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HomeMy WebLinkAboutMIN FC 2018/04/24 2016-2018Committee on Finance 33rd Session West Hawaii Civic Center 74-5044 Ane Keohokalole Highway, Building A Kailua-Kona, Hawaii April 24, 2018 CALL TO The regular meeting of the Committee on Finance was called to order at ORDER: in the Council Chambers, Kailua-Kona, by Ms. Maile Medeiros David, Chair. ROLL CALL: Present: Ms. Maile Medeiros David, Chair Ms. Karen Eoff, Vice Chair Mr. Aaron S. Y. Chung, Member (came in later) Mr. Dru Mamo Kanuha, Member Ms. Susan L. K. Lee Loy, Member (via videoconference from Hilo) Ms. Eileen O'Hara, Member (via videoconference from Hilo) Ms. Valerie T. Poindexter, Member Mr. Herbert "Tim" Richards, III, Member Ms. Jennifer Ruggles, Member (via videoconference from Hilo) CHR. DAVID: Before we take public testimony, I need to make an announcement or disclosure right now. During the prior Committee meeting on Human Services and Social Services, I neglected to mention that Committee Chair received a timely note from Council Member Lee Loy, stating that her presence for today's meeting will be in Hilo via videoconference. And also Council Members received, and I have also received, two untimely notifications from Council Members O'Hara and Ruggles that they will also be participating at Hilo chambers via videoconferencing. I'm sorry I neglected to make that statement before I convened the Human Services meeting, so I apologize for that. I'm making that statement now, and also making note of that before we start the Finance Committee. Okay, any comments? Seeing none, we're going to proceed with Statements from the Public. STATEMENTS The Chair directed the Committee to proceed to the next order of business, FROM THE Statements from the Public on Agenda Items. PUBLIC ON AGENDA ITEMS: (There were none.) FC -33 April 24, 2018 CHR. DAVID: Mr. Clerk, before you start with Communications, would be okay if we take one thing out of order for request Bill 137, if it's okay with Council Members. Okay, seeing none, Mr. Clerk, could you proceed in reading Bill 137? Change Order As directed by the Chair and with no objection from the Council Members, of Business: the following item was taken out of order: Bill 137: AMENDS ORDINANCE NO. 17-39, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30. 2018 Increases revenues in the Coordinated Services account ($25,000); and appropriates the same to the Coordinated Services -Other Current Expenses account, for a total appropriation of $160,000. Funds would be used by the Department of Parks and Recreation to provide additional service to participants. Reference: Comm. 889 Intr. by: Ms. David (B/R) Motion to Approve: Mr. Richards moved to recommend passage of Bill 137 on first reading. Seconded by Ms. Eoff. CHR. DAVID: Council Members, I have Coran. Coran can you please come and identify yourself for the record? (Note: At this time Elderly Activities Division Assistant Director Coran Kitaoka came forward to address the members of the Committee.) MR. KITAOKA: Good morning, Madam Chair. Coran Kitaoka, Assistant Director, the Elderly Activities Division. CHR. DAVID: Thank you. Would you please give us a really brief breakdown on the purpose of this bill? MR. KITAOKA: Okay. In regards to the revenue increase, wanted to let you know we received through the Office of Aging, federal funds. Which is the Title III Older Americans Act funds, and it is in the ballpark of about $135,000. This increase, the $25,000, is primarily to expand our services, our direct services to kupuna. We are actually looking at expanding more services in the South Kona from Captain Cook to Milolii area, in the components of transportation and outreach. So to bring more services especially to that part of the island, we need this appropriation to help us with vehicle cost, fuel, and maintenance. Basically it's just an increase to expand our services in that area, as well as to help provide more transportation in the areas of nutrition congregate sites. This will give us more flexibility and more means to help us maintain our vehicles especially. Page 2 FC -33 April 24, 2018 CHR. DAVID: Thank you very much, Mr. Kitaoka. MR. KITAOKA: Thank you. CHR. DAVID: Council Members, do you have any questions? Hilo, do you have any questions for Mr. Kitaoka? I'll take that as no, I don't hear any response. Thank you, for being here. MR. KITAOKA: Thank you very much. CHR. DAVID: Council Members, all those in favor of approving Bill 137 please say "aye." Vote on Bill 137: The motion to recommend passage of Bill 137 on first (Approved) reading was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles and Chair David — 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Thank you very much. MR. KITAOKA: Mahalo. CHR. DAVID: Mr. Clerk, could you go to the top of the agenda now? Return to Order The Chair directed the Committee to return to the order of business. of Business: COMMUNI- The Chair directed the Committee to proceed to the next order of business, CATIONS: Communications. Comm. 7.21: MONTHLY BUDGET STATUS REPORT FOR THE MONTH ENDED FEBRUARY 28, 2018, FROM THE DEPARTMENT OF FINANCE From Finance Director Deanna Sako, dated March 27, 2018, transmitting the above report pursuant to Hawaii County Charter Section 6-6.3(h). Page 3 FC -33 Vote on Comm. 7.21: Filed April 24, 2018 Mr. Richards moved to close file on Comm. 7.21. Seconded by Mr. Kanuha and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles and Chair David – 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Before I ask you to read communication—Council Members in Hilo, if you want to discuss would you please just shout out? Otherwise I'll just wait a few seconds and call for the vote, okay. Thank you. Alright, Comm. 14.33, Mr. Clerk. Comm. 14.33: REPORT OF CHANGE ORDERS AUTHORIZED: MARCH 1 – 15, 2018 From Finance Director Deanna Sako, dated April 3, 2018, transmitting the above report pursuant to Hawaii County Code Section 2-12.3. Motion to Close File: Ms. Eoff moved to close file on Comm. 14.33. Seconded by Mr. Kanuha. CHR. DAVID: Any discussion. Mr. Richards. And I believe we have Director Sako available in Hilo. Go ahead, Mr. Richards. MR. RICHARDS: Thank you, Chair. Deanna come forward please. (Note: At this time, Finance Director Deanna Sako came forward to address the members of the Committee.) MS. SAKO: Good morning. Deanna Sako, Director of Finance. MR. RICHARDS: Good morning, Deanna. Just on these change orders, we got several of them that are 100 percent over the original. Can you explain them? MS. SAKO: Yeah, I think in the purpose column we try to explain it, but I know it's not always clear. So we're kind of at that time of year where we're extending a bunch of our contracts, so several of them have option years. So especially on the one that we're in option year four of four, we have the original contract plus you know, the first 100 percent is basically the first option year, and then the second option year and we keep going. So that's what a lot of them are, I didn't look to see if that's every single one of them. Some of them we've added time, and we've kept adding on to the contract as necessary. Page 4 FC -33 April 24, 2018 MR. RICHARDS: Okay. Specifically Parks and Rec, was that just adding services? MS. SAKO: The La`aloa one in this particular case, yes, we added the archaeological and landscaping areas that were not previously mapped. So this one was a relativity small contract that has grown, as we keep adding on work. Sometimes when we start a project too, we find out we need additional testing or mapping. MR. RICHARDS: Yeah, I get that. I just want to be mindful of just not extending and extending, after we've gone through the selection process. Thank you, I yield. CHR. DAVID: Thank you, Mr. Richards. Anyone else? Hearing and seeing none, all those in favor of filing Communication 14.33 please say "aye." Vote on Comm. 14.33: Filed Comm. 15.28: The motion to close file on Comm. 14.33 was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles and Chair David — 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Mr. Clerk, Communication 15.28. REPORT OF FUND TRANSFERS AUTHORIZED: MARCH 1 — 15, 2018 From Controller Kay Oshiro, dated March 28, 2018. Vote on Comm. 15.28: Ms. Eoff moved to close file on Comm. 15.28. Seconded Filed by Ms. Poindexter and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles and Chair David — 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Mr. Clerk, Communication 15.29. Page 5 FC -33 April 24, 2018 Comm. 15.29: REPORT OF FUND TRANSFERS AUTHORIZED: MARCH 16 — 31, 2018 From Controller Kay Oshiro, dated April 2, 2018. Vote on Comm. 15.29: Mr. Richards moved to close file on Comm. 15.29. Seconded Filed by Ms. Poindexter and carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles and Chair David — 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Mr. Clerk, Communication 69.6. Comm. 69.6: THIRD QUARTER CLAIMS REPORT: JANUARY 1 — MARCH 31, 2018 From Claims Investigator/Adjustor Clifford D. Victorine III, dated April 4, 2018, transmitting the above report pursuant to Section 2-9 of the Hawaii County Code. Motion to Close File: Vote on Comm. 69.6: Filed Ms. Poindexter moved to close file on Comm. 69.9. Seconded by Ms. Eoff. CHR. DAVID: Any discussion, Council Members? I believe Mr. Victorine is in Hilo if anyone has questions. Hearing or seeing none, all those in favor of filing Communication 69.6 please say "aye." The motion to close file on Comm. 69.6 was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles and Chair David — 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Mr. Clerk, Communication 377.3. MR. HENRICKS: Before we move on Madam Chair, could you just ask someone in the Hilo chambers to say hello or something. So we can get the voice activated so the screen would go back on, so we can confirm they're all there. Thank you. Page 6 FC -3 3 CHR. DAVID: Thank you. MS. LEE LOY: Hello. CHR. DAVID: Thank you. April 24, 2018 Comm. 377.3: THIRD QUARTER REPORT OF PERSONS EMPLOYED UNDER A CONTRACT FOR LESS THAN 90 DAYS: JANUARY 1 — MARCH 31, 2018 From Human Resources Director William V. Brilhante, Jr., dated March 29, 2018, transmitting the above report pursuant to Section 2-12.5 of the Hawaii County Code. Motion to Close File: Ms. Eoff moved to close file on Comm. 377.3. Seconded by Mr. Kanuha. CHR. DAVID: Any discussion, Council Members? MS. LEE LOY: Chair? CHR. DAVID: Thank you. Ms. Lee Loy, is that you? MS. LEE LOY: Yes, thank you. We have William Brilhante here, and I just had a very simple question. On one of our contracts as it relates to Andy Levin, the contract duration ended and I just was wondering if that contract will be extended. Partly because we know the legislative session is not over, but that was his primary goal or primary purpose for this contract. Mr. Brilhante. (Note: At this time, Human Resources Director William Brilhante came forward to address the members of the Committee.) MR. BRILHANTE: Good morning, Council Members, specifically Ms. Lee Loy, to address your question regarding Mr. Levin's contract, as reported in our submittal this was in reference to the first contract that we signed that we executed with Mr. Levin. And that took us to January 3rd of this year to March 31, and as you properly stated, his primary duties and responsibilities reflected him serving as a consultant for legislature, or liaison with the State Legislators. As we know state sessions are continuing so my understanding, and I saw a document to effect that, is that there will be an extension to the contract. Mr. Levin's contract would be not to exceed 30 days to allow additional time for him to continue or maintain his current responsibilities with the county. MS. LEE LOY: Thank you, Mr. Brilhante. I have no further questions. Page 7 FC -33 April 24, 2018 CHR. DAVID: Thank you, Ms. Lee Loy. Any other Council Members wishing to comment? Hearing or seeing none, all those in favor of filing Comm. 377.3 say "aye." Vote on Comm. 377.3: The motion to close file on Comm. 377.3 was carried by Filed the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles and Chair David – 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Mr. Clerk, we'll move to Order of Resolutions, 590-18. ORDER OF The Chair directed the Committee to proceed to the next order of business, Order RESOLUTIONS: of Resolutions. Res. 590-18: AUTHORIZES THE PAYMENT OF FUNDS OF A LATER FISCAL YEAR AND OF MORE THAN ONE FISCAL YEAR FOR A MULTI-YEAR LEASE REAL PROPERTY FOR THE COUNTY OF HAWAII FIRE DEPARTMENT Authorizes the Mayor to enter into a new five-year agreement with an option for an additional five years with Kaneshiro & Sons Enterprise, Limited and Glenn Kaneshiro Partnership, to allow for the continued occupancy of warehouse space located at 1990 Kino`ole Street, Hilo, with an approximate monthly cost of $4,958. Reference: Comm. 888 Intr. by: Ms. David (B/R) Motion to Approve: Mr. Richards moved to recommend adoption of Res. 590-18. Seconded by Mr. Kanuha. CHR. DAVID: I want to note that we have—Aloha, Hamana Ventura here in Kona office for questions, and I'm going to allow him to just give a brief description. (Note: At this time, Property Manager Hamana Ventura came forward to address the members of the Committee.) MR. VENTURA: Good morning Madam Chair, and members of the County Council. Hamana Ventura, Property Manager. We ask at this time for approval to extend this lease for additional five years at the current rate. As we move forward with our leases and so forth, we were looking at consolidation, looking Page 8 FC -33 April 24, 2018 for alternate locations as we move away from our Hawaii Hardware lease. And this would provide adequate, well not adequate, but a consolidated warehouse area to house Fire in addition to additional services. CHR. DAVID: Thank you very much. Any questions, Council Members? MS. LEE LOY: Chair? CHR. DAVID: Ms. Lee Loy, go ahead. MS. LEE LOY: Thank you. Thank you, Hamana for being there. What kind of stuff are we storing in that facility? And I appreciate, you know, we have like a five-year plan with an option to like extend for five years. I guess I'm just hopeful that maybe we can start to thin out some of the stuff in that storage, so we don't need that much space. MR. VENTURA: Initially we contracted the lease to assist Fire with having adequate storage, while they were going through renovations at central. Part of the process was to take items out of central, and go through their CIP (Capital Improvement Plan) projects. As they move forward, they have additional requests. And so as far as utilizing, going to continue to utilize the storage for equipment, beds, essential items that are related to fire. In addition as we transition away from Hawai `i Hardware, we find the need for additional warehouse storage as well. So we're going to utilize a portion of that. VRL (Vehicle Registration Licensing) has moved its cage from Hawaii Hardware to Fire warehouse as well, and so we constructed a secured cage for license plates and relay that items to VRL. Other departments are going to take a small percentage as well. MS. LEE LOY: Thank you, Hamana. I don't know if there's an opportunity, but we're just vacating the Kawailani Street fire station because we moved over to Haihai. And I'm sure that's all in the mix, so I look forward to supporting this resolution. But hopefully we have other opportunities where we can thin the need for storage out, going forward. Thank you, Hamana. MR. VENTURA: Mahalo. CHR. DAVID: Thank you, Ms. Lee Loy. Anyone else? Mr. Richards, go ahead. MR. RICHARDS: Thank you, Chair. Hamana how many square feet are we talking about? I was trying to read here— MR. VENTURA: Okay. So this warehouse we're talking 5,500 square feet. Page 9 FC -33 Vote on Res. 590-18 (Approved) April 24, 2018 MR. RICHARDS: And this is lease including utilities? MR. VENTURA: Utilities are in addition too, but the only utilities over there are turn on the lights when you enter and drop off. It's a warehouse. MR. RICHARDS: Okay, thank you. I yield. CHR. DAVID: Thank you, Mr. Richards. Anyone else? Hilo, no? Alright. All those in favor of approving Resolution 590-18, please say "aye." The motion to recommend adoption of Res. 590-18 was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles and Chair David — 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Mr. Clerk, please Bill 127. BILLS FOR The Chair directed the Council to proceed to the next order of business, ORDINANCES: Bills for Ordinances. (Note: Bill 137 was taken up earlier, out of order.) Bill 127: ADOPTS A PAY PLAN FOR PERSONS EMPLOYED BY THE COUNTY OTHER THAN THOSE WHOSE PAY IS OTHERWISE PROVIDED FOR, DESIGNATES PAYROLL PERIODS, PAY DAYS, PRESCRIBES REQUIREMENTS WITH RESPECT TO OFFICIAL FIDELITY BONDS, AND REPEALS ORDINANCE NO. 17-36 AND ALL AMENDMENTS THERETO, SAID ORDINANCE TO BE KNOWN AS THE SALARY ORDINANCE OF 2018 Establishes rates of compensation for appointed employees in the Legislative Branch and the Office of Housing and Community Development, the County Physician, and Student Helpers and Senior Community Services Aids for various County agencies. Reference: Comm. 840 Intr. by: Ms. David (B/R) Postponed: April 10, 2018 Page 10 FC -33 April 24, 2018 (Note: There is a motion by Ms. Eoff, seconded by Ms. Poindexter, to recommend passage of Bill 127 on first reading; and a motion by Ms. O'Hara, seconded by Ms. Ruggles, to amend Bill 127 with the contents of Comm. 840. 1.) ; and Comm. 840.1: From Council Member Eileen O'Hara, dated April 5, 2018, transmitting proposed amendments. CHR. DAVID: Thank you. Discussion, Council Members? Ms. O'Hara, go ahead. MS .O'HARA: I believe we're still discussing Communication 840.1? CHR. DAVID: Yes. MS. O'HARA: Is that correct? Okay. This proposed amendment we discussed a little bit in the last meeting, but several of the Council Members indicated they needed additional time to give consideration to this small salary ordinance. This only applies to a small group of employees of the county who are not union employees and are not under the auspices of the Salary Commission. So it's a small handful of employees. The amendment that I proposed would add an extra step to each of the grades for the CA -1 which is the Council Aid, and the CLA-1 which is the legislative aide. And the reason for doing this is that in particular, in the case of the legislative aides, we have a number of employees who have reached the highest step through years of service and have nowhere to go for any type raise in their workplace. And in the case of the Council Aide one the initial salary is Step E, and I would say that even if the employee works a total of eight years, and receives step increases they would still not make $40,000 a year. I just want to draw all the Council's attention to a report by KHNL that came out yesterday, where it states that $40,000 a year is a very low income. This is relative to HUD (Housing and Urban Development) guidelines. And for an individual, this is still a very low income. In addition to other things that were discussed in our prior meeting, regarding the fact that these employees do not receive overtime in the form of time and a half. They do have flex time available to them, but it's a one-to-one ratio. In addition to that, something that was not discussed at the previous meeting is the fact that these employees are the most at -risk employees in the county because they are not covered by the union. They are at -will employees, meaning that they could be dismissed from their jobs immediately. And they're at risk of their jobs being turned over because of elections that occur every two years. Page 11 FC -33 April 24, 2018 Normally in a private sector when a positon has greater risk than in other types of work, that position is compensated at a higher rate. That is how risk is dealt with in our economy. So if we were to enact this amendment, if the Chair approves step moves December 2018, which would take January 1, 2019, and if all current employees remain in their positions—an assumption we know may not fully apply given at least one Council Member isn't running for re-election. But if we were to use those assumptions for the 19 positions that are covered by this amendment, the total cost to the county in fiscal year 2018-2019 would be less than $20,000 additional. In total less than $20,000 to potentially realize raises for this group of employees. Because we're only looking at half the year. That's not a lot of money to acquire even this tight budget that we're looking at. And I think I would ask for the Council Members' support for this amendment. Thank you. CHR. DAVID: Thank you, Ms. O'Hara. Ms. Poindexter, go ahead. MS. POINDEXTER: Yeah, and I think I stated the last time why I'm still not in support with this. Even if the Chair makes a decision, like my term would end as Chair in December. Whoever becomes Chair in December could chose to give the raise, and I just don't want to have an increase in our budget at this time. I don't think it's the right time to increase our budget, because we would have to put in for that and take it into consideration. You know, it's not as simple as the dollar amount on those increases because we have to take into consideration also the benefit side that doesn't show up in the dollars too, right now. You know, with unemployment taxes that would go up, we would have other things that would be affected by a higher increase in someone's pay. So I'm not in favor of increasing our budget at this time, so I'm not supporting this. I'm hoping that we can take a look at this maybe on the next fiscal year. Thank you. CHR. DAVID: Thank you, Ms. Poindexter. Anyone else? Ms. O'Hara, go ahead. MS. O'HARA: Thank you, Chair. Just in response to that. This isn't really an increase, because it's depending upon Chair approval number one. It's just adding steps, so it's not a direct increase. And I do appreciate the comment about the benefits, which is usually figured about 30 or one third percent. So even with benefits its $25,000. There are physicians that are funded in our departments that are currently vacant. I do not see this as an increase in the overall budget, I just see it as shifting money around. So for those reasons, and because it's a very small sum. And because this is the only group of employees that has not seen a raise, or an incentive to continue the great work that they do for us, I would like to advocate that my fellow Council Members support this amendment. Thank you. CHR. DAVID: Thank you, Ms. O'Hara. Ms. Poindexter. Page 12 FC -33 April 24, 2018 MS. POINDEXTER: I'd like to respectfully disagree that we don't have to increase the budget, because we don't know what the next Chair's decision will be. So we have to build it in the budget, so we have to increase the budget. There's no way to get around that. But anyway, so that's all I have to say, and I'm still not supporting it. Thank you. CHR. DAVID: Thank you, Ms. Poindexter. Anyone else wishing to comment, before I take the vote on the amendment? MS. LEE LOY: Chair? CHR. DAVID: Go ahead, Ms. Lee Loy. MS. LEE LOY: I actually need just a little bit more background, and maybe Deanna since she's still here, or Mr. Brilhante. And Ms. O'Hara actually raised it, which triggered the thought, is that we actually have some positions that are vacant. I'm just speaking from personal experience. When I hired staff, it took me a while to find an individual that I thought would be the most perfect fit and has incredible skill sets. And so my position for that employee sat vacant for I believe six or if not seven months. So I guess my question for Deanna is, because it's budgeted where does—that money that's not being expended for the employee, where does that go? And where does it get parked, and is it still available to us? (Note: At this time, Finance Deanna Sako came forward to address the members of the Committee.) MS. SAKO: Good morning. Deanna Sako, Director of Finance. In any given fiscal year, each department is given their S&W (Salaries and Wages) budget. And you know, we try to do it one on one with each position. But yes, sometimes there are vacancies or other changes, or we realize employees are working out of class, and there's just other salary changes that need to be made so that money is available to the department for the entire fiscal year, on however they chose to spend it. But then at the end of the year any unspent funds would go back into Fund Balance, which you know, we budget as a revenue item for the following fiscal year to try and keep the tax rates down. MS. LEE LOY: And if we don't utilize it, it goes back into the General Fund and it's in that Fund Balance pool of money? MS. SAKO: Yes. MS. LEE LOY: And does that happen too, if we don't use like all of our DAE (District Allowance Expense) funds, or— Page 13 FC -33 April 24, 2018 MS. SAKO: Any funds that lapse at the end of the fiscal year would go back into the Fund Balance, as well you know, additional revenues that we may have collected. All the overages and underages in each account, basically end up in Fund Balance at the end of the year. MS. LEE LOY: I don't know if this is a question for you, but maybe for Mr. Brilhante. With these positions is there a minimum qualifier, like for example, we have a SR -18 rating and has a minimum skill set or they have to pass a test? MS. SAKO: The minimum qualifications like the other positions have? MS. LEE LOY: Right. In this Salary Ordinance plan or pay plan, are there minimum qualifiers for the positions? (Note: At this time, Director of Human Resources William Brilhante came forward to address the members of the Committee.) MR. BRILHANTE: Good morning, again. William Brilhante, Director of Human Resources. In response to your question, Council Woman Lee Loy. These positions are appointed positions, so they really don't have a minimum qualifications. It's incumbent on the Council Member, who request that they be appointed. They vet the applicant properly, and like you stated earlier, you know, you're going to wait until you find somebody who meets your needs. And as long as you're comfortable with the capabilities and the ability that the individual brings to the table, then my understanding is you forward that appointment to Ms. Poindexter, the Council Chair. And then the process begins from there. MS. LEE LOY: Do you know, or maybe Ms. O'Hara do you know, how many of these positions are women? MS. O'HARA: I don't off the top of my head, but I think the majority are. I'm looking next door, because Jen (Ruggles) has two male staffers. I think she's the only one, and I the majority are women definitely. Yeah, thanks for the question. MS. LEE LOY: I just know that Ms. O'Hara has constantly advocated for equal pay for women doing work as men, but that might be something else. I yield at this time. Thank you. CHR. DAVID: Thank you, Ms. Lee Loy. Anyone else wishing to comment? Ms. O'Hara. MS. O'HARA: I actually have a question for Deanna, if I may. Sorry Deanna. Ms. Lee Loy brought up some good questions with regard to our DAE, and any unused salary funding that we budgeted for that goes back into the General Fund Page 14 FC -33 April 24, 2018 and into the fund balance. What is the case with unexpended CRF (Contingency Relief Funds) funds? MS. SAKO: Same thing. They lapse and go back into Fund Balance. So every department does their best to get them encumbered; or you know, whichever department those Contingency Relief Funds were distributed too. The department does it's best to encumber by June 30. MS. O'HARA: Okay, so that also has a potential to roll back into the Fund Balance? MS. SAKO: Yes, it does. MS. O'HARA: Because of the amount, we're looking at an impact of somewhere between $20,000 to $25,000 if you include all of the benefits. Would you say it would be comfortable to assume that it would be available out of the Fund Balance, if that were to happen in January? Because there's many unknowns, and we don't know if staff that is current will be continuing. We have a lot of unknowns here. MS. SAKO: There are a lot of unknowns. I mean it's possible, I do not know what the end of the year Fund Balance would be yet. There definitely could be vacant positions within any of the departments between now and that time next year, yes. And you know, the administration's departments use a transfer form; Council and Clerk use resolutions to transfer money. But you know, that's also available to transfer between categories as well. You know, whether it's OCE (Other Current Expenses) or equipment, salaries and wages, you know, to transfer between categories. MS. O'HARA: Okay, thank you for that. So it does sound like this amount of money, which is not a lot of money would be available if we moved in this direction. Thank you. CHR. DAVID: Thank you, Ms. O'Hara. Ms. Eoff, go ahead. MS. EOFF: Thank you, Madam Chair. This is actually tough for us, because it is hard to get, to offer somebody a job that you can only guarantee it for two years. And when they come in they do start at one of the—not at the top, they start at a lower step. And you do have the ability to give your staff a step raise periodically. I'm having a problem, because I want to acknowledge the hard work of our staff, and we depend on them a lot. And the Council as a whole depends on the hard work of all of the staff. It's not like our staff only serves us, our staff helps the entire operations of the Council. And so in one way I'm tempted to support the goal to aspire for, you know, these people. I know some of them do stay after a Council Member leaves, and so they could stay at their higher Page 15 FC -33 April 24, 2018 level. But often times we do get new staff, and so it is fair that they come in lower because they have a learning curve. But this is really tough for me, and I know Ms. O'Hara did make a point of the total additional cost into the budget. It's not too much, I mean it's something to consider. But it's not exceptionally going to make or break the overall budget, I don't think. So I'm still kind of tossing this around, you know, and I can see the increase to the next step would only be really a little over couple thousand dollars a year in each section, correct? The CA -1 and the CLA-1, the additional increase. But I know that is something, and people want to look for jobs and want to be able to afford the high cost of living that we have in the islands. And they do need to have some incentive that their hard work would pay off. So that's my thoughts for now. I'm a little bit still deciding here, so thank you for continuing the discussion. CHR. DAVID: Thank you, Ms. Eoff. Anyone wanting to comment? Ms. O'Hara MS. O'HARA: I just wanted to response to Ms. Eoff s comment or kind of question. It varies what the increase is going to be, varies depending on which positon and which step the employee is at. Many of our Council Aides are in the lower step area if not the next lowest step, the next lowest step and the difference is about $1,700. If you look at the Legislative Assistants and the new step added, that's the biggest difference that you'll ever see in this chart and that's more in the neighborhood of $2,500. But overall averaged out it's about $2,000 per employee that would be passed over. And I personally see that as an incentive that our employees need. Any employee needs incentive in the workplace. I mean it's wonderful that we have things like employee appreciation days, and things like that. At least I believe the Chair and Vice Chair do expend some money to show those appreciations to our staff, such an appreciation lunch. But overall our employee's would be most appreciative of a higher pay, and this isn't a lot of money per employee. And as I said before, they're the only group of employees in the county that aren't seeing a raise. And the amount somewhere between $20,000 and $25,000 for the next fiscal year if it were all to happen. And if you know, status quo, we don't know that yet. But it can't be more than that, it would only be less than that. And when you think about that relative to the increase that each of us received from the Salary Commission actions, in relative terms, I think this is very much needed. And I ask for your support. Thank you. CHR. DAVID: Thank you, Ms. O'Hara. Ms. Eoff. MS. EOFF: I just like to ask a follow-up question. Steps have to go in sequence, right? An employee can't go say from F to H, don't they have to go to G first? Page 16 FC -33 April 24, 2018 Or is that arbitrary, or is that up to the Chair to decide? Okay, I think I got my question answered. Thank you. MS. O'HARA: What was the answer? I'm sorry. MS. EOFF: The answer was, that they don't have to go step by step. It's up to the Chair to decide if a request was put in, and an employee could move two steps. MS. O'HARA: Thank you. The HR (Human Resources) Director over there is acknowledging that's correct. MS. EOFF: That's correct? Okay, thank you. CHR. DAVID: Thank you, Ms. Eoff. Ms. Poindexter. MS. POINDEXTER: Yeah, and I think you know, it was stated that some are on the very low end of the scale. I don't think anyone has started on the low end, I think the purpose of bringing E, D, it was A, B, C, D and then we put in E, F, G, H, so that people start at E. So the lower end of the scale, I don't think anyone is at that low end of the scale. Thank you. CHR. DAVID: Thank you, Ms. Poindexter. Anyone else? Mr. Chung. MR. CHUNG: Thanks. Yeah, I continue to support this measure. I think our employees should be at least given the opportunity to aspire to a higher pay scale. You know, I'm kind of troubled by this whole austerity program that's being advanced by some who might be against it. I think one way we can address it really, when I look at it, I'm trying to just look at it from the prospective of our employee's. If tightening the budget is of the utmost importance, then what we've got to do is cut out for the next year out of state travel. Because when you look at it we have our employees not being able to get to higher grade, and then seeing some of us travel, you know, to conferences and other places afar. That's the most logical place to cut I would say, so let's just kind of consider that. Maybe for the next year or so just cut that kind of stuff out, out of state travel. Thanks. CHR. DAVID: Thank you, Mr. Chung. Anyone else? Mr. Richards. MR. RICHARDS: Thank you, Chair. Been listening, and I think I want to weigh in on this. We are talking about fiscal responsibility, and I get that. On balance with that is supporting employees that I think the term we depend on them is an understatement, we heavily rely on our staff. And having the opportunity to advance, is always a really good thing. I've listen to a conversation about Page 17 FC -33 April 24, 2018 employees at risk, meaning we're on two-year terms and every other year theoretically we could be changing staff, and I get that part. And one other thing I think we haven't mentioned but is a big concern for me coming from the private sector, is the cost of changing employees and the cost of educating or bringing up to speed a new employee. And though that's a very much hidden cost, it's a very expensive cost. I've always calculated that as about one year salary to bring them up to speed to start contributing. And so listening to conversations, I don't disagree to what Mr. Chung is saying concerning if we need to look at tightening the belt some place. But I don't think it's tightening the belt on our employees, because they're the ones that support us and give us the ability to function efficiently in Council. So I will be supporting this amendment for the reasons have articulated. I yield. CHR. DAVID: Thank you, Mr. Richards. Ms. Ruggles. MS. RUGGLES: Thank you. And I just wanted to say that, like I said last committee meeting when this came up, was that I had already lost one really good staff. Because the pay was not simply not good enough, she was making less than $10 an hour. We just got our presentation a few months ago from the Neighborhood Place of Puna about living wages for our island. In fact the majority of the steps here are not living wages for Hawaii. They cannot afford rent, making what they make. And our staff are the nuts and bolts of our office, and they work really hard. It's a very difficult job interfacing with the public, and having to navigate the bureaucracy with all of the politics involved in it. It's takes a lot of brain power and patience. And as a Council person, I know that if my staff are not happy, my constituents are not happy. And the public is not happy, and that we're not doing our jobs well. So I do think that even just having this step as an opportunity for them to move up is a beneficial thing for the public. With that I'll yield, thank you. CHR. DAVID: Thank you, Ms. Ruggles. Anyone else? Ms. O'Hara. MS. O'HARA: Yes. I have a question for Mr. Brilhante, since he's still here. And that is if we are not using steps A through D, why do we retain them on the salary schedule if we're not utilizing them? MR. BRILHANTE: Good morning again, Wil Brilhante. Actually it's incumbent on you, to make that change if there's a proposed amendment on the floor. CHR. DAVID: One second, Mr. Brilhante. I have a point of order. Mr. Chung your point. Page 18 FC -33 April 24, 2018 Point of Order: MR. CHUNG: She spoke more than three times, already. CHR. DAVID: Who did? MR. CHUNG: Ms. O'Hara. CHR. DAVID: Ms. O'Hara. You're just making that note? Okay. Alright so noted. Ms. O'Hara, Mr. Chung's point of order was that you spoke more than three times, so I'm going to allow Mr. Brilhante to finish that and that would conclude the question. MR. BRILHANTE: Again, William Brilhante. I was kind of hoping it was me who spoke more than three times. But anyway going forward just to reiterate what I said previously, it relates to the steps being on the ordinances. It would be incumbent upon you or somebody in the Council to submit a proposed amendment to remove those bottom steps. And until that happens it will always be a part of the ordinance going forward. CHR. DAVID: Thank you, Mr. Brilhante. I will now go to Ms. Eoff. MS. EOFF: I was just sort of thinking of what we were talking about, money unspent that's in our budget goes back to General Fund. And I feel like our DAE is pretty high, a lot of our DAE goes back to General Fund. I don't know if I would make it to where you wouldn't allow certain things with it, but at least you could reduce that number if we're trying to balance our budget with this additional money. That would be something to look at. Thank you. CHR. DAVID: Alright, thank you. Anyone else? I believe we're done, then. Mr. Clerk, could you please do a roll call on the proposed amendment. Vote on Amendment: The motion to amend Bill 127, with the contents of (Approved) Comm. 840.1 was carried by the following roll call vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Richards, Ruggles, and Chair David — 8. Noes: Committee Member Poindexter — 1. Absent: None. Excused: None. CHR. DAVID: Now we move back to Bill 127 as amended. Any discussion before I take the vote? Hearing and seeing none, all those in favor of approving Bill 127 as amended with the contents of Comm. 840.1 please say "aye." Page 19 FC -33 Vote on Bill 127: Draft 2 (Approved) The motion to recommend passage of Bill 127, as amended to Draft 2, was carried by the following voice vote: Ayes: Committee Members Chung, Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles and Chair David — 9. Noes: None. Absent: None. Excused: None. CHR. DAVID: Thank you very much. Mr. Clerk, Bill 136. April 24, 2018 Bill 136: AMENDS ORDINANCE NO. 17-39, AS AMENDED, THE OPERATING BUDGET FOR THE COUNTY OF HAWAII FOR THE FISCAL YEAR ENDING JUNE 30, 2018 Increases revenues in the Transfer from General Fund account ($4,800); and appropriates the same to the Highway Maintenance Administration -Other Current Expenses account. Funds would be used by the Department of Public Works for the annual rental of a portable toilet to be located at Banyan Beach in Kona. Reference: Comm. 887 Intr. by: Ms. David (B/R) Motion to Approve: Mr. Kanuha moved to recommend passage of Bill 136 on first reading. Seconded by Mr. Richards. CHR. DAVID: Mr. Kanuha, go ahead. MR. KANUHA: Thank you. Just real quickly, this was the accompanying bill to my resolution that appropriated money from my district contingency funds for the portable toilets at Banyan's. Mahalo to Public Works for working with my staff and myself, in getting these toilets for public health reasons. Thank you guys, and I ask for your support. CHR. DAVID: Thank you, Mr. Kanuha. Anyone else wishing to comment, Hilo? No? Alright, all those in favor of approving Bill 136, please say "aye." Page 20 FC -33 April 24, 2018 Vote on Bill 136: The motion to recommend passage of Bill 136 on first (Approved) reading was carried by the following voice vote: Ayes: Committee Members Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles, and Chair David — 8. Noes: None. Absent: None. Excused: Committee Member Chung — 1. CHR. DAVID: Mr. Clerk, I believe that concludes the Finance Committee agenda? Alright, may I have a motion to adjourn? ADJOURN There being no further business, at 11:26 a.m., Mr. Richards moved to adjourn the MENT: meeting. Seconded by Mr. Kanuha and carried by the following voice vote: Ayes: Committee Members Eoff, Kanuha, Lee Loy, O'Hara, Poindexter, Richards, Ruggles and Chair David — 8. Noes: None. Absent: Committee Member Chung — 1. Excused: None. CHR. DAVID: Thank you very much. We are adjourned. Approved: Ms. Maile�'c�edeiros David, Chair Finance Committee MD/rk (bate) Page 21