Budget Finance Economic Development Committee Meeting – June 24, 2026

The Budget Finance Economic Development Committee (BFED) met on June 24, 2026, at 9:03 a.m., recessed for a training session, and reconvened at 11:02 a.m. The committee considered two agenda items: a resolution authorizing a tax‑exempt lease purchase agreement with TD Equipment Finance Inc. for the Johnson Controls energy performance contract (Phase 3), and a bill amending the Maui County Code to establish uniform administrative rules for the county grants program. Both items advanced out of committee.

Public Comments & Testimony

• Kai Miley Makekao testified at length in opposition to the Johnson Controls lease purchase agreement, asserting claims as a freeholder under royal patent title deeds and citing international law. They argued the county lacked authority to proceed and demanded respect for Hawaiian land rights. Their testimony exceeded the time limit and was concluded after six minutes.
• Jim Langford deferred his time to the previous testifier but later testified on the Johnson Controls item, recommending that council members consider recusal and offering auditing services.
• A representative of the Royal Patented Kingdom testified on both items. They stated that descendants of royal patent landholders do not approve or consent to any energy contracts, calling such agreements illegal. They also objected to the removal of the first testifier, calling it a violation of international law, and demanded the return of lands and assets.

Discussion Items

• BFED‑61 – Resolution 26100 (Johnson Controls Energy Performance Contract – Phase 3): Budget Director Milner requested an amendment to add the phrase “up to” before the dollar amount to allow flexibility if the final financed amount is lower than originally stated. The proposed cost is $9,021,259 plus interest at 4.49%, financed through a tax‑exempt lease purchase agreement with TD Equipment Finance Inc. Councilmember Batangan questioned why the financing is structured as a lease, given that the improvements (irrigation controls, window film, roof upgrades, electrical service upgrades, and wells) would be difficult to remove if the county failed to make payments. Budget Director Milner explained that the lease structure allows the financier to repossess equipment if payments cease, and the county would be responsible for replacement. Councilmember Cook asked about the relationship between capital costs and energy savings; a Johnson Controls representative clarified that the project is budget‑neutral under Hawaii Revised Statutes §36‑41, with savings from energy‑efficient measures paying for non‑saving improvements like roofs. The committee discussed the pending third‑party audit of Phase 1 savings. The CD‑1 amendment (adding “up to”) was adopted by voice vote (6 ayes, with Chair Lee, Member Palten, and Member Rollins Fernandez excused). The main motion as amended was then approved by the same 6‑0 vote.
• BFED‑58 – Bill 73 (2026) – Amendments to Maui County Code §3.36.020 (Grants Program): The bill requires the county to adopt uniform countywide administrative rules under HRS Chapter 91 for the grants program, and permits agencies to adopt supplemental internal policies and procedures that do not conflict with those rules. Budget Director Milner noted that the administrative rules are still under development by corporation counsel, with a target adoption date of late August 2026 (previously August 15). Chief of Staff Lalo emphasized collaboration across departments and plans for public workshops and training. Councilmember Batangan raised concerns that subsection (b) could allow agencies to bypass formal rulemaking for policies affecting public rights, referencing HRS §91‑1. Office of Council Services (Mr. Hanano) opined that policies and procedures that do not fall under the definition of a “rule” are permissible, but suggested the provision might be unnecessary. Corporation counsel confirmed that agency‑specific policies will be reviewed by assigned corporation counsel to determine if rulemaking is required. The CD‑1 version, which identifies the Department of Management as the agency responsible for adopting the countywide rules, was adopted by voice vote (6 ayes, same excused members). The main motion as amended then passed 6‑0.

Key Outcomes

• Resolution 26100 (Johnson Controls Phase 3) passed out of committee with the CD‑1 amendment (adding “up to” to the principal amount). The vote was 6 in favor; Chair Lee, Member Palten, and Member Rollins Fernandez were excused.
• Bill 73 (2026) passed out of committee on first reading with the CD‑1 amendment (designating the Department of Management as the rule‑making agency). The vote was 6 in favor; the same three members were excused.
• The committee directed staff to transmit a written question to the administration regarding the appropriate use of administrative rulemaking versus internal policies and procedures for grant programs, with further clarification expected before second reading.