we should bring this committee meeting for the council of the county of my week to order this is an hour but didn't find its committee meeting for may fifteenth two thousand and fifteen it is our one thirty agenda three items we have posted one is regarding b f one and i were to propose bills for an ordinance one is on the establishment of a county where its were replacement kept little improvement reserve fun and then the final item we will be taking testimony on members who will be for an ordinance proposal amending appendix a fiscal year two thousand and fifteen budget part t special purpose revenues schedule of revolving special funds for fiscal year two thousand and fifteen economic development revolving fun and this is as it pertains to the ferry so saying that a couple of things first for those that would like to give testimony please make yourself known as posted we shall provide every testimony three minutes to speak on their item and three minutes only we shall assist you with your time at the podium green light means please speak the yellow light means you have thirty seconds to conclude and the red light means please stop your comments we sh also ask that including ourselves all noise making devices be put on your silent or off mode  following mr davis is terry white us i applied for my business for the fun had the opportunity to bring a very unique software project here to maui and my project is in the medical software arena specifically a case management tool for complicated medical cases long term diabetes people coming out of hospitals who need to go to rehabilitation and the care has to be coronated across many different now doctors practices and  and facilities the jobs that i will create here with with this project range from part time administrative assistant to high level programming jobs that are you know far above the living wage create directly there's there's a trickle down effect to the rest of the community and some states have said that for high tech jobs such as these as many as five the other jobs are created cross the surrounding community in support of that him to clarify this is the money given mr coach a question for you mr chair are we going to be able to question the applicants when she item comes up or would this be the time to do that you know this is just terry white and i am here representing a group of concerned citizens would everyone please stand up this with cora thank you regarding their recent proposal to increase the core of fee structure by six hundred percent we would like the council to know that we understand and agree with the need for feast restructuring and that we have ideas to share and would like a seat at the table to be able to do so we ask for the opportunity to submit and discuss these options as all of the facts may not have been presented invented in reviewing the list of approximately one hundred eighteen permits issued to approximately thirty seven core businesses we thought it might be helpful to you if we clarified why it is that most business but most businesses hold multiple permits over the years we hear it said that core operators are quote hoarding unquote permits and wanted to share some history and information on this aspect of the core businesses when most of us started in business one permit covered all county beach parks operators were spread out about ten years ago many beach parks were closed to commercial operations operators were condensed to fewer locations and required to list locations they used and purchased individual permits for those so from one permit others emerged as a change of process and not the change of business practice the next step was breaking it down to require one permit per activity per beach park if a business offered surfing and windsurfing at the same beach park this required two permits instead of one this is the current model there most businesses have only a couple of sites that they use regularly it has been prudent for us to pay for and maintain the additional permits for the following reasons the ability to respond to weather surf conditions at any particular location by moving activities to another park the ability to respond to shark attack safety concerns or beach closures by moving activities to another park customer convenience a business that has a location and customers in the hina can't necessarily be taking them to key hate to use a beach park some parks are only available for use for a particular activity on a seasonal basis diversity many smaller operators offer unique experiences that go at different times in need different conditions and locations variety is blessed to have a very high percentage of yes one of the things that keeps them coming back is the ability to have new disappearances instead of a discipline the already enjoy dispersement are various ocean sports have standards which we must also add here to along with the county limitations on the number of instructors allowed at a given park per permit it is often the case that in order to meet both county and industry standards we must utilize multiple parks as i stated earlier week or permit holder supported the restructuring and have alternate alternative suggestions we would like to offer to council so i relinquish the floor to the next speaker thank you from their council we have mr william goa chairman of the trade and industry comedian us also from the office of the mayor and we have mr vincent but checco special assistant at large consulting on cultural affairs for the mayor and members of the council for hearing us today my name is patricia today as i'm here representing my business h s t and many concerned citizens if you would please stand those who are here thank you thank you thank you  we're here to give testimony regarding the sixfold increase in the core of fees we're not going to ask the council to please consider delaying that increase and forming a working group appointed by the council to discuss the issue thoroughly and so that all the facts can be  d and presented i'd like to start by addressing the notion that existing kora permit holders are preventing others from gaining permits i am keenly aware that there is pressure to provide permits to new comers i am also aware that there is pressure to limit commercial activity in the parks and you and i are caught in the middle it is an administrative policy to limit the number of permits it is not necessary to take a permit from an existing business to give a permit to a new business if i relinquish a permit there is no requirement or guarantee that it would be resold reissued to a new business and if parks does re a new to a new operator make no mistake that will be someone's livelihood and their impact will likely be much greater than my minimal use and minimal impact at an alternate park it's only going to give up maybe the parks that i don't use as much a conundrum to be sure i also like to address a comparison that was made between a kora beach park access permit poly beach kiosk comical kind of all the beaches fronted by multistory hotels and beach front restaurants in chatham rounds and hundreds of thousands of tourists walking the boardwalk each year the kiosk has both a retail and a rental component in addition to booking all manner of activities paying rent for a commercial location is in comparable to a kora permit for beach access only were prohibited for conducting any commercial activity in the park also the activities that we offer are radically different than the large kind of poly catamaran we don't have the market nor the volume nor the perfect weather our small activities generally require private or small group format for safety and quality experience thirty seconds it's an apples to oranges comparison the council should also be reminded that core operators even the smaller parks offer liability protection to the county because they give tourists the ocean safety guidance they need to avoid getting into that any type of trouble which might cause them to sue the county for failure to warn as has happened in the past putting ocean wrecked businesses out of business or concentrating them in prime parks does harm well beyond the business itself  holders i'm here to give testimony about the six fold increase in the corps permit fees or asking council to delay raising the fee until a working group appointed by the council can discuss this issue thoroughly as vetted as all the facts of the not been presented i believe the council we've been told that the kind of all the examples galvanized some policymakers to consider a request for proposal moment model there are problems with our f p s your piece create a renter versus owner mentality that's not the same as an owner who is committed to investing in his business committed to staffing relationships with vendors if you have a business and you could just lose your permit at the end of the year it  bother investing beach park activity are a piece of failed on a wall who leaving a void in service that business model has proved impractical and unfair to small businesses and invites corruption and it's a blight on the community furthermore ban loan money to a business that has no guarantee of ongoing operations are if p r a p s favor the large largest operators and corporations and creates businesses that are less connected and less he's and the county parks at least the free defacto lifeguard services the corps experienced instructors provide our of peace will also provide a concentration of activity and or our peace will reduce flexibility to accommodate changing weather service conditions and  it could jeopardize the safety of guests the biggest struggle with the permit issue has been the struggle to enforce the rules and laws in the parks are of peace and still have the same and foresman issues there's other potential fee restructure options deserves thoughtful consideration and examples such as a simple percentage of gross is that you know such disposed to us for ocean activities a sliding scale where companies primary beach park or activity is that a greater fe with alternate beach parks being at a lesser fee or perhaps a perhaps basis in closing the ask council to delay raising the corps if you permits the corps fee until a working group can get the issue thoroughly thank you thank you mrs th wishing to provide testimony this afternoon thank you when i eat office thank you very much more look great office right aloha thank you for giving us the time to testify i'm here to testify on behalf of maui brewing company for the economic development revolving fund i have a hand out this being passed out now it's a study submitted previously briefly in the case of hawaii alcoholic beverage industry there are two major benefits of localized production the first is major economic impact the hawaiian beer market was about one hundred twenty million dollars last year collectively and this includes a lot of imported  products of course the current impact of local production is fairly low compared to most other states we actually rank near the bottom of that there's a potential of up to three hundred sixty million dollars in additional g d p growth for hawaii by increasing localized production and this carries forward to other local products as well not just beer the reason i want to clarify that is that our company has just completed our new facility in key hay and we are looking to diversify into new product lines there are things we have not done in the past the reason we filed for the revolving fund was to use that those funds to leverage against our own money i think we had one of the highest leverage ratios we were putting in about eight hundred thousand dollars versus the two fifty from the grant in order to launch distilled spirits using local agricultural products as well as handcrafted sodas these are sodas free of any chemicals free of which is corn syrup and again using local agricultural products bring to brew those sodas we currently distribute in eleven states in five countries we're adding five more states and six more countries by the end of the summer so this is a economic export product that we can bring more dollars to  maui every time we buy a coca cola we buy a seven up we buy any other hansen's even a natural soda the moment we purchase those sodas that money leaves the county immediately and that's nights deposits why shouldn't we make more local products here to keep those jobs and keep that revenue here on island the other point to really clarify is there was some discussion of the grant funds that relative to our construction project in key hey we never applied for the grant to help us with this is to create new product lines we had separate financing that we put in in order to create the new brewing facility this is to create new product lines and be very clear that in no way is the grant funds to be used for any past projects job creation last time i st said here we had sixty seven employees we now have over ninety so i'm doing what i said i would do and i will continue to do that we are committed to the local production and we would love to see the support of the county to leverage our resources in order to launch these new product lines to give more attention to maui increase local spending made in maui products and bring attention to the agriculture i apologize i'm not going to be able to stick around for questioning hate that i have to say that but i brewers guild and today we have a meeting to shepherd new breweries into the state we have eight new breweries in the state we had eight breweries before and you have sixteen starting so we have a growing industry and we look forward to your support of that industry so thank you thank you mr meyer or any questions for the gentleman mr coach and mr chairman thank you mr mayor for being here you mentioned you have ninety positions now if this were to pass what is your anticipated growth in the number of positions you would have for these two specific products it's very difficult to break out just those products but we estimate between ten and fifteen jobs created by the soda and the  product lines that we cannot run concurrent with what we do already and that those are direct jobs those are my we bring company employees whereas we have indirect employees through distribution wholesalers retailers and except for truck drivers so a significant amount of  jobs and we were a growing company we pay family level wages for retirement benefits we match one hundred percent of the first four percent on for one k as well as a profit sharing plan for our employees and for health care of course as well so money goes back to our team this group of entrepreneurs the koran members faces many more risks and challenges their livelihood can be affected by bad weather shark attacks tourist seasons world events going on and on for example in the case of shark attacks where the beaches are closed a dive company may need to find another spot on the island to take their customers if there's no wind in canara the windsurfers would chase the wind to another spot on the island these conditions call for the need of multiple permits for these businesses plus many more very valid reasons which i believe will be presented to you in writing it is extremely important that we recognizes the importance of the cora members in serving our number one industry most tourists who choose to come to an island trac well trained experienced skilled and knowledgeable about the island thirty second the core operators also have to have safety skills rescue skills people skills management skill selling skills they need to be stable to provide a save experience and they don't do the same volume as a resort destination that with thousands of captured customers for example a scuba diver can only bring in four to six divers at one time so a huge rate increase would definitely hurt the small business owners so we ask you to reconsider and  meantime actually the time is a lot me to look at different ways to make this project better so i have different options depending on what you folks see today but it's still a key project for the really show the other business that hey this is a good time to invest in way too cool and also showed me that there's a great need for our restaurant sit down area that people just really want that badly for us to provide for them and we really look forward to making this project come true we still want to create more jobs we're looking at least ten to twelve more o'connell rodwell i want to emphasize that timing is everything in a small business and i just appreciate the fact that there cannot make development involving fund exists and we really appreciate their support and being part of this program  you know timing is everything on a number of fronts timing is also everything in medicine and i've been brought on to be the director of life sciences for a new biotech arm of new photonics and we are on the verge really of transforming human medicine and how can i make such a bold statement well we have the opportunity of removing gravity from the equation so all life on earth evolved under gravity conditions and we now have the ability to remove gravity from that equation and look at how cells behave how disease mechanisms operate without that part of the equation so it's a very exciting time for medicine but we're providing that ability through a program we're working on with nasa so we have the opportunity to build biotech capabilities in hawaii by our nasa program we just signed a space act agreement with nasa last week to provide a platform on the space station to enable such questions to be asked how does gravity how does microgravity interact with disease and this has not been able to this was not possible in the past because there haven't been the kinds of platforms that we can  build to support cells replicating over the over the course of a month and imaging those cells we actually approached us about the platform that we develop abt almost ten years ago now research on cancer and stem cells and drug toxicity studies we have this very powerful automated platform that actually my brother who is the c e o of h knew photonics he and i developed while i was assistant professor at stanford and we took that technology like and back to hawaii and we actually he developed it here in hawaii but brought me back on to the equation to help now take our technology that we patented and put it on the international space station and the support that we applied for in this program over really make this possible and again i want to stress that timing is everything in small business and this kind of local support is really critical to our program and thank you very much for your time thank you very much for your testimony members questions for the levy on testimony is and thank you very much for good afternoon everybody my name is mary the yang and i'm a graduate of the university of hawaii that's continuing to program in two thousand and seven through the aca my internship i was first introduced to each new and we began a very long fruitful relationship  through the tonics i was able to see many aspects of technology and have many opportunities in a high tech industry here on hawaii through a show i was able to work in the solar industry and to work on projects to support green energy and i was also able to learn about optical i meant design and which spurred me to get my master's in the university of arizona in the optical sciences and engineering department and i received that degree in twenty thirteen so after i had graduated i was looking for opportunities to come back to haunt you and each new was there to support me and i was able to come back and it was the right decision because i was able to continue with the  was very interested in also get introduced into the microphone and biology department at each new and exciting project that we have been working on is the nano point tower and this is a microphone system which caitlin was talking to you about and is used for cell culturing and we have a unique opportunity to repackage and send this power to the international space station to investigate the cellular behavior in microgravity and this is an area where we have actually more questions than answers the development of this project will be a challenge but each new staff is a highly qualified as our staff has many highly qualified individuals which  really a privilege to work with we also are able to develop this medical platform with nasa and along a site along a team of highly specified individuals and we can do that in hawaii so with this funding we can get this project working thank you for super thank you for your support thank you for your testimony any questions for the levy members thank you very much for being here ok good afternoon my name is michael and simon engineer at each new photonics i just want to talk a little bit about myself and my experience at h q and then about the the biotech project so i grew up on maui i've lived here since i was one and a half years old and went to st anthony's where i graduated at the top of my class and then i went on to cal tech which is one of the best math and science colleges in the country and with my first year there i decided that you know i realized how much i missed molly and i decided right then though that i wanted to come home so i graduated with a bachelor's degree in aeronautical engineering i came back here to maui took a little bit of time off and it up working as a drafter for electrical engineering drawings but i was really interested in something more cutting edge in high tech and i ended up finding out about each new photonics and when i first looked at their website i was just amazed at what they were doing even back then and i thought while they're doing these things on maui so i went in and i had an interview and i was impressed by their machine shop and their optics shop so i started working at h new in two thousand and eight back when they were you know fewer than ten people there and since then i've had the opportunity to do all kinds of things machines including c n c machining three d printing u to call alignment optical mccann and co engineering and now we're doing a lot of biotech and microfluidics research and the depth of expertise h new now is just really impressive i've been able to learn a lot of new things and i feel that the company's just really unique on maui to offer this kind of opportunity especially for a common a coming home like me so about the biotech project that caitlin ameri mentioned  our newest project is putting a system on the space station that we call the scorpio system and it's just you know it's it's an amazing opportunity tarde to imagine a bigger opportunity then you know the space station and this this scorpio system really provides a new capability to look at the cells while they're going into your gravity as caitlin described and this is really never been done before so you know everyone even at nasa is really excited so  thirty seconds so as a maori resident you know almost my entire life it's just made me really proud that we've been able to do this work here when i first got accepted into college i was really planning that i would end up on the mainland just because there didn't seem like that many opportunities here so i think each new has been really unique and i think the scorpio system in particular is a great source of pride for you know all value and i think it will really inspire future scientists reilly afternoon chair okama council members appreciate this opportunity all i can say listening to those guys is wow chicken skin i mean because it's just this is what our life is about combine to come home good living wage jobs stopping the brain drain educating the best and brightest here sending them to the mainland so they see our staff so i and president of each new frenetic so proud moment for me to see our young engineers that are being mentored daily by many of our ph d s getting to work with world class researchers who will come up here and say what it means to them means a lot to me and you know this just so humbled by an opportunity to partner with nasa to have a space act agreement signed by nasa to put our technology on the space station to do this research for medical discovery i mean this is this is exciting stuff and to have the opportunity to be backed by our home county here through the economic development revolving fund is very exciting to you and i served on american amik development board for many years so all members here understand economic development and how investments in the right places especially small business which is the backbone of a lot of this hiring michael as mentioned less than ten people when he joined us in two thousand and eight were over sixty people now and we are now working in partnering work in this that a two to one investment for the company in order to bring this in these technologies and so i think that's that's just you know very exciting to see a very proactive council administration that approve this already and really wants to see this kind of activity and job gro happen just here again i'm requesting the support of the whole council for this very exciting you have my word that this is going to pay huge dividends for the county so thank you for your time thank  members any questions on this just a morning show the rich are just if going to ask him if he's going to remain here for the discussion that we have a few questions to ask or somebody from your company unique destinations for our visitors as well i grew up on maui and have great memories of well you could town and i really like that the uptown service proposal is offering new ways to create new memories for anyone that is taking advantage of the town there it is truly going to be contributing to revitalizing that town and overall contributing to the community life creating another place for family and friends to gather in while look to town sound economic development policy calls for funding start ups you have done this through the small business revitalization grants under o e d and export oriented which means they draw new dollars into our county that are invested in our residents and in our properties as well the companies also help to carry the message that to the world that ma is serious about diversification and in fact we have world class capabilities here which you have heard of so i hope you will find the proposals worthy of your support and thank you very much thank you for  afternoon everybody in this may fifteenth one hundred fifty meeting of the budget and finance committee with all of these concerned citizens how exciting is this thank you thank you thank you i'm here on behalf the budget and finance item number one on today's agenda both of them having to do with water well no water by which all things find life and we are on the forty fourth year of the anniversary of the clean water and clean air act so we've had a long time to figure out how to maneuver and that's and i'm so pleased to see that it's the department of corporation council who has asked for these reserve funds i was one of the people who work on the up side of country oversight  never got a clear identification of how that money was spent we were not a five zero one c three so we were not involved in that end of it but we did learn i'm so excited about new people coming along and being excited themselves about being both from here and linking arms with folks whose backgrounds are from elsewhere good deal good deal look where we are in terms of our hospital stuff right now so i would just like us to make sure that we pay attention to the county charter some of you folks may not have had much opportunity to  deal with this and the reality of life on my way but this is the two fifteen edition and when we see about the director and the deputy director of the water supply talking about aged thirty to thirty two in here it says that the director of the department of porta supply so have a minimum of five years experience in a management capacity that doesn't say you know what and when you come over to thirty two it speaks about seconds that either the director or the deputy director should be an engineer if that ends up being an aeronautical engineer good for that person in that person's field that's not going to help us with the water we need to deal with this and at this i'd like to just point out in the small newspaper  well money for me p a and i'm fine millions of dollars and stay in the county this is somebody from the line aside who is asking that question and will the money be turned back into environmental improvement projects which is what has happened over on oahu with their violations of the clean air act so we have a little model here of moving in the right direction so let's let's get to that and just not keeping money just robins your time is up so if you have anything you'd like to submit we are happy to receive it sure members many questions for miss robbins on testimony presented  mean miss robbins thank you again for joining us david june good afternoon everyone i spoke to before i could talk for three hours but if you have three minutes so i'll do my best what's happening at this point with our ferry operation we're still trying to get the public utilities commission permission not to run on profitable routes are a long time company attorney is a maori attorney who used to work right next door has not been very effective  the one real positive thing we've done is we've retained probably the best p u c attorney in the state who is based out of honolulu and in steps away from the p u c's offices  do not reveal his name at this point it will be in all the filings he is working working on the issue now bottom line is we're trying to continue operation on profitable runs we hope to be a common carrier with the p c which grants us all the permits to operate in the harbor we have to meet all the different requirements from all the different agencies dealing our d o t coast guard and the p c it goes on and on one of the things i hadn't brought up and as i listened to all this talk about economic development and buy macadamia nuts and honey they stop at coffees of hawaii they buy coffee they have lunch at the mall a car i tell this is something we're talking about doing is something we have been doing for thirty years have an entire pile of current publications that are promoting visitors to molokai and our visitors on the ferry are well accepted there's no protests people of molokai appreciate having the ferry and they support it seconds it's a very positive thing for the island we need to keep this ferry going and this hundred five thousand dollars will help us while we try to get the pc's attention that's really what it boils down to states interested in transportation between counties county is interested in transportation between the departments trying to raise money or trying to just vet out what departments are being used with this hike in the fee what i do know is that combining industries like kayaking and windsurfing on the north shore kind of makes the process even harder because it's two separate things to different types of activities to different industries have their own concerns in their own challenges i don't know for raising the fees only way to vet out which permits are being used and which ones aren't we heard testimony earlier stating that some permits are used their full capacity and that by allowing those permits to be issued to somebody else then would be used at full capacity i know whenever these permits were set it was set with the understanding that they'd be used for the full capacity because that's what they're trying to do is put a cap this is the full capacity will cap it this so th permits that aren't being used to the full capacity that's preventing other companies like myself and others from having those permits and using to them to the full capacity i personally would be willing to pay three thousand dollars a year for a permit i don't know that that's necessarily the solution that we need here i think that further discussions could be had however i implore the county to if they have those discussions to to include non permit holders as well that way you can have a full unbiased conversation across the board there's been miss peak in the past about illegal operators that don't have corps permits i think the counties really aware of this and as it should be that a corps permit is only applicable at a county beach park there's many other operators who don't have corps permits on maui that are filling compliance with the state with iris the labor board everywhere else so in that we are no well definitely not illegal operators on this so again should there be conversations going forward i would employ the county to make sure that there are non perm holders there so they can have the full range and have an unbiased discussion thank you thank you any questions for the fire members everyone on thank you very much for your testimony this afternoon good to our district offices to resources that we can repair the county in our forecasts enough county requirements to meet those objectives so the first bill for an ordinance members that is before you is it as  amended the purpose is a funding upgrades to the sewer and waste water collection system and related improvements  is one you need seven votes to make anything happen it is a super majority requirement that the charter recommends for specific projects out of a reserve any questions on purpose members yes mr coach thank you mister as part of the purpose you talking about the seven members yes as you know quorum some time i mean attended sometimes is  tough at best it just comes concern about the number seven versus six why was there difference between the two i can understand six but why zero all the way to seven the convene for the original charter felt that this supermajority for specific types of emergency like emergency funds that were not things also majorities because it's a special purpose  so we can take the easy way out instead of doing the right thing so i would say it's more of a fiscal discipline discipline and for us my it's just my level of add to the fun of fund those continue to accumulate year to year in funds in the a reserve does not lapse or expire my less by special or more we make those changes there's also a provision under administration under three point one eight point zero three zero the ability for council to take funds from this special reserve fund and place it into the emergency fund for specific purposes that the charter expresses to for emergency purposes by that year has recommended that council be given th flexibility any questions members which there is one point i did want to bring up for discussion members and the ex for your input is that  from a financing standpoint if we consider allowing a language under purpose that it can also be used to fund debt service from projects paid for from this reserve it can be advantageous to us from a bond review on reading perspective that those agencies fear on those type of financial planning in advance for those type of debt service requirements that would be an advantage consideration in the proposed legislation and i think it would be appropriate chair thank you thank you director x a lot of any comments about the consideration of the debt service in the proposed bill for an ordinance to create the reserve thank you mr chair and i really appreciate if that would be corporator because in previous presentation with the prop bond traders they were least looking for an opportunity to look for their  consider that thank you they like you mentioned the bond readers to see that we have an another opportunity to pay that also and make sure that we have the ability to plan our service appropriately the along with this capital improvement presenting us with the opportunity for discussion on the capital improvement reserve funds creation it's allowed by charter in i think it's something that's very creative and will assist the administration in the future in planning for large  from project thank you thank you so i think it's just for clarification the concept is that the these funds could be transferred to the emergency fund if necessary correct but the purpose of the number c i'm sorry number b if you have unexpected unexpended balances in the county wide sewer replacement capital improvement reserve fund which is what this is going to be that they may be transferred to the emergency fund generally the whole idea was to keep unexpended balances in this fund so we can do capital improvement projects year after year possible so why would we want to be able to move it to the emergency fund i just am curious as to why that might my thing amos a coach's help in never comes but one day if we do they maybe need to meet those type of transfers to quickly respond to a regional community need for health and safety also i would say this just gives us additional tools for those very rare and hopefully never number of different factors including sewer fees but it's it has to be an unencumbered balance within the reserve fund the charter is very specific that you can't take sewer fees necessarily and you know raise the sewer fees and put it into this fun areas or say like the cesspool issue that's coming up statewide and something of that nature in that it's related improvement county wide you know this is a great point of similar similar type of question when i first reading this and understanding of sewer replacement capital improvement reserve fund the purpose is described that it's for the funding of upgrades to the sewer and waste water collection system and related improvements countywide so depending on how the council would want to choose to interpret that language in appropriate funds that could include expansion of the of the current  of the whole system that includes future improvements as well as and replacements but i am i appreciate you bringing up because it is not on the record that it is part of our consideration so you have any defines the appropriate uses for the emergency fund like you know to attach to fees or i you know i don't know is there are such an area that points to the zach usage of that type of money move we move into emergency mode which also loves those then to meet by from unification like telephone to make adoption of emergency appropriations but that is i believe after a declaration is crumbling into the ocean of a condo along the shore line is that an emergency i mean i'm not god forbid something of that nature happen but would that be in some people's eyes that would be a catastrophic emergency and their public health and welfare would be affected believe his his team of emergency response people with the civil defense administrator has a managing director i think chief of police would be involved fire chief would be involved i would assume the water director because of my water resources would be involves i would assume the mayor would make that determination and then declare the what the state would be if it's a true emergency or a state of caution is relatively open the charter is very broad also but on i would you know we have to look further into it at the time and again it's also the same it's a seven support of the idea of having a fund just think where we would be if we had talked about this twenty years ago so you know let's start every journey starts with a first step and i think it's a very good one it's prudent that we start putting away money because we can see where things are going so i'm in full support thank you thank you and i too want to voice my support in an and getting on the record the legislative intent just so that we have enough that said it mr cochran was talking about that look up to our sewer system i think this would be a good use for this fund it if necessary so i just want it on the record because i know legislative intent is very important and i've looked at minutes in  prior councils to see what legislative attempt is for certain language and in code so i just want to make sure that that's on the record that it looks like we all agree on that thank you very much anything else  see revised he leave it amended in the proposed before an audience regarding the sewer capital reserve fun afternoon so that we can actually say i want you to see the amendment you know that i would ask you to consider regarding the debt service component of the in the purpose as well as a clarification that it is also about the expansion should bring up at this point b f one twenty five which is the economic development revolving fund a revised proposal bill for consideration this afternoon if he has four  fifty thousand for each a new foot upon ix and the fourth consideration is two hundred fifty thousand for like to share on the mayor's revised proposal ok so you did receive a revised proposal because one of the projects and if i could back up and let you know that this process has been going on since april of last year or so or a little bit over a year into this process these companies all applied back in april of twenty fourteen and  one of the projects alpha that you originally presented had to move on with his opportunity or he was going to lose the opportunity so his project has dropped out and that is why we sent the proposed bill so are there questions for mr mchugh most of his project for his two hundred thousand dollar requests or for the offices two hundred thousand dollar requests you get a question for the gentleman yes thank you mr rocky moto you mentioned you think that might be ten to twelve more jobs and you also said you hit had some shifts in what was  sit down area so and half were storage in refrigeration and that way customers would come into the store and sit down versus going to a separate building to sit down and they need to reduce the be so that's the only change they were looking at so you would say the proposal that was given in the general language and i'm asking this because i i'm go the course of time from the time you started this project to a knowledge proposal it really has pointed out really clearly to me that well look who really needs us to expand an office some kind of sit being growing with competition but in the business side the competition also draws away from us so now we have to find ways to to grow our business so that with the if you're approved of this grant funds then what we find out in the meantime too is how expensive just permitting just to get a permanent portion would be you know a substantial amount so that took a lot of from the budget the next requests is for one hundred seventy five thousand my we you know ovation group has anybody there from that company yet why don't you come on down in  the members for mr davis any questions mr coach thank you mr chair and mr davis you talked about you're going to create high level programming jobs do you have an idea of how many are looking at  program you know not just from the from the but from the match as well and then support for me is the program manager for the project ok and you're talking about some sort of expansion yes so long term one of the big benefits of doing this project here is then we would be poised for support and additional versions of the software product and the future so what we're hoping is long term we may have something more like eighty jobs here out of it and  it has a compounding effect over time ok and that's my my concern that's a big jump between three to eighty and i know there's and that's just for support of the exists and  from from our partner company that's five hundred seventy five thousand that we're doing and to initial development and that's where the you know the four point five jobs including myself and then of course there's overhead and  leases and of other things involved with that but long term when we have paying customers for example if we had the software product ready our partner company plexus could have sold a million dollar copy of it just within the past three or four months have another question i would have is you talking about these other partners it's i thought i thought it was your project this said that you couldn't get it here you were thinking of shipping off the programming and whatnot to costa rica right one of these many years so i'm not sure almost a year i'm not sure if that has happened yet or if you get the funding are you able to keep them here yes we're able to keep the jobs here we have not shipped anything to costa rica we have been talking about doing testing support off shore if it comes to that simply because of funding constraints but nothing's been shipped away yet and certainly if we get the funding we can do all that here because i'm a little concerned about the word yet but i got the assurance that if you're able to get the funding you could keep we will keep it here absolutely we will absolutely do what's in the proposal ok thank you thank you you very much chair in thank you for being here you have a very interesting proposal here i know that medical software for case management is really not anything new i was in the business many years ago of doing the case management and i know how much money we spent on trying to get software that would you know let us talk to other people that were providing services and being careful about all the privacy concerns and whatever so easier to use much more scalable we're talking about having the capability of doing for example one hundred and fifty thousand members and so we could take on something like california medicare or medicaid system so this is as as a scalable easier to use to the insurance companies and h m o software basically verifies the claim and writes the check so to speak they have to partner with people like us that right now because they don't have an in house product to sell with there's this is why i say you know gosh if we were ready already you know we've done this by going back sooner we could have had that million dollar sale so so there are a lot of opportunities to to get something that you know going back to what's unique about this get something that's tightly coupled with the  with the claim side of the system and that doesn't exist right now right now it's one product from one company a different product from different a company thank you one that one my question to you know the county has already funded a you know out in the community of course we get talked to by a lot of our constituents who ask us why would you give somebody a grant and not have them pay it back what about some kind of a loan like a no interest loan what's your reaction to that well just to to reactions i think from a business standpoint the c d r of the program is really what allowed me to lure and the you know larger company partner for from the from the mainland i don't think just alone would do that if i put that aside just for a second and talk for more from a personal standpoint i have a big mortgage i have two kids who are going to college and a few years i probably wouldn't step up and borrow another hundred and seventy five thousand right now and i would say that you know somehow or make it through i make the software best i'd say it would be a shame for maui i mean gosh with you know a relatively modest investment outside companies this is going back to for example what jeanie said new money coming into the county for the hundred seventy five which is a grant and probably a grants only way i you know this person can do it right now we bring in four hundred thousand now and potentially millions and the future it  seems like a pretty good investment on both sides and i'm glad you you know had a good answer because you know it's that it's not just us we represent a lot of people and they don't hesitate to ask us those kind of question so we have to ask for everybody you certainly thank you thank you anyone who has another cochran and thank you mr davis for hanging out here so i'm not too i think mr coach and ms basis seem to know a little bit more about the product that you are looking to create and so i just want to little bit more clarification about what it is i guess  but basically so this type of software program you're seeing is to help places be in compliance with the fordable zero care act so this is i guess a new frontier for most medical facilities or people in order to be in compliance of some sort and you're the one to be creating this software for them to be using was  management software has been around for a while but you are correct there are requirements in the affordable care act that require this for places that didn't do that before and their requirements for example and i mentioned the medicare medicaid and california where it's a new requirement so it's an area that has a very big growth because of the affordable care act the program itself is to manage complex cases so if you imagine someone with diabetes and complications there are is not just one doctor at the going to take on the their case ditto for someone being released from the hospital a lot of times a program like this is used when someone is ready to go home from the hospital but if guess and second follow up question thank you i guess it depends on the size the facility or the user of the program what's what's the cost oh so that's sort of what i load it is sort of for a big installation it could be a million dollar  l some of the installations of the payment sites offer maybe on the order of six million dollars and this could be a million dollars add on to probably the cheapest installation and i'm not saying that you know no small doctor's practice whatever ones but probably the cheapest insulation we'd be looking at would be one hundred thousand dollars so a couple of sales would bring the money right back into the county ok well thank you very much thank you any other questions for  talking about some pretty fancy stuff and i know you're not sending patients up to the station to get acted out how does what you're doing up there affect down here a and b how many jobs from what what are what is happening now at your company would be involved if you got this fund sure that's a great question i apologize if i did get too technical and too big picture because that is what it comes right down to and it's actually a fairly lengthy response i'll cut that short but it transcends many different elements  cancer research the way cells differentiate under those kinds of conditions will enable discovery of these it will reduce the time for drug development this microfluidics platform in there and that's why there is so much pull from nasa and cases in the parties that are trying to do this research around the world i mean it's the international space station so that's what it's going to mean  it's going to you know help it's diagnostic platform for very precisely treating different kinds of cells you know cancer cells stem cell  are growing and as dr o'connell rodwell said earlier you know timing is everything we were scheduled to put this platform up in october two thousand and sixteen on space space x twelve that has now slipped into two thousand and seventeen we are going as quickly as we can to meet nasa as you know demands but we are self funding this right now and we can only go so fast so for us this grant really means acceleration it means trying to get back on to that schedule so we can bring this this research in these results that are really going to revolutionize you know all of those things cancer research home health care personal health care it's the cell that's what science is learning this is the the fundamental place where research is done and we have the technology to get in and conduct that research and we have the opportunity on the international space station to do it in an environment where one of the the primary challenges is dealing with gravity and how that affects things and so the research on the space station with all the astronauts and how you know their their you know muscular systems degenerate and so on it affects all these kinds of things it's fundamental medical research and we have now at the forefront of it it's is there heavy competition i guess for space or to be selected elected to be on this platform and is there a risk or chance of being booted off like i heavy competition to try to get one of those spaces nasa wanted this so much they gave us a double rack so it's twice what a typical ok they ran of cases who does the commercial side for nasa of everything they ran a solicitation back over two years ago for this technology and nobody had it they went to buy a conference in chicago april of two thousand and thirteen it would have been and that's where they quote unquote discovered us they said well you have a commercial product that does exactly what we need for this space station platform they reopened the solicitation just for us we submitted our white paper our proposal we went through a third party financial review technical review and that's what resulted in the space sector grima and it's so you know uncommon to have that kind of pull from nasa they they want this so badly because there is not another solution out there and we've had the patents on it we've been developing it and that's of so exciting about this so i guess the follow up care so the fall up as in you know you're not producing you're going to get booted off do you have like a certain time limit your loud you do your experiments i mean as there's competition and right now people wanting to be there are you may be saying hey you need to produce in the next couple of years or do they give you a timeline that's a family that's a question to you yes so it took a long time to get the space act agreement signed we've been back and forth for a year they you know they've they've approved it just got signed within the last week we have five years from that sign thing for that space act agreement to deploy and run that and it's extensible by five year increments we're going to own this platform that's that's what's different now is they're doing all the flight qualification but we are putting it up there and operating it and we are charging researchers on a pretty paper clip almost thing pay for space to run their experiments on it's a completely different pair you know paradigm for how to run this from an economic standpoint in fact we were on last year's nasa conference we were on a panel in entrepreneurship in space because of that because we're to go very well mr chair if if there's any questions on that particular project i think i could probably help with us ok that's fine so  so i just wanted to elaborate on the question of how the research on the space station will affect medicine on earth and that was your question i just wanted to address that a little more explicitly  what we're doing right now we have a contract with a stem cell company in georgia that we're developing a stem cell spinal cord model and what happens here on earth you know we're looking at parkinson's disease we're looking at autism spectrum disorder and how neurons stop working properly and we don't really understand how they do that why do they stop working and so by putting them in a situation where they're growing basically in the womb so in zero gravity conditions you can see how they're supposed to develop normally and then compare that with what's happening in gene expression now with neurons why do they break down we can ask those kinds of questions and we're starting to develop simulated microgravity conditions but being on the space station you can actually asked these questions and then translate them on the ground cancer genes express differently and in zero gravity we can do better drug targeting there's a lot of things that we can ask about medicine going on right here on earth on the space station thank you thank you very much  the monies were not to know what it was what he would know it's not that it won't have anything to do with the key have facility but he's saying it's nothing it's not funny anything that has already been built or purchased so in other words he these new lines are not not in existence now and he'll be creating them and i think what he's particularly excited about is working with the local farmers to incorporate the products you know into those in and i'm sorry mr chair if i could make one last statement about kind of the overall would that be sure ok i appreciate that i wanted to just make mention that and it really gets to the heart of what council woman biased was asking about how how does a county justify these grants this is an economic development fund the purpose that you set forth in the fund when you passed it every one of these companies meets the criteria for that we don't look at it as a grant because we asked them for a match so we're getting for every dollar that's being given out grant in this grant for these four projects they have come to the table with two point twelve two dollars and twelve cents so basically for our million dollars or eight hundred seventy five thousand dollars now we i will be getting two point one million in match from these companies so we have as a county leverage to this with private monies and i think that's what makes these projects so powerful notwithstanding the other benefits of a new pair role which is anywhere from one point seven million to two point two million a new payroll  export revenue coming into the county jobs diversifying our job base reinvesting and why lugar town we're just extremely excited about these projects and when i heard those young people that work for each new i'm tell you that really pulled at my heartstrings because that is the essence of what we want to do when we're talking about diversifying so with that i it's an all or nothing proposal that has been sent to us any questions for you chair before we move forward mr coach thank you mr chairs maybe not for you but maybe for m baez i know that in the original communication kind of communication fourteen dash two to three it has attached to it a list of the proposals and what the specific purposes are we're now going on this other communications that that isn't numbered would it be prudent to refer to that county communication in the  the to the actual budget yeah the office of economic development received those applications and they would be requiring the grantee to fulfill what they applied for right so  typically with every grant that we give out under o e d we work with the grantee on the timeline that fits for the fits that project but clearly these companies are chomping at the bit to get ready to go because they have been ready for now a year and so my expectation is that they will start immediately but you know there would be a process clearly so we will absolutely have a timeline we do in every one of our grants we have a period of individually and as you know they went to a review panel that we had established and they made it through that panel process we had many more applications than this but these are the ones that emerge d and then from that process they needed to be accepted by the mayor and then now it comes to the council for  you thank you any of the christians members mr ward thank you to your i think one of the questions i would have is onesies companies receive the funds what requirements are there for the companies to report back the results over one year to year three or five year period yeah we have explained to them that not only will there be met you know they'll be benchmarks along the way with their grant and each one again you know will be different at different time line based on their project but there will be benchmarks they'll need to report at those intervals and then we've also told them that there will be a follow up because we want to know the follow on  value of the grant and how the proposal ended up at probably the end of year whine year three year five you know probably track it out to year five i would say so that we could see what kind of growth came from that project how successful the project was and we can build that all into the the grant performance and agreements that we create for them ok and i don't know if i answered your question councilwoman they they applied separately they will each get a separate grant but the package that you're being presented today is all for together as a packet it but it's not one grand it will be four different grants the benchmarks is there i know we don't want to put penalties or any kind of hindrances on their projections but you know i mean we've got to make sure that they stick to the point and reach those benchmarks that they claim in their party points and what have you that they're going to do so did you go there to say you know if you hit certain you don't hit certain benchmarks or certain time or whatever you folks discuss and work because as you say  they have to do things in order to get the next step of funding and so many of our grants are just out right reimbursable grants so they've already had to spend the money to get the money so these  you know a little bit different than our typical grants that we give out now we do so we'll probably be a little bit more customized to how we work that but they absolutely will will have to show movement and performance and meet those benchmarks before they could get the second in command of funding or third and commander you know whatever well that's good and my next question can these same entities reapply again you know you supported us and hey we made some great improvements and we created this and you get your best bang for the buck a for us and we have another five hundred there that would only depend on if the council puts money back in the fund and if that was the kids they would have to reapply and they wouldn't be in the pool with every other applicant have to go through the entire process again they would because they got one round of funding is not going to give them an track to get a second round of funding thank you injure other christians thank you very much to your next thought about this for a very long time and i've had the opportunity to talk to a lot of people about it because a lot of people have a lot of attention in what we're doing here and one of the questions that was asked to me and i think it merits an answer was why are we doing these grants large grants and then when it's a small little companies like business development loans that are five ten fifteen twenty dollars and we make them pay it back they're all doing economic development and those grassroots loans you know are families on my way that are struggling and trying to find a way to start a business and we make them borrow at a high rate of interest but then we're going to give some business a big grant i think we need to address it i would say it is a reasonable question where the tax base so i would just see depending on our actions this afternoon we could actually be pick the phone today basically people have asked me and i don't know how to answer it i don't know the rant so i'm just putting it out there so people know we've thought about it mr chair could i respond to the spices mistress must say thank you your question is important because i want you to off feel comfortable in facing your public the economic i want to tell you one thing for sure is we have given out now twenty five different separate small business revitalization grants that has taken place over the last three years we just gave out another seven that will be announced shortly those are absolute outright grants but they also require a match those are a sixty forty scenario rather than a one to one which is this was so the business had to come up with forty percent and we gave sixty percent so we have given out twenty five of us so when you talk about the small business we i feel that we have taken care of them i mean we really have worked hard and we have really worked hard in our hardest hit communities of and i to make the program happen and our partner local he pacific has done a great job in doing outreach for that economic development takes place on multiple levels and your community  it does work with startups it works with small business but there's also room for economic development at the level of a company that is poised to go to the next level a company that is poised to do another great project and bring the kind of diversity exports and so forth it's not every company every small company that can export that just don't have the capital to do it but these companies do  and that's what's so exciting about it and the fact that they've come to the table with a two to one match not just what we required which was a one to one but they came to the table with a two to one match  i do not see this as a money during from out of county i see it as an investment and investment that is going to net you far far more than this million dollars far more than this now in dollars so i really urge your support for those because i think that we would love to show you the benefit that can happen from a program like this he thank you for that good to explain to us why we have to take these items as a package to individually because i i see here under see under the ordinance and he proposed appropriation be submitted to the council for approval as a budget appropriation in either an annual budget or a proposed amendment to the budget ordinance that doesn't limit the proposal coming from one of the members and later and under three point eight one point zero four zero use of the fun council appropriations from the economic development revolving fund show before the public purposes set forth  section three point eight one point zero two zero such appropriations may include authorizing grants or loans to any nonprofit or for profit organization leveraging funds provided by the federal state nonprofit above the done and then tell me that every president every proposal has to come to the council from the administration so no i understand that but i think the chairs question was are the chair statement was that we have to take this as presented to us as opposed to incorporating them into our our budget document for two thousand and sixteen i guess those are two separate matters one is the item in front of this committee today is a budget amendment and it's been a longstanding understanding that council does not  will ever understand that but i think what i was under the impression of was mr couches request was that we would incorporate these items into the two thousand and sixteen budget and in doing so we c based on application submitted to the economic office of economic development and transmitted to the council that was the framework that seems to be established by three point one right but but that doesn't preclude us from doing zero again it it was my advice that i just said it doesn't appear to it seems like a framework is set out and i want to see is couldn't do it i just see it appears that the framework is set out with a certain set up in mind  to make it stronger you could amend three point one to clearly allow for the council to make appropriations from the fun like other funds do that is my point so you agree that we have received a proposal from the office of economic development that the first part of that has been the first part of the requirement has been fulfilled well yes and sorry let me let me let me finish my question so we receive the proposal so that's compl with your understanding that they need to propose something to us if that's what your understanding is i'm not sure that i agree with that but we've we've received a proposal if we are acting on only the proposal as presented in a budget amendment then i agree we can't change the budget amendment but now that we receive the proposal seems to me that it's up to us to determine whether we deal with it as a budget amendment or as a budget edition because we have the proposal i think you the mayor presented you in a budget amendment that was his proposal soul and it was and as i mentioned when you guys are in the budget session it was never actually part of the it was never a proposal in the f y sixteen budget so technically you didn't have a proposal in the f y sixteen budget but we have a proposal from office of economic development and the administration i our determination whether we want to put it in the fiscal fifteen budget or the fiscal sixteen budget because the the budget is is our determination during its creation i agree that when we once we have finalized the sixteen budget we can't amend it without the mayor's proposal and we can amend budget amendments so to me the limitation would be and it's technical it's just the fact that three point eight one talks about a proposal being submitted to the council you have one in front of you in the form of a budget amendment which it seems we agree that you can amend and there was not one presented with the f y sixteen budget there was never a proposal summited with the f y sixteen budget so there for you if there was one included by charter the council does have the authority to provide saw amanda f y sixteen budget but there wasn't a proposal included to meet the three point one requirement so it's off i think you're splitting hairs but that's all right you know i made a proposal the proposal these things were proposed to us so i'll follow your direction on this a few  see it members when we do take up be if one at the council level part of what i'm recommending is referrals of special funds or revolving funds to the various standing fund in a deal with it anymore and just consider a specific request to committee in council for grants this is general fund money anyway so there's many ways to deal with this cat and chair i'm you know i'm supportive of the majority of the proposals it just doesn't seem correct to me correct to me but i may be wrong i've been wrong before and i'm sure i'll be wrong again thank chair thank you well that that's why disappointing taint mr whitaker gives us the best educated legal revolving funds in your committees and make your recommendations on whether or not we retain it we revise it oh we sunset it because we know some funds are not serving its purposes so we shall have  consider this all or nothing it is not my preference but it is the way it's been proposed unfortunately and we so we should deal with it in that manner i would just say that as the chair sees it i can appreciate the comments and questions from misplaced because you share has received them too particularly from other businesses that are paying this general fun is a great question that should be asked and we need to taking in consideration but these are for proposals that went through a process it has been vetted you have been told why it is a good consideration you've had an opportunity to ask questions to the applicants regarding the intended use what is the benefit or are they dish only employment opportunities for people and what is  component of revitalization to their community so the chair will entertain a motion to move this bill for an ordinance i mean appendix c fiscal year twenty fifteen budget for the  because i believe this council has the flexibility to do things of its own accord on issues like this my read of the ordinance  that we have the ability to do this as part of the two thousand and sixteen budget i prefer doing it that way i do believe that if the we can obviously change the the ordinance i don't believe it's necessary i see mr we're not in his head but it would only make him feel better me but that said if it's going to come to us in this fashion again then i'm not going to be supportive of placing more funds in this and this account so those are my thoughts i think several of the businesses that have come forward do provide a very significant opportunity for maui to be in the in the spotlight  i do have as a business it contributes a significant amount of money into the into the pot i do have my hesitations using money from one business to  provide grants to another so i am more comfortable with the revolving fund concept and i'd like to think that if some of these companies fall into the kinds of profits and expansion that they've spoken about that they may willingly provide some of the funds back to the revolving fund to make it a revolving fun so i'm i will vote in support of this and see where it goes from there and i hope the reporting will be very positive in the future and that will get the kinds of results that i th in very much agreement with mr white on this when it would have been better to do it individually i am in support of most of these actually all of these it was the other one that i didn't particularly care for if you look at and listen to what the folks have said there is a significant amount of income economic income back to the county for this and rasmussen said we through the office of economic development we already are giving grants to businesses maybe not at this to this scale but also on this scale there's a lot of  match requirements and it appears if you know everybody has pie in the sky dreams especially the one is actually going to be way up in the sky but they say that they're going to bring in more employees i would we have to start somewhere i'm i would love to keep track of these i'm hoping that we get to see the reports of how many jobs they actually bring in with these extra funds i know the one that's going to be exporting goods out to different countries even that's money that comes in to maui bringing in more high tech jobs from the you know the space guys and the programming that brings that circulates money in to maui so i think it's going to be well worth it  test to see if we can do this and bring in it's done all over the country so i don't see i think we can go to our continuous constituents and say look we're trying to bring an economic income to this county and this is the way to do it this is one of the ways to do it it's been proven in other states to work so i think we should give it a shot and if you know if we're totally wrong then lesson learned and it's kind of an expensive one but we've been like she said we've been doing it for businesses already for the last three years so i'm in full support of this at this time it would be nice to have it individual about pain it forward you know and that we we can actually make this a revolving fund but i think that we're you know wanting to give them a hand up and a leg up to to move forward as county and of themselves of course and our community as a whole but thereby give back to let the next person follow suit and do the same and be role models for the future so looking for it is seeing this grow i hear the concerns about it all and i to have those but i'm willing to give it a shot and see were it goes i mean we don't know this we try so thank you for that opportunity thank you misplace a thank you very much you know this is a very difficult decision for me i have really mixed feelings about it you know i read it makes me remember of the joke i've heard where this kind of situation is like watching your mother in law go over a cliff in your brand new you know you just told them both directions and you know you want to do the right thing and so you know i i was the one who brought up the issue of fairness but i also want to bring up fairness to the uptick and applicants have been through a very difficult situation here they applied in good faith they have hung in here with us and waited and waited and waited and i know how horrible that can be when you're trying to make plans for your business and so  i also want to say that you know i don't compare this to the ferry issue the ferry issue is a separate business and we're not having to look at four fair is going to looking at one so it's much easier when you're only looking at one company and you know just not having to we had along with i got to go for all four even though i really like number one or number two and i do really not i'm not that supportive of the other so i don't like the package deal and i am going to say that if this package deal comes before me again i will vote no because i don't i think it takes away our legislative discretion and that's why we ran for office we ran for office so we could make tough decisions and stand by them but i don't think having to do this kind of thing is what we had in mind so i'm going to support it in fairness to the applicants who i think have waited long enough and god bless them they got in at the right time and you're going to get under the wire i don't know wholehearted was going to be in the future but i will do it for that and i also support everything that archer has said thank you thank you ms proposal thank you you know i feel quite awkward because the next item is requesting f supporting this package but that's that's what's really awkward it's a package it's like take it all or none none at all  the other part to me is where are the rules or who've sets up the policies that we have a definite follow through and we were able to receive the be sort of adds a little credibility for me it would have been better if we could bring it forth in the twenty sixty budget but i guess that's probably not alone but for now we'll support that and see how we move forward thank you for the discussion members just a victory no thank you and i've been very visibly quiet because everybody else did all the talking and thank you very much they covered all the points and then some but my mother in law would see even i let my cadillac go over the cliff i have my mother in law so let's leave that want to know bad choice of choices me myself but that's me just i know but i say what i would not let my mother look at i love her very dearly and you know with that being said i agree that this is a opportunity and i too have had the same questions mr all of us i think you've held in and in the community you've got i had those questions asked of you however because of the questions i have two reasons why i will step aside and i thought it all first reason is one of these businesses has helped my son's nonprofit he's his foundation so i cannot we're conscious of all because for me that's a conflict of interest and i putting that run on the table secondly on my immediate board members and i cannot force those two reasons i am going to walk out and not vote on this matter unless you see otherwise mr chairman but i cannot because of those two factors that's fine mr victor in a ditch or appreciates you declaring that  potential conflict of interest but the chair will say that in my view the entity that supported your son's nonprofit foundation in no way has direct financial impact on you so i would do that it would be no conflict of interest from my point of view in viewing a foundation sprit specter of in a relationship with a business it was not a personal transit it's a nonprofit and  business thing that i guess is more under a charity or benevolent consideration or humanitarian consideration under i r s tax laws i would state that in my point of view i do not view that is the  rule that you are allowed to vote and participate in this decision mr victoria and i but again i thank you for bringing up a potential concern for you for that shows really i feel that there is no conflict and you can participate fully thank you too i just wanted that known to all the members and don't think public in general thank you as i have always worked on being above board not doing something that someone could say something to the contrary think if you allow me and says the council can make appropriations from this fund not just appropriate money into the fund such appropriations may include authorizing grants but tells me the council has the ability not only to appropriate monies from but also to authorize grants that means from the way i read this we have the specific authority to do what members thank you we shall move forward we have a few more requirements to finish for the day let me please to ricky to be f thirty seven b if thirty seven is  thousand and fifteen budget under revolving special funds economy development revolving fund we have a bill for it ordinance proposal requesting one hundred five thousand ok so what you have before you is an ordinance from the mayor a budget amendment i'm sorry but that amendment from the mayor and basically  he was honoring the wishes of the council that sent that sent the resolution to him and he lowered the amount of the original request from five hundred thousand to one hundred five thousand and that was specifically to after interviewing mr john we determine from him that his operating losses are at the tune of about thirty five thousand dollars per month and this would give him three months of operating funds for him to be able to find a way forward basically and one of those things that he's looking at is a p c filing that he has put forward to allow him more flexibility and changing the schedule so that he can operate again at least a break even and possibly be in the black so it's kind a a gap funding you might say for him to find a way forward with the p c and you heard from him today that he has hired a top notch attorney to help guide him through that process just to help his case basically so and he is here of course for any questions you might have we've spent a lot of time speaking with with him and finding out his situation and it is pretty dire actually it's it's pretty critical so i think the section is appropriate and we certainly don't want to lose another transportation if the hundred five thousand comes through for us i also would like to thank the administration for their support yes we are and daryn me i can appreciate the mr junks serving our island for over thirty years in transporting and helping our employees or people who work here on my we do commute back and forth so i can appreciate that i realize the numbers are not what it used to be i also recognize that yes i'd like to support the schedule change for the p u c but i've had a meeting with mr junger and instead like to have more conversations because in somewhat i think our community needs assurance that the local community will be able to have the affordable  transportation and will also continue to have the availability to overnight costs whether it's or more participate in different extracurricular you but i know that this will kind of give us some saving grace i guess if that's what we need at this point and hopefully we can receive something very strategic from mr jones and his company as to how this investment will sustain sustain his operations for for colleague's consideration to support the amendment that is coming through from the administration one hundred five thousand dollars from this so called revolving f because of the urgency but i thought we were preserving this hundred five thousand were preserved that two trips a day and i know he testified and you mentioned that looking for more profitable route the whole idea was to preserve the two trips a day it is my understanding but now maybe i'm wrong ok now i know it's not going to preserve it will for a period of time for about three months he has filed with the p c to reduce the two round trips per day to one per day and and he feels that that will put him on a more sustainable course now he has said that on the weekends if the teams need to come they can charter his ferry and he will continue to offer that that is what he has told us  he is the p c is putting up road blocks for him to be able to i mean they have refused to act on this basically and so the bleeding continues unfortunately and when you're under a p c schedule you mean you do what the what you've said to the p s c that you're going to do what you don't want to see happen is to force a bankruptcy here because then there's nothing left and so he's trying to work with the p c to come up with a new revised schedule that will help him be sustainable and that has not happened yet and they're not willing to hear him and maybe they will now that he has an attorney and this gives him basically three months of operating is what it is what it does it helps him get to that p filing where they might support a more sustainable system that he can operate under his threat has been more air seats coming in to molokai and also cheaper air seas that have been coming into now i don't know i haven't looked at the price of air seats but he said that there's some competition going on there and so the price of the seats have come down now we know that that could all disappear in another six months and it could go back up to high prices and then more people will ride the ferry but unfortunately that's not much consolation for him right now when he's operating under these market conditions right now you know their air seats are more forth mr chair that brings up a ton more questions but i'll just ask you if we can put a request to a committee whether be transportation or whatever committee is a ppropriate that we discuss this the whole idea of a ferry back by the county as a matter of transportation since we are county with three islands and the only way you know we have a bus system but you can have a bus system to learn i e or molokai e so that we have a ferry system and is it something that the county should get involved in at all or which i think might be beneficial but but that's a lot of discussion and we need to have another committee because it's a little bit different from this guy but i don't want to fund something that eventually we're going to is going to go away or be different from what the island needs or the whole county needs it's my understanding that we need t trips a day or at least at at a reasonable request for the teams to go back and forth and i've had questions of saying well how come we're not doing an r p for for funding to provide some sort of service to molokai or lanai for that matter but the loan i want is a private business and they're doing they're making money apparently i know molokai is harder to get to and more rough but i think it is a vital link and i think to change the schedule would be very difficult and that's why i would like to discuss that in another transportation but if we careful what you ask for takes a lot of money yeah ok oh a lot of money that we currently don't have the what is the schedule for that you know he did tell me it leaves later he leaves later in the morning right now he takes it or flick of from molokai am sorry right now it goes like a five o'clock in the morning and it has all evolved through the years but the early morning run and late return was done at the request of governor where hey and at that time he was giving us thirty thousand dollars a month to make that trip happen and when we were talking with council member crew fellow that's where her figure came from the half a million to say that would basically cover replace that fund that the state had taken away that was a deep bed fund just and that's where that that's where that number of originally came from is of the essence for me what what what time are you proposing for this one trip a day at this point we would like to go to part in the morning at seven a m seven comeback at five p m the vessel would lay in a moment in the maintenance would be done in preserve jobs and militant but it would primarily handle day trip business to molokai on the weekends when we have high rush numbers then we we had written into the have the ability to add the extra trips to come back and forth the schedule was a ridge and we built around a group of commuters so the whole schedule was built around that started with one hundred fifty people we and we've dealt with the same attorney for twenty five years a maui attorney we have a new well can do us a well connected we have a new experienced attorney and the concept working out now is being what's called a common carrier as a scheduled carrier a schedule carrier has to run the run if you've got one passenger you have to run the run so we want to be a common carrier we have a minimum and for school groups deal or something i gave my word to the mayor that we would run through april may and june and if we could if we could cut our expenses little bit or the numbers went up or down we could adjust it six round trips twelve trips shades of go where lines ok let me try one more time ok if we give you the subsidy the schedule that we will be funding for you to continue for the next three months is what exists now right currently today ok we'll be through july first ok thank you that's clear for me thank you put a real damper on on a lot of kids or doll that the teams have to stay overnight you know they have to i mean the day before to stay over night to participate in that date and then go back the next evening and we would be able to if the p c would approve what we're asking yeah we would be able to put those special trips on when we had those teams so they wouldn't get stuck overnight that's why i might be concerned because there's a number of programs not only  you going to see june july august or you still see april may june we made the agreement with the mayor while back and it's been dragging on so i can't i can't if i can i of thank you so just to clarify into my last conversation with you you have at least twenty five to thirty visitors that also utilizes the ferry ok so that's when th you also recognize that the airlines today may offer thirty nine i commute on the airlines and it's thirty nine today but tomorrow is as high as ninety to one hundred  are different permits issued by that deal and are we do joint marketing with our different companies the monies separate the joint marketing is allocated out so when you look at some of the advertising we do we do joint advertising does well how much like trilogy company actually has separate corporations  this is the ferry the ferry is separate line a cruise company is the turf side that package is much like robert's overnighter would buy a hotel an airfare and it markets it and it sells it to the different activity agencies for the ferry to do it by itself would be impossible because of the structure of the  so is buying a cruise company the holding company for sea link of hoyo it market said it doesn't own it markets so it is not the parent company it has a relation but it's their separate corporation i would say there is a relationship there know that's what i'm trying to figure out if you or part of a bigger entity than what is your bigger entity doing to support you well the bigger entity has loaned the money to keep the ferry running the ferry has not over the last six years the ferry has just broken even though i reviewed your annual reports for the last five years so i know your numbers and we would like to give the ferry to the county but really just i really would really like to give the ferry to the county and the counties in point i think the mayor has put forth a reasonable request i can tell you but i'll be very candid when i can support this hundred fifty thousand dollars requests which will be basically almost completely depleting the fund if we approve everything this afternoon but i would not support a continuation of a dead whole ok let me just not in the practice of subsidizing something they cannot work so will allow mr jr and his company the best opportunity to see if they can  support this requests at this time but nothing for them so i am hoping to be a motion to move forward to the council a bill for an ordinance two thousand and fifteen budget for the county of my we as it pertains to part two special purpose revenues schedule of revolving special funds for fiscal year two thousand and fifteen economic development revolving fund and am one hundred five is now for the funding the replacement or expansion of infrastructure for the county sewer and wastewater collection system and related improvements and debt putting that consideration before the committee it was a very good suggestion and i mr bud's of support any questions the ordinance i may need title three where we county code as stablish in a county wide sewer capital improvement reserve fund as presented in this afternoon's revision mr white so moved the chair will entertain a motion for the establishment of the upcountry water system expansion kept but improvement reserve fund this is a proposed revised bill for consideration so a bill for an audience of many titled three establishing it up when she wanted a system expansion capital improvement reserve fund mr white so moved chair second was the chair thank you