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HomeMy WebLinkAbout05/18/2011 Regular Council MeetingCOUNCIL MEETING May 18, 2011 The Council Meeting of the Council of the County of Kauai was called to order by Council Chair Jay Furfaro at the Council Chambers, 3371 -A Wilcox Road, Li1hu`e, Kauai, on Wednesday, May 18, 2011 at 9:41 a.m., after which the following members answered the call of the roll: Honorable Tim Bynum Honorable Dickie Chang Honorable KipuKai Kuali`i Honorable Nadine K. Nakamura Honorable JoAnn A. Yukimura Honorable Jay Furfaro, Council Chair EXCUSED: Honorable Mel Rapozo PETER A. NAKAMURA, County Clerk: Six present, Mr. Chair. Council Chair Furfaro: Thank you very much and on that note, Mr. Clerk, we have the Lieutenant Governor with us today specifically to talk with us regarding the upcoming APEC Conference. So let's clean up the first page of our agenda on any minutes approvals and go right to his item, if we can. MINUTES of the following meetings of the Council: Council Meeting of April 20, 2011 Public Hearing of May 4, 2011 re: Bills Nos. 2404, 2405 and 2406 Mr. Chang moved for approval of the minutes as circulated, seconded by Ms. Yukimura, and unanimously carried. COMMUNICATIONS: Mr. Nakamura: Mr. Chair, we're on page 2 of the council's agenda on Communication C 2011 -148. C 2011- 148 Communication (04/26/2011) from the Director of the Office of Economic Development, requesting agenda time for Lieutenant Governor Brian Schatz to do a presentation on the Asia - Pacific Economic Cooperation (APEC) USA 2011 Convention being held on Oahu from November 7 — 13, and to also provide information on other initiatives and activities taking place during this event. Council Chair Furfaro: Thank you very much. Lieutenant Governor, Councilmember Nakamura would like to greet you on behalf of the county and Kauai Council. We're delighted that you're here with us. Thank you, councilwoman. And Lieutenant Governor, again, I want to thank you for all your help in the recent legislature, but I'm going to suspend the rules so you can give us a little bit of an overview of the APEC Conference. But again, thank you for all your help in this last legislative session. There being no objection, the rules were suspended. COUNCIL MEETING - 2 - May 18, 2011 BRIAN SCHATZ, Lieutenant Governor: Thank you very much, Chair Furfaro, Vice Chair Yukimura, Members of the Council. It's good to see you all. Congratulations to your newest Councilmember Kuali`i. It's nice to see you here. I think you're going to be a welcome addition to the council. The community is excited about you. The people on Oahu are excited about you. So, thank you to the Kauai County Council for this opportunity to talk about the Asia Pacific Economic Cooperation meeting in the State of Hawaii. We do have a PowerPoint, so feel free to... Mr. Chang: Lieutenant Governor, excuse me, you have to state your name for the record, sorry. Lt. Gov. Schatz: That's okay, for the record my name is Brian Schatz. Thank you very much. So what is APEC? APEC was established at a ministerial level in 1989 to foster economic growth and prosperity. The United States under President Clinton hosted the first leaders' meeting in 1993 and the focus is on trade and investment, business facilitation, and economic and technical cooperation. The secretary for APEC is in Singapore. There is a robust network of committees and working groups that include education, energy, finance, fisheries, health, life sciences, oceans, telecommunications, and transportation. And there are regular meetings of the ministers. The APEC members, and this is really interesting to me, they are the ones you would expect like China, Hong Kong, Indonesia, Japan, Korea, Malaysia, but also Mexico, Peru, Chinese Taipei, Papua New Guinea, Brunei, and of course the United States and Canada. And so it's important to remember that this is not just a group of Asian economies, but rather it really is Asia Pacific in nature. Twenty -one economies participate every year. The leaders' summits have been all across the planet. Each economy has their shot at hosting an APEC every 21 years. President Obama selected Honolulu as the location. The city is the official location and one of the things that Governor Abercrombie and I have made sure of and that's why I'm here on Kauai to talk about APEC is that even though Honolulu is the host city, and they do select a city rather than a state, and this is a United States government meeting, not a state government meeting, we want to make sure that this opportunity does not pass us by without exposing the APEC economies, the 20,000 people that are going to be here, the ministerial leaders, the CEOs, to the Hawaiian Islands and especially to Kauai. The 21 APEC economies represent 43% of global trade, 60% of U.S. exports, 55% of global gross domestic product. There's been 7% annual growth since '89 versus 5% in non -APEC countries. And so this all confirms through data what we already know, which is from an economic perspective Asia is really where the growth is going to occur and of course 40% of the world's populations. In 2009 out of two million international visitors to Hawaii, 88% of them came from the APEC economies. The movement of people within this region is a critical part of Hawai`i's tourism industry. The timeline for APEC USA actually started last year with the senior officials' meeting in Honolulu in December. And then what they have is a bunch of ministerial and other meetings that culminate in what they call leaders' week in Honolulu. So there will be a senior officials' meeting in San Francisco in September and then this slide shows that APEC is APEC, but there are actually subsets. So there are two days for the heads of state to meet. There are three days for what they call the CEO Summit, which will have at least 1500 and perhaps up to 2500 chief executive officers from these economies. So what we're looking at is roughly a week of activities and probably about two or three weeks of preparation, press coverage, and for us to be in full operational mode. COUNCIL MEETING - 3 - May 18, 2011 As I said, you're looking at 21 heads of these economies, up to 2,000 members of the global media. This number, 1,000 business executives, has to be updated in our PowerPoint because we are looking at closer to 2,000 members for the CEO Summit. And we're looking at finance and trade ministers at a very high level. So there's just zero chance that many of us are going to be interacting with the heads of state themselves. But our opportunities, from an economic and government and cultural interchange standpoint, actually lies in the mid to high level ministers, who are going to be looking for opportunities to advance their agenda and see whether it overlaps with Hawai`i's agenda. In the short -term, the sort of hard economic impact has been estimated by the university to be about $120 million in direct spending based on 17,000 delegates. And the media exposure, which we're still trying to quantify, it is safe to say that if we were to purchase this media exposure in terms of gross ratings points throughout the Asia Pacific Region, it would be upwards of $100 million worth of exposure. It's nearly immeasurable. But it's probably second only to Hawaii Five-0 in terms of gross ratings points for the State of Hawaii. In the long -term, we are looking at economic development, increasing access to capital, new investment and enhanced trade. And the second point is really critical. We want to position Hawaii as a destination for high level and global meetings. One of our challenges for our tourism economy is that especially in the mainland of the United States, you have problems of business and government decision makers not wanting to hold a serious meeting in the State of Hawaii for fear that either taxpayers or shareholders will criticize them for meeting in Hawaii because we have a reputation for being such a great leisure destination that people can't fathom that we can also hold a serious meeting. APEC can be a moment for us to pivot with the continental United States market, but also with the Asian market, which doesn't have those same sort of predispositions against business travel to the State of Hawaii. Korea, the Philippines, Japan, and China are already in serious discussions with our convention center about holding some serious corporate meetings in the State of Hawaii. And of course, the community opportunity, which I'll flush out over the rest of my presentation, is to start to build the kinds of relationships that will bear fruit over the long run. The key themes for Hawaii APEC are Hawaii as a place of discovery, connection, and quality of life. We are going to focus on the following areas: renewable energy, health and life sciences, astronomy, earth and ocean sciences, agriculture, and education. We also want to emphasize those assets that we can show where there is a connection to an APEC economy. So for instance, we're working with your economic development office with the Russian delegation to talk about the Russian fort on this island. What's exciting, as I've been meeting with most of the consul generals from the APEC economies, is that they are looking for any presence of the people from their economy historically, economically, or even in terms of current culture so that they can make those connections because especially on the Asian side it is all about relationships. So they want to meet with the Filipino Chamber. They want to visit the Russian Fort. They want to know what is the history of Mexican - Americans in the State of Hawaii. So it's been a really interesting exercise in terms of building long -term cultural and personal and economic relationships. Of course, we have a lot to show. We want to show our sustainable growth. We want to show that we have one of the lowest carbon footprints among the United States and of course showcase our wonderful natural environment, that we COUNCIL MEETING - 4 - May 18, 2011 have the longest life span in the United States, the 5th longest in the world, and women as leaders, which is a critically important issue for a lot of member economies where for instance out of 21 economies only one is represented by a woman. Okay, so here's how we're actually working. The Hawaii host committee is a not - for -profit organization led by Peter Ho, the CEO of the Bank of Hawaii, and the Vice Chair is Tim Johns, the CEO of Bishop Museum. It's a public - private partnership. They've raised several million dollars to operate, but they are not running APEC. The State Department and the White House run APEC. What we are here to do is to host them, to facilitate them, and to try to make sure that things are running smoothly, and we maximize the opportunity for our needs. The State Department and White House have their own diplomatic and economic objectives. We're here to assist them in that first. That's our first obligation. And secondarily but not unimportantly, we also want to make sure that if we're going to have 20,000 people and 21 heads of state and ministerial leaders, we really want to show people what we've got. NCAPEC is the national organization for APEC. On the left side of the screen, the NSSEC coordinating council is the national security special events coordinating council. That is going to be led by our secret service agent -in- charge and there's a joint command with the secret service, with primarily our Honolulu police, some of the state DOD assets, and the state sheriffs department. The command is under the secret service to ensure that when you have 21 heads of state, not to mention senior secretary level leaders, including Secretary Clinton, Secretary Geithner, and all their counterparts throughout the APEC Region, security is really the most important thing. And on that topic you may have read or heard that the legislature failed to appropriate the necessary funding for the state's sheriffs department to provide the resources for the joint command. That is true. We did, however, work with the attorney general's office and found the statutory authority, because of the importance of this from a security standpoint, to expend the money anyway. And we have verbal assurances from the legislature that they will authorize an emergency appropriation in the first part of the legislative session J 2012. So although we're going to have to do a little bit more administrative work to make this work, from a security standpoint this will change nothing at all. And I want to assure everyone that we're going to have the joint command that will keep everyone safe. So here are some of the opportunities for involvement. We have opportunities for showcasing Hawaii in media packages, displays, events and activities. We're working with your county economic development office to put together media packages. So there is going to be what they call a media concierge at probably the convention center. And so the 2,000 or so members of media, especially before and after the actual leaders' meeting because during those two days we're not going to get any attention, but there will be opportunities for us to show our assets. What we're going to do is develop little itineraries, and we're working with Hawaiian Airlines and others, to make sure that if a member of the media is interested in coming to Kauai and learning about our renewable energy assets, and there are some very exciting things happening on this island as you councilmembers know, then we can show that. We also want to show off PMRF and some of your natural resources. And so we're working on tight little packages where they can kind of fly in and either spend one or two days to learn about the island of Kauai and what the island of Kauai has to offer. Most of this will be pre and post, not in the middle of. COUNCIL MEETING - 5 - May 18, 2011 I mentioned the operating structure. We have a host committee, a board of directors. We have a sort of more operational committee and then we have nine subject matter committees, whether they be marketing or security or business outreach. Here is a list of the APEC host committees. One thing I'll note because it looks like a committee full of people with significant responsibility is that it's a very broad cross - section of community leaders and I would say nearly to a person, everyone actually actively participates. This is not one of those board of directors where people come in and sort of bless the operation quarterly. We have weekly meetings. They are three hours. They are operational in nature. And you have CEOs and business leaders and government leaders drilling down at a pretty detailed level in terms of what needs to happen to make this successful. And I think this is a real model for cooperation. We're not getting any kind of jurisdictional pilikia between county and state, or between banks or any kind of nonsense like that. We're all working together, I think, very well. That's just a listing of our subject matter committees. The funds for the not -for -profit are primarily to support marketing, hospitality, and volunteers. There will be a thousand to 1500 volunteers. So there's going to be some training and care and feeding of volunteers. And then the logistical support, and a nine - person staff. Okay, so the neighbor island initiative, and this is really driven by the Governor and I in wanting to make sure that, again, although it's happening in Honolulu, there's an opportunity for the entire state to benefit. This is, as you know, consistent with the governor's desire to ensure that it is not an Oahu- centric administration, and you'll see that in, as he likes to say, "3- dimensions" with the Governor coming to Kauai to visit and being here personally and not just mouthing we don't want to be an Oahu- centric administration, but actually living that. And that means working with your economic development office, your chamber of commerce, your economic development boards to develop itineraries to show off what Kauai has to offer. Barry Taniguchi, the CEO of KTA Stores on the Big Island, is chairing the overall neighbor island committee. I want to point out we have a very good website, apec2011hawaii.com. So check it out and it is a good way to direct people to kind of understand what APEC is and what it isn't. We'll talk about the business opportunities in a second. We are aggressively asking for community involvement, but one of the things that the council leaders can help with and members of the public is in kind of helping people to understand what APEC is and is not. So for instance, the chair of the chamber of commerce gets asked very often, how do I get a ticket to APEC? There will be no tickets. I'll be lucky if I get in. It is a high -level ministerial meeting and head -of- state meeting between federal governments. So our opportunity is to host the thing, which is something we, because of our culture, because of our tourism infrastructure, we can do at such an excellent level that really our initial interactions with the State Department and the White House have been so positive because they are just not accustomed to a host city having it together like we do. We placed all of the 21 economies in various hotels, everyone's happy. We are on top of this at a level where we're now waiting on word from the White House and the State Department on a lot of decisions because we want to make sure to kind of knock everything down and not be scrambling at the last minute. I'll talk a little bit about the business opportunities and in your packet there is a business showcase. I think we're not calling it a contest. It is essentially an opportunity for anybody who thinks that they have something that is worthy of showing off at APEC leaders' week that they can submit an application. And there will be a community group to evaluate these applications, according to some criterion to show off what they've got. There will be virtual exhibits. There is going to be a lot of opportunities for a local business to show off what they've got. Now, I COUNCIL MEETING - 6 - May 18, 2011 should point out that there is limited display space in the convention center, so this is not going to be like an exposition where it's Blaisdell Center or some big hall where everyone can have a booth. There's really limited space because of security. But we are trying to make sure that we really show off what we've got to show and not just that we're a premiere location for hospitality, but that we've got great agricultural products, that we're becoming a legitimate leader as a renewable energy test bed, and that we're a good place to investment on our terms. So what do we need? First, I think you can help to educate the public about APEC and it's not just about how specifically to participate, but in my view it's sort of how to understand APEC. And if you'll just allow me to editorialize a little bit, here's how I see it. APEC is only a seven -day event. And so the idea that your economy can get transformed in seven days is not realistic. However, what this can be for all of us is a moment to think about how we, as communities, as government leaders, as community members, and as private sector companies, interact with Asia. If we think back to 30 or 35 years ago and the relationship that Hawaii built with the Japanese, that wasn't done by accident. That wasn't done totally organically. It was done because of a sustained effort on the government level, on the cultural level, on the economic level. And so what we really want to do is take APEC as an opportunity to build the kind of relationships that we have with Japan throughout the Asia Pacific region and you, the government leaders here, are the ones that are going to be able to sustain those relationships over the long run. Whether it be through sister city relationships, whether it be through facilitating economic development, but this is a long -term play. Our economy doesn't suddenly get connected to China and Chinese Taipei and further connected to the Philippines and Japan on November 13th, but we can begin a process that will allow us to take advantage of Asian growth over the long run. I do want you to, if you wouldn't mind, push out information about the business showcase because there is a lot of I would call "pent -up demand" in the business community to try to figure out how they can participate. You can talk with your county economic development office to coordinate potential familiarization tours. They call them FAM tours, where members of the media can come to Kauai and learn about the economic opportunities here. The one thing I'll point out with respect to the FAM tours is we're doing everything that we can to tee them up, but they are voluntary. So I just want to kind of manage the expectations there. We're very hopeful and relatively confident that you will get visitors from media outlets interested in knowing what there is to offer, but again, it's up to them to come to Kauai and write about Kauai. And then it's up to them what they write about Kauai. So we're doing everything we can to allow the best possible opportunity. And then finally there is a document in your packet, which is just the five things that businesses can do to prepare for APEC. And the one message I would offer in addition to what I've said about the business showcase is that businesses should not wait for government. Businesses should not wait for the state department. They shouldn't wait for me. They shouldn't wait for the APEC host committee. If you've got a viable economic strategy or business strategy that you think can work, then get going. We're happy to facilitate it, but it doesn't all have to be brokered through government or through this not - for -profit host committee. Businesses should find their own opportunities within APEC because APEC is a primarily private sector focused enterprise and so all of you folks in the private sector, come up with your own marketing strategies, get out there, figure out your way to sort of wedge your way in. The President and CEO's name and number Gregg Yamanaka is his name is on the last slide, and there's the information in COUNCIL MEETING - 7 - May 18, 2011 terms of how to get in contact with us. But if you have any suggestions, questions or concerns, you can always contact my office as well. So I would be happy to answer any questions or hear any suggestions that the council may have. Council Chair Furfaro: Thank you, thank you very much, Lt. Gov. Schatz. That's a very interesting overview that you gave us, especially on the two key components that are very much of interest with Kauai. I will make note to George if there becomes an opportunity to do anything with a Russian delegation, I'll be very happy to share some historic overview with them. A lot of people believe there's two Russian forts on Kauai, but there's actually three. There was Fort Barclay down at Wai`oli Park and I have a little opportunity to share some information with George. And then of course, within the Mexican delegation back in 1848, as we know many Mexican vaqueros came here to launch us on our ranching exploits including Queen Kapule who had the Cowboy Castro for the Wailua area and actually on my wife's family Louis Antonio Domingo Gomez out in the Princeville area. So a lot of historic pieces that can be shared and we'll certainly do our best. One of the very interesting things, I think you shared, was the $100 million worth of media value in showcasing our place. As you may or may not know, Kauai has a small share of the Japanese visitors, but the opportunity for us to expand our east -bound visitor at a time when they are recovering from tragedy and we're concerned that we might lose market share on Kauai to islands like Maui and Oahu, who need to make up for that market, these new markets will give us an opportunity to showcase. So I really appreciate you sharing these overall benefits and you can count on Kaua`i's finest to attempt to do our absolute best. On that note, Council Vice Chair Yukimura, the floor is yours. Ms. Yukimura: Thank you, chair. Thank you, Lieutenant Governor, excellent overview. Lt. Gov. Schatz: Thank you. Ms. Yukimura: You were referring to a packet and I don't know that we got any packet. We do have one flier. Lt. Gov. Schatz: There should be two fliers. It's only a packet for me because I have the printed version of the PowerPoint, so excuse me. Ms. Yukimura: Okay. Oh and then if we could get a copy of your PowerPoint. Lt. Gov. Schatz: Sure. It's now on your laptop, so... Oh, apparently the APEC host committee does not allow distribution of the PowerPoint. I'm sorry. I'll check on that and see if we can get a.. Ms. Yukimura: Okay, no, there was just important information. Lt. Gov. Schatz: Yeah, I'm not sure about that, so. Let me double check because maybe we can make an exception for the county council. Ms. Yukimura: Well, okay. Thank you. Lt. Gov. Schatz: For what it's worth, it's part of the record, so I'm not sure we're allowed to withhold it from you and I'm not sure I want to check with the Office of Information Practices. Mr. Bynum: Please don't. COUNCIL MEETING - 8 - May 18, 2011 Ms. Yukimura: We know exactly where you're coming from on that score. Otherwise, I don't have any questions, but you've given us a good framework from within which to work and we're excited for the ways we might make connections. Lt. Gov. Schatz: Thank you. Council Chair Furfaro: Councilmember Kuali`i. Mr. Kuali`i: Aloha, Lieutenant Governor, mahalo. Lt. Gov. Schatz: Aloha. Mr. Kuali`i: I just had one quick question. I thought I heard you say in the beginning hope to see you all there. So if I was able to get over there for a day or two at the most from November 7 to the 13, when is the best day if you could only get there for a day? Lt. Gov. Schatz: Let me have my staff get back to you. There are going to be some opening receptions. There's a governor's reception, which I think might be the most appropriate venue. As you know, especially with Asian government officials, presence is critical from legislators, from senior officials. And so there will be instances in which we want to make a good showing. And so we'll make sure to reach out to you with respect to when the best opportunities for Hawaii generally making a good showing would be. We'll let you know. Mr. Kuali`i: That's it. Thank you, Mr. Chair. Council Chair Furfaro: Thank you. Mr. Bynum? Councilmembers? Ms. Nakamura: Just a quick question. So this Hawaii Business Innovation Showcase, if a business wanted to pursue this, what would be the best way for a Kauai business person to try to be a part of this event? Lt. Gov. Schatz: Oh, just go to apec2011hawaii.com and the application is very straightforward and downloadable at apec2011hawaii.com. Ms. Nakamura: So they submit an application. Lt. Gov. Schatz: Yes. Ms. Nakamura: And then some will be selected. Lt. Gov. Schatz: And then some will be selected. But I want to be clear. The business showcase is really just one avenue, and frankly, very few will be selected. And so I think if I were to give advice to a company, I would say apply through this and then plan on not getting it and develop your own marketing strategy that doesn't get brokered through the Lieutenant Governor's Office or the APEC host committee because as I said, what we're here to do is tee up APEC the best we can. There are going to be 2,000 CEOs in the room —well not in the room — but there will be 2,000 CEOs in circulation, thousands of finance ministers and key decision makers. And so at that point, we're happy to provide advice, the host committee can provide advice, but it's a private enterprise at that point. And we want to make sure that both because we want to manage expectations, that we're not going to place everyone with a senior finance minister, but also because they COUNCIL MEETING - 9 - May 18, 2011 need to understand what APEC is and it's focused on private sector and private enterprise and trade, which means we should try to tee everything up and then get out of the way. Ms. Nakamura: Thank you. Council Chair Furfaro: Council Vice Chair Yukimura? Ms. Yukimura: Yes, you know, there's this business innovation process, which you have explained clearly, how does the stories part come involved, which I think is so creative and innovative in and of itself? Lt. Gov. Schatz: That piece, we're working with your county economic development office to develop what we think are the sort of key anchor stories about the island of Kauai. Ms. Yukimura: I see. Lt. Gov. Schatz: But we continue to look for input. That process is not pau. There are some obvious ones in terms of renewable energy and PMRF, but we're open to further discussion and frankly it depends. We may have someone from Hong Kong that wants to learn just about renewable energy. We may have someone from Japan that wants to know about our native rain forest, right. So we kind of have to have a menu of opportunities for people to write the stories that they're interested in. Ms. Yukimura: Yeah, because stories bring to mind, for me, storytelling and actually culture and arts. So maybe there's a way to combine all of it. Lt. Gov. Schatz: Yeah. Ms. Yukimura: Yeah, thank you. Lt. Gov. Schatz: Okay, I'm being told there's also a separate RFP on the host committee website that is a call for stories. This website has been built over the last three or four months, and it's gone from a sort of static informational website to the place you should go to find information about APEC and we'll be up on Facebook shortly Ms. Yukimura: Thank you. Council Chair Furfaro: Lieutenant Governor, first of all, let me extend congratulations on the standard that the state and your administration, the governor's administration, have really set, almost a new standard for the coordination of these international events. And we congratulate you for the fine job thus far, and we also certainly want to say you can count on our support. If there's anything, certainly make a request through the mayor's office, make a request through the council. I know many of us personally would like to volunteer at events on Kauai to really showcase the destination. And on that note, I want to also say thank you for just coming over and giving us this briefing. We went through a little budget process and put some money on the side to market our particular needs, but it's very good of you to do this to be over here, very good. And we'll stay in touch. I'm going to see if there's any testimony from the public here that might have a comment about the event. But we're looking forward to doing whatever we can to help the state in this event. COUNCIL MEETING -10- Lt. Gov. Schatz: Thank you very much. councilmembers. May 18, 2011 Thank you, Council Chair Furfaro: Thank you. Is there anyone in the audience that would like to speak on this posted agenda item? If not, to the media people, the camera man in particular, we are going to take our 10- minute recess now because when we come back, we're going to take some action on the rest of the agenda, but it gives us an opportunity to individually thank the Lieutenant Governor. So we're on a recess for 10 minutes. There being no objection, the meeting recessed at 10:18 a.m. The meeting was called back to order at 10:30 a.m., and proceeded as follows: Council Chair Furfaro: Members, before we go any further, I would like to have a moment of personal privilege. I'd like to ask Cyndi, if I could ask our intern, who is in the audience, Mayank Bishnoi, if I've got that right, to just come up to the Mike for a second and say hello. MAYANK BISHNOI: (Inaudible.) I'm Mayank Bishnoi. (Inaudible.) So I'm here just to (inaudible). Council Chair Furfaro: Well, we're very glad that you're checking out the mayor's office, but you're welcome to check out the county council any time. Mr. Bishnoi: Yeah, thank you, thank you. Council Chair Furfaro: So anyway, I just wanted to introduce Mayank and JoAnn? Ms. Yukimura: I just have a question. So what is your major and what brought you here? Mr. Bishnoi: I'm a political science major. I usually intern with the senator of Tennessee, but I wanted to get a different spin on things, so I asked my uncle, he lives here, if I could come down to Hawaii and see if I could work with the mayor. So that's what I'm doing for the next couple of weeks. Ms. Yukimura: Well, you'll learn a lot of practical political science. Mr. Bishnoi: Yeah, thank you. Council Chair Furfaro: Thank you for being here with us today. Mr. Bishnoi: Thank you. Council Chair Furfaro: Okay, we're back from recess. Members, thank you for giving me a personal moment of privilege. I want to close the APEC thing and then go to complete streets real quick and then back into the agenda mode, if I could, please, Mr. Clerk? Mr. Nakamura: Council Chair, if we could get a motion to receive communication 2011 -148. COUNCIL MEETING -11- May 18, 2011 Ms. Yukimura moved to receive C 2011 -148 for the record, seconded by Mr. Bynum, and unanimously carried. Council Chair Furfaro: Thank you and then we'll go to page 3, if we could. Mr. Nakamura: Council Chair, we're at the bottom of page 3 of the council's agenda on a communication for receipt, C 2011 -160. C 2011 -160 Communication (05/05/2011) from Council Vice Chair Yukimura, transmitting for Council consideration, a resolution promoting the Safe Routes to School Program, which helps form multidisciplinary task forces at each participating school, enabling students to walk and bike safely to school. Council Chair Furfaro: Thank you. Councilwoman Yukimura, as you know, this is just the communication. We'll get to the resolution later, but if Bev and others wanted to speak, this is the time to speak and I'll turn the floor over to you and suspend the rules. There being no objection, the rules were suspended. Ms. Yukimura: Oh, Mr. Chair, thank you. This is just a statement of support from the council, the resolution is, and if Miss Brody would come forward. As you recall, last week as had Deb Hubsmith from the national program speak about it, but the resolution is here today for us to act on. And a brief statement from Bev and... BEV BRODY: My name is Bev Brody and I'm the Get Fit Kaua'i Island Coordinator. JENN BLOOM: I'm Jenn Bloom. I'm the Get Fit Kaua'i Safe Routes to School Coordinator for Kaua'i. Ms. Brody: Thank you very much for hearing us this morning. We realize that there is a safe routes to school resolution that's on the agenda later in the day, and Jenn and I are here to just urge you all to please vote in favor of it. As JoAnn said that Deb was here last week, Deb Hubsmith, and she helped us move forward on many of the initiatives. We had a very, very successful walk to school day in Koloa, where over half of the student body was present and walked and biked to school. That's 50% of the children walked and biked to school. So the need is there. We have met with public works since then and we are actually going to be applying for the safe routes to school money that hopefully will be released by HDOT in the early fall. Our intent is to create task forces at now five different schools and apply for an islandwide safe routes to school grant that will allow our children to walk and bike to school safely. Ms. Yukimura: Jenn? Ms. Bloom: I think it's just important to vote for the resolution because it's helping, it's garnering your support to help us to continue with the initiatives that we have already started to implement on the island. So it's i mportant to have your support in that matter. Ms. Yukimura: Thank you. Council Chair Furfaro: Thank you. COUNCIL MEETING -12- May 18, 2011 Ms. Yukimura Are there any questions? Mr. Bynum: I just want to say what a pleasure it's been attending a Built Environment Task Force and to see this collaborative effort grow over the last year and a half with your guidance and leadership and particularly Marie Williams from planning, who facilitates those meetings. And it's bearing fruit, it's bearing fruit in very particular and significant ways when Deb Hubsmith was here. I'm already hearing from our public works department about them changing some of their plans related to safe routes to schools and complete streets issues. So thank you. Ms. Yukimura: Any other? Councilmember Kuali`i. Mr. Kuali`i: Aloha and mahalo. Yeah, just to say thank you for all the work that you've been doing and will continue to do, and I'm really, excited about what's to come. Yeah, yesterday I had a briefing with the housing department, about eight of them, the director and some of the different managers from different areas. And I was excited to hear about the long -term potential development in `Ele`ele and how it's on the coffee plantation side of the highway, but the school is on the other side. I started to question about complete streets and making sure it's walkable. They said, oh yeah, and then they showed me their plans and so they're already on it and I'm sure it's because of your efforts and thank you so much. Ms. Yukimura: Any other comments? Councilmember Nakamura? Ms. Nakamura: Good morning. I just wanted to thank Get Fit Kauai for facilitating the discussion at the school level. At Kapa`a Elementary School we have teachers talking to parents, talking to administrators, and now with the county about how to improve the routes to school. And it wouldn't happen without that type of collaboration that you are making happen. So thank you so much for your commitment to this effort. Ms. Brody: Thank you. Ms. Yukimura: Thank you. Chair? Council Chair Furfaro: Thank you very much. Yes, ladies, thank you again for being here. And I did hear Mr. Bynum indicate that he was at one of the recent meetings and so forth, but I think this is a general statement I want to make. Not all of us, perhaps through some guidelines that I've sent out in internal memorandums about having more than two of us actually participating in a meeting, especially when concepts, ideas and decisions are being thrown out because that would put us in an area that when we came to a vote, if we were challenged, it would be seen as a serial communication because decision processes might surface. So just to let you know, we are trying to encourage two to participate where possible, but certainly not as a group without getting more clarity there. So I think you'll see that the support will come out when we get to voting on the resolution. Ms. Yukimura: Yeah. Ms. Brody: Thank you so much. On that note, I'd just like to ask, is it breaking the Sunshine Law or whichever to invite everyone to the annual meeting for Get Fit Kauai? No? No decisions are being made. We're just going to have a wonderful brunch. COUNCIL MEETING -13- May 18, 2011 Council Chair Furfaro: Send out the invitation. Ms. Brody: I will, thank you. Council Chair Furfaro: But I just wanted to share with you, so you'll see the celebration in the vote on the resolution. Don't be discouraged because you only see two councilmembers attending the workshop, so. Ms. Brody: I feel the love. Thank you so much. It's great and I'm very happy to have your support. Thank you very, very much from all of the members of Get Fit Kauai. Ms. Yukimura: Thank you. And I might mention that I did check with the Lieutenant Governor about those $7 million in funds. He said he believes and will confirm that it will be available this fall. So that's great and Kauai obviously has already the best plan and application, which is great. Any more comments? Thank you very much. Oh, wait, hold on. Mr. Chang: Any more comments, not necessarily questions, comments? Ms. Yukimura: Yes, go ahead. Mr. Chang: I just wanted to say thank you again. It was a great presentation last week. But I think when these routes get established in benefit for obesity or the children or the kids, there are a lot of seniors who do their walks also. So you're making it safe for everybody to utilize the path. It's not just going to be during school hours. And there's a lot of parents with youngsters on strollers and whenever you get a safe route, we're including everyone, not just the schoolchildren. So I just wanted to say on behalf of just a good route that's being visible, it's used, it's safe, I think that benefits the whole community. So I just wanted to make that comment in addition to the goals of your organization. So thank you. And, again, thank you for the presentation. And I think Deb really enjoyed herself last week also and I know Kauai is in her heart. So thank you very much. Thank you, Councilmember Yukimura. Ms. Brody: Thank you very much. Just on that note, we are not going away. We are going to have safe routes to parks, safe routes to school, safe routes to the stores, safe routes to the libraries. So everything that you're talking about can fall in under safe routes to school and it's for everyone, yes, exactly. Mr. Chang: It reminds us that you are from Canada because I like when you say, "safe routes." Ms. Brody: Did I say roots? Mr. Chang: Routes. Mr. Brody: Safe roots to school routes. Ms. Yukimura: Well, you know the thing about safe routes to school is often it's a parent or a grandparent accompanying the child to school. It really can be quality time when you walk every day. And then the parent or the grandparents getting the exercise too. COUNCIL MEETING -14- May 18, 2011 Mr. Chang: And they have to walk home for the double exercise to come back and pick them up. Ms. Yukimura: That's right, yes, yes, thank you. Any other questions or comments? If not, thank you very much. Ms. Brody: Thank you very much. We really appreciate your time and your support. Council Chair Furfaro: Thank you, ladies. Ms. Yukimura: Chair? Council Chair Furfaro: Thank you. Is there testimony from anyone in the audience? Ken, please come right up. KEN TAYLOR: Good morning, Chair, Councilmembers. My name is Ken Taylor. I am in support of resolution 2011 -58. I think Kauai has really been blessed having Bev arrive and take on some of the issues that she has dealt with over the last couple of years and I expect the next couple of years will even be greater events taking place. But I would just like to say to the people in the community that don't know Bev, they should go out of their way to meet this gal because she's a dynamo, she's a dynamo. I don't know how we were blessed with having Bev arrive, but it has happened and I just think it's great. I think this resolution is extremely important and look forward to working with Bev in the future on additional activities for the community. So, again, please support resolution 2011 -58 and I'm sure there'll be a lot more to follow. Thank you. Council Chair Furfaro: Thank you. Is there anyone else? Mr. Mickens? GLENN MICKENS: - Thank you, Jay, for the record Glenn Mickens. I, too, want to say I do support this resolution. There is an 800 -pound gorilla though always lurking in the sideshows and we have to worry about how we're going to fund this thing. It sounds great and we definitely need to make everything we possibly can safe forever our kids, whether they are biking or walking or whatever. But you're going to have paths. You're going to have to have sidewalks or something and again, we're talking about probably millions of dollars to be able to make this a reality. So in the real world, I just want to make sure that we don't just talk about something that we're going to do any more than the landfill or anything else we've been going after for 20 years, the money has to be there. Thank you. Council Chair Furfaro: Thank you, Glenn. Is there anyone else in the audience? If not, can we move to receive this communication? There being no one else wishing to testify on this matter, the meeting was called back to order, and proceeded as follows: (Inaudible.) Council Chair Furfaro: No, I'm asking. When I say, can we move to receive, I need a motion, I need a second. Mr. Chang moved to receive C 2011 -160 for the record, seconded by Ms. Yukimura, and unanimously carried. COUNCIL MEETING -15- BILL FOR SECOND READING: May 18, 2011 Council Chair Furfaro: Thank you very much. The next item, I know Mr. Costa has an 11:30 meeting, I am going to ask that we go to the Kauai Marathon, but first, I will ask Mr. Chang if he would like to recuse himself from this portion of the meeting? Mr. Chang: Thank you, yes, Mr. Chair, I will be recusing myself, thank you. (Mr. Chang was noted recused from the meeting on Bill No. 2404.) Council Chair Furfaro: Thank you. On that note, may I have the clerk read the item? Mr. Nakamura: Council Chair, we're on page 7 of the council's agenda under Bills for Second Reading, Bill No. 2404. Bill No. 2404 — AN ORDINANCE AMENDING ORDINANCE NO. B- 2010 -705, AS AMENDED, RELATING TO THE OPERATING BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII, FOR THE FISCAL YEAR JULY 1, 2010 THROUGH JUNE 30, 2011, BY REVISING THE SURPLUS AND APPROPRIATIONS ESTIMATED IN THE GENERAL FUND (Kauai Marathon grant $150,000.00) Council Chair Furfaro: Thank you. On that note, Mr. Costa, I'm going to ask you to come up. I'm going to suspend the rules. There being no objection, the rules were suspended. GEORGE COSTA, Director of the Office of Economic Development: Aloha, Council Chair Furfaro and Councilmembers, for the record George Costa, Director for the Office of Economic Development. Council Chair Furfaro: Do you have anything to add or summarize from the earlier reading in committee of this bill? Mr. Costa: Yeah, I just wanted to emphasize the event itself as a positive event for the island of Kauai. We had presented the benefits, not only economic benefit, but the benefit to the community. I know there were some concerns or requests to look into additional funding, and when Mr. Craver was here, he did mention that he has applied with or inquired with the HTA for the last couple of years. He has received verbal commitments, but nothing materialized. And I received yesterday a verbal commitment from HTA for funding between $25,000.00 and $35,000.00. I'm waiting to get something in writing. If that materializes, then I would suggest maybe reducing the county's portion by that amount, whatever we receive from HTA. And in conferring with Sue Kanoho of the Kauai Visitors Bureau, in February we had the $200,000.00 visitor stimulus money bill and there were several facets of that bill that were targeted towards our visitor industry. And it's also a show to the legislature that it's Kauai County's investment in the visitor industry. One of the items in there, we were planning on a promotion, actually it was going to be this month, to go back to Japan because our Japanese arrivals were on the increase over previous years. And so we had allotted $20,000.00 in that plan go back to Japan. But in light of the tsunami and the devastation in Japan, obviously it's not appropriate at this time. So there is that $20,000.00 that is with Kauai Visitors Bureau and I'm not sure if this is the COUNCIL MEETING -16- May 18, 2011 appropriate time, but here's another, I guess idea, to reduce what we're requesting even more, by another $20,000.00 to make it $50,000.00. So I just wanted to share that with all of you. Council Chair Furfaro: So Mr. Costa, may I ask then if in fact we have an amendment that reduces this money by $50,000 at this point, and it's resummarized at $100,000, you understand that we would do that based on the testimony you just shared with us. Mr. Costa: Right, right, and again, this all came within the last 24 hours, in fact, less than 24 hours. So what is needed is maybe an additional 24 hours to confirm in writing that we have those commitments, then I'm more than happy to entertain an amendment from the county council. Council Chair Furfaro: I guess that last part I heard, you would be okay to entertain an amendment from the county council. Is that what I just heard you say? Mr. Costa: That's what you just heard. I don't know if that's the proper procedure. Council Chair Furfaro: That would be. We might have to take a few minutes to write it up. Oh, we have an amendment already. See how quickly that understanding goes? Now I'm going to recognize Councilmember Kuah'i. Mr. Kuali`i: I just wasn't clear on what I heard. I thought I heard that this all came to be in the last 24 hours, but didn't you also say you need another 24 hours to confirm in writing? Mr. Costa: Right because this is all verbal... Mr. Kuali`i: So if we move forward and vote today, and you are unable to confirm, then you understand it is what it is. Mr. Costa: Well, I know for a fact $20,000 with the Visitors Bureau is there and in speaking with Sue Kanoho, so that is available. I haven't heard directly from HTA, but from a third person I heard that they made that commitment. So that's where I would want to get that confirmation. Council Chair Furfaro: Okay and I think what Councilmember Kuah'i is saying is you've just identified the fact that we're in shallower water now and therefore if we take action on this today, you need to know you are in shallower water from what might be amended from the original request, so. Council Vice Chair Yukimura. Ms. Yukimura: I mean one option we have is to just defer the bill another two weeks, if the final confirmation is required. But it is up to the council. Council Chair Furfaro: Councilmember Nakamura. Ms. Nakamura: A couple of things. I did have a chance to speak with Michael Story, who's the sports event person at Hawaii Tourism Authority. He called me from Australia yesterday and he did confirm that a contract is in the attorney general's office. He could not confirm the amount, but the range is accurate, the $25,000 to $35,000 range. I also this morning spoke to Mike McCartney, CEO and President of HTA, Hawaii Tourism Authority, and he COUNCIL MEETING -17- May 18, 2011 said that the HTA is supportive of this event, that they were looking for a project on Kauai such as this to support and it's something that they support. So I feel confident about moving forward and not holding this up. Ms. Yukimura: Good. Mr. Costa: Thank you. Council Chair Furfaro: George, if there are no more questions from the members, I'll ask if there's people in the audience that wish to testify. Is there anyone in the audience? ROB ABREW: Aloha, my name's Rob Abrew for the record. My testimony is really not about the event itself but the process of the administration of this grant. In 2009 the marathon received a county grant of $10,000.00, and in 2010 they received zero dollars. And this year as of this morning they approved the budget for 2012, there's $120,000.00 in there for that. My question is if we look at Code 6 -3.1 for appropriating of funds to private organizations. "Appropriation of Funds: All grants made by the County of Kauai to private organizations are to be made in accordance with the standards that the private programs so funded yield benefits to the public and accomplish public purposes. No grant, subsidy or purchase of services contract to a private organization shall be made or allotted unless the private organization submits an application indicating that the organization complies with the following criteria: The private organization is a not- for -profit organization, corporation or unincorporated association, chartered or otherwise engaged in charitable services. The purpose for which the private not -for- profit corporation or association is organized provides benefits to the people of the county. The purpose for which the not - for -profit corporation or association is organized and for which the group is requested provides services or activities to meet a distinctive cultural, social or economic need for which adequate federal and state funding cannot be secured." And then underneath here, Organizations Applying /Granted Funds. "No grant, subsidy or purchase of services contracted to a private organization shall be made or allotted by the County of Kauai, unless a private organization so funded agrees to the following: to comply with all federal and state laws prohibiting discrimination —most of that is discrimination; to comply with all applicable licensing requirements of the county, state and federal governments, and all acceptable accreditation and other standards of quality generally accepted in the field with the recipient's activities." I think right there in 2009 we violated the code by funding this. In 2009 and 2010 for tax records for this marathon, there is no GE tax license as of last night. So this county has funded this organization that had not met the requirements or will meet the requirements until that GE tax is paid for. WILMA AKIONA, Council Services Assistant: Three minutes, Mr. Chair. Mr. Abrew: Or that GE tax has been resolved through the state. And I would hope that this county doesn't release any money to where that money could be used to pay past expenses. Thank you. Council Chair Furfaro: Thank you. Anyone else who wishes to speak on this? Glen. COUNCIL MEETING -18- May 18, 2011 GLENN MICKENS: Thank you, Jay, for the record, Glenn Mickens. First, I do appreciate any effort that George puts out to get other than taxpayers' money for this event. If we can find it, great; any amount will help. However, I believe that you have a copy of my testimony and you can follow me as I read it for the viewing public. I believe that Councilmembers Rapozo and Kuali`i more than made their case about the funding of this marathon at the last committee meeting. The council is being asked to fund this year's marathon for $150,000.00 and was asked on Tuesday, May 10th to fund $120,000 for the 2012 race, a total of $270,00.00 being asked for in one year for two races in two years. Simple math, $150,000 plus $120,000 equals $270,000. As Mel and KipuKai so factually said, why not wait until the marathon is over this year and see if there will even be a race in 2012. Since the race lost $192,987.00 in `09 and lost $158,751.00 in 2010, and this year, without the injection of the county's $150,000 grant, the race is optimistically expected to lose $150,000. At least that's the way I interpret the figures on the spreadsheet. And I say optimistically since the economy is still in bad shape and the Japan tragedy could make the red ink even worse. Mr. Sacchini is on record as saying that the race has to pay for itself in three years or he leaves. And again, without the $150,000 taxpayer grant, the event is still predicted to be in the red. So the chances are slim that there will be a race in 2012. If this event is supposed to be revenue - neutral or make money for those running it, why should the taxpayers be asked to subsidize any part of it? Since we have been told how much revenue is being generated by this race from tourism etcetera, then let those in the hotel or restaurants, the gift shops, the helicopters, and the boat recreational activities pay for it. They are recipients of the income, not the taxpayers. We don't help many worthwhile organizations on Kauai that hold fundraising events, such as the Taste of Hawaii put on by our wonderful Rotary Club. There is no other organization that does more outstanding volunteer work for its citizens than the Rotarians and this fine body does not receive one cent from the taxpayers such as the grant that has been given to this marathon group. I respectfully ask that you use some common sense in this issue and vote as Councilmembers Kuali`i and Rapozo have. In other words, I'm definitely against funding this thing, okay? Thank you very much. Council Chair Furfaro: Thank you for your testimony. Is there anyone else J the audience? KEN TAYLOR: Council Chair and Councilmembers, Ken Taylor. I think you've had some really good testimony this morning from the previous two speakers. And I have said in the past that I'm supportive of the marathon, but I have trouble with the funding of it through county coffers. And unfortunately at your last meeting with what I thought was a good alternative to this process after KipuKai had submitted a resolution or an amendment to the current resolution, you voted it down and moved forward to proceed with giving the money. I think you should revisit that proposal from KipuKai and consider putting off giving this $100,000 or $150,000 to them until after the race this year. It only makes sense with the information and knowledge that you have, comments from the race people that there may not be a race next year. And that decision will be made, I assume, after the race this year and the financial picture is looked at. So I just don't see why you folks are feeling so inclined to move forward with just throwing out this money when it could be done later this year with better knowledge of the future. So thank you very much. Council Chair Furfaro: Thank you, Ken. Is there anyone else who wishes to testify on this? If not, I'm going to call the meeting back to order. COUNCIL MEETING -19- May 18, 2011 There being no one else wishing to testify on this matter, the meeting was called to order, and proceeded as follows: Council Chair Furfaro: I suspect that an amendment is being introduced? Ms. Yukimura: I think we're on the resolution, aren't we? Council Chair Furfaro: We're on the bill. Ms. Yukimura moved to approve Bill No. 2404 on second and final reading, seconded by Ms. Nakamura. Council Chair Furfaro: We have a motion to approve the bill as submitted at $150,000. I believe we have an amendment that reduces it to $100,000. Ms. Nakamura: Yes, I'd like to introduce this amendment to Bill No. 2404, reducing the sum for the Kauai Marathon from $150,000 to $100,000 based on discussions with George Costa this morning, Hawaii Tourism Authority, Kauai Visitors Bureau. It shows that an event like this can be a collaboration that involves the state, the county, the visitor industry, and I would like to put forth this amendment. Ms. Yukimura: Second. Ms. Nakamura moved to amend Bill No. 2404, as shown in the Floor Amendment attached hereto (see Attachment No. 1), seconded by Ms. Yukimura. Council Chair Furfaro: Okay, this bill has been appropriately amended with an introduction by Councilmember Nakamura. Is there any further discussion on the amendment? But before we do go there, I will ask the county attorney and the county clerk to please gain the written testimony from the earlier speaker querying the GET so that it can be followed up by the county attorney. But now we're on discussion on this amendment. Councilmember, did you want the floor? Mr. Kuali`i: Yes, Mr. Chair. I'm glad to hear that in the last 24 hours that there was some movement and that there is this additional funding from the HTA and then from the Kauai Visitors Bureau, I guess. I'm just wondering if we might not give it a little bit more time if there might not be more funding out there? And if there was any way, maybe Councilmember Nakamura would consider giving it more time, maybe deferring it? Ms. Nakamura: What would be the purpose of this deferral? Mr. Kuali`i: It looks like we're getting some movement on identifying additional sources. I think one of the major objections that I know I have and that I've heard from the citizens is that the county is being asked to cover the whole share, and that other important partners, such as HTA, KVB, the hotel association, just different business partners, business associations, and this is definitely a start of the $270,000 for the two years that $50,000 is coming and that reduces our county's funding to $220,000 is a good start. But I was hoping that maybe with a little bit more time, we could get a little more movement. COUNCIL MEETING -20- May 18, 2011 Ms. Nakamura: Yeah, I'm not of funds that are out there. I'm comfortable interest in the council to make a decision today. fallback position. sure what other sources, big chunks moving ahead to see if there is an And if it's not, then that could be a Mr. Kuali`i: I I think just as far as other sources, the Kauai Marathon lists many, many partners and that the key partners are the County of Kauai, the Kauai Police Department, and then the Po`ipu Beach Resort Association, Sheraton Kauai, and Grand Hyatt Kauai Resort and Spa. And then they also list many businesses, many local businesses here on Kauai, and other businesses that are back on the continent, businesses that they highlight as premiere sponsors. Now the moneys from all of those parties combined, the actual funding is projected at $50,000. And that is already included in their proposal when they were asking the county for $150,000. So with a little bit of movement and some money from HTA and KVB, yeah, that helps to bring the county's portion down from $270,000 to $220,000. But there seems to be a lot of potential sources out there, and I think in some of the discussion and testimony before and that's probably what motivated you to move on some of what you got was that we saw that it wasn't done by the organization. Council Chair Furfaro: Councilwoman Yukimura. Ms. Yukimura: I think as Councilmember Kuah'i points out, there is a lot of both in -kind and other support that is coming already from the hotels and some of the others involved and actually the real contributions of the small businesses, which operate on very small margins, is that they're going to keep their employees employed. The whole purpose of this kind of economic stimulus and creating a signature event is to increase the occupancy rates and the business activity in the low periods of the season or the low seasons so that people can stay employed on hopefully a full workweek or at least not get reduced too much in their workweeks. And hopefully, if the event can grow and that is something that has to be worked at because it doesn't happen right away. It will become more like the Merrie Monarch or the Honolulu Marathon, which is really generating a lot of economic activity. I think that's our goal with respect to a signature event. And that's why there needs to be more than one year of funding, but not a whole lot after two or three years. And it is a risk, but it's a risk we're willing to take to try to build an event that will be sustainable and productive in terms of business activity, visitor activity, and fulltime employment for our workers. Council Chair Furfaro: Thank you. Mr. Bynum, did you have anything? Mr. Bynum: Just that I appreciate the work that George and Councilmember Nakamura did to find the funds that are available. I agree with Councilmember Nakamura that it's unlikely there would be other sources. I supported this in the budget; I support it now because it's investment for economic development. I do want to tell a quick story. This morning I was coming here, my daughter who's a student and also works at Kauai Pasta said, hey, what's that about the marathon? And I explained it to her and she said, all I know is when the marathon's on, we're slammed, lots of work. That means more hours for Kauai people, better tips. It's in the off - season as JoAnn said. And I know this is anecdotal, but just from my 21- year -old daughter's perspective, hey, I know that week we're slammed and it's usually an off - period for them. So that's the kind of somewhat unmeasurable impact that these things have. COUNCIL MEETING -21- May 18, 2011 Council Chair Furfaro: Thank you. Councilwoman Nakamura, I want to say that I do plan to support your amendment as George was able to give testimony accordingly. And for those who came and testified, I also want you to know I've been discussing with the staff that should this amended amount pass, it should be noted for economic development that I will be putting narrative in the operating budget that actually reflects that for the year 2012. I am looking for a narrative that references before any of next year's money can be expended, we need to have a memorandum of agreement signed by the organizers. So in fact if we want to pursue having a contract for that year, we in fact know we have some written documents in the narrative. So George, you won't see that until we actually publish the council's message, but I think that's the next step. So I'll be supporting this amendment. (Inaudible.) Council Chair Furfaro: Yes, go right ahead. Ms. Nakamura: Thank you, chair. I just wanted to reiterate that the direct economic benefits for this event is $3.15 million. The indirect economic benefits that Councilmember Bynum alluded to is $5 million. So this community directly benefits from this event. Signature events don't happen overnight. They need to be nurtured. They need to be built on. They need to grow based on experience, learn from the lessons, and only that way can it grow to be a real premier event for Kauai, and I think that's something that this community is lacking and I think this event tries to fill that void. I would like to encourage the organizers of this event to use local vendors and services with these county funds as much as possible. And I think this funding issue has raised the ... for me, it's raised an interest in looking at what are the other forms of sports tourism that's going on on this island? And what are some of the other strategies we should be looking at? Whether it's a statewide Little League tournament? A volleyball tournament? But these, even canoe races, that bring outside visitors, whether it's state or from the mainland or nationally here, we need to be looking at that and have a proactive strategy for encouraging that, and, if needed, incentives. So I also feel good about Mr. Costa's representation at our meeting last week that the funds that are in the current budget would not be released until this year's event is completed and there are assurances that the organizers are committed to i mplementing the program next year. I would like to encourage the organizers to be proactive about.getting additional funds that show that this is a truly collaborative effort. So thank you for this time. Council Chair Furfaro: Councilmember Kuali`i, I was just informed that before we take a vote on the amendment, you hoped to make a PowerPoint presentation, and I will honor as such. But let me ask if there is any other members before I give the floor to Councilmember Kuali`i? If not, you have the floor, sir. Mr. Kuali`i: Thank you, Mr. Chair. So with regards to the Kauai Marathon and throughout my presentation, I'll just refer to it as TKM. The issue at hand is approving a total of two years of county funding to the Kauai Marathon (TKM), a new struggling private, non -profit that appears to be run by and supported by individuals and businesses from out -of- state. $150,000.00 is proposed and now with an amendment to $100,000 as a money bill, today, for the September 11th, marathon. $120,000 has already been approved as a part of the COUNCIL MEETING -22- May 18, 2011 fiscal year 11 -12 budget with the office of economic development funding and that's for the September 12th marathon. Councilmember Rapozo and I see this as multiple -year funding and we've heard from several citizens. So approving today's... now my presentation was prepared with this $150,000.00 figure, but approving today's $150,000.00 money bill would add to the $120,000 already approved as part of the office of economic development's fiscal year 11 -12 operating budget last week, by bringing the county's funding total to $270,000 for TKM's next two marathons. As Councilmember Rapozo stated before this would be an unprecedented example of multiple -year funding approvals of over $100,000.00 each year to a private non - profit, in fact a new private nonprofit that has no track record other than according to their own financial reports two marathons, their first and second ever with a combined net loss of $352,000. In 2009 their loss was $192,000 and in 2010 it was $159,000. Pulling back after two, not three years, avid runner and TKM founder, owner, and principle funder, Jeff Sacchini of California in his testimony to this council stated he wants to showcase Kaua`i's beauty and goodwill as well as create a positive economic impact for Kauai in these tough times. TKM race director Bob Craver, when it was his turn, stated that Sacchini was not willing to invest his own moneys beyond the first three years. However, the TKM five -year pro forma shows that Sacchini is pulling back all his financial support after only two years, pulling back on even the in -kind services provided by his private bookkeeper and personal assistant. So in this table I just gave you a picture of the numbers, the percentage, the portion of revenues provided over the years, the actual and projected. And so with the financial support from the founder /owner, 46% of the marathon's revenues for the year 2009 was provided by the founder /owner. And the county's share was 4 percent with the $10,000.00 grant. In 2010 it was 36% of the revenue provided by the founder /owner. And the county did not provide any funds that year. So as far as background, Jeff Sacchini is a shareholder of two start -up entities in the food business that sold to Tyson Foods and Smart & Final stores in 1997. He is also the current President of Piranha Produce Incorporated, a wholesaler of packaged fruits and vegetables with over $50 million in annual sales and over 100 employees. He is also the Regional Vice President of FreshPoint, Incorporated, a food distribution company with over $250 million in annual sales and over a thousand employees. So, as can you see, Mr. Sacchini is a very successful business person. Now if he is indicating by his pulling out that he has no confidence in the Kauai Marathon, why should we, on behalf of the tax funders and with taxpayer moneys? Revenue shortages. TKM has failed to maximize and diversify revenue sources thus far. And as a parent by their five -year pro forma lacked the confidence to project any future success at obtaining new or additional funding. Is this because despite numerous efforts TKM has been unable to secure funding sources or is it because TKM is looking instead to depend on our county taxpayers? Is that instead what's meant by making this a signature event for our county? Will TKM keep coming back to the council year after year, threatening to shut down if we don't provide the funding to keep them afloat? So as far as seeing where the funding has come from in this table, so the Kauai Visitors Bureau, Hawaii Visitors Bureau, and HTA portion of revenues, the only funding has come from the Kauai Visitors Bureau for both 2009 -2010, a grant of $25,000 in 2009 and $51,000 in 2010. So that portion of total revenues for KVB and HVB and HTA was 11% in 2009 and the county's share that year with the $10,000 was 4 %. Now in 2010, KVB is 18% of revenues, the county did not give any COUNCIL MEETING -23- May 18, 2011 moneys, that year was zero. And then see what happen the next three years. In 2011, 2012 and 2013, according to TKM's five -year pro forma, no funding projected from any of those sources, KVB, HVB, HTA; no funding projected from anywhere else in the state, whether it be DBEDT or other places. And then now the county is asked to carry the biggest load there, 38% in 2011, 29% in 2012, and 20% in 2013. Perhaps the percentages are going down also because they are projecting, which I hope they are successful in increasing their revenues, having more runners and having that kind of success. So as far as TAT revenues, Chair Furfaro stated his strong disappointment in not seeing the data from TKM on the TAT revenue generated on behalf of the state. Piggybacking on the chair's comments I asked why TKM didn't take that data from 2009 or 2010 to the state to negotiate for even some minimal level of funding from HTA, DBEDT or any other potential state funding source. State Funding. In his testimony to this council, race director Bob Craver stated that while TKM received verbal funding commitments from the state, no amounts materialized into actual dollars. When Councilmember Nakamura asked him if any written proposals were submitted for state funding, he answered no. When she asked if he was working with the HTA Kauai representative, he answered he didn't know who that was. Funding partnerships. Why hasn't TKM created funding partnerships with KVB, HVB, HTA, DBEDT or others? How about with the Kauai Chamber of Commerce and other business associations? I got this information from their website, TKM. It says key partners. So besides the County of Kauai and the Kauai Police Department, the three other key partners presented by TKM are all resort entities, whose support is coming primarily in the form of comp rooms from their vacant rooms inventory. So the figures on sponsorship, which is actual dollars coming from any of the business partners or resort partners, in 2009 11% of the revenues came from those sponsorships and in 2010 16 %, and projected for 2011, 2012 and 2013 is still only 13 %, 15% and 17 %. So they're not, by their pro forma, they're not accelerating their efforts at raising the funding from other sources. And instead, again, for those years, 2011, 2012 and 2013, they are asking the county to provide 38% of their revenues, 29% and 20 %. So when you look at the bottom section of this table, with regards to the total sponsorships, in 2009 that $25,000 is the singular total of funds coming from all sponsors combined, from the different resort associations, from the different businesses, businesses here on Kauai and businesses also not here on Kauai. So on the website, these businesses are actually listed below, the additional support. And I think as Councilmember Yukimura was talking about, most of this support from the local businesses down below is probably in -kind. The other part on sponsorships is on the TKM website, the first thing showing in the sponsors' area highlights, it highlights an ad for Tudal Wine Group, and they are TKM's featured sponsor. The ad goes on to talk about their other wine products and the awards they won. Then it gives information on how to set up tasting appointments or to get more information. I feel strongly that our county should not be a lead sponsor or funder of any event that features the promotion of alcohol use. This goes against everything that our county of Kauai anti -drug program stands for and works on every day. With regards to charitable giving, according to the race director Bob Craver, TKM's direct charity included amounts in the range of $1,000 and $5,000 given to organizations, such as the Kauai Independent Food Bank, as well as grad nights at COUNCIL MEETING -24- May 18, 2011 the different high schools. So the table here shows what portion of the revenues actually goes to direct charitable giving. As you will see, it's fairly low, 6% in 2009, 3.8% in 2010, and then it sort of levels off at that level, 3.7, 3.6, and 3.5 over the next three years. So there isn't even a plan for raising more money for Kaua`i's charities. Then as far as charitable giving continued, on the TKM website, it also states between the three charities, over $400,000 was raised for their respective non - profits by 110 participants. If you would like to help raise funds and join one of these great cause, you can join the 2011 Kauai Marathon at no cost to you, but hard work. Please contact them through the links above. They will be participating while raising funds for research, benefiting their respective charities. And then the three charities are the A -T Children's Project, The Leukemia & Lymphoma Society's Team in Training, and the Giver for Liver from Canada and that raises moneys for the Canadian Liver Foundation. And I got 6.5% or 7.2% runner participation based on 110 participants of the 1681 runners in 2009 or the 1520 runners in 2010. So by the website, I wasn't sure if they were talking about their last year or 2009. But either way, that runner participation in the charitable part of the TKM is extremely low at this point. And being that TKM is set up as a non -profit charity organization, I would expect that these numbers should be much, much higher. And additionally, I would like to see TKM work towards helping raise amounts like that $400,000 for Kaua`i's local charities such as the Kauai United Way, the Kauai Humane Society, and the Kauai Independent Food Bank, instead of the direct charitable givings of only $1,000 or $5,000. The registration fees, it doesn't cover half of the costs associated with the race and the race director stated that they would not be raising the fees because they already charge the highest race fees, also they felt that because of tough economic times. So again, yeah, there are the numbers. As far as what portion of the registration fees actually cover the expenses, in 2009 it was 34 %, in 2010 it was 33 %, and then for 11, 12 and 13, it's going up slightly, 38 %, 43% and 49 %. As far as advertising and marketing, I just wanted to show what portion of the revenue and what portion of the expense the advertising and marketing line item represents. In 2009 the advertising and marketing was 84% of the revenue and 45% of the expenses, and in 2010 56% of the revenue and 36% of the expenses. MJR Media is a Fresno, California company, was the largest line item expense for both years, in 2009 at $124,351 and 2010 at $96,014. And then further detail on the services provided in exchange for those amounts only included website, newsletter and graphic design. One thing I was really concerned about and I asked and I didn't get answers during previous meetings was when they showed us the budget with the projected financials for 2011 and from one meeting to the next, they brought in the following meeting their narrative, if you will, I think they call it a 2011 labor recap, explaining how the expenditure, the labor expenditure of $127,000, how they came to that total. However, when I added it all up, the narrative section, it only came up to $94,000. So I put it all here in this table and so there's still an unaccounted amount of $32,900 on that labor line item, which is one of the largest line items. So TKM, taxes and audited financials. TKM race director Bob Craver stated during his testimony to this council that TKM did not pay any GET taxes for 2009 or 2010 and that they would have a GET liability to account for going forward. On April 6, 2011, when this bill was first introduced for first reading by Councilmember Chang, Councilmember Rapozo had researched and found that TKM had not filed their annual filings and did not have either a certificate of good standing or a tax clearance. Also on April 6, 2011, Councilmember Yukimura asked for an audited statement of TKM's finances of the past events. To this day, TKM COUNCIL MEETING -25- May 18, 2011 has not brought forward documentation proving they're compliant with their GET taxes, nor have they provided any validated financials of the two marathons they've already completed. And that's it. Yeah, I would just say in conclusion that there are many concerns that I have still and that I've heard also from the citizens. And I just do want it to be clear, though, that I do support job creation. I would just like to see us fund organizations that are even directly hiring local people and local businesses to do the job, not just to make the economic impact that supports our businesses. You know, tourists are showing up and drinking coffee at their outlets and eating at their restaurants, which I believe is very important, but I think that TKM should also set the example and hire local people to actually help run the event and support the event instead of having people that fly in from California to actually work an event. And the marketing dollars that went to a media firm in Fresno, which was like 25% of the entire expense for TKM should go to a local company and if we can't find somebody on Kauai, at least in the state of Hawaii. And then again, the thing about maximizing direct charity to local Kauai charities and maximizing charity fundraising, raising for local Kauai charities also. And then the other thing I would suggest is that TKM works closely with our tourism, with Nalani and the office of economic development, and that going forward there's a lot more funding partnerships, and that the county not be asked to be the lead funding partner because I don't think that's our role. I think the economic development is important, but I think it's important in all our industries, you know. So if we can partner with the leaders in the tourism industry so that they play a role, I think that would be better. Maybe going forward that the county could perhaps only commit to being a matching partner and not "the lead partner" with amounts of $25,000 and that be tied to a match. If KVB gives $25,000 and HTA gives $25,000, then we'll give $25,000, so. Those are just my thoughts and I think I still have... financial as far as the finances of it, I still have some serious concerns and I heard one of the citizens make a testimony about if an organization doesn't have tax clearance and isn't complying with general excise taxes, then they should not get county funds and I agree with that. So at this time I still have no choice but to vote no and ask all other councilmembers to consider doing the same for our citizens. Council Chair Furfaro: Thank you, Councilmember Kuali`i for your thorough work and research. It's obvious that you did quite a bit of studying there, but the item that we have now and I would like to move towards a vote is that we have an amendment introduced by Councilwoman Nakamura that reduces the sum to $100,000. And also my confirmation that there will be a budget proviso prepared for the purpose of the administration noting that this council would like to see a memorandum of understanding entered into before the next launch of any funding that's in the 2012 budget. On that note, Mr. Clerk, I would like to go to a vote, as I mentioned earlier and the first item is the amended amount. Mr. Clerk: Council Chair, we're on the floor amendment introduced by Councilmember Nakamura that reduces the funding amount from $150,000 to $100,000. The motion to amend Bill No. 2404, as shown in the Floor Amendment, was then put, and carried by the following vote: FOR PASSAGE: Bynum, Nakamura, Yukimura, Furfaro TOTAL — 4, AGAINST PASSAGE: Kuah'i TOTAL — 1, EXCUSED & NOT VOTING: Rapozo TOTAL —1, RECUSED & NOT VOTING: Chang TOTAL — 1. COUNCIL MEETING -26- May 18, 2011 Mr. Nakamura: Council Chair Furfaro: Four ayes, one no, Mr. Chair. Okay, so shall we move? Ms. Yukimura: Mr. Chair, before we act on the main motion as amended, I just want to say a couple of words. Council Chair Furfaro: I will give you the floor, Vice Chair, go right ahead. Ms. Yukimura: Thank you. I do want to thank Councilmember Kuali`i for a very interesting and well- researched report. I think some of the points raised about directing the charitable benefits to local charities and even some of the purchases for the various needs of the marathon are really well -taken and are items that we should use to make the Kauai Marathon a better event. I hope that Mr. Craver and others will look at this and try to reshape some of the parts of the marathon. I was impressed by the testimony that the Kauai Marathon was really well - organized because I don't like to give county money to something that's not well - organized. And I think the testimony is true in terms of the operations of the day of the event. But it looks like in the areas of financial reporting and so forth, there needs to be some improvements as well. And I believe the section read by Rob as public testimony indicates that some of the control will happen at the economic development office, that there will need to be tax clearances before moneys are released. But as far as tax liabilities for previous events, that is not a county responsibility. It would seem that that would be the responsibility of the main sponsor back then. And I do think Mr. Craver said that that would be taken care of by Mr. Sacchini. And then I think that your PowerPoint, Councilmember Kuali`i, has been very helpful and useful, and I want to thank you for that. Council Chair Furfaro: Thank you, Vice Chair Yukimura. Mr. Bynum, did you have something to add? Mr. Bynum: Yeah, I'll keep it short. This is a public process. I love it. It's great. For the race organizers, you came into the public process, you're going to get this level of scrutiny and I think it's a positive thing. Without going into the details, I appreciate what Councilmember Kuali`i has brought up. But as he noted there was a $35-1,738 loss in the first two years. That loss is borne entirely by this individual who, in his passion, wanted to set up this race for Kauai. Whether he has a loss this year will be determined at the end of the year. I don't know that there might be more contributions from him and it's not something that he set up to make money with because it's set up as a non -profit with public purpose, which means there will always be accountability. But when you get this kind of public process and scrutiny, it has a good outcome. And you are held wholly accountable. So thank you. Council Chair Furfaro: Thank you, Mr. Bynum. If there is no further discussion here, I would like to vote. Excuse me. I would like to call for the vote. You have the floor. Mr. Kuali`i: Chair, I just wanted to thank the councilmembers for their compliments, but I would just say too that I'm just doing my job and doing that level of scrutiny is what the people deserve. I think they deserve nothing less. And I've been hearing from the people, so that's my motivation as well. And I just wanted to say one more thing because in this pro forma, we did see a third year. So there is a third year out there that's going to come back to us. And the number that they put on there was $85,000 and I really want to challenge TKM and challenge us and the Hawaii Visitors Bureau, the Kauai Visitors Bureau, and HTA, for us to COUNCIL MEETING -27- May 18, 2011 move in that direction of making this not something that the county taxpayers have to fund. And if we do it right, and if TKM does it right, then they won't be here next year looking for funding, whether it's in the budget or as a money bill for $85,000. So I challenge TKM and all the supporters, including us, to make sure we can find that $85,000 from many of the various potential other sources. Thank you. Council Chair Furfaro: Thank you. And once again, on behalf of the body, I want to thank you for doing your due diligence and it also is an opportunity with legislators in the body to also signify that now that the TAT is capped, any further investment also benefits the state coffers as any increase in occupancy and average daily rate after our $13.4 million goes to the state coffers. And so the state and the HVB have stepped forward in helping with the shortfall this year. So perhaps that should be on their target range as well for future years, as looking for sponsorship. But again, thank you for your due diligence and on that note, may I call on the vote of the main motion as amended and reduced by $50,000. Mr. Nakamura: Council Chair, we're on the motion to approve Bill No. 2404 as amended. The motion to approve Bill No. 2404, as amended, on second and final reading, was then put, and carried by the following vote: FOR ADOPTION: Bynum, Nakamura, Yukimura, Furfaro TOTAL — 4, AGAINST ADOPTION: Kuah'i TOTAL —1, EXCUSED & NOT VOTING: Rapozo TOTAL —1, RECUSED & NOT VOTING: Chang TOTAL —1. Mr. Nakamura: Four ayes, one no, Mr. Chair. Council Chair Furfaro: Thank you very much. And on that note, I would like to go to our agenda item as we have our legislative team here. And we can again ask Councilmember Chang to return to the group of here. COMMUNICATIONS: (Mr. Chang was noted present.) Mr. Nakamura: Council Chair we're on page 4 of the council's agenda on communication no. 2011 -164. C 2011 -164 Communication (05/12/2011) from Council Chair Furfaro, requesting agenda time for a briefing on the 2011 Legislative Regular Session by the Kauai State Legislative Delegation. Council Chair Furfaro: Thank you very much. And on that note, Eddie, may I ask that you present us with three areas for sitting, and senator, may I welcome you and representatives that are here with us. I do want to indicate that although you are known, you will have to find yourselves introducing yourselves. And will Mr. Crowell be part of your presentation at this point? (Inaudible.) Council Chair Furfaro: We're going to break for lunch after this. I think that's a fair assumption. I thought you were part of the senator's presentation. COUNCIL MEETING -28- May 18, 2011 RONALD KOUCHI, Kauai Senator: Thank you, chair and members. For the record, Ron Kouchi, and since I had a chance to share with you some of the things that happened last week, we thought we would turn it over to Representative Morikawa to tell you what happened in her first session. DAYNETTE MORIKAWA, Kauai Representative: I guess it's still good morning. Council Chair Furfaro: Good morning. Ms. Morikawa: I'm Daynette "Dee" Morikawa. I represent the west side, southwest side of Kauai. And as you know, I am one of the eight freshmen. I am the senior member of the freshman class and I was honored to have been assigned to be Vice Chair for the Health Committee. That's something new for me, so it's taught me a lot just this past session and I look forward to getting back into the community and learn more about these issues. But I'm also a member of the Human Services Committee and the Hawaiian Affairs Committee, and that to me is very dear because I am part - Hawaiian and I have learned a lot about our history just through that committee. I've just been to as many meetings as I possibly could be and I've learned a lot and I look forward to still being the link between the community and government. Thank you. Council Chair Furfaro: Thank you and welcome home. JAMES KUNANE TOKIOKA, Kauai Representative: Good morning, Chair Furfaro, Vice Chair Yukimura, and Members. Thank you very much for having us here. I'm James Kunane Tokioka. I was a part of this group for ten years and I always reflect back at the moments that we've had here with many of the members that I worked with here that has helped me to deal with the issues that we deal with statewide, so thank you for giving me that opportunity here, thank you for the work that you do for the constituents on Kauai. This is my third term in the state house of representatives and I have been honored and privileged to have been doing that. In the six years that I have been there... five years, five sessions that I have been there, the biggest learning experience for us as we go from the county level to the state level is being on the committee on finance. And as Representative Morikawa knows and Kawakami, who's there now, the hours are long. We start many times at 10 o'clock in the morning and we don't leave in many cases until 5 o'clock the next morning, as you folks have done here at times as well. And I know Chairman Kouchi was part of those meetings here while we were here. But as you know, the financial situation of the state is very dire. The issue that you were talking about, chair, with the TAT and the capping, none of us, especially the members from finance or ways and means that especially have served at the county level, wanted to do, but the state is in real tough financial times right now. And I'll give you an example of the scrutiny that the finance committee went with some of the numbers. The East Kauai Water Soil User Group, which many of you know, Jerry Ornellas and that group. They do excellent work out at the system that they have. I think it's a $25 million system that the state used to own. They've taken it over and a lot of the work is on a volunteer basis. But what they do need is some assistance and they, for four years prior to last session, they were getting $50,000 a year from the state to help with maintaining the system. But as frugal people that they are and just conscientious about the money that they were receiving, they came to the legislature two years ago and said, you know, Jimmy, we've been getting this money and we know the state is going through some tough times, so we won't take the money this year because we have some money in the reserves. And said, you know Jerry, I don't know if you want to do that because once you stop the flow, it's not going to be easy to get the moneys back in. So for fiscal years '09 and COUNCIL MEETING -29- May 18, 2011 '10, they weren't receiving those funds. They came back to get it this year. We had to jump through hoops just to get them their $50,000, and Senator Kouchi and Representative Kawakami, whose district that was in, worked really, really hard. Representative Morikawa voted for the number at the end on House Bill 200, but that's the kind of things that we're talking about $50,000, that hours were spent trying to get the moneys in for these groups. So we appreciate your understanding and your working with us, and every single one of you have sent me and I'm sure every one of the delegation emails on issues and we appreciate that because that gives us the sense of what you're concerned about and the constituents that talk to you are concerned about, and we appreciate that. Hopefully we can continue that dialogue. I know for Senator Kouchi, when we talk about county issues, in our positions as for Ron, state senator, and myself as state representative, when we're in meetings, the body at the legislature constantly reminds us that we are no longer councilmembers, we are state legislators. But that's where we came from and I know you will continue to have that dialogue with us and we appreciate that. I'm not sure, senator, if you folks wanted to get into some of the numbers on budget items or some of the projects that have been happening, but I just wanted to touch a little bit on those things and at the direction of you, chair, I'm not sure if members have questions for us about projects or issues, but thank you for the opportunity. Council Chair Furfaro: Well, representative, for all of you as a legislative team, we certainly first of all want to thank you and we recognize how difficult it was at the legislature this period. There were some very interesting issues that came before you. It was very difficult when it came to health and welfare issues, contract negotiations, the upcoming AREC, the retirement reform. These were all very, very big items, especially for people who have been working most of their life and then finding that you were able to draw a line in the sand for the next level of government employees. And whether it was the $50,000 for Jerry Ornellas' group or not, we were able, and I want to thank Senator Kouchi's Office for having the assistant controller over to visit with us, especially on the benefit plans and so forth. But we also realize it must be really tough when they're asking to get reimbursed for the airfare, let alone the $50,000 for the farm workers. So I think it really tells us how much we appreciate your work. We also know that we got part of the trickle -down of these controls. We appreciate the fact that we're capped. We can forecast for the next five years what our TAT cap is. We need to work hard in reinvesting in the destination, so there are additional TAT revenues that go into the state coffers. But we had many programs that were targeted by control at the state level that ended up here in front of us: funding for domestic violence, funding for children's programs, funding for invasive species, funding for health and food, and also, the explanations that we had on the EUTF retirement system. They do have a trickle -down effect and I just have to tell you it's very comforting for us to know that we have people at our political subdivision level that are now at your political subdivision level that understands how those things roll down to us. We're taking a more conservative move going forward, although until we reclassify what is our surplus into an actual reserve, we have heard things on our health and welfare target going forward. It's a big number. We need to make sure that we have that kind of reserve there. We also realize that we're only going to plan on what the cap was, but that any new investment in capital improvements for the county and LEED programs and energy projects and so forth that will help us in the long run, we have to have that reserve to make those kind of investments, so we can reduce operating costs. COUNCIL MEETING -30- May 18, 2011 So I just want to say as chairman of the council, thank you very much. I know it was a difficult session. And we certainly appreciate your work and you always being in touch with us. I know I got several calls from individuals and Mr. Kawakami about how things were progressing and other than just telling you thank you very much, it was greatly appreciated, greatly appreciated, and I know you're going to have a tough session next year as well. The Lieutenant Governor was here earlier today. He gave us an overview of APEC and we'll put our best foot forward here, representing Kauai County and the state. But we know the net results might also help improve the business environment here in the state. So on my behalf, thank you very much. Council Vice Chair Yukimura, did you have anything? Go right ahead, you have the floor. Ms. Yukimura: Thank you. I want to thank the three of you and Representative Kawakami for helping us keep the TAT as part of our budget, a very critical part, and for your advocacy on behalf of Kauai in so many different ways. I feel really good about the team that we have there, and know that you're accessible and responsive and continually speaking on Kaua`i's behalf. So thank you for that. And I have some questions, but I think I want to let others speak first. Council Chair Furfaro: Mr. Bynum, did you want to speak? Mr. Bynum: Sure, you bet. I really appreciate you guys being here today and I think it was definitely a difficult year. I know I paid close attention, and it being very difficult, I think, overall the budget you guys came up with you did a good job. There were some revenue - enhancements, big cuts, very difficult. Some of them I would have liked to have seen gone differently, but hey, I'm not there, you are. But we had a big changeover in our legislative team this year with Senator Kouchi and Kawakami and Dee Dee. And as I looked at this I said, but these are people I know and trust, and I feel good about our team. When I had questions, you're responsive. So I just am not going to ask a lot of questions here today. I'm going to ask a lot when we get together individually. But I just felt really good about our representation and please pass that on to Derek. Thank you. Mr. Kouchi: And I think chair, I just would add that he was cleared on his calendar to be here and obviously with everything that's going on with Big Save Incorporated, his need to be with the rest of his family meeting with all of their employees has taken precedent. He felt it was important to talk to those longtime employees in person. And he just conveyed his regrets that he couldn't be here. Council Chair Furfaro: Thank you for that and it's very much understood. With the announcement we heard today, it's very much understood. Councilmember Nakamura? Councilmember Chang, go ahead. Mr. Chang: I want to thank the delegation for coming over here. You're very, very well- respected and when we talk to people from the Big Island or from Maui or City & County of Honolulu, you folks have a lot of accolades. So I just wanted to say that. And Senator you were here last week and mentioned a little bit about the extension of the road consolidation. I think we're going to be doing that on Saturdays also? Within the Kapa`a area? Mr. Kouchi: The extension of the contraflow. COUNCIL MEETING -31- May 18, 2011 Mr. Chang: Yeah, the contraflow. You're doing that one extra day, I think. But can you just recap that traffic flow from Kapa`a because it just seems to be a big question going on. Mr. Kouchi: Representative Tokioka has been on this for more than a year. I just came and supported his efforts, so I'll have him give you the details. Mr. Chang: Okay and I was going to ask Representative Tokioka if he could tell us about the westbound from Lihu`e, past the community college, so I guess we'll direct both questions to him. Mr. Tokioka: Let me start with the bridge first. I mean the contraflow first. During the previous administration, we tried to work with Director Morioka, who did come down to Kauai and look at the traffic flows. As many of you know who live on the east side, as you're coming towards the bypass from Kapa`a going towards Lihu`e, especially on Saturdays during lunchtime 11 o'clock, sometimes the traffic is backed up all the way to Kedha. And so being raised in that area, I dread going to my parents' house and that was a good thing for me. But the traffic is so bad sometimes it takes 45 minutes, as you know, to go two miles. So anyway, when we looked at the traffic flow, we took some pictures from helicopters to look at where it was backing up and it was backing up at the bypass connector to Kuhi`o Highway. So what the recommendation was for a quick fix is to continue the contraflow from the bypass to Wailua River bridge with two lanes going back towards Lih&e. So with the help of the senate, and you have to have both houses working together to get things done at the legislature, but Senator Kouchi, as soon as he came on we talked about the issue. Director Okimoto at the Department of Transportation came down. He took a look at it. Jadine Urasaki, the deputy director, took a look at it. So what we did was we provisoed in the budget $500,000.00 to do the work on Saturdays, to contraflow the traffic from the bypass to the Wailua bridge, and they have done it on a temporary basis before and it's shown to have worked. But because of the money situation, they weren't able to do it. But it is a special fund, so we are going to be increasing their ceiling to get that project done and contraflowing on the weekends, on Saturdays. In relation to the bridge work here and the four lanes going out towards Representative Morikawa's district, that was a $39 million project, the bridge and the four lanes. The completion date for that, I believe, is in May of 2012. So that's what that is looking at. The bridge work on Wailua, the completion date is this Saturday, I think, is when they're doing the announcement. And of course because of the rain, some of the deadlines were not met. But those were the projects. I think the bridge project was $29 million in Wailua. So prior to us being there, or myself being there, and Senator Kouchi, Morikawa and Kawakami, Representatives Kanoho, Morita, Kawakami and Senator Hooser were working on some of these projects as well. We've approved it over the last four years and when it's all done, it's going to be incredible traffic relief for the people of Kauai. I'm sure the heartache that we're dealing with now is going to be much appreciated. And I know that Councilmember Yukimura especially, and many others, I know Councilmember Furfaro as well when I was here, appreciate the bike path and bike lanes that are going to be going in on that project, so that's just the update on that, Councilmember Chang. Mr. Chang: Thank you. COUNCIL MEETING -32- May 18, 2011 Mr. Kouchi: Well, and the last piece is that there is concern for the long -term safety of the bridge at Lihu`e Mill and so the funding is also there so that the bridge at Liihu`e Mill will also be improved along those Kaumuah'i Highway improvements and that was a concern that DOT has made a high priority, as well, while we're doing all of these improvements in and around Lihu`e. Council Chair Furfaro: Okay, before I recognize Mr. Bynum next, Representative Tokioka, are you folks still looking at a special session after the Revenue Council gets together on May 29th? And is it only the house that's going to go back? Mr. Kouchi: Well, both sides need to go back. Both the house and senate leadership had separate meetings yesterday, but apparently after the Governor was here on Kauai on Friday, he was on Maui on Sunday, he had a cabinet meeting Monday, they've relooked at the Council of Revenue numbers and had a report on how to deal with APEC funding, how to deal with the funding for the claims against the state. They have internal accounts that they can use to meet these funding requests until we reconvene in January, when we can remedy those accounts. It appears that we'll probably not be having a special session of the legislature. I think technically you would call a special session for some of the interim judicial appointments where the senate would have to convene to confirm judges so they'd be seated on the bench. But those sessions are specifically only for the confirmation of judges. And that's the report from the senate. Representative Tokioka can tell you about the house. Mr. Tokioka: I'd like to reflect for the journal the words of the senator from Kauai as if they were my own and that's exactly what happened yesterday. We were both in leadership meetings in the house and senate, and we talked about that. It was very brief and exactly what the senator said is what happened. Council Chair Furfaro: Watching PBS last weekend, there seemed to be some mixture from the senate side if there was going to be a special action and the house side with Speaker Say. So thank you for clarifying that and delivering us the most latest on the coconut wireless. Thank you very much. Mr. Bynum? Mr. Bynum: That's actually good news, right? So thanks. Just to follow up on the traffic issues on the eastside, just to put this in context, and I know you know this, first of all, thanks for that initiative. It just makes sense. We know that Saturday afternoon is really tough for anybody who lives on the eastside and that's our leisure time. That's when we really don't want to spend... and it impacts business because people say I'm not driving into Kapa`a to shop because it'll take me forever to get back home, right? So it makes sense. But the bridge will be completed soon, which will accommodate four lanes. And just for people of Kauai, there's another separate four -lane project that has been delayed by legal issues that eventually it'll be permanent four lanes from the end of the bypass. And so it's just really great that in the interim we're going to look at those Saturdays. Eventually we won't need that contraflow because it will be a permanent solution. So unfortunately that is delayed for us for some time and I don't know if you have any update about whether that project is back on track or not. Mr. Tokioka: Yeah, a slight update. I know when Steve Kyono was the the island manager for the Department of Transportation, they were looking at permanent striping and using that road that goes in the back of Kintaro's along Kapa`a Sands. COUNCIL MEETING _ 33 - - May 18, 2011 Mr. Bynum: Papaloa. Mr. Tokioka: Yeah. They were looking at using that as one of the permanent lanes going eastbound, but because of the bike path some of that changed. Permanent striping for what's contraflowed now is one possibility. They're going to gauge that, Councilmember Bynum, on this flow on the weekends and see if that's something they're going to do for the temporary fix. But yes, as you know, the permanent fix is the widening of that area, which I am not sure if Senator Kouchi has an update. But I'm not sure what that time period is. Mr. Bynum: And just to be clear, what I'm talking about is in front of Coco Palms to the current bypass road that there's a separate four -lane project that will involve undergrounding utilities there and I hope that gets back on track quickly. Mr. Kouchi: They've not yet resolved the cultural issues that are surrounding it, but the money is in the budget. When that comes to resolution, the project can be completed. Also I'd be remiss if I didn't say that Jadine Urasaki who's in charge of the CIP projects for the Department of Transportation in Honolulu has been great in meeting with the Kauai delegation, updating us on all of our road projects. Dee may give you a further report about Koke`e because Jadine has given us those updates. But more importantly, Ray McCormick, who succeeded Steve Kyono, has been wonderful to work with as well. I didn't think it would get better than working with Steve and Ray has been fabulous. His attitude is about how we're going to try and make something work and not why we're not going to be able to do it and even in paying attention to the small things. It was brought to my attention when I became the senator that there has never been a sign with the department of transportation that said Anahola even existed. And in meeting with Ray, we now are going to have, if it hasn't gone up yet, a green DOT highway sign that says Anahola is here and next week they are doing the dedication for the commercial kitchen and some of the fair or farmers market that's out there in Anahola. And they went in, did the striping for the turning lanes and have worked with the Anahola community to try and make sure that people can get in and out of that area safely. And he's been really great to work with. Council Chair Furfaro: Mr. Kouchi: Council Chair Furfaro: sorry. Ms. Morikawa: questions for the westside. Ms. Yukimura: Thank you. Councilmember Kuah'i. I think... Oh, Dee, you wanted to add something? I'm very Yeah, I was going to ask you if anyone had Tell us about the Koke`e Road. Ms. Morikawa: Yeah, Koke`e right now they are starting to do construction on the road and repairing the parking areas. So that's a big thing because we did get funds. And we also did get funding for the raceway track out in Mana. And I think for me, my biggest accomplishment this session was that we did preserve the trout fishing. We were able to get DLNR to purchase the eggs and we can get trout back into the streams. Council Chair Furfaro: Councilmember Kuali`i. COUNCIL MEETING -34- May 18, 2011 Mr. Kouchi: And just on the Koke`e Road, the patching has been done and I noticed there was a letter, but actually I've worked with Representative Morikawa, and we've put the money in so we can reconstruct the road. As we've seen in both the county and the state highways, you get the patching done, it's wonderful. The next big rain comes, the cars run over it, and the potholes reappear. And so there's $14 million over the next three -year cycle for us to help reconstruct the road and make sure that we can get from that park area up to Kalalau lookout in a safe way. And so that's also part of the budget. Council Chair Furfaro: I'm not going to recognize you a third time (referring to Councilmember Kuah'i). Mr. Kuali`i: Aloha and mahalo. Thank you to each of you and to Representative Kawakami as well for everything you do for the people of Kauai. On a personal note, I want to thank you in advance for all the help you'll give me in the next year or so as we work together. Not to get into details, but just to highlight some of the areas that I'm interested in and I'll probably be working with you on is with the parks in general and making sure that we're upkeeping our parks and upgrading them and making sure that our people have these places to enjoy nature and to enjoy the beach. It's our way of life and our entertainment, our free entertainment that nature provides to us. So I think as times get even tougher economically, it's important that we at least have that basic, those places for our people to enjoy, and of course beaches and beach access. And thank you Senator Kouchi for talking about Anahola. I'm not living in Anahola yet, but I'm breaking ground, I'm building my house this next week, and I have family and friends that live there and I've worked there for a while. But one of the concerns of the Anahola Neighborhood is also about how fast people drive through this residential area. With the Anahola Town Center Plan that the community came up with, they have a lot of ideas and vision for how that might change in the future. And I'm sure it'll take working with you along the highway there. They are having the blessing for the kitchen next week, but the kitchen is just a small part of the vision that the community has for that entire area along the highway. And the hope is that one day the highway is even changed in such a way that it's more pedestrian - friendly and safe, and it connects the mauka part of the neighborhood and the makai part of the neighborhood. Right now it's just too dangerous to get across the highway. So I look forward to working with you on that. And then the other thing, and it is on the west side, and it is that I have a special affection for the salt ponds and I'm hoping that I can help build or rebuild a partnership with the county, the state, and the salt- making families, which I'm a part of one of those families, so that we can make sure that we protect this unique cultural activity and place, this very, very special place to our island and to our state and I would say to the world. So going forward, I think we just have to really pull up our sleeves and get together and do what needs to be done to prevent any further deterioration and to make sure that we have this valuable resource for centuries to come. And thank you again so much. Council Chair Furfaro: Thank you. Mr. Kouchi: Chair, I'll just say to Councilmember Kuali'i on the last item, we did have the Senate President and Vice President, along with Senator Dela Cruz visit the salt pond area on the county's inauguration back in December. They took an interest. So Deputy Director of Airports Ford Fuchigami, I made sure he was out and looked at the Salt Pond area. We've talked to William Aila. I've met a young lady from PBS and put her in touch with Kuulei Santos and they're looking COUNCIL MEETING -35- May 18, 2011 at doing a feature on the Salt Pond area to get better acknowledgment and education of the historical and cultural value of Hanapepe Salt Ponds. So we've got quite a few things that we've already been working on. So we would certainly welcome partnering with you as well as we continue to go forward in preserving this treasure. Council Chair Furfaro: Thank you. Now members, we have about 11 minutes before we break for lunch. And both ladies indicated to me that they'll wait, so I'll let them split the balance of the time. Which of the two of you want to go first? There we go, Councilwoman Nakamura. Ms. Nakamura: Thank you. Here I was complaining that I was getting home at 10:30 at night during the budget process, but 5 a.m. is pretty incredible. Thank you all for your great work in supporting the Kauai community. One of the initiatives in our budgeting process that I'm proud of was looking at diversifying our economy by trying to begin implementation of our comprehensive economic development plan for Kauai and I wanted to invite you. We will be working through the Kauai Economic Development Board and the Kauai Planning and Action Alliance to begin the facilitation of seven different industry clusters, varying from diversified ag to health and wellness to sports and recreation and culture and the arts. We want to partner with the state in the process, as we dialogue with all the different stakeholders, to try to begin implementing some of the priority projects in the plan. So I think that's an invitation that we want to extend to our state legislators because there are state programs within the DBEDT that hopefully we might be able to collaborate with. So I just wanted to put that out there and we really didn't hear too much about the Hawaii Health Systems Corporation at the local level here and it's such a huge employer and provides an important service to our community, so I was just wondering if there was anything you wanted to tell us about the funding of that organization? Mr. Tokioka: DBEDT? Councilmember, of DBEDT? Ms. Nakamura: Excuse me, for the Hawaii Health Systems Corporation, KVMH and Mahelona. Mr. Tokioka: Well, over the past years, Governor Lingle has, as recently as last year, put in an emergency appropriations for $75 million to keep that network running. As you know, it is the safety net for the health system statewide. What sometimes people don't realize on Kauai is we have three hospitals on Kauai. On Maui they have one and Maui is twice as big as Kauai. So a lot has been looked at, the different hospitals, KVMH and Mahelona, and how to better utilize that for the community. Right now, there are no big changes planned, but they do have a new executive director which started at the end of session. So he came on, I think in the beginning of May and so whatever plans the board may have going forward and the new director may have going forward, we're not sure of. But if something does come up, we'll let you know. They haven't come back in this year for any additional emergency appropriations. But that's about all I know right now, Councilmember Nakamura, to update you on that. Ms. Morikawa: The new executive director is Bruce Anderson and he has history there. I think we just have to give him time because he did come and speak to us and he does know that we stress efficiency and let's just give him a chance. But I really feel that we're in a good place with him. Thanks. COUNCIL MEETING -36- May 18, 2011 Mr. Kouchi: And then I'll be at my capital office tomorrow. I don't recall the date off the top of my head, but I'll get an email out. I've had an opportunity to meet with Richard Lim, the Director of the Department of Business and Economic Development and Tourism. It happened to be when Mayors Kenoi and Carvalho were up lobbying to preserve the TAT. So I brought him into a meeting with the two of them and we are scheduled to have DBEDT coming out to Kauai, I believe, within the first week or first two weeks of June and they want to meet with the county officials. They'd like to meet with KEDB, KVB and avail themselves or make themselves available to see what they can do to partner. As you can imagine, in the constraints of the budget there's limited funds for what they can actually do. So they'd like to be a resource to the community and find out what is the community looking at and how can they best now go about assisting, making those projects happen? Certainly in talking with Richard Lim, he recognizes that renewable energy is a real big opportunity for us here in Hawaii.- We've had a discussion with the mayors in front of the joint finance and ways and means committee about upgrading our broadband capability. I think we were one of the tops in the nation at the start of the millennium and now we're at the very bottom as far as our capability and if we do want to foster that kind of economic development and those opportunities, clearly we need to have expanded broadband capability in this current environment. And so he's committed to working in those two areas. And I know Mayor Carvalho and Mayor Kenoi committed to make their staffs available and welcome the opportunity to partner with DBEDT. So actually, that's a good reminder and I'll get the e -mail out tomorrow. The other thing I should say HSAC did have a bill pass this session and we were able in this session to get that higher standard of penalty if there is an attack against a lifeguard or firefighters. That was part of the HSAC package. So that also was successful this past session. Council Chair Furfaro: Thank you for that. We just had HSAC here at Kauai County on Friday for an update and I was able to sit through that meeting. Mr. Tokioka: Chair, can I respond to Councilmember Kuah'i's, one of his comments. Council Chair Furfaro: Go right ahead and then we'll go to Councilwoman Yukimura. Mr. Tokioka: Okay. Councilmember Kuali`i, just an update, at the Kauai Community Correctional facility, as you know, we've had many accidents in that area and you were talking about the safety of the Anahola area and making it more pedestrian- friendly. But in that Wailua corridor, we put in moneys three years ago to intersect the golf course entrance and the correctional facility's entrance because as you know many times people are turning in on one side or the other and it's very dangerous in that area. Two years ago we also reduced the speed limit from 50 to 40. So those are some of the types of traffic calming devices that we were alerted to and progressed on in that specific area. Ray McCormick called me yesterday and as Senator Kouchi said he has been doing an incredible job for everyone on Kauai. And he and said that money for that connection, for the intersection at Wailua Golf Course, is going to be starting within the next few months. So those are one of the types of things and I'm sure, as you know, former Councilmember Kawakami would love to work with you on similar things in the Anahola area because we know how hard it is for people to cross that area because of the speed. Cars are traveling very fast and there are a lot of blind sections in that area. COUNCIL MEETING -37- May 18, 2011 Two other things, I know Representative Kawakami called me this morning and just an update on one of the CIP projects that he has in his district was the library at Kapa`a Elementary School, which for those of you who were at the chamber luncheon —I think many of you were there — Governor Abercrombie said in his speech that two of the projects he mentioned was the Kapa`a Elementary School Library, which is a $6 million project, and the gym at Kauai High School, which for the last five years we've been trying get put in the budget. It was in the budget before, it was never released. But he committed to releasing the money for the gym and as many of you know all three gyms on the island are over 80 years old. So it's about time we start looking at renovating or rebuilding those gyms because they just need to be rebuilt for the future of our children. So thank you, Chair, for that opportunity. Council Chair Furfaro: Council Vice Chair Yukimura, you have the floor. Ms. Yukimura: Yes, thank you. Just in relation to what's already been said, I really want to thank you all and the governor for the repairs to K6ke`e Road, which have been so badly needed and I want to acknowledge the governor's actually kept his promise that he made in the campaign. And I'm so pleased that the moneys are going to be released, not only in K6ke`e, but also for the library and the gym because the jobs are really what we need right now, construction jobs, and that's just going to be a wonderful thing. My question is on the upcoming session, you just finished the session, I'd like to know how we can prepare with you for the next session? And there are several things that are of concern to me. One is the low - hanging fruit for energy efficiency and conservation on Kauai is solar water heating on all our residences. And I know the legislature passed a bill, but there's a big exemption loophole that needs to be closed. So we would like to ask to be able to work with you on that. And that would really ensure that any new construction of residences will have solar water heating. And then there are some legal challenges with the .PACE bill that would apply to retrofits of solar water heating and we'd like to see if we can work with you on that, although I think there's a bill just to be introduced in congress that will help to open the field in that area. And then there's the issue of state ag lands and how they're being used and especially how we can tie them to our primary goals of producing food and energy, and ag, actually lands and water. And there are many other issues. If there are ways you can advise us and guide us in terms of how we can work with you before the next session to prepare some of these things, we would really appreciate it. Mr. Kouchi: And it's whether you think we would be invited to a committee meeting or if there is a separate workshop, we would be happy to work to schedule that. Ms. Yukimura: Thank you. Mr. Kouchi: One of the issues that came up at the leadership meet for the senate side is the president is encouraging the ways and means committee to go out and do some assessments in the interim to come up with the priorities for next session and has indicated that certain subject matter committees may want to tie in a visit by going when ways and means is there. I did have a chance yesterday to talk to Senator Nishihara who's the ag committee chair and he is interested in coming to Kauai. They were able to go to the Big Island during one of the recess days with the ag committee, as well as the water/land committee. They also went on two of the recess days to tour some of the ag operations on Oahu. So he found it to be very useful, but I'm just happy to have supported Senate COUNCIL MEETING -38- May 18, 2011 President Tsutsui from Maui. Having a neighbor island president has made it very easy to have understanding about why the committee needs to get off of the island of Oahu, get out to the other islands and see what's going on and what's being done. So certainly if those visits do come to fruition, we would extend the invitation for the council to participate with the ways and means committee and other committees that may be there, and then as I said, the DBEDT meeting, that's upcoming. So I would see that as several different ways to get some input and participate. Ms. Yukimura: Thank you and one request from our side is please don't schedule it for a Wednesday. Mr. Kouchi: I'm aware of the meeting day. Ms. Yukimura: I mean we have had visits before where we really wanted to participate and it's been virtually impossible. So thank you. Council Chair Furfaro: On that note, to the legislative team, I need to just say thank you very much for all your continued fine representation of the issues that are pertinent to our community, and I need to let the public give testimony as you are well aware of because this was an agendaed item, although we won't direct any questions to you, and I will limit them to three minutes because we have a public hearing at 1:30 p.m. But a big mahalo to you and for all your fine work. Thank you for being here and we'll continue to just stay in constant communication with you. Mr. Kouchi: I think my parting comment is we'll read Leo's article. But in trying to maximize our time when we can be together, AARP had extended an invitation and request to meet with us at 12:30 today. So we're now going to leave here and go and meet with the AARP. Janice Bond has coordinated a meeting with all of us. So we thank you for the time and if you need us back, just send an email or make a phone call. We'll be happy to come back. Council Chair Furfaro: Have a successful meeting with AARP. Thank you. Is there anyone in the public who wants to speak? I'll be limiting you to three minutes as we break for lunch. Members, we're going to continue to take testimony. I need four at the table. Members, I need four at the table. Glenn, I'm extending you three minutes. Thank you, Dee Dee. GLENN MICKENS: Thank you, Jay, for the record Glenn Mickens. Briefly, I know it's lunchtime, I wanted to thank the legislators too for coming over here and being able to brief us on what the state can help us with or can't help us with. The one added lane that Tim talked about from Coco Palms up to the bypass road. It's about 1/8 or a quarter of a mile, I guess. I've asked this question to Ray McCormick, who is really, really a good guy. You can talk to him. He's informational, for the public. I really appreciate his being our director now of the highways. Anyway, I want to know how that one lane is going to cost us $29 million for adding that one lane from Coco Palms up to the bypass. I know there's a lot of underground stuff and everything that's going to be responsible for that thing, but how is that lane, it's going to go up to the bypass road, now you're going to go back down to three lanes, now you're going to go back down to two lanes going through Kapa`a, so how is that one lane going to really alleviate any traffic? I don't really understand that for the $29 million that they're going to spend for it. It just doesn't make sense to me. And they're going to (inaudible) putting a signal up at Kintaro's Restaurant, another signal. Now you're going to have three signals, one there, one at Haleilio Road, one at Kuamoo Road. You're going to have three signals there within an 1/8 or a quarter of a mile. Those signals stack traffic up more than any COUNCIL MEETING -39- May 18, 2011 other thing. You could put a 10 -lane thing there. If you put a signal there, you're going to stop the cars from running. So I don't understand the rationale. And then going through Kapa`a, they've got that nightmare there with coming out of Safeway. They've got that 200 -foot lane. You guys have all come out of Safeway I presume. They've got that little 200 -foot lane maybe. Half the time the traffic's backed up. They pull into that lane, now they got to merge back, the cars coming through Kapa`a still have to merge to get in that lane because the traffic is moving. Then they move back into the other lane merging, which just keeps backing traffic up. Anyway, I didn't know whether Jimmy — they've gone but Jimmy brought these things up and I just wonder what can they do to alleviate it? I don't know who granted that big condos there. Who granted them that permission to put that little one lane up there that does nothing for the traffic? But I just wonder what can be done to alleviate it? But anyway, I do appreciate Jimmy brought these things up and Tim brought up about the one lane for that $29 million. Council Chair Furfaro: I would suggest that you send Mr. Bynum an email and I'm sure he can recompose it from his committee to them. But I can't speak for the rest of the body. Mr. Mickens: That is Jimmy's kuleana I presume, right? Council Chair Furfaro: That's right. Mr. Mickens: Okay, thank you, Jay. Council Chair Furfaro: Is there anyone else before we break for lunch? If not, members, it is 12:37 p.m. We will be back at 1:37 p.m. for public hearing, which will be in public safety, and you are the vice chair, Mr. Chang. So that'll be your public meeting. Mr. Chang: Thank you. There being no objection, the meeting was recessed at 12:37. The meeting was called back to order at 1:42 p.m., and proceeded as follows: Council Chair Furfaro: For those in the audience, we're back to page 1. Mr. Clerk, I would like to take item 143 that deals with Act 68 as the first item. Mr. Nakamura: Mr. Chair, we're on page 1 of the council's agenda, on communication C 2011 -143. C 2011 -143 Communication (04/15/2011) from Councilmember Bynum, requesting the Administration's presence to discuss the implementation of Act 68 of the 2010 legislative session (Chapter 103B, Haw. Rev. Stat.), which requires that Hawaii residents compose 80% of the workforce employed to perform government construction contracts, and to describe the steps taken by the County to ensure compliance with Chapter 103B, Haw. Rev. Stat.: Ms. Nakamura moved to receive C 2011 -143 for the record, seconded by Mr. Chang. Council Chair Furfaro: Thank you. We have a motion to receive and a second. On that note, Councilman Bynum, this is your communique. I'm going to let you orchestrate this communication. COUNCIL MEETING -40- May 18, 2011 Mr. Bynum: This communication and the next one I don't want to take too much time with, but it has to do with something we ironically were talking about earlier today, which is trying to get funds that come into the state employing our local workforce, which is very important. And so the legislature last year passed Act 68. The legislature had to override a veto to get this bill into place, which said for government work 80% of the workforce needs to be local, people living in the State of Hawaii. And so that applies to the County of Kauai, so we have Mr. Barreira here from our purchasing division. I asked him if he would just give us a brief overview of what the law is and how the county has moved to ensure compliance in the contracts that we put out. There being no objection, the rules were suspended. ERNEST BARREIRA, Assistant Chief Procurement Officer: Good afternoon and thank you, Councilmember Bynum, Honorable Chair, Members of the Council, Ernie Barreira, Assistant Chief Procurement Officer for the County of Kauai. Thank you for the invitation to be present today to speak as to the issues pertinent with Act 68. As you noted accurately it was passed by the Hawaii State Legislature last year. There were some interesting developments with the act having been promulgated. The first thing, as you noted, is that while it makes routine reference to the state procurement code under HRS 103D, they did not promulgate the law under that chapter. Instead they created a new chapter HRS 103 "B" as in baby. Because that was the decision by the state legislature, the state procurement office, which normally takes responsibility for the implementation of new laws pertinent to the procurement code did not have any legal jurisdiction to facilitate guidance and implementation assistance that would normally occur. It caught us in almost a Catch -22 situation. In addition to that, for some reason, and I cannot speak for the state comptroller, but at the time the state comptroller did not issue an implementation memoranda as well. So the counties were then forced to seek implementation of this state law without centralized state guidance that would normally occur. Part of the problem with that is without implementation being facilitated by either the state procurement office or the state comptroller, there were no administrative rules developed and we all know how the law works. The statute defines the obligations and the administrative rules define the implementation that needs to occur and provides us at the county level in particular and also at the state level, particularly the executive and judicial branches, with guidance and instructions as to how we should proceed. It also protects us from liability, to make sure that we're doing what the law had intended. So that was a concern. The lack of coordination, actually, left us in a situation where we were uncertain who was responsible for the law and who ultimately would have the authority to dictate the terms and conditions by which the law would be implemented. Now, upon my appointment, shortly thereafter I became aware of Act 68. There were tremendous rumblings in the community about the constitutionality of the law because it is focused on residency requirements for the State of Hawaii. Because of that, our due diligence mandated that the matter be referred to the county attorney for a complete review. As recently as three weeks ago, one of our county attorneys contacted me and informed me that the most likely entity that would likely file a constitutional challenge with this law was the American Civil Liberties Union and information was received that they were not going to seek such a challenge. And at that point it seemed clear, after all of our due diligence and concerns, that we were safe in seeking implementation of the law. All four counties have implemented Act 68. All four counties have slightly different versions of the implementation. We did so in the absence of administrative rules. I am comfortable that adequate due diligence was exercised so that the law is in place. We will enforce the law. COUNCIL MEETING -41- May 18, 2011 With regard to solicitations that will be impacted by these acts, we have made an administrative decision to issue addenda for those three or four solicitations that are currently pending bid receipt and we are going to inform all contractors and all bidders that the law applies and they can apply the preferences as the law does require. So we expect close adherence to the acts and that will be part of our formal review and tabulation. If there is noncompliance, the bids may not only be considered unresponsive, but there are consequences as you are aware having reviewed the statute that are defined within the law. Council Chair Furfaro: Mr. Bynum, I'm allowing to you run this meeting. Mr. Bynum: Okay, anybody have any questions for Ernie before I do? Councilmember Yukimura. Ms. Yukimura: Yes, hi, thank you, Mr. Barreira, for being here. So you said all four counties have an implementation plan or what did you call it? Regulation? Mr. Barreira: It is an implementation memo that essentially conveys the content of the law, as well as policy and procedural descriptions as needed for the employees to adhere to the law, and any attachments that are pertinent. In the case of Act 68, we do have a certification form that has to be completed every month by the contractor and submitted to the county to ensure that they are complying. Ms. Yukimura: Is that something you can make available to us or is it a huge packet? Mr. Barreira: I sent it to all of you yesterday actually and to all county agencies. Ms. Yukimura: Oh, okay, I saw that on the computer. Okay, thank you. Mr. Barreira: You're welcome. Mr. Bynum: Other questions? Council Chair Furfaro: I have one. Mr. Bynum: Chair Furfaro. Council Chair Furfaro: So this implementation memorandum, we have, sent to us electronically? Mr. Barreira: Yes. Council Chair Furfaro: Does this review the components that you visit or review their performance and their obligations monthly? Mr. Barreira: Yes, that is contained within the statute itself, the legislation, as well as in the memoranda that I provided to the county agencies. Council Chair Furfaro: I appreciate you taking on that task, but so how do you do that monthly? COUNCIL MEETING -42- May 18, 2011 Mr. Barreira: The project directors, the Doug Haighs of the world, the Bill Trujillos of the world, would be responsible to ensure that every month the contractor provides and submits the certification requirements that has to be notarized incidentally. So it is a once a month obligation that the county is responsible to enforce. Council Chair Furfaro: So the document gets notarized. How about other things like signatory POS of the employees, specimen signatures, union cards? I mean what other components are there? Mr. Barreira: Actually, Chair, that's a very good point and a good question. If you look at the definitions contained within the statute, the functional definition of "resident" is very, very broad. I believe it makes reference to if you intend to make Hawaii your domicile. I don't know what that means in particular, but I know what it doesn't mean. It doesn't mean that you have to show evidence of paid Hawaii state taxes for a given time. It doesn't mean you have to show proof of residency by owning or renting a property. I imagine in the broadest concept it would mean that if you're from Arkansas and wish to come and work for Unlimited Construction, for example, and you commit to this as your domicile for the period of the construction, I think it constitutes compliance with that law. Council Chair Furfaro: Okay, so you've clarified mine. The process of checking and so forth seems to be very weak. Mr. Barreira: Yes, sir. Council Chair Furfaro: Okay, there's no requirement as residency as it relates to registering to vote, for example. Mr. Barreira: No, it does not. Council Chair Furfaro: Nothing. Mr. Barreira: And one of the problems, Chair, with that is in the 25 years that I've worked for government, in all of those 25 years when the Hawaii State Legislature has promulgated a new statute that requires implementation at the county and state levels, we've asked for a deference of time to give us time to develop policies and procedures and to train and prepare the staff to implement the law effectively. And in 25 years that's happened very infrequently. So some of that is the challenges that we face and no criticism intended for our leaders at the legislature. They're faced with their own schedules. But it does make it more difficult for us to do a good job in implementing the law. Council Chair Furfaro: Okay, so basically I appreciate the extra work that you've taken on, but under those conditions, it seems that there's not enough bite in the state regulations that would give us good documentation. So it's kind of like to the best of our ability. Mr. Barreira: Yes, and that's essentially what the certification will do. Council Chair Furfaro: Mr. Bynum, thank you. COUNCIL MEETING -43- May 18, 2011 Mr. Bynum: Okay, so I do want to acknowledge and appreciate that we moved proactively. When I asked the questions, you had answers, which is great, because sometimes with something like this it just kind of flies under the radar and so I appreciate that being proactive. I also see that the definition of 80% has to do with hours and that's really important in terms of compliance. You look at the hours and not the number of bodies because somebody can have a sub that works one day, and say, well that was a Hawaii resident. I thought that was important. I've also seen the DAGS memos to implement on the state level and it's similar where they want to know the total number of hours and then the hours that were from local residents. And so I think this is government money and it's in the public interest to have a local workforce employed on these projects. I understand that there might be legal challenges, but thus far there haven't been. So I'm glad that we have this law and it's being implemented. If I understood you correctly, Ernie, the contracts that are currently out, you're going to do an addendum to? Mr. Barreira: Not for matters that have already been contracted. Matters that are pending bid submissions that are on the shelf. Mr. Bynum: Okay, and then I would just encourage those contractors who have contracts already to abide by the spirit of the law and look at employing our local workforce, particularly in a time when there are a bunch of individuals on the bench who aren't working. Mr. Barreira: There's one functional caveat in the law of course, and that is where federal funding might be jeopardized, the law does not apply, and that applies to 68, and it's interesting. I think there was some discussion of whether the counties needed to consolidate their efforts and see if we should work with the federal agencies to see if it that applies. But at this point, in the letter of the law, federal - funded programs are not bound by Act 68. Mr. Bynum: And my final question is as this rolls out and we see how it's working, if there's changes that are required to assure that we're getting some level of actual compliance, that's something you can work on as well? Mr. Barreira: Say again, I'm sorry, councilmember. Mr. Bynum: As you're rolling this out and if we don't really feel our managers are really getting the information that we need, we can tweak it in terms of how they demonstrate components. Mr. Barreira: Yes. As far as the implementation is concerned, we have full jurisdiction on how we want to convey additional requirements. That is true. Mr. Bynum: Okay, I appreciate you coming and just explaining this, what I think is an important law and it has to do with government projects or county projects. Mr. Barreira: Yes. Council Chair Furfaro: I have one. Mr. Bynum: Council Chair Furfaro. COUNCIL MEETING -44- May 18, 2011 Council Chair Furfaro: So but as we spea k within terminology as the fulltime equivalent, there being 80% of the fulltime equivalent? For example, work. That is an equivalent of five members of the law, four of them need to be Hawaii residents. Mr. Barreira: Yes. right now, what we know is nothing that references it this project has 200 hours of workforce. To comply to the Council Chair Furfaro: It's not even defined that well? Mr. Barreira: Other than what Councilmember Bynum just articulated and then you couple that with the broad definition of "residents" with regard to the domicile issue, if it came down to a challenge, I'm not sure how it would be ultimately interpreted. I'm just thankful that we have a county attorney that we can turn to in the event there are questions that arise. It's going to be subject to some significant legal interpretation. Council Chair Furfaro: Okay, but at this point someone could employ ten 20 -hour a workweek employees, and what test do you comply against that to get the 200 hours? What test is there for you in purchasing? Mr. Barreira: Actually, the test really is for the project manager. Ultimately that is where the accountability lies, but your question is appreciated in that how are they going to do it and we're probably going to have to consult when questions arise and maybe seek legal clarification if that becomes necessary. Council Chair Furfaro: Thank you, Mr. Bynum. Mr. Bynum: And my point was just it's by hours. It says you have 200 hours, 80% of those hours need to be worked by local residents. Mr. Barreira: Yes, that is correct. Council Chair Furfaro: But you saw my point too, Mr. Bynum? A contractor can then hire everybody part -time under that definition. Mr. Barreira: I believe the law would not restrict that activity. Yes, sir. Council Chair Furfaro: Thank you. I just wanted to get my point across. Mr. Bynum: And my last point, the reason I brought that up is that I've seen this kind of analysis before where people say, hey, 70% of our workforce is local residents, but it turns out all the fulltime guys aren't and they're counting the subs that may have been on site for only a day or two, right? So I like the way you chose to do it in terms of focusing on hours rather than bodies. Mr. Barreira: When we looked at this law, I was curious and I went back and looked at several of the construction bids that had been submitted, and the overwhelming majority for government- funded projects, of course, contained not only a local general contractor but local subs as well. So I'm hoping that the spirit of the law is already in place. But I know there are nightmare examples that I'm sure people could share where that did not occur. So we are happy to hold ourselves accountable in making sure that we carry out the intent of this legislation. COUNCIL MEETING -45- May 18, 2011 Mr. Bynum: Thank you very much, Ernie. Mr. Barreira: Thank you for your time. Council Chair Furfaro: So, did you want to move to receive on this item? Mr. Bynum: Yeah, public comment. Well we have a motion. Council Chair Furfaro: I'm giving you the meeting. Mr. Bynum: I'm done. Council Chair Furfaro: You're done? Oh, you want to turn it back to me? Then, fine. Is there anyone in the public that wishes to speak? Gentlemen, come up. GLENN MICKENS: Thank you, Jay, for the record, Glenn Mickens. I just want to compliment Ernie. I thought that was one of the finest dialogues I've heard coming from the administration. I thought it was clear, concise, easy to understand. I really appreciate it. I'm sorry, as Jay said, that this law doesn't have any real teeth in it. It sounds like there is a lot of leeway to be able to get around the intent of the law, the 80% part. But it's too bad. But Ernie did a great job. Thank you. Mr. Bynum: Glenn, just let me comment. The law does potentially have some teeth. The weak part is kind of the compliance side. But if there's a clear violation, there is some consequence. Mr. Mickens: I guess Ernie did say that somebody like Doug Haigh, they're responsible for getting a notary - signed thing to make sure that they are the enforcement mechanism. Mr. Bynum: Whoever the project manager is. We have a number of project managers in the county, so. Mr. Mickens: Yeah, I was just echoing Jay's statement that there are ways of getting around what the law actually states and I thought that was...I don't know how it can be tightened, but I do appreciate that. Thank you. Council Chair Furfaro: Thank you, Glenn. Ken, please come right up. KEN TAYLOR: Chair and Members of Council, my name is Ken Taylor. I too want to thank Ernie for a well- presented presentation and being able to answer questions that were raised. In the latter part of his comments he raised one of the concerns I had was in reference to when federal moneys were involved and that's been cleared up. That's good. But the other part of this whole scenario needs to be looked at is that I used the example of a couple of years ago when all the projects out in Po`ipu were approved. If they would have all gone forward shortly after approval, it would have more than required county employee ... the numbers of workers that we had available here on island, which would force people to bring in others. And if the government at that same moment came forward with projects, then that would even complicate the issue more so. So I think somehow in the process we need to look at when and how we move these projects forward so that we are, indeed, employing local workers and not setting up a situation where there is no way in the world a general contractor could move forward with a project because he can't get adequate employment from the local COUNCIL MEETING -46- May 18, 2011 workforce. So there has to be some mechanism in the decision - making process as to when do you move forward with some of these projects. I mean if everybody in the construction industry is working today and the county puts out a big project to move forward with, that creates a problem. And so, I'm not quite sure how you deal with those kinds of things, but I think they're issues that need to be brought back for discussion in the future so that we are able to space out projects so that we keep the workforce locally busy constantly. Thank you. Council Chair Furfaro: Thank you, Ken. Is there anyone else who would like to speak in the audience on this one? If not, just for your general information, the next item, 144, deals with the planning department's project approval process as it's interacting with this. And then for the audience, your general information, I will be following the sequence on the peddlers and concessionaire bill after we finish this work on 144. So do I have a county clerk that can read 144 when we're getting up to bat next? Is there any further discussion on 143? If not, I will call the meeting back to order. There being no one else wishing to testify on this matter, the meeting was called back to order, and proceeded as follows: Council Chair Furfaro: Any further discussion? If not, all those in favor on this motion to receive? The motion to receive C 2011 -143 for the record was then put, and unanimously carried. Council Chair Furfaro: Thank you very much. Can we go to 144, please? Mr. Nakamura: Council Chair, we're on page 1 of the council's agenda, communication C 2011 -144. C 2011 -144 Communication (04/18/2011) from Councilmember Bynum, requesting agenda time for the Administration to discuss the imposition and enforcement of conditions relating to the employment of Hawaii residents on projects approved by the Planning Department or Planning Commission. Council Chair Furfaro: Thank you very much. Mr. Bynum, I'm going to extend you a courtesy again since this was your communication, and when we get to decision making I'll take it back. Mr. Bynum: Okay, thank you very much. Again, this is a related item. First we were talking about projects where government money is being expended and my own view is that that's our citizens' dollars and to put conditions in that benefit the community at -large and the workforce is reasonable. Although I think we have that goal also in the private sector, those permits come under the planning department and for some recent things that have happened on Kauai the last couple of years, I became interested in, for lots of reasons, the whole planning process, building permits and conditions. And so I want to read a condition from a recent building permit or a portion of it which is I think in most of our large private sector projects. It says "to the extent possible within the confines of union requirements and applicable legal prohibitions against discrimination in employment, the applicant shall seek to hire Kauai contractors as long as they are qualified and reasonably competitive with other contractors and shall seek to employ residents of Kauai in temporary construction or permanent resort - related jobs." This happened to be for a resort - related job that's why it said resort. I won't read the rest of the condition, but this I think is our planning department's attempt COUNCIL MEETING -47- May 18, 2011 when developers are before us to say we really want to strongly encourage that you employ a local workforce. And so I wanted planning to answer some questions for us today about this condition which is common because I had complaints from people in the community who said, hey, we got people unemployed at a high level in the trades and I'm meeting these construction workers that came from the mainland and are all being housed in a ... five or six individuals in a condominium. What's up with that? I thought we had this condition, right? And so that's part of the reason for this. Council Chair Furfaro: Mr. Jung, would you hold on for a second so I can suspend the rules and give the meeting back to Mr. Bynum. You wanted the county attorney and planning together? Mr. Bynum: I asked planning to come, but that's who came, so. Council Chair Furfaro: Okay. Mr. Bynum: And I know this is our attorney assigned to planning, so. Ms. Nakamura: Council Chair Furfaro: Mr. Chang: Move to receive. May I have a second? Second. Ms. Nakamura moved to receive C 2011 -144 for the record, seconded by Mr. Chang. There being no objection, the rules were suspended. Council Chair Furfaro: Thank you very much. Mr. Bynum: So, Mr. Crowell, Mr. Jung, thanks for being here today. I was hoping you could just give an overview of this requirement or this condition, say how it's used, and really does it have any legal force or is it just a big request, and how does that come down at the planning department when an applicant is before the planning department? IAN JUNG, Deputy County Attorney: Deputy County Attorney Ian Jung for the record. Good afternoon, Council Chair and Councilmembers. When you look at conditions and whether or not to impose conditions, the intent of conditions are to mitigate impacts that developments will have. So when you look at when conditions can be imposed it's to affect the use of the land and not necessarily how things are going to be constructed. So when applicants represent that they'll use a local workforce, sometimes the commission will just put a non - binding condition in there suggesting that they hire local contractors. But the key is it's an encouragement and the reference in that particular condition you read was to seek to employ. So we advise the commissioners that you cannot make mandatory conditions to that effect. And if the applicant wants to represent that they'll hire local contractors, they certainly can and the commission can impose a suggesting condition to do that, but we would not make it mandatory that they do do that. COUNCIL MEETING -48- May 18, 2011 Mr. Bynum: Okay, so in this particular one because some of the J who brought this to my attention say, it says "shall," and we all know in the legal world "shall" is supposed to be very hard and it's like not optional. But this says "shall seek to hire," so it kind of gets qualified by the next thing. So the answer is we can't impose this condition as a requirement, right? Mr. Jung: We can't make it mandatory because it doesn't affect the use of the land. It affects something that's going to be constructed on the land. Mr. Bynum: So we can't make it mandatory, but when an applicant is before our county commission, that's the time that we can dialogue with them about their intentions as well. Is that correct? Mr. Jung: That has happened in the past, yes. Mr. Bynum: Okay. So does this ever get dialogue or discussion amongst commissioners? Is there ever a discussion about this? Is there an attempt to say to the contractor, do you intend to do this and put them kind of on the public record, so to speak? DEE CROWELL, Deputy Planning Director: Dee Crowell, Deputy Planning Director. This issue of hiring locals is not new. The condition you were reading from was from a permit issued in 2007. But even as far back as well, that I can remember is the `90s, when the planning commission had some union representation and that representative tried hard to impose a condition that they shall hire local contractors. We were advised by our attorneys at that time that such a condition would be illegal and unconstitutional. So to my knowledge, that position hasn't changed and from the looks of the 2007 condition, that appears to be right. So we appear to be going on that same track. Mr. Bynum: So it's similar to the second condition in this one that says, the applicant shall consider LEED standards. It's kind of an encouragement, a strong encouragement, right? And I think that was important for some people in the community to know that if it's county money, maybe we can impose those kind of conditions, but if it's private money, we can strongly encourage and the accountability is going to come from the statements that contractors make and whether they follow through or not, and also from the sentiment of the community. Hopefully people who develop on Kauai are concerned about the sentiment of the community as well. Have I got that right? Mr. Crowell: Yes. Mr. Bynum: Is there anything else the two of you would like to add? Are there questions from other councilmembers? Councilmember Furfaro. Council Chair Furfaro: Yes. You know, Dee, when I was on the planning commission, and I was the at -large representative, that's ten years ago, we had discussion about things that dealt with the objectivity of these conditions versus the subjectivity. But have we not gone anywhere with the legal department on saying ... I wouldn't go as far as saying union or nonunion, but I would say comparing prevailing wages, for example, when somebody bids on a project. We would like to see some objectivity and a range for carpenters and plumbers as this contributes to the overall economy. And obviously, when they have to file for their building permit, they have to disclose the net cost of the project. But have we gone any further in some of that reasonable competitiveness as far as what our COUNCIL MEETING -49- May 18, 2011 expectations are on objective things like wage, benefits? Has there been any more discussion so we can be a little bit more objective than just saying, well, the legal interpretation, it's very difficult to enforce this, but we should at least have some parameters. I mean these guys come before us with a building permit. Have we had any further dialogue on something a little more objective? Mr. Crowell: Oh, well, having just gotten back to the county, no, I don't think we have had that dialogue. I would hesitate to have the planning commission impose that kind of conditions because then the planning commission would have to follow up and verify the implementation of the conditions, which I don't think they're equipped to do, much like Ernie, who leaves it up to the project manager. Who does the planning commission leave that up to? Council Chair Furfaro: Yeah, I guess I was looking towards and maybe I'll ask the county attorney for their comment because we have these great departments that produce information for us like the department of labor. They tell us what salary ranges are in the State of Hawaii. They tell us what typical benefits are in place. They tell us things that also deal with insurance, such as workers' comp and so forth, that it all has to be in place. I'm just wondering don't we have an avenue there somewhere to establish a little bit more objective criteria? Mr. Jung: I did some research on this issue of how can we control business decisions within permitting, and technically when you get on to the nuances of how a business is operated, most of the time courts have annulled or held invalid conditions that regulate the type of wage or those types of situations. So I would always heed the caution to the commission that they should not impose these types of conditions and look to the issues that affect the land use itself and not necessarily how the business will be operated. Council Chair Furfaro: Okay, let me restate my question so between you and I we're very clear. I'm not talking about how they operate their business. I'm not saying does a housekeeper clean 14 rooms or 16 rooms. What I'm saying is the housekeeper paid a comparable wage? Does the housekeeper have an opportunity in federal law to be able to comply for a medical benefit because they have children at home? Okay? Two different areas. Compensation versus the operating of the business. There is a difference Mr. Jung: Okay and I think that's why we would have our federal standards on the minimum wage and those types of avenues to look at rather than looking specifically at what the use of the property is. Council Chair Furfaro: So you would refer to the federal standard on minimum wage versus going to the State of Hawaii Department of Labor showing what the reasonable wages are for that purpose. We don't want just minimums. We want people to have a livable and workable wage, and we just want to make sure we're competitive in that area, especially in... and quite frankly we're talking about government projects. I mean it's more difficult to impose it on private, I understand that. But we're talking about government projects, you know? It seems to me I'm back to the same question ten years ago when I was on the planning commission versus the council. Don't we have an opportunity there to impose some parameters? COUNCIL MEETING -50- May 18, 2011 Mr. Jung: I could do the research, but as of right now looking at what the case law does say, we have to focus on what the use on the land is and not necessarily wages and whatnot that the operators of the hotel or the operators of the specific use will get because I think it strays afar from what the planning commission is there to look at. Council Chair Furfaro: Well, you have legal training and I respect everything that comes from the county attorney's office, but I just think we're going around in circles here on objectivity. We need to have a little bit more and I'll send you some correspondence directed at your boss. And if he assigns it to you, that's great. But I would just like to ... because if not, this one is exempt and the feds say that and the state ... it seems to me when they bid on a project, we say, hey, here's the building of a new civic center for the county of Kauai. We have an opportunity in those specifications to say, what our objective expectations are for the work. I would think that. It's part of the building specs. But thank you both, gentlemen, for answering my questions to best of your understanding and I'll continue to pursue this in written form. Mr. Bynum: Any other questions? If not, I want to thank you a lot for coming and answering these questions. I would encourage and I've talked and will talk to planning commissioners that when the applicant is before us, it is our opportunity to dialogue. We can set conditions if they're legal, but we can also dialogue with them about their intent because I think the strongest enforcement here is public sentiment. Hopefully like I said, people who develop in Hawaii are concerned about the sentiment of the local population and their reputation with those people. If they make commitments at our planning commission and don't follow through with them, even if we can't enforce those legally, we can hold them accountable for the commitments that they make to the community. It's my view anyway. So I would encourage the planning commissioners to ask those kinds of questions, not impose conditions that are illegal and we have good advice about what we can and can't do, but to engage in that dialogue with developers about what their intentions are. Does that make sense? Okay. Thank you. Council Chair Furfaro: Since the rules are suspended, is there anyone in the audience that would like to speak on this communication? KEN TAYLOR: Chair and Members of Council, my name is Ken Taylor. I'd like to raise an issue that I don't know if it can be done, but I think it's something that needs to be looked at where there's some sort of a fee put in place as part of the approval process and depending on the rate of local individuals being employed on that project, step -downs be facilitated so that if I turn in my paperwork and show that I had 20% employment from local, I get a certain discount from this amount. If I go up to 80, maybe I get 100% discount from this amount. And it seems like there's a way to put a process in place where you can pay this price and bring in everybody you want or you can deduct from it, depending on how many local individuals you hire. I think something like that could be implemented and it would work well at keeping local people employed. And I think it behooves the county council working with administration to move in that direction. Thank you. Council Chair Furfaro: Thank you very much. Mr. Taylor: I'd like to just say, I know we don't have development fees in place yet, but I know in communities that do have development fees you have X number of dollars on a project for park and recreational activities, but if they provide some of those activities within the project, they get those COUNCIL MEETING -51- May 18, 2011 deducted from the amount that would normally be forthcoming to the county. So I think this is what I'm talking about on employing local people as a similar kind of situation. So I think it's worth looking into. Thank you. Council Chair Furfaro: Thank you, Ken. Is there anyone else who would like to speak on this item? If not, members, I'm going to call the meeting back to order. Mr. Bynum, I will recognize you for some dialogue before I call to receive the communique. There being no one else wishing to testify on this matter, the meeting was called back to order, and proceeded as follows: Mr. Bynum: I appreciate the council's indulgence on these last two items, which I think are important especially in this time. Some of the testimony was well, geez, if there are so many projects going at once that people have to import labor, maybe we need some consideration for that. Well, unfortunately that's not the case right now. The case right now is we still have high unemployment in the trade sector, people looking for work, and so you know, this really got driven home to me in the last few months as I got calls from friends and acquaintances that work at the Sheraton Kauai who said, who are all of these people from the mainland that are doing this work when my friends and family are hurting and don't have work? And I thought that's a really good question because when these developers like the Starwood Corporation, who I admire a lot, when we were doing the housing bill, they were here dialoguing with us, telling us, well, you don't need any requirements for housing for resort projects, and indeed our housing bill doesn't have that exemption like other communities do. When we were looking at comprehensive tax reform, those same people were here saying, hey, we really want you to give us a renovation tax credit when we do renovation, which I actually was willing to support because I think that's a positive economic development stimulus. But their language was hey, we're `ohana, we're committed to Hawaii. When we do work, we hire local people, we stimulate and contribute to this economy. But in this down economy right now, we have mainland firms doing large construction projects on Kauai while our guys and women are sitting on the bench, and it just irritates me. I know we don't have the legal authority to require that as we just heard from our county attorney. But we do have a responsibility to let those people know when they want to talk to us about `ohana and they want consideration for their business when they come before the council on other matters that what goes around comes around. So thank you very much. Council Chair Furfaro: Thank you and I think the other thing that's important before I recognize anyone else is the parameters in this condition is certainly about government projects. The fact of the matter is on the private side of things, there is encouragement done at the planning department. I think we're going to visit a few of these other opportunities. I might say to you, I had an opportunity to visit the project at Sheraton Kauai with the mayor recently with Councilman Chang and I was actually surprised at how many of the construction workers there I actually knew as residents from Kauai and I was pleased. We had a break and ate some stew, and we had a good conversation. So it is important for us to follow up on those conditions, but I think it just needs to start at the planning commission. And I want to thank Mr. Bynum for asking me to put this on the agenda so we could have some dialogue in going forward. Is there anyone else that would like to speak on this item? I'm going to (inaudible) Councilman Chang and then yourself, Councilmember Kuah'i. COUNCIL MEETING -52- May 18, 2011 Mr. Chang: Chairman, thank you. I also want to thank Councilmember Bynum for putting these two items on the agenda, very informative. But yes, we did have a tour. That was my second hardhat tour there at the Sheraton. It was nice to see all local workers. However, I really would like to see more. There are a lot of people out there without work and it saddens me to have good, strong, able- bodies of our men and women that are out there that are wanting to support their families and wanting to work and able to work the hours and the days and even to do anything on a part -time basis, so 20, 30 hours a week. I'm sure many of them don't mind, rain or shine, working overtime or additional hours. So I'm glad that we're putting this on the forefront for future projects down the road that there's nothing that we can do legally; however, I hope that those who come in will first and foremost think about the `ohana here on Kauai and get our economy going because it takes every sector of the industry, construction, hotel visitor, what have you, it's all got to be a concerted effort all together to be 100% in tune with moving forward, economically speaking. So again to Councilmember Bynum, thank you for bringing these two agenda items up in front of us and in front of the public. Thank you very much Council Chair Furfaro: Thank you. Councilmember Kuah'i, you have the floor. Mr. Kuali`i: I too want to thank Councilmember Bynum for bringing this forward. I did miss a big part of the conversation earlier and when we had testimony, as well. I just wanted to say that I am committed to working on this further and I appreciate your passion. I heard your comments when I came back into the room, Mr. Chair. I'm not 100% convinced that it's not legally possible and I think we need to look into it further. And I just have to mention that it would be wrong for federal law to say what we can or cannot do when they do it themselves. And there are other ways. Maybe it's not just about residency. Maybe it's about locally owned businesses, minority -owned businesses, affirmative action. There are ways that I think we can address what the problem is, as Councilmember Bynum has articulated. Thank you, Mr. Chair. Council Chair Furfaro: Thank y signature format that we send over to some criteria, objective criteria. I will signature and mine, so. Okay, is the Mr. Bynum, we have a motion to receive please signifying by saying aye. 1u. And I'll be glad to make room on the the planning commission querying about be glad to share that inquiry with your °e any further discussion here? If not, and we have a second. All those in favor, The motion to receive C 2011 -144 for the record was then put, and unanimously carried. Council Chair Furfaro: Thank you. Now, members, what I want to do is I want to do some... Thank you planning and the county attorney's office. I want to clean up a few housekeeping items here and then go to peddlers and concessionaires. Mr. Nakamura: Council Chair, we're on page 1 of the council's agenda on communications for receipt, communication C 2011 -142 and C 2011 -145. C 2011 -142 Communication (04/05/2011) from the County Engineer, transmitting for Council consideration, a traffic resolution to repeal an existing crosswalk on Rice Street fronting the Isenberg Memorial (vicinity of Haleko Road) established by Resolution No. 68: Mr. Chang moved to receive C 2011 -142 for the record, seconded by Ms. Yukimura, and unanimously carried. COUNCIL MEETING -53- May 18, 2011 C 2011 -145 Certification (04/21/2011) of the 2011 Real Property Assessment List within the County of Kauai by the Director of Finance: Mr. Chang moved to receive C 2011 -145 for the record, seconded by Ms. Yukimura, and unanimously carried. Council Chair Furfaro: Thank you. Can we go to page 2, Mr. Clerk? Mr. Nakamura: On page 2 of the council's agenda, Mr. Chair, communications for receipt C 2011 -146, 147, and 149. C 2011 -146 Communication (04/21/2011) from the County Engineer, transmitting for Council consideration, a traffic resolution establishing no- parking restrictions at any time and tow away zone along a portion of Weke Road in the vicinity of the Hanalei Beach Park Pavilion, Hanalei District: Mr. Chang moved to receive C 2011 -146 for the record, seconded by Ms. Yukimura, and unanimously carried. C 2011 -147 Communication (04/21/2011) from the County Engineer, transmitting for Council consideration a traffic resolution establishing a school bus stop on Lohe Road, Kukuiolono Estate Subdivision, K51oa District: Mr. Chang moved to receive C 2011 -147 for the record, seconded by Ms. Yukimura, and unanimously carried. C 2011 -149 Communication (04/26/2011) from the Director of Finance, transmitting for Council information, the Period 9 Financial Reports — Statement of Revenues as of March 31, 2011, for Fiscal Year 2011, including the Statement of Revenues — Estimated and Actual, Revenue Report, Statement of Expenditures and Encumbrances, and Detailed Budget Report, pursuant to Section 21 of the Operating Budget Ordinance (B- 2010 -705), County of Kauai: Mr. Chang moved to receive C 2011 -149 for the record, seconded by Ms. Yukimura, and unanimously carried. Council Chair Furfaro: Thank you and we're going to take a break at communication 150 and we're going to go to bills for second reading. Mr. Clerk? BILL FOR SECOND READING: Mr. Nakamura: Council Chair, we're on page 7 of the council's agenda under Bills for Second Reading. This would be Bill No. 2406. Bill No. 2406 — A BILL FOR AN ORDINANCE TO AMEND CHAPTER 23, ARTICLE 3, SECTION 23 -3.2 OF THE KAUAI COUNTY CODE 1987, RELATING TO PEDDLERS AND CONCESSIONAIRES Council Chair Furfaro: Thank you very much. First of all before I suspend the rules, I do want to make an announcement that the action that the county is looking here is about regulating our parks activities. It is not about terminating any possible recreation activity. I do want to let you know that we have taken it upon ourselves to look at a number of new investments in our parks and recreation areas that could be pretty substantial and at the same time we've identified the need that our parks be for public benefit and activities that are in the park should be under the guidelines of some regulating activity. This does not mean ending all concessionaires and so forth. This means about regulating as we go forward. We have spent in some of our parks, lands that add to our park areas. Recently in Hanalei, we have an executive order on the accretion of land off the point off the COUNCIL MEETING -54- May 18, 2011 mouth of the river mouth there at Kikiula. That is the appropriate name for the river mouth. It references a red spring which is the water that comes from the mouth. We've acquired that by executive order. And we have recently made a purchase of some property along with the Hawaii Land Trust that has been transferred to us for part of our park expansion. And we will continue to do so. Those benefits in those areas also identified the possibility of improving maybe 100 parking stalls for park use. The fact of the matter is we would like to have a better and more improved boat launch areas for the community there. But I wanted to make sure before we go any further, this bill is about regulating activities through a process determined by the parks department. We do believe that the state is moving forward on similar issues along the shoreline and we want to be at least in some effort of coordination, you might say, as we move forward. So on that note, this is the second reading. I'm going to ask for a motion to approve. Mr. Chang moved for adoption of Bill No. 2406 on second and final reading, and that it be transmitted to the Mayor for his approval, seconded by Ms. Yukimura. Council Chair Furfaro: I believe we have two registered speakers and I do know that we have our county attorney here with us present that if we cannot or need to answer any questions, we will in fact make a reference to you coming up for some testimony. We have Mitchell Alapa registered as our first speaker, followed by Titus Kinimaka. The rules are suspended, gentlemen. You can come right up. There being no objection, the rules were suspended. MITCHELL ALAPA: Hello Members on the Council. Good afternoon. I'm Mitchell Alapa. Thank you for letting me come here today and share a little bit on this topic that we're talking about today. Growing up in Hawaii, I mean, I grew up by a lot of the beaches in Hawaii, famous beaches, you know. And I feel that regulating these things, it's come to the time where it needs to be regulated. I understand that and hopefully this thing can work it out with all of us because we're the last of the beach boys around here now. Being in Waikiki, growing up in Waikiki, seeing all the beach boys in action, and now they're not there anymore, it's kind of like a bummer. The only time you get to see them is when the Summer Festival is on. So I know a lot of the kids growing up today they yearn to hear the stories of how we grew up and get to see those beach boys in action, you know. And it's kind of sad, like all those good beaches that we grew up, it's not like how it used to be. You have to pay to go to the beach at Waikiki. Whether you like it or not as soon as you sign up and register at the hotel, they already make your bill already. You pay for the beach; you pay for your towel at the beach. Whether you went on the beach or not, you still pay for the beach and the towel. And then you look at your bill, you go, ho, I never go to the beach, I went to the shops. But they still had charged you for the beach. And then my friend go, whoa, Mitch, I never even know they charged me for the beach. I go, I know, as soon as you sign up at the hotel, you got a week there, you're paying for the beach for the whole week. And all members you take with you to the hotel, that's how much people they charge you for the beach, whether you're at the beach or not. Usually we go to the beach or go shopping when we go to Honolulu, right? Not to go to the beach. We got the beach back here. But as soon as you go over there and stay in Waikiki, they charging you for the beach already. So, you know, I don't want to see that happen over here. I just want to see everybody is having fun in the ocean, doing what we do, showing them like how it used to be, and it's all about having fun. That's all I want to share. COUNCIL MEETING -55- May 18, 2011 Council Chair Furfaro: Thank you for that, Mitch. I think we, too, recognize your longevity there. Yeah, the history with the beach boys is extremely important to the culture and the process. But I think you also said that we're getting to a time that we probably have to regulate it through some kind of a permitting process, so thank you very much. Does anyone have any questions for Mitch? Councilwoman Nakamura. Ms. Nakamura: surf school up at Hanalei Bay? Mr. Alapa: yeah. Ms. Nakamura: Mr. Alapa: Ms. Nakamura: Mr. Alapa: Ms. Nakamura: Hi, Mr. Alapa. I have a question. Do you operate a Yeah, I have a surf school out on the north shore, And how long have you been operating this? About 11 years over there. Eleven years? Yeah. Are you one of the long- timers there? Mr. Alapa: I'm there forever. You see, I grew up up in Ha'ena, yeah. Growing up in Hd'ena, I got to learn how to play on the water with the currents. And that's one of the heaviest places in Hawaii to grow up on the north shore. Yesterday, people died yesterday and I was down there early in the morning when that accident happened on the Na Pali Coast. I knew already as soon as I heard the sirens coming down. I knew already it wasn't nobody surfing in the bay. It was down the Na Pali Coast. The first thing I knew it was Na Pali Coast. It was kind of like ... it was unreal that one of those boys surfed too. He jumped off the boat to get the bodies. And the people on the boat were like ... they were freaked out, but he did the right thing. Ms. Nakamura: Thank you. Council Chair Furfaro: Thank you, Mitch. Mr. Alapa: Thank you. TITUS KINIMAKA: Good afternoon and thanks for the opportunity to come before you to speak. My name is Titus Kinimaka for the record. I'm speaking for the Hawaiian School of Surfing. I was born and raised on Kauai. I'm an avid surfer. I'm a Kauai boy, born and raised, and I surf. That's what I do. My whole family are surfers. I come from a family of 16. Everybody in my family surfs. My mom surfed, my dad surfed, my grandpas both surfed. We are all about Kauai. We live and breathe Kauai. I've been an avid ambassador for Kauai for the past 40 years, surfing around the world, traveling everywhere. And I've conducted myself as an ambassador of Kauai for all these years. My family has been doing surfing here for about close to 50 years. My brother started our surf school in 1960 at the Kauai Surf Hotel before the hotel even was a 10 -story building there. I grew up with all the beach boys. When I grew up here on Kauai, some of the popular beach boys at the time were Uncle Jimmy Anakalea and guys like Squeaky Kealoha and Uncle John. I learned a lot from all these guys. It was like to me some of the most famous Kauai beach boys I ever COUNCIL MEETING -56- May 18, 2011 knew in my life. As I was growing up I spent time... my brother was my mentor and he lived on Oahu as a Waikiki beach boy. He came back to Kauai, started our school in 1960 and was a protege of Duke Kahanamoku. Our family, we had so many kids, so Duke Kahanamoku took my brother in and raised my brother. And my brother came back to Kauai and started his skills back here on Kauai and we were a surf school, a beach concession at Kauai Surf. So for those many years I can say that I was the original beach boy here on Kauai with my brother and my family. And so till today we're still teaching surfing, and it's really grown. Surfing has incredibly grown over the years and you all know that already. It's popular. It's not going away. We are very much a part of the fabric of Hawaii. On Kauai we represent Kauai as ambassadors, like I said, and we are here to perform at the best that we can. We are on the frontlines. We are in the trenches and we know the people personally. We meet them personally and each year they come back. They want to come back to see us again and they want to go. And we're in the business of having fun, making people have fun, joy, laughter. And we are teachers, we are kumus. We're here to teach. I am a mentor. I teach children who are just like me to be like me, a water man, surfer, water man and knowledgeable in all 12 or 15 disciplines of surfing. And that's what I'm here about. I'm a kumu, I'm a teacher, and this is what I'm all about. The surf school is like myself on the north shore who are insured and we are serious about our business. We take this very seriously. I am an absolute advocate of water safety, always was. My brother was the first lifeguard on Kauai that taught lifesaving CPR. When it was taught in the beginning, nobody really even knew about CPR. They were doing this. Instead of compressions, they were lifting the arms off the chest back in 1962 to no avail because nobody was rescued by doing that. And now you know that CPR has come a long way and compressions is all we need to do with air and breathe. So coming all of this way from CPR lifesaving, I am an absolute advocate of safety. And the schools that are insured in Hanalei, guys who've been doing it the longest, we instill this in our students. And this is something that most people don't get anywhere. This is for free because we want people to survive when they're surfing here. We don't want to have anybody go back home with one less member in their family. And so what we do is we try to instill knowledge in our students. While we're there, we're teaching them how to avoid drowning, how to avoid getting hurt. And that's what we instill in all our students. I think we're there for a reason, to teach our tourists and have them know what's going on with the ocean. Without our knowledge, without us being out there on the beach, I think we would have a lot more accidents. Mr. Nakamura: Three minutes, Mr. Chair. Mr. Kinimaka: I think that we're here to help. We're here to be a part of the solution and not the problem. And so if regulation is what we need to do, then we're all for that, but in the guidelines of not being detrimental to my business or our businesses. So with that said, I just want to say thank you so much for your time and I appreciate this moment to have the opportunity to speak with the Council Chairman and Councilmembers. Thanks so much. Council Chair Furfaro: Before I ask other councilmembers, you know, I too also, for both you and Mitch, do want to recognize all the investment you have made J our community as it relates to water safety. Thank you very much. Mr. Kinimaka: Thank you, sir. COUNCIL MEETING -57- May 18, 2011 Council Chair Furfaro people. Mr. Bynum. But Titus, we have a few questions_ from some Mr. Bynum: Mr. Kinimaka, thanks for being here today. I appreciate it. I appreciate your written testimony we received because it has important information that does clarify that you take your business seriously, you're fully insured, your instructors have completed a rigorous state - sanctioned training, and are certified. I've lived here only 20 years, but I know that it's the water men and women on Kauai that have saved so many lives and that the instruction you provide probably saves tourists' lives because you do it in the context of what you do. Mr. Kinimaka: We do it out of aloha and just our spirit. We're from Kauai. We're real people. The people from Kauai are incredibly talented people. I've mentored kids that have become world champions like Andy and Bruce. These guys are kids that I've spent a lot of time with. They are reflections of Kauai, as much as all of us right here in this room are today. Mr. Bynum: Well, you expressed concerns in your letter and I'm going to ask questions of the county attorney because I want to make sure that your concerns are addressed. Mr. Kinimaka: Thank you. Mr. Bynum: And also, I just wanted to thank you for providing this written testimony and being here and all you do for Kauai. And on a personal note, thanks for the Kauai Boys CD, one of my all-time favorites. Council Chair Furfaro: Thank you very much. Thank you very much. Mr. Bynum, did you want me to bring up the county attorney? Mr. Bynum: Yeah, I did. Council Chair Furfaro: Okay, Mr. Trask, I'm sorry, Mauna Kea, if I can indulge you for a few questions from Mr. Bynum first and maybe from some other members of the council. Mr. Bynum, you have the floor. Mr. Bynum: Mr. Trask, thank you very much for answering some questions. In Mr. Kinimaka's testimony that he submitted, he's expressing a concern that passage of this bill would put him out of business. And my understanding of the bill is that's not the intention of the bill. It's to do what Mr. Kinimaka says, do reasonable regulation of this industry to ensure public health and safety, and that we don't have people operating that don't have the integrity of some of the folks that have been here for a long time. Am I correct in that assumption that this bill is not intended to shut down surf schools? MAUNA KEA TRASK, Deputy County Attorney: For the record, Deputy County Attorney Mauna Kea Trask. That is correct. Mr. Bynum: Okay and so part of the testimony says that until there's an understandable and readily available process for issuing required permits in place, that ... they're concerned that that be in place prior to any enforcement. Is that the intention of the administration? COUNCIL MEETING -58- May 18, 2011 Mr. Trask: That is. And then we have like we spoke about in the committee hearing. We have the rules drafted already. I went up to Hanalei yesterday to speak with Dave Stewart. I also saw Uncle Mitch down there. And I spoke with Uncle Mitch too about what we're looking to do. I drove down to Wai'oli. I tried to find Uncle Titus, but I couldn't. But what we're looking to do is create a system, a process that will address the very concerns that were brought up by Uncle Titus, insurance requirements, water safety, and that's what we're looking to do. We want to make sure that the appropriate operators are there, not only the right people teaching surfing who know how to do it, but know how to do it in a respectful way, that'll teach the rules of the lineup that we were all taught by them when we were growing up. Mr. Bynum: And this bill's not just about surf schools, right? Mr. Trask: No, it's turned into kind of this surf school bill, but it really is just for the regulation of the parks and any activity. I understand their concern regarding their businesses, but this would also cover anything that will use county parks, selling of puka shell necklaces, renting of non - cultural recreational activities like whether it be kayaks or even those kind of ocean bikes, whatever it could be, stuff that is not traditional or cultural. It would affect all of that, which I think everyone would agree that it's a good thing. Mr. Bynum: Well, I thank you for answering these questions because my understanding is the intention is get the rules in place, work with the community, not that we're going to pass this bill and go stop everybody doing what they've been doing for years. Mr. Trask: Correct. Mr. Bynum: Okay, thank you. Council Chair Furfaro: Thank you. Vice Chair Yukimura, you have the floor. Ms. Yukimura: Yes, thank you. I know our intention is not to put people out of business, but part of the regulation will be to limit the amount of commercial activities that can go on at the park, is it not? Mr. Trask: Well, that's ... on the two - tiered process, the first is to get the authorized activity and we would have to have a public hearing, consistent with the requirements of the current ordinance. At that hearing, topics that would have to be brought up and addressed to the director of parks and recreation would be limits, if any, appropriate limits, if any; times of operation; numbers; insurance requirements; water safety requirements. All those kind of issues would come up at public hearing and that's when the operators, the long -time surfers, the uncle and aunties, as well as the community, anybody would be...it would be a public hearing, and they could all chime in. What government is supposed to do is find something that everyone can agree on hopefully, if not, everyone can live with. We're looking for that middle of the road. Ms. Yukimura: Okay. And that process will happen after this bill is passed through a rules process that will be conducted by the parks department. Is that correct? Mr. Trask: Correct, pursuant to HRS Chapter 9. COUNCIL MEETING -59- May 18, 2011 Ms. Yukimura: a chance to give input. Mr. Trask: And what you're_ saying is that everybody will have Correct. Ms. Yukimura: But it is going to be a public process that tries to balance how we use our parks for commercial uses, for recreational and individual uses of all kinds? Mr. Trask: Well, commercial specifically because of course we can't regulate non - commercial. Ms. Yukimura: Okay. But part of the reason for regulating commercial is because it is affecting the regular park uses. Mr. Trask: That's right. And I think you made a really good point is that this affects our parks. This is not going to affect non - county land, non - county park land. Ms. Yukimura: The regulations will be limited to parks? Mr. Trask: Correct. Ms. Yukimura: And will be tailored almost on a park by park basis because you're looking at sort of the carrying capacity of each park. Mr. Trask: That's correct and not only that but the appropriateness. Uncle Mitch talked about Ha'ena and growing up in Ha'ena, and the park in front of the dry cave over there, I don't think anyone's teaching surf schools at Cannons or at Tunnels. So I don't know if that would be appropriate. Hanalei, it would definitely be an appropriate place, stuff like that. One of the determinations made is whether or not the designated activity, which parks it would be appropriate at. So obviously we talked about before Wailua Homesteads Park, Wailua Houselots, that wouldn't be appropriate. There's no water there. Ms. Yukimura: So in the limitation, if necessary, of the different kinds of activities, what you want to do is set the rules to make sure that those who may be selected are covered by insurance, have the proper background and training, and you could also give different weighting to the experience and the longevity of experience at the site, possibly? Mr. Trask: Every appropriate consideration will be made. Ms. Yukimura: That will be addressed as a proposal in the rules and people can come and address the proposal, right? Mr. Trask: Correct. Ms. Yukimura: People can come and say, I don't think that's fair. I think that's very fair. You need to consider this because you haven't mentioned it in your proposed rules and so forth. Mr. Trask: Correct. COUNCIL MEETING -60- May 18, 2011 Ms. Yukimura: So what you're saying is there will be opportunities for people to bring in their thoughts and their complaints if they want or whatever in terms of the rules that are being proposed. Mr. Trask: That's correct. Ms. Yukimura: Okay. Council Chair Furfaro: Thank you, Mr. Trask. Councilwoman Nakamura. Ms. Nakamura: Hi, Mauna Kea. I wanted to just echo my concerns, voiced by Councilwoman Yukimura that really it's the rule- making process that will articulate the criteria for selection. Mr. Trask: Correct. Ms. Nakamura: Of the surf schools that can operate and there will be a limit to the number. Mr. Trask: Well, the rule states... the only reason why I don't want to state there will be a limit is because the rule states that one of the things you consider is limits. Now, for example, if we go through this public hearing and let's not talk about surf schools, let's talk about say kayaks. And the community says, we think kayaks are great and we have no concerns about it. They don't have engines; we don't (inaudible) emissions; they can have unbridled amounts of numbers of people, whatever it would be. If that goes through the public hearing and the director thinks that's appropriate, then there could be situations where there would be no limits, but that's something that would have to be determined. I don't think that's very probable, but there will be a process there and I don't want to infer that there is a preordained result through that process. Ms. Nakamura: Okay, it seems like the criteria that JoAnn mentioned, longevity, experience and having a separate location where the business is conducted, where the transaction occurs, and insurance, all of those seem like good criteria to me. But, I guess, that will be hashed out in the public hearing process. Mr. Trask: Ms. Nakamura: Council Chair Furfaro: Ms. Yukimura: Council Chair Furfaro: hasn't spoken yet, Kuali`i. Correct. Thank you. Thank you, councilwoman. One more. I'm going to go to another councilmember who Mr. Kuali`i: Aloha and mahalo, Mauna Kea. So I've heard some citizens express concerns over native Hawaiian rights and customary and cultural practices. How do you think this bill impacts that or does it? Mr. Trask: Well, I don't think it does and, in fact, I'm certain it doesn't. This is the very issue that's very important to me. It's something that I work on with my office. It's something I do in my spare time. And just pardon me, I'm going to recite some laws. Under the Hawaii State Constitution, this is COUNCIL MEETING - 61 - May 18, 2011 Article 12, Section 7, the State_ of Hawaii reaffirms and shall protect all rights customarily and traditionally exercised for subsistence, cultural and religious purposes and possessed by ahupua`a tenants who are descendants and native Hawaiians who inhabited the Hawaiian Islands prior to 1778, which in this case both Uncle Titus and Uncle Mitch are, subject to the rights of the state to regulate such rights. So the constitution says native Hawaiians have these rights and this law would not abridge that. It would not affect that and that is because all rights are subject to the right of the state to regulate such rights. And if you look at the case law, this is because native Hawaiian rights and native Hawaiians have always been subject to a regulation scheme, as you're familiar and I think everybody here is familiar with. They had the kapu system. The law in Hawaiian is kind of (inaudible) directly pertains to water and the first laws regulated water because it's so important. The kapu system in the Hawaiian culture was probably one of the most regulated cultures in history. They had regulations for taking of fish, taking of resources, even gender distinctions, all that kind of stuff, eating distinctions. And the kapu system was very strict, very strict. We're not looking to enforce those kind of penalties, but what we're looking here is just reasonable regulation, regulating the commercial aspect. We're not stopping surfing, we're not stopping canoe paddling. In fact, we're just trying to regulate the commercial exercise or the commercial use of those kinds of practices so that the traditional and customary practice can be protected. If you have a reasonable amount of surf schools with the right operators, that's great. If you have too many surf schools, and I think Uncle Mitch and Uncle Titus —I don't want to speak for them but I think they would agree. If you had all kinds of surf schools over there with people who weren't experienced, people who didn't have the right training, then not only would their business be hurt, but also the kids who are out there learning. Pro surfers are born and raised in Hanalei. And we want to make sure that the kids can still go out there, families can still go out there. We're not looking to end nothing, just regulate it so that the right people at the right times can go. Mr. Kuah'i: Mahalo, I think that really clarifies it for me. And so stating that this is about regulating commercial activity and definitely not about regulating any cultural activity, I think that's important, and making sure that we protect the use of our people and our families. Thank you for making that clarification. Mahalo. Council Chair Furfaro: Yes, Mauna Kea, I want to thank you too for that explanation as the kapu system is, in fact, sustainability in the Hawaiian worldly approach to what is now referred to as western law. You know take care, preserve, use only what you need, don't take he`e off the reef that's less than 2 pounds because it has to reproduce itself at least twice in a season, don't over strip the forest because in fact, you get one baby luau, but going to have many more luaus after that, the area becomes kapu until it's replenished itself. And I just think I wanted to say what a good job you did in reminding all of us that that kapu system is about sustainability and thank you very much for that. ALFRED B. CASTILLO, JR., County Attorney: Council Chair? Council Chair Furfaro: Yes. Mr. Castillo: Excuse me for the interruption, for the record Al Castillo, County Attorney. I just want to, for the record, give one caution out there, and I too have surfed from Polihale to Haena, but that's not the point right now. What I want to say is that the fact that Titus Kinimaka and Mitchell Alapa are here testifying and the fact that county attorney Mauna Kea Trask has called them Uncle Mitch and Uncle Titus does not necessarily reflect any bias or COUNCIL MEETING -62- May 18, 2011 partiality. I would want to say for the record that I consider it as a term of respect and Mauna Kea Trask is assigned to this area because I want to make sure that there is a sensitivity to native Hawaiian rights and to Kauai rights. The reason why I say that is because we are going through the rule- making process, and because there are other people out there, I want to make sure that everyone understands that we at the county attorney's office, we practice impartiality and fairness. So I just don't want anyone out there misinterpreting what Mauna Kea Trask is saying when he calls Titus, "Uncle Titus" and Mitch "Uncle Mitch." It's a term of respect and that's all, not bias or partiality. Thank you. Council Chair Furfaro: Okay, your comments about your attorney, not taking that any further than it being a term of endearment, I'm sure you can speak with your attorney when you're back at the office. My comments, Mauna Kea, I think you did an excellent job in defining the value of sustainability as it relates to the kapu system. And I think we all understood your term of endearment there, but I have a daughter who's a land asset manager for Kamehameha School on the Big Island; I have a brother who gave pro bono work on native Hawaiian land rights. Those aren't the issues here. I think, again, I just want to reiterate thank you for that summary about old traditional practices. It was very well received. As we progress here, let me ask you, what is the process for the parks director in posting, scheduling these rules because Mr. Bynum raised the question about we pass this out today, it doesn't get implemented today. It gets implemented in some future date and time when the public can participate in what are the ample numbers, promoting water safety, hours of operation, activities in the park itself, and balancing it with public enjoyment. When do you think something like that will start to happen in the parks department? Mr. Trask: As soon as this ordinance is passed, we're going to submit to the small business review board; we're going to publish notice. This is top priority and the mayor has made that clear. The administration has said we need to get this done. The season is coming and that's just what it is, so as fast as you know. Given what has happened, what always happens with rules, I don't want to say a definite date, but I can assure you it's going to start. If it passes today, it's going to start today. Council Chair Furfaro: Okay, well, I appreciate you sharing that with us. And if there are not any more questions of Mr. Trask, I'm going to see if there is anyone else in the public who wishes to speak? Mr. Trask, I do want to thank you for your focus in getting us to the point that we're at right now. I think I said that last week, but your work on this is greatly appreciated. Thank you. Mr. Trask: Thank you, Chair, thank you, councilmembers. Council Chair Furfaro: Is there anyone else who would like to speak to this item before I call the meeting back to order? If not, I'm going to call the meeting back to order. There being no one else wishing to testify on this matter, the meeting was called back to order, and proceeded as follows: Council Chair Furfaro: I believe we have a motion and second. Did I hear you say yes? Yes, okay. So councilmembers, is there any further discussion before I call for the vote? Mr. Chang? COUNCIL MEETING -63- May 18, 2011 Mr. Chang: Thank you, Chairman. To the Alapas and to the Kinimakas, thank you. Robin, Maluhia, Titus, you guys were here early this morning, but I just want to add when I first came to Kauai in probably the mid to late `70s and of course professionally in the `80s I stayed at the Kauai Surf Hotel where I met Laleo, Kaupena's dad, your brother. And I just want to say the lifeguarding and the watermen techniques of the past have really accelerated presently right now. You talk about CPR and the rigorous state - sanctioned trainings and certified surf instructors, so I wanted to thank all of you folks because you know when we think about the lives that we lose in the ocean, we have to give those reports every year about those who lose their lives, whether they be in calm ocean, rip currents, and what have you. I think we really need to appreciate the people on the beach with ocean safety, the instructors, canoe paddlers, surfers because there are a lot of people that get in trouble that are not necessarily saved by lifeguards. They are saved by the watermen. When we think about the traditional Waikiki beach boy, Kauai beach boy, it's an all around versatile... the chair mentioned the he`e on the coral. Well, if you don't have the squid eye, you don't see the he`e. You don't know how to fish, you don't know how to lay net. It's a year -round cycle that you do different things throughout the different parts of the year and I think that's really, really important. Mr. Kinimaka, you mentioned people like Andy Irons. I remember when you told me when he was a kid, he was going to be the world champ and of course he was a three -time world champ. Bruce Irons, you know, the prestigious Eddie Aikau Big Wave Surf deal, so we got a lot of great, great water people over here and as we mentioned, it's all about regulation because Mauna Kea Trask talked about the affectionate surf bill, but it's regarding a lot of things. If I'm not mistaken, it also even involves weddings that go on on the beach. So you're not being singled out. We just want to make sure everybody... there's room, people are safe. I think you'll agree with the regulators because there are a lot of people that come here without the mana`o or maybe without the aloha, and maybe not knowing the area, and everybody wants to be an entrepreneur and start. But I respect the both of you and your long- lasting Hawaiian families because I know for a fact that many, many of our visitors, year after year after year, they want to see the same people. That's just part of the tradition in the visitor industry. They like to see the same waiter. They like to see the same surf instructor. They like Kauai as a whole, as an `ohana, so I wanted to say that. Lastly, when I mentioned about lifesaving, I remember being at Titus' house years ago. Titus, you yourself got rescued in Waimea Christmas Day. Remember when the femur ... yeah, you were there. That was you. And it was really funny because it's a great, great story as the story goes I had a conversation with Bogart Kealoha way back when when he was a firefighter at Sunset. Little did he know when he rescued the surfer on Christmas morning at 20 -25 feet, I think 1989, it was Titus. So now all of a sudden I'm with Bogart, I see Titus. Oh, Titus, by the way this is the helicopter guy that picked you up. Bogart, this is the guy that you picked up, and it all happened right here, full circle on Kauai. So I appreciate you folks coming out over here and I believe that we're moving in a long awaited process and again I want to thank Mauna Kea. You mentioned the fact that not only are you very passionate and sincere about your law, but you've spent a lot of your own time out there surveying the areas not only on the north shore, but around this entire island. But you also are receiving a lot of your mana`o from your family members up there on the north shore, so. I just look forward to us moving on because I think this is going to be something that we needed to have done a long time. So thank you very much, Mr. Chair. Council Chair Furfaro: Council Vice Chair Yukimura. COUNCIL MEETING -64- May 18, 2011 Ms. Yukimura: Yes, thank you, Chair. I too want to thank Mitch and Titus and their families for coming today. I mentioned how it used to be and I would love to go back to how it used to be. But we are not there. The island has changed and so we have to address some of these changes that have come to us. And hopefully we do it in a really fair and compassionate way that respects those who have really built the tradition. And Titus, I have to say you mentioned your brother at Kauai Surf and Percy was one of my dearest friends and I miss him to this day. And again, there's that tradition, the tradition of surfing and of aloha that you folks have been responsible, really, for creating on this island. So for all of those reasons, we really appreciate what you've done in the past and your presence here today to help guide us as we think through this process. And as was said today, the bill today is not going to make the details that we need to have to regulate the park and that will be settled in the rules process, but all of you will be able to participate and with someone like Mauna Kea Trask bringing the parameters of law, as well as his consciousness about tradition and custom here on Kauai, I am very hopeful that we'll find a fair framework for this. So thank you. Council Chair Furfaro: Councilmember Kuali`i. Mr. Kuali`i: Mahalo, Mr. Chair. Titus Kinimaka and Mitchell Alapa, I support and celebrate you as native Hawaiians, as surfers, as watermen, as kumu, as cultural practitioners, and as businessmen. Going forward, if you have any problems with this bill and the resulting regulations, please know that you can come to me and that I will help you however I can. Aloha. Council Chair Furfaro: Thank you, any more comments? I would like to say something as this thing steps forward, Mr. Trask, I hope everyone exercises the values that we hold so dear here on Kauai going forward in the process of the parameters of the rules, the number of permits. It is so important that we practice patience, - ho`omanawanui, mutual respect, also the value of kokua because what I think we all share here as Kauai residents is the stewardship of places that we have so much aloha for. And keeping that in mind, I think everyone will be doing what they can for the overall benefit of the island. And you and the parks department are tasked with living that kind of aloha to get us to the right place. So thank you again for all your work, but on that note I'm going to call for the vote. Mr. Nakamura: Council Chair, we're on Bill No. 2406. The motion to adopt Bill No. 2406 on second and final reading, and that it be transmitted to the Mayor for his approval was then put, and carried by the following vote: FOR ADOPTION: Bynum, Chang, Kuah'i, Nakamura, TOTAL — 6, Yukimura, Furfaro AGAINST ADOPTION: None TOTAL — 0, EXCUSED & NOT VOTING: Rapozo TOTAL — 1. Mr. Nakamura: Six ayes, Mr. Chair. Council Chair Furfaro: Thank you very much. Gentlemen and family, thank you for coming down and being part of today's discussion. Thank you very much. I'm going to ask to take a 10- minute recess before we go through the rest of our process here. Are you fine with that at the camera? We are in recess for 10 minutes. COUNCIL MEETING -65- May 18, 2011 There being no objection, the meeting was_ recessed at 3:15 p.m. The meeting reconvened at 3:30 p.m., and proceeded as follows: Council Chair Furfaro: Aloha, good afternoon, we are back from a short recess and caption break. And I see Mr. Isobe is in the audience, so I would like to go to the charter item. Mr. Nakamura: I'm sorry, Council Chair. We're on page 2 of the council's agenda on communication C 2011 -150. C 2011 -150 Communication (04/26/2011) from Chair Shiraishi of the Charter Review Commission, requesting Council comments regarding the Charter Amendment proposal to establish a permanent Charter Review Commission, including the burden and cost to the County to support a permanent commission. Council Chair Furfaro: Thank you very much. As you can all see, this particular communication was sent to us by the chairman of the charter review commission, Mr. Shiraishi, and on that note, I'm going to ask to suspend the rules and ask Mr. Isobe, the administrator, if he'd like to come up and give us a little more of an overview on this particular request. There being no objection the rules were suspended. JOHN ISOBE, Administrator of the Office of Boards and Commissions: Good afternoon. My name is John Isobe. I am the administrator for the Office of Boards and Commissions. At this point, the charter review commission sent this letter because they have received a request from a member or members of the community inquiring whether or not the commission would consider making the charter review commission a permanent commission, meaning that the sunset date would be eliminated or put before the voters as a proposal to eliminate the sunset date, which I believe currently the charter review commission would sunset in the year 2016 and thereafter go back to an interval of having the commission meet once every 10 years. So what they had wanted was comments from both the county council as well as the county administration on whether or not you folks felt it was a good idea or not. Council Chair Furfaro: John, by chance, was this stimulated from the members of the charter review commission themselves or this was stimulated by testimony from the public to the charter review commission? Mr. Isobe: It was testimony that they received from members of the public that the commission consider making the charter review commission a permanent body. Council Chair Furfaro: Okay and nothing of that request indicated anything other than the commissioners themselves would remain volunteers? Mr. Isobe: That is correct. Council Chair Furfaro: It is just the cost associated with the maintenance of regular meetings and any staff support that would be added for the purpose of keeping the commission permanent? Mr. Isobe: That is correct. COUNCIL MEETING -66- May 18, 2011 Council Chair Furfaro: Okay, members, do we have questions for Mr. Isobe? Go ahead, Mr. Bynum. Mr. Bynum: John, thanks for being here. Did the commission themselves have a recommendation? Mr. Isobe: Not at this point. This is very preliminary at this point. They have not really gotten into a full discussion on this proposal, but at this point felt that it may be prudent for them to solicit input from the government itself, to find out how the policy- makers felt. Mr. Bynum: You might have noticed that I came into a charter commission meeting recently. I didn't stay very long because I ended up getting an email. But I mainly came in there because I knew that you would have the agenda available and I could get an overview of what they were working on. And I saw that proposal, among others, that they were considering. So just off the top of my head, at the time I thought the same thing I'm going to share right now is why not? We now have this well run, in my opinion, boards and commissions operation happening. I think it's paying dividends for citizen participation in our government. And I never understood why there was a sunset date to begin with. But having said all of that, I have a question. My assumption is that if the charter commission was going through a period and they got a lot of things cleared up and there was a period of time that there wasn't any important business, they're not required to meet on a certain schedule, are they? Mr. Isobe: Not at this point in time, no. Mr. Bynum: Right because I thought there might be times it would be dormant that there weren't issues that were really coming forward. But rather than have to reconstitute the commission, if there were members, because you have a good commission right now, it looks like to me. So my two cents would be it seems to make sense that we make that part of our normal boards and commissions that we keep intact. If there's not a lot of important business they don't have to meet on a set schedule, right? Mr. Isobe: Yes, but to that and again, I think all of you are aware of this. There are basically three ways in which charter proposals can be introduced to the voters. One is through a charter review commission. The other is by citizens' petition, and the third is via resolution from this body. So even if the commission were not active, that would not preclude charter amendments from being proposed on the ballot. Mr. Bynum: And if I could ask one kind of unrelated question, if a charter is passed by the council as a resolution, does the charter commission get involved in that process at all? Do they review it or have public hearings? Mr. Isobe: No, typically once the council adopts it via resolution it would go straight onto the ballot, unless this body asked the commission to review it in addition to the review that was done by this body. Mr. Bynum: Council Chair Furfaro Okay, thank you. Vice Chair Yukimura. Ms. Yukimura: Thank you. So the present wording of the charter review section started 10 years commencing in 2007. Is that right? And so the COUNCIL MEETING -67- May 18, 2011 thought was that for 10 years from 2007 this charter commission would be in operation? Mr. Isobe: That is correct. Ms. Yukimura: And then presumably because it had gotten its work done by 2017, then it would disband or a new commission would be appointed? Mr. Isobe: Well, I believe both would occur. They would be disbanded and 10 years after that a new commission would then be established. Ms. Yukimura: And in those 10 years from 2017 to 2027, then the opportunities for introducing charter amendments would be the other two routes that you mentioned, the council or citizen - initiated. Mr. Isobe: Correct. Ms. Yukimura: Excuse my ignorance, but the citizen - initiated ones would come to the council to get on the ballot. Mr. Isobe; To the county clerk to ensure that there was a sufficient amount of signatures on a petition. Ms. Yukimura: Okay, so one of my concerns is the ad hoc nature of charter amendments, especially as proposed by the public. They focus on one thing and they don't always check on how it's related to something else in the charter. That's what I mean by ad hoc, and piecemeal. And I thought the function of the charter commission would be to do a more comprehensive, overall review of the charter and I don't know if that's happening. That's a huge undertaking and would really need a staff person that would be focused on it for several years, I would guess. And maybe we did that in 2010 or I don't remember. The charter commission suggested several amendments and then they were vetted with an attorney to review them, right? Okay, because I think perhaps the most current example of a need for charter change is the budget process right now. And we've been experiencing the problems of the budget process that don't allow for the kind of review that was intended, especially on the part of the council because our calendars are so tight. So it's those kinds of changes that need a lot of thought, shouldn't be done quickly and should be done really thoroughly and with a lot of expert help. I'm thinking out loud what the best system would be for that and I don't know what it would be, but that is something we need to address. How do you do comprehensive charter changes that are needed and the need is evidenced by the experience that we're having in following the charter? And then my other concern is the ease with which charter amendments can be put on the ballot. The charter is at the local level what the Constitution of the United States is at the federal level. And I don't think it was designed to be changed quickly or flippantly, i.e., without a lot of thought and process. And I don't feel like that is built into the charter at this point. If you want to change the constitution, you have to pass it through congress and then get three - quarters of the states to ratify that and I'm remembering the women's right to vote and it took two generations. And that was a very valid amendment, but it wasn't easy for the amendment. And I don't think it should be easy to change a governing document. So I guess I'm very thankful that the charter commission is asking for our input. This feels like the first time we've actually been asked for input. So thank you for that. COUNCIL MEETING -68- May 18, 2011 And I guess my comments right now are off the top of my head. I'm sorry that I didn't get to consider this more thoughtfully, but I'd like to put my comments out there for other people to react to and think about. And I would like it if we could have some time to digest our thoughts and share and synergize our thoughts on this. So one option is to send it to committee, where we could do that, or to just defer it in this body. Now there is an agendaed deadline on the charter commission's part because there was ... 23rd? That's next Monday. What is that deadline? A deadline for what? ( ?): That's just their next meeting (inaudible). Ms. Yukimura: Oh, their next meeting. If it is not a rush thing and I hope it isn't, if the charter commission could give the council a bit more time. Mr. Isobe: Yeah, obviously I'm not a member of the commission, but I'm almost certain that the commission would want a thorough and complete discussion by this body. And as was pointed out, the deadline is just indicating when they will be meeting again. And this particular proposal still has a lot more work involved prior to it being placed on the ballot. So I'd be happy to convey your thoughts to the commission at their next meeting and indicate to them that the council will be considering it, but would like more time, so the review can be a lot more thorough and the recommendations will be forthcoming from all of you. Ms. Yukimura: Thank you. Council Chair Furfaro: Councilwoman Nakamura. Ms. Nakamura: Mr. Isobe, I wanted just to understand some of the background that led up to this. My understanding is that there were a lot of charter amendment proposals that people felt needed vetting, further discussion, and we moved from a 10 -year interval to a work on it for the next 10 years then go back to the 10 -year review. Is that... Mr. Isobe: That is my understanding. Ms. Nakamura: Okay. And given that there are a lot of issues, I think I like that approach because it says, hey, let's do a comprehensive review, we're now four years into this or halfway through this period, we have five years left of this charter commission. If that was the intent, then I think that the charter commission needs the resources to do its job and do it well to have the type of review that's needed to improve processes, or ways that the county does its business, to do it more effectively. So I also agree with Councilwoman Yukimura that our charter is something that is sacred, like the U.S. Constitution, like the Hawaii State Constitution that once set, it is a very high standard for change. So I think those issues need to be addressed in this process. And so I would like to have further discussion with the charter commission about what it would take to have that type of comprehensive review. We only had five years left in this process. My preference would be to work within those five years to do what the voters set out and then make it a... so my preference would be not to make it a permanent entity, but to do our work in the next five years, do it well and make it meet every 10 years thereafter. So that would be where I would want to go and I would like that discussion and dialogue with the charter review commission on what it would take to make that happen. Council Chair Furfaro: Okay, Mr. Bynum, then Mr. Kuali`i. COUNCIL MEETING -69- May 18, 2011 Mr. Bynum: I was trying to stick to the agenda item because we've kind of talked about other things, which is fine. So if we're going to proceed with this further, I would just ask that we post this a little more broad so the discussion can include things like what is the standard to put something on because I think right now the standard to put something on is fairly low in terms of the... Ms. Yukimura: You mean to make an amendment? Mr. Bynum: To make an amendment, right? Ms. Yukimura: (Inaudible.) Mr. Bynum: If you can get the votes here, you can put it on or if you can get a relatively low number of citizens and I also have the concern that the charter not be used for what really should be an initiative process and the initiative process I know is one of the items that's being discussed there that I was very interested in because we wouldn't want to make it super simple, but right now it's almost impossible. So I think in the past citizens have looked at that, well, this is really an initiative that I'm putting forward, but it's so hard to get that on the ballot, let's make it a charter initiative and I think that's created problems for us. So I like the idea of having more dialogue and engaging, but I'd like it to be broader because even the things I'm saying right now, somebody could say that's not the agenda item. It's specific to this one provision, right? And my other thought is agreeing with Councilmember Nakamura that if the task is to do a fresh look, like what if we started from scratch? Is this the way we want to organize our government? They probably do need more resources than your office could provide even, like a consultant, maybe? Those are just thoughts. Council Chair Furfaro: Okay, Councilmember Kuali`i. Mr. Kuali`i: Aloha, mahalo, John. So in the letter it says the commission would like to know your thoughts and comments, including what the burden and cost would be to the county if the charter review commission was made a permanent commission. I have some basic things to learn just about how the charter review commission operates and where it is housed, who staffs it, if anyone, and what kind of cost is there now? Mr. Isobe: Well, the cost is dependent on the complexity and time that it takes to process amendments. Currently the oversight for that commission rests in our office. We have very good support from the county attorney's office. The commission meets once a month on a regular basis at this point. And in fact, they are undertaking a conversation, if you will, or a discussion about looking at a complete revamping of the charter. Now, the extent of that work and the complexity of that work, I cannot gauge, but if in fact it is of that magnitude, if you will, it would be a very complicated and complex process that we would have to go through. Not only to have technical support, but also legal support to ensure that the T's are crossed and the I's are dotted and the words really say what was intended to be said. So it can be a very time consuming and I wouldn't say costly, but it would require more than what we are currently capable of doing within our office. COUNCIL MEETING -70- May 18, 2011 Mr. Kuali`i: There is a difference between the basic costs for the administration of the commission, just that they meet, but then depending on the election, what's coming up, and how many charter amendments they have to review, then that cost could change. And so there are attorneys involved, besides the county attorney or hiring out attorneys and things like that? Mr. Isobe: Well, in the past we've used contract attorneys to help in supporting the commission just in terms of ensuring that amendments that were being proposed. Because we receive amendments that are basically concepts and then we try and reduce those concepts to technical words that relate then to the charter. So we had contract attorneys on an as- needed basis to assist in that review and possibly crafting of amendments. Once that work is completed, then we send it up to the county attorney's office. They then do a review for the legal checks and to ensure that those amendments are not violating the state constitution or any other laws. And then from there, we bring it back to the commission. It's a matter of them then reviewing it. Then we go through the process of needing to craft the ballot question and that also takes a lot of thought because we need to ensure that the question, to the best of our ability, in fact properly reflects what the amendment means. And then you have the process of then going out and doing voter education, which is another process then to ensure that what we are saying in the voter education process is, in fact, what was intended in the charter amendment itself. Obviously, we have the technical amendments for the charter, but for ease of the voter, we try and take those technical amendments and reduce them to layman's terms so it becomes easier for the voter to understand what it is that they're making a decision on. Mr. Kuali`i: So as far as the cost of the different amounts of amendments, that would vary? Mr. Isobe: It would vary. Mr. Kuali`i: So as far as the commission being as it is, which is not permanent or changing to being permanent, the difference would be whether they are having that administrative support all the time, even when there isn't an amendment or in- between in the downtimes or not? Mr. Isobe: Correct. It would really be driven by the magnitude of the ... as an example, if we were going to begin to undertake a comprehensive review, which is something that I've heard potentially may be in order. If in fact we were going to do a comprehensive review from page 1 to the end of the charter that would require a lot of staff time and attorney time, in addition to the time that it would take to have a full discussion on what does that mean? Because in essence what you are doing is revamping your current form of government. Mr. Kuali`i: It would probably have to be drawn out over several elections because if there are a lot of changes, a lot of amendments for the voters to consider, you don't want to necessarily put them all on one ballot. Mr. Isobe: Well, if you did a comprehensive review of the charter, you would then rather than put out 180 amendments, it would be one document, which would be a new charter. But as you look at the charter, the charter is very broad. Again, I'm using this as an example, but it gets into terms of the mayor, terms of council, districting for cou... It can run the entire gamut of what this government would begin to look like and so what that is is really, I guess, a matter of policy and decision and some of it is yes, very legal in nature, while COUNCIL MEETING -71- May 18, 2011 others are going to be more policy - generated types of discussions. And obviously this body would be intimately involved and impacted by what potentially could happen or not happen as the case may be. Mr. Kuali`i: Thank you. Council Chair Furfaro: You know, John, this kind of reminds me of something that I think we should do. You know, when I played football at Waianae I was an outside linebacker and on the jayvee I was the backup quarterback. But I didn't get to get into the game too frequently and so forth because primarily I played defense. I always got this play called 201 wide flanker right and basically it was just a sweep. You send the flanker in motion and you're probably in the last two minutes of the game. I never memorized all the plays and the coach knew, and I think we need a lot more study here if we're going to do this because this is a first - string requirement. I'd be glad to entertain in my committee maybe in four weeks — let us get through this budget period —to put something on the committee of the whole to begin this discussion because I've also been over time reminding members how important it is not to expand their communication on a regular basis for something that might come up on the agenda. So we need to meet and I guess for the clerk, I'm saying I'm willing to take on the task in the committee of the whole in about four weeks or so forth because I just don't want to run a 201 flanker right sweep. This needs attention. And we have a challenge right now in a charter provision right now. I think Council Vice Chair Yukimura mentioned everything is so compressed for the budget where we should be, as Councilwoman Nakamura mentioned, maybe in February we should be discussing strategies and not just the numbers. Have a clear place that tells us how to strategically think on our accomplishments and the county council can introduce those changes, but I think we first need to start with an agenda item. I could entertain a motion like that if you can convey that back to the commission. Mr. Isobe: I will certainly do that. Council Chair Furfaro: Councilwoman Yukimura. Ms. Yukimura: I just want to say that if we go with this route of doing a comprehensive review, there's an issue of terms of the charter commission members. Right now it's on the three staggered. Mr. Isobe: That is correct. Ms. Yukimura: And if you're going to do a comprehensive review, you almost want to have all the members there for the period of the review. Otherwise, you're having people come in and out of the process. They're learning and relearning and people with knowledge are leaving. So that's another consideration. Council Chair Furfaro: Yes, it is. Councilwoman Nakamura. The meeting was called back to order, and proceeded as follows: Ms. Nakamura: I'd like to make a motion to refer to the committee of the whole. Mr. Kuali`i: Second. Council Chair Furfaro: Thank you very much. COUNCIL MEETING -72- May 18, 2011 Mr. Bynum: Council Chair Furfaro: you can quantify that. Ms. Nakamura: Council Chair Furfaro: Mr. Nakamura: Council Chair Furfaro: the county clerk. In four weeks? I'd like to do that in about four weeks, so maybe In four weeks. Any further discussion? Council Chair. Wait a minute. Let me get something back from Mr. Nakamura: Council Chair, my apologies. In four weeks we actually moved the committee meeting because of HSAC. So it would be June 29th committee of the whole. Ms. Nakamura: On June 29th Mr. Nakamura: Committee of the Whole. Ms. Nakamura moved to refer C 2011 -150 to the June 29, 2011 Committee of the Whole meeting, seconded by Mr. Kuali`i. Council Chair Furfaro: Thank you for reminding that I moved the meeting. Mr. Bynum, did you have anything more? Mr. Bynum: Yes, please. I didn't know where this conversation was going to go today, but I'm kind of happy it did. The one thing I'd like to add to the comments you made, John, was not only the complexity, but anything has to comport with the Hawaii State Constitution and U.S. Constitution, so there are those overlays as well. So I'm glad we went to a... and I assume the posting in the 29th will be broader than this one, so we can have a broader discussion. Council Chair Furfaro: Yes, and- since they're meeting on the 23rd, if there are any enhancements that the commission would like to see us put on the agenda, that would be the time from their May 23rd meeting. Mr. Bynum: It would be just in time for the seven -day posting. There being no objection, the rules were suspended. Ms. Yukimura: May I ask of your office if you could give to us the regular operating costs of the status quo if operating as it is now, what kind of costs we're looking at? And then, also, some rough estimate of what kind of cost if we would look at a comprehensive review over five years, what that might take? And if you break it down, we can look at it and see if there's something missing that we might think of or just kind of a framework for us to begin from? Mr. Isobe: Sure. And just so I'm clear, the costs from our office would be just specific to the time and effort that is involved on the charter review commission and not for all the other commissions? Ms. Yukimura: That's correct. COUNCIL MEETING -73- May 18, 2011 Mr. Isobe: Council Chair Furfaro: Okay. Yes, Councilwoman Nakamura. Ms. Nakamura: Can I add to that list of something that would be helpful in preparation for the committee of the whole meeting. Can we have a laundry list of possible amendments to the charter that they're contemplating? Mr. Isobe: I can do that, yes. Council Chair Furfaro: Actually, it might also be worthwhile getting some of the items that didn't make... from citizens that didn't make the charter commission's review? Mr. Isobe: Over what period of time? Council Chair Furfaro: Since 2006. That's the cycle we're in. Ms. Yukimura: Well, either from citizens or from the charter commission itself. Council Chair Furfaro: Yeah, from anywhere. Ms. Yukimura: From anyplace, any source. Council Chair Furfaro: I think you got the gist of it and I do want you to know that I did know more than one play as the jayvee quarterback. The other one was the quarterback draw. So whatever group, well - pointed out Council Vice Chair. So, are we at a point here? I need to ask for public testimony. John, if we have no more questions for you, thank you. Mr. Isobe: Thank you. Council Chair Furfaro: Is there anyone in the audience who wants to testify on this? Ken, come right up. KEN TAYLOR: Chairman and Members of the Council, my name is Ken Taylor. Back when this 10 -year issue was put in place, it was from wrestling with both the comprehensive review of the charter and at that time a discussion that was going on about looking at management style of government. And it was the decision of the commission at that time that both of those were very time - consuming projects that would require time, and so they came up with the suggestion of the 10 -year consecutive, so that the time would be there to deal with these two issues. One of those issues is now behind us and the comprehensive review process is left. And certainly in the next five years, that should be adequate time to deal with this. And then going back to the once every 10 years, as you said, the charter shouldn't be just changed helter- skelter along the way. So having a review process... and I think when the 10 -year continuous process was put in place, I think the commission dealing at that time they started out with, if I recall correctly, something around 30 different possible amendments. And by the time it got to a vote, it was down to 14 or 16, something like that. So they had a lot of work in that period of time and you can understand why these larger activities could not be dealt with in the timeframe in which they had to function. So I think that once the major comprehensive review, although I'm apprehensive about going there, the charter for the most part has served us well over the last 30 -plus years and other COUNCIL MEETING -74- May 18, 2011 than some minor changes, I don't really see anything that benefits the community in general, of any great changes. I know some of you have expressed concerns about how the community has the ability to collect signatures and make changes to the charter, but that's part of government. And when you really look back over the last 30 -plus years of the charter being in place, there has been very little, very little activity from the public... Mr. Nakamura: Three minutes, Mr. Chair. Mr. Taylor: ...to move forward with change. So I don't see a whole lot of problem with the current charter and I certainly welcome the idea of bringing this to the committee of the whole and have some more discussion. But when you really get down to it, the framers of the commission did one heck of a job, just like going back in history with the federal constitution. In reading parts of that today, I wonder in today's world whether we could ever come up with a constitution as great as was done over 200 years ago. I find it interesting that when some of us were pushing to have the management style of government considered, a frequent argument was if it isn't broken, don't fix it. And I will say today of the existing charter, if it's not broken, don't try to fix it. Thank you. Council Chair Furfaro: Thank you. I just want to make sure we all understand here this council in going into the committee of the whole is about the request that came forward to us from Mr. Isobe whether there is incremental privilege here to appoint the charter review commissions every 10 years or the question as posed to us to have the consistent piece? Okay? This is not for us to be reviewing all those past items. I want to make sure that's very clear. Getting that information for us is an item that basically tells us what does come before this committee over a period of time? Because the other part of Mr. Isobe's questioning from the commission is are we willing to allocate additional sources? So I want to make sure we're real clear. We're not trying to have it a situation where now we're using this for the purpose of revisiting all of the past decisions and process which was done quite well. The reality here is do we want this commission to be a standing, ongoing commission, or are we prepared to budget them some more resources based on reviewing the work? So I want to make sure that's real clear. The only concern I have right now is what we experienced in my first leadership through the budget, as Vice Chair Yukimura pointed out, our time seems to be compressed where we're not getting time to think strategies, evaluate current conditions and so forth. It's going right into the budget process and the staffing. So your comments are well- taken. That wasn't a question. That was acknowledging your comments. Thank you, Ken. Mr. Taylor: Thank you. Council Chair Furfaro: Is there anyone else who wants to speak to this item? There being no one else wishing to testify on this matter, the meeting was called back to order, and proceeded as follows: Council Chair Furfaro: If not, we have a motion from Councilmember Nakamura ... Yukimura about moving something to the committee of the whole. Ms. Nakamura: Oh yeah, that's right. Ms. Yukimura: Yeah, that was yours. COUNCIL MEETING -75- May 18, 2011 Council Chair Furfaro: Okay, you had me thinking I was running the wrong play. Okay, so it was Councilmember Nakamura and I think we're at an item that comes up on the 29th date - specific, 29th, date - specific. So, any further discussion. before I ask for... Mr. Bynum? Mr. Bynum: It's just that I want to thank you for clarifying that this is not to revisit all of those charter amendment things. Council Chair Furfaro: It's to understand the volume that they went through since 2006. Mr. Bynum: I had the same fear, so thank you for clarifying that, Chair. Ms. Yukimura: We're talking about the process, not specific items. Mr. Bynum: Process, not content. Council Chair Furfaro: That's what we want to review. Okay on that note, this is to receive? Mr. Bynum: No. Council Chair Furfaro: This is to refer to committee of the whole June 29th. Mr. Nakamura: Correct. Council Chair Furfaro: Am I right? Mr. Nakamura: Yes and then... Council Chair Furfaro: Okay, so that's the motion. Refer to committee of the whole on June 29th. All those in favor, please say aye? The motion to refer C 2011 -150 to the June 29, 2011 Committee of the Whole meeting was then put, and unanimously carried. Council Chair Furfaro: Thank you very much. Now we have our roads people here, Mr. Clerk. I just want to share with you folks that I will be asking that we again defer this only for two weeks as Mr. Dill, when I made mention of no flexibility we did not realize that he'd be actually on the mainland for his son's college graduation. So gentlemen, I'm going to ask you to come up after we read the item. I want to pose eight very specific questions to you, that I hope we can get answers for two weeks from now and those responses be in writing. And then I plan to defer this. That's what I would like to do, so Mr. Clerk can I have this item read? Mr. Nakamura: We're on page 5 of the council's agenda, Council Chair, on communication C 2011 -171. C 2011 -171 Communication (05/03/2011) from the County Engineer, transmitting for Council review, comment, and approval the Proposed Islandwide Resurfacing List for Fiscal Year 2011 -2012. COUNCIL MEETING -76- May 18, 2011 Council Chair Furfaro: Thank you very much. Gentlemen, I'm going to suspend the rules. If you could both come up and I'll pose those questions to you now and see if we have other questions from members in the public. I'm going to ask you to introduce yourself first. There being no objection, the rules were suspended. LYLE TABATA, Deputy County Engineer: Chair, the rest of the council, Lyle Tabata, for the record, Deputy County Engineer. Council Chair Furfaro: Thank you. The first question and if the staff can focus on my comments here. As we're talking about the use of the MicroPaver computer system to actually complete and manage data, could you give us some narrative on that benefit, what we could anticipate in having this database in public works for roads? That's question number one. Number two, who is the responsible person that will be gathering that information and maintaining it going forward? You know, who will be accountable for the collecting and managing of that data? Number three, what is the criteria for you actually deciding which roads get the resurfacing? Is it time and use? Is it equitable rotation? You know, what would be that? Question number four, in the past it seems that to get us to 1.5" of asphalt topping, we seem to have only been able to qualify 95 square feet of asphalt per ton and yet the standard that has been brought to our attention seems to indicate that we should be, by HAPI standards, we should be getting 108 square feet. What might be the variances? In reconciling the budget for this year, this is question number five, between the total that we had in the budget of $5.4 million in the past reserve, it was reconciled that we only had $5,158,000. So there is a difference of about $256,000. Do we assume that because when we get the bids in front of us, that the tonnage cost, there's a range from 235 to 260 because it's not an absolute number, depending on the area of the island. Is that what made up that $256,000 difference? And now that we have this cumulative total including this year's approved $1.4 million, what can we anticipate as what total mileage can we resurface with those combined dollars? If the net carryover was that $5.1 million and we added $1.4 million this year, what is the anticipated amount we should be getting? We have always based our resurfacing plan on trying to do 10 miles a year. It seems with the most current statistics we have, at best we're only getting about six miles a year. If we were to get 10 miles a year, what should we be planning in the future as a budgeted amount if we're going to do 10 miles a year? This next one can be just a really clear yes or no. Will we be using the HAPI standards going forward? This question came from Mr. Bynum. How are we going to handle the back fill on the edges of the roads as we go to repave if we want to firm those shoulders up? Is that simply an in -house cost of repair and maintenance? COUNCIL MEETING -77- May 18, 2011 We have two roads, this is clearly one we have had heard from Mr. Mickens before dealing with Kahuna Road. It's only 14 feet wide and it's been on our past resurfacing list, but the county standard for a road should be no less than 16 feet wide. How do we address those substandard roads? Is it your plan to use other capital money and us not anticipate it being in the resurfacing? Is there any —this is the second to last question —is there any additional resurfacing that addresses county arteries, like Olohena, versus other interior roads? Will there be a different standard on the major arteries? This is a carryover from a long time ago, upper Waipouli Road where there are several turns, that road too is actually substandard by 3 feet width. So is there any particular plan to address these roads that are only 13 feet wide? I mean if the answer is simply ... you know one of the things you're considering is making the road one -way, then kind of tell us that, if you can. But if we need to put in extra bond money to widen the road, please tell us that as well. So I know I think that's eleven questions. If we can get some written answers back in two weeks. Mr. Tabata; I have 12, but we will. Yes, we'll do our best. Council Chair Furfaro: Okay, I'm sorry. I had problems remembering 201 wide receiver flanker right. So maybe I missed the count on my own list here. So I would actually like to get some responses in writing and so I'd like to defer this for another two weeks. Mr. Tabata: We've addressed many of these already. Council Chair Furfaro: Oh, okay. Mr..Tabata: And so we are prepared to answer. Council Chair Furfaro: Good, so that's in two weeks. Vice Chair Yukimura, you have the floor Ms. Yukimura: I have a question, thank you. I just want to make sure that the deferral is okay in terms of your timetable for going out to bid. We're not affecting that negatively, are we? Mr. Tabata: No. We are still moving forward with preparing the procurement documents. And it will launch when approved. Ms. Yukimura: Okay, right. Okay, that's very good. Council Chair Furfaro: Excellent, excellent question, but I did check on that before I agreed to, but an excellent question, thank you. Ms. Yukimura: For the record, thank you. Council Chair Furfaro: Councilmember Chang? No? Is there anyone else? If not, we're going to see you in two weeks. That date is going to be... Mr. Nakamura: That would be June 1st council meeting. COUNCIL MEETING -78- May 18, 2011 Council Chair Furfaro: June 1st council meeting. And we're very happy for Larry being able to go up to see his son's graduation. So I'm going to call for a deferral here. Ms. Yukimura: So moved. Mr. Chang: Motion to defer until, I'm sorry the date was June... Council Chair Furfaro: Wait a minute, do I see a gentleman in the back who wants to give testimony? Okay, hold that right there. Thank you very much. Glenn, I don't know if you heard the end here, but they're going to come back with written responses June 1. GLENN MICKENS Yes, for the record, Glenn Mickens. Thanks, Jay. I appreciate your asking these questions, questions I've probably asked for 17 years waiting for answers. Council Chair Furfaro: You start to remember then easy, you know, after ... but I've only been here for nine of those 17 years. Mr. Mickens: Okay, Jay. I believe one of the most important on the laundry list of question here, one of the most important you asked was are HAPI standards going to be followed? Because as you know if we don't rip up that sub -base, we don't cold plane and take those ... rip the cracked sections out, you're going to come up with potholes and that's one of the things you didn't have on here, potholes. Where they take this cold mix, I can still hear Ron Kouchi when he was on the council years ago sitting here and saying all we do is dump cold mix in the hole. We don't even compact it or anything. If you look at their code thing, it said they'll cut a section out, put a sub -base down and properly put it in there. Go up by the middle school. That road going up by the middle school, it's like the Burma Road. All they've done is put cold mix, cold mix, cold mix. And this is the only way they do it. But if we follow HAPI standards, all of these things are going to be corrected. I guess that's the biggest thing. And it's a monumental job for Ed and for Larry to go back and try and find out when these 300 miles of county roads that we have, to actually find out what was wrong; drilling core holes to see if there was any sub -base put down, as Joe Rosa so well said the last time he was testifying. So you've got many, many things to consider with this thing and the other question you asked, we're paving about six miles of road. And in their list, the other thing I don't believe I heard you ask them, not giving you a yearly resurfacing list as was done in past years, they've now come up with two or three years where they've accumulated $8 million some dollars in the budget. Well, does that mean that they haven't been doing any paving? I don't think so. But does it mean they haven't been doing any paving and if they have, why didn't they bring this resurfacing list to you for your approval as they've done year after year? So that hasn't been done and I want to see why, and Tim's question about the shoulders not being filled in right. There are many, many roads that have been paved for five, six years that still got the drop -off on the thing. I believe in the latest budget, in the latest resurfacing thing, it has a little thing in there saying that they, the county, will now pay for doing that. Prior to that time, it always had in the contract that the contractor would be the one to... no, I'm sorry. The county was the one to be doing it. The contractor did the digging for the thing to be doing it. So I'm just wondering whether, again, we're looking at roads five, six, seven years old. In that one section of road over there on Kawai...you've driven up Kawaihau, I presume, all you ... I know you have, Tim. Mr. Nakamura: Three minutes, Mr. Chair. COUNCIL. MEETING -79- May 18, 2011 Mr. Mickens: I Kawaihau, up above where Ken Taylor lives up there by Growing Green's Nursery. Just below that there's a section of road I think Glover repaved Kawaihau Road all the way from St. Catherine's Church all the way up to Kahuna Road, six, seven years ago. I don't remember how long it's been. Most of it is still in pretty good shape, but there's one section there that's completely ripped apart. It's horrible. I don't know if it wasn't paved or whether, again, there's a spring under the road and then with that Olohena Road that you brought up, Jay, that's a disgrace to this county to have barricades put out there saying "Caution, potholes ahead." Don't fix the potholes, put a sign out. And that water is all under the road, it's going to have to be fixed. It's going to cost money to go down there and put a thing to drain that spring, I guess. There's a spring under the road there right below Thronas' rental houses and stuff. But that place in there is just in horrendous shape. But this place is along Olohena Road that hasn't been paved. And it's not even on the repaving list now. So what are we saying? We're going to go another year before the next repaving list comes up. If it is, I mean, we got problems because that thing isn't going to last another year. Anyway, Jay, I sincerely appreciate your keeping this on the agenda and I hope that Larry will be back in two weeks. I gave Ed a copy of my testimony, which has questions maybe you didn't ask on the thing. But let's see. Hopefully they will be able to get back here and do that, okay? Council Chair Furfaro: Well, Glenn, I appreciate you sharing your list, but the 12 questions that I summarized, obviously, I'd like to see the responses in writing. Mr. Mickens: Right. Council Chair Furfaro: At the same time we have to be very truthful and honest with one another. Based on the money that we get and we only are able to do seven miles of road, then we need to say hey, we need to be looking at more money in there if we're going to get on any kind of schedule. Mr. Mickens: You're 100% right. Council Chair Furfaro: Well, let's give them in all fairness, let's give them an opportunity, you know? And the question about HAPI standards is there and I think the HAPI standards cover similar things that you questioned about the potholes. If we're using the HAPI standards, then... Mr. Mickens: That will be taken care of. Council Chair Furfaro: It should be taken care of that way and we'll let them have time to respond to that. Mr. Mickens: And the roads are costing about $280,000 or $300,000 a mile. So it's not to ... you're a math guy, Jay. You know that we can only do so many roads and as the cost of oil increases, that cost is going to be more so it's less. And by doing HAPI standards as Larry pointed out and as it has been pointed out before, HAPI standards are going to cost more upfront. There is no doubt about that. But if we can only do a half a mile, that half a mile is going to .last for 20 or 30 years as opposed to one year. So it's penny wise and dollar stupid by doing it the way we're doing it now. So again, I... COUNCIL MEETING -80- May 18, 2011 Council Chair Furfaro: Well, we'll see what we come back with in all fairness to these gentlemen. It will come back in writing. What they can do within the guidelines that are there, that are outlined, if we have to look to a little more of an allocation each year, then that's what we'll do. But let's give them the chance for the responses. Mr. Mickens: I just want to acknowledge Dickie Chang. Two years ago now, Dickie arranged a meeting with public works and we sat there going over these things. Nothing ever came of it, but he was good enough to arrange to meet. I think Dickie remembers being there, okay. So I do appreciate the consideration. Thank you, Jay. Council Chair Furfaro: Thank you, Glenn. Ken, did you want to speak? KEN TAYLOR: Chair and Members of the Council, my name is Ken Taylor. We certainly can't put the blame of what has happened in the past on Larry and Ed in their new capacities and what has happened in the past. But a couple of things that concern me is that I believe, chair, you indicated that our goal was to do 10 miles a year. At that rate it would take 30 years to make the rotation. And I don't think that in most cases in our climate, a road will last 30 years. So I think we need to look at probably increasing that goal of 10, maybe to 20 -30 miles per year versus 10. But again, that takes a lot of money. Where does the money come from? Certainly it is a very difficult situation to deal with, especially in these economic times. Again, as I've said many times, we're at the end of cheap oil which we know that the cost of petroleum -based products are going to continue to increase and increase and increase, and so we have some real dilemmas. I read in some communities across the country because of these economic problems that they're actually reverting some of the lesser -used roads in their counties back to gravel. That may or may not be a consideration for us here. But if it is, since it is being considered in other communities, it might be something in helping the budgets and put the efforts into the more well - traveled roads. So there are ways of dealing with the economic problems along with this. It's funny that we've come full circle in the last 100 or so years when we went from dirt /gravel roads back in the horse and buggy days into the early auto industry and then to paving and now we're at a point where we're almost having to look at going back to where we were 100 years ago. This is why it's so important to get the automobiles off the road and more activity into public transportation... Ms. Akiona: Three minutes, Mr. Chair. Mr. Taylor: ...where we can have this activity and on the flipside of that, the more and more people we put into public transportation, the less tax dollars we generate for taking care of the roads. So it's a real knot that has to be dealt with. And I'm not sure what the answers are. But we have to be realistic about it and we have to realize that 10 miles, I don't think, every year is going to cut it. I was sort of under the impression that we hadn't done any road paving in the last couple of years. But I know Laipo Road that goes from Hauaala Road up to. Kawaihau was paved either earlier this year or the end of last year. It's about six to eight blocks. It is very narrow. I question whether it meets the standard width in some areas of that road, but it was certainly in need of paving. But at the same time Hauaala Road also was in need of paving and when the equipment was in there, why wasn't Hauaala Road also repaved? There are a lot of things that are happening or not happening, depending on how you look at it. These are questions that people out in the community that I talk to raised and wondered. I think we need some answers to some of it and I like the idea of moving forward with a COUNCIL MEETING -81- May 18, 2011 program that has all this information in it. I think it's going to be a wonderful step forward and in time it will sort of catch up with itself if we can figure out how to budget for getting caught up with all of the years that have been neglected. So thank you for your time. Council Chair Furfaro: Ken, I need to correct the record a little bit here, so. First of all, when I referenced the 10 years, that's what I was told. That wasn't me saying that's the standard. Mr. Taylor: I understand. Council Chair Furfaro: And I think both you and Mr. Mickens need to start realizing you're here speaking to us, the charter prevents us from directing them. What we can do is allocate the appropriate money and so forth if we understand the challenges and problem. So, if I took the money that they've done, they've only averaged about six or seven miles of paving recently. Where did that money come from? I think Mr. Mickens answered it himself where we made an allocation for extra funds. They spent that money but didn't spend the regular money that was going in each year that built up that $5.8 million surplus in the highway fund. Number two, we're getting to a point that if we can understand their challenges and we have something in writing, then it's up to this body to reconsider allocating some additional funds or starting to have the dialogue about what you wanted to do and I read that about western Illinois, where that part of the state didn't get their fair share of stuff and they actually wanted to secede from the state of Illinois because they were getting gravel for roads. So is that a real presentation here because I don't think Kauai wants to secede from the state of Hawaii because of a road issue. So I just want to make sure that we understand what I said. Obviously if we decide we can do everything in 12 years, that means hey, we might have to look at raising the fuel tax to have more money in the highway fund. But that's not the discussion at the table here. The discussion at the table is please, Mr. Dill, give us some information so we clearly understand what we need to do, what the problem is. And I think when we get those back, then we'll be able to digest it and I will ask them again to summarize for us what is the total mileage of roads in the county of Kauai that we're responsible for. And we'll start from there in two weeks. How's that? Mr. Taylor: Thank you and I just want to say I really appreciate the dialogue that's gone on over the last couple of months on this issue. And I think the community in general is very appreciative of it. And it's these kinds of discussions that allow the community to know and understand what is going on, what are the problems and become part of the solution to the problem. Thank you. Council Chair Furfaro: Thank you and again, Ken, I don't want to assign any blame to issues in the past. We want to go forward with this council body. We want to go forward. Thank you very much. On that note, I will now entertain a motion to defer? There being no one else wishing to testify on this matter, the meeting was called back to order, and proceeded as follows: Ms. Yukimura: So moved. Council Chair Furfaro: Can I have a second? Mr. Chang: Second. COUNCIL MEETING -82- May 18, 2011 Council Chair Furfaro: Thank you. All those in favor to defer this date specific June 29th, please say aye? Councilmembers: Aye. Ms. Yukimura moved to defer C 2011 -71, seconded by Mr. Chang, and unanimously carried. Mr. Chang: No it's not June... was it two weeks from now, right? Council Chair Furfaro: Oh, I'm sorry. I was on the old date. My apologies. Okay, so gentlemen, we'll see you in two weeks. Thank you very much. Ms. Yukimura: My motion was just to defer. Council Chair Furfaro: And I don't know if you caught the last question about total mileage of roads? Thank you. Could we have the next item, please? Mr. Nakamura: Council Chair, we're back on page 2 of the council's agenda, on communications for receipt, communication C 2011 -151 and 2011 -152. C 2011 -151 Communication (04/27/2011) from Councilmember Bynum, transmitting for Council consideration, a proposal to amend Chapter 5A, Kaua`i County Code 1987, as amended, relating to home exemptions: Mr. Chang moved to receive C 2011 -151 for the record, seconded by Mr. Bynum, and unanimously carried. C 2011 -152 Communication (04/28/2011) from the County Engineer, transmitting for Council consideration a traffic resolution amending Resolution No. 2011 -34, which established no parking restrictions in the vicinity of the Grand Hyatt Kauai Resort & Spa, to include a no- parking restriction at their main entrance on Po`ipu Road: Mr. Chang moved to receive C 2011 -152 for the record, seconded by Mr. Bynum, and unanimously carried. Council Chair Furfaro: Was there any testimony from the audience? None. Okay, next item. Mr. Nakamura: On page 3 of the council's agenda on communications for receipt, C 2011 -153, 155, 156, 157 and 158. C 2011 -153 Communication (04/29/2011) from the Director of Personnel Services, transmitting for Council information, the Second Quarter Reports (January — March) relative to vacancies, new hires, reallocations, promotions, as well as additional information,regarding positions established: Mr. Chang moved to receive C 2011 -153 for the record, seconded by Mr. Kuali`i, and unanimously carried. C 2011 -155 Communication (05/03/2011) from Council Vice -Chair Yukimura, providing written disclosure on the record of a possible conflict of interest and her recusal on the Kapa`a/Lihu`e Boys & Girls Club Facilities Upgrade Grant line item in Bill No. 2403, due to her position on the Advisory Board for the Boys & Girls Club of Hawaii: Mr. Chang moved to receive C 2011 -155 for the record, seconded by Mr., Kuali`i, and unanimously carried. COUNCIL MEETING 83 May 18, 2011 C 2011 -156 Communication (05/04/2011) from Councilmember Chang, providing written disclosure on the record of a possible conflict of interest and his recusal on the "Commercial Support — Kaua`i Marathon" line item under the "Other Services" line item (Account No. 001 - 0901 - 512.30 -00) in Bill No. 2402, due to his ownership of Wala`au Productions: Mr. Chang moved to receive C 2011 -156 for the record, seconded. by Mr. Kuah'i, and unanimously carried. C 2011 -157 Communication (05/05/2011) from Councilmember Rapozo, providing written disclosure on the record of a possible conflict of interest and his recusal on C 2011 -132 (on the May 4, 2011, Council Agenda), a request from the Prosecuting Attorney to purchase a 2003 Chevrolet Cavalier with VOCA grant funds, because he was employed by the Prosecutor's Office and participated in the appraisal of the vehicle: Mr. Chang moved to receive C 2011 -157 for the record, seconded by Mr. Kuali`i, and unanimously carried. C 2011 -158 Communication (05/05/2011) from Councilmember Chang, providing written disclosure on the record of a possible conflict of interest and his recusal on ES -486 (on the May 4, 2011, Council Agenda) regarding a claim filed by Garden Isle Disposal: Mr. Chang moved to receive C 2011 -158 for the record, seconded by Mr. Kuah'i, and unanimously carried. Council Chair Furfaro: Thank you. Mr. Nakamura: We're on page 3 of the council's agenda, Council Chair, on communication C 2011 -154. C 2011 -154 Request (05/03/2011) from the Office of the County Attorney for authorization to expend up to $90,000.00 to engage special counsel to assist with the refinancing of approximately $27 million of County of Kaua`i's 2001A General Obligation Bonds: Mr. Chang moved to approve C 2011 -154, seconded by Mr. Kuali`i. Council Chair Furfaro: Any discussion? Anyone in the audience wishes to speak? Seeing no one, Councilwoman Yukimura, you have the floor. Ms. Yukimura: Just a question for the county attorney. There being no objection, the rules were suspended. Ms. Yukimura: While you're walking there and in the interest of time, thank you, Mr. Castillo. The presumption here is that the refinancing will save the county money. AL CASTILLO, JR., County Attorney: Yes. Ms. Yukimura: And so while we're expending $90,000.00 hopefully that will be covered in the savings that we accrue from a successful refinancing. Mr. Castillo: Yes, and for the record, Al Castillo, County Attorney. Yes and from the last time, even the last time we asked for 90, we did not spend that amount either. Ms. Yukimura: Okay, thank you very much. Mr. Castillo: You're welcome. COUNCIL MEETING -84- May 18, 2011 Council Chair Furfaro: Thank you. And Councilwoman just to follow up on your query, as I will be going up as part of the team to negotiate this refinancing, we anticipate or hope to be saving $600,000.00. Ms. Yukimura: Excellent, thank you. The meeting was called back to order, and proceeded as follows: Council Chair Furfaro: Mr. Nakamura: Council Chair Furfaro: signifying by saying aye. Okay, did we have a motion to approve? Yes, we have a motion, Council Chair. Any further discussion? If not, all those in favor, The motion to approve C 2011 -54 was then put, and unanimously carried. Council Chair Furfaro: Thank you very much. Mr. Nakamura: Now, Council Chair, if we can go to page 3, communication C 2011 -159. C2011-159 Communication (05/05/2011) from the Mayor, submitting his supplemental budget communication for Fiscal Year 2011 -2012 and proposed amendments to the budget bills, pursuant to Section 19.02A of the Kauai County Charter. Council Chair Furfaro: Thank you. Now it is my understanding as we move to approve this, this would be creating a public hearing on May 25th? Mr. Nakamura: Yes, Mr. Chair, the motion would be to schedule public hearing. Council Chair Furfaro: And that public hearing will be at 8:30 in the morning? Mr. Nakamura: At 8:30 a.m. on May 25th and also to refer it to the Special Council Meeting of May 25th at 9 a.m. Council Chair Furfaro: Thank you very much. So I'm looking for a motion... Ms. Nakamura: I'd like to make a motion to schedule public hearing at 8:30 a.m. on May 25, 2011 and refer to the Special Council Meeting at 9 o'clock on the same day. Mr. Chang: Second. Ms. Nakamura moved to schedule public hearing for C 2011 -159 on May 25, 2011 at 8:30 a.m. and to thereafter refer it to the Special Council Meeting on May 25, 2011 at 9 a.m., seconded by Mr. Chang. Council Chair Furfaro: So there's a motion to approve. It was seconded for the scheduling of a public hearing on May 25th. Ms. Yukimura: Isn't it a motion to refer rather than to approve? COUNCIL MEETING -85- May 18, 2011 Council Chair Furfaro: Refer, I'm sorry. Ms. Yukimura: Okay. Council Chair Furfaro: My fault. It's been a long day. Ms. Yukimura: It has been. Council Chair Furfaro: We started at 8:30 so. The motion is to refer. I'm sorry. I retract what I said about the approval. It's a referral. Thank you, any further discussion? Anyone in the audience that wants to speak on this one? No? No, Ken? Thank you. Okay, all those in favor, signify by saying aye. The motion to schedule public hearing for C 2011 -159 on May 25, 2011 at 8:30 a.m. and to thereafter refer it to the Special Council Meeting on May 25, 2011 at 9 a.m., was then put, and unanimously carried. Council Chair Furfaro: Thank you. Next item, Mr. Clerk. Mr. Nakamura: We're on page 4 of the council's agenda, Council Chair, on items to receive, communications C 2011 -161, 2011 -162 and 2011 -163. C2011-161 Communication (05/06/2011) from Councilmember Chang, providing written disclosure on the record of a possible conflict of interest and his recusal on the "Recycling Programs" line item (for operations with the Kauai Recycles Program) under "Other Services" line item (Account No. 208- 2033- 641.30- 00) in Bill No. 2402, due to his ownership of Wala`au Productions: Mr. Chang moved to receive C 2011 -161 for the record, seconded by Ms. Yukimura. C2011-162 Communication (05/06/2011) from Councilmember Kuah'i, providing written disclosure on the record of a possible conflict of interest and his recusal on the "YWCA Family Violence Shelter" line item and the "YWCA Sexual Assault Treatment Program" line item under "Other Services" line item (Account No. 001 - 0901 - 512.30 -00) in Bill No. 2402, due to his employment with the YWCA: Mr. Chang moved to receive C 2011 -162 for the record, seconded by Ms. Yukimura. C 2011 -163 Communication (05/06/2011) from the Director of Finance, transmitting for Council consideration, a resolution approving the issuance of General Obligation Refunding Bonds to refund all or a portion of outstanding General Obligation Bonds, Series 2001A, previously issued by the County of Kauai: Mr. Chang moved to receive C 2011 -163 for the record, seconded by Ms. Yukimura. Council Chair Furfaro: Thank you. Any discussion? Anyone in the audience wanting to speak on this? No? Thank you, Ken. Mr. Nakamura: We're on agenda item, on page 4, C 2011 -165. Ms. Yukimura: We have to vote. Council Chair Furfaro: So this is 161, 162... Mr. Nakamura: 163. Council Chair Furfaro: And 163. All those in favor say aye. COUNCIL MEETING -86- May 18, 2011 The motion to receive C 2011 -161, C 2011 -162, and C 2011 -163 for the record, was then put, and unanimously carried. clerk. Council Chair Furfaro: Thank you, now we're on 165. My apologies to the Ms. Yukimura: Move to approve. Mr. Chang: Second. Council Chair Furfaro: Would you read the item, Mr. Clerk? Mr. Nakamura: Council Chair, on communication C 2011 -164, which is the briefing by the state legislative delegation, we had no motion or second to receive this briefing. Ms. Yukimura moved to receive C 2011 -164 for the record, seconded by Mr. Kuali`i, and unanimously carried. Council Chair Furfaro: Thank you very much. 165, then. Mr. Nakamura: We're on communication for approval, C 2011 -165. C 2011 -165 Communication (04/14/2011) from the Chief of the Building Division, Department of Public Works, requesting Council approval to accept and expend moneys from a Kauai Island Utility Cooperative grant, to upgrade and expand the existing Energy Management System (EMS) at the Kapule Building in the Lihu`e Civic Center Complex, in the amount of $56,000.00, which would subsidize the County's $60,000.00 investment to fund this portion of the work: Mr. Bynum moved to approve C 2011 -165, seconded by Ms. Yukimura. Council Chair Furfaro: Is there anyone in the audience that wishes to speak on this? No? Council Clerk, I want you to know that I'll be approving this request, but I would like to get a briefing in my office. I just want to make sure that if this energy management system is similar to the one that we have at civil defense and I would like to know its final capability. So if you could arrange that for me? And I will be supporting this item now, though. Mr. Nakamura: So noted, Mr. Chair. Council Chair Furfaro: Councilwoman Yukimura. Ms. Yukimura: Yes, I appreciate your follow -up on this and I'm presuming here that it would subsidize the county's $60,000.00 investment means that we would only pay $4,000 or does it mean that it adds? Council Chair Furfaro: I read this as the system is $116,000. Ms. Yukimura: Oh, okay. Council Chair Furfaro: And that they're giving us 56 or the 116. Ms. Yukimura: Okay, thank you for the explanation, too bad. COUNCIL MEETING -87- May 18, 2011 Council Chair Furfaro: And you're welcome to join me when they schedule that, I'll have them contact you if you'd like? - - Ms. Yukimura: Okay, thank you. Council Chair Furfaro: We'll call for the vote. Mr. Nakamura: There's a motion and a second to approve, Mr. Chair. Council Chair Furfaro: All those in favor please. The motion to approve C 2011 -165 was then put, and unanimously carried. Council Chair Furfaro: Thank you. Next item. Mr. Nakamura: We're on communication C 2011 -166. C 2011• -166 Communication (04/21/2011) from the Chief of Police, requesting Council approval to accept and utilize a vehicle acquired through the Asset Forfeiture Program, that replaces a previously disposed vehicle that had been assigned to Vice /Narcotics Unit and will be used for law enforcement purposes: Mr. Bynum moved to approve C 2011 -166, seconded by Ms. Yukimura, and unanimously carried. Mr. Nakamura: On the bottom of page 4, Council Chair, a communication for approval from the fire chief. C 2011 -167 Communication (04/25/2011) from the Fire Chief, requesting Council approval to apply for, receive, and expend the 2012 State of Hawaii, Department of Transportation, Highway Safety Grant, of $36,057.95 to purchase necessary equipment for the firefighters to ensure scene safety and to safely mitigate vehicle accidents: Ms. Yukimura moved to approve C 2011 -167, seconded by Mr. Chang, and unanimously carried. Council Chair Furfaro: Thank you very much. Mr. Nakamura: We're on the top of page 6, Council Chair, top of page 5, my apologies, on a communication for approval, C 2011 -168. C 2011 -168 Communication (04/27/2011) from the Prosecuting Attorney, requesting Council approval to apply for, receive, and expend $8,990.00 of federal Highway Safety funds from the State of Hawaii, Department of Transportation, to be used for travel, internet access, and training: Ms. Yukimura moved to approve C 2011 -168, seconded by Mr. Bynum, and unanimously carried. Council Chair Furfaro: Thank you. Mr. Clerk, next item. Mr. Nakamura: Next item for approval is communication C 2011 -169. C 2011 -169 Communication (04/27/2011) from the Director of Housing, requesting Council approval to apply for, receive, expend, and indemnify $133,000.00 in grant money for two Housing Choice Voucher Family Self- Sufficiency Program Coordinators' salaries ($69,000 Specialist II and $64,000 - COUNCIL MEETING -88- May 18, 2011 Specialist I) from the Ms. Yukimura moved unanimously carried. U.S. Department of Housing and Urban Development: to approve C 2011 -169, seconded by Mr. Kuali`i, and Council Chair Furfaro: Thank you. Next item? Mr. Nakamura: Next matter for approval is communication C 2011 -170. C 2011 -170 Communication (04/28/2011) from the Director of Parks & Recreation, requesting Council approval of the agreement between the County of Kauai and First Hawaiian Bank, regarding the installation of an ATM machine at the Wailua Golf Course, for the convenience of the golfers and patrons of the Wailua Golf Course, the restaurant and the pro shop: Ms. Yukimura moved to approve C 2011 -170, seconded by Mr. Kuali`i. Council Chair Furfaro: Any testimony from the audience? Seeing none, members, any testimony before I call for the vote? Yes. Mr. Chang: Thank you, Chairman. I just wanted to say I believe this ATM machine is long overdue and I'm not really sure if there ever was an ATM, but this is certainly going to help the golf course with our efforts to attract more visitors and the local residents. And I also do want to say the golf pro shop looks great. I haven't yet been to the restaurant, but I understand that they're up and going, so I believe that this ATM machine will be very, very good for the location and I'm glad that we finally have it. I just wanted to make a little note with Councilmember Bynum, our parks and recreation chair, and also note to the administration when we do finally install it, I just want to make sure that we do have it updated on our website just to let everyone know that the communication is out there that there is an ATM there at the golf course. Thank you very much. Council Chair Furfaro: I can go a little further if you'd like. I'll have them contact you. You can be the first to use it in the event you may be wanting to buy a little lunch or something, so. Mr. Chang: My middle name is actually Alas - Kalas. Council Chair Furfaro: Thank you very much for the recognition of the upgrades at the pro shop. This should be very mutually beneficial for the shop and any amenities bought for the golfers. Okay, on that note, all those in favor, signify by saying aye. The motion to approve C 2011 -170 was then put, and unanimously carried. Council Chair Furfaro: We have completed the resurfacing list earlier. Mr. Nakamura: Next matter for approval is a Legal Document, Council Chair, attached to C 2011 -172. LEGAL DOCUMENT: C 2011 -172 Communication (04/18/2011) from the Environmental Services Management Engineer, Department of Public Works, transmitting for Council consideration and approval of the following from the State of Hawaii Agribusiness Development Corporation: COUNCIL MEETING -89- May 18, 2011 Right -of -Entry Agreement to the portion of property located at Kalepa, Kauai, described as TMK: (4) 03- 009 -002 (portion), to the County of Kauai, to conduct an environmental assessment related to the construction and operation of a landfill, and to indemnify Agribusiness Development Corporation as contained in paragraph no. 6 of the Agreement Mr. Bynum moved to approve C 2011 -172, seconded by Ms. Yukimura, and unanimously carried. Council Chair Furfaro: Thank you. We're going to go to claims now. Mr. Nakamura: Next matter is a Claim communication C 2011 -173. CLAIM: C 2011 -173 Communication (03/29/2011) from the County Clerk, transmitting a claim filed against the County of Kauai by USAA, as subrogee for John Wetzler for damage to an Avis rental vehicle driven by the insured, pursuant to Section 23.06, Charter of the County of Kauai: Mr. Bynum moved to refer C 2011 -17 3 to the County Attorney's Office for disposition and/or report back to the Council, seconded by Ms. Yukimura, and unanimously carried. Council Chair Furfaro: Thank you. We're on to committee reports. I guess for the first item, do we have to have a recusal here? Mr. Chang? Mr. Chang: I will be recusing myself, Mr. Chair Council Chair Furfaro: Okay, we'll call you back momentarily. Okay, you want to read that for us? Mr. Chang was noted recused for Committee Report No. CR -EDR 2011 -04. COMMITTEE REPORTS: Economic Development & Renewable Energy Strategies Committee A report (No. CR -EDR 2011 -04) submitted by the Economic Development & Renewable Energy Strategies Committee, recommending that the following be approved on second and final reading: "Bill No. 2404 - AN ORDINANCE AMENDING ORDINANCE NO. B- 2010 -705, AS AMENDED, RELATING TO THE OPERATING BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII, FOR THE FISCAL YEAR JULY 1, 2010 THROUGH JUNE 30, 2011, BY REVISING THE SURPLUS AND APPROPRIATIONS ESTIMATED IN THE GENERAL FUND (Kauai Marathon grant $150,000.00)," Mr. Bynum moved for approval of the report, seconded by Ms. Yukimura, and unanimously carried. (See later for Bill No. 2404) Mr. Chang was noted present. COUNCIL MEETING -90- May 18, 2011 Public Safety & Environmental Services Committee A report (No. CR -PSE 2011 -06) submitted by the Public Safety & Environmental Services Committee, recommending that the following be approved on second and final reading: "Bill No. 2405 - AN ORDINANCE AMENDING ORDINANCE NO. B- 2010 -705, AS AMENDED, RELATING TO THE OPERATING BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAFI, FOR THE FISCAL YEAR JULY 1, 2010 THROUGH JUNE 30, 2011, BY REVISING THE SURPLUS AND APPROPRIATIONS ESTIMATED IN THE GENERAL FUND (Kauai Fire Department rescue trucks $260,538. 00)," Mr. Bynum moved for approval of the report, seconded by Ms. Yukimura, and unanimously carried. (See later for Bill No. 2405) Finance/Parks & Recreation/Public Works Programs Committee A report (No. CR -FPP 2011 -03) submitted by the Finance/Parks & Recreation/Public Works Programs Committee, recommending that the following be received for the record: "FPP 2011 -02 Communication (05/02/2011) from Councilmember Yukimura, requesting agenda time for Deb Hubsmith, Director of the National Safe Routes to School (SRTS) partnership, to provide a briefing on the Safe Routes to School Program," Mr. Kuali`i moved for approval of the report, seconded by Ms. Yukimura, and unanimously carried. A report (No. CR -FPP 2011 -04) submitted by the Finance /Parks & Recreation/Public Works Programs Committee, recommending that the following be approved on second and final reading: "Bill No. 2406 - A BILL FOR AN ORDINANCE TO AMEND CHAPTER 23, ARTICLE 3, SECTION 23 -3.2 OF THE KAUAI COUNTY CODE 1987, RELATING TO PEDDLERS AND CONCESSIONAIRES," Mr. Kuali`i moved for approval of the report, seconded by Ms. Yukimura, and unanimously carried. (See later for Bill No. 2406) Council Chair Furfaro: Thank you, next item. Mr. Nakamura: Next matter for approval are Resolutions. First resolution is Resolution No. 2011 -54. RESOLUTIONS: Resolution No. 2011 -54, RESOLUTION REPEALING AN EXISTING CROSSWALK ON RICE STREET FRONTING THE ISENBERG MEMORIAL, LIHU`E DISTRICT, COUNTY OF KAUAI: Mr. Bynum moved to adopt Resolution No. 2011 -54, seconded by Mr. Kuah'i. Council Chair Furfaro: Any testimony from the public? No, thank you. Members? If not, this resolution is a roll call vote, please. COUNCIL MEETING - 91 - May 18, 2011 Mr.' Nakamura: Councilmembers... Council Chair Furfaro: Excuse me. Mr. Chang: You know I just noticed something and I may be wrong, but is this the ... I know where the crosswalk is, but just for the purposes of... is this the Isenberg Memorial or is that William Hyde Rice? Council Chair Furfaro: You're talking about the memorial that we're describing that we have the appropriate name on it? Mr. Kuah'i: Rice is by Kip u ... Hyde Rice is by Kipu. Council Chair Furfaro: The Rice Memorial is by Puhi? ( ?): Kip u- Council Chair Furfaro: Kipu, okay. Mr. Nakamura: Council Chair, just on the exhibit attached to Resolution No. 2011 -54, that lot is shown as the Isenberg Cemetery lot. Council Chair Furfaro: Okay? Mr. Chang: Thank you. (Inaudible.) Council Chair Furfaro: There is duplicated language from a previous resolution as well and thank you very much for the quick geography, gentlemen, thank you. Mr. Nakamura: Roll call, Mr. Chair. The motion to adopt Resolution No. 2011 -54 was then put, and carried by the following vote: FOR ADOPTION: Bynum, Chang, Kuah'i, Nakamura, TOTAL — 6, Yukimura, Furfaro AGAINST ADOPTION: None TOTAL — 0, EXCUSED & NOT VOTING: Rapozo TOTAL —1. Mr. Nakamura: Six ayes, Mr. Chair. Council Chair Furfaro` Thank you, next resolution. Mr. Nakamura: Next resolution is Resolution No. 2011 -55. Resolution No. 2011 -55, RESOLUTION ESTABLISHING NO- PARKING AT ANY TIME AND TOW AWAY ZONE ALONG A PORTION OF WEKE ROAD, HANALEI DISTRICT: Mr. Chang moved to adopt Resolution No. 2011 -55, seconded by Ms. Yukimura, and carried by the following vote: COUNCIL MEETING -92- FOR ADOPTION: Bynum., Chang, Kuah'i, Nakamura, Yukimura, Furfaro AGAINST ADOPTION: None EXCUSED & NOT VOTING: Rapozo Mr. Nakamura: Council Chair Furfaro: Mr. Nakamura Six ayes, Mr. Chair. Thank you. On Resolution 2011 -56. May 18, 2011 TOTAL — 6, TOTAL — 0, TOTAL —1. Resolution No. 2011 -56, RESOLUTION ESTABLISHING A SCHOOL BUS STOP ON LOHE ROAD, KUKUIOLONO ESTATE SUBDIVISION, KOLOA DISTRICT, COUNTY OF KAUAI: Mr. Kuah'i moved to adopt Resolution No. 2011 -56, seconded by Ms. Yukimura, and carried by the following vote: FOR ADOPTION: Bynum, Chang, Kuah'i, Nakamura, TOTAL — 6, Yukimura, Furfaro AGAINST ADOPTION: None TOTAL — 0, EXCUSED & NOT VOTING: Rapozo TOTAL —1. Mr. Nakamura: Six ayes, Mr. Chair. Council Chair Furfaro: Next resolution. Mr. Nakamura: Next resolution for approval is Resolution No. 2011 -57. Resolution No. 2011 -57, RESOLUTION AMENDING RESOLUTION NO. 2011-34 ESTABLISHING NO- PARKING AT ANY TIME ALONG PORTIONS OF PO`IPU ROAD, KOLOA DISTRICT: Ms. Yukimura moved to adopt Resolution No. 2011 -57, seconded by Mr. Chang, and carried by the following vote: FOR ADOPTION: Bynum, Chang, Kuali`i, Nakamura, Yukimura, Furfaro AGAINST ADOPTION: None EXCUSED & NOT VOTING: Rapozo Mr. Nakamura: Six ayes, Mr. Chair. Council Chair Furfaro: Next item. Mr. Nakamura: Next resolution for No. 2011 -58. TOTAL — 6, TOTAL — 0, TOTAL —1. approval is Resolution Resolution No. 2011 -58, RESOLUTION SUPPORTING THE SAFE ROUTES TO SCHOOL PROGRAM: Ms. Yukimura moved to adopt Resolution No. 2011 -58, seconded by Mr. Kuah'i, and carried by the following vote: FOR ADOPTION: Bynum, Chang, KuWi, Nakamura, TOTAL — 6, Yukimura, Furfaro AGAINST ADOPTION: None TOTAL — 0, EXCUSED & NOT VOTING: Rapozo TOTAL — 1. Mr. Nakamura: Six ayes, Mr. Chair. COUNCIL MEETING -93- May 18, 2011 Council Chair Furfaro: Thank you. - - - - - Mr. Nakamura: Next resolution for approval is Resolution No. 2011 -59. Resolution No. 2011 -59, RESOLUTION APPROVING THE ISSUANCE OF GENERAL OBLIGATION REFUNDING BONDS TO REFUND ALL OR A PORTION OF THE OUTSTANDING GENERAL OBLIGATION BONDS, SERIES 2001A PREVIOUSLY ISSUED BY THE COUNTY OF KAUAI: Mr. Bynum moved to adopt Resolution No. 2011 -59, seconded by Ms. Yukimura, and carried by the following vote: FOR ADOPTION: Bynum, Chang, Kuali`i, Nakamura, TOTAL — 6, Yukimura, Furfaro AGAINST ADOPTION: None TOTAL — 0, EXCUSED & NOT VOTING: Rapozo TOTAL —1. Mr. Nakamura: Six ayes, Mr. Chair. Council Chair Furfaro: Thank you. Mr. Nakamura: Next matter is a Bill for First Reading. This is Proposed Draft Bill (No. 2408). BILL FOR FIRST READING: Proposed Draft Bill (No. 2408) — A BILL FOR AN ORDINANCE AMENDING CHAPTER 5A, KAUA`I COUNTY CODE 1987, RELATING TO HOME EXEMPTIONS Council Chair Furfaro: Thank you. Ms. Yukimura: Mr. Chair? Council Chair Furfaro: I do want to say to the members that we're trying to make this possible date more urgently expedited than what is reflected here, so may i have a motion. Mr. Bynum moved for passage of Proposed Draft Bill (No. 2408) on first reading, that it be ordered to print, that a public hearing thereon be scheduled, and that it thereafter be referred to the Finance /Parks & Recreation/Public Works Programs Committee, seconded by Ms. Yukimura, and carried by the following vote: FOR PASSAGE: Bynum, Chang, Kuali`i, Nakamura, TOTAL — 6, Yukimura, Furfaro AGAINST PASSAGE: None TOTAL — 0, EXCUSED & NOT VOTING: Rapozo TOTAL —1. Mr. Nakamura: Six ayes, Mr. Chair. Council Chair Furfaro: Thank you very much. Mr. Nakamura: Next matter is a Bill for Second Reading. This would be Bill No. 2405. COUNCIL MEETING -94- May 18, 2011 Mr. Chang: Mr. Clerk, excuse me. Do I need to recuse myself? Okay, I'm going to recuse myself for this. Mr. Nakamura: Actually, the Kauai Marathon vote, Council Chair, we already took the vote on that one. Mr. Bynum: We already did it. Mr. Nakamura: Yeah, so we're on 2405. And you were recused on the vote for the Kauai Marathon. Ms. Yukimura: So this one is for the fire trucks. Mr. Nakamura: We're on Bill for Second Reading... Council Chair Furfaro: 2405 is what we're on for the fire trucks. Am I correct? Mr. Nakamura: Correct. Council Chair Furfaro: Thank you. Mr. Nakamura: We're on Bill 2405, Council Chair. BILL FOR SECOND READING: Bill No. 2405 — AN ORDINANCE AMENDING ORDINANCE NO. B- 2010 -705, AS AMENDED, RELATING TO THE OPERATING BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII, FOR THE FISCAL YEAR JULY 1, 2010 THROUGH JUNE 30, 2011, BY REVISING THE SURPLUS AND APPROPRIATIONS ESTIMATED IN THE GENERAL FUND (Kauai Fire Department rescue trucks $260,538.00): Mr. Chang moved to adopt Bill No. 2405 on second and final reading, and that it be transmitted to the Mayor for his approval, seconded by Mr. Bynum, and carried by the following vote: FOR ADOPTION: Bynum, Chang, Kuah'i, Nakamura, TOTAL — 6, Yukimura, Furfaro AGAINST ADOPTION: None TOTAL — 0, EXCUSED & NOT VOTING: Rapozo TOTAL —1. Mr. Nakamura: Six ayes, Mr. Chair. Council Chair Furfaro: Thank you. Mr. Nakamura: Last bill for second reading is Bill No. 24... oh, I'm sorry, we did ... I'm sorry, Mr. Chair, we're down to the executive session. Council Chair Furfaro: Yes, I think if we could have the county attorney up, please? There being no objection, the rules were suspended. AL CASTILLO, JR., County Attorney: Council Chair, councilmembers, good evening, Al Castillo, county attorney. The next matter for your consideration is ES -487. COUNCIL MEETING -95- May 18, 2011 ES -487 Pursuant to Haw. Rev. Stat. § §92 -4 and 92- 5(a)(4) and (8); and Kauai County Charter §3.07(E), the purpose of this executive session is to consult with the Council's legal counsel to receive legal updates, overviews, and recommendations for purposes of obtaining Council approval of proposed settlement of a workers' compensation claim, and evaluate employees' ability to return to work. This deliberation and/or decision making involves matters that require the consideration of information that must be kept confidential as, inter alia, it concerns significant privacy interests. The significant privacy interests relate to a medical history, diagnosis, condition, treatment, or evaluation, and which, pursuant to state or federal law, including Health Insurance Portability and Accountability Act, are protected from disclosure. The meeting was called back to order, and proceeded as follows: Council Chair Furfaro: Thank you. Ms. Yukimura moved to convene in executive session, seconded by Mr. Bynum. Ms. Yukimura: Mr. Chair? Council Chair Furfaro: Council Vice Chair? Ms. Yukimura: Yes, I just want to commend the county attorney for a very well written posting for executive session. Council Chair Furfaro: Thank you very much; On that compliment, I will second it. This will come to a conclusion of our open meeting on May 18th and members, I want to thank you very much for the attention and how we handled items today. It was a very long agenda. But now... Ms. Yukimura: We have to vote. Council Chair Furfaro: Yes, okay, I understand. I just wanted to thank everybody because we're going to go upstairs so I want to thank you all. On that note, may I call for the... . Mr.. Chang: Mr. Chair? Council Chair Furfaro: Yes. Mr. Chang: Can I just have a moment of personal? Council Chair Furfaro: Right after we call for the vote, how's that? Mr. Chang: Can we call for the vote? Council Chair Furfaro: Yes. That's where I was at. Everybody is so anxious with my deliberation here, so. Okay we are voting on this executive session, ES -487. The motion to move into executive session was then put, and unanimously carried. COUNCIL MEETING -96- May 18, 2011 Council Chair Furfaro: Thank you. Mr. Chang, we'll now recognize you on a separate item as a personal privilege. Mr. Chang: Thank you. I want to take this opportunity to thank Councilmember Nakamura for this beautiful lei. I was admiring the lei that she gave to our Lieutenant Governor and I kind of looked and said, wow, something like that would match my shirt and I was having a pretty tough morning. And so she gave that to me and lifted my spirits in the spirit of aloha here at our council chambers and I would like to thank Councilmember Nakamura and specifically to thank your neighbor for making this for you. Ms. Nakamura: That would be Elaine Tamura. Mr. Chang: Elaine Tamura, thank you, Elaine Tamura. And also I just wanted to say, Chair, I agree with you it was a great day today as we all were mentioning what a long day we had. Earlier in the day both Senator Kouchi and Representatives Morikawa and Tokioka said that they normally, during budget session, went till 5 a.m., so we still got 12 more hours to go if we were on that schedule. Thank you, Chair. Council Chair Furfaro: And on that note, I want you folks also to know that frugal Councilmember Chang did buy me breakfast the other morning, so thank you very much. There being no objection, the meeting was recessed at 5:06 p.m. The meeting was called back to order at 5:27 p.m., and proceeded as follows: ADJOURNMENT. There being no further business, the meeting was adjourned at 5:27 p.m. Respectfully submitted, PETER A. NAKAMURA /wa County Clerk ATTACHMENT NO. 1 (MAY 18, 2011) FLOOR AMENDMENT Introduced By: Nadine K. Nakamura Bill No. 2404, Relating to the Kauai Marathon Grant Amend Bill No. 2404 to read as follows: "SECTION 1. That pursuant to Sec. 19.10A and Sec. 19.07B of the Charter of the County of Kauai, as amended, Ordinance No. B- 2010 -705, as amended, relating to the Operating Budget of the County of Kauai, State of Hawaii, for the fiscal year July 1, 2010 through June 30, 2011, be hereby amended as follows: The sum of [$150,000.00] $100,000.00 by revising the surplus and appropriations estimated in the General Fund, be and is hereby appropriated for the following purpose: KAUAI MARATHON GRANT [$150,000.00] $100,000.00 SECTION 2. This Ordinance shall take effect upon its approval." (Material to be deleted is bracketed. New material to be added is underscored.) (V: \CS OFFICE FILES \RESOLUTIONS \2010 -2012 term \FA Bill 2404 Kauai marathon (Nakamura) 5- 18- 2011.doc) 1 c�� 4 -1 GEC ►'�� � � ` A+ � -(8 -d-O (( C+,c ( �