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HomeMy WebLinkAbout07-28-2010-Doc15833 • COUNCIL MEETING July 28, 2010 The Council Meeting of the Council of the County of Kauai was called to order by the Council Chair at the Council Chambers, 3371-A Wilcox Road, Lihu`e, Kauai, on Wednesday, July 28, 2010 at 10:33 a.m., after which the following members answered the call of the roll: Honorable Tim Bynum Honorable Dickie Chang Honorable Jay Furfaro Honorable Daryl W. Kaneshiro Honorable Lani T. Kawahara Honorable Derek S.K. Kawakami Honorable Bill "Kaipo" Asing, Council Chair PETER A. NAKAMURA, County Clerk: First matter is approval of the agenda. APPROVAL OF AGENDA: Mr. Furfaro moved for approval of the agenda as circulated, seconded by Mr. Chang, and unanimously carried. Chair Asing: Next item please. Mr. Nakamura: Next matter is approval of the Minutes of the following meetings of the Council. MINUTES of the following meetings of the Council: Special Council Meeting of July 7, 2010 Public Hearing of July 14, 2010 re: Bill No. 2365 Mr. Bynum moved for approval of the minutes as circulated, seconded by Mr. Kaneshiro, and unanimously carried. Chair Asing: Next item please. Mr. Nakamura: Next matters are Communications for receipt on page one of the council's agenda, communication C 2010-198, C 2010-199, and C 2010-200. I'm sorry, Council Chair, correction. For receipt is just communication C 2010-198 and 200. COMMUNICATIONS: C 2010-198 Communication (07/09/2010) from the Council Chair, transmitting for Council consideration the following Council appointees: • David Helder -Kauai Historic Preservation Review Commission • Maurice Nakahara -Public Access, Open Space, Natural Resources Preservation Fund Commission Mr. Chang moved to receive C 2010-98 for the record, seconded by Mr. Kaneshiro, and unanimously carried. COUNCIL MEETING ~ - 2 - ~ July 28, 2010 C 2010-200 Communication (07/22/2010) from the Director of Finance, transmitting for Council consideration, a $70,000.00 appropriation from the surplus and appropriations estimated in the General Fund for additional matching funding for the Hanapepe Walkway and Bridge Improvement Project: Mr. Chang moved to receive C 2010-200 for the record, seconded by Mr. Kaneshiro, and unanimously carried. Chair Asing: Next item please. Mr. Nakamura: Next matter is a communication for approval on page one of the council's agenda, communication C 2010-199. C 2010-199 Communication (07/06/2010) from the Prosecuting Attorney, requesting Council approval to apply for, receive, and expend $40,854.00 from the Edward J. Byrne Memorial Justice Assistance Grant, FY 2010 Local Solicitation Subpoena Services Grant, to contract with a private company to provide a) process serving for the Office of the Prosecuting Attorney, and b) training to the Kauai Police Department, commencing October 1, 2010 through September 30, 2013: Mr. Furfaro moved to approve C 2010-199, seconded by Mr. Chang, and unanimously carried. Chair Asing: Next item please. Mr. Nakamura: Next matters on page two of the council's agenda, communications for receipt, communication C 2010-201, C 2010-202, C 2010-203, C 2010-204, C 2010-205, and C 2010-206. C 2010-201 Communication (07/22/2010) from the Director of Finance, transmitting for Council consideration, a $76,000.00 appropriation from the surplus and appropriations estimated in the General Fund to support the Solid Waste Fund (automated refuse software, maintenance, and support and training): Mr. Chang moved to receive C 2010-201 for the record, seconded by Mr. Kaneshiro. C 2010-202 Communication (07/22/2010) from the Director of Finance, transmitting for Council consideration, a $400,000.00 appropriation from the surplus and appropriations estimated in the CIP Project Contingency for equipment costs paid for the Historic County Building Renovation project: Mr. Chang moved to receive C 2010-202 for the record, seconded by Mr. Kaneshiro. C 2010-203 Communication (07/22/2010) from the Director of Finance, transmitting for Council consideration, a $822, 391.00 appropriation to the Solid Waste Fund and $603,121.00 to the Sewer Fund from the surplus and appropriations estimated in the General Fund for debt service costs as a result of the County's 2010 Bond Issuance: Mr. Chang moved to receive C 2010-203 for the record, seconded by Mr. Kaneshiro. C 2010-204 Communication (07/01/2010) from the County Engineer, requesting Council consideration to amend the FY 2010-2011 Operating Budget by appropriating $200,000.00 from the surplus and appropriations estimated in the General Fund for the construction of a replacement sewer line at the intersection of Waialo Road and Kaumuali`i Highway: Mr. Chang moved to receive C 2010-204 for the record, seconded by Mr. Kaneshiro. COUNCIL MEETING • - 3 - • July 28, 2010 C 2010-205 Communication (07/22/2010) from Councilmember Furfaro, transmitting for Council consideration, a $95,000.00 appropriation from the surplus and appropriations estimated in the General Fund for unanticipated costs to restart the Kekaha Host Community Benefits Program Citizens' Advisory Committee process: Mr. Chang moved to receive C 2010-205 for the record, seconded by Mr. Kaneshiro. C 2010-206 Communication (07/22/2010) from Councilmember Kawakami, transmitting for Council consideration, a proposal to amend the FY 2010-2011 operating budget provisos to authorize the Director of Finance to utilize the accrued interest from the Kekaha Host Community Benefits (HCB) account for the Kekaha HCB grant program: Mr. Chang moved to receive C 2010-206 for the record, seconded by Mr. Kaneshiro. Chair Asing: Any discussion? Hang on, please. I'd like to suspend the rules. Mr. Taylor. There being no objection, the rules were suspended. KEN TAYLOR: Chair and members of the council, my name is Ken Taylor. The concern I have here with all of this, here we are not even a month into the new year and we're already having to dip into surplus for all these issues. Now, my question is why, when we just went through a couple months ago the budget hearings, why all of a sudden some round numbers here about $2 million that just are now coming up and why weren't these issues dealt with during the budget hearings? Thank you. Chair Asing: Thank you. Is there anyone else who wants to speak on any of the items mentioned? If not, I'd like to call the meeting back to order. There being no else wishing to speak, the meeting was called back to order, and proceeded as follows: Chair Asing: We have a motion on the floor to receive these items. Any further discussion? All, those in favor, say aye. The motion to receive C 2010-201, C 2010-202, C 2010-203, C 2010-204, C 2010-205, and C 2010-206 for the record was then put, and unanimously carried. Chair Asing: Next item please. Mr. Nakamura: On page three of the council's agenda are legal documents for approval. First legal document is attached to communication C 2010- 207. LEGAL DOCUMENTS: C 2010-207 Communication (07/09/2010) from the Executive on Aging, requesting Council approval to indemnify the Kapa`a United Church of Christ for use of their social hall for the EnhanceFitness program for seniors 60 years and older, as follows: • Indemnification Agreement (to protect the Church and its Agents from incurring any monetary or property losses resulting from allowing others to use the Church facilities). COUNCIL MEETING • - 4 - • July 28, 2010 Mr. Bynum moved to approve the legal document attached to communication C 2010-207, seconded by Mr. Kaneshiro, and unanimously carried. Chair Asing: Next item please. Mr. Nakamura: Next legal document for approval is attached to communication C 2010-208. C 2010-208 Communication (07/14/2010) from the Director, Department of Parks & Recreation, recommending Council approval to establish the terms of purchase pending final subdivision of the parcel and transfer of title for the Lydgate-Kapa`a Shared-Use Path, as follows: • Purchase Agreement between the County of Kauai, through its Department of Public Works, and the Apartment Owners of Kapa`a Sands, for approximately 2,134 square feet of land (TMK (4) 4-3- 02:02). Mr. Bynum moved to approve the legal document attached to communication C 2010-208, seconded by Mr. Kaneshiro, and unanimously carried. Chair Asing: Mr. Nakamura: communication C 2010-209. CLAIM: Next item please. Next matters are Claims. The claim is C 2010-209 Communication (07/13/2010) from the County Clerk, transmitting a claim filed against the County of Kauai by Guy Ruiz for damage to his vehicle, pursuant to Section 23.06, Charter of the County of Kauai: Mr. Furfaro moved to refer C 2010-209 to the County Attorney's Office for disposition and/or report back to the Council, seconded by Mr. Bynum, and unanimously carried. Chair Asing: Next item please. Mr. Nakamura: Next matters for approval are Committee Reports, from your Committee on Planning, Committee Report CR-PL 2010-13. COMMITTEE REPORTS: A report (No. CR-PL 2010-13) submitted by the Planning Committee, recommending that the following be approved as amended: "Bill No. 2364 - A BILL FOR AN ORDINANCE TO AMEND CHAPTER 8, KAUAI COUNTY CODE 1987, AS AMENDED, RELATING TO THE COMPREHENSIVE ZONING ORDINANCE (Transient Vacation Rentals)," Mr. Kaneshiro moved for approval of the report, seconded by Mr. Furfaro, and unanimously carried. (See later for Bill No. 2364, Draft 1) Chair Asing: Next item please. Mr. Nakamura: From your Committee on Public Works/Elderly Affairs, Committee Report CR-PWE 2010-09. COUNCIL MEETING • - 5 - • July 28, 2010 A report (No. CR-PWE 2010-09) submitted by the Public Works/Elderly Affairs Committee, recommending that the following be approved: "Bill No. 2365 - A BILL FOR AN ORDINANCE AMENDING SECTION 21-1.3, SECTION 21-2.1, SECTION 21-2.2, SECTION 21-3.2, SECTION 21-3.3, SECTION 21-7.3, AND SECTION 21-9.1 OF THE KAUAI COUNTY CODE 1987, RELATING TO INTEGRATED SOLID WASTE MANAGEMENT," Mr. Kaneshiro moved for approval of the report, seconded by Mr. Furfaro, and unanimously carried. (See later for Bill No. 2365) Chair Asing: Next item please. Mr. Nakamura: Next matters for approval on page four of the council's agenda are Resolutions. First resolution is Resolution 2010-42. RESOLUTIONS: Resolution No. 2010-42, RESOLUTION CONFIRMING COUNCIL APPOINTMENT TO THE KAUAI HISTORIC PRESERVATION REVIEW COMMISSION (David Ernest Helder, Architecture History, term ending 12/31/2012): Mr. Furfaro moved to adopt Resolution 2010-42, seconded by Mr. Chang, and carried by the following vote: FOR ADOPTION: Bynum, Chang, Furfaro, Kaneshiro, Kawahara, Kawakami, Asing TOTAL - 7, AGAINST ADOPTION: None TOTAL - 0, EXCUSED & NOT VOTING: None TOTAL = 0. Chair Asing: Next item please. Mr. Nakamura: Last resolution for approval is Resolution No. 2010-43. Resolution No. 2010-43, RESOLUTION CONFIRMING COUNCIL APPOINTMENT TO THE PUBLIC ACCESS, OPEN SPACES, NATURAL RESOURCES PRESERVATION FUND COMMISSION (Maurice Shizuo Nakahara, At-Large, term ending 05/01/2011): Mr. Furfaro moved to adopt Resolution 2010-43, seconded by Mr. Chang. Chair Asing: Any discussion? If not, roll call please. Mr. Nakamura: Councilmembers Bynum... Chair Asing: Hang on. Before we have the roll call, I just want to thank both David Helder and Maurice Nakahara for their willingness to serve, especially in a volunteer position to be very helpful to the community. So I'd like to just thank them very much for stepping up. With that, can I have the roll call please. COUNCIL MEETING • - 6 - • July 28, 2010 The motion to adopt Resolution No. 2010-43 was then put, and carried by the following vote: FOR ADOPTION: Bynum, Chang, Furfaro, Kaneshiro, Kawahara, Kawakami, Asing TOTAL - 7, AGAINST ADOPTION: None TOTAL - 0, EXCUSED & NOT VOTING: None TOTAL - 0. Chair Asing: Next item please. Mr. Nakamura: Next matters on page four of the council's agenda are Bills for First Reading. First bill for first reading is Proposed Draft Bill (No. 2369). BILLS FOR FIRST READING: Proposed Draft Bill (No. 2369) - AN ORDINANCE AMENDING ORDINANCE NO. B-2010-706 AS AMENDED, RELATING TO THE CAPITAL BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII, FOR THE FISCAL YEAR JULY 1, 2010 THROUGH JUNE 30, 2011, BY REVISING THE SURPLUS AND APPROPRIATIONS ESTIMATED IN THE GENERAL FUND ($70,000.00 - Hanapepe Bridge Pedestrian Walkway Repairs) Mr. Furfaro: Excuse, Mr. Chair, I was just glancing over the audience to see if somebody is here from administration or finance as we go into the next sequence. Is there anybody here? Mr. Heu? Wally Rezentes? Chair Asing: No, we're going to take a five-minute recess because we're going to look for the administration. Mr. Furfaro: Okay. Chair Asing: I believe they're around but evidently not in the audience right now. So we're going to take afive-minute recess. There being no objection, the meeting was recessed at 10:42 a.m. The meeting was called back to order at 10:51 a.m., and proceeded as follows: Chair Asing: Mr. Clerk. The meeting is now called back to order. With that, Mr. Nakamura: Council Chair, we're on page four of the council's agenda on bills for first reading. First bill for first reading is Proposed Draft Bill (No. 2369), which is an ordinance amending Ordinance No. B-2010-706, as amended, relating to the capital budget of the County of Kauai, State of Hawaii, for the fiscal year July 1, 2010 through June 30, 2011, by revising the surplus and appropriations estimated in the general fund ($70,000.00 - Hanapepe Bridge Pedestrian Walkway Repairs). Chair Asing: Thank you. Can I have a motion? Mr. Bynum: Move to approve on first reading, schedule public hearing for August 25 and refer to Budget & Finance. Mr. Kaneshiro: Second. COUNCIL MEETING • - 7 - • July 28, 2010 Mr. Bynum moved for passage of Proposed Draft Bill (No. 2369) on first reading, that it be ordered to print, that a public hearing thereon be scheduled for August 25, 2010, and that it thereafter be referred to the Budget & Finance Committee, seconded by Mr. Kaneshiro. Chair Asing: Any discussion? Anyone in the audience who wants to speak on this item? Glenn please. The rules are suspended. There being no objection, the rules were suspended. GLENN MICKENS: Thank you, Kaipo, for the record Glenn Mickens. I just thought Ken asked a great question relating to this thing. I didn't hear anybody answer it. I thought maybe somebody from the administration would. What happened to this in the budget hearing? Why hasn't money been appropriated in the budget hearing for this? Why are we...why are we...one...about one month now into the fiscal year and we're asking for almost... now this one bill here is seventy thou...we're asking for almost $2 million out of our general fund, I'm just wondering, does somebody have an answer to that or again will administration be here to answer that question? Chair Asing: Okay, we'll take care of that later, Glenn. Mr. Mickens: Thank you. Chair Asing: Any other questions? Anyone else? If not, I'd like to call the meeting back to order. There being no one else wishing to speak, the meeting was called back to order, and proceeded as follows: Chair Asing: We have a motion on the floor. Any further discussion? If not, roll call please. Mr. Nakamura: Councilmembers Bynum? Mr. Bynum: Aye. Mr. Nakamura: Chang? Mr. Chang: Aye. Mr. Nakamura: Furfaro? Mr. Furfaro: Aye, I just want to double check the public meeting was for August 25? Mr. Nakamura: Public hearing is August 25th. Chair Asing: Yes. Mr. Furfaro: Aye. Mr. Nakamura: Kaneshiro? Mr. Kaneshiro: Aye. Mr. Nakamura: Kawahara? COUNCIL MEETING • - 8 - Ms. Kawahara: Aye. Mr. Nakamura: Kawakami? Mr. Kawakami: Aye. Mr. Nakamura: Chair Asing? Chair Asing: Aye. • July 28, 2010 The motion for passage of Proposed Draft Bill (No. 2369) was then put, and carried by the following vote: FOR PASSAGE: Bynum, Chang, Furfaro, Kaneshiro, Kawahara, Kawakami, Asing TOTAL - 7, AGAINST PASSAGE: None TOTAL - 0, EXCUSED & NOT VOTING: None TOTAL - 0. Chair Asing: Next item please. Mr. Nakamura: The next bill for first reading is Proposed Draft Bill (No. 2370). Proposed Draft Bill (No. 2370) - AN ORDINANCE AMENDING ORDINANCE NO. B-2010-705 AS AMENDED, RELATING TO THE OPERATING BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII, FOR THE FISCAL YEAR JULY 1, 2010 THROUGH JUNE 30, 2011, BY REVISING THE SURPLUS AND APPROPRIATIONS ESTIMATED IN THE GENERAL FUND ($76,000.00 - Contribution to Solid Waste Fund): Mr. Kaneshiro moved for passage of Proposed Draft Bill (No. 2370) on first reading, that it be ordered to print, that a public hearing thereon be scheduled for August 25, 2010, and that it thereafter be referred to the Budget & Finance Committee, seconded by Mr. Bynum. Chair Asing: Any discussion? Glenn. The rules are suspended. There being no objection, the rules were suspended. GLENN MICKENS: For the record, again Glenn Mickens. Thank you, Kaipo. I'm just wondering, you know, we keep on pumping this money into this solid waste fund. Is it ever going to be a true enterprise fund? You know, that's another question I don't know if you'll answer it or not. Maybe you won't, but somebody should have an answer. Is it ever going to be a true enterprise fund where, you know, the amount going out equals the amount coming in or are we going to keep on putting millions of dollars into this solid waste fund? You know, again, we call it an enterprise fund, but it's not an enterprise fund. So I just wondered if you had an answer or if somebody could give us an answer. Chair Asing: Yes, go ahead, Councilmember Bynum. Mr. Bynum: Avery large expense for the county is to deal with our solid waste appropriately. I don't believe, in my opinion, it'll ever...we will ever collect fees that are equivalent to the cost of solid waste and so, you know I guess the answer would be no. And to address your other concern, most of the items in this list that we're trying to get through to get to the big business we have today, were anticipated in the budget and these are kind of housekeeping items about moving it from the general fund into the appropriate fund. But it was not COUNCIL MEETING • - 9 - • July 28, 2010 unanticipated, right. The exception might be the Hanapepe Walkway where it's a really important project for Hanapepe and you know, it's a...we needed some additional funds to do the matching funds. But most of this...right, so I hope I answered your questions. Mr. Mickens: Well, basically then we can stop calling it an enterprise fund. Is that true? Mr. Bynum: I don't know that we call it that. Mr. Mickens: Well, that's what it's called now. Mr. Bynum: But in the county, solid waste gets a large contribution from the general fund and always has because it's an expensive proposition. Mr. Mickens: Right. Mr. Bynum: And we've adopted a solid waste plan to try to improve our handling over the next few years, so it'll be a common topic at the council as we roll out a better way to handle our solid waste. Mr. Mickens: Well, as you say, if that is a fact, then fine, okay, but let's...let's call it what it is then. It's just going to be a perpetual tax fund that we're going to have to keep putting the money into, right? Mr. Bynum: I've done the best to answer your questions. Mr. Mickens: Okay. Chair Asing: Councilmember Furfaro. Mr. Furfaro: Yes. Glenn, I've answered your question before. I think I came out and said I think this is overstated as an enterprise fund. You've heard me say that before. Mr. Mickens: Yes. Mr. Furfaro: And I still stand by that. Okay, I hope that answers your question. But the other thing and most important here is this is the first step for us to incrementally evaluate the possibility of recovering funds for solid waste and eventually we will have software that identifies people's tax rates and bills. Then just like in California... Mr. Mickens: Right. Mr. Furfaro: They have an area where they then charge you for school board. Mr. Mickens: Yes. Mr. Furfaro: But we don't have that here. The state is the school board. You can have a piece for refuse removal, which will show up whether it's $6.50 a month for the first time we increment it, but eventually in this plan, as we hope we're reversing cost to identify the collection fees, it'll eventually be in a bill that you get, and it'll separate it out. Can we go from $12 million is what it cost us to run solid waste here and we subsidize it right now by about $8 million from COUNCIL MEETING • - 10 - • July 28, 2010 the general fund, can we ever get to the point that you were discussing with Mr. Bynum? I don't think so. Are we started out on the path to try to lessen that burden? Then this is what we're doing. I hope that answers your question. Mr. Mickens: Yes, thank you, Jay. Chair Asing: Thank you. Is there anyone else? If not, I'd like to call the meeting back to order. There being no one else wishing to speak, the meeting was called back to order, and proceeded as follows: Chair Asing: We have a motion on the floor and a second. Any further discussion? If not, roll call please. The motion for passage of Proposed Draft Bill (No. 2370) was then put, and carried by the following vote: FOR PASSAGE: Bynum, Chang, Furfaro, Kaneshiro, Kawahara, Kawakami, Asing TOTAL - 7, AGAINST PASSAGE: None TOTAL - 0, EXCUSED & NOT VOTING: None TOTAL - 0. Chair Asing: Next item please. Mr. Nakamura: Next bill for first reading is Proposed Draft Bill (No. 2371). Proposed Draft Bill (No. 2371) - AN ORDINANCE AMENDING ORDINANCE NO. B-2010-706 AS AMENDED, RELATING TO THE CAPITAL BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII, FOR THE FISCAL YEAR JULY 1, 2010 THROUGH JUNE 30, 2011, BY REVISING THE SURPLUS AND APPROPRIATIONS ESTIMATED IN THE GENERAL FUND ($400,000.00 - Project Contingency): Mr. Bynum moved for passage of Proposed Draft Bill (No. 2371) on first reading, that it be ordered to print, that a public hearing thereon be scheduled for August 25, 2010, and that it thereafter be referred to the Budget & Finance Committee, seconded by Mr. Kaneshiro, and carried by the following vote: FOR PASSAGE: Bynum, Chang, Furfaro, Kaneshiro, Kawahara, Kawakami, Asing TOTAL - 7, AGAINST PASSAGE: None TOTAL - 0, EXCUSED & NOT VOTING: None TOTAL - 0. Chair Asing: Next item please. Mr. Nakamura: Next bill for first reading is Proposed Draft Bill (No. 2372). Proposed Draft Bill (No. 2372) - AN ORDINANCE AMENDING ORDINANCE NO. B-2010-705 AS AMENDED, RELATING TO THE OPERATING BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII, FOR THE FISCAL YEAR JULY 1, 2010 THROUGH JUNE 30, 2011, BY REVISING THE SURPLUS AND APPROPRIATIONS ESTIMATED IN THE GENERAL FUND ($822,391.00 - Solid Waste Fund; $603,121.00 -Sewer Fund): Mr. Bynum moved for passage of Proposed Draft Bill (No. 2372) on first reading, that it be ordered to print, that a COUNCIL MEETING • - 11 - • July 28, 2010 public hearing thereon be scheduled for August 25, 2010, and that it thereafter be referred to the Budget & Finance Committee, seconded by Mr. Kaneshiro, and carried by the following vote: FOR PASSAGE: Bynum, Chang, Furfaro, Kaneshiro, Kawahara, Kawakami, Asing TOTAL - 7, AGAINST PASSAGE: None TOTAL - 0, EXCUSED & NOT VOTING: None TOTAL - 0. Chair Asing: Next item please. Mr. Nakamura: On page five of the council's agenda, we're on Proposed Draft Bill (No. 2373). Proposed Draft Bill (No. 2373) - AN ORDINANCE AMENDING ORDINANCE NO. B-2010-705 AS AMENDED, RELATING TO THE OPERATING BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII, FOR THE FISCAL YEAR JULY 1, 2010 THROUGH JUNE 30, 2011, BY REVISING THE SURPLUS AND APPROPRIATIONS ESTIMATED IN THE GENERAL FUND ($200,000.00 - Sewer Fund, `Ele`ele Main Replacement, Waialo Road & Highway): Mr. Furfaro moved for passage of Proposed Draft Bill (No. 2373) on first reading, that it be ordered to print, that a public hearing thereon be scheduled for August 25, 2010, and that it thereafter be referred to the Budget & Finance Committee, seconded by Mr. Kaneshiro, and carried by the following vote: FOR PASSAGE: Bynum, Chang, Furfaro, Kaneshiro, Kawahara, Kawakami, Asing TOTAL - 7, AGAINST PASSAGE: None TOTAL - 0, EXCUSED & NOT VOTING: None TOTAL - 0. Chair Asing: Next item please. Mr. Nakamura: Next bill for first reading is Proposed Draft Bill (No. 2374). Proposed Draft Bill (No. 2374) - A BILL FOR AN ORDINANCE TO AMEND ORDINANCE NO. B-2010-705, AS AMENDED, RELATING TO THE OPERATING BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII FOR THE FISCAL YEAR JULY 1, 2010 THROUGH JUNE 30, 2011 BY REVISING THE SURPLUS AND APPROPRIATIONS ESTIMATED IN THE GENERAL FUND ($95,000.00 - Solid Waste -Host Community Benefit (CAC Process)) Mr. Furfaro: Thank you. I would like to move to approve, but I will have an amendment to discuss, if I can get a second. Chair Asing: Can I have a second on the approval. Mr. Bynum: Second. Chair Asing: Okay, with that, can I have the amendment now, please. Mr. Furfaro: Yes, I'd like to offer this amendment, introduce it as really a better narrative relating to this $95,000.00 as a not to exceed number, but also expanding the current survey and making sure the materials that we've had to this date are incorporated iri this process. Is that amendment... is it circulating? COUNCIL MEETING. - 12 - • July 28, 2010 Mr. Nakamura: Mr. Chair, just to clarify, if we could get the motion on the...the main motion to include the approval on first reading, the public hearing on August 25th and the referral to the Budget and Finance Committee. Mr. Furfaro: That's correct. Refer to Budget & Finance and then I've just introduced this amendment. Mr. Furfaro moved for passage of Proposed Draft Bill (No. 2374) on first reading, that it be ordered to print, that a public hearing thereon be scheduled for August 25, 2010, and that it thereafter be referred to the Budget & Finance Committee, seconded by Mr. Bynum. Chair Asing: Okay. Mr. Bynum: Second. Mr. Furfaro moved to amend Proposed Draft Bill .(No. 2374), as shown in the Floor Amendment attached hereto (Attachment No. 1), seconded by Mr. Kaneshiro. Mr. Furfaro: Yes, thank you. Chair Asing: Go ahead. Mr. Nakamura: And now we're on the amendment. Chair Asing: We're on the amendment now. Is there any discussion on the amendment? If not, go ahead, Councilmember Bynum. Mr. Bynum: Yeah, I appreciate this amendment because it just makes it more clear that we're not restarting a process, but extending a process, so thank you. Chair Asing: Okay, any further discussion? If not, all those in favor, say aye. The motion to amend Proposed Draft Bill (No. 2374), as shown in the Floor Amendment (Attachment No. 1), was then put, and unanimously carried. Chair Asing: That was on the amendment. We're now back to the main motion as amended. Is there any further discussion on the main motion as amended? If not, roll call please. The motion for passage of Proposed Draft Bill (No, 2374) as amended on first reading, that it be ordered to print, that a public hearing thereon be scheduled for August 25, 2010, and that it thereafter be referred to the Budget & Finance Committee was then put, and carried by the following vote: FOR PASSAGE: Bynum, Chang, Furfaro, Kaneshiro, Kawahara, Kawakami, Asing TOTAL - 7, AGAINST PASSAGE: None TOTAL - 0, EXCUSED & NOT VOTING: None TOTAL - 0. Chair Asing: Next item please. Mr. Nakamura: Last bill for first reading is Proposed Draft Bill (No. 2375). COUNCIL MEETING ~ - 13 - • July 28, 2010 Proposed Draft Bill (No. 2375) - AN ORDINANCE AMENDING ORDINANCE NO. B-2010-706, AS AMENDED, RELATING TO THE CAPITAL BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII FOR THE FISCAL YEAR JULY 1, 2010 THROUGH JUNE 30, 2011 BY REVISING THE BUDGET PROVISIONS (Kekaha Host Community Benefits accrued interest account): Mr. Kawakami moved for passage of Proposed Draft Bill (No. 2375) on first reading, that it be ordered to print, that a public hearing thereon be scheduled for August 25, 2010, and that it thereafter be referred to the Budget & Finance Committee, seconded by Mr. Furfaro. Chair Asing: Mr. Kawakami: Chair Asing: Any discussion? Yes, Mr. Chair. Yes, go ahead. Mr. Kawakami: Thank you, Mr. Chair. You know, the people of Kekaha have spoken. They wish to have their money put into an account where they could accrue interest and build their funds. So this proposed bill does exactly that and I'd like to thank former councilmember Ron Kouchi who actually introduced the opportunity and brought this to my attention and also the administration, the finance director, who was kind of planning to put it into an account, but they needed the council's approval to move the interest into the host community benefit account for the people of Kekaha. Chair Asing: Thank you. Any further discussion? Yes, councilmember Furfaro: Mr. Furfaro: Yes, thank you, since we have two bills on Kekaha today, one reestablishing money for the CAC and of course, Mr. Kawakami's introduction of the interest earning account, I just want to make certain that we have a regular reporting system for the interest earned in a special account and I think we have the administration's attention to that, and I just want to thank Mr. Kawakami. Chair Asing: Thank you. Any further discussion? If not, roll call please. The motion for passage of Proposed Draft Bill (No. 2375) on first reading, that it be ordered to print, that a public hearing thereon be scheduled for August 25, 2010, and that it thereafter be referred to the Budget & Finance Committee was then put, and carried by the following vote: FOR PASSAGE: Bynum, Chang, Furfaro, Kaneshiro, Kawahara, Kawakami, Asing TOTAL - 7, AGAINST PASSAGE: None TOTAL - 0, EXCUSED & NOT VOTING: None TOTAL - 0. Chair Asing: With that, what I'd like to do is take the caption break now before we get to bills for second reading. There being no objection, the meeting was recessed at 11:06 a.m. The meeting was called back to order at 11:29 a.m., and proceeded as follows: COUNCIL MEETING. - 14 - ~ July 28, 2010 Chair Asing: This meeting is now called to order. Mr. Clerk, we have bills for second reading, we have the transient vacation rentals bill, we have the integrated solid waste management bill and we have the farm worker housing bill. Councilmembers, what I'm going to be asking you today is to defer both the vacation rental bill and the farm worker housing bill. My reasoning is...for asking you that is that I do not believe that it is right to continue to add amendments at this stage of the game. Amendments, as you know well, should have been done on the committee level, not the last minute when the bill is about to be passed. It is not fair for the public to be voting...to be not voting, but to be making comments regarding the bill when they have not had any opportunity to at all to look at the amendments except today. They're going to be faced with...there is an amendment and you're not exactly sure what it is. So, these things should have been done on the committee level and we continue to do this. So I'm asking Councilmembers to please, at this stage of the game what I'd like for you to do is we'll do the amendments. No problem with that. After we do the amendments, we'll defer the bill. My reason again is the community now and the general public will have the opportunity to make comments, anyone can make any comment they want, but they will have the bill as we are going to pass it and not any more amendments. So, I'd like to have clean bills on the floor so that when we have discussion it is on a clean bill. There's nothing else to discuss. You will have an opportunity to look at this clean bill. From today to the next meeting, you will have that bill that we're going to pass. There will be no more amendments. I believe that that's the way we should do things. That's the way it was set up to be done and that's the reason we have committees. All bills are done on the committee level. After it's voted on the committee, then it's passed to the full council and the normal is to have all the work done on the committee level, so when it gets on the full council, we vote on the bill without amendments. That's the normal. We've kind of strayed away from that and maybe partly due to my fault for continuing to accept recommendations on amendments. So, I'll be making that recommendation and we'll see what happens. But I'll accept any comments. Go ahead, Councilmember Kawakami. Mr. Kawakami: Thank you, Mr. Chair. In regard to the farm worker housing bill, the only amendment that I was aware of was a possible amendment introduced by Vice Chair Furfaro as an attempt to reach out to me and my concerns. Since then I've met with some of the county attorneys and also members of the planning department and it seems as if the amendment that was going to be introduced which hasn't been introduced doesn't achieve the intent that I wanted it so. It doesn't have the essence that I intended it to have and so I will be actually asking at the right time that we not introduce that amendment. So as far as I know there are no amendments on my behalf. So if there are no amendments, I don't think that we're necessarily dealing with a bill that is not clean. Chair Asing: Okay, then you need to be corrected because there are amendments. Mr. Kawakami: Okay. Chair Asing: And I have seen the amendments. I just saw the amendments and I... what I'm seeing is I'm seeing staff rushing to the Xerox machine and starting to Xerox items and I'm saying, what's that? Oh, there's some amendments to be made to the bill. It's not yours... Mr. Kawakami: Okay. Chair Asing: ...amendment. It is others and this is happening on both the TVR bill and the farm worker housing bill, and I do not believe that is what the public should expect. They should have the opportunity to make comment COUNCIL MEETING ~ - 15 - • July 28, 2010 on the clean, full bill so that when you get here the next time you will have the opportunity from the end of today, this is the bill that is before the council and you make your comments at that time, but you have a clean bill. So in reference to your question, it is not your amendment that I'm making reference to, so thank you. Councilmember Kaneshiro. Mr. Kaneshiro: Thank you, Mr. Chair, if I may, I'll speak specifically to Bill No. 2364. As most of you know, for Bill No. 2318 I recused myself. But for Bill No. 2364, I do have an amendment, but the amendment is mostly a correction amendment. It's the same amendment that was put on the floor several times, was taken out and basically, you know, I'm putting it back in for reasons that I think it should have been there. And there were different conflicting testimonies or what I would say that recommendations that we had which included the real property tax division on taking out certain areas of ag dedication. So, you know, I resolved those issues and all I'm doing is simply reinserting that back in, so it's not a significant change from what the public has seen the bill go through for the last year. So I would say that, you know, I can only speak for 2364, so I won't be supporting a deferral for that bill at this time. Chair Asing: Thank you. Councilmember... Mr. Kaneshiro: Based on my amendment. Now I'm not certain if there's other amendments. If there are, then I will support the Chair's recommendation. But the amendment I did on the committee floor is basically not a very significant change to the bill itself. Chair Asing: Okay, let me just answer that. Again, councilmembers, you know the policy that we have set. The policy that we have set is you do all the work in the committee and when you move that out of the committee onto the main floor, generally there should be no amendments. It should be a clean bill. The public is deserving of that opportunity to comment on a clean bill, not coming here at the last minute and all of a sudden you're faced with making comments on the bill plus the amendment which you know nothing about. And I want to give the public that opportunity to review that amendment so that when they come at the next meeting, it's a clean bill, you have the total time and effort to make whatever comment you want so that you can try to change our minds or not change our minds on voting either for or against the bill. So that's my reasoning with that. Councilmember Bynum. Mr. Bynum: I think that everybody that follows the council knows what's going on. Just a few weeks ago I was making the Chair's argument about a bill that it should stay in committee and be managed there, and he was making the opposite argument and it was just about .politics. It's no secret that the Chair is opposed to both of these bills and is trying to use the...what seems a very reasonable comment to his advantage. That's my belief. I think it's clear from the history of our council. What he's saying is accurate. We should deal with substantive amendments in committee. I believe any amendments that come today are not substantive, they're not wholesale changes, but I can tell you I've sat on this council where extremely large changes to bills happen in the last few minutes after months of debate, the housing bill in particular last session and other bills. The amendments that are before us today are not major wholesale changes to the bill that I'm aware of and I won't support any deferral. You know, the farm worker housing bill was at the full council, went back to committee as I recall, and now is before the council again. This is the people's business. You... many of you have been here many times. We're ready to make a decision. Whatever the outcome is, I'm prepared to make a decision on both of these bills today. So I will not support a deferral on either bill. COUNCIL MEETING - 16 - ~ July 28, 2010 Chair Asing: Thank you. Any further discussion? Yes. Councilmember Furfaro. Mr. Furfaro: Yes, Mr. Chair, I have amendments as it relates to commentary that we got from LURF as it relates to farm worker housing. They are not significant. They talk in terms that any tentative density that is given for farm workers is really not permanent density. It just tightens that up a bit. And I might point out that everybody should also know that the State's Important Ag Land Committee is functioning right now to give density to farm workers based on the Important Ag Land piece that would not be as restrictive as the parameters that we have put in the bill through the committee. So I don't think it is that substantive and I also have to point out that, you know, OIP said at one time their belief was that the two non-committee members in any meeting should actually not even attend the committee meeting that they don't belong to. So we had to change our rules to make everybody an ad hoc (sic) committee member to accommodate OIP's opinion and therefore those ad hoc committee members only have the full council's opportunity to actually introduce an amendment. But as ad hoc members now, they can at least sit through the meeting of the committee. So, you know, we're getting some conflicting instructions that kind of put us in a position that, you know, people want to have good information to be able to make their decisions on, but you know, they don't have the opportunity to enter amendments if they're not committee members. So my amendments are not more than some substance that LURF is recommending that we put in place. Chair Asing: Okay, any further discussion? Councilmember Chang. Mr. Chang: Thank you, Chair. I'm not going to support the deferral. I think the planning committee had a lot of discussion, a lot of time to think about it. We have people here on both sides of the issue, whether it's the transient vacation rental or the farm worker housing bill, and if the bill is set before this full council and we call for a vote, I'm prepared and ready to vote. And I'm not going to support. the deferral. Thank you. Chair Asing: Thank you. Any further discussion? Councilmember Kawahara. Ms. Kawahara: Thank you, Chair. I also...I'm hearing...what I'm hearing here is that the amendments are...proposed amendments are not substantial. I'm not willing to...I'm willing to look at the amendments and if they're not substantial, I will not support a deferral. I respect your decision to try and defer something for the sake of the public; however, I think we also have procedures in place where there's a recess and that we've done it several times. There's process and policy. Maybe the policy has been that...the policy generally is that we do it all in committee, substantial stuff in committee, but I've been here long enough just in the two years to know that that changes. And things that happen in committee come out into the full council and we make insubsta... not substantial changes. I'm comfortable with these if they're not substantial changes to not defer these. Thank you. Chair Asing: Thank you. Any further discussion? If not, read the bill please. Mr. Nakamura: Under Bills for Second Reading, first bill for second reading is Bill No. 2364, Draft 1. COUNCIL MEETING ~ - 17 - ~ July 28, 2010 BILLS FOR SECOND READING: Bill No. 2364, Draft 1 - A BILL FOR AN ORDINANCE TO AMEND CHAPTER 8, KAUAI COUNTY CODE 1987, AS AMENDED, RELATING TO THE COMPREHENSIVE ZONING ORDINANCE (Transient Vacation Rentals) Chair Asing: Thank you. What I'd like to do is open it up to the public first. Do we have registered speakers? Mr. Nakamura: We have registered speakers, Mr. Chair. The first registered speaker... Chair Asing: How many registered speakers do we have? Mr. Nakamura: We have 15, Mr. Chair. Chair Asing: How many again? Mr. Nakamura: Fifteen. Chair Asing: Fifteen. Mr. Nakamura: 1-5. Chair Asing: 1-5, wow...wow. Okay, why don't we start. Then go ahead, first speaker please. The rules are now suspended. There being no objection, the rules were suspended. Mr. Nakamura: The first registered speaker is Peter Bilbo followed by Arthur Koebel. PETER BILBO: Good morning. My name is Pete Bilbo and I'll keep this as short as possible. I'm speaking on behalf of this amendment. I'd like to see this passed. It has been a long time coming and if it's possible to some way work in to the law, the amendment, that we could maybe defer actually making it take place until the important ag lands have been designated and so forth. I'd like to see that happen as well. I think we're kind of putting the cart before the horse in not having that finished and dealing with vacation rentals. So that's kind of where I'm at. Chair Asing: Thank you. You know, councilmembers, let me... thank you very much. Any questions for the speaker? If not, thank you very much. Before we call the next speaker up, councilmembers, do you want to introduce the amendments and have the amendments at least read, discussed, and we can pass the amendments so that the public will have an opportunity to at least know when we pass the bill it's going to be with those amendments. You don't know that yet. So, I think it's the better way, so I'm going to leave it up to councilmembers because I think it is in fairness to all of you here and the general public that you know the amendments. So, maybe we should put the amendment on the floor, vote on it, and then get that cleared that away, the amendments, and then we'll open it up to the public. The public will then know these are the amendments that are going to take place. So what is the pleasure of the group. Councilmember Bynum. Mr. Bynum: I'm happy to agree with the Chair on this one. Chair Asing: Okay. COUNCIL MEETING ~ - 18 - ~ July 28, 2010 Mr. Furfaro: I think it's a very good idea that the public has an opportunity to see what we'll be discussing. Chair Asing: Okay, thank you. The meeting was called back to order, and proceeded as follows: Chair Asing: Okay, with that said, let's have a motion to approve the bill first. Mr. Bynum: So moved. Mr. Chang: Second. Mr. Bynum moved to adopt Bill No. 2364, Draft 1 on second reading and final reading, and that it be transmitted to the Mayor for his approval, seconded by Mr. Chang. bill. Chair Asing: Mr. Furfaro: Chair Asing: Mr. Furfaro: Chair Asing: Mr. Furfaro: Chair Asing: copies. Okay, now let's have the first amendment to the Mr. Chair, may I ask that we take a short recess... Sure. ...for the purpose of making copies... Okay. ...for the public as... Okay, we'll take a short recess and then we'll make There being no objection, the meeting was recessed at 11:46 a.m. The meeting was called back to order at 12:18 p.m., and proceeded as follows: Chair Asing: The meeting is now called back to order. With that, Mr. Clerk, I believe we're going to have the first amendment. Did we do the motion to approve? Mr. Nakamura: Yes. Chair Asing: And we did the second. Mr. Nakamura: We're on Bill 2364, Draft 1. There was a motion to approve and a second, so. Chair Asing: Thank you. With that, can we have the amendment now. Councilmember Kaneshiro. Mr. Kaneshiro: Thank you, Mr. Chair, for the consideration given to fix up the amendment as I realized even to change the date from last week to this week, it takes some format to do it and it takes some time. So, you know, just small changes like that takes some time for the staff to do. But as I stated earlier in my COUNCIL MEETING • - 19 - ~ July 28, 2010 discussion for not moving to approve for the deferral, my amendment that I have circulated among my members is not a very significant change to the amendment that was introduced at the committee meeting the last committee meeting we had. So at this time, I would like to make a motion to have this amendment approved and basically what this amendment would do to the section (c) of the current bill that we have before the full council have some small changes that I would like to discuss about once we have the motion on the floor. Chair Asing: Thank you. Could I have the... Go ahead. Mr. Kaneshiro: Sorry, we need to take... Chair Asing: Short recess. There being no objection, the meeting was recessed at 12:20 p.m. The meeting was called back to order at 12:32 p.m., and proceeded as follows: Chair Asing: The meeting is now called back to order. With that, Mr. Clerk? Mr. Nakamura: Council Chair, we're on the second reading of Bill No. 2364, Draft 1. There's a motion to approve and a second. And we're in the process of circulating, I believe, a floor amendment from Councilmember Kaneshiro. Chair Asing: Thank you. With that, Councilmember Kaneshiro. Mr. Kaneshiro: Thank you, Mr. Chair. If I was given a second chance, I guess I would have to agree with the procedure and policy the Chair first stated that perhaps, you know, we shouldn't be doing amendments on the floor. I thought it was rather simple, but as you can see that with this new system where you gotta go into computers and so forth, you know, it takes a little while more. So, I apologize to every one of you for that. But as I stated earlier, you know, my amendments are not very significant. It was introduced last week in the committee meeting. It was passed out in the committee meeting. What I did do is circulate it throughout the members today of the council is that I did add something else in there which was taken out and specifically, you know, if we can move this on the floor at this time and then I would like to get into some discussion on the minor changes that I did. So I would move to have my amendment, as circulated, approved. Chair Asing: Thank you. Mr. Bynum: Second. Mr. Kaneshiro moved to amend Bill No. 2364, Draft 1 as shown in the Floor Amendment attached hereto (Attachment No. 2), seconded by Mr. Bynum. Chair Asing: You want to just describe the amendment and then we can just vote on it. Mr. Kaneshiro: Right, so now that we've had a motion on the floor and a second, basically what I did is that, you know, we took out the part about ag dedication. To me, you know, it was always important to me that if you have ag land, you're farming, then that's fine. But ag dedication is a way of proof that shows it if you are really farming or not. There were some concerns, I guess, from the administration about keeping ag dedication in there, and specifically I stated COUNCIL MEETING ~ - 20 - ~ July 28, 2010 that, you know, this is all prior to March 7, 2008. Now, if you have an ag dedication on the property, you can show proof that you have an ag dedication on the property, then there's reason for you to move forward to go ahead and get a use permit. That's the process that allows you to. We took that out for some reason. I'm not certain why. I didn't catch it till after I introduced the amendment, so I'll take the blame for that. But specifically for me it was important that this is one of the signs that...that is ag dedication is occurring on the property. The other change I made when we had some discussion on a bona fide agricultural operation. That was approved in the last meeting we had. Basically, we stated two forms that you would show as a bona fide operation, agricultural operation existed prior to March 7, 2008 and it was the State General Excise Tax Form and the Federal Income Tax Form 1040 Schedule F. Now, after preparing some discussions, basically I changed it to require both. And again, after further research with my accountants and you know some CPAs and so forth, I found that not everyone files Schedule F. They can be a legitimate farming operation, they can also file a Schedule E or there is some other schedule forms that you can file that the federal requires to show that you are in farming and actively farming. So, basically what I stated was and/or. So if you can show that you have a General Excise Tax, State General Excise License that you are legitimately farming under the State General Excise License and/or if you have the Schedule F, that's a bonus for you. So I didn't want to make it too complicated. I felt that if you're legitimately farming at that time prior to March 7, 2008, the General Excise Form that you file with the State should show that, I mean, you know, if you were legitimately farming. So again, that's the concern that I have. As most of you know, you know, I've been farming for generations and I...in fact, I'm from a third generation farming and we still are farming and these are farms. As I explained in the last meeting I had that I filed myself too, you know. Schedule F, probably because I've been losing a lot, I file the Schedule F. Maybe if I was making some good money, I'll file a Schedule E or something else to show the IRS that, you know, it's profitable. So, I didn't really want to complicate the issues. But... and again, in the last part basically we just added the part about where the Planning Commission finds that the size, shape, topography, location or surroundings of the property or other circumstances did not allow an applicant to qualify for an agricultural dedication pursuant to the County of Kaua`i's Department of Finance Rules and so forth that they inhibited intensive agricultural activities. So again I just added that section back in there. So, I don't think it's a significant change and I apologize for the delay, not realizing, you know, the steps that the staff had to go through to make these changes. And I apologize to the public too because I know it's getting time for lunch and everyone's hungry. Chair Asing: Thank you. Any further discussion on the amendment? Go ahead, Councilmember Bynum. Mr. Bynum: I appreciate Councilmember Kaneshiro's amendment and I believe as advertised these changes are consistent with his intent and, you know, I'm prepared to support this amendment. Chair Asing: Thank you. Any further discussion? If not, all those in favor of the amendment, say aye. The motion to amend Bill No. 2364, Draft 1, as shown in the Floor Amendment (Attachment No. 2), was then put, and unanimously carried. Chair Asing: With the amendment carrying, what I'd like to do now is we're going to take the lunch break now. Sorry, but we'll come back after lunch and open it up to the public with the amendment carrying. What I'd like to COUNCIL MEETING • - 21 - • July 28, 2010 do now is we're going to take the lunch break now. Sorry, but we'll come back after lunch and open it up to the public. You now know that the bill before you is going to be acted upon with the amendment that just passed. So that is the full bill, whatever was on there plus this amendment is what we're going to be voting on today. Mr. Kaneshiro: Mr. Chair, I know from...we want to get the amendment out so people...we'll make copies for people so before they go to lunch they have the copies and they can look at the amendment. So with that... Chair Asing: wants to look at it. Mr. Kaneshiro: Chair Asing: be back at 1:40 p.m. Thank you. Do we have copies? We have copies for anyone who Thank you, Mr. Chair. Thank you. With that, we'll break for lunch. We'll There being no objection, the meeting was recessed at 12:40 p.m. The meeting was called back to order at 1:48 p.m., and proceeded as follows: Chair Asing: This Council Meeting is now called back to order. With that Mr. Clerk I believe we are suspending the rules and opening the meeting up to public testimony. For the person who spoke earlier, I will give him another opportunity because we did not have an amendment but I don't see him in the audience.' So can we have the next speaker please? There being no objections, the rules were suspended. Mr. Nakamura: The next registered speaker Arthur Koebel, followed by Warren Doi. ARTHUR KOEBEL: Good afternoon, my name is Arthur Koebel. I would first like to thank the Council for letting me speak today, I came here from California specifically and I would have really been bummed if I couldn't do that today. We purchased our beach house on Moloa`a Road in 1994. We have a nine hundred (900) square foot whole house on less than a quarter acre. Our lot is not a result of a large agricultural split. Our property's boundaries have been unchanged since the 1800s when it was first recorded. When we purchased our home in 94 it was a vacation rental and the only way we could afford it was to keep it as a vacation rental. We contacted the county to inquire as to what permits would be needed and were told there was no permit necessary and to register and pay our taxes. We have faithfully paid our taxes for sixteen (16) years and employed a property manager, a cleaning crew and a gardener. Our dream is to one (1) day retire here but if we cannot rent our home we will be forced to sell it and our dream of sixteen (16) years will be smashed. It is perplexing and frustrating that we have followed the rules for the past sixteen (16) years, (inaudible) for the day when we can retire here and now that can all be taken away from us. I ask you to find an equitable solution so that we can one (1) day live our dream on our beautiful island, thank you. Chair Asing: Thank you. Any questions Councilmembers? If not, thank you very much. Can we have the next speaker please? Mr. Nakamura: Warren Doi. COUNCIL MEETING • - 22 - ~ July 28, 2010 WARREN DOI: Hello, Warren Doi for the record. Thank you Chairman and members of the Council. I'll make this short and sweet. I've testified prior and I just wanted to thank everyone of the Council for your consideration and specifically for listening to both sides. It is a very... there's strong emotions on both sides and I feel that the current proposal seeks to come to a balance from both sides with very specific requirements upfront and restrictions along the way. And hopefully it will increase the amount of revenues to the county as well as jobs to the community, so thank you. Chair Asing: Thank you. Any questions Councilmembers? If not, thank you very much. Mr. Nakamura: The next... Chair Asing: Can we have the next speaker please? Mr. Nakamura: Next speaker is Charlotte Liddell, followed by Chad Deal. CHARLOTTE LIDDELL: Chairman Asing and members of the County, I'm Charlotte Liddell. I am asking you to vote in favor of Bill 2355 to amend the ordinance. I feel that this bill offers a fair compromise in a complex situation. In my personal case, our CRP lot is zoned Ag but the land has never been farmed and is not suitable for a farming operation, in my opinion. But we do have something very special to offer... the peaceful and rural surroundings of our area give our guest an experience of nature and of aloha that they can't find anywhere else. Hearing the birds and seeing the lush greenery and picking their own papayas and bananas is healing for them. And in return they give me an income that supports me and my family and that I re-circulate back into our local economy. At the time we created our TVR was supported by the county and I paid the taxes on the income I received and over the years I continued to devote my time and energy into this business. I feel it's important to support the diversity of the individual situations and the needs of the people of Kauai today especially during these hard economic times and thank you for your consideration. Chair Asing: Thank you. Next speaker please. Mr. Nakamura: Next speaker is Chad Deal, followed by Claudia Herfurt. CHAD DEAL: Good afternoon Council, Chair, my name is Chad Deal. I am no longer the owner of the farm because of a divorce, but my oldest son has now taken over the... my place in farming. We have a four (4) acre organic farm in. K-lauea and have been running it as a farm supplying fifty (50) to seventy (70) families a week with produce. And we also have a guest house on the property that we have been using as a vacation rental, offering our visitors both the opportunity to be on a farm and see Kauai in its ruralness and also allowing the... I think these types of opportunities allow the local people such as myself to interact with our visitors on a one (1) to one (1) level. My children have also now... my older children have both, my two (2) older ones have gone to other countries around the world. The next trip they're planning is to India to do exactly what we're talking about here... to visit farms, they bring back the knowledge that they gain from... well this next trip will be India, the last one was in Hungary and Austria and my... as I said my son has been inspired by these types of farming operation, the farming and tourism operations. My daughter was a... put in charge of the chefing on a farm that she visited in Umbria, that's in Italy. There were sixty (60) people staying on that farm, that's a very large farm. They have all the orchards and vineyards and COUNCIL MEETING. - 23 - • July 28, 2010 so forth. There were sixty (60) people on that farm over the holidays and she had the opportunity to be... she is a chef and she had the opportunity to not only live and work there for about six (6) weeks but she was also put in charge of the kitchen. So I feel that this type of operation is both beneficial for the people who live on the island and also for the visitors alike and I would like to see this continue and as I said we were doing this since 1987 when we first moved here, it was our dream to do just such. I believe we provided a great opportunity for both our visitors and for the local people on the island and thank you for your time. Any questions? Chair Asing: Thank you. Mr. Nakamura: Next speaker... Chair Asing: Do we have the next speaker please? Mr. Nakamura: Next speaker is Claudia Herfurt, followed by Steve Long. CLAUDIA HERFURT: Honorable Chair and Councilmembers, my name is Claudia Herfurt and I am renting a small vacation rental. I get two (2) guests most of the time, in Kilauea and my property unfortunately is not producing to farming because of the terrain and poor soil. I feel that having a vacation rental, a small one like mine in my neighborhood does not detrimentally influence the neighborhood. My guests don't generate noise because there are only two (2) people. I feel that the property because it's unsuitable for farming would not be reintegrated into a farming operation. I really would like to have the opportunity to acquire a permit for my special circumstances or apply for a permit and with consideration of the rules and regulations so that I can continue this rental that I have had since 87. And I think it's kind of ironic that somebody from Asia or Europe would have a legal vacation rental in Princeville and send the proceeds back to their respected countries whereas I who live here and I've lived here for thirty- one (31) years, year .around may not be allowed to continue with my vacation rental. So again I appreciate your diligence and your consideration for this issue and thank you for your time. Chair Asing: Thank you. Mr. Nakamura: Next speaker is Steve Long, followed by Harvest Edmonds. STEVE LONG: Good afternoon, my name is Steve Long and thank you for this opportunity. I'm an architect and over the last two (2) decades, I've professionally planned and personally developed numerous agricultural subdivisions on Kauai. I've always been dismayed that the agricultural requirement has not been enforced on Kauai, on these projects. I was responsible for completing the first two (2) agricultural master plans in association with new Ag subdivisions on Kauai. And in those plans, we restricted the building envelope, coordinated the soils, topography and the rainfall to recommend optimal plant production and we made the agricultural requirement part of the CC&Rs of the project. I support the TVRs in agricultural land because it makes agricultural a bona fide requirement of the registration process which I believe is a important first step to requiring and enforcing agriculture on agricultural lands on Kauai. In closing, I would like to ask the Council and the Planning Commission to take a close look at enforcing the agricultural requirement on agricultural land so that we can truly live on the Garden Isle. Thank you. Chair Asing: Councilmember Bynum. COUNCIL MEETING • - 24 - • July 28, 2010 Mr. Bynum: Mr. Long: Was it Mr. Long? Yes sir. Mr. Bynum: So you were referring to agricultural subdivisions that are commonly referred to as Gentlemen Estates? Mr. Long: I think we all live on the island and it's really clear that there is an agricultural requirement that is specifically outlined by the Assessor's Office on what constitutes agriculture and there's very few agricultural Gentlemen Estates that are producing real agriculture and that's something that we need and it's an asset that this island and this community can provide for itself and self-sufficiency particularly during these difficult times. So that's what I'm referring to and we... in the projects that I planned, professionally and personally developed, we've been able to allocate over eighty percent (80%) of useable land area for agriculture by limiting the building envelope and making it a part of the CC&Rs so that the homeowners association enforces it. I think that's an important first step to making sure that we produce agriculture on this island. Mr. Bynum: You peeked my interest because you said that you were dismayed that there wasn't already a regulatory requirement to do the things that you're talking about. Mr. Long: I think there's a regulatory requirement but it's not enforced. Mr. Bynum: Right. Mr. Long: And I'd love to see agriculture on agricultural lands... Mr. Bynum: Thank you. Mr. Long: And this is the first real step towards requiring a bona fide agriculture. Mr. Bynum: Okay thank you. Mr. Nakamura: Next speaker is Harvest Edmonds, followed by Kim Kerrigan. HARVEST EDMONDS: Aloha and thank you for letting me speak today. Since I... last week I gave my personal situation I just wanted to say... Mr. Chang: Harvest? Harvest? Excuse me; can you state your name for the record? Thank you. Ms. Edmonds: Okay. Since last week I gave my personal... Mr. Chang: Harvest, state your name for the record. Ms. Edmonds: I thought I did... my name is Harvest Edmonds. Mr. Chang: Thank you. COUNCIL MEETING • - 25 - • July 28, 2010 Ms. Edmonds: Okay... last week I gave my personal story about TVR,s on Ag land and I do support that and I just wanted to thank Tim for proposing this bill and I really appreciate the opportunity that this bill will hopefully will give those of us who are on Ag land and who has special circumstances be able to continue to do what we have been doing for many years and always thought that we were in the right to do it and have the legal right to do it. And I would just say thank you for supporting this bill, all of you. Chair Asing: Thank you. Next speaker please? Mr. Nakamura: Next speaker is Kim Kerrigan, followed by Susan Saemann. KIM KERRIGAN: Good afternoon, my name is Kim Kerrigan. I'm here in support of Bill 2364. My husband and I were able to visit Kauai over the course of the last five (5) to ten (10) years and stayed at a vacation rental which was our preference when we traveled, so that we can enjoy the more rural setting and explore the grounds, the flora and fauna, and all the things that are being grown there. During our visit to the special agricultural property, we were encouraged to experience and participate in the agricultural activities in this very quiet property. I can tell you that this experience was memorable and unique and it's what makes Kauai, Kaua`i... It's puzzling to my husband and I that you would want to discourage these experiences which may not be for everyone but certainly appeals to many visitors. Because of our experience at this vacation rental, it became our dream to buy land and build a home on Kauai which we have now succeeded in doing this year on the North Shore. We're now residents of Kauai because of the inspiring vacations we enjoyed here on Kaua`i's North Shore in a vacation rental and hope that many more visitors like ourselves would be able to experience a vacation rental in the future here in beautiful Kauai. Chair Asing: Thank you. Mr. Nakamura: Next speaker is Susan Saemann, followed by Paulina Barsotti. SUSAN SAEMANN: Hello my name is Susan Saemann and I'm also going to give testimony for Paulina after my testimony. And I have a farm on the North Shore and gave testimony in front of the Planning Commission. We have farmed since 1988 as well as run legal vacation rentals with General Excise Tax number and also paying all of the taxes. We did this every way it was legal. We have not changed the demographics of our neighborhood at all, we did not build anything to accommodate these visitors and we have had no complaints. In fact just like the person who spoke before me, people have come to this island... they have seen what a dream it is to live here and they have come here and become taxpaying citizens. So I would like to continue what is our lawful right to continue to do the vacation rentals, use our General Excise Tax number, pay our taxes to the State and to the County and to lawfully continue doing what we have been so honored to be able to do and welcome these visitors who will not come and stay at hotels to our island. So I am definitely in favor of this bill. Chair Asing: Thank you. Mr. Bynum: Thank you. Ms. Saemann: And now I would like to give testimony for Paulina Barsotti. To whom it may concern... COUNCIL MEETING • - 26 - • July 28, 2010 Mr. Furfaro: Excuse me? Chair Asing: Yeah. Mr. Furfaro: Mr. Chair, point of order... Chair Asing: Yes. Mr. Furfaro: In the sense that we do not typically let someone speak twice by bringing in another name to the table. Chair Asing: Yeah that's correct but I'm going to just allow it; why don't you go ahead and do it. Ms. Saemann: Thank you so much. Chair Asing: So you just have one (1) more? Ms. Saemann: Yes and it's very short. Chair Asing: Yeah, go ahead. Ms. Saemann: This is someone who works for me. Chair Asing: Go ahead. Ms. Saemann: I have been raised on Kaua`i's North Shore and have worked in the vacation rental market for quite some time. My family and I have been dramatically affected by the changes made to not allow Ag lands to vacation rent. I have lost my property, my flower shop business and my credit. I have been struggling very hard. I need this work in order to feed, house and take care of my children accordingly without the assistance from the government. All in all I hope and pray for a change so that things will get better for me and my family. I have worked for the Saemanns for quite some time and if things get better, I'm hoping to have enough work to help my family. High and regards Paulina. Chair Asing: Thank you. Can we have the next speaker please? Mr. Nakamura: Next speaker is Joseph Figaroa, followed by Anne Punohu. JOSEPH FIGAROA: Aloha. Can you hear me? There we go... good afternoon Councilmembers and Council Chair Asing. My name is Joseph Figaroa. I am in opposition to Bill 2364, for these particular reasons. Number one (1) it is in direct conflict with Hawaii Revised Statutes Chapter 205. Hawaii Revised Statutes Chapter 205 prohibits any usage of transient vacation on designated agricultural properties. It is indirect conflict of Ordinance 436 and 864, that's reason number two (2). Ordinance 436 was passed in 1982 by the County Council to create visitor destination areas. The primary reason was to designate areas on the island where resort activity would be permitted and to preserve other areas of the island for residential, agricultural and non-resort commercial and non-commercial uses. Since the ordinance of 436, the County of Kauai General Plan study called for the recognition and regulation alternative... regulation of alternative visitor destinations. This study was conducted over a period of five (5) public meetings that included various community members of Kauai and was completed in July 2005. Due to the findings of this study, ordinance '864 was passed on February 31, 2008 and signed into law March 7, 2008 by Mayor Bryan Baptiste. COUNCIL MEETING • - 27 - • July 28, 2010 Here are some of the discoveries and the conclusions of ordinance 86.4. While this type of visitor unit could be compatible with the character and nature of Kauai and while it has certain positive advantages for the community, the uncontrolled proliferation of vacation rentals in residential and other areas outside the Visitor Destination Areas is causing significant negative impacts to certain residential neighborhoods. Number two (2), in oceanfront of premium Real Estate value, second and third homes and vacation rentals are displacing traditional neighborhoods where people of low and moderate have been able to live in the past. Besides contributing to a lack of affordable housing to the community, this is changing the social character of neighborhoods where neighbors used to know each other. The Council also finds that transient accommodations and General Excise Taxes on various vacation rentals are sometimes not being paid, causing a loss of revenue to the State and the County Governments and failure to pay for impacts associated with visitors. The purpose of this bill is restore a balance between primary residence and single family transient vacation rentals by explicitly prohibiting new single family vacation rentals outside visitor destination areas. Multifamily vacation rentals are already so prohibited... (3 minutes) Mr. Figaroa: At this time, the Council then decides to accommodate those individuals who have been operating transient vacation rentals. With this accommodation, it gave a chance to individual owners to comply with county ordinances which brings us to the challenges that we face today and here are some of the questions... Chair Asing: Do you have a lot more to finish? Mr. Figaroa: Louder? Sure? Excuse me? Chair Asing: Do you have a lot more to finish? Mr. Figaroa: No, just a few... Chair Asing: Okay yeah your three (3) minutes are up... Mr. Figaroa: Alright. Chair Asing: But I'll give you some' time to finish up. Mr. Figaroa: Alright, thank you. Chair Asing: Go ahead. Mr. Figaroa: What was the County Council's intent with 864? Ordinance 864 explains the uncontrolled proliferation of vacation rentals and residential and other areas outside the visitor destination areas is causing significant negative impacts to certain residential neighborhoods. It was the intent of the Council to eliminate TVRs that was not operating legally and to prevent the addition of more TVRs outside the VDA. By passing the ordinance the Council's intent was to reestablish the VDA as the appropriate location for visitor accommodations. The closing statement... as I shared with you today through extensive studies, by the County of Kauai, that abuse of report... abuse of resort activities outside the visitor destination areas has been a major problem and has also been referenced by Councilmember Tim Bynum when he stated back in May that the County of Kauai has continued to allow agricultural properties to be abused. And with Bill 2364, it will open yet another avenue for abuse and COUNCIL MEETING - 28 - ~ July 28, 2010 manipulation of the law. I ask you members of the Council to please consider the entire community of Kauai when making your decision and to remember that the oath that you took when you were sworn into office, to protect the laws of the lands and to maintain the integrity of our community. On behalf of myself and the voters who have elected you to Council mahalo and thank you for your time. Chair Asing: Thank you. (Audience applauding) Chair Asing: I would appreciate it if we just keep it down please. Thank you. Mr. Nakamura: Next speaker is... Chair Asing: Next speaker. Mr. Furfaro: Excuse me. We have Councilwoman who has a question. Chair Asing: Oh I'm sorry, you had a question? Ms. Kawahara: Yes I had a question for the young man. Chair Asing: Okay hang on. Mr. Figaroa: Ask away. Ms. Kawahara: Hi, good to see you. Mr. Figaroa: Yes you too. Ms. Kawahara: You know I was a little bit confused by your testimony. You read this bill that we're considering today, is that correct? Mr. Figaroa: Yes I did. Ms. Kawahara: So you do know that... it says that this bill maintains the prohibition concerning the commencement of any new single family transient vacation rentals outside the VDA if use was not established prior to March 7, 2008 and that is the exactly the particular provisions of 864 and 876 that you discussed. Mr. Figaroa: Well my intent when I expressed the original... when 864 was originally written, these were the reasons the County Council had come to a conclusion to write 864 so basically my opinion is... why consider another bill to cancel out what you had already passed which was ordinance 864? Ms. Kawahara: That's why I'm glad we have a chance to talk because we're not cancelling out 864, 876... Mr. Figaroa: No, no, no... I'm not saying you're canceling out 864 but you're replacing it, am I not correct? Ms. Kawahara: No. This bill says we're maintaining the prohibition that we have... COUNCIL MEETING • Mr. Figaroa: -29- So is it all prohibitions? • July 28, 2010 Ms. Kawahara: Made in existent in 864 and 876 concerning any new VDAs... any new transient vacation rentals... Mr. Figaroa: So... Ms. Kawahara: Prior to 2008... so that's why I just wanted to be sure... I mean... Mr. Figaroa: Before I can answer any further questions what I'll have to do is reverse my... review the bill again to properly answer your questions. Ms. Kawahara: Thank you. Mr. Figaroa: You're welcome. Chair Asing: Thank you. Mr. Nakamura: Next speaker is Anne Punohu, followed by Lorna Nishimitsu. ANNE PUNOHU: Aloha, Anne Punohu. I had a conversation with a Councilmember but no alcohol was involved and I didn't even get pumpkin crunch which really would've changed my mind... but... moving on... we all need to lighten up a little bit. This bill will not help the majority of the people coming before you today claiming that they have a dream and they can't farm. This bill is specifically written in such a way that many people will not be able to get through this process. This bill is not written to accommodate these guys very easily; however, in my opinion if we're going to stop it... but show due process, nobody who doesn't get their way is going to say that they had due process, therefore you're still going to get a lawsuit from every single person who gets turned down who says I didn't get due process because I didn't get my way. So in just my illogical mind I look at it as if we just don't do this, right... you... they don't get due process and they sue okay? If we do do this, a lot of them don't get due process and they sue... in my opinion which is less of our time and which do we go for? And in my general opinion I don't like TVRs on Ag land and I'll tell you why... because there's no agricultural activity going on for most of these TVR,s and if I hear one (1) more time and I've said it over and over again that you can't farm and farm land then what are you doing getting farm land then, go get something else... do something else, go somewhere else because I can farm that land a lot better than you can. And for the bottom line argument, let's go here... I have a dream; I would like to have a farm. I would like to have a house on that farm; I would like to farm that farm. I would like to put food products on that farm. I would like to support... these guys says four (4) acres he supports fifty (50) people... I could support four thousand (4,000) people on four (4) acres because I am a true farmer, I know how to produce out of the land and I can do a lot more for this community as far as feeding it and giving jobs than somebody who has fifty (50) people he can feed on four (4) acres. I don't buy it... I have a dream too. My kids are Native Hawaiian and am I going to get my dream? Not likely because I didn't come here without enough bucks to buy this land, build myself a nice house, put Tommy Bahamas sheets inside of it and not concentrate of what I should have been doing which was farming the land in the first place. Aloha and mahalo. Chair Asing: Next speaker please. COUNCIL MEETING. - 30 - • July 28, 2010 Mr. Nakamura: Randy Naukana Rego. Next speaker is Lorna Nishimitsu, followed by LORNA NISHIMITSU: For the record my name is Lorna Nishimitsu. Four (4) points, before ordinance 864 was adopted, a TVR owner under the State law could apply for a Special Permit and any other use which was not outright permitted under the law. A TVR owner can under the Comprehensive Zoning Ordinance apply for a Use Permit for a transient vacation rental and any other use for which the land is not zoned under county law. All you're doing today is reinstating the right to apply for a Special Permit under State law to engage in TVR activity, if you adopt the amendments sponsored by Councilmembers Bynum and Kaneshiro. This does not give any TVR operator an automatic approval to continue operation or to commence operation but it does give them the right under State law to apply for a permit and they're entitled to that right to apply for that permit under Section 205-6 Hawaii Revised Statutes. We therefore respectfully request that you adopt the amendments that are pending before you and reinstate the right of these people to apply to the Planning Commission if the lot is less than fifteen (15) acres in size. or to the Land Use Commission if the lot is more than fifteen (15) acres in size to legitimize transient vacation rental. Thank you. Chair Asing: Thank you. Next speaker please. Mr. Nakamura: Next speaker is Randy Naukana Rego, followed by... oh that would be the last registered speaker. RANDY NAUKANA REGO: Aloha my name is Randy Naukana Rego from Waipake, haven't been here for awhile for several reasons... I'm just burnt out coming to these meetings but let's say this coming from a perspective of a farmer who's been farming Hawaiian land since pre- contact. I can't farm anymore, it is dead... my taro is gone, water is gone, because they built an agricultural subdivision above me which drains ninety percent (90%) through my lo`i which is now dead. So their dream has become my nightmare. Hasn't stopped, this started in 1991. When I saw this during that time, people would buy agricultural lots, signed farm dwellings... as Mr. Kawakami said in some of the meetings I saw on TV it states clearly what is allowed as a farm dwelling, if it's not on that list, it's not allowed. We saw that violations to this date... over twenty (20) years I've been fighting this, to this date. Go Waipake... show me where the farm is by the house that's right by me... what are they farming? They're farming houses up there, they're not agriculture. And in building their farm houses, fake farm houses they destroyed my farm for twenty (20) years, I don't even go to my land anymore because I'm so angry when I go down there. The water... pilau, lo`i gone... nothing... and I hear these people, they have a dream? I had a farm. I don't have a farm now because of the fake dwellings that are still in Waipake. Now you want to extend that to say now you can have your fake dwelling, now you can have a TVR on Ag land while I sit over there going... what about my land? What about my lo`i? What about my water? I don't have the money like many of them have where they can buy Ag land, build a house and don't even live there and then have other people come and rent. And I apologize to all you... this is twenty (20) years that I've been putting up with this and now I see TVRs possibly in Waipake... no way, no. You want to buy Ag land, you do agriculture. You don't build a mansion, plant a few trees... you do agriculture. That's what you're supposed to do and you definitely do not have destination visitor houses on Ag land, especially when you have locals down there getting damage from these subdivisions... `a`ole, that is not pono. And I'm sorry I am just frustrated with twenty (20) years of anger and seeing what happens... I was watching you guys on TV and I appreciate Ho`ike because many of the locals, we can't come here nine (9) to COUNCIL MEETING • - 31 - • July 28, 2010 five (5), I had to drive... you saw me, I had to drive all the way back Waipake take my wife so she can go work and I came back because it's important to me that this fiasco of the abuse on Ag land has to stop people... (Audience applauding) Mr. Rego: It has to stop. So that people who really do agriculture like me can get my agriculture back up. I love that, I can't do it for fifteen (15) years and it's funny because I see faces over here who have put me through hell in Waipake who are still here trying to advocate for these none agricultural uses and personally I'm sick to my na`au about it, twenty (20) years of this abuse, twenty (20) years of this blah, blah, blah... what you guys cannot enforce the farm dwelling agreement, believe me you ain't going to enforce the TVR why...I've seen it, I live it every day. Dump this bill and like... Mr. Figaroa said he had very well points to you... as the other lady said, she had points to you... this should not be allowed and we got to protect the agricultural land that we have now. As Mr. Kawakami said it was not allowed, it was not allowed and it shouldn't be allowed and you certainly don't make an ordinance to allow that to have that now. Mr. Nakamura: Three (3) minutes Mr. Chair. Mr. Rego: Thank you. (Audience applauding) Chair Asing: Can I have the next speaker please? Mr. Nakamura: No further registered speakers. Chair Asing: We don't have any other registered speakers but I will take whoever wants to come up. ELAINE DUNBAR: Elaine Dunbar. I had a deja vu, I thought I was in Maui listening to these testifiers today. I have never heard so much selfishness in ten (10) or fifteen (15) minutes and so much I, me, mines... it's appalling and when one (1) of them states... that TVRs are what makes Kauai, Kaua`i... now I'm really scared. What have you done Mr. Bynum? What the hell have you done? Chair Asing: Please watch your language. Ms. Dunbar: Well it's a place, okay... I'm sure a lot of us will visit. What I want to testify about today is the inappropriateness of Tim Bynum sitting on this matter. It's bad enough that he's had input on the bill, on the measure but the fact that he's going to be voting. He went on public TV... I mean a public radio forum and stated that he has a TVR on Ag land, now if he's saying that this is not true then I have to ask, when is he telling the truth. Is it on the radio or is it here at the Council? Do you tell the truth sometimes? Which is it... you get on the radio and tell everybody that you have a TVR on Ag land but now you're shaking your head no. So I say if you have a clear conflict of interest, you recuse yourself from the vote today. Because down the road, now think a little bit unselfishly, I know it's hard for a lot of the haoles on this island to do that... think a little unselfishly... the trouble you're going to cause for this Council, for the Attorneys, for the whole County... if all this has to be relooked at because of your lie. If it is a lie. And I'm sure that there's people looking into that right now, so come out with it, if you have a TVR or you want to blur the edges on whether or not it's a TVR, it'll all come out in the wash, I don't think you're honest. I don't want to COUNCIL MEETING. - 32 - ~ July 28, 2010 see you on this Council again. That's all I have to say, I want to see you recuse yourself now, today and that this County... the rest of the Councilmembers insist. Thank you. Chair Asing: Thank you. Tim. Go ahead Tim. Mr. Bynum: Yeah I want to respond, absolutely. First of all, I do not have a TVR, on Ag land, I never have, I never will... I never said that on the radio. Somebody this week wrote in a blog commenting on a blog, not a blogger but somebody doing a comment that I have a TVR, on Ag that is not accurate. I have no conflict here; if I did I would declare it. I and I appreciate Mr. Rego's testimony, I agree with almost everything he said because and so I want to answer that question to... what I've done since I've been on this Council and before is to strongly advocate regulation of TVR,'s, regulation of Ag subdivisions, I've tried to introduce bills... Chair Asing: Mr. Bynum... Mr. Bynum: Excuse me; I'll finish my statement please. Chair Asing: Well you can finish your statement but I will allow you to just answer the question... when you have... when we get into discussion, you may say whatever you want to say but that was just a question. Mr. Bynum: Okay, you're right. You're correct. Chair Asing: Answer the question and then we'll get back and when we get under discussion you may say whatever you want to say. Mr. Bynum: Okay that's fair enough. My conscience is clear, I didn't lie, I don't own a TVR, on Ag and I'll save other comments for later. Chair Asing: Thank you, with that... do we have anyone else? Yes, come up. MICHELLE HUGHES: Good morning Council and Chair, my name is Michelle Hughes and I'm here in support of Bill 2364. First of all I would like to say something that is in my heart and that is about aloha. I'm feeling very discouraged right now because I really, I am on this island because of aloha and I really believe that that is the spirit that should be guiding all of us in everything that we do here. So I'd like to level the playing field a little bit and just say I congratulate the County of Kauai because I think we... you all have done a very good thing here and that is to get control of what was an unregulated industry. No one is debating, that I know of any way... is debating the fact that regulation was needed for transient vacation rental business; however, we were the Ag TVR, owners and their vendors and their associates were harmed by ordinance 864. And all that this bill is trying to do that I can understand and thank you Tim and Daryl for helping in this regard is to reinstate a right that was taken away and it is a State law 205-6 and because of that you are only trying to help the TVR owners who were paying their taxes, were lawfully in existence as they knew it at the time based on the interpretation of the statute and the county's interpretation of the law. So we would like the opportunity to be able to apply for a Special Use Permit which will allow us on a case by case basis to tell you our story and I think in some cases you're going to find that it is a very compelling story and that we are trying to spread aloha and that it is very important to us that the visitor community and industry on this island be honored and that we are doing our little share to be the ambassadors of aloha in our own little way. The other issue is that we do employ hundreds and hundreds of people and as you've heard today many of those people are being affected negatively COUNCIL MEETING • not only by the TVR, issue but by consider that these people will be want to thank you very much for today. Thank you. - 33 - • July 28, 2010 the economy. And I really plead with you to helped by the passage of this amendment so I your hard work and I hope that this will pass Chair Asing: Thank you. Is there anyone else in the audience who wants to speak on this? Mr. Taylor. KEN TAYLOR: Chair, members of the Council, my name is Ken Taylor. Before I get started I would like more clarification on the situation that was raised earlier but... I past... or had entered into the record which I think you all received is a copy of names who signed a petition in the last few days and I bring your attention to the... starting from the back the fourth (4th) page in, at the bottom of the page it's numbered number seventeen (17) or sixty-seven (67) and this gentleman makes some comments that I don't agree with all of his comments but it did... the issue that when he says that Councilmember Tim Bynum has a TVR, on Ag land, it raised to my issue is that... is this a realty or not and I chased this gentleman down and he told me that he had heard Tim on, make this comment on the radio... now I don't know that that happened, I don't know if Tim has a TVR, but since it's been raised not once but here in this document and earlier today, it seems to me that the legitimate thing for the Council to do at this point would be to defer this matter and come back with a report, investigating this and clarifying the air. I'm not saying that Tim has a problem or he doesn't have a problem but I think more than this individual, the earlier individual, myself raising this from this comment and Tim denying it... this is all fine but reality is, it should be a thorough investigation and some documentation that is there or isn't there any validity to this and I think anything short of that would be a very big mistake so I hope that you will at the end of deliberations today defer this item until we have a full report on, on this matter. And I don't think it's an issue of does he or doesn't he. Just get the report. As far as the bill today I am speaking in opposing the bill. When I went back and looked at 205-6 and read some of the information that puts that in place, it seems to me that in order to take... use 205-6 to use that you have to be in compliance with 205-4.5... Mr. Nakamura: Three (3) minutes Mr. Chair. Mr. Taylor: And without that... Chair Asing: You want to kind of finish up? Mr. Taylor: I'm sorry? Chair Asing: You want to finish up? Mr. Taylor: Yeah I'm working on it. Chair Asing: Go ahead. Mr. Taylor: Thank you. Anyway, in order to take advantage of 205-6 you have to be in compliance with 205-4.5 and short of that there is no, there's no way to move forward and again I think that you're wrong in trying to move this forward at this time and I think that it's in the best interest of the community to deny moving forward with this (inaudible). Chair Asing: Thank you. Yes, Councilmember Kaneshiro. COUNCIL MEETING - 34 - ~ July 28, 2010 Mr. Kaneshiro: I have a question for Mr. Taylor. So you're asking this body to defer this matter and in the circumstances where someone blogs a bunch of bull about Mr. Kaneshiro, we would have to defer that matter pending before the Council also? Mr. Taylor: I'm sorry? Mr. Kaneshiro: Is that what you're asking? Mr. Taylor: I didn't understand your question. Mr. Kaneshiro: Simply I'm asking... you saying to defer this matter because of Mr. Bynum's particular instance of a blog... so if there's a bunch of bull about Mr. Kaneshiro... Mr. Taylor: A bunch of bull? Mr. Kaneshiro: On any... on any issues of what we are debating... are you asking this body to make those kinds of decisions to defer the issues until the bull is proven that it's not right or wrong, is that what you're saying? Is that what you're asking me today? That's what I heard from what your request came after stating his position and what you read on a blog. Mr. Taylor: This isn't a blog, this is a... this is a... a petition that was circulated on the Internet. Mr. Kaneshiro: So if a petition is circulated a bunch of bull about me... and even if I'm here trying to make a decision... we should... I have to ask this whole body to defer the decision until the bull is even proven right or wrong? Mr. Taylor: First of all... Mr. Kaneshiro: Is that what you're asking the body to do? Mr. Taylor: We're talking about a structure, not bull. And Tim happened to share with me after last week's meeting that he had a violation issued from the County that hasn't been dealt with and he wasn't sure how he was going to deal with it so... if that is your bull, I think there's reason to say in this particular case and I'll take it case by case and if your bull has enough substance, we will discuss that at that time but right now there is some substance to the issues that was raised. I didn't raise this issue, it came up here, it came up earlier today... Mr. Kaneshiro: Mr. Taylor? You stated that he has a conflict because he has a TVR, on the land, what I heard from Mr. Bynum is that he said he doesn't have a TVR on the land but you're still requesting for us to defer this matter until we investigate whether he has a TVR, or not. Mr. Taylor: That's just correct and the reason... the primary reason for asking for that and... Mr. Kaneshiro: And that's the same reason... Mr. Taylor: He has, he has a violation from the county on his property... now if that is, wants to be overlooked by the Council so be it, that's your choice but I think it's wrong. COUNCIL MEETING ~ - 35 - • July 28, 2010 Mr. Kaneshiro: You know... so let's say that I... somebody wrote a... something like this that says I have a TVR on Ag land which is all bull and I come to you and say... and I make it public I don't... we still want to defer this meeting to have an investigation whether I do or not? That's what I heard you testifying for us to do and that's the question I'm asking you. Mr. Taylor: The only reason I'm asking in Tim's case is... Mr. Kaneshiro: I'm not asking you about any violations... Mr. Taylor: Is because of what he told me last week... Mr. Kaneshiro: I'm not asking you about anything else... I'm asking you about a conflict of TVRs or not. Mr. Taylor: Does he or doesn't he? Let's get a small... it shouldn't take very long to investigate that and get back to the Council... Mr. Kaneshiro: weeks. Mr. Taylor: Chair Asing: Mr. Taylor: Mr. Kaneshiro: (2) weeks before it con When you defer this meeting... it'll take two (2) Full report... Okay hang on.:. Full report. Remember that. If you defer this meeting, it's two ses back again. Mr. Taylor: That's okay. Because it will give you adequate time to do a report. . Mr. Kaneshiro: That's okay... I'll save my statements when the meeting is called back to order. I'm done with my questions for Mr. Taylor. Chair Asing: Thank you, with that... Councilmember Furfaro. Mr. Furfaro: Thank you Mr. Chair. First of all this body is not the body that takes the formal complaints and accusations. We need to understand that the County of Kauai has an Ethics Board that it should be put in writing if you are believing what is in this documentation and that's where the process goes, to the Ethics Board in writing. If you're not happy with that, then there's the Office of Disciplinary Counsel as well, it's a State board, they will respond to complaints that address legal issues that are framed and they will accept your complaint in writing but I just want to make a short statement here... Mr. Bynum has said to us that he does not have a TVR on Ag land and that is what he has stated. This body is not the investigative power on a written complaint Ken. In all fairness to Mr. Bynum, we do have a process though... and it is called the Ethics Commission and at the State level it's called the Office of Disciplinary Counsel. I just wanted to share that with you. Mr. Chair thank you for giving me that time. Chair Asing: Thank you. With that Councilmember Bynum. Mr. Bynum: Hi Ken. Mr. Taylor: Hi. COUNCIL MEETING. - 36 - • July 28, 2010 Mr. Bynum: Let me state for the record, I don't have any kind of TVR on Ag or on any other land, I have never had a transient vacation rental for one (1) day in any way shape or form. Perhaps you'd like to read the entire statement that an individual put on the Internet just for the record? Mr. Taylor: You can read it. Mr. Bynum: Excuse me? Mr. Taylor: You can read it... Mr. Bynum: I choose not to. Mr. Taylor: I said it in the beginning. Mr. Bynum: Um but and... I thank Mr. Furfaro for outlining that if anybody wants to investigate me in any way shape or form they're free to, if they follow an appropriate and legal process. Mr. Mickens filed a Ethics complaint against me in the past that got... went to the Ethics Board and went through the proper process and so I welcome that because I think I'm a pretty straight forward and honest guy so I'm not worried about that. What I am worried about is that the rhetoric on this issue is so far over the top that people start trying to use any kind of mechanism they can to subvert the work that we're sworn to do here at the Council. So I'm disappointed that you choose to use that same kind of tactic. So... thank you. Mr. Taylor: I just in closing would say that... Mr. Furfaro: Point of order... Mr. Taylor: Mr. Furfaro: his questions... Chair Asing: Mr. Taylor: thank you. Ms. Kawahara: Chair Asing: (inaudible) He does not have a closing... Mr. Bynum answered Hang on... Moral obligation to take care of the issues at hand, I think there wasn't a question. Thank you. Can I have a next speaker please? RON AGOR: Aloha everybody, for the record my name is Ron Agor. I'm a local guy, I don't have a TVR, I'm not working for anybody who has a TVR. I don't believe that this bill is a fair bill and with regards to the last comment on the bull... I go through this weekly on the State level, the North Shore and I know Tim Bynum and I know for sure he doesn't have a TVR on his property, I just wanted to say that but I do support the bill. Thank you. Chair Asing: Thank you. Is there anyone else who wants to speak? Come up please. COUNCIL MEETING • - 37 - • July 28, 2010 THOMAS BEBE: Good afternoon Council, my name is Thomas Bebe and I do not own a vacation rental property but I do work for one. You heard my testimony before and in this regard today I just would like to thank you for the opportunity to give honest hard working property owners the opportunity to continue the work that they have been doing in good faith for twenty (20) or thirty (30) years. I would like to apologize for other members of the audience and residents of Kauai who I believe are making personal attacks and trying to make this a (inaudible) issue between whether you like development, don't like development... whether you have what they consider a lot of money or don't, whether you... you know if your land is on Ag land the premise seems to be that you better darn well farm it and every farm square inch of it. Well we all know that most of the land on the island is Ag zoned because it's not in residential areas. So I just feel like this issue has gotten... it's been crazy with emotions and we saw disgraceful behavior and I just hope that you all consider the people who have been working for many years under what they believed and what the state (inaudible) a proper way and that thousands of dollars have been willfully accepted by the State and tax dollars and now the same people who have been paying this, those dollars are being told that there's a clause and some law that says that it hasn't been allowed and they should have never done it, and they should have never given all that money and they should have never run this honest business and now it's gone. So I thank you for your time and I understand that you have a difficult task. Chair Asing: Thank you. Is there anyone else who wants to speak? BARBARA ROBESON: Good afternoon Mr. Chair and Councilmembers. Barbara Robeson for the record. I'm again today speaking on behalf of protect our ~~ neighborhood `ohana which is comprised of citizens, voters and residents in Wainiha and Ha`ena. My comments that I'm going to be referring to have to do with the bill that was passed out before the amendment so when I reference, that's the one I'm coming from because the one that was passed out with the amendments didn't include what I'm talking about. There is within this bill 2364 proposal to delete language that requires compliance with State and County laws and that is on page three (3) section four (4) and then it says 817-10 item (c) and that's that bracketed language there that says the effective date of this ordinance and was in compliance with all State and County land use and planning laws including but not limited to HRS Chapter 205, the Comprehensive Zoning Ordinance, Special Management Area, Flood Plain Management, and Shoreline Setback laws at the effective date of this ordinance up to and including the time of application for a nonconforming use certificate. So my first question is we're still unclear as to what the motivation behind this bill is and what's the reason for that language being removed from that bill. By removing the language to comply with State and County laws, we're wondering if this is consistent with the Kobayashi opinion and to paraphrase that the opinion said if you don't specifically spell out something that's in an ordinance, you can still go ahead and do it... so in other words by removing the language then that would mean to me that you wouldn't have to comply with the law. Now the compliance with State and County laws besides what was read in here, there's two (2) State and County laws that come from the Federal law, the SMA comes from the Coastal Zone Management and the Flood Management comes from FEMA and the National Flood Insurance Program. For example, concerns about compliance with the National Flood Insurance Program, the Federal law... we as protect our neighborhood `ohana, we raised these issues, I think it was November or December of 2007. Again we made a presentation January 08 to the Council, we had a slideshow and we raised the issue of flood compliance with transient vacation rentals and since then we have given a variety of testimony it include and voicing that concern again and again about jeopardizing the community eligibility for the National Flood Insurance Program because of noncompliance with the Federal COUNCIL MEETING - 38 - • July 28, 2010 Program. So a few more questions... does removal of the cited language further jeopardize the county's participation of the program and under 44(cfr), could the program be suspended? Would the removal of the language of the bill affect the current FEMA inquiry in the potential violations of the National Flood Insurance regulations? We urge you to amend the bill with these really minor little changes by removing those brackets and leave those deleted language in the bill. Mr. Nakamura: Three (3) minutes Mr. Chair. Chair Asing: Thank you. With that, Councilmember Furfaro. Mr. Furfaro` Barbara thank you for the testimony. I think in previous presentations to the Council you know I really shared with you that some of the challenges in this bill there's certainly some of the uncertainly in the laws. And I have a responsibility to watch out for (inaudible) strings of the County of Kauai. I did answer you on this particular removal as it was presented to me and I referenced the Waikiki Market Place case. Ms. Robeson: Right. Mr. Furfaro: And in the Waikiki Market Place case the reality basically says that we could not and I'm just going to frame it quickly, we could not challenge someone's ability to apply but we certainly could enforce zoning and building codes, kind of after the fact (inaudible) but to base it on not letting someone apply, there has been caution in the air from my pursuing that question and I just want to reiterate that I answered you the last time that way... Ms. Robeson: Yes you did. Mr. Furfaro: And I'm a very cautious individual so. Ms. Robeson: Well we're just wondering if we have to comply, why is it being taken out of the bill so to reiterate our concern. Mr. Furfaro: I understood that but the reality is, I'm being told that after the fact the reality is we can pursue by zoning violations, we can pursue a building codes... it behooves these individuals to make sure they have compliance prior to them even having an opportunity to apply and I'm not on one (1) side or the other, I'm on the County Council recognizing some of my responsibilities. And right now that's the same answer I gave you a couple weeks ago and I pursued it, believe me... to get a better understanding of that and that's where it's at. Ms. Robeson: I'm pursuing it too. Mr. Furfaro: I understand... we're both pursuing it. Thank you Barbara. Chair Asing: Hang on Barbara, Councilmember Bynum. Mr. Bynum: And I agree with what Councilmember Furfaro said but I'll just try to say it a little more simply because almost all of the testimony and discussion for the last several weeks has been about Ag land and this is more about residential. Ms. Robeson: Yes, correct. COUNCIL MEETING ~ - 39 - ~ July 28, 2010 Mr. Bynum: And the, and so I'm going to answer it more simply... just because we remove that language doesn't mean people don't have to comply with the law, those laws are in place, they exists. If they're violated, I hope they're enforced, they should be. There should be corrections and I think the reason why we haven't had a lot of discussion about this is, unlike Ag land where I believe... what is legal and what isn't, is not clear at all and is interpreted differently depending on what county you're in or who you talk to. The law about this is very clear and anyone could look in HRS 464 and get the HRS or go on the Internet and it's very clear it says you know you can't phase out these things retroactively and you can't use code violations as a reason to. So to me it's real clear so that is out of this, that language came out because we're not allowed to say hey because you had a code violation, you can't do this use and to me that... unlike the Ag where we can debate until the cows come home and we'll never come to an agreement, that to me is very clear and I'd invite anybody to look at 464 and the notes. And the notes reference Kauai State Supreme Court decisions so this bill in my mind is very much an attempt to make sure the County of Kauai correctly applies the law, not circumvent it but apply it. Ms. Robeson: Well I guess our concern rises above the code violation into Federal violations. Mr. Bynum: Right and I think that's being addressed separately and very specifically. Ms. Robeson: I hope so. Mr. Bynum: Yes. Mr. Furfaro: Thank you Barbara. Chair Asing: Thank you. Is there anyone else who wants to testify? CAREN DIAMOND: Good afternoon Councilmembers, Caren Diamond. I'm speaking for myself and Protect Our Neighborhood `Ghana. Protect Our Neighborhood `Ghana is composed by the residents of Wainiha and Ha`ena. The residents that have lived there for a long time and what, and what you've done and what is happening is we're making two (2) different classes of citizens, two (2) different classes as residents, two (2) different classes of landowners... so there's the one (1) class of landowners that is going to be able to... that will legally be able to turn their residential property into a commercial vacation rental, a resort. And then you'll have the landowners that didn't rush to do that maybe because they were raising families or because they actually lived in their homes, because they were actually residents... and those won't ever be able to ever do that. So basically you have the people who have been, who have pushed the issue are going to get approved and this permit that you're granting people goes for life. It's not like it goes just for just one (1) individual, these go for life. And you know over and over again we testified before you what were the... when Planning Department was implementing the ordinance what did they use to give people their approval and we still haven't been able to find out, that's still unknown and so as you're looking to expand this ordinance... it's kind of like a bad kid who keeps being bad. And then you just give them more and more... and you know we're kind of hearing that well things are going to get better and we're supposed to trust that but when you've taken out the things in the bill that make the Planning Commission or the Planning Department be able to do a good job, I don't see how things could get better. If you take out inspections then of course you can't see if there's flood violations and maybe that makes you feel better that you didn't see it. But I don't possibly know COUNCIL MEETING - 40 - ~ July 28, 2010 how you could enforce if you don't see and if you give a permit and allow people to have this nonconforming use permit for visitors to stay in that possibly flood violation unit that you did not see because you did not want look then certainly the county has a lot of liability when we have a Tsunami or other things like that that are different kinds of liability than landowners threatening you with a lawsuit if they don't get their permit. One of the saddest things I heard today, you know one of the persons who testified here said that this was going to be the first step to getting agriculture actually on agriculture land and what a bazaar situation that someone thinks or that the county that the only way that you would be able to get control over that is to allow agriculture land to be turned into a resort or to be given a legal permit to have it be a resort. I can't imagine that this Council thinks that it's okay to have the entire North Shore be a resort because that's what's happening and if you look at the advertisements, they tell you, you know for vacation rentals you can look by area now, you can look by visitor destination area and Ha`ena has its own visitor destination area, so does Hanalei. Mr. Nakamura: Three (3) minutes Mr. Chair. Ms. Diamond: Yet nobody ever came before you to ask for a zoning change, not ever... not ever. Now I hear from the Ag plan people the same thing that they've been doing it and they want to keep doing it but did anyone get a use permit? I don't understand why... Chair Asing: Caren, you want to wrap up please? Ms. Diamond: I will wrap up, yes. I don't understand why 464 is being used when 464 speaks to residential. You can't amortize residential uses but this is clearly a commercial use and I asked the county to look beyond the slim excuses that we're hearing at the moment and I also want to answer the paying taxes thing... when people pay taxes on their vacation rental thing... they pay it on what they earned. That was something that they already got, they earned that money and paid their fair tax on it. Nothing ever entitles you to something into the future because you pay tax on it. And I just want to end with... you know when you... the Real Estate Agents, and Real Estates professionals says that your property increases forty-six percent (46%) in value as soon as you get the TVR, distinction on it and so if we ever look at having our agriculture lands be able to be farmed, I don't think we... that's ever going to happen. Once you made them resort, it's far more easy to farm tourist than it is to farm vegetables and it's far more profitable as well. And I just want to end with... I'm really disappointed this week and I'm sure that many of you heard... Chair Asing: Caren, you want to wrap up? Ms. Diamond: I will wrap up... thank you... that three (3) County Attorneys visited a Councilmember and I'd ask that that Councilmember to respect and recuse himself not because I think he did anything wrong, I don't but I actually think any, any impropriety or anything that looks like impropriety on this bill is really bad or on any bill. And... so I'm really disappointed, I know there's a lot of political pressure and the politics has driven this and as a citizen I just wanted to say... it's very sad and sorry. Chair Asing: Thank you. Councilmember Furfaro. Mr. Furfaro: Yes Caren thank you for your testimony. Just as I shared with Barbara the second time on this pursuit of questions as it relates to the ability for people to apply for their TVR, use as it relates to taxes collected from the State and GET and the State on their TAT and so forth... I just wanted to let you COUNCIL MEETING • - 41 - • July 28, 2010 know that I had pursued a request with the County Attorney regarding the issues with FEMA and the Flood Insurance and I do want to let you know and that's what I. just checked with them to let you know that we did get a preliminary response. This Council will get briefed in the very near future but your question did not fall on deaf ears. The pursuit of those recommendations or compliance have been pursued. Ms. Diamond: Thank you. Mr. Furfaro: Thank you Mr. Chair. Chair Asing: Councilmember Bynum. Mr. Bynum: Hi Caren. As usual when you testify you say a lot of interesting things and I'll just start with where Councilmember Furfaro came from as that one of the things that I really like about the public process is that we learn a lot and a lot of us do follow up .on the things we hear and try to address them because that's our job. But I do want to address two (2) things that you said one (1) was about creating a special class... I think that's an accurate way to put it. That people may get a use permit because we have said no more and so that... will be probably be very valuable if you get to continue but it's also not uncommon in government. We just passed a Lihu`e Town Core Plan that changed the regulations about what you can do on Rice Street and it said we're not going to allow a new car dealer on Rice Street but we're also going to allow Kauai Toyota to continue as long as they choose to unless they abandon that use and if they abandon it for a period of time, they can't come back. That's exactly what we're doing with TVR,s. We're saying you get grandfathered because we changed the rules... and if you abandon that use for a period of time, you lose it and you can't get it back. Ms. Diamond: But I'd ask you to show me the rule that said that they were legal. Show me that statute that said... Mr. Bynum: That's the debate isn't it? So this bill says you have an opportunity to go through the mechanisms that we have to legally determine whether you are legal or not. So... that's what we're trying to do, we're trying to give people an opportunity to do the due process. The bill says you must comply with 205-6 and Councilmember Kaneshiro and other Councilmembers have added some additional things you know that we're trying to go with the spirit intent... for the best of our ability given the parameters under the law... Ms. Diamond: But you know number... Mr. Bynum: I don't make the State law and I don't make... I don't do the Supreme Court decisions but I am required to honor the State law and the Supreme Court decisions. Ms. Diamond: If I just may on page two (2) at the bottom the new language... Chair Asing: Caren, Caren... Ms. Diamond: Says or other circumstances... Chair Asing: Caren and Councilmember Bynum... I will not let this exchange... Ms. Diamond: Sorry. COUNCIL MEETING - 42 - ~ July 28, 2010 Chair Asing: Go back and forth I think you said your piece. You have... I have given you an opportunity to testify... Ms. Diamond: Thank you. Chair Asing: And... Ms. Diamond: I am done. Chair Asing: And so I will not engage in any debate between Council and yourself so with that, Councilmember Chang. Mr. Chang: Thank you Chair and thank you Caren. For the record I guess the reference about a Councilmember meeting with Attorneys that would refer to myself, so for those of you don't, that don't know out there that there was a blog that was out there, I am the Councilmember that had the Attorneys come over to my place. It was given... ah talking about opinions. I feel that I have met with yourself several times, many phone calls along with Barbara Robeson, we had breakfast together just like everybody else I want to engage in this process. I had asked for additional time in May because I don't know the history and I have rapidly tried to learn the history, number one (1). Number two (2) I believe the gentleman that started the process of getting involved with the blog is not here and I was looking forward to addressing that person because in less than aforty-eight (48) hour period, there was a minimum of six (6) to eight (8) conversations. I've made myself available and to make a long story short, on Friday evening at 10:15 p.m., he shows up at my house on the courtesy and the aloha of my privacy to speak to this gentleman longer than I sought the opinion of our Attorneys and brother- brother... talk story... how's it-how's it... and I felt that I was engaging and I was talking about opinions and agreeing to disagree and that's exactly what happens. I will not recuse myself from this very, very, very important vote. The easy way out for me... fine let me recuse myself, that's the easy way because half the people are going to be happy, half the people aren't going to be happy, but I was elected by my people and the constituents to do my job and to vote on this issue. And I will vote on this issue, I did not do anything wrong in my opinion and I will not recuse myself from this very, very important vote, thank you very much. Chair Asing: Thank you. With that, is there anyone else that wants to speak on this item? PHIL JONES: My name is Phil Jones and I want to just say that I'm in support of this bill. I've listened to everyone many, many meetings over few years and it's a shame to me that we've... it's seems to be against farmers and against people who are business people and some are rich and some are poor. I think for everybody on this island we're all wanting to stay here and we all working hard to stay here and both are very important. And I think this is a nice step to clearing things up and giving people that had followed the laws in the past the right to do what others have done in the past so I just wanted to say thank you all for sitting through this through the many years and I know it's a very tricky topic but I think this is the right thing to do. Chair Asing: Thank you. Is there anyone else who wants to speak? Anyone else who wants to speak going once, going twice... no I,believe you had your opportunity to speak, I think I let you go over the time limit... is there anyone else? If not, I'll call the meeting back to order and with that Councilmember Bynum. COUNCIL MEETING ~ - 43 - • July 28, 2010 There being no one else to speak on this matter, the meeting was called back to order, and proceeded as follows: Mr. Bynum: With your indulgence before we get into discussion about the bill, I'm really sad that the rhetoric over the last forty-eight (48) hours have escalated to the point where now we know two (2) Councilmembers have had unfounded accusations and then people in the public say well because these people said something in a blog that you know we should derail this, it seems a little desperate to me and I appreciate Councilmember Chang and myself you know... if people want to follow up with those unfounded accusations in an appropriate way that's fine but you know to see the degeneration of suability is sad to me so thank you. Chair Asing: Thank you. No, I believe I gave you an opportunity; I don't want to start extending it further. With that, the meeting is called to order. And is there any further discussion? Ms. Kawahara: Are there going to be presentations? Chair Asing: Pardon me? Ms. Kawahara: Are there presentation? Chair Asing: Yes. Why don't we... Ms. Kawahara: I'd like to save my discussion for after that. Chair Asing: Why don't we take a short recess and then I'll turn it over to you and I'll make my presentation. Maybe we'll take a caption break? We're going to take a ten (10) minute caption break now, thank you. There being no objections, the Council recessed at 3:12 p.m. The Council reconvened at 3:33 p.m., and proceeded as follows: Chair Asing: Good afternoon everybody. Mr. Chang: Good afternoon. Chair Asing: The meeting is now called back order. At this point I'm going to turn over the meeting to the Council Vice Chair, Councilmember Furfaro as I will be making a short presentation. With that Councilmember Furfaro. (Mr. Asing, the presiding officer, relinquished chairmanship to Mr. Furfaro:) Mr. Furfaro: Chair, you have the floor. (You guys have a spot for me over there if I moue because...) Chair Asing: (Am I on? Thank you) Thank you, what I'd like to do is... I would like to make a short presentation and before starting my presentation I want to make some comments regarding both the TVR and Farm Worker Housing bills... I want my colleagues on the Council, the County Attorneys, the Administration and the public to know that I respect each and every one of their research, analysis, views and final opinions. The following is a result of my research, analysis, views and final opinion on the subject. My presentation today will focus on five (5) primary areas. The first area will be Chapter 205 of the COUNCIL MEETING ~ - 44 - ~ July 28, 2010 Hawaii Revised Statutes, that is the controlling mechanism for the use of Ag designated lands in the State. Two (2) the State Attorney General's August 19, 2009 opinion letter to Sandra Kunimoto who is the Chairperson of the State Board of Agriculture. Third (3rd) the Land Use Commission rules. Fourth (4th) Anthony Ching the former Executive Director of the Land Use Commission's memo regarding transient vacation rentals on agricultural land. Five (5) Judge Ronald Ibarra's decision in the Hokulia case. And lastly, I want to show you and give you some examples of vacation rentals as they exist on Kauai today especially in the area that we are most concerned because of the numbers of vacation rental in the area and that is the North Shore area of our island. With that, this map here where most of the vacation rentals are located there are vacation rentals on Ag land throughout the entire island, but I show you this only to let you know that on this particular map here there are forty-seven (47) vacation rentals in this area alone. The forty-seven (47) that I'm going to make reference to are not the only vacation rentals. They are the vacation rentals that have been verified, in other words we know they are vacation rentals in all of these areas, so these purple here represent the areas, that's the size of the lot. The lot ranges anywhere from the small quarter acre parcels on Ag land to quite large areas like twenty-four (24) acres of land... where vacation rentals exist. In this particular block here the only reason it's blocked wide, as wide as it is here is because there are five (5) in this area and they're so close that it was blocked in this map. (The next slide please) As I said earlier this is the State Attorney General's opinion. I use this because he is in my opinion the highest ranking legal official in the State. So I put quite a bit of emphasis and credibility on the State Attorney General's opinion and I want to just quote some portions of the opinion. Let me pull out... this happens to be on page four (4). Now you will notice it's again making reference to 205, so when I said earlier that I'm going to cover 205, 205 is being covered by the State Attorney General's opinion and that's one of the reasons I'm using it because he makes direct quotes from that opinion. And let me just read this... permissible uses within the agricultural districts, (a) within the agricultural districts all lands with soil classified by land study bureau detail land classification as overall master productivity rating class (a) and (b) shall be restricted to the following permitted uses. Now the following uses were really the eighteen (18) listed ones there. In other words on the (a) and (b) category, if it is not listed, it's prohibited. Not listed (a) and (b), it's prohibited, that's what the law says. Uses not expressly permitted in subsection (a) shall be prohibited except as the uses permitted as provided in section 205-6 and 205-8 and construction of single family dwelling, family units on lots existing before and this is very important... before June 4, 1976 any other law to the contrary. Reason this is important is this is when the State law came into effect, June 4, 1976. (Take the next one please) Now... within the agricultural district all lands with soil classified by the Land Study Bureau details land classification as overall master productivity rating (c), (d), (e) or (u) shall be restricted... shall be restricted to the uses permitted for agricultural district as set forth in this section here 205- 5(b). Let me read you what it says, may a County allow a Bed and Breakfast or TVR, within the single family... within a single family dwelling on a agricultural lot existing prior to June 4, 1976 or within the farm dwelling or other structure on agricultural lot created after June 4, 1976... if there is no agricultural use activity. Here's what it says, in the absence of specific facts, however, we cannot... cannot determine whether the Land Use Commission could find a particular Bed and Breakfast or TVR, to be compatible, to be compatible with a farm dwelling or plantation community subdivision. We are not aware of any justification for a Bed and Breakfast or a TVR, as being compatible... compatible with any agricultural use or activity. I want you to kind of hold this in mind... Ag use, Ag use... compatibility, compatibility... Ag land, Ag use... Ag land, Ag use... Ag land, Ag COUNCIL MEETING • - 45 - • July 28, 2010 use... now Section 205-5 provides that the counties may further define the accessory, again accessory, agricultural uses... again Ag, think Ag use, Ag use, Ag land, Ag designation, Ag use. Accessory agricultural uses and services described in Sections 205-2 and 205-4.5; however, we believe that counties cannot, cannot allow a Bed and Breakfast or TVR, on agriculture lands under this section, and again I'm making reference to where is this coming from? It is coming from the State Attorney General's Office and this is his opinion that I'm reading. Because a Bed and Breakfast and a TVR, are not similar to any of the listed items, any of the listed items under 205, they are not, not... bona fide agriculture... again think agriculture... Ag land, agricultural... don't think about anything else, Ag land, agriculture. Right, if you can tie in the agriculture then you're okay but tie it in. Agricultural services or an accessory again to what, agricultural uses. And the counties may not allow them on agricultural lands under section 205-5(b). Again who is saying this? Coming from the Attorney General's Office. In summary, we are not aware of any justification by which a county may allow a Bed and Breakfast or a TVR, on agricultural lands as permissible use under section 205-2 (d), 205-4.5 (a) or 205-5 (b). I want to go back and read that again. In summary, we are not aware of any justification by which a county may allow a Bed and Breakfast or a TVR, on agricultural lands as permissible use under these sections. (next) Let me read this... in Attorney General's opinion 6337 this Department found that 240 acres of agricultural land to be used for commercial, industrial and residential uses was not a proper subject for a special permit application. The opinion stated special permit petitions are intended to allow certain unusual and reasonable... unusual and reasonable... tied to what? Agriculture, agriculture, think about it Ag land agriculture use. Uses within the agricultural and rural districts. Its purpose is to provide a landowner relief in exceptional .situations that would not change, would not change the essential character. Change the essential character of the district. Agriculture again, agriculture... don't put something else. That may not change the essential character of the district nor be inconsistent therewith and is basically (inaudible) to a variance. Its. function is not to effectuate a boundary change or create a new district; such powers are legally vested in the Land Use Commission to be exercised under a different procedure and different criteria. (Next) Except as otherwise provided in this Chapter uses not expressly permitted in this section here, and we're looking at the Hawaii Administrative Rules. (Next) Now comes a letter and this was in June of 2007 and at that time we have here former Councilmember JoAnn Yukimura writing a memo to Anthony Ching. Anthony Ching of course was the Director of the Land Use Commission... per your question are vacation rentals allowed in the State Land Use agricultural district, that is the question that was posed by Councilmember Yukimura. The response... my response to your question is that Chapter 205 HRS clearly, clearly prohibits overnight accommodations such as offered by vacation rentals in the State Land Use agricultural district. Thank you. I'm now going to (you want to go back again, okay) this is the Hokulia case and this is the ruling made by Judge Ibarra and I want you to... I want to use this and quote a number of areas in this decision, with that. Now Hokulia first of all is a subdivision, I believe it was twelve hundred and fifty (1,250) acres in size; it is not a small subdivision. It's a huge subdivision. Now I want to start by saying this is what Judge Ibarra is saying now and it is lengthy, it is not simple. Let me read it... despite being a located primarily on agricultural land, Hokulia is a private luxury resort residential subdivision. According to Hokulia sales brochures, Hokulia is designed to be the most private Oceanside, golf community in the world. According to Hokulia marketing plan... the general goal of Oceanside is to establish Hokulia as the finest Oceanside residential golf communities in the Hawaiian Islands. By the way this is Judge Ibarra's ruling. Prices of the Hokulia lots range from six hundred and fifty thousand (650,000) to two point five million dollars, COUNCIL MEETING ~ - 46 - ~ July 28, 2010 these prices will render agriculture on adjacent properties non-feasible because those land prices will inflate the value of adjacent properties and at a minimum discourage agricultural use of such property. We're going to end up losing that too. This increase in prices will also result in an increase in land taxes and consequently the cost of production for the farmer within the project and the surrounding agricultural lands outside the project, so the concern is not just Hokulia by itself but Hokulia and the adjoining properties. In 1994 addressing Oceanside request for advice on the State Land Use Commission declaratory ruling on the project known as Crazy Horse ocean side Attorney Kristine Low advised, Crazy Horse happens to be a developer on the Big Island and it was more rental units and it was denied. So we won't go into that decision... in its declaratory order the LUC ruled that a dwelling situated on land located in the State agricultural district must be a farm dwelling. Must be a farm dwelling, please remember that must be a farm dwelling because I'm going to show you some dwellings and I want you to think farm dwelling when you look at this. Again I'm going to read it... in its declaratory order the LUC ruled that a dwelling situated on lands located in the State agricultural district Kilauea and all of the blue that I showed you is that district also. Now (go back again... let me finish reading that) the LUC ruled that the State Land Use law preempts, preempts any county law, any county law, ordinance or rule that authorizes any residential dwelling as a permissible use within the State agricultural land district. Conclusion of law... to the extent not expressly contradicted by these conclusions of law the previous findings in fact of the conclusion of law filed. on August 2001 and March 17, 2003 regarding the trial... I won't read all of this... I don't think so but let me just do this, this Court previously found, this Court previously found the primary use and activities within the agricultural lots are not agricultural. Furthermore the agriculture use and activities is insubstantial. What they tried to do in the Hokulia case, they used this big units that they were going to build for so-called millionaire houses, they used an area that they created this farm lot and what they decided to do was to use this farm lot and say these big, large houses their farming activity is on this big farm lot, that's what they were trying to do. The Judge said "no," inconsequential, it is an attempt to circumvent the law. The Court further concluded that pursuant to Hawaii Revised Statute Section Chapter 42 (j), Hokulia CCR are nonbinding on a Hokulia agricultural lot owners, and I won't read the rest. Let me just read this one, the feasibility or viability of agriculture is a relevant, relevant again, agriculture consideration in evaluating whether use of agriculture land will comply to HRS Chapter 205. While the statute does not require profitability, any analysis must include the cost of operations including land and infrastructure cost otherwise any de minimis agricultural activity will be able to satisfy the restriction of this chapter. In other words if you had something minimal and you're going to call that agriculture then maybe one (1) horse is agriculture, that is what the Judge is making reference to. When you start using terms and meanings that you can take small agriculture things and say but as long as I have one (1) horse, that's agriculture... so I qualify. Again reading from his ruling, the LUC regulation supplement the statutory requirements of HRS Chapter 205. The permitted use on (a) and (b) for farm dwelling is extended by Land Use regulations to a permitted use in (c), (d) and (e) lands. Oceanside amendment of the CCRs even if relevant as an attempt to cure this defect does not alter this Court's conclusion, does not alter this Court's conclusion that the use of agricultural lots are not principally, principally agriculture. The amendment merely gives the lot owner the ability to engage in farming activity as directed to the homeowners association and that I was making reference to. Moreover, the agricultural activities a de minimis and do not change the purpose and character of the development which is, COUNCIL MEETING • - 47 - • July 28, 2010 which is again going back to... look at resident..,. luxury residential living... let's go back to agriculture, agriculture. What's happening? The agriculture disappears and we have this luxury residential living within a setting of a golf course, a club house, a private lodge and other amenities... unrelated to agriculture activities. So this is how they were trying to get around the law. Any dwelling on land classified agriculture must be a farm dwelling. Please remember this because I'm going to show you some pictures of farm dwellings here on Kauai and I want you to remember this agriculture land classified farm dwelling. As defined by HRS Chapter 205-4.5 (a) and (4), the Hokulia residences are not, are not... farm dwellings. They will not be located on or used in connection with a farm, nor provide income to its occupants as they must be by 205; rather they are luxury residence built around and to be used in connection with recreational activity centered around a golf course, members lodge, and beach club and spa. Oceanside omission or de minimis reference to an agricultural use of the land in its promotion material and its emphasis instead is to exemplary lifestyle surrounded by a golf course, club house, dining facilities, members lodge, beach club and private luxury home sites selling for one (1) to three million dollars ($3,000,000.00) each collectively indicate a planned and continued urban use of land. I want you to take reference to planned and continued urban use of land... the Judge has made reference here to circumventing the process. Circumventing the process meant that there is a process, if you want to do luxury type, you take the Ag land and you go through the process and have it urbanized, now it becomes an urban area, now you do your luxury homes, that's the process. Don't circumvent the process, you want to do other activities besides Ag, change the process. The process is there for you to move into that area and change it to urban, that's the process. Pursuant to HRS 205-4.5, here's what the Judge is saying, Oceanside must seek a boundary amendment from agriculture to urban from the LUC for the houses to be built. Simple... you want to do the TVR,s, as an example, those big houses where you want to rent out, change the zoning. The process is there but don't go and do your TVR, on the Ag land, that is not to be used for anything other than Ag purposes. So the Judge is saying this is the process, and when you read the Judge's opinion you're going to find that in a number of places where he feels that the applicant was really trying to circumvent the process by not going through there. Now I will tell you that the Judge admonished even the County of Hawaii, not only the County... the County Council, the County Planning Commission for what they allowed to happen. Let me read you this... the County must take affirmative prevention action to prevent agricultural land and cannot rely on after the fact measures when a large area of Ag land is involved. And here's the Attorney General's opinion... without affirmative action prior to subdivision approval, the county's enforcement ability will be impractical when the county must prosecute seven hundred and thirty (730) separate owners after the subdivision approval. He wasn't happy at what the county was doing over there. Any doubt as to whether a proposed subdivision will result in a significant change of land use should be resolved in favor of this approval. I'm going to read that again. Any doubt... Any doubt as to whether a proposed subdivision will result in a significant, significant change of land use... vacation rentals, significant change from agriculture, agriculture, agriculture of course... should be resolved in favor of this approval. I want to now show you what is on our island today. What is on the North Shore today. This is on Ag land. (go back, back again) this is one (1) portion, it's called Hale `Ae Kai and this is one (1) portion of the building, that is the structure there. Look at that. What is this? What is this? Is this a hotel? Ag use, Ag, Ag, Ag use... is this Ag use? This is almost crazy. Now let me read some of the things that is there. The house is comprised of four (4) Balinese inspired pavilions. The central pavilion is accessed across a three thousand five hundred square foot koi COUNCIL MEETING ~ - 48 - ~ July 28, 2010 pond and features gourmet kitchen, dining area, living room, office and guest bedroom with a king size bed and bathroom with shower. Each room in the central pavilion has ocean view lanais with spectacular views of the ocean and the Kilauea Lighthouse. On the ground floor of the central pavilion the house features a media room with dropdown projector and screen, full bathroom with shower, and state of the art exercise room complete with cyber eagle equipment. Mr. Furfaro: Excuse me, Mr. Chair... Chair Asing: Ping pong... Mr. Furfaro: We need some silence in the audience for those of us on this side is having difficulty in hearing (inaudible). Chair Asing: Thank you Vice Chair, I appreciate that. The media room has a queen size sofa bed for a possible maximum occupancy of ten (10). The master pavilion which is encompasses over one thousand one hundred square feet, excluding the three lanais... includes a bedroom area with a king size bed, a wet bar, subzero refrigerator freezer, drawers and a hot water tab for tea, as well as stunning ocean Kilauea Lighthouse views and garden koi pond lanai and I won't read the rest. And I won't read this too because it's talking about what is there and there is also a swimming pool, one thousand six hundred square foot swimming pool and a Jacuzzi, price... six thousand three hundred dollars per night. Again use agriculture, agriculture, agriculture... Ag land... what are we doing? What in the world are we doing? This is that unit and this is just three (3) areas, this is what it looks like on the interior okay. This is one (1) more, another one (1)... look at that. Ag use, Ag land, Ag use... look at that. It's two (2) story... now I show you this because that building is located here on that particular lot, there are other buildings also and I wanted to show you this because here I am not going to make reference to this building here. There is another one here but on this lot there's three (3) large units like that and I will just be talking about this one (1) here. Now this is the lot that I'm going to be talking about and it happens to be on a ridge and this is the trail getting down the ocean area here and these are some of the features here, the suites here, living room you know, just everything here and I won't go through all of this... and that's the... this has two (2) floors, both the first and second floor with all of these amenities on (go to the next slide) now these are just some of the amenities that are present in that unit. This is another one (1) and again this is what we look like, this unit in here (you want to go to the next one) and here it is, you know another big unit. It's just incredible on what is out there on our Ag lands, on the North Shore area. Now let me show you this, look at this here... price... six thousand three hundred to nine thousand five hundred per night, per night. This is not me, I didn't put this here, I am reading from the information that is provided on the website. And let me just read it here... enjoy simple elegance with profound views. Let me give you the prices here... seven thousand five hundred nightly rate for six (6) night or less and for six (6) nights it's forty-five thousand. For six (6) nights here because it is the holiday rate. If you do holiday then its fifty-seven thousand six hundred dollars for six (6) nights. Now I must tell you that when I looked at this, I said something's wrong. Something is wrong, this is not right because it is too high. So what I ended up doing is going back again and that's what I found again, there the price I looked at and there you go the sixty-three hundred and the ninety-five hundred per night for holidays. So I questioned one of the slides but in trying to verify it, I went back and looked and found this and so I'm sure that's the correct price, okay? These are the amenities in that particular unit. This happens to be one more area here and we can go to the next slide. And these are just the amenities that are there. This is one more of the unit here. I won't go COUNCIL MEETING • - 49 - • July 28, 2010 through these amenities here but this is what it looks like as far as the units are concerned. So again I just have to emphasize Ag activity, Ag use, Ag use, Ag use, Ag designated land, Ag designated land... what are we using it for? Let me just finish up by saying this, this is one (1), this is one (1) more... and this is one (1) more... combined, look at what we have here. Here's what I want to do, as Judge Ibarra noted in the Hokulia decision, any analysis as to whether the use of agricultural land complies, complies with Chapter 205 must include cost of operations. These photos that I showed you and that resources being used for agricultural operations if any pale in comparison to the resources being used for resort operation. Entirely wrong, entirely in contrary, contrary to 205. It cannot be compatible, it cannot be accessory. It is not an accessory. Accessory again, accessory Ag, accessory Ag... it's got to have some tie and there is no tie and that is what the Judge is saying. These photos show that the resources being used for agricultural operations if any pale in comparison to the resources being used for resort operations. If we allow vacation rentals to become the dominant use in the Ag district, we are not doing our duty to protect agricultural land, this would be an absurd result of Chapter 205. For these reasons I cannot vote for this bill, I hope that what I had presented will give other Councilmembers food for thought and that they reconsider their position and vote `against the bill, thank you. Mr. Furfaro: Can I have your attention in the audience please? Mr. Chair, I just want to thank you for the presentation, I mean the other portion of that as you shown us exactly the reason why we need to regulate and I want to make reference to the fact that I was on the General Plan when this was brought to our attention and I was a member of the Ad hoc Committee that Councilwoman Yukimura worked on and in all of those particular parts the message was we need to regulate what's happening here and the fact of the matter is unfortunately it has taken us eight (8) years to go through this process and it is so stated in the General Plan. I would also like to make some notes about our rules. We are in session as a group and our rules indicate and I shared this with the Chair before that when the Chairman of the presiding officer turns over the meeting so that he can make a presentation and so forth, the meeting needs to stay with the Vice Chair until the item is disposed of. Chair Asing: That is not my opinion. Mr. Furfaro: I understand. May I have the County Attorney up please? If you want to find yourself understanding the rules, I would share with you that I've made this expression many times prior to this, our rules say that when we have a passing of the Chairmanship duties, until the item is disposed the item stays with the Vice Chair, that is our rules. And we have attempted to change the rules in the past but unfortunately we have not had any collaboration to do so. So before we go forward, I would like to get a clarification from the County Attorney as this item has been turned over to the Vice Chair and it is my understanding until the item is disposed, this meeting has been turned over to me. There being no objections, the rules were suspended. Mr. Castillo: ~ Councilmember Furfaro, Vice Chair... on this matter regarding what you're talking about... that is true. When the... in this instance when the Council, when the Council Chair relinquishes the gavel to you, as he is... he was the presiding officer and you became the presiding officer and Robert's Rules of Order states that the Chair should not return to it until the pending main question has been disposed o£ Now the reason for this, this is founded in impartiality. In this case where the Chair has made a presentation and COUNCIL MEETING • - 50 - • July 28, 2010 distinctly showed his partiality in terms of where he's going to vote on the measure, in this instant he has shown himself to be a partisan and the act of him returning or the act-. of the gavel being returned to him may destroy the members confidence in the impartiality of his approach to the task at hand and so in essence what I'm saying is, yes you are correct you have the gavel, you will have the gavel until the vote on this matter have been concluded. Mr. Furfaro: May I ask do I have the prerogative then to put the return of the gavel in the Chair's hands by a vote of the members? Do I have that... Mr. Castillo: You have... you may have the prerogative but again the question here is one of impartiality because of the fact that the Chair has shown his vote, there comes a question of whether or not the Chair can preside over this body with impartiality. So I don't know if I answered your question. Mr. Furfaro: Well I am going to put it to a vote, my point is that we understand the rules, so I'd like to make a motion to propose that Mr. Asing return as Chairman for the remainder of this item. I would like to make that motion, do I have a seconded for discussion? The meeting was called back to order, and proceeded as follows: Mr. Furfaro moved to return the chairmanship to Mr. Asing, seconded by Mr. Kawakami. Mr. Furfaro: There is discussion on the floor. Mr. Kawakami. Mr. Kawakami: I think that if the Chair cannot fulfill his duties as Chair without being impartial while we're in deliberation, anyone of us can call a point of order... Mr. Furfaro: That is correct. it. Mr. Kawakami: And get back in line, so I don't see a big deal about Mr. Furfaro: Okay, any further discussion? Mr. Bynum. Mr. Bynum: I just you know I guess my reading of Robert's Rules that recommends that change but I don't have any problem with the Chair continuing with being the Chair in the meeting. Mr. Furfaro: I appreciate it that and my only point here is I want to make sure people understand that we are a body governed by rules. Mr. Kaneshiro did you have anything? Mr. Kaneshiro: No I don't have any comments. Mr. Furfaro: Okay. Mr. Kaneshiro: To that and I would respect your vote and support it. Mr. Furfaro: Thank you very much. Councilmember Kawahara. COUNCIL MEETING • - 51 - • July 28, 2010 Ms. Kawahara: I definitely find this extremely interesting. I've seen the Chair take over... made presentations many of times with partiality and I did not realize that that was the Robert's Rules of Order that required if the Chair showed partiality that it might prove a problem to the deciding factor. I would like to say for the record and I looked this up really quick when this came up... the Chairman sometimes calls a member to the chair and takes part in the debate, this should rarely be done and nothing can justify it in a case where much feeling is shown and there is a liability to difficulty in preserving order. If the Chairman has even appearance of being impartial he loses much of his ability to control those who are on the opposite side of the question and basically there's nothing to justify some unfortunate habits. So being a freshman member and seeing that this has been the practice, I just find it very interesting that we haven't been doing it quite yet. past... Mr. Furfaro: I can assure you that I've raised the question in the Ms. Kawahara: Yes. Mr. Furfaro: And did not necessarily have the support to raise that question but I would like to turn the gavel back to Mr. Asing and I have made that motion, I had a seconded by Mr. Kawakami. I just wanted to make a point on our rules. Is there any further discussion? On that note, Chair Asing before we turn the meeting back over to you, may I ask that we can at least have the County Attorney for a couple of questions on 205? Chair Asing: Sure. Mr. Furfaro: Okay it has been motioned by myself and seconded by Mr. Kawakami. All those in favor please signify by saying "aye". Mr. Bynum, Mr. Chang, Mr. Kaneshiro, Mr. Kawakami: Aye. .Mr. Furfaro: Ms. Kawahara Any oppose? No. The motion to return chairmanship duties to Mr. Asing was then put, and carried by a vote of 6:1 (Ms. Kawahara voting no). Mr. Furfaro: Hearing none, Mr. Asing you have the floor back. Chair Asing: Thank you. I want thank you Councilmember Furfaro for your turning over the Chair to me. I can assure you that I have never been impartial to anyone in Chairing... everyone has had the same opportunity in any discussion that I've Chaired, so I wanted to let you know that and I want to thank you for letting... Mr. Furfaro: That is one of the reasons I had no problem returning the Chairmanship to you but I did want to point out what is referenced in our rules. Chair Asing: Thank you. With that... the rules are suspended. Mr. Furfaro: Thank you very much. There being no objections, the rules were suspended. COUNCIL MEETING ~ - 52 - • July 28, 2010 Mr. Castillo: Excuse me Chair Asing, I know you wanted... there was a request for the County Attorney up here... I have read all of the case law that you cited and more, and every that... however, the technicians are, the deputies that are highly involved in this are Ian Jung and Michael Dahilig, so I ask that they be present here to answer your questions. Mr. Furfaro: Thank you. Chair Asing: Thank you. Mr. Furfaro: Gentlemen. Chair Asing: With that... Mr. Furfaro: I do want to say that I think in addition showing some of the practices that have happened on issuing permits and so forth, I think the Chair made an excellent case on why we're at where we're at today and that is we need to regulate this process and I can share with you in the General Plan of which I was present there was an effort to stop the proliferation and for me that's what I believe this bill is all about to finally draw the line in the sand, going forward. Now many things were referenced in the case on the Big Island as well as 205-5 and so forth but the one I'm most concerned with is 205-6 and I would like you to expand on that for me if you could please. Mr. Jung: As the deputy Attorney General's opinion did mention that they are permissible uses under 205-2 and 205-4.5 and the Chair did identify that of those uses if they're not permissible, they're prohibited right? But the Attorney General opinion also mentions that there are other uses that are allowed through the special permit process. And the special permit process has been in play within this county for a number of years and the special permit process has actually been used by the LUC with regard to the Kahili Adventist School to allow for transient vacation rentals up on that particular property. So the LUC has made its original ruling back in the 60s and in the 70s regarding that particular special permit, yes. But the special permit is a unique permit because it's under 205 but... 205-6 and you look at the unusual and reasonable use of a particular applicant. Now in this particular case someone would be coming in for a transient vacation operation, so the... what the bill the way Couricilmember Kaneshiro left it was in addition to the special permit process, you also have to entail that the particular dwelling is not just a dwelling is a farm dwelling. So it still has to promote the effectiveness of Chapter 205 so they still have to show that there is a farming operation. Mr. Furfaro: So showing that it is a farm dwelling which is the verbiage in this bill clarify things when each of these applicants who were active March 7, 2008, they can show that relationship in front of the Planning Commission? Mr. Jung: That's correct and the Planning Commission would then take it on a case by case basis to analyze certain criteria that's laid out in 205... in Chapter 13 of our Planning Commission rules if the property is less than fifteen (15) acres but if the property is over fifteen (15) acres then it would be both get an approval... it would require an approval of the Planning Commission and then get kicked up to the LUC for final disposition. So the property is over fifteen (15) acres then it would require two (2) approvals and then the LUC would also make a determination and could also impose additional conditions to what has been listed in this particular bill. COUNCIL MEETING ~ - 53 - • July 28, 2010 Mr. Furfaro: And again agricultural lands under fifteen (15) acres do come under the jurisdiction of the Planning Commission and this Council? Mr. Jung: That's correct... of the Planning Commission. Mr. Furfaro: Planning Commission... that's correct? Mr. Jung: Yes. Mr. Furfaro: Okay. Thank you gentlemen. Chair Asing: Let me, let me ask this question... yes they come under the Planning Commission but the rules still apply, State rules? Mr. Jung: That's correct Chair... the LUC rules... Chair Asing: Okay well I just wanted to make that point. The point that I'm simply making is yes it is under the county but the rules governing that land is still the same. Mr. Jung: That's correct. Chair Asing: The rules remain the same. Mr. Jung: And the Planning Commission... Chair Asing: The body administrating the rules is different... Mr. Jung: And the Planning Commission... Chair Asing: But the rules are... Mr. Jung: Has adopted the special permit rules that are instituted within the LUC rules. Chair Asing: Okay thank you. I appreciate that. Mr. Furfaro: So could I just have him repeat that again? Chair Asing: Sure. Mr. Furfaro: The Planning Commission has adopted those rules that parallel the State? Mr. Jung: Yes and they are five (5) criteria within 205-6 process. Mr. Furfaro: Okay. Mr. Jung: And our rules mirror the LUC rules under Chapter 13 in our particular rules of Planning Commission. Mr. Furfaro: Thank you. Back to you Mr. Chair. Chair Asing: Go ahead Councilmember Kawakami. COUNCIL MEETING ~ - 54 - ~ July 28, 2010 Mr. Kawakami: Thank you Mr. Chair and since we're referencing 205-6 in regards to the special permit, I agree it clearly states that somebody can apply for a special permit so prior to... what is the date March 7, 2008 anybody could have applied for a special permit, so in your guys records how many people actually applied for a special permit? Mr. Jung: I believe and you know that would probably be a better question for the Planning Department staff but I think there was one (1) or two (2) with regard to Bed and Breakfast. Mr. Kawakami: Okay. Mr. Jung: Or what we now refer to as a home stay. there? Mr. Kawakami: That's all I have. Chair Asing: Can I follow up on that? Mr. Kawakami: Yes. You the Chair. I wish I was sometimes... Chair Asing: Well are you trying to imply that the process was Mr. Kawakami: Are you asking me if I'm trying to imply that the process was there? Chair Asing: Yeah because... Mr. Kawakami: Well. Chair Asing: Because the opportunity to apply was there but they did not apply. The opportunity was there. Mr. Kawakami: Yeah. Chair Asing: So we cannot say that they didn't have an opportunity because the opportunity was there and that's what I'm trying to clarify because I'm hearing that we want to give an opportunity, we want to give an opportunity... you had an opportunity, you did not use it. Now you want to say but I didn't have an opportunity so I need an opportunity, that's what I'm trying to say. The opportunity was there and that's where I'm coming from. Thank you. Mr. Furfaro: Is there anyone... do you have a question? The Chair can recognize you. Chair Asing: Yes go ahead... anyone have questions for the County Attorney? Go ahead Councilmember Bynum. Mr. Bynum: Thank you gentlemen, I'm going to try to refrain from having a dialog and just ask questions... in the Chair's presentation he quoted as we seen quoted here several times from the AGs opinion, language that seem pretty unambiguous. I can find no justification how counties could under section 205 (inaudible) all these numbers correct? Mr. Jung: Well I think the AG's opinion references is 205-4.5 as well as what the county could look at as accessory use under 205 (b). COUNCIL MEETING ~ - 55 - ~ July 28, 2010 Mr. Bynum: Right so basically says you really can't justify this as an accessory use? That's what the AG's opinion says? Mr. Jung: I think that was the intent. Mr. Bynum: But this bill is not contemplating an application as an accessory use, is that correct? Mr. Jung: That's correct. Mr. Bynum: So it's not under that section where there was clear language, it's under section 205-6 right? Because the bill says in Kaneshiro's amendment says in addition to special permit standard set forth in HRS section 205-6... I just wanted to be clear that this bill would allow people to make that argument under 205-6, not under 205-5. Mr. Jung: That's correct, which would require a full public hearing before the Planning Commission. Mr. Bynum: Right. Does this bill as written legalize TVR,s on Ag land? Mr. Jung: It does not legalize TVR on Ag land because the intent of the bill is to allow them to come in to apply for the special permit. Mr. Bynum: The Chair quoted extensively from the Ibarra... the Judge Ibarra's decision in the Hokulia case which was primarily about Ag subdivisions, correct? Mr. Jung: Yep. Mr. Bynum: I've read that opinion, I'm a fan of that opinion but that opinion is not precedent setting in the State of Hawaii, is it? Mr. Jung: That's correct. It's not within the (inaudible) decisive system which we establish our precedent to, for us as attorneys to rely on when we submit documentations to the Court. Mr. Bynum: Do you recall offhand what year that decision was? Mr. Jung: I think it was in the... Mr. Bynum: That's okay if you don't, I don't recall offhand, but you know why we came familiar with... I mean a lot of people thought that if that... that that would be appealed to the Supreme Court and then we might have court decisions that gave us some guidance but that never occurred? Mr. Jung: That never occurred and it would have been instructed probably in this matter. Mr. Bynum: Again that was primary about agricultural subdivisions? Mr. Jung: As a master planned community. COUNCIL MEETING ~ - 56 - ~ July 28, 2010 Mr. Bynum: So okay I'll... when you mentioned earlier something that I haven't heard before that the LUC allowed a special permit for Kahili Adventist for transient accommodations in the past? Mr. Jung: That's correct. They do have... I forget the exact number of the particular units up there but I think it's between fourteen (14) and eighteen (18) that the LUC did approve back in the 60s. Mr. Bynum: And ah... I don't want to ask a question that's out of bounds but are you aware that Maui County is currently allowing special use permits for overnight accommodations on Ag land? Mr. Jung: They do. Mr. Bynum: Okay. So they must not feel like it's blanket illegal? Mr. Jung: They recognize the special permit process and implemented that particular process but that difference I think that Maui has with regard with transient vacation rentals is they have implemented an ordinance back in the 80s to regulate transient vacation rentals. Mr. Bynum: Right and we did one in 2008, right? Mr. Jung: That's correct. Mr. Bynum: Okay. And the County has the authority to say... to regulate and say no new vacation rentals outside the VDA? Mr. Jung: Mr. Bynum: Mr. Jung: Mr. Bynum: Mr. Jung: Mr. Bynum: Chair Asing: Councilmember Kawahara. Ms. Kawahara Chair Asing: You do have that authority. And we've done that? That's correct. And nothing in this bill changes that? No. Okay thank you. Councilmember Kawakami Thank you... just for clarification... Go ahead. and then Ms. Kawahara: Thanks. As the Supreme Court... is the Supreme Court the highest law of the land, the Hawaii Supreme Court the highest law of the land in the State of Hawaii? Mr. Jung: In the State of Hawaii it is. Ms. Kawahara: Oh okay, so it's not the Attorney General... the State Attorney General? COUNCIL MEETING • - 57 - • July 28, 2010 Mr. Jung: It is... it is not. Ms. Kawahara: Thank you. Chair Asing: Okay. Councilmember Kawakami. Mr. Kawakami: Thank you Mr. Chair. This is going to sound like a silly question but is the word lawful the same as legal? Mr. Dahilig: The word... Mr. Kawakami: Lawful the same as legal? Mr. Dahilig: Is this thing on? Mr. Bynum: Yes. Mr. Dahilig: Is the word lawful the same as legal um... I would use the word lawful in more of a context of whether you're trying to determine if that particular action.:. Mr. Kawakami: Okay because... Mr. Dahilig: Is it lawful, and if you're looking at it from a... I understand that it may be interchangeably used but that... in my own opinion there is some distinction in terms of how you would use it but generally it would mean the same thing. Mr. Kawakami: Okay and I find it, I find that good because the question that was previously posted is does this, does this amendment legalize vacation rentals and the answer was... it doesn't. But what this does is claim that it was legal all along because just in the language of the bill it says the purpose of this section is to provide a process to identify and register. those single family transient vacation rentals as nonconforming uses which has been in lawful use prior to the effective date of this ordinance, so of course this bill doesn't legalize it because the claim is that it was always legal. Now how is it legal without a special use permit, according to 205-6? Mr. Dahilig: I think you pose a very good question and it may actually be... I may want to point to what the Chair did in his presentation with respect to the Attorney General's opinion as to evidence that shows whether a TVR or a Bed and Breakfast is a lawful use that comports with Chapter 205 Section 4.5. What you want to take a look at is they leave the question a little open ended and do not have the exact phrase in front of me but they particularly say that they cannot find any circumstance where a TVR or a Bed and Breakfast could be legal under Chapter 205. But it doesn't make a definitive disposition in terms of them saying it's absolutely not allowed. So what you're looking at is a circumstance where they are individuals that was caught up in the 864 and 876 process that were asserting that they were legal under Chapter 205. However given the way that the process was executed and actually run through, the evidence to determine whether or not a property was legal under Chapter 205 was not actually included in the dossier before the Planning Department and the Planning Commission so I do, I don't want to steer away from your initial question asking whether something was lawfully in use prior to March 7, 2008 but part of that determination is looking at the facts and obtaining more facts through the special permit process to determine whether or not a TVR or Bed and Breakfast was a legal use. COUNCIL MEETING ~ - 58 - ~ July 28, 2010 Mr. Kawakami: Okay and just a comment you know this whole, just a route that this thing is taking I mean... the lawmakers are the problem in this thing. It's not the guys that have build the American dream, I mean that's what it is... it's the American dream. I don't want to discourage that, I want every young fellow out there to see what's you know what you can accomplish when you put your mind to it I mean that is what the American dream is, it's not their fault that they're successful. It came with a lot of hard work but you know we're the problem, the lawmakers. Because we create laws like this where you ask a simple question and you get this answer where any layman wouldn't be able to interpret I mean and I'm just being honest. And I have my points on why I'm not going to support it but you look at this, what we're dealing with, the rule book... it ain't user friendly. It's not. It's not and it's your fault and it's not the attorney's fault but, but I'll take the blame you know... it's the lawmakers that come up with these laws, you know it's not clear. So thank you. Chair Asing: I was going to make a comment but I won't make that comment... ah maybe I should make the comment... you know it's many times the laws are not going to be as clear as black and white but as Judge Ibarra was trying to say, yeah... was the reasonableness and the absurdity of the law would not be the intended use, so you need to look at that and that is the reason I keep saying agriculture, agriculture, agriculture... think agriculture because agricultural designated land, so if you think that way, the way the law was intended to be administered then the reasoning you use you are more likely to understand what the law meant, it's intended use so that was what I was trying to do which is what Judge Ibarra is trying to do all along if you look and trace his comments, you will find that... you know intent, intent, intent... for, what for, Ag... Ag land, Ag purpose, Ag land, Ag purpose... and when you throw in accessory, accessory to what... Ag... accessory to Ag, not accessory to this big buildings. You know and that's the way you know I was taught to interpret rules. I've done basketball officiated for twenty-five (25) years, worked all the big games- in Honolulu, all the college games and we're taught that. It's called game law, intent, intent of law. What was the intent of this rule? Look behind it, understand it and use that as a guideline so those are just comments that I have. With that Councilmembers any questions for the County Attorney? Mr. Furfaro: I have one (1) more. Chair Asing: Go ahead. Mr. Furfaro: You know the... with the passing of this bill are we feeling that we can control the proliferation of future TVRs? Mr. Dahilig: The way that the bill is written Vice Chair, I would take a look again at ordinance 864 and the first control is already there and that. control is to not allow any transient vacation rentals outside... single family transient vacation rentals outside the VDA. Mr. Furfaro: New ones? Mr. Dahilig: Um... any new ones. This in essence is still tailing or dovetailing that process of registration and determination whether there was a legal use prior to March 7, 2008. So there would not be any new TVRs that will be created out of this that were not in existence prior to March 7, 2008, rather it is again the dovetailing of that particular process to help determine whether particular lawful uses were in fact lawful as represented by applicants or they were not lawful. COUNCIL MEETING • - 59 - • July 28, 2010 Mr. Furfaro: I just want to read you 4292 in the General Plan that talks about the Planning Department although this is now at the Council. The Planning Department shall consult with State offices of Planning to interpret existing State statutes with regard to permitting alternatives for visitor accommodations within the State agricultural district under a special use permit. If necessary the County Council shall propose the... proposed I'm sorry I don't have my glasses... alternative amendments. The implementation actions relating to alternative vacation rentals shall be a top priority, this is eight (8) years ago... and shall be initiated forth worth... forthwith by the Planning Department. I think this bill helps us accommodate what was stated in our need not to let TVR,s proliferate. I think that's what that message is from the thirty-six (36) citizens that sat on this board. But what I'm hearing from you, it gives us a stronger position to protect any future growth in these areas? Mr. Dahilig: That's correct. Mr. Furfaro: Thank you Mr. Chair. Chair Asing: Thank you. Any other questions for the County Attorney's Office? If not, I have one (1) question and I think it's going to be a difficult question for you to answer but I think I should ask it... is it possible... I'm going to ask you again... is it possible and I'm going to repeat it again, is it possible for one of these units that I showed there to appear before the Commission under this ordinance and get a permit to operate? Is it possible? Mr. Dahilig: So Mr. Chair you're asking... Chair Asing: Could that happen? Mr. Dahilig: You're asking whether it's possible... Chair Asing: Yes. Mr. Dahilig: Whether the units that you showed in your particular... Chair Asing: Yeah. Mr. Dahilig: PowerPoint could apply through this process? Chair Asing: Not apply. I'm saying is it possible for that, one of those buildings to get a permit so that they can in fact be legal? Is it possible? Mr. Dahilig: Again not knowing the particular facts of what... Chair Asing: Don't... wait a minute now, it's simple. It's a simple question... Mr. Dahilig: I thought it was a difficult question there... Chair Asing: Is it possible? Mr. Dahilig: Again... Chair Asing: Pretty simple question... Mr. Dahilig: Without the... COUNCIL MEETING ~ - 60 - ~ July 28, 2010 Chair Asing: Is it possible? Mr. Dahilig: Without the facts that are on these particular units that are there, I cannot render any type of answer... Chair Asing: And... Mr. Dahilig: To your question... I understand... Chair Asing: Okay thank you Mike. Mr. Dahilig: You would like a yes or no question... Chair Asing: And I understand Mike... thank you very much and that's the reason why I'm against this bill. That's the reason I'm against this bill because it could be possible. Mr. Castillo: Council Chair. Excuse me, County Attorney... and this is why I basically said that you know in arguing with our... your own County Attorney.. . Chair Asing: Okay. Mr. Castillo: I mean it's beyond what the Council Chair should be doing so and... Chair Asing: Thank you. Mr. Castillo: And if you have your opinions then please go back into session and if you have a question for the attorneys please ask the question, have the answer and then we can sit down. I would appreciate that. Thank you. Chair Asing: Thank you. Thank you, no further questions. Mr. Dahilig: Thank you Chair. The meeting was called back to order, and proceeded as follows: Chair Asing: With that any further discussion? We're on the bill now, we have a motion to approve the bill as amended, we are in discussion now so with that Councilmember Bynum. Mr. Bynum: Yeah... I knew today was going to be an interesting day, I didn't know exactly how it would be but and it certainly is. I know that I've been involved in this debate and this discussion for six (6) years or more. This is the umpteenth Council meeting where we've gone back and forth about this and I've come to my own conclusions to the best of my human ability so I want to say a few things and you know I probably could go on for as long as the Chair did and someday I will about other issues and I know later I'll wish I would have said something I didn't say but I want to start with... I really appreciate the County Attorney coming up and answering some legal questions, the sky did not fall, it was healthy and I trust them to know their appropriate boundaries and so I hope we can do that in future meetings and not be so constrained about having a legal discourse that includes our confident attorneys. The other thing is... so then I'll just go to the general things... we've talked about the General Plan today, the General Plan inspired me to run for elected office because it's an inspired document and I am COUNCIL MEETING • - 61 - • July 28, 2010 going to do a lengthy presentation on a future bill that goes into .that history because I'm kind of a history buff too, and I have been since I've been a Councilmember. The ability to look at the transcripts of Council meetings back ten (10) years or twelve (12) years, the public can do that for the last couple years but you can't go back to 2000 and see what Councilmembers said about these issues. You know it's not easy to access that, you know, but you know this issue about agricultural land and today TVR,s and subdivisions got mixed up and you know the Judge Ibarra's decision which I've read a number of times is really about agricultural subdivisions which continue unabated on this island till this day, okay. And... but when it comes to TVR,s we all know what reality is that what you can and can't do on agricultural land and the way the laws are interpreted and used and whether it's a farm dwelling agreement, it's ridiculous... it's a joke and we all know it. I'm looking at Mr. Oyama because I've read his testimony before this Council for more than twelve (12) or fourteen (14) years and he... in his exasperation about not having just plain simple logic prevail and I think that's what the Chair position was and I really like what Councilmember Kawakami said... the lawmakers are the problem. I think if there's someone to blame for this, it really comes down to the political people... the Planning people have tried to give us guidance, the community has tried to give us guidance, they gave us our marching orders in that 2000 document and it took us eight (8) years to regulate TVR,s. So I want to tell you and we still haven't dealt with this gentlemen estates and agricultural subdivisions and so I want to tell you that it's not for the lack of trying. In 2000 then Councilmember Bryan Baptiste brought forward moratorium on Ag subdivisions and said we have to address these issues that are happening in the General Plan and the Council at the time said oh good idea because we don't need a moratorium because we're going to redo the CZO within six (6) months... the CZO didn't get renewed in six (6) months, it hasn't been renewed since the 70s, we're still waiting for it, okay? But it's like ho it's going to happen in six (6) months, good idea Bryan but no we don't have to stop the bleeding now because we're going to fix it soon. Couple years later the Planning Department brought a bill here that would have reduced density, controlled these things, put in class 4 zoning and dealt with gentlemen estates right and the Council hemmed and (inaudible) and deferred it for eight (8) years, these are facts. They are in the General Plan. In 2008 then Mayor Bryan Baptiste brought the same provision that he had done in 2000, in the year 2000 before this Council and the Council rejected it. Two (2) months ago I tried to put a class 4 zoning bill to address Ag subdivisions on the Council agenda and it's not there yet and I'm still working on it and so when that bill comes that addresses what I think is the four hundred (400) pound gorilla in and what Mr. Long I think addressed here today and what Mr. Rego addressed here today and very powerful and appropriate testimony, you know we got to deal with that four hundred (400) pound gorilla. I know that this is the top priority for me on the Council. But bringing this back to TVR,s, I also know that a lot of good people didn't go out and do evil things and violate the law, we did... even a lot of them testified here today, they did what they thought was right, they hired attorneys who said you're good. They talked to professionals who said everything's fine, they didn't apply for a special use permit because there was no norm in our community that that was an expectation, nobody from the County or State ever said that you got to do this, right? In fact we went deep into this debate about vacation rentals talking about well we're going to grandfather you if you're legal and the whole discussion for months and this is in the public record please do the. research. The whole discussion for months was did you pay your TAT, you know... and that was a big discussion about zoning violations and building codes and tons of Executive Sessions which I moved to make public here but I couldn't get the votes... you know this is all public record. But there was... and all of a sudden it was like oh but if you're on Ag, you're illegal and the debate got polarized again and we passed a bill that had "gotcha" provisions that I believe from the best of my heart and mind from talking to not only our attorneys but other peoples attorneys and other island attorneys because I do work COUNCIL MEETING • - 62 - • July 28, 2010 hard at this job, I'm trying to do my due diligence to make the best decision I can but we, you know, we... government can say from this point forward new rules okay but when government says and we're going to try to go backwards and change things we've already done being status quo it's just not fair. And as it turns out it's not legal in most instances and we can debate until the cows come home about what you can and cannot do on Ag land but if we were in Maui they're doing these permits right now. We've already said no new ones but for those of you that ordered your economic life and your wellbeing and your life whether you're rich or poor, around what was the status quo, it's not fair for us to change that this bill is an attempt to see the law correctly applied to give people the opportunity to do the most democratic of things-have their day in court, in this instance it happens to be at the Planning Commission. This bill does not legalize TVRs on Ag, in fact it doesn't change the bill that said you can't build any new ones. We finally did it after eight (8) years. This bill is about fairness, it's not over because people will decide if they'll apply and the same characters will come down to the Planning Commission and make the same overheated rhetoric and you know unfortunately that body will have to decide and this body hasn't given them clear guidance. But they're not going to be getting permits for people that try to start a TVR, yesterday or in 2009, right? Because we finally gave guidance on that but on these other big issues that are protecting Ag land, Ag subdivisions in particular, the CPR law that is so complex and convoluted, we still have a lot of work to do so needless to say I'm going to vote for this bill today, I hope that we prevail, I know it's not the end of it but I do that with a clear conscience and with fulfilling my ethics and my sense that my responsibility is to do the best that I can with a heart and mind that God gave me to make the best decisions for all the citizens of Kauai and thank you for letting me make a speech. Chair Asing: Thank you. Councilmember Chang. Mr. Chang: Thank you very much Council Chair. First of all I want to thank Council Chair Asing for the presentation and I also want to thank him for the shots of the homes and of the large what many people refer to as hotels. I was going to give a presentation but I'm not. The presentation as many of you folks remember I talked about the fact that years ago I had a very enlightening experience as I flew over agriculture lands and to just reminisce and my memories about a month ago I went back up and I got an aerial view with a videographer and if you can understand videographer, a videographer is looking like this and only looking like this, whereas we are looking like this... and if any of you folks saw what I saw that was up there, I'm not doing the presentation because some may be legal, some may be illegal but I went up with the videographer obviously a pilot and I brought up a local boy just to show him for the first time ever, Kauai boy, to see what it looks like aerial-wise. I saw still photos of homes and we looked at different places from the air. Well this guy happens to be in the contracting business, he happens to be a painter. I painted that house, I painted that house, wow look at the extension on that house... wow that house never used to have a pool, wow look at that adjacent property next to there. There were round houses that got rounder, like another layer around the houses... so I think the Council Chair asked an excellent question... do these homes have a chance of being permitted and lawful or legal? And these are mega homes but they are still homes that may not be ten (10) bedrooms or six (6) bedrooms but there are those that are four (4) bedrooms, three (3) bedrooms, two (2) bedrooms but believe me, when you fly over places with tennis courts, big huge swimming pools I mean kidded that the most beautiful unseen par three (3) on the island of Kauai believe me there's one right on the ocean, into the wind, so that's a beautiful hole that nobody gets to see that hole but you know this discussion has gone on a long time. People say you know perhaps it could have been rectified years ago, maybe I remember we had a conversation on the floor a few weeks ago when we had a chance to talk with Barbara Robeson and COUNCIL MEETING • - 63 - • July 28, 2010 she actually estimated if I'm correct that had this been rectified years ago; maybe eighty percent (80%) of the inventory would not be here. Now we've talked to a lot of people here, one (1) of our speaker talked about I don't sense the aloha spirit, I don't feel the aloha spirit... but I think there's very good reason why in many cases we don't feel the aloha. I'll give you a couple of examples. I got one of our testifiers over here that's been a resident for over thirty (30) years, she had great, great friends on this island of 'Kaua`i. They were friends and nowadays, they don't talk story. And then this speaker because she takes the stands gets pounded verbally in the paper, on blogs, you know we get other people that you know like you want to live the dream, you want to come here, you want to build a home, I need the TVR, to support the home and on the same token too, the local people are going wait a minute we just want to be able to afford our rent. We just want to make it every day and they're not relying on any other income and you know people are going to say, you know if you can't afford the TVR, don't buy the TVR, or if you can't afford the house, don't buy the house to use the rent to pay for your mortgage when you're not living here fulltime. So when you talk a little bit about the aloha, I mean I gave an example today that personally hurt me that you know a friend of mine would come to my house and talk story and I don't even know when you leave at the middle of the night, take care drive carefully, see you later and end the conversation and then I become somewhat a subject to recuse myself or try to defer you know, that is where there's a lot of confusion. Randy Ramos over here you know he gave a compelling testimony because that was twenty (20) years of having his lo`i, having his land, having his water, I mean so you got to realize that this affects a lot of people. And many of you know that the local people come up to us... I work three (3) jobs, I work four (4) jobs, I cannot talk in front of the people, I don't know how to write, I'm afraid you know. We have to act as their attorneys and if we're acting as their attorneys. We have to assess everything, make a determination and we all solemnly swear to support and defend the Constitution of the United States, State of Hawaii, Charter of the County of Kauai, and faithfully discharge our duties of being members of the Kauai County Council to the best of our abilities. So today that maybe a vote that's going to happen and some of your are going to get pleased, others will not get pleased but I'm glad we're here to make a decision because I guess I may as well say being a subject of a blog for two (2) days in a row... as I was huffing and puffing, I kind of compared that to BP, you know there's all this stuff that's happening, you've got all these masterminds trying to put a seal on this and nobody can figure how to do it. Then all of a sudden on March 7, 2008 we finally put the cap on and now we got to get there and we got to fix the problems that are out there from the shorelines to the mountains, from mauka to makai now we got to get there and we do need to have the people justifiably be able to apply. I believe that's the right thing to do and I am not going to say I'm going to reluctantly support it but I am going to support this bill, to move further and get this county going on the right foot because I believe that we're doing the right thing to move forward and ho`oponopono for the benefit of all the residents of the island of Kauai. Whether it's right or wrong, we need to go forward and we need to do this together. Thank you. Chair Asing: Thank you. Councilmember Kawakami. Mr. Kawakami: Thank you Mr. Chair. And you know when I draw reference to say that the problem is with the politicians I mean it in saying candidly that I think often times we take the approach of trying to craft solutions without first identifying the problem and when you look at this issue in every which way that it's presented, we become distracted as to what the underlying problem really is and for me the underlying problem really is that Ag is struggling to survive. First and foremost we're not talking Ag of the 80s or the 70s or the 60s or the 50s or the 40s... we're talking about Ag in the era of globalization where we are now competing with third (3rd) world countries with no labor laws and how do you COUNCIL MEETING • - 64 - • July 28, 2010 successfully compete with that... just racked up against you from the very start. And so what this does and what I don't agree with, you know I agree with a lot of the points and I disagree with a lot of the points on both sides of the fence but what I disagree with is that for many farmers that are really farming, this closes the door on them and when we are deliberating farm worker housing and while I sit on KDBs food and Ag Committee we try to deliberate and find out ways that we can give farmers tools to succeed so that first and foremost we can preserve our rural character which is what the General Plan to me tries to accomplish, to preserve our rural character. So how do we give tools to our farmers? And also of farmers have agreed and said that you know, it would be a great tool to be able to subsidize my farming operation with a vacation rental... BC you got to go to the bathroom? BC: No I got to change the tape. Mr. Kawakami: You got about five (5) minutes? Chair Asing: The tape, the tape... he got to change the tape. Mr. Kawakami: You want to change the tape? BC: Yeah I have to. Mr. Kawakami: Okay change the tape then. Chair Asing: We'll take a short break the tape needs to be changed. There being no objections, the Council recessed at 5:16 p.m. The Council reconvened at 5:25 p.m., and proceeded as follows: Chair Asing: The meeting is now called back to order. With that Councilmembers, we have a motion on the floor to approve, is there any further discussion? Mr. Kawakami: Yes Mr. Chair, I was in the middle of... Chair Asing: Go ahead Councilmember Kawakami. Mr. Kawakami: Thank you Mr. Chair and my apologies we had to take a tape change break so... but what I was trying to get to, we try to figure out ways to give our farmers tools that they need in order to survive against all odds because Hawaii as any businessman knows is one of the most unfriendly States in the Nation to conduct business. As a manufacturing State we're one of the poorest, we're importing more than we're exporting. And so we try to give these farmers the tools and that is the underlying problem is that Ag is surviving in my opinion by a thread at this point. We try to contemplate how do we attract the next generation of farmers when they can barely make a living. And so how does these farmers survive and we try to find ways to help subsidize what their operation is. And I've always felt that for a farmer this would be a tool and for many farmers agree with me, there are many farmers that agree that this would be a great tool to help subsidize their operation and I've always felt that the appropriate way to do it is to bring a proposal to our State Board which is HSAC and have them adopt it as one of their pieces in the Legislative Package and allow us to lobby for it and it's a simple thing we'd be asking for. We'd be just asking for them to be very crystal clear by adding the language to 205 that would create this as a permissible use. And from that they could give us the homerule authority to create the ordinance so that we COUNCIL MEETING • - 65 - • July 28, 2010 could set the parameters up to help stop the abuse and to help those that we intend to help and I've always felt that what this does is it limits the opportunity for a lot of legitimate farmers. As far as pictures of the beautiful homes, I have no problem with those, in fact you know one of our documents say that we have certain unalienable rights that among them are life, liberty and the pursuit of happiness and so a lot of people have worked hard to obtain their happiness, so there's nothing wrong with that, nothing wrong but I felt that there's been a problem with the whole process in general. I feel that the whole way that we would approach the vacation rental issue has been flawed because what it does is it eliminate the opportunity for many of those who may have interpreted the farm dwelling agreement that they signed in the first place and didn't choose to operate because it's pretty clear in your farm dwelling agreement that it's to provide income, provides income to the family occupying the dwelling and they go on and define what family is. So I just feel that I can support it, it's the same arguments I've always made but it's not to say that it's wrong, I think that it's a potential tool for farmers and whichever which way it goes, I would still encourage the Councilmembers as the President of HSAC to send something up to deal with this in what I feel is the correct manner and not just a patch and that we identify that the overall problem is that Ag is struggling to survive and so we need to .provide tools, thank you. Chair Asing: Thank you. Any further discussion? Councilmember Kawahara. Ms. Kawahara: Thank you. This has been part o£.. I know all of our lives for about a year and a half and definitely a part of my life everyday and every night for about a year and a half. What I owe to you and what I owe to the constituents of this county is the reason why I'm going to support this bill and vote for it. Today we are not approving any TVR,s on Ag land, I think that's become very, very clear. I don't think there's ever going to be another headlines that's going to say that ever, such a big error. It was said that we are not going to do this and that was two (2) years ago, there are no more and a stand was made, there are no more in 2008. The question is what are we supposed to do with those prior to 2008? I think different people have different reactions to the beach houses, the pool houses, huge private estates, section homeowners... I think those are all issues that bring up big emotions... a lot of emotions in everybody. Randy Rego, I think was excellent testimony in how there is that sensitivity. In congruency between what's happening on the island there's such a high end on this side and then there's other people that are working hand-foot, hand-mouth... trying to make it every day, every day two (2), three (3) jobs... I struggled with this because most of the time I'm right there with Mr. Rego. I'm also right there with Mr. Manu who said he was here earlier who said what about all the people that didn't do TVR,s on Ag land. Right now I think there's a general agreement that there's a collective failure on the part of the State and the County to enforce one of the strong... one of the main protections of our Ag land which is 205. I can... I am happy to say and to tell you that I feel I've done my homework. I know what the Ag opinion was, I know what the difference is when you apply to the LUC. and when you apply to the Planning Commission. I've been briefed on Hokulia, I've been briefed on the Waikiki Market Place issue, I've been briefed on what is due process, what is property takings... again this has been taken a year and a half and the only thing I can see is that we have said no and I have not as the Attorney General have seen no indication, where is it... that there is a justification for TVR,s on Ag land. I don't think anybody here has ever said that they seen any reason or justification on this table for having TVR,s on Ag land but what we are doing is saying you know what if you really think you can justify being on Ag land, you know what you're going to do... the process is you go to the Planning Commission, you're over fifteen (15) acres you go to LUC, all these people here below fifteen (15) acres you go to the Planning Commission and COUNCIL MEETING ~ - 66 - ~ July 28, 2010 that's the process, that's what's been pounded out in this bill. You're going to do a process, you're going to prove to the State law, the State law that we've all been dying to enforce, dying to follow... 205 you are going to see how you fit in 205 and the Department and the persons that are assigned to do that judgment are the Planning Commission, they are given that authority by the State to the County specifically to address this kind of permit whether or not you're going to get it or not... so none of these people are getting a permit, they're going to have to fight for the permit. And I would like to tell the Planning Commission to say, to tell them that I would like to see them take the most rigorous possible look at every single one of these people coming up for TVR, on Ag land and I can tell you that there are people that are ready to defend and say yeah I'm good and this is why. And then I can tell you people they ain't going to bother because they can't and that's what a fair process is, that is what due process is. You get to go in front of the deciding fact... the deciding body that has been authorized to make those decisions and say I am here, this is my argument, what do you think. So I am going to vote for this because that process has been pounded out here. We have failed as a State and the County to protect our Ag lands, I agree with everybody here that has said that our Ag lands are in danger and what we have done here in 2008, we said forget it, you know what, our Ag lands are too important and you know what, we're going to start to scrutinize it, we're going to look... are you really doing Ag, are you really doing Ag? Again, and I have every indication and it is their absolute duty, the County Attorney to defend the Planning Commission in any decision, if they deny any permit, our County Attorneys are going to fight it to the end. But in the process when you get there and they get the facts on record when they go to the Planning Commission, they have the tools to fight it. Not this random thing that happens at Planning Department, not the old bill that says this, this, and this and this... you know what 205 that's the golden rule, 205 you better prove you can follow it. Better prove that you show, you can show that you're doing it. And I'm, and I have full faith that the County Attorney is going to... either way which ever this way goes, they are here to fight for the County, to protect the county and if the Planning Commission and I hope they do and I would like to advise them to do, to look vigorously and very strictly at every single one that comes through. Because that is what's fair and I think that is what some of what these people are asking is just for that... give us that chance because that's the due process and we'll take what we get. And if they don't take what they get, you know what our Attorneys will fight to the end for us. Thank you. Chair Asing: Thank you. Any further discussion? Councilmember Furfaro. Mr. Furfaro: Thank you Mr. Chair. And you know we or at least through my process have been trying to come to some conclusion on this piece now for ten (10) years, if you recall I served on the Citizens Advisory Board for the General Plan and you know in that presentation less than 3/10 on one percent of the land on Kauai is actually rural designation. Three percent (3%) is urban, forty-nine point eight percent (49.8%) is conservation and forty-six point eight percent (46.8%) is agriculture and we need to get to a point that we understand that there's not a catchall category on agriculture. There's a category there and that was the mission for us to regulate transient vacation rentals, that was extremely important and Ag land wasn't a catchall. The mission in the General Plan was to acknowledge the industry that we had but at the same time, control no new growth I think that's something that this bill also does. You know I have reservations on this bill because I don't like its relationship to you know how Maui does it... Maui is Maui... Kauai is Kauai and so I have some reservations there but we also have an opportunity to manage attrition as we have people apply for special use permits and I'm a little weary of the challenges and the uncertainties in the laws that I've been reading but this certainly does draw a line in the sand, gives people a process to COUNCIL MEETING • - 67 - • July 28, 2010 apply, but also helps us manage the attrition going forward without creating new TVRs, and so I see those as the benefits of supporting this bill and you know ten (10) years is a long process for this... I also was on the Advisory Committee with JoAnn but you know I was challenged because my thirty-seven (37) year background from what I am retired is, is I'm a hotelier and perhaps people thought they couldn't get a fair evaluation because I was pro-hotel, pro-resort... well that's where I made my livelihood and that's what I understand probably best but the point here is that we also need to consider and I just... if the Planning Commission comes to us and needs some assistance like a hearings officer, someone to guide them through this process, then we should .make that that note but in supporting this bill, I certainly take the position that we have a stop light and we have no new TVRs that were not in existence prior to March 7; 2008 and we may consider the workload that will play out in the Planning Department and any new staffing that they might want to have. Mr. Chair, I want to personally want to thank you for your presentation and I also hope that you understand my reason for reviewing the rules but I think I rely on a lot on your thirty (30) years of history, I only have eight (8) years... I want to thank you for your presentation. Chair Asing: Councilmember Kaneshiro. Mr. Kaneshiro: Thank you Mr. Chair and thank you... all of you for being here today. I know this has been an issue for many years and even Mr. Furfaro Vice Chair talked about ten (10) years but I can tell you it's been twelve (12) years for me, I was the Planning Chair of the Planning Committee when the General Plan came before the full Council. So I'm very familiar about that one (1) section that we talked about, where it is a priority where Mr. Furfaro talked about there was a priority for us to do something with the CZO to address B&Bs and vacation rentals. Unfortunately as Mr. Kawakami has stated you know we are probably the problems... it took us almost ten (10)' years after we said this was a priority but we used the process... we used the process of forming a Advisory Committee, we used the process of even getting Elisabeth Kent as a mediator, we've done many processes to be able to reach where we are today. For me you know unfortunately as a farmer, as a rancher, three (3)... third (3rd) generation rancher you know someone that recently purchased land... three hundred (300) acres of land to farm, unfortunately for me approving this bill today will make it much harder for me to survive in my way of farming and enable to pay for the land that I purchased. Remember this people, the land was not free... it wasn't given to me... it was my desire to farm, it was my desire to keep this in our operation for generations to come. We talked about the great American dream as what Mr. Kawakami has stated, the great American dream is exactly what Mr. Asing put out there, a nice big house like that... or with three hundred (300) acres, who do I really affect on my Ag land. With three hundred (300) acres, I can get a nice house like this that could bring six, seven thousand dollars income to me a day... you know how much fence line I can fence with six, seven thousand dollars a day? I can fence one thousand feet of agriculture land every single day with that kind of money. I can also purchase or lease more land to be able to do that. So unfortunately for me, here I am sitting here you know supporting a bill that would curtail all of that for me as I leave as a Councilmember. The fortunate thing for all of you is that because that's not what's on the table today, I don't have to recuse myself because people have said now you're in direct conflict of what you're trying to do to farm. But you know this is a situation we face every single day. And my whole concept as being a farmer and coming from generations of farming is leave the farmers alone.... don't go enacting new laws, trying to change laws, trying to do laws... look Legislature passed this in 2006 which they amended 205-2(d) with Act 250 and agriculture tourism and thinking that they're helping agriculture when actually they're going reverse of helping agriculture, now they said no overnight accommodations and that's why we're here today. That's the debate issue, previous to that all we had to COUNCIL MEETING • - 68 - ~ July 28, 2010 do is 205 or 206 allowed us, if you look at the... 205-6 go in for special permit, go ahead... as long as you're doing agriculture which you've seen in my amendment that says that you do specific agriculture... no problem... go ahead. You want to supplement your income with ten thousand dollar ($10,000) a day, at least I can pay ten thousand dollar ($10,000) in labor and put ten thousand dollar ($10,000) worth of fence up as I stated before but you know Mr. Kawakami made a very good point that government cannot and try to stand in the way of the farmers when... if you even think about it how many of the Legislatures actually farm, how many of the Legislatures are actually involved with agriculture? And yet they're making all the laws. So you know and... typical example with a person like me, I want to help, I want to make laws because I'm in agriculture but I got to recuse myself because I'm in conflict so you know it's really a no-win situation but at the same time I want to say that... to support the bill is supportive of the idea of what we talked about the Constitutional Right of due process... 464 allows that, 205-6 through a special permit process allows this to take place... so that's what we're doing today. We're basically passing a bill to allow these people to go ahead and do that. Now who knows if maybe some of them will get it, some of them won't. By meeting the requirements some of them may, some of them won't but for those that do Ag, I don't have a problem, I don't have a problem if you rent a place out for ten thousand dollars a day, I don't have a problem with any of that because I know these people when they Ag dedicate their land, when they start farming, they are farmers by heart and they want to try to make it work. Unfortunately for many farmers, they don't participate in this process, they don't come out here, they leave us or other people to make the decisions because I can tell you, they're out there busy farming the land and really working on the land. You know we see that all the time and I know Mr. Oyama can agree to that because you don't see much farmers out here speaking in regards to any agricultural issues. But again I just want to thank all of you and even the Committee members and the Council you know for such a discussion we've had, I know it's taken about a year or so since this has been on the floor and I just think that whatever we can do to help agriculture as Mr. Kawakami has mentioned about where we need to go to the Legislature and you know be able to portray that attitude to the Legislature would be benefits to the farmers and the ranchers and as long as they're farming and ranching and trying to you know keep the land open, I don't have a problem. So I fully support this bill. Chair Asing: Go ahead Councilmember Chang. Mr. Chang: Thank you Chair, I'll try to make this real brief because I think it's really important and I just wanted to make sure that I can get this off of my chest and this is a reference to you know aloha and the aloha spirit. One of the things that I did not like about the bill and I will say and a lot of the things that did not like about the TVR,s was the fact that I had inquired with many of the people that I've got to meet about how many of these TVRs are for sale and many of them are for sale. And when you look at the people that have homes for sale you could say maybe the economy is bad, I got to sell because I can't make it meet, I'm out of here. Or maybe there's a chance that the bill is going to fail, now is the time... I got my money, I made what I want, I'm out of here. Then there's others that may say that whoa once we get the approval, our property is now worth forty percent (40%) more, so that's the difficult part that I had about the fact that you know when a lot of people say oh I have aloha, I love the island of Kauai, then I talk to the employees, have you ever met your owner... no I don't know who my owner is because a lot of the people of every place is property managed right now and the property management you know you doing to single family home, somebody sells a house... oh by the way why don't you TVR, it, I'll be your landlord or I'll be your realtor or you know I'll help you out with housecleaning and everything else and that's the part I wanted to also make, on the employment end you know if you are denied or if somebody out there that you know is denied, please let your COUNCIL MEETING ~ - 69 - ~ July 28, 2010 employees know, because you're denied hasn't nothing to do with our decision, you were denied because you were not approved. And so I want these employees to realize that you know it's not us. I had an opportunity to speak to our Planning Commission Chair and he reiterated to me that they are going to be taking a very, very hard stand and they're going to be looking at things very, very quickly and I do feel that I have to leave this... we had a gentleman that testified for several times and he tried to go through the process, the process unfortunately was stalled, it didn't work, so he came here he did a testimony and when he did a testimony and it was televised, to and behold as soon as it was televised, citations were issued to his neighbors that he tried to reason with. The neighbors consequently went out and put flood lights straight in his home, two (2) flood lights right in his home... now I'm thinking about a shearwater issue, maybe you should called the Humane Society, maybe you should call KIUC and I said you know what... I, like you, let me go call KIUC or let me go call the Humane Society, better yet... let me go to your house... so what this gentleman tried to do was put like (inaudible) mats or blinds because the bright lights was shining right in his house... so what does the neighbor do? Called the Building Department to find out to see if it's legal for him to put shades to block out the lights and the most astonishing thing about it to me, aloha spirit, this gentleman has lived here and did everything correct for fourteen (14) years, he works on Kauai and the people that are doing to him next door is a well known respected local family. So I just want to let everybody know, this is not easy, this is not tough but we need to get the process, and we have to let the process go because again through that testimony there are a whole bunch of new Sheriffs in town right now and the Sheriffs all did their oath and we can't correct what's in the past and I apologize for everything that happened in the past but I want to leave you with this, we are all responsible for making sure that the future is not like what the past was. Thank you for allowing me to say that. I just needed to get that off my chest thank you. Chair Asing: Any further discussion? Mr. Kawakami: It seems that I'll be in the minority so as the minority voice I just like to end by this... that throughout this process there were a lot of I guess assessments that our primary task was to protect the County of Kauai from lawsuits which is in partial true, we try to do everything we can to avoid lawsuits but I would just like to end my deliberation on this issue by saying that this is the oath that we take... I do solemnly swear that I will support and defend the Constitution of the United States, the Constitution of the State of Hawaii and the Charter of the County of Kauai and that I will faithfully discharge my duties as a Councilmember of the County of Kauai to the best of my ability and I feel confident that the vote that I'll be placing today, fulfills that pledge that I gave to the people of Kauai. Thank you. Chair Asing: Thank you. Mr. Furfaro: I feel equally responsible for my vote, that is also to protect the financial outcome of the County of Kauai so I just want to clarify that. Chair Asing: Okay great... well let me just end by saying this, by saying what I said in my initial presentation that I made today and I will end it that way... I want my colleagues on the Council, the County Attorneys, the Administration and the public to know that I respect each and everyone for their research, analysis, views and final opinions. And I will end with that, I have made my presentation, feel comfortable with all the things that I've done and my reasons for voting the way I'm voting. I gave you my reasons, I feel comfortable with it and I respect everyone's opinions, there will be difference of opinions all the time and I respect that so with that... COUNCIL MEETING • - 70 - ~ July 28, 2010 Mr. Furfaro: Chair Asing: Thank you Mr. Chair. Roll call please. The motion to adopt Bill No. 2364, Draft 1, as amended, on second and final reading, and that it be transmitted to the Mayor for his approval was then put, and carried by the following vote: FOR ADOPTION: Bynum, Chang, Furfaro, Kaneshiro, Kawahara TOTAL - 5, AGAINST ADOPTION: Kawakami, Asing TOTAL - 2, EXCUSED & NOT VOTING: None TOTAL - 0. Mr. Nakamura: Five (5) ayes, two (2) noes Mr. Chair. Chair Asing: Thank you. Motion carried. Thank you very much everybody. We'll take a short recess. Mr. Furfaro: Do we have a dinner... Chair Asing: Oh I think we better take a dinner break. There being no objections, the Council recessed at 6:00 p.m. The Council reconvened at 7:19 p.m., and proceeded as follows: Chair Asing: This meeting is now called to order, Mr. Clerk next item please. Mr. Nakamura: Council Chair we're on bills for second reading. Next bill for seconded reading is Bill No. 2365. Bill No. 2365 - A BILL FOR AN ORDINANCE AMENDING SECTION 21-1.3, SECTION 21-2.1, SECTION 21-2.2, SECTION 21-3.2, SECTION 21-3.3, SECTION 21-7.3, AND SECTION 21-9.1 OF THE KAUAI COUNTY CODE 1987, RELATING TO INTEGRATED SOLID WASTE MANAGEMENT Mr. Bynum: Move to approve. Mr. Kaneshiro: Second. Chair Asing: Any discussion? Is there anyone in the audience who wants to speak on this item? If not, any discussion again? If not, with that roll call please? The motion to adopt Bill No. 2365, on second and final reading, and that it be transmitted to the Mayor for his approval was then put, and carried by the following vote: FOR ADOPTION: Bynum, Chang, Furfaro, Kaneshiro, Kawahara, Kawakami, Asing TOTAL - 7, AGAINST ADOPTION: None TOTAL - 0, EXCUSED & NOT VOTING: None TOTAL - 0. Mr. Nakamura: Seven (7) ayes Mr. Chair. COUNCIL MEETING ~ - 71 - ~ July 28, 2010 Chair Asing: Mr. Nakamura Draft 3. Thank you, motion carried. Next item please? The next bill is for second reading is Bill No. 2318, Bill No. 2318, Draft 3 - A BILL FOR AN ORDINANCE TO AMEND CHAPTER 8, KAUAI COUNTY CODE 1987, RELATING TO THE COMPREHENSIVE ZONING ORDINANCE (Farm Worker Housing) Chair Asing: Thank you. What I'd like to do is why don't we take the amendment first, clear the amendment, approve the amendment and then we'll take the public testimony. Mr. Kawakami: Move to approve. Mr. Nakamura: Council Chair? Chair Asing: Can I have a second. Mr. Nakamura: Oh. I'm sorry Council Chair for the record Councilmember Kaneshiro has recused himself from this matter. There being no objections, Mr. Kaneshiro was noted as recused from agenda item Bill No. 2318, Draft 3. Chair Asing: Yes Councilmember Kaneshiro is excused. With that we have a motion and a second and then can we... Mr. Furfaro: Do we have to make a motion... Chair Asing: To amend... Mr. Furfaro: An amendment as circulated. Chair Asing: As circulated. Mr. Furfaro: (mic not on) Mr. Nakamura: Council Chair, I'm sorry Council Chair... I think we needed a main motion on the bill... Mr. Furfaro: We did. Chair Asing: We did. Mr. Furfaro: Mr. Kawakami made the motion. Mr. Nakamura: My apologies I missed it... so Councilmember Kawakami on the main motion and the second was yourself? Mr. Furfaro: I seconded yes. Mr. Kawakami moved for adoption of the bill on second and final reading, and that it be transmitted to the Mayor for his approval, seconded by Mr. Furfaro. COUNCIL MEETING ~ - 72 - ~ July 28, 2010 Mr. Furfaro moved to amend the bill as shown in the Floor Amendment attached hereto as Attachment 3, seconded by Mr. Kawakami. Chair Asing: Okay now we have a motion and a second on the amendment. And the amendment is being passed around now and you can give members of the public the amendment. Is there any discussion on the amendment... would you like to... Mr. Furfaro: Yes I'll give some highlights... the main purpose over here of this amendment is just to really identify people who do not have density for say on an active farm lot right now that number one (1) recognizes should they get the density through their application, it is their primary house that they are getting for the purposes of agricultural activity as well as the next part is... as we may or may not all know when the important ag land bill is passed on important ag lands, subsequent jurisdiction over those pieces will actually go to the IAL and they may make a decision about giving farm worker housing density without actually needing to apply to the County of Kauai. And because they would believe that their final scope of important ag lands would supersede any of our zoning codes and I don't necessarily with this amendment that we are really doing anything that really relates to the consequences of lands that don't become important ag lands that people still have a process to apply at .our Planning Commission level but it also recognizes that the purpose of the farm worker housing will be the farmers... farm owner's exclusive residence if they should get a farm worker unit on a parcel that does not carry current density. That's pretty... Chair Asing: Thank you. Councilmembers any questions? If not... Mr. Furfaro: Maybe we should open to the public if they got a circulation of this... Chair Asing: Okay. Well, do all of you have a copy of the amendment? Is there anyone in the audience who wants to make any comment as it relates to the amendment? Mr. Furfaro: Please come right up JoAnn. There being no objections, the rules were suspended. JOANN A. YUKIMURA: Good evening Chair Asing, members of the Council. JoAnn Yukimura for the record. As I see it, and I haven't had much time to look at this, there's two changes recommended, one on the first page and one on the second. It's the first one that I want to address. If I misunderstand the intention or the substance of this, please correct me, but I'm understanding this to say that the farm worker housing bill will not have any effect for any lands that are designated important ag lands. Mr. Furfaro: JoAnn, I kind of went over that briefly, and it is my understanding, and I'll call one of the attorneys to help, that when the State determines the important ag lands that their new policy of housing will supersede what we have. And that's what I was trying to get at, because we don't know which lands they will indentify as being the important ag lands. So you know, that was the intent here of the first part. When it's being designated as important ag land, you know, under Chapter 205, the IAL group, the State group, may feel that...when a presentation is made to them about the need for farm worker, they supersede what we might have in place, but at the same time, we would want to have what is in place identified now so that bona fide farmers can move forward. But you know, COUNCIL MEETING • - 73 - • July 28, 2010 what happens if certain lands don't get classified important ag land, but yet they're producing agricultural products. They will then still have an opportunity to be in front of the planning commission with their application. You know, it's a kind of an unknown right now. I mean for me it's absolutely not an absolute necessity; I just wanted to put it in there so... Ms. Yukimura: Okay. My understanding of agricultural law or laws regarding agriculture lands is it's a dual tiered system, and so you have the State laws and then you have the county laws, which are usually allowed to be stricter than State law. in the case where it's a regulation. And what concerns me is that the State if often out of touch with the practical needs of farmers and farming issues, and often, in my opinion, much more vulnerable to special interests. But if you look at the Section 205-45.5, which talks important ag lands and farm dwellings and employee housing, there's some real gaps in this bi11...I mean in this...the provisions of 205, because you know, contract workers were really an important part and they're not included, and some of the safeguards that we've included in our bill are not included too in terms of what a real farm is. And so... and we've also said that... all along that this work that we're doing on farm worker housing would be good practice and would give us some experience in preparation for important ag lands, because if we think this is going to be strict, important ag lands will raise the whole issue of farm dwelling units that...I mean arguably on important ag lands it really has to be a farm dwelling related to a farm, which goes to what is a farm and all of this issues. And we're getting practice dealing with this now. So what I, you know, it is poss... and I don't know what the...I mean who is the State? Is it the department of ag, because... Mr. Furfaro: It's department of ag. Ms. Yukimura: Because when I call the department of ag and ask them, because on part of 205-45.5, in the law right now it says, the plans for farm dwellings and employee housing units shall be supported by agricultural plans that are approved by the department of agriculture. So I called them and I said, what is your procedure for approving plans? Mr. Furfaro: Still unknown. Ms. Yukimura: They have nothing. Mr. Furfaro: Yes. Ms. Yukimura: Do you have rules? We don't have any money or time to develop rules. You know, and their thought was, oh we'll work with the county planning agencies, which is what we're talking about how this thing's going to work at the county level. Mr. Furfaro: Absolutely. I understand what you're saying-we want a template of a plan in place so that they may adopt it, in a sense. Ms. Yukimura: Right. Mr. Furfaro: I understand that you're saying. But you know, when I look at the bill, it's very clear, even on parcels of 900 acres, in IAL they're saying as much as 50 acres of that can now become farm worker housing under their control and becomes residential and kind of bypass our fees. Ms. Yukimura: That could be like another town. COUNCIL MEETING ~ - 74 - • July 28, 2010 Mr. Furfaro: Yes. Ms. Yukimura: And which is why I think we have valuable input to give to the State process. And in the earlier conversations about how the lawmakers have been at fault, it's not only the lawmakers, it's really the planning department director and all that, because I want you to know that when I first got into politics, nothing could pass at the State level unless the four planning directors of the counties, Ray Suefuji, Brian Nishimoto, Ralph Ishikawa?...I forget the Maui planning director. They... and actually it was more the three neighbor islands planning departments. Unless they approved, nothing could get through at the State level. That's how influential and how proactive our planning departments were. They were there day and night during the legislature to say this will not work with our planning process, or this is what we need, or whatever. And we've...in the last 15, 20 years, we've just been...we just .rolled over to that. So coming back to this particular issue, I mean we've done a lot of work, we've got a lot of input from grassroot level, from farmers. And so I'm just...I don't want to just acquiesce to this idea that it's going to be a State determined process, because if you look at the past, it hasn't been; it's been two-tiered, and we should participate in a process.. So one of the thoughts is to leave it out for now and to say we want to work with you, how are we going to do this, what are your ideas, and would you consider ours. Mr. Furfaro: That idea has crossed my mind, but again, we have had testimony from the State organizations like LURF that have encouraged this. But it's, for me, it's not a deal breaker. Ms. Yukimura: Well you know, what doesn't...what's hard is LURF's not here; they're not here to talk to, so I don't even know what they're thinking, and that's part of the difficulty. Mr. Furfaro: I'll share with you what they wrote to us; their concerns were. But we did get correspondence from them, and... Ms. Yukimura: Well, that would be helpful to be able to respond to it. Maybe it's totally logical and correct, but I have a lot of questions. Mr. Furfaro: Let me recognize Mr. Bynum; he has a question for you. Mr. Bynum: Actually, I'll save and discuss it when we're back in order. Thank you for your testimony. Mr. Furfaro: Okay, very good. Ms. Yukimura: Okay, you're welcome. Mr. Furfaro: Thank you JoAnn: Ms. Yukimura: Thank you. Council Chair Asing: Yeah, my comment to the conversation is that no matter what we put down, it's not going to matter, because the control is still going to be on the State level. That's the way the Leg has set it up. It is set up that way. They have total control. So with that, thank you. You want to talk about the amendment? Okay, come up. COUNCIL MEETING • - 75 - • July 28, 2010 LINDA NEUMAN: Hi my name is Linda Neuman, and I am reading this for the first time, and under section d, number 3, the subject property's maximum residential densities as established in section 8-7.5 have been permitted and constructed. If the applicant can demonstrate that the subject property is a unit in a condominium property regime and that the maximum allowable residential density for the applicant's CPR unit has been permitted and constructed, the planning commission may waive the requirements of the provision. Could you explain that a little bit, because I'm not understanding that particular... Council Chair Asing: Go ahead Mr. Bynum. Mr. Bynum: The way I read it, Linda, is if you're on a CPR that has no density, then they can waive this requirement so you... if you qualify under the bill, could get the farm worker housing. Ms. Neuman: They all have to be built, though. Is that correct? Mr. Bynum: Only the ones on that particular CPR unit. So if the CPR unit has one density, you got to build that first. If it has zero density, they can waive it for that CPR and allow them if they meet the provisions of the farm worker housing bill. I think that...I mean this was an attempt to address what I think is your concern. Ms. Neuman: Well, just...not all CPRs require people to build. When they have the density, they aren't building. And so if they aren't built and they're not permitted... Mr. Bynum: If they're not built 'on that CPR, they couldn't do farm worker housing until they use their density. Ms. Neuman: Oh, they couldn't, but other people... Mr. Bynum: They couldn't... But other CPRs that had no density, this would allow, if you meet the criteria, to build the farm worker housing. Ms. Neuman: Thank you. Mr. Furfaro: Let me add on to that. And you had to be the resident of that farm worker unit. Mr. Bynum: Right. Ms. Neuman: Thank you very much. Mr. Furfaro: That's the other important part to this. Ms. Neuman: Appreciate that. Council Chair Asing: Thank you. Is there anyone else? Mr. Nakamura: Council Chair, we have registered speakers, Anne Punohu, followed by Louisa Wooten. Council Chair Asing: Oh, go ahead. COUNCIL MEETING • - 76 - • July 28, 2010 ANNE PUNOHU: Aloha. Anne Punohu for the record. Am I allowed to also comment on the bill itself...in total, or am I only allowed to comment on this amendment? Council Chair Asing: We're going to just take the amendment first. Ms. Punohu: Amendment first, okay. I think that the CPR issue is good to be in there. The important ag lands issue, I just question what I would say in totality with this bill is that every farm worker that is living on property right now that is not being adequately housed has the right to be adequately housed under the federal law, and that the federal law has a very good framework to do this entire process, and I think I brought that to your attention several times. So I am unsure how adding this IAL into here will help or not... or hurt or not hurt the situation. I wouldn't be in favor of anything that would make the process any more complicated or convoluted at this time. I think the urgency is to get this housing for the farm workers as soon as possible and get something passed that will give some relief to the farm workers themselves. So I have no objections to the CPR thing. I'm still questioning and not quite understanding the AIL(sic)...the important ag land portion of it. So maybe I have a question about that...maybe just a little bit more clarification possibly? Council Chair Asing: Okay, Councilmember Bynum. Mr. Bynum: Because we're on this, I think that the Chair's correct that the way the law's written now, if it's designated important ag, and the department of agriculture can, you know, has the power regardless of what we put in here to determine it. But what JoAnn said is also true that they haven't done a great job of giving us guidance in the past, so my own personal preference would be that this not be in there, because as Councilmember Furfaro has said I think quite eloquently, we're hoping the State will see the effort we put in and use this as guidance. Now having said that, you know, it may... we may want the State to be maybe even more restrictive on IAL, right? I don't know, but the Chair I think is correct-they're going to do what they want. But if we .leave it in there, I think there's a good chance the State will say, oh Kauai is giving us guidance, we're not going to get any less restrictive than that. So my own preference, it would be in there, but I'm going to support this bill whether it's in or not, right. So you know, I would... and I know when we call it back to order and talk with each other I'll say, gee can we do this amendment without that, because I think Councilmember Furfaro's made a really good point that... and the State, because they don't do it on their own, will probably...I think he's correct, that we will have made our desires known and that they may follow that as a template. Ms. Punohu: Okay, I think...just my question is, again, is why is not only the State, but the county looking at the federal process which is already laid out and extremely clear? Mr. Bynum: No, that's a separate question. Ms. Punohu: Okay, then I'll just go sit down and wait for discussion. I'll come later for the full bill. Thank you. Council Chair Asing: Thank you. Do we have another speaker? Mr. Nakamura: Next speaker is Louisa Wooten. LOUISA WOOTEN: Oh hi, it's Louisa Wooten for the record, and what I was going to say was I signed up not necessarily to speak on the amendment, but I COUNCIL MEETING • - 77 - • July 28, 2010 will say a couple of things. On page 2 the wording here, I read it backwards and forwards and forwards and backwards, and to me it doesn't say anything differently. It's just a different way to putting it on the paper, pretty much. Having listened to the previous amendment and having people noted that, you know, we were waiting around for a CZO so that we didn't have to pass an ag moratorium, are we going to wait around for an important ag land study that hasn't really got any real good directions to pass the farm worker housing bill. I don't think that's what...that I mean I don't know that the farm worker housing bill should depend on the unknown, you know. That's all I have to say about that, but as far as the wording on page 2, I've read it, it's just a scrambled way of saying the same thing as what we already had in the bill. Council Chair Asing: Councilmember Furfaro. Mr. Furfaro: I'm sorry if you perceive it as being soft scrambled, but hey, they're still scrambled eggs. You just referencing the IAL, just so that we all know, they have 20 meetings scheduled. I think they're on meeting 5. Their process will be to review all of these areas within the planning department and with their 21 member commission, I believe, we don't see a recommendation until November of 2011. So you know, no, I'm not intending to have a situation where we're waiting for IALs to catch up with us. What I am anticipating is kind of what the Chair said. No matter what we send to them, it would be better for us to have a template that says what we're doing than it would to find them not saying, oh maybe we can look at exactly what Kauai is doing. Ms. Wooten: And that's what we really felt in our working group all along too, Jay. Mr. Furfaro: So that is right in the passing of this. And the other piece, just to reiterate to everyone, if somebody has a CPR that actually has a producing farm but no density, as long as it is the owner, they can apply for this use permit. Ms. Wooten: Right, and it is... a little scrambled... It's saying the same thing, but more better, more better. Mr. Furfaro: More better. Ms. Wooten: Okay, thank you. Council Chair Asing: Thank you. Is there anyone else? Roy. ROY OYAMA: Well Council Chair and Councilmembers, wow, what a day for me, spent all that hours. But anyway, we got to pass it tonight, or else. Well anyway, I mean I'm not too happy when we always to have more amendments, and you just puzzling the situation even deeper and deeper. Now, as to the IAL issues, yes, the State has more... much more power than we do, we know that. And I don't think we should be trying to lobby a bill to help protect them, because they can do whatever they want. Concerning department of ag, JoAnn is right. This administration did hardly anything to protect agriculture, period. Very disappointing. I got to be open, because I'm a true honest man, and I would say it like it is and where it should be heard. Now I don't want the county council to be in that frame, so please, get your ducks together and act on it property, but do not talk all hot air and can't even serve us. You know how much of our segment of agriculture is slipping from the department of ag, and yet this is going to be under department of ag on IAL, and how many more? Very disappointing. So I am not rooting for department of ag at this point. I believe our county should move COUNCIL MEETING. - 78 - ~ July 28, 2010 whatever we can for the farmer. We got to move ahead for our farmers. You all know. You all talk about good words of sustainability for the island. Well, that's walk the talk, and not talk and talk. So that's where I leave it, but I just want to make sure, we got to start walking our talk, because we're not doing enough walking. I'm not trying to be here to lecture you, but I want to be serious about it, because you know, the hours that we spend here, you know that, I should be back on my farm- to...even I'm retired, my productivity is down. So what I going to do? I'm concerned about my customers too, they waiting for my product when I'm down. So I hope you guys know. That's the reason why you don't have much farmers. They cannot afford the time they got to spend waiting and waiting and waiting for the final vote. So please let's make it tonight, okay. Thank you. Mr. Furfaro: Roy, don't leave for a second. So Mr. Chair, may I pose... Council Chair Asing: Go ahead. Mr. Furfaro: You see here on page 2 where the amendment basically is referencing the CPR lots that may have a productive farm on them and in fact even if they are a CPR, they could apply for this farm worker housing, and they could apply with it as long as they are farming. It goes on to say that if they stop that activity, this is not giving them permanent density. Mr. Oyama: Okay. Mr. Furfaro: That's what I'm trying to clarify. Mr. Oyama: Right. I understand. I understand... Mr. Furfaro: That you have a bona fide farm. But I just also wanted to point out that I think the Chairman is right. You know, when the State comes in, it says you know, this is what it is, they're going to supersede us and we... Mr. Oyama: Yeah, it's all blank for you. Mr. Furfaro: But we want to say we have a plan in place. Mr. Oyama: Yeah, you have a plan, that's why I'm saying, you know, I don't want to depend on the department of ag much more, because we going to be further behind. Council Chair Asing: Councilmember Bynum. Mr. Bynum: So just... so you'd prefer that we not have this exemption for important ag land. Mr. Oyama; Definitely, because I have no faith in department of ag at this point, speaking from my level. Mr. Bynum: If we took this out and it just said you have farm worker housing, you have to get a use permit, the DOA might...the department of ag might say, well you got to do this too, but hey, it says in county law you got to get a use permit, go get a use permit. And that'd be your preference. Mr. Oyama: Yeah. Mr. Bynum: Right. COUNCIL MEETING • - 79 - • July 28, 2010 Mr. Oyama: Because the reason is this: we can put it down, you know, we can put it down, yes, you have something in place, they can see it. But today, and when did they demonstrate that they followed a county's policy? Look it up in history. Mr: Bynum: Yeah, yeah. Mr. Oyama: Especially in ag. Act 205 is a big old blunder for us. I have to say it honestly. I mean I'm going to be frank about it, because we cannot be kidding around. We are working very hard, and we cannot spend time here just to lobby to save our soul. Mr. Bynum: Mr. Oyama: Council Chair Asing: Thank you Roy. Okay? Councilmember Furfaro. Mr. Furfaro: Thank you. And on page one where it says item 7 here, for farm worker housing, unless the property has been designated as important agricultural land pursuant to 205, this is saying that people...they don't...if they got a bona fide farm, they do not have to be identified by the important ag land; they can still apply because they have a bona fide farm. That's what this is here. Mr. Oyama: Yes, this is your county control. That's okay, but another question pops up, because I hear it a lot in my background. We have a lot of farmers there, you know, is in question to the violations of the property, and you know what I'm talking about. Because they are on land without no density, and they try the best to get it and honestly do it, but nobody can be there and arguing with them all the time. They have been going in with their permits or whatever they have to submit, they do it, I know. Many of them tell me, but many of them, being so busy, did not keep all of the receipts of what was sent to them. So this is an area that I'd like to make sure that the real farmers is going to be protected. Mr. Furfaro: And I'm trying to say in this, regardless of what happens with important designated ag land, if you got somebody with a bona fide producing farm, they can still apply. Mr.Oyama: Yes, well that's what I'm saying, okay, and I hope... make sure we understand both sides. Okay, thank you. Council Chair Asing: Councilmember(sic) Yukimura. Mr. Oyama: Get the vote done tonight. Ms. Yukimura: JoAnn Yukimura for the record. I just wanted to add one thing. Actually this amendment on page one means that if a land...a parcel is designated important ag lands, they don't have to follow this bill. And under the . State law, it's much looser. So if we're worried about abuse, there's more probably of abuse on important ag lands than will be on non-important ag lands. Because we're saying that this law won't apply to important ag lands, and this is the law that has all the safeguards. So that's what I'm worried about. Now, this bill doesn't cover all the larger lots, and there'll have to be some modifications, but I'm saying that that could be done better in conversation with the State and with COUNCIL MEETING ~ - 80 - ~ July 28, 2010 Jerry Ornellas who sits on the important ag lands committee as an aftermath rather than right now, because otherwise, the important ag lands won't have the protections we worked so hard to put in here. Mr. Furfaro: Yeah, and I appreciate your comments that there are some pretty good controls in this bill. Council Chair Asing: Thank you. Any questions? If not, I'd like to call the meeting back to order. Can we have further discussion on the amendment? The meeting was called back to order, and proceeded as follows: Ms. Kawahara: Can I have a point of information? Council Chair Asing: Go ahead. Ms. Kawahara: Since it seems like...is there such a thing like dividing the question so that we can vote on the IAL part and then vote on the other amendment? Mr. Furfaro: Actually, when you divide the question, you actually are asking for a vote on the question by division. So I think we can talk about the two parts of the amendment; we can put them in two separate forms and vote on them as two separate amendments, if that's what you'd like to do. Ms. Kawahara: That's what I'm hoping. That's what I'm asking. Thank you for understanding what I'm trying to ask, to have them put up separately. Council Chair Asing: Okay, if it is the wish of the council as a whole, what I would ask is that withdraw the motion and the second, and then do a motion to do two separate amendments, and then we'll vote on each amendment separately if the members wants to. That way we'll do one, vote on it, and then we'll do the second one and vote on that. So that's another option, and if you want to do that, then I would suggest we withdraw the motion and the second, we'll do a new motion, and the new motion will be that we will handle the both items separately. So what is your choice, Councilmembers? Mr. Furfaro: I would like to take a recess for the staff to fix the two amendments. I do also want to say again, you know, I'm just anticipating the future, that's what I'm doing here, and you know I'm not totally sold on this, but I think there is the second part, which is really important, which allows people who have activity, farming activity, with no density as long as they are the farmer that's living in that unit. So I think dividing this piece would be appropriate. Council Chair Asing: Okay; any further discussion? Go ahead. Ms. Kawahara: And I do...I thank Vice Chair Furfaro for allowing us to do that, and I want to thank him for looking ahead into the IAL, because I know a bunch of us have gone at different times and we've been watching the process of IAL. So to have considered it and thought to maybe put it in was I think a good thing, and thank you for taking up (inaudible). Mr. Kawakami: Could I make a suggestion? Council Chair Asing: Yes, go ahead. COUNCIL MEETING • - 81 - • July 28, 2010 Mr. Kawakami: Maybe if what I'm hearing is correct and the vice chair is saying he's more concerned about the second section be in there, instead of having two amendments come out, maybe what we can do is if there's an agreement for him to just not include the first part of the amendment which deals with IAL. You might want to just scratch that and just come with one amendment, if that's what the wish is. " Mr. Nakamura: Council Chair. Council Chair Asing: Yes. Mr. Nakamura: Peter Nakamura, County Clerk, for the record. I think one of the ways you could do it, just because of the way the amendment is structured, is structured to amend two different sections of the bill, is to take it ad seriatim and just vote on the amendment for section 2, which contains the important ag land section, and take that separately, and a vote on that separately from the vote on section 3, which includes the next amendment. So it basically would be taking it seriatim. Council Chair Asing: Okay, that's another option. Mr. Furfaro: That's another option, and... Council Chair Asing: We can do that. Mr. Furfaro: I would appreciate as we vote these various times that we ask the Clerk to read that so that we're all... Council Chair Asing: Now is it our understanding that item 7 would be read as one amendment, and then would we be taking one and two on page 2 as the next amendment? Am I... Mr. Furfaro: That's how I understand the Clerk's offering. Mr. Nakamura: Yeah, Council Chair, I think, though, just the way the amendment is structured, section 2 contains the amendment to section 2, which is the first section of the floor amendment, contains the important ag land piece. Section 3 of the bill contains the other piece. So you could vote on these separately. And what we would need is a motion from the council, an approved motion, to take the amendment seriatim. Council Chair Asing: Okay. So you want... do you want to do any changes, or are we fine? Mr. Furfaro: No, I think if we take it just like that, we go with section 2 first; it only puts me in a delicate position, because I introduced the amendments. I am not that attached to the section 2 piece, but I may have to support my own amendments, just so you all understand that. Mr. Kawakami: Absolutely. Council Chair Asing: Okay, with that... Mr. Nakamura: If we could get a motion, Council Chair, to take the floor amendment in pieces, or seriatim. Council Chair Asing: Okay. COUNCIL MEETING • - 82 - ~ July 28, 2010 Mr. Kawakami moved to vote on the floor amendment seriatim, seconded by Ms. Kawahara, and unanimously carried. Council Chair Asing: Okay, that motion was to vote on each item separately. So with that, can we have the first item please. Mr. Nakamura: Council Chair, on the floor amendment that's been moved and second, introduced by Vice Chair Furfaro, the first section of the vote on the floor amendment would be to the proposed amendment to Section 2, which is an amendment to Section 8-7.3 in the bill, which requires a use permit unless the property has been designated as important ag land pursuant to chapter 205 of the Hawaii Revised Statutes. Council Chair Asing: Okay, that is on the first page. Am I correct? With that, Councilmember Bynum. Mr. Bynum: So understanding the...how we're doing this, my preference as I stated is that sections...that number 7 not be part of the bill. I don't think it's a huge issue, but I think I see some potential problems if it's in there, and no problems if it's not. So in order to remove this, I intend to vote no, but I totally support the other part. Council Chair Asing: Okay, Councilmember Kawahara. Ms. Kawahara: Yes, given the testimony we have and also I have reservations also about that amendment in section 2, 8.73, number 7, I support the second amendment that we're looking at, but this one I would agree that having it out of there would probably be cleaner, but I do want to recognize that it was an effort to acknowledge that there is an IAL process going on. I just think it'll be cleaner and maybe a bit premature if we put it in now when we can wait till later. Thank you. Council Chair Asing: Thank you. Any further discussion? We're on the amendment which is on page one. Mr. Furfaro: Section 2, item 7. Council Chair Asing: Yes. All those in favor say aye. The motion to amend section 2 of the bill was then put, and failed by a vote of 1:5 (Mr. Bynum, Mr. Chang, Ms. Kawahara, Mr. Kawakami, Chair Asing voting no; Mr. Kaneshiro recused.) Council Chair Asing: The motion does not carry. With that, can you read the second item of the amendment. Mr. Nakamura: Just for clarification, Council Chair, the motion to approve the amendment in section 2 failed by a vote of 1:5. Council Chair Asing: Yes. Mr. Nakamura: So that section... the amendment contained in section 2 of the bill will be stricken from the floor amendment. The second section of the floor amendment that's now up for consideration is an amendment to section 3 of the bill, and it deals with the...on page 2 of the bill, with the definition of farm worker, and it adds...it takes out a section of that definition and adds the COUNCIL MEETING • - 83 - • July 28, 2010 following: that the proposed farm worker housing will be the farm owner's exclusive residence, and 2) that the affected lot has been subject to a condominium property regime and the respective condominium property regime unit does not qualify for an allowable permanent...for any allowable permanent density. That would be the portion of the floor amendment that's still surviving. Council Chair Asing: Thank you. We have a motion on the floor to approve the second portion, which is on page two. Any discussion? All those in favor say aye. The motion to amend section 3 of the bill was then put, and unanimously carried. Council Chair Asing: Motion is carried. Thank you. Mr. Furfaro: Thank you Mr. Clerk, as I didn't want to take on five people the first time around. Council Chair Asing: Now that we have the bill as amended, we have the complete bill now. With that, I'd like to open it up to the public for public testimony. Do we have any registered speakers? None. With that, Anne please. There being no objections, the rules were suspended. Ms. Punohu: Aloha, Anne Punohu. I am now representing the Kauai fair housing law coalition in my capacity as the person who's running that coalition. I am going to be very happy tonight to see Uncle Roy happy tonight, because we really need to pass this bill. You know, we have people sleeping on the ground in unsanitary conditions. This is extremely important to get these people in decent sanitary housing. Here is an opportunity to support real farmers. I just want to just...but I also want to throw it in, yes, I'm in support of the bill; however, I want to also bring to the council's attention that we may have some gap housing issues for farm workers on the island and that I have been doing due diligence and trying to get, you know, the federal government to step in and look at building some sort of permanent facilities in a centralized hub on the island, which I'm hoping to see us be able to work with KEO, the farm workers bureau, and others to get that housing also. However, I think that this is a very huge step, finally, in the right direction for real farmers doing real agriculture with real farm workers. So I'm hoping to see this pass tonight. Thank you. Council Chair Asing: Thank you. Can we have the next speaker please. Ms. Wooten: Louisa Wooten for the record, and I signed up to speak to this part of the bill, and I'm so sorry that a1T the other farmers didn't stay to also give input on the bill; there were so many in the room. But I also have a little token here that I want to give to you all, and it's...I'm hoping that one of the ladies will pass this out to you, because this is my final seven cents worth, and these are pennies from another island where I was fortunate enough to live at one time, the Kingdom of Tonga. And if you read on the coin that you're being given, in the Tongan language it says, fakalahi mea kai. And if you look on those little seniti, you turn them over, on one side you have an ear of corn, and on the other side you have a pig. And unlike American where our coins say In God We Trust, fakalahi mea kai means grow a lot of food. And certainly I can tell you that if anyone trusts in God, it's the Tongan people, and I don't know if you've been fortunate enough to know any of them, but they're very religious and wonderful people. But their coins that they carry every day pretty much says what their motto is, because the ship only comes in once a month to Tonga. So it says fakalahi mea kai, grow a lot of COUNCIL MEETING. - 84 - • July 28, 2010 food. And some of them have watermelons, and some of them have pigs, and some of them have (inaudible), and some of them have breadfruit. But that's my final seven cents worth. Thank you so much. You guys are awesome to do all of this. It's not a bribe. I wasn't sure about that, if it was the appropriate time. Ms. Kawahara: Thank you. Council Chair Asing: Thank you. Tim. Mr. Bynum: I'm sorry, I had organic spinach from your farm this week; it was delicious. Ms. Wooten: Okay, great. Awesome. Thank you. Council Chair Asing: Is there anyone else? Ms. Neuman: My name is Linda Neuman, and I stood before you a year ago and pleaded with you to pass this bi11...I'm getting all choked up. This is really an emotional issue, and you guys today have been through so much. I can't imagine what you go through day after day, and I understand how hard it is for you to make these decisions. But I want you to know that by passing this bill, you will give us some hope to a situation that I didn't bargain for and...but farmers are strong, and we will persevere, and we will win, and I hope with that that you do pass this bill. And I hope to be selling you my produce soon, and I hope you will buy it, and it will be good, and I want to thank you very much for all that you've done, because this has been a hard long road for all of us. And I hope you vote for this bill to pass. Thank you. Council Chair Asing: Thank you. Can we have the next speaker please. AL CASTILLO, JR., County Attorney: Council Chair, excuse me. Al Castillo, County Attorney. I would just like to read the code of ethics standard of conduct, and I think it's important, because just so that there's a full disclosure here. No officer or employee of the county shall solicit, accept, or receive directly or indirectly any gift, whether in the form of money, service... Let me read it all first. I would like to read it in totality. (Inaudible), travel, entertainment, hospitality, thing, or promise, or in any other form under circumstances in which it can reasonably be inferred that the gift is intended to influence him in the performance of his official duties or is intended as a reward for any official action on this part. So that's what the rule is. Council Chair Asing: Thank you. I want to thank the county attorney for getting us out of trouble. With that, can I have the next speaker please. Mr. Oyama: Roy Oyama for the record. And now I can smile, so I'll smile to you, thank you. And the county attorney, Al Castillo, is a great guy. I know him very well, and he does his job well too, so I hope you all respect him. And of course thank you for Louisa for trying. It's an aloha spirit actually. Right, Louisa? Right? That's what it is. Would that pass, Mr. Attorney? Well anyway, we're happy, you know, what has happened so far, and it is a big night for tonight really, and it's, you know, we all going home tonight, I hope everybody be happy, and I'd like to thank you. ahead of time, because I think I have a vote of confidence when I see... I really... deeply in the farmers heart, I'll let you know, that they want to reach you. That's the reason why Louisa was trying to reach you people, okay. It is not something she want to give. It's coming from their heart because of the struggle in farming, and it's not an easy life. They have a milking dairy. They do cheese. They do other products. It's a lot of work, and we have other farmers too, COUNCIL MEETING • - 85 - • July 28, 2010 as you know, Ned, and Becky, we have several more, and I don't want to go through all of that. But I just want to make sure that the council is appreciated. We thank you all, and I hope we can somehow connect in the future areas of how we can improve our agriculture movement on the island. I'm looking forward for that strongly, because I know some of you are looking for some additional bills to come forward. Please don't, you know, be hesitant to call upon us and we would like to cooperate and work on it and make sure we have Kauai being sustainable if at all possible. Thank you. Council Chair Asing: Thank you. Is there anyone else who wants to speak on this item? Going once. Going twice. Thank you very much. I'll call the meeting back to order, and can we have a motion to approve the bill? The meeting was called back to order, and proceeded as follows: Mr. Chang: Move to approve. Mr. Bynum: Second. Ms. Kawahara: Second. Council Chair Asing: Okay with that, I'm going to turn the chair over to Councilmember Furfaro, and I'm going to make a short presentation. Thank you. Council Chair Asing: Let me start the presentation now. Let me first of all say that I support the intent of the bill, but I have grave and serious reservations about the bill the way it is structured today. I believe that it is bad planning, and the also it will reward people who are currently violating the law and have been violating the law for years. In order to understand the motive behind the bill, I will give you a little background information. I did share some of this information with you before, but I will try to skim over it on the portions that I've done before. When Amfac sugar plantation stopped cultivating the land in Moloa`a, it developed an agricultural subdivision and leased the lots to farms from Kilauea to Kapa`a. In 1998 a corporation called the Moloa`a Hui Inc. bought the property from Amfac. Under our zoning ordinance, ag land can only be subdivided once. In order to develop the property, Moloa`a Hui applied for a variance permit that allowed it to consolidate the lots created by Amfac's ag park, and resubdivided into two lots. One lot consisted of the open zoned lands, and the other lot consisted of mostly ag land. The corporation's application outlined the proposed use of the property and it sounded good. It sounded good, and I totally agree with it...the plan, but the plan is not being followed today. People are breaking the law and have been for years. Let me start with the first slide. I did cover this, and what this is in 1998 there was a variance permit, a class IV zoning permit, and the application went through, and the permits were approved. And this was in 1998. You can do the next one. Now this is that proposal. Description of the property: the land which is the subject of the proposed permits located in Moloa`a and Papa`a. These parcels of land approximately 727 acres total size. The subject property is classified by the State land use commission as Ag District and Conservation District. Permit uses on the subject property. The subject property is presently being used for agricultural purpose. The subject property was part of lands formerly owned by Lihu`e Plantation Limited, which were subdivided into a 22-lot agricultural subdivision. These lots were leased by Lihu`e Plantation to the Moloa`a Farmers Cooperative and were used for cultivation of papaya and other crops. COUNCIL MEETING • - 86 - • July 28, 2010 The applicant intends to consolidate the various parcels comprising of the subject property and subdivide the consolidated parcels into two lots. Lot one will be approximately 592 acres in size and will contain lands formerly leased as and used for agricultural lots by the Moloa`a Farmers Cooperative. Lot two will be approximately 131 acres in size and will contain lands which formed the buffer area around the former ag lots, and those were the open portions. On the bottom here... The applicant intends to establish two agricultural condominium property regimes on lot one, and they will call it Moloa`a Hui I and Moloa`a Hui II. The applicant intends to establish two agricultural condominium property regimes at Moloa`a, and I just read it, one and two, and there will be a 19 unit CPR; that was their plan. The owners of five of the units will be entitled to construct a single family residential farm dwelling for a total of 5 farm dwellings. The owners of the remaining 14 units have no right to construct farm dwellings. All of the units, included those entitled to farm dwellings, will be used for agricultural purposes. Moloa`a Hui II will be an 18 unit CPR. The owners of the four units will be entitled to construct a single family residential farm dwelling, for a total of 4 farm dwellings. The owners of the remaining 14 will have no right to construct .the dwelling. Bottom line of all this is 9 dwelling units are the maximum units that would be allowed, and that's the bottom. You want to go back again? The maximum housing density for lot one, that's Moloa`a Hui I and II, will be 9 farm dwellings. These lands will continue to be used for agriculture purposes and I don't have to read the rest. Keep on going. This is that parcel, and as I told you, this is lot orie, this is lot two. Lot two is not in the picture, so this area here is the project area that we're talking about. The next one. And remember my saying that you had...they called it Hui one and Hui two, and Hui two had 4 dwelling units allowed, and Hui one had 5, so the total amount of units is 5 plus 4, and 9 allowed in here. And you see the 28 here that units not allowed for housing. Total units at that time. Now since that time, let me just explain first. Here are the units that are allowed, one, two, three, four, five, six, seven, eight, nine. So this is the initial 1.998 proposal and only 9 of these units. Since then, what the developer did, if you recall the previous slide, it was a total of I believe 37 units; plus the 14. But what they did was they kept on CPRing properties in here, so that the bottom line now today as it stands, the total CPR units here is 61 units. Of the 61, the 9 that is here that was approved in 1998 has been since changed, and if we do the next slide, we'll probably see that. And here is that change. At the opening of the public hearing, August 14, 1997, the applicant represented to the commission that the maximum 9 farm dwelling units would be constructed on lot 1, which is that bit lot, and that these homes would be exclusively for Moloa`a Hui farmers as a result, condition number 3 of the above permits was imposed and reads as follows...I don't have to read this. It was intended for only farmers of Moloa`a Hui and their families and/or employees. Now this request, and let me read the request. The request, the applicant is requesting to amend the original representation regarding the residential density on...for lot one by increasing the amount of farm dwelling units from 9 to 13 units. The basis of this request is that there was a need for additional house sites on the subject property. Lot one, after consulting potential farmers, buyers, subsequent to the subdivision approval, and lending institution would not approve loans on just raw land, and so they used that as the justification for an additional four more. So the total, which was approved, is now 13. Because it is on one big lot, there is another additional to the 13, and that is the additional unit which could be built on the property, and that is the...in our zoning we have an additional unit that can be built, and that is the 14. COUNCIL MEETING • - 87 - • July 28, 2010 Okay, let me read this. The applicant explored the option of subdividing the property to accommodate additional farm dwelling units; however, it was determined that the subdividing of the property would be contrary to the intent and function of this development as an agricultural park subdivision. Thus, the applicant is seeking the proposed amendment, and the proposed amendment is simply to do... and let me just read it right here, the maximum of 13 farm dwelling units for the property. So this is how the 13 came about, and I don't have to read the rest. So what we have now, today as it stands with the amendment that was made in the year 2000 for this application, if you look at the bottom, we now have the one, two, three; four additional units (oh, the battery is weak on this), and so we have a total now of 13 units. And the 14th unit that I mentioned is the guesthouse, and because this is one lot, one lot entitles you to a guesthouse, and that's where the number 14 came from. Now, I want you to keep in mind the number 14. The number 14, you're going to find at the very end, is a magic number, and it was intentional on the developer to do 14, and I'll give you the reasons why it was 14 and not extending to more than 14. You want to keep on going? I just want to explain that this is the Kilauea area. I made this in the last presentation, and all I'm saying is, in this particular area here you...what we're showing is you have approximately 585 lots here... CPR lots in total, and if this bill passes, the potential addition that you can add to this is going to be... do we have that on? This is the potential addition. This potential addition (wow, this thing is not working anymore)... this potential addition is... there are, of the 585 CPR units, there are 261 of these units that have ag dedication. The two big issues on this proposal is if you have ag dedication, if you have CPR completed, those are the main qualifying point, aside from the income, as an example. So potentially this is what you can look like if this bill goes through. All of these additions can take place, and this is only one unit. You can triple this. That is the possibility, because this bill allows you to do three farm worker housing units per CPR. So that's how big a problem this could be. I'm talking about the potential. Okay, you want to put the next slide? This happens to be in the Waipake area. You can do that...point out that property. I just want to explain. That piece of property there, all of what you see here, is an ag subdivision. So put the... Okay, this property here is approximately 10 acres in size, and you can put 4 units on, and it's simply ag zoned and it's not CPR'd yet. Here's what happens when you CPR it. Go ahead, take the next slide. When you CPR it, first of all the CPR, you notice there's four now, you've divided that into four, and remember, you have one big lot, so that entitles you to a guest cottage, and that's the fifth one on the bottom right hand side, so it's five. Now what this bill does, that's dedicated land, every one of those four lots you can put three more, by this bill. So again, the potential increase is horrendous on what we're trying to do. Okay... And this is the potential that I'm making reference to on what could happen, and this is just adding one unit . on one of the CP.Rs in the four noted there. This slide is just to show you...the blue represents all of the ag lands over there. The red is the urban district. The reason I show you this, I'm going to take this red here, yeah, and I'm going to put this red, which represents the urban area. It's approximately 250 acres. This 250 acres here of urban, I want to show you how big the project is in Moloa`a. Many people don't understand and know how big the Moloa`a project is. Here it is. It's 250 acres. Now the Moloa`a area is 590 acres. So you talking about a huge project. It is not a small project. And you remember my making reference to the red area in Kilauea and the blue that represents that ag? When you look at that, there is nothing to expand. You cannot expand anymore; it's gone. You lost it. Well, you're going to lose this one too, that's what's going to COUNCIL MEETING • - 88 - ~ July 28, 2010 happen, unless if you keep to the design, the use of all ag, then you'll be okay, but I don't believe you're heading in that direction. You are not heading in that direction. Okay, take the next one. Let me explain this slide here. This slide simply shows the dots represent the units that are allowable. The lots that show here in red, outlined in red, these are the lots that have violations. There are 16 lots here that was inspected by the planning department's inspectors, and all of these 16 have violations, many violations, many violations, 16 of them. Of the 16, I think you can see that there are just three of them...one, two, no...back up here that's two, and that's three there. Those are the three units that are allowed to build units; the rest of them, they're not allowed. You can't put any units, because it was designed that way, intended that way. But what people are doing, they're building units anyway, against the ordinance. So what is it? It's violations, period, that they should not have been allowed to do it. The planning department has done inspection, and for your information, the planning department did the entire area. The red that I'm showing you here are only the violations that occurred, only the violations. Let me show you some examples of the violations, and here is one example of a violation. In this particular one... go back again, this violation here, I want to just read this to you. As represented, farm dwelling units are not located on site specified as approved. In other words, on this particular inspection of that parcel, farm dwellings are not allowed. But what are they doing? They're building farm dwellings anyway, against the law, against the law. And if you look at this particular violation on one of the parcels, this one here numbers 16 violations, all kinds of violations. But the problem is that you're not allowed to build a unit, and yet they build a unit anyway, and this has been going on for years. And let me read this here. Item 7, the construction and placement of one Quonset but structure as a dwelling without proper permits constitutes a violation. Let me read 8, the placements of two pipe frame structures with membrane roofing and wood flooring used as a dwelling without proper permits constitutes a violation. And if you noticed dwelling on this particular violation, there are three dwellings violations. So that's the law, but we don't follow the law, and that seems to be okay. The next one. As I mentioned to you; this was the same one, I believe, and that's the 15 violations. This is another violation here, and let me just read this one. As represented, farm dwelling units are not located on site specified as approved. Again, this is one of the parcels that you're not allowed to put a unit on. You just not allowed, but units are being placed anyway. And let me read it anyway. The placement of two steel containers used as dwelling units without proper permits constitutes a violation. The construction and placement of one pipe frame structure and membrane covering used as part of dwelling unit, dining room, living room area without proper permits constitute a violation. Next. And you're hereby ordered to remove any and all illegally established structures within 30 days of violation notice of this date, and it just continues. The violations are there, have been there for years, and the planning department is just not able to continue to try to get the violations handled and taken care of. So I won't read the rest. Okay, let me show you the violations. Now, what you have here, you have a kitchen over here. You got stove, you got ice box, is this a dwelling unit? Of course this is a dwelling unit. But you're not allowed a dwelling unit on the property, but you do it anyway, so it's violations. What are we doing? If you look at these, all of these here, people are living there, and you're not supposed to be living there, because you're not allowed to. If we're not going to be following the law, then forget it. Next picture. This happens to be another violation over here. Next picture. And as you can see, people are just living there against the rules. This is again living, this is the stove, and the ice box, and people just living there with no COUNCIL MEETING • - 89 - • July 28, 2010 permits, first of all, and illegal, and these are just the structures that are there. Keep on going. Keep on going. And these are just what is there today. So... and again, this is, you know, so called kitchen, so the bottom line is people living there, the planning department has done their job, they've done the inspections, they've cited, they're done their work, but evidently it just don't matter, so it's illegal. So what is happening now is that this bill will legalize all this, so it will now be legal. And it's very difficult for me to do that. Now you have... go back... no, keep on going. Now you have buildings like this also that have no building permits, and what is going on out there is almost outrageous. If we defy the laws and say well that don't count, I know you're not supposed to, but it's okay, and that's what we're going to do with this bill. Everything here will be legal. This again is another one, and I wanted to show you... Go ahead, try the next slide. This one here again you notice this is the kitchen here, ice box and... Mr. Furfaro: Mr. Asing, may I just ask for a recess and have a moment with you to share something that you may want to be aware of? Council Chair Asing: Sure, okay. I'm almost done, you know, not too much. Here's a full bath here, adining/living room, you know, living in this -house, and this house is not allowed under the... Now let me just kind of finish up by doing this. That is the...all of the problems on the activity in Moloa`a. Let me just add one more thing. Now this project is currently served only by agricultural water service, which has been supplied for over 20 years by either private wells or from wells operated under the State of Hawaii license, which wells are located in the vicinity of the project. No potable water is currently available to the project, and none is promised. Any part desiring to provide domestic or potable is not going to happen. I want to tell you that you remember the figure that I mentioned, the magic number 14, let me read this section to you here. Definition as used in this chapter. Safe drinking water. Public water system means a system which provides water for human consumption through pipes and other constructed conveyances if the system has at least 15 service connections. The number 14, you remember the number 14, because if it was 15, then your system will now fall under a public water system. You will now be regulated by PUC and the department of health, and the department of health will not clear you with no potable water. So these are just additional types of problems. I'm hoping that somehow this can be worked out, but it is not going to be easy, because the developer, I don't believe, is going to take the responsibility; therefore, you will have a water system that will not comply to the board of health rules and regulations. So you have another problem that will exist in that area. This is just the modified public water systems, and I won't talk about this, because I did just mention you need the department of health approval. I don't think we need to do this. And then the last one was the public utilities, you're going to have to go through the public utilities commission because you're doing water. And I think that's it. Okay, so with that... Let me just finish by saying this... 1998 and 2000 approve. You have a class 4 zoning, you have a subdivision and you have a variance permit. What is approved today? Here's the approval today... thirteen (13) dwellings units, what is happening? Abuse, continuous flagrant CZO building variance permit violations over a ten (10) year period and I showed you that, all of the violations that are there. And then we passed this bill and here's the reward, farm worker housing and what I did was I added the green here is just adding ninety-seven (97) dwelling units. The reason I put ninety-seven (97) dwelling units there is, forty-two (42) of these sixty-one (61) units qualify for the main two (2) areas, CPR yes that's clear COUNCIL MEETING - 90 - ~ July 28, 2010 you got that, forty-two (42) of them... you have forty-two (42) that are cleared for Ag dedication, so there's forty-two (42) units that qualify so hence if you put two (2) units of each of the forty-two (42) that is what you look like over there so the reward is you get ninety-seven (97) dwelling units. Now I know that I sound harsh and but this is what I see and what I found and I don't think it's right, I would .not want to reward anyone for breaking the law. Now because of that I'm saying well so what Councilmember Asing, what is your solution? My solution is, there is a use permit process today that's in the ordinance it's in the ordinance. Under the ordinance on section 8-7.3 uses and structures that require use permit, you have under item five (5) construction and worker temporary housing, it's there... use it. That's why it was put in. So there is a solution and as far as I'm concern,. the solution was always there it's just that nobody has ever used it and those are the concerns that I have and my reasons for not supporting this. It's very, very difficult for me to support. Ten (10) years of this abuse. And I showed you the pictures, the Planning Department has done their job, the inspectors did the entire area, the sixteen (16) that I showed you were sixteen (16) that committed violations, that's all. The rest, there was no violations, only the sixteen (16) but I just have difficulty, almost like rewarding people for all of these violations over the ten (10) years and people who bought new in the very beginning that your unit that you bought, you were not allowed a unit because it was intended to be that way. It was intended for you to be outside coming in and just farm, not live there. It was not designed for that purpose, only fourteen (14) units was supposed to be inhabited, the rest was not designed for that purpose. So you still going to have to clear this area too, so with that thank you very much. Mr. Furfaro: Did you? There being no objections, the rules were suspended. Ms. Yukimura: Ah yes Mr. Chair could we... I really appreciate what Chair Asing has said but I think for a full public policy discussion, we would like to have a full... because there was not... not all that was said was accurate, it needs to be cleared for the record. Mr. Furfaro: Yeah I do want to say something and I ask for a recess... you can come up to the stand JoAnn but I do want to make note and just share with the Chairman and in my concern obviously when we referencing the violations, you know they are violations that perhaps should be expanded on... is if they actually found the violation to be a violation, is it in the process. Do we have a situation here that, I do believe we have a future item on the agenda which is visiting Moloa`a again and perhaps we can expand on that, that was a communication to the County Attorney and the Planning Department about the issues that... I don't know quite how to say it other than there is a violation issued but it still has to be determined, it looked pretty bad in the photos there but I also saw our staff members there, I'm not sure what kind of exposure that gives us as well. But I'm going to suspend the rules JoAnn... Ms. Yukimura: Thank you. Mr. Furfaro: I'm going to give you the floor. There being no objections, the rules were suspended. COUNCIL MEETING ~ - 91 - • July 28, 2010 Ms. Yukimura: Thank you and if there are a couple others who know better the situation than I do and if they'd be allowed to speak too. But I just wanted to say, I actually very much am concerned about what Chair Asing has brought up in terms of the Kilauea area where people have Ag dedications and I do... Chair Asing: Two hundred and sixty-one (261) of those units... Ms. Yukimura: Thank you. Chair Asing: On that map qualify for the... Ms. Yukimura: Right. Chair Asing: Two (2) main areas... Mr: Furfaro: Mr. Chair... Ms. Yukimura: Yes. Mr. Furfaro: Let's let her finish first. Chair Asing: Okay. Ms. Yukimura: Yes. Mr. Furfaro: Statement please. Ms. Yukimura: And the Real Property Tax people themselves have said that Ag dedication alone does not, is not good enough to distinguish between real farmers and fake farmers, so we... that makes me say that we really have to make sure our protections are rigorous. But as to the point about there being some illegal farm dwellings, the whole purpose of this bill is to legitimize a need that farmers have in order to farm. I mean one thing that is clear about Moloa`a is that there is a lot of farming going on, that people are actually producing food for our community and in some... in a few of those shots showed incredible fields of vegetables and fruit trees and nobody that I know of, the people who are very concerned that this bill may not be strong enough, like my friend and classmate Roy Yamakawa and some others... one thing they all agreed with me on and everybody so far that I've talked to agrees on is that farmers need to live on their land. I have not heard anybody say that. I used to support when I very started... when I was twenty-six (26) years old, first elected, I said let's have the German style of farming where you live in the farms and you walk out to your field so no... and I since came around because everything that I know from farmers who are really farming, says they need to be on the land so... Moloa`a has created great hardship too for the farmers who are farming and as long as we can tie it to real farming, we should be okay. But that is the question. Are we tying is so securely to real farming, is the Planning Department capable of enforcing. And the reason why that temporary and construction housing doesn't work is because there's no clear standards by which to issue that permit. And this bill is trying to develop some clear standards, otherwise it's like based on who's applying and it's all over the place and too much discretion. The existing law needs some hard criteria which we have labored over and I think that's what makes this bill better than the existing. But Chair Asing if you have these concerns then propose more... more protections or more criteria like in our Real Property Tax we said have at least seventy percent (70%) of the land area be used for farming and I know that green houses may be a problem but we haven't really looked at that, we need to look at that. So I mean... COUNCIL MEETING - 92 - ~ July 28, 2010 make this bill better and stronger if you will but don't go back to the status quo because it is not sufficient, it will create huge abuse and it's not what any of us want either you or I or anyone else. But thank you for your concerns because we need to hear them and listen to them but I don't agree with the fact that that you can realistically expect farmers to farm without having somebody living there, at least that... I bet the farming community would tell me otherwise if that's the case or show how it is. Mr. Furfaro: Thank you. Let me see if I have any questions, Mr. Bynum did you have a question directed towards... Mr. Bynum: Well no, no. Mr. Furfaro: No you did not. Thank you. I'm going to let people from the audience come up, please come right up. Ms. Newman: My name is Linda Newman and I never seen a more distorted picture of the process of Moloa`a in the many, many hours that the farmers have met to discuss this very situation. I have never seen a better presentation for the fact that this bill must pass. The farmers deserve the right and as I see all the dots, I know every lot in Moloa`a, I know who's farming, I know who's not farming, I know where houses were put, I know where bluff houses are being put but I am going to say that there is food production and the purpose of farm dwellings is to allow people to live on their farms and produce food. I never... thank you for that presentation but will tell you, your presentation is a bit wrong... and maybe you would like to sit down with the farmers of Moloa`a and get the play by play of how the, how it enfolded and as you start talking numbers and dwellings, see where the dwellings are, seeing where the CPR... I am sorry that it has been allowed, I am sorry that people have been allowed to CPR their units, that is really a sad thing but don't look at the farmers and say they have violations when the violation will be the very people who allowed it to be reCPRed into all of those units, into two (2) acre units. So I would say sit down with the farmers and discuss with them so that you have the exact system of how this work because we've all been through it over and over and over and agonizing over how this situation has occurred but again I think it's an excellent point to pass this bill because that is what farm worker housing is all about, people should not have to live like that. We are human beings and we have the right to have good housing and sanitation. And that's what I have to say, thank you. Mr. Furfaro: Thank you. Is there any questions? Chair Asing: Are you going to pass the Chair back to me? Mr. Furfaro: You can have the floor, go right ahead. Chair Asing: No... are you going to pass the Chair back to me? Mr. Furfaro: I think I am after I get a little... Chair Asing: Okay. Mr. Furfaro: Opinion Mr. Chairman... Chair Asing: Sure. COUNCIL MEETING • - 93 - • July 28, 2010 Mr. Furfaro: I'm kind of, I'm kind of concerned that we're going to pursue Moloa`a as a separate item that was there. We have no more of your time, Anne you can come up Anne. Ms. Punohu: Aloha Anne Punohu representing the Kauai Fair Housing Coalition. Uncle, I get what you're saying, totally. However I want to state my position as trying to represent the housing situation and especially for virtually to put it bluntly and no other way in term, homeless people with nowhere to live in substandard housing on this land, it is an issue it's a safety issue, it's a social issue, it's a food safety issue so what I'm trying to explain to some other... some of my friends over here but they don't quite get what I'm saying... is that under the Federal law and I will say it again you cannot make a law that prevents farm worker housing from occurring if somebody has a farm worker on their property as the employee, they are mandated by law to provide safe, adequate and housing and if there is a law that prevents it from occurring but they need the employee to produce the produce and they are the employer and you have prevented them from being able to do that thus forcing them to violate a Federal law, that in my opinion makes the county or the state or whoever made the law duplicitous in that event. The reason why we have this issue right now of them needing to have the farm workers on the property is because there is no outside housing for farm workers at this time. What JoAnn was talking about having the... Chairman (inaudible) or whatever it was is that here's the farms and you should be able to travel to your farms and there should be no dwellings on the farms, you should just be able to go to the farm and do your farming. However our situation on Kauai and our housing crunch is so bad that that cannot occur anymore because you don't have the housing for the farm workers, therefore, they needed the workers, they put the workers on the property and they're living in these substandard conditions and you can see those structures and I agree. Those constructs are wrong. They should not exist and nobody should be living in them. They are violations; however, if you take this bill as a good thing, if you follow OSHA law, those dwellings will have to be built to standard and they would, they cannot be occupied until they have a OSHA sticker on them and they would have to follow some very strict standards as far as farm housing on the State and Federal side. Or they would be in violation and according to the bill, you couldn't have... you couldn't occupy the housing. It behooves everybody to get these people into good housing so that the occupational farming could continue. And I know... Mr. Furfaro: Excuse me Anne. I'm going to stop you here a second... Ms. Punohu: Okay- sure. Mr. Furfaro: I'm going to ask the clerk's office, is somebody there timing the public speaking there? Good, thank you... Mr. Bynum: Three (3) minutes. Ms. Punohu: I talk fast. Mr. Furfaro: Go ahead, I'll ask you to summarize. Ms. Punohu: I just want to summarize by saying that let's remember what the core purpose of this bill is. The core purpose is to prevent what you showed so magnificence Uncle, is to prevent those kinds of dwellings from being there and to put decent housing (inaudible) workers which we would've had if we had decent housing on this island but we don't and so there you go, aloha. COUNCIL MEETING. - 94 - • July 28, 2010 Mr. Furfaro: Chair Asing: Thank you Anne. Jay? Mr. Furfaro: Yes. Oh we still have someone? Come right up. And Roy, you want to speak after that? SUE LIDDLE: For the record, I'm Sue Liddle. I live in Kapa`a but I have property over in Moloa`a. I'm not quite sure where to start here. Your... much of your presentation Mr. Asing is correct, also some is not. One of the things that hasn't been addressed and you touched on was the water issue and it's non- potable water. Why then are there thirteen (13) houses allowed to be on there and have non-potable water? Chair Asing: You want me to answer that? Ms. Liddle: Why was... Mr. Furfaro: Excuse me, let me have Mr. Asing answer your question? Ms. Liddle: Okay I have a continuation of that... Mr. Furfaro: That's fine. Ms. Liddle: Part of Hui three (3) that is... Chair Asing: Let me answer that... Mr. Furfaro: I want him to answer the first question. Ms. Liddle: Well this is a continuation of that... Mr. Furfaro: Oh okay then I'll let him answer when you finish your piece. Go ahead. Ms. Liddle: Thank you. Moloa`a Hui three (3) was subdivided, I still can't get any answers as to how that was allowed to be subdivided, that is also on non-potable water, that's an actual subdivision with houses, twenty-six (26) houses that are there now... how did that happen on non-potable water? Chair Asing: Let me just answer the question by saying this... as I stated earlier if the number of connections... you read the rule, I put the rule up right? The number of connections are fourteen (14) or less, you do not fall under the Board of Health, so the Board of Health has nothing to do with it. There are two (2) criteria that you need to follow, one is if you have fifteen (15) connections, you are automatically a public water system, you will now fall under the Board of Health rules and you would have to abide by those rules, okay? You are not at the present time, that's one criteria... the number fourteen (14) because if you get to fifteen (15) you fall under the Board of Health rules and you fall under PUC. Now two (2) if you have more than twenty-five (25) people living there then you also fall under the Board of Health rules. So there's two (2) criteria, one (1) is the magic number fifteen (15) when you hit fifteen (15) you will fall under the Board of Health rules or if you have more than twenty-five (25) people living on the property, you'll fall under the Board of Health. Because you do not have the number fifteen (15), you have fourteen (14), you're not under the... COUNCIL MEETING Ms: Liddle: Chair Asing: I want to clear it to you. Ms. Liddle: Chair Asing: Ms. Liddle: - 95 - ~ July 28, 2010 Fourteen (14) houses but more people. Yeah that's the reason. So you asked the question, And then how about the triangle of Hui three (3)? I'm not familiar with that. That's where the triangle on the road... Chair Asing: No that's... I didn't do anything in that area, I was concerned about the portion that has the building... here's all I'm pointing out, all I'm pointing out is simply this... this entire project here falls under a class four (4) zoning permit, a subdivision permit and a variance permit that was issued in 1998 was the nine (9) units for this and again amended in 2000 for the additional four (4), that's all I'm making reference to. You have a permit to operate this subdivision and that's all I'm talking about, nothing else. You are constrained to operate within the rules as approved by the class four (4) zoning of 98 and 2000, the subdivision of 98 and 2000 and the variance permit which was approved on 1998 and amended 2000 and that's all I'm making reference to. That's all you can do. By these... the subdivision variance and class four (4) zoning, you cannot do anything else. That's the law, that was what was agreed to and passed by the Planning Commission. And that's all I'm making reference to, I'm just saying with the project. Mr. Furfaro: Okay Mr. Asing on that note... Chair Asing: Thank you. Mr. Furfaro: We're required to take a caption break. Chair Asing: Okay. Mr. Furfaro: Okay and we can come back and Mr. Oyama, I know you want to speak next but he's answered that part of the question... Ms. Liddle: Thank you. Mr. Furfaro: And I think this is a good place for us to take a caption break... Chair Asing: Thank you. Mr. Furfaro: We'll take a ten (10) minute caption break. There being no objections, the Council recessed at 9:13 p.m. The Council reconvened at 9:27 p.m., and proceeded as follows: Mr. Furfaro: I think where we left off, Mr. Oyama you wanted to speak and I'll go ahead and give you your time. Mr. Oyama: I got to thank the Chair for presenting his side of what this issue is... Oh I'm sorry Roy Oyama, Kauai Farm Bureau. I just want to thank the Chair for presenting his side of the view and I think it's time for a rebuttal of what is agriculture. Numbers that he has described, I mean I'm not trying to make this issue that we are against it, I'm trying to make sure that, this is COUNCIL MEETING - 96 - ~ 'July 28, 2010 a good step for the agricultural sector and as you know this was mostly presented for Kilauea and Moloa`a on the CPR issue, mostly. The CPR areas where he has also stated from the numbers in blowing up the unit to ninety-seven (97) that's a qualifying area of each unit that they can qualify for three (3) if they have thirty- five thousand ($35,000) three (3) times and all the other requirements. And you got to understand if this happens, what would the agricultural result be only in Moloa`a? I wish you would try to figure it out. I know some people have and I will not say the figure because I think you people need to, maybe say so that the public understands that. But I know it's a heck of an amount of production. If we have that only in Moloa`a and we can do it elsewhere with all of this CPR, it's going to be a big, big fruit basket for the island of Kauai. And also to it is not in the area where we want this because we are desperate, it is for the safety of the farmer and his fellow employees. And also another area was very much stipulated in this rule is the person who's going to be in the house is rent free, there is no charge for rent, so how in the world can the farmer makes three (3) units if he's just trying to do a TVR, or a rental unit, he cannot. So I just wanted to make sure everyone understands it clearly, the blown up of the figures was not in the right proportion on agricultural itself, we work hard. I think we deserve better than what we've been talked about. I myself work hard so I want to make sure that everyone who works that hard is respected, because they feel proud of their hard work. It's not easy, I hope you would also try that work and tell me how long you last for the day. This is a long day for me, I started very early this morning, it is 9:30 already and I'm going to get up tomorrow morning at four (4), now you tell me... my little pet dogs are going to be screaming at me:.. okay. Mr. Nakamura: Three (3) minutes Mr. Chair. Mr. Oyama: The farmers work hard, they deserve what they deserve and I hope you guys will take care of this tonight. We cannot have this kind of areas of presentation making us the bad guys, we are not the bad guys. The reason of violation, if you were to be in their shoe, without a density. And they're desperate to farm and they do farm... they cannot live outside of the land, you heard that story. And many years I said that, many years... from the beginning. We got to be on the land but nobody listened, that's why please as government... listen. I listened to whatever my members tell me and we try to help them, so we try to pass the information on and be sure that this words are out. Now I don't know how else because I was not prepared for this situation, the way it came on... it really baffled me, it really made me disappointed, it was like saying... I am a bad guys, we all farmers violate and I tell you what... this violation was because there was no area of help. How many years you saying you going check that... nobody wanted to help and yes I know because I have brought some over to the Planning Department also and all I -hear is violation, violation... well we need help, that's why we're coming... that's why we have come to them. And also I think the Council needs to understand, we need help... if you want food on your table to go on... please help us... that's all I have to say. Mr. Furfaro: Thank you and your three (3) minutes did expire but I let you finish. I guess on that note... Mr.... I'm going to call the meeting back to order. There being no one else to speak on this matter, the meeting was called back to order, and proceeded as follows: Mr. Furfaro: Mr. Bynum, I'll let you speak because you had your hand up when there was some testimony but I also want to know, I want to see if I can turn the meeting back over to Mr. Asing so... let me let you speak first. COUNCIL MEETING. - 97 - • July 28, 2010 Mr. Bynum: I don't see the word Moloa`a in this bill anywhere. This isn't the Moloa`a farm bill, I think it impacts Waimea Valley, Waipake, Wailua, Kapahi all of these other places too. I think the whole presentation we saw had only a very tenuous connection to this bill at best. I know that I personally would never be allowed that kind of latitude here on this Council. I don't think the whole presentation about zoning... I don't see any of that in this bill. So I think it was inappropriate to have this lengthy of a presentation but seeing as we did, I think it's a separate issue and I don't think let's see how it has to do with this bill but what I do know and I don't know all the details here but clearly things went wrong there that had nothing to do with the people who are currently on the land. Also I know that even if you don't .have density if you're farming, you should be able to have a storage shed or a barn or a green house and that people went like Mr. Oyama said, hey I want to be legal, I want to put up this storage shed and they said oh but the guy over there fifteen (15) lots away has a violation so we can't do it... so this whole CPR thing is a mess like a lot of things are and we haven't addressed it in all of these years and I don't... till this day understand how this guy here owns his property, has separate owners and because his neighbor did something wrong, he's held up forever. And so there's lots of issues we have to address but I'd like to bring it back to this bill. And this is the appropriate time, I'd like to comment on the bill. Mr. Furfaro: Well I was hoping to have a session with the County Attorney on the Moloa`a bill... Mr. Bynum: What Moloa`a bill? Mr. Furfaro: The Moloa`a bill that was received and killed. And I'm prepared to put that as a separate item... Mr. Bynum: In a future. Mr. Furfaro: Yes... in the Planning Department. What I want to make sure is what was presented today and so forth with personnel doing inspections and so forth, that the County Attorney is well aware of it in case it gave us any exposure but I do plan to put that that Moloa`a item that was received back on the agenda. Mr. Bynum: So if I... Mr. Furfaro: Would you give me that leeway to... Mr. Bynum: Sure. Mr. Furfaro: Speak to the County Attorney? Mr. Bynum: Right now? Mr. Furfaro: Yes. Mr. Bynum: Sure. Mr. Furfaro: I'm going to ask to suspend the rules may I have someone from the County Attorney's Office please? There being no objections, the rules were suspended. Mr. Jung: Good evening Council Chair and Councilmembers. Deputy County Attorney Ian Jung. COUNCIL MEETING ~ - 98 - ~ July 28, 2010 Mr. Furfaro: Thank you. I think you heard Mr. Bynum's comments about the attachment of this and so forth being more specific to Moloa`a. I just wanted to ask... do we have any exposure or is everything copacetic as we presented tax key numbers, photos of our staff and so forth on issues that evidently issued violations for Moloa`a, are we all... Mr. Jung: We do need to look into... we do need to get a copy of the PowerPoint and look at what photos were submitted and what was part of the investigative files and we will address that, we will take a look at it. Mr. Furfaro: And my assumption is those photographs probably may have been provided by the Planning Department so I'm trying to find a way to put a new item on the agenda in my Committee, so that we can revisit specifically Moloa`a and the kind of issues that pertain there as I think Mr. Bynum mentioned it's not connected to Kalaheo, other farming areas that are looking towards this bill but it should not necessarily exclude them until we get a firm understanding of what needs to be done in Moloa`a with the Planning Department. Would you have a problem if I put that on a Planning Committee agenda? Mr. Jung: We would have to see how it would be framed and put on the agenda but we'll work with you on that. Mr. Furfaro: So that is my, I just want to disclose that is being my intent. Because the previous item was put on the agenda and moved to receive so it has to be a new item. Along that line... are there any guidelines that kind of convey to us about violations being issued versus violations being a matter of fact... is everybody not guilty of a violation until we prove a violation actually exist? Mr. Jung: I'd rather not comment on any potential violations right now as relates to Moloa`a Hui since they're investigative files that are ongoing over there. Mr. Furfaro: I can appreciate that but that is my intent... ask the Chair to put it back on in the Planning Committee. Mr. Jung: Okay. Mr. Furfaro: Is there any questions of the County Attorney here? If not, thank you very much. I'll call the meeting back to order. The Council meeting was called back to order, and proceeded as follows: Mr. Furfaro: And on this next point, I am going to ask is there any motions to turn this meeting back over to Mr. Asing to complete the meeting? Mr. Kawakami: So move. Mr. Chang: Second. Mr. Furfaro: Thank you. There is a motion and a second to turn this meeting to the Chairman Asing, may I say all those in favor say aye. Councilmembers: Aye. Mr. Kawakami moved to return the Chairmanship back to Mr. Asing, seconded by Mr. Chang, and unanimously carried. COUNCIL MEETING • - 99 - • July 28, 2010 Mr. Furfaro: Mr. Asing. Chair Asing: Thank you. With that Councilmember Bynum. Mr. Bynum: So back to the bill... the ninety-seven (97) dwellings here would be if there was a maximum potential but just to remind people, you know when I started with this bill... everybody worked really hard on this and some really positive things have come out of that work, that have potential for this bill and for future discussions about the theme of the day, stewardship for agricultural lands, the... and in this instance when the bill first came the Planning Department was involved and made a lot of recommendations and I think all of their recommendations and more contained in this bill. There were concerns about whether it would be abused that developers would use it as a way to escalate land values and get density on housing that didn't exist. I shared those concerns and there was a point where I didn't think I could vote .on this bill because it seemed to be getting too loose and allowing for that. But the community stayed in there, the Planning Department did, the Planning Chair and other Councilmembers, and we came up with a bill that for some time now, I can support. Because I think it almost... it makes that abuse unlikely but because-we're talking about business people who are trying to grow food and we're saying to them, hey if you've been doing it for a couple of years already and you already have dedication and you can demonstrate thirty-five thousand dollars ($35,000.00) of gross sales for two (2) years in a row, then we'll let you build this house no bigger than (x) and built in a certain way... but you have to be producing this foods. So if we can build to the ninety- seven (97) potential, I did the math and they were doing the minimum thirty-five thousand dollars ($35,000.00) that would be three point three, five nine... three million three hundred and ninety-five thousand dollars ($3,395,000.00) of agricultural production from just Moloa`a. If we did the two hundred and sixty-one (261) units that Mr. Asing talked about, minimum now... would be nine million one hundred thirty-five thousand dollars ($9,135,000.00) worth of agricultural production. I think that would be a pretty good thing and but we're very concerned that these business people... well if you do all of these things, we'll let you have this twelve hundred (1,200) square feet maximum dwelling. Now we .have other business people on Kauai. We have business people on Kauai that are subdividing agricultural land to build huge houses and we've seen examples of those here today. Where there's no intention to do agriculture at all, where we have no criteria about minimum agricultural production but we're not concerned about those business folks, in fact there's been... in 2008 as I mentioned earlier, the Mayor at that time asked us to curb that practice and since then there's been four hundred (400) new lots like that created and what will be the agriculture dollars from those lots? Probably little or none. So boy we got to get our act together and set our priorities straight. ~I want to support that hard working farmers who have to show a maximum production. This bill is very tight, it's not going to... there's a lot of people who initially thought this bill would benefit them who know it's not. I think it's probably too tight but there is some very significant people, some of which who are in the room tonight and many others, who aren't that may benefit from this, that will have their worked honored and valued and so I hope we do pass-this bill tonight and I hope that the lessons we've learned from all of this focus on agriculture over the last few months, and I have to thank all of you here.:. how much I learned from you. I mentioned earlier that I've been reading Mr. Oyama's testimony back fifteen (15) years and I've learned a lot of him in person and I've learned a lot from his testimony and his ongoing advocacy for Ag and for farmers and we have a lot of work yet to do to fulfill the desires that Mr. Oyama and others share and to do what was our marching orders from the General Plan. So I'm going to be very proud to support this bill, in its current state tonight. COUNCIL MEETING ~ - 100 - ~ July 28, 2010 Chair Asing: Thank you. I want to make one correction to your statement. You stated that the ninety-seven (97) that I have there is the maximum... it is not the maximum. If I put the maximum up there, it's a hundred and twenty-six. (126), the ninety-seven (97) represents two (2) units, two (2) times the forty-two (42) that is available there, that brings you to eighty-four (84), add eighty-four (84) to the thirteen (13) allowable units, that's where the ninety-seven (97) came from so I just want to correct you... so again misinterpret things that I say or have presented... Mr. Bynum: Thank you very much. Chair Asing: The ninety-seven (97) is two (2) units and not the maximum of three (3). So that's all I wanted to clear. Mr. Bynum: And if I may... Chair Asing: Sure. Mr. Bynum: Build on that. So if you went to the maximum of three (3) the first one could be twelve hundred (1,200) square feet, the next one (1) would be... three hundred (300) each... three hundred (300) square feet... so for a total of eighteen hundred (1,800) square feet. If we went to the maximum density we could get four million four hundred and ten thousand dollars ($4,410,000.00) worth of agricultural production, so I appreciate the correction but you know... my point is very restrictive for these business people who are actually producing food for us versus wide open fair game for business people that are producing high level homes for people who don't even live here. Chair Asing: , Thank you. Any further discussion? Councilmember Kawahara. Ms. Kawahara: Quarter to ten,. I want to thank you all for being here and it's going to be very short... grow a lot of food and thank you for hanging in there. It's a little small step that the government can take for you, grow a lot of food. Chair Asing: Any further discussion? Mr. Furfaro: Mr. Chair before we take a vote here, I just wanted to reconfirm that you understand my intent is to look at Moloa`a separately... Chair Asing: And I agree totally. Mr. Furfaro: Okay and I'll put something in writing to evaluate the violations, the Planning Commission, the inspections, all of those things as a separate item within the guidelines of the County Attorney but I do think that you know the real bona fide farmers deserve some acknowledgement about tonight and about how we go forward so. Chair Asing: Sure. Mr. Furfaro: Thank you. Chair Asing: ~ Thank you. Any further discussion? Yes go ahead. COUNCIL MEETING • - 101 - • July 28, 2010 Mr. Chang: It is... it has been a long day and I know many of you have been here from this morning so... I think it was Louisa that mentioned, unfortunate that most of the people had to leave, we know that they're working so... please convey to them... thank you all very, very much. I guess as part time hobbyist as far as farming is concerned I understand how difficult it is as Mr. Oyama said to grow because you know you got all these seedlings that you buy with the mix lettuce or the (inaudible) and the you know the different beets and everything else, they don't last unless I mean you can water them in the morning, water them at night but in the heat of the day unless you got a screen or a mini hot house, they all wilt and they wilt till they're died. So I know how difficult... I mean just wilt straight into the ground like they're gone... like disintegrate I guess is the word. And I'm about to disintegrate right now to be honest with you, it's been a long day but anyways please convey to everyone of their patience and their time and I think tonight will be a glorious evening that everybody will sleep well so thank you all very much. Thank you very much Chair. Chair Asing: Thank you. Any further discussion? If not, I'd like to say again on this item and I'm going to read it into the record... I want my colleagues on the Council, the County Attorneys, the Administration and the public to know that I respect each and everyone for their research, analysis, views and final opinion. This happens to be my opinion and I respect you for your opinion and all of my colleagues here and everyone. So on that note, roll call please. The motion for adoption of Bill No. 2318, Draft 3, as amended herein was then put, and carried by the following vote: FOR ADOPTION: Bynum, Chang, Furfaro, Kawahara, Kawakami Asing None Kaneshiro TOTAL - 5, TOTAL - 1, TOTAL - 0 TOTAL - 1. AGAINST ADOPTION: EXCUSED & NOT VOTING: RECUSED & NOT VOTING: Mr. Nakamura Five (5) ayes, one (1) no. Chair Asing: Thank you. Councilmembers, let's get Al up so we can finish up. There being no objections, the rules were suspended. Mr. Castillo: Council Chair. Chair Asing: County Attorney. Mr. Castillo: Councilmembers, going on the Executive Session list regarding ES-455 and I'm going down the page. EXECUTIVE SESSION: ES-455 Pursuant to Haw. Rev. Stat. sections 92-1 and 92-5(a)(4), and Kauai County Charter section .3.07(E), the purpose of this executive session is to provide Council with a briefing on legal ramifications of Integrated Assessment System (IAS) system fixes to Permanent Home Use (PHU) calculations 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. COUNCIL MEETING ~ - 102 - ~ July 28, 2010 ES-456 Pursuant to Haw. Rev. Stat. §§92-4 and 92-5(a)(4) and (8), and Kauai County Charter section 3.07(E), the Office of the County Attorney requests an executive session with the Council to consult with legal counsel for the purposes of deliberating, deciding, and authorizing a proposed settlement in the case of Jane Doe v. County of Kauai, EEOC Charge No. 37-B-2009-00620 and FEPA NO. K- 15516, 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 related to this agenda item. ES-457 Pursuant to Haw. Rev. Stat. §§92-4 and 92-5(a)(4), (6) and (8), and Kauai County Charter section 3.07(E), the purpose of this executive session is to provide the Council a briefing, update and to request authority for a possible settlement proposal on County of Kauai vs. Lady Ann Cruises, Inc., et al., Civ. No. 09-1-0165 (Fifth Circuit Court), 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 related to this agenda item. ES-458 Pursuant to Haw. Rev. Stat. §§92-4 and 92-5(a)(4) and (8), and Kauai County Charter section 3.07(E), the Office of the County Attorney requests an executive session with the Council to consult with legal counsel for the purposes of deliberating, deciding, and authorizing a proposed settlement in the case of Kristan C. Hirakawa v. County of Kauai, Civ. No. CV09-00247 JMS/LEK (U.S. District Court, District of Hawaii) 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. ES-459 Pursuant to Haw. Rev. Stat. sections 92-4 and 92-5(a)(4), and Kauai County Charter section 3.07(E), the purpose of this executive session is for briefing and consultation with legal counsel and authority to act regarding proposed offer of Agreement for Kealia Kealanani: Makee & Kumukumu Subdivision 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. The meeting was called back to order, and proceeded as follows: Mr. Furfaro moved to convene in Executive Session at 9:54 p.m., as recommended by County Attorney, seconded by Mr. Chang, and unanimously carried. There being no objections, the meeting was in recess. ADJOURNMENT. The meeting was called back to order at 12:17 a.m., and there being no further business, the meeting was adjourned. Respectfully submitted, ~, PETER A. NAKAMURA County Clerk /wa/ds • • (July 28, 2010) FLOOR AMENDMENT Bill No. 2374, Relating to Solid Waste -Host Community Benefit (CAC Process) INTRODUCED BY: Jay Furfaro Amend Bill No. 2374, to read as follows: "SECTION 1. Pursuant to Sec. 19.10A and 19.07B of the Charter of the County of Kauai, as amended, Ordinance No. B-2010-705, as amended, relating to the Operating Budget of the County of Kauai, State of Hawaii, for the fiscal year July 1, 2010 through June 30, 2011, be hereby amended as follows: The sum- of $95,000.00 by revising the surplus and appropriations estimated in the General Fund, be and is hereby appropriated for the following purposes: Solid Waste -Host Community Benefit (CAC Process) ((Conducting a] (Expand current survey, facilitating services for the Citizen's Advisory Committee meetings, and producing a report.) $95,000.00 (not to exceed)" (Material to be deleted is bracketed. New material is underscored:) V:\CS OFFICE FILES\AMENDMENTS\2010 Amendments\FA--JF_Bill 2374 for 7-28-2010 cncl mtg (si).doc ATTACHMENT No. 1 • (July 28, 2010) FLOOR AMENDMENT Bill No. 2364, Draft 1, Relating to Transient Vacation Rentals INTRODUCED BY: Daryl W. Kaneshiro Amend Bill No. 2364, Draft 1, by amending Section 4 to read as follows: SECTION 4. Section 8-17.10 of the Kauai County Code 1987, as amended, is hereby amended to read as follows: "Section 8-17.10 Nonconforming Use Certificates for Single-Family Vacation Rentals. (a) The purpose of this section is to provide a process to identify and register those single-family transient vacation rentals as nonconforming uses which have been in lawful use prior to the effective date of this ordinance and to allow them to continue subject to obtaining a nonconforming use certificate as provided by this section. (b) The owner, operator or proprietor of any single-family transient vacation rental which operated outside of a Visitor Destination Area prior to March 7, 2008 shall obtain a nonconforming use certificate for single family vacation rentals. (c) No nonconforming use certificate shall be issued by the Planning 1~;rPcto~unles the-us~as a single-family rental is a legal use under the Comprehensive Zoning Ordinance, and the applicant provides a sworn affidavit and demonstrates to the satisfaction of the Planning Director that a dwelling unit was being used as a vacation rental on an ongoing basis prior to March 7, 2008. The Planning Director, in making the decision, shall take into consideration, among other things, the following guidelines (1) The applicant had a State of Hawaii General excise tax license and transient accommodations tax license for the purpose of the lawful operation of single-family transient vacation rentals for a period long enough to demonstrate actual payment of taxes. (2) That prior to the effective date of this ordinance, applicant had deposits for reservations by transient guests in exchange for compensation for use of subject property as a vacation rental. (3) That applicant had transient guests occupy subject property in exchange for compensation prior to the effective date of this ordinance, with a pattern of consistency that evidences an ongoing and lawful enterprise. (d) Applications for nonconforming use certificates for single-family transient vacation rentals located on land designated "Agricultural" pursuant to Chapter 205 of the Hawaii Revised Statutes shall be made within sixty (60) days of the effective date of this ordinance. If an operator as ATTACHMENT No. 2 • • defined under Section 8=17.10(c) fails to apply for a nonconforming use certificate within sixty (60) days of the effective date of this ordinance, then the Planning Director shall assess an administrative late application processing fee of Fifteen Hundred ($1,500.00) Dollars at filing. A nonconforming use certificate 'may be issued for asingle-family transient vacation rental located on land in the State of Hawaii's land use agricultural district if: (1) It was built prior to June 4, 1976, or (2) The Applicant has obtained a special permit under Hawaii Revised Statutes, Section 205-6 which specifically permits a vacation rental on the subject property. (A) An application for a special permit shall include verification by the Applicant that the farm dwelling unit was being used as a vacation rental on an ongoing basis in accordance with Section 8-17.10(c). (B) An application fora special permit pursuant to Hawaii Revised Statutes Section 205-6 and Chapter 13 of the Rules of Practice and Procedures of the Planning Commission that is deemed complete by the Planning Director must be filed within one (1) year of the effective date of this ordinance. Upon completion of the application, the Planning Director shall issue a provisional certificate that will allow the transient vacation rental to operate. The provisional certificate shall be null and void after the Planning Commission or the Land Use Commission makes a decision upon the application. (C) In addition to the Special Permit standards set forth in Hawaii Revised Statues Section 205-6 and Chapter 13 of the Rules of Practice and Procedure of the Planning Commission, the Planning Commission may only grant a special permit if, prior to March 7, 2008: (1) the property upon which the transient vacation rental is located had a registered agricultural dedication pursuant to the guidelines set forth in .the County of Kaua`i's Department of Finance Real Property Tax Division Agricultural Dedication Program Rules; (2) a bona fide agricultural operation existed [prior to March 7, 2008], as shown by State General Excise Tax Forms [and] and/or Federal Income Tax Form 1040 Schedule F filings; or [(2)]~ the Planning Commission finds that the size, shape, topography, location or surroundings of the [lot] property or other circumstances, did not allow an applicant to qualify for an agricultural dedication pursuant to the County of Kaua`i's Department of Finance Real Property Tax Division Agricultural Dedication Program Rules or inhibited intensive agricultural activities [prior to March 7, 2008] . 2 ATTACHMENT No. 2 • • (D) If the application for the special permit is granted, then the transient vacation rental operation shall be subject to conditions imposed by the Planning Commission or the Land Use Commission. (E) If the application for special permit is denied, then the nonconforming use certificate shall not be issued and the transient vacation rental must cease operation. (e) The owner, operator, or proprietor shall have the burden of proof in establishing that the use is properly nonconforming based on the following documentation which shall be provided to the Planning Director as evidence of a nonconforming use: records of occupancy and tax documents, including all relevant State of Hawaii general excise tax filings, all relevant transient accommodations tax filings, federal and/or State of Hawaii income tax returns for the relevant time period, reservation lists, and receipts showing payment. Other reliable information may also be provided. Based on the evidence submitted, the Planning Director shall determine whether to issue a nonconforming use certificate for the single-family transient vacation rental. (fj The Planning Director shall make available to the public at the Planning Department counter and on the County of Kauai website a list of all completed applications for non-conforming use certificates. Applications deemed completed shall concurrently be made available to the public. Copies of applications shall also be made available to the public as public information, as provided by Haw. Rev. Stat. Chapter 92F (the Uniform Information Practices Act). Such list shall include the names of the applicants and the tax map key number of the parcels which are the subject of the applications. The Planning Department may physically inspect a single-family transient vacation rental prior to a non-conforming use certificate being issued. (g) The Planning Director shall prepare an application form which shall be available to the public. If an operator as defined under Section 8-17.10(c) fails to apply for a nonconforming use certificate within sixty (60) days of the effective date of this ordinance the Planning Director shall assess an administrative late application processing fee of Fifteen Hundred ($1,500.00) Dollars at filing. Applications received more than one (1) year after the effective date of this ordinance shall not be accepted and the use of a transient vacation rental shall be deemed discontinued. (h) The owner or lessee who has obtained a nonconforming use certificate under this section shall apply to renew the nonconforming use certificate annually on the date of issuance of the non-conforming use certificate. (1) Each application to renew shall include proof that there is a currently valid State of Hawaii general excise tax license and transient accommodations tax license for the Nonconforming use. 3 ATTACHMENT No. 2 • Failure to meet this condition will result in the automatic denial of the application for renewal of the nonconforming use certificates. (2) Upon renewal, the Planning Department may initiate re- inspection of properties for compliance with other provisions of this chapter, or other pertinent land use laws, and may withhold approval of a renewal application and issue cease and desist notices to the applicant until all violations have been resolved to the satisfaction of the Planning Director. , (3) Applicant shall pay a renewal fee of One Hundred Fifty Dollars ($150.00) which shall be deposited into the County General Fund." (Material to be deleted is bracketed. New material is underscored.) 4 ATTACHMENT No. 2 ~~~ ~ ~ ~ ~ ~ (July 28, 2010) FLOOR AMENDMENT Bill No. 2318, Draft 3, Relating to Farm Worker Housing INTRODUCED BY: Jay Furfaro Amend Bill No. 2318, Draft 3 by amending Section 2 to read as follows: "SECTION 2. Section 8-7.3, Kauai County Code 1987, as amended, is hereby amended to read as follows: Sec. 8-7.3 Uses And Structures That Require A Use Permit. (a) The following uses and structures in agricultural districts shall require a use permit: (1) Animal hospitals (2) Cemeteries (3) Churches, temples and monasteries (4) Commercial recreation (5) Construction and worker temporary housing (6) Development campgrounds (7) Farm worker housing, unless the property has been designated as important agricultural land pursuant to Chapter 205 of the Hawaii Revised Statutes (8) Golf courses (9) Mineral extraction and quarries (10) Pet keeping and raising proposed within five hundred (500) feet of any Residential District (11) Poultry and piggeries when to be located within three thousand (3000) feet of any Use District (12) Private and public utility facilities (13) Schools and day care centers (14) Transportation terminals (15) Any other use or structure which the Planning Director finds to be similar in nature to those listed in this Section and appropriate to the District." Amend Bill No. 2318, Draft 3 by amending Section 3 to read as follows: -~~~i,SS~ "SECTION 3. Article 7 of Chapter 8, Kauai County Code, 1987, as amended, is hereby amended by adding a new section to read as follows: _ / Sec. 8-7.9 Special Standards For Issuance of Farm Worker Housing Use V Permits. (a) For the purposes of this Section, the following definitions shall apply: 1 ATTACHMENT No. 3 • "Commercial Farm" means an operation or enterprise in operation for at least one year whose owner has filed a Schedule F form with federal income tax filings with the Internal Revenue Service. The core function of the commercial farm shall be: (1) the commercial cultivation of fruits, vegetables, flowers, foliage, crops for bioenergy and forage (but excluding timber and turf farms); or (2) the raising of livestock, including but not limited to, meat and dairy cattle, pigs, goats, sheep, poultry, bees, fish, or other animal or aquatic life that are propagated for commercial purposes (but excluding the husbandry of horses for recreational or hobby purposes unless the farm complies with the guidelines set forth in §RP-2-3(a)(1) of the County of Kaua`i's Department of Finance Real Property Tax Division's Agricultural Dedication Program Rules). "Exclusive residence" means the real property that is the person's only home or residence. If the person has more than one home or residence, then the person does not have an exclusive residence. "Farm worker" is a farm owner, employee, contract worker or unpaid intern in a program that qualifies under the Fair Labor Standards Act who works no less than nineteen (19) hours per week in farm-related operations on a commercial farm. For the purposes of farm worker housing, a commercial farm owner may qualify as a farm worker only when he can demonstrate [that the proposed farm worker housing will be the farm owner's exclusive residence and if the affected lot has been subject to a condominium property regime (C.P.R.), that his respective C.P.R. unit does not qualify for any allowable residential density] the following: 1) that the proposed farm worker housing will be the farm owner's exclusive residence, and 2) that the affected lot has been subject to a condominium property regime (CPR) and the respective C.P.R. unit does not qualify for any allowable permanent density. "Farm worker housing" means the use of a building or portion thereof designed and used exclusively for the housing of farm workers who actively and currently farm on the land upon which the housing is situated. Farm worker housing may also be used to house the immediate family members of the respective farm worker. (b) The Director shall not deem an application for a farm worker housing use permit complete unless the applicant can demonstrate that: (1) the commercial farm has generated at least thirty five thousand dollars ($35,000.00) of gross sales of agricultural product(s) per year, for the preceding (2) two consecutive years for each farm worker housing structure, as shown by State general excise tax forms and Internal Revenue Service Schedule F forms; z ATTACHMENT No. 3 (2) the owner has dedicated the property upon which the farm worker housing will be located (hereinafter the "subject property") to agricultural use pursuant to Section 5A-9.1 of the Kauai County Code; and (3) the owner or lessee of the subject property upon which the farm worker housing is being proposed has provided a commercial farm plan with staffing needs outlined to the Planning Department that demonstrates the feasibility of the respective farm's commercial agricultural<.production. (c) The owner of a condominium property regime or unit in a condominium property regime may not apply for farm worker housing unless, as of the effective date of this ordinance: (1) the condominium property regime has received a final public report from the Real Estate Commission of the State of Hawaii and (2) the unit has been dedicated to agricultural use pursuant to Section 5A-9.1 of the Kauai County Code. (d) No use permit for farm worker housing shall be approved unless: (1) The application meets the use permit standards established under Section 8-20.5 of the Kauai County Code; (2) The Planning Commission finds that based upon the type of agricultural activity, size of the commercial farm, and farming methodologies, the applicant has demonstrated a clear and compelling need for farm worker housing and the number and size of structures applied for; and (3) The subject property's maximum residential densities, as established in Section 8-7.5, have been permitted and constructed. If the applicant can demonstrate that the subject property is a unit in a condominium property regime (C.P.R.), and that the maximum allowable residential density for the applicant's respective C.P.R. unit has been permitted and constructed, the Planning Commission may waive the requirements of this provision. (e) In addition to conditions of approval that the Planning Commission may impose pursuant to Section 8-20.5(b), a use permit for farm worker housing shall be subject to the following conditions: (1) The farm worker housing shall be used exclusively for the housing of farm workers and their immediate family; (2) A maximum of three (3) farm worker housing structures may be built on the property that is the subject of the permit. The total floor area of all structures combined shall be limited to 1,800 square feet and no structure may exceed 1,200 square feet of floor area. For the purposes of farm worker housing, the total floor area shall mean the sum of the horizontal areas of each floor of a building, measured from the interior faces of the exterior walls. The total floor area shall include enclosed attached accessory structures such as garages or storage areas, but it shall exclude unenclosed attached structures such as breezeways, lanais, or porches; 3 ATTACHMENT No. 3 (3) The structures shall have post and pier foundations. No concrete slabs shall be used in constructing the farm worker housing; (4) The structures shall be located on a plot plan approved by the Planning Commission; and (5) The owner or lessee of the property shall not charge the farm workers or their immediate family members for rent or electricity. (fj The land upon which the farm worker housing is located shall not be subdivided to create separate lots for the farm worker housing and the commercial farm. (g) The owner of farm worker housing shall annually certify to the Director of Planning that the Farm Worker Housing meets requirements and conditions set forth in Sections 8-7.9 (a) through (f). (h) Prior to the issuance of the building permit, the applicant shall demonstrate to the satisfaction of the Planning Director that the applicant has recorded in the Bureau of Conveyances or the Land Court, as the case may be, the requirements and conditions set forth in Sections 8-7.9 (a) through (g) respectively, explicitly stating that the use permit does not run with the land but is personal to the specific applicant, and that any subsequent owner must secure a separate use permit for farm worker housing." (Material to be deleted is bracketed. New material is underscored.) \\cok-nas-02\home\Floor Amendments\Farm Worker Housing, D.3\JF v.l (permit).doc 4 ATTACHMENT No. 3