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HomeMy WebLinkAbout 04/27/2011 ECONOMIC DEVELOPMENT AND RENEWABLE ENERGY STRATEGIES COMMITTEE Committee MeetingMINUTES ECONOMIC DEVELOPMENT & RENEWABLE ENERGY STRATEGIES COMMITTEE April 27, 2011 A meeting of the Economic Development & Renewable Energy Strategies Committee of the Council of the County. of Kauai, State of Hawaii, was called to order by Councilmember Dickie Chang, Chair, at the Council Chambers, 3371-A Wilcox Road, Lihu'e, Kauai, on Wednesday, April 27, 2011, at 9:58 a.m., after which the following members answered the call of the roll: Honorable Tim Bynum Honorable Dickie Chang Honorable KipuKai Kuali`i Honorable Nadine K. Nakamura Honorable JoAnn A. Yukimura Honorable Mel Rapozo, Ex-Officio Member Honorable Jay Furfaro, Ex-Officio Member The Committee proceeded on its agenda item as follows: Bill No. 2399 A BILL FOR AN ORDINANCE TO .AMEND CHAPTER 23, OF THE KAUAI COUNTY. CODE 1987, AS AMENDED, RELATING TO THE REGULATION OF BUSINESS AND TRADES (This item was deferred.) Mr. Chang: It is our intention to have this Bill 2399...we're going to defer this; however, I want to make sure that we can have some time, if there's anybody out there who would like to testify to the item? If not, our intention is to defer; however, we have some discussion. Councilmember Yukimura? Ms. Yukimura: Yes, and I need to have our staff person Christiane Tresler here, because we're supposed to have a copy of the proposed amendment circulated. Council Chair Furfaro: I have to apologize for that. I sent her on an errand to make some phone calls to some other agencies. So maybe we should take a short recess here. Mr. Rapozo: I have a question. 1 Ms. Yukimura: Council Chair Furfaro: an errand. Ms. Yukimura: Council Chair Furfaro: the office, Christiane. Mr. Chang: the floor. Okay, we actually have them here. Oh you have them. I'm sorry I sent her on Oh there she is, but it is being distributed. Thank you. My apologizes for sending you out of Councilmember Yukimura, .you still have Ms. Yukimura: Thank you. Not everybody has these amendments. Let me just review for you that...the history of these amendments,. When Councilmember Kawakami, now Representative Kawakami, worked on this bill, it might have been the last committee meeting where he was present, we had decided together that we needed to narrow down and clarify some of the provisions of the bill, and so he asked me to do that, and then, of course, left and we're all happy about that, to be at the legislature. So I finally. did get to work on it and these were what we sent actually Saturday night to now Representative Kawakami, because I wanted to stay aligned with his purposes, and also to Mr. Costa, because OED is very much involved in this. And this is not properly formatted, but it gives you an idea of the direction the amendments are going in and I wanted to distribute them now, so that you would have time to look at them before the next meeting, and even give input to me if you have concerns or considerations about this bill. And I did speak with Representative Kawakami this morning and he asked me to let you all know that he has reviewed them and feels that they are going in the right direction. Also, Mr. Costa and I met with our staff person, Miss Tresler, and we discussed all of this yesterday and we have some things to work on, and also, it became clear that we need to get a review by the county attorney, because there are some enforcement provisions in here that need to be clearly formatted as well. So there is still work remaining to be done. But this does give you an idea of the direction we're going in and it does give you time to review them and think about how we would like the final bill to come forth. Are there any questions? Or I can even go over each piece right now, but actually there is commentary along the way that explains the rationale for the different proposed Changes. Any questions? I know that there is somebody from the public who wishes to testify. Mr. Chang: Hold on for a second. Councilmember Rapozo? 2 Mr. Rapozo: I don't have a question. I guess I'm just wondering if we're able to discuss it if it's not introduced; that would be my only concern. It's stamped draft, so I'm assuming it's not...you're not .going to be proposing to introduce this today? Ms. Yukimura: No, but I think we can discuss the draft. The bill is on...we can put the bill on the floor. Mr. Rapozo: Right, the bill is on the floor. Ms. Yukimura: And these are conceptual amendments that have to be formatted. So I'm just letting you know which direction we're going. Mr. Rapozo: I appreciate that. Ms. Yukimura: I think once the bill is on the floor, it's open for discussion how we want to amend it. Mr. Rapozo: If you are going to go step-by-step on the amendment, your proposed amendment, I believe it .needs to be introduced. If you're going to discuss the issues that you haveconcerns on as it pertains to the bill, I think that is fine. I think that is where I'm heading because once you discuss it as an amendment and then the public can get a copy of the amendment, but it's not an amendment, because it hasn't been introduced. But I think as far as .discussing the issues that pertain to the bill, that is fine? Ms. Yukimura: Alright. Are there any questions? Mr. Chang: My apologies. First of all, I did not realize somebody wanted to speak in the audience. So can I suspend the rules right now and ask? Ms. Yukimura: That is fine with me. There being no objections, the rules were suspended. Mr. Chang: few words? My apologies. Mr. Taylor, did you want to say a KEN TAYLOR: Chair and members of the council, my name is Ken Taylor. I just received this document, so I haven't had time to read it. But from past discussions and where things have been, I'd like to just remind each and every one of that you agriculture is a very broad group of activities, and one of the problems that I have seen in the past is that we have eliminated from participation in the local markets the ability for people raising eggs, quail eggs, and honey to 3 participate in the markets, and I think that is wrong. I think that anybody that's involved in agriculture here on the island should be able to participate. There may be certain rules and regulations that they have to meet in order to do so, but they shouldn't be excluded from participation in the market activity, and that has been the case. So I hope as you move forward with this activity-that those, along with some others that I may not even be aware of, but I think it's...before you go on to value-added items that these people that are truly involved in agriculture should not be eliminated from participating in the markets. So I hope, again, that they get included. as I say, if certain rules and regulations governing how they participate or what they have to do to participate, that is fine, but at least let them make the choice of following those procedures, so that they can participate. Otherwise... I mean they are out there selling their products anyways. So it's better to have them sold under a controlled environment than to just be neglecting those environments and selling alongside the roads. So those are my comments. Thank you. Mr. Chang: Thank you. Hold on Mr. Taylor. Councilmembers, any questions for Mr. Taylor? Councilmember Yukimura. Ms. Yukimura: I want to let you know, Ken, that honey has been included in these amendments, and I'm thinking that eggs are farm produce, but we can certainly discuss this with economic development. So they may be both included. We have four value-added products. We are requiring, through this bill, products liability insurance, and I think honey is going to be required to have that too, because there are some issues with contamination of honey and the need to make sure that the quality is pure and safe, and that may be an issue with eggs as well. So I don't know. That is an issue, but we have time to look at that. Mr. Taylor: Fine, I appreciate that. And just in reference to eggs, it should be because we do have an individual on the island that raises quails for quail-egg production. That is an agricultural activity and it should be included along with chicken eggs or duck eggs or ostrich eggs or anything else that you may participate in the ag operation. Thank you. Mr. Chang: Thank you, Mr. Taylor. Any other questions for Mr. Taylor? If not, any other members? Mr. Mickens? GLENN MICKENS: Thank you Dickie. For the record, Glenn Mickens. Just a thought, from what you are saying, JoAnn, wouldn't any product, whether it's vegetables, flowers or anything, have a tendency to be contaminated. If you are going to put restrictions on honey or eggs or anything, isn't anything sold at that sunshine market under the being able. to be inspected or anything prior to the time it's being sold? Ms. Yukimura: Well, there is provision existing which requires farmers to indemnify the county for...if there is any problem with the produce sold. 4 When you have value-added products, which is the step of manufacturing, and some processing I guess with respect to honey, then there is another level of concern and that is why the added level of insurance. We can consider, but we would have to make a decision as to whether the cost of a higher level of insurance is necessary, because it will add an additional burden of costs to the producers of produce, which is a much less value than value-added products. So you have to weigh a lot of things. Mr. Mickens: How many things are value-added? Have you got a list of what is considered value-added? Ms. Yukimura: No, but we have a definition of "value-added," which is "products made from raw agricultural commodities cultivated on the vendor's premise. Mr. Mickens: That includes eggs? Ms. Yukimura: No. Eggs are raw produce. Mr. Mickens: They're not value-added. Ms. Yukimura: If you make scrambled eggs and you market it, then it's a product. I mean it's avalue-added product. Mr. Mickens: Right. My only concern is it sounds like it could be discriminatory towards people with honey or any of these value-added products that are actually here on Kauai that want to use the same premises to go ahead and sell their produce or whatever. Ms. Yukimura: Well, the whole thing about this bill is that it's opening the markets up to value-added products, so it's giving them an opportunity. But we have to be prudent in how we do it, and because manufacturing has another level of risk, because of that process, and also products liabilities laws, we need to be assured that we're covering ourselves as a county against defective or detrimental products. Mr. Mickens: So the biggest barrier that's going to be... AL CASTILLO, JR., County Attorney: Excuse me, committee chair Chang, excuse me for the interruption. However, in terms of parliamentary procedure and council rules, the give and take with the Councilmembers right now is really into the deliberation process. The testimony -- the testifier is given three minutes plus three minutes and plus maybe four minutes, up to the discretion of the committee chair at this point in time, but a back and forth discussion is really deliberation, which is not proper. 5 Ms. Yukimura: And so we'll end this, but I want to say that some discretion is allowable in terms of educating the public on an issue. Mr. Mickens: Well, I appreciate your... and I disagree with Al. I think you're giving me good informational purposes; that's all I was basically asking for. Thank you JoAnn. Mr. Chang: Thank you for the question. Any other members? If not, we'll call the meeting back to order. Any discussion? Councilmember Bynum? Mr. Bynum: No. Mr. Chang: Council Chair? Council Chair Furfaro: I'm not a member of your committee, so I will testify after you have taken committee testimony. Mr. Chang: Okay, any other committee members? Councilmember Kuali`i? Mr. Kuali`i: It's just about process. So we were just handed this amendment now and I want to have time to read it and get into it in detail, of course. And then we're going to be hearing from our director of office of economic development, but not today? Mr. Chang: Yes. Mr. Kuali`i: And the information that I received was that and Vice Chair Yukimura just said it that we still need to get a review by the county attorney. So process-wise it seems like we should move forward with. deferring this. Mr. Chang: Yes, and we're going to just have a conversation, then we're going to ask for a motion to defer. Any other committee members? Mr. Rapozo. Mr. Rapozo: I just want to say that I appreciate the format. I think with the comments on the side bar, I think it just alleviates a lot of questions. So maybe that is something that we should use as our standard. It makes it a lot easier for Councilmembers who are not really familiar with the discussions. So thank you.. Ms. Yukimura: Thank you. 6 Mr. Chang: Any other Councilmembers? If not, Chairman Furfaro? Council Chair Furfaro: I just want to answer this piece about the insurance document, so that we all understand the value of having that insurance and a procedure to follow-up to make sure that the policies are in effect, that the county of Kauai is named co-insured, is exactly about fresh product. Because we're implying that it's fresh. An egg may not be fresh to the point that it is free of any particular bacteria that might cause afood-borne illness., Therefore, the county has to be co-insured for the protection of what we are merchandising in the way of these fairs and products that are there. It's an implied warranty-the product is fresh. Okay? If the product is not fresh, and we don't have systems, we need to be protected with the co-insured policy. So I just want to make sure, no matter what the item is, there is an implied warranty. The implied warranty requires us to be prudent in having insurance covering the county. Mr. Chang: Thank you Mr. Chair. Councilmember Nakamura, did you have a question? Okay, Councilmember Yukimura. Ms. Yukimura: I just want to acknowledge the county attorney's office: Deputy County Attorney Amy Esaki responded to some questions (I'm not even sure who asked it, but it was on the floor) about insurance... (Thank you Chair) that when insurance might lapse for a variety of reasons and whether there be a duty to inform us so that we're aware of it. She came back with some proposed wording, both an opinion about it and proposed wording, which I have incorporated here and I hope that perhaps she will be the one who can .help us review the next level of this. But thank you, county attorney, and it's just an example of the teamwork that is involved in this kind of legislation. Mr. Chang: Thank you. No other discussion. I just want to take this opportunity to thank you Councilmember Yukimura. I know that you have been working very hard and I appreciate you keeping in touch with Representative Kawakami, not only last night, but of course this morning. And I also want to thank George Costa. I know that you folks are working on this. Ms. Yukimura: He has been very helpful. Mr. Chang: Yes. This is the first time that we've all seen this and there are concerns that we'll address through our county attorney, but with that being said... Ms. Yukimura: Mr. Chair? I just want to mention too that Bill Spitz, the ag staff person at OED, has also been involved in the review of this. 7 Mr. Chang: Yes. Thank you. If there is no other discussion, the motion is to defer. So if I can get a motion to defer, please. Upon motion duly made by Councilmember Bynum, seconded by Councilmember Yukimura, and unanimously carried, Bill No. 2399 was deferred. Mr. Chang: No further business. The economic development and renewable energy strategies committee is now adjourned. Thank you very much. There being no further business, the meeting was adjourned at 10:17 a.m. Re ec lly submitted, Aida Oka aki Legislative Services Aide APPROVED at the Committee Meeting held on M~y~. 11, 2011: Dickie Chang, Chair Economic Developmen & Renewable Energy Strategies Committee 8 DRAfT PROPOSED AMENDMENTS TO BILL NO 2399 RE VALUE-ADDED PRODUCTS AT SUNSHINE MARKETS (NEW) SECTION 1. 'Findings and.purpos~. _The. Council. of the. County of Kaua(Ji _ finds that the ongoing success of the Sunshine Markets in encouraging the cultivation and marketing oflocally-grown produce can be expanded by allowing Sunshine Market vendors to sell value-added products made from their fresh produce. Value-added products enable better use of off-grade produce and a greater return and profitability. for the farmer. This increase in profitability of farms and farmers will strengthen local agriculture and boost Kaua©i's food security. The Council also finds that allowing the sale of honey and honey products will promote KauaDi agriculture because honey is a raw agricultural product and because the cultivation and spread of hives promotes agriculture by the cross fertilization of crops essential to the full development of various crops. This bill thus allows any vendor at a Sunshine Market to sell valued-added products derived from produce grown on the subject farm as well. It also allows the Director of Economic Development to issue up to two permits per Sunshine Market to vendors oflocally produced honey. PRESENT SECTION 1 BECOMES SECTION 2. IN THE NEW SECTION Z, Sec. 23-3.4(b) Definitions, make the indicated changes. "Recyclable Paper Bag" means a bag that meets all of the following requirements: (1) contains no old growth fiber; (2) is one hundred percent (100%) recyclable overall and contains a minimum of forty per cent (40%) post-consumer recycled content; land (3) displays the words "Reusable"'and "Recyclable'`;m a highly visible manner onthe auiislde of t$e~bag~ ~ "Value-Added Products" shall mean 1(the highest gnalits~ food~';products made __ from raw agricultural commodities/ingredients cultivated [on the island of KauaOi] on the vendors premises. ' IN THE NEW SEC. 23-3.4 (c) make the indicated changes (c) The Director of the Office of Economic Development is authorized to select suitable areas to accommodate the Sunshine Market farmers in the sale of farm produce, value-added products. honey, and live farm-raised fish at reduced prices. Comment [M7]: This establishes4he rationale for allowing value-addedproducts - inthe Sunshine Markets. ; It sticks to former CM Kawakamiihssintenbon that the bill rincrease the profitability for farmers. It implies that we willnotbe looking to allow `. any and all vendors ofvalue-added products made from Kaua®i grown produce to vie for'' a Sunshine Market booth. Thisblll seeks tp increase markets for farmers. The challenges ofspace, parking, regulating the "Kaua®bgrottm" requirement of Sunshine Markets, makes 1t premature to try to accommodate any and al] marketers of value-added Kana~i products made from a'g'ricultural cornrtioditites:. Comment [IN2]: I just through this in because honey 1s not now allowed and !s something we might want to allow; but should provide fire million dollaes produces liability insurance required of value added products but noiof fresh produce. - Comment [M3]; This part of the;plastic bag..; ordinanceis ntit happening-and iY®s not necessary to the purpose of the plastic bag ' la~,v. To add'there~would be Yo make it laar~ler for thevendors to provide recyclable - bags::' Comment [M4]: Am proposing to delete these words because [don®t thiiikwe want to have to }udge whet highest quality means. Am also proposing W delete the word, "food" because there eould be products such as perfumes', soaps, etcmade from agriculhiral products. If they come from a ;farmer who is selling at[he Sunshine Market, do we want to resMcbhim to food? f usta query to;ourselves. ~t ~! Ala ~~~ t The opening of the site shall be left [at] to the discretion of the Director of Economic Development. (1) The Director of the Office of Economic Development, in consultation with the [Department of Public Works,] Department of Parks and Recreation is authorized to promulgate rules and regulations relating to the area, location, number of farmers, produce, value-added products, honeX, and live, farm-raised fish that maybe sold, insurance, cleanup, sanitation, hours of operation, traffic control and other safety and welfare conditions ~[shal] continue in force until subsequent action by the Director and shall ]_ This shall be in addition to any other relevant requirements [established by the State]of state law. (2) The Director of the Office of Economic Development may delegate the ~[overseeing'of regulations] managemenfand r~ulatioii of any Sunshine Market to a` representative of the vendors [farmers operating in the]'partici 'ating irrahat Sunshine Market onto a suitable lion-profit entityrprovided that_in the event of any,,, violation of any rule or regulation, the Director may suspend the operations~(of the marltet orthe vendor(s)?)for an_appropriate length oftime, depending on the___ _ ___ severity and frequency of the violation. - ~iEW SEC. 23-3.4(d)~ (d) Prior to selling any product allowed under Section 23-3.4(c), each vendor shall: (1) Sign an indemnification agreement developed by the County Attorney holding the County harmless and releasing it from all liability. (2) Sign a written agreement furnished by the Director of the Office of Economic Development acknowledging the intent of Section 23-3.4 that the Sunshine Markets are for the purpose of promoting the sale of agricultural produce and value-added products grown, or created from produce grown, on KauaDi and agreeing that the Director, after reviewing all pertinent evidence, has sole discretion as to whether a product or produce meets the intent of Section 23-3.4. The test for value-added products shall be the utilization of KauaOi grown agricultural produce or products in the final value-added product and not the value of labor, intellectual property, packaging or other factors or components used in the final value-added product. Selling produce or products not grown or produced on KauaDi shall be considered a major breach of the privilege of selling at the Sunshine Market. SEC: 23-3.4(e) SHOULD REAb AS FOLLOWS __ fie) Prior to selling any value-added product at any Sunshine Market a Sunshin Market vendor shall: Comment [M5]: l am proposing o eliminate these words because hey constitute a "run-on" sentence (read Che whole sentence andyou,will see what I mean) and the meaning of the words goes without saying-ie., the words are not necessary. Comment [M5]: I am hopeful thatthe wording i am proposing here is clearer and gives OED important options, butgou tell _ me if you wantthe additional option or not intention of the words are here and 1 thought it would be an opportunity to cleat 1t up'so that enforcementcan be easier, buYl need some guidance. Ytiu will see that Amy Esalfi, in the section of aboutinsurance ';Suggests alternative wording thaYdefines Certain actlonsby a vendor as a major breach, laying the. basis for terminating a nermlt Co(it1n81tt [MB]: This takes the vrording ' from the old section (d), cleans it up and adds the wording from present section 23.3- 4(e)(4). Theresuitisalistofrequirements for al] venoms. 151 requirement indemnification. 2dxequirement: agreemeriE that produce must come from Kaua®i, plus some guidance for judging whether avalue-added product is from Kaua®i Comment [M9]: This Becton puts in one place all the requirements for selling value- added products and requires honey vendots` to abide by the same insurance requirements.' (1) Become a qualified member of the "KauaOi Made program and retain that status as long as the vendor sells value-added product~l at the Sunshine Markets. (2) Submit to the Office of Economic Development copies of permits establishine that preparation of any value-added product requiring a kitchen will be produced in a certified kitchen as specified by state and federal laws. ~ncluding but of lirgi~e~~o J~beling laws(??l . (3) Displa all required permits at vendorOs Sunshine Market booth (4) shall comply with any and all requirements of the Department of Healt}~ (or retail sales at the Sunshine Marketsites without any obligation on the part of the County of KauaOi to assist such vendor or adapt the markets as a result of the sale of processed products ~ (5)Provide the County a certificate of insurance establishing-that the vendor is carryingproduct liability insurance in the amount of One Millidn Dollars (~1 000-0001 naming the County of Kaua©i as'an additional or whenever anew product is new producing in the market. [a) The certificate of ins ~ranra shall b rump re by ~l r authorized representative of the insurer certifying that-the liabilit}~ c vera e s is wri n an a o c rr nce forma d tha the rpverage(s1 wilPnot be cancelled non-renewod or materially chaxiged by endorsement or throt>gh' issuance of other policies of insurance without thirty (30) days advance written notice to the County Al] coverage required by the Vendor evil] be primary_ over any insurance orself-insurance ]grogram carried by the ~:~unty (b) ~endor`shall furnishxhe County with orieinal certificates and endorsements`effectineraquired coverage (s) All certifiratPS and endorsements are to be received and approved by the r_~nnrs~ before avalue-added~roduct is sold. The county reserves the right to require complete certified cosies of all r~qulred nsurartc~ golicies includine endorsement~~ff~c~ine the coveraee required. at an, tY ime. (c) Failure to secure and maintaimthe required insurance°shall e4nsidered a major breach of the;privilege of selling at the S~inshine Market Should the ounty 6e fo r>_ced to expend funds - Comment [M10]: This phrase as used does'- noYmake sense. Are we saying that we wantthe vendors to comply with labeling laws? 1f so, we should say", and will be labeled as required by state (is itonly state?) law. -' CommenYllVl11]: [1)(Nbt clear as to issue r or requirement re DOH e'etail sale requirements and lack of Countypbligation, Whatever the requirements, it needs to be stated more clearly, butd don®t know issue enough to trya re-statehient) that would have been covered under the specified insurance Vendor shall agree'to reimburse County for such fonds _ (dl EI'-his requirement (23 3-4(elLshall aavl:~ to honey vendors as well. PRESENT SEC. 23-3.4(e)[4) is deleted because it has been incorporated as new Sec 23-3.4(d)(2). PRESENT SEC 23=3.4(e)(5) has been moved to Sec. 23-3.4(d) PRESENT SEC. 23-3.4(e)(5) BECOMES NEW SEC. 23-3.4(f) with changes as follows; PRESENT SEC. 23-3.4(e)(6) BECOMES NEW SEC. 23-3.4(g). No change to wording: (g) The Director of the Office of Economic Development may establish fees for vendors participating in the Sunshine Market. PRESENT SEC. 23-3.4(e)(7) MOVED TO SEC. 23.3-4(d) and added thereto along with sentences proposed by County Attorney Amy Esaki re product liability insurance. PRESENT SEC. 23-3.4(h) REMAINS THE SAME: (f) Vendors at the Sunshine Markets ay offer recyclable paper bags and/or reusable bags for sale to customers. Comment [Mt 2y: This section oh products' liability insurance combines the present 23.3,4(e)(5) with wording suggested by AmyEsaki in a confidentiaPmemo from the. +. County AttorneylHs office to the Council re insurance provisions: This is a7ot of detail tharcould be included in OED-.promulgated rules rather than the ordinance. Comment{M13]: This provision applies the section requiring products liability insurance from. value-added products to the saleofhoneyaswell: •. Comment [M14]: we don®tneedthis section any more since value-added products are allowed to be sold only by those vendors'who have regulaz permits to the'Sunshine Markets. Comment [M15]: Assuming we decide to allow honey, and because honey vendors.. are usually separate from farmers of other produce, we need to specifyhow they will be integrated into the market. The gived . ' wotdfng begs-the question as to whether first come first served, applies Drily to honey , vendor applicants or to all permit applicants'. if we don®t want to allow honey, Just drop this wording: PRESENT SEC. 4 i(This :Ordinance shall take effect upon its approval.) ,..--~ comment [iui~s]: oED;,ao yon wane this or do you-are you ready to administer immediately? ,'Dr, should we delay the effective date to give yousome time to promulgated rules and regs. The total number of permits is set at the sole discretion of the Director