Meeting Time:
April 25, 2025 at 9:00am HST
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Agenda Item
BFED-1 Bill 41 (2025) PROPOSED FISCAL YEAR 2026 BUDGET FOR THE COUNTY OF MAUI (BFED-1)
Legislation Text
Correspondence from Committee Chair 03-11-2025
Budget Calendar 03-10-2025
Correspondence from Committee Chair 03-18-2025
Budget Calendar 03-17-2018
(FN-2) Correspondence to Finance 03-18-2025 and response 03-28-2025
(BD-3) Correspondence to Budget Director 03-18-2025
Correspondence from Committee Chair 03-19-2025
(AG-1) Correspondence to Agriculture 03-20-2025 and response 04-02-2025
(OCA-1) Correspondence to County Auditor 03-20-2025 and response 03-31-2025
(OM-1) Correspondence to Chief of Staff 03-20-2025 and response 03-31-2025
(CC-2) Correspondence to Corporation Counsel 03-20-2025 and response 03-28-2025
(OCC-1) Correspondence to County Clerk 03-20-2025 and response 04-03-2025
(EWA-1) Correspondence to East Maui Water Authority 03-20-2025 and response 03-31-2025
(EM-1) Correspondence to Environmental Management 03-20-2025 and response 04-02-2025
(EMA-1) Correspondence to MEMA 03-20-2025 and response 04-02-2025
(FN-3) Correspondence to Finance 03-20-2025 and response 03-27-2025
(FS-1) Correspondence to Fire and Public Safety 03-20-2025 and response 03-31-2025
(HO-1) Correspondence to Housing 03-20-2025 and response 04-02-2025
(HC-1) Correspondence to Human Concerns 03-20-2025 and response 03-31-2025
(LC-1) Correspondence to Liquor 03-20-2025 and response 03-28-2025
(MD-1) Correspondence to Management 03-20-2025 and response 04-04-2025
(OCS-1) Correspondence to Council Services 03-20-2025 and response 03-28-2025
(OWR-1) Correspondence to 'Oiwi Resources 03-20-2025 and response 04-01-2025
(PR-1) Correspondence to Parks and Recreation 03-20-2025 and response 03-31-2025
(PS-1) Correspondence to Personnel Services 03-20-2025 and response 03-31-2025
(PL-1) Correspondence to Planning 03-20-2025 and response 03-31-2025
(TD-1) Correspondence to Transportation 03-20-2025 and response 03-28-2025
(PD-1) Correspondence to Police 03-20-2025 and response 03-31-2025
(PA-1) Correspondence to Prosecuting Attorney 03-20-2025 and response 03-27-2025
(BD-2) Correspondence to Budget Director 03-21-2025 and response 03-28-2025
(WS-1) Correspondence to Water Supply 03-20-2025 and responses 03-31-2025, 04-04-2025 (revised)
Correspondence to CDBG Program Manager 03-21-2025 and response 03-24-2025
(PW-1) Correspondence to Public Works 03-20-2025 and Responses 04-04-2025, 04-09-2025 (revised)
(FN-1) Correspondence to Finance 03-24-2025 and response 03-27-2025
(BD-4) Correspondence to Budget Director 03-24-2025 and response 03-27-2025
(PS-2) Correspondence to Personnel 03-24-2025 and response 03-27-2025
Correspondence from Committee Chair 03-24-2025
(TAX-1) Correspondence to State Department of Taxation 03-24-2025
Basic Calendar handout 03-25-2025
Prosecuting Attorney Changes and Expansion Request handout 03-25-2025
Councilmember Priorities handout 03-25-2025
Correspondence from Committee Chair handout 03-25-2025
Draft handout of Budget Director letter 03-25-2025
(BD-5) Correspondence to Budget Director 03-25-2025
Bill 41 (2025)
Bill 42 (2025)
Bill 43 (2025)
Bill 44 (2025)
Bill 45 (2025)
Bill 46 (2025)
Resolution 25-83
FY 2026 Mayor's Budget Proposal - Program 03-25-2025
FY 2026 Mayor's Budget Proposal - Synopsis 03-25-2025
Correspondence from Mayor 03-25-2025
Correspondence from Committee Chair 03-25-2025
(BD-7) Correspondence to Budget 03-28-2025 and response 04-03-2025
(BD-8) Correspondence to Budget 03-28-2025 and response 04-03-2025
(BD-9) Correspondence to Budget Director 03-28-2025 and response 04-04-2025
(CC-3) Correspondence to Corp Counnsel 03-29-2025 and response 04-01-2025
(WS-2) Correspondence to Water Supply 03-29-2025 and response 04-02-2025
(EWA-2) Correspondence to East Maui Water Authority 03-29-2025 and response 04-03-2025
(PS-3) Correspondence to Personnel Services 03-29-2025 and response 04-03-2025
(OM-3) Correspondence to Chief of Staff 03-29-2025 and response 04-03-2025
(FN-4) Correspondence to Finance 03-29-2025 and response 04-04-2025
(PR-2) Correspondence to Parks and Recreation 03-29-2025 and response 04-04-2025
(PD-2) Correspondence to Police 03-29-2025 and response 04-02-2025
Presentation from Seth Colby 03-31-2025
eComments Report 03-31-2025
Bill 48 (2025)
Correspondence from Director of Council Services 03-28-2025
Testimony from Anonymous 04-01-2025
FY26 App. A Pt. II - Departments 04-01-2025
(EMA-2) Correspondence to Emergency Management Agency 04-01-2025 and response 04-07-2025
(OCS-2) Correspondence to Council Services 03-31-2025 and response 04-07-2025
(OCC-2) Correspondence to County Clerk 04-01-2025 and correspondence 04-04-2025
(OCA-2) Correspondence to County Auditor 04-01-2025 and response 04-04-2025
(PA-2) Correspondence to Prosecuting Attorney 04-01-2025 and Response 04-04-2025
(TAX-2) Correspondence to State Tax Research and Planning Officer 03-31-2025 and response 04-01-2025
(FS-2) Correspondence to Fire Chief 04-01-2025 and response 04-04-2025
(AG-2) Correspondence to Agriculture 04-01-2025 and response 04-07-2025
(FN-5) Correspondence to Finance 04-01-2025 and Response 04-09-2025
(LC-2) Correspondence to Liquor Control 04-01-2025 and response 04-03-2025
(OWR-2) Correspondence to Oiwi Resources 04-01-2025 and response 04-07-2025
eComments Report 04-01-2025 Upcountry
(PL-2) Correspondence to Planning Director 04-01-2025 and Response 04-07-2025
eComments Report 04-02-2025 East Maui
Presentation from Police 04-02-2025
Correspondence from Committee Chair 04-02-2025
RPT Range of Rates Reso (FY26) 04-03-2025
(FN-6) Correspondence to Finance 04-02-2025 and response 04-08-2025
MPD Vacant Positions Redacted 04-02-2025
RPT Range of Rates Reso (FY26) 04-02-2025
Testimony from Steve Scraggs 04-03-2025
eComments Report 04-02-2025
Correspondence from Committee Chair 04-03-2025
(OM-4) Correspondence to Chief of Staff 04-02-2025 and response 04-08-2025
(PS-4) Correspondence to Personnel Services 04-02-2025 and Response 04-08-2025
(HC-2) Correspondence to Human Concerns 04-02-2025 and Response 04-08-2025
eComments Report 04-03-2025
(MD-2) Correspondence to Management 04-04-2025
(FN-7) Correspondence to Finance 04-04-2025 and Response 04-08-2025
(TD-2) Correspondence to Transportation 04-04-2025 and Response 04-14-2025
(PW-2) Correspondence to Public Works 04-04-2025 and Response 04-14-2025
(EM-2) Correspondence to Environmental Management 04-04-2025 and Response 04-14-2025
(PR-3) Correspondence to Parks and Recreation 04-04-2025 and response 04-14-2025
(PD-3) Correspondence to Police Chief 04-04-2025 and response 04-09-2025
(FN-8) Correspondence to Finance 04-05-2025 and response 04-09-2025
(CC-4) Correspondence to Corporation Counsel 04-05-2025 and Response 04-09-2025
(PS-5) Correspondence to Personnel Services 04-05-2025 and Response 04-11-2025
(WS-4) Correspondence to Water Supply 04-05-2025 and Responses 04-10-2025. 04-15-2025
(BD-12) Correspondence to Budget Director 04-06-2025 and Response 04-11-2025
(FN-9) Correspondence to Finance 04-06-2025 and response 04-10-2025
Budget Deliberation Schedules 04-04-2025
Correspondence from Committee Chair 04-07-2025
(PW-3) Correspondence to Public Works 04-07-2025 and Response 04-14-2025
Testimony from Laurie Gaines 04-07-2025
Testimony from Lisa Labrecque 04-07-2025
Testimony from Moani Makaiwi 04-07-2025
Testimony from Nikki Russell 04-07-2025
Testimony from Judy Aikawa 04-07-2025
eComments Report 04-07-2025
(HO-2) Correspondence to Director of Housing 04-07-2025 and response 04-11-2025
Bill 15 (2025)
Correspondence from Budget Director 01-30-2025
(HC-3) Correspondence to Human Concerns 04-08-2025 and response 04-11-2025
Correspondence from Committee Chair 04-08-2025 (East Maui)
eComments Report 04-08-2025
Bill 49 (2025)
Resolution 25-89
Resolution 25-90
(PS-6) Correspondence to Personnel Services 04-08-2025 and Response 04-15-2025
eComments Report 04-08-2025 (Lanai)
Testimony Received 04-08-2025 (Lanai)
(PL-3) Correspondence to Planning 04-08-2025 and Response 04-14-2025
(BD-13) Correspondence to Budget Director 04-08-2025 and response 04-14-2025
(FS-3) Correspondence to Fire & Public Safety 04-09-2025 and Response 04-15-2025
Bill 50 (2025)
(EMA-3) Correspondence to Emergency Management Agency 04-09-2025 and Response 04-15-2025
Testimony from Josh DeSilva 04-09-2025
Testimony from Courtney Cole 04-09-2025
Testimony from Brian Etheredge 04-09-2025
Correspondence from Committee Chair 04-09-2025
(BD-14) Correspondence to Budget Director 04-09-2025 and Response 04-15-2025
Correspondence from Managing Director 04-09-2025
(OWR-3) Correspondence to Oiwi Resources 04-09-2025 and Response 04-14-2025
eComments Report 04-09-2025
eComments Report 04-10-2025
(BD-15) Correspondence to Budget Director 04-10-2025 and response 04-14-2025
(WS-5) Correspondence to Water Supply 04-10-2025 and Response 04-15-2025
(MD-3) Correspondence to Management 04-10-2025
Testimony from Andy Justus 04-10-2025
Testimony from Linda Puppolo 04-10-2025
Affordable Housing Fund Annual Plan 04-11-2025
Lapsed Affordable Housing Fund Projects 04-11-2025
(OCS-3) Response from Council Services 04-11-2025
Testimony Received 04-10-2025 (West Maui)
(FN-10) Correspondence to Finance 04-11-2025 and Response 04-16-2025
(BD-16) Correspondence to Budget Director 04-12-2025
(FN-11) Correspondence to Finance 04-15-2025 and Response 04-16-2025
(HC-4) Correspondence to Human Concerns 04-14-2025 and Response 04-17-2025
eComments Report 04-11-2025 (Molokai)
Email from Budget Director 04-14-2025
Testimony Received 04-11-2025 (Molokai)
(PS-7) Correspondence to Personnel Services 04-14-2025 and Response 04-17-2025
Correspondence from Committee Chair 04-14-2025 (Upcountry)
eComments Report 04-14-2025
(HO-3) Correspondence to Housing 04-14-2025
eComments Report 04-14-2025 (South Maui)
Testimony Received 04-14-2025 (South Maui)
(PD-4) Correspondence to Police 04-14-2025 and Response 04-17-2025
eComments Report 04-15-2025 (Paia)
(BD-18) Correspondence to Budget Director 04-15-2025
(TD-3) Correspondence to Director of Transportation 04-15-2025
Testimony Received 04-15-2025 (Paia)
(MD-4) Correspondence to Management 04-16-2025
Testimony from Scott Lacasse 04-16-2025
eComments Report 04-15-2025
eComments Report 04-16-2025 (9 a.m.)
(PW-4) Correspondence to Director of Public Works 04-15-2025
Correspondence from Committee Chair 04-16-2025 (Lanai)
Summary of Restored Category A Cuts from FY25 04-16-2025
Summary of Expansion Positions 04-16-2025
eComments Report 04-16-2025 (10 a.m.)
Bill 54 (2025)
10 Public Comments
Testimonies received from BFED Committee 04-25-2025
Aloha Everyone, I am writing in support of the Maui County Farm to Family Grant Bill. Access to our Saint Damien Molokai distribution site on Molokai provides and supports our community with fresh produce every month. Access to fresh, local produce ensures that our community and their families can better prepare meals and insure better health and well being. This grant will help our local farmers to produce and provide fresh food that otherwise may not be accessible or affordable for our families. Our community and economy has benefitted especially from the partnerships of distribution sites, the Maui Food Bank, Young Brothers, Makoa Trucking, and local farmers. Over the past few years at our distribution site the need for fresh produce has increased from 40 to 109+ families. In the past 2 months we have received 20 new applications requesting food. We also have developed a “volunteer team” that works well together to set up, move, distribute, clean up, work with our community and families when they arrive, deliver boxes when needed, deliver backpacks/snacks to schools, and other tasks. Please support the Maui County Food and Family Grant Bill. Mahalo Nui, Alberta Patchen & Saint Damien “Volunteer Team”
TESTIMONY of Joseph Streeter
IN OPPOSITION TO BILL 54 (2025)
MAUI COUNTY COUNCIL HEARING APRIL 25, 2025
Chair Sugimura, Vice Chair Kama, and Members of the Council,
My name is Joseph Streeter, I am the Business Development Manager of ELCCO Electric, Inc., a locally owned non-union electrical and solar contracting company that has served Maui for nearly 20 years. We are a small business employing roughly 70 electricians and support staff, focusing primarily on commercial, industrial, and multi-family home electrical projects on Maui. I have experience working in union and non-unionized companies and fully support worker’s rights, fair compensation, job security, and shared prosperity for the worker and company.
I am writing today to express my opposition to Bill 54 (2025). I applaud the council for attempting to make steps to support local workforce and the construction industry, however I believe Bill 54 as currently drafted would be detrimental for a number of reasons.
Key Concerns with Bill 54
1. Negative Impact on Small, Non-Union Contractors
Bill 54's requirement that bidders on capital improvement projects over $500,000 must be signatories to a community workforce agreement (CWA) effectively excludes our company and many other qualified non-union contractors on Maui. This provision:
• Creates a de facto union-only contracting standard under the guise of "responsible bidding"
• Harms against over 65% of Hawaii's skilled trade workforce employed by non-union firms
• Forces otherwise qualified local contractors to either sign agreements they had no role in negotiating or be excluded from public projects
• Ambiguity around what the requirements maybe of the CWA
As one of Maui's established electrical contractors, we have successfully completed numerous public projects with excellent safety records, on-time delivery, and value for customers. Bill 54 would prevent ELCCO from continuing this service to our community based solely on our labor affiliation status.
2. Worsening Maui's Critical Workforce Shortage
The bill fails to acknowledge Maui's current severe shortage of qualified trade and electrical workers:
• According to the Hawaii Department of Labor, Maui currently has a deficit of licensed electricians needed to meet current demand
• Approximately 21-23% of Maui's construction workforce is unionized, meaning Bill 54 would exclude 77-79% of our island's already limited workforce
• Following the Lahaina disaster, demand for electrical services and construction services is sure to increase, while available workforce has only grown by 3-5%
Implementing a CWA mandate would artificially restrict an already insufficient workforce at the worst possible time for our island's recovery.
3. Economic Impact on Our Business and Maui's Recovery
Our company's financial analysis shows that compliance with CWA requirements would:
• Significantly increase our operational costs
• Force us to pay into union benefit plans from which our employees would receive no benefits, essentially creating double payment for fringe benefits
• Substantially reduce our ability to participate in Lahaina's rebuilding efforts at a time when all qualified contractors are needed
For the last 20 years, ELCCO has delivered over $50 million in completed State and County projects, with another $20 million currently underway. Being excluded from this line of work could force us to reduce our workforce, directly impacting local families.
4. Delays in Critical Rebuilding Efforts
Bill 54's additional red tape and administrative requirements would create significant delays in Maui's recovery:
• Based on our experience with similar regulatory changes, new administrative requirements typically add weeks or months to construction timelines
• Homes and businesses waiting for construction work would face extended delays as contractors navigate new CWA compliance requirements. This delay maybe extended due to the conflicting requirements already in place and ambiguous language and requirements which unfortunately end up getting settled months or years later in the court system
• The limited pool of potentially CWA-compliant contractors would be overwhelmed by demand, creating bottlenecks across all construction sectors
For Lahaina families still waiting to rebuild, these unnecessary delays represent real human costs – more time displaced from homes and more businesses unable to reopen and provide jobs.
5. Redundancy with Existing Laws
Bill 54 creates unnecessary redundancy with existing laws that already ensure workforce development and local hiring, this redundancy and ambiguity of the existing rules creates uncertainty and legal issues resulting in non-compliance and delays for actual progress:
• HRS §103B (Hawaii Resident Hire Law) already mandates that contractors on state-funded projects employ at least 80% Hawaii residents
• Hawaii House Bill 1221 (HI HB1221) already addresses apprenticeship requirements for public works contracts valued at $250,000 or more
Our company fully complies with both these laws, maintaining over a 90% local Maui workforce and supporting our local workforce with apprentices through registered apprenticeship programs. Bill 54 would replace these effective mechanisms with an approach that prioritizes labor affiliation over actual Maui local workforce development outcomes.
6. Increased Costs for Taxpayers and Project Delays
Based on data from similar mandates in other jurisdictions:
• Reduced competition typically increases project costs by 12-18%
• Project timelines are often extended due to a restricted contractor pool
• Legal challenges and bid protests create further delays in essential public works
• Local families and businesses that are scraping by would be concerned to know that there are locally experienced companies with a local workforce that could deliver a lower cost product but would not be eligible due to this administrative burden
Using our company's project history as a baseline, we estimate that similar projects under Bill 54's CWA requirements would cost Maui County taxpayers an additional $1.2-1.8 million per $10 million in project value.
7. Undefined CWA Terms Enable Problematic Implementation
Bill 54 fails to define the actual terms or contents of the required Community Workforce Agreement, creating significant uncertainty. Based on standard CWA practices, we anticipate requirements that would:
• Mandate use of union hiring halls
• Force our employees to pay union dues without receiving comparable benefits
• Override our merit-based promotion and compensation systems
• Compromise the workplace culture we've carefully built over the years
Recommendations
1. Reject Bill 54 outright unless significantly amended to remove mandatory CWA signatory language
2. Focus on enforcing existing laws like HRS §103B and HI HB1221 that already promote local hiring and apprenticeship
3. Conduct a comprehensive impact analysis of how CWA mandates would affect Maui's small contractor community and rebuilding efforts
4. Create inclusive workforce development initiatives that don't discriminate based on labor affiliation
5. Consider alternative approaches that would better serve Maui's unique needs and challenges, especially during the critical Lahaina rebuilding period
Conclusion
Bill 54 appears well-intentioned in its stated goal to support local labor, but its practical effect would be to exclude the majority of Maui's qualified electrical contractors and other tradesmen from public projects and add bureaucratic hurdles that delay critical rebuilding efforts. At a time when our island needs all hands-on deck for rebuilding and infrastructure improvement, we cannot afford to implement policies that artificially restrict the available workforce and create additional red tape. I believe its safe to say that our community is already frustrated with the high costs and long durations for rebuilding – we should be focused on steps to rebuild faster and more efficiently, which is why I oppose Bill 54.
As a local tradesman committed to Maui's future, I urge this Council to prioritize inclusive policies that support all local contractors, regardless of labor affiliation, and facilitate the fastest possible recovery for our community. This testimony is not an argument for or against labor unions, it is a call to action for cost effective and locally supported labor in the efforts to rebuild our community. Our company stands ready to work collaboratively on solutions that truly benefit our entire community.
Respectfully submitted,
Joseph Streeter
Business Development Manager
Elcco Electric, Inc.
jstreeter@elccoelectric.com
(808) 419-4698
138 Lauo Loop, Kahului HI, 96732
TESTIMONY OF FREDERIC STEINECK
PRESIDENT, ELCCO INC.
IN STRONG OPPOSITION TO BILL 54 (2025)
MAUI COUNTY COUNCIL HEARING
04/23/2025
Aloha Chair Sugimura and Honorable Councilmembers,
My name is Frederic Steineck, and I live and work here on Maui as the President of ELCCO Inc., a Maui-owned electrical and solar contractor that builds exclusively on island. For the last 20 years, we’ve delivered over $50 million in completed State and County projects, with another $20 million currently underway. That said, the majority of our work is private, non-governmental, serving local homes and businesses across the island.
We proudly run a non-union, state-certified apprenticeship program, employing apprentices full-time at 40 hours a week, year-round. In 2024 alone, we logged over 86,000 field labor hours on Maui, and we expect to exceed that in 2025. Last year, six local apprentices graduated and were approved to sit for their journeymen electricians exam, each having completed 800+ hours of classroom learning and 10,000 hours of on-the-job training. We currently have 25 apprentices in the program, with six more set to graduate next year.
None of this would be possible if we relied solely on prevailing wage or union work, which come in waves and often excludes the local residential and small business work that keeps our teams consistently employed. It’s that steady, community-driven workload that fuels real workforce development—not just hours on public prevailing wage project, but lasting careers.
We’re not speculating about how to train local tradespeople—we’re doing it. And that’s why I stand in strong opposition to Bill 54.
________________________________________
Executive Summary
Bill 54 (2025), currently under consideration in Maui County, includes language that may appear benign in its intent to support local labor. However, a closer reading of the bill’s provisions, in light of broader statewide trends and legal context, reveals a concerning and potentially coordinated attempt to mandate Community Workforce Agreements (CWAs) across all tiers of public contracting. This brief outlines why Bill 54 is not merely about community empowerment but rather represents an economically and legally fraught strategy that imposes union-aligned labor terms under the guise of responsible contracting.
________________________________________
Key Provision in Question
“For capital improvement project contracts of more than $500,000, a bidder is not a responsible bidder if they are not a signatory to the community workforce agreement in effect at the time of contract award. The community workforce agreement must:
a. Be binding on all contractors at all tiers.
b. Include all construction work on a project.”
________________________________________
Analysis and Concerns
1. Coercive and Discriminatory Procurement
This provision disqualifies otherwise qualified, often local and small, non-union contractors unless they agree to CWA terms that they had no role in negotiating. It creates a de facto union-only contracting standard under the label of "responsible bidder."
• Violates the principle of free and open competition codified in procurement law.
• Disadvantages over 65% of Hawaii's trade workforce, which is employed by non-union firms.
• Duplicates exclusionary tactics used in Bill 8 (2024) on Oahu, which led to mass opposition and bid protests.
2. Contradicts HRS §103B (Hawaii Resident Hire Law)
HRS §103B already mandates that contractors on state-funded projects employ at least 80% Hawaii residents, ensuring local workforce utilization without discriminating by labor affiliation. Bill 54's approach circumvents this law by substituting a residency test with a labor union gatekeeping test.
• Undermines HRS 103B's local hire intent by replacing it with labor organization compliance.
• Violates the spirit of fair access for Hawaii residents who are employed by non-union contractors.
3. Economic Inefficiency and Higher Costs
Experience from other jurisdictions, including Honolulu, demonstrates that CWA mandates:
• Reduce competition in bidding.
• Drive up project costs through decreased bidder participation.
• Delay project delivery due to bid protests and legal challenges.
Bill 54 will replicate these failures at the county level, jeopardizing fiscal responsibility.
4. Undefined CWA Terms Enable Union-Only Practices
While proponents claim that CWAs apply to both union and non-union contractors, Bill 54 fails to define the actual terms or contents of the required Community Workforce Agreement. This ambiguity is critical and highly consequential:
• Historically, CWAs have required all contractors to adhere to union hiring practices, including the exclusive use of union hiring halls or oversight.
• Non-union workers are often forced to pay union dues and work under union rules, even if they are not union members.
• Employers must pay into union benefit plans from which their non-union employees do not receive benefits—leading to double-payment of fringe benefits.
• Merit-based workforce systems are overridden, eroding flexibility, innovation, and employee autonomy.
• Courts have repeatedly emphasized that mandating terms that override an employer’s right to independently negotiate labor agreements may infringe upon federal protections under the National Labor Relations Act (NLRA). Local government-imposed labor conditions—particularly through mandatory CWAs—have been the subject of legal challenges across jurisdictions for violating employers’ rights to free collective bargaining. Procurement mandates should not foreclose lawful, merit-based employment frameworks.
Thus, the absence of CWA definitions allows implementation of traditional union-only frameworks, effectively excluding merit-shop contractors under a veil of neutrality.
5. Hawaii Already Has Strong Apprenticeship Requirements (HI HB1221)
Concerns about the need to develop a sustainable local trade workforce, especially in light of the Lahaina rebuilding effort, are valid. However, Hawaii House Bill 1221 (HI HB1221) already addresses this need with a targeted, enforceable solution:
• HI HB1221 mandates that contractors and subcontractors bidding on public works contracts valued at $250,000 or more must be parties to registered apprenticeship agreements for all apprenticeable trades they plan to use on the project.
• This law ensures the development of a well-trained, local construction workforce through certified apprenticeship programs.
• It supports long-term labor capacity, economic sustainability, and skills development without forcing contractors into union agreements.
Bill 54 is redundant and less precise than HI HB1221 and instead prioritizes labor affiliation over workforce development outcomes.
________________________________________
Recommendations
1. Reject Bill 54 outright unless significantly amended to remove mandatory CWA signatory language.
2. Reaffirm HRS §103B as the sole standard for local hire requirements.
3. Acknowledge and enforce HI HB1221 as the primary mechanism to support apprenticeship and workforce development.
4. Conduct an impact analysis of mandated CWAs on county-level project costs, competition, and small business participation.
5. Ensure that any labor standards incorporated in procurement are inclusive, non-discriminatory, and locally beneficial without compelling labor affiliation.
6. Ensure that any labor standards incorporated in procurement are inclusive, non-discriminatory, and locally beneficial without compelling labor affiliation.
7. Require clear and transparent definition of CWA terms before mandating any agreement in the procurement process.
________________________________________
Conclusion
Bill 54 does not simply promote Maui-first labor. It covertly mandates union labor participation through procurement conditions that override both free-market principles and existing Hawaii law. By leaving CWA terms undefined, it opens the door for traditional union-only agreements to be imposed on all bidders—effectively shutting out non-union contractors and undermining local workforce choice.
Hawaii already has mechanisms in place to foster a skilled local workforce, such as HRS §103B and HI HB1221. These should be strengthened and enforced—not supplanted by ambiguous and politically motivated mandates like those proposed in Bill 54.
I stand in solidarity with other local, non-union, and merit-based contractors across the state who are speaking out against Bill 54. While this bill targets Maui first, we all understand that it sets a precedent that may affect every island and every contractor
This bill should be viewed not as a tool for economic justice, but as a mechanism for labor exclusivity, cost escalation, and public distrust.
________________________________________
For questions or further analysis, contact me.
Respectfully submitted,
Frederic Steineck
President, ELCCO Inc.
(808) 877-7344 ext. 205
138 Laou Loop, Kahului, HI 96732
www.elccoelectric.com
Aloha Council,
Mahalo for introducing Bill 54 and for your commitment to ensuring that a majority of county capital improvement projects benefit Maui County workers. Supporting our local workforce is a goal we at the Construction Industry of Maui wholeheartedly share.
That said, we do have some concerns about the approach outlined in the bill. Specifically, the mechanism it proposes would require non-union contractors to adhere to union hiring hall practices and the master agreements of the applicable craft unions. While we understand the intent, this could present significant challenges for many non-union contractors.
In its current form, the bill closely mirrors aspects of the Governor’s recent PLA – Administrative Directive No. 24-01. Requiring non-union firms to follow union protocols can unintentionally increase costs, exacerbate labor shortages, and lead to project delays. While such policies are often designed to standardize labor markets and control costs, various studies have suggested they can have the opposite effect.
The vast majority of our member contractors, both signatory and non-signatory, have expressed concerns over PLAs and similar directives. These measures can reduce the pool of available specialty trade contractors, many of whom may opt to pursue private sector work instead—especially in today’s strong market—leaving general contractors with limited options for public projects.
Also as President of Maui Plumbing Inc., a non-union contractor, I must share that we would not be able to participate in projects governed by either the Governor’s directive or Bill 54, due to the constraints they impose.
That said, we do see real value in the bill’s intent—to prioritize local labor and reduce reliance on off-island workers. This is an important step toward addressing the housing crisis and controlling construction costs. However, we also recognize that neighbor island and mainland construction markets are facing similar labor shortages, meaning that even this strategy may not fully solve the challenge.
We believe there is another path forward—one that aligns with the intent behind both Bill 54 and the Governor’s PLA. By investing in local workforce development through expanded CTE programs in high schools and construction career pathways at UH Maui, we can build a sustainable pipeline of skilled workers. This approach empowers local residents with career opportunities, supports our economy, and contributes to long-term solutions for housing and rebuilding efforts, especially in Lahaina.
We appreciate the opportunity to be part of this important conversation and look forward to working together with the Council on solutions that strengthen our local workforce and community.
Sincerely,
Raymond Michaels
Chairman of the Board
Construction Industry of Maui
808-268-2661
Aloha Chair Sugimura and Members of the Committee,
As a Maui born and raised construction professional who has a deep personal knowledge of the industry, I am submitting my testimony in strong opposition to Bill 54 (2025). This bill would not just hurt the majority of our local Maui based contractors, but would also hurt the residents of Maui. By forcing all contractors to comply with "Community Workforce Agreements" or otherwise Project Labor Agreements, this would both exclude most Maui based small contractors who do not want to sign on for the union based requirements and also inflate the cost of construction for the County and its taxpayers.
I would urge you all to consider the equity of what these types of agreements impose upon the individual tradesman who is proudly employed by a non-union contractor. I have heard the complaints from personal friends who have worked under PLAs on State projects over their stipulated project value thresholds (which are another topic of discussion as well), and it is quite unsettling to comprehend requiring an individual carpenter, plumber, or electrician, to pay dues to a union that he or she is not a part of, nor will they ever see the benefits from. This aspect alone should help to display how unjust (any possible unconstitutional) that these requirements are to those individuals.
Furthermore, I strongly disagree with the nature of having a "Community Workforce Agreements" in general as they are anti-competitive, display preferential treatment, and increase the cost of construction in our community. Please vote "No" on Bill 54.
Mahalo,
Dan Johnson
Project Manager
[Nationally Recognized General Contractor]
(808) 250-0020
TESTIMONY OF CODY MACDONALD
Owner, CMAC Excavation LLC
IN STRONG OPPOSITION TO BILL 54 (2025)
Maui County Council – Budget, Finance, and Economic Development Committee
Friday, April 25, 2025
Aloha Chair Sugimura, Vice-Chair Kama, and Honorable Councilmembers,
My name is Cody MacDonald and I am the owner of CMAC Excavation LLC based here on Maui. We are a small, family-run business who employs local workers and have helped build homes and infrastructure on the island, including the post-wildfire debris clean-up in Lahaina.
I submit this testimony in strong opposition to Bill 54, which would require contractors on County capital improvement projects over $500,000 to become signatories to a “Community Workforce Agreement” — in effect, a Project Labor Agreement (PLA).
This bill would exclude most of Maui’s construction industry from public work, including us. The majority of us affected by this bill are based here on the island, are open shop, and have chosen not to be union-affiliated. We hire locally, pay prevailing wages, and operate our own state-approved apprenticeship and training programs. Requiring firms like us to sign union agreements would undermine our business models, limit competition, and violate the free and fair market principles.
Each public project typically involves 20-25 subcontractors, many of whom are small, family-run operations, disadvantaged business enterprises (DBEs), or highly specialized local firms. These businesses — the backbone of our construction community — would be among the first to be harmed by this mandate, facing new barriers to participating in the very projects they’ve helped deliver for decades.
Furthermore, this bill restricts the career pathways available to Hawaii residents, especially young people entering the trades. By favoring union-only programs, Bill 54 would prevent aspiring workers from choosing among diverse training options, including non-union programs helping expand our local workforce pipeline. That is not workforce development — that is workforce exclusion!
Independent research, including from the Beacon Hill Institute, confirms that PLAs:
- Increase project costs by 12% to 18%
- Reduce competition by deterring non-union bidders
- Disproportionately hurt small and minority-owned businesses
These are not abstract statistics — these are the real impacts facing our island. At a time when we need to stretch every tax dollar to address housing, schools, and infrastructure, we should not enact policies that raise costs and exclude our local builders.
I respectfully urge you to vote NO on Bill 54. Let’s keep Maui’s projects competitive, affordable, and truly community built.
Mahalo for the opportunity to testify and for your consideration of this important matter.
Sincerely,
Cody MacDonald, Owner
CMAC Excavation LLC
cody@cmacexcavation.com
(808) 298-6876
TESTIMONY OF PETE SULLIVAN
OWNER & PRESIDENT, P.B. Sullivan Construction
IN STRONG OPPOSITION TO BILL 54 (2025)
Maui County Council – Budget, Finance, and Economic Development Committee
Friday, April 25, 2025
Good afternoon, Chair Sugimura, Vice-Chair Kama, and Honorable Councilmembers,
My name is Pete Sullivan, and I am the Owner and President of P.B. Sullivan Construction. On behalf of my business partner, Dave Sullivan, and our entire team, I am submitting this testimony in strong opposition to Bill 54 (2025), which would require contractors on County capital improvement projects over $500,000 to become signatories to a “Community Workforce Agreement”—in essence, a Project Labor Agreement (PLA).
P.B. Sullivan Construction has proudly served Maui for over 30 years as a locally owned merit shop contractor. We’ve built schools, homes, infrastructure, and community facilities—employing local residents, offering a state-approved apprenticeship program, and paying prevailing wages. Bill 54 would unfairly exclude qualified, merit-based contractors like ours from bidding on public projects, despite our proven commitment to quality, safety, and workforce development.
Mandating union agreements would force our employees—many of whom have been with us for decades—to give up their existing benefits and retirement plans. These are workers who have already invested years into their futures. Under a PLA, they would face delayed access to health coverage and be required to start over with unfamiliar retirement plans—at a time in life when stability is most important.
Furthermore, we know from both national data and local experience that PLAs increase construction costs by 12% to 18%. This added cost will not be absorbed by contractors—it will be passed on to Maui’s taxpayers. That’s not sustainable, and it’s not fair.
We fully support a competitive, qualified, and local workforce. But this bill does the opposite. It restricts competition, limits opportunity for local businesses, and prioritizes union affiliation over performance, integrity, and community investment.
Unions play an important role in our industry, but they should not have exclusive control over public work. Public projects should remain open, competitive, and fair—ensuring that the best-qualified contractors, regardless of union status, have the opportunity to serve our community.
I respectfully urge you to vote NO on Bill 54.
Thank you for the opportunity to testify.
Sincerely,
Pete Sullivan
President & Owner
P.B. Sullivan Construction
TESTIMONY OF Jeff Barrett
CEO of JCC Electric, Inc.
IN STRONG OPPOSITION TO BILL 54 (2025)
Maui County Council – Budget, Finance, and Economic Development Committee
Friday, April 25, 2025
Aloha Chair Sugimura, Vice-Chair Kama, and Honorable Councilmembers,
My name is Jeff Barrett, and I am the CEO of JCC Electric, Inc. Our company has been performing high-quality electrical construction projects in Hawaii for over 28 years on several of the islands, including Maui. During this time, we have been employing Hawaii residents. We are locally owned and community-invested, and are actively involved in training Hawaii’s next generation of skilled construction professionals.
I submit this testimony in strong opposition to Bill 54, which would require contractors on County capital improvement projects over $500,000 to become signatories to a “Community Workforce Agreement” — in effect, a Project Labor Agreement (PLA).
This bill would exclude us from Maui’s construction industry for performing public work. We are an open shop contractor and have chosen not to be union-affiliated. Yet we hire locally, pay prevailing wages, and register our apprentices in a state-approved apprenticeship and training program. Requiring us to sign union agreements would undermine our business model, limit competition, and violate the free and fair market principles.
Each public project typically involves 20 to 25 subcontractors, many of whom are small, family-run operations, disadvantaged business enterprises (DBEs), or highly specialized local firms. These businesses — the backbone of our construction community — would be among the first to be harmed by this mandate, facing new barriers to participating in the very projects they’ve helped deliver for decades.
Furthermore, this bill restricts the career pathways available to Hawaii residents, especially young people entering the trades. By favoring union-only programs, Bill 54 would prevent aspiring workers from choosing among diverse training options, including non-union programs helping expand our local workforce pipeline. That’s not workforce development — it’s workforce exclusion.
Independent research, including from the Beacon Hill Institute, confirms that PLAs:
- Increase project costs by 12% to 18%
- Reduce competition by deterring non-union bidders
- Disproportionately hurt small and minority-owned businesses
These are not abstract statistics—these are the real impacts facing our island. At a time when we need to stretch every tax dollar to address housing, schools, and infrastructure, we should not enact policies that raise costs and exclude our local builders.
I respectfully urge you to reject Bill 54. Let’s keep Maui’s projects competitive, affordable, and truly community-built.
Mahalo for your time and service.
Sincerely,
Jeff Barrett
JCC Electric, Inc.
Email: jeff.jccelectric@gmail.com
808-333-6986
Aloha Chair Sugimura and Members of the Committee,
My name is Randall J. Stevens, VP, and I work for Global Specialty Contractors, Inc. with a satellite office on Maui.
I’m here today to express strong opposition to Bill 54, which would mandate “Community Workforce Agreements” — or
project labor agreements — on all Maui capital improvement projects over $500,000.
This bill would shut out the majority of Maui’s local contractors—hardworking, family-run businesses that employ local
workers, train apprentices, and have built this island’s schools, homes, and infrastructure. Most are open-shop firms and do
not belong to a union. Under this bill, they would be forced to sign union-style agreements just to bid on public projects.
That’s not workforce development — it’s a workforce exclusion.
Every public project includes 8 to 10 subcontractors — many of them small, specialized, or DBE firms — who would be
harmed. It would also limit choices for young people trying to enter the trades by restricting access to a variety of training
and apprenticeship programs.
Studies show PLAs raise construction costs by 12% to 18% and shrink the pool of bidders by over 30%. Why would we
want to spend more and exclude our local workforce?
If this bill passes, it’s Maui’s workers and taxpayers who will lose.
I urge you to vote no on Bill 54 and keep public projects open, competitive, and fair.
Mahalo for the opportunity to testify,
Randall J. Stevens
Vice President, Hawaii Operations Manager
Global Specialty Contractors, Inc
License# ABC-16925