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HomeMy WebLinkAbout05/04/2011 Public Hearing Transcript re: BILL#2404PUBLIC HEARING May 4, 2011 A public hearing of the Council of the County of Kauai was called to order by Nadine K. Nakamura, Vice Chair, Economic Development & Renewable Energy Strategies Committee, on Wednesday, May 4, 2011, at 1:38 p.m. at the Council Chambers, 3371-A Wilcox Road, Lihu`e, Kauai, and the presence of the following was noted: Honorable Tim Bynum Honorable KipuKai Kuali`i Honorable Nadine K. Nakamura Honorable Mel Rapozo Honorable JoAnn A. Yukimura Honorable Jay Furfaro, Council Chair RECUSED: Honorable Dickie Chang The Clerk read the notice of the public hearing on the following: BILL NO. 2404 - AN ORDINANCE AMENDING ORDINANCE NO. B-2010-705, AS AMENDED, RELATING TO THE OPERATING BUDGET OF THE COUNTY OF KALTA`I, 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 (Kaua`i Marathon grant $150,000.00), which was passed on first reading and ordered to print by the Council of the County of Kauai on April 6, 2011, and published in The .Garden Island newspaper on April 13, 2011. The following communications were received for the record: 1. Susan A. Kanoho, Executive Director, Kauai Visitors Bureau, dated May 3, 2011 ~2. Randall Francisco, Kauai Chamber of commerce, dated May 4, 2011 i3. Kristin Joy Collins, Assistant Director, Kauai Independent Food Bank, undated ,4. Roy Thompson email, dated May 3, 2011 ~5. Jody Kjeldsen, Executive Director, Po`ipu Beach Resort Association, dated May 3, 2011 -6. Doug Sears, General Manager, Grand Hyatt Kauai Resort & Spa, dated May 2, 2011 / 7. Andy Parx email, dated May 2, 2011 1 Ms. Nakamura: Before we begin, I'd like to recognize Councilmember Chang, who has some comments. Mr. Chang: Thank you vice Chair. I'm going to be recusing myself from this agenda item, so please take the meeting over. Thank you. Ms. Nakamura: Before we begin, I want to make sure that everyone who would like to testify on this matter has signed up, and there is a list up front here if you would like to sign up to testify. And we have circulated all the written testimony that we have received. So, Mr. Clerk, can you read the first, name of the first speaker. The hearing proceeded as follows: KURT AKAMINE: Good afternoon, my name is Kurt Akamine. I am speaking in behalf of the Kauai Chamber of Commerce. Earlier our President Randy Francisco submitted written testimony. I am here in support of the request for a grant of $150,000 for the Kauai Marathon. We believe that this event is yet another great opportunity to draw visitors to our island. Therefore, we support this request for the grant. Thank you. Ms. Nakamura: Thank you, Mr. Akamine. JEFF SACCHINI: Good afternoon, Council. Thank you for having me today. I am Jeff Sacchini, as stated, apart-time resident on the south shore of Kauai, also the founder of this event, and came up with this idea... And I am here really to just answer really two questions that I think are pertinent. I think first is why did I found this, and then secondly, why I think it deserves public funding. So I'll give you the kind of the...I know I've got three minutes, so I need to speak quickly. This event always in my heart, and I have spoken to many of you on council. It's been a labor of love for me. I enjoy this island with tremendous passion, I am an avid runner, I spend a lot of time here, I wish I could spend more, but you now, five years ago I was running and I thought what a great opportunity to have a world class event come to Kauai and to be able to showcase our beauty to be able to demonstrate goodwill with it being a charitable entity, and at the same time create economic impact. And I didn't know five years ago we'd be in economy that we are today unfortunately. You know, it's been tough getting corporate sponsorships to help support this event, and we could probably do a better job at that, and I intend to do just that. But this event has always been involved, from a charitable perspective not just for the south shore. This island, you buys have in your packets, I believe, we have clearly demonstrated charitable giving, even in times where we've never made money. As a matter of fact, my wife and I have invested a tremendous amount of personal resources to get this even off the ground, and if I had to do it all over again, I would do the same thing. I love the event; I love what it stands for. We had 40 something states. We had, you know, upwards 2 of 15 countries. There is no better way, in my mind, to be able to showcase a healthy event that is excitable, it gets charities involved on course, charities will eventually continue to receive the charitable opportunities of this event, with it being a 5010-3. And I know in today's fiscal conservatism, I understand spending money publicly comes with a lot of public scrutiny, and I get that and I understand that. But I am here today because this idea, I can only continue to fund this out of my personal resources and many of you have seen the financials, we have contributed a lot to this. And I don't want anything. I don't want praises. I am better behind-the-scenes kind of guy than I am being out on the forefront. But I love this event and I think many of you who have been involved with the event and seen the event, been around the event on Kauai, it was the weekends of Labor Day, it's a heck of a lot of fun. There is a lot of excitement. There's some celebrities that are coming out for it. I couldn't think of a more wholesome, healthy, and a more positive event for Kauai, and I truly believe it has all the makings of becoming Kaua`i's signature event. So I would urge you to look very carefully, as I know you do, but give it the support it needs, and eventually we'll be able to get out of have public financing, and maybe the county and, you know, the council and some...you, know, we can get some private folks together to get away from public funding and get the sponsorships that it deserves. But it's, like I said, it's been a tough economy to have corporate sponsorship come in to really step up to the plate. So thank you for your time. Ms. Nakamura: Thank you very much. SUE KANOHO: Aloha. Good afternoon. Sue Kanoho, Executive Director of the Kauai Visitors Bureau. We are here to offer our support the Kauai Marathon race. We have been supporters of the race. I believe that the numbers in the first year were very, very amazing to me, and continue to be. The one thing I wanted to point out that I didn't know about marathons, is that people fly in just to do the race, and then they'll stay on a couple of days, they'll come in a day... couple days before and stay couple days after. I just. had no idea until we say the amount of people that came from as far as Germany and Japan. So I see this as a great opportunity. And as you know, we don't have a lot of sporting events on the island that are of this caliber, and the TV coverage and the articles that it generates are really significant for Kaua`i'. So I see it as a diversification away from just sun and surf, and I think it's a very good event for Kauai. Mahalo. Ms. Yukimura: Sue. Ms. Kanoho: Did you see that? Ms. Yukimura: I just want to say you shouldn't be surprised. We have someone in our own midst, Kamika Smith. Ms. Kanoho: I know. 3 Ms. Yukimura: Kamika Smith, who goes all around the world running in marathons. Ms. Kanoho: I thought Kamika was a unique individual, and apparently they're all very similar that they will travel the world to go to marathons. So I thought... Ms. Yukimura: That's a good market. Ms. Kanoho: I was amazed at Kamika and didn't know there's many more of him. Ms. Nakamura: Thank you Sue. Ms. Kanoho: Thank you. HOWARD WARNER: Good afternoon. I am here to represent the volunteers that participate in this event. I'm sorry. My name is Howard Warner. I have been involved in this event with Jeff and Bob Craver since it started, as a supporter, as a volunteer, and have gotten to know dozens of other people that are friends and family of Jeff that come here on their own dollar to work at this event. And we all believe that better times are to come, that this event can grow into something that really generates some charitable giving here on the island. I know today, even with this event not generating a profit, Jeff and his wife Liz give to various entities to just set the spirit of what this is intended to do. And there's many of us that hope that we can continue to come every year, as we do, and volunteer our time and work at this event. It's important to understand how much work goes on to set this up, from getting the race course set up and making sure medical coverage is there, arranging for all the food and things that are necessary to supply to the participants, to clean-up, to just about everything you can imagine for an event, like the logistics, parking... And it take as a lot of work. I bring that up that up, simply because the county, I think by participating in this, gets a huge bang for their buck, because it brings along so many other people that work on this on their own time and dollar. Thank you. Ms. Nakamura: Thank you. CHIP BAHOUTH: Good afternoon. My name Chip Bahouth. I'm the general manager of the Sheraton Kauai Resort, and soon to be spa. I am here to testify in support of the Kauai Marathon. I'm a new resident to the island of Kauai, only having taken over the hotel in the last 100 days. But having been a resident of Maui where we had the Maui marathon for many, many years, and having worked with the Maui Marathon, I can tell you that this is a great event to have in your community. It brings a lot of visitors to the island, and as it continues 4 to grow, it will bring more visitors to the island. And as it relates to the future of it, the future is is that it becomes a branded event that helps the industry through the years, because people that come to the island of Maui that may participate in this event may come back to the...I mean island of Kauai, would come back to this event later as visitors for family vacations and so forth. So the marketing that it brings to the island is substantial, and we at the hotel fully support the event. We provide complimentary rooms to the event. We provide meals and so forth, to make this event happen because we believe in .the long run it is going to do well for the visitor industry. So your support would be greatly appreciated. Aloha. Ms. Nakamura Ms. Yukimura: questions? Thank you. I have a question. Oh, we're not allowing Council Chair Furfaro: Members, I want to share with you, this is a public hearing, the discretion to ask questions is solely in the subcommittee's chairman's responsibility. So if you have a question, you have to refer to the chair of that committee. Ms. Yukimura: May I? Ms. Nakamura: Go ahead. Ms. Yukimura: Mr. Bahouth? Is that correct? I just had a question. Is the Maui Marathon still going on? Mr. Bahouth: Yes, very much so. Ms. Yukimura: Council Chair Furfaro: and record your testimony. Ms. Yukimura: from Maui county? And... Chip, you need to sit so we can get you on camera Excuse my ignorance, but... and does it get support Mr. Bahouth: Yes, it does receive support from the Maui Visitors Bureau. Now it's a lot different than here. Maui Visitors Bureau gets about $32 million from the county. And so there is money that's put in to support the Maui Marathon, as well as the hotels in the Kaanapali area. Because the event is held in Kaanapali, KBRA garnishes rooms from all o the resorts within the area to help support the event for the volunteers and everything that's involved. So there is quite a bit of support throughout the community and the industry for the event. 5 Ms. Yukimura: Thank you very much. Mr. Bahouth: You're welcome. Ms. Yukimura: Thank you Chair. Ms. Nakamura: Thank you. Next speaker. RON WILEY: Good afternoon, Council. Good to see you guys. Hope to see you out there on the marathon this year. I am here to support the request as well, and I do have some experience having been at the birth of the Honolulu Marathon through some very similar... Ron Wiley, sorry about that. I don't get to say my name very often. My name is Ron Wiley, and I am here representing a person simply who has been involved with projects, nonprofits, and events for some 30 something years in Hawaii. Never seen something as well organized as this one. I do participate, and I have in the past two years...oh, not as a runner, as a mouth. However, not too long ago, in Phoenix, Arizona, I was at a little shop and a lady came up to me and said, are you the guy who called out my name at the finish line? They don't ever do that. You said my name, you said where I was from, and so on. It's very different. I would never have come to Kauai had it not been for the marathon. Anecdotal story, but it's very true, and it's something that these people are trying to bring to you through their organization, their immediate impact, and far-reaching impact. On the other side of it, I want to say they have also increased the local involvement by allowing a relay factor. So that...not that we don't have great marathoners, like Kamika, but we have people who are willing to run a small segment, so the local folks. The inspiration, seeing it happen, watching people train, watching them reach their goals, it should be a part of the county council's role to inspire that and to fund it if you can. thank you. Ms. Nakamura: Thank you Ron. LEE DRACHMAN: Good afternoon, County council. My name is Lee Drachman, and I am representing Niumalu canoe club. In addition, I have also been a runner of the Kauai Marathon. Just speaking in support of this bill, our canoe club volunteered last year for the marathon and we were able to receive funding which assisted in sending us to participate in the Na Wahine Molokai Channel Crossing. So I feel strongly that this money was very helpful in getting us over there. The marathon was incredibly well organized, and it just really allows the nonprofits that want to participate in community events to do so. Just wanted to also let you know that in addition to volunteering and receiving that funding, I was a participant and having run marathons before, I will tell you that Kauai Marathon had the best volunteer support I have ever seen in a marathon. It's 6 incredibly encouraging as a runner, and it really just spurs you on. So I think the volunteers are just priceless on the course. Finally, I want to mention that as working in restaurants here on Kauai, it... actually it's amazing that every year when the marathon comes the influx of business that we get in the restaurant, both the night before and that entire weekend. So for the economy, it's really appreciated. Thank you for your time. Ms. Nakamura: Thank you. Next speaker. JODY KJELDSEN: Aloha. As you mentioned, Jody Kono Kjeldsen with the Po'ipu Beach Resort Association. I am here also in support of the Kauai Marathon, asking for your approval of the requested funding for the 2011 event. We have been supporters of the event from the onset and we will continue to support it wholeheartedly. It's aworld-class event that we think has the potential to be really a signature event for not only south shore but for the island. It promotes economic benefit, but provides excellent exposure for the island as well. I was just on a media blitz in Vancouver and speaking with the journalists, there was also great interest on their part to cover events such as the marathon on Kauai and on really all neighbor islands, but specifically events that promote health and wellness. Thank you. Ms. Nakamura: Thank you Jody. BOB GRAVER: Good afternoon. Bob Craver, race director for the Kauai Marathon. I think it should be pretty obvious why I am here today. And to go back to your question first of all, JoAnn, about the Maui Marathon, I was race director there for 12 years, and it's in its 41st year this year. It is supported by the county. At times it was supported by the HTA. Their support has fluctuated over the years; I'm not sure where it's at in the past couple of years because I left there after the 2006 event and moved back to Kauai in 2005. But I am a 24 year resident of Hawaii. I lived here on Kauai from 87 to just after Iniki in 92, moved my family to Maui, and at that time...shortly after that time, I started full-time on special event production. And I have worked many very prestigious events throughout the country, on Maui, here on Kauai now with the Kauai Marathon, and I have to say that on Sunday, September 6, 2009, the inaugural event, on race day, I spend the majority of my day on the racecourse. If I am at the finish line, it's for no more than 5 minutes at a time, usually to drop off somebody at the medical tent or to check and make sure that the beer is still cold. But I am on the course, and I'll tell you, what overwhelmed me more than anything else was the overwhelming support and enthusiasm of the Kauai residents that were out there. I mean from mile 1 all the way through to the end, and people with their little homemade signs, go auntie, you know this kind of thing, and I mean people you would not expect to be out there cheered our marathoners. As I said, it blew me away. And I really think that the Kauai people appreciate this event. Our economy needs this event. And I would 7 implore that you please support this event full heartedly, so it can continue on into the future. Jeff's intention was for this thing to last as long as time, whatever. And as I've told the previous Councilmembers, I am not going anywhere. This is what I do for a living. This is a chunk of my bread and butter. It means a lot to me. I am very passionate about putting this event on. I'm very passionate about it being a world-class event. And honestly, it can only get better. Just a couple more things. As far as our participation, our first year was almost 1700 participants combined. Last year those numbers dropped down. So this year we did an aggressive local Kama'aina campaign to pick the numbers back up, and we were hoping to get 2001oca1 sign-ups in the first two weeks of December, and we got 325. So our numbers for this year are about 25% of where we were...25% ahead of where we were last year at this time, and about 9% ahead of where we were in the first year. So our goal and our hopes this year is that we're going to have at least 1800 participants total. In addition to the charity benefit here on the island to the nonprofits, we have national charities that do participate in this event. If you see in some of the testimony that you have received, the leukemia lymphoma society which runs marathons and does triathlons and bicycle races through throughout the world, in the first two years here alone, they have raised $600,000 for research, and they're bringing 100 participants for this year, anticipating raising another half million dollars. So if you combine that...the first two years, this year, what we've provided to the local nonprofits and what our other charities running on a national level have done, it will exceed $1.6 million in three years that's been raised for charities. I think that's a pretty powerful statement. Council Chair Furfaro: Excuse me. Just for the record, so that you know, your first three minutes expired about a minute ago. Mr. Craver: Okay, I am almost done, thank you for allowing me the extra time. So in closing it's not only the benefit economically but to the nonprofits as well, that's our intent, and it will continue, but it's critical that we have the county funding to make this thing continue at the level it has. Thank you very much. Ms. Nakamura: Thank you. Next speaker. ROB ABREW: Aloha Councilmembers. My name is Rob Abrew, for the record. My comments here are not about the Kauai Marathon or about the participation or who runs it, but it's about the process of this $150,000 being asked for right now. I believe two weeks ago in the April 6 meeting there was some discussion with first reading, and there was some discussion about passing this through and moving it on into a public hearing. And there was a participant there that has since recused themselves, and they voted in that to move this forward. If 8 that person hadn't had voted, there would have been five votes. No one knows how those five votes would have gone. So I guess I'm asking a procedure note, is this bill a correct bill, because it is introduced by someone that recused them self. Council Chair Furfaro: I will respond to that for you that if the request came in through the administration, then we can continue to process it. If you look at the current budget process, you will see that the Kauai county's and the administration's intention was to support the launch of this marathon for a period not to exceed three years. That request came through the administration. So as not to pursue any more of your time to give public testimony, if you would like more information from that as me as Chairman of the council, I would be glad to meet with you offline. But your question has so been noted. Mr. Abrew: Thank you. So with that being answered, this money is coming out of a surplus of property taxes paid by property owners, which I am. On all the county documents for real property taxes, it states each year Kauai property owners make an investment in the county which they pay their real property taxes. Every dollar is returned in the form of vital services, including police, fire protection, street maintenance, and recreational facilities and activities. I believe this $150,000 should have been in last year's budget, if it was, if not. There is $120,000 in the 2012 budget for this marathon. So right now if this bill passes, the county is going to allocate 270,000 for this marathon. As a property owner, the surplus is the taxpayers money. It's not the county's money to give away. It's the taxpayers money. We were, basically in my opinion, overcharged by $34 million in tax revenue. And to see a group, not a group but the administration come here rushing once we figured out we have $35 million in surplus to bring a bill for $150,000 for something that is already in the budget. I don't know if it was in last year's budget. I don' t know if anyone can tell me. But this is in addition to other support we are already giving. And for that, that's why I believe this is the wrong venue and the wrong approach to ask for this. If they want $270,000, ask for it in year's budget. Thank you. Ms. Nakamura: Thank you for your comments. I think the Chair has some comments. Council Chair Furfaro: Surely. On May 9 and 10, this body will be hearing the operating budget for the county of Kauai. In that discussion, and so we're very clear, is there is an attempt to correct and apply ourselves according to general accounting practices that our surplus should then be converted into a reserve. It's recommended by good government practices that a reserve account be established in the event of flood, hurricane, other emergencies. So we are in the process of answering your query about surplus versus reserve, and I would encourage you to come back and give testimony on May 9 and 10. 9 Mr. Abrew: Thank you Councilmember. I am sorry, my only point was is I understand we are moving forward to it, but this is last year's money. This is money that has already been allocated. The property taxpayers have already given this and they were never had a chance to give testimony about this $150,000 going to the marathon. Council Chair Furfaro: This is the testimony function of this committee. And I want to reduce my comments to you only for the purpose that I stated the rules earlier. This is a public hearing. This is the opportunity to give feedback. Next week this bill will move to committee under Council Chairwoman Nakamura. Additional testimony will be made available and so stating of that intent of the committee will be posted in the Garden Island. Ms. Nakamura: Thank you for your testimony. Councilmember Yukimura. Ms. Yukimura: I just want to say that part of our budget from which we take moneys like this appropriation is also $13 million of TAT, tourist accommodation taxes, as well. So arguably it could be coming from there. Thank you. Ms. Nakamura: Can we go on then? Thank you very much. Next speaker. Is there anyone who would like to testify but didn't sign up? Okay, Mr. Mickens. GLENN MICKENS: Thank you, Nadine. For the record, Glenn Mickens. I completely support this marathon. I would support any sporting event that happens to come to Kauai, with one caveat. The same thing that Rob just said. I know there are probably a lot of people on this island that don't really like sports, and I don't know that they want to pay $150,000 to support this. And the gentleman made the statement that they are doing everything they can to be able to make this income producing so they don't have to come here and ask the council for added moneys to put it on. And I hope that day will come. But I really. appreciate the time, the effort, and everything that these people all do to put this marathon on. I think it's outstanding for the island. But again, there are people out there, I believe, they may not be real sports fans. they don't care whether there is a marathon going on or what. So I don't think that they should have to pay for this event. So hopefully it will become self-supporting. Ms. Nakamura: Thank you. Mr. Mickens: Thank you Nadine. KEN TAYLOR: Chair and members of Council, my name is Ken Taylor. I too support the marathon, but I find it somewhat difficult to support the 10 request for $150,000. We heard testimony today from the gentleman that runs this activity, and he has done a good job, there's no question about that. But he says he makes his livelihood off of this activity, and I find it very difficult for you folks to be giving him. $150,000 to put on this event, even though it brings a lot of people to the island and gets a lot of people around the country knowing about Kauai. I think that's great, but when a... I was 35 years in a private business. I never had the opportunity to go and ask government to give me $150,000 to benefit me and something I wanted to do, regardless if it was to make the community better or anything else. So I find it really, really troubling to have an individual...I mean nobody is forcing him to make this decision to put on this event, and if he wants to do it, he should be going out to private businesses in the community and saying; I need your help. Some of them have stepped up to the plate and are making some offers. But if he needs the $150,000, he should be out in the community asking other private businesses to help promote this activity. So as I said, I am certainly in support of the marathon, but not in county giving $150,000 to this activity. Thank you. Ms. Nakamura: Thank you, Mr. Taylor. Would anyone else like to testify at this time? If not, I wanted to let you all know that this bill will now be referred to the Economic Development and Renewable Energy Committee. That meeting will take place on May 11, same place, here. And the committee will then deliberate and there will be opportunities at that time for further testimony. I will adjourn this committee then. Thank you. There being no further testimony on this matter, the public hearing adjourned at 2:11 p.m. Respectfully submitted, V`~.~. PETER A. NAKAMURA County Clerk /ao 11