The Budget, Finance & Economic Development Committee voted to recommend first reading of bills amending the fiscal year 2026 budget and the general bond‑authorization ordinance to appropriate an additional $1,100,000 for renovations at 60 South Church Street.

Why it matters: The county purchased the building in late 2020 to expand county facilities. Renovation work uncovered deferred maintenance, water intrusion and structural issues in a building originally configured as a telecommunications facility; the county said repairs are necessary to protect Hawaiian Telcom equipment housed there and to finish a county emergency operations center and related offices.

Dan Shupak, the county’s Capital Improvement Program coordinator, told the committee the county bought the property for $3,740,000 and that, to date, the project has encumbered just over $22,000,000 in expenditures and contracts. Construction began in January 2023. Shupak said delays from extended permit reviews and a federal DHS grant review, combined with material and labor escalation, change orders and additional deferred‑maintenance work, drove the new funding request.

"A significant portion of the $1.1 million is going to address items related to Hawaiian Telcom's equipment rooms and other deferred maintenance areas in the building," Shupak said, noting the property houses critical telecommunications infrastructure used for commercial services and 9‑1‑1 support.

Deputy Managing Director Erin Wade (representing county management) described the project as a learning experience in rehabbing an older building that was designed for different uses. She said construction and equipment installation are on an accelerated schedule: the prime contractor expects significant completion in December and furniture and technology installation will begin then, with an anticipated move‑in in February 2026.

Committee members asked detailed questions about the funding breakdown. Shupak and management provided an itemized summary in a written response (to be posted with committee records) showing allocations for security improvements requested by MEMA, electrical infrastructure work, roof modifications and interior floor‑plan changes. The committee also discussed HVAC replacement: Shupak said the existing chiller failed and a temporary chiller is on site; a full replacement chiller and HVAC work are part of the broader project and cost estimates for new chillers are substantially larger than the current supplemental request.

Members requested a written breakdown of past expenditures and the cumulative cost of purchase plus renovation, and asked for details about leaseback arrangements with Hawaiian Telcom. Staff said those questions would be answered in a follow‑up letter and posted with the committee records.

The committee voted to recommend passage on first reading of Bill 136 (amending the FY26 budget) and Bill 137 (amending the general bond authorization ordinance) with non‑substantive revisions; the motion carried, 7‑yes, 2 excused.

The administration said it would provide the committee the outstanding financial documentation and responses to members’ detailed questions before the bills proceed to council reading.