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HomeMy WebLinkAbout03/14/2012 Regular Council MeetingCOUNCIL MEETING MARCH 14, 2012 The Council Meeting of the Council of the County of Kaua`i was called to order by the Council Chair at the Council Chambers, 4396 Rice Street, Room 201, Lihu`e, Kaua`i, on Wednesday, March 14, 2012 at 9:43 a.m., after which the following members answered the call of the roll: Honorable Honorable Honorable Honorable Honorable Honorable Honorable Ms. Nakamura moved to approve the Minutes as Mr. Rapozo, and unanimously carried. APPROVAL OF AGENDA. Mr. Rapozo moved for approval of the agenda as Mr. Chang, and unanimously carried. Tim Bynum Dickie Chang KipuKai Kuali`i Nadine K. Nakamura Mel Rapozo JoAnn A. Yukimura Jay Furfaro MINUTES of the following meetings of the Council: Council Goal Setting Workshop of January 24, 2012 Council Meeting of January 25, 2012 Public Hearing of February 15, 2012 re: Bills Nos. and 2428. CONSENT CALENDAR: circulated, seconded by 2424, 2425, 2426, 2427, circulated, seconded by C 2012 -69 Communication (02/13/2012) from the County Engineer, transmitting for Council consideration, a traffic resolution establishing a no- parking zone along a portion of the County access road in the vicinity of Vidinha Stadium soccer fields, Lihu`e District: Mr. Rapozo moved to receive C 2012 -83 for the record, seconded by Mr. Kuali`i, and unanimously carried. There being no objections, the rules were suspended for public testimony. BRAD ROCKWELL, POWER SUPPLY MANAGER, KIUC: Good Morning, Chair, I wish to speak on Bill No. 2424, the Bill for an ordinance to allow solar energy facilities in the agriculture district. I am Brad Rockwell representing KIUC, I am the Power Supply Manager for KIUC. Thank you for the opportunity to testify on this issue. COUNCIL MEETING 2 MARCH 14, 2012 KIUC is concerned about the impact this bill as written could have on planned solar projects. We understand that this bill is meant to address Act 217 amending the Hawai`i Revised Statutes to allow solar farms to be placed on lands with soil classified by the State's Land Study Bureau with an overall productivity rating of B, C, D, or E. For lands classified B or C, however, a solar farm cannot occupy more than ten (10) acres or twenty percent (20 %) of the land, or whichever is less. This bill would add an extra County approval process with public hearing and use permit steps for solar projects looking to be built on B rated lands. KIUC understands the desire to reserve our best agricultural lands for farming and it is our understanding that there are currently tens of thousands of acres of such lands that are not in farming today. As I will explain, the total amount of solar resources that can be developed on Kaua`i is relatively small compared to the amount of available prime agricultural lands. And so KIUC believes the bill should recognize this fact. KIUC's Strategic Plan calls for a transition to fifty percent (50 %) renewable generation by 2023. Solar photovoltaic or PV has been the renewable generation technology that has been at the leading edge of this transition largely due to ease of permitting. There is a limit, however, to how much solar PV KIUC's grid can take. We currently believe the limit on large utility scale solar PV projects is fifty percent (50 %) of the daytime load due to the need to be able to cover the intermittent nature of solar PV with batteries and conventional spinning reserve. Currently our daytime load is fifty to sixty megawatts (50 to 60 MW) which equates to a limit of twenty - five to thirty megawatts (25 to 30 MW) of large utility scale solar PV projects. In other words, when the clouds come, the batteries are needed to make -up for the loss of solar generation, but the batteries do not last long, minutes. And so if the clouds remain, our conventional generators will need to cover the loss of solar generation for longer periods, hours. To understand the scale of an effective limit of twenty -five to thirty (25 -30 MW) of solar PV is helpful to know that it takes about four (4) acres to produce one (1) MW of solar PV it on Kaua`i. Therefore, for the foreseeable future, KIUC believes that the maximum land required for large utility scale solar PV projects will be limited to about 120 acres for grid stability reasons. As of today KIUC has twenty -one megawatts (21 MW) of solar PV in development, three megawatts (3 MW) in Koloa on D and E rated lands; six megawatts (6 MW) in `Ele`ele adjacent to the Port Allen Power Plant on industrial zoned lands; and twelve megawatts (12 MW) in Anahola Department of Hawaiian Home Lands (DHHL). We recently released a request for offer looking for a suitable site for an additional eight to ten (8 to 10) megawatts which would require an additional approximate forty (40) acres. An additional ten megawatts (10 MW) or forty (40) acres could possibly be sought by KIUC if large cost effective long term energy storage such as pump storage hydro becomes available. COUNCIL MEETING 3 MARCH 14, 2012 In summary, since my time is up, KIUC believes the amount of land required for additional solar PV projects is quite small in comparison to the amount of prime ag lands available for farming, and still believes the additional step that this bill as written will impose is unnecessary. Thank you. Chair Furfaro: It is probably the intent of this Council today, possibly to defer your item. I will pose no questions to you, but this is the third request from this Council to KIUC, we are expecting you to give that testimony to the Planning Department for the purposes of understanding what your demands will be on agricultural lands. If I can pass it on to you, I hope you can comply to this request. Thank you very much. Is there anyone else that wants to testify on any item on the agenda before we go to the first item today which is found in our resolution section? COMMUNICATIONS: C 2012 -73 Communication (02/29/2012) from Vice Chair Yukimura and Councilmember Kuali`i, transmitting for Council consideration, a resolution calling for a just and equitable solution at Koloa Camp and for withdrawal of eviction notices by Grove Farm Company to allow for exploring of alternatives: Mr. Kuali`i moved to receive C 2012 -73, seconded by Mr. Rapozo, and unanimously carried. RESOLUTIONS: Resolution No. 2012 -29, RESOLUTION CALLING FOR A JUST AND EQUITABLE SOLUTION AT KOLOA CAMP AND REQUESTING WITHDRAWAL OF EVICTION NOTICES BY GROVE FARM COMPANY TO ALLOW FOR EXPLORING OF ALTERNATIVES: Mr. Kuali`i moved to approve Resolution No. 2012 -29, seconded by Ms. Yukimura. Chair Furfaro: For the record please note the Clerk's Department has confirmed to me that we have one hundred forty -six (146) pieces of testimony both pro and con. As the introducer, would you like to have a moment to speak first Mr. Kuali`i? Mr. Kuali`i, the Chair recognizes you. Mr. Kuali`i: I just wanted to say that the reason for this resolution is we have been to several community meetings and in responding to the community concern that the tenants would like more time and more consideration and a way to work out the dire situation that they are currently in in being evicted. I do accept that it is a landlord- tenant legal issue that the landlord has every right to evict tenants, we just believe that the significance of this neighborhood being one (1) of the last plantation era communities and with the long time residents we just COUNCIL MEETING 4 MARCH 14, 2012 hope that there is a way to spend a little more time and work and come to some resolution. I realize that Grove Farm has been working with some of the families and we would like to see them do for each and all of the families what is the right thing and it may take more time. This resolution in no way is saying that we feel that the Council has the right to say and intervene with a private business matter if you will. But we think it is more...just about the legality and just about the private matter, but that it is also a community matter, and a family matter, and a matter of aloha. We live in a special place where we put people first. We know that Grove Farm has been that local kama'aina company that has done that in the past. We just want to see more consideration and more time and more aloha. I guess that is all I will say for now, Council Chair. Chair Furfaro: Thank you. Vice Chair Yukimura, I will recognize you if you would like to say anything before I suspend the rules and I will also set the tone for the speaking order today. You have the floor, Vice Chair. Ms. Yukimura: Thank you, Mr. Chair. First of all I want to thank you, Chair, for putting this item on the agenda. As we have seen from the testimony it is an issue of great concern out there in the community. I also want to remind everyone that this proposed resolution is non - binding; it does not mandate or dictate anything, it is actually a request. It is a request if it is passed by the Council that the parties come together with appropriate support from government and community, looks at possibilities. It does not assume any particular possibility but what it hopes for is a win -win, a win -win that would allow new housing development in Koloa possibly. But what it expresses is faith in the power of co- creation of good intention, of goodwill of caring for all and not just for some. So we are not saying that this alternative process will be easy; it will be hard work actually. But in the end it will be worth it because we would not have left a stone unturned to see if we can find a win -win. So that is the intention behind this resolution, it is non - binding, it does not mandate anything. It requests that parties come together and see if we can work on solutions. Chair Furfaro: Thank you. Before I suspend the rules I believe we have twelve (12) registered speakers. Their names will be read off, they will be allowed on a resolution three (3) minutes to state their commentary. It is then my intent after addressing the two (2) requests for the early speakers, I will then recognize Grove Farm's request to speak last, and then as Chairman I reserve the right to call up the County Attorney last for any commentary that they might want to offer this Council as far as general information as it comes to landlord- tenant issues. There being no objections, the rules were suspended. COUNCIL MEETING 5 MARCH 14, 2012 RAYMOND CATANIA, PUHI RESIDENT: I am glad this resolution is coming to the Council. My name is Raymond Catania, I live in Puhi, I also work as a State employee for almost twenty -two (22) years, and I am just an ordinary working man. First of all, I want to give my aloha to the brothers and sisters of Koloa Camp for fighting back. They are the ones that made me come over here, I have to be here in support of you guys. As far as I am concerned, I did send in my email, my testimony, and this is a human right that every person deserves a home, especially working class people like ourselves who work plantation before or working right now, driving bus, cleaning this building, working in State and County offices; we deserve one (1) home. Everybody here deserve one (1) house. As far as I am concerned I support the brothers and sisters here. I believe they have over 2,000 names on their petitions. So as far as I am concerned, housing is a right and not a privilege, and an injury to one (1) working person in trying to survive, to me, is an injury to all. Aloha. KEKOA DIZOL, KOLOA RESIDENT: Good morning Chair Furfaro and Councilmembers. Chair Furfaro: Good morning, Kekoa, you will have to introduce yourself with your full name. Mr. Dizol: My name is Kekoa Dizol, I am a resident of Koloa, I live on Wailani Road, that is the road to the camp. I have lived there my whole life and I currently reside there with my family. I have seen Koloa and Po`ipu change before my eyes. It is killing me inside to see the place where I grew up vanish. Now one (1) of the things I love the most is planning to be destroyed. I am not the only one (1) who feels this way. There are families out there right now thinking the same thing. These families and friends I grew up with and are being displaced and will also lose this community they know. Today you guys will get a chance to hear a resolution. There is a way we all can win. We are not against putting fifty (50) homes, but we are against destroying homes where there is already lives and a history of Koloa that can never be replaced. I believe you guys see it the same way. Please vote in favor for saving Koloa Camp. Thank you. Chair Furfaro: Thank you Kekoa. GLENN MICKENS, RESIDENT: Thank you Jay. For the record, Glenn Mickens. Good Morning Councilmembers. You have a copy of my testimony, let me read it for the viewing public please. Again as pointed out, Resolution No. 2012 states, it calls for a just and equitable solution at Koloa Camp and requesting withdrawal of eviction notices by Grove Farm Company to allow the exploration of alternatives; I think that is COUNCIL MEETING 6 MARCH 14, 2012 outstandingly said. I support this resolution one hundred percent (100 %) and applaud JoAnn and KipuKai for introducing it. It is hard to believe that a community- oriented company like Grove Farm who, as the resolution says, quote "has a long and admirable legacy of charitable giving and supporting the community and that it is a triple bottom line company that takes into account people, profits, and the planet in all its decisions," would even consider evicting these eight (8) households and thirteen (13) families from their long -time homes in the Koloa Camp. Maybe Grove Farm's triple bottom line of people, profit, and the planet is letting profits completely override the other two (2). For me, the only way Grove Farm should ever be allowed to proceed with developing this twelve (12) acre site into fifty (50) residential homes is by having them set aside at least eight (8) households that will be affordable; and I do not mean $280,000.00 or whatever that price means they say is affordable. Chair Furfaro: It is $220,000.00. Mr. Mickens: $220,000.00, thank you, Jay, for that correction. Anyway, I do not think for these families $220,000.00 is going to be affordable. For these thirteen (13) families to move into and providing all of them with proper temporary housing while the new homes are being constructed. I understand this project could take up to three (3) years to complete, so if that is true, these people are certainly going to have to have some place to go. If Grove Farm wants to live up to their reputation of supporting the community, then they should have no problem with taking care of these thirteen (13) families. Thank you, Jay. Chair Furfaro: Thank you. KEPA KRUSE, KOLOA CAMP RESIDENT: Aloha, Council Chair Furfaro and Councilmembers, thank you for giving me the opportunity to speak today. I am here to ask for your support for Resolution No. 2012 -29 in support of Koloa Camp. My name is Kepa Kruse, I am twenty -nine (29) years old, I grew up born and raised in Koloa Camp. I am here to ask for your support for Resolution No. 2012 -29 because for one (1), it is not asking Grove Farm to violate any of its tenant - landlord laws, it is simply asking for the opportunity to create more. This opportunity, the core of the resolution is for the community to work with Grove Farm. And as I have stated in my testimony and previous meetings with Councilmembers, there has been much opposition. There has been so much energy on both sides of the table from Grove Farm and from the residents to make this work. Can you imagine how incredible that progress would have been if those two (2) sides joined together in one (1) common goal to create new opportunities for the old and new. Why do we have to sacrifice housing that already exists to create new housing, when the power exists COUNCIL MEETING 7 MARCH 14, 2012 in this room and on this island to create those opportunities to extend Grove Farm's ability to create an affordable housing project. There are alternatives. The alternatives that exist are possible and it is a very reasonable request that I ask that you support this resolution. I know I have only got three (3) minutes and I ask that if possible if there is three (3) minutes at the end, I would like to summarize or fill in any gaps if there are any questions any of the Councilmembers might have. Chair Furfaro: Kepa, let me ask you, are you currently actually a resident of one (1) of those homes? Mr. Kruse: Chair Furfaro: Mr. Kruse: Chair Furfaro: I am living there with my father. I will extend you another three (3) minutes. Mr. Kruse: Thank you sir. I would just like to add before I finish my testimony, this is a book of two thousand thirty -four (2,034) signatures of registered voters the age of eighteen (18) and over from the island of Kaua`i. These are two thousand (2,000) people who are waiting to hear what the Council has to say, waiting to see the results of this housing issue. I agree it is very much a tenant - landlord issue and I understand the stance that this Council may take that it is a private matter, but there are two thousand (2,000) members of this community who are willing to stand -up and support and fight for their history and fight for these people who are trying to save their homes. Thank you very much for giving me your time. Chair Furfaro: Kepa let me say that the reality is every two (2) years we are all exposed on our performance based on the voters outlook. But I want to make sure that you also understand that as Council Vice Chair Yukimura had stated, we have no legal powers to involve ourselves in a landlord- tenant issue, that is out of the jurisdiction of the Council. But it is also very important that you understand that certain conditions could find us in a position that it exposes the County of Kaua`i too against the other side of those rules; we have to be cautious of that. I think we have questions for you from some of the Councilmembers. Sure. Mr. Bynum. Mr. Bynum: Good morning, Kepa, and thank you for being here. We have received a lot of information, some from emails, some from the press, and I just have a couple of questions just to the best of your knowledge. Prior to receiving the termination notices was there any dialogue between any of the tenants and Grove Farm about alternatives prior to that? COUNCIL MEETING 8 MARCH 14, 2012 Mr. Kruse: Well on November 8 when the eviction notices were issued it, kind of came out of nowhere. I think the first fight for the community was to unite, and unite is definitely something that has been accomplished. We have had a massive amount of support from the community and in that support the alternatives have come about simply because of opening the channels of communication. That is what this resolution is about is opening those channels so that we can find those alternatives and find a way to make, we want Grove Farm to build this project, we want fifty (50) more homes in the Koloa area. If you did a search on the MLS website for these homes, there are less than five (5) single - family homes available in Koloa for that price range. There are even less in Lihu`e where fifty -four percent (54 %) of the island's population works. There are alternatives. I submitted an alternative, a potential alternative in my written testimony to the Council. The reason why this Council stands such an important part of that process is that the Council is going to be the one (1) that has the chance to approve the extension of the zoning for that appropriate alternative solution. Mr. Bynum: But my question was for the tenants, the first knowledge they had was the letter they received? There was no individual outreach prior to that that you are aware of? Mr. Kruse: Not that I am aware of. There may have been talk and discussion, when the letter came it became official, and it became the beginning of a long fight. I has been three (3) or four (4) months already of people organizing, getting together, and finding alternatives. Mr. Bynum: So since this has gone more public, we are being told that Grove Farm is working individually with each tenant trying to find alternatives, is that your experience? Mr. Kruse: I would say that is a difficult question to answer because each family has their own personal relationship with Grove Farm. I am aware that some tenants have been offered temporary residences in Kapaia, in Pa'anau Village. Mrs. Fernandez who is not here today, an eighty -two (82) year old woman who lived in the camp for fifty -seven (57) years, she has been offered a place in Pa'anau Village against her will, she does not want to be in Pa'anau Village, but her family feels that that is a safe place for her to be. Two (2) weeks ago when the March 8 eviction deadline was looming, I had actually asked their family to remove her from the camp for fear that something may happen to her; that weighed heavy on my heart, to know that somebody may come and try to drag this woman out of her house or try to tell her that she is trespassing in the very home that she has lived in for fifty -seven (57) years; that hurts my heart to see something like that. So to answer your question, I am aware that they are working with individual tenants, but this resolution creates the opportunity for more than just individual tenants to COUNCIL MEETING 9 MARCH 14, 2012 win, it creates an opportunity for the entire community to win. I think that is what the goal . of this is today. Mr. Bynum: Thank you. Mr. Kruse: Thank you. Chair Furfaro: Mr. Rapozo and then Vice Chair Yukimura. Mr. Rapozo: Thank you. Thanks Kepa for being here today and thanks for your community involvement. I had a question about the petition and I am assuming we will get copies of it. Mr. Kruse: Definitely. Mr. Rapozo: Did the petition include the copy of the resolution itself? Mr. Kruse: It has a summation of the resolution. Mr. Rapozo: What is the summation? Mr. Kruse: Would you like me to read it? Mr. Rapozo: Please. Mr. Kruse: It says, we the undersigned residents and voters of Kaua`i support the Koloa Camp tenants in their request to continue living and to purchase their homes at Koloa Camp, the location of some of the original plantation housing for the oldest sugar plantation in the State. Even as Kaua`i develops and changes, we must honor and sustain the people who by their blood, sweat, and tears, and talent have created Koloa Town and its sense of place. We call upon Grove Farm to withdraw their eviction notices and to work with the tenants, Peter Savio, and the County to seek a win -win solution for Koloa Camp who pledge to stand with the tenants in their fight to save their homes. Mr. Rapozo: We received a lot of testimony on both sides of the issue and we are getting them as we speak; a lot of them supporting the resolution, a lot of them are not supporting the resolution. I did have the occasion to speak to probably three (3) of the people that were in support of the resolution and when I clarified what the resolution actually said, that is not what they were supporting; they were supporting the Council resolution that would get Grove Farm to work with the community, work with them for a win -win. I would sign that, I would sign that today. I do not think anyone on this table is opposing to reaching a COUNCIL MEETING 10 MARCH 14, 2012 win -win. But let me ask you this question because I think this is where I have a problem with this resolution, and I will not support it with this language. This resolution takes a private developer, Peter Savio; this Council is not in the business of endorsing any particular developer, that is a concern I have. Mr. Kruse: I am very clear on that. Mr. Rapozo: And I understand that Savio has come out, and God bless him, but this body, I think Mr. Furfaro pretty much prefaced my concerns in his opening statement. I think we are treading on dangerous waters when we say hey Mayor we are asking that you work with Savio, offer his assistance; that is not our job. So I think as, and I think that petitions are wonderful and I like that, but I think we need to make sure we all understand that the people that are submitting the testimonies are well aware of what this resolution actually puts us as Councilmembers in a position to defend. We have to uphold the law, we have to uphold the Charter, we have to make sure that we do not...this, to me, I am concerned in fact I did ask the Chair to have the County Attorney take a look at this because what about all the other affordable housing developers that are here that could be helpful? Mr. Kruse: Understood. Mr. Rapozo: This separates one (1) and I think that is a problem, and I think it is a legal issue. I do not want to get sued as a Councilmember individually. If we act outside of our scope, we are on our own; we do not get the benefit of the County Attorney. So I just want you to understand that some of the language in here, of course I support the concept. I think that Grove Farm and the County, and I spoke with a Kaua`i Housing Development Corporation representative this morning. They are willing to open up some units at the new Pa'anau. I think all of those things have to work and I think we have to do our best effort to get to a win -win. I think there is no dispute on that. But when we start isolating things like hey Planning Department go find something that would require a public hearing, I think we as a Council are treading on some dangerous waters when we do that. I think the concept, yes it is non - binding I understand, but the influence of a resolution is there, there is an influence, we are asking the Mayor. I know Councilmember Yukimura said it is not directed at any one (1) particular thing. When you talk about hey Mayor we want you, the Council as a body collectively, want you to go work with Peter Savio and offer him the assistance, I think that is kind of... and I hope you understand my point of view. Mr. Kruse: I understand. Mr. Rapozo: There is no other, I think I share your concern and I share your desire to get to a win -win, we all do, but we are limited as COUNCIL MEETING 11 MARCH 14, 2012 well by some of the legal parameters that are set forth by law. I just hope, this is a difficult resolution for us to address here because if we do not support it we do not support Koloa Camp, and that is not true. We have a legal obligation that we must comply with in addition to the emotional part of me that wants to go there and help. So I just want you guys to all understand that because I feel the passion. Mr. Kruse: Can I take a moment to clarify? Mr. Rapozo: Sure. Chair Furfaro: Excuse me. Before you are given that moment, Mr. Rapozo would you pose that in a question because he has had his six (6) minutes. Can you pose that in a question? Mr. Rapozo: I guess my original question was do you believe that the Council, the Kaua`i County Council, should be suggesting or endorsing the Administration to work with a specific developer? Mr. Kruse: I think with the issue of specifics, Peter Savio was included to illustrate that alternatives do exist. If you read the resolution, clearly it will say it is not mandating anybody to work with them, it is just allowing access for anybody who may potentially have an alternative. Peter Savio is one (1) individual who stepped forward and offered to purchase the land at market value and give Grove Farm a fair and just deal for their land. This petition was started in December, and Peter Savio emerged throughout the last few months showing that alternatives do exist. For us to change what the petition said, to change the statement above it halfway through our signature process, I think that would have been unfair to people who had previously signed. So any amount of specifics were just to illustrate that alternatives are possible and there are people who have stepped forward and no way does the resolution call for any specific individual to have a greater access than another one (1). A11 it simply shows is that it is possible. Mr. Rapozo: Can I just... Chair Furfaro: I am going to give him another minute after you ask your questions because I extended him the six (6) minute time, but we are going to use this as posed as another question. Mr. Rapozo: Thank you. Kepa, I was not referencing your petition, I think your petition is a good one (1) and I think I said that earlier. The petition was not my concern, I think the petition is going to help us. But I want to read that one (1) paragraph that says the Council requests Mayor Carvalho his Administration, and Grove Farm to provide appropriate assistance to Peter Savio, a COUNCIL MEETING 12 MARCH 14, 2012 knowledgeable affordable housing developer to allow him to develop a realistic proposal for allowing the tenants to live on site such that a possibility may be considered, reconsidered, incorporated as part of the solution. This resolution specifically targets Peter Savio. I do not know. Peter Savio. I see his commercials on tv and that is as far as I know. It has nothing to do with Peter Savio. The resolution does not say to a qualified knowledgeable affordable housing developer within the State of Hawai`i; it says Peter Savio. That is a direct endorsement of a developer, private developer that I cannot support. I hope you can appreciate that because like I said I have a very small house, I do not want to lose it in a lawsuit, that is all I am trying to say. Mr. Kruse: I appreciate that you are trying to clarify this. Would it be a more effective resolution if it stated give proper assistance to any individual who steps forward to support Koloa in their plight? Mr. Rapozo: I think that would have been a better choice of words. I think this one (1) puts us in a very bad legal predicament. Thank you. Mr. Kruse: Understood and thank you. Chair Furfaro: Before you go any farther, I had extended you an additional three (3) minutes. Mr. Kruse: Thank you sir. Chair Furfaro: And then we started with questions from Mr. Rapozo. In all fairness for myself I am going to give you some more time to summarize before I recognize any other Councilmembers asking you questions. Mr. Kruse: Would it be more effective to summarize in the end of the testimonies? Chair Furfaro: You can take my offer now to summarize and then I am going to pose more questions. I am not going to have a series of questions go on and then give you that time. You have three (3) additional minutes now and then I will pose a question. Council Vice Chair that is my decision as Chair. You have three (3) more minutes to add anything that you want to on this resolution piece and then I am going to open it up to questions with other Councilmembers. Mr. Kruse: There is absolutely no way I can take those three (3) minutes at the end? COUNCIL MEETING 13 MARCH 14, 2012 Chair Furfaro: Unfortunately these are my rules, I should have let you have the whole six (6) minutes if I extended the time to you before I let Mr. Rapozo do questions. Mr. Kruse: Okay I appreciate it. Chair Furfaro: I am giving you an additional three (3) minutes right now because you are a tenant. Mr. Kruse: Thank you Chair. I guess to summarize, there is nothing that can be said that has not already been said. This resolution is about finding a way, a means to create a solution that benefits the landowner, which benefits the tenants, which benefits the greater community. The alternatives that exist are reasonable and they are within our grasp. Given that as of yesterday no permits have been applied for for this project, I feel that it is a reasonable thing to ask this Council. Maybe the specifics of the resolution are too in favor of specific individuals, maybe we can amend that. But at its core we believe that this resolution is for the people. This resolution is asking for the community to help Grove Farm, to help them achieve their goal of finding fifty (50) affordable units, a fifty (50) unit affordable housing project on the South Shore. It is about creating a chance to instill new roots into a community without chopping the roots that have been there, some for sixty (60), eighty (80), one hundred (100) years. I feel this is an important issue and this is treading on a subject which could possibly be handled in a judiciary system, but we live on the island of Kaua`i filled with aloha, with communities that support each other. This community holds each other together and this resolution is asking that that community can remain so that we can find more communities. I just do not believe that housing should be at the expense of housing that already exists. I appreciate that you gave me extra time, thank you Chair, thank you Councilmembers. Chair Furfaro: Kepa, now I am going to pose questions from other Councilmembers to you. The first one (1) I will recognize is Vice Chair Yukimura. Ms. Yukimura: Thank you Chair. Kepa, as a follow -up to Councilmember Bynum's question, if there were preliminary discussion prior to the eviction notice being given, did it include the option for protecting the community and finding a way for tenants to continue on the land? Mr. Kruse: No. Ms. Yukimura: Okay. So it was mainly about can we help you get out and off of the land? COUNCIL MEETING 14 MARCH 14, 2012 Mr. Kruse: Options that were discussed included moving one (1) family to Pa'anau Village, which is very reasonable and we thank Grove Farm for extending those opportunities, but when doing research, we find that Pa'anau Village has a waitlist of two (2) years. What gives preference to people in K5loa Camp over people who have been waiting for two (2) years, and they want to be in Pa'anau Village. Mrs. Fernandez who is eighty -two (82) years old, she does not want to live in Pa'anau Village. She wakes up every morning and waters her flowers and walks around Koloa Camp; she has done that for the past fifty -seven (57) years. Now before I waste my time talking about each individual, let me just run through some of the things that have been offered: One (1) family has been offered a place in Paanau; and two (2) families have been offered the chance to take their homes with them, the inclusion of Michael Faye in a home inspection that was scheduled on March 6 recognizes the historic value of these homes. Michael Faye is an expert in historical housing because he runs the Waimea Plantation Cottages, which takes these historical homes, transports them to Waimea, restores them, and then what he does is he applies for a tax credit because they qualify as historical buildings. Two (2) families were offered the chance to take their homes. The cost for the transport and getting up to code was going to be in the excess of $200,000.00. Grove Farm had stepped forward and offered a $3,000.00 reimbursement upon receipt of their receipts. The $3,000.00 was not offered to tenants for their moving expenses for compensation. I know that my father and I have not been offered any sort of temporary housing. I am aware that Mrs. Pajella has been offered assistance for a two (2) bedroom home in Kapaia for her multi - generational family. In fact, I believe Grove Farm has been extensively working on preparing this for her so that she may have options. This is where the situation becomes emotional because we have a hui of people, we have an `ohana of supporters from Koloa Camp, the greater surrounding community, even people who are off - island. Senator Clayton Hee came this past weekend to view Koloa Camp to learn about our stories, to look into the eyes of all the people who live there. I do not see how evicting our kupuna is beneficial to this community, in fact it is an utter disregard for them. Ms. Yukimura: Okay so we have been talking about a win -win and saying that we should be exploring ways that Grove Farm can do what it wants to do in terms of providing fifty (50) single - family homes for families who want to move into Koloa or back to Koloa. But there is the win on the other side as well. So the question is will it be a win for the Koloa tenants if all the tenants are removed from the land? Mr. Kruse: I think the real loss is going to be to the community and to the great State of Hawai`i because all over, Koloa is recognized as a historic town; it is recognized as the birth place of the sugar industry and in the entire State of Hawaii. By losing the cultural and historical resources such as Koloa COUNCIL MEETING 15 MARCH 14, 2012 Camp, which is directly connected to the first mill site, Waihohonu, which is a nationally recognized landmark, I think what that does is it takes the resources out of the land, it takes the people out of the land, it removes the roots that have been there. I do not see that as being a winning situation. Ms. Yukimura: So what the tenants are asking for as a win for them would be to find a way that they can stay in that camp and also find a way that Grove Farm can produce fifty (50) homes for new homeowners? Is that right? Mr. Kruse: Correct. I would like to clarify, as much support as Grove Farm... Chair Furfaro: Excuse me, Kepa. Through this period you have to respond to the questions not expand more testimony. Mr. Kruse: I apologize. Chair Furfaro: That is just within our rules so let the question come from the person who has the floor. Vice Chair Yukimura. Ms. Yukimura: The tenants themselves are willing to work on different solutions and give their sweat equity or whatever it takes to also make the solutions work? Mr. Kruse: Several alternatives have been proposed, and I feel that the only way that the alternatives can be communicated is by passing this resolution to allow the channels of communication to be open. That is really what this is about, is opening those channels of communication so that we can address the alternatives. Ms. Yukimura: Thank you. Mr. Kruse: Thank you. Ms. Nakamura: Hi Kepa, thank you for being here. Mr. Kruse: Thank you. Ms. Nakamura: My question is, and I received your testimony but really did not get a chance to review it thoroughly, but can you briefly describe some of those alternatives that you are referring to? Mr. Kruse: Sure. The core of this resolution is asking to explore those alternatives, and one (1) alternative in particular which was COUNCIL MEETING 16 MARCH 14, 2012 addressed in my written testimony addresses the extension of the urban zoning to the remainder of the TMK lot which Koloa Camp resides on. Koloa Camp resides on a 24.387 acre lot of land. In 1996 when the Ala Kinoiki Bypass was constructed it created two (2) de facto separate divisions of this land parcel, one (1) on the west where Koloa Camp sits in urban. It is 11.857 acres. One (1) on the east where it is zoned ag is 12.07 acres. This land on the east side presents an incredible opportunity for Grove Farm to build their affordable housing there. It faces none of the problems that the original proposed site... it has got greater vehicular access, it has got elevation above the flood plain, it has got no historical view, no eviction of residents, and no cost for demolish. Grove Farm would save money on their cost of construction, be able to pass better value to the homeowners who are looking to make their roots in Koloa, it would also preserve the historic Koloa Camp which is recognized as the birth place of Hawai`i, and last of all, it would create the most housing options for the greater community; fifty (50) on one (1) side, and the remaining lots of Koloa Camp on the other side, thereby creating a win -win solution. That acreage is less than fifteen (15) acres so it would not require the Land Use Commission to be approved, in fact it could be done at a County level. Without expediting...I want to make sure this process is not expedited to the fact that we overlook potential consequences of that because this process should be given due diligence, which is why we are asking for the stay of eviction. This alternative is reasonable, is within reach, and it creates a better opportunity for Grove Farm. That is what the core of this resolution is about. That is one (1) of the alternatives that was suggested, along with Peter Savio who had stepped forward and offered to purchase the camp; these are just a few of the alternatives that have been discussed. Ms. Nakamura: And so in this first alternative that you described, by using this alternative parcel of land, that is where you would target the fifty (50) units, and then on the existing Koloa Camp site your win -win would be to keep it as is? Mr. Kruse: To keep it as is and restore the neighborhood. It would not be our choice, since Grove Farm is the landowner and they have legal right to do what they choose. I know that although people are afraid of what is going to happen, their first choice has been to remain there. We have stated very clearly that our goal is to preserve that way of life. It is more than just a zone, it is more than just an appropriate zone; these are people's homes, these are people's families, many of them multi - generational, multi- ethnic, stemming from the sugar plantation which created local lifestyle. The entire town is built... Ms. Nakamura: Would you, when you say restore, would you keep it to the same density as it is currently on the 11.87 acres? COUNCIL MEETING 17 MARCH 14, 2012 Mr. Kruse: Under the alternative that was discussed, tenants who have been living there and taking responsibility for over twenty (20) to thirty (30) years, would be able to purchase the land that they have cared for. These families include multi - generational homes. Ms. Nakamura: So you would not be looking at increasing density, you would keep it at the current density? Mr. Kruse: We would keep it at the current density and offer to build homes in the same plantation style of Koloa Camp. Ms. Nakamura: I see. Mr. Kruse: It would have to retain its uniqueness, and its charm, and its character. Ms. Nakamura: So the current assessed value, I was just looking at the real property tax, I guess it must be the entire twenty -five (25) acres, is about $3.3 million. Is that correct? Mr. Kruse: $3.3 million. That is correct. That is for the entire twenty -four (24) acres. Ms. Nakamura: That is for the twenty -four (24), so about roughly half of that you are looking at $1.5 to $1.7 million. Mr. Kruse: Yes. Ms. Nakamura: Are the current tenants willing to go that route and find the $1.7 million to then be able to preserve that? Mr. Kruse: Yes. Individuals have stepped forward and come to the table offering a way to make this a reality, to make it happen. $1.7 million plus a few hundred thousand for...let us say $2 million divided up into twenty -one (21) lots, there are twenty -one (21) historical structures still remaining on the plot. As discussed in the alternative, we would create twenty -one (21) lots for the remaining tenants who are there and their families to purchase. Twenty -one (21) lots across $2 million is roughly $100,000.00 per lot, which is more than affordable, it is less than half of the price of Grove Farm's proposed affordable housing from $220,000.00 all the way up to $460,000.00. Ms. Nakamura: But that would be just for the lot itself? COUNCIL MEETING 18 MARCH 14, 2012 Mr. Kruse: That would be for the lot and the homes on them. Peter Savio, who had stepped forward had offered to purchase the camp as is. Now I do not know, this is all depending on appraisal, and dependent on financing. Ms. Nakamura: And then on the remaining twelve (12) acres, that is where you are proposing that the landowner then go in for some kind of rezoning to build the fifty (50) acres at that point in time? Mr. Kruse: Yes. Ms. Nakamura: That rezoning process typically takes, probably in the best cases, two (2) to three (3) years would you say to go through the process. With the studies that need to be done to go through the rezoning, I would think it would be pretty...let us see, for twelve (12) acres, it is hundreds of thousands of dollars, that is what would be involved on the landowner's side. So there are costs that need to be looked at and time, because for the private corporation time is money, time is resources they could have been receiving, and so we just need to keep all of that into perspective. Mr. Kruse: We were balancing off the potential setbacks that the landowner had in the original location, such as cost for demolition, cost for flood fill, cost for making the area certified above...well working with FEMA with the FEMA guidelines to make sure that the Waihohonu Stream does not have adverse effects upstream, across the stream, and down the stream. There are people in this audience who represent upstream, across the stream, and downstream. Now when you fill in a flood zone, this could create serious, serious repercussions for anyone else that shares the border. Ms. Nakamura: That is why flood studies, environmental assessments, impact studies, there is going to be quite a few studies needed for rezoning an ag land to a residential designation. I think we need to keep that into perspective as we have this dialogue. Mr. Kruse: If there is such a need for housing in the area, why would a twelve (12) acre parcel take two (2) to three (3) years when it is less than fifteen (15) acres? It would not require the use of the Land Use Commission, it could be done on a County level. Ms. Nakamura: Yes, it can be done at the County level if it is under fifteen (15) acres, but requires a class 4 zoning permit which requires going to the Planning Commission, notifying your neighbors, doing your public hearing, it goes through a Planning Commission process. But even before it can go through that process it requires a lot of studies that then go into the application for that zoning application, and then it will require coming to the Council; so it is a two -step COUNCIL MEETING 19 MARCH 14, 2012 process. Then it goes through Council for final rezoning approval. So it is a very drawn out process. Mr. Kruse: The proposed development that Grove Farm wants in Koloa Camp is only a Class 3 Permit, so they do not require a public hearing, they do not require a flood study, they do not require an environmental assessment. Ms. Nakamura: Mr. Kruse: Because it is a R6 zone? Because it is a Class 3 and R6. Ms. Nakamura: Yes, it is residentially zoned. The other parcel from what I gather from this conversation is not? Or is it? Mr. Kruse: It is the same TMK number. When the parcel was split, the zoning changed hands; one (1) side R6, one (1) side ag. Now the ag side is flanked on three (3) sides by R6. It is R6, R6, and R2. So it would not be spot zoning and it is close to the town core, it is close to the amenities such as the ball park. Ms. Nakamura: Yes I just wanted to point out there are costs and time associated, it is not a real simple thing. Mr. Chang: You were born and raised in Koloa Camp and if I am not mistaken, your dad has been there for thirty -two (32) years or what have you. So as you were growing up, did you realize that this arrangement was a month -to -month arrangement as far as the rent? up. Mr. Kruse: Understood. Thank you. Chair Furfaro: Mr. Chang you have the floor. Mr. Chang: Kepa, thanks for being here. Mr. Kruse: Thank you for letting me speak. Mr. Kruse: I was blissfully happy in my youth growing Mr. Chang: And the reason I ask that question is that I know your background, you were a boarder at Kamehameha Schools, and I applaud you for being twenty -nine (29) years young and understanding the process and being a driving force, because I can hear your intelligence. But at some point or COUNCIL MEETING 20 MARCH 14, 2012 another, because I did briefly check with your dad this morning, but in my opinion or from what I have gathered, which is why I am asking the question, most of the tenants that I have talked to and those that were able to communicate or that I have been able to personally chat with, there is a lot I could not get a hold of, or never returned a call. But my understanding was the tenants realized that this was a month -to -month arrangement in this case with the landlord. Mr. Kruse: That was made clear only after Alan Smith had left Grove Farm in 2006 or 2007. Mr. Chang: So let us go to the adult life thereafter, would you consider Grove Farm to have been a good landlord? Mr. Kruse: Prior to Alan Smith leaving, yes. Prior to the purchase of Grove Farm by Steve Case, yes. Mr. Chang: So I hate to use the developer Peter Savio, but if you are doing lots for $100,000.00 per the lot regardless of the size, did he ever quote you folks what a complete package would be as far as a house and lot? Mr. Kruse: Based on the model of Poamoho Camp which is a successful transition from plantation owned to resident owned, the people there were able to purchase their homes at an affordable rate of $95,000.00. Some of the lots were appraised at $220,000.00. They were able to secure that at roughly half of that price. So based off of that model, the Koloa Camp situation was a perfect translation and a way to make that model work again in a different environment. A written proposal was submitted to Grove Farm on February 28, but nothing was communicated with Grove Farm about having received it, having looked over it. Mr. Chang: So some of the homes at Poamoho Camp started at about $95,000.00? Mr. Kruse: I believe they had a ninety -eight percent (98 %) purchase rate from all the people in the camp. These were all people who were seniors on fixed income, and the qualifications... some people were not even able to qualify, and within that structure, people from within the surrounding community came together to offer them a way to purchase. It was a very successful project, which is why Peter Savio came so highly recommended, which is why Peter Savio is offered in this. It creates a very valuable situation which is reasonable and not only possible, but it has been done, which is why it is so important to address that. Mr. Chang: Vice Chair, no further questions. COUNCIL MEETING 21 MARCH 14, 2012 Ms. Yukimura: Other questions? Go ahead, Chair. Chair Furfaro: Are there any first time Councilmembers that want to pose any questions to Kepa? No. Then I will go a second round. Is that you Mr. Bynum? Mr. Bynum: Earlier you said you wanted to present at the end, is that because you want to be able to respond to any testimony from Grove Farm or the County Attorney? Mr. Kruse: Over the last four (4) months I have done extensive research in the history of this land and the people, and any gaps that may potentially exist from our testimony from people who are willing to submit, I just wanted to have a chance to fill -in whatever gaps or answer any questions that the Council may have regarding testimony that happens after me. It is not necessarily to have the last word, all I want to do is... my goal here is to inform. Mr. Bynum: Thank you. Mr. Kruse: Thank you. Chair Furfaro: Vice Chair. Ms. Yukimura: Thank you. I guess it is hard for people to understand what kind of stress the community has been going through, and people want to stay but they think that maybe the only way that they will have a place to stay if they are kicked out is to work with Grove Farm. Can you maybe share with us what the community is going through? Mr. Kruse: Sure. On November 8 when the eviction notices were issued, at the time two (2) weeks to Thanksgiving, holiday season, Christmas, these people are thinking about where are they going to live, not where are they going to put their Christmas trees. These people are thinking about where is my granddaughter going to grow up? Is my granddaughter going to have to grow up in Pa'anau? Is my granddaughter going to have to grow up in Kekaha? Are we going to have to apply for Hawaiian Homelands? A community like Koloa Camp is filled with mostly seniors. I can read you the names and the ages of these people, these are people who deserve the utmost respect: John Kruse, 68; Joey Pajela, 66; John Patt, 65; Katherine Fernandez, 82; Eric Medeiros, 57; Doreen Jacintho, 60; Kenny Berwinkle, 72; these are just a few of the oldest members of the camp. It is filled with predominantly seniors, people who have been raised in that Koloa Plantation lifestyle, and have spent their holiday season worrying about where they are going to live. I do not think that is a very respectful thing for a company to do, given that it prides itself as a kama'aina company that works with the people. That COUNCIL MEETING 22 MARCH 14, 2012 was part of the catalyst which got me so involved with this because I am here to represent the people that cannot be here. I am here to represent Mrs. Fernandez, who is now living in Kekaha because her family pulled her out of Koloa Camp, for fear that something may happen. She does not want to go to Pa'anau; she stated that many times. But yet Grove Farm insists that she go to Pa'anau. Ms. Yukimura: Are the families willing, do they know that there is going to be some change, and that there may be some higher prices to pay, and that they are going to try to figure out how to do this? They are not just asking to keep renting at month -to -month at a low rent are they? Mr. Kruse: Change is very apparent. It is obvious that after resolution, whatever the outcome, change is going to be in the air. Living in this plantation camp, some of the homes are one hundred -fifty (150) years old. It is obvious that restoration is possible, it is obvious that new homes will need to be built in order to support this community. I feel like Koloa Camp is part of the living history of Hawai`i and it is worth saving, it is an elder, it is a one - hundred (100) year old elder which deserves respect. You know they say out with the old in with the new, I do not think that is a very respectful way to approach this issue. Ms. Yukimura: Mr. Kruse: Thank you. Thank you. Chair Furfaro: Any other questions before I call up the next speaker? Thank you very much for your testimony. Mr. Kruse: Thank you, Chair, for giving me adequate time and extra time to address these issues. Chair Furfaro: You are more than welcome. Our next speaker? JOHN PATT, KOLOA CAMP RESIDENT: I am John Patt. I want to thank you Councilmembers for giving me the chance to speak and for considering this resolution. I am a taxpayer and a commercial and residential tenant of Grove Farm for twenty -four (24) years, and I urge you to support Resolution No. 2012 -29. This resolution is not telling Grove Farm to give up its rights, it is simply asking Grove Farm to perform its due diligence and to work with the tenants for a win -win option for Waihohonu and for K5loa. COUNCIL MEETING 23 MARCH 14, 2012 I want to talk a little bit about property rights. The rationale for property rights is promote order and therefore the common good. In our culture we believe that the common good is achieved by the individual's decision and use for their property. But those rights are not absolute, they are tempered by law such as zoning and building requirements, and furthermore, they are dynamic. FEMA for example is now placing more stringent requirements on housing built in flood zones. So the landowner's rights are attenuated when they conflict with the rights of the taxpayers. Rights are one side of the coin, responsibility is the other. Responsibility is magnified when the landowner has extensive holdings. I will give you an example — a child who is riding recklessly a bike down the street is a danger to himself, to pedestrians, to motorists, but compare that with a semi - tractor trailer that has lost its breaks and is coming through Knudsen gap, the potential for damage is that much greater, so is the situation with a large landowner. When the large landowner does not adequately plan, the consequences to the community and to the taxpayer are proportionately greater. This resolution is not asking Grove Farm to forego its rights but the community and the taxpayers have an interest in Waihohonu because it reduces what I call the practical affordable housing inventory, what we call real affordable housing, the affordable housing that people who write their checks and checkbooks, who punch time clocks, that is the affordable housing. This housing inventory is potentially being reduced by Waihohonu. The reason is, Waihohonu has not been well planned and does not have a clear path to completion. In less than four (4) months we have heard Grove Farm propose three (3) different access routes to Waihohonu. This means they have not done their due diligence, it changes about every five (5) weeks. The most recent access is going to require permission to enter the project through the bypass. Chair Furfaro: John, just hold on a second, that is the first three (3) minutes, am I to understand that you are a tenant? Mr. Patt: Chair Furfaro: I am a tenant, sir. You have an additional three (3) minutes. Mr. Patt: Thank you. Grove Farm is still insisting on evicting its Koloa Camp tenants before it has even submitted plans to the County. Waihohonu will not be built without FEMA approval, at least the latter of the map revision. Due to the volume of fill required for the flood zone that fill will require hundreds of dump trucks rumbling through Koloa and you can guarantee there will be local opposition to that. Approval for each of these projects, each of these aspects, will take time and they never come to fruition. This is why Grove Farm and Koloa Camp can use this time to try and work out a win -win. What harm will come to Grove Farm for halting the evictions and seeking a win -win with Koloa Camp as COUNCIL MEETING 24 MARCH 14, 2012 part of their due diligence? What harm is there in more thorough in win -win planning? Approval of the resolution will be a major step in securing that win -win for Grove Farm, for Koloa Camp, for Koloa, and for Kauai. Chair Furfaro: John, thank you. Just for some clarification for me, that was your second three (3) minutes, you are a commercial tenant? Mr. Patt: A commercial and residential. So I rent the old Japanese School Building, and we use some portions of it for our commercial business which is Pohaku Tees, and a portion of it for living purposes. Chair Furfaro: I understand that now, thank you. Members, questions for John? Mr. Chang followed by Councilmember Nakamura. Mr. Chang: Thank you Mr. Patt for being here. How many years have you been a tenant of Koloa Camp? Mr. Patt: Twenty -four (24). Mr. Chang: So was it always your understanding that it has been a month -to -month arrangement? Mr. Patt: I have twice been on five (5) year arrangements; it has been month -to -month since around 2008. We secured a five (5) year lease in 2003, so it has been month -to -month since then, and yes I have been aware that it is month -to- month. Mr. Chang: So were you aware that somewhere down the pipe this day might be inevitable that... Mr. Patt: No, not really. The reason is, Grove Farm owns forty thousand (40,000) acres, we were a back water, there had been no indication of why are they going to use this or what. So it came out of the blue. Mr. Chang: So within your rental that you are renting you are also doing commercial business there? Mr. Patt: Yes and it is part of my lease. Mr. Chang: So are you subleasing any part of that? Mr. Patt: I do have one (1) tenant there. COUNCIL MEETING 25 MARCH 14, 2012 Mr. Chang: So is that part of the arrangement that you can sublease a part of that? Mr. Patt: I cannot say if it is in the lease or not. I have made handshake agreements with Mark Hubbard... this actually kind of evolved, a friend needed a place to stay and we put him up, and it turns out that his housing fell through, and so we said we have a spare room with an extra thing, and we do have commercial privileges so that is what we did; it was an extension of the commercial privileges. Mr. Chang: So in addition to your commercial space and your home, you are subleasing a tenant that they can rent a portion of your house? Mr. Patt: entrance. Yes. It is one (1) room, he has a separate Mr. Chang: Okay. Because the true spirit of a camp and we are calling it Koloa Camp, I am not really sure where camps were or did we just name it Koloa Camp, or maybe someone could have said Grove Farm affordable housing rentals at one (1) time, but in the true spirit of a camp, now hearing that there is commercial activity going on in the camp, and now a tenant in your case needs a place to stay, but then you are subleasing out to somebody else, how long has that arrangement been going on? Mr. Patt: Mr. Chang: The commercial or the tenant? Maybe both. Mr. Patt: I originally leased commercial, that is how I began, this school building was the Salvation Army Thrift Store so it has had commercial... and then what happened is then we got permission to use it as residential in addition. So it has historically been commercial use. Mr. Chang: And in reference to subleasing to another tenant? Mr. Patt: What simply happened, he lost his home, he asked us if he could stay for, it was supposed to be a few months while he secured another home, that other home fell through, and we said alright we are not using this space, we will rent it to you. It is very affordable, and it is very small, and it is very funky to be honest. But it is a home for a senior citizen who is not able to drive, he has access to shopping, he has access to services, he can walk to where he has to go. COUNCIL MEETING 26 MARCH 14, 2012 Mr. Chang: And so would you say in the past twenty -four (24) years the rent has been very affordable for yourself? Mr. Patt: The rent has been affordable, very affordable, but the arrangement is we do all the repairs. I climb up on my roof with a fifteen foot (15') fall and put panels up there, I am the guy who cuts the floor out and puts new flooring in, I am the guy who fixes the plumbing when the pipe breaks. So I do all the repairs, the last repairs with one (1) exception was Iniki, and that exception was piping another landowner's property, and I did not have access to that as a tenant, so Grove Farm had to fix that piping. But the rest of it I do. Mr. Chang: So can I ask what you pay for rent? Mr. Patt: I pay with tax or without? Mr. Chang: You mentioned you are a taxpayer, so I am going to say with taxes. Mr. Patt: $911.00. Mr. Chang: So you got a house, you got a commercial space, you got a tenant, and you pay a little over $911.00 Mr. Patt: Yes. Mr. Chang: For quite some time? Mr. Patt: Yes. Mr. Chang: So I guess it would be pretty fair to say that a place that you have could rent for $1,500.00, it could run for $2,000.00? Mr. Patt: No. To be honest not that place, not that place. There are probably, Kepa has been up in our roof, how many pukas are up there, probably twenty (20) pukas in the roof. We have portions of floor that are rotted out, I mean I should be fixing the roof instead of fighting Grove Farm, to be honest. Mr. Chang: And that would be a classic camp, a plantation camp if you will. Mr. Patt: Yes. Well there is a historical connection. This was a Japanese language school building, it historically connects, you know where the social hall is? COUNCIL MEETING 27 MARCH 14, 2012 Mr. Chang: Yes. Mr. Patt: The Hongwanji Temple that burned down, the early school was martial arts, and then it was Japanese Camp C behind there; this is all connected, it is all a part of the same history. Mr. Chang: Okay. And the point that I am making I guess, is that as many have mentioned even up to today, probably as we speak, we are constantly getting testimonies, and you mention having a nice friendly handshake at that time with Mark Hubbard I think way back when that is what it was. Prior to lawsuits, prior to paperwork it was like right on, aloha, and what have you. So I just wanted to get that. Did I ask you a question? Did you think they are good tenants (sic) or are good tenants (sic) up until these trying times? I beg your pardon, landlord. Mr. Patt: A good landlord? Yes, they were a good landlord, especially with Mark Hubbard and Allan Smith. I have since had to butt heads with them sometimes, but we are trying to work things the best we can. Mr. Chang: Okay thank you, Mr. Patt, thank you, Chair. Mr. Patt: You are welcome. Chair Furfaro: Thank you. Councilmember Nakamura you have the floor, followed by Mr. Rapozo. Ms. Nakamura: Thank you for being here Mr. Patt. Mr. Patt: Thank you. Ms. Nakamura: I have a question about your request to halt the eviction or termination. How long, in your opinion, what is a reasonable time to halt the termination? Mr. Patt: Well it is hard to say, but if Grove Farm does not have their permits, why not collect the rents for one thing, it is to their business advantage to collect the rents, and why not give us time to work things out? Ms. Nakamura: So until they receive their building permit is that what you are saying? Mr. Patt: Well that is one (1) way of putting them. But I would personally prefer to do this as quickly as possible. I do not think we should COUNCIL MEETING 28 MARCH 14, 2012 sit and there, well we have time, let us deal with this and try to get it solved. So I would try to make every effort to be as expeditious as possible with this. But if you have to put a bracket on, the permits is for sure. Ms. Nakamura: Okay. Thank you. Mr. Patt: You are welcome. Chair Furfaro: Mr. Rapozo you have the floor. Mr. Rapozo: Thank you. John, are you the only commercial tenant in that Camp? Mr. Patt: The Koloa Early School is also a commercial tenant and they are on the same parcel. There are technically two (2) different parcels here we are talking about, the Koloa Camp proper is 0000 and we are 0053, but both of those parcels would be evicted and ordered to build Waihohonu; they are adjacent parcels. It is like a dog leg and we are in the small part of the... Mr. Rapozo: Your commercial lease has been going on for twenty -four (24) years as well? Mr. Patt: It began commercial, it started commercial and it became residential in 1999. It became residential /commercial in 1999. Mr. Rapozo: So you mentioned the Salvation Army, you moved in after the Salvation Army moved out? Mr. Patt: I rented a small portion of the building while the Salvation Army was still there so they were my neighbors, they were my co- tenants. And then when they moved out then I took over the entire building. Mr. Rapozo: And you mentioned to Councilmember Chang that you sublease the commercial portion or the residential, your home? Mr. Patt: It is a commercial portion. It is a room, it is somewhat arbitrary, it is a room with a separate entrance. A separate room... Mr. Rapozo: Is it two (2) separate buildings? Mr. Patt: No, one (1) building. Mr. Rapozo: So you live in the building that you have your business in? COUNCIL MEETING 29 MARCH 14, 2012 Mr. Patt: Yes. But there is different rooms and different doors and different accesses. Mr. Rapozo: And you have separate leases? Mr. Patt: No. One (1) lease. Mr. Rapozo: Okay. Mr. Patt: But the portion that I sublet is down one (1) end, it is a room that was added on at one (1) end and the tenant has his own separate entrance. Mr. Rapozo: So it is one (1) building that houses your residence, you live in the building? Mr. Patt: Yes. Mr. Rapozo: And then there is your, what do you do? Pohaku Tees you said? Mr. Patt: Yes. So I use a portion of it for my design studio for our office, we use extensive parts of the building for warehousing, warehousing probably takes up the most space, and then we use the small part for where we basically have a kitchen and a bedroom. The rest of it, most of it, is for commercial space because there is very little storage space in our store, so we store everything at the school building. Mr. Rapozo: The school building is separate though? Mr. Patt: talking about. Mr. Rapozo: Okay. No. The school building is the building I am Mr. Rapozo: So what is the Koloa Early School that you were talking about? Is that another... Mr. Patt: Koloa Early School is a separate entity, it is a separate tenant. They do not rent a building, they rent yard space. Mr. Patt: They are a land tenant not a building tenant. COUNCIL MEETING 30 MARCH 14, 2012 Mr. Rapozo: Okay. Thank you. Mr. Patt: You are welcome. Chair Furfaro: Vice Chair Yukimura. Ms. Yukimura: About the Early Learning? Mr. Patt: K6loa Early School. Ms. Yukimura: Koloa Early School, you say they rent a yard but in fact is it not their actual fenced in play ground for the early school? Mr. Patt: That is correct. Ms. Yukimura: So if they do not have that as their play area where are they going to do... Mr. Patt: Right now the yard is actually a pretty protected area, it is behind the school, there is very limited vehicular access there, they will have to move that playground to the front. I do not know if they are going to be able to get the same size. Size is a concern for the yard because Federal requirements require so many square feet of playground per child. So if they cannot get the same square footage then they are going to have to reduce the number of students which is going to reduce their income. It is also going to put their playground in the yard. If you know where the bon dance had been held in Koloa, right in that yard where people from Big Save come in and park, people from all over the place, people who use the social hall come and park, so there is going to be a lot more traffic there. You are either going to fence it in, plus transiting in and out is going to be a lot less safe for those children. Ms. Yukimura: Thank you. Mr. Patt: You are welcome. Chair Furfaro: Is there anyone else that would wish to speak for the first time? Mr. Kuali`i did you have any questions, you have not spoken yet. No. Mr. Bynum, no. I have a question for John. We are dealing with eight (8) tenants within this twelve acre parcel, does the eight (8) include your tenant or is that plus your tenant? Mr. Patt: The eight (8) includes me. I suspect, I think the eight (8) does not include my tenant. COUNCIL MEETING 31 MARCH 14, 2012 Chair Furfaro: Okay. Thank you. Mr. Patt: You are welcome. Chair Furfaro: Mr. Chang you have the floor. Mr. Chang: Thank you Chairman. Mr. Patt, that was one (1) of my concerns was the playground, that was one (1) of the first things that I was very interested in. In the realm of smart growth if you will, the access around where you are at and Koloa School, being able to walk to a bank or to shopping centers as you know, a floral store, a wine shop, as you know and you are very familiar with... Mr. Patt: Fish Market. Mr. Chang: Yes. That was very, very, very much of a concern for me, but I do not know if you recently talked to the developer because that was one (1) of my big questions, because I was concerned for the playground and maybe when they come up. From my understanding, the whole module shifted a bit in which case the early school will not be deterred from that playground that exists a safe distance away. Mr. Patt: This I do not know but I am going to say again I have not heard this. Grove Farm's plan keeps changing. If they are not going to do that then it has changed again and this is what the point I made with the access road, they have changed it three (3) times. Now they are changing this, now they are going to go to the Planning Department and how many times are they going to change it? The only thing they are certain about is: let us kick the tenants out. That is the only thing that they are certain about, everything else is in flux. Let us resolve... get the plan, Grove Farm should do their due diligence, they are a large land corporation and they owe the community and the taxpayer due diligence, and then deal with the tenants. Mr. Chang: I understand. And yourself personally, are you a landlord? Do you own property and rent property out? Mr. Patt: Yes. Mr. Chang: So you have a house or a condo? Mr. Patt: No, two (2) condos. Mr. Chang: So if you all of sudden decided to put your condo up for sale, and you had long -term tenants, or you had an agreement that it COUNCIL MEETING 32 MARCH 14, 2012 was month -to- month, what kind of recommendation would you give us if you needed to sell your condo? What arrangements would you give to your tenant to say that in one (1) month, in three (3) months, in four (4) months, sorry but I am about ready to sell, you have to get out? Mr. Patt: I would try to give them as much advance notice as I could. If I had to sell, I had to sell, but the difference is I would be impacting one (1) tenant versus impacting a whole community. The scale of magnitude is the difference here, and I would not like having to do that. I would at least try to, if they say hey I need more time, I would try to work with them the best I could. Now we are talking a hypothetical situation, if the taxman coming down on me I might have to be nasty, but if I have latitude, if I have got forty thousand (40,000) acres and the time, because I still have my permits to go through, yes, I would give them every consideration I can. That is part of aloha, that is part of Kaua`i. Mr. Chang: And I understand that and that is the problem I think I am struggling with is it is a landlord- tenant issue and all given the fact if your tenant was eighty -two (82), or one (1) of the tenants was sixty -eight (68), it is almost like a situation of similar, or it could be construed as similar sympathies. Mr. Patt: To be honest I really hope, I really hope that if I had an eighty -two (82) year old tenant that I would jump through hoops to try to keep them in there. It is a hypothetical situation, but I really hope, and I would be very disappointed in myself if I failed to do that. Mr. Chang: Thank you. Mr. Patt: You are welcome. Chair Furfaro: John if we have (inaudible). Mr. Patt: Chair Furfaro: Thank you. I am going to call the next speaker. Mr. Topenio: Next speaker Mr. Chair is Amber Alimbogoyuen followed by Phoebe Eng. AMBER ALIMBOGUYUEN, RESIDENT: I am here for Koloa Camp. The reason why I am here and speaking is because my grandmother had to go through the issue, not exactly the same, but we did have a plantation house, we are in a flood zone, and what happened was we had to buy the lot that was underneath us for about $6,000.00 during Hurricane Iniki. She is about eighty -two (82) years old or COUNCIL MEETING 33 MARCH 14, 2012 eighty (80) years old, and the house that is built now I had chosen to have one (1) story rather than a two (2) story. There was issues during the time that we had to build the house because we wanted to be able to afford it during that economy of the Iniki and that (inaudible) that we were in the middle of nowhere of ocean, and to get work, this is a woman. Not only that but my mom was a single mother, so now we have a great - grandmother, a grandmother, a mother, and a child in the house, so I can help to provide for my grandmother. It is not an affordable housing when you have to rebuild for an elderly and my uncle is a (inaudible: semi - captain) which is John Kruse, so I know in the future the cost will rise especially because you have to deal with medical and the rising cost of electricity, and especially the property taxes. I was part of the landlord issue with the house, because my grandfather groomed me to know carpentry, maintenance, so I maintained the house throughout their life and I am thirty (30). So I know what boys can do yard work, carpentry, and plumbing, and all of that. But my grandmother thinks she needs to go elsewhere because the price has rised for everyone because they want more money to make their living. It is not affordable when you have to rebuild a house even if it is $60,000.00 or $90,000.00, it is still a lot for them. And for the women that had to move out, my uncles are trying to convince my grandmother, like evicting her, to move out from the house so that they can take care of her because it is safe, but the community she lives in and the people that have moved in, like John is a new resident there. Even if it is for twenty (20) years she feels safe around them, she does not want to leave. So even if she left, the intent was not from her it was from their landlord which is my uncles (inaudible) to the house because now her name is on it because my grandfather passed away, I still have to take care of her, I am still the landlord. I do not want her to move out. That is the same thing with my uncle, I do not want him to move out and now there is two (2) generations in his house, and yes, it is Kepa's house as well, but you learn to value it and you take care and you maintain it, it becomes yours. It is a month -to- month, and they did have to learn about that in the past few years but I think it was abrupt that they had learned that they have to move out and get evicted. It takes time, it takes planning and processing to get to that point, so it would have been nicer if they knew way ahead before just getting one hundred - twenty (120) days eviction. There was planning way before that. That is what I wanted to share. Thank you. Chair Furfaro: Thank you. The next speaker was? PHOEBE ENG, WAIMEA RESIDENT: I am in support of this resolution. I thank our Councilmembers for lifting us up into a conversation where we can really prove what Kaua`i as a community is. This resolution poses a simple ask to the Council. It merely allows the Council to show its moral leadership. The question before each of you is how much are you willing to stand on the side of humanity and the Kaua`i people and the preservation of Hawaiian lifestyle? How willing are you to guide us, your constituents toward a culture that prioritizes human life above bottom line and deadline driven reasoning where intangibles such COUNCIL MEETING 34 MARCH 14, 2012 as culture, `ohana, aloha, and love are not and cannot be quantified? This resolution does not involve or mandate involvement of the Council in landlord- tenant issues, it merely opens communication channels so that we do not descend into legal battles that are expensive and time consuming for all parties and that are undesirable by all. By the way, Councilmember Chang, with all due respect, many leases are month -to -month tenancies. They often continue for many years and many decades with respectful workout between landlord and tenant, but thank you for bringing up that point; it is an important one (1). Eviction seems to be too brutal a hammer to send a message that merely says by a developer that we want to build affordable homes. There are better ways that do not punish people by forcing them to leave because they happen to inhabit the only parcel currently zoned residential. Our Koloa Camp `ohana is more than a convenient building zone. If zoning changes are needed then let us work together to change them, let us work through those timelines, let us work through those cost issues and change them together. Also Councilmember Chang, I also feel that as we focus more and more on the substantive issue of adjudicating the merits of month -to -month and all these things that are involved in the landlord tenant code, that we are actually in fact involving the Council more and more in advocacy on those issues. So I hope instead let us honor the spirit of the resolution that says let them work that out together. I would also like to address Councilmember Rapozo's concern, good morning Councilmember, regarding the resolution clause on citing a specific developer. I feel the overall intention is what we have to measure today. So Councilmember, if you are in favor of the spirit of this resolution, then please do use your efforts, your full and wholehearted efforts, right now to align this clause. Use your efforts, look at the wording and know for instance by reading it word for word that it is not in any way binding on the Council. Look what it says, be it for the resolved that the Council requests the Mayor and his Administration and Grove Farm to provide appropriate assistance to Peter Savio... Chair Furfaro: May I interrupt you for a second? That was your first three (3) minutes and I will give you a little bit to summarize. Thank you. Ms. Eng: Okay. Appropriate leaves you a lot of leeway. If appropriate means there is no appropriate assistance then that is fine and it is also very very easy to change this language as Kepa had said to include other developers quickly. This resolution is reasonable, it is a low level ask that puts each our hearts right on the line. We are Kaua`i, we are special, and we need not bow our heads so quickly to last century bottom line that has no room for heart. Thank you. Chair Furfaro: Phoebe, we have questions posed to you. Mr. Rapozo. Mr. Rapozo: Thank you. Thank you for your commentary. I do have a proposed amendment because I do support the spirit of this resolution. I COUNCIL MEETING 35 MARCH 14, 2012 am not going to overstep my legal boundary as a Councilmember and do what I believe is illegal, I am not going to do that. So you may not be satisfied with my amendment but I can tell you that it does capture the spirit of what I think we are all trying to do which is reach a resolution. I do want to ask you a question because you referenced the month -to- month, and I agree, I myself got evicted out of my business space a few years ago, and I will say it, from Shell Oil. They gave me thirty (30) days. I wish the Council would have come up and said hey Shell Oil stop your eviction of Mel Rapozo because he is a small business owner, he is part of the backbone of small business, but I did not expect that because I think that is a private issue. I think the philosophy is a good thing, that thirty (30) days I ended up having to get an attorney to get it extended for ninety (90) days and then one hundred twenty (120). But you mentioned something that I wholeheartedly agree speaking to the guy that was the advocate to save Kapaia Bridge Swinging Bridge because of its cultural historical value, because of its tie to the community and the plantation. We did not get much support of that. In fact, people said that was too much money to preserve culture. But I do not think the culture, and again a lot of the testimony we are receiving is brand new. I am surprised to hear about the commercial leases and subleases; that is not the plantation camp culture. Would you agree? Ms. Eng: Would I agree with? Mr. Rapozo: Would you agree that in fact when you look back at the culture of our plantation camps, it was not set -up to have businesses in the camp and then to sublease; it was to house the camp workers. I am asking yes or no. Ms. Eng: Yes, these are questions that further discussion between the parties will be able to work out. Mr. Rapozo: I guess I am trying to understand your, because you referenced the culture, and I agree I think we need to preserve whatever we have because once it is gone, it is gone. I am kind of concerned when I hear that we have commercial leases going on in these camps. Ms. Eng: Right. This would be a discussion, I feel. This would be a discussion that needs the kind of work out that this resolution provides. I will also say, Councilmember, that if there were a strong community, I wish that you would have had a community behind you to fight on your month -to -month lease with Shell. So this is the kind of thing when you talk about plantation culture. What was developed at the Koloa Camp is `ohana, it is sticking up for one (1) another, it is finding ways forward, and yes there is a lot of back and forth. The land is used in all kinds of ways that support life, that support family, that support sustainable and perpetual ways of living together. So those are the kinds of things COUNCIL MEETING 36 MARCH 14, 2012 that I would hope that we can honor both the tenants, the longterm multi - generational family tenants to work out with Grove Farm which is what this resolution asks for. Mr. Rapozo: Well it does and it asks for a whole lot more, I think, that we must be cautious as Councilmembers, because I will say that there is a, and I did my own research and the Manoa Neighborhood Board got involved with a landlord- tenant issue and in fact were warned that they would be on their own if they acted outside of the scope of their duties. There is also a Supreme Court case where it was the State Legislature though in fact tried to pass a land, and granted this is a resolution, but I think people need to understand that a resolution, although not enforceable and it is not a mandate, it does carry weight and it does create an influence. So I think we need to understand that, it is not just a suggestion. Resolutions are intended to convey the policy of the entire Council. But if you look at that HRPT versus Lingle, and I am not going to read it, but I am just saying that the Supreme Court ruled that hey Legislature you stay out of private landlord- tenant disputes. I think we need to be cautious of that and there is a line that we can move up to to encourage, but I think there comes a point where we need to say hey we want to see the win -win, of course we want to see the plantation camp preserved. But I think we have to do it in a way that is within our legal parameters as I have stated earlier, because I do not want to see the County, including you as the taxpayer, to get sued because of undue influence and undue attempts by the legislative body to get involved in a private matter. That is my concern. I appreciate your testimony. Ms. Eng: Did you have a question? Mr. Rapozo: My question was about the commercial and residential, do you believe that is part of the cultural make -up of a plantation camp? I do not believe it is, I will tell you right now. My grandparents, my parents, we are all plantation camp people. I think most of us, anybody that was born here or have been here for any length of time, originated out of a plantation camp. Ms. Eng: So when families give each other food and eggs and share things that are outside of the money system, but when they start to move into a culture that is being talked about here, it is very hard to transition from a barter `ohana driven trade system where you give out of love and you receive out of love, into a system where people are just trying to move into another way of life and they are going to bump up against this. These are big questions as the transitions. Chair Furfaro: Your three (3) minutes has expired. If Mr. Rapozo would like to pose you a question, I will let you add dialogue. COUNCIL MEETING 37 MARCH 14, 2012 Mr. Rapozo: The only other question, Mr. Chair, is if you have your testimony? I do not believe if I saw yours in all those that I have read. time. Ms. Eng: I can type it up. Mr. Rapozo: Okay. Or you can send it to me at a later Ms. Eng: Okay. Mr. Rapozo: Thank you very much. Ms. Eng: Thank you. Mr. Rapozo: Thank you Mr. Chair. Chair Furfaro: Phoebe, thank you very much. To the audience, I am going to take a ten minute break at this time, but I do want to announce to those who might have come in earlier, my intention is going to be to continue with testimony from the public, then have an opportunity to hear from Grove Farm, and then hear from our legal counsel. We are going to take a caption break right now before we put you on the live mic. Ten (10) minutes, it will just be ten (10) minutes please. There being no objections, the meeting recessed at 11:27 a.m., reconvened at 11:40 a.m., and proceeded as follows: (Mr. Bynum was noted as excused.) Chair Furfaro: We are back in session from recess. There being no objections, the rules were suspended. Chair Furfaro: Marty you have the floor. MARTY KUALA, RESIDENT: (Inaudible) across from the proposed Koloa Camp development for thirty -two (32) years. I urge you to vote yes on Resolution No. 2012 -29. I understand private property rights and landlord- tenants relationships, in fact I am a landlord. But the situation in Koloa goes beyond rights and relationships and it has a good chance of being resolved to the satisfaction and benefit of all parties. In addition, eviction of the tenants is very premature at this time since Grove Farm does not have a plan before the County. The Koloa Camp site plan has many problems to overcome such as excess traffic on Wailani Road, plus their plans to add extensive fill to bring the camp to above flood level which COUNCIL MEETING 38 MARCH 14, 2012 could cause potential term flooding on any road, the Koloa Ball Park soccer field, and the tennis courts. If the site cannot be approved by the County, thirteen (13) families would have been needlessly left homeless. It seems sensible to delay evictions at least until the project has been deemed feasible and permits are being issued. Do you have any questions regarding my testimony? Chair Furfaro: Any questions for the testifier? If not, I thank you very much. Ms. Kuala: Thank you very much for your comments and for listening to my comments. I do have a letter from Louie Abrams, the President of Koloa Community Association. Would you like me to read that to you now? Chair Furfaro: Because he is the President of the K5loa Community Association I will allow you to read his testimony. It is not typically that I have other people do testimony for people that are absent, but because this is a Koloa issue and he is the President, I will let you read that testimony. Ms. Kuala: Mahalo Jay. Councilmembers, we do appreciate you taking the time to consider testimony to the proposed resolution drafted by Councilmembers Yukimura and Kuali`i. Kepa Kruse proposed an innovative solution to this emotional situation in his testimony to Hawai`i Senators on February 28 for Resolution SR -19. He proposed to extend the R6 zoning to the remainder of the parcel that is separated by the bypass road. We support this solution, and if it manifests itself, see it offers a possible solution. I attach this testimony for your reference. I have it here. Koloa Community Association supports and will get involved in supporting the proposal to up -zone the adjacent Grove Farm property from ag to R6 because it is a logical place to have an additional affordable housing, and if the parties agree, Grove Farm and K5loa Camp tenants and our County Administration and Council will support this change, this is a win -win situation for all. We are of the opinion that this type of proposal will address the economic incentive Grove Farm would view as attractive enough to consider seriously, which then would provide the tenants time to work with Peter Savio in crafting a purchase agreement that pays Grove Farm a fair market value on its property. We also are of the opinion that Grove Farm will need to hear from the Council and Administration that they are committed to pursuing this up- zoning for additional affordable housing before they make a decision to take the time and additional risk. Chair Furfaro: Ms. Kuala: Thank you very much. Would you like a copy of this? COUNCIL MEETING 39 MARCH 14, 2012 Chair Furfaro: Yes I would. Scott, could we collect that copy of the testimony? May I ask, is there any questions regarding Mr. Abrams testimony? Thank you very much. Again I am looking for people who have not signed up to testify; as we are moving forward, this is my third request. You can sign up at the podium and the next order who do we have please? CRAIG CONTRADES, RESIDENT: There is something disturbing about this resolution. I just do not see how this is any business of the legislative or administrative bodies of our County. We have a lot of double speak going on here. There is talk about a non - binding resolution and yet much of the testimony is talking about what the Council will do even in this non - binding resolution. Mr. Chairman, you talked about bringing in the County Attorney. I do not think there is a lot of wisdom in putting the County at this kind of risk, it is excessive litigation as we all know and I do not see how this is valid. My grandfather ran the Kapa'a Cannery, my father grew up in the plantations, I used to spend my summers in Makaweli Camp with my cousin, none of my friends that I grew up with were not touched directly with the plantation life, and it's pretty much gone. That is a sad thing. The remnants in Koloa Camp or the people remaining there are not involved in the Plantation, not directly, except for one (1). I get what is going on here, this is politics, I get that. But how many people have lost their homes in just the last few years during this economic downturn? Are we going to intervene for them too? There is a mortgage crisis going on. When we use words like just and equitable, the insinuation is that the present course of action is not just and equitable, that is basically what you are saying because you are searching for one (1) that is, insinuating that the one (1) that exists is not. How many landowners are actively involved after evicting their tenants in seeking out living conditions for their prior tenants? Is the Council going to decide and pass a resolution deeming what is best or in the best interest of not just the people involved but also in Grove Farm's daily operations? If Grove Farm makes a mal- investment, is the Council going to intervene? If they build these homes, is the Council going to intervene and help out Grove Farm? Lots of people are losing their homes. I understand the sentiments, this is a very emotional thing and lots of people are losing their homes, but I do not see how this is the kuleana of this particular legislative body to pass resolutions, although non - binding, intervening in the operational affairs of a private landowner. Mr. Topenio: Three (3) minutes Mr. Chair. Chair Furfaro: You can summarize if you would like. Mr. Contrades: I just did. Chair Furfaro: Let me share some comments as Chairman of this Council. It has been my practice to have this Council participate in issues within our community because we are the steward. Your comments about the COUNCIL MEETING 40 MARCH 14, 2012 resolution are well received and we clearly understand that is a policy statement and we need to make sure the other media outlets have in fact understood. We have no actual jurisdiction in causing an action, but we do have an opportunity to be a vehicle for the community in facilitating any positive outcomes. It has been my practice as Chairman, when the smart meter issue came to the Council, it was a PUC issue but we provided a forum. When the Kekaha Community Action piece regarding the landfill, which is clearly an issue between the Administration and that community, we provided an opportunity for Mr. Bulatao. So I am sharing with you this is a vehicle to share dialogue. Your cautions as it relates to probable issues that could be cultivated from an action by this Council is a warning well received. Mr. Contrades: There is also a precedent like what Councilmember Rapozo mentioned. Chair Furfaro: Yes. I think I mentioned that in my original comments; I do not know if you were present. Your caution and your comments I can tell you are well received, but I do think as the stewards of this Council, when we do put things on this Council floor, it is to have open and reasonable dialogue. But again your caution is well received. Is there any other questions for Mr. Contrades? Vice Chair. Ms. Yukimura: Mr. Contrades: Hi. Ms. Yukimura: Thank you for the points you have raised because I think if they are in your mind, they are in other people's minds as well. I guess my question is do you have any relationship to Grove Farm? Mr. Contrades: Yes. I am a lessrr. I have Grove Farm property, I lease Grove Farm property. Ms. Yukimura: You lease a Grove Farm property. Are you interested in the housing that they might be building? Mr. Contrades: No. I am landowner and I am interested in fair and equitable treatment of landowners. Ms. Yukimura: I see. Mr. Contrades: So I would not want this body involving itself in my affairs if I were to have to deal with a tenant. Ms. Yukimura: Right. Hi Mr. Contrades. COUNCIL MEETING 41 MARCH 14, 2012 Mr. Contrades: However emotional that tenant might be about it. Ms. Yukimura: Alright. The thing is that this resolution is not deeming anything, it is not saying this shall be or this shall be, it is just asking the parties to sit down. Do you feel that that is wrong? Mr. Contrades: Absolutely. This is not the kuleana of a legislative body. Let me explain something. I read a little bit about how our Country was founded, separation of powers exist very clearly — judicial, legislative, and administrative. If there is an issue with that camp, I have heard about the duck or something, pass a law, allow the appropriate agency to enforce that law, and the relative powers are preserved. To use a legislative body to come up with a resolution however non - binding quote un- quote, it is I think is problematic. Where do you stop? Are you going to do this for other landowners or other tenants that are losing their homes? While I was back there I did a google search; back in November 4, 2011 there were about two hundred (200) properties on Kaua`i that were distressed. Are you going to help them? Ms. Yukimura: Yes. Mr. Contrades: Really? Ms. Yukimura: Yes. Mr. Contrades: You are going to have resolutions helping... Ms. Yukimura: There are different ways to respond to problems out in the community, some may be laws and others may be resolutions. This resolution is respecting Grove Farm's rights, it is just asking them to be who they say they are which is a triple bottom line company. So there are different ways to respond. Mr. Contrades: So that presumes that what Grove Farm has been doing is not in keeping with what you just asked for. Ms. Yukimura: What Grove Farm has been proposing is cutting people out, and we are just asking them to see if there are ways to keep people there but also achieve Grove Farm's goals as well. Mr. Contrades: Well in your (inaudible) and the record will show this, you used terms like protecting the community or just getting people out; COUNCIL MEETING 42 MARCH 14, 2012 if you look back on the record that is what you were saying. I do not think that is constructive, personally. Ms. Yukimura: Okay. Well maybe we disagree on that but thank you very much for coming to speak, we appreciate it. Mr. Contrades: You are welcome. Chair Furfaro: And I would also like to say again, I think Councilwoman's response to those two hundred (200) other distressed individuals was her opinion. The reality is we are here to serve people, and we are providing a forum. I again thank you for your cautions. Mr. Rapozo did you have a question? Mr. Rapozo: No. Chair Furfaro: Thank you very much for your testimony. Mr. Contrades: Thank you. Chair Furfaro: Next speaker. JOHN KRUSE, KOLOA CAMP RESIDENT: Aloha Council Chairman and Councilmembers. For the record my name is John Kruse, I am a tenant, I live in Grove Farm Camp called Japanese Camp. Chair Furfaro: John since you are a tenant, please make a note that we will give him six (6) minutes speaking time. Go ahead John. Mr. J. Kruse: Thanks. For all of you to take the...I work for the County of Kaua`i in the Real Property Division, I wanted to tell you I took vacation today to come to this body so there will be no impropriety. I am speaking because we have lived there, Kepa was born there, my son, my wife passed away in 1994. I wrote two (2) letters when November 8 I got a letter from Grove Farm to cancel our tenancy and to leave the camp in one hundred twenty (120) days. So I wrote a letter to Senator Dan Inouye and I wrote a letter to retired General Eric Shinseki. Most of the people in that camp, including myself, we are all veterans, all those families, either World War II, Korea, Vietnam, Iraq, Afghanistan. I kind of take issue with...being a veteran you serve your Country, and then I know some of you are veterans, but sometimes like when I came home from service in Vietnam, I had a couple of screws loose. I had to go to see Tripler Hospital, but I am very calm now in negative circumstances, and what we had here today, I appreciate you hearing all of our stories. The individual that just spoke, he said nobody works for Grove Farm. My great grandfather came from Brockunvesa (sp ?), sailed a whole year with his family around the horn to get to Kaua`i, it took one (1) whole year. He COUNCIL MEETING 43 MARCH 14, 2012 brought the first steam plow and he worked for Grove Farm for four (4) years to pay off the passage for his family coming. I am named after my great grandfather's brother. My son is named after me. I strongly urge you to look into your hearts, maybe that resolution has to be amended. I think sometimes we forget that when we look forward and we are going forward and times are always changing, we have to look at where we came from. I think you have the power and you have the community at heart to do whatever is the right thing. If you have any other questions I can answer, fire away. Chair Furfaro: Members, questions for Mr. Kruse? John, thank you very much. Chair Furfaro: question. them? Mr. J. Kruse: Aloha. John, Councilmember Nakamura has a Ms. Nakamura: How many homes are there now on the twelve (12) acres? Mr. J. Kruse: How many homes with people living in Ms. Nakamura:. Homes, housing structures. Mr. J. Kruse: On the real property list it says there are eighteen (18) structures in that whole enclave of the 24.275 acres, nine (9) families live there, thirteen (13) leases. Leases are by people growing vegetables, by cut flowers, by chickens, dog kennels. Ms. Nakamura: Of those eighteen (18) structures, in your opinion, how many do you think can be restored and how many are beyond restoration? It could be just your best guess. Mr. J. Kruse: All of them probably could be restored, but how do you want to restore them back to livable conditions or is that what you are trying to get at? Ms. Nakamura: Yes. Mr. J. Kruse: Well that is a hard one (1). Ms. Nakamura: Okay. COUNCIL MEETING 44 MARCH 14, 2012 Mr. J. Kruse: That building where John Patt lives, in the ceiling there was a plaque put up there in that ceiling because it was built by the Japanese workers and two (2) of the names were Muraoka and Shimanuku. This was built in 1892 for the Japanese School and I guess if you wanted to build them all to make them to look like the old plantation way you could do that. But as far as right now there are only those nine (9) families, nine (9) tenants that live in those houses. Ms. Nakamura: Okay. Thank you. Mr. J. Kruse: Chair Furfaro: Thanks. Next speaker please. JERI DIPIETRO, KOLOA RESIDENT: Aloha County Councilmembers, my name is Jeri DiPietro, I live in Koloa. Please support Resolution No. 2012 -29 calling for a solution at Koloa Camp that will explore alternatives to the preservation and restoration of these important symbols of our K5loa Town history. Not only is this a thriving, loving, and affordable housing area that grows local food, it is an area that tells the story • and trials of our proud past. There are school buildings, places of worship, the gym, many individual homes that are worth respect and restoration. This is a picture of the school house. It is a beautiful symbol as are all of the cement paths and the trails there. Once it is gone, it is gone. Koloa Camp should continue to be a true local family area. These amazing homes should be cared for on this lovely in -town parcel. Plantation camps have much to teach us about sustainability and the caring for one (1) another. This is a true community and they should not be forced to leave when options do exist for the building of additional affordable houses on other land. In the last decade Koloa has lost many historic sites; these things will never come back. I think we would all benefit to see these homes restored. This area tells so many stories and it exemplifies plantation style living. As we look to re- invent intentional communities where people live in harmony with the land and each other, Koloa Camp is a model. This is a perfectly situated in -town parcel, a walkable community, the families look out for one (1) another, they know the land, they take care of it, the children are safe to play outside, people have gardens, and established fruit trees. One (1) of the homes as I showed you in the photo is the old school house. The people who live there are long time residents. It is peaceful, it is everything you would try to recreate if you were to build a new neighborhood. While we wait to begin the Koloa- Po`ipu Plan update, we are identifying the future of our community as a whole. It is challenging to find room for complete streets and safe routes to school. Koloa Camp is a perfect fit. With Koloa and Po'ipu being the economic engine of our island, we strive to find local housing and safe routes to school and retain community in a tourist destination area. The win -win here is to retain Koloa Camp and build additional affordable housing. These tenants would like the opportunity to buy their homes. If COUNCIL MEETING 45 MARCH 14, 2012 an owner wants to sell, it is not uncommon to offer the first right of refusal to the tenant, that is just good form in landlord- tenant relations. There have been public meetings in Koloa to discuss the situation, two (2) with Grove Farm and one (1) with the Mayor; the residents facing eviction are actively pursuing all avenues. Mr. Topenio: Three (3) minutes Mr. Chair. Ms. DiPietro: I will sum up. They are pursuing all avenues of alternatives for a win -win. The State Senate voted almost unanimously to support a resolution introduced by Senator Clayton Hee to preserve Koloa Camp and a companion resolution will be heard in The House. Folks from the outer island are weighing in on this matter too. This is much more than just convenient zoning, alternatives do exist, and mahalo to the County Council for introducing this resolution. Thank you. Chair Furfaro: Any questions for the speaker? Mr. Chang. Mr. Chang: Jeri, thank you for coming. I inquired and I happened to see a list of potential buyers or those who are maybe interested, and if I am not mistaken, there is about fifty (50) or sixty (60). Do you realize that some of the existing tenants are on the top of the list as far as the first right of refusal? Ms. DiPietro: Well yes, but that is for the new homes the pre- fabricated models that have been talked about being shipped in from China. That is one (1) list, but I think the first right of refusal should be to buy their homes on the land. ahead. Mr. Chang: Okay I understand. Ms. DiPietro: These homes are all on beautiful large pieces of land, manageable, but large enough to actually have... community have gardens; there is room perhaps in the camp to add a few parcels and a few homes in. But we really think there are other alternate sites that would actually better serve a fifty (50) home neighborhood as far as ingress and egress. Mr. Chang: Okay. Thank you. Chair Furfaro: Thank you. You have a question? Go right Mr. Kuali`i: Hi Jeri, aloha and mahalo for being here. Just one (1) quick question, you mentioned the Koloa- Po`ipu Town Plan Update, and you also showed us a picture of the school house. In the existing plan, has the community identified the camp in any way, and if not, do you think that was an COUNCIL MEETING 46 MARCH 14, 2012 oversight? How much of this school house is still, from the picture you showed, is it a really old photo? Ms. DiPietro: It is a photo from, I think it is maybe taken in the 1930's, but the home is still there, it is large. The Koloa- Po`ipti Town Plan, as you know, has not formally been started yet, and I think we are now actually a little bit even more on the backburner waiting maybe for the CZO update first. But as we look at our different issues in Koloa as far as Hapa Trail circulation and access to beach and walkable sites, Koloa Camp is a good fit, it is great where it is. We do look, when we look at the maps of Koloa- Po`ipu, we do look at peoples of where will expansion go because it is inevitable. There are sites, of course this one (1) identified is something that even before this incident came up we looked at as a possible site for other affordable homes. Of course as you get closer to the ocean, values goes up, but in this area near the post office is a great place for local families, and there is not many of that in Koloa- Po`ipu. Mr. Kuali`i: You also made the point about it being a good example of it being a sustainable neighborhood and something that we should preserve as much as possible. Ms. DiPietro: Absolutely. I just came back from visiting my mom on the mainland, and I am dealing with some tenant issues over there, and there are so many cutbacks with police and fire on the mainland that, well, why do the police do not something when you see violence happening, and there is not that staffing. When I have been visiting the Koloa Camp I realized these folks look out for each other, there are no problems, they are the stewards. When we have had extreme weather or anything, it is the people that know the neighborhoods that are best suited to take care of things. We have programs in place now to train folks on neighborhood watches and things. This is an ideal situation that is organic; these folks know each other, there is total trust, and safety. God bless the child who has his own. These folks take care of themselves. Mr. Kuali`i: Thank you very much. Thank you Mr. Chair. Chair Furfaro: Councilmember Nakamura. Ms. Nakamura: Hi Jeri, thank you for being here, thanks for your testimony. I have a question, are you a member of the Koloa Community Association? Ms. DiPietro: Yes. I am a member and I am also an officer. Ms. Nakamura: I have a question because earlier we heard Louis Abrams' written testimony about his support of upzoning adjacent lands from COUNCIL MEETING 47 MARCH 14, 2012 ag to R6. I was wondering, was that his personal testimony? Does that come from the Community Association? Ms. DiPietro: That idea actually came from the community outside of the Community Association in these meetings that we have had at the neighborhood center. When you have the maps' out this was identified' and as we looked into it further' it was the right size, I think it has similar TMK numbers' and that we realized it would be something that could be rezoned without having to go before the Land Use Commission because it is an appropriate size, it is owned by Grove Farm, and it seems to fit the other criteria in some ways even better than trying to remake... Ms. Nakamura: So the Community Association would support a rezoning? Ms. DiPietro: Yes, we would. Ms. Nakamura: Thank you very much for that clarification. Ms. DiPietro: Thank you. Chair Furfaro: Any other members? If not, I have a question. With the Koloa Community Association being more familiar with the Koloa area than I am as coming from the North Shore, do you know if when the road was redirected through there that that actually cut that tax key map item in half and thus exhausted the one -time subdivision rule for that parcel? Ms. DiPietro: You know I am not exactly sure. That point was brought up, but I believe that it was in favor of us being able to easily rezone it. I would have to probably, Louie would be able to answer that. It did fit the criteria that we were looking for; even with that road going in there to divide it, it was still suitable. Thank you, that is a good question. Chair Furfaro: Thank you. If not, thank you very much for your testimony. Next speaker please? KEN TAYLOR, RESIDENT: Chair, members of the Council, my name is Ken Taylor. I am here today speaking in favor of this resolution. I think historic preservation is a very important part of our economic future. This resolution would give us an opportunity to take a look, a deeper look into the preservation of this site. I think it is a very important one (1). It also gives us an opportunity to look at affordable housing. We have here, the County in the past and today and into the future is going to be spending a lot of time and a lot money on affordable housing. We have here affordable housing that can increase and at the same time this project COUNCIL MEETING 48 MARCH 14, 2012 can be relocated in the vicinity and not have a problem. So I think that it is certainly a win -win situation to pass the resolution and give the community and Grove Farm an opportunity to sit down at the table and discuss and hopefully have the County move what is necessary forward to expedite the changes that would be needed so that we save affordable housing and increase the affordable housing stock at the same time giving the landowner an opportunity to build the fifty (50) units that he would like to build. One (1) of the things that I see in this as a win -win situation, in this fifty (50) unit project he was suggesting thirteen (13) of these units would be affordable housing. So if saving these existing affordable units and the new ones that could be built in the camp would be credited to his project, now his fifty (50) units are all at market rate which is an economic benefit to him. I think there are a lot of issues that he talked about and discussed and everybody can come out whole on this project and that it is a win -win for the community from the standpoint of preserving historic activity that has taken place on the island. I think that is very important especially in Koloa where they celebrate Old Koloa Days and all of that. Mr. Topenio: Three (3) minutes Mr. Chair. Mr. Taylor: And then we have the affordable housing. So I think if there needs to be some minor changes to this resolution let us do it and approve it and move forward. Thank you. Chair Furfaro: Thank you Ken. Any questions for Ken? Thank you again. Next speaker. DENNIS CHUN, RESIDENT: Aloha kakou. My name is Dennis Chun. I am a little nervous right now because I am on tv, millions of people watching me and I do not know what I am saying. I am actually here just to kind of support this resolution. The specific wording I am not sure of, I am not a legal person so I know there are a lot of legal people here that understand that language. I am supporting it more on the sense of moral issues or philosophical issues. Culture is an important aspect, it is something that is held dearly by I think all of us. We all understand that cultures do change. But I think what is happening here is that we are losing things that we do not even understand yet and we are just going ahead with the bottom line, which for companies nowadays is money. But we need to remember where we came from. Grove Farm came from a plantation camp and there are some things that I was listening today and I was like wait that is...it seemed to have detracted from what the issue was which was supporting this resolution or not. The issues of whether there was commercialism or commercial businesses in a plantation camp, there were businesses. If not individuals that started businesses in the plantation camp, it was the plantation itself that had their business in the plantation camp. So they were making money off of making money. That is not the issue. The issue is do we believe philosophically or even morally that we should COUNCIL MEETING 49 MARCH 14, 2012 cherish these things and continue them on into the future and have people understand that this was the past and that is taking us to where we are now. That is why I am supporting this resolution. There are other issues that I kind of, there is some rebutted to. You could say should the legislature be involved in tenancy kind of issues? Well, go back and look at what happened to Bishop Estate where Kamehameha Schools having to sell off Hawai`i Kai. I mean that was a legislative thing that occurred. So yes, there is a balance but there is precedent at the same time. There is a lot of things, I am just speaking I have no written testimony other than the resolution here and I am just listening to people and responding and just speaking from what I feel. I have lost faith in a sense with Grove Farm who I grew up with and thought was a very good local company that understood the people and kind of backed up their employees or people that have worked for the company or whatever; not necessarily with the company but I think more with the leadership style that has come across. I have lost faith. I have lost the trust. Chair Furfaro: Dennis, that was three (3) minutes so I need to let you summarize. Mr. Chun: So I think I support the resolution. There may be some legal issues that need to be addressed, but I think I support it from a very moral and philosophical position. I think there is precedent intervention or at least getting the dialogue going. I think the leadership of Grove Farm should be a little bit more sensitive to the community. Just because they are landlords it does not make it right. That is just kind of the best summary that I can come up with at the time. Chair Furfaro: Thank you. Let me see if there are any questions of you. Any questions of Dennis? Thank you very much for your testimony. Mr. Chun: Mahalo. Chair Furfaro: A conclusion has come of our registered speakers and I am just going to ask one (1) more time before I bring up Grove Farm, is there anyone in the audience who is unregistered and would like to speak? Come right up sir. JAY K. CLARKE, RESIDENT: My name is Jay K. Clarke. I am here to support the resolution. But one (1) of my fast friends from four (4) or five (5) years old is John Kruse. In hearing the testimony I was educated on how well the democratic works. To have this discussion is marvelous. What became apparent to me is nobody spoke to the contribution that the tenants have made over the forty (40), or fifty (50), or sixty (60) years they have lived on this property. Physically they have kept the roads clear; when a storm comes through, they clean -up, they COUNCIL MEETING 50 MARCH 14, 2012 keep the vermon out of town, they all worked, contributed, paid taxes, grew families who are now participating. So this should be accounted for and I know that the landlord appreciates it. The Wilcox family, when they owned Grove Farm, took care of people and other people have spoken to that. There is no reason that the landlord should even be listening to this conversation, and that they are here today I think they should appreciate them for their ability to see this. Back in the old days this would not have even been happening. So that goes to show how we seem to become more going along. I think it is really apparent and people should look at the contribution that these families have made over the years. The ones that are not here have died, the ones that moved out when they got the notice, and these other individuals, and I know that Grove Farm is going to try to do the best thing that they can. I just commend everybody for speaking up. Thank you. Chair Furfaro: Thank you Mr. Clarke. Any questions of Mr. Clarke? Thank you very much. This is the last call for people who are interested in testifying before I call up a representative from Grove Farm. Is there any representatives from Grove Farm? David. DAVID HINAZUMI, PROJECT MANAGER, GROVE FARM: Good morning Chair Furfaro and members of the Council. My name is David Hinazumi and I am here on behalf of Grove Farm. I guess right off the bat I would ask for a little leeway on the three (3) minutes. Chair Furfaro: Well I am going to give you six (6) and then I will judge where we are going from there, but do know there will be questions and answers from the Councilmembers. Mr. Hinazumi: Yes. In this project, what we are attempting to provide is housing opportunities for up to fifty (50) families in the Koloa area. We have heard a lot about the history of the camp and the tenants, and I believe what Councilmember and others have said is yes, we all have ties to the plantations, what Grove Farm was a plantation. It acquired Koloa Plantation in 1948 along with the surrounding camps, ran sugar until 1974, and then when Grove Farm ceased running sugar operations, leased out the lands to McBryde. And so Grove Farm continued to provide housing for the plantation workers. In the camp there is one (1) surviving spouse of a worker who had worked for Koloa and then Grove Farm Plantation and then moved on to McBryde. From what I have learned with the plantations is that once the workers would move out or unfortunately pass away, they would knock down the homes. But in this case, Grove Farm had, there is the one (1) tenant like I said is a surviving spouse, opened up the housing to other Grove Farm employees who worked in other entities, and then it also opened up further to other people who did not have the tie to Grove Farm. COUNCIL MEETING 51 MARCH 14, 2012 Koloa area, if you take a look at Waikomo Subdivision, Waila'au, and even where Wailani Road is, there were camp homes spread out through there. It has been a natural progression to improve the homes and build new homes for people to live in. So there has been the natural progression throughout Waikomo and even next door to the camp along Wailani Road that was a subdivision that was created as houselots and people were able to build and are now very proud to, from what we can tell, happy to live in Koloa. Continuing that transition, we get to K5loa Camp which is in the Urban District, General Planned Residential, zoned residential to put in a project that we are hoping to get up to fifty (50) Koloa families in there. To go over our communications with the tenants, I started speaking to them about this project late October of last year. I was able to meet with each of them individually and then we submitted the... sent out the notices and we gave everyone four (4) month notices. During the initial conversations we talked about the project, what we are trying to do, we offered everyone the first right to purchase in the project, and we are creating this priority list and it starts with the tenants, any family members, any friends that they provide to us; that is the core of the priority list for purchase in this new project. And then from there we want to expand to the surrounding community. It is quite a unique opportunity where basically you are starting with the tenants, and the surrounding Koloa community basically dictate who is, or at least recommending who gets, the first right to purchase in the project. Right now all of the tenants, they are renters, and basically as landlord- tenant is we provide the housing, they pay us rent, and that is the very general agreement. Once you pay rent that is it. I imagine most of us have rented, you pay a rent, and this is it. You do not earn equity. What we are trying to do is convert everyone from a renter to a homeowner, because the home ownership, that is what we can truly pass on to our children, our grandchildren, that is what we are trying to create in this situation. We did advise everyone to please contact the County Housing Agency right away to look into programs for assistance, look into how to become homebuyer ready. This Council and Administration has done a tremendous job pushing to get housing...there is a lot of programs and assistance that can be taken advantage of. There was one (1) couple that moved out within about a month and they are very gracious and sent us a thank you letter for the many years that they had been renting there, and also expressing their interest to purchase in the new project. We do have a house in Lihu`e right below Wilcox Hospital that is available, and we have made that house available, and we have a tenant that should be checking it out perhaps as early as this afternoon again. Hopefully we can get her and her family into that house and we have offered her to, we are offering to donate the existing house to her so she can move that to another lot that she owns elsewhere. Mr. Topenio: Six (6) minutes Mr. Chair. Mr. Hinazumi: We have communicated from the beginning with each tenant and we have also had, we held a community meeting in December, COUNCIL MEETING 52 MARCH 14, 2012 we had representatives attend another meeting at the end of December, and then also Koloa Community Association was gracious enough to host a meeting in January and we also presented at that time. We recognize the concern about affordability of a project and we were able to contact Hawaiian Community Assets. They provide homeownership classes for the County and they have been fantastic. They came to present at that January meeting, and they are following up with people on our interested list and they have been trying to follow -up with some of the tenants as well. It is an ongoing process. At this point like I mentioned, there is one (1) couple that moved out, one (1) will be able to move into an existing unit at Pa'anau, one (1) is going to be able to move into our Lihu`e home. We have our communication open with all of the tenants, the only thing I can ask is that communication is a two -way street. I can tell you that I have done my best to communicate to everybody, also recognizing that at the end of that initial four (4) month notice, even for the folks who had someplace in mind to move, they still needed more time and others need more time, so we gave everyone an additional thirty (30) days. Chair Furfaro: David, since we are required to have a mid- day break for our staff, we will plan to take a lunch break now that we have got your overview, and we will come back for some question and answers after lunch. But I have to tell you, it will not be exactly after lunch because we have another legal matter that we need to address with attorneys that are here from Honolulu regarding beach right -of -way. We will handle that and I think we will reconvene with question and answers around 2:00 p.m. Mr. Rapozo. Mr. Rapozo: We also have public hearings at 1:30 p.m. Chair Furfaro: That is right. I am sorry. Thank you for that reminder. We have three (3) public hearing testimonies, so I would anticipate we will be back to work on this around 2:30 p.m. Mr. Hinazumi: Okay. Chair Furfaro: We are required to mandate this lunch break. On that note we are going to recess for lunch. Please be back around 1:35 p.m. There being no objections the meeting recessed at 12:35 p.m. The meeting reconvened at 1:35 p.m., and proceeded on its agenda as follows: Chair Furfaro: It is my intent to go to the item earlier dealing with Mori Golf and the public easement document. Before I go any further, Councilwoman Nakamura, I would like to recognize you. COUNCIL MEETING 53 MARCH 14, 2012 Ms. Nakamura: Thank you Chair. Since my husband worked on some of the legal documents, I would like to recuse myself from this matter. Chair Furfaro: You are noted as recused. May we read that item please. (Ms. Nakamura was noted as recused from C 2012 -54.) There being no objections, C 2012 -54 was taken out of order. LEGAL DOCUMENT: C 2012 -54 Request from the Office of the County Attorney for approval of the Grant of Pedestrian Access Easement and Cancellation of Portion of Easement 16, made by and between Kaua`i Lagoons LLC, a Hawaii limited liability company, and Mori Golf (Kaua`i), LLC, a Delaware limited liability company, and the County of Kaua`i, concerning property identified and being further described as Tax Map Key Nos. (4) 3 -5- 01:27, 172, 173, and 174. • Grant of Pedestrian Access Easement and Cancellation of Portion of Easement 16: Ms. Yukimura moved to approve C 2012 -54, seconded by Mr. Chang. Chair Furfaro: Thank you very much. First before I go any further, I do want to thank the applicant for providing some excursion services to members of the Council that wanted to get re- familiar with the parcel; that was very much appreciated. Ms. Yukimura: Yes. Chair Furfaro: On that note, I would like to suspend the rules and bring the applicant up if I can. There being no objections, the rules were suspended. IAN JUNG, DEPUTY COUNTY ATTORNEY: Good afternoon Council Chair and members of the Council. I do not know if you wanted, I guess technically we are the applicant since we put the request in, but I do not intend our office or you want... Chair Furfaro: I will tell you whoever the applicant was. Mr. Jung: Well we made the formal request. COUNCIL MEETING 54 MARCH 14, 2012 Chair Furfaro: Then you are the applicant. Mr. Jung: Okay. So I think the document does speak for itself, unless members of the Council have any particular questions we could address. The intent of the re- alignment is to just bring...there were subsequent subdivision done prior or after 1988 when the original easement was laid, and now that there are subdivisions done, there is a re- alignment of this particular easement, and that is the cancellation of it. Chair Furfaro: I believe those that did participate are satisfied with the visual tour, but let me ask if there are any questions. Mr. Jung: Sure. Chair Furfaro: Vice Chair Yukimura. Ms. Yukimura: I just want to thank the gentlemen here for making that tour available, especially to Tim who came all the way from Honolulu. It really helped me to understand where the routing was exactly. I was able to assure myself it did not go off a cliff or into a ravine. It is a wonderful thing that people will be able to access that little knoll above Running Waters. I really appreciated the tour. Thank you very much. I am satisfied that it works for the public. Chair Furfaro: Councilmembers, any other questions? No. I believe what I am looking for then is no more questions of the County applicant, no more questions of the Marriott Resort, so I am looking for public testimony, and then a motion to approve as such. I am going to excuse all of you. Is there any members in the public that wish to speak on this easement item? The meeting was called back to order, and proceeded as follows: The motion to approve C 2012 -54 was then put, and unanimously carried. Chair Furfaro: We are complete with the business on that particular item, thank you for your patience today. I had indicated that we would come back to the Grove Farm issue at 2:30 p.m. so on that note, I would like to go back to where we are on the...I would like to go back to the start of our agenda until 2:30 p.m. so we can get through some business. Mr. Clerk will you take us to a place and time for today's business. C 2012 -63 Communication (02/16/2012) from Councilmember Rapozo, requesting the Administration's presence to provide the Council with: COUNCIL MEETING 55 MARCH 14, 2012 • An annual (2011 calendar year) synopsis of construction activity in the County of Kaua`i as reflected in the building permit information that is normally provided to the Council on a monthly basis. • A projection of construction activity in the County of Kaua`i for the 2012 calendar year: Mr. Chang moved to defer C 2012 -63, seconded by Mr. Kuali`i, and unanimously carried. Chair Furfaro: Because our calendar was sometimes confusing today and we had a technical flaw in the beginning, and two hours and fifteen minutes on the Koloa resolution, I assume that the County Engineer's Office is anticipating a later agenda item, so would I have staff members please call them and let them know when we are finished with Koloa, they will be the first ones up to bat. On this one (1) I would like to just go to the next particular item. C 2012 -70 Communication (02/15/2012) from Bev Brody, Island Coordinator, Get Fit Kaua`i, transmitting for Council information, an update on the County's Complete Streets Policy adopted via Resolution 2010 -48: Ms. Nakamura moved to defer C 2012 -70 to the April 11, 2012 Council Meeting, seconded by Mr. Chang, and unanimously carried. Chair Furfaro: I do want to point out to the members that we did get a request for a deferral to April 11 date and time specific. Thank you very much, next item. C 2012 -71 Communication, (02/22/2012) from the Housing Director, transmitting for Council consideration, a resolution authorizing the filing of the Kaua`i County 2012 Action Plan with the United States Department of Housing and Urban Development and Appropriation of Funds for the HOME Investment Partnership program: Mr. Rapozo moved to receive C 2012 -71 for the record, seconded by Mr. Chang. Chair Furfaro: There has been a motion to receive and a seconded, discussion members? Anyone in the audience wanting to testify on this item? Seeing no one, Mr. Rapozo. Mr. Rapozo: Mr. Chair, I am assuming that when we get to the resolution the Housing Agency will be here? Chair Furfaro: Mr. Rapozo: That is my anticipation as well. Thank you. Chair Furfaro: Another call to Housing as well so we can get a little bit more copacetic here today, a Waianae word for balance. COUNCIL MEETING 56 MARCH 14, 2012 Chair Furfaro: Okay. Further discussion on C 2012 -71? The motion to receive C 2012 -71 for the record was then put, and unanimously carried. C 2012 -72 Communication (02/22/2012) from the Housing Director, transmitting for Council consideration, a resolution authorizing the filing of the Kaua`i County 2012 Action Plan with the United States Department of Housing and Urban Development and Appropriation of Funds for the Community Development Block Grant Program: Mr. Chang moved to receive C 2012 -72 for the record, seconded by Mr. Kuali`i. Chair Furfaro: Vice Chair Yukimura. Ms. Yukimura: I have no problem. Chair Furfaro: No problem, okay. The motion to receive C 2012 -72 for the record was then put, and unanimously carried. Chair Furfaro: I think you missed one (1). We wanted to be on item C 2012 -73 which is an action from Vice Chair Yukimura. Ms. Yukimura: Chair, just for clarification, we went straight to the resolution, Clerk, so now we just receive this communication I think. Chair Furfaro: It has already been received. Ms. Yukimura: We did already? My apologies, I am not tracking. Chair Furfaro: That is right, your apologies are accepted. Ms. Yukimura: Clerk, I am sorry, the Clerk was right. Chair Furfaro: Now we will go to the Salary Commission. C 2012 -74 Communication (03/01/2012) from the Chairperson, Salary Commission, transmitting the Salary Commission's Resolution No. 2012-1, Resolution Amending Resolution No. 2011 -1 Relating To The Salaries Of Certain Officers And Employees Of The County of Kaua`i: Ms. Yukimura moved to receive C 2012 -74 for the record, seconded by Mr. Chang. COUNCIL MEETING 57 MARCH 14, 2012 Chair Furfaro: We are on Salary Commission resolution, is there any public testimony? Seeing none, I will call the meeting back to order. Members discussion? Yes Mr. Rapozo? Mr. Rapozo: Mr. Chair, well first of all I would like to thank them for getting it to us before March 15. Chair Furfaro: I will second that. Mr. Rapozo: That is a good thing. Now I am assuming there is, this Council has to take some sort of action. I guess the best thing would be, because I would really want to have some discussion, I do not want to have it today. Is there any way we can have this referred possibly to the Committee of the Whole to have some discussion? I do not see anybody here from the Salary Commission. I would assume that someone would have been here to discuss the... Chair Furfaro: I will ditto that, but we have no one from the Salary Commission here. Mr. Rapozo: So if there is no objection I would make the motion to refer this to the Committee of the Whole. We do have, I believe we have thirty (30) days, correct? Sixty (60) days to take action and I do want to have some discussion with the Salary Commission or the Administration because this resolution does again, is set to freeze some salaries and I just kind of want to hear the rationale, and I kind of want to have a general discussion if it is not a problem. Chair Furfaro: So we have a motion and you want to refer that to my committee, the Committee of the Whole? Mr. Rapozo: In the Committee just so we can have that discussion; I do not want to tie up today's calendar with any more time on this. So if there is no objection, I would make a motion. Ms. Yukimura: I will second. Chair Furfaro: take it to? Mr. Rapozo: which is on March 21. Chair Furfaro: Do we have a date specific that you want to I will refer it to the Committee of the Whole Two (2) weeks from now. COUNCIL MEETING 58 MARCH 14, 2012 Mr. Rapozo moved to refer C 2012 -76 to the Committee of the Whole, seconded by Ms. Yukimura. Chair Furfaro: We took public testimony, any more discussion amongst the members? Mr. Rapozo: Just that I would ask that a Salary Commission representative be present. Chair Furfaro: So noted. Ms. Yukimura: Point of information. So we are actually referring the communication and then when we come to the resolution we will refer the resolution? Mr. Rapozo: I believe this is the resolution. There is no separate resolution because this is not a Council resolution, this is a Salary Commission resolution, and that is attached to the communication. Ms. Yukimura: It is attached? Mr. Rapozo: This is all in one (1). Ms. Yukimura: Okay. Thank you. The motion to refer C 2012 -74 to the Committee of the Whole meeting on March 21, 2012 was then put, and unanimously carried. Chair Furfaro: With a footnote to the Clerk, please send out with my signature an expectation of having a member and or others from the Salary Commission present. Next item please. C 2012 -75 Communication (02/14/2012) from the Planning Director, requesting Council approval to apply for, receive, indemnify and expend Certified Local Government (CLG) Grant Funds in the amount of up to $60,000.00 through the State of Hawai`i, Department of Land and Natural Resources, State Historic Preservation Division, to work with the County of Kaua`i Historic Preservation Review Commission in updating the Historic Resource Inventory: Mr. Chang moved to approve C 2012 -75, seconded by Mr. Rapozo. Chair Furfaro: It has been moved and seconded, I see the Planning Director has just arrived, he must have gotten his calling. I will suspend the rules, do you want to testify in particular on item C 2012 -75 Communication from the Planning Director on the CLG? COUNCIL MEETING 59 MARCH 14, 2012 There being no objections, the rules were suspended. MIKE DAHILIG, PLANNING DIRECTOR: Good afternoon Mr. Chair and members of the Council, Mike Dahilig for the record. We are requesting the Council's approval to apply for CLG funds to support the Kaua`i Historic Preservation Commission in its desire to start cataloging a lot of the historic properties. What we are looking at trying to do with the funds eventually is part of the proposal to DLNR; I am sorry I am a little winded. Chair Furfaro: Did you run? Mr. Dahilig: Yes I did run. Chair Furfaro: I am impressed. I am impressed. We called, you ran. Mr. Dahilig: I need to run anyway. I guess part of the desire is to maybe look at trying to work at actually digitally cataloging the information so that it will eventually be uploaded and layered to a GIS type of mining format. So that is the request before the Council this afternoon. Chair Furfaro: Members, any questions for the Planning Director? Go right ahead Councilmember Nakamura. Ms. Nakamura: I guess this is just more of a comment, but I just think that the Historic Preservation Review Commission does important work for this island and I am glad that we are taking advantage of these outside funds. I believe we are only one (1) of two (2) Counties who have access to these funds. Mr. Dahilig: That is correct. Ms. Nakamura: I am just glad that we are taking advantage of this resource. Thank you. Chair Furfaro: I would like to also say my compliments to the Department, and if we get the money, I will run a lap with you. Mr. Dahilig: Okay. Chair Furfaro: Any other questions for Planning Director? None. Thank you Mike. Mr. Dahilig: Thank you. COUNCIL MEETING 60 MARCH 14, 2012 Chair Furfaro: Is there anyone in the audience that would like to testify on this item? The meeting was called back to order, and proceeded as follows: The motion to approve C 2012 -75 was then put, and unanimously carried. Chair Furfaro: On this next item I want you to know that the Prosecuting Attorney's Office is on their way so we will come back to that one (1). Let us go to the next page please. C 2012 -77 Communication (03/08/2012) from Vice Chair Yukimura, requesting agenda time to recap and approve the goals that the Council identified as top priority items at the January 24, 2012 Council Goal Setting Workshop: Mr. Rapozo moved to approve C 2012 -77, seconded by Ms. Yukimura. Chair Furfaro: Thank you very much. I am going to ask if there is any public testimony regarding this Council Goal Setting Workshop from January 24. If there is none, I will call the meeting back to order. Members we have a motion and second to approve, discussion? Ms. Yukimura: Chair Furfaro: May I? Yes. Ms. Yukimura: This really should be considered a draft. We went through this workshop so we trust that the outcome is some goals that are going to give us guidance in the Budget Session and throughout the rest of our term. And so using the notes from the facilitator, I tried to basically cluster the key points on the worksheets. As you recall we did, with two (2) exceptions, if I have not been accurate then I welcome amendments, the two (2) exceptions where we did not have discussions but I thought it would be important to be part of our goals was number 7(a) — the important ag lands were not really mentioned in our major goals, but I thought it should be a goal, and if we are in the process of adopting our goals we might want to consider adding that. And then number 8 is about affordable housing; we did not have that as one (1) of our major goals either, but I think it needs to be one (1) of our priorities. So those I believe were the two (2) sort of additions that I took some liberty to add, but subject to your approval. So if it is not the will of the Council to add those then we can amend it. The rest are just trying to re- organize maybe (inaudible) a little bit in terms of the, more of the sub -areas rather than the main goal. I hope I kept true to the discussions that we had. I knew Councilmember Nakamura had some current concerns that she and I did not get to COUNCIL MEETING 61 MARCH 14, 2012 discuss this morning in the pressure of everything else, so I look forward to hearing her comments and thoughts. Chair Furfaro: Before I recognize Councilmember Nakamura, we are asking to approve what you propose is the draft. Ms. Yukimura: I am submitting it as our proposed goals synthesized from our workshop, but it is certainly open to amendment so that it truly reflects the Council's purpose. But I just thought it would be good to have a completed document instead of just being part of the minutes; it is something that we can refer to and use as a guide. Chair Furfaro: I will recognize Councilmember Nakamura first and then you Mr. Rapozo. Ms. Nakamura: Thank you. Thank you to Councilmember Yukimura for taking the minutes and putting it into this format which I think is more useful. I also wanted to, the amendment that I have before you makes a few changes. One (1) is that when we placed dots next to our priority goals, I wanted to put it in the order of the goals that had the most dots just to give a sense, I think all of them are important, I think we arrived at that agreement but just to show the order of priority. Some of them, two (2) of them with the same number of dots, three (3) of them with the same number, but it gives us a better sense of where we would like to see the Administration focus. The other thing that was left out of the original list was the incremental expansion of the Kaua`i Bus which somehow was left out of the discussion. I think this includes all of the priority projects that Councilmembers identified. So it is just sort of re- ordering and adding the incremental expansion of the Kaua`i Bus. I did some wordsmithing on referring to the comprehensive economic development strategy since that is what we refer to it, that report, the economic diversification report. So I just made a few clarifications and re- ordering, but I think most of what Councilmember Yukimura put in there was retained in this amended version. Chair Furfaro: Mr. Rapozo. Mr. Rapozo: I just had a question. I asked the Deputy Clerk to go get whatever the report was from the facilitator that we hired. I may have just not seen it, I may have missed it, but I was curious if she had put together a report of what the results were. If that did come, I apologize I did not get it, so I just asked the Deputy Clerk to go get that, whatever she provided. I had assumed that we were going to get some sort of recap from her because my memory is not as good as many of you, I would need to refresh. The Deputy Clerk is getting that right now for me. Vice Chair did you want to add anything to that comment? COUNCIL MEETING 62 MARCH 14, 2012 Ms. Yukimura: It looks good to me. I am just wanting to understand the 1(a), 1(b), 2(a), 2(b), I guess I do not quite understand that. Ms. Nakamura: They all had an equal number of dots. So some of them had four (4), some of them had three (3), so we could not really say which one (1) was higher in priority or equal, the 1(a), 1(b). Ms. Yukimura: I just want to say that I may have just missed it, but I did not hear that we were really prioritizing...we were going to pick I think five to six (5 to 6) goals and they were all going to be the goals that we worked on, it was not like you just work on the first one (1) first or the last one (1) last. So I guess I did not realize that the dots were to actually set up an order; I thought the dots were basically to let the top ones float to the top. Does it mean that 1(a) is higher priority than 3(a) or 2(a) or 2(c)? I guess I am just trying to understand what an order of priority means. Ms. Nakamura: Maybe we did not have that conversation at the workshop. Ms. Yukimura: Yes. That is what I am thinking. So I did not understand the dots to mean that we have a priority among the top goals, I just thought they would be our top goals in different areas. Ms. Nakamura: And typically when I facilitate, that is usually, you know, the top goals are the ones people think are most important. Ms. Yukimura: So I mean what if we just made a 1, 2, 3, 4, 5, 6, 7, 8, 9, whatever it is. Ms. Nakamura: That is fine. Ms. Yukimura: And then just say, like we say which I like, the sequencing of subsections, it is the last line of your amendment under... it does not reflect the order of importance, same thing with the large numbering. They are basically our priority list, is that okay. Ms. Nakamura: Ms. Yukimura: I would be fine with that. Okay. Chair Furfaro: Any further discussion on that item? Did you see any of Elizabeth Kent's notes that you could share with Mr. Rapozo? You got them? COUNCIL MEETING 63 MARCH 14, 2012 Mr. Rapozo: Yes. Thank you. Chair Furfaro: You folks should know that those notes I shared in advanced of the Budget with the Mayor's Office. Ms. Yukimura: Thank you. Chair Furfaro: So that he had some awareness of the purpose of our workshop and those items that... and I will not use the higher dots, I will use the term la creme de creme, that cream that floats to the top. So they did get the copies. Ms. Yukimura: I wonder if we could just have, just defer this issue so that we can have a re -write of the amendment basically to reflect what we have just talked about. Chair Furfaro: That is fine. You are talking about deferring it for today... Ms. Yukimura: No, deferring it to the end of the agenda or... Chair Furfaro: But you are going to be gone at the end of the agenda, or at least that is what I read in your request. Ms. Yukimura: Actually depending where we are in the meeting, I have to choose my priorities. I would intend that this be passed by the end of the day, and actually you probably do not need me to be here either. Chair Furfaro: So we will come back to this item then. Is that satisfactory to the members? Ms. Yukimura: Thank you. Chair Furfaro: Councilwoman Nakamura has agreed to make the changes. Mr. Bynum did you want the floor? Mr. Bynum: I apologize for being late. I think this accurately reflects the way you have made these changes, and it accurately reflects the decisions that we made. I assume that was the intention (inaudible) doing it this way, and so I am not, excuse me, but what are you suggesting differently? Ms. Yukimura: Chair Furfaro: May I explain? You have the floor Vice Chair. COUNCIL MEETING 64 MARCH 14, 2012 Ms. Yukimura: Thank you. I was understanding that our goal for the workshop was to select the top goals in different areas that we as a Council wanted to work on. And so I was puzzled by the 1(a), 1(b), 2(a), 2(b), 2(c), and I think Councilmember Nakamura was putting them according to the weighting of the dots. But I think what we are saying is we are not trying to say that one (1) of the six (6) goals is more important than another of the six (6) goals; we are saying these are all important goals for us to work on. And so to reflect that we are just going to number them 1, 2, 3, 4, 5, 6, 7, or however many there are. At the end we are going to say that one (1) goal is not more important than the other, and neither is the sequencing of the subsection showing any priority. Mr. Bynum: Okay I understand that. Ms. Yukimura: Does that make sense? Mr. Bynum: It is the way it kind of lay before the Amendment. Councilmember Nakamura's reflects the weighting we did give that day, and there were some surprises that day, but that does not mean all of these goals are not important and are not all things that we are working on. But it was, some things floated to the top, some were mid -range and some were important goals but not as strong. Either way is fine because we are going to work on all of them, but this does accurately reflect the weighting we did that day. Chair Furfaro: Mr. Rapozo. Mr. Rapozo: And I would agree. Unless there is a strong desire to re -do it, I think the weighted 1(a), 2(a), 2(b), I think that accurately depicts the event that we had. So I am prepared to support it right now then we do not have to come back to it if there is no opposition. I understand we are just going to be changing the numbers, but I think like Mr. Bynum said, this is an accurate reflection of how, and it is it really boils down to... the more of the dots was more of a priority to the Councilmembers. More Councilmembers felt strongly about implementation of Integrated Solid Waste Management Plan than any other item, that is what this shows. I want to kind of keep that and preserve that because that was the basis of having this goal setting workshop. Mr. Chair, I am prepared to make a motion to approve the Council Goals as amended by Councilmember Nakamura. Ms. Yukimura: (Inaudible) motion on the floor. Mr. Rapozo: I am making a motion to amend it. Ms. Yukimura: No it is... did you make a motion to amend? COUNCIL MEETING 65 MARCH 14, 2012 Chair Furfaro: So Mr. Rapozo asked for an amendment, Mr. Bynum has now seconded that amendment, any further discussion? Vice Chair Yukimura. Ms. Yukimura: It is puzzling to me to say that the Solid Waste Management Plan is more than the Kaua`i Bus or the provision of affordable housing. So I just think because this is an important list, it gives guidance to us and to the public when they read it, then it is much clearer if we just list all of our goals. These are all of our goals, we are not going to wait for one (1) to be accomplished before the other, and we are going to work on all of them. So, this is a goals document, we need to show as clearly as we can what our intention is. Chair Furfaro: Any further discussion as we have an amendment on the floor that has been seconded. Mr. Rapozo. Mr. Rapozo: I would just call for the question on the amendment. Chair Furfaro: Okay. Mr. Bynum. Mr. Bynum: I just want to say, to anyone in the public when you hear us talking about "dots" we went through a process that is used by many facilitators and it has validity, and it takes a group decision and it weights priorities. I do not think this is a major issue but this amendment accurately reflects the outcomes that we did that day. It is not to say that the Kaua`i Bus is not important, but when we went through that process these were the priorities. We are still going to work actively on all of these because they are important to all of us, that is the other thing of this process that we have identified. All of these are really important processes, but the process kind of lets some things move to the top and this amendment accurately reflects that. Thank you. Chair Furfaro: I am going to give you the floor one (1) more time Vice Chair and then I am going to call for the vote. Go ahead you have the floor. Ms. Yukimura: As I understood the process, we used the dots to give us a rough outline of what we wanted, and then we came back as a group to look and see if in fact because we did it without a whole lot of discussions. So then we looked at the end result and said what is missing, for example the MRF was a big point of discussion after we did the dots. I thought the maker of the amendment was willing to withdraw it and make it a clearer, I mean our final decision is today. So the question is what does it reflect? To me it reflects we have six (6) or nine (9) goals and that is what our goals are. I mean I am not even sure why we have a priority amongst those goals. We had priorities amongst all the other things that came up, but this is what we in the end put together. So I am surprised, I thought we had something we could all live within our discussion. Chair Furfaro: Well we have a motion on the floor to amend. I would like to call for the vote on the amendment, and I would like to do it by roll call so it is very clear the first time around. COUNCIL MEETING 66 MARCH 14, 2012 The motion to amend as circulated was then put, and carried by the following vote: FOR AMENDMENT: Bynum, Chang, Kuali`i, Nakamura, Rapozo, Furfaro AGAINST AMENDMENT: Yukimura EXCUSED & NOT VOTING: Chair Furfaro: Now we need to go to the main item. We have had a motion to approve, we have had some dialogue on that, I will recognize Mr. Bynum for discussion on the main motion as amended. Mr. Bynum: There are important goals in the County that are not on this list that does not mean that we are not going to pay attention to those and work on them. But we went through a process that helped align the ones that clearly were a high priority to this Council that includes every one of these on this list and there are other goals that are not on this list that are important priorities as well. This gives us a good sense, and it was a great day and I appreciated it, it gave us a good sense of where we had consensus not on specific measures to fix these things but on saying these are important priorities. So I think it was a good process. Thank you. Chair Furfaro: Vice Chair Yukimura. TOTAL — 6, TOTAL — 1, TOTAL — 0. Ms. Yukimura: I think it was a very good and important process, and I think we did come up with our major goals. I will be voting for this because they do reflect our major goals. Chair Furfaro: Mr. Rapozo. Mr. Rapozo: I want to thank Councilmember Nakamura for putting them in this order because I believe it is important that we keep it in the order that it was prioritized. Some of these things I may not agree with the order but that is how it fell, that is how the dots fell. I think it is quite clear that the implementation of the Solid Waste Management Plan maybe to some Councilmembers is not as important as increasing the Bus Transportation, but I think...that is why it is important to keep it like this, because when we re -visit this or if a subsequent Council re- visits this, they will understand that in 2012 or 2011 the Council at that time collectively, not individually, believed that the implementation of the Solid Waste Management Plan was of the highest priority. I am not going to say that is not true. Obviously if you count the dots that item was more important to more Councilmembers than others, that is the way it fell, you may not agree, Councilmember Yukimura, but I think we have to honor the process. I think this set -up, this system that Councilmember Nakamura put together, three (3) months from now, six (6) months from now when I review this, I will know exactly how the Councilmembers felt collectively as a body when we set -up our goals. So I appreciate that and obviously I will be supporting it. Thank you. Ms. Nakamura: I just want to thank Chair Furfaro for allowing this process to take place, because from what I understand it does not always happen. And I want to thank Councilmember Yukimura who was instrumental in setting up the logistics of that event. So thank you very much both of you. COUNCIL MEETING 67 MARCH 14, 2012 Chair Furfaro: Further dialog from Mr. Bynum. Mr. Bynum: Just one (1) point of clarification. I always like to say this when I can, I agree with Mel. But I think the reason there is 1(a), 1(b), is that those were equal priorities right? So thank you. Mr. Chang: Thank you Chairman. I just wanted to make a little bit of an explanation /clarification. I think for the benefit of those that are in our audience in our Chambers and those that are at home watching, when we make referral to "dot" it almost seems like we are making referral to dot like a dot. But I just wanted to make the public know that we were given out color -coded dots that we placed on what we thought was important, so that would be the definition of the "dots" that that is how we got the majority or how we were able to get our count; we placed color -coded dots as far as the priorities are concerned. Thank you. Chair Furfaro: My closing comments again I would like to thank Councilmember Nakamura and I do think that we scheduled a workshop for us so that through back and forth communication we could find things that we can all reach agreement on, not necessarily as the orders of priorities because there are many variables that come with those sources. Funding for fuel for the bus obviously also has to compare funding for things that we need to do with Solid Waste, but most importantly for the body we negotiated on the merits of what we need to do in our community. I compliment all of you, but with that I would like to call a role call vote on this one (1) as well please. The motion to approve as amended was then put, and carried by the following vote: FOR APPROVAL: Bynum, Chang, Kuali`i, Nakamura, Rapozo, Yukimura, Furfaro AGAINST APPROVAL: EXCUSED & NOT VOTING: TOTAL — 7, TOTAL — 0, TOTAL — 0. Chair Furfaro: It was important for us to have the ultimate agreement by all seven (7) on the issues that we agreed on for goals so there is no confusion. On that I believe the Prosecutor is here, I want to get to that item now, if you could read that item please. C 2012 -76 Communication (02/23/2012) from the Prosecuting Attorney, requesting Council approval to expend Office of Prosecuting Attorney (OPA) Regular Salary Funds to hire a Law Office Assistant: Mr. Rapozo moved to approve C 2012 -76, seconded by Mr. Kuali`i. Chair Furfaro: Thank you. There is a motion to approve and second, the rules are suspended and we have the Prosecutor with us. Shay, you have the floor. There being no objections, the rules were suspended. SHAYLENE ISERI - CARVALHO, PROSECUTING ATTORNEY: Thank you. We had made this request at this time instead of waiting until the new budget COUNCIL MEETING 68 MARCH 14, 2012 simply because we have a... Shaylene Iseri - Carvalho, Prosecuting Attorney, County of Kaua`i. The reason why we submitted this request at this time is because we do have an extensive murder trial that is beginning on May 14 that involves almost forty (40) witnesses, multiple witnesses from the mainland, we also expect to take at least two (2) months in trial. Because it's before the next budget this is the reason for our request. The Victim Witness Section of this position really is only twenty percent (20 %) and that involves victim witness contact, the rest of them is trial preparation, and so we have probably a couple hundred exhibits that this Law Office Assistant will be responsible for, also preparing whatever documents that would be necessary, motions to suppress, motions to dismiss, motions in limine, motions to prohibit certain witnesses from testifying. There's a slew of work that needs to be done just for that trial and so this is the reason why we're requesting this because the Law Office Assistant entails a much broader opportunity; they serve subpoenas, they set up witness interviews, they're present during the witness interviews, they prepare documents, they also provide the liaison between setting up the police officers in meeting with the witnesses. That in a nutshell is the position description for the Law Office Assistant. Chair Furfaro: Thank you. Currently your office has two (2) administrative people out on leave, is that correct? Ms. Iseri - Carvalho We have an Administrative Officer on leave, not on leave, we have not been able to resolve the issue with respect to the issues that were raised regarding the reallocation of the Administrative Officer. Chair Furfaro: Okay. And then you have another one that is out on funeral leave? Ms. Iseri - Carvalho: Victim witness, we have two (2) people on leave for various reasons. Chair Furfaro: But one (1) is funeral leave? Ms. Iseri - Carvalho• No. One person went out on medical leave and was expected to return next week, but we have been informed that a member of her family passed away, and so it is in all likelihood not going to be returning but we don't have any leave subsequent from the last three (3) months; three (3) months she has been out. COUNCIL MEETING 69 MARCH 14, 2012 Chair Furfaro: Okay. Members questions at this point because I had erred here, we have a 2:30 p.m. certificate to give out and perhaps I can hold questions, we can do the certificate. Shay, would you have a problem with that? Ms. Iseri - Carvalho: Well we do have pretrial conferences today on a major sex assault case, but at what time do you expect... Chair Furfaro: Well, this is Councilwoman Yukimura's certificate and we had scheduled it for 2:30 p.m. Ms. Yukimura: I know we also have the Koloa piece at 2:30 p.m. too. Chair Furfaro: Yes, it is called the... Ms. Yukimura: When is your conference set -up? Can you come... Ms. Iseri - Carvalho: It is at 3:00 p.m. Ms. Yukimura: At 4:00 p.m.? Chair Furfaro: She said at 3:00 p.m. Ms. Iseri-Carvalho: But I have other appointments after 4:30 p.m. so I will be willing to wait, because this agenda item is very crucial for the operations of our office and I'm going to be gone. Chair Furfaro: Well let's see. Let's go through your piece and I'm going to ask the indulgence of the receivers of the certificate to give us some time to conduct business. Members, do you have questions for the Prosecutor's Office? Mr. Bynum. Ms. Iseri - Carvalho: I would state at this time that there is a pending criminal case that our office is handling with Mr. Bynum and we definitely are unable to speak with Mr. Bynum because he is represented by counsel. I also believe there is a conflict in him asking questions of our office in light of the fact that there is a pending criminal case against Mr. Bynum by our office. So I will not be entertaining any questions for fear of violating the Code of Ethics and our attorney- client responsibility. Chair Furfaro: Okay. Thank you for that feedback. Mr. Bynum. COUNCIL MEETING 70 MARCH 14, 2012 Mr. Bynum: I have asked staff to distribute the findings of the Ethics Commission that I requested to be available for today just in case that this, excuse me? I just want to state for the record, last time, I have concerns about this item, I have concerns about the Victim Witness Program. I have been precluded from asking those questions for almost three (3) years. When a Victim Witness item was before this Council a few weeks ago, the Prosecutor made the same assertion that I was somehow conflicted. I have subsequently gone to the Board of Ethics and asked for an advisory opinion which I have available here to circulate. The short version is they say I do not have a conflict of interest and that I can continue to do my job as a Councilmember even related to the Office of the Prosecuting Attorney. So I'd like to have that opinion circulated to all of you and to the Prosecutor and anyone else who is interested and I would like to be able to ask some questions. Ms. Iseri - Carvalho: Chair Furfaro: Ms. Yukimura: Ms. Iseri - Carvalho: Ms. Yukimura: Ms. Iseri - Carvalho: Sure. If I could answer that Mr. Chair? Yes, I will recognize you. Ms. Iseri - Carvalho: It is not the Board of Ethics; it has to do with the fact that you are represented by an attorney and we are prohibited from speaking with any defendant without the permission of... It does not apply. Excuse me, Ms. Yukimura? It does not apply. Ms. Iseri - Carvalho: It does. If you put in writing that you are waiving that, I do not have a problem, but we do need something in writing that says that you are allowing me the Prosecutor to speak with you who is represented by an attorney in a criminal case that we have pending against you. Mr. Bynum: I have no intention in discussing the criminal case that is pending before you. I have intention to speak about this agenda item and Victim Witness. Chair Furfaro: I heard your plea and I would like to keep the floor until I recognize you. I'm no longer recognizing the Prosecuting Attorney but I would like to find out who is the County Attorney on duty at the moment. May I ask you to excuse yourself ladies for a moment so I can have the County Attorney up. COUNCIL MEETING 71 MARCH 14, 2012 Chair Furfaro: Thank you very much. If you recall the last time on Mr. Bynum's own initiative he excused himself from participating and he has seeked an opinion on this challenge which you have just heard. Can you give this body any guidance on that or have you seen this opinion from the Ethics Committee? MONA CLARK, DEPUTY COUNTY ATTORNEY: Yes I have. The opinion was...first of all I'm Mona Clark, Deputy County Attorney. The opinion stated that there was no conflict as a result of the misdemeanor charges against Mr. Bynum that have been filed by the Prosecutor's Office and that he could participate in all agenda items concerning the Prosecutor's Office that came before this body. Chair Furfaro: Would you say at this particular point that follows within the legal parameters of what is expected of members of an office of the County in fact as Mr. Bynum is pointing out, when he is also as being pointed out by the Prosecutor's Office kind of in this area of no discussion no delegation. Is there something? I went to hotel school, so when I got myself in trouble I asked an attorney, now I am asking you - are there any other possible conflicts that we should be aware of? Ms. Clark: I am not aware of any conflict that prevents Mr. Bynum from asking questions. Chair Furfaro: Okay. Mr. Rapozo. Mr. Rapozo: Mona, I have read the opinion and the opinion surrounds three (3) items: whether Mr. Bynum could participate in a budget hearing, if he was precluded from participating in a Council's budget hearings relating to the funding, or whether he could vote on the budget, and the third was whether he could participate in and vote on matters. What I heard from the Prosecutor was not any of that, not that he has got a conflict and should be recused from the discussion and the vote, what I heard was there is some sort of rule that a criminal attorney cannot discuss or cannot talk to a defendant without a waiver. I think she asked for a waiver. This opinion does not cover and does not talk about the fact about the discussions between the two (2). Would you agree that a waiver would be the best way? A waiver of that prohibition of an attorney talking to a defendant? This does not cover that, this covers his... Ms. Clark: No that... Mr. Rapozo: Right so this does not have no bearing or relativity on question and answer; that is a separate issue that had not gone to the Board of Ethics. I think that, I am not sure, I do not know, like the Chair said I did COUNCIL MEETING 72 MARCH 14, 2012 not go to law school but I know what I heard and I heard the Prosecutor say if Mr. Bynum was willing to write and sign a waiver in writing then there would be no problem. I am not sure...I mean if the Prosecutor is not going to answer the question that is her prerogative. Ms. Clark: Prosecutor can do. Right. I am not speaking to what the Mr. Rapozo: What I am asking, are you aware of that requirement that the Prosecutor or any criminal attorney cannot... Ms. Clark: Your professional ethics would prevent you from speaking with somebody concerning a matter that was before you in a criminal case with the defendant. Mr. Rapozo: Right and I only speak because of my experience as an investigator that if in fact a defendant had an attorney we were not allowed at all to, regarding whether it is about a football game, or basketball game, could not do it until we spoke to the attorney. I am ju,is that accurate? Chair Furfaro: On that note, I would like to take a recess. We are going to take a ten (10) minute recess. There being no objections the meeting recessed at 2:38 p.m. The meeting was reconvened at 2:49 p.m. and proceeded as follows: There being no objections, the rules were suspended. AMY ESAKI, FIRST DEPUTY COUNTY ATTORNEY: Amy Esaki, First Deputy County Attorney. The question that I heard Councilmember Bynum asking was whether he could ask questions related to the item on the agenda. I believe the item on the agenda is a communication from the Prosecuting Attorney requesting Council approval to expend Office of the Prosecuting Attorney regular salary funds to hire a Law Office Assistant. With that in mind, because it is directly related to the hiring of a Law Office Assistant under Rule 4.2 of the Hawai`i Rules of Professional Conduct, he is able to ask questions relating to that specific topic. Mr. Rapozo: Can you read 4.2? Ms. Esaki: Sure. 4.2 states, in representing a client, a lawyer shall not communicate about the subject of the representation with a person the lawyer knows to be represented by another lawyer in the matter unless a lawyer has a consent of the other lawyer or is authorized by law to do so. In this case, the COUNCIL MEETING 73 MARCH 14, 2012 subject matter is not Mr. Bynum's case before the courts. This matter is about the hiring of a Law Office Assistant. So as long as the questions are related to that, he may ask the questions. Mr. Rapozo: Thank you. Chair Furfaro: Any other questions to the County Attorney's Office at this point in time? None. Prosecutor's Office. Ms. Iseri-Carvalho: Yes, Council Chair, I did speak with the County Attorney. As you recall, the items that Mr. Bynum said he was going to talk about was dealing with the Victim Witness Program which is not an agenda item which violates sunshine laws, which is what I told the County Attorney. She informed me that he is strictly to talk about the Law Office Assistant position and that is it. Chair Furfaro: Okay. Ms. Iseri - Carvalho: And anyone else, I mean anyone else. Chair Furfaro: I take in consideration your comments and the comments back from the County Attorney, but I do want to point out my position. After hearing this interpretation, it is my preference to look for a motion to schedule this as a special agenda item in the full Council next week Tuesday at 8:30 a.m. The rationale of course is having this statement read to us accordingly. This also may settle some temperament that might exist here for the week and then we will move forward on this item. Ms. Iseri - Carvalho: Yes, but I need to check my calendar because I am on O`ahu Monday and Tuesday. Chair Furfaro: We can post it at a later time in the morning on Wednesday if you like because it will be a Special Council Meeting. If 1:00 p.m. in the afternoon works better for you I will recess the Committee Meeting and post a specific time for you. Ms. Iseri - Carvalho: Okay. Let me check my calendar. Chair Furfaro: Yes. Ms. Iseri-Carvalho: I have a sentencing on a sex assault at 2:00 p.m. and a fraud presentation at 10:00 a.m., so I don't know how long the sentencing on the sex assault case is going to be. COUNCIL MEETING 74 MARCH 14, 2012 work? Chair Furfaro: So my original offer of 8:30 a.m. would that Ms. Iseri - Carvalho: No, we need to drive out to do the senior fraud presentation. Would it be possible to be 8:00 a.m. to allow for questions? Chair Furfaro: Yes, we could do that. Ms. Iseri- Carvalho: Okay, that would probably, I would have an hour and a half and then half an hour to drive out for my presentation. Chair Furfaro: Okay. Ms. Iseri - Carvalho: Okay. Chair Furfaro: So that will be a week from today, 8:00 a.m. I will schedule a Special Council Meeting for your office. Ms. Iseri - Carvalho: And it is on March 21, just to clarify? Chair Furfaro: Yes. Ms. Iseri - Carvalho: Perfect. Thank you. Chair Furfaro: Thank you. Thank you both. Members I think you understand what the Chair is asking I am asking for a deferral for one (1) week to an 8:00 a.m. conversation on this subject matter. The meeting was called back to order, and proceeded as follows: Mr. Bynum: I would like to have the floor. Chair Furfaro: There is no discussion, there is a motion and a second for deferral. Mr. Bynum when you stepped out of the room I had felt in a best interest of the body as we go through these legal questions that a one (1) week deferral was reasonable and the Prosecuting Attorney Office has agreed to 8:00 a.m. next week Wednesday for us to continue on this item. Mr. Bynum: The Prosecuting Attorney also made statements here on the record on this agenda item that I would like to address. Chair Furfaro: Okay I am sorry, we have a motion and a second, you will have an opportunity next week Wednesday. COUNCIL MEETING 75 MARCH 14, 2012 Mr. Kuali`i moved to defer C 2012 -76 to a Special Council Meeting on March 21, 2012, at 8:00 a.m., seconded by Ms. Nakamura, and carried by a vote of 5:2 (Mr. Bynum and Ms. Yukimura voting no.). The meeting recessed at 2:54 p.m., reconvened at 3:24 p.m., and proceeded as follows: Chair Furfaro: We are back from our recognition from Kaua`i High School girls team, and before I go any further I would like to have a moment of personal privilege. I just came across Kaua`i Business Magazine which identified twenty (20) individuals for the next twenty (20) years: Hawai`i People To Watch, and to my surprise, my pleasant surprise, I open up and one (1) of the twenty (20) to watch in the next twenty (20) years includes Mauna Kea Trask from our own County Attorney's Office. So I just wanted to share that with everyone, quite a nice compliment for the young man that works in our County Attorney Office. If I could ask if we could have the representative from Grove Farm up. David, it is my intent now to have an opportunity to have members to pose some questions to you as it relates to this resolution, and so members, I would like to remind us if we have many questions if we could rotate it amongst members because some members might have the same thing on their mind at this moment. So Mr. Chang, I see your hand closest to the blue button, does that mean you want to speak? You have the floor. Mr. Chang: Thank you. Mr. Hinazumi, just because we took a couple of breaks from lunch and you might just want to state your name for the record again. DAVID HINAZUMI, PROJECT MANAGER, GROVE FARM: David Hinazumi. Mr. Chang: I was going to, I think it might have been Mrs. Kuala that brought it up a little earlier that if it was a situation that the residents just said okay we are out, we heeded our notice and we are out, what is the process? Are there permits that need to be taken care of? You probably heard the testimonies like let us say for example they went out, .it would take months and months, the word was used it would be premature that maybe people are out, but yet we are still standing by. What is the process that you are going through right now? And again what if nobody was there, in a perfect world what would happen right now? COUNCIL MEETING 76 MARCH 14, 2012 Mr. Hinazumi: We would apply for our Class 3 Zoning Permit, it is handled administratively through the Planning Department, and we will submit our application and they have forty -five (45) days to review. Mr. Chang: So do you anticipate any snags or any problems in that forty -five (45) days process? Mr. Hinazumi: Well it will go through several reviews, various agencies will review it, and I do not want to be too presumptuous but we feel that we will be able to get it within that timeline. Mr. Chang: Okay. And just to have some clarification, refresh my mind or to inform the public, this area was zoned residential in the early 1970's? Mr. Hinazumi: Yes. Mr. Chang: Okay I think that will be it for now, I just wanted to get a little bit of clarification. Thank you, thank you Chair. Chair Furfaro: Thank you. Any members have questions at this time? Vice Chair Yukimura you have the floor. Ms. Yukimura: Do you see, David, that the only way to provide the kind of housing you want to provide is by developing this parcel? Mr. Hinazumi: Well in the K61oa area as I was explaining before, Waikomo, Wailaau, Wailani Road areas have transitioned from the camps to houses that people are in today and this is a natural progression getting into the K6loa Camp area which is in the State's Urban District /County General Plan. We want to follow the appropriate zoning and develop homes in there that the tenants and greater community can live in. Ms. Yukimura: So if you could do that both, you could have that remain a residential area, accommodate the tenants who live there now with a few others, and then also have fifty (50) houses in that parcel across the bypass road, would not be achieving Grove Farm's objectives? Mr. Hinazumi: That is a possibility but number one (1), as for the existing site, the homes are unfortunately susceptible to flooding, they are old, they need to be brought up to today's safety codes, electrical, plumbing...this is like I said the appropriate area closest to the town core. This Council has been great on being proponents of smart growth, you can bike and walk to the town core area, adjacent there is another commercial area that will provide a pedestrian access to... COUNCIL MEETING 77 MARCH 14, 2012 and talking about going to another parcel that is zoned Agriculture, we would prefer not to develop the agricultural land. Ms. Yukimura: I mean if you were to take care of the tenants you would be doing everything you are talking about on that land. You would be figuring out how to restore the houses, how to improve the electrical, not only the things that a landlord should do but also develop it for ownership or for some form of ownership. So nobody is talking about not doing it there but we are talking about doing it for the people that already live there as well as for others. Mr. Hinazumi: Like I said, for people that have been out there, the existing homes are scattered here and there. Like I mentioned, they are below the flood elevation level currently, it is all on cesspools so we will need to get that converted to septic systems, we have to do some grading work to get the homes up to the appropriate levels, and by doing the development we are providing new housing to replace the homes... Ms. Yukimura: So yes, nobody is arguing against that, but we are just wondering why you cannot include the tenants in the plan. Mr. Hinazumi: We are asking everyone to make alternative housing arrangements for the interim period until we can get the project completed. Ideally, like I said earlier, right now everyone is a renter, we want to turn everyone into a homeowner because of the benefits you own being able to transfer that property on and building up your equity. Ms. Yukimura: Well that is all wonderful and there are some people who may have to rent, so why is that not also an option? Mr. Hinazumi: Renting as is or renting in the future development? Ms. Yukimura: It is open. The only thing we are talking about is sitting down and talking about what kind of options and what the problems might be with certain options versus not. That is where the housing agency might be able to help develop some rentals, who knows. Nobody is, I do not think that is resolution for sure, and I as one (1) of the co- authors of the resolution am not saying it has to be done this way, we are just saying could you please be willing to sit down and think out of the box and see how you can include everyone in the solution. Mr. Hinazumi: Yes. Ms. Yukimura: So how many of the houses will be $220,000.00 of the fifty (50) that you are planning? COUNCIL MEETING 78 MARCH 14, 2012 Mr. Hinazumi: Basically in general we will comply with the County Housing Policy and there is a breakdown of so many need to be below the eighty percent (80 %) group and so forth and so on. As of right, now all that is is a limit saying for so many homes it can be priced no higher than a certain amount, it will be a case -by -case basis as we work with individuals who want to purchase. That is part of why we have asked everyone please go see the Housing Agency, get homebuyer ready, see what programs they have, and they need to be income qualified... Ms. Yukimura: But they may not be with the prices you are talking about, so then what are you going to do? Mr. Hinazumi: Like I said, we are open to discussing it, but we need to know where everyone is at. Ms. Yukimura: Well if you have a plan, what is your plan for how? I am presuming $220,000.00 is your lowest? Mr. Hinazumi: Yes. Ms. Yukimura: Alright. So how many units are going to be $220,000.00? What is your plan? Mr. Hinazumi: It is hard to answer right now because you have an affordable housing agreement that we work out and it gives you guidelines, and like I said, there is so many for this group, so many for this income group, and I am sorry I cannot answer your question right now... Ms. Yukimura: How many are going to be for less than eighty percent (80 %) if that is one (1) of the requirements? Mr. Hinazumi: Well we are going to follow what the Housing Policy says... Ms. Yukimura: What does it say? Mr. Hinazumi: Like I said, we need to take it on a case -by -case basis as people come in. Ms. Yukimura: No, it is not a case -by -case basis. How are you going to show us that you are meeting the Housing Guidelines if you do not have a plan to say how many will be affordable to what income level. COUNCIL MEETING 79 MARCH 14, 2012 Mr. Hinazumi: And I am sorry, maybe I am not understanding your question correctly but that is why we are going to have an affordable housing agreement that we get completed... Ms. Yukimura: Okay well you do not have one (1) so there is nothing tied right now and there is no Class 4 Zoning Permit for a public hearing or for people to speak about it, so where is there any oversight as to whether it is actually meeting the needs of the community? Mr. Hinazumi: Well when we go through... Ms. Yukimura: Or how many of the tenants can fit? How do we know? I mean I am not saying just leave them to the zoning requirements, we are saying show us how you are going to actually incorporate them into your development if that is what you say you are going to do and some of your Executives have said that, but we want to know how. Mr. Hinazumi: And that is why we need everyone to come in and either see us directly, see the Housing Agency, we need more background on everyone as well. Ms. Yukimura: Okay I am not getting the answers. I have other questions but I would like others to speak, Mr. Chair. Chair Furfaro: David, I want to make sure I understood your last comment. So if we were going to have a graphic of the eight (8) homeowners or the eight (8) occupants that are there now, and we were going to use the HUD Schedule, or modify the HUD Schedule whether it was for ownership or rent, you need them to come in to give you that financial information? Is that what you are saying? Mr. Hinazumi: Yes. As a developer when we provide affordable housing we need to have the buyers get screened and income qualified. So the first step that we have been advised is we will need to come up with an application and have people fill out that information, and then the Housing Agency is going to double check that information to verify that they are properly income qualified, and then they can purchase one (1) of the homes within that income range. Chair Furfaro: So that is why you are encouraging people to come in? Mr. Hinazumi: Yes. COUNCIL MEETING 80 MARCH 14, 2012 Chair Furfaro: I will ask this question before I recognize Mr. Bynum next. I guess it is the eastern parcel people are talking about as being another option. Do you know that that ag parcel has still not gone through the one (1) time subdivision ordinance when they put the road through? Mr. Hinazumi: That is a good question. I will have to do more research on that. But basically the tax map parcel, like it has been said, it is twenty -four (24) acres total. Chair Furfaro: And it is one (1) tax key? Mr. Hinazumi: Yes. Chair Furfaro: So when the road went through, did that count as subdividing that property? Mr. Hinazumi: So when we dedicated the land we donated the land to the County to do the bypass road. So when we did that, I guess a term you can kind of use is de facto subdivision where it carved it out. Chair Furfaro: We really do not know the answer? Mr. Hinazumi: We do not know the answer right now. Chair Furfaro: Okay. Mr. Bynum you have the floor. Mr. Bynum: I just want to follow -up on what JoAnn was asking about the housing policy. Actually that is the only thing I have right now are two (2) questions are interfaced with the Housing Agency. My memory of the Housing Policy would require eight (8) affordable units under the policy, two (2) of which would be eighty percent (80 %) below, two (2) — 80% to 100 %, two (2) — 100% to 120 %, two (2) — 100% to 140 %, percent of median income brackets. Does that sound accurate to you? Mr. Hinazumi: Roughly. The requirement is thirty percent (30 %) of your total project, and then basically just as you were saying, I believe it is a 20 %, 30 %, 20% breakdown. Mr. Bynum: And I would really like to, I saw Housing here earlier but I was hoping...because it is the thirty percent (30 %) that is the basic, but then there are provisions to go as low as fifteen percent (15 %), and I believe you probably qualify for those... Mr. Hinazumi: That is correct. COUNCIL MEETING 81 MARCH 14, 2012 Mr. Bynum: Integrated and single - family residential, and so I think if I am reaching back a few years, but I think the answer would be eight (8) units have to be priced affordable under the policy, two (2) of which have to be affordable by eighty percent (80 %) and below median income. And so I think the answer when saying how many at $220,000.00, I think it is two (2), that is the requirement. Mr. Hinazumi: And you are right that is the requirement, that does not mean we could not do... Mr. Bynum: More? Mr. Hinazumi: Yes. As we work with the Housing Agency and develop our affordable housing agreement, as we go out to sell the units, and that is why I am sorry I cannot answer definitively today this is how many units we are going to have. That is why I am saying on a case -by -case basis; if it worked out that we did more at a lower income group, fantastic. Mr. Bynum: Right. And I am sure the Housing Agency...you have to do two (2) at eighty percent (80 %) or below, you have to do two (2) at 80% to 100 %. I am sure if you wanted to do those two (2) at below eighty percent (80 %) they would be happy about and allow you to count those as meeting the requirement. And then the other question, I heard testimony today about we are going to work with this tenant to get them at Paanau, or we are going to work with this tenant, but under the Housing Agency Rules I do not know if you can go to the front of the line, that is another question I would have for Housing because that might be a solution, but what about those people who have met all of the criteria and are on the waiting list? I mean if you are next and you have been waiting and you say, I just want to make those comments. Mr. Hinazumi: And then just to follow -up on what you mentioned about Pa`anau, Pa'anau Village Phase 2 which is going to be coming up, there is fifty (50) units. We were contacted by the Housing Agency and they told us that there are applications available. At that time they only had twenty (20) applicants, and it is a fifty (50) unit project, and the deadline is March 23, so to apply that is going to need to happen. And like I said, last count when I received it last week was twenty (20) applicants. Mr. Bynum: Thank you for that answer. I mean that was my concern that we have to meet the criteria that the County has for access to those units, and if we can do that, great. COUNCIL MEETING 82 MARCH 14, 2012 Chair Furfaro: David, just so you know (inaudible). Members any more questions of David? Councilmember Nakamura. Ms. Nakamura: Hi David. I had a question about the discussions that Grove Farm has had with Peter Savio. I was wondering what was the proposal and what was Grove Farm's reaction to that proposal? Mr. Hinazumi: Like any offer, we need to review it and do our diligence. Basic gist of it was that the existing tenants would purchase it for appraised value, that they would have to come up with the money to purchase at appraised value and then after that the homes would get fixed up and it will be sold to them at cost. So there were existing tenants that would remain there, and then after that some vacant lots would be created and then sold off. Ms. Nakamura: And what was Grove Farm's reaction to that proposal? Mr. Hinazumi: You know we reviewed it and we felt that our plan, especially our marketing plan like I said to focus on the tenants and their families and the surrounding community, we had the best control to sell it to local folks, Koloa or outside of Koloa, so they can return home. Our finished product is going to be house and lot. One (1) thing we have learned is that you can sell a houselot but what happens after that is not that easy to build your home going with a single person getting their own private contractor doing it and then on top of that you need to furnish the home and put in all of your cabinets and whatnot. And so we could produce a turnkey product that people could sell, they purchase it, and they can move in. Ms. Yukimura: So you say that the tenants are at the top of your priority list, but what if they cannot afford your prices? Mr. Hinazumi: We need to keep all of our options open. We have also asked everyone not to just check in with the Housing Agency but Hawaiian Community Assets, like I mentioned they provide the home ownership classes for the County. The Community Services Specialist Desiree Vea, she has been great, she came out and talked at the January community meeting, shared a story about helping a single mother with two (2) kids maybe, one (1) of them disabled, helping her purchase a $395,000.00 house and pay a little under $800.00 a month. Now she is the, and those agencies are the forefront of knowing what is available, what can help people enough to purchase a home. Ms. Yukimura: Okay well I do not understand the attitude because what I am looking for is you folks making sure, working with...I do not agree with the idea that you go and see if the Housing Agency can help, see if COUNCIL MEETING 83 MARCH 14, 2012 Hawaiian Community Assets can help you, without actually working with a tenant to figure out a solution to their situation. Otherwise, it is just you are on your own basically. Mr. Hinazumi: And like I said, we brought Hawaiian Community Assets and they are contacting tenants directly. Ms. Yukimura: I know, but that is good, but still have you worked it so that the numbers can work...working with Hawaiian Community Assets so you can actually close a deal with that family? Mr. Hinazumi: And unfortunately we are not at that point yet, because she will need to meet with each of the tenants, find out their specific circumstances, and then we can help. Ms. Yukimura: But you can say that there will be a price that you will make it work for them? Mr. Hinazumi: We will do our best. Ms. Yukimura: Okay. Is Grove Farm willing to look at other alternatives than just evicting people and then building the development that you want, the fifty (50) units there? Are you willing to look at alternatives? Mr. Hinazumi: Well we have, there have been some alternatives that have been mentioned. We considered those and we feel that moving forward to provide homes up to fifty (50) families, the housing study that just came out that was in front of this Council indicates great need especially... Ms. Yukimura: Nobody is arguing with that, so the proposals would have to meet your needs as well which is the goal of providing fifty (50) single - family units, so that would be part of the plan. So do you have a problem with looking at those alternatives, that being open and flexible to some other arrangements that might allow you to do that? Mr. Hinazumi: And we have been open to listen and we will continue to listen to, as you say, alternative arrangements. Ms. Yukimura: That does not sound like it if you are just going to proceed with your Class 3 Zoning Permit. Chair Furfaro: Well I guess you got his answer right now, Vice Chair, and if I understand him, you are waiting for these people to come in for you to figure out how their schedules might fix the opportunity for them to acquire, COUNCIL MEETING 84 MARCH 14, 2012 whether it is for purchase or for rent. They have to actually come in and have some discussion with you? Mr. Hinazumi: Yes. Ms. Yukimura: And what I think the tenants are looking for is some kind of assurance that whatever you are talking about as a solution for them is actually going to work to the extent that they also feel that their needs are being met. A win -win means that you win because you say you are winning, in this whatever arrangement is worked on, and the tenants feel that they are winning because it meets their needs as well. I mean it is not somebody saying well you are winning by my standards of what I think you should be winning, it is really meeting each other's needs. So that is what this resolution is asking for, are you willing to sit down and I mean I think the reason why Peter Savio looked interesting was because he is a for - profit developer with a longtime history that has come up with very creative solutions for affordable housing. So it does not have to be him, but you are going to need some really creative thinking out of the box. If time is an issue, if money is an issue, I mean time is an issue because time is money, if there is a concerted effort on the part of the County and the community not to give you any guarantees but to say we will work with you within the structures of the law and within our responsibilities for due diligence, but we will work with you to make it happen as fast as we can and to make sure that you get what you need, why would you not be willing to sit down and see what those other possibilities might be? Mr. Hinazumi: And we are willing to see all possibilities. Ms. Yukimura: Okay then if you are truly willing then you will remove the eviction deadlines right now and sit down at the table with the County and the tenants and try to see what kind of solutions you might create together. Chair Furfaro: Give me two (2) seconds here please. Members, I want to remind you, if you are posing a question please give the individual time to finish the answer before you apply another question. That is the right way for us to do this with respect and aloha, so let us try to follow that rule. Let me see if Councilmember Yukimura will release the floor to you, Mr. Rapozo. Ms. Yukimura: As soon as I get my question answered. Mr. Rapozo: Well I have a point of order I guess, and let me just do it that way because I think the last statement that was made is very troubling to me. I would ask the County Attorney, if she is here, that last statement where if you are willing then you will pull out your eviction notices right now. I COUNCIL MEETING 85 MARCH 14, 2012 think and I just want to ask the County Attorney, I mean if that is fine then let us move on, but I am beginning to feel like... Chair Furfaro: David, would you give up your seat for a moment, and in our process this is a question that has been proposed as a point of order. Mr. Rapozo: Only because I am trying to save this County some money in a future lawsuit and I think everybody got the testimony. Chair Furfaro: I do plan to call up the County Attorney later, but Mr. Rapozo, pose your question. Mr. Rapozo: I think you heard the discussion. Ms. Clark: If the question is is it inappropriate to ask the question, I do not think it is inappropriate to ask the question. To mandate that some interference with the leasehold relationship, then you get into other issues. Mr. Rapozo: It was not a question, that was not a question, it was a comment that said if in fact... Ms. Yukimura: Chair Furfaro: No, it was a question. Excuse me, Mr. Rapozo has the floor. Mr. Rapozo: It was if in fact Grove Farm feels that way then they will pull their eviction notices now, that is what was said. I am worried about the perception from Grove Farm. I am worried because of the case law that I have here, and I think we all do. I am worried that we will get sued. I think we can refrain from those kinds of comments and stick to the resolution item and we will be okay. But I am starting to feel like there is what I think is legally called a veiled threat I think is what, as I am reading and educating myself on the case law I am getting concerned with that term veiled threat that may result in a lawsuit and I do not want to be a part of that. Maybe you can address the veiled threat, and if it is appropriate, Mona, go ahead and that is fine. Ms. Clark: I do not think that we need to limit the discussion that occurs, but I think that any action that is taken by this body should not seek to interfere in the private contracts or relationships between the parties. I mean obviously a lease is between two (2) private parties, you have the State landlord- tenant law that sets out certain parameters, you have the contracts clause of the United States Constitution which does not allow the government to come in as in HRPT versus Lingle and set out a law that targets a particular landlord and COUNCIL MEETING 86 MARCH 14, 2012 sets the parameters what has to be in that landlord's leases, then you get into trouble with enacting an invalid law. So obviously that is not a road that the County wants to go down. Mr. Rapozo: I agree. Ms. Clark: I think you have a different issue as far as a resolution which is suggesting that certain things take place but does not mandate anything. I think you would want to avoid any implication that you are going to use zoning laws to achieve an effect other than what they are intended for. And so I would say that it is a caution. If you want me to go on with my other comments I would do that now, or if you want to go back to the other question? Chair Furfaro: I am going to let Councilwoman Yukimura still have the floor. You have been most helpful in clarifying the point of order that Mr. Rapozo raised. Thank you very much. Vice Chair you still have the floor. Ms. Yukimura: Thank you. So my question is are you willing to, if you are really willing to sit down and work on some alternatives, why would you keep the eviction notices in place and keep moving toward your Class 3 Permit because it seems like you are not really willing to look at alternatives? Mr. Hinazumi: Well we have looked at alternatives that were mentioned and we would like to proceed with our plan, and like I mentioned, we started with a four (4) month notice, and we gave an additional thirty (30) days seeing that folks who had made arrangements but still needed time to move, so we have done that. We will keep that under consideration as we get towards the end of this next thirty (30) day period. We also want to balance the fact that there is tenants, one (1) couple moved out and already expressed their interest to purchase, other tenants have given us a lot of family names of people that want to purchase in there, and we want to balance that with getting the project sooner than later because "knock on wood," the interest rates we have today are at historical lows. When those start to go up that could make the, given everything talked about as far as affordability, that could make the difference between somebody being able to purchase or not, so that is what we are trying to balance here. Ms. Yukimura: Okay so you are not willing to look at alternatives anymore. Mr. Hinazumi: Well the only alternatives we have are the Peter Savio or developing on agricultural land. Ms. Yukimura: But there are alternatives for converting that ag land to urban residential, why would you not look at that? I mean when you COUNCIL MEETING 87 MARCH 14, 2012 leave the eviction notices like they are, they are basically saying it is like holding a knife over people if you do not move. Do you know how much stress that is especially to elderly people who have lived in a place for thirty (30) to fifty (50) years? I mean I just have to think about my parents and they would have options, but even if they have options, moving is a big stress. So I do not get it that you are not willing to at least for a limited time say okay we are going to remove the eviction notices and we will sit down and we will see what kind of options we might be able to create together with the tenants, with resource people like Peter Savio, with even the County people, and Hawai`i Community Assets. All these people working together, do you not think that maybe there will be other alternatives to work with? Mr. Hinazumi: That is when I communicate with all of the tenants, I need to hear that back, what is the specific solution. Ms. Yukimura: David, it is not going to come from one (1) tenant one (1) at a time, it is going to come from a group of people sitting around a table saying how can we solve this problem, how can we meet your needs, Grove Farm, how can we meet the tenants' needs, how can we make it work for the long range community? You know Koloa Estates there were lots that A & B was very good in trying to give to Koloa people, well do you know what has happened to them? They are worth $3 million to $5 million now and who is living in them? I mean there is long -term issues if you really want people to live in the Koloa area for a long time, I mean local people and generations, we have to think about all of this and we as the decision makers who set the housing parameters have to think about this and it has to be set -up at the time real properties are developed and sold. Chair Furfaro: Okay on that note and within our own rules we should be posing questions to you, we have posed a lot of questions and I will like to ask other Councilmembers at this time if they have questions. Would you yield the floor, Councilwoman? Thank you. Mr. Chang and then Mr. Rapozo. Mr. Chang: Thank you Chairman. I want to let the viewing audience and the people know in here that there is another side to the story, and I am going to ask David if he can tell us. Throughout the course of the day there have been and through the course of the weeks I guess, I mentioned earlier about the fifty (50) or sixty (60) or so people that are on the list and I just want to say I can recognize many names, I can recognize many people, but I wanted to rest assure the public that many of these are first -time young Kaua`i local people that also express the desire of living in a single- family home in a nice welcomable clean community with solar water heating. It is like for many on the other side a dream come true or a possibility, can you expound on the fact that on the other side there are people that are desiring to be in a single- family home that work in the greater Kalaheo area, just people from the eastern corridor and the north that COUNCIL MEETING 88 MARCH 14, 2012 works closer to the west side, or the west side people that work toward the east and the north. There is a lot of people that are really planning ahead as to an opportunity, can you expound on the requests or the demand if you will? Mr. Hinazumi: Yes. I have been very fortunate to meet a lot of people in the Koloa area who grew up there, have families, they have children either living with them or away at school who want to come back home to Koloa. So there has been people in the community that have expressed their interest. We cannot find single - family housing in that area. I had a good friend that was looking for a place a little while back but he was not able to find anything in Koloa where he could return back to his home town, so this is that opportunity. Mr. Chang: I am visualizing because this Council has had many discussion. When the economic times turn, you mentioned a little bit about lower interest at a historic rate, given the fact that hopefully barring any natural disaster or any catastrophe, if you will, there is a lot of demand for housing out in that area and I guess what I am saying and I will try to pose this in a question, there are many that did not show up here, but I can rest assure that you know your tenants and you know perhaps a lot of those that signed the petition, but if you can verify I believe a lot of the people that like the houses certainly know the people that are concerned about the tenants, but it just seems as though local people like local people and we do not want to be tied into a situation that we are tearing the community apart. Would you not say that a lot of people on one (1) side knows the other people on the other side? Mr. Hinazumi: Yes, that is correct. There are people in the adjacent subdivision throughout Waikomo Subdivision that are interested to purchase so their families can grow in Koloa or like I said return home to Koloa. Mr. Chang: Thank you. Chair Furfaro: Mr. Rapozo. Mr. Rapozo: Thank you. Dave, has Grove Farm explored the possibility of building on the other side of the road? That is one (1) of the options you just talked about, going on ag land, and have you explored it? Is it feasible? Let us not beat a dead horse. If you explored it and it is not feasible for whatever reason, let us know. Mr. Hinazumi: Yes, we have explored it and it is not feasible because it is agricultural zoned. There is the stream that passes through that property as well. The usable area is smaller, we do not feel we can get the full fifty (50) units, I could not tell you the exact number we could get in there. But we have COUNCIL MEETING 89 MARCH 14, 2012 looked at it and we do not feel that it is a feasible solution in this timeframe that we are trying to get these houses out. Mr. Rapozo: Okay and that is fair. Like I said that is fair, so that option as far as Grove Farm is concerned is not available. The next option was Savio or whatever, he was going to come down and buy the land, fix them up and sell them back to the tenants. Is that what the plan was? Mr. Hinazumi: Yes. Mr. Rapozo: So he will come down, he will buy the property from Grove Farm? Mr. Hinazumi: I am sorry, when he talked to us directly at the first meeting that we met at, he said, and he made it clear, that it is the tenants that need to buy the property. Mr. Rapozo: Okay, so the tenants come up and buy the property from Grove Farm? Mr. Hinazumi: Yes. Mr. Rapozo: So what does he do? He just brokers the deal? Does anybody have this in writing? Does anybody have this deal from Savio in writing? JoAnn you have it? I see you nodding? Ms. Yukimura: No. Mr. Rapozo: I just want to know if anybody has it in writing because you are answering and I see a head nod that way. I am not going to sit here and listen to who is right, who is lying, who is not. Does anybody have it in writing. If not, that is fine. I guess my point is this, Dave, we are here discussing a resolution to reach a win -win, Councilmember Yukimura said it best, it is not right to have somebody win by somebody else's standards, that works for both sides. Likewise, the tenants should not be agreeing or winning in this issue based on a standard set by Grove Farm. Likewise, Grove Farm should not be winning by standards set by anyone else. And that is why I think I went to one (1) and I forget which one (1) it was, it was a business seminar, and it said the reality is there is never a win -win. There is a compromise but nobody ever gets all that they want, that is just the way it works because somebody has to give and somebody has got to take. So I guess rather than prolong the agony if option one is out, and based on what you know of Savio's proposal, that is not feasible for Grove Farm as well? Mr. Hinazumi: That is correct. COUNCIL MEETING 90 MARCH 14, 2012 Mr. Rapozo: Okay. So that leaves really what is left is how do you accommodate the tenants that are currently living at the camp? From what I have read and from what I have seen, you folks have made some accommodations to some tenants. I am not sure if everybody got the same offers and it sounds like it differs from tenant to tenant, but that is where we are at, I think. What is Grove Farm willing to do to make this transition the least painful? No one is going to make Grove Farm move and build your project on ag land; no one is going to make you do that. No one is going to make you agree with whatever Savio wants to do, that is not going to happen. Grove Farm, at the end of the day, will have the decision to make, whether popular or unpopular, that is the decision that will have to be made by people outside of this seven (7) sitting on this table; that is your guys' kuleana. Obviously the result of your decision, the people will make the ultimate decision whether or not it is acceptable for the community. At the end of the day we are going around this table and saying can you, can you, can you, can you, but in all reality, it sounds like the decisions have been made. You have, and I have spoken to the Housing Department, I actually spoke to the Mayor and it sounds like that Grove Farm, and this is the question, Grove Farm, are you constantly working with the Administration, Housing Department, Kaua`i Housing Development Corporation, are you folks still in discussions with that to try to get this transition as painless as possible? Mr. Hinazumi: Yes. Mr. Rapozo: That is continuing today? Mr. Hinazumi: Yes. Mr. Rapozo: And Kaua`i Housing Development Corporation, you talked about the applications they have, possibly twenty (20) tenants, they have thirty (30) vacancies, and is there an attempt by Grove Farm to try to get some of these tenants into Pa'anau, the new unit that has yet to be built? Mr. Hinazumi: Yes. Mr. Rapozo: That is all I have, Mr. Chair. I just wanted to find out where we are at because there are a lot of hypotheticals, but if Grove Farm...if they have explored it and it is not feasible, then it is what it is. Chair Furfaro: Okay. Actually at this point I would like to excuse you for a moment if I could, I would like to bring up our Housing Agency. I want to hear a little bit from them. COUNCIL MEETING 91 MARCH 14, 2012 GARY MACKLER, HOUSING DEVELOPMENT COORDINATOR, HOUSING AGENCY: Good afternoon Council, Gary Mackler for the Housing Agency. Chair Furfaro: Gary, could you just give us an overview of how the Housing Agency, as well as the Administration, has been working to some solutions here and what options are out there. We heard some of this bumping lines of waiting lists for the next phase of Pa'anau, how does all of that work and what discussions have occurred so far? Mr. Mackler: Okay. Several months ago David Hinazumi came and sat down with me and asked us about what kind of resources we have at the Housing Agency both in terms of homeownership and rental housing. Since that meeting we have had several conversations and we share our information with him about how people can get started in our Home Buyer Loan Program. We share information about how folks can take advantage of the rental housing opportunities that are pending, and Pa'anau Village Phase 2 which is a fifty (50) unit rental project, a new project, is taking applications now. I do want to mention that the deadline is no longer March 23, it is actually March 30; another press release went out today to all the media to let people know about the specifics about the property, the rent structure, the income limits, when the lottery is scheduled, so on and so forth. We are anticipating that the earliest occupancy at Pa'anau Village Phase 2 will be June of this year. In Phase 1 of Pa'anau Village we are at ninety -five percent (95 %) occupancy, there are a few units that are open and available at this time. In terms of homeownership, in terms of the resources that we have that we can make available through our homebuyer loan program and through the financing that we can offer through that program, it really requires people to come in and learn about the program and learn about how they can get started. Preparing for homeownership, I think you all realize, does take some time and many people that come to us initially are not buyer ready, and that is one (1) of the driving forces behind the program is to help them learn how to become buyer ready through homebuyer education, through credit counseling, and helping individuals one by one. And so that is the kind of information we have been sharing up to this time with David, and generally speaking, those are the resources that we offer as a Housing Agency. Chair Furfaro: Mr. Bynum. Mr. Bynum: Hi Gary, thanks for being here today. Earlier, I do not know if you heard it, but the question was about how many units would be covered under the housing policy, and from my memory, and I know yours is better than mine, fifty (50) units, single - family, integrated, probably is going to be a fifteen percent (15 %) requirement. My calculator says that, I am sorry? COUNCIL MEETING 92 MARCH 14, 2012 Mr. Mackler: Let me just say that this project will be, is applicable to the requirements of Ordinance 860, our affordable housing ordinance. The general rule in that ordinance is that you are subject to a thirty percent (30 %) affordable housing requirement. On a fifty (50) unit project we are talking about fifteen (15) units, those units are allocated across different income brackets as you know. There are incentives that are potentially available to the applicant which can be given for integration, as you had mentioned, and also for building single - family as opposed to multi - family housing. Mr. Bynum: Right, so this would be a single- family residential development so we get that incentive, it will integrate the affordable units along with market units so it will get that incentive, and my recollection is that would bring the affordable housing requirement to fifteen percent (15 %). Mr. Mackler: Well we are, I would agree with you on the integration incentive; I am not prepared to say that they are eligible for the single - family incentive at this time because we are in discussions with them about how our ordinance is drafted. It indicates without CPR ownership, and this property I understand is being CPR'd or not subdivided, so there is a question still that was unresolved over that incentive. Mr. Bynum: See, that is why we have you there at the Housing Agency. But for the sake of discussion let us assume the requirement is eight (8) units and then that is divided below 80 to 100, 100 to 120, 120 to 140 correct? Mr. Mackler: Correct, that is correct. Mr. Bynum: So there would be two (2) in each? Mr. Mackler: _ Approximately, yes. There would be two (2), it is a 20, 30, 30, 20 allocation over the required units. Mr. Bynum: And so there has been this discussion about what it will give tenants. We will give the current tenants at the camp first right and so this is where I need you to help me, when we make those units available we have kind of a waiting list and a criteria right? It is not the developer, and that is a question, is it the developer who determines who gets those affordable units under 860 or is it our Housing Agency that helps identify those (inaudible)? Mr. Mackler: Two (2) things to say about that. First of all, I think that the developer does have the discretion to give a preference to those who are living there now in terms of selling units there. What you are referring to is COUNCIL MEETING 93 MARCH 14, 2012 what is called our homebuyer list which is a list that we maintain of people who have gone through homebuyer education classes and counseling to become mortgage ready and to prepare themselves for future opportunities that come along. The idea of the list is to give it to developers who are producing affordable housing and to give those folks who have been preparing a preference for access to those units. So it could be one (1) or the other or it could be a combination of the two (2) and I think that under the circumstances I believe Grove Farm would have the discretion there as to who is given preference. Mr. Bynum: And I think you answered my question. So any developer who has units made available according to Ordinance 860 can either use the list that you provide or they can identify their own buyers as long as they meet the income criteria? Mr. Mackler: Yes. And just let me also mention, the whole concept of the list is to help the developer to have people that are ready to go. I do not want to use win -win because I do not think I am supposed to use that now, but it is something that marriages the preparedness with the opportunity, and that is what we are striving to do with the list. Mr. Bynum: Right and you have answered that question. My other question has to do with Paanau, right now there are twenty (20) people on the list for fifty (50) units? Mr. Mackler: Okay let me tell how you that process works. We have, there is, and by the way this is a marketing process that is being done by Kaua`i Housing Development Corporation through their management agent Hawai`i Affordable Properties. Anybody can apply and anybody that does apply up to the deadline of March 30 will have their application become part of the lottery which will be done on April 12 at the Koloa Neighborhood Center. What that will do is establish an order for how the management company will work through those applications for lease up. We really want to give everybody a chance to apply and have a fair opportunity for access to those units because a lot of times you may hear about the opportunity weeks before somebody else and just because of that it does not necessarily mean you should have a greater chance of getting those units. So we always try to use a lottery, we think it is the fairest approach to giving everybody a fair opportunity for those units. So there will be a lottery conducted in April and from there they will be working in the order that is established to work through those applications. Mr. Bynum: So a current tenant of Koloa Camp can obviously participate in that process, but Grove Farm is really not in a position to guarantee that that person will be offered housing? COUNCIL MEETING 94 MARCH 14, 2012 Mr. Mackler: Correct. Mr. Bynum: Thank you. Mr. Mackler: But I would really encourage those who look at Pa'anau Village a housing opportunity for themselves to apply before the deadline so that they do get at least into the lottery. Typically it takes a hundred or more applications to fill fifty (50) units. There are income limits and sometimes people, at the time they submit their application, are income eligible, but they may get a second job, they get more hours by the time it comes to sit down with the management company, they may be over income, it can happen, and so it is really an opportunity to take right now. Mr. Bynum: I agree with you. Thank you. Pa'anau is a wonderful location, I was there at the dedication or the ground breaking. The Hawai`i Housing... Mr. Mackler: Development Corporation. Mr. Bynum: They do a great job of managing those units that we currently have, but you barely answered my question. On the site Grove Farm has the availability to give first right of refusal to people they identify. At Pa'anau you have to engage in this process. Mr. Mackler: Yes. Mr. Bynum: And you may or may not have an opportunity to rent. Mr. Mackler: Correct. Mr. Bynum: Thank you. Chair Furfaro: Thank you Gary. Councilmember Kuali`i. Mr. Kuali`i: Aloha and mahalo, Gary. Mr. Mackler: Aloha. Mr. Kuali`i: Just a quick question because we were talking about the sales in Pa'anau 2, but what about Pa'anau 1. You said ninety -five percent (95 %) occupancy and there is a few open right now. Mr. Mackler: There is. COUNCIL MEETING 95 MARCH 14, 2012 Mr. Kuali`i: So, to get into Pa'anau 1 right now there is no waitlist? Mr. Mackler: I do not think there is much of a waitlist; I think it is very small if at all. Mr. Kuali`i: So there is a waitlist? I know Councilmember Chang mentioned that a little earlier. Mr. Mackler: There normally is a list, I have not checked with management on the current status of their waitlist. There typically is one (1) but it does not necessarily mean that those who are on a waitlist are going to make that choice to go in at this time either, so even if there is a waitlist, it still would be wise to go in and talk to the management staff. Mr. Kuali`i: And that is for rental? Mr. Mackler: Correct and Pa'anau Phase 2 is rental. Mr. Kuali`i: Oh it is also rental. Mr. Mackler: It is all rental. Mr. Kuali`i: Thank you. Ms. Yukimura: I have a question. Chair Furfaro: Thank you for making yourself available. Ms. Yukimura: I have a question. Chair Furfaro: One (1) moment, Gary. I am going to recognize Vice Chair Yukimura. Ms. Yukimura: So in the twenty percent (20 %) that has to be eighty percent (80 %) and below median income, what is the sales price? Mr. Mackler: I do not have those numbers in my head, the information is downloadable on our County website under the Housing Agency Document section. Ms. Yukimura: Is it over, is it $220,000.00? COUNCIL MEETING 96 MARCH 14, 2012 Mr. Mackler: For eighty (80) and below I think it is fairly close to that number but I do not know the precise number. Chair Furfaro: $228,700.00. Mr. Mackler: Thank you. Chair Furfaro: With 5.5% it could be lower. Mr. Mackler: It could be depending on the interest rates, that is right. Ms. Yukimura: That is at eighty percent (80 %), but if they are actually forty percent (40 %) or sixty percent (60 %), it would be hard for them to do that? Mr. Mackler: It would be very difficult, correct, to get financing, I would say. Ms. Yukimura: And if it is in the discretion of the developer, they can say if you do not cooperate with us now, we will not give you first right of refusal? Mr. Mackler: I am not going to speak for them in that regard. Ms. Yukimura: But it is in the developer's discretion? Mr. Mackler: Whether to give them a preference to have a first opportunity for those units, I would think it is. Ms. Yukimura: Okay. Thank you. Chair Furfaro: I would say thank you (inaudible). Mr. Mackler: Thank you. Chair Furfaro: Are there other questions for the representative from Grove Farm? Seeing none (inaudible). Mr. Kuali`i: Just a quick question because Councilmember Rapozo seemed to summarize as he saw it, and then he made the options obsolete, if you will, but I think when I heard you answer about the option on the rezoning of the ag you did not say flat out that Grove Farm believed that it COUNCIL MEETING 97 MARCH 14, 2012 was not feasible, period, you said Grove Farm felt it was not feasible in the timeframe we have set. Mr. Hinazumi: That is correct. Mr. Kuali`i: So if there was more time, and I know Councilmember Nakamura was talking about the cost associated with all the plans and the delay and time, but it would be potentially more costly, but it is possible and it is a decision you are making in the timeframe you have set. Mr. Hinazumi: Yes. Mr. Kuali`i: So it is not that it is not feasible it is just Grove Farm saying it is not feasible in the time frame we have set? That is what you said. Mr. Hinazumi: Yes. Definitely not in the timeframe that we set, and unfortunately I cannot answer you if it is feasible down the road until the studies come out, and as Coouncilmember Nakamura mentioning a lot of studying that needs to be done to see if that site will work. So I am sorry, I cannot answer that. Mr. Kuali`i: But I am just saying that it is a choice that Grove Farm is making, would you not say then that it is a choice you are making at this point but it is not with the complete determination on feasibility? Mr. Hinazumi: It is a decision we are making now, but I cannot tell you if it is feasible even down the road. I am sorry, I cannot answer that. Mr. Kuali`i: That is fine. Thank you. Chair Furfaro: Thank you, David, and I believe when I first asked you if we had any more questions, now we have several more questions. Mr. Bynum and then Vice Chair Yukimura. Mr. Bynum: Dave, are you familiar with the Land Use Research Foundation? Mr. Hinazumi: Yes. Mr. Bynum: And they have submitted testimony that is quite detailed about the tenants and Grove Farm, so did you participate in the preparation of this testimony from the Land Use Research? COUNCIL MEETING 98 MARCH 14, 2012 Mr. Hinazumi: No. We did talk with the Executive Director David Arakawa. Mr. Bynum Because there is a lot of detailed information in this testimony about what Grove Farm has done and what tenants are doing, and so is Grove Farm a funder, one (1) of the funders of the Land Use Research Foundation? Mr. Hinazumi: We are a member. Mr. Bynum: So you provide funding for them? Mr. Hinazumi: If you consider paying dues funding, I mean we pay dues. Mr. Bynum. I just wanted to clarify because there is all of this detailed information. I know David Arakawa, we have talked many times, we often... I cannot remember a time we did not get testimony on a land use resolution or bill from, and I actually find it helpful because it is kind of like the developer's perspective on land use, would you agree on that? Mr. Hinazumi: Yes. Mr. Bynum: Okay. Thanks. Mr. Hinazumi: Thank you. Chair Furfaro: Last question, Vice Chair Yukimura. Ms. Yukimura: So you said that the property on the other side is not feasible in this timeframe, what is that timeframe? Mr. Hinazumi: As soon as we can start moving on this project. Ms. Yukimura: That is right. So you are using your Class 3 zoning as the timeframe by which to judge the feasibility of the other parcel? Mr. Hinazumi: No. Ms. Yukimura: Well what is the timeframe' How many months, five (5) months, ten (10) months, one (1) year that you are looking at? Mr. Hinazumi: I am sorry, timeframe to start this project? COUNCIL MEETING 99 MARCH 14, 2012 Ms. Yukimura: It is your wording, it is not feasible to develop this project in this timeframe, so what timeframe are you referring to? Mr. Hinazumi: Right away. There is this pent up demand for housing now, and like I mentioned, the interest rates are historically low. This Council had the Executive Director of Hawaiian Community Assets come in and say now is the time to buy. Ms. Yukimura: So what is that now? So then maybe the question should be what is your timeframe for developing the parcel that you are looking at for Koloa Camp right now? Mr. Hinazumi: Soon. Ms. Yukimura: Developers do not develop with soon. Mr. Hinazumi: Months? Ms. Yukimura: Yes, how many months? When do you plan to have those units available assuming that things go as you expect? Mr. Hinazumi: We are hoping within the next six (6) to nine (9) months we can get the units turnkey. Yes, within the next six (6) to nine (9) months. Ms. Yukimura: So in nine (9) months you will have them ready for sale? Mr. Hinazumi: That is what we are hoping for. Ms. Yukimura: And how do you say that, so how do you know that it is not feasible if you have not done the studies? Mr. Hinazumi: I am sorry, I did not say it was feasible, I am saying I cannot answer whether it is feasible or not. Ms. Yukimura: I did not hear that. I heard you say it is not feasible. Okay. So it may be feasible to develop but you do not know? Mr. Hinazumi: That is correct. Ms. Yukimura: Okay so that is what we were asking, whether you would be able to sit down and look and see if it is feasible and see how COUNCIL MEETING 100 MARCH 14, 2012 much time it might take and see if somehow, because nobody is talking about not producing fifty (50) houses for people to buy. I do not know what cost yet, I have not been able to pin that down, but nobody is talking about not doing that. We are talking about how can we do that, but you are not willing to look at that because you have decided that your timeframe of six (6) to nine (9) months and that is it. Mr. Hinazumi: That is correct. We have explored that option and we have ruled it out as a feasible solution at this point. Ms. Yukimura: Okay. Thank you. Chair Furfaro: David, I am going to excuse you for now. Mr. Hinazumi: Okay. Thank you. Chair Furfaro: I will ask the County Attorney to come up. May I ask you to introduce yourself again for the record. Ms. Clark: Sure, I am Mona Clark, Deputy County Attorney. Chair Furfaro: Mona, references have been made to this testimony we got from the Land Use Research Foundation of Hawai`i, have you seen that? Ms. Clark: I have seen some of it, yes. Chair Furfaro: In particular, I am looking at paragraph 3, well it seems that the resolution partially well- intended has unfortunately set dangerous legal precedent by the County Council in using its powers to attempt to influence, intervene, interfere with private contracts. As I said to someone who gave statements earlier this morning, the vehicle here at the Council is to try and hear public concerns. I had heard you give us a little guidance earlier, but can you give us any words of wisdom as it relates to what I perceive here as telling us beware County Council you could expose the County to liabilities. Ms. Clark: Right. Well basically the lease as I said are private contractual relationships. The landlord- tenant law set by State law, you do not want to get into a position of passing a law or an ordinance that interferes in that contractual relationship. As mentioned earlier, that one (1) case HRPT versus Lingle involved some State legislation where the State targeted a particular landlord who had relationships with various tenants and tried to say what criteria had to be used when they renegotiated the rental amount every ten (10) years. That law was held to be invalid as an interference with the contracts clause of the COUNCIL MEETING 101 MARCH 14, 2012 Constitution. So you do not want to get into that sort of situation where you are telling a landlord how their lease has to read or what the term of their lease has to be; that is an area you do not want to venture into. The resolution itself though does not mandate any interference such as that. I think you want to avoid the appearance that anything that you are suggesting is going, you do not want to have it perceived that... Chair Furfaro: It is a mandate. Ms. Clark: That it is a mandate or that you are asking Mike Dahilig as the Planning Director to enforce the zoning laws, obviously that is his job anyway to begin with, so there is nothing being added there. You do not want a misinterpretation of that is some kind of veiled threat, that is obviously not an area you want to go in to. I think that you should be careful. You say for example that the Koloa Camp is a nesting ground for endangered Hawaiian ducks, I would hope that you had a report or some survey or something from an authority that you can rely on for that statement. But if it is just a hearsay statement that somebody has made, I would not put that in a resolution and state it as fact, because somebody could later rely on that and come back and say well the County said this was the situation. So if you have verification for that then that is fine; if you do not have verification I would say you should take it out. As far as picking a particular developer and saying that person should have precedence over other parties, I do not think that is a wise move either. You could potentially have some other developer come in who has some plan that you would also want to consider or want to cooperate with, so I would not single out one (1) person as done in this resolution. Chair Furfaro: That could be interpreted as preferred treatment? Ms. Clark: Right. So those would be the three (3) areas of caution that I would suggest to you. Chair Furfaro: Thank you, Mona. Let me see if I have questions from the members. Mr. Bynum did I see your hand go up? Mr. Bynum: Yes just clarification. The Koloa duck, the specific developer, what was the third? Ms. Clark: I do not think you want to give the impression by directing the Planning Director to take action that he is already going to take on his own. You do not want to make that, you do not want the possible misinterpretation that that somehow is going to be used to effect a result separate from the zoning purposes. COUNCIL MEETING 102 MARCH 14, 2012 Mr. Bynum: Okay I would like to look at that one (1) specifically because we are all doing our mark -ups here right? Ms. Clark: Sure. Mr. Bynum: I read that three (3) or four (4) times so I am going to read it. Be it further resolved that the Council requests that the Planning Director examine the Kaua`i Comprehensive Zoning Ordinance and other laws to ensure that both the spirit (inaudible) and spirit of the law is not compromised by allowing Grove Farm to proceed with its proposed fifty (50) unit development without having obtained special use permits or holding a public hearing on this matter. Would we not expect him to do that? Ms. Clark: Right. I think he is supposed to fulfill his job requirements as far as the zoning ordinance equally in this case as in other cases. I do not think that this case should have special treatment to achieve a different end than... Mr. Bynum: That is the Planning Director's job right? Ms. Clark: Yes that is his job, so I do not think you are adding anything by putting it in there because you are not directing him to do anything and you could not direct him to do anything. Chair Furfaro: But you are saying by putting it in there it is as if we are holding this development and that individual to a higher standard than what is already expected of him? Ms. Clark: I think it could be misinterpreted in that way and I do not think that is something that you would want to have happen. Mr. Bynum: See I did not interpret it that way, I just saw it as hey Mike look close at this and make sure Class 3 only is okay, make sure that there is not some other but I understand your point. I know the Planning Director does that routinely. Ms. Clark: Right. Mr. Bynum: So it does not add a lot and I hear your caution that it might be misinterpreted, I did not misinterpret it. Thank you for that answer. Chair Furfaro: Vice Chair Yukimura. COUNCIL MEETING 103 MARCH 14, 2012 Ms. Yukimura: I do not have a problem with removing it, but there are cases where public officials do not do their work and a resolution oftentimes just calls requests, this is not a direction. It is like make sure we are not overlooking anything, that is what the request is. So is there really a legal problem with doing it? Ms. Clark: If something happened further down the road where it looked like it was getting different treatment and you had this in the resolution, I think it has the potential of causing trouble. It is not necessarily going to, there is not going to necessarily be any undue delays, I am just saying that since it does not add anything and since that is his job to do anyway, I do not think you benefit from putting it in there. Ms. Yukimura: Okay. But if you are just asking him to do the job, you are not asking him to give any special treatment. Ms. Clark: Someone could question why it is in this resolution to start with. Ms. Yukimura: Do you think it would be something that would not be upheld in court? Ms. Clark: I think this resolution is not going to mandate that anybody take any particular action, it is simply requesting that people do things. So the only problem that will arise is if something happens down the road where a level of scrutiny was applied that would not be applied in other cases and then they would look back at this resolution and say was this a policy that was set in motion at that point, and that, I do not think, is something that you would want to do. Ms. Yukimura: Okay. Thank you. Chair Furfaro: Mr. Rapozo you have the floor. Mr. Rapozo: But you are saying it is not worth the risk? Ms. Clark: That is right. Mr. Rapozo: Did you have a chance I know you said you looked at some of the LURF testimony, but more specifically that Ukumaruku Corporation case that they cite. It is Ukumaruku Corporation versus Worrall and that is the case that I was referencing earlier pertaining to the Manoa Art Gallery where the Manoa Neighborhood Board went and did a resolution. It was pretty much a similar circumstances where the landlord, which was Ukumaruku COUNCIL MEETING 104 MARCH 14, 2012 Corporation, decided or ordered the Manoa Art Gallery to vacate because they had an issue with the lease. The Neighborhood Board passed a resolution and basically taking the side of the Art Gallery and encouraging Ukumaruku to negotiate with the Manoa Art Gallery, and they obviously filed a lawsuit, they sought $600,000.00 in damages, and at the end of the day they reached a settlement. Ironically, the Executive Director for the Land Use Research Foundation, which is a lobbyist groups that is no secret, they are professional lobbyist, and Dave is still here, yes your dues do fund the lobbyist activity, it is not a secret. I do not know why everyone is so shame about it, that is what they do, they are paid lobbyist, but they come to us and they highlight these cases to warn us and I appreciate that. I do not always agree with LURF's positions but in this case I do, that in fact he talks about the, and I heard you mention it earlier, Mona, the veiled threat, and that is where I am kind of worried about with this resolution. But anyway, ironically the Executive Director of LURF, which is David Arakawa, was the Corporation Counsel of the City and County of Honolulu at the time, so he is very familiar with the case. He was the lawyer, he was the County Attorney for the City and County of Honolulu when this case went. Although he only relies on recollection and he provides that statement, the settlement judge proposed a settlement order which would have required each of the several attorneys who were members of the Manoa Board to pay $10,000.00 a piece toward the settlement, they did not require payment from the non - attorney members, so just JoAnn would have to pay, but they required the City to pay twice the total amount imposed on the attorney members of the Neighborhood Board. So I mean it was serious enough where the County ended up having to pay some money. So that is kind of where I am at, Mona, and I look to you. I do not know what the final version of this will look like. I have highlighted all the sections that I want to remove because I am afraid. I think we can still get there. Do you believe, and the one (1) I kind of have concern with, be it further resolved, and it is probably unfair, Mona, to have you on the stand and not be able to digest it, and if you need time, fine, I do not have a problem. It says, be it further resolved that Grove Farm is hereby requested to withdraw their eviction notice in good faith to allow for deliberate and thorough examination of the alternatives to Grove Farm's original plans: I am kind of concerned because yes, it does not mandate, but when I read this testimony, I am concerned that it might be construed as a veiled threat as well. Ms. Clark: I do not see that as a veiled threat. I think it is when you start citing other County powers that you can get into the veiled threat area. If you simply keep it to the bare bones of saying we would like them to reconsider and to take into account the tenants' positions, I do not see a veiled threat there. When you start talking about other, if you start talking about the County powers and how they are going to be used in relation to this situation, then I think you have a veiled threat situation. COUNCIL MEETING 105 MARCH 14, 2012 Mr. Rapozo: Yes. I mean if it said, it is hereby requested to reconsider their actions and their activities, I probably would not have a problem, but I think when we say, request to withdraw their eviction notices, I do not know, it just seems a little firm on the County's side saying hey we want you take back your...because it is their right to do. Ms. Clark: I think if you try to put any force behind it to make them take that action, then I think you can have potential problems. Mr. Rapozo: Yes. Ms. Clark: If you just say we would like you to do, I do not think you have an issue. Mr. Rapozo: Thank you. Chair Furfaro: Members, we have heard from the County Attorney. It is my hope, and obviously I have heard from Mr. Rapozo, and sounds like Mr. Bynum and maybe Mr. Chang, we might have some amendments to this particular resolution. And so what I would like to do is plan on taking a recess for those of you that want to look at some amendments, and then get to the business of those amendments, and then eventually the amended resolution if it turns out that way, and a vote. It has been five (5) hours almost of dialogue today and we still have a full agenda plus we have four (4) legal executive sessions to get through. So I hope you ate a hearty lunch, we might be here for a long time. On that note, we are going to take recess and we will take a caption break. There being no objections, the meeting recessed at 4:47 p.m. The meeting reconvened at 5:26 p.m., and proceeded on its agenda as follows: Chair Furfaro: We are back in session and a few house keeping items here, this is based on the fact that we have several departments waiting for other business for the day. Members, it is my plan to look at deferring the building permit report item C 2012 -63. I would also like to see if we can defer the resolution on the no parking module for Vidinha Stadium, Resolution No. 2012 -26. I would also like to defer Executive Session 532, that is requesting the release of a particular County opinion, and also on two (2) housing items to get them deferred until April 11, 2012 so that we do not have people here for a long period of time. This agenda item today has consumed a lot of the Council time. If that is acceptable, members, I would like to put the word out to those Department Heads that they do not need to wait into the night because we also have to take a dinner break by our contractual agreements at 6:30 p.m. Can I just have an indication that when we come up on those items you are okay with the deferrals. COUNCIL MEETING 106 MARCH 14, 2012 Thank you. Would you so notify the various County Agencies. To the Housing Department, a big mahalo for being here, you will re- appear in two (2) weeks, April 11, 2012. Thank you again. The meeting is called back to order, and I was, at my discretion as Chair, going to allow Kepa Kruse three (3) additional minutes to share some information with us, but no more than three (3) because I do not want to establish a precedent that we have to continually move forward. If you could re- introduce yourself, I would appreciate it and I will give you three (3) more minutes. There being no objections, the rules were suspended. KEPA KRUSE, KOLOA CAMP RESIDENT: Thank you Chair Furfaro. My name is Kepa Kruse. I will only take these three (3) minutes just to clarify questions that were raised that we did not have clear answers. Going back to previous concerns from Councilmembers Rapozo and Chang about commercial aspects of the camp lifestyle, let the record show that in 1891 the school building was built and its first use was commercial so that a school teacher could teach the Japanese tenants how to speak English to communicate in the sugar plantation fields. Let it also show that within the camp Sueoka Store was started by the Japanese plantation camp worker Mitsuyoshi Sueoka in 1913. That was for Japanese plantation workers who were coming home after their day's work to pick -up whatever items they needed from their store which is like a country store; they moved to their new location later. Other things that were mentioned, I spoke with Councilmember Nakamura about how many homes were unlivable. There is one (1) home that is unlivable as of right now, it is one hundred fifty (150) years old, being recognized as one (1) of the oldest homes in Koloa. That home is across the street from our house, it used to be owned and lived in by Qi Inouye who had lived there for seventy -two (72) years, she passed away there a few years ago at the age of ninety -three (93). Other things, the bypass was created in 1996, the zoning was done in 1969, and we had spoken about that. I am still not clear whether or not the parcel was entirely zoned urban at once or it was zoned ag. I do not know what happened when it was split, I would love to find that out and clarify that. Other things as far as the livability of these homes, like I said these homes are a hundred years old, yet in the last seventy (70) years they have been through three (3) hurricanes, seven (7) major floods, along with the development of the surrounding area, and it still remains. Regarding Peter Savio's written proposal to Grove Farm, a written proposal was submitted on January 27 to Grove Farm. They responded on February 10, but the details of what was said or what was perceived has not been revealed to any of the tenants living there. Lastly, the thirty (30) extra days which Grove Farm gave the tenants, I want to put on the record that the tenants very much appreciate Grove Farm being reasonable especially when Kaua`i was issued as a disaster zone from the weather from March 3 through the 1 1th. COUNCIL MEETING 107 MARCH 14, 2012 Those are the only things that I wish for my three (3) minutes. Thank you for letting me have the chance to clarify. Thank you. Chair Furfaro: meeting back to order. You are welcome. I will be calling our There being no objections, the meeting was called back to order, and proceeded as follows: Chair Furfaro: Members, when we took a break it was for the purpose to allow time for the potential introduction of amendments to the resolution. I believe earlier this morning we started with an approval of the amendment which it was seconded, so the nature of our business now will in fact be dealing with proposed amendments. Could I just get a little indication of how many members have amendments? We have two (2) sets of amendments. Mr. Bynum would you like to go first? Mr. Bynum: Sure. I think this is an important issue listening to all the testimony today. The amendments I have I think take out some of the objectionable language that might put us in a conflict but keeps the meat of the request. I have run it informally by the County Attorney who feels like it has moved out the objectionable things but still makes the statement that I think is consistent with the title. Chair Furfaro: You want to highlight them for us? Mr. Bynum: I do not know if the staff is passing this out. I can go down step -by -step. In the first paragraph I am removing the end of the sentence that says requiring tenants to evacuate the premises by March 8, 2012. In the second paragraph there is this one (1) word change where it says Koloa Early School a preschool which currently says would, I am substituting that with the word could, because I do not know if that is a fact and it is kind of stated as a fact but it is a concern. Then the fourth whereas, most of the tenants cannot afford such a price, and I am suggesting we remove. In the sixth whereas, starting with the word price through the word habitat, because... my rationale here is so it would read, whereas there appears to be many unresolved issues and uncertainties involved in the development of the camp site including but not limited to road access, traffic, flooding, septic systems, and impact on the surrounding community. Those are issues that the Council and the County is concerned with and it seemed appropriate. Some of the other ones that I am suggesting to remove like price, ownership, successed (sic) abilities, speculation, are issues that the County typically would not, there would not be nexus. I am removing the part about the Koloa Duck, and then in the final paragraph, the last part of be it resolved that the County hereby requests Grove Farm to find a way to include existing tenants in its plans to COUNCIL MEETING 108 MARCH 14, 2012 develop the camp, period, and removing the rest of that sentence. On the back page, be it further resolved that Grove Farm is hereby requested to withdraw their eviction notice in good faith to allow for a deliberate and thorough examination of alternatives. So we remove the word the and to Grove Farm's original plans. And the next three (3) further resolves are removed. And then the final further resolved the name Peter Savio is removed. So my view is this removes the parts that the County Attorney was talking about which kind of overstep our bounds but leaves the intent of the resolution intact. So that is my rationale for this and that is my stab at it. Chair Furfaro: Thank you Mr. Bynum. Councilmember Nakamura. Ms. Nakamura: Thank you Councilmember Bynum for attempting to address the concerns. You said on the second page, the second paragraph, but only that second paragraph is bracketed. Was your intent to have the second, third, and fourth, you said the second, third, and fourth. Mr. Bynum: I am sorry, I am looking for my notes so maybe I need to see the copy you are looking at. Ms. Nakamura: copy of his proposed amendment? staff. Mr. Bynum: Ms. Nakamura: Chair Furfaro: Can someone give Councilmember Bynum a I was reading from the mark -up I did give to That is not what it shows. You still have the floor. Ms. Nakamura: My question to Councilmember Bynum is was your intent to have the second, third, and fourth paragraph bracketed? Mr. Bynum: On the second page? Ms. Nakamura: Yes. Mr. Bynum: Yes. Ms. Nakamura: And so that would need to be changed in this amendment if that was your intent. COUNCIL MEETING 109 MARCH 14, 2012 Chair Furfaro: What we are reading from they are not bracketed. Ms. Nakamura: Yes. Thank you. Mr. Bynum: I do have really mixed feelings about one (1) of the changes I suggested and so I would really love input from members. It has to do with the final paragraph on page 1. What is bracketed is taking out such that all tenants be continued to live, to continuing tolive in the camp. I have mixed feelings about that removal because again this is a request and I know that that is the request of many. And so I would really prefer to leave that in and I wanted further clarification from the County Attorney about whether there was an objection to that portion. Chair Furfaro: So for the amendment you introduced to us, is it in or is it out? It is out here. Mr. Bynum: It is out here. Chair Furfaro: So is that what you want? Mr. Bynum: I have very mixed feelings about. Seeing how, I would really prefer to leave it in but I want to see if there is an objection in terms of...I thought that Ms. Clark's analysis was helpful for me to make these terms and I do not know if you addressed that particular one. Chair Furfaro: Mona, I will suspend the rules. I do not like to do this once we enter into deliberation, but please come up for the sake of Mr. Bynum's proposed question. There being no objections, the rules were suspended. Mr. Bynum: The question I think would be, would you have an objection to leaving "such that all tenants be able to continue living in the camp." Because it says request, I do not know if that oversteps the bounds. The last paragraph begins, the first be it resolved. Ms. Clark: I do not see a problem to leaving that language in. Mr. Bynum: Then I prefer to leave it in, seeing how those others are not bracketed, and it has to be reworked. In terms of my amendment, I prefer that those words stay in. COUNCIL MEETING 110 MARCH 14, 2012 Ms. Yukimura: Mr. Chair? Chair Furfaro: So let me get this clarified from Mr. Bynum first. Mona, thank you. The meeting was called back to order and proceeded as follows: Chair Furfaro: Mr. Bynum's introduction of this resolution on the first be it resolved on the bottom of page 1 such as all tenants will be able to continue living at the camp, he showed that is being removed and he is now indicating that he wants to leave that in. Mr. Bynum: Yes. Chair Furfaro: Did I get that correct. Mr. Bynum Yes sir. Chair Furfaro: Let the record reflect that change. Mr. Bynum And the other change, my intention was on the second page, all three (3) paragraphs 3, 4, and 5 come off here. Chair Furfaro: Members, do we understand? I am going to get to discussion. Do we understand where Mr. Bynum has changed his resolution? Now also let the record show on page 2 of this piece be it further resolved the second be it further resolved, the third be it further resolved, and the fourth be it resolved, those are all bracketed to come out. Mr. Bynum: Correct. Chair Furfaro: Is that correct? Mr. Bynum Correct. Chair Furfaro: Okay very good. With that being said, is everybody fine with what Mr. Bynum is suggesting this amendment to reflect? On that note I will go to Vice Chair Yukimura and then Mr. Rapozo. Ms. Yukimura: I just want to be clear, I thought that in paragraph 4 on page 2 you just wanted to remove the name Peter Savio. COUNCIL MEETING 111 MARCH 14, 2012 Mr. Bynum: That would be on the final paragraph where it says copies of this resolution, because that would make it consistent with removing this paragraph. Ms. Yukimura: Okay. Mr. Bynum: This is one (1) that I thought the County Attorney said hey when you mention a specific developer you are getting into... Chair Furfaro: Before you go any further let us get this clarified for all the members. So the fourth paragraph I had just read back to you, the be it further resolved where it references Mr. Savio, you have indicated that that entire paragraph come out in your amendment. Mr. Bynum: Yes sir. Chair Furfaro: That is correct? Mr. Bynum: Yes. Chair Furfaro: So that answers Vice Chair Yukimura's question. Ms. Yukimura: I have one (1) more question. Chair Furfaro: You have another question you can direct it at Mr. Bynum. Ms. Yukimura: And you are also proposing to remove paragraph 5? Mr. Bynum: No. Ms. Yukimura: So it is just 2, 3, and 4 that you are proposing to remove? Mr. Bynum: Yes. Ms. Yukimura: Okay. Mr. Bynum: And that one (1) name. Ms. Yukimura: Right. So is it out procedure that we are going to have this re- written because I have a suggestion, Chair. COUNCIL MEETING 112 MARCH 14, 2012 Chair Furfaro: I am going to make a statement here, we will not act on a pencil scribed piece. Ms. Yukimura: Good. Alright. Chair Furfaro: The pieces that Mr. Bynum has changed since he introduced it, even if we have to take a recess we will go back to our staff to correct appropriately. But let us get to all of those changes before we send our staff out to make changes. Mr. Bynum: Thank you for your patience, Chair, I think they have been clear now. Chair Furfaro: You have the floor, Mr. Rapozo. Mr. Rapozo: Mr. Chair, I have a resolution, I mean an amendment as well, and I am not sure where the votes will fall. But if Mr. Bynum is going to take a, our amendments are very close to each other as I can see. Rather than take another recess I would ask that I be able to circulate my amendment, have the discussion, and if we can live with the amendment then we can live with the amendment, if not then we can take a recess. Or the staff, while we are addressing my amendment, they can be working on Mr. Bynum's amendment. Chair Furfaro: So I am going to ask the staff to be working on Mr. Bynum's corrected version and then I will give Mr. Rapozo the floor. Ms. Yukimura: Could I make another suggestion as terms of procedure. Chair Furfaro: Let me recognize you first and let us be very clear, and then I will let Mr. Rapozo have the floor, that is future tense, and that is the intent. Mr. Rapozo: May I? Chair Furfaro: You have the floor. Mr. Rapozo: I will move to amend Resolution No. 2012 -29 as circulated. Ms. Yukimura: We cannot have two (2) motions to amend. Chair Furfaro: Would you let me run the meeting? COUNCIL MEETING 113 MARCH 14, 2012 Ms. Yukimura: Point of order. Chair Furfaro: Point of order. Would you let me run the meeting? If somebody is going to say to him we are going to wait until Mr. Bynum's piece is corrected before I am going to allow him to introduce anything, then let that come from the Chair. Ms. Yukimura: Okay. Chair Furfaro: Okay? That is only fair and reasonable and I am a pretty reasonable guy. Ms. Yukimura: You are. Chair Furfaro: Okay. Mr. Rapozo: I will make a point of clarification because a point was made, Mr. Bynum's amendment was never moved onto the floor. Yes, I pay attention. Chair Furfaro: I try to as well, thank you. So we do in fact, it would probably be best suited if the corrections are made in Mr. Bynum's resolution then it is acted upon on the floor. And so I am back to my original statement, we are going to take a few minutes for a recess to get his piece corrected. We are not going to introduce something. Mr. Rapozo: We already have a motion and a second. Chair Furfaro: That is true. So if you would be willing, Mr. Rapozo, I would like to get his version complete, so I am asking leading from the Chair that your motion and second be removed. Mr. Rapozo: I will honor the request of the Chair and I will withdraw my motion. Mr. Chang: I believe I seconded; I withdraw my second. Chair Furfaro: Thank you very much. On that note, we are going to get a correct version of Mr. Bynum's piece. But before I recess, I will recognize the Vice Chair. You folks keep me really busy. Ms. Yukimura: We are really glad we have you as Chair, Chair. What I am going to suggest is something that may want to hold up the staff COUNCIL MEETING 114 MARCH 14, 2012 work on Mr. Bynum's amendment because this is what I want to suggest. I do not care if it is Mr. Rapozo's amendment or Mr. Bynum's amendment, I would like to suggest that we go in seriatim and have a discussion, because there might be more changes that come up that appear to be like a consensus. Then we would be clearer to know what kind of amendment to draft or we would get closer as we discuss each one (1) of them. And so I think it might be valuable to take one (1) of the . amendments, and like I say, it does not matter because as Councilmember Rapozo has said they are both similar, and go over each one (1) at least in terms of some discussion, some organized discussion. You know the first paragraph that is being amended, the second, and discuss it, and then maybe do some writing. Chair Furfaro: I do understand what you are saying but I want every member, before we go in seriatim reviews, I want to make sure that every member has Mr. Bynum's intent sitting in front of them. That is what I want to do. I understand your concern and we will approach them in order but I want to make sure everyone has a clean copy so there is no continued confusion of well I meant that to not be bracketed and take that out and just a word. Let us get it in front of us. So if the audience can be patient with us as we work through this, we will allow some time to correct Mr. Bynum's amendment. This is not a formal recess, this is just a break, you can take us off tv. Vice Chair Yukimura. Ms. Yukimura: In the interest of time do we want to do some of our business? Chair Furfaro: I have just announced a few pieces that I want to make sure we communicated the right information about certain deferrals to other Department Heads. I would like to go and do that while we are on the break. Ms. Yukimura: Okay. Chair Furfaro: Okay. We are in recess. There being no objections, the meeting was recessed at 5:49 p.m. The meeting reconvened at 6:07 p.m., and proceeded as follows: Chair Furfaro: We are back in session. As the Chairman I have in the past year and two (2) months made some standard changes and I would like to request and so note that going forward as we work on Floor Amendments, I would appreciate not only the bracketing but the highlights. If we can do so I would appreciate it, it obviously helps us sixty -three (63) year old guys get through the process. So I want to thank the staff for going back and color coding Mr. Bynum's COUNCIL MEETING 115 MARCH 14, 2012 amendments. Now on that note, Mr. Bynum, we actually have this introduced on the floor with a second. Mr. Bynum moved to amend Resolution No. 2012 -29 as circulated, seconded by Ms. Nakamura. (See Floor Amendment attached hereto.) Chair Furfaro: Okay it has been moved to amend as circulated with a second from Councilmember Nakamura. We are planning to go through this again individually and I would like Mr. Bynum to take us through that while I call for the vote. We are in the voting mode, we are not in the discussion mode so members please note that. Mr. Bynum you have the floor, you can take us through the first highlights. Mr. Bynum: Each step? Chair Furfaro: Each step. Excuse me and be ready to record the votes on each piece. Mr. Bynum: In the first paragraph, this amendment removes the words requiring the tenants to evacuate their premises by March 8, 2012. Chair Furfaro: Thank you. Members all those in favor... Ms. Yukimura: Mr. Chair? Chair Furfaro: Yes? Ms. Yukimura: Just as a matter of procedure can we just open it up for discussion. I do not have any discussion on this particular one (1). So if Councilmember Bynum goes to whatever amendment in seriatim, then if we can have some discussion, if there is none, then vote? Chair Furfaro: I believe we are calling for the vote and I do have a problem with that. You can .voice your commentary each way you vote at that point. So if you are a aye and you want to voice why, or if you are nay and you want to voice why, I will allow the individual members, but to enter into a discussion we are in decision making process right now. So is there anyone that would like to say or quote anything about the way their vote goes on the first you have that privilege. So all those in favor of this first one (1) signify by saying aye. Is there any nays? None. Next, Mr. Bynum. COUNCIL MEETING 116 MARCH 14, 2012 The motion to amend the first paragraph was then put, and unanimously carried. Mr. Bynum: In the next paragraph there is one (1) word change from would to could. Chair Furfaro: If you want to voice a comment during your vote, please do it or raise your hand. All those in favor indicate by saying aye. Next one (1), Mr. Bynum. The motion to amend the word "would" to "could" was then put, and unanimously carried. Mr. Bynum: In the fourth whereas it is eliminated. Chair Furfaro: All those in favor say aye. Ms. Yukimura: Mr. Chair? Chair Furfaro: Okay. Ms. Yukimura: I feel like we should keep it in because it is the truth. Chair Furfaro: Okay thank you. There is a comment on that. All those in favor of voting for this one (1) indicate by saying aye. Any nays? Ms. Yukimura: No. The motion to delete the fourth whereas paragraph in its entirety was then put, and carried by a vote of 6:1 (Ms. Yukimura voting no.) Chair Furfaro: One (1) no. Thank you. Mr. Bynum next one Mr. Bynum: The sixth whereas, the words price, ownership, susceptibility to future speculation, historical and cultural preservation opportunities, endangered species habitat is removed. Chair Furfaro: This is a request to vote on the sixth change. Ms. Yukimura: Mr. Chair? Chair Furfaro: You have the floor. COUNCIL MEETING 117 MARCH 14, 2012 Ms. Yukimura: I am going to vote aye, but I want to say that I really think there are unresolved issues as to price, and I think we have to be concerned about future speculation, which is why I have been talking whenever we talk about affordable housing, I have been talking about perpetual affordability in a place like Koloa. Unless you address that, the property is only affordable for the first sale. Chair Furfaro: So noted. All those in favor indicate by saying aye. Next item Mr. Bynum. The motion to amend the sixth whereas paragraph was then put, and unanimously carried. Mr. Bynum: Then the next whereas regarding the Hawaiian duck is removed. Chair Furfaro: All those in favor indicate by saying aye. Thank you. Mr. Bynum. The motion to delete the seventh whereas paragraph in its entirety was then put, and unanimously carried. Mr. Bynum. On the back page the first be it further resolved is amended to remove the words the and to Grove Farm's original plan. So it ends up just saying to allow for a deliberate and thorough examination of alternatives. Chair Furfaro: All those in favor...yes? Mr. Rapozo: I am not going to be supporting that. I know you said you can say it at the time of the vote, but I would ask your indulgence. I believe that that paragraph is, after reading the LURF's testimony and the case in O`ahu, I think, in my opinion, crosses that line. I think when we are, although it is only a request, that is what happened on O`ahu in Manoa, it was only a request. The ramifications were quite expensive, so I will not be supporting that, and in my amendment would have removed that entire paragraph. I would ask for others to really consider removing that entire paragraph. Thank you. Chair Furfaro: So noted. Mr. Bynum. Mr. Bynum: I am going to support this as it is because to remove this paragraph, this is the title of this and it is a request so... COUNCIL MEETING 118 MARCH 14, 2012 Chair Furfaro: Thank you. I understand your concern, but after consultation with the County Attorney sharing with us and because the word is request, I will be supporting it. May I ask all those in favor of this amendment signify by saying aye. Any nays? Mr. Rapozo: No. Chair Furfaro: One (1) nay. Thank you. Mr. Bynum. The motion to amend the eleventh paragraph was then put, and carried by a vote of 6:1. (Mr. Rapozo voting no.) Mr. Bynum: You want to do these each? Yes. Chair Furfaro: Yes. Mr. Bynum: So the next paragraph, be it further resolved that the Council requests Mayor, that one (1) is to be removed. Chair Furfaro: That whole paragraph? Mr. Bynum: That whole paragraph. Chair Furfaro: Vice Chair Yukimura. Ms. Yukimura: I am going to be voting no, because I think it is quite appropriate for the Council to request the Administration to work with Grove Farm. Again, it is not tying them to anything but it is all part of the effort. What I am hoping is that we would all together be in the same canoe and in the same direction working toward a win -win solution and the Administration should be part of it and so should the tenants and Grove Farm and everyone; and again, so this is just a request. Chair Furfaro: I am going to ask for a vote. Mr. Bynum did you want to speak again? Mr. Bynum: I did not feel strongly that this needed to be removed so if there was a sense that it could stay I would be okay with that. Chair Furfaro: Okay, let your vote reflect that, it is your amendment. All those in favor indicate by saying aye. Mr. Bynum I will now call for those that are nay for the removal of that item. All those in favor of leaving the item in there signify by saying aye. COUNCIL MEETING 119 MARCH 14, 2012 Ms. Yukimura: Leaving the item in? Chair Furfaro: Yes leaving it in. All those in favor in leaving this first paragraph in signify by saying aye. Is there any nays. Okay Mr. Bynum it stays. The motion to delete the twelfth paragraph in its entirety was then put, and failed by a vote of 0:7. Mr. Bynum: The next paragraph regarding the Planning Department would be removed. Chair Furfaro: All those in favor of the summary that was just given to us regarding the Planning Director's CZO issue please signify by saying aye. Mr. Bynum next one (1). The motion to delete the thirteenth paragraph in its entirety was then put, and unanimously carried. Mr. Bynum: And then the next paragraph regarding a specific developer would be removed. Chair Furfaro: All those in favor... Ms. Yukimura: May I say something? Chair Furfaro: Go ahead. Ms. Yukimura: I actually am in favor of removing Peter Savio's name, but I think that working with knowledgeable affordable housing developers is important. So I would like to, and I guess I would have to propose another amendment, but to provide appropriate assistance to any knowledgeable, affordable housing developer. I just want to say that Kaua`i Housing Development Corporation has been mentioned. Peter Savio was on the first board of the Kaua`i Housing Development Corporation because of his reputation for being very creative and very committed to making housing available to local people. I think if we are looking for solutions, we need to call upon people like developers like that because affordable housing is not like for profit housing, it is a lot more difficult and you just need people who are experienced and who know the different angles to it. So I guess I will be voting no, but not with the idea of not removing Peter Savio's name, I am okay with that, just with the concept of what I am in favor of is the concept of drawing upon knowledgeable and affordable housing developers. COUNCIL MEETING 120 MARCH 14, 2012 Chair Furfaro: Okay. Members I am calling for the fourth paragraph on the second page which is indicated to be removed. All of those in favor signify by saying aye. Any nays? Ms. Yukimura: Mr. Kuali'i: No. No. Chair Furfaro: Two (2) nos, please so note and record as such. Mr. Bynum. The motion to delete the fourteenth paragraph in its entirety was then put, and carried by a vote of 5:2. (Mr. Kuali`i and Ms. Yukimura voting no.) Mr. Bynum: And the last change would be in the final paragraph removing the name Peter Savio. Chair Furfaro: Okay. Is there anyone wanting to say anything before I call for the vote on this item? If not all those in favor of removing Peter Savio in the resolution as named in the last paragraph signify by saying aye. Any nays? None. Now we have an opportunity to entertain additional amendments. Is there any new amendments? If not I am going to go to the main motion as amended. We are now at the main motion as amended and if there is any further discussion before I call a roll call vote? Vice Chair Yukimura. Ms. Yukimura: Yes. Mr. Chair, I just want to thank everyone for this very long drawn out process but something that has been about an issue that is very important to not only the tenants, not only to Grove Farm, but to our community. I want to reiterate again that this is just a request and it is non - binding, but it is the policy body of the Council asking the parties to look really hard at the possibility of finding a solution that can serve the needs of all stakeholders here, and it is based on the faith in the power of co- creation, good intention, and goodwill, and caring for everyone. If we go through this process and find that a win -win is not possible, at least it will be not for a lack of trying, and if we can find a win -win then thank God that we tried. So that is the intention and I hope that we can perhaps create something that will be a source of pride to Kaua`i. Chair Furfaro: Thank you. Mr. Kuali`i, I will give you the floor second since you were the co- introducer. Mr. Kuali`i: Thank you Mr. Chair. I too want to thank everyone for the time and effort put in this resolution today and leading up to today. COUNCIL MEETING 121 MARCH 14, 2012 Mr. Chair I want to thank you especially for recognizing the importance of putting it on the agenda to begin with to give the community a chance to come to us and not only talk to us, but to talk to the rest of Kaua`i as well. I was very moved by a lot of the testimony and happy to do what we can to help in any little way we can. Thank you Mr. Chair. Chair Furfaro: As they have pointed out I have always to be politically correct in the documents we serve. There is a pair of brackets we have to fix so we will continue to take some discussion, but I will not vote until we have the document fixed. Is there any further discussion before I speak? Mr. Rapozo. Mr. Rapozo: Thank you Mr. Chair. Thank you everybody for coming out. This was a real tough resolution, we spent a lot of time on it. As Councilmembers, I think I have referenced this several times throughout the day, we have to balance what is emotional, what we each have passions for, and what we want to do, what we are legally obligated to do, and yet what parameters we must stay in when we do things. This resolution from the beginning troubled me quite a bit because I believe that the Council has certain obligations to the people, and doing the research on other cases, I am quite troubled that in fact this resolution would have made it to the Council floor and put us in a position where we could actually bring more exposure and liability to the County. The discussion was lively and I have got to tell you that it is quite emotional, the empathy and the feelings for the tenants, could things have been done better? Definitely, I think. Does the Council have the duty to intervene in these types of deals? I do not know if we have that and part of my job is to protect the taxpayers from liability, protect the taxpayers on the entire island from potential exposure. It is a tough call when you are dealing with an emotional issue like this because there are things that I want to do, there is a lot of things God, I mean God only knows what I would like to say, but I cannot say what I would want to say because again limited by the confines of what I believe is our duties and responsibilities as Councilmembers. The original resolution, like I said this morning I would not have supported as it was written. The one (1) issue I did not support I think the request for Grove Farm to withdraw their eviction notices I think I am very very concerned about that and I understand that the attorney has advised us that it is okay; I am seriously concerned about that specific item. All of the rest I think I can live with because I do not think there is an issue of what everyone on this island wants to see happen in Koloa. They want fair and equitable treatment, they want the tenants to be respected, and they want the tenants to be treated fairly. Likewise, we as Councilmembers also represent people in business, we have that obligation as well. We are not just limited to represent the first person that runs up to us and says hey we need help. We are not obligated to count the testimonies that are for this resolution and against it, and then whoever gets the most we vote that way; that is not our job. Our job is to take a look at it from the high view, look down and say hey what is in the best interest of the people of Kaua`i. One (1) could argue that Grove Farm is a special interest, Mel COUNCIL MEETING 122 MARCH 14, 2012 you sold out to Grove Farm, whatever. One (1) would argue hey the Koloa Camp is a special interest you guys are catering to Koloa Camp, this resolution is written slanted for Koloa Camp. Is that our job as legislators? No, it is not. I think the revisions, the amendments have brought some balance, I really believe that. I think that the Administration, I think Grove Farm, I think everyone at the table got the message loud and clear, we want you guys to resolve this issue and try for a win -win. I think that is all I have to say, Mr. Furfaro. I appreciate again everybody coming to testify and all of the people that did not show up but took the time to send emails or make phone calls because we did get probably a couple hundred at least over the last couple of weeks. Thank you. Chair Furfaro: Mr. Bynum. Mr. Bynum I appreciate the process that happened here today, and I never know what I am going to say when I do these final things but I know what is in my heart is that this is a tough job being on a Council. I kind of long for the days when I was on that side because there you can just say hey this is the way it should be. But we all took an oath here to follow the law, the Constitution of the United States, and it is a national discussion about to what level do communities have a right to control their destiny through zoning, and planning, and land use rules, with one (1) side saying if it is my land I can do whatever I want, and the other side saying no if it is residential you cannot put a pig farm next to my house; and it is a national debate that is ongoing. That is why we have County Attorneys to help us sort through all of that to the best of their ability, and so finding that balance is really important. Grove Farm is an extremely important landowner on Kaua`i, the entire future of this island in some ways is in their hands. They own all the land that way in Lihu`e, and then when Mr. Case acquired it, he bought the AMFAC land that way; so forty thousand (40,000) acres right in the heart of our island and we want all of our businesses to be successful. But yet it is our job to make sure that we find that balance and hold them accountable because there are capitalists, there are entrepreneurs, they are supposed to get a return on investment, and we want them to get that return on investment. Grove Farm does have a long history of doing really positive things for the community. Now some of you are going to say yes, but that was under previous ownership, and I agree with that. And so I do not think Grove Farm can continue to talk about the (inaudible: largest) of the past, it is like what are we going to do going forward? But having said that, I know that Grove Farm is the company that can develop workforce kind of housing that we desperately need, especially in Lihu`e where the jobs are. And so we want them to be successful but we also want to represent the values and views of our community to the best of our ability and seek that balance. I think this Council did that today, I am proud of us collectively. I know I made some compromises, there is some language in here I would have liked to leave in but I took out because I wanted us to pass this resolution tonight. There is some other language I know some members would have liked to introduce that they chose not COUNCIL MEETING 123 MARCH 14, 2012 to, I assume for the same reasons. And so thank you, Mr. Chair, for your leadership today and I think this is a good resolution. Now I want to say the negative thing. The key question I asked today was did Grove Farm reach out to the tenants before they got the letter in the mail; I do not think they did. I believe they have been scrambling in good faith to some level trying to work out the fire storm that got created by this because it is serious and it has implications for the future of the island. This is not the only plantation camp where people are still living in old homes at low rates and this has to strike fear in those people because that was the other thing that happened was fear was afraid. Nothing is more personal to us than our home and our family, and so when those things get threatened it is scary. But I saw a lot of calm reasonable people here today, I see a calm reasonable response from Grove Farm to the best of their ability. But the folks that come up here they got bosses too right? They have to represent the interest of their bosses right? And so I think this is a good outcome. Thanks for letting me ramble a little bit. Chair Furfaro: Mr. Chang. Mr. Chang: Yes thank you. I want to thank the audience, the viewing audience, and the fellow Councilmembers for putting together what I believe is a workable resolution. There were a lot of signatures to support Koloa Camp and I appreciate that and I think a lot of people need to realize not a lot of people look at the resolution and they understand the plight but they do not understand what the whole wording of the resolution would be. I just wanted to, this morning I called my mom up who in three (3) weeks will be eighty -five (85), she is the eldest of the matriarch of the Chinen family, immigrants that came from Okinawa. We talked about Ms. Fernandez, the oldest being eighty -two (82) and soon to be eighty -three (83) I guess, and I remember seeing Councilmember Yukimura tear up because we are all thinking about our parents. My mom had six (6) brothers and she was one (1) of two (2) sisters, two (2) daughters, my dad was one (1) of ten (10) — six (6) brothers, four (4) sisters. So we all know what the plantation camp is all about. I had a pleasant conversation with Doreen Jacintho because I used to take her late father Louie home because he would like to sing a lot but did not have transportation from Kukui Grove or Po`ipu beach, and I kidded with somebody this morning on a personal note, the Wala'au theme song was written, recorded, and sang in the Koloa Camp home of then Alberta Genovio with aunty Kalikokauahikealoha; so I am familiar with that area because of my hanabata days and my roots. When the plight of Puamo`o Camp was going on, I actually video talked to some of my classmates and the people, so I understand that. From Puamo`o if you are familiar with the outskirts of Wahiawa, I would go through the Schofield Barracks side, and I actually stopped in Kunia Camp; now that was DelMonte and I was there for the last planting of the pineapple. I wanted to do a story of that closure, and one (1) month later without any announcement, DelMonte COUNCIL MEETING 124 MARCH 14, 2012 pulled out. So I understand what the roots and what the history is all about. I do want to say something that I said a little earlier, also in fairness to those that did not show up, there a lot of people on this whole island that are looking for affordable single housing homes. So I am just hoping that obviously there can be a situation that will be helpful for this historic community and yet also keep it in mind that there are those that are out there that want to live on Kauai, want to return to Kauai and live in good, quality, affordable homes which I think is the goal for Grove Farm. So I just want to thank everybody for their testimonies and again thanking our fellow Councilmembers because this is something that weighed heavily on all of us and gave us a chance to reflect on our roots. Thank you very much. Chair Furfaro: Anyone else wishes to speak before I speak and call for the vote? If not I would like to say really through back and forth communications today, we have an amended resolution. It is something for many of us here growing up in the islands, I grew up on the Waianae coast, first sugar plantation to close. I remember star hooking tilapia in Kaupuni Stream, I remember running through the Old Mill Street and taking some Portuguese bread from the different ovens, obviously I would get into trouble for that, and the smell of the furos lighting up at five o'clock in the camp; those are really reminiscent parts of growing up in Hawaii. I lived in Kilauea in my uncle's home who was one (1) of the supervisors there two (2) years before Kilauea Sugar closed, my wife's grandfather Mr. Ito was the head carpenter for Kilauea Sugar. That is a wonderful time in the history of Hawaii and living it was a great opportunity. But we do need to look forward in providing work opportunities, housing opportunities, and I have to tell you, I believe Grove Farm has done a number of wonderful things, reaching out to our community, and I thank them and David for being here today to actually listen to the concerns. That is the most important piece to me about living aloha in our community, we can agree to disagree and walk away at the end of it feeling that we got an opportunity to speak our piece. That is one (1) of the reasons I was willing to put this on the agenda today and I want to remind us all this is a resolution that is non - binding. I also want to thank the County Attorney's Office and Mona, thank you very much for some of your explanations today. On that note, I shall call for the vote and I would call for the vote by roll call on the amended resolution. The motion for adoption of Resolution No. 2012 -29, as amended herein, was then put, and carried by the following vote: FOR ADOPTION: Bynum, Chang, Kualii, Nakamura, Rapozo, Yukimura, Furfaro AGAINST ADOPTION: Yukimura EXCUSED & NOT VOTING: TOTAL — 7, TOTAL — 0, TOTAL — 0. COUNCIL MEETING 125 MARCH 14, 2012 Chair Furfaro: We are going to break for dinner by rules and then we will back here on or about 7:35 p.m. for the rest of the business on the Council. There being no objections, the meeting recessed at 6:38 p.m. The meeting reconvened at 7:42 p.m., and proceeded as follows: Chair Furfaro: We are back in session after our dinner break, I am going to ask the Clerk's Office if you could please read from Communication 2012 -63. C 2012 -63 Communication (02/16/2012) from Councilmember Rapozo, requesting the Administration's presence to provide the Council with: •An annual (2011 calendar year) synopsis of construction activity in the County of Kaua`i as reflected in the building permit information that is normally provided to the Council on a monthly basis. • A projection of construction activity in the County of Kaua`i for the 2012 calendar year. Chair Furfaro: Thank you. I would like to say this is two (2) issues here: 1) regarding the building permit, I have a note here that called in to our staff from Public Works that IT is having a difficult time producing the contractor's forecast and so they are asking for a deferral request for two (2) weeks. As I earlier said I indicated we would like to have that item deferred, and I appreciate Mr. Rapozo putting this on the agenda for deferral. But before we get that, Scott could you put this item back on the screen here because there is another part to this forecasted building permit that when I actually introduced the format that we are using, it was for the purpose also to help us actually forecast growth in taxes; that was the main purpose that it was used. So for the first eight (8) months I actually shared with them, so the idea is that you trace the values of the permit, you apply the building portion that gets exposed, and from that at the determined rate of $4.52 you can see the value of the permit contributing to the growth in revenue. And so through the period of June of that year I did the tracing myself, so for six (6) months we had a growth of $489,000.00 in new revenues based on the way we laid out the building permit schedule. So it had two (2) features to it and at this point I just showed them several months how they could use it for forecasting, but to this point I do not think they use it for that; so it had two (2) particular pieces. I know Mr. Rapozo's question is using those reports for other purposes as well as it relates to economic benefits and so forth. Mr. Rapozo. Mr. Rapozo: Thank you Mr. Chair. Actually, I think you remember because I think you were the Councilmember that requested, and it has got to be back ten (10) or eight (8) years ago, as those reports would come to this COUNCIL MEETING 126 MARCH 14, 2012 Council they served no purpose at all. I can remember the discussion and I believe you were the Finance Chair that this is such valuable information to forecast revenue because permits have value. We are entering the budget cycle; in fact I believe it is tomorrow we get the Mayor's Budget. Part of the reason for my request was really to get what you have put up on the screen and I appreciate that. I am not sure what IT is struggling with, I can only imagine that they are trying to oversimplify something. We get the monthly reports, you get the quarterly reports, I was just asking for something similar to this as we move into the budget cycle at least this Council will have an idea what is forecasted, granted that may not be accurate, but we will have an idea based on the number of permits being issued what we can anticipate as revenues from these projects. So I definitely will support the deferral, but if IT cannot get it together, I would hope that Public Works or Buildings can come up with something like this and give us an overview of the year in review. Like I said we are right into the budget cycle now, so the sooner the better, but thank you very much, that actually helps quite a bit. Chair Furfaro: I do have a folder prepared that has the last two (2) years of the tracking of building permits that I can give that to you and therefore you can get, if a building cycle is eighteen (18) months, you should be able to forecast this kind of impact next year for those values coming full circle. Mr. Bynum you have the floor. Mr. Bynum: Just a related comment and I think this would be great for us to be able to do this kind of forecasting but it probably means Public Works working with Finance to develop that. But this is similar to what, a number of us attended a smart growth conference again this year that communities all over the Country do public - private partnership, big projects like downtown redevelopment and they can look at that project and predict the tax revenue going forward and use a mechanism called tax incremental financing to put the infrastructure at the front end by predicting the property tax revenues which will be the debt service for that large infrastructure improvement. It is a way to take a vision you have for a downtown and do it not incrementally in pieces but kind of go big and use these creative finances. You need to be able to predict the revenue in order to use that kind of thing. So it does have many good uses. Thank you Chair. Chair Furfaro: So Scott on this particular matter I am going to be asking for a deferral but if we can give this template to Mr. Rapozo and then I will give to Mr. Bynum the last two (2) years in file, so you can take that from there. I am looking for a deferral on this item. Mr. Chang moved to defer C 2012 -63, seconded by Mr. Kuali`i, and unanimously carried. COUNCIL MEETING 127 MARCH 14, 2012 Chair Furfaro: For the Clerk's Office could you take us to the next item. CLAIM: C 2012 -80 Communication (03/01/2012) from the County Clerk, transmitting a claim filed against the County of Kaua`i by Reid Judson, for damage . to his vehicle, pursuant to Section 23.06 Charter of the County of Kaua`i: Mr. Kuali`i moved to refer C 2012 -80 to the County Attorney's Office for disposition and /or report back to the Council, seconded by Mr. Chang, and unanimously carried. COMMITTEE REPORT: A report (No. CR - FPP 2012 - 01) submitted by the Finance /Parks & Recreation /Public Works Programs Committee, recommending that the following be received for the record: • "FPP 2011 -01 Communication (04/20/2011) from FPP Chair Bynum, requesting Committee agenda time to discuss the County's financial condition as it relates to the Comprehensive Annual Financial Report (CAFR)," Mr. Kuali`i moved for approval of the report, seconded by Mr. Chang, and unanimously carried. A report (No. CR -PL 2012 -01) submitted by the Planning Committee, recommending that the following be approved as amended: "Bill No. 2424 - A BILL FOR AN ORDINANCE TO ALLOW SOLAR ENERGY FACILITIES IN THE AGRICULTURE DISTRICT," Mr. Rapozo moved for approval of the report, seconded by Mr. Kuali`i. (See later for Bill No. 2424, Draft 1.) There being no objections, the rules were suspended. RAYMOND HO, RESIDENT: I am somewhat concerned about the dropping of the Class B rated lands from the purpose of this bill. As I see it, the development of solar - voltaic (sic) systems pretty much follows the same criteria as agricultural products. The better the land, the cheaper it is to put it in place, as you could put it in place for less, you lower the cost and ultimately the beneficiaries is the whole island of Kaua`i. There are limited areas on the island where solar farms work the best. You can go to north of Kapa'a versus the west side, you are looking at about a twenty -five percent (25 %) factor of intensity of light and of sun. That being the case, I realize that it does not eliminate the Class B lands but it lengthens the process of permitting. Right now is a prime time for development of solar systems and there is a lot of interest of developing it here in Hawai`i, especially on Kauai because we are the highest rate payers; so financially it makes a lot of sense. The motivation is great for us and there is a lot of outside interest to finance and fund because the financial package or the financial lack of a better word or description COUNCIL MEETING 128 MARCH 14, 2012 but the numbers work. I can see on some projects that I am working on you are looking at maybe about $0.04 per kilowatt hour difference. Now that sounds little but that is millions of dollars and the ultimate charge is to the consumer. Right now KIUC is paying $0.20 per kilowatt hour, but the cost of the products have gone down and it is becoming more and more competitive and the opportunities is now. We realize that the Federal tax credit program expired last December but there are still funds, they call them safe harbor funds. I worked with one (1) client, they have up to $300 million in safe harbor panels, but there is a deadline on it that they have to expend it and if they cannot do it within a reasonable amount of time they will go somewhere else and invest their money. Mr. Topenio: Three (3) minutes Mr. Chair. Mr. Ho: I would like to urge a reconsideration to re- instate the B Classifications. Some of the other issues for consideration is that the (inaudible) limitation, the ten percent (10 %) limitation, let us say a person has a fifty (50) acre parcel, you are limited to five (5) acres then you can basically do a one megawatt (1 MW) farm. But the one megawatt (1 MW) farm is going to require an interconnection which what we see is a substation, and that substation is going to cost $1 million regardless whether it is five megawatts (5 MW) or one megawatt (1 MW). So you want to be able to spread the cost as much as possible to drive the cost down, so that is another concern with the percentage limitation. I think KIUC has given their testimony, I was not here when they did it this morning, but just as a member of the community I would just like to see or be able to... and the competition is good, there is plenty of proposals out there wanting to come in, that are coming in. KIUC has opened up an RFO, this is the first time I have heard that acronym RFO. I think it is request for opportunity, usually it is RFP. But there is a lot of interest and I hope we can take advantage of it for the least amount of money for the greatest benefit of all of us. Another concern I think people raise up, are you going to take land out of agriculture? Well to me the paradigm shift is harvesting solar energy as an agriculture product, I mean basically every crop you grow is for energy. There is food consumption, or burning, and that is the least efficient. I guess I will drop it there, I will stop. Chair Furfaro: I appreciate your testimony. I also thank you for realizing that by this change on Class B lands we are not saying that it could not be permitted, it is just saying that we need a application for use in front of the Planning Department. Now, let me give you a couple of other things that seem to be crossing a nexus unknown yet but we know it is going to cross. The testimony we heard today this morning from KIUC was the third different number we heard that says how much solar power will you really buy. Today was the third time they gave us a different number and never in writing. On the other side we have over the last two and one -half years a study funded by the County that we are farther ahead than any other County on what are we going to do for important ag lands, what are we going to earmark and what kind of credits will people get for committing prime ag land to an agricultural plan? That study is supposed to be completed in November for the Council. So we have these two (2) pieces covering across of which we are absolutely uncertain what KIUC's position is. One (1) number was as low as fifteen percent (15 %) of the seventy -eight megawatts (78 MW), next time we got a number that was forty percent (40 %), today we got a number of fifty percent (50 %) but only used in the day time. It is kind of like trying to dig out good information so we can make the appropriate decisions, especially as it comes to the important ag lands which was mandated to us by the State. So we have a lot of moving parts. COUNCIL MEETING 129 MARCH 14, 2012 Mr. Ho: At the fifty percent (50 %), let us say at the fifty percent (50 %) you realize not all of it is going to be solar, it is going to be other hydro... Chair Furfaro: Mr. Ho: Chair Furfaro: daytime. Mr. Ho: Okay. At that scenario up to now it has taken five (5) acres to produce one megawatt (1 MW), so you are looking at a total of no more than two hundred -fifty (250) acres that is being considered to take out of agricultural use. Chair Furfaro: And even the number, one megawatt (1 MW) for five (5) acres, changed today because it was one for four. Mr. Ho: Right. I was going to say you go to the west side and it is one for four. Chair Furfaro: Yes. Mr. Ho: And then down the road it is going to be even less because efficiency will increase. Chair Furfaro: Mr. Ho: Chair Furfaro: Mr. Ho: That is not what he said to me. He said fifty percent (50 %) solar? He said fifty percent (50 %) solar in the Absolutely. And the panel costs have dropped. Have dropped again. Yes. Chair Furfaro: So we have all these variables that we are asking our cooperative of which the County of Kaua`i is a huge member of this co -op to give us some reasonably good information so we can incorporate it into our strategic thinking, and right now we are saying with the State pieces just exempt A and the bill only exempts A lands.We would like to have a better understanding of what these potentials are before we just flat out permit B. That is all we are asking for right now and KIUC got the message from me today. I am not someone who likes to see a number that changes every month. I think it is just a good business practice especially since we are mandated something on important ag lands from the State. Mr. Ho: I still take my position. Chair Furfaro: Understood. I just wanted to explain mine. Mr. Rapozo. Mr. Rapozo: Thank you. Thank you for being here and waiting through that entertaining session all afternoon. It sounds like you have a pretty good handle on this industry, the solar industry. You mentioned a window of opportunity, how much window of opportunity do we have? COUNCIL MEETING 130 MARCH 14, 2012 Mr. Ho: I am speaking to the Federal tax credit which expired in December. Mr. Rapozo: Correct. Mr. Ho: My understanding is there were investors that preferred that purchased panels and that is what I am speaking of that are safe harbored. My understanding was that that extension was good until close towards the end of the year, maybe not quite to the end of the year that it had to be committed to a project somewhere, so would it be here or Arizona? That would represent thirty percent (30 %) and then most situations that thirty percent (30 %) benefit...when a developer develops it, it is going to go to the benefit of the KIUC in our case, so they will get a thirty percent (30 %) discount either by free energy for "x" number of years or a discounted rate because of the tax credit and that is why some of them are doing it. If the tax credit comes in, this is the rate, if it does not come in, this is the rates here or here, depends whether we can get the tax credit. Mr. Rapozo: And you mentioned about the ten percent (10 %) lot coverage restriction but that already is in place with the Stat. So regardless of what we do, the State already has... Mr. Ho: Yes, but you do not have to follow the herd. Mr. Rapozo: Well we have to follow the State law and that is a concern I have is that we actually are not, this would deviate from the State law this bill here that is in front of us today, would deviate to some extent because the State law is allowing... Mr. Ho: This is more restrictive. Mr. Rapozo: Very much so. So that was a concern of mine. Last week I did pass it out; I voted to support the Committee but I am not so sure I am going to do that today. I think the, I believe the State's initiative is one (1) that is well thought of and I think it took everything into consideration. I am very, very comfortable with the current State law and I think that would encourage, I think this bill actually discourages developers or farmers or whatever you want to call it. Mr. Ho: Well it discourages the smaller farmer and landowner. Mr. Rapozo: Correct. Mr. Ho: To me fifty (50) acres and smaller does not make sense because of that percentage. Mr. Rapozo: But that we will not be able to change. Mr. Ho: But that is besides the point now. Mr. Rapozo: Yes we could not change that. I think in some of the projects that we look at I think some of it does encroach onto some B lands. It may not be a huge encroachment; this bill will prohibit it. COUNCIL MEETING 131 MARCH 14, 2012 Mr. Ho: Well I was told that it could be approached under a special use permit. Mr. Rapozo: Well (inaudible). Mr. Ho: But that is just a lengthening of the process. Mr. Rapozo: Correct. And depending on the size of the project it could, the process for the permit could deter a potential project or solar project to come here. Mr. Ho: My point I guess, I just like to see it simplified as easier as possible because of the competition we face in the world and the interest rates are really low, phenomenal. This is, I do not want to say a perfect storm situation, but in the opposite direction this is a, now is a good, good time. Mr. Rapozo: And from what I understand, the panel rates are a lot cheaper today. Mr. Ho: Yes. They are under $1.00. Mr. Rapozo: Okay. Thank you. Mr. Ho: $1.00 a watt; it used to be $5.00 a watt to build. Like the Kapa'a one (1), I think was one megawatt (1 MW) and it was like $5 million, $5 million plus to develop. Today it would be a percentage less to do. Mr. Ho: Mr. Bynum: Chair Furfaro: Well we are going to be acccepting this as a committee report but when we come up on the bill for second reading if there are members that would like to defer it since we have not received the appropriate information in documented form from KIUC, I could entertain a deferral. That would be up for the other members. Thank you very much for your testimony. We have a question for you. Mr. Bynum: Actually, Mr. Ho, it is good to see you again, your patience is enormous, you have been here all day. I am a little bit at a loss because I was not here last week, but my understanding is, and I think Mel covered it, so if I am being redundant I apologize, by the ten percent (10 %) is out of our purview. Mr. Ho: Right. Mr. Bynum: But basically this bill says if you are going to be under the State provision you need to do a use permit correct? Mr. Ho: Right. Mr. Bynum: So I am going to go defer to my colleagues here. It was recommended we pass tonight so we will see what happens. Okay. Thank you. COUNCIL MEETING 132 MARCH 14, 2012 Mr. Ho: Thank you. Chair Furfaro: Is there anyone else that would like to testify on this? Now remember we are on (inaudible). May I call for the vote to accept the Finance /Parks & Recreation's Committee Report. The motion to approve CR -FPP 2012 -01 was then put, and unanimously carried. RESOLUTIONS: Resolution No. 2012 -18, RESOLUTION CONFIRMING MAYORAL APPOINTMENT TO THE CHARTER REVIEW COMMISSION (James E. Nishida, Jr.): Mr. Chang moved for adoption of Resolution No. 2012 -18, seconded by Ms. Nakamura. Chair Furfaro: Any discussion? Mr. Chang. Mr. Chang: Thank you Chairman. First of all I just wanted to thank Mr. Nishida again for stepping up to serve on the commission. We also did have a letter dated March 12 that Mr. Nishida's term as was stated was from January 1 of this year until December 31, 2013, but it actually starts on January 1, 2012 and expires December 31, 2014; that was a correction that we got per the memo. Chair Furfaro: Yes and I want to thank Paula Morikami for sending that over because that was a question I posed addressing the term of this appointment. Is there any more commentary? This appointment is voice vote? The motion for adoption of the resolution was then put, and carried by the following vote: FOR ADOPTION: Bynum, Chang, Kuali`i, Nakamura, Rapozo, Yukimura, Furfaro AGAINST ADOPTION: None EXCUSED & NOT VOTING: None RECUSED & NOT VOTING: None TOTAL — 7, TOTAL — 0, TOTAL — 0, TOTAL — 0. Resolution No. 2012 -26, RESOLUTION ESTABLISHING NO- PARKING AT ANY TIME ALONG A PORTION OF THE COUNTY ACCESS ROAD IN THE VICINITY OF VIDINHA STADIUM SOCCER FIELDS, LIHU`E DISTRICT, COUNTY OF KAUAI: Mr. Chang moved to defer Resolution No. 2012 -26, seconded by Ms. Yukimura, and unanimously carried. Resolution No. 2012 -27, RESOLUTION AUTHORIZING THE FILING OF THE KAUAI COUNTY 2012 ACTION PLAN (HOME INVESTMENT PARTNERSHIPS PROGRAM) WITH THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, UNITED STATES OF AMERICA, FOR A GRANT COUNCIL MEETING 133 MARCH 14, 2012 UNDER TITLE II OF THE CRANSTON - GONZALEZ NATIONAL AFFORDABLE HOUSING ACT (PUBLIC LAW 101 -625), AS AMENDED: Mr. Chang moved to defer Resolution No. 2012 -27 to the April 11, 2012 Council meeting, seconded by Mr. Kuali`i, and unanimously carried. Resolution No. 2012 -28, RESOLUTION AUTHORIZING THE FILING OF THE KAUAI COUNTY 2012 ACTION PLAN (COMMUNITY DEVELOPMENT BLOCK GRANT) WITH THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, UNITED STATES OF AMERICA, FOR A GRANT UNDER TITLE I OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974 AND 1987 (PUBLIC LAWS 93 -383 AND 100 -242), AS AMENDED: Mr. Chang moved to defer Resolution No. 2012 -28 to the April 11, 2012 Council meeting, seconded by Mr. Kuali`i, and unanimously carried. BILLS FOR SECOND READING: Bill No. 2424, Draft 1 - A BILL FOR AN ORDINANCE TO ALLOW SOLAR ENERGY FACILITIES IN THE AGRICULTURE DISTRICT: Ms. Nakamura moved to approve Bill No. 2424, Draft 1, on second and final reading, and that it be transmitted to the Mayor for his approval, seconded by Mr. Kuali`i. Ms. Yukimura: Mr. Chair, I want to ask for a deferral on this because I want to work on some amendments but I need to understand further what KIUC is saying. So if it is okay, I would like one (1) more deferral to the next meeting. Chair Furfaro: There is a request for a deferral. A deferral has precedent over anything else. You need a second. I will move to defer if everybody is okay or there is no discussion about it; I just want to make sure. Ms. Nakamura: I think KIUC's testimony today was very helpful and I think it is important to digest that information. I had a chance to look at it and it shows how very little more of our land in solar or PV energy will be accepted into the system, which really limits the amount of acreage needed; to my calculation, it was very minimal. I think it would be fine to, thirty to forty (30 to 40) acres would be the most needed. Ms. Yukimura: So I am thinking of an amendment that says something like that or sets some limits. But there is also, people can just come in and get permits and sit on them too. So I just need some time to digest this and see if there is a way to manage it. Ms. Nakamura: Okay. I think the amendments that we did last time worked for me because it excludes the B lands which based on the Planning Department's data that they presented last week, and Councilmember Bynum was not here, showed that a lot of the B lands would be in the category of COUNCIL MEETING 134 MARCH 14, 2012 preliminary IAL designation. So that is why I felt comfortable with the amendment, but a deferral will be fine. Ms. Yukimura: Thank you. Chair Furfaro: Mr. Rapozo, I am not going to recognize Mr. Chang yet because he is going to second a deferral. Mr. Rapozo: I think I made my comments and concerns at the committee report. I do want to make note that we were, last week, the information that we got from the Planning Department was quite different from what we got from KIUC today. Chair Furfaro: Yes. Mr. Rapozo: So that is troubling because I think... this bill is being submitting by the request of the Planning Department, correct? I mean Councimember Nakamura is introducing it, but I believe it was by request of the Planning Department. What is troubling is the information that was presented to the written questions was, again, basically it led me to believe that KIUC had no limit, which would raise a concern that hey we better get a handle on this because' we may lose all our B lands if we allow it, and then today we hear from KIUC that is not even true, that is not even accurate; so that is troubling. What we find out today is that the number of acres of land that could be affected is very minimal when you look at the big picture. So the other thing I asked for last week was if anyone had gotten any input from the Farm Bureau; we have not seen anything from the Farm Bureau as of this time. So obviously I will not support, I mean I will support the deferral if people need more information. I am prepared to vote today with the information that was received by KIUC today. I think for me, anyway, I think we need to try and encourage to get to that fifty or forty (50 or 40) acres as soon as possible. The window of opportunity as Mr. Ho has stated is now, and so I will not be supporting the bill, I will support the deferral today for the purpose of obtaining more information. But as far as what KIUC provided today, I do not believe that the ag lands are in any danger. I think the State has set out the parameters for the use of ag lands for solar energy facilities, and I am very happy and satisfied with those restrictions set forth by the State law, so I will not be supporting the bill. Thank you. Chair Furfaro: Do we have a deferral seconded? Ms. Yukimura: I think Councilmember Nakamura. Chair Furfaro: Councilwoman Nakamura. COUNCIL MEETING 135 MARCH 14, 2012 Ms. Nakamura: I am sorry, I just want to confer with staff because the request was made to the Farm Bureau and I just learned that we, I think they met last night, and so we just received something this afternoon. I think a deferral is appropriate to have time to look at that testimony because they did attempt to address our concern. Ms. Yukimura: In that case, Mr. Chair, I move to defer. Chair Furfaro: Do not second it yet, I have yet to speak. My statement about having three (3) different numbers from different sources is a factual statement; we have a new proposal this morning. I also think the commentary from the Farm Bureau is extremely important, but we need to get a real grip on this. And so there is some very strict expectations I am going to have on the Planning Department to get us this information as accurate as they possibly can. I will support the deferral. Upon motion duly made by Ms. Yukimura, seconded by Mr. Kuali`i, and unanimously carried, Bill No. 2424, Draft 1 was deferred. Chair Furfaro: Now I just want to make sure one (1) housekeeping item before we, we did cover the request for deferral on the items from the Police Commission as well as from the County Attorney's Office? We did vote on that, did we not? Mr. Rapozo: No, we did not. Chair Furfaro: So you folks both have correspondence from the County Attorney's Office as well as a request from Ernie Kanekoa, Chairman of the Police Commission, to have a deferral on this item. Mr. Rapozo: Which item are we on Mr. Chair? Were we on C 2012 -67? Are we going into Executive Session? We still have C 2012 -67, C 2012 -78, and C 2012 -79 that we have not addressed yet on the agenda. Chair Furfaro: This is why everybody is making requests, what were the numbers again? Mr. Rapozo: Page 3, C 2012 -67, C 2012 -78, and C 2012 -79. There being no objections, the rules were suspended. AMY ESAKI, FIRST DEPUTY COUNTY ATTORNEY: For C 2012 -79 it will be a deferral. COUNCIL MEETING 136 MARCH 14, 2012 Chair Furfaro: But these items we need to go into Executive Session first. Chair Furfaro: What I am asking is one (1) of those items is what I just referred to? you. Ms. Esaki: Yes. Ms. Esaki: Yes. C 2012 -79 and also ES -531. Chair Furfaro: Yes I have them. That relates to these, thank Mr. Rapozo: Mr. Chair? Chair Furfaro: Yes. The meeting was called back to order, and proceeded as follows: Mr. Rapozo: Before we entertain a motion to defer on C 2012 -79 and Executive Session 531, I would like to make a comment. Chair Furfaro: You are recognized on the floor and you want to comment on C 2012 -79 and what was the other one? Mr. Rapozo: The comment will be on C 2012 -79. C 2012 -79 Request (03/05/2012) from the Office of the County Attorney, for authorization to expend funds up to $10,000.00 to retain special counsel to represent the Police Commission in obtaining a legal opinion as to Charter Sections 7.05A and 11.04 and related matters: Mr. Bynum moved to receive C 2012 -79, seconded by Mr. Kuali`i. Chair Furfaro: You have the floor. Mr. Rapozo: Thank you. I Chair Public Safety and I have been relatively quiet regarding this matter in the hopes that it would have taken its course and I have received the communication from the County Attorney as well as Mr. Kanekoa. I believe that the language on the posting was sufficient for us to approve special counsel funds for the purpose of obtaining a legal opinion. I will concede that it is not as clear as I had hoped and I understand that the Police Commission will be addressing the language so we can specifically ask for a declaratory judgment. I do want to make a few comments because I think we need COUNCIL MEETING 137 MARCH 14, 2012 to act expediently on this matter. I think although the Administration and the Chief and the Commission had a press conference the other day, I watched it in full, I watched the entire conference, and it appeared to be a situation where there was going to be some consensus and some cooperation. But, I will tell you, Mr. Chair, as you have given us the flexibility as committee chairs to communicate directly with the Department Heads, I have been in communication with the Police Chief from the beginning. Whether he was working or on leave, the Mayor says he was on leave and the Commission says he was working, I just want to make a statement because I think what occurred subsequent to that meeting requires again some expedient action by this Council. The Chief returned to work and I spoke to the Chief yesterday, the Chief returned to work on Monday I believe. He reinstated or brought back the two (2) Assistant Chiefs from their leave, which was his prerogative, they returned to work, they were given their credentials and all of that; however they were prohibited from accessing their computers. I spoke to the Chief and I told the Chief that I was going to be sharing this because I think it is important that we as a Council understand what is going on and why it is important that this needs to get infront of a court as soon as possible. When the department made the inquiry with the IT Department that they needed these computer terminals accessible by two (2) Assistant Chiefs of the Police Department they were told under strict orders of the County Attorney's Office not to provide access; that is unacceptable, Mr. Chair, and my fellow Councilmembers. I do not understand what is going on. I do know that this issue with the authority of who controls the Police Department is of such importance because the public safety is at risk. When you have two (2) Assistant Chiefs that run bureaus that cannot access computers because somebody in the Administration, whether it is the County Attorney or the Mayor, has decided that they should not have that access, I believe we have some serious problems. So I understand the request, Mr. Chai. If there is anything that we can do to expedite, I realize that they are having a Commission meeting on the 23rd I guess it was? get us. Chair Furfaro: Yes. Mr. Rapozo: So that would take us up to, what would that Chair Furfaro: The 28th. Mr. Rapozo: It would be the 28th. So that is actually two (2) weeks from now, that is long. I think what has transpired, what the Chief also told me was that they had confiscated the personal external drives from one (1) of the Assistant Chiefs that was not connected to the computer. They had no business, in my opinion, of taking that. I guess what I am saying is it needs to be determined in court, not by an attorney and another attorney dueling opinions, and I agree with you, Mr. Chair, it needs to get in front of a judge and the language probably needs COUNCIL MEETING 138 MARCH 14, 2012 to be clarified. I believe that somehow within our scope of authority, I do not know how to get that message across, that hey let us all grow up and let us all allow the Department Heads to run the department as they see fit and let us not interfere whether it is the Attorney's Office, or the Administration, let us not interfere with the daily operations of the Police Department because it does impact public safety. I am as you can tell very, very frustrated, because after watching the press conference I thought we had reached some type of agreement, but as you can tell they have not. There is still some interference by the Administration or the County Attorney's Office that needs to be rectified. Thank you for the time considering the request. I just, Mr. Chair, I do not know if the Police Commission can, maybe if you can communicate if it is possible for them to get an emergency special meeting or if we should do one (1). I know that this kind of behavior has to stop. Chair Furfaro: Let me make a few comments here, and Mr. Rapozo, so noted are your concerns. I think you know that I have raised the same concerns. First of all the deferral request comes from the Police Commission Chairman. If you read through it, you will see very specifically that they are asking it to be not more than thirty (30) days; that is the outside range, that is not the inside range. Secondly, I think this technicalities here. I think there has to be dialogue between the Police Commission and the Attorney's Office because we do not want another attorney that interprets this particular process to be challenging our attorneys. What we need to get to is an attorney that in fact represents the Police Commission if they want a declaratory judgment, that is what the communication has to be. And so having spent time with Mr. Kanekoa as co- employees with ITT Sheraton, we go back a long way. He made this request to be not more than thirty (30) days, and I would like to honor the Police Commission Chairman's request, but I want to underline not more than thirty (30) days. They have a special meeting in thirteen (13) days, they may be sending us a communication after that, so on that I would like to ask you to honor this deferral. Mr. Bynum. Mr. Bynum: I did not comment on this at all because I still think there are moving pieces that we are not privy to and maybe should not be, but I just want to make sure that we are posting this correctly because I am reading this letter from the Police Commission and it is saying we want this money for a declaratory ruling, but the posting says to get an opinion. And so... Chair Furfaro: And there is the conflict. Mr. Bynum: It is just a technical question about whether we should be receiving this item and reposting with different language, that is a question. COUNCIL MEETING 139 MARCH 14, 2012 Chair Furfaro: So we can do either. I want to make sure that a deferral has precedent. Did we have a motion for a deferral and a second? No. We had no motions because we would not be having this dialogue if we did. Again both Mr. Bynum and Mr. Rapozo has picked up on the narrative problems that we are having. In principle we have the request from the Commission not more than thirty (30) days. Vice Chair. Ms. Yukimura: I am just asking if we want to honor the Police Commission at this time. Can we still defer it for one (1) week or whatever it is just so that it is on the agenda? Maybe it is not a deferral and maybe it is a reposting. Just so that we are poised to act in case things change, in case they come to us and say we have had a meeting, we actually want to move this or that, at least it is on the agenda. We can still defer further if that is in the moment that is what we should do, but we also have the option and do not have to wait for another reposting. Chair Furfaro: And we also have the option within two (2) weeks to post a new item too regardless of the deferral. Ms. Yukimura: That is correct. I do think obtaining a legal opinion or obtaining a declaratory judgment are two (2) different things. Chair Furfaro: They are two (2) different things and I want to make sure that the commissioners understand what they are asking the money for. What clarifies this would be getting a court to define for us the interpretation. What they are asking for is, in my opinion, another attorney to give a legal opinion. Now the item I want to know on is are we going to honor the request for the deferral at this point, which we have in writing from the Police Commission Chair for not more than a thirty (30) day deferral? Am I going to get a motion. Ms. Nakamura: I have a question. Chair Furfaro: Go right ahead. Ms. Nakamura: Are we going into Executive Session to discuss this matter? Chair Furfaro: No. If we defer it, it comes up in not more than thirty (30) days yet to be determined by the Chair. If inside of two (2) weeks, we want to post a new item; we can post a new item. Ms. Yukimura: Question to follow -up Councilmember Nakamura's question. COUNCIL MEETING 140 MARCH 14, 2012 Chair Furfaro: Would you yield the floor for a question? Ms. Nakamura: Yes. If the action is to request a deferral, that is not what item C 2012 -79 is about. Chair Furfaro: Yes. But I did not write this request, this is what we posted on the agenda, this is what the Police Commission sent us. Ms. Nakamura: I will yield the floor. Mr. Kuali`i: I think I might try. I think what she is saying is that in our posted item it says legal opinion and it needs to be reposted as declaratory ruling. So whether that happens in two (2) weeks or less than thirty (30) days, then instead of deferring this we should just receive this. Chair Furfaro: We should receive this and know that we reserve the right for a new posting anytime within the thirty (30) days as requested by the Police Commission Chair. There being no objections, the rules were suspended. Ms. Esaki: Chair, what you could do is receive it and at a later date and the commission can submit a new posting language if that would be easiest for everybody. Chair Furfaro: I want to make sure that everybody understands, I am not confused, I am reading what the Police Commission sent us. Ms. Esaki: We have not seen that, but based on what was read, for this posting language you might want to receive it and allow time for it to be either resubmitted as is written or in a new language. The meeting was called back to order, and proceeded as follows: Mr. Bynum moved to receive C 2012 -79 for the record, seconded by Mr. Kuali`i. Chair Furfaro: There is a motion to receive and a second, and everybody has a copy of the Commission Chair's correspondence. If not, I will give you one (1). The floor recognizes Mr. Rapozo. There being no objections, the rules were suspended. COUNCIL MEETING 141 MARCH 14, 2012 Mr. Rapozo: Thank you. Amy what was the request from the Commission, the original request? Ms. Esaki: I will have to defer to Jennifer on that. JENNIFER WINN, DEPUTY COUNTY ATTORNEY: The original request is as posted. Mr. Rapozo: Just that they wanted a legal opinion? Ms. Winn: Correct. Mr. Rapozo: Would it be appropriate for us as a Council to approve the request and also authorize the commission to seek a declaratory judgment if they so choose using this language? If we approve this, they retain special counsel; I do not understand why that special counsel could not as part of obtaining a legal opinion seek a declaratory judgment. Ms. Winn: What you authorize is up to you as obviously the Council. At this point in time they have not requested anything other than a legal opinion. Mr. Rapozo: Okay. But would it be appropriate for this Council let us say if I made a motion to approve the request as submitted for $10,000.00 to retain special counsel to represent the Police Commission in obtaining a legal opinion as to Charter Section 7.05A and 11.04 and related matters, and also to authorize the Police Commission to seek a declaratory judgment should they so desire? Ms. Winn: My only concern would be Sunshine Law. As posted, it is for one (1) particular item. There could be an issue of whether the public had knowledge that that is what this item was going to be about. Mr. Rapozo: Okay. So you are suggesting the language that it would include the declaratory judgment? Ms. Winn: For posting I think that would be smart. Mr. Rapozo: Okay. Chair Furfaro: For a new posting? Mr. Rapozo: Yes. COUNCIL MEETING 142 MARCH 14, 2012 Chair Furfaro: I want to make sure that this correspondence is asking for a deferral, which further complicates the Sunshine Law. Ms. Winn: I understand. The meeting was called back to order, and proceeded as follows: Chair Furfaro: So we have a motion to receive this at this time and a second. The motion to receive C 2012 -79 for the record was then put, and unanimously carried. Chair Furfaro: Thank you very much. May I have the County Attorney up. There being no objections, the rules were suspended. Ms. Esaki: Council Chair, were you considering deferring the item on the ES -532 or are you going to proceed with that? ES -532 regarding the fees for the bus fare. Chair Furfaro: I had thought we were doing a deferral on that. That was a deferral on... Ms. Esaki: ES -532. Chair Furfaro: Yes, that was the intent. Ms. Yukimura: Point of clarification. So this is the second opinion? Ms. Esaki: This is the second opinion and we were going to have a consultation before you release. Ms. Yukimura: And then look to release both of the opinions? Ms. Esaki: Right. I am just asking because it was mentioned earlier. Chair Furfaro: Let me make sure I understand, the deferral was made earlier because Council Vice Chair was not going to be here. COUNCIL MEETING 143 MARCH 14, 2012 Ms. Esaki: Right. Chair Furfaro: So the world has changed. Ms. Esaki: So we are proceeding, that is fine. Chair Furfaro: The world has changed. Do you want to pursue it? Ms. Yukimura: It will take probably five (5) minutes, so why not we do it then. Chair Furfaro: So that we are all clear, at the time Vice Chair had asked to be excused from the evening session but she is here now so we will take that off. Then the answer to your question is yes we are going to deal with it so please address it in your narrative. Thank you. Ms. Esaki: We would like to request to go into Executive Session on: EXECUTIVE SESSION: ES -530 Pursuant to HRS sections 92 -4, 92- 5(a)(4), and section 3.07(e) of the Kaua`i County Charter, the Office of the County Attorney requests an executive session with the Council to provide the Council with a briefing on the retention of special counsel for a limited purpose regarding the claim against the County by Shane N. Matias, filed on June 2, 2010 and related matters. The briefing and consultation involves consideration of the powers, duties, privileges, immunities, and /or liabilities of the Council and the County as they relate to this agenda item. ES -532 Pursuant to Hawai`i Revised Statutes Sections 92 -4, 92- 5(a)(4), and Kaua`i County Charter Section 3.07(E), the Office of the County Attorney, on behalf of the Council, requests an executive session for Council to consult with the County Attorney regarding the Council's release of the County Attorney's written legal opinion dated February 16, 2012, regarding Bill No. 2427 Relating to Bus Fares and related matters. This briefing and consultation involves the consideration of the powers, duties, privileges, immunities and /or liabilities of the Council and the County as they relate to this agenda item. ES -533 Pursuant to HRS sections 92 -4, 92- 5(a)(4), and section 3.07(e) of the Kaua`i County Charter, the Office of the County Attorney requests an executive session with the Council to provide the Council with a briefing on the retention of special counsel to provide legal counsel for the County regarding development of the landfill and related matters. The briefing and consultation involves consideration of the powers, duties, privileges, immunities, and /or liabilities of the Council and the County as they relate to this agenda item. COUNCIL MEETING 144 MARCH 14, 2012 There being no objections, the meeting was called back to order, and proceeded as follows: Chair Furfaro: Thank you very much. It is to be noted that after we review this item we will be required to come out and take a vote in open session. For the benefit of Ho`ike, you need to be on call around the building when we come out of that session. Amy, thank you very much because it has been a long day. ES -531 Pursuant to HRS sections 92 -4, 92- 5(a)(4), and section 3.07(e) of the Kaua`i County Charter, the Office of the County Attorney requests an executive session with the Council to provide the Council with a briefing on the retention of special counsel to represent the Police Commission in obtaining a legal opinion as to charter Sections 7.05A and 11.04 and related matters. The briefing and consultation involves consideration of the powers, duties, privileges, immunities, and /or liabilities of the Council and the County as they relate to this agenda item: Mr. Rapozo moved to receive ES -531 for the record, seconded by Mr. Bynum. Mr. Rapozo: We did not cover ES -531 and we did not take action on that. We did the communication which was C 2012 -79 but we did not do ES -531. I guess I would ask if any of the Councilmembers had a desire to ask the Attorneys any questions pertaining to the Police Commission issue. If there is no desire, that is fine, I have some questions. Chair Furfaro: I think my position was that since we were going to look at posting a new item that this item would not come up today. So I will take your lead on posing the question, we do not necessarily need to do this now, but until we repost, members your choice. The motion to receive ES -531 for the record was then put, and carried. Mr. Rapozo moved to convene in executive session for ES -530, ES -533, seconded by Ms. Yukimura, and carried by the following vote: FOR CONVENING IN EXECUTIVE SESSION: Bynum, Chang, Kuali`i, Nakamura, Rapozo, Yukimura, Furfaro AGAINST CONVENING IN EXECUTIVE SESSION: None EXCUSED & NOT VOTING: None unanimously ES -532, and TOTAL — 7, TOTAL — 0, TOTAL— 0. There being no objections, the meeting was in recess at 8:42 p.m. The meeting was called back to order at 10:14 p.m., and proceeded as follows: Chair Furfaro: I want to take a moment of personal privilege to thank Lyle and Larry for all their fine work recently through this very disastrous period of time with roads going out and flooding. I think I had an opportunity to thank you ealier, but neither of you were in the building. I think you were out shoveling mud somewhere. But gentlemen, on behalf of the County Council, I just want to thank Public Works Engineering for your fine effort in responding to our needs. Everything is not perfect yet, but we are constantly making improvements thank to your help. Vice Chair Yukimura. COUNCIL MEETING 145 MARCH 14, 2012 Ms. Yukimura: I second the motion and if you could convey to your road crews and all the people out there on the front lines, because they really did a valiant job and we are proud of them and very thankful. There being no objections, the rules were suspended. LARRY DILL, COUNTY ENGINEER: I appreciate the words of thanks and we will be sure to pass that on to the guys that deserve all the credit, the guys that were on the front lines out there in the rain, Public Works roads crew, our wastewater crews responded to huge amounts of water entering the wastewater systems, our engineering guys also did a lot of support. Those three (3) divisions in particular deserve a lot of the credit, so I will be sure we pass that on. Thank you very much. Chair Furfaro: Members any more comments? Mr. Chang. Mr. Chang: Thank you. I was just going to echo and say thank you and I know it was a great learning experience for you, but it was nice to know that on the Ha'ena side of Hanalei where you have several employees, they were able to deploy. Mr. Dill: Three (3) employees. Mr. Chang: Correct. They were able to deploy because the State guys could not get in, so the County people were able to help the State people out there where they would normally not be able to get any reach. To the three (3) and the equipment and everything else, what a great blessing. Thank you. Chair Furfaro: And so noted with the Engineering Head when you said several employees he quickly corrected you, because several is more than four (4), a few is three (3). Can I just ask to give you a round of applause in appreciation. Thank you. We are back in session to take action on two (2) items, item C 2012 -67. The meeting was called back to order, and proceeded as follows: C 2012 -67 Request (02/23/2012) from the Office of the County Attorney for authorization to expend funds up to $50,000.00 to retain special counsel to provide legal counsel for the County regarding development of the landfill and related matters: Mr. Chang moved to approve C 2012 -67, seconded by Mr. Bynum. Chair Furfaro: May I have discussion. Mr. Rapozo. Mr. Rapozo: Unfortunately I will not be able to support this allocation for the $50,000.00. I am concerned that, I think as you see the next item come up, there is a scope, an estimate, the total cost will be, I am still unclear as to why we need to hire an attorney, a special counsel attorney. I understand we discussed a lot of the issues in Executive Session, but I came out of there still unclear of what this attorney would be needed for, and more troubling was the failure to put some sort of ballpark figure on it. I just cannot support any allocation without some sort of assurance that it is going to be within a ballpark figure at the end of the day, so I will not be supporting the appropriations. Chair Furfaro: Vice Chair. COUNCIL MEETING 146 MARCH 14, 2012 Ms. Yukimura: I am not going to support the appropriation either. I am not sure that we need it. We are hiring a firm for $1.8 million that is supposed to be an expert in doing an EIS. Actually, I also have a larger problem with it and that is the credibility of the whole project and how it is being managed, and I do not feel comfortable appropriating more money when I do not have the confidence that the project is being well managed. Chair Furfaro: Mr. Bynum. Mr. Bynum: We have to site a landfill, we have to, we have had to for a long time, we had a solid waste plan that the Council adopted, we are behind schedule on almost every aspect of that plan. When we adopted that plan we all talked about a sense of urgency and how important this was for the County to get this done. One (1) of the reasons is we could do an expansion of the Kekaha Landfill, but we did not want to go any higher, no more higher landfill. Now because of delays we are absolutely counting on going higher with that landfill which has added to our cost enormously, we all wanted to avoid that, I am very upset that we have not. But now that is it, we have no other options. Then it's like okay bail it in bundles and ship it to Arizona; it is irresponsible. This project is the biggest project; siting a landfill or a nuclear power plant is the hardest thing to do in the world. We need to make sure we get it done right and get it done properly. Our County Attorney along with Public Works has come to us and said we have got a team, we are solid, we are working really hard, we meet weekly. The County Attorney has made it clear that he is responsible for this and is providing oversight with his Deputy, and they are all coming to this Council and saying we want to hire the best attorney about EIS in the State that we can get to make sure that we are dotting all the "i" and crossing all of the "t." Maybe we do not need that, but if they catch one (1) thing, it could be a wording disaster. I cannot believe we are even suggesting that. $50,000.00 is less than three percent (3 %) of the cost of the $1.8 million we are spending with this fancy firm AECOM. Our people are coming to us and saying help us make sure we get it right, give us the expertise we need, I cannot believe we are even discussing it. I support this one - hundred percent (100 %), we have to have five (5) votes here tonight, we have already had two (2) people say no. I have never done this before, but I am begging you, I think the Chair did that once before. Let us give these folks this extra level of oversight to make sure we do not hit a disastrous wall. If we are uncomfortable about the management, that would just argue more for this kind of expert oversight. Thank you. Chair Furfaro: Thank you. If there is nobody else that wants to speak the first time, Councilwoman Nakamura. Ms. Nakamura: I want to echo the comments of Councilmember Bynum. This is the largest CIP project for this County. It is a time sensitive project. The Department of Public Works leadership is stepping up to the plate and being personally involved in implementing this project. The County Attorney has told us that it does not have the expertise in EIS and (inaudible) laws and I believe that this is a good insurance. The funding is in the County Attorney,s budget, and so I think the allocation of the funds is a good insurance policy that we conduct the process in a legally defensible way. So I will be supporting this request. Chair Furfaro: Any more commentary? I do want you to know that as Chairman, I would very much appreciate getting us to five (5) votes for this, and also a condition of having some kind of briefing from the special COUNCIL MEETING 147 MARCH 14, 2012 counsel within sixty (60) or ninety (90) days into this process would be mutually beneficial. I think Mr. Bynum said it correctly, it is a very big project that we want to make sure we do not stub our toes in the process. Mr. Chang or Mr. Kuali`i, did you want to speak? Mr. Kuali`i: Thank you Mr. Chair. I was not satisfied with my answer about AECOM and I thought that as a part of the initial negotiations in contracting AECOM and being that they were the best in the Country and the world, I think as it might have been said, that if I had some kind of more information about why it is necessary beyond them guaranteeing their work that they are providing for us. I think there was talk about how the game is evolving, but where is the numbers that show me that when a County or a State or another entity hires AECOM to do their EIS, ninety percent (90 %) of the time that entity also gets special counsel because it needs to ensure the work that AECOM does. If they showed me that number, I could support this; without that, if the number was five percent (5 %) or ten percent (10 %), then it seems like we are just wasting $50,000.00 in my opinion. That they will do the work they need to do and it will be legally defensible and if the numbers show me that, then I can be sure that the $50,000.00 will be a waste or the opposite; if they show me that it is necessary and it has been done by all other entities, or eighty percent (80 %) or ninety percent (90 %) of other entities who hire AECOM, then I could support it. Without that information tonight I will not support it. Chair Furfaro: Mr. Chang, you are the only one (1) that did not get to speak the first time. Mr. Chang: Thank you. Well I guess we can pretty much count the numbers. However, I would like to say that the money again is coming from the County Attorney's Office. I believe that they have done a very, very good job by not seeking as much outside counsel as was done much more in the past. We have saved a lot of money. I do not know if I am exaggerating, but upwards to maybe $1 million or so that was saved because we used the expertise of our County Attorneys in- house. Quite frankly, the job of the Public Works led by Larry Dill and Lyle Tabata, they seem to have things in their busy schedule pretty much under control, and along with our County Attorney, if they are assuring us that we are on the right track and they are telling us and recommending strongly to us that we support the $50,000.00, I think it is $50,000.00 well spent and it is needed to move forward. I think that is going without question. I too would, I do not want to say recommend, advise, or plead, but being that we need a super majority vote, I think we should give our new sheriffs in town, if you will, Mr. Dill and Mr. Tabata and our County Attorney, I think we should give them the benefit of the doubt and obviously we can always get reports back albeit ninety (90) days. I am definitely going to be supporting this $50,000.00 and I think it is something that I think at this point needs to be done, and we need to count on this outside expertise to assist this County. Thank you. Chair Furfaro: Thank you Mr. Chang. Vice Chair Yukimura then Mr. Rapozo. Ms. Yukimura: Councilmember Bynum has said that we are behind schedule on every aspect of the Integrated Solid Waste Management Plan, he has also said that we are having to raise the landfill when that was never anticipated, all of these are signs that we are not managing our Solid Waste Division well. The Public Works leadership is having to step -up to oversee this COUNCIL MEETING 148 MARCH 14, 2012 project because it is not being managed well. I do not think that $50,000.00 in legal counsel is going to solve the main problem. I think drastic action is necessary to send a message to the Administration that they have to fix the core problem so that we can have a successful landfill, that is my goal, same as yours, Councilmember Bynum. But we are not going that way right now, and if we want to go that way, we have to fix the main problem. Chair Furfaro: Mr. Rapozo. Mr. Rapozo: Thank you. I guess I could not agree with you more. I think there is some serious systemic problems, I guess is the way you call it. I keep hearing the number $50,000.00; it is not $50,000.00. $50,000.00 is what is being asked for. There is no commitment, no assurance of how much this endeavor is going to cost. So just make sure that we understand that if it was $50,000.00, I would support it today. If I knew that $50,000.00 was going to cover it for a short term contract to give us advice, I would support it because I do agree that $50,000.00 is a small price to pay if we can get the assurance. I have to again like Mr. KipuKai Kuali`i said $1.5 million or $1.8 million for this firm to do this EIS and then we have to hire $300.00 or $400.00 or $500.00 an hour attorneys to make sure they are doing it right, I think is not proper. And then the bigger issue I have and it's, last year we saw the restructuring of the Administration, we saw the addition of an Environmental Services Manager, we saw an addition of a CIP Manager, we see all these high -level positions in the Administration, we went through this in the last budget to focus and target these specific types of projects, and it is not being done. And then they come to us and say hey we need money, we do not know how much, it may be a lot it, we do not know... Chair Furfaro: I just want to take a moment to caution us about the item that is on the agenda. I understand your concerns about the expanded staffing levels and so forth, but quite honestly, I think we need to focus on the item that is on the table, which is an approval of $50,000.00 for special counsel which would give us a report sixty (60) to ninety (90) days out versus the dialog of performance issues related to the expanded staffing levels. I am a little concerned. Mr. Rapozo: Okay. I will end there then. Chair Furfaro: Thank you. Before I call for the vote, is there any opportunity, I mean I can count what is happening here, but is there anybody that would reconsider the fact that if we entered into the $50,000.00 agreement for the legal consultation that there is some reassurance that within sixty (60) or ninety (90) days we have an opportunity here from this legal counsel and know what the long -term prospects are of that either growing or knowing exactly where we are. Is there anyone willing to reconsider at this point if we had that briefing two (2) months into this process? Vice Chair Yukimura. Ms. Yukimura: I just want to say that the $50,000.00 is not going to solve the main problem. Chair Furfaro: I heard you say that. Ms. Yukimura: And that is why I do not want to throw good money after bad. But I will reconsider if we get some response from the Administration to address the problems I am seeing. COUNCIL MEETING 149 MARCH 14, 2012 Chair Furfaro: Mr. Bynum and then Mr. Chang. Mr. Bynum: I will just take one (1) more shot at this. We heard that we are at a critical juncture where a portion of this document is going to be finalized soon, that this initial funds will definitely give an opportunity for the special counsel to look at the work that has been done thus far. I feel pretty strong about this because I am really concerned about how dire the consequences are if we mess up here, we are right up against the wall and there is nowhere else to go. And so I will make a commitment that I will not vote for the next $50,000.00 if we get this one (1), if they come back. Even if it is limited to this $50,000.00 it is going to provide what our managers asked for, a critical look at this, a comprehensive look at work thus far at a fairly critical junction. I will do cartwheels if, I do not think I can, but I think this is important, I really do. I avoided many times on this Council coming back and saying I told you so, as I know we all have, because we can look back at the public record and say I told you so, and that does not do anything productive. I do not want to say I told you so on this one (1). Chair Furfaro: I am not sure I ever used that term, but your comments are well received for the structure they are. Mr. Kuali`i. Mr. Kuali`i: I do not know that anything is ever so critical and so do- and -die that it could not come back to us in two (2) weeks or four (4) weeks, and I think that Councilmember Rapozo's concern about specificying what the $50,000.00 is for in limiting to that $50,000.00 is a good one (1), and they can come back with that. I think my questions about AECOM's record and history and the need for entities, government entities that hire AECOM, the history of that being the evolving, trend or the game or how the game is evolving, that they can get those numbers and show that to us and get what Mr. Rapozo is asking and show that to us. Maybe then the vote can be different, but tonight we do not have that. Chair Furfaro: Councilwoman Nakamura. Thank you for your comments. Ms. Nakamura: Maybe to add on to Councilmember Kuali`i's comments, if we could get the history of the number of major projects of EIS's that AECOM has done and their success rates and challenges so that we can understand their success in producing a defensible EIS. That data might be helpful to move this forward. Chair Furfaro: I do not think we are going to influence any other outcome than what the vote seems to be, so I will call for the vote. Mr. Chang. Mr. Chang: I would like to say though, I think Councilmember Yukimura might be perhaps thinking otherwise, but I would like to say two (2) weeks ago when we had this you shared your concerns, and yes there was a lot of wrongs in the past and we mentioned that, but listening to our Engineer Mr. Dill, he had a lot of passion and he spoke compassionately that he is taking the forefront and the responsibility. It may not be his sole duty, but he is the head, and Mr. Tabata also echoed the fact that they are on top of it and although there is an assigned Project Manager, they spoke upon the fact that they are willing to take the responsibility and so did our County Attorney. But, keeping in mind we have saved a lot of money, the $50,000.00 is coming from the County Attorney's coffers, and they have been able to do a lot of work in -house with our own attorneys. I would like to give them the benefit of the doubt, as Mr. Bynum said. If anyone COUNCIL MEETING 150 MARCH 14, 2012 were to come back or they would come back for another $50,000.00, he said right off the bat we will not support it; I do not think any of us would support it, so I am just going to, let us see where the chips fall, but maybe because "y" is Yukimura, would be the last of the last, and you can kind of see and maybe something might happen at the very end. Chair Furfaro: Okay I do not think we are having discussion that really is going to change the outcome of what I have heard at the table. Mr. Rapozo: Let us call for the vote. Chair Furfaro: I am calling for the vote, can I have a roll call please. The motion to approve C 2012 -67 was then put and failed approval by the following vote: FOR APROVAL: Bynum, Chang, Nakamura, Furfaro AGAINST APPROVAL: Kuali`i, Rapozo, Yukimura EXCUSED & NOT VOTING: None RECUSED & NOT VOTING: None Chair Furfaro: Knowing where we are at now, Christiane Nakea, could I ask that you make a special note of the communication that those voting no have implied that they would like to hear from the Administration. Those include comments from Vice Chair Yukimura, Mr. Rapozo, as well as Councilmember Kuali`i. So a 4 -3 vote, the allocation of this money fails because we do not have a super majority. Let us go to the next item, I believe it is item C 2012 -78. C 2012 -78 Request (03/02/2012) from the Office of the County Attorney, for authorization to expend funds up to $10,000.00 to retain special counsel for a limited purpose regarding the claim against County by Shane N. Matias, filed on June 2, 2010 and related matters: Ms. Yukimura moved to approve, seconded by Mr. Bynum. Mr. Rapozo: I just have a really quick comment. Chair Furfaro: Go ahead. TOTAL — 4, TOTAL — 3, TOTAL — 0, TOTAL — 0. Mr. Rapozo: I know Jennifer left, but I just want to say that contrary to the prior item, this item was well defined, the scope was well defined, and the narrative for the purpose of these funds were very clear. I have no problem supporting this allocation. Thank you. Chair Furfaro: May I thank you for your compliment directed at the County Attorney's Office and Jennifer; I concur, she did an excellent job of briefing. May I call now for a roll call vote. The motion to approve C 2012 -78 was then put, and carried by the following vote: COUNCIL MEETING 151 MARCH 14, 2012 FOR APPROVAL: Bynum, Chang, Kuali`i, Nakamura, Rapozo, Yukimura, Furfaro AGAINST APPROVAL: None EXCUSED & NOT VOTING: None RECUSED & NOT VOTING: None TOTAL — 7, TOTAL — 0, TOTAL — 0, TOTAL — 0. Chair Furfaro: I believe that ends our business of the Council today. I want to thank everybody for a full day of work. We are now adjourned. ADJOURNMENT. There being no further business, the meeting was adjourned at 10:38 p.m. Respectfully submitted, /il RICKY WATANABE County Clerk