HomeMy WebLinkAbout08_03_2022 Council minutesCOUNCIL MEETING
AUGUST 3, 2022
The Council Meeting of the Council of the County of Kauai was called to order
by Council Chair Arryl Kaneshiro at the Council Chambers, 4396 Rice Street,
Suite 201, Lihu`e, Kauai, on Wednesday, August 3, 2022, at 8:45 a.m., after which
the following Members answered the call of the roll:
Honorable Bernard P. Carvalho, Jr.
Honorable Mason K. Chock
Honorable Felicia Cowden
Honorable Bill DeCosta
Honorable Luke A. Evslin
Honorable KipuKai Kuali`i
Honorable Arryl Kaneshiro
APPROVAL OF AGENDA.
Councilmember Kuali`i moved for approval of the agenda, as circulated,
seconded by Councilmember DeCosta.
Council Chair Kaneshiro: We received no written testimony. Is there
anyone in the audience or on Zoom wishing to testify? None.
There being no one present to provide testimony, the meeting proceeded as
follows:
Council Chair Kaneshiro: Are there any questions or discussion on this
item from the Members? Councilmember Cowden.
Councilmember Cowden: Are we doing the Council Meeting first or the
Committee Meetings first?
Council Chair Kaneshiro: The Council Meeting.
Councilmember Cowden: Okay.
The motion for approval of the agenda, as circulated, was then put, and
unanimously carried.
Council Chair Kaneshiro: The motion is carried. Next item.
COUNCIL MEETING 2 AUGUST 3, 2022
MINUTES of the following meetings of the Council:
July 20, 2022 Council Meeting
July 20, 2022 Public Hearings re: Resolution No. 2022-22, Bill No. 2871, and
Bill No. 2872
Councilmember Kuali`i moved to approve the Minutes, as circulated, seconded
by Councilmember Carvalho.
Council Chair Kaneshiro: We received no written testimony on this
item. Is there anyone in the audience or on Zoom wishing to testify? None.
There being no one present to provide testimony, the meeting proceeded as
follows:
Council Chair Kaneshiro: Are there any questions or discussion on this
item from the Members?
The motion to approve the Minutes, as circulated, was then put, and
unanimously carried.
Council Chair Kaneshiro: The motion is carried. Next item.
INTERVIEWS:
CIVIL SERVICE COMMISSION:
Shelley Konishi—Term ending 12/31/2024
ELLEN CHING, Boards & Commission Administrator (via remote technology):
Today, I am happy and honored to introduce Shelley Shinsato Konishi. Shelley was
born and raised on Kauai and attended Elsie H. Wilcox Elementary School and
Kauai High School. After graduation, she continued her education at the University
of Hawaii at Manoa, earning a degree in Business Education. Upon graduation, she
returned home to start a career and family. Initially, Shelley was a personnel clerk
at Kauai Community College and shortly thereafter became an instructor in the
Business Division where she taught for twenty-seven (27) years until her retirement
in 2010. Since 2010, she claims that she has been busier than ever between working
at Gary's Service—her family business—and tending to her five (5) granddaughters
ranging in ages from five (5) months to twelve (12) years old. With what little free
time she has, she enjoys playing tennis. In fact, if money was no object most people
talk about a dream vacation or car, but Shelley would build her own tennis court for
her and her friends. As the daughter of Morris Shinsato, the founding father and
author of the Kauai County Charter, Shelley is following in his footsteps of public
service. With her business and personnel experience, I am grateful that she is willing
to serve on the Civil Service Commission.
Council Chair Kaneshiro: Shelley, do you have anything you want to
add to that?
COUNCIL MEETING 3 AUGUST 3, 2022
SHELLEY KONISHI (via remote technology): No.
Council Chair Kaneshiro: Okay, thank you. Are there any questions from
the Members? Councilmember Cowden.
Councilmember Cowden: Shelley, this is your first time serving on a
board or a commission. Thank you so much. What inspired you or what is your
willingness to serve?
Ms. Konishi:I was arm-twisted two (2) times by Ellen and
my deceased friend, John Isobe. He always bugged all of us about doing our share to
help the community. He is not here in body, but he is twisting my arm from up there.
That is why I said that I would do my share and participate on the Commission.
Councilmember Cowden: Thank you so much. John Isobe was a dear
friend of mine and I worked with him a lot. Thank you.
Council Chair Kaneshiro: Are there any other questions from the
Members? If not, is there anyone in the audience wishing to testify? Alice.
There being no objections, the rules were suspended to take public testimony.
ALICE PARKER:I have had marvelous business experience with
Shelley at Gary's Service. She is always businesslike, on top of it, and she knows what
is going on. She is very helpful in telling me a whole lot of things. She would be terrific.
Please...thank you.
Council Chair Kaneshiro: Thank you. Is there anyone else in the
audience or on Zoom wishing to testify? None.
There being no further testimony,the meeting was called back to order proceeded
as follows:
Council Chair Kaneshiro: Is there any final discussion from the
Members? I will say that I have known Shelley almost my entire life. I know she is
going to be a great asset to the Civil Service Commission. I am classmates with her
daughter. I know pretty much their entire family. I think she will be a great addition
to the Civil Service Commission, and I will be voting in favor of her when the time
comes. Does anyone else have anything to add? Councilmember Cowden.
Councilmember Cowden: I just want to say how much I value her efforts
to come and help. It sounds like she has been basically raised with an understanding
of how our County works. I want to thank you very much.
Council Chair Kaneshiro: Councilmember DeCosta.
Councilmember DeCosta: Shelley, as a school teacher, I see many of our
local kids come through our elementary, intermediate, and high school programs. They
go off to college and become successful. You are that shining star and that future leader
COUNCIL MEETING 4 AUGUST 3, 2022
in our community. It makes me so happy to see one of our local girls prosper like you.
Thank you so much, Shelley.
Council Chair Kaneshiro: Does anyone else have final discussion? If not,
thank you, Shelley. We will be voting on your appointment at our next Council Meeting.
Next up, we have Mai Shintani.
PUBLIC ACCESS, OPEN SPACE, NATURAL RESOURCES
PRESERVATION FUND COMMISSION
Mai Shintani (At-Large)—Term ending 12/31/2023
Council Chair Kaneshiro: Councilmember Evslin, will you be doing the
introduction for Mai?
Councilmember Evslin: Because this is a Council appointee, I will do
the introduction for Mai. I am nominating her. She is a manager at Deloitte, a global
consulting firm. She manages Federal and State projects across the country related
to enterprise risk, crisis, and grants management. Her previous professional
background included advising senior leaders in the Federal Government on
management topics related to emergency management and she worked on disaster
management at the Federal Emergency Management Agency (FEMA) headquarters
in Washington D.C. She grew up on Kauai working at her parents' restaurant, Sushi
Katsu. She is a proud graduate of the Kauai High School Class of 2003 where she
was my classmate. Mai received her Bachelor's Degree in International Studies from
Soka University in Orange County and her Master's Degree in Public Policy and
Human Rights from Columbia University in New York City. She served as a
volunteer in the Peace Corps in Gambia for two (2) years and in Western China for
one (1) year. I will just add that I had the honor of knowing Mai for most of my life.
When I saw that there was a Council appointee position available for the Public
Access, Open Space, Natural Resources Preservation Fund Commission (also known
as the Public Access Commission or Open Space Commission), the first person I
thought of was Mai. I know she will do a great job if appointed.
Council Chair Kaneshiro: That was a good introduction,
Councilmember Evslin. You are competing with Ellen. Mai, is there anything you
would like to add to that introduction?
MAI SHINTANI (via remote technology):Good morning, Councilmembers.
I am just really honored to be here and it is really nice to meet you all virtually. I
hope to meet you in person soon. I am really excited about this opportunity. I am
happy to answer any questions you have.
Council Chair Kaneshiro: Councilmember Cowden.
Councilmember Cowden: Thank you so much for doing this. You have
a rather impressive background. I appreciate that we have a homegrown person who
has done some pretty significant things out there. You understand the Open Space
Commission's kuleana is to make sure the public can get to the beach or to the
COUNCIL MEETING 5 AUGUST 3, 2022
mountains. What do you know about the responsibility of the Open Space
Commission?
Ms. Shintani: Sure, thank you for that question,
Councilmember Cowden. I understand that the Open Space Commission works in
parallel with the Planning Department. We provide recommendations and advise
the County Council on projects to fund with the Fund that is I believe is one-half of
one percent (0.5%) of the real property taxes that go annually to this Fund. My
understanding is that there is a list of projects the public is able to submit through a
survey on your website. Any of these areas that they would like to have the
Councilmembers consider...I believe you did Black Pot, Hideaways Beach, and
Waimea in the past. A lot of those situations dealt with public access. Our job is
really to work with the public, the Council, and the Planning team to provide a list of
recommendations.
Councilmember Cowden: Thank you. I am pleased to see that you are
from Kalaheo, because we need people from all around the island. I appreciate that
you have an understanding of this and how it is essential to our hunting and
gathering rights and the perpetuation of the range of cultures that we have here.
Thank you.
Ms. Shintani: Thank you.
Council Chair Kaneshiro: Councilmember DeCosta.
Councilmember DeCosta: Thank you, Mai. We are glad to have you
aboard. I was at the last Open Space Commission Meeting. I did a small presentation
for Planning on some mauka accesses. I hope that you advocate for our mauka to
makai accesses.
Ms. Shintani: Thank you, Councilmember DeCosta.
Council Chair Kaneshiro: Are there any further questions from the
Members? Is there anyone in the audience or on Zoom wishing to testify? Lonnie.
LONNIE SYKOS: Thank you very much for considering this
position. I very much hope the County Council approves your nomination. I have a
question though about your perception about what your job is. I sat out here in the
peanut gallery some years ago when the land preservation fund was created. At the
time it was created, there was great discussion about whether or not the money in
the Fund should be used solely to acquire property or should it be used to acquire
property and then develop some aspect of it for the public to use, such as a
right-of-way where one does not exist any longer because it fell apart due to the
weather or whatever. My question for the candidate is, have they considered that not
only is their duty to develop a list of properties to purchase, but in consideration of
what is realistic, how does the nominee view how you look at how much money
actually exists to purchase property and how much of that Fund will be committed to
develop some aspect of the property versus purchasing it? This is also a question for
the County Council. This is very germane because you have a Resolution in front of
you in which you want to create this dedicated fund and yet we see from past
experience, that the dedicated fund can easily be raided in order to generate money
for some future budget, which is what occurred with this fund. The purchase of the
COUNCIL MEETING 6 AUGUST 3, 2022
property was then pursued and then the money from the fund was directed to create
the public access to the property. That is my question to both the Council to inform
the nominee, as well as my question to the nominee as to how she would balance those
two (2) needs that now exist for the one (1) fund. Thank you.
Council Chair Kaneshiro: Is there anyone else in the audience or Zoom
wishing to testify? This is on Mai Shintani's appointment to the Open Space
Commission. Are there any further questions from the Members?
There being no further testimony, the meeting was called back to order, and
proceeded as follows:
Council Chair Kaneshiro: Is there any final discussion from the
Members? Councilmember Cowden.
Councilmember Cowden: I just want to respond to what the testifier
was speaking about with Hideaways. He brought up an important point, if that was
the property he was talking about. We ended up basically doing a negotiation where
we got that access without cost, but in order to do that, we needed to improve the
ability to have it be safe. It really was a very good deal. The cost of the
improvement...many times the cost of making the purchase is much more than that.
It was a critical site. Because there was a question...were you able...
Council Chair Kaneshiro: Are you going to ask a question?
Councilmember Cowden: I will not. I definitely voted in support the
improvement, hopefully it can be done for a lot less than it was voted for. Basically,
the improvement was much cheaper than we would ever pay for that land. That is
why that happened. I appreciate what the testifier was pointing out is that there are
a lot of subtleties and training is important. When I look at what you have done,
training is probably going to be a pretty quick learn for you.
Council Chair Kaneshiro: Is there any final discussion? Councilmember
Evslin.
Councilmember Evslin: I just want to thank Mai for her willingness to
serve. As I said in my opening, I think she is going to do a really good service for
Kauai as she has really extensive experience in government. She is a quick learner
and dedicated to the island. Quickly, to respond to Lonnie's question as well. I served
on the Open Space Commission for a few years before the Charter was amended to
allow for the Fund to be used for improvements. We constantly had a stream of issues
that we were seeing...these were at some point County accesses that were overgrown
and people could not longer use them. They got lost in some capacity. Over and over
again we were faced with this issue that the public was asking for help in restoring
these accesses, but the Fund was not able to go towards maintenance or
COUNCIL MEETING 7 AUGUST 3, 2022
improvements, and the accesses were stuck in limbo or lost in some capacity. As far
as what that priority should be, I think that will be up to the Open Space Commission
to balance out on sort of a property-by-property basis. I think it is valuable to be able
to use the Fund sometimes for improvements when necessary.
Council Chair Kaneshiro: Does anyone else have any discussion? If not,
I just want to thank you, Mai, for your willingness to serve. Based on your work
experience and credentials, I think you are very qualified to be on the Open Space
Commission. Not related to the County, but in the back of my head, I am hoping you
will open up Sushi Katsu again. That is just me selfishly saying that if you open it
up, I will be there. It was one of my most favorite restaurants around. Thank you,
again, for your willingness to serve. We will be voting on your appointment at our
next meeting. Next up, we will go through the Consent Calendar and then we will go
to the performance audit.
CONSENT CALENDAR:
C 2022-163 Communication (07/13/2022) from the Director of Finance,
transmitting for Council information, the following reports:
a. County of Kauai Bond Summary of General Long-Term Debt:
Rollforward for Fiscal Year 2022;
b. County of Kauai Bond Supplemental Summary of General Long-Term
Debt Amount Outstanding as of June 30, 2022; and
c. Excluded County of Kauai Bond Supplemental Summary of Long-Term
Debt Amount Outstanding as of June 30, 2022: CFD No. 2008-1
Kukui`ula Development Project) Special Tax Bonds, Series 2012,
Series 2019, and Series 2022.
C 2022-164 Communication (07/19/2022) from Chris Donahoe, Deputy County
Attorney, transmitting for Council information, the Quarterly Report on Settled
Claims filed against the County of Kauai from April 1, 2022 through June 30, 2022.
C 2022-165 Communication (07/20/2022) from the Director of Finance,
transmitting for Council information, Period 12 Financial Reports — Statement of
Revenues, Statement of Expenditures and Encumbrances, Revenue Report, and
Detailed Budget Report as of June 30, 2022, pursuant to Section 21 of Ordinance
No. B-2021-877, relating to the Operating Budget of the County of Kauai for Fiscal
Year 2021-2022.
Councilmember Kuali`i moved to receive C 2022-163, C 2022-164, and
C 2022-165 for the record, seconded by Councilmember Chock.
Council Chair Kaneshiro: We received no written testimony on these
items. Is there anyone in the audience or on Zoom wishing to testify? Seeing none.
There being no one present to provide testimony, the meeting was proceeded
as follows:
COUNCIL MEETING 8 AUGUST 3, 2022
Council Chair Kaneshiro: Is there any final discussion from the
Members?
The motion to receive C 2022-163, C 2022-164, and C 2022-165 for the record
was then put, and unanimously carried.
Council Chair Kaneshiro: The motion is carried. We are going to skip to
C 2022-173, which is the performance audit.
There being no objections, C 2022-173 was taken out of order.
COMMUNICATIONS:
C 2022-173 Communication (07/26/2022) from Council Chair Kaneshiro,
requesting agenda time for a briefing from Spire Hawaii, LLP (external auditors), to
provide a presentation on the Department of Public Works, Roads Division Performance
Audit.
Councilmember Kuah'i moved to receive C 2022-173 for the record, seconded by
Councilmember Cowden.
Council Chair Kaneshiro: Tyler, do you want to go through the
presentation? We will hold our questions until the end of your presentation.
There being no objections, the rules were suspended.
TYLER KIMURA, Spire Hawaii, LLP (via remote technology): Thank you.
Aloha, Council Chair, Council Vice Chair, and Members of the Council, my name is
Tyler Kimura, Partner with Spire Hawaii, LLP. Thank you for the opportunity to
present our report for our performance audit of the Kauai Department of Public
Works, Roads Division. I have a short presentation that summarizes the audit scope,
our findings and recommendations, as well as the Department of Public
Works' (DPW) response to the audit. I would like to thank Acting County Engineer
Troy K. Tanigawa, Managing Director Michael A. Dahilig, and all of the past and
present Roads Division personnel who worked with us throughout the audit process.
Let me just share my screen here.
Here is the audit objectives and scope. We reviewed whether the Roads
Division had the necessary and qualifying staff, policies, and standard operating
procedures to confirm the road maintenance projects funded by the General Excise
Tax (GET) surcharge, which started on January 1, 2019. We also examined whether
the Roads Division had the necessary and qualifying staff, policies, and Standard
Operating Procedures (SOPs) to conduct regularly-scheduled storm drain and
shoulder clearing maintenance, pothole repair, sealing and maintenance, and repair
of safety devices, signs, and road markings. We also followed up on the findings and
recommendations of a Road Maintenance audit that was performed in 2012.
First finding. The Roads Division does not have the necessary and qualified
staff, policies, and SOPS to perform the GET-funded road maintenance projects
COUNCIL MEETING 9 AUGUST 3, 2022
within its scope of responsibility. This funding is based on field work which included
interviews, document review and interviews, and research on practices from other
jurisdictions. We found that the Roads Division did not have sufficient engineering
or project management capacity to conduct assessments on road conditions and to
provide technical oversight such as construction management of contractors. The
roads Division produced only one (1) policy and SOP relating to guidance and
selection on the County streets for paving, reconstruction, and maintenance projects.
We also found that funding from the GET during the test period was unpredictable
and that allocations to projects not relating to road issues are outside of the Roads
Division control that affect its ability to plan. All recommendations for Finding 1
included that the DPW should consider giving a high priority to working with the
Department of Human Resources, to identify the changes it needs to make to fill its
need for in-house engineers. We note that DPW made staffing changes in 2022 that
appeared to show that they made progress in implementing this recommendation, as
certain engineering duties and positions were transferred from the Roads Division to
the Engineering Division, within DPW. DPW and other recipients of GET funding
should consider incorporating best practice policies and SOPS, such as data driven
project monitoring, cost-effective, and efficient organizational structure, project
delivery evaluation, evaluation of program performance and costs, and public access
to project information and compliance processes.
Finally, DPW and other intended recipients of the County GET should be
consulted during the GET allocation process, so the results of cuts to anticipated
funding are known and accepted prior to the cuts being made. In its auditee response,
DPW generally agreed that the finding and recommendation...
Council Chair Kaneshiro: One second, Tyler. Councilmember Cowden.
Councilmember Cowden: Yes, can I ask you to lose some of the
acronyms and use the real words. We are talking to the public. SOP is Standard
Operating Procedure, DPW is Department of Public Works. I see we have "IWR"
which I would not know, but I see that is Islandwide Road Resurfacing. Can you use
the real clause instead of the letters?
Mr. Kimura:Sure. Will do.
Councilmember Cowden: Thank you.
Note: Mr. Kimura thereafter refrained from using acronyms, but acronyms
continue to be used herein for brevity.)
Mr. Kimura: Thank you very much. DPW generally agreed
with the finding and the recommendations and noted that it made the following
improvements, which included moving the contracting and administration of
construction projects including the IWR Program under a Project Manager, which is
now under DPW Administration. They also plan on updating policies and procedures
while working with the Department of Finance on a budget process policy. DPW
estimates that these improvements will be in place by June 30, 2023.
COUNCIL MEETING 10 AUGUST 3, 2022
Second finding. The Roads Division does not have the necessary policies and
SOPs to conduct regularly-scheduled storm drain, shoulder clearing maintenance,
pothole repair, sealing and maintenance, and repair of safety devices, signs and road
markings. The only policy and SOP that was produced to us, was the Road
Resurfacing Policy and SOP, which provides guidance on the protocols and
procedures for selecting which County streets are chosen for paving, reconstruction,
and maintenance projects. There are no policies or SOPS that covered other duties,
including contractor oversight, or project tracking, maintenance and repair
performed by its in-house crews or complaint handling. The Roads Division does not
have project tracking or performance monitoring system for in-house work that would
enable a measurement of response time or other indicators of efficiency and
performance. We have three (3) recommendations related to Finding 2. The Roads
Division with the assistance of DPW and the Engineering Division, should develop or
improve its data gathering with the aim of using the data to analyze efficiency,
effectiveness, and plan future projects. Roads Division should also complete its policy
and SOPS manual and consider policies and practices from other jurisdictions for
inclusion. Roads Division should also consider customer and employee surveys to
identify any areas of improvement. DPW in its auditee response generally agreed
with the finding and recommendations and notes that it has made the following
improvements. DPW estimates that these improvements will be in place by
February 28, 2023.
Finding 3 is related to our assessment of whether the recommendations from
the 2012 Road Maintenance audit were implemented by DPW. We found that Roads
Division has implemented four (4) out of seven (7) recommendations, the two (2)
recommendations were partially implemented, and one (1) recommendation was not
implemented. These are the four (4) recommendations that were implemented. First,
the Administration and Council should provide sufficient resources to enable the
Roads Division to develop an asset management plan. Second, DPW and Roads
Division should conduct an economic trade-off analysis to determine the estimated
optimum amount to invest in roads to achieve the highest economic return. The third
recommendation that was implemented, Roads Division should consider allowing the
reconstruction as part of the roads maintenance solicitation even if exact locations
cannot be specified. The fourth recommendation that was implemented was that the
Administration and Council should ensure that the IWR projects are categorized as
required by the Kauai County Charter, and capital budget funds are not used for
repair and maintenance. The two (2) recommendations that are deemed partially
implemented are listed here. One, the Kauai County Administration and Council
should continue to allocate resources necessary for their Division to plan and execute
time and annual road maintenance programs. We found that the funding and support
was there. However, staffing remains a problem. The former Division Chief and
former Civil Engineer VI appeared to have a good understanding of the nature of the
contracted work, but they retired. We understand that the Roads Division is having
continued problems with filling positions, although they made changes as previously
discussed with moving positions and responsibilities to the Engineering Division.
The second partially implemented recommendation is that the Administration and
Council should provide sufficient resources to enable the Roads Division to complete
its policy for the SOP manual. Roads Division indicates it has the resources to
develop a manual, but the manual has not been completed. The one (1)
recommendation that we deemed was not implemented dealt with DPW and the
Department of Finance, that they should amend their existing policies and
procedures, and develop and chart of account to ensure compliance with State fuel
and vehicle weight tax, and public utility franchise fee restrictions. This finding and
recommendation from the 2012 audit is related to the sources and uses of the
COUNCIL MEETING 11 AUGUST 3, 2022
Highway Fund money. The primary sources are fuel taxes, vehicle taxes, and public
utility franchise fees, but they each have their own restrictions on use. Once all the
funds are comingled within the Highway Fund, the County did not have a way to
ensure that the use of those funds match the restrictions with those sources. In the
Department of Finance's response as to whether this recommendation from the 2012
audit has been addressed and implemented, they responded that it has not been
accounted for and the ability to track the actual use of response has not been done.
For that reason, we deemed this recommendation as not implemented. In its auditee
response, DPW states that it will review the recommendations and any findings that
have not been implemented with the Administration and Council to prioritize and
fund full implementation. I will be happy to answer any questions that you have.
Council Chair Kaneshiro: Councilmember Cowden.
Councilmember Cowden: I will start with a few; I have a lot. I want to
begin by saying that I am glad that our roads work, and that people are going...I want
to acknowledge the positive, that is good. Honestly, I was stunned when I read this
because it seems beyond the pale. We did not do a good job in tracking and complying.
I want to recognize that it is hard to be hired for any position. Why did this audit
take three and one half(3%) years? Did we not ask for this audit in 2019, do I have
the date wrong? It is a long time and that is a big problem. What took so long to get
this data to us? Thank you for doing it.
Mr. Kimura: Thank you, Councilmember Cowden. Great
question. We were working through the process and completed our fieldwork in 2021.
The scope of the audit was through year 2020 and a lot of our findings were of that
date. There were issues and delays getting information from Roads with changes
that were being made related to personnel, so there was some back-and-forth, and
getting it into our final report. Ultimately, that is the reason why it took the amount
of time that it did.
Councilmember Cowden: Okay. I want to let my colleagues ask
questions. Most of my questions will be for the Roads Division and Engineering.
Council Chair Kaneshiro: Councilmember DeCosta.
Councilmember DeCosta: This audit was from 2012, am I correct?
Mr. Kimura: The discussion and finding they made from
Finding 3 was to address whether the recommendations from the 2012 audit were
implemented. The findings for Finding 1 and Finding 2, whether the Roads Division
had the necessary policies and procedures to deal with the GET surcharge, that
related to the period 2019 and 2020. The last part of our scope was to look at the
2012 audit to see what was done relating to those recommendations.
Councilmember DeCosta: Two (2) concerning things I wanted to ask you
about was "sufficient resources," is that considered another term for funding or
money?
COUNCIL MEETING 12 AUGUST 3, 2022
Mr. Kimura: In this case, the resources were not actually
related to funding. It was the experience and expertise necessary to oversee the
duties that Roads Division personnel had to oversee, such as project management,
engineering backgrounds, et cetera. We understand that there were general
difficulties in finding and holding onto qualified personnel with those backgrounds.
Councilmember DeCosta: In the defense of the County and the
engineering hiring process, the County does not pay as great as private sectors. It is
really difficult to compete and bring in the best qualified people. I believe that the
County tries their best, with what they have, with the package and pay scale, but it
is almost impossible to compete with the private sector. We are lucky to have the
engineers that we have. I am letting you know that it will be an ongoing problem
unless we can raise funding to allocate towards salaries to attract more qualified and
higher paid engineers that are grasped to the private sector. Thank you.
Council Chair Kaneshiro: Are there any further questions from the
Members? Councilmember Cowden, you can ask your questions to Tyler or the
Administration.
Councilmember Cowden: Okay. It could be for Tyler or the
Administration. I have to say that something is working right. When I look at some
of our roads, they are in good shape, and I appreciate the design. We are also applying
for grants. Something is working right. We also have bad roads. How many
contractors do we have and what is their role in bridging this gap? When I read that
we basically have the responsibility and I am quoting this...it talks about how many
positions we do not have filled, but it says, "Based on the information provided to us,
this leaves roads responsibilities in the hands of two (2) employees. One (1) with
project management background and another with no project management or
engineering background." That is pretty stunning. I hope Michael Moule is on here.
If Troy or Michael wants to respond? As many projects that are happening and
working well...let us just start there because I have another question.
TROY K. TANIGAWA, Acting County Engineer (via remote technology):
For the record, Troy Tanigawa, Department of Public Works. I want to
condense the question a little. If I understand the question, right now, we have the
Roads Division infact. They are responding to regular maintenance type issues. As
far as road resurfacing and road improvements, we have a Project Manager who is
managing that operation and contract. We have one (1) contractor, Maui Kupono
Builders, who is the resurfacing contractor. They are progressing from district to
district to accomplish the roads that are listed in their contract for resurfacing and
reconstruction. The Engineering Division is accomplishing road improvements
through various contractors for road improvement projects like the ones you have
seen on Maluhia Road, Koloa Road, Kawaihau Road, Haua`ala Road, and Mailihuna
Road in Kapa`a. There are a lot of projects that are being accomplished. It is the
County's responsibility to ensure the residents have a good riding surface to drive on
and is safe. There are a number of roads that we need to get to, and we have people
working scoping work for these roads. We will have information for the next bid that
will go out projected for this year, for the next phase of IWR, and to continue the good
work that we have been doing for the past several years since GE funds have been
appropriated.
COUNCIL MEETING 13 AUGUST 3, 2022
Councilmember Cowden: We have a road, I am going to use Olohena
Road as an example, which seems to "blow out" a lot. I use that "colorful phrase"
because it blows out tires, wheel wells, et cetera. When we have a road like that, my
guess is the roadbed itself is not good. As much as that road gives up, is that accurate?
Mr. Tanigawa: Olohena Road is a collector road. Currently,
there is a project design going on now to construct the improvements to correct those
problems. We have engineers trying to work to finalize the plan specifications and
contract documents. Right now, that work is pending and in completion of the
environmental review. Anything else is in place. Once the environmental review is
done, the Federal Highways Administration will obligate the funds to allow the
County to start the project. In the meantime, road resurfacing crews are trying to
keep up with the potholes. We have leeway to do additional reconstruction work
during the interim if areas other than regular pothole patchwork.
Councilmember Cowden: Is there an engineer to help design that? Is it
a project manager, an engineer, who is it? What I am trying to look at...go ahead,
you can answer.
Mr. Tanigawa: For large complex projects, we have a project
manager who is a staffed engineer managing the consulting contract. These
consultants have experts that can come in and find solutions for complex issues and
problems. There is a design, and the design is complete. The rest of the puzzle
involves environmental work that is complex in a different way, but they have experts
to get through that. Right now, and from what I understand, we are waiting on
response from the State Historic Preservation Division. Once we get that concurrence
with the solutions we proposed, the project will go ahead.
Councilmember Cowden: Thank you for answering that. Who is the
contractor? You said Maui Kupono Builders. Do they do resurfacing, or do they do
the design work as well? Who does the design or strategy work?
Mr. Tanigawa: The IWR Project currently uses Maui Kupono
Builders, they are a construction firm. They do road resurfacing and roadway
construction. They have a different listing of roads and are on a different contract,
which they are attending to now. Olohena Road is on a different contract. We have
a separate effort to repair issues on that road.
Councilmember Cowden: I have a few more questions, but I want to let
other people ask questions. When we see that there is no SOP, it seems like that
should be a baseline. It was asked for in 2012, can you help me to understand why
we do not have that? It sounds like an urgency, why has this not been called to our
attention?
Mr. Tanigawa: Councilmember, could you repeat that?
Councilmember Cowden: When I looked through here, I saw that there
was a recommendation in 2012 and I believe I also saw another recommendation from
2007 for SOPS and having ways where we can track the money and performance.
This did not start with you, and you have not been in this position for that long. I am
not "pinning" you with this. You have been in your position for about a year.
COUNCIL MEETING 14 AUGUST 3, 2022
Mr. Tanigawa: Yes.
Councilmember Cowden: Why did anyone not say to us, "Hey, we need
help, we do not have enough people, we are not hitting the goals that we are trying
to get to," when you know that we are asking for an audit. I do not understand how
this has been allowed to be a problem for the last fifteen (15) years or more. It was
found in 2007, so I do not know how long it has been. Why was this not called to our
attention and why do we not have an SOP?
Mr. Tanigawa: I am not able to speak for decisions that were
previously made. I can tell you that in 2019, the Administration requested the audit
specifically for the Roads Division. They saw the influx of funds coming in from the
GET appropriation and there needed to be an assessment. Based on what was found,
the information that came from the audit was very helpful. They identified areas
that needed attention. They provided helpful information focusing on areas that
needed changes, so that the program could function the way it is supposed to. Also...
utilizing the funding properly given the restrictions on GE funds.
Councilmember Cowden: I am glad you brought that up. I will ask
one (1) more question, then let other people ask questions that might address some
of my other questions. It seems to me for a Councilmember or at the DPW, we have
two (2) responsibilities. One (1) is to ensure the roads are functioning. They are
imperfect, but they are functioning. We have that responsibility. The other is to be
accountable for the funding that we are getting and that we use it well. That part
lays heavier on the Council. I had a lot of anxiety reading this, because I never
expected it to come out showing...and I would frame this as if we are "winging it."
The good news is that we are winging it well. What makes me uncomfortable is in
how many other departments are winging it? Is this typical? When this did not have
any flags saying, "Hey, we need help and this is where we are behind," it makes me
think that is happening everywhere. I want to let you have a chance to respond to
that, and I will yield my time to my colleagues. I am sure they have good questions.
Mr. Tanigawa: The use of the funds and ensuring funds are
spent appropriately, we have a system within DPW that involves approvals at various
levels. We have a department head approval step; we have a step for prior to the
department head approving, our fiscal office looks at the expense. They are well
informed of the requirements, limitations, and what certain accounts can be used for.
With those checks in place, that is a daily method of assuring funds are spent
properly. They have project managers managing the different contracts. They are
also informed of limitations and funds being used for the purpose. We have
procedures placed at different levels. I found that has provided issuance of funds
properly and work related to contracts are performed properly and the funds are
appropriated before work is done.
MICHAEL A. DAHILIG, Managing Director (via remote technology): Mike
Dahilig, Managing Director. Councilmember Cowden, I am adding to Troy's
comments. The timing of the requested audit also reflected the fact that this, scaled
to explain in previous budgets, all moneys appropriated for road resurfacing was a
fraction of what we are getting now. In other words, the GET revenues are now
hitting twenty million dollars ($20,000,000). Before, the only money that was spent
on resurfacing was one million dollars ($1,000,000) here, and one million
COUNCIL MEETING 15 AUGUST 3, 2022
dollars ($1,000,000) there. A lot of that history was why the GET authority was given
by the State Legislature was exercised by the Council back in 2018. When we went
into bargaining in January 2019, it was important for us to understand these gaps
because the operation became that much more exponentially complex. When you look
at the finding in the auditor's report relating to SOPS on page 4, it was clear that
there was not any SOPs for GET projects or contractor oversight. This was a
brand-new taxation authority that was given. This audit is very helpful because it
was expected that our operation was going to become more complex. As you are
seeing through the years since that authority was exercised three (3) years ago, there
has been growing pains. Tyler has reflected that there has been a moving target in
some sense whereas we have been implementing, things have been corrected, things
have showed up, and some things still need to be addressed. I think that is why the
value of having the audits performed gives us that benchmark to reflect what is going
on. The case in point and when you look at the Waimea rock fall, having GET money
available helped to reprioritize and being able to take care of that quickly, given the
administrative aid was going out to there. As it has been pointed out, there are means
for us administratively to stand up, because we are not dealing with millions of
dollars in revenue whereas before we were only dealing with one million
dollars ($1,000,000) here and one million dollars ($1,000,000) there. I think we made
a point to agree with the findings because this is helpful for us to stand up a better
structure to reflect of the size funding now.
Councilmember Cowden: Thank you for that comment. If I may, what
I would like to see in the SOPS and the tracking of it is which equipment is used. I
tend to roam around and look in the baseyards. We have a lot of beautiful brand-new
big pieces of equipment. I will own the fact that I am not a heavy equipment operator,
so I do not even know what they are for. What I do look at, they are brand-new, and
they are oxidizing. Maybe they have been sitting there for two (2) or three (3) years,
it does not seem like they are being washed, cared for, or utilized. I am a little worried
that maybe we are buying equipment that is more than we need or...I do not
understand. I want to know when we buy something are we using it? I look at this
and when we sell the equipment. Do we buy equipment, sell it for ten percent (10%)
or fifteen percent (15%) on the dollar, ten cents ($0.10) on the dollar to some other
contractor? Why do we spend all this money on big pieces of equipment that I do not
even see getting used? I want to know what is being used and I want to make smart
decisions when we make these purchases and approving it at budget. I am dismayed
that not only are things not coming to us, but no one is looking at it, they are not even
creating this tracking of how we run projects and what utilized. Troy, I see you
jumping up. Do you have something to say? If not, I will let my colleagues have a
turn.
Mr. Tanigawa: Yes, I do. I would like to shed light on why
there was so much equipment sitting, rusting away, and unused. Previously, there
was a culture developed because there was a feeling that these vehicles could be kept
and used for parts, or they would be fixed and used as spares. A lot of them were
stored and stockpiled or staged and were never fixed. For whatever reason, the
workload was too much, or it was never fixed. We recognized this problem about a
year ago. We started to ensure that various divisions process their disposal forms, so
these pieces of equipment could either be auctioned while they are still in useable
COUNCIL MEETING 16 AUGUST 3, 2022
state and/or properly disposed. The area was primarily used for stockpiling or staging
these pieces of equipment. The area could not be used for any other purpose. We
started to work on that, and I think you will start to see areas that were populated
with rusting equipment, will continue to be cleared. There will be a need for some
old equipment, some will still be staged, but less than what you have seen in the past.
Councilmember Cowden: Okay, thank you. It is the new and unused
equipment that catches my attention. I want to yield the floor to others.
Council Chair Kaneshiro: Councilmember Chock.
Councilmember Chock: Thank you, Mr. Chair. Troy, the audit
outlines, as Councilmember Cowden mentioned, the need for SOP updates and
tracking means for data retrieval. I think I heard Tyler respond that there was going
to be an effort to complete this work in updating the SOPs by February 2023. I
wanted to clarify or confirm that. I also want to know how you intend to accomplish
that.
Mr. Tanigawa: We already put new measures in place. For
example, selection of roads to be resurfaced. Some of the changes made involve the
District Roads Overseers (DROs)providing input of which roads should be prioritized.
That is an example of some of the changes being made. We spent time with
stakeholders regarding legality, SOPs, and proper provisions to be useful in getting
the work done they need to do to keep everyone safe. Information for the SOPs would
involve the consultants. We will spend the time with staff to ensure this gets done.
Councilmember Chock: A few follow-up questions. When I hear you
mention stakeholders, I am assuming based on the audit, that includes staff, line
workers, employees, employee surveys, et cetera. That is the first question, and I will
give you the second question. Can the Council receive a listing of the policies that
you intend to put together that we can anticipate in the final draft of the manual that
will be completed in February?
Mr. Tanigawa: I will be happy to provide that list in response
to a written request.
Councilmember Chock: Okay. We will get that in writing, thank you.
Council Chair Kaneshiro: Councilmember Kuali`i.
Councilmember Kuali`i: Thank you, Chair. I am following up on
Finding 3, partially implemented recommendations. The second part talks about a
SOP manual. The Roads Division indicated that they have the resources available to
develop the manual, but the manual has not been completed. Can you say that the
manual is in the works, how far along are you, and when do you expect it to be
completed?
Mr. Tanigawa: We are going to complete our SOPS and
projecting for it to be done by February 2023. As far as putting the manual together
COUNCIL MEETING 17 AUGUST 3, 2022
and what will be included, we are working with the Roads Division to develop the
content.
Councilmember Kuali`i: The recommendation that was not
implemented, your response was that you would review it. It was a finding in 2012.
Today, you agree that this has to be done, right?
Mr. Tanigawa: Yes. We reviewed the audit. We will look at
our current conditions and work with the Administration to ensure that we address
those points.
Councilmember Kuali`i: I think it said something about establishing a
chart of accounts; are you getting assistance from the Department of Finance?
Mr. Tanigawa: Yes. We have been working with the
Department of Finance in areas that we need their input. We also work with our
Fiscal Office to help in those areas. We have resources available to us to complete
the SOP manual. We will try to get that to you by the February deadline.
Councilmember Kuali`i: Beyond the manual, the whole system you
need to set up, and I am assuming you need to comply with the State on reporting on
the funding received. Is that being done with the help of the contractors you are
working with? Are they keeping the data and helping you report back? I assume you
would have to give the State reports on what you are doing now.
Mr. Tanigawa: The reports that are deemed for financials,
that is something we do based on information from the project. We try to avoid doing
anything additional that is not involved with grant compliance. We follow reporting
requirements for particular grants from Federal Highways or from the loan programs
like the State Revolving Fund (SRF) program. If there are specific requirements, our
Fiscal Office generates information regarding reports. We have discussions to ensure
the requirements are clearly understood, so when it comes time to submit those
reports, it has the required information and format the grantor requires.
Councilmember Kuali`i: My last question. I heard you say that you
have the resources that you need. I wanted to say, we are here to prioritize and fully
fund implementation of what needs to be done here. A recommendation has not been
implemented for nine (9) years. If you need anything from the Council, can you tell
us?
Mr. Tanigawa: We definitely will. We have the resources
needed to assess what the implementation of the SOP. It will be required. At that
point, we will determine what resources we need to implement. We will definitely
come to the Council to discuss those resources.
Mr. Dahilig:Councilmember Kuali`i, in response as an
added item. An example of the commingling of funds back in 2012 was situations
where the repaving would entail work within County parks. The County parking lot
would be repaved, but there would have to a receipt, vouchered back, or separated to
ensure the effort that was being done by the contractor was not being charged to the
COUNCIL MEETING 18 AUGUST 3, 2022
Highway Fund. It made sense from an efficiency an accounting standpoint that
becomes a very gray area for us to potentially get into trouble if there is the potential
for restricted funds to be used for other purposes. The finding is that it has been
somewhat implemented from a budgeting and operational standpoint, I am stating
as much as possible to not comingle funds. If a situation arises where non-highway
type of improvement on the table for someone to catch while they are in the vicinity
of an area. If we do something like that, it is with the utmost care to ensure the
moneys and contract is separate. However, we understand that there needs to be
more vigilance in creating an outline for that. I think we take the finding as a
follow-up to be memorialized properly. At least operationally, we have been
migrating toward that type of operation to try to abstain as much as possible from
the commingling type of activities that could be classified as something that does not
meet the requirements for the funding that is being given.
Councilmember Kuali`i: Thank you. That is helpful.
Council Chair Kaneshiro: Councilmember DeCosta.
Councilmember DeCosta: Troy, I just wanted to reiterate what my
colleague Councilmember Kuali`i said. If you need anything, let us know. I may have
to disagree with your SOPS. I have called you twice regarding a few roads that needed
to be paved. You were very diligent on getting back to me with a response on when
Olohena Road was going to get done and when that road behind the old Camphouse
Grill in Kalaheo was going to be resurfaced. As we have discussed here, the most
important part that I hear is that there was an influx of money in 2019. Prior to that,
we operated with a very low budget. How can we do anything with one million
dollars ($1,000,000)? If I am recollecting as the newest Councilmember here, and
Councilmember Cowden and Evslin, you both have been here for only four (4) years,
I think we had a great change of personnel in that Division. I believe Mr. Suga left.
He was in charge of the Roads Division. We have a new person, Bryson, and I think
he is doing a really good job. We have a pick-up of Todd Ozaki who is also a new
employee. We have made some big changes in our operating personnel who are in
charge, and they have just started in the past couple of years. Let us not badger them
too much and give them the support that they need. That is how I look at it. Thank
you.
Council Chair Kaneshiro: Councilmember Cowden.
Councilmember Cowden: In response to that, Troy, I think you know
that I am not trying to badger you. I recognize that you stepped into this and that
every business and organization right now is threadbare in terms of having enough
people doing the job. What I get concerned about is...we just came back from two (2)
National Association of Counties (NACo) conferences in the past four (4) months and
almost all of these grants that are coming out are competitive grants. When we do
not have good paperwork in place or tracking on how are doing our funding, I worry
that we cannot then get those competitive grants. We did get that Transportation
Investment Generating Economic Recovery (TIGER) grant that was a big gain. We
are trying to get a grant for Po`ipu Road. If we do not have good financial tracking,
is there any claw-back vulnerability for core tracking? By claw-back I mean that the
COUNCIL MEETING 19 AUGUST 3, 2022
Federal Government will ask us for the money back. How are we dealing with that
and are we looking at that?
Mr. Tanigawa: We do. When we receive grants like that,
there are a number of people involved. It is not just DPW. The Department of
Finance is also aware of the grant and reporting requirements. In addition to the
data collection that the Department does when we manage and administer those
projects, including collecting data from the contractor, making sure submittals are
approved by the designer, et cetera, the designer makes sure that the materials being
provided comply with specifications. That is one of the first things that the grantor
looks for. Do the materials that you incorporated into your project meet contract
specifications. That is the basis of a lot of Federal funds being obligated. We pay
close attention to those details. The submittals get approved and recorded. That
becomes a part of the record. The expenditure of funds for various improvements in
the project is another thing that closely tracked. Most of these Federal projects
incorporate unit pricing into the contracts. There is accounting a lot of times on a
daily basis by our construction managers. They take measurements and they
incorporate all of those details into the support that goes into the pay request. It
starts from the very ground level on where the project is being implemented to be
sure that accurate and appropriate records are kept to be able to comply with the
grant requirements. Once those pay requests are approved, our Fiscal Office does
their checks to be sure that contract provisions and pricing is being followed. Those
expenditures are put into invoices to request reimbursements from the granting
agencies. There are checks every step of the way before quantities get expended.
Based on the system that we are using, I found it to be very successful during the
time that I have been here in this seat. We minimize non-participating expenditures
to the greatest extent, and I am not aware of Federal funds being de-obligated from
projects. I believe the system works. It is not to say that we do not have to pay
attention. I believe it is absolutely necessary that we remain vigilant. We have new
staffing coming in that require training. They get the training to make sure that we
continue operating the way we are to ensure that the County gets the biggest bang
for its buck and also continues to have the maximum participation from granting
agencies.
Councilmember Evslin was noted as not present.)
Councilmember Cowden: Thank you. My final question...I am not sure
if it is for Director of Finance Reiko Matsuyama or Managing Director Mike Dahilig.
That question would be, are we having blowback from these deficiencies? Are we
running into problems anywhere? Is it coming through to the Department of Finance
accurately and nonproblematically? I just want to hear from the other end. Are you
all good? Even if we did not meet what was being looked for, are you experiencing
problems from these deficiencies.
REIKO MATSUYAMA, Director of Finance (via remote technology): From
what I can see, no. We do track grants and the compliance that is done and required
on behalf of grantees or grantors. I would say no, to the extent that we know of. We
do not see this as creating issues for us.
COUNCIL MEETING 20 AUGUST 3, 2022
Councilmember Evslin was noted as present.)
Councilmember Cowden: Okay. Thank you. Mike, any final comments?
Mr. Dahilig:Sorry, was that directed at me,
Councilmember Cowden?
Councilmember Cowden: Yes. I did not know if you had any summary,
because ultimately, the Office of the Mayor is responsible for all of this. Are you
largely satisfied with the work that has been achieved by the Roads Division and this
is something that needs to be corrected and not too problematic? Or has this been a
weak point that we are not aware of here at the Council?
Mr. Dahilig:I think it is a work in progress. As the
Director of Finance and the Acting County Engineer mentioned, it is something that
we need to implement as a normal discipline rather than an on-demand type of
situation. I think for us, given that it is an overlapping type of scenario that you
pointed out, it has also been brought up in the Annual Comprehensive Financial
Report (ACFR) from previous years, these fiscal matters need to be done like
clockwork rather than as you quoted previously, on an on-demand or waiting type of
situation. We are making progress in this area, but I think there is more that needs
to be done. We have regular conversations about that. I think as we look forward to
the financial audits that will be starting as we speak right now, some of these things
will give us a report card into how we are doing, and we can make adjustments.
Councilmember Cowden: Thank you.
Council Chair Kaneshiro: Are there any further questions from the
Members? Councilmember Carvalho, then Councilmember Evslin.
Councilmember Carvalho: Mike, the GET, now that we are receiving it,
can you explain a little more on that? I know back then like anything else, we had to
deal with a lot of disaster situations throughout the whole process, we needed
additional support elsewhere too. I just wanted you to touch base on that a little bit.
Mr. Dahilig:When the pandemic hit, it was very clear to
us that one of the things that would help stimulate the economy was making sure
that we got out as much construction as possible during that period. Given the
amount of money that was coming in for GET, it seemed to be a logical indicator for
us to ensure that whatever we did, that the contracts for road resurfacing continued
to be pumped out at the budgeted amounts to make sure that we are getting every
dollar possible circulating into our economy. That actually helped from a discipline
standpoint to get our bearings and finding efficient and accountable ways to get these
contracts managed, get the roads identified, and be able to not have a lag in
expenditure. That is where ultimately it has turned out to be a blessing in the sense
that a lot more of our roads are getting reconstructed. A lot more investment is being
made in the condition and the upkeep of our roads. We are migrating towards a
culture of preventative maintenance as the ultimate objective, rather than a full
teardown and reconstruction of the road since many of our roads are in that state
COUNCIL MEETING 21 AUGUST 3, 2022
right now. The work is not done. Ultimately, when the GET moneys were passed
back in 2018 by the Council, it was with the understanding that even the ten-year
event horizon of authorization from the State Legislature would not necessarily be
able to cover all of the deferred maintenance that was approved across the whole
island when it came to our road infrastructure. We are making headway and we are
making progress. I think at each turn, we get feedback and adjust. I think that is
why we value these audits as a way to make further adjustments to ensure
compliance and efficiency with those dollars that are spent. There is a responsibility
that we feel that the Council took that chance and adopted the GET back in 2018.
Not all counties did it. To honor that authorization, we need to make continued
adjustments. That is why we saw the audit back in 2019 as valuable. We had an
operation that all of a sudden was going to, by itself, be larger than most of our
departments, just in this one (1) area. That is where I think it serves us well to have
dialogue like this to keep us accountable.
Councilmember Carvalho: Thank you. I just wanted to touch base on the
funding issues back then. Now with this opportunity we can take things to the next
level. That is good. Thank you.
Council Chair Kaneshiro: Councilmember Evslin.
Councilmember Evslin: This question is for Tyler. Are you still there?
Mr. Kimura: Yes.
Councilmember Evslin: This might be for Troy as well. I had hoped
that the audit would contain more actual performance measurement. Perhaps it was
not part of the scope of the audit. You do certainly reference throughout the audit
that that is something that is lacking from DPW, this performance measurement of
their efficiency. You cite some examples from other places, tracking the time to fill a
pothole as one (1) potential measure. There are also some references to the cost per
mile of resurfacing over time. I think every year during budget I have requested the
cost per mile for resurfacing. Part of the answer from DPW, which seems rational as
far as cost per mile of resurfacing, is that it is not really a good performance indicator
because the condition of the roads can vary, and the topography can vary so much. It
does not tell us so much as we see the fluctuations in cost per mile. Even the figures
that you provided that looked at other places that tracked the time it took to fill a
pothole, maybe it is a performance measurement, but it does not tell us anything
about efficiency and it could have some perverse incentives if you are just rushing out
to do single pothole filling and not chunking large sections of the road. I just wanted
to get a better idea from you on what some effective measurements could be that you
feel DPW should be tracking and reporting on regularly.
Mr. Kimura:Sure. As you mentioned, we do mention other
audits that were done in other jurisdictions on the mainland, that did note that the
good things that those departments were doing were that they were able to track the
amount of work that they did in-house. You are right, it is not going to be perfect,
and it is not going to be "apples to apples" for all different jurisdictions, particularly
with road conditions, the types of roads, et cetera. It is just a way for the Roads
Division to track for example the types of complaints that they get, the amount of
time that it takes to address those types of complaints, whether or not they have the
COUNCIL MEETING 22 AUGUST 3, 2022
resources in-house to be able to do that, et cetera. We noted that the Roads Division
is responsible for quite a bit of different responsibilities. In addition to taking a look
at which roads need to be resurfaced, they also respond to complaints from the public
about potholes, but also debris on the side of the road, blockages in signage, et cetera.
Right now, what they do is they receive complaints as they come in and from there
assign them. Figuring out how long it took, what resources were used, what the cost
of those were, et cetera, those are metrics that were not tracked. There is a variety
of different metrics and measurements that can be implemented. Those are just some
of the examples. The Roads Division is spread thin with their personnel and so being
able to efficiently and effectively identify where those needs are and to be able to go
back and track what they have accomplished in the past year, how long it took, what
resources was used, and what were the costs, those are the types of things that we
are recommending that the Roads Division take a look at for future budgeting on
what could be improved on.
Councilmember Evslin: Okay, thank you. Part of the answer there is
that it is just complicated. We have to look at different measures and outcomes.
There is no simple formula that we can use to track the efficiency of our Division.
That may be a follow-up to Troy. I was wondering if you folks have any specific
indication of what types of measurements you hope to be able to track and report on,
such as regularly track complaints or time to fill potholes, et cetera?
Mr. Tanigawa: That is something that we are going to be
tracking closer is our response time for complaints. Like Tyler indicated, we are going
to be developing metrics like the response time, quantity of materials used, and we
will be working closely with the baseyards to narrow down that list. We also have
new tools that will be available. There is some software that is currently being
introduced to the County and is under development that has shown a lot of promise
in giving us better capabilities to help us track these things. We are looking at further
developing our use of those tools.
Councilmember Carvalho was noted as not present.)
Councilmember Evslin: Just as Tyler had mentioned, tracking the
complaints to me sounds a good way to get at how we are doing. Anecdotally, I feel
like when we first came on Council we were flooded with pothole and road condition
complaints, and I feel like the pace of those E-mails has declined precipitously as our
roads have improved. I do feel like if we can track complaints well, it should give us
some idea of the condition of our roads as our complaints have slowed down over time.
Thank you, Troy and Tyler.
Council Chair Kaneshiro: Council Vice Chair Chock.
Councilmember Chock: I have a follow-up to that question. This
question would be directed to Mike. For years we have talked about tracking
complaints and how they come through. For sure the Council receives its share of
complaints, which we typically forward to the Administration because of our
individual capacities. I know that we have a tracking form through the Office of the
Mayor and the Administration's side receives many of these that categorize them and
sends them out appropriately. I am curious if there can be some overlap in assisting
COUNCIL MEETING 23 AUGUST 3, 2022
DPW. I am sure it gets there from your side, I am just not sure on the cohesiveness
of that. Rather than duplicate some process, there would seem to be an avenue for
us to explore how it is we can all be a little bit more informed and thus accountable
to how it is these complaints are followed through on.
Councilmember Carvalho was noted as present.)
Mr. Dahilig:That is a good question. Typically, when we
get complaints as intake into our Office, we typically will forward the item to the
direct department.for disposition and expect that communication be maintained
between that department and the person that is making the contact. If we get a
complaint a second time to our Office that relates to the same item, then that is when
we start getting involved and wanting a degree of enhanced accountability in terms
of why there was not any follow-up or had not been addressed. We do not have a
master tracking from start to finish within our Office. We look at it more as an intake
and pushing type of situation. With additional software, it provides us an opportunity
from a holistic standpoint to take a look at overall performance. Simply counting
potholes filled is something that from an operating procedure standpoint, we need to
and have started to instill that discipline with our Roads staff to take a look at what
they are doing, including tracking miles paved, monthly miles sealed, and those types
of things. It is one thing to get the data, but it is another thing to put it into context.
As Councilmember Evslin did point out, we also need to collect data that is
meaningful for us to see if we are above or below the curve. I think that type of data
as it gets closer to the ability to mine, will help us here in our Office be able to talk in
a big picture way about accountability and whether or not we are hitting targets.
Typically, we leave the day-to-day response times to individual complaints, we are
relying on the individual departments. This is kind of the procedure across the whole
County to be able to timely dispose of it. We do not prescribe a specific time period
because as you know, there are varying calls or types of coordination between the
Department of Finance, Planning Department, and even the Fire Department, may
take longer. What we do expect is that if we do send something out, there would be
a touch within twenty-four (24) hours of us getting something over to a different
department.
Councilmember Chock: Thank you.
Council Chair Kaneshiro: I have a follow-up question from
Councilmember Cowden.
Councilmember Cowden: When we are thinking about roads safety and
avoiding fatal accidents, right now we are in the middle of August and peak growing
season. I believe the maintenance of the sides of the roads is a part of it, right? We
are seeing that the guinea grass has grown so much. On the curves it is a problem.
I have gone to look because I have been getting complaints. I see that the guinea
grass has grown over and obscured the curb, road signs, and the lower speed limit
signs. I just want to be acknowledging that that is another less quantifiable
challenge. That is very important in terms of not running over that cyclist who is
going into the lane. There are a lot of problems with that. People are crossing the
COUNCIL MEETING 24 AUGUST 3, 2022
center line to avoid walkers. How big of a maintenance issue is that for you, Troy?
That might be something worth measuring.
Mr. Tanigawa: You are correct, Councilmember Cowden.
Guinea grass is a concern, especially during the summer months when we have a lot
of sunlight. The grass seems to grow almost overnight. We continue to work with
the crews to find some solutions and to make sure that crews get out to areas where
the grass is close to the road and address that before it causes problems. We have
not received guinea grass complaints recently to my knowledge, but I have been on
roads and have seen it. We have identified areas and contacted the baseyards directly
about it.
Councilmember Cowden: Okay, thank you.
Mr. Tanigawa: To add to what was being discussed a little
earlier about responding to complaints, another piece that I think would be of interest
is the follow-up that we are going to be making sure it is also a piece of the system
that we end up with, is to have information go back to the initial entity, be it the
Council or another division or department to follow-up with them to let them know
what was done and when it was completed.
Councilmember Cowden: Okay.
Mr. Dahilig:Just as an added item, most people do not
really bother with whether a road is under our jurisdiction or State jurisdiction. A
lot of times, at least from our Office, we will get guinea grass complaints about items
related to roads within the State's jurisdiction. We regularly contact the State
Highways Kauai District Office and they tend to be very responsive anytime we call
and forward a complaint about something that relates to a guinea grass situation
along a thoroughfare along their jurisdiction.
Councilmember Cowden: Thank you. I will just give a shoutout that the
Koloa Road curves need to be looked at. Thank you.
Council Chair Kaneshiro: Councilmember DeCosta, did you have a
question?
Councilmember DeCosta: I was waiting for final discussion.
Council Chair Kaneshiro: Okay. Are there any further questions?
Councilmember Kuali`i.
Councilmember Kuali`i: Mike, when you were talking about
efficiencies with the dollars being spent and we were talking about accountability to
the grants, I think the bigger picture is with accountability to the taxpayers, right? I
know there is a publicly available schedule that is posted of upcoming roads that are
being maintained and people can put in requests to get on the list or be reviewed. Do
we at least maybe once a year put out a report publicly that tells the different funding
sources, how much money in that year came from GET, how much came from the fuel
COUNCIL MEETING 25 AUGUST 3, 2022
and vehicle weight taxes, and maybe other sources, and then basically how that
money was spent? It could be just a basic overview. "X" miles of roads paved, sealed,
et cetera. I think that would also be helpful for the public at large. I think especially
after today's audit, right? This is sounding alarms and people will be overly
concerned or worried. Maybe you can help give assurances by putting that
information out there. Maybe you already do that. I do not know. I am asking.
Mr. Dahilig:These are statistics that I think you are
describing, Councilmember Kuali`i, from a communications standpoint, we could do
a better job at posting either infographics or "self report cards" that would show the
roads that we addressed for the year and what we accomplished with what moneys
and how many miles and potholes we addressed, et cetera. I think that is a good
objective and does not seem too hard to try to do. We just need to make sure that our
inputs are accurate, and we are disciplined internally to make sure that those things
are tracked so when they are pushed out, they are accurate. That for us, provides a
retrospective trend that may be helpful for everybody. One of the things that becomes
a consequence of us being able to put roads in better condition, we have less potholes
to patch and less to maintain from a crack and those types of situations if we are
making these investments upfront. Seeing that trend go down where the potholes
are less and less, are the things that we need to communicate to the public as a
secondary consequence of success if we are doing things properly, rather than seeing
more potholes being filled. That means that our roads are not in good condition. That
type of trend analysis would be helpful for us to put on our websites as simple tables
or infographics, and we can definitely work with our Roads team to see if we can get
some basic information up that reflects what you mentioned.
Councilmember Kuali`i: Thank you.
Council Chair Kaneshiro: Are there any further questions from the
Members? If not, while the rules are still suspended, we will take public testimony.
Is there anyone in the audience wishing to testify? Alice.
Ms. Parker: He just mentioned website and graphics.
Could you please print things? This is "Analog Alice." I touch computers and they
die. Guaranteed. Ask all the stores around here. We too want to be updated. Thank
you.
Council Chair Kaneshiro: Thank you. Is there anyone else in the
audience wishing to testify? Lonnie.
Mr. Sykos: My thanks to the auditor. It appears that we
as the public got our money's worth. Thank you very much. Great job. To the
Department of Public Works and especially the Roads Division, tip of the hat. My
extreme gratitude for the great job that you are doing. I have institutional memory
which this body does not. Going back to 2005 or 2006, there was...and I will use Mel
Rapozo, Councilmember and ex-Council Chair, who I am either going to quote or
paraphrase...there was never a single year that the Administration came and asked
for more money for paving. Not a single year. Number two, you even gave great
words for Mr. Mickens. Glenn Mickens and Mr. Rosa came here for twenty-three (23)
COUNCIL MEETING 26 AUGUST 3, 2022
years in a row and explained to the County Council and DPW why they were paving
the roads incorrectly and the pavement fell apart. We incorrectly paved our roads for
two (2) decades, so there is no wonder why the pavement fell apart. We hired Larry
Dill. Larry Dill at his second time before the Council told us that Mr. Mickens and
Mr. Rosa were correct. Tip of the hat to the guys that do all the labor because they
changed. They now correctly lay the asphalt down. They struggle with not having
enough people. The engineering for all of this is a real specialty. Another tip of the
hat to them for bringing Maui Kupono Builders over here to pave. I lived in Hana for
twenty-five (25) years. I watched the State three (3) times pave Hana Highway. The
first two (2) times they brought over companies from Honolulu. The first one was a
disaster. The pavement just fell apart. The second time, they put so much pavement
down, they changed the waterflow and the highway was getting destroyed by the
water no longer flowing where it was supposed to. Then they hired Sonny Vick's
Paving, Inc., which turned into Maui Kupono Builders. They paved it and fifteen (15)
years later, ninety-nine percent (99%) of the pavement is still in good shape. They
got a good contractor, and I am very happy with all of the changes that have occurred.
I am very happy that they are proactive about developing the information we need to
become more efficient in the future. I will take my next three (3) minutes.
Council Chair Kaneshiro: Is there anyone else wishing to testify on this
item? Bruce.
BRUCE HART: This audit is long overdue. I just want to say
that I am glad that it is finally done. The roads are in a mess, the ones that are bad.
Olohena Road is so bad that I consider it unsafe to drive at night. I see the problems
and we have seen them for years. It does not seem to change. I have been here long
enough. I was here and heard Mr. Mickens. I have heard others. I have heard you
all. I do not really understand, I am not on the inside, and I do not want to blame
any one (1) person. It sounds like a problem across-the-board, and. it involves
everybody. Back several years ago, pre-COVID, there was some company that came
through and evaluated our roads. It was printed in the newspaper, and we had the
worst roads in the nation. I want to switch over and see it from a different
perspective. We are a small county, and we have a limited number of resources to be
able to fix roads. The cost of fixing roads is astronomical. It is out of this world. I
want the public to understand that too. That is a big part of the problem. I think we
need to all roll up our sleeves, do the work, and do whatever is necessary to provide
roads that are safe. Thank you.
Council Chair Kaneshiro: Thank you. Is there anyone else for the first
time testifying? If not, Lonnie.
Mr. Sykos: I want to thank the Councilmembers who took
the time to read all of this and think about it. They got out into the weeds to look at
what are the unintended consequences that are going on today because of the actions
or inactions of the past. Several of you, I believe, brought up the fact that the lack of
SOPS raises the question of whether it is isolated to this Division within the
Department or if it is isolated to this Department and how widespread is it. Again,
sitting out here for the last fifteen (15) years, I would be shocked if anyone except the
Police Department had a functioning SOP. The Police Department would have one,
because it was required as a part of their national certification. However, for the rest
COUNCIL MEETING 27 AUGUST 3, 2022
of the County, this is a reflection of the serial ongoing failures of our Department of
Human Resources (HR). I appreciate that our Mayor has made some changes and
has tried to address the failings of our HR system, but it basically has not changed,
and HR has to take the lead in the creation of these manuals for every single employee
and manager, because there has to be a commonality thread to keep everybody legal
and on the same page. That does not occur if each division and each department
write their own manuals. This is a collaborative effect and act to do this. We get into
an issue of which we are talking about systems. When you have systems, you hire
contractors perhaps that are system innovators and designers, so they help you figure
out what it is you want to accomplish and how to do it. Then you hire a completely
different set of brains to implement the system. Then a complete different set of
brains to operate the system. What we are critically lacking in our departments and
especially in HR is the capacity to innovate, design, and implement systems. Our
managers could manage a functional system. They just do not have functional
systems to manage. This is a failure of HR, and it needs to be addressed.
Council Chair Kaneshiro: Okay, thank you. That is your time. Is there
anyone else in the audience or on Zoom wishing to testify? None. With that, we will
take our ten-minute caption break and we will come back with any final questions
and discussion. Ten-minute caption break.
There being no objections, the meeting recessed at 10:35 a.m.
The meeting reconvened at 10:45 a.m., and proceeded as follows:
Council Chair Kaneshiro: Welcome back. We took public testimony.
Are there any further questions from the Members prior to discussion?
Councilmember DeCosta.
Councilmember DeCosta: I want to address Mr. Tanigawa. Troy, I want
to thank you for your diligent work. I only had positive experiences with you as our
Department Head Engineer. I wanted to ask you, Troy, when we pave our County
roads and there is an approach into someone's driveway, that the corners of the
driveways have deeper potholes because of the rain, especially in the mauka areas
like Olohena, Kalaheo, Lawa`i, Kalihiwai Ridge, do we assist those residents with
cold patch, so they do not need to get their shovel and rocks, do we have a standard
operating procedure to address that? I know it is not a County part of the road, and
we only surface up to the driveway entrance, but if on the sides of it has deeper holes
that could impact a grandma's car coming up the driveway, do we assist those
families?
There being no objections, the rules were suspended.
Mr. Tanigawa: Typically, what happens is, like you indicated,
the County will pave up until the road right-of-way, but what I have seen in the past
is residents can typically take advantage of the contractor being in the area, and we
put them in touch with the contractor, so they can work out the details of any
improvements outside of the right-of-way that would benefit the property owner, and
they pay for it with their own dollar.
COUNCIL MEETING 28 AUGUST 3, 2022
Councilmember DeCosta: The next question I have, you and I
corresponded really well on this, but about six (6) months ago, there was guinea grass
before the Kalihiwai Bridge going north to Ha`ena and there was a traffic accident, I
remember addressing that with you, did we take care of the tall shoulder of guinea
grass approaching the bridge?
Mr. Tanigawa: Councilmember DeCosta, can you restate that
location again, I missed that.
Councilmember DeCosta: It was prior to the Kalihiwai Bridge, I believe
the road turning up to Kalihiwai...
Councilmember Cowden: It is called Kahiliholo.
Councilmember DeCosta: Thank you, Councilmember Cowden for that.
A couple of calls came in saying that it was a bad accident, and the guinea grass was
really tall.
Mr. Tanigawa: Kahiliholo.
Councilmember Cowden: That was Kalihiwai Road.
Mr. Tanigawa: Our crews have addressed the areas within
the County's road right-of-way. For anything that might overlap with the State,
sometimes we might help, but in this case, I am not sure what happened, if there was
anything in the State right-of-way, but I do know the State has been in that area also.
I believe those areas were addressed.
Councilmember DeCosta: Thank you.
Council Chair Kaneshiro: Councilmember Kuali`i.
Councilmember Kuali`i: Troy, in your comments earlier you said you
had something about folks out scoping road maintenance needs before the next bids
go out, when are the next bids going out for road work?
Mr. Tanigawa: For islandwide road resurfacing, is that what
you are referring to?
Councilmember Kuali`i: Yes.
Mr. Tanigawa: That bid should go out before the end of the
year, or at least the projection is to go out some time in December.
Councilmember Kuali`i: Typically, how often do bids go out? Once a
year?
Mr. Tanigawa: No, we have actually been able to utilize our
existing contracts with change orders. We have been working with the purchasing
department, that was the most efficient way to continue the resurfacing for the past
COUNCIL MEETING 29 AUGUST 3, 2022
Fiscal Year; however, we have been able to get the sufficient resources to rebid
resurfacing. We understand that there may be additional competitors entering the
market and that is something that we would like to try and take advantage of and
get competitive pricing.
Councilmember Kuali`i: I was curious about that. When we put out a
bid, how many responses do we typically get? I guess you are saying now that we
anticipate more, because there is potential additional competitors entering the
market.
Mr. Tanigawa: Yes. Typically, in the past there were just
two (2) respondents, and the disparity in pricing was significant in the past. Now we
are informed that separation could be a lot smaller and getting information that it is
becoming a competitive market again.
Councilmember Kuali`i: Thank you for your work and everyone there
at Public Works Roads Division.
Council Chair Kaneshiro: I have a question. Troy, this may be for you
or Mike. I remember not too long ago, Keith Perry, I used to bug him on roads, as far
as requesting an inventory of what is getting done, how much we have spent, and he
actually showed me a copy of what the County was working on, as far as the
geographical information system (GIS) maps with the roads. Mike, do you have any
more information on that piece of information that I saw from Keith? I think when
he showed it to me, it was preliminary, but I thought that is exactly what people
would be looking for, as far as something that is easy to find, see, I believe it showed
roads that were done, roads that were in process, roads that are to be completed for
that year, and it was in GIS. Mike, do you have any information on that? I think
that was a lot of the questions that people are talking about; going back to see this
road inventory.
Mr. Dahilig:Council Chair, in response and as I have
mentioned to you during the break, in response to Councilmember Kuali`i, I have not
brought up some of the items that we have been working on simply because we are
still in beta testing, but when the Mayor came into my office he said, "Let us give
them an idea of what is going on with the technology in terms of reporting." I am
going to share my screen briefly and the Mayor will explain what we have been beta
testing as feedback for public consumption, as well as accountability with all of our
employees. Are you able to see that?
Council Chair Kaneshiro: Yes.
Mr. Dahilig:I have the Mayor here for explanation.
DEREK S.K. KAWAKAMI, Mayor (via remote technology): Good morning,
Council Chair, Vice Chair, and Councilmembers. Hello, to the Council Services Staff.
We want to thank Spire, and we want to thank the Council for conducting this audit.
Our Administration views audits as a necessary tool to be able to identify areas where
we need to make improvements, so it is a good way to get a third party to take a look
COUNCIL MEETING 30 AUGUST 3, 2022
at our operations and make these types of recommendations, and it also helps to
identify areas where we are doing a good job, so we are very thankful. I was
monitoring the conversation and I was able to review some of the findings, and when
we talk about tracking progress, how do we track how money is spent; we were just
briefed from the Information Technology (IT) Department and the Roads Division
management team brought me downstairs to give me a look at what I have been
asking for, and what I have been asking for is what Councils have been asking for,
just a basic, easy way for members of the public and the Administration to be able to
access information very conveniently. What you see in front of you is what we call
the Land Information Management System (LIMS) upgrade. When we came in, we
realized that our IT infrastructure was antiquated and we wanted to modernize our
technology to be able to keep up with the 21st century, and the expectations that our
constituents have, as far as government transparency, and I want to thank the
Council for appropriating funding for these types of tools. This is a beta version of a
tool that we will all be able to use, and as you can see, we are looking in the K51oa
District, and the color codes different County roads. The green will show that those
roads are completed. Of course, it is a work in progress, because Maluhia...I am
sorry, this is Waimea District. The green roads will show that it is complete. Red
will tell members of the public, the Administration, and Councilmembers that this is
in progress, and if you see a road in orange, it is scheduled within three (3) weeks,
and anything in purple is pending. It also identifies our bridges, because one thing
that is becoming very apparent is that with our aging infrastructure, we have a
number of bridges that need to be worked on immediately. So, for everyone's
knowledge, we also layered on the condition of our bridges, so if you see a bridge in
green, it will tell you it is good, if it is in orange, it is telling you it is bad, and
unfortunately, if you see a bridge in your neck of the woods that is color-coded in red,
it is critical, so it has become a point where it needs to be addressed with urgency.
Furthermore, it gives people information as far as how many miles have been paved,
so at the top right, you will see that forty-three-point fifty-one (43.51) miles out of one
hundred-point twenty-six (100.26) lane miles have been paved since 2020. It gives
the amount that we budgeted, so that will give the members of the public and the
Council the total amount of appropriations, then it tells you how much we billed to
date, means how well of a job we are doing, getting projects out, going through
procurement, and then getting money to projects and getting these roads resurfaced.
I think back at my time sitting in the same seat you folks are sitting in, and I cannot
help but to think about a special person that meant so much to the Council, and he
will go down as a legend, but for years Glenn Mickens addressed the Council about
how County roads should be repaired. It was just a budgeting and revenue issue at
the time, we just did not have the types of funds that the GE tax has brought. I think
that Glenn Mickens would take a look at how we addressed roads and our resurfacing
program, and I am sure he would have more advice from us, but I think he would say
that we are moving in the right direction. So, this is another tool that I think will
help to address some of the findings and the audit. Like I said, it is a beta test, but
it is close to being able to go live, and it does not stop here. This will be able to flow
down into engineering, building permits...the amount of capability that this system
has, we eventually can fold it into parts, so that people can know which park we
mowed, and which trees were trimmed. So, it is a tool that is worth its weight in gold,
as far as giving us a snapshot of our performance, but also and more importantly,
COUNCIL MEETING 31 AUGUST 3, 2022
letting the members of the public have a tool at their fingertips to be able to see how
their County is doing. Thank you very much, Councilmembers.
Council Chair Kaneshiro: Thank you. Are there any further questions
from the Members? Councilmember DeCosta.
Councilmember DeCosta: This could be a question for Mike or Troy. I
was concerned about roads in limbo. I believe I went out with Troy and Deputy
Engineer Gayagas to look at the Lawa`i Cannery Road in limbo, and it was in bad
shape, from my recollection, there are eleven (11) or twelve (12) residents that have
trash pickup back there. Do we have a SOP in place for these roads in limbo, because
I have dealt with the State and they can say it is not our road, the County can say it
is not our road, but those residents are our residents; can we address the roads in
limbo, and if so, that road specifically the road in Lawa`i behind the cannery?
Mr. Dahilig:In response, Councilmember DeCosta, this
has gone on for decades, and it has been such an issue that even the State Legislature
had to commission reports on where the status is with the roads in limbo type of
situation. I can say this, not every road is the same when it comes to a discussion of
what is a limbo road and not. Sometimes it may involve the underlying landowner,
sometimes it may involve what was done in the past by previous Public Works
Administrations or vice versa in terms of what the Department of
Transportation (DOT) had done with certain County roads, so when the County was
created, that is where the State Legislature had to divide the assets between the
County and the State, and it still has never perfected that divorce properly. I can say
this in general, if there is a safety concern, we will go ahead and take care of the item,
that is simply what we will do to make sure that it is up to a safety type of situation,
and if there is a complaint about a pothole,we will fix the pothole, or if it is a guardrail
type of situation that is going to be something that we take care of, but when it comes
to the overall ownership of the road, the reason why we abstain from exercising
broader ownership types of activities is that it incurs liability. For example, we do
have roads in limbo that sit above dams throughout the County, and that is a broader
type of discussion with Department of Land and Natural Resources (DLNR) about
who is responsible for dam safety. That is why each of these roads in limbo types of
issues are handled on a case-by-case basis, so there is not, as you asked, a countywide
policy as it addresses at least the future ownership of the asset, but if there is
something that is a very glaring health and safety concern, even though it may be a
State issue, we will just take care of it, to take care of it, just like we did with the
Waimea river mouth where that is a State asset, but if we do not do something, we
are going to have to take care of the flooding, so we will just do it, and take care of it,
but in terms of long-term ownership, we do not have a countywide policy, because it
would be difficult to fit the landownership types of scenarios on a case-by-case basis
into something broader.
Councilmember DeCosta: Mike, I appreciate that answer. I think you
did answer eighty percent (80%) of the question. You did tell me about fixing a
COUNCIL MEETING 32 AUGUST 3, 2022
pothole, and you did tell me if it was about safety, you would address and fix it, but
that last twenty percent (20%) you did not address was, those residents who live back
there on that road in limbo, they still want to know, how will my road get paved?
Council Chair Kaneshiro: This may be an item for another agenda item,
but I know roads in limbo is getting away from the agenda item of the audit, so I do
not want to go too much further on roads in limbo, because we are getting away from
anything in the audit.
Councilmember DeCosta: We were asking about paving and how do we
get miles per paving on the road, and if roads in limbo would qualify for that assessed
value of miles per pavement, that is why I threw it in there, when do we have time to
ask these questions? I will refrain from asking more questions. Thank you.
Council Chair Kaneshiro: On roads in limbo. Are there any further
questions? If not, I will call the meeting back to order. Is there any final discussion
from the Members? Councilmember DeCosta.
The meeting was called back to order, and proceeded as follows:
Councilmember DeCosta: Thank you, Council Chair. I wanted to say, I
think we are doing a great job with the money we have allocated since 2019. I thought
the former Mayor did an excellent job prior to 2019 with the little amount of money
he did have with the transition of positions changing, I think we are doing a really
good job with personnel. It is very difficult to get people from the private sector to
work for the County when the funding of their salaries is not matched. I want to let
everyone know one thing too, we live in the tropics, I do not think we can measure
price per mile, paved roads, to no place else in the world. Where do we take a county
of seventy thousand (70,000)people in the miles of roads that Kauai has and measure
it to Las Vegas, Nevada, Wyoming, or let us go to a more rainy state like Seattle, so
I think we are doing a good enough job that we can, and I am expecting to see a little
better. Thank you for the great work that you folks are doing out there, Troy and
your department, and Mike and the Administration.
Council Chair Kaneshiro: Councilmember Cowden.
Councilmember Cowden: I am really glad that we got this audit
finished. I am glad it showed us where we have gaps and what we need. As I was
driving to work today, I was saying, well, something is working because I am driving,
and I know we have problems, but I am glad that the true performance of getting our
roads in running order is not a reflection of this paperwork and standard operating
procedures that are lacking. We can do better in terms of that administrative
element, but I am glad this was done. Also, I want to thank the Roads Division
because we have very few people in the County, now everyone is threadbare. We
learned in National Association of Counties (NACo) how threadbare some of the
others are thirty percent (30%) down, even the City and County of Honolulu,
everywhere is having this problem.
COUNCIL MEETING 33 AUGUST 3, 2022
Council Chair Kaneshiro: Councilmember Kuali`i.
Councilmember Kuali`i: I, too, want to express my gratitude. Mahalo
nui loa to Troy and everyone at the Roads Division in the Department of Public
Works. I also wanted to thank Managing Director Mike Dahilig and even our Mayor
for telling us about this new and exciting LIMS, even though it is a beta version, I
think the more information we can put out to the public, the better, just making sure
we are accountable to that. Thank you.
Council Chair Kaneshiro: Councilmember Carvalho.
Councilmember Carvalho: I know there is a lot of past history and how
we can move forward, but I think the discussion is all good, and we are moving in the
right direction, especially with the audit. The audit is going to say what happened,
but I also want to bring to the table, like what Councilmember DeCosta said, we
ourselves, this island has gone through so many natural disaster situations where all
the attention when here, we had to ship our resources one way, we had to make sure
we cover this, at this particular timeframe. That is just my own, bringing to the table,
but it is good that we are following through and have a good team in place and look
forward to the results of what we can move forward on, and make the right decisions
moving forward, hopefully everything is in the right direction.
Council Chair Kaneshiro: Council Vice Chair Chock.
Councilmember Chock: I want to echo the mahalo to Spire and our
departments. There is a reason why we have audit gives us insight and gives us the
ability to improve, continuous improvement no matter where we are is really
important. We could be doing really outstanding work and yet, there is always the
next step. I think the audits are as good as how well we are at following through on
them, so Council Chair Kaneshiro and I will not be here, but some of you will be here
to follow-up on this audit, the findings of it, the recommendations, and actions that
are being committed to; that is what I am looking forward to. I appreciate everyone's
hard work on it. Thank you.
Council Chair Kaneshiro: Councilmember Evslin.
Councilmember Evslin: Not to echo too much. Thank you to Spire and
Tyler for being here today. Thank you for the good work on the audit. Just to
reiterate about my questions regarding the performance measurements, and I do
hope going forward into future budget cycles we can have more hard performance
data. I think Councilmember DeCosta is right, in that comparing us to other
municipalities, does not always work, but we should be able to compare us to us in
the past. We need to see how we are progressing. Again, as I have said anecdotally,
we have less complaints than we used to, we can all see the improvement in our roads
year over year, so I think we all know that our road conditions are getting better, but
it would be good to see more hard data on that front, and certainly data on the
efficiency of our efforts on that front. Thank you to Troy, the Roads Division, and
Spire.
COUNCIL MEETING 34 AUGUST 3, 2022
Council Chair Kaneshiro: Is there anyone else? For me, I was on the
Council when we were allocating one million dollars ($1,000,000) to the Roads
Division and we would not spend anything that year, then we would allocate another
million dollars ($1,000,000) the next year, and we would go out to bid with two million
dollars ($2,000,000) of road work, which as you know, does not even scratch the
surface of barely any road, so when the enactment of the G.E. tax brought in a huge
infusion of almost twenty million dollars ($20,000,000), we could actually start to
tackle roads. This audit came about in agreement with the Council and the
Administration. The Administration said, we are getting this huge infusion of money,
we want to do an audit, we want to see if we have the capability and capacity to spend
this money as it comes in, because obviously it is way bigger than what we are getting
in the past. We are all in agreement that it would be a great audit to do, and that is
how it came about back in 2019. As far as the G.E. tax money being spent well, I
think you see it, look at Koloa Road, Maluhia Road, those are over twenty million
dollar ($20,000,000) projects that we would have never been able to have done with
two million dollars ($2,000,000), we would have to wait ten (10) years to even be able
to try and do something like that, but with this G.E. tax money coming in, we were
able to tackle those huge roads. In the future, you are going to see more of the roads
getting tackled. Troy said Olohena Road is on the list, and that is a big one that we
have always heard. Olohena Road has always been on the list, it was always Koloa
Road, Maluhia Road, and Olohena Road that were are the main roads that needed to
be fixed, so as far as keeping track of them and how it is done, we have not heard any
backlash coming back off of Koloa or Maluhia Road, which we received Federal money
on those projects, so I think we are doing a great job. I have to apologize to Keith
Perry, because at one time, he showed me the County website, and it had all the
potholes they were fixing, and how many loads of rock they were putting in, and I
asked him, "Why do we need to know how many rocks loads they are putting in? All
people want to know is which potholes have been fixed." Then, hearing from the
auditor, we should be keeping track of what it cost to fill the holes, so I am sorry
Keith. As far as the public perception of what is going on with roads, I think Keith
and the Administration worked really hard on this GIS system, I know they have
past lists on the website now of roads that were completed and roads to be completed,
and with time, they are going to modernize this and it will be at everyone's fingertips
on when is my road going to get fixed, what is the condition of my road, what are they
doing, and that adds to the transparency. We have a quick view of what the GIS
mapping looks like, so I am happy with the way things are going with roads. I think
the audit is a good thing, it gave things for the Department of Public Works to work
on, and improve upon, and that is what the audit is there for, so it did its purpose. It
came to commingling funds from prior to 2012 audit, that happened a long time ago,
where I believe it was happening with our auto shop being covered by the highway
and fuel tax, and the auto shop was working on a Department of Parks & Recreation's
vehicle or machinery, and technically, that is why now in the budget, we split it out;
we have to split out the Department of Parks & Recreation and Highway Fund types
of work. At that time, it was flagged, and we fixed that, so I am not concerned about
our commingling. As you see in the budget, you see it separated out all the time, I
know that is what was happening in the past. You can see the Auto Maintenance
Shop, you think anything going in there should be highway funded, but it is not. They
fix police cars, they fix the Department of Parks & Recreation vehicles, and all types
of other things, and we have been able to split it out. Councilmember DeCosta.
COUNCIL MEETING 35 AUGUST 3, 2022
Councilmember DeCosta: You just jogged something in my memory
there, Council Chair. I want to say thank you to the Roads Division who patched and
fixed the road outside of the Sheraton with the natural disaster rainstorm we had
with the waves busting on the road. It was amazing, you folks were out there the
very next day, and there was a rumor that Mayor Kawakami was out there shoveling
asphalt and working really hard...they said you drank all the Gatorade and water
from the cooler though. Thank you, Mayor Kawakami, for doing that. That builds
comradery when you go out and help the workforce and rub shoulders with the men
who are in the trenches, and I am amazed that we had that fixed right away, so thank
you, Mayor, the Department of Public Works, and all the men and women who have
the hard hat, the vest, and the shovel, and going to work.
Council Chair Kaneshiro: Councilmember Cowden.
Councilmember Cowden: I just want to throw that brief piece in there
too, we had the 2018 flood, and a lot of that was not fixed. By 2019, we had Kahiliholo
Road. We had so many different roads on the island. We had the landslide in
Waimea. We have had one disaster after another, so at some level—forgive me for
nitpicking a little bit, when we are looking at the bookkeeping—when so many critical
things have been there too, so they have done a really good job.
Council Chair Kaneshiro: Councilmember DeCosta.
Councilmember DeCosta: Again, I want to piggyback on my fellow
colleague Councilmember Cowden, you brought up an excellent point with all of our
natural disasters that we face, sometimes one after another, it is good to have a
reserve, it is good to have money that we can draw on, it is good to have a budget that
we have the liberty to move money around to fix things like this, so thank you to the
Administration for having that available, and thank you to the Council for having
those reserves that we have that is important.
Council Chair Kaneshiro: Is there anyone else?
The motion to receive C 2022-173 for the record was then put, and unanimously
carried.
Council Chair Kaneshiro: The motion is carried. Next item.
COMMUNICATIONS:
C 2022-166 Communication (07/11/2022) from the Acting County Engineer,
transmitting for Council consideration, a Resolution Establishing A Crosswalk And
Bicycle Lanes On Po`ipu Road, Establishing Parking Restrictions And A Crosswalk
And Modifying A School Zone On Pa`anau Road, And Repealing Resolution No. 50-95
And Resolution No. 2013-53 In Their Entirety, And Amending Item 3, Section XV Of
Resolution No. 54-91, Koloa District, County Of Kauai.
Councilmember Kuali`i moved to receive C 2022-166 for the record, seconded by
Councilmember DeCosta.
COUNCIL MEETING 36 AUGUST 3, 2022
Council Chair Kaneshiro: This will be coming up in our agenda later as
Resolution No. 2022-27. We received no written testimony on this item. Is there
anyone in the audience wishing to testify on this? Is there anyone on Zoom? If not,
are there any final questions from the Members? Is there any final discussion?
There being no one present to provide testimony, the meeting proceeded as
follows:
The motion to receive C 2022-166 for the record was then put, and unanimously
carried.
Council Chair Kaneshiro: The motion is carried. Next item.
C 2022-167 Communication (07/11/2022) from Ka`aina S. Hull, Clerk of the
Planning Commission, transmitting the Planning Commission's recommendation to
amend Chapter 8, Kaua`i County Code 1987, as amended, relating to Additional Rental
Units.
Councilmember Kuali`i moved to receive C 2022-167 for the record, seconded by
Councilmember Cowden.
Council Chair Kaneshiro: We received no written testimony on this
item. Again, this item will be up later in our agenda as Proposed Draft
Bill (No. 2878). Is there anyone in the audience or on Zoom wishing to testify? Alice,
do you want to testify on the communication? We will add your testimony to the
actual Bill. This is regarding additional rental units.
There being no objections, the rules were suspended.
Ms. Parker: Alice Parker. I am a deaf person, are you
referring to Resolution No. 2022-22, the housing one?
Council Chair Kaneshiro: No.
Ms. Parker: Okay, I am off. Thank you.
Council Chair Kaneshiro: Is there anyone else? Is there anyone on
Zoom? If not, are there any questions or discussions from the Members?
There being no further testimony, the meeting was called back to order, and
proceeded as follows:
The motion to receive C 2022-167 for the record was then put, and unanimously
carried.
Council Chair Kaneshiro: The motion is carried. Next item.
COUNCIL MEETING 37 AUGUST 3, 2022
C 2022-168 Communication (07/12/2022) from Ka`aina S. Hull, Clerk of the
Planning Commission, transmitting the Planning Commission's recommendation to
amend Chapter 8, Kaua`i County Code 1987, as amended, relating to the Constraint
Districts.
Councilmember Kuali`i moved to receive C 2022-168 for the record, seconded by
Councilmember Carvalho.
Council Chair Kaneshiro: We received no written testimony on this
item. It will be coming up later in our agenda. Are there any questions from the
Members? Is there anyone in the audience or on Zoom wishing to testify? If not, is
there any final discussion from the Members?
There being no one present to provide testimony, the meeting proceeded as
follows:
The motion to receive C 2022-168 for the record was then put, and unanimously
carried.
Council Chair Kaneshiro: The motion is carried. Next item.
C 2022-169 Communication (07/12/2022) from the Executive on
Transportation, requesting Council approval to dispose of the following government
records, which have been kept for over seven (7) years and are no longer of use or
value, pursuant to Hawaii Revised Statutes (HRS) Section 46-43 and Resolution
No. 2008-39 (2008) as amended:
Fuel Documents (Fuel Receipts from July 1, 2013 through
December 31, 2014, and July 1, 2014 through December 31, 2014)
AP Documents (Shop AP Documents and Reports, Fiscal Year Small
Equipment Disposed Busses, and Vehicle Maintenance Logs from
July 1, 2012 through June 30, 2015)
Payroll Documents (Timesheets, half sheets, Weekly Schedule
Leave of Absence and Overtime Selections, Daily Change Forms)
Leave Requests, Time Sheets Distribution List from July 1, 2013
through June 30, 2015)
Audit Documents (AP, Travel, AEA Quarter/Annual Reports, P-Card
Transactions, Adjusted Journal Entries from July 1, 2012 through
June 30, 2015)
Councilmember Kuah'i moved to approve C 2022-169, seconded by
Councilmember Carvalho.
Councilmember Evshn was noted as not present.)
Council Chair Kaneshiro: We received no written testimony on this
item. I will suspend the rules. Councilmember Cowden.
COUNCIL MEETING 38 AUGUST 3, 2022
Councilmember Cowden: I have a quick question for Celia or Leonard.
I do not have any objection to disposing of these, but do any of these records get
scanned, or are they just the paper records that are sitting in the boxes?
There being no objections, the rules were suspended.
CELIA M. MAHIKOA, Executive on Transportation (via remote technology):
The bulk of them would have...I guess depending on which ones we are talking
about, there would be additional records or copies available of it for fuel documents
for the actual invoices that we received—those are processed through the Department
of Finance, so we are just requesting the ability to dispose of the items that we have
here at our agency, which, again, depending on the document, some would be also
centrally housed with the Department of Finance, and others would just be internal.
Councilmember Cowden: Okay, thank you. It is audit documents and
things like that. I know for years when I was on the other side of this banister, I had
no idea that these are boxes of papers sitting in what I consider "the old Gems store,"
and at some point, you can only sit on so much of boxes of paper, so the critical things
have been scanned if there is ever some sort of backward look. Thank you.
Ms. Mahikoa: Thank you.
Council Chair Kaneshiro: Are there any other questions from the
Members? Is there anyone in the audience wishing to testify on this item? Is there
anyone on Zoom? Is there any discussion from the Members?
There being no objections, the meeting was called back to order, and proceeded
as follows:
Councilmember Evslin was noted as present.)
The motion to approve C 2022-169 was then put, and unanimously carried.
Council Chair Kaneshiro: The motion is carried. Next item.
C 2022-170 Communication (07/13/2022) from Michael Gibson, Fire Chief,
requesting Council approval to accept a donation from the Kauai Lifeguard Association,
a non-profit organization, of one (1) 2023 Kawasaki Mule 4010, 4x4 Utility Terrain
Vehicle, valued at $13,455.49, to be used by local lifeguards to serve the community.
Councilmember Kuali`i moved to approve C 2022-170 with a thank you letter to
follow, seconded by Councilmember Chock.
Council Chair Kaneshiro: We received no written testimony on this
item. Is there anyone else in the audience or on Zoom wishing to testify? I will call
the meeting back to order. Are there any final questions from the Members?
Councilmember Cowden.
COUNCIL MEETING 39 AUGUST 3, 2022
Councilmember Cowden: Chief Gibson, I am glad that we have this,
which lifeguard stand is this Utility Terrain Vehicle (UTV) going to?
There being no objections, the rules were suspended.
MICHAEL GIBSON, Fire Chief(via remote technology): Good morning,
Chair and Council. This one will just be to supply our existing. We have about
nine (9) of them that are currently in the fleet; three (3) in the north, three (3) in the
east, and one (1) in the south. Typically, the UTVs on the east and the north only
last one (1) to two (2) years due to the extensive corrosion, the rest will last two (2) to
three (3) years, so we will most likely put this in the south where it can last the
longest, and we will move the older ones to the east and the north where they
deteriorate quicker.
Councilmember Cowden: Okay, thank you. Just honoring the Kauai
Lifeguard Association—they really do amazing things for us, and the hotels who
basically fund the Kauai Lifeguard Association, right? Citizens do too, but I just
wanted to acknowledge that pathway.
Council Chair Kaneshiro: Are there any further questions from the
Members?
There being no objections, the meeting was called back to order, and proceeded
as follows:
Council Chair Kaneshiro: Is there any final discussion from the
Members? Councilmember DeCosta.
Councilmember DeCosta: I want to personally thank our new Fire Chief
for doing such an excellent job, "boots on the ground" taking control of a situation you
are put into. At the same time, I would like to thank our lifeguards, they are
under-gratified, under-paid, our lifeguards do such a great job, they risk their life.
Chief, you and I had this conversation, they almost work as hard, I do not want to
say harder, but as hard as our firemen; yes, they have a tough job, so I just wanted
to recognize the lifeguards like Kalani Vierra doing such a great job that the men and
women in our red and yellow outfits are doing out there. Thank you.
Council Chair Kaneshiro: Is there any other discussion from the
Members?
The motion to approve C 2022-170 with a thank you letter to follow was then
put, and unanimously carried.
Council Chair Kaneshiro: The motion is carried. Next item.
C 2022-171 Communication (07/15/2022) from Councilmember Evshn,
transmitting for Council consideration and confirmation, the reappointment of
Jonathan Thomas Lucas to the Public Access, Open Space, Natural Resources
COUNCIL MEETING 40 AUGUST 3, 2022
Preservation Fund Commission (K51oa1P6ipu/Ka1aheo) — Term ending
December 31, 2025.
Councilmember Kuali`i moved to receive C 2022-171 for the record, seconded by
Councilmember Cowden.
Council Chair Kaneshiro: We received no written testimony on this
item. Is there anyone in the audience or on Zoom wishing to testify? Are there any
questions from the Members? Is there any discussion?
There being no one present to provide testimony, the meeting proceeded as
follows:
The motion to receive C 2022-171 for the record was then put, and unanimously
carried.
Council Chair Kaneshiro: The motion is carried. Next item.
C 2022-172 Communication (07/21/2022) from the Fire Chief, requesting
Council approval to accept a donation from the Friends of Kauai Fire Service, a
non-profit organization, of an air conditioning unit, inclusive of installation, parts, and
the cost of any necessary permits valued at $10,000.00, for the Hanalei Fire Station.
Councilmember Kuali`i moved to approve C 2022-172 with a thank you letter to
follow, seconded by Councilmember Chock.
Council Chair Kaneshiro: We received no written testimony on this
item. Is there anyone in the audience or on Zoom wishing to testify? Are there any
questions from the Members? Is there any discussion?
There being no one present to provide testimony, the meeting proceeded as
follows:
The motion to approve C 2022-172 with a thank you letter to follow was then
put, and unanimously carried.
Council Chair Kaneshiro: The motion is carried. Next item.
CLAIMS:
C 2022-174 Communication (07/14/2022) from the County Clerk,
transmitting a claim filed against the County of Kauai by Waimea Huakai Partners,
LP, for property damage, pursuant to Section 23.06, Charter of the County of Kauai.
C 2022-175 Communication (07/18/2022) from the County Clerk,
transmitting a claim filed against the County of Kauai by, American Family
Insurance, as subrogee of Monte Huff, for vehicle damage, pursuant to Section 23.06,
Charter of the County of Kauai.
COUNCIL MEETING 41 AUGUST 3, 2022
C 2022-176 Communication (07/21/2022) from the County Clerk,
transmitting a claim filed against the County of Kauai by Heather Barth, for vehicle
damage, pursuant to Section 23.06, Charter of the County of Kauai.
Councilmember Kuali`i moved to refer C 2022-174, C 2022-175, and
C 2022-176 to the Office of the County Attorney for disposition and/or report
back to the Council, seconded by Councilmember Carvalho.
Council Chair Kaneshiro: We received no written testimony. Is there
anyone in the audience wishing to testify? I will suspend the rules.
There being no objections, the rules were suspended to take public testimony.
Mr. Sykos: Claims against the County is an area in which
the County can most proactively act, and in claims. In these particular claims for
vehicles, the public would like to know whether or not the claims are the result of the
pavement, potholes, damage to the vehicle driving down the road, or if the vehicles
were damaged by falling objects by County heavy equipment, or some other type of
activity. We simply would like to know why, and how these vehicles got damaged.
Thank you.
Council Chair Kaneshiro: Thank you. Is there anyone else? Is there
anyone on Zoom wishing to testify? Are there any questions or is there any final
discussion from the Members?
There being no further testimony, the meeting was called back to order, and
proceeded as follows:
Council Chair Kaneshiro: For my discussion, I will say, these are claims
that are going to the Office of the County Attorney, once they get settled you will see
them. In this actual agenda, item C 2022-164 shows a bunch of the claims against
the County, the settlement amounts, and the descriptions of what it was.
The motion to refer C 2022-174, C 2022-175, and C 2022-176 to the Office of
the County Attorney for disposition and/or report back to the Council was then
put, and unanimously carried.
Council Chair Kaneshiro: The motion is carried. Next item.
COMMITTEE REPORTS:
PARKS & RECREATION/ TRANSPORTATION COMMITTEE:
A report (No. CR-PRT 2022-04) submitted by the Parks & Recreation /
Transportation Committee, recommending that the following be Approved on second
and final reading:
Bill No. 2869 — A BILL FOR AN ORDINANCE AMENDING
CHAPTER 23, SECTION 23-3.7, KAUXI COUNTY CODE 1987, AS
COUNCIL MEETING 42 AUGUST 3, 2022
AMENDED, RELATING TO CONCESSIONAIRES AT THE SPOUTING
HORN,"
A report (No. CR-PRT 2022-05) submitted by the Parks & Recreation /
Transportation Committee, recommending that the following be Approved on second
and final reading:
Bill No. 2870 — A BILL FOR AN ORDINANCE AMENDING
CHAPTER 23, ARTICLE 3, KAUXI COUNTY CODE 1987, AS AMENDED,
RELATING TO PEDDLERS AND CONCESSIONAIRES,"
Councilmember Kuali`i moved for approval of the reports, seconded by
Councilmember Carvalho.
Council Chair Kaneshiro: We received no written testimony on these
items. Is there anyone in the audience or on Zoom wishing to testify?
There being no one present to provide testimony, the meeting proceeded as
follows:
Council Chair Kaneshiro: Are there any questions or discussion from
the Members?
The motion for approval of the reports was then put, and unanimously carried.
FINANCE & ECONOMIC DEVELOPMENT COMMITTEE:
A report (No. CR-FED 2022-05) submitted by the Finance & Economic
Development Committee, recommending that the following be Received for the Record
on second and final reading:
Bill No. 2828 — A BILL FOR AN ORDINANCE AMENDING
CHAPTER 5A, KAUXI COUNTY CODE 1987, AS AMENDED,
ESTABLISHING A COMMERCIAL VEHICULAR RENTAL REAL PROPERTY
TAX CLASS,"
Councilmember Kuali`i moved for approval of the report, seconded by
Councilmember DeCosta.
Council Chair Kaneshiro: We received no written testimony on these
items. Is there anyone in the audience or on Zoom wishing to testify?
There being no one present to provide testimony, the meeting proceeded as
follows:
Council Chair Kaneshiro: Are there any questions or discussion from
the Members?
The motion for approval of the report was then put, and unanimously carried.
COUNCIL MEETING 43 AUGUST 3, 2022
Council Chair Kaneshiro: The motion is carried. Next item.
RESOLUTIONS:
Resolution No. 2022-22 — RESOLUTION PROPOSING A CHARTER
AMENDMENT RELATING TO A HOUSING DEVELOPMENT FUND
Councilmember Kuali`i moved for adoption of Resolution No. 2022-22,
seconded by Councilmember Chock.
Council Chair Kaneshiro: I will suspend the rules. Councilmember
Evslin, did you want to say anything?
Councilmember Evslin: No, I have an amendment though.
Council Chair Kaneshiro: Okay.
Councilmember Evslin moved to amend Resolution No. 2022-22 as circulated,
and as shown in the Floor Amendment, which is attached hereto as
Attachment 1, seconded by Councilmember Chock.
Councilmember Evslin: The amendment is a housekeeping
amendment. Section 19.08A of the Charter, states that all funds lapse except for
paragraph "C" of the Charter shall not lapse. All this does is add paragraph "D" as
another fund that does not lapse. If the Resolution amending the Charter were to
pass without this amendment, it would set up conflicting parts of the Charter where
it says that all funds shall lapse, but here is this non-lapsing Housing Development
Fund. All this simply does is adds to the Housing Development Fund to a non-lapsing
fund. As we know, the Housing Development Fund already currently does not lapse.
Council Chair Kaneshiro: This is housekeeping.
Councilmember Evslin: Yes.
Council Chair Kaneshiro: Are there any questions from the Members?
Is there anyone in the audience wishing to testify on the amendment?
There being no objections, the rules were suspended to take public testimony.
Mr. Sykos: I perhaps understand what I was told about
the amendment; however, I wonder why it is not in large characters up there, so that
we in the public can read it, or why we were not given a copy of this to read, which I
am not asking for. Thank you. As a general housekeeping thing, when these types
of things come up, we do not have access to it, and it is also quite difficult reading the
screen. I do not know if you can do anything about it, but I have 20/20 vision and it
is very difficult for me to read the smaller text up there. Thank you very much.
COUNCIL MEETING 44 AUGUST 3, 2022
Council Chair Kaneshiro: Is there anyone else wishing to testify on the
amendment? Is there anyone on Zoom? Any further questions from the Members?
Is there any final discussion on the amendment?
There being no further testimony, the meeting was called back to order, and
proceeded as follows:
Council Chair Kaneshiro: For me, I will be voting on the amendment. I
think it is necessary, and it is a housekeeping item, so I will be voting in favor of the
amendment. Is there anyone else? Councilmember Chock.
Councilmember Chock: I will just mention, none of us see the
amendments until they are introduced, as well, so we are in the same boat as you,
Lonnie.
Council Chair Kaneshiro: Is there anyone else?
The motion to amend Resolution No. 2022-22 as circulated, and as shown in
the Floor Amendment, which is attached hereto as Attachment 1 was then put,
and unanimously carried.
Council Chair Kaneshiro: Back to the main motion as amended. Are
there any questions on the Resolution from the Members? Councilmember Cowden.
Councilmember Cowden: I do. This question is for Reiko, Director of
Finance. Reiko, I really appreciate your follow-up E-mail asking about our bond
rating, because that is something that I have quite a bit of concern about. Without
saying what my concern is, my question is succinct—in here, you are saying we have
a Triple-A (AAA) rating, which is the highest, it is great rating that we are at, right
now?
There being on objections, the rules were suspended.
Ms. Matsuyama: Yes, we do have a good rating.
Councilmember Cowden: It seems to me, about three and a half (31/2)
years ago when I was first elected, we did not have a great rating, we had been a little
soft, am I remembering correctly? And we got money in from the Coronavirus Aid,
Relief, and Economic Security (CARES) Act that helped us reestablish our strength,
or am I remembering wrong?
Ms. Matsuyama: I do not think that is correct. We usually only
get rated when we go out for obligation bonds, or refinance, which we did in 2021, so
in 2021, they actually reaffirmed our same rating that we got in 2017, so it remained
at Triple-A stable outlook.
Councilmember Cowden: Triple-A. Okay, because one of the things
that I worry about is, when we do things like get our one
hundred-million-dollar ($100,000,000) bond to do the Wastewater, for example, with
a Triple-A rating, we would get a low interest rate, and if we had a lower bond rate,
we would have a higher interest rate, is that correct?
COUNCIL MEETING 45 AUGUST 3, 2022
Ms. Matsuyama: Basically, the bonds are marketed in the open
market, so investors are more confident in investing in a higher rate bond, so they
are willing to take more risks, so the interest rates are lower than if we had a lower
bond rating.
Councilmember Cowden: So, when we have special funds, we have the
Open Space Fund, which I am very supportive of, I am basically supportive of this
going into the Housing Revolving Fund, but what I want to know is, will this impact
our bond rating, or could it, if we have several? How does this type of thing impact
our bond rating?
Ms. Matsuyama: This action in and of itself probably would not
impact our bond rating directly, but when I did reach out to our financial advisors,
bond council, underwriters, all of those folks who helped us with the 2021 refinancing,
all of them responded quickly to say, "Well, you folks should not do this." So, it opens
the door in the rating agency's eyes, that if you are willing to do this, you are willing
to do other things as well, so that just limits our capacity to budget and reduces our
flexibility.
Councilmember Cowden: Okay, I will save the rest for discussion.
Council Chair Kaneshiro: Councilmember Evslin.
Councilmember Evshn: You said, if you do this, then you will do
others, so is this a slippery slope concern, or is there a concern isolated to this action?
Ms. Matsuyama: I think there is always a concern that the
legislative body would be willing to do this, but I would say that they were more
concerned with the slippery slope.
Council Chair Kaneshiro: Councilmember Cowden.
Councilmember Cowden: How does the Department of Finance feel
about this? Are you good with this?
Ms. Matsuyama: Basically, it is the Council's purview, you
folks have this legislative ability to get five (5) votes and put it on the ballot as a
Charter Amendment, we have our own tasks, so we leave it to you folks to deliberate
and make the decision on your own.
Councilmember Cowden: Does Managing Director Mike Dahilig have
concerns, or are you supportive of our choice?
Mr. Dahilig:In terms of the proposal itself,
Councilmember?
Councilmember Cowden: If this were to pass and the voters pass it on
the ballot, and we have this two percent (2%) diversion of real property tax...I will be
COUNCIL MEETING 46 AUGUST 3, 2022
honest, I am good with it, but I want to know how you are, if the Administration feels
solid?
Mr. Dahilig:I will put it this way, Councilmember
Cowden, just in response, as was asked in the previous meeting, the authority that is
being exercised by the Council via this Resolution is an authority for the Council
alone, it is not like a Bill that would need the Mayor's signature to end up having that
become law. In terms of holding the public, if this is how they want the general
revenues of the County to be expended, essentially, what it is, it is the Council giving
up a portion of its overall appropriation authority to have it fixed in the record as to
what portion needs to be spent on a specific program, it is not unprecedented, but it
is unusual in the sense that you do not see other programs, per se, having this type
of Charter-style allocation going into the budgeting process. Also, in a previous
meeting, I did point out that, we need to be cognizant of the issue relating to the past
case of Nakazawa vs. Baptiste in that this does not necessarily presuppose it to be an
appropriated amount, that the money still needs to go through the general
appropriation process of the County, should it be consented to by the voters of the
County, but at the end of the day, this is a mechanism solely within the province of
the Council, and respect that the Council's desire to want to seek public electorate
position or consent on something where it is ceding its authority to have it be fixed in
without general appropriations.
Councilmember Cowden: Thank you.
Council Chair Kaneshiro: I have a question for the introducers. What is
wrong with our current budget process?
Councilmember Evslin: I can answer. One, personally, I think we are
underfunding our Housing Agency. As our Housing Director has said many times on
the floor, they could do a lot more with more money, and the timeframe for Lima Ola
is spread out over decades based on funding. I believe the Administration, to their
credit, generally asks every department head to keep their budgets flat in their
budget requests, so I think it comes back to Council, if we want to try and increase a
budget or not, I have personally tried to increase the Housing Development Fund
twice, and failed, so I think more money should be going into the Housing
Development Fund, I also think, as we have stated before, they need long-term
certainty to be able to adequately plan. We just saw it with the audit for our Roads
Division, that uncertainty over GET makes it hard for them to plan future road
construction; we have the same exact thing to a way greater extent with housing. At
least with GET, they can have a close estimation of what they are going to get,
whereas the Housing Development Fund could go to zero ($0), it could go higher, they
really do not know, so I think we need the long-term certainty for long-term planning.
Lastly, as has been stated over and over, having and ensuring the Housing Agency
has the flexibility to go out for revenue bond is important. We just received testimony
from the Budget and Policy Center strongly advocating on behalf of this and showing
a number of other municipalities that have dedicated funding—Portland, Los
Angeles, Maui, Honolulu—that allows these folks to go after revenue bonds from a
dedicated funding source that requires access in a similar fashion. For me, that is
my rationale.
COUNCIL MEETING 47 AUGUST 3, 2022
Council Chair Kaneshiro: You said you felt that the Housing Agency
needs more money. Did you ever hear the Housing Agency tell us they needed more
money during our budget process?
Councilmember Evslin: Yes, during decision-making there are a lot of
quotes from Adam saying...
Council Chair Kaneshiro: But not prior to decision-making. Prior to
decision-making is when they should be telling us they need more money, so that
when we get to decision-making it is justified, right?
Councilmember Evslin: I think, as we have heard from the
Administration, their request to the department heads is to keep their budgets flat
year in, year out, so I think in this last year, from my understanding, that is what
the department heads heard, they come in with their budget requests, it is still going
to be on us to try and increase that or not, but from quotes from the Housing Director
during the budget process, before decision-making, he said, "With more money, we
can do more, more quickly. Our development model is changing, and we will need to
have additional funds over the long term to be able to make that development model
successful.Infrastructure work in Lima Ola is a
thirteen-million-dollar 13,000,000)"...paraphrase, we have a
thirteen-million-dollar ($13,000,000) loan with ten million dollars ($10,000,000) in
interest over twenty (20) years for Lima Ola," as Adam said, if we had the funds for
those projects to fund those projects ourselves, we would be saving ten million
dollars ($10,000,000) over the lifespan of the loan. You said, at budget, we have
twelve (12) fifteen-million-dollar ($15,000,000) projects coming up with no identified
funding source. So, I think he has repeatedly said that they can do more with more
funding. Again, it comes back to trying to figure out how we get them that money.
Council Chair Kaneshiro: I think every single department, if you ask
them, they will say they could do more with more funding. I can quote Adam also, he
has admitted, at two (2) hours and eighteen (18) minutes, he admitted they "are not
prepared to immediately begin spending millions of extra dollars within the next
fiscal year." Part of the budget process is, if they need more money, they should ask
for it. If he has a project that he needs money for, he should say, "I have a project, I
want to ask for bond funding, I need twenty million dollars ($20,000,000) for this
project, it is going to cost us `x' number in so many years." He should ask for it in the
budget process, then it is up to us or the Mayor to try and fund it, whether we cut
money or the Mayor says, "Yes, he needs that money now, let us do it," but I think
every single department needs to justify why they need money versus us just giving
them money.
Councilmember Evslin: Can I respond? One, I think, again, the
structure of the budget is set up so the department heads are supposed to keep their
things revenue-neutral. I do not know what background conversations happen
outside of what we saw, but in some sense, we treat the Housing Development Fund
as a CIP fund—when times are good, we are putting money into it, when times are
not good, we are not putting money into it. For so many other departments, we are
locked into funding salaries. They can ensure that we can fund salaries and
COUNCIL MEETING 48 AUGUST 3, 2022
retirement, and we are legally bound to do so, so they can do long-term planning
based on that, and I think housing and housing infrastructure is essentially just as
important as ensuring that we are funding salaries through other departments.
Other examples, we spent three (3) hours talking about sewer rates a month ago, and
our sewer rates that we set at Council will be based on some long-term commitment
to fund one million five hundred thousand dollars ($1,500,000) annually out of the
General Fund. So, we are setting the rates, then depending on what those rates are,
that locks in a certain amount of general funding, perpetually. We just do not end up
doing the same for housing, so as sewer can do the long-term planning, because they
know the funding is coming, our Housing Agency cannot do it, and if there is a
mechanism outside of the Charter where we can ensure this level of commitment to
long-term funding, then I am all ears, but as far as I know, this is the only mechanism
we have.
Council Chair Kaneshiro: I have a few more questions, but
Councilmember DeCosta.
Councilmember DeCosta: I wanted to ask a follow-up with what he said.
I will disagree with you on pensions and salaries are as important as housing. The
housing is not a Charter Amendment it is actually the Housing Agency. Those people,
public safety is at the forefront. Those salaries are at the forefront. Those salaries
need to be paid. I am going to ask the former Mayor here, were there times in your
reign over ten (10) years, did you budget down to the last dollar because you had no
extra revenue?
Councilmember Carvalho: It was crazy.
Councilmember DeCosta: It was, right? I did research.
Councilmember Carvalho: Overall.
Councilmember DeCosta: Overall, he had no extra money to do anything
with. I heard the Managing Director tell us today, that rockfall in Waimea costs so
much money at the snap of a finger to replace, and they needed revenue to do that,
we have so many pressing natural disasters that can happen at any time, and it states
that they need that access to revenue, because things change. I want to ask you and
Councilmember Chock a question. We gave three million dollars ($3,000,000) during
this budget. Your two percent (2%) would have given three million seven hundred
thousand dollars ($3,700,000). Why did you and Councilmember Chock not cut seven
hundred thousand dollars ($700,000) from this budget to make sure Housing had
three million seven hundred thousand dollars ($3,700,000), which is what you want
for next year, if we vote to have this on the Charter? The question is, why did you
and Councilmember Chock not cut seven hundred thousand dollars ($700,000) to
ensure that Housing Director Roversi had three million seven hundred thousand
dollars ($3,700,000) to work with?
Councilmember Evslin: I had a budget decision-making proposal
which would have allocated four and a half million ($4,500,000) additional funds to
housing, which is about seven and a half million dollars ($7,500,000), through a
one-dollar ($1) tax rate increase for TVRs; that was my proposed mechanism to try
and get the Housing Agency funding up, but the two percent (2%)...the additional
seven hundred thousand dollars ($700,000) is not necessarily the most important
COUNCIL MEETING 49 AUGUST 3, 2022
rationale for this, it is the long-term funding, and the ability to go out for revenue
bonds, so that is what is important.
Councilmember DeCosta: Hang on, we have the ability to cut the
budget. I know we spent thirty (30) days, line-by-line, we went through the budget;
do we know how to cut the budget, or do we just look at the budget and agree? That
is our job, that is the power we have as a Council, we cut the budget, we add, or we
subtract. I am asking you and Councilmember Chock, why did you not cut...do not
tell me about raising TVR taxes, I am asking about cutting the budget, meeting
within our means, and putting an extra seven hundred thousand dollars ($700,000)
to make sure Housing Director Roversi had three million seven hundred thousand
dollars ($3,700,000), which is what you are asking per year, but we can do that every
year, we have the power. I look at Mayor Kawakami Administration appropriations,
he put two million six hundred thousand dollars ($2,600,000) to two million seven
hundred thousand dollars ($2,700,000) every year since he has been Mayor. Former
Mayor Carvalho had four hundred thirty-three (433) units built in his ten (10) years
with zero (0) money, because we lobbied the State and Federal people for funding.
Councilmember Evslin: That is not why.
Councilmember DeCosta: That is not why?
Councilmember Evslin: We had forty-two million
dollars ($42,000,000) from `Iniki funding that was rolled over in the Housing
Development Fund under Carvalho's Administration, Yukimura's Administration,
and the Baptiste Administration. They were leveraging that money repeatedly to
build large amounts of affordable housing; those funds, as I understand, ran out
somewhere at the tail end of the Carvalho Administration, which is when the Council
ended up starting to allocate funding to the Housing Development Fund to ensure
the funds were there, it was not purely...again, just to go back to it, the point is not
necessarily that extra seven hundred thousand dollars ($700,000), I still think, even
if we do this, we should still...
Councilmember DeCosta: Can you answer the question, why did you
and Councilmember Chock not cut the seven hundred thousand dollars ($700,000)?
Councilmember Evslin: Because I thought the money should have
come from a TVR tax increase, which is what I said, but again, it is the long-term
funding that is the important part here, not necessarily the extra seven hundred
thousand dollars ($700,000).
Councilmember DeCosta: You still did not answer my question.
Councilmember Chock, do you want to take a jab at it?
Councilmember Chock: No, because the budget process offers
mechanisms for us to deliberate on it. The decision here and in the proposal was not
to cut, it was to increase. So, you are asking for us to answer a question which was
not the strategy to the solution that we are seeking.
COUNCIL MEETING 50 AUGUST 3, 2022
Councilmember DeCosta: I have a strategy.
Councilmember Chock: Let me tell you something about that, because
we all have the right to cut the budget, and if you look at the history of our budget
deliberations, you will find that nowhere in time, at least as far as I have been here,
have we cut more than two hundred thousand dollars ($200,000) from the budget, so
we know that it is difficult to find the money, that is why it has never been done.
That is why the strategy was such to look for the funding elsewhere, rather than cut
the really important funding mechanisms that were already in place that were being
proposed in the budget.
Councilmember DeCosta: It is hard to cut something that is
streamlined. They did a really good job on the budget, that is why we had a hard
time cutting the budget.
Councilmember Chock: That is why we sought funding in a different
direction.
Council Chair Kaneshiro: Let me bring it back, so that we do not get too
testy with each other. Again, going back to my main question on the budget and the
budget process. This year we saw a huge...we never had an influx of revenue like
this in any other years, which is why we had a hard time cutting money. This year
we had forty nine million dollars ($49,000,000) more in revenue, we have twenty-two
million dollars ($22,000,000) more in new General Fund CIP projects, so if there was
a reason to cut, I am sure it could have been cut, but when you add a tax and a cut,
then it makes it more difficult, but if you just wanted to cut money and put it into
Housing, I think it would have been easier if you took a project on the General Fund
CIP list and cut it and put it into Housing—that would have been much easier to
swallow to put into Housing than a tax increase and a cut. The budget process is
there. How is that budget process faulty and us needing this Charter Amendment?
Councilmember Chock: I do not think it is faulty. I think we have
several options as a Council to move on initiatives that we see as important, and we
use those; this is another tool to do so, so I am not faulting the budget process, but I
can tell you what it does do, when we put an initiative like this forward, it
depoliticizes the exact conversation that we are having at the table right now. It is
an option. If the option is so bad, then maybe that is the question that we should be
asking. I am not criticizing our budget process. I am saying, we went through the
process, this is where we were, and we have another option in front of us, so we are
entertaining it, that is our job.
Council Chair Kaneshiro: Councilmember Carvalho. We are still on
questions and answers.
Councilmember Carvalho: Just for the record. Knowing all the roles of
being former Mayor and understanding the process there, and sitting here as a
Councilmember, and knowing the options we have on the table, I feel like going this
Charter route is not the route to go. We have options that we can work towards. I
have examples on how we secured funding for housing. We can work on different
COUNCIL MEETING 51 AUGUST 3, 2022
options that are on the table right now, as we speak, I know that. From the
Administrative side, securing the funding, on the Council side, we put it into the
budgetary process, we can allocate the funds accordingly. What if something like a
natural disaster happens again, and the funding is not available, here on the table,
we can actually have it in our discussion.
Council Chair Kaneshiro: Do you have a question with that?
Councilmember Carvalho: I just wanted to ask the question again,
Councilmember Evslin, as far as going the Charter route, there are other ways we
can do it, did you seek other options that can happen to keep it here?
Councilmember Evslin: Yes, I think we had this discussion in depth
during decision-making. Around my understanding with a lot of the resistance
around the increase of the TVR tax and the allocation was that is was a one-time
allocation, so as we discussed it, this is a way in some sense to ensure there is a
permanent allocation, the only way that I know of is via the Charter. If I can just
add a little bit, to respond to what Councilmember DeCosta was saying, times have
changed a lot over the last four (4) years, in that the vacation rental tax rate has
increased over that time. The vacation rental tax rate was increased in the 2018
budget, right before we got on, the residential investor threshold has gone down to
one million three hundred thousand dollars ($1,300,000), and we are now getting
more revenue out of the Transient Accommodation Tax (TAT) for that allocation, so
we have, I do not know how much of that funding that equals up to...twenty million
dollars plus ($20,000,000+) in additional funding that we did not have before, and we
have the mechanism through increasing TVR taxes to be equal to resort, which every
other county does to raise an additional four and a half million dollars ($4,500,000)
that easily funds this two percent (2%) allocation. Then, we have a tiered bill, which
we will talk about in the Committee Meeting, which will give us the capacity to
exclusive the tax high value vacant homes and vacation rentals at higher rates also.
So, we have all these funding mechanisms available, we have a whole lot more
funding coming in than we had five (5)years ago, and based on all of that, I personally
think it is important via the Charter to say that building housing is of utmost
importance, so important that we are going to put it in the Charter and we are going
to give the Housing Agency the tools that they need to do this year in and year out.
Council Chair Kaneshiro: Councilmember DeCosta, then
Councilmember Cowden.
Councilmember DeCosta: You missed one step; that extra revenue we
have coming in. The next Council can appropriate that revenue towards housing, the
same power we have this year to do it; why do we have to go to the Charter for two
percent (2%)? If we have twenty-two million dollars ($22,000,000) coming in from all
the increases from the vacation rental investor or the TVRs, then maybe my question
is for Mike. Mike, are you on? Mike, I want a simple answer, I do not want a lawyer
answer, I just want a simple answer. Mike, we all agree that housing is at the
forefront, we have landfill that has been three (3) years also, but housing is at the
forefront. If Adam says, next year, "We have a shovel-ready project, I need twelve
million dollars ($12,000,000)," we have twenty-two million dollars ($22,000,000)
COUNCIL MEETING 52 AUGUST 3, 2022
coming in from the TVRs, would we cut a few CIP projects to give Adam the ten
million dollars ($10,000,000) to make that shovel-ready project go? Are you
committed to that?
Mr. Dahilig:From a process that we can commit to is that,
as you have described, there is a shovel-ready project that needed funding, would
definitely rise to the top of the priority list, but it always depends on what revenue is
available, and how the collective bargaining increases impact availability of extra
funds, so there is always more demand than resources, regardless of what we try to
do in government. But something that is shovel-ready, absolutely, would rise to the
priority considerations in our process.
Councilmember DeCosta: So, from what I heard Managing Director
Dahilig say, collective bargaining and retirement has to be paid, that is very crucial.
Duties of that department, Housing Agency, is at the top if there was a shovel-ready
project, we have a mechanism in place that we can put money into, ready to go, so I
do not know how we are trying to fix something that is not broken.
Council Chair Kaneshiro: Councilmember Cowden.
Councilmember Cowden: Well, if he needs to respond to that, or I have
a different question.
Councilmember Evslin: Just a quick response. Last year or the year
before, the Housing Agency went out for a thirteen million dollar ($13,000,000) loan
with ten million dollars ($10,000,000) in interest for Lima Ola infrastructure,
shovel-ready project, went out for a loan at much higher interest rates, and that could
get to a revenue bond to ensure that they have the funding for it, five hundred
thousand dollars ($500,000) a year of taxpayer money in interest alone, if we had a
dedicated annual funding that you can better plan for that, and have better revenue
bonds, et cetera. Again, in my opinion, it comes.down to the annual discretion that
is part of the problem, and that they cannot keep up with long-term planning, but I
recognize that we disagree there.
Council Chair Kaneshiro: I have a follow-up question, and I think this
question goes to Reiko. Reiko, are revenue bonds cheaper than general obligation
bonds?
Ms. Matsuyama: No. Revenue bonds are technically more
expensive. They probably will range from twenty-five (25) to fifty (50) base points
higher as an interest rate perspective, and it also requires more debt coverage, so you
basically cannot borrow as much, but there is little to no risk on the County, because
revenue bonds are not rated...they do not have any ties to the County, it is passed on
to the developer.
Council Chair Kaneshiro: I have a follow-up, it is going to go to Adam.
Adam, are you currently pursuing a revenue bond?
ADAM P. ROVERSI, Director of Housing (via remote technology): Aloha,
Council Chair. Yes, if you recall the Council approved the issuance of revenue bonds,
it is a special category of revenue bonds that...private activity bond issuance, so that
COUNCIL MEETING 53 AUGUST 3, 2022
is a special category of...not technically a revenue bond actually, I do not think.
Private activity bonds are authorized under State law, each County has a statutory
private activity bond cap, so it allows roughly between...so Kaua`i's cap in private
activity bonds is roughly between seven million dollars ($7,000,000) and eight million
dollars ($8,000,000) each year. Historically, at least for about the last
twenty-five (25) years, Kauai County has not used any of its private activity bond
cap that was available. The County and most counties to be honest, have allowed
that private activity bond capacity to flow to the State, so it has fallen on Hawaii
Housing Finance and Development Corporation (HHFDC) to administer each
county's private activity bond cap in the pool of State funding. So, the State has an
allocation of private activity bonds, and every County has an allocation, and
traditionally, most counties have allowed their share to go to the State, which then
administers the funds through HHFDC. The Council authorized us to pursue a pilot
program this year, doing our first issuance of private activity bonds in many decades
to fund the vertical infrastructure of the eighty-five (85) units at Lima Ola. As I
described when I came to the Council to ask permission to do that, the reasoning was,
that if we are dependent on the State to administer the bonds, we have no say as to
what gets funded or what does not, we along with every other project in the State
would have to submit a competitive application to HHFDC and keep our fingers
crossed that we received the bond proceeds to fund the project on Kauai.
Councilmember Chock was noted as not present.)
Mr. Roversi:Some years we get lucky, and Kauai projects
get funded, and some years we do not, and no Kauai projects get funded. Since we
just spent seventeen million dollars ($17,000,000) in total putting in the
infrastructure at Lima Ola, it did not seem like a great idea to let those lots sit empty
and just keep our fingers crossed that we would receive funding from the State, so it
seemed like a perfect match to use our essentially guaranteed private activity bond
capacity to direct the funding to the Lima Ola project that we put so much time and
effort into getting it up and off the ground, so that we could get it done on our
schedule, and in a way that we wanted. Yes, the Council approved this private
activity bond issuance, and we have bond counsel under contract working on the
necessary paperwork to do so, and we will likely be coming to the Council for the
required bond resolution in the next thirty (30) days or so.
Council Chair Kaneshiro: I know the answer to this next question, but I
want you to confirm it; is that bond contingent on a Charter Amendment passing with
two percent (2%) revenue going to the Housing Revolving Fund?
Councilmember Chock was noted as present.)
Mr. Roversi:Because private activity bonds are a creature
of State law, they are irrelevant to the current Charter Amendment, or the County
budgeting process for that matter. However, they are capped every year at that
COUNCIL MEETING 54 AUGUST 3, 2022
statutory state amount, and I think it is worth noting this past year, not because of
what Kauai County did, but because the City and County of Honolulu had indicated
that they may also retain their private activity bond capacity, which would have
taken huge amounts of funds out of the State pool. There were at least three (3)
pieces of proposed legislation at the State level that would have stripped Kauai
County of its private activity bond capacity and given it all to the State. I am thankful
that did not happen, those pieces of legislation did not pass, but they were close and
there was significant State-level movement to try to take away the County's private
activity bond capacity, because they were concerned about the State having their own
bond shortfall. My point being that an ongoing private activity bond capacity is not
guaranteed.
Council Chair Kaneshiro: And it is not contingent upon having this two
percent (2%) Charter Amendment pass, right?
Mr. Roversi:That would be correct, they are two (2)
separate animals and are unrelated.
Council Chair Kaneshiro: Okay. Do you have a follow-up or new
question? Councilmember DeCosta, then Councilmember Cowden.
Councilmember DeCosta: Mine is with Adam, is that okay?
Councilmember Cowden: Is it a follow-up, or is it a fresh question?
Councilmember DeCosta: It is to do with funding from the Federal
government into housing.
Council Chair Kaneshiro: Councilmember DeCosta, then
Councilmember Cowden.
Councilmember DeCosta: Two-part question, Adam. Can you explain
the approximate eight million five hundred thousand dollars ($8,500,000) that came
in from Senator Schatz. Was that a direct influx into the Housing Agency or did that
come from the Administration into the Housing Agency? That is my first part of the
question.
Mr. Roversi:Last Federal fiscal year, the Federal
government reinstituted the process of allowing individual centers and congressmen
to request funding earmarks, which had been banned on the Federal level for several
decades. Last year was the first year that it was permitted, and the way that works
is State and local governments are invited to submit applications to their respective
Senators and Congressmen, therefore all the County departments were invited to put
together applications. The Housing Agency put together two (2), the Department of
Public Works and maybe Office of Economic Development (OED) also submitted
applications, I may be confusing last year and this year. The Housing Agency,
working with the Office of the Mayor, submitted applications to Senator Schatz, as
well as Senator Hirono. Thankfully, one of our applications for vertical construction
of the senior housing project at Lima Ola, and funding for a portion of the community
COUNCIL MEETING 55 AUGUST 3, 2022
center were approved, so that is the eight million five hundred thousand
dollars ($8,500,000) that you are talking about. That was specifically Federally
earmarked that was submitted into the Federal budget by Senator Schatz, but then
it becomes just a creature of the appropriations process. Ultimately, it was approved
by congress, but like I say, it was the first time in decades that the possibility of
getting those funds has even existed.
Councilmember DeCosta: Correct, but that possibility did not
disappear, it still is going to be ongoing, or do we not know that yet?
Mr. Roversi:The Housing Agency, as well as the
Department of Public Works did submit applications for next Federal fiscal year, but
we have no idea whether it will pass, stay in the final budget or not, but we did submit
applications. There are no guarantees, but we did apply.
Councilmember DeCosta: There are no guarantees with the way we run
our budget, with natural disasters and how we appropriate money and where money
needs to go, but the big question on this second part of it is, how is your relationship
with these Federal leaders? Do you have folks in your office? Are you there late
working with them? With Senator Schatz, Senator Kouchi, and all the key players
to make sure that they are bringing money home to Kauai? That is a key component
that needs to exist. Are you doing that? Are you okay with that? Do you need our
help moving that along? Where are you comfortable on answering this?
Mr. Roversi:Mike might be a better person to answer the
political maneuverings that happen with the congressional delegations than myself.
Mr. Dahilig:Councilmember DeCosta, just in response,
what typically happens is that the earmarks are not guaranteed funding. In fact,
they are described as community support types of moneys rather than a full
discretionary earmark, so there are certain categories that the Senators or the
Representatives can ask their constituency, saying, "I may want to put something
into the budget for you, if I can get the rest of the congress to approve. Do you have
something in this area that we can use support on?" Ultimately, what will happen is
Senator Schatz, Senator Hirono, and Congressman Kahele will make that call out
and they will determine based off of their discretion whether they want to ask for it
to be included into the budget process, but it is still not guaranteed until both
chambers of the United States (U.S.) congress approves it and the President signs the
budget into law. So, there is no guarantee per se that an earmark would end up being
a consistent stream of funding, but part of the political process depends on who is in
the majority, who has seniority. Most recently, the Senate did their markup on this
Federal Fiscal Year's budget, and it seems to indicate that there is a support for
housing and housing-related infrastructure from Senator Schatz, Senator Hirono,
and Congressman Kahele, going into this budget that should be approved before the
end of this congress. Ultimately, that political process is never guaranteed, there
could be line-outs and strike-outs and God knows who is going to negotiate what in
the halls of that hallowed building, but at the end of the day, each member of congress
is allowed to ask, and whether the specific ask gets approved, it is subject to the
appropriations process of the U.S. congress.
COUNCIL MEETING 56 AUGUST 3, 2022
Councilmember DeCosta: Thank you for that elaborate answer, Mike. I
do know a little bit about how that system works. When we go to NACo, we rub
shoulders with the different Councilmembers. The point I am trying to make here is
that this is another mechanism besides our mechanism of cutting the budget, or
making appropriations. This is another mechanism that is out there to get funding
for housing, and that is all I wanted to make sure, that we utilize all of our
mechanisms to bring money home for the Housing Agency. Thank you.
Council Chair Kaneshiro: Councilmember Cowden.
Councilmember Cowden: I have a structural question about how our
budget works, so I am not sure if you are the right person to answer it, or if Mike is
the right person to answer, but we have a Reserve Fund that we talk about all the
time, and it seemed to have helped, where we keep so much money in reserve so if we
have a rainy day, which we have, we used it, and we refilled it. Can someone help
me understand the difference between that Reserve Fund and how it is structured,
and say the Open Space Fund, which is separated by the Charter. Our Reserve Fund
seems to be working. Could we have a Housing Reserve Fund? Help me understand
the difference.
Council Chair Kaneshiro: Ken could probably answer it because he was
on the Government Finance Officers Association (GFOA) Reserve Fund and
Structurally-Balanced Budget group. I will try and answer it and if Mike wants to
try to pick up, he can.
Councilmember Cowden: The GFOA is...?
Council Chair Kaneshiro: Government Finance Officers Association.
They are the branch that we worked with on preparing our Structurally-Balanced
Budget and Reserve Fund Policies. In the past, we were using our Reserve Fund to
balance our budget. That was a really bad practice. It is like we have our checking
account and our savings. Our savings is our reserve and our expenses were way
higher than what our checking account was, and we supplemented it with our
reserves. The Administration and the Council thought it was really important to
establish some type of structure, so that we do not keep going down this route. Every
year we would see the Reserve Fund depleting. Maybe we have a lapse in expenses
and the Reserve Fund would go up, but that was not the way to balance the budget
at the end of the day. We had all of these meetings and we came up with a
Structurally-Balanced Budget Policy and a Reserve Fund Policy. I can tell you, the
question came up during those meetings if we should do this as an ordinance, so that
it has to be done, or should we do it as a resolution that we can all agree on. As much
as we wanted to do an ordinance to make sure that it has to be done, we realized that
the Reserve Fund Policy would tie our hands in certain situations and it definitely
would have, in the past when we had the storms and we lost our transient
accommodations tax (TAT) moneys. I believe at that time we supplemented some of
our reserves to help fund our operations. If we had done an ordinance with those
policies, then we would not have been able to put reserves in and would have had to
raise taxes on something. We realized that we did not want to be that hamstrung on
doing those policies. We came up with two (2) resolutions: the Structurally-Balanced
Resolution and the Reserve Fund Policy Resolution. It does not have teeth as an
ordinance would, but we have been following that every year.
COUNCIL MEETING 57 AUGUST 3, 2022
Councilmember Cowden: There is a big difference between an
ordinance and a Charter Amendment too. You cannot just get out of a Charter
change. What I am wondering, how I see it, is that we did not have the political will,
meaning I am going to throw it at the Mayor's Administration, when we had an extra
forty nine million dollars ($49,000,000), I do not know how much more I could have
jumped up and down. For me, my big thing was the houseless community being
funded. It seemed to me that we did not have the political will. We put a lot of it into
our deferred maintenance, largely, and a few new job positions. Why can we not have
a Housing Reserve Fund where it is like the Budget Reserve Fund so we are always
putting some money in there. I am in deep agreement with what I heard from Council
Vice Chair Chock and Councilmember Evslin, it is very hard to sit there and I do not
want to say "claw back" four million five hundred thousand dollars ($4,500,000) out
of an already structured budget. It really needs to come from the Office of the Mayor.
We cannot work together and decide we are going to take four million five hundred
thousand dollars ($4,500,000) out of a budget that they give us other than if we pull
it out of the CIP budget. It is not so easy. GFOA, that is just an organization, right,
that helps us do something? Could we do a Housing Reserve Revolving Fund, the
same way we do the Reserve Fund? Does that not make sense?
Council Chair Kaneshiro: The Revolving Fund would be the Reserve
Fund. You could do a resolution that says we want to put "x" number of dollars into
that Fund every year. Whether we are hamstrung, we are not hamstrung by it, but
is setting a resolution that our intention is to put money in there. This last year we
put three million dollars ($3,000,000) into the Housing Revolving Fund, plus another
five hundred thousand dollars ($500,000) for the Dwelling Unit Revolving
Fund (DURF) loan interest payments. We are not putting any money into that Fund.
The Housing Agency received three million five hundred thousand
dollars ($3,500,000).
Councilmember Cowden: Can I ask my colleagues then, if we had a
resolution that said we wanted to put at a minimum "x" amount of percentage or
dollars in there...I get that we need to have a dependable amount of money that is in
there so they can leverage it. What is the difference? Why do we want it in the
Charter instead of a resolution the way that...I am just asking.
Councilmember Evslin: Resolutions in the past have been about peace
with North Korea.
Councilmember Cowden: Okay.
Councilmember Evslin: I think part of it is because a resolution is
worth the paper it is written on and that this would be binding. Maybe it is a question
for Adam, I do not think he could go out for a revenue bond using a commitment in a
resolution as he could go out for a revenue bond using a two percent (2%) Charter
Amendment.
Councilmember Cowden: Okay, that answers my question.
COUNCIL MEETING 58 AUGUST 3, 2022
Councilmember Chock: If the Charter Amendment does not pass,
then you can submit your resolution.
Councilmember Cowden: Alright. I will do that.
Council Chair Kaneshiro: Councilmember DeCosta.
Councilmember DeCosta: Councilmember Evslin, when Adam goes to
get his bond, because he has money in his account, is Adam the only person who can
get a bond, or can we as the County on a larger project, let us say we are going to tie
two (2) projects in, can the County, Mike, or Reiko folks get the bond with part of the
money going to housing and to other projects? Does it only have to be the Housing
Agency who floats bonds? Or can we float a bigger bond and kill two (2) birds with
one (1) stone? Can someone answer me?
Ms. Matsuyama: Yes, we have done that before. In 2017, the
general obligation (GO) bond that we issued was for Lima Ola as well as a multitude
of other projects. We do that every so often. I think the avenue that Adam is talking
about...it is different bond structures that might cater to developers and specific to
housing. Some of the bonds, like the special tax bond that Adam is going after now,
enable the developer to get Low-Income Housing Tax Credits (LIHTC). There are
other avenues besides GOs that Adam is exploring.
Councilmember DeCosta: I am just looking at those nine
thousand (9,000) homes that we are in a shortfall in 2050. Is the year correct? It is
something like that. I am looking at the fourteen thousand (14,000) cesspools that
are going to expire by 2050. Those are more homeowners than houses we have to
build. I am looking at our sewer infrastructure aging. I think we have big problems.
Maybe we can consolidate three (3) birds and kill it with one (1) stone with a good
sized bond. We have the landfill coming up. I think we have ideas and that is why
this Council can maneuver and put money towards it every year, if you agree we can
put more money there next year. I know, we have done it. I have been here for
two (2) years. You have been here for four (4) years. We have done it. That is all.
Ms. Matsuyama: On that note, too, Councilmember DeCosta,
we have State Revolving Fund (SRF) loans for wastewater and solid waste issues as
well. Those provide lower interest rates as well.
Council Chair Kaneshiro: Councilmember Cowden. I do not want to
stop any questions, but I do want to take public testimony before it gets too late. I do
not want to take a lunch break and have everyone wait for public testimony. Council
Vice Chair Chock.
Councilmember Chock: I would like a moment of personal privilege.
What I do not want to continue to happen is for us to go forward...I completely
appreciate questions and I think we are here to problem-solve. If we are here to make
a point when your mind is made up, that is another thing. Let us call where we are
and where we stand. Today is about making a decision on the Resolution. We all
have a vote. Let us move toward that direction here rather than trying to nitpick.
COUNCIL MEETING 59 AUGUST 3, 2022
There are many options before us. We have an option to make a decision on one (1)
of those things here today. I would like for us to move in that direction while asking
specific questions. If you have opinions, you should reserve them for your discussion
and vote. That is my only request.
Council Chair Kaneshiro: With that, I am going to take public testimony
now. We will see where the time is when they are done. I want to give the audience
and anyone waiting on Zoom the opportunity to testify now rather than waiting. I
think we are coming up on the lunch break. You can wait if you want and come back
after lunch, but I want to give you the option of testifying now. While the rules are
still suspended, is there anyone in audience wishing to testify on this.
Ms. Fountain-Tanigawa: We have registered speakers. The first
registered speaker is Alice Parker, followed by Dana Hazelton.
Ms. Parker: I think this is a good idea, a Charter
Amendment. It is not carved in stone. As we saw with the Supreme Court, things
can be overturned and we can rescind it later if it does not work out. We desperately
need housing now. Mahalo.
Ms. Fountain-Tanigawa: The next speaker is Dana Hazelton, followed
by Ken Shimonishi.
DANA HAZELTON: Aloha. I am testifying in support of
Resolution No. 2022-22 to establish a Housing Development Fund utilizing two
percent (2%) of the real property tax revenue. As the provider and Director of the
Coronavirus Rent and Utility Assistance (CRUA) Program that works in partnership
with the County of Kauai, we have seen an alarming trend in our rental housing
market. In the last eight (8) months our team has had a drastic increase in calls,
E-mails, and texts from panicked residents that are being displaced and moved out
of their current housing situation and cannot find new rentals. The majority of this
anecdotal evidence is from employed local residents. Those reaching out range from
young families, single-parent households, young professionals, and an alarmingly
high amount of kupuna. Rental market rates have drastically increased as well,
leaving many rentals out of the affordable range for the majority of local residents
living at or below eighty percent (80%) of the area median income (AMI). In December
of 2021, driven by the fact that we had many applicants that were on the verge of
homelessness, our team went to local motels, hotels, and inns, and rented out blocks
of rooms for three (3) months at a time as transitional housing. Along with this, I
asked our team to do an independent review of the available public housing properties
on our island.
These are the results of our survey and I have an attachment. Affordable
housing properties. Kolopua Apartments, waitlist approximately one hundred
fifty (150). Time to clear waitlist, the waitlist has never cleared. Applicants wait for
over a year on the waitlist. Koa`e Makana-Koloa, waitlist approximately four
hundred fifty (450). Time to clear waitlist, the waitlist has never cleared. Applicants
wait for over a year on the waitlist. Kalepa Village II, waitlist for one-, two-, and
three-bedrooms, one-bedroom approximately forty (40), the list goes on. Kalepa
COUNCIL MEETING 60 AUGUST 3, 2022
Village III, waitlist for one- and two-bedroom apartments. The waitlist never clears.
The waitlist has increased since the pandemic and waitlist applicants wait for over a
year on the waiting list. Pa`anau Village II-Kbloa, waitlist for one-, two-, and
three-bedrooms, one-bedroom approximately one hundred fifty (150), two-bedrooms
approximately eighty (80), and three-bedrooms approximately eighty (80). The
waitlist never clears. Lihu`e Court waitlist. Hawaii Public Housing Authority. The
waitlist has been closed since March of 2020. Clearing of waitlist when opens depends
on income qualifications and size of family. It takes six (6) months on average to
one (1) year for people to be housed.
In our efforts to temporarily rent some of these motels and inns, it ended with
the ferocious return of visitors now in need of short-term accommodations. Our
difficulty in running rental relief is not disbursing these funds, our problem is that
there has become a severe shortage of affordable units for our community to live and
rent.
Council Chair Kaneshiro: Dana, sorry, that is your first three (3)
minutes. You can come back for another three (3) minutes.
Ms. Hazelton: I am done.
Council Chair Kaneshiro: If you need another three (3) minutes you can
come back for it.
Ms. Fountain-Tanigawa: Ken Shimonishi, followed by Addison
Bulosan.
KEN M. SHIMONISHI: Aloha, Councilmembers. Just to clarify, I am
here on my own personal time to provide my own personal testimony. As I stated at
the public hearing held on July 20, 2022, I remain fully supportive of contributing
funds towards housing development, but I strongly oppose the use of the Charter to
enact such funding. Rather than rehash these arguments against the Charter use, I
would ask the Council to consider alternative methods to achieve the same, or in
certain circumstances, I believe the possibility of increased funding. I am glad to hear
that Councilmember Evslin was"all ears"with the healthy discussion that was before
us on different alternatives.
First, I would ask the Council to consider revising the Structurally Balanced
Budget Policy. This Policy is based on the principle that recurring revenues over
recurring expenditures. Revision to this Policy could include the two percent (2%)
real property tax revenue contributions towards the Housing Development Fund as
a recurring expenditure. This will bake into the County's budget process the funding
currently being sought through Resolution No. 2022-22. Second, consider revising
the Reserve Fund Policy. This is two (2) parts. This Policy sets the amounts to be
held in reserve, the priority for funding the reserve, the use of the reserve, as well as
any funds that exceed the reserve target. The first part of the revision for the reserve
excess, which are the funds above the target, is now to include funding towards
housing projects. I would also ask that you consider removing the road and bridge
repairs, because the Reserve Fund Policy was passed in March of 2017, and this was
COUNCIL MEETING 61 AUGUST 3, 2022
before we actually passed the general excise (G.E.) tax surcharge. The tax surcharge
came in December of 2017 and we have a dedicated source with that. That could
justify removing the roads and bridges and putting in the housing projects.
The next piece is to revise the use of the reserves themselves, again, to include
temporary funding for housing infrastructure and land acquisition with timely
replenishment of the use of reserves. An example of this could be no more than
twenty percent (20%) of the reserve target and based on a reserve of fifty million
dollars ($50,000,000) that would allot ten million dollars ($10,000,000) to be readily
available. This should be followed by requesting the Director of Finance to provide
funding options through third-party lenders, such as bond issuance, et cetera, that
could be used to replenish the reserve.
Council Chair Kaneshiro: Ken, that is your first three (3) minutes.
Mr. Shimonishi: Sorry, I will come back.
Councilmember Cowden: Can I ask him something?
Council Chair Kaneshiro: If Ken is going to come back, let us have him
finish his testimony and answer the question later.
Councilmember Cowden: I just want to ask him if we can have a copy of
what he is reading from?
Mr. Shimonishi: Okay. I have some scribbles on it.
Council Chair Kaneshiro: You can E-mail it to us if you do not want to
give us your scribbles. You might have other notes on there. The next speaker is...
Ms. Fountain-Tanigawa: Addison Bulosan.
ADDISON BULOSAN: Good morning. I am testifying in support of
this Resolution. I love the discussion and I love what you are working on. I really
appreciate the concerns that you all brought up and the things that you are looking
at in doing the due diligence in looking at this Resolution. I am in support of it
because, as you mentioned Councilmember Carvalho, you talked about looking at all
avenues or ways that we can solve these challenges. The housing problem is not a
problem, it is a crisis. I want to say that you are doing that right now. This is the
opportunity to enable the community—because it is a Resolution, and it affects the
Charter and a long-term thing—what is does is it empowers our community to say
and look at this problem that we can be a part of it. I think that is one of the biggest
disconnects that is happening. You probably get a call every day,just like I do, where
a cousin, uncle, grandma, or whole family...it is heartbreaking to get those calls with
them asking for housing and not looking at any other solutions besides what is at the
table. I think this is one of the most creative ways to address this problem, and one
of the best ways to look at it as a long-term solution that could enable this County to
really leverage opportunities in the long run. I do not mean the next couple of years,
but in the long run. We all know here with you all at the table and us sitting in these
COUNCIL MEETING 62 AUGUST 3, 2022
seats, we all know that this is not something that we are going to solve with just this
one (1) solution. We know it is going to take several big steps. It is not going to be
small steps. I feel like this Resolution, if passed today, will give the opportunity to
go to the General Election and give the people the opportunity to voice their support
of this particular solution for housing. This could empower the community in a way
that you have never seen before. It might create more ideas and I love the ideas that
Ken brought. That is the discussion that we want to have. Particularly to this
Resolution, if passed today, it could open up more doors for our community. Lastly, I
just want to close with...when I think about the challenges right now, the one thing
that I am so passionate about right now is...my cousin just left. She just gave birth
three (3) months ago. She had to move. She is a nurse, and her husband is a teacher.
They cannot afford to live here. Those are two (2) good-paying jobs contributing to
the community. We have to do everything possible to address these challenges. I
really truly believe that this is an opportunity for our community. Thank you.
Council Chair Kaneshiro: Thank you. Is there anyone in the audience
wishing to testify? Lonnie.
Mr. Sykos: I want to thank three (3) people here today. I
want to thank Councilmember DeCosta, Council Chair Kaneshiro, and I want to
thank the gentleman here running for the County Council. These two (2) I agree
with, and I have the opposite opinion about almost everything...
Council Chair Kaneshiro: Lonnie, please keep your comments
addressed to me, please.
Mr. Sykos: Towards the Council Chair...the Council has
very many different ways to route money. You all have explained that. We heard
that from one of our County experts. The County solely is political will. Solely. By
trying to create this Charter Amendment, you are trying to absolve yourselves, the
Council in the future, of having to have the political will to put money into housing.
I have a question for the Council Chair to ask the Members. Where in the Charter
am I supposed to get taxed for housing for a workforce? Where in the economy in
America do you charge the workforce housing to build housing for the workforce?
Does that make sense? It does not. Until you address why there is a lack of housing,
you are not going to present arguments that do not get all of this blowback. You are
not addressing the root of the issue. One (1) of the roots of the issue, because there
are many, is the fact that so many workers on this island make poverty-level wages.
If you make poverty-level wages, everywhere in the world, how do you not live in
poverty if all you make is poverty-level wages? Where in the world do people living
in poverty buy houses? Where in the world do people that live in poverty, have
poverty-level wages, where do they support themselves in a wealthy community? I
am totally opposed to this, because you are just tying the hands of future mayors and
you lack the political will to pay; if this is what you want to do, pay the Housing
Development Fund first. This is like me wanting to have a savings account. I pay
myself first, then I pay everything else in life. If in fact housing is the most important
thing, pay it first.
COUNCIL MEETING 63 AUGUST 3, 2022
Council Chair Kaneshiro: Thank you, Lonnie. That is your first
three (3) minutes. Bruce.
BRUCE HART: It seems to me that what Councilmembers
Evslin and Chock are trying to achieve is a guaranteed income. Having that
guaranteed income, then they are going to be able to leverage...for the public that is
borrow money against that income. That is why it needs to be guaranteed. When
you go out and try to get the loan, a guaranteed income is going ensure that they are
going to lend you the amount of money. Former Mayor and Councilmember JoAnn
Yukimura had an article in the newspaper. She gave numbers and I hope they are
accurate. I love JoAnn and I figure they are. She was saying that if we brought one
thousand (1,000) units online and we were to leverage and borrow funds that we
would be talking about four hundred million dollars ($4,000,000). We have a
projection of nine thousand (9,000) units that we need. That is four hundred million
dollars ($400,000,000) for just one thousand (1,000). If we take that by a third (1/3),
we are over one billion dollars ($1,000,000,000) that we have borrowed. I cannot see
that that is good for any one of us to be leveraged out. If you had the guaranteed
income, then you would be able to borrow that much. There is a whole lot of details
that I would like to ask questions on. What if we do not have that income some years?
Who is going to pay for those loans? What is the interest on those loans? Where is
the infrastructure for building these projects going to come from? It is not going to
come from this Charter Amendment. In short, I am very interested in what our past
Director of Finance Ken Shimonishi has to say. I would like to hear all of it. There
are other ways to do this. I do not want the Council, the legislative body, to give up
its power to be able to legislate funds. People who want funds from the legislative
body should come to the legislative body and ask for those funds. I am not for this,
not as a Charter Amendment. Thank you.
Council Chair Kaneshiro: Is there anyone else wanting to testify for the
first time?
MAX RICHARDSON: Am I allowed to speak?
Council Chair Kaneshiro: If you want to you can.
Mr. Richardson: I have to put the camera on me first.
Councilmember Chock: This is a first.
Mr. Richardson: For the benefit of the public, I am the camera
guy. I usually sit right over there. I do not actually work for the County of Kauai. I
work for a company that lends me to the County to operate their cameras. For the
benefit of everyone who is paying attention, I want to make it clear that I am not
sitting at this podium representing anyone other than myself, as a private citizen and
a member of the voting public. To be honest, I do not know if it is the best idea for
me to be sitting at this podium at all, considering I have a professional relationship
with all of you. I am utterly flabbergasted. When I was in the military for eight (8)
years, I find it difficult to be astonished. Today, I am astonished and blown away.
Congratulations, because I am blown away. It was not very long ago at the budget
COUNCIL MEETING 64 AUGUST 3, 2022
hearing where Councilmember Evslin introduced a proposed amendment to the
budget for taxing TVRs for the purpose of increasing the budget for housing. All the
resistance that he met boiled down to not liking tax increases. Okay, I do not like
them either. Taxes are a bummer. That only guarantees it for one (1) year. That
does not guarantee that future Councils in future years will give this money for
housing. We are going to take extra money for the foreseeable future, but we are not
necessarily going to be given to housing. It has to be done via the Charter or
something like that. Then, he proposes a Charter Amendment, then everyone says
that we cannot have a Charter Amendment and why do we not handle this during
the budget. I am blown away by the fact that I and other intelligent members of the
public are expected to believe that grown adults have a memory that bad. You did
not forget; you are being disingenuous. You literally have resisted these two (2)
separate proposals for opposite reasons. Which of those two (2) political opinions is
true? They both cannot be true. You cannot think that authorizing it through the
budget process is not permanent enough, so we cannot justify authorizing it, but also
authorizing a Charter Amendment is too permanent, so we cannot justify authorizing
it. You cannot think both of those things. I do not know. Do you just not like
Councilmember Evslin? Does he microwave fish in the breakroom? That is all I have
to say. I could go on, but I work here.
Council Chair Kaneshiro: Is there anyone else wanting to testify for the
first time? Second time, Alice, do you want to talk again?
Ms. Parker: Lonnie brings up good points. Max brings up
good points. Whatever we do, we need funding for housing and we need a bus stop
on Pahe`e Street to get to urgent care, emergency, Veterans Services, Dynasty Court,
and Kauai Island Utility Cooperative (KIUC). Councilmember Carvalho was
working on it. Keep going. Mahalo.
Councilmember Carvalho: You go, Aunty.
Council Chair Kaneshiro: Dana, did you want to speak for a second
time?
Ms. Hazelton: The real reason I am here is because I have
been a public health nurse for twelve (12) years in our community. I am trained to
understand when there is a disease condition that is causing massive trauma. Now
that I am in the community development and finance space, I am here to tell you that
running the rent and relief program and hearing the people on the other line, who
are our family members, friends, loved ones, business associates, and Members of our
own County Council...we are so connected in this community and the fact that we
cannot figure out the solutions right now during a crisis...We are in an emergency,
we do not have time to wait. We are losing our population. Whatever you decide to
do is fine and dandy, but we have to decide something now or we are not going to be
able to talk about this in a couple of years. We will not have a housing market. We
will become a bedroom community of retirees who are getting the lowest property
taxes in the United States of America for their investment properties. That is all I
have to say.
COUNCIL MEETING 65 AUGUST 3, 2022
Council Chair Kaneshiro: Ken, did you want a second time?
Mr. Shimonishi: Again, I think I left off requesting the Director
of Finance provide funding options through third-party bond issuance, et cetera to
replenish any reserve amounts used for housing. Fourth, look to exercise Charter
Section 19.10A, which basically says that if during the year, the Mayor or Council
certifies more revenues from sources not anticipated or revenues in excess of budget
estimates, supplemental appropriations may be made. Here, I have actually given
five (5) things to look at to try to address this issue of funding for housing without
significantly impacting the budget flexibility nor requiring a Charter Amendment.
While the Structurally-Balanced Budget and the Reserve Fund Policies have been
crucial in turning the County's financial position around and some may be hesitant
to tinker with any revisions, it is my belief that the revisions I have proposed will not
adversely affect the County's financial position going forward, as long as both the
Council and the Administration agree to adhere to these policies. At the last
testimony I gave I had mentioned the lack of a policy. I think that is where the crux
is as far as the debate on how we get this done. Hopefully you find my testimony
enlightening and thank you very much.
Councilmember DeCosta: I have a question for him.
Council Chair Kaneshiro: Is it a clarifying question?
Councilmember DeCosta: You sound like an expert. Please tell me your
educational background and what you have done in your career. Just so I can solidify
your words of credibility.
Mr. Shimonishi: I just want to correct the record. The other
testifier referred to me as the Director of Finance. I am not the Director of Finance.
I did serve under former Mayor Carvalho as the Director of Finance towards the end
of his term for almost four (4) years. I was hired at the County as a Budget Analyst
and I currently serve as the Budget Administrator. I participated in getting the
Long-Term Financial Planning Project, which adopted these two (2) policies that I
referenced, enacted or passed during this administration.
Councilmember DeCosta: Do you have any finance, economics, or
business degree?
Mr. Shimonishi: No. I have an accounting degree, but that is
it.
Councilmember DeCosta: That is plenty. Accountants are smart people.
Thank you.
Council Chair Kaneshiro: Council Vice Chair Chock.
COUNCIL MEETING 66 AUGUST 3, 2022
Councilmember Chock: I am intrigued by the policy idea. I think that
is something that we should continue to explore. Under the current policy, for
instance, when we have utilized the Reserve Fund for the pandemic or so forth,
anything that we needed, what process is within the policy that will allow or ensure
that there is a circular...I am not pointing fingers and I think that it has worked
well...but ensures that both arms of the government have a say into how much
attributed per calendar year for such? Are you saying that the two percent (2%) can
be built into it and be bound by it?
Mr. Shimonishi: What I.am saying is that the two percent (2%),
if the County was to define that as recurring expenditures and revise the
Structurally-Balanced Budget Policy to say that this two percent (2%) amount is
defined as recurring expenditures, that would give us the starting point to include it
in the budget going forward. That difference would only be, as Councilmember
DeCosta mentioned, the seven hundred thousand dollars ($700,000). We would start
by putting in three million seven hundred thousand dollars ($3,700,000) and saying
that we would consider this as being needed to cover before doing anything else.
Council Chair Kaneshiro: Okay, thank you. Addison.
Mr. Bulosan: I am speaking on behalf of my own personal
self as an individual. I really appreciate all of the comments that have been
submitted. I just wanted to reiterate and come back around that I am in support of
this Resolution and to echo that this is going to go as a Charter Amendment to the
General Election. This also allows the voters in the community to decide on it. I
think a lot of the concerns that you brought up are valid and important concerns. If
the community truly feels the same as you, they will vote it down. If they feel like
this could help and make a positive dent in the challenges that we are facing in this
housing crisis, then you will know if it is voted through by the community, that you
made the right decision and allowed us to be a part of the solution with you at this
level. I just really want you to consider that when you take the vote today, to really
understand that this might be a tipping point. This might be one of the many tipping
points that you have every day at this table that might just give us hope as a
community to be able to keep calling this place home and potentially have some of
our local people come back home. I appreciate you deliberating on these awesome
ideas and appreciate all of the comments and testimonies that have come through so
far.
Council Chair Kaneshiro: Next up is Lonnie.
Mr. Sykos: To the members of the public who listen to
this, you should be aware of the absolute naivete of someone who says, "If we create
this Charter Amendment and it turns out to be problematic, it is easy to undo it."
First off, it takes two (2) years, electoral cycles. In reality, you are going to be stuck
with it for four (4) years while it gets fought out in the Council and public most likely.
Of the things that this County constantly suffers from are the unintended
consequences of the bad decisions made in the past. That is a tremendous amount of
the business that this County Council deals with, is cleaning up the past. Creating a
new Charter Amendment, blessings for everyone for wanting to create housing. I will
COUNCIL MEETING 67 AUGUST 3, 2022
ask again, where in the County Charter or where in the State Constitution is this
body responsible for building workforce housing, elderly housing, disabled housing,
et cetera, all of these specific groups of people. The Federal funding is not what I am
talking about. Labor housing needs to be built by the industry that hires the labor.
How are you going to build nine thousand (9,000) units? Ms. Yukimura told us what
the costs are going to be. Thinking that we are going to build nine thousand (9,000)
units a few million dollars a year at a time is not going to accomplish it. This is a
bigger issue. Yes, the County needs to generate and have a kitty of money to put into
building housing, but if we are going to build thousands of units of housing, the
Administration and the County Council have got to start working on figuring out how
to make it attractive to the industries on the islands that are suffering from not
having employees that it is time they build employee housing they should have been
building continually for the last thirty (30) years. You have to leverage our money
with the industry. The Charter Amendment does not help do that. It does not at all.
I am utterly opposed to this Charter Amendment and I am totally in agreement to
create a fund to build up money for housing. Thank you.
Council Chair Kaneshiro: Bruce.
Mr. Hart: I got pretty excited. This issue got me here.
It got me up this morning. I went to my physical therapy and I came to speak on this
issue. A Charter Amendment, in my opinion, is not the way to do this. I think that
there are repercussions and consequences down the road that we will regret. The
Charter is something that organizes government and structures government. It is
not something to be used for a budgetary process. It is a serious matter to add an
amendment to the Charter, along with all of the other discussion. There is something
that I really enjoyed and that was as Ms. Yukimura would say, "robust discussion"
amongst all Councilmembers as to other options. All of you entered into the
discussion. I believe that as has been mentioned, the political will if you put your
mind to it and work in unity as I have stressed so often from this chair, that I believe
it can be accomplished. I appreciate the same goals that Councilmember Evslin and
Councilmember Chock have put in to this effort, they have put a great deal of energy
and time into it. I appreciate that. I believe with that same kind of effort on the part
of every Councilmember, you can tackle this problem. That is my feeling today. Work
together to solve and to accomplish what they wanted to accomplish in a way that we
can all agree upon. Thank you.
Council Chair Kaneshiro: Thank you. It seems like everyone here has
testified. Is JoAnn still online? JoAnn, you will get your full six (6) minutes because
you are on Zoom.
JOANN A. YUKIMURA (via remote technology): Thank you for this
opportunity to testify. I am here to implore you to approve Resolution No. 2022-22,
which proposes for voter approval, a key element of a real housing solution. I speak
on behalf of the working families and individuals on Kauai who are crowded into
housing that is far too small and/or who are paying more than fifty percent (50%) of
their household income for housing, which is not sustainable. I speak for young
workers like the dedicated staff members of the Boys and Girls Club and other
nonprofits and businesses who want to stay and work on Kauai but are struggling to
COUNCIL MEETING 68 AUGUST 3, 2022
make it here. I speak for their employers who desperately need these workers. I
speak for businesses who cannot find employees because people are moving off the
island. I speak for the many who are suffering because mayors and councils
throughout the years have not provided sufficient affordable housing. In this election
season, there is talk ad nauseum about the housing problem. Sometimes it seems
candidates and voters think that by talking about how bad the problem is we will get
closer to a solution. Please, enough talk. We need action. Not superficial action. Not
poorly analyzed action. We need effective action, as proposed in the Resolution. The
simple fact is you cannot build housing without money, lots of money. It costs an
average of five hundred thousand dollars ($500,000) to build one (1) housing unit. At
that rate, the three million seven hundred thousand dollars ($3,700,000) generated
by a two percent (2%) earmark will provide maybe seven (7) to eight (8) houses. But
over ten (10) years, the earmark will provide thirty-seven million
dollars ($37,000,000) and even more money, about fifty million dollars ($50,000,000),
can be produced through a bond float. Used strategically with other moneys, the
earmark can build many homes. It can buy land like at Kalepa and Rice Camp. It
can install infrastructure like at Kalepa. If you choose to say no to this and prevent
the voters from having a say on this critical issue, please tell me and the voters how
you personally are going to consistently provide that large amount of capital needed
to solve the problem. Please do not say that the budget process is the answer.
I have been part of twenty-two (22) budgets as a former Councilmember. I
have seen first-hand how the Council never begins budget sessions with a clear
consensus on priorities. Especially during election years, popular issues like real
property tax breaks, pay raises, or "pet projects" get funded, but not basic needs like
roads, sewers, or housing. The proof of this is what happened in your last budget
session when this Council turned down a proposal to allocate four million five
hundred thousand dollars ($4,500,000)for housing. You may say, "But that is because
we did not pass the real property tax rate increase on vacation rentals." Why did you
not take the moneys from the existing budget? Not just ask Councilmembers Evslin
and Chock to do it. Why did you not propose it? Because there was not enough money,
right? But why was there not enough money for one of the County's top priorities?
Because it went to other uses, such as a one-million-dollar ($1,000,000) subsidy for the
Wailua Golf Course. A budget resolution as suggested in all sincerity by Budget
Administrator Ken Shimonishi will not work. A budget resolution can be changed
from year-to-year. I saw that happen with the Open Space Ordinance several years
ago. A Charter earmark is the only way to protect a priority of extraordinary
importance from being gobbled up by other demands. No other mechanism thus far
discussed can do that. Ken's suggestions require the Council and the Mayor to agree. Well,
we have not seen that happen through budgets. This Charter Amendment would be like, at
the household-level, like a money-strapped family trying to save for a home or college
education which they have deemed to be their highest priority. Because the saving
goal is so important, money is put aside before any other expenditure is made. This
is done with a discipline that knows that if you wait until all the other payments are
made, you will never achieve your most important goal. The concerns about
inappropriately using the Charter to budget are legitimate if one is trying to do a
substantial part of the budget by Charter, but that is not the case here. We are
talking about earmarking two percent (2%). That is three million seven hundred
thousand dollars ($3,700,000) out of the one hundred eighty-five million
COUNCIL MEETING 69 AUGUST 3, 2022
dollars ($185,000,000). In my opinion, the proposed Charter Amendment does not in
any way put the County budgeting process nor the Charter at risk. We heard Reiko
Matsuyama say, it is the "slippery slope" on the decisions you make after that, but
not the decision per se to earmark moneys for affordable housing. This is your
one (1) chance to take action and address the housing problem in a significant way.
Please show your leadership and courage, which I know you have, and do the right
thing for the people of Kauai. If this Resolution does not pass here today, I will hold
each one of you and Mr. Shimonishi and anyone else who has proposed these
resolutions to make it happen. Otherwise, it is just a pipe dream.
Council Chair Kaneshiro: JoAnn, that is your six (6) minutes.
Clarifying questions?
Councilmember DeCosta: I do, actually. I would like to know who you
are directing your testimony to? I was the only one who asked Councilmembers
Evslin and Chock about what they cut. Were you directing that to me, JoAnn?
Ms. Yukimura: No, I see it as a responsibility of all
Councilmembers who are working on the budget.
Councilmember DeCosta: Can I answer from my perspective?
Council Chair Kaneshiro: No.
Councilmember DeCosta: She asked why I did not cut it.
Council Chair Kaneshiro: You can answer it in your discussion if you
want.
Councilmember DeCosta: Okay. Thank you, Council Chair.
Council Chair Kaneshiro: Are there any further clarifying questions
from the Members? Councilmember DeCosta.
Councilmember DeCosta: You had said that in your written testimony
over E-mail, you had forty-four million dollars ($44,000,000) from Hurricane `Iniki.
Ms. Yukimura: Forty-two million dollars ($42,000,000).
Councilmember DeCosta: Was that a government insert of funds?
Ms. Yukimura: Do you mean a government earmark?
Councilmember DeCosta: Yes, were those government moneys or
County moneys?
Ms. Yukimura: It was Federal money secured by Senator
Inouye and the other members of the Congressional Delegation after `Iniki as
emergency moneys, because we had two thousand (2,000) families without housing.
COUNCIL MEETING 70 AUGUST 3, 2022
Councilmember DeCosta: Okay, I understand. My last question, since
you were Mayor, did you put any money into housing besides what the Federal
Government gave you?
Ms. Yukimura: We had forty-two million
dollars ($42,000,000).
Councilmember DeCosta: Did you put any moneys into housing as the
Mayor?
Ms. Yukimura: We had enough money when we had forty-two
million dollars ($42,000,000).
Councilmember DeCosta: Okay, thank you.
Council Chair Kaneshiro: Are there any other further clarifying
questions? If not, is there anyone else on Zoom wishing to testify? None. I believe
we got through all of the testifiers that are available. We are at the lunch break so
we will take a one (1) hour lunch break and we can ask more questions and end with
final discussion then vote.
There being no objections, the meeting recessed at 1:07 p.m.
The meeting reconvened at 2:03 p.m., and proceeded as follows:
Council Chair Kaneshiro: Welcome back. Do we have any further
questions for the Administration or for the introducers? If not, is there any final
discussion from the Members? Councilmember Evslin.
Councilmember Evslin: Thank you for the discussion. We had a
vibrant discussion and I appreciate it. It is pretty clear what direction this is going in,
so I will not belabor this too much. I do want to respond briefly to some of the testimony
from Lonnie. Lonnie, you said a few things in your testimony. The first was that we
should have a policy of"pay it first" to the Housing Agency. This is what this would do,
right? It would prioritize funding going to the Housing Development Fund first.
Second, you asked what is in the Charter that says we should be raising taxes for
residents to pay for this? The answer is nothing. This would not raise taxes on
residents. As I said earlier, the funding is there because of increases to the Vacation
Rental and Residential Investor tax class rates, which have already happened. The
Transient Accommodations Tax (TAT) is also bringing in marginally more money. As
we have discussed a lot, the potential is there for a lot more funding by increasing the
TVR tax rate in the future. There is nothing in here that would necessitate an increase
in residential taxes. You also mentioned where does it come from and what policy
document says that we need to even be providing County funds for affordable
housing...the answer is that it comes from the General Plan. Policy Number 8 on the
chapter on housing says, "Pursue and establish a source of capital for the development
and maintenance of affordable housing. Possible sources include earmarking a
percentage of real property taxes for affordable housing development." Again, it says
earmarking a percentage of real property taxes and it comes straight from the General
COUNCIL MEETING 71 AUGUST 3, 2022
Plan. Lastly, we have talked some about the depth of our housing crisis. I just want to
acknowledge that doing this is certainly not going to solve our housing crisis. It is
important to look at the housing crisis as two (2) separate, but related crises. On one
side we have a housing supply crisis. A lack of housing drives up the market price of
housing and we need to do all we can do increase the supply of housing through all of
the things that we have been doing on the Council, and we need to continue doing what
we can to bring down the market price of housing. On the other side, as Lonnie said
and I agree, we have an income crisis in that a large segment of our community does
not have the income to afford housing. That includes most of our working-class
residents right now. We need to address it from both ends. No matter what we do to
bring down the market price of housing, we are still going to be left with this income
issue in that a smaller and smaller percentage will be able to afford housing, but there
will always be that component in the community. We must address it, in my opinion,
with more dedicated funding to our Housing Development Fund to ensure that we are
doing more housing construction. I hope that this can pass. I am realistic that this will
likely not pass. Thank you for the dialogue and I think we have some clear solutions
moving forward, other than this if this possible does not pass here today.
Council Chair Kaneshiro: Councilmember Kuali`i.
Councilmember Kuali`i: I just wanted to mention, and I am grateful for
this, we received some very thoughtful testimony from our Prosecuting Attorney
Rebecca Like. She wrote, "Without a home, individuals are more likely to become
entangled in the criminal justice system and need emergency medical care. No factor
matters home to homelessness than access to housing. Not poverty, mental illness, or
addiction." She mentioned the lack of access to affordable housing hurting Kaua`i's most
vulnerable, including our children and victims of crime. She also says that "Increasing
affordable housing is also a step towards addressing the legacy of colonialism and
systemic racism." She closes that, "Codifying an earmark of two percent (2%) of the
County's real property tax revenue guarantees a steady stream of public funding to
increase the island's housing inventory."
Council Chair Kaneshiro: Councilmember DeCosta.
Councilmember DeCosta: I will follow Councilmember Kuali`i. Where do
we begin? I would like to begin with Ken Shimonishi who was former Mayor Carvalho's
Director of Finance and now Budget Administrator. He seems like an expert in his
field. I would like to think that all of us have our expertise. If there were ranching
questions, maybe you would ask me. If you had accounting questions on our taxes, you
would ask Council Chair Kaneshiro. I am pretty sure we all have specialties. The
Budget Administrator said that there are other mechanisms to get funding. We saw
today in our fruitful discussion...we came up with several mechanisms to get money. I
do not know if I did not follow the directives of how we do budgeting, but I remember
walking over to Adam's office, once with Councilmember Evslin, and I have gone to the
Managing Director's office to talk about this allocation of funding. None of it was
reiterated more than what we already had this year with the three million
dollars ($3,000,000) plus the eight million five hundred thousand dollars ($8,500,000)
from Senator Schatz, and I believe we had a little more of a carryover. We had almost
fifteen million dollars ($15,000,000). The mechanism is in place. We have the ability
COUNCIL MEETING 72 AUGUST 3, 2022
to cut or add during the budget process. That is why the voters vote us in. We heard
some testimony about leaving it in the voters' hands. I believe there are a lot of people
who vote us into office to make those crucial decisions. If not, they would run for office
themselves. A lot of them do not understand. A lot of them hear the words "public
housing"or"affordable housing,"those are buzzwords and they get excited. I know each
one of us cares about affordable housing. I told you all before that I have two (2) rental
units that are rented affordably to local people. It is an affordable rental. I can rent it
for a lot of money. I live in `Oma`o in the mountains. I do not rent it for a lot. I rent it
for families. Listening to Mayor Kawakami's Administrative Team who put money
towards affordable housing for four (4) years in a row, listening to former Mayor
Carvalho, and former Mayor Yukimura, who did build affordable housing with
government funding and nothing more. Mayor Yukimura said she did not put County
moneys into housing. She had government money. We brought it to Adam's attention.
We said, "Adam, are you getting government funding?" He learned a little bit and he
levied money with Senator Schatz. He was lucky. There is a mechanism through that
route. Former Mayor Carvalho told me that Mr. Cobb-Adams really did a good job of
reaching out to the Federal delegation to lobby them for moneys. Let me tell you, we
have a landfill that is aching for funding, probably in the range of one hundred million
dollars ($100,000,000), if that is even enough, with land that we have not even acquired
yet. We have fourteen thousand (14,000) homes that have cesspools that we have to
convert. Housing is a crisis. I know we should make it a priority. To me, it is a priority
and we showed that in this last budget session. With that being said, I would like to
end my first go-around with...our voters need to be informed that affordable housing is
at the top of our list. In my opinion and my vote will be not to change the Charter like
it is a document that we can revise every couple of years. The Charter is like the
Constitution. That is what I was told. It is an organism that organizes and shows us
structure within how we do government. Until we exhaust all mechanisms and the
least restrictive way to put funding into housing, I think I would like to give next year's
Council the chance to put more money into housing. Thank you.
Council Chair Kaneshiro: Councilmember Carvalho, then
Councilmember Cowden.
Councilmember Carvalho: There is no doubt that affordable housing is a
big crisis. We have talked about it over and over again. Wearing my past hat, being
able to really reach out, connect, and develop affordable housing...we developed
Kolopua, Kaniko`o, and starting Lima Ola. Now we are seeing things come to life. Yes,
there are challenges there, but we knew that was going to happen...Koa`e in Koloa is
another one. The bottom line is that I feel strongly that we need to stay focused and
the Charter Amendment route for me is not the way to go. We have developed a process
and the process for me was the Revolving Fund that we have. We took charge of that,
we put it into place, and it is there. We have a process in place. We, as Councilmembers,
our kuleana is in the budget process. We can set aside the funding that is needed. I
think it is important that we look at that. There is actually a process that can be
followed to create housing in all areas. I feel strongly that we need to stay connected
and follow through on all of our efforts. For me, we can get to the same result in a
different way. That way would be the Reserve Fund process, the GFOA process,
reaching out and connecting those resources, and bring back those resources to the
County, especially with the budget process we have. We can put in more money and
COUNCIL MEETING 73 AUGUST 3, 2022
discuss it working with the Administration and the community. We have that process
in place and need to build upon that relationship and connection. That is where I am
at right now. Again, there are processes that have been done that we can follow, that
will make a difference instead of going the Charter Amendment route.
Council Chair Kaneshiro: Councilmember Cowden.
Councilmember Cowden: I also feel like housing is an absolute crisis.
When I look at a Resolution like this, I feel like it is a blunt, but imperfect instrument.
I am always worried about unintended consequences. Many policies that we have with
the best of intentions push our existing population out of their homes. I do not want
that to happen. However, where I differ from what my colleagues are saying is that I
find that the process is very difficult. If the Office of the Mayor, when they give us the
budget, if they give us a budget that already includes it in the Housing Revolving Fund
then we are going to have it. If we do not, to be able to decide that we are not going to
buy that fire truck, or we will not buy this piece of heavy equipment...that is why I
actually asked during the earlier discussion on roads...how do we know where to get it?
We do not, for the public's sake, we cannot talk about it privately. We do not know as
we are going line item by line item, it is nearly impossible to just scratch out four million
dollars ($4,000,000) or five million dollars ($5,000,000) anywhere than probably pulling
from the Capital Improvement Projects (CIP) budget. What I see as the benefit of this
ballot question...it is up to the voters...the benefit of it if it goes into the Charter...if we
have a Mayor two (2) or three (3) times down the road, they almost cannot get out of
this. They said they could easily change their mind. They cannot easily change their
mind. The voters have to change their minds. That would be very difficult to make a
change. I am going to be voting to support the Resolution. If it does not pass for the
voters or it does not pass now, I really like what Ken Shimonishi put here. We could do
a simple resolution to create that piece, the way we have with the Reserve Fund.
Regardless of how we get there,we have to get there. We have to put some money aside.
I will be voting yes for this Resolution, because it is a step towards ensuring that it
happens. I think it is that important.
Council Chair Kaneshiro: Does anyone have anything to add? Council
Vice Chair Chock.
Councilmember Chock: Sure. I do not know where to start. I will try
to be quick and not duplicate what was said. I spent a lot of my first few years on the
Council trying to understand not only what our role is here as Councilmembers, but
also the process for how budgeting works. I think that thanks to previous Councils, we
spend a lot of time trying to fortify our budget, our reserves, and protect our County
assets to build capacity within what we have to work with. The budget process in itself
is a difficult one from the legislative arm. I think all of you will agree with that. It is
difficult for us to cut. I would challenge anyone here to seek out ways to cut the budget.
We have seen the "Ross Kagawa" approach of trying to cut three million
dollars ($3,000,000) from here and then we see the tedious process that Councilmember
Kuali`i has taken us through of looking at things line-by-line and at each position. It is
very difficult for what we have been able to do. It is even more difficult because we
cannot find cuts in order to move them forward to then advocate for things that we all
agree is a top priority. When the comment about looking at the housing crisis
COUNCIL MEETING 74 AUGUST 3, 2022
holistically was made, absolutely, right? I think the Council, at least in the last four (4)
years has done nothing but look at ways to approach this from many different angles.
As was said earlier by Councilmember Evslin, this is just one (1) piece of the puzzle. It
certainly is not the panacea. In this governmental process, you do not try to bite off the
whole thing at once. Policy is not structured to do all of it at once. To say that we are
not looking at this holistically would be wrong. I think we are all really focused on this.
It comes down to choice and how much we want to prioritize towards a solution. I do
have to commend Councilmember Evslin for his willingness and his ability to push hard
on things that he is passionate about, and follow through with solutions. It takes a lot.
People do not recognize from the outside looking in what it takes to legislate, create
bills, working with the Administration, and work with other Councilmembers to work
on solutions to put on the table for us to consider. In fact, I have not seen anything else
similar to this. We are also limited in our reach as to what we can do. Yes, there is a
solution that the former Director of Finance is offering us. It is a great option, but it is
not on the table right now. I would like to see that move forward if this proposal does
not pass. It is going to take a lot of work. Five (5) different policy options to move
forward on. I would love to see you work on that and get it done. The fact is, I have not
seen it get done. The other fact is it is not as strong. It is not saying that this is a
commitment and we will now take the politics out of it and say this is...the Open Space
Fund has not tanked this government. It has contributed to the viability of this
community. That is what we are trying to do here. I would just say that we had a
chance to use the budget process to achieve what we are all saying here right now was
the right thing to do. Obviously, that did not occur. We decided as a Council not to pass
that. Therefore, we looked at other options based on what was said at that meeting.
On top of that, to fortify that, there were solutions on how to fund this in order for us to
feel confident that there was a means for it to be not impacting our government
budgeting process going forwarding negatively. This is a big one for me to move forward
on. I would typically be more conservative on budgeting. In the past I have and I voted
this same Charter Amendment proposal down. There comes a time when you build as
much as you can in your organization and you take chances to say that this is what we
have to prioritize. For me, at least now, in my career, on this Council, it is now.
Therefore, I will be supporting this. Thank you.
Council Chair Kaneshiro: I will go next.
Councilmember Kuah'i: I thought you like to go last.
Council Chair Kaneshiro: Everyone had their first time. I am hopefully
going to just speak once. I will be voting against this. I want to be very clear, I am not
against affordable housing. I am against poor policy decisions. Attempting to use the
County Charter to circumvent the budget process, to me, is bad budget policy. It strips
budgeting power and flexibility away from the Mayor and the Council in perpetuity,
forever. Our Bond Counsel stated, "While two percent (2%) does not sound like a large
amount, if you put it in the context of the typical annual levy increase, it looks a bit
more significant. It is never good to lose even a small amount of budget flexibility. The
fear is that it becomes a slippery slope where legislators keep peeling away pieces of the
revenue pie." I will go back to the question that I asked originally; what is currently
wrong with our budgeting process? Housing and the Council had numerous
opportunities throughout the budgeting process to jockey for more money. I have
explained the process before and I will explain it again so it is on the record. Prior to
COUNCIL MEETING 75 AUGUST 3, 2022
the original budget, department heads from all departments prepare their budgets and
meet with the Mayor's Budget Team to justify their needs for the year. Upon
submission of the original budget and prior to the submittal of the Supplemental
Budget, the department head or Councilmembers can express their want for more
moneys going to a particular interest or needs. Once the Supplemental Budget is
submitted, Councilmembers can then cut money in the budget and add it to their
particular items or raise taxes and allocate money to their particular interests. That is
the process that we have now and the process that we can follow. If you look at this
Charter Amendment, if this two percent (2%) was in place with our recently passed
budget, it would have allocated approximately three million seven hundred fifty
thousand dollars ($3,750,000)to housing. In this recent budget that we just passed, the
Housing Agency received three million dollars ($3,000,000) to the Revolving Fund, and
five hundred thousand dollars ($500,000) for interest payments on our State of Hawaii
Dwelling Unit Revolving Fund (DURF) loan. The Housing Agency already received
three million five hundred thousand dollars ($3,500,000). If we had this two
percent (2%) earmark in place they would have received three million seven hundred
thousand dollars ($3,700,000). To me, the budget process we have in place is providing
the money that the Housing Agency needs or is asking for. If the Housing Agency
needed or requested more moneys,which I did not hear them request more money either
in their original budget submittal or the Supplemental, if they wanted more money,
they can either talk to the Mayor or the Council has the ability to cut money from the
budget. If there was any time to cut from the budget, it was this time. The County saw
an increase of forty-nine million dollars ($49,000,000) in revenue this year. That is
unheard of. We saw twenty-two million dollars ($22,000,000) in new projects in our
General Fund-CIP. Twenty-two million dollars ($22,000,000) of new moneys in our
General Fund-CIP. Again, surely, if we wanted to get more money to the Housing
Agency, we could have allocated money to them. For me, as a policymaker and
decisionmaker, I have been on the budget for...that was my eighth year. In order for
me to vote for a cut or an add, it depends on two (2) things: the Housing Agency or any
department that comes in, they need to justify their need for more money and they need
to tell us why they need more money. Secondly, any proposal needs to get four (4) other
votes besides your own. If you cannot get four (4) other votes besides your own, then
the proposal is not going to pass. That proposal needs to convince four (4) other
Councilmembers to pass it. In the budget we did not get that. It was probably because
it was combined with a tax increase. If you look at it and really wanted to cut money,
and if Housing, which they did not, said they needed "x" number of dollars, then we
should have cut it from the General Fund-CIP, which had twenty-two million
dollars ($22,000,000) of new projects. I am sure some of those projects could wait until
the next year. For me,it is not about affordable housing. We are putting money towards
affordable housing. That is our job as Councilmembers and as the Mayor. We are
allocated moneys towards affordable housing. I do not want anyone to think that
because we are voting no on this, that the Housing Agency is not getting money. The
Housing Agency received three million five hundred thousand dollars ($3,500,000) in
this last budget. If this Charter Amendment was in place, they would have received
three million seven hundred thousand dollars ($3,700,000). Again, I am for affordable
housing, but I am not for this type of policy. It is a bad policy to use the Charter
Amendment to circumvent our budgeting process. The budget process is the process
that we should use to get moneys where it needs to be. If we cannot get the votes to do
what we want to do, then that is the budget process. Councilmember Cowden.
Councilmember Cowden: I want to state that we are chartered to take
care of our infrastructure. We are not chartered to take care of housing. That is why
the CIP budget tends to go more towards infrastructure, because that is our huleana.
COUNCIL MEETING 76 AUGUST 3, 2022
That is why I think it does not get enough. I do not think three million five hundred
thousand dollars ($3,500,000) was enough. I do not think three million seven hundred
thousand dollars ($3,700,000) was enough. I will own that I have taken a strident
interest in our houseless community. For those who do not know, the Friday before last
was an effort towards a fresh sweep of the very medically fragile group. I have been
trying to figure out where to put them. There is just no place to put them. This is just
vividly real to me when I look at who is struggling. I will say that you are right and you
are right. In theory, we could do what you say, but really what it takes is to work with
the Office of the Mayor beforehand. I sat on that side of the banister for a very long
time and it is very rare that I ever saw anything move much away from whatever the
Mayor submits. It pretty much stays along the lines of what they submit. I just want
people to know, I get that this is a blunt instrument. It is imperfect, but I am willing to
go with it because of how deep the crisis is.
Council Chair Kaneshiro: Councilmember Evslin.
Councilmember Evshn: I know we have said all of this throughout. I
do not want to drag this out too much longer. A couple of things were said which I
wanted to address. I really respect Ken Shimonishi's testimony and I think it is worth
it to try to work towards that as Council Vice Chair Chock said, are partial steps in this
direction. It is not big steps. It does not allow us to get revenue bonds and it does not
ensure or give us the assurance of long-term planning on the Housing Agency's part,
because it is a resolution and the Council or the Office of the Mayor could do whatever
they want at any time. Regarding Ken's expertise, again, I have a ton of respect for
Ken, and he has done amazing things for the County. We have other experts also
submitting testimony. Again, Hawaii Budget and Policy Center, their Housing
Director sent in testimony saying, "Hawai`i Budget and Policy Center is writing in
strong support of Resolution No. 2022-22...setting aside a percentage of real property
taxes towards affordable housing is an increasingly common strategy for cities and
counties across the country." It goes on to list a whole number of other places that are
doing similar things in order to leverage revenue bonds. It is not as if we are trying to
reinvent the wheel or breaking the structure of godly-written Charter or anything like
that. It is all within the bounds here. Council Chair Kaneshiro, you said that part of
the budget process is the need to convince four (4) other Councilmembers to vote for
something. I am just recognizing how hard that can be to do. This is why it is hard to
assure that this type of regular funding will be allocated towards the Housing Agency
in perpetuity. Convincing four (4) other Councilmembers is not always easy. I have
more, but I will not go on. I do genuinely appreciate the dialogue. I know we are all
passionate about housing and the conversation was passionate. We will all keep
working on solutions.
Council Chair Kaneshiro: Councilmember Kuali`i.
Councilmember Kuali`i: I will just say that this for me is one of the most
important votes I am casting this term. I do not take it lightly. I am normally a person
who is very thoughtful and looks at things pretty carefully and try to make decisions
that are practical. I appreciate what we heard from the Director of Finance and from
the former Director of Finance. All of that was very clear to me. It was not "absolutely
do not do this because it is dangerous and horrible." It was not about that. We heard
COUNCIL MEETING 77 AUGUST 3, 2022
about a "slippery slope," and we heard"it would be better i£" We are talking about two
percent (2%). It is such a small portion of our entire budget. Why can we not at least
dedicate two percent (2%) of our budget to one of our top, if not the top, priority? The
affordable housing crisis is what I believe, everyone says, is our top priority. We heard
it from some of the testifiers about the time is now. It is a matter of urgency. Our
families are suffering. Our families are living in overcrowded conditions. People are
moving away. Maybe it may not seem like the same kind of immediate suffering as
someone who is physically injured or living homeless with injuries and suffering in the
dirt, if you will, but it is suffering. We have talked about this for so long. We have had
opportunities and we have not voted to move in that direction. What is wrong with...all
we are doing here is we are saying or admitting that we have failed and now we want
to put it out to the voters to see what they think, so they can have a say. Do the voters
support two percent (2%), a small amount of our budget every year, being committed
and dedicated solely to affordable housing? I am pretty sure that they do. The failure
will happen here and not by the voters. If we vote this down, we are failing the voters.
We are not even giving them a chance to set their priorities with us. We are supposed
to be listening to them. I get the whole thing about needing the flexibility during the
budget and all of that. We have that flexibility with the other ninety-seven and a half
percent (97.5%) of the budget. One-half of one percent (0.5%) goes to the Open Space
Fund. That is in place, like Council Vice Chair Chock said. That has not caused any
problems or difficulties. We value open space. Do we not value affordable housing even
more? Open space is almost like a "nice to have." Truly it is a social benefit and makes
us all feel better. Those of us who cannot afford to go away need to enjoy open space
and recuperate in the beauty of the island, but with affordable housing, people are
suffering. Those that are working on it are suffering. They do not have the health to
really help. This is sad. If we do not have the five (5) votes to get this passed today, it
is really sad. To me, this is simple. This is a principle vote. This is not a numbers, law,
or small this...this is about where do you stand? What do you value? What do you
believe and what have you been talking about for the last two (2) years, ten (10) years,
or twenty (20) years? When you are off of the Council and working out in the
community, what are you going to be working on? What do you care about for our
community? People are having to move away and not be able to come back. We keep
having these hard votes and I do not why they are so hard. It should not be. Thank
you.
Council Chair Kaneshiro: Councilmember DeCosta.
Councilmember DeCosta: I feel like there were some personal attacks on
both what Councilmember Chock said about him wanting to challenge anyone on
cutting the budget, and what Councilmember Kuali`i is saying that it is so simple with
people not having a place to live. You are Housing Committee Chair, am I correct,
Councilmember Kuali`i?
Council Chair Kaneshiro: This is discussion.
Councilmember DeCosta: I know, but he is the Committee Chair for the
Housing Committee. I am the Committee Chair responsible for the Department of
Public Works. Do you know how many times I went into the Acting County Engineer's
office and spoke to him or to his Deputy to ask them what they needed? I have met with
COUNCIL MEETING 78 AUGUST 3, 2022
the Managing Director to try to push things that my departments needed. You both are
probably the longest-serving Councilmembers on this Council, besides Council Chair
Kaneshiro. How many times have you been in the Managing Director's office pushing
for the Housing Agency? If I knew the Housing Agency needed more money, I could
have cut two hundred thousand dollars ($200,000). You know how I would have cut it?
I had three (3) department heads tell me items that I could have cut that did not need
to be cut because no one else needed the moneys. Emotions cannot speak today. The
fact is that the Charter is like our Constitution. It is an organizational piece that guides
us. The voters elect us into office to make the correct decision for them. I heard two (2)
well-oiled mechanisms that could provide money to the Housing Agency. One of them
is us and the other one includes Federal dollars. I do not see anything broken. I know
for two (2)years I have worked on the budget and I made sure that we put three million
five hundred thousand dollars ($3,500,000) and the other year we put two million seven
hundred thousand dollars ($2,700,000)into the Housing Agency. If the Housing Agency
needed more money and if Adam told me that, I would have gone to the Mayor and the
Managing Director to tell them that. Nobody made that apparent. He said he had
enough money. I am not going to stand here and act like I am going to take any
responsibility except for that we need housing for our people and we are here genuinely
going to do this. We are doing it. I see us doing this. All seven (7) of us did it this past
year. Thank you.
Council Chair Kaneshiro: Councilmember Carvalho.
Councilmember Carvalho: I just want to say that the
Structurally-Balanced Budget Policy and the Reserve Fund Policy...those are in place
and I know it can work. It has worked. To shift to the Charter part of it, which could
hamper things down the road should there be disasters, we have the responsibility as
Councilmembers to make the decisions and work with the Administration. I know if
we lay it out the right way and we have parts of the plan in place to enhance, better,
and reach out to bring in funding to make sure we can do affordable housing...again, it
takes time and effort like I said earlier. We have it in place. It is just about making
sure that we have the right resources to move forward. I believe the Charter
Amendment route is not the route to go. This is what we have. We can work with the
Administration to place the funding in and I know it can happen. We have proven that
in so many different ways. I just feel strongly...it is emotional for everybody. I
appreciate all of my fellow Councilmembers. Ken Shimonishi's layout says everything
that we need to do. We can. I know we can. For me, that is a big part of it. I know out
in the community, we want our voters to know what they are responsible for. We are
responsible right now for this. We are responsible for laying out and setting aside the
funding. I know we can do it based upon what I know and what we have before us.
Thank you.
Council Chair Kaneshiro: Does anyone else have final discussion? For
me, I do not think we failed in the budget. I did not hear the Housing Director say that
he did not have enough money this year. He said he had the money that he needed.
That is why no one was working hard to cut items to give him more money. If he
justified it and said that he needed more money to do other projects, he probably would
have gotten money. We probably could have found a cut. We did not even need a tax
increase. It could have been a straight cut, but that is the process. Again, we need that
COUNCIL MEETING 79 AUGUST 3, 2022
back and forth. I am not just going to take taxpayer money and fly it at any department.
Housing, Police, Fire, or any department, they are all important. Public safety is
important, but if they are not going to justify what they need the money for, I have never
in my eight (8) years just thrown money at them. They need to justify their budgets. I
think that is the part that we are missing. We need that justification in order to get
that money passed. That is why I voted the way I did and why I am voting the way I
am now. In this case, I do not think the Charter Amendment is the way to go about
budgeting. Our budget process is the right way to go about budgeting. If you look at it
again, this Charter Amendment is not going to resolve our housing crisis, absolutely
not. If we had this Charter Amendment in place today or when we did the last budget,
it would have brought in three million seven hundred thousand dollars ($3,700,000).
We already allocated three million five hundred thousand dollars ($3,500,000) to the
Housing Agency. It would have only been an extra two hundred thousand
dollars ($200,000). Is that so much better than what we did? I think what we did was
right. We allocated money, we looked through the budget, we line-itemed everything,
we made sure that everyone justified what it was for, and that is the way it should be.
That is why I stick very strongly in saying that our budget process is the process that
we use and I am not in favor of going through the County Charter. It actually makes
us not do our job. It actually does our job for us. It automatically puts money there.
Our job should be, every year, we look at the budget, and we allocate money where we
believe it should be. That is where I think our responsibility as Councilmembers lay,
where the Mayor's responsibility lays, and then we get criticized or applauded by how
we pass that budget. I can tell you during this last budget, I did not hear the Housing
Agency say that they did not have enough money for the projects that they were trying
to do. Council Vice Chair Chock.
Councilmember Chock: I will just state for the record, personally, I did
not support this Resolution to circumvent the budget process. I understand that in
many ways it does circumvent the budget process, but that was not what the intention
is. To me this is not an emotional decision, it is a value-based decision and that is the
only reason why I chose to support it. I also will clarify that we can hear different things
around the table and I can accept that. That is not what I heard from our Housing
Director. I heard based on the questions that we asked that he clearly stated that he
could utilize the funding. I just want to make that statement for the record. That is all.
Councilmember Kuali`i: Council Chair Kaneshiro, I just want to clarify
that I did not say or did not mean to say that our budget process was a failure. All I
was saying was that we are failing when it comes to addressing the housing crisis. The
few units that we do get built is wonderful. That moves us in a positive direction. When
we need thousands of units and we can only build hundreds, we are failing at solving
the housing shortage crisis.
Council Chair Kaneshiro: Does anyone else have anything else to add? If
not, we will take a roll call vote on the Resolution.
COUNCIL MEETING 80 AUGUST 3, 2022
The motion for adoption of Resolution No. 2022-22, as amended to Resolution
No. 2022-22, Draft 1, was then put, and failed by the following vote:
FOR ADOPTION: Chock, Cowden, Evslin, Kuali`i TOTAL— 4,
AGAINST ADOPTION: Carvalho, DeCosta, Kaneshiro TOTAL— 3,
EXCUSED & NOT VOTING: None TOTAL— 0,
RECUSED & NOT VOTING: None TOTAL— 0.
Ms. Fountain-Tanigawa: The motion fails.
Council Chair Kaneshiro: Do we need a motion to receive?
Ms. Fountain-Tanigawa: We could.
Council Chair Kaneshiro: As this is a Resolution, we do have to get a
motion to receive, as the motion to approve failed.
Councilmember Carvalho moved to receive Resolution No. 2022-22, as amended
to Resolution No. 2022-22, Draft 1, seconded by Councilmember DeCosta, and
carried by the following vote:
FOR RECEIPT:Carvalho, Chock, Cowden, DeCosta,
Evslin, Kuali`i, Kaneshiro 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. The motion to receive passes.
Council Chair Kaneshiro: I know that was painful. Let us move on.
Resolution No. 2022-27 — RESOLUTION ESTABLISHING A CROSSWALK
AND BICYCLE LANES ON PO`IPU ROAD, ESTABLISHING PARKING
RESTRICTIONS AND A CROSSWALK AND MODIFYING A SCHOOL ZONE ON
PA`ANAU ROAD, AND REPEALING RESOLUTION NO. 50-95 AND RESOLUTION
NO. 2013-53 IN THEIR ENTIRETY, AND AMENDING ITEM 3, SECTION XV OF
RESOLUTION NO. 54-91, KOLOA DISTRICT, COUNTY OF KAUA`I
Councilmember Kuali`i moved for adoption of Resolution No. 2022-27,
seconded by Councilmember Carvalho.
Council Chair Kaneshiro: We received no written testimony on this
item. Are there any questions from the Members? Councilmember Cowden.
Councilmember Cowden: I have seen it on paper here, but if Michael
Moule could show us exactly what this is. I do not have a lot of questions. I just want
an overview.
Council Chair Kaneshiro: Michael, are you there?
COUNCIL MEETING 81 AUGUST 3, 2022
Councilmember Cowden: Perhaps you have the map that you can put
up on the screen.
There being no objections, the rules were suspended.
MICHAEL MOULE, Chief of Engineering (via remote technology): Good
afternoon. I have a short presentation just to give a little background and mainly
what the Resolution does. It is a little confusing because there are amendments to
older resolutions and repealing some older resolutions. I will just share my screen
here. Can you see that? Real quick, here is some brief background information.
There are three (3) public involvement efforts that have been going on for the
last ten (10) years on the South Side that relate to this. It is the South Kauai
Community Plan that the Planning Department did with a lot of public involvement.
That as you see supports this Resolution. There is the Po`ipu Road Safety Mobility
Project which grew out of a design charrette in 2013, which we will talk about. That
is a bigger project for all of Po`ipu Road that you have seen us apply for a Rebuilding
American Infrastructure with Sustainability and Equity (RAISE) Grant for that and
you all saw that earlier this year. That project is scheduled to be constructed about
two (2) years from now. There is this Koloa Safe Routes to School project, which is a
specific project that we are doing this Resolution to approve the regulatory traffic
control devices related to that project. There has been a lot of efforts surrounding the
school and we will talk about that very briefly here. This is briefly a timeline of the
public involvement with these projects. It started back in May of 2011, the first Walk
to School Day was that day in Koloa. A field visit with school staff and community
members looked at ways to improve walking and biking to the school. For the next
couple of years, the community members and the school developed the Koloa Safe
Routes to School plan. May 2013 was the Po`ipu Road Design Charette which the
larger Po`ipu Road project grew out of. That modified the plan effectively. In
July 2015, the South Kauai Community Plan was adopted with lots of public
involvement prior. In August 2016, we had a public meeting about the Safe Routes
to School K61oa project. In October 2017, we reviewed the conceptual design with the
school. We worked with the Kauai Historic Preservation Review
Commission (KHPRC) in January 2020, and that was specifically for the Safe Routes
to School project. Lastly, we had three (3) meetings about the Po`ipu Road Safety
Mobility Project, which again, supported the elements that are included in this
Resolution. This project is building the beginning of some of the sidewalks, bike
lanes, and other treatments to Po`ipu Road that are planned as a part of the larger
project.
Here are some quick pictures of some of those things that happened. Here is
a picture of Walk to School Day. The kids are approaching the school where they
would be using the areas where the crosswalks are going in and being modified in the
current project. This is a part of the Safe Routes to School plan being developed back
in 2012 and 2013. Item 1 was not included in the project, but items 2, 3, 4, and 5
were all the elements that we are going to go through in detail in this Resolution.
Some of it changed a little bit. We did not extend the sidewalks quite as far as item 4
shows, but that will be done as a part of the future Po`ipu Road project. These are
just some quick images from the Po`ipu Road Design Charrette from May 2013. You
COUNCIL MEETING 82 AUGUST 3, 2022
can see all of the public involvement in that. The walking audit that was a part of
that effort, specifically in the Koloa Town area, this bottom picture is right at Koloa
School. We walked the corridor and identified this project effectively. The image on
the right is from the generation of the South Kauai Community Plan. The image
shows the network of bikeways, sidewalks, and improved intersections in this area.
The image on the left shows the cross section that came out of the South Kauai
Community Plan for the section of Po`ipu Road that fronts Koloa School. We are
implementing most of this with this project. It will be continued by the Po`ipu Road
project in a couple of years. This is an image from the stakeholder meetings for the
Po`ipu Road project in December of 2019 and January of 2020.
Now I will quickly go through the components of the Resolution. There are
five (5) sections. The first section deals with bicycle lanes. These are screen captures
from the exhibits that you should have in your Resolution. This shows bike lanes
being striped from Koloa Road to a little bit past Pa`anau Road, from the northern
most portion of Po`ipu Road. In this Resolution, the plan is to extend those bike lanes
as part of the future project. This project is building the bike lanes, generally
speaking, in the area of this map. The school itself is here on the bottom. The bike
lanes will be striped in this area, roughly from the school back up to Koloa Road.
One crosswalk on Po`ipu Road is being relocated in order to provide better
pedestrian accessibility across the street. We are also adding a sidewalk on the other
side of the road. This crosswalk would be better served than the existing crosswalk
that is located here. This location will remain in place and we are modifying the
flashing beacons that are at those crosswalks to improve them from what they are
currently.
On Pa`anau Road, there is an older crosswalk located over here. The school is
here. I did not label it, but to the bottom-left of the photo or this image is Pa`anau
Village housing or apartments. Right now the crosswalk is away from those areas.
This crosswalk will now be located near the gate coming out of the school here so the
kids can cross the street and go either way on Pa`anau Road, either to Kahikina Road
to walk to houses down here or walk to the west here in this case to Pa`anau Village.
The parking zones are being changed accordingly. Since the crosswalk is
moving, we need to move the little parking zones. We have repealed an older
resolution that established the crosswalk and the parking zones on Pa`anau Road and
replacing it with this Resolution making it clear that there is no parking along the
north side of Pa`anau Road, because that is where the sidewalk. Any parking there
would block the travel lane. There really was not that much parking on that side of
Pa`anau Road. There is parking allowed further to the west of this area, however.
The parking zones on the south side are being modified slightly to accommodate the
new crosswalk so as to not allow parking near the crosswalk for safety purposes.
Section 4, because we have the room for it here, we decided we could reduce
congestion a little bit during school arrival and dismissal tinres by putting in very
short left- and right-hand turn lanes here. You can get two (2) cars in this left-turn
lane and on the right cars can get by. People are currently using it like that now. We
COUNCIL MEETING 83 AUGUST 3, 2022
are moving this centerline over a bit to make it better for this tight space. This should
reduce congestion during those school arrival and dismissal times.
Section 5, we are changing the school zone. For some reason, the school zone,
which is the hatched area of Pa`anau Road, did not extend as far west as it should
have. We are extending it further west. It goes from five hundred seventy (570) feet
to eight hundred (800) feet from Po`ipu Road to all the way a little further down the
road here. To be clear, there is also a school zone along Po`ipu Road. We are not
changing that one so it does not show up in this Resolution. There is also a school
zone posted at fifteen miles per hour (15 mph) on Po`ipu Road as well. That is all that
I have to present. I can blow up this image or the actual Resolution exhibits. This
shows the same thing. They are just screen captures from that just in case you have
any questions on that. To summarize, the two (2) resolutions being repealed are
effectively being superseded by this and we are modifying a resolution related to the
school zone as I mentioned.
Council Chair Kaneshiro: You do not need to share your screen. We
have the information in front of us. Are there any further questions from the
Members? Councilmember Cowden.
Councilmember Cowden: I just wanted to say thank you for the diligent
work. This is the level of detail and accountability that I normally think of with our
Engineering Division. Thank you.
Mr. Moule: You are welcome.
Council Chair Kaneshiro: Are there any other questions from the
Members? If not, while the rules are still suspended, is there anyone in the audience
or on Zoom wishing to testify? None.
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
Council Chair Kaneshiro: Is there any final discussion from the
Members? If not, could I get a roll call vote?
The motion for adoption of Resolution No. 2022-27 was then put, and carried by
the following vote:
FOR ADOPTION: Carvalho, Chock, Cowden, DeCosta,
Evslin, Kuali`i, Kaneshiro TOTAL— 7,
AGAINST ADOPTION: None TOTAL— 0,
EXCUSED & NOT VOTING: None TOTAL— 0,
RECUSED & NOT VOTING: None TOTAL— 0.
Ms. Fountain-Tanigawa: Seven (7) ayes.
COUNCIL MEETING 84 AUGUST 3, 2022
Resolution No. 2022-28 — RESOLUTION CONFIRMING COUNCIL
REAPPOINTMENT TO THE PUBLIC ACCESS, OPEN SPACE, NATURAL
RESOURCES PRESERVATION FUND COMMISSION (Jonathan Thomas Lucas —
Koloa/Po`ipu/Kalaheo))
Councilmember Kuali`i moved for adoption of Resolution No. 2022-28,
seconded by Councilmember Carvalho.
Council Chair Kaneshiro: We received no written testimony for this
item. Are there any questions from the Members? If not, is there anyone in the
audience or on Zoom wishing to testify? None.
There being no one present to provide testimony, the meeting proceeded as
follows:
Council Chair Kaneshiro: Is there any final discussion from the
Members? If not, could I get a roll call vote?
The motion for adoption of Resolution No. 2022-28 was then put, and carried by
the following vote:
FOR ADOPTION: Carvalho, Chock, Cowden, DeCosta,
Evslin, Kuali`i, Kaneshiro TOTAL— 7,
AGAINST ADOPTION: None TOTAL— 0,
EXCUSED & NOT VOTING: None TOTAL— 0,
RECUSED & NOT VOTING: None TOTAL— 0.
Ms. Fountain-Tanigawa: Seven (7) ayes.
Council Chair Kaneshiro: Next up we have Bills for First Reading.
BILLS FOR FIRST READING:
Proposed Draft Bill (No. 2878) — A BILL FOR AN ORDINANCE AMENDING
CHAPTER 8, KAUA`I COUNTY CODE 1987, AS AMENDED, RELATING TO
ADDITIONAL RENTAL UNITS (County of Kauai Planning Department, Applicant)
ZA-2022-8)
Councilmember Kuali`i moved for passage of Proposed Draft Bill (No. 2878) on
first reading, that it be ordered to print, that a public hearing thereon be
scheduled for September 7, 2022, and that it be referred to the Planning
Committee, seconded by Councilmember Carvalho.
Council Chair Kaneshiro: We received no written testimony on this
item. Ka`aina, could you give us a brief description of this item?
There being no objections, the rules were suspended.
COUNCIL MEETING 85 AUGUST 3, 2022
KA`AINA S. HULL, Planning Director (via remote technology): It has been a
long day. Thank you. The Bill that you have is virtually identical to one you received
a few months ago, concerning taking away the requirement that an Additional
Dwelling Unit (ADU) be able to have direct access to a County standard roadway.
That requirement for ADUs was essentially scrubbed from the ADU section of the
Comprehensive Zoning Ordinance (CZO) and we recognized during the processing of
that, that the exact same requirement was in play for Additional Rental
Units (ARUs). While this requirement has been in place for ADUs for some
thirty (30) years now, it really has served no purpose except for adding an additional
month or two (2) to the permitting process. It ultimately was a way back in the 1980s
that the County thought it could get substandard roads upgraded through the
entitlement process for ADUs. When it costs anywhere between three hundred
thousand dollars ($300,000) to one million dollars ($1,000,000)to upgrade to a County
standard roadway in conjunction with an ADU application, no landowner is going to
upgrade the road because of the proportional nexus between the cost of the two (2)
elements. This is not necessarily a panacea or really going to put more affordable
housing or even housing units in our inventory. We submitted an array of different
bills that helped somewhat facilitate and provide for more density for housing units
in and around our urban areas. This Bill is just clearing one of the barriers that we
found, that is actually time restrictive for ARUs and ADUs. It is identical to the
proposal that you reviewed a few months ago concerning ADUs. This is just the one
for ARUs that really should have gone in tandem, but got lost in the mix or shuffle of
the array of bills that have been drafted for the CZO. I am open to any questions.
Council Chair Kaneshiro: Are there any questions from the Members?
If not, while the rules are still suspended, is there anyone in the audience or on Zoom
wishing to testify? None.
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
Council Chair Kaneshiro: Is there any final discussion from the
Members? Councilmember Cowden.
Councilmember Cowden: I am supporting this, but I am also conscious
every time I drive through a really crowded neighborhood where my little Honda Fit
struggles. I know I am exaggerating a little bit honestly. I am sure glad I do not have
a bigger car, because I am straddling the yellow line. We have to be careful how much
we crowd neighborhoods. That is my final discussion.
Council Chair Kaneshiro: Does anyone else have final discussion? If
not, I will take a roll call vote.
The motion for passage of Proposed Draft Bill (No. 2878) on first reading, that
it be ordered to print, that a public hearing thereon be scheduled for
September 7, 2022, and that it be referred to the Planning Committee was then
put, and carried by the following vote:
COUNCIL MEETING 86 AUGUST 3, 2022
FOR PASSAGE: Carvalho, Chock, Cowden, DeCosta,
Evslin, Kuali`i, Kaneshiro 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.
Proposed Draft Bill (No. 2879) —A BILL FOR AN ORDINANCE AMENDING
CHAPTER 8, ARTICLE 12, KAUA`I COUNTY CODE 1987, AS AMENDED,
RELATING TO CONSTRAINT DISTRICT(S) (County of Kauai Planning
Department, Applicant) (ZA-2022-12)
Councilmember Kuali`i moved for passage of Proposed Draft Bill (No. 2879) on
first reading, that it be ordered to print, that a public hearing thereon be
scheduled for September 7, 2022, and that it be referred to the Planning
Committee, seconded by Councilmember Carvalho.
Council Chair Kaneshiro: We received no written testimony on this
item. Ka`aina, could you give us a brief description of this Bill. I know it is kind of
long.
There being no objections, the rules were suspended.
Mr. Hull: Thank you again, Council Chair and Members
of the Council. I will try to be as brief as possible. We will be giving a more in-depth
presentation at Committee should you refer it to Committee. Essentially, this Bill is
a collaborative effort that has gone on for the past two (2) years to look at a regulatory
framework dealing with climate change-induced sea level rise. For about four (4)
years now, the State of Hawaii, originally .through the State of Hawaii Climate
Change and Adaptation Commission, but also ultimately adopted by the State
Legislature, has a series of maps that are able to spatially assess what three and two
tenths (3.2) of a foot of sea level rise is going to have an effect on our coastlines within
this century. It is standardly accepted that three and two tenths (3.2) of a foot of sea
level rise will happen within this century. More than likely that will happen sooner
than the end of the century, but definitely within the century. With that spatial
mapping that occurred at the State level, there were essentially three (3) hazards
that were particularly looked at being induced by the sea level rise. One of them is
coastal erosion. That hazard is the scariest hazard. Coastal erosion and sea level
rise means where our shorelines will be and what parts of our island will be
underwater in perpetuity with sea level rise. In looking at those hazards, I will not
say all of them, but the vast majority of them are already addressed quite honestly
through Kaua`i's existing and relatively robust and progressive Shoreline Setback
Ordinance. The Shoreline Setback Ordinance that we have on our island pushes the
built environment out of most of the areas that are projected to be underwater in
perpetuity due to sea level rise. Understanding that, we began, on Kauai at least,
picking apart the other two (2) hazards that are projected to occur with sea level rise.
Those are passive flooding, the ocean rising, and high tides being higher, and highway
annual coastal runup, or waves that occur annually at a higher rate than the rest of
COUNCIL MEETING 87 AUGUST 3, 2022
the wave activity. That is expected to flood our built environment. Looking at those
two (2) coastal flooding hazards that will occur due to sea level rise, we began
essentially working with the scientists to establish what the depths of those waters
will be. Those waters, unlike coastal erosion, are waters that are temporal in nature.
They come in and then they go out. While individuals should not necessarily be
building there, if they are going to be building there, we have looked at that data to
see if there is a way they could mitigate, adapt, or manage the flow of that water
when it occurs. We spent about two (2) years looking at different models, regulatory
frameworks, and different approaches. What we ultimately finalized and worked
with the Planning Commission on was this Proposed Draft Bill. In a nutshell it is
very simple. Taking the sea level rise flood elevations projected to occur with three
and two tenths (3.2) of a foot of sea level rise for this coastal flooding activities, the
habitable structure needs to be elevated at least two (2) feet above the sea level rise
flood elevation and non-inhabitable structures need to be elevated at least one (1) foot
above the sea level rise flood elevation. That is it in a nutshell. This is for new
structures, as well as any structures that exist within these zones that are looking at
being essentially rebuilt, or repaired beyond the fifty percent (50%) of assessed value
of the structure. This is outside of the base flood elevation as managed through the
Flood Insurance Rate Maps (FIRM) in our Flood Ordinance Program. The Flood
Ordinance Program looks at historic flooding activities and requires elevation above
that. It does not account for changing climates and sea level rise, and induced
flooding in areas that did not historically flood. This is a Bill that is somewhat at the
forefront of looking at sea level rise adaptation. The only municipality that we are
aware of that has taken a stab at this is Boston, and that is primarily for larger
structures and developments above two hundred (200) to three hundred (300)
dwelling units. This is really the first one that we are aware of that really approaches
it from a full community-based individual property level. That is why it took us some
time to draft it. We were working with individuals and consultants from around the
nation and got really into the nitty gritty working with land use attorneys, coastal
engineers, and coastal scientists, including but not limited to Dr. Chip Fletcher and
his team. A lot of hands have gone into this. We feel that it is appropriate in its
approach and the data that it has. I am kind of rambling at this point, so I will cut
myself off and hopefully we can get some additional work done in Committee.
Council Chair Kaneshiro: Okay, thank you. Councilmember Evslin,
then Councilmember Cowden.
Councilmember Evslin: Thank you, Ka`aina. I am impressed with all
of the work here. I understand that you are deleting the entire Constraint District
then creating a new Sea Level Rise Constraint District. On the maps that are
provided in our binder, the maps are titled "County of Kauai Sea Level Rise
Constraint District Map 34" and then there is a purple line on these maps that shows
Shoreline Constraint District boundaries. The purple line is the existing Constraint
District, which would be repealed with this Bill, right?
Mr. Hull: No. The County of Kauai Zoning Ordinance
has an array of different Constraint Districts. It has a Slope Constraint District, a
Shore Constraint District, a Watershed Constraint District, et cetera. This one is just
looking at the Shore Constraint District that was adopted back in the 1980s. It was
COUNCIL MEETING 88 AUGUST 3, 2022
well-intentioned at the time and helped to have further regulatory oversight for the
shore areas of Kauai, but after that Constraint District was adopted, the Special
Management Area (SMA) District was adopted, which is much more robust and much
more thorough in its shoreline impact, analysis, and permitting. The Constraint
Shore District as it exists today is antiquated and not really in effect, because it is
trumped by the SMA rules. We took this antiquated Constraint District that still
exists today, and we are essentially gutting the language and turning this Shore
Constraint District into the Constraint Sea Level Rise District. The maps that you
have are proposing the new Sea Level Rise District lines that this new Constraint
District would overlay. Sorry, we did attach it as specific maps of the entire proposed
district area, and that was just to make sure that if there was anyone in the public
assessing or reading it, they may want to have the physical copies. Clicking on the
Kauai Sea Level Rise District viewer, which is online on our website, is a much more
interactive and accurate way to see it. I am not prepared to present that today, but
we will definitely present that in Committee.
Councilmember Evslin: I understood that much from the Bill. Just to
clarify, the maps that are provided though, that purple line showing the Shoreline
Constraint District boundary, if this Bill passes, that purple line will essentially
become meaningless and the important part of the map is the depth elevations?
Mr. Hull: Correct.
Councilmember Evslin: Online presumably...if someone is building
out a piece of property and they are trying to determine where exactly to build, that
online step is surveyable on the ground and they can know exactly where those depth
elevations are and potentially move out of them if they want?
Mr. Hull: Yes. They would be able to grab the map. You
can go on a layer and I think it is down to one (1) inch is equal to a twenty-foot level,
which is a very granular level that surveyors can use. We are not ready to unveil it
yet, but I am fairly certain we should have it ready by the time we get this to
Committee, in which a property can actually enter their tax map key (TMK) and it
will just automatically spit out a portable document format (PDF) that file a
draftsman or architect could upload into AutoCAD and lay their structure directly
over it. We are very close to putting our final touches on it. We do not think it is
necessary to adopt the Bill. The viewer can be utilized in a similar fashion. It is a
much more user-friendly standpoint in being to kick these things out via a TMK
entry, we are pretty close.
Councilmember Evslin: That is amazing.
Mr. Hull: Our Geographic Information System (GIS)
tech savant went on vacation for a couple of weeks. He will be back in a couple of
weeks.
Councilmember Evslin: It sounds like a heroic amount of work went
into this. The other questions were about the two (2) feet and one (1) foot for
non-residential structures. Where did those two (2) figures come from?
COUNCIL MEETING 89 AUGUST 3, 2022
Mr. Hull: That was modeled directly off of the Boston
ordinance. Boston has those particular elevation heights above their sea level rise
flood elevation, so we just mimicked that approach. We took a much more granular
approach in that they only apply to very large proposals. Our position being that we
have this data, we are aware it is going to flood, and how do we continue to sit on this
data and permit structures below the sea level rise flood elevation.
Councilmember Evslin: What is the rationale between the residential
and non-residential? Why do they get to go a little lower?
Mr. Hull: Within the overall flood framework that even
FEMA has, that is a pretty standard approach about having it a little more restrictive
to residentials due to the fact that after the flood occurs, this is still somebody's home
and place of residence. When the waters goes through a commercial area and even
somewhat applicable to resort units, they do not have the same flood standards
because after the flood waters go through it, if it is below that elevation...I will not
say it is not bad, but it is not as bad. The people do not need to live in these things
once the flood water recede. That is my basic understanding of it. I can double-check
a little more with our Floodplain Manager and other folks as well.
Councilmember Evshn: Okay, thank you.
Council Chair Kaneshiro: Councilmember Cowden.
Councilmember Cowden: I did just pull up the map on my phone. The
application is pretty good and how you can move it around. I was looking at Waimea
where it is always flooding. Apparently you did not put the broken gates on this
thing, because we are not seeing a water problem in that area. This is good, that is
what I am saying. I am kind of being playful, but not really. There are some spots
that are not accurate. Does this have what is called an overlay? If somebody is
needing to fix their house, is this like an overlay the same way that Form-Based Code
is? When they are wanting to add a bathroom, they would have to take the same kind
of action that they would with Form-Based Code with an overlay? Is it an overlay?
Mr. Hull: It is indeed an overlay much in the same way
that Form-Based Code is. This specific trigger is for permitting and meeting those
elevation requirements where you have to elevate a structure is for a brand new
structure or if it is a substantial repair to an existing structure that puts it into the
level of rebuild and not repair. That is where you are doing more than fifty
percent (50%) of the assessed value in repairs. The elevation requirement would then
be in play.
Councilmember Cowden: Okay.
Mr. Hull: In your example with redoing a bathroom, in
the vast majority of situations if they are redoing the bathroom, it would not account
for repairing more than fifty percent (50%) of the assessed value of the structure, and
therefore it would be permissible without having to drastically elevate the structure,
unless it is some major, luxurious type of bathroom renovation.
COUNCIL MEETING 90 AUGUST 3, 2022
Councilmember Cowden: What has our outreach been or what will it be
so people become aware of this? How are we going to help the public learn about this?
I appreciate there are a few people in the room. How do we really get this out there
for people to understand it?
Mr. Hull: Right now, it has been through public
hearings quite honestly. We did outreach to the Board of Realtors so that they are
aware and could notify any of their clients that may live or operate in those areas.
This is not a property rights taking issue. When the Planning Department, during
the West Kauai Community Plan, looked at proposing the somewhat coastal hazard
areas where we would reduce their zoning and dropping their density from ten (10)
dwelling units to one (1), that is all they would be allowed to do, for those situations
we did notify the property owners because there was a reduction of development
rights. In this situation we are not reducing any development rights. We are just
saying that what you are proposing in the future, all it needs to be is elevated a
certain amount to accommodate the flow of water. We were not individually notifying
each property owner.
Councilmember Cowden: Okay. Just to be clear, who is going to be
running into this? It is the person who is building a new structure. When they go in
and have a design plan, they will be told that they need to raise it two (2) feet higher
or hopefully whoever does the architecture already knows that or whoever is their
planner for building their property. They will hopefully know that as they would
normally for floodplain issues. It is just that the floodplain is higher.
Mr. Hull: Correct. To that point, we have been in
discussions that should the Council feel it appropriate to adopt the Bill, having a
disclaimer not just on our permitting side, but in the flood program, that while you
are subject to these flood elevations, you also need to check to ensure that you are
building to the appropriate sea level rise flood elevation is a good approach of putting
everyone on notice.
Councilmember Cowden: Okay.
Council Chair Kaneshiro: Council Vice Chair Chock.
Councilmember Chock: Correct me if I am wrong, but the Constraint
Districts move also inland, so it is not just shoreline that is reflected on the maps.
My question is really around, while it might be antiquated, what is the effect of this
replacement with the shoreline focus on Constraint Districts that for example cover
culturally significant areas that were identified within the previous maps.
Mr. Hull: Yes, hold on one (1) second. I want to pull up
something. When we actually originally proposed this Bill, we looked at amending
or essentially erasing two (2) different Constraint Districts. One of them being the
Shore Constraint District, which you have before you, but the other one was the Flood
Constraint District. The logic behind that was that there are SMA rules and
regulations and the Flood Ordinance Program, which are much more robust, have a
larger regulatory regime, and a much more thorough regulatory regime than the
COUNCIL MEETING 91 AUGUST 3, 2022
previously adopted zoning Flood and Shore Districts. Our Planner who is assigned
to really go through the weeds on this ultimately came...and she will be giving a
presentation at Committee if you send it there...she ultimately came to me and told
me that the Shore District is completely antiquated to the SMA. There are no
jurisdictional issues with the Shore District in our Zoning Ordinance that are not
already covered under the SMA rules. She also brought up the point that while there
is a Flood District and while we have a Flood Ordinance, there are water and marine
issues that are a part of the goal and purpose of the Flood District that are not
actually covered by the Flood Ordinance and therefore may not be appropriate to
actually fully erase the Flood District. It was with that we just focused this on the
Shore District and move on. The Flood District will actually still be in play as an
existing Constraint District should this be adopted, as well as the other existing
Constraint Districts, including but not limited to the Slope District, Soil District,
Tsunami District, et cetera. Most of those, including the Tsunami District, are
covered by the SMA and Shoreline Setback rules and regulations, and the Slope
District for the most part, are still covered much more by the engineering standards
that we have today to building on slopes. Long story short, we are not focusing on
any of the other Constraint Districts. They will still exist and have their regulatory
framework.
Councilmember Chock: Okay, thank you.
Council Chair Kaneshiro: Are there any other questions for Ka`aina?
This is just First Reading, so I am sure we will get a more in-depth presentation at
Committee. If not, while the rules are still suspended, is there anyone in the audience
or on Zoom wishing to testify?
There being no one present to provide testimony, the meeting was called back
to order, and proceeded as follows:
Council Chair Kaneshiro: Is there final discussion from the Members?
Councilmember Evslin did you have a question?
Councilmember Evslin: I had a question, but I will save it for
Committee.
Council Chair Kaneshiro: Thank you. Councilmember Cowden.
Councilmember Cowden: I just want to acknowledge that this is a lot of
work for them to do this. It is rather creative. I really like...for those out there who
might be watching on television, Google "Kaua`i Shoreline Sea Level Rise Constraint
District." It is almost like a Google Map. You can find your house and find out what
the challenge might be. It is really well done.
Council Chair Kaneshiro: Does anyone else have final discussion?
Councilmember DeCosta.
Councilmember DeCosta: Thank you, Ka`aina. I have seen two (2)
homes in Kekaha that are set way back from the beach compared to the older and
existing homes that are set near the sandy coastline out there before Davidson's
Beach. I guess it is part of this new sea level rise setback. I notice that our
contractors and homeowners are following the Code. That is great.
COUNCIL MEETING 92 AUGUST 3, 2022
Council Chair Kaneshiro: Councilmember Evslin.
Councilmember Evslin: I want to express my appreciation to the
Planning Department for doing this and being so proactive on this and other
ordinances, including the Shoreline Setback Ordinance and the West Kauai
Community Plan. I remember being in a meeting with Dr. Chip Fletcher and asking
him what the number one policy he would push for if he could do anything to help
prepare for sea level rise. He said he would mandate freeboard for new construction.
I remember then that there were so many difficulties in trying to do that. One of
them is ensuring that we could get the data granular enough and you have
meticulously worked through this. Just looking at your online sea level rise viewer
here, you have done really well. Kudos to the Planning Department and I am looking
forwarding to hearing more in Committee.
Council Chair Kaneshiro: Okay, we will take a roll call vote.
The motion for passage of Proposed Draft Bill (No. 2879) on first reading, that
it be ordered to print, that a public hearing thereon be scheduled for
September 7, 2022, and that it be referred to the Planning Committee was then
put, and carried by the following vote:
FOR PASSAGE: Carvalho, Chock, Cowden, DeCosta,
Evslin, Kuali`i, Kaneshiro 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.
BILLS FOR SECOND READING:
Bill No. 2828 — A BILL FOR AN ORDINANCE AMENDING CHAPTER 5A,
KAUA`I COUNTY CODE 1987, AS AMENDED, ESTABLISHING A COMMERCIAL
VEHICULAR RENTAL REAL PROPERTY TAX CLASS
Councilmember Cowden moved to receive Bill No. 2828 for the record on second
and final reading, seconded by Councilmember Kuali`i.
Council Chair Kaneshiro: We received no written testimony on this
item. Are there any questions on this item? I believe we had a lot of discussion at
Committee. Is there anyone in the audience or on Zoom wishing to testify on this
item? Lonnie.
Councilmember Cowden: For what it is worth, receive for the record
means we are not passing it and it is over. This Bill is done.
There being no objections, the rules were suspended to take public testimony.
Mr. Sykos: Thank you very much. It is done. Good job.
COUNCIL MEETING 93 AUGUST 3, 2022
Council Chair Kaneshiro: Is there anyone else in the audience or on
Zoom wishing to testify? None.
There being no further testimony, the meeting was called back to order, and
proceeded as follows:
Council Chair Kaneshiro: Is there any final discussion from the
Members? If not, we will take a roll call vote.
The motion to receive Bill No. 2828 for the record on second and final reading
was then put, and carried by the following vote:
FOR RECEIPT:Carvalho, Chock, Cowden, DeCosta,
Evslin, Kuali`i, Kaneshiro 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.
Bill No. 2869 — A BILL FOR AN ORDINANCE AMENDING CHAPTER 23,
SECTION 23-3.7, KAUA`I COUNTY CODE 1987, AS AMENDED, RELATING TO
CONCESSIONAIRES AT THE SPOUTING HORN
Councilmember Kuali`i moved to approve Bill No. 2869 on second and final
reading, and that it be transmitted to the Mayor for his approval, seconded by
Councilmember Carvalho.
Council Chair Kaneshiro: We received no written testimony on this
item. Are there any questions from the Members? Is there anyone in the audience
or on Zoom wishing to testify?
There being no one present to provide testimony, the meeting proceeded as
follows:
Council Chair Kaneshiro: Any final discussion from the Members? If
not, roll call vote.
The motion to approve Bill No. 2869 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: Carvalho, Chock, Cowden, DeCosta,
Evslin, Kuali`i, Kaneshiro TOTAL— 7,
AGAINST APPROVAL: None TOTAL — 0,
EXCUSED & NOT VOTING: None TOTAL — 0,
RECUSED & NOT VOTING: None TOTAL— 0.
Ms. Fountain-Tanigawa: Seven (7) ayes.
COUNCIL MEETING 94 AUGUST 3, 2022
Bill No. 2870 — A BILL FOR AN ORDINANCE AMENDING CHAPTER 23,
ARTICLE 3, KAUA`I COUNTY CODE 1987, AS AMENDED, RELATING TO
PEDDLERS AND CONCESSIONAIRES
Councilmember Kuali`i moved to approve Bill No. 2870 on second and final
reading, and that it be transmitted to the Mayor for his approval, seconded by
Councilmember Carvalho.
Council Chair Kaneshiro: We received no written testimony on this
item. Are there any questions from the Members? Is there anyone in the audience
or on Zoom wishing to testify?
There being no one present to provide testimony, the meeting proceeded as
follows:
Council Chair Kaneshiro: Any final discussion from the Members? If
not, roll call vote.
The motion to approve Bill No. 2870 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: Carvalho, Chock, Cowden, DeCosta,
Evslin, Kuali`% Kaneshiro TOTAL — 7,
AGAINST APPROVAL: None TOTAL — 0,
EXCUSED & NOT VOTING: None TOTAL — 0,
RECUSED & NOT VOTING: None TOTAL — 0.
Ms. Fountain-Tanigawa: Seven (7) ayes.
Council Chair Kaneshiro: Could you please read us into Executive
Session?
EXECUTIVE SESSION:
ES-1079 Pursuant to Hawaii Revised Statutes (HRS) Sections 92-4 and
92-5(a)(4), and Kauai County Charter Section 3.07(E), on behalf of the Council, the
Office of the County Attorney requests an Executive Session with the Council to
provide the Council with a briefing, discussion, and consultation regarding the
Quarterly Report on Pending and Denied Claims. This briefing and consultation
involve the consideration of the powers, duties, privileges, immunities, and/or
liabilities of the Council and the County as they relate to this agenda item.
Councilmember Kuali`i moved to convene in Executive Session for ES-1079,
seconded by Councilmember DeCosta.
Council Chair Kaneshiro: Does anyone have any questions? Is there
anyone in the audience or on Zoom wishing to testify? None.
COUNCIL MEETING 95 AUGUST 3, 2022
There being no one present to provide testimony, the meeting proceeded as
follows:
The motion to convene in Executive Session for ES-1079 was then put, and
carried by the following vote:
FOR EXECUTIVE SESSION: Carvalho, Chock, Cowden, DeCosta,
Evslin, Kuali`i, Kaneshiro TOTAL — 7,
AGAINST EXECUTIVE SESSION: None TOTAL— 0,
EXCUSED & NOT VOTING: None TOTAL — 0,
RECUSED & NOT VOTING: None TOTAL— 0.
Council Chair Kaneshiro: The motion is carried. That concludes the
business on our agenda. Not seeing or hearing any objections, this Council Meeting
is now adjourned.
ADJOURNMENT.
There being no further business, the Council Meeting adjourned at 3:28 p.m.
Respectfully submitted,
Q
JADE OUNTAIN-TANIGAWA
County Clerk
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