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HomeMy WebLinkAboutMIN FC 2019/04/23 2018-2020Committee on Finance 9th Session West Hawaii Civic Center 74-5044 Ane Keohokaloele Highway, Building A Kailua-Kona, Hawaii April 23, 2019 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 9:15 a.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 (came in later) Ms. Karen Eoff, Member Ms. Ashley L. Kierkiewicz, Member Ms. Susan L. K. Lee Loy, Member Ms. Valerie T. Poindexter, Member Ms. Rebecca Villegas, Member Absent & Excused: Mr. Matt Kaneali`i-Kleinfelder, Member STATEMENTS FROM THE PUBLIC ON AGENDA ITEMS The Chair directed the Committee to proceed to the next order of business, Statements from the Public on Agenda Items. The following individuals registered to speak and came forward when called by the Chair: Babette Morrow: (representing `O Ka`u Kakou) Jana Boges: (representing Big Island RC&D/ Beyond Organic Consulting) Bruce Merrell: (representing Hawaii Island HIV/AID Foundation) Derek Park: (representing Paddling for Hope) Comm. 95.2, comment. Comm. 95.2, in support. Comm. 95.2, in support. Comm. 95, in support. FC -9 Change Order of Business: Comm. 221 Vote on Comm. 221 (Approved) Kathy Buono: (representing Rainbow Friends Animal Sanctuary) Jim Kilgore: (representing Full Life) Comm. 95, in support. Comm. 95, comment. April 23, 2019 CHR. DAVID: At this time, Council Members, I would like to take the nominations on the agenda out of order. As directed by the Chair and with no objection from the Council Members, the following items were taken out of order: CHR. DAVID: Mr. Clerk, could you please read in Communication 221, nomination of Isabella Hughes to the Merit Appeals Board? NOMINATION OF ISABELLA HUGHES TO THE MERIT APPEALS BOARD From Mayor Harry Kim, dated April 4, 2019, submitting for the Council's review and confirmation of the above nomination. Requires Council Confirmation by: May 18, 2019 (Section 13-4(1), Hawaii County Charter) Ms. Kierkiewicz moved to recommend confirmation of the appointment of Ms. Isabella Hughes to the Merit Appeals Board. Seconded by Ms. Villegas and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder —1. Excused: None. Committee Members spoke in favor of the appointment. Chair David informed Ms. Hughes that she does not need to appear at the Council meeting for final confirmation of her appointment. CHR. DAVID: Mr. Clerk, can you please proceed with Communication 222? Page 2 FC -9 April 23, 2019 Comm. 222: NOMINATION OF MELVIN VENTURA TO THE MERIT APPEALS BOARD From Mayor Harry Kim, dated April 4, 2019, submitting for the Council's review and confirmation of the above nomination. Requires Council Confirmation by: May 18, 2019 (Section 13-4(1), Hawaii County Charter) Vote on Comm. 222: Ms. Villegas moved to recommend confirmation of the (Approved) appointment of Mr. Melvin Ventura to the Merit Appeals Board. Seconded by Mr. Richards and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder —1. Excused: None. Committee Members spoke in favor of the appointment. Chair David informed Mr. Ventura that he does not need to appear at the Council meeting for final confirmation of his appointment. CHR. DAVID: Alright, Council Members, I think we're going to go to the top of the agenda. Return to Order The Chair directed the Committee to return to the order of business. of Business: COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. CHR. DAVID: Mr. Clerk, Communication 11.8, please. Comm. 11.8: REPORT OF FUND TRANSFERS AUTHORIZED: MARCH 16 — 31, 2019 From Controller Kay Oshiro, dated April 1, 2019. Motion to Close file: Ms. Villegas moved to close file on Comm. 11.8. Seconded by Ms. Poindexter. CHR. DAVID: I believe we have Mr. Hunt in our Hilo office for questions, Council Members. Do you folks have any questions on Communications 11.8, Page 3 FC -9 April 23, 2019 fund transfers? No? Okay, all those in favor of filing Communication 11.8 please say "aye". Vote on Comm. 11.8: The motion to close file on Comm. 11.8. was carried by Filed the following voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder —1. Excused: None. CHR. DAVID: Mr. Clerk, I would like to take Communication 62. 1, and right after that Communication Bill 57 because Mr. Brilhante, I believe, is in our Hilo office and he's here for both of those. Change Order of As directed by the Chair and with no objection from the Council Members the Business: following items were taken out of order: Comm. 62.1: THIRD QUARTER REPORT OF PERSONS EMPLOYED UNDER A CONTRACT FOR LESS THAN 90 DAYS: JANUARY 1 — MARCH 31, 2019 From Human Resources Director William V. Brilhante, Jr., dated April 1, 2019, transmitting the above report pursuant to Section 2-12.5 of the Hawaii County Code. Motion to Close File: Mr. Richards moved to close file on Comm. 62.1. Seconded by Ms. Poindexter. CHR. DAVID: Discussion or questions for Mr. Brilhante, Council Members? Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. Director Brilhante, you're in Hilo? (Note: At this time, Human Resources Director William V. Brilhante, Jr., came forward to address the members of the Committee. MR. BRILHANTE: Yes. Good morning. MS. KIERKIEWICZ: Good morning. Thanks for being available to answer questions. You know, I'm looking at the list of contractors' names. I'm just curious. I see a number of individuals that have been on here before consecutively, actually, so I had just wondered what the rules are around rehiring these people again after 90 days. Page 4 FC -9 April 23, 2019 MR. BRILHANTE: Thank you very much, Council Woman Kierkiewicz, for the question. Actually, when it comes to these 89 -day contracts, we're guided by the HRS (Hawai`i Revised Statutes) and the principle set forth in the HRS. Pursuant to that, we can bring in an employee on an 89 -day contract. They'll serve for the 89 days, and if there's a desire for that individual to continue their contractual relationship or their employment relationship with the County, then we must have a minimum of one day break in service. Then our policy is that they can come back for one more additional 89 -day contract period, and that's the extent of it Now, that being said, an individual could come back later for another position under another contract for doing, you know, for doing a specific job which is different than the previous contractual, you know, which is different than the previous contractual employment responsibility or scope of work that they performed for the County previously. MS. KIERKIEWICZ: Okay, thank you. It's helpful to know. And I'm taking a look at the various salaries. Just help me understand, are there line items in the various department budgets to hire on individuals to fulfill these special contracts? MR. BRILHANTE: Yeah, that's a discussion that each department has with the Finance Department. When we get a copy of the contract, one of the things we do is we vet the scope of work that the proposed employee is going to be performing. We match it up with some type of similar type of classification of work in the County, and that's the guidelines we use to make a determination as to whether or not the salaries are "reasonable." Based on that, you know, that's the extent of our inquiry and to that component. But as I said previously, each department has to ensure through Finance Department that they have sufficient—enough funds available in their current budget to cover these salaries. MS. KIERKIEWICZ: Okay. And if we had wanted to request a copy of the scope of work for their contract, could we just reach out to you and get a copy? MR. BRILHANTE: Oh, definitely. MS. KIERKIEWICZ: Okay, thank you. Thank you, Madam Chair. I yield. CHR. DAVID: Thank you, Ms. Kierkiewicz. Anyone else? Council Members? Seeing none, thank you, Mr. Brilhante. All those in favor of filing Communication 62.1 please say "aye." Page 55 FC -9 April 23, 2019 Vote on Comm. 62.1: The motion to close file on Comm. 62.1 was carried by Filed the following voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder —1. Excused: None. CHR. DAVID: Mr. Clerk, can you go to Bill 57? Bill 57: ADOPTS A PAY PLAN FOR PERSONS EMPLOYED BY THE COUNTY OTHER THAN THOSE WHOSE PAY IS OTHERWISE PROVIDED FOR, DESIGNATES PAYROLL PERIODS, PAY DAYS, PRESCRIBES REQUIREMENTS WITH RESPECT TO OFFICIAL FIDELITY BONDS, AND REPEALS ORDINANCE NO. 18-53 AND ALL AMENDMENTS THERETO, SAID ORDINANCE TO BE KNOWN AS THE SALARY ORDINANCE OF 2019 Establishes rates of compensation for appointed employees in the Legislative Branch and the Office of Housing and Community Development, the County Physician, and Student Helpers and Senior Community Services Aids for various County agencies. Reference: Comm. 223 Intr. by: Ms. David (B/R) Motion to Close File: Ms. Villegas moved to recommend passage of Bill 57 on first reading. Seconded by Ms. Poindexter. CHR. DAVID: Discussion, Council Members? Seeing none, Mr. Clerk, I believe you wanted to say a few words. MR. HENRICKS: Yeah. So when we look at the Salary OrdinanceI'm going to put on the office manager hat right nowclearly, it provides for all of our appointed employees in our branch. And there are quite a few, if you want to call them "pay steps" in here that haven't been utilized in many, many years. We did a quick historical analysis to determine which pay steps haven't been used in at least five years, and there are quite a few. So it would appear then the word "obsolete" is in clay. I wanted to ask if the Council was interested, we could produce an amendment either by postponing this or moving it forward, and looking at amendment in first reading, where those available pay steps would be removed from the schedule. Because we don't believe that they'll actually would be used any time in the near Page 6 FC -9 April 23, 2019 future. So it would just be an amendment to remove pay steps, that again, haven't been used in quite some time. Not to add any at this point and time. But before I put that forward, I just wanted to get a sense from the Council that's something that would be at least something that would be okay to consider by the Council. CHR. DAVID: Thank you, Clerk. I'm going to go to Ms. Poindexter then Ms. Lee Loy. MS. POINDEXTER: And I think removingI would agree with that. I think the last time what we had—when we tried that, I think it was—you know, you couldn't—like a, b, c, d, and then removing that. But then in the salary, the ordinance, would start with e, f, g. You couldn't go put those back to a, b, c, d. MR. HENRICKS: Right. MS. POINDEXTER: Because who's in that category now MR. HENRICKS: Sure. MS. POINDEXTER: —and they wouldn't get paid because they're listed as this, and not an "a". It was just a little crazy. But we couldI guess you could put a line through it and say, "These are no longer"—because changing it to a, b, c, d wouldn't work. MR. HENRICKS: No, that wouldn't be what we would be looking at. MS. POINDEXTER: Yeah. MR. HENRICKS: It would be just removing those lower, if you want to use that phrase, letterings, and just retaining the letterings that are existing, so it doesn't disrupt our HR (Human Resources) issues. And again, I think one of the reasons why isI think it's important we put out a Salary Ordinance that we—for public inspection, too. It's something that the public could reasonably expect for people to get paid here. At this point and time, some of the salaries areI mean, in my estimation, very low for the amount of work and the type of professionals we ask to do this work. So I think it would be appropriate to kind of clean up the Salary Ordinance. But again, I wanted to make sure that was something the rest of the Council would be amicable, at least to look at it and consider. MS. POINDEXTER: And lining it out would be appropriate, and leaving it in there? MR. HENRICKS: No, it would actually just be removed, and we would start Page 7 FC -9 April 23, 2019 MS. POINDEXTER: And start with MR. HENRICKS: Correct. MS. POINDEXTER: Because then MR. HENRICKS: Correct. MS. POINDEXTER: Because then it would—when you talk about the public looking at it, then they're going, "Well, what happened to a, b, c, d; why are they getting blah, blah, blah?" MR. HENRICKS: Right. MS. POINDEXTER: You know, when we talk about making it easier for the public, we've got to think about that also. MR. HENRICKS: Sure, but I would—okay, very good. CHR. DAVID: Thank you, Ms. Poindexter. Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Chair. I'm all for cleaning up—cleaning house. I'm all for that. So I'll be more than happy to support moving this forward and working with out Clerk for a future amendment, but also running it through the courses with Bill Brilhante over at Human Resources to make sure that it is appropriate on how we edit this document. Those are my thoughts. MR. HENRICKS: We certainly would present our proposed amendments to Mr. Brilhante for his review. And something that we could look at doing, is if we were interested in relettering the pay scales or steps, if we want to call it that. So, they would start with "a" and end wherever they need to end. We could look at redoing paperwork, essentially. This would take effect on July 1, so there will be some time to prepare to have the Council Chair and myself sign paperwork where people would not have the increase or decrease in pay, but because the letter that they are assigned to on that scale, we need to change. We could prepare for that so that we could truly update this so that it would look reasonable to somebody. Again, why are we starting with—because as you can see, there currently are some positions where we start at "c." Historically, things have happened over the years, to why do some go to s and some go to e? So we've kind of looked at all those things. We thought, Well, let's not just kind of leave it as is, let's do something reasonable. What we thought would be reasonable, is just again, Page 8 FC -9 April 23, 2019 removing those potential steps that haven't been used in a long time. We can look at creating—starting at a and then preparing paperwork so that no one would be displaced. Come July 1, we'll be ready to go. CHR. DAVID: Thank you. Ms. Lee Loy, are you? Thank you very much. Anyone else? Thanks for that discussion, Council Members, especially for reaching out to our HR Director, Mr. Brilhante. So that being said, all those in favor of approving Bill 57 and moving it to Council with a positive recommendation please say "aye." Vote on Bill 57: The motion to recommend passage of Bill 57 on (Approved) first reading was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David – 8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder –1. Excused: None. CHR. DAVID: Alright, thank you. Mr. Clerk, I guess we can move up, back to the top of the agenda. Return to Order of The Chair directed the Committee to return to the order of business. Business: CHR. DAVID: Communication 95. Comm. 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. Postponed: February 19 and April 9, 2019 (Note: There is a motion by Mr. Richards, seconded by Ms. Kierkiewicz, to close file on Comm. 95.) ; and Page 9 FC -9 April 23, 2019 Comm. 95.1: From Finance Director Deanna S. Sako, dated February 11, 2019, transmitting the applications from eligible nonprofit organizations for the Council's review and appropriation of funds for the Fiscal Year 2019-2020 nonprofit grant program. ; and Comm. 95.2: RECOMMENDATIONS FOR GRANT APPROPRIATIONS TO NONPROFIT ORGANIZATIONS From Finance Committee Chair Maile David, dated March 22, 2019, transmitting the Finance Ad Hoc Committee's recommendations for grant funding to nonprofit organizations for inclusion in the County of Hawaii Operating Budget for Fiscal Year 2019-2020. A total of 160 eligible applications were received with requests totaling $4,289,207. The recommendations have been developed through a review of all applications with each applicant. CHR. DAVID: Thank you, Mr. Clerk. That was mouthful. We already have a pending motion by Mr. Richards and seconded by Ms. Kierkiewicz to close file on Communication 95. So given that, if it's okay with Council Members, I just wanted to give a brief summary of the ad hoc committee's work and the recommendations that you have before you. On January 31, 2019, 160 applications were received by the Department of Finance. Six applications were determined ineligible and two applications were withdrawn, so now we were left with 152 eligible applications, with request that totaled $4,289,207. Last year, there were 180 eligible applications, with request totaling $5 milliona little over $5.6 million. On February 11, 2019, we received the eligible applications from the Department of Finance for review and appropriation of funds; then on February 19, at a meeting of the Finance Committee we formed an ad hoc committee for the purpose of application reviews, applicant interviews, and award recommendations. We conducted 152 nonprofit interviews on March 14, 15, 18, and 19, and these interviews took place at Council Chambers in Hilo. Ninety-nine interviews took place in Hilo and fifty-three took place at the West Hawaii Civic Center. On March 22nd, the ad hoc committee determined the recommended award amounts for each of the applicant organizations, and the ad hoc committee members were able to designate specific performance measures, expenditures, and directives to the awardees. So although the amounts requested by organizations far exceeded recommended award amounts, all of the applicants expressed their understanding and conveyed their determination to continue providing services to the needs of our increasing population. Page 10 FC -9 April 23, 2019 So Exhibit A to Communication 95.2 is a spreadsheet that shows the ad hoc committee's recommendation for fiscal year 2019-2020, using the preliminary budget appropriation in the amount of $1.5 million. At this time, I'd like to open the floor for discussion to Council Members. Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Chair. I wanted to take a moment to thank the other members of the nonprofit committee: Ms. David, Ms. Villegas, and also Mr. Kaneali`i-Kleinfelder, and also to their staff. They're always so very helpful, including mine, of Council District 3. I also wanted to thank Mr. Villegas and Mr. Kaneali`i-Kleinfelder for walking through four days of nonprofit hearings and just sitting patiently and listening to the larger the need of our island. It's often tough, but always just very gratifying in the end. But most importantly, I think the first perspective of our freshmen colleagues, and then the balance between, you know, our rural communities, our urban communities, it was a well-rounded group. I just want to thank you for rounding out our strengths but filling the gaps in our weaknesses. I cannot thank you both enough. I think the larger picture that I do want to share with the rest of my colleagues is that one reoccurring theme in all of these nonprofit requests was that the lava and Hurricane Lane really put extra pressure on these nonprofits. So when we think about the impacts of our island, these nonprofits touched the most vulnerable in our community. When there is just these types of events, the need gets a lot larger. So I just really needed to share that these nonprofits really saw a spike in the requests to help kids, help kupuna, you know, animals. Whatever their mission was, we saw it really down at the grassroots level. So with that, Chair, thank you for your leadership again in this area. I enjoyed it again. CHR. DAVID: Thank you very much. MS. LEE LOY: Thank you. I yield. CHR. DAVID: Likewise, thank you, Ms. Lee Loy. Ms. Poindexter and then Ms. Villegas. MS. POINDEXTER: And I just wanted to thank all of you who sat on that Committee, because I sat on that early on and it does eat up a lot of our time and commitment. You saved all of us, and we trust your recommendations. So I just want to say thank you for dedicating so much time to support all of our nonprofits. Thank you. CHR. DAVID: Thank you, Ms. Poindexter. Ms. Villegas, go ahead. Page 11 FC -9 April 23, 2019 MS. VILLEGAS: I also just want to say thank you. Being fresh to this process, it was an honor and a privilege to get to participate in this capacity, of allocating resources or making the recommendations of where to allocate resources. In my prior life, in the private sector, I was able to work with a number of nonprofits, both in this County and around the State. It was a real pleasure and a joy to reconnect with some of those same people, as well as to learn in a new capacity, even more details, specifics, about what's (9:27:25 Part I) nonprofits are working on. Some of the issues that they're trying to tackle are the issues that we consistently hear about as Council Members. I am incredibly grateful for the collaborative work that's being done between private, nonprofit, and government organizations. I didn't know about this program in our County until this opportunity, and I don't know how many other people know about it. But I think that it's powerful, it's generous, it's connected, and it just exemplifies the responsibility and the kuleana that is recognized—and taking that opportunity to allocate resources that are so precious to every one of us, that come from the hard-earned tax dollars of our constituents. So, I'd like to thank the Mayor for his increase in that funding, from what's required according to the County Code, of being $1 million and increasing it to the $1.5 million. So I'd also like to thank Sue and Maile for their leadership and guidance. I also wanted to remind the community and some of the nonprofits that requested, you know, we were—we had more than almost three times the funding requested than we're capable if providing. There also were stipulations in how we could fund, based on whether or not it's supporting consumables versus purchasing of major assets, and then what that would require legally for the County and ownership. So, I just want to remind people about that. It was a real dance and some trickiness in some of that to make sure that we participated appropriately and followed protocol. Yeah, just mahalo everyone for this opportunity in allowing me to participate. CHR. DAVID: Thank you, Ms. Villegas. Anyone else before I start? Okay. Well, I would like to ditto. Thanks, especially to the ad hoc committee members: Ms. Lee Loy, Mr. Kaneali`i-Kleinfelder, who's not here today, and Ms. Villegas. I believe that the method that we engaged in this time was very collaborative, I believe. It was a very fair and equitable result, as much as we could do. So I really want to thank you folks, the ad hoc committee, for your hard work. I really want to thank our staff, especially Dawn Manago for keeping us in line and giving us all our spreadsheets and paperwork and contacting all the organizations; and Donna Eckersley for helping us coordinate and getting account numbers for all of these nonprofit accounts. Page 12 FC -9 April 23, 2019 Last but not least, Deanna, Ted Schrey, Lisa Tada in Finance, and Mayor, thank you for doing this again this year. Other than that, Mr. Clerk, I believe we already have a motion to file communication, or do I need another one for the recommendation, 95.2? MR. HENRICKS: Yes, for the Committee to accept or approve the recommendations of Communication 95.2. CHR. DAVID: Approve the recommendations, okay. May I please have then a motion to approve the recommendations and file Communication 95.2? Vote on Comm. 95.2: Ms. Villegas moved to close file on Comm. 95.2 and accept the (Approved) recommendations of the ad hoc committee for inclusion of Bill 30, the Operating Budget for Fiscal Year 2019-2020. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder —1. Excused: None. CHR. DAVID: Now, Mr. Clerk, I believe, Communication 95? MR. HENRICKS: It's the vote to wrap that up and dissolve it in Committee. CHR. DAVID: Yes, okay. Please take a vote then, all those in favor of filing Communication 95 and all related communications please say "aye." Vote on Comm. 95: The motion to close file on Comm. 95 and all related (Filed) related communication was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder —1. Excused: None. CHR. DAVID: Thank you very much. Mr. Clerk, can we please move to Resolution 130, please? Page 13 FC -9 April 23, 2019 Res. 130-19: AUTHORIZES THE OFFICE OF THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE HAWAII TOURISM AUTHORITY, STATE OF HAWAII, PURSUANT TO HAWAII REVISED STATUTES SECTION 46-7, FOR A GRANT TO THE HAWAII COUNTY RESEARCH AND DEVELOPMENT DEPARTMENT Funds in the amount of $35,000 would be used to develop a Hawaii Island Tourism Strategic Plan, for the purpose of increasing communication, interaction and understanding between industry stakeholders, residents, and the visitor industry. Reference: Comm. 224 Intr. by: Ms. David (B/R) Vote on Res. 130-19: Mr. Richards moved to recommend passage on (Approved) Res. 130-19. Seconded by Ms. Lee Loy and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder —1. Excused: None. CHR. DAVID: Mr. Clerk, please move on to Bill 58. Bill 58: AMENDS ORDINANCE NO. 18-68, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2019 Appropriates revenues in the State Grants — Hawai`i Island Tourism Strategic Plan ($35,000); and appropriates the same to the Hawaii Island Tourism Strategic Plan — State account. Funds would be used to increase communication, interaction and understanding between industry stakeholders, residents and the visitor industry. Reference: Comm. 224 Intr. by: Ms. David (B/R) Page 14 FC -9 April 23, 2019 Vote on Bill 58: Ms. Villegas moved to recommend passage on Bill 58. (Approved) on first reading. Seconded by Ms. Eoff and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder —1. Excused: None. CHR. DAVID: Mr. Clerk, I believe we can proceed with Communication 149. 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 and 27, 2019 (Note: There is a motion by Ms. Kierkiewicz, seconded by Mr. Richards, to close file on Comm. 149.) ; and Comm. 149.1: From Council Member Ashley L. Kierkiewicz, dated March 27, 2019, transmitting a draft scope of work and proposed timeline of deliverables by the Budget Ad Hoc Committee. ; and Comm. 149.2: From Finance Committee Chair Maile David, dated April 9, 2019, providing the Office of Information Practices' response to a request from the Corporation Counsel seeking advice regarding the formation of a Budget Ad Hoc Committee. CHR. DAVID: Thank you, Mr. Clerk. Mr. Kamelamela, would you like to come up to the table before we start discussion? (Note: At this time, Corporation Counsel Joseph Kamelamela came forward to address the members of the Committee.) CHR. DAVID: Council Members, discussion? Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. I think you and my colleagues here today would agree that after last week's budget hearing, it's very clear that we Page 15 FC -9 April 23, 2019 need to hone in on the process of how our County formulates its budget and really start to really move the needle in the direction of budgeting for outcomes. That's not going to happen over night. I feel that the formation of an ad hoc committee to study this and other things that I've outlined in the communication is really critical. Having said that, our last discussion about the formation of this ad hoc was that—our Corp. Counsel, Mr. Kamelamela would seek guidance from the Office of Information Practices (OIP), and they have provided us with an opinion. So at this point, I ask that we postpone this communication once more to the May meeting, while we consult with OIP on what our options are. CHR. DAVID: Thank you. Thank you, Ms. Kierkiewicz. Mr. Kamelamela, do you have anything to add to that request for postponement? MR. KAMELAMELA: I just wanted to say good morning, Chair and members of the Council. No, I don't have anything else to say. CHR. DAVID: Okay, thank you. Anyone else before we take the motion to postpone? Ms. Kierkiewicz, you're making a motion to postpone to our next meeting, May 7Ih . Motion to Postpone: Ms. Kierkiewicz moved to postpone Comm. 149 to May 7, 2019. Seconded by Mr. Richards. CHR. DAVID: Mr. Richards, go ahead on the postponement, please. MR. RICHARDS: I think Ms. Kierkiewicz articulated it quite well. We are seeking our way to best discuss and come up with good solutions for our budget. With the communication coming back from OIP, I think the best thing to do is continue seeking that. So I'll fully support a postponement while we sort that through and communicate with OIP. I yield. CHR. DAVID: Thank you. Council Members? Ms. Villegas, go ahead. MS. VILLEGAS: My question then becomes about timing for approving of the budget and how that works. I'm not sure who I would ask this of, if it's you, Mr. Kamelamela, or not. But this puts us in May, and just how that affects as it gets pushed back. How that works on the timeframe for all of us, especially because I'm suppose to be on the ad hoc committee. I yield. CHR. DAVID: Thank you, Ms. Villegas. Timewise, Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair, if I may? You know, the intention with this ad hoc was to really look at ways in which we could affect this current budget, by just thinking differently, and I think we've articulated that quite clearly over the last week of budget hearings. Having said that, if the formation of this Page 16 FC -9 April 23, 2019 ad hoc committee is not able to align itself with our current budget timeline, I think the conversation still needs to be had at some point, in this Council term, where we are done changing the trajectory and the way in which we craft our budget as a County. So we may not be able to affect the change we want to see in this fiscal year, upcoming fiscal year, but I don't think we should be deterred at all in making moves to try to change things going forward. I yield. CHR. DAVID: Thank you, Ms. Kierkiewicz. Mr. Chung, go ahead. MR. CHUNG: Yeah, I was basically going to say the same thing, but I couldn't say it as nicely as Ms. Kierkiewicz. You know, I did state earlier, when we were entertaining this idea, this is going to be a work -in -progress, right? The ask for the ad hoc committee was made right during the budget time. I think realistically it's going to be difficult for us to have this ad hoc committee up and running for this budget. But as Ms. Kierkiewicz stated, "It's a different way of looking at the budgeting process." So going forward, I think there will be more discussion, more ideas coming up. And over next several years, you know this idea, in whatever form it takes, will start taking shape. That's my understanding. That's my belief. But thank you, all of you, for your good work. CHR. DAVID: Thank you, Chair Chung. Anyone else wishing to comment before I take the vote on the motion to postpone? Alright, all those in favor of postponing Communication 149 and all related communications to our May 7h meeting please say "aye." Vote on Motion to The motion to postpone Comm. 149 and all related Postpone: communications was carried by the following voice vote: (Approved) Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David – 8. Noes: None. Absent: Committee Member Kaneali`i-Kleinfelder –1. Excused: None. CHR. DAVID: Mr. Clerk, the last thing on our agenda is Communication 225, which I was told that Mayor would be available at 11. MR. HENRICKS: Would you like to recess until—like an hour from now to give him? CHR. DAVID: I think so. To give him some time to Page 17 FC -9 April 23, 2019 MR. HENRICKS: To have that discussion. CHR. DAVID: Yes. When is our next? MR. HENRICKS: 1:00 o'clock, quite some time from now. CHR. DAVID: Yeah, I think we'll take a recess because Mayor would like to be present for this discussion. MR. HENRICKS: Until? CHR. DAVID: Until 11:00 o'clock. MR. HENRICKS: Perhaps—he said at—maybe if we should give him a little extra time, just in case. CHR. DAVID: 11:00. MR. HENRICKS: Because once we go in, we're going to be that's all we have left. Maybe 11:10, just to be sure? CHR. DAVID: 11:15. MR. HENRICKS: And then we'll contact the Mayor's office to let them know. CHR. DAVID: Thank you very much. We're in recess until 11:15. Thank you. Recess: The Chair called for a recess at 10:13 a.m. Reconvene: At 11:21 a.m., the meeting reconvened. CHR. DAVID: Welcome back to the Committee on Finance. I'm calling this meeting out of recess. CHR. DAVID: Mr. Clerk, could you please read in Communication 225? Comm. 225: REQUESTS AN UPDATE FROM THE MAYOR'S OFFICE REGARDING LEGISLATIVE DISASTER AID FUNDS From Council Member Herbert M. "Tim" Richards, III, dated April 5, 2019. Motion to Close File: Mr. Richards moved to close file on Comm. 225. Seconded by Ms. Lee Loy. CHR. DAVID: Mr. Richards, go ahead. Page 18 FC -9 April 23, 2019 MR. RICHARDS: Again, spring -boarding on this. We had very clear instructions from the Legislature that they wanted good communication and oversight of the expenditures that we would be incurring, working towards our disaster relief. So with that, this afforded us the ability to discuss this in Council and Committee. So with that, I understand we're going to have a conversationa presentation, coming forward. CHR. DAVID: Thank you. I see Mayor in our Hilo office. Good morning, Mayor, would you please come to the table? (Note: At this time, Mayor Harry Kim came forward to address the members of the Committee.) CHR. DAVID: Thank you very much. You can proceed whenever you're ready, on the overview, an update. MAYOR KIM: Thank you. Alright, first of all, I'm sorry I'm only one here because everyone else is tied up. I feel so odd looking at empty chairs and talking, but that's okay. If I turn, I guess it will be even odder. Anyway, in regards to—first of all, I'm not (??? NOT??? I played it over and that's what I heard, or is it I'm now very..) very grateful for all of the Council's help in acquiring $60 million from the State Legislature. As you know, it was not a slam-dunk anywhere along the line for many different reasons, and one of the major reasons, obviously, is the tight money situation for the State. However, the $60 million is going to be quite a way as far as where we can go. The most important thing, maybe I shouldn't say a priority but for us it is, a great concern otherwise it would have to come before the County Council. As you know, we fortunately never had a necessity to come before you for emergency appropriations. Any disaster of this size, I think, if you look at all of the records, dating back to whenever, the Civil Defense organization or the Mayor's office had to come before the Council for emergency appropriations for ongoing expenses. That was avoided primarily because the State, through Governor Ige, gave us some money throughout. In regards to the money we're talking about now, specifically the $60 million, that the Council as some of you know were very involved in going to the Legislature to present testimony in various committees to ensure that we get that. That is now appropriated to us. And as Councilman said, you know, in regards to monitoring, assurances were given by us that monitoring is not a problem for us. Accountability is not a problem for us in any requirement on those funds, and we will do that. Page 19 FC -9 April 23, 2019 The first source of monies that we are going to use will be on the starting and the completion of Highway 132. I was just told, within a weekI guess, this is Tuesday, so it was yesterday, by Public Works, that survey of that Highway 132 is completed, and we can start on ground surveying. Our goal on 132, of approximately and I say "approximately" because this year is going to be very rough as far as specifically what we run into, but we estimated that highway alone will cost us approximately $40 million—$37 to $40 million. We hope to qualify for the Federal Government. Because if it's a State highway, 100 percent reimbursement, but we have to be cashed out first. We have to complete this. We hope meet that deadline, and we'll do everything to meet that 100 percentage reimbursement. We have to finish by the first week of October. So our goal on Highway 132 will be this October. Hopefully again, the first week of October. The second use of that money, which we will not have 100 reimbursement, we hope to have at least 75 percent reimbursement, is what we call—it's Pohoiki Road. Pohoiki Road as you know is all of a County road. That reimbursement is taking back about 75 percent. Our estimate of that will be approximately $30 million. We hope to start that surveying and those things as soon as we get well underway on Highway 132. In regards of the rest of the monies, including the $17 million, I mean, $1.7 million, as you know one of the biggest problems the monies that where it should be used isI guess I can give this as a best example because of a conversation I was just having prior to the doors opening here, is the number of people that you find out that on the Kapoho Beach Lots and Vacationland, that the people are not really interested in any of the specific type of housing program. These are people that hada lot of them percentage, who have all been short- term rentals. Naturally, short-term rentals means that facility homes that we're not living in. In regards to the type of things that we thought would be forthcoming did not, and I'll give a simple answer to that. Kapoho Beach Lot and Vacationland, they both accounted for approximately four to five hundred of the structures that were destroyed, of the total. Of that, I would estimate at least 50 percent of that total were vacation rentals. That's point one. Point number two, in trying to get that of who you are and what your needs are. Federal Government in one of our meetings with them, an inquiry, it changed from my time originally. In regards to reimbursement by FEMA (Federal Emergency Management Agency), eligibility by FEMA, we were told point clearly by FEMA that from hereon in, not meaning this started all but some time ago I guess, no private entity of private subdivisions will be eligible for any Federal grants. In short, we had to give the bad news to places like Kapoho Page 20 FC -9 April 23, 2019 Beach Lots and some members of Vacationland, which were the two major subdivisions, that their organizations would have to foot the bill, I think, except for probably some other loan program, but not through FEMA, 100 percent of the expenses of the road, from the water or whatever, private surveys, for the lots et cetera. So you can see how this is really going to change the tone on what is going to be developed or pursued in those private areas. As far as the other type of programs that they're going to be pursued, it will be heavily dependent on what the surveys will show on what the needs of the residents are. So, I'll be happy to answer any questions. CHR. DAVID: Thank you very much, Mr. Mayor. Council Member, questions? Mr. Richards, go ahead. MR. RICHARDS: Thank you, Chair. And thank you, Mr. Mayor, for giving us the broad overview. In listening to your conversations, roads are first priority. Is that correct? MAYOR KIM: I'm sorry. Say again, sir? MR. RICHARDS: In listening to your list of priority, getting our roads back is your top priority. Is that correct? MAYOR KIM: Top priorities, meaning those that are things that we are going to address first, yes, sir. But in the ongoing thing, from the beginning it was trying to get a good assessment on what the needs are. MR. RICHARDS: Okay. One thing that I didn't hear you touch upon was the economy and the concern for rebuilding our economy. Can you expand that a little bit? Expand on that, please? MAYOR KIM: I think, you know, I guess when I said top priority, that meant $60 million in regards to rebuilding people individual's lives, which to me is all part of the economy; some our business, some are not. But rebuilding people's lives was number one priority from the very beginning. And obviously, included things that we're not talking about the program, but as well as the shelter. But for those of housing, finding housing and programs of that, that was priority number one, and that is still ongoing. Let me, if I may—sorry for the interruption. In regards to you know, there is an individual. I don't think I should give names at this time for various reasons. But we have been helping and working with someone trying to develop aI don't know what to call it. Whether it be a center, or a tourist attraction, or information center, and those stays in the Pahoa area, and that is ongoing. What I'm trying Page 21 FC -9 April 23, 2019 say is, the ongoing that is a block of the economic development that has been ongoing since day one. But I would like to say here, so I don't mislead people. From the very beginning it was a very, very difficult thing because of Federal requirements in regards to not building or spending certain type of funds in Zones 1 and 2. As you know, I guess of common sense, all of the areas that were inundated for the most part was Zone 1, and that may be overlapping some on Zone 2. So when you deal with that, you'll have to walk a fine line that you're not doing some really long-term investment into these areas. Even in County government, many, many residents have asked usa very difficult decision, "Are you going to allow building?" Some people on one side will say, "Why should the County government allow building when you are in Zone 17 However, I think all of you know that the rules are, in County government, or State government, or any government, imposes certain kind of restrictions on their land that costs them finances. For example, prohibiting or anyone from rebuilding in Zone 1, I think we've opened ourselves to liability in regards to the value of that land. Those are the kind of things that had to be discussed. Therefore, at this point and time, we've stated publicly that there will be no, you know, support of any kind of increased density zoning for any property that was inundated. But we will allow rebuilding if it is your private property. Obviously, you must know all of the risks factor. All of the areas that were covered is in either Zone 1 or Zone 2. And even worse, as far as—and this was said in a Kapoho meeting two weekends ago, Hawaii Volcano Observatory made it quite clear; and I'll quote what they've stated, "For now, because we've passed this six-month period, this whole area has been classified as Kilauea is in a quiet period." They are trying to be sure of the accuracy of their words, they are forecasting that—they estimate it might be two or three years or so before there is other activity in Kilauea. Which, by the way, is a first time. Since 1983, there is no activity in Kilauea, which started in Pu`u O`o, I think, in January of 1983. What they estimated also is they forecast or predict no lower southeast rift zone eruption probably for the next—within the next 10 years. And, I guess, the emphasis of the word was "within," meaning a range. So you can see with that kind of forecast, it's very difficult to bring up programs that encourages people and develop in this area. MR. RICHARDS: Okay, and I do appreciate that, Mayor. You were talking about areas of concern for rebuilding. But again coming back to my question, concerning the economy. It would appear that our economy took a pretty substantial hit. Though the physical damage was primarily done on east side, the economy as a whole was hit island -wide. What I'm looking for is some thinking. Some innovative thinking, that how are we going to stimulate that more? Page 22 FC -9 April 23, 2019 Our Tourism Authority has received funding to help increase the marketing. But it would appear that we have a shift in—and I'm hoping, I'm holding my breath on this, that we have a shift in a visitor pattern coming to the Big Island. Plans for helping to change that. You have something that you can discuss with us on that? MAYOR KIM: I'm hesitating becauseI don't want to go into that now, but I will. I think all of us have a different philosophy in regards to economic development, what is good and what is not so good. I've always contended that we should not put all of our eggs in one basket, and that is of the resort industry. Realizing how important that is, but we should not put all of the eggs in one basket as other counties has. You pay the price in various ways. One of the baskets what we thought that would be good for this island is something you may know, is developing Mauna Kea. It's a place of size and a place of education and secondary businesses. In regards to the volcano, the direct area, as I stated the example, working with people in trying to develop a tourist information type of center, where people can go. We are hoping that also to draw back. I think a lot of the drops of the tourism here was because of Hawaii Volcanoes National Park, which is obviously stated, it's a volcano national park. One of the tremendous drops is the kind of fear factor that was developed nationwide and maybe even worldwide on what really was happening, and what part of the island was or was not affected. Not to be facetious or taken lightly, but if you constantly have to tell people that it was only a spot in Puna and not the whole island in danger, I think that is well-known now. I think one of the first stage that impacted our tourist industry, obvious one, was the cancellation of a tour ship. Not wanting to come when it was perfectly safe for them to come to Hilo and Kona, and within that, they canceled it. Shortly thereafter, they did reinstate those tours. As far as directly on Puna, I think Highway 132 opening, again, October will open up quite a bit of sightseeing in regards to both Fissure 8 as well as of the inundated area. I'm sure that will bring some back, but I don't think that's going to be a huge percentage in comparison to the whole that was affected. But I think the greatest thing that will draw people back to this island will be the reopening of the Hawaii Volcanoes National Park, which was greatly affected. Not by the flow itself, but for three reasons. One, the highways being affected by earthquakes. Two, the subsidence of Halema`uma`u area, that caused great damage to the infrastructure of Hawaii Volcanoes National Park as well as Hawaii Volcano Observatory (HVO). Now that's settled and now that, you know National Park is trying their very best to get the tourist industry back, and they're being very successful on that. I think it would be beneficial to all of us to focus on how even HVO, any rumors of that—going away to Oahu, which I find very, you know, questionable, you know, why? Page 23 FC -9 April 23, 2019 But anyway, I ask all of us to put efforts to make sure that they come back here. Because even that, of size ( 9:01:16), was a draw to tourists. All of those things are combined. But I think the greatest thing that kept people away was the fear factor because of all of the publicity on the type gases, which we're truly exposed to; the roadblock that we're not allowed into, including National Park, including Hawaii Volcano Observatory. Obviously, including inundations areas have all kind of settled, and I think we will hopefully see a comeback some, if not, all of the tourists industry that we lost. As far as your direct question, "What are we doing as far the business?" Well, we're not doing anything very directly at this point except for those thatI told you that we are doing in Pahoa. Hopefully, the tourists industry publicizing what is available now, and hopefully the plans of opening up Highway 132 will be also be an additional draw. MR. RICHARDS: Okay, thank you, Chair. I'm going to yield at this point. want to hear what my colleagues have to say. CHR. DAVID: Thank you, Mr. Richards. Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. Thank you, Mayor, for joining us and for providing the Council with a very, I think, broad overview of everything we need to consider as we work together in partnership with all of us of government and community to rebuild Puna and position Puna to be in a place where people aren't just getting by, because, you know, it's rough out there, but where people are able to thrive. I'm going to get to what my colleague, Council Member Richards, brought up about wanting to energize the economy of the area. But, I want to walk back a little bit. I'm looking at this communication, from Mr. Richards, and it talked about the Legislative Disaster Aid Funds, the $60 million. So $40 million is matching, it's a loan for Federal monies; and then, the $20 million subsidy. Really, no strings attached, so this is a really wonderful situation for us. And in hearing you speak so eloquently about the importance of road recovering restoration, which we all agree on, I have some questions because you're saying that this $60 million is meant purely for roads. I feel very disconnected because my colleague, Ms. Lee Loy, and I were just in a meeting with the Recovery Team, specifically Diane Ley and Roy Takemoto. While roads are a priority, not all of the money that has been provided to the County via the $60 million is meant for roads. I'm wondering, is someone from the Recovery Team available to just provide some clarification? And then I want to go back to some questions I have about the cost of the roads. I see Allie (Alexandra Slous) in the back, next to John Schneider. Allie, are you available to just provide some clarification? Page 24 FC -9 April 23, 2019 MAYOR KIM: Before she—when she comes up, I will say—if I said that all of the money was going to be used for matching, I did not mean to say that because it's a 40/20. I said, "Right now the priority of use of those funds will be of matching funds" in regards to the roads that we are heading into right now. But it was not meant to say all of the money in priority will be for matching funds. MS. KIERKIEWICZ: Okay, thank you for clarifying that, Mayor, because that was one of the things that I had written down, was to get that clarification. So yes, I think we are understanding and all on the same page now, that the $40 million is to match Federal funds for that critical infrastructure. (Note: At this time, Alexandra Slous, Kilauea Disaster Recovery Program Coordinator, came forward to address the members of the Committee.) MS. KIERKIEWICZ: Allie, is there any more that you want to share with the Council on this? MS. SLOUS: Sure. Well, basically I think, the thing to keep in perspective is that there are two main timeframes that we're working within. There's the immediate term, and that's making sure people's immediate needs are being met. And then there's the long-term, which is over a period of time, getting clear and clearer about what we need to do strategically to ensure that the economy does not only recover, but it's ultimately—you know, the ideal is that it's thriving even more than it was prior to the disaster. In the short-term, I believe, probably what you're looking at, is a budget breakdown that we've been discussing over the course of the last few months. Allocating portions of the $20 million to different objectives, such as making sure people are housed appropriately, getting funds into the hands of communities to do the kinds of rebuilding that they need, and making grants available. In the immediate term, through both working directly with businesses and through the case management grant that we're about to stand up, we'll have a better understanding of what the needs are so that we can make short-term decisions as to how to apply those funds and get things kind of back rolling again. MS. KIERKIEWICZ: Okay, that's helpful. MS. SLOUS: Does that help? I'm sorry, I don't actually have the numbers in front of me at this moment, but I can—if you wanted to go through each of those allocations? MS. KIERKIEWICZ: No, I don't think we need to do that. Director Ley and Roy Takemoto were here in Kona last month, and they provided us this glimpse into the breakdown of how they see the various pots of money being spent to Page 25 FC -9 April 23, 2019 achieve the priorities that have been identified to help the community recover. I'm okay with that because tomorrow we're going to have a more robust discussion about the process and the plan going forward as it relates to Bill 36, the $20 million subsidy from the Legislature. So thank you, Allie. Thank you for being there and for providing that additional information. MS. SLOUS: You're welcome. MS. KIERKIEWICZ: Is there anyone from Publics or Finance available to answer some questions? Because, you know, the Council recently approved Bill 46, which allocated monies for Highway 132 work. So I'm just curious, if we're needing to tap the additional $40 million from the Legislature to help pay for this, beyond the $10 million that the County's already allocated as part of its match for this funding. And why is it costing so much, $37 to $40 million? What kind of road are we expecting? Is this like cub -gutter sidewalk, underground utilities? I mean, this is a real diamond road. MAYOR KIM: Well, thanks for the good question because I don't have the answer why everything cost so much. The approximately range of $37 to $40 plus, or maybe more, maybe less, is the best estimate we have now based on just aerial survey. We'll have specifics maybe as we go along. Unfortunately, that's it. Because we may run into things that aerial surveys or even ground surveys will not show, when we run into a very large tube, a hot tube, or those kinds of things. But as far as why, you know, I guess that's a standard question, "Why construction?" Why things cost so much? It was the best estimates we have at this time. Hopefully, as we go along, we will provide you all information we have as far what it is costing as we go along. MS. KIERKIEWICZ: Okay, I'm just curious as to where the cost estimate came from for this $37 to $40 million. I see Steve Hunt there. So I'm hoping for some clarification on the question I had raised, which was we've approved Bill 46, which is dedicated for 132 recovery; that's $50 millions; $40 million from the Feds, $10 million match from County side. And then we as a Council also passed Bill 10, which is a little over $30 million. Again, there was that match from the County side. One of the roads that was identified under that bill was Pohoiki Road, 137, Lighthouse Road, those were the priority projects identified. So I'm just wondering, we have this money that's been allocated for this work. I understand that we need to do the engineering studies and get the permitting, but are we not using those funds to restore those roads? Because I'm hearing a littleI'm just hearing a disconnected piece of information today that caused concern. MAYOR KIM: I don't know what you mean by disconnect. But we'll give you all the information we have as it comes along. One of the things, I think, it's going to be a little, maybe disconnecting, is the fact that this Highway 132, which Page 26 FC -9 April 23, 2019 is the first highway that's going to be—you know, a time to go through would be a temporary road. The reason it's classified as a temporary road, it's going to be a good road or highway, is because it's a Federal highway. If we meet their requirements as far as condition and time, they will reimburse us eventually, 100 percent. As far the condition of the road, it will be a good road but not a permanent type of road. As for schematics, well, it's an important schematic because it's a bed of money. This is not the permanent road, meaning back to its original design or better. This is estimated, again, of $37 million. That's the best estimate we have now. This is an estimate that isI was going to use the word "good," good in a sense that it will be 100 percent reimbursable by the Federal government. MS. KIERKIEWICZ: Okay, I get that, Mayor, but I the $37 to $40 million, that's for temporary or permanent? MAYOR KIM: I hate to use the word "temporary," but it's to qualify for the Federal guideline of a temporary road. If it was a permanent road, I think the design and everything going have to take much longer than we are taking now and the degree of work we are doing now. It is a temporary road because that's the Federal guideline of the type of road we're building. And the reimbursement criteria to meet the temporary road conditions, we have to finish by the first week of October, which is our goal, obviously to get 100 percent of it. If you're going to ask the question, "Are we going to go for a permanent reimbursement after that," that decision have not been made at this time. If you ask me personally, "What is my decision on that," technically, I see no reason to do that. But we are doing this to expedite this highway as fast as possible, as we all know the patience of people wanting us to get it done. I feel this is the fastest way and the best way because it's the financial interest of the County government. MS. KIERKIEWICZ: Thank you, Mayor, for working so expediently with Public Works and others within the County and State and Federal partners to get it done. Allie, if you don't mind, could I call Steve up for just a second, to provide the clarification on the monies that the Council has received from the Federal government through Bill 46, that's 132 restoration; and Bill 10, those are 2018 lava flow projects, and we've identified the priority list of roads? I just want to better understand how those monies are going to be spent. If any of the $40 million that are we are receiving from the State in the form of a loan is going to be used as matched? I'm sorry to be so fussy about all of this. But after what we discovered last week in our conversations with the various departments, specifically Mass Transit and needing to make sure that we keep our eye on the ball and submit and all the necessary paperwork for Federal funding, I just want Page 27 FC -9 April 23, 2019 to make sure that we're clear about how the money is going to be spent so that we're not in a position of spending it incorrectly and then having to pay it back. (Note: Finance Deputy Director Steve Hunt came forward came forward to address the members of the Committee.) MR. HUNT: Steve Hunt, Deputy Director of Finance, for the record. Thank you for the question, Council Member Kierkiewicz. I don't think I can speak to that as it is very fluid at the moment. I know with the alternative, 428 ( 9:14:22 part 2) Project, some of the work that Public Works is doing, in terms of identifying the roads, involves studies through LIDAR (Light Detection and Ranging). Original information that came through either pictometry or drone work to take measurements was not accepted by FEMA. In terms of the $40 million that we're speaking about for the match, until I see a final plan from Public Works, I can't commit one way or another whether those funds may or may not be used for match, for Federal funds. MS. KIERKIEWICZ: Okay, thank you, Mr. Hunt. Thank you, Mayor. Chair, I'm going to yield at this time. CHR. DAVID: Thank you, Ms. Kierkiewicz. Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Chair. Thank you, Mayor, for being here. And I agree with Ms. Kierkiewicz, there's seems to be a disconnect. Maybe you might not feel so, but it's related to the communication. It was related to Legislative Disaster Aid and Funds. Mr. Richards and Ms. Kierkiewicz knows this, we're going to have a very robust discussion tomorrow about where the monies are going. If I could encourage that maybe we postpone this communication, because I truly believe that in tomorrow's conversation there will be more context of how the monies are being spent, and we will actually have our Recovery Team present. But I also would like to ping the Department of Public Works to stand ready for Ms. Kierkiewicz's questions as a it relates to Highway 132, and what type of road that would look like; and also, Pohoiki Road, and how many miles are being paved or reconstructed in some shape or fashion. And to stand ready with that type of information for us tomorrow, if it's okay. I'm really struggling, because like Ms. Kierkiewicz, we're trying to bring clarity into a very complex situation. I'm rather concerned that this may have just muddied the waters a little bit. So, Mr. Richards, if you don't mind, please? MR. RICHARDS: Chair? Page 28 FC -9 April 23, 2019 CHR. DAVID: Yes, go ahead, Mr. Richards. Motion to Postpone: Mr. Richards moved to postpone Comm. 225 to May 7, 2019. Seconded by Ms. Lee Loy. CHR. DAVID: Any discussion on the postponement? MR. RICHARDS: Yeah, I think, actually the timing of this work out quite well because we'll have the robust discussion tomorrow, and then we can have a follow-up conversation in two weeks, so I think this would be a good evolution of time. So I appreciate that, Ms. Lee Loy, for bringing that up. CHR. DAVID: Chair Chung. MR. CHUNG: Yeah, thank you. Yeah, you know, I don't really know if this germane to our motion. Yeah, I actually wanted to thank the Mayor. You know, even if it was a brief presentation, and it could use more refinement, I've got to say that's probably the clearest articulation of a plan that we've gotten from the administration. And I reallyI'm not saying that facetiously. I really do appreciate that. With regard to, and if I may for just one minute, the economic component. You know, I've heard from quite a bit of people. Actually, not only from Puna but from outside of Puna, who are saying that this is a real time to revisit our view of how things could be in the Puna area. They're talking about the possibility of a resort designation; I know that kind of goes counter to what the Mayor talked about. From all accounts—and I haven't been there to see this, but I understand that there's some marvelous beaches that are popping up along that coastline. You know, it's really time that maybe we start to revisit how we look at that area and how we can move ahead some economic development. But I'm going to leave that up to Ms. Kierkiewicz, of course. That is her district. But I've heard people talk about that, so I think we should look into it. Thank you. CHR. DAVID: Thank you for that. Ms. Lee Loy, on the postponement. MS. LEE LOY: Thank you. Just to help Chair Chung understand a little bit. He's absolutely right. Some very bad land use decisions were made in the past as it relates to Puna. So, we do have an opportunity here to reimagine Puna. What Mr. Chung talked aboutI think tomorrow's conversation, and I think Ms. Kierkiewicz would agree with me on this, we see it as more of an opportunity of walking forward rather than walking back. Because it would be sad that we would try and get back to the same requests that the Puna community has been asking for, which is better infrastructure or better opportunities, whether it be economic or opportunities for our farmers, our keiki, our kupuna. So on the postponement, I want to support that, Chair. Thank you. I yield. Page 29 FC -9 April 23, 2019 CHR. DAVID: Thank you, Ms. Lee Loy. Chair Chung. MR. CHUNG: Yeah, and I just wanted to make one clarification, less, people think that we might be out of our mind. You know, with the beauty of having a resort development down in that area is this, it's in a disaster area and could be inundated with lava in the future. But from all accounts, based on what Mayor Kim told us, you know, we have a window, and with these types of developments, we're looking at return on investment. These returns on investment are short -window. I mean, you don't have something existing there for 20 or 30 years. They ca recoup their investment within three years, possibly if it's done right, and hat's why this might be the most suitable use for those areas. Anyway, that's what I've been told. Thank you. CHR. DAVID: Thank you, Chair Chung. On the postponement, I get that was your discussion on the postponement. Okay. Alright. Ms. Kierkiewicz. MS. KIERKIEWICZ: Thank you, Ms. Lee Loy, for bringing up something very important, which is, let's wait until tomorrow to talk story with the Recovery Team. To get clarity on the process, because that's what we've pushing for, is just increase transparency for how all of this money is going to be spent because we want to be accountable for all of that. You know, earlier this morning we had a nominee to the Merit Appeals Board, Melvin Ventura. One of the details about this gentleman was that he was a graduate of Pahoa High School, but now he lives in Kona. I wish he was here so I could ask him, "Hey, Melvin, how come you not living in Puna; why did you choose to relocate to the west side," and I think it's because he felt, perhaps, there wasn't the economic opportunity that he saw here in West Hawaii. I do want to stress upon the fact that with what Mr. Richards brought up and Chair Chung was elaborating on, this really being an opportunity to architect the Puna that we've always wanted, and so, not wanting to squander that. So, Madam Chair, I support the postpone and I look forward to a discussion on this further. Thank you. I yield. CHR. DAVID: Thank you, Ms. Kierkiewicz. If no one else has any comments, then all those in favorI'm sorry, Mayor, go ahead. MAYOR KIM: No, not on the motion. I just wanted to give the appreciation. I'll wait till the motion is the vote is over. CHR. DAVID: Okay, thank you very much for that. Now, we'll go ahead with the vote on the motion to postpone Communication 225 to our May 7 1 Committee meeting. All those in favor please say "aye." Page 30 FC -9 April 23, 2019 Vote on Motion to The motion to postpone Comm. 225 and all related Postpone: communications was carried by the following voice vote: (Approved) Ayes: Committee Members Eoff, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David – 7. Noes: None. Absent: Committee Members Chung and Kaneali` i-Kleinfelder – 2. Excused: None. CHR. DAVID: I believe that brings us to the end of Finance. Mayor, please go ahead with your comment. MAYOR KIM: On roadways and highway's repair, which as we know, quite a bit of understandable anxious to some people to go back. When discussion was held on how and when we can do things, one of the most concentrated people that were in Kipukas or pockets, it was not affected by lava flow, was off of Highway 132. And when PGV (Puna Geothermal Venture) came to the office, wanting to know what the process or procedures for them was to go ahead with a private roadway, they were told like any other resident, "If it's your private roadway, you can do what you want as long as you follow the regular permits." At that time, a request was made from the represents of PGV, that included owners from Israel, that request was made. It's impossible that if you are going to do this—and Mr. Lyman was there giving them permission to go on his private property, "Is it possible to allow citizens that could ingress -egress off of your roadway or highway to their private places?" They said they would try. And not only did they try, they developed a very good monitoring and permitting system. So right now, the vast majority of people whose kipukas were not damaged by lava flow has gained access to the generosity of PGV. CHR. DAVID: Thank you very much, Mr. Mayor. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Communications. (Item for this category was taken up previously, out of order.) BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances.. (Item for this category was taken up previously, out of order.) Page 31 FC -9 April 23, 2019 BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES. Bills for Ordinances. (Item for this category were taken up previously, out of order.) ADJOURN- There being no further business, at 12 04 p.m., Ms. Lee Loy moved to adjourn MENT the meeting. Seconded by Ms. Villegas and carried by the following voice vote: Ayes: Committee Members Eoff, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair David — 6 Noes. None. Absent: Committee Members Chung, Kaneali'i-Kleinfelder, and Poindexter — 3 Excused: None. CHR. DAVID: We are adjourned. Mahalo, Council Members. Approved: Ms. Maile Medeiros David, Chair Finance Committee MD/na �S /3 -1oi� (Date) Page 32