LANDS FROM SINGLE FAMILY RESIDENTIAL - 10,000 SQUARE FEET (RS-10) TO NEIGHBORHOOD COMMERCIAL - 10,000 SQUARE FEET (CN-10) AT WAIAKEA, SOUTH HILO, HAWAII, COVERED BY TAX MAP KEYS: 2-2-036:025 AND 026 (Applicant: Dien-Jung Lin (formerly Dien-Jung Nekoba) (Area: 39,771 square feet) The Windward Planning Commission forwards its favorable recommendation for this amendment to request a time extension for completion of construction and payment of the water commitment fee. The properties are located on Kekuanao`a Street and Hinano Street. Reference Comm. 1026 Intr. by: Ms. Eoff(B/R) Approve: PC-71 Motion to Approve: Ms. Eoff moved to pass Bill 179 on first reading and adopt Planning Committee Report No. 71. Seconded by Ms. Lee Loy. CHR. POINDEXTER: Council Member Eoff MS. EOFF: I believe the applicants are here if anybody has any questions. CHR. POINDEXTER: Okay. Do you have any questions? Any discussion? Seeing or hearing none, all those in favor say "aye." Vote on Bill 179: The motion to pass Bill 179 on first reading and adopt (Approved) Planning Committee Report No. 71 was carried by the following voice vote: 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. Thank you very much for your patience. Page 6 Hawaii County Council-48 September 5,2018 Res. 663-18: REQUESTS THE HAWAII STATE ASSOCIATION OF COUNTIES (HSAC) TO INCLUDE IN ITS 2019 LEGISLATIVE PACKAGE, A RESOLUTION URGING THE LEGISLATURE TO APPROPRIATE FUNDS TO EMPLOY LIFEGUARDS AND TO PURCHASE A LIFEGUARD TOWER AND RESCUE EQUIPMENT FOR KUA BAY AT KEKAHA KAI STATE PARK Requests that the HSAC package include a request to the State Legislature to appropriate funds in the amount of$401,696 for Fiscal Year 2018-2019 to employ four lifeguards and to purchase a lifeguard tower and rescue equipment, with an additional appropriation of$325,696 for Fiscal Year 2019-2020 to continue the program. Reference: Comm. 1035 Intr. by: Ms. Eoff Waived: GREDC (Note: Comm. 1035.1, from Council Member Karen Eoff dated August 31, 2018, transmitting proposed amendments to Res. 663-18, was circulated.) Motion to Approve: Ms. Eoff moved to adopt Res. 663-18. Seconded by Mr. Richards. Motion to Amend: Ms. Eoff moved to amend Res. 663-18 with the contents of Comm. 1035.1. Seconded by Mr. Kanuha. CHR. POINDEXTER: Council Member Eoff MS. EOFF: Thank you. Mahalo to Peter Sur for catching this, but the reso was not drafted correctly. So, this just changes the ending to make sure that it is sent to the HSAC (Hawai`i State Association of Counties) President and Secretary. It also removes some error in the ending and adds a new "WHEREAS" and `BE IT RESOLVED." So, I would like to do that before we go into discussing it. CHR. POINDEXTER: Okay. Are there any questions or discussion on the amendment? Seeing or hearing none, all those in favor of amending 663-18 with the contents of Communication 1035.1 say "aye." Vote on Motion to The motion to amend Res. 663-18 with the contents of Amend: Comm. 1035.1 was carried by the 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. Page 7 Hawaii County Council-48 September 5,2018 CHR. POINDEXTER: Now, we are on the main Resolution 663-18, as amended. Council Member Eoff. MS. EOFF: Okay, thank you. I've been advocating for these monies for a lifeguard and lifeguard stand at Kua Bay for several years now, as well as has the Fire Department. Mr. Kosaki is here, and he can help to explain maybe why it hasn't ever been adopted. It's been positively voted on but it's never been scheduled for a hearing with the Senate Ways and Means Committee, so it's still carrying over to this next legislative session. Correct? (Note: At this time, Battalion Chief Gerald Kosaki, Fire Department, came forward to address the members of the Council.) MR. KOSAKL Yes, thank you. My name is Gerald Kosaki, Battalion Chief overseeing special operations, which includes rescue, HAZMAT (Hazardous Materials), and ocean safety. So, I've been in this position for about nine years now. Throughout the years I've seen a lot of drownings, near drownings, neck injuries, spinal injuries, things like that. Kua Bay, since they improved the area of the parking in the lower area, they've been getting a lot more patrons there. I visited that area a few times and saw so many people there. Especially when there's some waves, it's fairly hazardous because it comes in from a deep ocean down to a shallow reef or shallow sandbar. I'm a strong advocate, and I think the Fire Department is, and very supportive of having water safety officers there or lifeguards there. We've tried to, well, we've supported this measure throughout the years through legislature, but it never really came to fruition. I think one of the main reasons is, of course, money. It's a State beach, so the monies would have to come from State parks, DLNR (Department of Land and Natural Resources). Hopefully, we can somehow sometime get this money, these lifeguards funded. What it includes is it would entail putting up a lifeguard tower. We're allocating at least four lifeguard positions there to provide for days off or vacations. But we always would like to have a minimum of three guards there. So, in the event that there is an incident, we have some backup. In the future, of course, looking at even possibly putting a jet ski there because that has been shown to be a real lifesaver. Does anybody have any questions? I don't have any stats with me right now, but I know over the years we've had a number of spinal injuries that we responded to as the Fire Department and then we also had a few, more than two, cardiac arrest victims, whether it be from drowning or from just some type of medical problem there. The closest fire station, responding station is at least 15 to 20 minutes Page 8 Hawaii County Council-48 September 5,2018 away. So, if somebody goes into cardiac arrest there, their chances of survival are very low as opposed to if there was somebody there such as a lifeguard that would be able to respond in a timely basis. CHR. POINDEXTER: Thank you. MS. EOFF: Okay, thank you. Before I go a little further with discussion, I would like to ask that we suspend our Rule 24(e) because we've amended this reso and I'd like to be able to finish discussing it today and then vote on it. So, if that's the correct motion? MR. RICHARDS: I'll second. MR. MAEDA: To suspend our Rule 24(e)? MS. EOFF: Yeah. MR. MAEDA: You're suspending 24(e)? That's correct. MS. EOFF: Okay, thank you. Motion to Suspend Ms. Eoff moved to suspend Council Rule 24 to waive the Council Rules: holdover for the substantive amendment of Res. 663-18. Seconded by Mr. Richards. MS. EOFF: Yes, because it won't make it into the HSAC package if we don't get it through here today. CHR. POINDEXTER: Okay, any questions, concerns? All those in favor, say Ic aye. Vote on Motion to The motion to suspend Council Rule 24 to waive the Suspend Council holdover for the substantive amendment of Res. 663-18 Rules: was carried by the 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: Council Member Eoff Page 9 Hawaii County Council-48 September 5,2018 MS. EOFF: I just wanted to add to what's been stated. Because the road was recently and in the last few years improved to Kua Bay, it attracts many more visitors and residents than it ever did before. So, the incidents are greater and more now. And so, more than ever, it's important that we make sure that we have ocean safety there. MR. KOSAKL Thank you. CHR. POINDEXTER: Thank you. Any other—Council Member Kanuha. MR. KANUHA: Thank you, Madam Chair. And thank you, Karen, for bringing this back to the table. We've been speaking about this and advocating for the lifeguards and the lifeguard tower at Kua Bay ever since I've been on the Council. It's absolutely insane that the State hasn't provided for the people who use that beach with our lifeguards and safety officers. Over the years, you see drownings. As you stated, all the incidents that's been happening down there, after the road was put in that increased exponentially. And we're really not doing our job by, or the State's not doing their job by providing for the necessary emergency services that are required down there. So, we'll be advocating strongly again this year if this is on the HSAC package. And hopefully, next year during session we can all be on board and finally get the money, the desperate money needed to make this happen. So, thanks to you guys always for being at the Capitol advocating on behalf of our community. CHR. POINDEXTER: Okay, any other discussion? Seeing or hearing none, all those in favor of Resolution 663-18, as amendedoh, do you have a question? Oh, yeah, okay. All those in favor of Resolution 663-18, as amended, please say Ic aye. Vote on Res. 663-18: The motion to adopt Res. 663-18, as amended to Draft 2, Draft 2 was carried by the following voice vote: (Adopted) 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. Page 10 Hawaii County Council-48 September 5,2018 Res. 654-18: AWARDS A PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION MAINTENANCE STEWARDSHIP GRANT TO HO`OMALU KA`U Approves a grant of$58,600 to Ho`omalu Ka`u, a 501(c)(3)nonprofit organization, to protect,preserve, and restore the Kahua Olohu, Kaunamano, Ka`u property (Tax Map Key: 9-5-012:005),pursuant to Section 10-16 of the Hawaii County Charter. Reference: Comm. 1018 Intr. by: Ms. David Approve: FC-132 Motion to Approve: Ms. David moved to adopt Res. 654-18 and Finance Committee Report No. 132. Seconded by Mr. Kanuha. CHR. POINDEXTER: Council Member David. MS. DAVID: Yes, I'd like to ask my colleagues for their continued support on this resolution for the stewardship of this property. Mahalo. CHR. POINDEXTER: Okay, any other discussion? Seeing or hearing none, all those in favor say "aye." Vote on Res. 654-18: The motion to adopt Res. 654-18 and Finance Committee (Adopted) Report No. 132 was carried by the following voice vote: 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. Return to Order The Chair directed the Council to return to the order of business. of Business: APPROVAL The Chair directed the Council to proceed to the next order of business, Approval OF MINUTES: of Minutes. Page 11 Hawaii County Council-48 September 5,2018 Vote on Approval of Ms. O'Hara moved to approve the Minutes of August 17, Minutes: 2016. Seconded by Ms. Eoff and carried by the following (Approved) voice vote: 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. Vote on Approval of Ms. David moved to approve the Minutes of August 8, Minutes: 2018. Seconded by Ms. Eoff and carried by the following (Approved) voice vote: 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. COMMUNI- The Chair directed the Council to proceed to the next order of business, CATIONS: Communications. (There were none.) ORDER OF The Chair directed the Council to proceed to the next order of business, Order of RESOLUTIONS: Resolutions. (Note: Items in this category were taken up previously, out of order.) Res. 655-18: AWARDS A PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION MAINTENANCE STEWARDSHIP GRANT TO KOHANAIKI `OHANA Approves a grant of$25,480 to Kohanaiki `Ohana, a 501(c)(3)nonprofit organization, to protect,preserve, and restore `O`oma Beach in North Kona (Tax Map Key: 7-3-009:004), pursuant to Section 10-16 of the Hawaii County Charter. Reference: Comm. 1019 Intr. by: Ms. Eoff Approve: FC-133 Page 12 Hawaii County Council-48 September 5,2018 Motion to Approve: Ms. Eoff moved to adopt Res. 655-18 and Finance Committee Report No. 133. Seconded by Ms. David. CHR. POINDEXTER: Council Member Eoff MS. EOFF: Just asking for continued support. I think this is going to be a good program, and I'd like to see all of these stewardship grants going forward. Vote on Res. 655-18: The motion to adopt Res. 655-18 and Finance Committee (Adopted) Report No. 133 was carried by the following voice vote: 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. Res. 656-18: AWARDS A PUBLIC ACCESS, OPEN SPACE, AND NATURAL RESOURCES PRESERVATION MAINTENANCE STEWARDSHIP GRANT TO POHAHA I KA LANI Approves a grant of$74,250 to Pohaha I Ka Lani, a 501(c)(3) nonprofit organization, to protect,preserve, and restore the Waipi`o Valley Lookout in Hamakua(Tax Map Key: 4-8-004:006),pursuant to Section 10-16 of the Hawaii County Charter. Reference: Comm. 1020 Intr. by: Ms. Poindexter Approve: FC-134 Vote on Res. 656-18: Ms. Eoff moved to adopt Res. 656-18 and Finance (Adopted) Committee Report No. 134. Seconded by Mr. Richards and carried by the following voice vote: 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. Page 13 Hawaii County Council-48 September 5,2018 Res. 664-18: TRANSFERS/APPROPRIATES AN APPROPRIATION OUT AND FROM A DESIGNATED FUND ACCOUNT AND CREDITS SAME TO A DESIGNATED FUND ACCOUNT TO PROVIDE A GRANT TO THE HAWAII ISLAND PORTUGUESE CHAMBER OF COMMERCE CULTURAL AND EDUCATIONAL CENTER TO ASSIST WITH THE 140TH YEAR COMMEMORATION OF THE ARRIVAL OF PORTUGUESE IMMIGRANT FAMILIES TO HAWAII Transfers $2,000 from the Clerk-Council Services —Contingency Relief account (Council District 6); and credits to the Department of Research and Development, Tourism Promotion account. Reference: Comm. 1036 Intr. by: Ms. David Motion to Approve: Ms. David moved to adopt Res. 664-18. Seconded by Mr. Richards. CHR. POINDEXTER: Council Member David. MS. DAVID: Yes, I'd just like to say thank you to Marlene Hapai for her testimony in support of this resolution, and I ask my Council Members for their support. Thank you. CHR. POINDEXTER: Any other discussion? Seeing or hearing none, all those in favor say "aye." Vote on Res. 664-18: The motion to adopt Res. 664-18 was carried by the (Adopted) following voice vote: 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. Page 14 Hawaii County Council-48 September 5,2018 Res. 666-18: AUTHORIZES THE EMPLOYMENT OF A PRIVATE ATTORNEY AS PART OF AN INTERGOVERNMENTAL AGREEMENT WITH THE STATE OF HAWAII TO REPRESENT THE COUNTY OF HAWAII AND NAMED COUNTY OFFICIALS IN YOUNG VERSUS STATE OF HAWAII, NO. 12-17808 Would allow the County to enter into an agreement with the State of Hawaii to retain the legal services of Mr. Neal Katyal as special counsel, with the State to pay all fees and costs. The County desires to retain special counsel to seek an en bane review by the Ninth Circuit Court of Appeals of its decision published on July 24, 2018, finding that there is a constitutional right to open carry firearms pursuant to the Second Amendment of the United States Constitution and that a portion of Section 134-9 of the Hawaii Revised Statutes violated the Second Amendment of the United States Constitution. Reference: Comm. 1041 Intr. by: Ms. David (B/R) Waived: FC Note: Requires 2/3 vote of the entire membership, pursuant to Section 6-5.5, Hawaii County Charter (Note: Comms. 1041.1 and 1041.2, from Deputy Corporation Counsel Section Chief Laureen L. Martin dated August 29, 2018, transmitting a summary of Mr. Katyal's qualifications and the proposed agreement with the State Attorney General, as well as proposed amendments to Res. 666-18, respectively, were circulated.) Motion to Approve: Ms. David moved to adopt Res. 666-18. Seconded by Mr. Richards. CHR. POINDEXTER: Council Member David. MS. DAVID: Yes, thank you, Chair. I believe Corp. Counsel is here. And given the testimony of the potential for fees in this case for the County to incur, could you please come forward, identify yourself, and clarify the situation regarding fees? (Note: At this time, Deputy Corporation Counsel Kaena Horowitz came forward to address the members of the Council.) MR. HOROWITZ: Sure. Good morning, Council Members. Kaena Horowitz, Deputy Corporation Counsel. The fees you're talking about, are you talking about the fees that Mr. Katyal might be assessing? Yeah? So, the deal that we Page 15 Hawaii County Council-48 September 5,2018 got with the State is the State will be paying all of these costs and, therefore, the County doesn't have to pay anything. I'm not sure if that answers your question, though. MS. DAVID: That does. Perfect. `Cause, there was some concern about expending County funds to hire an attorney. Thank you for clarifying that. I yield. CHR. POINDEXTER: Okay. Any other questions, concerns? Council Member Richards. MR. RICHARDS: Yeah, thank you, Chair. Thanks for being here. Could you just give a real brief synopsis of what's going to happen going forward if we approve this? MR. HOROWITZ: Sure. So, upon approval from—if we were to approve this, then we would be able to enter into an agreement and sign that agreement with the State. And therefore, Mr. Katyal will be representing both the County and the State. At that point, he'd be able to do his thing as we move forward. And I suppose what you're really asking is what's going to happen moving forward. So, as you're aware, the ninth circuit, as a three-judge panel they issued this decision. We disagree with that decision. We'd be able to ask for an en bane review. What an en bane review is, for those who may not know, we're asking the ninth circuit to send, it would be more than 3 judges generally, about 11 judges, and they'd be able to hear the arguments and make a decision, basically. We're hopeful that they would overturn the decision that's been made by the three-judge panel, although of course if they find that it would be upheld, that would be within their right to make that decision. And Mr. Katyal will be representing both the State and the County's position since we believe we are aligned on the substantive issues, and be able to do the full briefing, argue in front of the ninth circuit en banc, assuming they grant an en banc. And from there, I'm not sure if—and after that will be a—we'll see what happens after the ninth circuit enters their decision. MR. RICHARDS: Okay. Thank you, I yield. CHR. POINDEXTER: Any other discussion? Council Member Lee Loy. MS. LEE LOY: With the decision from the Ninth Circuit Court, and I understand it's for the State and the County of Hawaii, that decision would also apply to Maui County and some of the other counties? Is that ? Page 16 Hawaii County Council-48 September 5,2018 MR. HOROWITZ: Ah, yes. The issue that we disagree with is the fact that the three-judge panel, they invalidated part of the HRS (Hawai`i Revised Statutes). So, that statute, it would apply to City County of Maui, Kauai. That's why we're in alignment with the State `cause we're all in the same boat. That part of the statute would be considered invalid if the three-judge panel's decision stands. MS. LEE LOY: Is it necessary for the other counties to join in this or ? MR. HOROWITZ: So, the other counties were not parties to the lawsuit. So, I believe that they may, if they so choose, would file amicus briefs to support but they wouldn't join in. MS. LEE LOY: Thank you. CHR. POINDEXTER: Thank you. Any other discussion? Seeing or hearing none, all those in favor of Resolution 666oh, okay. Go ahead, Council Member David. MS. DAVID: Thank you. Sorry, Council Members. I was just provided this from Corp. Counsel but it's a proposed amendment to this resolution. Basically, oh, let me make that motion and we can discuss it. Motion to Amend: Ms. David moved to amend Res. 666-18 with the contents of Comm. 1041.2. Seconded by Ms. Lee Loy. CHR. POINDEXTER: Council Member David. MS. DAVID: Yes, as stated in the communication, this is to clarify that the special counsel will represent County of Hawaii officials as well as the County of Hawaii. So, one of the whereases that speaks to, that Mr. Young filed a lawsuit against the State, they're adding "and various State of Hawaii officials (collectively," the State, the County of Hawaii, and they're adding "and various County of Hawaii officials (collectively" hereinafter the County, I believe. And then they're deleting "and various State and County officials." So, that's the only amendment that you folks are clarifying for the resolution. So then, I have a question. What Mr. Richards was asking, or Ms. Lee Loy, right? Whether all the other counties are, they would have to do their own, right? This is specifically for Hawaii County? MR. HOROWITZ: Ah, yeah. The lawsuit named the County of Hawaii and certain County officials. MS. DAVID: Okay. Page 17 Hawaii County Council-48 September 5,2018 MR. HOROWITZ: So, the other counties are not parties to this. MS. DAVID: I see. Okay, thanks for clarifying that. So, I yield. CHR. POINDEXTER: Okay, any discussion on amending 666-18 with Communication 1041.2? Seeing none, all those in favor of that amendment say aye. Vote on Motion to The motion to amend Res. 666-18 with the contents of Amend: Comm. 1041.2 was carried by the 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. Vote on Motion to Ms. Lee Loy moved to suspend Council Rule 24 to waive Suspend Council the holdover for the substantive amendment of Rules: Res. 666-18. Seconded by Ms. David and carried by the (Approved) following voice vote: 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. Vote on Res. 666-18: The motion to adopt Res. 666-18, as amended to Draft 2, Draft 2 was carried by the following voice vote: (Adopted) 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. BILLS FOR The Chair directed the Council to proceed to the next order of business, Bills for ORDINANCES Ordinances (First Reading). (FIRST READING): (Note: Items in this category were taken up previously, out of order.) Page 18 Hawaii County Council-48 September 5,2018 Bill 160 AMENDS CHAPTER 2, ARTICLE 15, OF THE HAWAII COUNTY (Draft 2): CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO THE CODE OF ETHICS Amends Section 2-83, Fair Treatment, by adding a requirement that officers and employees of the County provide accurate and factual information to the public to the best of each officer's or employee's abilities and knowledge. Reference: Comm. 959.3 Intr. by: Ms. O'Hara Approve: FC-135 (Note: Comm. 959.4, from Council Member Eileen O'Hara dated August 29, 2018, transmitting excerpts of the January 9, 2018, Board of Ethics meeting, was circulated.) Motion to Approve: Ms. O'Hara moved to pass Bill 160, Draft 2, on first reading and adopt Finance Committee Report No. 135. Seconded by Ms. David. CHR. POINDEXTER: Council Member O'Hara. MS. O'HARA: Thank you, Chair. We have an attachment, Communication 959.4, which I provided to the Council because, at our last hearing on the bill, there was a question about the Board of Ethics meeting where there transpired a discussion between Mr. Tucker and members of the commission regarding the lack of definition or lack of wording in the ethics code relating to provision of factual and accurate information. As I said in our meeting last time, I reviewed it. I can interpret it. It's a bit lengthy in the wording. But if you look at the top of page 29, Commissioner Kahakalau is saying that,pretty much appreciates the suggestion. And towards the end of that same discussion or paragraph, asks that the Board of Ethics be kept apprised of any efforts on the part of Mr. Tucker to advance his wish to see this codified. And so, as a result of that, we have sent over a communication with the Draft 2 of Bill 160 to the Board of Ethics. They won't be meetingI looked and I couldn't see an agenda for this month, so I'm assuming they're not planning on meeting this month but I'm not certain of that. But we did send that over. Unlike other commissions, it's not a requirement that they review and approve a change to the code of ethics but, because of the request to be kept in the loop, we thought it advisable to send it over. So, that's about the only thing that has transpired since our last hearing on this. I will note that we had a lot of testifiers who claimed to be in support of Bill 160, Draft 2, but, listening to testimony, I'm not really clear that they identified the need to truly support this change other than it requires all elected officials, all Page 19 Hawaii County Council-48 September 5,2018 appointed officials, and all employees of the County of Hawaii to be as accurate and factual in their responses to the public as possible, which is something I think we would all like to see. So, thank you. CHR. POINDEXTER: Okay, any other discussion? Are we ready to vote on Bill 160, Draft 2? I guess so. Okay, so all those—should we do a roll call? I wonder if we should do a roll call. Clerk, let's do a roll call on this. Vote on Bill 160: The motion to pass Bill 160, Draft 2, on first reading and Draft 2 adopt Finance Committee Report No. 135 was carried by (Approved) the following roll call vote: Ayes: Council Members David, Eoff, Kanuha, O'Hara, and Chair Poindexter—5. Noes: Council Members Chung, Lee Loy, and Richards —3. Absent: Council Member Ruggles — 1. Excused: None. (Note: Mr. Kanuha voted"kanalua" then "aye.") CHR. POINDEXTER: Bill 160 moves to second reading. Bill 178: AMENDS ORDINANCE NO. 07-166, WHICH RECLASSIFIED LANDS FROM AGRICULTURAL—ONE ACRE (A-la) TO MULTIPLE FAMILY RESIDENTIAL—5,500 SQUARE FEET (RM-5.5) AT WAIAKEA, SOUTH HILO, HAWAII, COVERED BY TAX MAP KEY: 2-3-037:015 (Applicant: Michelle A. Mitchell (formerly Malulani, Inc.) (Area: approximately 1.278 Acres) The Windward Planning Commission forwards its favorable recommendation for this amendment to request an additional five-year time extension to complete construction of a medical clinic on the property. The property is located on Ponahawai Street, approximately 650 feet east of its intersection with Komohana Street. Reference: Comm. 1025 Intr. by: Ms. Eoff(B/R) Approve: PC-70 Motion to Approve: Ms. Eoff moved to pass Bill 178 on first reading and adopt Planning Committee Report No. 70. Seconded by Ms. David. CHR. POINDEXTER: Is Merrick Patten here? I apologize. I should've taken this out of order. I didn't realize. I just got a note saying you're here. So, if Page 20 Hawaii County Council-48 September 5,2018 anyone has any questions, Mr. Patten is here to answer. Are there any questions or concerns? Council Member Richards. Mr. Patten, do you want to come forward? Do we need him? Okay. He's good. Okay. Seeing or hearing none, all those in favor say "aye." Vote on Bill 178: The motion to pass Bill 178 on first reading and adopt (Approved) Planning Committee Report No. 70 was carried by the following voice vote: 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: Bill 178 moves to second reading. ORDER OF The Chair directed the Council to proceed to the next order of business, Order of THE DAY the Day (Second or Final Reading). (SECOND OR FINAL READING): Bill 165 AMENDS CHAPTER 19, ARTICLE 10, OF THE HAWAII COUNTY (Draft 2): CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO REAL PROPERTY TAX EXEMPTIONS FOR DISABLED OR UNEMPLOYABLE VETERANS Effective July 1, 2019, removes the phrase "totally disabled" from Section 19-73, and replaces with "100 percent disabled or 100 percent unemployable, or both." Further amends Section 19-73 to exempt disabled or unemployable veterans from all real property tax, where "totally disabled"veterans are currently subject to the minimum tax provided for in Section 19-90(e). Reference: Comm. 989.5 Intr. by: Mr. Kanuha First Reading: August 8, 2018 Postponed: August 22, 2018 (Note: There is a motion by Mr. Kanuha, seconded by Ms. David, to approve Bill 165, Draft 2.) (Note: Comm. 989.6, from Council Member Eileen O'Hara dated September 5, 2018, transmitting proposed amendments to Bill 165, Draft 2, was circulated.) CHR. POINDEXTER: Council Member Kanuha. Page 21 Hawaii County Council-48 September 5,2018 MR. KANUHA: I continue to support this, and I'll just yield to the rest of the Council. CHR. POINDEXTER: Okay. Council Member O'Hara. MS. O'HARA: In our debate on this bill, we discussed the fact that reducing this to zero sets a precedent that could be followed in many cases by different groups of affected citizens. In that discussion, this all came about as I understand it because we did, in the previous year, raise the minimum property tax from 100 to 200. And in so doing, it impacted many of these veterans. So, Communication No. 989.6 would amend CHR. POINDEXTER: You have to make a motion. Motion to Amend: Ms. O'Hara moved to amend Bill 165, Draft 2, with the contents of Comm. 989.6. Seconded by Ms. David. CHR. POINDEXTER: Council Member O'Hara. MS. O'HARA: The only change this makes to the proposed draft that Mr. Kanuha has prepared is instead of reducing it entirely, the real property tax would be reduced to 50 percent of the minimum tax. So, that is the content of Communication 989.6, and you have it all before you in terms of the other bill, I mean, the 165. So, that is the only proposed change by Communication No. 989.6. So, instead of reducing it to zero, the property tax would be reduced to 50 percent of the minimum tax. CHR. POINDEXTER: Okay, Council Member Lee Loy. MS. LEE LOY: Thank you, Chair. It took me a little while to digest this `cause I'm assuming that if the min. (minimum) tax were changed down the road, some future date, it will still be half. But I had my own conversations with a number of veterans, and they actually were fine with the $200 min. tax. And they actually provided me a list of how much they make, which actually confirms the amount that Mr. Chung spoke of earlier. And actually, what was more valuable to them was the ability that this exemption and holding them at the minimum tax was available to their spouses after they pass. And from what I can understand and maybe, Ms. Sako, since she's here, if you could just confirm that, that the bill actually provides the exemption to be extended to the widow or widower as long as it's continued to be occupied by the veteran who got the exemption. That was actually how our discussions went with the veterans that I spoke with. Ms. Sako? Page 22 Hawaii County Council-48 September 5,2018 (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Council.) MS. SAKO: Hi. Deanna Sako, Director of Finance. Yeah, I believe that's in the original language that's actually in the County Code already. And that's the Section 3 that's on page 2 of the amendment. So, as long as it's used for a home and not for commercial purposes then it would continue to extend. MS. LEE LOY: Yeah. So, based on my discussions, I mean, they all felt the need to pay their fair share at the minimum. But what was of value to them was the ability to transfer that exemption to a widow or widower. And because the language was maintained in the bill, they actually supported paying their fair share like everybody else and holding it at the min. tax. But I'm going to yield at this time. I know Ms. Poindexter also was going to do some due diligence on the amount of disability that they get. So, I yield. CHR. POINDEXTER: Okay, Council Member Chung. MR. CHUNG: Yeah,just so that I can clarify a bit. It's not really on the motion at hand. The last time I came up with an eye-popping amount of$10,000 a month, right, for one person. So, I called the person right after that. I said, "Eh, by the way, you're sure you're making 10,000 a month?" He said, "Yeah, not all disability, though. There's, like, retirements, military retirements." He makes I think about like $3,600 a month, tax-free though, from disability. But then he's got the military retirement, then he's got some other kind of retirements, all came up to $10,000. I said, "Eh, I wish you had told me that earlier." But I called up Ms. David just to make sure. And I had made a lot of disclaimers, too, because we are, after all, for the truth, right? But I just wanted to make that clarification, okay. And then, so now we can continue with the discussion. Go ahead. CHR. POINDEXTER: Yeah. Council Member Richards. MR. RICHARDS: Thank you, Chair. And I'm not sure, Deanna, this may be a question for you. There's something that Councilman Chung brought up earlier concerning transfer of the benefit to the spouse in the event we have a widow or widower. But how does that work if you have someone living in our County with their spouse on active duty, and they become a widow or widower? Does that benefit get transferred to them? You understand where I'm going with the question, Deanna? MS. SAKO: Yeah, I think I understand what you're asking. It's just that I'm trying to figure out, when they die in active service, the benefit extends to the Page 23 Hawaii County Council-48 September 5,2018 widow or widower when they are unemployable or disabled due to service. I'm not positive, and I may need our Corporation Counsel to help interpret if they actually die in service. MR. RICHARDS: I got that. But something that Councilman Chung pointed out was, we talk about someone who's hundred percent disabled and we say they've given all, actually there is one step above that. And I want to be mindful of that because we do have families that are living in our County that have family members in a war zone or whatever you want to say and we lose them. And I think we have one in my district right now. So MS. SAKO: Yeah, I think Corporation Counsel's going to get a chance to look at it. But I think the way it's worded right now is if, due to injuries received. So, if you come home and you're disabled or unemployable, then you get this benefit. MR. RICHARDS: Okay. CHR. POINDEXTER: Anything else, Council Member Richards? MR. RICHARDS: No. CHR. POINDEXTER: Or do you need Corp. Counsel? MR. RICHARDS: Yeah, I'd like Corp. Counsel to weigh in on that. And maybe they're digging into it. CHR. POINDEXTER: Okay. So, let's take a brief two-minute recess. Recess: At 12:21 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 12:28 p.m. CHR. POINDEXTER: Council Member Richards, you had the floor. MR. RICHARDS: Thank you, Chair. So, the question is, as our bill is written now, if a spouse of a veteran who is hundred percent disabled or hundred percent incapacitated, unemployable, that benefit of whatever tax we decide on passes through, the question is if they are a member of the County, the family is, and they are lost in a military action, does that same benefit become part of that family? (Note: At this time, Assistant Corporation Counsel Renee Schoen came forward to address the members of the Council.) Page 24 Hawaii County Council-48 September 5,2018 MS. SCHOEN: Yes. The benefit would extend to the spouse. As long as the veteran was receiving the benefit in that house and that the spouse doesn't subsequently remarry. MR. RICHARDS: And that all makes sense if they remarried. But they were residing within our County when that happened. So if that's the case, then I'm good. All right. Thank you, I yield. CHR. POINDEXTER: Okay, Council MemberI was going to say Council Member MedeirosCouncil Member David. MS. DAVID: Well, they call me "Mr. David" anyway on occasion. So, don't worry about it. Thank you, Chair. I remember our lengthy discussion in Kona. As I told Mr. Chung, I do see his comments and position on this about the issue opening up some floodgates and what's fair and equitable. So, that stuck in my mind, what is fair and equitable. I did get a chance to talk to a few veterans from my district, and one of them was very clear. He's probably in his `60s already, if not more, and he said that everybody should pay their own way or pay something for living in this County. So, based on that, I really think that thank you, Ms. O'Hara, for proposing the amendment because I think that's the sense I'm getting, that everybody should pay something. And it's not that I don't respect and honor all of our veterans. I mean, every one of us have veterans in their families and have veterans that gave the ultimate sacrifice by giving their lives. So, it has nothing to do with that. It's just that I can't get past the fairness and equality of it all. So for right now, I believe I think I can support Ms. O'Hara's proposal on the amendment. So, I yield. CHR. POINDEXTER: Okay, any other discussion? Council Member Lee Loy. MS. LEE LOY: Yeah, Chair, thank you. I know during our discussion we asked the question of how much would we be losing in real property tax revenue. One thing that I was enlightened by our veterans is we have had more veterans. So, all those are World War II veterans, our Korean War veterans are passing on. We're actually going to see more veterans coming in. So, that number that was provided by Finance, ten years down the road with more veterans using this exemption, we might actually see even less revenue. And so, I am back to "everything costs something and we all need to chip in a little bit." And I just wanted to share that because it was a wonderful conversation I had with the veterans. And if there's any piece of legislation I'd like to see, it's those ones who are at the 50 or 30 or 10 percent disability who get very little. But that's where I stand, and I just wanted to share what I got during my conversations. So, thank you, I yield. Page 25 Hawaii County Council-48 September 5,2018 CHR. POINDEXTER: Okay, any other discussion? Council Member Chung. MR. CHUNG: Yeah, I'm going to be voting for this even if I'm probably going to be voting against the main motion again. But I think I've tried to advocate for or at least expressed my concerns about our revenue stream and our ability to provide services. Inasmuch as this is going to be half of what we would be losing with the main bill, I certainly have to support this one over what's provided right now. But I think I'll maintain my position when we get to the main motion. Thank you. CHR. POINDEXTER: Okay, we're on the amendment. So, voting on the amendment number, wait, where are we? We are on 989.6. Okay, so on Communication 989.6 to amend Bill 165, Draft 2,with Communication 989.6. All those in favor, say "aye." Vote on Motion to The motion to amend Bill 165, Draft 2, with the contents of Amend: Comm. 989.6 was carried by the following voice vote: (Approved) Ayes: Council Members Chung, David, Eoff, Lee Loy, O'Hara, Richards, and Chair Poindexter—7. Noes: Council Member Kanuha— 1. Absent: Council Member Ruggles — 1. Excused: None. CHR. POINDEXTER: So, now we are at Bill 165, Draft 2, as amended with the contents of Communication 989.6. Any discussion on—Council Member Chung. MR. CHUNG: Yeah. I wanted to call Renee up again. This is basically the same question that Mr. Richards asked, but I'm wondering, I'm trying to really look this thing over. Where does it say that a widow of a person who—? Point of Order: MR. KANUHA: Madam Chair,just a point of order. Sorry. Before—not to cut you off but because we amended it, this is final reading, we've got to suspend the rules to debate about it. MR. CHUNG: Debate about what? CHR. POINDEXTER: To continue to talk about it, yeah, again. MR. KANUHA: Because we amended it. Page 26 Hawaii County Council-48 September 5,2018 MR. CHUNG: No. This has to do with the overall picture. Because what Mr. Richards talked about was not germane to the amendment. He wanted to know if there was something in the law, the existing law that afforded some relief to widows of CHR. POINDEXTER: Right. So, you can continue. We just want to be able to continue the discussion. So, he has to suspend the rules so that we can continue the discussion because there was an amendment made to the bill. MR. CHUNG: Right. MR. KANUHA: So, our rules specifically say we've got to automatically holdover this bill, correct, without discussion until we suspend the rules? CHR. POINDEXTER: Yes. MR. MAEDA: Yes, that's correct. MR. CHUNG: Oh, okay. CHR. POINDEXTER: What he's going to do is suspend the rules so that you can continue discussion. MR. CHUNG: Okay, well, if not, what would happen? CHR. POINDEXTER: Then we'd have to wait for the next two weeks from now to continue the discussion. MR. CHUNG: Yeah, we can do that, too. Vote on Motion to Mr. Kanuha moved to suspend Council Rule 24 to waive Suspend Council the holdover for the substantive amendment of Bill 165, Rules: Draft 2. Seconded by Ms. O'Hara and carried by the (Approved) following voice vote: 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: Council Member Chung, you have the floor. Page 27 Hawaii County Council-48 September 5,2018 MR. CHUNG: So, Renee, where exactly does it say that the widow of a person who died in action will be afforded benefits? I mean, if you can just point that out to me. Maybe it's included in the definition of the 100 percent disabled. MS. SCHOEN: I believe it's in 19-73, Subsection (a), where it says, "Real property owned and occupied as a home by any person . . . ." MR. CHUNG: See, maybe I'm looking at an oldI'm looking at 19-73, but this is the volume that we have here in the Council. But I noticed that in Mr. Kanuha's bill, he has a Subsection (a). So, I'm guessing, I mean, if that's what you're going to rely on, though, I mean—so are you saying that a person who dies in action is considered 100 percent disabled or hundred percent unemployable? MS. SCHOEN: I'm sorry. I guess I was confused by the question because you're asking with respect to whether they die in action, and I don't think the Code MR. CHUNG: That's what she asked. MS. SCHOEN: Provides anything on that. I understood your question to be, do the benefits extend to a spouse? The exemption that the vet is receiving, does it extend to the spouse? MR. RICHARDS: Chair? CHR. POINDEXTER: Council Member Richards, go ahead. MR. RICHARDS: Councilman Chung is articulating that,probably better than I did, the concern was if we have a family of someone, one of the spouses in active military, and they reside within our County and through an unfortunate situation we lose them, if someone is completely disabled, we give them a, well, we're discussing giving them a tax benefit. But if we take one step beyond that and they are gone because they were killed, we don't recognize the family as being part of that. If they remarry fine. If they weren't living in our County, fine. I get all that part. And I don't think the number would be, hopefully, never very large. But that's what I'm asking. MS. SCHOEN: Yeah, I'm sorry, I was confused by the question. And so, I think you're correct, the Code does not provide for that situation that if they die in action then automatically it would extend to the family. MR. RICHARDS: Okay. MR. CHUNG: Anyway, so, I mean, we can fix that up later maybe if need be. Do we have to hold this over again or what? Page 28 Hawaii County Council-48 September 5,2018 CHR. POINDEXTER: No. We suspended the rules to talk about that. MR. CHUNG: Anyway, I'm going to be, again, voting against this measure. What I've gleaned from these many discussions is that, one—and I certainly applaud Mr. Kanuha for his efforts in this regard but, one, he said it has nothing to do with the affordability. It's basically his and others' intent to bestow some recognition to those persons who paid the ultimate price. Of course, it could be argued that others paid more of an ultimate price. So, affordability is out. What I also heard with regard to the working group is that their task was to come up with a formula that was fair and equitable. And, third, their task also did not take into consideration the financial ramifications of their recommendations. That was for us to decide. So, now it's here. I would say is this. What this does, and I haven't heard any really veteran articulate this, but it really draws or drives a wedge between veterans or disabled veterans specifically because, right now, unless you are a hundred percent disabled veteran, like for example 90I don't know if there's such a thing as 95 percent—or anything less than a hundred, you have to pay regular tax. What I would think the fair and equitable thing to do, and this would actually drive the County broke, but if you had a provision where all disabled veterans would be entitled to the minimum tax to $200 less the percent of their disability. So, hundred percent disabled would go all the way down to zero; 90, you pay only, what, 40 bucks or something like that, and then all the way up. That would be fair and equitable to all disabled veterans. But if we took it to that extent, can you imagine what kind of ramifications that would have to the County? Just off the top of my head, I'm thinking anywhere from 5-$7 million gone. I mean, I'm just talking about it from "fair and equitable." And then in terms of the financial impacts, we're going to be losing about 140 or so thousand dollars a year. Under our amended bill, though, it's less, about 70,000. But where do we recoup that money? At least if there was some kind of suggestion as to where we could get that money back, `cause after all we are tasked with providing services. And yeah, it doesn't look like a big amount, $70,000 in the grand scheme of things when we're talking about a multi, hundred or $500 million budget. But everything adds up. If we keep on giving exemptions here and there and cutting things—it's going to be good to get votes, and I'm not suggesting that that's the motivation, but where does it end, really? So, that's all I'm going to say about this. I'm going to be voting against it. If it passes, well, terrific. But there are some other considerations here. Thank you. CHR. POINDEXTER: Council Member Eoff. Page 29 Hawaii County Council-48 September 5,2018 MS. EOFF: Thank you very much. I understand what everybody's saying, Mr. Chung's position. And it is sometimes hard to make something completely fair and equitable all the way around. But actually, by adopting the amended version now, we're not changing anything because this class was already singled out in our Code to only have to pay the minimum no matter what. I don't know how long it's been that way, but the Code already allowed hundred percent disabled veterans always to just pay a minimum tax. So, what happened was when we raised the minimum, it doubled their tax from 100 to 200 and there were some issues with that. So then Mr. Kanuha brought forth a more extreme version to just always give them a complete zeroed out exemption, which has been the subject of our debate, if that's completely fair or equitable. To some people it is, and to some people it isn't. I was in support of it, but now that we have this amended version, I'm also going to support that because it's now keeping the status quo. So, I don't really feel like the County's losing anything because we're already losing that, but we're still sending a message of support to the veterans who have suffered by trying to serve our country. So, as far as fair and equitable, I think we're doing a very fair thing, and I appreciate the opportunity to express that. So, I don't know. Is that correct, Ms. Sako, we really wouldn't be changing the County's income base because it already was $100 minimum? MS. SAKO: I understand what you're saying and, yes, they were paying a hundred. But when the min. tax went up a couple of years ago, they have been paying the 200 including the current year we're in. So, it would still have an impact. MS. EOFF: Okay, so that's correct. Okay. So, I'm going to support the bill, as amended. Thank you. CHR. POINDEXTER: Okay, any other discussion? Council Member Richards. MR. RICHARDS: Yeah, thank you, Chair. I know you were probably going to make some comments as you were winding up. I'd be curious to hear your comments concerning you speaking to veterans prior to me finishing up my comments. So, I'd like to yield to you for that. CHR. POINDEXTER: Okay. So, I had the opportunity to speak to some veterans but then I also spoke with someone who was doing the services for veterans in the Kona-Hilo. Now, he's in Washington, D.C., at the Veterans Administration. And he said it's on a case-by-case basis because a lot of times you've got to look at what is their continuum of care, their rank. How do you Page 30 Hawaii County Council-48 September 5,2018 determine their monthly pay? Then, you've also got to takeso, I was telling him about this bill—you've got to take into consideration, too, their—for us to look at. It's not their side to look at the debt, the income-debt ratio, that income- to-debt ratio. But all of that kind of stuff, there's so many moving parts and their continuum of care, what they choose to do. A lot of things are covered by the VA (Veterans Affairs). Some may not be. So, it just depends on their disability situation. So, it's hard to just give a number to say how much each veteran would make and could they afford it. `Cause that was my concern, yeah. Do they make enough money to afford it? Some veterans said that, yeah, even if they're a hundred percent disabled that they were able to do some type of work, too, but they needed that to meet some of the debt that they're in. And some of them had young children, too, that—and caring for them, or mommy doesn't work and is caring for kids and then school. So, a lot of moving parts and a lot of factors to take into consideration. So, when Council Member Chung talked about the amount of money, that's what I was looking for is, can these veterans really just keep affording for us to increase or are there other things that we're not taking into consideration that they have? Other expenses that are contributing to some of their maybe not being able to continue paying their mortgage, with kids and all. If we keep increasing things, what does that benefit do for them? And sometimes some people have said every little bit counts. And I can give you the person to talk to if you need to, also. MR. RICHARDS: I appreciate that. So, you're no real consensus one way or another, as far as that goes? CHR. POINDEXTER: Yeah. Like I said, every situation is different. And so, maybe like with what Council Member Lee Loy had spoken to veterans who felt they could afford. I've spoken to some who could afford and some who couldn't afford and then spoke with the VA themselves. And like I said, I can give you that contact if you want it. MR. RICHARDS: Okay. Right. So, I appreciate that, which comes down to what Councilman Chung has talked about being mindful of the decision we make and what is fair and what is equitable. And there is no one size fits all. I think we all can agree on that one, which is the problem and which is problematic going forward. So then, we have to come up with a decision that will address most of it as best we can. I think the points have raised very well. On the one hand, we do owe a debt of gratitude to any of our service people, especially the ones that have been severely injured. But also, we have to be sure that we take care of our County that's taking care of these people with response to the services that we offer. So, with that I'm going to yield `cause I'm still thinking. Thank you. Page 31 Hawaii County Council-48 September 5,2018 CHR. POINDEXTER: Okay. Council Member Chung. MR. CHUNG: Yeah, and I'm glad that discussion just happened because that is correct. There are varying levels of need. So now, if we're trying to recognize a certain class, I have no problem with that. But I don't think we should be divorcing affordability. So, maybe we should come up with a model where we still make them pay the minimum but they can apply for the total exemption based on their need. And I bet you a lot of people won't by applying, but some people will. And if they need it, hey, I've got no problem with us giving them on a case- by-case basis. This may be a little bit more humbug for the Department of Finance but I think that's a model that I would find more palatable. CHR. POINDEXTER: Thank you. I don't know who was first, but I think Council Member O'Hara didn't speak yet. Go ahead. MS. O'HARA: Just in response to the discussion, and I appreciate the discussion in terms of making it equitable. I actually enjoyed your first thoughts on that, Mr. Chung, of doing it to start with the minimum tax and deduct by the percentage of disability. Because, that would affect everyone that's had some kind of level of disability. And I don't think it would be in the millions. My memory doesn't serve that well, but I thought when we raised the minimum tax from a hundred to 200 two years ago, that added 3 million something to the County coffers. Does anybody have a recollection of what the total was? Nobody remembers? Okay. `Cause I don't think it would have as big an impact as you might have thought it would. We've only got 1,200 veterans total, zero percent disabled to a hundred percent disabled right now. So, I don't think that would affect. But it's a good idea, and I like the other ideas that you're throwing out. I'm not saying that one fix is better than any other. I was just attempting to find a more equitable solution to the current bill that's before us, and that's why I offered the amendment. But there are many ways to approach this that could prove to be more equitable. So, I agree. CHR. POINDEXTER: Council Member Chung. MR. CHUNG: Yeah, I just wanted to provide a little bit more information for Ms. O'Hara so that she can make an informed decision. You've got to bear in mind that any disabled veteran who's not 100 percent disabled or unemployable is paying the regular tax. So, the discussion about the minimum tax and how much we gain by virtue of raising it from a hundred to 200, it doesn't apply. We're talking about people who are now paying the regular tax and now are going to be paying minimum, or actually less than the minimum. That's a big impact. I cannot really say how much, but it's going to be big. Page 32 Hawaii County Council-48 September 5,2018 CHR. POINDEXTER: I know that, Council Member Lee Loy, you had your—go ahead. MS. LEE LOY: Ah, yeah, and I just wanted to clarify a little bit. The vets that I did talk to provided me a matrix of how many veterans that they had, which was 1,200, and the varying degrees of disability, hundred percent right down to 10 percent. They spoke in favor of paying their fair share, but I think that just strikes at the heart of them being veterans. They're proud to have served. And they're proud to put in their fair share. They were groomed for that. That's what the military service did for them. And so, Mr. Chung is right. Some of them, they're so proud that if they can pay their way, they will. Speaking to this particular bill, as amended now, compromise is tough. I still think it's much easier for the Finance Department if min. tax is min. tax, it's all the way across the board. `Cause now my concern is, somebody else going come in for a homeowner over 65, "Oh, we're going to do 50 percent of a homeowner's exemption." Like, all of a sudden, this idea of making tiny adjustments can affect all the different tax categories that we have, and that's actually my larger concern. There'll be a justification point of affordable housing, and they're a family of five. So, we're going to make it 50 percent of what the affordable rate is. That's my larger concern with how this amendment is kind of moving through. I still want to hear from the rest of my colleagues. This one doesn'tI'm having a hard time with it. I think keeping it simple is the best way. `Cause if we start dropping in percentages, it just makes it more and more challenging. And then for Deanna, my concern really is how do we project or forecast what type of revenues we will be getting for the next fiscal year? `Cause, we don't know many people are going to apply for the exemption. We don't know how that's going to impact those categories. That uncertainty makes me uncomfortable. So, I yield. CHR. POINDEXTER: Okay, any other discussion? Are we ready to vote? Okay, Clerkoh, Council Member O'Hara? MS. O'HARA: Well, yeah, if you would, I just wanted to ask our Finance Director if she would come forward because, I mean, we've already been given the estimate on what the impact would be from the original language of the bill. And 50 percent is an easy, I believe an easy percentage to apply. Am I correct, Deanna? MS. SAKO: Fifty percent of 200? Yeah, our system can do that. MS. O'HARA: And this is why we've changed—while the original Bill 165 changes the language of the Code from totally disabled to a definition of a hundred percent disabled or a hundred percent unemployable, has that in any way changed how we apply? Page 33 Hawaii County Council-48 September 5,2018 MS. SAKO: Right now, I know however many people have applied for the exemption. I think it was 140,000. So, that would be roughly 700 people that have the disabled veteran exemption. It's when we start talking about other veterans out there that may be partially disabled that I get more nervous because I don't know what that population is. But with just this category, yes, I mean, I kind of know how much it is. But if we were to amend it something further, then I would have great difficulty in planning, yes. MS. O'HARA: Thank you, that's all. Thank you very much. CHR. POINDEXTER: Okay, Council Member Eoff. MS. EOFF: Just remind us how long the minimum tax was at 100. It didn't change for a long time, right? MS. SAKO: Like over 20 years or something like that. MS. EOFF: So, right now if we go with this amended version, those hundred percent disabled vets would drop back down to hundred dollars? MS. SAKO: Correct. MS. EOFF: And that may stay like that for another, if we don't change the minimum, right? I mean, I feel like a hundred dollars is something that was already sort of MS. SAKO: That they were paying previously. MS. EOFF: I mean, they were used to. So, that's why I think I'm good with it. Okay, thank you. CHR. POINDEXTER: Okay. Mr. Clerk, can we do a roll call, please? Vote on Bill 165: The motion to pass Bill 165, Draft 2, as amended to Draft 3 Draft 3, on second and final reading was carried by the (Adopted) following roll call vote: Ayes: Council Members David, Eoff, Kanuha, Lee Loy, O'Hara, and Chair Poindexter—6. Noes: Council Members Chung and Richards —2. Absent: Council Member Ruggles — 1. Excused: None. (Note: Ms. Lee Loy voted "kanalua" then "aye." Mr. Richards voted "kanalua" then "no.") Page 34 Hawaii County Council-48 September 5,2018 CHR. POINDEXTER: Bill 165, as amended, is adopted. Bill 166: AMENDS ORDINANCE NO. 18-68, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2019 Appropriates revenues in the Research and Development Miscellaneous Private Contributions account ($1,200); and appropriates the same to the Essential Air Service Waimea-Kohala Airport -Private account. Funds would be used as a joint effort between government agencies and the local community to ensure the continuity of air service at the Waimea-Kohala airport. Reference: Comm. 995 Intr. by: Ms. David (B/R) First Reading: August 22, 2018 Motion to Approve: Ms. David moved to pass Bill 166 on second and final reading. Seconded by Mr. Richards. CHR. POINDEXTER: Council Member David. MS. DAVID: I will defer to the Council Member from that district, Mr. Richards. CHR. POINDEXTER: Okay, Council Member Richards. MR. RICHARDS: Thank you, Chair. We've actually discussed this numerous times as there's been numerous bills and resolutions brought forward to reflect it. I am wide open for any questions. However, I would ask for continued support as we maintain that needed service in Waimea. I yield. CHR. POINDEXTER: Thank you. Any other discussion? Seeing or hearing none, all those in favor say "aye." Vote on Bill 166: The motion to pass Bill 166 on second and final reading (Adopted) was carried by the following voice vote: 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: Bill 166 is adopted. Page 35 Hawaii County Council-48 September 5,2018 Bill 167: AMENDS ORDINANCE NO. 18-68, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2019 Increases revenues in the Federal Grants - Agricultural Crimes Project account ($106,789); and appropriates the same to the Agricultural Crimes Project account, for a total appropriation of$198,789. Funds would be used by the Office of the Prosecuting Attorney. Reference: Comm. 996 Intr. by: Ms. David (B/R) First Reading: August 22, 2018 Motion to Approve: Ms. David moved to pass Bill 167 on second and final reading. Seconded by Mr. Richards. CHR. POINDEXTER: Council Member David. MS. DAVID: I just ask for your continued support. CHR. POINDEXTER: Any other discussion? Seeing or hearing none, all those in favor say "aye." Vote on Bill 167: The motion to pass Bill 167 on second and final reading (Adopted) was carried by the following voice vote: 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. Page 36 Hawaii County Council-48 September 5,2018 Bill 168: AMENDS ORDINANCE NO. 18-68, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2019 Decreases revenues in the Real Property Taxes account by $3.9 million to address the anticipated reduction in Real Property Tax revenues resulting from devaluation of properties that were either destroyed or rendered inaccessible by the 2018 Kilauea lava flow. The following General Fund accounts are reduced accordingly: Information Technology Other Current Expenses (-$10,105), Planning Other Current Expenses (-$30,000), Business Development-Research and Development (-$10,000), Mass Transit Other Current Expenses (-$2,712,145), Mass Transit Equipment (-$1,050,000), Transfer to Public Access Open Space Preservation Fund (-$78,000), and Transfer to Public Access Open Space Preservation Maintenance Fund (-$9,750). Reference: Comm. 997 Intr. by: Ms. David (B/R) First Reading: August 22, 2018 Motion to Approve: Ms. O'Hara moved to pass Bill 168 on second and final reading. Seconded by Ms. David. CHR. POINDEXTER: I'm sorry. I should have asked MS. DAVID: That's okay. CHR. POINDEXTER: Council Member David. I know this came on from your first reading, so can I call on you? MS. DAVID: Yes, you can. I just ask for your continued support. CHR. POINDEXTER: Okay, any other discussion? Seeing or hearing none, all those in favor say "aye." Vote on Bill 168: The motion to pass Bill 168 on second and final reading (Adopted) was carried by the following voice vote: 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: Bills 168 and 169 are approved, adopted. Mr. Clerk, Bill 170. Oh, I'm sorry, Bill 169. Page 37 Hawaii County Council-48 September 5,2018 MR. MAEDA: I didn't read in 169. CHR. POINDEXTER: 168 is adopted. Mr. Clerk, 169. Bill 169: AMENDS ORDINANCE NO. 18-68, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2019 Establishes a General Excise Tax Surcharge revenue account and appropriates $10 million into this account as anticipated revenue, and establishes and applies these funds to two new General Excise Tax Surcharge Mass Transit expenditure accounts, as follows: Other Current Expenses ($4,412,145) and Equipment ($3,587,855). The remaining $2 million would be appropriated to the Transfer to Capital Projects Fund expenditure account to be used for bus shelters and road improvement projects, including Oneo Lane and the Ane Keohokalole extension. Reference: Comm. 997 Intr. by: Ms. David (B/R) First Reading: August 22, 2018 Motion to Approve: Ms. David moved to pass Bill 169 on second and final reading. Seconded by Mr. Kanuha. CHR. POINDEXTER: Council Member David. MS. DAVID: Yes. In the prior readings this passed, not unanimously, but this passed and I ask for your continued support. CHR. POINDEXTER: Any other discussion? Council Member Richards. MR. RICHARDS: Thank you, Chair. I'm going to urge my colleagues to vote against this. I am completely supportive of the intent of what we did when we raised the GE (General Excise) surcharge to help balance our budget because of the financial position the County was put in. We had a $518 million budget that we had accepted and approved. And then, because of natural disasters because of our lava flows, we lost about $5 million worth of projected revenue coming forward, which put our budget $5 million into the hole. Through the long discussion about the General Excise Tax and whether or not we would actually assign a surcharge to our County, we went back and forth. The long and short of it was we were in a very tough bind. We had a compromise, and we brought that forward. That compromise brought $10 million worth of revenue, not the 5 million,just the 5 million we needed, which was okay because conceptually we had talked about taking the funds and putting them in a holding account because we've got to make sure whether or not the volcano head's going to slow down. Page 38 Hawaii County Council-48 September 5,2018 When we had this conversation back about two weeks ago, we had an impending hurricane coming at us. We had no idea what Lane was going to do. I spoke then and I continue to speak with the same idea, we need to hold something in reserve. Just because we collect it does not mean we have to spend it. Hold that money in reserve. When we took office back in the Fall of 2016, we had a County budget of about 462 million. Approving this raises that to 524 million. If we look at our 523 million, that's an over $60 million raise in 18 months. We keep going up and up and up very quickly. We've had some horrendous impacts of natural disasters, and we still don't even know what our financial obligations are going to be. Chair Poindexter told me about the damage on her roads in her district alone. We've had problems all over. I would encourage the County Council to remember that this is our budget, and we need to exercise the control we need to on it as we go forward. I'm not saying be manini and not spend where we need to, but be cautious before we spend because we only have so many dollars we can spend on different things. Again, appropriating the 5 million right away I think is irresponsible. We need to be mindful of what we need to speak on. The comment was made in the last time at the first reading, when we asked Director Sako if this is what we need to do, she said this was a suggestion from the Administration as to what we can do with the money. Another suggestion is we can hang on to this 5 million and appropriate it at a little bit later time because I'm quite sure, after Hurricane Lane, we're going to have some expenses coming at us that we don't even know yet. We're not even done with the evaluation as of yet. So, I encourage my colleagues to exercise like I said, step the break a little bit, slow down. We don't need to appropriate this money right now. I'm not saying we don't plan for its use in the probably fairly near future but we don't need to appropriate it because if we spend it on something else then we're still going to be short on things. And I don't think that's the appropriate thing to do. So, I will not be supporting this. I haven't supported it since the first time it came through, and I encourage my colleagues to do the same. I yield. CHR. POINDEXTER: Thank you. I don't see any other lights on, so I just want to comment on Council Member Richards and what he said about the road repairs for District 1. So, I'd like to ask if, Deanna, if you could come up. Because, I do understand what Council Member Richards is saying and where he's going with this because we've had millions of dollars assessed. And I don't think we're even complete yet and that's just my district. So, I'm concerned of us taking all this money and throwing it into transit when shouldn't more of this money be going into roads? Or how are we dealing with that? Page 39 Hawaii County Council-48 September 5,2018 (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Council.) MS. SAKO: So, we have done our preliminary assessments. I don't think we're a hundred percent done, but we did enough so that the State has enough to make the request to the Federal government for FEMA (Federal Emergency Management Agency). The last number I heard, we were at roughly 20 million of damage but that, of course, was only public facilities and structures. And so, like you said, many of them are roads and bridges and those types of things, drywells, culverts. I'm sure the number's going to go up, and that doesn't include any State-owned highways or facilities as well. So, we have, like, 2 million going to Transfer to Capital Project Fund. That definitely could be used as our match. `Cause no matter whether we get Federal Highways' assistance to help fix the roads or we get FEMA assistance, our match will still be 20 or 25 percent, depending on which Federal agency. CHR. POINDEXTER: So, where is that—we know that FEMA takes a while to reimburse, and if they even reimburse that amount. We cannot guarantee that amount. So, where would the monies for the repairs, if we're talking about 20 million-plus? So, I'm kind of, like, leaning towards Council Member Richards when he's saying is it smart to just give it all up now or should we be holding on to it until we have a better picture? So, should we postpone this tilldo we have time to, I mean, what is—time is of the essence or can we postpone this to get a better handle on it? MS. SAKO: Okay, so, part of it is that Bill 168 just removed part of Mass Transit from the General Fund. So at a minimum, we need to appropriate that, which is a portion of this $10 million. The other portion was based on the Mass Transit Master Plan. I'm not sure the final has come back to you guys yet, but it will be shortly if it hasn't. So, it was based on that. So, that's also important. But, yes, this money is also an allowable use of the match for anything that is transportation related, meaning the roads, bridges, and those types of things. Other types of things like our emergency costs, probably not. We have other funds to cover those. That initial night, or days, rather, when people were reacting to that. So, one possibility is to amend to add an emergency account much like the Highway Fund, but we are also utilizing that as part of our match for this as well. But until we find out whether it's Federal Highways or FEMA, we won't know for sure. My understanding is we haven't received the final Federal declaration on the permanent work yet, unless I missed it recently. CHR. POINDEXTER: Okay, Council Member O'Hara and then I'll go to Council Member Richards. Page 40 Hawaii County Council-48 September 5,2018 MS. O'HARA: Thank you, Chair. I did have a question for our Finance Director. With regard to the emergencies that we've already experienced since the lava flow, Hurricane Lane and the possibility of others yet to come, what was the level of our emergency fund? We have at least two funds that we can draw from in this case, a rainy-day fund and an emergency fund. What were the amounts when we entered this fiscal year in those two funds? MS. SAKO: Each of them had five point something million and then near 6 million. Part of the disaster fund had a receivable from FEMA, but we also were fortunate that the State gave us 12 million to help with the lava. So, we've been trying to charge our cost against that first. MS. O'HARA: Okay. So, we haven't actually tapped into the rainy-day fund or the emergency fund is what I'm understanding? MS. SAKO: The emergency fund, not yet. Right now, everybody's covering it under their current budget, but we may need to move some between now and the end of the fiscal year depending on how they end up. MS. O'HARA: Obviously we will. So that amount that you say we were owed by FEMA, is that one of these older claims ? MS. SAKO: Yeah, those are older claims, yeah. MS. O'HARA: 2006 or 2014? MS. SAKO: Mostly 2014. MS. O'HARA: Okay. And what would be the sum that we're anticipating? MS. SAKO: The part that's in the emergency fund itself is roughly 7 or 800,000 but there's other receivables, like in the Capital Project Fund, General Fund, Housing Fund, and whatnot. And I didn't bring all of that with me. MS. O'HARA: Okay. Just to have a general idea. So, we are at least perhaps sitting on in the bank at least 10 million? MS. SAKO: Yes. However, at least as it's written right now is our rainy-day fund or Budget Stabilization Fund is for use only when we have a significant decrease in revenues, and we haven't implemented that yet. MS. O'HARA: Okay. Thank you. CHR. POINDEXTER: Council Member Lee Loy. Page 41 Hawaii County Council-48 September 5,2018 MS. LEE LOY: Thank you, Chair. I totally went blank on my question for Deanna. CHR. POINDEXTER: Do you want me to go to Council Member Richards and then come back to you or you want to continue? MS. LEE LOY: Yes. Okay, I know what the question was. You mentioned 2 million to FEMA would be a set aside, and there would be a need for a 25 percent match. If that number went up to $5 million, I'm trying to figure out is it better to have a higher number in which FEMA would need to match so that more money would be coming or ? MS. SAKO: So right now, the damage is 20 million-plus. And historically, like when we had the earthquake in 2006 or other disasters, then we've matched with bond money `cause it's usually permanent damage. And so right now, we're still trying to figure out the full extent. Because doing an initial damage assessment and then going out and looking at the engineering a little bit more, those costs can fluctuate dramatically. So, I don't have, like, any final figures yet. But if it was 20 million in damage and it was FEMA, then our match would be 5 million, yes. MS. LEE LOY: Yeah, I hear what Deanna is saying. There's some monies that we're going to have to cover with Mass Transit, but I'm also thinking about how do we kind of take a step back in light of Hurricane Lane and the damage. I know what I saw in my district and the road repairs that have to happen. And in light of this GE money being one more tool in the toolbelt to use that for road repairs, I'd actually like to see that. And then, I know we're trying to get more money from the State by way of a special session or just more asks. And I want to show them that we have some money, and if they just bring a little bit more, we could accelerate recovery much faster whether it's in Ms. Poindexter's district or with Mr. Chung with some of the bridge repairs. MS. SAKO: And as a reminder, we also have the Highways Fund where the fuel tax and other transportation related revenues are as well. MS. LEE LOY: I'm going to yield. I, yeah, I yield. CHR. POINDEXTER: Okay, thank you. Council Member Richards. Oh, can I go to Council Member Chung first? I don't think he spoke. MR. RICHARDS: Sure, yeah. CHR. POINDEXTER: Council Member Chung. MR. CHUNG: Deanna, these monies have not been realized yet, right? Page 42 Hawaii County Council-48 September 5,2018 MS. SAKO: Ah, no, we won't start collecting these funds until January. MR. CHUNG: Until January, right? So, we have some time to, I mean, or is it a situation where we have to commit some monies to leverage other monies? MS. SAKO: There's some money that we need to just appropriate since we just removed it from the General Fund for Mass Transit. There are other things they would like to do, and at that point they would need to be budgeted before they expend it. But I don't know that they are going to do it before January 1st MR. CHUNG: So, we don't have the money yet, right? MS. SAKO: No, we don't have the money yet. MR. CHUNG: So, we have at least, we have some time to think about this. Because actually, I guess, I don't the more Mr. Richards talks about this thing, the more he starts making sense. I mean, not saying that he didn't make sense. MR. RICHARDS: I will take that as a compliment somehow. MR. CHUNG: I would prefer maybe just deferring this and having us think about it for a little while. `Cause it's not like the money is right here, yeah. I mean, we're in what, September, October, November, three more months, yeah. MR. RICHARDS: I'd be fine with that, but I want to make a comment. MR. CHUNG: But I mean we can still talk about it. But I don't know. But we're at final reading already, right, with this thing? CHR. POINDEXTER: Council Member Richards. MR. RICHARDS: Thank you, Chair. Deanna, and thanks for your input and I get it and I know you have a job to do and I get that, too. I do fully support what your point is at 168, remove 3.9 million. So, we have to balance that budget. And so, we do have to come up with the metrics to take care of that. So, we do that but then that leaves the other, approximately 6 million that I truly believe we need to slow down a bit because, as you offered previously, you said this was a suggestion of how to spend the money. And I got it. It can go into the different roads. MS. SAKO: And it's not just a suggestion, but it's truthfully what we've been telling the community since we went out to every public meeting from the beginning. That's all I wanted to say, is just that this is actually the plan we've been laying out before the public. Page 43 Hawaii County Council-48 September 5,2018 MR. RICHARDS: I understand that to a point. That was before volcano, before hurricane. Now also, it hasn't been mentioned at all is we're talking about rebuilding. We haven't even mentioned talking about rebuilding our economy. If you look at the, what, double digit growth of tourism in our State, except we have double-digit contraction within our own County. We haven't talked about any money gone to promoting the Big Island and offsetting the misinformation of what's going on on the Big Island. MS. SAKO: Can I just add one thing to contribute to that? MR. RICHARDS: Sure. MS. SAKO: My understanding is that the Hawaii Tourism Authority has, I want to say, 1.5 million geared MR. RICHARDS: It's 1.2 I think. MS. SAKO: 1.2, but specifically for our island. So, I'm not saying that's enough or whatnot, but that's definitely going to be a big help to help MR. RICHARDS: It is. All that is going to help. But also, we needed to do some stuff ourselves as well. And so my point again comes back to just being a little fiscally cautious as we have, can't keep up, it was Lane then Marian and now we've got, what, Norman? MS. SAKO: Norman, Olivia, yeah. MR. RICHARDS: So, my point is slow down. So with that, I appreciate kind of slowing down a little bit and doing that. And I think we definitely need to do something for Finance concerning the 3.9 million, and I don't know how you want to handle this here. I would support a deferment to the call of the Chair, a postponement to the call of the Chair but we need to fix something for Deanna. So, how do we do that? MS. SAKO: I'm okay with postponing to the call of the Chair but then I'd like a chance to bring an amendment forward at the next reading to address emergency. And I just want to clarify again because sometimes this is how misconceptions get out there, is like we talk about tourism is energizing the economy. But I want to be clear it's not this fund that's going to do it, not the way it's written right now. MR. RICHARDS: Correct. Page 44 Hawaii County Council-48 September 5,2018 CHR. POINDEXTER: So, Council Member Richards, do you want to just postpone it till the next meeting so she can bring an amendment and then, at that point, you can decide whether or not you want to ask for another postponement to the call of the Chair? MR. RICHARDS: What I would be happy with is I'd support a postponement to the next meeting with an amendment coming forward, going to balance the budget with the 3.9 million, and that the other 6 million being held in a special contingency, not contingency account but County Council to hold on until we can get a little bit better picture. MS. SAKO: We might not actually—can you just give me time to think about it? I'll come forward with an amendment because I am part of what I think I said and I may not have said it out loud was into emergency funding, as well. MR. RICHARDS: No, and I understand that this funding doesn't go but this funding can replace funds coming from the General Fund going into Mass Transit and all that. MS. SAKO: Right. That's the part we for sure need to fix but I'm saying MR. RICHARDS: Yeah, you have to juggle it. MS. SAKO: Not leaving the whole 6 million, we may want to actually appropriate part of it to an emergency account and then it will also give me time to talk to transit to see which parts of the mass transit plan they may have already initiated. MR. RICHARDS: Okay, and I fully support that and as long as we stay in communication, Deanna. MS. SAKO: Mhm. MR. RICHARDS: Okay. CHR. POINDEXTER: So, I know that Council Member O'Hara wants to say something before you make the motion. Do you want to ? MR. RICHARDS: Sure. CHR. POINDEXTER: Okay. Council Member O'Hara. MS. O'HARA: Yes, thank you. This relates to, not so much my district in lower Puna but the district of upper Puna not being represented right now on Page 45 Hawaii County Council-48 September 5,2018 Council. Had a lot of damage from Lane to their private roads. My concern is how is the County in a position to be able to help them? Which of these funds can be expended on private roads, if any? MS. SAKO: None right now. MS. O'HARA: None of it? The emergency fund cannot be expended on private roads? It specifically says that? MS. SAKO: Well, public dollars for public purposes. MS. O'HARA: Public purpose, okay. I know the highway funds can't. So, if we transfer it into the highway funds, it cannot. Is there any way of creating any assistance for those roadways? I don't know about your other districts `cause you might have private roads that are impacted in District 1 as well. Anyway,just a thought. I had to throw it out there. CHR. POINDEXTER: Thank you. MS. SAKO: We'll work with Corporation Counsel to see if there's any loopholes. CHR. POINDEXTER: And so, one thing we've got to remember is in every district we have a lot of private roads and that was, I got calls, were damaged by Hurricane Lane. Council Member Lee Loy, did you need ? MS. LEE LOY: Thank you, Deanna. MS. SAKO: I really do feel like I am sailing Mass Transit under the bus here. MS. LEE LOY: Pun intended. MS. SAKO: So, they're probably ready to hang me. MS. LEE LOY: I feel that we went forward with a GE message and how the monies would be expended. And any type of talking points that the Administration can help share so that, as our constituency says, "Hey, you had this one plan and now you're changing it," I want to help champion those talking points that, because of extenuating circumstances like the lava or like Lane, we had to kind of head in a different direction to maintain some level of normalcy. So if there's, through your next amendment, some talking points that we can begin to share with our constituency so that they can hear from us that we didn't pull a quick one; we were actually looking out for the bigger picture. Page 46 Hawaii County Council-48 September 5,2018 MS. SAKO: Yeah, and I think within the next two weeks or however till the next meeting, hopefully we'll have better estimates on the damage. And again, those damage figures are only for our County public facilities. I don't have the figures for any private damage or statewide damage as well. CHR. POINDEXTER: Thank you. Council Member Richards. MR. RICHARDS: Thank you, Chair. So, thank you very much, colleagues, for the conversation. I'm actually going to be out of town for the next meeting, so I'd like to postpone this to the October 3rd meeting. And between now and then, Deanna, you and I can MS. SAKO: Ah MR. RICHARDS: Is this going to be problematic? MS. SAKO: Well, we just took away transit's budget. So, I have to put something back in there. I was willing to wait two weeks. I'm not willing to wait four. CHR. POINDEXTER: Can I ask this? If you come back and MS. SAKO: We need to at least put back the part we took out from transit. MR. RICHARDS: Okay, let's do it in two pieces then. MS. SAKO: Maybe we can do it in two pieces or something. Yeah, we'll figure it out. MR. RICHARDS: Yeah, let's do it that way. I'm good with that. CHR. POINDEXTER: So, you want to postpone it to the next one and then we know, as your colleagues, what your intentions were and for us to follow through with that? MR. RICHARDS: Yup. So in two weeks, not refund but reallocate 3.9 to Mass Transit. Actually, it's not all for Mass Transit, but whatever's taken. MS. SAKO: Yeah, I stillI want to do what's best for the County and I realize Mr. Richards won't be here. But at the same time, if we feel it's prudent to put some in the emergency account or whatnot, then MR. RICHARDS: I'm fine with that, if we could MS. SAKO: We're going to have to do that as well. Page 47 Hawaii County Council-48 September 5,2018 MR. RICHARDS: So, let's have a conversation. There's plenty of time to talk story, and I can give you my input there. Put some in emergency, put some back to Mass Transit, and hold the balance. And we can do that for October 3rd. I'm good with that. `Cause, I want to do what's best for the County as well. CHR. POINDEXTER: Okay, so what we're doing is postponing this Bill 169 to the next Council meeting. What date is that? MR. MAEDA: September 19'h. Vote on Motion to Mr. Richards moved to postpone Bill 169 to September 19, Postpone: 2018. Seconded by Ms. Lee Loy and carried by the (Approved) following voice vote: Ayes: Council Members Chung, David, Eoff, Lee Loy, O'Hara, Richards, and Chair Poindexter—7. Noes: Council Member Kanuha— 1. Absent: Council Member Ruggles — 1. Excused: None. Bill 170: AMENDS CHAPTER 24, ARTICLE 10, DIVISION 2 OF THE HAWAII COUNTY CODE 1983 (2016 EDITION, AS AMENDED), RELATING TO MOVING VEHICLES Amends Section 24-264, Schedule 12 (Stop intersections), paragraph (a), Hamakua, by adding "Hauola Road, Pohakea Road intersection, all approaches." The proposed all-way stop will allow for cars to still park along Hauola Road and minimize the line of sight requirements at the intersection. Reference: Comm. 998 Intr. by: Ms. Ruggles (B/R) First Reading: August 22, 2018 Vote on Bill 170: Ms. Eoff moved to pass Bill 170 on second and final (Adopted) reading. Seconded by Ms. David and carried by the following voice vote: 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: Bill 170 is adopted. Page 48 Hawaii County Council-48 September 5,2018 Bill 180: AMENDS ORDINANCE NO. 18-68, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2019 Appropriates revenues in the State Grants —Workforce Innovation Opportunity Act account ($4,063); and appropriates the same to the Workforce Innovation Opportunity Act—Sector Partnership Engagements account. Funds would be used by the Hawaii Island Economic Development Board to engage with the private sector to identify employment and training needs. Reference: Comm. 1031 Intr. by: Ms. David (B/R) First Reading: August 22, 2018 Motion to Approve: Ms. David moved to pass Bill 180 on second and final reading. Seconded by Ms. Eoff CHR. POINDEXTER: Council Member David. MS. DAVID: I would just ask for your continued support. CHR. POINDEXTER: Any other discussion? Seeing or hearing none, all those in favor say "aye." Vote on Bill 180: The motion to pass Bill 180 on second and final reading (Adopted) was carried by the following voice vote: 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. Bill 181: AMENDS ORDINANCE NO. 18-68, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2019 Appropriates revenues in the Federal Grants —Risk and Vulnerability Assessment —Volcanic Hazard account ($225,000); and appropriates the same to the Risk and Vulnerability Assessment—Volcanic Hazard account. Funds would be used by the Department of Research and Development to update the volcanic risk and vulnerability assessment of the Hawaii County Multi-Hazard Mitigation Plan. Reference: Comm. 1032 Intr. by: Ms. David (B/R) First Reading: August 22, 2018 Page 49 Hawaii County Council-48 September 5,2018 Motion to Approve: Ms. David moved to pass Bill 181 on second and final reading. Seconded by Ms. Eoff CHR. POINDEXTER: Council Member David. MS. DAVID: Just ask for your continued support. Mahalo. CHR. POINDEXTER: Any other discussion? Seeing or hearing none, all those in favor say "aye." Vote on Bill 181: The motion to pass Bill 181 on second and final reading (Adopted) was carried by the following voice vote: 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. Vote on Motion to Ms. David moved to suspend Council Rule 15 to waive the Suspend Council 5-day hold for reconsideration. Seconded by Ms. Lee Loy Rules: and carried by the 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. REPORTS: The Chair directed the Council to proceed to the next order of business, Reports. PC-68 NOMINATION OF FRANZ WEBER TO THE KONA COMMUNITY (Comm. 1027): DEVELOPMENT PLAN ACTION COMMITTEE Requires Council Confirmation by: September 17, 2018 (Section 13-4(1), Hawaii County Charter) Page 50 Hawaii County Council-48 September 5,2018 Vote on PC-68: Mr. Kanuha moved to adopt Planning Committee Report (Adopted) No. 68. Seconded by Ms. O'Hara and carried by the following voice vote: 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. AWESC-6 NOMINATION OF GEORGE DONEV TO THE GAME MANAGEMENT (Comm. 1028): ADVISORY COMMISSION Requires Council Confirmation by: September 17, 2018 (Section 13-4(1), Hawaii County Charter) Vote on AWESC-6: Mr. Richards moved to adopt Agriculture, Water and (Adopted) Energy Sustainability Committee Report No. 6. Seconded by Ms. David and carried by the following voice vote: 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. REFERRALS FOR The Chair directed the Council to proceed to the next order of business, Referrals EXECUTIVE for Executive Session. SESSION: (There were none.) OTHER The Chair directed the Council to proceed to the next order of business, Other BUSINESS: Business. (There were none.) ANNOUNCE- The Chair directed the Council to proceed to the next order of business, MENTS: Announcements. (There were none.) Page 51 Hawaii County Council-48 September 5,2018 • ADJOURN- There being no further business, at 1:35 p.m., Ms. O'Hara moved to adjourn the MENT: meeting. Seconded by Mr. Richards and carried by the following voice vote: 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: Meeting is adjourned. Council Approval: O C T 0 3 ?018 Ago COUNT VLERK SM/dg Page 52