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HomeMy WebLinkAboutMIN FC 2019/08/20 2018-2020 Committee on Finance 17th Session West Hawaii Civic Center 74-5044 Ane Keohokaloele Highway, Building A Kailua-Kona, Hawaii August 20, 2019 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 4:10 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, III, Vice Chair Mr. Aaron S. Y. Chung, Member(via videoconference from Hilo) Ms. Karen Eoff, Member Mr. Matt Kaneali`i-Kleinfelder, Member Ms. Ashley L. Kierkiewicz, Member Ms. Susan L. K. Lee Loy, Member Ms. Valerie T. Poindexter, Member(came in later) Absent & Excused: 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.) COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 9.12: MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED JUNE 30, 2019, FROM THE DEPARTMENT OF FINANCE From Finance Director Deanna Sako, dated July 31, 2019, transmitting the above report pursuant to Hawaii County Charter Section 6-6.3(h). FC-17 August 20,2019 Vote on Comm. 9.12: Mr. Richards moved to close file on Comm. 9.12. Filed Seconded by Ms. Eoff and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, and and Chair David—8. Noes: None. Absent: Committee Member Villegas — 1. Excused: None. Comm. 10.17: CORRECTED REPORT OF CHANGE ORDERS AUTHORIZED: MAY 1 — 15, 2019 From Finance Director Deanna Sako, dated July 23, 2019, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Vote on Comm. 10.17: Mr. Richards moved to close file on Comm. 10.17. Filed Seconded by Mr. Kaneali`i-Kleinfelder and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, and Chair David—8. Noes: None. Absent: Committee Member Villegas — 1. Excused: None. Comm. 10.18: CORRECTED REPORT OF CHANGE ORDERS AUTHORIZED: JUNE 1 — 15, 2019 From Finance Director Deanna Sako, dated July 23, 2019, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Vote on Comm. 10.18: Mr. Eoff moved to close file on Comm. 10.18. Seconded Filed by Mr. Richards and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, and Chair David—8. Noes: None. Absent: Committee Member Villegas — 1. Excused: None. Comm. 11.15: REPORT OF FUND TRANSFERS AUTHORIZED: JUNE 16—30, 2019 AND JULY 1 - 15, 2019 From Controller Kay Oshiro, dated July 25, 2019. Page 2 FC-17 August 20,2019 Vote on Comm. 11.5: Mr. Richards to close file on Comm. 11.15. Seconded Filed by Ms. Eoff and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, and Chair David–8. Noes: None. Absent: Committee Member Villegas – 1. Excused: None. Comm. 392: TABULAR SUMMARY OF BONDED INDEBTEDNESS AS OF JUNE 30, 2019 From Finance Director Deanna S. Sako, dated July 29, 2019, transmitting the above report pursuant to Hawaii Revised Statutes Chapter 47C. Motion to Close File: Mr. Richards moved to close file on Comm. 392. Seconded by Ms. Poindexter. CHR. DAVID: Any discussion? MR. RICHARDS: Yep. CHR. DAVID: Mr. Richards, go ahead. MR. RICHARDS: Director Sako,please. (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: I'm here, yes. MR. RICHARDS: Thanks so much for being here. Deanna, can you walk us through this report,please. MS. SAKO: So this report is required at the end of every fiscal year, and it's a report of our total debt outstanding. So the first page, after you get through all the approval memos, is actually our total principal amount of debt outstanding and unpaid. It's broken down by General Obligation Bonds, State Revolving Fund Loans, and other debt which is extremely small, which adds up to $477.5 million. Then we have exclusions, which are things that—this is all set up in HRS (Hawai`i Revised Statutes). We follow the requirements. The first part that we exclude is the amount that's going to be paid in coming year that we have Page 31 FC-17 August 20,2019 budgeted for both the GO (General Obligation) bonds, the State Revolving Fund Loans. And then we also subtract out what's going to be reimbursed to us by the Department of Water Supply, and the debt to be reimbursed to us by ID (Improvement District) 418 and 419. And so we come out a net funded debt of $395.2 million. And then the subsequent pages are details of each of those amounts. MR. RICHARDS: In this State Revolving Fund Loans, your Schedule B, does that include any of the funds that came to us because of the lava reparations or loans because of that? MS. SAKO: No, this is actually just the Federal program that we primarily use for sewer and solid waste. We are trying to find out if we have to include the $40 million from the State that they loaned us, but we have drawn anything down yet. So either way, it wouldn't be on the report right now. MR. RICHARDS: Okay. Would that $40 million be reflected somewhere on this page once we use it? MS. SAKO: Once we use it, yes it will be somewhere here. MR. RICHARDS: And would that be under the State Revolving? MS. SAKO: No. State Revolving is a very specific Federal program, so it wouldn't be there. We might make a new line item for State loans or something like that. MR. RICHARDS: Okay, thank you. So our current outstanding, as you said, it's $395 million? MS. SAKO: Yes, after you take out the exclusions. MR. RICHARDS: Okay. Thank you, Chair. I yield at this point. CHR. DAVID: Thank you, Mr. Richards. Anyone else? Chair Chung, could you just shout out if you need to say something? Because our tv set is going in and out. Alright, all those in favor of filing Communication 392 please say "aye." Page 4 FC-17 August 20,2019 Vote on Comm. 392: The motion to close file on Comm. 392 was carried by Filed the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, and Chair David—8. Noes: None. Absent: Committee Member Villegas — 1. Excused: None. ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 252-19: AUTHORIZES THE ACCEPTANCE OF A DONATION BY THE DEPARTMENT OF INFORMATION TECHNOLOGY TO BE USED TOWARDS TRAVEL AND OTHER EXPENSES TO ATTEND THE CHIEF INFORMATION OFFICER ROUNDTABLE AND SECURITY SUMMITS Accepts a monetary donation of approximately $7,000 from the Center for Technology. Reference: Comm. 406 Intr. by: Ms. David (B/R) Motion to Approve: Mr. Richards moved to recommend adoption of Res. 252-19. Seconded by Ms. Lee Loy. (Note: At this time, Information Technology Director Jules Ung came forward to address the members of the Committee.) CHR. DAVID: We have Director Jules Ung in Hilo. Hi, Director Ung. Can you just explain this donation that we're being blessed with? Thank you. MS. UNG: Thank you so much. The Center for Technology is a national association that brings together private sector and academic leaders to create public policy initiatives that effectively address the technology and innovation needs of the industry, while promoting a growth-oriented business environment for technology firms nationally. So the County of Hawaii has been invited to participate on panels and in discussions with State and municipal IT (Information Technology)leaders nationwide. Attendance and participation in this event by Hawaii State Government employees was formally vetted and approved by the Board of Ethics at the State level. Page 5 FC-17 August 20,2019 So this is an opportunity for us to expand our horizons and tap into a network of opensource experience, and knowledge of CIO (Chief Information Officer) leaders nationwide with a lot of experience in the industry and a lot of knowledge, who face similar if not greater challenges than the County of Hawaii. So thank you for your consideration. CHR. DAVID: Thank you; and thank you for that donation. Council Members, any questions for Director Ung on this? MS. KIERKIEWICZ: I have a quick question. CHR. DAVID: Sure, go ahead, Ms. Kierkiewicz. MS. KIERKIEWICZ: Hi, Jules. Good to see you. MS. UNG: Hi. MS. KIERKIEWICZ: So the conference is going to happen, let's see here, September and December. Are you going to be representing us at the conference? MS. UNG: Yes, I will. MS. KIERKIEWICZ: Okay, great. Anybody else from your department going with you? MS. UNG: No one else. Our State CIO will also participate as a panelist and facilitator. MS. KIERKIEWICZ: Excellent. Can we get just a quick report from you after each of the trips. I'm happy to work with you on a communication. You come before the Council and share. MS. UNG: Sure. MS. KIERKIEWICZ: These are really important issues that we're dealing with. Thank you for representing our County. MS. UNG: Thank you so much. CHR. DAVID: Thank you, Director Ung. Anyone else? No? Alright, all those in favor of approving Resolution 252-19 please say "aye." Page 6 FC-17 August 20,2019 Vote on Res. 252-19: The motion to recommend adoption of Res. 252-19 was (Approved) carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, and Chair David—8. Noes: None. Absent: Committee Member Villegas — 1. Excused: None. Res. 253-19: AUTHORIZES THE OFFICE OF THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE UNITED STATES GEOLOGICAL SURVEY Funds in the amount of $46,672 would be used to continue the cooperative flood-monitoring program, which consists of the planning and designing of flood management systems such as bridges, culverts, and levees. Reference: Comm. 407 Intr. by: Ms. David (B/R) Motion to Approve: Ms. Lee Loy moved to recommend adoption of Res. 253-19. Seconded by Mr. Kaneali`i-Kleinfelder. CHR. DAVID: Director Yamamoto is in our Hilo Chambers. This was asked to be waived. Director, could you please explain the funds and give us a little information about this ? MR. YAMAMOTO: Good afternoon. These funds are part of our program that we've been participating with the USGS (United States Geological Survey) Cooperative Program. And it's been using it to do a long-term monitoring of the County floodplains, which is used to create and facilitate better floodplain mapping. It's used by also NOAA (National Oceanic and Atmospheric Administration) to develop their weather statistics that they provide advisories to the County and State Civil Defense, responses to major storms. It's used to proof the 100-year peak discharge. And used by U.S. Army Corps of Engineers to develop the regression equations that are contained in the FEMA (Federal Emergency Management Agency) flood-insurance studies that provides the basis for the FEMA insurance rate maps. So we've been participating in this monitoring of our streams. Actually, they monitor 24 streams around the island, and they're tasking us with eight of the 24, and the rest are supported by other agencies. Page 7 FC-17 August 20,2019 MR. BROWN: Excuse me, Director Yamamoto, can you state your name for the record, please? MR. YAMAMOTO: I am David Yamamoto, Director of Public Works. MR. BROWN: Thank you. CHR. DAVID: Thank you, Mr. Clerk, in Hilo. MR. YAMAMOTO: And the reason for waiving Committee is that this agreement starts in October and from October 2019 to September 2020. So we are just trying to, you know, obtain the funds to be able to enter into this agreement with the USGS before the deadline of September 1st CHR. DAVID: Great. Thank you so much for that explanation and thank you for keeping up with our flood-monitoring on this island. Any ? Mr. Richards, go ahead. MR. RICHARDS: Thank you, Chair. Thank you, Mr. Yamamoto. $46,000 for 14 streams is not a lot of money to monitor for a year. Is this part of matching funds? MR. YAMAMOTO: Correct. I believe the total amount that is being given to USGS is $60,000, and this is for eight streams, and there's 24 around the island. The remaining 16 streams are supported by other agencies, the monitoring of those streams. MR. RICHARDS: Okay. And as you said, this is an ongoing contract or relationship, is that what I understand? MR. YAMAMOTO: Correct. We've been participating in this monitoring program since 2006. MR. RICHARDS: Okay, thank you. I yield. CHR. DAVID: Thank you, Mr. Richards. Anyone else? Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. Hi, Director Yamamoto. I'm sorry, it's been a long day. How many years did you say our County has been collaborating with you USGS on this monitoring program? MR. YAMAMOTO: Since 2006; 13 years. Page 8 FC-17 August 20,2019 MS. KIERKIEWICZ: Okay, 13 years. And so each year we monitor eight different streams? MR. YAMAMOTO: That's been the trend, as I understand. Last year there were eight streams, as well. MS. KIERKIEWICZ: So in the last 13 years, have you been taking the information that's being gleaned by these programs to make Public Works decisions and priorities? MR. YAMAMOTO: Well, I can't speak for our predecessors, but certainly we will look at these to understand what's going on around the island and where we should be focusing our attention on, regarding any bridges and roadways that might be affected by these streams. MS. KIERKIEWICZ: Right, because so many of that infrastructure island-wide is really antiquated and aging, and in need of maintenance and upgrade. Is it possible for you to transmit the most recent version of the monitoring report to this body? MR. YAMAMOTO: Yes, I will. MS. KIERKIEWICZ: Okay. And then maybe going forward a year from now once this monitoring program is complete, getting a copy of that and maybe doing some side-by-side analysis. Maybe even over the last 13 years, to see if things are projects have been prioritized based on this data. I mean, it's good that we're studying. But if we're going to keep spending money to study the same thing and get the same answers, I would rather use this money to make the improvements. Anyway, that's just how I feel. Chair, I yield. CHR. DAVID: Thank you, Ms. Kierkiewicz. MS. LEE LOY: Yeah, thank you. Thank you, Mr. Yamamoto, for being here. And I actually want to kind of springboard off of Ms. Kierkiewicz's comments. Which is, yes, if we keep studying, it's one thing. But I would that the hope data would drive areas in which could be identified as high-priority areas so that we can start making some improvements to our floodways rather than just mapping and studying it. That's just my only comment. With that, Chair, I yield. CHR. DAVID: Thank you very much, Ms. Lee Loy. Anyone else? Seeing none, well, thank you very much, Director Yamamoto, for coming forward and explaining that. Seeing no other comments, all those in favor approving Resolution 253-19 please say "aye." Page 9 FC-17 August 20,2019 Vote on Res. 253-19: The motion to recommend adoption of Res. 253-19 was (Approved) carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, and Chair David—8. Noes: None. Absent: Committee Member Villegas — 1. Excused: None. BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. (There were none.) CHR. DAVID: Please, a motion to adjourn this Finance? ADJOURN- There being no further business, at 4:30 p.m., Ms. Lee Loy 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, and Chair David—8. Noes: None. Absent: Committee Member Villegas — 1. Excused: None. CHR. DAVID: We are adjourned. Mahalo. Approved: Ms. Maile Medeiros David, Chair (Date) Finance Committee MD/na Page 10