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HomeMy WebLinkAboutMIN FC 2019/03/27 2018-2020CALL TO ORDER: R(1T T CAT r Present Absent: STATEMENTS FROM THE PUBLIC ON AGENDA ITEMS: Committee on Finance 6th Session West Hawaii Civic Center 74-5044 Ane Keohokaloele Highway, Building A Kailua-Kona, Hawaii March 27, 2019 The regular meeting of the Committee on Finance was called to order at 2:06 p.m., in the Council Chambers, Kona, by Ms. Maile Medeiros David, Chair. Ms. Maile Medeiros David, Chair Mr. Herbert M. "Tim" Richards, Vice Chair (came in later) 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. Rebecca Villegas, Member Ms. Valerie T. Poindexter, Member The Chair directed the Committee to proceed to the next order of business, Statements from the Public on Agenda Items. (There were none.) MS. DAVID: At this time, I will close Statements from the Public and move on to Communications. Mr. Clerk, Communication 9.7. COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 9.7: MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED JANUARY 31, 2019, FROM THE DEPARTMENT OF FINANCE From Finance Director Deanna Sako, dated March 6, 2019, transmitting the above report pursuant to Hawaii County Charter Section 6-6.3(h). FC -6 March 27, 2019 Vote on Comm. 9.7: Mr. Richards moved to close file on Comm. 9.7. Seconded by Filed Ms. Villegas and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair David — 8. Noes: None. Absent: Committee Member Poindexter —1. Excused: None. CHR. DAVID: Mr. Clerk, the next communication, please. Comm. 10.8: REPORT OF CHANGE ORDERS AUTHORIZED: FEBRUARY 1 — 15, 2019 From Finance Director Deanna Sako, dated March 6, 2019, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Vote on Comm. 10.8: Mr. Richards moved to close file on Comm. 10.8. Seconded by Filed Ms. Eoff and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair David — 8. Noes: None. Absent: Committee Member Poindexter —1. Excused: None. CHR. DAVID: Mr. Clerk, Communication 11.5. Comm. 11.5: REPORT OF FUND TRANSFERS AUTHORIZED: JANUARY 16 — 31, 2019 AND FEBRUARY 1 — 15, 2019 From Controller Kay Oshiro, dated February 27, 2019. Vote on Comm. 11.5: Mr. Richards moved to close file on Comm. 11.5. Seconded by Filed Ms. Eoff and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair David — 8. Noes: None. Absent: Committee Member Poindexter —1. Excused: None. CHR. DAVID: Mr. Clerk, Communication 11.6. Page 2 FC -6 March 27, 2019 Comm. 11.6: REPORT OF FUND TRANSFERS AUTHORIZED: FEBRUARY 16 — 28, 2019 From Controller Kay Oshiro, dated March 11, 2019. Vote on Comm. 11.6: Ms. Eoff moved to close file on Comm. 11.6. Seconded by Filed Ms. Villegas and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair David — 8. Noes: None. Absent: Committee Member Poindexter —1. Excused: None. CHR. DAVID: Mr. Clerk, Communication 149, please. Comm. 149: FORMATION OF AN AD HOC COMMITTEE: FISCAL YEAR 2019-2020 OPERATING AND CAPITAL IMPROVEMENT PROJECT BUDGETS From Council Member Ashley L. Kierkiewicz, dated February 22, 2019, requesting formation of an ad hoc committee to investigate issues relating to the upcoming Budgets, and identify methods to increase efficiency and reduce costs. Postponed: March 12, 2019 (Note: There is a motion by Ms. Kierkiewicz, seconded by Mr. Richards, to close file on Comm. 149.) (Note: Comm. 149. 1, from Council Member Ashely Kierkiewicz dated March 27, 2019, was circulated.) CHR. DAVID: Thank you, Mr. Clerk. There's already a motion. Ms. Kierkiewicz, go ahead, please. MS. KIERKIEWICZ: Thank you, Chair David. You know, as promised, I wanted to deliver a scope of work with a timeline for deliverables for my colleagues to consider. So that has been completed and I do want to thank Council Services for their quick work on getting this in front of my colleagues. I am available to answer any questions. I listened at our last Council meeting to my colleagues, who stated that, "Great job, very ambitious." But, you know, tackle this one bite at a time, and that is what I have proposed in this communication. It's very demanding, but it's very purposeful, and I just want to make sure that I'm doing my part to set ourselves up for success as it relates to reviewing and working on our County budget. Page 3 FC -6 March 27, 2019 CHR. DAVID: Thank you. I believe we all got the Communication 149.1 in our pink folders. Council Members, opening it up for questions. Thank you. Ms. Lee Loy, go ahead. MS. LEE LOY: Again, thank you. Thank you, Chair. And again, Ms. Kierkiewicz, thank you so much for really putting in the effort. I have been a supporter of this idea of an ad hoc committee from my last term. I guess I justI don't know what else more we can do. We have a scope of services. It's been phased. It's been thoughtfully phased. It provides a timeline of deliverables. Chair, I guess my question, how do we begin to move this forward? And I don't expect this to be a one and done. I think this will evolve over time. I think our Chair Chung mentioned that last time we met. The strategies, the functions, I think the situation is ripe. We have the Charter Commission reviewing our overall Charter. We'll be moving into the General Plan. I haveI'm still combing through our own Council Rules and Procedures. I have actually waited on that a bit because there are some things I want to introduce within our own Council Rules of Procedures, but I need the framework of the Charter to be fixed and set before I move some of the other things forward. I just think the pump has been primed, and we need to start thinking about how we can be more innovative with our budget. Chair, I yield. CHR. DAVID: Thank you very much. Anyone else? Mr. Richards, go ahead. MR. RICHARDS: Thank you, Chair. First of all, thank you, Ms. Kierkiewicz, for putting forth this. I once again agree with Council Woman Lee Loy. Well thought out, well phased; an orchestrated, methodical process going forward. I know one of the concerns previously was we have to articulate the scope of what we're going to be discussing. I too, have been a big supporter of an ad hoc Committee to tackle our budgetary concerns and processes since last term. We have a budget presented to us that has grown from about $462 million to $575 million in just over two years. We have to examine this once again from the perspective of our constituency. They are concerned that we are spending funds wisely, and we have to have a different approach for approaching the concern that they put forth. I completely agree with their concern. This allows us to have these conversations and structure it such that we can dig down, drill down to what the concerns are and try and come up with a good thought process going forward, and also set the stage not for this year, but for coming forward. I spent a lot of time in the last couple of months talking to other counties within our state, comparing notes and seeing how they do things. There is no one set process, but I think we can glean some of the better things that they are using and avoid some of the things that they don't find working as well. I think what Page 4 FC -6 March 27, 2019 Ms. Kierkiewicz has put forward here embraces some of the better processes that they do. So I look forward to working with this. I am very pleased to support putting this initiative forward, because I think we can make a huge difference if we approach it from a new perspective. At this point, I yield. CHR. DAVID: Thank you very much. Anyone else? Ms. Eoff, go ahead. MS. EOFF: Thank you, Madam Chair. Thank you, Ms. Kierkiewicz. I think you've broken it down into some, as you noted, some tasks and measurable and deliverables. I've never seen an ad hoc committee formed before that, like a three-phase process, where we would get reports periodically. I'm just wondering, is that—did you check with Corp. Counsel and the Clerk's Office to make sure that would be an okay way to arrange this committee? CHR. DAVID: Thank you, was that for a response from Ms. Kierkiewicz? MS. EOFF: She said she hasn't had feedback from— MS. KIERKIEWICZ: Corp. Counsel did not flag on whether or not we were permitted. MS. EOFF: If the three -phased approach is going to be—would it be okay if I asked the Clerk? To me this is a little bit different than the normal ad hoc committee that comes back with a report that investigated certain items, and then gave us a report, then there may be some action taken, but is this going to work out okay? I think it's a good breakdown. I think the phasing makes sense, and it's all good information that we can benefit from. I'm just wondering, do you think that there's anything we need to adjust to make it appropriate for an investigative committee. MR. HENRICKS: If I understand, your question is that a typical ad hoc committee would have essentially one phase, be assigned for a specific purpose, and then provide that report. Then it's clear in our rules and it's clear in the State law as far as the process; create, work, report, potentially take action. Whereas this is a much different approach wherea different approach I should say, where there are multiple phases and multiple reporting periods and then potentially different actions taken at different periods based upon the work of the ad hoc committee. I can't say from my position that I would have any position on that, whether or not that is something that is, you know would meet the criteria of the State law or our rules. Perhaps ultimately it's up to this body to make that determination as Page 5 FC -6 March 27, 2019 to whether not it's appropriate, then of course also anything this body does can be scrutinized by the public in a variety of forms. MS. EOFF: Okay. I just wanted to make sure that we keep it on track, with the State and our own rules. MR. HENRICKS: Yeah, I understand the point you're making. MS. EOFF: The only other option I would think would be potentially to dissolve it after each phase and then restate the new ad hoc committee with the new purpose. But I don't know if that would be necessary or if this would be alright. MR. HENRICKS: I think that you're the first group of people to make that determination. MS. EOFF: It's just a thought I had. I don't really have an opinion, because I don't know. I just felt it was a little bit different. MR. HENRICKS: Sure. It is, but I can't say whether or not that's something that is an impediment to moving this forward. MS. EOFF: Thank you. CHR. DAVID: Do you yield? Thank you, Ms. Eof£ Anyone else? Thank you. Mr. Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: I just wanted to say good job, Ashley, putting this together. You did a nice job. I like that you phased it out, gave a good timeline, and did your homework. I think the timeline is fair too. That was important. Good job. Thank you. CHR. DAVID: Anyone else? Alright, if no one else is going to—oh, do you want to say something? Sure. I'm going to recess this committee for five minutes. Thank you, we're in recess. Recess: At 2:24 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 2:31 p.m. CHR. DAVID: Thank you, everyone. I'm calling the Finance Committee out of recess, and Ms. Lee Loy, would you like to make a motion? Page 6 FC -6 March 27, 2019 Motion to Enter into Executive Session: Ms. Lee Loy moved to enter into executive session pursuant to Hawaii Revised Statutes Section 92-5(a)(4), for the purpose of consulting with the Council's attorney on questions and issues pertaining to the Council's powers, duties, privileges, immunities and liabilities regarding Resolution Number 149. Seconded by Mr. Richards. CHR. DAVID: Any discussion? MR. HENRICKS: Madam Chair, prior to the vote, just maybe a little bit of context for the record as to the purpose for the executive session. Just enough to get us there but not necessarily anything as to—yeah. CHR. DAVID: Yes. Mr. Chung, can you? MR. CHUNG: We're actually treading on new ground here, and we want to make sure that whatever we do particularly when it's a subset of the entire board, that we're doing things properly, right? I just want to be able to speak with our Corp. Counsel on these matters. We certainly want to do things right, but in the framework of the County Charter and whatever other State laws there may be. CHR. DAVID: Thank you very much for that explanation. Any discussion before we take a vote? Alright, all those in favor of going into executive session, please say "aye." Vote on Motion The motion to enter into executive session pursuant to Enter into to Hawaii Revised Statutes Section 92-5(a)(4), for the Executive Session: purpose of consulting with the Council's attorney on Questions and issues pertaining to the Council's powers, duties, privileges, immunities and liabilities regarding Communication Number 149 was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair David – 8. Noes: None. Absent: Committee Member Poindexter –1. Excused: None. Recess: At 2:32 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 3:34 p.m. Page 7 FC -6 March 27, 2019 Formation of CHR. DAVID: Aloha, Council Members. Welcome back. I'm calling Finance Ad Hoc Committee: Committee out of recess. Alright. As Chair I'd like to proceed with formation of an ad hoc committee pursuant to the contents of Communication 149.1. So I would designate the following Council members as the ad hoc committee. I would like to name Ms. Kierkiewicz as Chair of the committee, and members Tim Richards, Sue Lee Loy, and Rebecca Villegas, to make up the ad hoc Committee. If anyone has anyone else to say we can MR. HENRICKS: So scope and investigation is covered under CHR. DAVID: Yes, and their scope is covered under Comm. 149.1 as submitted by Ms. Kierkiewicz. MR. HENRICKS: Thank you, Madam Chair. CHR. DAVID: So any discussion on this formation of the ad hoc committee aside from saying thank you very much, everybody for the robust and vehement discussion. Hang on one second. Mr. Clerk, is there anything else, given the fact that we've discussedI mean what we've had in executive I need to say as far as the formation of the ad hoc committee at this time? MR. HENRICKS: Not that I'm aware of. I mean it seems fairly clear. You've named the membership. The scope has been presented in a public meeting. Barring any other issues it seems to me like the committee then is able to proceed with its work. CHR. DAVID: Hang on. I need to take a recess for like one minute, okay? We're in recess. Recess: At 3:46 p.m., the Chair called for a recess. Reconvene: The meeting reconvened at 3:48 p.m. CHR. DAVID: Welcome back everyone. I'm calling the Finance Committee out of recess. Thank you, Mr. Clerk. I would like to now turn it over to the Chair of the ad hoc committee, Ms. Kierkiewicz. Go ahead, Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you, Chair David. I just wanted to state for the record that when we were as a Council delivered the proposed budget for the upcoming fiscal year, I noticed that there were 72 new positions that were being proposed for the County. That really blew my mind, and if you know me, you know that I am not a rubber stamp, and I like to really dive into things and Page 8 FC -6 March 27, 2019 investigate for myself If something is in the best interest of the community, I certainly want to be able to support that. Just that there, the creation of those new positions really caused me to think that we need to be looking at our budget in a different way. So the work of this ad hoc committee will do just that. And the work of this body will commence once we get a legal recommendation from Corporation Counsel. They are looking for information from the Office of Information Practices (OIP). Once we get the green light from OIP, the work of this ad hoc committee will begin. CHR. DAVID: Thank you, Ms. Kierkiewicz. For now, I think our procedure is I need a motion to postpone Communication 149 and all related communications. Motion to Postpone: Ms. Kierkiewicz moved to postpone Comm. 149 and related communications to the call of the Chair. Seconded by Mr. Richards. CHR. DAVID: Any discussion on the postponement? Go ahead, Mr. Richards. MR. RICHARDS: Thanks, Chair. Just a procedural thing. If we postpone to the call of the Chair, Mr. Kamelamela, how quick do you think you can get an answer. What I'm just thinking is to move things forward. MR. HENRICKS: If I could just interject real quick. Just for Mr. Richard's, the postponement to the call of the Chair for this communication is just to allow this communication to just kind of keep moving forward, then any information or eventual reports provided would be along this communication series. But the postponement of this communication isn't tied to Mr. Kamelamela receiving information from the Office of Information Practices that would then be shared with the Committee Chair as far as the committee to proceed. So it's not tied to the postponement as far as I'm aware. MR. RICHARDS: Okay, as long as they're not linked then I'm good. CHR. DAVID: Thank you very much, Mr. Richards and Clerk, for that. No more discussion? All those in favor of postponing Communication 149 and related communications to the call of the Chair, please say "aye." Page 9 FC -6 Vote on Motion to Postpone: (Approved) ORDER OF RESOLUTIONS: March 27, 2019 The motion to postpone to the call of the Chair was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair David — 8. Noes: None. Absent: Committee Member Poindexter —1. Excused: None. The Chair directed the Committee to proceed to the next order of business, Order of Resolutions. Res. 100-19: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR LEASE FOR ONE MULTI -FUNCTION COPY MACHINE FOR THE DEPARTMENT OF MASS TRANSIT Authorizes the Mayor to enter into a five-year lease agreement with an approximate monthly cost of $200. Reference: Comm. 167 Intr. by: Ms. David (B/R) Vote on Res. 100-19: Ms. Villegas moved to recommend adoption of (Approved) Res. 100-19. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair David — 8. Noes: None. Absent: Committee Member Poindexter —1. Excused: None. BILLS FOR The Chair directed the Committee to proceed to the next order of business, Bills ORDINANCES: for Ordinances. (There were none.) Page 10 FC-6 March 27,2019 ADJOURNMENT: There being no further business, at 3:52 p.m., Ms. Lee Loy moved to adjourn the meeting. Seconded by Mr. Richards and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair David— 8. Noes: None. Absent: Committee Member Poindexter— 1. Excused: None. CHR. DAVID: Thank you very much, Council Members, we are adjourned. Approved: 107/46/0 % IlW ,,,,, „iiiiini fry/.,1 / , ft-0- __ 9 Ms. Maile Medeiros David, Chair Date Finance Committee MD/ja Page 11