HomeMy WebLinkAbout2019-08-15 Salary Commission Minutes
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TRANSCRIPT OF PROCEEDINGS
SALARY COMMISSION MEETING
Held at the Hawai ʻ i County Building, 25 Aupuni Street,
Hilo, Hawai ʻ i, 96720, commencing at 10:02 a.m., on
August 15, 2019.
REPORTED BY: TERI HOSKINS, CSR #452
Registered Merit Reporter
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APPEARANCES
2
CHAIR:
3
GEORGE W. CAMPBELL
4
5
BOARD MEMBERS:
6
THOMAS E. FRATINARDO
7
FLORENCE K. IKEDA
8
JAMES W. HIGGINS
9
JUDY A. GREENBAUM
10
NELSON H. HARANO
11
BENSON MEDINA
12 WILLIAM V. BRILHANTE, JR., EX-OFFICIO
13
ABSENT AND EXCUSED:
14
MILTON PAVAO, P. E.
15
16
17
18 ALSO PRESENT:
19 DANNY PATEL, DEPUTY CORPORATION COUNSEL
20 GLYNIS YAMADA, COMMISSION SECRETARY
21 JENNIFER SAKAMOTO, HR
22 MICHELE LAMKIN, HR
23 NANCY COOK-LAUER
24
25
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CHAIR: Let's go ahead and call the meeting
2
to order. I call the meeting to order, please.
3
And I don't see any general public. Anybody
4
have any comments?
5
All right. First thing I would like to do,
6
then, is say hello to everybody.
7
MS. GREENBAUM: Hello.
8
MR. FRATINARDO: Aloha.
9
MR. MEDINA: Aloha.
10
CHAIR: I got a note from Milton saying he
11
wouldn't be able to attend today, so he won't be with
12
us.
13
After that, first thing is I would like to
14
seek approval and/or comments on the minutes of May
15
16th; and if there are no comments, I would accept a
16
motion to approve them.
17
MR. FRATINARDO: I make a motion to approve.
18
MR. MEDINA: I second.
19
CHAIR: Motion is made and seconded to
20
approve the May 16th minutes.
21
Any other discussion?
22
In favor?
23
(All members responded affirmatively.)
24
CHAIR: Okay. Same thing for the June 27
25
minutes.
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MS. IKEDA: Move to accept.
2
MR. FRATINARDO: I make a motion to approve.
3
CHAIR: Okay.
4
MS. GREENBAUM: Second.
5
CHAIR: Okay. Motion to approve and second
6
for the June 27th minutes.
7
Any other discussion? All in favor?
8
(All members responded affirmatively.)
9
CHAIR: Stand approved.
10
We had no communications or new business, so
11
we're moving all the way down to item VI already.
12
And the first item on that agenda is to -- on
13
the unfinished business is 1.A., the salary plan. Last
14
time, we talked about not needing to make any changes
15
or adjustments to that salary plan, the one we've been
16
working off of (SEE ATT. A).
17
Any other thoughts on that, or are you okay
18
just to leave it as it is and move on? All right.
19
Silence to me says no comments, so we'll move on to
20
item 1.B. -- update by Bill Brilhante, concerning
21
collective bargaining agreements.
22
You're on, Bill.
23
MR. BRILHANTE: Good morning, Chair, and
24
fellow Commissioners. William Brilhante, Director,
25
Department of Human Resources.
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I've been requested to provide an update
2
regarding the various collective bargaining agreements
3
within the County of Hawai ʻ i. As you may or may not
4
know, we deal with four primary entities that represent
5
all of the County employees. First is HFFA or Fire.
6
Second is SHOPO -- they represent police. Third is UPW
7
Public Workers -- they represent the majority of our
8
blue collar workers. And then, finally, HGEA, who are
9
white collar and administrators, and the like, and
10
clerical staff.
11
We are currently under contract with UPW for
12
an additional two years, SHOPO for an additional two
13
years -- and the county council and the State just
14
ratified the contract for Fire, so it's a two-year
15
duration.
16
What seems to be across-the-board with each
17
of those three units, the benefit increases. All three
18
of the units have received pay increases. The general
19
estimated value of each of the increases comes out to
20
about 6.1 percent annually across-the-board. That's
21
inclusive of across-the-board pay raises for each of
22
the employees as well as step increases or, in some
23
instances, bonuses and the like, which were
24
specifically identified in the collective bargaining
25
agreement.
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The only units that we have not reached
2
agreement with, and their current contract has been
3
extended by mutual agreement, is all the various units
4
with HGEA. We have Units 3, 4, I believe 11, 13, and
5
14, which is the Water Safety officers. So, all of
6
those units have submitted a notice of arbitration
7
because they've reached an impasse with the State and
8
the counties, so each of those have been set for an
9
arbitration hearing commencing -- two in September, one
10
in October, one or two more in January. So, for the
11
next six months or so, we'll be engaged in arbitration
12
hearings for each of those units. And HGEA has elected
13
to arbitrate each of those units separately,
14
individually, so we'll be going through those by step
15
arbitrations.
16
So, that's where we're at.
17
Again, you know, the numbers we put on the
18
table is -- we submitted -- there's been offers for
19
settlement negotiations. The State and counties have
20
proposed a settlement offer which would be similar
21
financially, financial benefits, to that which SHOPO,
22
HFFA, and UPW are currently receiving, but that was
23
rejected, and the counterproposal was for even higher
24
raises. So, that's where we're at.
25
The rest of the issues are confidential at
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this time. And so, I just wanted to give -- that's the
2
current update as it relates to collective bargaining.
3
Thank you very much. I'm happy to answer any
4
questions.
5
CHAIR: Bill, any of those that are still in
6
negotiation, will that have any -- just your
7
off-the-cuff comment, will any of those go -- and any
8
positions we're dealing with -- into inversion?
9
MR. BRILHANTE: You know, one of the units
10
that is currently set for arbitration is Unit 13, and
11
that's the higher-level management-type unit.
12
CHAIR: Right.
13
MR. BRILHANTE: Although our Unit 13
14
employees would not -- their salaries would not, you
15
know, supersede that of our department heads or
16
deputies, the part that those salaries do affect is in
17
the HRS, our mid-level excluded managers who oversee
18
those various HGEA Unit 13 employees. They are
19
afforded no less than what their union counterparts
20
receive in collective bargaining. So those mid-level
21
managers' salaries, if a salary increase is offered to
22
Unit 13 employee, those would directly affect the
23
salaries of our mid-level managers, and those mid-level
24
managers are generally the employees who, with their
25
salary increase, with their step increases, that they
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get a within-range progression, which is similar to a
2
step increase. When we incorporate those, it's that
3
group of employees who generally we see start getting
4
inversion because they supersede the salaries of their
5
various directors or and/or deputies.
6
CHAIR: Right.
7
MR. BRILHANTE: So, kind of yes but somewhat
8
one step removed.
9
CHAIR: Right.
10
MR. BRILHANTE: Yeah.
11
CHAIR: Okay. Any other questions on that
12
subject? All right. If not, let's move on to item
13
1.C., "Executive Salary Jurisdiction Comparisons." I
14
think you all got that in your package (SEE. ATT. B).
15
Want to talk about that, too, Bill?
16
MR. BRILHANTE: Again, William Brilhante.
17
If you look in your folder, there was a
18
handout. It's called "Executive Salary Jurisdiction
19
Comparison." It's columnized with blue headings. It's
20
probably on the left side.
21
MR. HIGGINS: Glynis to the rescue again.
22
Thank you. Thank you.
23
MR. BRILHANTE: And, as you can see, if you
24
look at the first line, right below the title, it
25
states "Positions" on the furthest left-hand column.
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And then, from left to right, you have your positions
2
in the State which are comparable to the positions
3
within each of the counties.
4
So, then the next is your City and County of
5
Honolulu, Hawai ʻ i County, Maui County, and Kaua ʻ i County.
6
And, if you go down the list, for example, you have the
7
governor, the lieutenant governor, and then for the
8
County, we don't have that, but then we have our mayors
9
and the managing director and the deputy managing
10
director. And you can see how those salaries are in
11
comparison across-the-board.
12
If you look, for the most part, the County of
13
Hawai ʻ i is behind the City and County of Honolulu. In
14
some instances, we're somewhat comparable to that of
15
Maui County. There's some positions within County of
16
Hawai ʻ i where we're a little bit higher than Maui
17
County, and there's some positions we're a little bit
18
lower. But then, generally, for the most part, the
19
salaries in Hawai ʻ i County are a little bit higher than
20
those in Kaua ʻ i County. And I think one of the reasons
21
is Kaua ʻ i County -- it's really, really hard for them to
22
get adjustment to their salaries because their
23
salaries have to be directly approved by their county
24
council, and oftentimes there's maybe not so much
25
mutual agreement between the Administration component,
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the Executive Branch, and the Legislative Branch, which
2
would be the county council.
3
MS. GREENBAUM: I've got a question. So, if
4
we're comparing it -- because population-wise and, I
5
guess, maybe -- population-wise, in size of the unions
6
that some of the departments have to oversee would be
7
pretty comparable?
8
MR. BRILHANTE: To which?
9
MS. GREENBAUM: Maui and Island of Hawai ʻ i?
10
MR. BRILHANTE: You know, I think
11
population-wise, the County of Hawai ʻ i and the County of
12
Maui are somewhat close. I think Maui has a little
13
higher population. But then when you look at
14
logistics, the size of the island, the County of Hawai ʻ i
15
is significantly larger.
16
MS. GREENBAUM: Right.
17
MR. BRILHANTE: So, say, like, for example,
18
the jurisdiction of the fire department, similar size
19
department but, yet, the scope or area of responsibility
20
is significantly larger for the County of Hawai ʻ i. And,
21
oftentimes, we talk about wildland fire or that type of
22
situations, then size does matter.
23
MS. GREENBAUM: Okay. And, as far as union,
24
we're all kind of the same, though, as far as --
25
MR. BRILHANTE: State-wise, all of the
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counties have to negotiate, and they're all in
2
agreement with the same unions.
3
MS. GREENBAUM: Yes. But the size of the --
4
I guess that wouldn't matter. Okay, thank you.
5
MR. HIGGINS: Follow-up on that. So, all of
6
the other counties would be -- the collective
7
bargaining would be the same for them?
8
MR. BRILHANTE: Correct.
9
MR. HIGGINS: Yeah.
10
MR. BRILHANTE: It's -- I'm sorry.
11
MR. HIGGINS: No. So, my question is, in
12
looking at this, the other counties must have a severe
13
inversion problem going on right now? Got to be, I
14
mean, looking at these numbers. And, if they're the
15
same collective bargaining units -- so have you heard
16
of the inversion problem on the other counties, that
17
they're faced with?
18
MR. BRILHANTE: You know, I know, just from
19
my own personal experience, there's issues with
20
inversion on County of Kaua ʻ i because deputy department
21
heads and deputy salaries have not been adjusted for a
22
long time now. My understanding is City and County of
23
Honolulu and Maui, they annually adjust their
24
department heads and deputy salaries, and so since it's
25
so systematic and it's regular and it's ongoing,
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they're generally ahead of the curve when it comes to
2
inversion.
3
MR. HIGGINS: Yeah.
4
MR. BRILHANTE: And I think that's what
5
happens is when the department heads and deputies'
6
salaries are adjusted and then there's a lag, what
7
happens is the union, their counterpart, collective
8
bargaining counterparts or mid-level manager, they're
9
getting annual raises.
10
MS. GREENBAUM: It's built in already.
11
MR. BRILHANTE: Yeah. So, those wheels don't
12
stop turning.
13
So, if you don't give raises for a year or
14
two to department heads, it's inevitable that, at some
15
point, there's going to be an inversion.
16
MR. HIGGINS: Yeah, because we ran into that.
17
That sounds really doable to me because there's no
18
sticker shock on that. So, when that automatic -- for
19
the top echelon, they get a 2 percent every year, or an
20
adjustment, whereas we tried to catch up on ten years,
21
and we had 30, 40, 50 percent. Talk about sticker
22
shock. It's unbelievable. Is it possible for us to do
23
something like that? Maybe that would be -- we've
24
never considered that.
25
MR. BRILHANTE: You know, that's something
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that has been discussed with previous Salary
2
Commissions, and there's been some discussion regarding
3
establishment of, like, a tier system based on years of
4
service. And, that's definitely something that could
5
come up, and we could engage in discussion or
6
consideration, but then I'm going to refer to our
7
esteemed corp. counsel here, Mr. Patel, in relation
8
to -- there's some language in the HRS for department
9
heads and deputies, appointed officials. You will not
10
have a mechanism with automatic salary increases, and
11
that's the reason why you're here.
12
CHAIR: We've heard that from counsel before.
13
MR. PATEL: Yeah. That's right. So, I think
14
it came up towards the beginning part of last year.
15
And that's HRS 78-18.3, I believe. But, basically,
16
what that says is you cannot have a mechanism for an
17
automatic adjustment that's tied to, basically,
18
collective bargaining. So, I think, like Bill just
19
mentioned, as far as how Honolulu does it, they meet
20
annually and make adjustments. So, you can make
21
adjustments to account for that. It's just a matter of
22
not doing that automatically or making that a mandatory
23
requirement.
24
CHAIR: Could you clarify that? I understand
25
that we can't do it in relation to the union, but is
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there anything that says we can't -- just say we're
2
going to automatically give X percent every year?
3
MR. PATEL: Yeah, I would say the charter
4
pretty much covers that because you're required to
5
meet at least annually --
6
CHAIR: Right.
7
MR. PATEL: -- to make a determination of
8
presentable compensation. So, if you read that and tie
9
that in with the HRS statute I just mentioned, I would
10
say you would still need to meet on it.
11
CHAIR: There's nothing that says you
12
couldn't approve that automatic one every year. I
13
don't want to get us in the discussion of comparison
14
with whatever the union raises are. I understand that
15
that's a conflict that we can't -- it would be a
16
violation if we did something there, but I didn't see
17
anything anywhere that says that we couldn't come up
18
with some, quote, “automatic cost of living raise.”
19
MR. PATEL: I believe you would be well
20
within your power to do that; but as you mentioned, you
21
would be approving that --
22
CHAIR: Annually.
23
MR. PATEL: -- every year. Yes. Right. So,
24
it wouldn't necessarily be automatic.
25
CHAIR: Right.
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MR. HIGGINS: Well, that's refreshing. That
2
might be the answer. Mr. Chairman, we could make it
3
something that would be really flexible and tie it to,
4
say, the last 12 months rate of inflation, as an
5
example, so you wouldn't have to say "2 percent every
6
year" or something.
7
CHAIR: Right.
8
MR. HIGGINS: I don't know. That's just...
9
MS. IKEDA: Can I ask Bill a question?
10
CHAIR: Yes, please.
11
MS. IKEDA: Bill, do you know, budgets -- do
12
they automatically put in like a certain percentage,
13
like 2 percent, and then do they include department
14
heads within that budget when they do their annual
15
budget?
16
MR. BRILHANTE: That's a very good question.
17
I think Ms. Sako, our Finance Director, has previously
18
testified to that specific matter, and she did indicate
19
that when they prepared the annual budget, there is
20
provision or adjustment for salary and wage increases
21
on an annual basis. So, I don't want to say
22
specifically.
23
MS. IKEDA: But in essence --
24
MR. BRILHANTE: I know -- generally.
25
MS. IKEDA: -- in essences, then, if it is
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programmed into their budget, we could tap into that.
2
Whatever percentage. I mean, it doesn't have to be a
3
full percentage? Like if they gave you 2 percent, they
4
programmed that in, and we thought that there wasn't
5
enough money, we would give them a 1 percent, but that
6
money is available or there?
7
CHAIR: Yeah, remember, the way our charter
8
reads, we don't have to consider whether there's any
9
money there or not. It doesn't say we can't consider
10
that but, our charge, as Danny pointed out at the last
11
meeting, was to see that our salaries for the people we
12
recommend salary increases for, are equivalent to or in
13
the ballpark with other state, federal, and private
14
industry of similar position, right?
15
And I know everyone, or most of us, on this
16
Commission have concerns about salaries and about the
17
County's budget and do we have the money, and that's
18
certainly understandable, and there's nothing that says
19
we can't consider that; but when it comes to the bottom
20
line, our charge is to do what's right to see that
21
people that we provide salary increases for are
22
appropriate and fair.
23
MS. IKEDA: I just thought about it because
24
they didn't get it for ten years, but if -- at hard
25
times. Because there was a time when the counties and
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the State gave back monies, their salaries. So, in
2
those hard times, if we could look at those things
3
besides -- and I believe that the correlation between
4
every county varies because of the revenues. Like we
5
might be a big island land-wise, but our revenues might
6
not be up to what Maui collects; so, I think that the
7
percentages between each county -- I look at it to see
8
what we really could afford. I mean, you say again
9
that, in our charter, it doesn't -- but it, kind of,
10
influences me and that -- because we could give all the
11
money, but if there's no money, it's still not payable.
12
MR. MEDINA: Right.
13
MR. FRATINARDO: And all I can say -- what
14
Florence is saying and what Danny just said, that makes
15
it even more pertinent that we meet at least once a
16
year to discuss it and not give this automatic --
17
because times change, right?
18
CHAIR: Sure.
19
MR. FRATINARDO: But we still have to
20
remember, like George said, when I took an oath, or
21
everyone here took an oath, was to make sure that the
22
charter was carried out specifically. And so, those are
23
four different things that were on the table. So, I
24
think the bottom line is we obey what the charter says.
25
MR. HIGGINS: You know, Florence has made
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some terrific points here. What I might add to that is
2
there will be down times. Most economists right now
3
throughout the U.S., including the leading economist
4
from the State of Hawai ʻ i, are calling for a slowdown.
5
And so, there might be times, as there were in the past,
6
where pay raises are just impossible, given the income
7
stream from the failing economy or slowdown in the
8
economy.
9
So, therefore, calling it something like
10
"cost of living," and tying that to, say, a trailing
11
one or two years inflation rate would account for
12
slowdowns. And then we would have our meetings and be
13
able to discuss on that basis. So, we wouldn't have a
14
single number, but it would be flexible to allow for
15
times of a slowdown.
16
MR. MEDINA: Can I ask a question? Because I
17
don't know the answer. And that is, if we submit salary
18
recommendations and, budgetarily, they are not able to
19
be acted upon, so then what mechanism is in place,
20
then, to decide where -- I mean, does it come back to
21
the Commission, and then we rethink it and then submit
22
it, or do they figure out what is going to get approved
23
and what is not going to get approved?
24
CHAIR: As Mayor Harry said at our last
25
meeting, they have to find the money; so, if we
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recommend something, they have to get it from
2
somewhere, and there's no coming back to us. Once
3
we've done that, that's the way it is; so that's where
4
it ends.
5
MR. PATEL: Chair, if I can just add to that.
6
So, to add on to that, keep in mind that there's a new
7
process that the Commission established for itself with
8
proposals, right? So, in effect, just to sum it up, the
9
process is you come up with a proposal; you make a
10
written detailed account of it; the public is able to
11
view that proposal; you hold a public hearing; you can
12
request input. So, if you're starting with the proposal
13
and, for some reason, at that point in time, everyone
14
believes there's just no possible way those raises
15
could be implemented, you are going to hear that.
16
MR. MEDINA: Yeah.
17
MR. PATEL: And before that proposal is
18
adopted, you are going to have all that input; so, you
19
could adjust accordingly.
20
CHAIR: Any other comments? If not, let's
21
move on to item 1.D., a briefing by Bill on the State's
22
executive pay plan (SEE ATT. C).
23
MR. BRILHANTE: Nobody told me I would be on
24
the hot seat so much. I'm going to request a salary
25
increase. I'm joking.
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CHAIR: That's what happens when you miss two
2
meetings.
3
MR. BRILHANTE: I know. Talk about pulling
4
the short straw here.
5
CHAIR: You're lucky you aren't “Chair” today.
6
MR. BRILHANTE: Anyway, again, I was being
7
facetious.
8
William Brilhante, again. As you know or may
9
not know, very similar to your function here with the
10
County regarding the Salary Commission, the State has a
11
salary commission as well for State employees,
12
legislators, and the like, and they are called the
13
Commission on Salaries.
14
On March 13th of this current year, they
15
issued and they approved salary wage increases for
16
state administrators and the like. And for that, I'll
17
direct you to the binder. And there's a yellow tab
18
at -- probably the tab that is on the bottom after the
19
red. It says "State's Executive Pay Plan." And you
20
can look at that handout, and that specifically
21
identifies the raises that the Commission on Salaries
22
have approved for the various state directors,
23
deputies, legislators, and the like. So, again, this
24
is nothing new. This is how it works across the State.
25
CHAIR: Yeah. And, somehow, they can get by
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with setting 5 percent per year forever.
2
MR. BRILHANTE: Well, again, there's that
3
distinction. It's assigned to a particular collective
4
bargaining unit or not, so -- I don't want to opine on
5
that.
6
CHAIR: All right. Any questions on that
7
subject? All right. Well, then, let's move on to item
8
1.E.
9
Since we haven't heard from you much, let's
10
hear from Bill to talk about compensation and the like
11
in the private sector.
12
MR. BRILHANTE: Again, thank you very much.
13
William Brilhante, Department of Human Resources.
14
It's my understanding that, although I think
15
one of the reasons that I'm getting called so much is
16
because I wasn't here at the last meeting.
17
But, anyway, so as it relates to this item
18
regarding private sector salary and compensation, it's
19
my understanding there was a request by one, if not
20
two, of the Commissioners for my office to look into --
21
although we have provided the information regarding
22
private sector salaries with that handout previously --
23
I think we provided an update for 2019 as well -- there
24
was a request from one or two of the Commissioners to
25
have my office go and check to see if there is any
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available information regarding private-sector salaries
2
that would be more specific to the County of Hawai ʻ i or
3
the Island of Hawai ʻ i.
4
So, my staff, Ms. Jenny Sakamoto and Michele
5
Lamkin, they undertook that request, and they went and
6
they contacted various entities. They also contacted
7
the Big Island or Hawai ʻ i Island Chamber of Commerce;
8
and across-the-board -- first the Chamber of Commerce
9
responded. Their response was that that's information
10
they don't normally collect or keep a record of, and I
11
think the more common answer that we got was the
12
general premise that even if we did collect it, that's
13
deemed private information, and they would be very
14
reluctant to release that type of information at all.
15
As you know, when we talk about salaries of
16
County officials, that's public information, but
17
private-sector salary, there's no requirement for it to
18
be public. And it is, what it is. I'm sure, you look
19
at HPM or KTA, I can see there would be some reluctance
20
as to them releasing their executive salary. So, that's
21
where we're at. We've attempted. We've made numerous
22
attempts, but our attempts haven't been fruitful -- have
23
been fruitless.
24
CHAIR: Well, thanks, Bill. As Benson
25
pointed out last time, and you mentioned again today,
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there are some Hawai ʻ i County corporations that are in
2
the current survey that participate at least in
3
their -- you don't get to see the exact salaries of
4
people, but the general --
5
MR. BRILHANTE: And I think there's some
6
validity to that because we are in a small community,
7
and if you say, "Oh, this guy is the V.P. of KTA," or
8
something, for example -- I'm not saying
9
specifically -- a lot of people are going to know,
10
specifically, who you're talking about just from a
11
general standpoint, of hey, everybody knows almost
12
everybody here on the Big Island. So, I think that's
13
some of the reluctance.
14
CHAIR: Yeah.
15
MR. HIGGINS: Well, the founders in 1974 of
16
this commission, they had absolutely no idea that it
17
would evolve to that, and I totally understand that;
18
but they put it in that we have to compare against the
19
private, and what you're basically saying is that we
20
can't do that, so I don't know. We can't change the
21
rules that go back to 1974, so are we kind of just --
22
MR. BRILHANTE: I think what we're saying is
23
that when it comes to obtaining the information
24
regarding private-sector employment, we are going to
25
get general type information, which we have provided to
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you in -- I think we provided a report in 2018, and
2
then we provided another report from the commission in
3
2019. And I think what we're saying is as far as
4
additional specification regarding specific positions
5
on the Big Island, that's the information we're not
6
going to be able to provide to you, but we have
7
provided, in my opinion, ample information as it
8
relates to private-sector salaries in general, I mean,
9
for what that's worth.
10
And then, my second point I'm going to raise
11
is one of the dangers we see when we're going to just
12
compare apples to apples is the fact that it's very
13
hard to compare employment positions, areas and
14
responsibility in the private sector, in comparison to
15
the positions in the government sector. Say, for
16
example, you take Department of Public Works. The
17
Department of Public Works director, five divisions:
18
Building, Engineering, Highways, Automotive -- who in
19
the private sector area of responsibilities would come
20
close to that type of responsibility?
21
MR. HIGGINS: Nobody --
22
MS. GREENBAUM: You're absolutely right.
23
MR. HIGGINS: Nobody here.
24
MR. BRILHANTE: Exactly. So, if you're
25
telling me "This person in the private sector makes
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this much," I'm going to tell you, "Well, I don't think
2
it compares. I don't think there's a direct
3
correlation. You're comparing apples and oranges."
4
The other thing that we historically see is
5
the private sector is compensated at a higher rate. I
6
would say, more often than not, the private sector is
7
compensated at a higher rate than the government or
8
public sector. And there's some validity to that.
9
There's some reasons to that because, one, private
10
sector oftentimes aren't -- some are -- but more often
11
than not -- they're not offered the type of fringe
12
benefits that the government or public-sector employees
13
are offered. So, that's something to consider as well.
14
So, when we look at -- I'm just giving you the full
15
breadth of --
16
MR. MEDINA: There's also the risk factor,
17
too, in private sector. You make a mistake, and the
18
whole thing is going to go down, where you could make a
19
mistake here, the County isn't going to go under.
20
Hopefully, not. Risk factors is huge in terms of
21
compensation, right?
22
MS. GREENBAUM: And, William, I apologize,
23
because I'm from the private sector, so in the private
24
sector, we work long hours for the same compensation;
25
and in government, are you also required for that
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salary, or are there limits?
2
MR. BRILHANTE: Well, personally, I can't
3
talk about anybody else but, personally, I think I saw
4
my family at most eight hours a day for the 18 months
5
during the lava flow, for example. And I would say
6
that was across-the-board for the majority of the
7
department heads and deputies. And there was zero
8
compensation for any of us during that time period.
9
And, likewise, when the EOC is activated for a
10
hurricane, the current administration -- or an
11
earthquake, is, you know, department heads and
12
deputies report to the EOC.
13
CHAIR: Part of your job.
14
MR. BRILHANTE: We know that going in. And
15
nobody -- I think if you ask -- at least speaking for
16
myself, I feel privileged to be able to represent the
17
community in that capacity and, at this point, I
18
wouldn't give it up for anything. And it is what it
19
is, and we accept that as department heads and as
20
deputies, and, like I said, we feel privileged that we
21
are able to provide that service to the community.
22
MS. GREENBAUM: And thank you for that.
23
So, it would be fair to say that that would
24
offset the private-sector individual or executive
25
working those long hours, basically, is kind of what
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you're saying?
2
MR. BRILHANTE: I think at the end of the
3
day, it all evens out -- for the most part.
4
MS. GREENBAUM: Okay. Thank you.
5
MR. HIGGINS: Me, again. I totally agree with
6
what everybody said. Florence had a terrific point of
7
view. What Florence was driving at -- and correct me
8
if I'm wrong -- was that the indication of salaries in
9
the private sector would just be more of an indication
10
on the general economic vitality of the various
11
islands.
12
So, I have a question for Danny. In your
13
memo, your confidential memo, you point out our
14
mission, which we have been dealing with for about two-
15
and-a-half years on that. So, that mission specifically
16
states reasonably comparing it to private and public;
17
so, if we cannot get the private stuff, what do you
18
think? What has to happen? I mean, it basically makes
19
it look like it's impossible to complete our mission.
20
MR. PATEL: No, I don't -- I think you
21
compare what you can compare based on the information
22
you do have. And whatever information you do have, you
23
take all of that into account, give it the weight you
24
feel it needs to be given, and you can still fulfill
25
your duties under the charter.
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What I heard Bill saying was that there was
2
information provided. Might not be specific in some
3
respects, but there was information. If you feel, as
4
an individual Commissioner, that that is not
5
information you can use to make any decision to vote
6
either way, then that's up to each Commissioner to make
7
that choice for themselves. But you do have
8
information -- so just compare what you can compare.
9
CHAIR: Any other comments on that subject or
10
questions for Bill? Okay.
11
So, in my view, as expressed at our last
12
meeting, we've essentially accomplished everything that
13
we laid out in our plan. Remember having a plan in
14
place was something that actually was made part of our
15
charter at our last public hearing on that subject.
16
And so, I think we have fulfilled all that in a lot of
17
detail and can provide volumes of information for the
18
mayor to look at, as is required in the way the
19
modifications or the changes that Danny was talking
20
about in our charter.
21
So, the next step is where do you all want to
22
go? We have two approaches that I have been hearing
23
discussed in the last couple of meetings. One is just
24
to deal with those positions that are in inversion at
25
the point in time, and another is to give some portion
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or some part of an across-the-board raise. And
2
remember we got from Bill, from HR, three or four
3
meetings ago, at least, a plan to give a 2 1/2 percent
4
raise in a fair way across-the-board.
5
So, when I looked at inversions, the two that
6
I see at this point are Parks and Recreation and
7
Environmental Management.
8
Correct me, Bill, if there are any others.
9
MR. BRILHANTE: Sure. May I comment on that?
10
CHAIR: Yes.
11
MR. BRILHANTE: I think when we talk about
12
inversion, we have to be very careful, and we have to
13
give careful consideration to what exactly we're
14
discussing.
15
You are correct in that, currently, the two
16
departments where we had inversion are Parks and Rec.
17
and DEM. And those are, somewhat, unique circumstances.
18
CHAIR: Yes.
19
MR. BRILHANTE: Specifically, Parks and Rec.,
20
what happened several years ago is there was a
21
high-ranking engineer from the Building Division. As a
22
matter of fact, he was the Building Division head, the
23
head of Engineering, and he was reallocated or
24
reassigned first to DEM, then subsequently to Parks and
25
Rec.; and under his compensation and the laws associated
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with that, his salary wasn't -- the employer -- the
2
County -- wasn't able to reduce his salary, so he
3
maintained his salary with each of those progressive
4
movements. So, that employee is currently working for
5
Parks and Rec., not in the same capacity that he was
6
with the Department of Public Works, but because of the
7
requirement to maintain his salary, he's a outlier. He
8
has a significantly high salary, much higher than
9
anybody else in his department; and that's because of
10
that circumstance.
11
And the other thing with inversion -- and I'm
12
going to say this with the other department -- is
13
oftentimes, you will get a manager, EM-7, and they will
14
get a specific -- they will get a salary. And what
15
they do is they continue to get annual raises,
16
across-the-board raises, and annual increases, which,
17
for the mid-level managers, we call WRPs, and those,
18
you know, keep compiling itself. If you get somebody
19
with significant years of service, say somebody with
20
27, 28 years of service, and they're in an EM-7
21
position, it's inevitable their salary is going to
22
be --
23
CHAIR: Sure.
24
MR. BRILHANTE: -- significantly higher than
25
anybody else in the department because of their years
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of service. So, then what happens, though, is
2
eventually they retire. And then when they retire, that
3
salary drops all the way down, and they bring in the
4
next person to step in their shoes, and they will start
5
their salary at a much lower rate.
6
So, then the danger with that is if we are
7
going to adjust salaries specific to inversion in those
8
type of situations, do we then readjust them when that
9
individual retires? So, that's the dangerous part, a
10
cautionary tale that I'm spinning here. And so, just
11
something to consider.
12
Again, I think these two departments, as it
13
relates to the inversion, are somewhat outliers, and
14
just, again, food for thought.
15
MR. HIGGINS: Terrific.
16
MS. GREENBAUM: Thank you for that.
17
MS. IKEDA: George, I worked in the public
18
sector for 30 years, and I also worked in private
19
sector. When we used to do this -- because I used to
20
work with salaries -- the conclusion was that
21
inversions will always occur because of the way the
22
system is set up, and that no one could come up with a
23
solution as how to overcome this, and that we would
24
have inversions forever until the system is changed.
25
So, I know we're looking at inversions, but I think
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there's a point that we can only go to, but we cannot
2
overcome it.
3
MR. HIGGINS: Right on.
4
MR. BRILHANTE: And, Chair, if you may allow
5
me.
6
CHAIR: Sure.
7
MR. BRILHANTE: And I reflect back to what
8
happened two years ago, is we saw significant
9
across-the-board inversion because of the ten-year gap
10
as relates to salary adjustment for department heads
11
and deputies. And, at that point in time, that was a
12
major problem -- but since the adjustments were
13
made and each of you took the hit for that --
14
CHAIR: Yes, we did.
15
MR. BRILHANTE: -- publicly, but you guys
16
stood fast, and you did what you felt was right and
17
what the evidence provided to you, you felt was proper
18
to do, and we made that adjustment.
19
Today we're not at that same situation.
20
We're not there. And I'll just leave it at that.
21
CHAIR: Okay. Thanks, Bill. Yeah, all that
22
information is actually very helpful. And it's a good
23
reminder. And you're exactly right. Because of the
24
significant inversion problem that we had last year, or
25
two years, we started on this process, it's indelibly
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etched in our mind that it is a problem we have to deal
2
with. And we, definitely, took a lot of heat for
3
correcting it.
4
So, that being said -- and the discussion that
5
I'm hearing again -- I'll put it out there -- do you
6
want to proceed with some kind of salary raise, such as
7
the one that was presented to us by HR, or --
8
MR. FRATINARDO: I'm ready to move that way,
9
just to act on it already.
10
CHAIR: Do you want to do a motion?
11
MR. FRATINARDO: I'd like to introduce a
12
motion for discussion, or have we discussed it now?
13
CHAIR: We discussed it.
14
MR. FRATINARDO: I would like to introduce a
15
motion based off of Bill Brilhante's recommendation for
16
a 2.5 percent pay raise (SEE ATT. D).
17
MR. HARANO: Are we going to have discussion
18
with the motion?
19
CHAIR: Yes, if we get a second.
20
MR. MEDINA: I second.
21
CHAIR: You second it?
22
MR. MEDINA: I second.
23
CHAIR: Okay. All right. It has been
24
made -- could you clarify? Did you say 2.25?
25
MR. FRATINARDO: 2.5 percent, because --
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CHAIR: Bill's was 2.25.
2
MR. FRATINARDO: I apologize. 2.5. And I
3
was looking right at it. 2.25.
4
CHAIR: Is that okay with the second?
5
MR. MEDINA: Yes.
6
MR. FRATINARDO: I apologize. 2.25.
7
MR. BRILHANTE: Can I interject again? Just
8
to correct the record. I know we have a reporter here,
9
and the last thing I want is to see anybody read in the
10
paper "Bill Brilhante's recommendation." So --
11
MR. FRATINARDO: I apologize. It's 2.25
12
percent.
13
MR. BRILHANTE: -- there was a
14
recommendation -- one of the various recommendations
15
submitted by my department was in reference to what
16
2.25 percent increases in salaries would look like for
17
the department heads and deputies.
18
CHAIR: Better your name in the headlines
19
than ours.
20
MR. BRILHANTE: No cartoons with me in it,
21
thank you.
22
CHAIR: All right. So, you have in front of
23
you the plan from HR, one of the many things that we've
24
looked at. And there's a motion on the floor, a motion
25
made and seconded, that we consider this 2.25 percent
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raise plan for all of those positions that we provide
2
raises for. And so, I'll open it to discussion but,
3
before we do that, I wonder, Bill, if you could go
4
through again all the numbers you put at the bottom of
5
that sheet so everyone understands that you are not
6
doing -- it's a flat amount raise for all the
7
individuals, the way it comes out.
8
MR. BRILHANTE: That's correct. What our
9
department did was we took the across-the-board salary
10
that our excluded managers would be receiving, pursuant
11
to what their collective bargaining unit counterparts
12
received in their most recent contract, collective
13
bargaining agreements, and that was a salary of 2.25
14
percent. And so, what we did is we extrapolated on that
15
2.25 percent, and we incorporated into how that would
16
look as it relates to the current salaries of our
17
department heads and deputies. And if you can see the
18
number on the bottom, if you take, on average, the 2.25
19
percent for our department heads, that's an increase of
20
$5,641 per annum; and if you look at the deputy, it
21
would be an increase of $5,359 per annum. And that's
22
what those numbers are reflective of.
23
CHAIR: All right. Discussion, please.
24
Jim?
25
MR. HIGGINS: Yeah. Just a question. By
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voting on this, are we scrubbing the idea of the cost
2
of living idea? Are we forgetting about that as a
3
possibility, having something like that, similar but
4
different, to the Honolulu executive plan?
5
CHAIR: That's a good point. And we can talk
6
about that, or we can go with this and then set that
7
other up as the way we're going to work in the future.
8
MR. HIGGINS: Yeah, we could make an
9
amendment to this motion to that in the future. The
10
deliberations will be based on some kind of referral to
11
the cost of living of that particular period or past 12
12
months or -- I don't know, something more like that,
13
that sounds like there is a possibility in the future
14
that, in tough times, that it's not just going to be an
15
automatic slam-dunk on our part.
16
CHAIR: Counsel, if we wanted to make that
17
amendment like that, if it was agreeable to the -- is
18
that okay?
19
MR. PATEL: I don't think that would be an
20
amendment to the pending motion because, keep in mind,
21
whatever --
22
CHAIR: New motions thereafter.
23
MR. PATEL: Yeah.
24
-- whatever proposal you folks ultimately
25
adopt, assuming we go through the whole process and it
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gets passed, you guys can make adjustments: status quo,
2
increase, decrease at any time, right? So, if at some
3
point in the future another adjustment or status quo
4
discussion comes up, then the motion can be, "Hey, why
5
don't we include this as a factor."
6
So, to answer your question, I don't think
7
what you suggested would be an amendment to this
8
motion. As I understand it, this motion pertains
9
basically, to the sheet, yeah.
10
CHAIR: All right. So, I guess, in answer to
11
your question, then, Jim, the Chair’s suggestion is
12
that we proceed with this motion, however it comes out,
13
and then make another one to talk about how we're going
14
to deal with it in the future to carry on from now on,
15
so we have a process set in place, if that's okay.
16
MR. HIGGINS: Yeah.
17
MS. IKEDA: So, George, do we approve this
18
motion first and then we make an amendment to it? Is
19
that what you're saying?
20
CHAIR: No. I'm saying if we went down the
21
path and approved this plan, as presented, then that's
22
what we use this year; then, thereafter, Jim could come
23
in with another motion to say -- after this process is
24
approved and goes through the whole process that Danny
25
talked about earlier, we could also put into our
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minutes and as part of our future process from now on a
2
new motion that says the way we're going to come up
3
with these numbers in the future is based on some
4
period 12 months or 18 months cost of living adjustment
5
and go from there.
6
MR. PATEL: Chair, if I can, maybe to help
7
keep everyone's thoughts here be organized, right now,
8
there is no proposed plan. There was a plan to come up
9
with a plan, but there was no actual proposal until
10
just now, when Commissioner Fratinardo made his motion.
11
So, after your discussion, you as a body, are going to
12
decide whether or not the motion is going to pass or
13
not pass. Depending on how that goes, another motion
14
to consider another proposal, potentially, could come
15
up. But where we're at, at this point, is it looks like
16
the Commission is starting the discussion on an actual
17
proposal at this point.
18
CHAIR: All right. Now that that's clear, or
19
not, other questions?
20
MR. MEDINA: Can I ask a question?
21
CHAIR: Yes.
22
MR. MEDINA: What is the duration of these
23
increases? Is it a year? Is it two years? Is it just
24
the next fiscal year?
25
CHAIR: That was not included in the motion,
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but we would have to do that as we continue to develop
2
the plan.
3
So, for instance, if this was approved, then
4
we could come up with another motion as to when it's
5
going to be implemented. So, it could be effective
6
January of 2020; it could be effective July of this
7
year. That's up to us as well. And it's essentially a
8
year thing.
9
MR. PATEL: So those discussions could be a
10
part of this motion, where you would amend to say -- if
11
the main motion is we're considering these pay raises,
12
let's amend to say we're going to consider these pay
13
raises. If they are approved, they are going to be
14
effective as of X date. So that's something you would
15
wrap into this motion, if that was necessary.
16
CHAIR: Nelson?
17
MR. MEDINA: So, then, once it's put into
18
motion, then it sits there; it's basically enforced for
19
a year, right?
20
MR. BRILHANTE: Just to be clear, I think
21
there's some confusion, maybe just within myself.
22
There's two parts to it. The first part is, okay,
23
we're going to authorize raises. When do those raises
24
start?
25
MR. MEDINA: Correct.
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MR. BRILHANTE: Are they going to start
2
January 1st? Are they going to be retro to July 1st?
3
That's a decision that you have to make. That's part
4
of the approval process.
5
Once the raises are put in place, then it is
6
in place until there is a further adjustment by the
7
Commission, whether a decrease, keep the same, or
8
continue and give additional raises. So, there's always
9
those three options, but once the raises are
10
incorporated, approved, then that is the raises. There
11
is no duration of component associated with that.
12
MR. MEDINA: Okay.
13
MR. BRILHANTE: So, it's not like, next year,
14
we come back and they get readjusted automatically.
15
MR. MEDINA: Right.
16
MR. BRILHANTE: That's your job.
17
MR. MEDINA: Okay. So, it could go for a
18
while, this salary scale, until we decide to change it?
19
MR. BRILHANTE: Yeah. And, in the past,
20
you've heard discussion regarding a period of time of
21
up to ten years where some department heads and
22
deputies didn't get any salary adjustment --
23
MR. MEDINA: Wow.
24
MR. BRILHANTE: -- so...
25
MR. MEDINA: Good. We don't want to go down
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that road.
2
MS. GREENBAUM: So, Chair, I have a question.
3
CHAIR: Yes.
4
MS. GREENBAUM: Could we make an
5
adjustment -- instead of the 2.25, have 2 percent
6
increase?
7
MR. MEDINA: Amend the motion?
8
MS. GREENBAUM: I thought we had discussion
9
still.
10
CHAIR: If you're suggesting an amendment to
11
the motion, I guess that would be up to the motioner
12
and the seconder or depending on how the vote goes with
13
the existing number.
14
MS. GREENBAUM: Okay. Thank you.
15
MR. HARANO: George, can I have some time --
16
CHAIR: It stays the way for now.
17
MR. HARANO: -- for myself to talk?
18
CHAIR: Yes, Nelson.
19
MR. HARANO: On my thoughts here, after
20
listening to everyone, I would like to see County
21
government, from their side, put out a little bit more
22
revenue that's more telling to afford this raise. I
23
know the Commission was -- it doesn't matter whether
24
they have the money or not, but this current year
25
budget, there was an $845,000 budget line item for
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short-term rentals, those fees that were to be paid,
2
conforming/nonconforming -- $845,000. I calculate
3
this. If it's at $500 a throw, that is close to 17,000
4
rental units that's supposed to be paying for this fee.
5
17,000 units to me tells me the County not doing their
6
job. And where is the fee application -- the number
7
right now? The last time I saw in the paper was maybe
8
like 1,600. Where are we now, 3,000? Even if I give it
9
a 5,000 -- let's say 5,000 applications are in there --
10
I know it's not there -- we're not even close to
11
getting this budget line item. And we want raises?
12
I'd like to see government do more to put out
13
from their side in terms of revenue before I can think
14
about approving any kind of a salary increase.
15
We talk about comparing apples to oranges.
16
You know, in the private sector, yeah, they get
17
compensated more, I feel because private sector, if
18
your skills, perhaps your image, your marketing is not
19
good, the company doesn't survive.
20
The public sector, you are supported by
21
taxpayers. And it seems like every single time there's
22
a budget shortfall, the residents are the ones that pay
23
for that budget shortfall.
24
I hear it from people that I know on the west
25
side, you know, people are struggling, and they talk
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about the short-term rentals because this is a issue on
2
the west side, where a neighbor is doing an illegal
3
rental that causes commotion and other problems within
4
the neighborhood; but when I look at the application
5
for the short-term rental with about a little over a
6
month to go before the deadline comes in, and we're not
7
even at 5,000 applications, I can't vote now on this
8
right now, the way it is. Thank you.
9
CHAIR: Okay, thanks.
10
Other discussion?
11
Well, if not --
12
MS. IKEDA: Call.
13
CHAIR: Yeah, go. Let's, please.
14
MS. IKEDA: I call for the question.
15
CHAIR: Okay. So, do we need a roll call vote
16
for this, counsel?
17
MR. PATEL: A roll call vote versus?
18
CHAIR: Pardon?
19
MR. PATEL: Versus?
20
CHAIR: A roll call versus I just ask for
21
yeas and nays.
22
MR. PATEL: Oh. Yeah, you can yeas or nays,
23
or you can do it one by one.
24
CHAIR: I think I'll do a roll call vote.
25
So, Glynis?
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MS. YAMADA: Can you just restate the motions
2
to be clear?
3
CHAIR: Yes, I'll do that.
4
The motion as presented was to give the
5
positions that we provide raise approval or disapproval
6
an average of 2.25 percent versus a plan that -- one of
7
the many we looked at, but this one is from HR, which
8
gives department heads an increase of $5,641 and the
9
deputies an increase of $5,359.
10
So, roll call vote. Let's start with Benson.
11
MR. MEDINA: I vote yes.
12
CHAIR: Nelson?
13
MR. HARANO: Nay.
14
MS. IKEDA: Nay.
15
MR. FRATINARDO: Yes.
16
MR. HIGGINS: Nay.
17
MS. GREENBAUM: Nay.
18
CHAIR: Well, that says it; it did not pass.
19
So, the --
20
MR. FRATINARDO: I think it gives us a sense
21
of where we're at and that we're moving forward on
22
this; because we're at the point now where we need to
23
make a decision of whether raises are awarded. So, like
24
Judy was saying earlier, so now we can decide on where
25
we're at as far as what can we agree on -- on a
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reasonable raise? So that's my thoughts.
2
CHAIR: Okay. So that motion, such as it is,
3
did not pass.
4
So, the next question is -- is there anything
5
else you want to propose?
6
MS. IKEDA: So, do we make a new motion?
7
CHAIR: Such as the one Jim suggested
8
earlier.
9
MR. MEDINA: Well, what it sounds like is
10
we're undecided. I mean, we're undecided in terms of
11
how we're going to go forward with this. So, maybe it's
12
just a matter of we need to have more discussion about
13
it or another motion that gives us the ability to talk
14
about it more.
15
CHAIR: Well, we've had quite a bit of
16
discussion, and in the last few months, we've actually
17
looked at a lot of data; so, we're down to the point of,
18
in my opinion, are we going to give raises this year or
19
not? If we let that motion stand, the answer is no
20
raises.
21
If someone wants to come up with another
22
motion based on the cost-of-living concept that was
23
presented earlier, we can consider that. If nobody
24
comes up with anything, as far as I'm concerned, we're
25
done for this year.
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MR. PATEL: Right. So, basically, your
2
options are you can decrease, status quo, or increase.
3
So, if the feeling is status quo for now --
4
take it up at some point in the future, that motion
5
could be made, that future meeting could be set,
6
or any other proposal.
7
MS. GREENBAUM: I think we should increase,
8
but I think not at 2.25. So, maybe another motion to
9
review it at maybe a lower increase, just so that two
10
years from now, or three years from now, we don't end
11
up having to do a large increase; because I think
12
that's going to impact our constituents even more and
13
upset them. It wouldn't be fair.
14
MS. IKEDA: Danny, can we at this point say
15
that, right now, we just want to delay it and put a
16
timetable, like for a month or two months, and then
17
revisit it? Or make a motion to --
18
CHAIR: Sure, we could do that, or we can do
19
what Judy was talking about, a lower number, if you all
20
want to try that.
21
MR. FRATINARDO: Can we take a break? Five
22
minutes? That way, Judy can think about it if she
23
would like to make the motion.
24
MS. GREENBAUM: Yes, we could. Thank you.
25
CHAIR: All right. Let's take a ten-minute
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break.
2
(Recess ensued from 11:11 a.m. to 11:22 a.m.)
3
CHAIR: So, let's resume the meeting.
4
So, where we were when we adjourned or went
5
into recess was -- were there any other suggestions or
6
any other proposals that people wanted to come up with?
7
MR. HIGGINS: I've got one. In light of TMT,
8
still recovering from the rain and the volcano, I'd
9
like to think about something like this. Given the
10
fact that we don't know the end result of any of those
11
items and how they're going to affect the economy, I
12
would like to consider a cost-of-living adjustment of
13
1.25 effective January 1 or something like that. The
14
time is not that important, but is having it called a
15
cost-of-living adjustment of 1.25.
16
CHAIR: Okay. Is there a second to that?
17
MR. HIGGINS: No, that's not a motion. I'm
18
just throwing that out as a possible --
19
MS. GREENBAUM: Oh, I like that.
20
MR. FRATINARDO: So, I would like to make the
21
motion of a 1.25 percent cost-of-living adjustment.
22
MS. GREENBAUM: I second.
23
CHAIR: All right. Motion has been made and
24
seconded that we apply a 1.25 cost-of-living
25
adjustment, so the floor is open for discussion.
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MS. IKEDA: Could it be a little more
2
specific timewise and say just at this particular
3
time? I think that would leave us open for future
4
discussions and future adjustments that we want to
5
make.
6
MS. GREENBAUM: This increase, if it's
7
effective January 1st, 2020, is it for a calendar year,
8
until we revote again?
9
CHAIR: If we put it in -- the motion says
10
January of 2020, but as was pointed out earlier, once
11
we put it in effect, it's in effect until we change it.
12
MS. GREENBAUM: Okay.
13
MR. FRATINARDO: So, I'm just asking is this
14
for a particular time period? I understand it's at
15
2020, January 1st, but are we specifying it's for a
16
particular time or what have you?
17
MR. HIGGINS: It just goes forever, right?
18
MR. MEDINA: Right. It goes until we change
19
it, right?
20
MR. HIGGINS: Yeah.
21
MR. MEDINA: Yeah, it goes until we change
22
it.
23
MR. HIGGINS: Just, again, it doesn't have to
24
be solid. My thinking on it is, besides the number, is
25
that there's still a lot of folks out there suffering
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1
on this island from the three items that I mentioned,
2
and there's still no conclusive evidence on how bad any
3
of those are going to affect our economy. So, that's
4
why I think it would be smart for us to do it something
5
like that, that we recognize that our folks are working
6
really hard and, compared to the other counties,
7
certainly, deserve a pay raise, keeping in mind that;
8
and then on the other side of it is that we have a lot
9
of folks still hurting on our island.
10
MS. GREENBAUM: I agree.
11
CHAIR: Okay. Other discussion?
12
Call for the question. All right. Let's do
13
roll call vote.
14
Let's start with Judy.
15
MS. IKEDA: Can you restate the motion?
16
CHAIR: Yes, I will do that.
17
The motion on the floor is to give all those
18
individuals or positions that we provide raises for a
19
1.25 percent cost-of-living adjustment effective
20
January 1, 2020.
21
MR. PATEL: So, just keep in mind, yeah, with
22
the new process, right, so you're coming up with a
23
proposal. So, let's just say hypothetically, if this
24
passes, at the next meeting, you will have that in
25
written form, the Commission will adopt it as written,
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because that written form needs to be provided to the
2
public for review, and then you have public hearings,
3
and then ultimately you adopt it at a subsequent
4
meeting.
5
MS. GREENBAUM: Perfect.
6
CHAIR: Okay. Roll call vote.
7
Judy?
8
MS. GREENBAUM: Yea.
9
MR. HIGGINS: Yea.
10
MR. FRATINARDO: Yes.
11
MS. IKEDA: Yes.
12
MR. HARANO: Nay.
13
MR. MEDINA: Yes.
14
CHAIR: Chair votes yes.
15
So, one nay, the rest yeses; so that passes.
16
And what that means is it starts a process now. As
17
Danny just explained, that's part of our charter. And
18
so, we have to put this out to the public, and we have
19
to actually do a fairly extensive write-up of all the
20
process that we've gone through in addition to
21
providing it to the public; and then, after that has
22
been published in the paper, then we have to do a
23
public hearing.
24
MR. BRILHANTE: And what we'll do is, just
25
for your reference, or your point of reference, if you
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look at the Commission rules, Section 2.04 and 1, 2 --
2
specifically, section -2 --
3
MR. HIGGINS: Where are we, Bill? Sorry.
4
MR. BRILHANTE: Section 204. So, it's the
5
last section.
6
CHAIR: The very last section.
7
MR. HIGGINS: Okay.
8
CHAIR: Last page.
9
MR. HARANO: Was the 10 percent struck from
10
this? I thought the notice to public was in excess of
11
10 percent.
12
MR. FRATINARDO: That's to the council.
13
CHAIR: So, 204-4 -- so that's the process
14
we'll be following, submission of public hearing to the
15
county clerk and the mayor after that process is dealt
16
with.
17
MR. MEDINA: Chair, I have a question. So, if
18
we're going to meet our January 1 deadline, so what is
19
the reasonable schedule in terms of getting all of this
20
stuff done? Does it now ramp up how quickly we have to
21
kind of put this out there?
22
CHAIR: We can always go retroactive --
23
MR. MEDINA: Okay.
24
CHAIR: -- if it doesn't happen in time.
25
MR. MEDINA: Okay.
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CHAIR: I guess the first thing is unless
2
there's any other business, it's for us to decide when
3
we'd like to have our next meeting so we can have all
4
the information out there.
5
MR. BRILHANTE: So, Chair, we still have
6
section F --
7
CHAIR: F to do, yes.
8
MR. BRILHANTE: May I interject?
9
CHAIR: Yes.
10
MR. BRILHANTE: We've touched upon some of
11
that regarding the salary inversion. I think I
12
addressed that.
13
As it relates to the lump-sum payments and
14
the ERS, each of you are in receipt -- Ms. Sako wasn't
15
able to stay for today's meeting; however, she did
16
draft a brief memo in response to your specific
17
questions to her from the last meeting (SEE ATT. E). And
18
if you look at that memo, it's dated August 15, 2019
19
to Salary Commission from Ms. Deanna Sako, "Requested
20
Information." And if you look at numerical items 1 and
21
2, she specifically states "All wage payments, even
22
lump sum payments, are subject to ERS payments by both
23
the employee and the employer." And as to No. 2, the
24
question was the percentage of salary and wages and
25
fringe benefits for fiscal year 2020 is 64.3 percent
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and is expected to remain relatively the same for the
2
next two years, ranging between 64 percent and 65
3
percent.
4
So, I think those were the two items.
5
MR. HIGGINS: Well done.
6
CHAIR: Yeah. Thank you for bringing that
7
up. That answers --
8
MR. BRILHANTE: Maybe --
9
CHAIR: -- questions on that.
10
MR. BRILHANTE: -- file this communication,
11
right? Should we? Up to you.
12
MR. PATEL: Yeah, you can --
13
MS. IKEDA: Should we move to accept and file
14
it?
15
MR. PATEL: Yes.
16
MS. IKEDA: Okay. I move to accept and file
17
the information that Deanna Sako provided to us.
18
MR. FRATINARDO: I second.
19
CHAIR: Discussion?
20
Hearing none, all in favor say "Aye."
21
(All members responded affirmatively.)
22
CHAIR: Opposed the same?
23
Are you all willing to have another meeting
24
in August, or do you want to wait until September?
25
MS. IKEDA: This is August.
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CHAIR: Another meeting in August.
2
MR. FRATINARDO: Another meeting, yeah.
3
MS. GREENBAUM: Is that enough time, though?
4
MR. HIGGINS: Don't we have to wait 30 days?
5
I'm confused.
6
MS. GREENBAUM: So, the proposal has to be
7
presented, and then we post it?
8
MR. HIGGINS: What do we do next?
9
MS. GREENBAUM: Chair, so basically, the
10
proposal has to be presented, and then it gets posted.
11
Is that correct?
12
MR. PATEL: Yeah, so what has to happen is
13
the department is going to prepare the written
14
proposal. So, at the next meeting, the Commission would
15
vote to adopt it or change it, whatever it is.
16
Assuming it's adopted, then it gets published. So
17
you're looking at the next meeting to adopt the formal
18
written proposal.
19
MR. FRATINARDO: So, the sooner the better.
20
MS. GREENBAUM: I think in August, if we can,
21
yeah. Get it done.
22
CHAIR: How is the 28th of August? Either
23
the 28th of August or September the 5th.
24
Let's verify that the room is still available
25
then, on the 28th.
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Okay. So, the 28th of August works. So, our
2
next meeting here, the 28th of August at 10:00 a.m.
3
MR. HARANO: I will be out of town, George.
4
I'm out of town.
5
CHAIR: Is it okay -- do you want us to wait?
6
MR. HARANO: I think I will be outvoted.
7
CHAIR: Okay. All right. 28th of August,
8
then, next meeting.
9
Any other items for today's agenda? If not,
10
we're adjourned.
11
(The Salary Commission meeting adjourned at
12
11:38 a.m.)
13
14
15
16
17
18
19
20
21
22
23
24
25
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1 STATE OF HAWAII
2 ss.
3 COUNTY OF HAWAII
4
5 I, TERI HOSKINS, 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 August, 2019.
11
12
13
14 Registered Merit Reporter
15
16
17
18
19
20
21
22
23
24
25
ISLAND COURT REPORTING & TRANSCRIPTION SERVICES
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Ms. Teri Hoskins, Certified Court Reporter, transcribed the aforementioned proceedings of the
Salary Commission at its meeting held on August 15, 2019.
Glynis Yamada, Secretary, Salary Commission, had incorporated some minor
formatting/housekeeping revisions throughout the transcript.
Respectfully Submitted,
Glynis Yamada, Secretary
APPROVED:
George W. Campbell, Chair
Salary Commission
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.
Amended: January 24,2019 ATT. A
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• Effective July 1, 2019 and July 1, 2020, increase other executive branch
salaries and salary ranges by 5% each year;
• Effective July 1, 2021; July 1, 2022; July 1, 2023; July 1, 2024, increase the
salaries and salary ranges of all positions by 2.5% each year.
• Section 26-52, HRS, provides that if the adjutant general, Department of
Defense salary conflicts with the pay and allowance fixed by the tables of the
regular army or air force of the United States, the latter shall prevail in setting
the salary. Therefore, the Commission recommends that the salaries and
future salary increases for the adjutant general and deputy adjutant general
be set by the pay and allowance tables of the regular army or air force of the
United States for officers of comparable rank and time in service over the
period covered by this Commission's recommendation.
Figure 1 - Executive Salary Recommendations
Position NP Sf 7/1/2019 7/1/2020 7/1/2021 7/1/2022 7/1/2023 7/1/2024
Governor 1 165,048 171,648 175,944 180,348 184,860 189,480
Lieutenant Governor 1 162,552 170,676 174,948 179,316 183,804 188,400
Tier 1
Admin.Director of the State,
Attorney General,Director of 3 162,552 170,676 174,948 179,316 183,804 188,400
Budget and Finance
Tier 2 Dept.Directors
DAGS, DBEDT,DCCA,
DHHL,DHRD,DHS,DLIR, 13 154,812 162,552 166,620 170,784 175,056 179,436
DLNR,DOA,DOH,DOT,
PSD,TAX
Tier 1 Deputy Dept.
Directors 141,420- 148,488- 152,196- 156,000- 159,900- 163,896-
Attorney General,Budget and 2 149,544 157,020 160,944 164,964 169,092 173,316
Finance
Tier 2 Deputy Dept.
Directors
DAGS,DBEDT,DCCA, 134,676- 141,408- 144,948- 148,572- 152,292- 156,096-
DHHL,DHRD,DHS,DLIR, 24 142,416 149,532 153,276 157,104 161,028 165,048
DLNR,DOA,DOH,DOT,
PSD,TAX
ATT. C
Page 10 of 104
Legislative Branch
In formulating recommendations on salary adjustments for members of the State
legislature, the Commission sought to provide recommendations that are fair and
equitable given the duties, time commitment, responsibilities, and historical and
comparative pay of legislators.
The annual salary for State legislators is currently between 4% to 17% (average
of 9%) below the salaries of Council members from each of the four Counties. Annual
salary for the Senate President and House Speaker is currently between 3% to 22%
(average of 11%) below the Council Chairs. The Commission sought to address some
of this disparity, recognizing the scope of legislators' responsibilities through its
recommendations.
Any salary recommendation offered by the 2019 Commission will be effective
January 1, 2021. In addition, HRS 26-56 allows the Commission to include incremental
increases that take effect prior to the convening of the next salary Commission. The
next Commission is expected to convene in November 2024.
The Commission's recommendations for the legislative branch are as follows
(see Figure 3):
• Effective January 1, 2021, increase the salaries of all senators and
representatives, including the President of the Senate and Speaker of the
House of Representatives, by 10%.
• Effective January 1, 2022; January 1, 2023; and January 1, 2024, increase
the salaries of all senators and representatives, including the President of the
Senate and Speaker of the House of Representatives, by 2.5% each year.
Figure 3 - Legislative Salary Recommendations
No. of
Position 1/1/2021 1/1/2022 1/1/2023 1/1/2024
Empl.
House Speaker/Senate
President 2 77,112 79,044 81,024 83,052
Representative/Senator 74 68,868 70,584 72,348 74,160
Page 12 of 104
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Harry Kim ..* Deanna S.Sako
Mayor ���:... .
Director
• 7T�'CF•N'Mt• -
Steven A.Hunt
Deputy Director
County of Hawaii
Finance Department
25 Aupuni Street,Suite 2103 • Hilo,Hawai`i 96720
(808)961-8234 • Fax(808)961-8569
August 15, 2019
TO: Salary Commission
FROM: Deanna Sako, Finance Director e
SUBJECT: Requested Information
At the June 27, 2019 meeting, I was not able to provide some of the information you requested.
That information is below:
1. All wage payments, even lump sum payments, are subject to ERS payments by both the
employee and the employer.
2. The percentage of salaries & wages and fringe benefits for fiscal year 2020 is 64.3%and
is expected to remain relatively the same for the next two years ranging between 64% and
65%.
•
ATT. E
Hawai'i County is an Equal Opportunity Employer and Provider