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HomeMy WebLinkAboutREP FC 079 2019/11/05 2018-2020 REPORT OF THE COMMITTEE ON FINANCE DATE: November 5, 2019 Re: Comm. No. 555/Res. No. 363-19 PLACE: Council Chambers Hilo, Hawaii TIME: 11:35 a.m. Council Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Finance, to which was referred Resolution No. 363-19, reports as follows: Resolution No. 363-19, transmitted by Finance Director Deanna Sako, via Communication No. 555 dated October 18, 2019, transfers/appropriates an appropriation out and from a designated fund account and credits same to a designated fund account. This resolution transfers $2,079,110.50 from the Finance Administration & Budget Salaries and Wages account and credits to various department's Salaries and Wages accounts, for overtime costs associated with the first quarter of Fiscal Year 2019-2020. Council Member Susan L.K. Lee Loy questioned Finance Director Deanna Sako regarding the approximately$1 million in overtime for the fire department. Ms. Sako responded that it is typical in any given year and that part of this amount also includes Emergency Medical Services (EMS). In addition, Ms. Sako noted that the fire department is short on employees at this time,however, as positions are filled at the various stations, it is hopeful that the overtime will be less. Ms. Lee Loy asked if the overtime is due to rank for rank or because of contractual bargaining unit agreements given that there were no disasters within that time period. Ms. Sako explained that some of it is attributed to the department's presence on Mauna Kea, and part of it is rank for rank,because when a firefighter is out sick or on vacation, the department has to cover the position rank for rank. Also, she noted that firefighters may be called back to work in times of a natural disaster. Council Member Herbert M. "Tim" Richards, III, stated he is bothered by the fact that there is so much overtime within the fire department. Ms. Sako responded that even if the fire department was not short staffed, and every position was filled, people would still have vacation and sick leave and their absence would have to be covered through overtime. Fire Chief Darren Rosario commented that they had been tasked with their overtime report and were 100 percent transparent. $1.6 million is a normal overtime amount for the department because the majority of overtime shown in the report is contractual overtime for things such as paid holidays. Chief Rosario explained it is divided it into controllable overtime and non-controllable overtime. When the contractual overtime is taken out, that leaves manageable overtime for the 470 plus employees which amounts to about $1,000 for the whole year per position. He also explained the overtime is driven by emergencies, search and rescue, and wildfires. In the long run it may look like overtime,however, FC Report No. 79 FC-79 Page 2 November 5, 2019 during times of need, Chief Rosario explained they may call additional personnel to mitigate the incident. Chief Rosario also made clear that at no time did the fire department waste money, they did what needed to be done in order to provide the service that is expected of the men and women of the department. He noted the overtime was high, however the department has 470 plus employees and 150 volunteers that don't get paid. Chief Rosario also stated that the department operates very lean and, in fact, struggles at times to get the mission done. The amount may look large,but Chief Rosario stated the fire department is a very large department with huge responsibilities. Ms. Sako explained that every department has different reasons and different factors that are attributable overtime. Council Member Ashley Kierkiewicz asked what percentage of the budget are salary and wages? Chief Rosario responded he believed it to be about 83 percent and noted that when the department is tasked with a budget cut scenario the cut comes out of other current expenditures and thus diminishes each year and becomes more difficult to manage. Chief Rosario noted that the department has consistently sought alternative funding such as grant opportunities and has had a success rate of 80 percent. He also praised and thanked the Sayer Foundation who have consistently supported the department with much needed equipment. Ms. Sako explained that when the budget is prepared, the numbers are based on the prior year and the departments adjust, as necessary, depending on what the demands are. Most departments have vacant positions, so part of the overtime is related to that. Your Committee on Finance is in accord with the purpose and intent of Resolution No. 363-19, and recommends its adoption. dorm AYES NOES ABS EX Respectfully submitted, CHUNG X DAVID x COMMITTEE ON FINANCE EOFF X KANEALI`I-KLEINFELDER X KIERKIEWICZ X r LEE LOY X POINDEXTER X MAILS MEDEIROS DAVID, CHAIR RICHARDS X FC REPORT NO.:. 79 VILLEGAS X ADOPTED: NOV 2 0 2019