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HomeMy WebLinkAbout2019-03-07 Salary Commission Minutes Page 1 TRANSCRIPT OF PROCEEDINGS SALARY COMMISSION PUBLIC HEARING AND SALARY COMMISSION MEETING Held at the Hawai ʻ i County Building, 25 Aupuni Street, Hilo, Hawai ʻ i, 96720 commencing at 10:00 a.m. on March 7, 2019. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 2 1 APPEARANCES 2 3 CHAIR: 4 GEORGE W. CAMPBELL 5 6 BOARD MEMBERS: 7 THOMAS E. FRATINARDO 8 JAMES W. HIGGINS 9 HAROLD D. DOW, M.D. 10 NELSON H. HARANO 11 JUDY A. GREENBAUM 12 MILTON PAVAO, P.E. 13 WILLIAM V. BRILHANTE, JR., EX-OFFICIO 14 ABSENT: FLORENCE K. IKEDA 15 ALSO PRESENT: 16 AMY SELF, DEPUTY CORPORATION COUNSEL 17 GLYNIS YAMADA, COMMISSION SECRETARY 18 JENNIFER SAKAMOTO, HR 19 MICHELE LAMKIN, HR 20 DEANNA SAKO, FINANCE DIRECTOR 21 PAULA PAVAO 22 SCOTT RUEDY, KONA, VIDEOCONFERENCE 23 24 25 ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 3 1 CHAIR: Okay. Good morning. Call this 2 hearing to order. And the first thing I'd like to do 3 is -- my name is George Campbell. I'll be the hearing 4 officer today. I'd like to have the members of the 5 commission introduce themselves starting with Dr. Dow. 6 MR. DOW: Harold Dow, District 5. 7 MR. FRATINARDO: Thomas Fratinardo, District 8 1, and Vice-Chairman. 9 MR. PAVAO: Milton Pavao. 10 MR. HIGGINS: Jim Higgins, 7. 11 MS. GREENBAUM: Judy Greenbaum, District 9. 12 CHAIR: Thank you all for being here. 13 The purpose of the meeting is pursuant to 14 Section 91-3 of the Hawai ʻ i Revised Statutes. This 15 Salary Commission is holding a public hearing to hear 16 testimony concerning the proposed amendments to the 17 Rules of the Salary Commission, Title III. 18 The Rules of the County of Hawai ʻ i Salary Commission 19 include, but are not limited to the following: 20 Amendments to the rules to reflect changes to the 21 Hawai ʻ i Revised Statutes Chapters 91, 92, and 92(f), 22 and to adopt a new rule to reflect amendments to the 23 Hawai ʻ i County Charter. 24 So, first of all, Scott, from the Kona -- from 25 the Kona Council office, anybody there to testify this ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 4 1 morning? 2 MR. RUEDY: Good morning, Chair, we have no 3 testifiers for the Salary Commission today. 4 CHAIR: Okay. Thank you. 5 Yes. So -- wish -- all persons wishing to 6 testify must register with the Salary Commission 7 staff. Please submit any written testimony to the 8 staff or Salary Commission for consideration. All 9 written e-mail and oral submission shall be fully 10 considered and included in the record of the hearing. 11 Commission will consider all comments and materials 12 before taking a final action today at its regular 13 scheduled meeting following this public hearing, but 14 not before 10:30 a.m. 15 So, are there any testifiers here in the 16 chambers in Hilo? There's not. And if there are no 17 comments, then I would move to adjourn this -- Salary 18 Commission hearing. 19 MR. HIGGINS: So moved. 20 MR. FRATINARDO: Second. 21 CHAIR: So, hearing is adjourned and regular 22 meeting of the Salary Commission will start at 10:30 23 a.m. 24 (Recessed at 10:06 a.m. and reconvened at 25 10:31 a.m.) ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 5 1 CHAIR: All right. I'd like to call the 2 Salary Commission meeting to order. And I'd like to 3 have a roll call, let's start with Nelson. 4 MR. HARANO: Nelson Harano, West Hawai ʻ i. 5 MR. DOW: Harold Dow, District 5. 6 MR. FRATINARDO: Thomas Fratinardo, District 1 7 and Vice-Chair. 8 MR. PAVAO: Milton Pavao, District 4, I think. 9 MR. HIGGINS: Jim Higgins, 7. 10 MS. GREENBAUM: Judy Greenbaum, District 9. 11 MR. BRILHANTE: Also present is William 12 Brilhante, HR Director. 13 MS. SELF: And Deputy Corporation Counsel, Amy 14 Self. 15 CHAIR: Thank you, Sharon, and all the rest of 16 you are here. I appreciate you being with us this 17 morning. So, let's start off with any statements from 18 the public. 19 So, Mr. Sadegh? If you -- yes, please. 20 MR. SADEGH: Would you like to introduce our 21 new member today -- 22 CHAIR: Well, I have to go by the procedures 23 -- 24 MR. SADEGH: By the procedures, sorry. 25 CHAIR: I will do that -- ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 6 1 MR. SADEGH: Thank you. 2 CHAIR: Three minutes as usual, Sir. 3 MR. SADEGH: My name is -- that makes me 4 nervous when I feel like I cannot complete what I need 5 to say. I'm as much concerned about my time as you 6 guys are. My name is Abolghassem Abraham Sadegh. I'm 7 the founder of the Universal Realm of the Lord 8 Almighty believing in God is -- 9 THE COURT REPORTER: Excuse me, can you go 10 slower? I'm sorry. 11 MR. SADEGH: I want to take advantage of the 12 three minutes. So, for that three minutes -- start 13 again? 14 Okay. Sorry. My apology. 15 THE COURT REPORTER: Sorry, I mean, I'm not 16 used to your accent. 17 Abraham -- 18 MR. SADEGH: All right. Okay. I'm the 19 founder of the -- Abolghassem Abraham Sadegh. I am 20 the founder of the Universal Realm of the Lord 21 Almighty. Briefly, I will explain that. I'm from 22 Iran. I was born in a Shiite family in 1940. I was 23 here for fifteen years, went back to Iran during the 24 Shah regime, and ended up in the present government 25 and realized the Shiite sector is not what I was born ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 7 1 into, is actually a call to a personality. 2 So, I searched and I found what I now call the 3 Universal Realm of the Lord Almighty. Believing in 4 God is optional. God judges us by what goes on in our 5 hearts, not how we perceive ourselves. Also, every 6 human being should be the savior in any capacity by 7 fighting injustice and helping itself and others and 8 doing no harm. 9 Now, it has been said that the most important 10 -- I would like you to imagine a pyramid, Ladies and 11 Gentlemen, you're at the top, tip of the iceberg, at 12 the top in terms of the comfort of your life, the 13 positions and responsibilities that you have. And it 14 has been said that the greatest among you is the 15 least. 16 That means this -- I think Mr. Ono suggested 17 this, that they even close this Salary Commission, 18 change it, cancel it. Believe you -- me, the world will 19 not go upside down. But look at the bottom of the 20 pyramid, where the homeless, the people who are on 21 food stamp, like I am. I'm being persecuted for my 22 faith by the police department, so they don't let me 23 get a job. And the people who work at the bottom are 24 actually working -- imagine McDonald -- if those 25 people quit -- if you guys quit, nothing is going to ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 8 1 happen, I assure you. If those guys quit, you're 2 going to have a hundred people outside waiting to see 3 what happened. 4 So, I'm looking at the -- please consider a 5 pyramid. We have a County of 200,000 people. Let's 6 consider the entire 200,000 as members of one family. 7 Let's consider the council as a corporation with the 8 CEO that is concerned about every single human being 9 that legitimately belongs to this County, and apply 10 the pledge of allegiance, liberty and justice for all. 11 Justice especially. 12 You are comfortably sitting here, as I said, I 13 watched -- we have modern slavery. The people working 14 at McDonald, they really do not have time to scratch 15 their head. A girl has multiple tasking, giving 16 people what they want, going back and preparing the 17 previous one, do whatever else it is that in-between 18 -- all people have the right to enjoy this life. That 19 is God. 20 So, make this -- this twin buildings, twin 21 chapels should be the most sacred place in the 22 universe because you guys administer justice. And 23 let's create a paradise here on our island, so it 24 would not be hell for a few, and paradise -- the rest 25 of the animal kingdom had paradise before we appeared. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 9 1 Thank you. 2 CHAIR: Thank you. All right. 3 The next thing on our agenda, let's move on to 4 item 3 is approval of the minutes. I'd accept a 5 motion for approval. 6 MR. PAVAO: So moved. 7 MR. HIGGINS: Second. 8 CHAIR: Okay. We have a motion from, he 9 thinks, District 4, and January 24th is the minutes, 10 thank you. And second by Jim. 11 Any other discussion or changes? All right. 12 All in favor say, “Aye.” 13 (All members responded affirmatively.) 14 All opposed? Same carried unanimous. No 15 communications. 16 So, new business. First thing is to introduce 17 our new Commissioner, Judy Greenbaum. 18 So, Judy, if you would like to tell us a little 19 bit about yourself. 20 MS. GREENBAUM: Hi, I'm Judy. I have been on 21 the Big Island since 1990, and have been running an 22 accounting practice for the past twenty years or 23 thereabouts on the west side in District 9. I've had 24 my kids here and raised them. And I'm thankful to be 25 a part of the Commission. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 10 1 CHAIR: Welcome, glad you're with us. 2 MS. GREENBAUM: Okay. 3 CHAIR: Be careful of that guy sitting next to 4 you. 5 Okay. All right. So, I guess the next thing 6 on the agenda is a briefing by the finance director, 7 Deanna, please. I think, you know, you may want to 8 lead in with what's going on budget-wise and the like 9 and I know we have a lots of questions. So, thank you 10 for being here today. 11 MS. SAKO: Deanna Sako, Director of Finance. 12 So we did just on Friday, submit our budget, our first 13 draft on March 1st to the county council. So that is 14 available and it's a public document. And it is 15 balanced, revenues do equal expenditures. You know, 16 it has grown slightly because we added the general 17 excise tax fund and the short-term vacation rental 18 funds. But those are not necessarily available for 19 general, you know, salaries, and wages. They do apply 20 to certain individuals but not Countywide. So, we're 21 still with the general fund, which is what pays for 22 most people's salaries, but then we do have special 23 funded salaries and wages. 24 So, I'm not sure exactly what all your 25 questions are, but it is a lot easier for me to talk ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 11 1 to you today because we have submitted the budget. So, 2 I'm happy to answer your questions. 3 CHAIR: Jim? 4 MR. HIGGINS: I have a few but, first of all, 5 a giant kudos to you for attempting to put that 6 together every year. I can't imagine a tougher job. 7 MS. SAKO: I am very fortunate to have a lot 8 of good people to help us with this. 9 MR. HIGGINS: Thank you very much, anyway, for 10 your service. Please enlighten a little bit more than 11 we did last year when we were all kind of rookies and 12 we were stumbling around blindly. The wages, 13 salaries, benefits, and the mandated contribution to 14 the retirement plan -- of the 573 million dollars, how 15 much do those comprise -- how much is that? 16 MS. SAKO: We have to have Ted go update it, 17 but in total the -- it's roughly about 62 percent. I 18 think we're looking at it being about 63 percent for 19 this fiscal year, but I think I'll tell him to just 20 double check those figures. 21 And so, we did, indeed, have increases to the 22 employees' retirement system rates. Police and fire, 23 especially, you know, it went from 31 to 36 percent. 24 And then general employees, I think was from 19 to 25 22 percent. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 12 1 And then in fiscal year '21, which would be 2 the following fiscal year, we’ll have the last of the 3 four-year increases for the ERS rates. And police and 4 fire will go up to 41 percent, and general employees 5 up to 24 percent. And then, hopefully, we won't have 6 any additional increases, but that's set by the 7 legislature based on the recommendation from the ERS 8 Board. 9 MR. HIGGINS: So, looking back, say, over the 10 last ten years -- would that 63 percent be fairly 11 consistent or has that grown as a percent? 12 MS. SAKO: Excuse me. It's grown quite a bit. 13 It's grown from about 50 percent to 63 percent. 14 MR. HIGGINS: Yeah. 15 MS. SAKO: And, you know, it's not because of 16 growth in a number of employees. That's remained 17 relatively consistent. This particular budget -- yes, 18 we've added positions but, historically, when you look 19 at the employee count it's remained relatively stable. 20 But, you know, we also went through a recession. And, 21 you know, so we did ask departments to cut and 22 whatnot. 23 So, the percentage, as a whole, has been growing 24 But, you know, it's time to start looking at ways to 25 get equipment and other things back in the budget, too. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 13 1 MR. HIGGINS: Yeah. Well, if that continues 2 the way it's going, at 50 to 63 percent, that's rather 3 substantial. 4 MS. SAKO: Uh-hmm. 5 MR. HIGGINS: It, obviously, cannot continue. 6 MS. SAKO: Right. And I think the State knows 7 that as well 'cause, you know, one of the our 8 situations is that we're mandated to participate in 9 ERS and EUTF and all the state programs but, yet, we 10 don't have representation on their board. So, you 11 know, from that 50 to 63 percent, you know, we've gone 12 through substantial increases in the employees' 13 retirement system rates. And so, because of that, 14 that's a significant portion of that. But we're also 15 very, you know, we're -- are a people-driven business. 16 We have police officers and firefighters and all of 17 that. So, salaries and wages will always be a 18 significant portion of the budget. 19 MR. HIGGINS: Yeah. What's your guess on our 20 63 percent, how does that compare to other 21 jurisdictions -- the other counties, what do you 22 think? 23 MS. SAKO: I can see if we compared that. I 24 would guess in Hawai ʻ i we're all relatively the same. 25 Just because we have to pay the same ERS rates, we ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 14 1 have to pay the same EUTF rates -- so I'm thinking we 2 will all probably be relatively the same. 3 MR. HIGGINS: What would you consider to be a 4 real danger point, when that goes to -- I mean, you 5 seem to be comfortable and -- 6 MS. SAKO: I don't know if it's necessarily a 7 particular percentage because it might depend just on 8 how the budget grows and what other changes we go 9 through. But it's at the point where, you know, if 10 we're going to have employees built up, to make sure 11 they have equipment to get their jobs done, and things 12 like that. 13 So, it might not be specifically just the 14 percentage but, you know, the fact that we're able to 15 carry out everything we need to do for the County. 16 MR. HIGGINS: Yeah. Well, I'm concerned, did 17 you look nationwide, there's other states that are 18 having big trouble and same problem, unfunded 19 liabilities, et cetera, and cost of government. And 20 we're all taxpayers in here, so I'm concerned -- I 21 think our Salary Commission represents the people, 22 meaning taxpayers. And we're all representing folks 23 from all of our districts. So, I would have a real 24 hard time getting on this treadmill of every year 25 approving more wage increases, salary increases, ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 15 1 benefit increases -- if that would lead to my neighbors 2 being taxed more. 3 So, it's, kind of, a deadly situation. So I'm, 4 kind, of wondering -- when does it become too deadly 5 because, you know, you see Detroit has declared 6 bankruptcy some time ago – because, basically, the same 7 cost push of salaries and wages. So, when would you 8 tell us that we're getting too high on that 9 percentage? 10 MS. SAKO: I think -- I think, you know, 11 there's a lot of factors playing into it and one is 12 that the State has taken action so that newer 13 employees don't all get the same retirement benefits. 14 So, it may still be ten years away, but we do expect 15 there to be some cost savings in the future related to 16 that. But the other thing is -- is that, while we're 17 very thankful for everything that the Salary 18 Commission does, the significant portion of the 19 increases in our salaries and wages are not set by the 20 Salary Commission, it's from the collective 21 bargaining. 22 And so, those are the ones that are more likely 23 to put burden on the County -- and have. So, I'm not 24 sure, you know -- there will be a time. And, yes, I'm 25 sure I will raise my hand and go, whoa, wait, wait, we ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 16 1 can't stop. But right now, you know, it really 2 depends on how our property values go. It depends on 3 when the next recession hits. You know, there's so 4 many factors that play into everything. But, right 5 now, we were able to balance the budget with the pay 6 increases that have already been granted by those 7 collective bargaining and our Salary Commission. 8 MR. HIGGINS: One final question. Has there 9 ever been to your knowledge since, you've been involved 10 on the County finance area, has there ever been a time 11 when there has been either a wage salary reduction or 12 going flat? 13 MS. SAKO: I wouldn't -- I don't know that we 14 call it a reduction but we, definitely, had furloughs 15 that benefit the County and those would -- you know, 16 with the collectively bargaining -- with the 17 bargaining units. And then, we definitely have had a 18 flat probably during the same period of time because 19 not everyone was able to participate in the furloughs. 20 So, like police and fire, I believe their salaries 21 remained flat at that time. 22 MR. HIGGINS: Okay, thank you very much. 23 CHAIR: Any other questions? 24 MR. HARANO: Deanna, what worries me the most 25 is the unfunded pension liabilities in this equation. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 17 1 And what you have mentioned, waiting for that next -- 2 that next tragedy or whatever to hit, right. 3 Off the budget, the current proposed budget, 4 how much of that is coming from 1, the increase in the 5 GET, and 2, the TAT tax, the Transit Accommodation 6 Tax? You said that's part of the budget, right? 7 MS. SAKO: Yeah. So, TAT has been part of our 8 budget for a while -- and that's actually 19 million 9 dollars. That's our portion that the State gives us 10 from all the transit accommodation taxes that they 11 collect. And then the new fund, the short term 12 vacation rental enforcement fund, is actually going to 13 be from the registration fees now that the vacation 14 rentals have to register. 15 So, that portion is very small. I think it was 16 less than a million dollars. The general excise tax 17 fund for the coming year, we're projecting at 25 18 million, and that's based just on the first quarter 19 percent that's been approved. The additional GET tax 20 still has one more reading at the council, so that's 21 not included in this version of the budget. But 22 depending on what happens, it will be included in the 23 May budget. 24 MR. HARANO: Okay. But -- okay, so the 25 quarter percent has been -- that has passed, right? ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 18 1 MS. SAKO: Yes, that's passed, and that's in 2 the budget -- and that's 25 million is the projection 3 for the coming fiscal year. 4 MR. HARANO: No, no, no. 5 MS. SAKO: I'm sorry. 6 MR. HARANO: Okay. Starting January 1st, 7 2019, we had the quarter percent increase. I'm 8 talking about the second one that just got passed. 9 MS. SAKO: The second one has not been passed, 10 yet. There's one more reading. It will be next week. 11 There's one more reading. 12 MR. HARANO: I must have misread the paper 13 then. 14 MS. SAKO: Yeah. So, there's one more reading. 15 And we also have one more version of the budget that 16 we submit. This year it will be on May 3rd. So 17 depending on what happens next week that would be 18 incorporated into the next version of the budget. But 19 in the budget that we submitted, 25 million is from 20 general excise tax. 21 MR. HARANO: You mentioned that the 22 application for the short-term rentals is a small 23 number, granted the application fee is small, too -- 24 well, relative, right. 25 So, how much percent compliance are you ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 19 1 expecting, you know, people saying, okay, I'm -- you 2 know, this is the new law. 3 MS. SAKO: Well, you know, I would like to 4 think that we will have one hundred percent 5 compliance. I know that's not true. So, part of 6 what's in the budget is also additional positions to 7 enforce that -- as well as some software to be able to 8 monitor what's advertised on the internet -- so that 9 they will be able to find the people that are not in 10 compliance and bring them into compliance. 11 MR. HARANO: Okay. Thank you. 12 MR. DOW: I have a question. This proposed 13 budget, did you allow or project for any increase in 14 the salaries of the positions that the Salary 15 Commission has jurisdiction on? 16 MS. SAKO: We did not -- we, at this first 17 version, we only put in what has been approved so far. 18 But we are very well aware that not only the Salary 19 Commission, but several of the collective bargaining 20 units are still under -- currently having 21 negotiations. And I know Mr. Brilhante will be 22 updating you on that later. So, we are aware and do 23 have a figure in mind that we do need to put in in the 24 May budget -- yes. 25 MR. DOW: I keep looking for -- online, for ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 20 1 the comprehensive annual financial report. 2 MS. SAKO: Yes, is it not there, yet? 3 MR. DOW: No, not as of this morning. 4 MS. SAKO: Okay. I will follow up on that. 5 The last I knew they were waiting for them to have the 6 ADA compliant version to put online. But after I'm 7 done here, I'll walk upstairs and get you a hard copy. 8 MR. DOW: Thanks very much. That's a very 9 revealing reading in my mind. 10 MS. SAKO: It is, yes. And I'm glad that you, 11 actually, take time to read because our staff spent a 12 lot of time putting that together. 13 MR. DOW: Also, worthwhile reading is the 14 annual report by the County. 15 MS. SAKO: Yes. 16 MR. DOW: I was unaware of the scope of 17 services offered by the County until I read through 18 that report. And I would urge all the members here to 19 read that. That is available online right now. Thank 20 you. 21 MS. SAKO: Thank you. 22 MS. GREENBAUM: Deanna, I had a question. So, 23 now you were saying that it increased from 50 to about 24 63 percent in what timeframe? 25 MS. SAKO: It was about a ten-year period. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 21 1 MS. GREENBAUM: Ten-year period. And at that 2 time we've had no additional staffing especially after 3 the recession? 4 MS. SAKO: We have gone through ups and downs, 5 but comparing that 50 percent year to where we're at 6 today, I believe the staffing is relatively the same, 7 there's less than 50 people difference. 8 MS. GREENBAUM: Hasn't the population also 9 grown on the Big Island, so we're still operating with 10 the same staffing? 11 MS. SAKO: Yes. And that's one of the reasons 12 why several positions were added in this proposed 13 budget, especially for police. 14 MS. GREENBAUM: And you had mentioned about 15 additional equipment, is the equipment spread out in 16 the depreciation format or is it all accounted for in 17 the year? 18 MS. SAKO: Because of the way the budget is, 19 it depends if we release our buy-out rate, so it's 20 where ever the cash expenditure is. 21 MS. GREENBAUM: Okay. So, it's based on cash. 22 Thank you. 23 MS. SAKO: Uh-hmm. 24 CHAIR: Any other questions? Thank you very 25 much. Appreciate spending your time in coming. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 22 1 MS. SAKO: Thank you for inviting us. 2 MR. HIGGINS: You don't really mean that. 3 CHAIR: Okay. Let's move on then to Item 6 on 4 our agenda. And the first thing is to review the 5 compensation plan that, you know, our Salary 6 Commission Plan that we approved two meetings ago and 7 revised at the last meeting. And I don't know if any 8 of you have any changes you want to make to that or 9 any discussion you want to have about that plan at 10 this point (SEE ATT. A). 11 I will say that my intent as Chair is to start 12 following that Plan, which means the next three people 13 on the list after today, with the finance office, 14 we'll invite to come to our next meeting with the sole 15 purpose of making sure we understand all of the people 16 -- responsibilities of the people that we give raises 17 for. And, as Dr. Dow pointed out, there are a lot of 18 services offered by the County, but our particular 19 interest is the people who lead the major elements of 20 this County and what they do. It gives us a better 21 idea for -- at least in our recommendation we might 22 come up with. 23 So, any thoughts, changes? Last time, 24 Mr. Higgins came up with a good change, which we voted 25 for and approved. I wanted to make sure that we were ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 23 1 considering the outside private industry. Anything 2 else anybody wants to change or modify in that Plan 3 before we start using it in earnest? 4 Hearing nothing, let's move onto the next item 5 on the agenda -- update by the Human Resources 6 Director, Bill, on the collective bargaining agreement. 7 And you can go into the next one if you like. 8 MR. BRILHANTE: Chair, William Brilhante, HR 9 Director. The items we're going to be discussing 10 first is the collective bargaining agreements -- the 11 status and updates regarding the CBAs. As you may or 12 may not know, the State through HRS has designated 13 four exclusive units to represent all of the County 14 employees that come under the collective bargaining 15 status or civil service status -- union, you know, 16 status. 17 We have -- first is UPW, which is the United 18 Public Workers. UPW is, currently, under a four-year 19 contract that expires two years from now. And we've 20 gone with -- those salaries have been captured and 21 identified. They're set forth as to what the 22 increases will be in the next two years, roughly about 23 two percent. 24 SHOPO, which is the State Organization of 25 Police Officers, they represent all the County police ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 24 1 officers, they're likewise in a two-year contract -- a 2 four-year contract, which was entered into two years 3 ago -- so they have two more years. And their raises 4 were stated and probably codified in the budget 5 proposal. That's, again, a two-year raise for this 6 year and the next year to fulfill the final years of 7 the contract. They're also getting longevity increases 8 during that period of time, which is like a step 9 increase -- rates equal to like seniority. And they're 10 getting an increase in the gun allowance, an increase 11 in the standard of conduct allowance -- or offset. 12 And they're also getting a one-time lump sum payment 13 -- we don't want to call it a bonus. It's a payment 14 averaging between 1,800 to $2,000. It's one payment 15 this year. And it's based on their seniority in the 16 department, whether it be 1,800 or $2,000 -- like I 17 said -- and then there's another lump sum payment 18 in the beginning of next year. 19 And the reason those payments and, again, this 20 was a decision that was handed down by an arbitrator 21 in a binding arbitration decision. And the arbitrator 22 felt, because two years ago when they were negotiating 23 their contract – SHOPO -- the economy going forward 24 was so uncertain, it was unclear. The arbitrator felt 25 that was the safest way to allow the parties to go ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 25 1 forward. And the fairest mechanism possible was to 2 issue a lump sum payment just to, kind of, protect both 3 parties. 4 CHAIR: Is that included, then, as part of the 5 base salary? 6 MR. BRILHANTE: It's not part of their base 7 salary. That's somewhat of a loaded term because as 8 the finance director alluded to, in 2012 the State 9 Legislature changed. They really made it clear as to 10 what constitutes base salary. And here for them, for 11 the ERS, they're using quote, unquote, "base salary" 12 as, you know, for any employee hired after 2012. That 13 base salary is all that gets calculated into their 14 retirement benefits. So -- no, as far as ERS is 15 concerned the lump sum payments are not included in 16 that base salary. But, for all intents and purposes, 17 going forward -- as we set the budget going forward -- 18 that would be part of their base salary. 19 My understanding is for SHOPO, for these next 20 two years, if you include, like I -- allude to the 21 good conduct, the gun allowance, and this lump sum, it 22 looks like a police officer -- the car allowance would 23 estimate -- the estimation is they would get about an 24 additional $8,000 per year in additional payments. 25 MR. PAVAO: Excuse me, what is a gun ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 26 1 allowance? 2 MR. BRILHANTE: It's a special provision for 3 the police officers because the police department -- 4 first and foremost -- they don't want to go back into 5 the purchase-of-ammunition business. They don't want 6 to be ammunition stores. So, what they do is they've 7 identified certain expenses associated with the 8 issuance of the police officers duties – firearm -- 9 and they allow for -- the gun allowance is to pay for 10 the, you know, purchase of ammunition, for training 11 and the like -- and also for, you know, gun cleaning 12 and things associated with the upkeep of a firearm. 13 And there's also consideration given -- oftentimes a 14 number of police officers will have what is identified 15 as a “secondary weapon,” and that gun allowance is 16 supposed to go to the purchase of that secondary 17 weapon, you know. 18 MR. PAVAO: The gun allowance is a monthly 19 thing? 20 MR. BRILHANTE: No, it's a one time. 21 MR. PAVAO: One time? 22 MR. BRILHANTE: Yeah. 23 MS. GREENBAUM: I have a question. So the 24 8,000, that's over and above their base, is that also 25 covered in the retirement plan? Do they match -- ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 27 1 MR. BRILHANTE: It depends on the employees 2 hired prior to 2012 -- well, I think for the 3 traditional fringe benefits, the standard answer would 4 be “no.” So, but prior to 2012, there may be some 5 consideration. I don't think we got that clear as to 6 whether or not that one-time lump sum benefit would be 7 included. My understanding is employees hired prior 8 to 2012, the lump sum would be included in the 9 calculation. Employees hired after 2012, it would not 10 be. We got that from the state ERS. 11 So, that's the first two -- UPW, SHOPO, current 12 Contract. We know exactly what we're paying. The 13 third one is HFFA, which are our firefighters. I was 14 absent in the last meeting because we were involved in 15 an arbitration. Impasse was declared. We couldn't 16 reach an agreement with the union regarding the 17 continuation of a contract. They're under a two-year 18 contract which expired at the -- well, it's expiring 19 June 30th of this year -- 2019. So, we did -- we 20 impassed. We couldn't reach a settlement agreement 21 with the union -- so the employers' group, which is 22 comprised of the four county jurisdictions and the 23 State. 24 And we're negotiating with the union. We 25 couldn't reach an agreement, so they declared an ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 28 1 impasse person to the HRS that went to arbitration -- 2 arbitration hearing concluded last month. The 3 arbitrator -- unfortunately, I was on the panel. The 4 arbitration panel consists of an independent 5 arbitrator, a representative from the employers' group, 6 which is myself, and then a representative from the 7 union which was Dr. Hewitt from Honolulu. So, that was 8 the arbitration panel. So, the hearing closed. The 9 matter is taken under advisement. We're in the 10 process of coming up and reviewing the arbitrator's 11 decision. 12 It looks like from the information that I've 13 been privy to, and pretty much circulated, is that the 14 fire agreement is going to be almost verbatim, fairly 15 similar to the financial benefits that SHOPO received 16 for their additional -- for their final two years of 17 the contract. So, we're looking -- and I can't say for 18 sure because it's up to the arbitrator to make his 19 final decision in his award. It looks like it's going 20 to be two percent per annum, continuation of step 21 increases, which was, you know, the longevity pay. 22 And they're going to, I think information to 23 me, you know, fairly reliable that the arbitrator is 24 going to adopt the same lump sum payment that the 25 police officers receive in the same amounts and over ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 29 1 the same period of time. 2 So that's what that looks like. 3 HGEA, we're in the process of negotiations. 4 They just recently declared an impasse for all the 5 units for HGEA. That's your -- generally, your 6 white-collar office workers. There are several units 7 -- Units 2, 3, 4, 13, which the County -- you know, we 8 have employees in those units, so unlike in years 9 past, HGEA lists cycle decided that they're going to 10 run the arbitration for all of the units 11 independently. So, they're not going to combine any of 12 the units. So, as it stands right now, it looks like 13 we're going to have five separate arbitrations, you 14 know -- processes going forward. 15 My, you know, my personal opinion is, I don't 16 see where, you know, any -- when, where -- any 17 significant changes to what the other three – now, by 18 the time we go through this arbitration, we should 19 have three other decisions or, you know, contracts in 20 police, fire, SHOPO, and UPW. And they seem to be 21 fairly consistent across-the-board, two percent annual 22 increases, or salaries, and some, you know, I guess 23 some consideration for some type of lump sum payment 24 and then the like. 25 So, I don't see where we're going to deviate, ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 30 1 where an arbitrator would deviate much from there. 2 But, you know, it is what it is. So, we'll see what we 3 end up with going forward. 4 And there's significant cost associated with 5 that because all of the expenses of an arbitration 6 are shared equally between the employers' group, you 7 know, the counties and the State, as well as the 8 union. And for HGEA to be going with -- requesting 9 five separate arbitrations, that's hiring five 10 separate arbitrators. Plus, the State has nurses, 11 DOE, principals and administrators, which -- thank 12 goodness -- the County doesn't have. When it comes to 13 paying salaries, those are all on the table as well. 14 And they're looking for independent arbitration for 15 each of those as well. 16 To me, in my opinion, that seems like a very 17 costly process going forward. But, you know, I don't 18 make that decision -- that's for them to make. And 19 they have to represent their members in the best way, 20 you know, possible. 21 So, that's where we're at. The arbitration for 22 HGEA is anticipated to -- for the first unit should be 23 going forward probably the end of April -- beginning of 24 May -- and each of the other units would follow after 25 that. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 31 1 So that's the update for the collective 2 bargaining. Anybody has any questions? 3 CHAIR: Yes. Are those last ones you 4 mentioned -- is their contract time up now? 5 MR. BRILHANTE: They're the same as fire. The 6 current contract for HGEA -- all of them will expire 7 June 30th of this year. 8 MR. HIGGINS: Yeah, fire. 9 MR. BRILHANTE: Same as fire. 10 You know, one thing I want to say about the 11 arbitration, you know, awards is, you know, as the 12 finance director alluded to, once the arbitrator makes 13 a decision, that's a binding arbitration. We don't 14 have much room to say, “Well, we're going to appeal 15 this” or “We're going to take this up.” 16 But, what's interesting is, under the HRS, all 17 cost items included in an arbitrator's award related 18 to collective bargaining needs to be approved by each 19 employer group's respective legislative bodies. So, 20 once the award is issued by the arbitrator, the 21 decision -- we have ten days to get that item -- each 22 of the jurisdictions in the State have ten days to get 23 that item in front of their respective legislative 24 bodies. The Legislature -- our County Council has the 25 ability to either accept or reject the award. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 32 1 MR. HIGGINS: Even though it's binding. 2 MR. BRILHANTE: Well, pursuant to the HRS, 3 that's one caveat -- interesting caveat that HRS 4 allows. And, so far, we haven't seen anything like 5 that to date. But I will tell you this, two years ago 6 with the fire contract, Kaua ʻ i voted 4 to 3 to approve 7 the contract. So, we're hearing rumblings that that 8 body, the Kaua ʻ i Council may have shifted a little -- 9 what would be more to the right -- more conservative 10 -- conservative spending, you know. And that's 11 something that we're, kind of, keeping a close eye on. 12 Because under the HRS, if any one of the entities 13 rejects the cost increases, then the whole contract 14 goes back to the beginning. The process starts all 15 over again. 16 So, that's kind of an interesting caveat there 17 so -- so we can keep an eye on that. 18 MR. HARANO: So, Bill, on the HGEA part, you 19 said there is going to be five different arbitrations, 20 right? 21 MR. BRILHANTE: Correct. 22 MR. HARANO: So, let's say one votes “no” -- 23 then what? 24 MR. BRILHANTE: Just that one would get back. 25 The units are treated independently, although they're ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 33 1 represented by HGEA, they're identified through each 2 unit. So, Unit 2 is separate from 3, you know, from a 3 legal standpoint. 4 MR. FRATINARDO: Does the council vote on that 5 matter individually? 6 MR. BRILHANTE: Correct. Unless there is an 7 agreement to draw them in collectively which, in the 8 past, that's generally been that process. 9 MR. FRATINARDO: As a whole. 10 MR. BRILHANTE: As whole, yeah. 11 MR. HARANO: This is an expense to the budget, 12 the arbitration process? 13 MR. BRILHANTE: Well, our department is 14 responsible for identifying the expenses associated 15 with the bargaining unit on an annual base, so that 16 comes out of HR budget. And we anticipate and 17 we, kind of, know what's coming down the pipe, and 18 we account for it. 19 MS. GREENBAUM: So, Bill, with that being said, 20 since in the past it was just one arbitration, now 21 there's five. So, are we taking that one and splitting 22 it up five ways or are we increasing the budget so 23 that, you know -- five different arbitrations? 24 MR. BRILHANTE: Yeah, you know, in the past, 25 generally, there's no way for us to determine if this ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 34 1 unit would settle or that unit won't settle, this unit 2 is going to arbitration, that unit isn't. So, we have 3 a general estimation. 4 MS. GREENBAUM: Correct. 5 MR. BRILHANTE: Then we identify -- okay, this 6 is what we reasonably anticipate, so we set a figure 7 associated with that. We know as an employers' group 8 that there's always the elective that the union can go 9 individually. 10 MS. GREENBAUM: Okay. 11 MR. BRILHANTE: Our hope is that units so 12 similarly situated -- like Unit 3 and Unit 4 -- there 13 will be some units that will go forward. There will be 14 some consideration to combine some units like that. 15 But we -- there's always -- since there is always that 16 possibility, we anticipate it, and we -- 17 MS. GREENBAUM: Allow for it. 18 MR. BRILHANTE: Yeah. So, it's not going to 19 bankrupt us or anything. I guess one of the benefits, 20 too, of the employers' caucus being together is as the 21 arbitration goes forward, we split the cost associated 22 with arbitration five ways. And it's five equal 23 shares -- so the State is one, County of Maui, County of 24 Kaua ʻ i, City and County of Honolulu and ourselves make 25 it up. So, we have a five-way division, and we have an ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 35 1 agreement that everybody will pay their equal share, 2 and we just go forward from there. So, it's less of a 3 hit to the employers' group because the union covers 4 the cost on the other side. 5 MR. PAVAO: What's the typical fee of the 6 arbitrator? 7 MR. BRILHANTE: You know, the arbitrator's fee 8 is set, you know, on an hourly basis for the amount of 9 time he's actually in hearing or reviewing documents. 10 MR. PAVAO: Hourly? 11 MR. BRILHANTE: Yeah. But, generally, I'm 12 going to say -- generally, I've seen some -- I'll 13 tell you this, I seen a receipt for one of our expert 14 witnesses which was close to about $86,000, you know, 15 that was our financial expert. 16 MR. PAVAO: Where do you apply to be an 17 arbitrator? 18 MR. BRILHANTE: You can sign up to be an 19 arbitrator. That's not a problem, though. I've heard 20 your comments -- I would, definitely, select you. But 21 any other questions regarding collective bargaining? 22 Okay, great. 23 Let's turn everybody to the next subject is the 24 private industry salary (SEE ATT. B). There's a tab 25 in your binders which is called private industry salary ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 36 1 information -- coincidently, you know. We'll go to 2 that tab. And I know some of you were here previously 3 -- like Mr. Higgins. We have him -- his chair 4 cast in stone, he's been with us for so long. 5 MR. HIGGINS: Thanks, Bill. 6 MR. BRILHANTE: We have to nudge him every 7 time when it's time to go home. He loves it so much. 8 But, anyway, as it relates -- going back to 9 this document. If you recall back in 2017, my staff, 10 Jenny and Michele provided you with information from 11 the Hawai ʻ i Employers Council evaluation. 12 And, in 2017, those were the equivalent -- we 13 identified the equivalent private sector wages, you 14 know, salaries. The problem with that is we have to 15 have some imagination because, you know, private 16 sector and government sector are so significantly 17 different. So, what we did was we identified positions 18 and employment information, which was as close as 19 possible, you know, as close as possible aligned to 20 the counties, private or governmental salaries and 21 positions. And what we did was we updated that 22 2017 evaluation with the 2018 evaluation. So, the 23 information is the same, the numbers have changed a 24 little bit. And, if you can go through it, we provided 25 that for you to go through and kind of, you know, look ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 37 1 at it. Again, this is just information for you to 2 consider because, as you know, the charter requires 3 you -- you're tasked as the Commission to set the 4 salaries for department heads, deputies, elected 5 officials, which are -- the term would be equivalent 6 to other jurisdiction salaries -- 7 MR. DOW: Reasonable relationship. 8 MR. BRILHANTE: -- as well as -- yeah, other 9 jurisdiction, government salaries, as well as private 10 sector salaries. 11 MR. FRATINARDO: Could we also use the word a 12 parity -- get them a parity? 13 MR. BRILHANTE: That's fine. 14 And so -- provide this to you. 15 MR. HIGGINS: Could you, Bill, how about 16 taking one of the pages, and go through it, trying to 17 compare it to where we might easily use it. So, let's 18 say, top legal executive -- that pay. 19 MR. BRILHANTE: What page are you on? 20 MR. HIGGINS: Page 33. Okay. You used this. 21 Tell us how to use this page when we're talking about 22 our top legal executive. I guess, that would be the 23 mayor. 24 MR. BRILHANTE: No, for this it would be 25 Corporation Counsel. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 38 1 MR. HIGGINS: Okay. Let's go through one, and 2 tell me what the top Corp. Counsel guy gets or gal, as 3 compared to this. 4 MR. BRILHANTE: Currently, there are 5 Corporation Counsel at 150 -- 154 per year on the 6 salary. 7 CHAIR: 153,228. 8 MR. BRILHANTE: Okay. We'll round down to 9 153. 10 MR. HIGGINS: So, on that page, where does it 11 fit on that page? 12 MR. BRILHANTE: You look at all companies -- 13 first thing you look at is by employment. So, number of 14 employees less than -- 150 to 400 employees. That's 15 not -- easily compared. You look at -- you go to this 16 interquadral range. First you look at that average, 17 right. The average for the private sector would be 18 182,000 to 231,000. Here it says, number of companies 19 responded, number of employees, and then the next row 20 it says average. Right here, across the middle, if 21 you look at base pay. You see the section that says 22 base pay? 23 MR. HIGGINS: We're on -- yeah, I see base 24 pay. 25 MR. BRILHANTE: So, right below it says, all ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 39 1 companies -- 2 MR. HIGGINS: Yes. 3 MR. BRILHANTE: Okay. Just to the right of 4 that in the bold -- 5 MR. HIGGINS: Oh, oh, okay. 6 MR. BRILHANTE: -- it's number of COs of -- 7 that's the number of companies that responded, number 8 of EEs -- that's the number of employees in that 9 company. Then you look over here, the average, the 10 wages average – and, you know, you can go from there. 11 So, you look at the average is 219 or 182 or 231, and 12 you go across -- and then you look at the median, the 13 top -- the bottom 25 percent, the top 75 percent, and 14 the median, and then you can go from there. You look 15 at bonuses, that's something we can't consider, but 16 that's something that's offered in the private sector. 17 And then you look at total cash compensation, 18 that's generally the base pay and the bonus. And then 19 you get those numbers as well, the average 301; 20 weighted average 301; 25th percentile, 200; the 21 median 269; and the 75th percentile, 347. And they're, 22 similarly, like that for all the others going forward. 23 MR. HIGGINS: Good. Thanks. 24 MS. GREENBAUM: One more question. So, based 25 on all this configuration, the average salary for that ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 40 1 position should theoretically be in this range, the 2 average and minimum that you have below -- is that, 3 kind of, what the thought process is? 4 MR. BRILHANTE: Yeah, you know, you can look 5 at the public sector at the last line. You know, to 6 me, I don't want to opine on that. That's a decision 7 for you to make independently as a commissioner. How 8 -- there is no doubt -- we just roughly went through 9 the figures and there's no way anybody here in the 10 County, whether it be Corporation Counsel or 11 Prosecutor, is making anything close to what these 12 figures are showing. I mean, that's just the fact of 13 the matter. I'm not breaking anybody's hearts here. 14 That's just the facts of the matter. 15 So, when you come here, there has to be a 16 reasonableness associated with your decision. And 17 this is just one of the arrows that you're going to 18 use to formulate your financial decision as to what 19 you feel is the fair, equitable, and reasonable salary 20 that we should have for our department heads. 21 MR. FRATINARDO: I appreciate this. I really 22 appreciate this. 23 MR. HIGGINS: Yeah, excellent. 24 MR. BRILHANTE: And I have to thank my staff, 25 Jenny Sakamoto and Sheldon (sic.). They do great work. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 41 1 MR. PAVAO: Well, I appreciate it. I wish it 2 was more simple. I mean, seriously, you looking at 3 this -- it's really hard to make out -- 4 CHAIR: Just go to the bottom line on each 5 page -- they put base salary range. 6 MR. PAVAO: Yeah, yeah. Maybe that's what we 7 need then. You don't need all this garbage. 8 MR. HIGGINS: Milton, you're a smart guy. You 9 want to change your opinion on the arbitrator? 10 MR. HARANO: Can I add something on this 11 discussion right here on this -- the legend. If you 12 look at the salaries and where the salaries are coming 13 from, if you look at the companies, the legend in the 14 back, you will see most of these are Honolulu 15 companies, big companies. So, the average for them is 16 skewed, okay. That's just my opinion. 17 MS. GREENBAUM: And, if I can answer that, it 18 looks like the base range -- they have taken it from the 19 lower percentage rather than the high, that's why it 20 broken out in 25 and 75, so that it's more realistic. 21 Is that -- that's, kind of, how I read it. So -- 22 MR. BRILHANTE: The final information I want 23 to give you, although it's not specified, but it is 24 information I think that's pertinent is that updates 25 as to salaries for other county jurisdictions -- ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 42 1 Maui County, effective January 1st of this year, 2019. 2 Their salary commission authorized a three percent 3 raise for all their department heads, deputies, and 4 elected officials. Three percent raise. Maui, 5 similar to us, but does not require county council 6 approval. So, those three percent raises went into 7 effect January 1st, 2019. 8 City and County of Honolulu, likewise, their 9 salary commission approved three percent raises for 10 their department heads, deputies, and administration. 11 And, again, they were up three percent raise 12 across-the-board. With Honolulu, though, the process 13 is they need county council approval -- so, that is 14 going through their county council approval process 15 currently. And that's what the two other jurisdictions 16 is. 17 Kaua ʻ i is looking at -- they're addressing the 18 matter now -- similar to us, and they're conducting -- 19 the salary commission is conducting their studies and 20 they haven't come to any final decisions regarding 21 raises. 22 What appears to me the two jurisdictions that 23 have authorized raises, I think what they've done, 24 they've taken a position very similar to what the 25 collective bargaining contracts have taken, a two ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 43 1 percent raise, and some consideration for the 2 longevity, the step increase that the union members 3 are getting during the two-year contract -- and they've 4 broken that down to be about three percent. And, 5 again, that's just my opinion -- what the other two 6 jurisdiction did, okay. Thank you, that's all I have 7 for now. 8 CHAIR: Nelson (sic.), since you brought up the 9 other salary commissions, do you know if either Maui or 10 Honolulu, did they have to do any special things so 11 where we had -- in particular, group was making less 12 than members of that group? 13 MR. BRILHANTE: You're referencing any issues 14 involving inversion. I can't speak off-hand about 15 that, you know, directly, because I don't have any 16 specific knowledge. But I will say this, I would 17 assume that if they didn't have direct inversion, they 18 definitely had compression. And the reason I said 19 that -- I would say that is because in each of the 20 these jurisdictions similar to ours -- the last raises 21 were back in 2017. And, since that time, the 22 collective bargaining members have been getting across- 23 the-board -- consistent across-the-board raises, you 24 know, coming forward where my understanding is there's 25 been at least two or three, I think in one -- at least ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 44 1 two or three raises for the union members. And 2 pursuant to the HRS, it's not really the union members 3 that affect the inversion. It's when you get to that 4 mid-level managers. And, under the HRS, the mid-level 5 managers get automatic raises to be no less than their 6 collective bargaining counterparts. So, that's the 7 area where we see the compression or the inversion. 8 And when you look at the salaries of the mid-level 9 managers, so I would say for sure, you know, because 10 they've been getting annual across-the-board raises 11 just like their union counterparts. 12 MR. FRATINARDO: I have a question for you, 13 Bill, if you were to add up all the mid-level managers 14 in the County, would that outnumber the amount of 15 appointed and elected officials in the County? 16 MR. BRILHANTE: My understanding, there is 17 close to 40 appointed -- rough estimate of 40 18 appointed department heads, deputies, and the 19 administration staff that we set the salaries for. 20 And there is about, I want to say 70 or 80 mid-level 21 managers that we set a separate salary schedule for, 22 which is based on no less than what their union 23 counterparts get. 24 MR. FRATINARDO: Thank you. 25 CHAIR: So, did I hear you correctly to say ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 45 1 that Maui and Honolulu gave their top managers their 2 last raises in 2017. 3 MR. BRILHANTE: My understanding was either 4 the middle of 2016 or the beginning of 2017 they got 5 raises. 6 CHAIR: Unlike us, they didn't do anything for 7 last year, for 2018? 8 MR. BRILHANTE: Correct. They haven't done 9 any adjustment. There's been a two-year window. 10 CHAIR: For those two jurisdictions? 11 MR. BRILHANTE: Yeah, right. 12 I think Kaua ʻ i, they haven't given anything for 13 a very long time. 14 CHAIR: All right. Yeah. 15 MR. HIGGINS: Can I just ask if -- do I have 16 this right -- due to collective bargaining, if we did 17 not give pay raises to our 40 -- say over ten years, 18 five, ten years -- inversion would take place. It's 19 almost built in. It's built into the system. 20 MR. BRILHANTE: Oh, yeah -- and we saw that, 21 right, back in 2017. 22 MR. HIGGINS: Yeah, yeah. 23 MR. FRATINARDO: That's why I asked that 24 question. 25 MR. HIGGINS: Yeah, I guess now that I ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 46 1 understand that, if we were to believe the UH 2 economist, in that the economy is going to slow down, 3 and for some reason, we don't go along with giving pay 4 raises for the next few years, we're going to be 5 forced to give raises at some point in time because 6 we'll have an inversion problem. 7 MR. BRILHANTE: You know, quite honestly, I 8 received word from one of the department heads that 9 even though the salaries were reset in 2017 -- we gave 10 raises in 2017, 2018, they're back to being in a 11 situation where there may be inversion. 12 MR. HIGGINS: Yeah. So, we have to deal with 13 this. And this inversion thing is really built into 14 the system because if you look at our founding 15 documents of why the Salary Commission was created, 16 there is absolutely not one word mentioned of merit or 17 affordability. So, we're not dealing with – “Can we 18 afford it?” And we did not ask Deanna, “Can we afford 19 it?” The numbers show where they're going, but we're 20 not considering that because there's this push from 21 underneath from collective bargaining that basically 22 we have to go along with. Am I the only person that 23 thinks that? Am I nuts on that? I just keep seeing 24 this inversion thing has to happen if we do nothing. 25 MR. FRATINARDO: Well, I asked the question a ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 47 1 year-and-a-half ago when the mayor was sitting here 2 about Civil Service Reform. I asked, how do we 3 achieve balance in this whole pay scheme? He came out 4 and said, “Civil Service Reform.” But how do we get to 5 that, but that's beyond our -- 6 MR. HIGGINS: Yeah, I know that. What about 7 affordability, when do you think that our neighbors 8 can't afford more pay raises. I don't know what the 9 answer is, but I'm dealing with my neighbors. You 10 read in the paper what's going on. Well, there was 11 thirty percent pay raise. How can you even be 12 considering another pay raise. Well, I don't want to 13 go through the whole song and dance, and I've tried. 14 And the inversion -- we didn't do anything for ten 15 years. But the fact remains that the percentage of 16 wages, salaries, and benefits has gone from 50 to 63 17 percent. That's during a time when the amount of 18 people working has stayed the same. That means only 19 one thing, you getting the push on increases in 20 salary. So, what do we do about it? I don't know, 21 frankly. 22 MR. FRATINARDO: Bill, what is the amount of 23 -- generally, a ballpark figure, the amount of 24 employees that are employed by the County of Hawai ʻ i? 25 MR. BRILHANTE: About 2,700, give or take. You ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 48 1 know, one thing I want to say, which was somewhat is 2 an educational process for me -- was sitting on the 3 arbitration panel because it was an arbitration 4 hearing for fire. It went on for twelve days and it 5 was quite involved. 6 But one of my biggest take aways was when we 7 had -- when we had the testimony from our expert, you 8 know, that I alluded to earlier regarding comparative 9 salaries in other jurisdictions. And, you know, the 10 State Leg. and the HRS has set up seven criteria that 11 an arbitrator needs to look at when they're involved 12 in collective bargaining arbitration. And one of the 13 seven criteria’s you look at comparative wages in other 14 jurisdictions. So, reams and reams and reams of 15 documents, information comparing Hawai ʻ i firefighters 16 to that of San Diego, Los Angeles, San Francisco, 17 Portland, Seattle, Las Vegas, and Reno. You look at 18 all those, quote, unquote, "comparative jurisdictions" 19 because they're the West Coast, and a lot of the 20 cities the population size is similar to that of 21 Honolulu. And Honolulu makes up eighty percent of the 22 firefighters, they have the majority. 23 You look at comparative wages -- I'll tell you 24 this, it's real telling on me that when an arbitrator 25 is sitting there and he's looking at this, and he sees ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 49 1 the significant disparity between the two, and I'm not 2 saying it's right or wrong, but that's goes a long way 3 and you look and there's a $20,000 difference. And 4 the Hawai ʻ i guys are underpaid. Their salaries are 5 about $20,000 less than the mainland jurisdictions. 6 And then, the very next information they have 7 to look at is cost of living. And Hawai ʻ i blows 8 everybody away, except maybe San Francisco, you know, 9 with that. And it's like, here's Hawai ʻ i's cost of 10 living and here's everybody else, and then here's 11 Hawai ʻ i's salary and here's everybody else. So that 12 correlation between the two, I think that's why we see 13 -- that's why we see the arbitrators historically 14 giving some kind of raises. 15 MR. FRATINARDO: Well, I was an officer at the 16 time back in the '90s when all of these mainland 17 jurisdictions were coming to our islands and 18 recruiting officers knowing that they were underpaid, 19 knowing the cost of living. And a lot of officers, 20 especially from Hawai ʻ i County, went to the mainland 21 jurisdictions. 22 MR. BRILHANTE: And it's still going on today. 23 Coincidently, I was sitting there, and the arbitrator 24 was from Seattle, coincidently, I was sitting in the 25 arbitration next to the arbitrator and the arbitrator ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 50 1 was from Seattle, and just so happened I had the 2 Honolulu Advertiser. So, I opened it up and I was 3 doing the sport section, the end of the sports 4 section because that's all I read, right. I happened 5 to flip to the classified ads and, right there, there 6 was a big ad in the classified ad section for the 7 Seattle police department recruiting police officers 8 in Hawai ʻ i with five to seven years’ experience. 9 So, I turned to the arbitrator and said, “That's 10 how come we can't keep any of our guys.” But, you're 11 right, that's the fact of the matter. Please, we 12 don't see that type of transfer, transition in fire, 13 we have hundred percent retention in fire. But 14 through retirement or something like that, but I see 15 it in police. 16 MR. FRATINARDO: And I think that we don't 17 talk about much is on the Salary Commission -- the 18 Salary Commission, by awarding these salaries, each 19 new administration, that gives that chief executive 20 officer flexibility in hiring the right qualified 21 people for those positions that we're giving. So, I 22 don't know that we consider that also. You know, I 23 mean it's a political -- I mean, we're trying to stay 24 apolitical. 25 But, still, the mayor has this mission where he ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 51 1 has to put in the most qualified people that he can 2 into those positions, and reward them with a salary -- 3 but it's the position that we're, actually, funding -- 4 not the person. But the mayor, of course, is going to 5 look for the most qualified person. 6 MS. GREENBAUM: I have a question, and I'm not 7 sure if anybody can answer this for me. What is the 8 stream of income that we get from the State as a whole 9 to contribute to our budget. Maybe that's the 10 problem, maybe we are not getting adequately funded. 11 'Cause we're not just funded just by the County funds, 12 I can't imagine. I know in the tourist industry 13 Hawai ʻ i County gets the least. 14 CHAIR: Property taxes are our main source of 15 income. 16 MS. GREENBAUM: And so, the State of Hawai ʻ i as 17 a whole contributes nothing to our County? 18 MR. BRILHANTE: Through the Transit 19 Accommodation Tax, we get 19 million from the State. 20 The thought process behind that, is that -- that is to 21 offset that additional expenses that the County has 22 that relates to visitors, like additional fire, 23 police, roads, you know, things of that nature. 24 Now, we've been given the authority to 25 increase the GET tax up to a percent, or was it a ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 52 1 half-percent. 2 MS. GREENBAUM: Quarter percent, actually. 3 MR. BRILHANTE: But the county council just 4 authorized a quarter of the half-percent. 5 MS. GREENBAUM: Okay. 6 MR. BRILHANTE: And that's where they're 7 having the second reading, final reading for next week 8 is to authorize that second quarter, which would take 9 us up to half-percent. So, basically, for all intents 10 and purposes, that's the amount of money we get from 11 the State. 12 CHAIR: Because our property tax doesn't go to 13 the State, it stays here. 14 MS. GREENBAUM: Right, but the GE and the 15 transit -- and I apologize, I do need to brush up. I 16 came into this while I was really busy. So, basically, 17 our property taxes stay here. And GE and TAT goes 18 into a general fund and then the State distributes it 19 to the counties? 20 MR. BRILHANTE: The distribution is per the 21 legislative authority. So, the state legislators set 22 the amount of distribution and that's an automatic 23 distribution to the counties. That's set by 24 legislation. 25 MS. GREENBAUM: There's no way to revisit that ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 53 1 then or have it reproposed then? 2 MR. BRILHANTE: It has to be through our 3 legislators. 4 MS. GREENBAUM: Because that seems to be the 5 problem, it seems that we don't have enough stream of 6 income. 7 MR. BRILHANTE: And we can address that. 8 CHAIR: We're way off the subject where we are 9 -- 10 MS. GREENBAUM: And I apologize -- sure. 11 CHAIR: Some would like to take a break. So, 12 if we can take a five-minute break, and then we can 13 pick up the next item on the agenda. 14 (Recess.) 15 The next item on the agenda -- 16 MR. HIGGINS: Are we done, pardon me, with 17 what we've just covered? Is there still room -- 18 CHAIR: Do you have something else to say? 19 MR. HIGGINS: Yeah. 20 CHAIR: Okay. 21 MR. HIGGINS: What I want to say is a little 22 push back to what we just heard -- is the cities that 23 were mentioned that are paying so much more than what 24 we're paying, are not any place that you want to live 25 right now. Most of them are broke and going broker. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 54 1 And due to the same reason, is promises made to 2 government employees for their current pay and their 3 future benefits. 4 So, it's a common factor that states and 5 municipalities all across our great nation are going 6 broke. So, I submit that any time you read anything 7 that is done by any independent study group on the 8 finances of the 50 states, you will find that in just 9 about every category, the State of Hawai ʻ i is either the 10 worst or in the top or five of being the worst. 11 The truth in accounting group has named State 12 of Hawai ʻ i as a sink hole state. Now, I'm not really 13 too happy and proud to hear that, even though somebody 14 may move to Seattle and get paid more. We are a sink 15 hole state along with California, Illinois, and 16 New York. And that's rated on our finances. 17 So, that's all I'm saying. I keep trying to 18 pound that in. It is -- I understand if my neighbor is 19 working for the county government -- God bless him. I 20 want him to make as much or her as much money as 21 possible. 22 But what I'm saying, as a whole, we're on the 23 brink as a sink hole state of how far do we want to 24 keep pushing it. And this group here is playing a 25 huge role in that because the salaries, wages, and ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 55 1 benefits are a huge percentage of our budget, and 2 we're at the top of the end of that. So, we play a 3 bigger role I think than what we originally imagined. 4 And so, that's my point, it's a little push 5 back in that we better keep track of this 6 affordability because if you're -- if other states 7 are on the brink of driving over a cliff, do we want 8 to be a part of that or are we going to say, no, 9 we're not going to keep kicking the can down the road 10 and going along with that. 11 So, that's my point. That's all. Now, the 12 collective bargaining that goes on between the 13 governor and the unions that back him, we have no say 14 in that. And that is the push that's going on that 15 we're dealing with. So, when Chairman -- Ex-chairman 16 Ono at our last meeting in front of us, and is on the 17 record of saying -- perhaps, we don't need a Salary 18 Commission. I think he had some good reasons for 19 saying that. 20 And it was kind of off the wall, but if you 21 think about it, maybe there is no reason for this 22 Salary Commission. And that's all I have to say. 23 Sorry. 24 CHAIR: Okay. Any other questions on that 25 subject? ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 56 1 Thanks, Jim. 2 Let's move on then to item 2, which is Rules 3 of the Salary Commission. And what we're -- what we 4 need to do now is if we had any modifications or 5 discussion at the hearing, we would be discussing 6 those now as far as our rules. Since we didn't hear 7 any, I would accept a motion to approve the rules as 8 presented at the hearing and in your packet. 9 MR. PAVAO: So moved. 10 MR. FRATINARDO: Second. 11 CHAIR: Okay. So district 4 and Waimea. 12 MR. FRATINARDO: I'm District 1. 13 CHAIR: 1, that's what you are, huh? 14 MR. FRATINARDO: North Hilo. 15 CHAIR: Okay. I should get that right 16 someday, huh. 17 MR. FRATINARDO: You're fine. 18 CHAIR: All right. So, you need more 19 discussion on the rules? All right. If not, all in 20 favor -- do we need a roll call vote for those rules? 21 MS. YAMADA: You want a roll call? Okay. 22 CHAIR: All in favor? 23 (All members responded affirmatively.) 24 All opposed? 25 CHAIR: Carried unanimously. So -- yay, after ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 57 1 eighteen years, the committee has up-to-date rules. 2 Amy, thank you very much for holding on to the 3 last minute before you retire. 4 MR. BRILHANTE: She said that's the one last 5 thing she wanted to accomplish before she retired, 6 with peace of mind. 7 MR. PAVAO: Maybe we can put you on retainer. 8 MS. SELF: No, no, no. 9 MR. HIGGINS: No, no, we heard that. 10 CHAIR: All right. The other part of this 11 process is the way it works, is it goes off to Council 12 to look at -- and then somehow gets to the mayor's 13 office, not council -- 14 MR. BRILHANTE: To the county clerk. 15 CHAIR: County clerk, pardon me, I misspoke, 16 county clerk -- and then, the mayor's office. And then 17 ten days after that, which would put our rules into 18 effect, so which would go into effect in the middle of 19 March sometime, or we can set the date of April 1st, 20 and just make it effective. Everything will be done 21 by then, as the process goes. So, what's your -- any 22 comments, any thoughts one way or the other? 23 MR. FRATINARDO: No. 24 MR. PAVAO: Just takes it as it comes, 25 whenever it occurs, it occurs. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 58 1 MS. SELF: Yeah. It would go into effect ten 2 days after it's filed with the clerk's office. 3 CHAIR: We can adjust that. 4 So, it's been suggested to us that to make the 5 process smooth that we set the effective date as April 6 1st. And so, I would need a motion to that effect -- 7 if you will agree with that. 8 MR. FRATINARDO: So moved. 9 CHAIR: There's a second? 10 MS. GREENBAUM: Second. 11 CHAIR: Second by Judy, motion by Tom. Any 12 other discussion? All in favor. 13 (All members responded affirmatively.) 14 Oppose? The same. 15 Okay. 16 So, we're at the next point for our agenda as 17 to what date we might have for the next agenda -- for 18 our next meeting. 19 MR. BRILHANTE: Chair, if you don't mind -- 20 CHAIR: Yeah. 21 MR. BRILHANTE: It was brought to my 22 attention, although you discussed the possibility of 23 implementing the commission plan as regards to 24 inviting department heads. I believe it was the 25 finance director, the administration, county council, ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 59 1 there wasn't any affirmative motion taken by the 2 council(sic.) to do that formally. So, I think this 3 would be time as you set the agenda that you might 4 want to have a discussion considering that. 5 CHAIR: Well, let's debate that. We just 6 approved rules. The rules say we have a plan that 7 we're following. We have an approved plan. So, why 8 would I need to do what you just said? 9 MR. BRILHANTE: Because we would have to send 10 out the invite to those departments that we'd like to 11 see at the next meeting, and check on their 12 availability. 13 CHAIR: Yeah. So, that would be a part of what 14 we want to put on the next agenda, correct? 15 MR. BRILHANTE: Yeah. 16 CHAIR: Okay. I understand. 17 MR. HIGGINS: Good catch. 18 CHAIR: One of the items for the next agenda 19 would then be that -- for the next plan, we would see 20 if we can invite -- at the next meeting we can invite 21 police, fire, and liquor to come and talk to us about 22 the people or the positions that they oversee that we 23 might approve raises for. We heard from all those 24 groups before, but it would nice if we could get them 25 to come or send us a letter again. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 60 1 So, is that something that you all are okay 2 with. We need to vote on that, or it just needs to be 3 added to the agenda? 4 MR. BRILHANTE: Would it be the commission to 5 send a representative from their respective commission 6 to give a report? 7 CHAIR: Yeah, thank you. 8 Here's what I would suggest, and Tom makes a 9 point, if some -- one of those groups can't send a 10 representative, then can we authorize Glynis to see if 11 she could pick one or two of the other groups up, so 12 we can have at least three coming to talk to us next 13 time? 14 MR. HARANO: We would need to know ahead of 15 time too, right? 16 CHAIR: Yeah. So that brings up -- let me 17 skip ahead for a second. We are going to talk about 18 more things to add to the agenda -- so that brings up 19 when should we have our next meeting. 20 MR. BRILHANTE: And I think there should be, 21 in that regards, again, this is just my opinion, we 22 should give some thought to the fact that just because 23 we sent out a request, you know, the commissions that 24 we're sending to, they're going to have authorized 25 through a process an individual that would come and ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 61 1 speak on their behalf. So, that's probably something 2 they'll take up at their next meeting whenever their 3 next meeting is, so then we should give adequate time 4 for that process to take place. 5 CHAIR: So, with that in mind, I'm suggesting 6 our next meeting be in May. 7 MR. HARANO: It gives adequate time. 8 CHAIR: Dates that are open, while Tom sees if 9 he can be here, is -- like the 16th of May is open 10 right now. 11 MR. PAVAO: Mr. Chairman, while we're at it, I 12 just want to make a comment about what we should place 13 on the next agenda. 14 CHAIR: Yes, please. 15 MR. PAVAO: You know, I've been hearing 16 Seattle comes and recruits, and they get higher pay 17 and this and that. And that's all fine and dandy, and 18 it does happen. But I think what this commission 19 needs to discuss is our ability to pay. To me, that's 20 really important, our ability to pay. And I think I 21 mentioned this previous meetings ago, yeah, it's nice 22 to give raises, but can we afford it. 23 Look at our -- I had the discussion with Amy 24 -- our land taxes is so damned low compared to 25 everybody else, all our taxes are low. Can we pay -- ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 62 1 do we have the ability to pay? I think we need a 2 discussion on that. 3 CHAIR: Okay. You can add that to the 4 agenda. So, does the May 16th work for you all? 5 MR. HIGGINS: Good for you? 6 MR. FRATINARDO: Yes. 7 MR. HIGGINS: May 16th. 8 CHAIR: All right. May 16th is the next 9 meeting. Other items to add to the agenda are 10 Mr. Higgins' comments about whether we should -- we 11 need to have a discussion as a group whether this 12 commission should exist or not. 13 MR. PAVAO: Oh, I don't think he was inferring 14 that, huh? 15 MR. HIGGINS: I wasn't inferring that. I was 16 just posing it for thought, that's all. If somebody 17 wants to take that up -- 18 MS. SELF: Keep in mind that this commission 19 was created by a charter, so it was -- it went through 20 an election process. 21 MR. PAVAO: How else -- how else we going have 22 donuts? 23 MR. FRATINARDO: It went through the charter 24 process several times. 25 MR. HIGGINS: Well, if it was determined that ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 63 1 we wanted to discuss that, I would suggest inviting 2 Hugh Ono back. He's the one that triggered my thought 3 process because he made a statement -- you weren't 4 here, Bill, but he made an opening statement about 5 whether we should exist or not. So, if you want to 6 pursue it, I'd say, lead off by having him come in and 7 explain why. 8 MS. SELF: Again, this body was created by the 9 charter. So, in order to terminate it, it's either 10 going to have to be by an amendment, charter amendment 11 proposed by the county council and passed, or by the 12 charter commission. That's the only way you can get 13 it. Then it has to go to the ballot, so the people 14 have to decide whether or not to terminate it. 15 CHAIR: And Mr. Ono was -- what he suggested 16 was he could come and help write something, and send 17 it to the charter commission. Okay. So, let's not put 18 that on there. 19 MR. HIGGINS: No, I'm not -- 20 CHAIR: For now, you got your point out. 21 MR. HIGGINS: Yeah. 22 CHAIR: And it is something for us to 23 consider. 24 Let's see, Dr. Dow, you had a -- 25 MR. DOW: Yes, I think we need to discuss ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 64 1 whether we are willing to accept pay inversions, 2 because what I have in front of me here is information 3 that indicates that as of June 30th of this year, 4 we'll have salary inversions in four departments, 5 environmental management, parks, and public works, and 6 fire. 7 CHAIR: Yeah, let's put that on the agenda. 8 Others? 9 MS. SELF: For the -- 10 MS. GREENBAUM: I do have a question, again, I 11 apologize -- I'm not up to speed, but is there -- is 12 this a place to discuss how to bring in more revenue 13 to the State of Hawai ʻ i or -- or where would we go with 14 that? I know we're just the Salary Commission, but -- 15 MS. SELF: That's really beyond the authority 16 of this Commission. 17 MR. FRATINARDO: I just want to say something. 18 CHAIR: Before you do that, I just want to say 19 -- so our next meeting would be May the 16th at 20 10:00 a.m. here in Hilo Council Chambers. 21 Tom? 22 MR. FRATINARDO: No. 23 CHAIR: Anybody else? 24 MR. HARANO: We should, George, when we meet 25 in May, I don't think Amy is going to be around, I ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 65 1 think we should -- you know -- 2 CHAIR: She just wanders around. 3 MR. HARANO: Oh, yeah, yeah, yeah, she'll have 4 all the time to wander around pretty soon. 5 CHAIR: Amy, we want to be on the record 6 saying we really appreciate all the work that you've 7 done for us as a commission. Certainly, the rewrite 8 of our rules was sadly -- they really needed to be 9 done, you did a great job. But, just in general, you 10 keep us on track at every meeting, and we're really 11 going to miss you being here. We're glad that you're 12 going to get to be retired because that's an enjoyable 13 time of life. Thanks so much for being a part of this 14 group and supporting us. 15 MS. SELF: Thank you. I really enjoyed being 16 with you guys and I'll miss you very much. 17 MR. PAVAO: We'll miss you. 18 MR. HIGGINS: Who's your replacement? 19 MS. SELF: I don't know, yet. 20 MR. HIGGINS: Got to be as good and pretty as 21 you. 22 MR. PAVAO: Not necessarily as good, but 23 pretty. 24 MR. HIGGINS: Or prettier. 25 MR. PAVAO: Pretty, yeah. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 66 1 CHAIR: These guys are going to be -- 2 MR. PAVAO: We good pose, no spikes in the 3 pose. 4 MS. SELF: Not anymore, spikes gone. 5 CHAIR: Any other items? If not, this meeting 6 is adjourned. 7 (The meeting is adjourned at 12:09 p.m.) 8 --oOo-- 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 1 STATE OF HAWAII 2 SS. 3 COUNTY OF HAWAII 4 5 I, MERCEDES SHARON SOUZA, a certified court 6 reporter in the State of Hawaii, do hereby certify 7 that the foregoing pages are a true and correct 8 transcription of the proceedings in the above matter. 9 10 Dated this 21st day of March, 2019. 11 12 13 14 15 16 184 17 18 19 20 21 2 2 23 24 2 5 ISLAND COURT REPORTING & TRANSCRIPTION SERVICES ( 8 0 8 ) 9 3 3 - 9 8 0 0 Ms. Mercedes Sharon Souza, Certified Court Reporter, transcribed the aforementioned proceedings of the Salary Commission at its public hearing and meeting held on March 7, 2019. Glynis Yamada, Secretary, Salary Commission, had incorporated some minor formatting/housekeeping revisions throughout the transcript. Respectfully Submitted, d OtifruL,' Glynis Yamada, Secretary APPROVED: e4c-OL>George W. Campbell, Chair Salary Commission PUBLIC STATEMENT REGISTRATION FORM SALARY COMMISSION COUNTY OF HAWAII HILO,HAWAII Date: 7‘• eS/0 112 a 1 q (Please print clearly) Support Oppose Comment Please list the item(s)you will be speaking on: Communication No. if . A OR Subject/Topic: a J p Set lA>� �'.m rn, �ss � „ r ,)s)�7 Name: Itbol kassevo Ahra' °' Sasci!pi .! Ion, r Representing: 74,e 217), %/ e►-s• / 'R a /,,n e / 1+ -q-4{4(,..44) / P `,»�' J''i (Please indicate whether Self or Organization) ***For official use only: Speaker No. PLAN: PROPOSED SALARY ADJUSTMENTS EFFECTIVE JULY 1, 2019 OBJECTIVE: To secure the best available information toward considering and deciding on the next possible future Salary adjustment, which could become effective on July 1, 2019? FUTURE SALARY ADJUSTMENTS: Could be increases, decreases or no change. PROPOSED PLAN: 1. Invite and consult with Finance Director in March 2019, Administration, County Council, and Commissions to present and discuss these future pay adjustments. 2. Use the input and available information to review the proposal prepared by the Department of Human Resources to evaluated pay adjustments. 3. Adopt Action Plan to be completed no later than January 1, 2020. PRESENTATION INCLUDES: (20 Minutes) 1. For each Department or Major Unit: a. Primary Duties and Responsibilities. b. Size of Staff and Organization c. Operating Budget and Funding d. Major Challenges e. Overtime Requirements f. Pre-requisite requirement for those positions. 2. Salary Considerations: a. Factors the Salary Commission should consider b. Any recommendation? c. Merit considered? d. Productivity—Goals and Objectives e. Ability of the Department to Pay? 3. Private Sector Analysis PROPOSED SCHEDULE: • Police, Fire, Liquor • Merit Appeals Board, Prosecuting Attorney, County Council • Mayor's Office on: Finance, Planning, Research & Development, Information Technology • Mayor's Office on: Housing, Public Works, Environmental Management, Managing Director, Deputy Managing Director, Corporation Counsel • Decision Making • Dates to be determined at a future Salary Commission meeting. ATT. A Amended: January 24, 2019 Harry Kim :�N<v,aF N''w•. William V. Brilhante,Jr. �q• 4 9�•"••, Director of Human Resources Mayor HUMAN RESOURCES aid<,,• • FEB 2 B 2019 RECEIVED te: _ County of Hawaii Department of Human Resources Aupuni Center*101 Pauahi Street,Suite 2.Hila,Hawaii 96720* (808)961-8361 *Fax(808) 961-8617 website:http://hawaiicounty.gov/human-resources e-mail:jobs@hawaiicounty.gov TO: George W. Campbell, Chair and Salary Commission Members FROM: William Brilhante, Jr., Director of Human Resource DATE: February 28, 2019 RE: Private Industry Salary Information Per your request for information on private industry salary data, attached are portions of the Hawaii Employer's Council 2018 Professional, Administrative, and Management Salary Survey that we participated in last year. A total of 170 private companies and government agencies in Hawaii participated in the survey. We've selected the following groups that are comparable to some of our executive appointed positions under your review. HEC Salary Survey Title County of Hawai'i Title Chief Financial Officer Finance Director Top Legal Executive Corporation Counsel Chief Human Resources Officer Director of Human Resources We are also including other HEC Survey data that would be helpful in evaluating pay for other County of Hawai'i executive positions that are similar to the HEC descriptions, but do not necessarily incorporate the entire scope of work of our positions. HEC Salary Survey Title County of Hawai'i Comparable Title Top Construction Executive Director of Public Works Engineering Director Director of Public Works; Director of Environmental Management Chief Executive Officer Mayor Chief Operating Officer Managing Director ATT. B Hawaii County is an Equal Opportunity Provider and Employer. The data provided in the survey is reported in a number of ways including by number of employees, by revenues/operating budget (for entire company) and by industry. 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C S ,J C CC > Y .`"'S C C) > r" C N N N O 00 ' 1M N G x L > C) ' Y7 77) C V ,Q C, SC' 00 C. 00 .0 x CM C O N C' 7 Q / 00 C V t = ,,, . V M CM M,, � N G J_ L = Y Y G E — N — _ N N — - - N x V1 M n C 69 'A 6A S4 EA EA EA 6A EA 60 0 6S 69 C x ID L V 7 7 - En v; M V I. — L = CM N V v0 N N M 00 C Q — Q N CM — N M 7 CM PA N •� G O i/, CM M x CM o d G CM — N. C" YCC — N — — CV _ ^. .J C 69 {' EA EA hA 6A 6A Vi EA b9 EA 'f'i -0 n LV' C V . 7. e. CO ) C +.. C .0 — . 0) G A. E � C ^ .. G — N x N y. N 6 v9 EA S9 EA 69 EA E. - = 1 J V 7 M M M .. f` M :. C ^ Z cc = N _0 0 - C, - M E LJ., J 'V) - C x CM - M, M u CM C CJ •, CM rn C, V; N v) N N 1M 'C /) 5 6° f 69 EA 'F. EA 69 S9 EA EA EA EA EA C LJ Z iC O .) V 7 M v) M O C _ 'C v, CM -- V ',JJ, U bL -.0 • ,C N 00 C - — ^ "• .CC , C L L x C M U l` M L _ CJ M — 00 fn N CM — N ^ ^ M, V) 7 CC V N N N N `:. L O N Q EA 6A 69 69 f 6A EA S9 .9 69 EA 69 cA i 0r. •C U •7 G c3 C — Q C • 7 r 7 — N C' .0 — CC V. ,J Z N N — _ — — N N — "" J R ' .. 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