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HomeMy WebLinkAbout11/28/2018 Council minutes COUNCIL MEETING NOVEMBER 28, 2018 The Council Meeting of the Council of the County of Kaua`i was called to order by Council Chair Mel Rapozo at the Council Chambers, 4396 Rice Street, Suite 201, Lihu`e, Kaua`i, on Wednesday, November 28, 2018 at 8:59 a.m., after which the following Members answered the call of the roll: Honorable Arthur Brun (present at 9:55 a.m.) Honorable Mason K. Chock Honorable Ross Kagawa Honorable Arryl Kaneshiro Honorable Derek S.K. Kawakami Honorable JoAnn A. Yukimura Honorable Mel Rapozo (excused at 3:06 p.m. — 4:03 p.m.) Councilmember Kagawa: Council Chair Rapozo. Council Chair Rapozo: I am sorry. Councilmember Kagawa: May I ask for a moment of personal privilege? Council Chair Rapozo: Go ahead. The Council recessed at 9:00 a.m., for certificate presentations of the outgoing Councilmembers. The meeting reconvened at 10:36 a.m., and proceeded as follows: Council Chair Rapozo: We are on the approval of the agenda. Can I have a motion to approve the agenda, please? APPROVAL OF AGENDA. Councilmember Kawakami moved for approval of the agenda, as circulated, seconded by Councilmember Yukimura. Council Chair Rapozo: Thank you very much. I just want to ask, if there is no objection, Yoshito from the Kilauea Ag Park is here. We have a Legal Document on the agenda. He needs to be back out on the north shore. I apologize. Yoshito, I did not know that we were going to go through that this morning. If there is no objection, I would like to take that up first. Thank you. With that, the motion is to approve the agenda. The motion for approval of the agenda, as circulated, was then put, and unanimously carried (Pursuant to Rule No. 5(b) of the Rules of the Council of COUNCIL MEETING 2 NOVEMBER 28, 2018 the County of Kaua`i, Councilmember Brun was noted as silent (not present), but shall be recorded as an affirmative vote for the motion). Council Chair Rapozo: Motion carried. Let us do the Minutes and the Consent Calendar, and then we can go into item C 2018-266. MINUTES of the following meeting of the Council: November 14, 2018 Public Hearing re: Bill No. 2723, Bill No. 2724, and Bill No. 2725 Councilmember Brun moved to approve the Minutes as circulated, seconded by Councilmember Chock. Council Chair Rapozo: Is there 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 approval of the Minutes as circulated was then put, and unanimously carried (Pursuant to Rule No. 5(b) of the Rules of the Council of the County of Kauai, Councilmember Brun was noted as silent (not present), but shall be recorded as an affirmative vote for the motion). Council Chair Rapozo: Motion carried. Next item, the Consent Calendar, please. CONSENT CALENDAR: C 2018-256 Communication (10/03/2018) from Council Vice Chair Kagawa, transmitting for Council consideration, a request to receive and file Resolution No. 2013-38, a Resolution Supporting Kaua`i's Fishermen, Ocean Gatherers, And Recreational Ocean Users, which has been deferred since February 27, 2013 pending studies and reports by the National Oceanic and Atmospheric Administration (NOAA), because the substance contained in the Resolution may be considered inaccurate at this point in time. C 2018-257 Communication (11/07/2018) from the Director of Finance, transmitting for Council information, the First Quarter Statement of Equipment Purchases for Fiscal Year 2018-2019, purusant to Section 17 of Ordinance No. 2018-841, the Operating Budget of the County of Kaua`i for Fiscal Year 2018-2019. Council Chair Rapozo: Can I get a motion, please? Councilmember Chock moved to receive C 2018-256 and C 2018-257 for the record, seconded by Councilmember Kaneshiro. COUNCIL MEETING 3 NOVEMBER 28, 2018 Council Chair Rapozo: Is there 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 to receive C 2018-256 and C 2018-257 for the record was then put, and unanimously carried (Pursuant to Rule No. 5(b) of the Rules of the Council of the County of Kauai, Councilmember Brun was noted as silent (not present), but shall be recorded as an affirmative vote for the motion). Council Chair Rapozo: Thank you. With that, Jade, can we take up Legal Document C 2018-266, please? There being no objections, C 2018-266 was taken out of order. LEGAL DOCUMENTS: C 2018-266 Communication (10/16/2018) from the Director of Economic Development, recommending Council approval of a 60-Year Lease Agreement, between the County of Kaua`i and `Aina Ho`okupu 0 Kilauea, to continue the development of the Kilauea Community Agriculture Center, formerly known as the Kilauea Ag Park, Tax Map Key (TMK) No. (4) 5-2-004:047 (por.) and 99 (por.). • Lease Agreement Councilmember Chock moved to approve C 2018-266, seconded by Councilmember Kaneshiro. (Councilmember Brun was noted as present.) Council Chair Rapozo: With that, I will suspend the rules. George, if you want to start off, please, and then explain to us what you are doing. There being no objections, the rules were suspended. GEORGE K. COSTA, Director of Economic Development: Okay. For the record, George Costa, Director for the Office of Economic Development. Thank you, Council Chair Rapozo, for allowing us to come up at this time. Yoshito needs to get back to the north shore, but basically, we are requesting a sixty (60) year lease for `Aina Ho`okupu 0 Kilauea (AHK). They presently have a ten-year Stewardship Agreement with the County that was signed, I believe, four (4) years ago in 2014. The seventy-five (75) acres in Kilauea was something that the community really lobbied for and fought for, for many years. It sat dormant for approximately thirty (30) years before the developer signed over the deed to the County in 2006. Once the County received the land, the Office of Economic Development made every effort to try and develop the project. My predecessor, Beth Tokioka, took the lead and worked with COUNCIL MEETING 4 NOVEMBER 28, 2018 Kimura International and the community to develop a plan. Then when I came into the office, I worked with Kimura International, and then with the Economic Development Administration, we were going after a grant to develop the ag park. Part of the requirement was to do an Environmental Assessment (EA). After we did the assessment, we went to Seattle with our application for funding. At that time, we were looking at about a three million dollar ($3,000,000) project. After the EA was done, we found out that the costs had nearly doubled because we were required to drill three (3) four hundred (400) foot wells and build a one hundred thousand (100,000) gallon storage tank because the surface irrigation water that was once there, was no longer. We went to the community, presented the update, and that is when the community basically told us that they had lobbied for all of those years to help get that land back to develop it and farm it, only to have the County drive up the price tag to such a point where it was almost unfeasible to develop. That is when the community got together and requested that they take the land back in some form or fashion to help develop it because they had the sweat equity, equipment, and the passion to do it. In his wisdom, Mayor Carvalho worked with the Office of the County Attorney, Mauna Kea Trask formed the Stewardship Agreement, then Yoshito L'Hote with the farmers, formed the nonprofit Aina Ho`okupu o Kilauea, and 2014, they got the Stewardship Agreement. I apologize for distributing this business plan to you at the last minute, but Yoshito and I worked diligently to put this together to show what has been done in the last three (3) years on the property that sat fallow for so many years. Aina Ho`okupu o Kilauea has done a great job. Yoshito has gone out with his Board, the group, and a lot of volunteers and raised funds, besides the County funds that we supported, also raised funds in the community to help develop this project to the point where they now have potential investors wanting to provide more funding to develop the property, specifically the Sunshine Farmers Market area to build public restrooms to the tune of over two million dollars ($2,000,000) commitment. But what they would like to see from the County is a long-term commitment, so that these assets, once built, will remain with Aina Ho`okupu o Kilauea until such time that the lease is up and will be turned back to the County. For that, we are here today for this request. I want to turn it over to Yoshito. I know he can speak more accurately on the request and their needs. Yoshito. YOSHITO L'HOTE: For the record, Yoshito L'Hote, Chief Executive Officer (CEO) for Aina Ho`okupu o Kilauea. Basically, like what George has just mentioned, having to account for the assets was one of the reasons why going into a Lease Agreement would clarify that. The second reason is the Mayor, in engaging with`Aina Ho`okupu o Kilauea, always had an intention to have a long-term lease, but he did not know who we were and our ability to take care and develop the place. Therefore, the Stewardship Agreement was the best vehicle that we went on four (4) years ago. We really hoped that we have demonstrated to this Council and to everyone at the County-level, that we have been good stewards, that we are capable and able to drive this project to success, and we really hope to maintain and keep agriculture alive on the island of Kaua`I, because it is definitely under a big threat of disappearing with the general development that is taking place. We want to make sure that agriculture and the opportunity to diversify the economy is always there for our kids. Through this Lease Agreement, we really feel that it is just another great vote of confidence from this Council to `Aina Ho`okupu o Kilauea and to the project that we are taking place at Kaua`i Community Agricultural Center (KCAC). COUNCIL MEETING 5 NOVEMBER 28, 2018 Council Chair Rapozo: Thank you. Are there any questions for the Administration? Thank you very much. Mr. L'Hote: Thank you. Council Chair Rapozo: Do you have questions? Okay. Councilmember Yukimura. Councilmember Yukimura: We just got this business plan today. Mr. Costa: Right. Councilmember Yukimura: So I am just trying to look it over. Mr. Costa: Okay. Councilmember Yukimura: What are the requests for money that are coming in the future from the County? Mr. L'Hote: Part of going into the Lease Agreement is that we will be standing more on our own and we would like to not have to come back to Council unless there is some very needed situation that might arise, but really giving us the rein on our future and giving us more ability to control what is going on the land is another reason why we feel that the Lease Agreement will take the burden of having to request money from the Council away from us asking for that money. Councilmember Yukimura: So your business plan is for—does it have a period? Let us see, the goal of your plan is—I mean, I think the goal has been forever, the goal of getting, as George said, farmers on the land. When do you expect to do that by? Mr. L'Hote: Because we have secured the funds to be able to do the water system and we are unfortunately still waiting for procedures as far as the subdivision approval at the County-level to be able to record our easement to be able to start work, but we were hoping to have water, which is the infrastructure needed for farming, done by March. If this subdivision passes in January, every month, we have been waiting for, I think, nine (9) months for that subdivision to be approved. Due to the floods and due to other circumstances, that has not happened, we have a pre-approval already, but in order to get the final approval, they are waiting for a document from the Department of Transportation (DOT), which has not been coming forward. If everything goes great, by the end of the first quarter, we will be in and ready to provide the License Agreements to the farmers, but we have people farming right now. Councilmember Yukimura: You are going to give licenses to farmers. Do you have an agreement for the rights to the water? COUNCIL MEETING 6 NOVEMBER 28, 2018 Mr. L'Hote: Joan has left for Africa now, so she is not able to sign the document, but we are working with the lawyers and we basically finalized it. The document is ready for our Board to approve and sign, and then for Joan to come back and be able to do the same. Mr. Costa: Joan Porter. Mr. L'Hote: Yes, Joan Porter. I am sorry. Councilmember Yukimura: So you do not have a signed agreement on water yet? Mr. L'Hote: No. Councilmember Yukimura: When do you expect to get it by? Mr. L'Hote: Like I said, as soon as Joan Porter comes back from—when she will be able to come back and sign the document. Councilmember Yukimura: Do you know when she is coming back by? Mr. L'Hote: No, I do not have a date. I think it is before the end of the year. Councilmember Yukimura: When are you going to start building the water system? Mr. L'Hote: When the easement is recorded, which I think is going to be maybe February. Councilmember Yukimura: Okay, but... Mr. Costa: For clarification, there are several things in play right now. As Yoshito mentioned, the water use agreement or license with the porters from transmitting the water from Stone Dam to the Ag Community Center, which is about one point two (1.2) miles. The other subdivision document he is referring to is the Hay property, which is the makai side of Kuhio Highway, opposite of the mini golf. There is one (1) easement for this irrigation line to traverse through the Hay property and then through the Kaua`i Christian Academy property, which they have already received approval, and then underneath Kilauea Road to the ag park. Councilmember Yukimura: Okay. So you have easements through the Hay property and you have written and signed easements from `Aina Ho`okupu o Kilauea property, except for the DOT's property. Is that correct? Mr. L'Hote: The easement is part of the subdivision paper so yes, it is in there, but until the final approval comes, we do not have that yet. COUNCIL MEETING 7 NOVEMBER 28, 2018 Councilmember Yukimura: Are you talking about the easements through the Hay property and the Kaua`i Christian Academy? Mr. L'Hote: The Kaua`i Christian Academy already agreed and signed it. Councilmember Yukimura: Okay. Mr. L'Hote: We have the metes and bounds, we did the survey, and everything is ready. Councilmember Yukimura: So you have easement rights from the property all the way to your site, except for the Hay property and you do not yet have a signed water agreement, but your schedule is to put in the water infrastructure on-site this year? Mr. L'Hote: Not this year, beginning the first quarter of next year. Councilmember Yukimura: Well, yes. Mr. L'Hote: Obviously, all of this takes place in order. Councilmember Yukimura: Okay. How many farmers do you anticipate? What is your plan? What are your business plans for farmers? Mr. L'Hote: We are looking at facilitating ten (10) to twenty (20) farmers, but also internships and students, so that will probably bump up those numbers. We have looked in the business plan on the acreage developed and the return of the acreage, not specifically what the farmers do, rather what the acreage development is going to be. Councilmember Yukimura: But you told me in a meeting last week that you actually want a cooperative (co-op). Mr. L'Hote: We see that in the future, yes. The best way to manage KCAC will be to have the nonprofit as the administrator, but the farmers organized and created a co-op to have full transparency and understanding of what it takes to manage that site and to make sure that all of their concerns and efforts work together. Councilmember Yukimura: How is your license going to read then, if you are going to give licenses to individual farmers and then you are going to expect them to turn into a co-op? Mr. L'Hote: We feel like probably part of the licensing will include the fact that they need to participate in the co-op. COUNCIL MEETING 8 NOVEMBER 28, 2018 Councilmember Yukimura: I do not know if co-op start or even succeed that way. If you give out licenses, the farm plots are going to be how big? What is the largest plot? Mr. L'Hote: The plots and the way it is designed is that we can combine the acreage. If there is a farmer that needs five (5) acres, we can add five (5) acres. We do not foresee—there are so many variables. If there is one (1) person who wants to farm and there is no one else on the north shore who wants to farm, well, that one (1) farmer is going to get more land than if there are fifty (50) farmers that are trying to farm. We are trying to institute as many of the people that we can provide for. That is the reason why we have acreage defined and delineated separately, but they can be recombined and those licenses can cover acreage from one (1) to five (5). We feel like over five (5) acres will limit the amount of people that can benefit from the site, so those variables are really to be answered once we understand the number of farmers that need the land, as well as understand the dynamic of the crops, what is going to be planted, and how it works. Councilmember Yukimura: One of the needs that we hear is that they really need long-term leases in order to buy a tractor, put in fencing, or things like that. How are they going to operate on a license and how long is your license going to be for? Mr. L'Hote: Again, the duration of the license is related to the crop. Councilmember Yukimura: No, it is not. Mr. L'Hote: We believe that is why the cooperative model in tandem with the nonprofit abilities is to provide the infrastructure that demands that long-term commitment for someone who invests money in equipment and whatnot. We are looking to provide a lot of the infrastructure, and of the equipment, in order to really help facilitate the agriculture situation on the north shore, because that is part of the problems with farmers these days. They not only need to have the knowledge and the desire to work the land, but also to have all of the investment, all of the funding, and everything else. We want to see how we can change that paradigm and look at innovative models to be able to provide careers in ways that are not available today. Councilmember Yukimura: You mentioned that you will be putting in the on-site water infrastructure and are planning to put one (1) water meter per acre, so that is fifty-five (55) meters at a cost of twenty-five thousand dollars ($25,000), and that you will be using County money for that. Is that accurate? Mr. L'Hote: Yes, that is part of the last grant that the County has given us to implement the on-site water system. Councilmember Yukimura: Okay. I questioned the advisability of doing that because that is very expensive when you do not have a really clear plot plan that shows where you actually need the water meters. Fifty-five (55) water meters for fifty-five (55) acres—I have never heard of farming happening like that. COUNCIL MEETING 9 NOVEMBER 28, 2018 Mr. L'Hote: Again, this is a different model. This is not just one (1) farmer developing one (1) site. It is a place where we are going to have as many farmers as we can facilitate and be able to quantify the water use for each acre is not a bad thing. It does come with a little higher amount of money, but I think it is something—and they are flow meters, so they are some of the new technologies, which is cheaper than regular water meters. They allow the farmers to be very clear and understand what the water use is, when and what time of the day, and when it is needed. It will also be coupled with sensors and different/new technologies that are available to maximize our water use. Those flow meters will help to do that for each of the crops that are going to be coming in. Councilmember Yukimura: Thank you. Mr. L'Hote: You are welcome. Council Chair Rapozo: Are there any other questions? Councilmember Kaneshiro. Councilmember Kaneshiro: I just have a follow-up on the water meters. Are we talking about agricultural water or potable water? Mr. L'Hote: No. It is agricultural water. Councilmember Kaneshiro: Agricultural water? Mr. L'Hote: Yes. It is the reservoir, Kalihiwai Reservoir. Councilmember Kaneshiro: Why do we have to pay twenty-five thousand dollars ($25,000)? Councilmember Yukimura: No. It is five hundred dollars ($500) a meter. Councilmember Kaneshiro: Oh. Councilmember Yukimura: So fifty-five (55) will be approximately twenty-five thousand dollars ($25,000). Councilmember Kaneshiro: Okay. I was wondering—I did not see that in plan. Mr. L'Hote: Yes. Council Chair Rapozo: Anyone else? If not, thank you very much. Mr. L'Hote: Okay. Councilmember Kaneshiro, just to answer your question, we just want to understand what each farmer's use is because in this initial phase, we basically let farmers come on the land for free to demonstrate that agriculture was viable, and because of the situation we have being on the hydrant, last year, we paid over twenty thousand dollars ($20,000) for water. My COUNCIL MEETING 10 NOVEMBER 28, 2018 Board was really not happy about that and did not feel like not knowing what people were using is a problem. So part of the License Agreement might be that as far as the water use is concerned, because crops change so drastically from pineapple to lettuce, it is important that maybe that will be a separate fee that we will attach to the farmer and for that acre. That is the reason why we wanted to have that specific knowledge. Councilmember Kaneshiro: Yes, and we will not be putting water meters all upfront. I would think as a license comes in, then you put a water meter there. Then, if you are going to incorporate in the License Agreement, a fee for it or something. I did not understand the twenty-five thousand dollars ($25,000), but I get it now. Thank you. Councilmember Yukimura: Well, my understanding was you were going to put all of them in at one (1) time. Mr. L'Hote: It is five hundred dollars ($500) a meter. Councilmember Yukimura: But you were going to install all of it even as you wait for the mainline to come down. Is that correct? Mr. L'Hote: We did budget for it and the money was allocated from this Council to pay for it, so the answer is "yes," we are going to do that. Mr. Costa: But you are going to do it in phases. Councilmember Yukimura: But you are assuming that it is one (1) acre per farm. You have these farmers come on free to show that agriculture can happen, but I think it is pretty clear that you can grow crops on the land, but the question is can you grow it economically so that it is feasible for a farmer, because the thing about farming is it is not only being able to produce the crop, it is being able to make money as you produce the crop so that you can sustain your farm and keep going. I do not know that it is reasonable to suspect that you can have one (1) acre farms in that way. Mr. L'Hote: I do not think the one (1) acre farm—that is just the way it is laid out, but like I said, we can put two (2) or three (3) acres together, depending on the need of the specific farmers and understanding how many farmers are interested to come in on the land. Those are all variables that we just do not have the right answers today. Mr. Costa: The original plan we developed with Kimura International called for ten (10) five (5) acre plots, and then as we went through the discussions with the community with farmers, this site will be developed over the next three (3) to five (5) years. As we start opening up acreage over time, we may find one (1) farmer has a need for one (1) acre and another for three (3) acres, and then we install the meters according, like one (1) meter for three (3) acres instead of three (3) for each acre. So there is the flexibility, but as Yoshito said, he does have COUNCIL MEETING 11 NOVEMBER 28, 2018 the budget—if we do get fifty (50) farmers, to do fifty (50) one (1) acre parcels is probably not going to be the case. Councilmember Yukimura: Well, the volume of water will certainly change from crop to crop, but you are not going keep changing License Agreements in terms of the acreage of a farm from crop-to-crop. I am just having a hard time understanding how you are going to get economically feasible agriculture on that property and it feels like there has not been real addressing of the economics of a farm. Of course, it changes with your model, if it is a cooperative versus individual farms, but your business plan does not make clear and it is very expensive to do trial by error without a plan that changes from year-to-year. I am looking at the first Stewardship Agreement we had from Ke Kahua 0 Kaneiolouma and they have a clear plot plan and a clear budget. I do not have any clarity about how this is going to happen or that there has been enough thinking and planning on this. Mr. Costa: Just for clarification, what you have in the plan, the three (3) financial documents that you have, the first one is the capital improvement financial statement, which shows how much money has been spent over the last four (4) years. All the numbers in green are the County-funded projects. Everything in blue is Aina Ho`okupu 0 K-ilauea's funds that they either got from the State or through donations. So that gives you an idea how much was spent in the last four (4) years to put in the capital improvements, the assets. There is a blue column that signifies the original budget that I put together when we first worked with Kimura International of what it would cost, and that is where the almost seven million dollar ($7,000,000) price tag came in. So you will see, to-date, I believe we have spent a little over one million dollars ($1,000,000), so you can compare that to the original budget. Councilmember Yukimura: But, George, a business plan will have income as well as outgo. Mr. Costa: Right. Councilmember Yukimura: I do not know how you can predict income without knowing what is going to be grown and certainly, I know it changes, but you start out with a plan that has pretty good details of what crops are going to be growing, what kind of revenue you are going to get, and how that is going to offset the expenses. Mr. Costa: Right. The second financial statement that you have in the packet is the operations, basically funded by `Aina Ho`okupu 0 Kilauea without any County funds, and that shows the daily operations of `Aina Ho`okupu 0 Kilauea overseeing the site for the common are, which is all of the roadways, the irrigation lines; and then you have the community farm, which they run, the revenue that is generated off of the community farm and their expenses. Then, you have the community garden plots, which are smaller, individual plots for the community. Then,you have the Sunshine Market area. So you have about four (4) components that `Aina Ho`okupu 0 Kilauea is responsible for presently on the current ten (10) acres. Then as we expand the facility or the ag park, that financial COUNCIL MEETING 12 NOVEMBER 28, 2018 statement will reflect the expense as well as the revenue that is brought in running these entities. Now, the Sunshine Market is projected as well as the community farm, to bring in revenue and then once the License Agreements are done with the farmers, there is added revenue to offset the expenses. As Yoshito mentioned, with the License Agreement, it is more like being assessed a common area fee to help pay for the infrastructure, for the water, and so forth. So that is what that financial statement reflects. Then, the third one is a Gantt chart, which shows the various projects that have already taken place and the future projects that are going to take place in the next three (3) to five (5) years. Councilmember Yukimura: So your revenues for the future are—where is that? I only see "County of Kaua`i, State of Hawai`i, Federal, County of Kaua`i grants matching, fundraising by `Aina Ho`okupu 0 Kilauea, and donations." Mr. Costa: That is the capital improvements. That sheet that you have with the colors, that is purely capital improvements. Councilmember Yukimura: But where are the future revenues? Mr. Costa: And then the larger one shows the daily operations of present and projected revenue. Councilmember Yukimura: Where is your projected revenue? Mr. Costa: It should be on that second... Councilmember Yukimura: This long sheet? Mr. Costa: No. No, that is just a Gantt chart to show the different projects. Councilmember Yukimura: Well, is it the second to the last? Mr. Costa: It should be on the second financial statement. Just to get it on one (1) sheet, it is very small, so it is hard to read. Councilmember Yukimura: Are you looking at page 36 or 38? Mr. Costa: 38. Councilmember Yukimura: Okay. Your total revenues is under the green bar, right? I do not see any revenues generated from the—oh, wait...Farm lots...I see. Well, it only goes up to Fiscal Year 2019. Mr. Costa: Oh, okay. Councilmember Yukimura: So that is not the future revenues. COUNCIL MEETING 13 NOVEMBER 28, 2018 Mr. Costa: Yes. It is missing the second page, which shows the pro forma on the future projections. Councilmember Yukimura: It is not in here? Mr. Costa: Yes. I thought it was on the backside, but it did not print. Councilmember Yukimura: Okay. Well, I think this needs more work. Maybe it should go to Committee. Councilmember Chock: Let me ask, because I think if we are making—and I do not think this is true, but maybe George can answer this—I do not think this lease is dependent on a business plan, or is it? Is this lease that we are approving today contingent on a business plan? Mr. Costa: No, it is not. But we want to give the Council... Councilmember Chock: Okay, alright. When is the business plan slated to be completed? Is this the completed version or you are continuing to work on it? The projections forthcoming should go into the five-year period or at least two (2) years. We are look at something that is into 2019, correct? Mr. L'Hote: Yes. Mr. Costa: Right. Councilmember Chock: I appreciate the questions that Councilmember Yukimura is asking. I think they are important. I think she pointed out some areas of clarification that is needed. But as it relates to what I think we are trying to make a decision on, which is the lease, and maybe for some Members that it is an important thing that this be completed as such, but it is not for me. Council Chair Rapozo, if that is what we are doing and if it is...I do not know if I would even introduce this today if that was the matter, but it is such. Council Chair Rapozo: Well, I think they wanted to provide whatever information that they had. They have done a lot over the last few years. My understanding is that it is tough to go out and get grants and these major moneys without a commitment or an assurance that, in fact, you are going to be there next year or five (5) years. I think that is how I am looking at this, is that if you have a long-term lease, and we are talking about doing the same thing with the motorcycle track, which has absolutely no business plan, the bottom-line is to go out and secure funding and finance from good people that have money. They want to make sure that you are not there for only two (2) or three (3) years. Now, I am not an attorney and I trust that the attorney has reviewed the lease. I did go over the lease and from my level of understanding, it is sufficient. I feel comfortable that once we can allow this to move forward, then you can go out and do your job and secure this. To me, by the County saying, "Yes, we accept and will allow you folks to utilize this parcel of land COUNCIL MEETING 14 NOVEMBER 28, 2018 for the next sixty (60) years," that is a huge commitment on the County's part that when you go to "Mr. Rich Man" who is willing to see this through, they will know that the County and you folks are serious and that, in fact, writing the check might not be as difficult. That is how I see it. I would agree that I think going forward, whoever the Director of Economic Development will be, they have to work with you folks and really help you folks get this thing moving. That is how I see it. I would prefer us to vote this out today and get it going so you can go out and start getting some funds. Councilmember Yukimura and then Councilmember Kaneshiro. Councilmember Yukimura: I guess I look at it a little differently. As you say, Council Chair Rapozo, a sixty-year lease is a really long-term commitment. I feel that the Council plays the role of a board of trustees and that is a fiduciary duty. If we were the board of Kamehameha Schools giving out an agricultural lease, we would at least have a business plan. Actually, we have been waiting for a business plan ever since we gave the Stewardship Agreement, so that is for the last four (4) years. I would have a much better comfort level if we could see a business plan that has some substance to it. I prefer referring it back to Committee to ask for that level of assurance, that there is a plan for how these seventy-five (75) acres of agricultural land are going to be used for the next sixty (60) years. Of course, you cannot do that far a plan, but at least a five- and ten-year kind of projection. Council Chair Rapozo: Councilmember Kaneshiro. Councilmember Kaneshiro: My opinion on it is that we are moving forward with this project no matter what, so whether they give us a business plan now or later, I think they are asking for the License Agreement, which I am okay moving today. Councilmember Yukimura: It is a lease. Councilmember Kaneshiro: A lease. I do not think we are going to do anything else with that land. We have committed so much into it and we are still committed to doing agriculture on it. It is what it is. I just had a question. We had a Lease Agreement that got passed around—Is this the Lease Agreement that we are working off of or are working off of the one that is in the packet? Council Chair Rapozo: We are going have to amend the—what is in the packet is what is posted. Councilmember Kaneshiro: Okay. Council Chair Rapozo: So obviously, we are going to have to introduce... Councilmember Kaneshiro: Can we amend as circulated? Council Chair Rapozo: Yes. Well, we have to finish up with these people first because the rules are still suspended and I really want to use this time for questions. COUNCIL MEETING 15 NOVEMBER 28, 2018 Councilmember Kaneshiro: I have no questions for them. Council Chair Rapozo: When we call the meeting back to order, we can entertain the motion to amend. Councilmember Yukimura: I have one (1) more question. Council Chair Rapozo: Go ahead. Councilmember Yukimura: I noticed that your Board does not have any farmer on it. Mr. L'Hote: The two (2) farmers that were on the Board ended up farming and then some people felt like that was a conflict of interest, so they had to resign. That is kind of the reason why. Councilmember Yukimura: Well, if these are farmers that are beginning farmers, I am talking about a really seasoned farmer who understands... Mr. L'Hote: I am you talking about Rodney Yadao and Ben Ferris that were on my board, they were the two (2) farmers. Councilmember Brun: Rodney has been farming a long time, right? Mr. L'Hote: Yes, both of them, thirty-five (35) years. Councilmember Brun: Okay. Mr. L'Hote: Those are farmers that I am talking about. Councilmember Brun: Okay. Mr. L'Hote: Not new farmers. Councilmember Yukimura: So you do not have any farmer at this time? Mr. L'Hote: Not currently and I am trying to get that kind of understanding. I did ask Peter from DOW Chemical if he was interested in being on my Board. He is more worried about my ties right now than serving on anything else. I would like to have the depth of understanding of people that know farming up-and-down. It is very important, but board members are not easy to come by. Council Chair Rapozo: Maybe you can put them on ex-officios so they cannot vote. Mr. L'Hote: Right. Council Chair Rapozo: They are there. It is a tough spot to be in. You are a farmer, so in the development phase, you needed them on the Board and now COUNCIL MEETING 16 NOVEMBER 28, 2018 you have the farm and they want to farm. They do not want to be board member. They want to farm. I understand the conflict, but if you make them ex-officio, they do not have any voting rights. At least you have their advice and participation. Mr. L'Hote: Yes. Council Chair Rapozo: But I understand the conflict or the potential. Councilmember Yukimura: So these two (2) farmers are farming on the site right now? Mr. L'Hote: Right now, they are not, because we just finished the season, so they harvested and because the License Agreement is pending, and as far as Ben is concerned, he was wanting to wait until that is all clarified and the water system is in place because of the debacle that we had last year about the water was not something that... Councilmember Yukimura: What about Rodney? Mr. L'Hote: Rodney just stopped farming the corn and he is not interested in farming anymore, is what he said. But I do reach out to those people. They are in my community. If I have any questions or concerns, we keep them updated with the progress as well. Councilmember Yukimura: Okay. Mr. L'Hote: We have been working on the plan. We have been producing different plans and we have—I thought we did well by producing something that I sent in the package, doing all of the numbers on the development and kind of developing this more precise income side for the farm and making sure that the farm can afford the farm. The nonprofit is always going to be there to do the heavy lifting for capital improvements for making sure that the Administration is being paid and taking care of the site. But we really are looking to build a solid business plan off of the revenue from the site and how the farmers are going to make is sure it is a well-managed, well-maintained, and thriving agriculture center in the future. Councilmember Yukimura: Okay. Thank you. Council Chair Rapozo: Councilmember Kagawa. Councilmember Kagawa: Thank you for all of your work, Yoshito and George, up to this point. There seems to be some concern that perhaps we are not moving as fast as we should with the business side. My concern is that I do not mind moving forward with everything, but I need to know if we are confident that when we get that water in place, that we are going to have a majority of the fifty-five (55) acres being farmed by interested people. Are we confident in that? COUNCIL MEETING 17 NOVEMBER 28, 2018 Mr. L'Hote: Yes. I see what has happened in the high schools in the last couple of years and I really see there is a desire for the kids to not work the service industry and we need to create the financial reality for them to become farmers. So I definitely see this site to be vibrant, to be fully farmed, and to demonstrate not just our ability to provide for ourselves, but also an ability to support our future workers with an adequate income, because growing things is not the hard part, the hard part is everything else. It is the marketing, aggregation, and promotion. But right now, the only problem is supply. There is just no supply. We have to grow things. The more land that is made open and people willing to farm it, the more we can answer, to that first kind of"choke-neck" that we are facing right now. Councilmember Yukimura: So, we are confident at least half of that ag park, when we are ready, it is going to be good? Mr. L'Hote: Yes. We definitely feel like... Councilmember Kagawa: That is all I need to know because I know there are a lot of variables and it is not a simple solution. When I came on board on this Council, the Administration said, "We have six (6) more years at the Kekaha Landfill. No more extensions." Six (6) years from then, we have had two (2) major extensions and now we are saying that we have nine (9) more years. The County cannot expect more of the community when we cannot even meet our deadlines, is what I am trying to say because it is complex issue. You do not just open up a landfill because you feel like it. You do not just see people farming because we know we have to eat food. It is very complicated and I appreciate you folks are going to tackle it. I just need to know that the community, when we are ready, we are going to see interested people, because if not, then I have question marks like how Councilmember Yukimura has. Mr. L'Hote: I cannot predict the future because obviously... Councilmember Kagawa: I know that, but I need your expertise. Mr. L'Hote: As long as there is a local community, I believe that yes, there is the interest and there is the desire. We just have to make sure we facilitate the ability. That is what we are here for and that is why it is a very different model. We are trying to create an ag accelerator. We want the youth to be plugged in making money right away. They do not have to have a lot of money to start farming and they do not have to know all of the marketing and everything. We are going to support them to be successful. Once they get the taste of money, they will keep going, they will be innovative, and they will push the envelope in ways that we do not even know how now. But the model that agriculture is using today, the dairy closed, banana closed, and sugar closed—everything is closing. It is no longer working. We have to understand and look at this completely different and luckily, the local food movement is really strong, so how do we facilitate and penetrate that and get the money out of that? COUNCIL MEETING 18 NOVEMBER 28, 2018 Councilmember Kagawa: Thank you. Council Chair Rapozo: Councilmember Brun. Councilmember Brun: Yoshito, are you working Kapa'a High School? Mr. L'Hote: Yes, and Kaua`i High School, too. Councilmember Brun: Right on. I went there to do a talk one day about agriculture and I think they had about eight (80) students. Now, they are up to two hundred (200). They have to turn kids away. There is interest in farming and I am glad you folks are reaching out to them because there are a lot of kids who want to farm. Two hundred (200) kids showing up for an agricultural program at a high school is a lot of kids. There is a lot of interest and just keep it up. Thank you for all that you folks are doing. I just wanted to make sure that you folks are reaching out to the high schools. Mr. L'Hote: Thank you. Actually, our biggest piece that is missing for our business plan is creating the business model for agriculture. We do not even understand how much money there is to be made with agriculture. If we can develop this business model, that will identify how many jobs will be available, what kind of training we need to provide, and what kinds of crops we are going to be producing. So there is that piece that needs to be done and it is going cost a little bit of money, but that is our next priority as far as understanding the agriculture picture. Council Chair Rapozo: But without water... Mr. L'Hote: You cannot even farm. Council Chair Rapozo: ...nothing is going to happen. Mr. L'Hote: Exactly. Council Chair Rapozo: And without a lease, what are the chances of securing those funds to get the water and the irrigation system implemented and constructed? What are the chances without a lease? Mr. L'Hote: They are a lot smaller than if you have one. I mean, it is County assets. Everything will always belong to the County. That is not even the issue. We are happy to facilitate that. It is just in the books, it is a little complicated. Then, without a lease, what is going to happen in two (2) years? Who is going to be running the show in two (2) years or four (4) years? You see the stress. Every two (2) years, you change the Council. It is hard. The continuity, the vision, and everything is challenged when those changes take place. Council Chair Rapozo: I just want to make sure we give you the tools you need so you can pursue a successful operation out there. Mr. L'Hote: I really appreciate that. I appreciate all your years of service, you too, Councilmember Yukimura. Thank you so much for having COUNCIL MEETING 19 NOVEMBER 28, 2018 served this island so well for so many years. You have always been nothing but supportive and I want to commend you folks for that. I really appreciate it. Council Chair Rapozo: Thank you. Are there any more questions for the Administration? Councilmember Yukimura. Councilmember Yukimura: I, too, have been really encouraged about all of these kids. One of the highlights of this term has been that report-out about the agriculture intern program. The thing is, as Jerry Ornellas always says, unless they can make a living, you will not have them come into agriculture. I am trying to understand how the farmers there are going to make a living. They are generally not going to make a living on one (1) acre. I am not even sure they can make a living on five (5) acres. So that is what is unclear to me in terms of—because we can develop that, but if it is not set up so they can make a living and paying attention to the economics of farming, then I do not know how you are going to give them that opportunity. Mr. Costa: I personally feel with this model that Yoshito is putting together, more of a co-op, they are providing the infrastructure, the equipment, the machinery, and they are providing—unless that farmer comes with knowledge already, they are also providing the knowledge, the experience, and training. This is really not a traditional ag park. It is seventy-five (75) acres. It is more an "incubator," that is the way I see it, and the program is set up. The hope is that the farmers that are going to come and participate at this incubator may stay for a long time or they may get very good at it where they find larger pieces of property. There are Grove Farm and Agribusiness Development Corporation (ADC). There are a lot of larger tracts of land. That is the vision and something that Yoshito shared with me, and I would like to see it at least tried. Mr. L'Hote: There are a lot of ag land on Kaua`i and I think eventually, the Council can make the law so that when new permits are issued, the person does not just plant a dozen trees and say, "I have a farm," but really has to show income. If he is not willing to do it, allow someone else to show that income. That is where those kids can be plugged into the system. They have the land and the infrastructure paid for. They have the knowledge from the incubator and they go on to become successful members of agriculture. Council Chair Rapozo: Got it. Are there any other questions? Thank you very much. Mr. Costa: Thank you. Mr. L'Hote: Thank you so much. Council Chair Rapozo: Is there anyone registered to speak on this? Ms. Fountain-Tanigawa: We have one (1) registered speaker, Jill Lowry. COUNCIL MEETING 20 NOVEMBER 28, 2018 JILL LOWRY: Jill Lowry, for the record. Last year, I worked with Yoshito and George on the ag center at AHK and there was actually a situation where a grant was applied for that was started before I joined and I took it over. We did not get the grant, but one of the reasons we did not get the grant was because there was a concern about longevity with a lease that I believe the grant was for about three hundred fifty thousand dollars ($350,000). This is a project that requires a lot of money. Let us be clear on that, and for a long amount of years ahead, this is going to require a lot of money. Revenue, yes. Grants, yes. Private donations, yes. Farmers included. Everyone needs the confidence that this is going to be here, if not in perpetuity, pretty close to it. The feedback that we got is that they were not willing to provide the money without some sort of confidence that the center would be there. I would say because this is my career, that anything over two hundred fifty thousand dollars ($250,000), anyone that wants to invest that kind of money is going to need that kind of confidence to be able to move forward. The other thing I would say about their strategic plan is, any strategic plan is a living document that changes with the business and the needs. Certainly in farming, needs change all the time. Councilmember Yukimura, you have my mad respect, you know that, but I do disagree with you on this one. I think that AHK really deserves and needs to have this lease. Respectfully, that is my opinion. Thank you for the time. Council Chair Rapozo: Thank you very much. Felicia. FELICIA COWDEN: Felicia Cowden, for the record. It is almost painful for me to be listening to this conversation. I live one (1) block from the park, the farm, the ag park. I have an overwhelmingly abundant yard of all kinds of tree crops and I have not laid a hose in six (6) years. In the thirty (30) years when this park was not being used, a whole bunch of us successfully "gorilla-gardened" that park with tree crops that grow without any kind of hose or without any kind of element. I am a political person for the Hawai`i Farmers Union United. I am the Vice President of Regeneration. We have the food forest there in Kilauea. I was the Treasurer for when we put in the fruit forest. It is six (6) years old now. We spent a total of thirteen thousand dollars ($13,000) in those years. There are plenty of men and women, not kids, who are ready to farm. But what is productive is tree crops, things that are more about three- to five-year type of bushes where you make that money. With this short Licensing Agreement, it is not worth doing. I completely disagree with the assertions that are made. People can easily take an acre, three (3) people go in there part-time as something that they do as a supplemental piece of their income, and have an effective crop. Usually, there would probably be three (3) or four (4) different types of tree crops that go right in there together. I challenge all of you and invite all of you to come and see our fruit forest that we do not water, we do not need to water that. This is not growing lettuce. When you have a short-term, you have grow lettuce and you have to have all of that water, when you are going avocados, mangos, and all of these tropical fruits. We have over one hundred (100) different varieties of tropical fruits in our food forest. Our food forest is designed for seeds. It is our living seed bank that we give those seeds away for free where we put them in. We maintain that several acres there with just some volunteer help. I know it is possible to grow that property and when we think in an agriculture approach that is appropriate for commercial farming or in a dry area or different area, we have a whole different look at what is going on. We have kids that we are raising up for COUNCIL MEETING 21 NOVEMBER 28, 2018 this. The farm community that is in that northeast area there, they live on nothing. They are hard scrabble people who have no money. This biggest thing that would help is if there is some kind housing near where they live, but to have one (1) acre of tree crops is very easy. With this sixty-year lease, that could happen. With a four (4) year process, it is not even thinkable. Thank you. We would move our food forest there or add a new one. Councilmember Yukimura: I just have a question. Ms. Cowden: Yes. Councilmember Yukimura: Have you been tracking the production of how much produce is actually produced by you? Ms. Cowden: Please come up and see it us with. It is overwhelming amounts. Councilmember Yukimura: I am sure it is beautiful and I am sure it is producing. I just wondered if you are tracking the production. Ms. Cowden: It is not for sale. That is a seed bank. Councilmember Yukimura: Okay. Ms. Cowden: So we give plant starts away and crops. That is the point of that. The production is not measured in dollars. Councilmember Yukimura: Oh. Ms. Cowden: It is very productive. Please come. Councilmember Yukimura: No, it was not in dollars. It was pounds. Council Chair Rapozo: Is that microphone next to you off? Ms. Cowden: Yes. Council Chair Rapozo: It is off. I am hearing a really... Ms. Cowden: I am sorry. It is probably the emotion in my voice. I have watched this whole process come forward and I feel passionate about it. We have to get rid of the hurdles that are in the way. I wholeheartedly support this lease. Council Chair Rapozo: Are there any more questions? Thank you very much. Anyone else wishing to testify? BRUCE HART: For the record, Bruce Hart. Felicia coming up before me is just providential. I agree with everything she said. I have mentioned to Councilmember Chock when another agriculture bill came up not too long ago, and I COUNCIL MEETING 22 NOVEMBER 28, 2018 asked him, "Is there any way that someone can plant tree crops and not have to show income until they start producing?" I am asking. I am echoing what Felicia said. Please try to come up with a way. I, myself, would be interested if I could acquire five (5) acres, invest tree crops, and have a long enough lease that I am going to see not only a return economically, but I want to take the pride in having done it and having developed a market for it. I want to last long enough that I can go there at night and sit there among my trees. This has been a dream of mine for many years and I just gave it up, but this sounds like it is possible. Thank you. Council Chair Rapozo: Bruce has some of the best avocados I have ever tasted in my whole entire life. GREG CROWE: Greg Growe. I would like to say that I am really in support of this sixty-year lease. It is a good concept, in general. Particularly living up in the north shore, I have probably gone to every meeting of the Kilauea Neighborhood Association for the last couple of years with maybe missing one (1) of them. Seeing what they have already done with that ag park is miraculous and inspiring. I think it can be a great model for the whole island. There are innovations that are going on and we have to get out of our own way by removing this "catch-22 of saying if we are innovating something, we do not know all of the details of how it is going to work, but if you have good people...there is an old saying, "I would rather have an A-team with a B-plan, than an A-plan with a B-team." I think in Kilauea, we have an A-team and they deserve the support of this community. I also think in terms of Councilmember Yukimura asking the great questions that you do ask, there are actually some models elsewhere. I was just listening to a program another night of a person who specializes in doing urban farming on small vacant lots less than an acre. He has actually done the studies and economics where, in fact, they produce more value per acre than large commercial farms. So there is a new model out there that can be adopted here and should be supported. The two (2) most basic essential services that everyone needs is food and housing. I think here is another example of something we can really do for food and I put in a little plug on the side that we might also want to look into some housing for the farmers, but that is the other big issue. I really think this needs to be supported and if there are some concerns about things, then fine, put some conditions in it, but give them the assurance that if you meet basic guidelines or milestones—I have not seen the lease nor had a chance to read through all of that, but those could easily be put in there, that put some milestones, but give them the lease so they can go forward, get the rest of the funding, and do they needs that they need to. Another thing I know that they have already done there, they have already had a community support agricultural type of program where people sign up in advance to buy a box of food every week, and they are fully subscribed with what they can do right now. More farmers would be there. Again, I know a bunch of the individual farmers who are actually making living on an acre or less, but they are often invisible, in a sense, because they are in the underground economy because they cannot come forward and say, "I am a legal farm," because there is not a mechanism for them to be living on their land and farming. Again, that is another "catch-22" that we are trying to work on with housing, and we know that is one of the farmworker housing issues or one of the challenges that we have to confront. The bottom-line here is that this is really worth supporting going forward and justified concerns, fine. If anything, put a little condition on it. I would expect COUNCIL MEETING 23 NOVEMBER 28, 2018 the lease already has some things and performance requirements, but remove the "catch-22." You have an "A-team" here. They will figure it out, if anyone can, and I think they can. Thank you. Councilmember Yukimura: Question. Council Chair Rapozo: Go ahead. Councilmember Yukimura: Question, Greg. I do not see any real milestones. I was just curious as to what kind of milestones you would suggest. Mr. Crowe: Well, for one, since one of the questions was "where the more detailed business plan is," give them six (6) months or a year to come up with a more detailed business plan. Then, assuming that they do that—deadlines are wonderful things. They focus everyone's attention. So if you are concerned about a more detailed business planning, say, "Okay, we will give you your sixty-year lease conditional on seeing a business plan within a year." Talk to them about what is a reasonable timeframe and come up with it if there is a real concern about that. But I also caution that do not be unrealistic with saying there has to be a completely detailed business plan that can only be based upon things that are in past. We know the past models of agriculture have failed on this island. They do not work. Sugarcane is gone, et cetera. We have already gone through those. We have to come up with new models and we do not have all of the answers for a new model. Councilmember Yukimura: Okay. Council Chair Rapozo: Thank you. Mr. Crowe: Thank you. Council Chair Rapozo: Anyone else wishing to testify? Seeing none, I will call the meeting back to order. There being no further testimony, the meeting was called back to order, and proceeded as follows: Council Chair Rapozo: Is there any further discussion? Councilmember Kagawa. Councilmember Kagawa: Like I said, going to be back to the landfill story, let us travel the world to try to find solutions on the legislative end to try and fix the landfill problem. It is disastrous. The workers tell me it is dangerous. They said, "People are going die." One (1) already did die. It is so high and steep. It is crazy how big that landfill is, and yet, six (6)years later, we are three (3)years behind. We have nine (9) years, nine (9) years worse off than we were six (6) years ago. We are going to tell these people, "Where is your plan?" We had a plan. We did not execute. I hope Councilmember Kawakami is going to execute because we cannot keep falling nine (9) years more behind every six (6) years. Now with this ag park, from day one, I have been behind it because I have heard, "Hey, we are going to be COUNCIL MEETING 24 NOVEMBER 28, 2018 better off. We can grow more food." Land is so expensive in Hawai`i, barriers to getting water is so difficult. This is an incubator as George said. This is an incubator and if someone can go there and make money, create some jobs, and create education, how do we not put a price on the education? People pay thirty thousand dollars ($30,000) a year to educate their children after high school. This is real-life education for those that do not want to go to college. Learn how to grow sugarloaf pineapple in bulk. The demand will never go down. The pineapple is so ono, or whatever it is. I am worried about the parakeets, though. We grow a lot of good rambutan and lychee out in Ki ilauea. It is the best. But the parakeets are going to eat them all, so we have to do our side, too, working with the Department of Agriculture. You talk about complex, there is nothing more complex than growing food, which is the simplest thing, you would think. But to do it and actually make money on the most expensive land in the world, that is why. I tell you it is tough, but we have to invest and take these risks, or else we will never do the most basic thing. We keep saying"grow more food and create more jobs" rather than ship them across the ocean. Who knows what they spray those things with? It is not normal for a fruit to stay nice for that long. They must spray things on it, rather than eating fresh food and fresh vegetables right here. I will tell you that it tastes a lot better when you get the local people putting their heart and soul in it. It may not look as nice as the one from Costco, but it tastes better because it is fresh. I am not this organic healthy person like Councilmember Yukimura, but maybe I should be and then I will be as healthy as she is. But let us get behind Yoshito and stay behind him. Yoshito is the right man for the job. He is a good man. I trust him. I know that if he is in trouble, he will come and ask. Thank you, Council Chair Rapozo. Council Chair Rapozo: Councilmember Kaneshiro. Councilmember Kaneshiro moved to amend C 2018-266 as circulated, and as shown in the Floor Amendment, which is attached hereto as Attachment 1, seconded by Councilmember Brun. Councilmember Kaneshiro: There is just a small change. It was on the subletting part where it said "they shall not rent." This allows the licensee to do a License Agreement and if they want to collect rent on the License Agreement, they can. Council Chair Rapozo: Okay. Is there any discussion on the amendment? The motion to amend C 2018-266 as circulated, and as shown in the Floor Amendment, which is attached hereto as Attachment 1 was then put, and unanimously carried. Council Chair Rapozo: Go ahead. Councilmember Kagawa: Oh, we voted. Council Chair Rapozo: Yes, that is fine. Go ahead, it is not going to matter. COUNCIL MEETING 25 NOVEMBER 28, 2018 Councilmember Kaneshiro: This amendment came from the County Attorney. Councilmember Yukimura: Yes. It says, "The license fee shall not sublet the whole or any portion" but it can rent, because you are taking out "not rent." Councilmember Kaneshiro: Originally when I read it, it said "Lessee shall not rent or sublet the whole parcel." It means if they do a License Agreement, they cannot collect money on a License Agreement or anything. I think Mauna Kea came in and cleaned it up so that the intention is not to sublet the entire parcel to another entity, but we know the intention is to do little license agreements for parcels along the way, and this gives them the flexibility to charge a rent, a (inaudible), or something to the license agreement that they want. Councilmember Yukimura: If I may ask the question then, basically, you are not allowing, and I think we all agree that the property should not be transferred to another entity and that is what the word "sublet"—no. Well anyway, right now, the proposed... MAUNA KEA TRASK, County Attorney: Aloha... Councilmember Yukimura: ...amendment is to disallow subletting, but allow renting? Council Chair Rapozo: I will suspend the rules. There being no objections, the rules were suspended. Mr. Trask: No. For the record, Mauna Kea Trask, County Attorney. The amendment was changed, the heading on paragraph 16, from "Subletting" to "License Agreements." It states in total, "The Lessee" being the community group, "shall not rent or sublet the whole or any portion of the premises, provided that the Lessee may issue license agreements with farmers for a portion of the property for use as farm plots in a manner consistent with this agreement and with written notice and approval by the lessor," that would be the County of Kaua`i via Office of Economic Development (OED). So that, I think, provides that oversight that has been discussed on this floor just to make sure that this is the license agreement. Those questions can be asked appropriately and approved appropriately to make sure that nothing untoward is happening and that everything is consistent with the agreement. The reason why it is not "sublet" is because licenses are freely revocable and give the possessor no estate or property interest in the property. It is just an ability to use it, a specific lesser portion of the whole property, and so that is the differentiation between the two (2). We discussed it briefly a couple of meetings ago. Council Chair Rapozo: The question is, can they rent out a portion of the lot without any approval from the County? COUNCIL MEETING 26 NOVEMBER 28, 2018 Mr. Trask: They can issue license agreements, but with approval from the County. Council Chair Rapozo: No, but can they rent out? Subletting and renting are two (2) different things? Mr. Trask: No. Actually, subletting and renting—rent is the amount paid whether it is a license or a lease. You pay rent. But a license and a lease are different. The difference is, and I have it right here—I know how you folks love when I cite case law. Let us see, "in contrast to a lease, a license in the law of real estate property conveys no estate or land. It is not assignable and is revocable at the will of the licensor." So rent is the amount charged. Council Chair Rapozo: Well... Mr. Trask: They cannot sublet, but they can license, which I think is what they want to do. Council Chair Rapozo: Mauna Kea, you can rent a house and have absolutely no ownership or any kind of connection to that property, versus a lease. If I go out and have a lease agreement on a property, I can go to the bank and get a loan based on that lease. I cannot do that as a rental. So there is a difference. A rental agreement and lease are two (2) different things. Mr. Trask: Well... Council Chair Rapozo: If I am renting a house, I cannot go to the bank and say, "I would like to take a loan out on my rental property," because I have absolutely no ownership. Mr. Trask: For the purpose of this agreement, I do not think that the landlord-tenant analogy really follows. What we are talking about here is use of land for agriculture. Council Chair Rapozo: Okay. I just want to make sure because it is like what—the amendment removes "rent or sublet," so I want to make sure that was not something that was... Mr. Trask: Well originally, it was. Council Chair Rapozo: Right. Mr. Trask: But then the question came up, does that mean we cannot charge for the license? I said, "Well, maybe because rent is rent." I am not talking from a commonsense perspective; I am talking from the uncommon legal perspective. Council Chair Rapozo: And that is what... COUNCIL MEETING 27 NOVEMBER 28, 2018 Mr. Trask: That is what I want to differentiate. Council Chair Rapozo: Okay. Mr. Trask: You can charge rent and that is the whole point. You want this to be as sustainable as possible. So to only be able to give free licenses gets countered to the hour we have talked about it already. Council Chair Rapozo: That is all I needed to know, was that this prohibits or prevents them from renting out, leasing out, subletting out, any kind of "out" without the County approval. Mr. Trask: Yes. Council Chair Rapozo: Okay. Thank you. Are there any more questions for Mauna Kea? Thank you very much. I will call the meeting back to order. There being no objections, the meeting was called back to order, and proceeded as follows: Council Chair Rapozo: Is there any further discussion? Councilmember Brun: Thank you, Council Chair Rapozo. I just want to thank Yoshito and everyone. I am in full support of this going forward. I know how hard it is to farm. Their job is farming. I am glad that you are working with the high schools and whatnot, and getting them in. For Bruce, there is a lot of land out there. I know a landowner who has a lot of acres and I can hook you up with them and see if you want to rent from them. Thank you. Council Chair Rapozo: Anyone else? Councilmember Kawakami. Councilmember Kawakami: Thank you, Council Chair Rapozo. Thank you to Yoshito, George, and to the Kilauea Ag Park. It is a great endeavor. At the State House of Representatives, I was able to push through a grant-in-aid for them and really, this is a great public-private partnership. This is the way that we bend that cost of doing business curve downwards, and it is the same the model that we should use for affordable housing. If the County and State can put up the land, then you are taking the cost of land out of the equation. If you take the cost of infrastructure out of the equation and equipment, that is what you can do to create affordable farming, and that is the number one issue with farming, the cost of land, getting infrastructure, and equipment. This is a great incubator project and hopefully, it will springboard a young generation of farmers and agricultural folks into bigger and better things. I am in full support of this. Yes, the only way you can get financing is with this long-term Lease Agreement. Thank you. Council Chair Rapozo: Councilmember Chock. COUNCIL MEETING 28 NOVEMBER 28, 2018 Councilmember Chock: Thank you, Council Chair Rapozo. I am very supportive of this request as well as the amendment on the table. For all the reasons that have been mentioned, and I will not go in them, I think moving forward, I would like to just make the suggestion—I think this is the start of a great plan, but I do think there is more work in terms of details. I like where you start to create the vision on 2027 and 2028 about what that looks like in five (5) years, but certainly, as we look at a complete business plan, what that ten to twenty percent (10-20%) gross income from on-site production actually looks like and how we materialize it is some of the questions that you have seen this body ask as only one small part of the equation of how we make this a sustainable project. I look forward to that in future. Water first, and then we will get to that. Thank you. Council Chair Rapozo: Anyone else? Councilmember Kaneshiro. Councilmember Kaneshiro: I will just say my comments already. I am in favor of this Lease Agreement. Farming is hard. That is the bottom-line. If we told anyone, "You are going to have to spend over five hundred thousand dollars ($500,000) to farm on the get-go," I do not think anyone would want to do it. Here, you have the County and the State understanding the importance of farming, the importance and opportunity for people to learn to farm, and I think that is what we are bringing here, is the opportunity to learn. What is their business plan going say? I have no clue. The business plan is going to change. If it was probably thirty (30) years ago, it would have said, "We are going to grow sugar and different varieties of sugar and try to get the most productive sugarcane we can." If it was maybe fifteen (15) years ago, they might have been trying to grow guava because they had been guava farms on the north shore. Now, I do not know. Maybe they might be trying to grow recreational marijuana in the future. But we have no clue what... Council Chair Rapozo: Mauna Kea, we are not supporting this then. Councilmember Kaneshiro: It might be legal in the future. But the truth is that we do not know what is going to be the productive crop for people to have. I think this is providing people the opportunity. If they want to grow lettuce, they can grow lettuce and see what the financials come out with one (1) acre rather than taking a big parcel of land. You can try to see how your financials work out. All this does is provide an opportunity. I do not think we are going to come here and try to unwind this entire agreement. We are committed to agriculture and to the County seeing this project through, and I think this is just another step forward in it. I will be supporting this. Council Chair Rapozo: Thank you, anyone else? Councilmember Yukimura. Councilmember Yukimura: Yes. I am going to be supporting this, too. I will tell you that it is really the community support that is pushing me over the line. The community support has come, I think, because of the excellent work that Yoshito has been doing with his Board. But I also have some real reservations and would feel more comfortable if we had put this back in Committee because I do believe it is the responsibility of the Office of Economic Development to really work with the COUNCIL MEETING 29 NOVEMBER 28, 2018 community group to vet the plan for this area very carefully. It surely is complex. It is a complex issue and that is why it is so important to do the careful research and to do the planning. Even when it is innovative, you have to have a plan or a strategy. Otherwise, you are using public money and trying things, and trying things, and trying things. My understanding is that when you put in infrastructure, you have a good plan of how you are going to—and you do it with the idea of flexibility, but you do not do it—I mean, the whole idea of a plan, why you do plans for housing, plans for a house, plans for a program, or plans is so that you do not waste money with trial and error. Actually, what Councilmember Chock said about needing more details of the plan and we need water first, that was the same conversation we had four (4) years ago when the Stewardship Agreement came up. Basically, there has been no clear business plan for four (4) years. If we were a bank and you are going to be going maybe not to banks, but to people or entities that can give you money, I think people will require a level of planning that we have not yet seen produced. I was looking back in our files. We had a line item for an islandwide ag park system and that has been pretty much diverted into this project. So, the ag park was the goal and the goal of the ag park was to have commercial farmers. Now, maybe this is now turning into an incubator site or maybe it is going to be both, but I have not yet seen how that is going to happen or least a projection of how it is going to happen. But the vision is very tantalizing and the work that has been done to actually get activity on the land is reassuring. The economics are not yet clear. The question is, how are we going to get it into a sustainable operation? I do not think I have seen that plan yet. I hope that will be forthcoming and I hope that we will see fifty-five (55) acres producing food for the Kilauea community as well as the wider community in at least ten (10) years. Council Chair Rapozo: Anyone else? If not, thank you. Thank you all for being here. I have to say, it was 2006 when that land was deeded over to the County. That was twelve (12) years ago, and we have been talking a lot about agriculture, sustaining agriculture, supporting agriculture, and this is long overdue. I do not see how we cannot provide this Lease to this organization. We have just been through enough with that parcel. The Haraguchis out on the north shore have a year- to-year lease with the State. How can you function as a farmer when your lease agreement is shorter than the crop cycle of whatever you are growing? How can you go to the bank or anywhere and say, "Can we get a loan for a tractor?" The term of the loan is longer than your lease agreement with the owner of the land. It is pathetic. We now, as a County, have an opportunity to say, "We believe in you and we support agriculture. It is up to folks now. You folks go and make it happen." But it starts with this long-term agreement and I think only good will come after this. We are on the amendment. We passed the amendment. We are back to the main motion. It is to approve as amended. The motion to approve C 2018-266, as amended, was then put, and unanimously carried. Council Chair Rapozo: Motion carried. Thank you. There has been a request. Councilmember Kagawa asked that we take up Fire first so we can get them back. I apologize. It is already noon. Then, he would like to take the Parks. If there is no objection, on the motorcycle track agreement as well. Do we have the motorcycle COUNCIL MEETING 30 NOVEMBER 28, 2018 people here? Okay, got it. Alright. Fire. If we take the Fire item, which is the next item anyway. COMMUNICATIONS: C 2018-258 Communication (11/07/2018) from the Fire Chief, transmitting for Council consideration, a proposed amendment to Ordinance No. B-2018-841, as amended, relating to the Operating Budget of the County of Kaua`i, for the Fiscal Year 2018-2019, by revising the amounts estimated in the General Fund, to establish two (2) new Full-Time Ocean Safety Officer II positions with benefits and one (1) new Ocean Safety Officer I (nineteen (19) hours/week) position to provide an acceptable level of lifeguard service at `Anini Beach Park. (Kaua`i Fire Department — Two (2) Full-Time Ocean Safety Officer II and One (1) Ocean Safety Officer I Positions) Council Chair Rapozo, the Presiding Officer, relinquished Chairmanship to Councilmember Kagawa. (Council Chair Rapozo was noted as not present.) Councilmember Kagawa: Can I get a motion to receive? Councilmember Kaneshiro moved to receive C 2018-258 for the record, seconded by Councilmember Brun. Councilmember Kagawa: It has been moved and seconded to receive. I will suspend the rules. Gentlemen. Please introduce yourselves. There being no objections, the rules were suspended. KILIPAKI VAUGHAN, Deputy Fire Chief: Mahalo nui. Aloha awakea. Kilipaki Vaughan, Deputy Fire Chief, Kaua`i Fire Department. TYRUS, SIALE, Prevention and Training Supervisor: Aloha, Council, Tyrus Siale, Ocean Safety Bureau Training Captain. Councilmember Kagawa: Welcome. Mr. Siale: Thank you for having us. Mr. Vaughan: If I can maybe just say a couple of quick things on behalf of Councilmember Yukimura. Thank you for your purpose, process in place, and for the people. Council Chair Rapozo, mahalo nui for your passion for the place as well. Councilmember Kawakami Mayor-elect, good luck. You are an old soul with a future, forward-thinking vision standing on the shoulders of your kupuna. We appreciate that and hopefully, the perspective changes with that height that you get. I want to say mahalo nui to Councilmember Kaneshiro for introducing this by request, this Bill. This is the year, it has already started, Jaws Pe`ahi Challenge has COUNCIL MEETING 31 NOVEMBER 28, 2018 gone on the last two (2) days. The whole season is changing with the surf. Tomorrow, the Eddie will be dedicated at opening ceremonies. This is a need for the Kaua`i Fire Department. This is a need for the Ocean Safety Bureau. This is a need for the community. Since the April floods on the north shore and the continued limited access to the north shore, there has been a lot of diversion of visitor and community to Hanalei, Wanini, and Kauapea. If you just drive anywhere on the north shore now, you just see all of the cars and that just creates a lot more beach attendance, and creates a lot more opportunities for interaction with the ocean. Now, it comes to a point where we have to deliver better service to the Wanini area. We believe we can absorb this cost in this year's budget. If you reflect back to last year's budget, page 137, there were two (2) positions that were reallocated to Parks & Recreation. We were hoping that those would stay with us and we could build on the Roving Patrol side of this. We ask that you allow us to move forward with this opportunity to fund the positions. Councilmember Kagawa: Kilipaki, thank you. I have a quick one before we go on to Members who have questions. Mr. Vaughan: Sure. Councilmember Kagawa: These two (2) full-time positions and one (1) half-time position, is that required to just have one (1) more lifeguard? Mr. Vaughan: No. This would be a patrol for the Wanini area because all our beach attendants is starting to concentrate... Councilmember Kagawa: It says Anini that is why. Mr. Vaughan: Yes, to Wanini, `Anini. Councilmember Kagawa: So it is Anini and north? Mr. Vaughan: And north, yes. Councilmember Kagawa: Alright. Councilmembers, do you have questions? Councilmember Yukimura. This is only first reading. Councilmember Yukimura, I am sorry that you will not be here after that. But anyway, your questions are welcomed just to get the education out there. Councilmember Yukimura: Thank you. What is the total cost of these additional positions including benefits? Mr. Vaughan: We calculate the total cost to be about one hundred eighty-five thousand dollars ($185,000), close to one hundred eighty-six thousand dollars ($186,000). Councilmember Yukimura: One hundred eighty-six thousand dollars ($186,000) for two (2) new lifeguard positions. COUNCIL MEETING 32 NOVEMBER 28, 2018 Mr. Vaughan: Two (2) new lifeguard positions and an on-call Ocean Safety Officer I. Councilmember Kagawa: I think two and a half. That is what it sounds like. Mr. Vaughan: Yes. It is basically two and a half. Councilmember Yukimura: Okay. Mr. Vaughan: It is a nineteen (19) hour position. Councilmember Yukimura: And you are doing it because you have a lot more people at Anini. What about the lifeguard positions where there is no one on the beach in Ha`ena and Ke`e? Mr. Vaughan: Those positions at Ke`e are State-funded through a Memorandum of Understanding (MOU). We are staffing those areas. There are community members that continue to frequent the area. There is no per se visitors the way that it used to be when the Na Pali trail opened, but we continue to staff that area and we have been doing our education there as well. Councilmember Yukimura: Arguably, when things get back to normal, although I know we may be dealing with a new normal, the crunch at Anini should spread out more? Mr. Vaughan: The crunch at Anini has already spread out. If you look at Nukumoi, our tower there has just gone up in attendance. Councilmember Yukimura: You are talking... Mr. Vaughan: There has been a major shift from the north shore down to the south side, but everybody continues to want to visit the north shore. Our beach attendance is up at Hanalei, Wanini (`Anini), Ka`aka`anui, Larson's, as well as Kauapea Beach. Councilmember Yukimura: Therefore, it is not due to the condition of the north shore road, but it is condition to more tourists on the island? Mr. Vaughan: I would not want to say that. A lot of that would be diverted from what would be frequenting the north shore if it was normal. Mr. Siale: Councilmember Yukimura, what chief was saying is there is a lot of overflow that is happening, so it is a big part, that April flood did cause that effect as far as road closure, but we still staff the towers out of Ha`ena and Ke`e. Ke`e is a State-funded tower. We still have the community out there, we still have to be careful for them as well. With that road being closed and being limited, everybody is flowing to Anini. The statistics (stats) show every day since that closure that there is a lot of people on that beach and we get these stats from our COUNCIL MEETING 33 NOVEMBER 28, 2018 roving patrol unit, which is not there every day. Whenever they can get to Anini, they will make that stat and record that, but that is not an every day stat and the outcome is huge. It overflows all into the south and west side and that is why we are asking for those positions. Councilmember Yukimura: Is Ha`ena State-funded also? Is it just Ke`e that is State-funded? Mr. Vaughan: Yes, Ke`e is funded and Ha`ena is county beach. Councilmember Yukimura: I am wondering why we cannot move. I know there are some people there, but in terms of we are not trying for one hundred percent (100%) coverage, it is not something we can do, why can you not move temporarily one (1) position to Anini? Mr. Siale: Well because in our... Councilmember Yukimura: Or even two (2) if you can get the State's consent, because nobody can get to the park right now. Mr. Vaughan: That is another battle with the State as far as reallocating the positions. The positions are dedicated to Ke`e, we try to make the best possible choices between Ha`ena and Ke`e and being able to float, but the reality is that there are not that many more people visiting Wanini and other areas on the north shore that are much more accessible than Ke`e and Ha`ena. Councilmember Yukimura: I am not disputing that. I am just asking why. It seems like the numbers are pretty low compared to what they used to be and why the State could not loan a lifeguard to Anini for a while and also retake the Ha`ena lifeguard to Anini too? Mr. Vaughan: With the State's MOU, that is a separate contract. Councilmember Yukimura: Have you tried? Have you talked to the State? Mr. Vaughan: We have talked to them many times. Councilmember Yukimura: In these particular circumstances? Mr. Vaughan: Not on these particular circumstances. Councilmember Yukimura: Since the road has been closed? Mr. Vaughan: We have talked to them many times during the road closure and if there is a possibility of reallocating, but we continue to staff it because it is a continued threat for the community out there. There are so many COUNCIL MEETING 34 NOVEMBER 28, 2018 other people from the community, residents accessing the area, and so we want to maintain our coverage for both Ha`ena and Ke`e. Councilmember Yukimura: When you come to budget time, the figures are going to be really hard with this next budget, positions are one of the key things that we hesitate to do. It seems to me that, that is the time when Council can look at all the positions and the needs. We know water safety is very important, but we also know efficient uses of resources are something we have to do because we do not have money to cover everything. That is why I am asking the question. Councilmember Kawakami: I frequent the beach a lot and I can tell you if you go down there, you can see the additional surge in visitors at Wanini. It is a reality. I can tell you moving forward I know that what we have been doing is we have been marketing lifeguarded beaches. That is what the visitor industry has been doing. They have been pushing their visitors to go to lifeguarded beaches. That is a reality. With the increase in visitors, it is putting a stress on our famous beaches that our locals like to go to as well. One of the bigger visions is that Wanini is going to be one of those lifeguarded beaches that the visitor industry is going to be promoting to take the stress off of areas like Black Pot, off the stress of areas like Ke`e, which is going to be extremely limited, and all the way out to Nukumoi, which I see all the time. The winter season is here and that beach continues to get an increase of visitors, so my question is to explain the sense of urgency on this initiative; what is the reality that we are faced with? Mr. Siale: Obviously, we get a lot of people getting into trouble and drowning. With Anini being a County park, it calls for having lifeguards there and everything overflows into that area, as of now. Right now would be a good time to go ahead and plan for that, but not taking away why we are asking for that two (2) full-time positions and a part-time position, it is a different park... Councilmember Kawakami: I can help, too, because it was part of an E- mail that came from some of the hoteliers out on the north shore saying, "Our visitors are asking what beaches to go to, they are ending up at Wanini, and we are extremely concerned that there are no lifeguards down there." That is when Chief Westerman and Kalani came to talk about the reality. I was hoping that this bill was going to be introduced before the Thanksgiving Holiday because, like you said, it is already December and we are at the peak of a huge north shore season that is already hitting and so we wanted to get those roving patrols out even before this winter season happening. That is a sense of urgency. I do not want to have to go back and have a conversation with the State because it is not going to happen, that is the reality. It is like talking to a wall. To move lifeguards from Ke`e Beach to somewhere else, there are kids that are swimming out at Ke`e. What message does that send to the residents of Ha`ena and Ke`e? Just because the visitors are not here that that is not an important place to watch over when we have our own children riding their bikes by themselves to that beach. I would not be in favor of that. I think it is extremely important during this north shore season to have lifeguards at Ke`e whether or not there are visitors. That spells out my support for this initiative and moving forward, there is a likelihood that you may see and ask for another tower out there if it is feasible because that is the reality of it. If you want to take pressure off our beaches, COUNCIL MEETING 35 NOVEMBER 28, 2018 we have to be able to spread out and market out other beaches as well. That is the only solution. Thank you. Council Chair Rapozo: Councilmember Chock and then Councilmember Kagawa. Councilmember Chock: I am going to be supporting this on first reading as well. I understand, it is because it is life and safety and we have to take care of that. I think the bigger question that we need to start to ask though is how are we going to continue to fund it? My request is if you have some statistics because I think what will be really telling is how much of it is the tourists and visitors that are frequenting the beaches. Even in the back of our minds here as the people that need to build the income to fund these positions is what that is going to look like if there is a fee. There are places in this State that has to do it in order to take care of these areas and Hanauma Bay is a prime example, but I am just saying that we have to come up with the solutions in order to continue what it is this expansion is. I think any information you can give us to quantify that would be helpful in driving what that solution is. Thank you. Council Chair Rapozo: Councilmember Kagawa. Councilmember Kagawa: Do we have a list of candidates ready to be seriously considered for these jobs? If you are saying that the north shore swell is dangerous and we are going to have the Christmas rush of tourists, and the fastest this bill gets approved is one month from now, maybe one month and a half from now—how fast would we be able to fill those two and one half positions? Do we have a list of people ready? Mr. Vaughan: Thank you for the question. We built this budget from January 1st, about six (6) months worth of time. We think we can get someone hired by the middle of January, hopefully. Councilmember Kagawa: If we approve it, will it be full-time civil service forever? Mr. Vaughan: Yes. Councilmember Kagawa: Is there a process to filter good employees from duds? This is a serious question because we are talking about lifeguards saving lives and I have seen examples of super lifeguards and I have seen examples of duds. Now, I want to make sure that we have a process, because it involves life and safety every day, that we have people concerned about the health and safety of the public rather than condition of restrooms and you folks know what I am talking about. You worry about your job and I need to have assurance that we have a process in place that if we have folks that are not cutting it then we should let them loose because health and safety is too important for us to have no safeguards. Mr. Vaughan: I appreciate the statements and questions. The process is there. Human Resources (HR) governs the civil service process and we COUNCIL MEETING 36 NOVEMBER 28, 2018 believe in that process, many of our lifeguards have cone through that process, so we trust that the process will continue to work. I would like to revisit the fact that the State took away the Tort Liability Act for ocean safety lifeguards and that really puts a lot of pressure on us to perform the job really well to save peoples' lives without any assurances from them to up protection. I beg to venture if someone else would put their lives on the line to help people that they do not even know and do that with a passion and a commitment to instill pride to the island and also instilling life back into death. Councilmember Kagawa: That is the expectation. When you applied for that job, you know what your expectation is and the public should appreciate those who are truly going all out. That is why I can say these things because I do not worry about union endorsements. I say what I feel and have no obligation. Council Chair Rapozo: Councilmember Kawakami. Councilmember Kawakami: I would also like to remind the body and the public at-large to the work of the Kaua`i Lifeguard Association (KLA) because you are asking for the warm bodies, but when you talk about revenue-generation, I believe that the jetski and the two (2) trucks were paid for by KLA. Do you have numbers as to how much revenue KLA has contributed to our Ocean Safety Bureau for these types of endeavors? Mr. Vaughan: Sure. I have KLA guru, Dr. Monty Downs here to help us out. I do not have the numbers right off the bat, but they have been a formidable contributor and donor to the County in providing equipment and a lot of support in-kind to the Kaua`i Fire Department Ocean Safety Bureau. I do not have the firm numbers on me, but I believe everyone knows it is considerable. I believe Dr. Downs can probably present a better case than that. Council Chair Rapozo: This will come up at the Committee and we can vet out the numbers there, because I think it is a very important, in fact, let me just say that their contribution to this County far exceeds the one hundred eighty- five thousand dollars ($185,000) that you will be required to take care of these positions; far exceeds and will continue to do so. Councilmember Kaneshiro. Councilmember Kaneshiro: On your write-up, you mentioned that you will be able to cover this cost within your own budget; where are you folks getting the money from? Mr. Vaughan: We were going to take some money from open positions that are vacant and then try to reallocate some of those salaries there. We believe we can cover it that way. Councilmember Yukimura: Excuse my ignorance, but right now, we do not have any lifeguards at Anini? Mr. Vaughan: We do not have decided lifeguards to Anini. Again the roving patrol comes in and staffs it as possible. Hanalei takes up a lot of COUNCIL MEETING 37 NOVEMBER 28, 2018 the area. We have been floating in between Wanini and Larsen's Beach, all the way to Kalihiwai, as well. Councilmember Yukimura: So the proposal is now to establish a lifeguard station there—is that it? Mr. Vaughan: We would not want to establish a firm station. It would be kind of like a roving patrol, but mostly dedicated to the Wanini area... Councilmember Yukimura: I see, okay. Mr. Vaughan: ...just because of the increase of beach attendance. Councilmember Yukimura: Are you needing a tower there or not? Mr. Vaughan: I believe a tower could be the discussion in the future if this works out, but it is not currently in the discussion. Councilmember Yukimura: Did you have a lifeguard at Black Pot or you did not? Mr. Siale: We did not. Councilmember Yukimura: You did not, so you just had Hanalei Bay covered by Pine trees or something? Mr. Siale: Pine trees and pavilions. Councilmember Yukimura: Okay, thank you. Council Chair Rapozo: Are there any further questions for the Fire Department? If not, thank you very much. Is there anyone in the audience wishing to testify? We will take the proposed draft bill right after this as well. This bill is only to create the positions and not funding at this point. Dr. Downs. DR. MONTY DOWNS, President of the Kaua`i Lifeguards Association: For the record, Monty Downs, President of the Kaua`i Lifeguards Association. To answer the question, "How much money has KLA has donated to the County," in the equipment alone it has been over five hundred thousand dollars ($500,000) and then if you add in Junior Lifeguard support, it comes out to about seven hundred fifty thousand dollars ($750,000). This year it is going to be a special year because the Hawai`i Tourism Authority (HTA) has made a commitment to set aside five hundred thousand dollars ($500,000), giving one hundred twenty-five thousand dollars ($125,000) to each island to put into the Ocean Safety Bureau Services. There are a lot of contingencies for them to make that donation, one of them being that the accepting organization have one hundred twenty-five thousand dollars ($125,000) in their bank account and we were the only ones who had that, "we" being KLA. Therefore, we have been able to get the money and we do not have it yet, but I just sent in a thirty-eight COUNCIL MEETING 38 NOVEMBER 28, 2018 (38) page application that has been filled out and notarized. That money is already spent, if you will, and the two (2) new trucks, two (2) new jetskies with trailers, and two (2) new all-terrain vehicles (ATVs) that are going to be coming to the County. KLA is really happy to be able to support the County and I do not really consider it "KLA"—I consider it "the community" cares enough about ocean safety that they get money to KLA that we can support the County. Regarding Anini itself, it has been pretty clearly laid out what has happened. The tourists do not go to Ha`ena, Ke`e, or Tunnels anymore, so where do they go? A lot of them end up at Hanalei Bay for swimming, but for snorkeling, Anini. It has really picked up a lot there. The south shore has picked up a lot, but not everyone from The Westin Princeville Ocean Resort Villas or the Princeville Resort Kaua`i (previously the St. Regis Princeville) is going to drive to Po`ipu Beach. The Nukumoi tower in Po`ipu has been huge and I have to thank you all for the support that you gave to that in the last year. Councilmember Yukimura, at those hearings you asked, "Could we have the Nukumoi tower without adding personnel," and our answer was "yes." We have been able to stick with that and been able to maintain coverage of all the towers. We did lose a little bit on the ripple effect though was our roving patrol on the north shore. We just have not been able to operate that the way we would like to and we only get to Anini maybe one or two days a week. With these two and a half (2.5) positions, we will be able to get there for, I hope, seven-days-a-week. The "homerun" would be a tower at Anini, five (5) positions, and we are not in a budget position to even ask for that. I hope that is a dream that will come true over the future Mayor's Office. With the two and a half (2.5) positions that I have been lead to understand, and I am not involved with the Ocean Safety Bureau's finances, but it can be funded, as Deputy Chief has said, by taking money from other open positions that we will be able to do a stop-gap thing at `Anini. One person has drowned at `Anini this year and it does not sound like much, but if you all have families that could be...think of one person from your family–it is a lot. With the winter season/holiday season that there is some urgency to it and I would very much hope that you will be able to support these positions. Thank you. Councilmember Yukimura: Dr. Downs, thank you for all your work and support for water safety that has been legendary. Mr. Downs: You are welcome. Councilmember Yukimura: The roving patrol for the north shore must have less activity certainly in the Ha'ena, end of the road, right? Mr. Downs: Yes. Councilmember Yukimura: What has been the difficulty with it? Mr. Downs: Well, just that our men are at the Hanalei pavilion and they cannot get...you are right, Councilmember Yukimura, if you took a satellite picture today of the beaches on Kaua`i, why is there a lifeguard at Ha`ena where there are eight (8) people there and several hundred people at Anini? But we cannot pull the people from Ha`ena Beach Park. That is an additional slap in the face, I think, to the local people who have suffered out there with the flood damage, so it makes sense from one (1) satellite's imagine point of view to pull the tower from COUNCIL MEETING 39 NOVEMBER 28, 2018 there to Anini, but I very much do not feel that we should do that. The roving patrol really did not get out to Ha`ena much when it was fully operational. It maybe got as far as Lumaha`i River Mouth, but mostly it was hanging around Anini, Kalihiwai, between there and Hanalei. The roving patrol never was a key presence in Ha`ena, that was the two (2) towers that we have out there. Councilmember Yukimura: Where is the roving patrol stationed? Mr. Downs: Right now, it is at Hanalei Pavilion. There is not much of a roving patrol going on now. We still have a good southside roving patrol taking place... Councilmember Yukimura: I see, because the stationary, so to speak, demands are so great. Mr. Downs: I am sorry? Councilmember Yukimura: The roving patrol is not roving much because of... Mr. Downs: Because of personnel. Councilmember Yukimura: Oh, because of personnel. Mr. Downs: Because of lack of personnel. Mr. Vaughan: With so much more concentration in Hanalei, Wanini, Kauapea, and Kalihiwai, that is why there is so many more people, so the dedication of the roving patrol back into Hanalei is a key factor to keeping that area safe, but now the exposure comes to Wanini and other areas at a cost. That is why we are here. We want to be able to cover those exposed areas, such as Wanini and let that be able to drift between Wanini up to Kauapea, Kalihiwai, as far as Ka`aka`anui and Larsen's Beach. The way that the coverage has been reorganized was based on the circumstances, we just had to dedicate that many more people to Hanalei and to the southside, but in between, we want to make sure there is coverage. This hot spot, this heat map, is growing at Wanini. Councilmember Yukimura: Thank you. Council Chair Rapozo: Are there further questions? If not, thank you very much. Mr. Downs: Thank you. Council Chair Rapozo: Are there registered speakers? Felicia. FELICIA COWDEN: Felicia Cowden, for the record. I will reserve most of my commentary for when this comes up in a couple weeks, but having been a windsurfer instructor in my early twenties there on that beach, working up and down, COUNCIL MEETING 40 NOVEMBER 28, 2018 like the lifeguard there, and then having had my business active there for eighteen years...I would say for as long as I have been an adult, we have needed a lifeguard tower there through the winter months. Anini Beach is like the Bunny Hill of the north shore and that is where people go who are not good swimmers. Summer time is really easy; winter time, that current in there is very swift and it is and can be quite dangerous and people are sent down there. I, myself, went out to help someone when I was twenty-three years old with an eighteen year old—I was out to sea for five (5) hours, made peace with God before I was rescued there, and when I saw that tourist in trouble, I asked a number of men on that beach to help that person, but nobody went out. I went out, but I should not have gone out–an eighteen year old went out, and we were lucky that we all survived. It has always left an impression on me, but in many, many days it has difficult time there and I support a tower there for the winter months and it can sit empty in the summer. Council Chair Rapozo: Anyone else? Seeing none, I will call the meeting back to order. There being no further testimony, the meeting was called back to order, and proceeded as follows: Council Chair Rapozo: Are there further discussion? This is the Communication and we will take the Bill right afterwards. Again, this is not a money bill; it is to create positions. Are there any further discussion? Councilmember Yukimura. Councilmember Yukimura: It is interesting to hear the dialogue that it is not a money bill, it is just positions because the dialogue changes with budget time, and we have great restraint on positions just because it is an ever incurred occurring cost, and this is what we are committing to in creating the positions. I think it is not a trivial thing that we are doing it, it is one hundred sixty-five thousand dollars ($165,000) or one hundred sixty-nine thousand dollars ($169,000), whatever it is, year after year after year, and I presume that included benefits. Okay. Oh, one hundred eighty-six thousand dollars ($186,000), year-after-year and with raises, it will only increase. Therefore, it is not a small thing. I hear the compelling need, but I just want you to know, that we hear compelling needs for a lot of positions. We just need to be really aware of this. I guess I would have preferred it come up at budget time, but I understand the seasonal pressures that need to be addressed and I do understand the urgency of water safety, which is a matter of life-and-death. I am going to be voting for it just knowing all of these other considerations that we have to be aware of. Council Chair Rapozo: Anyone else? Well, obviously, I will be supporting this. The price tag is...I forget what the number is, but that is for the year. The Fire Department has...right...and it is a future expense, but passing it today will get it in front of the next Council to have that dialogue, gets it in front of the incoming Council to have the discussion whether or not they want to wait for the budget or not. I do not want to prolong...let us get it off the ground, get it to a public hearing, and at the end of the day, I cannot speak for the incoming Council, but we got the majority of them right here. The majority sits on this Council that the Fire Department has to COUNCIL MEETING 41 NOVEMBER 28, 2018 understand that if budgets are tight, then it comes out of the Fire Department budget. It is that simple. You have that money this year and more than likely you will have that lapse next fiscal year, and we have the incoming Mayor sitting right here, too, that has to make all this work. But I am not going to get in the way of this now because I think with what has happened on the north shore and the increase in usage at Anini, we cannot not address that. My approval, again, I cannot obviously speak for the next Council, but it comes with the caveat that if funds are not available, it is going to come out of the Fire Department's budget. So you folks are going to have to tightened up that belt within the department to make sure you get to keep these positions. That is just my really non-binding opinion. This is the Communication, the motion is to receive. The motion to receive C 2018-258 for the record was then put, and unanimously carried. Council Chair Rapozo: Can we take Proposed Draft Bill (No. 2731) real quick and then we will break for lunch? There being no objections, Proposed Draft Bill (No. 2731) was taken out of order. BILLS FOR FIRST READING: Proposed Draft Bill (No. 2731) —A BILL FOR AN ORDINANCE AMENDING ORDINANCE NO. B-2018-841, AS AMENDED, RELATING TO THE OPERATING BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAI`I, FOR THE FISCAL YEAR JULY 1, 2018 THROUGH JUNE 30, 2019, BY REVISING THE AMOUNTS ESTIMATED IN THE GENERAL FUND (Kaua`i Fire Department — Two (2) Full- Time Ocean Safety Officer II and One (1) Ocean Safety Officer I Positions): Councilmember Kaneshiro moved for passage of Proposed Draft Bill (No. 2731) on first reading, that it be ordered to print, that a public hearing thereon be scheduled for December 19, 2018, and referred to the Budget & Finance Committee, seconded by Councilmember Kagawa. Council Chair Rapozo: The public hearing is on December 19, 2018, so you will not see this at a full Council for final approval until mid-January anyway, if all goes well. Is there any 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: Roll call. The motion for adoption of Proposed Draft Bill (No. 2731) on first reading, that it be ordered to print, that a public hearing thereon be scheduled for December 19, 2018, and referred to the Budget & Finance Committee was then put, and carried by the following vote: COUNCIL MEETING 42 NOVEMBER 28, 2018 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: With that, we will take a lunch break and be back at 1:40 p.m. There being no objections, the Council recessed at 12:39 p.m. The meeting was called back to order at 1:40 p.m., and proceeded as follows: (Councilmembers Brun and Kawakami were noted as not present.) Council Chair Rapozo: There was a request made to take the Parks item. Can we have that read for the record? There being no objections, C 2018-252 was taken out of order. C 2018-252 Communication (10/24/2018) from the Director of Parks & Recreation, recommending for Council approval, a License between the County of Kaua`i and Club Moto Kaua`i, a Hawai`i nonprofit corporation, for the Kalepa Motocross Track, Tax Map Key(TMK): (4) 3-009-002:36 (por.), Lihu`e, Kaua`i, Hawai`i, for a twenty (20) year license to develop, construct, use, and maintain a new motocross track. Approval of the License is also requested. • License Councilmember Kagawa moved to receive C 2018-252 for the record, seconded by Councilmember Chock. Councilmember Kagawa: We are planning to approve the forty-year license. Councilmember Yukimura: Is there a new license? Councilmember Kagawa: Yes. There is another item. Councilmember Yukimura: I have not seen it. Council Chair Rapozo: It should be on your agenda. Councilmember Yukimura: Excuse me. Councilmember Kagawa: Legal Document, number 4. COUNCIL MEETING 43 NOVEMBER 28, 2018 Councilmember Yukimura: Is it a license? Councilmember Kagawa: Is it the same thing. Council Chair Rapozo: It is the same, except they changed the time to forty (40). Councilmember Kagawa: Twenty (20) to forty (40), which I requested to give a little bit more longevity and security. Council Chair Rapozo: Let us take care of this item first, because this is just a receipt. This is just to wipe out the last one and we will start over with the new item. Is there anyone in the audience wishing to testify? 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: The motion is to receive the item that was from the last Council Meeting. The motion to receive C 2018-252 for the record was then put, and unanimously carried by (Pursuant to Rule No. 5(b) of the Rules of the Council of the County of Kauai, Councilmembers Brun and Kawakami were noted as silent (not present), but shall be recorded as an affirmative for the motion). Council Chair Rapozo: Can we move to the new document, which is C 2018-268? There being no objections, C 2018-268 was taken out of order. C 2018-268 Communication (11/15/2018) from the Director of Parks & Recreation, recommending for Council approval, a License Agreement between the County of Kaua`i and Club Moto Kaua`i, a Hawai`i nonprofit corporation, for the Kalepa Motocross Track, Tax Map Key (TMK): (4) 3-009-002:36 (por.), Lihu`e, Kaua`i, Hawai`i, for a forty (40) year license agreement to develop, construct, use, and maintain a new motocross track. Approval of the License Agreement is also requested. • License Agreement Councilmember Kagawa moved to approve C 2018-268, seconded by Councilmember Chock. Council Chair Rapozo: We had the discussion at the last Council Meeting and this is the same document except that the time was extended from twenty (20) years to forty (40) years. Is there anyone in the audience wishing to testify? COUNCIL MEETING 44 NOVEMBER 28, 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: Councilmember Kagawa: I do have something to share. Council Chair Rapozo: Okay, go ahead. Councilmember Kagawa: There were questions about an insurance requirement and after consulting with Mauna Kea, the Administration can request insurance at any time. After discussing it also with Mayor-Elect Kawakami, he said that he would be requiring insurance, so basically the provision is in there for the Administration to take care of it and our Mayor-Elect said he is concerned about it and he will be enforcing the language in the agreement and I trust him, so I am going to approve. Council Chair Rapozo: Councilmember Yukimura. Councilmember Yukimura: Did anyone get a copy of the State's agreement on the racetrack in Mana? You did. Do you have a copy of it? What does it say about insurance? Council Chair Rapozo: With that, I will suspend the rules. There being no objections, the rules were suspended. LEONARD A. RAPOZO, JR., Director of Parks & Recreation: For the record, Director of Parks & Recreation. They have the basic terms that we were discussing regarding the general liability of one million dollars ($1,000,000) and two million dollars ($2,000,000) aggregate like we had in our previous document, no different than ours. Councilmember Yukimura: Is there a requirement of insurance in this new document? Mr. Rapozo: No, there is not. I still relied on the advice that we received from the insurance broker as well as our attorneys, that we are adequately covered. As was mentioned by Councilmember Kagawa, in the future the Administration has the latitude to request insurance to be made. Councilmember Yukimura: Would you have objections to putting it in the license itself? Mr. Rapozo: I feel comfortable that the way it is written currently that we can move forward with this agenda item. Councilmember Yukimura: Therefore, you do have objections to putting it... COUNCIL MEETING 45 NOVEMBER 28, 2018 Mr. Rapozo: Yes. Councilmember Yukimura: Okay. That is all I have for Lenny, but I have a question for Mauna Kea. Council Chair Rapozo: Are there any more questions for Lenny? If not, thank you. Mr. Trask. Mr. Trask: Aloha, for the record, Mauna Kea Trask, County Attorney. Councilmember Yukimura: Mauna Kea, for the very reasons that we spoke about earlier this morning, like the purposes of raising money or making improvements to the land, should this not be a lease agreement rather than a license agreement? Mr. Trask: No, I do not think so. I think for those reasons and given the scope and intent of this, the County is not trying to convey an estate in this land. They do not want it to be assignable and they want it to be revocable at-will of the County, so that leans towards a license. Councilmember Yukimura: But we just heard a lot of testimony about why they would have a hard time raising money and they would have a hard time doing improvements without a lease rather than a license. Mr. Trask: I think an agricultural endeavor is entirely different and more complex than a motocross track and so I do not think that it is a fair analogy. Councilmember Yukimura: How is it different? Mr. Trask: Well, the history of Hawai`i being one of boom and bust economy, singular-economy is largely agriculture. There are no coffee plantations, no cotton plantations, no sugar plantations, no pineapple plant plantations, no rice plantations, and Hawaiians do not farm taro nearly as much as they used to. You have to be flexible and try to figure out how to make agriculture work, whereas a motocross track, there have been in the past and the motocross riders that I know are very dedicated to the sport. They do everything they can to participate in it. They are not run by market factors; it is a recreational endeavor, and not a business endeavor. I can go on and on. It is just entirely different. The only difference, of from my understanding, is that usually a license is permission to use less than the entire property, it is a specific portion thereof; however, as you heard, the plan is not done yet for the track. They do not know what it is going to look like, they do not know where it is going to be, and that is why it currently says, "The entire parcel," versus one (1) part of it. I do not think we are there yet. Councilmember Yukimura: That sounds like the agricultural center, they do not yet have... COUNCIL MEETING 46 NOVEMBER 28, 2018 Mr. Trask: Yes, that is why it is a lease. Councilmember Yukimura: That is why a license is better than a lease? Mr. Trask: No, no. Councilmember Yukimura, I suggest you read (Inaudible). Councilmember Yukimura: No, I just want you to tell me what the law is, thank you. Mr. Trask: Okay, I tried and I obviously failed to explain to you the difference between a license and lease, but I believe a license is what is the intended use in this instance. Councilmember Yukimura: Thank you. Council Chair Rapozo: Councilmember Kaneshiro. Councilmember Kaneshiro: Councilmember Yukimura, I had the same concern. I sent the question out of whether it should be a license or a lease and I will leave it to the County Attorney—he said it should be a license in this case and I left it at that. Councilmember Yukimura: That is why I asked for his reasoning. Thank you. Council Chair Rapozo: Are there any more questions for Mauna Kea? Thank you, Mauna Kea. Is there anyone in the audience wishing to testify? Seeing none, I will call the meeting back to order. There being no one present to provide testimony, the meeting was called back to order, and proceeded as follows: Council Chair Rapozo: The motion is to approve. Is there further discussion? Councilmember Yukimura. Councilmember Yukimura: I am not going to be able to vote for this because I think for the purposes that the applicants are applying, they actually need a lease, and also, I do not think it is responsible to leave it to the Mayor whether there is insurance or not. I think the testimony showed that it is possible to get insurance and we are really at-risk to not get insurance and we have seen where the administrators have failed monitor the insurance and have waived our insurance. Maybe this mayor says "yes," but then the next mayor may not, and if we are leaving it up to chance, that is not a responsible way to do things. I am gone, so it does not matter, but I really think the Council...because the Council wants to require insurance because the state requires insurance, one million dollars ($1,000,000) as the Parks & Recreation Director just said that they do. Felicia testified that high-risk sports are able to get insurance and I think we are not doing our fiduciary duty without requiring it in an agreement. COUNCIL MEETING 47 NOVEMBER 28, 2018 Councilmember Chock: I will be supporting this. My only request would be that we receive a copy of the insurance once it is in place. Thank you. Council Chair Rapozo: Is there anyone else? Seeing none. Go ahead. Councilmember Kaneshiro: I had the same concern on insurance also. The lease does specifically say that "licensor reserves the right to add insurance requirements as it deems necessary," and at this time, we have the Administration and whoever they asked saying that the insurance is not required. I think I will leave it up to them to review it and relook at it and tell us whether the insurance is required at a later time, and have them add the insurance at a later time when it is more necessary. I do not know how fast they are going to move on this parcel, but I do believe there should be some general liability insurance on it, but again, I will leave it to the Administration side to decide when or if it would be necessary. Council Chair Rapozo: Councilmember Kagawa. Councilmember Kagawa: I just wanted to reemphasize the fact that Councilmember Kawakami had the same concerns as Councilmember Kaneshiro and Mayor-Elect Kawakami does not strike me as someone that would change his mind on something like this. He felt the same as Councilmember Kaneshiro, he is confident that the language in there is sufficient, and I agree. Thank you. Council Chair Rapozo: Councilmember Yukimura. Councilmember Yukimura: It is not a reflection on Mayor-Elect Kawakami at all. It is about what happens over the years. Courtyard at Waipouli is expiring in August and forty-one (41) families will have to move. We had the first right of refusal on that, but we waived it through the Housing Manager at that time when the offer was made for us to either accept, refuse, or negotiate. No one knew about it, it did not come to the Council, and many of us were working to purchase it not knowing that that provision was waived, and that is the kind of thing that can happen unless it is put in writing when you leave it to people to remember. (Councilmember Brun was noted as present.) Councilmember Yukimura: The new mayor will have so many things to deal with that how is he going to pay attention to every detail. There is no urgency on this matter. I would just recommend that you defer it one (1) more meeting and have them address that issue because this is a high-risk sport and it is to the benefit of the applicants and to anyone who gets hurt that there is some insurance. Council Chair Rapozo: Anyone else? I would hope the applicant would go out and get insurance for their protection, even if they are not doing anything with the land right now. Again, I am on the same position as Councilmember Kaneshiro that we leave it up to the attorneys to determine the necessity. I think this is the first agreement I have seen without a requirement for insurance, but I understand the explanation. My only suggestion for the next Council COUNCIL MEETING 48 NOVEMBER 28, 2018 is that to get some sort of regular updates, it does not have to be on the floor, but at least a quarterly update from the Department of Parks & Recreation to figure out where they are at in the process. At some point, some decisions are going to have to be made, so that would be my suggestion. Councilmember Yukimura. Councilmember Yukimura: This is about best practices and the best practice would be to include it in the agreement and this is for forty (40) years. People who are here now may not be here. It is crazy to try to make it dependent on Council monitoring...I can tell you we are supposed to get an annual energy report and an annual housing report that tells us what they have been doing. We have not had it for many years in either case. Council Chair Rapozo: Any other discussion? If not, the motion is to approve. Let us do a roll call. The motion to approve C 2018-268 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. (*Pursuant to Rule No. 5(b) of the Rules of the Council of the County of Kauai, Councilmember Kawakami was noted as silent (not present), but shall be recorded as an affirmative vote for the motion.) Ms. Fountain-Tanigawa: Six (6) ayes. Council Chair Rapozo: Next item. C 2018-259 Communication (11/07/2018) from the Director of Economic Development, requesting Council approval to receive and expend additional funds in the amount $10,000.00, and to indemnify the State Department of Labor and Industrial Relations (DLIR), to work with the Department of Education (DOE) — Natural Resources Pathway and Future Farmers of America (FFA) programs at Kaua`i, Kapa`a, and Waimea High Schools in providing summer internship programs for students to work on Kaua`i farms, ranches, and agriculture-related businesses: Councilmember Chock moved to approve C 2018-259, seconded by Councilmember Chock. Council Chair Rapozo: Is there any discussion or public testimony? There being no objections, the rules were suspended to take public testimony. COUNCIL MEETING 49 NOVEMBER 28, 2018 There being no one present to provide testimony, the meeting was called back to order, and proceeded as follows: Council Chair Rapozo: Councilmember Yukimura. Councilmember Yukimura: I would like to say some of us were at the presentation that was recently done from students. I think they were from Kapa'a and Kaua`i High Schools and it was really one of the most inspiring presentations to hear the young people so enthusiastic and excited about being on farms and places of agricultural enterprises. It is a really great program and I want to thank George for his nurturing of that program and all of the people who have helped to make that happen. It is really a lot of hope for the future and for the future of agriculture. Council Chair Rapozo: With that, the motion is to approve. The motion to approve C 2018-259 was then put, and unanimously carried (Pursuant to Rule No. 5(b) of the Rules of the Council of the County of Kauai, Councilmember Kawakami was noted as silent (not present), but shall be recorded as an affirmative vote for the motion). Council Chair Rapozo: Next time, please. C 2018-260 Communication (11/14/2018) from the Director of Economic Development, requesting Council approval to receive and expend State funds, in the amount of $49,574.00, and to indemnify the State of Hawaii, Department of Health, for Malama Kaua`i's coordination of activities and develop infrastructure to build community-based food systems as part of the SNAP program: Councilmember Brun moved to approve C 2018-260, seconded by Councilmember Kagawa. Council Chair Rapozo: Is there any discussion or public testimony? Councilmember Yukimura: I have a question. Council Chair Rapozo: George, I will suspend the rules. There being no objections, the rules were suspended. Mr. Costa: Aloha, for the record, George Costa, Director for the Office of Economic Development (OED). This program actually came to us in the last few weeks from the Department of Health. Apparently, they put out a Request for Proposal (RFP). Primarily, this is not so much for SNAP, but more like the program, we did with electronic benefit transfer (EBT) in trying to get fresh produce to the people that can least afford it. This program is to get fresh produce into the schools. It is a farm-to-school program and the only organization that responded to the program was Malama Kaua`i. Somewhere along the line, the Department of Health...part of the process was not done properly so they were in jeopardy of having to start all over again. Like the Department of Labor and the Department of Land and Natural Resources (DLNR), a lot of times when they have State funds that they want to grant to organizations, they come through the Office of COUNCIL MEETING 50 NOVEMBER 28, 2018 the Economic Development and this was one (1) of those cases where the Department of Health reached out to OED, Nalani Brun, in particular, to help get this grant through. It will go to Malama Kaua`i and what they are going to do is hold stakeholder meetings in the communities, trying to connect the farmers with the schools so that they can provide fresh produce to students. Councilmember Yukimura: Sounds like a wonderful program, but it is not really SNAP. Mr. Costa: No, it is not really a SNAP program. (Councilmember Kawakami was noted as present.) Councilmember Yukimura: Because there have been concerns about the SNAP program and the cost of that, at least in its original form, was a lot of money and that is why I asked because I was not clear how it was going to be used in relation to SNAP. Mr. Costa: Right. Councilmember Yukimura: So, it is not? Mr. Costa: It is not, right. It is a totally different program. Council Chair Rapozo: Why would the communication say, "SNAP"? Mr. Costa: I am not too sure. That is how it came from the Department of Health. When I researched right before this meeting, I contacted the Department of Health and Meagan Fox and she confirmed that this is really a separate program, not related to SNAP, but through the Department of Health. Council Chair Rapozo: Is this time-sensitive? I really get concerned with this because of the Sunshine Law. Mr. Costa: Yes. Council Chair Rapozo: If it is not a SNAP program then this is really invalid. We should receive this and the OED can come back with the real language. I just assumed it was part of the SNAP program and anyone reading the agenda would have assumed it was part of the SNAP program. But if it has nothing to do with the SNAP program, then this is not...I do not want to be a stickler, but it is an improper posting. I would suggest that we receive this and repost at the next meeting with the proper language. Mr. Costa: Either that or can we take an intermission and then I will contact Meagan again just to make sure I am clear. COUNCIL MEETING 51 NOVEMBER 28, 2018 Council Chair Rapozo: No, because the six (6) day posting requirement is the issue. It is not like we can amend this because the posting is the issue, not the content. Is it time-sensitive? Mr. Costa: I believe it is, so if I could just step out and get Meagan... Council Chair Rapozo: George, the problem is not about the verbiage, it is the fact that there maybe people out there that have a concern that would have testified on a matter, but they would have not known. That is the entire reason for the six (6) days. Again, I hate to be a little...but this is not like we have a wrong amount, this entire communication is not accurate. You can check with the County Attorney, but I would rather err on the side of caution. If the attorney says that we can move forward...I lust believe that if it had even a remote relationship to the SNAP program, I would feel comfortable, but you are saying it is not, then this is an improper posting. Councilmember Brun. Councilmember Brun: I think what George is asking for is time to make a phone call to make sure he has his facts right. Mr. Costa: Right. Councilmember Brun: And to make sure he had his facts right and that it is not related to the SNAP program. If we can give him that intermission, he is going to make a call, see if it not SNAP, then we receive the agenda time, and the Council can move on. But I think that is what he is asking for, just to make a phone call, so he can see that he has the right information he is giving us. Can we allow him that? Council Chair Rapozo: That is fine. Councilmember Yukimura. Mr. Costa: Thank you. Councilmember Yukimura: But in the event that it is what George says it is, it is not SNAP-related, then could we show our approval of it with the caveat that one will come back in two (2) weeks and we will officially approve it? Council Chair Rapozo: No. It is up to you folks, but I am not supporting that. That would be circumventing the Sunshine Law. Mr. Costa: If I could just take a few minutes to just make sure I have the right information. Council Chair Rapozo: Councilmember Kawakami. Councilmember Kawakami: When you sent out the request for proposals for this grant was there anything related to SNAP? What was the RFP for? COUNCIL MEETING 52 NOVEMBER 28, 2018 Mr. Costa: Actually, we did not do it. It was the Department of Health. They just came to us in the last two (2) weeks to ask us to process the grant for them to get it into the hands of Malama Kaua`i. Similar to what the Department of Agriculture and other State agencies, when they have funds that they want to grant to organizations, they are confident that when they come through the OED, we can administer those funds. That is what the Department of Health asked. I just want to make sure and contact Meagan again that I got the right information with regards to this program. Council Chair Rapozo: Councilmember Chock. Councilmember Chock: I just want to clarify because what I heard you say is that it is a part of SNAP, but it is a different type of program. Mr. Costa: Right. Councilmember Chock: In that sense, it would be okay to move forward on it, and that is what you are trying to validate, right? Mr. Costa: Right. Councilmember Chock: Thank you. Councilmember Yukimura: I am thinking that SNAP may be a bigger definition than EBT, right? Mr. Costa: Right. Councilmember Yukimura: "SNAP" stands for "Supplemental Nutrition Assistance Program." Mr. Costa: Right. Councilmember Yukimura: That may be a broader (inaudible) and the school program may in fact fit within that. Mr. Costa: That is why I mentioned that when we did the EBT, it was basically trying to get nutritionist food in the hands of people that can least afford it. Council Chair Rapozo: Do you have the State's communication? Do you have anything from the State? Mr. Costa: Actually, Nalani received it, but I am here for her today. If you could allow me to just make that quick phone call. Council Chair Rapozo: It is or it is not. It is either a part of it or not. COUNCIL MEETING 53 NOVEMBER 28, 2018 Councilmember Kagawa: I would like to move onto the next item because we have a heavy agenda. Mr. Costa: Okay. Councilmember Kagawa: I do not know why we are discussing this, he asked for a few minutes. Council Chair Rapozo: With that, next item. Ms. Fountain-Tanigawa: Did you want to move C 2018-261 until after the Executive Session? Council Chair Rapozo: Yes. There being no objections, C 2018-262 was taken out of order. C 2018-262 Communication (11/15/2018) from Councilmember Yukimura and Council Chair Rapozo, requesting Council consideration, for the public release of the following County Attorney opinion regarding Affordable Housing Preservation: • County Attorney Opinion dated November 8, 2018 (Tracking No. 18-1258) Councilmember Yukimura moved to approve C 2018-262, seconded by Councilmember Kaneshiro. Council Chair Rapozo: Is there 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: Councilmember Yukimura: For the record, I think we need the County Attorney to say that he does not have any objections. Council Chair Rapozo: County Attorney, do you have any objections? Okay. Let the record reflect he said, "No, he does not have any objections." Any discussion? I believe we need five (5) votes to release a County Attorney's opinion. Roll call. The motion to approve C 2018-262 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, COUNCIL MEETING 54 NOVEMBER 28, 2018 RECUSED & NOT VOTING: None TOTAL — 0. Council Chair Rapozo: Next item, please. C 2018-263 Communication (11/15/2018) from the Director of Economic Development, requesting Council approval to receive and expend State funds, in the amount of $136,000.00, and to indemnify the State of Hawai`i, Department of Agriculture, for additional support funding for`Aina Hookupu 0 Kilauea's completion of the irrigation line from the Kilauea Dam to the Kilauea Community Agricultural Center: Councilmember Kagawa moved to approve C 2018-263, seconded by Councilmember Kaneshiro. Council Chair Rapozo: Is there 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: We had discussion on this, this morning. The motion to approve C 2018-263 was then put, and unanimously carried. Council Chair Rapozo: Motion carried. Next item, please. C 2018-264 Communication (11/16/2018) from Councilmember Yukimura and Council Chair Rapozo, transmitting for Council consideration, a proposed amendment to Ordinance No. B-2018-841, as amended, relating to the Operating Budget of the County of Kauai, for the Fiscal Year July 1, 2018 through June 30, 2019, by revising the amounts estimated in the G.E. Tax Fund, to fund Increased Weekend Bus Service: Councilmember Kagawa moved to receive C 2018-264 for the record, seconded by Councilmember Kaneshiro. Council Chair Rapozo: Is there 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: Councilmember Yukimura. Councilmember Yukimura: I am not sure why we would want to stop this since it was told at the last discussion in July... Councilmember Kaneshiro: We are on the Communication. Councilmember Yukimura: Oh, excuse me. I got it. COUNCIL MEETING 55 NOVEMBER 28, 2018 Council Chair Rapozo: Proposed Draft Bill (No. 2732) will be coming up. Councilmember Yukimura: Okay, thank you. Council Chair Rapozo: Is there any further discussion? Seeing none. The motion to receive C 2018-264 for the record was then put, and unanimously carried. C 2018-265 Communication (11/21/2018) from Council Chair Rapozo, requesting the presence of the Acting County Engineer, to provide a status update on the Lepeuli fencing project: Councilmember Kagawa moved to receive C 2018-265 for the record, seconded by Councilmember Brun. Council Chair Rapozo: With that, I will suspend the rules. Lyle, this is just an update about the fencing project. I know the last communication we had, we were waiting for the DLNR's survey. There being no objections, the rules were suspended. LYLE TABATA, Acting County Engineer: Yes. Council Chair Rapozo: The boundary assignment or whatever it is called. I am assuming that we did get that, right? Mr. Tabata: Yes. Good afternoon, Chair and Members of the County Council. Chair Rapozo and Councilmember Yukimura, if I may, I wanted to applaud you and thank you for your many years of service to our community. Council Chair Rapozo: Thank you. Mr. Tabata: Councilmember Kawakami, I am looking forward to working very closely. Update as you mentioned, yes, we did receive the DLNR shoreline setback determination, finally. Just to give you an idea on the project site; it is on this map. More closely, it will show you that from the shoreline to the far right extending backward to what is now determined to be the conservation line. The proposed fencing will be placed on the County property and extending from the parking lot up to the conservation line. This is just an aerial view of where we expect to install the proposed fence and then the timeline, which is the update. The timeline—on December 28, 2017, the shoreline was certified and approved by the Board of Land and Natural Resources. The boundary request submitted was just recently completed in March, and on May 11, 2018, the shoreline setback application then was submitted to the County Planning Department. In November, we received the land use district boundary determination letter from the State Land Use Commission. Just recently, we submitted our draft Special Management Area (SMA) application for the Planning Department to review. The anticipated activities. By December 4, 2018, the formal application to Planning will be submitted with a fee and we hope by January, we will get a Minor approval from the Planning Department COUNCIL MEETING 56 NOVEMBER 28, 2018 and we can begin construction at the end of January. Part of the SMA permitting process is that the Planning Department will send official letters to the various agencies for their comments on, say Fish and Wildlife and the State Historic Preservation Division (SHPD), NHOs. When we get those back, then they would approve the permit with whatever comments that are brought back. Councilmember Chock: When you talk about the "hearing back from Fish and Wildlife," there are some testimony about... Mr. Tabata: Yes. Councilmember Chock: Will they be addressing that? Mr. Tabata: Yes. So, we have been working in advance with Thomas Kaiakapu and he has given us some insights of what he feels he would respond in writing at the time to us. It end up being a four feet (4") high fence and we would have to paint it brown. He suggested shrubbery on the outer side of the fence so that mainly the albatross is the birds...what do you call that...the birds... Councilmember Chock: Scott, can you put up the map? It looks like the fence is much further even before it starts to go down the hill, right? Mr. Tabata: Yes. Councilmember Chock: Those were the concerns. Mr. Tabata: There is a pine tree over here at the corner and then this is our County right-of-way, and then the easement. There are two (2) routes. Councilmember Chock: Yes. Mr. Tabata: This route has been cleaned by various community groups. The Department of Parks & Recreation was going to do a stewardship agreement with the Kilauea Neighborhood Association. Councilmember Chock: Where we park, is that where those signs were before? Mr. Tabata: Yes. Councilmember Chock: Is the sign still there? Mr. Tabata: I have not been there recently. Councilmember Chock: Okay. Do you know if people are using the right-hand/cleared path now? Mr. Tabata: Yes. COUNCIL MEETING 57 NOVEMBER 28, 2018 Councilmember Chock: That is the path they are using? Mr. Tabata: Yes. I have used it several times. It is very safe now that they have opened it all up. I have gone down the right and come up the left and they are both cleared pretty well. Councilmember Chock: In terms of the conservation line and where people have talked about where the Ala Loa trail is, the fencing is before that? Mr. Tabata: Looking at this, I believe this is that trail in question and our fence would end a little bit up here. Councilmember Chock: Okay, mahalo. Council Chair Rapozo: Is there any other questions? Again, what is the purpose of the fence? Mr. Tabata: To keep the pedestrians and users on the County path. Council Chair Rapozo: But we are only talking about that short portion, right? Mr. Tabata: Yes. I think this is around one hundred fifty feet (150"). Council Chair Rapozo: Councilmember Chock. Councilmember Chock: I think you had seventy-five thousand dollars ($75,000) in the budget for that; are you still on track to completion? Mr. Tabata: That money was used several years ago, so we have the material all purchased and we will use County forces to install when we get approval and the permit is in hand. Councilmember Chock: Do you have a cost analysis for that already? Mr. Tabata: That part was going to be less than five thousand dollars ($5,000) to install. Councilmember Chock: Thank you. Council Chair Rapozo: Are there further questions? If not, thank you very much. Is there anyone in the audience wishing to testify? RICHARD SPACER: Good afternoon, Council Chair and Members of the County Council. Congratulations to those moving on to other things and to those reelected, good to see you all again. The fence issue with Lepeuli, since I have been involved, is now since 2009 and we are still talking about this. Richard Spacer, COUNCIL MEETING 58 NOVEMBER 28, 2018 for the record. Thank you. There is no point in having a good discussion on this today unless we have this conservation line pinned in the ground and we have a nice aerial photograph showing the right-of-way and showing where this boundary is with a surveyors pin. I have asked Mr. Tabata's department when that is going to happen and I did not get a response yet. In fact, he is showing you two (2) different things. He is showing you an aerial photo, which is where the fencing is where they want to put it, which is to the edge of the Ala Loa/disputed roadway. The map that came back from the Land Use Commission with the conservation line drawn on it—those are in two (2) totally separate places. That is the part that has been left out. Everybody here knows the object of dispensing project is to block the Ala Loa trail/disputed road. Fortunately for us, the Land Use Commission drew a boundary line that is very favorable to the public interest and is nowhere near where this Ala Loa meets the County right-of-way. If you take the scale on the map, that Dennis Esaki's company made, and then you take the conservation line and you use that scale on the map and you use the metes and bounds that are on that right-of-way, you will find that this is considerably mauka of the Ala Loa. We have said for years there were two (2) round posts along this right-of-way: one (1) at the corner, which surveyor Alan Hiranaka placed his interpretation of the conservation boundary in 2011, okay. Now, there is a mauka round post that just so happens is about fifty (50) feet mauka of the corner of the fence. For a long time I have asked myself, "Why is that?" Council Chair Rapozo: Mr. Spacer, hang on. Scott, can you put the map up on the screen and give Mr. Spacer a pointer? Mr. Spacer: Thank you. Council Chair Rapozo: I cannot visualize this in my head. Thank you. Mr. Spacer: That is why it would be nice if we had that aerial photo. Here is the Ala Loa. The two (2) black lines are the fencing that they want to do. As you see, the fencing goes to the Ala Loa. The Hiranaka definition of the boundary line is the ironwood tree with the number of the deceased on it, which is right there, and the corner of the fence. Now, what is not on this photo is the conservation boundary line, which is right about here, somewhere. There is a row of ironwood trees there, which in historic times was always used as another boundary between agriculture and conservation because the trees blocked the salt spray and the wind. Very conveniently, we do have that row of ironwood trees there and that is where the Land Use Commission put the conservation boundary. It is up here somewhere. Council Chair Rapozo: (Inaudible). Mr. Tabata: We brought the outdated one. This more accurately depicts the map that we showed earlier. Mr. Spacer: In my opinion, if you were to go out onto the field and take accurate surveying equipment or even a tape measure as we have done, that line will go further to the left towards the parking lot. You can see the parking lot is kind of that rectangular square at the bottom left of the image, but nonetheless, COUNCIL MEETING 59 NOVEMBER 28, 2018 the Ala Loa trail that is in dispute is nowhere near this conservation line. Therefore, the purpose of all of this expenditure of money for all these years that this has been going on will not block the Ala Loa trail if that is indeed what the County and Waioli Corporation want to do. You have spent all of this money to do both sides of that right-of-way, let us not forget on the south side, there is the Waioli remanence and then Patricia (inaudible) right down here somewhere, you are planning to fence there also from the parking lot, but you have to remember that the right-of-way goes over this way. It does not start down here where some community members have very nicely cleaned it up. It starts more here and we know that because we have photos from 2009/2010 when Councilmember Kawahara was there, when Mayor Carvalho was there, when Michael Dahilig was there and when Ian Costa was there—they all made a field trip. They all saw. We have the photos with the "T" post spray-painted orange with the right-of-way going somewhere off of here. Therefore, your fencing can only go on that side from the parking lot to a certain point there, and we still have those photos. There is another ironwood tree, and not the one that has been attempted to be used as the conservation district (CD) line, again, the tree with the number of dead people on it, but there is another smaller tree mauka of that and the right-of- way goes down in the southerly direction mauka of that ironwood tree as well. Unless the boundaries of the County right-of-way has changed since 2009-2010, those are still in place and you will have to make arrangements for that to be opened as well. What are you fencing? You are fencing from here and you are fencing from here, and you still have to keep it open on the southerly side because that is our County right- of-way. Of course, I am going argue that you have to keep the Ala Loa open because it is a State trail that you do not have authority to fence. But even with this map, it does not go near the Ala Loa. What is the point of all of this? Thank you. Council Chair Rapozo: Okay. Thank you. Mr. Spacer: Thank you. Council Chair Rapozo: Next speaker. HOPE KALLAI: Good afternoon, Hope Kallai. Thank you for this opportunity to talk about this fencing project one more time. It has been a long, long road on this. It seems, to me, that the Ala Loa trail issue is pau because the conservation district is mauka of that triple trail junction. Right now, I just want to talk about the birds. The County right-of-way is an albatross runway. They use it for takeoffs. It is one of the most important life—the important critical parts of an albatross, they live at sea, fish, and then they come home and nest. But they cannot take off unless they have loft and they are big, heavy birds. They paddle foot downhill and sometimes they touch two (2) or three (3) times before they can get loft to get off. If you received my testimony, the fence that we as a County are building a fence to replace, is right in the middle of the albatross runway. Vegetating it will complicate the birds takeoff even more. These are migratory birds. They are protected by the Migratory Bird Treaty Act—that is not a State thing, it is a Federal thing. You have to have Federal Fish and Wildlife involvement, and not just Thomas Kaiakapu. These are not just State birds, they are international birds. There is a known colony at Lepeuli, that wildlife biologists documented their presence. That line that we are talking about, the conservation district line, is drawn on a map, but it goes smack COUNCIL MEETING 60 NOVEMBER 28, 2018 dab right through their nesting area, and that is what conservation district is supposed to protect, the boundary between precious resources that have conservation value. So where these birds are nesting is really critical and we, as a County, do not want to be responsible for the federal fines if these birds are taken. "Taken" is just if they cannot get out of this runway and they pace back and forth along the fence, that is legally a take. It is a ten thousand dollar ($10,000) fine. We, as a County, do not want to bear that and we need the input from Federal Fish and Wildlife biologists on the construction of this fence. I missed the first part. Is it chain-linked? I think it was planned to be a chain-linked fence. It is not a "predator-proof' fence. If these birds need anything, they need a predator-proof fence with small mesh at the bottom so dogs and cats cannot get it. If we would have had a biologist involved in this fence decision, that would have been the first thing, the first criteria. I think we are not adequately considering these birds in this fence project and we need the input from the Federal Fish and Wildlife Migratory Specialists in the design of this fence. Thank you. Council Chair Rapozo: Anyone else? If not, I will call the meeting back to order. There being no further testimony, the meeting was called back to order, and proceeded as follows: Council Chair Rapozo: Is there any further discussion? Councilmember Kagawa. Councilmember Kagawa: I think Hope made a great point. I think we have no expertise in doing fencing to protect the birds. I think the expertise is at the Federal-level and State-level with regards to wildlife and how to best preserve that. It seems difficult to comprehend that they only seem to care about shutting down football games. There are tons of workers in Hanapepe that are dedicated to the Newell Shearwater. When it comes to things like the albatross and everything else, there is none. Only to shut down football games, they throw their whole team at them. There is a big office in Hanapepe. There are a lot of workers right in Hanapepe Town. I do not know what I am talking about? Council Chair Rapozo: Okay, that is enough. Councilmember Kagawa: Maybe you do not know what you are talking about. Council Chair Rapozo: Councilmember Kagawa, finish up. Councilmember Kagawa: For me, I think we have to get a grip on taking care of wildlife the right way. I agree with Hope, though. I do not think the County should be doing things that perhaps we are going to have to take down and re-fix. Thank you. Council Chair Rapozo: Anyone else? I think and I am hoping that the SMA application process is going to go through all of that and I think...I do not COUNCIL MEETING 61 NOVEMBER 28, 2018 know if you understood what Councilmember Kagawa was trying to say. He was basically agreeing that we have to take care not just the Shearwaters, but the albatross as well. The fact that the emphasis on the Shearwaters is enough to shut down a football game, but yet, no one is paying attention to the albatross out there at Lepeuli and their habitat. That is what he was saying. I think you misunderstood what he was trying to say. I think he was agreeing with you. At the end of the day, the SMA process, as Lyle said, and I am hoping that, in fact, that is what is going to happen, that the agencies that regulate or oversee these types of activities will chime in. We saw videos here. We saw videos that...I do not know, have to be a year or so or longer of the albatross like, they call it a runway. We saw it right in the video that they actually use that area to take off. That is with Fish and Wildlife and they will chime in and tell us what we have to do. I do not know about a "predator-proof' fence because the predator can still come around. It is not like you are enclosing an area. But again, Fish and Wildlife and the other agencies will chime in and hopefully make sure that we do everything the right way. With that, the motion is to receive The motion to receive 2018-265 for the record was then put, and unanimously carried. Council Chair Rapozo: Motion carried. Next item, please. C 2018-267 Communication (11/02/2018) from the Fire Chief, recommending Council approval to enter into a Memorandum of Agreement (MOA) with the University of Hawai`i (UH), through Kapi`olani Community College, and to indemnify the UH and their employees and agents, for the Emergency Medical Technician Training Course education program ("EMT Course") attended by eligible participating employees of the Kaua`i Fire Department. • Memorandum of Agreement By and Between the University of Hawai`i and the Kauai Fire Department, County of Kaua`i Councilmember Chock moved to approve C 2018-267, seconded by Councilmember Yukimura. Council Chair Rapozo: Is there any discussion or public testimony? Go ahead. Councilmember Kaneshiro: I just have a quick question on the program. Council Chair Rapozo: Okay. We will suspend the rules. There being no objections, the rules were suspended. Councilmember Kaneshiro: Is this program on Kaua`i or Oahu? Mr. Vaughan: Thank you for the question. Councilmember Kaneshiro: It says "KCC," but I do not know if they are talking about "Kaua`i Community College" or "Kapi`olani Community College." COUNCIL MEETING 62 NOVEMBER 28, 2018 Mr. Vaughan: Sure. Kilipaki Vaughn, Deputy Fire Chief, for the record. Thank you for the question. The State of Hawai`i dispenses Emergency Medical Service (EMS) education through the University of Hawai`i (UH) system. It is really governed in the Kapi`olani Community College system, but it also filters down through the Kaua`i Community College. Our instructor/provider is housed at Kaua`i Community College and she dispenses the education right here at our training center. Councilmember Kaneshiro: Okay. Thank you. Mr. Vaughan: Okay. Council Chair Rapozo: This course, the County pays for—the way I am reading this, it says, because I do not remember seeing this or maybe it is in the budget. The Kaua`i Fire Department shall pay the University a total of eleven thousand two hundred eighty dollars ($11,280), one thousand one hundred dollars ($1,100) per student. Does the Fire Department pay for these firefighters to get this training? Mr. Vaughan: Yes. Every year, we have been training our newest firefighter recruit classes through Emergency Medical Technician (EMT). It costs about one thousand one hundred twenty-eight thousand dollars ($1,128) per student. We get about ten (10) students every year for every recruit class based on the size... Council Chair Rapozo: Is this part of the recruit training? Mr. Vaughan: This is part of the recruit training. Council Chair Rapozo: Okay. I got it. Mr. Vaughan: It is just one of those logistical things for the hold harmless/indemnification. Council Chair Rapozo: Okay. Are there any other questions for Kilipaki? If not, thank you. Is there any public testimony? Seeing none, I will call the meeting back to order. There being no one present to provide testimony, the meeting was called back to order, and proceeded as follows: Council Chair Rapozo: The motion is to approve. Is there any further discussion? Go ahead, Councilmember Yukimura. Councilmember Yukimura: I just want to say that I think a huge percentage of the calls are emergency medical calls, and so to have this training is just very, very important. Council Chair Rapozo: Is there any other discussion? COUNCIL MEETING 63 NOVEMBER 28, 2018 The motion to approve C 2018-267 was then put, and unanimously carried. Council Chair Rapozo: Motion carried. Next item, please. CLAIMS: C 2018-269 Communication (11/02/2018) from the County Clerk, transmitting a claim filed against the County of Kaua`i by Fredulin Casticimo, for damage to his vehicle, pursuant to Section 23.06, Charter of the County of Kauai. C 2018-270 Communication (11/13/2018) from the County Clerk, transmitting a claim filed against the County of Kaua`i by Franklin Dureg, for damage to his vehicle, pursuant to Section 23.06, Charter of the County of Kauai. Councilmember Yukimura moved to refer C 2018-269 and C 2018-270 to the Office of the County Attorney for disposition and/or report back to the Council, seconded by Councilmember Kagawa. Council Chair Rapozo: Thank you. Is there any public testimony or discussion? 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 refer C 2018-269 and C 2018-270 to the Office of the County Attorney for disposition and/or report back to the Council was then put, and unanimously carried. Council Chair Rapozo: Motion carried. Next item, please. COMMITTEE REPORTS: PUBLIC WORKS / PARKS & RECREATION COMMITTEE: A report (No. CR-PWPR 2018-12) submitted by the Public Works / Parks & Recreation Committee, recommending that the following be Approved on second and final reading: "Bill No. 2710, Draft 2 — A BILL FOR AN ORDINANCE AMENDING CHAPTER 12, ARTICLE 6, KAUAI COUNTY CODE 1987, AS AMENDED, RELATING TO THE ENERGY CODE," A report (No. CR-PWPR 2018-13) submitted by the Public Works / Parks & Recreation Committee, recommending that the following be Approved on second and final reading: COUNCIL MEETING 64 NOVEMBER 28, 2018 "Bill No. 2724 — A BILL FOR AN ORDINANCE AMENDING CHAPTER 15, ARTICLE 4, KAUAI COUNTY CODE 1987, AS AMENDED, RELATING TO OUTDOOR SIGNS," Councilmember Chock moved for approval of the reports, seconded by Councilmember Brun. Council Chair Rapozo: Is there 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 to approve the reports was then put, and unanimously carried. Council Chair Rapozo: Motion carried. Next item, please. COMMUNITY ASSISTANCE & VETERANS ASSISTANCE COMMITTEE: A report (No. CR-CAVS 2018-02) submitted by the Community Assistance & Veterans Assistance Committee, recommending that the following be Received for the Record on second and final reading: "Bill No. 2725 — A BILL FOR AN ORDINANCE AMENDING CHAPTER 7A, KAUAI COUNTY CODE 1987, AS AMENDED, RELATING TO AFFORDABLE HOUSING PRESERVATION," Councilmember Chock moved for approval of the report, seconded by Councilmember Brun. Council Chair Rapozo: Thank you. Is there 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 to approve the report was then put, and unanimously carried. Council Chair Rapozo: Motion carried. Next item, please. PLANNING COMMITTEE: A report (No. CR-PL 2018-11) submitted by the Planning Committee, recommending that the following be Received for the Record: COUNCIL MEETING 65 NOVEMBER 28, 2018 "PL 2018-05 Communication (11/05/2018) from Committee Vice Chair Yukimura, requesting the presence of the Planning Director, to participate in a briefing on Important Agricultural Lands (IAL) that will provide the Planning Committee with an enhanced understanding of the intention behind, and process of, identifying IAL as mandated by the Hawai`i State Constitution, Article 11, Section 3, given by the following panelists: • Kathy K. Sokugawa, Acting Planning Director, City and County of Honolulu (or designee); • Leo Asuncion, Director of the State Office of Planning (or designee); • Scott Enright, Chair of the Department of Agriculture, State of Hawai`i (or designee); and • Daniel Orodenker, Executive Director of the State Land Use Commission (or designee)," Councilmember Yukimura moved for approval of the report, seconded by Councilmember Kaneshiro. Council Chair Rapozo: Thank you. Is there 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 to approve the report was then put, and unanimously carried. Council Chair Rapozo: Next item. BUDGET & FINANCE COMMITTEE: A report (No. CR-BF 2018-33) submitted by the Budget & Finance Committee, recommending that the following be Approved on second and final reading: "Bill No. 2723 — A BILL FOR AN ORDINANCE TO AMEND SECTION 5A-1.1 OF THE KAUAI COUNTY CODE 1987, AS AMENDED, RELATING TO REAL PROPERTY TAX," Councilmember Chock moved for approval of the report, seconded by Councilmember Yukimura. Council Chair Rapozo: Thank you. Is there any discussion or public testimony? There being no objections, the rules were suspended to take public testimony. • COUNCIL MEETING 66 NOVEMBER 28, 2018 • There being no one present to provide testimony, the meeting was called back to order, and proceeded as follows: The motion to approve the report was then put, and unanimously carried. Council Chair Rapozo: Motion carried. Next item, please. RESOLUTION: Resolution No. 2013-38 — RESOLUTION SUPPORTING KAUAI'S FISHERMEN, OCEAN GATHERERS, AND RECREATIONAL OCEAN USERS: Councilmember Kagawa moved to receive Resolution No. 2013-38 for the record, seconded by Councilmember Chock. Council Chair Rapozo: Is there any discussion or public testimony? • Go ahead, Councilmember Kagawa. Councilmember Kagawa: This was back when we had problems with NOAA, local fishermen, and recreational ocean users that were concerned about some of these decisions by NOAA on Kaua`i as it affects their lifestyle and their • employment. We have thankfully, have not heard too much negativity lately. We are just cleaning up the agenda since it has not come up for a while, and should it come up with the next Council, they can draft a new resolution. Thank you, Council Chair Rapozo. Council Chair Rapozo: Thank you. With that, the motion is to receive. Roll call. The motion to receive Resolution No. 2013-38 for the record was then put, and carried by the following vote: FOR RECEIPT: Brun, Chock, Kagawa, Kaneshiro, Kawakami, Yukimura, Rapozo TOTAL — 7, AGAINST RECEIPT: 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, please. Proposed Draft Bill (No. 2732) —A BILL FOR AN ORDINANCE AMENDING ORDINANCE NO. B-2018-841, AS AMENDED, RELATING TO THE OPERATING BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII, FOR THE FISCAL YEAR JULY 1, 2018 THROUGH JUNE 30, 2019, BY REVISING THE AMOUNTS ESTIMATED IN THE G.E. TAX FUND (Increased Weekend Bus Service — $475,000.00): Councilmember Yukimura moved for passage of Proposed Draft Bill (No. 2732) on first reading, that it be ordered to print, that a public hearing thereon be scheduled for December 19, 2018, and referred to the Budget & Finance COUNCIL MEETING 67 NOVEMBER 28, 2018 Committee, seconded by Councilmember Chock. Council Chair Rapozo: Thank you. Is there any discussion or public testimony? Councilmember Yukimura: Council Chair Rapozo. Council Chair Rapozo: Go ahead. Councilmember Yukimura: If I may. I really want to acknowledge the Transportation Agency because understanding the great need for expanded weekend service, they have found some ways add some weekend runs that has made a huge difference in people's lives, and the feedback has been tremendous. The value of those runs have been limited; however, because the mainline is every two (2) hours. As you recall, a run-cutting study was going to be done first and was going to be finished by spring of this year and then later by September of this year. This Council talked about then looking at what reserves came up through the CAFR and how we might put funding in it. Come to find out, and we can ask Transportation to come up, but the run-cutting, I do not think has been started and because there is a twelve-week lag...we need to post schedules twelve-weeks before the new schedule starts. In order for full expanded weekend service to happen in April, the schedule will have to be posted in February. So not knowing when the run-cutting will be done and assuming that it is not going to be just dependent on if we find enough money for run-cutting, but recognizing the huge importance not only to workers, but to employers of having this weekend service, I have introduced this Bill. It is only for first reading. It will, as the motion said, go public hearing on December 19th and then will be taken up in January, which will be only a few weeks before the schedule if we are going to implement full weekend service by April would be done. So that is my reason for proposing this Bill and we should know soon, and I see Ken here in terms of the CAFR and moneys for that need. But there should be money to replenish the Road Fund that we are proposing to take from or to get it from through run-cutting services if the run-cutting is done by then. But it is really crucial. I rode the bus at 6:20 in the morning from here to Hanalei to be at the canoe races with my bike, because parking was going to be an issue, and the bus had almost as many people standing as sitting. These employees, many of them live in Lihu`e Court and they work in the resorts at Princeville. They start at 9:00 a.m., but because there is no 7:30 a.m. bus, they are having to take the 6:20 a.m. bus and it there is just a lot of benefit that we could bring to the bus riders and to the employers, because I also speak to my employers who say it is amazing how many of their workers use the bus to get to and from work. That would be the reason and the next Council would make the final decision. But this Bill would put it in place so that a timely decision could be made. Council Chair Rapozo: Thank you. Anyone else? Councilmember Yukimura: Can we... Council Chair Rapozo: With that, the motion is to approve on first reading. Go ahead. COUNCIL MEETING 68 NOVEMBER 28, 2018 Councilmember Kaneshiro: I think this is the third time we have seen this. I think we have seen it in the budget. We have also seen a bill almost exactly like this and I will not be voting for it on first reading. I think we got the message from the Administration at other times that they are not ready to do this. I see that the plan is to repay this money from the General Fund overruns next year, which I do not think is really how it should be. I think this is Transportation money. It is money that would be coming from the General Excise Tax (GET). I think the GET money should stay there and not use General Fund money to be put back into this account to replenish for this amount. I would rather want to hear it come from the Administration and say...they already admitted that they did more routes without even having to add money. I would like it to come from the Administration and say, "We are ready to add this service, we have looked at all our efficiencies, and this is what we are asking for." I think that is what we have asked for every time because we have been trying to follow that Short-Term Transit Plan, which looks at efficiencies first. I would still like to stick it that plan and have the Administration come and tell us when they are ready to do any changes. Councilmember Yukimura: Council Chair Rapozo. Council Chair Rapozo: Go ahead. Councilmember Yukimura: Just one correction. This comes from the GET fund..the Bill that is being proposed is from the GET fund. Councilmember Kaneshiro: It says you would be replenishing with Unassigned Fund Balance or savings from run-cutting. Councilmember Yukimura: No, that is a way you can if you want to, and I am doing it based on the conversation in July where Council Chair Rapozo and others said that by the end of the year, we would have the Comprehensive Annual Financial Report (CAFR) so we would know whether there is money. I think it was also said on the floor that there is money. Perhaps we could have the Transportation Agency come up. Council Chair Rapozo: I do not think we need them today. Councilmember Yukimura: How do you know that they do not want this? Council Chair Rapozo: I guess for me, that can be done at the Committee. That really could. Let them come up at the Committee and express...I have heard enough over of the last...I do not know how many years...a year or so. Councilmember Yukimura: So that people will vote for it to get to public hearing and Committee? Council Chair Rapozo: Yes. I am going to support it to the public hearing. Councilmember Kawakami. COUNCIL MEETING 69 NOVEMBER 28, 2018 Councilmember Kawakami: Thank you, Council Chair Rapozo. I know the Transportation Agency is not ready for it because I have talked to them about it. This is the same runaround that we have been through and the same exercise. We are trying to throw money at something to fix it, but they are not ready to implement it yet. So I appreciate...and I do know that we need increased services on weekends, but they are not ready for it. If you want to call them up, call them to the hot seat and hear it straight from the "horse's mouth,"we can hear it straight from the "horse's mouth" that they are not ready for it. Thank you, Council Chair Rapozo. Councilmember Yukimura: That is why I do not want to have her up because it is just not fair for her. I basically said I would support it to get it to the next level and let the next Council figure it out. If you have to call her up and she is going come up and say that she is not ready, then I am not going to support it, so you make your call. I do not want to see her in a position where she is...I do have a heart, believe it or not. Councilmember Kawakami: Council Chair Rapozo. Council Chair Rapozo: Go ahead. Councilmember Kawakami: I can tell you moving forward as we transition over, transportation is going to be given the attention that it needs. It is going to be a top priority to address traffic and so you have a commitment that we are going to look at increasing services. We can throw money at it now. It is going to end up there. We will deal with it. But I am asking you to allow this Administration to go through the process and just to realize that they are doing their job and they are not ready for it. Thank you, Council Chair Rapozo. Council Chair Rapozo: Okay. I should have took the vote when I called for it because I am now starting to change my mind. Anyone else? Is there any more discussion? Councilmember Brun, I am sorry. Councilmember Brun: I was just going to say that there is no sense of bringing Celia up. She is going to get up here and get crucified and try to get her mind change. I think we heard her thoughts on it already about twenty (20) times. That is all and you already addressed that. Council Chair Rapozo: Anyone else in the audience wishing to testify? 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: Councilmember Yukimura. Councilmember Yukimura: I think the question is not whether they are ready for it right now, but whether there is a really great need for it and also whether COUNCIL MEETING 70 NOVEMBER 28, 2018 with the money, they could actually provide weekend service because this run- cutting, if it is just to save money and you heard the Mayor-to-be say we are going put money into it, so to have it there and to be able to provide the service as quickly as possible would seem to be everyone's desire and the fact that the staff already is on their own looking for money, and looking for ways to do it is evidence that they are responding to the need. That is why it was so important to put this Bill in place. You can deny it on second and final reading, but at least let it have it set up so that if they are ready, they can go for it. They already have done it to a certain extent, but they do not have any more money. They have done to the extent that they have the moneys. I think that money is the lack. Council Chair Rapozo: It is a very interesting scenario, one that I have never, ever had a...seriously, because we have never or I have never sat on a Council with the next Mayor sitting right next to me and telling me that we are not ready. Every other Mayor has come from outside and never in my life have I had a Mayor come from the Council. I am sitting here listening to Councilmember Yukimura who made a very good argument to me a week or so ago, in fact, enough that I co-introduced this and the Mayor is right here. The Mayor is telling me, "We are not ready." So it is kind of like an interesting scenario, but a quite telling scenario. This is the person who has got to make the decision and he just told us, "no." So anyway, kind of interesting. Councilmember Kawakami. Councilmember Kawakami: Thank you. I do appreciate the sentiment. But I do want to say that we want to be fiscally responsible and our Agency has been fiscally responsible. Also, the bigger thing that we do not want to do, Council Chair Rapozo, is we do not want to instill false hope. We do not want to tell our constituents that, "Hey, we are going to throw money at it, expect new routes to be coming online immediately," and putting our Administration under the pressure of something that they may not be able to achieve on that timeline. So in discussion with the Agency, I do not want to bring them up here and have them go through a line of questions and put them on the spot. I am here to tell you folks that we are committed to increasing routes, but let them work through what they have to work through. There are a number of things in-house that they need to line up before they deploy new routes. That is all I am trying to say, Council Chair Rapozo. Thank you. Council Chair Rapozo: Councilmember Kaneshiro. Councilmember Kaneshiro: I would be more willing to support it if it came from the Administration. I think we would get a better sense of...if I was the Administration, I would propose it like this: we are ready to increase our bus services, we have certain roads on the list that we are trying to do, but we are delayed on some. So we have some money to do this and this is our priority right now. I think it would pass in no time, but it is not coming from the Administration. They are not ready for it and I do not see us putting money in Transportation for a future date when that money can be used for roads. So, that is the way my thinking is. Council Chair Rapozo: Councilmember Yukimura. COUNCIL MEETING 71 NOVEMBER 28, 2018 Councilmember Yukimura: I just want to say, talking about being fiscally responsible, we have twelve million five hundred thousand dollars ($12,500,000) in GET moneys and in the budget, only one hundred forty thousand dollars ($140,000) was granted for expansion of the bus. If this is a priority, then yes, I am surprised that the Mayor is not wanting to put it in or that the Council wants to say, "This is our priority and here is the money." But whatever it is, that is what it is. I guess by doing this, I am saying this is an urgent need and we need to get it done. Council Chair Rapozo: Is there any other discussion? Councilmember Brun. Okay. Roll call. The motion for passage of Proposed Draft Bill (No. 2732) on first reading, as amended, that it be ordered to print, that a public hearing thereon be scheduled for December 19, 2018, and referred to the Budget & Finance Committee was then put, and failed by the following vote: FOR PASSAGE: Yukimura TOTAL — 1, AGAINST PASSAGE: Brun, Chock, Kagawa, Kaneshiro, Kawakami, Rapozo TOTAL — 6, EXCUSED & NOT VOTING: None TOTAL — 0, RECUSED & NOT VOTING: None TOTAL— 0. Councilmember Kagawa moved to receive Proposed Draft Bill (No. 2732) for the record, seconded by Councilmember Kaneshiro, and unanimously carried. Council Chair Rapozo: The motion carried. Next item. BILLS FOR SECOND READING: Bill No. 2710, Draft 2 — A BILL FOR AN ORDINANCE AMENDING CHAPTER 12, ARTICLE 6, KAUAI COUNTY CODE 1987, AS AMENDED, RELATING TO THE ENERGY CODE: Councilmember Kagawa moved to approve Bill No. 2710, Draft 2, on second and final reading, and that it be transmitted to the Mayor for his approval, seconded by Councilmember Kaneshiro. Council Chair Rapozo: Is there any discussion or public testimony? Councilmember Kaneshiro moved to amend Bill No. 2710, Draft 2, as circulated, and as shown in the Floor Amendment, which is attached hereto as Attachment 2, seconded by Councilmember Kagawa. Council Chair Rapozo: Thank you. Councilmember Kaneshiro: My amendment is on behalf of the Chair. Councilmember Kagawa: Again, we left in these amendments as requested by the Contractor's Association of Kaua`i (CAK). CAK actually got other companies, even in Honolulu, really appreciating the work that the contractors have done on Kaua`i in trying to put in these words like "may" and the reason why we want COUNCIL MEETING 72 NOVEMBER 28, 2018 to continue leaving it in rather than taking it out, as recommended by Mr. Haigh, was that they fear that if we take the section out, the State will kick it back in in its entirety and we have seen that shady opinion from the State Controller's Office, which basically when we asked them about removing sections and what were the consequences? Their response was to look at the Hawai`i Revised Statutes (HRS), certain sections, and have Mauna Kea Rule on it. To me, that was a really poor answer to a really simple question that we asked. We merely asked, "If we take a section out, what happens?" They could not answer that. So the Contractor's Association felt like it is safer that even though we hear Mr. Haigh's request, that it is not normal practice in the Code to leave a "may" and they requested that we leave it in, and I am going to support that. Now, we will just let the votes fall how they may. We also added in language that will come in Councilmember Yukimura's amendment where we added in the language that Howard Wiig wanted to be added. The only thing is again, we put it as a "may." Whole house fans, according to the Contractor's Association, one (1) fan will cost five hundred dollars ($500) to one thousand five hundred dollars ($1,500), not including installation costs. Again, we are leaving it as a "may" just because of again, the fear that the contractors have, which they have way more knowledge than us sitting here. They are worried about the price impact of this Energy Code on our housing. We are already struggling with housing costs and families being able to afford to buy and build a house. We are going to put in these new energy mandates and just say, "Oh, it is going to cost one thousand dollars ($1,000)." If you look already, one of these fans is at least five hundred dollars ($500). Again, let us just vote it up or down. I trust the Contractor's Association. If you trust the Building Division, then you vote against my amendment. Council Chair Rapozo: Okay. Is there any discussion on the amendment? Councilmember Chock. Councilmember Chock: Just for clarification, trying to refresh our memory. When Doug came up and spoke to this, I think what I heard him say and I just want to clarify, was that if we go with the "may" then there is no use us moving it forward. I just wanted to get a sense of what the Contractor's response to that was. Do they feel the same way? Is it still worth moving this forward? (Council Chair Rapozo, the presiding officer, relinquished Chairmanship to Councilmember Kagawa.) Councilmember Kagawa: They disagree with Doug, so we are stuck. Don Lutao, the former Code Enforcement Supervisor, sits on the Contractor's Association Advisory Board that has been working with me on this and they disagree. I told them, they watched the meeting from the previous Committee, and they referred to the language that we got from the State Controller's Office, which was written to say that Mauna Kea should rule on it and he should read HRS whatever, when it was a simple question about what happens if we take out certain sections of this Code that we were uncomfortable with and what would happen? They could not answer that. The Contractor's Association feels like leaving "may" gives people the options. They like the recommendations by Mr. Wiig by the State Building Council. They really do. What they are afraid of is the cost impact of having it as "shall." So again, it is a "shall" versus "may." All of you know that a "may" gives latitude and COUNCIL MEETING 73 NOVEMBER 28, 2018 flexibility to individual homeowners and business owners. It is basically that. If you agree with the Building Division side or you agree with the Contractor's side. At some point, we have to choose because there is no agreement between the two. Go ahead. (Councilmember Kagawa returned Chairmanship duties to Council Chair Rapozo.) Councilmember Yukimura: I think the contractors may not be looking at the long-term picture because if it is savings you want, the savings are tremendous with these energy improvements in terms of operations of the home. I think for the first year, there is a net annual cash flow savings of seven hundred dollars ($700) per family. I know there is the upfront cost, but the banks and those who finance should know that this cost, which is going to enable people to pay their mortgage, is actually a benefit to everyone, not to mention, the larger issue of climate change and the calculations show that statewide annual savings—oh, this is savings...I do not know where the greenhouse gas...but you can see from the savings alone in 2016, so that was assuming the first year, I think...oh, here we go, megawatt hours per year would be twelve million (12,000,000) megawatts and a savings of four million dollars ($4,000,000) per year. By 2026, that is a total of three hundred thirty-seven million dollars ($337,000,000) in money that can go into the economy, not to mention one million (1,000,000) megawatt hours per year of energy savings. Council Chair Rapozo: Is that for Kaua`i? Councilmember Yukimura: No, this is statewide, annually. But there is individual savings as well. It is a win-win in terms of you are not just saving energy, you are saving money. So if we go business as usual, people are going to be paying more. Council Chair Rapozo: Well, it will be their choice. Councilmember Yukimura: Well, no. Many people do not know that they have this choice and then there is a question about if it is our goal to save energy and money, then we need to pass this or all of these savings to the consumer, homeowner, and to the community are not going to be there. Councilmember Kagawa: Again, you sound in agreement with the Building Division, I listened to both sides, and I agree with the Contractors Association and their local contractors. Council Chair Rapozo: Let us see if anyone in the audience wishes to testify? Then, we will get through this amendment. Anyone in the audience wishing to testify? 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 74 NOVEMBER 28, 2018 Council Chair Rapozo: Okay. The motion it to amend as circulated. The motion to amend Bill No. 2710, Draft 2, as circulated, and as shown in the Floor Amendment, which is attached hereto as Attachment 2 was then put, and carried by a vote of 6:1:0 (Councilmember Yukimura voting no). Council Chair Rapozo: Okay. The amendment passes. We are back to the main motion. Is there another amendment? Councilmember Kaneshiro moved to amend Bill No. 2710, Draft 2, as circulated, and as shown in the Floor Amendment, which is attached hereto as Attachment 3, seconded by Councilmember Kagawa. Councilmember Kaneshiro: By request. Councilmember Yukimura: Who is requesting this? Councilmember Kaneshiro: This is from the Building Division. Councilmember Kagawa: Can I say something? Council Chair Rapozo: Go ahead. Councilmember Kagawa: The Contractor's Association approved of this amendment. Council Chair Rapozo: Is there any further discussion? Anyone in the audience wishing to testify? 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: Seeing none, so this is the amendment relating to the split air conditioner system. The motion is to amend as circulated. The motion to amend Bill No. 2710, Draft 2, as circulated, and as shown in the Floor Amendment, which is attached hereto as Attachment 3 was then put, and carried by a vote of 6:1:0 (Councilmember Yukimura voting no). Council Chair Rapozo: Motion carried. Are there anymore amendments? We are back to the main motion. Is there any other further discussion? Councilmember Kagawa: Yes. Council Chair Rapozo: Go ahead COUNCIL MEETING 75 NOVEMBER 28, 2018 Councilmember Kagawa: This was a rough one, I must say. I want to thank Aida. Aida took the brunt of the concerns in trying to be the in-between myself, the Building Division, and the Contractor's Association. I really tried to look for a compromise, but it was difficult. There was no middle ground and at the end of the day, I just had to go with what I thought was the most important at this time. Yes, I do value green energy and those climate change issues; however, I think for me, the cost and having options to do things cheaper was the kicker as far as importance and how to vote on this matter. It did not help that we are always the leaders in passing codes. Doug is the all-star in Honolulu. He is the one that puts in a lot of the effort to push all the Code amendments. The State task force loves Doug because he is always looking forward to update and stays up-to-date as possible. Kaua`i is always the one that...at least he has the courtesy to bring it in front of Council and be the first to approve all of our Code updates while Honolulu, Maui, and Hawai`i Island just lag behind and wait for Kaua`i at the end. That way, it is tough being the guinea pig when you cannot see what other people did as far as putting in the leg work and due diligence. I just want to thank Doug and Leo, and I know while they may not be totally happy with our end product, it has been a tough job because myself and Aida can tell you that we have been pulled in two (2) directions on this one. This is the best that we got. It can always be amended again if we can somehow get the Contractor's Association to work on some kind of compromise. But I think it will take the Building Division working with Doug, maybe, as the key to try and see what areas we may have fallen short that we can compromise on. So this is not the end. There is always amendments to come if something is broken. There is always ways to improve it. (Council Chair Rapozo, the presiding officer, relinquished Chairmanship to Councilmember Kagawa.) Councilmember Kagawa: Is there any other discussion on this? Councilmember Kaneshiro. Councilmember Kaneshiro: For me, I just want to make it clear that this does not prohibit anyone from doing any of these measures. I think the things that we looked at were things that probably will not end up with a payback. You look at something like electrical vehicle charger power, requiring people to put an electric vehicle charger in their garage. If an owner never has an electric vehicle, they will never use that. Yes, maybe the cost now is a little bit to put in, but it is something that they may never use. All this does is give the people the option to say, "I am willing to take the risk and say that I am never going to have an electric vehicle or if I sell it and the next person has an electric vehicle, I take that risk." That is all these things were. They had submetering in buildings, having us submeter for every single tenant. You do not know if you are going to have a tenant in every single building. You may be able to lease the whole building out at once, you may be able to lease half the building out. These are just things that people need to just take into consideration when they do things. The other one was, yes, requiring a fan in all large bedrooms and large spaces. Again, that is an option that a homeowner can or does not need to do. In my house, I do not have a large fan. We do buy the small little fans to plug in. It is good enough. We only use it in times when it is hot. If homeowners want to take COUNCIL MEETING 76 NOVEMBER 28, 2018 advantage of it, they can. This is not prohibiting anyone from taking any measures that they do not want to take. Councilmember Kagawa: Further discussion? Councilmember Kawakami. Councilmember Kawakami: Thank you, Councilmember Kagawa. I will be supporting this, but as I transition across the street, I will tell you that we do plan to revisit this with the contractors and see if there is middle ground because I can tell you that there are certain things in this Code that I am pretty adamant about, and one of them is submetering. I brought up the example of having no consequences for people being wasteful with their energy in certain situations. There thinking about consequences of people being wasteful with their energy in certain situations. There is an affordable housing project on Maui where they have one (1) electric meter, so there is no disincentives for tenants to not just leave their air conditioners on all day because the cost is shared through everyone. So they are having major issues. I am pretty adamant that there is value in submetering, and so we are going to have to reach out, talk, and get real with that issue. The other thing I am pretty adamant about is that when you have a roof replacement, you should have insulation because we had the discussion years ago that in Hawai`i, because of our climate, a majority of the heat comes through the roof and not the walls. So we pushed back on the full enveloping of insulation on the walls, but we did require it in the roof because that is where heat comes through. I understand that this is creating the option. It is not saying "yes" or "no." But moving forward, we are going to continue to work with this body and we are going to work with the contractors just to educate them what the intent is. I am pretty optimistic that we can come to some sort of solution on the big- picture items. For the electric vehicle charging stations, I understand it is not requiring a charger, but the rough-in, but it does add to the cost. Here is the difficult thing, it is just that the cost of construction in Hawai`i is higher than anywhere else in the world, so we have to be compassionate about it. We have affordable housing issues that we need to tackle, so there is always going to be hesitancy to raise the cost of construction in a place where cost of construction is already high. It is just geographically, this is what we are dealing with. When everything needs to be shipped in, it adds exponentially to the costs. For elected officials, the Administration and the public at-large also have to understand what we are dealing with. It is hard to add to the cost of construction when our construction costs are already high and we have a tremendous lack of affordable housing. The plan is to reach somewhere where we can strike that right balance and continue to move the dialogue forward and come to some sort of solution. Thank you, Councilmember Kagawa. Councilmember Kagawa: Councilmember Yukimura. Councilmember Yukimura: Yes. I am really glad to hear the Mayor-elect talk about the key issues that I, too, am concerned about. I was going to vote against this Bill, as amended. If the Council does not pass a bill, then the existing bill will go into effect. Some of the issues like the ceiling fans may seem smaller, but the roof replacement and the submetering are really critical, although these are for commercial buildings. I guess the residential buildings are addressed by the tropical house. Is that right? For the same reasons that Councilmember Kawakami COUNCIL MEETING 77 NOVEMBER 28, 2018 mentioned, submetering and roof replacement, those are really major in terms of the comfort of a place and functionality of buildings. Even though you leave it as a choice, most people do not even know they have a choice. If those changes are forthcoming, I will be glad for that and also, I am thinking that we need to talk to the financial institutions because they need to make these energy costs—I do not know at a lower interest rate or some kind of accommodation to address the upfront cost because these costs will be paid back in such a short time and then will mean savings to the household, and that does affect things like ability to pay your mortgage. I think the financial institutions should really be brought into this conversation. Councilmember Kagawa: Further discussion? Seeing none, roll call. The motion to approve Bill No. 2710, Draft 2, as amended to Bill No. 2710, Draft 3, on second and final reading, and that it be transmitted to the Mayor for his approval was then put, and carried by the following vote: FOR APPROVAL: Brun, Chock, Kaneshiro, Kawakami, Yukimura, Kagawa TOTAL– 6*, AGAINST APPROVAL: None TOTAL– 0, EXCUSED & NOT VOTING: Rapozo TOTAL– 1, RECUSED & NOT VOTING: None TOTAL– 0. (*Pursuant to Rule No. 5(b) of the Rules of the Council of the County of Kauai, Councilmember Yukimura was noted as silent, but shall be recorded as an affirmative vote for the motion). Councilmember Kagawa: Next item, please. Bill No. 2723 – A BILL FOR AN ORDINANCE TO AMEND SECTION 5A-1.1 OF THE KAUAI COUNTY CODE 1987, AS AMENDED, RELATING TO REAL PROPERTY TAX: Councilmember Yukimura moved to approve Bill No. 2723, on second and final reading, and that it be transmitted to the Mayor for his approval, seconded by Councilmember Kaneshiro. Councilmember Kagawa: It has been moved and seconded to approve. Is there 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: Councilmember Kagawa: Seeing none. The motion to approve Bill No. 2723, 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 78 NOVEMBER 28, 2018 FOR APPROVAL: Brun, Chock, Kaneshiro, Kawakami, Yukimura, Kagawa TOTAL— 6, AGAINST APPROVAL: None TOTAL— 0, EXCUSED & NOT VOTING: Rapozo TOTAL— 1, RECUSED & NOT VOTING: None TOTAL— 0. SCOTT K. SATO, Deputy County Clerk: Motion passes. Bill No. 2724 — A BILL FOR AN ORDINANCE AMENDING CHAPTER 15, ARTICLE 4, KAUAI COUNTY CODE 1987, AS AMENDED, RELATING TO OUTDOOR SIGNS: Councilmember Yukimura moved to approve Bill No. 2724, on second and final reading, and that it be transmitted to the Mayor for his approval, seconded by Councilmember Kaneshiro. Councilmember Kagawa: It has been moved and seconded to approve. Councilmember Kaneshiro: There is an amendment from the Administration. Councilmember Kaneshiro move to amend Bill No. 2724 as circulated, and as shown in the Floor Amendment, which is attached hereto as Attachment 4, seconded by Councilmember Brun. Councilmember Kagawa: Is there any discussion or questions on the amendment? Councilmember Yukimura. Councilmember Yukimura: I am glad to see this introduced and I do not know if you want Doug to come up and explain it, but it sounds like basically, these organizations do not have to come and wait for a permit. They do have to register their signs, their intention, and their commitment, right? Councilmember Kaneshiro: We should probably ask them the question. I think the intent is to not hold up the process... Councilmember Kagawa: Administration, please. Councilmember Kaneshiro: ...but to have them fill out a form and turn it in rather than an approval process. But I would ask them the question. Councilmember Kagawa: Do you have the amendment? Councilmember Yukimura, you have the floor. There being no objections, the rules were suspended. Councilmember Yukimura: Doug, if you could just briefly explain what this amendment will do and does not do. DOUGLAS HAIGH, Chief of Building Division: Thank you, Council. Doug Haigh, Department of Public Works, Building Division. Thank you for this • COUNCIL MEETING 79 NOVEMBER 28, 2018 opportunity. We listened to the Council last week and heard the concern, and we feel that our amendments support the concern of the Council. Number one was to minimize any bureaucratic efforts that nonprofits would have to go through in supporting their events. As a person who has been involved in nonprofits, I know you want to focus on the event, you do not want to do the...you are volunteering already. You are busy and you have enough to do. You do not need to have to go down to the County building three (3) or four (4) times to try to get your permit. So what we did is we said, "Yes. Okay, no permit is required, but we still need to know about it." Part of the process is life and safety. But first, the banners should identify the nonprofit organization so that we know it is a nonprofit putting up the banner and then they should put the date of the event. I remember Council Chair Rapozo thought it would be silly to not put the date, but just to make sure so that if we drive by, we see that date is expired, we know that sign should not be there. The second item is life and safety. "Shall not be posted in the rights-of-way" and this goes to the Traffic Code. You do not want a sign blocking line of sight at intersections. The way the Ordinance was written, there was no regulation of the banner, but life and safety is important. Also, we put in the condition of the size of the banner so that it is complying with the base code banner sizes. The intent is allowing banners, but it is important that there is a regulation on the size because things can just get bigger, and bigger, and bigger. We have had the thirty-two (32) square foot size for banners, we have never really has complaints, I think it is adequate to inform the public of events, so I think it is a good ordinance. Then, we required the written notice and we developed a form. This form is a document in process. This is my first quick pass at it. I provided that to the Council, a copy of the form. This will be something that we will post on our website. It is something they will be able to E-mail, fax, or drop off to us to make it very simple. As long as they give us the form twenty-four (24) hours before, and one thing on the form and actually another one, they have the property owner's permission. In the original bill, there was no discussion at all about where the sign would be put. So it is important that they have the property owner's permission and that we make sure they are not putting it in the road right-of-way, which is important. If they are putting it on private property, but they are going to get permission from the property owner to put the sign there. We feel that our amendments are appropriate and improve on the Bill, but still stay well within the intent of what we heard from the Council when we were here last week. We hope that can you can support our amendments. Councilmember Kagawa: Thank you. Are there any further questions? Councilmember Kawakami. Councilmember Kawakami: Does this pertain to private and public property? Mr. Haigh: That is correct, yes. Councilmember Kawakami: I will be honest, I was hesitant to support this because just because it is a nonprofit does not mean we want to give them the authority to post things. Let me remind you, you could have a Satanist group as a nonprofit agency. You do not want to have them have a free open door to start posting things where they want to. You may laugh at it, but take a look at the West Borrow COUNCIL MEETING 80 NOVEMBER 28, 2018 Baptist Church and their message of hate. So there is a double-edge sword. Quite frankly, have you had complaints from nonprofits about our permitting process for signs? Mr. Haigh: Well, grumbles. Councilmember Kawakami: Okay. It is a "slippery slope" once we open that door. I appreciate the amendment. At least it gives some notification of who is putting things up and at least locations where it will be. At least there is some form of compliance. But the earlier version was just an open door. Thank you. Councilmember Kagawa: Anyone else? Seeing none, thank you. Mr. Haigh: Okay. Anyone from the public wishing to speak on this? Seeing none, meeting called back to order. There being on one present to provide testimony, the meeting was called back to order, and proceeded as follows: Councilmember Kagawa: Further discussion? Roll call. The motion to amend Bill No. 2724 as circulated, and as shown in the Floor Amendment, which is attached hereto as Attachment 4 was then put, and carried by the following vote: FOR AMENDMENT: Brun, Chock, Kagawa Kaneshiro, Kawakami, Yukimura TOTAL— 6, AGAINST AMENDMENT: None TOTAL— 0, EXCUSED & NOT VOTING: Rapozo TOTAL— 1, RECUSED & NOT VOTING: None TOTAL— 0. Ms. Fountain-Tanigawa: Motion passes. Councilmember Kagawa: Next item. Oh, sorry. Back to the main motion, roll call. Councilmember Yukimura: As amended. The motion to approve Bill No. 2724, as amended to Bill No. 2724, Draft 1, on second and final reading, and that it be transmitted to the Mayor for his approval was then put, and carried by the following vote: FOR APPROVAL: Brun, Chock, Kagawa Kaneshiro, Kawakami, Yukimura TOTAL— 6, AGAINST APPROVAL: None TOTAL— 0, EXCUSED & NOT VOTING: Rapozo TOTAL— 1, RECUSED & NOT VOTING: None TOTAL— 0. Ms. Fountain-Tanigawa: 6:1. 1 COUNCIL MEETING 81 NOVEMBER 28, 2018 Councilmember Kagawa: Thank you, Clerk. Next item. Bill No. 2725 — A BILL FOR AN ORDINANCE AMENDING CHAPTER 7A, KAUAI COUNTY CODE 1987, AS AMENDED, RELATING TO AFFORDABLE HOUSING PRESERVATION: Councilmember Yukimura moved to approve Bill No. 2725, on second and final reading, and that it be transmitted to the Mayor for his approval, seconded by Councilmember Chock. Councilmember Kagawa: Discussion? Councilmember Yukimura moved to amend Bill No. 2725 as circulated, and as shown in the Floor Amendment, which is attached hereto as Attachment 5, seconded by Councilmember Chock. Councilmember Kagawa: Are there any questions on the amendment, or Councilmember Yukimura? Councilmember Yukimura: Yes. Councilmember Kagawa: You have the floor. Councilmember Yukimura: The amendment removes the requirement of a long-term affordability for affordable housing that is required to County zoning and planning powers. So it only applies to County projects, which are not dependent on a study per se, and if I could just make a short presentation, I would appreciate it. Councilmember Kagawa: Go ahead. Councilmember Yukimura: Yes, and I need the clicker, too. I thought a lot between the last meeting and this meeting and my failure to show the urgency of this issue, but these are the last four (4) housing projects that had been done. You see Kolopua in 2016, Rice Camp I in 2016, Rice Camp II in 2017, and Koa`e. That is in four (4)years and Koa`e is projected to be completed this year, but that is two hundred sixty-eight (268) units in four (4) years or sixty-seven (67) homes per year. Our General Plan says we need seven thousand two hundred (7,200) homes, nine thousand (9,000), but eighty percent (80%) of that which is the non-market housing, or subsidized housing. Seven thousand two hundred (7,200) homes over twenty (20) years will mean that we need to build three hundred sixty (360) homes per year. Scott can you go to the next one or does this clicker go? Without long-term affordability requirement, Kolopua would expire in sixty (60) years and Koa`e would expire in thirty (30) years, so we would be minus one hundred seventy-eight (178) units over time. In thirty (30) years, Koa`e would not be available to your children and in sixty (60) years, they will not be available to your grandchildren. That is the impact of housing going out of the market. Those two (2) projects are now long-term, but they are long-term because of intervention that happened on a case-by-case basis. That is why a long-term affordability policy is necessary. I want to say that both Kolopua and Koa`e were win-wins. It was not like forcing the developer. We found ways to make it long-term and if you have a policy, that will guide the Housing Agency and how they make their negotiations or their proposals, but that is the COUNCIL MEETING 82 NOVEMBER 28, 2018 urgency of long-term affordability. I want to show you that other places are thinking the same way that we are. You will see in 2015, that Mayor Caldwell proposed an islandwide strategic housing plan, and you will see that paragraph is highlighted basically saying, "Islandwide strategic housing plan aims to encourage; one (1), development of more housing; but two (2), keep housing affordable longer; and then three (3) rezoning areas along the rail line, that is not really applicable to us; and then implement an inclusionary zoning policy." Therefore, you see that those who have been working a long time on what it is going to take and it is going to take extraordinary effort given that we have to go from sixty-seven (67) a year to three hundred sixty (360) a year. In our own Housing Agency's presentation in 2019, that was just this year, you will see that their strategic plan talks about development and preservation of affordable housing inventory. That is one of their goals and this Bill will not pass today, I think it is clear, but I just want to stress how both this long- term policy as well as the capital fund for building housing is going to be really essential. Thank you. Councilmember Kaneshiro: Are there any questions? Is there any discussion? Councilmember Chock. Councilmember Chock: So your amendment sort of narrows this permanent affordability to just County projects? Councilmember Yukimura: Yes. Councilmember Chock: That is what is on the table now. Is it? No? Councilmember Yukimura: Yes. I am sorry? Councilmember Chock: Mauna Kea is shaking his head. I am wondering if that is different from what I am hearing. We were clearly at an impasse last week in the Committee in terms of housing support of this as well as many others. That is why I am trying to get an understanding of what the impact is as it relates to the Council direction that the Committee had asked for, which was to complete the study, and then come back with the amended ordinance. Councilmember Yukimura: I want to get to the language of the ordinance. Aida. Councilmember Chock: I guess my question is two-fold. One, it seems like a significant change from the current bill that was introduced. Councilmember Yukimura: No, it is amending the Bill. Councilmember Chock: I understand. Councilmember Yukimura: And it is leaving...In Section 5, it tells you which housing would be covered if the zoning conditioned housing were excluded, which is what the amendment does. So it says, "Any affordable or workforce housing development developed by or for the County, either by itself in partnership." COUNCIL MEETING 83 NOVEMBER 28, 2018 Councilmember Chock: Okay. Councilmember Yukimura: That is the wording. Councilmember Chock: Mauna Kea, can you give me a little bit of your insight in terms of... you were talking about as it relates to the legal aspects of it. I just want to make sure that we are not talking about two (2) separate things or is it the same impact. Mr. Trask: Aloha, for the record, Mauna Kea Trask, County Attorney. It still contains the problem with what the definition of"long-term affordable" being longest term generally accepted by law. Again, that should be defined, and then public moneys is still involved, so any project dealing with public moneys. Like Ms. Fu said at the last meeting, "What does that mean?" Are you putting tax credits on that? Are you creating infrastructure on that? Any public money from State, Federal, or County, it is vague, and you are not giving the Housing Agency any guidance as to what that means. All affordable projects touch public money, it is part of the reason you can develop... Councilmember Chock: Is it clear enough? Mr. Trask: I do not think so. Councilmember Chock: Not clearly defined? Mr. Trask: Yes. Councilmember Chock: Okay. Councilmember Yukimura: Can I just say that I checked in this week with the City & County of Honolulu and they actually have a sixty-year affordable housing requirement on the projects that they do and they have a one percent (1%) charter amendment that earmarks one percent (1%) of their real property tax. That is actually what the sixty percent (60%) applies to. The thing about the sixty percent (60%) though is that it seems like a long time, but it actually is your...and they also told me that there were no legal challenges when it was—I think the language they used was in perpetuity. Councilmember Kagawa: Is there further discussion? Councilmember Kaneshiro: We heard some pretty compelling testimony from the Housing Agency at the last go-around and it was not about the merit, but basically about the process. We talked about this task force that went out to put hard work and we are looking for results from that. As well-intended as this is, this is premature. That is where we left at, at the last meeting. I still intend to not support it moving forward. In the future, we will see. Maybe the recommendations will recommend exactly this, but the timing is premature and I think we should let the process present itself. COUNCIL MEETING 84 NOVEMBER 28, 2018 Councilmember Kagawa: Do we want to vote on the amendment first? Councilmember Yukimura: I think we have to hear from the public, too. Councilmember Kagawa: Is there anyone from the pubic who wishes 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: Or we can vote on the amendment first. Councilmember Kagawa: I was thinking that we take the public testimony when we are at the main motion. Councilmember Yukimura: Yes, we could do that. Councilmember Kagawa: Roll call on the amendment. The motion to amend Bill No. 2725 as circulated, and as shown in the Floor Amendment, which is attached hereto as Attachment 5 was then put, and failed by the following vote: FOR AMENDMENT: Yukimura TOTAL — 1, AGAINST AMENDMENT: Brun, Chock, Kagawa, Kaneshiro, Kawakami TOTAL — 5, EXCUSED & NOT VOTING: Rapozo TOTAL — 1, RECUSED & NOT VOTING: None TOTAL — 0. Ms. Fountain-Tanigawa: Motion fails. Councilmember Kagawa: We are back to the main motion. Members? Councilmember Brun moved to receive Proposed Draft Bill (No. 2732) for the record. Councilmember Kagawa: We need to vote on the motion to approve. Is there anyone from the public who signed up to testify? Is there anyone wishing to speak? 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 Kagawa: Members, final discussion. Roll call. COUNCIL MEETING 85 NOVEMBER 28, 2018 The motion to approve Bill No. 2725, on second and final reading, and that it be transmitted to the Mayor for his approval was then put, and failed by the following vote: FOR APPROVAL: Yukimura TOTAL— 1*, AGAINST APPROVAL: Brun, Chock, Kagawa, Kaneshiro, Kawakami TOTAL—6, EXCUSED & NOT VOTING: Rapozo TOTAL— 1, RECUSED & NOT VOTING: None TOTAL—0. (*Pursuant to Rule No. 5(b) of the Rules of the Council of the Council of Kaua`i, Councilmember Yukimura was noted as silent, but shall be recorded as an affirmative vote for the motion.) Councilmember Kaneshiro moved to receive Bill No. 2725 for the record, seconded by Councilmember Brun, and carried by following vote: FOR RECEIPT: Brun, Chock, Kagawa, Kaneshiro, Kawakami, Yukimura TOTAL — 6, AGAINST RECEIPT: None TOTAL — 0, EXCUSED & NOT VOTING: Rapozo TOTAL — 1, RECUSED & NOT VOTING: None TOTAL — 0. Councilmember Kagawa: Can we go back to the item that George is waiting for? I am praying, George, that you can relate SNAP to this approval because I really think that if it is time sensitive, I do not want to see us hold off. If we made an error, we made an error, but we have to go back. What is your response? Mr. Costa: For the record, George Costa, Director of the Office of Economic Development. I spoke to Megan Fox who said this is not SNAP EBT, but this is SNAP education money being used by the Department of Health to do outreach for healthy food. Councilmember Kagawa: Ding, ding, ding. Sounds good with me. Thank you. Are there any questions for George? Thank you for doing that. The motion to approve C 2018-260 was then put and carried by a vote of 6:0:1 (Council Chair Rapozo was excused). Councilmember Kagawa: Motion carried. Next item, please. EXECUTIVE SESSION: ES-971 Pursuant to Hawai`i Revised Statutes (HRS) Sections 92-4, 92-5(a)(4), and Kaua`i County Charter Section 3.07(E), the Office of the County Attorney requests an Executive Session with the Council to provide the Council with a briefing on the litigation of Mark N. Begley vs. County of Kaua`i, et al., Civil No. CV16-00350, and related matters. This briefing and consultation involves COUNCIL MEETING 86 NOVEMBER 28, 2018 consideration of the powers, duties, privileges, immunities, and/or liabilities of the Council and the County as they relate to this agenda item. ES-972 Pursuant to Hawai`i Revised Statutes (HRS) Sections 92-4 and 92-5(a)(2), (4), and (8), the purpose of this Executive Session is to consider matters that require confidentiality under state law, to wit, the hiring of a County Auditor, including interviewing any candidates, and terms and conditions of employment. The further purpose of this Executive Session is to meet with the Council's legal counsel on questions and issues relating to the Council's powers, duties, privileges and immunities and/or liabilities, claims and/or potential claims, as such powers, duties, privileges and immunities and/or liabilities, claims and or potential claims relate to the foregoing item, and to take such action as the Council deems appropriate. Councilmember Yukimura moved to convene in Executive Session for ES-971 and ES-972, seconded by Councilmember Kaneshiro. Councilmember Kagawa: Is there 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: Councilmember Kagawa: Seeing none, roll call. The motion to convene in Executive Session for ES-971 and ES-972 was then put, and carried by the following vote: FOR EXECUTIVE SESSION: Brun, Chock, Kagawa, Kaneshiro, Kawakami, Yukimura TOTAL — 6, AGAINST EXECUTIVE SESSION: None TOTAL — 0, EXCUSED & NOT VOTING: Rapozo TOTAL — 1, RECUSED & NOT VOTING: None TOTAL — 0. There being no objections, the meeting recessed at 3:39 p.m. to convene in Executive Session. The meeting reconvened at 4:03 p.m., and proceeded as follows: (Council Chair Rapozo was noted as present.) Council Chair Rapozo: Next item. C 2018-261 Communication (11/15/2018) from the First Deputy County Attorney, requesting authorization to expend additional funds up to $250,000.00 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 Yukimura moved to approve C 2018-261, seconded by Councilmember Kaneshiro. COUNCIL MEETING 87 NOVEMBER 28, 2018 Council Chair Rapozo: Is there 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 to approve C 2018-261 was then put, and unanimously carried. Council Chair Rapozo: Motion carried. That ends the formal open agenda for the day. We are adjourned. ADJOURNMENT. There being no further business, the Council Meeting adjourned at 4:04 p.m. Respectfully submitted, Ilk ►• JAD t� . FOUNTAIN-TANIGAWA County Clerk :dmc Attachment 1 15. Assignments, etc. The Lessee shall not transfer or assign this lease or any interest, either voluntarily or by operation of law, and any transfer or assignment made shall be null and void;provided that with the prior written approval of the Lessor the assignment and transfer of this lease or any portion may be made only if it is to a nonprofit corporate successor of the Lessee. 16. [Subletting]License Agreements. The Lessee shall not [rent or] sublet the whole or any portion of the premises, provided that the Lessee may issue license agreements with farmers tor a portion of the property for use as farm plots in a manner consistent with this agreement and with written notice and approval by the Lessor. 17. Indemnity. The Lessee shall indemnify, defend, and hold the Lessor harmless from and against any claim or demand for loss, liability, or damage,including claims for bodily injury, wrongful death, or property damage, arising out of or resulting from: 1) any act or omission on the part of Lessee relating to Lessee's use, occupancy,maintenance,or enjoyment of the premises; 2) any failure on the part of the Lessee to maintain the premises in Lessee's use and control, and including any accident, fire or nuisance, growing out of or caused by any failure on the part of the Lessee to maintain the premises in a safe condition; and 3)from and against all actions, suits, damages, and claims by whomsoever brought or made by reason of the Lessee's nonobservance or nonperformance of any of the terms, covenants, and conditions of this lease or the rules,regulations, ordinances, and laws of the federal, state, or county governments. 18. Costs of litigation. In case the Lessor shall,without any fault on its part,be made a party to any litigation commenced by or against the Lessee, the Lessee shall pay all costs, including reasonable attorney's fees, and expenses incurred by or imposed on the Lessor; furthermore,the Lessee shall pay costs,including reasonable attorney's fees, and expenses which may be incurred by or paid by the Lessor in enforcing the covenants and agreements of this lease, in recovering possession of the premises, or in the collection of delinquent rental,taxes, and any and all other charges. 19. Lessee's insurance. The Lessee.shall procure and maintain, at its cost and expense and acceptable to the Lessor, in full force and effect throughout the term of this lease, commercial and general liability insurance, in an amount not less than$1,000,000 per occurrence and$2,000,000 general aggregate with an insurance company(s) licensed to do business in the State of Hawaii. The policy or policies of insurance shall name the County of Kauai as an additional insured. The insurance shall cover the entire premises in the use or control of the Lessee. The Lessee, within fifteen (15) days from the effective date of this lease, shall furnish the Lessor with a certificate(s) showing the policy(s)to be initially in force, keep the certificate(s) on deposit during the entire lease term, and furnish a like certificate(s)upon each renewal of the policy(s). This insurance shall not be canceled,limited in scope of coverage, or non-renewed until after thirty(30) days written notice has been given to the Lessor. The Lessor shall retain the right at any time to review the coverage, form, and amount of the insurance required by this lease. If, in the opinion of the Lessor,the insurance provisions in this lease do not provide adequate protection for the Lessor, the Lessor may require Lessee to 4 Attachment 2 (November 28, 2018) FLOOR AMENDMENT Bill No. 2710, Draft 2, Relating to the Energy Conservation Code Introduced by: Arryl Kaneshiro (By Request) Amend Bill No. 2710, Draft 2, as follows: 1. Amend proposed Section C403.2.4.2.4 to read as follows: "C403.2.4.2.4 Door switches. Opaque and glass doors opening to the outdoors in hotel [and motel] sleeping units, guest suites, and time-share condominiums shall be provided with controls that disable the mechanical cooling or reset the cooling setpoint to 90° F or greater within five minutes of the door opening. Mechanical cooling may remain enabled if the outdoor air temperature is below the space temperature." 2. Amend Section 405.2.4 to read as follows: "C405.2.4 Specific application controls. Specific application controls shall be provided for the following: 1. Display and accent light shall be controlled by a dedicated control that is independent of the controls for other lighting within the room or space. 2. Lighting in cases used for display case purposes shall be controlled by a dedicated control that is independent of the controls for other lighting within the room or space. 3. Hotel [and motel] sleeping units and guest suites and time-share condominiums shall have a master control device that is capable of automatically switching off all installed luminaires and switched receptacles within 20 minutes after all occupants leave the room. Exception: Lighting and switched receptacles controlled by captive key systems. 4. Supplemental task lighting, including permanently installed under shelf or under cabinet lighting, shall have a control device integral to the luminaires or be controlled by a wall-mounted control device provided that the control device is readily accessible. 5. Lighting for nonvisual applications, such as plant growth and food warming, shall be controlled by a dedicated control that is independent of the controls for other lighting within the room or space. 6. Lighting equipment that is for sale or for demonstrations in lighting education shall be controlled by a dedicated control that is independent of the controls for other lighting within the room or space." 1 Attachment 2 3. Amend proposed Section C405.10 to read as follows: "C405.10 Sub-metering [(Mandatory)]. In new buildings with tenants, metering [shall] may be collected for the entire building and individually for each tenant occupying a space with three electrical circuits or more. Tenants shall have access to data collected for their space. A tenant is defined as "one who rents or leases from a landlord." 4. Amend Section C503.3.1 to read as follows: "C503.3.1 Roof replacement. Roof replacement of uninsulated roofs [shall] may include [at least two] any of the following: 1. Energy Star compliant roof covering 2. Radiant barrier 3. Attic ventilation via solar attic fans or ridge ventilation or gable ventilation" 5. Amend proposed Section R404.2 to read as follows: "R404.2 Electrical vehicle charger power. Electrical rough-in of a 30 amp circuit for future electrical vehicle charger [shall] may be installed in garage/carport area." 6. Amend Item No. 12 under proposed Section R401.2.1, Tropical zone, to read as follows: "A ceiling fan or ceiling fan rough-in [is] or whole-house fan may be provided for bedrooms and the largest space that is not used as a bedroom." 7. Amend proposed Section R404.3 to read as follows: "R404.3 Ceiling Fans [(Mandatory)]. A ceiling fan or ceiling fan rough-in [is] or whole house fan may be provided for bedrooms and the largest space that is not used as bedroom." (Material to be deleted is bracketed. New material to be added is underscored.) V:\AMENDMENTS\2018\FA 2710d2 cakl AMK_dmc.doc 2 Attachment 3 asp (November_2(r, 2018) FLOOR AMENDMENT Bill No. 2710, Draft 2, Relating to the Energy Conservation Code Introduced by: Arryl Kaneshiro (By Request) Amend Bill No. 2710, Draft 2, as follows: 1. Insert a new amendment in appropriate numerical order as follows, and renumber all subsequent sections accordingly: "( ) Amending Section R503.2. Section R503.2 is amended to read as follows: "R503.2 Change in space conditioning. Any nonconditioned or low-energy space that is altered to become conditioned space shall be required to be brought into full compliance with this code. Exceptions: 1. Where the simulated performance option in Section R405 is used to comply with this section, the annual energy cost of the proposed design is permitted to be 110 percent of the annual energy cost otherwise allowed by Section R405.3. 2. Split air conditioner systems where the cost to bring the space into full compliance with this code exceeds a five-year payback period based on the additional energy costs of the added space conditioning system. This exemption is subject to use of a split air conditioner system with a SEER rating in the top 25% of readily available units." (New material to be added is underscored. All material is new.) V:\AMENDMENTS\2018\fa -2710d2 r503 AMK dmc.docx Attachment 4 (November 28, 2018) FLOOR AMENDMENT Bill No. 2724, Relating to Outdoor Signs Introduced by: ARRYL KANESHIRO (By Request) Amend Bill No. 2724 in its entirety to read as follows: SECTION 1. Purpose. The purpose of this Ordinance is to amend Chapter 15, Article 4, Kaua`i County Code 1987, as amended, relating to outdoor signs to add a definition for "Nonprofit organizations" and to exempt nonprofit organizations' event signs from the permit requirements of this Article. SECTION 2. Chapter 15, Article 4, Kaua`i County Code 1987, as amended, is hereby amended as follows, and all other and prior ordinances or parts of ordinances in conflict herewith are hereby repealed: 1. Chapter 15, Section 15-4.3, Definitions, is hereby amended by adding a definition for "Nonprofit organization" as follows: "Sec. 15-4.3 Definitions. "Nonprofit organization" means an association, corporation, or other entity organized and operated exclusively for religious, charitable, scientific, literary, cultural, educational, recreational, or other nonprofit purposes, no part of the assets, income, or earnings of which inures to the benefit of any individual or member thereof." 2. Chapter 15, Section 15-4.6, Signs Not Requiring a Permit, is hereby amended by adding a new subparagraph (3) to read as follows: "Sec. 15-4.6 Signs Not Requiring a Permit. The following types of signs are exempt from the permit requirements of this Article, but must comply with the requirements of Sections 15-4.4, 15-4.7 and 15-4.10. (a) Temporary Signs. (1) Real Estate Sign. Any sign which contains information regarding the sale, rental or lease of premises and/or the real property upon which the sign is located.A real estate sign shall not exceed six (6) square feet; and only one (1) such shall be allowed per street frontage of the premises or real property. (2) Political Campaign Sign. Any sign which: (A) Identifies the headquarters of a political candidate, and shall not exceed the size limitation set forth in Section 15-4.5(b). 1 • Attachment 4 (B) Identifies and/or provides information about a political candidate or issue to be voted upon. It shall not be posted within the street right-of-way boundary of any public road or highway and shall not block, obstruct or impede, partially or completely, any public sidewalk or pedestrian walkway and shall not exceed the size limitations set forth in Section 15-4.5(b). (3) Nonprofit Organization Event Signs. Any sign which contains information regarding an event hosted by a nonprofit organization, may be posted no more than ten (10) days prior to the event and must be removed no later than the day following the event. (A) The banner shall identify the name of the nonprofit organization hosting the event and the date of the event. (B) It shall not be posted within the street right-of-way boundary of any public road or highway, shall not obstruct the vision of drivers (as regulated in Section 16-20.4 Obstruction of Intersections), shall not block, obstruct or impede, partially or completely, any public sidewalk or pedestrian walkway, and shall not exceed the size limitations set forth in Section 15-4.5(a)(3). (C) The nonprofit organization shall provide written notice to the County permitting agency of the size, type, location, property owner's approval, and posting dates of the banner. Such written notification shall be provided to the County agency no less than twenty-four hours prior to the posting of the banner. Failure to provide such written notice may result in the sign being considered an unlawful sign and subject to removal under Section 15-4.9(c) Abatement and Removal of Unlawful Signs and fines under Section 15-4.10 Violation and Penalty." SECTION 3. Severability. The invalidity of any word, section, clause, paragraph, sentence, part or portion of this Ordinance shall not affect the validity of any other part of this Ordinance that can be given effect without such invalid part or parts. SECTION 4. Material to be repealed is bracketed. New material is underscored. When revising, compiling, or printing this Ordinance for inclusion in the Kaua`i County Code 1987, as amended, the brackets, bracketed material, and underscoring need not be included. SECTION 5. This Ordinance shall take effect upon its approval. (Material to be deleted is bracketed. New material to be added is underscored.) V:\AMENDMENTS\2018\Bill 2724 Relating to Outdoor Signs - FA 11-26-18(PW) CNT_dmc.docx 2 Attachment 5 (November 20, 2018) FLOOR AMENDMENT Bill No. 2725, Relating to Affordable Housing Preservation Introduced by: JOANN A. YUKIMURA Amend Bill No. 2725 as follows: 1. Amend Section 1 as follows: "SECTION 1. Findings and Purpose. The Council finds that when affordable housing developed with taxpayer subsidies [or required through the County's zoning and planning powers] is allowed to be re-sold at market prices, this puts many of the county's most vulnerable citizens, particularly the elderly and low-income families at risk. It also prevents the County from continually increasing its inventory of affordable housing which is the only way it can begin to address the affordable housing need on Kaua`i. Many federal, state, and county housing programs require affordability for only a limited time, resulting in many subsidized properties "timing out" and converting to market properties. The preservation of affordable housing is necessary if the County is to meet existing and future housing needs. It is more critical than ever that the County preserve the affordability of affordable housing. The purpose of this ordinance is to preserve the affordability of housing developed with public (taxpayer) moneys [or required by state or county zoning and planning powers]." 2. Amend the proposed definition of"Long-term affordable housing" as follows: "Long-term affordable housing" means affordable housing as defined in this Chapter that is restricted by deed or contract provisions to remain affordable for the longest term generally accepted by law, where the intent is for continual extension of the deed or contract provisions so as to ensure that any affordable housing developed with public moneys [or required by county zoning or planning actions] will always be affordable." (Material to be deleted is bracketed.) V:\AMENDMENTS\2018\FA-2725 jy AMK_dmc.docx 1