February 8, 2024

DRAFT

STATE OF HAWAII
BOARD OF EDUCATION
FINANCE AND INFRASTRUCTURE COMMITTEE MEETING

MINUTES

Queen Liliuokalani Building
1390 Miller Street, Room 404
Honolulu, Hawaii 96813
Thursday, February 8, 2024

PRESENT:
Ken Kuraya, Chairperson
Bill Arakaki
Kaimana Barcarse
Warren Haruki
Lauren Moriarty
Kahele Dukelow, ex officio

EXCUSED:
Makana McClellan

ALSO PRESENT:
Keith Hayashi, Superintendent, Department of Education
Curt Otaguro, Deputy Superintendent of Operations, Department of Education
Capsun Poe, Board Executive Director
Wimmie Wong Lui, Board Analyst
Lady Garrett, Secretary

I. Call to Order

Committee Chairperson Ken Kuraya called the Finance and Infrastructure Committee (“Committee”) Meeting to order at 9:05 a.m.

II. Approval of Meeting Minutes of October 4, 2023, December 7, 2023, and January 11, 2024

ACTION: Motion to approve the Finance and Infrastructure Committee’s October 4, 2023, December 7, 2023, and January 11, 2024, meeting minutes. (Barcarse/Arakaki). The motion carried through unanimous consent from all members present.

III. Discussion Items

Review of status of Department capital improvement projects

Department capital improvement projects. Curt Otaguro, Deputy Superintendent of Operations, summarized the status of Department of Education (Department) capital improvement projects (CIP). The Department has approximately $2.1 billion in CIP funds that are not spent as follows: $865 million in CIP projects obligated in a contract or purchase order, $895 million in CIP projects appropriated in 2021 and 2022 with a lapse date of June 30, 2024, and $336 million in CIP projects were appropriated in 2023 with a funding lapse date of June 30, 2026. The Department completed 88 projects during the summer totaling $44 million and is in process of reviewing business processes and reporting abilities while implementing Bright Line Rules. The Department needs to determine timelines for permitting expectation and overall workflow to address the line item CIP.

Committee Chairperson Kuraya called for public testimony on this agenda item.

Vanessa Ott, member of the public, expressed concern relating to the amount of time for the public to prepare testimony with no agenda materials posted. She proposed that the Board request that meeting materials be posted 10-calendar days prior to the meeting.

Susan Pcola-Davis, member of the public, echoed comments by Ott and noted that past practice allowed the public to prepare written testimony. She stated that the Committee requested information at the previous meeting and the memorandum does not address the questions raised.

Committee members received written testimony before the meeting. (A listing of the people who submitted written testimony before the meeting is included at the end of these minutes.)

(a) Committee Member Haruki asked the Department to take note of the testimonies and asked the following: (1) when did the Department implement Bright Line Rules and what new changes will help to address the backlog; (2) during what months were the 88 projects completed during the summer; and (3) asked why there is no further information on work completed beyond the summer months. Otaguro confirmed that the Board should receive updated information and the Department will work on providing this information.

(b) Committee Member Haruki asked about the amount of staff vacancies and if Bright Line Rules had been used by all of the staff. Otaguro replied that staff vacancies are at 20% in facilities, with the most in planning and construction management, and Bright Line Rules will be used by everyone. Committee Member Haruki reminded Otaguro that the Department was non-responsive to Committee Chairperson Kuraya’s request for information from the previous meeting.

(c) Committee Member Arakaki asked what changes and processes are being done better at the school, complex and state levels.

(d) Committee Member Barcarse suggested that the Department create a high-level source of information accessible to the public to provide information and options.

(e) Committee Member Moriarty stated that Bright Line Rules focuses on completion of projects and whether to continue or lapse projects. She asked what other criteria is used when determining prioritization of resources. Otaguro stated that Bright Line Rules are intended to determine risks from the beginning to understand the scope. Committee Member Moriarty clarified that she is asking about other criteria for projects and the process as a broader systemic impact moving forward. Audrey Hidano, Interim Assistant Superintendent of the Office of Facilities and Operations explained that health and safety is prioritized first, followed by ADA, and security. Hayashi shared that health and safety is the number one priority, but the Department also looks at systemic impacts, ADA and Title IX compliance and other federal requirements,and noted that the Department needs to work on prioritization. Committee Member Moriarty encouraged the Department to make the criteria information public and include project timelines.

(f) Committee Chairperson Kuraya referenced the summer projects and noted that the bulk of the projects are repair and maintenance (R&M) or deferred maintenance versus line item CIP. Otaguro replied that the Department is messaging to the legislature that similar projects could move ahead if more funding was available. Hidano also acknowledged the concerns on the shortage of workers and noted that multi-skilled employees are being looked at, which will take time and resources.

Update on status of schools’ fire alarm systems

Update on status of schools fire alarm systems. Otaguro updated the Committee on the school fire alarm system and reported that Moanalua Middle School is no longer on fire watch.

Committee Chairperson Kuraya called for public testimony on this agenda item.

Susan Pcola-Davis, member of the public, requested understanding on what it means when the Department shares that Moanalua Middle School is no longer on fire watch. She also asked for target completion dates to be provided by the Department.

(a) Committee Member Haruki noted that broken fire alarms take 3 to 6 years to be fixed and emphasized that fire alarms relate to safety which is a top priority. He asked for clarification on what is an appropriate timeline to address issues relating to school fire alarms. Otaguro replied that the Department needs to develop a proactive maintenance program with adequate funding.

(b) Committee Member Haruki asked for the next report on school fire alarms to include how issues will be addressed in the long term and noted that the Department needs to be proactive for all schools before funding is addressed. Otaguro expressed agreement.

(c) Committee Chairperson Kuraya asked if the active fire alarm project listing will be updated since the report references King Kekaulike High School with the completion date of December 2023; and Kalanianaole Elementary & Intermediate School completion date as March 2024. He requested an active fire alarm project list that is as concise and emphasized that school safety is a high priority.

Update on Department actions and updates in response to the final report of the House of Representatives Lahaina wildfire interim working groups

Department actions and updates in response to the final report of the House of Representatives Lahaina wildfire interim working groups. Otaguro noted that the Department continues to work on Lahaina wildfire recovery efforts to address the 33 findings identified by the House of Representatives working group. He shared that the Department continues to work with the county to ensure the environment is safe, ongoing debris removal efforts and quality testing for air and water, school evacuation plans, reimbursement for expenses from the Federal Emergency Management Agency (FEMA), and the United States Army Corps of Engineers is building the temporary school in West Maui which will include 30 classrooms, library, multi-purpose center, and play areas for students.

Committee Chairperson Kuraya called for public testimony on this agenda item.

Susan Pcola-Davis, member of the public, shared about a bill relating to school safety and emphasized that the Department needs to review the House Lahaina wildfire interim working group report.

(a) Committee Member Haruki stated that the report covers certain findings including 8 recommendations and requested that the Department provide more information on the previous request from the Committee which was to address the recommendations.

(b) Committee Member Moriarty asked that the Department focus on what should be kept or changed relating to the recommendations. She noted that the Department needs to be prepared for future emergencies.

(c) Committee Member Arakaki requested a copy of the full report and noted that many recommendations will fall into student achievement categories to support students and all of the committees to a certain degree.

(d) Committee Chairperson Kuraya requested that the information requested by the Committee be provided. Otaguro apologized for misunderstanding the request and expressed understanding.

(e) Committee Member Dukelow asked for clarification on the Board’s request to specifically address the recommendations from the legislature. Committee Chairperson Kuraya confirmed that a request was made to understand what work has been done relating to the recommendations.

(f) Committee Member Haruki stated that the 8 recommendations fall under various committees whoever has jurisdiction over the items should address this information.

(g) Committee Member Moriarty suggested that recommendations relating to the Maui wildfires include plans to address future emergencies.

Review of Strategic Plan Desired Outcome 3.1.2, "All systems to address school facility needs are responsive and able to meet all needs effectively, efficiently, and quickly," relating to overall real estate optimization

Strategic Plan Desired Outcome 3.1.2, "All systems to address school facility needs are responsive and able to meet all needs effectively, efficiently, and quickly," relating to overall real estate optimization (OREO). Hayashi expressed commitment to OREO to identify historical impediments and create an integrated process with examples. The OREO analysis will include planning, budgeting, funding and procurement, project management, permitting, and policy modifications to address cost effective management of facilities. The Department has begun work on phase I of OREO, to gather an inventory of all assets in the Department’s real estate portfolio. During phase II of OREO the Department will examine internal processes to make sure work is integrated across all functions and all islands for optimal efficiency and cost-effectiveness. The Department’s timeline to build a complete inventory will be completed in 6 months and includes discussions with University of Hawaii and other entities to determine best practices. He highlighted that the job order contracting has been successful to help the Department save money and manage costs.

Committee Chairperson Kuraya called for public testimony on this agenda item.

Susan Pcola-Davis, member of the public, testified that presentations link back to the legislature and the summaries.

(a) Committee Member Moriarty expressed appreciation for the additional information relating to OREO. Hayashi replied that he will personally take an active role and approach which involves many partners towards OREO.

IV. Adjournment

Committee Chairperson Kuraya adjourned the meeting at 11:03 a.m.

List of the people who submitted written testimony before the meeting

NAME	Organization	Agenda Item
Vanessa Ott		III.A. Review of status of Department capital improvement projects; III.B. Update on status of school fire alarm systems; III.C. Update on Department actions and updates in response to the final report of the House of Representatives Lahaina wildfire interim working group; III.D. Review of Strategic Plan Desired Outcome 3.1.2, "All systems to address school facility needs are responsive and able to meet all needs effectively, efficiently, and quickly," relating to overall real estate optimization
Susan Pcola-Davis		III.A. Review of status of Department capital improvement projects; III.C. Update on Department actions and updates in response to the final report of the House of Representatives Lahaina wildfire interim working group