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HomeMy WebLinkAboutMIN FC 2019/01/22 2018-2020Committee on Finance 2nd Session West Hawaii Civic Center 74-5044 Ane Keohokaloele Highway, Building A Kailua-Kona, Hawaii January 22, 2019 CALL TO The regular meeting of the Committee on Finance was called to order at 10:30 a.m., ORDER: in the Council Chambers, Kona, by Ms. Maile Medeiros David, Chair. R(1T T CAT T Present: Ms. Maile Medeiros David, Chair Mr. Herbert M. "Tim" Richards, Vice Chair Mr. Aaron S. Y. Chung, Member Ms. Karen Eoff, Member Mr. Matt Kaneali`i-Kleinfelder, Member Ms. Ashley L. Kierkiewicz, Member Ms. Susan L. K. Lee Loy, Member Ms. Valeri T. Poindexter, Member Ms. Rebecca Villegas, Member STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: The Chair called Abelghassem Abraham Sadegh who registered to speak in regards to comment on Comm. 29, and came forward when called. COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Order of Resolutions. Comm. 9.4: MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED OCTOBER 31, 2018, FROM THE DEPARTMENT OF FINANCE From Finance Director Deanna Sako, dated December 28, 2018, transmitting the above report pursuant to Hawaii County Charter Section 6-6.3(h). Vote on Comm. 9.4: (Filed): Ms. Poindexter moved to close file on Comm. 9.4. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 9. Noes: None. Absent: None. Excused: None. FC -2 January 22, 2019 Comm. 10: REPORT OF CHANGE ORDERS AUTHORIZED: OCTOBER 1 — 15, 2018 From Finance Director Deanna Sako, dated October 30, 2018, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Postponed: January 8, 2019 (Note: There is a motion by Mr. Richards, seconded by Ms. Lee Loy, to close file on Comm. 10.) (Note: At this time, Acting Public Works Director David Yamamoto came forward to address the members of the Committee.) CHR. DAVID: Thank you, Mr. Clerk. Any further discussion? Mr. Richards, go ahead. MR. RICHARDS: Yeah, thank you, Chair. I knowI don't want to put words in her mouth, but Council Woman Kierkiewicz also had some questions on the Change Order, so I think were expecting a report or someone to come to discuss with us in Hilo Chambers. Is someone there? CHR. DAVID: Yes, we have Kay Oshiro I'm told, from Finance, in our Hilo office. Deanna Sako is off -island. She's on Oahu. MR. RICHARDS: Okay. Yeah, just an update on the questions that we had. CHR. DAVID: David Yamamoto. Yes, Director. (Note: t this time, Acting Public Works Director David Yamamoto came forward to address the members of the Committee.) MR. RICHARDS: I'll go first. My questions, it had to do with the Change Order for the Alii Drive culverts. I just want an update because there's a substantial increase as far as what the initial budget was, 500 percent. So, I just wanted to know the scope. What was the big change? CHR. DAVID: Thank you very much. Director Yamamoto. MR. YAMAMOTO: Good morning. I'm David Yamamoto, Acting Director of Public Works. CHR. DAVID: Good morning. MR. YAMAMOTO: Regarding the Alii Drive culvert, this project was imitated back in 1998. The original consultant contract covered basically a preliminary design and planning, which included the archaeological and environmental assessments and permits. It dragged along over the numerous Page 2 FC -2 January 22, 2019 years. There are some additions, small additions, to cover the escalation of the cost. More recently, when it became more apparent or committed to going forward with the project, the substantial increases is attributed to getting the consultant to do the detailed design required and some additional traffic control plans as well as some environmental laws that changed. Then we had to do further work or ask the consultant to do further work to acquire the necessary permits to proceed with that project. So the original contract covered just the preliminary design, and the more later one which caused a substantial increase was for the detailed design and update of the environmental permits and traffic control. MR. RICHARDS: A follow-up on that. Am I understanding? You said the initial was proposed back in 1998, so this has been a process for 20 years and the culvert has yet to be changed. Is that what I'm understanding? MR. YAMAMOTO: Correct. MR. RICHARDS: Wow. And the scope was expeaded without putting this out to bid? How was this contracted? MR. YAMAMOTO: This is a consultant contract. Just the consultant contract portion that this change order occurred. MR. RICHARDS: I think you can understand my questioning this. I can understand we have over -runs, I can understand environmental stuff, but when we have a 500 percent current level, it sure raises flags. I'll yield at this point. CHR. DAVID: Thank you, Mr. Richards. Anyone else? Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you. And maybe I can help Mr. Richards on this one. Mr. Yamamoto, this is a STIP (State Transportation Improvement Plan) project, we actually bring in a portion of it. Is this our portion or is this the total cost of the amount for the change order? That's the total amount of the contract for the consultant contract, so we would be responsible for 20 percent. CHR. DAVID: Director Yamamoto, did you hear Council Member Lee Loy's question? MR. YAMAMOTO: I believe so. She asked if this was our share or the CHR. DAVID: We can't hear you. Page 3 FC -2 January 22, 2019 MR. YAMAMOTO: She asked if the change order amount was for our share. No, that's the total contract. So it is a STIP project, which we would be reimbursed the 80 percent. MS. LEE LOY: Mr. Yamamoto, why don't you start again. We had a hard time hearing you from the beginning. MR. YAMAMOTO: Regarding the cost of this contract, yeah, it is a STIP project. So what you see here in change order amounts is for the entire contract amount for the consultant and the change orders that were associated with it. That is part of the STIP project, where the County share of that would be 20 percent. MS. LEE LOY: Sorry, these numbers are so small. MR. YAMAMOTO: $832,000. MS. LEE LOY: Just so we can clarify, the $800,000, that's the whole total; but because this is a STIP project, the County will be reimbursed 80 percent of that. Is that an accurate portion? MR. YAMAMOTO: Correct. MS. LEE LOY: Perhaps you and Mr. Richards can put your heads together and actually show him what the cost of the County will be for this particular project. MR. YAMAMOTO: Okay. MS. LEE LOY: Because it is, as Mr. Chung would put it, an eye-popping number. I do have a follow-up question, and this is in regard to Kalanianaole. Mr. Yamamoto, could you provide me a quick status update on that project? This is another project that was started in June of 2017, and I know we experienced some delays just getting that project started. But could you provide me with a little update on this project? MR. YAMAMOTO: Yes. The project initially involved just improving and reconstructing the road. Then it became apparent that the harbors required additional fire -flow for their projects that they have and have planned. So we included with the project a waterline. A 12 -inch waterline to provide the necessary fire -flow water required to support DOT's (Department of Transportation) project in the harbor area. That added six months to the project, which is currently scheduled for completion latter of 2020. Page 4 FC -2 January 22, 2019 MS. LEE LOY: And then, Mr. Yamamoto, because this waterline project is being tacked on, is that a cost to the County or is the State bringing their funds to help fold in the waterline project? MR. YAMAMOTO: I'm not sure of that. I believe I heard that the State was including the waterline into the project, and they're paying for that portion of the work. MS. LEE LOY: Thank you. My final question. You know, this is down in my district and we have a lot of community members who are getting stuck in the traffic. One idea they had was to provide, you know, a loop around, through Silva Street; which would take the community members into Keaukaha along what we call Blue Lights, and then back out along Kalanianaole. Has any though been given to that? Or what's the plan for helping relieve some of the traffic congestion in that area? MR. YAMAMOTO: That has been looked at, the one-way loop. But at current, that would be an additional cost to the County, being that it was not included as the traffic control requirement that was included in the original contract, so we did a preliminary estimate. It appears to add the traffic control required to maintain that one-way loop, and it would cost an additional $1,500 a day. MS. LEE LOY: Do we know how many more days that we would have to add on this $1,500 a day to help expedite the process? MR. YAMAMOTO: If we're going to maintain that one-way loop for a 24/7, the County would be responsible for approximately a year and a half of that traffic control addition. MS. LEE LOY: Well, thank you, Mr. Yamamoto. Maybe we can continue this conversation and look for other alternatives, and maybe walk it back to just peak traffic times or something. But your door is open, I'm willing to sit down and talk to you about some other alternatives. I yield the floor. Thank you. CHR. DAVID: Thank, you Ms. Lee Loy. Anyone else? Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair David. I was just wondering if anybody from the Finance Department is in Hilo available to answer questions about Animal Control Services for Police? (Note: At this time, Purchasing Agent Sebastian Callaway came forward to address the members of the Committee.) MR. CALLAWAY: Yes, good morning. Sebastian Callaway, Purchasing Agent. Page 55 FC -2 January 22, 2019 MS. KIERKIEWICZ: Hi Sebastian. Good to see you. If you could just help me understand this contract. I see that it was originally awarded in 2013, and so far the County has paid to the Humane Society $9.169 million, which is about $1.8 million a year. I'm wondering how long does this contract last? I mean, to me it's kind of eye-popping, $1.8 million to control animals. I'm wondering, is this program effective? Is Humane Society coming up for a contract review? Any information you can provide would be helpful. MR. CALLAWAY: I can answer that. The original contract was for a nine-month period. And then we've exhausted four one-year options, and we are now on the second of two six-month extensions while we develop the RFP (Request for Proposal), which should be going out shortly in answer, to their contract coming up for review, at which point it would be open for proposals. MS. KIERKIEWICZ: So when is their contract up for review? MR. CALLAWAY: We're developing the specs. right now, between the Purchasing Division and the Police Department, and I'm hoping that we'll have the RFP published in the next couple of weeks. MS. KIERKIEWICZ: Okay. And then the two six-month extensions, when does the second one run out? MR. CALLAWAY: The second one ends at the end of March, and excuse me, it's a three-month extension not a six-month. MS. KIERKIEWICZ: Okay, are you able to provide any information as to, like, the metrics for how this program is working? How effective it is? MR. CALLAWAY: I can't answer the effectiveness. You would need to speak with the Police Department on that. MS. KIERKIEWICZ: Okay, thank you. Thank you, Sebastian. Madam Chair, you have the floor. CHR. DAVID: Thank you, Ms. Kierkiewicz. Anyone else? Council Members? Alright, seeing none, all those in favor of filing Communication 10 please say "aye." MR. RICHARDS: One. CHR. DAVID: Opposed? Okay. Page 6 FC -2 Vote on Comm. 10 (Filed): The motion to close file on Comm. 10 was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Villegas, and Chair David — 8. Noes: Committee Member Richards — 1. Absent: None. Excused: None. January 22, 2019 Comm. 10.4: REPORT OF CHANGE ORDERS AUTHORIZED: DECEMBER 1 — 15, 2018 From Finance Director Deanna Sako, dated January 3, 2019, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Vote on Comm. 10.4: Ms. Villegas moved to close file on Comm. 10.4. (Filed): Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 9. Noes: None. Absent: None. Excused: None. Comm. 29: REQUESTS A PRESENTATION BY THE DEPARTMENT OF HUMAN RESOURCES TO PROVIDE STATUS OF COMPLIANCE WITH THE RECOMMENDED ACTIONS FOR HIRING PRACTICES AS OUTLINED IN AUDIT REPORT 2017-03 FROM THE OFFICE OF THE LEGISLATIVE AUDITOR From Council Member Susan L. K. Lee Loy, dated November 13, 2018. (Note: Comm. 29. 1, from Human Resources Director William V. Brilhante, Jr., dated January 17, 2019, was circulated). Motion to Close File: Ms. Lee Loy moved to close file on Comm. 29. Seconded by Ms. Kierkiewicz. CHR. DAVID: Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Chair. In our packets, we have Communication 29. 1, from William Brilhante, Director of Human Resources, and it's really requesting that we postpone this matter until February 4. He was called away to do an arbitration hearing. So with that, I'd like to make a motion to postpone Communication 29 to our February 4 1 Finance Committee meeting. Page 7 FC -2 January 22, 2019 Vote on Motion to Ms. Lee Loy moved to postpone Comm. 29 to Postpone: February 4, 2019. Seconded by Ms. Kierkiewicz and (Approved) carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Mr. Clerk, Order of Resolutions, please. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 30-19: AUTHORIZES THE ACCEPTANCE OF MONETARY DONATIONS TOTALING $170,355 FOR DISASTER RELIEF FROM THE 2018 LAVA FLOW Accepts donations from various private sources, as follows: Puna Geothermal Venture ($150,000), Tokyoto Oshimamachi ($18,274.22), Saishoin Temple ($2,000), and Sister City Mayor Inoue ($80.44). Funds would be used to help offset costs incurred relating to the 2018 lava disaster in the lower Puna region. Reference: Comm. 52 Intr. by: Ms. David (B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 30-19. Seconded by Mr. Kaneali`i-Kleinfelder. CHR. DAVID: Discussion, please, Council Members? Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. Is there anyone from the administration or the Recovery Team in Hilo available to speak on Resolution 30-19? (Note: At this time, Controller Kay Oshiro came forward to address the members of the Committee.) MS. OSHIRO: Hi. I'm Kay Oshiro, the Controller for the County. MS. KIERKIEWICZ: Hi, Kay. Good to see you. I was just curious. You know, this resolution says that funds would be used for a disaster relief as a result of the 2018 lava flow in Puna. Sothis is a $170,000 that we have; we have $10 million from the Governor's office along with $4.8 million from the original $12 million Page 8 FC -2 January 22, 2019 that was given over these last couple of weeks. At the last GREDC (Governmental Relations and Economic Development Committee) meeting, and many meetings that we had in the community, it's very clear that temporary roads are a priority. I'm just wondering, we're sitting on these huge pots of money, when are we going to start spending and providing these to constituents? I'm just wondering if anybody is there, able to speak on that? MS. OSHIRO: Sorry, I personally am not aware of the status of the roadwork regarding the funds and what's available. I do know that we used some of the State's money that was given to us as part of the County's share to offset the FEMA's (Federal Emergency Management Agency) reimbursement for us in 2018. But I'm not sure about the other roadwork that's happening currently. can find out. MS. KIERKIEWICZ: I just want to clarify. And so the money that we are receiving, this $170,000, it's being used as part of match for Federal money? MS. OSHIRO: No, the State. The $10 million that you spoke of earlier, and some of the other the $12 million that we also received, and we used that for the County's share to offset the FEMAs. But not this $170,000, in specific terms. MS. KIERKIEWICZ: So this $170,000 hasn't been earmarked yet for anything? MS. OSHIRO: Correct. MS. KIERKIEWICZ: Okay, thank you for clarifying. I yield the floor. CHR. DAVID: Thank you, Ms. Kierkiewicz. Anyone else? Council Members? No? Seeing none, all those in favor of approving Resolution 30-19 please say Ic aye. Vote on Res. 30-19: The motion to recommend adoption of Res. 30-19 was (Approved): carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 9. Noes: None. Absent: None. Excused: None. Page 9 FC -2 January 22, 2019 BILLS FOR The Chair directed the Committee to proceed to the next order of business, Bills ORDINANCES: for Ordinances. Bill 12: 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 Contribution from Private Source account ($170,355); and appropriates the same to the 2018 Lava Disaster Relief -Private account. Funds would be used to help offset costs incurred relating to the 2018 lava disaster in the lower Puna region. Reference: Comm. 52 Intr. by: Ms. David (B/R) Motion to Approve: Ms. Eoff moved to recommend passage of Bill 12 on first reading. Seconded by Ms. Lee Loy. CHR. DAVID: Discussion, Council Members? Ms. Lee Loy, go ahead. MS. LEE LOY: If Ms. Oshiro is still there, I'm just wondering if—you know, our two Puna Council Members have been very intimate with the needs of their district. I'm just wondering if it would really serve a purpose in this account, where there actually may be a different account in which our two Puna Council Members could use it and effectively apply it to the community a little bit quicker. I don't know, I just want to hear from my two Puna colleagues. MR. KANEALII-KLEINFELDER: I agree with Council Member Lee Loy. I do feel I'd like to be spending something quickly. Are we waiting for some Mayoral approval for that? I did notice through our budget, we haven't spent a lot of money in Puna this year, and I think it is time to start making some headway in that area. CHR. DAVID: Thank you. Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: I feel that the Puna Council Member is absolutely right. Puna has been struggling, and for a long time we haven't received our fair share. So I am very intrigued by the idea that Ms. Lee Loy has proposed. You know, considering can some of this money be allocated to our Contingency Fund so that we can work directly with the community to spend this money, is something that I—maybe we should take to the Mayor and see if he's open to that. Thank you. l yield. CHR. DAVID: Thank you very much. Anyone else? Ms. Lee Loy, go ahead. Page 10 FC -2 January 22, 2019 MS. LEE LOY: Yeah, just thinking out loud, I don't know if we want to hold it here. I know we did pass the resolution, but maybe between now and the next Council meeting, you know, our two Puna Council Members can go to the Mayor and look at a particular Contingency Fund account, where we can park it in there, through the same process, which would be open and transparent, to get it back out to the communities. I'm willing to move it forward if the rest of you are willing to move it forward. But in the meantime, I think, if you guys sit down with the administration and look at options to get this money right into the community rather quickly. Just putting it on the table. I yield. Thank you. CHR. DAVID: Thank you, Ms. Lee Loy. Mr. Richards, go ahead. MR. RICHARDS: Thank you, Chair. I like what Council Woman Lee Loy is saying, and this gives a chance to direct the funds relatively quickly. And again transparency, all there, right there. So I would be very supportive of holding this right now and letting the two Puna representativesI thought you said kupuna representatives the two Puna representatives, go have a talk -story and see if we can get something thatagain, outside the box thinking. But that's what we need to get it done, so I support that. I yield. CHR. DAVID: Thank you, Mr. Richards. Ms. Lee Loy, did you say that you would be okay with moving forward with this? In the interim, Mr. Richards was referring to holding it. MS. LEE LOY: The first option. CHR. DAVID: Okay. MS. LEE LOY: We'll move it along. I think because it creates a hard deadline for the administration to get with our Puna Council Members, and really facilitate a fast-track conversation. I'm also a little concerned because we did pass the resolution just before this, and I know they go together. So in effort to keep our legislation together, I would actually think it couldn't to move it forward, and then our colleagues can actually slow it down if they want at our first reading at Council. CHR. DAVID: Thank you for that. And yes, the resolution was a companion to this bill too. Any other discussion before we move forward? No? Alright, all those in favor of approving Bill 12, and forward it to Council with a positive recommendation please say "aye." Page 11 FC -2 Vote on Bill 12: (Approved): ADJOURN- MENT: January 22, 2019 The motion to recommend passage of Bill 12 on first reading was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David – 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: I believe that concludes—may I have a motion to adjourn, please? There being no further business, at 11:02 a.m., Mr. Richards moved to adjourn the meeting. Seconded by Ms. Eoff and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David – 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: We are adjourned. Mahalo, everybody. Approved: Ms. Maile Medeiros David, Chair Finance Committee MD/na c-->?—idq�—i� (Date) Page 12