The URL can be used to link to this page

Home My WebLink AboutREP FC 120 01/28/1986 1984-1988 r • o '1" OFFICE INFORMATION ONLY Meeting: June 9, 1986 • (FC) Action: Action taken on Executive Pay Plan in 1986-1987 Budget Re:. REPORT OF THE 411 COMMITTEE ON FINANCE Date : January 28 , 1986 Place: Councilroom Time: 9 :00 a . m . Chairman and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance , to which were referred Communication Nos . 393 , 393.1 and 393. 2, relating to the County of Hawaii Executive Pay Plan, reports as follows: Communication 393 is a proposal from Council Chairman Yamashiro on the executive pay plan which involves four adjustment periods , January 1 , 1986, July 1 , 1986 , January 1 , 1987 , and July 1 , 1987 . Communication 393.1 is a submittal from Councilwoman Jitchaku requesting that the Salary Commission 's recommendations on the pay plan be considered in conjunction with any pay plan consideration . Communication 393. 2 is a submittal from Councilman Kokubun on the analysis of the Executive Compensation Plans: A) Council Chairman 's proposal and B) Salary Commission 's proposal . Also attached are recommendations by Councilman Kokubun on: 1 ) a policy statement addressing the compression issue between department heads and their subordinates ; and 2 ) a possible alternative compensation proposal to Council Chairman 's proposal and the Salary Commission 's recommendations . The committee reviewed the variations of compensatory plans and developed the following major concerns and opinions: 1 ) What would the financial impact be on the budget and what would the funding source be . 2) Should the pay increases address compression at all . 3 ) Will it be difficult in attracting qualified executives by notrovidin for pay increases . p 9 P Y 4) Should the compression currently created by collective bargaining be addressed now to alleviate future pressure on executive pay increases . 5) How much of a percentage increase should be given and should retroactivity be considered . FC REPORT N0, 120 ADOPTED: 411 411 FC-120 Page 2 January 28 , 1986 In addressing Item #1, Councilman Kokubun 's plan calls for pay increases in two increments: A) 1/1/86 - 6/30/86 ; and B) 7/1/86 - 6/30/87 . The financial impact for the initial six months shall be $133 ,057 and $233 ,095 for the ' 86-87 fiscal year . Funding for the entire year and a half plan shall be provided by the ' 84-85 fiscal year fund balance . Though various philosophies surfaced in regards to Item #2, the general consensus of the committee was to address the compression problem at this time without committing to future increases , as described in No . 5 of Councilman Kokubun 's plan . In the discussion of attracting qualified executives , as stated in Item #3 , the committee felt that this should not pose a problem due to the overwhelming majority of department heads stating they had received salary increases when coming on board with the County . In addressing Item #4 , several of the members agreed that a firm message should be sent to the administration to initiate tougher negotiations in addressing the compression problem. After reviewing the various proposals , the committee accepted Councilman Kokubun 's plan with the amendment of reducing the Mayor 's differential from 10 percent to 5 percent over that of the Managing Director 's salary. By virtue of the committee 's acceptance of Councilman Kokubun 's plan, (copy attached ) , Item #5 was addressed . Your Committee on Finance recommends approval of Councilman Kokubun 's proposal , as revised , and requests the Legislative Auditor to prepare the appropriate resolution to amend the salary ordinance and an ordinance bill to appropriate the necessary funds from the Fund Balance Account to implement the salary increases . FRANK DE LUZ III, CHAIRMAN LORRAINE R. JITCHAKU, VICE CHR. JAMS L. K. DAHLBERG, EM . R aczed-4.4) �I TAKASHI OMING0,1 EMBER' RUSSELL S. KOKUBUN, MEMBER /kL. . q MER K. LAI, MEMB•R PENCER K. SCHUTTE, MEMBER LA/MS • • • .'ZYp...*H•�� • • RUSSELL S. KOKUBUN \�''' \ •T' Councilman •: .w� .+• •'•y tF"O COUNTY COUNCIL County of Hawaii Hawaii County Building 25 Aupuni Street Hilo, Hawaii 96720 January 21, 1986. Committee Members Committee on Finance County of Hawaii Hilo, HI 96720 Re : Executive Pay Plan Alternative After careful analysis of the Executive Pay Plan issue, I would like to submit the following as a possible alternative to the Yamashiro proposal and the Salary Commission' s recommendations. I believe my. planaddresses both an affordable pay increase and yet addresses the compression conflict between department and agency heads and their subordinates. POLICY: In order to resolve the compression_ issue, I recommend the Council adopt the following policy statement . "1. The compensation for major department or agency heads shall be 5% higher than the highest paid subordinate. 2. Deputies shall be. compensated at a level which represents 5% less than their respective department or agency heads , unless otherwise provided for. 3. Managing Director and the Prosecuting Attorney shall be compensated 5% higher than the highest paid executive department head. • • • COUNTY COUNCIL County of Hawaii Hawaii County Building 25 Aupuni Street Hilo, Hawaii 96720 Committee Members Page 2 January 21, 1986 4. The Mayor shall receive a compensation of 10% more than the Managing Director. . 5. Whenever the salary of a department or agency head falls less than 5% than the highest paid subordinate in the respective department or agency, then an adjustment to the Executive Pay Grade Schedule should be initiated to maintain the 5% margin. " PAY GRADE SCHEDULE : ' The pay grades being proposed takes into consideration the concern of the Mayor of the County of Hawaii exceeding the salary of the Governor of the State of Hawaii (Conference Committee Report No. 75 on S.B. 471 recommended that the Governor' s pay be increased to $80, 000. Proposal is still pending in the Legislature. ) Effective Date Effective Date Pay Grade January 1, 1986 July 1, 1986 A-20 55,836 58, 932 A-19 53, 172 56, 124 A-18 50, 640 53,448 A-17 48, 232 50, 898 A-16 45, 936 49, 428 A-15 . 43,752 47,076 A-14 41, 664 44, 832 . A-13 39, 684 42, 696 A-12 37, 800 40, 668 A-11 36,000 38,736 A-10 34, 284 36, 888 A- :9 32, 652 35, 136 A- 8 31,092 33,468 A- -7 . 29, 616 . 31, 872 . . • • COUN.`IrY COUNCIL County of Hawaii Hawaii County Building 25 Aupuni Street Hilo, Hawaii 96720 Committee Members Page 3 January 21, 1986 COST BREAKDOWN : (Compounded) Cost For Cost For Total Cost Resource 1/1/86-6/30/86 7/1/86-6/30/87 1/1/86-6/30/87 County Resource $116, 853 $205, 055 $321,908 Housing, Resource 5,930 8,596 14, 526 Liquor Resource - 3,336 6,348 9,684 Water Resource 6, 938 13 ,096 20,034 Total $133,057 $233,095 $366,152 Note : No retroactive consideration is included for either January 1, 1985 or July 1 , 1985. Increased costs commencing July 1, 1987 would be contingent -.upon the collective bargaining agreements in future years. COMMENTS: . The Executive Pay Plan as being proposed is premised upon the following considerations : 1. The pay grade levels for the respective executive positions are basically those recommended by the Salary Commission. The Mayor, Managing Director and Prosecuting Attorney have been adjusted to so reflect the policy . guidelines. 2. Councilman Yamashiro ' s proposal to place deputies at 5% of the department or, agency heads have been incorporated in most cases . 3. Other positions below the grade levels of A-16 have been upgraded by 1 grade to take into consideration of the movement of most deputies from A-15 to A-16. 4. The Salary Commission used the SR-30(L4) pay as a benchmark with 10% being the spread factor. This proposal utilizes the highest paid subordinate causing the compression as the benchmark with 5% as the spread margin. 5. The Mayor' s salary will be below the Governor. • COLII�`I Y COUNCIL . county of Hawaii • Hawaii County Building 25 Aupuni Street Hilo, Hawaii 96720 Committee Members Page 4 January 21, 1986 The foregoing only addresses the symptoms of a problem and not the cause. If we are to truly resolve this problem, we need to address the cause. I would suggest that we send a clear policy message to the Administration that future negotiations convey a message of the economic plight which exists throughout our County government and private sectors ., • Congress will be addressing the federal deficit requirements during this session, but already a clear message is before us to expect reductions in federal resources. Strong fiscal directions must be established now, before the impact of the fecieral reductions come upon us. In closing, I wish to thank allofou for consideringmyproposal Y and I certainly hope that it has shed some insight to the resolution of our executive pay issue. / Ru.s'll S. Kokubu Councilman HT: se Att. P EXECUTIVE PAY PLAN SCHEDULE REVISED RUSSELL KOKUBUN'S PROPOSAL Current Current Adjusted 6 Mos. Increase Adjusted Pay 12 Mos. Increase Adjusted Pay Pay Grade Salary Grade Levels 1/1/86-6/30/86 1/1/86 7/1/86-6/30/87 7/1/86 Mayor A-19 49,992 A-19 1,590.00 53,172 2,952 56,124 Managing Director A-18 44,472 A-18 3,084.00 50,640 2,808 53,448 � Prosecuting Attorney A-18 44,472 A-18 3,084.00 50,640 2,808 53,448 Deputy Managing Director A-17 42,096 A-17 3,068.00 48,232 2,666 50,898 Director of Finance A-17 42,096 A-17 3,068.00 48,232 2,666 50,898 Corporation Counsel A-17 42,096 A-17 3,068.00 48,232 2,666 50,898 Planning Director A-17 42,096 A-17 3,068.00 48,232 2,666 50,898 Chief Engineer A-17 42,096 A-17 3,068.00 48,232 2,666 50,898 Police Chief A-17 42,096 A-17 3,068.00 48,232 2,666 50,898 Manager-Water Supply A-17 42,096 A-17 3,068.00 48,232 2,666 50,898 County Physician 1/2 T A-17 21,048 A-17 1,534.00 24,116 1,333 25,449 Fire Chief A-16 40,104 A-17 4,064.00 48,232 2,666 50,898 Director-Civil Service A-16 40,104 A-17 4,064.00 48,232 2,666 50,898 First Deputy Prosecuting Attorney A-16 . 40,104 A-17 4,064.00 48,232 2,666 50,898 Director-Parks & Recreation A-15 38,196 A-17 5,018.00 - 48,232 2,666 50,898 Director-Research & Development A-15 38,196 A-17 5,018.00 48,232 2,666 50,898 Deputy Planning Director A-15 38,196 A-16 3,870.00 45,936 3,492 49,428 Assistant Corporation Counsel A-15 38,196 A-16 3,870.00 45,936 3,492 49,428 Deputy Chief Engineer A-15 38,196 A-16 3,870.00 45,936 3,492 49,428 III Deputy Police Chief A-15 38,196 A-16 3,870.00 45,936 3,492 49,428 Deputy Manager-Water Supply A-15 38,196 A-16 3,870.00 45,936 3,492 49,428 Housing Administrator A-14 36,372 A-17 5,930.00 48,232 2,666 50,898 County Clerk A-14 36,372 A-16 4,782.00 45,936 3,492 49,428 Deputy Director-Civil Service A-14 36,372 A-16 4,782.00 45,936 3,492 49,428 Deputy Fire Chief A-14 36,372 A-16 4,782.00 45,936 3,492 49,428 Deputy Director-Parks & Recreation A-13 34,668 A-16 5,634.00 45,936 3,492 49,428 Deputy Director-Research & Development A-13 34,668 A-16 5,634.00 45,936 3,492 49,428 . 4 Current Current Adjusted 6 Mos. Increase Adjusted Pay 12 Mos. Increase Adjusted Pay Pay Grade Salary Grade Levels 1/1/86-6/30/86 1/1/86 7/1/86-6/30/87 7/1/86 Legislative Auditor A-13 34,668 A-16 5,634.00 45,936 3,492 49,428 Assistant County Physician 1/2 T A-13 17,334 A-16 2,817.00 22,968 1,746 24,714 Assistant County Physician 1/4 T A-13 8,667 A-16 1,408.50 11,484 873 12,357 Deputy County Clerk A-12 33,012 A-14 4,326.00 41,664 3,168 44,832 Director of Liquor A-12 33,012 A-13 3,336.00 39,684 3,012 42,696 SAdministrative Assistant A-12 33,012 A-13 3,336.00 39,684 3,012 42,696 Safety Coordinator A-8 27,216 A-11 4,392.00 36,000 2,736 38,736 Band Director A-7 25,920 A-8 2,586.00 31,092 2,376 33,468 131,725.50 99,894 • -2-