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HomeMy WebLinkAbout06-23-2010 Council Meeting Minutes COUNCIL MEETING June 23, 2010 The Council Meeting of the Council of the County of Kauai was called to order by the Council Chair at the Council Chambers, 3371-A Wilcox Road, Lih&e, Kauai, on Wednesday, June 23, 2010 at 9.10 a.m., after which the following members answered the call of the roll. Honorable Tim Bynum Honorable Dickie Chang Honorable Jay Furfaro Honorable Daryl W Kaneshiro Honorable Lani T Kawahara Honorable Bill "Kaipo" Asing, Council Chair EXCUSED- Honorable Derek S.K. Kawakami Chair Asing: Please note that Councilmember Kawakami is excused. He is attending a conference in Honolulu and councilmembers will be leaving tomorrow for that conference also. With that, can I have the first item please? PETER A. NAKAMURA, County Clerk: First item is the approval of the agenda. APPROVAL OF AGENDA. Mr Furfaro moved for approval of the agenda as circulated, seconded by Mr Chang, and unanimously carried. Chair Asing: Next item please. Mr Nakamura. Next matter is approval of the Minutes of the following meetings of the Council. MINUTES of the following meetings of the Council. Public Hearing of May 5, 2010 re. Bill No. 2356, Bill No. 2357, and Resolution No. 2010-33 Council Meeting of May 26, 2010 Public Hearing of May 26, 2010 re. C 2010-130 Special Council Meeting of June 16, 2010 Mr Chang moved for approval of the minutes as circulated, seconded by Mr Kaneshiro, and unanimously carried. Chair Asing: Next item please. Mr Nakamura. Mr Chair, at this time, there's been a request to take up on page 2 of the council's agenda, communication C 2010-165 COMMUNICATIONS. C 2010-165 Communication (06/09/2010) from Council Vice Chair Jay Furfaro, requesting the Administration's presence to discuss the status and update of the Host Community Benefits Program. COUNCIL MEETING -2- June 23, 2010 Chair Asing: Thank you. With that what I'd like to do is turn it over to Council Vice Chair Jay Furfaro. With that. Mr Furfaro: Thank you. Thank you very much, Chairman Asing. The intent that I have with this communication is first and foremost is to have an opportunity for the CAC to give us some testimony this morning prior to what I would hope would be a reappearance of this item on the July 28 calendar The general mission of the CAC and the roles and goals of the commission as selected by Mayor Carvalho is one that I would like to just have a little basic discussion on this morning with the committee and the committee members understanding that within the structure of their role and the administrative support able to be provided by the administration, this council is really looking for a final report and I've tentatively set the goal for that tentative report for July 28 in our meeting. I also have available to the councilmembers a copy which the staff put together chronologically demonstrating how everything has evolved in the committee thus forth, as well as with the last committee meeting copies, that I believe we have for February The goal of the CAC was certainly to develop a criteria and a list of specific projects in which financial funding for the benefits program could be finalized for the community and also our ability to look at that after we know that it has in fact been reviewed, discussed and finalized in a report that I'm anticipating for the July 28 date. There are some particular questions that we need to surface maybe today or maybe in the future as to the committee's.. the volunteer committee's management of the funds. There may be some legal questions or fiscal questions that deal with our role within our charter For me it's very clear that there are opportunities here for managing of grant moneys that might be distributed. But on the other hand, the reality and for the purpose of auditing, that is jurisdiction that is solely left with the body of the council by charter So, I would like to have an opportunity to get an overview as to what is being developed with the committee, a clear indication that it is my intent to have a final report presented to this council by July 28. You will also see in their meetings that they have already started to really digest the future of the committee, its role, its mission in their last set of minutes from February, and it's really a question as to after July 28, what now for the committee, where do they go from here. So, on that note, Mr Chair, I'm hoping that you would suspend the rules and allow those individuals that are here to give us their overview of the progression of the committee. Chair Asing: Thank you. With that, I am going to suspend the rules now and we'd like to have members of the public up, please. There being no objection, the rules were suspended. Chair Asing: Good morning. JOSE BULATAO, JR.. Good morning. Mr Furfaro: Good morning. Mr Bulatao: For the record, my name is Jose Bulatao, Jr I am. I serve as vice chairman of the Kekaha Host Community Benefit Fund CAC, but I am also a private citizen, a proud member and resident of the community of Kekaha, and a concerned citizen. And in this respect, I struggle with what is set upon me in terms of what sunshine law prevents me from doing as a member of a COUNCIL MEETING - 3 - June 23, 2010 CAC and I need to respect what the tenets of the sunshine law prevents me from doing in terms of making statements that may violate, if you will, the work or the duties and responsibilities of the service that I provide as a member of this committee. So, if at any time I may broach in areas that would be of concern legally, I would prevail upon the services of our county attorney to assist and help me in this regard because I certainly respect and the duties and responsibilities that are upon me. But I also want to speak from my heart about what is important to me, what is important to the community, and what the purposes and intents may have been from the point of view of the council of the County of Kauai and what the expectations may be of the community and of the residents about the entire aspect of having a host community benefit fund available to us to consider for the welfare and benefit of the citizens.. oh the residents rather of the community of Kekaha. So with that in mind, I would like to simply say that historically when the entire idea came about beginning with a meeting in August 2007, when the idea of a host community benefit fund was a possibility of an idea that could have been considered here on the island of Kauai, it opened an avenue of a revenue possibility that could be made available for the first time here in the island of Kauai for a community in closest proximity to the municipal landfill on the island of Kauai. Mr Nakamura. Three minutes, Mr Chair Chair Asing: Thank you. Go ahead. Mr Bulatao: And then we went through the historical aspect of establishing the community from the work that was done with the proposal by the administration and everything that transpired historically, which I do not have to go into. And if I can fast-forward quickly, it led to the establishment of the CAC that went through the process that has been challenging and has been the opportunity for us to struggle and to face the opportunities to see what can be done. And because we were the first. we are the first group to go through the process and there were no previous or pres. or precedence for us to fall back on, it was a challenging task for us to go through because we had no prior background to fall back on on how to go about doing what we did. But I would like to say this, that I think the efforts have been sincere. We may not have agreed on the things that we have done, but I think we have tried our very best to move forward in what we have tried to do But I also feel that in spite of what we have done, we need to keep in mind that the bottom line is that it is extremely important for us to keep our community residents front and center with the opportunity to be empowered to have the opportunity to participate, to have the opportunity to be involved in the decision-making process of what to do about this allocation. The County of Kauai so generously made this allocation available to the residents of the community of Kekaha and how wonderful that is. Now I feel that the opportunity should continue with the residents of the community of Kekaha directly and to that extent, the community organization by token of one of the recommendations that appeared in the handbook that appeared. that was given to us on the CAC that an option was if there is a community organization that has a non-profit status with the appropriate documentation that could work with the county to handle the fiduciary responsibilities, it could request for the money Mr Nakamura. Six minutes, Mr Chair Mr. Bulatao: And we do have a community organization with the appropriate documentation of a non-profit status. So, that option has been offered, but no official action has been taken so far Chair Asing: Okay, you want to wrap wrap it up, Jose. COUNCIL MEETING -4- June 23, 2010 Mr Bulatao: So, in conclusion, I hope that as we continue in the process that we explore that option and we give the community organization the opportunity to work with the county, to be front and center so that the community can be empowered to participate in the process. Thank you very much. Chair Asing: Thank you. Any questions? Councilmember Furfaro. Mr Furfaro: Yes, first of all, Jose, thank you very much for being here. Thank you for your work on the CAC, but I do want to go back and share with you how I see us structuring this piece going forward. It is. what I believe the mission of the CAC to actually as a group and body first to approve a general plan of where the intent is for the capital improvements to be spent and I think I have surmised that your Chairman, Mr Hee, is hopefully having something summarized for the committee first to approve before it comes before this body, and that's what I'm asking for in the July 28 date, that the summary and feedback that the community received, I guess, through a summary of questions of needs.. particular needs that the property.. I mean the community would like to see the money spent on comes to us in a final document on July 28 and I'm hoping that, you know, we can be target for that. Secondly, as it relates to funding, these are handled like CIP projects and it is not traditionally been my understanding that other than the appropriate fiscal accounting for the funds that are in this amount, that it has not been the practice of. from the both legal, financial and audit perspective that the county would then draw a check over to a non-profit organization. I think that only happens through the process of actually giving a grant, which I don't necessarily see this as a one- time project for Kekaha, but rather in answering the questions in your minutes, an ongoing process as funds will continue to go into that account as long as you are the host benefit community So, I will be sending over two questions to the county attorney Number one, the legal questions as it relates to fiscal accountability, staying in accounting, and secondly if any of the projects that come in on the final list actually be considered grant projects. So that'll be a two-part question going forward, but I don't think the body is intended to be participating in discussing the final list. I think that totally comes from your community and I've expressed such through Beth Tokioka's office on to Mr Hee. We want to see a final list on July 28 that through a process of elimination or prioritizing the projects, Kekaha community agrees with that. But L. I do want to make it very clear that I think from a procedural and an audit position, no different than we acquired recently for Black Pot. It is the responsibility of this county and this council to distribute those funds once we agree on the project list. But I will raise those two questions. I also do want to say that there is kind of a draft proposed list that I've included for everyone. I believe it was from your February lst meeting. Mr Bulatao: Yes, that's correct. Mr Furfaro: And that met all the sunshine goals as well as the way we posted this item today So I think within reason and I do recognize that the county attorney is here and he could raise a flag if we stray anywhere, but since this is a posted meeting regarding an overview of the process and where we're at now, I think we can speak pretty freely on the project list as well. So on that note, is there anything you would like to add to the council at this point regarding the February 1, meeting and the ongoing dialogue on the list of projects that you've identified. Mr Bulatao: Not so much that, but interestingly as you were talking, what really led to a lot of the confusion in terms of how we came or arrived COUNCIL MEETING -5- June 23, 2010 at where we are at at the moment, is because we struggled with how we were dealing with what we were dealing with because of how things began with in the first place. When the ordinance was passed at the very beginning of an allocation of $650,000 00, it came to us with the information that the allocation went to the Solid Waste Department rather than to the community of Kekaha. And when the question was raised at the CAC as to whether or not the. why the allocation went to the Solid Waste Department, there was no clear explanation to us at that time why it went there. Secondly, the question was raised if that allocation of $650,000 00 was earning interest, and if it were, where is that interest and who does that interest belong to because there was no clear indication as to what that interest earned may be and who that interest belongs to. We still have no clear indication on that. Mr Furfaro: Mr Bulatao, is it. I think that was my email that responded to the best of my knowledge and you know for six years I was the Finance Chair for this council. The accounts, when we put the money in a CIP, it is my understanding and I think I might have communicated that that it does not earn interest. That is my understanding. Now, I was hoping if there was a difference of opinion by the administration in my response to you, they would have responded to you either confirming or correcting me. But it is my understanding annually we put the money in a CIP earmarked account and each year as we appropriate additional moneys, it is very clear; it's summarized on our CIP spreadsheet. So I think subsequently now that original fund of $650,000 is now at $810,000 Mr Bulatao: That's correct. Mr Furfaro: And none of it reflects any interest. But that is my interpretation and you have gotten no other confirmation of that from the administration? Mr Bulatao: No. Mr Furfaro: I'm sorry So mine was the only communication to you? Mr Bulatao: Yes. Mr Furfaro: I'm sorry Okay, okay, well, I'll ask to get that confirmation when I ask the question about our legal position for the purposes of audit and so forth. You should get a summary of those CIP spendings and/or contributions. But it's my understanding for the purposes of audit, those funds stay within the Finance Department of the County of Kauai and do not earn interest. I will get a written clarification and hopefully have something back by the July 28 meeting. Mr Bulatao. And finally, in. in our attempt to ascertain and determine what would be the wisest and best way to make recommendations of expending some of this money, when we came with the presumed recommendations coming from the survey that we had conducted, when we revisited the results of the survey, we questioned the way the survey was conducted and how the survey was being interpreted, and there were some of us who wanted to bring the survey back for further dialogue and review with our community residents so that there would be a clear understanding as to whether or not the outcomes of the survey were the true reflections of what the community residents really wanted. Let me clarify The leading survey outcome was improvement at the Kekaha Beach Park. That COUNCIL MEETING -6- June 23, 2010 was what was number one Improvement at the Kekaha Beach Park, it was interpreted to be build a bathroom. The reaction to that was, isn't building a bathroom a county or a state responsibility instead of a community responsibility? Who should financially be responsible for that? It wasn't clearly delineated. So we were struggling with that. We still are struggling with that, so we do not know whether or not this will emerge as a final recommendation as a for instance. Mr Furfaro: I will add a fourth question to my communique to the administration. You know, obviously during these tough economic times, the council looks and approves the budget under the leadership of Mr Kaneshiro, and that's how we arrived at the number that was contributed for this upcoming year The reality of how you prioritize those I would think you do have legal counsel participating in your activity at each meeting? Mr Bulatao: Yes, we do. Mr Furfaro: You do? Okay I will ask the question of the legal department to give you a better definition of that. Obviously in very good years, the reality is public improvements can be made within the public works department. In bad years, when finances are difficult, it doesn't change the contribution that's earmarked for you, but I would think there should have been some kind of explanation.. talking about how these priorities are established. You know, we. we too had to make some tough decisions in other parts, but it is the CAC that then decides what do you want to accelerate regardless of the county's ability with the money earmarked solely for your community Mr Bulatao: But. but I also feel that it should be the community's decision and not the CAC's personal interpretation of what the community may decide. Mr Furfaro: I understood that second portion of the question, but you know, that's. that's part of stepping forward in a volunteer position that those calls will necessarily need to be in a final report which we're looking for for July based on the fact that there is agreement by the majority of the CAC members on where you want that money earmarked and the documentation as it's spent and controlled by the finance department. So that is the mechanism for the CAC to make the final determination and it is clearly part of volunteering to be a leader on that committee and I appreciate you serving. But those are the decisions that the committee has to make and how you balance that out between community feedback and how you see the priorities. That's the best answer I can give you for now, so. Mr Bulatao: But our rec.. Mr Furfaro: It's kind of like what we do here. Mr Bulatao: Yes. Mr Furfaro: I mean, we're not going to please everybody all of the time, but we try to do the best. Mr Bulatao: But having said that. having said that, our records show in our minutes that when that was discussed officially in our minutes, when it came up in terms as to whether or not the committee wanted to take this up officially, it was brought up in motion and the motion did not pass. Mr Furfaro: That's a good point. COUNCIL MEETING -7- June 23, 2010 Mr Bulatao: And then we went ahead to discuss it because it was in the agenda and because it was in the agenda, we went on ahead to discuss it for the purpose of discussion, but not for the purpose of making this an official action because it did not pass, and it is a matter of official action. Mr Furfaro: I hear what you're saying and being that, you know, we're the body that's looking for the final report, I can appreciate your comments about it not passing and recorded as such, but before we leave today, may I ask, did you as an officer of the committee, do you have the Five-Year CIP Plan for the County of Kauai so you could see what is already in the county's plan and that it doesn't conflict with the benefits that you would like to see. If you don't, I will give you one of those documents. Mr Bulatao: I would appreciate having. Mr Furfaro: I will get it to you. Mr Bulatao: Thank you. Mr Furfaro: I have no more questions. Chair Asing: Okay Any other questions (inaudible)? Mr Bynum. I just have one. Chair Asing: Councilmember Bynum. Mr Bulatao. Yes. Mr Bynum. Specifically, Jose, what was it that didn't pass? The priority that the committee never officially passed on a priority, is that what didn't pass? Mr Bulatao: What specifically did not pass was when there was the presentation of the five items that emerged as the five leading items that were in. on the survey to be put forward for recommendation to the mayor and it was seconded. It. those five leading recommendations did not pass. Mr Bynum. Thank you. Thanks for that clarification. Chair Asing: Okay Any other questions? If not, thank you. Can I have the next speaker please? Barbara. ROSELIND B. BULATAO-FRANKLIN Hi, good morning. Councilmembers: Good morning. Ms. Bulatao-Franklin. For the record, my legal name is really Roselind and interestingly I got a call from a friend who said you know, you're not registered to vote, and I said but I've never missed voting and she said but you're not on the list, and I said oh, that's because my name is Roselind Barbara Bulatao-Franklin. It's a long (inaudible). You only know me as Bobbie. But I'm glad to be here and I'm glad to see all of you. I just want to share very briefly just a couple of things that I felt very uncomfortable with regarding what's been happening about the CAC, whole project. The survey really bothered me. The survey was only given to homeowners, not residents. And only one per household. You know Jose is two years older than I am. I'm 72, but the house is in my name. So I could fill out COUNCIL MEETING -8- June 23, 2010 that survey He was not privileged to have one. Now on Saturdays our church delivers 18 lunches to the elderly housing, many of whom grew up and maybe were born right in Kekaha and even in Waimea, but because they do not own a home, none of them could also fill out that survey So it bothered me terribly when the survey finally did come out and I looked at the questions and as you look at those state and county facilities that were listed, nothing was prefaced to say that these are state and county facilities. Would you, as a community resident, be willing to expend those funds for such projects? So as you. if you have not seen the survey, I hope you can get copies of it because I think it would surprise you. And you know politically, many of us have been involved in many surveys and there's always some measuring level that you want to look at. Why are you asking this question and what are you measuring and what kind of conclusion do you think we should come to, if any? And I think that that survey is very questionable. Last of all, on the five projects listed and further discussed and then put on the. because I'm a private citizen of Kekaha, but I have tried to make as many of the CAC meetings as possible because it's open to the public. September 14, 2009 and I taught parliamentary procedure, you know, with Phil Tacbian. Phil Tacbian and Sam Miyoshi were two of the only two certified parliamentarians that we had on the island of Kauai. Now when you vote and there's a lack of a second or a second, but the motion fails, it fails. Why do you continue to put this on the agenda to ask for ideas of how much do you think this toilet might cost? Mr Nakamura. Three minutes, Mr Chair Ms. Bulatao-Franklin. And it doesn't say who's going to be responsible for the accessibility for the handicapped. Who's going to maintain it? Who's going to clean it? Do all of those funds then come back as a CAC responsibility funding for a community project? So that's all I wanted to say Nice seeing all of you. Thank you. Chair Asing: Thank you. Mr Furfaro: Thank you, Barbara. Chair Asing: Is there anyone else? MARY JEAN BUZA-SIMS: Good morning, my name is Mary Jean Buza- Sims. I'm president of the Kekaha Community Association. Mr Furfaro: Good morning. Ms. Buza-Sims: And I just have one. I appreciate you having us on the agenda this morning, but it is of great concern to many of our residents, renters and homeowners, that. that the survey went out to only a few people and not everybody who resides in Kekaha. And the original intention that we. of the CAC's role was thought to be one of developing a process in which the funds would be expended, not to come up with a list of projects because we were looking at what happened on Oahu with Kahuku and their HCB funds in terms of RFPs that came from the community and not from a committee to determine the projects that were going to be funded through the HCB funds. So that's one question we had as a community association that it was to determine the process in which. whether or not the community holds the funds because it was in the council saying that it would come directly to the community that was another thought we had. So, I encounter people every day in the community asking oh, we never going to get those funds, you're not going to see it. So whichever form it takes, whether it's through RFVPs is not an issue, but the big issue and this. I'll leave this with the County COUNCIL MEETING -9- June 23, 2010 Council is we had requested the CAC to take back. send back the final list. priority list to the community for verification and input again because we felt it was not a total reflection of the community's needs really It's not really a total reflection or true reflection, I feel, and the CAC said no. So, you know, what does that say in terms of the residents' opinion or view on how their opinions and their view about what they want in their community and what the needs are. So that's. that's the big question right now and I really feel that the list should go back to the community once more before it is a final recommendation to the Mayor Thank you. Chair Asing: Thank you. Any questions, councilmembers? If not, thank you very much. Is there anyone else who wants to speak? Good morning. EVELYN OLORES: Good morning, councilmembers. Evelyn Olores here and I was a member of the CAC, but more concerned I'm a member of the Kekaha community And what I want you to know is I was one of those that went house-to-house to bring out the survey and being that the survey was so vague, you know what, there was no explanation to people as to the number of items on this survey and a lot of feedback I got from the community was isn't this the county's kuleana or isn't this the state's kuleana or this is what we want, you know And there was hardly anything that didn't come up addressing the county or the state in all the projects that was listed in that particular survey More so, the survey was sent to the head of the household, you know, and I have my grandkids living with me. They're not the head of the household, but grandma, we want the skateboard rink; grandma, we want the swimming pool, we want more playgrounds for the kids, you know And those were the lowest in the priority of the surveys when the final five was voted on in our committee, you know So, what I'm here to say is, you know, I want all of you to look at all the items on the survey because there's lots of things that the community is concerned about and one thing I'm concerned about in Kekaha especially being that we are in the tsunami zone, I'm looking for something where the community can go, a corridor or a piece of land where the kids can finally go for evacuation purposes come time for tsunamis or whatever alerts we may be. You know, right now we have Kekaha School, St. Theresa's School, we have the Kanaka School and the two Niihau Schools. You know, that's over 500 kids that walk about a quarter mile just below the KSke`e Road station, you know Now, I'm looking at if we do have an emergency alert, you know, there's no place for 500 cars to go up there and pick up their kids, you know So this was a big concern when I went house-to-house looking for dropping off the survey, so these are things that, you know, if it's going to take us 10 years to build just a place where if the kids have to go for evacuation, you know, right now Kekaha School, as far as I know, the kids walk in their in their evacuation purposes they carry a bag of water a small snack and some papers in a backpack. Now, if they had to stay there for more than four hours, there's no covering; there's no bathroom sites; there's not enough road opening for parents to go there to pick up their kids. So that's really a big concern of Kekaha, you know, and. Mr Nakamura. Three minutes, Mr Chair. Ms. Olores: I belong to the CERT program that the Mayor first opened. In fact I was in the second program that we had on the Westside and we have quite a bit of CERT people and their concern as to where are we going, you know Oh, we want our staging area to be Kekaha Neighborhood Center, you know, and they spent money to get a big map of Kekaha and they find out the whole Kekaha is in the flood zone area, you know So this is another big concern with the community So I hope you would look at all that pieces of the survey and, you know, have the community come back before we give you the final list as to what our COUNCIL MEETING -10- June 23, 2010 priorities would be, you know, so that the community has more understanding as to where we're going to spend our moneys, you know, and not. a lot of them said, not bathrooms; we don't need any bathrooms close to the beach because it's going to be water anyway if you dig for bathrooms, you know So that's all I have to say Thank you. Chair Asing: Thank you. Any questions, councilmembers? If not, is there anyone else who wants to speak? PBIYANEGRA LAVEZZARI. Aloha and good morning, my name is Pbiyanegra Lavezzari. I'm a resident of Kekaha. I have some concerns regarding the process of the whole CAC committee and I have some questions. I am asking for some recommendations from any or all of the councilmembers. When the process is not carried out by the members who are elected to represent the best interest of the residents, in a situation as. with as high an impact as this project is, what do you recommend that we do to address it and seek remedy because the issues that have been brought before you concerning the project list, concerning the survey itself, concerning the process of deciding which were the priority items for the project list and the fact that maybe one or more of the projects were vetoed in a vote and still carried forward. As residents and those of us who see it as a citizen's responsibility to hold accountable those who represent our best interest when our best interests are not being responded to, what is your recommendation that we as a community can do to hold those members of the CAC elected to represent our best interests accountable? Is there a process because if your final report is due on July 28, and you have so many people voicing a concern that the process itself was inappropriately used, then I think we need to be able to go back to the community and be prepared at our next meeting to answer those questions. Mr Furfaro: Well. well, let me. Jet me give you a quick summary here. First of all, I put this on the agenda. It's not my committee. The two committee members for public works that are represented in Mr Bynum and Mr Chang as the Vice Chair They are individuals without communicating to the whole council and getting us involved in dialogue, those are the two links to the council for capital improvements. Secondly, I do believe that the Mayor's appointment of the CAC was to solicit feedback, whether it was from a survey as we heard and so forth from today or community meetings, is a good idea, but it is certainly something that needs to be in liaison with the Mayor's Office. This council cannot arbitrarily be making the decisions about the specific community of Kekaha. That is why there is the advisory committee. But I think one of the pieces that needs to be also shared with your advisory committee is this CIP Improvement Program that is mandated by the council every five years and it does earmark projects that are in the future that affect the community in that area, whether it's roads or a beach pavilion and so forth. And I'm going to first thank the staff for producing an extra copy, but I'm going to give this to Mr Bulatao of the committee. The other particular piece that I just wanted to touch on is the July 28 date was set by me as a member of the Council saying, okay, in 30 days will we see a final report and there's nothing binding about that date. If that date needs to be moved back, we will move back. But on your other questions on procedural issues and legal issues, if I can direct that question towards the county attorney, if he chooses to answer it now or send a communique to the committee, I believe that's where that question should be earmarked. So Mr Castillo, would you like to expand on that question? COUNCIL MEETING - 11 - June 23, 2010 ALFRED B. CASTILLO, JR., County Attorney- Council Chair, if I may? Thank you. I'm sorry, what was your name. Ms. Lavezzari. Pbiyanegra Lavezzari. Mr Castillo: Okay, I'm sorry, how do you spell that for our records? Ms. Lavezzari. P as in Peter, b as in boy, i-y-a-n-e-g-r-a. Capital L- a-v as in victor-e- two z's as in zebra-a-r-i. Mr Castillo: Thank you. You got that? Good morning. Since this is a project that came out from administration, I strongly suggest that your.. your concerns be routed to the Mayor's office and could you please cc my office, the county attorney's office. And could you please be as specific and cover all of your concerns because the more information that you can relay to us and also your contact numbers so we can contact you directly Ms. Lavezzari. Thank you. Mr Castillo: Thank you. Ms. Lavezzari: Thank you. Mr. Furfaro: Thank you for your testimony Thank you, Mr Chair Chair Asing: Thank you. Is there anyone else? BC, Videographer• Check your mike. Chair Asing: I'm sorry, go ahead. KEN TAYLOR. Chair and Members of the Council, my name is Ken Taylor I don't live in Kekaha, but I appreciate all the efforts that the folks have been doing and wrestling with this issue. One of the concerns that has come to my mind in listening today to some of the testimony is that it was very generous for the county to give this community this moneys to do with which when it was given I thought it was given to them to do with what they as a community would like to do. Now, if I understand the testimony correctly today, it seems to have come with strings attached and I think is disingenuous and I really believe that the county in all good faith in giving this community this. these funds, it should be up to the community to come to grips with their decision as to what they would like to do with it and be allowed to move forward. I really am disturbed if in this survey it was. I don't know who put the survey together, but it sounds like it came from the county with a list of projects that the county wanted to see take place and I just think that that's wrong. So that's my thoughts and again, I want to thank the community members for their efforts and diligence in this project. Chair Asing: Councilmember Kaneshiro. Mr Kaneshiro: Thank you, Chair I have a question for Mr Taylor I'm trying to understand what you mean when you mention strings attached. Mr Taylor- Well from the testimony I heard today and I haven't seen any of the documents, so I don't know, but it sounds like if. if the COUNCIL MEETING -12- June 23, 2010 survey was put together by the county and sent to the community and it had a list of projects that the count. that the community was to prioritize, then those are strings in my mind. Mr Kaneshiro: Okay, but the facts are not as you stated. The CAC met and they came up with several options. They themselves developed the survey The county had nothing to do with the survey and what Mr Furfaro has been explaining is simply that once they decide what are their top projects, then we'll come in with an ordinance and go ahead and appropriate the money to that specific CAC recommendation. So I'm not certain about strings attached as you mentioned, so I want to clarify that as Chair of the Finance Committee that, you know, the CAC, advisory committee, brings out the survey The CAC committee goes and distributes that. The CAC community group, advisory group will get those information together and come up with the list. What I'm hearing from them is that perhaps with the survey that went out, there are some areas that the total community may not agree on, but I don't see anything where the county, you know, had some strings attached to what they're doing, so. Mr Taylor- And I appreciate. Mr Kaneshiro: We're here to appropriate the money Money's there. Let them decide and through the process when they decide, we as the body will go ahead and move and supply the moneys wherever it's needed, whatever it comes to out from the association. So when you mention strings attached. Mr Taylor I appreciate the clarification and. Mr Kaneshiro• All right. Mr Taylor I only said what I said because that was the way it came across and if I misinterpreted it, I apologize for that.. Mr Kaneshiro: Thank you. Mr Taylor But as I say, there. the community must be the ones that decide where and how this money is utilized. Mr Kaneshiro: Absolutely, we're not disagreeing with you. Mr Taylor- Thank you. Mr Furfaro: Mr Taylor, I would like to also say that, you know, the July 28 date is not firm. I can suggest through communications that we move that back a month so that the community has more time, but I think what Mr Kaneshiro said is it is not a decision from this body This body is a.. we have a fiduciary responsibility on releasing of the moneys; I said that early on. But the project list, the estimates, and so forth for that, I'm going to use the word wish list, must have community involvement but comes to us as a whole piece, not a discussion from us. We put that in an ordinance, we spend the money accordingly, and the charter requires that money be voted on when it's released for a specific project by ordinance and that's what we intend to do from the council. I hope that helps clarify it a little bit more. Mr Taylor Thank you. Chair Asing: Yes, come up COUNCIL MEETING - 13 - June 23, 2010 Ms. Buza-Sims: Just one more thing. That final list that came.. that is out there, some of the items. at least one that I know of was not on the original survey So I question the validity of the final list because community input wasn't on especially that one. So my question is how did it get on the list without the community knowing about it. So can anybody on the CAC put their agenda on that list without community input? So, you know, I and I appreciate you taking the time and asking the questions and really discerning this whole project because I think it's important that it's done well because we're the first one on the island and you know, it took 50-some odd years to get this money I don't expect it to take another 50 years to be determined how to spend it, but we do have time to make it good and to make it what the community wants, not a group of people who have some hidden agendas that were seated at the table on the CAC and there were. L. you know I've been to some of the meetings, I know I could not be on the CAC because I don't live in Kekaha, but I'm a Kekaha at heart person because I'm a plantation, Kekaha plantation girl. I am concerned about the money that it's. that it be spent well and it's from the community It's our way; it's your way, as leaders of the island to empower a community to expend funds for their need, not for the need of a few people. Thank you. Chair Asing: Thank you. Is there anyone else? Is there anyone else who wants to speak? Barbara, go ahead, one more time. (Inaudible from the gallery) Chair Asing: Come up, come up, Barbara. Mr Furfaro: Barbara, you have to come up Ms. Bulatao-Franklin. Some of us wanted to hear the input of the children. Like was mentioned, we do have five schools. Mary Jean is a principal of St. Theresa's School and I was very much involved at the Kekaha Elementary School on the SCC committee. council. It would have been wonderful to have the children at least be able to participate. What a wonderful learning process. Okay, maybe that's a given, they want a roller skate park. That might not be feasible, but for them to do the research. Where would you think we should put this in Kekaha? How much do you think it's going to cost? What is your individual student hopes? What are you class hopes and what can you do as a group to set priorities? What a wonderful learning process. But my understanding was they didn't want children's input and I think that that's what this money is about. It's for their future and we should have at least given them the opportunity to have a copy of the survey or even to come up with their own, go back to the learning process, and we're all learning something, I think, from this. Thank you. Chair Asing: Thank you. Go ahead, Jose. Mr. Bulatao: Some quick closing comments. Thank you, Daryl, for asking from some quick clarifications on the matter that you did bring up and you are entirely correct about this being a community driven survey, just exactly the way you described it. I want to emphasize that aspect of it. And I do also want to say along those lines that in the process, because we were all brand new in approaching this thing that we came naivete, if you will, about how to go about doing it and perhaps in that process we didn't know how to have the expertise in doing it well and so we may have blundered along the way in being too broad or too general in the process and so it was a learning experience for us. And finally, I do want to say this, that it was a learning pro. it continues to be a learning process for all of us as we move along. And as Mary Jean and Bobbie have pointed out that we continue to want to be a part of that process as a community, that we continue and COUNCIL MEETING -14- June 23, 2010 want to have the community involved and that it is essential that the children be involved. It is essential that the community, from kupuna to keiki, have an opportunity for input and that the timeline should be our timeline, and we are asking for that opportunity Thank you. Chair Asing: Thank you. With that, Councilmember Kaneshiro. Mr Kaneshiro: Thank you for that Mr Bulatao. I don't have a question for you, but I just wanted to point out that that is why it was so important for us, and I believe with Mr Furfaro that Mr Furfaro was the Chair of Finance was that we try to find a way where we can get this money into some account. some sort of account perhaps and I've had some discussion with the administration, Mr Reaentes, is that perhaps we may be able to. So in the meantime, if there's some interest that you or the, you know, the community can benefit from and even if the process takes years, that's okay, you know That's how it works. The process needs to work like that, but I know we have money allocated there. Now how do we do that and we're grappling with that right now And I think, you know, at the same time we're also learning and we're in that process. But my desire and I believe Mr Furfaro's and even the rest of the council's desire was to put this money in some trust fund or something so as you go through this process, even though it takes years, at least you'll be gaining interest on whatever amount that's in there too, so one day when you reach that point, you know, the interest portion plus several million dollars may be there for the community to take and use that for their benefit. I guess the process will work (inaudible). Mr Bulatao: Please take a look at page 11 in our handbook then. Mr Kaneshiro: Okay Mr Bulatao: under option that is available to.. Mr Kaneshiro: All right. Mr Bulatao: to us. Mr Kaneshiro: Thank you. (Inaudible.) Chair Asing: Thank you. Mr Furf'aro: Excuse me. Chair Asing: Any questions? Go ahead. Mr Furfaro: But until then, Jose, I want to make sure you understand. Mr Bulatao: Yes. Mr Furfaro: Under the current charter, the fiduciary responsibility for this money lays with this body Mr Bulatao: I understand. COUNCIL MEETING -15- June 23, 2010 Mr Furfaro: So I'm going to be posing that question in the form of correspondence. Now, I also want to say in scheduling today's piece and I think I sent you a communication on that, you know, that date of July 28 to see a final report was an arbitrary date. Mr Bulatao• I understand. Mr Furfaro: from me so that we could at least reach out and expedite this. But.. Mr Bulatao: Yes. Mr Furfaro: you know, you folks, at your next meeting, if.. if, as it was well said, if you want to, you know, postpone this process a little bit until you have an opportunity to gain some additional insight or revisit the list or now that I've given you the five-year county historical and future projections for CIP, you know, I can move that date back. But if you want the date moved back, please only communicate it to Mr Bynum or Mr Chang, who are the Chair and Vice Chair of that Committee, and they can take it from here rather than having a hope that, you know, all councilmembers would do some response because that is a violation of the sunshine rules. Mr Bulatao: I have a point of clarification on the county CIP thing. In the consideration of expending this allocation, does it have to be involved with the CIP projects only? Mr Furfaro: Well, to handle it appropriately and if I would just kind of dust off my accounting process, any fiscal improvements that we make in the Kekaha area, which is part of the County of Kauai, then becomes an asset for the county and must be recorded as such on our books, so. Mr Bulatao: Yes, but at the same time, if the community were to decide as a for instance, because they did come up in discussion, Mr Bulatao, that money should be set aside for scholarships for the children in our community and I said, that's a consideration, nothing to do with CIPs, and if the community did desire to have that money put aside for something of that nature, can the community decide that this is the way we should set that money aside for that purpose? Mr Furfaro: Well, I would say as I mentioned earlier, is it possible to use some of this money for the purpose of grants. Mr Bulatao: Right. Mr Furfaro: And I would say I have not had the time to research that, but I would think at first blush that is possible, but then it would slowly be funds that are served through a grant and a process. I can add that as the fifth question to my questions, but, you know, I don't want to give you any false hope. I want to be very clear that the money currently is accounted for and held in a non-interest earning account in our CIP fund as a summary, and I think, you know, that's where we need to start that discussion can go over to the county attorney, but the discussion should happen in your CAC committee. But it could be possible. You could possibly earmark some money for that. But again, that's my first blush answer Mr Bulatao: Then in closing, it would help us tremendously if we be given a copy because we have never had one, the language of the ordinance as COUNCIL MEETING -16- June 23, 2010 it was originally made that when the $650,000 was appropriated to the community of Kekaha, we need to see what was written in that original language so that we know and understand what was originally intended, and if that can be reviewed by the receiving people, because we are the ones who are receiving it and we can say, may we receive it on these terms because we need to come to some clear understanding. If we are getting the gift, is it ours to use the gift as we perceive that we may use it legally Mr Furfaro: Okay, I want to make sure we understand. When we reference an ordinance, what we're talking about is the budget ordinance. The money was earmarked in the budget ordinance. There isn't a separate ordinance. Mr Bulatao: Yes. Mr Furfaro: Secondly, I want to say that for all intents and purposes as it stays under the body but we create an ordinance that says where the money is going to be spent, we want to keep that money within the Finance Department here, certainly for the. just the first blush look at an annual audit. Mr Bulatao: Yes. Mr Furfaro: You want that for general protection. But the money is part of the budget ordinance. It's not a separate ordinance, so, I want to make sure (inaudible). Mr Bulatao: But it is not until this very moment that we have had any clear understanding of what was originally intended until right now Mr Furfaro: Well, I'm delighted that. that's the reason I put it on the agenda as I've watched you.. Mr Bulatao: Thank you. Mr Furfaro: your emails and communications, I think this was necessary But CIP items come under Public Works. Going forward, questions dealing with that should be directed at those two committee members. I will copy your committee on my five questions that go over Mr Bulatao• All right. Mr Furfaro: so that you have them and we'll shoot for the 28th of July as only a tentative date. We can push that back. Mr Bulatao: All right. Thank you. Chair Asing: Thank you. Councilmember Bynum. Mr Bynum. Just another quick question and when we call the meeting back to order, I'm going to have some comments to make, but right now, there was a consultant from AECOM that was part of your committee. Is that correct? Chair Asing: Yes. Mr Bulatao: Yes, a facilitator you mean? Mr Bynum. And what was the consultant's role? COUNCIL MEETING - 17 - June 23, 2010 Chair Asing: Yes. Mr Bynum. Was it a facilitator, Mr Pflum or Mr Bulatao: Well, someone was brought into our meeting and introduced to us as a facilitator and served in that capacity Mr Bynum. That's Mr Pflum? Mr Bulatao: Yes. Mr Bynum. And he's no longer a member of the committee? Mr Bulatao: My understanding that he was hired to be a part of our committee's efforts and served in the capacity as a facilitator Mr Bynum. Okay, his role then was facilitator Mr Bulatao: Correct. Mr Bynum. Okay, thank you. Chair Asing: Thank you. With that, I'll call the meeting back to order and is there any further discussion? Councilmember Bynum There being no one else wishing to testify, the meeting was called back to order, and proceeded as follows: Mr Bynum. Yeah, I. this first came up on the budget in 2008 and I...and then again in 2009 and then again this year I originally understood host community benefits as a process for siting a new landfill and that's the original discussion with the administration was as we site a new landfill since we last sited one many years ago, you know, many communities are exercising this host community benefits as part of the package and the contract they make with the community that sites a landfill. And so originally when I heard about this I expected it to be part of that siting of a new landfill process. Then what happened, in my view, is all of a sudden councilmembers said, hey, what about Kekaha? They've been hosting this for a long time and we. suddenly there was a proposal in the budget to put a very large sum of money into a fund to recognize the impact that hosting the landfill has on the community I don't think anybody objected to that concept, but I want to read some things I said in 2009 that are in the transcripts because I had concerns then and I still have concerns as do several people who came here today where that concern has come up But I want to read this because this is kind of where I was at then. It says, I'd like to see this fee institutionalized, but because we kind of went at this backwards, we didn't have a discussion about implementing host community benefits, we just kind of plugged this money in last year without any real planning, without a decision about how the use of these funds would be operationalized and again this year the funding is based on a rationale, but it's still not institutionalized. And so I have some real concerns about how the decisions made about the distribution of what is now over $700,000 will occur in Kekaha. It would have been nice to work out the plan first before we started dumping funds into this and I think it will be an issue here for the council in the future because there's some struggle about how we equitably make decisions and I think that because we did it kind of funding in advance, not to diminish our desire, I think, from everyone to recognize the impact on the Kekaha community of hosting the landfill. So, you know, in the second year of this process I was saying, hey, we COUNCIL MEETING -18- June 23, 2010 haven't institutionalized these funds. We didn't start up front with a clear thought- out plan, you know, in our desire and our collective desire to do what's fair and right for Kekaha. We put, in some ways, the cart before the horse. So then, you know, I remember this being at council when we first started to do. make this decision and there was concerns and difficulties about process. At the time I expressed concerns that we had our solid waste managers involved in this host community benefit thing and they're engineers. They are tasked with the operations and the development of our solid waste program, and I didn't believe had the expertise to properly you know, this was like this whole other level of all of a sudden that they weren't prepared for because they're very competent at running the program but weren't the kind of people, so I strongly encouraged at that time that we engage consultants because host community benefits operate in many communities. So, that's why I asked a few minutes ago the question about the consultant who. at least Mr Bulatao's perception was he was there to facilitate the meetings. But I think that we needed to have expertise about how to develop that equitable process and apparently we still do. I think that's unfortunate and so. and then I want to say something about the separation of powers. This is not the council's job to work out the administration of a host community benefit. It is our job to make decisions about the amount of the funding and eventually to give blessing to how funds are expended in the county That's the legislative body's responsibility But it's the administration's responsibility to administer this and to actually directly engage with the community We'd be overstepping our bounds if we started getting into that, you know But obviously and I also want to say that when speaking with the administration, I believe that everyone in this has the best of intentions, that they want this to work out equitably, but I guess it's human nature when you start talking about sums of money that are very large that there's going to be differences of opinion. So, whatever the decision gets made in the long run, you know, it's important that that decision was made equitably That's a really important word where people feel like there's a sense of fairness and I had hoped that we would engage a consultant who really has this experience and expertise. You know, I haven't watched every nuance of this. We now have a packet of information at our. a. and we can do more research, but you know, L. just reading through this, I noticed one of the decisions was to have the survey be an informal process. That was voted at the CAC and not kind of institutionalized in a formal way, you know So when I thought the consultant from AECOM would be the one that brings that expertise, those best standards of practice, and implements them in the community So, I trust that we are a caring and loving community and we need to get through these issues in ways that are equitable, but it's important that the council not, you know, have. show its concern, do its oversight responsibility, but not get directly involved in the administration issues and I know all the councilmembers understand that too. So, I just wanted to make those comments and hopefully have faith that we come to a conclusion because when I last heard about this it was like oh, the committee's been operating, they've tasked somebody to write the report and so we'll see where it goes from here, but I wanted to make those comments on the record today Thank you, Mr Chair Chair Asing: Thank you. Anyone else have any comments? Mr Furfaro: I do. I have one. Chair Asing: Go ahead. Mr Furfaro: As someone who was on the council when we moved on this item, I want to make it very clear that this was not a condition of siting the new landfill. This was a condition to try and make something right for the community for the years that they hosted the landfill, and that is how we arrived at the $650,000 initial fee with an ongoing contribution as long as the community COUNCIL MEETING _19- June 23, 2010 hosted that facility, and I just wanted to make clear That's what I voted for and that's how I understood it. So, thank you, Mr. Chair Chair Asing: Thank you. Any other comments? If not, let me try to put this together I don't have any problems. I think that everything was ironed out, is ironed out, but it is not taken with that in context. The problems that Councilmember Bynum makes reference to is not a problem. As a matter of fact, we hired AECOM. AECOM Technical Services is a consulting firm that does that type of work and that's the reason they were hired to assist the county and assist the community to do just that work. Let me read you this. You will find this on the website also. Kekaha Host Community Benefit Program and again, let me repeat, it is on the website. The objective of the Host Community Benefits is to balance the need for safe disposal of solid waste with the sacrifices borne by the host community The cornerstone of host community benefits are mitigation, alleviation of landfill impact such as landscaping and re-vegetation to alleviate visual impacts, and compensation, just payment, for offset living near the landfill. So that's the objective, clear. It can't be clearer than that. That's subjective. Now, last year, the County Council and this is for 2008. Last year the County Council appropriated $650,000 to the Kekaha community as a form of compensation for the upcoming expansion of the Kekaha landfill. At the request of the community, at the request of the community, Mayor Bernard Carvalho, Jr recently appointed nine Kekaha residents to serve on a citizens advisory committee for the host community benefits program. The appointed community members are Jose Bulatao, Jr., Myra Elliott, Randall Hee, Robert Jackson, Big Boy Kupo, Jr., Glenn Molander, Evelyn Olores, Bruce Pleas and Walter Stalker These are the nine members that were appointed. Four county employees serve as advisors and are non-voting members of the CAC, including Beth Tokioka who is the Executive Assistant to the Mayor, Allison Fraley who is the Solid Waste Program Developer Coordinator, Christobel Kealoha as the Deputy County Attorney, Leonora Kaiaokamalie who is the long-range planner, and in addition, Jeff Kaohi with the Solid Waste Management of Hawaii Inc., the company that manages the Kekaha landfill also serves as an advisor to the CAC So the structure is there It's not only there, they met at least eight times. They met; they made their minutes available; the meeting was open to the public; the public gave some input; they did their work, put their pieces together; and you have their recommendations here Evidently there is some members of the community who might not agree. There is also the Kekaha Community Association that might not agree, but you know, we can only have one group making a decision. We can't have everybody making decisions. So I. I don't have any problem. I would say, work with the administration. I can tell you that if I look at the record, here's what you'll find. Two thousand and eight (2008) in the CIP, allocation for host community benefits Kekaha $650,000; 2009 host community benefit $80,000; 2010 another $80,000; total on hand today available for funding all of these projects that came from the CAC $810,000 available. That's what this council has done. So we have put the money into the budget, into the program. It's available to you, you meaning the Kekaha Association, the whole Kekaha community, and work with the CAC to get your programs as you see fit. So I. the only recommendation I can make to you is for all of you in Kekaha to work together with your CAC You have nine members that were appointed. You had at least eight meetings conducted. You made some decisions at those meetings. Work together and come up with the final resolution and we'll be here at the council to support all of you. But work with the CAC and that was the program that was set up and you know, I was at the Mayor's office when this thing kind of blew up a little bit. So I have some background on and knowledge of what happened. But that is the process that was set up It's a good process. The reason for the administration being there at the meeting is to assist the community and that's why those people are there at those meetings. The COUNCIL MEETING -20- June 23, 2010 consultant was there, the engineer was there, Solid Waste was there, all of these people were there to assist the community They were non-voting members. They were members of the CAC, but non-voting. Only the members, the nine members was able to vote on any item that was put forward. So again, my message to you is work together with the CAC and come up with whatever you folks in Kekaha feel that you want to have done. Councilmember Furfaro is going to send you the 5-year CIP list so that. that might also help you to know what the county is doing so that when you do and propose something that you will know what the county is doing also. So with that, thank you very much. I'd like to have a motion to receive. Mr Furfaro: Mr Chair, I'd like to move to receive, but I would also like to, for the record, know that I'll push the actual final report due to the council back to August 25, 2010 as a tentative date. Chair Asing: Thank you. Mr Furfaro: but I'd like to move to receive. Mr Kaneshiro. Second the motion. Chair Asing: Any further discussion? If not, all those in favor, say aye. Mr Furfaro moved to receive C 2010-165 for the record, seconded by Mr Kaneshiro, and unanimously carried. Chair Asing: Next item please. Mr Nakamura. We're back on page 1 of the council's agenda, Mr Chair, on communications for receipt, communication C 2010-161, C 2010-162, and C 2010-163. C 2010-161 Communication (05/13/2010) from the Director of Personnel Services, transmitting for Council information, the Third Quarter Reports (January - March) relating to vacancies, new hires, reallocations, promotions, and positions established, pursuant to Section 20 of the County Budget Ordinance. Mr Kaneshiro moved to receive C 2010-161 for the record, seconded by Mr Bynum, and unanimously carried. C 2010-162 Communication (05/20/2010) from the Chief of Engineering, Department of Public Works, requesting Council approval of a traffic resolution that establishes a school zone and a speed limit of 15 miles per hour for the entire length of Kress Street, Halenani Street and a portion of Kalena Street in Lihu`e for the Ae Kamali`i School located at 2943 Kress Street: Mr Kaneshiro moved to receive C 2010-162 for the record, seconded by Mr Bynum, and unanimously carried. C 2010-163 Communication (05/20/2010) from the Chief of Engineering, Department of Public Works, requesting Council approval of a traffic resolution that establishes no parking at any time along Papalina Road in the vicinity of Alelo Road to minimize obstructing the line of sight of motorists turning onto Papalina Road from Alelo Road. Mr Kaneshiro moved to receive C 2010-163 for the record, seconded by Mr Bynum, and unanimously carried. Chair Asing: Next item please. Mr Nakamura. At the top of page 3 page 2, my apologies Mr Chair, for receipt communication C 2010-164. COUNCIL MEETING -21- June 23, 2010 C 2010-164 Communication (06/03/2010) from the Director of Finance, transmitting for Council information, the Period 10 financial Reports - Statement of Revenues as of April 30, 2010, pursuant to Section 17 and Section 20 of the Operating Budget Ordinance (B-2009-690): Mr Kaneshiro moved to receive C 2010-164 for the record, seconded by Mr Chang, and unanimously carried. Chair Asing: Next item please. Mr. Nakamura. At this time, Mr Chair, we're on communication C 2010-166. C 2010-166 Communication (06/15/2010) from the Director of the Office of Economic Development, requesting agenda time to present the Final Kauai Energy Sustainability Plan (KESP) and Recommendations. Chair Asing: Thank you. With that, I'd like to suspend the rules. George, please. There being no objection, the rules were suspended. GEORGE COSTA, Director of the Office of Economic Development: Aloha and good morning, Council Chair Asing and County Councilmembers. Councilmembers: Good morning. Mr Costa. For the record George Costa, Director for the Office of Economic Development, and I also have here today Glenn Sato, our Energy Coordinator We are here today to present the final version of the Kauai Energy Sustainability Plan. The plan began with Councilman Jay Furfaro and former Councilwoman JoAnn Yukimura, as well as Chairman Asing and the County Council presenting a resolution in 2008 requesting the mayor, through the office of economic development, to prepare the Kauai Energy Sustainability Plan for Kauai County Kaua`i's reliance on a finite supply of fossil fuels in the midst of an unprecedented and growing worldwide demand puts Kaua`i's families, economy and way of life at great risk to ever rising prices and the possibility that fuel supplies could be insufficient to meet basic human needs some time in the future. Kaua`i's dependence on fossil fuels is also sending millions of dollars each year out of the local economy and releasing thousands of tons of greenhouse gases and other pollutants into the atmosphere annually, thereby contributing to global warming and its detrimental impacts to the global ecosystems. The Kauai Energy Sustainability Plan is the start of a roadmap that will assist to strategically guide policies, initiatives, and public, private and collaborative actions toward achieving a way for present and future generations to live a sustainable way of life. The road to energy sustainability will be a long and challenging one. As the community and stakeholder meetings pointed out, there are various opinions on how this goal should be achieved, as well as the environmental, cultural, and financial issues that should be addressed. There will be many more opportunities to provide concerns and solutions as the plan is being further developed and implemented. Education of our island residents is the key to the success of this plan being implemented and maintained. We will have more opportunities for renewable energy resources and the jobs it will create for our island. Another part of the education equation is in workforce development of green jobs for island residents. After a year of stakeholder and community meetings, numerous hours of research by the consultant SENTECH Hawaii and feedback from the community and businesses, we have a plan that presents recommendations relating to ground i COUNCIL MEETING -22- June 23, 2010 transportation and electricity generation. These recommendations include in the actual plan under Section 4.1 Ground Transportation. Pass 2% Fossil Fuel Tax to Reduce Consumption of Fossil Fuel, 4.2: Improve the Kauai Bus System to Reduce Consumption of Fossil Fuel, 4.3: Offer Hybrid Electric Vehicle Incentives to Reduce Consumption of Fossil Fuel, 4.4. Support as needed visitor vehicle Rentals to Reduce Consumption of Fossil Fuel, recommendation 4.5: To Purchase Five Vegetable Oil Presses to Allow Small Farmers to Produce Straight Vegetable Oil to Increase Renewable Fuel Production and Use, 4.6. Offer Incentives to Convert Gasoline Vehicles to Gas Ethanol Flex Fuel Vehicles to Increase Renewable Fuel Production and Use, 4.7 Offer PHEV Incentives and Support Nighttime Charging Infrastructure to Increase Renewable Fuel Production/Use. In the electricity generation section, recommendation 6.1. Divert a Percentage of the KIUC Franchise Tax to Enable County to Lead Energy Efficiency Initiatives to Decrease Electricity Demand, 6.2: Increase KIUC Franchise Tax by 30% or From 2.5% to 3% to Facilitate Open Source Project Development Process to Increase Large Scale Renewable Energy, and the last recommendation 6.3: To Participate in the PACE Program to Increase Distributed Energy Capacity Again, please keep in mind that although this is the final version of the Kauai Energy Sustainability Plan, it's the beginning of a process that will involve all of us, our entire Kauai community to be positive and diligent in using the plan as a roadmap to our energy sustainability future. We look forward to collaborating and working with the County Council, Kauai residents, businesses, KIUC, and stakeholders in taking these recommendations to help shape our energy future. At this time, I would like to thank various individuals and organizations who contributed their time, knowledge, passion and commitment, and they include and aren't limited to Glenn Sato, the Office of Economic Development's Energy Coordinator for the coordination of the RFP process and consultant selection process; Councilman Furfaro and former Councilwoman JoAnn Yukimura for initiating the plan, Diane Zachary and Rayne Regush of the Kauai Planning and Action Alliance for coordinating stakeholder and community meetings as well as hosting the Kauai Energy Sustainability website.. on their website, the EPAC or Energy Planning Committee comprised of Walt Barnes, Rohit Mehta, Ed Nakaya, JoAnn Yukimura, and Jay Furfaro for their guidance throughout the process; as well as strategic advisor Maurice Kaya, consultant Doug Hinrichs and Jon Hurwitch of SENTECH of the SENTECH Hawaii team, Mayor Bernard Carvalho, the county administration and the county council, and especially the Kauai. to the Kauai residents and businesses for their participation, comments and concerns at stakeholder public meetings, emails and letters. Mahalo and aloha. Chair Asing: Thank you. Any questions, councilmembers? Councilmember Furfaro. Mr Furfaro: Yes, so George, now as we have it, 2% of the current gas rate is about 7 cents earmarked per gallon to expand the bus. Mr Costa. That's correct. Mr Furfaro: That's what it boils down to. Mr Costa. The proposal to set aside those funds. Initially when the first. when the plan first came out, I think everyone remembers, you know, we started with a 50-cent gas tax which, you know, got a lot of attention and a lot of feedback. And with the latest recommendation 2%, obviously there's concern because the state has its barrel tax that has been initiated, so it will have, you know, a definite effect on our our traveling public. So, you know, the original COUNCIL MEETING -23- June 23, 2010 recommendation is now, you know, primarily focusing on our Kauai Bus public transportation. Mr Furfaro I just wanted to reconfirm and focus on the fact that it is actually earmarked to provide alternative transportation for the purpose of the growing fuel costs, so the bus will be more and plentiful over time. Mr Costa. That's correct. Chair Asing: Any other questions, councilmember? If not, thank you. Oh, I'm sorry, go ahead. Mr Bynum. I'm sorry I guess this is the right time. I want to thank you and the office of economic development for shepherding this, also the KPAA Diane and Rayne. I think the. it's been a really interesting endeavor You know, there are a number of recommendations in the plan and as you've correctly pointed out, this is the beginning and we decide if we have political will to move on these redec. on some of the recommendations and 1. speaking for myself hope that we do. There are areas of the plan that I personally don't agree with and then there are areas that I think I'm thrilled with, so. And that's what you'd expect given, you know, the comprehensive nature of the examination we did, but I certainly believe that was a worthwhile and appropriate endeavor and it behooves us all to move on some of these recommendations so we don't again spend money you know, taxpayers money on a plan that doesn't change behavior And I think clearly we need to change behavior I think there are areas that we will. I appreciate Councilmember Furfaro has a resolution, you know, just. and I think we'll all agree with that we continue to collaborate, the administration, the council, and the community, to look at our energy future, so. Thank you very much, George, for coming. bringing it to a final sta. but it behooves us all to act on some of these recommendations and see where we have consensus and can move forward. Thank you very much. Mr Costa. All right, you're welcome, thank you. Chair Asing: Yeah, George, hang on, George. Yes, go ahead, Councilmember Furfaro. Mr Furfaro: George, this is coming later on our agenda today, but you're familiar with the proposed Resolution 2010-35, which is going to kind of break the plan up into a couple paired committee reviews here by various chairmen of various committees. Myself and Mr Kawakami will be dealing with KIUC and Lam Kawahara folks with transportation and so forth. You do understand our intent. Mr Costa. Yes. Mr Furfaro: to further meet with these agencies or coops to understand how they can merge this into their plan. You're familiar with that? Mr Costa. Yes, I'm familiar with it and you know, from a personal standpoint, I really appreciate the fact that, you know, through the County Council as well as my previous meetings with different stakeholders in the community and businesses, there is interest out there to have more collaboration and involvement to help really to help us all to move this plan forward and some of the recommendations. So that's a very good sign of the community wanting to be involved. COUNCIL MEETING -24- June 23, 2010 Mr Furfaro: Thank you for the use of that word, community collaboration. Thank you. Mr Costa. You're welcome. Chair Asing: Any other questions? If not, I have one question and that is in Section 9, Recommendations for Successful Plan Implementation, and I think, in my opinion anyway, this is the biggest question mark that should be addressed and so my question to you is who's going to do it and when is it going to be done, and let me just read it to you. "To increase the odds of the successful and timely implementation of the plan, a sustainable energy team should be formed with the following operational parameters: meeting quarterly to ensure progress, report to the mayor's office, and it will be funded by the fossil fuel tax plus the KIUC franchise tax increase, facilitated by a third party to ensure objectivity " So, to me, this is the really the crux. Unless you have this team put together, nothing's going to happen, in my opinion. So the question is when will this be initiated? Mr Costa. Well, Chair, you're absolutely correct and that's what I alluded to and. just a few minutes ago. In some of our meetings with different stakeholders, the question came up, you know, that's great that we have this plan that's put forward, but who will drive the plan? Is there any one individual or is there an entity that's going to basically be the lead and take charge? And I know with the various meetings that we've had, whether it be the Kauai Economic Development Board, Renewable Energy Committee which is comprised of again various business stakeholders, you know organizations like Apollo Kauai, there's numerous interest that want to be involved and be a part of this energy team, so to speak. For right now, I must say because the initial plan was placed in the office of economic development to shepherd this plan to. you know, so far we are the lead organization and it is our goal to work with the council and these organizations to put this energy team together to help us to meet, as stated, on a quarterly basis to ensure that, you know, it's not a plan that sits on a shelf and then we revisit it maybe a year from now, maybe a year and a half from now It's something that, you know, needs to take place soon because as we've seen, you know, in recent events, you know, with the gulf oil spill, you know, there's no telling what's going to happen next as far as fuel prices, availability, and how long would some of these renewable energy opportunities take to really get off the ground. So time is of the essence, and you know, to answer your question, Chair, I don't have an exact date or start date, but you know, I do look forward in working with the council and the Chair Councilman Furfaro's resolution to see what we can do to put this energy team together and move forward. Chair Asing: Thank you. Any other questions for George? If not, thank you. Is there anyone in the audience who wants to speak on this item? CARL IMPARATO• Aloha Councilmember, my name is Carl Imparato and I'd like to urge you that before acting on any of the recommendations in the plan that you give some serious thought to both the cost and other implications of those recommendation, most of which I believe are misdirected. I think the problem with the plan is that it begins with this unfounded premise that the community has indicated that it wants to achieve 100% local energy sustainability by 2030. I don't think that that's true. I think that while that might have been the feeling of a number of participants in the study who were asked that input before the ramifications of that premise were examined, I don't think that that's the sentiment of the general Kauai community But based on that premise, the plan proposes that you tax Kauai residents more than $62 million over the next 17 to 20 years. That's $4,000 for every family of four Then it proposes that you spend that $62 million on primarily subsidies for projects that should stand on their own or should COUNCIL MEETING -25- June 23, 2010 be paid for by the beneficiaries of the project, not the general public. I've summarized on the handout there the recommendations without the misleading euphemisms that are in the study I note that $50 million of the $62 million would be spent on subsidies, but you won't find the word subsidy anywhere in the plan at all. So let's go down that list. First of all, there's $35 million in subsidies to owners of hybrid, flex fuel and electric vehicles. If those vehicles made economic sense, the purchasers of the vehicles should. who are going to get the benefits of those vehicles, should pay for them. The purchasers, not other Kauai families, should pay for that. There's $2 million in subsidies to this hourly vehicle rental program for tourists. Now if that program makes any economic sense, then the tourist and the car rental agencies who use the programs, not Kauai families, should pay that money There's a $10,000 subsidy to businesses that make vegetable oil. Well, if that makes economic sense, then the manufacturers of vegetable oil should be paying for those presses. There's a total of $6 million in subsidies to developers, $3 million for the county to pay for developers' environmental impact assessments and $3 million for a project facilitator who performs basically what the developers' tasks are. The developers of energy projects, not the taxpayers, should pay for all of this, not the county to get involved with that. There's $3 million in subsidies to this property assisted clean energy program. Now that's a good program but should be designed to be self-sustaining so the beneficiaries of the program pay for the cost of administering the program, not the general public. There's $5 million to fund this new county energy manager and facility specialist position. You know those are positions that don't need to be funded by new taxes because if they truly are finding efficiencies in county operations, then the reduced energy cost should be what funds those. And if the reduced energy cost don't fund that, then those positions really aren't warranted. There's a total of $8 million for funding the sustainable energy team to "educate the community" and I'm very concerned that community education really means public relations and propagandizing the community rather than truly educating. WILMA AKIONA, Council Services Assistant: Three minutes, Mr Chair. Chair Asing: Yeah, go ahead. Mr Imparato: Finally, there's $3 million in subsidies. $3.3 million for the Kauai Bus system. Now even there while that might be a good idea, I don't think you should be increasing the bus system except based on surveys and studies that show that that's money well spent, that if you increase the bus system that it runs and the new equipment won't be underutilized. I want to correct something. That's the three. that's the amount in the plan for the Kauai Bus $3.3 million, so when you talk about the 7-cent gas tax, which raises $43 million, only $3.3 of the $43 million is for the Kauai Bus. That's half a cent of the 7-cent gas tax. The lion's share of the rest of it went all for subsidies to these other projects. So, it's clear to me that the authors of this plan don't really have the confidence that alternative vehicles, hourly tourist car rentals and vegetable presses really make economic sense, so instead the public should subsidize these ventures. I don't believe that it's also appropriate for the county to increase the KIUC franchise tax by more than a million a year to subsidize the developers of energy projects and the direct beneficiaries of PACE bonds. Its. it looks to me in general that what we have here is really an astounding. outstanding example of what's called OPM, other people's money syndrome, where it's easy to basically spend other people's money on projects that may not be really justified. COUNCIL MEETING -26- June 23, 2010 So, in conclusion, I don't believe that the county should be taxing Kauai residents and spending another $63 million for things which individuals, businesses and developers should pay But beyond the money and more importantly, the plan proposes that the county government intrude into a number of new areas, subsidizing vehicle purchases by consumers, subsidizing other businesses, subsidizing developers, getting involved in KIUC's planning and contracting, and basically proselytizing the citizenry So, I really urge you to consider where this plan would take you if you approve these recommendations because it is a question of both money and the county getting involved in areas where maybe it shouldn't be treading, in my opinion. Thank you very much for your time. Chair Asing: Thank you. Councilmember Furfaro. Mr Furfaro: Hi, Carl, first of all thank you very much for this very complete overview of the plan put into a summary of about three pages. Thank you very much. Mr Imparato: You're welcome. Mr Furfaro: And you do understand the intent now also is looking at a resolution where we can kind of break up some of these programs, study them in various ad hoc committees, and determine what kind of value they actually add because the trigger is then going to be the council's will, political will you might say as mentioned by Mr Bynum earlier, to actually implement by ordinance some of these particular pieces. So, could I ask you if I made contact with you and we were successful on this resolution that we might count on your very professional energy background and willingness to serve on one of the committees? Mr Imparato: Always willing to try to help where it looks like it might be productive. Mr Furfaro: Thank you very much because obviously your evaluation here raises the kind of questions that need to be done by these various committees and I appreciate the quick summary And the math here you did do on a cumulative total of 17 years or 20 years? Mr Imparato: The plan basically has some things that talk about 17 and some about 20, so I basically roughed it out at 20 Mr Furfaro: So, you made the whole summary here as a 20-year plan. Mr Imparato: Pretty much, although things might change by (inaudible) Mr Furfaro: We all round out numbers. Mr Imparato: Okay Mr Furfaro: So, got it. I just wanted to make sure that that's how you applied it. Thank you very much, Carl. Mr Imparato: You're welcome. Chair Asing: Thank you. Any other Councilmember Bynum. COUNCIL MEETING -27- June 23, 2010 Mr Bynum. Thank you, Carl, for this analysis of the cost, and I think it is appropriate that the word subsidy be used and is not in the plan. And as I indicated earlier, I think there are. when some of these proposals first came out, there was very strong reaction from the community and this council saying, basically this aspect is a non-starter There still are things in this plan that are recommended that I think are in that category of non-starter, so. And I think your, you know, and so your call to us to look at this in terms of taxpayers' dollars going for specific purposes and, you know, is a good one. So, you know, having said that I still think there are elements in the plan that don't require subsidies that are about, you know, that are worthwhile for us to look at. But there's no question in my mind, for instance, the largest one you have here are subsidies to hybrid and flex fuel vehicles. I don't see that happening and, you know, I have a hybrid vehicle. I made that choice on my own and I think many people will make those choices and the federal government may get involved in this kind of incentivizing, but it probably doesn't make sense for the county, in my opinion, to move in that direction. So that's one really big glaring one. And as I think Mr Furfaro already indicated, any looking at fuel tax, you know, is a discussion I think we should have but focused on public transportation, not subsidizing vehicle purchases for private individuals. So thanks for the. the start of this dialogue. Chair Asing: Thank you. Any other questions for Carl? Carl, I just want to thank you too for this very thorough review of the plan and I want you to know that I have the same concerns too. Looking at some of the areas and when I see as an example county to fund energy manager and facilities specialist at $255,000 a year, I'm saying holy caroly (sic), what in the world are we doing? Is it right? How we're going to actually do it? Of course the funds was planned to divert 7.5% from the franchise tax, but you know, will that happen? Won't it happen? It's a gray area. In fact I think it's very gray So, I understand your concerns and I agree with some of the concerns that you have on your memo. So thank you. Mr Imparato: I very much appreciate your attention. Thank you. Chair Asing: Thank you. Any other question for Carl? If not, is there anyone else who wants to speak on this item? JoAnn. JOANN YUKIMURA. Chair Asing, members of the Council, good morning. Councilmembers: Good morning. Ms. Yukimura. JoAnn Yukimura for the record. I. I agree with many of the things that Mr Imparato has raised. I think, however, that we do have to get off of oil and I think the BP gulf oil spill drove that home to us. We wouldn't have this huge disaster if we didn't have all the pressures to keep producing oil and given that oil is a limited resource, inevitably the price of oil is going to go up and we've seen that already It may go down every now and then, but the basic trend is up, and if we are to save our families and our businesses from the huge disaster of higher oil prices and the cost of it, not only in terms of the monetary costs, but the drag on the economy at a time where we have to create jobs. We have to keep in mind that getting off of oil is a very important goal and I think this tax is a form of self-discipline of the nature that our the former generations, our ancestors did in sacrifice for the future. So, because if you impose a tax, the money will stay here to help get us off of oil. If we wait for the future to come to us, and wait till the price of gas is over or the price of oil is over $100 a barrel again, we. that money is going to go out of our economy rather than stay in our economy to be put toward the things that will get us off of oil. So I think the tax is very important. Now, how much is one of the questions and how we use that money is the most important COUNCIL MEETING -28- June 23, 2010 question. Surely to subsidize our bus system and allow I rode the bus recently and people in the bus said Sunday service, Sunday service, we need Sunday service, and they also said we need later hours so when my job ends at 11 at night, I can go home on the bus as well. And we need to look at those, the subsidy of the bus as a way to avoid huge expenditures. For example, we are spending $50 million to expand Wailua Bridge and the road for one mile, $50 million. I think we could have spent $10 million on the bus and gotten the same results without the expenditure of $50 million. We would have had to have shuttles coming from the homesteads in Kapahi every 15 minutes, a bus that went along the main highway every 15 minutes, maybe coffee in the morning for the bus riders, things like that, but. things that would get people into the bus and we could have reduced our traffic. Mr Nakamura. Three minutes, Mr Chair Ms. Yukimura. Thank you. May I? Chair Asing: Go ahead. Ms. Yukimura. And the bus service also gives a bigger discretionary income to our families. If the family can release one car, give up one car, that will qualify them for $50,000 of mortgage money That's how we would be helping our families and also it helps our employers. You know, the Haraguchis used to come from Hanalei to pick up their workers in Lihu`e and do that twice a day to bring them back. But now because of the bus, their workers can go on the bus and so do workers to Pomare or Hilo Hattie's and so do workers to the county It helps employers and you don't have to have as much parking spaces. So we have to look at it in the big picture and also, to have solar water heating on every house so that we can. and pay no more than you're paying for your electric bill now which is what the PACE bonds are about, this is. this could be a huge boon to our families on long-term because after you pay off the water system. the solar water system, you're actually getting hot water for free. So, you have to look at the big picture and I think there's. there's really exciting possibilities for us to get off of oil. But Mr Imparato is right. I would not spend it on subsidizing electric vehicles. I would really look at where the return on investment for our families and our communities make it worthwhile to invest that money Thank you very much. Chair Asing: Thank you. Councilmember Bynum. Mr Bynum. I just wanted to thank you also for your testimony and you know, you certainly have hit on the two areas that I'm most interested in this plan, the PACE and the. and a balanced approach at expanding public transportation because. and you hit on what I think is a really important priority because of the significant percentage of our population that's growing that is dependent on the bus. And I hope that commu. that citizens on Kauai understand that having a better bus system even if you never ride it benefits you. Even if you continue to be a commuter and so, you know, I appreciate your testimony and I have to also recall when I was a young man, we had an oil crisis and I. a lot of young people don't remember that we stood in line and could only buy gas on every other day because of. politically a few countries were mad at the United States and. and withdrew their production from the world market and our President at the time Jimmy Carter proposed a gas tax and said kind of what you said today Either this money, we keep it here at home and address our dependency on foreign oil or we will pay this amount anyway and it will go overseas to another country, and of course, we know that that's exactly what happened and you know, every President since then has talked about our dependence on foreign oil and how that's bad for us politically, economically, you know, and you know, I think now maybe COUNCIL MEETING -29- June 23, 2010 we're ready to get serious about it after 30 years. But for those of us who are a little older, we think what if.. what if we would have made that commitment when Jimmy Carter was President in the 70s? How would we be? A different country in a different position geopolitically? Maybe we wouldn't be in two wars right now, so thanks for your for your testimony And I think there are elements of this plan that we need to seriously address as a community and you've hit on the two key ones, I think so. Ms. Yukimura. Thank you. Chair Asing: Thank you. Any other questions? If not, thank you. Ms. Yukimura. Thank you. Chair Asing: Yes. Excuse me, we need to take a caption break. My apologies and we'll be back and you'll be the first speaker up after the caption break. Thank you. There being no objection, the meeting was recessed at 11.15 a.m. The meeting was called back order at 11.30 a.m., and proceeded as follows: Chair Asing: This meeting is now called back to order With that. There being no objection, the rules were suspended. Chair Asing: Good morning. LINDA NEWMAN Good morning, aloha and thank you. I would like for the council to. Chair Asing: Your name please. Ms. Newman. Hi, okay, there you go. I would like for the coun. Chair Asing: Your name please. Ms. Newman. Oh, my name is Linda Newman and I would like for the council to please consider really looking at the bus system. I am the parent of a 15-year-old who is a road warrior And I think what we should do is start educating our children maybe at the freshman level of high school on how to access the bus. I would like to see more youth on the bus because in another year she's asking me for a driver's license, another car on the road, and I don't trust her driving with her kids right now I'm just a little nervous at this state, so I prefer for her to ride the bus. And she is starting to utilize it, but I think if we educate our children and the parents, and make our buses safe, then they can get to the movie theater and at that point I would like the bus maybe to look at where the youth go, to the movies. When the movie gets out at 11 o'clock at night, the parents still have to drive down to the bus and pick up all of the kids that are there. So, in your consideration of sustainability, please consider our youth, train them on the bus and then you have a generation of people who will use the bus and I think your buses will be used more and parents won't. will allow their children to get opportunity, dance KPAC here and there, but you know, driving up and down is tremendously costly for me as a parent also. So that's all I'd like to say and I'm all for bus sustainability Thank you. COUNCIL MEETING -30- June 23, 2010 Chair Asing: Thank you. Mr Bynum. Thank you. Chair Asing: Is there anyone else? Mr Taylor KEN TAYLOR. Chair and council, my name is Ken Taylor First I'd like to thank George and Diane for spending so much time and effort on this issue and with the community to bring this to this point. I certainly agree with the issues that Carl has raised. I agree with the comments that JoAnn made that the buses and water heaters are a very important part of this plan and should be top priority for a lot of reasons. But the plan as I see it today, even if though we don't agree with everything that's listed in it, is a starting point and I think it was mentioned that from this point, the opportunity is to. to take different parts of it and work with it and move forward and I think that's the important thing. Carl touched a lot on issues of subsidizing and when I look at what the federal government has done with subsidizing the ethanol issues, it troubles me a lot that. if it's really beneficial, it will take place in the open market. It doesn't have to be subsidized and so I think these are important issues. I really have to commend Carl for the tremendous report that he's presented to you folks and again, the efforts, we wouldn't be here today if it hadn't been for Diane and George and the whole community to bring this to this point. So, I hope as you pass it and we move into the next phase of this report, starting to massage and work out the details, we will see the benefits come to the community as we move forward. Thank you. Chair Asing: Thank you. Is there anyone else? If not, I'll call the meeting back to order, and can we have a motion? There being no one else to speak on this matter, the meeting was called back to order, and proceeded as follows: Mr Furfaro: Yes and this. Chair Asing: Councilmember Furfaro. Mr Furfaro: this motion would be to approve? Chair Asing: Receive. Mr Furfaro: I'm sorry This motion would be to receive. Yes, this motion would be to receive. Mr Bynum. Second. Mr Furfaro moved to receive C 2010-166 for the record, seconded by Mr Bynum. Chair Asing: Thank you. There's a motion to receive and a second. Yes, Councilmember Furfaro. Mr Furfaro: Yes and I'm sorry for my delay there. I was thinking in terms of how it relates to the upcoming action we're going to take on a resolution, and I do want to say that the committee worked very hard on evaluating these particular pieces. But I want us to think of it in terms of it being a. a strategic thinking plan, not so much as the plan. That is why I'm hoping we can approve the resolution that's coming up later as, you know, we need an energy strategic thinking document no more or less than this well-known strategic thinker COUNCIL MEETING -31- June 23, 2010 Maurice Mascarenhas had posed over the years with companies like IBM and Volkswagen knowing that in the future things are not going to be the same. I know this discussion here today about subsidies, which I appreciate Carl bringing up, I certainly appreciate Carl's report, thank you very much, Carl, but I also have to say that we have to throw in the question about investment versus subsidy Investments are extremely important and that's why I hope we can get refinement and press this thing down through the considerations that I'm asking for in the upcoming resolution. So, George, your staff, thank you very much. Thank you, Mr Chair Chair Asing: Thank you. Any further dis. yes, Councilmember Bynum. Mr Bynum. I'll be quick. I already said that two of the areas that are of big interest to me is about how we expend public transportation in the bus, and we mentioned this PACE Program. So I just want to say briefly, this is a concept that the county have a program that helps create financing for alternative energy projects, particularly solar water heating or even perhaps PV Structured properly, it doesn't have any cost to the taxpayers necessarily People use. but government has the ability to float bonds, to borrow money at large. I mean at very low interest rates compared to the population, so it's giving individuals access to that purchasing power in essence to do and it's being done successfully in many parts of the country It was a new idea a few years ago. You know, it was only one or two communities doing it, but there are an increasing number and I believe, I haven't run the numbers, but for something like solar water heating, you know, the consumer it may be a situation where you'd be foolish not to because you will pay less by using the program than by not using it. So, you know, mo. a lot of these alternative energy things we say, well, oh, when's the return on investment, you know, I have to wait six or eight years before I get a return. But with this kind of PACE Program, you know, there's a potential of having an immediate return on investment, meaning you're not paying any more not for one year, but right at the beginning you're saving money and saving the environment and reducing our dependence. So that's one I really hope that we pursue and I see people in the audience nodding, including our Energy Specialist, so. Those, you know, and there are other many other elements of this plan that are worth looking at, but those two just really leap out at me anyway So thank you very much, Mr Chair Chair Asing: Thank you. Councilmember Kawahara. Ms. Kawahara. Thank you, Chair First of all I want to say thank you to Councilmember Jay and Vice Chair Furfaro and former Councilmember JoAnn Yukimura for actually having the vision to request and follow through on a sustainability plan for the county regarding energy My understanding and I've been told that the general plan of 10 years ago for in general for our whole island didn't even acknowledge a concept of sustainability So to have a plan for energy sustainability in our hands and recommendations in our hands, I think, is a major feat and definitely an educational experience for everybody in the county and everybody that's interested in trying to attain sustainability The recommendations that I saw in the program or in the reports didn't really excite me much because they they are quite heavy in investment and what I did see was a focus on the Kauai Bus and transportation. public transportation, which I really, really am willing to put time and energy and effort into to see that we maximize that particular piece of the pie in our transportation plan regarding sustainability I also wanted to mention along with the other councilmember that PACE is something that did come up in the state legislature this year, so the state has also been looking at it and I think they wrangled with it a bit. There's probably a lot of work that still needs to be done because it didn't get through this session. I'm COUNCIL MEETING -32- June 23, 2010 hoping that the county and the state can work together to figure out a way to make a PACE plan possible for the county or the state, whichever level that feels that they can do it best. But overall I'm again, glad that there's such a thing as a sustainability plan for Kauai in regards to energy and I appreciate the time that it took and George's Costa's office and his staff that went through this with SENTECH, so thank you very much. Chair Asing: Thank you. Any other discussion? If not, all those in favor, say aye. The motion to receive C 2010-166 for the record was then put, and unanimously carried. Chair Asing: Next item please. Mr Nakamura. We're on page 2 of the council's agenda, Mr Chair, next matters are matters for approval. First matter for approval is C 2010-167 C 2010-167 Communication (06/01/2010) from Councilmember Tim Bynum, requesting Council approval to accept his donation of an HP Laser Jet 1022 Printer to the Office of the County Clerk - Council Services Division, an approximate value of $300 00, to be located in his office for use by all Councilmembers: Mr Furfaro moved to approve C 2010-167 with a thank-you letter to follow, seconded by Ms. Kawahara, and unanimously carried. Chair Asing: Next item please. Mr Nakamura. Next matter for approval is communication C 2010-168. C 2010-168 Communication (06/09/2010) from the Director of Parks and Recreation, requesting Council approval of the Ho`olokahi Program Grant Application for $3,000 00 submitted by the West Kauai Business & Professional Association (WKBPA) to purchase and install a permanent sign within the "Welcome Wall" at Hofgaard Park in Waimea. Mr Furfaro moved to approve C 2010-168, seconded by Mr Chang, and unanimously carried. Chair Asing: Next item please. Mr Nakamura. Next matter for approval is communication C 2010-169 C 2010-169 Communication (06/15/2010) from the Director of Economic Development, requesting Council approval to receive and expend funds annually awarded through Agreements for Health and Human Services with the State of Hawaii, Department of Labor & Industrial Relations for the Adult, Dislocated Worker, & Youth Programs funded under Title I of the Workforce Investment Act of 1998, and to indemnify the State of Hawaii for the same as described in the indemnification clause included in each contract associated with this program. Mr Furfaro moved to approve C 2010-169, seconded by Mr Chang, and unanimously carried. Chair Asing: Next item please. Mr Nakamura. Next matter for approval is a legal document transmitted by communication C 2010-170 COUNCIL MEETING -33- June 23, 2010 LEGAL DOCUMENT- C 2010-170 Communication (06/15/2010) from the Director of Economic Development, requesting Council approval to execute Amendment No. 1 to Contract No. 8295 (lease to the State of Hawaii, Department of Accounting and General Services for premises at the Pi`ikoi Building, 4444 Rice Street, Suite 302 for Workwise! One Stop Job Center), and to indemnify the State of Hawaii regarding the same. Amendment No. 1 to Contract No. 8295 (extends the early occupancy date to March 1, 2010, the commencement date to April 1, 2010, and the expiration date to February 28, 2018) Mr. Chang moved to approve C 2010-170, seconded by Ms. Kawahara, and unanimously carried. Chair Asing: Next item please. Mr Nakamura. Next matters are Claims on page 3 of the council's agenda, communication C 2010-171 which is a claim filed against the county by Rick K. Oshita, communication C 2010-172 which is a claim filed against the county by Kai Palama, and communication C 2010-173 which is a claim filed against the county by Shane N Matias. CLAIMS- C 2010-171 Communication (06/02/2010) from the County Clerk, transmitting a claim filed against the County of Kauai by Rick K. Oshita for physical injury and damage to his scooter, pursuant to Section 23.06, Charter of the County of Kauai. Mr Furfaro moved to refer C 2010-171 to the County Attorney's Office for disposition and/or report back to the Council, seconded by Mr Bynum, and unanimously carried. C 2010-172 Communication (06/02/2010) from the County Clerk, transmitting a claim filed against the County of Kauai by Kai Palama for damage to his vehicle, pursuant to Section 23.06, Charter of the County of Kauai. Mr Furfaro moved to refer C 2010-172 to the County Attorney's Office for disposition and/or report back to the Council, seconded by Mr Bynum, and unanimously carried. C 2010-173 Communication (06/03/2010) from the County Clerk, transmitting a claim filed against the County of Kauai by Shane N Matias for physical injury, pursuant to Section 23.06, Charter of the County of Kauai. Mr Furfaro moved to refer C 2010-173 to the County Attorney's Office for disposition and/or report back to the Council, seconded by Mr Bynum, and unanimously carried. Chair Asing: Next item please. Mr Nakamura. Next matters for approval are Committee Reports from your committee on Public Works/Elderly Affairs, committee report CR-PWE 2010-08. COUNCIL MEETING -34- June 23, 2010 COMMITTEE REPORTS. i A report (No. CR-PWE 2010-08) submitted by the Public Works/Elderly Affairs Committee, recommending that the following be received for the record. "Communication (6/8/2008) from Committee Member Jay Furfaro, requesting the presence of the Administration to discuss the status of repairs to the staircase at the intersection of Olohena Road, the Kapa`a Bypass, and Opala Road, in addition to striping a crosswalk near the vicinity of the Kapa`a Roundabout," Mr Bynum moved for approval of the report, seconded by Mr Kaneshiro, and unanimously carried. Chair Asing: Next item please. Mr Nakamura. Last committee report is Committee Report No. CR-COW 2010-01 from the Committee of the Whole. A report (No. CR-COW 2010-01) submitted by the Committee of the Whole, recommending that the following be received for the record. "Bill No. 2346 - A BILL FOR AN ORDINANCE AMENDING CHAPTER 3, ARTICLE 1 KAUAI COUNTY CODE 1987, AS AMENDED RELATING TO THE CODE OF ETHICS," Mr Kaneshiro moved for approval of the report, seconded by Mr Furfaro, and unanimously carried. (See later for Bill No. 2346.) Chair Asing: Next item please. Mr Nakamura. Next matters for approval are Resolutions. First resolution is Resolution No. 2010-35. RESOLUTIONS. Resolution No. 2010-35, RESOLUTION REQUESTING THE MAYOR TO CONSIDER INCLUDING THE COUNCIL OF THE COUNTY OF KAUAI IN THE IMPLEMENTATION OF THE KAUAI ENERGY SUSTAINABILITY PLAN Mr Bynum moved to adopt Resolution No. 2010-35, seconded by Mr Kaneshiro. Chair Asing: Any discussion? Mr Furfaro: Yes, thank you, Mr Chair Again I think this is the next step that actually moves the term plan into some real strategic thinking where we can look forward to those organizations that perceived., are perceived as stakeholders and be able to, you know, really refine anything that could in fact lead to an ordinance that we would like to implement. A perfect example that is the presentation made by Mr. Carl Imparato and I would certainly like to recruit him to get on one of the ad hoc committees. But it also, and before you vote on this, does require certain committee chairs to make commitments on certain pieces to be involved, so. Thank you, Mr Chair Chair Asing: Thank you. Any further discussion? Councilmember Bynum. COUNCIL MEETING -35- June 23, 2010 Mr Bynum. Yeah, I'd like to take this opportunity to thank Councilmember Furfaro for his leadership on these energy issues, also Councilmember Yukimura when she was here last term. I also appreciate the question the Chair asked earlier of economic development about, you know, who takes the lead and who formulates the team. That was an excellent question and I appreciated Mr Costa's response saying that as far as he's concerned this has been in his camp and he's responsible. So, I appreciate that commitment from the administration and I think combined with this resolution, assuming it passes now, you know we have the commitment of the council to be a part of that collaborative team too, so thank you. Chair Asing: Any further discussion? If not, roll call please. The motion to adopt Resolution No. 2010-35 was then put, and carried by the following vote. FOR ADOPTION Bynum, Chang, Furfaro, Kaneshiro, Kawahara, Asing TOTAL - 6, AGAINST ADOPTION None TOTAL - 0, EXCUSED & NOT VOTING Kawakami TOTAL - 1. Chair Asing: Next item please Mr Nakamura. Next resolution for approval is Resolution No. 2010-36. Resolution No. 2010-36, RESOLUTION ESTABLISHING A SCHOOL ZONE 15 MPH SPEED LIMIT FOR KRESS STREET, HALENANI STREET AND PORTION OF KALENA STREET IN THE LIHU'E DISTRICT, COUNTY OF KAUAI. Mr Furfaro moved to adopt Resolution No 2010-36, seconded by Mr Chang, and carried by the following vote. FOR ADOPTION Bynum, Chang, Furfaro, Kaneshiro, Kawahara, Asing TOTAL - 6, AGAINST ADOPTION None TOTAL - 0, EXCUSED & NOT VOTING: Kawakami TOTAL - L Chair Asing: Next item please. Mr Nakamura. Next resolution for approval is Resolution No. 2010-37 Resolution No. 2010-37 RESOLUTION ESTABLISHING NO-PARKING AT ANY TIME ALONG A PORTION OF PAPALINA ROAD, KOLOA DISTRICT, COUNTY OF KAUAI. Mr Chang moved to adopt Resolution No. 2010-37, seconded by Mr Furfaro. Chair Asing: Any discussion? Yes, Councilmember Kawahara? Ms. Kawahara. Thank you, Council Chair I still am in discussion with Mr Kudo at the engineering office. I don't have problems approving the resolution, but I will be sending over a communication regarding the full. whether or not the whole road there needs to be no parking. This. along this road part are several commercial establishments along with the opposite side, so I just wanted to confirm with them if the whole road needs to be no parking or if for safety reasons COUNCIL MEETING -36- June 23, 2010 we can make just portions of it no parking so that there's a line of sight because I know there's line of sight issues. So I'll be sending over a communication about those and. but no problem approving it, just maybe there might be some changes that might be made later Chair Asing: Okay Ms. Kawahara. Thank you. Chair Asing: Any further discussion? Mr Furfaro: Yes. Chair Asing: Yes. Mr Furfaro: This resolution is in particular and I understand your question and your rationale, but this is for a portion of the road right now to approve. But if you pursue further dialogue with the engineering department, I will certainly entertain expanding it. Thank you. Chair Asing: Okay, thank you. Any further discussion? If not, roll call please. The motion to adopt Resolution No. 2010-37 was then put, and carried by the following vote: FOR ADOPTION Bynum, Chang, Furfaro, Kaneshiro, Kawahara, Asing TOTAL - 6, AGAINST ADOPTION None TOTAL - 0, EXCUSED & NOT VOTING Kawakami TOTAL -1. Chair Asing: Next item please. Mr Nakamura. Next matters are Bills for-Second Reading. First bill for second reading is Bill No. 2318, Draft 3. BILLS FOR SECOND READING Bill No. 2318, Draft 3 - A BILL FOR AN ORDINANCE TO AMEND CHAPTER 8, KAUAI COUNTY CODE 1987, RELATING TO THE COMPREHENSIVE ZONING ORDINANCE (Farm Worker Housing) Mr Furfaro: Mr Chair, with Mr Kawakami's absence and he is traveling on council business, I would like to ask for a deferral for two weeks. Chair Asing: Thank you. Can I have a second please? Mr Chang: Second it. Chair Asing: All those. I'm sorry, all those in favor, say aye. Mr Furfaro moved to defer Bill No. 2318, Draft 3, seconded by Mr Chang, and unanimously carried. Chair Asing: Next item please. COUNCIL MEETING -37- June 23, 2010 Mr Nakamura. Next bill for second reading is Bill No. 2346. Bill No. 2346 - A BILL FOR AN ORDINANCE AMENDING CHAPTER 3, ARTICLE 1 KAUAI COUNTY CODE 1987, AS AMENDED RELATING TO THE CODE OF ETHICS Mr Kaneshiro moved to receive Bill No. 2346 for the record, seconded by Mr Furfaro, and unanimously carried. Chair Asing: Can I have the County Attorney up, please. There being no objection, the rules were suspended. ALRED B. CASTILLO, JR., County Attorney- Council Chair, good morning, members of the Council, Al Castillo, County Attorney Chair Asing: Good morning. Mr Castillo: Good morning. Do you want me to read all of the. Chair Asing: Yeah, I think we need to take care of all of it. Mr Castillo: Okay, thank you, and I'll start with Executive Session ES-448. EXECUTIVE SESSION. ES-448 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. ES-449 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. ES-450 Pursuant to Haw Rev Stat. sections 92-4, 92-5(a)(2), (4) and (8), and Kauai County Charter §3.07(E), the purposes of this executive session are to consider the evaluation of officers and/or employees where consideration of matters affecting privacy will be involved and associated matters relevant to the activities of the personnel gratis consultant. This briefing and consultation involves consideration of the powers, duties, privileges, immunities and/or liabilities of the Council and the County as they relate to this agenda item. COUNCIL MEETING -38- June 23, 2010 ES-451 Pursuant to Haw Rev Stat. sections 92-4, 92-5(a)(4) and (8), and Kauai County Charter section 3 07(E), the Office of the County Attorney requests an executive session with the Council to provide a briefing regarding legal issues related to the implementation of Kauai County Charter Section 3.19 This briefing and consultation involves the consideration of the powers, duties, privileges, immunities and /or liabilities of the Council and the County as they relate to this agenda item. Chair Asing: Thank you. With that, I'd like to call the meeting back to order and have a motion to move into executive session. The meeting was called back to order, and proceeded as follows: Mr Furfaro: So moved. Mr Bynum. Second. Chair Asing: Any discussion? All those in favor, say aye. Mr Furfaro made a motion to move into executive session, seconded by Mr Bynum, and unanimously carried. Chair Asing: We'll move into executive session and we will return at 1.30 p.m. for the public hearing. The meeting was recessed at 11.55 a.m. to move into executive session. ADJOURNMENT The meeting was called back to order, and there being no further business, the meeting was adjourned at 6.17 p.m. Respectfully submitted, PETER A. NAKAMURA County Clerk /wa