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HomeMy WebLinkAboutREP FC 088 2019/12/03 2018-2020 REPORT OFT E COMMITTEE ON FINANCE DATE: December 3, 2019 Re: Comm. No. 605/Res. No. 403-19 PLACE: Council Chambers Hilo, Hawaii I TIME: 5:30 p.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Resolution No. 403-19, reports as follows: Resolution No. 403-19, transmitted by Finance Director Deanna Sako, via Communication No. 605 dated October 31, 2019 authorizes the Office of the Mayor to enter into an agreement with the State of Hawaii,pursuant to Hawaii Revised Statutes 46-7, for a grant to the Police Department. Accepts funds of$10 million from the State of Hawaii to reimburse the County for overtime costs, supplies, equipment, and other expenses incurred by the department in response to the protest activities related to the construction of the Thirty Meter Telescope on the summit of Mauna Kea. Postponed on November 19, 2019,to December 3, 2019. Council Member Matt Kaneali`i-Kleinfelder expressed his understanding that the idea for the Council to accept funds by way of a grant from the State is to cover costs incurred by the Hawaii County Police Department on Mauna Kea. Mr. Kaneali`i-Kleinfelder asked if Hawaii Revised Statutes (HRS) section 46-8 applies in this instance. Corporation Council Joseph Kamelamela responded HRS Section 46-8 does not apply in this case and that HRS Section 46-7 is more applicable in this case. Mr. Kamelainela noted that although HRS Section 46-7 was enacted before statehood, it specifically calls for the consent of the Council. Mr. Kamelamela explained that funding for the Fire Department is paid directly through the State and therefore the Fire Department does not go through this process. Finance Director Deanna Sako explained that EMT's (Emergency Medical Technician)presence was requested to be on Mauna Kea in case of any medical emergency. Mr. Kaneali`i-Kleinfelder again questioned why the Fire Department did not have to go through this process. Director Sako explained that the Fire Department is already under contract with the State, therefore their operations were conducted under that agreement. Ms. Sako clarified that in the budget ordinance, all of the grants contain provisions, referring to the language where the Mayor can enter into an agreement with the State and Federal agencies for grants that are included in the budget. Mr. Kaneali`i-Kleinfelder asked that if the County accepts these funds, what liabilities would be placed on the County and the Council since the Council has not seen the agreement? Mr. Kamelamela stated the agreement has already been signed and also explained there was a prior resolution dealing with a lease agreement that came before the Council, and now the current resolution is to validate that agreement. Mr. Kaneali`i-Kleinfelder expressed his confusion on how the $10 million is being spent in response to the protest activities when there are so many other things that need addressing on this island, such as roads and other County and State projects. FC Report No. 88 FC-88 Page 2 December 3,2019 Other Council Members were in agreement with Mr. Kaneali'i-Kleinfelder's questioning on this resolution, and also felt that providing this body with a copy of the agreement prior to this resolution coming before the Council would have been proper. It was noted that these monies came out of the people's pocket and the people want it back. Council Member Herbert M. "Tim"Richards, III stated his support of the resolution but disagrees with some comments made because the police responded to many serious situations on the mountain and so it is not without issues. He also stated that the Council is not authorizing anything but accepting the funds. He noted that funds are always being accepted without seeing the agreements, for example, accepting donations. Council Member Susan Lee Loy agreed that it is the people's money which, unfortunately, is being expended without the Council's oversight. Ms. Lee Loy asked, "What happens if the Council does not take the money?" Ms. Sako,responded that if the money is not accepted, then they would have to find another means to cover the costs. She suggested that the resolution be forwarded to Council at which time Mr. Kamelamela would be able to provide the Council with a copy of the agreement, as requested. Finance Chair Maile David stated she understood that the County has billed the State approximately $4.3 million and received payment of approximately$3.7 million thus far, from the State. Ms. David noted she assumed that the agreement would contain provisions as to the breakdown of the $10 million. Ms. Sako stated the agreement does not contain any reference to the $10 million amount and explained that the $10 million was a number randomly chosen to create the account to appropriate funds. Ms. Sako again noted the agreement does contain a specific dollar amount but is the agreement between the State and the County regarding reimbursement for costs and expenses incurred by the County. Ms. David inquired, as to the $10 million grant, how would the funds billed to the State, and which the County already received payment for,be accounted for? Ms. Sako explained that it is currently in a holding account until such time as Bill 115 is approved, at which time those expenditures will be accounted for in the related expenditure account, Your Committee on Finance is in accord with the purpose and intent of Resolution No. 403-19, and recommends its adoption. dmm AYES NOES ABS EX Respectfully submitted, CHUNG X DAVID X COMMITTEE ON FINANCE EOFF X I--------- KA,NEALI'l-KLEINFELDER X KIERKIEWICZ X LEE LOY X POINDEXTER X MAIZE MED S DAVID, CHAIR RICHARDS X FC REPORT NO.: 88 VILLEGAS X ADOPTED: