HomeMy WebLinkAbout04/11/2018 Council minutes COUNCIL MEETING
APRIL 11, 2018
The Council Meeting of the Council of the County of Kaua`i was called to order
by Council Vice Chair Ross Kagawa at the Council Chambers, 4396 Rice Street,
Suite 201, Lihu`e, Kaua`i, on Wednesday, April 11, 2018 at 8:33 a.m., after which the
following Members answered the call of the roll:
Honorable Arthur Brun (present at 8:35 a.m.)
Honorable Mason K. Chock
Honorable Ross Kagawa
Honorable Arryl Kaneshiro
Honorable Derek S.K. Kawakami (present 8:37 a.m.)
Honorable JoAnn A. Yukimura (excused at 1:38 p.m.)
Honorable Mel Rapozo (present at 10:00 a.m.)
Council Vice Chair Kagawa: Let me go over the Order of the Day real
briefly. We have the Council Meeting and at 1:30 p.m., we have the public hearings
for Public Safety & Transportation Committee, Bill No. 2695, banning of whips,
Economic Development & Intergovernmental Relations Committee, Bill No. 2697,
revocable permits, and the Budget & Finance Committee, Bill No. 2700,
transportation revenue. Those are the three (3) public hearing items. At 3:30 p.m.,
we have a certificate and presentation for the Youth Engagement and Action for
Health, sponsored by Chair Rapozo. A correction that I want to make is that Council
Chair is out not for a blessing, but he is out for the National Public Safety
Telecommunications Week. With that, we will start the meeting.
APPROVAL OF AGENDA.
Councilmember Chock moved for approval of the agenda as circulated,
seconded by Councilmember Yukimura, and carried by a vote of 4:0:3
(Councilmember Brun, Councilmember Kawakami, and Chair Rapozo were
excused).
Council Chair Rapozo:
MINUTES of the following meetings of the Council:
March 21, 2018 Special Council Meeting
March 28, 2018 Public Hearing re: Bill No. 2675
Councilmember Chock moved to approve the Minutes as circulated, seconded
by Councilmember Kaneshiro.
Council Vice Chair Kagawa: Is there any discussion or public testimony?
COUNCIL MEETING 2 APRIL 11, 2018
There being no objections, the rules were suspended to take public testimony.
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
The motion for approval of the Minutes as circulated was then put, and carried
by a vote of 4:0:3 (Councilmember Brun, Councilmember Kawakami, and Chair
Rapozo were excused).
Council Vice Chair Kagawa: Next item, please.
CONSENT CALENDAR:
C 2018-90 Communication (03/05/2018) from the Director of Finance,
transmitting for Council information, the Third Quarter Statement of Equipment
Purchases for Fiscal Year 2017-2018, pursuant to Section 17 of Ordinance No.
B-2017-821, the Operating Budget of the County of Kaua`i for Fiscal Year 2017-2018.
C 2018-91 Communication (03/12/2018) from Councilmember Chock,
transmitting for Council consideration and confirmation, the appointment of Erica
Jolie Anuhea Taniguchi to the Public Access, Open Space, Natural Resources
Preservation Fund Commission (Anahola— Ha ena)—Term ending 12/31/2020.
C 2018-92 Communication (03/12/2018) from the Housing Director,
transmitting for Council consideration, a Resolution Authorizing The Filing Of The
Kauai County 2018 Action Plan (Home Investment Partnership Program) With The
Department Of Housing And Urban Development, United States Of America, For A
Grant Under Title II Of The Cranston-Gonzalez National Affordable Housing Act
(Public Law 101-625), As Amended.
C 2018-93 Communication (03/12/2018) from the Housing Director,
transmitting for Council consideration, a Resolution Authorizing The Filing Of The
Kauai County 2018 Action Plan (Community Development Block Grant) With The
Department Of Housing And Urban Development, United States Of America, For A
Grant Under Title I Of The Housing And Community Development Act Of 1974 And
1987 (Public Laws 93-383 And 100-242), As Amended.
C 2018-94 Communication (03/20/2018) from Councilmember Kaneshiro,
providing written disclosure of a possible conflict of interest and recusal relating to
Bill No. 2698, the Mayor's Proposed Operating Budget for Fiscal Year 2018-2019
regarding the appropriation to Kaua`i Soil Conservation in the Department of Public
Works — Grant-In-Aid, as he is the Director for the East Kauai Soil & Water
Conservation District.
C 2018-95 Communication (03/20/2018) from Councilmember Kaneshiro,
providing written disclosure of a possible conflict of interest and recusal relating to
Bill No. 2698, the Mayor's Proposed Operating Budget for Fiscal Year 2018-2019
regarding the appropriation to Grove Farm (Puhi Metals Recycling) Liabilities in the
Department of Finance —Administration and 800 MHz Radio Site Lease: Grove Farm
COUNCIL MEETING 3 APRIL 11, 2018
appropriation in the Emergency Management Agency, as he is a Project Manager
employed by Grove Farm Company, Inc.
C 2018-96 Communication (03/20/2018) from Councilmember Chock,
providing written disclosure of a possible conflict of interest and recusal relating to
Bill No. 2698, the Mayor's Proposed Operating Budget for Fiscal Year 2018-2019
regarding the appropriation for Leadership Kaua`i training in the Office of the Mayor,
as he is a volunteer and facilitator for the annual Leadership Kaua`i adult class; and
Leadership Kauai and his company, Kupu A`e Leadership Development, are partners
in leadership initiatives on Kauai.
C 2018-97 Communication (03/27/2018) from the Director of Finance,
transmitting for Council information, the Period 6 Financial Reports — Statement of
Revenues, Statement of Expenditures and Encumbrances, Revenue Report, and
Detail Budget Report as of December 31, 2017, pursuant to Section 21 of Ordinance
No. B-2017-821, relating to the Operating Budget of the County of Kauai for Fiscal
Year 2017-2018.
C 2018-98 Communication (03/28/2018) from Councilmember Kaneshiro,
providing written disclosure of a possible conflict of interest and recusal relating to
Bill No. 2698, the Mayor's Proposed Operating Budget for Fiscal Year 2018-2019
regarding the appropriation to the Kaua`i Philippine Cultural Center in the Office of
the Mayor—Grant-In-Aid, as his immediate family member is a member of the Board
of Directors and is a Corporate Officer of the organization.
C 2018-99 Communication (03/28/2018) from Councilmember Kaneshiro,
providing written disclosure of a possible conflict of interest and recusal relating to
C 2018-27, Grant of Easements from Grove Farm Properties, Inc., conveying
easements to the County of Kaua`i, Tax Map Key No. (4) 3-3-018:009, Lihu`e, Kaua`i,
Hawaii, for access, utility, and drainage, due to his employment with Grove Farm
Company, Inc.
C 2018-100 Communication (04/02/2018) from Councilmember Kawakami,
transmitting for Council consideration, a Resolution Appointing Derek S.K.
Kawakami As Representative And Ross Kagawa As Alternate To The Executive
Committee Of The Hawai`i State Association Of Counties.
Councilmember Kaneshiro moved to receive C 2018-90, C 2018-91, C 2018-92,
C 2018-93, C 2018-94, C 2018-95, C 2018-96, C 2018-97, C 2018-98, C 2018-99,
and C 2018-100 for the record, seconded by Councilmember Chock.
Council Vice Chair Kagawa: Any discussion? Anyone from the public
wishing to speak on these?
There being no objections, the rules were suspended to take public testimony.
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
COUNCIL MEETING 4 APRIL 11, 2018
The motion to receive C 2018-90, C 2018-91, C 2018-92, C 2018-93, C 2018-94,
C 2018-95, C 2018-96, C 2018-97, C 2018-98, C 2018-99, and C 2018-100 for
the record was then put, and carried by a vote of 4:0:3 (Councilmember Brun,
Councilmember Kawakami, and Chair Rapozo were excused).
Council Vice Chair Kagawa: Madame Clerk, may we take any police items
so that we can get them out? If not, let us proceed.
JADE K. FOUNTAIN-TANIGAWA, County Clerk: We are on page number 3,
Communications.
(Councilmember Brun was noted as present.)
COMMUNICATIONS:
C 2018-101 Communication (03/20/2018) from the Life's Choices Kaua`i
Coordinator, requesting Council approval to apply for, receive, and expend Federal
funds from the Drug Free Communities Grant through the Office of National Drug
Control Policy, and the Department of Health and Human Services, Substance Abuse
and Mental Health Services Administration, Center for Substance Abuse Prevention,
in the amount of $125,000.00 per year for a period of five (5) years, beginning
September 29, 2018: Councilmember Kaneshiro moved to approve C 2018-101,
seconded by Councilmember Yukimura.
Council Vice Chair Kagawa: Any discussion? Anybody from the public
wishing to speak on this?
There being no objections, the rules were suspended to take public testimony.
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
The motion to approve C 2018-101 was then put, and carried by a vote of 5:0:2
(Councilmember Kawakami and Council Chair Rapozo were excused).
Council Vice Chair Kagawa: Madame Clerk, can we take
Resolution No. 2018-16, as I see Erica sitting in the audience?
There being no objections, Resolution No. 2018-16 was taken out of order.
RESOLUTIONS:
Resolution No. 2018-16 — RESOLUTION CONFIRMING COUNCIL
APPOINTMENT TO THE PUBLIC ACCESS, OPEN SPACE, NATURAL
RESOURCES PRESERVATION FUND COMMISSION (Erica Jolie Anuhea
Taniguchi — Anahola — He ena): Councilmember Kaneshiro moved for adoption of
Resolution No. 2018-16, seconded by Councilmember Chock.
COUNCIL MEETING 5 APRIL 11, 2018
Council Vice Chair Kagawa: Any discussion? Anybody from the public
wishing to speak on this?
There being no objections, the rules were suspended to take public testimony.
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
Councilmember Yukimura: Thank you. I want to thank Councilmember
Chock for bringing forth this nomination and Ms. Taniguchi for being willing to serve.
At her interview a week ago, we really saw what a thoughtful and committed young
woman this is and I think Ms. Taniguchi is going to do a great job on the Open Space,
Public Access, Natural Resources Preservation Fund Commission.
Council Vice Chair Kagawa: Councilmember Chock.
Councilmember Chock: Thank you, Erica. Thank you for committing
to serve and I hope that your time with the County is educational and productive.
Mahalo.
Council Vice Chair Kagawa: Further discussion? I just want to echo
Councilmember Yukimura and Councilmember Chock. I think that Erica is the right
fit for the right job and I think she will do a great job and hopefully we can have more
of these projects that can benefit the island residents sooner than later. Thank you.
With that, roll call.
(Councilmember Kawakami was noted as present.)
The motion for adoption of Resolution No. 2018-16 was then put, and carried
by the following vote:
FOR ADOPTION: Brun, Chock, Kagawa, Kaneshiro,
Kawakami, Yukimura TOTAL— 6,
AGAINST ADOPTION: None TOTAL— 0,
EXCUSED & NOT VOTING: Rapozo TOTAL— 1,
RECUSED & NOT VOTING: None TOTAL— 0.
Ms. Fountain-Tanigawa: Six (6) ayes, one (1) excused.
Council Vice Chair Kagawa: Please go back to the top. Thanks.
Ms. Fountain-Tanigawa: We are back to page number 4.
C 2018-102 Communication (03/20/2018) from the Emergency Management
Administrator, requesting Council approval to receive and expend Hurricane Shelter
Retrofit Program funds from the State of Hawaii Emergency Management Agency,
in a total amount of $650,000.00, for the retrofits of the Kalaheo Gymnasium and
Kaua`i War Memorial Convention Hall for evacuation shelter purposes:
COUNCIL MEETING 6 APRIL 11, 2018
Councilmember Yukimura moved to approve C 2018-102, seconded by
Councilmember Chock.
Council Vice Chair Kagawa: Moved and seconded to approve. Any
discussion? Anybody from the public wishing to speak on this?
There being no objections, the rules were suspended to take public testimony.
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
The motion to approve C 2018-102 was then put, and carried by a vote of 6:0:1
(Council Chair Rapozo was excused).
Council Vice Chair Kagawa: Next item, please.
C 2018-103 Communication (03/23/2018) from the Director of Finance,
transmitting for Council consideration, proposed amendments to:
• Ordinance No. B-2017-821, as amended, relating to the
Operating Budget of the County of Kauai, State of Hawaii,
for the Fiscal Year 2017-2018, by revising the amounts
estimated in the General Fund, to increase funding of the
Adolescent Treatment & Healing Center; and
• Ordinance No. B-2017-822, as amended, relating to the
Capital Budget of the County of Kaua`i, for the Fiscal Year
2017-2018, by revising the amounts estimated in the Bond
Fund and the General Fund-CIP, to increase funding of the
Adolescent Treatment & Healing Center.
Councilmember Kaneshiro moved to receive C 2018-103 for the record,
seconded by Councilmember Brun.
Council Vice Chair Kagawa: Any discussion? Councilmember Yukimura.
Councilmember Yukimura: Could I just have the Administration come
and explain for the public why this additional moneys are needed?
Council Vice Chair Kagawa: Yes. Thank you, Wally. You may proceed
when you are ready.
There being no objections, the rules were suspended.
WALLACE G. REZENTES, JR., Managing Director: Good morning,
Wally Rezentes, Jr., Managing Director. The reason for the additional request for
funding was based on the actual bids that were received for the construction of the
facility. I apologize. Doug is on the way. He has more of the specifics on the details
COUNCIL MEETING 7 APRIL 11, 2018
of it if you need it. Basically, the request is simply as a result of the actual bid
amounts that came in.
Councilmember Yukimura: Okay. I would like Doug to come up, maybe
when the actual bill comes up.
Mr. Rezentes: Yes. I think we touched on it during our
budget session, too.
Councilmember Yukimura: You did.
Mr. Rezentes: Okay.
Councilmember Yukimura: Thank you.
Council Vice Chair Kagawa: Further questions? Seeing none, thank you,
Wally. Anybody from the public wishing to speak on this?
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
The motion to receive C 2018-103 for the record was then put, and carried by
a vote of 6:0:1 (Council Chair Rapozo was excused).
Council Vice Chair Kagawa: Next item, please.
C 2018-104 Communication (03/27/2018) from the Director of Human
Resources, requesting Council approval of the provisions set forth in the CPS HR
Consulting Test Rental and Use Agreement with regards to indemnification,
attorney's fees, and interpretation; jurisdiction: Councilmember Kaneshiro moved to
approve C 2018-104, seconded by Councilmember Brun.
Council Vice Chair Kagawa: Moved and seconded to approve. Any
discussion? Anybody from the public wishing to speak on this?
There being no objections, the rules were suspended to take public testimony.
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
The motion to approve C 2018-104 was then put, and carried by a vote of 6:0:1
(Council Chair Rapozo was excused).
Council Vice Chair Kagawa: Motion carried. Next item, please.
C 2018-105 Communication (03/27/2018) from Councilmember Kawakami
and Councilmember Kaneshiro, transmitting for Council consideration, a proposal to
amend Chapter 5A, Kaua`i County Code 1987, as amended, relating to Real Property
Tax, to establish a real property tax exemption for residential homeowners who
COUNCIL MEETING 8 APRIL 11, 2018
install an automatic fire suppression system which meets minimum design
specifications: Councilmember Kaneshiro moved to receive C 2018-105 for the record,
seconded by Councilmember Brun.
Council Vice Chair Kagawa: Any discussion? Anybody from the public
wishing to speak on this? Alice. We have Proposed Draft Bill (No. 2706) that is going
to come up later in the agenda.
There being no objections, the rules were suspended to take public testimony.
ALICE PARKER: Do you want to hear me now or later?
Council Vice Chair Kagawa: Now.
Ms. Parker: Okay. Alice Parker, for the record. I think it
is a good idea to have...where am I...real property tax exemption for residential
homeowners who install an automatic fire suppression system, which meets
minimum design specifications. However, perhaps the first year, no taxes, but after
that, a decreased rate because they will not require County fire services and things
as much. But not a total tax exemption. I have not read the Bill, so perhaps I am
imputing things that are not there. Thank you.
Council Vice Chair Kagawa: Thank you, Alice. Anybody else from the
public wishing to speak on this?
Councilmember Yukimura: Is it possible to get Real Property to talk if
they are ready?
Council Vice Chair Kagawa: Sure. Are you ready to talk about this, Steve?
I have a few questions as well. Councilmember Yukimura.
Councilmember Yukimura: I just wondered whether Real Property has
been able to estimate the revenue loss that might come from this.
STEVEN A. HUNT, Real Property Tax Manager: Steve Hunt, Real
Property Tax Manager, for the record. We do not keep track of buildings that have
these suppression systems currently, nor can we anticipate who will be installing
them. Certainly, I think it is worthwhile rewarding those that will be less reliant on
some of our services, especially Fire, and hopefully preserving value in the event that
a fire did occur. My biggest concerns, I guess, are we potentially rewarding those
that are already mandated to put them in? I think there is a certain distance from
the road or hydrants, so many already have them installed, and giving a retroactive
bonus, if you will, for that is not the same as encouraging incentive for future
construction. I think those may be our two (2) separate items: are we doing it only
for new systems or are we rewarding all systems?
Councilmember Yukimura: Right now, certain homes are required to do it
if they are far from a fire station, for example?
COUNCIL MEETING 9 APRIL 11, 2018
Mr. Hunt: Fire can probably speak better to this, but I
believe the distance from either the hydrant or the road and depending on the
pressure of that waterline that runs along the road, if it is insufficient, then as part
of the building process, it becomes a requirement for certain buildings and sites.
Councilmember Yukimura: Would the forty thousand dollars ($40,000) be
a flat exemption?
Mr. Hunt: The forty thousand dollars ($40,000) would be
similar to our safe room exemption, which I think is also forty thousand dollars
($40,000), so it is difficult to put a dollar on it because it is not limited to any one tax
class. That forty thousand dollars ($40,000), if it was an exemption for the
Homestead class, because the tax rate is lower, the dollar calculation of relief is lower.
So a forty thousand dollar ($40,000) exemption for those in the Homestead class
would be about one hundred twenty-two dollars ($122) a year; whereas, if they were
doing a safe room and a vacation rental at the higher tax rate, that would be about
three hundred fifty-four dollars ($354) a year. So it just depends. Of course, there
are also relatively paying much higher taxes.
Councilmember Yukimura: Does the homeowner's fire insurance rate also
go down?
Mr. Hunt: Beyond my area of expertise, I do not know if
that is the case. I would imagine logically that if you install the sprinkler system
that you probably could get some break on insurance. I know that is certainly
something that the Fire Department has echoed in the past saying that adding
stations because the call times have been decreased, like the Kealia Station, and has
actually probably resulted in lower premiums from some of the homeowners in those
areas.
Councilmember Yukimura: Thank you.
Council Vice Chair Kagawa: Any further questions? Steve, are we
following other counties in Hawai`i or something with this Bill?
Mr. Hunt: I am not aware of any other counties that
have proposed this yet.
Council Vice Chair Kagawa: So we are leading the charge in trying to be
proactive and trying to provide some relief?
Mr. Hunt: As far as I know, yes.
Council Vice Chair Kagawa: Okay. Thank you. Councilmember
Yukimura.
Councilmember Yukimura: So you said that you are unable to estimate
what the revenue consequences will be?
COUNCIL MEETING 10 APRIL 11, 2018
Mr. Hunt: Correct.
Councilmember Yukimura: Okay. We do not know how many takers
there will be.
Mr. Hunt: Two-fold: one is I do not know whether the
Bill is going to be effectuated towards properties that have existing systems. That is
one whole segment and I do not have a count because that is not something that we
track. Two is I cannot predict how many will come in and put in new systems that
will then qualify for it.
Councilmember Yukimura: Right. Thank you.
Council Vice Chair Kagawa: Councilmember Kawakami.
Councilmember Kawakami: Have we tracked how many existing homes
are required or did you already answer that question? Does Fire have that data on
how many homes are required to have fire suppression systems?
Mr. Hunt: I do not have that data and Fire would be
probably best to answer both the questions as to when they become required and
maybe how many there are. From Real Property's perspective, what we have not
seen is that putting those in add value, because then we would probably be tracking
them. I think there is obviously cost upfront, but then there are the aesthetics seeing
sprinklers and the potential of leaks and molds. So there are some offsetting reasons
why we have not seen it on the value side.
Councilmember Kawakami: On the property tax exemption for hurricane
safe rooms, how many properties have taken advantage of our hurricane safe room
exemption program?
Mr. Hunt: For the 2018, for fiscal 2019 tax year, we have
sixty-three (63) with that exemption.
Councilmember Kawakami: Okay. How many total properties are we
talking about islandwide?
Mr. Hunt: Residential properties, excluding apartments
and condos, probably in the neighborhood of sixteen thousand (16,000) to eighteen
(18,000) single-family homes.
Councilmember Kawakami: Okay.
Council Vice Chair Kagawa: Councilmember Yukimura.
Councilmember Yukimura: For the hurricane safe rooms, we give a tax
exemption?
Mr. Hunt: We do.
COUNCIL MEETING 11 APRIL 11, 2018
Councilmember Yukimura: How much?
Mr. Hunt: Forty thousand dollars ($40,000).
Councilmember Yukimura: Okay.
Mr. Hunt: It does require that the owners get an
architect to certify that the safe room meets certain requirements and inswing doors
so that they do not get locked in, a ventilation system, and four-inch concrete ceiling.
There is an architect that stamps and approves it, then I believe the Department of
Public Works validates that the requirements have been met when it actually comes
to the construction. So there is some vetting on the frontend before the exemption
can be applied for.
Councilmember Yukimura: Okay. Thank you.
Council Vice Chair Kagawa: Thank you. I think when you say one
hundred twenty (120) per year, I am trying to figure out if we thought through in
totality how effective something like that would be to entice somebody to come
forward. If you are talking one hundred twenty dollars ($120) per year savings...it is
one thousand two hundred dollars ($1,200) over ten (10) years the savings of
putting...I do not know what kind of construction costs are required, but it is kind of
interesting. For me, the financial impact seems pretty small for the safety that you
get.
Mr. Hunt: Yes.
Council Vice Chair Kagawa: We can get Fire later. Thanks. Is everybody
finished asking questions of Steve?
Councilmember Yukimura: Yes. Thank you.
Mr. Hunt: Thank you.
Council Vice Chair Kagawa: We have a couple of questions for Fire.
KILIPAKI VAUGHAN, Deputy Fire Chief: Good morning, Councilmembers.
Kilipaki Vaughan, Deputy Fire Chief.
Council Vice Chair Kagawa: First of all, I am going to ask the obvious
question, are you folks in support of this Bill?
Mr. Vaughan: We support the intent of automatic
residential fire sprinklers. Fire sprinklers save lives. That is the ultimate thing.
Council Vice Chair Kagawa: Who does the inspections? Who would do the
inspections on these new fire sprinklers being installed in these homes? Would it be
Fire or would it be the Building Division?
COUNCIL MEETING 12 APRIL 11, 2018
Mr. Vaughan: We do witness acceptance testing of the
inspections. So it is your basic inspection. It is installed by a certified installer and
we come over and we check it and we actually watch them manipulate the valves and
the system itself, and then we approve it.
Council Vice Chair Kagawa: So if we have more construction, would that
be adding to your folks manpower?
Mr. Vaughan: No, not necessarily.
Council Vice Chair Kagawa: My fear is that I would not want to see us do
a bill that is going to add bodies to Fire, which I think for me, I would like to put the
brakes on hiring more firemen for a while. In reality, I would rather have a fifty
thousand dollar ($50,000) inspector doing it versus a one hundred thousand dollar
($100,000) fireman. It cuts half the cost already for me. I do not know if we can
massage some of that and maybe turnover some of those functions. Then that way,
we can please both sides.
Mr. Vaughan: Within the Fire Code, we are the authority
having jurisdiction over fire sprinklers.
Council Vice Chair Kagawa: Right. Councilmember Chock.
Councilmember Chock: Thank you, Mr. Chair. Do you know what the
range of the cost for these systems are?
DARYL DATE, Fire Prevention Caption: Good morning, Daryl Date, Fire
Prevention Captain. The average cost for a sprinkler system is about four dollars ($4)
a square foot. That is from design to installation.
Councilmember Chock: Okay. So to make up the difference would
take quite a few years in order for it to be enticing as we had discussed earlier? At
least a couple of years at that rate, right? I just wanted to see what the attraction is
if it will be attractive for the resident to move forward on the exemption and see what
we can expect. Thank you, Mr. Chair.
Mr. Vaughan: Maybe if I can add, I think the attraction
would be that there are multiple families living in the same home. So to protect your
family, that much more at a minimum type of cost is huge. There is no doubt that is
a huge support to the °ohana.
Councilmember Chock: Absolutely.
Council Vice Chair Kagawa: Councilmember Yukimura.
Councilmember Yukimura: So the forty thousand dollar ($40,000) tax
exemption is an ongoing benefit, right? Every year they get it, it is not like a one-shot
incentive. At four dollars ($4) a square foot, you get a forty thousand dollar ($40,000)
COUNCIL MEETING 13 APRIL 11, 2018
tax exemption, and as Steve was saying, it varies with the amount of the rate per
thousand for a home. So you will have a varying benefit cost ratio.
Mr. Date: Correct.
Councilmember Yukimura: The more expensive houses will get less of a
benefit, right? Forty thousand dollars ($40,000) is a flat amount.
Mr. Date: Yes.
Councilmember Yukimura: I am sorry, I am just trying to figure it out in
my own head, but I want to get to the conclusion. As long as my calculations are not
off. Thank you.
Council Vice Chair Kagawa: Councilmember Kaneshiro.
Councilmember Kaneshiro: Do you know how many residential units
currently have a fire system in their house?
Mr. Date: I would say not to many on Kauai. Maybe a
dozen or a little more than that.
Councilmember Kaneshiro: Okay. Thanks.
Council Vice Chair Kagawa: So the four dollars ($4) per square foot, that
does not include, like say you have an existing home that they are going to install it;
the four dollars ($4) per square foot does not include other construction costs in order
to install, right? The four dollars ($4) per square foot is the labor and materials for
the contractor who is certified and approved by you folks to install in a new house,
right? The existing houses are going to cost more, right?
Mr. Vaughan: I think there will be a slight in-scale when it
comes to existing housing and retrofitting some of those houses with a fire sprinkler
system. It can be anywhere from eight thousand dollars ($8,000) for the whole system
or maybe slide a little further up. It depends whether it is existing or brand new.
Council Vice Chair Kagawa: It all depends. For a fire sprinkler, you have
to run water through basically the ceilings of the entire house, right?
Mr. Date: You can install the sprinkler system in
different ways. You can hide it so that all the piping is within the ceiling and also
the sprinkler heads can be concealed as well with recessed sprinkler heads. Or they
could have exposed piping throughout their home and also with the exposed sprinkler
heads. So it all depends on their preference.
Council Vice Chair Kagawa: Yes, but if it is outside, it looks ugly, right? I
am just kidding. Councilmember Yukimura.
COUNCIL MEETING 14 APRIL 11, 2018
Councilmember Yukimura: Actually, it is much easier to install at time on
construction rather than retrofit as in most times the cases are whether you are
talking about sprinkler systems or anything else.
Mr. Date: You are correct, it would be easier.
Councilmember Yukimura: So one of the options would be to require it for
all new construction. That is another way of saving lives if you say that is what it is.
Mr. Vaughan: May I answer that question?
Councilmember Yukimura: Yes, please.
Mr. Vaughan: Yes, I think the State already tried to
mandate that, but it pulled back at the legislature. So it gave us kind of a home rule.
In the past few years, there have been some pretty catastrophic fires in residential
and multistory type of buildings. Marco Polo comes to mind and if you go beyond that
to London when there are all of these different towers. We support the residential
sprinkler helping to save lives, whether it is in one-family, two-family, multistory, I
think we have spoken pretty loud as a State fire council in support of that up at the
legislature. We support this here. Maybe the verbiage can be changed to really allow
for different systems to be included into it, but we support the intent.
Councilmember Yukimura: It seems that the urgency of these systems is
even greater in the high-rise multifamily because it is much harder to evacuate a
building like that than a single-family home. The Marco Polo example was a tragic
and really clear example. It is not as compelling. So as a public policy, we could make
distinctions saying that this is a higher priority, and then down the line, we have
some others or we can do it by requiring certain things and then incentivizing certain
things.
Mr. Vaughan: I do not want to split hairs between a person's
life in a home and a person's life in a multistory. To me, they are equal and are of
equal weight. So how the policy is constructed, I believe it is up to you folks to decide
that, but we support the intent of saving lives through residential sprinklers.
Councilmember Yukimura: The probability of death by fire is greater in a
high rise that does not have a sprinkler system, right?
Mr. Vaughan: That is a very hard question to answer. There
are so many different totality of circumstances that can change.
Councilmember Yukimura: Okay. So do you think that this forty
thousand dollar ($40,000) will incentivize a lot of installations?
Mr. Vaughan: I believe it will get people to start thinking
about it and really think about the benefit. I think you mentioned before that the
cost-benefit curve changes. The benefit stays the same or actually increases, because
as more families stay within the same household, again, you have a kupuna, makua,
COUNCIL MEETING 15 APRIL 11, 2018
keiki, and even great-grandchildren, maybe twenty (20) people living in the same
household because it is so hard to get a house somewhere else. To really protect those
twenty (20) lives in the same house, the benefit is exorbitant to me. It keeps on
growing and is exponential.
Councilmember Yukimura: Okay. Thank you.
Council Vice Chair Kagawa: Thank you. Further questions? Seeing none,
thank you gentlemen. Any public testimony? Mice.
Ms. Parker: Alice Parker, for the record. This is a related
question, fire protection. I live in public housing and we do not have individual fire
extinguishers. I understand that many of the public houses do. We recently had a
kitchen fire and the resident was able to put it out, but the occupants are not
instructed on how to use the fire extinguishers, and there are I think one (1) to every
four (4) units or something like that. So this place was built in '82 and I do not know
if there were any procedures for retrofitting, but I think it is not as safe as it could
be. Thank you.
Council Vice Chair Kagawa: Thank you. Anymore testimony from the
public? Seeing none, meeting is called back to order. Further discussion?
Councilmember Kawakami.
There being no further testimony, the meeting was called back to order, and
proceeded as follows:
Councilmember Kawakami: Mr. Chair, since we had robust questioning,
at this point, the Bill is actually going to come up later, but I figure I would speak to
the issue now while we have an audience. To understand the intent of this proposal
is to understand the building process. The exemptions are never designed to cover
the whole cost of a hurricane safe room and is not designed to cover the whole cost of
this residential fire suppression system. So we are not limiting it to sprinklers
because technology changes. In the building process, the value of having what we
would call a"carrot" instead of a mandate—a"carrot" is there to get somebody to start
thinking about all of these amenities that they are going to be building into the built
environment. So if you have a good architect and a good contractor, what they do
with a homeowner is they go down a checklist of all of the different things that a
builder, a homeowner, should be considering when they are going through the
building process. Thus, they will say, "There is a forty thousand dollar ($40,000) tax
exemption if you would like to shelter-in-place when the next hurricane hits." That
forty thousand dollar ($40,000) exemption is never designed to cover the cost of that
increase in construction costs of a hurricane safe room. That is designed to get a
homebuilder to start thinking, "Do I want to burden the County by having to move
all of my family members into a shelter in which this island is lacking or would I
rather be able to shelter safely in place?" That is the decision that the homeowner
will have to decide. We just recently passed an Additional Rental Unit (ARU) Bill;
we are going to be increasing density and houses are going to become closer to one
another. You may ask whom may decide to take this manini, in my opinion, property
tax exemption? Guess what? As "baby boomers" start aging, as we start planning for
COUNCIL MEETING 16 APRIL 11, 2018
that silver tsunami, we are going to have an increase of people that are aging in place.
So perhaps if you have an elder parent or grandparent and you are building an ARU
or an Additional Dwelling Unit (ADU) for them, you may consider putting a fire
suppression system, because if they were like my parents when they were alive, they
almost burned the house down weekly because they leave the stove on. Another
classification that may decide to take this amenity are families with very young
children. You take a look at the number of fires that are started by keiki playing with
lighters and it is astronomical. If you are like my family, and I have had a family
member who has a disability, that had a fire in their condo, you may want to consider
putting a fire suppression system if you have somebody with a disability. These
questions are all good questions, but if you are asking whether or not this is going to
pencil out financially, that is the question that the homebuilder is going to have to
decide because it will never cover the cost. What it does is it is an educational piece,
it provides an exemption. If I am not mistaken, I do not think the counties can
mandate fire suppression systems. I think the legislature got ahead of that and had
prohibited counties from mandating fire suppression systems. This is a vehicle to
provide some sort of subsidy to homeowners who decide to implement this public
safety measure in their own homes. Let us get one thing clear, these fire suppression
systems are not designed to replace the services that the Fire Departments provide.
The only thing that it is designed to do is to save lives, to buy people time to be able
to escape safely. That is the intent and to understand it is to understand a whole
bigger picture behind the intent of this measure. Thank you, Mr. Chair.
Council Vice Chair Kagawa: Thank you. Further discussion?
Councilmember Yukimura.
Councilmember Yukimura: Yes. I want to thank Councilmember
Kawakami because he gave a really good explanation. I appreciate it.
Council Vice Chair Kagawa: Councilmember Chock.
Councilmember Chock: I really appreciate the Bill. I think it provides
an option for families wanting to be safer. Of course, we would all like to see a little
more incentives added to these kinds of opportunities. It would be nice to see the
State be able to provide some of that in order for this to be taken advantage of and I
just think about realistically how many local families are going to bite the bullet and
actually follow through. I could foresee maybe looking at this even further and
building the package in order for making it more appealing to our families. We really
want to see this happen for everyone. I thank the introducers for the intent and the
support of this. At this point, I will definitely be supporting it. Thank you.
Council Vice Chair Kagawa: Councilmember Kawakami.
Councilmember Kawakami: I am very glad that Councilmember Chock
brought up that point as far as the State kicking in to this measure. When I was at
the State legislature, one of the first things we did is introduce a tax credit for our
suppression systems that mirrored the photovoltaic tax credit that we currently have.
But it was designed in a more responsible manner. It did have a sunset date so that
people understood that this tax incentive was not designed to go into perpetuity and
COUNCIL MEETING 17 APRIL 11, 2018
erode the general fund to infinity and beyond. That measure is still yet to be passed.
It continues to be introduced every session and hopefully at some point they will be
able to come to some sort of agreement. Thank you, Mr. Chair.
Council Vice Chair Kagawa: Further discussion? Councilmember
Yukimura.
Councilmember Yukimura: I just have a question for Fire, but I do not
want them to come up now. This is going for first reading, so it will be going to the
Committee, et cetera. I would just like to know if there is any jurisdiction where fire
suppression systems are a requirement.
Council Vice Chair Kagawa: Okay. We can have that in a written...
Councilmember Yukimura: And what the experience has been.
Council Vice Chair Kagawa: Thank you. I will suspend the rules again.
There being no objections, the rules were suspended.
Mr. Vaughan: Kilipaki Vaughan, Deputy Fire Chief. Would
that be local jurisdiction or are you talking national?
Councilmember Yukimura: Anywhere, countrywide.
Mr. Vaughan: Okay. We will do some research on that.
Councilmember Yukimura: Thank you.
Council Vice Chair Kagawa: That was a great question. It is always
helpful to know since we are being the first in Hawaii to do it with this Bill. It is nice
to see the relevant information nationwide, so I think that is a great question if we
can get answered. I just want to close that I had one (1) letter in opposition and what
it opposed was the fact that it would only be incentivizing the contractors that
perform the fire sprinklers. There are other areas of building that we want to
incentivize, such as using less energy, et cetera. I think that was where that letter
opposed. It was like, "Why do we not incentivize other things to the homeowners that
are greener and make the whole house safer?" I think we have to consider that
opposition as well. I want to echo some of the comments of Councilmember
Kawakami and Councilmember Yukimura in that I think this is something that
perhaps the State should do a tax credit on income taxes, similar to photovoltaic. Yes,
the cost of photovoltaic may be thirty thousand dollars ($30,000) to forty thousand
dollars ($40,000), much different than four thousand (4,000) or eight thousand (8,000)
or whatever we are talking about. However, the State has the big coffers and giving
an income tax credit when it provides safety to the residents you serve is a no-brainer.
It also could be for converting cesspools and those types of things. This is another
task that could be much better handled by the State, which has the majority of our
tax money in comparison to County real property taxes. I think the bigger bang would
COUNCIL MEETING 18 APRIL 11, 2018
be if the State would help out residents and incentivize residents, especially when we
are talking about saving lives.
There being no objections, the meeting was called back to order, and proceeded
as follows:
The motion to receive C 2018-105 for the record was then put, and carried by
a vote of 6:0:1 (Council Chair Rapozo was excused).
Council Vice Chair Kagawa: Madame Clerk, can we go to Proposed Draft
Bill (No. 2704)? Then we can get Wally and Doug back to work.
Ms. Fountain-Tanigawa: We are on page number 7, Bills for First
Reading.
There being no objections, Proposed Draft Bill (No. 2704) was taken out of
order.
BILLS FOR FIRST READING:
Proposed Draft Bill (No. 2704) — A BILL FOR AN ORDINANCE AMENDING
ORDINANCE NO. B-2017-821, AS AMENDED, RELATING TO THE OPERATING
BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII, FOR THE FISCAL
YEAR JULY 1, 2017 THROUGH JUNE 30, 2018, BY REVISING THE AMOUNTS
ESTIMATED IN THE GENERAL FUND (Operating Budget Transfer to the Adolescent
Treatment & Healing Center - $400,000.00): Councilmember Yukimura moved for
passage of Proposed Draft Bill (No. 2704) on first reading, that it be ordered to print,
that a public hearing thereon be scheduled for May 16, 2018, and referred to the
Budget & Finance Committee, seconded by Councilmember Chock.
Council Vice Chair Kagawa: Moved and seconded to approve on first
reading. The rules are suspended.
There being no objections, the rules were suspended.
DOUGLAS HAIGH, Chief of Buildings: Douglas Haigh, Department of
Public Works, Building Division.
Council Vice Chair Kagawa: Councilmember Yukimura.
Councilmember Yukimura: Doug, we are adding...
Mr. Haigh: One million nine hundred thousand dollars
($1,900,000).
Councilmember Yukimura: To already six million dollars ($6,000,000)?
Mr. Haigh: Correct.
COUNCIL MEETING 19 APRIL 11, 2018
Councilmember Yukimura: So we had five million dollars ($5,000,000)
from the State legislature, so the County is essentially adding two million dollars
($2,000,000) more?
Mr. Haigh: Yes.
Councilmember Yukimura: No, three million dollars ($3,000,000).
Mr. Haigh: Well, the County, a total of three million
dollars ($3,000,000), yes.
Councilmember Yukimura: Yes, so the total cost will be seven million nine
hundred thousand dollars ($7,900,000) or eight million dollars ($8,000,000) roughly.
Mr. Haigh: It sounds about right.
Councilmember Yukimura: Okay. The original estimate was five million
dollars ($5,000,000), so we are getting quite a bit over what the original estimate was
and maybe you can explain how that happened.
Mr. Haigh: The facility, as we get further and further into
design, it got larger.
Councilmember Yukimura: The facility got what?
Mr. Haigh: The facility got larger and there were
additional requirements in the facility. Also, as we developed our site, there are
considerable costs in development of the site, over one million five hundred thousand
dollars ($1,500,000) just in the site development costs. Those all add to the cost.
Councilmember Yukimura: What was the cause for the building getting
larger?
Mr. Haigh: I have not broken that down.
Councilmember Yukimura: One of the things the feasibility study said
pretty strongly was do not have male and female together and everywhere, the
Salvation Army and those places that have run these kinds of facilities have said that
is a really important principle to follow. But we are putting both male and female
and I presume that is increasing the cost in size.
Mr. Haigh: Well, the residential wing of the facility does
have a separate male side and a separate female side with a supervisor space in
between the two.
Councilmember Yukimura: So we are kind of violating a sort of standard
rule. What happens if we cannot find a contractor to run and operate? Maybe that
is a question for you, Wally.
COUNCIL MEETING 20 APRIL 11, 2018
Mr. Rezentes: As I understand it, there are all indications
from discussions that have taken place over the last two (2) or three (3) years that
there are willing participants that are wanting to bid. Of course, I cannot predict the
future like we always hope when we go out to bid that we get twelve (12) contractors
bidding on one (1) project. Sometimes there are three (3) or four (4). Sometimes there
are two (2) and sometimes there is one (1). We can only go on what we believe to be
the case and we believe there will be interested parties.
Councilmember Yukimura: Okay. Thank you.
Council Vice Chair Kagawa: Further questions for the Administration?
Seeing none, thank you gentlemen. Anybody from the public wishing to speak on this
Bill for first reading? It will be vetted a couple more times. 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. 2704) on first reading, that
it be ordered to print, that a public hearing thereon be scheduled for
May 16, 2018, and referred to the Budget & Finance Committee was then put,
and carried by the following vote:
FOR PASSAGE: Brun, Chock, Kagawa, Kaneshiro,
Kawakami, Yukimura TOTAL— 6,
AGAINST PASSAGE: None TOTAL— 0,
EXCUSED & NOT VOTING: Rapozo TOTAL— 1,
RECUSED & NOT VOTING: None TOTAL— 0.
Ms. Fountain-Tanigawa: Six (6) ayes, one (1) excused.
Proposed Draft Bill (No. 2705) — A BILL FOR AN ORDINANCE AMENDING
ORDINANCE NO. B-2017-822, AS AMENDED, RELATING TO THE CAPITAL
BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII, FOR THE FISCAL
YEAR JULY 1, 2017 THROUGH JUNE 30, 2018, BY REVISING THE AMOUNTS
ESTIMATED IN THE BOND FUND AND GENERAL FUND-CIP (CIP Budget
Transfer to the Adolescent Treatment & Healing Center - $1,900,000.00):
Councilmember Brun moved for passage of Proposed Draft Bill (No. 2705) on first
reading, that it be ordered to print, that a public hearing thereon be scheduled for
May 16, 2018, and referred to the Budget & Finance Committee, seconded by
Councilmember Kaneshiro.
Council Vice Chair Kagawa: Any discussion? Anyone from the public
wishing to speak on this?
There being no objections, the rules were suspended to take public testimony.
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
COUNCIL MEETING 21 APRIL 11, 2018
The motion for passage of Proposed Draft Bill (No. 2705) on first reading, that
it be ordered to print, that a public hearing thereon be scheduled for
May 16, 2018, and referred to the Budget & Finance Committee was then put,
and carried by the following vote:
FOR PASSAGE: Brun, Chock, Kagawa, Kaneshiro,
Kawakami, Yukimura TOTAL— 6,
AGAINST PASSAGE: None TOTAL— 0,
EXCUSED & NOT VOTING: Rapozo TOTAL— 1,
RECUSED & NOT VOTING: None TOTAL— 0.
Ms. Fountain-Tanigawa: Six (6) ayes, one (1) excused.
Council Vice Chair Kagawa: Can we go back to where we were before?
C 2018-107 Communication (03/29/2018) from the Deputy Planning Director,
on behalf of the Public Access, Open Space, Natural Resources Preservation Fund
Commission, transmitting for Council consideration, proposed amendments to the
following:
• Ordinance No. B-2017-821, as amended, relating to the
Operating Budget of the County of Kauai, for the Fiscal Year
2017-2018, by revising the amounts estimated in the Public
Access, Open Space, Natural Resources Preservation Fund, to
appropriate funds for the acquisition of the Pak Hook Tong
Cemetery and vacant land on a property in Kekaha, Kaua`i,
Hawai`i, further identified as Tax Map Key (4) 1-2-013:041;
and
• Ordinance No. B-2017-822, as amended, relating to the
Capital Budget of the County of Kauai, for the Fiscal Year
2017-2018, by revising the amounts estimated in the Public
Access, Open Space, Natural Resources Preservation Fund —
CIP, to revise the amounts estimated in the newly created
fund titled, the Public Access, Open Space, Natural Resources
Preservation Fund — CIP, to be appropriated for the Kekaha
Coastal Property, Tax Map Key (4) 1-2-013:041 - $599,000.00.
Councilmember Brun moved to receive C 2018-107 for the record, seconded by
Councilmember Kaneshiro.
Council Vice Chair Kagawa: Moved and seconded to receive. We can have
discussion now. We have members of Open Space here, as well as the Planner in
charge. Do you folks have any questions?
Councilmember Yukimura: I think for public purposes, if we could have a
presentation.
COUNCIL MEETING 22 APRIL 11, 2018
Council Vice Chair Kagawa: Ka'aina, are you ready? If you could give a
brief description and if the members of the Open Space commission want to speak as
well.
There being no objections, the rules were suspended.
KA`AINA S. HULL, Deputy Planning Director: Good morning, Council.
Ka aina Hull on behalf of the Planning Department. My apologies, we do not have
an overall large presentation to give to you folks. This was presented to you folks
back in 2017. It was ultimately deferred in order for the Planning Department to do
the work to get an appraisal for the property. We apologize for the lateness in getting
the figure to you. We did try to procure for an appraisal several times with failure to
get sufficient bids for it essentially. So that was the time delay, but we did finally
secure an appraiser and they have produced this figure and we have transmitted to
you folks under the code of confidentiality. This is a roughly two-acre parcel in
Kekaha, located in close proximity to the K3ikiaola Boat Harbor. The purpose of the
acquisition is twofold: one, to potentially use this two-acre coastal property for
recreational purposes, but also in preliminary discussions with the landowner, there
is also the adjacent Kekaha Chinese Cemetery that could be part of the acquisition
that this essentially has no real stewardship agreement or any continued thorough
maintenance of the site. For historical preservation purposes, that cemetery could be
folded into the possible acquisition. That is it in a nutshell and I apologize again for
not having a presentation.
Council Vice Chair Kagawa: I think the formal presentation can come
during Committee. I think you did a great job. Members, do you have any questions
at this time?
Councilmember Yukimura: Thank you. We have been trying to do it on
first reading so that the public knows what to testify on and at public hearing before
our Committee Meeting. So the acquisition will be done by the County and therefore
the County will own and manage this site?
Mr. Hull: Correct. In discussions as we have presented
previously, in discussions with the Department of Parks & Recreation, they did not
have the resources to manage this specific site. So the department reached out to the
community to see if there was any interest from community organizations to manage
the area and there has been an expressed interest. In fact, two (2) specific proposals
were provided for possible stewardship agreements. Ultimately, we could not act on
them because it is not a County facility or site at this time, but there has been
expressed interest from community organizations to manage the site.
Councilmember Yukimura: Who are those community organizations?
Mr. Hull: One is Kekaha Gardens and second is the
Kekaha Hawaiian Homes Association.
Councilmember Yukimura: So in your discussions with them, there is
very likely to be someone who will take up the stewardship agreement?
COUNCIL MEETING 23 APRIL 11, 2018
Mr. Hull: Those discussions were happening in 2017
ever since the deferral has been focused on the appraisal. So we have to reengage
them again, but when we had the deferral back in 2017 and seeing there was a
definite interest on their parts for managing the area.
Councilmember Yukimura: If you do not have someone ultimately, it will
fall on the County.
Mr. Hull: Correct. It may be a bit premature to talk
about it, but the Open Space Commission, as we have talked to you folks previously,
one of the problems with the Open Space Commission and its fund is while the funds
are specifically to the dedicated for acquisition, they cannot be used for things like
improvement and maintenance, which has been somewhat of a barrier for the Open
Space to get recommendations to you folks because of the inability that while there
might be possible acquisitions out there, the inability to have a long-range plan as
far as how that site will be maintained has again served as a barrier. The Open Space
has reviewed and put a proposal to the Charter Review Commission to amend the
Charter that will allow some of these funds to be used for the maintenance and
possible improvements of open space acquisitions. But ultimately, that will be up for
the vote if it makes it onto the proposed charter amendment. If it does pass, that is
also another possibility for this site. I think it would be in the interest of the
department, as well as the commission, to first and thoroughly and actively seek out
those community associations that want to do it on the frontend. Like I said, for this
particular project, it looks like we do have an expressed interest from community
organizations.
Councilmember Yukimura: Do you have a copy of that amendment that
has already been proposed?
Mr. Hull: I do not have it with me right now, but we can
get that to you.
Councilmember Yukimura: I am concerned about the wording because if
it allows for any and all maintenance or capital improvements, that money will go
very quickly and we are already worried about having money for acquisition. If it is
for improvement such that it will make acquisition possible, it seems like it might
work so the wording would have to be really carefully done.
Mr. Hull: We are in definite agreement and have been
vetting it very thoroughly with the Office of the County Attorney and it will
improvements only for acquisition sites, possible maintenance as well as for
existing...because what has come to the commission's attention is the fact that a lot
of the public and the general members of the public are asking for and pressuring you
folks, as well as the commission, for more accesses to areas like coastal areas. What
our research has uncovered is that there are hundreds of accesses out there to coastal
areas, but they are paper accesses, they are depicted on maps and tax map keys, but
they are not physically depicted and demarcated on the ground, making it impossible
for a member of the public to actually utilize those accesses. If moneys from this fund
COUNCIL MEETING 24 APRIL 11, 2018
can be used to just physically survey these sites and then possibly maintain and
improve them, thereby demarcating these accesses for the general public to be able
to actually utilize as opposed to just look at it on the map is one potential. At the end
of the day, when looking what the concern of how these moneys will be expended, it
ultimately would take a legislative action by this body to approve any funds removed
from this fund to those maintenance or capital improvement projects.
Councilmember Yukimura: It is a slippery slope, so just be careful. Thank
you very much.
Council Vice Chair Kagawa: Thank you. Further questions? Seeing none,
thank you. Anybody from the public wishing to speak on this?
EVAN PRICE: Evan Price. I would just encourage the
development of public/private partnerships to reach out to business groups and other
organizations if we can develop public/private partnership that would provide
goodwill to the organization and ultimately create the access and create the education
about the access of these sites that were just discussed. Without investing taxpayer
dollars, it could leverage businesses that contribute to the community. So just a
general comment is try to develop public/private partnerships and just a public
request that groups that want to spread goodwill to reach out to the coastal
acquisition group and see if there ways that private good intentions can be manifested
in creating greater public access and utilization of the sites and more efficient use of
the money that you are allocating. So there is goodwill out there with a lot of good
organizations, like Grove Farm and agricultural communities. They are very willing
and contribute a lot to the communities. I just encourage those types of relationships
to be developed. Thank you.
Council Vice Chair Kagawa: Thank you. Anyone else? Please state your
name for the record.
CHRIS FAYE: Chris Faye. I am probably the last person
alive that worked on that cemetery in 1987 and prior to the bicentennial, I worked
with Hongman Ji, who was part of the Chinese Heritage Society. I want to point out
that this is the most preserved Chinese cemetery on the island and there is Japanese
cemetery right next door that the County maintains. It is not really that much more
effort because Chinese cemeteries do not have lawns and things like that, so it is
really just keeping the weeds back. It is actually in really good condition as far as all
of that goes. I would be willing to paint the tombs again if that is something that
wants to be done. It is a really important property to preserve and I would be really
happy...I also represent on the fringes the people that you would be purchasing the
property from. We would all like to see the cemetery preserved and taken care of in
perpetuity. Thank you.
Council Vice Chair Kagawa: Anyone else? Alice.
Ms. Parker: Alice Parker, for the record. Thank you,
Chris. That was good information. I applaud that she is doing. Keep the open spaces,
but I have not thought about maintenance. We cannot have wild open spaces. We do
COUNCIL MEETING 25 APRIL 11, 2018
not want to end up like Manhattan Island. That is where New York City is located.
We want space. Thank you.
Council Vice Chair Kagawa: Thank you. Anybody else? Seeing none, the
meeting is called back to order.
There being no further testimony, the meeting was called back to order, and
proceeded as follows:
Council Vice Chair Kagawa: Further discussion? Seeing none, I just want
to thank the Open Space Commission and the Planning Department. For me, I am
from the west side, so I am in full support. I do not see any problem with having the
community groups step up, and if at any point they cannot do it, I think our Parks
Beautification crew is fully capable of managing that park. We do periodic
maintenance on these planters and things like that. I think on my priority list, at
least, that is much higher, taking care of an area like that for the public. So I just
want to state that regardless of whether the agreement is solid or not, that does not
hinder my vote in support. I just want to thank the commission for that. I think it
is a great acquisition and we definitely need more open space and more park areas
for local residents on west side. I have gone fishing a couple of times recently on west
side and my old spots where I had more privacy was just packed with fishermen and
residents. I think we have double the amount of residents from when I was younger,
just a lot more people and a lot more people using the beaches and the fishing grounds
and I think having more would definitely add to our enjoyment of life on west side.
With that, the motion is to receive this item.
The motion to receive C 2018-107 for the record was then put, and carried by
a vote of 6:0:1 (Council Chair Rapozo was excused).
Council Vice Chair Kagawa: Motion carried. Next item, please.
Ms. Fountain-Tanigawa: Vice Chair, the next item is C 2018-108, which
we will take after the Executive Session, so it brings us to Legal Document,
C 2018-109.
LEGAL DOCUMENT:
C 2018-109 Communication (03/20/2018) from the Acting County Engineer,
recommending Council approval of the Attorney Fee Provision in the Detention Basin
Agreement for the Rice Camp Phase II Development between the County of Kaua`i
and Rice Hoala Partners, LP, for the maintenance of detention basins located within
the Rice Camp Phase II development.
• Rice Camp — PH II Detention Basin Agreement
Councilmember Brun moved to approve C 2018-109, seconded by
Councilmember Kaneshiro.
Council Vice Chair Kagawa: Any discussion?
COUNCIL MEETING 26 APRIL 11, 2018
Councilmember Kaneshiro: I have a question.
Councilmember Yukimura: Is Housing here?
Councilmember Kaneshiro: Oh wait, this is a different detention basin
agreement. That is okay.
Council Vice Chair Kagawa: Do you have a question, Councilmember
Yukimura?
Councilmember Yukimura: Yes, I need Housing.
Council Vice Chair Kagawa: Housing or whoever from the Administration
is ready to answer. Is it the Department of Public Works? If you folks are not ready,
then we can have...oh, this is a Public Works question and they are not here. Let us
move on. We will take the item later when Public Works shows up.
Councilmember Yukimura: Okay. Thank you.
Council Vice Chair Kagawa: I know Mike was here earlier and I do not
know he was ready for that question, but I am sure that they are watching the
meeting. We can just take some other items.
Ms. Fountain-Tanigawa: Okay. Vice Chair, we are on page number 6,
Committee Reports.
COMMITTEE REPORTS:
PLANNING COMMITTEE:
A report (No. CR-PL 2018-03) submitted by the Planning Committee,
recommending that the following be Received for the Record:
"PL 2018-01 Communication (03/28/2018) from Committee Chair Chock,
requesting the presence of the Planning Director, to provide a briefing on the
West Kaua`i Community Plan,including but not limited to the projected timeline,
how community engagement is being encouraged, format of the plan, areas of
focus, and the consultants being used,"
Councilmember Chock moved for approval of the report, seconded by
Councilmember Brun.
Council Vice Chair Kagawa: Moved and seconded to approve. Any
discussion? Anybody from the public wishing to speak on this?
There being no objections, the rules were suspended to take public testimony.
COUNCIL MEETING 27 APRIL 11, 2018
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
The motion for approval of the report was then put, and carried by a vote of
6:0:1 (Council Chair Rapozo was excused).
Council Vice Chair Kagawa: Next item, please.
A report (No. CR-PL 2018-04) submitted by the Planning Committee,
recommending that the following be Approved on second and final reading:
"Bill No. 2675—A BILL FOR AN ORDINANCE TO AMEND CHAPTER 8,
KAUAI COUNTY CODE 1987, RELATING TO THE COMPREHENSIVE
ZONING ORDINANCE (Farm Worker Housing Use Permits),"
Councilmember Chock moved for approval of the report, seconded by
Councilmember Brun.
Council Vice Chair Kagawa: Moved and seconded to approve. Any
discussion? Anybody from the public wishing to speak on this?
There being no objections, the rules were suspended to take public testimony.
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
The motion for approval of the report was then put, and carried by a vote of
6:0:1 (Council Chair Rapozo was excused).
Council Vice Chair Kagawa: Next item, please.
Resolution No. 2018-17 — RESOLUTION AUTHORIZING THE FILING OF
THE KAUAI COUNTY 2018 ACTION PLAN (HOME INVESTMENT
PARTNERSHIP PROGRAM) WITH THE DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT, UNITED STATES OF AMERICA, FOR A GRANT
UNDER TITLE II OF THE CRANSTON-GONZALEZ NATIONAL AFFORDABLE
HOUSING ACT (PUBLIC LAW 101-625), AS AMENDED: Councilmember Brun
moved for adoption of Resolution No. 2018-17, seconded by Councilmember
Yukimura.
Council Vice Chair Kagawa: Moved and seconded to approve. Any
discussion? Any questions that you have for the Administration? Councilmember
Yukimura.
Councilmember Yukimura: Do you think we can have them come?
Council Vice Chair Kagawa: Housing. Do you have a question or do you
want them to give a brief description of what this Resolution does for them?
COUNCIL MEETING 28 APRIL 11, 2018
Councilmember Yukimura: I can ask a question.
Council Vice Chair Kagawa: Go ahead.
Councilmember Yukimura: This is for authorizing the filing of an Action
Plan for the HOME Investment Partnership Program (HOME). So those are
regarding HOME funds, right?
There being no objections, the rules were suspended.
KANANI FU, Housing Director: Kanani Fu, Housing Director. Correct.
Councilmember Yukimura: In order to qualify for those funds, we have to
file an Action Plan to show how we are going to use them?
Ms. Fu: Yes.
Councilmember Yukimura: Okay. The use that is being proposed here is
for the Huakai Partners construction? Can you just tell us about this project?
Ms. Fu: Sure. This project is a multifamily project to
consist of thirty-four (34) units and it is located in Waimea and it is being done in
partnership with Habitat for Humanity.
Councilmember Yukimura: So is that the land around the tech center?
Ms. Fu: Yes, this is land located around the tech
center.
Councilmember Yukimura: That is an excellent piece of property for
housing. It is close to everything, like the schools, the businesses and services, and
the parks. I am very pleased to know that this project is happening. It is really a
great one.
Ms. Fu: Yes.
Councilmember Yukimura: So it is multifamily. Will this be one of the
first projects that Habitat does as a multifamily project?
Ms. Fu: So the multifamily portion of the project is
being done by Waimea Huakai Partners who is in partnership and Habitat will
continue to facilitate the single-family buildout. So it will be a combination of both.
Councilmember Yukimura: So will there be some single-family in that
project, too?
Ms. Fu: Yes.
Councilmember Yukimura: What is the total number of affordable houses
COUNCIL MEETING 29 APRIL 11, 2018
that are going to be there?
Ms. Fu: The total amount of single-family homes has
not been finalized because we are doing site planning and it is contingent upon the
detention basin and roadways. But we approximate forty (40) to forty-four (44)
single-family homes in addition to the thirty-four (34) multi-family.
Councilmember Yukimura: So that is around seventy (70) homes.
Ms. Fu: Yes. Again, it is subject to change. We are
going through siting right now of conceptual for the homes.
Councilmember Yukimura: Okay. So habitat will do those and their
homes are fee simple with a twenty-year buyback?
Ms. Fu: Yes.
Councilmember Yukimura: Okay. What about the multifamily units?
How long will they be affordable?
Ms. Fu: The multifamily units under the program will
have sixty (60) years...they have a sixty-year affordability period.
Councilmember Yukimura: Because they are using tax credits?
Ms. Fu: The project has applied for low-income
housing tax credits, yes.
Councilmember Yukimura: Is there any chance to do what we did in
Kolopua where we give more moneys like HOME moneys and maybe get the fee to
the land after sixty (60) years?
Ms. Fu: We could potentially do that. Due to the
timing of it coming online, the HOME money is being used as a resource to match in
the competitive (inaudible) application and the money is intended to use for
predevelopment, and when rent stabilization occurs, the project pays back the money.
So it actually revolves. That is the mechanism we are going to use for this particular
project because the County does not own the land, but we still facilitate that
partnership.
Councilmember Yukimura: So that is all good. I guess I would urge the
Housing Agency to look at the way the value of getting the fee and turning the loan
into a grant. I think in sixty (60) years, we do not know what will happen, but I think
we know that affordable housing will probably still be a real need.
Ms. Fu: Yes.
COUNCIL MEETING 30 APRIL 11, 2018
Councilmember Yukimura: To think of thirty (30) families than either
being evicted or having to find some replacement housing is sort of a cautionary
thought. Thank you.
Ms. Fu: Yes.
Council Vice Chair Kagawa: Thank you. Further questions? Seeing none,
thank you.
Ms. Fu: Thank you.
Council Vice Chair Kagawa: Anybody from the public wishing to speak on
this? Further discussion? Councilmember Yukimura.
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
Councilmember Yukimura: I just want to express my delight that this
project is happening. There was a previous project slated for that place and due to
various factors, it did not start and it is such an ideal site. It will contribute to more
kids at Waimea High School, which we all want to see. It is also right in the heart of
Waimea Town and it is a walkable, bikable project that is just perfect. Thank you.
Council Vice Chair Kagawa: Councilmember Kawakami.
Councilmember Kawakami: Thank you, Mr. Chair. I am excited about the
multifamily component. When you talk about "bang for your buck," it is good to see
because Habitat for Humanity does have a multifamily condominium project on Maui
called "Kahawai" and if anybody has taken a look at it, it is a high-quality project. It
fits a lot more families under roofs under a smaller footprint, so I think that is the
way of the future. Thank you.
Council Vice Chair Kagawa: Further discussion? Seeing none, roll call.
The motion for adoption of Resolution No. 2018-17 was then put, and carried
by the following vote:
FOR ADOPTION: Brun, Chock, Kagawa, Kaneshiro,
Kawakami, Yukimura TOTAL— 6,
AGAINST ADOPTION: None TOTAL— 0,
EXCUSED & NOT VOTING: Rapozo TOTAL— 1,
RECUSED & NOT VOTING: None TOTAL— 0.
Ms. Fountain-Tanigawa: Six (6) ayes, one (1) excused.
Resolution No. 2018-18 — RESOLUTION AUTHORIZING THE FILING OF
THE KAUAI COUNTY 2018 ACTION PLAN (COMMUNITY DEVELOPMENT
BLOCK GRANT) WITH THE DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT, UNITED STATES OF AMERICA, FOR A GRANT UNDER
COUNCIL MEETING 31 APRIL 11, 2018
TITLE I OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974
AND 1987 (PUBLIC LAWS 93-383 AND 100-242), AS AMENDED: Councilmember
Brun moved for adoption of Resolution No. 2018-18, seconded by Councilmember
Kaneshiro.
Council Vice Chair Kagawa: Moved and seconded to approve. Any
discussion?
Councilmember Yukimura: Can we have Housing come up again? This,
too, is such a wonderful program that I thought we should just have a brief
description of the projects you are funding so that the public understands how we are
using these moneys and how they are benefitting our community.
There being no objections, the rules were suspended.
Ms. Fu: Sure. Good morning. Kanani Fu, Housing
Director. If you do not mind, I would like to call Kerrilyn Barros. She is our
Community Development Block Grant (CDBG) Coordinator, so she is better versed
on the projects than I am and I am putting her on the spot.
KERRILYN BARROS, CDBG Coordinator: Aloha and good morning. Kerri
Barros, CDBG Coordinator. We have before you four (4) projects recommending for
funding that will be included in the annual Action Plan for program year 2018,
submitted to the United States Department of Housing and Urban Development
(HUD). CDBG benefits the low and moderate income community or area here on
Kauai. There are four (4) categories that the CDBG funds can be used to fund: public
services, economic development, housing, and public facilities.
Councilmember Yukimura: Kerri, I know you folks carefully vet these
projects. So the projects this year are in public service and public facilities?
Ms. Barros: Correct.
Councilmember Yukimura: So the Hawaiian Community Assets (HCA)
Homeowner Education and Counseling Projects—it says here that they conduct
workshops for counseling for low- to moderate-income individuals in order to increase
homeownership opportunities and prevent foreclosures. Are these just Native
Hawaiian people or are the workshops open to all low- and moderate-income?
Ms. Barros: No, the workshops are open to all individuals
and families on Kauai. Of course, Hawaiian Community Assets can serve individuals
who are over eighty percent (80%) the low- and moderate-income persons, but CDBG
will pay for those that they serve that are under.
Councilmember Yukimura: So they probably offer their services for those
above the low- and moderate-income level for a fee or sliding fee?
Ms. Barros: I am not sure if they charge a fee.
COUNCIL MEETING 32 APRIL 11, 2018
Councilmember Yukimura: Okay. At any rate, anyone who is interested
in becoming a homeowner can take these courses and they teach budgeting and how
to save for your down-payment and things like that, right?
Ms. Barros: It is also for current homeowners to prevent
foreclosure. So with the counseling portion, they will meet with certified HUD
educators who would help them through if they are at risk for foreclosure.
Councilmember Yukimura: We found in our housing program that we
spend a lot of money to make these homes available and then sometimes our clients,
so to speak, lose their homes because they do not know how to budget. It is a
requirement for the County to get on the County list to do a homeowner course.
Ms. Barros: Correct, so the Housing Agency has two (2)
programs: Homebuyer Loan Program and a Home Purchase Program. First-time
homebuyers individuals and families could come if they are on the waitlist and you
will have to take the classes through HCA or another HUD certified organization to
receive a certificate saying that they have completed the classes and to be on the
County waitlist in order to be eligible for the two (2) County programs.
Councilmember Yukimura: So you want to make sure that someone who
becomes a homeowner stays a homeowner?
Ms. Barros: Exactly.
Councilmember Yukimura: That is such a good program and really
essential to our goal of keeping people in their homes.
Ms. Barros: Yes.
Councilmember Yukimura: Great, thank you. Explain what the Local
Family Small Homes Program is.
Ms. Barros: So Homestead Community Development
Corporation will serve individuals or families here on the island, and again, low- and
moderate-income persons. They could serve those that are over the eighty
percent (80%); however, CDBG will pay for the portion of individuals or families who
are under. This is an educational program where anyone who is interested in
learning the process of going through building a home or a smaller home, six hundred
forty (640) square feet, the different agencies that are involved, the steps, and
everything to do with building a home—this is an educational program that will teach
that.
Councilmember Yukimura: Excellent. Can you just explain the other
two (2) public facilities project?
Ms. Barros: So Kaua`i Economic Opportunity has the only
emergency shelter on the island and it is in need of repairs/rehabilitation, so CDBG
funds will look at correcting any Americans with Disabilities Act (ADA) problems or
COUNCIL MEETING 33 APRIL 11, 2018
accessibility and make improvements to the shower facility and bathroom facilities.
Councilmember Yukimura: Okay.
Ms. Barros: Kalena Park rehabilitation, also a public
facility project, will rehabilitate the basketball court and improve the bathrooms and
accessibility to the court. This project falls under the national objective for CDBG as
a low- and moderate-income area benefit, so according to HUD's data based on low-
and moderate-income areas, this part falls under that area.
Councilmember Yukimura: Because we have LIhu`e Court and the Rice
Camp...
Ms. Barros: Correct.
Councilmember Yukimura: That is a wonderful project. I think Kalena
Park is probably one of the most used parks on the island.
Ms. Barros: Yes.
Councilmember Yukimura: Your last project is this transitional housing.
Ms. Barros: That one is a backup project. We do not have
enough funds to fund that, but it did meet the scoring for funding. So should any
project not go through or we get other funds from program income, this project could
be funded in the future...alternate project. That is what I was trying to say.
Councilmember Yukimura: I see. It is good to have that backup because
we do know that funds sometimes become available and certainly a transitional
housing for women in need is a really important facility.
Ms. Barros: Yes.
Councilmember Yukimura: Thank you. That gives us a really good idea
of what CDBG is doing in our community. Thank you for your fine work on it.
Ms. Barros: Thank you for your continued support with
funding CDBG.
Council Vice Chair Kagawa: Councilmember Brun.
Councilmember Brun: You missed"E." What is "E" about? I am just
kidding.
Council Vice Chair Kagawa: Councilmember Kawakami.
Councilmember Kawakami: It does not pertain and to any particular
project, but it is more germane to the CDBG program in and of itself. I found it
interesting that you have an entitlement program that is based on formula that goes
COUNCIL MEETING 34 APRIL 11, 2018
to city and counties, but then I realized that Hawai`i actually has their own CDBG
program carved out specifically for us. I think in 2004, the Appropriations Act asked
the Governor of the State of Hawaii are you going to participate in the State CDBG
program or not? At the time, the Governor said, "No, we are not going to participate
in the State CDBG." So they actually carved out specifically for Hawai`i County,
Kaua`i County, and Maui County. Why is that? Does it work to our benefit to have
our own program carved out? If you do not know off the top of your head, that is
maybe a discussion on a broader scale than this, but it is interesting.
Ms. Barros: For the entire pot that comes to Hawaii, one
hundred percent (100%) of the CDBG funds that comes from HUD, seventy percent
(70%) goes to the City and County of Honolulu. The remaining thirty percent (30%)
gets split up between the three (3) islands: Big Island, Maui, and Kaua`i, which is
based on population so obviously Kauai gets the least amount of funds.
Councilmember Kawakami: It is the CDBG from the City and County of
Honolulu that has to lead, right? So they not only get the lion's share, but they are
also calling the shots as far as who gets what. Correct?
Ms. Barros: Actually, no. The City and County of
Honolulu, with their seventy percent (70%), they do their program and then each
island does as well. So we get our funds directly from HUD.
Councilmember Kawakami: So this decision to not participate with the
State CDBG is beneficial to Hawaii or is that kind of ambiguous?
Ms. Barros: Well, if any island does not perform or is not
able to meet the Federal requirements of the program, and they are hanging on to
that much money, it leaves the other counties who are working well in the CDBG
programs less funds. That is how I see it.
Councilmember Kawakami: Thank you.
Council Vice Chair Kagawa: That is a great assessment. Further
discussion? Seeing none, thank you.
Ms. Barros: Thank you.
Council Vice Chair Kagawa: Anybody from the public wishing to speak on
this? Alice.
Ms. Parker: Alice Parker, for the record. I believe
acronym "CDBG" is "Community Development Building Grant?"
Councilmember Yukimura: "Block Grant."
Ms. Parker: Okay. Thank you.
Council Vice Chair Kagawa: Mr. Price.
COUNCIL MEETING 35 APRIL 11, 2018
Mr. Price: Evan Price. I just wanted to encourage a
higher-density; research the successful projects on other islands and on the mainland.
There are some very high-quality, high-density programs that do allow quality of life
and get much more bang for the buck. So please just research and try to emphasize
higher-density projects. We want to serve as many people as possible with limited
funds and that is a way to do that. Just in that general tone, supporting working
poor through rent subsidy is the number one priority that will keep people from
becoming homeless and help people. With a little bit of the rent subsidy, people will
be able to put aside some savings towards the down payment, which will allow
homeownership, so kind of a rent subsidy for working for poor is the number one
concept in helping both homeless with the affordability issue for housing. Thank you.
Council Vice Chair Kagawa: Thank you. Further discussion? Anybody
else from the public? Seeing none, Members? Councilmember Kawakami.
There being no further testimony, the meeting was called back to order, and
proceeded as follows:
Councilmember Kawakami: Thank you for your great work in
administering these CDBG funds. I think the one of thing that we need to be
cognizant of though is that this current Administration at the Federal-level, under
the President's budget, actually proposed to cut all of these good funding mechanisms
and it would have been disastrous for communities across the nation. The proposal
would have eliminated our HOME funding, CDBG funding, Choice Neighborhoods
Initiative, and the National Housing Trust Fund. So as we continue to trot along, we
have to remind our delegation up at the Federal-level that these are all great projects
and this is where CDBG funding is going to and to continue to advocate that this
continues to be placed in the budget. Thank you.
Council Vice Chair Kagawa: Councilmember Yukimura.
Councilmember Yukimura: I concur, these Federal moneys are so
important and it is really how we use the Federal moneys that is most important
because that determines how much of the money actually reaches the people who live
here. I just want to commend the Housing Agency, Kerri in particular, and all those
who work as the team for doing this good work, because through our efforts at the
Housing Agency, we are leveraging moneys and we are putting them together to
support projects that we have done. Kalena is the perfect example, both Lihu`e Court
and Kaniko`o at Rice Camp are projects that the County has been instrumental in
providing, and now making sure that the park is in good shape is just another way of
providing quality of life for our families. The other examples, too, preventing
foreclosures and enabling people to hold on to their homes—those are also important.
(Council Chair Rapozo was noted as present.)
Council Vice Chair Kagawa: Any further discussion? If not, roll call.
COUNCIL MEETING 36 APRIL 11, 2018
The motion for adoption of Resolution No. 2018-18 was then put, and carried
by the following vote:
FOR ADOPTION: Brun, Chock, Kagawa, Kaneshiro,
Kawakami, Yukimura, Rapozo TOTAL— 7,
AGAINST ADOPTION: None TOTAL— 0,
EXCUSED & NOT VOTING: None TOTAL— 0,
RECUSED & NOT VOTING: None TOTAL — 0.
Ms. Fountain-Tanigawa: Seven (7) ayes.
Council Vice Chair Kagawa: Can we go back to the Legal Document? I will
now turn it over to Chair Rapozo.
Ms. Fountain-Tanigawa: We are back to page number 5, C 2018-109.
There being no objections, C 2018-109 was taken out of order.
There being no objections, the rules were suspended.
MICHAEL TRESLER, Deputy County Engineer: Good morning,
Councilmembers. Michael Tresler, Public Works.
Councilmember Yukimura: Good morning, Mike. Can you just explain?
This is a detention basin agreement, so the developer is creating the detention basin
as required by our laws to prevent run-off onto other properties in time of high rain
or high flooding conditions.
Mr. Tresler: Yes.
Councilmember Yukimura: Mainly, they are indemnifying us?
Mr. Tresler: Yes, there is an indemnification provision
that is standard with our agreements for these types of projects.
Councilmember Yukimura: So they are responsible for upkeep and
maintenance, et cetera, right?
Mr. Tresler: Yes, they are.
Councilmember Yukimura: Okay. Thank you.
Council Chair Rapozo: Any other questions for Mr. Tresler? If not,
thank you very much.
Mr. Tresler: Anyone in the audience wishing to testify?
Seeing none, I will call the meeting back to order. Any further discussion? Go ahead.
COUNCIL MEETING 37 APRIL 11, 2018
There being no objections, the meeting was called back to order, and proceeded
as follows:
Councilmember Kaneshiro: I originally was going to have a question for
Mauna Kea. I was thinking that this was the detention basin that we saw previously
and then I realized it is the Rice Camp detention basin and I noticed that the
language that we saw in the other one was a lot stricter and this one is a lot more
toned down. So I am okay with the language in this detention basin agreement.
Council Chair Rapozo: Thank you. Any other discussion?
Councilmember Yukimura.
Councilmember Yukimura: I thought we do not have to pay attorney's
fees, so why would we have this here where it binds us to do that? Was that not the
issue? It seems like maybe it is the recurring...it is the same thing.
Councilmember Kaneshiro: Were you asking me that?
Councilmember Yukimura: No, I think we need the County Attorney up
here. I thought we resolved that.
Council Chair Rapozo: With that, we will suspend the rules.
Councilmember Yukimura has a question regarding the legal document on Rice
Camp. Councilmember Yukimura.
There being no objections, the rules were suspended.
Councilmember Yukimura: Thank you. Mauna Kea, we are looking at
this "attorney fee provision," which seems to be, to my knowledge, although I do not
have the word-by-word comparison in front of me, but it is that same provision that
we...what detention basin was it that we dealt with?
MAUNA KEA TRASK, County Attorney: I think it was the Kiahuna one.
Councilmember Yukimura: Yes, thank you. We decided that we did not
need this provision. Is this is a different circumstance?
Mr. Trask: No. I think this came up...my review was at
the same time as the other one...maybe the timing to reach here was a little different,
but it is the same issue, same provision, and needs your approval in order to
effectuate. The policy call is this body's to make.
Councilmember Yukimura: I think after considerable discussion, we said
that we do not really want to bind ourselves to pay attorney's fees because it is not
necessary to.
Mr. Trask: Yes, and that is your policy call to make. I
definitely understand the reasoning behind it.
COUNCIL MEETING 38 APRIL 11, 2018
Councilmember Yukimura: So if we were to reject this, would we not be
continuing the policy we did with Kiahuna?
Mr. Trask: If you did the same thing in this case as you
do in that case, the result would be the same.
Councilmember Yukimura: But they are not differing circumstances that
would be impacted differently by the same wording?
Mr. Trask: I do recall...this is for Rice Camp, correct?
Councilmember Yukimura: Correct.
Mr. Trask: There is a little bit of difference in it because
we are part of the development of that project versus Kiahuna, which is a private
subdivision, private property, and private parties.
Councilmember Yukimura: Right.
Mr. Trask: So I do not have my notes in front of me for
this specifically, but it is nuance. It is a little different than the other one, which is a
multimillion dollar subdivision. This is an affordable housing project.
Councilmember Yukimura: Okay. So do you want to explain the different
then?
Mr. Trask: I would love to follow-up. Again, I do not have
my notes with me.
Councilmember Yukimura: Can we just defer this?
Council Chair Rapozo: Anymore questions?
Councilmember Yukimura: The primary responsibility is still on the
developer.
Mr. Trask: Pardon me, I just want to speak accurately on
the record.
Council Chair Rapozo: Is this standard language in these types of
agreements? It works both ways because it says "the prevailing party" or that the
non-prevailing party will pay. So if we are doing what we should do, then there
should be no concern.
Mr. Trask: Yes, the only thing you see, and you see this
sometimes in private agreements, is that when you say "prevailing party," you can
get a nominal amount. The court or the arbiter, if it is a mediation or arbitration,
can say, "Look, all things considered, yes, I am just going to award them one dollar
($1)" or adversary in this case gets awarded one dollar ($1), could be opened up for
COUNCIL MEETING 39 APRIL 11, 2018
tens of thousands of dollars in attorney's fees, which is the only kind of thing you can
appreciate, because some people can win and then lose still yet. They are kind of
standard though. It is something you do see frequently, and to be totally upfront, like
I said last time, we have dealt with it in other cases and then we have realized that
this is not appropriate to approve these things unless we come to you to get approval.
So we are moving towards that.
Council Chair Rapozo: I guess my question to you as our attorney is
do you recommend this clause stay or go, in the best interest of the County? I look at
it as protection for us, providing that we do not mess up.
Mr. Trask: That is true.
Council Chair Rapozo: Because then they can sue us all they want,
but at the end of the day, we win and they pay; we pay zero in attorney's fees.
Mr. Trask: Correct.
Council Chair Rapozo: They repay your salary...whatever the cost
was to defend ourselves, we will be covered by them.
Mr. Trask: Yes.
Council Chair Rapozo: What that does is that kind of prevents or
deters people from filing frivolous lawsuits. If I know at the end of the day, if I just
want to go and get money from the County, and I know that if I lose that I have to
pay their attorney's fees as well, their attorney may want to take a better look at the
case. I see this both ways. I can go either way on this, but to me, it is more of a
protection than a curse.
Mr. Trask: That is the reason why I am kind of hesitant
to answer what is the best way, because there are good arguments on both sides. As
a general matter though, we always advise against liability, we always advise against
venue, and we always advise against certain things just because as improbable as the
chances, we prefer the impossible. But that is not always workable. You have to
work with people in this world to get ahead. I just want to stress that it is your call.
Council Chair Rapozo: Anymore questions of Mauna Kea? If not, we
can have discussion. 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: Yes, if we have gone through this discussion,
and I would like to see the minutes for our discussion, we spent considerable time
and then I think we decided not to go there because it binds us. I think we can always
still apply...this is an arbitration case, but we can always apply for attorney's fees if
we feel we need it. But to automatically accept it does not seem to be the best way to
go.
COUNCIL MEETING 40 APRIL 11, 2018
Council Chair Rapozo: Councilmember Kagawa.
Councilmember Kagawa: For me, the other case, the similarities is that
they are asking for the attorney's fees, but the big difference is that Rice Camp
housing is our project and if we do not do a good job of maintaining that retention
basin, then we are hurting our own investment. The Kiahuna one is a private
matter...it is a private development...supposed to do it...if they do not take care of it,
of course we should not pay for attorney's fees that cause subsequent problems, but
for me, I would rather have the language in, as requested by the Administration, to
take care of our problem and our residents and our project. I do not see a problem
with this being different from the Kiahuna one because the Kiahuna one and Rice
Camp are apples and oranges. For me, I agree with Councilmember Yukimura. We
should consider when we make decisions having consistency, but in this case, to me,
there is a big difference. It is not the same thing. Let us make sure that we take care
of the detention basin and we do not have to worry about any lawsuits or liability.
Thank you, Chair.
Council Chair Rapozo: Councilmember Yukimura.
Councilmember Yukimura: In this agreement, we are not agreeing to take
care of the detention basin. The developer is the one that is agreeing to take care of
this detention basin. So it is not our responsibility and it is, in fact, the same situation
with Kiahuna where a third party or a developer is building the detention basin and
agreeing to the maintenance of it. So in that case, it is similar, both are similar and
we are asking them to indemnify us because we are the landowner, but we are saying
if they do not do their commitments properly and the detention basin overflows and
causes damage to another property or whatever, that they are indemnifying us. So
they take on any defense of us and they pay for it. I think it is the same as Kiahuna
and maybe that is why it is important to have Mauna Kea look at this to see if there
are any real differences or not. So far as I can determine, it is the same.
Council Chair Rapozo: Any other discussion? What is the pleasure of
the body? There is a motion to approve. Again, like I said, if something goes bad, if
there is damage, yes, we are not liabile; this releases the County from liability. But
if we need to go after the developer for whatever reason, that they failed, then at least
this language grants us the ability to recoup or legal fees. I already explained the
deterrence of a frivolous lawsuit, if the developer or anyone knows that they might
end up paying attorney's fees both ways. Go ahead.
Councilmember Yukimura: I think we can ultimately vote however we
wish, but I do not think it would hurt to get the County Attorney's analysis of this. I
would prefer to defer, then we can make a decision when we have all of the
information.
Council Chair Rapozo: Councilmember Kagawa.
Councilmember Kagawa: I can see what you are asking for, but he
pretty much answered your question and he answered it the last time as well. He
COUNCIL MEETING 41 APRIL 11, 2018
said it is a policy call and that it is your decision. So if you are not comfortable now
then you vote "no." He is going to give you the same answer later...he gave you the
same answer for the Kiahuna one and he is going to give you the same answer again,
I assume, because that was the answer he gave you at Kiahuna. He said that it is a
policy call, your decision, and we can support it either way. On this one, I feel more
comfortable supporting it because the Rice Camp project is our project. We will be
the one tasked with helping to resolve the problem, but to deny it now, this is not the
same as denying it for Kiahuna. Private owners own that; that is their project. This
is our affordable housing project. I think that is the difference that I am talking
about. It is not the same for me.
Council Chair Rapozo: Okay. Let us take a vote on the motion to
approve.
Councilmember Yukimura moved to defer C 2018-109, but with a lack of
a second, the motion to defer failed.
Council Chair Rapozo: Roll call on the motion to approve.
The motion to approve C 2018-109 was then put, and carried by the following
vote:
FOR APPROVAL: Brun, Chock, Kagawa, Kaneshiro,
Kawakami, Rapozo TOTAL — 6,
AGAINST APPROVAL: Yukimura TOTAL— 1,
EXCUSED & NOT VOTING: None TOTAL— 0,
RECUSED & NOT VOTING: None TOTAL— 0.
Ms. Fountain-Tanigawa: Six (6) ayes and one (1) no.
Council Chair Rapozo: Motion passes. Next item, please.
C 2018-108 Communication (03/29/2018) from the County Attorney,
requesting authorization to expend funds of up to $25,000.00 for Special Counsel
services to represent the County of Kaua`i in pursuing opioid litigation against the
manufacturers and distributors of opioid pain medications, and related matters:
Councilmember Kagawa moved to approve C 2018-108, seconded by Councilmember
Kaneshiro.
Council Chair Rapozo: Mauna Kea, how long is your presentation?
Let us take a caption break now and come back with the presentation.
There being no objections, the meeting recessed at 10:15 a.m.
The meeting was called back to order at 10:28 a.m., and proceeded as follows:
Council Chair Rapozo: Meeting called back to order. Mauna Kea, the
rules are suspended. Are you going to do a brief statement or go straight into the
presentation?
COUNCIL MEETING 42 APRIL 11, 2018
There being no objections, the rules were suspended.
Mr. Trask: I can do it real briefly.
Council Chair Rapozo: The floor is yours.
Mr. Trask: Thank you. Aloha. For the record, Mauna
Kea Trask, County Attorney. Real briefly, the Office of the County Attorney is
requesting authority to pursue litigation against the manufacturers, marketers, and
distributors of prescription opioid drugs. This is not about doctors or hospitals. In
looking at this issue, our research shows, in fact, that the medical community was
responding to a brilliant marketing campaign, in some cases, marketing disguised as
education, that led them to believe that the risks of addiction had been overblown. It
led them to believe that they had been allowing patients to suffer needlessly and that
they can be more compassionate if they prescribe opioids more liberally, and that
campaign was filled with misinformation. The companies we are talking about are
some of the largest transnational companies in the world with revenues of tens to
hundreds of billions of dollars. The amount to be claimed is unstated at this point
and will be proven at trial and will include, but not be limited to, fines, fees, punitive
damages, compensatory damages to cover the costs associated with amongst other
things, public housing, police, fire, healthcare costs, drug rehabilitation services,
criminal justice system costs, parks and recreation, and the loss of life and quality of
life of Kaua`i's citizens. Finally—then I will get into the presentation itself—the
agenda item is for twenty-five thousand dollars ($25,000) to pursue this litigation;
however, I did receive some questions from the body and I researched it further. I
was under the misimpression that we had to pay for costs in this litigation case, but
in looking at Hawaii Rules of Professional Conduct 1.8E, given the facts and
circumstances, I actually do not need the money; we can enter into a contingency fee
agreement with any successful applicant for these services and the agreement would
entail, like any contingency fee in a plaintiffs case, they would advance all fees and
costs and recoup if successful either via settlement or a verdict. With that, again, I
do not really need the money, but I do need your authority under 8.06 of the Charter
to get special counsel. This is a special matter in necessitating such services. With
that, I will proceed. I am just going to kind of go through this briskly. If you have
any questions, please ask them at the end.
First off, opioid epidemic nationally—in 2015, over three hundred million
(300,000,000) prescriptions were written for opioids, which is more than enough to
have every American adult their own bottle of pills. We are talking about
Hydrocodone, Oxycodone, Oxymorphone, and Methadone, especially when prescribed
for pain. Parallels of Opioid Sales with Opioid Treatment and Deaths—opioids have
claimed one hundred seventy-five thousand (175,000) lives from 1999 to 2013. It is
recognized as one of the worst drug epidemics ever and the deaths are comparable to
the rate of the death from AIDS in the early '90s. In 2013 alone, sixteen thousand
two hundred thirty-five (16,235) deaths are attributed to opioid overdoses. From 1999
to 2010, nationwide, we saw a four-fold increase in opioid sales, which parallel to
more than four-fold increase and prescription opioid overdose deaths. The cost of the
epidemic across the board, it is not just criminal justice, but actually the larger costs
COUNCIL MEETING 43 APRIL 11, 2018
are related to workplace and healthcare, specifically a loss of productivity, abuse and
treatment healthcare costs across the spectrum. Studies have shown that heroin use
is tied to prescription opioid abuse, so prescription opioid abuse precedes heroin use
by an average of two (2) years. Again, common sense, frequent prescription opioid
users are more likely to switch to heroin, and then abuse of prescription opioids have
been associated with a forty-fold increase risk of dependence or abuse of heroin.
What we have seen in the County of Kaua`i, as you know, last year, there was
about five hundred twenty (520) grams of heroin seized in all of 2017; it is almost a
pound. At this point, this year alone, we have had over five hundred eighty (580)
grams. That is about a pound and a quarter of heroin. We are only in April, so we
are expecting two to three times more by the end of the year, which is an amazing,
unfortunate statistic.
One (1) in twelve (12) doctors are being paid by pharmaceuticals marketing
opioids and the majority of that is family and general practice physicians. Again, this
is not about doctors or hospitals, this is about the companies that manufacture,
distribute, and market these drugs. The over-prescription of opioids is a fundamental
cause of this epidemic. Opioid prescriptions rose one hundred four percent (104%)
from 2000 to 2010. Intensive marketing and limited policing of fraudulent activity
leads to the blockbuster success for certain companies marketing and distributing
their opioid drugs to which they own patents. One of the companies Purdue success
was attributable in part to low patenting standards and enable the company to secure
and extend marketing exclusivity for extended-release oxycodone, providing
motivation for its aggressive marketing. When you look at this issue, think about the
big tobacco lawsuits from the late '90s-early'2000s that this is the next frontier. Now
we are dealing with Fentanyl across the nation and is identified as the next wave of
the opioid epidemic. With that crackdown, there is more instance of Fentanyl, which
is extremely deadly. Our police officers now have to carry Narcan with them, not only
to respond to suspects or victims, but also if a police officer comes in contact with that,
either by touch or inhaling it in the environment, their partner officer has to
distribute Narcan to them so that they do not suffer from doing their job or coming
into contact with it indirectly.
Of course, taxpayers are footing the bill. You see an increased...this looks at
Narcan and Naloxone costs and distribution. An increasing demand of Narcan, which
is a drug use to combat and inhibit the absorption of opioids in the human system has
led to pharmaceutical companies drastically increasing the price of Narcan, which is
crazy.
The statistics show that all ethnic groups are a victim to this crisis. Popularly,
you see on the news, this is billed as primarily a white rural problem, but if you look
across the board, it hits everybody. It is not isolated to one social class, one economic
class, or one ethnic group. This is a graph regarding the effect on Medicare Part D
prescription claims and costs, which are all on the rise.
Now looking at opioids in Hawai`i, what you are seeing is increased overdose
and death rates. Despite occasional variation in trending, it is moving significantly
upward from 1999 to 2015. You see that reliance or usage of Methadone is declined
COUNCIL MEETING 44 APRIL 11, 2018
by more than one-third since 2006; however, the increase and distribution of drugs
that prevent overdose is indicative of the striking growing demand for overdose
prevention, as has been seen across the nation. So Hawaii is not isolated from this.
We are just as susceptible as everyone else.
Increase in distribution of Codeine and related synthetic opioids—similar to
national trends, distribution of these drugs peaked in 2011-2012 in Hawai`i whereas
Codeine values have decreased steadily since 2001.
Now we are looking at Kaua`i County in the effect of this on our island. Codeine
and Oxycodone distribution varied from 2006 to 2016 with Oxycodone rates starting
significantly higher than State average and ending in 2016 at a similar rate. These
are all taken from national and State statistics, so I do not have the up-to-date ones,
but as recent as we were able to get. You see an increase in Buprenorphine
distribution and it is consistent with the State and is indicative of the striking and
growing demand for overdose prevention, which is a cost that the County of Kauai
bears via our public safety departments. Oxymorphone distribution trends on Kaua`i
have been largely similar to statewide peaking in 2011. Again, Medicare Part D
prescription claims in our County—you see a significant majority of claims were in
Lihu`e and `Ele`ele with over seventy percent (70%) of the Countywide total. By
specialty, you are looking again...this is family and general practice right here.
So why is Kaua`i County pursuing this? This is part of a national trend. This
is not the first time in the nation that anyone is doing this; it is becoming more and
more prevalent. However, we would be the first in the State to do this, either amongst
the Counties or the State government itself. We believe that the effects of the opioid
epidemic have been felt strongly at the County-level. I did this presentation at our
department head meeting on Monday, and across the board, all the departments
support it. They all have...not all of them...but most of them have impacts, whether
it is Parks & Recreation cleanup, vandalism, homelessness, and public safety issues,
et cetera. We experienced significant costs that are separate and distinct from the
State and the real goal of this lawsuit filing on the County individually would be to
leave the power of accepting a settlement and distribution of any recovery to the
County as opposed to giving control of the State. If you recall, the tobacco lawsuits
resulted in the State of Hawaii across the country in the creation of state special
funds, which the state controls and the state distributes. We do not see a lot of that
money, and we should because our citizens suffer from tobacco use just as anyone
else. So the point of filing for us is so that we can control the litigation and you can
make those decisions at the appropriate time.
Why should the County of Kaua`i file a lawsuit? If you look, these are previous
significant fines. Purdue was fined six hundred thirty-five million dollars
($635,000,000) in 2007 for claiming the drug was less addictive and not subject to
abuse. Similarly, McKesson was fined one hundred fifty million dollars
($150,000,000). Cardinal Health forty-four million dollars ($44,000,000) for failure
to report suspicious orders. Amerisourcebergen was fined for failure to report
suspicious orders of their drug, sixteen million dollars ($16,000,000). To put this into
perspective, what I stated earlier, Cardinal Health is a distributor of these drugs.
Revenues last year, according to my internet research, is one hundred thirty billion
COUNCIL MEETING 45 APRIL 11, 2018
dollars ($130,000,000,000). Amerisourcebergen recently joined together to
consolidate their market shares and they are seeing revenues in the amount of one
hundred thirty-five point nine billion dollars ($135,900,000,000).
If you look at substantial settlements under the way, Purdue settled with State
of Kentucky, 2013, twenty-four million dollar ($24,000,000) for misleading the public
about the addictiveness of OxyContin; four million dollars ($4,000,000) with Pike
County, Kentucky; Galena settled for seven million five hundred thousand dollars
($7,500,000); Teva, one million six hundred thousand dollars ($1,600,000); and Endo,
two hundred thousand dollars ($200,000).
So the causes of action we would be seeking in brief, these are the type of
companies that are manufacturers, marketers, as well as distributors. All you need
to know is that they are extremely large, high-valued transnational corporations. The
claims we would be pursuing would include, but not limited to, violations of Consumer
Protection Act/Fair Business Practices, Violations of State Controlled Substances
Act, and general public nuisance, negligence, fraud, and unjust enrichment type of
claims. For the manufacturers, it is falsely and fraudulently marketing opioids as
safe and not addictive, failing to perform proper long-term studies regarding the
effects of their drugs, and generally creating a false perception of the safety and
efficacy of opioids in the medical community. As far as the distributors, failing to
report suspicious orders as required by law. These are existing obligations that they
have and we believe they failed to fulfill: conduct and dispensing, supplying or selling
their drugs without adequate safeguards. All of this proximately cause injury to the
County and its citizens. The relief sought in brief including, but not limited to, civil
penalties, treble damages, compensatory damages, punitive damages, and of course
fees and costs. That is all I have today. We are looking forward to working together
with the legislative and executive branch to combat this. I think it is appropriate this
time. We were talking about this at budget. I just appreciate this opportunity and
looking forward to taking action on behalf of our community. Thank you.
Council Chair Rapozo: Thank you very much. I just have one quick
question. On your slide 25 and 26, 25 shows the fines and 26 shows the settlements;
are the fines to the Federal government? Who administered those fines?
Mr. Trask: It is spread out, so if you violate these Federal
and State laws, you are looking at Federal and State fines. I cannot equate
specifically where they go to, but that is what we are looking at, those type of
substantial fines.
Council Chair Rapozo: I see the fines are pretty significant and the
settlement numbers are significantly less. I was just curious, for a state like Hawai`i
or a county of Kauai, what kind of settlement number. I am looking at the entire
State of Kentucky was twenty-four million dollars ($24,000,000) and Pike County,
Kentucky was four million dollars ($4,000,000). These are against individual
companies. The Endo settlement, New York State, was for two hundred thousand
dollars ($200,000). Do we even have a ballpark estimate of what our case could be
worth for the County of Kaua`i?
COUNCIL MEETING 46 APRIL 11, 2018
Mr. Trask: At this point, no. One of the reasons why this
is a matter of necessitating special counsel is because it takes an extreme amount of
expertise and organization to really find out to go through our books, audit
everything, and identify what our compensatory damages would be, you also look at
punitive damages. So that is not related to any specific costs, but actually punished
the company for malpractice. When you have something like treble damages, if you
conduct yourself a certain way and it is inappropriate, whatever those damages are,
treble damages allow you to triple. Again, the point being is that whatever the
settlement offer may or may not be, it would be brought to you for acceptance versus
State or consolidation with other entities. Again, this is all to be proven at trial and
a lot of this is dealt in discovery because you have to understand what these
companies are doing before you can figure out what kind of damages you are available
to and we need that subpoena power in order to get it first.
Council Chair Rapozo: Okay. Is this going to be an individual
lawsuit from the County of Kauai or are we joining a class action?
Mr. Trask: At this point, it is individual. I discussed this
with other counties and my understanding is that Maui with us...I am waiting for
confirmation on that. Big Island and O`ahu is still contemplating it. There may be
an opportunity to kind of work in a cooperative purchasing agreement to see if that
works for all of us, but nonetheless, they have their own issues to deal with and
whether or not they find value in this is their decision to make. I think we have value
in this, so we should decide. Sometimes, maybe they need to see what successes we
enjoy and they will do their own thing. I do not think we should wait for anyone on
this.
Council Chair Rapozo: Thank you. Any questions for Mauna Kea?
Councilmember Kagawa.
Councilmember Kagawa: Did you comment on the City and County?
Mr. Trask: When I got this agenda last week, I confirmed
it was on and contacted my fellow county attorneys and the City and County was still
looking at it. They are doing their own analysis.
Councilmember Kagawa: To me, if anybody needs to pull the trigger, it
is the City and County because the opioid epidemic is prevalent with the homeless
community, right?
Mr. Trask: Yes. I am not saying they are not. I want to
be clear that they are just going through their own analysis. I have done mine and I
am comfortable so that is why I brought it to you.
Councilmember Kagawa: You see some of the homeless in Honolulu...it
is not rocket science. I am glad that you are taking a step. This is one item where I
am glad that you are the first. We talk about other things and we say, "What is so
good about being first," but in this case, we know that we have issues, and you being
the first one to go—I say "congratulations." How can we help, is my question?
COUNCIL MEETING 47 APRIL 11, 2018
Mr. Trask: For at least a couple of years now, I have
heard that.
Councilmember Kagawa: Thank you.
Council Chair Rapozo: Councilmember Kawakami.
Councilmember Kawakami: What was pretty interesting is that seventy
percent (70%) of the claims of Medicare Part D prescription claims are in Lihu`e,
which is the population, but do we know why `Ele`ele?
Mr. Trask: I do not. Those are raw numbers. I do not
want to speculate either. I thought it was interesting, too. I did not expect that.
Councilmember Kawakami: I would not know. Maybe public safety would
know better. I support this endeavor and I will tell you why—with the Hawai`i
tobacco settlement, they found out that a majority of the funds were not being used
where the Center for Disease Control (CDC) was saying to use the funds and that
was for tobacco prevention and anti-tobacco marketing. A lot of it was just going back
to the General Fund and a lot of it was Oahu-centric. So a lot of that tobacco
settlement fund was not even coming to Kauai, but it was used to fund a University
of Hawai`i building on Oahu that really, you ask yourself, "How does it benefit
Kaua`i?" I think the evidence that you put together is compelling to pursue. I think
we should be pioneers. Is the State of Hawaii pursuing a settlement right now with
the opioid companies?
Mr. Trask: I do not know. I know that in the summer or
fall of last year, they sent a request...there was a press release regarding requests for
information from these companies. I have not heard anything since and I do not
imagine that they received anything, but I do not want to speculate. On that, too, I
guess the compensatory thing...and you are right...the utilization of these funds...I
have seen this Council wrestle with and ultimately make a very difficult call
regarding adolescent drug treatment health center. Today there is a money bill in
front of you to increase that. Those are the type of costs we are looking to...that would
be compensatory costs. I think the local level is the body to look for regarding this
type of money and this expenditure.
Councilmember Kawakami: Thank you.
Council Chair Rapozo: Any other questions? Councilmember
Yukimura.
Councilmember Yukimura: So the plan is for us to retain special counsel?
Mr. Trask: Correct.
Councilmember Yukimura: Do you have a special counsel in mind or are
you taking it off our qualified list or did we even have that category?
COUNCIL MEETING 48 APRIL 11, 2018
Mr. Trask: We did not, so I am going to write a special
procurement, if I get authority. It is going to be (inaudible) pursuant to 103D. It is
going to discuss contingency fee and we are going to open it up. The type of firm that
can do this...this is not a solo practitioner case, this is a big firm. They need to be
able to handle this type of claim. There are only a few in the world that can do it, so
this would be advertised, its own separate thing, and that is how we would do it.
Councilmember Yukimura: Is there any joining of hands among different
jurisdictions whether city, county, or states that are doing similar lawsuits?
Mr. Trask: Yes, I did some research. What I found is
that...I am not sure specifically how up-to-date this necessarily is, but there is
approximately eighty-two (82) cities and counties in sixteen (16) different states, from
the eastern seaboard to New Mexico that have filed these things. I do not know the
status of their joining together, but there is a lot of individual cases, which looks like
to me, and to be clear, I am not a complex litigator...I do not do class action
lawsuits...but unlike the tobacco settlement case, which we are all consolidators of
big settlement—counties want to put their own bills in front and have their own
interests and resources covered. With that type of array of cases at the municipal
level, that seems to be what it is.
Councilmember Yukimura: So the proposal is to retain special counsel for
the purpose of suing these opioid manufacturers and distributors?
Mr. Trask: And marketers, correct.
Councilmember Yukimura: Okay. We are not going to do it in conjunction
with anyone else, we are doing it as a separate lawsuit on our own?
Mr. Trask: Correct.
Councilmember Yukimura: We are going to call them...what kind of
research do we have to do to show the connections and even whom all to sue?
Mr. Trask: It is very complex. I do not want to get too
much into strategy on the open floor. I just wanted to present the issue to you. It
has to do with notice pleading and all that kind of stuff.
Councilmember Yukimura: Well, then I will state the question in another
way—you are asking for twenty-five thousand dollars ($25,000); how far will that
take us?
Mr. Trask: That is what I wanted to clarify, thank you. I
do not need the twenty-five thousand dollars ($25,000). We can go because we would
be the plaintiff, because we would be entering contingency fee agreement. Under
Rule No. 1.8 under Rules of Professional Conduct, normally, an attorney shall not
provide financial assistance to a client in connection with pending or contemplative
litigation, except that a lawyer may advance court costs and expenses of litigation,
COUNCIL MEETING 49 APRIL 11, 2018
the repayment of which may be contingent on the outcome of the matter. So that is
what we would be seeking: a contingency fee. I do not need the twenty-five thousand
dollars ($25,000), in fact, but I do need your authority to pursue the procurement to
get the attorneys.
Councilmember Yukimura: So this Bill is doing both? It is giving you
money and authority?
Mr. Trask: That is how it usually is. Under 8.06, I have
to request authority and state the amount.
Councilmember Yukimura: Okay, it is not a Bill, it is just a request?
Mr. Trask: Again, I thought we had to do upfront costs,
but we do not.
Councilmember Yukimura: So do we modify your request or in our motion
to approve then, we are not going to approve twenty-five thousand dollars ($25,000)?
Mr. Trask: You can always give me less or you can give
me...in this case, none at all. Just the authority and the approval to seek special
counsel for contingency fee.
Councilmember Yukimura: Special counsel on the basis of a contingency
fee arrangement?
Mr. Trask: Correct.
Councilmember Yukimura: You think there is people out there who can
do this work?
Mr. Trask: Yes.
Councilmember Yukimura: So you would hire probably from Honolulu?
Mr. Trask: I am putting this out nationally.
Councilmember Yukimura: I see. Have you spoken to the attorney
general of the State of Hawai`i in terms of where they are or what the possibilities for
combining forces or anything like that?
Mr. Trask: No. I do not see much benefit. I want to cover
the County of Kaua`i's cost. My client is the County of Kauai.
Councilmember Yukimura: I am thinking that there might be some
benefits, but if you say there are not...are there liabilities? Will there be any
unexpected costs or any kind of pushback that is going to come in doing this?
COUNCIL MEETING 50 APRIL 11, 2018
Mr. Trask: You may not get any Big Pharma donations,
but aside from that, no. Not that I can see. I do not mean to be flipping, but I do not
know what it could be, I would be speculating. This body will not be the favorite
amongst that group, I suppose.
Councilmember Yukimura: Will not be the favorite among what?
Mr. Trask: Amongst that group of transnational
corporations, not to say that you get those, I just want to clarify. I do not think any
of you do anyway.
Councilmember Yukimura: We are too small a fish. So that claims as to
manufacturers failing to perform proper long-term studies regarding the effects of
their drugs—is this not a Food and Drug Administration (FDA) requirement?
Mr. Trask: Yes.
Councilmember Yukimura: It is?
Mr. Trask: I think so.
Councilmember Yukimura: So should we sue the FDA? Did they fail in
their job?
Mr. Trask: I do not know if we can, but the point is if you
look at the slide regarding...this is slide 31...irrespective of what the FDA did or did
not do, these companies' conduct as far as what they were required to do at the
Federal-level proximately caused injury to us, the County and its citizens. If you are
not following the rules and you benefit from it and you hurt the County of Kaua`i, we
are going to get the damage.
Councilmember Yukimura: That is all you have to show?
Mr. Trask: Proximate causation, yes.
Councilmember Yukimura: Yes.
Mr. Trask: That is the negligence analysis, right? It may
be more specific in various other statutes, but generally negligence.
Councilmember Yukimura: I may have missed your opening statements.
In terms of treble damages, there is a Federal law that we will be suing under?
Mr. Trask: Federal and State acts can provide for treble
damages in certain circumstances, but to more specifically identify that, we would
have to go through more discovery and I would like to speak with you it the back. I
do not have any specifics as to how at this point. We have not even procured it, the
case has not started.
COUNCIL MEETING 51 APRIL 11, 2018
Councilmember Yukimura: Okay. Thank you.
Mr. Trask: Thank you.
Council Chair Rapozo: Any other questions for Mauna Kea? Mauna
Kea, I do not know if you can answer this, but why has the Federal government or
the regulating agencies not gone after these local doctors that are overprescribing? I
suspect that the claims...I am not sure if these Medicare Part D claims are coming
from the people or if it is coming from the pharmacies. I would assume...it is kind of
weird that you have Lihu`e and Kapa'a and you broke it down by all the different
communities, so I am wondering if these are claims filed by doctors or actual
pharmacies that when the patient comes in to get their medication, the pharmacy
sends their claim for payment.
Mr. Trask: Yes, I am not really sure how the medical
industry deals with that, but I do know that KPD and the Drug Enforcement
Administration (DEA) have gone after local doctors in the past. When I was at the
Office of the Prosecuting Attorney, I believe the tail-end of the Spear's Case was there,
he used to be out in Kalaheo.
Council Chair Rapozo: Basically, Spear's was a crook. That was the
only one. Since then, I have not heard of any other doctors. Those things are given
out pretty easily now.
Mr. Trask: Again, when I opened, my research shows
that these other cases are uncovering and when you get this movement, like you saw
with tobacco and you are seeing with the opioid litigation, is that the medical
community themselves are responding to a marketing campaign. They were
presented with studies that told them, "You have patients suffering. You can give
them this stuff and it is not as bad as you think and/or it can be safe." It turned out
not to be the case and it led to a bunch of heroin abuse, prescription drug abuse, and
overdose/deaths. That is what we need to look at and that is why we are looking at
the industry and how they did what they did.
Council Chair Rapozo: When I look at this, slide 6, one (1) in
twelve (12) doctors are being paid by pharmaceutical companies. Top one
percent (1%) of the physicians receive eighty-three percent (83%) of the payment.
Yes, I would agree that the Big Pharma companies are ultimately liable, but it takes
the doctors here to be passing them out or wherever. It takes doctors that are giving
these things away...when I had my surgery, I got OxyContin. I asked, "Do you have
anything else?" They said, "Do not worry, Mel, it is not dangerous. It is not
addicting." I think that is happening throughout, because if, in fact, our doctors or
pharmacies or nurse practitioners or whoever the heck is writing the scripts are
getting paid, then it starts at the top. They are creating this medical and marketing
it. They are telling the doctors it is not addictive. Is the abuse on Kaua`i to that
level...I am not putting this on KPD...they do not have the ability to track how many
scripts are being written. I went to go buy Sudafed 12-Hour at Longs and I had to
show my identification card (ID) and sign a paper. I was shocked. That is over the
counter, but these other pills are being handed out like candy. I am concerned,
COUNCIL MEETING 52 APRIL 11, 2018
because what is happening, and I think the police will attest to this, is that grandmas
and grandpas are getting these prescriptions and these homes are getting broken into
not for the televisions and VCRs anymore; they are going after the medication, the
opioids, and these other drugs. That is the scary part. These home invasions is not
like the old days where we wanted to steal a television or jewelry. Now, they are just
going for the drugs. That equates to money and different drugs. They sell these
things.
Mr. Trask: I cannot speak intelligently about how it all
interconnects, but I do want to make it clear, because I do not want to misguide the
public or create unnecessary fears—this litigation would not be against doctors or
hospitals. We will learn...I can answer your questions as we proceed, if I am given
authority to do this, but this is focusing on the manufacturers, marketers, and
distributors of these drugs.
Council Chair Rapozo: I do not want to be taken out of context either.
I believe that there is a need for this medication, but I think also that it should come
with a very strict warning and it should be given out in very limited doses and be
really monitored so that it does not get overprescribed where you have extras in your
medicine cabinet because the pain is gone and you no longer need the medicine and
it is sitting in there, waiting for someone to break in. Councilmember Kagawa.
Councilmember Kagawa: For me, how do we work with KPD or this
body to make sure what Council Chair is talking about does not happen? I have
heard stories that I guess the homeless community, the people that are suffering on
welfare, they are being sold these things and using all of their welfare checks...I do
not know if it is one thousand two hundred dollars ($1,200) a month...using their food
stamps even and buying...because once you get hooked on these things...the problem
is like what Council Chair said, where people are on a prescription, but they are
choosing to sell it to make a profit. The guys that they are praying on...we talk about,
"How are you helping the homeless? Build more housing"—you are never going to
cure the problem if they are spending their welfare check and food stamps on these
things. That is why I say, "Great idea, we have to do something," but on the other
hand, I think we have to get better accountability on the prescriptions; is it too much
for the person, so much that they are not even using it, but they are selling it.
Mr. Trask: I have been a lawyer since 2005. I started
with criminal law and I have been reading presentence investigation reports since
2003 and 2004 and it is tragic what you see. It is not just bad people who do this. I
have seen somebody get a back injury and they prescribe these drugs. In a couple of
years, they are in court on a probation violation for heavy-duty drug use. You see a
loss in productivity...somebody will get an injury and they get a surgery and get some
of these drugs and get addicted. All of a sudden, they are always choosing surgery
and always getting injured. They elect the most intrusive surgery so that they can
get the scripts. You get people who are stuck in this thing and they get a drug
conviction and can no longer qualify for HUD vouchers. So now, the County has to
figure out how to house these people when they are prevented from getting benefits
that should be accruing to them. They have to either divorce or the mom or dad
cannot take care of them because of all of this stuff. It is rampant. We are finding
COUNCIL MEETING 53 APRIL 11, 2018
needles. One and a quarter pounds of heroin on Kaua`i by April? No one has ever
seen that before. It is all over. It is not the cure-all; that is why I said that we are
confronting it and dealing with it head-on. I think that is what we need to do now,
time to act.
Councilmember Kagawa: Yes, thanks.
Council Chair Rapozo: Any other questions? Councilmember
Yukimura.
Councilmember Yukimura: I think it is very good that we are doing this.
I am just a little concerned that we are not looking for partners and partnerships just
because I think...we know throughout the County that that gives more strength and
can actually optimize, expand our efforts when we do it together.
Mr. Trask: To be clear, I am not saying that we are not.
Two (2) months ago, I was talking with all of my court counsel associates and they
did express an interest. They are looking at it. I just cannot tell you right now that
we have a dedicated group. It may be that in a week or so they will be interested and
we will come together. We can always come together later, but I do not want to wait
anymore.
Councilmember Yukimura: Yes, I am not advising you wait, but you
would not even reach out to the Attorney General?
Mr. Trask: When this came across, Doug Chin was still
there, but he is not there anymore. I do not know the current status of what they are
doing. We are all very busy. I know it is in front of them and I do not want to create
the impression that they are not interested, but they are not pursuing this on their
own. Because I cannot tell you today with certainty that everyone is onboard, I am
open to working with them later. I am thinking about my client now.
Councilmember Yukimura: Thank you.
Council Chair Rapozo: Any other questions? Seeing none, thank you.
Mr. Trask: Thank you.
Council Chair Rapozo: Anyone in the audience wishing to testify?
BRUCE HART: For the record, Bruce Hart. I have to hand it
to County Attorney Mauna Kea Trask—this is a "David and Goliath" thing. These
pharmaceutical companies, as he has pointed out, make money beyond what we can
even understand. They are not just national, but they are global corporations and it
is not just this county that is facing this issue, but counties all over the United States.
One of the things that is so insidious about this type of addiction is that it affects the
homeless, but it affects every day "Joe and Mary America." They go into a doctor's
office for a pain and the pain is what is driving them. When they are offered
something that can alleviate the pain, and it is as simple as taking a pill, it is a
COUNCIL MEETING 54 APRIL 11, 2018
monumental task to overcome the flesh to take that pill and get rid of the pain. I
happened to have had back pain, a major back injury, and I can tell you it will swallow
your life. So the restrictions that need to be put on the distribution of these kind of
drugs must be very strict, because once they have alleviated the pain, they cannot
overcome the temptation of the flesh to take it again and they have to go back to that
pain. There are alternatives. There is physical therapy, that is where I found my
out. This problem has been going on a lot longer than even most of us have been
alive. These drugs were available on a more limited distribution all the way back
when my dad broke his back and he refused to take them because I had an aunt who
had become addicted to them. Again, there is a whole lot to be discussed, but I hand
it to Mauna Kea that he would take this on. I hope he kicks the poop out of them.
Thank you.
Council Chair Rapozo: Thank you. Anyone else? Seeing none, I will
call the meeting back to order. Councilmember Chock.
There being no further testimony, the meeting was called back to order, and
proceeded as follows:
Councilmember Chock: I just want to applaud Mauna Kea and the
Office of the County Attorney for looking at this issue progressively. This ugly means
of legal addiction is really something that has undermined our County, like Mr. Hart
has had and still suffers from back pain and understands the implications of utilizing
this kind of medication. So I am very supportive ultimately as it may help the health
of our community and really ultimately the environment as well. So I look forward
to how you proceed and do agree with some of the comments in terms of collaboration.
I am a little cautious, just in terms of what kind of unforeseen liabilities or costs that
it may incur, but I this it is well-worth us fighting for our community. Thank you,
Mr. Chair.
Council Chair Rapozo: Councilmember Kagawa.
Councilmember Kagawa: This is just another problem for the police to
deal with, besides the street drugs, and you have this, which is rapidly growing. I
fully agree with Bruce that it does affect all types of families with income. For me,
the reason I mentioned the homeless is that a lot of the homeless are the ones that
are living in our parks, the ones that we want to help get into housing, and to me,
unless we fix these problems, when they are spending their entire check that they are
getting from the government on these type of items and there is a process that is
allowing them to get it and allowing people to illegally profit from that, we will never
fix a significant amount of their lives, period. It is real. Some of them, have
permanent damage from these types of things. I like Mauna Kea's approach; let us
address it in a unique way, but it is a multifaceted approach and we need to find a
way to penalize those that are illegally selling those drugs, and yes, we need to try
and reduce the amount that are coming in so that doctors are more wary that we are
watching them and we are having an eye on the problems. So I think a multi-prong
approach, but it definitely needs immediate attention and I think Mauna Kea gives
us the immediate attention right now that we can do. Thank you.
COUNCIL MEETING 55 APRIL 11, 2018
Council Chair Rapozo: Anyone else? Councilmember Kawakami.
Councilmember Kawakami: Thank you, Mr. Chair. I would like to thank
our County Attorney for the presentation. I wholeheartedly agree. I think we need
to go after the pharmaceutical companies, and I will tell you why—the opioid
epidemic started in the '90s when doctors became aware of the burdens of pain. So
these pharmaceutical companies took notice and they capitalized on them and they
aggressively and very misleadingly marketed these type of drugs to doctors. I mean
doctors are doctors and they are there to heal us, but as far as the tools that they are
prescribing, that is where the pharmaceutical companies came in. So they marketed
these drugs as being safe and they touted the efficacy of these type of drugs to treat
pain and doctors were under pressure at the time also from advocacy groups from
pharmaceutical companies and from government. Government agencies pressured
doctors to treat the burdens of pain. To put blame on the doctors, I do not think that
is where it is at. Of course, we always have a few bad apples, but for the most part,
doctors are already taking steps to control the release of these opioid to their patients.
I know because I have been through a hernia surgery and I had a torn bicep. They
will only prescribe what they think is necessary, which is oftentimes only a few days
worth. So there are already these steps. Here is the thing with pain—it is extremely
complex to identify and to treat. For these doctors that are dealing with less
reimbursements from insurance companies...the insurance companies play a role in
this thing, too. The State has regulating authority over insurance companies, so
somehow they have to play a part of the solution, too, because pain is complex, doctors
are limited with the amount of resources that they have, and they are limited with
the amount of time, so they are prescribing, at the time, what they thought was the
best and safest way to treat the complexities of pain. The problem that lies is that
the alternative modes and treatment of pain are oftentimes not even covered by the
insurance companies. So the very people that we need to treat do not have the ways
and means to obtain the treatment that they need. That is why I think if this County
can be successful in pursuing this lawsuit and getting a settlement, we can now be a
part of the solution and we can now help fund programs to give the poorest of the poor
the holistic treatment and alternative modes of treatment that they need. Thank
you, Mr. Chair.
Council Chair Rapozo: Anyone else? Councilmember Kaneshiro.
Councilmember Kaneshiro: I just want to thank Mauna Kea for getting
ahead of this and taking proactive steps. I think when we go to the National
Association of Counties (NACo) conferences in the mainland, opioid addiction and
opioid in communities is probably the number one issue with a lot of counties in the
mainland. I have talked to counties that have a death a day from opioid overdoses
and it is a huge problem. I look at us and I say that I am thankful that we do not
have a problem like that, but in looking to the future, I am almost sure it is going to
head this way. I am glad that we are taking the steps necessary now to maybe try
and get resources to kind of battle that from getting here or getting as bad as how it
is in some of these other counties in the mainland. So it may be a small issue here
now, but I could see it becoming a very big issue because there are counties that have
a very difficult time dealing with the opioid addictions and issues in their counties.
Anything that we can do to kind of be a little proactive is a benefit to us because it
COUNCIL MEETING 56 APRIL 11, 2018
will probably hit us a lot harder as time goes on. I just want to thank Mauna Kea
and his efforts.
Council Chair Rapozo: Anyone else? Councilmember Yukimura.
Councilmember Yukimura: I really appreciate Mauna Kea's initiative in
stepping forward and grabbing this opportunity to raise the issue and to hopefully
secure some funding and returns from these companies that have caused so much
pain and suffering in our community, and then being able to use the moneys,
hopefully wisely, to address some of the issues, and, in fact, if we can prevent our
people from even going off the cliff with the problem. I think it is a big issue at NACo
and national conventions, because it is not just a homeless issue; it touches all income
groups, all races, and all communities. It is so pervasive that people are being
affected in all walks of life and their families and loved ones. So I think all of this is
good. I think if we are able to get some resources, the challenge is going to be to use
the moneys wisely. We received one million dollars ($1,000,000) for drug prevention
enforcement and treatment back in the early 2000s and I do not know what results
we got. We never get real clarity about the use of all kinds of drugs, whether it is
youth or adults and what we are achieving and how our programs are actually moving
the needle. So that is going to be a challenge, too.
Council Chair Rapozo: Councilmember Brun.
Councilmember Brun: Thank you, Chair. I will try to get through
this. Thank you, Mauna Kea, for looking into this. Knowing somebody close to
me...sorry, Chair.
(Councilmember Brun was noted as leaving the meeting.)
Council Chair Rapozo: That is just the proof that it affects everybody.
This stuff is not funny and I think every one of us has someone related to or we know
that is impacted by this horrible epidemic or addiction. I will make it clear that, like
I said earlier, this medication is important and there is a place for it. When talking
about the doctors, I am talking about those that abuse this and use it for money-
making purposes. I am not saying that it happens here. One of the commissioners
that I spoke to on the mainland, a very small town that has a population of one
hundred fifty thousand (150,000) and their town had seven million four hundred
thousand (7,400,000) doses of Oxy in that year and the year was not even done yet
when I had spoken to him and I am not sure if that is the same...probably not the
same person you spoke to, but the deaths were common, overdoses were common.
Seven and a half(7.5) doses in a population that is small is not doctors that are being
responsible...I am not talking about illegal doses; these are prescriptions that were
written legally and legitimately, but it was quite obvious that people were being
prescribed this medication more than they needed it and those are the doctors I am
talking about that need to be held accountable. It is not our local police's
responsibility; it is the Federal government, the FDA or whoever regulates these
drugs that have to be paying attention, "How come so many prescriptions are being
written from this one place?" That is what happened to Spear in Hanapepe. I
witnessed it with my own eyes. I was there picking up documents for my business,
COUNCIL MEETING 57 APRIL 11, 2018
picking up medical records, and I saw it happen right in front of my eye. I called KPD
and they said, "Mel, we are working on it. In fact, something is going to be happening
real soon," and it did and they got him. It was incredible what I saw. Those are the
ones that I am talking about. Every medication has a side-effect and every
medication is not completely safe, but when we start prescribing medication based on
the false information from the manufacturers and the deception and the promises
that it is not going to cause addiction, the numbers are staggering and the profits are
staggering. I applaud Mauna Kea for stepping up. Honestly, I would not want him
to communicate work with the State on this one. I think we can. The Attorney
General and others have their own motivations, but for us, I think we can deal with
this issue as it impacts our people on Kaua`i and not the State's perception of the
impact that it has on the State. Really, when you look at O`ahu and Kaua`i, we are
apples and oranges. The impacts, as you just saw from one of our
Councilmembers...maybe it is a little more intense here or maybe a little more
impacting for us. I applaud Mauna Kea for doing this and I look forward to seeing
this thing through. This is a start. What I am hearing is that this is sufficient for
what Mauna Kea believes for the case to take this thing through. It will more than
likely be a contingency case, so if we win, we prevail and get money. If we lose, we
do not pay. I think it is the start of a long battle because we are going to
be...somebody said "David and Goliath" earlier and that is the true description of
what we are going to be facing. With that, the motion is to approve. Roll call.
(Councilmember Brun was noted as present.)
The motion to approve C 2018-108 was then put, and carried by the following
vote:
FOR APPROVAL: Brun, Chock, Kagawa, Kaneshiro,
Kawakami, Yukimura, Rapozo TOTAL— 7,
AGAINST APPROVAL: None TOTAL— 0,
EXCUSED & NOT VOTING: None TOTAL— 0,
RECUSED & NOT VOTING: None TOTAL — 0.
Council Chair Rapozo: Next item.
Resolution No. 2018-19 — RESOLUTION APPOINTING DEREK S.K.
KAWAKAMI AS REPRESENTATIVE AND ROSS KAGAWA AS ALTERNATE TO
THE EXECUTIVE COMMITTEE OF THE HAWAII STATE ASSOCIATION OF
COUNTIES: Councilmember Yukimura moved for adoption of Resolution
No. 2018-19, seconded by Councilmember Kagawa.
Council Chair Rapozo: Any discussion or public testimony?
There being no objections, the rules were suspended to take public testimony.
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
Council Chair Rapozo: I would just like to say thank you for the
COUNCIL MEETING 58 APRIL 11, 2018
two (2) of you for representing us at the State-level and at the national level. Keep
up the good work. I appreciate the work. With that roll call.
The motion for adoption of Resolution No. 2018-19 was then put, and carried
by the following vote:
FOR ADOPTION: Brun, Chock, Kagawa, Kaneshiro,
Kawakami, Yukimura, Rapozo TOTAL — 7,
AGAINST ADOPTION: None TOTAL — 0,
EXCUSED & NOT VOTING: None TOTAL — 0,
RECUSED & NOT VOTING: None TOTAL — 0.
Ms. Fountain-Tanigawa: Seven (7) ayes.
Council Chair Rapozo: Next item.
Proposed Draft Bill (No. 2706) —A BILL FOR AN ORDINANCE AMENDING
ARTICLE 11, CHAPTER 5A, KAUAI COUNTY CODE 1987, AS AMENDED,
RELATING TO REAL PROPERTY TAX (Automatic Fire Suppression System
Exemption): Councilmember Kawakami moved for passage of Proposed Draft Bill
(No. 2706) on first reading, that it be ordered to print, that a public hearing thereon
be scheduled for May 16, 2018, and referred to the Budget & Finance Committee,
seconded by Councilmember Yukimura.
Council Chair Rapozo: Thank you. Any discussion or public
testimony?
There being no objections, the rules were suspended to take public testimony.
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
The motion for passage of Proposed Draft Bill (No. 2706) on first reading, that
it be ordered to print, that a public hearing thereon be scheduled for
May 16, 2018, and referred to the Budget & Finance Committee was then put,
and carried by the following vote:
FOR PASSAGE: Brun, Chock, Kagawa, Kaneshiro,
Kawakami, Yukimura, Rapozo TOTAL — 7,
AGAINST PASSAGE: None TOTAL — 0,
EXCUSED & NOT VOTING: None TOTAL — 0,
RECUSED & NOT VOTING: None TOTAL — 0.
Ms. Fountain-Tanigawa: Seven (7) ayes.
Council Chair Rapozo: Next item.
Proposed Draft Bill (No. 2707) —A BILL FOR AN ORDINANCE AMENDING
ORDINANCE NO. B-2017-821, AS AMENDED, RELATING TO THE OPERATING
COUNCIL MEETING 59 APRIL 11, 2018
BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII, FOR THE FISCAL
YEAR JULY 1, 2017 THROUGH JUNE 30, 2018, BY REVISING THE AMOUNTS
ESTIMATED IN THE PUBLIC ACCESS, OPEN SPACE, NATURAL RESOURCES
PRESERVATION FUND (Operating Budget Transfer — Kekaha Coastal Property
Acquisition - $599,000.00): Councilmember Yukimura moved for passage of Proposed
Draft Bill (No. 2707) on first reading, that it be ordered to print, that a public hearing
thereon be scheduled for May 16, 2018, and referred to the Budget & Finance
Committee, seconded by Councilmember Chock.
Council Chair Rapozo: Thank you. Any discussion or public
testimony?
There being no objections, the rules were suspended to take public testimony.
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
The motion for passage of Proposed Draft Bill (No. 2707) on first reading, that
it be ordered to print, that a public hearing thereon be scheduled for
May 16, 2018, and referred to the Budget & Finance Committee was then put,
and carried by the following vote:
FOR PASSAGE: Brun, Chock, Kagawa, Kaneshiro,
Kawakami, Yukimura, Rapozo TOTAL— 7,
AGAINST PASSAGE: None TOTAL— 0,
EXCUSED & NOT VOTING: None TOTAL — 0,
RECUSED & NOT VOTING: None TOTAL— 0.
Ms. Fountain-Tanigawa: Seven (7) ayes.
Council Chair Rapozo: Next item.
Proposed Draft Bill (No. 2708) —A BILL FOR AN ORDINANCE AMENDING
ORDINANCE NO. B-2017-822, AS AMENDED, RELATING TO THE CAPITAL
BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII, FOR THE FISCAL
YEAR JULY 1, 2017 THROUGH JUNE 30, 2018, BY REVISING THE AMOUNTS
ESTIMATED IN THE PUBLIC ACCESS, OPEN SPACE, NATURAL RESOURCES
PRESERVATION FUND — CIP (CIP Budget Transfer — Kekaha Coastal Property
Acquisition - $599,000.00): Councilmember Yukimura moved for passage of Proposed
Draft Bill (No. 2708) on first reading, that it be ordered to print, that a public hearing
thereon be scheduled for May 16, 2018, and referred to the Budget & Finance
Committee, seconded by Councilmember Brun.
Council Chair Rapozo: Thank you. Any discussion or public
testimony?
There being no objections, the rules were suspended to take public testimony.
COUNCIL MEETING 60 APRIL 11, 2018
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
The motion for passage of Proposed Draft Bill (No. 2708) on first reading, that
it be ordered to print, that a public hearing thereon be scheduled for
May 16, 2018, and referred to the Budget & Finance Committee was then put,
and carried by the following vote:
FOR PASSAGE: Brun, Chock, Kagawa, Kaneshiro,
Kawakami, Yukimura, Rapozo TOTAL — 7,
AGAINST PASSAGE: None TOTAL — 0,
EXCUSED & NOT VOTING: None TOTAL— 0,
RECUSED & NOT VOTING: None TOTAL— 0.
Ms. Fountain-Tanigawa: Seven (7) ayes.
Council Chair Rapozo: Next item.
BILL FOR SECOND READING:
Bill No. 2675 — A BILL FOR AN ORDINANCE TO AMEND CHAPTER 8,
KAUAI COUNTY CODE 1987, RELATING TO THE COMPREHENSIVE ZONING
ORDINANCE (Farm Worker Housing Use Permits): Councilmember Chock moved to
approve Bill No. 2675, on second and final reading, and that it be transmitted to the
Mayor for his approval, seconded by Councilmember Yukimura.
Council Chair Rapozo: Any one from the public wishing to testify on
this?
There being no objections, the rules were suspended to take public testimony.
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
Council Chair Rapozo: Discussion? Councilmember Kagawa.
Councilmember Kagawa: I just want to make sure that the Department
of Public Works, Department of Parks & Recreation, and the Planning Department,
all of these agencies, once this gets final approval, to just make sure that as we
administer this Bill and the benefits of having farm worker housing that we make
sure, to the best extent possible, that we ensure these are farms and not farms for
people. They have to be real farms where we are growing food or vegetables or raising
animals, not raising more people to move here from the mainland. Thank you.
Council Chair Rapozo: Any other discussion? Seeing none roll call.
The motion to approve Bill No. 2675, 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:
COUNCIL MEETING 61 APRIL 11, 2018
FOR APPROVAL: Brun, Chock, Kagawa, Kaneshiro,
Kawakami, Yukimura, Rapozo TOTAL— 7,
AGAINST APPROVAL: None TOTAL— 0,
EXCUSED & NOT VOTING: None TOTAL— 0,
RECUSED & NOT VOTING: None TOTAL— 0.
Ms. Fountain-Tanigawa: Seven (7) ayes.
Council Chair Rapozo: Thank you. Can you read us into Executive
Session, please?
EXECUTIVE SESSION:
ES-945 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 requests an Executive Session with the Council, to provide the Council with
an additional briefing update and request for authority to settle the case of Klaus H.
Burmeister, et al. v. County of Kauai, CV 16-00402 LEK-KJM (United States District
Court), and related matters. This briefing and consultation involves consideration of
the powers, duties, privileges, immunities, and/or liabilities of the Council and the
County as they relate to this agenda item.
ES-946 Pursuant to Hawai`i Revised Statutes (HRS) Sections 92-4,
92-5(a)(4), and Kauai 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 the litigation of Mark N. Begley vs. County of Kauai, et al., Civil No.
CV16-00350, 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-947 Pursuant to Hawai`i Revised Statutes (HRS) Sections 92-4,
92-5(a)(4), and Kauai 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 the retention of Special Counsel to represent the County of Kauai in
pursuing opioid litigation against the manufacturers and distributors of opioid pain
medications, 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-948 Pursuant to Hawaii Revised Statutes (HRS) Sections 92-4,
92-5(a)(4) (6) & (8), and Kauai County Charter Section 3.07(E), the Office of the
County Attorney, on behalf of the County Administration, respectfully requests an
Executive Session with the Council to provide the Council with a briefing on
communication C 2018-83 from the Chief of Police requesting Council approval to
accept Hawaii High Intensity Drug Trafficking Area (HIDTA) discretionary funding
from the Office of National Drug Control Policy, in the amount of$147,000.00, to be
used in obtaining technical communication/wireless equipment, and related matters.
This briefing and consultation involves consideration of the powers, duties, privileges,
COUNCIL MEETING 62 APRIL 11, 2018
immunities, and/or liabilities of the Council and the County as they relate to this
agenda item as well as to consider sensitive matters related to public safety or
security, and to deliberate or make a decision upon a matter that requires the
consideration of information that must be kept confidential pursuant to a state or
federal law.
Councilmember Kagawa moved to convene into Executive Session for ES-945,
ES-946, ES-947, and ES-948, seconded by Councilmember Kaneshiro.
Council Chair Rapozo: Thank you. Any discussion or public
testimony?
There being no objections, the rules were suspended to take public testimony.
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
Council Chair Rapozo: Discussion? Councilmember Kagawa.
Councilmember Kagawa: For me, it has been six (6) years that I have
seen this Begley vs. County of Kaua`i item and to have something take that long to
still not get settled and to have a worker getting paid without having to work—I am
sure Mr. Begley is not happy with his result as far as his view of being in the public
eye in this situation. I just think that for the County, what has the KPD
administration and Human Resources learned from this? This is not the only case.
For me, I can see a year, maybe if it is complex, but I think six (6) years, for me, as
Kaipo would say, is"unreasonable." If it is unreasonable, then what have we learned?
How are we going to improve on that? Instead of it lasting six (6) to eight (8) years
and so forth, maybe we can get it down to one (1) year or speed it up a little bit. If
you are right, you put them on leave without pay. If you are wrong, then you bring
them back to work. Let us get the County of Kaua`i to pay for a salary that is actually
working. Like I said, a delay of some sort is reasonable as you do your investigation,
but this type of incidents, for me, is far too long. We have others on the burner right
now that I heard is coming to conclusion, but again, what have we learned? If we do
not learn anything, like Councilmember Kawakami said, that is the meaning of
"insanity" to just keep going down the same road and just continue and continue. The
same thing happened and nobody is accountable. I hope that somebody can tell me
at some point, either on the administration side of KPD or on the Human Resources
side, what have we learned and what are we going to change? Thank you.
Council Chair Rapozo: Thank you. Any other discussion? I think
everyone agrees with you, Councilmember Kagawa. It is frustrating to have this still
here. With that, roll call.
The motion to convene into Executive Session for ES-945, ES-946, ES-947, and
ES-948 was then put, and carried by the following vote:
COUNCIL MEETING 63 APRIL 11, 2018
FOR EXECUTIVE SESSION: Brun, Chock, Kagawa, Kaneshiro,
Kawakami, Yukimura, Rapozo TOTAL — 7,
AGAINST EXECUTIVE SESSION: None TOTAL— 0,
EXCUSED & NOT VOTING: None TOTAL— 0,
RECUSED & NOT VOTING: None TOTAL— 0.
Ms. Fountain-Tanigawa: Seven (7) ayes.
Council Chair Rapozo: With that, we will recess at this point and go
into Executive Session in five (5) minutes and then we will take the last item on the
agenda, following the public hearing at 1:30 p.m.
There being no objections, the meeting recessed at 11:35 a.m.
The meeting reconvened at 1:38 p.m., and proceeded as follows:
(Councilmember Yukimura was noted as excused.)
Council Chair Rapozo: Clerk, can you read our last item, please?
C 2018-106 Communication (03/28/2018) from the First Deputy County
Attorney, requesting authorization to expend additional funds of up to $100,000.00
from the Claims and Judgments account to satisfy the County of Kaua`i's self-insured
retention limit concerning the litigation of Mark N. Begley vs. County of Kaua`i, et
al., Civil No. CV16-00350, and related matters: Councilmember Kagawa moved to
approve C 2018-106, seconded by Councilmember Brun.
Council Chair Rapozo: Anyone from the public wishing to testify on
this?
There being no objections, the rules were suspended to take public testimony.
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
Council Chair Rapozo: Discussion? Councilmember Kagawa.
Councilmember Kagawa: Thank you, Chair. I want to thank the Office
of the County Attorney for updating us. I am going to have a written memorandum
out from our office to the Department of Human Resources, the Mayor, as well as the
Chief of Police and I want this questioned answered, because this Begley Case was
there prior to I even becoming on this Council...I think it was about eight (8) years
already that we had this officer on paid leave. I think these cases are unreasonable.
We need to make decisions sooner. I do not think it is right for taxpayers to be paying
people that are not physically working and the County just sitting there and waiting
for things to be done. My questions that I want answered are: what have we learned;
and in the future, should something arise like this in a similar case, what are we
going to do differently? I think making no adjustments, knowing mistakes have been
made, is truly the meaning of"insanity." Thank you, Chair.
COUNCIL MEETING 64 APRIL 11, 2018
Council Chair Rapozo: Any other discussion?
The motion to approve C 2018-106 was then put, and carried by a vote of 6:0:1
(Councilmember Yukimura was excused).
Council Chair Rapozo: Motion carried. With that, there is no further
business on the agenda. With no objections, this meeting is adjourned.
ADJOURNMENT.
There being no further business, the Council Meeting adjourned at 1:40 p.m.
Res•ectfully submitted,
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JADE K. FOUNTAIN-TANIGAWA
County Clerk
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