HomeMy WebLinkAbout04/06/2016 Council minutes COUNCIL MEETING
APRIL 6, 2016
The Council Meeting of the Council of the County of Kaua`i was called to
order by Council Chair Mel Rapozo at the Council Chambers, 4396 Rice Street,
Suite 201, Lihu`e, Kaua`i, on Wednesday, April 6, 2016 at 8:31 a.m., after which the
following Members answered the call of the roll:
Honorable Mason K. Chock
Honorable Gary L. Hooser (present at 8:36 a.m.)
Honorable Ross Kagawa
Honorable Arryl Kaneshiro
Honorable KipuKai Kuali`i
Honorable JoAnn A. Yukimura
Honorable Mel Rapozo
APPROVAL OF AGENDA.
Councilmember Kuali`i moved for approval of the agenda as circulated,
seconded by Councilmember Kaneshiro, and carried by a vote of 6:0:1
(Councilmember Hooser was excused).
MINUTES of the following meetings of the Council:
February 17, 2016 Special Council Meeting
February 17, 2016 Public Hearing re: Bill No. 2615
February 24, 2016 Council Meeting
March 17, 2016 Special Council Meeting
Councilmember Kuali`i moved to approve the Minutes as circulated,
seconded by Councilmember Kaneshiro, and carried by a vote of 6:0:1
(Councilmember Hooser was excused).
CONSENT CALENDAR:
C 2016-77 Communication (03/09/2016) from the Mayor, transmitting for
Council consideration and confirmation, the following Mayoral appointments to the
various Boards and Commissions for the County of Kaua`i:
a. Charter Review Commission
• Russell M. Wong — Term ending 12/31/2018
b. Fire Commission
• Chad K. Pacheco — Term ending 12/31/2016
Councilmember Kagawa moved to receive C 2016-77 for the record, seconded
by Councilmember Kuali`i, and carried by a vote of 6:0:1 (Councilmember
Hooser was excused).
COUNCIL MEETING 2 APRIL 6, 2016
C 2016-78 Communication (03/15/2016) from the Director of Human
Resources, transmitting for Council information, the March 15, 2016 Human
Resources Reports, pursuant to Section 19 of Ordinance No. B-2015-796, relating
to the Operating Budget of the County of Kaua`i for the Fiscal Year 2015-2016,
which includes new hires, transfers, reallocations, promotions, and vacancies for the
period of November 16, 2015 to March 15, 2016: Councilmember Kagawa moved to
receive C 2016-78 for the record, seconded by Councilmember Kuali`i, and carried by
a vote of 6:0:1 (Councilmember Hooser was excused).
C 2016-79 Communication (03/16/2016) from Councilmember Chock,
providing written disclosure of a possible conflict of interest and recusal regarding
Bill No. 2625, the Mayor's Proposed Operating Budget for the Fiscal
Year 2016-2017, specifically the appropriation for Leadership Kaua`i (Office of the
Mayor), as he is a volunteer and facilitator for the annual Leadership Kaua`i adult
class: Councilmember Kagawa moved to receive C 2016-79 for the record, seconded
by Councilmember Kuali`i, and carried by a vote of 6:0:1 (Councilmember Hooser
was excused).
C 2016-80 Communication (03/16/2016) from Councilmember Kaneshiro,
providing written disclosure of a possible conflict of interest and recusal regarding
the Grove Farm (Puhi Metals Recycling) Liabilities appropriation in the
Department of Finance — Administration and 800 MHz Radio Site Lease: Grove
Farm appropriation in the Civil Defense Agency, as reflected in Bill No. 2625, the
Mayor's Proposed Operating Budget for Fiscal Year 2016-2017, as he is a Project
Specialist employed by Grove Farm Company, Inc.: Councilmember Kagawa moved
to receive C 2016-80 for the record, seconded by Councilmember Kuali`i, and carried
by a vote of 6:0:1 (Councilmember Hooser was excused).
C 2016-81 Communication (03/16/2016) from Councilmember Kaneshiro,
providing written disclosure of a possible conflict of interest and recusal regarding
Bill No. 2625, the Mayor's Proposed Operating Budget for Fiscal Year 2016-2017,
specifically the East Kaua`i Water appropriation in the Office of Economic
Development — Grant-In-Aid, and Kaua`i Soil Conservation appropriation in the
Department of Public Works — Grant-In-Aid, as he is a Director for the East Kaua`i
Soil & Water Conservation District: Councilmember Kagawa moved to receive
C 2016-81 for the record, seconded by Councilmember Kuali`i, and carried by a vote
of 6:0:1 (Councilmember Hooser was excused).
C 2016-82 Communication (03/16/2016) from Councilmember Kuali`i,
providing written disclosure of a possible conflict of interest and recusal regarding
the Mayor's Proposed Operating Budget for Fiscal Year 2016-2017 YWCA (Office of
Economic Development — Grant-In-Aid), as he is the Director of Operations for the
YWCA: Councilmember Kagawa moved to receive C 2016-82 for the record,
seconded by Councilmember Kuali`i, and carried by a vote of 6:0:1 (Councilmember
Hooser was excused).
C 2016-83 Communication (03/17/2016) from Councilmember Yukimura,
providing written disclosure of a possible conflict of interest and recusal regarding
Bill No. 2625, the Mayor's Proposed Operating Budget for Fiscal Year 2016-2017,
specifically the appropriation to the Boys & Girls Club (Department of Parks &
Recreation — Kaua`i War Memorial Convention Hall), as she is on the Kauai
COUNCIL MEETING 3 APRIL 6, 2016
Advisory Board for the Boys & Girls Club of Hawai`i: Councilmember Kagawa
moved to receive C 2016-83 for the record, seconded by Councilmember Kuali`i, and
carried by a vote of 6:0:1 (Councilmember Hooser was excused).
C 2016-84 Communication (03/23/2016) from the Director of Finance,
transmitting for Council information, the Period 8 Financial Reports — Detailed
Budget Report, Statement of Revenues (Estimated and Actual), Statement of
Expenditures and Encumbrances, and Revenue Report as of February 29, 2016,
pursuant to Section 21 of Ordinance No. B-2015-796, relating to the Operating
Budget of the County of Kauai for the Fiscal Year 2015-2016: Councilmember
Kagawa moved to receive C 2016-84 for the record, seconded by Councilmember
Kuali`i, and carried by a vote of 6:0:1 (Councilmember Hooser was excused).
Council Chair Rapozo: Madame Clerk, can we go to
communications?
COMMUNICATIONS:
C 2016-69 Communication (02/16/2016) from the Chief of Police, requesting
Council approval of an unbudgeted purchase of a 48 feet by 20 feet (960 square feet)
mezzanine for an approximate cost of$80,000.00, and subsequent installation at the
Kaua`i Police Department's Station in Lihu`e to address the need for additional
space for evidence storage; $50,000.00 of the cost of the mezzanine will come from
unexpended funds in Account No. 001-1003-551.43-03, (Kaua`i Police Department,
Administrative & Technical Bureau, Repair and Maintenance Vehicles), and the
remaining $30,000.00 will come from unexpended funds in Account
No. 001-1001-551.01-01 (Kaua`i Police Department, Chiefs Office, Regular Salaries)
as a result of vacant positions: Councilmember Kagawa moved to approve
C 2016-69, seconded by Councilmember Yukimura, and carried by a vote of 6:0:1
(Councilmember Hooser was excused).
C 2016-70 Communication (02/22/2016) from the Chief of Police, requesting
Council approval of an unbudgeted purchase of fifteen (15) newly marked Ford
Explorer patrol vehicles, at an estimated cost of $50,000.00 to $55,000.00 for each
vehicle (total of $750,000 to $825,000), using unexpended funds anticipated in
Account No. 001-1001-551.01-01 (Kaua`i Police Department, Chiefs Office, Regular
Salaries), to keep the Kaua`i Police Department on track with their strategic vehicle
replacement plan which necessitates the purchase of forty-five (45) newly marked
patrol vehicles over the next three (3) years, and with the understanding that no
vehicles will be budgeted in Fiscal Year 2017: Councilmember Kagawa moved to
approve C 2016-70, seconded by Councilmember Yukimura, and carried by a vote of
6:0:1 (Councilmember Hooser was excused).
C 2016-85 Communication (03/04/2016) from the Chief of Police, requesting
Council approval of an unbudgeted purchase of twenty-five (25) Laptop Computers
to be used as Mobile Data Terminals (MDT), at an estimated cost of $75,000.00
($3,000.00 each), using unexpended funds anticipated in Account
No. 001-1003-551.66-01 (Kaua`i Police Department, Administrative & Technical
Bureau, Gasoline): Councilmember Kuali`i moved to approve C 2016-85, seconded
by Councilmember Yukimura.
Council Chair Rapozo: Councilmember Yukimura.
COUNCIL MEETING 4 APRIL 6, 2016
Councilmember Yukimura: Can we have the Kaua`i Police Department
(KPD) come up?
Council Chair Rapozo: Yes. The rules are suspended. Can you
please state your name for the captioner? You may proceed if you have a
presentation. Can you give us a broad overview of what you folks are planning?
(Councilmember Hooser was noted as present.)
There being no objections, the rules were suspended.
ROBERT GAUSEPOHL, Assistant Chief: Good morning, Council. Robert
Gausepohl for the record.
TYRUS CONTRADES, Police Officer: Tyrus Contrades.
Mr. Gausepohl: I will let Tyrus explain the function of the
Mobile Data Terminals (MDT), but the need is that we are actually short, so we
have had additional officers and anticipate at least twenty-one (21) more units, so
we would have four (4) spares. If you want to hear the functionality, Officer
Contrades can explain it to you.
Council Chair Rapozo: Does anyone have any questions? You have
provided a sheet, which is quite precise and covers everything. It is basically laptop
computers for the officers in the vehicles so they can process all of these requests
without having to go through dispatch.
Mr. Gausepohl: Correct, they are "ruggedized" as well, so
they are not just a typical laptop. They have to be a little tougher than most.
Council Chair Rapozo: Any questions? Councilmember Yukimura.
Councilmember Yukimura: Thank you. Good morning. We are seeing a
lot of your team lately.
Mr. Gausepohl: Good morning. Yes.
Councilmember Yukimura: I want to also say that this presentation is
really excellent. We should label it as a model for other departments, but like the
Chair said, it was very clear and concise. Is part of this due to our success in
recruiting?
Mr. Gausepohl: Yes.
Councilmember Yukimura: So we are almost full in terms of our staffing.
Mr. Gausepohl: Correct.
Councilmember Yukimura: This also includes the Community Oriented
Policing Services (COPS) grant that is coming up?
COUNCIL MEETING 5 APRIL 6, 2016
Mr. Gausepohl: Yes.
Councilmember Yukimura: Okay. So as we expand the force, these are
some of the costs that we need to look at.
Mr. Gausepohl: That is correct.
Councilmember Yukimura: These are tied into our...well, it is not
dispatch, but what is the data processing that you are now working on...
Mr. Gausepohl: The E-911?
Council Chair Rapozo: I think she is talking about the records
management system.
Councilmember Yukimura: Correct.
Mr. Gausepohl: Yes, it is directly tied to that. With this new
system, we will have a lot more functionality and the officers will be much more
able to access information, pull records, and do license checks, which takes a lot of
pressure off our telecommunicators, our dispatchers. Right now, they have to run
everything that the officers say over the radio, so there is a lot of talking going back
and forth and this should help eliminate that when we get our new system.
Councilmember Yukimura: That sounds like a major improvement.
Mr. Gausepohl: It is a very major improvement. We
anticipated having some of that functionality with this system that we currently
have, but it never actually came to pass the way we needed it to work. This new
system will be able to instant message officer to officer. They will be able to run all
the checks, including warrants and what not. So far, the County has not had to pay
for any of these MDTs. We have been able to get funding, but at this point, we are
out of additional funding. Once we get grant funds, we usually have to replace
those items when they are at their end of life. We are at that with some of them.
Councilmember Yukimura: You say these models of these MDTs are
tougher than the regular off the shelf ones, and it is not so much...well, you need
the laptop, but it is in the programming that you connect and make this vast
improvement in your data system.
Mr. Gausepohl: Right, that is correct. Tyrus is extremely
good at the technical end, so I will let him address that if he can.
TYRUS CONTRADES, Police Officer: The newer ones that we are looking at
are faster and we will have more functionality than the ones that we have now,
especially the ones that are at the end of life.
Councilmember Yukimura: So you will have a mix of the older ones and
newer ones, but gradually you will...
Mr. Gausepohl: Actually, we got forty-five (45) in 2013,
which replaced the initial set that we got in a grant. Then we just got fifteen (15)
COUNCIL MEETING 6 APRIL 6, 2016
more this year, but we are still hanging on by our fingernails to try to give
everybody the proper equipment.
Councilmember Yukimura: For those fifty (50), you got outside funding.
Mr. Gausepohl: Yes.
Councilmember Yukimura: So that is your grant.
Mr. Gausepohl: This will be the first time that the County
will have to pay for these laptops.
Councilmember Yukimura: Will you be scheduling the replacements now
so that they are scheduled and incremental, rather than huge amounts.
Mr. Gausepohl: We have a real good working relationship
with Information Technology (IT) and we have been working closely with them on
that projected schedule. These should last at least five (5) years. So 2018 would be
the soonest we would need any replacements. We have kind of chopped it almost in
half.
Councilmember Yukimura: Okay. Thank you very much.
Mr. Gausepohl: Thank you.
Council Chair Rapozo: Any other questions for the Kaua`i Police
Department? If not, thank you very much. Any public testimony? Seeing none, I
will call the meeting back to order. Further discussion? I would like to say thank
you to KPD for your efforts and your work. I remember walking around the
mainland and seeing these things in police cars and just wishing one day that
Kaua`i would get them and it is so nice to have them. I also want to thank you folks
for choosing to wear blue today because it is "Child Abuse Prevention Month" and I
think it is appropriate that I read this here because I see everyone here is wearing
blue as well...in fact, everybody is wearing blue...almost everybody. "Childhood
advocacy groups are gearing up for lots of special events this month and please
show your commitment to Child Abuse Prevention Month and our shared
responsibility to keep kids safe by wearing blue on Wednesday, April 6th. It is not
just about wearing blue, but even more importantly, it is about telling people why
you are wearing blue. This is a simple way we can all make a difference, educating
one (1) person at a time." KPD, I just wanted to take that opportunity to thank you
folks in all of your efforts for the prevention of child abuse and all that you have
done. I know you folks have done some really extraordinary work in the last several
months. You do not really read about it in the paper, but I just wanted to take this
opportunity to thank you folks personally and I am sure I speak for the rest of the
members. I am not sure if anyone else has some comments before they leave. If
not, Councilmember Yukimura.
There being no objections, the meeting was called back to order, and
proceeded as follows:
COUNCIL MEETING 7 APRIL 6, 2016
Councilmember Yukimura: I have said this during budget, but I think
the Police Department has sort of set the standard for presentation, analysis, and
really creative thinking in budgeting and I am very, very pleased and grateful.
Council Chair Rapozo: Thank you.
The motion to approve C 2016-85 was then put, and unanimously carried.
C 2016-86 Communication (03/09/2016) from the Director of Planning,
transmitting the Planning Commission's recommendation to amend Chapter 10,
Kaua`i County Code 1987, as amended, by adding a new Article 5B, to allow for
construction of additional rental units in the Lihu`e Planning District:
Councilmember Kuali`i moved to receive C 2016-86 for the record, seconded by
Councilmember Kaneshiro.
Council Chair Rapozo: Discussion? Councilmember Chock.
Councilmember Chock: Thank you, Chair. I was not sure if you
wanted to do a little discussion on it. I know this Bill is for first reading today. We
could maybe do it now since Ka`aina is here.
Council Chair Rapozo: I have no problem with doing the discussion
here. When we get to the Bill, we can just process the Bill. If you have any
questions, we will do it now. With that, I will suspend the rules. Councilmember
Chock.
Councilmember Chock: Just a brief overview, the Bill being
presented today is in response to the need for housing on Kaua`i. It is projected that
we will need up to ten thousand (10,000) new housing units by the year 2035. This
Bill is focused specifically on the Lihu`e region, as projected, approximately four
thousand six hundred (4,600) of those ten thousand (10,000) units will be needed
within the Lihu`e region as slated for the most densely populated area and growth
area in the future. So this is in response to the Additional Rental Units (ARUs)
that we have been looking and talking with the Administration on. I will not say
much more on it because I think it will take a lot of discussion to go through and
understand all of the dynamics of it, but I am happy that Ka`aina is here to help
with it and I want to thank Councilmember Hooser for cosponsoring it as well.
Council Chair Rapozo: Councilmember Kagawa.
Councilmember Kagawa: Ka`aina, currently we have an Additional
Dwelling Unit (ADU) allowance for residential properties and we have specific
guidelines, right? For instance, the lot has to be more than ten thousand (10,000)
square feet.
There being no objections, the rules were suspended.
KAAINA HULL, Deputy Planning Director: Ka`aina Hull, Deputy
Planning Director. Correct.
Councilmember Kagawa: So will this add additional ADUs or open up
the window for lots less than ten thousand (10,000) square feet?
COUNCIL MEETING 8 APRIL 6, 2016
Mr. Hull: Yes. The technical reference to the type of
use will be an additional rental unit. The way the current bill is structured is that
it would not be available for those lots that currently have ADUs or guesthouses on
them. It would just be available for those lots that essentially just have a
single-family dwelling.
Councilmember Kagawa: The ten thousand (10,000) square feet
requirement—in the past, there must have been a reason, right? I know we have
limits on lot coverage so that we do not have too much buildings right next to each
other. Is that fifty percent (50%)?
Mr. Hull: Fifty percent (50%).
Councilmember Kagawa: Is that the maximum that we will allow for
building on a land?
Mr. Hull: Yes, for residential properties, the lot
coverage is fifty percent (50%).
Councilmember Kagawa: Does that include driveway?
Mr. Hull: It does include driveway. Well, it includes
all impermeable surfaces, so if the driveway is concrete then that would include the
driveway.
Councilmember Kagawa: So by allowing this Bill to pass, would we be
bending the rules on lot coverage?
Mr. Hull: No. Currently, they would still hold to the
fifty percent (50%), so they would not be allowed to go beyond that fifty percent
(50%) that currently exists.
Councilmember Kagawa: What is the give? How long was the ten
thousand (10,000) square feet thing in place for? Forty (40) years?
Mr. Hull: I will have to double check on that.
Councilmember Kagawa: What is going to be the give? There is
always a give and take, right?
Mr. Hull: So ultimately, to go back is when looking at
the need for housing, and in particular, a lot of this discussion arose from
discussions that we were being had with the Housing Agency, in which the Housing
Director at the time was looking at ways in which to sprawl on the private market
to provide affordable housing. He was basically stating at the time that if you look
at the Housing Agency to provide affordable housing units, it would cost roughly
five million dollars ($5,000,000) to provide twenty (20) units. How do we sprawl on
the private market to build these units themselves? The first case is just giving
these people entitlement. Currently, most of these units are, at least when you look
in the Lihu`e area, where a lot of growth is projected to be over the next twenty (20)
years, a lot of them have built out to their capacity, whether they are building out to
COUNCIL MEETING 9 APRIL 6, 2016
ADUs or they have the single-family dwelling and they hit that ten thousand
(10,000) square feet threshold. So the Administration looked at the Lihu`e Town
Core Plan and ways to implement this higher densified use of residential units in
the Lihu`e area. Councilmember Chock and Councilmember Hooser have been
working on a bill in similar nature, so we found similarities and basically pulled the
two (2) together and introduce what you have here. There is no further
circumvention of say setback laws or lot coverage. They still have to meet those
standards, but it is just providing the land use entitlement to say, "If you can build
these things, please indeed build it." Some of the problems that we encountered
with the ADUs, which was essentially established to address the housing needs of
Kaua`i at the time is there was just the density entitlement allotted to a property
owner; however, there were no regulations to ensure that they did not fall more into
the speculative nature of the market. They have since...kind of originally pitched
as "`ohana family units" for our families to move in. Without any further regulation
such as regulating the size of the units or particularly regulating the Condominium
Property Regime (CPR) of the units off to be sold within the speculative market, a
lot of these units ended up going into the hands of the uses which was not originally
intended for providing housing for the workforce and local population of Kaua`i. So
in drafting the ARU Bill and recognizing that a lot of Lihu`e is built out, but there
are some areas that can still be built out, this Bill prohibits the CPR of the unit off.
Therefore, it does not go into the speculative market per se. Also, it restricts the
size of the unit: five hundred (500) square feet for those properties that are three
thousand five hundred (3,500) square feet or smaller and no bigger than eight
hundred (800) square feet for the larger units. In restricting the size, we worked a
lot with the Chamber of Commerce and the Board of Realtors to figure out that just
by restricting the size you are aiming at that local workforce housing market in and
of itself. So that is kind of the gist of the draft ordinance you folks have before you.
Councilmember Kagawa: Is the infrastructure in place? What is the
goal of the bill? If we pass this Bill, what is the potential that we are striving for?
You said four thousand seven hundred (4,700) units?
Mr. Hull: Ultimately, there is roughly nine thousand
(9,000) units that have to be built in the Lihu`e area over the next twenty (20) years.
Councilmember Kagawa: Do we look at the inventory and say, "Well, if
we pass this Bill, it is likely that maybe fifty percent (50%) of the inventory may opt
to do it and that number equals"...we do not know...
Mr. Hull: It is hard to say because ultimately it is what
the private sector decides to do with it, right? I think Honolulu recently passed a
draft ordinance somewhat of this nature in which large numbers were projected to
be built out and those numbers just were not had. A lot of it had to do with because
of the ordinances that they passed had a lot of further regulatory implications that
property owners could take advantage of the entitlement. So it is hard to say
because when you look at Lihu`e, there are so many places that have built out to
that fifty percent (50%) lot coverage and there are so many properties that have
already taken advantage of that additional dwelling unit capability. There are also
individual properties that are within associations that do not allow second
dwellings on the lot, so there is a lot of already existing scenarios in which these
units would not be available to the property owner.
COUNCIL MEETING 10 APRIL 6, 2016
Councilmember Kagawa: Before we pass a bill, I would like to know
what those numbers are. I know it is difficult to find, but it would be nice to have so
that we can tell the public, "Well, we are bending the rule here, but this is the
potential affordable housing that we can tackle." If we just pass bills and we do not
even know what the numbers are...yes, it could be a good thing, but I think it is
good to have some accountability to the public and having those numbers are
important.
Mr. Hull: We can get some draft numbers. The
concern with that is that there is "the potential" and there is "what is actually going
to happen." What we are finding with some of these...let us take the Lihu`e Town
Core Plan, which was passed about six (6) or seven (7) years ago, which gave a lot of
property owners further entitlements. It gave them the ability to build more
dwelling units and gave them the ability to create commercial operations within
their lot that they could not previously take advantage of that. Pretty much the
community, the island, said, "We want to direct growth here and we want further
development and economic generation in this area." What we found in the six (6)
and seven (7) years is that just giving them zoning was not enough to spur them on
to say, "I am willing to take this risk to enter this market to put in these
infrastructure costs or put in these upfront construction costs to develop my
property." It is hard to say. You can see the potential, but what will ultimately
spur on the actual property owner to build these units is a whole other scenario. We
are working with various groups, such as the Chamber of Commerce, Lihu`e
Business Association (LBA), and the Board of Realtors to further look at how to
spur on property owners to say develop ARUs, because these ARUs could
potentially service a vital need for the housing demand of Kaua`i. We are looking at
sending over somewhat of an incentive package for property owners to take
advantage of this item, but it is hard to say.
Councilmember Kagawa: This is my last question, Ka aina. If this Bill
passes and people qualify for the ADU, would they have to pay for a separate water
meter?
Mr. Hull: For the ARU?
Councilmember Kagawa: Yes.
Mr. Hull: In our discussions with the Department of
Water, yes they would. Excuse me, let me backtrack. They would have to pay for a
separate Facilities Reserve Charge (FRC) charge. Whether or not they want to go
on the same water meter or have a separate water meter, as we understand it, that
opportunity will be available to them, but a separate FRC charge would be arranged
and that is really where the upfront cost is fairly large.
Councilmember Kagawa: Are you talking about the fifteen thousand
dollar ($15,000) charge?
Mr. Hull: Under the Department of Water's rules, it is
roughly fifteen thousand dollars ($15,000) for a separate unit or roughly nine
thousand dollars ($9,000) for an attached or multifamily dwelling unit. The
department anticipates, given the build out of Lihu`e, that the vast majority of
COUNCIL MEETING 11 APRIL 6, 2016
property owners that would take advantage of this capability for ARUs would
actually be classified under the multifamily system.
Councilmember Kagawa: So my follow-up to that is knowing that you
folks know that there is a housing shortage—we have two (2) votes: the County
Engineer and the Planning Director voting on that Board of Water Supply, so why
would we make the FRC charges jump from six thousand dollars ($6,000) to fifteen
thousand dollars ($15,000) and say to the public, "I wonder why you folks are not
building the extra unit?" You should know why...those decisions there...from
one (1) year inflation from six thousand dollars ($6,000) to fifteen thousand dollars
($15,000) is unreasonable and we should have gone six thousand dollars ($6,000) to
seven thousand dollars ($7,000) to eight thousand dollars ($8,000) over ten (10)
years and get up to fifteen thousand dollars ($15,000). Anyway, that is my
frustration with that if that is true. Thank you.
Mr. Hull: To that point, Councilmember, that is
somewhat of what we are talking with contractors and developers and realtors, and
that is the nature of the game of why do we see so much of the housing stock being
put online are those three thousand (3,000) to four thousand (4,000), five thousand
(5,000) square feet units that really are not being aimed at the workforce or local
housing demands. A lot of it comes back to the risk of the venture in that if you
have to put up these fairly large infrastructure costs at the frontend, it is a safer
investment to go after that large scale development that is going to bring more
return on the market. That discussion about, "Well, should we not be possibly
reducing the infrastructure burden on those type of smaller units that are in dire
need here on Kaua`i?" I know that discussion is actually being had the Board of
Water of Supply as we speak.
Councilmember Kagawa: To me, you have two (2) scenarios, right? If
you pass the charges for the future to all of the rate payers...but just charging it
and going with a nine thousand dollar ($9,000) increase in one (1) year from six
thousand dollars ($6,000) was the most ridiculous decision I have ever heard of in
government. Thank you.
Council Chair Rapozo: The Bill says that Lihu`e will need to absorb
or create about forty-six hundred (4,600) units; two thousand (2,000), which will be
done through plan development, so the remaining two thousand six hundred (2,600)
would need to be developed elsewhere in Lihu`e. Is that the target? Two thousand
six hundred (2,600)?
Mr. Hull: Council Chair, I wish this would
accomplished that, but in no way do we anticipate this Bill accomplishing over one
thousand (1,000) units.
Council Chair Rapozo: I am following up on Mr. Kagawa's question;
what is the ballpark? I think that is what he is trying to find out. Is it two
thousand six hundred (2,600)? Is it one thousand (1,000)? Is it five hundred (500)?
So it is not anywhere near?
Mr. Hull: I would say it is a small component of
addressing those numbers. There is definitely going to have to be other projects
COUNCIL MEETING 12 APRIL 6, 2016
online, as well as other strategies to try to get to that number, but this is a
component of it.
Council Chair Rapozo: Well, it is going to be hard to sell a four
hundred (400) square feet unit to build a four hundred (400) square feet unit
detached and have to pay fourteen thousand dollars ($14,000) for water. That is
insane. That is thirty-five dollars ($35) a square foot just to get water. My last
question is that the Bill also talks, "The purpose of this ordinance is to encourage
and accommodate the construction of additional rental units and to increase the
number of affordable rental units." There is no affordable requirement though?
Mr. Hull: We have been in close discussions with the
Housing Agency on this, as well as the Board of Realtors. The Housing Agency was
accommodating to this proposal, in the sense that the square footage size of the unit
will keep it at a relatively affordable rate.
Council Chair Rapozo: Ka`aina, you know that is not true. Rich
people live in small houses. The market will dictate the price. I just wanted to
know that there is no intent at this point, and maybe I should ask the introducers,
but I would assume that you folks worked with the Planning Department quite a
bit, so I am just trying to get the Administration's point of view of should we not
have an affordability component in here? Have you even been to San Francisco?
Princeville is a good example, Councilmember Yukimura. The four hundred (400)
square...that is not going to stop...the market will bear it and I have some horror
stories currently on this island. My friend is getting evicted right now because
someone is willing to pay two thousand eight hundred dollars ($2,800) a month
versus his one thousand three hundred dollars ($1,300) a month. So five (5) homes
in a cul-de-sac...one (1) owner built the five (5) homes years ago—he has been there
for seven (7) years, one thousand three hundred dollars ($1,300) a month, but
one (1) person moved in, two thousand eight hundred dollars ($2,800). That person
called their friends on the mainland and four (4) other families are moving here to
pay two thousand eight hundred (2,800) a month, so my friend gets the notice. The
house size does not matter.
Mr. Hull: To that, Council Chair, I think at the end of
the day, it is going to be up to this body whether or not it triggers the affordable
housing mechanism of the 140/120% of the income. I think it is up to this body.
One of the things that had come back from some members of the public and various
groups was that the reason so many housing owners or renters actually do not sign
up for the affordable program. They could go with rates, as well as the tax
incentives that are involved with the affordable housing program, but the one
problem with it was the six (6) month requirement and the fact that if they had a
bad tenant, per se, that they just needed to get rid of, that six (6) month
requirement prohibited them from essentially doing that. It is a fine balancing act,
but in looking at the provisions of these entitlements and hoping that private
property owners will build these units, it is kind of...our first stab at it was to try
and reduce as many barriers of entry, but I definitely heed your caution on going
down that line.
Council Chair Rapozo: Councilmember Kuali`i.
COUNCIL MEETING 13 APRIL 6, 2016
Councilmember Kuali`i: You used the term "ADU" and in the Bill it is
written "Additional Rental Unit," so are they interchangeable?
Mr. Hull: No. So currently, "ADUs" or "Additional
Dwelling Units" are allowed within all residential properties over ten thousand
(10,000) square feet that qualify for only one (1) dwelling. As long as you meet the
setbacks and lot coverage and so forth, you can build an ADU at whatever size, as
well as you can CPR that unit off and sell it off onto the market. The "ARU" are for
those properties that are similar in nature, but have not taken advantage of the
ADU capability, and perhaps because it is the size of the property, say it is under
ten thousand (10,000) square feet. It allows them to build this additional unit.
With the ARU, it will predominantly remain within the rental category because
there is a prohibition on the CPR and selling off of it, as well as there is a size
restriction on the structure.
Councilmember Kuali`i: You also used the term "ohana," so is ohana
an ADU, ARU, or neither?
Mr. Hull: I used the term "ohana' because locally the
ADU is referred to an "ohana' unit or technically referred to as that, at least on
Kauai.
Councilmember Kuali`i: Then the limitation here about ADU rental
units are not permitted on lots less than three thousand five hundred (3,500) square
feet, and then you said the thing about whether it is already—here is an example: a
family encloses the garage and behind the garage is the washroom, which has an
outside toilet, and they connect that toilet to the enclosed garage, and there is a
grown child who lives outside and contributes to the household or whatever. Is that
under the phrase a "multifamily dwelling" or "dwellings?"
Mr. Hull: Correct. It would be classified as a
multifamily dwelling.
Councilmember Kuali`i: So they would not be allowed to have this
new rental unit because they already have that? They are using for their family;
they are not renting it out.
Mr. Hull: If a family encloses their garage and utilizes
it as a bedroom, that is just an expansion of the dwelling unit itself; however, what
you see often is it will be separated off, via wall or whatnot, and a kitchen would be
placed within that garage or extra unit. At that point, it gets classified as a
dwelling unit and the vast majority of those out there that have kind of done that
have done so...actually, I will not say the vast majority, but there are multiple
situations where property owners have done that illegally. They are technically in
violation the Kaua`i County Code that does not allow the extra dwelling unit there
because of the size of the property. If a family has done that currently...
Councilmember Kuali`i: It is no more lot coverage because they just
enclosed the garage.
Mr. Hull: They add an extra dwelling unit. The
department is not actively going after those units, because at the end of the day, we
COUNCIL MEETING 14 APRIL 6, 2016
have to admit that while it is on the black market and it is illegal, they are
providing a much needed use for housing opportunities here on Kaua`i.
Councilmember Kuali`i: And mostly to family.
Mr. Hull: Yes.
Councilmember Kuali`i: Because you have three (3) generations
living in the same property.
Mr. Hull: Correct, so if we get the complaint, we are
required by law to do an investigation and if we find it then we do have to issue a
violation.
Councilmember Kuali`i: If the intent of this Bill is to provide
additional housing, why would you exclude those families?
Mr. Hull: It is not excluding those families. It would
actually allow those families to come in and become...
Councilmember Kuali`i: No, exclude them from adding. If they had
the garage enclosed and the son or daughter is using it, the multi-generation, and
then they wanted to build, so now this ADU or ARU can be detached, right? They
could rent it out to strangers or other local families.
Mr. Hull: Currently, what this Bill would allow for
that scenario would be able to allow that family to come into compliance, insofar
they still meet the setbacks and lot coverage of the County Code.
Councilmember Kuali`i: Right, but coming into compliance now
means paying all of this additional money, right?
Mr. Hull: Well, the ordinance does allow a waiver of
the after-the-fact permit fee, should they come in within one (1) year.
Councilmember Kuali`i: So would this Bill also then be basically
making the County and planning more responsible to now trying to get all of these
people into compliance, because you said that there is probably a lot of people doing
that for their families, like three (3) generations living together. The existence of
that kitchenette or whatever is probably minimal in some cases. At some points,
they probably still come into the main house for dinner or whatever or let the
grandmother cook. This Bill could open the door for saying now you have to go and
get them to all come into compliance and cause them additional costs. It could.
Mr. Hull: Well, we had multiple discussions on
enforcement. It would be, say the Council's prerogative to say along with this Bill,
"We want more enforcement to go and shut down these illegal, somewhat
semi-family units." That would be your prerogative. I do not think it is the
prerogative of the departments at this time. It just affords the opportunity for those
that were in dire need of providing housing for our families to come in and be made
whole and be made compliant.
COUNCIL MEETING 15 APRIL 6, 2016
Councilmember Kuali`i: The last thing is that so now if there are
these additional detached units that could be rented out affordably—it would be
nice to have some kind of requirement—to local extended families who are
overcrowded, how are we going to make sure that is how it is done and that this
does not become additional illegal TVRs in regular communities that do not want
visitors, outside of the Visitor Destination Area (VDA)?
Mr. Hull: Illegal TVRs will always be a potential, no
matter where you have density and dwelling, period. I think the Council can rest a
little bit easy when you actually look at Airbnb and VRBO websites. There is not
much demand for TVRs in Lihu`e. There is a handful that the department is
actively investigating. The vast majority of TVR operations are outside of the
Lihu`e area, so to speak, and this Bill is currently reserved solely for the Lihu`e
area.
Councilmember Kuali`i: I lied. I have one last one. Does the Lihu`e
area limit to just this area or does it include Hanama`ulu and Puhi?
Mr. Hull: Forgive me, it includes Hanama`ulu, Lihu`e,
and Puhi.
Councilmember Kuali`i: Okay. Thank you.
Council Chair Rapozo: Councilmember Kaneshiro.
Councilmember Kaneshiro: I have a question on the tax category, and I
do not know if you can answer this, but what is the intent? Is it to keep it as a
homestay? It seems like it would be more of a commercialized home use because
you are renting it.
Mr. Hull: Yes, the portion for the tax section where it
would be exempt for tax assessment for up to five (5) years or under Chapter 5A is
in looking at an incentive package. The Administration intends to propose an
incentive package in which essentially incentives are proposed either via tax credits
or potential infrastructure waivers. We have to apologize that they did not come
exactly across in tandem. This Bill had to be reviewed by the Planning Commission
and they took action. We had a time line to get it to you folks. We do intend to get
you an incentive package for ARUs shortly. We have a scheduled meeting coming
up on Monday with the task force. It was really working with the entire County
like the Department of Water, the Housing Agency, and the Department of Public
Works Waste Water Division. We have one last task force meeting, which we
intend to shoot up an incentive package. Part of that may be a possible tax
incentive and this was meant in discussions with the Real Property Tax Division.
We would first have to establish somewhat of a bridge on the Section 10 side, but
then the ultimate package comes later on with an amendment to Chapter 5A itself,
should that happen. We are not quite there, but we are almost there.
Councilmember Hooser: We have been talking about this for several
months now about this very point of how do you preserve that affordability and
what the tax implications are. The thought is if the primary homeowner or the
homeowner rents their additional rental unit at the affordable rates as established
in the ordinance now, they would all get the same homeowners exemption, just like
COUNCIL MEETING 16 APRIL 6, 2016
they get now. They would not go to commercial home use. So that would be a big
incentive to keep that property in an affordable status, rather than rent it out and
have their taxes go up. That is just one, but there are many other incentives. I will
save my comments, but I just wanted to point that.
Council Chair Rapozo: Councilmember Kaneshiro.
Councilmember Kaneshiro: I was confused because it said, "It shall be
exempted from Real Property Tax Assessment, pursuant to those exemptions in
Chapter 5A."
Council Chair Rapozo: Can you answer that? I have the same
question.
Councilmember Hooser: The Administration is talking about
incentives, so the history of this measure...in Honolulu, they introduced something
kind of similar and we have taken that and have been making it better, much
better. But the experience in Honolulu is there has not been an
overwhelming...there are not too many houses...I want to say forty (40) or
something and they did the whole county of Honolulu. Incentives are necessary if
you want to drive any real success. In my opinion, real success might be one
hundred (100) units. If we had one thousand (1,000) units, that would be one
hundred million dollars ($100,000,000) in the economy and that would be huge. But
if we had fifty (50) to one hundred (100) units, that is still pretty significant for not
expending any county funds at all. That particular provision is intended to say, "If
you build this additional rental unit and if you rent it out as affordable guidelines
per the ordinance that exist now, then your property is not assessed, that new unit."
If it costs you fifty thousand dollars ($50,000) or eighty thousand dollars ($80,000)
but adds that value, that assessment is deferred as long as you keep it affordable for
five (5) years, I think, is what it says. That is an additional incentive if it saves you
one thousand dollars ($1,000) a year, and over five (5) years, it is five thousand
dollars ($5,000), which helps you pay for your water meter. Those are the kinds of
incentives that really help with that, adding additional incentives like fast-tracking
permits, water meter, or sewage. There are all kinds of ways we can incentivize
short-term to get people to build these and to rent them affordable. That is the
goal.
Councilmember Kaneshiro: So after the five (5) years, it would sunset
into whatever tax bracket we decide it is? Say if they are renting at low-income
rental levels and can afford renting at that affordable level, then it would be
considered homestead. If they are renting it for market value, then it might end up
being a commercialized home use tax bracket.
Councilmember Hooser: It could. That provision affects assessments,
so they would not be assessed, as long as they rent it affordable for five (5) years,
but then it would go to the proper assessment. If you increase your value from
three hundred thousand dollars ($300,000) to four hundred thousand dollars
($400,000)...yes, the assessment would be fixed for five (5) years, as long as you are
renting it out. Otherwise, it would just go to whatever the tax code is.
COUNCIL MEETING 17 APRIL 6, 2016
Councilmember Kaneshiro: I guess I am confused on what tax code it
would be considered because if you are adding a rental unit to the house, then it
would be a commercialized home use, which is way higher than a homestead rate.
Mr. Hull: Councilmember Kaneshiro, if I could
interject, there is still a lot up in the air and I do not want to confuse the situation.
It was kind of put as a placeholder in case we are able to work something out with
Real Property that could essentially, to a certain degree, waive an assessment or
give us an exemption of some sort. We are still in the process of that. In our
discussions with Real Property, they just wanted us to include this in case we come
to some consensus on a waiver of an assessment. I have to say that at this point in
time, we have not come to a final conclusion or consensus on how to establish that
type of waiver.
Council Chair Rapozo: So help me understand this. As it is written
right here, somebody could go out and build an eight hundred (800) square feet unit,
rent it out top-dollar, and be exempt?
Councilmember Hooser: They would have to rent it out at an
affordable rate.
Council Chair Rapozo: It does not say that.
Councilmember Hooser: It says per Chapter...
Mr. Hull: Council Chair, to clear up some of the
confusion, it was to set up to reference whatever was established in Chapter 5A and
if it is at an affordable rate in Chapter 5A, then that is where the waiver happens.
Yes, there is some confusion there and I think there will be more clarity provided
once we transmit over the incentive package.
Council Chair Rapozo: Right now, and Councilmember Hooser may
disagree, but the way I read it is if, "The new construction of an additional rental
unit shall be exempt from Real Property Tax assessment pursuant to those
exemptions established under Chapter 5A."
Mr. Hull: Currently, there is no exemption established
in Chapter 5A.
Council Chair Rapozo: Right. Right now, if I go out and build an
eight hundred (800) square feet mini-palace and rent that out for three thousand
dollars ($3,000) a month, I get that assessment waived in essence?
Mr. Hull: Theoretically, if this was passed today, it
would not be waived because there is no exemption established in Chapter 5A. It
was a placeholder for us to go there and put an exempting category in Chapter 5A.
I can say right now that we actually have not come to consensus and somewhat
prematurely, there is a strong chance that we may not come to consensus for an
actual exemption rate.
Council Chair Rapozo: To get an exemption in Chapter 5A would
require another bill. Is that what you are saying?
COUNCIL MEETING 18 APRIL 6, 2016
Mr. Hull: Yes.
Council Chair Rapozo: So actually "(h)" needs to come out.
Mr. Hull: Yes. Well no, the reason being is that in our
discussions with Real Property, they needed a reference in Section 10 referencing
back to Chapter 5A as well.
Council Chair Rapozo: Okay.
Mr. Hull: So they will work in tandem of each other
and I think some of the confusion really is our fault and I have to apologize for it
because were not able to get the incentive package over at the same time.
Council Chair Rapozo: Another question on "(g)" right above that,
any permits for existing structures that can be converted into an additional rental
unit shall not be required to pay an after-the-fact permit fee. Any existing structure
right now with these lot sizes would be illegal.
Mr. Hull: Correct.
Council Chair Rapozo: So we are going to say to the illegal ones,
"You are not going to have to pay the after-the-fact permit fee."
Mr. Hull: The intention of that is to try and get people
to come into compliance. If you look at the property owner's side and you look at
areas that are particularly problematic like Hanama`ulu, to say, "Can you folks
come into compliance?" There really is not much for them to say, "Why would I
come into compliance? Once I come into compliance, I am going to have to pay
higher taxes." So it is kind of saying, "For one (1) year, if you folks are willing to
come in, we will waive that after-the-fact fee."
Council Chair Rapozo: I can see waiving a penalty, waiving a fine,
or waiving the punishment, or if they come into compliance within a certain time,
but after-the-fact permit fee are County resources. I do not see how we give that
away. It costs money. I understand what we are trying to do here, but also, you
have people that maybe want to come into compliance, but they are afraid they are
going to get penalized. How much is an after-the-fact permit fee?
Mr. Hull: Five hundred dollars ($500).
Council Chair Rapozo: Five hundred dollars ($500). I pay five
hundred dollars ($500) basically for amnesty. I have to pay the fee...if I am the
person who is trying to be legal and I am coming in and not in this program, I have
to pay. I just do not get it. For me, to pay for the County resource, the County time,
and the County expense, they have to pay, and maybe we put in a provision that
any penalties will be waived if compliance is gained in twelve (12) months or
something like that. I can support that, but not just, "Hey, free."
Mr. Hull: As far as the waiver of fines, there is
discretion within the department to work within the fines, but the thing is that we
COUNCIL MEETING 19 APRIL 6, 2016
cannot go after fines after the illegal structure, unless we can thoroughly
demonstrate that the property owner is not willing to come into compliance. Under
Chapter 46, we have to first get the violator to come into compliance and if after
there is demonstrable evidence that they will not be coming into compliance, only
then and after then can we actually levy those fines and/or waive them. So with the
person coming in to try and come into compliance, that was just some dialogue and
discussion we had. At the end of the day, it is the Council's prerogative. As we
move into this, what we are finding and what we are seeing really is a balancing act
to try and spur on as much of these units to come online, as well as to make sure
that there are regulations to ensure that there is no abuse going on. But also
recognizing the further regulations we put on, the more barriers to entry and the
likelihood of these folks building those units is less, but it is a fine balancing act,
Chair.
Council Chair Rapozo: As far as the water facilities charge, how far
away are we from get some kind of resolution from the Department of Water or
some kind of word? Do you know?
Mr. Hull: I do not sit on the board myself; the Director
sits on it. I know that the board is debating a differentiated rate schedule for types
of units. Exactly what the likelihood of passing that is, I am not sure myself.
Council Chair Rapozo: Okay. Councilmember Yukimura.
Councilmember Yukimura: First of all, thank you for the work on this,
both on the part of the introducers and Planning and Housing, because we are
needing solutions for our housing problems and to engage the private sector is a
very good thing to do, as long as we can find that balance. The way the Bill is
written right now, your controls are on size and prohibition against CPR so that if
someone does...is there something else?
Councilmember Chock: Region.
Councilmember Yukimura: And it is in the area where we want more
residential growth and more compact growth. Thank you. There is nothing to stop
somebody from building a unit under this law and renting it at a higher rate, right?
Mr. Hull: Currently, that is not in this Bill.
Councilmember Yukimura: Okay. After five (5) years, say we waived the
FRC, which is the capital cost of our water system, right? It is the cost of building
all the tanks and the lines that delivers water to the individual house and it is done
by a fee study that divides the cost up, so somebody else has to pay for that. Yet,
after five (5) years they can rent it out...I mean they can rent it at a much higher
cost than affordable cost. So there is no guarantee that it will be affordable, either
within the first five (5) years or certainly after that when the incentives kind of
expire. But they can never CPR it?
Mr. Hull: They cannot CPR it.
Councilmember Yukimura: That is full-on. To me, the prohibition
against CPR makes it more likely to be an `ohana unit because it can then rent to
COUNCIL MEETING 20 APRIL 6, 2016
the young adult/child who is not yet ready to go off. We have a lot of that or it can
be rented as a granny unit for aging elderly and it does not foster all of these
problems that occur when you have separate ownership of property that is very
close to each other like common driveways and all of this stuff. I think that is a
very good feature. The only other thing is the...the question is you said that there
are many scenarios that would not allow this Bill to work. You mentioned as one, I
guess, covenants that prohibit ADUs. Has there been any study or effort to figure
out how many neighborhoods in Lihu`e have these covenants?
Mr. Hull: Yes. We actually were working with the
Board of Realtors to garner that information. I do not have that on me. We do have
some data on that. Some of them also have those covenants in place; however, they
expired after twenty (20) years. So while you did not see that bill and those
covenants actually kind of reserve properties to later on...say you take advantage of
a bill like this that came along, you also have that scenario, but we can get that
information to you.
Councilmember Yukimura: It would be good if you had some kind of
prediction about how many houses are intended to generate, in terms of a goal in
this piece of legislation.
Mr. Hull: Probably the largest overlying factor and
why it is somewhat of an obstacle to figure out that number is that lot coverage is
probably going to be the biggest obstacle or barrier to entry for property owners to
build ARU units. We do not actually have any of that information digitized, so it is
not like we can create a Geographic Information System (GIS) layer that would give
us that data readily available to us. So it essentially requires a staff member to
literally pull every single permit for every single property in Puhi, Lihu`e, and
Hanamd'ulu to determine what the lot coverage is of each individual property to
determine whether or not they can take advantage of this Bill. That essentially is
the biggest problem in coming up with that number for you folks.
Councilmember Yukimura: I was thinking that in the budget in the
Mayor's speech there is this new effort to really begin to address the digitization of
our land use data and maybe Lihu`e could be the first place we start that so we can
begin to work with the 21st century tools.
Mr. Hull: I think the strides that we have made with
the ePlanReview, which makes it a lot more readily assessable, that information,
say lot coverage, is definitely moving that way. But we have forty (40) or fifty (50)
years of backlog of applications that are paper. It just requires that individual kind
of touch to it.
Councilmember Yukimura: Real Property Tax does not have that
information?
Mr. Hull: They have, to a certain degree, structural
information, but they do not have a build out analysis of lot coverage. They will not
be necessarily recording all of the lot coverage in impervious surfaces.
COUNCIL MEETING 21 APRIL 6, 2016
Councilmember Yukimura: Okay. You say that one of the biggest
obstacles is lot coverage and I would guess that water infrastructure is another
serious obstacle.
Mr. Hull: In our discussions with the Department of
Water, there are a fair amount of water meters available for development, so to
speak. I know that is not exactly accurate, but there is a fair amount of water
available for development here in Lihu'e already, the barrier to entry being that
FRC cost, that relatively high FRC rate that they are going to have to burden upon
the construction.
Councilmember Yukimura: So how many water meters are available in
Lihu'e?
Mr. Hull: I do not have the specific number. We can
see if the Department of Water can generate that specific number because it varies
in a sense that if they could classify there are "x" amount of water meters available
for single-family dwellings, ARUs, and commercial developments, but because there
is a mixture of those types of things that come online, I do not have that readily
available, but I can reach out to the Department of Water.
Councilmember Yukimura: That would be useful. Thank you.
Council Chair Rapozo: Councilmember Kagawa.
Councilmember Kagawa: Did we copy the City and County of
Honolulu's bill? It is similar?
Mr. Hull: There are a lot of similarities, but there were
a lot of things that we removed from it, seeing that there would be a lot of barriers
to entry, and quite frankly, some of the press releases that have come out of the
City and County have demonstrated that they just recognized that they put too
many barriers to entry into their bill.
Councilmember Kagawa: How long has it been in place?
Mr. Hull: I believe two (2) years or one (1) year.
Councilmember Hooser: Less than one (1) year.
Councilmember Kagawa: Less than one (1) year and so far they have
forty (40)?
Mr. Hull: They have forty (40) applications. I believe
they had seven (7) units built.
Councilmember Kagawa: The Garden Island did an article saying,
"Well, if this Bill passes, we will cure the Lihu'e affordable housing." So hold your
horses there, The Garden Island. It is not there yet and the Bill needs to be worked
on because it is not that simple. Let me get to Molokoa. That was built in the '50s
and '60s, right here, and they had covenants; ten thousand (10,000) square foot lots
and no ADUs. But I am seeing some ADUs now and I believe the old covenant must
COUNCIL MEETING 22 APRIL 6, 2016
have expired. So the County ADU law of ten thousand (10,000) square feet is being
utilized, right?
Mr. Hull: I do not know specifically about Molokoa, but
there are areas indeed where the covenant has expired. I will also be clear in the
sense that should we get an application for an ADU currently, and it is an area that
has covenants that restrict ADUs, we are required by law to sign off on that permit.
It is up to the association to enforce a private covenant. The Planning Department
of the County of Kaua`i cannot enforce private covenants.
Councilmember Kagawa: I guess that is my problem. A lot of these old
residences, when they bought it, they bought it with the understanding that they
would have one (1) house next to them, period. Then the County superseded that
because their covenants expired and allowed if you have over ten thousand (10,000),
so almost all of the lots can now put an ADU. Some are starting to pop up and a lot
of them still want to protect and respect that original intent. Now, we are going to
further delineate and reduce that amount and create more chances...I think we are
forcing upon these owners that have bought it fifty (50) to sixty (60) years ago that,
"Well, because we have an affordable housing crisis, we are going to open it up and
possibly create a neighbor that you would never have if we did not pass this." Is
that possible?
Mr. Hull: Slightly, Councilmember. The other part of
it is that the association always has the ability to reinstate those. (Inaudible)
homeowner's association, you can re-amend your bylaws to ensure that those
covenants are still in place are no longer prohibiting further ADU development in
the area. I would say if there is that concern of a particular community or
particular neighborhood, then they need to really bring that to the association.
Councilmember Kagawa: Does Kapa'a and Wailua have an affordable
housing shortage?
Mr. Hull: My understanding is that all of Kaua`i has
an affordable housing shortage.
Councilmember Kagawa: So why is this Bill not for the whole island?
Mr. Hull: In discussions with the various agencies
where there is infrastructure available, be it water as well as wastewater and to
look at leaning on some of the policies set forth in the Lihu`e Community Plan, but
it is not to say should this essentially work here in Lihu`e that it could be afforded
to other parts of the island as well.
Councilmember Kagawa: Honolulu did the whole island and they got
seven (7) in one (1) year. How much is Kaua`i going to get if we are copying the
same bill? Anyway, I am kind of hesitant because I do not know why we are
rushing. We do not even have the real property tax stuff in place. Let us not follow
that "ready-fire-aim" on something like this. Seeing that Honolulu is struggling
with it, we should go slowly.
Mr. Hull: Councilmember, that point is well-taken and
we need to understand the various implications. When we did take a very close look
COUNCIL MEETING 23 APRIL 6, 2016
at the Honolulu ordinance, we immediately saw some areas in our insight that
there were going to be problems getting things online, and to a certain degree
Honolulu officially recognized those in the past few weeks. When we are speaking
about affordability...the other side of it is...that is why I am using the term "the
balance act" because we do want to make sure that these are for local workforce
residents. By holding the affordable housing requirements on them, as it is laid out
in the Affordable Housing Ordinance, indeed that assurance is made, period. The
flipside of that is that there is a possible additional barrier to entry in which
individuals would be unwilling to build units if they are held to that requirement.
So the other side of this ordinance is really about inventory. Much of the reason we
have such a high cost for housing units here on Kaua`i is inventory alone and part of
this is to spur that inventory. As inventory rises up, the price begins to lower.
Indeed, I can heed your folks' concerns about making sure and regulating it to
ensure that it is just going for the workforce housing, but we would also caution to
say that overregulating it ensures that nothing happens as well.
Councilmember Kagawa: My final request is if we can have some type
of map and the potential in every area that does not have covenants for this to
occur. I would feel more comfortable if I see some numbers. From there, I could
have staff or Housing do some assumptions. Thank you.
Council Chair Rapozo: Councilmember Yukimura.
Councilmember Yukimura: There is another wrinkle to all of this in
terms of covenants because I believe associations can be found to have waived
covenants by not enforcing. So if it goes as far as the court, that finding can
essentially establish that the covenants do not have any effect, even though the
expiration date has not occurred. That is not always easy to determine, but I think
that has happened many times.
Council Chair Rapozo: Councilmember Kuali`i.
Councilmember Kuali`i: Ka`aina, throughout the conversation, there
was a lot of...I do not know if"challenges" is the word, but a lot of indication that we
are not ready to get this done. You used words like "prematurely," "placeholder for
now," "we are waiting on a lot on the Board of Water Supply," and "we are waiting
on Real Property Tax."
Mr. Hull: Actually, Councilmember, those statements
were made in reference to the incentive package. As far as the land use entitlement
package...the land use entitlement package is...
Councilmember Kuali`i: But would the Bill be effective without any
kind of incentive package? You are talking about minimizing the restrictions
because you do not want to make it overly restrictive because then nobody will do it,
but on the flipside of that, you need these incentives, right? How long is it going to
take to figure that all out?
Mr. Hull: We anticipate having a draft for you folks in
the next couple of weeks essentially.
Councilmember Kuali`i: So it is weeks, not months.
COUNCIL MEETING 24 APRIL 6, 2016
Mr. Hull: Yes.
Councilmember Kuali`i: Okay.
Council Chair Rapozo: Councilmember Kaneshiro.
Councilmember Kaneshiro: We talked a lot about obstacles and I guess
for me, I would think the biggest obstacle comes down to, "Am I able to afford to
build this unit and have somebody rent it and still have it make sense?" I ran
preliminary numbers. You build a four hundred (400) square feet unit at one
hundred eighty dollars ($180) a square feet. If somebody wants to give me more
up-to-date numbers, I am more than open, but that seventy-two thousand dollars
($72,000)—you rent your four hundred (400) square feet, 20x20 for one thousand
five hundred dollars ($1,500) a month and it is a four (4) year pay back just to break
even on your unit. That does not include if you have this water fee or anything else.
Then we struggle with how we are going to make it affordable. So if they have to
rent it at an affordable rate, then your rent is even lower and your payback is even
longer. I would be more interested in continuing to see this type of thing because I
do not know about O`ahu, but I am thinking that if it does not make sense
financially to do it, then people are not going to do it. For me, where is the incentive
to build an extra four hundred (400) square feet unit and rent it if your payback is
four (4) years? If we do an affordable housing requirement, then your rent is even
lower and your payback is even longer. So I do not know. That is just the analysis I
am going through and would like to see as we move forward.
Mr. Hull: Yes, Councilmember. That point is
well-taken. Given just the overall construction costs, and then when you look at
sometimes up to twenty thousand dollars ($20,000) to twenty-five thousand dollars
($25,000) of just payments to various infrastructure requirements, what is the
incentive to build one of these units, which is why the department does not
anticipate many standalone ARUs to be built? We really do not, given exactly what
you have said. There are so many barriers to entry and the costs there is
prohibitive. What we do anticipate, if anybody is taking advantage of this, is the
vast majority are going to be internal units, in which they are converting, say
two (2) bedrooms; converting one (1) into a kitchen and throwing a stove and a sink
into it and having a bedroom next to it, which those costs are much more nominal
compared to new structure costs. We anticipate the vast majority just doing
interior renovations to these units, combined with the fact that the lot coverage is
going to be a barrier to entry. It is more than likely that a lot of these people could
not put a new structure even if they had the upfront financial capacity to do it.
Councilmember Kaneshiro: As a follow-up, it makes your calculation on
who can do it even more confusing and lot coverage does not make a difference if
they are just going to put that extra bedroom, bathroom, and kitchen in the interior
of their unit.
Mr. Hull: Correct.
Councilmember Kaneshiro: It is kind of hard to determine.
Council Chair Rapozo: Councilmember Chock.
COUNCIL MEETING 25 APRIL 6, 2016
Councilmember Chock: I just have a follow-up on that scenario of
breaking down a wall and doing an addition, rather than a separate unit. We have
kind of talked about numbers as well and they vary a little bit, but you said that
there is a big variance in terms of the fees and what a person would be paying for it
or what a landowner would be paying for it. What kind of differences are you
talking about?
Mr. Hull: We can get those numbers for you. I would
be hesitant to actually give those numbers, because I would like to talk a bit more to
the contractors association. Putting an additional unit and knocking out a wall is a
lot less than building a separate unit. I would be hesitant...I know I had
discussions with some of you folks outside of the Council Chambers on what we
estimate, but I want to actually get an official estimate from contractors.
Councilmember Chock: When the accompanying bill comes forward,
I think what would be good is to give those kinds of scenarios. We talked about
specific floorplans to look at and what those costs would be. That way, people would
have an example of what is attainable. I think it is going to make a big difference in
the long run. That is important for us to look at as we move forward. Thank you.
Council Chair Rapozo: Councilmember Yukimura.
Councilmember Yukimura: I am very intrigued by the issue of what you
call "internal improvements" because I have been thinking about Lihu`e in
particular where we have a lot of long-term homeowners, who had the house, it has
three (3) bedrooms for when they had a family with two (2), three (4), or four (4)
kids, so this house made a lot of sense. Now, there is just maybe one (1) or two (2)
elderly living in them and a lot of space that essentially is not being used. If this
could be an incentive to stimulate those internal changes without too many costs, it
could be a really good thing to have a couple of households in a fairly compact
development, converting existing infrastructure into the next use, if you will. So
that is great. Now the affordable housing tax incentive is geared to an eighty
percent (80%) of median income. Is it not?
Mr. Hull: Well, the affordable rate, as I understand it
under the Housing Ordinance, you can go up to one hundred forty percent (140%) of
the median income of a family of four (4).
Councilmember Yukimura: I do not think so.
Council Chair Rapozo: For the tax?
Mr. Hull: No, like I said, for the tax side of it, it has
not been set yet. It is referring to a section that may be amended, but we do not
have that package yet.
Councilmember Yukimura: Yes, but if you just take the existing tax
benefit that is in existing law, I think it is hinged to eighty percent (80%). We could
hinge these single-family conversions to maybe slightly higher, given that there is
private sector need. I would not want to do that in every case because as we
discussed on the floor, it will leave behind the eighty percent (80%) and below
COUNCIL MEETING 26 APRIL 6, 2016
because people will put it to the highest level, especially in this kind of rental
market. Maybe we do it for eighty percent (80%) for the first five (5) years, and
then allow it up to one hundred forty percent (140%) for the next twenty (20) or
whatever. We could kind of be creative that way. You could even give deeper tax
breaks for those who open their homes to homeless.
Council Chair Rapozo: Any other questions for Ka`aina? If not,
thank you very much. I do not know what the affordable housing guidelines would
be for a four hundred (400) square feet unit or an eight hundred (800) square feet
unit, but I am assuming it would be quite low at the eighty percent (80%), very low,
I would believe. Anyone in the audience wishing to testify? I am going to take the
testimony on this communication. When we get to the Bill, this is your opportunity
to speak. You will not be able to speak on the Bill. Anyone wishing to speak on this
now? Mr. Taylor.
KEN TAYLOR: Chair and Members of the Council, my name
is Ken Taylor. I find it interesting having this conversation at this time. I lived
most of my life in a vacation rental community and this discussion has gone on clear
back to the `60s and still going on today back there, but I think you are trying to put
a band-aid on a problem that needs to be addressed. Henry Ford once said, "Most
people spend more time and energy going around problems than trying to solve
them." I say that because we recently spent around three million five hundred
thousand dollars ($3,500,000) buying a piece of property down here and when we
built it out as an affordable housing project with twenty (20) units per acre, which it
should have been thirty (30) or forty (40). Affordability comes with density and I do
not know if the community is ready for the density that we need to be looking at,
but it is an issue that has to be wrestled with. Instead of putting band-aids on the
community, which I believe this Bill is a band-aid, what you need to do is go out
there and rezone for thirty (30), forty (40), to fifty (50) units per acre, and then you
will solve some of your problems down the road. But this band-aid is ridiculous and
it is never going to solve the problem. Again, the County has been its worst enemy
on affordability. Rice Camp was one example, but what are we getting out of the
approval of Kaua`i Lagoons? We basically are going to end up with seven hundred
fifty (750) high-end houses and not one (1) affordable unit. Even though they were
required to build them in the first place, they all disappeared over a period of time.
So we got absolutely nothing for our decision to move forward with approval of that
project. This is the kind of thing that needs to be addressed and stop playing this
little game of putting band-aids on a problem. Let us solve them. Rezone the area
from here over to Walmart and some of the new stuff that is being looked at down
below. Instead of single-family units, put multifamily units in there at a higher
density. That will solve the problem. I guess my time is going to be up here in a
second. Do I get my extra three (3) minutes?
Council Chair Rapozo: After everyone else speaks. Anyone else
wishing to speak? Mr. Rosa. Mr. Taylor, after everyone speaks, you can have your
second three (3) minutes.
JOE ROSA: Good morning. For the record, Joe Rosa. I
hear these so-called "engineers" and "planners" coming here and speaking—I am
not an engineer, but I can speak on common sense and save dollars. Before these
planning people plan anything, get the infrastructure made. Go with the State of
Hawai`i Department of Transportation (HDOT) and find out what the highway
COUNCIL MEETING 27 APRIL 6, 2016
plans are before you put something in and you hit a stumbling block. What kind of
engineering do you have around here? I have been living here all my life and the
plan from Amfac properties was light industry business from Kuhio down to the
ocean...up that residential. It made a lot of sense. When you people think about
what I am going to say right now is that I could see why they wanted business and
industry down in this area. I look at you and everybody looked amazed. The reason
was stated light industry and business makai off Kai-6 Highway because there was
a harbor, an airport, and a stadium. People are already complaining. Kupolo—I
know when I was working with the HDOT, we worked at night...the people in
Kupolo complain about the noise. The airport is here to stay. Where are you going
to put the aiport? Are we going to change it because people said there is too much
noise? It is not an area for residential already. It is surrounded by businesses like
`Elua Street over here. Residential is "no-no" in this area. Up mauka, it is fine.
From Kuhio up to Kilohana and Wai`ale`ale if you want to go for residential. This
area was for light business and industry. So before these people plan...do anything
for making affordable housing or housing available, check with the State
Transportation as to what are their highway plans. I always hear about widening
up Kuhio from Hanama`ulu to Kapa`a. Think how much is going to be involved to
just widen that when they can go mauka on virgin land up there and get a cheaper
highway made because you also think of things involved in the Wailua stretch.
How many power poles are going to be moved at the cost per pole and how are they
going to fill the canal adjacent to the road. Can they get material from the
landscape? There is money involved. I do not know what kind of engineers or
planners you have in this County.
Council Chair Rapozo: Mr. Rosa, that is your time.
Mr. Rosa: That is the kind of thing I want to leave with
you people. Before planning, get the infrastructure done first.
Council Chair Rapozo: Anyone else?
GLENN MICKENS: For the record, Glenn Mickens.
Council Chair Rapozo: We welcome suggestions for solutions if you
have that as well.
Councilmember Hooser: Chair, thank you for pointing that out.
Council Chair Rapozo: I feel like a punching bag.
Mr. Mickens: The bigger thing like Councilmember
Kagawa said is that we have to stop this "ready-fire-aiming" and look at big picture
like Ken and Joe jus said. Look at the big picture. Do not just incrementally do one
little section here, one little section there, and then we find out we are wrong, as we
did forty (40) years ago. We did not do anything about putting that road like Billy
Fernandes wanted over the power line road. He suggested that. I guess the
business association fought it and said it was going to make ghost towns, which was
ridiculous. Today we sit here, jammed up in traffic and stuff. The big picture was
not looked at. Like you said, Council Chair Rapozo, there is going to have to be a
solution, but the solution is like is what Ken said, just putting a band-aid over on
top of a ruptured artery someplace. That is not going to do it. These planners keep
COUNCIL MEETING 28 APRIL 6, 2016
on coming back with these plans that they sit down with, but I do not think they
practically go out and look at the huge picture of how it is going to affect everybody.
Thank you.
Council Chair Rapozo: Thank you, Glenn. Anyone wishing to testify
for the first time? If not, Ken.
Mr. Taylor: Chair and Members of the Council, Ken
Taylor. The other thing that you have to remember as you move forward with this
kind of situation is that basically every unit costs somewhere between forty
thousand dollars ($40,000) to sixty thousand dollars ($60,000) in infrastructure
need. I realize that this goes down some when you have some of the existing
infrastructure in place, but that infrastructure costs money and new people need to
pay into the system, but the other density also lowers those numbers somewhat. If
new construction does not pay for the infrastructure needs and there is a lot more to
it than just a house—every fire department, police department, park and recreation
areas, and so on are all based on so many people per thousand square feet of
facility, or in case of Fire and Police, you have so many policemen and firemen per
one thousand (1,000) people and so on. That all has to be considered. If it is not
considered and when you are looking at affordable housing, it is then affordable
housing to whom? Who is going to pay for that infrastructure that needs to be
addressed? Again, you have a problem with the budget. You do not have the money
for a lot of things, and every new unit that you approve or consider approving comes
with a cost. We have often times overlooked that, and then down the road say,
"Gee, we need money." We need to raise taxes because we screwed up back then,
but we do not always talk about screwing up back then. So let us do it right, rezone
the area that needs to be addressed, and get the quality and quantity of affordable
housing in this area. I raised these issues when the discussion took place here...I
think it was in 2010...about the core plan for Lihu`e. It was not dense enough to
solve this problem and make the activity work in this whole area. It requires
people. If the community is ready for that kind of density, then move forward with
it. Let us not play games with this kind of band-aid on it. Thank you.
Council Chair Rapozo: Anyone else? Mr. Rosa.
Mr. Rosa: For the record, Joe Rosa. As I was stating, it
will before these Planning Commission people, planners, or engineers should look
into the overall...the noise problem that the airport creates. It is not a suitable
place for residential in this area already. The stadium—the people who live down
there...when they have the county fair, they say that they wished the county fair
gets out at 10:00 p.m. because they want to sleep. It is not a place for residential
anymore, and yet Grove Farm came out with some plans to put some fancy housing
by Ahukini, where the refuse station is. What about the dump over there that the
County has? The smell is going to come out of there. Do you think it is a suitable
place for residential housing? Right now, Molokoa is surrounded by businesses
already and that corridor down by the stadium and police station closes up, they
will be surrounded. If the Walmart area gets developed in the back, they will be
surrounded completely, and then they are going to wonder why their property taxes
are all so high. It is in a business zone area. It is common sense. I never went to
college, got a degree, and become an engineer, but it is common sense. Look at what
is around you. Do not just go and build and build, and then you find problems with
the infrastructure. We would not need buses if they had to complete Kapule and
COUNCIL MEETING 29 APRIL 6, 2016
the mauka (inaudible). It was politics, like Glenn Mickens mentioned. Somebody
starts something and there is a clique that some politicians worked with Grove
Farm...excuse me, I have to mention Grove Farm because that is how Kaua`i
Community College came there. This won the deal, so KCC did not go by Wailua by
Smith's. I can tell you history, that some of these people...I am disappointed...the
paper they got in college did not serve them well. It is plain common sense. I have
lived with the problems around here and I have grown up when Amfac was the
owners of the land, they were the developers, because they had their plans for the
future, not like we have visions here, 20/20, and nothing is done because you do not
follow the priorities of what you talk about. Talk is cheap, but to execute and get it
done for the people's benefit is not being done. Think about it. I am not coming
here for my health to say something, but I am trying to save taxpayers and myself
money. Even when they talk about low-income housing—what is low-income
housing? In 1962, I was able to buy...
Council Chair Rapozo: Mr. Rosa, your time is up.
Mr. Rosa: In 1962, I was able to buy a property as a
single guy, but today I do not think anybody can buy property with these ridiculous
prices that they have. Thank you. I can still say a lot more.
Council Chair Rapozo: I know you can. Thank you. Anyone else? If
not, I will call the meeting back to order. Councilmember Hooser.
There being no objections, the meeting was called back to order, and
proceeded as follows:
Councilmember Hooser: Thank you, Chair. I wanted to commend the
Administration for all of their work and also the Planning Commission, who have
already gone through this and had a number of meetings. I compliment you on your
comment, Chair, that the public and everyone should solutions, not just criticize
and bang on proposals that are put out. Frankly, I was a little surprised at the
degree of criticism for this being first reading. I think we should take our time and
look at it, look at the positives and see it for what it is. It is not a solution, but it is
an opportunity to add at no cost to the County taxpayers, significantly at least,
inventory and just inventory in an area like Lihu`e where local people live. It is not
a tourist destination. It is not like we are doing this or trying this in Kilauea, the
north shore, or the south shore for the risk of high-end retirees or investors. Yes,
they may want to live in Lihu`e, too, but it is a lot less likely. I want to also
commend Councilmember Chock. He and I have been working on this. We started
with the conversation, "What can we do to make Kaua`i a better place? What are
the main issues that we need to address that we can do something with?" So we
talked about affordable housing and we said, "What can we do?" We looked and saw
what some others were doing and said, "Well, that is not really our model, but
maybe we can learn from that." We met with the Managing Director and she said,
"This matches the Lihu`e Community Plan. It says that the Lihu`e Community Plan
calls for additional density and additional infill and is being designed where its
highways are a walkable community. This might be a good place to approach that."
So it came through collaboration and I wish we could have all collaborated and come
to this point today. But because of the Sunshine Law, only two (2) of us are allowed
to meet and speak. The public may not know it, but it is against the law for four (4)
of us to go into your office and talk about issues. That is flat-out against the law.
COUNCIL MEETING 30 APRIL 6, 2016
So the two (2) of us worked together on it, along with the Administration, and the
staff has done a fabulous job. We came up with this proposal that has a potential to
add significant, new affordable rentals or rentals, period. They are not for sale;
they are rentals. I know people that live in Lihu`e who rent out a room, a studio,
but they do not put a kitchen in it because a kitchen is against the law. This allows
them to put "mom" and "dad" in a unit or "mom" and "dad" could put their children
in a unit, which is housing. That is the kind of housing we need. It does not allow
three (3)...if you already have one (1), it does not allow you to get a third one and
there are protections built into it. I know there are questions and I know there are
areas of this measure that need refinement; the incentives being a particular one,
and how do you ensure that this is going to be as much as possible used by families,
number one, and affordable rentals, number two. I think there are ways to do that.
I want to point out the economic development potential of it. If we are so lucky as to
get one hundred (100) houses, that is an equivalent of eight million dollars
($8,000,000), plus or minus, of economic activity. That is local economic activity.
That is not mainland contractors coming in to build one hundred (100) houses. This
is individuals building one hundred (100) houses and buying their materials locally
and hiring local people to build those houses. So the economic development impacts
are significant and the one hundred (100) homes spread throughout this entire
district is not going to dramatically increase density, traffic, or anything else. We
could try it in other areas, but Lihu`e has sewers, roads, and it is the kind of place
where this kind of proposal should start. I am looking forward to working together
and continuing to have the dialogue and looking for solutions; not "this is a bad
idea" and all the ways it will not work. I would like to look at how we make it work
because it has a real potential to adding important inventory into our housing
market. The community has been waiting far too long. We do not have the
resources. We do not have eighty million dollars ($80,000,000) or eight million
dollars ($8,000,000) to spend on housing. Even if we did, how long does that take?
How long does it take to do the unit...the projects that we are doing? This has
tremendous potential on many levels and I am hopeful that this Council will look at
it as an opportunity and not as something bad, but something good. The starting
point of our conversation with the Administration is already had, that we have
already talked to members of various community organizations, business
organizations, and the public are expecting us to do something and this is a small
step, but I think a significant step towards helping to put new housing on the
market. Thank you.
Council Chair Rapozo: Councilmember Chock, did you have
anything to add as a co-introducer?
Councilmember Chock: Yes. Thank you for hearing the Bill on first
reading today. I think that certainly it is not the "magic pill," but we need options.
I think Councilmember Yukimura will soon be able to tell us about the direction of
Housing and Transportation Committee and a lot of the efforts there. I think this
has been somewhat of a collaboration where people have said...enough people are
saying that this is one area that we should be looking at and we want to try and get
started. So the question about "why here, why just in Lihu`e" is because we already
have a community plan. It is slated for the density in this area and I think that we
have some things to learn from trying to move in this direction. If it is successful,
we could apply it to other areas that need the housing. So I look at this as a way for
us...I think the structure here that we have for this Bill is a good starting place and
I think the incentives bill is what I heard us talking about a lot today as something
COUNCIL MEETING 31 APRIL 6, 2016
that is going to need to be vetted properly, too, and definitely cannot be done
without it. I am looking forward to that. I wish that it was here for us today so that
we could look at it simultaneously, but it is not. While I was even looking at the
affordable rental aspect of it, we said, "We may have to amend it before it gets here
today." I think that if we can anticipate that this is coming forth, then we should
keep that in there until we have the full discussion on the incentives; everything
from the possibility of streamlining the process for owners to...sewage connections
that might be helpful. I think the right questions were asked about the FRC and I
would urge everyone who is interested in trying to get affordable units out there
through this venue that we work collaboratively, unified, to send a message to the
Department of Water that we need to look at solutions to get some of these units up.
I also appreciated the comment on how many can we actually materialize in this
region. When I first had this discussion, our former Housing Director Kamuela
Cobb-Adams said that if we can get thirty (30) units built, it would be a success. My
hope is that we can get more. So the covenants—we have been actually working
with the Board of Realtors to try and get that information. I think that it is going to
take a stronger push to try and see where we are with the possibilities, but I am
looking forward to getting some of those numbers that Councilmembers have asked
for, because it has been my question from day one, which is what can we get done?
With that, please consider the portions of this that I think will work. One is the
size and the region in order to not create speculative inquiries, but that it keeps this
kind of intention for local residents and the housing that we need in this arena.
Thank you, Chair.
Council Chair Rapozo: Councilmember Kagawa.
Councilmember Kagawa: Thank you, Chair. First of all, I want to
thank Ka`aina for answering a lot of our questions today. I want to state that a lot
of my questioning is my job. This Bill has serious ramifications. We talked about
the City and County of Honolulu's bill and how that is working over one (1) year,
and it is working very poorly. If only seven (7) have been approved over one (1) year
and they have one million people (1,000,000) and we only have around seventy
thousand (70,000)—to compare the City and County—again, we talk about the
differences. They do not have the fifty percent (50%) lot coverage requirement. I
have a good friend that lives on Lime Street, behind Ke`eaumoku and King Street.
They probably have lot coverage of about ninety percent (90%) on his property.
Again, what are we trying to do? Are we trying to go in that direction where we go
away from Kaua`i's rural character and say, "Well, fifty percent (50%) lot coverage is
not important; housing is more important." Everybody is different. Honolulu is
urban. Kaua`i is rural. Do we follow them in this area? Look at Puhi. Look at
Hanamd'ulu. Look at Molokoa. Look at Isenberg. Is it dense enough? That is the
question. Is the ten thousand (10,000) square feet requirement for ADU adequate?
It has been in place for forty (40) years. Is it working adequately? Those are the
kinds of questions that I have. Is it reasonable to have a five thousand (5,000)
square feet lot with two thousand five hundred (2,500) square feet of building on it?
Do we want to move in that direction? Or do we want to see how we can incentivize
existing ADU lots with ten thousand (10,000) square feet or more to build, and
really not change the character as much as something like this. Those are the
questions that I have. The Garden Island newspaper came out with a front page
article today telling the public, "Lihu`e has a solution today." I just want to say that
the solution has a lot of problems right now, so I would not say it is a solution. Let
us work out the problems, let us let the public have some input, and it will, but
COUNCIL MEETING 32 APRIL 6, 2016
seriously I think we have to make sure that when we compare Honolulu and Kaua`i
and what we want our island to look like and how we want to force zoning changes
that impact their existing properties, I think we have to go real slow, take our time,
and make sure that we are serious about the change that we are going to impose
because this is a huge change with huge ramifications. I say let us be very cautious
and let us ask the questions because that is our job. This is not a minor bill, this is
major; like Klayton Kubo said, "Majorly." Let us take our time and if we do it, let us
make sure that we do it right because I have some serious issues with this Bill, and
it is because I want to keep Kaua`i rural. No matter what the affordable housing
needs or whatever are, just because infrastructure is there, let us not do it
automatic. Let us spread out the infrastructure if you want to keep Kaua`i's
character rural. We spend a little more money; we keep it rural. Let us not save
money and turn it into urban. Those are the questions I have. It does not say I will
not support this Bill. It is a balancing act. There are positives and negatives and
we just have to weigh it all out. We have to answer all of the questions and see
what the numbers that we are talking about are. We should see a map saying
where all the possibilities for expansion are and have all of that data before we say
yes or no to something like this. And have all of these data before we say "yes" or
"no" to something like this. This is not a minor change; this is major change. The
ADU Bill has been in place for forty (40) years and this is going to change that ADU
almost in half. Instead of ten thousand (10,000), five thousand (5,000) you can do
an ADU. These are major implications of zoning. Thank you, Chair.
Council Chair Rapozo: Thank you. Anyone else? Councilmember
Kuali`i.
Councilmember Kuali`i: I just want to echo some of Vice Chair
Kagawa's comments. Obviously, there is a lot of work to be done. But as
Councilmember Hooser also said, the Sunshine Law preventing us from working on
this prior, so the two (2) of them got it started. Some of us also wanted to work on
it. So now it begins. This is where this body, the seven (7) of us, begin
collaborating. Obviously, there is a lot of work to be done and even Planning has
more work do. We need so many answers to so many questions from the Planning
Department, the Department of Water, Solid Waste Division, and the Real Property
Tax Division. It is odd for me that this is happening right in the middle of budget,
but we have to start at some point. It is a long-time problem, so let us get going.
We definitely have to take our time and work with Planning and everybody else. I
expect that we are going to be working on this for a while. So nobody get excited
that something gets solved tomorrow because this is a big problem and we need
everybody's help. Thank you.
Council Chair Rapozo: Councilmember Kaneshiro.
Councilmember Kaneshiro: Just a quick comment, housing is critical.
We need both regular housing and affordable housing. I think that there is just no
easy solution. If there was an easy solution, then we probably would have come up
with it already. I do commend the effort in this Bill. Again, I think it does come
back down to numbers. Does it make sense to build an additional dwelling unit?
Does my payback make sense? That is something that we need to be aware of. We
can do a bill, but if it costs somebody too much money to build and the rent is not
there and if we make them rent at an affordable rate—our tax break is not that big.
If you look at a five hundred thousand dollar ($500,000) house that has a homestead
COUNCIL MEETING 33 APRIL 6, 2016
rate, they pay one thousand five hundred dollars ($1,500) a year. If we are talking
about getting rid of the one thousand five hundred dollars ($1,500) a year, how does
that affect their numbers. I think as we go through this, that might be limiting
factor in why people are not doing it. So what other means can we do to provide
some type of incentive for people to add these units? We still have to be aware of
unintended consequences. Are we giving these guys so much that people that have
regular rental units are kind of...they are still providing housing, but they are kind
of not getting the benefit that these people are getting. That is the balance that we
need to weigh. As we go through this, we will have a lot more conversation on how
do we make this right so that people will actually do it. It will be interesting. It is
hard. I think it all boils down to costs. That is why you do not see much people
building houses, because it all boils down to cost. Can I build a house that I can
afford? Can I build a house that somebody is willing to pay for? If the costs are too
high, then people just sit on it and they are not willing to do anything.
Council Chair Rapozo: Thank you. Councilmember Yukimura.
Councilmember Yukimura: I want to thank the introducers of the bill. I
think it is a very important bill, addressing a very critical problem. I also want to
thank Planning and the Administration for working with the two (2)
Councilmembers who are introducing it. I am really pleased with this discussion on
first reading. I feel this is the kind of discussion we need to have. I sort of wished
that we had this kind of open-minded discussion on the fuel tax increase and the
vehicle weight increase, which was introduced just as a potential solution that
needed a lot of work. This Bill is an opportunity to produce housing without huge
government expense and I see it also as an opportunity to enable families and
individuals to provide housing for family members, friends, and community, just as
Councilmember Kaneshiro just mentioned, in an affordable way. As
Councilmember Hooser indicated, one hundred (100) houses will put eight million
dollars ($8,000,000) into the economy. It means also more specifically construction
jobs. As we have seen from Rice Camp, Kolopua, and Pa'anau, we have kept our
construction workers busy for months and sometimes years, doing things that our
community needs so badly, so it is a wonderful win-win. This Bill is not the only
solution, but I think it is part of the solution. I look forward to working with this
Council and other government agencies to craft a bill that is going to work well
without causing bad, unintended consequences, which is really our mission here
around the table. I am looking forward to the debate and work and a good bill in
the end.
Council Chair Rapozo: Thank you. Anyone else? If not, I want to
thank Councilmembers Chock and Hooser for this brilliant attempt, I think, to deal
with a very difficult problem. The bill obviously...we talk about "ready-aim-fire"-
"fire" is when we pass the bill. That is when the Mayor signs the bill and it becomes
law; that is "fire." We are at "ready-aim." This is the first part of that equation. I
do not know why we are getting blasted because we are trying. Councilmember
Kagawa brings up some very valid points that we have to address in this discussion.
Is that what we want to do? I will say that we need to address the affordability of
these units. I just looked on Craigslist while the discussion was going on and right
now, a thirteen (13) by thirteen (13) unit in Kapahi, one hundred sixty-nine (169)
square feet is eight hundred dollars ($800) a month. In Kapahi again, three
hundred fifteen (315) square feet is nine hundred fifty dollars ($950) a month.
Another one in Kapahi, three hundred (300) square feet, is nine hundred dollars
COUNCIL MEETING 34 APRIL 6, 2016
($900) a month. Then you move up to the bigger unit; six hundred thirty-three
(633) feet in Wailua is one thousand six hundred dollars ($1,600) a month. Another
six hundred (600) square feet unit in Po`ipu is one thousand three hundred dollars
($1,300); six hundred thirty-thee (633) in Kapa'a is one thousand seven hundred
dollars ($1,700); eight hundred (800) square feet in Wainiha is one thousand four
hundred dollars ($1,400); and seven hundred eighty-five (785) square feet in Lihu`e
is one thousand six hundred twenty-five dollars ($1,625). That is what is going to
happen if we do not put an affordability clause in this. The market will bear...the
people will pay with the market. Councilmember Kaneshiro is perfectly correct,
exactly right, where if you are going to build a home, you are not going to do it
because you want to help the community. You are going to build this separate unit.
You have to at least pay that thing off. So we have to make sure the incentives,
requirements for affordability, and that we remove all speculation from this because
it does come with a cost. If you go to Molokoa now...the new Molokoa...Molokoa III
I think it is called...you can hardly drive down that road because both sides have
cars on it. Let us say one-fourth of those homeowners decided to put an ADU or an
ARU; where are those people going to park? We have to be real careful when we
look at this. I know Ken said to just rezone the land, but I do not know what land
he is talking about. I am assuming it is the one from here to Hanama`ulu by the
airport, but that is already rezoned and that is private property. People are going
to do what they are going to do. I do not know if he meant condemn. Obviously,
that is not possible right now. There are a lot of things. Again, we are in the
"ready" phase. We still have to "aim." Councilmember Kuali`i talked about all of the
different departments that have to contribute. Obviously, we have to get the
Department of Water. Nobody is going to build a four hundred (400) square feet
unit and pay fourteen thousand dollars ($14,000) for water, whether they get a
meter or not. They are not going to do it. I believe with the eight hundred (800)
square feet unit as well. That is ridiculous. That is just insane. Anyway, that is
just one issue that we have to deal with. If the Department of Water cannot agree
to that to help the affordable housing issue, then I do not know if this Bill will work.
This is way too soon to say that this is a bad effort. If we had to vote on it today, I
probably would not support this Bill as written. I think that there are a lot of areas
that with the help of the Administration and the discussions on this body, we will
come up with something that will provide some additional units. I tell you that
when we talk about band-aid solutions—a good friend of mine has a wife and two (2)
children and he is being evicted from this home. This is not the same friend that I
talked about earlier; this is a different one. This guy has absolutely no where to go.
He is a local person, originally from Hawai`i island. He said that he does not have
family here. He does not have anywhere to go. So now he is scrambling and trying
to find jobs on Hawai`i island where he can move back home. He has called
everybody available and every ad from Craigslist and in the paper. He does not
have anywhere to go. The landlord is saying, "Hey, you have to move." I think he
would appreciate a band-aid fix because he needs a place. There is many like that.
I work with him at night and I heard him when he was talking to his wife on the
phone and this is where I realized we have a problem. He said, "Honey, there are
tents on sale at Walmart. Let us just go get a tent." He would appreciate the
band-aid fix. Him and his wife works hard and they have two (2) kids with no place
to go. Yes, Ken, we need the band-aid fix at times. Anyway, my time is up. Thank
you. Councilmember Yukimura.
Councilmember Yukimura: I really appreciate your graphic examples of
how we need housing and that is why that five million dollars ($5,000,000) that we
COUNCIL MEETING 35 APRIL 6, 2016
have asked the Legislature for, for Courtyards at Waipouli is so important. That is
eighty-two (82) families. We have to think in those really graphic, personal terms
about why it is so important to have this. Every little decision we make that moves
us toward housing or away from more affordable housing are decisions that we are
responsible for.
Council Chair Rapozo: Councilmember Hooser.
Councilmember Hooser: I want to compliment you, Chair, for very
eloquently talking about the urgency of the issue. It is fine to say "let us take our
time" when we have a house, but every home that we can help provide is important.
Thank you for saying that. Thank you also for pointing out the "ready-aim-fire"
analogy, because a lot of work has been done on this already, but this is the first
step in our process. I feel really hopeful that at the end of the day we will come out
with something really good and really positive and also significant; to make a
significant difference the housing situation in our community, after hearing what
everyone said about the need and about their willingness to work on this. Thank
you for that. Just a couple of things, I want to make sure that the facts are out
there in the community properly. There has never been any discussion at all with
regard to increasing lot coverage. No one has ever said that we think we should
increase lot coverage. That is number one. I think the provisions that explicitly
prohibit short-term rentals and explicitly prohibit CPRs really take the speculation
part out of what happens in an ADU environment, because they cannot sell these
units as they could a CPR right now. Third, there is a provision that mandate a one
off-street parking space. Is that enough? I am not sure, but there is a provision
mandating one off-street parking. I look forward to further discussions on this.
Thank you.
Council Chair Rapozo: Councilmember Kuali`i.
Councilmember Kuali`i: Chair, I too, want to thank you. I think you
did a good job of laying it out about incentives, affordability, and removing
speculation. I think we also have to add that ensuring that Planning or wherever in
the County has adequate enforcement to prevent the increase of any illegal
homestays and TVRs that might result from incentivizing this housing inventory
increase. We may just be creating more problems for ourselves unless we admit
that we have to stay on top of it by having adequate enforcement. Thank you.
Council Chair Rapozo: Thank you. Councilmember Kagawa.
Councilmember Kagawa: I just wanted to give my take on the lot
coverage. I just added one thousand five hundred (1,500) for a regular house on a
five thousand (5,000) square feet lot...one thousand five hundred (1,500) for a
regular sized house and through this ordinance, they would be able to build an eight
hundred (800) square feet unit; that is two thousand three hundred (2,300) of just
building. How is that not going to change the lot coverage? That is why I said that
we cannot copy Honolulu because Honolulu does not have a fifty percent (50%) lot
coverage law. I went to my friend's house and it is ninety percent (90%) covered
with cement. I do not see the rationale for comparing to Honolulu's sizes and
allowances for building when they have different lot coverage sizes. I am saying let
us make sure we check and do the due diligence before we even present the bill;
otherwise, we are wasting time.
COUNCIL MEETING 36 APRIL 6, 2016
Council Chair Rapozo: Anyone else? I do not know Ross' friend on
Lime Street, but I know people that live in that area, and to be honest, I do not
want Kaua`i looking like that. But likewise, I do not want Kaua`i looking like
Kaka`ako with all of these homeless people because they cannot afford places to live.
This is going to be a pretty interesting task. I would just say that the sense of
urgency should not trump common sense and practicality. We have to be
open-minded that we could have some unintended consequences that we need to try
to address. History has shown me, anyway as long as I have been on this Council,
and I can imagine that Councilmember Yukimura has been here much longer, but
people tend to abuse the system. People will do what they have to do to abuse the
system. Again, Councilmember Kuali`i talked about the enforcement. If we are not
on top it, then we create another monster...a whole other monster. So we have to be
real careful and we will take our time. I would ask the Administration to expedite
what they need to do so that we can get the discussion here and we can have all the
answers to our questions so we can move on this because I do believe it is urgent. I
agree that we should not be rushing, just because. I would guess that the majority
of the people that would use this would not need new construction. I think it would
be those who have existing structures or existing illegal structures that it is an
opportunity to do two (2) things: become legal and create a unit for rent. I am
hoping that would be the case. We will see how this one goes.
The motion to receive C 2016-86 for the record was then put, and
unanimously carried.
Council Chair Rapozo: At this time, we will take a caption break.
We will be back in ten (10) minutes.
There being no objections, the meeting recessed at 10:29 a.m.
The meeting reconvened at 10:45 a.m., and proceeded as follows:
Council Chair Rapozo: The meeting is called back to order. Can we
have the next item, please?
JADE K. FOUNTAIN-TANIGAWA, County Clerk: Chair, we are on page 4.
C 2016-87 Communication (03/15/2016) from the Acting County Engineer,
requesting Council approval of an unbudgeted purchase of Sewer Line — Rapid
Acoustical Testing (SL-RAT) survey equipment, at an estimated cost of $25,000.00,
using unexpended funds anticipated in Account No. 502-2061-642.43-06 (Sewer
Fund, Department of Public Works, Wastewater Division, Contractual Repairs,
Island-wide Collection System Acoustical Survey), to allow the Wastewater
Management Division staff to assess the County's gravity sewer system, focus sewer
line maintenance efforts where blockage is indicated, identify sewer line segments
for cleaning and resurveying to verify the effectiveness of cleaning, and establish
scheduling for future cleaning: Councilmember Kuali`i moved to approve C 2016-87,
seconded by Councilmember Kaneshiro.
Council Chair Rapozo: Any discussion or public testimony?
Councilmember Yukimura.
COUNCIL MEETING 37 APRIL 6, 2016
Councilmember Yukimura: Can we have Waste Water Division come up?
Council Chair Rapozo: Yes. Can you come up, please? I will
suspend the rules.
There being no objections, the rules were suspended.
LYLE TABATA, Acting County Engineer: Good morning, Council Chair
Rapozo, Vice Chair Kagawa, and Members of the Council. Lyle Tabata, Acting
County Engineer.
Council Chair Rapozo: Do you have any questions for them? Like
the Police, you provided a very detailed presentation, so that is good.
Councilmember Yukimura.
Councilmember Yukimura: I just thought for the viewing audience if you
could just briefly explain what this could do and why it is important to you.
Mr. Tabata: I will let Ed Tschupp, our Chief of the Waste
Water Division go through the details.
Councilmember Yukimura: Thank you.
EDWARD TSCHUPP, Chief of Waste Water Management Division: Good
morning, Council. I appreciate the opportunity to be here. For the record, Edward
Tschupp, Chief of Waste Water Management Division. A couple of years ago, we
heard of a new tool, new technology that has been developed. It has the cute little
acronym "SL-RAT" which stands for "Sewer Line — Rapid Acoustic Testing." So it is
"SL-RAT," Sewer Line — RAT. It had been piloted in papers written in cooperation
with the United States Environmental Protection Agency (EPA), and what basically
it is an acoustical tool, so it has a series of tones and there is a transmitter and a
receiver. They are paired so that they are tuned to each other, and by placing the
transmitter in one manhole and the receiver in the neighboring manhole, and then
setting off the series of tones, it gives you a very quick indication of the percent
blockage of the sewer line in between. That seemed like a really good way to survey
the County's gravity sewer line systems, so we had actually put in for FY 2016 a
budget appropriation to hire the vendor, the supplier of this equipment, or some
contractor, who is familiar with it, to come out and do a one-time assessment of all
of our lines. We learned a little bit more over the course of this year and that
budget appropriation was approved, so there is an existing line item in our budget
for doing a survey. When we dug down deeper into it, it turned out that the
equipment is appreciably less expensive than the amount that we had budgeted for
the survey to be performed as a service. It is patented technology. They came over
to Kaua`i and did a little pilot with us and our operators, our line crew people, the
Sewer Maintenance section, was there with it and it was very clearly something
that is well within the capability of our internal personnel. So we talked with
Purchasing about changing strategy, so instead of hiring for a one-time survey, it
made more sense to us to buy the equipment. That has residual benefits of being
able to go out and reassess and that it will be part of the package of tools that we
have in our tool chest to review and assist us with understanding where we have
blockage, what frequency of cleaning we need to do, and so on. The request here is
COUNCIL MEETING 38 APRIL 6, 2016
basically that we need Council approval to essentially redirect funds from the
acquisition of a service to a purchase of equipment. So that is what our request is.
Councilmember Yukimura: Thank you very much.
Council Chair Rapozo: Thank you. Any other questions? If not,
thank you. Any public testimony? Seeing none, I will call the meeting back to
order. Further discussion?
There being no objections, the meeting was called back to order, and
proceeded as follows:
The motion to approve C 2016-87 was then put, and unanimously carried.
C 2016-88 Communication (03/17/2016) from the County Attorney,
requesting authorization to expend funds up to $40,000.00 for Special Counsel's
continued services provided to the Planning Department for Transient Vacation
Rental (TVR) appeals, and related matters.
Ms. Fountain-Tanigawa: Chair, we have one (1) registered speaker for
this item.
Council Chair Rapozo: Okay. With that, I will suspend the rules.
Ms. Fountain-Tanigawa: The registered speaker is Alexis Boilini.
Council Chair Rapozo: She is not here. Okay, we are going to move
this until after we have the Executive Session briefing. Can we have the next item?
Ms. Fountain-Tanigawa: Okay. The next item is C 2016-89.
C 2016-89 Communication (03/18/2016) from the Director of Economic
Development, requesting Council approval to apply for, receive, and expend funds,
in the amount of $75,000.00, from the State of Hawai`i Department of Agriculture,
to be used for the East Kaua`i Irrigation System Maintenance, for maintenance of
the East Kauai North and South Complexes and the Upper Kapahi and Wailua
Reservoirs: Councilmember Kuali`i moved to approve C 2016-89, seconded by
Councilmember Kaneshiro.
Council Chair Rapozo: Discussion? Councilmember Yukimura.
Councilmember Yukimura: Can we have Economic Development up
here?
Council Chair Rapozo: Yes. The rules are suspended with no
objections. This is an application for a grant. Correct?
There being no objections, the rules were suspended.
GEORGE K. COSTA, Director of Economic Development: Yes. Aloha Chair
Rapozo and Honorable Councilmembers. For the record, George Costa, Director for
the Office of Economic Development. Good morning.
COUNCIL MEETING 39 APRIL 6, 2016
Councilmember Yukimura: Good morning. I know this came up
yesterday in your list of projects because there is twenty-five thousand dollars
($25,000), I believe.
Mr. Costa: For the Office of Economic Development?
Councilmember Yukimura: Yes.
Mr. Costa: Yes, it is fifteen thousand dollars ($15,000).
Councilmember Yukimura: Okay. I just wanted to know the seventy-five
thousand dollars ($75,000) plus the fifteen thousand dollars ($15,000)—is that the
total annual amount?
Mr. Costa: Yes. The support from the Office of
Economic Development has been ongoing for several years and that was usually to
help from a County perspective support, along with the State funding that they
were receiving. Apparently, in the last two (2) years, the State has ceased their
funding to the East Kaua`i Water Users' Cooperative, so they have been utilizing
basically the County funds and any donations that they receive. In this case, the
Department of Agriculture has some barrel tax money that they would like to
provide one-time support to this effort. That is the request that we have before you.
Councilmember Yukimura: Okay.
NALANI BRUN, Operations Manager/Economic Development Specialist IV–
Tourism: Nalani Brun, Office of Economic
Development. Their yearly budget is about one hundred thirty thousand dollars
($130,000). The rest of their fees that they get are from the user fees that are
provided by those that are members of East Kaua`i Water Users' Cooperative. They
have been putting off the major maintenance part of their program, which is
actually having to rent large equipment to get some of the ditches cleared. So that
is what they are hoping to accomplish with the additional funds.
Councilmember Yukimura: So you are saying that they are planning to
buy equipment with this money?
Ms. Brun: No, they are just trying to rent. They have
to rent some equipment. It is just a one (1) year program. They have some trees
that need to be removed and roots that need to be pulled from some of the ditch
systems. They gave me a list of things to cover the different plots of the area that
they are doing. They have other areas that they cover, but specifically, this is for
that one side near Kapa'a and Wailua.
Councilmember Yukimura: That is slated to cost seventy-five thousand
dollars ($75,000).
Mr. Costa: Yes. As part of the grant request, and I am
not sure if you have a copy, but it is very detailed of all the areas that they are
maintaining. A lot of it is manual labor, but there are areas...I have gone and
visited with Jerry Ornellas and Les Milnes and some of them are inaccessible so the
COUNCIL MEETING 40 APRIL 6, 2016
manual labor is required. Others have access that heavy equipment can get in
there and take out large sections of hau and overgrowth. That is what this request
is for, seventy-five thousand dollars ($75,000) to rent that equipment that is needed
to take out the large overgrowth.
Councilmember Yukimura: How long is this expected to last?
Mr. Costa: It is for one (1) year.
Councilmember Yukimura: Yes, but will they need in another one (1)
year, five (5) years, or ten (10) years similar moneys for this kind of major repair?
Ms. Brun: Well, according to East Kaua`i Water Users',
they have not been able to do this major repair for years because the State pulled
funding. With our funds that we have been providing, they have been just kind of
doing maintenance to handle keeping the system going, but they really need to get
in and get the other jobs done. What they did was they went up during the
Legislative Session and they begged for the money. They realized how important it
was, so they needed to move the money down quickly, and that is always by
government to government. So we are asking to go forward to get those funds from
the Department of Agriculture. We are just acting as the in-between.
Councilmember Yukimura: Right. My question was how soon before
they will need it again or are there measures that are going to be instituted with
preventative maintenance so that this amount is not needed again soon?
Ms. Brun: From the State?
Councilmember Yukimura: It does not matter from whom.
Ms. Brun: Okay. I think they will always need
maintenance money. That is clear. They do have just under forty thousand dollars
($40,000) in user fees, but that is not always covering all of the costs. When the
reservoirs reopen, that is going to cause a whole other set of issues because that is
what they are preparing for now with this money. They are trying to clear the way
when the water gets refilled and some of it starts to flow. They have to have all of
that open; otherwise we are going to have overflows, according to them. So I would
say that they are always going to need maintenance funds. They are asking the
State to do this as a yearly drop of money. They expect the State to give them about
sixty thousand dollars ($60,000) a year. That is what stopped. They have upped it
to seventy-five thousand dollars ($75,000) this year to try to take care of some of the
bigger issues. I expect that they will be going back several times to ask for this
money each year to keep the system going.
Councilmember Yukimura: How many farmers are being served by this?
Ms. Brun: I actually asked them for the numbers. We
do not exactly have it. I know it is two hundred seventy-three (273) plots in this
specific project. We have a huge list of every single one of them what is on the land.
I can tell you that it definitely involves all of the ones above the reservoir that shut
down about Kapahi. A lot of the farmers below are already dry because of the
COUNCIL MEETING 41 APRIL 6, 2016
reservoir shut down. It actually even feeds into Wailua Houselots and Bette
Midler's property, all the cattle ranchers that are down there.
Councilmember Yukimura: So you said that once the reservoir opens it is
going to cause problems?
Ms. Brun: Well, they just need to clear the ditches.
When it does reopen again, the water can easily flow back down again. Right now,
there is a lot of debris left in there.
Councilmember Yukimura: Okay. Maybe at some point we can have a
fuller briefing in committee.
Ms. Brun: Absolutely.
Councilmember Yukimura: Thank you.
Council Chair Rapozo: Councilmember Hooser, do you have a
follow-up question?
Councilmember Hooser: Yes. Just briefly, I know that the
Legislature has been supporting this when I was there. It was annual ask...I
thought it was seventy-five thousand dollars ($75,000) then, actually, and I was
always supportive of that. It is important to keep these irrigation systems open and
I want to support the farmers. I think it is a good question that Councilmember
Yukimura asked about how many individuals it serves, and you said two hundred
(200) or so plots?
Ms. Brun: There are two hundred seventy-three (273)
plots. I am trying to get that information.
Councilmember Hooser: Is that two hundred seventy-three (273)
farmers? Probably not. Is it fifty (50) farmers? Is it two (2) farmers? That would
be good information to have. Thank you.
Ms. Brun: Yes.
Council Chair Rapozo: Councilmember Chock.
Councilmember Chock: This is important to maintain these ditches.
Do we already have in place the right permitting for this work? Grading, grubbing,
and I know there is herbicide application, too. So do we have all of those permits in
place? I know that when you work around the water, you need specific kind of
oversight.
Mr. Costa: Yes, specific kind of oversight to spray all of
the ditches.
Councilmember Chock: Yes, I just wanted to make sure we are clear
on that.
COUNCIL MEETING 42 APRIL 6, 2016
Mr. Costa: According to Jerry Ornellas, who works with
the East Kaua`i Water Users', they have all of the necessary permits.
Councilmember Chock: Okay. Thank you.
Council Chair Rapozo: Any other questions? If not, thank you.
Anyone wishing to testify? Mr. Mickens.
Mr. Mickens: For the record, Glenn Mickens. The question
is for George, maybe he can answer this, but Kainahola has been closed for a couple
of years. The State is working over there on the flood control and all the rains we
have had...it has never been a problem. Anyway, they are working on this project.
I was just wondering if this particular seventy-five thousand dollars ($75,000) has
anything to do with it because that road was supposed to have been open, I think, in
January of this year, Kainahola going over to Kawaihau. It is still closed, meaning
that you have to go all the way down Olohena to Ka'apuni, go across to get to
Kainahola or to get to Kawaihau. It is really inconvenient for people because they
use Kainahola to come across, going all the way over to Olohena, the other way. I
was just wondering because they said it was going to be open in January and here it
is April and it is still closed. They have a sign that says "No Through Traffic" on the
road. I did not know whether George could answer that question or not, but it is
just something I would like to know. Thank you.
Council Chair Rapozo: Mr. Costa.
Mr. Costa: Again, George Costa, for the record. Yes,
that Kainahola Road is closed because the work is still continuing on that Upper
Kapahi Reservoir. I just learned a few weeks ago that the original contractor that
was doing the work ran into financial difficulty, pulled out of the project, and now I
believe Earthworks is the new contractor. It is my understanding that Earthworks
had just started up and hopes to complete that project. I do not know what the
actual timeline is for the completion, so part of the request for the ditch irrigation
system is in preparation once that reservoir is completed and the waters will be
opened up again to irrigate the section below the reservoir in upper Kapahi.
Council Chair Rapozo: Was that a County project or a State project?
Mr. Costa: State project.
Council Chair Rapozo: Thank you. Anyone wishing to testify?
Seeing none, I will call the meeting back to order. Further discussion?
Councilmember Yukimura.
The meeting was called back to order, and proceeded as follows:
Councilmember Yukimura: As I stated yesterday, I think maintaining
the legacy from the plantations, the ditch irrigation system...I think this was a
plantation legacy...but they are so important because if they are allowed to run
down, they are irreplaceable basically. I support this. I just feel we have a
responsibility when any money is provided to make sure that that money is used in
the most effective way to fix the problem and to sustain the ditches on an ongoing
basis. That is the reason for my inquiry. Thank you.
COUNCIL MEETING 43 APRIL 6, 2016
Council Chair Rapozo: Councilmember Hooser.
Councilmember Hooser: I have supported this in the past. This is
basically just a pass through. At the same time, I think we do bear some
responsibility for oversight, not just to rubberstamp. The legacy of the sugar
plantations is not one hundred percent (100%) actually, and our issues regarding
stream restoration and water use, at some point, might need to be looked at. I do
not think we are in the position to look at that now, but there are issues
surrounding use of water that are very important that I think we should be mindful
of. I will be supporting this. Thank you.
Council Chair Rapozo: Thank you. Any other discussion? This does
come with some County funding—fifteen thousand dollars ($15,000) for the
upcoming year. Yesterday in the budget discussions when I was talking about the
importance of advocating for agriculture, this is what I was talking about. These
are the types of projects that we need to support agriculture. What is interesting is
that the State stopped this funding for a while. I was up at the Capitol a couple of
weeks ago, testifying for the Transient Accommodations Tax (TAT) and I was told
by one of our legislators...one of the things I did not hear was a thank you for all
that we do for the counties. We, the County, often times have to pick up the slack
when the State is forced to reduce their spending. I am glad to see...hopefully the
State will come through with this. This is an application for State funding. My
point is in line with kind of what was being said earlier that somebody has to make
sure that this project, which is a very informative description in the application, but
somebody from the County has to make sure that these things are being done. That
is quite a huge task that this application seeks to accomplish. George, I am not sure
if you are able to do that, but somebody has to oversee this to make sure that these
projects, in fact, get completed because it needs to be done to preserve that ditch
network for the farmers. Councilmember Kuali`i.
Councilmember Kuali`i: I just want to add that along those lines, I
agree with you one hundred percent (100%) and those were my feelings yesterday in
budget as well. This is a good example of one place where it is happening, but it
needs to happen in other places on the island as well. I know for sure that in
Anahola in the homestead, for years now whenever we have had community
meetings, surveys, and needs assessments, the community always says the number
one issue is water. What you are trying to prevent from happening in the Kapa'a
area has already happened in Anahola. Our ditch systems are in total disrepair
from twenty (20) or thirty (30) years of neglect. Some of the reservoirs are barren,
but the State's effort to decommission because of Ka Loko is not the solution. The
solution is restoration and bringing water back. There are thousands of acres of
open land available for agriculture and people who want to do it, but no water. So
the agricultural focus for Economic Development should probably be on water.
Thank you.
Council Chair Rapozo: Councilmember Kagawa.
Councilmember Kagawa: I remember and I think it was Keoki Rapozo
and Mr. Teves that said they had water running for their properties and for their
agricultural operations out of home, and they told us that it was dry. There was no
water and they do not know where it went. We need to get the answers as to where
COUNCIL MEETING 44 APRIL 6, 2016
it went. Did it all dry up in the mountains? It is going somewhere else? We do not
have the expertise here at the County level, but I think us taking the lead and
trying to give answers to our residents is necessary. Mamo Wakuta told us that he
used to have a lot of water running passed his property and all of the trees that
used to live alongside the water died. Again, it is not just happening there. Mel, do
you remember walking across the Waimea Swinging Bridge? We saw maybe six (6)
inches or one (1) foot of water in that river that used to be above head. There was
six (6) to eight (8) feet of water before, flowing in that river under the swinging
bridge. My father folks used to jump off of the bridge, so it was more than ten (10)
feet. What happened to all of the water? Where is it going? We need to get
answers because I think we have a serious problem and there are a lot of questions,
but nobody is answering. I am sure somebody knows. So if it is Economic
Development that is going to help search the island, not only for Wailua and
Kapahi, but like Councilmember Kuali`i said, let us get answers for all of the areas
that have changed drastically. I think that is where we need to go.
Council Chair Rapozo: Thank you. Councilmember Chock.
Councilmember Chock: I am pleased with the content of the
conversation on water because I think it is so important; not only the preservation
of our agricultural irrigation systems and the maintenance of it, but I think that the
bigger questions that are being asked in terms of where the diversions are occurring
and where the water is going. I think one of the main things is access, in order for
us to be able to access and maintain these streams. Thank you for the work that is
occurring and it needs to happen everywhere else. I am supportive of any actions
that we take in that direction.
Council Chair Rapozo: Anyone else? I concur. I do not know if
George knows a way. Do you want to come up, George? Okay, I will suspend the
rules. Hopefully you have some answers.
There being no objections, the rules were suspended.
Mr. Costa: For the record, George Costa, Office of
Economic Development. I know yesterday we talked about me being stretched thin,
but I was actually here two (2) years ago with Keoki Rapozo when we visited his
farm with Jerry Ornellas when they first shut down the upper Kapahi reservoir and
Jerry showed us that what was happening is when they shut down that reservoir,
everything below the reservoir that fed that area where Keoki Rapozo and the
Wakuta's...that is not flowing right now because of that project. So we need to get
that project completed so that those farmers below that reservoir will have access to
water. I went with Jerry Ornellas and Les Milnes, so they showed me exactly what
happened, the intakes and what is being shut down. With regards to Anahola, I
actually walked almost the entire irrigation system in Anahola all the way to the
upper intake. It was about a two (2) to three (3) hour hike. You are right,
Councilmember Kuali`i. It is an irrigation system and it is actually a historic
irrigation system and much of it is in disrepair. We actually went to the intake.
The intake is blocked with rocks and debris, so there is no water actually coming
into the intake. Those are some of the items that we talked about with the
Department of Hawaiian Home Lands (DHHL) that may be a future project. The
last one was Waimea. We had an opportunity to look at a national emergency grant
back in 2012/2013 with the Menehune Ditch. I went with John A'ana, taro farmer
COUNCIL MEETING 45 APRIL 6, 2016
from Makaweli Valley. He showed me the situation with the water and also met
with Carl Dusenberry, whose property is affected by that pipe that breaks all of the
time. It has since then been repaired. It was good education because John Nana
took me up to the upper ditch area to kind of explain to me how that ditch system
works. I do not have all of the answers, but I am somewhat familiar as to some of
these situations that are occurring. I am glad that the State came through and
helped with that situation on the Menehune Ditch pipe. I guess the East Kaua`i
Water Users' Cooperative is trying to address the situation in upper Kapahi. We
are familiar with the situation in Anahola as well.
Council Chair Rapozo: Okay. We will send something over. I do not
know if it is to you or the State, but I think it is an area that we can at least
address. Councilmember Hooser.
Councilmember Hooser: You may or may not have the answer to this,
but I thought I heard during the Mayor's speech a couple of weeks ago where he
mentioned watershed alliances funding it or reforming it or something. Did I hear
that correctly?
Mr. Costa: I am not totally involved with that, but there
are watershed groups that want to become more involved with the various
situations that we are talking about. They have been active in their own circle, but
I brought it to the attention of the Mayor. That is as far as I know.
Councilmember Hooser: I believe he mentioned his support in one of
the goals for the coming year. Who in the Administration would be the person to
brief us on these water issues?
Mr. Costa: I believe there is a meeting coming up,
scheduled with the Mayor. I know Rhoda Libre is on the west side watershed hui
council.
Councilmember Hooser: Within the Administration, would that be
you?
Mr. Costa: That would be me, right.
Councilmember Hooser: Okay. I think that is something we could
look forward for in the future.
Council Chair Rapozo: Right after the budget.
Councilmember Hooser: Pardon?
Council Chair Rapozo: Right after the budget.
Councilmember Hooser: Or perhaps during the budget, in conjunction
with the need for additional agricultural support. That was my thought.
Council Chair Rapozo: Yes.
COUNCIL MEETING 46 APRIL 6, 2016
Councilmember Hooser: Water and agriculture needs more emphasis,
both of them. Thank you.
Council Chair Rapozo: You are probably right. We will ask
Councilmember Kuali`i to put something in his committee. Do you know when that
meeting is?
Mr. Costa: I will have to check with Cathy Simao.
Council Chair Rapozo: I will ask Councilmember Kuali`i to work
with you folks and get a committee date. Councilmember Chock.
Councilmember Chock: Some of the discussion originated with
conversations with the Mayor and I just wanted to mention that because I have
been working with the different watershed hui just in discussion. I will check in
with Councilmember Kuali`i on that and we can coordinate more effort on that.
Thank you.
Council Chair Rapozo: Councilmember Yukimura.
Councilmember Yukimura: When Ernie Lau was head of the
Department of Water, he created these watershed...I do not know what they are
called, but they are actually the landowners who own the land that are part of the
watershed...so that is now about fifteen (15) or twenty (20) years ago, where they
were banding together to try to encourage good management practices. They are a
player/partner if they are still in existence, which I think they might be, but the
Department of Water would be the one that was at least initially organizing.
Mr. Costa: Okay.
Council Chair Rapozo: Thank you. I will call the meeting back to
order.
There being no objections, the meeting was called back to order, and
proceeded as follows:
The motion to approve C 2016-89 was then put, and unanimously carried.
C 2016-90 Communication (03/18/2016) from the Director of Economic
Development, requesting Council approval to receive unspent grant funds from
previous fiscal years from the Kaua`i Farmers Development Corporation and Kaua`i
Farmers Association, in the total amount of$100,050.92, that will be redeposited to
the General Fund: Councilmember Kagawa moved to approve C 2016-90, seconded
by Councilmember Kuali`i.
Council Chair Rapozo: Councilmember Yukimura.
Councilmember Yukimura: Can I have OED up, please?
Council Chair Rapozo: The rules are suspended. You are asking us
to approve the acceptance of one hundred thousand dollars ($100,000).
COUNCIL MEETING 47 APRIL 6, 2016
There being no objections, the rules were suspended.
Mr. Costa: That is correct. For the record, George
Costa, Office of Economic Development. Basically from 2002 to 2009, these funds
were primarily earmarked or approved for the Tropical Fruit Disinfestation Facility
at Ahukini, referred to as the "Papaya Disinfestation Facility." During those years,
through the farm bureau, the Kaua`i Farmers Development Corporation and the
Kauai Farmers Association were basically overseeing and trying to reestablish that
the facility was receiving County funds. I know when I came on board in 2009, we
worked with Mabel Fujiuchi who had gotten a grant-in-aid from the State
Legislature. We worked and restored much of the equipment and actually got it
ready to certify. Unfortunately, the papaya farmers had pretty much disbanded so
there was no papaya crop to run through the facility. As it turned out, and I did not
realize it because it happened before my time, but the Farm Bureau and the Kaua`i
Farmers Development Corporation had informed me that they still had these funds
and some of it was used, but for the most part, they had not used all of it and
needed to return it back to the County. So that is what this request is for, to receive
those funds that were approved from 2002 to 2009.
Council Chair Rapozo: Thank you. Questions?
Councilmember Yukimura: You answered my question. I wanted to
know how long these moneys were in limbo, so to speak.
Council Chair Rapozo: You said it was 2002?
Mr. Costa: Yes until 2009.
Council Chair Rapozo: Wow, okay. Thank you very much.
Mr. Costa: You are welcome.
Council Chair Rapozo: Any public testimony? Seeing none, I will
call the meeting back to order. Councilmember Yukimura.
There being no objections, the meeting was called back to order, and
proceeded as follows:
Councilmember Yukimura: It is good news that we are getting back one
hundred thousand dollars ($100,000), but it is pretty troubling that for over
fourteen (14) years that this money has not been used. It is an example of not
developing our projects carefully enough. I think we went "gung ho"...I mean
actually this Tropical Fruit Disinfestation Facility is something that I started when
I was the Mayor. We got federal Economic Development Administration (EDA)
moneys after the hurricane to develop what was, at that time, a very needed facility
because we had huge papaya production and we had to ship them elsewhere for
treatment. After the hurricane, I think it was damaged and had to be fixed, and
then the crops were damaged and had to be replanted. So way after me, there was
this effort to resurrect the disinfestation plant, but there was not thought about
production and how you were going to have the production to pass through the
disinfestation plant. Plus there was a whole lot of going around in circles, in terms
of who and how to repair the facility. The main thing is that this money has not
COUNCIL MEETING 48 APRIL 6, 2016
been used for a lot of projects and it could have been used over the last ten (10)
years. I am glad that we are getting it back. I think it just gives us pause to think
of how carefully we have to give out the money and make sure there are good plans
for how to use and implement the projects.
Council Chair Rapozo: Thank you. Any other discussion?
The motion to approve C 2016-90 was then put, and unanimously carried.
C 2016-91 Communication (03/23/2016) from the Housing Director,
requesting Council approval to apply for, receive, expend, and indemnify the United
States Department of Housing and Urban Development (HUD) grant, in the
amount of $133,000.00, for the continuation of salaries and fringe benefits for the
two (2) Housing Choice Voucher Family Self-Sufficiency (HCVFSS) Program
Coordinators, to continue the FSS Program, which enables participating low-income
families increase their earned income, reduce or eliminate the need for welfare
assistance and rental subsidies, and make progress towards economic independence
and self-sufficiency: Councilmember Kuali`i moved to approve C 2016-91, seconded
by Councilmember Yukimura.
Council Chair Rapozo: Councilmember Yukimura.
Councilmember Yukimura: May we have the Housing Agency up, please?
Council Chair Rapozo: The rules are suspended. Is this the first
appearance of the new Housing Director or have you been here before?
There being no objections, the rules were suspended.
KANANI FU, Housing Director: This is my first time.
Council Chair Rapozo: Congratulations Kanani, our brand new
Housing Director.
Ms. Fu: Hi. Good morning, Council. Kanani Fu,
Housing Director.
Councilmember Yukimura: Good morning and congratulations.
Ms. Fu: Thank you.
Councilmember Yukimura: This is such an exciting and wonderful
program that I would like to highlight it and also to let people know about it
because there might be others who want to apply and participate. So I was
wondering if you could just briefly tell us how this program works and what kind of
results you have been getting.
Ms. Fu: Sure. The Housing Choice Voucher Family
Self-Sufficiency (HCVFSS) Program is an arm of our Section 8 Division and the
purpose of it is to increase the financial income of a family or of a household. It
runs in conjunction with our United States Department of Housing and Urban
Development (HUD) Section 8 voucher program, so clients are referred over and
COUNCIL MEETING 49 APRIL 6, 2016
participation is by choice. We work alongside these families and providing them
with a multitude of resources; not only with financial literacy, but also connecting
them to resources within the community that they may need; for example, KCC,
Workwise, Kaua`i Economic Opportunity (KEO), and those kinds of things. There
are some incentives for being part of the program, which we have our FSS
Coordinator here who can talk a little more about those incentives. It really is an
effort to try to help participants get off of the system, so to speak. It comes with
federal funds and it is housed in our agency.
BRICEN MORITSUGU, Section 8 Housing Choice Voucher Program
Manager: Good morning, Mr. Chair and Members of
the Council. Bricen Moritsugu, Section 8 Housing Choice Voucher Program
Manager. I will introduce to you our new Family Self-Sufficiency Coordinator as of
last week Friday, Ku'ulei Palomares.
KU`ULEI PALOMARES, Family Self-Sufficiency Coordinator: Good
morning.
Mr. Moritsugu: For the Family Self-Sufficiency (FSS)
program, as Kanani mentioned, is a voluntary program for Housing Choice Voucher
participants. Its goals are to enable our participants to work towards economic
self-sufficiency, whether that be through employment, higher education, or even
working towards home ownership and it does have a really unique incentive
component. First off, when a participant comes forth for the program, we do meet
with them on a one-on-one basis and they do come to us and they establish goals
that they want to achieve while being a participant on the program. One thing we
want to highlight of the program is that it is up to five (5) years that a participant
can be in the program. So it is kind of a long-term program participation. It is not
a quick and very in and out type of program; it is long-term. The reason why that
HUD allows that to happen for up to five (5) years is for some participants, some
goals are really long-term, and from our experience working with our participants,
the number one goals that take a long time are actually those related to personal
finance like credit repair, debt consolidation or debt reduction, as well as working
towards home ownership, like homeownership education and getting themselves
ready to make that next step into home ownership. They do allow up to five (5)
years for that. They do come with goals. We call it a "participant-driven program"
where the participants come to us, ask the program coordinator and tell us what
they want to achieve while on the program. It can be employment or gaining better
employment, such as moving from a part-time job to a full-time job or going back to
college for nursing, or again as we mentioned earlier, moving towards
homeownership. So the program's job then is to link up that participant with
resources out in the community or within the agency to help them achieve the
success of those goals. In the case of homeownership, we can link up the participant
with Hawaiian Community Assets or Hawai`i Home Ownership Center for
homebuyer education and counseling where they can take it from there. Our job is
to link up those participants to those available resources within the community. In
some cases, it may be online or it may be resources off-island. It just depends on
what the unique goal that the participant is trying to achieve on the program. As
an incentive for participation on the program, the program offers what is called the
"escrow account," which is basically a savings account that can be matched and
money is put into the account from changes in earned income. As a "quick and
dirty" example, how we explain the program is let us say the participant's rent is
COUNCIL MEETING 50 APRIL 6, 2016
one thousand dollars ($1,000) and the Section 8 portion that is covering it is seven
hundred dollars ($700) and the tenant is paying three hundred dollars ($300), so at
the beginning on the month, the landlord gets one thousand dollars ($1,000) of rent
every month. Six (6) months later, let us say that the participant then gets a better
job or moves into full-time employment and their reported income changed to the
Section 8 program and the case worker does her computations and they tell the
participant, "Okay, your share of the rent is going up two hundred dollars ($200) to
five hundred dollars ($500)...from three hundred dollars ($300) to five hundred
dollars ($500)...HUD's share is going down from seven hundred dollars ($700) to
five hundred dollars ($500) as well. So at the end of the day, the landlord still gets
the one thousand dollars ($1,000) in rent. For an FSS participant, the case worker
pays very close attention to those changes in the earned income. This example's
case is going from a three hundred dollar ($300) share to a five hundred dollar
($500) share. So there is a two hundred dollar ($200) difference there. That two
hundred dollar ($200) difference comes from the Section 8 side as a reduction in the
Housing Assistance Payment Subsidy. For FSS, if they are a participant, that two
hundred dollar ($200) share gets diverted into the escrow account every month until
there is another change in income or another annual recertification or whatever
change that the participant may report. So that two hundred dollars ($200) would
get deposited every month until the next update. So in theory, it is possible that if
the participant completes all of the goals that they agreed and signed the contract
to that they were going to work on, and are working full-time employment and are
not receiving cash/financial welfare assistance, that participant will graduate and
whatever money is in the account will be paid to the participant that they could use
however they see fit. For our participants, some examples are home ownership
down payment, purchasing a new vehicle for work or employment, putting money
aside for college for the kids, or for recent graduates, I believe, some of our
participants are actually just putting money aside like a rainy day fund for future
expenses or just a rainy day...
Ms. Palomares: Or paying down debt.
Mr. Mortisugu: So in a nutshell, that is how the FSS
program works. Why we are here today is it is a grant program, it is grant funded,
and it is a subprogram of the larger housing choice voucher program that requires
us to apply for continued funding every year. So every year, we have received
funding to continue the service. What we have provided for you and submitted for
you today is our actual grant application. I do apologize. It is a short turnaround
time. HUD generally gives us less than one (1) month, from the time that they
announce the grant for when they are due. So this year's grant application, I
believe, came out on March 22nd and it is due on April 20th, so our apologies for the
rush in trying to get the paperwork in, but we were able to get the grant completed,
ready to go upon your approval. Also included in the packet that we provided for
you was the notice of funding availability, highlighting this year's funding, as well
as the actual application. Starting from the 2014 program year, for the FSS
program we are also providing a program highlight sheet, detailing some of the
program's successes, as well as the actual numbers that the program has achieved
from the previous reporting period. Our most recent reporting period is the 2015
program year from January 1, 2015 through December 31st and that has been
provided for you as well.
COUNCIL MEETING 51 APRIL 6, 2016
Councilmember Yukimura: Thank you very much. So your sheet shows
that last year you had total participants: eighty-nine (89) households, two hundred
eighty-five (285) individuals, and the average saving was eight thousand seven
hundred dollars ($8,700).
Mr. Moritsugu: That is the average increase in earned
income for those participants who worked and did have an increase in earned
income that we track throughout the program year.
Councilmember Yukimura: Okay, so it was fifteen (15) households
enrolled in this program during this period.
Mr. Moritsugu: Correct, fifteen (15) new additions in the
2015 period.
Councilmember Yukimura: And you have eight (8) graduates?
Mr. Moritsugu: Correct.
Councilmember Yukimura: Escrow total payments are one hundred nine
thousand dollars ($109,000).
Ms. Palomares: Correct.
Councilmember Yukimura: So basically, you are helping household
families build wealth...
Mr. Moritsugu: Asset building.
Councilmember Yukimura: It sort of counters the proverbial government
assistance that gets yanked as soon as you start making money and instead tries to
leverage that into getting them to a better position with more assets, which enables
them to do more for themselves.
Mr. Moritsugu: Yes. As an asset-building tool or program
like this, we look at the program as a hand up, make uplifting the participant to
work towards self-sufficiency, whether that be through employment, education, or
home ownership.
Councilmember Yukimura: You are giving them skills that if they
continue to use, they can continue to build their assets even after the program ends.
Mr. Moritsugu: Correct.
Councilmember Yukimura: So it is that proverb again or that story
about instead of giving men a fish, you teach them how to fish. It is a really positive
and uplifting part of government, so thank you for sharing that and thank you for
doing the work. I do not see how we could possibly reject this grant because it is
maybe one of the best things that government is doing. Thank you.
Council Chair Rapozo: Thank you. Questions? Councilmember
Hooser.
COUNCIL MEETING 52 APRIL 6, 2016
Councilmember Hooser: Thank you very much for the presentation.
It was uplifting, as my colleague said, to see some of what government is doing to
help people in a real positive way. How many people participate in the program?
Ms. Palomares: Currently, seventy-nine (79).
Councilmember Hooser: Is it capped or if other people want to
participate, do they just call you up?
Ms. Palomares: Correct. We have a waiting list right now,
but any of the housing clients that have vouchers within HUD are able to contact us
and say that they want to be put on the waiting list.
Councilmember Hooser: Okay. Do you by chance work with the
Annie E. Casey Foundation?
Mr. Moritsugu: Not for this particular program, although the
Annie E. Casey Foundation does do studies, especially in the asset building field.
Usually when they do a study, we will probably catch wind of that ourselves, either
through the HUD office or some of our colleagues throughout the state.
Councilmember Hooser: Great. I attended workshops in the past
sponsored by them and it is quite illuminating, if you would. One of their main
tenets was if you want to raise people out of poverty there was three (3) things: earn
it, keep it, and grow it. "How do you earn money?" Job training or increasing
minimum wage. "How do you keep it?" Financial literacy. "How do you grow it?"
In asset building. I am very pleased to know that you are involved in this asset
building. Thank you.
Council Chair Rapozo: Councilmember Kuali`i.
Councilmember Kuali`i: I want to add that I think about
asset-building and how we can help our low-income families more in combating
poverty all the time. In fact, I was just in Washington, D.C. with the National
Association of Counties (NACo) and we heard from the HUD Secretary Castro and
different HUD officials, and they talked about how combating poverty was a big
goal of theirs. Do you work with a group like the Hawai`i Alliance for Community
Based Economic Development (HACBED) or are you like the version of that group
on Kaua`i?
Mr. Moritsugu: We do work with them on occasion,
depending on what projects they may have coming down the pipeline. Throughout
the years for this particular program, because it comes specifically under HUD, it is
kind of isolated within the HUD programs per se, but I can say over the last couple
of years and moving forward, one of the goals that I want to initiate for the rental
assistance division is to be a little more collaborative with our partners outside in
the field, our agency providers like KEO, the Continuum of Care, and other asset
building alliances that are available on-island or throughout the State. So moving
forward, we do want to be more collaborative in working with other agencies as
well.
COUNCIL MEETING 53 APRIL 6, 2016
Councilmember Kuali`i: I know of course with our Housing with HUD
and Section 8 and all of that, there are waitlists, so there is many more people that
are needing assistance that we cannot help. For your specific part of what you are
doing with this FSS, do you also have waitlists?
Mr. Moritsugu: The program does have a waitlist. Right
now, to go through the waiting list, it takes actually less than one (1) year. In years
past, it could be several years, but we have been able to go through the program
waiting list and cut that down to about less than one (1) year.
Councilmember Kuali`i: Your funding is primarily state funding and
our Housing is helping them get state funding or do we also fund?
Mr. Moritsugu: The FSS program is a federally funded
through a grant from the US Department of Housing and Urban Development.
Councilmember Kuali`i: Right. But you are working with our
Housing Agency, but...
Mr. Moritsugu: It is within the Housing Agency.
Councilmember Kuali`i: With the state's money? Do you both work
for the Housing Agency? I missed that part. Sorry. I thought you worked for an
entity that was working with the Housing Agency. I am very sorry.
Ms. Fu: He is the Section 8 Manager and she is our
FSS Coordinator. I wanted to just respond to your comment, Councilmember, is
that we do not only prohibit our participants to just stay in our program; we
encourage them to take advantage of different opportunities that come from other
programs as well. What Bricen had mentioned is that key part of partnering and
they are very involved outside of the Housing Agency with other agencies as well
like sitting on advisory committees and boards so that we know firsthand the
different services and resources coming down the pipeline, so to speak, for this
County.
Councilmember Kuali`i: Anything I can do to help you folks, I am
your champion. I tell you.
Council Chair Rapozo: Councilmember Yukimura.
Councilmember Yukimura: So you say there is a waiting list that it now
takes less than one (1) year to go through. How did you do that?
Mr. Moritsugu: Right now when we are actively contacting
those off the waiting list, some of them unfortunately have lost interest and actually
others choose just wanting stay on the waiting list for the moment. They may have
other personal issues that they are working through and not quite ready themselves
to maybe make the jump and do what needs to be done for the FSS program, so they
voluntary asked us, "Can you keep us on the waiting list and maybe in the next
cycle make contact with me as well?" A big part of the FSS program, we look at it
as kind of a social services component to the Housing Agency and Housing Agency
programs. So we are dealing with a lot of the social issues that may impact family
COUNCIL MEETING 54 APRIL 6, 2016
that they may want to choose to work through first before they move on to the next
jump of either FSS or home ownership. They may have various barriers. We
understand that and we recognize that and if they so choose they want to wait and
come back later, we will respect that and honor that as well. Also, there was period
in time for the FSS program back in 2013 when one of the specialists left and there
was basically only one (1) person before I come onboard, and that was about a six (6)
month time period where it was only one (1) person doing the entire program. That
kind of delayed things a lot unfortunately, doing more with less. We got the
program back up to full staffing and that really helped us to go through the waiting
list quicker being that we were not at one hundred percent (100%) staffing.
Unfortunately, right now, we are back to fifty percent (50%) with those changeovers
in the Housing Agency, so right now we are actively recruiting for a replacement
specialist for the FSS program and we should have somebody onboard, we are
hoping by the middle of May.
Councilmember Yukimura: I see. So actually, your waiting list could
disappear once you are fully staffed?
Mr. Moritsugu: Possibly, yes.
Councilmember Yukimura: It is not at this point a lack of authorized
staff.
Mr. Moritsugu: Yes.
Councilmember Yukimura: You have one more position that you are in
the process of filling.
Mr. Moritsugu: Yes.
Councilmember Yukimura: Okay. Hopefully that will help you address
the need because I think if there is a way to expand this program, if there are more
families that can utilize your services, it would seem to be a very positive thing to
be able to...basically, you are helping them leave the system much better off and
making them much more capable. To me, this is something very worthwhile to fund
and grow if we can. Thank you.
Council Chair Rapozo: Thank you very much. Appreciate it.
Mr. Moritsugu: Thank you.
Council Chair Rapozo: I will call the meeting back to order. Further
discussion?
There being no objections, the meeting was called back to order, and
proceeded as follows:
The motion to approve C 2016-91 was then put, and unanimously carried.
COUNCIL MEETING 55 APRIL 6, 2016
CLAIMS:
C 2016-92 Communication (03/04/2016) from the County Clerk,
transmitting a claim filed against the County of Kaua`i by Andy Kakutani, for
damage to his vehicle, pursuant to Section 23.06, Charter of the County of Kaua`i.
C 2016-93 Communication (03/08/2016) from the County Clerk,
transmitting a claim filed against the County of Kaua`i by Island Insurance
Company, Ltd., as subrogee of Rommel S. Aguinaldo, for damage to his vehicle,
pursuant to Section 23.06, Charter of the County of Kaua`i.
C 2016-94 Communication (03/21/2016) from the County Clerk,
transmitting a claim filed against the County of Kaua`i by Chung Restaurants of
Kaua`i, LLC, for loss of revenue, pursuant to Section 23.06, Charter of the County of
Kaua`i.
C 2016-95 Communication (03/23/2016) from the County Clerk,
transmitting a claim filed against the County of Kaua`i by First Insurance Company
of Hawai`i Ltd., as subrogee of Grove Farm Company Inc., et al, for damage to their
vehicle.
Councilmember Kuali`i moved to refer C 2016-92, C 2016-93, C 2016-94, and
C 2016-95 to the County Attorney's Office for disposition and/or report back
to the Council, seconded by Councilmember Yukimura.
Council Chair Rapozo: Councilmember Kagawa.
Councilmember Kagawa: Again, three (3) out of four (4) claims are
vehicle damages, so I would like to see a breakdown of reasons why. If it is potholes
that are creating it, then let us maybe look at expending the moneys, like Mr. Teves
said, to get the hot mix equipment so that we can adequately patch potholes if we
are not going to pave any roads. Apparently, the Administration keeps saying,
"Well, we are going to pave roads, but we are going to pave when we have enough
money to do bike lanes, walkways, and whatever. So that makes me think that
paving roads is not in their thoughts right now as we are struggling financially. If
not, let us see what it takes to adequately repair potholes that are bad, like on
Olohena and wherever we find potholes. There are a lot of bad potholes. If it is
potholes, then let us look in this budget. If we need to listen to Mr. Teves and patch
potholes the proper way, instead of patching with dry mix. Thank you, Chair.
Council Chair Rapozo: Councilmember Hooser.
Councilmember Hooser: These are being referred to the County
Attorney, right? He does not have to come up here right now, but I would like him
to address the issue of dealing with claims by agencies of which we have no control
over. That is the case, I believe.
Council Chair Rapozo: Which one are you referring to?
Councilmember Hooser: Is that the restaurant one?
Council Chair Rapozo: Oh, because of the water?
COUNCIL MEETING 56 APRIL 6, 2016
Councilmember Hooser: Yes.
Council Chair Rapozo: Okay. Mauna Kea, can you come up real
quick and explain? I will suspend the rules.
Councilmember Hooser: I was not sure what we could talk about in
terms of that.
Council Chair Rapozo: I think the Charter requires all claims to be
filed through the County Clerk's Office that is why.
Councilmember Hooser: Okay.
Council Chair Rapozo: I will agree that if there is a payout then it
should come from the Department of Water and not the General Fund. Is that
something that you can address?
There being no objections, the rules were suspended.
MAUNA KEA TRASK, County Attorney: For the record, Mauna Kea
Trask, County Attorney. In regard to that one claim, I believe it is by McDonalds
for some service or whatever. Those claims to the Department of Water go to the
Board of Water Supply. They manage, control, and operate the waterworks and all
property thereof and whenever we have a claim for the Board of Water Supply, it
gets sent to there and if it is a decision for payout, it is voted over there and using
their funds, so those do not come to the Council for approval.
Council Chair Rapozo: Those do not come?
Mr. Trask: No.
Council Chair Rapozo: What about this one?
Mr. Trask: So Charter procedure under Section 23.06, I
believe, all claims get filed with the County Clerk, the County Clerk puts it on the
floor, and it is forwarded to the County Attorney. All claims under a resolution that
are settled under five thousand dollars ($5,000) can be done so without Council
authority, if determined appropriate by the County Attorney's Office via Claims
Committee. If it is a water claim, those go to the Board of Water Supply for
settlement and approval or litigation.
Council Chair Rapozo: Okay. Thank you very much. I will call the
meeting back to order. Further discussion?
There being no objections, the meeting was called back to order, and
proceeded as follows:
The motion to refer C 2016-92, C 2016-93, C 2016-94, and C 2016-95 to the
County Attorney's Office for disposition and/or report back to the Council was
then put, and unanimously carried.
COUNCIL MEETING 57 APRIL 6, 2016
COMMITTEE REPORTS:
ECONOMIC DEVELOPMENT & INTERGOVERNMENTAL RELATIONS
COMMITTEE:
A report (No. CR-EDIR 2016-01) submitted by the Economic Development &
Intergovernmental Relations Committee, recommending that the following be
Received for the Record:
"EDIR 2016-03 — Communication (03/01/2016) from the Director of
Economic Development, requesting agenda time to present the Kekaha Host
Community Benefit Program 2016 Report,"
Councilmember Kuali`i moved for approval of the report, seconded by
Councilmember Yukimura, and unanimously carried.
A report (No. CR-EDIR 2016-02) submitted by the Economic Development &
Intergovernmental Relations Committee, recommending that the following be
Received for the Record:
"EDIR 2016-04 — Communication (03/04/2016) from the County
Attorney, requesting agenda time to provide an educational "legal
information" session about the Hawai`i State Judiciary's Environmental
Court Program,"
Councilmember Kuali`i moved for approval of the report, seconded by
Councilmember Yukimura, and unanimously carried.
BUDGET & FINANCE COMMITTEE:
A report (No. CR-BF 2016-10) submitted by the Budget & Finance
Committee, recommending that the following be Approved:
"C 2016-69 — Communication (02/16/2016) from the Chief of Police,
requesting Council approval of an unbudgeted purchase of a 48 feet by 20 feet
(960 square feet) mezzanine for an approximate cost of$80,000.00, and
subsequent installation at the Kaua`i Police Department's Station in Lihu`e to
address the need for additional space for evidence storage; $50,000.00 of the
cost of the mezzanine will come from unexpended funds in Account
No. 001-1003-551.43-03, (Kaua`i Police Department, Administrative &
Technical Bureau, Repair and Maintenance Vehicles), and the remaining
$30,000.00 will come from unexpended funds in
Account No. 001-1001-551.01-01 (Kaua`i Police Department, Chiefs Office,
Regular Salaries) as a result of vacant positions,"
Councilmember Kuali`i moved for approval of the report, seconded by
Councilmember Kaneshiro, and unanimously carried.
A report (No. CR-BF 2016-11) submitted by the Budget & Finance
Committee, recommending that the following be Approved on second and final
reading:
COUNCIL MEETING 58 APRIL 6, 2016
"C 2016-70 — Communication (02/22/2016) from the Chief of Police,
requesting Council approval of an unbudgeted purchase of fifteen (15) newly
marked Ford Explorer patrol vehicles, at an estimated cost of $50,000.00 to
$55,000.00 for each vehicle (total of $750,000 to $825,000), using unexpended
funds anticipated in Account No. 001-1001-551.01-01 (Kaua`i Police
Department, Chiefs Office, Regular Salaries), to keep the Kaua`i Police
Department on track with their strategic vehicle replacement plan which
necessitates the purchase of forty-five (45) newly marked patrol vehicles over
the next three (3) years, and with the understanding that no vehicles will be
budgeted in Fiscal Year 2017,"
Councilmember Kuali`i moved for approval of the report, seconded by
Councilmember Kaneshiro.
A report (No. CR-BF 2016-12) submitted by the Budget & Finance
Committee, recommending that the following be Approved:
"Bill No. 2618 — A BILL FOR AN ORDINANCE AMENDING
ORDINANCE NO. B-2015-796, AS AMENDED, RELATING TO THE
OPERATING BUDGET OF THE COUNTY OF KAUAI, STATE OF
HAWAII, FOR THE FISCAL YEAR JULY 1, 2015 THROUGH
JUNE 30, 2016, BY REVISING THE AMOUNTS ESTIMATED IN THE
GENERAL FUND (Deputy County Attorney, Kauai Police Department Legal
Support— $30,933),"
Councilmember Kuali`i moved for approval of the report, seconded by
Councilmember Kaneshiro.
Council Chair Rapozo: Let us take up the resolutions next, and then
break for lunch afterwards.
RESOLUTIONS:
Resolution No. 2016-37 — RESOLUTION CONFIRMING MAYORAL
APPOINTMENT TO THE CHARTER REVIEW COMMISSION (Russell M. Wong):
Councilmember Kagawa moved for adoption of Resolution No. 2016-37, seconded by
Councilmember Kaneshiro, and carried by the following vote:
FOR ADOPTION: Chock, Hooser, Kagawa, Kaneshiro, Kuali`i,
Yukimura, Rapozo TOTAL — 7,
AGAINST ADOPTION: None TOTAL— 0,
EXCUSED & NOT VOTING: None TOTAL — 0,
RECUSED & NOT VOTING: None TOTAL — 0.
Resolution No. 2016-38 — RESOLUTION CONFIRMING MAYORAL
APPOINTMENT TO THE FIRE COMMISSION (Chad K Pacheco): Councilmember
Kuali`i moved for adoption of Resolution No. 2016-38, seconded by Councilmember
Yukimura.
Council Chair Rapozo: Discussion? Councilmember Kagawa.
COUNCIL MEETING 59 APRIL 6, 2016
Councilmember Kagawa: I just wanted to say that the interview that
Chad brought, I thought was a really refreshing new voice and attitude towards
serving on the Fire Commission, so I have to commend that appointment in
particular. I was really impressed with Chad and his vision and his willingness in
trying to make the Fire Department better. They have one of the biggest budgets
and we need people that are willing to think a little outside of the box and I kind of
felt that with Chad, so I am very glad with that appointment. Thank you, Chair.
Council Chair Rapozo: Any further discussion? Councilmember
Yukimura.
Councilmember Yukimura: I second that.
Councilmember Kuali`i: Third.
Council Chair Rapozo: With that, roll call, please.
The motion for adoption of Resolution No. 2016-38 was then put, and carried
by the following vote:
FOR ADOPTION: Chock, Hooser, Kagawa, Kaneshiro, Kuali`i,
Yukimura, Rapozo TOTAL— 7,
AGAINST ADOPTION: None TOTAL — 0,
EXCUSED & NOT VOTING: None TOTAL — 0,
RECUSED & NOT VOTING: None TOTAL — 0.
Council Chair Rapozo: Let us do the bill for first reading, too. I see
Norma here and I know she wanted to testify. We have had all of the discussions,
so I expect this to just move right through because we have had all of the discussion
that we could possibly have. With that, can we have the bill for first reading?
BILL FOR FIRST READING:
Proposed Draft Bill (No. 2627) — A BILL FOR AN ORDINANCE TO AMEND
CHAPTER 10, KAUAI COUNTY CODE 1987, AS AMENDED, BY ADDING A
NEW ARTICLE 5B, RELATING TO THE LIHU`E PLANNING DISTRICT:
Councilmember Kuali`i moved for passage of Proposed Draft Bill (No. 2627) on first
reading, that it be ordered to print, that a public hearing thereon be scheduled for
May 4, 2016, and referred to the Planning Committee, seconded by Councilmember
Yukimura.
Council Chair Rapozo: With that, I will suspend the rules. Can you
call up the registered speakers?
Ms. Fountain-Tanigawa: Norma Doctor Sparks.
Council Chair Rapozo: Ms. Sparks.
There being no objections, the rules were suspended.
NORMA DOCTOR SPARKS: Good morning, Norma Doctor Sparks. I am
also representing our company, Families First Hawai`i Services. I apologize that I
COUNCIL MEETING 60 APRIL 6, 2016
did not testify earlier, but I do support further clarification of this Bill and to have
cautious steps taken before it actually goes through. I think the public hearing will
be very helpful. I wanted to bring up an experience of ours. We bought our house
in Hawai`i Kai in the late 1970s and at that time there was a marina, a beautiful
bay, and open spaces. When we moved to the mainland, we did not come back for
about six (6) months or so and when we came back, we were shocked that there was
so much construction going on in the middle of the valley with a lot of density in it.
It really changed the character of Hawai`i Kai at this time. I know that one of the
things that we wanted to do when we returned to Kaua`i is because we wanted to
have this rural setting—it is not as rural as when I grew up of course, but we
wanted to have that ambiance as well. I also want to acknowledge the need for
affordable housing, as part of my father's trust business. We do rent out a number
of housing units on Kaua`i. I know that when I just advertised on Craigslist for a
three (3) bedroom unit, I had over thirty (30) inquiries and about twenty (20)
walkthroughs. It was very difficult because there were many families that were
also represented in that. However, in looking at any kind of amendment, balancing
out the need for affordable housing, as well as need to maintain the ambiance of
Kaua`i is important. I worry, as many of the speakers and you spoke this morning,
about the density, the parking, the noise, the people all over the place, whether or
not the County will actually have the enforcement abilities, and whether or not the
associations will actually follow through on the covenants on their properties. I do
not think associations have actually taken steps to actually enforce some of the
covenants that do run with the leases or the housing mortgages as well. So I just
want you to consider thirty (30) years from now and what this possible amendment
might do and whether or not the whole island should have a more uniform and
holistic plan. Thank you again for this opportunity.
Council Chair Rapozo: Thank you. With that, I will call the meeting
back to order. Any further discussion? Seeing none, roll call.
There being no objections, the meeting was called back to order, and
proceeded as follows:
The motion for passage of Proposed Draft Bill (No. 2627) on first reading,
that it be ordered to print, that a public hearing thereon be scheduled for
May 4, 2016, and referred to the Planning Committee was then put, and
carried by the following vote:
FOR PASSAGE: Chock, Hooser, Kagawa, Kaneshiro, Kuali`i,
Yukimura, Rapozo TOTAL — 7*,
AGAINST PASSAGE: None TOTAL— 0,
EXCUSED & NOT VOTING: None TOTAL — 0,
RECUSED & NOT VOTING: None TOTAL — 0.
(*Pursuant to Rule No. 5(b) of the Rules of the Council of the County of Kaua`i,
Councilmember Kagawa was noted as silent, but shall be recorded as an affirmative
for the motion.)
Council Chair Rapozo: With that, motion carries. We will take our
lunch break at this time and be back at 1:30 p.m. for the public hearing.
There being no objections, the meeting recessed at 11:53 a.m.
COUNCIL MEETING 61 APRIL 6, 2016
The meeting reconvened at 1:59 p.m., and proceeded as follows:
(Councilmember Yukimura was noted as excused.)
(Council Chair Rapozo was noted as excused.)
Councilmember Kagawa: I would like to call the council meeting back
to order. Clerk, can you please read the next item?
Ms. Fountain-Tanigawa: Vice Chair, we are on page 8, bill for second
reading.
BILL FOR SECOND READING:
Bill No. 2618 — A BILL FOR AN ORDINANCE AMENDING ORDINANCE
NO. B-2015-796, AS AMENDED, RELATING TO THE OPERATING BUDGET OF
THE COUNTY OF KAUAI, STATE OF HAWAII, FOR THE FISCAL YEAR
JULY 1, 2015 THROUGH JUNE 30, 2016, BY REVISING THE AMOUNTS
ESTIMATED IN THE GENERAL FUND (Deputy County Attorney, Kauai Police
Department Legal Support — $30,933): Councilmember Kuali`i moved for adoption of
Bill No. 2618 on second and final reading, and that it be transmitted to the Mayor for
his approval, seconded by Councilmember Kaneshiro.
Councilmember Kagawa: Any discussion? If not, I just want to
compliment Mauna Kea. I have total confidence in his ability in taking this new
person on and trying to guide this person to assist KPD and doing whatever they
want. I like the fact that Mauna Kea did keep a small percentage to assist with
County Attorney's duties, because who knows? That person might end up with some
extra time and we would not want that person just sitting around and we could put
him to good use. I think it will be a win-win by having at least a few of that
percentage under the County Attorney's Office. Roll call.
The motion for adoption of Bill No. 2618 on second and final reading, and that
it be transmitted to the Mayor for his approval was then put, and carried by the
following vote:
FOR ADOPTION: Chock, Hooser, Kagawa, Kaneshiro, Kuali`i,
Yukimura TOTAL— 6*,
AGAINST ADOPTION: None TOTAL— 0,
EXCUSED & NOT VOTING: Rapozo TOTAL— 1,
RECUSED & NOT VOTING: None TOTAL—0.
(*Pursuant to Rule No. 5(b) of the Rules of the Council of the County of Kauai,
Councilmember Yukimura was noted as silent (not present), but shall be recorded as
an affirmative for the motion.)
Ms. Fountain-Tanigawa: Council Chair Rapozo should be here shortly.
Councilmember Kagawa: Thank you. Next item, please.
COUNCIL MEETING 62 APRIL 6, 2016
EXECUTIVE SESSION:
ES-844 Pursuant to Hawai`i Revised Statutes (HRS) Sections 92-4
and 92-5(a)(4), and Kaua`i County Charter Section 3.07(E), the Office of the County
Attorney, on behalf of the Council requests an Executive Session to brief the Council
in matters concerning changing the governmental structure of the County of Kaua`i
from the current system to a council-manager form of government, as well as
discussion on opinion issued by the Office of the County Attorney as it relates to
this matter, and related matters. This briefing and consultation involves
consideration of the powers, duties, privileges, immunities, and/or liabilities of the
Council and the County as they relate to this agenda item.
ES-845 Pursuant to Hawai`i Revised Statutes (HRS) Sections 92-4,
92-5(a)(4), and Kaua`i County Charter Section 3.07(E), the Office of the County
Attorney requests an Executive Session with the Council to provide the Council
with a briefing on Special Counsel's continued representation of the Planning
Department in TVR appeals and related matters. The briefing and consultation
involves consideration of the powers, duties, privileges, immunities, and/or
liabilities of the Council and the County as they relate to this agenda item.
Councilmember Kagawa: Can I have a motion to go into Executive
Session?
Councilmember Chock moved to convene in Executive Session for ES-844 and
ES-845, seconded by Councilmember Kaneshiro.
Councilmember Kagawa: The plan is to go in Executive Session, take
the TVR matter first since it has the funding obligation, then we will come back out
here. We will try and go in and get that done. Roll call, please.
The motion to convene in Executive Session for ES-844 and ES-845 was then
put, and carried by the following vote:
FOR EXECUTIVE SESSION: Chock, Hooser, Kagawa, Kaneshiro,
Kuali`i, Yukimura TOTAL — 6*,
AGAINST EXECUTIVE SESSION: None TOTAL — 0,
EXCUSED & NOT VOTING: Rapozo TOTAL— 1,
RECUSED & NOT VOTING: None TOTAL — 0.
(*Pursuant to Rule No. 5(b) of the Rules of the Council of the County of Kauai,
Councilmember Yukimura was noted as silent (not present), but shall be recorded as
an affirmative for the motion.)
Ms. Fountain-Tanigawa: Councilmember Yukimura will be here
shortly, as well as Council Chair Rapozo. We have five (5) to go into Executive
Session.
Councilmember Kagawa: Thank you. We will convene in Executive
Session.
COUNCIL MEETING 63 APRIL 6, 2016
There being no objections, the meeting recessed at 2:05 p.m.
The meeting reconvened at 2:28 p.m., and proceeded as follows:
(Councilmember Yukimura was noted as present.)
(Council Chair Rapozo was noted as present.)
Council Chair Rapozo: Meeting is called back to order. Next item,
please.
Ms. Fountain-Tanigawa: We are on page 4, C 2016-88.
There being no objections, C 2016-88 was taken out of order.
COMMUNICATIONS:
C 2016-88 Communication (03/17/2016) from the County Attorney,
requesting authorization to expend funds up to $40,000.00 for Special Counsel's
continued services provided to the Planning Department for Transient Vacation
Rental (TVR) appeals, and related matters: Councilmember Kagawa moved to
approve C 2016-88, seconded by Councilmember Kuali`i.
Council Chair Rapozo: Any discussion? Public testimony? I will
suspend the rules with no objections.
There being no objections, the rules were suspended.
ALEXIS BOILINI: Alexis Boilini. I guess I am just reading it in
so that I am sure it is in. I am not sure if I am crossing over into what you spoke of
before. "My name is Alexis Boilini and I thank the Councilmembers for taking the
time to listen to my testimony today. I am here today to comment on the County
Attorney's request for forty thousand dollars ($40,000) more for special counsel's
continued services provided to the Planning Department for TVR appeals and
related matters, as well as a separate fund for their liability on TVR appeals and
related matters. I ask that you consider the following facts as you reflect on where
our taxpayer money is being spent and the most likely fact that this course being
taken will cost a whole lot more. On January 13, 2016, the Planning Department
came to you with graphs depicting the tourism growth of hotels versus Airbnbs, also
known as the `UBER effect' and the chart was missing a few bed and breakfasts and
homestays that were misidentified as TVRs in the enforcement sweep, supposedly
directed by the Council is March 2015. Airbnb participants are difficult to locate.
Apparently, the chart and explanation was compelling enough for all seven (7) of
the Councilmembers to vote to increase funding to enforce illegal TVRs, yet four (4)
days later, instead of the difficult due process it takes to locate Airbnb members, the
homestays and bed and breakfasts were targeted for fine violations, again,
misidentifying them as illegal transient vacation rentals. We have wondered for
over one (1) year why they will not identify us for what we clearly are, an actual bed
and breakfast, or in other cases, a homestay. The unintended consequence of never
defining the term `bed and breakfast' and never completing an ordinance to amend
the Comprehensive Zoning Ordinance (CZO) with clear standards for bed and
breakfasts is where we find ourselves now. The 2000 General Plan and again the
COUNCIL MEETING 64 APRIL 6, 2016
2005 General Plan recommended the term `bed and breakfast facility' must be
defined. It never was and it still is not defined in the CZO. It is only
cross-referenced. The 2005 General Plan recommends when local governments
consider writing new zoning regulations to consider whether the regulation is
consistent with the prevailing legal doctrine, which requires that all citizens receive
equal protection under the law and that due process is followed when implementing
and enforcing regulations. Due process is required to be performed before
enforcement, not after, as in the case of misidentifying homestays and bed and
breakfast violations. The bed and breakfast ordinance was never enacted under the
requirements set forth in Chapter 91 of the American Planning Association (APA),
although eight (8) bed and breakfast between 1988 and 1999 were given a letter of
agreement and they held permits, we have found no evidence there was actually a
clear set of standards and permit processes enacted under the requirements set
forth in the rules in any format under Chapter 91-25.26 and 91-3."
Council Chair Rapozo: Hold on right there, because your first
three (3) minutes is up. Is there anyone else who wants to testify on this item? If
not, you can continue, Ms. Boilini.
Ms. Boilini: Thank you. "So when we see the sentence
that homestays are presently operated under the use process, we must ask where
that ordinance is and why use permits were not made available from 1999 to 2015.
When these cases move from the local level to the federal level the forty thousand
dollars ($40,000) requested today will have been wasted seed money. Those in
contested-case hearings are resident owners/operators of successful businesses that
have been continuously operating and paying their taxes since immediately after
Iniki. Many were responsible for jumpstarting the economy after Iniki, while it
took years in many cases for big hotels to be rebuilt. Lack of enforcement over a
twenty-three (23) year time period for a set of laws that were never put through an
APA process could cost the taxpayers dearly to defend. When facts and laws do not
matter, one must look to the emotion of the issue. To witness the first in a series of
hearings, one feels there is distinct appearance of discrimination due to ancestry
race and age. Watching the political posturing and the badgering of witnesses in
the first contested hearing seemed counterproductive instead of searching for
reasonable solutions. Forty thousand dollars ($40,000) pales in comparison to
defending against an abuse of power under the collar of law. The Council is the
only official leadership that has the power to come up with a solution in ordinance
form. Recognizing that there never was an available process for homestays and bed
and breakfasts is the start of that solution. Those Councilmembers that were here
during the TVR ordinance in 2008 know that they separated out the bed and
breakfast and homestays from Ordinance No. 864 to be addressed later because
they were not worried about them and they did not feel they were the problem and
recognized them as an important choice in alternative traveler accommodations.
The ball is truly in your court." I would like to add "how can you find when you
have not yet defined?" I put with it an ordinance that I did find in my research over
the last year and I just recently found it. It was an ordinance and it has no date,
but if you read this ordinance carefully, you can see that there was no permit
process available. They were building one for TVRs and bed and breakfasts
together under one (1) ordinance, when probably, in fact, in the discussion, it
became very difficult because bed and breakfasts create a whole new problem. The
standards are much different than a homestay, so they separated out the bed and
breakfasts and they worked on the TVR issue. That is what I meant, the TVR and
COUNCIL MEETING 65 APRIL 6, 2016
the bed and breakfast and homestay issue. If you read this, you see where it was
supposed to be put in the CZO and never was. Again, I just recognize 91. There
was never actually a process that was developed for bed and breakfasts. Thank
you.
Council Chair Rapozo: Thank you very much. Councilmember
Yukimura.
Councilmember Yukimura: When you refer to what you have attached,
you actually mean a bill, right? An ordinance is a law, so I just wanted to clarify
that.
Ms. Boilini: Correct, I am sorry.
Councilmember Yukimura: Where did you get this from?
Ms. Boilini: When I first started researching this, I had
this in pile of stuff and now that I am preparing for my case, I am going through
each and every document. I remember seeing this at the very beginning and
thinking, "Oh, there was an ordinance for bed and breakfast," so maybe there was.
Council Chair Rapozo: Okay. You have answered the question.
Thank you.
Ms. Boilini: I would love to know where this came from
and when it was worked on.
Council Chair Rapozo: Thank you. The meeting is called back to
order. Further discussion? Councilmember Hooser.
There being no objections, the meeting was called back to order, and
proceeded as follows:
Councilmember Hooser: What are we on again?
Council Chair Rapozo: We are on the open session item to vote on
the forty thousand dollars ($40,000).
Councilmember Hooser: Okay, so that says "transient vacation
rentals." It does not say bed and breakfast or homestay.
Councilmember Yukimura: It says "or other related matters." Can we
clarify that?
Council Chair Rapozo: Yes. Mr. Trask. I will suspend the rules.
There being no objections, the rules were suspended.
Mr. Trask: Aloha Honorable Chair and
Councilmembers. For the record, Mauna Kea Trask, County Attorney.
COUNCIL MEETING 66 APRIL 6, 2016
Council Chair Rapozo: The question is that the posting language
states forty thousand dollars ($40,000) for special counsel's continued services
provided to the Planning Department in TVR appeals and related matters.
Mr. Trask: Correct. These are for cases that Ms. Broder
is representing the Kaua`i Planning Department for and these were the first initial
cases—this body and the Planning Department characterized them as "low-hanging
fruit." The previous testimony, Ms. Boilini—her case is not covered under this
request. I believe hers is a homestay/bed and breakfast type of thing and that is not
within this request. This is Ms. Broder's cases.
Council Chair Rapozo: So this money is to be used specifically for
TVR appeals?
Mr. Trask: Yes, the cases that Ms. Broder was
contracted for and these are the NCU certificates or the lack thereof.
Council Chair Rapozo: Right. Councilmember Yukimura.
Councilmember Yukimura: So NCU meaning "Nonconforming Use."
Can you verify or clarify that none of this money is going to go to any contested
cases regarding homestays?
Mr. Trask: That is my understanding. I would like to go
and look over each and every one of these because subsequent to change in law, you
see a lot of things that change. I am not sure...
Council Chair Rapozo: Let us do this—this money, should it get
approved today, will be used specifically for TVR appeals.
Mr. Trask: Correct.
Council Chair Rapozo: If you need extra money for homestay
appeals, then you need to come back.
Mr. Trask: The County attorneys are taking those
homestay contested cases in-house. So we are not asking money for those at all.
Council Chair Rapozo: Okay. Councilmember Yukimura.
Councilmember Yukimura: But there is also the hearings officer that
gets paid, not as special counsel.
Mr. Trask: No, this is not for hearings officer money
either.
Councilmember Yukimura: Right, but there is a hearings officer involved
in the contested case for homestays and the money for the hearings officer comes
from where? Is that from a fund in the Planning Department?
COUNCIL MEETING 67 APRIL 6, 2016
Mr. Trask: I think so. The hearings officer who they
have now, I think he is hearing Kaua`i Springs, too, and all of the contested case
appeals.
Council Chair Rapozo: Well, let us just focus on this money, this
item; not everything else. We can have that discussion later. Right now, the item
on the agenda is forty thousand dollars ($40,000), which we have a contract with
this special counsel already.
Mr. Trask: Correct.
Council Chair Rapozo: And it is for that contract only?
Mr. Trask: Yes. These are the only remaining cases. It
was about ten (10) and now it is about five (5).
Council Chair Rapozo: Okay.
Mr. Trask: Even as we move forward, we are not going
to contact anymore, even with TVRs. We are going to take those in-house as well,
because that is the direction of yourself and the Administration.
Council Chair Rapozo: Okay. Councilmember Hooser.
Councilmember Hooser: Just to clarify a little bit more, none of these
funds will go toward cases involving bed and breakfast or homestays?
Mr. Trask: The bed and breakfast and the homestay
cases are the ones that are taken in-house, correct. These are for specific cases that
were contracted for late 2013, early 2014, when the Planning Department was
looking to enforce the "low-hanging fruit," those who did not have NCU certificates
that were advertising.
Councilmember Hooser: Right, but none of those are bed and
breakfast or homestays?
Mr. Trask: For instance, a case that is no longer on part
of this, some of them are trying to convert to bed and breakfast or homestays. So
they may not have initiated as such, but because of the discussions on this floor and
people trying to go through perhaps loopholes or whatever, they are trying to
convert to that, because all they have do is move into it. That is why I am hesitant
to be able to answer specifically, "Do they involve?" Again, on this floor, people will
argue what they see. The County what it sees. The department will argue what it
sees. To give a definitive is difficult, but these are the cases that you have
contracted with, in their inception started off as vacation rentals. I do not know
anything about these cases. I am not handling these cases; Ms. Broder is. So she
would really be the appropriate one to talk to. That is the only reason why I am
qualifying today because today someone could say, "I am going to move into that
house and now it is a bed and breakfast or a homestay because I live in it."
Council Chair Rapozo: But the appeal has already been filed?
COUNCIL MEETING 68 APRIL 6, 2016
Mr. Trask: Correct.
Council Chair Rapozo: The appeal is on the record. Are all of those
appeals that are being dealt with my Ms. Broder or whatever her name is, are they
TVR appeals?
Ms. Trask: TVR and related matters, correct.
Council Chair Rapozo: And "related matters?"
Mr. Trask: Yes, because some of them are like violation
SMA, because they are in the SMA...
Council Chair Rapozo: But it is part of the TVR appeal?
Mr. Trask: Correct.
Council Chair Rapozo: That is all I am trying to get at. The term
"appeal" is the general term.
Mr. Trask: Yes.
Council Chair Rapozo: In the appeal you have all of these different
issues that are being argued.
Mr. Trask: Correct.
Council Chair Rapozo: I am just asking you, and it is a "yes" or a
"no," is this forty thousand dollars ($40,000) being used for the TVR appeals being
handled by Ms. Broder?
Mr. Trask: To the best that I can say, yes.
Council Chair Rapozo: Sometimes attorneys drive me crazy.
Anymore questions for the attorney? If not, thank you very much. I will call the
meeting back to order. Further discussion? If not, roll call.
There being no objections, the meeting was called back to order, and
proceeded as follows:
The motion to approve C 2016-88 was then put, and carried by the following
vote:
FOR APPROVAL: Chock, Hooser, Kagawa, Kaneshiro, Kuali`i,
Yukimura, Rapozo TOTAL — 7,
AGAINST APPROVAL: None TOTAL — 0,
EXCUSED & NOT VOTING: None TOTAL— 0,
RECUSED & NOT VOTING: None TOTAL — 0.
Council Chair Rapozo: With that, that concludes the official agenda.
We will report back in Executive Session for the last item. Thank you very much.
COUNCIL MEETING 69 APRIL 6, 2016
ADJOURNMENT.
There being no further business, the Council Meeting adjourned at 2:41 p.m.
Respectfully submitted,
QP/4- Th
JADE K. FOUNTAIN-TANIGAWA
County Clerk
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