HomeMy WebLinkAbout06/13/2012 Regular Council Meeting COUNCIL MEETING
JUNE 13, 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, June 13, 2012 at 9:38 a.m., after which the following
members answered the call of the roll:
Honorable Tim Bynum
Honorable Dickie Chang
Honorable KipuKai Kuali`i
Honorable Nadine K. Nakamura
Honorable Mel Rapozo
Honorable JoAnn A. Yukimura
Honorable Jay Furfaro
APPROVAL OF AGENDA.
Mr. Rapozo moved to approve the agenda as circulated, seconded by
Mr. Chang, and unanimously carried.
MINUTES of the following meetings of the Council:
1. Minutes of the March 13, 2012 Conservation Workshop
2. Minutes of the April 11, 2012 Council Meeting
3. Minutes of the May 9, 2012 Public Hearing
4. Minutes of the May 9, 2012 Special Council Meeting
5. Minutes of the May 23, 2012 Public Hearing
Mr. Bynum moved to approve the Minutes as circulated, seconded by
Mr. Chang, and unanimously carried.
Chair Furfaro: We are now going to move to the consent calendar.
I do want to let you know that Mr. Hoff wants to give testimony, but then at the last
minute he could not make it, so I am going to allow Mr. Mickens to read that
testimony. Is there anyone here by raising their hands that would like to speak on
the consent calendar or any item on the agenda before we start the meeting? If not,
Mr. Mickens you have the floor on behalf of the testimony submitted by Mr. Hoff.
There being no objections, the rules were suspended.
GLENN MICKENS, RESIDENT: Thank you very much, Jay, for your
consideration. You have a copy of John's testimony, he really wanted to be here but
circumstance did not permit it, so he asked me if I would be kind enough to read
this.
"As I witness this mounting and ever growing landfill catastrophic event
coming to a head, I find it hard to believe that the Council and Mayor's Office are
capable of resolving this health hazard which is approaching us faster every day.
The problem is that there is no political will among these governing parties to solve
Kaua`i's growing solid waste, garbage, and health problems. Efforts to plan ahead
for the relocating and building of a new landfill have gone through four (4) mayors,
endless Councilmembers, and yet there is no site chosen or any permitting moving
forward. Much less, building a new landfill, there lies the problem. Today's meeting
COUNCIL MEETING 2 JUNE 13, 2012
is about expanding another existing landfill cell for another reprieve for a landfill.
Time is running out fast and here we are once again talking not about fixing the
core problem, but rather discussing bandaid solutions. The solution is to gather our
garbage and make it work for us. Absolutely, shredding is part of that process as
Danford Kaeo has stated, as is separation of garbage categories, and the recycling of
those particular waste materials into useful products, which means, jobs. To refresh
your memories, that is what was offered to Kaua`i in 2008 and snubbed. It may be
able to be offered again. Today I suggest that the Council agrees to a gentleman's
agreement in allowing Danford Kaeo, if Danford is willing, Steve Hall, and myself
to offer a solution to Kaua`i's garbage landfill dilemma to be presented to the
Council and Mayor, and to allow it to be voted on right here in this Chamber prior
to the State General Election. Upon receipt of this solution to the Council and
Mayor, the County of Kaua`i agrees to place this very same solution on the general
election ballot for the November 5 election to allow the body politic, we the people,
to also vote on this issue. Allow these elections to determine how we move forward
with the cooperation of both public and private sectors in resolving our landfill
versus recycling issues."
So anyway this is John's testimony, I think this is a very good testimony. I
think that, I do not think that there is anybody at this table that does not agree
that something has to be done, whether it is keep on pushing the MRF issue, but
that again sounds like it is going to be in the (inaudible), so we got to do something
immediately. So anyway, thank you again, Jay, for your cooperation in letting me
read this. Thank you very much.
Chair Furfaro: Thank you. Is there anyone else in the audience
that would like to speak on our Consent Calendar or any agenda item before we
start into our meeting? If not, I want to point out that it is my intent to take item
C 2012-179 first, I will be turning over this presentation to Councilmember
Nakamura. And then for those who are here to do follow-up, it is my intention to
accept the Committee Reports CR-PSE regarding the Engineer's Report on the
landfill by 12:00 p.m. On that note, Councilmember Nakamura, may I give you the
floor?
There being no objections, the meeting was called back to order, and proceeded on
its agenda items as follows:
CONSENT CALENDAR:
C 2012-174 Communication (05/22/2012) from the Council Chair,
transmitting for Council consideration and confirmation, Council appointee Stephen
W. Long — term ending 12/31/2014, to the Kaua`i Historic Preservation Review
Commission (Architect): Ms. Nakamura moved to receive the Consent Calendar,
seconded by Mr. Chang, and unanimously carried.
C 2012-175 Communication (05/31/2012) from Councilmember Rapozo,
transmitting for Council consideration a Charter Amendment Relating to
Restrictin g the th Mayor's Power Over Departments: Ms. Nakamura moved to receive
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C 2012-175 for the record, seconded by Mr. Chang, and unanimously carried.
COUNCIL MEETING 3 JUNE 13, 2012
C 2012-176 Communication (06/06/2012) from the Council Chair,
transmitting for Council consideration a Charter Amendment Relating to
Additional Duties of the County Auditor: Ms. Nakamura moved to receive
C 2012-176 for the record, seconded by Mr. Chang, and unanimously carried.
C 2012-177 Communication (05/31/2012) from Councilmember Rapozo,
transmitting for Council consideration a Charter Amendment Relating to the
Preparation of Monthly Financial Statements by the Director of Finance:
Ms. Nakamura moved to receive C 2012-177 for the record, seconded by Mr. Chang,
and unanimously carried.
C 2012-178 Communication (06/07/2012) from Council Chair, transmitting
for Council consideration, amendments to Chapter 3, Kaua`i County Code, 1987, as
amended, Relating to the Representation of Clients with Conflicting Interests by
the Office of the County Attorney: M . Nakamura y y s a amura moved to receive the C 2012-178
for the record, seconded by Mr. Chang, and unanimously carried.
Chair Furfaro: Thank ver ou much. We are back on track and
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you have the floor Councilmember.
C 2012-179 Communication (05/09/2012) from Councilmember Nakamura,
requesting the presence of Mr. Joel Huesb y, Owner, Huesby Farms, LLC, to provide
an update on the feasibility study for the Modular Multi-Species Processing
Establishment: Mr. Rapozo moved to receive C 2012-179 for the record, seconded by
Mr. Chang.
There being no objections, the rules were suspended.
Ms. Nakamura: So, let me backtrack and say that last year in our
Budget we approved the CEDS package, the Comprehensive Economic Development
Strategy package, and part of the funding went to the Kaua`i Economic
Development Board, and they oversaw several contracts. One (1) of the contracts at
that time, we called it a Modular Slaughter House. So you might be looking at this
and saying what is a Multi-Species Processing Facility. Joel will explain that it now
has become a much broader facility, and we...KEDB went through a process of
looking at possible consultants to do this feasibility study, and selected someone
that is very knowledgeable about this subject matter, not only as a farmer himself
but someone who goes and consults around the Nation and around the world with
these types of facilities. So I really want to thank Joel Huesby for being here, and
Sarah Bowen for assisting with this project, and I also want to recognize from
KEDB Mattie Yoshioka and Susan Tai, who really are overseeing this contract. So
as we did last time with the incubation program, we are now getting the briefing,
the results of that feasibility study, and we will just take it from there. Joel.
JOEL HUESBY, OWNER, HUESBY FARMS, LLC: Welcome, it is a
pleasure for me to present here. I am a fourth generation organic family farmer
from South Eastern Washington State. I have constructed and built my own USDA
meat processing establishments currently working with an organization that
formed a livestock producers cooperative in North East Washington that is now in
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the awarding of contracts following design-build of a multi-species processing
establishment up there.
So I would like to begin, before I begin the presentation, with my metaphor
rock. It is painted black and it is to represent coal in this case, and you get
diamonds and gems from coal, and the only way you get them is through time,
pressure, and temperature. There is no guarantee that you can get a gem from that,
but that is the only way that that process happens. Each of us has gems that we can
offer to this solution. Another aspect of this is that there is many different facets. If
you look at this rock, it has a different angle, a different way of looking at it, yet it is
the same rock. Each of us brings a different perspective to the problems here of local
meats, of food sustainability, of food insecurity on this island, yet it is the same
problem, so it also could be the solution to this whole thing. This particular rock has
been on my farm for one hundred and two (102) years, but it got to my farm in only
a few hours time from western Montana through the Missoula Floods and is what is
called an erratic. The idea is that mostly rocks you think of as being place based and
they do not move too much, but when the conditions are right, things can move very
quickly; this rock moved over six hundred (600) miles in only a few hours, so also
what I think what could happen here in this whole case study with mobile meat
processing. Lastly, I would like to talk about the idea that this rock also connects us
to the land, to our past, to history, and that is through the Polynesian culture,
through the paniolo, the traditional cowboys of this island and how that can be
brought to the present with what we are about to accomplish here. So with that I
would like to pass this rock around and each of us can feel it and be one (1) with the
metaphor rock. Not normal I know, but that is okay.
So I grabbed this picture and it is a typical sea scene but if you look closely
you might see a couple of faces in it; do you see those faces? Oftentimes I think that
the solutions that we need are right in front of our eyes but we just do not see them
unless we kind of look at it through a new perspective; that is what I am hoping to
offer here, to really empower you to see that everything you need is already right
here, you do not need anything basically from the mainland, except maybe me a
little bit.
I would like to begin with a recommendation first, and then we can go into
some of the details later in this. This recommendation is a three (3) phased
approach: Phase 1 — Processing and hot carcus cooler module; Phase 2 — Value
added module; and Phase 3 — Slaughter module. Basically it is along the lines of
holistic thinking where we begin by addressing the weakest link; the weakest link
according to the survey, the livestock producer survey, is carcus cooling and
processing. Both slaughterhouses on the island right now, each one (1) individually,
if they operated four (4) days a week at fifteen (15) head a day is three thousand
(3,000) head, which is the entire island population of cattle. So at the moment we do
not need slaughter capacity, what we need is processing and cooling.
So let us start there first, adding in this as we get more proficiency, as we go
down the road, as we build excess capacity where they can no longer handle it.
Value added is a whole other animal if you will in that so many things could be done
primarily with pork, and so particularly with Kaneshiro pork line, that kind of
thing adding value to hams, bacon, sausages, multiple ingredient items, ready to
eat, and so that would be the second phase, again as proficiencies are addressed.
And then I like this quote, and this actually came from Glenn Fukumoto I think in a
previous study, if that is his name please correct me, that I read which is — do what
COUNCIL MEETING 5 JUNE 13, 2012
all good businesse people do to be successful, assume responsibility, accept risk,
account for losses, invest profits, and plan for the future; I really like that.
Ms. Yukimura: Before you go on, can you just repeat what you said
about the weakest link (stet) in the statistics that you gave, I did not catch that.
Mr. Huesby: The statistics will come a little bit later, so that
was...my main recommendation is that we want to address this in phases, and I
have some statistics in a later slide.
Ms. Yukimura: Alright. Okay. Thank you.
Mr. Huesby: The main thing is in any sustainability venture like
this you have got the triple bottom line, and what is often neglected is the
economics part of the bottom line and if it does not pencil, it is not sustainable,
right? And if the ranchers cannot make more money then there is no incentive,
there is no desire to change their particular habits or what they are currently doing
in the industry; so they need to make money at this, and they can based on the
economic analysis that I performed or that we performed, and that we used what we
believe are conservative numbers. Right now I think is a good time to invest
because cattlemen are making money, there is record high prices for livestock on
the mainland that also translates to high prices for livestock here, and it is during
times when you have excess cash that you can then squirrel away or retain heifers
on the island without interrupting too much of your cash flow in your individual
ranch business. So what I am proposing is that a quarter, roughly a little bit less
than a quarter of the cattle on the island be retained on the island for future
slaughter in this new facility, and I would like to see that happening beginning this
next month. We do not have to retain five hundred (500) head next month, we just
have to begin with ten (10) head a week, forty (40) head next month. We are going
to start small, take baby steps and grow into it; this is the message for the
cattlemen's meeting I have later this evening. Then that sets phase 1 of having a
multi-species processor room and cooler by December 2013, making those animals
that are seven (7) months old now twenty-four (24) months old and finished at that
time. The safety valve of this or what happens if it drags on longer than this time,
we can go to Andrade's, we can go to Sanchez, so we still have contingency plans.
Organizational structure and governance in my opinion is one (1) of the
critical pieces and components to making this whole thing happen, because it really
is about first who then what? If we do not have the right people and the right
organizational structure, I do not care how good your idea is, you have got to have
the right people in place. What I am proposing, what we are proposing is a
formation of a new association, the Kaua`i Meat Producers Association, and so I am
going to call it KMPA. And so it has got a different agenda than the Kaua`i
Cattlemen's Association, because we want to be more inclusive of also the hog
producers, sheep producers, and poultry, so this is not a cattlemen's thing though
the cattlemen are going to use it the most, and that is why we want to form this
new organization. We do not want to rock the boat for those things that are already
working the way they are right now, so production stays as it is — rancher owned
and managed, that is what they wanted. Processing, you leave the existing
processing establishments alone, we need them, they need to be a part of the
equation, part of the solution. The new processing establishment we are proposing
is owned and operated by KMPA and we will get into details about how that will
work out financially later. Sales and distribution would be on a commission only
basis, and the way that I have tried to set-up this model is that throughout the
COUNCIL MEETING 6 JUNE 13, 2012
entire food value chain everything is performance based and on real time; it has got
to be incentivized that way, otherwise you end up creating cultures of dependence;
that is just not going to work. We need to run a tight ship that does not have leaks.
The feedback loop is created in such a system because if the chef at the local resort
is not happy, that can go right straight back to the rancher, the individual rancher,
not to some amorphous meat that was produced, but that rancher, that cow, and
you need to fix that problem; this is the feedback loop that is important if we are
going to aspire to quality and consistency.
Administration within this new organization—what we are proposing is what
I want to create in the next round of things is a business plan, is the articles of
incorporation and the bylaws for KMPA, that is coming u . There would be a Board
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of Directors, and that will set the direction for KMPA. Under that is going to be an
Executive Committee that really runs the day-to-day, oversees the day-to-day
operations of the business of KMPA. It would profit with non-profits like perhaps
the KEDB to receive funds, public funds, or it could be through the Garden Island
Resource Conservation District (RCD), perhaps, or some other non-profit 501-C3
where funds can be administered and then also accounted for. This whole thing
needs to be ran as a business, you are going to have an accountant hired part-time,
you are going to have a budget, you are going to look at that budget variance,
year-to-date, and for individual line items you are going to see what is out of
balance and you are going to correct it. You are going to do that prior to having
problems blow out on you. I am recommending that in addition to the general
operations accounts, that there are several other accounts set up. Most businesses,
including my own starting out did not set-up these other accounts; I think they are
critical to the overall success of an organization. The next one (1) would be charity
after general operations. I propose that ten percent (10%) of all net income from the
establishment goes to charity. That does not necessarily be in cash to youth, to
homeless shelters and the like, but it also could be an in-kind product, so this
product that may be dated, that is off quality, the seal in the package is broken,
these kinds of things. So an in-kind donation could be made. The fact is is that
when you give, you receive. And so, I want to build into the very fabric, the
structure, the corporate structure of this organization; the fact that we are going to
help other people. The next one (1) that I want to put in here is a rainy day fund
because the fact of the matter is, crap is going to happen, something will go wrong
and murphy will show up. And so, we are just, we need to set aside as soon as
possible four (4) to six (6) months of operational funds for the day that something
bad happens, and who knows what it is, but trust me, it will come. And then the
last one (1) we want to set-up is capital improvements and maintenance. In addition
to just having a depreciation line item in the budget, we want to squirrel away
money for perhaps another establishment. Maybe it is on the Westside, maybe we
will want to continue increasing our valued added, maybe we want to incorporate a
commercial kitchen with this, perhaps we want to add a classroom to this so that we
can train the next eneration of butchers, maybe we want to add retail space to this,
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maybe we want to make this into a meeting hall in the evenings for the association
or something. So all of these things can come down the road and they co me through
retained earnings after we have been showing positive cashflow and making a
profit. And so we need to squirrel money away for that, that is why I have these
four (4) accounts.
Processing overview, well currently there are two (2) slaughterhouses on the
island, and in our opinion are key to staying in existence. So any new
slaughterhouse that we want to put out, the intiative for this thing cannot, in my
opinion, do undue harm to the existing establishments. With that said, their age of
COUNCIL MEETING 7 JUNE 13, 2012
facilities and their management is also getting old or in transition, but a little
competition is also key to a healthy industry. We cannot monopolize the system by
having only one (1) new fancy establishment.
As I said earlier, the carcus cooling and processing were the weakest links
and we will add value added later. The last thing is that we need to create a forage
finish program for quality and consistency. This comes back from the marketing
survey work that we did, where particularly chefs, restaraunts, and resorts love the
idea of local meats. Hands down there is no question the demand is out there. The
problem is making sure that we get enough quality in to that and they get it time
after time. You can sell anyone a steak once, success to is did you sell it to them
twice because they were happy with the purchase the first time? So there is a lot of
other things and I will just go through a boiler list of those near the end of this
presentation about what we want to address, that perhaps through Sarah and Matt
Stevenson, along with myself in the next year or two (2), to really dial in the
production protocols for getting the quality up there where these resorts go, yes I
want it again. Yes?
Ms. Nakamura: Can I just add that in this Budget that the Council
approved, that we included the forage finishing study, a year long study to take a
look at how do we produce consistent quality beef. That would be a separate piece.
Mr. Huesby: It is integrally important to the whole system.
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Processing economic feasibility. So I did an analysis that I do not have in this
slideshow presentation, I did not want to dive into the numbers on that. It is
available for any of those who wish to have that later. It will be part of the final
analysis that will come out next week or week and a half.
Anyone can make projections in these worksheets with hockey stick rose
colored glasses projections and make them believable. I am not interested in
making something believable; it needs to be achievable. That is really what I try to
do. And so, I was very conservative in the numbers that I thought. I would make
expenses high for labor for instance, for overhead infrastructure, and be
conservative in what I thought people could get from income coming in from retail
meat sales. On the value added part there is so many different things you can do in
terms of sausages and all of these other things with particularly pork that is kind of
like shooting a dart at the wall. It is going to have to be analyzed as we get down
the road on a case by case basis for what kind of product lines we are going to
develop through our value added module. Clearly there is a need for it and clearly it
can make money.
Each of the economic assumption, so we are going to start with processing,
processing plus value added, processing value added, and slaughter. We looked at
each of those in these four (4) areas — revenue and direct cost, operating cost, capital
cost of financing, and total operating projections. When we look at all of those
things what we find is that the least profitable right now is the last step that we
want to add to this system, which is the step we do not need at this time — that is
slaughter. The reason for that is the current slaughter kill fees, when you factor in
the labor versus the need to payback the infrastructure investment, does not pencil
as well. You have to remember particularly for slaughter that it is high volume-low
margin type business. It will be a necessary piece of the pie going forward, but in
our opinion, it is not necessary at this time, next couple of years.
COUNCIL MEETING 8 JUNE 13, 2012
So when I talk about modular there is different ways that you can think
about modular but my definition of modular is not so much like a container or a
trailer house, but basically it is still a stick frame construction over a concrete
foundation. But it is designed in such a way that you can add to it. I have simple
floor plans here as examples that are not part of this presentation to show you how
we can have high adaptability and expandability by designing in these components,
rather than by making things quite complex and really rigid initially. We want to
have some flexibility in this thing. Most respondents were willing to haul their
livestock twenty (20) to thirty (30) miles which suggests that hey a place that is
centrally located works for both sides of the island, that is kind of like around here,
Kalepa for instance. We have analyzed several other sites including mobile by the
way and nobody wanted to do mobile. I had a mobile trailer at home and it just
went from my farm to a meat shop in town and it really does not work because what
do you on an incomplete kill day? Is everyone going to twiddle their thumbs or drive
into town half an hour to go finish processing? So there is some labor inefficiencies
that goes along with mobile that we do not recommend. We like the site, the ADC
land at Kalepa which is also near the proposed new landfill area. I understand that
there may be an environmental assessment, some issues with surface water, there
is a reservoir and a couple of rivers nearby that we will have to address to make
sure we do not have any runoff issues if that gets approved. We can get a longterm
lease in my opinion on something like that so there is some continuity, some
stability about this whole thing that would not happen if it was on private ground
for instance. You do not know what happens if you get a divorce or somebody dies,
kids get it and they do not want to do it, this kind of thing. In my opinion, it needs
to be on State land, and that is the best site.
So when we go into getting our grant of inspection for USDA processing
establishment through a FSIS, you are going to need a several things. This kind of
gets into some details that is a little bit a cart before the horse but gives you an idea
of the things that will need to go through and really start that process in the next
several months if we are to have the regulatory compliance also approved at the
same time that the physical plant is finished. That would be the HASA plans, the
SOP's, SSOP's, other supporting documentations that goes along with monitoring
instrument calibrations and the like. I have written all this stuff before. Eastern
Washington redneck turned dietician and whatever, it is a long way from home at
the moment, especially in language like this, but I have done it. And then we need
to comply with the Federal regulations and have it properly labeled. So these are
things, the hoops that I have jumped before that we will need to go through again
here shortly.
For financing, now this is an interesting area because the way I had worked
out my economic analysis was that the money that came from the State and
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possibly also the County in some combination, were low interest fifteen (15) year
term loans, say like lik three percent (3%) or something. The one (1) that I am doing,
the $1.2 million job in Eastern Washington was a zero (0) interest community
economic revitilization board loan, a zero interest loan on I think it was twenty 0
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years. They are paying it back. With that said I have had other conversations where
perhaps this is all almost a slam dunk for a grant because it has been wanted for so
long, it is not that much money at $500,000.00 or $750,000.00. There are some pros
and cons to doin g things whether it is by grant or loan. I have concerns in that
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we do not want to hurt the other two (2) establishments by making this cadillac
facility, but what about them? If you were to take the coin and flip it over for
instance and you have a large corporation who has lots of money and can wield its
own power because of its access to capital, it is no different when you have access to
COUNCIL MEETING 9 JUNE 13, 2012
State capital. So we need to make a balance here to make sure that the other two
(2) establishments are not hurt in this process, but everything is enhanced together.
So we are going to walk a fine line when do this and how we determine how money
is allocated for this stuff, in my opinion. Again we talked about having all that come
through a 501-C3 to the KMPA Board. The other thing that is interesting to me is
that...look, on my farm, if it is my own money I have a completely different attitude
to how that money is spent, allocated and to profits I get from it than if it is OPM —
other people's money. So it is critical that we have the attitude that whether it is
grant or zero or low interest loan, that we have that ownership mentality. That
whether it is paid back in profits to the shareholders, the owners — in this case back
to the community, to the State or the County, that there is an ownership mentality
that goes with it.
Marketing overview. The vast majority, in fact it is like ninety-four percent
(94%) of the food on this island is imported, is totally vulnerable to natural disasters
and global events. Locally grown is huge even on this island. Lots of farmers
markets, chefs and grocers want local. If one hundred percent (100%) of the cattle
on this island stayed on this island, you would only feed twenty-six percent (26%) of
the population; that does not count us tourist. So you are going to be in that
medium porter anyways, big time. Ninety percent (90%) of producers were
interested in creating a marketing program. This is really critical because most
people do not have the time to put in to creating a new brand, it takes a lot to do
that. So this is why we think that the Kaua`i Grown brand would be a really good
thing to expand from fruits and vegetables that it is right now. The caveat or the
addition that I would add to that is that there is also a sticker or something that
gives individual ranch identities. So I like the Kaua`i Grown umbrella with
whatever ranch it is. That way it gives a sense of pride for that individual rancher,
it also gives that personal touch that the person, when you go to eat a fancy meal at
one (1) of these restaraunts and stuff, this all came from blah, blah, blah ranch. It
was not just amorphous stuff, certified angus from the mainland, generic blah, blah,
blah. You put a name, you make it personal, this is all marketing, we can go into
marketing later. Anyway, chefs and grocers as I have said are very supportive. We
need to have a unified system for quality. The fact is is that there is no USDA
grading on the island and there will not be. My meats were never graded and that is
a USDA grader actually cost you money. To have meat inspected is free of charge
from the government, but not for the grader. So what we are going to do is self
police this. We are going to make sure that standards for the Kaua`i Grown program
meets certain minimum protocols, select plus, certain carcus weights, certain cutout
yields, and the like. If it does not meet that then it cannot be a part of that program
or if it is, it goes into the ground into the school lunch program or something
else...that is the wrong thing to say.
Chair Furfaro: Absolutely.
Mr. Huesby: School lunch programs really scrape the bottom of
the barrell and you do not even want to eat that stuff. But anyway that is another
story. Institutional meats are bad. I know too much, my inspector talks too much.
Chair Furfaro: We do not need to know anymore.
Mr. Huesby: Sales, in my way of thinking, the initial sales effort
goes towards the restaurants and resorts more so than grocers because the margins
are higher because you can deal with one (1) or two (2) restaraunts so the volumes
COUNCIL MEETING 10 JUNE 13, 2012
you need are not as critical as when you go to the grocers which sell a lot more,
right?And so that is where our initial sales and distribution emphasis should go.
So, money enters the value chain through a paying, satisfied, and repeat
customer, and the less links we can put in this chain the more money goes back to
the land, to the producers who have been belly aching because they do not get
enough. I would agree with them because I am producer.
Livestock production consideration. So we sent out a survey to about
twenty-eight (28) producers electronically through survey monkey, we also handed
out in-person surveys, and announcements were made through Matt Stevenson and
his extension mail list, as well as Karen Guest and the Kaua`i Cattlemen
Association. We got back about fourteen (14) surveys online and a few others on
paper copy. According to a table that I created, between $88.00 and $485.00, an
additional revenue that is over and above selling the cattle off the mainland,
including the cost of keeping them here and finishing could be made. And so, I was
very concerned that I am just throwing a dart at the wall here and these numbers
could not be verified or validated. I asked the producers, and this was a couple of
months ago when I was here, I said is there anything wrong with my assumptions?
I said poke a hole in it right now, speak or forever hold your peace because I want to
know. They said — no — you are spot on, you are correct. I said alright. So if you
average that out it is a couple of hundred bucks. More could be made for the
cattlemen, and that is also having the butcher making money with benefits and the
whole nine (9) yards. What we are taking when we capture value here is getting rid
of all that transportation clear from here to my State. A lot of your Hawaiian cattle
right here are grazed in my valley in Washington State, my valley. That is a long
way for that meat to come back here. So when we take all of that distance and
transportation out of it that is the margin that we can keep back here on this island
and create jobs. This is really big. Eighty-three percent (83%) expressed a
willingness to cooperate with each other, create the local Kaua`i Grown brand, that
is really cool. Most of the ranchers already use processing facilities around here,
albeit on a small basis, oftentimes custom exempt just for their workers and
themselves. Most of them agree the processing infrastructure was inadequate and
that they would like some place central. The cost and availability of processing
scored the highest among the concerns and I find that kind of odd because there are
already two (2) and they are only operating one (1) kill day a week each. So I do not,
why not add another day and stuff, I do not get that. Maybe there is some cultural
things going on here that I do not understand. Nonetheless, there are some
problems and producers have some concerns. What we want to do as we go forward
creating this program is to address those concerns. So this livestock production
considerations, and these are...the selection criteria that ranchers are going to need
to understand, this would also spill over into sheep and pork and the whole nine (9)
yards as for getting a quality product. I am just going to, you can read down that
list right now, and really this is also for what Sarah, Matt, and I will be doing in the
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co min g y ear when we talk about creating the Kauai Grown protocols. There are
r going to do to make sure that we have a good quality
things that we are g g g q y
consistent product that is economically produced.
So what are the next steps, with the County's approval and the confidence of
interested stakeholders, we want to form KMPA — Kaua`i Meat Producers
Association. We need to write the business plan for it, I would like to have that done
by this September, ideally on my next trip back tentatively. We want to create the
standards for the Kaua`i Grown program. We want to secure the site, again this
would be out in Kalepa if possible. We want to develop and finalize the design, build
COUNCIL MEETING 11 JUNE 13, 2012
the site, floor plans, and construction timeline. I have already got initial documents
along those lines right now. We want to obtain the funding for this and financing.
That process through the State would mean that we would have to put to them a
proposal that they could take before appropriations in next January. So between
now and then, we need to have our ducks in a row, show them that we have
organized ourselves, that we have created all these other things so that we have a
high likelihood of being funded through the State. I do not know where the County
would fit into this whole process, so this is another level of conversation we will get
in to. We want to execute on the plan and then monitor feedback and make
corrections as needed. The one (1) last thing that is not part of these next steps that
I want to talk about tonight that is really critical is again back to the first two (2),
then what? We will need a leadership team. We will need people who take
ownership. We will need people who have integrity. We will need people who have a
solid business mind who understand the numbers and the margins, and can get
things done. Otherwise, this is all academic, and I am not interested in academics; I
am interested in results. Before we go to questions, I would like to conclude with
this poem and it is entitled —You Will Do It.
"Somebody said it could not be done, but he with a chuckle replied that
maybe it could not, but he would be one who would not say so till he tried. So he
buckled right in with a trace of a grin on his face, if he worried he hid it. He started
to sing as he tackled the thing that could not be done, and he did it. Somebody
scoffed aw you will never do that, at least no one had ever done it. But he took off
his coat and he took off his hat and the first thing you know he had begun it. With
the lift of his chin and a bit of grin without any doubting or quibit, he started to sing
as he tackled the thing that could not be done and he did it.
There are many to prophesize failure, there are many to point one by one, the
dangers that wait to asail you, the reasons this thing cannot be done. So just buckle
in with a bit of a grin, just take off your coat and go to it. Just start to sing as you
tackle the thing that cannot be done, and you will do it."
Thank you.
Ms. Nakamura: Thank you, Joel. Questions?
Chair Furfaro: I have.
Ms. Nakamura: Council Chair.
Chair Furfaro: I want to make sure I understand the process
of...first of all I very much enjoyed the site inspection in Honolulu with you and
Sarah, thank you very much for putting that forward.
Mr. Huesby: I learned a lot there too. Thank you.
Chair Furfaro: I want to make sure what we are talking about,
establishing a standard for Kaua`i meats that will not meet USDA standards, is
that what I am hearing?
Mr. Huesby: No. It is going to be, it is USDA standards in terms
of the regulatory process.
COUNCIL MEETING 12 JUNE 13, 2012
Chair Furfaro: Let me restate that — USDA grading. I heard in
your presentation that the grading, the stamp approval for marbling, fat content,
fat color, is a pretty expensive process, but you are saying right now Kaua`i will
create its own standard for grading?
Mr. Huesby: Yes. We will self-police on that front because there
is no inspector. You have to go through a training process. There is no grading
inspector that is going to come over here; you could not afford it if there was. Those
inspectors grade carcuses every fifteen (15) seconds in my County; you cannot afford
to have one (1) here. We do not need to grade it that way, we will just need to make
sure that we are putting out good quality product and we will create our own
standards.
Chair Furfaro: Again, I just raised that question because
managing food processing today is, like we said, we will have one (1) kill day for
cows, we may have another kill day for lamb, we might have another kill day for
pork. But now who assures there is no cross contamination between the products?
How does that happen?
Mr. Huesby: That would still be part of the regular inspected
process with an inspector on site on kill days.
Chair Furfaro: A USDA inspector?
Mr. Huesby: A USDA inspector must be there every kill day,
and in my establishment we would do all three (3) of those livestock everyday all
the time. You would do ruminants first, followed by swine last, because that would
not contanimate swine, but you do not do swine first, and then you would make sure
that you had sanitary clean up of all food contact surfaces — knives, tables, stuff like
that.
Chair Furfaro: In our hotels and restaraunts here, many of our
brands, they do national chain specs to negotiate the best quality beef or pork for
the best possible price. How would we break in, in your marketing plan, how would
we break in to compete against Hyatt's national chain specs? Sheraton's national
chain specs? How would we do it?
Mr. Huesby: The answer to that would be twofold: (1) get their
specs and then learn what they are, and then go back and develop a program that
or especially exceeds them; (2) some of those places are so onerous in trying
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to meet those specs that guess what, you know what, they are not our customer. If
the local resort or the local restaurant wants a product, they will find a way to
change the policies, the corporate policies and get the product, provided that it has
got quality.
Chair Furfaro: Well you said it—if they choose. That is a big if.
Mr. Huesby: Not everyone will. But remember, and never mind
the restaraunts and us touristy type people, if every animal stayed on this island
you would only feed a quarter of it.
Chair Furfaro: I saw that.
COUNCIL MEETING 13 JUNE 13, 2012
Mr. Huesby: So not everyone has to be our customer; we would
like that, but it is not going to happen.
Chair Furfaro: But if we were to expand the meat and the beef
market here, obviously too with the kind of cattle grazing we have now, it would
require a much larger allocation of our ag land to specific meat products.
Mr. Huesby: It would and actually it would require roughly
twice as much if you were retain. With that said we ask producers — do you have
additional land available for retaining animals. They said — yes, all of them said —
yes. Did they have enough? I do not know. I also put in there a provision to be
mindful of the savings account of forage for drought, because you cannot have this
thing going along and turn off the cow spickets; it is not a good deal. The other thing
is that we can increase productivity again by what we want to talk about in the
coming year with management intensive grazing, rotational grazing, getting more
mileage from the current resources we already have. So there is a lot of different
ways we can go about increasing productivity on these lands because you only have
a limited amount.
Chair Furfaro: Well I am just asking you to take a good look at our
Important Ag Land Study because it is being developed now as we go forward and
you are going to be talking about this over the next year. So I would connect with
planning on our IAL Study. Obviously the other question is for the packaging, just
on island packaging, this would include some cryovac packaging...
Mr. Huesby: It would only be, yes, vacuum pouch.
Chair Furfaro: Only cryovac?
Mr. Huesby: Only, yes. For a variety of reasons: no leakage, good
shelf life, it is the way they are used to handling it; it is a better system.
Chair Furfaro: Thank you very much for a very, very, complete
presentation. I just needed to be very direct about some of those questions being
considered in .our strategic thinking.
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Mr. Huesby: Quite alright.
Chair Furfaro: Thank you.
Ms. Nakamura: Councilmember Yukimura.
Ms. Yukimura: It is such a joy to receive a knowledgeable and
practical presentation, so thank you very much. I feel like you have given us a really
good example of good planning and problem solving, and a really good example of a
feasibility study, so thank you very much. I guess my question is about, I think it is
your slide 6 about Administration and the organization that you are looking to
create. I know that when we first developed KIUC, our Kaua`i Island Utility
Corporation or Cooperative, excuse me, we had to do a lot of capacity building
because it was a new format, a new context, a new way of doing business on Kaua`i
in terms of electrical production and distribution. I am just wondering about what
thought you have given to capacity building. You also mentioned the need for a
really good leadership team.
COUNCIL MEETING 14 JUNE 13, 2012
Mr. Huesby: Well that is like my numero uno agenda tonight
with the Cattlemens and the other livestock producers that have been invited. I
think the vast majority of producers do not want a cooperative. I could go either
way...
Ms. Yukimura: I am not suggesting a cooperative.
Mr. Huesby: Yes. I could go either way on that, but, and when
we talk about organizational structure, I think that we need to balance corporatism
with autonomy. In other words, things we cannot do by ourselves but also things we
are rewarded for because we did it ourselves. So we are going to walk a very fine
line about how we work together but we are still rewarded for doing a good job of
finishing those cattle. It is not everybody's cattle, it is my cattle, and that is the
money that I got back through the system, that is the kind of organizational
structure that I want to set up in this thing. That is the capacity building I am
going to try to relay to the people tonight.
Ms. Yukimura: I see.
Mr. Huesby: I have got, there is maybe half a dozen people and
the fact is in the world it is changed and influenced by those who bother to show up.
Ms. Yukimura: That is true. I was not at all suggesting a
cooperative form, I was just thinking, when you create your organization how do
you build the capacity of that organization? I do agree with you that it is a fine line
to develop this cooperative, and I am using small "c" approach, but retain the issue
of individual effort, and reward, and accountability. I am not presuming any
particular structure, and I was just asking about capacity building in general.
Mr. Huesby: I have had this conversation with my team several
times which is my biggest concern is that this is a great idea and it is doable. It is a
done deal to me. What is not done, to me, is again identifying the leadership team. I
have got ideas of three (3) or four (4) people that I know on this island that I think
have the leadership intelligence, the business experience, the integrity to actually
do it. I am hoping that they will step up to the plate, I am going to cross my fingers
tonight as we go forward in this whole thing. It is first — who, then — what? Now I
need to identify the who, because we got the what.
Ms. Yukimura: Very interesting.
SARAH BOWEN: JoAnn, I will add to that. For the record, Sarah
Bowen. As the association forms and we determine who the leadership team is, I
think at that point it will become clear on what types of gaps there are. Then it will
be, creating board development and training opportunities and building that into
the structure of how the operation is run, and to have continued development is
going to be important.
Mr. Huesby: I would like to add to that in that my vision for this
board and even for the executive committee under the board of KMPA is that, they
do not all have to be livestock producers. I would much rather have a keen mind
from this Council here for instance, or from the business community. We can teach
you the margins of meat processing and stuff like that, but what I am really
interested in is someone who can look at a spreadsheet and manage people; that is
the kind of people we are looking for. Whatever industry they come from.
COUNCIL MEETING 15 JUNE 13, 2012
Ms. Yukimura: Thank you. My last question is, on slide 11 you talk
about a modular establishment financed by public funds, grants, loans, or a
combination. Am I misunderstanding modular? I am misunderstanding modular. I
was thinking mobile but that is very different.
Mr. Huesby: This is all place based, it is simply in floor plans
that is kind of like leggos, you can just stack these things.
Ms. Yukimura: Expandable over time.
Mr. Huesby: Yes. Or, mirror image the whole thing, this kind of
idea. And as we were talking to Ron Kouchi last night about things is that I did not
know the political process for allocation of grants or loans. But he said that if you
did get it you might have a three (3) year window to implement it. So let us just say
that it was $750,000.00 and that is approved next Spring, February or March. We
could start with the first module, processing and cooler, hot carcus cooler, and then
add the value added the following year, and then add slaughter the third year. So it
is one (1) allocation process of getting proficient, demonstrating positive cashflow,
those kind of things.
Ms. Yukimura: Alright. Thank you very much.
Ms. Nakamura: Councilmember Chang.
Mr. Chang: Thank you. Joel, thanks for being here. I also
enjoyed the excursion that we took in Honolulu, so thank you, and Sarah. I want to
just say first of all, I enjoyed your enthusiasm. I really enjoyed your presentation.
You seem like a fun guy to hang out with.
I have a couple of questions, and thank you for answering Council Vice Chair
Yukimura's question regarding the leadership ownership team and the person,
because I was thinking that it did not really necessarily mean it had to be a hog
farmer, or a cattle rancher. It was a business mind out there. I am very interested
in a couple of things, number one (1) I am not sure how many of us can make it,
where is this meeting tonight?
Mr. Huesby: It is on Rice Street, 4265, it is just one (1) block
down and across the street from KEDB.
Ms. Bowen: It is going to be the home of the new Kauai
Brewery.
Mr. Chang: And what time does that start?
Mr. Huesby: 6:00 p.m.
Mr. Chang: So do you expect to have minutes or report back?
Can we get a, because I do not think it will be the same presentation, but do we get
a...
Mr. Huesby: It is, it will be influenced more of the cattlemen's
perspective, or the producer's perspective, than a larger picture of one (1) here for
finance and stuff. Sarah is going to take notes at that meeting tonight.
COUNCIL MEETING 16 JUNE 13, 2012
Ms. Bowen: I will be providing a summary.
Mr. Huesby: But there is no official board, it is not a cattlemen's
meeting, it is a community meeting essentially.
Mr. Chang: Because, for those of us that may not be able to
make it, it will be very important that we get those, that we get the feedback and
the buy in. Two (2) weeks ago we had this feasibility study for our commercial
kitchen, for the business incubators, and Chuck Wolfe explained that it is a long
process. So many people get enthused right off of the get go, but you have to be able
to ride this wave sometimes for years before we find results. We know that we are
going to get the results, but it is just a matter of people hanging in there and I want
to just make sure that we can get a report back from either some sort of
commitment, verbal commitment because how does this person get paid? Those are
very important things to report back, I think, because that meeting is probably
going to be totally different from this meeting because now you are talking to the
people that stand to make or break for the ideas that we have.
Mr. Huesby: What I am going to do tonight is I am going to give
the "ask". I am going to ask for a commitment, I am going to ask for you to step
across the sandline, I am going to ask for you to put your name down and to raise
your hand. I am going to ask for a commitment. I am going to put them on the spot.
They have been dancing around the fire on this thing for several years, many years.
So, it is time to "fish or cut bait," how many metaphors can I use? I am going to ask
for that because again, I do not want it to be too academic. It needs to be very
practical, feet on the ground, lean into the taller stuff. We need those people and
that is what I hope to get tonight.
Mr. Chang: I appreciate you explaining to them that there is a
criteria. There is a very, very, strict criteria because it is all about, as you
mentioned, you can sell somebody the first steak but are they going to come back for
the second, and then the word of mouth. I do believe that if twenty-six percent
(26%), I mean we can only feed twenty-six (26%), there are specialty restaraunts
outside of a resort per se that people are going to actually come to eat the Andrade
Beef, the Sanchez Beef, the Shimogawa Beef, etcetera. I think that is very
important that they realize right off the get go that you will be supportive, but there
is a criteria that can really make or break that specialized restaurant.
Mr. Huesby: The reality is "many the flock, narrow the gate." So
we are going to have a gate, I am going to be a gate keeper, and we will make sure
that what goes through for quality and consistency aspires to the standards and
protocols of the Kaua`i Grown Brand. Everybody will be in love with the idea, but
not everyone will make the grade. It is going to have to be that way, we will have to
be gentle but firm.
Mr. Chang: My last question, just for curiosity, on page 4 you
mentioned and you emphasized — now is the right time to invest while industry
it
profits are high. What makes it now that the industry profits are high?
Mr. Huesby: What is driving that is is that nationally, and
Kaua`i cattle prices are tied to the National prices, are record highs at this time.
That is because there is record exports going on in the United States, and it is the
lowest cattle inventory since the 1940's in eighty (80) years. It is a perfect storm
COUNCIL MEETING 17 JUNE 13, 2012
from that standpoint. Two (2) years, three (3) years ago, the price of cattle of leaner
calves off the island on the container ships was sixty-five (65) cents, today it is
about a dollar; that is huge, that is a big jump in the last three (3) years. What I am
saying is that if you were able to make a living or break even at a living at sixty-five
(65) cents and you are getting a buck now, now you can afford to step out, take the
risk, retain some heifers or some steers for this program. Before, you were just
getting by paying your bills, now you have got a little bit of cushion, let us play the
game. That is the opportunity.
Mr. Chang: I understand. Thank you.
Ms. Nakamura: Thank you. Councilmember Bynum.
Mr. Bynum: Thanks for the presentation. I want to start by
saying my questions are going to be really naïve because I do not fully understand
all of this, so thank you for your patience. Exactly the processing and hot carcus
cooler module that is Phase 1, what specifically does that module do?
Mr. Huesby: What it does is it receives slaughtered carcuses, in
this case most likely from Sanchez facility, and they are then chilled there. Sanchez
does not have any chilling capacity whatsoever. They are chilled there, then those
carcuses are broken down into primal, sub-primals, and case ready meat products.
Those products are then stored in the finished product cooler, we can have a small
administrative office off to the side of it. That is basically about it, and then
products ship from there.
Mr. Bynum: I understand...I am a consumer. I know that I can
buy local beef at certain stores on Kaua`i. I know that it tastes different, and it is an
acquired taste, it is a taste I have acquired and I prefer certain things. But if this
was fully realized would this be the same type of beef that you get at the Safeway
Market?
Mr. Huesby: You know, I hope not, in my opinion. The fact is on
the mainland, of many producers there are fewer stockers that is the four (4)
weights to eight (8) weights; the four hundred (400) to eight hundred (800) pounds,
and fewer yet finishers is the feed lots is eight fifty (850) to twelve fifty (1,250), so in
four hundred (400) pound increments. The reason for that in part is that when you
get to the finishing phase, having that plain of game, the nutrition of energy to lay
on the marbling and the fat, and then to have that in a consistent flavor profile.
Because the flavor of meat is not in the protein, protein has no flavor, it is all in the
fat. I, as a mainlander, I am not used to a gamey and grassy flavor. We raise grass
fed beef at home all the time. I can tell you that it may be slightly different but it is
a very good flavor profile for the kind of forage that I finish on at home. It is the
same thing as our milk cow on spring fresh grass. It has got this grassy flavor, and
we do not really like it. When June grass comes on that milk tastes great. Same in
the fat. What I propose is that the finishing phase on this island may not be by all
the producers, I would say not. Maybe by only two (2), or three (3), or one (1)
producer who buys the cattle as stocker age, or at finisher age, four (4) weights or
eight (8) weights. And then finishes them on a consistent, well-managed, high
energy ration, that gives the flavor profile and the marbling that we are going to
require and that the chefs want. We do not want any of this gamey stuff. You get
these guys used to midwest corn from San Francisco. Well, they come over here,
they are going to want to taste something that they are used to. We are just going to
have to figure that out. What would be those forages if we did that, well they would
COUNCIL MEETING 18 JUNE 13, 2012
be like sugar cane, sorgum, and corn before it goes into the grain phase. So all those
sugars are in the stocks and in the leaves, and so we are going to manage that
process that way and schedule our livestock, consumption, and dietary needs with
the forage availability right? Most producers will not do that, but this is why we are
going to have only one (1) or two (2) finishers.
Mr. Bynum: So the beef I buy at Wailua Country Store or
Kojima's, that is finished here on Kaua`i right?And it is...
Mr. Huesby: I am assuming.
Ms. Bowen: Grass finished, yes.
Mr. Bynum: And then, I do not think that everybody knows that
the majority of the cows that we see out there are not finished here, they are
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shipped to the mainland, correct?
Mr. Huesby: Ninety-four percent (94%) are shipped to the
mainland.
Mr. Bynum: So if these proposals were fully realized, would we
be keeping and finishing all of the beef here on Kaua`i?
Mr. Huesby: That would be our ultimate goal - get rid of that
shipping facility, and keep them here.
Mr. Bynum: The last explanation you gave me, I tracked most of
it, but basically with this proposal it would have similar taste through the...so we
would...
Mr. Huesby: Yes. It does not have to be identical. I like to
have...you want to have a flavor of a sense of place, this is a good thing, and
seasonality. There is nothing wrong with those things. But you do not want that off
flavor, that is taste slightly different — cool.
Mr. Bynum: Right.
Mr. Huesby: Right. So this is the balance.
Ms. Bowen: And Tim, I will add into that too and that those are
the kinds of things that we are going to be looking at over the next year in the beef
finishing program.
Mr. Bynum: For KMPA, you are talking about grants, or State
aid, or some kind of public funding. How much money are we talking about for
Phase 1?
Mr. Huesby: For Phase 1, well if it is only Phase 1, a quarter of a
million bucks about. Now I try to pad that, I am basing this on Washington
construction prices and stuff because I am just talking about minimal stuff here.
Although I do not have a really good handle on Hawai`i prices, but I bumped my
margins to try to figure that out because things are shipped in.
Mr. Bynum: So KMPA would be a for-profit corporation?
COUNCIL MEETING 19 JUNE 13, 2012
Mr. Huesby: It would be a non-profit.
Mr. Bynum: It would be? That was not clear to me.
Mr. Huesby: It is only a fee for service and all of the revenues
generated from the sale of meat goes through KMPA, is administered by KMPA,
who pulls out a little bit for the overheads of administering it.
Mr. Bynum: So it is a non-profit?
Mr. Huesby: It goes to the producer. It is a non-profit.
Mr. Bynum: But initially you talked about partnering because it
does not exist yet?
Mr. Huesby: Right. Well, in order to get the State funds you
have to be a 501-C3.
Mr. Bynum: Right. So you are talking about starters?
Mr. Huesby: This might be an association at least interimly.
Ms. Bowen: Yes.
Mr. Bynum: I just wanted to be clear about that.
Ms. Bowen: Building up to meet the capacity of a 501-C3.
Mr. Bynum: And you mentioned no interest loans. So it could
come as grants or it could come as here is the start-up costs, three (3) years no
interest, start making principle payments on year five (5). That kind of idea?
Mr. Huesby: That could help a lot too. Yes. Just on the start-up
just to make sure that the things cashflow. So eventually as you are getting
proficient at it, you might postpone those payments or something like that.
Mr. Bynum: So eventually the money is paid back at zero (0)
interest?
Mr. Huesby: That is my goal. Other producers or people if they
heard me talking this way at...it would not be a good thing. Everybody likes to get
money for free and not pay it back. But I would argue that going back to where is
my rock, about time, heat, and pressure, the way you make diamonds and gems is
by...you ran a good business and you paid your money back. If it is given to you as a
gift, again as I talk about this culture of dependence, you get soft and then you end
up with a lump of coal; I am not interested in that. So in my world we want to pay
this money back, that money is used to go back into the community and build
something new like commercial kitchen incubators, or empower others, or give to
people in need; it needs to be run as a business, in my mind.
Mr. Bynum: I think my last question is, it is a key one (1) for
me, what I am hearing from the presentation is okay we have done this study, it is
feasible, we can do this, and it is time for players to step up and make a
COUNCIL MEETING 20 JUNE 13, 2012
commitment, or let us fold the table and talk about this ten (10) years down the
road or something.
Mr. Huesby: Yes. Yes.
Mr. Bynum: Because, as Councilmember Nakamura mentioned,
we have already funded kind of the next step. And so if players are not willing to
step up and put money in the game, not money, or just energy, time, and effort...
Mr. Huesby: It is game over.
Mr. Bynum: That is...I enjoyed this presentation a lot, and I
enjoyed your attitude, and can we get a copy of that poem?
Mr. Huesby: Yes.
Mr. Bynum: Thank you.
Ms. Nakamura: Councilmember Kuali`i.
Mr. Kuali`i: Thank you, Councilmember Nakamura. Thank you
for being here and for such a thorough and informative presentation. I too found it
very easy to follow and to digest because this is clear that this is your life's work,
and your passion, and that you know what you are talking about, and that you love
what you do. Your enthusiasm is very, very apparent.
My one (1) question sort of has to do with the Administration's slide where
you talked about the four (4) separate accounts. One (1) of them you mentioned was
a `Rainy Day Fund.' I thought I heard you say forty-six (46) months of operational...
Mr. Huesby: Four (4) to six (6), not forty-six (46).
Mr. Kuali`i: Four (4) to six (6). I was thinking forty-six (46)
years?
Mr. Huesby: So let us just say that operations cost $50,000.00 a
month, I will just throw a number out. Then you would want a quarter of a million
dollars in an account, so if something happened you have the ability to cover it. The
last thing you want to do is be putting out fires. If a business is putting out fires, it
is not managed properly, then it is going to circle a drain; not going to happen.
Rainy Day Fund.
Mr. Kuali`i: So you had just thrown out that figure of
$50,000.00. Do you have at this point any sense of what the operational budget
might be of the organization prior to the facility, and then maybe after the facility?
Mr. Huesby: Let us say that the facility is operating at this
interim capacity of five hundred (500) head a year, ten (10) head a week. I am going
to make it easy math and say that the wholesale retail weighted average of that
meat per steer or heifer is $2,000.00. So five hundred (500) times $2,000.00 is one
million. So that is the gross revenue that would be generated, that goes through
KMPA and back to the producers, or finisher, stocker, producer, and butcher. I
propose that the salesperson commission only is on a four percent (4%) basis, and on
$1 million four percent (4%) of that is $40,000.00. I think for doing that at ten (10)
COUNCIL MEETING 21 JUNE 13, 2012
head a week, because we used to do ten (10) head a week, well we ended up doing
twenty (20) head a week about a year or two (2) ago. But just thinking to myself
how much time does it take to go knock on a restaurant door, go deliver product,
make sure that you followed up and that the orders were correct, and that you did
not have to return anything and all this kind of stuff, that it would not take a
full-time job to do that. It is only ten (10) head of beef. It is like a two (2) day job.
$40,000.00 ought to cover it. See, so I built that kind of thing into the budget which
I do not have in front of you right now. So I lost the question about where was it
first?
Ms. Bowen: Operational costs.
Mr. Huesby: Operational costs.
Mr. Kuali`i: Prior to the facility and then with the facility.
Mr. Huesby: Prior to the facility is what is happening right now
which is very little. With the facility, operational costs, I do not have those numbers
off the top of my head.
Ms. Nakamura: Councilmember Kuali`i we are going to get a copy.
Mr. Kuali`i: Yes. We can get it later.
Mr. Huesby: It is going to be a part of the study which you can
get a copy of next week. I have got several spreadsheets and different scenarios, and
they are looking at sensitivity analysis — if you add another butcher what does that
do? The bottom line stuff like that. But I do not have the number in my head.
Mr. Kuali`i: The last quick thing, love your metaphor about
the rock and you talked about the potential, the g y p
y p perspective, and you passed it
around to us. And so you called it coal, and I noticed that it smells like paint and
that you painted it black, so is it really coal?
Mr. Huesby: It is not. It is a metaphor rock. I did not have a
black rock and so I painted it black to represent coal, and then look at the facets
and stuff.
Mr. Kuali`i: Thank you so much.
Ms. Nakamura: Councilmember Rapozo.
Mr. Rapozo: Thank you. So you are right now working with
Economic Development? Is that who the lead agency is for the County, as far as the
County's side?
Mr. Huesby: Yes.
Mr. Rapozo: And they are active in the meetings and all that
you have done?
Mr. Huesby: Yes.
COUNCIL MEETING 22 JUNE 13, 2012
Mr. Rapozo: Best case scenario, should this move forward, in a
fully operational facility, what type of job creation are we talking about?
Mr. Huesby: Well initially if it is only, if you are only processing
ten (10) head of beef a week you are only looking at two (2) to two and a half
full-time equivalent people; it is not a lot. It would be nice to say it could be more
but you got to remember when you are inprocessing, the big, expensive processing is
labor.
Mr. Rapozo: Right.
Mr. Huesby: More than the infrastructure. So you need to be
careful and make sure that, again even on the labor side of things that it is on a
piecework basis, not on an hourly basis. I was on an hourly basis and guess what,
when you had a light day you know how everything got done at 5 o'clock when it
could have gotten done at 2:30? It is funny how it happens.
Mr. Rapozo: That happens here a lot.
Mr. Huesby: So we need to do it on performance basis. With that
said, once the facility is fully operational and say like twenty (20) head of beef
including slaughter plus value added, so you are looking at probably a dozen people.
Mr. Rapozo: And what would be in your estimation, and I am
sure it is part of the business plan, what is the minimum head of cattle or any kind
of meat to make this function break even? Do we have enough? If we did ten (10)
head a day, is that sufficient?
Mr. Huesby: Ten (10) head a day is quite well and that was with
paying back a loan not with a grant. And so, I would think that break even analysis
on that was somewhere around six (6) head.
Mr. Rapozo: Six (6) head a day?
Mr. Huesby: A week. A week.
Mr. Rapozo: A week?
Mr. Huesby: Week.
Mr. Rapozo: Processing just six (6) heads of cattle a week
would...
Mr. Huesby: I am keeping the cost on this minimal, no fancy
cadillac stuff.
Mr. Rapozo: Well we need to be real, we need to be real.
Mr. Huesby: This is true.
cost is a lot more
Mr. Rapozo: Constructio n co more, labor cost is a lot
more. So as we move forward I do not want to sound like the pessimist but I want
to...what is that break point? Is it six (6) head? That just seems like wow we could
make this work if it is only six (6) heads of cattle. Six (6) head of cattle.
COUNCIL MEETING 23 JUNE 13, 2012
Mr. Huesby: We are still depending on Sanchez to slaughter at
that point.
Mr. Rapozo: Right.
Mr. Huesby: So this is just processing and minimal
infrastructure to do that.
Mr. Rapozo: Okay. Thank you.
Ms. Nakamura: And at the twelve (12) full-time employees, about
how many of head of cattle would you...
Mr. Huesby: That would be like twenty (20) head a week. So
that is one thousand. That is still only a third of the total on the island produced
annually which is about three thousand (3,000) head, a little over. Realistically will
everybody buy in to this system? The answer is no, you are always going to have
people shipping.
Ms. Nakamura: And then at some point in time, the ranchers may
have higher addition if they can expand the amount of cattle that they have, that
could expand their operations as well?
Mr. Huesby: They could expand, again, by better management
by finding additional land, by getting other leases on land, and by segregating their
cow/calf versus stocker business phases of that, that is correct. What I did not
mention in here and maybe should be as a point of mention is the large landowners.
There are three (3) or so on the island, particularly Grove Farm. Most of my
conversations around here are negative opinions about stuff like that. But the other
side of it is is that those large landowners also have significant resources that could
be grazed; they need to be a part of the equation because you can get let leases from
them. The problem is...it is business.
Ms. Nakamura: Councilmember Furfaro had additional questions.
Chair Furfaro: Yes. Thank you.
I wanted to make sure, I am just trying to be realistic about breaking into the
hotel-resort market. I do not want to imply that that is going to be an easy market
to break in to.
Mr. Huesby: It is not.
Chair Furfaro: It is not.
Mr. Huesby: I am well aware.
Chair Furfaro: I wanted to know, and we talked about you visiting
the IAL piece. As we expand we have to have the appropriate kind of vision for
grazing versus cultivation of food and so on. But I think this program can work well
for what you call a signature product.
Mr. Huesby: Yes.
COUNCIL MEETING 24 JUNE 13, 2012
Chair Furfaro: I think a great model for that is what the Carswells
have done out on the North Shore. I think they slaughter every other Tuesday or
something of that nature.
Mr. Huesby: About three (3) head a week roughly.
Chair Furfaro: Right. Their product is consumed before midday at
the North Shore because they do some force feeding at the end before slaughter and
so forth. They get a pretty decent consistency on the expectation of flavor,
marbeling, and I think it could be done...I believe they call it Princeville Pride?
Mr. Huesby: I think it is North Shore Beef or something. Now
that was combined with Randal Cremer's place too, Jurassic Park I think.
Chair Furfaro: But you have had an opportunity to speak with
them about that project?
Mr. Huesby: Oh yes. I hold her in very high regards by the way.
Chair Furfaro: I do too when I can buy her beef but I do not always
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get there in time.
Ms. Bowen: Jay, let me add in real quickly to that. In the
project that we keep mentioning for the finishing program, we are going to be
relying on a committee of Kaua`i ranchers and restaurants. Maybe we can get a
buyer from the hotels to help advise us as we move forward with the grass finishing
program because we are going to be looking for what are the constraints and how
can we meet those, what are the constraints of the rancher, what works for them,
and yet how can we get them to buy in to meeting these criteria.
Chair Furfaro: There is a culinary association on Kaua`i and I
would suggest you try to recruit one (1) of those executive chefs. They set the
standard for the buyer, it is not the buyer setting the standard for the food
production. Once the executive chef has made the mark on minimum requirements,
then the buyer pretty much just buys. I would get someone involved from the
culinary association on Kaua`i.
Mr. Huesby: I would agree. I have said this in several different
ways and this is just a mirror back to your talk here but we are only interested, in
my opinion, in a race to the top, not a race to the bottom. You must aspire to
quality, and quality always sells. I could care less about generic or average. I will
not, if this is going to be a part of that, I am out of here, I will not do it.
•
Chair Furfaro: Well, that is why I brought up what Princeville has
done, what Princeville Ranch has done with their specialization. We have all seen
the school food documents about what is the end product that we do not want.
Ms. Nakamura: Thank you. Councilmember Yukimura.
Ms. Yukimura: Yes, thank you. Even though there is anywhere
from two (2) to twelve (12) employees, there is also the value of keeping the money
( ) p g Y
in the economy and the indirect jobs that might come from that.
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COUNCIL MEETING 25 JUNE 13, 2012
Mr. Huesby: There is, there is a multiplier effect and you can
use different economic analysis for that. But anytime you keep dollars in your local
community, those dollars bounce around in that community and the multiplier
effect is like four (4) or five (5) times. So it has a huge impact on the local economy,
not to mention the overall pride thing, and the marketing for the tourist, and all
that kind of stuff. There is a lot more leverage going on here. You might liken it to
this pliers for instance, this end of the thing moves a lot, this end moves very little,
but the fact is I can do a lot because I have leverage and that is really what we are
talking about here.
Ms. Yukimura: And the conversation has focused a lot on cattle,
but you did mention that the hog or pig industry and the value added are your
second phase...would also have some additional value added if you will or...
Mr. Huesby: A lot, yes. For every person in here there is ten (10)
sausages to be made in a variety of flavors and things to do with it. I have been
talking with Valerie quite a bit, she is a good friend of mine. Kaneshiro pork has
been suffering lately, and the main reason for that is the cost of importing corn from
the Mainland. And so because of that their finishing pigs are at slaughter that have
carcuses of one hundred ten pounds (110 lbs) when my pigs were one hundred
ninety pounds (190 lbs). If you are in the business of selling meat you need your
carcus weights up. The answer for me for getting the pork industry alive here again
is that we need to go back to these restaurants, grocers, and resorts, and collect all
of the food waste. That is what p i g s do.
Ms. Yukimura: That is recycling, we do not want it in the landfill.
Mr. Huesby: Yes. We do not want it in the landfill, and as long
as we can do it or refrigerate it, or handle it in ways that do not create public health
threats or environmental problems then...and I told Valerie that. There are logistic
issues to that, do not get me wrong.
Ms. Yukimura: Of course.
Mr. Huesby: I understand. But that is the only way I see a pork
program working on this island. Forget midwest corn.
Ms. Yukimura: Well then you need to speak to the Solid Waste
Recycling Division because the curbside recylcing is supposed to evolve toward wet
recycled and dry recycled in the collection format. The wet recycled was thought to
go to composting, so that may be, you might be offering another use. That could be
coordinated possibly, although there are issues of contamination and so forth that
you would have to address.
Mr. Huesby: You would have to address things.
Ms. Yukimura: Can you also process wild pigs?
Mr. Huesby: Yes. The problem is wild pigs or for instance on the
other islands the Axis deer, but the thing about...what they are called are
non-amendable species; USDA allows you to process that. You cannot use the same
cooler and the inspector now costs money. So all of your domesticated livestock is
free for the inspection. When you do a feral pig or a deer, then the inspector costs
and you have to have a separate cooling and processing, or you could use the same
COUNCIL MEETING 26 JUNE 13, 2012
processing area, but you have to do extra sanitation things for cross-contamination.
It is kind of like we do not want to mess with that right now, maybe later, but not
now.
Ms. Yukimura: Okay. Then lastly, two (2) things, the Chair's
concern about important ag lands and the competing uses for ag lands are really
going to have to be rationalized somehow and we are all trying to figure it out; but
that is a concern. If we can use potential pasture land to grow biomass that is going
to provide energy is one (1) thing versus, and I do not know how to measure all of
that, but I can just see that, the competing issues.
Mr. Huesby: So what I would like to do instead of competing is
turning it in to complementary issues.
Ms. Yukimura: That would be wonderful.
Mr. Huesby: The waste of the one (1) is the food of the other.
Ms. Yukimura: Synergy.
Mr. Huesby: So we find ways to work with living systems,
incorporate them into their areas of waste stream management where they fit in
their life stage, stockers need protein, they are not finished, so we put them under
the trees, stuff like that.
Ms. Yukimura: That would be wonderful. My last question is, you
mentioned that nationally we have the lowest cattle inventory in eight (8) years?
Mr. Huesby: In eighty (80) years.
Ms. Yukimura: In eighty (80) years?
Mr. Huesby: Since the 1940's.
Ms. Yukimura: What is the cause of that? We would need to be, we
would need to know the fluctuations of the industry to a certain extent.
Mr. Huesby: If Kaua`i does its own thing here, who cares about
the industry?
Ms. Yukimura: It does not matter. It is like...
Mr. Huesby: It is not our game, we are playing our own.
Yukimura: I got it. So that is like becoming independent of
Ms. a
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fossil fuels?
Mr. Huesby: Yes.
Ms. Yukimura: We become independent of the world market for
beef.
Mr. Huesby: In so many words. Yes.
COUNCIL MEETING 27 JUNE 13, 2012
Ms. Yukimura: Okay. I understand, thank you very much.
Ms. Nakamura: Councilmember Rapozo.
Mr. Rapozo: One (1) of the things is the local beef, you talked
about it earlier, it has a different taste.
Mr. Huesby: Yes.
Mr. Rapozo: That is my favorite beef. I had to acquire a taste for
Mainland beef because I was born and raised here. I am hoping that this
standard...we do not lose that. That in fact, we are going to retain the local beef
characteristic. I mean Sanchez beef, whether it is a plug or not, for me I love his
steaks, put them on a grill it is really good. I am just hoping that this, that we are
not going to change that or lose that. I think you said that earlier, that you hope it
stays. I am concerned that we start changing the standards and then all of a sudden
we lose that characteristic of our local beef.
Mr. Huesby: I do not think you will for two (1) reasons: 1) the
flavor of the meat comes from the fat, the fat comes from the forage, and the forage
comes from the soil, and that is unique to this climate here; that is not going to
change; and 2) the other thing that is not going to change is we are not going to be
feeding corn fed beef in feed lots on this island, it is not going to happen. The
economics will not work; any corn that is around here is frankencorn by Syngenta
and do not forget, it is not going to be grazed. We do not need to worry about that, it
is not midwest corn that is going to come here. It will be forage finished, we just
need to make sure that the sugars in whatever forages we choose — sorgum,
sugarcane, corn, these warm seasoned annual grass, you have that flavor profile
that is local but not offensive; that is your balance.
Mr. Rapozo: But the challenge is what is offensive to one (1)
may not be offensive to others.
Mr. Huesby: You are going to have to shoot in the middle.
Ms. Bowen: Mel, that is exactly why when we work through
this program we are going to have a committee of folks that are local and they
would be the growers. I think that we are going to be able to really address some of
these things. Matt Stevenson with CTAHR Extension Office has been working with
the ranchers here on island and Statewide on some tenderness and taste studies,
and so we are going to be incorporating the data that we have been collecting.
Mr. Rapozo: I will volunteer for the taste test. Thank you.
Ms. Nakamura: And if Councilmembers have any suggestions on
who should be on that committee, maybe we can forward those ideas over to Sarah.
Mr. Huesby: We would love that.
Ms. Nakamura: Any other questions? The next step then is to begin
the next phase of the work that does not start until July 1; that is when the funding
becomes available. You said that the business plan would happen first, and I think
the next time that we will hear from Joel will be when we have a draft business
plan, a business plan that you then can brief us on assuming that everything goes
COUNCIL MEETING 28 JUNE 13, 2012
okay tonight and we have leaders that step up and agree that they want to pursue
this next phase of work.
Mr. Huesby: Yes. Absolutely. It is based on the assumption that
we have the players.
Ms. Nakamura: Right. And so what we will do is coordinate with
the Office of Economic Development, and George Costa is also in the audience here,
I did not see you earlier, and coordinate with KEDB so that when that business
plan is ready, that we will have a briefing.
Mr. Huesby: The other thing that I would like to do at that time
is put in the formation of KMPA basically on a parallel timeframe with this. If my
tentative agenda is that I come back in September, at that time I would want to
have a KMPA Board of Directors in place or the organizational structure whereby
we can adopt the business plan. If you do not have an organizational structure, you
cannot make decisions. We have to have approvals. That has to kind of come
parallel with the business plan.
Ms. Nakamura: So maybe sometime toward the end of the year if
we could get a briefing on the business plan and the organizational structure,
progress you have made, then I think that will be the next step for us of your
interaction with this body.
Mr. Huesby: Okay.
Chair Furfaro: I will be writing to Planning and George Costa to
make sure through Economic Development you have access to the draft of the IAL,
so you can see our proposed draft of our land management at this point.
Ms. Nakamura: I believe Sarah was also on the technical advisory
committee for that IAL study.
Chair Furfaro: Well that is fine if she is available. The reality, it
needs to be looked at by him through Economic Development because this is an
Economic Development program. I want to make sure you understand where
p p g Y
Planning is going.
Mr. Huesby: Okay.
Ms. Nakamura: Thank you very much for being here and for that
presentation.
Mr. Huesby: You are welcome.
Ms. Bowen: Thank you.
Ms. Nakamura: Does anyone from the public want to testify? Glenn
Mickens? Please come up.
GLENN MICKENS, RESIDENT: Thank you, Nadine. For the record
Glenn Mickens. I just have a fast question probably. I thought it was an excellent
testimony by Joel, I thought he did a great job of clarifying stuff. I think I heard
him say that beef was at an all time high, but all health reports I have seen in
COUNCIL MEETING 29 JUNE 13, 2012
recent years shows that red meat being on the sparingly used list and fish being on
the expanded list, should that not mean that the price of beef would be down and
not up? I love a good hamburger as much as anybody probably here. I used to eat
meat continually when I was growing up when I was in Japan eating that Kobe
beef; there is nothing better than Kobe beef. It was hand massaged, it was excellent.
Since seeing this health report I have been using fish more and more. So the push to
get beef growing on this island, I am not sure, and I think if I heard wrong, but I
thought he did say that the price of beef is up. But if they are pushing more and
more to stay away from using red meat whether it is pigs or cows or what it
happens to be, I would think that it would be dropping the price of this. Anyway,
that was basically my question to Joel, but I thought his explanation and
everything was excellent. Thank you, Nadine.
Ms. Nakamura: Thank you. Would anyone else like to testify?
MATTIE YOSHIOKA, KAUAI ECONOMIC DEVELOPMENT BOARD: I
have not been here for a while. I am Mattie Yoshioka, Kaua`i Economic
Development Board.
The management of the several feasibility studies that you will be hearing
today. You have heard the first two (2), the draft of the first two (2), and you will be
hearing the next two (2) in the next couple of weeks. We are very pleased with our
consultants and the proposed outcome of these feasibility studies. We would like to
thank the Council for your continued support, along with the Mayor, and the Office
of Economic Development, George Costa. KEDB's main role in this whole thing,
overarching role, is for the creation and expansion of jobs here on Kauai• we have g p jobs e to
keep that in mind. These feasibility studies that are being developed and the next
phase that are the business plans will still need to be analyzed, we still need to see
what the low hanging fruits are and go from there. This process is not done; it is
continuing, it is dynamic. I just wanted to say that that is our overarching role of
KEDB, which is the creation, expansion, and diversification of our economy. Again,
thank you.
Ms. Nakamura: I just wanted to say, Mattie, that we really
appreciate the approach that you have taken and directed the consultants to really
go out and not just do it in a vacuum but engage our community in these
discussions from the very beginning; that is very much appreciated.
Ms. Yoshioka: I am very pleased at the dynamics that is going on
during this past several months. All of our consultants have engaged the
community to the fullest extent. I want to just thank them all for doing that.
Ms. Nakamura: Councilmember Yukimura.
Ms. Yukimura: I want to add to Councilmember Nakamura's
thanks. You have done such a good job in the selection and the oversight of the
consultants, and that has been a part of the quality of the reports that we have been
getting back, and the potential now to move ahead in the diversification. We really
appreciate your partnership and the way you do your jobs.
Ms. Yoshioka: Well, being a non-profit and outside the
government and procurement processes, it makes the procedures and process go
along very smoothly and faster, having been in government in the past.
COUNCIL MEETING 30 JUNE 13, 2012
Ms. Yukimura: You are absolutely right about the process, and the
capacity, and the quality of the non-profit is really, very good, so thank you.
Ms. Yoshioka: Thank you.
Ms. Nakamura: Chair Furfaro.
Chair Furfaro: Mattie, this is for you too, I do want to thank you
again for your organization and office organizing our site inspections. I also just
want to thank you, your office, your team, really gives everybody a sense of
confidence that we are heading in the right direction, it is much appreciated.
Ms. Yoshioka: I have assembled a great team.
Chair Furfaro: You have.
Ms. Yoshioka: Thank you.
Ms. Nakamura: Thank you, Mattie. Would anyone else like to
testify? If not, I will hand this back to the Chair.
The meeting was called back to order, and proceeded as follows:
Chair Furfaro: Okay. We are going to take a caption break. I do
want to say that the caption break will be fifteen (15) minutes due to a little briefing
that I need to get, so we have a motion and a second to receive, and we will be on a
fifteen (15) minute caption break. Any further discussion before I ask to receive?
Yes?
Ms. Yukimura: I guess, Chair, I would just like to thank
Councilmember Nakamura for her leadership on these CEDS projects. It is very
exciting to see them moving forward effectively.
Chair Furfaro: Yes, I would say that it is to our benefit that the
CEDS Program are allowing us to look at other economic options for our County.
The motion to receive C 2012-179 for the record was then put, and
unanimously carried.
There being no objections, the meeting recessed at 11:12 a.m.
The meeting reconvened at 11:39 a.m., and proceeded on its agenda as follows:
Chair Furfaro: We are back from recess, and in order to proceed
accordingly on our agenda today and allow the Prosecutor's Office to have some
time to be in court this afternoon, I am going to ask the County Clerk if we could go
into Executive Session now. If after Executive Session the Prosecutor would like to
speak or the Office of the Prosecuting Attorney when we come out, they can speak
then on Communication 2012-170. Okay?
There being no objections, ES-550 was taken out of order.
There bein g no objections, the rules were suspended.
J � p
COUNCIL MEETING 31 JUNE 13, 2012
AL CASTILLO, JR., COUNTY ATTORNEY: Good morning Council Chair
and Councilmembers, Al Castillo, County Attorney. The next matter for your
consideration is ES-550.
EXECUTIVE SESSION:
ES-550 Pursuant to HRS section 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 the Council to consult with the County Attorney
regarding a request to the Board of Ethics to investigate whether a violation of the
Code of Ethics occurred in connection with the creation and operation of the
P.O.H.A.K.U. program and the Finance Department's review of the P.O.H.A.K.U.
program and related matters. This 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.
There being no objections, the meeting was called back to order and proceeded as
follows:
Mr. Rapozo: Mr. Chair?
Chair Furfaro: Yes?
Mr. Rapozo: I would suggest we also read ES-551 so that we do
not have to go through this exercise at a later time.
Chair Furfaro: The reason I only read this one (1) was to
accommodate the Prosecutor's Office, but the reality is we only have forty (40)
minutes to meet. Al, I will call you back later, although I accept Mr. Rapozo's
request, this is the item that I want to take care of.
Mr. Rapozo moved to convene in executive session for ES-550, seconded by
Ms. Yukimura.
There being no objections, the rules were suspended.
Ms. Iseri-Carvalho: I have a question about going into executive
session.
Chair Furfaro: About executive session?
Ms. Iseri-Carvalho: Yes.
Chair Furfaro: Only about going into executive session?
Ms. Iseri-Carvalho: Yes.
Chair Furfaro: Yes, go ahead.
SHAYLENE ISERI-CARVALHO, PROSECUTING ATTORNEY: Good
morning...
Ms. Yukimura: Excuse me, Mr. Chair? Could I just ask now?
COUNCIL MEETING 32 JUNE 13, 2012
Chair Furfaro: Yes?
Ms. Yukimura: If you are speaking on this issue on the
P.O.H.A.K.U. Project, are you waiving all your rights as to...
Ms. Iseri-Carvalho: No, I think you should hear when I speak...
Ms. Yukimura: Well, because you have said you will not testify on
the P.O.H.A.K.U. Program...
Chair Furfaro: Hold on one (1) moment please. I will ask the
question again, Shaylene, are you only speaking on our move to go into executive
session?
Ms. Iseri-Carvalho: That is correct.
Chair Furfaro: Your plan is after we go into executive session to be
able to speak on the agenda item C 2012-170?
Ms. Iseri-Carvalho: Yes. Just specifically relates to your question
regarding special counsel. I have prepared documents documenting all our
communications with the County Attorney's Office with respect to obtaining special
counsel; we have yet to obtain special counsel. We have had numerous
communications that have gone unresponded to by the County Attorney's Office.
Ms. Yukimura: Mr. Chair?
Ms. Iseri-Carvalho: In light of the question raised by Councilmember
Yukimura regarding our intent...
Ms. Yukimura: No, my question was not about special counsel.
Chair Furfaro: Excuse me. This body will follow a procedure set
and managed by the Chair. We will let her speak to the question about us going into
executive session, that is what we are dealing with.
Ms. Yukimura: Mr. Chair, point of order. The issue is on the
P.O.H.A.K.U. project. The Prosecutor has said that she will not answer questions or
speak on the P.O.H.A.K.U. project. If she makes testimony, and then we are not
allowed to question, it does not make, I mean it seems highly improper. I am trying
to understand if her position about speaking on the P.O.H.A.K.U. project has
changed because this issue is about the P.O.H.A.K.U. project.
Chair Furfaro: I understand. We will have that in C 2012-170. You
will have that opportunity to ask that question. I would like this Council to get
briefed by the Attorneys on this behind our executive chambers. If she is speaking
only on the rationale of why we are going into executive session, I will accept that.
Now if you want to call for a vote of the body to allow her to speak or not before we
go into executive session, then ask to call the vote. That is my interpretation ri g ht
now. You will have an opportunity to speak with her in open session when we come
ou t of executive session.
Thank you, Mr. Chair. I want to just explain m
Ms. Yukimura: y � p my
point of order because she was not speaking about the executive session, she was
COUNCIL MEETING 33 JUNE 13, 2012
speaking about special counsel. I am not, that is why I am wondering, that does not
seem in order.
Chair Furfaro: Okay. It does seem in order to you, I am okay with
her talking about special counsel.
Ms. Yukimura: Alright. Then I have registered my point of order.
Chair Furfaro: We will register her other question to you when we
come back in session if she is waiving her rights to speak about it.
Ms. Yukimura: Okay.
Chair Furfaro: I certainly understand your point. I would like to be
briefed by the County Attorney first.
Ms. Yukimura: Yes. Thank you.
Ms. Iseri-Carvalho: May I proceed?
Chair Furfaro: Yes.
Ms. Iseri-Carvalho: As I was answering Ms. Yukimura's question, her
purpose of her statement is totally untrue because I did not get an opportunity to
speak this morning with respect to that issue. I assume her impressions are from
the first, first meeting when we were advised by our County Attorney not to make
any statements until special counsel had been appointed. Councilmember
Yukimura is well aware of the phrase `he who represents himself has only a fool for
a client.' In light of that fact that we are talking about County liability and the
conflict that we had with the County Attorney's Office, I have prepared for the
Councilmembers all of the communications with the County Attorney's Office dating
back from April 10 all the way until June 7, I believe. I am sorry, today. Dating
back to today where we have been denied special counsel. We have not had any
opportunity to seek special counsel even despite the numerous amount of
correspondence. I would say that there is at least twenty-six (26) communications
between our office and the County Attorney's Office asking for the request to have
our interest represented and that has been denied despite that fact. However, we
are in concurence with the request by Ms. Yukimura on ES-550, which is
requesting...I am sorry, that is the request for special counsel. I believe
Ms. Yukimura is requesting that the Council provide approval of her request to the
Board of Ethics to conduct an investigation of whether the violations of the Code of
Ethics have occurred in connection with the creation and operation of the
P.O.H.A.K.U. Program and related matters, despite the fact that we do not have
counsel, we concur with that request by Ms. Yukimura. We would also ask
Ms. Yukimura, concurrently with that request, and with the rest of the Council that
there is a request to have that be expanded to include the inception of the
P.O.H.A.K.U. Program, which initially started with Craig DeCosta on the Bad
Check Restitution Program. We will make our presentation with respect to that
when we return. However, I wanted the Councilmembers to be clear about our
Office's position. We have already provided information regarding the P.O.H.A.K.U.
Program, which initially started with Craig DeCosta's Bad Check Restitution
Program to Gail Ching who is...
COUNCIL MEETING 34 JUNE 13, 2012
Chair Furfaro: I am going to caution you there. Mr. DeCosta is not
on the agenda today.
Ms. Iseri-Carvalho: The P.O.H.A.K.U. Program is a program that was
initiated with Craig DeCosta's...
Chair Furfaro: The P.O.H.A.K.U. Program is on the agenda, and I
am saying to you, if any comparison of about past procurement by previous
Prosecutors and so forth, that is not on the agenda today.
Ms. Iseri-Carvalho: Well, we are saying that it is pary, that is the
evolution of the P.O.H.A.K.U. Program, and that if that item is not an item that this
Council is going to hear, then we request a concurrent agenda item for that
information, because this program initiated from that; everybody knows that
because we have provided this information.
Chair Furfaro: Your request is so noted.
Ms. Iseri-Carvalho: We will be sending over a request to the Board of
Ethics and would ask the County Council to also join the Prosecuting Attorney's
Office in making a request to look into ethical violations, as well as criminal
violations regarding the Bad Check Restitution Program that initially began or
followed...
Mr. Bynum: Point of order, Mr. Chair. I find this highly
improper.
Chair Furfaro: I have got this, you heard my message.
Mr. DeCosta's issue is not on the agenda today. If you so wish to bring that in, then
you make a request through this Office, my Office. I would also like to point out to
you that this Council body, we are not the Procurement Office for the
Administration of which you are a part of.
Ms. Iseri-Carvalho: Exactly. Well, I do not believe that we are a part of
the Administration.
Chair Furfaro: Your procurement comes under your contract; your
contract reviews come under the Administration.
Ms. Iseri-Carvalho: That is correct. I would also like you to consider
that we have provided the advice from our attorney which was Jennifer Winn,
initially, when she was representing us, that this was an Administrative matter
and that she felt it was totally inappropriate for the County Council to be
considering this.
Chair Furfaro: I will watch for your written communication. I am
going to call for the vote on this item right now.
Ms. Iseri-Carvalho: And I would ask that these communications
between the attorney be distributed.
Chair Furfaro: I am going to call for the vote right now. You want
to distribute that correspondence, you do it through the Clerk's Office, you can do
that now.
COUNCIL MEETING 35 JUNE 13, 2012
Ms. Iseri-Carvalho: That would be fine.
There being no objections, the meeting was called back to order and proceeded as
follows:
The motion to convene into executive session was then put, and carried by
the following vote:
FOR CONVENING IN EXECUTIVE SESSION: Bynum, Chang, TOTAL — 7,
Kuali`i, Nakamura, Rapozo, Yukimura, Furfaro
AGAINST CONVENING IN EXECUTIVE SESSION: None TOTAL— 0,
EXCUSED & NOT VOTING: None TOTAL— 0.
There being no objections, the meeting was in recess at 11:55 a.m.
The meeting reconvened at 2:48 p.m., and proceeded as follows:
C 2012-173 Communication (05/01/2012) from Robert Crowell, Chair, Salary
Commission, transmitting pursuant to Section 29.03, Kaua`i County Charter, the
Salary Commission's Resolution No. 2012-2, relating to salaries of the Police and
Fire Chiefs and their deputies, adopted by the Salary Commission on April 23,
2012.
Chair Furfaro: Mr. Clerk, I am going to direct a question to you.
The fact of the matter is this piece was transmitted to us on April 23, that means
the sixty (60) days would expire on June 23. I would like to ask, since no one (1) was
able to respond to us from the Commission to give us an overview, but they did
respond to my request for copies of the minutes; I hope that was distributed to the
members, Mr. Morimoto had copies, were they distributed? I think he is in his
office. To share with you, my request is going to be to distribute the minutes, try a
second time to get someone from the Salary Commission here, but to the Clerk's
Office I would like to post a special meeting on June 22, which is the last day we can
respond to this as a Special Council Meeting. I understand it is a travel day for us
as well. The clock is ticking, we did not get any minutes or correspondence in
advace, and I just want to know if that is even possible to do an 8:30 a.m. meeting
on the 22nd.
Ms. Yukimura: Mr. Chair? Is it possible to do it on the 23rd instead,
a regular Council day?
Mr. Bynum: The 20th.
Ms. Yukimura: I am sorry?
Mr. Bynum: The 20th.
Ms. Yukimura: The 20th.
Chair Furfaro: I want to make sure you heard what I said, it
expires on the 23rd, many of us will be at the State Conference of Counties.
Ms. Yukimura: On Wednesday?
COUNCIL MEETING 36 JUNE 13, 2012
Chair Furfaro: It expires on the 23rd, I think the 23rd is a
Thursday.
Ms. Yukimura: I am thinking next week...
Chair Furfaro: Let me say it again.
Ms. Yukimura: Okay.
Chair Furfaro: The bill came over on April 23, sixty (60) days
means it expires on June 23, we have a Council Meeting on the 20th. So that we do
not run into a drop dead bill, I am asking if I passed out the minutes to all of you,
have we done that yet, Peter? That I would then ask that we have an 8:30 a.m.
meeting prior to our meeting on the 20th. On the 20th, in the afternoon, many of us
are on a flight to the State Conference of Counties, that way we would deviate from
the critical path here. We would do it in an 8:30 a.m. meeting on the 20th. Is that
acceptable?
The minutes have been passed out to you folks. Clerk, I would like to also
attempt to get someone from the Salary Commission here to answer some
questions. I will take testimony today because we have not seen their discussion or
their minutes. We would take this action on 8:30 a.m. on the 20th. Members, is that
reasonable and acceptable? Is there anyone in the audience that would like to
testify on this? Chief are you here for a testimony dealing with this bill? I was not
successful in getting a representative from Mr. Crowell or Mr. King or Mr. Finlay
here to discuss this with us.
There being no objections, the rules were suspended.
DARRYL PERRY, CHIEF OF POLICE: Actually, all the information is
with this body, it is with the Salary Commission. There is not much more that I can
say, so I will put it in your hands. This body knows how we feel. When the letter
came down from the Mayor, it talked about the economic situation, and he wrote
the letter to the Salary Commission. Basically what you are talking about, there is
two (2) issues here: 1) Finance; and 2) Economics. When you are talking about
finance you are talking about money. When you are talking about economics and
the economic climate, what you are talking about is value, how you value what you
are looking at. In this case you are looking at the Deputy Chief, the Fire Chief, the
Chief of Police, and the Deputy Fire Chief. I am very passionate about this because
it is how this County, how this body, and how this Salary Commission values public
safety workers. You have all the figures on the inversion, you have all the figures on
the other Departments, you have that with you, so I am not clear on the minutes
that have to be read, you have that information. I will leave it up to you, Chair.
Chair Furfaro: I am going to say to you, Chief, that you missed
part of it. It is also about retention, it is about keeping good people.
Mr. Perry: Absolutely.
Chair Furfaro: Nothing came over to us in the form of a statement,
narrative, or minutes on their discussion about these salary issues for the Fire
Chief, the Police Chief, and the two (2) Deputies; nothing.came, I had to request it.
We also made a request to see if any member of the Salary Commission could be
available to dialogue with us; no one (1) is available. I think in fairness and due
COUNCIL MEETING 37 JUNE 13, 2012
diligence to the Council, it is only reasonable that we take action on this one (1)
week from today, and that we still make the deadline.
Mr. Perry: The only comment I have is that these issues were
brought up with the Mayor's Office. It was up in their Office to be signed and
forwarded here. Now, the reason why it took so long, maybe that is something the
Council can look in to —why was it delayed that long?
Chair Furfaro: Well, you heard me a few minutes ago, even to get
a map I had to call. In all fairness to this Council, Chief, we want to make sure that
we have done our due diligence, review the narrative of the meeting, and at least
try to see if we can have one (1) of the Commissioners here. We will do that next
week, we will act then.
Mr. Perry: Thank you, Sir.
Chair Furfaro: Mr. Rapozo, then Councilmember Nakamura, I am
sorry, Councilmember Yukimura.
Mr. Rapozo: Chief, thank you for being here today. The original
intent for the Salary Commission was because of the inversion. In fact, you had a lot
of people in the Departments that were making more money than the Department
Head.
Mr. Perry: Correct.
Mr. Rapozo: Hence the study and then the increases in salaries
for the Department Heads and the Deputies back in 2007, or 2006, or whenever that
was. My question is, and this is of concern to me because recently the Mayor signed
an Executive Order that is going to retroactively pay the excluded management
personnel in the Fire and Police Departments back to 2009.
Mr. Perry: That is correct.
Mr. Rapozo: That is going to have a tremendous effect on the
inversion again. I do not know the numbers and I apologize because I did not talk to
you before the meeting, I did not expect you to come up. What does that do to your
EM's, your excluded management personnel in relation to your salary?
Mr. Perry: Well, I have the numbers right here.
Mr. Rapozo: I just need a ballpark figure.
Mr. Perry: The ballpark figure is that one (1) of the Assistant
Chiefs, at my current salary, will be earning more than $13,000.00 more than the
Chief of Police, and $20,000.00 more than the Deputy Chief of Police. The other
Assistant Chief is about the same. A Captain will be making approximately
$5,000.00 more than the Deputy Chief of Police right now. We are talking about the
in-house people that are getting, and they deserve that money, I truly believe they
deserve that money. But something needs to be done on the inversion. We are not
talking about the other Counties, about how ahead they are, just here.
Mr. Rapozo: I really not concerned about...I am talking about
Kaua`i, because now we are worse off now with the recent Executive Order that was
COUNCIL MEETING 38 JUNE 13, 2012
signed, the retroactive pay for 2009, 2010, and 2011 which compounds. So now you
are going to be way behind and I am assuming the Fire Chief is going to be the
same way.
Mr. Perry: Correct.
Mr. Rapozo: And I believe, I am not sure how many EM's, I have
not looked at the Budget yet, but I have to believe that Battalion Chiefs are EM's, I
am not sure if the Captains are EM's, I have to go look it up but there is quite a bit.
My concern, and this is really for the Salary Commission to look in to, because now,
the inversion issue, we are back to square one again. Now, you have subordinates
that are going to make $13,000.00 were than the Department Head is - incredible. I
do not know how to fix that. Even if this salary resolution passes next week, you
will still be behind the `eight ball,' you will still be behind the EM's that work under
you.
Mr. Perry: Correct. The difficult part, I know the Chair
mentioned it, is succession planning and retention. Those are very hard issues.
When I asked Deputy Chief Contrades to be the Deputy Chief, he took a $15,000.00
cut in pay. That is unconscionable to me for him to do that. He is dedicated to this
community, dedicated to the Police Department, he is willing to do that, he is
willing to sacrifice. There is an opportunity by the Salary Commission, and the
Mayor's Office, and this body to kind of make it right because he will still be behind.
Mr. Rapozo: Why would he not want to step down to be a
Captain or an Assistant Chief?
Mr. Perry: He would certainly make a lot of money than he
does now.
Mr. Rapozo: The problem lies in again both Fire and Police,
when there is a vacancy in a Chief or Deputy Chief position, who in their right
mind, and we thank Mike...when Mike took the job, the salary schedules were not
the $120,000.00 or whatever it is for an Assistant Chief. Had that been the case I
am not sure Mike, I mean, I do not know, we can speculate all we want. The
problem is it is going to be difficult to find people to leave a position of, and the
EM's get overtime as well.
Mr. Perry: Correct.
Mr. Rapozo: So this inversion problem is not going to get fixed if
we do not fix it. Now I am really concerned, especially with that recent Executive
Order; it is really bothering me
Chair Furfaro: Okay, I want to make it clear here, I do not want to
drift off to this Executive Order. This Council only saw the Executive Order ten (10)
days ago. This fact of the matter is we just went through the budget process. I know
the numbers for three (3) of the four (4) collective positions between Police and Fire
on what the difference is in meeting with them. But the reality we are back to the
question that we have to convey to the Salary Commission, this is about continuity,
this is about retention, whatever the subject of decisions that Mr. Contrades made
to elevate his professional opinion, we need to make sure that we got a structure
that stays competitive for retention, that is another reason that I am asking for the
additional week.
COUNCIL MEETING 39 JUNE 13, 2012
Mr. Perry: The only question I have, if someone from the
Salary Commission does not come here with the information that you require, then
what happens to the bill? Does it die?
Chair Furfaro: I would like to say, if they do not come over, we will
take action, okay? If they do not come over, we will take action. How that vote goes,
we need five (5) votes to get it clear. We will take action. This is a very focused
Council, Chief. And when we see situations that were just described, we want to
make sure that there is an understanding that we need to have a level playing field.
I appreciate your understanding. I need the week, I am requesting a week. Now, I
have the minutes distributed. Vice Chair Yukimura.
Ms. Yukimura: Thank you, Chief, for being here. This is the first
time I am seeing the minutes. I was just scanning it and I have to admit I am not
totally familiar on the issues. This salary differential is with overtime? Or, is it just
the base pay?
Mr. Perry: No. With the Executive Order it is just the base
pay. The base pay for the Assistant Chief will be approximately $13,000.00 more
than the Chief, and about $20,000.00 more than the Deputy Chief.
Ms. Yukimura: Thank you. Those are very serious differentials. My
concern, though, also goes to equity laterally in executive pay. I cannot tell that that
was addressed by the Salary Commission.
Mr. Perry: You mean with other Department Heads?
Ms. Yukimura: Yes.
Mr. Perry: That is an issue in itself too. Law enforcement,
traditionally throughout the Nation, and you can have somebody do the research,
law enforcement is treated differently because we are different. We are not in the
office, we carry a gun, we carry a vest, we are out there putting our life on the line.
We can take away individual freedoms, we are the most litigious Department in this
County and throughout the Nation. So all Departments are treated differently. If
you look at any County, you will find Maui, Honolulu, and Big Island, the Chiefs are
paid more than any other of their Executive Heads.
Ms. Yukimura: And they are making more than the Mayor or equal
to the Mayor?
Mr. Perry: Certainly. In some areas they do.
Ms. Yukimura: The Police Chief is in other Counties?
Mr. Perry: Sure. Yes. In Honolulu the Mayor makes I think
$115,000.00; currently Louie Kealoha makes $144,000.00.
Ms. Yukimura: I guess I think, I would like to know, I see salary
setting as a very complex thing and very important. Are there no other inversions in
the County, in the other Departments?
COUNCIL MEETING 40 JUNE 13, 2012
Mr. Perry: You will have to check with them. I am sure there
is, but they were probably added overtime to that.
Ms. Yukimura: That is sort of what I would expect the Salary
Commission to look at because...and recruiting, whether it is hard for us to get a
public engineer for example at the level that is required to get really good people.
Those are some of the things that I am hoping the Commission looked at.
Mr. Perry: One (1) thing you have to understand is that as an
appointee we do not have the option to earn overtime, whereas the excluded
management and others do have that option, it goes towards their benefit.
Additionally, if you calculate the $7,000.00 raise that is proposed, that comes out to
eighty cents ($0.80) an hour for myself...eighty cents ($0.80) an hour.
Ms. Yukimura: Yes. But you could apply that to the County
Engineer that he does not get overtime either right?
Mr. Perry: Sure.
Ms. Yukimura: If you give him $7,000.00 it would be an eighty
cents ($0.80) an hour probably too.
Mr. Perry: If you apply that to a patrol officer, a P0-7,
overtime, if he works 24/7 like we do, he would get paid over $30.00 an hour, we
would get paid eighty cents ($0.80) an hour.
Ms. Yukimura: Plus your regular pay.
Mr. Perry: Plus his regular pay too.
Chair Furfaro: Let us reach the point here on what I want to do,
Vice Chair.
Ms. Yukimura: Thank you.
Chair Furfaro: To the Chief, we are still waiting a summary of the
Mayor's Executive Order. I have asked to have it presented to all the
Councilmembers, its impact, I hope that happens to us very soon. For this moment I
am saying to the members, I am looking for a motion to refer this to a Special
Council Meeting, 8:30 a.m., June 20, 2012.
There being no objections, the meeting was called back to order, and proceeded as
follows:
Ms. Nakamura moved to defer C 2012-173 to a Special Council Meeting at
8:30 a.m. on June 20, 2012, seconded by Ms. Yukimura, and unanimously
carried.
Chair Furfaro: Thank you, Chief. It will be the first item on the
20th at 8:30 a.m. in the morning.
Next item, I see that the Prosecutor's Office is here. I want to go back to that
item. I want to make a clear statement here as well. I have asked in the previous
meeting that if there is any discussions about the previous structure with the
COUNCIL MEETING 41 JUNE 13, 2012
Prosecutor's Office in comparison to the P.O.H.A.K.U. Program that that gets
submitted to me in writing as a new posting, not for activity today.
C 2012-170 Communication (05/17/2012) from Councilmember Yukimura,
requesting Council approval of her request that the Board of Ethics conduct an
investigation of whether violations of the Code of Ethics have occurred in connection
with the creation and operation of the P.O.H.A.K.U. Program and related matters:
Mr. Bynum moved to approve C 2012-170, seconded by Ms. Yukimura.
Chair Furfaro: We are going to take a ten (10) minute recess while
the PowerPoint gets set up.
There being no objections, the meeting recessed at 3:08 p.m.
The meeting reconvened at 3:22 p.m., and proceeded as follows:
g p p
Chair Furfaro: We are back from our recess. Jake, I am going to
give you the floor. Again, I just want to make note that you will be given six (6)
minutes in your presentation as we already have a motion to approve. You can
certainly make your PowerPoint Presentation, but I want to make sure that we do
not rehash anything dealing, with the previous Prosecutor's Office referencing
Mr. DeCosta's diversion programs. I certainly will, if you want me to put it on as an
agenda item in the near future, please write to me to that effect. I will give you the
floor now.
AL CASTILLO, JR., COUNTY ATTORNEY: Excuse me, Council Chair. For
the record Al Castillo, County Attorney. May I have five (5) minutes with the First
Deputy and the Prosecutor before he goes on?
Chair Furfaro: I i
w 11 take a recess and allow 5 e ou the five
Y (5)
minutes if you would like to meet with them, yes.
Mr. Castillo: Thank you.
There being no objections, the meeting recessed at 3:22 p.m.
The meeting reconvened at 3:57 p.m., and proceeded as follows:
Chair Furfaro: We are going to recess from the other agenda item
here. Jake, for your information, we are going to start taking care of some other
business here. Start from C 2012-180.
C 2012-180 Communication (05/21/2012) from the Director of Finance,
transmitting for Council information, the Period 10 Financial Reports — Statement
of Revenues as of April 30, 2012, for Fiscal Year 2012, pursuant to Section 21 of the
Operating Budget Ordinance (B-2011-732), County of Kaua`i: Mr. Rapozo moved to
receive C 2012-180 for the record, seconded by Mr. Kuali`i, and unanimously
carried.
C 2012-181 Communication (05/07/2012) from the Director of Finance,
transmitting for Council information the following reports:
(1) County of Kaua`i Bond Summary of General Long — Term
Debt Amount Outstanding as of July 01, 2011;
COUNCIL MEETING 42 JUNE 13, 2012
(2) County of Kaua`i Bond Supplemental Summary of General
Long— Term Debt Amount Outstanding as of June 30, 2012;
Excluded County of Kaua`i Bond Supplemental Summary of
Long — Term Debt Amount Outstanding as of June 30, 2012:
CFD No. 2008-1 (Kukui`ula Development Project) Special
Tax Bonds, Series 2012, sold April 25, 2012.
Mr. Rapozo: Mr. Chair?
Chair Furfaro: Yes?
Mr. Rapozo: Is it possible, I know next week's agenda is going to
be tight and we are all flying out, I do not have a problem receiving this but I would
like a briefing if possible maybe at the next Committee Meeting...
Chair Furfaro: What if we put it at Council in two (2) weeks?
Mr. Rapozo: That is fine.
Chair Furfaro: Okay, let us defer to Council in two (2) weeks.
Mr. Rapozo: That is fine.
Chair Furfaro: Would you make the motion?
Mr. Rapozo: If there is no more discussion.
Mr. Rapozo moved to defer C 2012-181, seconded by Mr. Kuali`i, and
unanimously carried.
C 2012-182 Communication (05/29/2012) from Mel Rapozo, Hawai`i State
Association of Counties (HSAC) President, requesting Council approval, pursuant to
Section 5 of the Bylaws of the Hawai`i State Association of Counties, Inc., of the
proposed slate of officers for Fiscal Year 2012-2013:
• Mel Rapozo (Kaua`i County Council), President
Jay Furfaro (Alternate)
• K. Angel Pilago (Hawai`i County Council), Vice President
Brittany Smart (Alternate)
• Joseph Pontanilla (Maui County Council), Treasurer
G. Riki Hokama (Alternate)
• Stanley Chang (Honolulu City Council), Secretary
Ikaika Anderson (Alternate): Mr. Kuali`i moved to
approve C 2012-182, seconded by Mr. Rapozo, and
unanimously carried.
C 2012-183 Communication (05/14/2012) from the Prosecuting Attorney,
requesting Council approval to apply for, receive, and expend an Edward J. Byrne
Memorial Justice Assistance Grant (JAG) FY 2012 Local Solicitation Grant in the
amount of $41,491.00, to be utilized to continue the employment of the Full-Time
Equivalent Process Server, as well as to provide training to the Kaua`i Police
Department, for the period commencing on October 1, 2012 through September 30,
COUNCIL MEETING 43 JUNE 13, 2012
2015: Mr. Bynum moved to approve C 2012-183, seconded by Mr. Kuali`i, and
unanimously carried.
C 2012-184 Communication (05/18/2012) from the Civil Defense Manager,
requesting Council approval to receive and expend National Oceanic Atmospheric
Administration (NOAA) funds not to exceed $30,000.00, authorized by CFDA
No. 11.467, NOAA Award NA5 — NA09NWS46700016, and are managed by their
sponsor, State of Hawai`i, Department of Defense, Civil Defense Division, to be
utilized for a "Kaua`i Tsunami Evacuation Signage" project: Mr. Kuali`i moved to
approve C 2012-184, seconded by Mr. Rapozo, and unanimously carried.
LEGAL DOCUMENT
C 2012-186 Communication (05/23/2012) from the Director, Parks & Recreation
Department, recommending Council approval of the following:
•Warranty Deed by Kaua`i Kai Associates conveying to the County
Lot B-2, Waipouli, Kawaihau, Kaua`i, Hawai`i, (TMK: 4-4-3-09:41),
for use as part of the Lydgate-Kapa'a Shared-Use Path, which
includes a utility easement executed between Kaua`i Kai and Kaua`i
Island Utility Cooperative.
•Land acquisition cost of approximately $18,551
($11,800 for Lot B-2 (455 SF), $6,200 for Easement U-1 (266 SF),
and $551 closing costs, including title insurance, escrow, and
fees): Mr. Bynum moved to approve C 2012-186, seconded by
Mr. Rapozo, and unanimously carried.
C 2012-187 Communication (05/30/2012) from Gary A. Mackler, Acting Housing
Director, recommending Council approval of the following:
•Grant of Easement by the County of Kaua`i conveying a Utility
Easement situate at Lot 47 (9661 Haina Road), Waimea, Kaua`i,
Hawai`i (TMK: (4) 1-2-00807) to Kaua`i Island Utility Cooperative
and Hawaiian Telcom, Inc., for utility purposes of the County's Lot
Development Program in Waimea: Mr. Bynum moved to approve
C 2012-187, seconded by Mr. Rapozo, and unanimously carried.
There being no objections, Mr. Bynum assumed Chairmanship of the meeting.
CLAIM:
C 2012-188 Communication (05/14/2012) from the Deputy County Clerk,
transmitting a claim filed against the County of Kaua`i by Martha Itamura for
damage to her personal property, pursuant to Section 23.06, Charter of the County
of Kaua`i: Mr. Kuali`i moved to refer C 2012-188 to the County Attorney's Office for
disposition and/or report back to the Council, seconded by Mr. Rapozo, and
unanimously carried.
C 2012-189 Communication (05/14/2012) from the Deputy County Clerk,
transmitting a claim filed against the County of Kaua`i by Kaua`i Akinaka &
Associates, LTD., for services rendered, pursuant to Section 23.06, Charter of the
County of Kaua`i: Mr. Kuali`i moved to refer C 2012-189 to the County Attorney's
Office for review, and schedule an Executive Session briefing with the Council prior
COUNCIL MEETING 44 JUNE 13, 2012
to disposition and report back to the Council, seconded by Mr. Chang, and
unanimously carried.
C 2012-190 Communication (05/14/2012) from the Deputy County Clerk,
transmitting a claim filed against the County of Kaua`i by Kevin Robert Campbell
for damage to his personal property, pursuant to Section 23.06, Charter of the
County of Kaua`i: Mr. Kuali`i moved to refer C 2012-190 to the County Attorney's
Office for disposition and/or report back to the Councile, seconded by Mr. Rapozo,
and unanimously carried.
C 2012-191 Communication (05/17/2012) from the Deputy County Clerk,
transmitting a claim filed against the County of Kaua`i by Waste Management of
Hawai`i for damage to their equipment, pursuant to Section 23.06, Charter of the
County of Kaua`i: Mr. Kuali`i moved to refer C 2012-191 to the County Attorney's
Office for review, and schedule an Executive Session briefing with the Council prior
to disposition and report back to the Council, seconded by Mr. Chang, and
unanimously carried.
Ms. Nakamura: I had similar concerns, and I think a briefing would
be appropriate.
C 2012-192 Communication (05/24/2012) from the Deputy County Clerk,
transmitting a claim filed against the County of Kauai by Waste Management of
Hawai`i for damage to their equipment, pursuant to Section 23.06, Charter of the
County of Kauai: Mr. Kuali`i moved to refer C 2012-192 to the County Attorney's
Office for review, and schedule an Executive Session briefing with the Council prior
to disposition and report back to the Council, seconded by Mr. Chang, and
unanimously carried.
Mr. Rapozo: Mr. Clerk, if you could make a note that
C 2012-189, C 2012-191, and C 2012-192, that those claims be referred to the
executive session at the next Council Meeting for briefing by the County Attorney?
And also, in the case of, well all of them involve Public Works and maybe Parks,
just so we can have the Department Heads available if we need them.
COMMITTEE REPORTS:
A report (No. CR-PSE 2012-04) submitted by the Public Safety &
Environmental Services Committee, recommending that the following be received
for the record:
"PSE 2012-02 Communication (05/25/2012) from Committee Chair
Rapozo, requesting the presence of the County Engineer to provide an update
on solid waste diversion and the potential alternative method of using
municipal solid waste shredding,"
Mr. Rapozo moved for approval of the report, seconded by Mr. Kuali`i, and
unanimously carried.
A report (No. CR-PSE 2012-05) submitted by the Public Safety &
Environmental Services Committee, recommending that the following be received
for the record:
COUNCIL MEETING 45 JUNE 13, 2012
"PSE 2012-03 Communication (05/25/2012) from Committee Chair
Rapozo, requesting the presence of the County Engineer to provide an update
and status regarding the recent sewage spillage affecting the Kalapaki Bay
area,"
Mr. Rapozo moved for approval of the report, seconded by Mr. Kuali`i, and
unanimously carried.
Mr. Bynum: Councilmember Yukimura.
Ms. Yukimura: I just want to say that Mr. Hoff s testimony earlier
this morning was about this committee report; I believe it is about the shredding
issue. I just want to make a factual correction to his testimony. He said that the
efforts to relocate and build and new landfill have gone through four (4) mayors,
which I think counts me. I want Mr. Hoff especially to know that in 1992 when we
experienced Hurricane Iniki, that greatly accelerated the need for a new landfill. By
1994 we did open a new landfill with twenty (20) years life. So as far as this Mayor
was concerned, we actually sited and built a landfill by 1994.
I also want to say that he proposed this gentlemen's agreement that would
come to the Council and Mayor for a vote and then a vote of the people. This would
violate County procurement laws, to say the least. It needs to be a competitive
process and it is just not possible legally under our rules to do.
Mr. Bynum: Mr. Rapozo.
Mr. Rapozo: Thank you. It was four (4) Mayors, JoAnn. You
were five (5) Mayors ago. You forget to count Kaipo. So Hoff is on it.
Ms. Yukimura: Thank you for the correction. That is right. I did
forget to count Kaipo.
Mr. Rapozo: The other clarification is what the newspaper
printed `Council Shelves Shredding' or something like that. I had received a few
calls and emails. It was never on the agenda for any action; it was just a briefing. So
to say that we shelved it is completely inaccurate. It was not a matter up for vote or
any kind of determination. I just wanted to put that clarification on the record.
Mr. Bynum: Any further discussion? Mr. Mickens.
GLENN MICKENS, RESIDENT: Thank you, Tim. I have been waiting
around all day for this. Thank you. You have a copy of this, of my testimony. Let me
please read it for the viewing public.
I believe that every Councilmember is in agreement that as Tim said, we are
in a crisis stage with disposing of our solid waste. Mr. Kaeo made an outstanding
presentation on how his company could, by shredding and compacting, extend the
life of our existing landfill. Though I am no math expert, the numbers and facts that
he presented to get his savings conclusion certainly appeared legitimate to me
anyway. Certainly as was pointed out by Councilmembers, there are other ways of
solving our solid waste problem rather than just by shredding. But, the MRF, as
JoAnn was pointing out and recycling solutions are projected to be in 2016 or
possibly longer. Whereas, the shredding method as outlined by Mr. Kaeo could start
immediately. We have spent years trying to site a new landfill and it appears that
we are still years away from finding that location. Thus, it is critical that we extend
COUNCIL MEETING 46 JUNE 13, 2012
the life of "Mount Trashmore" out there until we solve that problem. We are also
pumping $9 million a year into the solid waste program, and anything we can do to
lessen that tax burden would be a success. According to Mr. Kaeo, their shredder
would achieve eighteen hundred pounds per cubic yard (1,800 lbs/yd3), allowing the
landfill to survive forty-five percent to sixty percent (45%-60%) longer. His facts and
figures appear to back up what he says. This tractor would certainly be a huge plus
for keeping the landfill from filling up faster. Troy said that a shredder would
increase operational costs for the County — yes. Upfront this may be true, but each
day we keep the existing landfill open it means added revenue from tipping fees. I
would have to believe that this added revenue would far extend the cost of the
shredding. Remember also that 1) the debris from Japan will reach Kaua`i soon, and
that means more filling of that landfill; 2) an economy grows, as the economy grows
so does the amount of trash entering our landfill, which the economy seems to be on
the right track; and 3) more diversion means these added tipping fees help balance
the budget, and more funds are available to take care of the shredding or any other
methods we have.
I hope that Mr. Kaeo is back up here again soon. I believe, Jay, or Mel, I
think you put it to two (2) weeks you gave the Administration two (2) weeks was it
to come back with their figures? I did not hear them answer. I think the Garden
Island said his numbers were wrong, but I did not hear them come up with any
added numbers. If I am correct, then I think you said, Jay, that you would give the
Administration two (2) weeks to come back. Will this be on the agenda then in two
(2) weeks?
Chair Furfaro: In a minimum of two (2) weeks or it might be
before.
Mr. Mickens: Okay. That is my testimony, I appreciate it. Thank
you very much.
Mr. Bynum: Thank you, Mr. Mickens.
The meeting was called back to order, and proceeded as follows:
The motion for approval of the committee report was then put, and
unanimously carried.
Chair Furfaro: We are doing the communication from Mr. Rapozo
on the committee for the sewer spill? Is that where we are at?
Mr. Rapozo: Yes, that is where we are at.
Mr. Bynum: We just approved the committee reports.
Chair Furfaro: We completed that?
County Clerk: Yes, Sir.
Chair Furfaro: Mr. Clerk, I would like to go back to the top of the
item that we had, but before we do, I would like to ask the County Attorney to come
up, if I may. Al, could you come up please?
There being no objections, the rules were suspended.
ti
COUNCIL MEETING 47 JUNE 13, 2012
AL CASTILLO, JR., COUNTY ATTORNEY: Council Chair,
Councilmembers, good afternoon. Al Castillo, County Attorney.
Chair Furfaro: Thank you. I just want to check with you, before we
give the Prosecuting Attorney six (6) minutes which they have a presentation for, is
there any possibility that since you are processing special counsel that we should
defer this item until special counsel is available to the County Prosecutor?
Mr. Castillo: Yes. I just received advice from the Office of
Disciplinary Counsel. I had notified the Office of Disciplinary Counsel that
P.O.H.A.K.U. matters were on the agenda, that the Prosecutor and the First Deputy
from the Prosecutor's Office are here, and that they want to make a presentation. I
did notify the Office of Disciplinary Counsel that I am in the process of wrapping up
the negotiations with special counsel Gary Slovin. It is the recommendation of the
Office of Disciplinary Counsel a few moments ago that all matters that involve
P.O.H.A.K.U. will be deferred until such time that Mr. Slovin comes on board.
Chair Furfaro: But that choice is the Prosecutor's choice?
Mr. Castillo: That is the recommendation of ODC.
Chair Furfaro: Okay. Thank you. We will ask the Prosecutor's
Office to come up now. Jake, are you coming up? Good afternoon, Shay, I am sorry it
so late. I just wanted to check-in to see if you would like to exercise that option until
they have identified special counsel for you, and then defer this item for a week?
Ms. Iseri-Carvalho: We are prepared to proceed. I have some questions,
because on the break I had indicated to Mr. Castillo that we would want to call the
Office of Disciplinary Counsel. He informed me that he, Mr. Castillo informed me
that he was our attorney, he was here to represent us, we disputed that and
indicated that based on the April 20 revelation to the County Council that he had a
conflict that he was no longer our attorney, and we wanted to ensure that the Office
of Disciplinary Counsel had given him permission to represent us so that we could
discuss the matters that were left to discuss when you took a recess. We were
waiting there to discuss this matter with the Office of Disciplinary Counsel.
Mr. Castillo left the room and said he was returning, that he was finished giving us
any advice, and that he was returning back to this Office. In the meantime, he
returned back. As I asked him the reason for him leaving that we had not been able
to finish our conversation. The reason for him still being permitted to represent us,
he indicated he had a call despite the fact we were attempting to make numerous
calls to ODC, that he received a call or spoke to a representative from ODC. I asked
if he could call the ODC representative so we could have him as our counsel present
while we were present so we could have an open discussion with ODC as to their
recommendation. He refused to give me the name of the person he spoke to. He also
said that he was, and I told him we wanted to proceed with information that the
Council was, I am sure, interested in receiving. He indicated that he was going to
speak to you and ask you to remove the item from the agenda, despite the fact that
that advice was totally and adamantly opposed by our Office.
Chair Furfaro: Shay, that is as far as we need to go. I just want to
make sure that I pose the question to you before I give Jake the floor to make your
presentation. Do you wish me to defer this until such time that they have secured
legal representation for you?
COUNCIL MEETING 48 JUNE 13, 2012
Ms. Iseri-Carvalho: What we would want to do in light of the time,
because I also need to leave for another function, is that we have provided I believe
to the Council our presentation. So you are well aware of what we are going to
provide. It is an extensive presentation and in the time allotted we would not be
able to complete the presentation, therefore we are going to send over a request to
include the items that you have indicated were not posted items, so that we will be
free to provide all of the information to the County Council regarding the
P.O.H.A.K.U. Program. And so, in light of the time constraints...
Chair Furfaro: We are going to take a tape change so can you wrap
it up?
Ms. Iseri-Carvalho: Sure. So in light of the time constraints, we will be
forwarding over a request to include all of the items and do it in one (1)
presentation as supposed to taking it piecemeal.
Chair Furfaro: Thank you. We are going to go on a tape change
right now. We will stay in our seats. Shay, I have heard your answers, so I
understand where we are at.
Ms. Iseri-Carvalho: Okay.
Chair Furfaro: We are in a tape change.
There being no objections, the meeting recessed at 4:21 p.m.
The meeting reconvened at 4:25 p.m., and proceeded as follows:
C 2012-170 Communication (05/17/2012) from Councilmember Yukimura,
requesting Council approval of her request that the Board of Ethics conduct an .
investigation of whether violations of the Code of Ethics have occurred in connection
with the creation and operation of the P.O.H.A.K.U. Program and related matters.
Chair Furfaro: Members, we are back in session. I just want to
reconfirm what I am hearing. You are going to send me new correspondence for a
new posting, and you are going to hold any presentation for today.
There being no objections, the rules were suspended.
Ms. Iseri-Carvalho: Yes. So if ou would like to incorporate, well that is
Y p
11 different agenda item. I will just send you a new one (1).
a totally d g just y ( )
Chair Furfaro: I will just wait until I see what you have written to
me on the agenda item. I do want to again say that it is my role as well to make
sure that I am very clear on what your posting request will be. For right now this
item then, Clerk, will be deferred.
County Clerk: So noted.
Ms. Iseri-Carvalho: I am sorry...
Mr. Rapozo: I just had a question.
Chair Furfaro: You had a question? I am sorry.
COUNCIL MEETING 49 JUNE 13, 2012
Mr. Rapozo: You said that we had gotten a copy of your
presentation, is that the one (1) you passed out earlier?
Ms. Iseri-Carvalho: No. That was the ones that we were going to...
Mr. Rapozo: So is there another one (1)?
Ms. Iseri-Carvalho: There is another one (1).
Mr. Rapozo: And then there is this one (1) here, a letter.
Ms. Iseri-Carvalho: No. This one (1). This is the fifty (50) page
presentation, well twenty-seven (27) page but fifty (50) plus size.
Mr. Rapozo: You are going to turn that over today?
Chair Furfaro: Here is what I am requesting her to do so that we
are all clear — I will have consultation after I see what she is requesting to be
posted, and that material as I understand is your plan to make in that
presentation?
Ms. Iseri-Carvalho: That is correct, but this is public testimony so you
can receive this on the item.
Mr. Rapozo: I was not sure if I heard you correctly when you
said that you had passed out the presentation and that we all had it. I was not sure
if you were referencing this or this letter that we just got.
Ms. Iseri-Carvalho: There were two (2), so we have this one (1).
Mr. Rapozo: That is fine. I do not need to see it right now. The
other question is, so you did not speak to ODC?
Ms. Iseri-Carvalho: We were not able to. Our attorney left to go speak
to ODC according to his instructions. He did not tell us he was going to speak to
ODC...
Chair Furfaro: That is the end of that, that is the end of that. I
want to remind members here that whatever the outcome is here, we are all officers
of the it and County. We need to make sure that we have continuity y an we have done
things with the right kind of communication. I do not know if nobody was present in
that conversation, I look forward to her questions being posed to me for the next
posting.
Mr. Rapozo: Mr. Chair. The reason I ask is that when we were
waiting, I asked our staff what are we waiting for, and they said that the Prosecutor
was on the phone with ODC. And that is why I am asking, I just wanted to clarify,
and I understand you did not talk to them, I am good, thank you.
Ms. Iseri-Carvalho: Yes.
Chair Furfaro: Okay. Just so you are clarified, the communication
that I got was they were attempting to speak with ODC. That is why I extended the
recess three (3) times.
Ms. Iseri-Carvalho: We did not get that.
COUNCIL MEETING 50 JUNE 13, 2012
Chair Furfaro: It was posed that you were attempting to reach the
OD C.
Ms. Iseri-Carvalho: Can I explain that? We did not get a live body. And
so we got through the line and then we were not able to, we had to press several
buttons, and there was not a live body available to speak with us.
Chair Furfaro: Mr. Bynum.
Mr. Bynum: Should the Chair choose to post this agenda item
regarding P.O.H.A.K.U., are you going to entertain questions from
Councilmembers?
Ms. Iseri-Carvalho: I believe as I need to speak as I had been advised
by the County Attorney's Office for today, to speak with the special counsel that
they are attempting to secure, which is the only reason why we are deferring this
item.
Mr. Bynum: Thank you.
Chair Furfaro: And so, we are back to my opening statement that
there is some urgency for the County Attorney to secure that special counsel for you,
and we will wait for the outcome of that. But I also want to point out that it is my
understanding that Al is the County Attorney until such time that some special
counsel has been secured for, and we hope to make sure you are communicated of
that outcome as soon as possible.
Ms. Iseri-Carvalho: Yes. I believe, Council Chair, you had indicated
that there had been some securing of special counsel, but we have not gotten any
information with respect to any special counsel contacting us or who was contacted.
Chair Furfaro: When I got the email from Jake Delaplane today,
this morning, I made a query, and I was told that they are working on the contract,
verbiage, and housekeeping details of that contract. So that is what I was told.
Ms. Iseri-Carvalho: Okay. So nothing had been sent to us?
Chair Furfaro: No. I think that dialogue is still going on. They are
on the housekeeping verbiage of that contract, okay? Vice Chair Yukimura.
Ms. Yukimura: May I ask why you need special counsel before you
talk to us?
Ms. Iseri-Carvalho: Because we have been advised by our County
Attorney to seek the advice of special counsel.
Ms. Yukimura: But, do you need it for this presentation?
Chair Furfaro: That is fine with me, JoAnn. That answer is fine
with me.
Ms. Yukimura: Alright.
Chair Furfaro: I want to make sure you hear what I said again,
every Member of this Council body is an officer of this corporation known as the
County of Kaua`i. I want to make sure that we are moving with diligence in
COUNCIL MEETING 51 JUNE 13, 2012
reviewing issues about procurement and contract as those issues go. So on that
note, I am going to ask for a motion to defer.
There being no objections, the meeting was called back to order, and proceeded as
follows:
Mr. Chang moved to defer C 2012-170, seconded by Mr. Rapozo, and carried
by a vote of 6-1 (Ms. Yukimura voting no).
Chair Furfaro: A special note to the County Attorney that when I
get the request that have been made by the Prosecutor's Office, I would like to have
an urgent review before I make the next posting.
RESOLUTIONS:
Resolution No. 2012-22, Draft 1, RESOLUTION PROPOSING A CHARTER
AMENDMENT RELATING TO DEFINITIONS OF "SHALL," "MUST," AND "MAY"
Mr. Kuali`i: Mr. Chair?
Chair Furfaro: Yes?
Mr. Kuali`i: I was working with staff on some amendments, and
we do need a little more time. So I would like for a deferral. Staff has checked on the
time issues, and there are some other...
Chair Furfaro: Do we have another two (2) weeks that we can wait
on this? Is that correct? We do, Peter? Okay. Understood. So this would be a
deferral.
Mr. Kuali`i: Yes.
Chair Furfaro: That is what you are asking for? Vice Chair
Yukimura.
Ms. Yukimura: So, did we go through a first reading on this
already?
Chair Furfaro: Yes, we did.
Ms. Yukimura: We did. Okay. Very good. Thank Y Yg oo an you.
Chair Furfaro: Can I get a motion to defer this for two (2) weeks.
Mr. Kuali`i moved to defer Resolution No. 2012-22, Draft 1, seconded by
Mr. Chang, and unanimously carried.
COUNCIL MEETING 52 JUNE 13, 2012
Resolution No. 2012-41, RESOLUTION PROPOSING A CHARTER
AMENDMENT RELATING TO BUDGET PROCEDURES: Ms. Yukimura moved
for adoption of Resolution No. 2012-41 on second and final reading, seconded by
Mr. Rapozo.
Chair Furfaro: Is there any testimony? Seeing none, comments
from the Councilmembers? Vice Chair Yukimura.
Ms. Yukimura: Mr. Chair, I have an amendment as to the wording.
While it is being circulated, Mr. Chair, may I just say that it is an effort to make it
clear to the public what the choice is. I hope our wording gets closer than the
original language.
Chair Furfaro: So ou have the floor, g o ahead as it has been
Y
circulated.
Ms. Yukimura: I am proposing that the ballot form, or that the
ballot question be articulated as such — "shall the provisions be deleted that allow
the Mayor to submit essentially a second budget in the form of proposed
modifications to the annual budget after the Council is more than a month into
reviewing the first budget."
Chair Furfaro: Discussion, Members?
Ms. Yukimura moved to amend Resolution No. 2012-41 as circulated,
seconded by Mr. Bynum.
Chair Furfaro: Is there discussion on the amendment as
circulated?
Mr. Rapozo: I do.
Chair Furfaro: Go ahead, Mr. Rapozo.
Mr. Rapozo: I just like the original language better; I think it is
much cleaner and less confusing. That is just my opinion.
Ms. Yukimura: I appreciate your opinion. May I say something?
Chair Furfaro: You have the floor, go ahead.
Ms. Yukimura: Thank you. I thought so too, that originally that
would be good language. But then I realized that the public did not understand
what second chance meant, and what its implications were in the process of budget
setting. The fact that we were already moving on, I mean second chance — why not?
But that fact is that it comes after we are really into analyzing the first budget, and
then it throws us on an entirely new budget; we experienced it in this last session
after we have been going through a lot. This was an attempt to explain to the public
the implications of this and the need for this amendment. If there is better wording
I am open to it. But I think we should make it today somehow.
COUNCIL MEETING 53 JUNE 13, 2012
Mr. Rapozo: Mr. Chair?
Chair Furfaro: Yes?
Mr. Rapozo: The last sentence I guess after the comma, "after
the council...," if you take that out, then it is okay. Then it is straight to the point,
deleting the provision that allows the Mayor to submit a second budget in the form
of proposed modifications.
Ms. Yukimura: May I?
Chair Furfaro: Yes.
Ms. Yukimura: The thing is that that last phrase does explain to
people the implication. So let me try on the floor, if I may? "Shall the provisions be
deleted that allow the Mayor, after the Council is more than a month into reviewing
the first budget, to submit essentially a second budget." Would that be better?
Mr. Rapozo: I just do not see that the "more than a month" that
part, because he could submit the supplemental two (2) weeks after. It just says
that he has the ability to submit a supplemental.
Ms. Yukimura: We might need Jade's help here.
Mr. chance". Rapozo: I do not like the "second chance either in the first
language. I think "shall the provisions allowing the Mayor the authority to submit a
budget modification be deleted," to me that is straight to the point, something like
that. It is what it is, not too many people fully understand the budget process to
begin with.
Ms. Yukimura: Well, I like that simplicity, and the thing is that
the Mayor can, he can submit a communication any time, that is not a problem. The
problem has been that with these provisions that we are trying to delete, they have
been treated as a second budget.
Chair Furfaro: Jade, may I ask you to go up to the microphone.
Please introduce yourself. Just to give you an idea of what we are trying to do, and I
do not know why we did not take it in consideration — allowing the Mayor to submit
a revision to his budget after he submitted his original draft.
Ms. Yukimura: I think that is the implication.
There being no objections, the rules were suspended.
JADE FOUNTAIN-TANIGAWA, DEPUTY COUNTY CLERK: Jade
Tanigawa for the record.
Chair Furfaro: Jade, this question is dealing with the verbiage
that is allowing or not allowing the Mayor to submit a revision or reforecast to his
budget after he submitted his original draft. They are looking for the verbiage. Do
you have the amendment sheet there?
Deputy County Clerk: Yes, I do.
COUNCIL MEETING 54 JUNE 13, 2012
Chair Furfaro: Council Vice Chair Yukimura, you have the floor.
Ms. Yukimura: Jade, Councilmember Rapozo has suggested
simplifying the wording. We are trying to find a way to do that but still conveys to
the public the implications of deleting this amendment. Actually, Councilmember
Kuali`i just said if we can take out "more than a month" and just say "after the
Council is well into" that would work with me. But it still leaves us with a lot of
words. So Councilmember Rapozo suggested that we just delete the phrase at the
very end "after the Council is well into reviewing the first budget," if we remove
that then it will read "shall the provisions be deleted that allow the Mayor to
submit essentially a second budget in the form of proposed modifications to the
annual budget." Or, actually you had an even simpler one, Mel. You had it just
delete...
Mr. Rapozo: The quote "second budget" is not what it is. You can
construe it to be a second budget, but what it is is a budget modification, it is a
supplemental budget. I think we need to use those technical terms in the Charter
Amendment. We cannot be — Mel Rapozo (inaudible) a second budget — so let us put
him in quotes. I think it is a budget mod, that is what it is. If we want to delete
that, that is how I believe it should be worded — "Shall the provisions be deleted
that allow the Mayor to submit a budget modification after the initial submission of
the budget," something like that. That is it, we know what we are talking about.
Ms. Yukimura: I think that conveys to the public the problems
with it.
Mr. Rapozo: Neither does this — "the second budget" — the
average person on the street, hey do you know that the Mayor submits a second
budget — no.
Ms. Yukimura: The thing is that to submit a second budget when
the Council is still reviewing the first is what we wanted to convey.
Chair Furfaro: Let me say something here, in most companies you
submit a budget, anything after that is a revision. Do we want the Mayor to be able
to support a budget and then have the privilege of revising it as a second submittal?
That is what is causing the issue, so let us stay focused on...
Ms. Nakamura: I have a suggestion.
Ms. Yukimura: Go ahead.
Chair Furfaro: No, I think I will tell her when to go ahead. I think
I am still running the meeting.
Ms. Yukimura: I am sorry. Yes, you are.
Chair Furfaro: Did you get my point?
Ms. Yukimura: Yes.
Chair Furfaro: I thought it was pretty simple. You have the floor
Councilwoman. Please make a recommendation.
COUNCIL MEETING 55 JUNE 13, 2012
Ms. Nakamura: Here is a recommendation — "shall the provisions
allowing the Mayor to submit a budget revision well after the initial submission of
the budget be deleted."
Mr. Bynum: Delete it?
Ms. Nakamura: Be deleted, yes, that is right.
Ms. Yukimura: Mr. Chair?
Ms. Nakamura: Would you like me to repeat it again? "Shall the
provisions allowing the Mayor to submit a budget revision well after the initial
submission of the budget be deleted."
Chair Furfaro: Tres simple. Very simple, that is good.
Mr. Bynum: I second it.
Mr. Rapozo: Mr. Chair?
Chair Furfaro: We are still open to discussion, you have the floor,
Mr. Rapozo.
Mr. after"M . Ra ozo: Just the "well after I am just uncomfortable. It is
Rapozo: J
just "after." He has a March 15 submittal, anything after that whether J y g w it is "well
after," "shortly after," "soon after," "thereafter,"....
Chair Furfaro: The next day?
Mr. Rapozo: It does not matter.
Chair Furfaro: It does not matter.
Mr. Rapozo: What is "well after"? It is very subjective. I think
that it is very simple. We are trying to remove that ability to submit a revision to
that March 15 submittal.
Chair Furfaro: Councilmember Nakamura, would you read that
one more time please because it still has to go back and be modified in print before
we vote on it. Could you read that again?
Ms. Nakamura: "Shall the provision allowing the Mayor to submit a
budget revision after the initial submission of the budget be deleted."
Chair Furfaro: You are now using the word I gave you
earlier - revised, we are getting there. Jade, you have the floor, then Council Vice
Chair Yukimura.
Deputy County Clerk: There is one concern I would like to raise. Just the
fact that the Mayor at any time can submit amendments or revisions to the budget,
so maybe that language would not be very clear and maybe would be misconstrued
as he could not submit any amendments from this point forward; that would be my
concern.
COUNCIL MEETING 56 JUNE 13, 2012
Chair Furfaro: Mr. Bynum.
Deputy County Clerk: Just that the language would not be...
Mr. Bynum: May I ask Jade a question?
Chair Furfaro: Yes, go ahead, please.
Mr. Bynum: Jade, in the Charter now, what is the term that is
used for the budget modification?
Chair Furfaro: Supplemental.
Deputy County Clerk: Under Section 19.2 of the County Charter, 19.2(A),
it says "on or before May eighth of each year, the mayor may submit one
communication to the council which suggests modifications to the proposed annual
budget ordinance. The communication shall describe the mayor's suggested
modifications to the proposed annual budget and the reasoning justifying such
modifications. (B) On or before the date specified by the mayor, the head of each
county department...shall furnish the mayor with estimates..." and so forth.
But that is the specific language for the May 8 budget modification.
Mr. Bynum: What if the term rather than "revision" was "formal
budget modification"?
Deputy County Clerk: Budget modification...
Mr. Bynum: Or just "budget modification"?
Deputy County Clerk: Yes, "budget modification" would be sufficient for
me. I am not sure if that conveys Councilmember Yukimura's concern about the
timeliness and maybe the Council's need to start the budget process and that kind
of time crunch that we find ourselves in.
Chair Furfaro: Let us hear from Council Vice Chair Yukimura
then.
Ms. Yukimura: Yes. Thank you, Chair. The thing about the word
"budget revision" or "budget modification" is that most, unless people are familiar
with the budget process like, Chair, you are so familiar with the whole hotel budget
process, they do not understand the problem with coming in with modifications,
why not make some suggestions for modifications? That is the very reason why we
are proposing the deleting. Now the Mayor can always have communications with
suggestions or additional information that we need to know or whatever, but we
would not treat it like a budget modification where we would need five (5) votes to
everything he has modified. It would come down to whether we want to add it in or
not, whereas, I think that when he presents it to us it has a weight already and we
have to do that five (5) to add, four (4) to delete. So that was my concern, and I just
wanted to be able to have that be clear to the layperson that does not necessarily
know budget. I think Councilmember Nakamura's comes very close, we are getting
closer here.
Ms. Nakamura: I have another one (1).
COUNCIL MEETING 57 JUNE 13, 2012
Ms. Yukimura: You have another one (1)? Go ahead. I mean,
excuse me.
Chair Furfaro: Why not let me do that,at, how is that?
Ms. Yukimura: I am sorry.
Chair Furfaro: You have the floor.
Ms. Nakamura: "Shall the provisions allowing the Mayor to submit
a budget modification through a supplemental budget after the initial budget is
submitted be deleted."
Mr. Rapozo: Bingo.
Mr. Chang: Ditto.
Mr. Bynum: Could you read that again, please?
Ms. Nakamura: "Shall the provisions allowing the Mayor to submit
a budget modification through a supplemental budget after the initial budget is
submitted be deleted."
Chair Furfaro: I would like to say that if we are happy with that
piece, let us get it typed up, we will not act on it until we actually have the verbiage
in front of us.
Ms. Yukimura: Thank you.
Chair Furfaro: Staff, could you take Councilmember Nakamura's
verbiage, work it into a new piece, and may we come back to this, Rick? Let us go to
the next item while that is being worked on.
There being no objections, Resolution No. 2012-41 was moved to the end of the
agenda.
Resolution No. 2012-43, RESOLUTION CONFIRMING COUNCIL
APPOINTMENT TO THE KAUAI HISTORIC PRESERVATION REVIEW
COMMISSION (Stephen W Long): Mr. Bynum moved to approve Resolution
No. 2012-43, seconded by Mr. Chang.
Chair Furfaro: Any discussion, Members? Dickie.
Mr. Chang: I just want to thank Mr. Long for bringing his
wealth of knowledge in his travels to Kaua`i and volunteering. I think we all
remember his interview; it was extremely impressive. I just want to thank him
because he is going to be a big, big value for our community. He has seen a lot of
things and it is, I am just very happy that Mr. Long is volunteering his time and his
mana o to our County. Thank you.
Chair Furfaro: Any more comments before I call a roll call.
COUNCIL MEETING 58 JUNE 13, 2012
The motion to approve Resolution No. 2012-43 was then put, and carried by
the following vote:
FOR ADOPTION: Bynum, Chang, Kuali`i, Nakamura, Rapozo, TOTAL— 7,
Yukimura, Furfaro
AGAINST ADOPTION: None TOTAL— 0,
EXCUSED & NOT VOTING: None TOTAL— 0,
RECUSED & NOT VOTING: None TOTAL— 0.
Resolution No. 2012-44, RESOLUTION PROPOSING A CHARTER
AMENDMENT RELATING TO RESTRICTING THE MAYOR'S POWER OVER
DEPARTMENTS: Mr. Rapozo moved for passage of Resolution No. 2012-44 on first
reading, that it be ordered to print, that a public hearing thereon be scheduled for
June 27, 2012, and that it thereafter be referred to the July 11, 2012 Council
Meeting, seconded by Mr. Chang.
Chair Furfaro: Discussion? Mr. Bynum.
Mr. Bynum: Does part of this process send this to the County
Attorney for legal review?
Chair Furfaro: Yes. It will require this being sent over for
comments from the County Attorney.
Mr. Bynum: Thank you.
Chair Furfaro: Please so note that, Mr. Clerk. Vice Chair
Yukimura.
Ms. Yukimura: I want to say that I have some real reservations
because I think more than half of the cabinet is appointed by commissions, and to
have direct supervision by a lay board of commission, a lay board that meets only
monthly is very, very difficult operationally. Plus, it adds divisions into a body that
should be more or less cohesive. And so, I think this is a really major shift in
separation and delineation of powers under the Charter and needs at least a review
by the Charter Commission, and some really lengthy discussion. Lay boards have a
very limited accountability to the people of Kaua`i, and then they do not have the
day-to-day presence to oversee day-to-day operations.
Chair Furfaro: Where we are at right now, this will be going to the
County Attorney for comments. It will be going to public hearing for that discussion.
I think one (1) of the big points that we have is the Mayor is an ex-officio of the
Police Commission, Fire Commission, Plannin g Commission, and the fact of the
f Executive of the Corporation of
matter is the opportunity poses itself for the Chie ec p
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the County of Kauai to go to those Boards and Commissions of which he appoints
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h are confirmed by the Council, but he has the opportunity to
the Members, they Y Y � pp Y
express himself to those Boards and Commissions. The intent in those is obviously
to take the politics out of the work. I think that is dialog that needs to go on as
these things proceeds from first reading. I will reserve my comments until then as
well, Vice Chair Yukimura, I will reserve my comments until then. Mr. Rapozo.
Mr. Rapozo: Thank you. Mr. Chair, I will agree to some extent
with Councilmember Yukimura. But we have to remember that our Boards and
COUNCIL MEETING 59 JUNE 13, 2012
Commissions come under a Department, a Charter mandated Department that we
spend a lot of money on. That function of the Boards and Commissions Office is
supposed to be training our Commissioners. If in fact they are just there as lay
people, then we do not need the Commissions, really; that is my point. The
Commissions are there for a purpose, it is unfortunate that in the last few months
we have seen their powers or attempt anyway to remove their authorities. This just
clarifies what I think most people believe, that the Commissions will oversee the
Department Heads; that is all this does. We will have the dialog, Sir, I am sure I
will get a County Attorney's opinion that will say we cannot do it, but I think we let
the voters decide on this one (1). Thank you.
Chair Furfaro: Members, again this is first reading. Is there any
more dialog before I call for a roll call vote? Mr. Bynum.
Mr. Bynum: I think this is a very fundamental change and
important. But there is an issue that we need to address by one (1) manner or
another, and there may be other ways, and I think we will probably have a robust
discussion about that. But, with this many County employees that are covered
under Commissions or elected people, there are still Civil Service rules, there are
still things that happen daily. And so, I certainly am going to keep an open mind. I
know there is an issue, I think I will have to be convinced the Charter is the right
place to address it. The reason I am discussing this at all at first reading is because
we are under a time constraint to get this on the ballot, and because we need to
have that kind of discussion. If that fuels people in the community to think about it
who can give input at the public hearing, that will be helpful. I have been thinking
about we needed clear memorandums of agreement about how the Mayor will
interact with commissions when personnel issues arise, that kind of thing, to make
sure that the Commissions are not removed from the process, but at the same time
sometimes there is a need for an administrator of the County, and the Charter says
the Mayor is the Administrator, to move quickly to avoid liabilities and having
things escalate. Maybe the Charter is the right way to do that, but I hope we have a
discussion about other options that are available to us because there clearly is a
problem; but is the Charter the only way to deal with it. I am not clear on that yet.
And so, I will certainly be giving my time and attention to this proposal so we can
discuss it more robustly. I will be supporting it on first reading today to get that
process under way.
Chair Furfaro: Any more discussion before I call a roll call vote.
Council Vice Chair.
Ms. Yukimura: While I have deep reservations about this I am
going to be voting on first reading to pass it, because I do think that will move us
toward more community discussion. I do think as Councilmember Bynum has said,
that we do need to have discussions on this issue.
Chair Furfaro: Councilmember Nakamura.
Ms. Nakamura: I am also concerned about the parallel tract which
is the special counsel that has been retained by the Police Commission to also
address this issue. I am just, I think I would like to have further dialog about the
timing of that process and this process.
Chair Furfaro: Any further discussion? Is there any testimony
from the public?
COUNCIL MEETING 60 JUNE 13, 2012
The motion for passage of Resolution No. 2012-44 on first reading, that it be
ordered to print, that a public hearing thereon be scheduled for June 27, 2012, and
that it thereafter be referred to the July 11, 2012 Council Meeting was then put,
and carried by the following vote:
FOR PASSAGE: Bynum, Chang, Kuali`i, Nakamura, Rapozo, TOTAL— 7,
Yukimura, Furfaro
AGAINST PASSAGE: None TOTAL— 0,
EXCUSED & NOT VOTING: None TOTAL — 0.
RECUSED & NOT VOTING: None TOTAL— 0.
Resolution No. 2012-45, RESOLUTION PROPOSING A CHARTER
AMENDMENT RELATING TO ADDITIONAL DUTIES OF THE COUNTY
AUDITOR: Mr. Bynum moved for passage of Resolution No. 2012-45 on first
reading, that it be ordered to print, that a public hearing thereon be scheduled for
June 27, 2012, and that it thereafter be referred to the July 11, 2012 Council
Meeting, seconded by Ms. Yukimura.
Chair Furfaro: This is my particular resolution. I want to let you
know...yes? We need to ask through process to have our County Auditor be able,
when the Financial Reports come out, because we just got two (2) now for April and
May, the reality is we need to be able to see a reconciliation of the key accounts and
where they stand compared to their budget. This would allow the County Auditor to
have access to the financial statement for the month in the month, and be able to
present some kind of comparison to the Council on how our expenses are running
against our budget, and how our trends are running against our forecast. I think
the scope of this could be expanded to be in the Auditor's Department. As many of
you know I currently do the month ends myself, but I think this is certainly
something that the County Auditor can participate in for us. This is again first
reading right. Thank you. Mr. Bynum.
Mr. Bynum: I want to thank the Chair for putting this on the
agenda because the way it is framed is that it authorizes the Auditor to have other
duties, but it requires the Council to pass a resolution. The County Auditor's Office
was a relatively new creation by the voters through a Charter Amendment, and
there are some real talented folks over there including a CPA and people with
and legal backgrounds. And so, to have that Office, which is an
strong business ,
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expense to the County, provide some other duties that are consistent with their
Yellow Book and the standards for audits could be an opportunity for us. Thank
you.
Chair Furfaro: Any more testimony? Roll call please.
The motion for passage of Resolution No. 2012-45 on first reading, that it be
ordered to print, that a public hearing thereon be scheduled for June 27, 2012, and
that it thereafter be referred to the July 11, 2012 Council Meeting was then put,
and carried by the following vote:
COUNCIL MEETING 61 JUNE 13, 2012
FOR PASSAGE: Bynum, Chang, Kuali`i, Nakamura, Rapozo, TOTAL— 7,
Yukimura, Furfaro
AGAINST PASSAGE: None TOTAL— 0,
EXCUSED & NOT VOTING: None TOTAL — 0.
RECUSED & NOT VOTING: None TOTAL— 0.
Resolution No. 2012-46, RESOLUTION PROPOSING A CHARTER
AMENDMENT RELATING TO THE PREPARATION OF MONTHLY FINANCIAL
STATEMENTS BY THE DIRECTOR OF FINANCE: Mr. Kuali`i moved for passage
of Resolution No. 2012-46 on first reading, that it be ordered to print, that a public
hearing thereon be scheduled for June 27, 2012, and that it thereafter be referred to
the July 11, 2012 Council Meeting, seconded by Mr. Chang, and carried by the
following vote:
FOR PASSAGE: Bynum, Chang, Kuali`i, Nakamura, Rapozo, TOTAL— 7,
Yukimura, Furfaro
AGAINST PASSAGE: None TOTAL — 0,
EXCUSED & NOT VOTING: None TOTAL — 0.
RECUSED & NOT VOTING: None TOTAL— 0.
BILLS FOR FIRST READING:
Proposed Draft Bill (No. 2438) —A BILL FOR AN ORDINANCE TO AMEND
CHAPTER 3 OF THE KAUAI COUNTY CODE 1987, AS AMENDED, RELATING
TO THE REPRESENTATION OF CLIENTS WITH CONFLICTING INTERESTS
BY THE OFFICE OF THE COUNTY ATTORNEY: Mr. Chang moved for passage of
Proposed Draft Bill (No. 2438) on first reading, that it be ordered to print, that a
public hearing thereon be scheduled for July 11, 2012, and that it thereafter be
referred to the Committee of the Whole, seconded by Mr. Bynum.
Ms. Yukimura: Mr. Chair.
Chair Furfaro: Yes?
Ms. Yukimura: I do not have a copy of that bill.
Chair Furfaro: We do not have a copy of the bill?
Ms. Yukimura: It is not attached to the agenda, or mine anyway.
Does anybody else have one (1)?
Chair Furfaro: We are looking for a copy of the bill, and again this
is a bill coming from me. I think this is my attempt to deal with the challenges that
we have with the County Attorney's Office at the times when the County Attorney's
Office is trying to represent two (2) Departments that have conflicting interest. I
think giving the Council that ability and being willing to understand that it is just
not for the Council, this could be for other Departments that you could approve
money when there is an opinion challenged by another Department. That would
allow the County, Council, the Departments to have an opinion especially when we
are dealing with something that is challenged between Planning and Housing.
Ms. Yukimura: Mr. Chair.
COUNCIL MEETING 62 JUNE 13, 2012
Chair Furfaro: Yes.
Ms. Yukimura: I am told that it is attached to the communication,
so it is not at the end.
Chair Furfaro: Okay.
Ms. Yukimura: It is attached to Communication 2012-177. Is that
how we always do first reading?
Chair Furfaro: I would appreciate it if you would have let me
finish my presentation before...
Ms. Yukimura: I am sorry, I thought you were done.
Chair Furfaro: No, I just speak slow, it comes with being
sixty-three (63) years old.
Ms. Yukimura: I am sorry.
Chair Furfaro: I will give you the floor now. That is the main
purpose of why I am introducing this. I will leave it at that. You have the floor.
Ms. Yukimura: I apologize.
Chair Furfaro: Apology accepted.
Ms. Yukimura: Thank you. The bill is attached to the
Communication 2012-177. Is that how we always do...Communication 2012-178, I
am sorry.
Chair Furfaro: I think we are consistent with our practice in the
past, but if you want to revisit that as an operational issue with the Clerk, we can
do that.
Ms. Yukimura: No, I will just stand informed. Thank you.
Chair Furfaro: This is for first reading. If there is no further
discussion...Mr. Bynum.
Mr. Bynum: I am sorry, just for the benefit of the public, it has
been pretty standard practice by the Council to approve bills on first reading, to get
them into the process, and get a full dialog to occur. That means there is public
hearing, that it becomes a public document, but I have not personally really studied
this bill yet. I am going to vote for it because it gets it in the process. It is often the
case where members vote at first reading may not be indicative of their vote after
all of the discussion, so I just wanted to do that disclaimer.
Chair Furfaro: And again just for the Council's note, this is why I
voted silent on an item for dealing with the Mayor's restrictions, because I do feel
another approach is when there is conflicts between Departments. That is why my
vote was silent on number 4. Any further discussion?
COUNCIL MEETING 63 JUNE 13, 2012
The motion for passage of Proposed Draft Bill (No. 2438) on first reading,
that it be ordered to print, that a public hearing thereon be scheduled for July 11,
2012, and that it thereafter be referred to the Committee of the Whole was then
put, and carried by the following vote:
FOR PASSAGE: Bynum, Chang, Kuali`i, Nakamura, Rapozo, TOTAL— 7,
Yukimura, Furfaro
AGAINST PASSAGE: None TOTAL — 0,
EXCUSED & NOT VOTING: None TOTAL— 0.
RECUSED & NOT VOTING: None TOTAL— 0.
Resolution No. 2012-41, RESOLUTION PROPOSING A CHARTER
AMENDMENT RELATING TO BUDGET PROCEDURES (continued)
Chair Furfaro: Council Vice Chair Yukimura, I will recognize you
with this verbiage here.
Ms. Yukimura: I believe the main motion is pending with my
proposed amendment, and I will withdraw my amendment to allow Councilmember
Nakamura to propose hers.
Ms. Yukimura withdrew her motion to amend, Mr. Bynum withdrew his
second.
Chair Furfaro: Councilmember Nakamura, you have an
opportunity to review this amendment.
Ms. Nakamura: I would like to ro ose this floor amendment
p p as
circulated. The language basically says "shall the provisions allowing the Mayor to
submit a budget modification through a "supplemental budget communication" after
the initial budget is submitted be deleted."
Ms. Nakamura moved to amend Resolution No. 2012-41 as circulated,
seconded by Mr. Bynum.
Chair Furfaro: Any discussion from other Members? You have a
question, Council Vice Chair?
Ms. Yukimura: Yes, I am just wondering about the commas. "Shall
the provisions allowing the Mayor to submit a budget modification through a
supplemental budget communication after the initial budget is submitted be
deleted." How about, "shall the provisions be deleted allowing the Mayor..."
Chair Furfaro: You know what I am going to do?
Ms. Yukimura: Yes?
Chair Furfaro: I am going to take a recess.
Ms. Yukimura: Okay. Thank you.
Chair Furfaro: See if you folks can massage this one. We will take
a caption break.
COUNCIL MEETING 64 JUNE 13, 2012
There being no objections, the meeting recessed at 5:06 p.m.
The meeting reconvened at 5:38 p.m., and proceeded as follows:
Chair Furfaro: We are back from having a revision on the
narrative for the amendment, the floor resolution, the amendment on Resolution
No. 2012-41. I will recognize Councilmember Nakamura.
By unanimous consent, the previous motion and second to amend the resolution
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were withdrawn.
Ms. Nakamura: I would like to propose this floor amendment as
circulated. It reads, "shall the rovisions be deleted that allow the after
p Mayor,
submitting the proposed annual budget, to submit budget modifications before the
Council adopts the annual budget."
Ms. Nakamura moved to amend Resolution No. 2012-41 as circulated,
seconded by Mr. Chang, and unanimously carried.
The motion for adoption of Resolution No. 2012-41, as amended herein to
Resolution No. 2012-41, Draft 1, was then put.
Chair Furfaro: Councilmember Yukimura.
Ms. Yukimura: I just want to say Mahalo to Councilmember
Nakamura and staff to arrive at the wording.
Chair Furfaro: Staff, I am going to let you know it has got a little
star up there in the corner, thank you very much.
The motion for adoption of Resolution No. 2012-41, as amended herein to
Resolution No. 2012-41, Draft 1, on second and final reading was then put, and
carried by the following vote:
FOR PASSAGE: Bynum, Chang, Kuali`i, Nakamura, Rapozo, TOTAL— 7,
Yukimura, Furfaro
AGAINST PASSAGE: None TOTAL— 0,
EXCUSED & NOT VOTING: None TOTAL— 0.
RECUSED & NOT VOTING: None TOTAL— 0.
Chair Furfaro: This brings us, do we have a County Attorney
present? Al, this is going to bring us to ES-551, and then we will have to come back
to session here.
There being no objections, the rules were suspended.
Mr. Castillo: Council Chair, Councilmembers, good afternoon,
County Attorney, Al Castillo. The next matter for your consideration is ES-551.
EXECUTIVE SESSION:
ES-551 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, at the request of the
Kaua`i Police Department, requests an executive session with the Council to provide
COUNCIL MEETING 65 JUNE 13, 2012
the Council with a briefing on the retention of special counsel to advise and
represent the Kaua`i Police Department with regard to the Kaua`i Police
Department's Administrative Review Board, Case Number NDA-12-06, 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.
There being no objections, the meeting was called back to order, and
proceeded as follows:
Mr. Rapozo moved to convene in executive session for ES-551, seconded by
Mr.Chang, and carried by the following vote:
FOR CONVENING IN EXECUTIVE SESSION: Bynum, Chang,
Kuali`i, Nakamura, Rapozo, Yukimura, Furfaro TOTAL— 7,
AGAINST CONVENING IN EXECUTIVE SESSION: None TOTAL— 0,
EXCUSED & NOT VOTING: None TOTAL— 0,
RECUSED & NOT VOTING: None TOTAL — 0.
Chair Furfaro: For those in the audience, we will be going into
executive session, then we will be coming out to complete this item in public. We are
going to go into executive session, and may I ask for your diligence to go directly to
the executive chambers. We have a Councilmember leaving us at 6:00 p.m. for an
excused travel purpose.
There being no objections, the meeting recessed at 5:41 p.m.
The meeting reconvened at 6:26 p.m., and proceeded as follows:
(Ms. Yukimura was noted as excused.)
Chair Furfaro: Mr. Clerk, we are out of executive session.
C 2012-185 Request (06/07/2012) from the Office of the County Attorney, at
the request of the Kaua`i Police Department, for approval to expend funds up to
$10,000.00 to retain special counsel to advise and represent the Kaua`i Police
Department with regard to the Kauai Police Department's Administrative Review
Board, Case Number NDA-12-06, and related matters: Mr. Kuali`i moved to approve
C 2012-85, seconded by Mr. Chang.
Chair Furfaro: And discussion, Members?
Mr. Rapozo: Mr. Chair?
Chair Furfaro: Go ahead, you have the floor.
Mr. Rapozo: I am going to be supporting this obviously. We had
a discussion in executive session. I do want to say that once special counsel is,
should this pass, once special counsel is obtained, that the Council be briefed as well
at that time, which we typically do anyway. I just wanted to make that request for
the record. Thank you.
Chair Furfaro: Any other discussion. If not, can I have a roll call
vote.
COUNCIL MEETING 66 JUNE 13, 2012
The motion to approve C 2012-85 was then put, and carried by the following
vote:
FOR APPROVAL: Bynum, Chang, Kuali`i, Nakamura, Rapozo, TOTAL— 6,
Furfaro
AGAINST APPROVAL: None TOTAL— 0,
EXCUSED & NOT VOTING: Yukimura TOTAL— 1.
RECUSED & NOT VOTING: None TOTAL— 0.
ADJOURNMENT.
There being no further business, the meeting was adjourned at 6:28 p.m.
Respectfully submitted,
Ricky Watanabe
County Clerk
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