REP FC 018 2015/03/31 (2014-2016)

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REPORT OF THE COMMITTEE ON FINANCE DATE: March 31, 2015 Re: Comm. No. 205/Bill No. 35 PLACE: Council Chambers Hilo, Hawaii TIME: 10:24 a.m. Council Chair and Members Hawai`i County Council Hilo, Hawai`i 96720 Your Committee on Finance, to which was referred Bill No. 35, reports as follows: Bill No. 35, transmitted by Finance Director Deanna S. Sako, via Communication No. 205 dated March 12, 2015, adopts a pay plan for persons employed by the County other than those whose pay is otherwise provided for, designating payroll periods, pay days, prescribing requirements with respect to official fidelity bonds, and repealing Ordinance No. 14-84 and all amendments thereto, said ordinance to be known as the Salary Ordinance of 2015. This Bill incorporates the scheduled increase to minimum wage effective January 1, 2016, into the proposed Salary Ordinance of 2015. Human Resources Director Sharon Toriano and Human Resources Program Specialist Jenny Sakamoto appeared before Your Committee for comments. Council Members Greggor Ilagan and Danny Paleka expressed concern regarding a requirement that the council chair review and authorize pay step raises for district staff. Program Specialist Sakamoto explained that a salary ordinance needs to be passed each year in that this is the authority needed to pay staff for all positions identified here, and that there is no other authority to pay. She further commented that if this salary ordinance is not passed, staff will not get paid from July 1, 2015. Director Sharon Toriano summarized that this Salary Ordinance of 2015 is targeted to address the minimum wage increase and that the authority of the council is needed. Pursuant to Article III, Section 3-13 of the Hawaii County Charter, interim amendments to the ordinance establishing the pay plan for the county may be by resolution of the council provided a revised salary ordinance is enacted at least once annually. FC Report No. 18