[0:05] >> Good morning everyone. And

[0:08] welcome to our Council Meeting. Today

[0:11] is January 7th, Happy New Year to

[0:13] everyone. And wishing everyone a

[0:16] wonderful year. Before we get into the

[0:18] agenda, we do have a certificate

[0:22] presentation, and also, I just want to

[0:23] make a real quick announcement, Mr.

[0:28] Carvalho has family medical situation

[0:29] going on and he may be stepping out

[0:31] during the meeting. And we offer our

[0:35] prayers to the family, and so just so

[0:39] if he walked out it's not because he

[0:41] doesn't like you all, but he has some

[0:43] personal issues to deal with. With

[0:45] that, if I could have tracon Kaneshige

[0:52] and Bart. Coming on up, man. For those that don't know

[1:00] tricon, he is an artiest and I get it's

[1:05] called a muralist. We just used to call

[1:09] it graffiti guys that go around

[1:12] and spray point everyone, but tracon has

[1:14] managed to perfect this Art and for

[1:16] those that don't know, he just did an

[1:19] amazing mural at the Kaua'i's veteran's

[1:22] center that will be unveiled all we'll

[1:25] talk about that in a little bit. I

[1:27] will go ahead and read the certificate

[1:28] and have some discussion on what is

[1:30] coming up next. The Council of the

[1:34] County of Kaua'i presents this

[1:38] certificate to tracon Kaneshige muralist for

[1:40] his work at the Kaua'i's veteran as

[1:42] Museum and the Council of the County of

[1:46] Kaua'i recognizes Mr. Kan shige for

[1:49] his amazing dedication and

[1:51] Artistion vision for contributing to the

[1:53] community with a remarkable set of murals that

[1:55] are now a perpetrate nent

[1:57] [TP-EUPT/]ture the Kaua'i's veterans Museum.

[1:58] We'll be able to show some pictures

[2:01] later, yeah? And, in fact, if you want to

[2:04] go ahead and put themum. Tracon has

[2:09] created three magnet murals spaning

[2:11] more than 80' of the Kaua'i veterans

[2:13] Museum walls, which have transformed

[2:15] the space into a living tribute to the

[2:18] courage and sacrifice of America's

[2:20] service men and women. These murals

[2:23] vividly depict the military con ticket ins our

[2:25] nation has endured including World War

[2:27] I, World War II, Korea, Vietnam,

[2:32] desert storm, Iraq and Afghanistan,

[2:36] capturing the hardship and enduring

[2:37] spirit of those who served. Through

[2:41] Frieson's compassion, vision and Artistic

[2:45] mastery, he has given life to images

[2:46] that will be remembered and spoken of

[2:48] throughout the Kaua'i community for

[2:51] generations to come. Tricon's murals

[2:54] stand not only as works of Art, but

[2:57] enduring symbols of remembrance,

[3:00] respect and Aloha for all who have

[3:02] served in the military branch of the

[3:03] United States. The Kaua'i County

[3:06] Council on behalf the Kaua'i veteran's

[3:08] Museum and cure community acknowledges

[3:11] tricon Kaneshige for the work that will

[3:13] forever enrich the legacy of our island

[3:15] and our nation. Thank you. And

[3:16] appreciate you, man. [ APPLAUSE ]

[3:34] Whenever we turn this stuff on, our

[3:36] mics go off. So you just have to press

[3:38] it. Trison, I guess to start, maybe

[3:40] just introduce yourself, and how did

[3:44] you get started with muraling? >> I started in High School,

[3:48] where I painted a two story mural, at

[3:52] Kaua'i High School. And I had

[3:56] multiple concussions from soccer, and I

[3:58] couldn't paint, but painting became my

[4:00] therapy to heal. So this is why I

[4:02] started getting into mural Art, which

[4:06] is a larger- it's more fun, more

[4:09] freeing and easy on the body. This is

[4:11] my way to heal and to help Kaua'i as

[4:14] far as the community Art scene. I

[4:17] want to do more like place space and

[4:21] healing murals around Kaua'i,

[4:25] hopefully, to help . I had a lot of head

[4:28] injuries, that is why I paint.

[4:31] >> So what -- what moved you to do one

[4:38] as a dedication, or a tribute to our

[4:41] veterans? How did that come about?

[4:46] press the thing again. Sorry. what's going on?

[4:54] >> So my grandpa is in the Korean War

[5:00] and he live down the road from me and

[5:03] saw me painting and how I was introduced to Bart and I wanted

[5:06] to give back to the community, Kaua'i,

[5:08] as far as the veterans and everyone,

[5:11] because this isn't just about me. It's

[5:13] more about the community as well,

[5:15] from my heart. That is the reason why

[5:17] I really believe in Art being a way to

[5:20] heal for our community as well. So that

[5:22] is my passion, and that is why I want

[5:26] to do long-term for the island.

[5:29] >> Nice. Thank you. Thank you. I

[5:32] saw the pictures, and is it showing?

[5:34] >> Yes. >> It's not -- that is not the

[5:36] picture. [Laughter ] my hair is white

[5:47] yeah? So Bart, I know you are a big part

[5:52] of the Kaua'i's veterans Museum, and

[5:54] interestingly enough, a lot of people

[5:55] know that the vet center sitses where

[5:58] it sits, but there's a lot of people

[6:00] that don't know there's a fully functioning Museum in there and

[6:05] if you could introduce yourself.

[6:08] >> My name is Bart Thomas, I'm a

[6:11] veteran as well and a Director of the

[6:13] Museum. In the last I would say four

[6:15] years we have completely renovated the

[6:17] museum. The neat thing about the

[6:20] Museum, it's unique, to the islands,

[6:22] it's 80% is donate by families on this

[6:24] island, which makes it very unique.

[6:27] And so there's history, and not just

[6:30] history, but military history from

[6:33] Kaua'i, which is a great thing. For

[6:35] me, I have always loved this thing,

[6:37] because we blew out the wall, ceilings

[6:39] and we made it so -- you walk in this,

[6:43] it's breathtaking. But right now, it's

[6:46] phenomenal from what he just did and

[6:48] completed; which is really cool. So

[6:52] for me, about two, three years ago,

[6:53] this kid was in the front of our vet

[6:56] center, painting. I get what the hell

[6:58] are you doing? And he was actually

[7:00] with a project for a gentleman who was

[7:04] doing his scout for eagle, so he

[7:07] painted the eagle on this. So when you

[7:10] guys and see the eagle in front, that

[7:12] is trison's work. Which is amazing.

[7:15] So for two years, man, I keep driving

[7:17] by the road I wanting to find out -- he

[7:21] kept changing murals in front of his

[7:24] house. I have to acknowledge this is

[7:26] his family, if you could stand please.

[7:28] [ APPLAUSE ] And you got to give him

[7:35] gratitude, because they are dealing with

[7:37] this kid's passion, in front of

[7:39] their house. And so every time he is

[7:42] changing something, and, in fact I was

[7:43] upset, because I drove by and he just

[7:46] did one in one day, oh, my gosh, I

[7:48] didn't even take a picture of it. I mean,

[7:50] this is what it is. This kid is just

[7:53] phenomenal. And he has something he

[7:55] wants to offer to you guys as well at

[7:57] the finish, I want you to listen to

[7:59] what he wants to accept. Thank you,

[8:01] guys and thank you so much for everything that you have done,

[8:04] and believe me from the veterans'

[8:07] hearts we appreciate it. We really love

[8:09] what he has done and it's going to put

[8:11] the Kaua'i veterans Museum on the

[8:13] map. Because people are going to be

[8:15] like I have to see this thing. So

[8:17] thank you so much. Anyway, that is what

[8:22] I enjoy. And the unveiling is going to

[8:27] be Friday, 5:00 come out, we're

[8:28] going to be doing is we're going to do a

[8:30] small presentation, and then we're

[8:32] going to -- Jade is going to do a

[8:34] blessing and I have Kaua'i island Brewery

[8:38] bringing alcohol in, it's legal, guys.

[8:41] And Uncles is providing food.

[8:44] Unveiling at 5:00, 5:30 we'll do a tribute

[8:48] with Jurassic Park in Kaua'i and

[8:51] show the movie premiere of Jurassic

[8:56] Park. God bless you. You are awesome. I

[8:59] shut the Museum down for two months

[9:00] just to give him space and every time I

[9:03] walked in this, I watched his wheels

[9:06] turn, constantly. His artwork is

[9:13] spray-paint, which really blows me

[9:16] away, amazing, amazing stuffment I will

[9:18] turn it back to you. >> I put together a proposal

[9:21] for a teen mural initiative program,

[9:22] just to see if there's interest. And

[9:25] it's -- I don't know if --

[9:28] >> One of our Staff will get it.

[9:30] >> He made seven packets for you.

[9:32] >> It's to do place-based murals. So

[9:38] telling stories about the ahupua'a and

[9:41] bringing education into the community

[9:43] for people to learn and then it could

[9:47] become a tourist, like people could

[9:48] take pictures of the murals, with the

[9:51] muraling and it could become an educational tool. So kids

[9:56] could learn, kids could get involved with

[10:00] artwork, because Art is not really as

[10:02] supported in the schools any more, and I

[10:04] wanted to try and introduce this as a

[10:07] way to -- as far as it's also therapy

[10:10] for me. So like it becomes a healing

[10:15] Art -- Art becomes a healing tool, too,

[10:17] for people that are going through it.

[10:20] Like for my concussion stuff I had to use

[10:21] Art as a way to heal and maybe other

[10:24] people could use Art as a way too,

[10:27] like how I have been learning from my

[10:30] ownself, and that is another way to be a

[10:33] part -- like to help the community as

[10:35] well from my side, I think, as an Artist.

[10:39] A muralist. I am really

[10:43] passionate about doing mental health advocacy as

[10:45] well, because of my concussions,

[10:47] yeah. So I'm trying to do Workshops with

[10:50] kids, or more for students that are

[10:54] going through stuff with school, you

[10:57] know? >> I'm intrigued.

[11:01] Because it's like Bart said, you

[11:04] painted this with spray cans. I just

[11:07] have a hard time understanding how --

[11:10] like were you an Artist, pencil Artist

[11:13] or regular Artist before? >> Yes.

[11:15] I started out drawing and then I

[11:18] started getting into, like, just trying

[11:22] my dad bought me spray-paint. >> Keeping it legal.

[11:25] >> Yes. And that is how I started to

[11:29] get into realism. And in the Museum,

[11:31] it's actually realism painting.

[11:33] It's like I'm actually painting real

[11:37] figures, like movement, it looks really

[11:38] different from what you think of Art.

[11:43] It's more cinematic realism is what I'm

[11:46] kind of calling the style I'm painting

[11:48] it. It looks like a movie scene with

[11:56] Ujima and I paint a lot of bird and

[12:00] nature scenes and it's inspirational

[12:03] for me. So painting Iwis, but making

[12:05] it real on the walls so people know

[12:07] what the Iwi ilook like many front of

[12:11] them and kids get to see what Iwi looks

[12:15] like without going to Koke'e and

[12:17] actually learning about educational

[12:21] side of mural. That, too. >> Wow, I don't want to -- I

[12:25] want to allow my colleagues to ask

[12:28] questions, too. I got to ask, did you --

[12:31] are you professional trained? Did you

[12:32] go to school?

[12:33] >> I went to school in San Diego for

[12:35] graphic design. >> Okay. All right.

[12:37] >> And I picked it up. >> All right. Thanks again.

[12:39] >> Thank you. >> And congratulations !

[12:42] appreciate it. Thank you. >> Questions?

[12:44] >> Well, first of all, I want to say

[12:46] thank you, and we're having a little

[12:50] bit of audio/visual problem, but I'm

[12:51] not. I'm watching your Art going

[12:53] across the screen here, it's at the

[12:58] Museum. And it's beautiful. >> Thank you.

[12:59] >> And thank you. I'm hoping that it

[13:01] does make it up for everybody to see,

[13:04] but that's extraordinary. I can't wait

[13:07] until Friday to go in and look at it.

[13:08] I know you have done some things along

[13:13] Rice Street here and I have been able

[13:17] to watch you are as you are doing it.

[13:20] I appreciate you so much. I'm so

[13:23] thankful that you have this -- when I

[13:24] was young I had some traumatic brain

[13:27] injury and I have been able to overcome

[13:30] that pretty well, but I identify with

[13:35] what you've endured and I just so much

[13:40] gratitude for how it's expressed itself

[13:42] beautifully. And I'm really happy to

[13:44] try and help support your ideas for how

[13:47] we can move this even further. >> Thank you.

[13:49] >> Thank you, Bart; for doing this for

[13:54] our veterans. And putting us on the

[13:56] map, and I'm really, really thrilled

[13:59] with how our Museum in there honors our

[14:03] own people here. I have been here and

[14:05] watched it, but I haven't seen it new,

[14:08] haven't see it now. So yes. >> Anyone else? Mr.

[14:12] Kaneshiro? >> Just a quick question. So

[14:13] the only way you can practice graffiti

[14:16] is on like a big wall? You can't

[14:18] take out a piece of paper; right?

[14:21] >> Not really. I use ply Board in

[14:24] front of my house and the backyard.

[14:26] >> , In fact, stop by and take a look

[14:29] at latest one he just did. Oh, my gosh.

[14:34] >> That is awesome. I would say,

[14:37] congratulations, and thanks. I'm very

[14:39] excited to see it. I'll be there

[14:41] Friday and keep it up. I was wondering

[14:44] it's not that easy to practice when you

[14:46] need a big landscape. I don't know

[14:48] when you are practicing. >> Travel. Travel around the

[14:54] island, like Hawai'i painting at

[14:55] schools. >> Actually gave him 20 images

[15:00] that the veterans thought were great

[15:02] because we want to break it down into

[15:04] con ticket conflict and World War

[15:11] I, II and Korean and Vietnam. So the

[15:14] images turned out really cool. I'm

[15:19] very honored to say that is one of

[15:21] the best murals I have ever seen

[15:24] so you hand sketch to them? >> I have a graphic design and

[15:33] use Photoshop to mock it up to show

[15:36] to the client or whoever for approval.

[15:42] >> He has another contract with our

[15:48] Commander for two murals inside the

[15:50] center as well, which is real ly going

[15:55] to be cool. So we're first. >> So I'm assuming this is

[15:59] your business?

[16:00] >> Yes. >> So how does someone that is

[16:04] watching that wants to? >> So I have a website called

[16:08] inspire to create media.com.

[16:10] >> Inspire to create media.com. >> And I do logo design, shirt

[16:18] designs, auto graphic design and murals

[16:20] is my passion. I'm trying to do more

[16:22] murals for business as well. So like

[16:26] small businesses, more, institutionally, just whoever

[16:28] really is interested. I like to do story

[16:32] mural stuff, its more fun for me,

[16:33] because I get to tell a story how to my

[16:35] Art. That is even more fun.

[16:40] >> I suck so bad at Art. It's just a

[16:45] unique talent, and it's just -- anyone

[16:47] else? Ms. Holland. >> I just want to echo the

[16:52] gratitude for you and excited on Friday

[16:54] to see your murals. So thank you for

[16:57] that. >> Thank you.

[16:58] >> Mr. Bulosan? >> I have been a huge fan

[17:01] since the beginning. I think I was away

[17:03] when you did your first mural as a High

[17:06] School student and I was just

[17:09] thinking, man, Kaua'i has a star, and I'm

[17:13] excited, and ever since that beginning you

[17:15] have kind of led the pack on Art in that

[17:19] medium for our community and inspired

[17:21] so many people. I think one of the

[17:24] things people especially young people

[17:29] and people in our community you

[17:31] can't realize the impact that you

[17:33] have until you get to hear the storiess

[17:35] and you don't really hear the stories

[17:38] often. So I just want to thank you for

[17:41] all your help for our community,

[17:44] because personally for me, you have

[17:46] changed my life in so many different ways

[17:50] it's hard to explain just with my

[17:53] wife and my kid, every time we go

[17:56] somewhere and see your mural it make a huge

[17:59] impact in a positive way. And so I hope

[18:01] you can take a moment to just feel all

[18:04] of the goodness that you put out for

[18:07] our community and really transform

[18:09] the experience that you had, and

[18:12] make lives better. We just can't thank

[18:14] you enough and your family, and everyone

[18:16] that supports you and is there for

[18:19] you, because it's just immeasurable

[18:20] the impact that you are making.

[18:22] Thank you. >> Thank you. I really

[18:24] appreciate it. >> Mr. Carvalho.

[18:26] >> I appreciate your gift. You have a

[18:28] special gift. A A lot of it also has

[18:33] to do with visualization too, and

[18:34] dreams and I think that is another big

[18:37] part before it actually happens. I

[18:39] have seen some of the work you have

[18:40] done, obviously and look forward to

[18:42] Friday. Just continue doing what you

[18:43] are doing and you are an inspiration

[18:46] for the younger generation coming up.

[18:50] It's impacting our community and I like

[18:52] the cultural part, too, that you are

[18:53] looking at, that will really bring to

[18:55] the table, upfront and make it have a

[18:59] true meaning and value to each part of

[19:01] our island, as well as to our community

[19:04] culturally. So keep doing what you are

[19:05] doing and we are totally there for you.

[19:08] Mahalo. >> Thank you.

[19:10] >> All right, Mr. Kuali'i. >> I was curious because he

[19:14] asked about any training and you said

[19:16] you went to school in San Diego,

[19:17] and you picked it up.

[19:18] >> Yes. >> So like, was it University,

[19:22] or you were there for a long time? I

[19:25] think it's probably more a natural

[19:28] talent and gift, but I assume you have to

[19:31] hone that, and learn some skills,

[19:33] but what was the education exactly,

[19:36] young people to hear?

[19:37] >> So I have a Bachelors of science in

[19:45] graphic design and while I was in

[19:49] College, started my -- when I was in

[19:50] College, I did some mural stuff around

[19:53] the school, and stuff. But I actually

[19:56] had some people teach me as well along

[19:59] the way. I actually had to believe in

[20:02] myself first to be able to do it kind

[20:05] of mural artform. I had 200 people

[20:08] that from here and O'ahu, and I want to

[20:12] acknowledge them as well. I had to --

[20:15] so I'm kind of trained in both sides,

[20:19] educationally and that side of the

[20:23] mentorship. So in my sense I'm bringing lineage of Artists

[20:30] throughout the generations and not just

[20:32] one person, but multiple people are

[20:33] behind me. I kind of want to carry

[20:37] that throughout my career.

[20:38] >> Well, I'm in awe of what you do,

[20:42] and I think it's amazing and beautiful

[20:44] and I'm looking forward to Friday. I'm

[20:47] planning on going and Bart let us know

[20:54] a while ago. I am intrigued with your

[20:57] proposal and to talk with the Office of

[21:01] Economic Development and budget is

[21:02] coming up and assuming money is involved.

[21:05] >> He is looking for mentors from you

[21:07] guys, so please whatever you can do,

[21:09] get this kid on the right path, because

[21:11] what you is talking about doing, all of

[21:14] this tagging that we see, let's get the

[21:17] kids creative to they are tagging to

[21:18] Art. >> And in a place that people

[21:22] want it. >> Correct.

[21:23] >> Thank you. Thank you, Chair.

[21:25] >> Thank you. I'm in, as you said, I'm

[21:28] in awe. We don't often get feel-good

[21:32] moments in these Chambers, but this is

[21:33] one of those that I'm just inspired.

[21:36] For me, you know, thinking about the

[21:38] gift that you have, and the gift that

[21:41] you are willing to share with the other

[21:44] kids coming up it's heartwarming, I

[21:46] guess is the right word. It's just a

[21:47] would wonderful way to kick off our New

[21:51] Year. Thank you very much. With that,

[21:53] we'll take a short break and get the

[21:56] photo. Mr. Fujimoto is here, who only

[21:59] comes on very special occasions. So

[22:00] with that, we'll take a short break.

[27:07] [ GAVEL ] With that we'll call the

[27:11] meeting to order, roll call, please.

[27:13] >> Council Member Bulosan? >> Here.

[27:16] >> Council Member Carvalho? >> Here.

[27:18] >> Council Member Cowden? >> Here.

[27:19] >> Council Member Holland? >> Present.

[27:21] >> Council Member Kaneshiro? >> Present.

[27:23] >> Council Member Kuali'i? >> Present.

[27:25] >> Council Chair Rapozo? >> Here.

[27:27] >> Seven present. >> Can I get a motion to

[27:29] approve the agenda.

[27:30] >> So moved. >> Mic.

[27:33] >> Second. >> Moved and secondeding. Any

[27:35] discussion or public testimony? Seeing

[27:37] none all in favor say aye? >> Aye.

[27:40] >> Motion carried. Next item, please.

[27:41] >> Chair, next item on page 2 the

[27:43] minutes of the following meeting of the

[27:45] Council, the December 17th, 2025

[27:46] Council meeting. >> Move to approve.

[27:49] >> Second. >> Moved and seconded. Any

[27:51] discussion or public testimony? Seeing

[27:53] none, all in favor say aye?

[27:54] >> Aye. >> Motion carried. Next item,

[27:57] please. >> Item on the Consent

[28:01] Calendar for receipt C-2026-01.

[28:03] >> Move to receive. >> Second.

[28:04] >> Moved and seconded. Any discussion

[28:06] or public testimony? Seeing none, all

[28:07] in favor say aye? >> Aye.

[28:09] >> Motion carried. At this time, if

[28:11] there's no objection I would like to

[28:15] take C-2026-04 out of order, please.

[28:20] >> C-2026-04 communication from

[28:21] Council Chair Rapozo and Council

[28:23] Vice-Chair Kuali'i requesting the

[28:25] presence of the Roslyn Roz Makaula

[28:29] Director of Government relates Kamehameha Schools to provide a

[28:31] briefing relating to the legal challenge to Kamehameha Schools

[28:37] admission policy. >> Move to receive.

[28:38] >> Second. >> Moved and seconded. Thank

[28:39] you. With that I will suspend the

[28:46] rules and invite the Representative of

[28:52] Kamehameha Schools up here. We have a

[28:54] companion Resolution and we'll get the

[28:56] briefing and we'll have the discussion

[28:58] and questions, and then we'll take the

[29:01] Resolution immediately following the

[29:02] briefing. But I would ask that all the

[29:04] discussion, and things happen here at

[29:06] the briefing and we can move right to

[29:09] the Resolution. With that. >> Okay.

[29:11] >> Good morning and Happy New Year.

[29:13] >> Good morning. Happy New Year.

[29:26] Mahalo nui loa. Our Vice President

[29:28] abad is here and she going to come up

[29:32] and provide today's briefing and I will

[29:34] follow-up with the testimony later.

[29:36] Mahalo. >> Thank you.

[29:43] >> Good morning. >> Aloha Kakou. Mahalo,

[29:47] Chair. Mahalo Vice-Chair and Council

[29:50] Members. So appreciate the opportunity

[29:51] this morning to have some time with

[29:53] you folks.

[29:54] >> If you could just introduce yourself for our captioner.

[29:57] >> Yes, my name is Kekua abad. I'm

[30:01] the Vice President of Strategies and

[30:05] experience at Kamehameha. So one of

[30:07] the executive team leaders. On behalf

[30:10] of Jack and the rest of the executives,

[30:12] we want to share some Aloha with you,

[30:15] and some information that we think

[30:17] might be helpful for the Resolution

[30:18] that you have before you, and we so

[30:21] thank you, Chair, Vice-Chair, and

[30:23] Council Members, for consideration of

[30:25] the Resolution. >> You were at Waimea?

[30:28] >> Yes. >> At the theater?

[30:30] >> Yes. >> You were a little more

[30:35] energetic at the theater, bouncing all

[30:36] over the place.

[30:37] >> Yes. >> How it's here, I did attend

[30:39] and I got to hear, I think a lot of

[30:43] people have heard about this

[30:45] litigation that is ongoing. But it was only at

[30:48] that presentation that I got to

[30:52] fully understand what is going on,

[30:54] and in my opinion, how bad it is in what

[30:57] is going on. So I did want the

[31:00] community to be able to hear what is truly

[31:05] going on, and the best people to do that

[31:07] would be you all. Welcome.

[31:16] >> Mahalo Nui. Thank you. So before we start

[31:24] introducing ourselves, maybe we don't

[31:28] have a whole stack on the situation,

[31:30] because we have done the presentation

[31:31] and I didn't want to have you folks

[31:35] double hear it, but for everyone's

[31:38] sake, maybe I will just set some

[31:41] context. So what we're facing as

[31:44] Kamehameha is a legal challenge brought

[31:48] forward by Edward bloom of students for

[31:51] fair admissions. He and his organization are situated in

[31:57] Virginia, and they are claiming that

[32:01] we're in violation of a certain law,

[32:06] federal law 42 U.S.C. 1981 that was

[32:11] actually written a very long time ago.

[32:13] It comes to us from 1866. So this was

[32:19] back right after the Civil War and

[32:21] there was a piece of law initiated to

[32:27] ensure that the emancipated slaves at the

[32:29] time, so this is Abraham Lincoln behind

[32:33] the original sort of civil rights

[32:39] legislation that emancipated slaves

[32:40] would have the opportunity to enter

[32:42] into contracts like everyone else

[32:45] without being discriminated against,

[32:46] because at the time, of course some

[32:50] were being discriminated against and in

[32:51] the society at the time. So if you

[32:53] were trying to rent a home or something, you might not be

[32:55] able to get a contract. So you are at the

[32:58] whim of a landlord doing who knows

[33:01] what? Kicking you out or changing the

[33:04] rent. There was no contract to hold

[33:08] to. And so the law said that everyone

[33:10] should be able to enter into contracts

[33:15] equally, and no discrimination there.

[33:16] So that is a law that we're being

[33:21] accused of breaching right now. Let me

[33:23] maybe just to introduce ourselves. So

[33:26] what is at stake? It's our preference

[33:30] policy, but we're concerned if they are

[33:33] looking at Hawai'i's estate and saying

[33:35] that her willing and her wishes that

[33:39] preference for the Lahui, the people she

[33:42] was caring for as Chiefess, that

[33:44] her wish to care for them is up for

[33:48] interpretation and up for a third-party

[33:52] from Virginia to impose upon. Than

[33:55] what else is at stake? Just so share

[33:57] who we are and what other parts of the

[34:01] us as an organization might be chipped

[34:03] away at little by little? If they can

[34:06] chip away the at this fundamental part

[34:08] of her willing, what else are they are

[34:10] able to chip aat? The use of maybe

[34:13] some of our resource for -- you get

[34:19] what I mean? So you are familiar with

[34:21] us. We have our three campuses and 30

[34:26] preschools. 157 of these students are

[34:31] from Kaua'i. We have community programs every year about 67

[34:38] million are used -- dollars are used to

[34:42] support scholarship and community

[34:43] grantses. We have about a dozen different

[34:46] community organizations providing

[34:49] yearlong services for Kaua'i families

[34:51] and students here on the island.

[34:55] In fact, thank you for introducing us to

[34:58] Trysen, because I talked with him

[35:00] afterwards and we would love to work with

[35:02] him with some of the Charter schools

[35:04] that we support on the island. I would

[35:06] love to get some murals done here and

[35:08] that is some of the things that we do

[35:11] in community. We have nearly

[35:15] 11,000 acres of conservation land. We have

[35:20] an endowment that Hawai'i has very

[35:25] generously -- sorry, I'm not sure what

[35:26] is going on with that -- >> Hold on real quick. I'm

[35:32] sorry to do this. But we're going to

[35:34] take a break. We're going to take a

[35:37] short recess, because the whole

[35:38] purpose of this is to get this information

[35:40] out to the community, and when our

[35:43] thing cannot work, so we'll take a

[35:45] recess and get I.T. over here. Sorry

[35:46] about that. >> It's okay.

[35:47] [ GAVEL ] yes.

[1:29:47] Yes. [ GAVEL ]

[1:31:27] >> We'll call the meeting back to

[1:31:29] order. Thank you for your patience.

[1:31:32] With that, if you would not mind coming

[1:31:35] back up. Sorry for that disruption.

[1:31:45] >> Mahalo. Aloha. >> Aloha.

[1:31:47] >> I'm going to try -- I'm going to maybe summarize a

[1:31:58] little bit and stick to the slides.

[1:31:59] So with a we're talking about when we

[1:32:03] last left off is what is the at stake.

[1:32:07] What is Kamehameha and what we're

[1:32:10] trying to do and a little Artistic rendering

[1:32:13] of our theory of change. So every

[1:32:15] five years we do a new Strategic Planning.

[1:32:19] You see there's a code to it, our SP

[1:32:22] Strategic Plan 2030, and really speaks to

[1:32:24] where we have come as an organization

[1:32:27] and where we're heading. For those

[1:32:30] who remember older Kamehameha, like

[1:32:31] when I went there, back in the 80s.

[1:32:34] We wouldn't have spoken like this.

[1:32:36] This wasn't where we were at. We

[1:32:38] minor league have said the very first

[1:32:40] part and it's kind of hard to read

[1:32:43] in this Artistic rendering, so I will

[1:32:44] share it. When we operate world-class

[1:32:47] schools, that is Kamehameha since 1950s,

[1:32:52] 60s. But we have been growing and

[1:32:56] our theory of change that we're charged to

[1:32:58] fulfill in the new Strategic Plan adds

[1:33:01] in the notion of 'Oiwi leaders and

[1:33:10] seeing our ho Mana, when we think about

[1:33:13] what Poi really wanted to do. She

[1:33:15] wanted to have and in her will she said

[1:33:22] "good and industrious men and women."

[1:33:23] Those who will be productive in the world

[1:33:27] and help the community, the Lahui,

[1:33:29] Hawai'i and beyond. So we're saying

[1:33:31] that is what we mean by 'Oiwi leaders

[1:33:35] and the set of learner outcomes that we

[1:33:39] want to instill the sense of Kuleana in

[1:33:45] our student. So this is where

[1:33:47] Kamehameha has been moving in the last 10,

[1:33:52] 15 years and really anchoring to a

[1:33:58] Hawaiian organization and saying

[1:34:04] regenerate 'aina, again a different

[1:34:06] sense of the 60s and 70s, as people saw

[1:34:08] our 'aina as a way to make money so the

[1:34:18] schools could operate, but to think

[1:34:20] about 'aina as community rejuvation and

[1:34:23] how the 'aina is regenerated and in

[1:34:27] some senses it's generating income, but

[1:34:29] in instances it's focusing on making

[1:34:31] food for the community, and how it's

[1:34:33] bringing water, you know? Creating

[1:34:36] these great forests that draw water

[1:34:42] that create aquifers that give you Wai

[1:34:46] to drink. So it's right in the change

[1:34:51] and we say, too, when we offer world-class schools what we

[1:34:54] have been doing all along, develop 'Oiwi

[1:34:58] leaders the sense of growing new

[1:35:01] Homomanu that they have a Kuleana and

[1:35:08] regenerate aina, we will together with our

[1:35:13] communities, there wasn't 67 million

[1:35:15] going into community grant and scholarships, but now it is and

[1:35:20] that community partnerships are

[1:35:21] essential. We will together with our

[1:35:23] communities, and this last part is I feel

[1:35:27] like it's the big turn that Kamehameha is

[1:35:30] making in this SP 2030 cycle. Exercise

[1:35:37] the -- necessary for thriving and

[1:35:41] self-determined Lahui and it's one of

[1:35:42] the words that we hear a lot of other

[1:35:48] instances, and we heard it referenced

[1:35:50] as the life of the land is perpetuated

[1:35:54] in righteousness, but it's so much more

[1:35:56] than life. It's the whole set of ideas

[1:36:01] from breath to agency, to rising up, to

[1:36:10] sovereignty, to independence. All that

[1:36:12] of that is a waand saying as we face

[1:36:15] this sort of issues that we have as a

[1:36:21] Lahui as Hawai'i and larger Hawaiian

[1:36:23] community we're all here to work for

[1:36:26] and with, that it is this AWWA that is

[1:36:29] ultimate ly some of the biggest solutions to the biggest

[1:36:35] problems. This is what we're committed to

[1:36:36] and something that we had put forth

[1:36:39] at the close of June in order to be

[1:36:44] ready for our next Fiscal Year, which is

[1:36:46] July. So we put this out there for a

[1:36:50] while and sure enough, the kinds of

[1:36:52] challenges that are always before us in

[1:36:55] October we had SFFA putting out a call

[1:37:00] to people, hey who wants to be a

[1:37:03] plaintiff? We're looking to sue

[1:37:07] Kamehameha and by November they filed

[1:37:10] their complaint in court. We're saying

[1:37:13] at this stage, some of you may have

[1:37:15] heard a recent announcement, we're

[1:37:16] saying it's very important for us to

[1:37:19] double down and understanding who we

[1:37:21] are as an organization. We do not see

[1:37:24] ourselves as being founded by a

[1:37:31] benefactor for the service of education. No, really it's

[1:37:39] always been and they are looking at this

[1:37:42] way and we're looking at it this way

[1:37:44] and it's always been the same thing.

[1:37:46] This is a Chiefess, who is trying to take

[1:37:48] care of her people. She was endowed

[1:37:51] with 'aina, like many of her Kupuna,

[1:37:55] and what they do with their 'aina?

[1:37:58] They managed it well so people could

[1:38:00] thrive and make a good living off that

[1:38:02] land. In this case, she saw that land

[1:38:04] as providing people with

[1:38:06] education, feeding people with education

[1:38:08] to then do good, be good and

[1:38:10] industrious. So that is what we're trying to

[1:38:13] protect is her will to take care of her

[1:38:18] Lahui in this way and make sure if this

[1:38:22] is the Ka'auhuhu, the Foundation

[1:38:24] provided that they understand all of our Hu

[1:38:31] Mauna and it's not like shing is giving

[1:38:34] us a gift to go and take care of myself.

[1:38:38] No, no, no; this is a kuleana she is

[1:38:47] exercising and to be good and industrious. So that is what

[1:38:53] is at-stake saying that they want

[1:38:54] to define us in their way and

[1:38:56] saying that we can't continue the work in

[1:38:59] mind. So we so appreciate that you folks

[1:39:01] are taking the time to consider

[1:39:05] ways that Kamehameha and Poi might be

[1:39:08] supported at this juncture. And happy to

[1:39:10] answer any questions that might come

[1:39:13] up. Mahalo Nui for the time .

[1:39:14] } thank you. And again, I apologize. I

[1:39:17] know the presentation was a little

[1:39:19] longer, not much, and you talk a lot

[1:39:23] about the accomplishs and plan for

[1:39:27] Kamehameha School and the impacts that

[1:39:28] you have with our kids on Kaua'i so I

[1:39:32] appreciate that part. For me it was

[1:39:34] more important to inform the public of

[1:39:36] what is really going on. For the life

[1:39:39] of me I can't understand how this

[1:39:43] Attorney out in Virginia feels like it

[1:39:46] is that important to him, and his firm

[1:39:49] or whoever to come out and take on

[1:39:53] Kamehameha Schools. For my own non-lawyer, I always wanted to

[1:39:56] be a lawyer, but my test scores were

[1:39:59] too high

[1:40:00] [laughter ]. But you know, again, correct me

[1:40:08] if I'm wrong, what I heard at Waimea

[1:40:10] and what I heard today this was in the

[1:40:15] will -- this was her will and her

[1:40:17] desire and what she wanted for the kids of

[1:40:19] Hawai'i and this is a private school.

[1:40:21] And this is an institution that accepts

[1:40:25] no federal funds at all.

[1:40:27] >> Zero. >> Which again, in my

[1:40:34] non-legal analysis, where and I don't

[1:40:35] want to get too technical and legal and I

[1:40:37] understand you are in litigation, so we

[1:40:40] have to be very careful. How does that

[1:40:44] pass the test if we're private, we're

[1:40:47] not funded by public funds, and --

[1:40:52] sorry, why does this thing keep --

[1:40:55] okay. I got to be nice. More important to me is the fact

[1:41:05] that this was in Pauahi's will, and to

[1:41:09] me, that is a very sacred document. So

[1:41:11] how does this thing play out and again

[1:41:14] you have to push your mic, because this

[1:41:18] thing is cuckoo.

[1:41:19] >> There's a host of different civil

[1:41:21] rights law; right? As you talked

[1:41:22] about it; right? Because we're

[1:41:25] private entity, certain civil rights

[1:41:27] laws don't apply, because we do not

[1:41:30] take any federal or even state funding,

[1:41:33] other civil rights laws don't apply.

[1:41:37] It's this one piece 42 U.S.C. 1981 that

[1:41:41] speaks of contracts and that is the one

[1:41:44] that we're being charged -- that we're

[1:41:49] supposedly breaching according to SFFA.

[1:41:51] Again, we feel that our 2006 Ninth

[1:42:02] Circuit Court ruling is solid, and

[1:42:04] because it was the same thing back in

[1:42:07] 2003. There was a case Doe v. Kamehameha Schools the exact

[1:42:14] same charge of breaching 42 U.S.C.

[1:42:18] 1981 and we defended it. Ultimately we

[1:42:23] were successful at Ninth Circuit

[1:42:25] Court -- sorry, yes, Ninth Circuit

[1:42:28] Court, the appellate court where we fought

[1:42:32] the case and stated all of our

[1:42:34] reasons, you know? We aren't there, we

[1:42:36] aren't that, as we were just saying; right?

[1:42:38] And we believe that the timeses the

[1:42:43] argument was Kamehameha is doing exactly

[1:42:45] the kind of thing that Abraham

[1:42:47] Lincoln was trying to do, the real reason

[1:42:51] for the 1866 law was to even the

[1:42:55] playing-field and make sure that those

[1:42:59] emancipated slaves who weren't getting

[1:43:01] contracts were able to get that

[1:43:06] remediation and at that time that is the

[1:43:10] argument we put forth. Eight of the seven

[1:43:13] Justices of the Ninth Circuit Court

[1:43:15] agreed with us. So we won by 8-7 margin

[1:43:19] there. On top of that, so we stand in all

[1:43:21] of that, but on top of that, we're

[1:43:25] putting forth like you saw our

[1:43:28] Strategic Strategic Plan and you really

[1:43:31] need to think about us not from your

[1:43:34] cultural lens, and applying your view

[1:43:36] this way of how you see us; that there

[1:43:40] is someone who is asking for

[1:43:44] tuition, and contract that is grant in

[1:43:48] services and this sort of transactional

[1:43:51] nature. We're saying really it's always

[1:43:53] been more of a relationship between

[1:43:56] a Chiefess and her people. And

[1:43:58] that is the heart of it. So even if

[1:44:00] you look at the tuitions that we have

[1:44:05] been charging it was minimal. It's

[1:44:07] always been minimal for the education

[1:44:10] costs that occur. Tuitions have

[1:44:12] always been historically only about 3% of

[1:44:14] the total, and that 3% is coming

[1:44:18] from the fact that why is it so small?

[1:44:22] Well, tuition, and I put it in quote

[1:44:25] because it's not like how most school

[1:44:29] charge tuition; right? About 85-90%

[1:44:30] of all of the costs have always been

[1:44:34] borne by Pauahi. So you know, for --

[1:44:39] >> Vice-Chair. >> Any of us in this room who

[1:44:42] have gone to Kamehameha in earlier

[1:44:47] times, that was what was given to us;

[1:44:50] right? We were always on massive

[1:44:54] scholarship from Pauahi and she has always

[1:44:55] been in this relationship. And even

[1:45:00] today, 75% of all ho Mauna are on full or

[1:45:05] partial financial aid. So what is

[1:45:07] being paid by families is just tiny margin

[1:45:11] of that 3%. So we definitely feel that

[1:45:13] we're able to manage that cost going

[1:45:18] forward, and certainly it's not going to

[1:45:21] diminish what we're investing in the

[1:45:24] community. So we're solidly holding

[1:45:26] fast to keeping the same investments

[1:45:30] going, scholars and grantss, and making

[1:45:33] sure that now what Pauahi had intended

[1:45:36] that it be more of a relationship.

[1:45:37] That we go all the way, and we make it

[1:45:39] clear to everybody, it's always been

[1:45:41] this. And that last 3 per % to move

[1:45:47] aside and say there should be no

[1:45:50] mistake by anyone now. It's the

[1:45:52] Chiefess taking care of her people and

[1:45:55] the Foundation of Kuleana that has been

[1:46:00] established. So that I hope that helps.

[1:46:02] >> It helps. I think that whole what

[1:46:06] the Chiefess wanted for her people is

[1:46:08] more of the issue that I have versus

[1:46:13] the -- what they are claiming as

[1:46:16] Constitutional violation. I think it's

[1:46:18] purely disrespectful to me for them,

[1:46:20] because isn't it true that the last

[1:46:23] lawsuit that was filed that the Justices ruled in your favor.

[1:46:28] That one, there was a student that

[1:46:32] was attempting to gain entry into

[1:46:40] Kamehameha schools, correct? And may

[1:46:42] have sought that person out and try to

[1:46:45] apply for Kamehameha School and be

[1:46:48] denied and sued. My point there was a

[1:46:50] student who was denied entry and the

[1:46:52] lawsuit followed. In this case, there

[1:46:54] is no student, correct? when the first complaint

[1:46:59] oh, they found one subsequently? >> They did. They filed an

[1:47:04] amended complaint.

[1:47:05] >> You see? >> So yeah.

[1:47:08] >> That is even more disrespectful.

[1:47:13] >> Neither, you know, so initially

[1:47:17] they hadn't even applied and in this --

[1:47:21] there was an instance there was someone

[1:47:23] who had applied and was put on a

[1:47:26] wait-list. >> Any questions? Council

[1:47:31] Member Cowden?

[1:47:34] >> Well, >> Well, I'm not sure if it's

[1:47:38] a question.

[1:47:39] >> Questions. Mr. Kaneshiro? >> In general, is it going to

[1:47:43] get any traction? When I hear those

[1:47:45] types of lawsuits, oh, this thing is

[1:47:46] going to try. They can try and fight

[1:47:48] it. They can try and make their

[1:47:50] argument, but I always feel at the end of the

[1:47:52] day, they are just reaching, you know?

[1:47:54] That is just my opinion, and from the

[1:47:56] very start when I see this type of

[1:47:58] stuff, but I know it takes time,

[1:48:00] energy and money to fight it, which could

[1:48:03] go to better uses; right? It could

[1:48:05] be going to more education for students.

[1:48:07] But at the end of the day, I always

[1:48:09] feel like it's going to go away

[1:48:11] eventually, because I feel like they are

[1:48:13] just reaching with a lawsuit like

[1:48:15] that. You see them getting much traction,

[1:48:18] or just a matter we just got to fight

[1:48:20] it, spend the time, spend the money and

[1:48:26] eventually win? >> We're taking it very

[1:48:28] seriously for a number of reasons. One

[1:48:31] significant one is that SFFA has been

[1:48:37] successful. They sued Harvard University of

[1:48:40] North Carolina, and won. So that was

[1:48:44] -- they were using the piece of law

[1:48:48] relating to federal funding; right? So

[1:48:51] because these universities got federal

[1:48:53] funding, they are saying that okay now

[1:48:56] you can't have affirmative action as part

[1:48:59] of your application process. Certain

[1:49:02] groups even though what you are trying

[1:49:04] to do is create student population

[1:49:07] that reflects the regular population

[1:49:10] out there. Of course, this is

[1:49:12] something that was supported, and

[1:49:16] encouraged, ten years ago. In any case, SFFA

[1:49:20] won. So the kinds of legal precedence

[1:49:23] that had been set that were supportive

[1:49:26] of that are no longer. So that is the

[1:49:30] change that makes our situation a

[1:49:32] little different than it was back in

[1:49:34] 2003 through 2006 when we were

[1:49:39] fighting the Doe case.

[1:49:40] >> Council Member Cowden. >> Probably said this, but

[1:49:43] what court are you facing right now? What

[1:49:45] level of the courts? Is it?

[1:49:48] >> The District Court. >> Federal District Court.

[1:49:51] >> First level. >> I was looking and it's not

[1:49:55] just Harvard. It looks like --

[1:49:56] >> Yes. >> The U.S. Air Force Academy.

[1:50:01] I mean, the levels of who they

[1:50:03] are going after are the big league;

[1:50:05] right? >> Yes.

[1:50:08] >> So there's about seven or eight

[1:50:12] schools that are being challenged and I

[1:50:15] don't even see Kamehameha Schools on

[1:50:16] the list; right? So these are big

[1:50:22] schools. What about the Native American schools which I don't

[1:50:25] think have quite the same foundation

[1:50:28] that Kamehameha Schools have. I

[1:50:29] grew up near the reservations, so they

[1:50:32] were reservation schoolss and those

[1:50:34] were intended to separate people

[1:50:38] from their family and their cultures. How

[1:50:45] is that paralleled? Is there any

[1:50:49] question on Native-American schools?

[1:51:04] >> SFFA hasn't gone through those and

[1:51:09] something that our legal team is taking

[1:51:10] into consideration. >> Because it's when they

[1:51:18] swing they want to hit. When you look at

[1:51:21] the Foundational institutions that

[1:51:24] they are going after, they're big. So I

[1:51:28] think Kamehameha Schools maybe they

[1:51:29] are just trying to grab where can we

[1:51:32] find an extreme? You know? Because if

[1:51:34] they can take down something as pono

[1:51:39] as Kamehameha Schools, that is a

[1:51:42] very big statement.

[1:51:45] >> Anyone else? Mr. Kuali'i? >> Just kind of a broader

[1:51:54] question about a lot of the attacks on

[1:52:01] the Native Hawaiian people and

[1:52:03] Native Hawaiian program seem to come

[1:52:05] under the guise of discrimination of one

[1:52:09] race of people over another race of

[1:52:12] people. But isn't it true that Native

[1:52:17] Hawaiians in Hawai'i, it's not about our

[1:52:22] race, it's about our origin and being

[1:52:31] the only 'aina-based people from

[1:52:34] this place. So the word indigenous;

[1:52:36] right? We are the indigenous people

[1:52:39] of this place. And our aLili who ran

[1:52:48] the country at the time, continued

[1:52:52] even though their rule ended, their

[1:52:56] connection to the land and to the

[1:53:00] people continues because of their

[1:53:05] intelligence and thoughtfulness, and

[1:53:09] compassion, and forward-thinking to

[1:53:13] continue to invest. What more brilliant way than to ensure

[1:53:17] the future of a people, of a race, of an

[1:53:21] indigenous people from a place, then to

[1:53:23] invest in the education of their young

[1:53:27] people? So that, I mean the most

[1:53:29] important thing I thought you said was

[1:53:32] the thing about the creating industrious young men and

[1:53:36] women, and creating them with the

[1:53:40] responsibility of having to give back, give

[1:53:43] back to your family, give back to your

[1:53:45] neighbors, give back to your community,

[1:53:48] give back to your state, give back to

[1:53:50] the world and planet. I mean, you can

[1:53:52] spend rest of your life living Pauahi's

[1:53:56] legacy and trying to give back. But

[1:54:00] the difference is race-based versus the

[1:54:03] indigenous original people; right?

[1:54:05] >> I think you make a very significant

[1:54:08] point when Pauahi wrote her will in

[1:54:12] 1883, the Hawaiian Kingdom was still

[1:54:14] well in existence, very strong, in

[1:54:17] fact. And she does specify very clearly

[1:54:21] in her will that the preference, and

[1:54:25] she uses the word "preference for

[1:54:30] Aboriginals of Native Hawaiian blood."

[1:54:31] Because at the time in Hawai'i, the

[1:54:34] Hawaiian Kingdom had some citizens of

[1:54:38] all sorts of backgrounds, but the lands

[1:54:43] were designated in such a way that

[1:54:48] Native Hawaiian tenets, Aboriginals had

[1:54:51] certain rights to lands -- tenants. So

[1:54:53] she was honoring sort of that understanding that it is as a

[1:54:57] Chiefess, first and foremost, she needs

[1:55:00] to use her lands to support these

[1:55:03] people, who in the Kingdom context had a

[1:55:09] special kuleana to the land. That

[1:55:13] reciprocal relationship with the land. So

[1:55:14] I think that is a really important

[1:55:16] point and some people would make the

[1:55:20] issue that we need to consider the fact

[1:55:25] that the those rights may still in many

[1:55:31] respects, as for instance the Apology

[1:55:34] Resolution that President Clinton

[1:55:35] signed and the Congress at that time

[1:55:40] signed. Recognized those rights were

[1:55:47] never relinquished and President

[1:55:49] Cleveland called it an act of war and

[1:55:51] what is going on in other parts of

[1:55:54] world, it was considered an act of

[1:56:00] war that President Cleveland intervened

[1:56:04] here. >> Thank you. Thank you,

[1:56:05] Chair. >> Ms. Cowden. Nawab

[1:56:08] [ INAUDIBLE ] Many families that maybe don't

[1:56:29] have Hawaiian -- ancestral Hawaiian,

[1:56:31] but deeply care about in their

[1:56:35] lives surrounding hula, or any kind

[1:56:38] of cultural practices. So

[1:56:41] Kamehameha Schools typically support those

[1:56:43] schools; right? >> That is something that we

[1:56:47] want to emphasize that we would

[1:56:49] encourage more people to seek such education

[1:56:55] that are 'aina-based, culture-based and

[1:56:59] we're strong supporters. So all of

[1:57:09] those Kula are -- --

[1:57:14] -- I just mentioned the ones that we

[1:57:19] had historical strong relationships

[1:57:20] with and open to continue to develop

[1:57:24] further relationships. For some over

[1:57:26] 20 years we have been supporting these

[1:57:29] schools to some degree and happy to

[1:57:32] continue doing so. >> And even supporting kids go

[1:57:36] to island school. You guys

[1:57:38] support them as well; right? Hawaiian kids

[1:57:40] that go to island school they get [

[1:57:43] INAUDIBLE ] >> So there's -- we're

[1:57:48] finishing up some of those ki Puna

[1:58:03] scholarship and we're continued to redesigning

[1:58:05] with the hope to have them more tailored

[1:58:08] to the specific needs of the different

[1:58:12] regions and what would Kaua'i most find

[1:58:14] useful? So some of the conversations

[1:58:16] we would love to have with you folking

[1:58:18] and others how do we design them to

[1:58:23] really meet the needs of the

[1:58:33] community. They can still do other things

[1:59:13] in the way that they want to do, [

[1:59:16] INAUDIBLE ] It's only in your core campuses

[1:59:21] that you are trying to stay tight to

[1:59:26] be nourishing your own keiki with

[1:59:31] that background. They can be mixed.

[1:59:33] That whole time I was off Sorry.

[1:59:35] >> Thank you for pointing that out,

[1:59:36] because really since the 1970s our

[1:59:39] extension education programs have been

[1:59:43] supporting efforts within the Public

[1:59:45] School System and other areas of the

[1:59:47] community that are completely open to

[1:59:51] any ethnicity, yes. Thank you. >> Following up with that on

[2:00:00] your slide, the is that where this

[2:00:17] extension education comes under? What are some of the examples

[2:00:21] of where -- what that is?

[2:00:24] >> So for instance on island here we

[2:00:28] have so the partners in development

[2:00:32] programs they have I think some program

[2:00:35] on Kaua'i, the four Charter schools I

[2:00:40] had mentioned. Kanaka - listing

[2:00:46] schools -- Kekaha, Kaua'i Kini and

[2:00:54] other programs as well. Let me pull

[2:00:58] those up. The phone is on Trysen's

[2:01:07] site. So let's look at Kaua'i, just a

[2:01:24] SEC. Boys and girls club and centers

[2:01:38] Ku Mana Ikila. Kupuna -- Malama pu yea

[2:01:46] and 'aina site like Waipa. >> Clearly, it's a wide array

[2:02:03] of investment in community across

[2:02:05] the State probably that Kaua'i is

[2:02:07] just an example; right? .

[2:02:08] >> Yes, mahalo. >> Thank you.

[2:02:11] >> Any other questions? For Kamehameha

[2:02:14] Schools? If not, thank you very much.

[2:02:18] >> Mahalo Nui. >> Mahalo.

[2:02:20] >> Is there anyone in the audience

[2:02:23] wishing to testify? Again, we'll be

[2:02:24] doing the Resolution immediately

[2:02:27] following this communication. I will

[2:02:28] entertain all of the discussion in this

[2:02:30] item. We have a couple of young

[2:02:35] students here. Not sure if they want

[2:02:37] to testify or not, but I got to meet

[2:02:40] them yesterday. They are so excited to

[2:02:43] get engaged with local government and

[2:02:45] they look extremely nervous right now.

[2:02:47] That is fine, you don't have to come

[2:02:49] up. If not, I will call the meeting

[2:02:50] back to order. Any further discussion?

[2:02:54] Again, the Resolution we can have the

[2:02:56] discussion about the topic and we'll --

[2:02:59] who? I'm sorry. I will suspend the rules.

[2:03:11] >> Aloha Mai. Aloha again, Chair, and

[2:03:15] the County Council here. I really

[2:03:17] appreciate that you paused, and looked

[2:03:20] over to the folks and the keiki here,

[2:03:23] and just giving the opportunity to

[2:03:25] testify. Thank you for being here.

[2:03:30] Mahalo. My name is Roz Makaula, the

[2:03:32] Director of Government relationships at

[2:03:35] Kamehameha Schools, and it really is a

[2:03:37] privilege and an honor to be here

[2:03:42] before all of you. Aloha Mel Rapozo.

[2:03:58] Kipukai Kuali'i. Aloha Mai. Kamehameha Schools offers our

[2:04:05] very strong support for Resolution

[2:04:10] 2026-01 affirming and supporting the

[2:04:16] Kamehameha Schools' admissions policy,

[2:04:18] mission, and its contributions to the

[2:04:20] Native Hawaiian community. We mahalo

[2:04:25] Chair Rapozo, and Vice-Chair Kuali'i

[2:04:30] for introducing this Resolution,

[2:04:31] and we truly support and appreciate --

[2:04:34] we appreciate the support of the

[2:04:37] Kaua'i County Council to uphold and

[2:04:39] affirm the will of Keali'i Bernice Pauahi

[2:04:46] Paki Bishop a very powerful

[2:04:48] expression of her chiefly authority to ensure

[2:04:52] through education, generations of

[2:04:54] Native Hawaiian children will grow,

[2:04:56] they will lead, they will help restore

[2:05:01] and sustain their 'Ohana, their Ky

[2:05:08] Lulu and 'aina. Kamehameha Schools

[2:05:14] continues Pauahi's chiefly charge. We do

[2:05:17] this on our three campuses and on our

[2:05:21] 30 preschools focusing on Hawaiian

[2:05:25] culture-based education. We also

[2:05:28] extend Pauahi's reach by investing in

[2:05:32] the community, through educational

[2:05:39] programs, events, 'aina stewardship

[2:05:45] watershed protection, food system,

[2:05:46] renubble energy and all of these things

[2:05:48] not just for Native Hawaiians, but for

[2:05:51] all the people of Hawai'i. So again,

[2:05:56] mahalo for your support, and for all of

[2:05:58] the work that you do. I'm also here

[2:06:03] for questions. >> Any questions for Roz? I

[2:06:07] just want to say thank you. And again,

[2:06:10] for your patience and understanding on

[2:06:14] our technical problems. Thank you,

[2:06:16] Roz. I will give the public one more

[2:06:19] opportunity. If not, I will call the

[2:06:20] meeting back to order. Any further

[2:06:23] discussion? Ms. Cowden? >> I would like to say thank

[2:06:27] you to Kamehameha Schools for the

[2:06:31] endurance that you had since all of this

[2:06:35] time, the commitment to our Chiefess'

[2:06:41] intention and for helping our kids and

[2:06:45] I see Kamehameha Schools as an important if not the Foundation

[2:06:49] of perpetration of Hawaiian

[2:06:51] culture in our islands, and I wanted to call

[2:06:54] attention to the Charter schoolss and

[2:06:56] everything else that it is sprinkled out

[2:06:59] all over the place. But when I think

[2:07:02] about if some how Kamehameha Schools was

[2:07:10] homogenized into a way they couldn't

[2:07:12] really fit their mission and the depth

[2:07:14] at which they need to? I think it's

[2:07:16] good for kids to be in a group, where

[2:07:19] there's a concentration, where they can

[2:07:21] feel like the norm, instead of you

[2:07:24] know, a minority in their own lands. I

[2:07:27] have over the years that I have been

[2:07:29] here, I might go a First Evangelical

[2:07:35] funeral and if it's Hawaiian funeral,

[2:07:39] it's big, but when I only see a small

[2:07:42] handful of people that only have the

[2:07:46] culture so deeply imbedded even in

[2:07:49] their genes. So I think it's great for

[2:07:51] the kids to go and really be nurished

[2:07:59] in a concentration of self-empowerment

[2:08:02] and know they have a real place on the

[2:08:06] island. So it's kind of an attack on

[2:08:08] all of that to lose that anchor for any

[2:08:14] child that is wanting to paddle or to

[2:08:16] be strong with their fishing, or you

[2:08:18] know, all of these different skill sets

[2:08:20] and Aina-based education and it

[2:08:31] rips out the heart of the culture with

[2:08:38] Kuleana to support the culture. I was

[2:08:40] at an event last night and what was

[2:08:44] commented really strongly is how impacted

[2:08:47] they were when they gone across the

[2:08:49] nation in different places to be at a

[2:08:50] place where the culture was still

[2:08:52] alive. And I think for all of us, whether

[2:08:56] we share in that history we can still

[2:08:59] feel into it, you know? We still into

[2:09:04] it, and so removing this vessel that is

[2:09:07] the generator of keeping it alive

[2:09:11] and moving with real fierce and

[2:09:14] effective ability is really, really hard

[2:09:19] on even our economy, you know? I hate

[2:09:22] to be that crass, but it matters to

[2:09:25] all of us. It isn't really about

[2:09:29] civil rights issue in a school admission

[2:09:32] policy. It's about supporting and

[2:09:35] preserving what makes us Hawai'i. So I

[2:09:37] want to thank you, and I will certainly

[2:09:39] when we have our Resolution, I will be

[2:09:43] supporting it. You know, with all my

[2:09:48] mite. So we wish you well. >> Thank you. Anyone else?

[2:09:55] I'm going to take up the discussion on

[2:09:57] the Resolution here. So we can

[2:09:58] just go right through the Resolution.

[2:10:03] Mr. Kaneshiro.

[2:10:03] >> If we're going to do discuss now, I

[2:10:09] just want to say the foresight of her

[2:10:15] willing written 140 years ago and I

[2:10:18] don't think I could write something

[2:10:19] today that would be relevant in 20

[2:10:25] years probable But having thepaque on

[2:10:35] all the lives over the years it's

[2:10:40] humongous. So for me, I will call it a

[2:10:43] frivolous lawsuit. I think it's

[2:10:53] frivolous, they are suing huge schools

[2:10:55] with billions of dollars. Kamehameha

[2:10:57] Schools has provided so much opportunity in Hawai'i, and

[2:11:03] unfortunately it takes time, it takes

[2:11:04] money, it takes resources to fight it.

[2:11:07] But I do believe Kamehameha Schools

[2:11:12] will prevail and will come out on top

[2:11:13] and I will be in full support of our

[2:11:17] Resolution. >> Thank you, Ms. Holland.

[2:11:20] >> thank you. I find this legal

[2:11:23] attack on Kamehameha Schools to be

[2:11:26] pretty atrocious. To me, it's disrespectful, as Chair Rapozo

[2:11:29] said. You know, you have shared so

[2:11:31] much great information today about the

[2:11:33] many things that you give back, and you

[2:11:36] know, for me, when you said about about

[2:11:41] leveling the playing-field and the whole

[2:11:42] point is to do that. Very easy

[2:11:45] searches across the Internet, you can

[2:11:49] see how much inequality there has been

[2:11:51] over generations and Native

[2:11:54] Hawaiians faced significant disadvantages

[2:11:57] through stoyses knows higher poverty,

[2:12:04] homelessness, lower educational opportunities and attainment

[2:12:06] and even worse health outcomes. Some of

[2:12:08] these statistics which I won't read

[2:12:11] are pretty astounding. And then

[2:12:12] when you hook at when Europeans first

[2:12:15] arrived, you know, diseases that were

[2:12:20] brought syphilis, influenza, smallpox,

[2:12:21] things that never had generational

[2:12:26] immunity. 84% of Hawaiians may have died

[2:12:28] over those decades with an estimate

[2:12:31] of hundreds of thousands, reducing

[2:12:32] our population from potentially 800

[2:12:36] to over 50,000, a loss comparable to

[2:12:49] genocide and we lost so many people and

[2:12:51] 84% of Native Hawaiians and those

[2:13:02] generational descendants are not given an

[2:13:07] equal playing-field. So it's so

[2:13:10] disrespectful and obviously I support

[2:13:11] the Resolution. I just wanted to share

[2:13:13] some of that when you think about the

[2:13:16] privilege that many have come or come

[2:13:17] to Hawai'i with, and the generational

[2:13:20] white privilege that many people

[2:13:22] obtained. So then to use that, this is

[2:13:25] a direct attack on evening the playing-field. This is a

[2:13:29] direct attack on those equalitis that so many

[2:13:32] people fought for so long. Council

[2:13:33] Member Kaneshiro and I when we were in

[2:13:37] Philadelphia, spent hours going through

[2:13:38] this Museum about the history of The

[2:13:41] Constitutional Amendments that led to

[2:13:42] the emancipation of the slaves and

[2:13:45] equality and 50 years later the right

[2:13:46] for women to vote. And it's incredible

[2:13:49] how hard and how often throughout

[2:13:51] history I noticed in those timelines,

[2:13:53] how many times we took steps backwards.

[2:13:56] We passed these things and they

[2:14:00] legalize all these exemptions for

[2:14:01] slavery and that is the policy change I

[2:14:05] realizeded being involved in politic

[2:14:07] and how hard it is to get that change

[2:14:11] and you must continue to push that

[2:14:14] line. So for me, obviously it's a huge

[2:14:16] support for the Resolution and I'm

[2:14:18] thankful it was introduced and that we

[2:14:20] can help in some way to at least show

[2:14:26] our disappointment and disgust in this

[2:14:28] attack on Kamehameha Schools and this

[2:14:32] opportunity for Pauahi's trust to be

[2:14:34] respected, and to be honored, and know?

[2:14:37] I had nieces and nephews I got to help

[2:14:40] apply through the process and get

[2:14:42] accepted into Kamehameha schools and

[2:14:45] seeing the opportunities that it gave

[2:14:48] them has been incredible. So thank you

[2:14:49] for being here. Thank you for the

[2:14:51] opportunity to share this information

[2:14:52] with the public and I really hope that

[2:14:53] you are victorious in this battle.

[2:14:59] >> Mr. Bulosan. >> Thank you so much, Chair,

[2:15:04] and Vice-Chair for introducing this

[2:15:07] Resolution. I'm going to be if full

[2:15:09] support. Mahalo to everyone who showed

[2:15:11] up and testified, and is present and

[2:15:13] continue to do all the work that is

[2:15:16] being done. Past, present and future.

[2:15:26] Uluhiwa Kamehameha Schools. And ditto

[2:15:29] everything that was shared. Funny

[2:15:33] enough, I have a 21-month-old and I

[2:15:36] joke with my wife every day, oh, I

[2:15:39] can't wait to admit him to Kamehameha

[2:15:45] Schools do they pick them as early as

[2:15:51] 21 months and she is no, not going to

[2:15:56] O'ahu, he is going to stay here. I

[2:15:58] joke, because of what this Resolution

[2:16:00] mean and what Kamehameha Schools means

[2:16:01] to our community and to our family,

[2:16:05] especially to me, it's more than just

[2:16:08] education, more than just experiences,

[2:16:12] or responsibilities to a land and

[2:16:16] people, there's this book I just read

[2:16:19] to my son, it recognizes all of the

[2:16:23] indigenous people who have done impact

[2:16:25] in the world and there's several in

[2:16:27] this book. It was actually written a

[2:16:30] while ago. And one -- it was actually

[2:16:35] acknowledging Hawai'i, and the thought

[2:16:37] of legacy and trying to understand how

[2:16:41] important certain things are for us as

[2:16:44] a human race is so immeasurable, and

[2:16:48] it's very important for people who have

[2:16:50] vision like Pauahi, and for organizations, and community to

[2:16:56] continue to work together to build a

[2:16:59] better future, and work in this life to

[2:17:01] keep caring for all of the things that

[2:17:03] we care for. So it's super important

[2:17:06] for us as a body, County Council, to do

[2:17:11] this work, and this work as in this

[2:17:13] Resolution, to help make sure that we

[2:17:17] are on the right path and continue to

[2:17:19] stay on the right path. So when I this

[2:17:22] I about this situation that we're in,

[2:17:24] and I feel it as I'm part of it, not

[2:17:27] separate from what the experience is

[2:17:29] from any organization that is going

[2:17:31] through it. I think it's important

[2:17:33] wherever we can to step into these

[2:17:36] uncomfortable spaces. Whether it's an

[2:17:38] attack on our partner organizations, or

[2:17:41] direct attack on us, because it allows

[2:17:43] us to think about what matters. And

[2:17:45] work on the things that will make a

[2:17:47] better place for all of us. And so I'm

[2:17:51] super excited to pass this, because I

[2:17:54] hope it continues as a part of a

[2:17:56] movement that has already been started

[2:17:58] and restarted and continues to grow to

[2:18:03] empower people to feel inspired to feel

[2:18:08] strong and willing to do the work to

[2:18:11] make sure that we have a better place

[2:18:13] for our community. So thank you to

[2:18:15] everyone that is here and doing all of

[2:18:17] the work, and again, I will be in full

[2:18:20] support. >> Mr. Kuali'i.

[2:18:22] >> Yes, Chair. I wanted to say mahalo

[2:18:26] nui loa to you, to thank you, because

[2:18:28] you brought this forward. And then

[2:18:31] honored me by asking me to join you. I

[2:18:33] was not able to see the presentations

[2:18:36] that was here on-island, because I was

[2:18:41] away traveling and very happy that you

[2:18:43] see the presentation and inspired to do

[2:18:45] this because it's very important. It's

[2:18:47] of course, important to me, so thank

[2:18:51] you. I agree with some -- with all of

[2:18:53] the statements that were said, and I

[2:18:57] would say for sure when Kamehameha is

[2:19:01] under attack, we're all under attack,

[2:19:03] and that is our people, that is our

[2:19:05] community, and our entire state. So

[2:19:10] over 100 years of investment in our

[2:19:14] people; right? So as a class of 1980

[2:19:18] graduate, I was there for Junior high

[2:19:22] and High School from 74-86 and Kamehameha also played a role

[2:19:27] in encouraging me onto college and

[2:19:29] even supporting me while I went to

[2:19:33] College with financial aid as well. So

[2:19:36] I am a living legacy, a part of

[2:19:42] Kamehameha, and Keali'i Pauahi's legacy,

[2:19:45] and her investment in me has meant

[2:19:51] everything in my life, to my family, and

[2:19:56] to everything that I have been

[2:19:59] able to achieve because of that

[2:20:03] investment. I can't thank her enough, and

[2:20:06] thank everyone at Kamehameha enough.

[2:20:09] So please, please, stand behind

[2:20:12] Kamehameha forever.

[2:20:15] Thank you, mahalo. I don't know what

[2:20:17] is happening. >> You are making us all cry,

[2:20:19] that is what is happening. Yeah, you

[2:20:25] know, I never went to Kam Hamm had Kam

[2:20:37] Kamehameha School, but I went to a

[2:20:39] wedding there in a chapel and it was

[2:20:42] like, wow. I would encourage everyone

[2:20:49] go to KSBE . EDA . Ed.Edu and get all

[2:20:56] of the information there. It's a

[2:20:58] compelling presentation. It made me

[2:21:01] release how ignorant I am to the

[2:21:02] history of this place that I call home.

[2:21:05] In High School we learned, again

[2:21:08] Kaua'i High School, not Kamehameha. We

[2:21:10] learned and it was a chore to just

[2:21:16] remember names, Hawaiian names. I

[2:21:17] can't remember. It was very hard for

[2:21:20] me. Anyway listening to the presentation and following the

[2:21:22] timeline that was clearly put out of all

[2:21:24] of the events that had occurred, and

[2:21:28] just the struggles that had to happen

[2:21:30] for us to be where we're at so we can end

[2:21:34] up with the product of that, with

[2:21:37] someone here like Mr. Kuali'i and so many

[2:21:40] others. It just makes me try to realize

[2:21:44] why -- what would drive anyone to try

[2:21:47] to disrupt that? You know, I'm

[2:21:49] trying to be politically correct here,

[2:21:51] but it's very difficult. Because I

[2:21:55] think as was mentioned, so many

[2:21:56] opportunitieses to go sue whoever you want. You

[2:21:59] go and it's not hard anymore,

[2:22:01] especially with AI and ChatGPT you can find a

[2:22:07] defendant someplace, you know? It's just

[2:22:10] disturbing that they would choose this

[2:22:12] little island and this little state and

[2:22:13] I understand that they are looking at

[2:22:16] the past lawsuits and maybe low-hanging

[2:22:19] fruit. I know Mr. Kaneshiro said,

[2:22:22] eventually it will go away. Well, I

[2:22:24] know on the little research I have done

[2:22:26] on this law firm, they are not going to

[2:22:27] go away. They are going to fight.

[2:22:29] They are going to appeal and they are

[2:22:31] going to appeal until it gets to the

[2:22:32] U.S. Supreme Court, which would take

[2:22:35] ten years, or longer. And why? And

[2:22:38] why put the Kamehameha Schools, the

[2:22:42] Foundation, the Pauahi foundation

[2:22:44] through that all expense for what? So

[2:22:47] prove a point. That is where I struggle, and that is where I

[2:22:51] struggle to remain civil. Because I

[2:22:54] just cannot imagine anyone who would choose

[2:22:56] to do that? Are they that immune to

[2:22:59] humanity and to our culture and our --

[2:23:03] just like what -- from what I understand,

[2:23:06] one of those attorneys is actually

[2:23:08] from Hawai'i on the plaintiff's team.

[2:23:10] >> Wow. >> How do they sleep at

[2:23:13] night? Shame on them. Go pick on somebody

[2:23:16] else. So it's frustrating for me. And

[2:23:21] I'm not even Hawaiian. But I'm 6

[2:23:25] generation here and I don't even know my

[2:23:28] Portuguese culture except for the soup

[2:23:32] and bread and Catholic school. I am so

[2:23:36] -- skill still have so much more to

[2:23:38] learn about the Hawaiian -- this has

[2:23:40] helped me so much. For me, I'm trying

[2:23:44] to grapple the why of these people?

[2:23:47] Like why -- shall we just go pick on

[2:23:49] them? Make a name for ourselves, get

[2:23:55] some publicity? At what expense? Come

[2:23:57] on folks. So it's frustrating for me.

[2:24:00] For our public and especially to our

[2:24:03] young ones that I got to meet yesterday

[2:24:05] to talk about how the legislative

[2:24:07] process works. I'm so happy that you

[2:24:08] showed up today. I told them, this

[2:24:10] would be the one to come. I didn't

[2:24:12] know that the whole system was going to

[2:24:13] shut down, but that is okay. You guys

[2:24:16] stayed and you guys are here. What

[2:24:18] we're talking about today is a Resolution versus a Bill. We

[2:24:21] talked about bills yesterday about how

[2:24:23] bills become law. We never really

[2:24:25] talked about Resolutions. So a

[2:24:27] Resolution doesn't have any effect of law

[2:24:30] whatsoever. It is a policy statement

[2:24:32] of this body right here. It's a

[2:24:35] statement of this Kaua'i County Council

[2:24:36] that we want to put out together and

[2:24:38] saying this is how we feel about a

[2:24:42] specific issue. And today's issue is

[2:24:46] about supporting Kamehameha Schools

[2:24:50] admission policy, so we don't have to

[2:24:52] waste fund on defending a lawsuit for

[2:24:56] something that has been in play for so

[2:24:59] long. For all of the right reasons.

[2:25:02] And again, as I have state, yes, I'm a

[2:25:07] law-abiding citizen and sworn an oath

[2:25:09] to uphold the law, but I think the most

[2:25:11] disrespect comes because of the attack

[2:25:13] on the will of of Pauahi and it's like

[2:25:19] spitting on your grave. I know this is

[2:25:21] what you wanted on your last day you

[2:25:24] wanted to take care of your people, but,

[2:25:26] tough, because we don't think that is

[2:25:28] right -- that to me is -- anyway. I am

[2:25:32] not going read the whole

[2:25:33] Resolution, but for the sake of our young ones

[2:25:36] here today, I do want to share you

[2:25:38] just the parts that you can understand

[2:25:41] why we're doing -- oh, you have it. So

[2:25:43] you are telling me to shut up and no

[2:25:45] need to read it? That is fine.

[2:25:47] [Laughter ]That is fine. >> The two resolves. I just

[2:25:51] let me read a couple. And I will read

[2:25:55] it in Hawaiian -- no, I won't.

[2:26:02] Whereas, Princess Bernice Pauahi packi

[2:26:04] Bishop with the rapid [TKHRAO-EUFPB/]

[2:26:06] Hawaiian population due to disease as

[2:26:08] many Holland talked about cultural

[2:26:10] dictionruption and displacement from

[2:26:12] ancestral land and through her 1883

[2:26:15] will establish -- through her 1883 will

[2:26:19] established the Princess Bernice Pauahi

[2:26:22] Bishop Estate and charitable trust

[2:26:24] dedicated to founding school for Native

[2:26:26] Hawaiian children. To me, that is

[2:26:28] power. That to me is the most important thing. Whereas, new

[2:26:33] legal challenges including one

[2:26:35] brought by Students for Fair Admission

[2:26:40] threatened the 140-year-old admission miff

[2:26:43] to full full

[2:26:45] i's intent for the education of Native

[2:26:48] Hawaiian children. Whereas, the

[2:26:49] Council of the County of Kaua'i recognizes the profound

[2:26:54] cultural, educational and historical

[2:26:55] importance of the Kamehameha Schools and

[2:26:59] believes that Princess Puhaie's legacy

[2:27:01] should be [PRAO-EFRBD/] and protected for

[2:27:03] present and future generation of Native

[2:27:06] Hawaiians. And I think more than one

[2:27:08] of my colleagues mentioned about how

[2:27:11] preserving that rights and benefit for

[2:27:13] Native Hawaiians is actually beneficial

[2:27:16] to all of us. So this is the most

[2:27:18] important part of our Resolution where

[2:27:20] we said be it resolved. This is where

[2:27:23] we're telling people giving the people

[2:27:25] our statement, our policy statement, be

[2:27:29] it resolved by the Council of the

[2:27:32] County of Kaua'i, that the Council

[2:27:34] strongly supports and reaffirm the

[2:27:41] Kamehameha Schools' admissions policy,

[2:27:42] mission and its contributions to the

[2:27:44] Native Hawaiian community and the

[2:27:47] preservation of Princess Bernice Pauahi

[2:27:50] Bishop's legacy for future generation

[2:27:51] and be it further resolved that the

[2:27:54] Council urges all levels of government

[2:27:59] to respect Princess Pauahi s' charitable intent and legal and

[2:28:03] cultural Foundation of the Kamehameha

[2:28:06] schools' admissions policy. This will

[2:28:08] be sent across the nation. That is why

[2:28:11] we're here today. Without further

[2:28:12] discussion, this is the communication,

[2:28:13] the motion is to receive, all in favor

[2:28:14] say aye? >> Aye.

[2:28:17] >> Motion carried. Madam Chair, with

[2:28:21] no objection, we'll take the Resolution

[2:28:23] up next. After the Resolution, we'll

[2:28:27] take a caption break and we have

[2:28:31] people for the audit but I will take

[2:28:33] the Kaua'i Coffee issue out of order,

[2:28:35] you because I know you took a lot of

[2:28:37] work time to be here today and he we

[2:28:38] want to get you back to work. >> Chair, on page 4,

[2:28:44] Resolution No. 2026-01 Resolution supporting

[2:28:46] and reaffirming the Kamehameha

[2:28:49] Schools' admissions policy, mission and

[2:28:50] its contributions to the Native

[2:28:52] Hawaiian community.

[2:28:53] >> Move to approve. >> Second.

[2:28:55] >> Thank you. Is there anyone wishing

[2:28:57] to testify on the Resolution? Is there

[2:29:01] any further discussion? Seeing none,

[2:29:03] motion is to approve, roll call. >> Council Member Bulosan?

[2:29:05] >> Aye. >> Council Member Carvalho?

[2:29:08] >> Council Member Cowden? >> Aye.

[2:29:10] >> Council Member Holland . aye.

[2:29:11] >> Council Member Kaneshiro? >> Aye.

[2:29:13] >> Council Member Kuali'i? >> Aye.

[2:29:14] >> Council Chair Rapozo? >> Aye.

[2:29:16] >> Motion passes. >> Motion passes, Resolution

[2:29:18] passes. Thank you all. With that we'll

[2:29:20] take a ten-minute caption break.

[2:29:21] [ GAVEL ] [ GAVEL ]

[2:44:18] >> Call the meeting back to order.

[2:44:21] Members, with no objection, I will like

[2:44:23] I said earlier, we'll take the Kaua'i

[2:44:26] Coffee item up, so we can get these

[2:44:27] people back to work. So with that, can

[2:44:29] we have that item, please. >> Chair, on page 3,

[2:44:37] C-2026-08, communication from Council

[2:44:38] Chair Rapozo requesting the presence of

[2:44:43] Wayne Katayama Senior advisor Kaua'i

[2:44:46] Coffee to provide a briefing regarding

[2:44:48] the current operations of Kaua'i

[2:44:49] Coffee, as well as any future plan.

[2:44:51] >> Move to receive. >> Second.

[2:44:53] >> Thank you. With that I will call

[2:44:55] Mr. Katayama up. Just real briefly,

[2:44:58] the reason this is on the agenda is

[2:45:01] probably a couple weeks ago, social

[2:45:05] media went crazy about Kaua'i Coffee,

[2:45:09] and we had some discussions. This body

[2:45:13] had some discussion during the Planning

[2:45:16] Bill regarding the Plantation camp

[2:45:22] housing, and Numila project and talked

[2:45:24] about the importance of Kaua'i Coffee

[2:45:26] and how this housing Bill that is

[2:45:27] currently at Planning right now is

[2:45:30] going to benefit the employees of the

[2:45:32] Kaua'i Coffee. So it was quite shocking to start reading about

[2:45:36] comments that were being posted about

[2:45:39] the potential closure of Kaua'i Coffee.

[2:45:43] I did have some discussions with the

[2:45:49] landowner Representative and Kaua'i

[2:45:50] Coffee over the last months and I was

[2:45:53] aware that negotiations were happening,

[2:45:54] it was pretty evident by the testimonies that were being

[2:45:59] posted that it was starting to look like

[2:46:02] Kaua'i Coffee may go away. And that

[2:46:05] is quite disturbing, and disappointing,

[2:46:07] and so I contacted Mr. Katayama, see if

[2:46:11] he would be okay with giving us an

[2:46:14] update, more for the benefit of the

[2:46:16] community and of course, our employees, their

[2:46:18] employee, because many of them are here

[2:46:20] today. I thank you again for your

[2:46:22] patience, because of the little technical

[2:46:25] problem. We're way behind schedule.

[2:46:27] So with that, Mr. Katayama, if you

[2:46:30] could come up, I will suspend the rules

[2:46:32] and you can give us an update on what

[2:46:37] is going on, and I think for most of

[2:46:41] us, Kaua'i Coffee has been part of our

[2:46:44] island culture for a long time. And

[2:46:47] it's kind of hard to imagine that they

[2:46:53] would go away. >> Good morning, Chair Rapozo,

[2:46:57] Members of the Council. Thank you for

[2:46:59] having me here today. I'm Wayne

[2:47:02] Katayama, Senior advisor at Kaua'i

[2:47:05] Coffee, and I cannot overestimate the

[2:47:09] seriousness of why I'm here before you today.

[2:47:12] Let me put this in perspective, Kaua'i

[2:47:15] Coffee is a fully integrated premium

[2:47:21] specialty coffee company. What that

[2:47:25] means is that we grow the coffee and put

[2:47:28] it all the way to the bag, all here on

[2:47:32] the Island of Kaua'i. To do that,

[2:47:35] we have about 4 million coffee trees,

[2:47:38] and we farm about 3,000 acres. We

[2:47:44] harvest anywhere from 10 to 12 million

[2:47:47] pound of cherry coffee, which needs to

[2:47:49] be processed into about a million

[2:47:51] to 2 million pounds of green coffee.

[2:47:55] And that is all done at 'Ele'ele,

[2:47:58] and that green coffee is then roasted

[2:48:05] and put into bags that you enjoy as

[2:48:07] Kaua'i Coffee in the mornings. To do

[2:48:09] that, I think, one of the unique things

[2:48:11] that we have, we have three queue

[2:48:15] graders on Staff in the coffee roasting

[2:48:22] business, equivalent to three Ph.D.s.

[2:48:24] Today we have 141 employees that covers

[2:48:29] all of these responsibilities. And at

[2:48:34] least I haven't reflected on it,

[2:48:36] because you see people day after day every

[2:48:39] day, year in, year out, 30% of our

[2:48:42] workforce has over ten years with us. We

[2:48:46] have people with 20 years, and it's

[2:48:51] just a head-scratcher. Three people

[2:48:53] with 50 years. So they must have

[2:48:55] started when they were 3 years old because

[2:48:57] they look like they are in their 50s.

[2:49:04] And we're heavily all our employees are

[2:49:05] in the communities, you are probably

[2:49:07] related to some of them. You probably

[2:49:09] have friends with them, you know

[2:49:11] their families, and certainly you

[2:49:12] have come in contact with them I thought

[2:49:16] your community outreach. And I think

[2:49:22] that is sort of what is the

[2:49:26] seriousness of where we stand today. Now let

[2:49:29] me sort of take a little step back, and

[2:49:33] put this into historic proposal how

[2:49:37] we got here. In 2021 one of the

[2:49:43] largest beverage companies in the world

[2:49:46] purchased the coffee operations for

[2:49:49] Alexander & Baldwin. Alexander &

[2:49:51] Baldwin had been farming that land for

[2:49:54] 150 years from sugar and in the late

[2:49:59] 1980s, started to plant coffee. So we

[2:50:04] had a landowner that was very attuned

[2:50:09] to how you view the use of agricultural

[2:50:14] land and the horizon was very long and

[2:50:16] knew that once you had a crop you were

[2:50:21] in there for 50-100 years. In 2023, I

[2:50:28] would say Alexander & Baldwin, A&B,

[2:50:34] sold its land assets both here on

[2:50:36] Kaua'i, and as well on Maui, because

[2:50:40] they had changed their focus. They

[2:50:42] also had diversed a lot of their other

[2:50:46] company like Madsen, but the land on

[2:50:49] Kaua'i was solid to BBCP, and they

[2:50:56] assumed the existing lease. So 2023 to

[2:50:58] the expiration of the lease in 2026 was

[2:51:08] really two-and-a-half years. BBCP

[2:51:11] recently has publicly communicated they

[2:51:12] are not willing to renew the lease.

[2:51:16] And that is the reason why I'm here

[2:51:19] this morning before you, because all

[2:51:24] 141 of our employees will be receiving

[2:51:28] notices that they are jobs will be

[2:51:32] terminated in the next few weeks. The

[2:51:37] precise date that they will be terminated will depend on how

[2:51:43] we divest ourselves of the operation.

[2:51:47] But nonetheless, they will be given

[2:51:53] notice shortly. Now this doesn't mean

[2:51:55] that we at Kaua'i Coffee have given up,

[2:52:00] and resolve ourselves to the fact

[2:52:02] that we'll be terminating the

[2:52:03] operations at the end of March. It's not --

[2:52:06] it's just the opposite. We'll

[2:52:10] continue to seek some kind of Resolution

[2:52:14] and hopefully, that will be able to

[2:52:18] negotiate something successfully by the

[2:52:22] end of March. That however has put a

[2:52:25] strain on our 2026 crop. For our

[2:52:29] farming operations and processing

[2:52:32] operations, and the employees behind us

[2:52:35] represent all facets of our business.

[2:52:37] We have the AG component. We have the

[2:52:41] processing people, as well as the

[2:52:43] roasting and sales people all here

[2:52:45] today, as well as administrative Staff.

[2:52:48] So that is the reach and the depth of

[2:52:51] the type of employees that will be

[2:52:53] affected if we cannot resolve this

[2:52:57] successfully. Hopefully, we can do

[2:53:01] something, but again, this is to inform

[2:53:03] you that there is a Cliff, and it will

[2:53:07] happen on March 28th, 2026. You know,

[2:53:11] I thank you for your time, and for you

[2:53:14] to give me the opportunity to share

[2:53:19] with you our perspective, and what is

[2:53:22] happening and the impact to not only

[2:53:25] the operations, but also the community.

[2:53:29] In our written testimony, we have

[2:53:31] identified some of the financial

[2:53:34] impacts, as well as social/economic

[2:53:40] impacts, and we have tried to be good

[2:53:43] neighbor, you know? We had 2491 and

[2:53:47] realized that it's very important for

[2:53:50] the community to rest assured that

[2:53:54] we're responsible citizens, and so post

[2:53:58] that, we're not rainforest and free-trade certified with

[2:54:03] independent Auditors at times being more

[2:54:06] restrictive than EPA and OSHA. I think we're one of the few

[2:54:13] farms in the State that have both.

[2:54:20] Unfortunately, I'm unable to discuss

[2:54:23] specific terms and conditions of the

[2:54:27] lease, nor I'm unavailable to speculate

[2:54:32] on any post-March 28th activities.

[2:54:34] Again, I thank you, and I'm available

[2:54:37] for any questions. Thank you, Chair.

[2:54:41] >> Ms. Cowden. >> Thank you for coming, and I

[2:54:45] appreciate the presence of your team

[2:54:47] here, too, because it's important to

[2:54:48] speak to all of you. I have a couple

[2:54:51] of questions you can tell me if you can

[2:54:53] answer them or not? What I read is the

[2:54:57] press was that they are intending to

[2:55:01] continue the coffee just not without

[2:55:03] your Administration, is that -- did I

[2:55:06] read that correctly? >> That has been shared both

[2:55:10] publicly and to us directly that they

[2:55:15] would want to continue coffee operations

[2:55:20] post our exit. May I share something

[2:55:23] with you, not to get too academic? But

[2:55:30] becoming fully integrated specialty

[2:55:33] coffee really required three key

[2:55:37] elements, and it took over 20 years to sort

[2:55:41] of get it to work. One is again I shared

[2:55:45] with you the vision of the

[2:55:46] agricultural land. It's not something that

[2:55:48] you can turn over quickly or change in

[2:55:52] very short periods of time. The

[2:55:55] second is availability of resources, both

[2:55:59] physical resources, the utilities

[2:56:03] required to run the farm, and the

[2:56:06] processing in terms of water, electricity, is huge. You also

[2:56:15] need the financial resources, the

[2:56:18] funding of the equipment, the crop, field

[2:56:24] activities that needed to really start

[2:56:27] in December. You will not get a crop

[2:56:34] until September/October,/November,

[2:56:35] December, middle in January, February

[2:56:36] and probably sell it in March through

[2:56:41] the next December. So you are talking

[2:56:46] financial security of at least 18

[2:56:51] months in turning initially. And

[2:56:54] lastly, you need the intellectual

[2:56:58] capital. Alexander & Baldwin, or A&B,

[2:57:02] very comfortable with long agricultural

[2:57:08] visions, Matzyama beverage, one of the

[2:57:11] largest coffee companies in the world

[2:57:15] very comfortable with vesting in brand

[2:57:19] development. You know, in terms of

[2:57:25] roasting coffee, in terms of investing

[2:57:28] in the market place, very comfortable

[2:57:30] doing that. So it takes those sort of

[2:57:34] three -- two elements to come together

[2:57:40] to help launch the brand development

[2:57:43] and get coffee, Kaua'i Coffee where it

[2:57:45] is today. The last and the most

[2:57:50] important is community support. We

[2:57:52] have from you, from our neighbors in

[2:57:58] 'Ele'ele and Kalaheo. That is a

[2:58:02] critical element of why we're here

[2:58:04] today is that our neighbors allow us to

[2:58:08] be here and we're very thankful for

[2:58:11] that, and we do not take that responsibility lightly.

[2:58:15] >> I have another question. Sorry to

[2:58:21] ask about the future, but have they

[2:58:24] shown any intention by coming and

[2:58:27] looking at the equipment, the land, is

[2:58:30] there -- because I'm looking at all of

[2:58:33] these people that I want to keep their

[2:58:35] jobs and we're sure proud of Kaua'i

[2:58:37] Coffee and you are a star of Hawai'i/Kaua'i on the hill in

[2:58:46] Washington, D.C.. Has there been

[2:58:47] outreach to the team? Is there any

[2:58:49] sort of look of intention for forward

[2:58:52] that we're going to keep our coffee?

[2:58:55] >> There has been visits by their teams

[2:59:01] , but in terms of the process, it seem

[2:59:06] that it's very superficial, given the

[2:59:07] length of time there is available.

[2:59:11] Normally these things start a lot

[2:59:13] earlier. Because there's a lot of

[2:59:16] details to comprehend and there's the

[2:59:18] drafting of the documents that go along

[2:59:21] with this. And here we're less than

[2:59:26] 100 days, and none of the details have

[2:59:29] been addressed. I mean, it's sort of

[2:59:32] very superficial high-level and again,

[2:59:37] maintaining the specialty premium

[2:59:39] coffee business is a challenge. >> I have one more question.

[2:59:42] Is that okay? I don't mean to

[2:59:45] dominate. I'm concerned about the surface

[2:59:48] water that the 100 what sound like 155

[2:59:51] years since Alexander & Baldwin took it

[2:59:55] away. Surface water on management on

[2:59:58] Kaua'i coming -- we're talking about

[3:00:01] our Hawaiian Kingdom times they

[3:00:06] were very good request surface water and

[3:00:11] plantations were very good with surface

[3:00:13] water. Typically that is not the

[3:00:16] strength of equity capital investor.

[3:00:19] So the surface water management, how is

[3:00:23] that handled now and how will it be

[3:00:26] handed out because surface water is

[3:00:27] critical in terms of how we move

[3:00:29] forward with our island? >> We have been very fortunate

[3:00:35] to inherit a small portion of the

[3:00:38] sugar water system and sugar water

[3:00:40] system s are huge. For our 3,000 acres

[3:00:43] of coffee we have two primary

[3:00:46] water sources one from Alexander

[3:00:49] reservoir and the other from Hanapepe

[3:00:53] river. Our storage capacity is in six

[3:00:57] reservoirs, four of which are regulated.

[3:01:00] And all of those require certain amount

[3:01:07] of attention to manage. Typically

[3:01:11] flows from Alexander between 6-8

[3:01:13] million gallons per day when there is

[3:01:17] water in the reservoir and all of that

[3:01:20] has to be managed. Our earlier speak

[3:01:22] from Kamehameha Schools it's key

[3:01:24] that there has been an effort to restore

[3:01:27] Mauka to Makai flows, but keeping the

[3:01:31] water up on the land and dispersing it

[3:01:35] on the land is far more efficient and

[3:01:40] recharging aquifers. And if we would

[3:01:42] like to maintain our aquifer system, I

[3:01:47] think spraying water over 3,000 acres

[3:01:50] is much more preferable than to have it

[3:01:54] run into the water, ocean. >> So you guys have being

[3:02:00] managing your water system, and then I

[3:02:02] know that your background is in sugar.

[3:02:04] So you really understand this deeply.

[3:02:07] Have with your potential leaving the

[3:02:12] land in less than 100 days is there any

[3:02:15] dialogue going on for passing that

[3:02:18] knowledge along for the water system?

[3:02:22] Is that being handled? >> Well, generally that would

[3:02:26] take place as part of the transition

[3:02:29] process. There are certain things that

[3:02:31] normally take place. There's an asset

[3:02:35] purchase agreement. There's a service

[3:02:37] agreement. There's an employee assumption agreement that if

[3:02:43] you are hiring Kaua'i Coffee employees,

[3:02:46] what terms and conditions? Today

[3:02:49] fortunate we have the iWu, which the

[3:02:52] majority of our workforce are members are.

[3:02:55] There needs to be an agreement what

[3:03:00] is the assumption on the unionized

[3:03:03] labor force? All of those

[3:03:06] conversations have not taken place in any great

[3:03:09] detail. >> Okay.

[3:03:11] >> Thank you. Any other questions? I

[3:03:16] just have I guess for me, for clarification, No. 1, Kaua'i

[3:03:21] Coffee is the largest coffee grower in

[3:03:23] the United States, correct?

[3:03:24] >> That is true, yes. >> Which is significant. I

[3:03:28] mean, there's a lot of coffee

[3:03:30] companies in the world, in the country, and

[3:03:33] so back in 2011, I remember when

[3:03:40] massimo Zen yety, there were a lot of

[3:03:43] skeptics including myself, here we go,

[3:03:45] here comes a mainland company coming

[3:03:47] to take over Kaua'i Coffee, a nice

[3:03:50] local coffee company. I remember reading

[3:03:54] all of the promises of how this would

[3:03:56] benefit the community, and again, I was

[3:03:59] very skeptical. Well, fast-forward

[3:04:02] to 2026 and we find out that was an

[3:04:06] amazing purchase, and, in fact, they

[3:04:11] developed the brand now where Kaua'i

[3:04:14] Coffee is all across the world, which

[3:04:17] would never have been possible if that sale

[3:04:22] never occurred. My question is with

[3:04:28] massimo -- how do you pronounce that.

[3:04:34] >> Massimo Zen yety. >> Italian name.

[3:04:36] >> I thought it was Portuguese. That

[3:04:40] came, this global distribution system

[3:04:42] that allowed for Kaua'i Coffee now to

[3:04:46] be sold across the globe, and, in fact

[3:04:48] if I'm not mistaken, I could be wrong,

[3:04:52] correct me if I'm wrong, isn't our

[3:04:57] coffee sales abroad more than -- I

[3:04:59] heard I could be wrong -- no? >> I need to get back --

[3:05:03] >> I read that somewhere. But the

[3:05:10] point is let's say I was interested in

[3:05:13] purchasing the farm. Let's say Mel

[3:05:14] Rapozo all of a sudden wants to be a

[3:05:16] coffee guy and I find some investors

[3:05:18] and we buy the land, and we work out

[3:05:22] the agreements. What will be missing

[3:05:25] is this global distribution network

[3:05:30] that is required to sustain the business; right? If not for

[3:05:37] massimo Zenetty's purchase of the

[3:05:39] property, that that business, of Kaua'i

[3:05:44] Coffee in 2011, do you think we would be

[3:05:46] where we're at with Kaua'i Coffee?

[3:05:48] >> I was there during that purchase

[3:05:50] and part of that purchase and again, of

[3:05:53] the three critical elements, Alexander

[3:05:55] & Baldwin had half of it, massimo Zen

[3:06:01] yety had the other half and together

[3:06:05] they had the wherewithal to develop a

[3:06:09] fully integrated coffee company. And

[3:06:10] generally speaking, you know, you could

[3:06:13] have people that are good farmers. You

[3:06:14] could have people that are good processers, and you could have

[3:06:18] people that are good marketers. But

[3:06:23] rarely do you have it on Kaua'i in one

[3:06:25] place that you have it all. And look at

[3:06:28] the number of different skills that

[3:06:31] is required to maintain that. I

[3:06:38] think that was the accomplishment of all

[3:06:45] of these partnerships, and literally

[3:06:49] they were partnerships.

[3:06:53] >> I have two more questions. >> Go ahead.

[3:06:57] >> Is there a pathway for Kaua'i

[3:07:01] Coffee to survive off of that property?

[3:07:03] Is there going to be any kind of way

[3:07:05] you can feather on to new land? I know

[3:07:11] it take a while to grow new plants,

[3:07:15] probably, two, three fours year for

[3:07:16] maturity. >> So get a crop -- assuming

[3:07:20] that you had a good varietal selected to

[3:07:25] propagate, to plant it, and to have it

[3:07:27] mature at least five years. >> But we have a good crop.

[3:07:30] So we can just move that crop; right?

[3:07:32] But it would take five years. In

[3:07:36] terms of the variety?

[3:07:37] >> You would probably because of the

[3:07:43] issues with CBB and coffee leaf and

[3:07:46] brewers you would probably want to

[3:07:48] start in a fresh area with a fresh

[3:07:51] coffee plantings. You don't want to

[3:07:54] carry over. >> We would have the seeds

[3:07:56] though. We know what variety we want.

[3:08:00] >> We'll probably want to diversify

[3:08:02] even more. Currently we have five

[3:08:05] different coffee varieties that services maybe about 20

[3:08:12] different coffee profileses that we

[3:08:14] currently offer. We probably want to

[3:08:15] expand that by different varietals

[3:08:18] >> But your market could manage that

[3:08:22] transition if it's abrupt, like the end

[3:08:24] of March? >> That is correct.

[3:08:27] >> Then the other question is probably

[3:08:29] hard to answer, but you're here right

[3:08:31] now. How can we help? >> Hopefully by having this

[3:08:43] conversation, that we can create a

[3:08:45] pathway that is a little longer than

[3:08:48] March. It will help us better transition.

[3:08:50] >> Do you have land that you can move

[3:08:53] to? >> We'll certainly -- if we

[3:08:57] had the runway to do that, we'll

[3:09:01] aggressively start seek something

[3:09:04] alternative. >> Because there seems like

[3:09:07] there's plenty of available farmland on

[3:09:10] the West side

[3:09:12] >> It's consistent with the Community

[3:09:16] Plans there. >> So I don't know if we can

[3:09:19] do a Resolution or anything like

[3:09:22] that? This is business. I'm happy to make

[3:09:24] some phone calls, but I'm sure a lot

[3:09:26] of those phone calls have been

[3:09:29] made. But how can we get them to give you

[3:09:31] a few more years? Or is there

[3:09:34] certain amount of acreage? We can talk about

[3:09:35] that later, but I would like to know

[3:09:38] if you had -- if you let go of x

[3:09:41] amount of acres, X amounts of acres and

[3:09:50] to look at the machinery and

[3:09:52] communicating with your team? Because there are

[3:09:54] jobs out there; right? So I'm sure

[3:09:55] that people will get other jobs and once

[3:09:58] they are gone, it's hard to bring these

[3:10:02] highly-skilled people back. So I want

[3:10:07] to help you survive. >> Can we get back to you on

[3:10:10] that? >> Okay.

[3:10:11] >> Let us think about that. >> So just clarifying real

[3:10:17] quick, 4 million trees, that is a lot

[3:10:22] of tree. If you were to -- and I think I

[3:10:26] heard you say, it would be better to

[3:10:27] start fresh and plant new trees. I

[3:10:30] don't know if you could plant 4

[3:10:33] million trees, but whatever the case

[3:10:34] may be, you wouldn't require 141

[3:10:37] employees during that period; right?

[3:10:42] I mean, you would lose until your crops

[3:10:45] are ready, your crop of coffee is ready

[3:10:48] to pick and roast and my concern is

[3:10:53] that if there's a break in this lease,

[3:10:55] and you go and plant, and acquire the

[3:10:58] land, and prep the land, and there's

[3:11:01] going to be a period of time, where

[3:11:03] some of these employees are going to be

[3:11:05] unemployed. >> We have coffee inventory.

[3:11:10] The coffee that we harvested in

[3:11:14] 2025 has not yet been completely milled.

[3:11:17] So we have inventory that will carry

[3:11:22] us 18-24 months.

[3:11:23] >> Right. But you wouldn't have --

[3:11:27] where is all your equipment going to

[3:11:29] be; right? Obviously you are going to

[3:11:32] lose this land; right? >> If we're restoring

[3:11:36] orchards it will still need the spray

[3:11:40] tractors, everybody, but the harvesters.

[3:11:42] >> But you would -- this would be

[3:11:45] dependent on you finding land and

[3:11:48] getting your equipment and your buildings set up to do all of

[3:11:51] these activities; right?

[3:11:53] >> Yes. >> I have a follow-up.

[3:11:56] >> That was going to be my follow-up

[3:11:58] question, having land is just one small

[3:11:59] piece of the puzzle. You can plant as

[3:12:02] many trees as you want and harvest, but

[3:12:04] you need a whole entire facility to

[3:12:07] process and distribute. So that takes

[3:12:09] way longer than a year or two years or

[3:12:13] three years to even try to do if you

[3:12:14] are doing it from scratch. >> If you looking on the West

[3:12:23] side with Gay and Robinson, DHHL,

[3:12:29] this are agricultural suited lands with

[3:12:34] sufficient water supply that look

[3:12:37] pretty good actually. >> So your facility now that

[3:12:40] you require for all of the -- I

[3:12:43] don't know coffee, but that -- are you

[3:12:46] picking up your equipment here and moving

[3:12:48] it to the new site, is that how it

[3:12:52] would work? If that happens then so

[3:12:53] much for the new owners to be carrying

[3:12:56] on with the coffee business like they

[3:12:58] are saying they are?

[3:13:00] >> That is part of the -- there's a

[3:13:03] Section of our lease with conditions on

[3:13:08] termination. And that is the reason

[3:13:11] why there needs to be a serious discussion on asset purchase

[3:13:17] agreement, if not, we're responsible for

[3:13:21] moving the equipment that we want to

[3:13:24] keep. Anything that is left behind

[3:13:27] would be considered abandoned.

[3:13:29] >> So Kaua'i Coffee is going to have

[3:13:31] to make a decision. >> Yes.

[3:13:36] >> Council Member Cowden. >> So this coffee inventory

[3:13:40] that you have it's not roasted?

[3:13:45] >> It's all in green form. >> Okay, if you have to leave

[3:13:47] at the end of the March, how are you

[3:13:49] going to process it anyway?

[3:13:55] >> There's several outlets and we can

[3:13:57] lease the current. >> You could lease?

[3:14:01] >> That would be a discussion, you

[3:14:02] know? >> Okay.

[3:14:03] >> If that doesn't work we'll have to

[3:14:06] look for a cold packer somewhere else.

[3:14:09] >> Okay. >> There are a lot of

[3:14:13] different permutations to this, and

[3:14:15] because the situation is so fluid, the

[3:14:19] ideal situation would be we'll get an

[3:14:24] off-ramp of two years or more. So we

[3:14:28] can sort of craft a win-win situation.

[3:14:30] >> Okay. So you have -- you could

[3:14:34] possibly do that. I'll just say for

[3:14:36] the record, right after the property

[3:14:37] was bought, I was able to go and speak

[3:14:42] with Chad Brew, two days later for a

[3:14:44] couple of hours and Kaua'i Coffee was

[3:14:46] one of the first things I brought up.

[3:14:48] So I was really relieved to hear there

[3:14:51] was a commitment to keeping that going,

[3:14:54] and that seemed like something that was

[3:14:59] very Foundational, because removing all

[3:15:01] of that coffee, all that, you know?

[3:15:03] It's very expensive and I believe that

[3:15:06] is all important ag land and correct me

[3:15:09] if I'm wrong, that can't get turn into

[3:15:20] another Kukui'ula, is that correct?

[3:15:22] >> There's only a sliver of that land

[3:15:26] that is ial. It would require rezoning, but the fact of the

[3:15:29] matter is it could be.

[3:15:31] >> We don't have the roads and the

[3:15:32] water and everything else >> Neither did Kukui'ula when

[3:15:36] they started.

[3:15:38] >> Okay. >> You know? I'm hoping that

[3:15:42] is not the intent. Because that would

[3:15:46] be sad. If that is the intent, again,

[3:15:49] back to the disrespect that we talked

[3:15:52] about earlier. That would be sad for

[3:15:54] these guys to come in, purchase the

[3:15:56] land, talk about preserving the AG,

[3:15:58] and then turn around and I'm not saying

[3:16:03] that is what they are doing, but I'm

[3:16:04] saying that is not all important ag

[3:16:07] land that you cannot farm. There's a

[3:16:09] sliver, and I don't want to put you on the

[3:16:11] spot, because you guys are in

[3:16:14] whatever negotiations you have. I'm

[3:16:15] just saying in my research, there's that

[3:16:18] sliver that is important ag land. So

[3:16:20] that has to remain in farm, in AG, but

[3:16:25] all the rest, that would be terrible to

[3:16:27] get rid of Kaua'i Coffee to put up

[3:16:31] another subdivision. Whether or not it

[3:16:33] would even be passed through the

[3:16:36] Planning and County Council at the time? I

[3:16:38] don't know, but if that is the

[3:16:40] intent, that is disappointing. That is

[3:16:46] disappointing. You know, McDonalds

[3:16:47] over here, I don't know if they own the

[3:16:49] land. Let's say whoever owns that land

[3:16:53] kicks out McDonalds and I go in to open

[3:16:56] up a Hamburger store. I can take over

[3:16:59] the place and take over the building

[3:17:01] and they left back their stoves and

[3:17:04] microwaves I will keep that, but it's

[3:17:05] not a McDonalds. It's not going to be

[3:17:08] a McDonalds. It's going to be Mel's,

[3:17:11] and Hamburger is not going to taste of

[3:17:13] the same. It probably tastes better,

[3:17:15] but my point is the marketing of

[3:17:20] McDonalds is what makes it successful.

[3:17:29] Cheeseburger is better than McDonalds.

[3:17:31] So the global distribution network is

[3:17:37] what the value is at. Who decides to

[3:17:40] buy the land it won't be Kaua'i Coffee.

[3:17:45] It just wouldn't be. Ms. Holland.

[3:17:47] >> I just wanted to follow-up on that.

[3:17:49] Correct me if I'm wrong, aren't there

[3:17:53] some accusations that they actually

[3:17:55] intend to continue to brand under your

[3:17:57] logo and your information even if they

[3:17:59] do kick you guys out? Can you clarify

[3:18:02] that? >> There's an option to buy

[3:18:05] the brand. >> Oh. so they could.

[3:18:08] >> >> There needs to be a brand

[3:18:13] evaluation. That will require capital

[3:18:15] on their part, just for the branding,

[3:18:17] then they have to buy the inventory,

[3:18:19] then they have to buy the equipment.

[3:18:24] And that process really should have

[3:18:27] started months ago, if that were their

[3:18:30] intent. >> Thank you

[3:18:35] >> Thank you. >> Any other questions? If

[3:18:41] not, thank you, sir.

[3:18:42] >> Thank you very much, Chair, for us

[3:18:47] to really present our view of the

[3:18:51] outcome, and the next 90 days that are

[3:18:54] going to be critical. I would like to

[3:18:56] thank the employees for spending their

[3:18:58] day with us today. Thank you very much.

[3:19:00] >> Well, that says a lot when you have

[3:19:03] that many employees show up, you know?

[3:19:09] And I'm on social media a lot, but I

[3:19:12] also recognize that it's not the most

[3:19:15] accurate source of information. And

[3:19:17] that is why I wanted to hear it today,

[3:19:20] so we could get it from Kaua'i Coffee

[3:19:23] and understand from the people and

[3:19:25] families. I just saw people in the

[3:19:28] hallway I have known a long time and

[3:19:33] not aware that they worked at Kaua'i

[3:19:35] Coffee. I looked at your website

[3:19:37] because I couldn't remember massimo's

[3:19:40] name and what do you call it? Roasting

[3:19:47] -- what is roast masters. They are

[3:19:50] water? >> Cube rators. That is like

[3:19:55] having a Ph.D. in coffee.

[3:19:56] >> I look at the pictures on the

[3:20:00] website and they are young local people

[3:20:02] from here, that are roast Masters.

[3:20:05] It's such a -- it's hard to imagine

[3:20:09] Kaua'i Coffee gone. It's like, Ishihara's. You know? You

[3:20:17] just get so used to it, it's part of the

[3:20:20] island. It's part of our culture. It's

[3:20:22] part of our life. And then poof. It's

[3:20:26] gone. >> I think that's the

[3:20:30] seriousness of it, because to have it

[3:20:32] developed to where we're today, it was a

[3:20:37] very long journey. Again, with all of

[3:20:40] the key elements that needed to be put

[3:20:44] together and to have it dissolved

[3:20:48] artificially, I think, that is the issue, and

[3:20:55] the seriousness of it. Thank you,

[3:20:57] Chair. Thank you for your questions.

[3:21:01] >> Thank you. Anyone in the audience

[3:21:03] wishing to testify? No? I will call the

[3:21:16] meeting back to order. Any further

[3:21:19] discussion? Ms. Cowden. >> Well, I really want to make

[3:21:22] sure we find a way to have a solution,

[3:21:29] because the legacy of what Kaua'i

[3:21:30] Coffee has become, you know? That is

[3:21:32] something that we have struggled to

[3:21:34] create, you know, for economic diversity

[3:21:39] and agriculture. You know, it's

[3:21:41] deeply disappointing for Kaua'i to

[3:21:44] endure this potential loss of -- it's been

[3:21:46] a relatively new path forward in

[3:21:49] agriculture relative to sugar. That

[3:21:51] gives us hope for not having overdependence on the visitor

[3:21:55] industry. I think Kaua'i Coffee has done

[3:21:58] a very good job of things, like,

[3:22:03] having an ecotourism piece there. It's

[3:22:05] educational. It's a really good

[3:22:08] presentation for what we do have. I

[3:22:11] also appreciate the many different

[3:22:14] efforts, like, working with Kaua'i

[3:22:16] community correctional center to be

[3:22:20] offering new potential for people who

[3:22:23] maybe made mistakes and have been

[3:22:27] incarcerated. There's many different

[3:22:28] ways that Kaua'i coffee has been a

[3:22:32] very good community partner. I don't

[3:22:35] see benefit for our island, especially

[3:22:37] -- you know, I don't mean to overemphasize the legacy of the

[3:22:44] water distribution system, the

[3:22:47] canals, and the reservoirs. We need to

[3:22:49] really keep that going, you know? The

[3:22:51] island could change in so many different

[3:22:54] ways. The world economy could change in

[3:22:56] so many different ways. And having

[3:22:58] that knowledge that is really

[3:23:00] important about how to manage the land,

[3:23:02] how to manage the water is essential.

[3:23:04] And then another thing that we look

[3:23:07] at since the loss of different

[3:23:10] agricultural products is the Fire

[3:23:12] hazards that comes with unmanaged land.

[3:23:16] And so we look hard to find agricultural tenants on the

[3:23:24] land, if they don't own the land, to be

[3:23:27] there. So it keeps us all safe in many

[3:23:30] ways. So I just wanted to thank

[3:23:32] everybody in this room who does the job that

[3:23:35] you do, and to recognize the

[3:23:38] contribution that you make to the island as a

[3:23:43] whole. I hope very much that we can find

[3:23:45] a way -- I'm hoping that BBCP is

[3:23:51] listening and that somehow they are just

[3:23:54] playing a hard game of cards because I

[3:23:56] can't imagine if they are really

[3:23:58] wanting to take over the coffee business

[3:24:02] that aren't more deeply engaged in

[3:24:03] making sure that they understand the

[3:24:05] water systems and make sure that they

[3:24:07] understand how to hang on to the team

[3:24:10] that is creating this fine product. So

[3:24:16] I haven't tried to step out of line and

[3:24:18] insert myself in this. I wouldn't do

[3:24:21] that without an invitation to do so

[3:24:23] much and I don't know what I can

[3:24:24] create, but I will try my hardest and

[3:24:27] sometimes I'm pretty surprised that I'm

[3:24:30] sometimes able to shove something some

[3:24:31] way. I want you to know I'm right

[3:24:35] there with you and we can talk about

[3:24:37] that. But I would like to see -- I

[3:24:39] would like to see our government do our

[3:24:43] very best to keep you guys solid.

[3:24:46] Because we have your back and want to

[3:24:47] have your back and we need you, and we

[3:24:49] appreciate you, and thank you all for

[3:24:52] what you have done to create a product

[3:24:55] that is really outstanding, and across

[3:24:57] the nation, and I guess in the world.

[3:25:01] So thank you. >> Thank you. Anyone else?

[3:25:07] Mr. Kaneshiro.

[3:25:09] >> I have a lot to say, but it will

[3:25:12] probably be jumbled. So I will keep it

[3:25:14] shorter. I don't need to hear people

[3:25:16] come and testify. I know exactly where

[3:25:18] they all stand already. I appreciate

[3:25:20] them coming out and taking time to be

[3:25:25] here. You know, Kaua'i Coffee is

[3:25:27] exactly what I ran my campaign on

[3:25:29] pretty much, you know? I said I'm

[3:25:35] probusiness, proAG and that is exactly

[3:25:39] what they do. More recently people

[3:25:40] have asked how do we keep AG sustainable? My answer is that

[3:25:44] we have to expand and we have to sell

[3:25:46] our AG outside of Kaua'i, you know?

[3:25:48] During COVID we realize that Kaua'i

[3:25:50] cannot support itself. We have have

[3:25:53] to reach out, outer islands and reach

[3:25:56] the world and Kaua'i Coffee does just

[3:26:00] that, marketing outside of Kaua'i and

[3:26:01] doing a good job. So they have all of

[3:26:04] the plusses that I ran on. They

[3:26:07] provide a great economic impact to the

[3:26:10] island. They provide jobs. They are

[3:26:12] taking care of a large area of land,

[3:26:15] AG land, which I think is precious to us

[3:26:17] and we don't want to see developed.

[3:26:20] You know, they provide a visitor

[3:26:24] attraction. And so for me, I don't know what

[3:26:26] the solution is. You know, I would

[3:26:30] love to see Kaua'i Coffee stay there. I

[3:26:32] don't know what the intention of the

[3:26:36] landlord is, so it's hard to say what

[3:26:38] direction this is going to go. But I do

[3:26:41] hope that they find an amicable

[3:26:43] solution and understand this is -- it's not

[3:26:45] so easy to up and get rid of Kaua'i

[3:26:48] Coffee and think they are going to run a

[3:26:50] coffee company that is exactly the

[3:26:52] same, or maybe a boutique coffee company

[3:26:54] or something. It's not that easy.

[3:26:57] Why do that? You know? At the end of

[3:26:59] the day, with you have an operation that

[3:27:02] is doing great, makes Kaua'i look

[3:27:04] great. You know, why would you want to

[3:27:08] interfere with that? I bring Kaua'i

[3:27:11] Coffee, I have a friend in Las Vegas a

[3:27:14] Council Member in Vegas and I'm always

[3:27:20] bringing him Kaua'i Coffee. We have an

[3:27:22] upcoming NACo event and it was sad I

[3:27:25] said I have to the store stockpiling

[3:27:28] because I don't know what is going to

[3:27:32] happen. Any time Senate Dru Kanaha and

[3:27:39] saying who has better coffee? Kaua'i

[3:27:42] Coffee is the largest coffee Plantation

[3:27:43] in the US, you know? So it is a legacy

[3:27:49] and something to be proud of. I want

[3:27:51] to see it continue. So anything that I

[3:27:53] can do to help support you guys, I'm

[3:27:57] all there. I will say, you know, for

[3:28:00] landowners that have operations like

[3:28:04] yours, future development other things

[3:28:05] that they are trying do is dependent on

[3:28:09] how they treat their tenants, what they

[3:28:11] are doing with their land? And you

[3:28:14] know, I'm just putting it out there, it

[3:28:16] does affect and will affect what they

[3:28:18] do in the future and how they will be

[3:28:20] treated in the future, you know? You

[3:28:22] encourage a good company like Kaua'i

[3:28:24] Coffee, it's a lot easier for people to

[3:28:26] approve things . You kick them out and

[3:28:31] create destruction, it's harder to

[3:28:33] approve things. That is just what I

[3:28:35] have to say. It's pretty sad to hear.

[3:28:38] It's been sad. I have a lot of close

[3:28:41] friends that work there. And it's

[3:28:44] definitely you look at our audit. They

[3:28:46] talk about agriculture, Kaua'i Coffee

[3:28:48] is in there, you know? As one of the

[3:28:51] bright shining stars for agriculture on

[3:28:54] Kaua'i. So I just really hope for some

[3:28:58] type of amicable solution, or you know,

[3:29:00] I wish they came with a plan that said

[3:29:03] we're going make it better and help

[3:29:05] provide more resources and help make

[3:29:08] Kaua'i Coffee even bigger. So I don't

[3:29:09] see that and it's pretty disheartening.

[3:29:12] That is my comments. >> Thank you. Mr. Bulosan.

[3:29:18] >> I want to echo everything that

[3:29:21] Council Member Kaneshiro shared,

[3:29:23] especially whether I first thought

[3:29:25] about running, With businesses and local

[3:29:33] people, it's hard to look into the crowd and

[3:29:35] not be super mad and cry. So think

[3:29:38] about what is happening to our community,

[3:29:40] and the product that has been a staple

[3:29:44] to generations of people that have

[3:29:48] experienced coffee. Funny story, I

[3:29:50] never drank coffee until two years ago,

[3:29:52] so I never understand why coffee was

[3:29:54] important, but now I know. Having a

[3:29:57] 21-month-old, I take -- [laughter ]A quad shot of

[3:30:03] espresso every day now and I get it.

[3:30:06] Get coffee to everybody, especially

[3:30:07] parents. I don't know how you function or

[3:30:10] even be a nice person until you have

[3:30:13] coffee. So like in reality, what

[3:30:15] happens to Kaua'i Coffee is like our

[3:30:17] mental health is going to go really bad.

[3:30:20] [Laughter ]Around the world, because if

[3:30:22] you think about the experiences that

[3:30:25] people get; right? Like I literally

[3:30:27] went to the gift shop yesterday, what

[3:30:30] is today? Monday. And you just see

[3:30:33] the people coming out of there super

[3:30:38] happy and super stoked and I had my

[3:30:41] latte that changed my life for the next

[3:30:45] three hours. For my wife and son I'm

[3:30:50] not a grumpy guy, because I'm not that

[3:30:52] old. It's like the earlier conversations, you know?

[3:30:54] Again, thank you to Chair for putting this

[3:30:57] briefing, and for Wayne for sharing with

[3:31:01] us the actual details and everyone for

[3:31:06] being here. Just like the earlier

[3:31:09] conversations that we're having, like,

[3:31:12] we have to stand up. Like this makes

[3:31:16] no sense. It just feels like we're

[3:31:18] starting this year with just a bunch of

[3:31:22] attacks on our people, on our lands,

[3:31:25] and it's like I just want to stand up

[3:31:27] and not feel this way. Can we just be

[3:31:32] in the space? Just make a living and

[3:31:35] do good things, save lives, save

[3:31:39] people's mental health and just be us,

[3:31:40] you know? That is what I hope as we

[3:31:44] deliberate and have these conversations, as everything

[3:31:48] that is going on in the back-end and

[3:31:52] the front-end, I just want everyone

[3:31:54] to know that in this corner, Kaua'i

[3:31:57] Coffee everyone related and all of the

[3:32:00] organizations and the impact that you

[3:32:02] guys do, we are -- I am, I am right

[3:32:06] there with you guys. And any leverage

[3:32:08] that I can do to help make sure that we

[3:32:14] continue what you are going because you

[3:32:15] are exactly -- you are doing exactly

[3:32:19] what our community needs. Your business is exactly what we

[3:32:23] need right now to be successful, and

[3:32:27] continue to make the impact. So it makes

[3:32:30] absolutely no sense why we're in this

[3:32:33] situation with you guys, and I just

[3:32:37] hope as we always hope; right? People

[3:32:42] do good, businesses do good. Organizations can change their

[3:32:45] minds and I hope minds get changed, I

[3:32:49] hope. Perspectives get incorporated,

[3:32:52] and that we keep going on a better path.

[3:32:55] Thank you again, Chair, for putting

[3:33:00] this briefing, and thank you all for

[3:33:02] being here.

[3:33:02] >> Thank you. Ms. Holland. >> Thank you, Chair. This is

[3:33:07] another pretty upsetting topic. I also

[3:33:09] echo a lot of what Council Member

[3:33:11] Kaneshiro said. You know, we do need

[3:33:15] more types of this agriculture. I want to

[3:33:20] commend also how much improvement in

[3:33:22] land management, and the incredible

[3:33:23] benefits that you guys have taken up

[3:33:25] over the last ten years. You know, 2491

[3:33:29] was brought up, and you guys were

[3:33:31] caught up in that. Actually

[3:33:34] unintentionally. But the immediate response to

[3:33:36] doing better, and to transitioning

[3:33:39] into such -- so many changes that were

[3:33:42] moved to move away from restricted use

[3:33:45] pesticides and do what you could do was

[3:33:47] an incredible showing of how much you

[3:33:49] are imbedded in this community. I have

[3:33:51] been so thankful and so encouraged by

[3:33:54] that transition, and the many other

[3:33:59] agricultural efforts that we need to

[3:34:01] see, like these, to expand. We talk so

[3:34:04] much about moving away from dependency

[3:34:06] on tourism and we have goals to double

[3:34:09] agriculture, double food security, but

[3:34:10] instead, we see attackses like this on

[3:34:13] such an important agricultural operation that we have. And at

[3:34:16] this time, too, when so many familis

[3:34:19] are struggling, cost of food have

[3:34:20] gone up an average of 30% and most of

[3:34:23] us had our rents or housing costs

[3:34:27] doubled. And the West side is already

[3:34:29] we're still coming off the back of a

[3:34:31] pretty quick transition out of

[3:34:34] Plantation, and the scale of 150 years of

[3:34:37] history. So this is really upsetting that

[3:34:41] they would come in and do this. It

[3:34:44] just seems a very another

[3:34:47] disrespectful move to our community and the 141

[3:34:50] workers whose jobs are at-risk right

[3:34:53] now. I emphasize and I'm just really

[3:34:56] upset this situation has been brought

[3:34:59] forward. My -- I grew up Kapahi. So I

[3:35:02] didn't spend much time on West side

[3:35:05] outside of my late boyfriend's history

[3:35:09] growing up in camp 6. I didn't really

[3:35:13] have a great appreciation, I think, for

[3:35:15] how incredible that coffee operation

[3:35:18] until I got a monitoring position

[3:35:20] during Lima Ola and the expansion of

[3:35:23] Lima Ola, where I spent a year literally parked between the

[3:35:27] rows of your coffee. I have some

[3:35:30] incredible pictures, too, of just all of

[3:35:34] the flowers and just seeing those

[3:35:37] giant tall harvesting shaky things

[3:35:39] that go through the aisles. And I was

[3:35:43] blown away by the operation and the

[3:35:46] water. I got to watch the decommission

[3:35:51] of that 110 -year-old difficulty

[3:35:56] difficult that ditch system that was just

[3:36:00] an incredible year in 'Ele'ele

[3:36:02] with more rainbows than I have seen in my

[3:36:05] life. It's literally the land of

[3:36:07] rainbows. It's incredible.

[3:36:13] As Council Member Cowden was saying

[3:36:16] that if these people are listening that

[3:36:18] they reconsider, because it's damaging

[3:36:20] with all of us that feel this hit to

[3:36:25] our community. And I don't have too

[3:36:27] much to say except for I really hope

[3:36:31] that a Resolution can come about that

[3:36:36] doesn't result in you guys getting

[3:36:38] kicked off the land. If there is any

[3:36:40] else that this body can do, I would

[3:36:42] encourage us all to do it. I don't

[3:36:45] know how we possibly can, and this is

[3:36:46] the reality of the world we live in

[3:36:49] where money talks. But I really hope

[3:36:52] that there's a solution that keeps

[3:36:54] everyone's jobs and keeps Kaua'i Coffee

[3:36:59] not just in its current state, but

[3:37:01] growing. We need more orchards and we

[3:37:05] need more of this type of agriculture

[3:37:07] as Council Member Kaneshiro said about

[3:37:09] exports. We talk so much about this

[3:37:11] and this is just another hit that is

[3:37:13] really upsetting. Thank you, Chair.

[3:37:16] >> Thank you. Anyone else? Mr.

[3:37:20] Kuali'i. >> I will just primarily just

[3:37:23] want to express my gratitude to you,

[3:37:25] Chair, for bringing this forward, and to

[3:37:28] Mr. Katayama, and everyone at

[3:37:31] Kaua'i Coffee for everything that you have

[3:37:32] done over the years. I mean, you truly

[3:37:36] have been a vital part of Kaua'i's

[3:37:39] agricultural heritage, and local economy for

[3:37:44] 38 years; right? So I truly hope

[3:37:46] and pray that something is worked

[3:37:49] out. I mean, we definitely are at a

[3:37:52] critical point. You talked about the

[3:37:56] 60-day advance notice, and March 28th,

[3:38:02] 2026, so in three weeks you have got

[3:38:06] to make that notification. So I just

[3:38:09] truly hope that something is worked

[3:38:11] out, and I hope you will keep us posted,

[3:38:14] and let us know if there's anything

[3:38:16] that we can do to help. And communities

[3:38:20] stick together and fight, and try.

[3:38:22] Thank you, Chair.

[3:38:22] >> Thank you. Anyone else? If not,

[3:38:26] thank you all for being here today. I

[3:38:28] know it's a long day. I just wanted to

[3:38:32] clarify one thing that Arryl brought up

[3:38:36] about Senator Kanaha. I am a coffee

[3:38:42] aficionado, ask anyone here. This is

[3:38:44] always, always, always filled with

[3:38:45] coffee, morning to night. I can sleep

[3:38:47] after drinking a cup of coffee. And

[3:38:51] there's no dispute that Kaua'i Coffee

[3:38:53] is better than Kona coffee. There's --

[3:38:58] >> I agree. [Laughter ]

[3:39:03] >> Tell Kanaha, sorry. Again,

[3:39:06] thanks. Thanks for your patience. Thank

[3:39:07] you for being here and it says a lot

[3:39:11] what that many employees show up to

[3:39:13] support their employer. The union

[3:39:15] Representatives are here to support the

[3:39:17] employees. So it says a lot. I don't

[3:39:20] know where this road is going to end

[3:39:23] up. I'm hoping that there's at least

[3:39:26] an extension in the lease. So more

[3:39:32] negotiations can occur. And worst-case

[3:39:34] scenario is that if, in fact, the lease

[3:39:38] does expire, that I hope that the

[3:39:40] intention of the landowner is to

[3:39:45] maintain that very important agricultural operation on the

[3:39:47] island. I don't know how this works

[3:39:51] out. My hope is that Kaua'i Coffee will

[3:39:57] remain and continue, but that is well

[3:40:01] above our reach. Thanks again.

[3:40:03] Thanks for being here. With that, the

[3:40:04] motion is to receive. All in favor say

[3:40:06] aye? >> Aye.

[3:40:07] >> Motion carried. Next item, please.

[3:40:09] >> Chair, did you want to go to the

[3:40:11] audit? >> Sure.

[3:40:13] >> On page 2, C-2026-03 communication

[3:40:16] from Council Chair Rapozo requesting

[3:40:18] the presence of the Managing Director,

[3:40:20] Director of Finance, and the Representatives of N&K CPAs,

[3:40:27] Inc. to discuss the Annual

[3:40:29] Comprehensive Financial Report, Single Audit

[3:40:31] Reports, and management advideosor

[3:40:33] report for the FY'[TKP*-RBG/] ended June

[3:40:35] 30, 2024. >>

[3:40:40] Hang on. >> Before we take the motion,

[3:40:45] it is my intention for a few reasons,

[3:40:50] but I am going ask this Council to refer

[3:40:54] this to the Committee next week, to the

[3:40:57] Finance Committee next week.

[3:41:00] Because I think we all got to see the

[3:41:04] audit. We all got the audit and we did

[3:41:07] meet with the Administration. Today

[3:41:10] we'll hear from the Auditors and I want

[3:41:13] to have an opportunity to digest what

[3:41:14] we hear today and what we share, or

[3:41:17] what the Auditors share with us to.

[3:41:20] And have some time to formulate some

[3:41:23] questions for the Administration rather

[3:41:25] than drop it like bombs today, and

[3:41:30] force them to be answering questions

[3:41:32] that they may not be prepared to

[3:41:34] answer. So ultimately that is what I

[3:41:36] would like. It's obviously going to be

[3:41:37] up to all of you. But I'm not saying

[3:41:40] that we're not going to have the

[3:41:42] discussion. I want to hear from the

[3:41:44] Auditors. I want to hear from the

[3:41:45] Administration and definitely have some

[3:41:48] Q&A and discussion, but ultimately and

[3:41:51] even more so, Mr. Carvalho is not here

[3:41:54] to have this on the Committee agenda,

[3:41:57] where we can expand the questions to

[3:41:58] more and not put anybody on the spot

[3:42:00] today. >> Move to receive.

[3:42:06] >> Not, we're going move to refer to

[3:42:09] the Committee. >> Refer later?

[3:42:11] >> Why don't you go ahead and make the

[3:42:12] motion. >> Move to refer to Committee.

[3:42:15] >> I have a procedure question. >> Second.

[3:42:18] >> There was so much noise in the

[3:42:20] room, I couldn't hear the agenda item

[3:42:22] that she was reading. >> It's the audit.

[3:42:24] >> So that is agenda item 03. >> 2026-03.

[3:42:30] >> So they are here in the room. So

[3:42:31] we're still going to hear them today?

[3:42:33] >> Yes, we're going hear from the

[3:42:35] Auditors. We're going to hear from the

[3:42:36] Administration. I just want to give us

[3:42:38] an opportunity to expand the discussion

[3:42:41] after -- I'm just asking >> I'm good with that. When

[3:42:46] we move to defer

[3:42:48] we're not moving to defer. >> We're moving to refer.

[3:42:51] >> Refer. >> We're going refer to

[3:42:53] Committee next week.

[3:42:54] >> Do we refer it now or after discussion?

[3:42:57] >> We can refer it now. Because it's

[3:42:59] not -- we can do the motion to refer.

[3:43:01] >> It's just for clarity we're going

[3:43:05] hear it today? >> We're going to treat it as

[3:43:09] a normal item. I just want to based on

[3:43:11] what I read and what I expect to hear

[3:43:13] from the Auditors I will have many more

[3:43:15] questions, but I want to give the

[3:43:17] Administration an opportunity to get

[3:43:19] those questions in advance so they can

[3:43:22] be prepared to respond. So with that we'll suspend the

[3:43:29] rules and have the Auditors and Ms.

[3:43:38] Reiko. >> Good afternoon, Council

[3:43:50] Members. Reiko Matsuyama, Office of the

[3:43:54] Mayor and I'm here to introduce the

[3:43:57] Auditors from N&K. So before they are

[3:44:00] going to give you PowerPoint

[3:44:02] presentation of the audit. They are going to go

[3:44:07] into the technical details of the audit,

[3:44:09] and going over any significant

[3:44:14] variances, or fluctuations from

[3:44:16] prior-year. And then they are going to go

[3:44:18] through some of the findings or all of the

[3:44:22] findings. So there were five findings

[3:44:25] this year, which is less than there as has

[3:44:28] been at least in the prior-year. And I

[3:44:34] just want to point out that all the

[3:44:37] findings were like a record keeping type

[3:44:40] finding, not any money going out the

[3:44:43] door, not any money being laundered or

[3:44:47] fraudulent or any of that kind of

[3:44:49] stuff. So they will be here to explain

[3:44:51] more of that. Obviously, we try to

[3:44:54] avoid findings. But really the findings are what make us

[3:44:59] better. They are ways for us to improve. So

[3:45:01] we thank the Auditor for being

[3:45:03] here and being able to uncover some of

[3:45:06] the things that we have did

[3:45:09] incorrectly in the past or overlooked in the

[3:45:11] past. So that is what they are here for.

[3:45:14] This is the only audit that we have

[3:45:17] on the County that is a recurring

[3:45:21] audit. We welcome other types of other

[3:45:24] operational audits or others that we

[3:45:26] can dive deeper into divisions. This

[3:45:28] audit is done every year and unfortunately it's kind of a

[3:45:32] continuous audit. It has been over the

[3:45:33] last couple of years. And we'll get

[3:45:36] into a little bit more of that. These

[3:45:40] findings will help us, turn things

[3:45:43] around and make sure we're doing things

[3:45:45] better and find where areas of improvement are needed. We do

[3:45:50] have some recurring findings,

[3:45:52] meaning that there were findings in Fiscal

[3:45:54] Year 23, and is there are again findings

[3:45:57] in Fiscal Year 24. Those clearly

[3:46:01] are unwelcomed, because it shows

[3:46:03] that we did not improve. We did not

[3:46:06] make the necessary adjustments from

[3:46:07] year-to-year. I had say that for this

[3:46:13] audit though, it leads us into the

[3:46:14] bigger question, why this is still

[3:46:20] delinquent and as we talk about the

[3:46:22] audit, that is handsing down the

[3:46:26] biggest problem of the audit that we're

[3:46:28] so behind schedule. I fully recognize

[3:46:33] that being so untimely makes the

[3:46:35] information that is presented to you

[3:46:41] basically irrelevant because we're 18

[3:46:42] months past the information you are

[3:46:46] looking at now. I fully acknowledge

[3:46:47] that and I take full responsibility for

[3:46:50] that. So as we sit here today, Malia

[3:46:56] and Chelsea are basically cleaning up

[3:46:58] the mess that I made, that I created

[3:47:01] when I was the Finance Director. So I

[3:47:05] will take full responsibility. So as

[3:47:07] we go through this, I know you will

[3:47:10] have questions about why we're so far

[3:47:12] delayed? Ing And I will also say it's

[3:47:15] not going to be corrected in the

[3:47:22] immediate future and I will fall on the

[3:47:27] sword for that. Malia and Chelsea are

[3:47:31] doing the best they can with the help

[3:47:33] of the Auditors. So I want to be fully

[3:47:36] transparent, yes, we're late. We have

[3:47:39] been late for fiscal 23 and late again

[3:47:41] for fiscal 24 and we'll we late again

[3:47:44] for fiscal 25. We'll try to chip away

[3:47:47] at delinquencies to get us more caught

[3:47:49] up. The delays also have an impact on

[3:47:53] the Auditors' schedule. So we realize

[3:47:56] that ideally, we're timely with this,

[3:47:57] and that is all of our goals. Operationally, also for Malia

[3:48:02] and her shop is that when she we can

[3:48:07] finish this timely, she has more time

[3:48:09] to work on her Staff and do training

[3:48:11] for her Staff and find other

[3:48:13] operational issues, or improvements that

[3:48:14] they can do on a day to day basis with

[3:48:18] regular operations and not involved in

[3:48:21] the ACFR 12 months of the year. It does

[3:48:25] prove a lot of burn up for this. As we

[3:48:30] go through this, we recognize it's

[3:48:33] late and there will be questions on

[3:48:37] it. I will answer questions on why

[3:48:38] we're late, but to make sure that you

[3:48:40] folks know that is by far the biggest

[3:48:43] issue with this audit. So with that,

[3:48:53] >> Because I appreciate you falling

[3:48:55] on the sword, Reiko. I appreciate you

[3:48:58] taking full responsibility, but I also

[3:48:59] want to make it very clear that as you

[3:49:04] know you might say, findings and

[3:49:08] findings are good and we learn and we

[3:49:10] didn't lose my money, but the fact of

[3:49:13] the matter, these are material weaknesses; which is the worst

[3:49:18] kind of finding in an audit. These

[3:49:20] happen every year. So we'll have some

[3:49:22] discussion afterwards, but I want to

[3:49:24] set this upfront, before we hear from

[3:49:26] the Auditors this isn't simply findings

[3:49:30] that make us better. And I am going to

[3:49:34] be honest with you Reiko, we were late

[3:49:39] last year, late this year and next

[3:49:42] year. Is not acceptable. So you need

[3:49:43] to tell us what we can do to make it

[3:49:47] work. Is it staffing? Is it what?

[3:49:50] That is just not an answer that I can

[3:49:52] accept. Oh, we're going to be late

[3:49:54] again next year. Because it just

[3:49:57] exponentially compounds and gets

[3:50:03] worse. So you'll have time and go

[3:50:04] through the presentation, but this

[3:50:06] Administration needs to start thinking

[3:50:08] what this can Council do to help you in

[3:50:10] this upcoming budget to make this work?

[3:50:12] So that is it does be on-time? Do we

[3:50:14] need to bring in a firm? Do we need to

[3:50:17] contract a firm to come in to put

[3:50:20] everything in order? This is not

[3:50:21] acceptable. >> Yes

[3:50:23] that we're going to be late next year.

[3:50:25] >> We did bring a firm in, and we had

[3:50:28] a firm working with us the last two

[3:50:32] ACFRs and what we tried to do to bridge

[3:50:35] that gap. It wasn't as effective as we

[3:50:37] had hoped it would be in dumping more

[3:50:40] of the workload onto them. So it could

[3:50:44] be we weren't balancing correctly. But

[3:50:48] really there's really nothing, like we

[3:50:50] can't add positions. We could add

[3:50:53] positions to Malia's Staff, but if we

[3:50:56] hire just accountant trainees and

[3:51:00] accountant 1s that is not going to help

[3:51:02] her. We need to attract higher-level

[3:51:06] accountants to figure out the complicated GASB GFOA

[3:51:12] recommendations and that was our problem when

[3:51:15] we lost -- when we lost five of the

[3:51:17] eight accounting Staff, we lost

[3:51:20] accountants 3s and above and we replaced

[3:51:24] them with accountant trainees and

[3:51:32] accountant 1s. We tried to recruit

[3:51:38] higher-level accountants and they weren't in

[3:51:40] the pool of candidates. Malia has

[3:51:42] done her best and thank goodness we have

[3:51:45] her and we have somebody helping her

[3:51:48] now that will help us catch up. So I

[3:51:52] don't think it necessarily

[3:51:54] exaggerates the problem if we cut down the time

[3:51:57] of delay. Because right now, we

[3:51:59] should really be presenting fiscal 24?

[3:52:01] >> We're one year behind. >> Yes.

[3:52:03] >> So while you may at say it's

[3:52:09] irrelevant, technically it is, but we

[3:52:12] have internal issues that we have it

[3:52:14] fix is what this audit is telling me

[3:52:16] and we haven't been able to do it.

[3:52:18] That is where I have a serious concern.

[3:52:33] All right. >> If we issued a year-ago

[3:52:37] versus issuing now, the number are not

[3:52:39] going to change; right? The

[3:52:41] Auditors do their job and the findings

[3:52:44] wouldn't change necessarily unless they

[3:52:46] are recurring. So the information

[3:52:47] we're providing wouldn't have changed

[3:52:49] whether we issued on-time or issued

[3:52:52] now. But yeah, we fully recognize it's

[3:52:55] late and it shouldn't be late and we're

[3:52:57] doing what we can to correct it.

[3:52:59] >> Why don't you get started? Thank

[3:53:01] you for being here and thank you for

[3:53:02] your patience. I know we're running

[3:53:04] late from our technical issues later

[3:53:06] on. What time is your flight? >> 3:00.

[3:53:10] >> Okay, you will miss it. [Laughter ]

[3:53:20] [Laughter ] >> If you could start by

[3:53:24] saying your name for our captioner and

[3:53:26] proceed. >> My name is Jong Bautista,

[3:53:29] the audit engagement Principal and Andrew

[3:53:33] Hodat as well. Today we're present

[3:53:37] as Reiko said, June 30, 2024. So we

[3:53:40] issued throw different reports for the

[3:53:42] County. Starting with the Annual

[3:53:44] Comprehensive Financial Report. Everyone

[3:53:46] should have this large book. This is the

[3:53:48] financial statements of the County also

[3:53:54] issue a Single Audit Report on the

[3:53:56] funds expended by the County and

[3:53:59] management advisory report which is an

[3:54:01] additional recommendation that arises

[3:54:02] during the audit.

[3:54:04] So we'll start with the ACFR. So going

[3:54:10] onto the different sections starting

[3:54:12] with page 1, that is an introductory

[3:54:15] Section, including a transmittal from

[3:54:17] the Department of Finance and also

[3:54:20] management's discussion and analysis

[3:54:21] for the results for that current Fiscal

[3:54:25] Year. Page 14 is our independent

[3:54:29] Auditor's report. In the second

[3:54:31] paragraph we do state that we issued an

[3:54:34] unmodified opinion. And the ACFR is

[3:54:36] presented fairly, which is also known

[3:54:38] as a clean opinion on GASB and government auditing standards

[3:54:43] and we go over our basis for opinion,

[3:54:47] that clarifies our responsibles as

[3:54:50] you are Auditors for the audit, further

[3:54:56] detailed on page 15 audit whether the

[3:55:03] ACFR is clear from material misstatements and the standards

[3:55:10] of GASB. Actually clarifieses what

[3:55:16] procedures we did perform, including County's

[3:55:19] internal control and audit procedures

[3:55:22] related to risk assessment. If you

[3:55:24] flip to page 17 we issued another

[3:55:29] report under government auditing

[3:55:31] standards that we'll discuss on another

[3:55:33] slide. After this report, the ACFR

[3:55:35] goes to your government-wide statements. Individual fund

[3:55:38] financial statements, notes to the

[3:55:42] financial statements, other required

[3:55:45] supplementary information and unhe had

[3:55:48] or audited statistical sections on next

[3:55:54] couple of slides. Your County statement of net position

[3:55:57] starts on page 31. So this is basically

[3:56:03] the County's balance sheet. This

[3:56:05] year there was no new pronouncements

[3:56:07] issued for Fiscal Year 2024. So all

[3:56:09] of the line items are consistent

[3:56:12] year-to-year. There's no new line items, but

[3:56:15] going down, the balance sheet for

[3:56:20] significant balances with cash and

[3:56:21] investments an increase of $59 million

[3:56:23] primarily due to interest activity and

[3:56:26] increases in fair market value of the

[3:56:29] investments. Going down a couple of lines

[3:56:32] other government. That had an

[3:56:34] increase of $14.4 million. That is due to

[3:56:37] increased grant activity in the Fiscal

[3:56:38] Year. And the timing of work that was

[3:56:41] performed and we'll see those changes

[3:56:43] also in your statement of activities

[3:56:45] when we go to the following page.

[3:56:48] Though that capital assets had an

[3:56:50] increase of $32 PST 6 million due to

[3:56:56] construction in process of Lima Ola

[3:56:58] housing development and various land

[3:57:02] upgrades and improvements. Deferred

[3:57:05] inflows on pension and OPEB, Other

[3:57:08] Post-Employment Benefits. These always

[3:57:10] have year-over-year changes based on

[3:57:13] third-party actuarial reports that

[3:57:14] driver changes in the balances. And

[3:57:16] finally your net position had an

[3:57:19] increase of $134.4 million. This is

[3:57:22] attributable to current year increases

[3:57:24] in the general revenues such as real

[3:57:26] property taxes that we'll now go over

[3:57:28] on our statement of activities which is

[3:57:32] the following page. This page, this is

[3:57:36] your income statement. Government-wide

[3:57:38] for the County. So on the top left is

[3:57:42] your expenses. For your government-wide. So there was

[3:57:46] an increase here large portion

[3:57:47] being due to temporary hazard pay that

[3:57:50] was accrued prior to the issuance

[3:57:52] of this ACFR to be paid out. And also

[3:57:55] additional expenditures related to OPEB

[3:57:58] and pension experiences. To the right

[3:58:00] is your program revenue. So some

[3:58:03] fluctuations there is an increase in

[3:58:04] your capital grantss and contributions

[3:58:08] of $60 million, and this is again

[3:58:10] related to Housing and Urban Development and state

[3:58:14] transportation construction work such as for

[3:58:16] road improvements. This was shown

[3:58:17] as increases in your capital

[3:58:19] assets on your statement of net position.

[3:58:22] Below that is general revenue. So

[3:58:23] this is all of your taxeses so property

[3:58:28] taxes with an increase due to new

[3:58:31] construction on the island and slight

[3:58:34] increase in the taxable properties.

[3:58:39] And then unrestricted investment, and

[3:58:40] interest earnings also had a large

[3:58:42] increase, again due tot fair value

[3:58:47] increases in investments. The last

[3:58:48] item of note in the business type

[3:58:50] activitis in [KHR-UPLT/] to the right

[3:58:51] of that. There was a prior period

[3:58:54] adjustment. This actually increases

[3:58:56] your net position for your business

[3:59:00] type activities related to a liabilities accrued for the

[3:59:04] sewer fund. We'll go over that in further

[3:59:06] details on one of the following slides.

[3:59:12] So going on to page 34. Yes.

[3:59:23] This presents each individual balance

[3:59:24] sheet and income statement, two pageses

[3:59:26] after that. So as a whole, we went

[3:59:29] over the asset and liability fluctuations, but fluctuations

[3:59:40] are on page 36. So the General Fund

[3:59:42] had an increase of $13.7 million. So

[3:59:45] again, this was due to tax revenue of

[3:59:49] 28.4 of an increase that was mentioned

[3:59:50] from the statement of activities, and

[3:59:52] again an increase in your expenditures

[3:59:56] of 23.6. Because of $10 million in the

[3:59:59] temporary hazard pay a lot of it went

[4:00:01] into the General Fund. And on the

[4:00:02] bottom of your General Fund column, we do

[4:00:05] have a prior period adjustment related

[4:00:08] to investments that were accounted

[4:00:09] for in the General Fund, but it should

[4:00:11] have been accounted for in the solid

[4:00:13] waste disposal fund. So you will see

[4:00:15] that exact same period adjustment,

[4:00:17] just fliping it from the two funds.

[4:00:19] On the solid waste disposal fund there

[4:00:22] was a $6.6 million increase. This

[4:00:24] was related to fair market values

[4:00:26] of investments held in that fund.

[4:00:28] And all the way to the right your

[4:00:33] general CIP fund with an increase $19.6

[4:00:40] million to help fund the projects. So

[4:00:45] that was your fund financial statements.

[4:00:48] Your disclosure notes to the

[4:00:50] statements starts on page 51. I will skip

[4:01:01] ahead to page 92. On the very

[4:01:10] bottom is thish header for Employee

[4:01:13] Benefit planss and really this details

[4:01:16] the pension and OPEB plans. So

[4:01:18] there was no major changes in estimates

[4:01:21] are or year-to-year in measurement of

[4:01:22] both liabilitieses

[4:01:24] again, overall changes in your liability deferred outflows and

[4:01:29] inflows, were due to changes in next

[4:01:32] investment or net investment income,

[4:01:34] benefits paid and other factors. Again

[4:01:36] this information that Kaua'i picks up

[4:01:38] comes from third-party actuary reports.

[4:01:43] Another one starts on page 109. This

[4:01:47] is the County's landfill liabilities.

[4:01:49] So it's closure and post-closure care.

[4:01:52] The current year increase here is due

[4:01:54] to a change of some of the inputs in

[4:01:57] the calculation of the estimate. So

[4:01:59] there was a slight change in the amount

[4:02:02] of additional years for Kekaha one and

[4:02:06] Alaka for post-closure and monitoring

[4:02:08] costs and at the same time, for Kekaha

[4:02:10] 2 landfill closure and post-closure

[4:02:12] costs were increased due to forecasting

[4:02:14] for inflation for that existing estimate. For those costs.

[4:02:21] And the final notes that I wanted to

[4:02:23] point out was on page 115. 115.

[4:02:29] So here we have note 20 related to

[4:02:32] restatements I mentioned earlier. So

[4:02:35] that 8.8 million is that first paragraph. This was just an

[4:02:40] error in the entry that recorded full

[4:02:41] liability for a loan, but under GASB,

[4:02:46] you just report what was drawn-down as

[4:02:48] of year-end. So it was taking off

[4:02:55] the 8.8 which wasn't drawn down yet and

[4:02:59] the secondentry is related to the

[4:03:01] adjustment to the governmental fund

[4:03:03] under general and solid waste. So

[4:03:05] again, the investments should have been

[4:03:07] flip-flopped between general and solid

[4:03:09] waste. But overall, in the statement

[4:03:11] of activities there wasn't an effect,

[4:03:13] because it's just between those two

[4:03:16] funds. Additional information on this

[4:03:17] prior period is going to be on the

[4:03:20] single audit slides on the findingsing

[4:03:23] and recommendations. Below that

[4:03:23] finally we have a subsequent events

[4:03:26] note. So we just wanted to mention

[4:03:27] this was a significant transaction

[4:03:32] subsequent to 2024, but that information was obtained prior

[4:03:35] to the issuance of 2024. So it is

[4:03:39] required that for users of financial

[4:03:41] statements that you would disclose certain

[4:03:45] significant transactions and this notes

[4:03:48] the that County issued additional bonds

[4:03:51] as additional refunding for A bonds.

[4:03:56] So that concludes the ACFR portion of

[4:04:01] significant transactions and disclosure

[4:04:02] notes. >> Any questions on that

[4:04:11] Section? Can you go over the landfill

[4:04:17] closure again, page 109?

[4:04:19] >> Yes. So under GASB 18 you are

[4:04:27] supposed to accrue 30 years' of closure and

[4:04:31] post-closure care in order to identify

[4:04:32] the liability that should be there,

[4:04:34] that the County will eventually pay

[4:04:36] out. So there's two closed landfills,

[4:04:42] Hal Akala and Kekaha 1 and estimated

[4:04:45] the that post-closure care, since they

[4:04:47] are closed would incur another one, two

[4:04:52] years based on contracts already in

[4:04:53] place. So they accrued for those costs

[4:04:57] and Kekaha 2 that is still opened for

[4:05:03] inflation costs that were in the prior

[4:05:04] year. Tch any other questions for the

[4:05:20] ACFR part?

[4:05:21] >> Okay, with that I will hand it over

[4:05:25] to Andrew for the single audit. >> So I'm going to go over the

[4:05:32] two other handouts the Single Audit

[4:05:36] Report. First if you turn to page 6,

[4:05:39] the first report has a report on internal

[4:05:43] control over financial reporting and

[4:05:45] financial matters. One major highlight

[4:05:49] this mentions the four findings that

[4:05:51] we determininged to be material

[4:05:53] weaknesses. If you flip to page 9, you

[4:05:56] will come across the second report in

[4:05:59] regards to the County's use of federal

[4:06:02] funds under uniform guidance. So pages

[4:06:05] 9-1 is report of compliance on either

[4:06:08] program internal control over compliance specifically and

[4:06:11] reporting on the schedule of expenditures

[4:06:15] of federal awards. Page 9

[4:06:17] specifically there's a clean opinion on

[4:06:20] compliance. From there, in this report, you

[4:06:25] can flip to page 11 with the note

[4:06:27] that we did not identify any material

[4:06:31] weaknesses, nor significant deficiencies in internal

[4:06:34] control specifically over compliance

[4:06:35] and page 12 mentions the page of federal

[4:06:40] awards as stated. From there, fliping

[4:06:43] to pages 13-19. This breaks down

[4:06:44] all of the federal programs with the

[4:06:48] specific break down of federal

[4:06:49] expenditures for the Fiscal Year, one highlight

[4:06:51] to mention is that there was an

[4:06:57] increase from the previous year, due to

[4:07:00] housing and Transportation Programs.

[4:07:01] The last thing before I flip to page 22,

[4:07:04] which is the summary of Auditor

[4:07:06] results is going to be this year we had

[4:07:11] eight major programs, major federal

[4:07:12] programs that we had to audit, and some

[4:07:14] of that has to do with required

[4:07:16] programs that need to be audited per the

[4:07:19] Feds. Some of it has to do with the volume

[4:07:22] of dollars that were spent during

[4:07:28] this fiscal period. If you flip to

[4:07:31] page 22, so this is basically a

[4:07:36] high-level summary and John mentioned

[4:07:39] financial statements. And we'll go more

[4:07:45] into depth with specific listings of

[4:07:48] all eight major federal programs

[4:07:50] that we did have to audit. The last

[4:07:54] thing of note is due to the County --

[4:07:59] that was due to prior-year material

[4:08:02] weakness findsingsment so that results

[4:08:04] in a higher percentage of federal

[4:08:06] expenditures that need to be audited.

[4:08:10] >> Just real quick, if we're not -- if

[4:08:14] we're a low-risk auditee, what is the

[4:08:18] difference in number of programs

[4:08:19] generally? >> As a low-risk auditee would

[4:08:24] audit 20%. As a high risk auditee,

[4:08:28] 40%. >> One thing to note with the

[4:08:31] mix of programs that were audited

[4:08:34] during this fiscal period, some were must

[4:08:39] selects. So that impacted some of it.

[4:08:45] Moving on, we'll just high-level

[4:08:48] summary of the types of findings. First

[4:08:52] off is material weakness high-level as

[4:08:59] Chair Rapozo mentioned deficiencies

[4:09:04] in internal controls. One thing

[4:09:05] to mention if you are talking

[4:09:07] about compliance and federal awards

[4:09:08] that would be listed as material

[4:09:13] non-compliance. A significant deficiency is a deficiency or

[4:09:19] combination of deficiencies, less

[4:09:22] severe, but to call to attention to

[4:09:28] your folks. One thing to mention is

[4:09:34] the word "material." This will be

[4:09:35] calculated based on the City's financial statements or in this

[4:09:38] case the schedule of expenditures of

[4:09:39] federal awards the dollar amount will

[4:09:41] determine the materialitiality for the

[4:09:44] particular year. In the case of financial

[4:09:45] statements the amounts there. If any we'll get into the

[4:09:52] financial statement findings. So first

[4:09:55] off we have 2024-001 on page 23. This

[4:10:00] is improved controls over

[4:10:01] Financial Reporting. This is the first

[4:10:05] of four material weaknesses. Basically

[4:10:07] there's a bunch of post-closing journal

[4:10:10] entries that came up during the course

[4:10:11] of the audit and these entries needed

[4:10:14] -- should be made before or during

[4:10:19] year-end closing. One thing of note,

[4:10:21] this is one of the repeat findings from

[4:10:25] the previous audit. Second on page --

[4:10:32] >> On the 23, you say we noted numerous instances, what is

[4:10:40] "numerous?" >> So each fund, not every

[4:10:44] fund, but each fund had multiple entries

[4:10:47] not just one or two, but as far as the

[4:10:49] count, we would have to go back to that.

[4:10:53] >> Numerous is a lot. >> I don't think it's 100.

[4:10:59] It's not 10.

[4:11:00] >> It's definitely not 10. >> That is super numerous.

[4:11:05] >> This was again, a repeat finding,

[4:11:13] okay. And just if you could just -- I

[4:11:19] know in your report you say what the

[4:11:21] effect is, but I know like Reiko

[4:11:24] mentioned, it's kind of more ministerial or

[4:11:27] paper, you know, recording and not my -- I

[4:11:30] want to make sure that there is no

[4:11:38] potential for missing money, or

[4:11:44] misallocation or misappropriation of funds.

[4:11:48] >> We didn't detect that kind of

[4:11:50] finding it's more about record keeping.

[4:11:52] >> I know you didn't detect it. It's

[4:11:55] not like you were looking for fraud.

[4:11:58] What I'm asking does this finding tell

[4:12:02] me that there is no misappropriation or

[4:12:08] mis? >> So the objective of the

[4:12:11] audit is not to findpraeed.

[4:12:12] >> Correct. >> This does not tell you

[4:12:14] otherwise, I guess.

[4:12:19] >> Right. Okay. Next.

[4:12:22] >> Page 24 and 25 covers finding

[4:12:33] 2024-002, material weakness 2 of 4.

[4:12:36] It's a two-part finding so first off

[4:12:37] during the initial piece of the audit

[4:12:39] at the start of the audit and throughout, County's

[4:12:42] investments were not recorded at fair value as

[4:12:44] of June 30, 204 as stated in the

[4:12:48] third-party custodian statements and the

[4:12:50] second piece that John mentioned

[4:12:52] earlier was a prior period adjustment that

[4:12:54] needed to be occur between the General

[4:12:56] Fund fund and Solid Waste Fund due to

[4:12:58] accounting for an investment account in

[4:13:00] the wrong fund.

[4:13:09] Turn to page 26, 2024-003. Untimely

[4:13:14] processing of expenditures. Material

[4:13:17] weakness. This is -- this is a new

[4:13:21] finding. So in this case, the County,

[4:13:24] there are two things that came up.

[4:13:26] First off, the County didn't record

[4:13:30] roughly $622,000 of expenditures in the

[4:13:32] current fiscal period. So it was

[4:13:33] recorded, it was just in the wrong

[4:13:35] period and cut-off issue. Secondly

[4:13:38] there was approximately $1.9 million of

[4:13:41] expenditures not initially tacked for

[4:13:44] capitalization and initially recordeds

[4:13:46] capital outlay expendituring, rather

[4:13:47] than being designated to book as an

[4:13:55] asset. I misspoke earlier. We have

[4:14:00] three repeat findings, and four material weakness. So I

[4:14:06] miscounted that. The last finding

[4:14:09] 2024-004 due to other government prior period

[4:14:12] adjustments cited as a material weakness is a new finding.

[4:14:15] John mentioned earlier was

[4:14:17] specifically relatesed to the sewer fund,

[4:14:18] and the County at the time overstated

[4:14:25] liabilities by approximately $8.8

[4:14:27] million rather than what was drawn down

[4:14:30] in draws from the grantor as of fiscal

[4:14:35] end. Keeping in mind, this came up due

[4:14:38] to reconciliation provided by the

[4:14:41] County during the audit, and some of

[4:14:43] the information that came up in current-year activities caused

[4:14:47] us to ask additional questions, which

[4:14:51] resulted in this finding. I know

[4:14:55] there's a lot that you folks have in

[4:14:58] terms of discussion, and things that

[4:14:59] you might be concerned about. So we

[4:15:04] have good news, statute on prior year

[4:15:06] finding last year's audit I believe we

[4:15:08] had about, what was that? We had five

[4:15:13] of material weaknesses, two significant

[4:15:14] deficiencies for a total of seven

[4:15:16] reported findings in laster's Single

[4:15:21] Audit Report. Sorry, this is on page

[4:15:30] 35. You will see the status report in

[4:15:34] the report. But finding 2023-001 is a

[4:15:37] repeat finding that came up again as

[4:15:42] 2024-001 and then the investment

[4:15:44] balance finding last year for 2023-002,

[4:15:46] which came up this year as 2024-002.

[4:15:51] The good news is the other findings

[4:15:53] that we have of finding related to

[4:15:57] reconciliation of interfund balances

[4:16:00] 2023-003, material weakness was accomplished. And we didn't

[4:16:04] come across issues this year for

[4:16:06] that. If you flip to the next slide,

[4:16:12] 2023-004 there was an issue regarding

[4:16:14] controls over accounting for capital

[4:16:17] assets regarding accounting for land

[4:16:18] purchase. We didn't come across issues

[4:16:19] for that in this current Fiscal Year

[4:16:22] audit that was accomplished. Finding

[4:16:28] 2023-005 landfill post-closure cost

[4:16:29] prior period adjustment material weakness,

[4:16:31] we didn't come across issues regarding

[4:16:34] that. I think there was an erroneous

[4:16:36] accrual in the prior year, so that was

[4:16:41] accomplished there. Finding 2023-006,

[4:16:43] completeness of transient accommodation

[4:16:44] tax revenue was a significant deficiency. We didn't note any

[4:16:49] issues regarding that in Fiscal Year

[4:16:53] 24 audit. And lastly, 2023-007

[4:16:59] reconciliation of lost data was a significant

[4:17:02] deficiency during the prior year's audit

[4:17:06] and we discussed with management and

[4:17:07] looked at what they had done and we

[4:17:09] believe that we think that is accomplished

[4:17:14] as well. So seven findings from last

[4:17:18] year's audit, two repeats down to four

[4:17:23] in the report.

[4:17:29] >> All right. >> The last report we'll cover

[4:17:36] today is the Management Advisory

[4:17:37] Report. So this is a smaller pile. Page

[4:17:41] 3, we discuss using this as an

[4:17:45] opportunity to strengthen internal control and

[4:17:49] operating efficiencies. Page we had

[4:17:54] finding 2024-001 compile absents

[4:17:56] records accurately. This is a repeat

[4:17:58] finding during our audit we noted

[4:18:01] Pfeiffer incidents that employee hours

[4:18:04] didn't agree to the Department accrual

[4:18:06] report, which is used for the ACFR.

[4:18:13] >> I got a question. What is -- I

[4:18:18] understand what work day is, what is

[4:18:20] the Department accrual report, is that

[4:18:22] a paper? >> That's -- so like I believe

[4:18:26] what happens each Department will

[4:18:28] submit their breakdown of employees'

[4:18:32] vacation hours and sick and that

[4:18:35] correlates, so they take that information from

[4:18:37] each Department to calculate the

[4:18:38] amount booked as a liability on the

[4:18:41] financial statements.

[4:18:42] >> I would assume though, and maybe we

[4:18:44] can ask the Administration later, I

[4:18:47] would assume that the Department,

[4:18:49] wouldn't the Department accrual report

[4:18:51] come from workday? >> It starts with workday, but

[4:18:56] based on the previous set-up there's

[4:18:58] a bunch of different reports, so it's

[4:19:00] not like you can pull it and set it and

[4:19:03] forget it. I beef there's a Mary Kay

[4:19:05] Fualaau process to get it perfect point

[4:19:06] A to point B and it's not as simple

[4:19:09] as pulling the report, aleast it

[4:19:11] wasn't at that point in time. Due to

[4:19:14] that, there was some human error involved

[4:19:16] and that resulted in some of the

[4:19:20] findings that came up.

[4:19:21] >> Okay. We'll wait for the Admin to

[4:19:23] come up. >> Okay.

[4:19:27] >> Next anybody else have a question

[4:19:29] on that? That one is a burn for me.

[4:19:34] >> And last item page 10 of the

[4:19:37] report, just a status update. So

[4:19:40] 2023-001 as you folks know is a repeat

[4:19:47] finding and just wanted to mention that.

[4:19:55] >> Any questions? They won't be here

[4:20:01] next week. So if you have a question

[4:20:05] for them, ask them. >> They are so fast, it's kind

[4:20:09] of challenging to keep up.

[4:20:12] >> It's almost like hearing it again.

[4:20:14] Go ahead, do you have a question?

[4:20:16] >> Yes, please. I'm the newest

[4:20:18] Council Member and I'm learning a lot.

[4:20:21] And I am just wondering you guys, I'm

[4:20:24] assuming you do this for municipalities

[4:20:26] across the country? >> In the State of Hawai'i.

[4:20:29] We do County of Maui as well. >> Okay. That's it?

[4:20:34] >> We used to do County of Hawai'i,

[4:20:36] but that was a couple of years ago.

[4:20:37] >> In your experience of auditing,

[4:20:39] even outside of that, whatever experience you have, is

[4:20:44] findings of five findings like this kind of

[4:20:47] a normal thing that you uncover

[4:20:51] in audits of this nature? Or is it low?

[4:20:55] Is it high?

[4:20:56] >> I believe other Counties also had

[4:20:59] similar amount of findings. >> Okay.

[4:21:01] >> It's not out of the realm of

[4:21:04] possibilities for an organization as

[4:21:07] large as the County? >> If you were to rate these

[4:21:11] findings, in your experience of really

[4:21:14] bad things you may have found in audits,

[4:21:17] and the best of the best, between 1-10,

[4:21:19] can you give me a number of 10 being

[4:21:24] the absolute best and 1 being the

[4:21:29] absolute worst.

[4:21:30] >> I'm not sure I could rate 1-10.

[4:21:33] >> It was worth a try. Thanks. >> I have a follow-up on that.

[4:21:37] My memory is a couple few years

[4:21:41] ago, we got really a good star on our

[4:21:45] audits. Is that right? We were doing

[4:21:47] excellent? >> Well, we did used to finish

[4:21:53] it in January.

[4:21:54] >> We finished it on-time. Weren't we

[4:21:58] getting acknowledged as having done

[4:21:59] very good job on it? There was some

[4:22:01] sort of -- >> If you used to submit by

[4:22:05] that deadline of December 31st, you

[4:22:09] would get the GFOA certificate of

[4:22:12] excellence that used to be in the front of

[4:22:15] ACFR >> So we had a certificate,

[4:22:18] but I guess that is not determining

[4:22:20] the number of findings , but we got

[4:22:25] it done on time.

[4:22:26] >> It's a participation trophy. >> All right.

[4:22:34] >> You turned it in on time and here

[4:22:37] is your little cookie. It's -- I

[4:22:40] always question, like, yeah, we take so

[4:22:42] much pride on certificates that means

[4:22:46] you turned it in on time. >> I just want to support a

[4:22:52] little bit of what you said.

[4:22:53] >> Did you notice it's not Heber this

[4:22:55] time. >> Yes.

[4:22:56] >> I just want to make sure we don't

[4:22:59] normalize having late, because it's too

[4:23:01] late to actually be meaningful for this

[4:23:03] budget, but I appreciate appreciate Malia. We just

[4:23:19] whipped through this so fast, it's hard

[4:23:24] for me to get questions, but I will

[4:23:26] ask our team.

[4:23:27] >> The Auditors are here to pretty

[4:23:31] much the ACFR and the numbers and the

[4:23:36] sheets. It's the findings. That needs

[4:23:38] to come from the Admin. As far as it's

[4:23:42] internal processes that are messed up,

[4:23:45] and that is why in the beginning I'm

[4:23:49] asking the Administration to tell us

[4:23:51] what you need. That -- I'm not going

[4:23:53] to be up here -- my biggest fear is

[4:23:58] Malia quits that is my biggest fear

[4:24:01] that Malia says screw this, they are

[4:24:05] dumping everything on me. I don't want

[4:24:07] to see that happen. That is why we're

[4:24:08] here. That is the value of this audit

[4:24:12] for us to make a determination, what do

[4:24:15] we need to make that happen? I won't

[4:24:19] buy the excuse we lost Staff, people

[4:24:22] left, what do we need? If we have to

[4:24:26] invest, let's invest to get it right.

[4:24:28] I will tell you, it's going to be late

[4:24:30] next year. If we're late next year

[4:24:33] more than likely we'll be late the next

[4:24:35] to year after that. So let's do what

[4:24:37] we got to do to get it right. >> Yes.

[4:24:40] >> That is my whole position. >> It's important for me,

[4:24:43] because for me, I usually go through these

[4:24:45] every single page and as noted make

[4:24:50] my yellow sticky notes because I find

[4:24:52] this is an essential piece for me prepping

[4:24:55] my mindset for looking at the

[4:24:56] budget and knowing where we need to make

[4:25:01] differences. So you know, I needed

[4:25:04] this a year-ago. >> Any more questions.

[4:25:06] >> And there's a lot of changes.

[4:25:07] >> Any questions for the Auditors?

[4:25:12] >> Not their fault. >> If not, thank you

[4:25:15] gentlemen. I guess you will make your flight.

[4:25:19] If we have any questions, we don't

[4:25:21] expect you to be back next week, but

[4:25:24] we'll send them over if we have any

[4:25:27] questions. >> Thank you.

[4:25:31] >> Again, if you guys have any questions for the

[4:25:35] Administration, that they can answer today, again, I

[4:25:38] want to have a little more time to

[4:25:42] digest, and that is entirely up to you all.

[4:25:47] >> I have a question on the workday

[4:25:54] finding. Is in a way we can update it

[4:25:56] so we don't have to do manual work,

[4:26:00] where workday works with the current

[4:26:01] system that we have? It's always been

[4:26:03] an issue, you know, of updating our

[4:26:06] whole system. I know we put some money

[4:26:08] into it. I don't know if we updated

[4:26:11] anything yet or made the transition,

[4:26:13] which I know is difficult to do.

[4:26:15] Workday is a newer system and ideally

[4:26:18] we would not like to do things manually. Have we been able to

[4:26:29] do it so we don't have to do it

[4:26:31] manually. >> Thank you.

[4:26:34] >> Did they prepare you? >> I prepared myself -- yes,

[4:26:38] they did. To answer Arryl's question,

[4:26:41] it's been a continuous work in progress.

[4:26:43] I have been like spending countless

[4:26:46] hours trying to push the button

[4:26:48] report and we magically have the beautiful

[4:26:51] thing with all the right numbers in it.

[4:26:53] The best I can explain based on my

[4:26:55] knowledge of the workday system, there's

[4:26:59] constant updates, workday sends us

[4:27:04] annual things and we have this and this and

[4:27:06] taking the knowledge, how can I use

[4:27:07] this and make these reports to get you

[4:27:09] folks what you want to see to make

[4:27:11] sure that the end-user is happy? So far

[4:27:14] in my research with this system, it's

[4:27:18] a compilation of different

[4:27:19] reports that I have to physically take from

[4:27:22] this, put it in here, take from this one,

[4:27:24] and put it in a spreadsheet, so the

[4:27:29] Department liability report you asked the

[4:27:30] Auditors about, that is my baby right

[4:27:33] now, since Fiscal Year 24.

[4:27:37] >> Let me ask a stupid question, if I

[4:27:40] right now, if I went to our fiscal

[4:27:43] person here Cody and said can you print

[4:27:46] out a list of everybody's vacation

[4:27:50] balances, she cannot do that on workday?

[4:27:53] >> She from my knowledge she can do

[4:27:56] like a record by each person, not all

[4:27:59] on one piece of paper. >> Okay.

[4:28:03] >> Staff by Staff? >> For certain.

[4:28:07] >> So workday won't compile a list.

[4:28:09] This is why I ask and you were here

[4:28:12] last year. Last year we had the same

[4:28:13] finding. >> Yes.

[4:28:14] >> Last year were were told because we

[4:28:16] had half of the year, we had workday

[4:28:19] only half of the year. But next year,

[4:28:21] we're going to be fine, because we're

[4:28:23] going to have a full-year of the

[4:28:26] workday. Well, we had the full-year of

[4:28:28] workday and that is still here. What I

[4:28:34] hear with workday we don't have the

[4:28:36] ability to create overtime balance

[4:28:38] reports even though workday is what

[4:28:39] we're using? >> Are we talking about

[4:28:42] overtime or accrual balances?

[4:28:44] >> So right now as I understand it, if

[4:28:49] an employee wants to take vacation

[4:28:51] that's through workday? >> Yes.

[4:28:52] >> It's electronic? >> Yes.

[4:28:53] >> And a Supervisor approves, like I

[4:28:57] approve everybody's here. >> Yes.

[4:28:59] >> Doesn't workday have the capability

[4:29:04] to process or catalog that information?

[4:29:08] So that if I want to run a report on

[4:29:12] everybody in my Department how many

[4:29:18] vacation hours they had and they took

[4:29:19] that is not available in workday?

[4:29:24] >> You can put as of know as of a

[4:29:27] certain date, that is what I pulled for

[4:29:29] this Fiscal Year one. I want to mo the

[4:29:31] end balance of a certain date for all

[4:29:33] of the these people in this Department.

[4:29:35] I can do that. >> Okay.

[4:29:37] >> What it can't give me is how much

[4:29:40] did they earn over a Fiscal Year? So I

[4:29:44] have to pull another report and add

[4:29:48] that to my one that I have here to get

[4:29:49] all of the information. And that is a

[4:29:52] manual process. So we're still like

[4:29:55] catching up with workday and calling

[4:29:57] consultants, hey, make this work for

[4:30:01] us. So it's in inprogress thing.

[4:30:03] >> So it hasn't made it more efficient

[4:30:06] -- I shouldn't be talking to you. It

[4:30:10] hasn't made it efficient. >> Annette Anderson, Director

[4:30:14] of Human Resources. Thank you for

[4:30:15] the question. I want to emphasize

[4:30:19] the Departmental accrual report is

[4:30:21] needed by the Finance Department for

[4:30:28] the ACFR, there's components of the ACFR

[4:30:33] that needs to be put in. The whole

[4:30:39] workday program is wonderful. Our goal

[4:30:41] since workday is to tweak so we

[4:30:46] didn't have hardly any manual process. I'm

[4:30:48] upset and there's nothing I can do

[4:30:50] about it, in order to complete this

[4:30:52] report that finance needs for the ACFR, we

[4:30:57] need a manual report. She is pulling

[4:31:00] different manual reports from work day,

[4:31:05] putting it into a spreadsheet and doing

[4:31:07] formulas in excel and that is where the

[4:31:10] errors occurred that the Auditors

[4:31:12] pointed out. The good news, when we got

[4:31:14] the findings from the Auditors she has

[4:31:17] also researched how can I make pulling

[4:31:20] of the data together so that we don't

[4:31:22] have errors? And it's my understanding, and she can

[4:31:26] confirm, that we're almost 100%

[4:31:29] confident that we have fixed it going forward,

[4:31:31] because she knows how to create the

[4:31:35] appropriate formulas when she is pulling

[4:31:37] that all of these reports from workday

[4:31:41] into a spreadsheet, which again a Mary

[4:31:44] Mary manual process. It's

[4:31:51] unfortunate, but we have Human Resources work

[4:31:54] day for the payroll,

[4:32:01] Time accrual and recruitment. Workday

[4:32:03] is a big company with different types

[4:32:06] of software. There's a financial

[4:32:10] management software that workday has.

[4:32:12] If we had that, which we don't and I

[4:32:15] don't think we will, it would automatically pull the

[4:32:19] components that are needed for the ACFR. But

[4:32:22] it ain't going to happen.

[4:32:23] >> Why isn't it going to happen?

[4:32:25] >> Well, that is a procurement issue.

[4:32:27] >> Okay. >> So my understanding is that

[4:32:29] we're not going to have that from

[4:32:32] workday. We're going to just like we

[4:32:33] have now, a different financial system

[4:32:35] and that is part of the problem we have

[4:32:37] with this County; right? Because you

[4:32:39] have softwares that cannot integrate.

[4:32:41] >> That is -- >> So we went with workday,

[4:32:44] because I remember the sales pitch. We

[4:32:47] went with workday to make it all

[4:32:50] electronic. Because we're using a different

[4:32:52] software to handle a different part of

[4:32:55] financial reporting, now we have to

[4:32:58] hire somebody to manually input data

[4:33:01] into a spreadsheet and then manually

[4:33:04] recovery the data from workday and now

[4:33:06] you are telling me that workday has a

[4:33:10] module that would eliminate that.

[4:33:12] >> It's a financal system. I don't

[4:33:17] know it's called a module. >> Whatever they have.

[4:33:21] >> It's a huge investment for the

[4:33:26] County; right? So then another way I

[4:33:29] guess it's been represented is HR needs

[4:33:33] HR software. Yes, Human Resources

[4:33:35] Management system; right? So we when

[4:33:37] we went through the procurement, and

[4:33:39] had all of the different vendors;

[4:33:42] right? We decided workday was the

[4:33:44] best for HR needs for payroll and being

[4:33:46] able to do recruitment. So we got

[4:33:48] workday. When you have a finance side

[4:33:50] of the house looking for what all they

[4:33:53] do for the finance, and again, I don't

[4:33:55] want to get into any procurement

[4:33:56] issues, but my understanding there are

[4:33:58] different vendors, you know? Sharing

[4:34:01] what their product could do. And the

[4:34:03] costs of their product; right? And so

[4:34:06] it is what it is that finance has a

[4:34:09] different system now, or will have a

[4:34:12] different system, or will have the

[4:34:13] same? I don't know how to characterize

[4:34:15] it, but my belief it's not going to be

[4:34:19] workday. So yes, I'm frustrated, but

[4:34:20] like I said, I'm confident working with

[4:34:25] Hale and others in HR, Jill, our HR

[4:34:29] Manager, and Brandon, who is the HRMS

[4:34:35] Administrator, that we have done our

[4:34:37] very best to make sure that the way

[4:34:39] that she is going to compile it for the

[4:34:43] next Fiscal Year is not going to have

[4:34:47] the errors, because she figured it out.

[4:34:50] So it what it is and the other thing

[4:34:52] is too, from the past, the Departments

[4:34:55] prepared this report accrual report.

[4:34:58] And she took over last year, so now

[4:35:05] it's on payroll. But I mean, I can't

[4:35:08] promise you that it's to be perfect,

[4:35:11] but I feel good, and I'm sad about what

[4:35:15] I just said about the manual, but I

[4:35:17] feel good we got it. >> Anyone else? Mr. Kaneshiro,

[4:35:23] was that what you got? You got

[4:35:25] your answer? >> It's not possible to

[4:35:28] integrate the two systems. But they're

[4:35:32] trying do their best on doing it

[4:35:34] manually, however they are doing it.

[4:35:36] >> Well, we have to figure out how to

[4:35:38] fix it. I guess that is where I'm at.

[4:35:40] When we look at a material weakness,

[4:35:43] this one isn't necessarily a material

[4:35:45] weakness, but when you get these repeat

[4:35:48] findings, you know? We got to fix it.

[4:35:52] And if it's cost should not be the

[4:35:57] obstacle. I can only imagine how it is

[4:35:59] for you to be pulling all of these

[4:36:01] numbers and then manually putting them

[4:36:05] on spreadsheet, hoping that the number

[4:36:06] you got from your system is correct.

[4:36:10] ? >> It's been a learning

[4:36:16] experience, but echoing what Reiko said

[4:36:19] earlier, I'm very appreciative of the

[4:36:22] finding because it makes me want to and

[4:36:26] perform better not only my

[4:36:29] efficiencies, but the end-user. How to use this

[4:36:32] complex and robust system to help not

[4:36:35] only my Department, but everybody, and

[4:36:38] looking at accruals every day and not

[4:36:40] questioning is this right or wrong?

[4:36:42] How can we get to this point? I

[4:36:44] believe this system. It has so much

[4:36:47] capabilitiess, you know? So I think it

[4:36:51] offerss a meaningful insight and

[4:36:53] supports stronger accountability on me

[4:36:55] and my Staff to do better for our

[4:36:59] County employees. So I'm hopeful.

[4:37:02] >> One more thing and when we did get

[4:37:05] the findings the five instances, she

[4:37:08] and her Staff did go through the

[4:37:12] remainder of the employees, you know,

[4:37:14] to assure that everything is correct.

[4:37:16] Because we know audits, they pick

[4:37:19] certain things. So that was another

[4:37:21] step done to assure that everything is

[4:37:23] correct after we received the findings.

[4:37:28] >> That is what the audits are, a

[4:37:37] tool; right? Thank you. With that,

[4:37:40] we can move on. I would expect next

[4:37:43] week at the Committee meeting we can

[4:37:45] dig into each of the other findings, and

[4:37:54] hopefully Administration will be

[4:37:56] prepared to respond. Otherwise, we can

[4:37:57] take a lunch break and come back, and

[4:38:03] hammer it out today. >> Let's just do it.

[4:38:22] >> I think we can wrap up this agenda

[4:38:28] by 1:30. This is- I know it's keeping

[4:38:32] Staff a little longer. If we do the

[4:38:36] Committee meeting briefing, if not,

[4:38:38] then we can -- if we want to do it next

[4:38:40] week, we can get through this agenda

[4:38:43] today and not take a lunch break. Is

[4:38:45] that okay with Staff? Staff, do you

[4:38:49] want to take a break? You are okay?

[4:38:51] Can you do another 15 minutes? 20

[4:38:54] minutes? Okay. All right. So we'll do

[4:38:58] that. We'll proceed. The motion is to

[4:39:00] refer. Is we'll get to Committee next

[4:39:03] week, and the only thing I ask, get

[4:39:06] your questions across the Street as

[4:39:07] soon as possible, so they can be

[4:39:09] prepared when they come back. When

[4:39:13] that, I will call the meeting back to

[4:39:15] order. Any further discussion? Seeing

[4:39:16] none, all in favor say aye? >> Aye.

[4:39:20] >> Motion carried next item, please.

[4:39:24] >> Page 2, C-2026-02 communication

[4:39:26] from Assistant Chief of Police Darren

[4:39:30] Rose, Police operations bureau requesting Council approval of

[4:39:33] the indemnification clause

[4:39:34] contained in the navigate 360 master service

[4:39:40] agreement and training terms and

[4:39:41] conditions which continues to use the P3 tips

[4:39:44] Crime Stoppers platform, enabling

[4:39:46] community members to anonymously report

[4:39:47] council actiest and to indemnify the

[4:39:50] County against claims resulting from

[4:39:54] the company's gross negligence,

[4:39:58] willful misconduct or initial legitual

[4:40:00] property infringement.

[4:40:01] >> Moved. >> Sick.

[4:40:03] >> Any discussion or public testimony?

[4:40:05] All in favor say aye? >> Aye.

[4:40:06] >> Motion carried next I. [PHRAO-RBGS/]

[4:40:07] } It's C-2026-25 communication from

[4:40:16] the Executive on Aging requesting

[4:40:17] Council approval to receive and expend

[4:40:19] federal funds for the first allotment

[4:40:23] in amount of l9,516 for Fiscal Year 2026

[4:40:26] and to indemnify the State Executive

[4:40:31] Office on Paging for the Nutrition

[4:40:34] Services Incentive Program provision on

[4:40:35] congregate and home-delivered meals.

[4:40:37] >> Moved. >> Second.

[4:40:39] >> Any public testimony or discussion?

[4:40:41] If mot, all in favor a aye? >> Aye.

[4:40:44] >> Motion carried. Next item, me.

[4:40:48] >> C-2026-406 communication from the

[4:40:50] Director of Planning requesting Council

[4:40:51] approval to receive and expend Federal-State fortunates for

[4:40:55] the Hawai'i CH2Ms CZM program in an

[4:40:59] amount of $2200,000 and to indemnify

[4:41:01] the State of Hawai'i in accordance with

[4:41:04] the State of Hawai'i general conditions,

[4:41:06] for administering the program, this

[4:41:09] recurring pass-throughbrant will be

[4:41:10] utilized to continue the implementation

[4:41:12] of the Council President program on

[4:41:14] Kaua'i, commencing July 1,2025 to June

[4:41:17] 30, 206 uniwill be [KP-EUPBD/] on

[4:41:19] salariess, wages, travel and other item

[4:41:20] for the Council Presidenting program

[4:41:22] specifically for the implementation and

[4:41:24] enforcement of the special management

[4:41:25] area rule and regulations of the County

[4:41:26] of Kaua'i and Shoreline setback provision of Chapter 8 Kaua'i

[4:41:30] County sod

[4:41:33] Code 1987, as amended,. >> Moved.

[4:41:35] >> Second. >> I don't see planning.

[4:41:39] >> I saw Planning earlier. Not sure

[4:41:41] if they stuck around. >> Hi Ka'aina.

[4:41:44] >> I'm just asking if anyone had any

[4:41:49] questions >> I have a simple question,

[4:42:03] this [KR*-PLGZ/] $200,000 is that

[4:42:05] what we continue do with the c Grant

[4:42:10] Program? >> Ka'aina Hull on behalf of

[4:42:14] the Planning. Sorry, Chair, I

[4:42:15] heard you say lunch. So I ran back.

[4:42:20] Apologies, the sea Grant Program is funded

[4:42:23] by the County of Kaua'i CZM funds come

[4:42:29] from the Feds and fund through the

[4:42:31] State Office of Planning and given to

[4:42:33] the County of Kaua'i to run our CZM

[4:42:38] program. I will say that this $200,000

[4:42:44] was not actually released previously by

[4:42:49] the White House and we have been

[4:42:51] somewhat functioning to fund our

[4:42:53] positions internally until we got

[4:42:56] signaled by OEP to create a possible

[4:42:59] funnel in these small, small chance

[4:43:03] that the White House releases the funds.

[4:43:04] >> That is why it's July 1st, I was

[4:43:07] wondering why it's after the fact.

[4:43:08] >> So when we generally come to

[4:43:14] Council, that we annually receive and

[4:43:15] expend the funds, that is early on in

[4:43:17] the year. The Office of Planning had

[4:43:21] made the determination, made the

[4:43:22] assessment that even though Congress

[4:43:24] had allocated these monies the White

[4:43:27] House wasn't going to release them. So

[4:43:28] we never came to this body to request

[4:43:31] permission to receive and expend, and

[4:43:34] now it looks like not a Sun strong

[4:43:38] possibility with discussions with EOP,

[4:43:40] but a strong possibility these funds

[4:43:47] may be released to receive these funds

[4:43:50] the people who run our CZM program?

[4:43:58] >> Four Staff. >> So we have four members and

[4:44:03] so have been pulling that money to pay

[4:44:07] them - excess for unhired people?

[4:44:09] >> We have two vacancies that we'll

[4:44:13] probably get during budget discussions

[4:44:15] with two vacancies that we have not

[4:44:18] filled with express purpose because we

[4:44:19] have been using those funds to fund the

[4:44:22] live body positionses that the Federal

[4:44:25] Government no longer provides funding

[4:44:26] for. >> So we have avoided laying

[4:44:30] off people critical to our program.

[4:44:31] >> Correct. >> Do we think these monies

[4:44:34] are ever going to come in or we're going

[4:44:36] to have to add different General Fund

[4:44:38] dollars for moving forward?

[4:44:39] >> We're going through that discussion with Admin right now.

[4:44:42] >> Okay. With those two positions

[4:44:44] that we didn't hire, there's enough

[4:44:46] money to keep this program going

[4:44:49] through until the end of June? >> The State somewhat in

[4:44:57] response to the White House withholding the

[4:44:59] monies last year appropriated monieses

[4:45:02] statewide for the Coastal Zone Management program and Kaua'is

[4:45:08] was allocated roughly $94,000. So

[4:45:10] we add that $94,000 to the vacancy

[4:45:14] positions and we're able to make the four

[4:45:22] existing fully staffed CZM positions

[4:45:26] whole. >> So we won't have a Money

[4:45:29] Bill between then you anow?

[4:45:31] >> We don't anticipate that. >> The other two positions?

[4:45:36] >> We're tracking all of our positions

[4:45:42] for the reimbursement, but in the

[4:45:45] chance to get that we have been tracking those hours

[4:45:47] specifically for that.

[4:45:48] >> And do you mind telling us what two

[4:45:51] positions aren't being filled? We just

[4:45:53] heard about that we're behind in

[4:45:56] finance, because we had an unanticipated gap in skilled

[4:46:02] staffing. Who aren't we filling in order

[4:46:04] to be taking care of this, if you

[4:46:06] know? >> There's a long range

[4:46:12] planner position and excluded

[4:46:15] managerial position that runses our budget

[4:46:18] and administrative Staff

[4:46:19] >> So two important positions that

[4:46:21] aren't filled right now. Okay; thank

[4:46:24] you. >> Any other questions for

[4:46:28] Planning? If not thank you, Ka'aina.

[4:46:32] >> Thank you for running over. >> Anyone in the audience

[4:46:37] wishing to testify? Seeing none, I will

[4:46:39] call the meeting back to order. Any

[4:46:41] further discussion? The motion is to

[4:46:42] approve, all in favor say aye?

[4:46:43] >> Aye. >> Motion carried. Next item,

[4:46:46] please. >> C-2026-07 communication

[4:46:48] from the executive on age requesting

[4:46:50] Council approval to receive and expend

[4:46:53] donations from three various sources in

[4:46:55] the amount of $340 to help offset the

[4:46:58] costs of meals served from the home-delivered meals program.

[4:47:00] The purpose of the nutrition

[4:47:02] program is to reduce hunger and food

[4:47:04] insecurity, and provide meals to the

[4:47:06] participants. >> Move to approve.

[4:47:09] >> Second. >> Moved and seconded. Any

[4:47:11] discussion or public testimony? Seeing

[4:47:13] none, all in favor say aye?

[4:47:14] >> Aye. >> Motion carried. Next item

[4:47:18] [STKPWHRAO*-EFRPBLGTSZ/] C-2026-09

[4:47:19] communication from the Director of

[4:47:21] Finance, requesting Council approval to

[4:47:24] accept unappropriated and unknown/unspecified future

[4:47:26] obligation terms in the State of work

[4:47:29] associated with the transient

[4:47:31] accommodation tax payments on line with Tyler

[4:47:33] Technologiess, which are typically of

[4:47:35] online payment agreement and present

[4:47:37] limb to no risk to the County. >> Move to approve.

[4:47:40] >> Second. >> Any discussion or public

[4:47:43] testimony? >> Can we ask Chelsea a quick

[4:47:49] question? >> Sure, with that I will

[4:47:54] suspend the rules.

[4:48:05] >> Unknown, unaappropriated, unspecified -- kind of weird

[4:48:15] hearing that.

[4:48:17] >> Chelsea Sakai, this is typical of

[4:48:20] online payment program. So we don't

[4:48:22] know so we don't have it budget. So

[4:48:24] it's unknown in that sense. >> Okay. This is our TAT so

[4:48:33] if somebody's credit card doesn't

[4:48:35] work, something like that? So we

[4:48:38] don't go after Tyler Technologies?

[4:48:42] >> So we're responsible for the

[4:48:45] charge-back, if there are any. >> So Tyler Technologies say

[4:48:49] hey, if you have a bad card it's not

[4:48:52] our challenge. Thank you.

[4:48:53] >> This is not an indemnification, but

[4:48:57] basically allowing them or agreeing to

[4:48:59] the term that we'll pay the charge-backs.

[4:49:02] >> Okay. >> Any other questions? If

[4:49:06] not, thank you.

[4:49:07] >> With that I will call the meeting

[4:49:09] back to order. Any further discussion?

[4:49:11] Seeing none, the motion is to approve,

[4:49:12] all in favor say aye? >> Aye.

[4:49:14] >> Motion carried. Next item, please.

[4:49:17] >> C-2026-10 communication from the

[4:49:19] Director of Finance requesting Council

[4:49:22] approval to accept travel-related

[4:49:24] reimbursed expenses from the International Association of

[4:49:27] Assessing Officers for the County of

[4:49:29] Kaua'i Real Property Tax Manager to attend

[4:49:32] the IAAO Governance Committee meeting,

[4:49:33] which will be held in Kansas City,

[4:49:36] Missouri on February 27-28, 2026, the

[4:49:39] meeting en sures that the County remains

[4:49:42] at foe front of industry standard and

[4:49:45] best practices, provides Mohawking

[4:49:46] with others, gains insights into the

[4:49:48] latest trends and developments in the

[4:49:51] field, and fosters relationships that

[4:49:52] can lead to future collaborations.

[4:49:54] >> Move to approve. >> Second.

[4:49:55] >> Any discussion or public testimony?

[4:49:59] Seeing none, all in favor say aye?

[4:50:00] >> Aye. >> Motion carried. Next item,

[4:50:02] please. >> On page 4, claim.

[4:50:06] C-2026-11, communication from the County

[4:50:07] Clerk transmitting a claim filed

[4:50:09] against the County of Kaua'i by Michael

[4:50:12] Scott for personal loss and injuries

[4:50:16] pursuant to Section 23.06, Charter of the

[4:50:17] County of Kaua'i.

[4:50:19] >> Move to refer to the County Attorney for disposition and

[4:50:23] report-back as necessary. >> Seg[STKPWHR*-PBLT/] moved

[4:50:24] and seconded. Any discussion or

[4:50:27] public testimony? Seeing none, all in

[4:50:28] favor say aye?

[4:50:29] >> Aye. >> Motion carried that

[4:50:32] concludes today agenda

[4:50:32] [ GAVEL ] thank you all.

County Council

Agenda

Transcript