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HomeMy WebLinkAboutMIN FC 2019/10/15 2018-2020Committee on Finance 21st Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii October 15, 2019 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 9:04 a.m., in the Council Chambers, Hilo, by Ms. Maile Medeiros David, Chair. R(1T T CAT r Present: Ms. Maile Medeiros David, Chair Mr. Aaron S. Y. Chung, Member 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 Mr. Herbert M. "Tim" Richards, III, Vice Chair STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: The Chair called Dwight J. Vicente, who registered to comment on Bill 106 (Comm. 522) and Bill 107 (Comm. 523) and came forward when called. COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 10.21: REPORT OF CHANGE ORDERS AUTHORIZED: AUGUST 1 —15, 2019 From Finance Director Deanna Sako, dated September 25, 2019, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. FC -21 Vote on Comm. 10.21 Filed October 15, 2019 Ms. Lee Loy moved to close file on Comm. 10.21. Seconded by Ms. Eoff and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Villegas, and Chair David — 7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Richards — 2. Excused: None. Comm. 10.22: REPORT OF CHANGE ORDERS AUTHORIZED: AUGUST 16 — 31, 2019 From Finance Director Deanna Sako, dated September 25, 2019, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Vote on Comm. 10.22: Ms. Lee Loy moved to close file on Comm. 10.22. Filed Seconded by Ms. Villegas and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Villegas, and Chair David — 7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Richards — 2. Excused: None. Comm. 10.23: REPORT OF CHANGE ORDERS AUTHORIZED: SEPTEMBER 1 —15, 2019 From Finance Director Deanna Sako, dated September 25, 2019, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Vote on Comm. 10.23: Ms. Lee Loy moved to close file on Comm. 10.23. Filed Seconded by Ms. Eoff and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Villegas, and Chair David — 7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Richards — 2. Excused: None. Page 2 FC -21 October 15, 2019 Comm. 513: YEAR-END REPORTS FROM NONPROFIT ORGANIZATIONS AWARDED COUNTY GRANTS FOR THE FISCAL YEAR ENDING JUNE 30, 2019, AND SUMMARY ANALYSIS From Council Member Maile David, dated September 19, 2019, transmitting the above report pursuant to Hawaii County Code Section 2-142(c). Motion to Close File: Ms. Eoff moved to close file on Comm. 513. Seconded by Ms. Lee Loy. CHR. DAVID: If members have no objections, I would like just to do a very brief recap. So Communication 513 basically states the requirements of our County Code, Chapter, Article and Section, that requires each nonprofit recipient to submit year-end reports. In summary, there were 182 applicants for the fiscal year 2018-2019, 176 of which were awarded grants, and out of these 176 awardees, one was not required to submit a year-end report due to cancellation. So 175 nonprofit awardees filed year-end reports this year. Briefly, each year-end report contains a brief narrative setting forth their specific measurables and outcomes of public benefits that were derived from the use of County funds, also a summary of income showing revenue sources and funds received, and a summary of grant expenditures. Specifically, if you look in your communication, Attachment A provides a comprehensive overview of applications received, the disqualified applicants, where no award was made, and then the explanation for each category. So generally at the end of fiscal year 2018-2019, the awardees received total grants of $1,494,033.09. Attachment A breaks down the total appropriated, $1.5 million, and the total unexpended funds, which was $5,966.91, so total disbursed for that fiscal year was $1,494,033.09. It also list the number of disqualified applicants and the agreements cancelled with the respective amounts for each. In Attachment A, it also has a listing of each nonprofit organization in alpha order and the amount that were awarded to each. So the last page of Attachment A is a colored graph that shows the breakdown and percentage disbursed per category for this fiscal year. The other attachments, B, C, and D, are just the examples of the grant application form guidelines to the recipients and the notice for the year-end recipient's report requirements. And Attachment E, I think everyone got those two huge spiralbound. They are the actual applications and everything that they filed for the year-end report. Basically, I'd really like to thank Mayor Kim and the Department of Finance, Director Sako, Deputy Hunt; and two key people in your department, Ted Schrey and Lisa Tada, who actually are so dedicated to this program, that without them, I Page 31 FC -21 October 15, 2019 don't know if we can even function and process all of these. So mahalo to them. I'm sorry they're not here today, this morning. Also, I'd like to thank the ad hoc committee. I think this past ad hoc committee, it was very promising, and I think everyone recognized the importance of what needs to be funded and the services that will benefit our community the most. So, thank you. Most importantly, I want to thank Dawn Manago, my LA (Legislative Assistant). She's awesome, coordinated all the entire process, works very closely with the Finance Department. Prepares the spreadsheets, emails instructions, reminds people when to file things. Most impressive. So thank you very much, Dawn, wherever you are. I think you're in Kona. So my last statement is basically to thank the nonprofit organizations because they pull out all the stops when it comes to providing services for our communities and they do a good job. So with that note, I yield to my colleagues. Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Ms. David. Yes, everything you have said, I ditto. Most importantly, for the nonprofit organizations, as we budget for measurables and outcomes they really are demonstrating what they do with very little money and really accelerate the use of the money. One thing that I find really helpful in this report, is at the end of Attachment A there is a bar chart which demonstrates the need of our community and how these nonprofits are meeting them. So as we move through our next budget cycle, coming up very shortly here, this will actually be a good measure on how we create better synergies with the monies that we're utilizing here at the County level while meeting the needs of, you know, educational concerns, needs of the poor, our youth, physical or emotional disabilities. I really look forward to next nonprofit, because thank you to the rest of my other colleagues, we have a little bit more money there this time around. So with that, I'll be yielding. But thank you, and thank you for all the hard work, for all of the departments and the nonprofits for filling a need in our community. I yield. CHR. DAVID: Mahalo, Ms. Lee Loy. Mr. Chung, go ahead. MR. CHUNG: And, you knowI mean, just following up on that. I really wanted to just thank you, Maile, for all of your hard work, you know, with the nonprofits. I know it takes a lot to coordinate all of this and then do follow-ups. So you're doing a marvelous job. I just wanted to say that publicly. CHR. DAVID: Thank you, Chair Chung. Anyone else? Ms. Kierkiewicz, go ahead. Page 4 FC -21 Vote on Comm. 513 Filed ORDER OF RESOLUTIONS October 15, 2019 MS. KIERKIEWICZ: I'm just going to echo the sentiments of Chair Chung and Ms. Lee Loy. Thank you and thank Finance and your team. I really appreciated having this color -coded bar chart. I wonder if in the future, because we obtain this information from the nonprofits where they talk about geographical area served, if we could also have a chart that says where the services are happening and by what category. That would be extremely helpful. CHR. DAVID: Thank you for that. Anyone else? Seeing none, then all those in favor of filing Communication 513 please say "aye." The motion to close file on Comm. 513 was carried by the following voice vote: Ayes: Committee Members Eoff, Kierkiewicz, Lee Loy, Poindexter, Villegas, and Chair David — 6. Noes: None. Absent: Committee Members Chung, Kaneali`i-Kleinfelder, and Richards — 3. Excused: None. The Chair directed the Committee to proceed to the next order of business, Order of Resolutions. Res. 349-19: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR LEASE OF A FORKLIFT FOR THE DEPARTMENT OF ENVIRONMENTAL MANAGEMENT Authorizes the Mayor to enter into a five-year lease agreement with an approximate monthly cost of $1,005. The County would own the equipment at the end of the lease. Vote on Res. 349-19 (Approved) Reference: Comm. 525 Intr. by: Ms. David (B/R) Ms. Villegas moved to recommend adoption of Res. 349-19. Seconded by Ms. Poindexter and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Villegas, and Chair David — 7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Richards — 2. Excused: None. Page 5 FC -21 October 15, 2019 Res. 350-19: AUTHORIZES THE OFFICE OF THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE UNIVERSITY OF HAWAII Provides $14,322 from the Department of Research and Development to the University of Hawaii to fund its International Workshop on Angiostrongylus and Angiostrongyliasis program. Funds would be used to conduct educational outreach to researchers, clinicians, and the general public on the organisms that cause Rat Lung Worm Disease. Reference: Comm. 526 Intr. by: Ms. David (B/R) Motion to Approve: Ms. Kierkiewicz moved to recommend adoption of Res. 350-19. Seconded by Ms. Eoff. CHR. DAVID: Discussion, Council Members? No? Glenn, please come forward. (Note: At this time, Agricultural Economic Development Specialist Glenn Sako came forward to address the members of the Committee.) CHR. DAVID: Thank you. Introduce yourself for the record. MR. SAKO: Good morning. CHR. DAVID: Good morning. MR. SAKO: I'm Glenn Sako, Economic Development Specialist, working with the agriculture. So this resolution is to enter into an agreement with UH -Hilo, headed by Dr. Sue Jarvis who heads the rat lungworm lab. This is the sixth international workshop that is being held. It's been held recently in China, Australia, the U. S., and Thailand, and basically bringing together the international research to present the results and to further the research into this debilitating disease that is often misdiagnosed. But the ramifications is such that, you know, it has resulted in some deaths, and often times, paralysis and long-term neurological effects. So this conference is going to be held on January 5fh to the 8fh at the Hilo Hawaiian Hotel. It is free, open to the public. It will—you know, they are expecting about 200 to 250 participants. Already I've heard of about 215 people having registered. The concern about the rat lungworm disease, its impacted on our produce sales locally. There has been some concern by the consumers about the leafy greens and the possibility that it may have the nematodes that cause rat lungworm disease, and also, on the tourism industry. So we are fortunate that this Page 6 FC -21 Vote on Res. 350-19 (Approved) October 15, 2019 international workshop will be held here in Hilo, and we look forward to a lot of information coming forward from it. CHR. DAVID: Thank you, Mr. Sako. Anyone else? No? Thank you so much for that information. MR. SAKO: Thank you. CHR. DAVID: Okay, all those in favor of approving Resolution 350-19 please say "aye." The motion to recommend adoption of Res. 350-19 was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Villegas, and Chair David — 6. Noes: None. Absent: Committee Members, Kaneali`i-Kleinfelder, Poindexter, and Richards — 3. Excused: None. Res. 352-19: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR LEASE FOR A MAILING -SYSTEM MACHINE FOR THE OFFICE OF THE COUNTY CLERK, SUPPORT SERVICES DIVISION Authorizes the Mayor to enter into a five-year lease agreement with an approximate monthly cost of $611. Reference: Comm. 528 Intr. by: Ms. David (B/R) Vote on Res. 352-19: Ms. Lee Loy moved to recommend adoption of Res. 352-19. (Approved) Seconded by Ms. Eoff and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Villegas, and Chair David — 6. Noes: None. Absent: Committee Members, Kaneali`i-Kleinfelder, Poindexter, and Richards — 3. Excused: None. Page 7 FC -21 October 15, 2019 BILLS FOR The Chair directed the Committee to proceed to the next order of business, ORDINANCES: Bills for Ordinances. Bill 106: AMENDS ORDINANCE NO. 19-74, AS AMENDED, RELATING TO PUBLIC IMPROVEMENTS AND FINANCING THEREOF FOR THE FISCAL YEAR JULY 1. 2019 TO JUNE 30. 2020 Reappropriates lapsed fuel tax funds from past fiscal years by establishing the following program appropriations to the Capital Budget: North Kona Engineering Project ($13,847.15); Roadway Projects (Engineering) ($5,253,455.15); Bridge Inspection, Repair and Replacement Program (Engineering) ($1,744,615.01); and Local Road Improvements (Highways) ($1,343,254.62), for a total of $8,385,171.93. Reference: Comm. 522 Intr. by: Ms. David (B/R) Motion to Approve: Ms. Villegas moved to recommend passage of Bill 106 on first reading. Seconded by Ms. Poindexter. CHR. DAVID: Before we move on, we have Director Yamamoto and Director Sako here. You want to come up, please? Before we do that, I think we're going to make that motion so we can discuss it with the communication. Motion to Amend: Ms. Eoff moved to amend Bill 106 with the contents of Comm. 522.1. Seconded by Ms. Poindexter. CHR. DAVID: We're now going to be discussing the amendment. Ms. Sako. MS. SAKO: Thank you for moving to amend. We submitted the original communication prior to actually closing the books, which is finally done. So, we did have to adjust by the $10,251.17; but in the process of preparing the amendment, we realized that we also had a typo, since there was a typo in the B-52. Both things are fixed, so these are the correct amounts now. We're trying something a little different. Instead of appropriating each fuel tax ordinance, like in 98-00, the $85.02 separately, we're going to combine them all into one pot of money so that Public Works knows exactly what they have and in which categories, which is the exhibit, I believe, that has it broken down. There are three main categories that all of our fuel tax ordinance follow. The Roadway Projects, which are engineering, and those are the monies that we use for matches, especially on STIP (Statewide Transportation Improvement Project) projects. So it does take us a little while to accumulate enough to have enough for a STIP project. The second main category is Bridge Inspections, and the last one is the Local Road Improvements, which is the district paving that most of you are Page 8 FC -21 October 15, 2019 aware of. This one also has a little bit for North Kona Engineering Project, and that's from a much older fuel tax ordinance that we're carrying through. CHR. DAVID: Ms. Sako, we're on the amendment right now, so why don't we before I take questions from Council Members, why don't we vote on the amendment and then we can discuss the bill, as amended. Okay, all those in favor of amending Bill 106 with the contents of Communication 522.1 please say "aye." Vote on Motion The motion to amend Bill 106 with the contents of to Amend: Comm. 522.1 was carried by the following voice vote: (Approved) Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Villegas, and Chair David — 7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Richards — 2. Excused: None. CHR. DAVID: And now we're back to the main motion, Bill 106, as amended. You can go ahead with your explanation now or questions from Council Members. Okay any questions, Council Members? No? MS. KIERKIEWICA: Chair? CHR. DAVID: Ms. Kierkiewicz, go ahead. MS. KIERKIEWICZ: Thank you, Chair. Deanna, correct me if I'm wrong, but this is not the first time we've had a lapse in fuel tax monies. MS. SAKO: No, we appropriate for a couple of years and then we have to go back and reappropriate as it lapses. Some of the older ones, it may have been tied up in a contract, and when they completed the contract, sometimes we have negative change orders and there's money that lapses. Sometimes we have trouble tracking down the final vendor for payment. But these are monies that are left over from other projects that now can be utilized for future projects. MS. KIERKIEWICZ: Okay. So we've had money like from 20 years ago. It wasn't spent becauseI mean, why wasn't all this money spent, beyond what Director Sako had? I mean, there's no shortage of projects. MR. YAMAMOTO: Yeah, the only reason would be that the funds were maybe included in a contract that couldn't be closed. Until it closes, then that money goes back into the account that it came from. Page 9 FC -21 October 15, 2019 MS. KIERKIEWICZ: Okay. Director Sako, you mentioned that we're doing something a little different. Can you explain how it was done previously? You said we're going to lapse everything into one account. MS. SAKO: Well, so basically on the ordinance itself, on the bill, each of these account numbers, 2271.26, we would have had 11 different ordinances, 10 or 11 different ordinances listed to each amount. So, we would have had one ordinance for the $13,762.13, another ordinance for the $85.02. MS. KIERKIEWICZ: Got it. MS. SAKO: And it gets kind of humbug with the accounting, and it's actually harder for Public Works to realize how much money they do have to spend. MS. KIERKIEWICZ: You have a lot to spend now, Director. You know, earlier this year you came before us, I think it was meetings in June and there was a fuel tax report. I don't know if we ever got like a follow-up from you on that, where you list out different road surfacing projects, school safety projects, allotments per district. And I got curious, so I went into Laserfiche and I looked at these fuel tax reports from previous years. I noticed that, for instance, 2018 in June, Post Office Road was on the road resurfacing list, and then in the report that you gave us this year, it wasn't on list. MR. YAMAMOTO: It's still on the list to be done, and they're trying to schedule it in. MS. KIERKIEWICZ: But if it's not on this report list, which list is it on? MR. YAMAMOTO: I have to check. But we have it on our radar to get it scheduled in to get done. MS. KIERKIEWICZ: I remember you mentioned to us that you were doing work with, I think, a contractor to get a sense of the conditions of the various roads. MR. YAMAMOTO: Yeah, that— MS. KIERKIEWICZ: Has that been completed? MR. YAMAMOTO: Not yet. They intend to present it or for our use some time in March. MS. KIERKIEWICZ: Of next year? MR. YAMAMOTO: Yeah, they're still collecting the data from the roadways. They haven't finished collecting all the roadways that would be included in this software package. Page 10 FC -21 October 15, 2019 MS. KIERKIEWICZ: And so then once you get the data, it's going to be uploaded into like a GIS (Geographical Information System) layer or something? How is it available for viewing by Public Works as well as the public or Council Members? MR. YAMAMOTO: There's a log in to their software, and then they're going to give us some training on how to use the software for the purposes we decided prior. MS. KIERKIEWICZ: Okay. I guess I just want to understand your system for prioritizing, and then also like understanding when projects are slated to be done, and then to track the status of the project. Can you provide me some insight into what that system looks like? MR. YAMAMOTO: Well, currently it's pretty much to a degree subjective, you know, per district baseyard. They would be out in the field looking at—you know, observing the various roads as well as getting maybe complaints from the constituents. And so they would review that and try to schedule any roads that they feel are needing resurfacing. MS. KIERKIEWICZ: So folks have been complaining about Post Office Road, for instance, for a number of years. MR. YAMAMOTO: Yes. And so—yeah, I'm not sure why it keeps getting rescheduled because I believe it was scheduled a while back to get done. I'll have to check why we keep rescheduling it and pushing it down the road. For instance—that we have left to the Highway Division, primarily to try and schedule in the various roads based on their manpower and equipment availability and MS. KIERKIEWICZ: But it's not just our guys doing the work, right? We can contract out if we need to. MR. YAMAMOTO: Yeah, we can contract out if we need to, but then you know, end up taking work out of Engineering Division to prepare the plans and specifications to have it done by a contractor. MS. KIERKIEWICZ: But then the work would get done. MR. YAMAMOTO: Yeah, the work would get done. MS. KIERKIEWICZ: And then money wouldn't be lapsing, right? MR. YAMAMOTO: Yeah. Page 11 FC -21 October 15, 2019 MS. KIERKIEWICZ: Okay. MR. YAMAMOTO: So the way we currently kind of divided up the workload is, Engineering Division would focus in on the STIP roads, you know, for their resurfacing projects, while Highway Division would focus on the local road that are non -STIP. But we can extend it to where we're looking at, maybe price term agreements, where we can use our in-house work for us to direct the work of the contractor to resurface even local roads. So we are working on getting price term agreements for AC (asphalt/concrete) surfacing. MS. KIERKIEWICZ: Okay. Deanna, what happens if we don't approve this? MS. SAKO: They won't be able to spend any of the money. MS. KIERKIEWICZ: We don't want that. In between another hard spot. You know, when I saw this when I was reading the paper, what came to mind was lol, laughing in my mind, because a few years ago we increased fuel taxes, and now we have all this money that we're not spending. I guess, Director, you have a lot on your plate on top of Puna Recovery. But I'm just wondering if it would be possible to get more details around project priorities and timelines for how would be expending this money. MR. YAMAMOTO: Yes. MS. KIERKIEWICZ: That would sit well, I think, with me and the rest of my colleagues if we have a better sense of what the plan is. MR. YAMAMOTO: Yeah. So at this point, we have asked Highway Division to provide us a schedule to include this lapsed funds into their budget, that they have to do resurfacing projects. I'm, you know, waiting for that schedule and tentative cost and timeline that they expect to get it completed by. I guess once we get that software up and running, I think going forward, we can prepare the priorities that the Highway Division would work on to get these local roads resurfaced. MS. KIERKIEWICZ: Maybe you can ask Neil (Azevedo) to get in touch with all of the district Council Members so that we can work directly with him to prioritize how to spend the monies. MR. YAMAMOTO: Maybe we can meet and, you know, and get each of your guys district priorities. MS. KIERKIEWICZ: Yeah, I think that would be helpful. Better to do on the background instead of on the floor Page 12 FC -21 October 15, 2019 MR. YAMAMOTO: And then we'll relay it to Highway Division at that point. MS. KIERKIEWICZ: Okay. Alright, thank you. I yield. CHR. DAVID: Thank you, Ms. Kierkiewicz. Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you, Chair. Deanna, you mentioned that the contracts weren't closed for the payments, you know, not being able to give final payment. I'm curious to know what safeguards have been put in place, recognizing that some of this money—and I'm looking at six and eightI mean, we were leaving $1 million in some of these contracts. MS. SAKO: Some of those may not have been from contracts. The small amounts from the older years are actually leftovers from contracts. The bigger amounts, maybe I said it too quickly, is actually Public Works accumulating funds to have enough for the match on a STIP project. So $5 million, which is in the Engineering portion, is only enough match for a $25 million project. And $25 million nowadays goes by really fast in a road project; when you're reconstructing, I don't know why I'm saying it, David could say it better, but you have to dig out, and re-lay, and redo the foundation. That adds up really quickly. So they've actually been accumulating those bigger amounts so we would have enough for a STIP project. They actually have some projects lined up, especially the design portion that they need to get done, which is why we're here with this reappropriation. MS. LEE LOY: And that's what I kind of want to better understand. I understand the need to be banking some money so that when the STIP match comes, we have our match. I think what my fellow colleague is saying, is there are also some other projects that get listed and then they fall by the wayside after being promised they would be done. MS. SAKO: Yep. MS. LEE LOY: So to you, Mr. Yamamoto, I want to better understand how these projects are prioritized, especially if some have been left on the table. And I understand the LIDAR (Light Detection and Ranging) mapping and some of the other things that we're doing to understand the road conditions, but I want to make sure the promises that we made back in 2006, to pave Post Office Road, will be met and prioritized on top of future roads that we want to look at. How do we communicate that to our constituency, that we heard you, you guys have been grumbling, and we're trying to meet the needs? MR. YAMAMOTO: In as far as the STIP roads, a lot of it has to do with our communication with the Federal Highway process. It goes through a long process of having to go through the category exclusion of the project. And so now, we Page 13 FC -21 October 15, 2019 currently have like a four-year list of projects that we've been trying to get on the STIP list. And then it comes down to—boils down to how much money the Federal Highway will grant us in a given year. It has come down, from what I understand. We used to get like $12 million, then it came to $6 million, and like last year we only got $4 million. So a lot of times the amount of money that they do afford us in a given year isn't enough to accomplish the project, and so the project gets STIP'd to a later year where can get more money, and then we would select a project that we can afford that Federal Highway is offering for the monies that they're offering, to help us with. MS. SAKO: But regarding the local road paving, that's the $1.3 million that's being allotted—appropriated, and of that, Puna does have the highest amount, $454,000. The bulk of that came from the most recent biennium period. Normally, it would have been spent in this last fiscal year, in fiscal year 2019, but the same Puna roads district is who is helping with lava and all of that. So several times their projects get pushed back, sometimes we have to move the paver from district to district. So, I'm sure it's getting close to time to have the paver back in Puna. MS. LEE LOY: Thank you. Thank you for that. Just looking at fuel tax, and Deanna you were with me, we're looking at more energy efficient cars, right? So paying at the pump, and a planning horizon at year five or year six, we're not going to realize the same amount of fuel tax that we're seeing right now, as we move in these energy efficient cars. So I'm trying to get my arms around how we prioritize roads, making sure they are critical links not only for our constituents but our Mass Transit system, identifying those critical paths, ensuring that those are robust roadway systems, while looking at a planning horizon of fuel tax going down because we're going to have more energy efficient cars on the road. So if we could give that some thought, too. Deanna, go ahead. MS. SAKO: No, I was just going to say, yeah, the high HIRUC (Hawai`i Road Usage Charge) and the road usage charge concept is new, but I think the State plans to roll it out in the next few years. And they have asked us to kind of piggy- back so that we could hopefully maintain the same level of revenue, just collecting it in a different way. One of the other challenges we have is, you know, connecting to State highways, and not having control over those. So, you know, some of our areas, the main thoroughfare is actually a state road to get us there. But I think we all appreciate, you know, what you're saying. And I'm sure Public Works will take a look at, you know, what are the County's primary roadways that we want to have that robust system with. MS. LEE LOY: Yeah, thank you, Deanna, because I really started to look at what our planning fuel tax horizons will look like in year four, year five, year six, from now. And, David, do you know right off the top of your head, if we move in the Page 14 FC -21 October 15, 2019 road usage charge, how to match? Is that the same type of match we're going to get from STIP projects? Deanna, do you know? MS. SAKO: The STIP and how the Federal government does it, I don't know that the Feds are changing the way they're collecting fuel tax yet. But that money, on the STIP projects, comes from Federal Highways. So right now that's their Federal fuel tax portion that they're collecting, and I don't know if they're moving to road usage charge yet. MS. LEE LOY: Mr. Yamamoto was talking about how we had $16 (million), and $10, and now we're down to $6, and if we're not collecting at the pump, nor is the Federal government. MS. SAKO: Yeah. MS. LEE LOY: And so some of that STIP money that we're trying to match, and we're banking, won't be there either. MS. SAKO: Right, and it's very possible that we're just going to have to do the whole project ourselves. Because, you know, one of the earlier budgets in the current Federal administration had it that the Feds would pay the 20 percent and the local jurisdiction would pay 80 percent. So that was their way of dealing with that, I believe. MS. LEE LOY: We've got plenty work ahead, David. So if we could learn how to prioritize our projects; look and meet with our individual Council Members. They know their roads, they know their communities well, and what really does service them. Chair, I yield. CHR. DAVID: Thank you, Ms. Lee Loy. Anyone else? Seeing none, I think— have one question. I think you touched on it, Deanna. That this $8.3 million, it breaks down, if you have a STIP project, and our 20 percent basically takes almost all of it. MS. SAKO: Yeah. CHR. DAVID: It seems like a lot of money, but it just depends how big the project—and our 20 percent, it can just go down to hardly anything. MS. SAKO: And I think they're trying to be prepared becauseunfortunately, yeah, when it's our turn, it's our turn, and we need to have our match. CHR. DAVID: Right. MS. SAKO: But our turn has been coming around a little more slowly. Page 15 FC -21 October 15, 2019 CHR. DAVID: I see, okay. Well, thanks for that explanation. Oh, go ahead. Alright. I'm sorry, Ms. Eoff. MS. EOFF: I'm sorry. BeforeI remember you have told us that the Governor is noting that STIP money can only be used for road repairs and maintenance at this point and no new capacity roads. Is that still the theme? MR. YAMAMOTO: Correct. As far we know, they haven't changed that. So all of our roads is just resurfacing and not trying to add any capacity. MS. EOFF: No new roads capacity. MR. YAMAMOTO: So if want to add capacity, the County would be responsible for adding the capacity prior to resurfacing the road. MS. EOFF: Is that mandate coming down from the Feds or is that just our State's policy? MR. YAMAMOTO: I'm not sure exactly where it's coming from. But I know it seemed to have changed when certain administration in the State government changed. MS. SAKO: At one point, I thought I heard they were just trying to find a way to stretch our dollars farther. But, you know, new road projects, I think, are much more costly. But yeah, it's been too long now to remember the exact reason. MS. EOFF: So that might be something to speak to the Governor about? MS. SAKO: Yeah, I think it's actually the Department of Transportation (DOT). I think Public Works has been pretty vocal in how they feel about that. MR. YAMAMOTO: We've expressed to DOT that there are a lot of roads that need capacity to include the multi -motor bike lanes and sidewalks. MS. EOFF: And for Mass Transit. MR. YAMAMOTO: Yeah, and for Mass Transit, the pullouts and stuff like that. They haven't given us the greenlight to be able to include that in the STIP proj ects. MS. EOFF: Okay, thank you. CHR. DAVID: Thank you, Ms. Eof£ Ms. Lee Loy. MS. LEE LOY: Thank you, Chair. You know, I'm hearing a lot of conversation about where we want to put them and developing that list. If we were to hold this Page 16 FC -21 October 15, 2019 in committee while you go ahead and develop that and get some of the feedback from Mr. Azevedo, what does that do to our timeline, Deanna? MS. SAKO: I would humbly request you move it to first reading at Council, because some of the bridge money is actually the money that's needed to move some of those projects forward. Definitely, some of our bridges are in critical shape and we need to get those projects moving. MR. YAMAMOTO: I would add some of the roadway resurfacing projects, too, that fall under the STIP, we need to go forward with getting the design completed. So that's where we need some money to be able to hire consultant to complete those projects, as well. So we are ready to receive the STIP when it comes available. MS. LEE LOY: So if we honor that and move it forward, Mr. Yamamoto, can you develop that list by first reading at Council so we can have that conversation amongst the rest of our colleagues? MR. YAMAMOTO: Yeah, I can provide you the STIP list that we currently have. We have the Cat -Ex (Categorial Exclusion) completed, and it's on the STIP list. MS. LEE LOY: Alright. So yeah, okay, I yield. CHR. DAVID: Thank you, Ms. Lee Loy. Okay, anyone else? No? Alright, thank you, Director Yamamoto and Director Sako, for being here this morning and the explanation, providing us this information. So Council Members, all those in favor of approving Bill 106, as amended with the contents of Communication 522. 1, please say "aye." Vote on Bill 106: The motion to recommend passage of Bill 106, as amended Draft 2 to Draft 2, on first reading was carried by the following (Approved) voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Villegas, and Chair David — 7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Richards — 2. Excused: one. Page 17 FC -21 October 15, 2019 Bill 107: AMENDS ORDINANCE NO. 19-74, AS AMENDED, RELATING TO PUBLIC IMPROVEMENTS AND FINANCING THEREOF FOR THE FISCAL YEAR JULY 1, 2019 TO JUNE 30, 2020 Adds the Public Works Kino`ole Street Shoulder Improvements project for $6.7 million to the Capital Budget. Funds for this project shall be provided from General Obligation Bonds, Capital Projects Fund — Fund Balance and/or Other Sources. Reference: Comm. 523 Intr. by: Ms. David (B/R) Vote on Bill 107: Ms. Lee Loy moved to recommend passage of Bill 107 on (Approved) first reading. Seconded by Ms. Villegas and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Villegas, and Chair David — 7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Richards — 2. Excused: None. Bill 108: AMENDS ORDINANCE NO. 19-74, AS AMENDED, RELATING TO PUBLIC IMPROVEMENTS AND FINANCING THEREOF FOR THE FISCAL YEAR JULY 1, 2019 TO JUNE 30, 2020 Adds the Public Works Kawili Street Shoulder Improvements project for $4.45 million to the Capital Budget. Funds for this project shall be provided from General Obligation Bonds, Capital Projects Fund — Fund Balance and/or Other Sources. Reference: Comm. 524 Intr. by: Ms. David (B/R) Vote on Bill 108: Ms. Lee Loy moved to recommend passage of Bill 108 on (Approved) first reading. Seconded by Ms. Eoff and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kierkiewicz, Lee Loy, Poindexter, Villegas, and Chair David — 7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Richards — 2. Excused: None. Page 18 FC -21 October 15, 2019 ADJOURN- There being no further business, at 9:49 a.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, Kierkiewicz, Lee. Loy, Poindexter, Villegas, and Chair David — 7. Noes: None. Absent: Committee Members Kaneali`i-Kleinfelder and Richards — 2. Excused: None. CHR. DAVID: We are adjourned. Thank you everybody. Approved: C Ms. Maile MeJJi-ro`s-D-dv-1-cT,Chair Finance Committee MD/na (Date) Page 19