BUDGET AND FINANCE COMMITTEE Council of the County of Maui MINUTES April 17, 2014 Council Chamber CONVENE: 9:15a.m. PRESENT: Councilmember Mike White, Chair Councilmember Gladys C. Balsa, Member (out 1:56 p.m., in 2:00 p.m., out 3:40 p.m., in 3:44 p.m., out 4:27 p.m. Councilmember Elle Cochran, Member (in 11:06 am., out 2:00 p.m., in 2:47 p.m., out 3:58 p.m., in 4:00 p.m.) Councilmember Donald G. Couch, Jr., Member Councilmember Stacy Crivello, Member (out 2:49 p.m., in 2:50 p.m.) Councilmember Don S. Guzman, Member (out 2:00 p.m., in 2:47 p.m., out 3:35 p.m., in 3:37 P.M.) Councilmember Michael P. Victorino, Member (in 2:44 p.m., out 3:45 p.m., in 3:50 p.m.) EXCUSED: VOTING MEMBERS: Councilmember G. Riki Hokama, Vice-Chair Councilmember Robert Carroll, Member STAFF: Michele Yoshimura, Legislative Analyst Chancy Hopper, Legislative Analyst Jordan Molina, Legislative Analyst Yvette Bouthillier, Committee Secretary Tina Thompson, Executive Assistant to Councilmember Crivello, assisting at Molokai Council Office (via telephone conference bridge) Denise Fernandez, Council Aide, Lanai Council Office (via telephone conference bridge) Dawn Lono, Council Aide, Hana Council Office (via telephone conference bridge) ADMIN.: Sananda Baz, Budget Director, Office of the Mayor Teena Rasmussen, Economic Development Director, Office of the Mayor Tina Silva, Economic Development Specialist 11, Office of Economic Development, Office of the Mayor Tracy Bennett, Economic Development Specialist III, Office of the Economic Development, Office of the Mayor Robert Parsons, Administrative Assistant II, Office of the Mayor BUDGET AND FINANCE COMMITTEE MINUTES Council of the County of Maui April 17, 2014 Jeffrey T. Ueoka, Deputy Corporation Counsel, Department of the Corporation Counsel OTHERS: Lisa Paulson, Executive Director, Maui Hotel and Lodging Association Richard Lucas, Program Manager, Friends of Old Maui High School Juli Patao, CareerLink Director and Cooperative Education Instructor, University of Hawaii Maui College Jennifer Brown Nadine Quinsaat Lori Sanada Cassandra Gabrielle Cantos Brian Zamora Efrenila Paet Rhon Rarogal Tamara Sherrill, Interim Executive Director, Maui Nui Botanical Gardens Anne Jenny Craig Swift, Business Development Corp. Director, Maui Economic Opportunity, Inc. Jenny Chan Takemoto Warren Watanabe, Executive Director, Maui County Farm Bureau Jeanne Skog, President and Chief Executive Officer, Maui Economic Development Board Leslie Wilkins, Vice President, Maui Economic Development Board Yuki Lei Sugimura, Marketing Coordinator, Maui Friday Town Parties Stephanie Ohigashi, Chairperson, Maui County Sister Cities Rosemary Robbins Others PRESS: Akaku: Maui Community Television, Inc. CHAIR WHITE: .. (gavel). This meeting of the Budget and Finance Committee will come to order. Today we will be reviewing the grants provided through the Office of Economic Development. And just a reminder, Members, that we have a bare quorum, so you may not leave the room without us going into recess. So, with that I'd like to welcome our Council Chair Gladys Baisa. COUNCILMEMBER BAlSA: Good morning, Chair. CHAIR WHITE: Good morning. And, Committee member Stacy Crivello. COUNCILMEMBER CRIVELLO: Good morning, Chair. -2- BUDGET AND FINANCE COMMITTEE MINUTES Council of the County of Maui April 17, 2014 CHAIR WHITE: Aloha. Don Couch. COUNCILMEMBER COUCH: Good morning, Chair. CHAIR WHITE: Aloha. And Don Guzman. COUNCILMEMBER GUZMAN: Good morning, Chair. CHAIR WHITE: Good morning. And excused for the day are Members Bob Carroll, Riki Hokama, Mike Victorino. And Elle Cochran will be joining us after an early morning appointment this morning. So, Mr. Hokama and Mr. Victorino are on Oahu today lobbying the House and Senate Conference Committee to lift the cap on the TAT. So we forwarded them some additional numbers this morning to help them with their, with their lobbying. So, we wish them the best of luck in their efforts. We've also mentioned to them that since Oahu is significantly quicker in growing back from the recession with their visitor revenues up about 35 percent over 2007, and the neighbor islands are still flat or down compared to 2007. Additionally, the economies on the neighbor islands are still suffering from a lack of construction work while Oahu is up 30 percent compared to their 10-year average. The Big Island is down 30 percent. Maui is down 34 percent, and I believe Kauai is down about 52 percent. So, hopefully, if they're not wanting to give up a lot of revenue, at the State level, we can convince them to do a little bit more for the neighbor islands than they're doing for Oahu. So, we wish them all sorts of luck. And, Members, we've got a busy agenda today, and then we go to--I believe it's Lihikai, right?--this evening for our Kahului hearing. So, without further delay let's move into public testimony. And we will take five testifiers here and then go to our District Offices. So, our first testifier this morning is Lisa Paulson, and she will be followed by Richard Lucas. ...BEGIN PUBLIC TESTIMONY... MS. PAULSON: Good morning, Chair. CHAIR WHITE: Good morning. MS. PAULSON: Members of the Committee. I'm here to testify on two budget items. So, I will get through.. .1 did some written testimony on both of the line items I'm here to testify for. So, if I don't make it through both, I do request that you look at my written submitted testimony. Thank you. I'm here as the Executive Director of Maui Hotel and Lodging Association. I'm here today also as the Board Co-Chair of the Academy of Hospitality and Tourism, which I'll refer to as AOHT for three high schools here on Maui. It is a part of Maui's Lodging and Tourism's mission to provide workforce development. On behalf of the Maui Hotel and Lodging Association, I ask for your support of the $10,000 funding for the Academy of Hospitality and Tourism Program in the County's Fiscal Year 2015 budget. The Academy of Hospitality and Tourism is a 501(c)(3) organization with approximately 220 -3- BUDGET AND FINANCE COMMITTEE MINUTES Council of the County of Maui April 17, 2014 students enrolled from Baldwin, Lahainaluna, and Maui High Schools. The goal of AOHT is to provide exposure to students who would not ordinarily have an introduction to the industry, and to offer exposure to a visitor's point of view. Our main objectives are to provide internships for hands on experience in the workforce, and to provide scholarships to those who wish to continue their education in the visitor industry. Understanding the significance and relevance of Hawaii's host culture; it is one of AOHT's primary objectives to educate students of the need to foster goodwill amongst the industry and the community, to cultivate respect for the host culture, to preserve this special place, and to balance the benefits and challenges of tourism. A lot of these students do go on and have internships and job shadowing, and often hired after proficiency. .proficiently learning the skills that qualify them for regular employment. This valuable employment opportunity allows them a head start on careers within the industry as they pursue their individual careers or more importantly degrees at the post-secondary level. From 1992 to 2007, and Fiscal Year 2011, the AOHT Program received funding support from Maui County's Office of Economic Development. From 2004 through 2008, additional funding was received from Hawaii Tourism Authority, HTA. HTA's funding stopped in 2008, and we have since gone through our funds to support this program. We were advised this year to seek a line item funding from the County for $10,000 a year to ensure the continued success of this program. These funds do go to support our annual student conference that's held at UH Maui College every January. I do know some of you have been able to attend that. It helps to fund school enrichment programs, teacher development, and our annual graduation luncheon. Later today and next week, you will get to hear from some of our students who are passionate about their futures and the opportunities this program provides for them. We strongly believe in the value that the AOHT Program brings to our students and urge you to support our program with this much needed funding. Thank you for allowing me to testify. CHAIR WHITE: Thank you, Ms. Paulson. Members, questions for the testifier? Mr. Couch. COUNCILMEMBER COUCH: Thank you, Mr. Chair. And thank you, Ms. Paulson, for being here. So, in 2008, HTA stopped your funding? MS. PAULSON: Correct. COUNCILMEMBER COUCH: Did they say why? MS. PAULSON: They funded to the CTE Program. They diverted all the funds to the CTE Program so their funding could go throughout to all the public high schools. COUNCILMEMBER COUCH: Okay. And who advised you to come and ask for a line item here? MS. PAULSON: The Office of Economic Development. COUNCILMEMBER COUCH: Okay. All right. Thank you. -4- BUDGET AND FINANCE COMMITTEE MINUTES Council of the County of Maui April 17, 2014 MS. PAULSON: You're welcome. CHAIR WHITE: Any other questions, Members? Seeing none, thank you very much, Ms. Paulson. MS. PAULSON: Thank you. CHAIR WHITE: Mr. Lucas will be followed by Juli Patao. MR. LUCAS: Committee Chair White, Council Chair Baisa, and Members of the County Council, aloha. CHAIR WHITE: Aloha. MR. LUCAS: My name is Richard Lucas. I am the Program Manager for Friends of Old Maui High School at Hamakuapoko. And I'm here today to testify in support of the budget request for the Office of Economic Development. As you know our project involves the preservation, rehabilitation, and reuse of the Old Maui High School campus.