2006-09-21 Cost of Government Commission Minutes

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Mr. Ben said they also experimented with e- learning for employees, but many would not show up, or the departments would not give them time off. They have had problems with departments not allowing employees time during work to attend. k. Out - sourcing projects rather than hiring more employees. Mr. Ben said there is nothing to prevent out - sourcing, but certain requirements would need to be followed. (A break was taken from 11: 05 a. m. to 11:09 a. m., at which time the Chair called the meeting back to order) Mr. Ben said there are parameters concerning out - sourcing. There was a 1995 or 1996 Hawaii Supreme Court case concerning the landfill at Puuanahulu. The County had contracted out the building and operation of this landfill, and the Supreme Court ruled that because it was historically a civil service job, the County could not contract it out. They would need a specific law exempting those workers from the civil service, similar to how county attorneys and department heads are exempt. Act 90 states that if the services can be done as well as or better than a civil servant doing it, and at a lower cost, then it can be contracted out. Act 90 sunsets next June, so the County needs to get it extended or made permanent. The parameter is if someone can do a job better at equal or less cost, it can be contracted out. Also, if civil servants never did perform a particular job, it can be contracted out. The Court has said that this provision covers current services and any future services which may develop. Mr. Ben said this leaves a gray area, since future services could not have been done by civil servants. There is another exemption which says if it cannot be predicted how much time is involved to produce a product, it can be contracted out. This means a lot of engineering projects are contracted out, even though the County has engineers whose duties encompass the work. 1. Implementation of a payroll lag. Mr. Joseph stated that the COGC is considering recommending a five -day stagger to the current payroll, to be in line with the State's system. Mr. Ben asked why, and Mr. Joseph explained that sometimes hourly employees send their time sheets in early and are overpaid, which generates more paperwork to get the County reimbursed. A lag would help alleviate this problem. Mr. Ben said that the State had problems which the County does not have. The County works very well with its employees in collecting money when there is an overpayment situation. The controller works with the employee to devise a payback schedule, and there have not been issues concerning this. A payroll lag has been fiercely objected to by the unions, and there is a detailed history on how the State managed to achieve this. Mr. Joseph asked whether Mr. Ben's position was that "the County is doing an adequate job, don't change it." Mr. Ben said that if the Finance Department wants this lag, it wouldn't be told no. However, they would need to sit down with the unions. Mr. Joseph asked whether the COGC should recommend the payroll lag, and Mr. Ben said that was the COGC's purview. 10