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Record of Proceedings

Communications, Reports and Council Oversight Committee Meeting - March 17, 2026

County Council & Committees — Tuesday, March 17, 2026

BodyHawaii County, Hawaii

SessionCounty Council & Committees

DateTuesday, March 17, 2026

StatusFILED

Video Record

0:00 / 57:19

Transcript — VerbatimClick a timed line to jump · ⧉ to share it

0:01

Aloha, ladies and gentlemen, and welcome to the 18th session on communications reports and council oversight committee.

0:08

Today we're in the Westwise Civic Center.

0:11

The date is March 17th, 2026.

0:14

The time right now is 2 p.m.

0:18

In attendance here in Kona Chambers.

0:21

We have Councilmember James Houstis, Councilmember Fresh O Nishi, Council Chair, Holaka Inaba, myself, Rebecca Viegas, Vice Chair of this committee joining us from Hilo.

0:35

We have Councilmember and Chair of this committee, Jennifer Kagiwada, Councilmember Ashley Kirkowitz, and Councilmember Michelle Galimba is excused today.

0:48

Council members Matt Connelly Kleinfelder.

0:53

Oh, sorry, this is Michelle's committee, not Jen's committee.

0:58

Excuse just for a moment, our council members Matt Canieli E.

1:02

Kleinfelder and Heather Kimball.

1:07

And with that, we'll call this meeting to order.

1:13

And Mr.

1:14

Hendricks, go ahead and get us started.

1:17

Thank you, Vice Chair Viegas.

1:18

I understand we do have a testifier either by Zoom or at a courtesy site.

1:22

So Mr.

1:22

Aracelli, can you help us out with that?

1:25

Thank you so much, Mr.

1:26

Clerk.

1:27

Madam Chair, we do have one testifier via Zoom that we're aware of, Susie Osborne testifying on communication 757.

1:34

Susie, when you're ready to begin, if you could just introduce yourself and you'll have three minutes.

1:38

Thank you very much.

1:39

Aloha Maika Ko, Aloha Cherry Naba, and esteemed council members.

1:43

Um thank you for hearing my testimony today on communication 757 regarding the annual Ponc report that has um you have received from the mayor's office.

1:54

I just want to strongly support this initiative with a special emphasis on the number three Kumukahi property.

2:01

I think we all um are very well aware of the incredible significance of this easternmost point of our um Paina and the cultural significance of this uh special place.

2:14

So um I really hope that you will consider moving all of these properties forward and uh thank you for your consideration.

2:21

Mahalo Nui.

2:23

Thank you so much for your testimony.

2:25

And with that, I'd like to just take the opportunity to ask if there are any other testifiers either via Zoom or at our remote sites if they would like to testify at this time.

2:33

Please recognize yourselves.

2:38

Hearing none, Chair, those seem to be all the testifiers you have.

2:49

Top of the agenda?

2:51

Yes, okay.

2:51

Thank you.

2:52

Very good.

2:52

Uh communication 35.5 is a quarterly affordable housing report, October 1, 2025 through December 31, 2025 from housing administrator Keolani M.

3:02

Costa, dated February 27, 2026.

3:05

Transmitted the report pursuant to section 11-19 of the Hawaii Council Code.

3:10

Motion to close file on communication 35.5.

3:14

It's been moved by Councilmember Inaba and seconded by Councilmember Houstis.

3:20

Do we have representative from housing joining us from Hilo today?

3:25

Administrator Costa should be joining.

3:29

She there in Hilo Chambers.

3:32

She is not.

3:34

Oh, gotcha.

3:36

All right.

3:36

Welcome.

3:37

Please go ahead and come on up.

3:40

Just state your name for the record.

3:45

Good morning or good afternoon.

3:47

My name is Ann Bailey, and I'm with the Office of Housing and Community Development.

3:53

And I'm here this morning to answer any questions regarding the communication.

4:02

This is our affordable housing quarterly report for the period of October 1 through December 31, 2025.

4:12

I think there's a couple of notable items.

4:16

One is that the excess credit uh balance has changed.

4:20

Um, we were able to award uh 28.5 excess credits to A0674 Kaiulu Owaloa LP.

4:32

This is the project that was built by them called Kaulu O Waikaloa.

4:37

They built 60 units in the Waikaloa village area on property owned by the County of Hawaii.

Discussion Breakdown — Share of Meeting

Capital Improvement Projects████████████████████20%

Public Access Open Space████████████████16%

Public Private Partnerships███████████████15%

Affordable Housing█████████████13%

Public Health██████████10%

Zoning And Land Use█████████9%

Procedural██████6%

Healthcare Facilities████4%

Budget Equity Analysis███3%

Summary of Proceedings

Communications, Reports and Council Oversight Committee Meeting - March 17, 2026

The Communications, Reports and Council Oversight Committee met on March 17, 2026 at 2:00 PM in the Westwise Civic Center, Kona Chambers, with Vice Chair Rebecca Viegas presiding. Councilmembers present: James Houstis, Fresh O Nishi, Holaka Inaba, Jennifer Kagiwada, Ashley Kirkowitz, Matt Canieli E. Kleinfelder, and Heather Kimball. Councilmember Michelle Galimba was excused. The committee heard one public testimony and discussed four communications, all of which were closed by unanimous vote.

Public Comments & Testimony

Susie Osborne testified via Zoom on Communication 757 (PONC annual report), strongly supporting the initiative with special emphasis on the Kumukahi property (easternmost point) and its cultural significance.

Discussion Items

Communication 35.5 – Affordable Housing Quarterly Report (Oct 1 – Dec 31, 2025)
- Presented by Ann Bailey of OHCD. Key updates: 28.5 excess credits awarded to Kaulu O Waikaloa (60 units, $84M project, now leasing); 41 pre-awarded credits for the Westview Project were zeroed out (no housing built). Total new affordable units: 158 (148 reported, discrepancy noted as “gosh, what did I say? 140 plus 18. So 158.”). Councilmembers praised the report and noted the importance of tracking credits. Motion to close file carried 8-0 (1 excused).
Communication 757 – PONC Annual Report
- Ben Shapiro, PONC Program Manager, presented. The report recommends seven properties for potential acquisition. A new nomination question asked if property owners were aware/agreeable to nomination. Councilmember Kirkowitz inquired about owner willingness; Shapiro stated finance has not yet engaged owners but plans to in future cycles. Council expressed gratitude to the commission. Motion to close file carried 8-0.
Communication 758 – Fair Share Report as of June 30, 2025
- Presented by Bethany Morrison (Long Range Planning). Noted that lapsed appropriations return to the fund for future projects in the same judicial district. Councilmember Houstis questioned on lapsed funds (e.g., $20,000 for lifeguard towers in South Kohala lapsed over 10 years; $5.6 million lapsed in North Kona parks). Councilmember Inaba requested more timely reporting and suggested semi-annual reports. Councilmember Onishi questioned consistency in payment triggers for rezone ordinances. Motion to close file carried 8-0.
Communication 759 – Queens Health Presentation on West Hawaii Hospital and Outpatient Center
- Jason Chang (CEO, Queens Health Systems) and Clayton McGann (CEO, West Hawaii Region, HHSC) presented. Key details: New hospital (estimated $560M) and outpatient care center ($100M) planned in North Kona. Public-private partnership: Queens to build hospital, donate land for outpatient center (50,000+ sq ft). Total project: ~$660M. State funding request: $50M supplemental, $50M biennium. Workforce housing planned. Groundbreaking anticipated within 12 months (2027). Councilmembers expressed strong support and offered assistance with state budget. Motion to close file carried 8-0.

Key Outcomes

All four communications (35.5, 757, 758, 759) were closed by unanimous vote (8 ayes, 1 excused).
Committee requested improved timeliness and clarity of Fair Share reporting; staff to explore semi-annual reports and inclusion of expenditure data.
Council pledged support for state funding requests related to the Queens West Hawaii Hospital project.
The next meeting (Finance Committee) was scheduled to begin at 3:30 PM.

Meeting Transcript

Aloha, ladies and gentlemen, and welcome to the 18th session on communications reports and council oversight committee. Today we're in the Westwise Civic Center. The date is March 17th, 2026. The time right now is 2 p.m. In attendance here in Kona Chambers. We have Councilmember James Houstis, Councilmember Fresh O Nishi, Council Chair, Holaka Inaba, myself, Rebecca Viegas, Vice Chair of this committee joining us from Hilo. We have Councilmember and Chair of this committee, Jennifer Kagiwada, Councilmember Ashley Kirkowitz, and Councilmember Michelle Galimba is excused today. Council members Matt Connelly Kleinfelder. Oh, sorry, this is Michelle's committee, not Jen's committee. Excuse just for a moment, our council members Matt Canieli E. Kleinfelder and Heather Kimball. And with that, we'll call this meeting to order. And Mr. Hendricks, go ahead and get us started. Thank you, Vice Chair Viegas. I understand we do have a testifier either by Zoom or at a courtesy site. So Mr. Aracelli, can you help us out with that? Thank you so much, Mr. Clerk. Madam Chair, we do have one testifier via Zoom that we're aware of, Susie Osborne testifying on communication 757. Susie, when you're ready to begin, if you could just introduce yourself and you'll have three minutes. Thank you very much. Aloha Maika Ko, Aloha Cherry Naba, and esteemed council members. Um thank you for hearing my testimony today on communication 757 regarding the annual Ponc report that has um you have received from the mayor's office. I just want to strongly support this initiative with a special emphasis on the number three Kumukahi property. I think we all um are very well aware of the incredible significance of this easternmost point of our um Paina and the cultural significance of this uh special place. So um I really hope that you will consider moving all of these properties forward and uh thank you for your consideration. Mahalo Nui. Thank you so much for your testimony. And with that, I'd like to just take the opportunity to ask if there are any other testifiers either via Zoom or at our remote sites if they would like to testify at this time. Please recognize yourselves. Hearing none, Chair, those seem to be all the testifiers you have. Top of the agenda? Yes, okay. Thank you. Very good. Uh communication 35.5 is a quarterly affordable housing report, October 1, 2025 through December 31, 2025 from housing administrator Keolani M. Costa, dated February 27, 2026. Transmitted the report pursuant to section 11-19 of the Hawaii Council Code. Motion to close file on communication 35.5. It's been moved by Councilmember Inaba and seconded by Councilmember Houstis. Do we have representative from housing joining us from Hilo today? Administrator Costa should be joining. She there in Hilo Chambers. She is not. Oh, gotcha. All right. Welcome. Please go ahead and come on up.

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