Loading...
HomeMy WebLinkAboutREP FC 083 2018/02/20 (2016-2018) REPORT OF THE COMMITTEE ON FINANCE • DATE: • February 20, 2018 Re: Comm. No. 712/Bill 98 PLACE: Council Chambers Kailua-Kona, Hawai`i TIME: 9:07 a.m. Council Chair and Members Hawai`i County Council Hilo, Hawai`i 96720 Your Committee on Finance, to which was referred Bill 98, reports as follows: Bill No. 98, transmitted by Council Member Susan L. K. Lee Loy, via Communication No. 712 dated January 12, 2018, Initiates an Amendment to Article XIII, Section 13-28 of the Hawaii County Charter • (2016 Edition), relating to the Salary Commission. This bill requires that at least 30 days prior to the approval of any salary adjustment, the Salary Commission submit copies of a detailed report of its findings and conclusions to the Office of the County Clerk and Office of the Mayor, publish a notice that said report is available for public inspection and include in the notice a detailed account of proposed salary increases or decreases, and hold at least one public hearing in both East and West Hawai`i. Also requires that any increase or decrease of more than 10 percent be approved by a two-thirds vote of the entire membership of the commission. February 6, 2018 • Council Member Lee Loy stated having completed her research with the Salary Commission, she noted it is very difficult to slow the process down to provide for a larger public input. Council Member Karen Eoff stated she appreciates the research that Ms. Lee Loy has done by listening to the Salary Commission and seeing what else they can come up with as far as within their own rules or a hybrid of a charter amendment. Ms. Eoff is not sure if there is a time limit because the Charter amendments take three readings in the Council. Council Member Herbert M. "Tim" Richards, III asked Ms. Lee Loy whether she got a sense of the Commission's reaction to this bill and whether they were aware of what she is trying to accomplish. Ms. Lee Loy stated that the Commission received inquiries from the public, and to provide them with the analysis as to how the Commission carne up with the various salaries and that the Salary Commission deals with any salary adjustment as it relates to non-bargaining units. • FC Report No. 83 FC-83 Page 2 February 20, 2018 Council Member Aaron Chung stated his concern was that there are no checks and balances. The Salary Commission is the final arbiters and what they think is fair is final. Mr. Chung noted that the Salary Commission does things incrementally and feels generally people do not have a problem with raises; however, when it is up to 40 percent and the bargaining units are fighting for small increments, it's hard to explain that to the public. Committee Chair Maile David thanked Ms. Lee Loy for bringing this item forward and stated she would like to hear from the Salary Commission because any amendments Ms. Lee Loy entertains will make sense after giving the Salary Commission the opportunity to speak about the process. Ms. Lee Loy postponed Bill 98 to February 20, 2018, Finance Committee meeting in Kona, and placed on the agenda when the Salary Commission would be able to present its comments and input, with discussion on this bill to follow. February 20, 2018 Ms. Lee Loy stated if the Salary Commission is a body with authority to institute raises and impact the County's Operating Budget, they should be held to a higher standard,just like the Council. Ms. Lee Loy feels that the Council needs to give the electorate the ability to engage because they are the ones who pay the bills and, therefore, should have a seat at the table. Mr. Richards commented that there is no question as to the level of work of the Salary Commission in reviewing salaries and also the level of professionalism as to what is being evaluated. Council Member Eileen O'Hara stated she appreciates the work the Salary Commission is doing but feels there is a lack of transparency. Ms. O'Hara commented that it's important that the public be given notice, and a notice published in newspapers as well so that the public is made aware of the process and have knowledge of that before the actual meetings. If the electorate decides, Ms. O'Hara feels the County Charter should be amended to allow for additional public process. Council Chair Valerie T. Poindexter commented that the public should be able to "chime"in, and further added that with this amendment, the public would not be part of the decision making, however, leaving it up to the voters to decide if they would want this or not. Ms. Poindexter also stated that the Salary Commission had put a lot of thought and hard work into their decisions, and she even inquired with the Finance Department as to how it would impact the budget and if there was money for the pay adjustments. Ms. Poindexter does not want to give the public false hope, stating that if this amendment is put in place, the public would be giving input but will not be involved in the decision. Council Member Jennifer Ruggles asked Ms. Lee Loy whether the Commission held public hearings in the past. Ms. Lee Loy responded that the Salary Commission operates the same as any other board or commission. Ms. Lee Loy noted that in this situation, the discussion took place but the,proposal itself was distributed at the meeting. She stated that some of the decisions made were on the day the proposal was given and the reason behind the amendment relating to the Salary Commission. Mr. Chung commented that he is in support of this amendment. The current Charter provision was borne out of the desire to de-politicize the system. He noticed he was in favor of FC-83 Page 3 February 20, 2018 incremental raises but wonders whether it is necessary to have one meeting in East Hawai`i and one in West Hawai`i. Commission is using Eoff stated that if the mandated criteria to address inversions, subordinates were receiving higher pay than their directors; she would not want the public to have the perception that the decision of the Salary Commission could be changed. However, she stated that the public hearing may clarify this and that she supports a process to create more transparency, inform the public, and have one public hearing via videoconference on both sides of the island. Ms. Lee Loy moved to amend Bill No. 98 with the contents of Communication No. 712.1. She explained that in order to address the public hearing process in a more efficient way, the amendment would allow the Salary Commission to hold at least one public hearing in either East or West Hawai`i, and any public hearing shall be conducted using videoconferencing technology to allow for public participation. Ms. David commented that the.added costs for having two public hearings was a concern and appreciates this amendment. After the Salary Commission's presentation by Mr. Hugh Ono, she stated points were very well-taken and said the Council's decision does not question the work and efficiency of the Salary Commission. Given the amendment, Ms. David is in support of allowing the voters to weigh-in on this measure. Your Committee on Finance is in accord with the purpose and intent of Bill 98, as amended to Draft 2, and recommends its passage on first reading. • dmm AYES NOES ABS EX Respectfully submitted, CHUNG X DAVID X COMMITTEE ON FINANCE EOFF X KANUHA X LEE LOY X MA.; O'HARA X • tZ9r,- POINDEXTER X MAILE DAVID, C A RICHARDS X FC REPORT NO.: 83 RUGGLES X ADOPTED: MAR 1 4 2018