COUNCILMEETING NOVEMBER 27, 2024 The Council Meeting oft the Council of the County of Kauai was called to order by Council Chair Mel Rapozo at the Council Chambers, 4396 Rice Street, Suite 201, Lihu'e, Kauai, on Wednesday, November 27, 2024, at 8:31 a.m., after which the following Members answered the call of the roll: Honorable Addison Bulosan Honorable Bernard P. Carvalho, Jr. Honorable Bill DeCosta Honorable Ross Kagawa (present at 8:34a.m.) Honorable KipuKai Kualii Honorable Mel Rapozo Excused: Honorable Felicia Cowden (Note: No one from the public provided oral testimony via the Zoom remote technology platform on any agenda item.) APPROVAL OF AGENDA. Councilmember Kualii moved for approval of the agenda, as circulated, seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: The motion for approval of the agenda, as circulated, was then put, and carried by a vote of 5:0:2 (Councilmember Cowden and Councilmember Kagawa were excused). Council Chair Rapozo: The motion carries. Next item, please. MINUTES ofthe following meeting of the Council: October 23, 2024 Council Meeting by Councilmember DeCosta. Council Chair Rapozo: Councilmember Kualii moved to approve the Minutes as circulated, seconded Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: COUNCIL MEETING 2 NOVEMBER 27, 2024 The motion to approve the Minutes, as circulated, was then put, and carried by a vote of 5:0:2 (Councilmember Cowden and Councilmember Kagawa were excused). Council Chair Rapozo: The motion carries. Next item, please. INTERVIEWS: SALARY COMMISSION: Stacie Naomi Chiba-Miguel - Partial term ending 12/31/2026 ELLEN CHING, Boards & Commissions Administrator: Good morning. Ellen Ching, Boards & Commissions Administrator. Today, Iam pleased to introduce Stacie Chiba-Miguel. Stacie is the city girl, born and raised in Lihu'e. She attended KauaiHigh School and continued her education at Mesa State College, known today as Colorado Mesa University. Armed with a bachelor's degree in public relations and journalism, on a whim she followed a friend and moved to New York City (NYC). Her friend lasted eight (8) months, but Stacie stayed for the next ten (10) years. While in New York City, Stacie built her career working with Fortune 500 companies, initially in busines-to-business corporate sales as an account manager for Enterprise Rent-A-Car and later moved into Human Resources as a recruiting manager for Robert Half International, which is the largest staffing firm in the world, and subsequently as the director of recruiting at. Attention Global, a large digital media agency. As a recruiter, a matchmaker of employers and employees, part of her job included reviewing salary compensation and job requirements. As the saying goes, "home is where the heart is." With her long-distance relationship feeling the strain, although this would mean starting her career all over, Stacie returned to Kaua'i. (Councilmember Kagawa was noted as present.) Ms. Ching: Undaunted, Stacie jumped into property management at CBRE starting off as the Assistant Manager at The Shops at Kukui'ula and then as the real estate manager for Kukui Grove. Not surprising, she waso offered the position ofsenior property manager with. Alexander & Baldwin (A&B) in 2017, and in 2021, was promoted to regional asset manager overseeing Kauaiand Hawaiil Island properties thatinclude The Shops at Kukui'ula, Hokulei Village, Port Allen Marina Center, Queens' Marketplace, Lanihau Marketplace, and several industrial assets. Yes, she married that person she moved home for and is the proud parent of two (2); a daughter aged ten (10) and a seven-year-old son. At least once or twice a month, her family gathers to enjoy the sunsets and night fishing at Major's Bay Beach. Stacie's last meal would be otoro with uni and her current best foodie tip isl Don Quijote where you can buy an eighteen (18) pack ofo otoro for forty dollars ($40). She also loves traveling. Her favorite trip was to South Africa, diving with the great white sharks. As a busy working woman and Uber mom, shuttling the kids to baseball, cheer, and hula practice,Iam sO thankful that Stacie is willing to share her time and expertise with the Salary Commission. Council Chair Rapozo: Thank you. COUNCIL MEETING 3 NOVEMBER 27, 2024 Ms. Chiba-Miguel: Council Chair Rapozo: Ms. Chiba-Miguel: Council Chair Rapozo: Ms. Chiba-Miguel: Council Chair Rapozo: add to that amazing introduction by Ellen? Ms. Chiba-Miguel: Happy Thanksgiving, everyone. Council Chair Rapozo: Councilmember DeCosta: Good morning. Good morning. Swimming with great white sharks, huh? Yes. Do not do it here though. Iwould not do it anywhere. Itv was nice, it was fun. Okay. Is there anything else you would like to No. Thank you for the opportunity, and Councilmember DeCosta. This is the first time that I am going to say that Ellen is inaccurate. I think her statement is inaccurate. You said, "city girl, Lihu'e," but ifI am correct, Stacie Naomi Chiba-Miguel, is Ichi Chiba your grandpa? Ms. Chiba-Miguel: Councilmember DeCosta: Ms. Chiba-Miguel: Councilmember DeCosta: Grandpa. Is your dad Mel? Yes. Iremember, Ellen. She was a little girl with her bamboo pole who came from Lihu'e to Pakala with the shrimp on the hook and went fishing. She walked up and I must have been out of college, hunting with my dad, you passed by the truck and asked, "What is that?" So, yes, she is a little bit ofa country girl from Pakala too, am Icorrect? Ms. Chiba-Miguel: home for a little bit. Councilmember DeCosta: Ms. Chiba-Miguel: Councilmember DeCosta: Ms. Chiba-Miguel: Council Chair Rapozo: Iam definitely more "country," now thatIa am We are honored to have you. You come from a good local family. We know where your heart is... Yes. ..because you were raised that way. Thank you. Are there any further questions? Ifnot, thank you very much. COUNCIL MEETING 4 Thank you. NOVEMBER 27, 2024 Ms. Chiba-Miguel!: Council Chair Rapozo: Painless. We will be voting on the Resolution at the next Council Meeting, and then Ellen folks will inform you. I do not see any problems. Thank you. Ms. Chiba-Miguel: Thank you sO much. JADE K. FOUNTAIN-TANIGAWA, County Clerk: Council Chair, the next interview is for Joshua Uyehara, partial term ending December 31, 2026. Joshua Norio Kamishita Uyehara - Partial term ending 12/31/2026 Ms. Ching: Ellen Ching, Boards & Commissions Administrator. I am happy to introduce Joshua (Josh) Uyehara. Josh was born and raised in Waimea, and attended Waimea Elementary School, Waimea Middle School, and graduated from where else, Waimea High School. From Waimea, Josh flew to Boston to attend Harvard University to study computer science. Unfortunately, after a year, his education was interrupted and derailed by a medical emergency. Josh remained at home to help his mom who suffered from ongoing complications related to a brain tumor and subsequent strokes. Luckily his mom survived and is still here today and doing well. When he returned to Kauai, he found employment in the seed industry first with Pioneer, then with Syngenta. After several years with Syngenta's Kekaha operation where he became acting station manager, he moved with the company in 2012 to Minnesota as the regional functional planner, and in 2015, back on Kauai, as the station manager. In 2017 when Hartung Brothers, Inc., purchased Syngenta Hawaii operations, Josh was hired as the vice president and general manager of the Hawaii division. In his various managerial roles, Josh has had the overall responsibility ofemploying many employees and balancing the needs offilling the positions, setting salaries, and the operational goals of his company. Josh's favorite food is sashimi, so iti is only natural that a dream trip would be to eat his way through Japan. A close runner up would be to take his daughter on a road trip like the ones he enjoyed with his wife when they lived in Minnesota, to revisit the Pacific Coast Highway or to drive from Washington to Alaska. In his free time, he enjoys technology, programming, yardwork, and volunteering with the Kekaha Agricultural Association and its many community activities. With his professional experience, Joshua is an ideal candidate for the Salary Commission, and I am sO grateful for his willingness to serve. Council Chair Rapozo: Mr. Uyehara: Thank you. Thank you, Josh, for agreeing to Good morning, Council Chair, and Members serve. Do you have any additional comments? ofthe Council. Thank you for the opportunity, andIam here to answer any questions. Iam here mainly because Ihope to help the County be successful. I think the Salary Commission plays an important role in that. Council Chair Rapozo: Are there any questions? Councilmember DeCosta. COUNCIL MEETING 5 NOVEMBER 27, 2024 Councilmember DeCosta: There are two (2) ofyour Waimea High School alumni sitting up here and although I like to take little bit of credit, because when I was teaching, he was a student at Waimea High School, but he was sO smart, he was not in my special education class. Idid tell him, Hello," all the time because his dad was a Robinson cowboy and my dad was a Robinson superintendent, SO our fathers were friends. It gives me great pleasure, Josh, I think we are treading in some unencumbered water right now, especially in our agriculture division. Having a local, educated boy from the Westside making sure that our economy is still strong, we need that. Thank you for what you bring to the table. Mr. Uyehara: Council Chair Rapozo: not, thank you, again. Ms. Fountain-Tangawa: Thank you very much. Thank you. Are there further questions? If The last interview today for the Salary Commission is for Wayne Katayama, for a term ending December 31, 2027. Wayne Kazuo Katayama - Term ending 12/31/2027 Ms. Ching: Ellen Ching, Boards & Commissions Administrator. Lastly, Iam honored to introduce Wayne Katayama. Wayne was born and raised in Mânoa and attended President Theodore Roosevelt High School (Roosevelt). Upon graduation, he attended the University of Hawaii at Manoa (UH Manoa) and obtained a bachelor's degree and master's in business administration. Right out ofcollege, Wayne joined C. Brewer & Co., Ltd. (C. Brewer) and was the project accountant for real estate development projects on Hawaii Island. Wayne quickly built a solid reputation for decreasing costs, creating new value-added products, and increasing efficiencies, production, and sales. In short order, he was hired at Olokele Sugar Co., as an industrial engineer, then back to C. Brewer as a senior financial analyst responsible for monthly financial review and analysis of sugar, macadamia nuts, and international operations. This was followed by Kilauea Agronomics as the vice president where he led the development construction and operation of the visitor center, and later for a time, served as the president for both Kilauea Agronomics and the Hawaiian Fruit Specialties, leading the recovery from Hurricane Iniki. During this time, he also negotiated labor contracts with the International Longshore and Warehouse Union (ILWU) structuring pay scales and flexibility for seasonal and contract employees. Wayne is probably best known as the president and general manager at Kaua'i Coffee where he oversaw the farming, processing, and marketing of coffee until he retired in 2016. He was a visionary in implementing environmental initiatives like a pesticide management plan which reduced the usage and drift in converting the dryer from diesel to liquid propane gas (LPG) to reduce stack emissions. After a seven-year hiatus, Wayne has returned to Kauai Coffee as the acting general manager. It seems like a mystery; how did a city boy develop a career in farming? When Wayne grew up in Manoa, the area was all small truck farms and gardens, growing vegetables and carnations in the valley. He rode his bike to UH Mânoa every day and the first time he ever wore a pair of pants was when he reported to his first day at work. Wayne also served in the military. During college, he joined the Air National Guard and continued to serve until his retirement in 1995 at the rank ofMajor. In his free time, COUNCIL MEETING 6 NOVEMBER 27, 2024 Wayne and his wife enjoy traveling, and have been to Japan several times. He is also an avid golfer. His favorite course in Hawaii is Mauna Lani Golf on Hawaii Island, and he is also an oenophile, a lover of wine. Ijust learned that word. His best bottle so far was an Opus One which is a unique wine made by two (2) of the most famous vintners in the world, Baron Philippe de Rothschild of Bordeaux, France, and Robert Mondavi of Napa Valley. With all his professional and technical knowledge, Iam sO appreciative that Wayne is willing to contribute his time and expertise to the Salary Commission. I also want to make a correction on the record on his application. He: is ar registered voter, although by mistake, he checked that he was not. Council Chair Rapozo: Thank you for making that clarification because I never have seen a "no" on that block on any application that has ever been submitted. Thank you, Ellen, thank you, Wayne. Do you have any comments? Members of the Council. I do not know who Ellen described, but sure sounded pretty Mr. Katayama: Good morning, Council Chair. Good morning, good to me, soIam open for questions. Council Chair Rapozo: Councilmember Carvalho: Councilmember DeCosta: Council Chair Rapozo: Councilmember DeCosta: Are there any questions for Wayne? No. Ihave a question. Go ahead. Idor not know you, like I know the other two (2) candidates, but you are very impressive with the biography. I do know one thing, there are good people and a good community in Manoa Valley. When Ilive on O'ahu in the early 1990s, Iused to hunt there in the Valley. We would also meet some elderly Japanese people, maybe you were one of them, but I would come home with a pig, and you folks would come and call us, but thank you for being very kind in the community. O'ahu has plenty good local people, too. Mr. Katayama: Council Chair Rapozo: Thank you. Wayne, thank you very much. Iknow you are a busy person, as with the other two (2). Ellen, again, good job finding these candidates. This is again, for the public's information, for the Salary Commission, which will be getting together to take a look at the County's salaries for elected and appointed and we will see where that goes. Thank you, again, all three (3) of you, thank you very much. Mr. Katayama: Council Chair Rapozo: Thank you, Council Chair and Members. Just for the Councilmembers information, we will take our caption break at 10:00 a.m. today, and then we will do the audit because we. have the Auditors flying in from O'ahu. They will be present in person. We will go until 10:00 a.m., we will take the caption break, and then we will start up with the Auditors, and then go back to the agenda. With that, next item, please. COUNCIL MEETING CONSENT CALENDAR: 7 NOVEMBER 27, 2024 C2024-236 Communication (10/11/2024) from the Mayor, transmitting for Council consideration and confirmation, Mayoral appointee Nathan A. Wood Bulding/Consiruction, to the Building Board of Appeals Partial term ending 12/31/2024. C2024-237 Communication (10/30/2024) from the Mayor, transmitting for Council consideration and confirmation, Mayoral appointee Bernadette Y.A. Akiona Arruda to the Salary Commission - Partial term ending 12/31/2025. C2024-238 Communication (11/08/2024) from the Director of Finance, transmitting for Council information, Periods 1 through 9 Financial Reports Statement of Revenues, Statement of Expenditures and Encumbrances, Revenue Report, and Detailed Budget Report for the period of July 1, 2023 through March 31, 2024, pursuant to Section 21 of Ordinance No. B-2023-891, relating to the Operating Budget of the County of Kaua'i for Fiscal Year 2023-2024. C2024-239 Communication (11/13/2024) from the Mayor, transmitting for Council consideration and confirmation, the following Mayoral reappointments to various Boards and Commissions for the County of Kaua'i: a. Board of Ethics Chantal Zarbaugh - Term ending 12/31/2027 John Latkiewicz - Term ending 12/31/2027 b. Board of Water Supply Tom Shigemoto - Term ending 12/31/2027 C. Building Board of Appeals Julian M. John Melchor (Electrical) - Term ending 12/31/2027 d. Charter Review Commission Jaclyn K. Kaina - Term ending 12/31/2027 e. Civil Service Commission Aimee Lorenzo - Term ending 12/31/2027 Lauren O'Leary - Term ending 12/31/2027 Shelley Konishi - Term ending 12/31/2027 f. Cost Control Commission Alice E. Luck - Term ending 12/31/2027 Tyler R. Rodighiero - Term ending 12/31/2027 COUNCIL MEETING 8 NOVEMBER 27, 2024 g. KauaiHistoric Preservation Review Commission Carolyn R. Larson (History) - Term ending 12/31/2027 h. Liquor Control Commission Gerald S. Matsunaga - Term ending 12/31/2027 Paul Endo - Term ending 12/31/2027 i. Fire Commission Rodney N. Yama - Term ending 12/31/2027 Police Commission Merrilee Mia Ako - Term ending 12/31/2027 Lisa C. Knutson - Term ending 12/31/2027 Laurie Yoshida - Term ending 12/31/2027 C2024-240 Communication (11/14/2024) from Council Chair Rapozo, transmitting for Council consideration and confirmation, the following Council reappointments to various Boards and Commissions for the County ofKauai: a. KauaiHistoric Preservation Review Commission Kathleen Kikuchi-Samonte (At-Large) Term ending 12/31/2027 b. Public Access, Open Space, Natural Resources Preservation Fund Commission Manuel L. Cabral (Hanapêpe - Ele'ele) Term ending 12/31/2027 C2024-241 Communication (11/15/2024) from the County Engineer, transmitting for Council consideration, a Resolution Amending Resolution No. 2022-44And Resolution No. 2024-19, Authorizing The Mayor Or' The Director Of Finance Of The County Of Kauai To Enter Into An Intergovernmental Agreement With The State OfHawaii, Department OfHealth For. ALoan From The State Water Pollution Control Revolving Fund For The 'Ele'ele Subdivision Collection System Rehabilitation, Project No. C150050-12. C2024-242 Communication (11/21/2024) from Councilmember DeCosta, transmitting for Council consideration, a Resolution Urging The Mayor's Administration To Consider Adopting Legislation Similar To That Of Maui County And' The City And County Of Honolulu Relating To 'Aina Kupuna. Councilmember Kualiimoved to receive C2024-236, C 2024-237, C 2024-238, C2024-239, C 2024-240, C 2024-241 and C: 2024-242 for the record, seconded by Councilmember DeCosta. COUNCIL MEETING 9 NOVEMBER 27, 2024 Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: The motion to receive C 2024-236, C 2024-237, C 2024-238, C 2024-239, C2 2024-240, C 2024-241, and C 2024-242 for the record was then put, and carried by a vote of6 6:0:1 Councilmember Cowden was excused). Council Chair Rapozo: COMMUNICATIONS: The motion carries. Next item, please. C2024-243 Communication (11/05/2024) from the Chief of Police and Elliott K. Ke, Assistant ChiefofPolice, Police Operations Bureau, requesting Council approval to purchase unbudgeted equipment of an Axon Training Platform, at a cost of approximately $314,136.00, which will increase the frequency and level oftraining for Kauafi Police Department (KPD) police officers to improve performance, proficiency, and decision-making in use of force encounters. Councilmember Kualii moved to approve C 2024-243, seconded by Councilmember Carvalho. Council Chair Rapozo: Is there any discussion or public testimony? Thank you, Chief and Assistant Chief for being here. I do not think there are any questions. I appreciate the memorandum; it is quite explanatory, but if you want to go ahead and do a briefoverview, I will suspend the rules. There being no objections, the rules were suspended. TODD G. RAYBUCK, Chief of] Police: Yes, Iwould. Thank you, Council Chair and Members of the County Council. Thank you for the opportunity to review this Communication. Iwanted to highlight quickly for all ofyou and the community what this platform is. Back in March of 2024, Iinvited Members oft the Council, as well as the Mayor to come to our training center to see the new. Axon virtual reality training headset and the new Axon Taser 10 (T-10) taser. Councilmember Cowden and the Mayor were able to attend and utilize both of those platforms and saw the sufficient increase in technology and its advantages for us.Iwanted to come before you to thank you, first, for the opportunity to back track and talk about the mobile shooting platform that you approved in our last budget cycle. We recently putin the paperwork for that to start being built, and hopefully that will be delivered to us within the next six (6) to seven (7): months and staged at the Lihu'e headquarters. The. Axon Training Platform (ATP) will compliment that. It will be an eight-feet by forty-feet (8'x40') container that has been fabricated to have five (5) training rooms within it. Itwill be wireless fidelity (Wi-Fi) enabled, four (4) of those pods will have video capability in them, and it will allow our officers to receive virtual reality training, both in the use of the Taser-10, which is the platform we are moving to, as well as community training efforts. Virtual reality training is definitely the technology of the future across all industries, but it: is especially beneficial for law enforcement. For us, Axon is the leader in that to-date. When they came out in March, they only had three (3) actual scenarios in virtual reality, and today, there are: more than twenty (20). Those COUNCIL MEETING 10 NOVEMBER 27, 2024 scenarios include live training that will provide our officers opportunities go. through scenarios that involve domestic violence, autism, schizophrenia, suicidal ideation, peer intervention, particularly in homelessness and noise complaints, officers in crisis, substance use, disorders, law enforcement, and traffic stops. This type of training will allow our officers with very little manpower to be able to receive those types of trainings on a frequent basis in order to improve the services we provide to the community.lexpect that this platform, ifyou approve us to purchase this, will be delivered within the first quarter of 2025. The combination of the mobile shooting platform and the Axon training pod is going to give our officers the best training that our officers have had available to them in eighty (80) years, within just a few steps out oft the briefing room. We are the first police department in the country to receive the ATP and sO Axon has offered us full support in getting this up and successful and within six (6) months ofthe ATP being delivered, we will have the best trained police officers in the use of virtual reality and the Taser-10 in the country. Thank you for the opportunity to present this and the opportunity for us to purchase this platform for our department. Council Chair Rapozo: Thank you, Chief. Are there any questions for KPD? Ifr not, thank you. Is there anyone in the audience wishing to testify? There being no public testimony, the meeting was called back to order, and proceeded as follows: Council Chair Rapozo: Is there any further discussion?Iwill say that training has come a long way over the years. Chief, we probably got in the departments at about the same time, the early 1980s, and our training for the stress traininginvolved us going down to the range at night, and instructors pounding trash can lids, honking horns, blowing sirens to simulate real-world situations. I am glad you talked about the mental health issues because it is sO important that our officers get to recognize that. You cannot train that, you cannot duplicate that, you cannot grab someone off the street and say, "Hey, stand here while we...and go after the cop with a knife," and we will see ifhe tases the individual. Ialways had questions about virtual reality because it was: new technology, butIwas up in Oregon visiting my kids and my son and I went to a shooting range. He had a friend who was able to get us access to a virtual reality range that the police officers in that county used for training. It was incredible. You put on these...you use the service gun, but it is modified. The video scenarios were incredible. There is no way you can simulate that any other way. The more our officers can get trained in scenarios that they may never see, but having this readily available to get proficient in can only help. That is just the reality of it. Thank you for finding the technology and I am looking forward to having this installed and ready to go. Thank you. The motion to approve C2024-243 was then put, and carried by a vote of6 6:0:1 Councilmember Cowden was excused). Council Chair Rapozo: Ms. Fountain-Tanigawa: The motion carries. Next item, please. C2024-244 will be taken at 10:00 a.m. There being no objections, C2 2024-245 was taken out of order. COUNCIL MEETING 11 NOVEMBER 27, 2024 C2024-245 Communication (11/07/2024) from the Deputy Chief of] Police and Elliott K. Ke, Assistant ChiefofPolice, Police Operations Bureau, requesting Council approval of the indemnification of the standard of care provision contained in the Thales DIS USA, Inc. Agreement for Professional Services, to be used to access the Hawaii Driver License System (HDLS) which captures photographs, signatures, and fingerprints ofState of Hawaii driver license and State: identification card applicants. Councilmember Kualii moved to approve C 2024-245, seconded by Councilmember Carvalho. Council Chair Rapozo: Does anyone have any questions for KPD? Again, your memorandums are very thorough, sO thank you very much. Is there anyone in the audience wishing to testify? There being no public testimony, the meeting proceeded as follows: The motion to approve C2024-245 was then put, and carried by a vote of6:0:1 (Councilmember Cowden was excused). Council Chair Rapozo: The motion carries. Next item, please. C2024-246 Communication (11/08/2024) from the Emergency Management Administrator, requesting Council approval to receive and expend recurring United States Department ofHomeland Security (DHS) grant funds, via the State ofHawaii Agency (HI-EMA), int the amountof.150,00.00 with a 50% cost-match, for the Fiscal Year 2024 Emergency Management Performance Grant, which will support an existing Kauai Emergency Management Agency (KEMA) staff position (Emergency Management Staff Specialist), which supports day-to-day prevention, protection, mitigation, response, and recovery activities, along with travel for preparedness" trainings and exercises that County ofKauai staff are offered to attend. Department of Law Enforcement Hawaii Emergency Management Councilmember Kualii moved to approve C 2024-246, seconded by Councilmember Carvalho. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: The motion to approve C2024-246 was then put, and carried by a vote of 6:0:1 Councilmember Cowden was excused). Council Chair Rapozo: Motion carried. Nextitem, please. C2024-247 Communication (11/11/2024) from the Emergency Management Administrator, requesting Council approval of emergency vehicle designations for two (2) new Kauai Emergency Management Agency (KEMA) response vehicles to allow for installation and use of siren and flashing lightbar equipment, pursuant to Chapter 16, Kaua'i County Code, as amended. COUNCIL MEETING 12 NOVEMBER 27, 2024 Councilmember Kualii moved to approve C 2024-247, seconded by Councilmember Carvalho. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: The motion to approve C2024-247 was then put, and carried by a vote of 6:0:1 (Councilmember Cowden was excused). Council Chair Rapozo: Motion carried. Next item, please. C2024-248 Communication (11/13/2024) from the County Engineer, requesting Council approval to accept reimbursements from the State of Hawaii Department of Land and Natural Resources (DLNR) for two (2) staff members from the Department of Public Works (DPW) Engineering Division, in the amount of up to $3,000.00, for airfare, hotel, ground transportation, and per diem as a result of attending the Hawaii Floodplain Managers Conference, held in Honolulu from November 7, 2024 to November 8, 2024, which increased awareness about the National Flood Insurance Program (NFIP). Councilmember Kualii moved to approve C 2024-248, seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: The only thing I would ask from the Department of Public Works (DPW), you do not need to come up, but when this training has been completed, ifthe Council can get a briefing, because that is one of the most confusing in our county government, that floodplain management. When that has completed and they are trained up, they can come to the Council and do a presentation. Thank you. Councilmember Kagawa. Councilmember Kagawa: Over the years, we have had complaints about NFIP, its impact on areas that have been changed, and these folks who are making the decisions are from Oakland, California. The levees, for example, no breaches over one hundred (100) years, and then now it has changed, SO they have to raise it in order for them to comply. Why do they not do the improvements and then after that they are all good, but to say, Now, we are going to: raise your rates," when the levees have functioned. There is no reason to change when over one hundred (100) years, they have survived and are protected. When they call elected officials and we cannot do nothing about it, it is very frustrating. It is frustrating because DPW is on the same page, but they are just at the mercy of these people from the Mainland United States (mainland) who do not live here, have no relatives that this will affect, but they just impose this significant hike in their insurance when there is nothing that anyone can do with no warning. We need some connectivity with that and try to solve that problem. Thank you. COUNCIL MEETING 13 NOVEMBER 27, 2024 Council Chair Rapozo: Councilmember DeCosta: Councilmember DeCosta. : am going to agree with Councilmember Kagawa. I received many calls from the people who live on the Westside, especially those whol live near the Waimea levee. Iti is really sad that these people who live along the levee already have a wall set in place that takes about half of their two-story house as far as wind and view. Therefore, if you live in a two-story dwelling, your entire bottom half is looking at red dirt, grass burn, that is probably ten feet (10) high, ground level. Now, we are going up another escalate five feet (5) or maybe higher, you are basically going to be looking out your window on a dirt burn on a two-story house with no wind coming in. How sad is that? What is the reason? What reason can an engineer from Oakland or from somewhere else tell us that we need to raise our levee, because of a flood that has not happened yet, and that they only predicated that might happened? Whois to say thatlevee will even protect the homes ifit does happen? Thank you. Council Chair Rapozo: Thank you. Is there any further discussion? The motion to approve C 2024-248 was then put, and carried by a vote of6:0:1 (Councilmember Cowden was excused). Council Chair Rapozo: Motion carried. Next item, please. C2024-249 Communication (11/14/2024) from the Planning Director, requesting Council approval of the indemnification provisions contained in two (2) software subscription services: 1) Spline; and 2) inCitu. Spline and inCitu are educational software subscription services to supplement engagement efforts. Spline subscription services cost $20.00 on a monthly basis. inCitu subscription services cost $200.00 on a monthly basis. Council Chair Rapozo: Members, the Administration has requested a deferral on this. Before the motion to defer, is there anyone in the audience wishing tot testify? There being no public testimony, the meeting proceeded as follows: Councilmember Kualii moved to defer C 2024-249, seconded by Councilmember Bulosan, and carried by a vote of 6:0:1 (Councilmember Cowden was excused). Council Chair Rapozo: Motion carried. Next item, please. C2024-250 Communication (11/15/2024) from Darren Rose, Captain, Investigative Services Bureau, requesting Council approval of the indemmification provisions contained in the Magnet Forensics, LLC, GrayKey Software Service Agreement, for renewal of the GrayKey Software subscription to allow the Kauai Police Department (KPD) to remain equipped with advanced forensic tools that support KPD's commitment to effective and timely criminal investigations. COUNCIL MEETING 14 NOVEMBER 27, 2024 Councilmember Kualii moved to approve C 2024-250, seconded by Councilmember Carvalho. Council Chair Rapozo: Is there anyone in the audience wishing to testify? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: Is there any discussion? The motion to approve C 2024-250 was then put, and carried by a vote of 6:0:1 (Councilmember Cowden was excused). Council Chair Rapozo: LEGALDOCUMENT: Motion carried. Next item, please. C2024-251 Communication (11/06/2024) from the Director of Economic Development, recommending Council approval to enter into a Partnership Agreement with the State of Hawaii Office of Planning and Sustainable Development (OPSD), to collaboratively create an Economic Development District with the counties of Hawaii, Honolulu, and Maui which could lead to funding opportunities from the United States (U.S.) Department of Commerce Economic Development Administration (EDA). Hawaii Regional Economic Stewardship and Advancement Economic Development District Partnership Agreement Councilmember Kualii moved to approve C 2024-251, seconded by Councilmember Bulosan. Council Chair Rapozo: Nalani, are, you here for this? There being no objections, the rules were suspended. NALANI K. KAAUWAI BRUN, Director of Economic Development: I am here. Council Chair Rapozo: ofwhat we are planning to do? Ms. Kaauwai Brun: Canyou provide the Council with an overview Aloha, good morning. Nalani Brun, Director of] Economic Development. This is really at its starting stages. The Office ofPlanning and Sustainable Development approached all the counties and asked ifwe can all join together. They have seen many other areas around the country getting funding through EDA. This is the route that they are taking. We want to geton the balll before the next year starts and get going. All of the counties are involved, sO everyone is planning to sign off. Once we get permission, there will be another one. Also, involved ist the University of Hawaii. They are going to be supporting the system, the labor unions are supporting it, and then all the different counties. The Department of COUNCIL MEETING 15 NOVEMBER 27, 2024 Business, Economic Development & Tourism (DBEDT) will be the lead for this. They will be organizing us and helping us write whatever grants we need to the EDA. sixteen (16) members of this policy board that are going to be created or is created, there is no. legislative branch people. There is the state, the mayors, the development Council Chair Rapozo: Are there any questions? When I look at the board. Ms. Kaauwai Brun: Council Chair Rapozo: Ms. Kaauwai Brun: Council Chair Rapozo: Ms. Kaauwai Brun: Council Chair Rapozo: Right. To me, I would think that the four (4) Economic Development chairs of the Council should be on that board as well. Yes. We will convey that to James ("Jimmy") Tokioka. He should know, he was a councilmember before. That is true. Alotofthese proposals will require legislation and it would just make sense to have a representative from each...even ifit is one (1) representative from our Hawaii State Association of Counties (HSAC), which is what a. lot of the state boards do. They will ask HSAC to come up with one (1) or two (2) representatives to sit on that board. Staff, can we send something over to Jimmy and ask for that to be considered? Ms. Kaauwai Brun: Council Chair Rapozo: Ms. Kaauwai Brun: Council Chair Rapozo: Thati is a great idea. Thank you. Thank you Is there anyone in the audience wishing to testify? There being no public testimony, the meeting was called back to order, and proceeded as follows: Council Chair Rapozo: Is there any discussion? The motion to approve C2024-251 was then put, and carried by a vote of 6:0:1 (Councilmember Cowden was excused). Council Chair Rapozo: Motion carried. Next item, please. COUNCIL MEETING COMMITTEE REPORT: COMMITTEE OF THE WHOLE: 16 NOVEMBER 27, 2024 A report (No. CR-COW 2024-24) submitted by the Committee of the Whole, recommending that the following be Approved on Second and Final Reading: "Bill No. 2934 - A BILL FOR AN ORDINANCE AMENDING ORDINANCE NO. B-2024-897, AS AMENDED, RELATING TO THE CAPITAL BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII, FOR THE FISCAL YEAR JULY 1, 2024 THROUGH JUNE 30, 2025, BY REVISING THE AMOUNTS ESTIMATED IN THE GENERAL FUND CIP (Kekaha Faye Park, Waimea Athletic Field, and Hanapèpe Stadium Park Councilmember Kualii moved for approval of the report, seconded by $1,650,000.00)," Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: The motion for approval of the report was then put, and carried by a vote of 6:0:1 (Councilmember Cowden was excused). Council Chair Rapozo: Motion carried. Next item, please. RESOLUTIONS: Resolution No. 2024-30 - RESOLUTION CONFIRMING MAYORAL APPOINTMENT TO THE BUILDING BOARD OF APPEALS (Nathan A. Wood - Bulding/Construction) Councilmember Kuali'i moved for adoption of Resolution No. 2024-30, seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: Councilmember Kagawa: Councilmember Kagawa. would like to thank the Constructors Association ofKaua'i (CAK) for what they have done through the approval oft the new Building Code and thank Troy and the Building Superintendent, and you, Council Chair. We took incumbents from the Contractors Association and made sure that some of the concerns they had with new technology, Iheard that there is Styrofoam walls now being made, there are plastic walls, but is that going to be something that the County of Kauai going to approve, and ifit does not get approved through the normal process, there is the Building Boards of Appeals now that we asked for on COUNCIL MEETING 17 NOVEMBER 27, 2024 behalf of the Contractors Association to make sure that new technology is given its fair due diligence and review, and that Kauaiis a place that we will be open as long as it protects the house, it is not environmentally harmful-that we will have open eyes with the Building Board of Appeals being created. Thank you. Council Chair Rapozo: Thank you. Is there any further discussion? Roll call. The motion for adoption of Resolution No. 2024-30 was then put, and carried by the following vote: FOR. ADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tangawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. Nexti item, please. Resolution No. 2024-31 - RESOLUTION CONFIRMING: MAYORAL APPOINTMENTTOTHE SALARY COMMISSION (Bernadette Y.A. AkionaA Arruda) Councilmember Kualii moved for adoption of Resolution No. 2024-31, seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-31 was then put, and carried FOR ADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. rountain-Tamgawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. Nextitem, please. COUNCIL MEETING 18 NOVEMBER 27, 2024 Resolution No. 2024-32 - RESOLUTION CONFIRMING: MAYORAL Councilmember Kualii moved for adoption of Resolution No. 2024-32, REAPPOINMENTTO THE BOARD OF ETHICS (Chantal Zarbaugh) seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-32 was then put, and carried FOR. ADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tanigawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. Next item, please. Resolution No. 2024-33 - RESOLUTION CONFIRMING: MAYORAL Councilmember Kualii moved for adoption of Resolution No. 2024-33, REAPPOINMENTTO THE BOARD OF ETHICS (John Latkiewicz) seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-33 was then put, and carried FOR. ADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tangawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. Next item, please. COUNCIL MEETING 19 NOVEMBER 27, 2024 Resolution No. 2024-34 - RESOLUTION CONFIRMING MAYORAL REAPPOINTMENTTO THE BOARD OF WATER SUPPLY (Tom Shigemoto) Councilmember Kualii moved for adoption of Resolution No. 2024-34, seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-34 was then put, and carried FOR. ADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tangawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. Next item, please. Resolution No. 2024-35 - RESOLUTION CONFIRMING: MAYORAL REAPPOINTMENT TO THE BUILDING BOARD OF APPEALS (Julian M. John Melchor - Electrical) Councilmember Kualii moved for adoption of Resolution No. 2024-35, seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-35 was then put, and carried FOR. ADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tangawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. Next item, please. COUNCIL MEETING 20 NOVEMBER 27, 2024 Resolution No. 2024-36 - RESOLUTION CONFIRMING: MAYORAL REAPPOINTMENTTO THE CHARTER REVIEW COMMISSION (Jaclyn K. Kaina) Councilmember Kualii moved for adoption of Resolution No. 2024-36, seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded.as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-36 was then put, and carried FOR. ADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tanigawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. Next item, please. Resolution No. 2024-37 - RESOLUTION CONFIRMING: MAYORAL REAPPOINTMENT TO THE CIVIL SERVICE COMMISSION (Aimee Lorenzo) Councilmember Kualii moved for adoption of Resolution No. 2024-37, seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-37 was then put, and carried FOR ADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountai-Tangawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. Next item, please. COUNCIL MEETING 21 NOVEMBER 27, 2024 Resolution No. 2024-38 - RESOLUTION CONFIRMING: MAYORAL REAPPOINTMENTTO THE CIVIL SERVICE COMMISSION (Lauren O'Leary) Councilmember Kualii moved for adoption of Resolution No. 2024-38, seconded by Councilmember DeCosta. Council Chair Rapozo: Ist there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-38 was then put, and carried FOR. ADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tanigawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. Next item, please. Resolution No. 2024-39 - RESOLUTION CONFIRMING MAYORAL REAPPOINMENTTO THE CIVILSERVICE COMMISSION (Shelley Konishi) Councilmember Kualii moved for adoption of Resolution No. 2024-39, seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-39 was then put, and carried FORADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tangawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. Next item, please. COUNCIL MEETING 22 NOVEMBER 27, 2024 Resolution No. 2024-40 - RESOLUTION CONFIRMING: MAYORAL REAPPOINTMENTTO THE COST CONTROL COMMISSION (Alice E. Luck) Councilmember Kualii moved for adoption of Resolution No. 2024-40, seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-40 was then put, and carried FOR. ADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tanigawa: Council Chair Rapozo: Resolution No. 2024-41 Six (6) ayes, one (1) excused. Next item, please. RESOLUTION CONFIRMING: MAYORAL REAPPOINIMENTTO THE COST CONTROL COMMISSION (Tyler. R. Rodighiero) Councilmember Kualii moved for adoption of Resolution No. 2024-41, seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-41 was then put, and carried FOR. ADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tangawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. Next item, please. COUNCIL MEETING 23 NOVEMBER 27, 2024 Resolution No. 2024-42 RESOLUTION CONFIRMING: MAYORAL REAPPOINTMENT TO THE KAUAT HISTORIC PRESERVATION REVIEW COMMISSION (Carolyn R. Larson - History) Councilmember Kualii moved for adoption of Resolution No. 2024-42, seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-42 was then put, and carried FORADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tanigawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. Next item, please. Resolution No. 2024-43 = RESOLUTION CONFIRMING: MAYORAL REAPPOINTMENT TO THE LIQUOR CONTROL COMMISSION (Gerald S. Matsunaga) Councilmember Kualii moved for adoption of Resolution No. 2024-43, seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-43 was then put, and carried FORADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tanigawa: Six (6) ayes, one (1) excused. COUNCIL MEETING 24 NOVEMBER 27, 2024 Council Chair Rapozo: Next item, please. Resolution No. 2024-44 - RESOLUTION CONFIRMING MAYORAL REAPPOINTMENT TO THE LIQUOR CONTROL COMMISSION (Paul Endo) Councilmember Kualii moved for adoption of Resolution No. 2024-44, seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-44 was then put, and carried FORADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. rountain-Tanigawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. Motion carried. Next item, please. Resolution No. 2024-45 = RESOLUTION CONFIRMING: MAYORAL Councilmember Kualii moved for adoption of Resolution No. 2024-45, REAPPOINTMENTTO THE FIRE COMMISSION (Rodney N. Yama) seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-45 was then put, and carried FORADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tanigawa: Six (6) ayes, one (1) excused. COUNCIL MEETING 25 NOVEMBER 27, 2024 Council Chair Rapozo: Next item, please. Resolution No. 2024-46 - RESOLUTION CONFIRMING: MAYORAL Councilmember Kualii moved for adoption of Resolution No. 2024-46, REAPPOINMENTTO THE POLICE COMMISSION (Merrilee Mia. Ako) seconded by Councilmember DeCosta. Council Chair Rapozo: Ist there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-46 was then put, and carried FORADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tangawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. Nexti item, please. Resolution No. 2024-47 - RESOLUTION CONFIRMING MAYORAL Councilmember Kualii moved for adoption of Resolution No. 2024-47, REAPPOINTMENTTO THE POLICE COMMISSION (Lisa C. Knutson) seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-47 was then put, and carried FOR. ADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0 0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tanigaw: Six (6) ayes, one (1) excused. COUNCIL MEETING 26 NOVEMBER 27, 2024 Council Chair Rapozo: Next item, please. Resolution No. 2024-48 - RESOLUTION CONFIRMING: MAYORAL Councilmember Kualii moved for adoption of Resolution No. 2024-48, REAPPOINTMENTTO THE POLICE COMMISSION (Laurie Yoshida) seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-48 was then put, and carried FORADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tangawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. Motion carried. Next item, please. Resolution No. 2024-49 - RESOLUTION CONFIRMING: COUNCIL REAPPOINTMENT TO THE KAUAT HISTORIC PRESERVATION REVIEW COMMISSION (Kathleen Kikuchi-Samonte -A At-Large) Councilmember Kualii moved for adoption of Resolution No. 2024-49, seconded by Councilmember DeCosta. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-49 was then put, and carried FOR. ADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tanigawa: Six (6) ayes, one (1) excused. COUNCIL MEETING 27 NOVEMBER 27, 2024 Council Chair Rapozo: Motion carried. Next item, please. Resolution No. 2024-50 - RESOLUTION CONFIRMING: COUNCIL REAPPOINTMENT TO THE PUBLIC ACCESS, OPEN SPACE, NATURAL RESOURCES PRESERVATION FUND COMMISSION (Manuel L. Cabral - Hanapèpè- - Ele'ele) Councilmember Kualii moved for adoption of Resolution No. 2024-50, seconded by Councilmember DeCosta. Council Chair Rapozo: Ist there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: by the following vote: Roll call. The motion for adoption of Resolution No. 2024-50 was then put, and carried FOR. ADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tanigawa: Council Chair Rapozo: Resolution No. 2024-51 Six (6) ayes, one (1) excused. Next item, please. RESOLUTION AMENDING RESOLUTION NO. 2022-44 AND RESOLUTION NO. 2024-19, AUTHORIZING: THE MAYOR OR THE DIRECTOR OF FINANCE OF THE COUNTY OF KAUAT TO ENTER INTO AN INTERGOVERNMENTAL AGREEMENT WITH THE STATE OF HAWAII, DEPARTMENT OF HEALTH FOR A LOAN FROM THE STATE WATER POLLUTION CONTROL REVOLVING FUND FOR THE ELEELE SUBDIVISION COLLECTION SYSTEM REHABIEITTATION, PROJECT NO. C150050-12 Councilmember Kualii moved for adoption of Resolution No. 2024-51, seconded by Councilmember DeCosta. Council Chair Rapozo: For the public's information, we had lengthy discussion when this first came up for the Sewer Revolving Fund loan of five million dollars ($5,000,000). This is an amendment to increase that to five million five hundred thousand dollars ($5,500,000), an addition five hundred thousand dollars ($500,000). Are there any questions? Is there anyone in the audience wishing to testify? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: Roll call. COUNCIL MEETING 28 NOVEMBER 27, 2024 The motion for adoption of Resolution No. 2024-51 was then put, and carried by the following vote: FOR. ADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None Ms. Fountain-Tanigawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. Nextitem, please. Resolution No. 2024-52 = RESOLUTION URGING THE MAYOR'S ADMINISTRATION TO CONSIDER ADOPTING LEGISLATION SIMILAR TO THAT OF MAUI COUNTY AND THE CITY AND COUNTY OF HONOLULU RELATING TO 'AINA KUPUNA Councilmember Kualii moved for adoption of Resolution No. 2024-52, seconded by Councilmember Kagawa. Council Chair Rapozo: With that, this Resolution is being introduced by Councilmember DeCosta, so I will turn it over to him, sO he can provide a brief overview of what this Resolution is trying to entail. Let me just say, the original intent was toj provide or introduce aj proposed draft bill to this Council regarding Aina Kupuna programs that they have on the City and County ofHonolulu and the County of Maui. Before a proposed draft bill can be introduced on this floor, it goes through a legal review with our Office of the County Attorney. Councilmember DeCosta has just introduced it. He had been working on it for quite a while in the past, but he never did the legal review, formal legal review, sO the timing was just not right for the proposed draft bill to be introduced today, but the Resolution is and with that, I will turn it over to Councilmember DeCosta. Councilmember DeCosta: Thank you, Council Chair. Iworked on thisi in my first term, had a little bit of traction, tried to work on it in this term, had very little traction, and Ijust wanted to send this Resolution urging the Councimembers, going forward, who will be sitting at the table here, expect for Councilmember Kagawa and myself, to look after the local taxpayers on their property. O'ahu and Maui counties passed this. They have some legal things they are treading through, soIthink this Council, with the Office of the County Attorney's review, will come up with a competent bill that can serve our local people. Basically, what this does is it provides a flat tax for local families who have been on the island. Maui has a 55-year or longer, and O'ahu has an 80-year or longer. The way Ilook at it is that these are going to protect longtime local families that have been here on the island and some of these families are the ones who have been here before the influx of the western COUNCIL MEETING 29 NOVEMBER 27, 2024 invasion, coming here upon the native kanaka. This is a very powerful Resolution urging our Administration, urging our Council-let us look at ways on how we can stop the escalating real property tax of these homes when these billionaires come in, buy a home next to yours, and assessed value goes up. The County has a three percent (3%) cap on the escalating rise of the assessment, but five (5), ten (10), fifteen (15) years down the road, you still are going to be paying much more property taxes. This is a way to encourage our Council to have the local families in mind when you move forward. Thank you. Council Chair Rapozo: Thank you. (Councilmember Kagawa was noted as not present.) Council Chair Rapozo: What Maui and the City and County of Honolulu is doing is on these properties that are subject to whatIc call the "artificial increase" in assessments because ofthe ridiculous amount ofmoney thati is being paid for our properties, more SO on the shorelines... (Councilmember Kagawa was noted as present.) Council Chair Rapozo: :. more sO on the North Shore, Po'ipu, all of these areas where these homes are being sold for fifteen million dollars ($15,000,000) or twenty million dollars ($20,000,000), it is impacting the local residents that live there. The requirement for this benefit, as Councilmember DeCosta said, is fifty (50) or eighty (80) years, that family had to have been owners of that property. All these billionaires moving in will not have any ability to use this program. Unfortunately, whatis happening is the property taxes on some ofthese coastal lands that have been in families for generations, I mean fifteen thousand dollars ($15,000), twenty thousand dollars ($20,000), thirty thousand dollars ($30,000) per: year. (Councilmember Kagawa was noted as not present.) Council Chair Rapozo: They simply cannot afford it, sO the only optioni is to sell, to sell to the billionaire, and we want to stop that. This potential bill would do that. There are not very many generational families...the way it is framed or the way the draft of the bill was framed was that it would be only for properties that are in the Special Management Area (SMA), which would be the coastline, somewhere close to the ocean, because those are the most impacted, but anytime we can do something on this Council to preserve that owner's right to keep their land,I think is something we need to really consider. I appreciate Councilmember DeCosta for putting this forward and we will have the discussion with the. Administration and the Real Property Tax people to see number one: how many properties are actually affected; number two, how many people would actually benefit, making sure that we do notinadvertently give these rich millionaires or billionaires a loophole where they COUNCIL MEETING 30 NOVEMBER 27, 2024 can get cheap taxes, because that is not the intention of this action. Thank you. Go ahead. Councilmember DeCosta: Iwanted to add. It will give you folks and our Office of the County Attorney a lot oft time to review what Maui and O'ahu have done and try to improve it, sO we can make this bill the best possible bill for our people of Kauai. Thank you. Council Chair Rapozo: Thank you. Is there any further discussion before we open it up to public testimony? Is there anyone in the audience wishing to testify? There being no public testimony, the meeting proceeded as follows: Council Chair Rapozo: motion is to approve. Roll call. Is there any closing discussion? If not, the The motion for adoption of Resolution No. 2024-52 was then put, and carried by the following vote: FORADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6*, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None (*Pursuant to Rule No. 5(b)ofthe Rules oft the County of1 Kauat, Councimember Kagawa was noted as silent (not present), but shall be recorded as an affirmative for the motion.) Ms. Fountain-Tangawa: Council Chair Rapozo: BILL FOR SECOND READING: Six (6) ayes, one (1) excused. Next item, please. Bill No. 2934 - A BILL FOR AN ORDINANCE AMENDING ORDINANCE NO. B-2024-897, AS AMENDED, RELATING TO THE CAPITAL BUDGET OFTHE COUNTY OF KAUAI, STATE OF HAWAII, FOR THE: FISCAL YEARJULY 1, 2024 THROUGH JUNE 30, 2025, BY REVISING THE AMOUNTS ESTIMATED IN THE GENERAL FUND CIP (Kekaha Faye Park, Waimea Athletic Field, and Hanapêpe Stadium Park 1 $1,650,000.00 COUNCILMEETING 31 NOVEMBER 27, 2024 Councilmember Kualii moved for adoption of Bill No. 2934 on second and final reading, and that it be transmitted to the Mayor for his approval, seconded by Councilmember Bulosan. Council Chair Rapozo: Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as follows: The motion for adoption of1 Bill No. 2934 on second and final reading, and that it be transmitted to the Mayor for his approval was then put, and carried by the following vote: FORADOPTION: AGAINST ADOPTION: Bulosan, Carvalho, DeCosta, Kagawa Kualii, Rapozo None TOTAL-6*, TOTAL-0, TOTAL-1, TOTAL-0. EXCUSED & NOT VOTING: Cowden RECUSED & NOT VOTING: None (*Pursuant to. Rule. No. 5(b)ofthel Rules ofthe County yofKauai, Councilmember Kagawa was noted as silent (not present), but shall be recorded as an affirmative for the motion.) Ms. Fountain-Tanigawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. We have an Executive Session. Can you read us into the Executive Session item, please? EXECUTIVE SESSION: ES-1138 Pursuant to Hawaii Revised Statutes Sections 92-4 and 92-5(a)(4), and Kauai County Charter Section 3.07(E), the Office of the County Attorney requests an Executive Session with the Council, to provide Council with a briefing and request authority for a possible settlement in the litigation entitled Dayne Greene and Neina Greene V. County of Kauai Housing Agency, et al., Civil No. 24-00239 JAO-KJM. This briefing and consultation involves consideration oft the powers, duties, privileges, immunities, and/or liabilities of the Council and the County as they relate to this agenda item. Councilmember Kualii moved to convene in Executive Session for ES-1138, seconded by Councilmember DeCosta. Council Chair Rapozo: Seeing none, roll call. Is there any discussion or public testimony? There being no public testimony, the meeting proceeded as: follows: COUNCIL MEETING 32 NOVEMBER 27, 2024 The motion to convene in Executive Session for ES-1138 was then put, and carried by the following vote: FOR EXECUTIVE SESSION: AGAINST EXECUTIVE SESSION: None EXCUSED & NOT VOTING: RECUSED & NOT VOTING: Bulosan, Carvalho, DeCosta, Kagawa, Kualii, Rapozo TOTAL-6*, TOTAL-0, TOTAL-1, TOTAL-0. Cowden None (*Pursuant to Rule No. 50)ofthe-Rulesofthe CountyofKauai, Councilmember Kagawa was noted as silent (not present), but shall be recorded as an affirmative for the motion.) Ms. Fountain-Tangawa: Council Chair Rapozo: Six (6) ayes, one (1) excused. With that, we will recess until 10:00 a.m., and we will reconvene with the audit discussion. Members, please report to the Executive Session room. There being no objections, the Council recessed at 9:23 a.m., to convene in Executive Session. The Council reconvened at 10:05 a.m., and proceeded as follows: (Councilmember Kagawa was noted as not present.) Council Chair Rapozo: Before we getintoouritem, Matt, we did have an Executive Session. There being no objections, the rules were suspended. MATTHEW M. BRACKEN, County Attorney: An Executive Session for ES-1138 was held. There was a discussion regarding a settlement and a pending lawsuit. The discussion will remain confidential and there is nothing to disclose to the public at this time. Council Chair Rapozo: proceeded as follows: Council Chair Rapozo: Thank you very much. There being no public testimony, the meeting was called back to order, and With that, can you read the last item? C2024-244 Communication (11/07/2024) from Council Chair Rapozo, requesting the presence of the Managing Director, Director of Finance, and representatives from N&K CPAs, Inc., to discuss the Annual Comprehensive Financial Report (ACFR), Single Audit Reports, and Management Advisory Report for the Fiscal Year Ended June 30, 2023. COUNCIL MEETING 33 NOVEMBER 27, 2024 Councilmember Kualii moved to receive C 2024-244 for the record, seconded by Councilmember Carvalho. Council Chair Rapozo: Iwill have our Auditors come up. We will have the Auditors do their complete presentation, and then we will open it up for questions after that. There being no objections, the rules were suspended. JOHN PAUL BAUTISTA, Audit Principal, N&K CPAs, Inc.: Good morning, everyone. Thank you for giving us the opportunity to come here to today to present the Annual Comprehensive Financial Report. Council Chair Rapozo: Mr. Bautista: Could you state your name for the record? L am sorry. My name is John Bautista, the Audit Principal for the engagement. To my right is Andrew Ho, the Audit Senior Manager for the engagement for Fiscal Year (FY) 2023. We will be presenting the Annual Comprehensive Financial Report, Single Audit Reports, and Management Advisory Report today. I would like to start by thanking the Department of Finance and the various personnel across all the departments who helped us get to this point to even complete the FY 2023 audit. It was a combined team effort, sO I thank everyone in the County. With that, I will go on to the next slide. Again, we will go over the three (3) different reports. I will go over the Annual Comprehensive Financial Report (ACFR), which is the financial statements of the County. We will also go over the Single Audit Reports, this is based off of the Federal funds expended by the County, and finally, the Management Advisory Report. This is an additional recommendation that we came across during this year's audit. Starting off with the County's ACFR...this is that yellow book...on page 11, you will see the Certificate of Achievement for Excellence in Financial Reporting which is issued by the Government Finance Officers Association (GFOA). The GFOA reviews and ascertains that the County's ACFR is prepared in accordance with government standards, is transparent, and provides full disclosure. Going on to the different sections of the ACFR, it starts off with an Introductory Section, which includes both the transmittal prepared by the Department of Finance and also a managements discussion and analysis that goes over the entire ACFR itself. Ifyou turn to page 14, this is our independent auditor's report. In the second paragraph of that report, we state that we issued an unmodified opinion on the County's ACFR and thatitis presented fairly, this is known as a "clean opinion," under the standards of the generally accepted auditing standards (GAAS) and Government Auditing Standards issued by the Comptroller General of the united States (Government Auditing Standards). For an audit, we obtain reasonable assurance thatthe ACFR is free of material misstatement, including understanding the County's internal controls and performing audit procedures related to a risk assessment. Ifyou turn to page 17, we state that we: issue another report under GovermentAuditing Standards that we will discuss on a separate slide. After a report, the ACFR is then comprised of the various components of the government-wide financial statements, individual fund financial statements, notes to the financial statements that we will touch upon, other required supplementary information, and finally the unaudited statistical COUNCIL MEETING 34 NOVEMBER 27, 2024 section. We will go over noted items in each of these sections in the next couple of slides. Starting with your Statement of Net Position on page 31, this is the County's balance sheet. Similar to the prior year when the County implemented Government Accounting Standards Board (GASB) 87 related operating leases, during the current year, the County implemented GASB 96. This is related to Subseription-Based Information Technology Agreements (SBITA). This would be the County's accounting software or real property tax (RPT) software, as examples. The guidance implemented requires the recognition of a subscription liability and a right-to-use subscription assets that were previously recognized as operating leases. In prior years, payments were recognized as expenses when they were incurred and the related asset was not recognized on your Statement of Net Position. During this implementation, there was an adjustment of five million four hundred thousand dollars ($5,400,000) to assets and liabilities as of the beginning of FY 2023. Several disclosure notes were included in the ACFR that we will cover on later slides. Some other significant fluctuations on your Statement of Net Position is a large increase of seventy-eight) million one. hundred thousand dollars ($78,100,000) ini investments due to additional moneys invested by the County from increased revenues. You will see these increased revenue sources on your StatementorActivties: Long-term liabilities due past one (1) year decreased seventeen million dollars ($17,000,000) and this is partially attributable to an eleven-million-eight-hundred-thousand-dollar decrease to al landfill prior period adjustment. Fluctuations in pension and post-employment benefit liabilities decreased by twelve million dollars ($12,000,000), but this is based off of third-party actuary reports that drive the year-to-year changes, including related deferred inflows and outflows. Moving on to your Statement of Activities on page 32, this is your income statement. Starting on the top left, under Program Revenues and Expenditures, there was a decrease of twenty-nine million dollars ($29,000,000) in expenditures or expenses attributable to the Coronavirus. Aid, Relief, and Economic Security (CARES) reliefor CARES disaster reliefprojects to fix roads and bridges along with Emergency Rental Assistance payments. Both decreases correspond to the operating grants and contributions revenue column to the right ofit. If you go to the bottom of the page, under your General Revenues, real property taxes had an increase of twenty percent (20%). This is based off of new construction and reclassification of several improved properties into the ResidentialInvestor tax class, which is one ofthe higher tax classes of the County. The County Transient Accommodations Tax (TAT) also increased due to continued growth of tourism after the pandemic. Finally, on the bottom you will see that increase to beginning that position for that prior period of adjustment to the landfill. We will cover that in Note 20 of the disclosure notes. Your Governmental Fund Financial Statements presents each individual fund's financial balance sheet and income statement. Some notable fund fluctuations are in their net] positions. Ifyou turn to page 36, some ofthese funds have fluctuations in line items. All the way to the left of that long sheet, the County's General Fund, there were increases of that thirty-one million six hundred thousand dollars ($31,600,000) in RPT and thirteen million three hundred thousand dollars ($13,300,000) in TAT revenues that we covered in the Statement of. Activities and shown on there as well. This was offset by eleven million nine hundred thousand COUNCIL MEETING 35 NOVEMBER 27, 2024 dollars ($11,900,000) in expenditures which is attributable to the implementation of the GASB 96 subscription leases. All the way to the right in the County's General Capital Improvement Fund, there was increase to that fund for budgeted transfers in of twenty-five million seven hundred thousand dollars ($29,700,00). This is just related to the expected timing of new projects, start of projects, and ongoing projects offset by expenditures. All other major funds had comparable changes year to year. Moving on to the disclosure notes for your ACFR which begins on page 51,I will now go over the new notes or to the changes to notes from the prior year. They are mostly related to GASB 96 implementation. Ifyou turn to page 75, this is your detailed notes on your capital assets. Ifyou look toward the bottom of that] page,you will see that subseription-based lease assets that have been adjusted for as of July 1, 2022. The ending that value of six million dollars ($6,000,000) is part ofyour Statement of] Net Position as an asset that we went over earlier. This presentation is just like the prior year when the County implemented GASB 87 for operating leases. Ifyou turn to page 92, this is also a new disclosure. This is the minimum obligations under these arrangements for the remainder of their lease terms and provides additional: information on the top ofwhatexactly these types ofleases are. Again, this is the same type of verbiage included for the right-to-use leases under GASB87. Disclosures related to the landfill closure and post-closure costs begin on page 109 to page 110. Again, there was a reduction in the prior years in overall landfill liability for a prior period adjustment of eleven million eight hundred thousand dollars ($11,800,000). This is further detailed on page 115. When you restate the prior landfill liability, there is only a slight increase of two million nine hundred thousand dollars ($2,900,000) year to year based off of updated costs for all operating landfills of the County. On page 115, Note 20 discusses the impact of the prior period adjustment for the Kekaha Landfill Phase II misstatement on both the County's ending net position and the change in net position, as of June 30, 2022. Additional information and details on the prior period adjustment will be covered when we get to the single audit. Other than GASB 96implementation, the ACFR was pretty straightforward. There were no major changes other than those disclosures and the prior period adjustment. Do I continue on to the Single Audit Reports? Council Chair Rapozo: Mr. Bautista: Single Audit Reports. Yes, please. Okay. I will pass it off to Andrew to cover the ANDREW HO, Audit Senior Manager, N&K CPAs, Inc.: Hi. As John mentioned, I will be covering the Single Audit Reports as well as the Management Advisory Report. Just to start off, in that single audit packet, page 6 covers the report on internal control over financial reporting and on compliance and other matters. This is in accordance to Government Auditing Standards. The report does mention internal control deficiencies. There are five (5) that are determined to be "material weaknesses" and two (2) that we noted as "significant deficiencies." Later, we will get into what the definition of those items are. Page 9 through page 12 is your Single Audit Reports that specifically covers compliance in regard to major Federal programs. It also discusses whether or not there are any material weaknesses or significant deficiencies over internal control over compliance, and it discusses the COUNCIL MEETING 36 NOVEMBER 27, 2024 County's schedule ofexpenditures of Federal awards, which is fairly stated. The key thing thatIam going to talk about today, which is the overall summary, is on page 22 of the report. This is your summary of auditor's results. It goes over the financial statements and mentions, as John mentioned, that we have an unmodified opinion for the County's financial statements in accordance with the generally accepted accounting principles (GAAP). It does mention internal control over financial reporting deficiencies, sO overall there are five (5) material weaknesses and two (2) significant deficiencies. With regard to the County's Federal awards and compliance, we have an unmodified opinion and no findings regarding the County's controls over compliance. Further down, it lists thej programs that were audited as major programs for the FY ended 2023. There are three (3) programs, sO we audited the Coronavirus State and Local Fiscal Recovery Funds program, the Emergency Rental Assistance program, and lastly, Section 8 Housing Choice Vouchers. The last thing to note regarding the auditor's results is that the County audit did not qualify as a low-risk auditee in the current year due to their being prior year material weakness findings. Council Chair Rapozo: Mr. Ho: That means we are a high-risk auditee? That is correct. Next, we will go over a brief definition on the types of findings. First off, we have a material weakness, sO that is ad deficiency or a combination of deficiencies in internal control that would prevent or detect a material misstatement for the financial statements. In regard to Federal awards, that is preventing or detecting material noncompliance. Materiality is determined based upon the County's financial information for that particular year. Significant deficiency would be a deficiency or a combination of deficiencies in internal control that are less severe, but are important enough to merit attention to governance yourselves. Lastly, other reportable findings are findings that are reported or required to be reported in regard to noncomplance in relation to either the Uniform Guidance or compliance supplement and other matters. I will go over the findings that came up. Council Chair Rapozo: Councilmember DeCosta: Are there any questions up to this point? Go Inoticed in your type of findings, you twice ahead. mentioned deficiencies in internal control. Who is the County's internal control? Is that the Department ofHuman Resources (HR)? Who is the internal control? Mr. Bautista: Not necessarily. (Councilmember Kagawa was noted as present.) Mr. Bautista: Each department would have their internal But here you folks are saying that there are controls separately for what type of processes that they have. Councilmember DeCosta: deficiencies. Deficiencies means there is something wrong and it is in the internal control. Is the internal control the department that has the deficiencies? Mr. Bautista: Yes. COUNCIL MEETING 37 NOVEMBER 27, 2024 Councilmember DeCosta: Those people in charge oft that department are either allowing the deficiencies or cannot see that there is a deficiency happening, correct? Mr. Bautista: There might be controls that could be improved in order to prevent a deficiency from occurring, correct. Councilmember DeCosta: Council Chair Rapozo: Okay, thank you. Are there any other questions on the presentation up until this point? WhatI want to do at this point is as we get to the different findings, we will do one (1) finding and then we will open it up for questions after that specific finding. If we need to bring up the Administration, we can bring them up as well. 2023-001 is the first one. Mr. Ho: The first financial statement finding, 2023-001, Improve Controls Over Financial Reporting. This is listed as a material weakness. This is a new finding, sO in a nutshell, numerous instances were noted of post-closingjournal entries across various audit areas. Substantially all oft the entries were: related to adjustments that should have been made by the County either before or during the year-end closing process and include the following: year-end recurring accruals and reconciling entries to County records, closing of interfund activity, and capital outlay activities. Council Chair Rapozo: Mr. Bautista: For the nonaccounting people, what is that Based off of the 2023 financial statements, it telling us? Basically, the County is not making adjustments in a timely fashion. was not timely, but it was because there were numerous instances of personnel that left that position around the timing of when processes should have been closing. all the findings, right? The County had turnover. People left, and apparently the County did not have...andI: am not sure who to ask, but the County did not have a succession plan, maybe? In other words, when they left, when a chunk ofe employees left, all the knowledge went. When Ilook at adjustments, when you are talking about adjustments, year-end recurring accruals and reconciling entries to County records, that is sort of basic, right? Is that not basic accounting in a corporation? Is that not Council Chair Rapozo: Iknow the cause it pretty much constant with just a routine thing? Mr. Bautista: for an annual fiscal year. That would just be the general closing process Right, so I guess my concern is that when the Council Chair Rapozo: stopped. Is that what happened? Mr. Bautista: County lost two (2) or SO employees...you can come up, Reiko..basically, everything From my understanding, there were vacancies in the Department of Finance, but also changes in key positions in other COUNCIL MEETING 38 NOVEMBER 27, 2024 departments as well that all contributed to this material weakness along with personnel who were on leave. Council Chair Rapozo: Maybe Reiko can help us. REIKO MATSUYAMA, Managing Director: Yes. Reiko Matsuyama, Office of the Mayor.Iwould, just say,yes, there should be, let us say, a checklist ofentries that need to be booked at the end of the year to make sure that we follow GASB. Correct me ifI am wrong John Paul (JP), but these entries are mainly for revenue accruals. Let us say we have billings through May 31 for the Solid Waste Division or Wastewater Management Division and we have to book the month of June, sO you need to book the receivable, you need to book the revenue in the correct period, and there should be a checklist of these entries that need to be booked as we go through year-end. There was not, sO Malia needed to sort of create this list on her own based on the entries that were booked last year, so it was sort of putting the pieces into the puzzle and there was not necessarily a checklist that we could follow to know that the entries were... Council Chair Rapozo: That is whatI am trying to say. Ms. Matsuyama: When It talk about succession planning, when Italk about being able to function if someone was not there, that was nonexistent. Yes, at lot of these things were in their heads instead ofdown on paper, sO it was us sort of'recreating the wheel," so yes, there was no succession planning for central accounting for that year. Council Chair Rapozo: By the way, I did want to say thank you to Malia and Michelle, and now Chelsie for putting the pieces of this puzzle back together, because I understand it was a mess. This is no way a "dig" on who is there, but it is definitely concerning when the audit says we know there are numerous instances. What is "numerous?" Mr. Bautista: That would be the various findings that all Okay. Are there any other questions on the Yes. Managing Director Matsuyama, Ibelieve contributed to this improved controls that we will go over. Council Chair Rapozo: Councilmember DeCosta: first finding? Iwill ask this question in defense of what Ij just heard. There is no clear baseline or outline for any new employee to come in and resume the role of the employee who had everything in their head, right? Ifthat was the case, then no one would be worth the money they are to be hired, sO: is there a thing in place at each department, such as an outline of job responsibilities and exactly what to do, sO in case that person retires or the County wants to hire someone new, does the County have that outline for each department? Ms. Matsuyama: Some of them do and some of them do not, sO not necessarily. I would say that Malia is creating the standard operating COUNCIL MEETING 39 NOVEMBER 27, 2024 procedures (SOPs) as she is going forward sO that future years will be easier to do, not just for herself, but for any successor. Council Chair Rapozo: Are there any other questions? Okay. Go ahead with the next one. I will try to remain calm today, but I will be honest. Ihave never seen an auditi in all the yearsIhave been here with five (5) material weaknesses and two (2) or three (3) significant issues. Ihave not. Go on. Mr. Ho: If you turn to page 24 of your Single Audit Reports, we have 2023-002, Reconciliation ofInvestment Balances, which is also a material weakness. This is a new finding. Basically, the County's investments were not initially recorded at fair value as of June 30, 2023 as stated in their third party custodian statements. Council Chair Rapozo: Mr. Ho: In layman's terms? They were not: reconciled atyear-end initially Is that like my bank statement at home? Yes, or if you have investments and your Again, I will not have Reiko or anyone else and the amounts did not match the investment statement. Council Chair Rapozo: When I pull out my bank statement and look at my check register, it does not match. Mr. Ho: balance does not align with what you would expect. Council Chair Rapozo: come up to tell us the same thing. The staff left and they did not have the checklist. Thatis the given. Weneed to accept that whether I agree or not, that should not have happened, it did, we are moving on, and again, I cannot say enough of the crew that isin there now. It helps that Malia came from an auditing agency, sO it helps that she knows what we need, but this is quite troubling when I read, During our audit, we noted that the County's investments were not recorded at fair value as of June 30, 2023 as stated in third party custodian statements. Asai result, the following funds' investment balances were misstated: General Fund, Highway Fund, General Excise Tax (GET) Fund, Liquor Fund, Criminal Assets Forfeiture Fund, Solid Waste Disposal Fund, State Grants Fund, Bond Fund, Parks and Playgrounds Capital Improvement Fund, Development Capital..." All the funds. You are telling me that none of them were reconciled. Ms. Matsuyama: In defense, this is just one (1) adjusting entry. Basically, there is the market value...when you look at an investment statement, not ac checking statement or a savings statement, but an investment statement that has the ebbs and flows oft the market, you have the cost value, the market value, the fair value. You have all these columns. Itis basically that we. just have to do one (1) entry to book it to fair value, and that was not done. Again, iti is one (1) checklist that needs to have..basicaly to say, Make sure..." Council Chair Rapozo: Just one (1) investment was not reconciled? COUNCIL MEETING 40 NOVEMBER 27, 2024 Ms. Matsuyama: It hits all the funds, because for the General Fund, we have investments for GET and all the funds. It: is one (1) entry that hits all those funds. Council Chair Rapozo: Ms. Matsuyama: Council Chair Rapozo: One (1) entry in each of these funds? Yes. Yes. It is significant, though, Reiko. I do not want to minimize this and say, "This is just one (1) entry," because it: is not. To me, it is a fundamental function of the Department of Finance, and it was not done. Ms. Matsuyama: Council Chair Rapozo: Yes. Yes, one (1) entry, five (5) entries. The fact of the matter is that the reconciliations were not done, the postings were not made that resulted in misstatements in the County's reporting. That is serious. I think it is. Maybe I am overreacting. Ms. Matsuyama: Council Chair Rapozo: off findings there are in the audit? That is why it is recorded as findings. Yes, as a material weakness, which is the worst finding you can get. Is that correct? Is the material weakness the highest level Mr. Bautista: Council Chair Rapozo: high-risk auditee now? Mr. Bautista: That is correct. Is that part of the reason why the County is a It was a high-risk auditee because there was ar material weakness last year, in 2022. Council Chair Rapozo: Mr. Bautista: Council Chair Rapozo: record? Go ahead. Councilmember Bulosan: Ms. Matsuyama: Councilmember Bulosan: Ms. Matsuyama: We were already a high risk? That is right. And now we are, of course, continuing that Just a follow-up and this is something that our team is working on. Has the County already resolved it ori instated a new process? Yes. Okay. Yes, this will be done in FY 2024. COUNCIL MEETING 41 NOVEMBER 27, 2024 Council Chair Rapozo: Go ahead. Keep it to this finding, 2023-002. Councilmember DeCosta: come over with the County? Ms. Matsuyama: Councilmember DeCosta: Are there any other questions on this finding? Iam, actually. Your position...when did you When didIc come over? Yes. When did you come over to the Department of Finance, because this is what we are talking about, right, the Department of Finance? Ms. Matsuyama: Councilmember DeCosta: 2019, or just up until you came in? Ms. Matsuyama: Councilmember DeCosta: How far back did they go? Ms. Matsuyama: finding, sO it is just for FY 2023. Councilmember DeCosta: weakness all the way back? Ms. Matsuyama: Councilmember DeCosta: Ms. Matsuyama: Councilmember DeCosta: Ms. Matsuyama: Council Chair Rapozo: 2019. 2019. Does this reflect further back, before This audit? The findings that are material weaknesses. This is just for FY 2023. There was no prior So, we could have had this type of material No. Just for this year? Yes. Okay, perfect. Not to blame turnover again, but it is because Right. Again, this is definitely not any oft turnover. We have a new treasurer, and... criticism on your existing staff. I spoke to Malia and Chelsie. What they had to go through to make this work is phenomenal, sO this is not intended for them, but this is a lesson for all departments, including Council Services Division. Actually, I need to say we do a pretty good job here. You need to have these things. You need to have checklists. People need to know what their job is. They need to, SO I hope everyone is listening. Ihope all the department heads are listening. Go ahead. Councilmember Carvalho: statement over here, right? You have the recommendation on this COUNCIL MEETING 42 NOVEMBER 27, 2024 Council Chair Rapozo: Councilmember Carvalho: Council Chair Rapozo: Councilmember Carvalho: Council Chair Rapozo: Councilmember Carvalho: Council Chair Rapozo: Yes, monthly reconciliation. Itisj just the bottom line...I am just asking. Yes. Ijust had to point that out, because... We are a four-hundred-plus-mllion-dollar corporation. Yes. Okay. I do not think that is asking too much to Ifs you turn to page 25, you will see finding reconcile the County's things monthly. Id do not. Next. Mr. Ho: 2023-003, Reconciliation ofInterfund Receivables /Payables, Internal Balances, and Transfers Related to Cash, a new material weakness finding. The County did not reconcile all interfund receivables and payables, internal balances, or transfers related to cash balances between funds for the FY ended June 2023, initially. It was fixed for the final ACFR, just to clarify. Council Chair Rapozo: misstatements in the reporting. Mr. Bautista: And the same result, right? There were Initially, we saw misstatements sO we told them to fix...it was stated to fix interfund transfers between funds that had negative cash to clear negative cash balances. Council Chair Rapozo: Okay. Same rommematon-mentay Page 26, 2023-004, Improve Internal Controls reconciliation. Next. Mr. Ho: Over Accounting for Capital Assets, a new material weakness finding. The County did not capitalize two million dollars ($2,000,000) of expenditures related to a land purchase. The amounts were expensed rather than recorded as part of the capital assets in the Statement of] Net Position. Council Chair Rapozo: Mr. Ho: What happened? The amount was recorded as an expense, but normally for government: reporting at the high level, at the Statement ofNet Position, or page 31, you are going to: move those things out ofexpenses and book it as a capital expense of the County. Mr. Bautista: You would tag it at the end of the year to make sure that it gets recorded as part of capital assets rather than hitting your income statement expense accounts. COUNCIL MEETING 43 NOVEMBER 27, 2024 Council Chair Rapozo: Mr. Bautista: Council Chair Rapozo: al Housing Agency expense. So, the County bought land for two million That is correct. It was sitting in expense. Okay. Here comes Adam, Ia am assuming it is dollars ($2,000,000) and failed to log iti in as an asset? ADAM P. ROVERSI, Housing Director: Aloha, Chair. Yes. Adam Roversi, Director of the Housing Agency. The two million dollars ($2,000,000) in question was a partial payment put into an escrow account for the acquisition ofa 22.5-acre parcel owned by Bill Hay in Kllauea for the Kilauea Affordable Housing Project. I guess the err on our side was how to record the funds in that at least initially, the money was in an escrow account and no land had been purchased sO we did not record it as a capital expenditure, it was, just a program expenditure. We know better now to record the use oft the funds properly even though the purchase had not been closed and taken place, it should have been recorded as an asset. Council Chair Rapozo: How does that work? If the money is in an escrow account, you still book that as a capital asset or do you do that after the land isa actually acquired? Mr. Bautista: Initially, you would record it as almost like "construction in progress,"L because you need to capitalize the entire amount once the land is purchased, otherwise that portion of the land would have just been sitting in expense and expensed out. Council Chair Rapozo: Mr. Roversi: Ig got it. Thank you, Adam. V wanted to provide a little context. Thank you. Council Chair Rapozo: Thank you. MARCELINO SOLIZ, Accountant IV: Could I make a comment, please? Council Chair Rapozo: No, not: now. You can doitafter..who: are, you Iam the accountant for the Housing Agency. Yes, please. I am sorry, I thought you were a To clarify, the reason why we did not book it with? Mr. Soliz Council Chair Rapozo: member of the public. Mr. Soliz: as a capital asset... Council Chair Rapozo: Please state your name. COUNCIL MEETING Mr. Soliz: 44 NOVEMBER 27, 2024 My name is Marcelino Soliz. I am the Accountant IV for the Housing Agency. The reason we did not book it as a capital asset: is because it did not close until three (3) months after the end oft the fiscal year. In our estimation, it would be more prudent to use it as an expense instead of overstating our capital assets at the end of FY 2023. That is why we booked it. It is not that we did not follow protocol. We know the policy, but it had not closed until three (3) months after the end oft the fiscal year. Ifthe deal had fallen apart, we would not have an asset to record. Council Chair Rapozo: Mr. Bautista: The question is, what does GASB require? It would require the purchase of the land at That is the question. What does GASB require? cost, meaning the entire cost of the land that you spent the money on. You would not be able to just capitalize a portion ofit. Council Chair Rapozo: Mr. Bautista: Which is what we did? Yes, the two million dollars ($2,000,000) was moved, because otherwise you would not capitalize the two million dollars ($2,000,000) and it would have just been expensed. Mr. Soliz: Correct and that is what we did. Council Chair Rapozo: One of the wonderful things I love about audits is we learn. I understand you might disagree and think there was a more prudent way,my concern is ifthe County is following the government standards. That is allIcare about--making sure we comply with the government standards. So, what is it? Is it the way you are stating it? Mr. Bautista: Correct, because once the land purchase is Which is more than two million finalized the entire portion of the land will be capitalized. Council Chair Rapozo: dollars ($2,000,000)? Mr. Bautista: Council Chair Rapozo: Right. I see. Thank you. For Reiko, I guess it is Page 27, 2023-005, Landfill Postclosure Costs making sure the County is in alignment with GASB. Okay, next. Mr. Ho: Prior Period Adjustment, new material weakness finding. John mentioned this earlier, but the County obtained a report for Kekaha regarding closure and post-closure estimated costs dated November 2021 in the prior period. The County erroneously accrued thirty (30) years of post-closure costs that included a phase of the landfill that was previously closed, sO that should have been excluded from the final liability balance. As mentioned, this is related to the finding, I think, in the back end ofthe ACFR and it resulted in a restatement of the June 30, 2022 net position on the County's Statement of Net Position. COUNCIL MEETING 45 NOVEMBER 27, 2024 Council Chair Rapozo: Mr. Bautista: How does that happen? The study that the County obtained had costs for the Kekaha Phase IIlandfill, but you are only supposed to accrue thirty (30): years for the open portion of the landfill, but the County accrued thirty (30) years of the closed and open portion of the landfill. Council Chair Rapozo: Mr. Bautista: Council Chair Rapozo: Which means the amount that the County is stating is for a much bigger cost than the County should be? That is correct. Allison, I see you up here. ALLISON FRALEY, Solid Waste Division Chief: Aloha. Allison Fraley, Solid Waste Division. Yes, the report that we were using to identify the anticipated post-closure costs had the Phase I portion of the landfill in that report. Since then, we have a new estimate from a different consultant who only has Phase II in there, and moving forward, we are always going to check in to make sure that it is an accurate, up-to-date estimate of what the post-closure cost would be and it will not include Phase I. Council Chair Rapozo: Mr. Bautista: Council Chair Rapozo: Ms. Fraley: Council Chair Rapozo: Councilmember DeCosta: Council Chair Rapozo: Councilmember DeCosta: That adjustment was made? Yes. Do you see the value of an audit? Yes. Are there any other questions? Ihave a question. Go ahead. With this audit, it seems the County is going to be in more compliance with the Federal guidelines when the County files taxes for the upcoming year, because it seems. like the County has some miscategorization [sic] of different costs allocated to different portions of the landfill, sO now the County is in more compliance sO the County will be in more compliance with the government tax agency when taxes are filed in the upcoming year. Am Icorrect? Because two (2) items you talked about dealt with taxes, right? One (1) was. Adam's two-million-dollar purchase and where it falls. The accountant says there is a different way thatitcould have been done and it boils down to taxes, sO when the County taxes are filed, is the County going to be more in compliance because of this audit? Because you are telling us these financial figures will go on the taxes the County files, correct? COUNCIL MEETING 46 NOVEMBER 27, 2024 Ms. Matsuyama: We do not file taxes as the County, but yes, this will keep us more in line with our creditors and anyone who potentially wants to be an investment holder for the County. This will reflect GASB. Councilmember DeCosta: Ms. Matsuyama: Councilmember DeCosta: Council Chair Rapozo: The County's documents are now in order? Yes. Perfect. Thank you, you answered the Are there any other questions on the Page 28, finding 2023-006, Completeness of question. post-closure? Next. Mr. Ho: TAT Revenues, a repeat significant deficiency finding from the previous year. During the current year, we noted that there was approximately one hundred twenty-four thousand dollars ($124,000) OfTAT: revenue thatv was available tot the County but was not initially recorded in the General Fund. It is reflected in the County's final 2023 ACFR. Council Chair Rapozo: Mr. Ho: This one is a repeat? This is a repeat, correct. Council Chair Rapozo: So, we did not have the exodus of employees in the last one? Alright. Ilove it when you folks just come up, because honestly, there is nothing personal here. Ijust need to get the explanation, because to me, when you get it year after year, we have a systemic problem. It is not a clerical error. No, this is a problem in our system, sO help me understand. NANCEE ROBLES, Treasurer: Yes. Hi,Ia am Nancee Robles. Iam the County Treasurer, and TAT falls under that department. It actually was a turnover issue. We had a finding in 2022 and the one (1) employee who does the TAT--the supervisor-did leave right before we were collecting figures for FY 2023. As a new employee myself taking over that Department.. Council Chair Rapozo: Ms. Robles: God bless you for coming. Thank you, and God willing I will stay. Iwas not aware that there was a previous finding. I was not aware that we needed to include the July and August of the following fiscal year within FY 2023. It is not intuitive to do that. We did not have any written procedures left for us by the previous employee, but we do now. We have written instructions and have already given the report for FY 2024 accurately. Council Chair Rapozo: Is the reason you are taking July and August because of a delay in the State actually dropping the funds into the County versus when you basically earn it? Reiko is shaking her head. Iam trying to understand why the County would. Someone help me. Maybe the accountant. COUNCIL MEETING Mr. Ho: 47 NOVEMBER 27, 2024 It has to do with the GASB reporting requirements. At the General Fund level, you are: required to recognize revenue based upon itl being measurable and available. Ithink "available"i is defined in the ACFR as sixty (60) days after the year end or something like that. Council Chair Rapozo: Mr. Ho: Sixty (60) days? Something like that, yes. Council Chair Rapozo: Okay, I got it. That is all good now? Thank Ifyou turn to page 29, it is finding 2023-007, you. Are there any other questions on the TAT? Next. Mr. Ho: Reconciliation ofLoss Reserve Data Prior to Submission to' Third Party Actuary. This is a new significant deficiency finding. Basically, the County has loss reserve data compiled for their workers compensation reserve. Thati information is submitted toa third party actuary (TPA) and they prepare their own report. The information that was submitted to the actuary did not agree to the actual data that was held by the County's third party insurance administrator and it was actually for a different period, sO that resulted in...if the inputs are not going to match what it should be, then the data coming out from actuary is going to be wrong. Council Chair Rapozo: Mr. Ho: "Rubbish in, rubbish out." In a way,yes. Council Chair Rapozo: Call it what it is, because that is what it is. Again, I guess it all comes down not reconciling, maybe? You need the data, right? You need that report from the third party actuary, right? Mr. Ho: Yes. Council Chair Rapozo: Mr. Ho: How do you get another number? Ib believe part of it was that there was a change in the third party insurance administrator partway through the year, SO that factored into part of it; but the report was just different, sO it should probably be reconciled. Ms. Matsuyama: becoming our new TPA. The new TPA could not recreate the old one: in time. It is fixed now, but at the time they were still going through the transition of Council Chair Rapozo: Ms. Matsuyama: Council Chair Rapozo: What is TPA? Itis the third party actuary. Okay. Next. COUNCIL MEETING Mr. Ho: 48 NOVEMBER 27, 2024 That is all for the current internal control significant deficiencies and material weaknesses. We do have status updates and the Management Advisory Report. Council Chair Rapozo: Mr. Ho: Yes, give us the status updates. Okay. Ibelieve status update is on page 41. Last year, the County had three (3) internal control deficiencies that were listed as either material weakness or significant deficiencies. For the first two (2), one (1) related to the pension account and one (1) relates to accounting for grant reimbursements. Both of those were accomplished. Regarding the last finding thati is related to the TAT revenue accounting that we mentioned earlier, the only repeat significant deficiency finding, hopefully that has been resolved going forward, but was accounted for in the FY 2023 findings, sO not accomplished. Council Chair Rapozo: three (3) were resolved? Mr. Ho: From the prior findings, two (2) of the Prior to us starting the audit, yes. From what I am hearing, the TAT one should That is all for the Single Audit Reports. Are there any more questions on the Single Council Chair Rapozo: be resolved by the next audit. Okay. Is there anything else? Mr. Ho: Council Chair Rapozo: Councilmember Kagawa: Council Chair Rapozo: Councilmember Kagawa: Audit Reports before we get to the Management Advisory Report? Ihave one. Okay. Go ahead. For the TAT one, was it the County of Maui that had a significant amount that did not collect from the TAT?. Are you folks aware of that? At least it is not like we are missing out on revenue that we should have, right? Mr. Bautista: No. Councilmember Kagawa: Mr. Bautista: Iti is just adjustments? Right. Councilmember Kagawa: Ijust want to point that out to the Council. Upon the changeover of the State doing the TAT, they did not transfer all the accounting that they used to provide. That is why it made it a bigger job for the counties to account for it, sO at least the County did not have missing money like the County of Maui did. COUNCIL MEETING 49 NOVEMBER 27, 2024 Council Chair Rapozo: Are there any more questions on the Single The Management Advisory Report, there is Audit Reports? Ifnot, the Management Advisory Report. Mr. Ho: one (1)matter that we wanted to discuss as a recommendation to strengthen internal control. This is 2023-001, Compile Compensated Absences Records Accurately. This is a repeat comment that came up in last year's Management Advisory Report. Basically, during our audit we noted twelve (12) instances where an employee's total vacation or sick leave hours were recorded on individual records that did not agree back to the Departmental Summary Sheet" that sort of summarizes everything, sO the records and supporting documents did not line up with the overall department-level information. Council Chair Rapozo: need someone from the Administration to explain how this happens, because I cannot figure it out. Who handles this portion? Does the County have two (2) sets of numbers? Help me understand where the difference is. The County has a master list of vacation and sick leave hours? I am asking because I do not know. Mr. Bautista: Council Chair Rapozo: Mr. Bautista: During 2023... We are talking about this audit, because this During 2023, each individual department had is another repeat. departmental leave sheets and they implemented Workday in October, sO they were inputting all of this data into Workday. For the audit, we reviewed the entire fiscal year ofhaving them manually track their vacation to when it got into Workday and just checking against leave forms under both systems. When we did that, there were some inconsistencies that we noted similar to the prior year on whether leave forms were missing or there were adjustments that could not be accounted for. Council Chair Rapozo: Mr. Bautista: Council Chair Rapozo: Mr. Bautista: Council Chair Rapozo: discrepancies between? Mr. Bautista: This finding came up in the last audit and Workday was not: involved, right? It was just manual. Yes. We had discrepancies last year? Yes. Help me to understand. What are these For example, an employee would have vacation taken eight (8) hours, but when we look for the leave form, it was not available or just not properly supported. COUNCIL MEETING 50 NOVEMBER 27, 2024 Council Chair Rapozo: an employee's individual record? But this one says, ...the hours recorded on the individual records. did not agree to the Departmental Summary Sheet'." Whatis Mr. Bautista: That would be when they are requesting vacation hours off. For the full year, let us say an employee takes forty (40) hours of vacation, and each individual leave form, maybe we could find thirty-two (32) hours, sO eight (8) hours are missing. Council Chair Rapozo: Mr. Bautista: Council Chair Rapozo: When we look at the number of hours of vacation and sick leave in the department's: system, we should be the right one, right? That is correct. Iam assuming if everything is working, I submit my vacation request, it gets approved by my supervisor, it goes to wherever it goes across the street, and someone keeps track of all of this. You are saying that when you look at the County's sheet and you look for all my leave papers, they are not matching. Is that what you are saying? Mr. Bautista: Council Chair Rapozo: Mr. Bautista: Council Chair Rapozo: Mr. Bautista: Council Chair Rapozo: Mr. Bautista: Council Chair Rapozo: Mr. Bautista: Council Chair Rapozo: Mr. Bautista: Council Chair Rapozo: Mr. Bautista: Council Chair Rapozo: In some instances in our sample, correct. In other instances, what? It does match. It does match? Yes. Ifiti matches, it is fine. Itis not a finding. Sure. You said there are twelve (12) instances where the County's records and the employee's records did not: match. Correct, in our sample. How many did you check? We sampled forty (40) employees. How many? Forty (40) employees. Forty (40) employees and twelve (12) were misstated? COUNCIL MEETING Mr. Bautista: Council Chair Rapozo: 51 NOVEMBER 27, 2024 That is correct. That is not good. When I am looking at the County's record, is it more than what this employee should have? In other words, is the County allowing people to take vacation and not docking their hours? If there is no record...he is saying, "But you still have the timesheet," but ifmy timesheet shows vacation, then there better be a vacation request on that timesheet. Mr. Bautista: Council Chair Rapozo: Mr. Bautista: That is correct. Ifitis missing, then how are they charged for We are not sure ifthe form existed during the the vacation? time that the employee requested the time off, but was misplaced. We are not sure who was supposed to keep track oft the records. Council Chair Rapozo: Okay, help me. ANNETTE L. ANDERSON, Director of Human Resources: Iam not sure ifIcan help you. Annette. Anderson, Department ofHuman Resources. As you pointed out, we have Workday now, and in the past, there were papers thatyou would submit, right? The employee would turn in the paper to the department and the department would turn it over to payroll. That does not happen anymore unless some departments are still keeping papers. It is all electronic through Workday, sO the records should all be in Workday when I request my absence, vacation or sick leave, when I do my timesheet, when I go into the system and request leave, sO I am not familiar with what they are finding. Are you referring to actual paper forms that some departments are keeping? Is that what you are looking at? paper and half( (1/2) a year of Workday. Workday is short... you saying some departments continued with paper? Mr. Bautista: Ms. Anderson: Mr. Bautista: Ms. Anderson: Yes. In 2023, it was almost half( (1/2) a year of Weimplemented Workday in January, sO are These instances were during that time of the My understanding of paper is that when we paper. went to Workday, there were plenty of departments that did away with paper. There was no need anymore, we have a fully electronic system. I think there were some departments, for instance, with respect to overtime, they wanted to still keep it as paper overtime requests for their own internal purposes. Council Chair Rapozo: Mr. Anderson: We are only talking about vacation and sick leave. Yes, I am just saying. COUNCIL MEETING 52 NOVEMBER 27, 2024 Council Chair Rapozo: Mr. Ho: What departments did you folks check? We checked the Office of the Mayor, HR, the From all those departments, you said you had A total of forty (40) employees tested, and of Again, I want to know if anyone gained Transportation Agency, the Office of the County. Attorney, and the Housing Agency. Council Chair Rapozo: forty (40) actual... Mr. Ho: that forty (40), there were twelve (12) people with discrepancies. Council Chair Rapozo: vacation or sick leave hours because oft this problem? Because that is a problem. Are you able to tell? Mr. Bautista: Council Chair Rapozo: We can compile and provide thatinformation. IfIa am an employee and I put in a request for vacation and my supervisor tells me, "You do not have enough vacation hours," or "You only have this much," and II keep my own records, I would be pissed off and I would be making noise. The investigator brain in me tells me that the employees must be getting more vacation hours because we have not deducted what they have taken, and that is what I am hearing, right? You have the County's list, but you do not have Mel Rapozo's vacation request, SO if this had been logged in the County's system, then it would be the same and it would balance. Councilmember Kualii: Council Chair Rapozo: Councilmember Kualii: Can I follow up? Yes. When you do the check, what you are saying is the request form was missing, but you also checked the timesheet, right? The timesheet has to show regular hours worked versus the leave amounts, and if you find a discrepancy there, only then could the pay actually be affected, butifthe record on the timesheet lines up with amount of] leave versus amount of work, that is what people are being paid on. What is missing though is that other sheet where someone 1s requesting for time off. Process-wise, you should not be deducting from their leave balancesj just based on a request. It should be based on what they were actually paid, so for the forty (40) people you tested, you looked at the timesheets as well, right, and what they were actually paid? Mr. Bautista: For those forty (40) people, we do sample two (2) pay periods. We do not look at all their timesheets throughout twelve (12) months ofthe year, SO it does not necessarily coincide. Councilmember Kualii: But for the problem of twelve (12) instances, was it just the matter of them not submitting their request sheet or was it also a problem on the timesheet with how they were paid? COUNCIL MEETING 53 NOVEMBER 27, 2024 Mr. Bautista: period that we did not sample. Councilmember Kualii: Someone might have taken a leave for a pay With what you looked at, of the twelve (12) that had a problem of there being no sheet requesting the time off, you only knew that they did take off, because it was on the timesheet, right? Mr. Bautista: There was a deduction on the accrual leave From the other summary report that they do? No, we did not compare that to the form. Councilmember Kualii: Did you compare that to the timesheet? Mr. Bautista: timesheets. Councilmember Kualii: Mr. Bautista: Councilmember Kualii: Just the leave request. The leave forms, correct. Because I would imagine there could be times when an employee forgets to actually submit the request form but did get a verbal approval from their supervisor and they did putit on their timesheet, and that is how they are being paid, right? They are: not being paid on whether..they. probably should not. You should probably say, "No approval form signed off of, then no use and no pay," but the timesheet should show I worked thirty (30) hours this week and I took ten (10) hours of vacation, but you did not look at that? Mr. Bautista: timesheets. is looked at. No, we did not trace that all the way to the Ithink your concern can be addressed if that Again, the concern is that we are a Councilmember Kualii: Council Chair Rapozo: four-hundred-million-dollar corporation, these things are not supposed to happen. There is no verbal "yes." If it is verbal, you follow it up with a form or through Workday. Last year, we were told we would never see this again because the County is doing Workday, butiti is here again. For next year's audit, are you folks starting to look at the documents for next year. Mr. Bautista: Council Chair Rapozo: Mr. Bautista: Council Chair Rapozo: Yes, we are: in the process oft testing right now. Are we looking at this again? Yes. Any idea ift this has been fixed? COUNCIL MEETING Mr. Bautista: 54 NOVEMBER 27, 2024 We have not finished the testing yet, but we Iwould ask that you folks extend the check to are testing the exact same process. Council Chair Rapozo: the timesheet, as Councilmember Kualii said. It should not be hard because we have Workday now. Everything is in Workday. We do have an audit right now that was approved and we can expand the scope of that audit to actually look at that, because I am concerned about that. Councilmember Kagawa. Councilmember Kagawa: I want to clarify. Now that the County is on Workday, we do not have two (2) separate records for employees, right, because when the County set everyone up on Workday, that is when the County reconciled everyone's accurate information, made sure employee and employer agreed, and we started from scratch from then, right? There are not two (2) lists going on. Ms. Anderson: That is my understanding. The only thing I am aware of for paper is some departments still have overtime requests via paper. I am not familiar with absence requests being paper and then on Workday. Thatisjust foreign to me. Councilmember Kagawa: For the few departments you are talking about that are on paper, those would be the only ones that JP folks would find any discrepancies, because everyone else is on Workday, right? Ms. Anderson: Mr. Bautista: Yes. In mean, you would have to tell me. Everyone should be on Workday by this point, There are not two (2) different sets on so all their leave forms should be within the system to show what days they took off. Councilmember Kagawa: Council Chair Rapozo: Ms. Anderson: Council Chair Rapozo: are some departments that do paper? Ms. Anderson: Workday, SO it should be okay now ifyou folks test, right? Is not everyone on Workday? Yes. So, I do not understand. Are you saying there Again, on overtime is whatIam familiar with, and we were encouraging them to do away with paper. It was duplication, there is no need. department? Council Chair Rapozo: Ms. Anderson: The papers, do they just hold it in their Ibelieve sO, yes. Not to name names, but one of the larger departments that has a lot of overtime was one that wanted to keep it for a period of time when we transitioned to Workday. COUNCIL MEETING 55 NOVEMBER 27, 2024 Council Chair Rapozo: compare it to the timesheet? Ms. Anderson: Council Chair Rapozo: Rightnow, ifyou are doing an audit last fiscal year...Workday has a mechanism for finding the vacation requests granted. Does it Sure. Ido not know how you folks are going to be looking at paper when we do not have paper. Is Workday capable of producing an audit: in itself? The problem is ifan employee gets verbal approval to take offand does not do the...there is no way to audit that. You know what I am saying? That is why I think the paper is good, at least the request sheet. Everyone should be a request sheet. You are nodding, but help me. You are the Auditor. Mr. Bautista: You should be approved for your vacation That is my point, because if you do not have prior to you taking the vacation and with the authorized sign off of your manager. this paper, then my employee and I can have a field day, "Councilmember Kualii, just take off," right, but that is what I mean. I understand Workday is a great tool, but as far as the requests, are you able to apply for your vacation on Workday and Council Chair Rapozo: your supervisor signs it? Ms. Anderson: As an example, this morning, my subordinate asked to take sick leave for two (2) hours this afternoon. That request came to me, not in paper form. It comes to me via email via Workday, and I approved it, sO now that person knows they have been approved to take this afternoon. Council Chair Rapozo: Ms. Anderson: Does Workday have the capacity or capability Yes. As another example, we are just getting to generate a report to show all of the requests and all of the time taken off? ready to send out a reminder to all employees to look at your vacation balances as we get to the end of the year because there is a certain maximum (max) where ifyou are over that max, you are going to lose it, sO we are giving instructions again this year like we did last year saying, "Please check Workday to see what your balances are sO ifyou are going to exceed, you still have time this year to take it off," sO yes, we have the ability. Every employee can go in and see what their balance is. Every manager can do it, too. Council Chair Rapozo: Like I said earlier, the employee will not complain if they have more hours than they deserve. No one will say, "Boss, Ihave too many hours. Can you take it back?" That is my concern. How can we check to make sure that everyone who took off...and the only way you can check it is by comparing the forms to what is in Workday?. I do not know any other way. Mr. Bautista: taking a sick leave. Yes, in Workday, like Annette mentioned, I would be able to see that approval for the two (2) hours ifIlooked at that employees summary for the entire year and I would see her approval prior to that employee COUNCIL MEETING 56 NOVEMBER 27, 2024 Council Chair Rapozo: Right, but you are not able to determine outside of Workday...in other words, ifit was not logged in to Workday, you would not be able to tell. Mr. Bautista: Council Chair Rapozo: No. Thati is why Ia am saying the paper would work and it is very simple. The Administration just needs to come out with a directive that says all vacation and sick leave requests needs to be held. I do not understand why that is sO difficult. Ms. Matsuyama: Iagree that this is a problem. I do not think that having paper forms will solve that problem. Ithink the problem is just aj process level. Of the five (5) departments that they audited, only two (2) departments were...so I think we can isolate the problems down to those individual those departments and I think now that we have centralized everything in HR Payroll, which was not necessarily done in FY 2023, they can control their own destiny, basically, with their own SOPs and everyone is consistent from department to department. That was not happening in FY 2023, sO the departments that the findings were in were doing separate processes, separate procedures, and I would just comment that, you can correct me ifI am wrong, JP, but the twelve (12) instances or inaccuracies that they found were not always the same way. It was not always the same direction, like this one is higher than this one. Do you know what I mean? I think your concern is real. We might be giving someone more vacation than earned or have... Council Chair Rapozo: from the employees. Ms. Matsuyama: Conversely, the County might be stealing ...and backwards, but it is not a per basis problem in the same direction. It is different, sO we need to make sure that our "t's are crossed and our i's are dotted."It think having central payroll do everything will help the process, but we still do have a problem, soI am acknowledging that. Council Chair Rapozo: their own thing? Ms. Matsuyama: prior to Workday. Council Chair Rapozo: Why would departments be allowed to do That is how it was done. It was decentralized When the County went to Workday, it now became a mandate, right? You do not have an option to go into Workday. Everyone goes in there. Ms. Matsuyama: Everyone went to Workday, but some people were still processing their things individually, like how Annette said some departments are still keeping for their own purposes. Council Chair Rapozo: And that is fine. COUNCIL MEETING Ms. Matsuyama: already doingit. Council Chair Rapozo: Ms. Matsuyama: Council Chair Rapozo: 57 NOVEMBER 27, 2024 It is sort of duplicative, right, because HR is But HR is not keeping paper records, right? Everything is in Workday. Like Annette said, For me with the way I operate, ifI had a all the approvals are: in Workday and the Auditors can trace all the approvals. division or a department, I would want to make sure that everyone is...because you cannot watch everyone, you know? You cannot. That is why I think the paper is critical, but that is just my opinion. Ifthey have that option that is fine, but there has got to be a way to...Ijust do not want to see this come up again next year. I do not, but IJ have a feeling we will. I really do, and then what? Councilmember Kualii: Procedurally, ultimately, the supervisor is responsible for the time, attendance, and work of the employee, right? The employee submits the request for the time off, the supervisor approves it, the supervisor knows thatis coming up, then when that period passes, the employee submits the timesheet to the supervisor and the supervisor approves it, sO the supervisor is in the two (2) steps of the approval? Ms. Matsuyama: Councilmember Kualii: Yes. So, when the supervisor is approving the timesheet, ifthe supervisor is approving on that timesheet that there by leave use- sick leave or vacation--and they know they did not get the request, then the supervisor needs to take care ofit, procedurally, sO that the auditor will then have it. approved already, sO you cannot say you worked on a certain day. It will flag you to say that you said you worked this day, but you have a vacation approved, sO it will not letyou proceed without fixing the error. Iv would say as a third check, HR Payroll does check everyone's timesheet. They see that you requested vacation on November 26, but you said you worked on November 26. Which is true? Yes, the supervisor is in charge of approving the vacation and the leave, the supervisor is also required to approve the timesheet, and all of thati is documented in Workday. Ms. Matsuyama: In Workday, you can see if vacation was Councilmember Kualii: timesheet, not the leave request? Ms. Matsuyama: Councilmember Kualii: Council Chair Rapozo: Councilmember Kagawa. Councilmember Kagawa: Ultimately, the pay is done according to the Yes. Okay. Are there any other questions? Go ahead, JP, going back I remember this particular testing was causing the County problems from way back, right? Even when COUNCIL MEETING 58 NOVEMBER 27, 2024 Councilmember Carvalho was the mayor. Itl has been on from 2012. With the process being switched to Workday, itis obvious that things are much better, because the less thatthe County took out oft the paperwork is what was causing a lot ofthe paperwork, right, when you folks were testing from way back? We have never done well with these tests. I do not recall. Mr. Bautista: That is correct, because it took away the human mechanism ofhuman error in losing the form or misplacing the form, or when a personnel transfers department, they might misplace their form. At leasti ifitisin the Workday software environment, it will always be in there to support that particular leave taken. Councilmember Kagawa: Ican picture the Baseyard employee having piles of paper and it just sO happens that the one you folks pull is the one that is missing, and it cries fraud, but a lot of times it is just human error. We try to take out the human in that error with Workday, right? Thank you. Council Chair Rapozo: Councilmember Carvalho: Go ahead. Ih have a comment. I totally understand the paperwork part from years back, but the direction of the Administration is to go one hundred percent (100%) with this Workday process and then that is it, right? There is no more paper. Is that what it is? That way, that is the direction. That is what I am hearing. We can go back and forth, but with this new process in place, it should be held accountable from every single person within that department or the leaders, HR. I understand the paperwork side, but that is the direction you folks...I am hearing, sO Ijust wanted to clarify that. I totally understand the process. Ms. Matsuyama: We need to understand the problem within Workday and make sure that we have generated the reports necessary to do the reconciliation at every step oft the process. Councilmember Carvalho: Ms. Matsuyama: Council Chair Rapozo: Through the Workday process? Through Workday, yes. That is what we were told when the County bought that thing. We were promised that all this would go away, butit has not, sO it is frustrating. Are there any other questions for the Auditors before we open it up for public testimony? Seeing none, thank you. Are there any questions for the Administration before we open up for public testimony? Go ahead. Councilmember Bulosan: This is follow-up for the Managing Director. I know it is really important for us for all these findings, andIearlier asked how many ofthese you are working on, so Ijust wanted to get clarification on all these findings. You folks are working on it and the majority of it are resolved or are some of them are resolved already? Ms. Matsuyama: All of them are resolved. I would say the caveat is this vacation one. We still need to figure what needs to happen in Workday. COUNCIL MEETING 59 NOVEMBER 27, 2024 All of the other findings...I think there were twelve (12) in total, SO eleven (11) of them have been fixed and resolved. Councilmember Bulosan: Council Chair Rapozo: Mr. Bautista: Council Chair Rapozo: Thank you. Are there any more questions? If not, thank you. Thank you very much. Is there anyone is the audience wishing to testify? DEREK S.K. KAWAKAMI, Mayor: Can I? Council Chair Rapozo: Mayor Kawakami: Ofcourse. Thank you. Council Chair, Councimembers. To our Auditors, I want to thank you. I come and sit in front ofy you telling you folks that these repeat findings are disappointing. Ip personally take full accountability and responsibility for our shortcomings. We will do everything that we can to support the departments to address our shortcomings. I think we need to take a look at consistency as far as how vacation is being recorded. We are still working on consistency with Workday, but I just wanted to come in front to this Council to say that we take these findings seriously and we will do everything we can to take corrective action. Thank you. Council Chair Rapozo: BRUCE HART: Thank you, Mayor. Mr. Hart. For the record, Bruce Hart. This is why audits areimportant. As we. have discussed audits in other areas, other departments in past, an audit identifies problems and then we can work through those problems, we can take corrective action, and we will not have the problem anymore. I would like to thank Council Chair Rapozo for presenting the audit and I certainly am heartened by the Mayor's testimony. I think we just have to do what is necessary to bring everything into compliance. I would also like to say as a citizen that again, at times it is disappointing to me that other members of our community do not participate, but I am happy to be here and participate as a citizen. This is what the legislative body does. This is what the Administrative body does. Some people worry when it comes to tax time. Itis not abnormal or out oft the ordinary to make mistakes, but the mistakes have to be corrected. Thank you. Council Chair Rapozo: LACEYLOVE: ac copy of this audit, please? Council Chair Rapozo: Thank you, Bruce. Is there anyone else? Aloha, my name: is Lacey Love. WhenIcan get You can get it from our front office. COUNCIL MEETING Ms. Love: 60 NOVEMBER 27, 2024 Awesome, thank you very much. I am not used to needing a microphone (mic). This is unacceptable. This a "rules for me and not for thee."Iam not an attorney, but I counted five (5) different crimes committed today, including fraud. It is fraud. IfI did that, I would be incarcerated and investigated by the Internal Revenue Service (IRS), sO my question to you folks is...I know Mayor Kawakami just took accountability. How is accountable for these mistakes and what: is the recourse, because as a constituent, these are: my tax dollars that are paying for employees who are not even being honest about when they are showing up to work?Ihave a teenager who has to put in a request ifl he would like to take off work or not go to school. A teenager. We adults need to do better. You folks have heard me use the term "weaponized incompetence." At this point, it is malfeasance. 2019, and Ia am not blaming any of you folks because I know you folks are paper people, you are doing the audit, but I am also here andI am also involved, and ifs you cannot even get the County employees to show up, that is a problem.Iam hoping in this report I see all of the agencies that were audited, because I do know there are a few of them that I see around all the time. They are not in their office, they are not doing their job, and it is affecting me personally and directly and all of your constituents across the board. It is an economic warfare and this is part of the problem. I am here, I am not an economic expert, Iam not an analyst, I am not an auditor, but I am a concerned citizen andI am totally down to bring all of the people who know what they are talking about to the table to try to resolve this because iti is unacceptable. Like you said, this is a forty-million-dolar corporation. Let us treat it as such. Every dime should be accounted for and it should go to the people. Thank you. Council Chair Rapozo: is there any further discussion? Thank you. Is there anyone else? Seeing none, There being no further testimony, the meeting was called back to order, and proceeded as follows: Council Chair Rapozo: Councilmember DeCosta: No one has anything to say about this audit? want to go back to the Department of You have got to be kidding me. Go ahead, Councilmember DeCosta. Finance that lost two (2) people to the Department of Water and I guess they took three (3) other employees. I think the County lost five (5) people out of eight (8). In defense ofc our County, right now continuity and the retention of qualified employees is what I see the problem is. What if those employees were worth keeping, paying higher wages, which I do not think the County can, but they left with a wealth of knowledge. I think if we were blaming our current Administration team for having them leaving without leaving behind their knowledge. It think we cannot do that. Yes, Iagree there are ways we can have them write down their job responsibilities, but that is why corporations across the world pay big money for corporate people to do these important tasks. Ifit was that easy to jot down an outline of what a person's COUNCIL MEETING 61 NOVEMBER 27, 2024 responsibilities would be, then we would not have the big money to have that person work for us. Yes, when employees leave, they leave with a wealth of knowledge and they leave with their brains. That is why we are happy to have and keep our current employees, sO what can the County do to help with retention? Yes, the County lost five (5) out of the eight (8), and I am hoping the Managing Director and others have something in place where you folks have hired some competent people andIam pretty sure you have. Iam a little worried about the absences from work and the different twelve (12) versus forty (40) that were tested. We have a similar Workday program at the State District Office. I think it is called "Smart Express." There are formulas inside of that, right? You have your amount, simple addition and subtraction. You have your one hundred (100) days of vacation and sick leave that are in two (2) different categories--sick leave and vacation-you mark the box that you want to take, it automaticaly subtracts it from that box, and gives you the next total. Your administrator can sign it. There is also a paper that we use, so Iam confident that you folks are fixing the problem. Thank you, folks, for your time. Council Chair Rapozo: Councilmember Bulosan: Is there anyone else? Councilmember Thank you to our Auditors to showing up Bulosan. today to be present and do this in person. It is always better in person than online. Thank you, Council Chair, for your comments and our Councilmembers for the thought processes. These audits are never comfortable because the design is to open and see what can be improved on, if improvement is needed, and as always, it is vulnerable for...as a process, as a person, when you get audited in general. As a kid, you do: not like when parents check in your room to make sure you do your homework and whatnot, but it is necessary. It is a process in every level of our lives from personal practices to our work practices. I really appreciate that our government takes this seriously. When we initially got the report, it was definitely alarming to hear that there were sO many findings. As I went through the report, there are instances that we feel like there could be great improvement, but after hearing the discussion, talking to department heads, and hearing the updates from the Managing Director, Iam definitely confidentin the County's team to: reconcile the rest that need to be and it is great to hear that majority is already being addressed. It is a very important thing to be reminded that these audits are necessary at every level and I hope that we continue to utilize this same way of addressing these in the future as I imagine that we will, and Ilook forward to the County resolving that final issue. Council Chair Rapozo: Councilmember Kagawa: Councilmember Kagawa. Thank you, Council Chair. I was just doing some reading and Isaw the Department of Defense, seventh annual audit completed and they have seven (7) disclaimers of opinion, which means they express no opinion on the financial statement. This is the largest budget in the United States government. Certainly, we are not even close to that sort ofarea and I think they are COUNCIL MEETING 62 NOVEMBER 27, 2024 doing their best with what they have. Iti is not easy. We have the largest budget now, it is growing, and there were a lot of transitions, sO Ican understand how and why things happen, but going forward, at least with the Workday side and with everyone else acknowledging and addressing the findings that were found, we are in a good spot going forward. Thank you. Council Chair Rapozo: Councilmember Carvalho: Councilmember Carvalho. Ijust wanted to say mahalo, Council Chair, for bringing the audit to the table. The audit is about accountability, trying to hold everyone in place, and the Administration following through and giving us whatever information we. need.Ihave gone through numerous audits, but again, it really brings itt to the table. At least we can talk about it, but please put action on it and make it move. That is whole purpose. It: is good that we can question and follow. That is what the process is, but at the end of the day, making sure that the result of the audit comes to life and takes it to the next level. That is for me to assure that the accountability is there financially for us. Thank you. Council Chair Rapozo: Councilmember Kualii: Councilmember Kualii. I,t too, want to say mahalo nui loa and give gratitude to everyone in the Administration for the work that you do day in and day out. The audit happens every year and I think it is primarily a tool for us to know how we can improve andIa appreciate that you are willing to learn, grow, and improve. As far as putting procedures in place, it has all been said- putting procedures in place, internal controls, succession planning, checklists, SOPs. Iam hopeful that in the audits to come next year and the year after it is going to get better because we are all learning. I would just call out to all ofour supervisors throughout the County. Your most important job is to make sure the workers get the job done efficiently and safely, but also to ensure that they are being paid appropriately, sO take it upon yourself to make sure that the timesheets line up with the leave requests, that they are being paid appropriately and that no one is given more leave or less leave than they are entitled to. Ifyou have to create your own little spreadsheet for the ten (10) employees you are responsible for, do that on the side, but use Workday and make sure it is all happening the way that it should be. The tools are there, sO take the initiative and make that one of your number one responsibilities. Ensure that all the County employees are being paid accurately, fairly, and appropriately. Thank you. thank you, Mayor, for being here. Idid not even see you in here and la appreciate you being here. As I said earlier, to the Finance team that is working so hard to unravel and put these pieces of the puzzle back together, mahalo. While my comments may be harsh, in my opinion, it is necessary Decause..everyone thanked me for this, but this is not my audit. This is an audit that is required by the Charter. It: is not Mel's audit. This is that the Charter mandates the County Council do this audit every Council Chair Rapozo: Is there anyone else? If not, let me first say COUNCIL MEETING 63 NOVEMBER 27, 2024 single year, sO I can take no credit for this, but audits are tools. We are a huge corporation. Yes, the government is still a corporation. Should our standards be any lowert than those ofa private corporation? Absolutely not. The only difference between the County and Walmart or the County and any of these banks or big organizations is that the County uses taxpayers' money. We are not investing. We are not making off of private people's money. This is our public tax money. What I saw today is not just "We made an error and failed to post this or failed to post that." Those are, just the symptoms of a problem that is serious. It is a systemic problem. It is a systemic issue. The fact that the County does not even have a binder with a checklist for any employee should someone not come to work tomorrow..when you look at finance...that is why I am not an accountant. I do not like numbers, Ihate math. I worked as a night auditor for thirteen (13) years in two (2) hotels on this island and from the day I startedIwas) handed a binder about this fat with processes and policies for just a night audit, which is "peanuts" compared to this audit. We reconciled the daily events at a hotel and the food and beverage outlets, and the binder is this fat. In the absence of the auditor, anyone can walk in. As long as they can read, they can do the job. It is incredible how detailed those things are. Now, we are the County of Kauai, we are a huge operation and honestly, I cannot accept, "We had a turnover in employees." Fine, that will happen, but the County was not prepared for that. It is the same response for all of these things. The HR one is separate and we will do with that, but as far as the audit, it is honestly not a valid excuse to say people quit or transferred. The job needs to continue. While misstatements in your financial reporting may seem minimal, the reason iti is a material weakness is because iti is not minimal. Iti is the worst rating you can getin a financial audit. Do you think that does not matter when the County goes out to see if they can borrow money, float bonds, or get financing? Do you think they will not look at the County's audit and see that the County is a high-risk auditee? This is the second year that the County is a high-risk auditee. We cannot have these repeat findings. They are telling us what the County needs to do to fix it and it needs to be fixed. The whole thing with HR and Workday, again, I think my ask of the Administration is to really focus on developing these processes and procedures that stays beyond any one ofour times here at this County SO the next person up will continue the work without having to make things up.I do not know how...Ican only imagine how your new finance team--Malia, Michelle, and Chelsie...I know what it is like when the reconciliation does not balance and when you look where it is supposed to be, iti is not there. Iknow what it is like. It tell Malia, "Please do not quit. Do not quit because of the frustration," but we, as the County, need to provide them with the resources and the audit is one of those tools. Again, I donotl like tol be harsh, butitis not acceptable. Honestly, iti is not. Not: in a corporation of this size. The County should have the resources in place especially, as Councilmember Kagawa says, "We raised the most money ever, we generate more revenues now." Just look ati the audit, look at the increases: in the TAT and GET. With just the increase in revenues, the County needs tol be able toj put out a better product. That is allIhave. Jade, like I said, I do want to expand that scope of the audit with HR, unless there are: any objections. Iam not sure ifv we can ask the auditors in their current audit to expand that. Councilmember Kualii brings up a really good point COUNCIL MEETING 64 NOVEMBER 27, 2024 that regardless ofwhat the paper says, you need to match it up with the timesheets. In Workday, it should automatically balance because when you input the vacation it already logs you as not working, sO it should be okay, but we will see. The motion to receive C 2024-244 for the record was then put, and carried by av vote of 6:0:1 (Councilmember Cowden was excused). Council Chair Rapozo: this meeting is adjourned. ADJOURNMENT. The motion is carried. Thank you. With that, There being no further business, the Council Meeting adjourned at 11:37 a.m. Respectfully submitted, A JADE KJOUNTAIN-TANIGAWA County Clerk dmc:ss