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HomeMy WebLinkAboutMIN FC 2020/06/03 2018-2020Committee on Finance 33`'d Session Hawaii County Building 25 Aupuni Street Hilo, Hawaii June 3, 2020 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: 1:05 p.m., in the Council Chambers, Hilo, by Ms. Maile Medeiros David, Chair. ROLL CALL: Present: Ms. Maile Medeiros David, Chair (via videoconference from Kona) Mr. Herbert M. "Tim" Richards, Vice Chair Mr. Aaron S. Y. Chung, Member Ms. Karen Eoff, Member (via videoconference from Kona) 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) Ms. Rebecca Villegas, Member (via videoconference from Kona) 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.) CHR. DAVID: Thank you. Public testimony is closed at this time, and Mr. Clerk, can we move on to Communications, please? Communication 10.37. COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 10.37: REPORT OF CHANGE ORDERS AUTHORIZED: APRIL 1 — 15, 2020 From Finance Director Deanna Sako, dated April 17, 2020, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Motion to Close File: Ms. Eoff moved to close file on Comm. 10.37. Seconded by Mr. Richards. CHR. DAVID: Any discussion, Council Members? Seeing none, all those in favor, please say "aye." FC -33 June 3, 2020 Vote on Comm. 10.37: The motion to close file on Comm. 10.37 was carried by (Filed): the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Richards, Villegas, and Chair David — 8. Noes: None. Absent: Committee Member Poindexter —1. Excused: None. MR. BROWN: Excuse me, Madam Chair, we have two Police Officers in the chamber here, I'm going to find out what agenda items they're here for. CHR. DAVID: Right, I believe both of them are here for Resolutions 645-20 and 646-20. If they'd like we can take those up right now. MR. BROWN: Yes, please. CHR. DAVID: Okay, great, start with Res. 645-20. Change Order As directed by the Chair and with no objection from the Council Members, of Business: the following items were taken out of order: ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. Res. 645-20: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR LEASE OF REAL PROPERTY FOR THE COUNTY OF HAWAII POLICE DEPARTMENT Authorizes the Mayor to enter into a five-year lease agreement with Milo Storage LLC, at an estimated monthly cost of $11,120 for 13,900 square feet of warehouse space to be used by the Police Department. Reference: Comm. 946 Intr. by: Ms. David (B/R) Motion to Approve: Mr. Richards moved to recommend adoption of Res. 645-20. Seconded by Ms. Eoff. CHR. DAVID: Lieutenant would you just be able to give us a description of where the lease property that this resolutions covers, thank you. Page 2 FC -33 June 3, 2020 (Note: At this time, Police Lieutenant Scott Amaral and Sergeant Nelson Acob came forward to address the members of the Committee.) LT. AMARAL: Hi, good afternoon. The property that we're looking at is currently in the Kea`au area due to the sensitive nature of what we store in these evidence warehouses. We really prefer not to give that information out during public testimony or anytime like that. Basically what we're looking at is, we've had these throughout the course of more than a few years. We have two properties in Shipman, and we have one of them that is actually about 100 foot by 60 foot with a 200 foot and 100 foot fenced in area. Now, we've had multiple break-ins into this secure facility. Why we're asking for this other property in Kea`au is because our feeling is that if we go ahead and place items in a totally secured environment where it is actually enclosed in all sides and there is no fencing, there would be less opportunity for prying eyes to see these items that we have in there. And therefore, less possibility of them wanting to actually break in. Now, the property that we're talking about initially which you call Warehouse II, which is in the Shipman area, that one primarily houses vehicles from negligent homicides; vehicles involved in that. Vehicles involved as well as in murders. And we only are able to fit about 30 vehicles inside the warehouse. The other portion on the outside that is still considered secured, we could fit maybe 60 more vehicles. Now, unfortunately with the Police Department, we continue to bring in more evidence than we are able to let go or destroy. Due to cases that get adjudicated; cases that, you know, are maybe close to statutes, go to trial. And then they end up getting some type of appeal down the road. So at times, we were holding on to these vehicles upwards of decades. And so with this property in Kea`au that we're looking at, it would help us to put everything under one roof, at least for the vehicles at this current property. CHR. DAVID: Thank you very much. I'll open it up to Council Members. Any questions on the Hilo side? We have no questions here. MR. BROWN: Excuse me, Madam Chair, Council Member Lee Loy would like to have the floor, please? CHR. DAVID: Oh, okay, I didn't see a hand. Go ahead, Ms. Lee Loy. Page 3 FC -33 June 3, 2020 MS. LEE LOY: Thank you, Chair. I was just curious because you mentioned the current location you have is 100 feet by 160 square feet which is 16,000 square feet. But this one identifies the lease at 13,900, so I'm trying to understand how we're making up the balance. LT. AMARAL: Okay, so I'm sorry, the warehouse that we're currently looking at, at some point we're going to give up that warehouse, right. It's actually 100 feet by 60 feet. That's the actual size, and the ceiling height is about 24 feet. There's a fenced in area that goes completely around this that entails about 200 feet by 100 feet. But of course, you have the warehouse right smack dab in the middle of that. MS. LEE LOY: So the fenced -in area, the square footage, we're going to actually be able to cover all of the needs that we have currently and then for future use? LT. AMARAL: We hope for the future as well. Now we plan to—we're looking at different things to help alleviate the amount of vehicles we have. Part of that is, we're looking at storage racks where maybe we can go up with multiple vehicles, these tiered racks, that's something that we'd be looking at in the future. Also, what we're looking at is, speaking more with the Prosecutor's Office, to see if we can release some of these vehicles. Because, you know, the Police Department takes in about 1,000 pieces of evidence, multiple different types of evidence a month. And it's a struggle to get rid of even that same amount that we bring in. And in this case, you know, if we can have further conversations with the Prosecutor's Office about removing these items out of there, it would definitely clear up more space for us. As I said, some of these vehicles are ten plus years old that are stored there. MS. LEE LOY: Okay. Thank you, Chair, I yield. CHR. DAVID: Thank you, Ms. Lee Loy. And for those of you in Hilo, we have Hamana Ventura of the Finance Department Property Management Division here, should you have any questions relating to the property itself if the Officers are not able to answer. So, thank you, Hamana, for being in the Kona Office. Anyone else having questions over there. MR. KANEALI`I-KLEINFELDER: Chair, I have a question. CHR. DAVID: Thank you. Go ahead, Mr. Kaneali`i-Kleinfelder. MR. KANEALI`I-KLEINFELDER: Thank you. Thank you for being here. So it sounds like we have security issues at our existing facility. That's in the same area? Page 4 FC -33 June 3, 2020 LT. AMARAL: No it's not. And in actuality, we have a warehouse that's less than a quarter of a mile away from this one that we're having security issues that is fenced in that has never gotten broken into. And that is a totally enclosed warehouse from top to bottom. So on this current warehouse that has been broken into, at least not the warehouse, but the exterior portion has been broken into. We at this point have cameras, a security system going. Those items in the past have been actually moved by perpetrators breaking into the fenced area. Power has been shut down in the warehouse so it would not record. And they basically get into the fence line. And a lot of these issues that we've had and the items taken, we've had a vehicle stolen out of there; we've had multiple car parts taken throughout the years. And we're talking just looking real quick from back about 2015 we've been having some of these issues. So the goal is that when we do or if we do get the approval to go into this other location, is that we will be looking at a security system as well. Thankfully it is in the Kea`au area. And so because of that, of course, we would request our officers to run by and make checks in the area when they're there. So that's kind of how we're going to try to deal with the security issues. MR. KANEALI`I-KLEINFELDER: Okay, and I think the central location between Hilo and Kea`au should help the security issues. And I'm glad to see that you're incorporating more security issues, cameras and such into the new facility. LT. AMARAL: Yes, we're planning on doing that. We haven't gotten that, of course yet, but with going through with this approval for this warehouse to begin with, we haven't started paying for that. But that's definitely something we're looking at. MR. KANEALI`I-KLEINFELDER: And that is kind of an ongoing issue that we have in Puna, I think you're aware of that. LT. AMARAL: Yes, sir. MR. KANEALI`I-KLEINFELDER: I'm glad to see that you're dealing with it as well, because it brings a little bit more strength to wanting to increase security in our district. So, mahalo, thank you. LT. AMARAL: Thank you, sir. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder. Anyone else in Hilo? Alright, seeing none, thank you Lieutenant, and ready for the vote. All those in favor of approving Resolution 645-20 please say "aye." Page 55 FC -33 June 3, 2020 Vote on Res. 645-20: The motion to recommend adoption of Res. 645-20 (Approved) was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Mr. Clerk, Resolution 646-20, please. Res. 646-20: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR LEASE OF REAL PROPERTY FOR THE COUNTY OF HAWAII POLICE DEPARTMENT AND THE COUNTY OF HAWAII FIRE DEPARTMENT IN KEA`AU, DISTRICT OF PUNA Authorizes the Mayor to enter into an amended agreement for a three-year lease at an annual estimated cost of $240 for the Kea`au Police Station and $100 for the Kea`au Fire Station, effective July 15, 2020 through July 31, 2023. Reference: Comm. 947 Intr. by: Ms. David (B/R) Motion to Approve: Mr. Richards moved to recommend adoption of Res. 646-20. Seconded by Ms. Villegas. CHR. DAVID: Any discussion, Council Members? Go ahead Mr. Kanealii-Kleinfelder. MR. KANEALII-KLEINFELDER: I have a question for Deanna, and she's nice enough to be here already. CHR. DAVID: Thank you, Ms. Sako. MR. KANEALII-KLEINFELDER: Thank you, Deanna. Thank you, Chair. (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) Page 6 FC -33 June 3, 2020 MR. KANEALI`I-KLEINFELDER: So at first glance, $240 per year if a great price for our lease. But then, I've seen the facility and it's probably worth more than what we're paying. But at the same time, the facility is very old. I know we have CIP (Capital Improvement Project) for a new fire station in Kea`au. Is there any movement on that to move us out of MS. SAKO: I think we need to find a location first. But we are actively looking, but Shipman agreed to extend for three years. So during that time, they'll be looking at finding another location, because the sizes of the stations are extremely small as well. MR. KANEALI`I-KLEINFELDER: Yeah, they're tiny and I've had complaints from the officers that it's more just a place to do paperwork if that, but then recently I found out I've known for a long time, Pahoa was meant to be more of a substation and Kea`au was supposed to be the main station for that area. And I'm seeing in the CIP, I'm hopeful and wondering that we're pushing ahead and getting something going, because I know Shipman is willing. And I'd love to see some collaboration there. Finding the Police and Fire a home that suits them in Kea`au. MS. SAKO: If we can reach an agreeable price. MR. KANEALI`I-KLEINFELDER: Okay, good, yeah. That's my only question, thank you. CHR. DAVID: Thank you, Mr. Kaneali`i-Kleinfelder and Director Sako. Is there anyone else that has questions? Seeing none, alright, all those in favor of approving Resolution 646-20 please say "aye." Vote on Res. 646-20: The motion to recommend adoption of Res. 646-20 (Approved) was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Thank you, Mr. Clerk. Before we go on, by any chance is Ms. Nims is in our Hilo Chambers? Okay, then you know what, can we go back up one and take Communication 959 out of order? Page 7 FC -33 June 3, 2020 Comm. 959: POST AUDIT REPORTS FOR FISCAL YEAR ENDING JUNE 30, 2019 From Legislative Auditor Bonnie S. Nims, dated May 13, 2020, transmitting the Comprehensive Annual Financial Report prepared by the Department of Finance and the Single Audit of Federal Financial Assistance Program Report prepared by external auditor N&K CPAs, Inc., pursuant to Hawaii County Charter, Section 10-13. ; and Comm. 959.1: From Legislative Auditor Bonnie S. Nims, transmitting PowerPoint presentation materials prepared by N&K CPAs, Inc. CHR. DAVID: Thank you very much. And Ms. Nims, thank you for being here, and are you there in the Hilo Chambers? And while Ms. Nims comes to the table, I just wanted to make a note that attached to the communication is the copy of the PowerPoint prepared by N&K CPAs. And Ms. Nims, can you just let us know what generally the report covers and if we have specific questions, I can actually entertain questions that can be directed to the auditors if there's some that you can't answer. So just give us a summary of what this report entailed and the result. (Note: At this time, Legislative Auditor Bonnie Nims came forward to address the members of the Committee.) MS. NIMS: Bonnie Nims, Legislative Auditor. This audit is the annual audit of the annual financial statements and the single audit, or they audit the schedule of expenditure of federal awards. They take some federal money; they select the major programs and audit those to make sure that the County is spending those funds in accordance with the grant agreements. And then they audit the financial statements to insure that they're in compliance with GAAP (Generally Accepted Accounting Principles). And again, they've done this every year for, I think, we're on our third year of our second term of our contract. So basically, it was a clean opinion, no findings. They audited four federal grants and basically had no comments. It was, like I said, a clean opinion. CHR. DAVID: Right. Thank you for letting us know about that. Council Members do you have any questions for Ms. Nims? On the Hilo side? Kona, we don't have any questions here. Thank you, Ms. Nims for being available today. Alright, all those in favor of filing Communication 959 please say "aye." Page 8 FC -33 Vote on Comm. 959 Filed Return to Order of Business: June 3, 2020 The motion to close file on Comm. 959 was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 9. Noes: None. Absent: None. Mr. Clerk, I guess you canis anyone there for Item 10, Resolution 647-20? MR. BROWN: We have just Director Sako with us. Thank you. CHR. DAVID: Alright, then let's go back to the top of the agenda and take it from there. So, can we just start with Communication 10.38, please? The Chair directed the Committee to return to the order of business. COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 10.38: REPORT OF CHANGE ORDERS AUTHORIZED: APRIL 16 — 30, 2020 From Finance Director Deanna Sako, dated May 5, 2020, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Motion to Close File: Vote on Comm. 10.38 Filed Ms. Villegas moved to close file on Comm. 10.38. Seconded by Ms. Eoff. CHR. DAVID: Any discussion, Council Members? Seeing none, all those in favor, please say "aye." The motion to close file on Comm. 10.38 was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 9. Noes: None. Absent: None. Excused: None. Page 9 FC -33 June 3, 2020 CHR. DAVID: Mr. Clerk, Communication 11.30. Comm. 11.30: REPORT OF FUND TRANSFERS AUTHORIZED: APRIL 1 — 15, 2020 From Controller Kay Oshiro, dated April 21, 2020. Motion to Close File: Mr. Richards moved to close file on Comm. 11.30. Seconded by Ms. Villegas. CHR. DAVID: Any discussion? Seeing none, all those in favor please say "aye." Vote on Comm. 11.30: The motion to close file on Comm. 11.30 was carried Filed by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Mr. Clerk, Communication 11.31. Comm. 11.31: REPORT OF FUND TRANSFERS AUTHORIZED: APRIL 16 — 30, 2020 From Controller Kay Oshiro, dated May 1, 2020. Motion to Close File: Ms. Villegas moved to close file on Comm. 11.31. Seconded by Mr. Richards. CHR. DAVID: Any discussion? Seeing none, all those in favor please say "aye." Vote on Comm. 11.31: The motion to close file on Comm. 11.31 was carried Filed by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Mr. Clerk, Communication 119.5. Page 10 FC -33 June 3, 2020 Comm. 119.5: THIRD QUARTER REALLOCATION REPORT: JANUARY — MARCH 2020 From Human Resources Director William V. Brilhante, Jr., dated May 11, 2020. Motion to Close File: Mr. Richards moved to close file on Comm. 119.5. Seconded by Ms. Villegas. CHR. DAVID: Any discussion Council Members? Seeing none, all those in favor please say "aye." Vote on Comm. 119.5: The motion to close file on Comm. 119.5 was carried Filed by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Moving on to Communication 913. Comm. 913: CERTIFICATION OF NET TAXABLE REAL PROPERTY VALUE FOR TAX YEAR 2020-2021 From Finance Director Deanna Sako, dated April 30, 2020, transmitting the above report pursuant to Chapter 19, Section 19-90(d) of the Hawaii County Code. The certified total of net taxable real property is $35,242,547,841. Motion to Close File: Mr. Richards moved to close file on Comm. 913. Seconded by Ms. Villegas. CHR. DAVID: Questions, Council Members? Go ahead, Mr. Richards. MR. RICHARDS: Good afternoon Deanna. Thanks for coming back to the party. The certifications of values right now, this is done prior to what we've just been coming through right now with the COVID, correct? MS. SAKO: Right. The evaluation date is January 1st MR. RICHARDS: Okay, so right now I'm sure there's a lot of influx, and what is the usual appeal as far as the value? The real question is, how is this going to affect our tax revenue going forward? MS. SAKO: These are the certified values for the fiscal year coming up. We have the appeals in here. Everything is in here. Page 11 FC -33 Vote on Comm. 913 Filed June 3, 2020 MR. RICHARDS: So this is it? MS. SAKO: Yeah, so the values are not being impacted. Next year's values for the following fiscal year maybe impacted depending on what happens, yes. MR. RICHARDS: And—actually I'm going to yield right now because I've got to figure out how to phrase that. I'll yield, Chair. CHR. DAVID: Okay, thank you, Mr. Richards. Anyone else on the Hilo side wanting to speak? Kona? No one in Kona. Mr. Richards, okay. MR. RICHARDS: Yes, I'm ready. So Deanna, I had a constituent contact me and it had to do with the certification of their property in agriculture and their assessed value jumped by 600 percent from last to this year. And they're going through the appeal process. Has anything changed in how things are being categorized? MS. SAKO: No, if something increased that much in the Ag category, it was more likely they loss their Ag dedication or their Ag usage. Lisa (Miura) guys would have to check that particular TMK (tax map key), but that sounds more like they may have lost an exemption or something that they were getting if they were in the dedicated program and they came out of it. Or we went by and they weren't actually using it in Ag. I mean a number of different things could happen, but they can look specifically. MR. RICHARDS: Okay. I'll get together with Lisa then and we can talk story about that property. So okay, thanks Chair, I yield. CHR. DAVID: Thank you, Mr. Richards. And thank you, Ms. Sako. Anyone else? Seeing none, all those in favor of filing Communication 913, please say Ic aye. The motion to close file on Comm. 913 was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David – 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Mr. Clerk, I believe the last one is Resolution 647.20. Page 12 FC -33 June 3, 2020 ORDER OF The Chair directed the Committee to proceed to the next order of business, RESOLUTIONS: Order of Resolutions. (Note: Items in this category were taken up previously, out of order.) Res. 647-20: AUTHORIZES THE OFFICE OF THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE UNITED STATES DEPARTMENT OF THE INTERIOR, NATIONAL PARK SERVICE, PURSUANT TO HAWAII REVISED STATUES SECTION 46-7, FOR MUTUAL ASSISTANCE WITH THE HAWAII FIRE DEPARTMENT IN AN EMERGENCY Authorizes a Memorandum of Understanding to provide services during emergency incidents on land administered by the National Park Service. Reference: Comm. 948 Intr. by: Ms. David (B/R) Motion to Approve: Mr. Villegas moved to recommend adoption of Res. 647-20. Seconded by Mr. Richards. CHR. DAVID: And I believe, Ms. Sako, were you going to be able to answer questions if Council Members had questions on this one too? Alright, any questions regarding this, Council Members on the Hilo side? I have no questions here on the Kona side, so thank you, Deanna that was quick. Alright, all those in favor of approving Resolution 647-20, please say "aye." Vote on Res. 647-20: The motion to recommend adoption of Res. 647-20 (Approved) was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kaneali`i-Kleinfelder, Kierkiewicz, Lee Loy, Poindexter, Richards, Villegas, and Chair David — 9. Noes: None. Absent: None. 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: I believe that concludes our agenda for this afternoon. May I please have a motion to adjourn? Page 13 FC-33 June 3,2020 ADJOURN- There being no further business, at 1:28 p.m., Ms. Villegas 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, Villegas, and Chair David—9. Noes: None. Absent: None. Excused: None. CHR. DAVID: And the Finance Committee is adjourned. Mahalo, everybody. Approved: 401100., Ms. Maile Med iros David, Chair (Date) Finance Committee MD/dt Page 14