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HomeMy WebLinkAboutMIN CHC 1989-04-26 Minutes of HAWAII COUNTY CHARTER COMMISSION April 26 , 1989 I . CALL TO ORDER Chairman Bethea called the meeting to order at approximately 3 : 31 p.m. at the Department of Liquor Control , Conference Room #230, 101 Aupuni Street, Hilo, Hawaii. II . ROLL CALL Members Robert E. Bethea, Chairman Present: Sherwood Greenwell , Co-Chairman Pamela F. Cushnie Francine Duncan David Fuertes H. Peter L'Orange Aileen Lum James 0. Juvik Akira T. Omonaka Patricia M. Poppe Steven Nishikawa Secretary:R. Marie Jacobs Others J. R. Smoot , West Hawaii Committee Present: Fred Giannini , Corporation Counsel ' s Office William Bennett , West Hawaii Committee John R. Hughes, KIPA Barry Mizuno, Finance Director G. A. Rock, Finance Dept . /Data Processing Chris Yuen, Attorney Lorraine Inouye, County Council Janice Bibb, Liquor Department Director Lynn C. Maunakea, Research & Development III. CORRECT AND APPROVE MINUTES OF 04/04/89 The minutes were unanimously approved, with one correction: Jack. Smoot , Francis McMahon and Bill Bennett are with the West Hawaii Committee, not "Community. " IIIc. FINANCIAL REPORT $322 . 92 was expended for the month; balance, $97 ,431.89 . IV. APPOINTMENT OF ATTORNEY Dr. Juvik, on behalf of the Search Committee, reported that the committee had met several times , conducted interviews and recommended that Chris Yuen be retained for the position of counsel to the commission. 256 -: Corrected 5/5/89 (Verbatim begins. ) BETHEA: Yes , just . . . subject to any objections from the members , my intention is to ask Mr. Yuen to make himself available to answer any questions that the commission might have. And then after you ask him whatever questions , in accordance with the rules and as permitted , and I . . . this is what happened at the last part of our meeting, we can go into executive session and discuss the candidacy. And then any vote that we take will be taken at an open meeting. If there ' s no objections , that would be the procedure that the Chair suggests in this regard. Hearing no objections , Mr. Yuen, are you willing to step up to the microphone? Mr. Yuen is available for any question that you might have about his background or his ability to serve as the attorney for this commission. Would anybody like to raise any particu- lar issues or raise any particular questions at this time? Yes. CUSHNIE: Thank you, Mr. Chairman. Hello , Mr . Yuen. Mr. Yuen and I have worked together for some Family Court business and I was surprised to see here that one of our paragraphs from Mr. Bethea' s memo of April 17th (Attachment A) was that there may be possible concerns over Mr. Yuen' s quali . . . in certain controversial community issues. And I have not known Mr . Yuen to be associated with controversial issues , so I 'm asking him, if it ' s appropriate, what might we be questioned about if there were any concerns? Are there some controversial issues that you ' re associated with? YUEN: Well , I 'd say certainly I 've been working for a number of land-use related issues . I 've been working part of the last couple of years to try to preserve an area in Kona, Makalawena, and the adjoining areas. I suppose you could call that controversial but I think everybody wanted to be for it , but I . . . it could be. . . it could be called. . . they could call it controversial. And I expect that in my. . . I would expect that I 'm going to continue to do this sort of thing. Perhaps the best way to talk about how this would relate to my work with the commission would be to talk about how I see my role with the commission. I think, if I were selected , I think the commission' s attorney, really the attorney for any governmental body, is . . .the proper role is like your mechanic for your car. Your mechanic is responsible for making sure that your car runs but not for telling you where to drive it. And that ' s how I see the role of the attorney for the commission. I don' t see my involvement in other kinds of issues as playing a role and kind of advice. . . the kind of legal advice I would give to the commission if I were selected. 257 CUSHNIE: Thank you. BETHEA: Thank you. Are there other questions? Hearing none, you ' re excused , Chris . And we' ll go on with the scheduled meeting. YUEN: Okay. Thanks very much. V. FINANCE DEPARTMENT OPERATIONS By Barry Mizuno (Verbatim begins) BETHEA: I want to thank you for being here today. Our practice in the past has been to invite people in various positions for the County to come and make a presentation about their particular department , and to feel free as well to offer suggestions for changes in the County Charter based on their observations and their position paper. You can begin in any way you want . Yours is obviously a very important department with a lot of space (inaudible) in the County Charter on financial matters and on your department. And I for one have lots of questions , but why don' t you, if you want to start with the summary of your department , what ' s the pleasure of the commission? Yours has been circulated (Attachment B) . Has everybody read it? Are we really ready to go into the questionnaire and into questions and answers? GREENWELL: Yes , I ' d like to make a comment which I hope you will want to agree with and that is where you bring into the total County government , the use of the computers . Where today it ' s pretty well limited to your department. But it could be better utilized from. . .throughout the whole County. I think that ' s a good idea. BETHEA: Yes. CUSHNIE: Thank you, Mr. Chairman. Mr. Mizuno, I have a question. I believe in the Charter you are charged with an annual budget . Tell me if this is outside of your scope of things. Would you and how do you feel about a biannual , I mean, every two years , a financial budget? MIZUNO: I think there is merit to going to a biannual budget . I think our budget is growing now and very shortly is gonna exceed $100 million dollars a year . And we already spend , you know, countless hours preparing an annual budget. And I think thought should be given to going to a biannual. CUSHNIE: Thank you. 258 MIZUNO: I haven' t . . . I don' t have a firm commitment one way or the other , but I think we ought to look at it. CUSHNIE: I thought in terms of staff hours , especially since one of our last meetings , a speaker made reference to the type crunch between the legislative budget arriving and the necessity of grinding something out on the County level . Having been on the Council , I could see where the Council might want to keep an annual budget and have closer control . Does anyone really benefit by having a biannual budget? Different departments , let ' s say, being able to plan over a two-year period. You think there' s some cost- effectiveness there? MIZUNO: I think so. . . I believe that would be the best; the biggest benefit would be in planning. As a matter of fact in. . . one of our activities has been to start imple- menting strategic planning type of budgeting in which we go out a minimum of six years , and going possibly out to 20 years. Now. . .and I 'm not talking about a precise financial exercise going on 20 years . Obviously, the further out you go the more vague it becomes. However , we need some sort of plan which puts things together based on some assumptions that we make today. And as we go down the road, we change our assumptions and make the changes to the strategic plans as necessary. But I think overall it will give us a good base to plan with. CUSHNIE: Uh-huh. MIZUNO: So I think a biannual would be one step closer to getting this total plan together. CUSHNIE: One last question if I may. June 30th is apparently a deadline at which the mayor must have made his vetos and the Council must have held hearings. . . it can be more specific. Yet there was an interpretation (inaudible) this year and addressed by the Corp Counsel . The feeling was that this was a vaguery in the Charter; it could have been interpreted either way. Are you more familiar of course with it than I am? Do you know a specific portion in the Charter that needs to be redefined or addressed? MIZUNO: I 'm sorry, I don' t know. CUSHNIE: Okay. I ' ll get more specific details then. Thank you. BETHEA: Yes. JUVIK: One follow-up on that . In terms of going to a biannual budget, for example, do you feel there' s any 259 difficulty on the basis of your revenue forecasting from property taxes or other revenue sources that draws the County' s budget? Do you feel that we have a reasonable handle on the two-year forecast as you would on the one- year forecast? I mean, how would the forecast been (inaudible) on (inaudible) ? Does the County have a pretty good handle on it? MIZUNO: I believe we do. And I think with the new computer programs , I think, as time goes by we ' ll get even better at forecasting. So I don' t see that as a big problem. BETHEA: Mr. Mizuno, if you could bear with me and pull out your copy of the Charter there and turn to page. . . actually, the financial procedure section starts on page 16 and goes to 17 and on. I have a couple of questions about Section 10. 3 , items (a) (2) to (4) , about what is required. And it says , "and the proposed expenditures shall be shown by agencies and programs . " You see that at the end of item (2)? 10 . 3 , subparagraph (a) (2)? MIZUNO: Yes . BETHEA: Alright . And then (a) (4) , "The sums recommended for appropriation on the basis of the proposed expenditures , which sums need not be itemized further than by agencies and programs. " I assume that you' re working on the budget now. I mean, you have to have it submitted with what , 10 days after the close of the Legislature? So. . . but when it says itemized. . . shall not be itemized further than agencies and programs , that leads me to believe that it ' s not very finely broken down and yet on the other hand my understanding has been that the budget when it ' s proposed deals with very small items within particular departments. Which is the case? MIZUNO: It ' s . . . I believe over the years and now. . . I 've been in it only for four months now, but my understanding is that the budget process has now changed to a very finite type of line-item budgeting that . . . I 'm sorry, the Council has become involved in that area now, meaning very tight controls over our numbers that we submit . Am I . . . BETHEA: Yeah, you' re answering my question. Let me direct a question to Mr. Greenwell . Because I understood that you had said at our last meeting the week before that that it always had been the County Council practice to get into all the budget details . I mean, down to all . . . GREENWELL: Not to scrutinize it quite as thoroughly as they have in the last , from the experience that I 've had , 260 this last year. I 've never seen such scrutiny. And I can' t see the reason for it . BETHEA: Well , I . . . GREENWELL: It shows a lack of faith from the adminis- tration and the administration should be given a certain amount of leeway and authority. BETHEA: Right . Well that ' s what I was trying to get at. I don' t know whether it ' s a problem that can be handled by the Charter. But as I read the Charter. . . I still read it looking at the common-sense meaning of the statute that you don' t break it down into small items. Certainly, Mr . Greenwell , as you suggest , one of the things is if the Council doesn' t have a lot of confidence in the administra- tion, they could try to (inaudible) it down. I think the other aspect is , that I suggested the last meeting, is that with computer availability and computer capacity for tracking all of these items , that that promotes this sort of an inquiry. GREENWELL: Of course, there' s another way to remedy this and that is to go into a city-manager-type of government . MIZUNO: If I might interject , Mr. Bethea. Part of the problem, I believe, is that it ' s been. . . there ' s been a per- ception problem on both sides , I think, meaning the legis- lative and the administration, that each side is trying to pull one over the other , which certainly is not the case right now. Now part of the problem which created this perception problem, I believe, is in the manner in which we report our financial status on a monthly basis . And for various reasons the information that administration has provided Council , I believe, has been inadequate; and that we are in the process of changing this . . .a big step in this area would be for us to present to the Council on a monthly basis what the original budget was. In other words , what they had originally improved at the very beginning of the year . What you present right now is a modified budget . In other words , any transfers that administration makes , any ordinances that have approved transfers of. . . I 'm sorry, appropriated additional revenues , are shown as an adjusted budget account , without showing the original budget. And so the perception is we' re changing the budget now, which is not the fact . It ' s merely that it ' s not shown as a separate line item, as a separate column. And I think by modifying our reporting process , it will improve a great deal this perception problem that we have between administration and Council . We' re working on it. 261 BETHEA: Yep. I guess part of my point is , when I look at these provisions , and I just leave it open as to whether or not it should be changed, it looks like that the admin- istration proposes a budget which has got to act together within 10 days after the legislative session, which means I assume that they have to take into accounts their. . .the results of their search for grants-in-aid and. . . so they have to work in. . .along very rapidly in order to get the document together. In describing the document , it says , "which sums need not be itemized further than by agencies and programs , " which implies a general sort of a presentation to the County Council as a policymaker . And then when you look at the short time fuse that the County has to consider it . . .the Council rather, because it says , "The Council shall adopt the operating budget on or before the thirtieth day of June. " Otherwise the budget proposed by the mayor is adopted. So it looks like as if this particular Charter contemplates a pretty speedy process . That there isn' t a lot of time for the Council to get into all of the. . .all of the details of it . If I may, and subject to interruptions by any commission member at any time, let me go on and ask this . . . some very particular questions if I may about the language. For example, at the top of page 18 , just before the beginning after subsection (c) in (4) there, and they are talking about the operating program, "Such other informa- tion as the council or mayor may request. " Is it your experience that there are specific requests made for individual items and a further breakdown of the budget? MIZUNO: Very definitely. We go into a., . . I ' ll give you a for instance, computer equipment. Or , yeah, we' ll use that as an example. They will want to know. . .we will be required to provide, you know, one terminal , one computer screen, one printer , one what-you-may-call-it and so on and so forth, which totals the number that ' s in the budget. BETHEA: Who requires that? MIZUNO: Council . BETHEA: So, are we as a matter of fact , if I 'm correct about the way this Charter looks at it , have we gotten away from this system because the Council is now getting involved in the details of the budget? MIZUNO: Yes . L 'ORANGE: Mr. Chairman, I ' d like to just make a comment that the process that is going on right now makes it 262 virtually impossible for the general public to perceive what ' s going on to respond to what ' s happening; because the data is very difficult to obtain in a timely fashion. And there' s so much data, it ' s very difficult to review with that short period of time. And if the Council is truly representing the public, the public should have a meaning- ful opportunity to respond and I know the Council is not happy when it constantly goes to outlying districts because not too many people come to the public hearings . The difficulty is it ' s very difficult to make a responsible statement , because you don' t have the data, which (inaudible) in Kona. JUVIK: Excuse me, following along that line, Mr . Mizuno, is there any reason. . . I understand the deadlines are basically written by the state Legislature in their own (inaudible) . However, the state Legislature does not provide the bulk of the money for the County. It provides obviously grants-in-aid and other sources . Is there any reason the budget process could not begin before or during. . .even before the legislative session, in which a draft budget comes . . .proposed budget is coming. . .a whole number of things in that budget are not going to change at all as a consequence of the legislative session. And it would seem to me if the draft budget could be developed and circulated and run around to the different districts and so forth, so people would get an idea of whether it ' s an annual or biannual budget doesn' t matter , where the County' s proposing to spend this money, debate these things , you know, it comes out in the paper that the County has a certain priority list of things they want to do, capital improvements and so on. Whether it ' s the mayor ' s proposal , the County Council (inaudible) share where this came from, they' re not really vague. . .doesn' t seem like. . . seem like they' re not (inaudible) that strong in the community. And I agree with. . . that (inaudible) up on districts , probably you don' t get much chance to input the public anymore. Is there any reason that you couldn' t develop a fairly substantial budget proposal much earlier in the year with the Council , review it with the public, and obviously, they' re are gonna have to be some blanks in there for state, legislative input , capital projects and so forth. But it would give it. . . I think it would be easier to finish the budget obviously by just plugging in these new numbers that come out of the state Legislature, rather than sit around and wait until they finish, and go into an extra session or whatever. So, what do you think' s the matter? MIZUNO: First of all , we don' t wait around . . . JUVIK: No, I know. I understand, I 'm sorry. 263 MIZUNO: ( Inaudible. ) The budget process starts in October of every year. And we prepare a budget for the Legislature in January which is submitted to the Legislature. This is where we determine how much to ask the Legislature for in grants. This year we went to the Legislature with a budget , requesting $14 .7 million dollars . And we got $13 .4 million dollars , which we are very thankful for. And I think we' ll do very well with it. But again we don' t start this process after the. . .we find out how much money we got from Legislature. There' s another problem in that real property taxes , as far as the tax rolls , are finally completed in February. And the submission to Council is as of April 20 , when we submit to Council what are assessed evaluations are, the final numbers , which we base our tax revenues on. And that ' s kind of the timing of it . We do have a pretty good handle on that number in January as a matter of fact . The revenues from the state, as far as state grants-in-aid , is a very significant number in our budget from $7. 5 million to $13 .4 . You know, there' s a very, very hefty jump. And to predict in January what we' re going to actually receive and prepare Council , you know, prepare a budget using an estimated grant number, would be to me. . . it could be done certainly, but it would be. . . I shouldn' t say. . . meaningless , but it ' s gonna change a great deal by the time we submit the budget to Council in. . . on May 1st. JUVIK: Yeah. Well , I . . . first of all , I apologize. I didn' t mean to imply. . . I know you' re working on the budget all year long. But I guess the point was , is there any possible way to involve more public input during the formative development stage when some of these issues and priorities and so forth are being debated and factored into the proposed budget. I guess that was my concern. BETHEA: Let me ask a follow-up question on that . The budget is submitted within ten days after the Legislature. And the Council has to adopt it before the 30th day of June. So I suppose there has to be a real (inaudible) Council activity before that ; I 'm not sure what your timing is . So there really isn' t very much time. Would it be beneficial if there were a different fiscal year for example, instead of June 30th, so that you had another month to play with the. . .would that be a public benefit? MIZUNO: I think one comment I should make here is we are the last to submit our budgets to Council . I 'm referring to the different counties . And Maui submits it . . .has submitted it probably a month ago. And Oahu submitted theirs I believe in February. In the case of Maui , they had submitted a budget to Council using $7. 5 million as their grant . And they' re 264 ending up at $16 million plus in their budget . Now from a. . . I don' t know what they' re gonna do now. How are they going to adjust their budget? I mean, obviously they' re gonna have to have some sort of ordinance to make up this difference of , you know, $9 million dollars or so. I mean, how are they going to spend it all? Do they squirrel it away? Or , who makes that decision? Would it be the administration first submitting this . . . the use of the funds , allocation? Would it be council ' s prerogative? I don' t know. BETHEA: Uh-huh. But why I was approaching the problem from the other end , was that as long as the state Legislature is granting the counties money, it ' s almost futile to do a lot of planning before you know what you' re gonna get. And here we are, ended up better in this County than we thought we were going to. And Maui ended up a lot better than it had any reason to believe. Well that ' s . . . considering that they have both Ways and Means and House Finance. . . MIZUNO: That helps . BETHEA: . . .maybe they' re (inaudible) anticipate that , but I 'm just suggesting that maybe we should wait . But what is the magic about having a June 30th fiscal year? Could we postpone the fiscal year and it would give everybody more of a chance to come up with a more realistic budget considering they now know what has been available from the Legislature? GREENWELL: Jim, I don' t think you' re gonna have much of a problem in using the money up because it ' s probably already been designated for specific items , isn' t it? By the time the Legislature determines what that extra money is gonna be for. So it ' s really not going to change the County (inaudible) . MIZUNO: No, the grants-in-aid are to be determined . . . the use of it is determined by each individual county, not by the Legislature. GREENWELL: Oh, it ' s just open? MIZUNO: Oh, yes sir. GREENWELL: Oh. I 'm sure we can find a way, can' t we? BETHEA: No, but you see, you (inaudible) . My point is you get a different situation. This County came up a little bit short. A million three or something is what they wanted. Maui county came $9 million over. So somebody has to take action to either increase Maui ' s expenditures or squirrel it away or reduce property taxes. As long as the 265 Legislature is part of the process , and counties don' t have individual taxing authority, such as a general excise tax, piggyback taxing authority, or some other power to raise its revenues to carry out its function, it seems to me logical that the budget process . . . there ' s gonna be certain standard things , but that the budget process is gonna to have to await legislative action to some degree. That being the case, and the Legislature finishing when it does at the end of April , would it be. . . is there anything wrong in having a different fiscal year that starts later which would then provide for greater public input or more time for the administration and more time for the Council to do it? Would that be possible? Is there a problem, I mean, with saying, well we ' re going to make a fiscal year July 30th. Does that generate any accounting problems or . . . MIZUNO: Not that I 'm aware of. BETHEA: Uh-huh. Well , but I ask you to think about that and see whether or it you think it would be easier. And then again, subject to interruptions , let me ask a few more questions . L'ORANGE: Mr. Chairman, before you get on. . . out of that , I think that one problem is the state fiscal year is June 30th. You know, if the County has a different fiscal year and you' re using state funds , I think there may be a problem. I know there are problems with stuff in the federal government because the federal fiscal year is September 30, which doesn' t match with the state or the county' s . So I 'm not sure that your solution solves the budget problem but it may create other problems for the. . . MIZUNO: Yes , and you' re right , it does create a little bit of a problem with our federal grants because of the different fiscal years . But we do get around it. BETHEA: Well , Mr. L 'Orange may have a very good thought about the problem. Perhaps you could take a look at it and see whether you think. . . to what degree there is a problem. MIZUNO: I will . BETHEA: Let me go on, because as I have said, the way I 've seen this thing structured, it doesn' t look like. . .maybe we need to change it. I 'm not taking a position on it. It doesn' t look like the type of a setup that expects the County Council to get into the details that they have been getting in and trying to administer funds that they appropriated. 266 Another example on this , and I ' d like your comments on, is that Section 10 . 9 very clearly says that the mayor at any time during the fiscal year can transfer part of. . . or all of any unencumbered appropriation balance between classifica- tions of expenditures or programs within an agency or executive committee. So again that would tie in with these earlier provisions that I talked about , that this document at least contemplates a broader range of administrative authority than has been currently exercised because of the County Council willingness to get into all of the details of the budget . And I see that final statement as possibly a conflict between Section 10. 11 , the initial statement which, on page 20 says , "No payment shall be authorized or made and no obligation incurred against the county except in accordance with appropriations duly made. " Now it seems to me obvious that 10. 9 is an exception to that rule. Is that clear to you or maybe I don' t understand what the flap is about? MIZUNO: This transfer problem has been a problem since the past administration, I know, and it I believe it ' s still a problem. We' re still grappling with this and we ' re trying to get Corp Counsel to get . . . issue new rules and new opinions as to the legalities of transfers . I do see this 10 . 11 as a conflict . I believe the problem is that because the budget process is now gone down into the detailed level of budgeting, and that ' s the. . . that ' s what ' s been appro- priated, and the transfers , although they may be legal to make transfers , the appropriation amount was established by Council. It does not restrict transfers. However , the standing of the bonds must be in accordance with that which has been appropriated by Council . And I . . . BETHEA: See if I understand this then. Maybe this is the problem, because I think it ' s one of the functions of this committee to try to. . . this commission, if possible, to try to clear up confusion. What may be happening now is that the Council is getting down to such narrow appro- priations that it raises a conflict as to whether or not the mayor can make transfers between classifications of expendi- tures or programs within an agency. So that in other words you' re saying, that when you get down to these very specific line-by-line appropriations , then maybe that ' s what makes a conflict. MIZUNO: That ' s the cloud. CUSHNIE: Mr. Chairman? BETHEA: Yes. CUSHNIE: If I may just. . . I . . . it seems to me that the key word here is unencumbered. If an appropriation is made 267 but not completely expended--for instance, if there is an appropriation made to build a $100, 000 police facility and it is built for $75 , 000 , that may leave $25 , 000 unencumbered temporarily--it is my understanding that these are the only funds that the mayor has the privilege to move or transfer. Because every appropriation has to be duly certified by the Director of Finance as having monies available. Am I correct , Mr. Mizuno? MIZUNO: That ' s correct . CUSHNIE: It ' s only and after the fact once the appropriation has been filled to its complete extent , that money is then unencumbered . BETHEA: Well , let ' s say you saved some money on one item, but you want to use it for overtime. Right? Isn' t that the kind of an issue that comes up and you get back to who ' s to make that decision, the Council or the mayor? Is that it? MIZUNO: That ' s right. According to the Charter , if you read the section on transfers , it allows the mayor to authorize these transfers . For instance the $25 , 000 unencumbered would be transferred to salaries and wages as long as it ' s within the same agency. The cloud is that the appropriation was made for the equipment and not for salaries and wages . CUSHNIE: I understand that. I was trying to pinpoint the meaning of unencumbered , in that it is then free. It ' s not as if we' re robbing from Peter to pay Paul . I don' t see it as that , as being completely detrimental. But I sit back and listen. BETHEA: Well , I understand what you mean. What I 'm suggesting is that there' s a lot of unnecessary conflicts that are unproductive. When the Charter isn' t clear and you get the County Council squabbling about , gee you can' t do this and the administration saying, well don' t I have any- thing to administer? Remember I gave you the fuel tax example where everybody got the community to try to get the Council the authority to increase fuel tax to try to repair the roads and then there was a dispute about where it ' s gonna be spent. And as Mr. Greenwell suggests , well they don' t trust the administration to expend it. And at the same time, you see the Council people from their particular district saying, well geez , whether I 've got the biggest need or not I want the money to spend from that . You know, you get that kind of squabbles . I 'm not suggesting which way it goes. 268 But I point this out , at least to me, it ' s something that the committee at some stage (inaudible) . DUNCAN: Mr. Mizuno, you 've had experience in private industry and then you've also had experience now with the County government . What in your view would be the most efficient way to clarify the language and to clarify this conflict between Council and administration? If you were to be just looking at the most efficient means of government operating, if it were just your say? MIZUNO: I think the Charter language needs to be tightened up. I think the intent of the Charter is very good. But I think the language needs to be tightened up. The adminis . . . the budgeting process is much too detailed. It needs to be brought up to a summary level type of budgeting process . Administration needs to have. . .needs to be allowed the flexibility to make these internal transfers without a lot of static from anybody or have questions raised, but not oppose any kind of transfers which are justified because you ' re running out of funds . DUNCAN: Well , did he agree that perhaps there should be a set percentage over budget that would then compel the mayor to go to Council? I mean, how do you simplify the problem? MIZUNO: The problem with using percentages is that you know $10 over $100 appropriation is 10%. And $50 over $100 appropriation is , you know, a very huge percentage. And if you limited it to, you know, 15% let ' s say, I don' t think that would accomplish what we want. Perhaps using a combination of percent and dollar amount , such as what we suggested as far as the contracts . I think my recommendations regarding the purchasing. We set certain dollar limits which would I think would alleviate a lot of (tape change; lost some transcription) . DUNCAN: Well , our concern is , I guess , efficient government that best serves the general public and the people, about a budget being projected to perhaps a lot of squabbling at the public ' s expense. Would you be able to suggest language specifically for 10 . 9 and 10 . 11 that might alleviate these continuing potential conflicts? MIZUNO: I will certainly try. BETHEA: Thank you. That ' s a very good suggestion. CUSHNIE: Mr. Chairman, may I add to that some specific wording to also ask Mr. Mizuno to respond to? Section 10. 3 , page 18 , at the top, No. (4) . It seems that we' re going from the summarized statement to specific detail because No. 269 (4) says , "Such other information as the council or mayor may request . " And I know that the Council has requested line-item information. So I would like Mr. Mizuno to please respond to a verification of that . Section 10. 5 , Operating Budget : Council Action. BETHEA: Yes , I 'm sorry, what was that? CUSHNIE: Section 10. 5 . . . BETHEA: Okay.` CUSHNIE: . . .Operating Budget: Council Action, "The council shall adopt the operating budget on or before the thirtieth" of June. "If it fails to do so, " etcetera. This refers back to the problem that I believe arose this past year . The mayor made changes ; the Council did not have time to act on it before June 30th. There was not enough time for the hearings . And this had to be sent to Corp. Counsel for determination. I would ask Mr. Mizuno to investigate that and see if he might want to clear up the language there. Because if the mayor holds the changes until it ' s too late for public hearings , the Council is then forced to adopt the mayor ' s budget . I think that ' s really difficult to ( inaudible) . And the last again would be Section 10. 6 , No. (3 ) . Again the notation, "Such other information as the council or mayor may request. " BETHEA: (b) (3 )? CUSHNIE: Yes. So we are leaving it open, this wording for specific inquiry. BETHEA: That ' s right. CUSHNIE: Thank you. BETHEA: Okay. Well , just another quick. . . I am trying to understand this. What ' s the difference between an allot- ment and an appropriation? MIZUNO: An appropriation would be such as our capital budget program, where we come up with a list of projects and the Council will appropriate funds to these projects. Allotment will be for the administration to say, yes , we ' re going to begin and move such funds , and allot funds to that project . The appropriation does not create funds ; it creates a project. Allotment creates the funds . BETHEA: Okay. The way it ' s used in Section 10. 11 which says , "nor shall any obigation be incurred against any 270 allotment or appropriation unless the agency head first verifies that there ' s sufficient unencumbered balance in the allotment or appropriation and that sufficient funds therefrom will be available to meet the. . . " Does that . . . is that what you. . .does that make sense? MIZUNO: Yes , that ' s correct. BETHEA: Okay. Alright . L'ORANGE: Mr. Chairman? BETHEA: Yes. L'ORANGE: We 've made requests of the Finance Director for specific suggestions on language. I would like to suggest that when we contact the County Council for their input that we mention to them that we have made this request of the Finance Director and ask them if they would care to comment on the. . .those items , as well as anything else they want to comment on. I mean. . . BETHEA: Absolutely. L'ORANGE: I think they' re, you know, desire is to make it as smooth as possible, you know, I think by getting the thoughts from both sides , maybe we can help them out . CUSHNIE: And may I add to that list also the Council ' s (inaudible) of our biannual budget . BETHEA: Let me just . . .a few more. Yeah, I understand your suggestion with respect to item (c) on page 21 , "All purchases and contracts for materials , supplies , equipment and services shall be made by advertising, except that such purchases and contracts may be negotiated without advertising if: " Now, do you read all of those things in the alternative as if there were an or after each one of them, any one of those conditions is sufficient? MIZUNO: Yes . BETHEA: Okay. So it should be, or? And what your suggestion is that . . . I think it ' s the same suggestion that Hugh Ono made to the commission that the $4 , 000 figure be whatever is specified in Chapter 103? MIZUNO: Yes . BETHEA: Okay. POPPE: Excuse me (inaudible. ) 271 MIZUNO: Which happens to be. . . the same amount at this point. It ' s $4 , 000 in Hawaii Revised Statute, 103 . But there is the chance that it ' s gonna be increased. POPPE: So what you' re suggesting is that we would just link it to 103 . Whatever 103 is , it would automatically (inaudible) in? MIZUNO: Yes. BETHEA: You also make a comment to. . .on Section 10. 14 (c) (4) , which has to do with standardized. . .procurement of standardized items. We've never had a formal policy on how to determine when this section applies , or who may make the determination. Should it be a discretion of the Director of Finance? That ' s one of the reasons for, you know, filling it on a non-competitive basis , right? What is your recommendation? MIZUNO: We have created. . . the Charter creates a standardization committee. BETHEA: Yeah. MIZUNO: And I think that would be a good place to link up this . . . this problem. I mean, have the standardization committee make that determination. BETHEA: Yeah, that ' s also on page 21 , I believe. . . MIZUNO-: Right . BETHEA: . . . Section 10. MIZUNO: 10. 14 (b) . BETHEA: Yeah. So again, your suggestion is that this could be done by the standardization committee? MIZUNO: Approval could be given by them. BETHEA: Okay. I had another question relative to your discussion about computers and the need perhaps even to create another department . Could this also be a function of the standardization committee? What you' re talking about? In item 4. of your submission of April 21st? MIZUNO: How we handle this problem right now is we have created a data processing committee which is made up of all the major user departments and chaired by the managing director. And we as a group would set the priorities and approve all equipment purchases and lay the foundation for 272 the direction of the Data Processing Department . . . or division. That ' s what we ' re doing now. This is Mayor Akana ' s administration and I think the danger is if we did not have this committee and it was totally up to the Finance Director to determine the priorities on the computer department . I think this is what Mr. Greenwell was referring to. And I think that ' s . . . I mean it ' s really nice for the Finance Department because we get to have all that we want . The problem is , nobody else gets their . . . their jobs done. Right. That ' s an extreme. They do get their jobs done, but I think there would be better . . .a fairer allocation of resources by having it under. . .administra- tively under a different group. GREENWELL: The department exists but it isn' t been utilized. There is a section that is . . .a computer section now, but it isn' t properly. . . it isn' t being properly utilized. BETHEA: The computer section is. . . GREENWELL: What they' re trying to do is make it necessary. . . be the obligation of each department to utilize this department . . . this section. It exists now but in the last administration, it wasn' t utilized. BETHEA: What was that? GREENWELL : Why? BETHEA: I mean, what was it? What section? GREENWELL: It ' s in the department . . . in the Finance Department . . . in the depart . . . MIZUNO: Division. GREENWELL: . . .division, a computer division. And the intent originally was that this would be utilized by the whole County and each County. . .and each department now has its sort of own little kuliana. They' re not utilizing this property. BETHEA: You know, this might be a perfect job for our committee counsel to explore with the Finance Officer how this might be spelled out in a Charter if the commission members agree, because you' re talking about , you know, a full line department to look into this type of thing and I think we'd need to see the language on something like that , so I think we ' d have to have somebody try to run that down. GREENWELL: I wonder if Mr. Mizuno has any ideas of his own that he' d like to (inaudible)? 273 MIZUNO: Why is that? Some of the suggestions that I had was . . . I had mixed emotions about creating a new department. GREENWELL: Leave it where it is. MIZUNO: I . . .you could leave it where it is or you could move it under the mayor ' s office, which creates then another problem because administratively he' s got one more thing to worry about . You can leave it where it is under Finance but create this data processing review committee such as the standardization committee. That might be a possible solution. You know, write it into the Charter that directions shall be set by this data processing steering committee made up of. . . BETHEA: Is there a. . .on that particular issue, is there a feeling among the committee that that might be a pretty good approach? If there are no objections to this , Miss Jacobs , could you, when we get a (inaudible) Council , I ' d like to get that particular concept assigned and something coming back on it. Because it would probably . . . I think that ' s something we can probably all agree upon. The need for that as Mr. Greenwell points out could be some methodology for handling that . I 've got one more. . . L'ORANGE: (Inaudible. ) I 'm not sure we want to put the Council on that yet , from the standpoint that lots of management schemes as to how we want to work that. I think we have to have a little more agreement on how the thing is going to work before we can put ' em on language, because if you look at the state goverment , the state government is a bloody mess with their computer programs. They have all kinds of things that don' t match and. . . I think we don' t need that . And there' s a tendency for salesmen to sell equipment to departments and make the pitch to the department that this is the best , and the department buys it because this is really what we need, and then you have a whole government set up with computers that are not compatible and they don' t service. . . so I think we have to get a conceptually, what we're thinking of. And then I agree with you, then we ask the person to create the (inaudible) . BETHEA: Well , I was really saying. . . in his paper he had suggested like a full line department . And then Mr. Greenwell had pointed out that there ' s already a division in existence in the Finance Department . And then I think the suggestion had been from Mr. Mizuno that perhaps at least the Charter could set out that this committee would form the guidelines for the selection of this type of equipment. And 274 I don' t know, it sounded. . .when he said it , it sounded like a pretty solid thing that tied in with what Mr . Greenwell said. I just thought it might be worth looking into without trying to, you know, pin us down, but so that we could get some idea of what language might be appropriate and then we can consider. whether or not we think it ' s a good idea. That ' s all. One final thing, contracts. You suggest Section 13 . 13 be changed. And I think again we would like some language suggestions as to how you think that might work. And incidentally for the benefit of the commission, I received some written comments from Millicent Kim, who ' s had a great deal of experience in government at all levels , on that particular topic. And I will get that circulated, and I have it somewhere, on a proposed change to Section 13 . 13 . And another one that I forget what , but I ' ll get that circulated if you can remind me right after the meeting to get that going. But maybe you can give us something on that as well . MIZUNO: Sure. BETHEA: Let me just see if I 'm. . . POPPE: I have a clarification, how are they (inaudible) this item on the computers? Are we leaving it that our counsel will come up with a suggestion per what Mr . Mizuno has written down? Is that what we ' re saying? I mean, I 'm back (inaudible) suggestion and I don' t think it ' s the Council ' s position to come up with how this should work. So I think we need to give him direction that we would like to see a certain structure or maybe we can get that structure from Mr. Mizuno. But I 'm a little hesitant also towards saying here, go write up something. BETHEA: Well , I meant for somebody. . .and perhaps that ' s not necessary. . . somebody can be you, to express that concept in writing. The committee concept; it wasn' t a full-line department. But a review committee that at least some clearance was required from. L'ORANGE: Well , I think the problem is computer . . . the word computer is too broad. Because you have computers that do engineering; you have computers that make maps; you have computers that do all kinds of things. I think Barry is talking about financial matters , personnel matters , data processing within the County. BETHEA: Good. L'ORANGE: Right? 275 MIZUNO: Uh-huh. Sure. . . L'ORANGE: So that ' s what I 'm talking about . When you say computers , I get worried. BETHEA: Yeah. Okay. Alright. I didn' t mean to be broad. That type of data processing information system so that you don' t get a lot of systems that don' t mesh one with the other. MIZUNO: I guess the bottom line is we need to control the direction that we ' re headed as far as the County' s concerned, then computerizing the different departments . We need control . And I think what we've established now works. I think that the data processing committee which was created by this administration to ( inaudible) I think is doing a very good job at controlling and setting direction. But my problem is that in a lot of cases , the damage has already been done. And to correct it will be almost impossible at this stage for it would be very expensive to do. What I wanna do. . .my statement really pertains to controling the future, I mean, and less on correcting some of these problems in the past . I think it would just be too expensive to correct all our problems . POPPE: Well , may I suggest that we can also impose on you to get us at least a conceptual thing, perhaps based on what you ' re doing now for consideration? MIZUNO: I ' ll put it in writing. JUVIK: Excuse me, just to follow up. Do you think maybe that . . . this is really an area the Charter has to get into? I mean, for example, I know in the area of computers , technology is changing so rapidly, and we only review the Charter every ten years. Maybe. . . I think these suggestions are obviously are good ones . I 'm just wondering whether maybe the Charter ' s getting too detailed for a direct . . .you know, internal committees within the administration or so on that may be necessary to solve some computer problems may develop one year and disappear later . You know, I 'm just pointing that out as sort of the devil ' s advocate. Maybe we don' t really need to get that detailed in the Charter. Whether a body, Council , or administrative activity they want to develop some response to computerization and so forth. Obviously, if you can save the taxpayer money, this is good and efficient . But I 'm not sure. . . I 'm just not sure that necessarily has to be spelled out in a great deal in the Charter . POPPE: I must admit prior to my comments , I was thinking the same thing. Do we really want to get into this? Is it possible that you even broaden it , and maybe 276 this is covered to kind of have something saying. . . directed at the efficiency of the County, and I 'm not sure what it would be, if computers is (inaudible) departments or. . .and I 'm not sure (inaudible) . GREENWELL: That ' s why it should be in the Charter. BETHEA: Well , I think it should be, if I can argue that. I think his point is that it ' s so important that it ' s just gonna get out of control . And although we' re not as big as Honolulu, he made the point that there is , and I presume this is authorized and set up by Charter , a department within the city and county. . .within the govern- ment of the city and county who is responsible for this exact thing. Isn' t that your point? MIZUNO: Yes. BETHEA: So, you know, how detailed we get I think is a question, but it ' s a valid question. JUVIK: Let me raise that , Mr. (inaudible) . I know at the unvierstity, part of the problem' s been that the technological advances of computers may be so far from its own that it ' s in some way easy for individual units to get into their own computers for their own specific uses . And what the university has done of course is develop. . . they have a committee that essentially acts on whether you can buy a piece of computer equipment , and asks questions like will it talk to the rest of the computers in order to. . . in our other instutition and so forth. And I don' t have any problem with that . I was just reflecting on the fact that things are changing so radically that I wasn' t quite sure how this would be accommodated. But I understand. . . the point is that there are whole administrative structures being accommodated through data analysis. . . through data handling of the departments , or computer departments and so forth. And I realize you have to address that. I was just expressing that. POPPE: I guess philosophically. . . or what I boil it down to is originally, a lot of not just the County' s but business and everything else. . . it probably started out with each department or what have you doing its own purchasing. And then when things got big enough, they realized, well for control , you have to do central purchasing. So then you get into it by thinking that by computers are along the same line, it started out small and everybody said well . . . let ' s . . . this department needs this but then it starts mushrooming and you say wow, this is going to be a major deal now. 277 JUVIK: So the computers started out big and expensive and they tended to be used by everybody. And then they got small and inexpensive and everybody started buying their own. I 'm just making that observation. BETHEA: Okay, well. DUNCAN: Mr. Chairman? BETHEA: Yes. DUNCAN: I am also concerned about the action of writing anything relating to computers into the Charter. Mr. Mizuno, don' t you feel that you already have that responsibility under the current Charter, since you are in charge of centralized purchasing of any equipment? Aren' t you already given some control over what ' s purchased , I mean, with computers? MIZUNO: Yes . There is some control. However, the. . .to give you an example, a good example of this problem would be in the area of the Prosecutor ' s Office. The Prosecuting Attorney' s Office does have a very good system, a very elaborate system and I think they went into that system because of the need. . . the perceived need of them to get their own system because they were unable to get the support out of the data processing department . So they merely decided to ask the state for funds. You know, these are funding from the state. And they have built their own computer system within one entity. And it can be dangerous if it ' s not controlled. I 'm not saying it doesn' t work. You know, it ' s just not , you know. . . the danger is that you have non-computer people trying to design a system for a particular division and it should be left to the professionals I believe. Something so very costly and so very important as your record maintenance. And the problem with us neophites is we think we know computers but we really don' t. We lack the expertise to properly document systems . We lack the discipline to do backups on a. daily basis. And if there is some sort of mishap, the chance of , you know, the chance of losing your information system is just . . . I hate to think of what would happen if the County ever lost its data that ' s on our computer. And this is the reason why we have professionals running that system, that require the discipline. CUSHNIE: Mr. Chairman, if I may. I too hesitate to get into specific language about computers; my feeling is that we can do it in a general way. If a major department has put in an appropriation or request for a certain amount of money, they have specified what it ' s for. So aren' t you and the Council and the mayor probably aware of these internal computer systems being set up? 278 I 'd like to look at Section 10-2 , I 'm sorry, 10-12 on page 20. It enables the mayor and the Council to "establish special funds as may be necessary for the proper and efficient segregation of fiscal operations of the county. " What if we added next to segregation, integration of fiscal operations? And left it up to the mayor and the Council as to how they want to grapple with an overview? BETHEA: You know what? Quite frankly, I don' t know what that provision is. I have no idea. CUSHNIE: I know. Well , I know the mayor is . . . BETHEA: I have one of the questions there. Upon recommendation of the mayor , is this like the special fund that the Council created because they wanted to be. . . they want to also administer funds? Didn' t they do that the last year or so? They had some special fund? You know, I don' t know if this is . . .maybe we can discuss this later. But I think the point is that Mr. Mizuno is saying in his experience, the County has already made serious mistakes in going willy-nilly about the computer system on a departmental level so they don' t really know what they' re doing. And his idea is that it needs somewhere. . . there should be some sort of a quality control system. And it hasn' t been in place before, or at least it didn' t work. And he' s making the suggestion that maybe there at least should be some little reference in the Charter or not . I don' t know. GREENWELL: It ' s there. But it hasn' t been utilized. That ' s . . . BETHEA: The question or not whether we want to mandate anything. In other words , that we want to mandate some or any. . . or mandated these piece of (inaudible) committee or some (inaudible) . But following up on that , I have not the foggiest idea what that means? Do you, Mr. Mizuno? MIZUNO: No. BETHEA: Does anybody know? "Special Funds. Upon recommendation of the mayor , " does that mean he has to recommend? The County can' t do it without a recommendation. " . . . the Council may by ordinance abolish or establish such special funds as may be necessary" and proper . . . "for the proper and efficient segregation of fiscal operations of the county. " Now wasn' t there some legislative fund that was created by the Council in the last couple of years that the Council was going to administer? INOUYE: Contingency funds . 279 BETHEA: Contingency funds? Is that a special fund? INOUYE: You need to find an area to appro. . .to put some money in if you' re going to amend the budget , if you ' re going to take out some funding from a program in a department and you need to put it somewhere. A creation of a fund has . . .you have to put that money somewhere if you don' t want to expand it . BENNETT: What do you mean, like a bond fund, highway fund, sewer fund , general fund? INOUYE: Let ' s see if we want to save 10 . . . let ' s see our recommendation comes out from our Finance Committee for instance, I ' d say. For instance, let ' s say $1 million dollars this fiscal year. But you gotta go put that million dollars somewhere. So you can create a special fund. That ' s how I would read it. Because you need to balance your budget. POPPE: Presumably, this clause was put in at some point . . . INOUYE: I don' t know. POPPE: . . .and not in the last couple of years for contingency. Because the Charter obviously was done longer ago than that . May I ask that we review the discussion of the last Charter Commission and see if that ' s when it was put in and, if so, what the discussion was? UNKNOWNN: That would be an excellent job for the counsel. BETHEA: Right . Because I did read this . I 've got it written down that I didn' t know what it meant . Except that I can remember the Council appropriated something, but then they also wanted to administer it . You know, say how the funds were being spent ; do the administrative part of it . That was my recollection. But . . .well , we 've taken a lot of time on a very important topic. Are there other questions or observations from the commission members? What we will do at this time then. . . thank you very kindly for your presentation. We' ll very much appreciate it if you will follow through in writing as we. . . commission members have suggested with four specific subjects about this very important topic (inaudible) (Break) 280 VI . DEPARTMENT OF RESEARCH & DEVELOPMENT OPERATIONS By Lynn Maunakea (Verbatim begins) BETHEA: Thank you very kindly for appearing before us today. MAUNAKEA: My pleasure. I 'm sorry that my papers were a little late in getting to you. I couldn' t get them to you in advance. I hope you had enough time to at least skim them over. BETHEA: Well , I didn' t . Perhaps . . .would the committee like Ms. Maunakea to just briefly summarize? Alright , let ' s do that , because I didn' t read it. MAUNAKEA: What I . . . thanks for this opportunity to try and explain the Department of Research & Development that I 'm still trying to come to know and . . .what I 've tried to do in this paper was first of all summarize what the Charter does say about the department. I did a little bit of research through the annual reports from 1968 trying to get a sense for myself of why the Charter might have said what it did at that time. Tried to get an idea of what Research & Development was about then and how it ' s evolved. So, I 've talked about that through. . .from 1968 through the ' 60 ' s . . . through the end of the ' 60s , the ' 70 ' s and into the present. And essentially, a difference that was readily apparent to me was at one time there must not have been a Housing Agency because Research & Development was responsible for some of the housing projects . In addition to that , a. . .Campbell Sewer and Kalapana Water System project . . . 1 think things like that are reflected in, for example, item (c) as stated in the County Charter , that Research & Development is responsible for coordinating "informational and regulatory knowledge of all federal and state grant-in -aid participation programs which affect the county. " It ' s kind of evolved out of that one in particular. From a discussion of the history, as I 've stated , I 've mentioned that we evolved into the 1980 ' s with essentially five major areas of responsibility, and these five areas remain today. The areas are tourism promotion programs , agriculture research and market promotion, new industry and industry development , special events and activities and data collection and information center. Then gone ahead and listed for your information my goals and objectives for the department . They remain in those five areas. The goals really haven' t changed. It ' s the objectives , how I intend 281 to go about doing it and my emphasis I think is a little different at least in a couple areas than my predecessor. The areas where it ' s different right now are in agriculture and in new industry development , specifically film industry. BETHEA: How are they different? MAUNAKEA: How are they different? I am putting more money into product promotion, agricultural product promotion, emphasizing that more, because I think that will help sell the County and encourage economic development . And that was done to a very small degree actually in terms of the budget size previously. And also from industry, I 'm paying more attention to the amount in the budget directed to film industry because I also think that that ' s a nice clean way of selling the County. . . in a nice way, I mean. Then I talk about our personnel , the number of staff we have in the department . Besides myself , a deputy director , a private secretary. We also have one economist . Then there was a position that has been vacant , the agricultural specialist , was vacant . That position was vacant since 1987 . And prior to my appointment , the position had been reclassified as an economic development specialist III. I was interested in having some kind of ag experience in my department and therefore when I hired, and this has just been done last week, a person for this position, the person has an ag background. So we finally have this position filled . But prior to that there was the economist , a resource materials specialist , an accountant clerk and then another gentlemen on contract although he'd been on contract for about 10 years , we' re finally trying to make that a permanent position. And this position is essentially. . .have essentially been in tourism promotion and special events. I 'm now having that person specialize also in the film industry and tourism promotion. Those are essentially the positions in the department . I then thought it would be interesting just to approve brief synopses of our budgets over the past five years to give you an idea of what ' s happened to the. . . it doesn' t look like. . . they haven' t stapled mine in order. I hope yours are. But it should begin with the ' 69- ' 70 budget which, for me, is on the second last page. The $79 , 000 budget , it should be followed by the ' 75 budget which is on the last page, which is at $381 , 551 , to the ' 79- ' 80 at $443 , 139 and the ' 84- ' 85 at $672 , 949 and then back down in ' 88- ' 89 to $512 , 467. There was a pretty drastic cut that I 've talked about . I think it was in 1987 of $300 , 000, about half the budget was cut from R&D' s budget . Half the money was cut from R&D' s budget , and I believe that went to Hawaii Visitor Bureau to do. . .directly do the tourism promotion. 282 POPPE: Lynn, I noticed. . .actually I 'm a little. . . I was a little surprised in reading what the Charter actually says. My concept of your department (inaudible) basically be. . . as I think a lot of people are. I think a. and c. to me are extremely important , although certainly a. is very broad , do you see looking toward these directions a little more. MAUNAKEA: a. to me has to do with the study, research function of the department . I think it ' s broad enough. I think it ' s accurate. I 'm not particularly interested in changing that particular statement. POPPE: No, I 'm not . . . I 'm not particularly saying let ' s change it , but when you link that back in to for instance your budgets , your goals and everything else. To me, for instance, one of the things I read in that is develop data necessary for legislative decision-making. Well then I could see that Council perhaps might say we have particular interest in whatever it is , tell us about it . Now when I look at your budgets and your goals and objectives , obviously that ' s not something you can really say, well anticipate, they' re going to ask. And I don' t see anything you can put towards there, and I can see that that may be a very useful tool for the Council . MAUNAKEA: Are you referring to having R&D do the work itself , that there isn' t money in the budget to have R&D do that kind of scope of work? I 'm sorry. . . POPPE: I 'm not sure I 'm going in a particular direction besides this conceptually. In other words , "Collect and develop data necessary for. . . legislative decision-making. " Do you do any of that now? If so , it ' s not really reflected in these budgets . MAUNAKEA: Oh, I see. Okay. This allows us the opportunity to do that if needed. To be able to conduct such a study for legislative decision-making or managerial decision-making. For example, if we were asked to study what the impact would be on the sugar industry closing, we would have the jurisdiction to go ahead and do that kind of a study which could then influence legislative decision- making or policies within the County. POPPE: And I guess where I 'm going, and the next question is , and I 'm not aware in one way or the other , it seems to me this would be a useful tool for the Council (inaudible) some reason it ' s used or not used. BETHEA: Excuse me ( inaudible) . 283 GREENWELL: One of the biggest criticisms of the department by the Council and by the Board of Supervisors prior to the Council , was that all they' re doing down there is coming out with that information out of different magazines and putting it together. And that seemed to both parties just an absolute waste of time. I can see if there was an interest in some special sugar industry and you were asked to come up with a report on it . Then that makes sense. But I don' t think we ask that very often. . . or anything like that . MAUNAKEA: And frankly there is not the staff capability in the department to do it for everything. . . GREENWELL: Right. MAUNAKEA: . . . that comes along unless a specific project is requested. GREENWELL: Originally, everybody had (inaudible) . All they' re doing down there is cutting and snipping things out of the newspapers and putting them together . It seemed like an awfully expensive job to have someone down there who was just doing that with (inaudible) . I know this from way back when we first started . Excuse me (inaudible) . MAUNAKEA: Excuse me. At one time I understand there were plenty staff, if you will , associated with Research & Development. They were (inaudible) staff and so they were perhaps . . .perhaps this is the time that you were. . . GREENWELL: No. (Inaudible. ) MAUNAKEA: . . . talking about? Okay. GREENWELL: That was good, because it teaches some people how (inaudible) . JUVIK: Just to follow up on that research responsi- bility within your department , for a number of years the department did put out a Big Island data book. Now whether this was just simply cutting and pasting data. . . GREENWELL: Yeah. JUVIK: . . .which some people argued. On the other hand if it . . . if it were extended. . . represented the organization ( inaudible) commission could be used. Obviously, (inaudible) . But there are a large number of areas for example, there ' s been complaints about the federal census , that the data from the federal census is now much more difficult to access because of the cost cutting into the federal level . . . 284 a lot of the data in the censes are difficult to access and so forth. And I think that there really is some useful research areas that the. . .your department could be involved in. To the extent that your own staff can do this or whether this has to be contracted out is a. . .you know, whether you can study the sugar industry or something may have to be contracted out to consultants or whatever. And then the argument comes out , well , why do we need this department then? Why can' t the Council just contract with somebody and save the money? But I 've. . . in the area of research, one of the criticisms I 've heard of . . . of the departments is there should be grant writing going on just 24 hours a day in that department . They should be writing federal grants , state grants , all kind of grant applications. In some way, to evaluate the productivity of that department , is how much money they bring in for various kinds of prototype design things or new projects and so on and so forth. So I think that there is a role for research in that department . I 'm not sure it ' s been clarified in any of the administrations or either ( inaudible) exactly where it should go, but it certainly should be thought about I think. Because there' s a lot of data that needs to be continually updated . I mean, we know how many telephones . . .private telephones were hooked up in the last six months on this island , so that ' s an idea. Subtle changes in growth and shorter periods ( inaudible) years and so forth. I mean your department should be on top of that and have information. But I realize you can' t do it with one or two people. BETHEA: Is the grant writing being done out of the mayor ' s office now? MAUNAKEA: Some is being done from Research & Develop- ment if it pertains especially to one of our projects . If it ' s , for example, an EDA grant , Economic Development Agency grant , that would apply to the economic enterprise zones. That would be through our department . So if we can write a grant that is related to say one of our goals and objectives , we would be doing that . If the grant concerns Housing, no. The Housing Department has become specialized to the point where they now do that. If the grant relates to transportation, the Transportation Department now is specialized enough to the point where they do that . So it ' s been. . . everything' s been refined it seems to me since the Charter was originally written. POPPE: In your estimation. . .you, well . . . in the past number of years obviously there was quite a bunch of furor over your . . .your department . In your estimation, was this somewhat of a personality problem, or is there something in 285 the lines of the Charter that maybe could be clarified or amended to avoid this type of thing? MAUNAKEA: I think the nature of the Research & Development Department is such that the department can take on the characteristics . . . it reflects the personality of the person in the department. POPPE: So what you' re saying, it was more of a personality problem and not anything that we need to particularly look at? MAUNAKEA: I would say, yes , with the exception of perhaps c. That word "of" is just not accurate. We do not coordinate "informational and regulatory knowledge of all federal and state grant-in-aid participation programs which affect the County. " As I 've just said, the Housing and Community Development Department gets their CDBG monies. We have nothing to do with CDBG monies . The Transportation Department likewise would receive federal monies , and we have nothing to do with those monies . So just in order to keep things accurate, if you want to say that we' re respon- sible for coordinating some kind of informational resource materials for the County, that would be very accurate. Because we do that . Our resource information specialist is the person who goes around from department to department and who inputs and catalogs all of their information into the computer. That ' s misleading, I don' t mean all their information into the computer. Any of their. . . I don' t really know what she does for the other departments , what kind of information she ' s putting in. But a lot of their resource information she ' s cataloging into our li . . .County library system. And that isn' t spelled out any. . . BETHEA: What was that again? MAUNAKEA: We have an informational . . .her exact title is , resource material specialist. And she is not just a resource material specialist for the Department of Research & Development . She ' s a resource material specialist for the County. And she provides this service to all the departments and , I think, the offices in the County. So this is an overall function, a librarian if you will , function for the County. POPPE: So would you. . .are you saying you'd recommend changing c. completely to reflect this resource service rather than anything to do with federal and state grant-in- aids? Or kind of a mixed bag? MAUNAKEA: It could be a mixed bag. You could have. . . like if you want to mention, if you think it ' s important enough, because it is . . . it has been one of the 286 largest. . .a large function of our department to coordinate those materials . But in addition, the word "of" in item c. , that we coordinate all the federal and state grant-in-aid programs affecting the County, it ' s not true. POPPE: No, I can see that . But are we doing. . . is it . . . MAUNAKEA: I don' t know what the purpose of having it in there. I think there was a purpose a while back when we were taking care of all those grants . BETHEA: It just disappeared in the job (inaudible) . POPPE: Well , yeah, that ' s what I 'm getting at is this. . .has it completely disappeared in which case we delete it totally, or do we. . .do you do some federal grant and state grant-in-aid? MAUNAKEA: We do. POPPE: Some? MAUNAKEA: We do. But then again, are you. . .are you including it in the Charter for the other departments that do? I mean, for consistency' s sake, you might want to look at that. If you. . . if you' re going to include it in our department , you might want to also look at the other departments that are receiving money for federal monies; and just for consistency' s sake include it in theirs too. POPPE: That they should be alert and aware and ( inaudible) and taken. . . MAUNAKEA: Right . POPPE: . . .grants-in-aid or whatever. MAUNAKEA: Right. POPPE: Interesting point. Now would you also recommend that since one of your few staff people is this resource person, that perhaps this should be reflected in your Charter and. . . MAUNAKEA: I see it as an important function for the County that is not addressed by this . . .by the other two items unless you feel it ' s included in "Collect and develop data necessary for managerial and legislative decision-making"? BETHEA: Which it is . 287 POPPE: Yes. It could arguably be. MAUNAKEA: But not all of it is . It is also for the public. POPPE: That ' s right. So. . . MAUNAKEA: So, it is also, yeah, for the public, so it doesn' t fall under (a) in that case. BETHEA: She says , coordinate informational knowledge. What is informational knowledge? Sounds like it was written by a college (inaudible) . Perhaps a lawyer. GREENWELL: One of the criticisms in the past was that there was no relationship between the Department of Research & Development and the Chamber of Commerce and other business or agricultural operations . Do you have any sort of relationship now? MAUNAKEA: With the Chamber of Commerce and other organizations? I attend. . . I attend a lot of meetings for one thing. I would feel that one of the things that we have tried to do is to develop into being a lot more proactive with different groups. GREENWELL: I remember one time they were completely ignored. And also there. . . is there still a committee? MAUNAKEA: A committee? GREENWELL: A department committee appointed by the mayor? MAUNAKEA: For this department? GREENWELL: Yeah. MAUNAKEA: That ' s an interesting point. I noticed that in the. . . BETHEA: Sorry, I missed it , excuse me. What was it? JUVIK: Advisory committee or commission. MAUNAKEA: An advisory committee to the Department of Research & Development is actually set up in the penal code [County Code] and. . . BETHEA: The penal code? MAUNAKEA: The penal code. 288 BETHEA: Well that ' s (inaudible) . MAUNAKEA: And you know, it ' s totally by coincidence. I mean I was literally flipping through the penal code when I realized that there was supposed to be. . . or at least , set up in this penal code, there' s an advisory committee to the Department of Research & Development. And I asked the people in the department who had been there for a while. . . GREENWELI: None of them are old enough. MAUNAKEA: . . .and they've never. . .excuse me? GREENWELL: Well , this was one of the problems before. One of the committee appointed. . .and there were never meetings called. I don' t know. Art Herbst was the man. . .was the chairman of the committee and he was called once a year to come in and sign the report. Every. . . there was nothing happening on (inaudible) . MAUNAKEA: And it sounded to me like it dissolved in. . . that was it. L 'ORANGE: Mr. Chairman? BETHEA: Yeah. L'ORANGE: Yeah. I think in this department , we have to look at its need. . .you need a department like this to service the mayor. And I think that ' s why it ' s broad and general. And I think because certain directors have had problems with the Council or with individuals or with the community is neither here nor there. I think we have to leave the department in its broad general status to service p the mayor as staff on whatever matters come up to their report. Like alternate energy, geothermal. I 've sat on several committees that look at those particular things . And I think the question is whether there ' s something that ' s left out that should be spelled out , or we should just leave it like this and have it as staff for the mayor to do what he needs to do to help him administer. I think that ' s what it was put there for. BETHEA: I think. . .my own feeling is that the depart- ment has been criticized in part because it lacks form, and maybe necessarily lacks form. So it doesn' t have a specific goal that is broad and flexible. And then as . . .because it lacks form, and doesn' t have necessarily exact missions , then it ' s easy to take a swipe at it , well , as contrasted with somebody who has a specific job to do (inaudible) this people and this people. Things like that. But as you suggest , maybe you need a department that has rather a broad range kind of operating authority so that 289 it can be assigned a particular spot jobs as they come up. Although I noticed for example, and it is been. . . or it ' s been historically kind of the mayor ' s department, that this is one of the few of the departments that doesn' t contain that famous phrase, "The department shall come under the general supervision and control of the mayor. " Remember that ' s almost at the final sentence of every department? POPPE: Yeah, I was . . . I would ask (inaudible) . I 'm not sure when we would discuss it , but it has in fact operated as the mayor ' s department , that in reading (a) it could be argued that the mandate says it ' s equally the Council ' s department. And maybe that needs to be clarified. Or maybe we think it should be both (inaudible) schizophrenic, I 'm not sure. But it certainly should be discussed. Is it the mayor ' s tool , or the Council ' s tool or is it both? CUSHNIE: Along those lines if I may, Mr. Chairman. Ms . Maunakea, how do you differ from the Legislative Auditor ' s Office? MAUNAKEA: Well , at this point , I wouldn' t presume to speak for the Legislator . . .Legislative Auditor ' s Office. If you want me to ans . . . respond to you in terms of what we do in terms of legislative work. . . CUSHNIE: Along those lines , because (a) is so general and it seems to me the same description as the Legislative Auditor' s branch. GREENWELL: The Legislative Auditor ' s though is under the Council . MAUNAKEA: The Council. CUSHNIE: But is there a conflict here, where you may be preparing exactly the same data that the Legislative Auditor ' s branch is doing? GREENWELL: I think that . . . that is so short-termed a thing, the Legislative Auditor ' s ( inaudible) Council personally. Whereas this is long-term research, I would think. CUSHNIE: Do you feel that ' s implied? MAUNAKEA: I haven' t felt a conflict from the Legislative Auditor up to now. I haven' t . . . I haven' t . . . it hasn' t crossed my mind. CUSHNIE: If you might give it some thought as to future implications and (inaudible) respond with something more specific if you feel it ' s necessary language in aide. 290 And then also, other departments that come under the mayor have charge in reviewing the (inaudible) , informing the mayor. There' s specific language. They all seem to be given a specific charge. Yours is collecting, coordinating. Do you feel there should be more specific jobs assigned to you in terms of reporting back to the mayor or an agency? MAUNAKEA: I . . .you could make it more specific. To me it ' s understood that because this information is being used for policy making and legislative decision-making, it ' s assumed that those. . . that those decisions are being made by the mayor. CUSHNIE: Do you feel comfortable if a councilperson approached you and asked you for the information the mayor had requested? MAUNAKEA: I think I would ask the mayor about it and get his permission because he' s my boss , and clear it with him first. CUSHNIE: ( Inaudible. ) If you thought that needed to be specified, would you give that some thought? MAUNAKEA: Okay. GREENWELL: They' re confirmed . . . but you' re confirmed by the Council? MAUNAKEA: Yes . GREENWELL: So it is ( inaudible) . CUSHNIE: There is. And the language in there appoint- ment is the same as other committees , such as the Planning Committee. But there is none of the specific language, she shall report to the mayor. GREENWELL: Right. CUSHNIE: Or advise, or propose. And I wonder if she would like to extend her job definition. Thank you. BETHEA: You know, they' re. . .yeah. JUVIK: It ' s . . . given your short tenure in your position, perhaps it ' s not fair to ask, but there doesn' t seem to be any other departments except Research & Development in the other counties in the state of Hawaii as such, coming to find the section. . . those duties may be safe for us to assume within the mayor ' s office, troubleshooting and special projects and so forth, some of the (inaudible) 291 - J department pursues. And I think that some of the (inaudible) dealing with the Research & Development Department have been because the Council perhaps saw this as some kind of a private operation of the mayor, and going off on things and so forth. . .not that the mayor perhaps shouldn' t have that authority to pursue special projects and so forth. I just wonder how the functions of your department might be handled in these other counties that don' t have a Research & Development Department . I 'm not suggesting that we should do away with Research & Development . I 'm just wondering, if they are just accepted as being part of the mayor ' s office responsibilities , if they have to go and look at long-term projects and figure out what ' s coming down the line and put people to work on special individual projects and whether they are able to do this without a special department, just by having the staff that might be in individual departments within the mayor ' s office. MAUNAKEA: I can speak to that a bit. Oahu, for example, has an executive assistant charged to research and development. I have the information in my office because I did research that I was interested in seeing how we compared in their charters to our Charter. They didn' t give me information per se, per charter , which is what I wanted. But I do have a job description for the executive assistant who is in charge of economic development for the City and County of Honolulu. Kauai does have a Department of Economic Development. It ' s not called research and development . And the way. . . they too did not send me a charter excerpt . They sent me more or less their goals and objectives and what it is they do. Now maybe that is what is in the charter , but they did not identify a particular section. So that ' s why I 'm not clear on that and I wasn' t able to get back in touch with the director of that particular department . But their much. . . they' re really tied into economic development. And it clearly. . . it ' s very specific. DUNCAN: Well , Mr. Chairman. It seems to me that the. . . that this particular department has an identity crises , as reflected I think in the kind of a loosey-goosey mandate. Do you think that perhaps we could get Ms . Maunakea to look at the name of the department , like Department of Research & Development , and see if that isn' t accurate according to your understanding of what your department is doing. I think the name of the department may lead to a lot of confusion and understanding of what its function is supposed to be. Now, it ' s very clear that when you' re a department of economic development , you know that mandate is fairly clear of what you ' re supposed to be doing. But here it ' s just kind of a chop suey of responsibilities. And these I 292 perceive as spelled up in the Charter are mandates rather than just broad opportunities to pick and flip, well at the discretion of the director , to pick and choose what his priority might be for that year or for that term. . . for his term. And this perhaps we need to define Chapter 5 completely. BETHEA: I. . . if I could just comment. I would agree with that. I think the department is an economic develop- ment department that . . .whose role (inaudible) tourism to promote (inaudible) businesses and economic development on the island. And that it should be providing data for example not only to the mayor in connection with this thing, but to the Economic Development Committee of the Council which also focuses on economic development. So it seems like to me that you have a Council committee that focuses on economic development and that this should be an economic development. . .and the research role would be to support that broad general objective. I don' t know, am I stating something different from what you' re stating? DUNCAN: You know, I think it ' s pretty consistent but I guess my follow-up thought is , where do we go from here. I mean this is a. . .you know, what we ' re talking about here will require some specific action. But I don' t know who else to call in to talk to about this. I don' t know whether history is important. L'ORANGE: If I could speak to. . .his (inaudible) involved departments for the years and the role has really changed as issues change. I mean when the oil (inaudible) was on the energy self-sufficiency, all the initial work on geothermal . . .the stuff that led up to the County and whatever , pursuing that . . . I mean, an awful lot of stuff came out of this department when HPB was strictly (inaudible) . They have a much bigger role in tourism because HPB was (inaudible) not working here. And there was complaints from the hotel industry, aw, they didn' t know anything about tourism. We don' t (inaudible) . I mean, it was people problem. The issues have changed through the years . I think we write specifics at this point in time. Five, ten years from now, the needs in this area. . . I agree with you, the name needs to be changed. Everything needs a lot of flexibility. And I think the budget process works to either expand or restrict what their priorities are. But it really has changed, I mean, there was big bucks came through (inaudible) with SRI on the energy issue. You've got probably a whole library of energy documents that are useful today, basic research and stuff for the County. DUNDAN: Well , for us to proceed as a commission in evaluating Chapter 5 , what are you suggesting? 293 L'ORANGE: I 'm comfortable with what ' s (inaudible) . I agree with you that maybe the name needs to be changed. CUSHNIE: I 'm comfortable with flexibility, but I 'm concerned that if the Charter is a mandate, there is a moral and legal obligation to fulfill all portions of it . And if we are picking and choosing of necessity because one portion can' t be fulfilled because we can' t chair something imposed by the County Penal Code, I think that needs to be house- keeping. I think we need to do something about that , in fairness to the department . Why burden them with gathering all grant-in-aid information when that is not a (inaudible) or a reality? I think this is (inaudible) a case of an ideal position now to create her own job description as she sees fit and still maintain the flexibility. I don' t think she has to specify we can focus on the film industry, tourism, solar energy but at least to eliminate those things that she neither foresees nor has seen in the past as being necessary. BETHEA: Let me ask (inaudible) . Looking back at the history, would most of the things they did fall under this economic development umbrella? L'ORANGE: No, not. . .not . . .not completely. I mean, you could say energy self-sufficiency is a big economic issue, long term. But the research that was done was in biomass and solar , in. . .a lot of stuff in the County led to the host of the National Energy Lab being built at Keahole. I mean, a lot initiated here didn' t necessarily all come from (inaudible) . And when. . . (inaudible) Ki Hahn was the consultant , that spent an awful lot of time with the County. You could say economic development, you know, way, way down the line, but no, no, it was strictly what are the alternatives for the County, and they researched all of the various alternatives. JUVIK: So then. . . I could just well . . . I would agree. I think that potentially who knows what kind of issues. . .we' re gonna need research, energy conservation for example. Young Ki Hahn is (inaudible) change (inaudible) high sodium and so on and so forth. There may be many issues which. . . there could be many environmental issues , the problem with wastewater disposal and so forth that may. . .they may be able to write grants and get some reseach money for, that wouldn' t be strictly, you know, going out and just marketing the island. Well there' s nothing wrong with that . But I 'm just saying there might be other issues. And I 'm not sure if. . . BETHEA: Maybe it ' s research and economic development. Or the research option is there and you need the flexibility to do. Is that what you' re suggesting? 294 JUVIK: Well , I 'm simply saying that there may. . . for example, we' re going through a great spasm of economic growth at the present time. And you know, maybe a few years from now, maybe infrastructure problems , other issues that are not so much. . . sort of accommodate this growth and so on and so forth. It may not just be. . . I mean simply, we may not be out seeking the maximized growth to try to accommodate and adjust the existing system through research on alternate energy, waste disposal , all those other issues which may not strictly be economic development per se. So, I 'm not saying it shouldn' t be economic development; I 'm just saying that we should think about it . DUNCAN: But what I understand is that many of these. . . the research grants , or grants are being written by (inaudible) departments at this time. . . JUVIK: In certain areas . Certainly Housing has obvious . . .has definitely taken over. But I don' t understand (inaudible) is left . . . GREENWELL: ( Inaudible. ) JUVIK: . . .where (inaudible) is left where (inaudible) stronger grant seeking ( inaudible) more esoteric, long-range kinds of things (inaudible) be writing grants (inaudible) department , or (inaudible) day-to-day (inaudible) . DUNCAN: So where is the breakdown though in direction? You know, like if that becomes policy at the County and then the direction sets that we shall seek these grants . . . JUVIK: Well , I would simply go with Pete on the flexibility issue that . . .you know, this isn' t a department. . .maybe in other counties , it ' s merely an entity within the mayor ' s office that they just have to go out and play ball on issues that arise and pursue new technologies , new industries and so on and so forth. And it ' s hard to specify what they' re going to be writing grants in or not writing grants in (inaudible) . MAUNAKEA: If I may interject , item (b) at first gave me some problems because it talks about including economic, social and cultural proposals. And when I first reflected on that , it was quite confusing. Because that could. . .R&D could virtually take on human services at that point . And yet there' s a flexibility there that would enable R&D to pursue some of the things you' re saying. Some things which I do think belong in the department. The approach that I 've taken to address that is that you can have social and cultural issues and the example that comes to mind immediately for me was for the dynama. . . 295 concerns like the dynamation exhibit. I don' t know if you' re aware of that . But that ' s a County-sponsored special event . Under the parameters of item (b) in the Charter, okay, you can get away. . . get away with that. But in my interpretation of the department , and that ' s why I say it that it really depends on the personality of the person in the seat , I wouldn' t sponsor an event like that because it is not related to the economic development. You can have a cultural event , i.e. Merry Monarch, that is related to economic development . Or the Billfish Tournament, or something that is cultural , something that . . .you know, even a social program, but you gotta relate it in my mind to economic development . That was my. . . that ' s my personal intent and that ' s how I 'm drawing the line. POPPE: Which the interest (inaudible) course is economic is not in there particularly. MAUNAKEA: Well , including economic, social and cultural . . . POPPE: But your comm. . . I mean so it could be interpreted either way. I would agree, Jim, that it ' s. . . it does have a flexibility in (b) to say, never mind the economic, let ' s look at social or something. So that flexibility is . . . GREENWELL: Mr. Chairman? BETHEA: Yes. GREENWELL: The department is run over the years by what the Council or the mayor wants it to do. And I think the thought is to. . .that that is (inaudible) they' re gonna make the decisions anyway, and the changes in their budget indicate (inaudible) . JUVIK: You can' t put their budget in the Charter. GREENWELL: Yeah. BETHEA: Well , what it seemed to me is that it ' s come down. . .we do need to do something about (c) , because it simply doesn' t reflect the reality. No. 2 , that this department , like the other departments , comes under the general supervision and control of the mayor. ( Inaudible) sentence out of there. I feel I detect a kind of a feeling that it needs to be a flexible type of department that could be assigned specific tasks by the Council or by the mayor. That kind of. . . GREENWELL: Councilperson Lorr. . . Inouye communicates that the County Code is in conflict with the present setup. 296 INOUYE: May I? BETHEA: Yes , please do. JACOBS: Could you please come up when you do it though? INOUYE: Okay. It ' s just . . . I. . . that ' s fine. I just wanted to share something since I chaired the Economic Development Committee for the last four years. And I did research the activities and the initial inception of the department ; and that ' s what I was trying to tell you earlier. That I went back to the minutes of the Charter review and the conflict is that the Charter requires that R&D is advised by an advisory body. And that ' s where the problems that I had in looking at the County Code and what the department was like. And I believe Mr. Herkes and I . . . our feelings were the same. And that ' s what we couldn' t grasp what R&D was doing, but we thought somehow, because it was under the mayor, I like that suggestion by the way about it being under the mayor, because it seems like the function is according to. . . but. . .and the creation of the department is only such that it was created not out with County funds, the creation was through a state grant for an economic activity at its inception. And thereafter , it was the administrations that came later that created this division. And so that ' s what we couldn' t understand, you know, there was a definite conflict . Because the County Code. . .and what we were trying to do. . .my recommendations was that we go back to the County Code and also set up a special community advisory group to ref. . . to make the. . . to guide the department , the director, in looking at. . .and my concern at that time was looking at economic activities; i. e. energy, agriculture, looking at all of those different components. And where the advisory body was supposed to be a representation of the different comm. . . the sector of the community, somebody, the Chamber for instance, or agriculture (inaudible) . . .agriculture should be represented in the business community. And all the different professions. And they would guide the department with the funds that the state had appropriated to look at these different activities. And so that ' s . . .henceforth, you know, it came. . . BETHEA: Now that ' s all disappeared now, because it ' s funded out of County funds . . . INOUYE: Entirely. Actually. . . BETHEA: . . . to a large degree. INOUYE: So what happened was the state fundings was pau. There was no more of it. And so then the 297 administration thereafter felt that there was a need for , you know, this type. However , it. . . I think it got a little out of control . Because then the Charter says , you know, Research & Development , and so the. . .that ' s where the conflict again was with the Council . You know, what are they doing in the research field? And so, I . . . I 'm happy to see that you' re. . .hopefully you can clarify, you know, the language. . . BETHEA: Well the County Code, you mean simply a County ordinance, right? INOUYE: Yes . BETHEA: This I think of as the overriding body that creates. . . the Charter creates this department. The Council has control and. . . INOUYE: (Inaudible. ) BETHEA: .. . budgeting, funding, how far they' re gonna go, etcetera, etcetera. It seems. . . so that I don' t think of the County. . . I don' t think of it as a conflict with the County Code because I think this controls. But I think what we have found is that particularly with respect to (c) , it doesn' t accurately describe their functions . INOUYE: Because the functions were supposed to be described by the advisory board. The advisory board was to take the lead in directing the director of that division. Because you were expending state funding. BETHEA: Anything else? Thank you. Thank you very kindly. MAUNAKEA: It ' s my pleasure. CUSHNIE: Mr. Chairman, I do have a question, if I may ask? BETHEA: Yes , go ahead please. CUSHNIE: Every other department that we investigated so far we've had reports from (inaudible) Board of Water, etcetera, they have a specific commission but no where has that commission been able to (inaudible) to determine direction of the department . You know what I mean? The Police Commission does not determine direction, but they advise in a, I think, a secondary manner. JUVIK: The Water Commission does. BETHEA: Yeah, the Water. . . 298 CUSHNIE: Well , I think we have to clarify that. Are we going to put this department at the mercy of a commission? Or are we going to eliminate an advisory panel? GREENWELL: It seems as though it ' s eliminated in our present Charter. BETHEA: I think it is eliminated in our present Charter. It doesn' t . . . in other words , the Charter controls. If there is a County Code that ' s inconsistent with the Charter provision, then the County Code is out. The Charter provision prevails . That ' s what I 'm saying. CUSHNIE: Yet there was reference to a gentlemen signing yearly reports. How long has that ( inaudible) ? GREENWELL: I would assume that . . . that was back probably. . . CUSHNIE: In the days of. . . GREENWELL: . . . fifteen. . . CUSHNIE: State aid? During the days of state aid? GREENWELL: Fifteen ( inaudible) years ago. JUVIK: The Charter doesn' t prohibit (inaudible) department (inaudible) advisory (inaudible) . CUSHNIE: So maybe we just need to eliminate that from the County Code and ask Ms. Maunakea if she does want an advisory council written into the Charter. GREENWELL: (Inaudible) took it (inaudible) . JUVIK: What do you think about that? Would you like to see a formally appointed mayor. . .mayor-appointed, Council-approved commission to oversee your policy or provide advice? MAUNAKEA: Again, as part of my personality, I typically consult a number of people in order to make. . . it ' s just the way I do business. I 'm already. . . I think I 'm already using people in the community in the same capacity that an advisory committee would be used. I don' t feel the need for it . L'ORANGE: Mr. Chairman, not all the (inaudible) , I mean, Public Works doesn' t have a commission (inaudible) . Not everybody has a commission, I mean, there. . . it depends on their function. 299 BETHEA: Anything else? Again, thank you. MAUNAKEA: Thank you. VII. LIQUOR DEPARTMENT OPERATIONS By Jan Bibb (Verbatim) BETHEA: I got your proposal (Attachment D) early enough to have read it carefully. Did everybody else? Maybe we can. . .unless somebody wants a summary, we can simply ask our questions about your proposals and that type of thing. Is that okay with everybody? Who wants to start? ( Inaudible. ) Let ' s turn to page 27 on the boards and commission (inaudible) . Your proposal for a member whose term is expired continuing to serve. That would have general application I presume. BIBB: Yes. BETHEA: I really quite frankly don' t know the implications of that . You usually have people who are members for a term. I don' t know whether it would do any good or not in the sense that you know the administration can still wait the two years or how long the term was , 90 days , and you can still be late. L'ORANGE: Let me verify that . Whenever. . . I think when you have the same mayor continuing, there' s no problem because he foresees it and gets the things , hopefully if he' s a good administrator, to the County Council for confirmation when there ' s a change. It only comes up where you have a new mayor that is elected in November and the people are done December 31st. What with. . .what this would allow is where a new mayor comes in, you would have till March 30th for him to submit names for those that are. . .need to be replaced. And I think from that standpoint it makes sense to give the opportunity. That ' s the only time it would make any difference, where you have a new mayor. It just gives a little more time and allows your commissions to, particularly your Planning Commission, to function with a quorum. But I think it ' s a good suggestion. You' re also correct , if the mayor drags his feet . . . any different than. . .yeah, he could still have people expiring. But it does make it possible. GREENWELL: I think so long as the term is expired, not the people. 300 POPPE: How. . .how does condition (e) link into that and essentially says , "Any vanancy occurring. . . shall be filled"? Or is it that refers directly to the unexpired term I suppose. But that conceivably would say, somebody' s got to do something. Somebody' s got to fill it if it ' s expired because now it ' s vacant. BETHEA: Well it ' s not vacant , but then. . . because the term didn' t expire for 90 days after the two years unless there was an appointment. When the vanancy would occur, I think is after the 90 days . Because you can' t . . .you ' re prohibited from serving more than two years and 90 days . I mean, then you' re gone. (Inaudible. ) BIBB: As I see it , the Charter already treats it as two separate issues. One is that the vanancy in a term and the other is the expiration of the 500 term, which is what I 'm saying. I think that there should be a provision for 90 days. That ' s of course really up to you. But it does treat it differently (inaudible) . BETHEA: One of the things you said in your letter is that by statutute employees are prohibited to remain in the election and be here. Any candidate for (inaudible) . Does that statute, to the best of your knowledge, apply only to people in the Liquor Control? BIBB: Yes. Hawaii Revised Statutes , Chapter 281 , (inaudible) the laws the state under which you operate as well as (inaudible) . Yes, definitely only to the Department of Liquor or Liquor Control . BETHEA: That ' s right. You ' re. . .you have to police both state law and County ordinance, don' t you? BIBB: Yes. BETHEA: Your second proposal here. Is this a proposal for a new provision L? BIBB: Yes . BETHEA: "The jurisdiction. . . shall be limited to the provisions established by this charter. " But what are they? I don' t know of any. . . BIBB: Can I . . . I ' d like to explain this . BETHEA: Yeah. BIBB: If you look at that section dealing with the Police Commission, you will note that it states . . . let me go back and look in my book, please. 301 BETHEA: Yeah. The commission doesn' t get involved in the day-to-day. . . BIBB: That ' s right. All it says as. . .committed to ( inaudible) by law. There is no other law that deals with the Police Commission. Okay. With the Liquor Control , you have outlined the specifics. You operate within these guidelines. Similarly, with the Water Commission discharges , as well as the Civil Service Commission, which is mandated to operate under statute under the Civil Service laws. So when I ask for this new position, it ' s meant to say generally our boards and commissions shall operate under jurisdictions that ' s outlined in this Charter. And it is up to that. . .up to your Charter Review Commission to outline specifically what you would like to be done, for example, with the Police Commission. POPPE: In other words , essentially what it. . . it ' s a mechanism that forces us to do our job. BIBB: And also to make it clearer to commissions what their jurisdictions are if it ' s not stated in statute or if it ' s not stated in the Charter , I think sometimes . . .you know, you've got people here who are serving from the public. It ' s difficult enough as it is to make decisions in public without some kind of guidelines which they can operate under. For the Liquor Commission, it ' s not too bad because we've got Chapter 281 . But really our structure. . . . BETHEA: Well one of the. . .you put this in. . .when you suggested that , or (1) back on page 27 , 2.7 and 28 . Now that is a series of general rules . . . BIBB: Yes , it is. That ' s right. BETHEA: . . . general provisions , having to do with boards and commissions . When I go back and look at 7-3 . 3 on page 14 , 7-3 . 2(c) , it . . .for example, the powers of the Liquor Commission are set out there. Isn' t that sufficient? It says , "Have such other powers and duties as may be provided by law, not in conflict with the provisions of this section. " BIBB: For the Liquor Commission, that ' s not a problem. Yeah. As I said, say Water Commission might be a problem. But for Police, yes. I think where your. . . where it ' s not clear what the powers are, that it should be stated. And this . . .the general statement under 13-4 would almost mandate that you do have. BETHEA: See, I don' t understand. Let ' s go back to. . . 3 . 2(c) for example. That "may be provided by law. " When you read that , does that include ordinances? 302 BIBB: Yes. BETHEA: So that this means that despite the Charter , the commission can be given other powers by County ordinance? BIBB: Not by County ordinance, by state law. We don' t have. . . BETHEA: By law you don' t mean to include the County ordinance? BIBB: I 'm sure there must be some commissions who operate under the County ordinance. With the Liquor Department , we operate under the state statutes. It gives commissions and boards its duties and powers . BETHEA: Yeah. What I 'm asking you specifically, Jan, is in (c) , it says , the Liquor Commission shall have "such other powers and duties as may be provided by law. " You mean by state law; you don' t mean by County ordinance? BIBB: That ' s right . For our department , state law. BETHEA: Otherwise, the County. . . the County Council could put . . . adopt an ordinance that says the commission shall do all kinds of things. BIBB: Yes. BETHEA: Okay. But what you' re making a recommendation is. . .for, that in general . . . POPPE: (Inaudible) recommendation is not for the Liquor Control Board per se, so much as all boards and commissions. BIBB: Uh-huh. BETHEA: In effect , the County ordinance can' t change the powers that are granted to the (inaudible) , limited to the provisions. . .you mean provisions? The jurisdiction of powers shall be limited to those jurisdictions and powers established by the charters? BIBB: Yes. BETHEA: What I was getting at. . .what I 'm getting at cause it ' s sometimes difficult for me to know when you create a department , and they say well it ' s subject to the provisions of the law, can the County Council by an act of ordinances change its duties and powers? 303 BIBB: I think the County Council by the Chapter 46 of Hawaii Revised Statutes has certain powers permitted to it , what it can do. I don' t think that was . . . I don' t `think you can do that with (inaudible) . I 'm not sure. BETHEA: Yeah, I think that the County Charter prevails except over general law. BIBB: Correct . And I ' ll give you an example. GIANNINI: In general , there are. . . there have been cases on it in which, for example, the. . .what would define say what a board or commission or any County department could do would be the Charter, except like you say if it ' s in conflict with a. . .with a state statute that sets up a general law. For example, there was a case in Maui several years ago which involved conflicts within the county' s Civil Service Department and a provision of the charter which I believe was in conflict with the state civil service law. And they said that . . . that where you have an overall state statute, such as the state civil service law, which intends to produce one statewide system, then that has to take precedence over the County. . .over the County Charter. And therefore the County Charter could not be in conflict with it. The County Charter could not provide for something different. But if it ' s something that goes to strictly a local concern, then the. . . then the County Charter is paramount over that. BETHEA: See, what I thought we were getting at , for example, in the Police Commission, there is a specific prhoibition against the commission getting involved in the day-to-day operation of the department. And I didn' t know whether you were aiming at something like that . . . BIBB: No. BETHEA: But that ' s not your concern? BIBB: Well , I think. . . in my justification, hoping that all boards and commissions know that they really don' t have the jurisdiction to interefere in the department ' s operation. By our Charter for the Liquor Commission, yes , the separate duty of the. . . they will adopt rules and regulations. They will hear license applications , and grant or deny them. So there are very specific things to that commission. And I think it ' s understood perhaps , maybe I 'm assuming wrong, but with the Liquor Commission anyway, I think it ' s understood that these are the duties they have. Similarly, in provisions in the state statute where state statute reads that the commission shall have the power to suspend or cancel a license, they cannot do that . The 304 adjudication board can suspend. So we operate under Charter provisions. Where the Charter it says the board will suspend, that ' s how it operates. That provision in the state statute does not apply to the commission. So we' re not inconsistent with the Charter. OMONAKA: Is that being challenged? CUSHNIE: Yeah. BIBB: Pardon me? OMONAKA: (Inaudible) exactly (inaudible) described (inaudible) challenged to the (inaudible) ? BIBB: No , I 'm not sure that there hasn' t been a precedent case for the County of Hawaii. POPPE: Very simplistically what we' re getting at here is the Planning Commission could not tell the planning director who. . .which of his planners to assign to a particular case. I mean, simplistically. That ' s. . .what your justification is , members aren' t involved in the daily operation. Well members of the Planning Commission then would not go over the planning director and say, hey, this is how to run your department. The Charter provision says no. You' re just hearing this . . . BIBB: I would hope not the Planning. . .you know, you have a director who (inaudible) qualifications , I mean. . . POPPE: Well , I mean, it ' s just to clarify your recommendations . That ' s what you' re getting at . BIBB: Yeah. BETHEA: Okay. BIBB: ( Inaudible) throw this out. DUNCAN: Jan? BIBB: Yeah. DUNCAN: The reason you' re (inaudible) about alcoholism and the misuse of alcohol , it seems to me that your mission of course has been to control (inaudible) and that they abide by the rules in dispensing of liquor. Have you given any thought to expanding the role of the Liquor Department into more probably minor education in alcoholism and more use thereof. I mean, again, I guess I 'm such a fanatic about preventative programs rather than, you know, the mission of your enforcement division may be to bust those 305 premises that may be selling to minors. Well , it seems to me that should go hand in hand with something else. I mean, it seems to me that we should be putting as much emphasis on education to the consumer, you know, and perhaps to children as well as the. . . to just be. . .have you guys out there, you know, busting this premises , I mean these establishments that may be violating the rules. POPPE: Which isn' t part of your goals in the end here actually. BIBB: We do that anyway. But let me go back, I mean. . .first , we' re a regulatory agency, you might say, we' re an enforcement agency through our investigative field. We' re are involved in the education of licensees at this present time. We do have programs for high schools and schools. We have a (inaudible) system that we lend out to the schools . We do go out to community organizations and give speeches on whatever topic that they want. Within our four-year plan, we have or I have, an educational officer position lined up, I think maybe it ' s two years from now. (Inaudible) not sure. Generally, the use of the funds are related to department-oriented activities , which are right now just licensing and enforcement . But I 'm a former school teacher so I have the programs that can go out into the community at any time. But it is not a specific item that you would see in our budget. We do this anyway. But not , correct . . .not yet to the general public full blast. We ' re not equipped to do that yet . I 've sat as the moderator on some educational curriculum for some alcohol awareness programs and next year ' s budget includes , not this year, the following year, for educational materials. In other words, I want to have the resource available before I start going out into the community. But that has been a focus of not only the County. . .of all County Councils and that the state Legislature can have us get more involved in education. And I agree with them. We just have to stop fighting about our money. JUVIK: So you feel a Charter. . . if the Charter was say expanded to include a specific reference or not? Or would that strike you in the case (inaudible) for financial support (inaudible) educational programs? BIBB: No. If you'd look at our budget , you ' d realize that we are self-funding. It ' s really a focus of the department. And it ' s been a very active few years here (inaudible) . But we do go out. Yes. BETHEA: Other questions , comments? 306 LUM: I have a comment along that line. Do you feel . . . well , your feeling is that education is important . But if someone else should come into your position and decide that education was not important , suppose ( inaudible) put aside funds for that aspect . Correct? Because it ' s not mandated in the Charter. So maybe from that , do you feel that it should be in the Charter, that education should be a (inaudible) ? BIBB: I ' d have to think about that. BETHEA: You what? BIBB: I ' ll like. . . I ' d like to think about that. GREENWELL: You' re really under the state. So it would almost have to be state rule, wouldn' t it? BIBB: And I ' ll tell you why I want to think about that , yeah. Mr . Greenwell is correct . Unfortunate or fortunately, when we talk about funding, the liquor industry has been very clear that monies used. . .monies of the Department of Liquor shall be limited to at this point , they' re talking about education of licensees , because these are the fees . We get the fees from the licensees. And so it would. . . the request is to limited it to the licensees at this time. In the last three or four years there have been attempts to put in education to the public. I mean, it ' s never passed the Legislature because of industry lobby. That you' re not to use the funds paid for. . . paid by licensees for the general public, which may be. . . GREENWELL: A tremendous (inaudible) . BIBB: . . .prohibition if they' re caught and against the industry itself. Those general kinds of concerns . BETHEA: So that you raise your funds from the licensees and the state statute then also controls the use of the funds . So that even if you wanted to, you couldn' t educate the people about the evils of demon rum. Is that right? BIBB: I think we can still do that. BETHEA: Well . . . BIBB: I think we have to provide the barest of information to the people. JUVIK: I think your comment was naturally argued for putting it in the Charter. I don' t drink and you probably 307 won' t get to me. But I (inaudible) the Charter. CUSHNIE: Mr. Chairman? Doesn' t this raise an interesting question though about who supersedes in terms of law? We so often use general statements which we've discussed before about the law; they shall abide by (inaudible) of the law. And as our counsel mentioned, one may supersede another if there' s a (inaudible) implication, so I think we need to straighten this out . The reference to legal power over commissions in departments. Do you know what I 'm getting at? BETHEA: Well , I can see it . . . CUSHNIE: Here we have a state. . . BETHEA: . . .particularly here. Here is a state statute which apparently affords the authorization for the collection of licensing fees. And then the state statute, as I understand it , goes on to say how the department can expend those fees to examine prospective licensees , for reports , liquor rules and to educate licensees about licensing requirements and liquor rules and that type of thing. But as I understand it , there is a restriction in the statute to using those funds for particular purposes . And that purpose that is not listed might exclude public education which would discourage the use of alcohol . BIBB: And on the (inaudible) have to rely that our jurisdiction is founded on licensing. That ' s our (inaudible) jurisdiction. When we. . .when, example , when there is a violation involving you the public, we never prosecute the public; we prosecute the licensee. That ' s our jurisdiction. CUSHNIE: How is that granted to the. . . through the Charter or through state statutes? BIBB: Statute and through the Charter. CUSHNIE: Which supersedes? BIBB: I would imagine the Charter would. Help. GIANNINI: Generally, with regard to that . . . to that liquor statute, Chapter 281 , the way I would look at it is , Chapter 281 tends to create a uniform system of liquor laws throughout the state. So I would say probably 281 is an overall controlling statute. But the case I think you need to look at , I did not remember the name of the case afterwards , is a case called Maui County vs. Ariyoshi , and it ' s , I don' t know, from about early ' 80s or late ' 70s . And it ' s a long case, a complex 308 case that goes over the whole issue of when. . .when state statute supersedes County Charter and otherwise. And that would be a good case to look into. If you want me to I could probably go up and find it , up in our office in case anyone wants to go over the case. Right now, it ' s been a while since I 've read it , so I wouldn' t . . . so I wouldn' t want to tell you now what it says because I 'm not quite sure myself. But I know that ' s the main case in this state on state law vs. County Charter. CUSHNIE: Ms . Bibb, does the. . .do the state statutes also give the commissions , your Liquor Commission, their powers? BIBB: Yeah. But they are. . . but those powers fall into what you have here. In other words , where you talk about licensing things , then it just gives the specifics regarding licensing, some of the requirements that come to licensees. CUSHNIE: So the only mention then of for instance your proposal to extend the term of the commission member for 90 days , that is not covered in the state statute? BIBB: No, not at all . CUSHNIE: We would have jurisdiction there? BIBB: Yes. CUSHNIE: Your proposal (1) , "The jurisdiction and powers of a board or commission shall be limited to the provisions established by" that "charter" , by this Charter. Don' t you think that ' s a conflict of state statutes if they are assuming control of your commission and dictating. . . BIBB: No. L'ORANGE: By what . . . BIBB: In other words , state statute. . . L'ORANGE: (inaudible) give a license. CUSHNIE: But she' s . . . she also alludes to the fact that the state statutes give information regarding the commission. And here she ' s trying to say that it should be established by the Charter. L'ORANGE: I know, but how are people licensed? Do you find this , this , this and this , you can give a license. If you don' t , if you find this fact , like the guys (inaudible) , you cannot give a license. It gives you the conditions that you. . . commission gives a license or doesn' t give a license. 309 CUSHNIE: But they control all aspects of her budget. What if the Charter mandated educational programs? She has just said that the state statutes would deny that. BIBB: Right . I stand corrected. I would have to wait for Corporation Counsel I think. You know, jurisdictional matters in this particular case or precedented cases , I 'm not sur. . .aware of. No, I don' t think we would be and I ' ll tell you why. As I said earlier, where state statute gives us all kinds of jurisdiction and powers , we take from the state statute and put it into what is provided to by Charter. CUSHNIE: But you said there would be a conflict if we asked for an educational program because the liquor lobby does not permit you and your budget to spend money on educational programs . BIBB: Possibly. Possibly. CUSHNIE: So we ' re working with two bosses in this department? State and the Charter. BIBB: That ' s right. JUVIK: Just the. . .with the proposed a. . .the transferring of the sin taxes to the County, the liquor taxes for example, would that have any implication for the operation of your department? BIBB: Surely. JUVIK: It could. Would they also transfer then the responsibility? In other words , let the County develop its own liquor regulations and the laws and so forth? BIBB: That ' s right. In I guess it would be now Senate Bill 161 , which was formerly House Bill 1508 , the provision in there was to repeal all of Chapter 281 , which (inaudible) and give that authority to adopt . . . or enact a liquor ordinance to the councils. So, without . . . JUVIK: How do we cover that . . .cover that in (inaudible)/ BIBB: How do we cover that? JUVIK: That could be (inaudible) . BIBB: It would be by state statute. It ' ll give it under Chapter 46. That would be a power given to Council under Chapter 46 . 310 VARIOUS: ( Inaudible. ) BIBB: It ' s correct. I believe that statement ' s correct. BETHEA: Okay. Are there any other questions? OMONAKA: One question, Jim. Ms . Bibb, what do you think of the idea of taking the Liquor Department and moving it under state jurisdiction? Basically, we have laws that apply to all counties regarding liquor regulations . BIBB: Generally enabling laws . They' re only enabling laws and given to the counties, the. . . excuse me please. JACOBS: I ' ll get it [a ringing phone] . BIBB: They' re enabling laws which allow us to. . . in our rules and regulations , to adopt specific laws to have that particular law function. You have that. How do I feel about a state agency? I don' t . I wouldn' t want to see that done. I think. . . I think generally if you were to look at the rules and regulations , they' re pretty uniform in most things. Honolulu seems to be a little bit more open in types of activities you can allow but I don' t think that ' s necessarily suitable to the environment of each county. Vice versa. And I think you have a board of seven people, or a commission of seven people who supposedly through public hearings enact rules and regulations (inaudible) County. And I think that ' s great . BETHEA: Other questions or comments? DUNCAN: I just have one. . .kind of a. . .an issue that I 'm kind of concerned about , because I just left a meeting (inaudible) . You have how many employees , Jan? BIBB: Fourteen. DUNCAN: Fourteen. And there are fourteen in your department operation sheet. (Inaudible) 843 hours of sick leave. Is that unusual? BIBB: No. That ' s really small . DUNCAN: That ' s real good? BIBB: Yeah, when you look at total man hours of the department , 3 , 000 hours a month I think, out of 24 , 000. DUNCAN: What is . . . 311 BIBB: And it . . .you have to look. . . it ' s not . . . these are long-term kind of sicknesses , some of them. We try to. . .generally our department does not have a high percentage of sickness . But we will get back to you on that , I mean, I ' ll answer you. (Inaudible) work with Corp Counsel in jurisdiction inaudible) . BETHEA: Alright. Thank you very kindly. VIII . SCHEDULE NEXT MEETING It was decided the next meeting will be scheduled for May 17th at 3 : 30 p.m. , Liquor conference room. IX. APPOINTMENT OF ATTORNEY (Continued) Mr. L'Orange moved that the commission go into executive session to discuss all candidates being considered for the Counsel position to the Charter and how they placed. Dr. Juvik seconded the motion. All were in favor of the motion. Discussion took place. The Search Committee came out of executive session and suggested Chris Yuen be appointed to the position. Dr. Juvik motioned that the commission adopt the recommendation made by the Search Committee and appoint Mr. Yuen as counsel to the commission. The motion was seconded by Ms. Cushnie. All were in favor of the motion except Mr. L'Orange, who opposed Mr. Yuen' s appointment. X. GENERAL ITEMS Mr. Giannini wanted to cite the case previously explained in these minutes as Hawaii Government Employees ' Association vs. County of Maui , 1978 , Hawaii Supreme Court , which determined that county charters would take precedence over state law. XI. ADJOURNMENT The meeting was adjourned at 7: 55 p.m. Respectfully, su v tted, 4,44,-) R. Marie Ja.o . - , Executive Secretary 312 ' y HAWAP COUNTY ° 4 CHARTER COMMISSION •J ��:� 101 Aupuni Street,Suite 235 Hilo Lagoon Centre s� o, ,; �. Hilo, Hawaii 96720 'oF'' (808) 961-0177 Robert E.Bethea, MEAM Q R A N I U M Chairperson Sherwood Greenwell Co-Chairperson TO: Members of the Charter Commission .Members: FROM: Robert E. Bethea, Chairperson • Pamela F.Cushnie Francine Duncan David Fuertes DATE: April 17, 1989 James 0.Juvik • H.Peter L'Orange RE: Committee Recommendation 'on Hiring Aileen Lum a Commission Attorney Steven T.Nishikawa Akira T.Omonaka Patricia M.Poppe Executive Secretary: Attached is a Memorandum to me from Jim R.Marie Jacobs Juvik who chaired our Commission's Search Committee. As you will note, the Committee has recommended that - Christopher Yuen be hired as attorney for the Commission., This matter is on the agenda for our next Commission meeting scheduled for April -26, 1989 . • I intend to ask Mr. Yuen to :be• available . for questions at that meeting. If anyone 'has an •objection, please let me know. • • REB teW. Enc.icc: Ms. Marie Jacobs 313 ATTACHMENT A Pg. , 1 of 3 1 - _ HAWAII? COUNTY CHARTER COMMISSION h� • OFA = \Vli::���� . � 101 Aupuni Street,Suite 235 ~• Hilo Lagoon Centre �,- Hilo, Hawaii 96720 (808) 961-0177 Robert E.Bethea, M E M O R A N D U M Chairperson Sherwood QII TO: Robert Be pa, Co-Chairperson firman Members: FROM: Jim Juvi , •C aii , Attorney Search Committee Pamela F.Cushnie / Francine Duncan • David Fuertes DATE: April 1 `J 19 ' James O.Juvik H. PeterL'Orange RE: Recommendation on hiring a commission attorney Aileen Lum • Steven T.Nishikawa Akira T.Omonaka The Search Committee (F. Duncan, A. Lum and myself) Patricia M.Poppe undertook an active solicitation posture in its attempt Executive Secretary: to recruit a substantial applicant pool for the position R Marie Jacobs of Commission Attorney. In addition to newspaper advertisements, personal letters were sent to all attorneys in private practice on the island, describing the position and encouraging applications . A total of 14 applications were received (with supporting vitae) and evaluated by the Search Committee (also circulated to other commission members) . • The committee, meeting on Wednesday , April 12th, . interviewed the four candidates it felt were best qualified. On the basis of interviews and application materials , the committee unanimously concurred in recommending that Christopher Yuen be hired as attorney for the commission. Mr . Yuen impressed the committee as possessing formidable . legal talent and experience, including well-demonstrated abilities in legal research, analysis and writing (he has published law review articles on constitutional issues , including one co-authored with Jon Van Dyke. of the UH-Manoa Law School) . Mr . Yuen also evidenced a deep and perceptive knowledge of the County Charter , unmatched 'by other interviewed candidates . He further offered several thoughtful technical observations on Charter provisions • (e.g. ambiguities relating to decision making during administrative transitions) , as well as suggestions on voter education and organization of commission proceed- . ings with respect to the record of legal "intent" . • . Pg. 2 of 3 - 314 Robert Bethea, Chairman April 17 , 1989 Page 2 Although the committee is aware of possible concerns over Mr . Yuen' s involvement with certain controversial community issues, we are convinced that Mr . Yuen would bring no personal political agenda to the position of Commission Counsel. In the area of attorney ' s fees , Mr . Yuen quoted an hourly rate of $85.00 and indicated a general flexibility to work within the budget limitations of the commission (i .e. possible downward negotiating of his rate if the commission' s hour requirements became substantial) . Mr . Yuen' s hourly rate was generally comparable to those quoted by the other candidates interviewed (range: $75 .00 - $100.00 per hour) . 315 Pg. 3 of 3 BERNARD K. AKANA ; BARRY T . MIZUNO '• M,, ` Director o1 Finance Mayor `of.! 7 4 �,; . gTE•UF•N r� _ COUNTY OF HAWAII DEPARTMENT OF FINANCE 25 Aupuni Street Hilo, Hawaii 96720 April 21, 1989 TO : MR. ROBERT E. BETHEA, CHAIRMAN AND MEMBERS OF THE CHARTER COMMISSION FROM: BARRY T. MIZUNO, DIRECTOR OF FINANCE .,.` ,,e OF THE COUNTY OF HAWAII SUBJECT: DEPARTMENT OF FINANCE The current County Charter outlines the powers, duties, and functiohs of the Department of Finance under Chapter 3, Section 5-3. 3 . I would like to summarize and highlight this section of•• the Charter before describing the six divisions in the department . • Assist mayor in preparing and executing the operating budget, operating program and capital budget . o Negotiate loans and other financing instruments as authorized by Council and maintain records thereof . • Have custody of all public funds . • Examine documents by which financial obligations are incurred, and approve only after verifying the appropriation, allotment and availability of funds . ATTACHMENT B Pg. 1 of 11 316 MR. ROBERT E. BETHEA, , CHAIRMAN 2 AND MEMBERS OF THE CHARTER COMMISSION April 21, 1989 ' • Make disbursements for County obligations after verifying the appropriation, allotment and availability of funds . T • Maintain a general accounting system. • Prepare monthly financial statements for the mayor and Council . o Prepare an annual financial report within 90 days of fiscal year end. • Prepare and maintain property records for all real property leased or owned, equipment, and materials and supplies in County storerooms, and dispose of property not needed. o Perform duties of the purchasing agent, treasurer and auditor . • Collect special assessment . o • Function as ex-officio treasurer of the Pension Board. There are six divisions within the Department of Finance, each with specific powers , duties, and functions . Each division is headed by a division chief who is covered under Civil Service rules. The following is a summary of each division ' s role in the Department of Finance . REAL PROPERTY TAX DIVISION There are presently 30 positions in our largest division. It is led by Gary Kiyota, who has been its very able administrator since 1981, when the real property tax functions were turned over to the Counties by the State. 317 Pg. 2 of 11 MR. ROBERT E. BETHEA, CHAIRMAN 3 AND MEMBERS OF THE CHARTER COMMISSION April 21 , 1989 This division is responsible for assessing all real property f situated within the County of Hawaii in a uniform and equitable manner for purposes of real property taxation. It also provides assistance and information to property owners and the general public regarding real property taxation, and collects real property taxes as assessed. There are approximately 123, 000 parcels in our county, with a net taxable value of about $5. 2 billion. We anticipate that, at current tax rates, real property tax revenues will approximate $50 million in the upcoming fiscal year. ' ACCOUNTS DIVISION Headed very capably since 1980 by Controller Gary Takamura, this division is responsible for preparing the pension and payrolls for all County employees . Accounts also maintains financial control records of the County. It provides reports to the mayor, Council, and interested persons and agencies on a monthly and/or annual basis . Accounts maintains the County 's central supplies storeroom and property records , and is responsible for disposing of all surplus assets. This division also supports and assists the Pension Board. Pg. 3 of 11 318 MR. ROBERT E . BETHEA, CHAIRMAN 4 AND MEMBERS OF THE CHARTER COMMISSION April 21 , 1989 TREASURY DIVISION T Treasurer Frank Manalili has managed this division with great efficiency since 1977, when he transferred from being business manager of the Hawaii County Police Department . There are 13 employees in the unit : 11 in Hilo and 2 in Kona . Treasury is responsible for custody of cash on hand and in banks and of pledged securities . It also manages the investment program of the County. By keeping 99% of all funds invested at all times, this division earns more than $2. 5 million in interest annually for the County. • Treasury issues vehicle registrations and collects the appropriate fees and taxes. Dog and bicycle registrations and business licenses are issued , as are certificates of public convenience for taxis . Additionally, collection of improvement district assessments and collection records are within the jurisdiction of the Treasury. PURCHASING DIVISION Purchasing functions as the centralized agency responsible for procurement of all materials, supplies, equipment and services required for all County agencies, with two exceptions : the Department of Water Supply, and construction and renovation projects of the Department of Public Works . Pg. 4 of 11 319 i- MR. ROBERT E . BETHEA, CHAIRMAN 5 AND MEMBERS OF THE CHARTER COMMISSION April 21, 1989 Bill Gray has headed the Purchasing Division since 1982 and - has instilled the highest level of integrity, honesty and fairness within the division. Under his leadership, the primary goal of Purchasing has been to procure goods and services of adequate quality on a timely basis to meet the requirements of all using agencies in support ofapproved programs, at the lowest possible cost. DATA PROCESSING DIVISION Data Processing is primarily responsible for managing and operating the County ' s main WANG VS/100 computer system and its related telecommunications network . This system permits shared use of the central computer by all County agencies having compatible computer equipment. . The division provides systems analyses and programming of computer applications for County agencies . Data Processing Manager Gail Rock was employed by the County in 1979 to direct the computerization of its operations . Be personally led the development of the system and has managed the Data Processing Division since its formation in 1982. An advocate of employee training, he has been instrumental in providing computer training classes to countless employees. Pg. 5 of 11 320 MR. ROBERT E. BETHEA, CHAIRMAN 6 AND MEMBERS OF THE CHARTER COMMISSION April 21 , 1989 He also provides guidance to County agencies on computer-related T matters such as computer equipment acquisition, word processing, and data processing. Currently the computer system and telecommunications network consists of approximately 30 software applications, 150 computer workstations, and computer access capability for several hundred employees . Data Processing does not provide support to the Department of Water Supply, which has its own data processing staff. and computer system. Also, certain computer applications are processed by other government jurisdictions on a service • bureau basis due' to the state-wide nature of the data bases or to historical precedent. Such applications include real property tax, motor vehicle registration, driver licensing, voter registration, and the criminal justice data system. BUDGET DIVISION The Budget Division ' s primary responsibility has been to coordinate the preparation of, the annual County budget . - Additionally, this division monitors budget appropriations and actual expenditures to insure compliance with the law. The budget officer position has been vacant for two years . Budget Assistant Helen Matsui is temporarily filling the vacancy and has done a superb job of continuing the budget process . We will be posting to fill this vacant position on a permanent basis. Pg. 6 of 11-, 321 MR. ROBERT E. BETHEA, CHAIRMAN 7 AND MEMBERS OF THE CHARTER COMMISSION April 21, 1989 With the filling of the vacant position, we plan to embark f on developing a strategic financial plan for the County. This plan will combine operating and capital programs with their related financial ramifications for a period of not less than 6 years, and will eventually forecast 20 years into the future . . This planning mechanism is intended to help County officials proceed from "fact finding" to "fact facing. " Depending upon time available, we anticipate that the Budget Division will also review County programs . Audits will focus on compliance and cost effectiveness , and recommend changes for • improvement. • SUMMARY , The Finance Department is a staff agency that assists other agencies in accomplishing their goals and performs other tasks as necessary. The department also provides centralized financial services such as accounting, budgeting, cash management, electronic data processing, purchasing, and financial reporting. We issue various licenses, assess real property and collect real property taxes, administer the County pension program, and support the County Transportation Commission, Pension Board, and Real Property Tax Board of Review. Pg. 7 of 11 322 MR. ROBERT E. BETHEA, CHAIRMAN 8 AND MEMBERS OF THE CHARTER COMMISSION April 21 , 1989 The County and I are very fortunate to have a dedicated, IF competent group of division chiefs in the Department of Finance as well as many fine, dedicated employees. BTM .-as cc: Bernard K. Akana, Mayor Susan Labrenz , Managing Director Gregory R. Mooers, Deputy Managing Director Finance Division Chiefs • 323 Pg. 8 of 11 BERNARD K. AKANA =.f • BARRY T. MIZUNO Mayor ••..°< ,.:•; Director of Finance T,TE,oF;0••Nr COUNTY OF HAWAII DEPARTMENT OF FINANCE 25 Aupuni Street Hilo, Hawaii 96720 April 21, 1989 TO : ROBERT E. BETHEA, CHAIRMAN AND MEMBERS OF THE CHARTER COMMISSION FROM: BARRY T. MIZUNO, DIRECTOR OF FINANC � i-t- <�JJ 7. SUBJECT: SUGGESTED CHANGES TO THE COUNTY CHARTER In response to your request for suggested changes to the County Charter, I have solicited comments from my division chiefs . There are several which '1..believe are worth your consideration. • 1. Section 10-14 (c) (1 ) calls for a limit of $4, 000 over which public advertising is required . We suggest that this be reworded to conform to whatever limits are called for in , Chapter 103 of the Hawaii Revised Statutes . An increase in these limits has been proposed and, if not this year , will surely occur sometime over the next 10 years . The $500 limit requiring written quotations should perhaps be raised to $1, 000 . Pg. 9 of 11 324 ROBERT E. BETHEA, CHAIRMAN 2 AND MEMBERS OF THE CHARTER COMMISSION SUGGESTED CHANGES TO THE COUNTY CHARTER April 21 , 1989 2 . Section 10-14 (c) ( 4) discusses procurement of T standardized items ( sole source or sole manufacturer ) . We have never had a formal policy on how to determine when this section applies or who may make the determination . Should it be at the discretion of the director of finance? 3. Section 13-13 discusses contracts, but makes no mention of value. We have never had a policy stating what limit should be applied. I suggest that all professional services costing $1, 000 or more require a formal contract as opposed to using a purchase order, unless an emergency or other exception exists . This would insure that funds are certified, the scope of services is spelled out, and the director of personnel reviews and approves the contract. 4 . Computers are essential tools in the operation of County government. The expanding role of data processing services and their scope of operations must be recognized and properly addressed. Future growth in computer usage among County agencies and increased related expenditures are an absolute certainty. Proper coordination, long range planning, and control of such technology are necessary to ensure efficient and productive use to the County and. to minimize expenditure of taxpayer funds . Pg. 10 of 11 325 ROBERT E. BETHEA, CHAIRMAN 3 AND MEMBERS OF THE CHARTER COMMISSION SUGGESTED CHANGES TO THE COUNTY CHARTER April 21 , 1989 Consideration should be given to establishing a distinct 0 agency with allegiance to or control by no one one department ( such as Finance ) and with adequate authority to guide and coordinate acquisition and use of computers , office automation, voice and data telecommunications, and future high-technology developments on a County-wide basis . Consideration should be given to establishing a full line department such as currently exists at the City and County of Honolulu, or to designation of an "executive agency" under the Mayor 's administration as has been done with Civil Defense, Office of Aging, and the Hawaii Redevelopment Agency. I wish to thank you for the opportunity to express my opinions regarding proposed changes to the County Charter . BTM:as cc: Bernard K. Akana, Mayor Susan Labrenz, Managing Director Gregory R. Mooers, Deputy Managing Director Finance Division Chiefs Pg. 11 of 11 326 • Bernard K.Akana i • Mayor oJof q�4Departmentartment of Finance BarraT.Mizuno Director ▪'▪ =_ - __ 25 Aupuni Street,Rm.118 • Hilo,Hawaii 96720 • (808) 961-8234 JULY 12 , 1989 • TO: ROBERT E . BETHEA, CHAIRMAN_ AND MEMBERS OF THE CHARTER COMMISSION FROM: BARRY T. MIZUNO, DIRECTOR OF FINANCE1/6/(:: ,,,,617 SUBJECT: PROPOSED LANGUAGE CHANGES RELATED TO THE DEPARTMENT OF FINANCE During the discussion period of my presentation on April 21 , the Charter Commission requested that certain language changes be submitted for your review and discussion . TRANSFERS • Much time in the past was spent discussing the controversy of the authorization of the mayor to transfer unencumbered funds as described in Section 10-9 . The Administration 's position is that we agree with the basic intent of the Charter; however, the language should be strengthened to incorporate "funds duly appropriated" as described in Section 3-11 (c) . We suggest Section 10-9 be amended to read: The mayor may at any time during the fiscal year transfer part or all of any unencumbered appropriation balance between classifications of expenditures or programs within an agency or executive agency; and if at . an.y 't`ime the mayor so requests in writing, the council , by reSoluton effective immediately upon adoption, may transfer , part o.r' 'all of any unencumbered appropriation balance from one a.g.e,neyt:or executive agency to another . Such transferred funds will be • considered a duly made appropriation . But no trai fer shall be made from appropriations for debt service or for estimated cash deficit; and no appropriation maybe reduced below any amount required by law to be apprpp:riated. - • • :';; 326 . 1 Robert E. Bethea, Chairman, Charter Commission 2 PROPOSED LANGUAGE CHANGES, DEPARTMENT OF FINANCE (New material to be added is underlined . ) The effect of this change is to clarify the process of transferring funds within a department . This subject was addressed in an opinion by Corporation Counsel issued on May 5, 1989, a copy of which is enclosed. That opinion stated, in part, that a transferred fund can still be considered a "duly made appropriation. " The suggested change in Charter Section 10-9 clarifies this situation by specifically stating it and should avoid any conflict with Section 10-10 , which requires that all payments or obligations only be made by duly made appropriations . CENTRALIZED PURCHASING Section 10-14 (c ) (2 ) refers to a specific limit of $4, 000 over which public advertising is required. We suggest the following: (2 ) The aggregate amount involved does not exceed [$4 ,000 .00 ] limits established by the Hawaii Revised Statutes, Chapter 103 ; however , any purchase or contracts involving sums between $500 .00 and [$4 ,000 .00 ] the established limits shall be based on competitive bids which shall be in writing. SOLE SOURCE Section 10-14 (c ) (4 ) should read as follows : It is determined that the procurement of equipment determined to be technical equipment is necessary to assure standardization of the equipment and interchangeability of parts and that such standardization and interchangeability are necessary in the interest of economy. Determination of sole source to be made by majority rule of the Standardization Committee as described in Section 10-14 (b ) . CONTRACTS We suggest the following changes to section 13-13 : The first paragraph should read : The county may enter into contracts with private parties , other counties, the state or the United States for the performance of any function or activity which the county is authorized to perform. All written contracts exceeding $1, 000 . 00 to which the county is a party shall : 326 .2 Robert E. Bethea, Chairman, Charter Commission 3 PROPOSED LANGUAGE CHANGES, DEPARTMENT OF FINANCE Change section (d ) to (e ) and amend (e ) to read: Be approved by the director of finance as to the availability of funds in the amounts and for the purposes set forth therein if they involve financial obligations of the county. Such contracts shall not extend beyond the term for which an appropriation to finance such obligations has been made, except as otherwise provided by this charter . This provision shall not apply to obligations for the procurement of utility services or price term agreements for which the total expenditure is unknown. Insert a paragraph (d ) to read: (d) Be approved by the Director of Personnel if the contract involves personal services . DATA PROCESSING Section 5-1 . 4 should be amended to include a paragraph (1 ) which reads : (1 ) Appoints members of the Data Processing Steering Committee, whose advisory responsibilities encompass coordination, long-range planning of computer needs , and establishing priorities of the Data Processing Division to ensure efficient and productive use of computers in the most cost-effective manner . DEPUTY FINANCE DIRECTOR Section 5-3 .3 (1 ) should read as follows: Where not in conflict with this charter, assume and perform all the duties and functions of the purchasing agent, the treasurer and the [ auditor ] controller of the county as provided by law, and for this purpose the director of finance shall be authorized to appoint a deputy, to assign and reassign such duties to any employee as he sees fit and to make internal administrative and organizational changes as he sees fit, subject to the approval of the mayor . Full funding of a deputy director of finance position will be included in the annual operating budget and salary ordinance. 326 . 3 Robert E. Bethea, Chairman, Charter Commission 4 PROPOSED LANGUAGE CHANGES, DEPARTMENT OF FINANCE OPERATING BUDGET Section 10-2 requires the mayor to submit various budget documents to the county council within ten (10 ) days after the close of the state legislature but not later than May 1 of each year . The Charter recognizes the importance of the legislative appropriation on the county budget and allows adequate time for council to review and approve the operating budget prior to June 30 . I am in agreement with this section of the Charter and recommend no changes be made. We appreciate the opportunity to present these proposed changes to the County Charter . Should there be any question, please feel free to contact me . BTM:as 00625 326 .4 Hilo Lagoon Centre LU r Y _ 101 Aupuni Street, Suite 325 Hilo, HI 96720 MEMORANDUM To: Mr. Barry T. Mizuno May 5, 1989 Director of Finance Date: _ Gerald Takase, Deputy Corporation Counsel/1� -rom: (J Transfer and Duly Appropriated Funds. wbject: You have asked for a summarization of the methods to transfer funds or appropriate funds in accordance with sections 10-9 and 10-11 of the Hawaii County Charter in the following instances: 1. Transfer to existina account within a department. No k resolution needed; the. mayor may transfer within an agency or executive agency. 2. Transfer of funds to a new account within a department. Resolution should be required to set up new account. 3 . Transfer of funds outside of department. Resolution required to transfer funds between departments. 4 . Appropriation of newly granted funds. All appropriations should be made by ordinance. You have further asked whether these transfers are in accordance with appropriations duly made as prescribed by section 10-11 of the charter. Our answer is yes, they would still be duly made appropriations. The key provisions of the charter in providing guidance to these questions are section 10-9 Appropriations, Reduction & Transfer, and section 10-11, Payments and Obligations Prohibited: Verifications and Penalties, which state, in part: "The mayor may at any time during the fiscal year transfer part or all of any unencumbered appropriation balance between classifications of expenditures or programs within an agency or executive agency; and if at any time the mayor so requests in writing, the council, by resolution effective immediately upon adoption, may transfer, part or all of any unencumbered appropriation balance from one agency or executive agency to another. But no transfer shall be 326 .5 -95-. Mr,'. Barry T. Mizuno Page 2 May 5, 1989 • made from appropriations for debt service or for estimated cash deficit; and no appropriation may be reduced below any amount required by law to be appropriated. " (Emphasis added. ) Section 10-9, Hawaii County Charter. • "No payment shall be authorized or made and no obligation incurred against the county except in accordance with appropriations duly made. No payment shall be made against any allotment or appropriation unless the director of finance first verifies that there is sufficient unencumbered balance in the allotment or appropriation and that sufficient funds therefrom are available to cover the claim concerned;. nor shall any obligation be incurred against any allotment or appropriation unless the agency head first verifies that there is sufficient unencumbered balance in the allotment or appropriation and that sufficient funds therefrom will be available to meet the obligation concerned when it becomes due and payable. Every obligation incurred and every authorization of payment in violation of the provisions of this charter shall be void. Every payment made in violation of the provisions of this charter shall be illegal; and all county officers who knowingly authorize or make such payment or any part thereof shall be jointly and severally liable to the county for the full amount so paid or received. If any county officer or employee knowingly authorizes or makes any payment or incurs any obligation in violation of the provisions of this charter or takes part therein, that action shall be cause for his removal. " (Emphasis added. ) Section 10-11, Hawaii County Charter. Using these charter provisions, the answers to your queries are provided. 1. Transfer to an existing account within a department. "The mayor may at any time during the fiscal year transfer part or all of any unencumbered appropriation balance between classifications of expenditures or programs within an agency or executive agency; . . . . " Section 10-9, Hawaii County Charter. This sentence clearly delineates the power of the mayor to transfer these funds. This reflects the sentiment of the charter 326 .6 ..95_ Mr,. Barry T. Mizuno Page 3 May 5, 1989 commission, which discussed at length restricting the power of the mayor to make intradepartmental transfers. However, it was felt best to leave the transfers flexible in order for the mayor to properly manage his resources. See charter commission minutes of July 3, 1979, pages 95-99 . Thus, the mayor still maintains authority over the intradepartmental transfers of appropriations. 2 . Transfer of funds to a new account within a department. Although no specific provisions of the charter addresses this question, it is our opinion that a resolution would be the best method of opening a new account to allow the transfer of funds within the department to that account. This differs from the last scenario in the fact that the account to which the funds would go had never been approved by the council. Hence, in the former question, funds are transferred into a known account for which expenditures were authorized, while in this instance to not go by resolution would allow funds to go into an account or purposes never brought before the council or to which the council may reject spending. It is our opinion that while the money appropriated by the council may be adjusted by transfer may change, entirely new accounts should not be funded without council approval. 3 . Transfer of funds outside of the department. This event is covered directly by the language in charter section 10-9 which states, in part: " (I)f at any time the mayor so requests in writing, the council, by resolution effective immediately upon adoption, may transfer, part or all of any unencumbered appropriation balance from one agency or executive agency to another. " The exact procedure of using a resolution to transfer funds between agencies is mandated by this section. 4. Appropriations of funds. The appropriation of public funds shall be by ordinance as prescribed in section 3-11(c) , Hawaii County Charter. All funds not previously appropriated or lapsed shall be appropriated by ordinance. -3- 326 . 7 Mme:. Barry .i Mizuno Page 4 a May 5, 198 Finally, we address that provision of section 10-11 which states, in part: "No payment shall be authorized or made and no obligation incurred against the county except in accordance with appropriations duly made. . . . " You have asked whether this provision requires that each appropriation is made for a specific item and therefore transfers would violate a duly made appropriation because that specific item was the only thing for which the dollars could be expended. Duly made appropriations are described in section 10-11 as those which the finance director has verified there are sufficient unencumbered funds, along with verification from the agency or department head. In addition, these funds were duly appropriated by ordinance as described in section 3-11(c) . The specific question then is can a transferred fund still be considered a duly made appropriation? Our answer is yes . Since the charter specifically allows for the transfer of appropriations in section 10-9, then it was anticipated that a proper method of handling an appropriation was by transfer. Thus, the transfer of funds does not violate its duly made status and is permissible by the terms of the charter. GT:jn APPROVED: ICD I . MIY OTO Corporation Counsel 326 . 8 -95- BERNARD K. AKANA, MAYOR LYNN C. Z . MAUNAKEA:;: DIRECTOR ��., ; ,.. DEPARTMENT OF RESEARCH AND DEVELOPMENT w COUNTY OF HAWAII•25 AUPUNI STREET• HILO,HAWAII 96720•TELEPHONE(808)961-8366 �O,, M04J April 26 , 1989 Mr . Robert E. Bethea , Chairman and Members of the Charter Commission Hawaii County Charter Commission 101 Aupuni Street , Suite 235 Hilo Lagoon Centre Hilo, HI 96720 Dear Mr . Bethea and Members of the Charter Commission: SUBJECT: COUNTY OF HAWAII DEPARTMENT OF RESEARCH AND DEVELOPMENT In 1968 the County Charter (Article V, Chapter 5 , County Charter , County of Hawaii ) established the Department of Research and Development . The County Charter states ; "The director of Research and Development shall : a. Collect and develop data necessary for managerial and legislative decision making, and program and policy-making . b . Provide staff leadership for public and private development programs , enterprises and plans including economic , social and cultural proposals , which enhance improvement of the county community . c . Coordinate informational and regulatory knowledge of all federal and state grant-in-aid participation programs which affect 'the County . " (Section 575 . 3 ) The Charter ' s broad scope of powers , duties , and functions have permitted the County Administration to adapt the role of this agency to align with its direction and policies . The early years of Research and Development included activities that through time were spun-off to appropriate County departments . The 1968-69 Annual Report for Research and Development included for example , the development a housing program, and the development of the Keauhou Sewer and Kalapana Water Project . ATTACHMENT C Pg. 1 of 10 327 Mr . Robert E. Bethea , Chairman and Members of the Charter Commisssion Page 2 April 26 , 1989 In the 70 ' s the department continued to participate in housing related projects such as the coordination of the State Housing Fair and the Pahala Federal Housing Project . It also initiated studies on the County transportation system and studies on aquaculture and ocean thermal energy . In addition to all the aforementioned of course , were the more traditional agricultural and business related ated concerns for the Big Island . Through the 1980 ' s the mission of Research and Development encompassed five major areas of responsibilities . They are : Tourism Promotion Programs Agriculture, research and market promotion New Industry and Industry Development Special Events and Activities Data Collection and Information Center In keeping with these five major areas the 1989-90 goals and objectives for the department are as follows : TOURISM - To provide continued support of the tourist industry . To promote the Big Island through trade shows and seminars. in conjunction with Hawaii Visitors Bureau, American Airlines and others . To promote the Big Island through a brochure continued to be jointly sponsored and produced by Hawaii Visitors Bureau and the County of Hawaii . AGRICULTURE - To support diversified agriculture . To promote diversified agriculture through the co-sponsorship of a Big Island Ag Product brochure with Hawaii Visitors Bureau . Pg. 2 of 10 328 Mr . Robert E. Bethea, Chairman and Members of the Charter Commission Page 3 April 26 , 1989 To promote diversified agriculture through the co-sponsorship of promotional events . To promote diversified agriculture by filling the existing vacancy with an Economic Specialist who has background in Agriculture . NEW INDUSTRY - BUSINESS SUPPORT ACTIVITIES - To promote the development of new industry and advocate for existing industries . A. Alternative Energy Development 1 . To establish an advisory commission on alternative energy for the purpose of and encouraging energy conservation and self-sufficiency . 2 . To investigate the possibility of developing an energy conservation program/plan for the County . 3 . To hire a geothermal (alternative energy consultant ) for public education purposes . 4 . To continue to work with HIEDB on Small Business Incubator . 5 . To continue to develop EEZ for Hawaii County . 6. To represent Hawaii County on the Air Cargo Distribution Center Task Force. B. Film Industry - To promote the development of film industry 1 . To hire a permanent film and tourism coordinator to encourage the development of a local film industry. 2 . To co-sponsor a Location portfolio to assist in the promotion of the film industry . Pg. 3 of 10 329 I _ Mr . Robert E. Bethea, Chairman and Members of the Charter Commission Page 4 April 26 , 1989 3 . To develop a video for use as a promotional tool highlighting the resources of the Big Island. SPECIAL EVENTS (4 to 5 a year ) - To promote special events which highlight the County as a unique place to live, visit and do business . 1 . To promote and further develop the Hilo Mardi Gras . 2 . To promote the Merrie Monarch and International Billfish Tournament . OTHER 1 . Municipal Reference Center - To continue to catalog and classify - assign call numbers and subject headings . Provide monthly list of departmental library acquisitions to be distributed to County departments and agencies to inform them of new library additions . To provide reference to R&D staff , County personnel and other government agencies , and the general public . 2 . Legislative Liaison - Advocacy legislation beneficial for the County of Hawaii . The Department ' s broad enabling provision are the source of its flexibility and adaptability ; however , it has also led to confusion and debate regarding its objectives and programs . The Department has evolved over the years into the economic development agency of the County . This function is certainly within the scope of the Department ' s mission and it has received the most public attention . However , economic development is not the Department ' s sole purpose, nor should it be according to the Charter . Pg. 4 of 10 330 Mr . Robert E. Bethea , Chairman and Members of the Charter Commission Page 5 April 26 , 1989 PERSONNEL STATUS Aside from a Director , Deputy Director and Private Secretary , other staff positions include the following : g Economist - responsible for planning and conducting economic planning and/or development studies ; analyzes , evaluates and interprets economic data; and performs other duties as required . Economic Development Specialist III - a newly reclassified position ; formerly an Agriculturist . This position plans , organizes , conducts research and prepares analyses to develop product promotional and industrial expansion programs ; makes recommendations on all mainland and foreign marketing ; identifies and develops opportunities for the expansion of existing business and coordinates the promotion of new businesses ; assists in the development of marketing organizations and participates in the promotion of effective relationships with retailers , wholesalers and others ; and performs other duties as required . ( Individual who was sought and hired is qualified for this position in addition to having a background in agriculture) . Resource Materials Specialist - responsible for developing and maintaining resources materials consisting of books , publications , government documents and other materials ; classifies and catalogs resource materials ; provides reference services to county personnel and other interested individuals or agencies ; and performs other related duties as required . Account Clerk - responsible for developing and maintaining Department ' s accounting and recordkeeping system, preparing requisitions , petty cash vouchers , travel reports , etc . , coordinates repair and maintenance of equipment , printing and binding, travel , subsistence and mileage accounts . For approximately 10 years the Department was also served under contract by a consultant who provided services in the area of film, visitor assistance , and special events support . This contract expired March 31 , 1989 . Research and Development is currently working with the Personnel Department to create the permanent position of Film/Tourism Coordinator . 331 Pg. 5 of '10 Mr . Robert E. Bethea , Chairman and Members of the Charter Commission Page 6 April 26 , 1989 DEPARTMENT OF RESEARCH AND DEVELOPMEMT' S BUDGET @Five (5 ) Year Periods The pages that follow represent Department of Research and Development ' s budget summaries across at five year periods . As you can see , the Department ' s budget has increased over the years with the exception of a $300, 000 cut in Visitor Promotion in 1987-88 . Pg. 6 of 10 332 DEPARTMENT: RESEARCH AND DEVELOPMENT FISCAL YEAR 1969-1970 DESCRIPTION APPROPRIATED 1968-1969 CLASSIFICATION OF EXPENDITURES : Salaries and Wages $ 31, 678 Contractual Services 45,940 .Materials and Supplies 900 Other Charges 700 Equipment - TOTAL $ 79 , 218 333 Pg. 7 of 10 DEPARTMENT: RESEARCH AND DEVELOPMENT FISCAL YEAR 1975-1976 DESCRIPTION APPROPRIATED 1974-1975 CLASSIFICATION OF EXPENDITURES : Salaries and Wages $104, 957 Other Current Expenses 59 , 059 Equipment 535 Utilities - Agriculture Research & Development 59 , 500 3-6-8 Commemorative Celebration Task Force 7 , 000 Tourism Promotion 100, 000 County Advisory Committee on Tourism 500 Natural Energy Research Center at Ke-Ahole 50 , 000 TOTAL $381, 551 334 Pg. 8 of 10 1979-80 Salaries & Wages 135 , 352 Contractual Services 33 , 537 Materials & Supplies 3 , 100 Subscriptions & Memberships 1 , 900 Agriculture R&D 33 , 000 Tourism 75 , 000 Big Island Sugar Steering Committee 4 , 000 Manganese Nodule 17 , 250 Alternate Energy 115 , 000 Ag Waste Study 252000 TOTAL $443 , 139 1984-85 Salaries & Wages 183 ,719 Contractual Services 67 , 138 Materials & Supplies 4 , 394 Membership & Subscriptions 2 , 298 Computer Equipment 4 , 400 Agriculture R&D 61 , 000 Tourism Promotion _3501_000 TOTAL $672 , 949 335 Pg• 9 of 10 1988-89 Salaries & Wages 212 , 261 Contractual Services 32 , 836 Materials & Supplies 3 , 070 Subscriptions & Memberships 2, 300 Agriculture R&D 15 , 000 Tourism Promotion 224 , 000 New Industry 14000 TOTAL $512 , 467 Pg. 10 of 10 336 • BERNARD K. AKANA 41,0 '. • x 11E +c�I'�:''�;�;e :. JANICE A. BIBB MAYOR DIRECTOR err oF•NpN DEPARTMENT OF LIQUOR CONTROL COUNTY OF HAWAII HILO LAGOON CENTRE 101 AUPUNI STREET,SUITE 230 HILO,HAWAII 96720 April 24, 1989 TO: Charter Commission FROM: Janice A.. Bibb, Director SUBJECT: Department of Liquor Control The Department of Liquor Control acts within the jurisdiction and powers granted in Article VII of the Hawaii County Charter and Chapter 281, Hawaii Revised Statutes.. It has jurisdiction on all matters relative to the importation, manufacturing, sale and consumption of intoxicating liquors.. Exhibit A, as attached, is the department's functional chart. It incorporates Charter provisions indicating a built-in system of checks and balances in the department's organization, as herein discussed. The liquor commission, as a legislative body, is empowered to enact rules and regulations having the force and effect of law., Its rules and regulations establish the guidelines under which all licensees operate., In its role as a regulatory body, the Commission hears all applications for a liquor license which must be filed in compliance with statutory requirements.. The liquor control adjudication board, as a judicial body, is empowered to hear violations of liquor laws and upon conviction may impose penalties of a reprimand, a fine, suspension or revocation of license.. Hearings are similar to that of a court proceeding although the board is not bound by the strict rules of evidence.. The Commission and Board are advised by the Office of the Corporation Counsel. Members have powers to administer oaths, to subpoena witnesses and records and to examine witnesses as possessed by circuit court. The director, in the executive role, administers duties necessary to carry out commission and adjudication board decisions, state and county liquor laws, and county administration's directives. • ATTACHMENT D 337 Pg. 1 of 10. LIQUOR COMMISSION LIQUOR CONTROL ADJUDICATION BOARD Charter Commission -2- April 24, 1989. ': In our regulatory function, our staff, through the licensing division, compiles all information necessary to file an application for a license for submittal to the Commission; We act as the central agency in assuring that licensees comply with the requirements of government agencies. Interagency cooperation exists with the Department of Health and it Noise and Irradiation Division, Public Works, Planning.Department, IRS and State Tax Offices, Bureau of S Alcohol, Tobacco and Firearms, State Department of Transportation Harbors Division, and the Hawaii Redevelopment Agency: S . Our enforcement division conducts checks of all establishments and have rights to immediate entry and access to records of.a licensee.. In matters of violations of the liquor laws, the department issues its. Complaint and Accusations for a hearing before the Adjudication Board. By statute, employees are prohibited from aiding in the election or defeat of any candidate for public office. The department is self-funding: Revenues are obtained from licensees. in the form of an annual fee.. By statute we are restricted in use of ourfunds'. to costs or expenses directly related to operations and administration; Exhibit B is a.copy of our 1987-1988 Annual Report for your review and file. PROPOSALS FOR CONSIDERATION RELATIVE TO CHARTER PROVISIONS: Article XIII, Section 13-4: Boards and Commissions: : . . (d) No member whose term has expired shall continue to serve on such. board or commission; PROPOSAL: A member whose term has expired may continue to serve on such board or commission for a period.not to exceed 90 days after the expiration of said term. Justification: Thevacancy(ies) created.at the end of,the year cause . ' concern in.reaching a quorum. Practical experience has indicated that boards have one or two absences a meeting: With the vacancies the problem of quorums ' is magnified. The extension of term should be sufficient to allow for the nomination and confirmationprocess for filling a vacancy. This will assure continued services to our citizens; PROPOSAL: (1) The jurisdiction and powers of a board or commission shall be limited to the provisions established by this charter. • Justification: Boards and Commissions generally function as hearings ' officers in accordance with specific jurisdictions outlined in the Charter and the Hawaii Revised Statutes, where applicable. . Members are not involved in the daily operations of the department nor do they conduct administrative duties. This proposal is presented as a matter of clarification that a distinct line exists between the department's..and the member's.duties and responsibilities.. Pg. 2 of .10. 33,8 JAB:mnk Encs: FUNCTIONAL CHART DEPARTMENT OF LIQUOR CONTROL COUNTY OF HAWAII Liquor Control Adjudication Board Liquor Commission 1. Adopt Rules and Regulations. 1. Adopt Rules and Regulations. 2. Hear and determine complaints of violations of 2. Grant, renew, refuse liquor licenses. liquor laws and rules and regulations. 3. Appoint, remove Director. 3. Impose fines or punishment. I I W ADMINISTRATION W • kr,� DIRECTOR W 1. Administrative Head 2. Provide services to: 0 a. Liquor Commission F' b. Liquor Control Adjudication Board N 3. Fiscal 0 4. Annual Report 5. Licensing and Enforcement 6. Personnel-recruit, train, remove ENFORCEMENT DIVISION - --- ---ADMINISTRATIVE SERVICE DIVISION- - - - - - - - - - - - - -LICENSING DIVISION Supervising Liquor Control Investigator Secretary-Administrative Assistant Licensing Investigator III 1. Responsible for planning, coordinating 1. Assist Director in administrative matters and liaison to related 1. Responsible for applications for liquor activities relative to enforcement of statutes agencies. licenses. and rules of commission within liquor 2. Assists Director in the preparation of reports,analyses and 2. Assists in preparation and maintenance licensed establishments. studies. of applicant's file. 2. Supervise inspection and investigative function, 3. Prepares and maintains applicant's file. 3. Responsible for inspector's report on prepare work schedule, assign follow-up 4. Asssists in licensing for completion and compliance to statutory application to Liquor Commission. investigations. requirements. 4. Assists in compiling statistics and 3. Resolve personnel problems,determine training 5. Compiles current issues relative to intoxicating liquor and activities data. needs. tracks all legislative bills. 5. Assists in final inspections. 4. Compile statistics and activities data. 6. Assists in the drafting and updating of Commission Rules 6. Reviews, updates and conducts manager's 5. Prepare periodic reports on work accomplishments. and Regulations. examinations. 6. Public Relations. 7. Prepare, main files for applications/renewals for liquor 7. Testify at Commission/Board hearings. 7. Field investigations. licenses. 8. Responsible for special licenses. 8. Testify at Commission and Board hearings. 8. Fiscal records,reports,payroll. I 9. Personnel data. Liquor Control Investigator II 10. Prepare periodic reports to county agencies 1. Inspect licensed premises,including vessels,for 11. Correspondence to licensees. conformity to liquor laws. 12. Fiscal reports of licensees. 2. Investigate violations of laws or complaints, noise violations, etc. I • 3. Inform, interpret liquor laws. Hearings Reporter 4. Assists in preparation of report on application 1. Provides all clerical services to the Commission for liquor.licenses. and Liquor Control Adjudication Board-agenda, minutes decisions,etc. 5. Conduct final inspection of premises to be 2. Responsible for department files;assists administrative licensed. assistant in processing forms,license applications. 6. Testify at Commission/Adjudication Board hearings,serves citations,complaints and 3. Prepares routine acknowledgments,records, maintains permits accusation, and subpoenas. and various licensee data. 4. Accepts payment for fees,writes, receipts, prepares deposit to County Treasurer's Office. 5. Verifies voter registration on protests to applications as required by law. 6. Responsible for records of liquor sales to Hawaii wholesalers as required by law. 7. Assists in preparation and issuance of license renewals. 8. Assists with special licenses. .--Clerk—Typist 1. Provide routine clerical services including transcription of investigator's reports. • 2. Registers employees of licensed premises and maintains files. 3. Assists in preparation and maintenance of records,activities of the enforcement division. 4. Assists in recording of and maintenance of various licensee data. 012 • 0 rh I-J C7 W /Z 2..3 �(� 3/17/u DEPARTMENT OF LIQUOR CONTROL COUNTY OF HAWAII, STATE OF HAWAII Annual Report for 1987-1988 Section 7-3 .2 of the County Charter, County of Hawaii, establishes the liquor commission consisting of seven members who shall be representative of the geographical areas of Puna, Kau, Kona, Kohala, Hamakua, and Hilo. The liquor commission has the authority to adopt rules and regulations having the effect of law in the county and to carry out the provisions of the liquor laws of the state; grant, renew or refuse applications for liquor licenses; and has such other powers and duties as may be provided by law, not in conflict with charter provisions . • LIQUOR COMMISSION DISTRICT TERM EXPIRES Luana Lincoln Chairperson Kohala 12-31-90 Helen Yamada Vice Chairperson Puna 12-31-91 Kiyotoshi Ozaki Member Hilo 12-31-88 Daniel Wela Member • Hilo 12-31-88 Gary Aganus Member Hamakua 12-31-89 Leinaala Enos Member Kau 12-31-92 . James Beimborn Member Kona 12-31-92 Section 7-3 .3 of the County Charter, County of Hawaii, provides that there shall be a liquor control adjudication board consisting of five members . The adjudication board shall hear and determine all complaints regarding violations of the liquor control laws of the state or of the rules and regulations of the liquor commission and shall impose fines or punishment as provided by law upon conviction of a violation. LIQUOR CONTROL ADJUDICATION BOARD TERM EXPIRES Helen Carlson Chairperson 12-31-88 Richard Koneck Vice Chairperson • 12-31-91 Melvin Kaneshiro Member 12-31-89 Dolores Oskins Member 12-31-90 Rodney Wong Member 12-31-92 341 Pg. 5 of 10 J Section 7-3 . 4 of the Charter provides that the director of the department shall be the administrative head of the department, provide clerical and administrative services for the commission and the adjudication board and investigate complaints of the liquor laws and rules and regulations of the commission. DIRECTOR Janice A. Bibb ENFORCEMENT OFFICE LICENSING Abraham Mahuna Mary Ann Katayama Harold Otsu Supervising Investigator Sec. -Admin. Asst. Investigator III Tsutomu Ueno Ann Ebesuno Theodore Wong Gail Fujimoto Albert Takayama Glenn Hudman William Loeffler Genevieve Moller Edwin Freitas Vacant Position • Pg. 6 of 10 342 • LIQUOR COMMISSION Meetings : 12 (13 ) Public Hearings : 4 Applications processed: Renewal 302 Regular 54 • Special 68 Additional vessel 65' Licensees TOTAL HILO KONA KOHALA PUNA HAM KAU Wholesale General 5 3 2 Wholesale Beer/Wine 7 5 2 Hotel 9 2 5 2 Cabaret 0 Club 4 2 1 1 Tour Vessel 7 6 1 Dispenser General 106 41 41 13 5 2 4 Dispenser Beer/Wine 23 8 10 3 2 Dispenser Beer 1 1 Retail General 113 37 29 19 12 8 8 Retail Beer/Wine 27 13 7 2 5 Population 111,755 46 , 473 26, 783 10, 176 18, 397 5,314 4, 612 (DPED--1986 ) Pg. 7 of 10 343 LIQUOR CONTROL ADJUDICATION BOARD Meetings : 6 Public Hearings : 1 Cases : 54 Violations : Management failures 43 Stock transfers 3 Minors 6 Class of license 2 Disposition of violations : Dismiss 2 Reprimand 1 Fines 45 10, 575 . 00 Suspension 2 10 days--stayed Pending 1 Pg. 8 of 10 344 DEPARTMENT OPERATIONS Citations 71 Liquor Law Clinics 3 Final Inspections 33 Manager Examinations 366 Filed Reports 369 Employee Registration 1,850 Inspector's Reports : License applications . 54 Other related 26 Sick Leave 843 hours Overtime Earned 250 Workers ' Compensation 1 1987-88 FISCAL REPORT Projected Budget 623,000 .00 Actual Revenues 617,190.32 Actual Expenditures 538, 885.73 1987-88 Reserve Balance • 78,304.64 Total Reserve Fund 215,386 .64 345 Pg:I 9 of 10 SUMMARY OF GOALS AND OBJECTIVES FOR FY 1987 1988 GOAL: To review and update rules and regulations of the Liquor Commission. The Commission conducted public hearings on revisions to the entire rules and regulations in September, November, and December, 1987 . The Commission adopted amendments to its rules in December, 1987, which became effective on January 3 , 1988 . GOAL: To review and update rules and regulations of the Liquor Control Adjudication Board. A public hearing on revisions to the Board rules was held on April 14 , 1988 , and will be effective 10 days after receipt by the County Clerk. GOAL: To increase awareness of liquor laws . Conducted clinics with approximately 135 participants . GOAL: To provide alcohol education and awareness to the community. In cooperation with Honokaa High and Elementary School, our department provided the school with the FLI Education Curriculum. The school will conduct the program and rate its effectiveness . Should this curriculum prove satisfactory to school needs it will be offered to other schools . GOAL: To provide in-service training. The following training was provided. 1. Department of Commerce and Consumer Affairs . 2 . State Health Department Noise and Irradiation Division-- certificate received by two investigators . 3 . Department Workshop on rules and regulations and • amendments to State law; office procedures 4 . Commission and Board Workshop sponsored by County 5 . Managing Multiple Priorities 6 . Pre-retirement Workshop 7 . BATF Seminar on manufacturers 8 . Telephone Courtesy 9 . Workshop for Investigators--statewide 10 . Workshop on Workers ' Compensation 11. State Health Department--health regulations 12 . Civil Service Workshop on Form Federal I-9 13 . Interviews 14 . Labor Relations 15 . Liquor Commission--State Conference 16. Liquor Commission--National Conference of state Liquor AdministratorB 346 Pg. 10 of 10 • Bernard K.Akana Mayor "*„--;:e::(': „--;: ::(':H41 i Barry T.Mizuno Department of Finance Director =___Ty 25 Aupuni Street,Rm.118 • Hilo,Hawaii 96720 • (808) 961-8234 AUGUST 31, 1989 TO : ROBERT E . BETHEA, CHAIRMAN AND MEMBERS OF THE CHARTER COMMISSION FROM: BARRY T. MIZUNO, DIRECTOR OF FINANCE 1/i' -ti---t SUBJECT : TRANSFERS AND BUDGET SUBMISSION DEADLINE • The Charter Commission has been asked to consider changes in two provisions which are vitally important to the budget process of our county: transfers between accounts by the Administration, and the deadline for submitting the budget to Council . I wish to restate the importance of preserving these provisions, with clarification , and to add supporting facts and figures for your information. TRANSFERS The mayor 's ability to transfer funds unilaterally within an agency or department has been the focus of much discussion. Reference has been made to Maui County' s charter , which requires a resolution for transfers within a department . While this provision appears to be very restrictive on the Administration, a review of Maui ' s budget format reveals that the provision is not as restrictive as it seems . We examined Maui ' s budget ordinance and discovered that they have only 163 operating expenditure accounts appropriated, as compared to our county ' s 1 ,699 accounts. Their budget format has expenditures appropriated into three general classifications: ( 1 ) salaries and personal services , (2 ) other current expenditures , and ( 3 ) equipment . These expenditure classes are further broken down between current and expansion services . With fewer accounts appropriated, the need to transfer is lessened. 346. 1 Robert E . Bethea, Chairman, Charter Commission 2 TRANSFERS AND BUDGET SUBMISSION DEADLINE For comparative purpose, we enclose as Exhibit I the fire department budgets of the two counties to demonstrate the difference in budget formatting. As can be seen, Maui ' s fire department has only 7 appropriation accounts while Hawaii ' s has 93 . An even greater difference exists between the two jurisdictions ' police department budgets with Maui ' s 7 versus Hawaii ' s 288 accounts appropriated. The annual budget is an essential tool for fiscal management . Adequate details are essential for good management . Removing the mayor ' s ability to make transfers within an agency or department would be contrary to Charter intent and would make the administration of and compliance to the budget an operational nightmare. Allegations have been made that the Administration abused its transfer authority in the first month of the new fiscal year . Exhibit II has been prepared to summarize all transfers made in July, 1989 . We have also made brief explanation of these transfers . It is quite apparent that none of the adjustments changes Council policy or direction -- all are merely administrative corrections . BUDGET SUBMISSION DEADLINE The present Charter requires the Administration budget to be submitted to Council no later than May 1 . We contend that accelerating that date to March 1 would be a serious mistake. There are two compelling reasons to maintain the May 1 deadline: o State Legislature ends in the second half of April . o Real property Certification of Assessed Valuation is submitted on April 19 to the director of finance and on May 1 to Council . Reference has been made to Maui County for comparison, where the budget submission date is March 15 . A review of Maui ' s situation illustrates the problems inherent in an earlier date. This early submission date forces the Administration to estimate ( 1) the next taxable real property value and ( 2) the state grants-in-aid. As in the other counties , real property taxes and the state grants make up the largest source of revenues to fund Maui County' s operations. Recently we reviewed Maui 346 .2 Robert E. Bethea, Chairman, Charter Commission 3 TRANSFERS AND BUDGET SUBMISSION DEADLINE County's 1989-90 budget as submitted by the mayor and compared it to the budget approved by their Council . We noted that the mayor 's revenue estimates for real property taxes and state grants-in-aid had been understated by 410 .5 million. Hawaii County is much more sensitive to budget variations than is Maui County. Had our Administration been mandated to submit a budget to Council on March 1 this year instead of May 1, a much leaner budget would have been submitted, with reduced services and severe cutbacks in every department ' s spending. When final grant-in-aid and property tax revenue projections were made in late April , a revised budget would have had to be submitted and the review process repeated . The May 1 deadline allows the administration the time needed to allocate available revenues logically and to balance the budget. We believe it would be a terrible waste of resources to hold budget hearings with each department as early as March 1 , only to find that significant changes on April 20 require repeat hearings . Section 10-2 of the Charter states , in part, that an operating budget will be submitted " . . . within ten (10 ) working days after the close of the state legislature but not later than May 1 of each year . . . " The significant importance of establishing the state grant-in-aid amount prior to submitting the budget to Council was thus recognized many years ago . It remains a valid determinant. We urge you not to change this provision of the Charter. We hope that this information is helpful to the Commission. We continue to maintain that Charter provisions in these two areas -- transfers and the budget submission deadline -- remain valid and only require clarification. If I may be of any assistance or if you have further questions, please do not hesitate to call me. BTM :as encl . 00815 cc w/o encls : Bernard K. Akana, Mayor Susan J. Labrenz, Managing Director Gregory R. Mooers, Deputy Managing Director Finance Division Chiefs 346 .3, Robert E. Bethea, Chairman, Charter Commission 4 TRANSFERS AND BUDGET SUBMISSION DEADLINE EXHIBIT I MAUI COUNTY FIRE DEPARTMENT BUDGET Department of Fire Control : a . Salaries and Personal Services : ( 1) Current Services ( a) 1 P/FT Fire chief EPP $ 53 ,928 (b) 1 P/FT Deputy fire chief EPP 47 ,196 (c ) Other personnel 4 ,652 ,084 Provided, that disbursement is limited to salaries and premium pay for 150 P/FT positions . ( 2) Expansion Services ( a) Provided, that disbursement is limited to salaries and premium pay for the following positions: 2 P/FT Fire captain ( Lanai) SR-24 2 P/FT Fire fighter III SR-20 b. Other Current Expenditures 464,975 c . Equipment: ( 1 ) General 443 , 500 ( 2 ) Expansion 604 ,500 HAWAII COUNTY FIRE DEPARTMENT BUDGET ( FOLLOWING SIX PAGES) 346 .4 • 1 . 5/30/89 ESTIMATED FUND 010 GENERAL;FUND COUNTY OF HAWAII 70 EXPENDITURES DEPT 221 FIREYEAR 1989-90 PAGE BASE.EL ACCOUNT 1987-88 1988-89 . 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 • T; © OBJ DESCRIPTION ACTUAL BUDGET ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE _ ��SL3�A 11827U6=3:17 2'. =7-666666L76776 - i- -L-----Liii--i----=7625:=CS--IIT.--Y=77,79276=7Q67L==Sl-iC$iii08125222512 C 6-- ; e�r 5221 FIRE PROTECTION 1 5221.01 FIRE PRCTECTION-S&W • 011 REGULAR S8W " 5,633,447 . 6,270,354 6,76.8,598 6,768,588 6,768,588 6,768,588 6,768,588 6,768,588 021 OVERTIME S86 526,902 675,275 841,440 841,440 841,•440 841,440 841,440 841,440 " 099 MISCELLANEOUS S&W 189,478 225,000 318,720 .318,720 318,720 318,720 318,720 318,720 TOTAL **** FIRE PROTECTION-S&W 6,349,827 7,170,629 1,928,748 7,928,748 7,928,748 7,928,748 7,928,748 7,928,748 . 5221.02 FIRE PROTECTION-OCE :` ' 101 POSTAGE 3 FREIGHT 830 1,800 • 1,972 ' 2,000 2,000 2,000 2,000 2,000 • bill 102 TELEPHONE. 8 TELEGRAPH 22,539 24,300 36,000 36,000 36,000 36,000 36,000 36,000 4 ,000 103 JANITORIAL SERVICES . 3,539 4,000 4,800 4,800 4,800 4,800 ,600 4n,. 104 TRAVEL 1,946 3,680 4,420 . 4,620 4,820 5,020 5,220 5,420 WrKj 106 PRINTING AND BINDING 467 820 520 720 1,600 800 1,680 "i 109 REPAIRS TO EQUIPMENT 73,24] 74,000 ' 82400 82,500 83,000 83,500 84,000 84,500 ldik111 9ENTAL/LEASE OF EQUIP 202,316 202,763 55,878 23,500 24,000 24,500 25,400' 25,500 . 112 MILEAGE 4 ALTO ALLOWANCE 756 400 400 400 400 400 ' 113 WATER I GAS 9,042 8,810 12,500 12,500 12,700 12,700 12,900 12,900 '` 114 ELECTRICITY 51,591 61,000 63,000 64,000 64,000 65,000 65,000 65,000 ® 115 MISC. CONTRACT SERVICES 139,9'90 13,000 64,800 15,000 15,000 145,000 215,000 15,000 1 216 NURSERY-BOTANICAL-HORTIC 1,508 1,625 2.325 2,400 2,400 2,400 2,500 2,500 217 CLEANING/SANITATION SUPP 17,792 15,075 ' 19,460 20,000 20,000 20,500 20,500 21,000 /" 75,753 • 80,550 83,470 84,500 85,000 85,000 85,000 85',000 218 MED-D 4 AL- OSF IN 9,000 13,150 13,500 14,000 14,000 14,500 14,500 219 MED-DENTAL-NOSF-INST SUP 1C,932 220 PROVISIONS (MEALS) 103,263 93,000 142,947 143,000 143,000 143,000 145,000 145,000 225 EDUC-RECR-SCIENTIF SUPP 2,863 1,870 17,870 3,000 3,000 • 3,000 3,000 3,000 .- 227 COMPUTER 6 OFFICE SUPP 1,980 2,055 6,330 2,900 2,900 3,000 3,000 3,000 229 BLDG 5 CONSTR MATERIALS 4,919 2,500 4,000 4,000 4,000 4,200 4,200 4,200 10 235 MISC MATERIALS & SUPP 5C,943 44,900 69,000 69,000 69,000 69,000 69,000 69,000 I 337 SUBSCRIP 3 MEMBERSHIP 1,471 1,575 1,688 1,688 1,688 1,688 1,688 1,688 340 EMPLOYEE AWARDS 400 560 560 560 560 560 1 : 341 MISC. CHARGES 654 55,900 75,400 75,400 75,400 75,400 75,400 75,400 TOTAL **** FIRE PROTECTION-OCE 748,334 703,523 762,540 665,988 669,268 801,468 876,348 677,186 5221.10 FIRE PROTECTION-EQPT ' 449 MOTOR VEHICLE 240,008 78,000 981,000 60,000 0 450 OFFICE EQUIP-FIXT-FURN 5,713 4,100 3,660 5,000 W 456. CONSTR 8 REPAIR EQUIP „r}' _ - 457 FIRE STATION EQUIPMENT 4,672 1,570 15,700 20,000 • vi °` 458 RESCUE EQUIPMENT 500 43,850 50,000 459 HOSP S INST EQUIP 4,223 • 480 MISC.. EQUIPMENT • 45,324 33,250 52,900 100,000 TOTAL **** , 'Z FIRE PROTECTION-EQPT 299,940 118,320 1,097,110 235,000 . 1 . 0 5221.65 RENTAL OF XEROX COPIER • ii . 115 MISC. CONTRACT SERVICES • 509 ,. a : TOTAL **** '¢ ') RENTAL OF XEROX COPIER 109 5221.66 RADIO MAINT CONTRACT ) 115 MISC. CONTRACT SERVICES 1,539 • 1 ,x 5/30/89 E S T I M A T E D FUND 010 GENERAL FUND COUNTY OF HAWAII '71 EXPENDITURES DEPT 221 FIRE YEAR 1989-90 PAGE b61 � BASE.EL ACCOUNT 1987-88 1989-90 1990-91 1991-92 1992-93 1993-94 1994— 095 OBJ DESCRIPTION ACTUAL BUDGET ESTIMATE ESTIMATE ESTIMATE • ESTIMATE ESTIMATE ESTIMATE s==a=sa=s ==.m7=sa.,aga=.s=s_o==.. �.'#;; TOTAL **** 1,539 ' RADIO .MAINT CONTRACT • • 5221.68 RUBBISH HAULING 179 z,Ft 115 MISC. CONTRACT SERVICES • J TOTAL. **** 179 • RUBBISH HAULING •1 ;w'p1 5221.73 OXYGEN REFILLS 555 $ ^}• 115 MISC. CONTRACT SERVICES TOTAL **** 555 OXYGEN REFILLS . k *a 5221.74 SERVICING EQUIPMENT •77 • ' • _ 115 MISC. CONTRACT SERVICES TOTAL **** • j ?r SERVICING EQUIPMENT 77 TOTAL ROTE* I " L' FIRE PROTECTION 7,400,960 7,992,472 9,788,398 8829.736 8•598.016 81730.216 8,805,096 8.605936 1110 cN • • . , 0 • .=t. , .. • • • •7 • 'z j • J ...-.... F , 5/30/89 E S T• I M A T E D FUND 010 GENERAL FUND COUNTY OF HAWAII 72 EXPENDITURES'' ' DEPT 221 FIREYEAR 1989-90 PAGE gl) ' • • BASE.EL ACCOUNT 1987-88 1988-89 1489-90 1990-91 1991-92 1992-93 1993-94 1994-95 OBJ DESCRIPTION • ACTUAL • • BUDGET ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE EMMMUSMCMtm Smea 2L:MMMMMMMMMMM mLsaLooe:aS =LLLLLLsassQSL LLSLLaSCUMULSLS LQasaM..=1 ZZ= 5224 FIRE PREVENTION • • 5224.01 FIRE PREVENTION-S&W y•. 011 REGLLAR SEW 153.398 162.94.2 176.280 176,280 176,280 176.280 176,280. 176,280 021 OVERTIME SEW 3,250 3.100 3,710 3.710 3,710 3,710 3,710 3,710 j © 099 MISCELLANEOUS SEW CM 375 400 1,075- 1,075 1,075 • 1.075 '1.075 1,075 TOTAL **** PillFIRE PREVENTION-SEW 157,043 166.442 181.065 181.065 181,065 181.065 181,065 181,065 • 5224.02 FIRE PREVENTION-OCE ' 101 POSTAGE & FREIGHT 500 250 400- 400 400 425. 425 450 F'`< 104 TRAVEL 1,190 3,050 . 2.985' 3,000 3,500 4,000 4.500 5,000 _ 106 PRINTING AND BINDING •550 . 400 • 400. ' 450 450 500 500_ 500 • 109 REPAIRS TO EQUIPMENT 175 150- 250 • 300 300 300 300 1 112 ;MILEAGE S ALTO ALLOWANCE . 261 SCO 350 4C0 400 420 • 430 450 4 -4 + • 115 MISC. • CONTRACT SERVICES 1,783 1,050 1.550 2,100 2,150 2,200 2,250 2,300 225 EDUC-RECR-SCIENTIF SUPP 1,173 1,350 , 1,325 1,375 1,400 1,575 1,600 1,775 • 227 COMPUTER & OFFICE SUPP 98 100 . 75 100 • 100 100 100 100 235 MISC MATERIALS & SUPP 600 '5C0 700• 1,100. 1,100 1.200 ' 1,200 1,200 337 Si1ASCRIP P NEMEERSHIP 196 285 • 285• 300 300 350 ' 350 350 `t"••+h 340 EMPLOYEE AWARDS 80 80 ' 341 MISC. CHARGES 30 150 ' 180 • 180 ' .180 • 200 200 200 . TOTAL **** FIRE PREVENTION-OCE 6.3817.810 • 8,480 9,655 10,280 11,270 11.855 12.705 f "h 5224.03 PROCESSING OF FILMS • : 1to 115 MISC. CONTRACT SERVICES 75 i TOTAL **** . • • PROCESSING OF FILMS 75 " '41 , • u•wK, 5224.06 FIRE PREVENTION-EQUIPT 450 OFFICE EQUIP-FIXT-FURN 293 330 . 0 480 MISC. EQUIPMENT 3,096 . 300• .47 TOTAL **** FIRE PREVENTION-EGUIPT 3.389 630 •,;. TOTAL a-. FIRE PREVENTION 166,888 174.252 190.175 190,720 191,345 192.335 192.920. 193.770 - 1 1»• .. iC) UO ch • f't s • . • 0 • • - 5/30/89 E STIMATED FUND 010 GENERAL FUND ;RUNTY QF HAM; 73 • EXPENDITURES . .DEPT 221 FIREYEAR 1989-90 PAGE • ` ` BASE.EL ACCOUNT 1937-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 ,Q OBJ DESCRIPTION ACTUAL BUDGET ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMA a=rias==s=====_=====aa sseas=as===a==========a==aaaaa=a=a=zsaaaasm===a==ms=sazaa===cams=====zmsssssa=ass= ==a=‘sss=s=ms=os 5225 FIRE QUIP `w, ?,1 5225.01 EQUIP cMAINTMSEWT 011 REGULAR SaW 89,187 95,013 118.776• 118.776 118.776 118.776 , 418.776 118,776 021 OVERTIME SSW 8,301 6,100 2,185. 2,185 2,185 2,185 2,185• 2,185 099MISCELLANEOUS Saw • 1,324 2,700 1,995 1,995 1,995 1,995 1,995 1,995 , u1•` TOTAL **** "h. '" 98.812 103,813 122,956 122.956 122.956 122.956 122.956 122,956 EQUIP MAINT-SiY ® 5225.02 EQUIP MAINT-OCE • 101 POSTAGE & FREIGHT • 336 500 300 350 350 400 • 400 400 C "'^ 102 TELEPHONE 6 TELEGRAPH 459- 555 600 600 600 600 • 600 600 104 TRAVEL 120 750 750 BOO 800 900 900 900 106 PRINTING AND BINDING 168 • 50 60 70 75 75 75 - 75 ,Fr*t ' 109 REPAIRS TO EQUIPMENT 33,264 • 26,3C0 31,600- 33,275 36,602 40,262 . 46,000 49,660 .s 112 MILEAGE & ALTO ALLOWANCE 75' 65• 85 90 95 100 105 .si . 115 M;SC. CONTRACT SERVICES 13,355 23,530 26,200• 26,300 26,400 26,500 26,600 26,700 0 218 FUELS b LUBRICANTS 2,269 1,880 •1)815' 1,880 2,000 2,000 2,000 2x000 228 M.V./HVY EQPT PARTS/SUPP 50,785 65,800 ' 69,300 70.000 71,000 72,000 ; 73,C00 74400 !. ." i 229 BLDG 8 CONSTR MATERIALS 1,207 2,650 2,100 2,100 2,100 2,100 2,100 2,100 " A`' 235 MISC MATERIALS & SUPP 2,531 1,400 • 1,300' 1,400 1,700 1,700 • 1,700 1,700 TOTAL **** • EQUIP MAINT-OCE 104.494 123,490 134,090 • 136,860 141,717 146.632 153,475 - 158,240 'K'',F1' 5225.06 EQUIP MAINT-EQUIP 480 MISC. EQUIPMENT. 1,890 1,350 3,050 • ® . TOTAL **** EQUIP MAINT-EQUIP 1,890 1,350 3,050 • 7 . : Vg. 5225.25 ' MACH .WORK & FABRICATE • 115 MISC. CONTRACT SERVICES 83 TOTAL **** X MACH WORK i FABRICATE 83 ` •i • ® I TOTAL ***** -c, FIRE EQUIP MAINT 205,279 228,653 260x096 259,816 264,673 269s588 276,431 281,196 '` k %. . O °o . • { • • ,t • _ ,i, .., . • 5/30/89 ESTIMATED FUND 010 GENERAL FUND . COUNTY OF HAWAII • 74 . EXPENDITURES DEPT 221 FIRE YEAR 1989-90 PAGE BASE.EL ACCOUNT 1987-39 1989-39 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 Q • ATE OBJ DESCRIPTION ACTUAL ESTIMATEESTIMATE c hto == = aaaa$aaaaaaasaaaaa?aaaaaaaaaaameaaaagaaae?saTaaaaasaaaaaaasaaaaa aaaaaasaaaasasasaasaaaasEaaasaa = �x�, .1 5226 VOLLNTEER FIRE 5226..01 VOLUNTR FIRE SRV-S&W 011 REGULAR SSW 175,747 163,536 131.220 131,220 131,220 .131.220 131,220 131,220 021 OVkRTIME S&W 14,124 11,200 9.220 9,220 9,220 9,220 9,220 9,220 '{ 099 MISCELLANEOUS SSW , 794 • 1,000 •1,150 1,150 .• 1,1.50 1,150 1,150 1,150 . TOTAL **** VOLUNTR FIRE SRV-51W 190,665 ' 175,736 141,590 141,590 141,590 141,590 141,590 141,590 • •',ti• • 5226.02 VOLUNTR FIRE-OCE • : 101 POSTAGE & FREIGHT 756 410 380 400 400 400 400 400 102 TELEPHONE & TELEGRAPH 1,297 900 700 700 700 700 • 700 ' 700 104 TRAVEL 131 200 • 200 • 300 375 400 400 400 109 REPAIRS TO EQUIPMENT 3,504 2,250 2,175 2,200 2,200 2,200 2,200 2,200 4, : 41 5q{ 112 MILEAGE & AUTO ALLOWANCE 12 100 100 100 100 100 100 100 113 WATER & GAS 203 590 400 400 400 400 400 400 • 114 ELECTRICITY 1,999 1,800 1,800 1,800 1,80.0 1,800 1,800 1,800 115 MISC. CONTRACT SERVICES 6,044 4,700 5,180 5,600 5,700 1.800 5,900 5,800 217 CLEANING/SANITATION SUPP 1,900 800 400 400 400 400 400. 400 218 FUELS B LUBRICANTS 2,480 1.000 600 400 • 400 400 400 400 0 219 MED-DENTAL-HOSP-INST SUP 193 ICO 150- 150 150 • 150 150 150 220 PROVISICNS (MEALS) 4,869 2,500 '2,100 2,200 2,200 2,4'00 2,400 2,600 III 225 EDUC-RECR-SCIENTIF SUPP 59 100 100 100 100 100 100 100 227 COMPUTER & OFFICE SUPP 99 • 100 100' 100 100 100 100 1.00 228 M.V./HVY EQPT PARTS/SUPP 8,641 • 12,500 • .9,700 11x000 11,000 11x000 11.000 11x000 229 BLDG' & CONSTR MATERIALS 792 800 600' 600 675 700 700 700 235 MISC MATERIALS I SUPP 6.238 5,355 6,100- 6,100 6,000 6,000 5,000 5,000 • ', 338 RENT OF LAND-BLDGS-OFF 3,640 5.400 4,800 - 6,000 6,300 6,600 6,900 7,200 a- TOTAL **** 411 VOLUNTR FIRE-OCE 42,856 39,595 35,585 38,550 39,000 39,650 38.950• 39,450 5226.22 ANNUAL RECOGNITN AWARD '`= ' 115 MISC. CONTRACT SERVICES . 921 • TOTAL **** • ANNUAL RECO6NITN AWARD 921 TOTAL 1 0 VOLUNTEER FIRE 234,442 215,331 • 177.175 180,140 180,590 181,240 180,540 181,040 • W . ! °, • • 1 • 5/30/89 ESTIMATED FUND 010 GENERAL FUND • COUNTY OF HAWAII 75 , I efi EXPENDITURES DEPT 221• FIRE YEAR 1989-90 PAGE BASE.EI ACCOUNT 1987-88 1989-89 1989-90 1990-91 •1991-92 1992.T93 1993-94 1994-95 Q OBJ DESCRIPTION ACTUAL BUDGET ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE ESTIMATE ====2=====3===7. == 37.7.==q=22==2s=7.===7.===7.sa=a3,= ma:Iss*e=7.===2=Zscse8==7.37.231227.======N4M=a=ZZZZZZ*211Ss37. 3=111==*a P . . 144 5227 MISC FIRE 5227.01 HELICOPTER SERVICES . , i111 RENTAL/LEASE OF EQUIP 82,938 66,052 • 115 MISC. CONTRACT SERVICES 104,009 102,183 188,,000 197,400 207,270 217,633 228,514 239,939 218 FUELS & LUBRICANTS 16,000 18,000 19,440 20,995 22,674 24,487 26,446 228 M.V./HVY EQPT PARTS/SUPP o 19,000 25,250. 18,743 58,600 79,340 42,650 70,000 339 INSURANCE 55,000 • 45,000. 44,000 . 43,000 42,000 42,000 42,000 j0 TOTAL **** ; . ,`z. ' HELICOPTER SERVICES 186,946 258,235 279,250 279,583 329,865 361,647 337,651 378,385 "' 5227.10 BASIC EMT TRAININ3 104 TRAVEL 46,095 85,850 86,000• 86,000 86,000 89,000 89,000 89,000 112 MILEAGE & AUTO ALLOWANCE 39 1,500 • 1,500 1,500 1,500 2,500 2,500 2,500 115 MISC. CONTRACT SERVICES 5,531 6,520 16.920 17,000 20,000 • 20,000 20,000 20,000 ....,-.V, 219 MED DENTAL-HOSP-INST SUP 8,861 9,350 10,000 10,500 11,000 11,000 12,000 12,000 ! 339 INSURANCE • 29,661 • 30,600 38,340 • 39,000 42,000 44,000 46,000 48,000 TOTAL **** • • BASIC EMT TRAINING' 90,237 133,820 152,760 154,000 160,500 166,500 169,500 171,500 .ice -4.,:e TOTAL o#*.** MISC FIRE 277,183 39,2,055 432,010 433,583 490,365 5280147 507,151 .549,885 i DEPT 221 TOTAL ###k#A • # FIRE , 16 8,284,752 9,00• 2,763 10,847,854 9,724,989 9,962,138 9,893,995 9,901,526 9,811,827 • • " ` . I • ` • 0 w • • • i , rn •CD CD 1. . I i I-3 z (D � n EXHIBIT II "i ct 7:) tri COUNTY OF HAWAII En ' TRANSFERS OF FUNDS - JULY 1989 � tzi Z d ct Department From To W or Agency Amount Account Account Reason d. trJ• n Hawaii $ 84 ,257 . 00 Fund Balance Various Redistribute lump sum Redevelopmt. 5912 . 07-341 budget amount into Cnn, Agency detail accounts. • o Finance 355 ,000. 00 5912 . 16-339 Self- Transfer budgeted amounto vHin Insurance into self-insurance fund. U' O Police 6 ,650. 00 Various Administra- Transfer funds budgeted zcrn tion in various districts for t7 � t� H- equipment and uniform o maintenance allowances ti so payment can be made from one account. Finance 675 ,000. 00 Transfer to General Transfer Council ' s "pork Fund barrel" funds to bond fund Transfer ("capital project" fund) . Finance 3,500. 00 5121. 01-011 5121. 01-099 Budget administrator position funded for nine months. Transfer needed to fund temporary assign- ment until position filled. rn Oversight during budgeting. u1 Robert E. Bethea, Chairman, Charter Commission 6 TRANSFERS AND BUDGET SUBMISSION DEADLINE EXHIBIT III COUNTY OF MAUI FY 1989-90 BUDGET COMPARISON Mayor ' s Council Increase Percent Submittal Approved (Decrease) Change Estimated Revenues Real Prop. Taxes 46 , 360 ,807 48, 080 , 487 1, 719 , 680 3 . 7 Fuel Taxes 4 ,308 ,800 3 ,877,920 (430 ,880 ) (10 . 0) Franchise Taxes 1,670 , 000 1,670 , 000 - - Licenses & Permits 4 ,691 ,010 4 ,691 ,010 - - Intergovt. Revenues : State Grants-in-aid 7, 603 ,274 16 , 385 , 685 8 , 782 ,411 115 .5 Civil Defense 43 ,960 43 ,960 - - Vets ' Cemeteries 13,250 13,250 - - In Lieu of Taxes 25 ,000 25 ,000 - - Chgs . for Services 9 ,029 , 895 9 ,048 , 795 18 , 900 .2 Fines, Penalties 310 ,200 310 ,200 - - Use of Money/Propty. 2, 715 , 560 2 , 715 ,560 - - Bond Revenues 32,765 ,000 32,000 ,000 ( 765 ,000) ( 2. 3 ) Misc . Revenues 40 , 000 40 , 000 - - Charges to Funds 7 ,418 ,757 15 ,041 ,763 7 , 623 ,006 102 .8 Carryover/Savings 7 ,524 ,212 9 ,735 , 482 2 ,211,270 29 . 4 Total Est 'd. Revenues 124 ,519 , 725 143 , 679,112 19,159, 387 15 .4 Appropriations County Council 1 ,056,236 1,252 ,165 195 ,929 18 .5 County Clerk 272,108 272,108 - - Office of Mayor 800 ,328 652 ,622 ( 147 ,706 ) ( 185 .0 ) Management 240,691 869 ,653 628 ,962 261 . 3 Corp. Counsel 1,292 ,109 1,305 , 612 13 , 503 1 .0 Pros . Attorney 1 ,751,255 1 ,758 ,525 7 ,270 .4 Finance 4 ,075 ,263 3 ,865 , 694 ( 209,569 ) ( 5 .1 ) County-Wide Costs 18 ,913 ,915 26 ,300 ,970 7,387 ,055 39. 1 Planning 678 ,307 625, 606 ( 52 , 701) ( 7.8 ) Personnel Servos. 540, 947 499 ,077 ( 41,870) ( 7 . 7 ) Police 12,808 , 801 12, 383 ,021 ( 425 ,780 ) ( 3. 3 ) Fire Control 6 ,404,273 6 ,344 ,087 ( 60 ,186) ( . 9 ) Liquor Control 876, 480 876, 480 - - Civil Defense 185 ,753 185 ,753 - - Human Concerns 3 ,807,774 3 , 637, 754 ( 170 ,020 ) ( 4.5 ) Parks & Rec' n. : General Fund 5 ,963 ,244 5 , 904 ,708 (58, 536 ) ( 1 .0 ) Golf Fund 784,200 761 ,700 (22,500 ) ( 2 .9 ) ' Public Works: General Fund 5 ,953 , 736 5 , 900 , 685 ( 53 ,051) ( .9 ) Highway Fund 9 ,001 ,800 9 ,353 ,197 351 ,397 3 . 9 Sewer Fund 8 ,441 ,505 8 ,441,505 - - Total Operating Expend. 83 ,848, 725 91,190 , 922 7, 342 ,197 8 .8 CIP Appropriations 40 ,671 ,000 52,488 ,190 11 ,817 ,190 29. 1 Total Appropriations 124 ,519 , 725 143 ,679, 112 19,159, 387 15 .4 346 . 12 I Robert E . Bethea, Chairman, Charter Commission 7 TRANSFERS AND BUDGET SUBMISSION DEADLINE Mayor ' s Council Increase Percent Submittal Approved (Decrease) Change CIP Appropriations: General Fund 7 ,355 ,000 13, 052 ,700 5 , 697 , 700 77 .5 Highway Fund 45 ,000 6,222 ,490 6 ,220 ,990 + Golf Fund - 695 ,000 695 , 000 + Bikeway Fund 6 ,000 15 ,000 9 ,000 150 . 0 Sewer Fund 500 , 000 500 , 000 - - Bond Fund 32,765 ,000 32,000 ,000 ( 765 ,000 ) (23 .0) Total CIP Appropriations 40, 671,000 52 , 488 , 190 11,817 ,190 29 .1 REVIEW OF MAUI COUNTY BUDGET 1 . State grant-in-aid increased by approximately $8 . 8 million or 115% over the original estimate . 2 . Real property taxes increased by $1 . 7 million with no increase in rate . 3 . Excluding interfund transactions, the appropriations for operating expenditures decreased by $281 ,000 . 4 . The carryover/savings was increased by $2 . 2 million . 5 . CIP appropriations to be funded by operating funds increased by nearly $12 million, bringing the total capital improvement projects to be funded by operations to almost $20 .5 million. DIFFERENCES BETWEEN MAUI AND HAWAII COUNTY BUDGETS 1 . While Maui had $20 .5 million to fund CIP appropriations, Hawaii had only $2 . 0 million as mandated by the increase in fuel taxes authorized by Resolution 397-88 . 2 . Maui estimated carryover/savings at $9 . 7 million, whereas Hawaii estimated fund balance from previous year at $3 .4 million .. 3 . Maui 's state grant-in-aid totaled $16 .4 million, and increase of $8 .8 million from the previous year, while Hawaii ' s grant-in-aid totaled $13 .4 million, an increase of S5 .8 million. 346 . 13 t4 FINANCE OPERATIONS °\ \\ �` by Barry Mizuno SUGGESTIONS I. COMPUTERS A. Greenwell: computers could be more/better 1. Create review utilized (pp.258,273) committee (pp.272-5) 1. Greenwell: each department doing own thing now (p.273) 2. Bethea: wants Council input: a) Bethea: needs wording (pp.274-5) 2. Bethea: attorney to 3. L Orange: computer _ is word too broad for check on Charter " wording for computer financial" (p.275) department (pp. 4. Bethea: newly set up data processing committee 273-4) is working (p.276) 5. Juvik/Duncan: need to insure Charter does not become too detailed (pp.276,278) 6. Bethea/Mizuno: inserting language in Charter insures existence of (p.277) II. BUDGET A. Cushnie: you're charged with annual budget (p.258) 1. Increased amount of budget and long-term planning would justify biennial budget (pp.258-') a) We are implementing a 6-year and 20-year 3. Cushnie: what about budget plan (p.259) budget for 2-year 2.. Cushnie: large hour in-put in figuring budget period? (p.258) justifies biennial budget (p.259) 3. Cushnie: biennial would be cost-effective (p.25') 4. Cushnie: June 30th deadline for Council to 4. Get Council comment on biennial budget approve budget (p.259) (p.271) a) Bethea: must include grants (p.262) b) Bethea: Council not given time to go into details (p.262) B. Bethea: Section 10.3(a) (4) : "sums need not be itemized further than by agencies and programs" (p.260) 1. Budget now line-by-line itemizing (pp.260,267) 5. Budget process is a) -.Greenwell;__shows flack of faith in too detailed (p.269) administration (p.261) 346. 1 b) Bethea: computer tracking may cause Council 6. Present to Council to see/check more details (p.261) monthly what c) Council requires breakdown of computer original budget was equipment requested (p.262) (p•261) 2. Greenwell: city manager system would remedy budget problems (p.261) C. Transfers 1. Additional revenues are shown as adjusted budget (pp.261-2) 2. Bethea:_ Section 10-9: transfers within agency are okay (p.267) 3. Bethea: Section 10-11: no obligations incurred without appropriations made (p.267) 4. Corporation Counsel to issue new opinions on above two points (p.267) 5. Cushnie: unencumbered funds can be transferred (p.268) a) Conflict is whether mayor or Council 7. Administration needs decides (p.268) more flexibility b) Cushnie: use a percentage over budgeted (p.269) amount? (p.269) c) Using combination of percentage and dollar 8. Set dollar limits amount might work (p.269) (p.269) 6. Cushnie: must provide "such other information" 9. Cushnie: language to Council (p.270) needs to be cleaned 7. Cushnie: if Council doesn't adopt budget, up for Nos. 6 and 7 mayor's is approved. Doesn't give Council in left column time from when changes are turned in (p.270) 10. L'Orange: advise Council to comment a) L'Orange: difficult to obtain detailed on questions (p.271) items quickly (p.263) 8. Budget to Council by April 20th (p.264) 11.L'Orange: public should have budget a) Preparing draft meaningless (p.264) because input (p.263) of large grant figures 12.Juvik: present draft b) Juvik: Preparing draft would allow time for budget well before public in-put deadline; then adjust after legis- c) Hawaii County last of counties to submit lature? (p.263) budget 13.Bethea: different d) Not aware of any problems if July 30th fiscal year (pp. ended fiscal year (p.266) 264-5) ; end or e) Federal fiscal year is September 30th (p.266) different month? which creates problems with federal grants 346.2 4 D. Allotment: creates funds (p.270) 1. Appropriation: after funds are allotted, it is appropriated to a project (p.270) E. "Special funds" 1. Bethea: not sure what means (p.279) 2. Inouye: contingency fund created by Council (p.279) a) Council wanted to administer (p.280) b) Counsel to research (p.280) III. CONTRACTS/BIDDING A. $4,000 minimum bid amount may be increased (p.272) B. Centralized purchasing (p.278) 1. Section 10:14(c) (4) : order standardized equipment (p.272) 2. Charter created a standardization committee (p.272) a) Committee was not used/enforced by administrations b) Creates fairer allocation of resources (p.273) 3. Uses a data processing committee to standardize (p.272) a) Connected with computer system (p.270) 4. Prosecutor's Office asked State for computer funds (p.278) and put together their own system C. Section 13.13: he's to submit wording for changes (p.275) 1. See Millicent Kim's letter--Vol. II, #18 (p.275) 346 .3 DEPARTMENT OF RESEARCH & DEVELOPMENT by Lynn Maunakea Suggestions I. OPERATIONS/RESPONSIBILITIES A. Administrative/general 1. Have approximately 8 office staff 1. Reflect resource 2. Budget info (p.282) : person's job a) Charter allows money for special studies (p.28 ) 1) Inouye: R&D originally created through state funding (p.297) 3. Grant writing: a) Juvik: should be writing grants for funds 2. Check whether other for everything (p.285) departments include b) R&D writes grants relative to it (p.285) grant writing in Charter (p.287) c) Other departments write their own grants (p.285) 4. Characteristics: a) Reflects personality of director (p.286) b) Greenwell: R&D used to just service mayor (p.289) c) Bethea: R&D lacks form (p.289) d) Developes line of communication between departments and public/businesses via meeting attendance (p.288) e) Bethea: should provide information to Council's Economic Development Committee (p.29 .) f) Bethea: should be assigned tasks by both mayor and Council (p.296) g) Inouye: should be guided by community 3. Doesn't feel need advisory group (p.297) for advisory h) Cushnie: a commission should not determine committee (p.299) department's direction (p.298) i) Bethea: do you want mayor-appointed committee? (p.299) j) Advisory committee to R&D mentioned in H.R.S. (p.288). _ 346.4 k) Discussed changing name to suit work performed 4. Duncan: change name (p.294) but retain department's flexibility of department (p.295) (p.292) 5. Delete "all" in Art. V, Chp. 5, Sec. 5-5.3(c) (p.286) B. Tourism=promotion -programs (p.281) 1. Hawaii Visitor Bureau does tourism promotion (p.282) C. Research/marketing promotion 1. Agriculture sells County (p.282) 2. Investing more funds in agriculture (p.282) 3. Cushnie: questioned whether research projects are duplicated by Legislative Auditor (p.290) 4. Wouldn't sponsor items unrelated to economic development (p.296) D. New industry/industry development 1. Selling film industry idea (p.282) E. Special events 1. Wouldn't sponsor items unrelated to economic development (p.296) F. Data collection/information 1. Poppe: should be developing data to go towards legislative decision-making (p.283) 2. Greenwell: old criticism was R&D produced information compiliations from other sources (p.284) a) Juvik: used to have data book (p.284) b) Doesn't presently have staff needed for large projects (p.284) 3. Would check with mayor before releasing information (p.291) 4. R&D information used by mayor for policy making and legislative decision-making (p.291) 346.5 LIQUOR DEPARTMENT OPERATIONS by Jan Bibb I. PROPOSALS A. Boards and commissions 1. L'Orange: when the same mayor is re-elected, no problems exist with expired terms (p.300) a) L'Orange: means then the mayor is a good administrator when he fills the positions as they arise (p.300) 2. L'Orange: when anew mayor is elected, March 31st is the deadline to submit the new names (p.300) 3. Members with expired terms should continue to 1. Insure that serve for up to 90 days (p.300) until new commission will appointees are installed have member quorum 4. Bethea: terms expire within 90 days of end of (P•300-1) 2-year term (p.301) a) Bethea: cannot presently serve more than 2 years 90 days (p.301) 5. Seven liquor commission members enact rules and regulations through public hearings (p.311) B. Anew provision L (p.301) would mandate that 2. Insert new provision Liquor Commission is operating under Charter (p.302) to state guidelines 1. Liquor Commission doesn't get involved in in Charter (p.302-3) day-to-day affairs of department (p.302) a) Commission knows it cannot interfere in day-to-day operations (pp.304-5) b) They grant/deny licensee applications (p.304) c) Commission cannot suspend/cancel licenses, per state statute (p.304) 2. New provision L would give public in-put-type guidelines to operate under (p.302) 3. Section 3.2(c) : "that may be provided by law" means it includes state law (pp.302-3) 4. Giannini: State law takes precedence over the County Charter (p.304) C. Liquor education (p.305) 1. Duncan: need preventative programs (p.305) 2. Liquor does educate licensees (p.306) 346.6 3. Liquor has programs for high schools (p.306) 4. Give speeches to community organizations (p.306) 5. Planning to have an educational officer position soon (p.306) a) Need funding (p.306) b) Cannot uselicensees' funds for general public education (pp.307,310) c) State statute controls licensee funds (p.307) 6. Licensees prosecuted--not the public (p.308) 7. If sin taxes transferred to counties, counties would then regulate themselves (p.310) II. ORGANIZATION A. Bethea: Liquor operates under state and County law (p.301) B. Liquor is self-funding (p.306) 346.7 Bernard K.Akana Mayor .4....;;;;;;'N q',� Department of Finance Barry r Mizuno � ��Li;,;; Director �___._ _ 25 Aupuni Street,Rm.118 • Hilo,Hawaii 96720 • (808) 961-8234 OCTOBER 3 , 1989 TO: ROBERT E. BETHEA, CHAIRMAN, AND MEMBERS OF THE CHARTER COMMISSION FROM: BARRY T. MIZUNO, DIRECTOR OF FINANCE,<!5 /5-1. , SUBJECT: REAL PROPERTY TAX BOARD OF REVIEW D The Real Property Tax Board of Review was transferred to the county in 1981, when jurisdiction over real property taxes was passed on from the state to each respective county. We suggest additional language and changes to the Charter to recognize the board and to authorize alternate members to be appointed. • At the end of CHAPTER 3 , DEPARTMENT OF FINANCE, addition of the following section is suggested: Section 5-3 . 5 . Tax Board of Review. There shall be a tax board of review consisting of five regular and three alternate members who shall be citizens of the state and residents of the county, shall have resided at the time of appointment for at least three years in the state, and shall be appointed by the mayor and confirmed by the council as provided by charter . A chairperson and vice chairperson shall be elected annually by regular members from the membership. The vice chairperson shall serve as the chairperson of the board during the temporary absence from the county, illness, or disqualification of the chairperson. In the absence of any regular member, the chairperson shall call upon any alternate to serve as a member of the board, with all duties and powers thereon conferred. Any vacancy in the board shall be filled for the 0 unexpired term as provided for in the charter. No officer or employee of the county shall be eligible for appointment to any such board. 0 346.21 1 • • ROBERT E. BETHEA, CHAIRMAN, CHARTER COMMISSION 2 OCTOBER 3 , 1989 Section 13-4 should also be revised and amended as follows : Section 13-4 . Boards and Commissions . Except as otherwise provided in this charter, all boards and commissions specifically established by this charter shall be governed by the following provisions : (a) The members shall serve staggered terms of five years . Upon the initial appointment of the members of a commission consisting of five members, one shall be appointed for a term of one year, one for a term of two years, one for a term of three years, one for a term of four years, and one for a term of five years . Upon the initial appointment of the members of a commission consisting of seven members, one shall be appointed for a term of one year, one for a term of two years, two for a term of three years, two for a term of four years, and one for a term of five years . Upon the initial appointment of a commission consisting of nine members, one shall be appointed to a term of one year, two for a term of two years, two for a term of three years, two for a term of four years, and two for a term of five years . ® Alternate members appointed to any board or commission shall serve staggered terms . Upon the initial appointment as an alternate of a board or commission consisting of three alternates , one shall be appointed for a term of one year, one for a term of two years, and one for a term of three years . (b) The members and alternates shall be appointed by the mayor, and confirmed by the council, and may be removed upon recommendation by the mayor and the approval of the council . (c) No member or alternate shall be eligible for a second appointment to the same board or commission prior to the expiration of two years, provided that members of any board or commission initially appointed for a term of one year and two years shall be eligible to succeed themselves for an additional term. (d) No member or alternate whose term has expired shall continue to serve on such board or commission. (e) Any vacancy occurring in any board or commission shall be filled for the unexpired term. (f) Not more than a bare majority of the members or alternates shall belong to the same political party. 346.22 110 ROBERT E. BETHEA, CHAIRMAN, CHARTER COMMISSION 3 OCTOBER 3 , 1989 (g) Members or alternates shall receive no compensation but shall be reimbursed for necessary expenses incurred in the performance of their duties . Necessary expenses may be paid in advance as per diem allowance which shall be established by ordinance. Members of boards and commissions who do not receive compensation from their employers during the time they are serving on boards and commissions shall be reimbursed by the county for actual work hours lost at the straight time rate of pay of such members in their regular employment but in no case shall such reimbursement exceed five times the state minimum wage hour rate. (h) A chairman shall be elected from its membership annually. (i) The affirmative vote of a majority of the entire membership shall be necessary to make any action of a board or commission valid; provided, that in the case of advisory board or commission the affirmative vote of a majority of those present shall be sufficient to make any decision valid. (j ) Each board and commission shall have power to establish Sitsrules of procedure necessary for the conduct of its business, which rules shall contain the time and place of all regular meetings . (k) Notwithstanding any other provision of this charter, no person shall, by reason of his occupation alone, be barred from serving as a member or alternate of any board or commission. Should you have any questions, please do not hesitate to call me. BTM: as 0091S cc: Bernard K. Akana, Mayor Susan J. Labrenz, Managing Director Larry Tanimoto, Deputy Managing Director Finance Division Chiefs 11/ 346.23 1 Bernard K.Akana Department of Mayor OJ,SY Research & Development Director Lynn C.Z.Maunakea ▪ , ,4 25 Aupuni Street,Rm. 219 • Hilo,Hawaii 96720 • (808) 961-8366 •�r▪9TF•6•, P_''' December 7, 1989 Mr . Robert E. Bethea, Chairman and Members of the Charter Commission Hawaii County Charter Commission 101 Aupuni Street , Suite 235 Hilo Lagoon Centre Hilo, HI 96720 Dear Mr . Bethea and Members of the Charter Commission: SUBJECT: COUNTY OF HAWAII DEPARTMENT OF RESEARCH AND DEVELOPMENT As the Commission' s closing round of decision-making will be soon taking place, I wanted to reiterate several points pertaining to the • Department of Research and Development' s duties and responsibilities as currently outlined in the County Charter . Administration of County government has evolved and grown more sophisticated since the Charter' s adoption. The Department of Research and Development is a case in point . Once the central agency for receipt and implementation of federal grants, the programs thus created have spun off creating in some instances County offices and departments. The Office of Aging, Transit Agency, and Housing and Community Development are examples of the decentralization that has occurred. Chapter 5, Section 5-5.1 through 5. 3 should reflect a departmental focus on economic development. While there will be areas of crossover the County does have the Mayor' s Committees on Children and Youth and the Handicapped and an Office of Aging to deal with , social issues . The Department of Parks and Recreation has a Culture and Arts Section to respond to cultural needs. Providing Department of Research and Development with the Charter focus of economic development would not preclude its' involvement in these areas should the need arise . It would however , provide the Department with a stated focus, heretofore lacking and frequently resulting in criticism of the Department due to its inherent vague nature. 346 . 24 S Mr . Robert E. Bethea, Chairman and Members of the Charter Commission Page 2 December 7, 1989 Section 5-5. 3 (c) needs particular attention by the Charter Commission. As the County government has grown the need and the capacity for R&D to "coordinate information and regulatory knowledge of all federal and state grant-in-aid participation programs which affect the County" has diminished . With the aforementioned "spin offs" and decentralization that has occurred the individual offices and departments have become responsible for the development and implementation of programs within their subject areas. There have, to the best of my knowledge been no problems associated with this arrangement. Department of Research and Development catalogs all new library acquisitions, disseminates copies of the federal register and is the • custodian of the R&D library including the Catalog of Federal Grants available to anyone in the County. Expecting adherence to the duties as stated in the Charter requires the appropriate staffing also be mandated via the Charter . Recommendation of exact staff numbers would require an opinion from Corporation Counsel as to the extent of "coordination" that is required . Thank you for this supplemental opportunity to comment . If additional clarification is desired, please call me at 961-8366. Sincerely, ,75,14.L. clii-yLe4.44-A-A-6A---- Lynn C.Z . Maunakea Director 1 346 . 25