HomeMy WebLinkAboutEconomic Development FY2013-2014 DEPARTMENTAL BUDGET CALL-BACKS 04-23-2013
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The departmental budget call-backs reconvened on April 23, 2013 at 2:55 p.m., and
proceeded as follows:
Office of Economic Development
Honorable Gary L. Hooser
Honorable Ross Kagawa (excused at 3:22 p.m.)
Honorable Nadine Nakamura
Honorable Mel Rapozo
Honorable JoAnn A. Yukimura (present at 2:56 p.m.)
Honorable Jay Furfaro, Council Chair
Excused: Honorable Tim Bynum
Chair Furfaro: Aloha and welcome from our short break. We are
coming to a point that we are getting ready to wrap up the Budget and the Call-Backs. One
(1) of the Call-Back items that was pushed to today was, in fact, the Office of Economic
Development (OED), still some narrative from the Director, but mostly we are going to be
focused on the Capital Improvement Projects (CIP) projects in Economic Development.
Before I go any further, I would like to extend the courtesy to anyone who wants to give
testimony on, and I want to recount the general Office of Economic Development or any of
the CIP budgeted items. Susan, come right up. Good afternoon.
There being no objections, the rules were suspended to take public testimony.
SUSAN TAI KANEKO: Good afternoon, Council Chair, Vice Chair, and
Councilmembers. Thank you for the opportunity. I wanted to refer to an item that is on
the CIP budget for the Office of Economic Development, mainly in reference to the
Multi-Species Processing Facility and Commercial Kitchen Business Incubator. I wanted to
thank you for the opportunity to share my support for those project and especially how it
ties into the Food Hub Project that has been referred to in previous meetings. I know some
of you have requested more details on that project, so I guess I will take this opportunity to
provide a Cliffs Notes version of why it is such an innovative program that strategically
addresses a number really long unmet needs for our local Food & Agricultural Industry
cluster. This Food Hub Project stimulates food security and self-sufficiency. It is a ground
breaking idea, but it is also ground in solid programming as we worked with various, really
qualified consultants who have worked very directly with our local meat and food
producers. Those producers, who also confirmed the need for these types of projects and
services.
First of all, I really wanted to thank the County of Kaua`i and the Office of
Economic Development because you funded the Feasibility Study last fiscal year and the
current business plans on the Multi-Species Processing Facility and the Commercial
Kitchen Business Incubator Project. Also, thank you to George Costa in OED for all of his
input and all of his feedback as we developed the projects. Also, many thanks to Kaua`i
County Farm Bureau and the Kaua`i County Cattlemen's Association for really stepping up
and jumping in to provide the support and also, the connections into their constituents and
their communities so that we can get that proper feedback from potential users.
These two (2) facilities that are otherwise, in our findings in the Feasibility Studies,
too expensive and cost prohibitive for each individual rancher, food producer, and farmer to
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create something like that on their locations themselves. Especially with a lot of food safety
regulations coming down the pike, facilities like this are even more in need. These
programs provide an affordable place for the producers to prepare and also to sell their
products. But they also provide business development resources and the training to give
them just that extra leg up to become profitable long-term businesses. While these two (2)
projects can more than individually meet the needs of these industries, there are a lot of
efficiencies that can be accomplished if they are co-located under one (1) roof, potentially
here in town in Lihu`e. As we explore the Food Hub concept that emerged, the process of
our project consultants exploring various locations for these projects, the possibility of using
a portion of the former Big Save building here in the Pi`ikoi Complex came up. When we
heard that the County also wanted to include a Kauai Made and Kauai Grown, the
branding programs, a retail center for those products and also the idea of a produce
handling and processing center. When all of these ideas came up, our consultants and the
community of folks that we work with, they really no pun intended, they saw a recipe for
success here. Our consultants have been exploring how all four (4) of those components
could align with what was already in Big Save, a butcher. Just for clarification, not a
slaughtering area, but butcher area for meat processing. A commercial kitchen, produce
washing and handling area, and of course, a retail area, all former functions that were
already in the building. But over and above what that supermarket had provided, this
Food Hub is really about buying and supporting local. It is going to provide facilities and
business training to help our local producers increase not only their production levels, but
really develop a larger market for their products. It is going to sell local products to
residents and visitors alike because of its central location here in Lihu`e. Also, as a matter
of fact, we had an exhibit table on April 13th at the Lihu`e Community Plan Update event
that was right here in the County buildings. The folks who had come by, we received only
positive feedback from a lot of people who looked at this kind of idea and saw the different
sectors of the agricultural community, that it could serve, seeing it centrally located here.
They signed up to learn more and they offered to provide their support when needed so that
what folks like yourselves, like the Council, can hear some of the input from our community
on that support. The Food Hub, revolutionary, in terms of what it can do for Kaua`i. But it
is also a proven concept that is already found around the Nation and that is found in
documents from the United States Department of Agriculture (USDA) as well as a number
of very successful Food Hubs that are already in existence. This is an unprecedented time
when a lot of stars are aligned and we see the support, the partnerships, the collaborations
that are here in our agriculture community make this a success. I hope we can work with
you too, to make it a reality. So, thank you very much for your time.
Chair Furfaro: Questions for Susan? Councilmember Yukimura.
Ms. Yukimura: Hi Susan.
Ms. Tai Kaneko: Hi.
Ms. Yukimura: I fully support the ideas and I was privileged to
go on that tour in Honolulu of the sites. I am very impressed with the consultants who
have reported out to the Council. So, we have been able to see the quality of their work
and hear them answer our questions. I am really pleased with the consultant process and
want to thank Kauai Economic Development Board (KEDB) for finding the consultants and
then managing them and overseeing that contract with them.
Ms. Tai Kaneko: Thank you.
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Ms. Yukimura: I have a lot of questions about the site. I guess
my question is, how much of a search did you do for other potential facilities in the Lihu`e
area?
Ms. Tai Kaneko: Both of our consultants, Joel Huseby and Chuck
Wolfe, who many of you already met in their previous presentations, they met with a
number of real estate developers. They met with a number of Realtors. They met with a
number — for Chuck Wolfe who did the Commercial Kitchen Business Incubation Program,
he met with a number of different institutions like churches and restaurants, places that
had certified kitchens. One of his findings is that a lot of these existing kitchens are not in
a position to rent to the general public. Joel had also met with a number of different places,
a number of private landowners as well as other local and State landowners to check out
various sites and locations. In the process of their looking at things when the possibility of
using an efficient portion of the Big Save location came up, all of these things just kind of
aligned into shared resources and shared facilities that made the project, logically, seems
more viable.
Ms. Yukimura: So, on the commercial kitchen, because my
knowledge of the project stops with the last briefing we got.
Ms. Tai Kaneko: Sure.
Ms. Yukimura: At that point, it was we have enough commercial
kitchens and I thought it was, we are going to support and enable these smaller kitchens
maybe with how to rent out and there was not really a need for commercial kitchens
because there were so many. That was the tentative conclusion I remember from the
report out which was about a year ago, no in maybe about three (3) months ago?
Ms. Tai Kaneko: Just about a year ago.
Ms. Yukimura: A year ago?
Ms. Tai Kaneko: That is correct. What Chuck Wolfe found was
that there were a number of existing underutilized commercial kitchens and that it was
primarily focused on. If you remember the full thrust of that program, was three (3)
locations, one (1) on the North Shore, one (1) on the West Side, and one (1) centrally here in
Lihu`e to be more convenient. But it was definitely not focused on spending a lot of money
in creating new commercial kitchens.
Ms. Yukimura: Do we have a conclusion to the report that we
heard a year ago, like an update that we can read or have a report out so we can see where
it now is?
Ms. Tai Kaneko: Yes, certainly. I believe Chuck had done his
presentation, I think in late May, and that was on the feasibility side. Both consultants are
still in the process of finishing their full business plans and they will definitely give you a
presentation and also a copy of the report for your review.
Ms. Yukimura: Can we see this before the Budget
Decision-Making?
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Ms. Tai Kaneko: I can definitely check in with them and see
where they are at — even if they can produce an abridged or executive summary so you can
see their findings to date.
Ms. Yukimura: Right. This thing has clearly evolved and in very
a nice, synergistic way. If the best scenario is now a combined services of sorts, do you have
a list of criteria for the best locations? I mean, when you were looking for a location and
now it is a combined location, how much square footage? What kind of parking? What
were the key things you were looking for a location? Long-term, how long do you need the
place for?
Ms. Tai Kaneko: I can definitely get that information from our
consultants. They looked at a variety of criteria, especially because each of them have
created similar facilities in their own previous work. They have a lot of that criteria
already established that they use as a foundation and tailored it to Kaua`i. I will get that
for you.
Ms. Yukimura: But now it is a combined scenario. Have they
gotten together or have you folks pulled both reports together for a criteria of a place you
are looking for a combined facility?
Ms. Tai Kaneko: Definitely. Joel and Chuck have been working
very closely together when the idea of co-location started even with some earlier facilities
that we looked at. Definitely, they have a lot of data that right now is tentative because
they have not finished their full business plans. But I can ask them to put together
something that will give a clearer vision of how they evaluated this.
Ms. Yukimura: The square footage being looked for is how many
square feet total?
Ms. Tai Kaneko: They had originally started with just about seven
thousand (7,000) to eight thousand (8,000) square feet.
Ms. Yukimura: Total?
Ms. Tai Kaneko: Total. Then I believe there have been some
discussions of possibly add something additional square footage and so they are now
working as much as they can because they are not architects and they are not formally
trained in creating all of the specs needed. They are trying to accommodate too into the
actual facilities and also the shared facilities like storage, office space, and meeting space.
Ms. Yukimura: Right. Then the tenure that they are looking for,
how many years? What kind of length?
Ms. Tai Kaneko: I know it is long-term. But if it is okay, I have to
check that with them and report back to you.
Ms. Yukimura: Okay. How is it that the Big Save site is a
perfect site or a very good site if you are not sure what the tenure is that you are looking for
or has there been assurances from the County for the tenure that you need?
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Ms. Tai Kaneko: I believe, and I apologize, I do have to defer to
our consultants because they really know the nuts and bolts of the project. The tenure will
be long-term because I know they planned it in such a way that it does not make sense to
invest a lot of money on the front end if it is only going to be a very short-term project.
Ms. Yukimura: Right.
Ms. Tai Kaneko: The centrality of the location makes it ideal for a
long-term project as well.
Ms. Yukimura: As long as you can have that space for a long
term.
Ms. Tai Kaneko: Yes, as long as it is available, that is true.
Ms. Yukimura: So, you do not know how much is needed and we
do not have assurances from County that the space is going available for that term?
Ms. Tai Kaneko: I would have to check into that and get back to
you.
Ms. Yukimura: Okay, alright. Thank you.
Ms. Tai Kaneko: I apologize I do not have that now.
Ms. Yukimura: Thank you.
Chair Furfaro: I will now recognize Vice Chair Nakamura and
then Mr. Rapozo. Did you want to add onto that? Okay, you have the floor.
Ms. Nakamura: I just wanted to follow-up because you are right,
there are some synergies that came out of the process as these business plans we are being
formulated, as each consultant was looking at different sets of site selection criteria and
then it all kind of merged together at that old disinfestations site and then it kind of got
moved over to this site. But there are some gaps in this whole process and that is that
because we, the County, funded Feasibility Studies for the Multi-Species Processing
Facility and for the Commercial Kitchen Incubation Program, we did not fund a business
plan or a feasibility site for this combined Food Hub concept that includes this retail piece
and the food produce.
Ms. Tai Kaneko: Produce handling.
Ms. Nakamura: Handling and processing. It did, in the
g p g. process
expand in its scope which again, turns out to be a good thing. But then we do not have
really the analysis done. That is the gap. I think that is why the Farm Bureau went out
for additional funding from State to see if they could help us pull the different pieces
together. Now, I think that is one of the gaps right now, would you confirm that?
Ms. Tai Kaneko: Correct. The funding that was requested from
the State was a big portion of the amount was for an Architectural Design Build to fully
understand the space, the utilization of the space, and then the remaining amounts were to
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do Feasibility Studies and plans on the Kaua`i Made / Kaua`i Grown retail center and the
produce handling and processing center.
Ms. Yukimura: Well, it that...
Chair Furfaro: Excuse me, you do not have the floor.
Ms. Yukimura: Oh, sorry.
Chair Furfaro: Will you continue?
Ms. Nakamura: I am done.
Chair Furfaro: I am going to recognize...
Ms. Yukimura: A follow-up please.
Chair Furfaro: Councilmember Yukimura on the follow-up, then
I am going to Mr. Rapozo, and then to Mr. Hooser. You have the floor JoAnn.
Ms. Yukimura: If there is a missing piece and we do not know
yet exactly how much space or what, what I am concerned about is that we have not done
this step and yet we are deciding already where it is going to be. I would not mind doing
another step. But I am really concerned that the moneys would just go to this site on an
assumption which leaves out other possibilities. Not knowing what the criteria are, it is
hard for me to speak about this. Tenure is one of my concerns because the County has —
the Administration have not yet told us what our space needs will be into the future. I do
not want to get either party into a bind where we need the space and we have to go and
rent outside because we have committed to this project prematurely as it would be if we did
not know what our space needs would be.
Ms. Tai Kaneko: Sure.
Ms. Yukimura: Thank you.
Chair Furfaro: Mr. Rapozo, you have the floor.
Mr. Rapozo: Thank you, Mr. Chair, and thank you for
testifying today. I sort of remember Matilda Yoshioka (Mattie) over here during the
presentation saying that the —is Mattie here?
Ms. Tai Kaneko: No, she is not.
Mr. Rapozo: But I think it was on the PowerPoint that the
Federal funding that they were going to seek was contingent on a very long-term
agreement. My memory is not very good. But I am remembering twenty (20) years. That
is what I thought she said. It was not go to be quick and I wanted to just clarify that. I
could be wrong with the twenty (20). It is either twelve (12) or twenty (20). But it is one of
the two (2) and I am thinking it is twenty (20) to comply or to qualify for funding.
Ms. Tai Kaneko: I believe, if my memory serves me, I believe she
was referring to Economic Development Administration (EDA) funding.
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Mr. Rapozo: Right.
Ms. Tai Kaneko: And often times that is anywhere between fifteen
(15) to twenty (20) years.
Mr. Rapozo: I believe it was twenty (20). If you think fifteen
(15) to twenty (20), I think twelve (12) to twenty (20), let us go to twenty (20) for this
discussion anyway, twenty (20) years. I am not sure when the consultants came down and
tried to look at areas, possible sites. I do not know if they have taken into account what the
planned use for this site was originally. Basically, it was to expand the County. I think— I
was not here at the time, but JoAnn was probably here when the County purchased — I am
not saying that. I think you were here. Were you not the Mayor or the Governor or
something at that time?
Ms. Yukimura: No, no. We were on the Council and Ron Kouchi
was on it. Pat Griffin came and laid out the version.
Mr. Rapozo: That is before I was born. But that was the
whole plan and I remember having enough discussions here, since I have been here, that
that was the plan. We were going to buy this private property and it would become the
future County buildings. I am not sure if the consultants were aware of that. I know one
thing, that we have heard from more than one (1) Department Head during this budget
process, that they do not have space, that they are confined. So, that is a concern. Twenty
(20) y ears, basically what we are saying is, we have limited the expansion or basically
taken away any opportunities to expand the County Offices that are very much needed
when you look at the Planning Department and the Department of Public Works and so
forth. We basically take that away for twenty (20) years minimum and you are not going to
remove that facility, which would force the County to be out renting space which goes
totally against the original intent of purchasing that building. I do not want to burst your
bubble. I do not want to be the bearer of bad news, but I just have to be real here and say, I
do not know if that site is the proper site because we here, and I know a lot of Department
Heads will not come up and tell us we need space. But some have. Basically, their services
to the public are being restricted because they simply cannot, they do not have the room.
We still have not seen the results of the Space Study. I do not believe we have seen that
yet. I am concerned that the Space Study will be presented to us with a big chunk of that
space reserved for a few decades, leaving very little space for our County operations which I
think is a challenge and I struggle with that. I just wanted to let you know.
Ms. Tai Kaneko: Thank you. I can definitely address the first part
of your comment which is we made a point of having both of our consultants look at Lihu`e
Town Core Urban Plan. We wanted to make sure that they were aware of the long-term
vision for this core area. We also asked them to look at the Civic Center Plan as well. So,
we did want to make them cognizant of that and respectful of that.
Chair Furfaro: I have Mr. Hooser, then Vice Chair Nakamura,
and then Mr. Kagawa. But before I do that, we have a tape change. Five (5) minutes,
please remain on the floor or close to the chambers.
There being no objections, the Committee recessed at 3:17 p.m.
There being no objections, the Committee reconvened at 4:58 p.m., and proceeded as
follows:
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Chair Furfaro: Okay, we are back from the tape change.
Mr. Hooser, you have the floor for a follow-up.
Mr. Hooser: Follow-up. Good afternoon. It sounds like a very
exciting idea and all I can think of is, I hope that there is fresh espresso and maybe a little
restaurant, little foods attached to it within walking distance of my own little corner of the
world over here. But that being aside, I share some of the concerns about the space and my
bigger concern, and maybe you can address this, is who is responsible for the success of the
enterprise?
Ms. Tai Kaneko: Currently, I can speak more accurately probably
for the Multi-Species Processing Facility and the Commercial Kitchen Business Incubator
because we have business plans. Currently...
Mr. Hooser: Could you speak up just a little bit?
Ms. Tai Kaneko: Oh, I could speak to the Multi-Species Processing
Facility and Commercial Kitchen Business Incubator Program just because those are the
ones that we have business plans actively being developed. For those two (2), we have the
managing structures will be for the meat processing side and it will only be meat processing
located potentially in this location, not any slaughtering which I know was part of the
concerns of some other folks. So, that will be run by an organization...
Mr. Hooser: We would not like the sound of animals from
across the street.
Ms. Tai Kaneko: No, you would not want mooing in the
neighborhood. But there will be a Kaua`i Meat Processing Association (KMPA) and that is
what is being drafted in the business plan to be the managing organization.
Mr. Hooser: Does that exist now?
Ms. Tai Kaneko: Our consultant is actually working — it does not
exist right now. The consultants are working on articles of incorporation, the bylaws. So,
he is currently forming it right now.
Mr. Hooser: They would manage the meat processing part?
Ms. Tai Kaneko: Yes.
Mr. Hooser: Would that be a third of the facility of the space
or would that be half?
Ms. Tai Kaneko: Currently, and I apologize I do not have the
tentative floor plan that they drafted up. But that will probably be, I believe, a little over
and I apologize if this is actually incorrect. But I believe it is about two thousand (2,000) to
two thousand five hundred (2,500) square feet.
Mr. Hooser: Of seven thousand (7,000)?
Ms. Tai Kaneko: Well, currently they are working with a bigger
number because it was suggested that there might potentially be more space.
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Mr. Hooser: Because I do not think I have seen a plan or a
floor plan. I have had some conversations like this. But I have not really seen...
Ms.Yukimura: He was not at the briefing.
Mr. Hooser: Yes, I was not at the briefing for some reason.
Ms. Tai Kaneko: I believe we can work with George and OED to
give you a more detailed briefing.
Mr. Hooser: The meat side, it that a third of the operation or
is it half of the operation?
Ms. Tai Kaneko: I would say probably a quarter (1/4) to a third
(1/3).
Mr. Hooser: Who would manage the other three quarters (3/4)
or two thirds (2/3)?
Ms. Tai Kaneko: For the Commercial Kitchen Business Incubator,
right now to-date the consultant has outlined for kind of like an Executive Director or a
Manager for that facility. But of course, that entire project is again three (3) locations. So,
it will be that same Executive Director that will manage all three (3) facilities. But they
will be in charge of ensuring operations, but also that the financial goals are being met.
Mr. Hooser: Who would they work for? Who would be the
employer? Who would be the organization?
Ms. Tai Kaneko: They will be their individual entities. It is not as
though there is yet another third party organization employing them. They are actually
running these individual entities. But all under the umbrella of what is called the Food
Hub or Food Production Center.
Mr. Hooser: But the Executive Director, I understand that
that is an individual getting things done. Who writes their paycheck? Is it County? Is it
the meat processing guys? Is it the Farm Bureau? Is it KEDB? Who is in charge? What
organization responsible...
GEORGE K. COSTA, Director of Economic Development: We would be
looking at a third party to operate the whole facility. It would not be the County. But
obviously, the Office of Economic Development—because this is a project that we believe in.
Obviously, we would want to ensure the success of the project. So, we would be working
hand in hand with the entities that are managing the facility. As far as the floor space, if
you can envision the Big Save location when you walked in the front door off to the left was
the produce, we are looking at exactly that same footprint for produce. When you walk
clown left side towards the rear, that was the meat cases and the back was the commercial
kitchen, was the meat processing. I guess the framework or the infrastructure is still there
and we are looking at just upgrading that current facility.
Mr. Hooser: Thank you. My main question is who is
responsible for making it happen and right now, it would still be an unidentified third
party?
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Mr. Costa: That is correct.
Ms. Tai Kaneko: Right now, because they are projects that are
being overseen by George's Office and by our Office as we work with our consultants, we are
overseeing the development of the projects. We are also working with other community
organizations like the Farm Bureau, the Kaua`i Cattlemen's Association, and Small
Business Development Center. But we are going to have their input into it in the
development phase of the projects. When they actually get into operation, again, at least
for the first two (2) projects we mentioned, it is the Meat Producers Association and the
Executive Director that oversees the operational and financial responsibilities
Mr. Hooser: My point is somebody has to sign the lease,
somebody has to order materials, and somebody has to be at-risk financially. At the end of
the day, and I think going through the budget is not a great time for this project in some
respect because there is not a lot of confidence in the County's ability to manage businesses.
I think the businesses — that there is a lot of questions right now and a lot of money that
may not be being spent or managed properly. So, it just begs the question, well if we cannot
do this right, what makes you think we can do this right? Providing space, subsidizing
space, I think is relatively easy if the time frame is right. So, space on a short-term basis
certainly would be easy to be financially responsible because in my experience, business by
committee does not work. You need a managing entrepreneur with some skin in the game,
somebody with something to risk and who is committed to making it happen. Do you have
that person?
Ms. Tai Kaneko: I definitely agree with those comments and I am
going to refer back to Council Vice Chair's comments that there is not a business plan or a
Feasibility Study done on the entire Food Hub yet. We actually do not have the answers
and I apologize. We do not have the answers for who is going to manage the entire Food
Hub because that work has not been done yet. But of course, those are very important
questions that we definitely want to make sure are addressed and any properly done
business plan.
Chair Furfaro: I am going to stop you there.
Mr. Hooser: Okay, thank you.
Chair Furfaro: No. I have let this go too far. George, is this a
new CIP item?
Mr. Costa: No, it is a current one.
Chair Furfaro: It is a current one. The budget today is about
the new CIPs. Now, Mr. Hooser and everybody around the table, we have questions. Those
questions deals with what is the involvement with the County Engineer? Where are we at
on the space planning, if there is an appropriate allocation? Get a clear definition this is
not a slaughterhouse per se. This is what is referred to as "compact portioning." It has a
food court and so forth. Is it going to serve food? That is not today's agenda. What I would
like from you, George, is to write me a request so we can discuss, in detail, the moneys that
we have allocated so far for this project. I am going ask, George, that all of the people that
have some involvement in this communication are aware that this is going to be a new item
on the agenda, as a new posting. Part of this, George, I think started yesterday and I am
sure there is an opportunity to get some clarity here. You were here talking to us in a
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Budget Session about some of the things that are going on with ongoing funds that we,
whether it was the strategy for the golf course or not. But today's meeting is about what is
reflected in the current budget going forward. I think real clear understanding of what we
are going to get out of the amount that we paid for is an ongoing topic in front of the
Council. As Mr. Hooser has pointed out, everybody knows what a camel is, but some have
two (2) humps, some have one (1). It is usually an animal that was formulated by
Committee that is questionable. We do not have that kind of consistency right now. But
that is not what is posted for today. Today is posted for the new budget items. So, when
would you be prepared to have something on the agenda that we can have some in depth
discussion? Could you give me an idea, covering all of the subjects brought up today,
starting with are we competing with ourselves for the same space? Who would be in the
business plan? Who would ultimately be responsible for paying us some lease rent? Is it
the Cattlemen's Association? But that is not what today's discussion is about. Today's
discussion is about the new budgeted items. We have an hour and I think I want to touch
on energy again today and so forth. But can I share with you folks an urgent request to ask
me to post something on the agenda, so we can be clear. Mr. Hooser.
Mr. Hooser: Yes. I thought there was a couple of items on the
handout that related to this.
Chair Furfaro: I am going to me tell you, that is their handout.
They are not—you are not in concert with today's agenda. Your handout says this. That is
about last year's money. We are posting something that is telling us today,the rest of the
your CIP, your new CIP items, your new strategies in Economic Development. I mean this
was the problem that we had to reschedule this yesterday. This is what you submitted to
us. It is a good start. I urgently want to have some discussion about the money we spent
on this plan in the current year. But today is about going forward.
Mr. Costa: Okay. Thank you.
Chair Furfaro: Just because you put it in your plan, does not
mean we all agree with what the agenda item is. The money for what we are talking about
was done from last year. I did not ask her to continue discussion on the items. You folks
have been asking her questions. I am fine with that. But I want to make sure there is
much more to cover today. We have an entire —we have energy, we have the CIP Manager
here to talk about the new items.
Ms. Yukimura: And Mr. Chair?
Chair Furfaro: No, I am going to yield to you and Mr. Hooser.
Mr. Hooser: I am done.
Chair Furfaro: You can continue this discussion.
Ms. Yukimura: Chair, perhaps we could dismiss Susan if we do
not have any more questions and thank her for her testimony.
Chair Furfaro: That is exactly what I was going to do. But
people kept on raising their hands. That is not today's agenda item.
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Ms. Yukimura: Then if George could come back, we could ask
questions on his CIP Budget.
Chair Furfaro: I understand exactly how to run this meeting
and we will have him back to discuss the CIP for the current year.
Ms. Yukimura: Okay, great. Thank you.
Chair Furfaro: For the current year. Susan, do anticipate being
called back at a request from the Economic Development Chair to talk about projects we
have currently already in the funding process.
Ms. Tai Kaneko: Sure.
Chair Furfaro: Thank you very much.
Ms. Tai Kaneko: Thank you.
Ms. Yukimura: Thank you.
Chair Furfaro: George, are you and your team ready?
Mr. Costa: Yes. Hello Chair Furfaro, Vice Chair Nakamura,
and honored Councilmembers. I am here to present the remaining CIP information for the
Office of Economic Development, then after that I will go into the...
Chair Furfaro: The operational portion.
Mr. Costa: The operational portion, yes.
Chair Furfaro: George, I want to make sure you understand, I
am putting the burden on you to get all of the facts extracted on projects so that we can
have some healthy discussion.
Mr. Costa: Yes.
Chair Furfaro: Okay.
Mr. Costa: For clarification, we started yesterday yesterda on the CIP
Budget. We covered the Kilauea Agriculture Park which will be carried forward to next
fiscal year and that was four hundred thirteen thousand four hundred seven dollars
($413,407). We had a discussion on that. Then we went into the discussion of Alternative
Energy Project, which was eight hundred forty-nine thousand seventy-seven dollars
($849,077) and we had a discussion on that.
Chair Furfaro: Excuse me, on that item were your two (2)
energy proficient's, were they finished with their testimony yesterday?
Mr. Costa: Yes.
Chair Furfaro: Go ahead.
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Mr. Costa: Then because it is currently in the budget, I
thought I was supposed to give an update. But of the Comprehensive Economic
Development Strategy (CEDS) projects that I talked about yesterday, there was a total of
four hundred eighty-eight thousand five hundred dollars ($488,500) of numerous projects
including some of the ones that we just got through discussing. Three (3) projects on that
list will not be done this year. One is the Golf Course Strategic Plan / Business Plan for
seventy thousand dollars ($70,000). The other one is the Sustainable Technologies and that
is the recycling, looking for business opportunities from recycling materials. That was sixty
thousand dollars ($60,000). Then there was an adjustment on the Arts & Culture cluster,
looking at a Multi-Purpose Facility and that was seventy-two thousand dollars ($72,000)
and that was repurposed to an Arts & Culture capacity building and the original
seventy-two thousand dollars ($72,000) was reduced to twenty-five thousand dollars
($25,000). Basically, what you have is a balance from the original four hundred
eighty-eight thousand five hundred dollars ($488,500), a remaining balancing of one
hundred seventy-seven thousand dollars ($177,000) that will be carried over to next fiscal
year. My report today is to advise the Council and the Chair that that one hundred
seventy-seven thousand dollars ($177,000), its purpose is intended to support initiatives for
the combination of Multi-Species Processing Facility and the Commercial Kitchen Business
Incubator, otherwise being referred to as the Food Hub. So, that is basically it on the
Capital Improvement Projects besides as I mentioned, the two (2) that we covered
yesterday, Kilauea Agriculture Park and Alternative Energy. The only other remaining
project is the Food Hub for one hundred seventy-seven thousand dollars ($177,000) for next
year.
There being no objections, Chair Furfaro, the presiding officer relinquished
Chairmanship to Mr. Rapozo.
Mr. Rapozo: Thank you, Mr. Costa. Any questions?
Councilmember Yukimura.
Ms. Yukimura: So, Susan mentioned that the — and I want to
acknowledge in the beginning a disadvantage in not having had a report or update on the
commercial kitchen. But she mentioned that now there will be three (3) commercial
kitchens, one (1) on the West Side, one (1) in Lihu`e, and one (1) in North Shore. I guess my
assumption was that the other two (2) kitchens would be existing and run by other places
like Waipa, I thought would be the commercial kitchen. But apparently we are doing
another one and that is going to be under — and I guess I want to repeat Councilmember
Hooser's question. Under whose sponsorship or who is going to be responsible for the
running of these kitchens?
Mr. Costa: , Well, what we are looking at from the
Commercial Kitchen Business Incubator perspective, when our consultants came in as
Susan mentioned, they looked island-wide at the various commercial kitchen entities. In
the original Feasibility Study that was presented last year, they specifically pointed out
various facilities and I guess the feedback that we got from the operators, whether they
were churches, whether they are schools, whether they were restaurants. Just a few
commercial kitchen operations came forward and said we would be willing to rent or lease
our facility to the general public. That is part of the plan, is seeing what facilities are there
available on the island and part of the plan is to create a managing entity that would work
with these independent facilities and be a managing agent to coordinate when these
facilities can be used for the public.
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Ms. Yukimura: But a managing agent under whose sponsorship?
The County is going to run this?
Mr. Costa: No, this would be a third party entity. Again,
these are economic opportunities that we are looking at within the community and just
trying to facilitate those entities or those possibilities.
Ms. Yukimura: The Council was just requested to support a
Grant-In-Aid request from Waipa Foundation for one million seven hundred thousand
dollars ($1,700,000) in part for a commercial kitchen on the North Shore. We are going to
have that North Shore commercial kitchen and then another North Shore commercial
kitchen that we are going to sponsor and fund and operate as well?
Mr. Costa: We are not looking at County funding to either
build...
Ms. Yukimura: But you are going to do another commercial
kitchen on the North Shore?
Mr. Costa: No. We are looking at existing facilities and one
(1) possibility...
Ms. Yukimura: Obviously, I am not updated on the plan. This is
not a done deal. You are asking for one hundred seventy-seven thousand dollars ($177,000)
to move this project forward. Do you know what the breakdown of one hundred
seventy-seven thousand dollars ($177,000) and will it be used for further consultant study?
Mr. Costa: Most of it would be, as Susan mentioned, looking
at the Kaua`i Grown / Kaua`i Made retail section of what would be the Food Hub to look at
that, and then the umbrella organization that would manage the entire facility.
Ms. Yukimura: So, is there a study of the Kaua`i products
experience that has happened over the last twenty (20) years?
Mr. Costa: As far as Kaua`i Made or just Kaua`i products in
general?
Ms. Yukimura: There was a Kaua`i Products Council. I think I
may have started it. Then Wayne Katayama was Chair and then Gary, Councilmember
Hooser was Chair. So, they had a storefront at the Kukui Grove Shopping Center and it did
not last. There is a question about when you — and it could be very different because this
whole nature of Kaua`i products has been taken to another level. I really want to
acknowledge that. But still, it is a limited portfolio of products. So, you almost need an
economic feasibility before you start designing an architectural plan for a place, unless the
study that you have done, that we have not yet received a report on, has answers to some of
these questions that are being raised in this process.
Mr. Costa: Right.
Ms. Yukimura: So if so, we need to have the report on the study,
before we are asked to spend one hundred seventy-seven thousand dollars ($177,000) of
taxpayers' money. I am afraid it is going to be used for a presumption that is it going to be
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there at the Big Save when we have not gotten all of the other pieces of information that
we, as Board of Directors of the property, need to have in order to make commitments. But
the Mayor may make a commitment given all of this money and we are going to spend
money towards that assumption, I am not comfortable with that.
Mr. Costa: Well, like my plan, it starts with a vision and in
a perfect world, everything would fall into place. As I mentioned, we already have a
Feasibility Study on the Commercial Kitchen Business Incubator, on the Multi-Species
Processing Facility we were working on in separate paths. Then with the idea of maybe
that opportunity of utilizing the Big Save location, then all of a sudden, here are these
different projects that we are working on ,may be able to be housed in one (1) facility that
used to house it. I am sure if the Kawakami family had not sold their business we would be
going over to Big Save right now. Basically, if you can envision a Big Save without frozen
foods and canned goods,is what we are trying to create.
Ms. Yukimura: And that is my question, whether Big Save
without frozen foods and canned goods can survive economically? I am concerned if you put
it in a Government office space or a Government space that there will be political pressures
to keep it there. It will not have to stand on its own two (2) feet as a business and we will
all be in a very bad situation because we will not be achieving our goal of really launching a
business that is going to stand on its own feet, which is our end goal.
Mr. Costa: Right.
Mr. Rapozo: Councilmember, Councilmember Nakamura has
a question.
Ms. Yukimura: Thank you.
Mr. Rapozo: Councilmember Nakamura.
Ms. Nakamura: Just a follow-up on your point there. I think we
are kind of at this place where there are a lot of things in play that we do not have clear
direction. For one thing, the consultant business plans that we are contracted under
current funding, they are supposed to completed their plans by the end of the fiscal year in
June and present to the Council. We really need to get up-to-date on what the current
thinking is on each of the different strategies. There is also this State Grant-In-Aid in play
that we will not know until July.
Ms. Yukimura: Tonight.
Ms. Nakamura: Tonight, excuse me. Whether is in or out of the
budget. We know that this concept of the Food Hub has potential. But there has not been a
Financial Feasibility Plan or business plan or Site Selection Study done on the combined
concepts. We have done different components and there seems to be some synergy there,
but there is some missing pieces. Now, I think that as long as we are in dialogue as we
move along, we can work these out. But we are not going to have any answers today and
we probably may not have all of the answers until the different studies are complete. I
think what we may want to consider is a place holder of some fund because the other thing
is when the studies are complete, we do not want them to sit for a year until the next
budget and then say now we are going to follow-up and let one (1) year pass. I like the idea
of reprogramming the funds and putting a placeholder, but also having some checks along
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the way in how the funds are going to be used and sort of get some agreement that it
makes sense moving forward once we have the consultant reports completed. That is just
my suggestion on how we proceed.
Mr. Costa: Right, and that is a good observation because
that is exactly the place I was in last year, where we were in the midst of our Feasibility
Study, yet we were in budget deliberations. I did not know how much or what to put
moneys for, but I wanted to have some moneys available. As we get closer to the end of
budgets and hopefully the end of the Feasibility Study, we had more information and that
is where we are right now. I know just a few months ago when the Food Hub concept came
out, obviously, we did not have all the answers, but the idea was there. So, we just felt it
was only proper to come to the Council, at least share what we had. But by all means, it is
in the works and we are working diligently to get more information. As Chair Furfaro
mentioned, we need to huddle up and get our consultants together. I know they are not
completed yet, but whatever information that they have that can help us at least to do a
presentation fairly shortly, would go a long way to helping everybody understand where we
are.
Ms. Nakamura: But, George, does that make sense, while we are
still waiting for the consultants to kind of finalize their products?
Mr. Costa: Right. That is what we did last year for this
year's budget.
Mr. Rapozo: I think that is the reason that the Chair, by the
way Chair, we are back to this issue again. I think Councilmember Yukimura said it best,
our knowledge of the project stopped with the last briefing that we had. At that briefing,
like she said earlier, the impression that I got was we had more than enough commercial
kitchens and today we are hearing that we are going to enter that market of commercial
kitchens. So, that is, I think, where the confusion is based on what we heard last and what
has been discussed between then and now. I think the briefing, the new briefing, is much
needed. Thank you, Mr. Chair and you have the gavel.
Mr. Rapozo, the presiding officer returned Chairmanship to Chair Furfaro.
Chair Furfaro: George, I just talked to our two (2) facilitators
F who have been contracted with some of this moneys and they are feeling that if you are
back on as an agenda item at the end of May, early June, with kind of an update for us, it
would be perfect for an agenda item.
Mr. Costa: Okay.
Chair Furfaro: I shared with them how really important that is
to us because even the food court process, I mean, it is too early to do anything with that.
But I have to tell you, one of the things that bothers me is when we go this far in a year and
we do not release money that was put in the budget from last year until February, it is
really tough to ask our consultants to be ready. But the agenda item now is really about
going forward with the budget.
Mr. Costa: Right.
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Chair Furfaro: I want to make sure that we understand that the
timing on the releasing of the funds is also your kuleana, too. I mean, we cannot release it
this late in the year and expect a full understanding of where we are at. That is where I am
at. Please get something for us on a Council agenda late May, early June and they, of
course, will be talking to the consultants that already indicated that they were going to
have their final piece towards the end of the year. Okay?
Mr. Costa: Okay.
Chair Furfaro: JoAnn.
Ms. Yukimura: So, of what is listed in the CIP Bill, the seventy
thousand dollars ($70,000) that is earmarked for the Modular Chill Slaughter Processing
Facilitated, how much of that is encumbered and how much,if anything is still available?
Mr. Costa: For that one, fifty-six thousand dollars ($56,000)
is encumbered and fourteen thousand dollars ($14,000) is available. Basically, eighty
percent (80%) has been encumbered for all of the CIP items and there remains twenty
percent (20%) is the balance when the final report is presented.
Ms. Yukimura: But it is still already obligated?
Mr. Costa: Yes.
Mr. Yukimura: So, technically you could remove fifty-six
thousand dollars ($56,000) and keep fourteen thousand dollars ($14,000) on the Budget
Ordinance?
Mr. Costa: Yes.
Ms. Yukimura: How much of the Beef Quality Study? Is that the
same consultant who is doing the Modular Slaughter Chill Processing Facility?
Mr. Costa: That is another consultant.
Ms. Yukimura: A different consultant?
Mr. Costa: Yes.
Ms. Yukimura: And there is a contract for that service?
Mr. Costa: Yes, eighteen thousand eight hundred dollars
($18,800) has been expended and there is four thousand seven hundred dollars ($4,700) left.
Ms. Yukimura: But that also is obligated. Now, this Feasibility
Study for the commercial kitchen.
Mr. Costa: Right.
Ms. Yukimura: That is the one that we received a report on?
Mr. Costa: Actually that is supposed to be Business Plan.
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Ms. Yukimura: That is a Business Plan?
Mr. Costa: Yes.
Ms. Yukimura: Okay. So, that money is obligated, part of it
expended?
Mr. Costa: Right, thirty-five thousand dollars ($35,000) of
which twenty-eight thousand dollars ($28,000) has been spent and there is a remaining
seven thousand dollars ($7,000).
Ms. Yukimura: Okay. So, this commercial kitchen funding
sources is the same consultant who is doing...
Mr. Costa: The commercial kitchen is also looking at
funding sources for that facility.
Ms. Yukimura: So, that is one hundred thousand dollars
($100,000) plus already on all of these and that is also obligated already?
Mr. Costa: Yes, thirty-two thousand dollars ($32,000) with
eight thousand dollars ($8,000) remaining.
Ms. Yukimura: Okay. The Science Business Plan, that is one we
received a one (1) year report or a preliminary report on?
Mr. Costa: Right.
Ms. Nakamura: The Feasibility Study.
Ms. Yukimura: The Feasibility Study? Okay.
Mr. Costa: Fifty-six thousand dollars ($56,000) has been
expend and fourteen thousand dollars ($14,000) remains.
Ms. Yukimura: The Administration is saying that the Wailua
Golf Course Strategic Plan and the Sustainable Technologies Plan as priorities are lower
than putting aside these moneys for this Food Hub and commercial kitchen?
Mr. Costa: Right. As I mentioned, when I started my
presentation yesterday focusing on Agriculture & Energy to help our economy on the island
become more self-sustaining and then obviously, we still value the Sports & Recreation,
Arts & Culture clusters. But the top two (2) that take priority is Agriculture & Energy.
Ms. Yukimura: The Sustainable Technologies, I would like to
request—that is unspent, sixty thousand dollars ($60,000) is unspent?
Mr. Costa: That is correct.
Ms. Yukimura: It was not contracted for?
Mr. Costa: That is correct.
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Mr. Yukimura: But did we spend any money through Kaua`i
Planning &Action Alliance (KPAA) for Sustainable Technologies previous to that?
Mr. Costa: Prior to that, was assisting with the Sustainable
Action Team and the Green Team, working with Glenn Sato on sustainable practices.
Ms. Yukimura: Can we get a report on that? I do not think we
have ever gotten a report on that.
Mr. Costa: Okay.
Ms. Yukimura: Have we? I forget how much money did we
spend on that?
Mr. Costa: I believe Diane has presented a report. But we
can get a report to you.
Ms. Yukimura: Oh, we did get a report. Excuse me, if I am
mistaken. You did give a report to us?
Ms. Nakamura: Diane should answer your question.
Chair Furfaro: Diane, would you like to come up for a moment,
please.
Ms. Yukimura: Maybe I was gone.
Chair Furfaro: Diane, did you hear the question?
DIANE ZACHARY, President and CEO of Kaua`i Planning &Action Alliance:
Yes, I did. We have been working with County Departments in the development of
an Internal Operation Sustainability and Climate Action Plan, that draft is finished. The
document is at a point where we are doing some final edits to it. It will go back to Glenn
Sato to actually implement within the County. So, Glenn I believe alluded to it in his
presentation. How that particular project is reported to you is really up to George and to
Glenn.
Ms. Yukimura: Okay. How much money did we spend on that?
Ms. Zachary: It was fourteen thousand four hundred dollars
($14,400).
Ms. Yukimura: Okay, thank you. I do not know if in writing or
in presentation we should get some kind of report on how those moneys were spent and
what they were used for? Thank you very much. George, the other part of the sixty
thousand dollars ($60,000)...
Chair Furfaro: Excuse me, may I interrupt?
Ms. Yukimura: Sure.
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Chair Furfaro: This is for George and this is for the
Administration, I have had this discussion with the Auditor, okay? Please determine for
us an operating standard that says this report is a draft and when we expect the final. We
get a draft report. We get a draft report and I want to make sure all of the Councilmembers
and the staff understands, we are expecting the final, just like we are expecting the final
audit. It is a draft and when they close out particular items in that piece, then it is final.
So, we have got to make sure that we have that understanding. Steve, can you
acknowledge for me something that we can create for the County on what is a draft
definition on something and what is a "final?" Could you? We need to make sure so we are
all copacetic here.
Mr. Costa: Just for clarification, Chair, most of the studies
done last year, the final presentations were done before the Council. The one that Diane is
referring to, she was working with Glenn and that was just recently completed.
Chair Furfaro: As a draft?
Mr. Costa: Right now I believe the draft, yes, and that is
what Glenn is working on.
Chair Furfaro: What I am saying is, and then we expect you and
Glenn to come to us when it is a final report.
Mr. Costa: Right.
Chair Furfaro: Thank you very much for the time. You have the
floor, JoAnn.
Ms. Yukimura: So on the Sustainable Technologies Project, as
part of Solid Waste, I know we have discussed some r&d that could promote the recycling of
products and one that came to mind and I am not sure if that was — I guess I can read it
here — secure professional services to explore. This is what you are proposing to cut out.
Secure professional services to explore current opportunities for creating products, jobs, and
community benefit from recycled plastic, cardboard, paper, tires, glass, metal, and other
materials. Consultant to prepare Feasibility Study to assess the economic opportunities for
Kaua`i's recyclables. Considering factors such as waste stream market, location, and
workforce.
Mr. Costa: Right.
Ms. Yukimura: I have been told for example, that if we could
find a technology that can grind recycled glass to a finer degree than present technology,
that we might be able to use the glass for golf course sand which we are now importing from
China at one hundred dollars ($100) a ton. If we could actually do that, it has incredible
economic value. I am wondering how you are balancing out these two (2), especially when I
am not clear what the one hundred seventy-seven thousand dollars ($177,000) are going to
be used for? We already expended over one hundred thousand dollars ($100,000) in this
area for Multi-Species and commercial kitchen.
Mr. Costa: Okay.
Ms. Yukimura: Do you have any response on that?
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Mr. Costa: I will provide that for you, the one hundred
seventy-seven thousand dollars ($177,000).
Ms. Yukimura: Alright. Thank you very much.
Chair Furfaro: Nadine, you have the floor.
Ms. Nakamura: I am just saying, that is a difficult task to do
based on where we are at.
Mr. Costa: Yes.
Ms. Nakamura: I think you are asking for something, JoAnn,
that we all want to see. But given where the consultants are at in their deliverables, we
are not there yet and we are not going to get there during this budget process is my
assessment.
Ms. Yukimura: But there has been a decision by the
Administration that that is more important and a higher priority than the Sustainable
Technology's one. I am just trying to understand how you are weighing that. I would feel
much more comfortable in putting it aside rather than appropriating it out without full
information.
Mr. Costa: Okay, duly noted.
Ms. Nakamura: When you say "put it aside," what do you mean?
How do you put it aside?
Ms. Yukimura: Well, we have had a category, we just generally
put it aside.
Ms. Nakamura: "Other?"
Mr. Costa: Like a placeholder?
Ms. Yukimura: Yes, and it has to be re-appropriated at the
appropriate time.
Mr. Costa:: Okay. Any other questions on CIP?
Chair Furfaro: Yes, I have some questions for you. What
projects did we defer to this budget time? I mean, do we have something with KPAA that
we got a late start on because of a release? Do we have some from Kaua`i Economic
Development (KEO)? Where are some of those items, George, that nothing has started, but
contracts released recently?
Mr. Costa: Well, as I mentioned earlier, the....
Chair Furfaro: I want to make sure our CIP Manager
understands, I guess what I am looking for is that it is in the most current CIP plan you
gave us because no action has happened.
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Mr. Costa: Well, actually that is what we have been
discussing is that the first one that was originally listed an Modular Slaughter Chill
Processing is now referred to as the Multi-Species Processing Facility.
Chair Furfaro: George, if you covered it when I went out to talk
to the Farm Bureau, that it okay. I can watch the tapes and catch it. You do not need to
revisit it.
Mr. Costa: Okay, all the projects are in place and in
progress right now.
Chair Furfaro: Okay. Do you want to continue with your report?
Mr. Costa: Yes. If there are no more questions on the CIP
Budget, I just wanted to go right into our Office of Economic Development in completing
what we have done from my section. Basically our successes and accomplishments in the
Office of Economic Development and I want to really extend our appreciation to the Mayor
and the Administration, but also to the County Council. For a little over a year we had
come before the Council and asked for another position. It started out as an Office of
Economic Development Technician and we worked with the Department of Human
Resources and Personnel and we finalized a Specialist II position which was more in
keeping with the other positions that we have in our Department. I am very pleased to
announce that was one of our accomplishments, is that we now have on staff, Melissa
Sugai who is our OED Specialist II and some of her main responsibilities are one (1), the
Kaua`i Made Program which is currently still being overseen by Beth Tokioka. But over
the next year we are going to really have Melissa take that program over. Melissa is also
responsible for being the relief person for our Secretary. In past we had no relief and
basically it was our Accountant that filled the Secretary role. So, she has those two (2)
responsibilities. Along with that, one of the initiatives that we are responsible for in the
Office of Economic Development, is the Mayor's Crime Task Force. Melissa is now taking
over being the support person who does the minutes, does the agendas, and all of that.
Initially I was doing that. Then our Secretary Edee Bandmann took over that role and now
it is in Melissa's hands. She also helps Ka`eo Bradford that you met yesterday. Ka`eo
again, as all our Specialists all work alone, so Melissa is now providing support services for
Ka`eo by helping her with here minutes, with her agendas, and any clerical work that she
needs. Another success and it is actually ongoing is — in the Office of Economic
Development, we are a small Department. But we have diverse sectors. We do a lot of
different projects, obviously, within the County. Just amongst the nine (9) of us in our
Department, we come from diverse backgrounds. Half of the staff is tenured, has been with
the County for a number of years and has a lot of experience. The other half are new, come
from the private sector, and so that combined with the fact that our long-term employee
that we had, Brenda Martin, really helped the Office of Economic Development basically
keep us together for many years and went through several Directors, passed away a few
years ago and with her, took a lot of, I guess, support services that we just took for granted.
It has taken us a couple of years to really recoup from that. I will be the first to say that
our Office...
Chair Furfaro: You need a minute, George? You are okay?
Mr. Costa: Our Office really had some challenges and I am
really pleased to say through some recommendations, we hired a company called
Performance Coaching. It is a local company and it really helped us with communication,
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with team building, and with management. I have been a Manager for almost half my
career, yet, there is always room for improvement. Over the last year, working with our
Performance Coach...
Ms. Nakamura: I am going to interrupt.
Mr. Costa: She really helped bring our teaming together.
Chair Furfaro: Excuse me, George.
Mr. Costa: Yes?
Chair Furfaro: I am going to recognize the Vice Chair for a
moment.
Mr. Costa: Okay.
Ms. Nakamura: I just wanted to say George, that this is pretty
amazing. I think this is the only time that I have heard in the entire budget presentation
that a Department hired a Performance coach to improve communications and
relationships and looking at ways to improve. I know yours is a small office, but it is
something that I hope other Managers will take a look at. How you went about procuring of
the services, what the results were, and how they can possibly use those kinds of services in
their own Departments. So, just very happy to hear that you have taken those initiatives
as a Manager of the Office of Economic Development.
Mr. Costa: Well, thank you. I have my own ego and I pride
myself in being a good Manager. But sometimes you need feedback not only from your
staff, but somebody from the outside that can really take a look. Like I say, you cannot see
the forest through the trees. So, we went through quite a bit in the last year and I am
happy to say, it is not perfect. But it made me see that there are areas that I can improve
and helped the rest of the staff come together and like I said, we have seasoned veterans in
our Department and we have new blood, Ben Sullivan. Our Performance Coach helped us,
showed us different personality traits, and we have some directs, and then we have those
that are spirited. Ben, Nalani, and Ka`eo, very spirited. Ka`eo is very direct too. It has
really helped our Department. I just want to say, and I can say we have had a lot of
accomplishments over the last year. But I must say that one is probably the most that I
am proud of in our Department. Anyway, thank you. Moving on. As you know we work
with so many organizations within the community. The Kaua`i Chamber of Commerce,
Randy Francisco, KEDB, Susan Thyme, Mattie Yoshioka, Mia Acob, Diane Zachary, Kaua`i
Planning & Action Alliance, Kaua`i Economic Opportunity, Mable Fugiuchi, John Lekavich,
Small Business Association. The list goes on and on. Within a month I probably meet with
almost everyone these organizations because as I mentioned earlier, our mission and our
goal is really to work with our business community and the community at large to
collaborate and really look for economic opportunities and be a champion to assist
companies. I know something like the Food Hub is probably not all developed yet. It may
or may not happen. We are hoping it will. But our goal is really to bring the community
together and try to help on or our island become more economically diverse and
self-sustaining. Tourism, Sue Kanoho, Kaua`i Visitors Bureau, the Hawai`i Hotel
Association, Energy, Kauai Island Utility Cooperative (KIUC), Kauai Community College,
Blue Planet Foundation & Agriculture, Kaua`i County Farm Bureau,we have many of the
Farm Bureau people here, of farming, agricultural community, Kaua`i Cattlemen's
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Association. The list goes on and on. Even Health & Wellness in the Sports & Recreation
community, all of them are equally important and we want to continue strive to help them.
As far as challenges, as I mentioned, because we are a small Department and we are tasked
with quite a few projects that I think Ben stated it best. Our band width is not that great,
yet we really try to push the envelopes on a lot of project because we truly care and want
to help our island both economically and in the community at-large. As far as
improvements, as I mentioned, we had gotten our Performance Coaching, our OED
Specialist II has helped our Department. Now getting into the upcoming initiatives, as I
mentioned our Specialist II will continue to work with our Specialist. As I mentioned,
Ka`eo with workforce. But Ben Sullivan, also as he mentioned band width and hopefully
Melissa, our Specialist II person will assist Ben in some of the projects that he wants to
engage in, that is really going to help our County and our island. I just want to mention a
few projects that you may or may not know that do not necessarily fall under any one of the
sectors. We are involved with the Hanapepe Friday Art Night and Hanapepe Town
Marketing Plan. I am actually working with Roxanne McDougall on an Economic
Development Plan for Hanapepe Town. We feel that is an important area for our island.
We also want to look at the Hanapepe Salt Pond area. Kekaha Host Community benefits,
Nalani is very involved and so is Ben with their photovoltaic projects. Feral Cat Study,
that is Bill Spitz, our Agricultural Specialist. He is working on the Feral Cat Study. Royal
Coconut Coast Association, we just worked with them getting their association launched to
help the East Side of the Kaua`i. We worked with the taro farmers on the Hanalei River
breach, on the endangered bird species. So, all of those are important projects that we are
fully engaged with.
Chair Furfaro: George, can I interrupt you just for a second?
Mr. Costa: Sure.
Chair Furfaro: I would • like your Office to follow-up on
something for us. Kaua`i makes up seventy-three percent (74%) of the State taro
production. Our taro is, in fact, a significant Hawaiian asset for our community. I want to
make sure that you have somebody tracking what is happening with the Economic Grant
for the Hanapepe taro farmers on a water repair system to the tune of about forty thousand
dollars ($40,000).
Mr. Costa: Right.
Chair Furfaro: I would like to make sure that we are keeping
close eye on that, since there is a lot of money going into agriculture through State. But the
reality, irrigation management, water systems for kalo is extremely important and I would
like to ask you to keep an eye on that, please.
Mr. Costa: Okay.
Chair Furfaro: Thank you.
Mr. Costa: That is a good point, chair. There was a great
that the Department of Labor actually had from Federal Emergency Management Agency
(FEMA) after the March floods last year. I was involved in trying to put together a project
that would not only help the Menehune Ditch system on the West Side, but also ] the taro
farmers because they sustained some damage as well. That grant because it is FEMA,
needs to be mobilized within a few months. It took me a while to mobilize that. But the
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lessons were learned and so we have better procedures in place that should that happen
again, we have our contacts with FEMA and they can mobilize those funds and we can help
those that are in need.
Chair Furfaro: Thank you, George.
Mr. Costa: As far as the meat of what I am presenting
today, the other service projects for the Office of Economic Development start with
promotional materials. As you know within our Department, any Department within the
County or even organizations on Kaua`i that are going to the mainland that are attending
conference, often come to our Department and ask for omiage, we have Kaua`i Made, Kauai
Festival material that we want to help promote Kaua`i. So, we put those together. We have
in our budget for fifteen thousand dollars ($15,000). Those are usually luggage tags,
magnet clips, pens, post-it notes, "Kaua`i Loves You" bumper stickers. We also have in our
budget commercial support. Basically, we work with Ken Stokes on providing us with
economic data and forecasts. So, we feel that is an important part of our budget ask.
Emerging industry support is fifteen thousand dollars ($15,000). That is usually our fund
where those organizations that have not gone through the formal process through Hawai`i
Tourism Association (HTA) Grants. Maybe a non-profit or a service organization has a
need that just came up within the year. That is where we do smaller grants to
organizations like that. We also have for the Kaua`i Made Program commercial support.
Basically, if you have ever attended the trade shows that we have twice a year at Kauai
Community College or at the War Memorial Convention Hall where we bring over one
hundred forty (140) Kaua`i Made vendors and we provide them an opportunity to contact
wholesalers and not only the ones on the island, but in the State and we also provided
opportunities to deal with deal the military at the exchanges. We also have another in the
Economic Development Plan implementation, we have sixty thousand dollars ($60,000) for
Kaua`i Economic Development Board. They work with our Office and that money is used to
help implement any CEDS initiatives. Susan Thai and Mia do an Energy Conference or an
Agricultural Conference and some of those initiatives are done under those funds. I also
have fifty thousand dollars ($50,000) set aside for the Multi-Species Chill and Processing
Facility. As we mentioned, besides the ones we just talked about in the CIP Budget
because we have our Business Plan ongoing right now, I set aside fifty thousand dollars
($50,000) for the Chill Processing Facility and another fifty thousand dollars ($50,000) for
the Commercial Kitchen Business Incubator.
Chair Furfaro: We have a question for you George.
Mr. Costa: Yes.
Ms. Yukimura: George, in addition, to the CIP moneys that we
just went over, you have fifty thousand dollars ($50,000) that is earmarked for funding for
design of proposed Multi-Species Chill and Processing Facility and that is in addition to the
one hundred seventy-seven thousand dollars ($177,000) that you are asking for?
Mr. Costa: Yes.
Ms. Yukimura: What is the total expenditure on the
Multi-Species Facility that you are proposing to bring from beginning to the end?
Mr. Costa: Beginning to the end, this is just for the design
phase.
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Ms. Yukimura: And you are presuming that it is going to be at
the Big Save? I am kind of confused.
Chair Furfaro: Well, he answered the question. That is where it
is at. It is for us to digest whether it stays there or not.
Mr. Costa: Right. That is what it is earmarked for.
Ms. Yukimura: You are asking, in this budget, for a total of...
Chair Furfaro: Two hundred twenty-seven thousand dollars
($227,000), if you put the two (2) together.
Mr. Costa: Right.
Ms. Yukimura: Yes, two hundred twenty-seven thousand dollars
($227,000) plus you are asking for another fifty thousand dollars ($50,000) for the
commercial kitchen, which now makes it two hundred seventy-seven thousand dollars
($277,000), right?
Mr. Costa: Right.
Ms. Yukimura: Then KEDB Economic Plan Implementation is
sixty thousand dollars ($60,000)? How is that going to be used?
Mr. Costa: I am sorry, the Economic Plan Implementation is
not for the...
Ms. Yukimura: What is it going to be for?
Mr. Costa: It is for what I just mentioned. KEDB uses that
to facilitate CEDS Project and basically like the Agricultural Business Plan that they plan
competition that they just did and the Energy Conference that they have on an annual
basis.
Ms. Yukimura: Can we get more specifics then just in terms of
what that money will be used for?
Mr. Costa: Okay.
Ms. Yukimura: Thank you.
Mr. Costa: Alright, then that concludes the other services
line items that we have in our budget. Are there any questions before we go into the
Mayor's Holo Holo 2020 Program?
Chair Furfaro: Go right into the Holo Holo 2020 plan. We are
coming short on time here, George.
Mr. Costa: In the Mayor's Holo Holo 2020 Program there are
thirty-eight (38) different initiatives and of the thirty-eight (38) , there are sixteen (16) that
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relate to or involve the Office of Economic Development. The first one is the Ke`e Beach
Shuttle Service and that is working with the Ha`ena community, State Department of Land
and Natural Resources (DLNR), State Department of Transportation, and the County
Department of Transportation. That is something that we recently have spoken with our
own Energy Coordinator who is also involved with the Department of Transportation. We
are going to combine and collaborate our energies to work on that plan on the beach Shuttle
Service. But also look at a broader North Shore Transportation Plan. Then the next item
is increase commerce in towns across the island by maintaining unique character. As I
mentioned, with Nalani and her festivals and grants, we look at various economic
opportunities whether it is festivals, helping non-profits in various communities. But more
specifically, in this case, I am working directly with the Hanapepe Economic Alliance and
Roxanne McDougall on helping Hanapepe Town this coming year. The other item is
restore and preserve cultural sites.
Chair Furfaro: We have a question for you, George.
Mr. Costa: Yes?
Ms. Yukimura: This is a total of four hundred ten thousand
dollars ($410,000), is that the grant money from HTA?
Mr. Costa: No, that is HTA grant money and that is being
used as an example as what we utilize from another source to help the Mayor's initiative,
Hobo Holo 2020 initiative.
Ms. Yukimura: So, the four hundred ten thousand dollars
($410,000) is State money?
Mr. Costa: Yes, State moneys, the HTA money.
Ms. Yukimura: Thank you very much. It is a great program.
Mr. Costa: Then we also have restore and preserve (R&P)
cultural sites. Again, current budget here, reflects the grant that the Hui Malama 0
Kaneiolouma which is the heiau in Po`ipu. So, we work with them to help restore and
preserve that cultural site. Nalani is actively involved with them in helping them seek
grant opportunities.
Ms. Yukimura: George, excuse me.
Chair Furfaro: Go ahead.
Ms. Yukimura: The eight hundred five thousand dollar
($805,000) figure you have here, is that State money or County money?
Chair Furfaro: That came through the moneys allocated through
the...
Mr. Costa; The CIP.
Chair Furfaro: No. The A&B and the Kukui`ula Development
Grant.
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Mr. Costa: Oh, absolutely. The Community Facilities
Development (CFD) Grant.
Chair Furfaro: Yes, Community Facilities Development moneys.
Ms. Yukimura: Thank you.
M. Costa: Then also, another initiative was the electric
charging stations which we did accomplish and that was through Glenn Sato. We installed
five (5) County electric charging stations along with five (5) public charging stations
throughout the County facilities. One of the ideas that Ben has is working with KIUC and
maybe looking at more of a global type of system for charging electric vehicles and charging
stations, not so much with County funds, but just as an initiative.
Ms. Yukimura: Chair?
Chair Furfaro: Go right ahead.
Ms. Yukimura: The two hundred seventy-six thousand dollars
($276,000), was that County money?
Mr. Costa: That was through the grant.
Ms. Yukimura: Federal grant. Because I am a lessor of an
electric car.
Mr. Costa: Yes.
Ms. Yukimura: I have had great difficulty using the charging
station right here because you have to call up to tell them you want to use it. Then you
have to give the credit card over the phone and then you can only use in one (1) hour
increments. If I want to just charge for half an hour, I have to pay for an hour. It does not
work from my personal experience and I hear there are free charging stations on O`ahu,
because they use advertising. Of course, their criteria is I do not know, they have some
threshold of so many customers a parking lot, that you have to have so many cars per
parking lot and so forth. I just want to give you feedback that it is not quite working from
a user's standpoint.
Mr. Costa: Okay.
BEN SULLIVAN, Economic Development Specialist IV: Thank you
Councilwoman Yukimura. We appreciate those comment. I appreciate those comments
and one (1) of the challenges for Electrical Vehicles (EV) has been and continues to be that
this is an emerging use and emerging technology. So, the systems are really still being
worked out. I noted that actually most of the chargers both on Kaua`i and on O`ahu are
offered free as a service from the entities that implement the chargers. It is not so much in
many cases a sponsorship. It is just that the energy is being given away. The reason being
in part is because there are so few users that it is not a significant loss and you can then
encourage people to start getting comfortable with how to do it, at the same time you can
encourage those that maintain the systems to learn how to account for and manage and you
can simultaneously improve them. But the state of the charging infrastructure is just in
infancy. We certainly share your frustrations with regards to the technology, but I think
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Glenn probably speak better than I can. The timing of the grant was such that we had to
use the money, we had to select a vendor. I do not know. But I recall speaking to Glenn, I
think he said the one we selected was the only one that responded. So, in fact, it spend the
mone. put the chargers in, learn from the experience.erience. That is exactly what we are doing.
Y, p g � p Y g
So, we are happy with that. We believe there is plenty of room for improvement. But, in
fact, we feel it was exactly the right thing to do given the opportunity as it is presented
itself. I guess next evolution would be to look at whether we are ready to allocate
additional funding to improve the charging stations and that is a function — it is chicken
and egg because there are only so many users of EVs, as you are one of the very small
number of people. But it is an exciting opportunity nonetheless. I do not know if there are
specific questions to respond to.
Ms. Yukimura: No, that is a good response, I guess. Do you
track how much it is used? Do we get information like that? Do you solicit user feedback?
I mean, because I think that is what I was looking for. We spend this money in the best
way we think possible, but then we need to know what is the result is.
Mr. Sullivan: As I said, all the other charging stations on
Kaua`i are offered free. In fact, no one is using our charging stations, the public ones. The
County uses The charging stations that are internal for our vehicles. But the paid charging
that the County offers is not utilized because people can go to Kukui Grove, they can go to
the Hyatt, they can go to a number of other locations to get electricity for free or more
likely use theirs at home because that is how EV user-ship works in many case, more
confidently due to the length of charging. So, that is something that we have learned thus
far and certainly that may change as vehicle technology allows for faster charging and
other evolutions occur.
Mr. Costa: I think if my memory serves me correct, I think
initially the idea was to have it free to the public, so we promote it. But then there was an
initiative from the Council that said no, we should charge, we should be a charging. I know
Glenn went through and tried to determine what is the fee that we should charge.
Ms. Yukimura: That is true. It was the Council who told you to
charge. Okay. I want to correct that I am the lessee, not the lessor of an Electric Vehicle
and I am learning about being such. Okay. Thank you for your input.
Chair Furfaro: Thank you for coming up, Ben.
Mr. Sullivan: Thank you.
Chair Furfaro: Would you continue, George.
Mr. Costa: Maybe you should stay because I am talking
about more energy. Increased use of alternate energy sources via the implementation of
the Kaua`i Energy Sustainability Plan. I know, with Ben and even Councilwoman
Yukimura's involvement with the Kaua`i Energy Sustainability Plan, we have initiatives
that we want to move forward with and that is something that the Mayor firmly believes in
and wants our involvement to continue.
Chair Furfaro: George, just for your information, I used to
co-chair with Councilmember Yukimura. But I want you to recognize that Mr. Hooser has
replaced me.
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Mr. Costa: Oh, okay.
Chair Furfaro: So you know that there are two (2) members
from the Council there.
Mr. Costa: Thank you, thank you very much. Also, increase
the LED certified buildings. Reviewing requirements for the led certification for the Civic
Center and also other County complexes. Again, I want to acknowledge Ben who got his
LED Certification and he is our in-house.
Mr. Sullivan: LEED.
Mr. Costa: I am sorry. LEED person within the Office of
Economic Development and the County. Also, restore storm irrigation system at Kalepa.
This is in keeping with our continued work with Jerry Ornellas and the other members of
the East Kaua`i Water User's Cooperative. We continue to work with that organization.
The Papaya Disinfestations Facility. I know when the Mayor first came up with the Holo
Hobo 2020 Program, we were working on the Papaya Disinfestations Facility. That,
obviously, after many years of trying to reinvigorate and restart that facility, it became
apparent that if you do not have the papaya farmers and if you do not have the
management structure or basically the will power of the people involved, and obviously that
project is not going to happen. So, that facility was actually looked at as a potential site for
other uses by the County and that is still being explored. Leasing of one thousand (1,000)
acres of land to farmers. We continue to work with Agribusiness Development Corporation
(ADC), Jimmy Nakatani on providing more land for farmers. Hopefully making it viable for
farming on Kaua`i.
Chair Furfaro: Excuse me, George?
Mr. Costa: Yes?
Chair Furfaro: Question from Councilwoman Yukimura.
Ms. Yukimura: To me, this should be one of the biggest goals of
the agriculture sector of economic development. I see that there is no money in the budget
for it. We have never had any discussions about it on the floor of this Council so that we
are not really apprised of what the thinking is. I do not know if it is appropriate to have a
designated agenda item.
Chair Furfaro: It is more than appropriate and if
Councilmembers want to have it in Committee, please submit to me a request for an
agenda item and on the other hand, George, I hope on the line item, there is money coming
into us if somebody is our tenant. We are not paying them to be the tenant. To answer that
question.
Ms. Yukimura: Well, I think we are far from actually...
Mr. Costa: We are talking about Kalepa.
Chair Furfaro: No. You raised the question about there is no
money in it. What I am saying is it is because we have no tenants.
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Ms. Yukimura: Well, yes. But I think we may need to seed this
process, appropriately. I hope we are looking at the history of agriculture parks both on our
island and around State so that we do not reinvent the wheel. There was a major study
that the Department of Agriculture did when I was Mayor which led to the fiasco of the
Kekaha Agriculture Park. But there was a very good study done, one of the best, and I
have been looking for it and asking for it. It was done by R.M. Towill and Bill Spitz has
looked for it and said there was a lot of documents that were spoiled and rained on and
destroyed during the hurricane. But I would give a lot of money actually, to get my hands
on that study.
Ms. Nakamura: I may have a copy.
Ms. Yukimura: Really?
Chair Furfaro: Wait, wait, negotiate the amount.
Ms. Yukimura: Name your price.
Chair Furfaro: Name the price.
Mr. Rapozo: We all got one.
Ms. Yukimura: I will put it in the budget.
Mr. Rapozo: We all have one, JoAnn. Name your price. We
all have a copy. Just you did not get one.
Mr. Costa: Okay, because I was going to say, I can contact
because I work with R.M. Towill and I can see if they have a copy.
Ms. Yukimura: Let us find it because it is important as
background information. According to Mike Strong, who was on the Agriculture Committee
and I do not know if others in this room were, but the study was done and then the
hurricane hit and the State moved to implement and somewhere along the line I am told,
the best site that was recommended was not taken. Anyway, I do not know...
Chair Furfaro: It will be a new agenda item, George. If you can
find the plan, let us get that.
Mr. Costa: It is an agriculture park plan?
Ms. Yukimura: Yes.
Mr. Costa: Okay.
Ms. Yukimura: All the wonderful things that are happening and
value added and marketing. I think Jerry has said this before, the key is production and
look the papaya Disinfestations Feasibility Study recommends against refurbishing the
operations due to a lack of papaya farmers. So, one of the keys to agricultural
sustainability is production and we have some really young enterprising farmers, some of
them coming from farmers family like Haraguchi's and Wooten's.
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Chair Furfaro: So, let us focus this on questions. We need to
find the Agricultural Study. We will have a new agenda item.
Ms. Yukimura: We need to know what OED is proposing in
terms of a process for identifying, securing, and implementing an agriculture park of sorts.
Thank you.
Ms. Costa: I will have that for you. As I mentioned, we
collaborated with a lot of organizations and with the Farm Bureau and Jerry Ornellas, who
is the President. Jerry has been the lead person working with Jimmy Nakatani with ADC.
So, we will have something for you.
Ms. Yukimura: Thank you.
Mr. Costa: Then also, the Kilauea Agriculture Park, this is
the farmers market portion. As part of the Mayor's Holo Hobo 2020 and we talked about the
Kilauea Agriculture Park, those who have been to Kilauea during the Sunshine Market it is
in the parking lot of the neighborhood center and it is become very popular. But it is very
aware of the bus and everything else congregates and it is actually a dangerous situation.
So, if we could find another location for the Sunshine Market, that would be a good
opportunity.
Chair Furfaro: Excuse me George, Councilmember Yukimura
has another question regarding the Kilauea facilities and the joint parking lot in front of
the gym.
Mr. Costa: Okay.
Ms. Yukimura: I agree with you that you need another site. But
I think a seven (7) day farmers market is a very different concept and might almost be
separated from the Kilauea Agriculture Park. To me, it would be really unwise to put a
seven (7) day market where the Kilauea Agriculture Park is being proposed. A seven (7)
day market needs to be in the heart of a commercial area and some people have told me
said they think Kapa'a Town is ready for it. I would be open to funding a Feasibility Study
to work with the Kapa'a merchants or if you want to do a quick scan island-wide to see
where is the logical location? I know I talked to Melissa McFerrin about that. She says it
is somewhat tied to production. So, there are all kinds of issues.
Chair Furfaro: Let us deal with questions please.
Ms. Yukimura: But feasibility. Alright, would you folks look at
the possibility of a Feasibility Study for a seven (7) day market and maybe cost it out and
come back to us.
Chair Furfaro: George, I hope you are keeping track of all these
requests of you because this is the budget session. If you have got something planned,
make sure it is thought through before it request it and put it on the agenda, okay? George,
will you continue with your plans?
Mr. Costa: Okay and then the last couple of items I have is
working with the Kaua`i Community College (KCC) on extension of a satellite campus with
degree offerings. In meeting with Helen Cox and Bruce Getsen, again, with Ka`eo Bradford
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and Workforce Development, we work in partnership with them. Maybe not so much
extension of satellite campuses, but really the degree offerings. They have out with the
Agricultural Degree and looking at a four (4) year college. I must say one of the items that
came up for discussion when we were looking at the Commercial Kitchen Business
Incubator and looking at various sites around the island, one of the thoughts were as we
have this Business Incubator and say we are at the Church of the Pacific in Princeville,
they have a commercial kitchen operation that they are willing to open up to the public.
Right next to their commercial kitchen they also have a couple of meeting facilities. So,
instead of people in Hanalei / Ha`ena driving all the way to KCC, maybe they can take a
marketing or business class right there next to the commercial kitchen where we are
having a class. Those are some of the things that we are working on with KCC. The last
one is maintain educational activities programs that Kaua`i Instep Science Show Robotics
Program and that is where we worked with KEDB and Mia Acob. She does a great job. I
am part of the KEDB Education Committee. That is one of the Committees that I am
looking at delegating over to Ka`eo Bradford because she is definitely part of the workforce
community. Also, the educational community because that is a key component. But I just
wanted to acknowledge the Office of Economic Development's involvement with that
portion and working in collaboration with KEDB. Thank you for your time. That is the end
of my presentation. Any questions?
Chair Furfaro: Questions for Mr. Costa on his Department's
operation? Mr. Hooser.
Mr. Hooser: I asked quite a few questions earlier on the Food
Hub and other things, and I just wanted to, I think Vice Chair mentioned some of the
funding items for that. Perhaps a placeholder might make some of us more comfortable
until things are ready. It is my understanding that the project has two hundred
seventy-seven thousand dollars ($277,000) or so and as we sit here I am not sure what we
get out of that. But I would like to offer you, for what it is worth, if I can help personally
outside of an agenda item with the Mayor's permission, of course, I would love to sit down
with your team and talk about so I can better understand it and any mana o I can share to
help move some of these ideas forward. I think they are very exciting ideas. I think we all
I do certainly want to move our agricultural sector forward, the small farmers. But
something tells me it is not ready for primetime and maybe that is just because I do not
know enough about it. But yes, the offer is open. I mean we are doing budgets right now,
so it is kind of hard to find the time. But I would love to help.
Mr. Costa: Well, thank you. Your point is very well taken
and I appreciate and I accept the opportunity to work with you. I am very cognizant of
business venture, business entities that succeed and other that do not. I worked for some
hotel operations that did very well and I have also worked for those that did not.
Councilwoman Yukimura mentioned the Kekaha Agriculture Park, which I really was not
involved with. I did not know much about. But when I went to Seattle and presented the
Kilauea Agriculture Park to the EDA, that was the first thing they threw back at me and
said what about the Kekaha Agriculture Park? So, I had to get up to speed with what was
happening with that one because their memory was very long and they remembered that
one.
Chair Furfaro: George, I want to point out to you that
Mr. Hooser in our organization, does have Agriculture & Sustainability as Chair. So, he
can contact you directly per the protocol with the Mayor without having to go through the
Council Chair. I would encourage you to begin some dialogue with him.
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Mr. Costa: Alright, thank you.
Chair Furfaro: He is the Committee Chair.
Mr. Costa: Thank you.
Chair Furfaro: Questions for George? George, I want to let you
know in ten (10) minutes we have allocated to your Department six (6) hours, total.
Originally, we had two and a half (2 1/2) hours scheduled for you. So, maybe next year we
need to get you a little bit more schedule time.
Mr. Costa: Well, thank you. We have some really good
people in our Department and I want to give them the opportunity to say what they do and
share with the island and with you. Thank you.
Chair Furfaro: We will make a note of that. Five (5) hours and
fifty (50) minutes total since we started Economic Development. George, thank you very
much.
Mr. Costa: Thank you very much.
Chair Furfaro: I have some announcements here. First of all, I
want to say to my colleagues here, that we have been kind of probing and trying to get and
it is constantly gets better. We are constantly making improvements on getting some very
clear assumptions on what is going on with the budget. The budget is an Operating Plan
that takes us forward. I also want to point out that there has been some healthy
discussion. There are some points and counterpoints and so forth, that I think to have a
very constructive understanding of building a budget, it is the kind of dialogue we need to
have. It is very important to constantly be sharing opinions and counterpoints. It is
necessary for an attractive Long Range Plan for the County, that we understand all the
moving parts and the importance of certain improvements and being a good listener is also
part of those skills that are necessary. We are going to find ourselves in a situation that
members, some of you have booked time to meet with our staff in kind of two (2) hour
increments to go through particular pieces. A reminder is the fact that tomorrow during
the April 24th posting, we have a reference in Committee that deals with public hearings on
the process. But the most important one, reminding all of you, that we have one on the
Real Property Tax Resolution that comes up on May 1st at 5:00 p.m. So, please
appropriately block your time for an evening meeting with the public. Mayor, we will be
looking for your supplementary communication, that is due to us on May 8th. Then, a
reminder to everyone to look at your schedule. Thursday the 9th, Friday the 10th, Monday
the 13th and Tuesday the 14th, that is when we have our Decision-Making process and
certainly by then, you have your working notes in place. Before I actually adjourn this
Call-Back Meeting, Mayor would you like to come up and share some time with us?
BERNARD P. CARVALHO, JR., Mayor: Yes. First of all, thank you, Chair
Furfaro and Councilmembers. It has been a long, long day. Like you mentioned, healthy
dialogue. We talked about that from the very beginning and I think just the process this
whole year we came out early. I wanted to make sure our Department Heads and all our
team members were informed early enough so we could come up with a plan and get to a
place where we could have this healthy dialogue going back and forth. I think we have
much more to go, deliberations will take place soon. But I am hoping that with the
information, just as George himself coming up and presenting today and all the other
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Departments. But seeing the large amount of information and all the different policies and
procedures and decision that all have things that have to happen, and it is staking place.
We are trying our very best to provide you with the information and from your side, giving
us information. It would be helpful too, I mean, if you come up with ideas that you put
down your goals and objectives for whatever you think are worthy, so we can look at things
and really read through i
t and understand what you mean and how you want to look g o ook at
Y Y
certain projects that are dear to your hearts. We opened up dialogue with our Department
Heads and Councilmembers individually. You had that opportunity to do that early. Our
budget is online now. Everybody can read it upfront. Once it comes out, it is online. So, we
are trying our best to be as open as possible. But at the end of the day, we are going to have
to make the tough decisions on what direction we are going to take. From this side of the
fence or this side and your side, I mean Chair, you mentioned some of the key leaders or
members in our cabinet. But you have awesome guys on your side too that have lots of
years of experience, that work really well with our team members. So, we have to keep that
part moving as well. I think collectively, overall, when we laid out what we wanted to do
and what we wanted to accomplish, how we wanted to respond back in a timely manner,
trying to be open as possible, I think that is the bigger piece for our Department Heads
being very well prepared and being able to respond, and give you the information that you
need, same here on our side as we continue to move forward. Hopefully, as we conclude, the
next steps will follow and we will be here again and looking, hearing, listening and when
you come down to the decisions we have to make, that we have that chance and opportunity
to talk story and to share our thoughts and ideas before any decisions are made. I want to
make that clear because we are going to go back and regroup and sort through some of the
questions. I think the list is not as much as before because we were able to respond more
quickly on the floor and that was one of the big parts I wanted to make sure we could
respond to you folk as quickly as possible. But just understand that it is very time
consuming and you know that. We have a lot of things that we have to deal with daily and
you know that, about trying to come up with a plan and process that I think the people
watching see us working together and come up with a good, solid budget that can hopefully
— not everybody is going to agree, I know that. But something that can find balance and
move forward for our people. Thank you for the chance and opportunity. We look forward
to more healthy dialogue. Thank you.
There being no objections, the meeting was called back to order, and proceeded as
follows:
Chair Furfaro: Thank you, Mayor. Members, I just want to
point out that we had some new items that need to come up, it at the Administration's
request to be on the agenda. We had a pretty serious discussion about roads. We have had
certainly some healthy points on parks especially as it relates to the Wailua Golf Course
and strategy there. Economic Development as we have seen today and especially the
agricultural portion of it. A better understanding of releasing moneys for CIP projects more
currently. On a personal note, Mayor, I want to thank you for the progress being made in
the Department of Human Resource. That presentation was well received by me. I feel
that they are hitting the target. I just wanted to share that with you and on that note, I am
going to adjourn our Budget Call-Back Meetings.
There being no objections, the Departmental Budget Reviews and Departmental Call-Backs
was adjourned on Tuesday, April 23, 2013, at 4:58 p.m.