Loading...
HomeMy WebLinkAboutREP FC 016 2017/05/02 (2016-2018) REPORT OF THE COMMITTEE ON FINANCE DATE: May 2, 2017 Re: Comm. No. 238/Bill No. 29 PLACE: Council Chambers Kailua-Kona, Hawai`i TIME: 2:30 p.m. Council Chair and Members Hawai`i County Council Hilo, Hawai`i 96720 Your Committee on Finance, to which was referred Bill No. 29, reports as follows: Bill No. 29, transmitted by Council Member Sue Lee Loy, via Communication No. 238 dated April 11, 2017, is for an ordinance amending Chapter 2, Article 4, of the Hawai`i County Code 1983 (2016 Edition, as amended), by adding a new section relating to temporary positions. This bill requires the Finance Director to notify the Council of any person employed under a contract for less than 90 days if the salary is $5,000 or more per month, and the temporary position is unrelated to a state of emergency declaration. Council Member Lee Loy stated that as a member of the County non-profit grant Ad Hoc Committee, she realized that an individual hired under an 89-day contract could be paid a monthly amount that a non-profit organization could use for an entire year of providing needed services to the community. This bill is structured such that a report would be generated from the Director of Finance whenever an individual is contracted at a monthly rate of$5,000 or more. Anything less than$5,000 would not require a report. Council Member Lee Loy said she spoke with Human Resources (HR) who suggested revising Section 2(a) to reflect that the director of finance be changed to the director of human services since HR is the department that oversees 89-day contract hires. HR also shared that under Hawai`i Revised Statutes (HRS) Section 76-77 there is a civil service exemption clause containing a 16 point checklist they use to evaluate an individual under an 89-day contract. Ms. Lee Loy stated that the authority will remain with the administration but will go forward with the bill's current intent; however, if any patterns or trends develop in the future, the Council will have an opportunity to refine later. HR already has a vetting process so this bill will just give the Council a heads up on individuals being hired above and beyond the $5,000 threshold. Council Member Karen Eoff questioned whether Council Member Lee Loy determined if it should be the Human Resources Director or Finance Director. FC Report No. 16 FC-16 Page 2 May 2, 2017 Council Member Lee Loy commented that the suggestion that the Department be HR and not finance was made by HR, and noted that if this bill should move to Council there will still be an opportunity to revise it. Council Member Eoff commented that it seems reasonable and appropriate. • Council Member Aaron Chung stated he thought there could be a specific reference to HRS Section 76-77 and feels it should include everything and not have a threshold of$5,000. Mr. Chung commented that the contract should be for personal services and not as they termed it being for employment. He noted his support in whatever form. Council Member Jen Ruggles asked where the funds would be coming from for an 89-day contract. Deputy Finance Director Deanna Sako responded that whichever department hires the employee, the funds would come out of its budget. For example, if the Mayor requested funds for a contract then it would come out of the Mayor's budget. Council Member Valerie Poindexter stated she is in support of the bill, and if amendments need to be made it can be done at the Council level. Council Member Dru Kanuha acknowledged the comments and proposed amendments and • stated that it's another layer of transparency. He appreciates that it will bring more notice to what is happening in the county as well as notice to the voters. He will support this current version and looks forward to whatever revised form that may come out to Council. Council Member Eileen O'Hara is also in support of this bill. She stated that there are a number of questions in this and previous administrations that did extensive hiring outside of civil service through the general hiring process. She noted this raised a lot of questions from the public about transparency, background and competency of the contract hires, and scope of services. Council Member Lee Loy stated that this is purely accountability to our taxpayers. When funds are being expended, there needs to be a public purpose whether or not there is a threshold. She will continue to work with the HR department to come up with language that will benefit the general public. Chair Maile David stated that these discussions, and previous discussions regarding this particular matter, brought forward the transparency and accountability that we strive for. She commented that she is looking forward to a Draft 2 with the suggested changes and that HR would be the best department to work with. FC Report No. 16 FC-16 Page 3 May 2, 2017 Your Committee on Finance is in accord with the purpose and intent of Bill No. 29, and recommends its passage on first reading. • • din AYES NOES ABS EX Respectfully submitted, CHUNG X DAVID x COMMITTEE ON FINANCE EOFF X KANUHA X LEE LOY X 411011Pri/prittill J O'HARA X s- � POINDEXTER x MAILE D A D, CHAIR RICHARDS X FC REPORT NO.: 16 RUGGLES x ADOPTED: MAY 1 7 2017