Budget Finance Economic Development Committee Meeting - December 16, 2025

The Budget Finance Economic Development Committee convened on December 16, 2025, at 9:03 AM to address two primary agenda items: a budget transfer within the Department of Public Works for fiscal year 26 and amendments to the fiscal year 26 budget regarding the Lahaina Wastewater Reclamation Facility upgrades. The meeting proceeded with brief public testimony from two citizens and concluded with the unanimous passage of all proposed resolutions and bills.

Consent Calendar

• None. (Agenda items were processed under Discussion Items).

Public Comments & Testimony

• Kashiwa Sugimura: Expressed full support for the importance of the Lahaina treatment plant sludge operations. Specifically thanked the tank truck drivers and the Department of Public Works. Asked for clarification regarding a reported $3 million grant from the US EPA for purchasing land for recycle centers in Lahaina. (No response to the specific land purchase question was recorded in the transcript, but the speaker's intent was noted).
• James Langford: Stated concurrence with the agenda items. Noted that he had provided data on a Facebook page regarding the mathematics of the agenda but offered no further verbal testimony or position beyond this acknowledgment.

Discussion Items

BFED 13 Resolution 25-221: Public Works Budget Transfer

• Proposal: A transfer of $220,000 in unencumbered balances within the Department of Public Works to cover unforeseen costs. The funds are sourced from $145,000 in savings from the Road, Bridge, and Drainage Maintenance Program (9 vacant positions) and $75,000 from the Traffic Management Program.
• Positions & Clarifications:
  • Deputy Director Paul Barney stated the funds cover repairs for vehicles damaged in accidents and replacements for end-of-life signal equipment. He confirmed that the work will not be delayed despite the transfer from salary budgets because sufficient remaining A-funds exist to pay for the positions if they are filled.
  • Councilmember Elizabeth Cook: Expressed support and noted understanding of the utilization of funds to cover immediate needs. Asked if the funds could be used for speed bumps at the Lumlung boat ramp; Deputy Director confirmed speed humps are in engineering works but this specific operational fund would not directly apply.
  • Councilmember Rollins Fernandez: Expressed curiosity regarding why the item was referred to committee rather than being passed on first reading at full council, though no opposition was expressed to the item itself. Asked about the impact of transferring salary funds on operations; Deputy Director clarified that the positions have been vacant and recruitment is active.
  • Councilmember Palton: Expressed interest in using funds for speed bumps on the Hana Highway due to blind hills and tourist traffic. Clarified that the wall on Highway 30 is a State issue, not a County issue. Asked if funds could be used for Honoapiilani Highway improvements; Deputy Director clarified that these funds are operational and cannot be cross-overed to Capital Improvement Projects (CIP).
  • Councilmember Jose Sonancy: Asked about insurance proceeds for accidents; Director Maria Zelinski explained that proceeds come through county-wide self-insurance and do not benefit the Department of Public Works directly.

BFED 12 Bills 2025-177 and 178: Lahaina Wastewater Facility Upgrades

• Proposal: Approving an Intergovernmental Agreement for a $22,409,000 loan from the State Water Pollution Control Revolving Fund (SRF) to upgrade the return activated sludge and dewatering systems at the Lahaina facility. Bill 178 amends the FY26 budget to appropriate the loan. The loan is eligible for 100% principal forgiveness.
• Positions & Clarifications:
  • Director Agawa: Described the project as replacing aging concrete and centrifuges to remove solids and improve efficiency. Stated that the timeline involves sending notice to proceed in January 2026, with an estimated duration of 18 months to two years. Expressed assurance that no external permits are required as the work is within the facility.
  • Councilmember Elizabeth Cook: Expressed support for the project details. Asked about new technologies; Director Agawa confirmed the project involves upgraded centrifuges for better efficiency and reduced electricity usage. Asked about the timeline; Director Agawa provided the Jan 2026 start and 18-24 month duration.
  • Councilmember Jose Sonancy: Asked if the loan would be repaid with departmental funding; Director Agawa clarified that the loan is 100% principal forgiveness and standard repayment via rates and fees applies only to the non-forgiven portion (if any) or as per standard SRF protocols.
  • General Sentiment: Councilmembers Cook, Fernandez, Palton, Lee, and Sonancy expressed support for the straightforward nature of the budget amendment. Councilmember Johnson was absent but excused.

Key Outcomes

• Adoption of Resolution 25-221: Passed by a vote of 7 in favor, 0 against (1 Member Johnson excused). The amendment transfers $220,000 for Public Works vehicle repairs and signal equipment replacement.
• Passage of Bills 177 and 178-2025: Passed by a vote of 7 in favor, 0 against (1 Member U. Hodgins excused). The bills authorize a $22.4 million SRF loan for the Lahaina Wastewater facility upgrades with 100% principal forgiveness.
• Meeting Adjournment: The meeting adjourned at 9:34 AM.