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HomeMy WebLinkAboutMIN FC 2019/02/19 2018-2020Committee on Finance 4th Session West Hawaii Civic Center 74-5044 Ane Keohokaloele Highway, Building A Kailua-Kona, Hawaii February 19, 2019 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 1:06 p.m., in the Council Chambers, Kona, by Ms. Maile Medeiros David, Chair. ROLL CALL: 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 (came in later) Ms. Ashley L. Kierkiewicz, Member Ms. Susan L. K. Lee Loy, Member (came in later) Ms. Valerie 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: (There were none.) CHR. DAVID: We are going to recess until 1:30 p.m., for a quick lunch and be back. Mahalo. Recess: At 1:08 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 1:40 p.m. CHR. DAVID: Aloha, everyone, and welcome back to the Committee on Finance. I'm calling the Committee on Finance out of recess. Mr. Clerk, I believe we took care of Statements from the Public, so can we proceed at the top of the agenda? COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. FC -4 February 19, 2019 Comm. 9.6: MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED DECEMBER 31, 2018, FROM THE DEPARTMENT OF FINANCE From Finance Director Deanna Sako, dated January 23, 2019, transmitting the above report pursuant to Hawaii County Charter Section 6-6.3(h). Vote on Comm. 9.6: Ms. Poindexter moved to close file on Comm. 9.6. Seconded Filed by Ms. Eoff and carried by the following -voice vote: Ayes: Committee Members Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Villegas, and Chair David — 7. Noes: None. Absent: Committee Members Chung and Richards — 2. Excused: None. Comm. 10.5: REPORT OF CHANGE ORDERS AUTHORIZED: DECEMBER 16 — 31, 2018 From Finance Director Deanna Sako, dated January 18, 2019, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Vote on Comm. 10.5: Ms. Poindexter moved to close file on Comm. 10.5. Seconded Filed by Ms. Eoff and carried by the following voice vote: Ayes: Committee Members Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Villegas, and Chair David — 7. Noes: None. Absent: Committee Members Chung and Richards — 2. Excused: None. Comm. 11.3: REPORT OF FUND TRANSFERS AUTHORIZED: JANUARY 1 — 15, 2019 From Controller Kay Oshiro, dated January 17, 2019. Vote on Comm. 11.3: Ms. Poindexter moved to close file on Comm. 11.3. Seconded Filed by Ms. Villegas and carried by the following voice vote: Ayes: Committee Members Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Villegas, and Chair David — 7. Noes: None. Absent: Committee Members Chung and Richards — 2. Excused: None. Comm. 93: FAIR SHARE ANNUAL REPORT AS OF JUNE 30, 2018 From Planning Director Michael Yee, dated January 29, 2019, transmitting the above report pursuant to Hawaii County Code Section 2-162.1(a). Page 2 FC -4 Motion to Close File: February 19, 2019 Ms. Poindexter moved to close file on Comm. 93. Seconded by Mr. Kaneali`i-Kleinfelder. CHR. DAVID: Any discussion on the Fair Share? Ms. Lee Loy, go ahead. MS. LEE LOY: Yeah, thank you. I'm hoping someone from Planning is available. I just wanted to better understand Table 1 on page 10, the various appropriations for the different parks. CHR. DAVID: Thank you. Is someone from Planning in our Hilo Chambers? And note for the record, Mr. Richards has joined us. MS. LEE LOY: If they're not available, I'd be more than happy to lay this on the table and pick it up at the end of the agenda. CHR. DAVID: Thank you. So you'd like to the motion? Vote on Motion to Table: Ms. Lee Loy moved to table Comm. 93 to the end of the (Approved) agenda. Seconded by Mr. Richards and carried by the following voice vote: Ayes: Committee Members Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 8. Noes: None. Absent: Committee Member Chung — 1. Excused: None. CHR. DAVID: Alright, I'd like to wait for Mr. Chung before we go into the nonprofit. So could we, if it's okay with everybody could we move to Order of Resolutions? Change Order As directed by the Chair and with objection from the Council Members, the of Business: following items were taken out of order. Page 3 FC -4 Res. 20-19 February 19, 2019 AUTHORIZES THE EMPLOYMENT OF A PRIVATE ATTORNEY TO REPRESENT THE COUNTY OF HAWAII IN LITIGATION AGAINST OPIOID MANUFACTURERS WHO MAY BE LIABLE TO THE COUNTY OF HAWAII FOR THE OPIOID EPIDEMIC The Office of the Corporation Counsel requests the Council's approval to hire Napoli Shkolnik PLLC and its local counsel, the HI Accident Law Center, with any and all compensation to be provided from potential settlement or award amounts. Reference: Comm. 12 Intr. by: Ms. David (B/R) Postponed: January 8 and February 4, 2019 (Note: There is a motion by Ms. Kierkiewicz, seconded by Ms. Villegas, to recommend adoption of Res. 20-19.) CHR. DAVID: Please, there is already a motion on the table. I believe Deputy Corporation Counsel Horowitz is in our Hilo Chambers. (Note: At this time, Deputy Corporation Counsel Kaena Horowitz came forward to address the members of the Committee.) CHR. DAVID: Council Members, I'll open it up for discussion. Thank you, Mr. Horowitz. MR. HOROWITZ: Good afternoon. CHR. DAVID: Good afternoon. Would we want a summary from Mr. Horowitz first before we ask questions? Where we left off, I believe there were some questions. No? Okay. Mr. Horwitz, can you recap for us the litigation on the opioid matter? MR. HOROWITZ: Sure. So what we have before you is an opportunity, I suppose is the best way to phrase it, there would be a lawsuit filed by—if this were to go through, a lawsuit would be filed by Napoli Shkolnik and the Hawaii Accident Law Center on behalf of the County of Hawaii. It would be sensibly against the various levels of the distribution chain of opioids. So that would be everything from producers, marketers, distributors, all the way down to the physician level. It would seek to hold them liable for various negligent acts and misconduct that led us to the epidemic that we now face. I think the terms of Napoli Shkolnik and Hawaii Accident Law Center's engagement would be that the County would not have to incur any cost upfront so that should the case be resolved through settlement or victory, the County would receive a cut of whatever was settled or won; and should the case unfortunately end in a loss for the plaintiffs, the County actually wouldn't be out of any money Page 4 FC -4 February 19, 2019 on that either. The outside counsel that we would seek to hire would bear those costs. CHR. DAVID: Thank you, Mr. Horowitz. Council Members, any follow-up questions for Mr. Horowitz? Mr. Kaneali`i-Kleinfelder, go ahead. MR. KANEALI`I-KLEINFELDER: Hi. Thank you, sir. My only question is what would we do with the funds if we did win the lawsuit? Where would they go? Where would we apply them to? I don't if we touched on it the last time. But that was a thought I and another member had was, just what are we going to do with any financial gain from this lawsuit? MR. HOROWITZ: Sure, I think that question was danced around a little bit; but thank you for asking that directly. So let's say this ends in a windfall for the County, if I were to understand your question, if it ends in a windfall for the County, what would be done with whatever money, what is the result? Well, I suppose that would be up to you. It will be up to the administration what to do with it. I think there were some proposals. I think Ms. Poindexter mentioned last time, when it was discussed about a month and a half ago, that there are some educational outreach programs, there are health programs. There are all sorts of various ways that this money could be used directly to help the community. It would also, I suppose by extension, free up some other funds that might be used elsewhere. But whatever money resulted from a negotiated settlement or a victory would, I guess, that would be up to you and the administration how that money Is spent. MR. KANEALI`I-KLEINFELDER: So for my knowledge then, how would we clarify where that money goes for us, County Council? MR. HOROWITZ: I'm not sure I understand the question. Could you clarify it? MR. KANEALI`I-KLEINFELDER: Sorry, the question is more based for maybe Clerk, or Renee, or my own members. How would we clarify where that money is to go, if the lawsuit was to be found in our favor? (Note: At this time, Assistant Corporation Counsel Renee Schoen came forward to address the members of the Committee.) CHR. DAVID: Thank you, Ms. Schoen. MS. SCHOEN: Good afternoon, Madam Chair. Renee Schoen, Assistant Corporation Counsel. I imagine that the administration for this body could designate specific funds for which the money could be used, such as education, health, safety, anything related to the opioid crisis. The effects of use, that sort of Page 55 FC -4 February 19, 2019 thing. I can'tI mean, it's kind for difficult to speculate right now exactly. But I would imagine that the money could be used within those parameters. MS. KIERKIEWICZ: Chair David, if I may? CHR. DAVID: Yes, go ahead. MS. KIERKIEWICZ: No, just in response to Mr. Kaneali`i-Kleinfelder. I think if there's any money to be awarded to the County as a result of this lawsuit, like if we do move forward and approve this resolution to be part of this class action lawsuit. Similar to what we did with Bill 12, where there was money coming into the County from private donors, we as a Council would accept those funds. I think it's within our interest and our purview to actually direct where those monies go. So we could essentially create another exhibit for how those monies are spent, and I'd be in favor of doing that. I think we know our communities well enough to be able to direct the funds. CHR. DAVID: Thank you, Ms. Kierkiewicz. MR. KANEALI`I-KLEINFELDER: Would that be something we need to do now concurrently with this bill, or could that be done later? CHR. DAVID: I think that would arise later, when the time came. MR. KANEALI`I-KLEINFELDER: Okay. That's my other question, thank you. Thank you, Renee. CHR. DAVID: Mahalo. Anyone else? Oh, I'm sorry. Ms. Villegas. MS. VILLEGAS: Thank you. As circumstances unfolded between our last conversations about this; while driving to work one day listening to NPR (National Public Radio), we were talking about the opioid epidemic. The gentlemen being interviewed was Mr. Barry Meyer, who wrote a book "Painkiller the Empire of Deceit and the Origin of America's Opioid Epidemic." Really interesting information in here, talking about the intentionality and why it's not only such a tremendous epidemic, but why manufacturers are in fact—did market it as something very different. I also had some other information come my way recently that is indicating that not only did major pharma manufacture these drugs knowing that the potential or addiction and death was much higher than some people think, but also that they're manufacturing the drugs that become the solution for that. So that's when you create the problem and then you create the drugs to cure the problem, you get really, really, really, really rich. Page 6 FC -4 February 19, 2019 You know, in a lot of our conversations, and I know from all of our districts having immense issues with homeless and kind of a the population of homeless, it's not just houseless, but that tends to be chronic homeless. Drug abuse is extremely connected with a lot of these issues; what that costs us and will continue to cost us in looking for resources in how to, I just see this as an opportunity without a whole lot of risk to utilize as a resource because families are being devasted by this issue. We're seeing in our State news, with some of our other leadership in other positions, which I think is really sad. But I'm also grateful as Mr. Richards has pointed out that a big part of the problem lies with the doctors prescribing them. It's just a double -edge sword all the way around. So I'm grateful that they are being followed-up on and busted, for lack of a better term, those prescribing them. But holding Major Pharma accountable, when that is part of marketing and the strategy for a company and it causes such immense pain and suffering to so many people. I think there needs to be some accountability for corporations in this capacity. I yield. CHR. DAVID: Thank you, Ms. Villegas. Mr. Richards. MR. RICHARDS: Thank you, Chair. I'll weigh in. Again not long, just briefly summarize. I don't disagree we have an issue and our hand in it. It's not just an issue, it's a crisis. We have a big problem going on. Where I take my issue is withI don't think this is the way to effect a solution. It's in the end-user. I'm not convinced that a lawsuit for funding that will create a program is a way to go because I don't think we're the experts to do that. I don't disagree we have an issue. I think we have to figure out how to do that. But creating more litigation, I don't think is the solution with this situation. I'm not convinced. I won't be supporting. Thank you. CHR. DAVID: Thank you, Mr. Richards. Anyone else? Let the record show that Chair Chung has rejoined us. And if there's no more comments, I'm ready to take the vote. All those in favor of moving Resolution 20-19 to Council with a positive recommendation, roll call please, Mr. Clerk. Page 7 FC -4 February 19, 2019 Vote on Res 20-19: The motion to recommend adoption of Res. 20-19 was (Approved) carried by the following roll call vote: Ayes: Committee Members Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Villegas, and Chair David — 6. Noes: Committee Members Chung, Lee Loy, and Richards — 3. Absent: None. Excused: None. (Note: Ms. Poindexter voted "kanalua" then "aye.") CHR. DAVID: Ms. Lee Loy, I believe we have Bethany Morrison, from Planning, in our Hilo Chambers. We could go back to the Fair Share Report, Communication 93, if you'd take that off. Vote on Motion to Remove from Table: (Approved) Ms. Lee Loy moved to remove Comm. 93 from the table. Seconded by Mr. Richards 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: Go ahead, Ms. Lee Loy. (Note: At this time, Long Range Planning Program Manager April Surprenant and Planner V Bethany Morrison came forward to address the members of the Committee.) MS. LEE LOY: Thank you. Thank you, Ms. Surprenant, and looks like Ms. Morrison in our Hilo office. Maybe if you could just provide a backdrop on this. We have three freshmen Council Members. And then I had specific question as it relates to Table 1, page 10, and the appropriations for the various parks. So maybe perhaps, April, you can start with the backdrop or background on the Fair Share and how these monies kind of move into these various pots. MS. SURPRENANT: Absolutely. Hi, Council Members. April Surprenant, from the Planning Department. The Fair Share has been around for a long time. It's started by the Council Members, actually adding clauses and conditions into Page 8 FC -4 February 19, 2019 rezone ordinances. The only time Fair Share comes into play is through a rezone ordinance, when the rezone is related to residential lots, increasing residential lots. So typically—when the payment happens, typically happens at final subdivision or at plan approval, they are divided into different categories, as you can see from the report as well as defined by the district in which the project that is going in for rezone is located. Those monies do have to stay within that district for the most part, and the monies can only be used in order to help mitigate potential issues that may occur in our public services regarding that particular development or rezone. So monies are spelled out on the first page of the report. It can be used for capital improvements, typically new construction. We also venture that into expanding capacity. So if a particular project that a County agency wants to do is expanding capacity to allow for more of whatever is needed. Adding another traffic lane; increasing, for Fire for example, increasing their capacity to have more trucks. It pay cannot pay for a truck because that's an operating expense, but it could pay for facilities, new or additional facilities to house an additional truck, to better take care of that particular region. It also has to have a regional benefit. Again, like I said before, it has to be in a judicial district from which the monies came. MS. LEE LOY: Thank you, Ms. Surprenant. So, I had a question on page 10. A number of projects for Reeds Bay Beach Park, Mo`oheau Bandstand, they were all appropriated and then they lapsed. I'm trying to understand—you know, we had these monies, they get appropriated for projects to increase capacity or improve the various facilities and then the monies lapse. Can you help me understand that? MS. SURPRENANT: Sure. So typically, most of the time projects are appropriated through the Capital Improvements program; so when the CIP (Capital Improvement Project) budget is adopted, oftentimes the departments will allocate a certain amount in the Fair Share area of the CIP and FIS (Financial Impact Statement), each one of the project worksheets. So that's typically how they are appropriated, through the CIP. If it's not done through the regular form of the CIP, in can be done through an amendment to the CIP. As you know, the CIP, anything in the CIP, if the funds are not allotted or encumbered, then items lapsed. That's what happened with these, is that they didn't move forward in that timely manner, in that three years. And so they revert back, which we call them "lapsed." MS. LEE LOY: Yeah, thank you. I think this is where my frustration lies. We have opportunities with pots of money. We assign them to increase capacity, and for whatever reason they're not getting done. You know what, maybe I'm willing to put my head together with the Planning Department on seeing how we can best utilize these monies, because there are a lot of need in our community. You Page 9 FC -4 February 19, 2019 know, we just passed three different zoning opportunities earlier this morning. It's that process that generates the funds that creates these pots of monies to help improve our parks or improve Fire or Police service. I just think we have to do a better job at, you know, having these projects come to fruition. So, thank you. MS. SURPRENANT: Yeah, you're welcome. I think sometimes, one of the questions, sometimes we need to go back to the department. It could be based on capacity of being able to bring a project forward, or them having other sort of urgent projects that come throughout the year. Some of them are mandated through the State or through the Feds, and so that can complicate when certain projects are built out. Also, it may require additional funding that something may have happened with the additional funding, be it a grant or other source. So we have to take all of those things into consideration. But we would need not only the Planning Department to be in that conversation, it would need to include the other departments who are actually implementing. MS. LEE LOY: Yeah, April, thank you so much. There's so much—and back to there's a lot of need in our community. We've got to figure out a way to accelerate these monies, to really start improving so many of our facilities that need some tender loving care and/or like you said, increase capacity. Turning lanes, bike lanes, you know, this is where these Fair Share contributions would come into play along with our fuel tax. You know, just putting it out there and hopefully the rest of my colleagues can see if we as a body can start focusing on certain projects and recognize that there are other pots of money besides the typical tax revenues. That we could create better synergies and really deliver facilities to our communities. I yield. Thank you. MS. SURPRENANT: You're welcome. CHR. DAVID: Thank you, Ms. Lee Loy. Go ahead, Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you. I don't have a question for Mr. Surprenant. Thank you for the explanation. I do want to piggyback off of what my colleague Ms. Lee Loy has mentioned and just read for the Council and into the record, how much contributions we have for these various departments. Roughly $1.3 million for Fire; approximately $8.5 million for Parks; $420,000 for Police; a couple pages here for roads, $20.6 million for roads. A total almost of $31 million in Fair Share contributions. So I'm just thinking out loud here, but we're going to have the budget before us in a couple of weeks, so I feel this is an opportunity to set priorities in the budget to spend down this money and really deliver for our community. I yield the floor. Thank you. CHR. DAVID: Thank you very much. Anyone else? Mr. Kaneali`i-Kleinfelder and then— Page 10 FC -4 February 19, 2019 MR. RICHARDS: Matt can go first. MR. KANEALI`I-KLEINFELDER: What happens to the funds if they don't get encumbered or used? Where do they go from there? MS. SURPRENANT: They remain in the account until they're used. MR. KANEALI`I-KLEINFELDER: Okay. CHR. DAVID: Thank you. Mr. Richards, go ahead. MR. RICHARDS: Thanks, Chair. I think the colleagues, we're asking the same questions. Mr. Kaneali`i-Kleinfelder just asked one of my questions. And so I'm understanding the funding is still there, correct, it's sitting in the account? MS. SURPRENANT: That is correct. And I would point you to page 10 of the document for the totals that are available. At the bottom of page 10, where it say, "Total Capital Funds Available," those are the actual amounts that are available. MR. RICHARDS: Those are the total totals on bottom of page 10. So Table 2 is? MS. SURPRENANT: Table 2 is the In Lieu Contributions, so those are the contributions that various developers have made in lieu of paying cash. So Table 1 is Cash Contributions and Appropriations, whereas Table 2 is In Lieu Contributions; so these are projects that have done in lieu of paying the cash. So instead of paying Parks' Fair Share, they put in a park to their development of a certain amount, and the values are noted on that Table 2. MR. RICHARDS: We're losing you, can you get a little closer to the microphone? MS. SURPRENANT; Oh sure. So Table 2 is the In Lieu Contributions that note if a project put in a particular element that satisfied their Fair Share Contribution. A good example is a park. So instead of paying for a certain amount of cash that was due on their Fair Share, they built and allocated a park within their or next to their project, which satisfied that park requirement. That's what the In Lieu Contributions are MR. RICHARDS: Okay, so—Then bottom of page 10, the totals there; just an example, Fire $600,000, $627? MS. SURPRENANT: Yes. MR. RICHARDS: That's the total we're looking at? Page 11 FC -4 February 19, 2019 MS. SURPRENANT: Yes. MR. RICHARDS: I think what's concerning all the Council Members, is looking at these funds and these funds coming forward. As Ms. Lee Loy pointed out, it's bothersome that this money goes and then nothing happens with it. It just sits there, and it just keeps sitting there. We have lots of need. From our perspective, and maybe this is not a question for you, maybe it's a question for Finance. How do we direct to get these funds used? Within a district, I appreciate that. But what's the next step to get these things moving? MS. SURPRENANT: Well, one is to look at perhaps the Capital Improvements program and see where funds could be allocated from Fair Share to make up for say some amounts that are being contributed through bonds. MR. RICHARDS: Okay. MS. SURPRENANT: That's the easiest place to look to. To use the funds, is through the Capital Improvements program. MR. RICHARDS: Okay. MS. SURPRENANT: And we do urge the departments. I think they do look for opportunities to use Fair Share. But perhaps we could look a little deeper at that. MR. RICHARDS: Okay, I'll yield. Thank you. CHR. DAVID: Thank you, Mr. Richards. Anyone else? Mr. Kaneali`i-Kleinfelder, go ahead. MR. KANEALI`I-KLEINFELDER: Do we gain interest on that number at all? MS. SURPRENANT: That's a question for Finance. I don't know. MR. KANEALI`I-KLEINFELDER: Am I right in saying that there's $4.1 million available towards Capital Improvement Projects? MS. SURPRENANT: That is correct. MR. KANEALI`I-KLEINFELDER: Okay, thank you. CHR. DAVID: Thank you. Anyone else? Ms. Eoff, go ahead. MS. EOFF: So I believe probably part of the challenge is that when Fair Share monies are given over by a developer, they have to be spent within the district. Page 12 FC -4 February 19, 2019 So it has to coordinate timewise with Capital Improvement project that the administration takes on. And then they can go to the Fair Share and use monies that are available there. I know it's probably a kind of a logistical puzzle in a way. Thank you. CHR. DAVID: Thank you, Ms. Eof£ Ms. Villegas, go ahead. MS. VILLEGAS: Also, just another quick question. For the County totals, we have the total contributions at $11.4 million; with the total appropriations, at $15.4 million. I guess I'm wondering how would a $15.4 be allocated if we only had $11.4.? Is it safe assume that there was already money in the account? Or were the appropriations like just figure out the amount of money that was there, is that the norm? And I see that total lapsed appropriations, so those projects didn't happen, correct? MS. SURPRENANT: Correct. MS. VILLEGAS: And then the net appropriations, that's how much actually got paid and done and billed with? I'm just trying to make sure I'm looking at this map correctly. MS. SURPRENANT: Correct. MS. VILLEGAS: And then it makes more sense why somebody would have made a wish list of $15 million if they only $11 million. MS. SURPRENANT: Understood. So the $15 million is total appropriation that have happened over time. MS. VILLEGAS: Okay. MS. SURPRENANT: And then the total lapsed over time, then the net appropriations that we currently have today. So that's how we get to the $4.1 million. The $11 million is also overtime. MS. VILLEGAS: Okay. MS. SURPRENANT: Since the beginning of this particular program, we've taken in $11.4 million in cash. MS. VILLEGAS: And we've tried to appropriate $15.4? MS. SURPRENANT: Correct. Page 13 FC -4 February 19, 2019 MS. VILLEGAS: Okay. My other question goes to, and just so I can get a better understanding of how this is outlined, when it says North Kona, are these by districts then? MS. SURPRENANT: Judicial districts, correct. MS. VILLEGAS: Okay. So would District 7 be considered North Kona? MS. SURPRENANT: Is that right? I think so. MS. VILLEGAS: Because there's a North and South Kona. MS. SURPRENANT: Yes, North Kona is 7. MS. VILLEGAS: Because then there's a North and South Kona, and then there's a South Kona. MS. SURPRENANT: That's correct. The reason for that is the project that contributed to the North and South Kona, the whole project bridged both districts, and so we had to create a separate a pot for that, which means that those monies can be used for either North or South Kona. MS. VILLEGAS: Thank you for helping me with that. I was just starting to get confused with my North and South Konas. MS. SURPRENANT: Of course. MS. VILLEGAS: I appreciate it. I yield. CHR. DAVID: Thank you. Ms. Lee Loy, go ahead. MS. LEE LOY: Yeah, thank you. I'm so glad that everybody up here is thinking. It will help me because within the Fair Share Contribution there has to be some rational nexus, right? But you also mention that it had to increase capacity. So like building a new park. Or we couldn't buy a fire truck but monies to construct a new fire station could be utilized with that money. Could you point me and the rest of my colleagues that definition? And how maybe we can maybe even wordsmith something or try and wiggle our ways into these pots of money and utilize them. MS. SURPRENANT: Okay. So on page 1 of the document, where it speaks to rational nexus, the purpose of the rational nexus is to mitigate impacts of a development. Part of where this came from, back in the 90s, I think. I'd have to get the exact date. There was a report that Council commissioned to look at an analysis for impact fees. At the time, the Council did not adopt impact fees, but Page 14 FC -4 February 19, 2019 they did take that report in consideration for how to create conditions for Fair Share. So this is from the beginning what was used on how to create those conditions, which came from that report, which we're happy to locate that and send you a copy of that. But that's where this very brief outline comes from and how we work out receiving and how to use Fair Share. MS. LEE LOY: So for example, I have an ask to create a skate park Hilo. Assuming the monies are available, this would pass the test of creating, or increasing capacity and have a rational nexus. So introducing a CIP project for a new skate park could utilize some funds from the Fair Share Contribution. Is that a fair guess? MS. SURPRENANT: I would ask the question potentially is my answer, I guess. I would ask, is the skate park going on existing park lands or on new park lands? That would be part of the conversation. MS. LEE LOY: It's new. It would be new. MS. SURPRENANT: Then I would say that's increasing our parks' capacity overall. MS. LEE LOY: Thank you. I yield. CHR. DAVID: Thank you, Ms. Lee Loy. Ms. Eoff did you? MS. EOFF: I have a comment. CHR. DAVID: Yes, go ahead. MS. EOFF: So the lapsed appropriations oftentimes are just reappropriated at a later date, is that correct? MS. SURPRENANT: That does happen. MS. EOFF: They don't really go anywhere. MS. SURPRENANT: That does happen. MS. EOFF: Okay, thank you. CHR. DAVID: Thank you. Anyone else? No? Seeing none, alright then all those in favor of filing Communication 93, please say "aye." Page 15 FC -4 Vote on Comm. 93 Filed Comm. 95 Motion to Close File: February 19, 2019 The motion to close file on Comm. 93 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: Mr. Clerk, can we proceed to Communication 95? FISCAL YEAR 2019-20 NONPROFIT GRANT REVIEW PROCESS AND FORMATION OF AN AD HOC COMMITTEE From Finance Committee Chair Maile Medeiros David, dated February 1, 2019, describing the nonprofit grant review process and requesting formation of an ad hoc committee. The ad hoc committee would conduct application reviews with the applicants for the County's annual nonprofit grant awards and then report its findings to the Finance Committee. Mr. Richards moved to close file on Comm. 95. Seconded by Ms. Kierkiewicz. CHR. DAVID: If I can have my Council Members indulgence, I'd like to do a brief summary. MR. RICHARDS: Chair, how would you like to do this? CHR. DAVID: Yeah, I'll do the summary first and then—okay. Alright, Communication 95 basically describes the nonprofit process and lists all the applicants. This year, we have received 160, compared to 180 last year. Out of the 160 we received this year 154 were qualified. Six were either missing some information or were rejected. So we have 154 to work with. I'd like to first of all thank Mayor Kim for actually allowing us $500,000 additional monies for the nonprofit grants. By Code, we have to provide at least $1 million for this program. So thank you, Mayor Kim. Today's meeting, we will be this meeting is serving of the notice of the assignment of the ad hoc committee and we'll describe the process of forming such an ad hoc committee. I'd like to also thank Deanna Sako and the Department of Finance and their staff, particularly Ted Schrey and Lisa Tada, for their diligence and hard work. This is Page 16 FC -4 February 19, 2019 a really intense and time consuming project. I also want to thank Donna Eckersley from our LRB department. And of course Dawn Manago who is the person who actually puts all our information, spreadsheets, contacts all the applicants, makes sure the appointments and interview dates and times are set up. So thank you very much for staff and the department. Scope of Ad Hoc So Council Rule 7 says that our purpose of this meeting is to form the ad hoc. Committee: And the specific scope of the ad hoc is to review the applications, interview each organization, perform site visits as appropriate, determine the award recommendation amounts, and then bring these recommendations to the Finance Committee on April 9. So that's a pretty tight timeframe to get all this stuff done. In the past, the Chair of the Finance Committee would recommend the ad hoc. Would come forward and basically have the names of three members that the Chair recommends to sit on this committee. This year I want to do it a little bit different. Before I make my recommendation, I'd like to hear from each one of the Council Members what their feelings are, what their thoughts are about serving on this ad hoc committee. So with that in mind, Mr. Richards, would you like to go first? MR. RICHARDS: Thank you, Chair. Yeah, I'll take a swing at it first. First of all, I think this is one of the more fun and brutal committees that we have, all in the same breath. Going through all the different applications is time consuming, but it also gives you a deep understanding of the needs of the community as a whole. When I say community, I'm talking all aspects, all districts, everywhere. I've served on it for the last two years and I eagerly anticipate this committee. That being said, in reviewing it, one of the things it helped me do was engage with the community and get a better understanding of where were heading and the needs of the community as a whole. So though I would consider it a great honor to serve on this committee, I've spoken to Mr. Kaneali`i-Kleinfelder about this and on a selfish note, I'd love to do it again, but I think on a better note for the Council as a whole, I would like to and I don't know what the correct procedure here is, but strongly encourage if not nominate or twist his arm and say, "You're on it," one of the three. Or all three combined. That being said, Matt and I did have a brief conversation about this and he is willing to do it. I think for the health of the Council as a whole, having his serving in my stead would make better sense for the Council as a whole. So I think—yeah, that's a good term. Thank you, Council Woman Lee Loy. Matt, you're getting "voluntold" for this committee. I'm going to yield at this point. Page 17 FC -4 February 19, 2019 CHR. DAVID: Thank you, Mr. Richards, for that. Ms. Eoff, go ahead. MS. EOFF: Thank you, Madam Chair. I feel just about exactly as Mr. Richards does, and I've served on this committee I think at least six times. And prior to that I worked for Councilman Pilago who had this committee, so I staffed the committee for many years. Although I love being part of the interviews and the decision making on this, it's exactly how he said, you get to learn more about our community and find out what great work is going on behind the scenes and actually being able to help those things is a real honor. But I feel like he does. I think at this point in time it would be best for me to let go of that and I did talk to Ms. Villegas about that since she's from Kona, and she's willing to serve as well. So I don't think I have to twist her arm, but I think I'd like to suggest that she participate on the ad hoc now, instead of me. Thank you. CHR. DAVID: Thank you very much. Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: What a rewarding process, to be able to learn more about the good work that's happening on our island by these nonprofits and to be able to award $1.5 million. What a blessing. I'm not going to make the pitch to be on the committee. I would love to serve, but we have two freshmen and I know that we're in good hands with Matt representing Puna. I know that when I became a Council Member, I had discussions with Ms. Lee Loy about how rewarding this process is. So I would actually like to nominate her, to serve on the ad hoc. CHR. DAVID: Thank you very much. Go ahead, did you want to say something? MR. CHUNG: I was just going to make a recommendation actually. But this thing it's taking on a life of itself and it's really forming like how I thought it should be. You're going to be on it, right? CHR. DAVID: I hope so. MR. CHUNG: I'll tell you what my suggestion would have been. It would have been you, Ms. Lee Loy, Mr. Kaneali`i-Kleinfelder, and Ms. Villegas. Two newcomers. CHR. DAVID: That's exactly what happened. MR. CHUNG: Yeah, and that's how it's shaping up. So you called me last, but—because you know, and I think Mr. Richards or Ms. Kierkiewicz and others would have been really good on this committee as well, but I think we have other plans for the two of them, you know, in terms of time commitments. Things will develop, I think, in the next few weeks. But that would be my recommendation. think that's a real good line up. Page 18 FC -4 February 19, 2019 CHR. DAVID: Thank you, Chair Chung. And before I go to you Ms. Kierkiewicz, can I go to Ms. Lee Loy? MS. LEE LOY: Yeah, I look forward to serving all over again. And as Chair Chung has mentioned, I think it does dovetail right back to when we were establishing this body by providing freshmen colleagues with senior—veteran— okay, that's a good word—seasoned Council Members. But also I'm actually liking the way that's shaping up just because Puna's being represented, Kona, Hilo. I think it's a nice blend, Ka`u. I stand ready. Thank you. CHR. DAVID: Thank you very much. Ms. Kierkiewicz. MS. KIERKIEWICZ: I just had some historical questions, Chair David. CHR. DAVID: Sure. MS. KIERKIEWICZ: Typically this body would have met under Department of Human Services? CHR. DAVID: Yes. MS. KIERKIEWICZ: And so because we don't have that committee, it falls under of Finance. So was an ad hoc committee always established to distribute grants -in -aide, or did the entire body of Human Services meet to go through all of the applications together and make decisions. CHR. DAVID: The Human Services Committee, when we had one, went through the same process. The Chair of Human Services would do what I'm doing right now. Accept, the Chair of Human Services made a recommendation. So I came to this meeting with names already proposed and offered it to the Council and they either accepted or we discussed those recommendations and then voted on it. So it's the same process basically of forming the ad hoc committee. MS. KIERKIEWICZ: So the idea of forming the ad hoc committee is because there's so much information to get through in a very short window of time. It behooves this Council to have folks that are very dedicated to reviewing applications and making recommendations to the body. It has nothing to do with transparency, right? It's about efficiency and making good recommendations. MS. DAVID: Then if you could visualize this body meeting and interviewing 154 applicants on a timeframe. We'd have to—it's just overbearing. That's why the suggestion of forming an ad hoc was a more efficient way of doing it. That Page 19 FC -4 February 19, 2019 would allow four Council Members to discuss openly and meet with these applicants. MS. KIERKIEWICZ: So all Council Members still get copies of the applications. MS. DAVID: Oh yes. MS. KIERKIEWICZ: So if we don't agree with the recommendation of the ad hoc, at a Finance Committee we can discuss and make adjustments to how the money is actually doled out and awarded. CHR. DAVID: I'll come back, yes. MS. KIERKIEWICZ: Okay, just want to make sure I have it all clear in my mind. Thank you. MS. DAVID: You're welcome. Anyone else? Ms. Villegas. MS. VILLEGAS: First off, I'd just like to say thank you. I consider it a huge honor and a privilege and a deep responsibility to serve in this capacity. I also am very passionate about this. This is one of my responsibilities with the Kona Brewing Company. That was working in the private sector, and now being able to work in the public sector but connecting with, you know, hundreds if not thousands of different organizations, not only on the island but within the State. So I'm hopeful that I can bring some of that experience to this ad hoc committee. I'm also extremely excited for the opportunity to learn more about the nonprofit organizations and the projects being done around the islands. Educating myself, connecting with those, and really supporting the overall betterment of our island home. Yeah, I'm just really excited. I'm sure it'll be a lot of work. It sounds like some very long days, but I just want to thank Karen for allowing me the opportunity, and I'm looking forward to working with all of you. So mahalo. CHR. DAVID: Thank you very much. Anyone else, comments? No? Alright. Before I make my recommendation, I just would like to say it's like Mr. Richards and Mr. Chung read my mind. Because initially my recommendation would have been two men and two women. But I was having a problem because I really had a hard time choosing between Ms. Lee Loy and Mr. Richards and to have that balance for two seasoned and two freshmen. So thank you for making my job a lot easier today. So I think that gives a balance that—and my actual personal desire is I really believe that I need to pass the torch eventually, down the road, so I want our freshmen and the Council Members that will be here long after we're gone to continue this and have a good, not training, but experience in this really, really important program. Page 20 FC -4 February 19, 2019 Membership of With that said given the discussions I would like to recommend that the ad hoc Ad Hoc Committee: committee be made up of Council Members Lee Loy, Villegas, Kaneali`i-Kleinfelder, and myself as Chair. Any further discussion on that? Everybody happy? Yes. Okay, ad hoc committee members, I just want to let you know that we will hold our first ad hoc committee meeting after we adjourn Finance this afternoon. So we'll just meet and—yeah. And we have all our applications, I think. I'm sorry, Ms. Eoff just reminded me we have one more committee after this. Okay, after we close committee meetings today we'll have our first ad hoc meeting. So I would like now to entertain a motion to postpone Communication 95 to our April 9 Finance Committee meeting. Motion to Postpone: Mr. Richards moved to postpone Comm. 95 to April 9, 2019. Seconded by Ms. Lee Loy. CHR. DAVID: At that meeting, the ad hoc committee will present its recommendations to the Finance Committee as a whole. Deliberation and vote on those recommendations will be postponed to the April 23 meeting of the Finance Committee. The reason for that is our Council Rules require that deliberation and decision making must occur at a meeting subsequent to the meeting that we make those recommendations. Vote on Postponement: The motion to postpone Comm. 95 to April 9, 2019 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. CHR. DAVID: Communication 95 is postponed to our April 9, 2019 meeting of the Finance Committee. Thank you very much, everybody. Mr. Clerk, can we move on? MR. HENRICKS: If you wouldn't mind, would you please call a five-minute recess so we can restart our system? We've couple of glitches we're experiencing. CHR. DAVID: Okay, sure. Finance Committee is in recess for five minutes. Page 21 FC -4 February 19, 2019 MR. HENRICKS : Thank you. Recess: At 2:36 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 2:47 p.m. CHR. DAVID: Aloha everyone. Welcome back to the Committee on Finance. I'm taking it out of recess at this time. Mr. Clerk, can you proceed with Resolution 55-19? ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 55-19: CHANGES THE FULL-TIME EQUIVALENT STATUS OF A LIQUOR CONTROL INVESTIGATOR II POSITION FROM A FULL-TIME POSITION TO BECOME A HALF-TIME POSITION Requests to change the full-time Liquor Control Investigator II position to a half-time position, to increase coverage for the West Hawaii area on weekends and evenings. Reference: Comm. 108 Intr. by: Ms. David (B/R) Motion to Approve: Ms. Villegas moved to recommend passage of Res. 55-19. Seconded by Mr. Richards. (Note: At this time, Administrative Officer Brandon Gonzalez came forward to address the members of the Committee.) CHR. DAVID: Mr. Gonzalez, thank you. Could you just give us a brief explanation of the full-time to half-time position? MR. GONZALEZ: Good afternoon. Administrative Officer Brandon Gonzalez for the Department of Liquor Control. Thank you for your time. As stated in the communication, we have a vacant funded Liquor Investigator position for West Hawaii that we would like to convert into two part-time Liquor Investigator positions to give us more flexibility and coverage for the evenings and weekends, which is typically our busiest time for licensee business. MS. DAVID: Thank you, Mr. Gonzalez. Council Members, any questions? Seeing none, all those in favor of approving Resolution 55-19, please say "aye." Page 22 FC -4 Vote on Res 55-19: (Approved) The motion to recommend adoption of Res. 55-19 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: Thank you. Mr. Clerk, 56-19. February 19, 2019 Res. 56-19: CREATES ONE LIQUOR CONTROL INVESTIGATOR II POSITION FOR THE DEPARTMENT OF LIQUOR CONTROL Requests to establish a half-time Liquor Control Investigator II position, to increase coverage for the West Hawaii area on weekends and evenings. Reference: Comm. 109 Intr. by: Ms. David (B/R) Vote on Res 56-19: Ms. Eoff moved to recommend adoption of Res. 56-19. (Approved) Seconded by Mr. Richards 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: Mr. Clerk, Resolution 57-19. Page 23 FC -4 February 19, 2019 Res. 57-19: AUTHORIZES THE MAYOR TO ENTER INTO AN INTERGOVERNMENTAL AGREEMENT WITH THE STATE OF HAWAII, HAWAII PUBLIC HOUSING AUTHORITY, AND AUTHORIZES A MULTI-YEAR CONTRACT FOR THE USE OF THE POMAIKAI SENIOR CENTER LOCATED AT 929 ULULANI STREET, HILO, HAWAII 96720, TAX MAP KEY: 2-4-25:92 Authorizes the Mayor to enter into a three-year facility lease agreement at an estimated monthly cost of $125, with the option of two one-year extensions. The facility would be used for congregate dining, information and assistance, classes and workshops, and meeting and assessments. Reference: Comm. 110 Intr. by: Ms. David (B/R) Vote on Res 57-19: Ms. Lee Loy moved to recommend adoption of (Approved) Res. 57-19. Seconded by Ms. Villegas 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: Mr. Clerk, Resolution 58-19. Res. 58-19: AUTHORIZES THE MAYOR TO ENTER INTO AN INTERGOVERNMENTAL AGREEMENT WITH THE STATE OF HAWAII, HAWAII PUBLIC HOUSING AUTHORITY, AND AUTHORIZES A MULTI-YEAR CONTRACT FOR THE USE OF THE KEA`AU NUTRITION CENTER — HALE ALOHA O PUNA LOCATED AT 16-189 PILI MUA STREET, KEA`AU, HAWAII 96749, TAX MAP KEY: 1-6-143:35 Authorizes the Mayor to enter into a three-year facility lease agreement at an estimated monthly cost of $125, with the option of two one-year extensions. The facility would be used for congregate dining, information and assistance, classes and workshops, and meeting and assessments. Reference: Comm. III Intr. by: Ms. David (B/R) Page 24 FC -4 February 19, 2019 Vote on Res 58-19: Ms. Villegas moved to recommend adoption of (Approved) Res. 58-19. 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. CHR. DAVID: Mr. Clerk, Resolution 59-19. Res. 59-19: AUTHORIZING THE MAYOR TO ENTER INTO AN INTERGOVERNMENTAL AGREEMENT WITH THE STATE OF HAWAII, HAWAII PUBLIC HOUSING AUTHORITY, AND AUTHORIZES A MULTI-YEAR CONTRACT FOR THE USE OF THE PAHALA SENIOR CENTER LOCATED AT 96-1169 HOLEI STREET, PAHALA, KAT, HAWAII 96777, TAX MAP KEY: 9-6-17:37 Authorizes the Mayor to enter into a three-year facility lease agreement at an estimated monthly cost of $125, with the option of two one-year extensions. The facility would be used for congregate dining, information and assistance, classes and workshops, and meeting and assessments. Reference: Comm. 112 Intr. by: Ms. David (B/R) Vote on Res 59-19: Mr. Kaneali`i-Kleinfelder moved to recommend adoption (Approved) of Res. 57-19. Seconded by Mr. Richards 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: Mr. Clerk, Bill 25. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Page 25 FC -4 February 19, 2019 Bill 25: 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 — Senior Community Service Employment Program account ($4,778); and appropriates the same to the Senior Community Service Employment Program — Salary and Wages account, bringing the total appropriation to $342,049. Funds would be used for the Department of Parks and Recreation's Senior Training Employment program. Reference: Comm. 107 Intr. by: Ms. David (B/R) Vote on Bill 25: Mr. Kaneali`i-Kleinfelder moved to recommend passage (Approved) of Bill 25. Seconded by Ms. Villegas 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. ADJOURN- There being no further business, at 2:54 p.m., Ms. Kierkiewicz moved to adjourn MENT: 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. Thank you, everybody. Approved: Ms. Maile Medeiros Davi , -hair Finance Committee MD/na (Date) Page 26