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2023-09-07 Salary Commission Minutes
REGULAR SESSION Salary Commission Hilo Council Chambers Hawaii County Building 25 Aupuni Street, First Floor, Room 1401 Hilo, Hawaii September 7, 2023 (Thursday) Call to Order (Item 1) The regular meeting of the Salary Commission, County of Hawaii, was called to order at 10:00 a.m. by Chair Steven Pavao, at the Hilo Council Chambers, Hawaii County Building, 25 Aupuni Street, First Floor, Room 1401, Hilo, Hawaii, on Thursday, September 7, 2023. Roll Call — Present Mr. Steven Pavao, Chair Mr. Dawood Y. Farahi, Vice -Chair Mr. Jules Dudoit, Member Ms. Donala Kawa`auhau, Member Ms. Teresa T. Nakama, Member (via ZOOM) Ms. Luahiwa Namahoe, Member Mr. Sam Nelson, Member Mr. Dennis Riordan Member Mr. Danny B. Patel, Ex -Officio Member Absent and Excused Ms. Judy Greenbaum Also Present Ms. Dakota "Cody" Frenz, Deputy Corporation Counsel, Office of the Corporation Counsel Mr. Lee Lord, Managing Director, Office of the Mayor (via ZOOM) Ms. Michele Lamkin, HR Program Specialist, Human Resources Department Mr. Kelden B. A. Waltjen, Prosecuting Attorney, Office of the Prosecuting Attorney (via ZOOM) Mr. Stephen Frye, First Deputy Prosecuting Attorney, Office of the Prosecuting Attorney (via ZOOM) Mr. Rick Robinson, Chair, Police Commission (via ZOOM) Ms. Glynis Yamada, Secretary -Reporter, Human Resources Department Commission members will participate in-person, via ZOOM, or by teleconference. Members of the public may attend this meeting either in-person at the meeting location or via ZOOM. Salary Commission Call to Order (Item 1) September 7, 2023 CHR. PAVAO: Good morning, we'll go ahead and call the meeting to order. We'll take rollcall for the sake of the minutes, if you can start down here on my left—your name and your "present." MR. NELSON: Sam Nelson. MS. NAMAHOE: Luahiwa Namahoe. MR. FARAHL Dawood Farahi. CHR. PAVAO: Chair Pavao, present. MS. KAWA`AUHAU: Donala Kawa`auhau. MR. RIORDAN: Dennis Riordan. MR. DUDOIT: Jules Dudoit, present. CHR. PAVAO: And on ZOOM. Are there any members of the Commission on ZOOM? No? MS. FRENZ: Commissioner Nakama, are you on ZOOM? CHR. PAVAO: I don't see her. Maybe she's still trying to log on. MS. FRENZ: We do have a quorum, though, Chair Pavao. This is Deputy Corporation Counsel Cody Frenz. We also have Acting Director Danny Patel present, Ex -Officio Officer; and our Secretary Glynis Yamada, present. Chair, just one housekeeping matter, everyone. This is new technology within County Council, so if we could please have everyone ensure the microphone is close enough to you the red light turns on and prior to speaking, identity yourselves—such as "Commissioner Pavao, Commissioner Namahoe," et cetera. Thank you. CHR. PAVAO: Chair Pavao, you might have to lower the mic. (inaudible) way up high. Thank you. Statements from the Public (Item 2) CHR. PAVAO: So, we'll move on to agenda Item number 2, which is "Statements from the Public" on the agenda items. Any statements from the public that were received? No? Okay. Page 2 Salary Commission Approval of Minutes (Item 3) July 11, 2023 and August 4, 2023 September 7, 2023 CHR. PAVAO: Then we'll move on to Item number 3, which would be the approval of the minutes. July 11, 2023 CHR. PAVAO: We'll first look at the July 11�', 2023, minutes that has been circulated. Any comments, changes, corrections, deletions? If not, the Chair will entertain a motion to accept the minutes, as submitted. MR. NELSON: So, I'll this is Nelson. I'll make a motion to accept the minutes, as written. CHR. PAVAO: Thank you. A second—anybody second? MS. NAMAHOE: Namahoe—second. CHR. PAVAO: Thank you. Okay. We'll go ahead and vote then. All those in favor—any discussion on the minutes? If not, we'll go ahead and vote. All those in favor of accepting the minutes, as submitted, for July 11, 2023, please signify "aye." Any opposed signify by saying LC J) nay. The voice vote was as follows: AYES: Commissioners Farahi, Dudoit, Kawa`auhau, Namahoe, Nelson, Riordan, and Chair Pavao – 7. OPPOSED: None. ABSENT & EXCUSED: Commissioners Greenbaum and Nakama - 2. CHR. PAVAO: The motion is carried, the minutes are accepted. August 4, 2023 CHR. PAVAO: We'll move on to the August 4h, 2023, minutes, as circulated. Any comments, any corrections? If not, the Chair will entertain a motion to accept the minutes of August 4, 2023, as circulated. MR. NELSON: This is Nelson—I'll make a motion to approve. CHR. PAVAO: Okay. Second? Anyone second the motion for the minutes to be approved August 4h? Page 3 Salary Commission September 7, 2023 MS. NAMAHOE: Namahoe—second. CHR. PAVAO: Okay. Thank you. It's been moved and second to approve the minutes of August 4h, 2023. Any comments? If not, we'll go ahead and vote. All those in favor of accepting the minutes of August 4h, 2023, as submitted, signify by saying "aye." All those opposed, signify by saying "nay." The voice vote was as follows: AYES: Commissioners Farahi, Dudoit, Namahoe, Nelson, Riordan, and Chair Pavao – 6. OPPOSED: None. ABSENT & EXCUSED: Commissioners Greenbaum and Nakama - 2. ABSTAIN: Commissioner Kawa`auhau –1. CHR. PAVAO: The ayes have it and the minutes are accepted as submitted. Thank you. MS. KAWA`AUHAU: Commissioner Kawa`auhau. Can I abstain? CHR. PAVAO: Yes, no problem. Thank you. So one abstention for the minutes of August 4h. Communication(s) (Item 4) CHR. PAVAO: And we'll move on to "Communications"—seeing that we have no communications, we'll move on to the next item New Business (Item 5) Communication No. 23-13, Received On August 4, 2023, From Salary Commissioner Judy A. Greenbaum, Transmitting A Hawaii County Executive Salary Worksheet Incorporating An Across -The -Board (ATB), Proposed 18 Percent Salary Increase For All Executives. (Reference Materials Include Inflation Calculator, Hawaii County Population, And Maui County Population.) At Its Meeting Held On August 4, 2023, The Commission Unanimously Approved Commissioner Greenbaum's Offer To Prepare A Worksheet Incorporating An 18 Percent ATB Salary Increase, As A Starting Point, For Discussion At Its Meeting Scheduled For September 7, 2023. (For Informational Purposes, Chair Steven Pavao And Commissioner Donala Kawa`auhau Were Absent.) CHR. PAVAO: which it'd be "New Business" for discussion and appropriate action. So, one communication we did get is Number 23-13so, we have some discussion about that communication? MR. PATEL: Chair, if I can? Page 4 Salary Commission CHR. PAVAO: Yes. September 7, 2023 MR. PATEL: Just to, sort of, ground the Commission as they start to move forward now with the proposals that have been submitted. A few housekeeping matters. I believe we still have not received anything from the Fire Commission, but they will be meeting towards the end of this month to potentially put something forward. So, we'll be working with them on providing some information that they might request. Beyond that, just so there's a picture of the process going forward and what your discussions here today could potentially lead to future meetings—and DCC Frenz, please, jump in to correct me or clarify anytime along the way. So, just for hypothetical purposes, right—so you understand the process going forward. If a proposal was voted on and agreed to today by the Commission, again, it would just be a "proposal," what then would have to happen is that, I believe, Chair Pavao and DCC Frenz would work together to put—reduce that proposal into a report. The report would include findings, conclusions, discussion points—of what the Commission considered in putting forth their proposals for any potential salary adjustments. That report would then be agendized at the next meeting for the Commission's review and to, ultimately, vote on and approve. If it is approved, that then needs to be submitted to the clerk's office and mayor's office—also notice needs to be published within two County newspapers—West Hawaii, East Hawaii. A public hearing would need to be set for the public to come in and provide the Commission with input. After that public hearing and no sooner than 30 days after that public hearing, the Commission would then meet again in another regular meeting to take action or vote on and decide what they wanted to do as far as implementing any pay adjustments. So, there's a process. You're looking at, at least, several more meetings. Again, just in the hypothetical scenario, where a proposal is put forth today. As I just mentioned, Fire Commission might be submitting additional information. So, what that means is, if there was basically a tentative proposal today, that could still be reduced to a report at the next meeting you could still consider any additional information—adjustments could be made to the report. You can still vote. That's the basic process to give you an idea of timeline. Also, as you start having your discussions on these draft proposals put forward pursuant to the last meeting, Commissioner Page 5 Salary Commission September 7, 2023 Greenbaum submitted the spreadsheet with information, which you now have all seen (SEE ATT. A, COMM. NO. 23-13). I just wanted to clarify, in your green folders labeled "Presented Documents" you will have this colored sheet (SEE ATT. B, COMM. NO. 23-04). The spreadsheet that Commissioner Greenbaum was working off of was the spreadsheet that, essentially, compared all the jurisdiction salaries. For purposes of this Salary Commission, however, as you go through your proposals you are only setting the salaries for the specific positions listed on this sheet. These are the County positions. This is the last "Pay Plan for" County "Executives and Elected Officials." So, for example, you wouldn't be setting the salaries for Deputy Prosecuting Attorneys or Deputy Corp. Counsel. And you are also not setting the salary for the Chief Engineer for Water they are semi -autonomous. The Water Board sets their salaries. Thanks. MS. FRENZ: This is DCC Cody Frenz. I just want to note that Commissioner Nakama has now joined us via ZOOM. We already had a quorum but I'm just noting that she has now joined us. Thank you, Chair. CHR. PAVAO: Okay. Thank you. Okay, again, Chair Pavao—any discussion by the members what is on this submittal by Commissioner Greenbaum or other information that we have at this point? MS. NAMAHOE: Commissioner Namahoe. Thank you so much, Commissioner Greenbaum, for working on this. I know that we didn't have full quorum or full the full Commission last time. We did have some excused absences. Just as a reminder—and I'm saying this now because it's also a refresher of my own information that I've been working off of. We said 18 percent because this was the lastCommissioner Riordan, since it was your suggestion, could you please clarify, again, where the 18 percent came from? MR. RIORDAN: That was based on the amount that the unions have gotten since the folks that we're looking at their salaries in 2018 that the unions have gotten that—close to that amount of 18 percent. I mean, it was a little over but I just put it out 18 percent. MS. NAMAHOE: Thank you. I just wanted that on record, again, before we go forward. There's a lot of information that we're working with. CHR. PAVAO: Again, Chair Pavao. Can I ask Mr. Patel the 18 percent, to the best of your knowledge, does it include the 4 or 5 percent raises that most of the collective bargaining units just got July 1" 2023? Page 6 Salary Commission September 7, 2023 MR. PATEL: That would but I would like to clarify. So, when we're looking at the collective bargaining the various units—for purposes of this Salary Commission you're generally looking at three different ones. So, BU11—fire fighters; BU12 police. And as you can see in the information previously provided, their percentages are different. The third bargaining unit you're looking at is BU13, which would be the professional scientific. So, you were previously provided the summary of the percentage increases, so I just wanted to clarify (SEE ATT. C, COMM. NO. 23-09). Thank you, Commissioner Namahoe, for bringing it up. If we look at BU13, the percentage increase—and this is starting July 1, 2018. Every year through the next, what will be July 1, 2024—if we add those up for BU13, we're looking at roughly a 16 percent increase. And then, obviously, some of the other BU's have different percentages, but—so, generally, again, we're looking at BU11, 12, and 13. So, roughly, 16 percent. CHR. PAVAO: Excuse me, again. Chair Pavao. So, if you take all of the bargaining units and try to come up to an average, is the average 18 percent? I'm trying to figure out where the 18 percent came from. MR. PATEL: I'm not sure where the 18 percent initially came from. It might have been from BU14 and 15, which has 18 percent. That would not, typically, be the comparable. But then, if you are also looking at setting the salaries slightly higher, right, then you would be looking at slightly higher than the 16 percent. CHR. PAVAO: Again, Chair Pavao. But, yeah, it could be the Commission has always been trying to play catch-up with the collective bargaining unit raises. I mean, in my mind, the ideal situation at this point—unless we intend to convene and address raises again next fiscal year that we should incorporate whatever the collective bargaining units have already negotiated starting July 1st, `24 as well. But that would be my suggestion. MR. RIORDAN: This is Commissioner Riordan. Aren't we also talking about these that the unions that report to the people on this list and they're making more money than their boss and that they're not in business unit only just 11, 12, and 13. CHR. PAVAO: Again, Chair Pavao. One of the issues, too, is that collective bargaining units negotiate but—yeah, many people are in excluded management positions—division heads that make more than their deputy directors because although they're not in the collective bargaining unit, most of them get the same raise that Unit 13 gets. So, over time, those are the problematic positions. Right now, there are a lot of people making more than the deputy directors, in some cases, real close to the director. Page 7 Salary Commission September 7, 2023 MS. KAWA`AUHAU: Commissioner Kawa`auhau. I wasn't here at the last meeting but I put together, not a proposal, but I kind of have some numbers. Is this where I would present it or is that— CHR. hat CHR. PAVAO: Yeah. MS. KAWA`AUHAU: Okay. So, I didn't look at I mean, I have the 18 percent there but I also looked at the information we were given with the purchasing power of the dollar. So, a dollar is now worth 79 cents when you're purchasing. So, if a dollar's worth 79 cents when you're purchasing, I went ahead and multiplied 79 cents by the amount of salaries. So, I just did the mayor `cause he was on the top. So, 162,582 x 79 cents means that, right now, he's making about 128, 439.78 in today's dollar, which if we just wanted, at least, make it where he was higher today, he would make the same amount that he made when he was hired originally. We would need to adjust for the 1.21. So, if we adjust 162,582 x $1.21 then that brings his salary to 196,724.22. And that's a difference of only about $4,000.00 between the 18 percent and the adjustment for the purchasing power of the dollar. And I only use the purchasing power of the dollar because that's why we have dollars, right, we got to buy stuff. So, when you buy stuff, if your dollar isn't worth a dollar anymore, we want to at least make sure that the base amount they're getting is, at least, the amount they were hired with—back in whenever they were hired. So, that was my thinking behind the numbers I had. CHR. PAVAO: Thank you. Chair Pavao. Again, I think the cost of living equation is a good idea. At the same time, we got to just be—in my opinion, we should be conscience about parity. Again, because we don't want to end up in a situation where subordinates continue to make more than their supervisors because then it becomes really hard to recruit and retain people, especially in the deputy director positions—in my mind. I know that the police department, for instance, has a hard time appointing a deputy chief because most of the assistant chiefs and majors make more than the current salary for the deputy chief. MS. KAWA`AUHAU: So, Commissioner Kawa`auhau. Yeah. So, I was thinking that's just like a base number to know where it would be—where they would actually be now, if they were hired today. And then, from there, look at the other salaries to make sure that there is some kind of incentive to be in that position. But at least we know how much they will be paid today, if they were hired today with the inflation put in—with the purchasing power difference put in. CHR. PAVAO: Yeah. I think it's—again, Chair Pavao. I think that's a good argument to make because I'm sure that when the unions go to collective bargaining or what it is binding Page 8 Salary Commission September 7, 2023 arbitration and negotiating with the employer—it's one of the issues, one of the facts they take on to the table is the cost of living. Yeah, so it's important (inaudible) for us to consider for sure. Anymore—any other comments from any other members? MR. NELSON: So, this is Nelson. So, I amI guess I put the 18 percent number, would bring it up to parity. I didn't realize it was 16 percent. So, that was my recommendation was to try to get everybody parity. But I think given the process that we're going to have, it's going to be months before anything actually gets implemented. So, I do think we should try to look at—for July—go up to the whatever the next bargaining unit is for BU13, that would be a cumulativeI'm not sure what that would be CHR. PAVAO: I believe it's 3.59 percent for July 1st, 2024. MR. NELSON: So, I think whatever it is to 2024, that percentage, I do thinkI think that's the percentage that we should (inaudible). CHR. PAVAO: We should include that. MR. NELSON: That would be my suggestion. CHR. PAVAO: Yeah. Because, otherwise, if we're going to—we'll have to meet again next year to play catch-up again. MS. NAMAHOE: Commissioner Namahoe. I'd like to add one more thing to the parity piece. And that is the fringe burden that the employee will face when they—what they'll see coming out of their check—the difference between gross and net. For the active EUTF employee this year, who takes their medical through this job—meaning their County job they had a decrease this year. I can't recall the last time we've seen decreases two years in a row. So, when we start to make decisions that will affect the 2024 year, we're also pushing against that rising tide. Just keep that as a reminder because, again, the largest cost for every employee on their paycheck is their—in their labor burden, is their healthcare cost. Thank you. CHR. PAVAO: Thank you. MR. FARAHL I explained CHR. PAVAO: Can you state your name, please. MR. FARAHL Huh? Page 9 Salary Commission September 7, 2023 CHR. PAVAO: Can you state your name, just for the record for the minutes. Can you state your name before you start talking just say your name. MR. FARAHL Oh, Dawood Farahi. CHR. PAVAO: Yeah. Thank you. MR. FARAHL I sent some of my thoughts through an email to all of you. And I thought about it a great deal over the weekend and the dilemma that we're facing. If you decided to give this in a lump sum and do it like this, then somebody would look at that blue sheet and say that's a green color, Danny—and they put the green color in this tan color next to each other—and the difference would be mindboggling. The reason for that is valid because these people have not been paid adjusted salaries in five years. But to the general public, all of a sudden, you're giving these people a 25 to 30 percent increase. I've faced that situation once in New Jersey and we figured out a different solution. But before I get to that recommendation, I ask you to think about making the decision first of what it is that you're telling or you're giving to these individuals this fiscal year or whatever fiscal year you start. Pass that resolution with the counting out of the base salary being what the arrears would determine. `Cause the arrears is a different ballgame. It needs to be determined separately, otherwise, you'll be facing a monumental issue. So, once you decide that the 18 percent, let's say, the arrears are worth 18 percent, there're two ways in doing that. One, is your 18 percent—let's say, 100,000 salary that will be $118,000.00. But if you did it correctly in a cumulative fashion, that you gave them three -and -a - half percent in 2018, three -and -a -half percent on top of that in 2019da, da, da, da, da, da that creates a different number, which is a fair number and the right number. Another parity to this is the unions usually—well, actually normally, never talk about performance or increments or anything in between they are looking at a lump sum number. In other words, we negotiated 7 percent annually, so if you decide for this in cost of living in three years the minute you bring up the performance-based adjustment, they say all our members are doing the same performance level and everybody has to get paid the same. This is normal nationwide now. It's a basic policy. So, you need to keep that in mind. And we also need to keep that—the fact, in mind, because the negotiated one will negotiate the changes in healthcare and other benefits would be incorporated into the system. So, if you're now paying one-tenth of 1 percent and it changes to two -tenth of 1 percent, the negotiated one with the collective bargaining agents will be taken care of in their contract. But the executive salaries you just took another $200.00 away from them. And the third comment I would like to make is whether you're talking about a step or longevity you have to create a number that is performance-based. Otherwise, you can't tell the Page 10 Salary Commission September 7, 2023 public that you did the right thing. For instance, the mayor decides whether to give or not give the performance -base to all the people that report to them. The commission pays—so on. And that also changes the number on the cumulative side and helps you stop this miserable situation where your subordinates are making more money than you are. It doesn't leave you any room to negotiate for some quality employees or peopleI still can't understand, my apologies for being that long-winded—why an employee would stay with you today, when you're paying them what you set in 2018? Why would they want to stay? If you were outside Hawaii in a competitive area where I came from New Jersey—half of these people will be gone. They wouldn't stay. Yeah. MR. RIORDAN: This is Commissioner Riordan. Most of these people weren't here in 2018. This is the recent mayor that got elected in 2020 and all the people that he appointed. I realize some of the, like, the police chief and the fire chief and maybe the liquor control they continue on. But all the rest of these people are political appointees. So, going back to the people that were here in 2018 and giving them a raise, that doesn't make sense. They're not even working here any longer. MR. FARAHL That's true. I thought about that, too. But, at the same time, you're telling the mayor, in this case, the ones that report to him—is you can't give that person that you want in 2020 more than what was the salary in 2018. Correct? CHR. PAVAO: I'm sorry, Chair Pavao. Only the Salary Commission has the authority to make the pay increases, the mayor doesn't. MS. FRENZ: So, this is Deputy Corporation Counsel Cody Frenz. I want to clarify two things. First, it's almost completely accurate, Commissioner Riordan, but Director Sako was, in fact, here at this time. So, just to clarify. She remained a consistent from the prior administration so, there are a couple of caveats. CHR. PAVAO: There's some carryovers. MS. FRENZ: Correct. That being said, I just want to clarify. I apologize if I'm beating a dead horse, but I need to say againI agree with the sentiment and the positions that Vice -Chair Farahi has indicated with one exception. The performance -base. Again, so that isI understand that you're adamant on that one, Vice -Chair, but that is something outside of this Salary Commission's purview. Even the mayor, under the Charter, the salaries are set. All we're doing here is adjusting and I don't think that even the Commission, here, has the authority, under the Charter, to provide that discretion even to the mayor. There are blanket positions. I mean, we can submit—you can submit to your district representation—representative in council to maybe consider a charter amendment, right, that the public can vote on, if we want to provide the mayor that ability to put a cap or a range by which he wants to then determine that that director is deserving of. Maybe they start at a lower rate and Page 11 Salary Commission September 7, 2023 they go higher but, currently, that's not the way our charter is written. That's not the way the laws are written. So, that I just I have to clarify again, that's outside of this Commission's purview for performance -base, merit-base—that's just not something that can be done. So, we have to stay away because if you take action in that regard, it can be set aside because it's outside of the purview and authority under this—under the charter for this Commission. MR. FARAHL Mr. Chairman, may I there's something I want CHR. PAVAO: Yeah. MR. FARAHL I read the Charter multiple times. It says, "set the salary" the word "set." And the job I had before, I have to tell youI had at least 17 in-house attorneys. My apologies to you never two of them give me the same advice that were identical. And in this particular case, I know if the council, if the Commission votes one wayI will add that because in the future for the benefit of the public, it is an important component that there has to be some connection between their performance and the additional money that they get. If the counsel believes, if they—counsel—in this case the attorney believes that that's a violation of the charter, then my recommendation would be to amend the charter to get that component into it. CHR. PAVAO: This is Chair Pavao. I think that's a great idea. I mean, the conversation around performance has been around for a long time. But to change the charter would take many years. The charter commission would have to convene, they would have to make a suggestion, they would put it on the ballot for the voters to vote to make that change. It would take some doing and it would take years. We wouldn't get— MR. et MR. FARAHL At least we said it. CHR. PAVAO: But, in the meantime, I agree with Deputy Corporation Counsel that if we include the language of performance, anywhere in our decision, it opens the door to litigation. It could very well hold off the entire salary structure, if somebody files a complaint or files a lawsuit in saying that we're going above and beyond the legal boundaries or dictates of the Charter. But I agree with you, unfortunately, the way the Hawaii state government is set up—or the state and counties and state laws, the charter—collective bargaining contracts there is, currently, no place for performance-based salary increases or raises. There is an elaborate performance appraisal system, but it's not connected to salaries. Just the reality of the current situation. Do I agree with that -100 percent— MR. ercent MR. FARAHL I understand. Page 12 Salary Commission September 7, 2023 CHR. PAVAO: (inaudible) not necessarily but that's where the current structure is. MR. FARAHL But I'm not going to give up either. CHR. PAVAO: So, anyhow but looking at our options today, I mean, I think that's something that the Commission can consider. We could vote, hypothetically, on the 18 percent. It would not, by any stretch, be a done deal. It would begin the process. As Director Patel just instructed us—it would go to the public for public input. We would have a public hearing. We'd get input from others including from the fire commission. We could amend, at any point—that wouldn't be etched in stone, but it would begin the process. So, something to consider. MS. KAWA`AUHAU: Commissioner Kawa`auhau. I'd like to propose, since the difference between the 18 percent and the purchasing power of the dollar is just about 5,000I wouldn't feel comfortable, at least, not giving them a salary or proposing a salary that would be equal to the one that they were hired with back in when they were hired. So, if there's a 79 cent/dollar nowI, kind of, want to adjust for that. And it's only 5,000 more than the 18 percent. And that's what I'm proposing. CHR. PAVAO: The 5,000 you're talking about is specific to one salary to the mayor's salary maybe? MS. KAWA`AUHAU: Well, when I did the mathI'm sorry—Commissioner Kawa`auhau. When I did the math for the mayor's salary, the difference would be—his salary would be 196,724.22. And when you look at what the difference is with the 18 percent, the difference—it only comes out to 5,000 more in the salary that I'm proposing. So, it's for that particular one. But if you do the math on all of them, it's probably going to be about the same. MS. NAMAHOE: Just for clarity, Commissioner Namahoe. What you're saying is—and I'm just going to use summary language—instead of 196, we instead look at two thousand one. MS. KAWA`AUHAU: Commissioner Kawa`auhau. The 196 is my number. So I think the 18 percent was 191,846.76. So, my number is 196,724.22—and that's just making sure that the dollar is the dollar today the same dollar that they were hired with when they got their first paycheck. CHR. PAVAO: Chair Pavao. Again, the collective bargaining units when they negotiated the 18 percent, cost of living is a big part of that negotiations. So I don't know if we're being redundant in doing cost of living twice actually—in my perspective. I would think a big part of the evidence that the unions bring to the bargaining table is cost of living. Page 13 Salary Commission September 7, 2023 MS. KAWA`AUHAU: Commissioner Kawa`auhau. So, the numbers underneath, right, `cause the bargaining units don't do it for the administrators. So, you're saying the numbers underneath take cost of living into effect? CHR. PAVAO: Yeah. MS. KAWA`AUHAU: But these didn't so yeah. It would just be like ifso, if we're comparing this number to the people, their subordinates, then we can see an actual true difference, right, `cause theirs is already considered within their number? Is that what you're saying, `cause the bargaining units consider this purchasing power in their number. So, that means, that their ultimate CHR. PAVAO: It's a big chunk of the justification for the 18 percent raise over the negotiated contracts, includes cost of living. MS. KAWA`AUHAU: Okay. So then that way when we compare, if we use our cost of living number that we got, which we canI mean, you can look up different economic studies to see and take an average of the cost of living arguments that they have. But I think 1.21 or 79 cents is actually, kind of, conservative. So, I was okay with it. But, if we do that and we adjust our number, then we actually have a clear, distinction between the two positions because their position already took that into consideration. So, we're taking into consideration, to me, the resulting numbers we can actually see whether or not—or what the difference is between the two. MS. NAMAHOE: Sorry, just I want to make sure we watch our assumptive language because we don't know what even in those negotiations, what they had to give up. They may have had to have given up some of their COLA. MR. FARAHL Could I make another suggestion? CHR. PAVAO: Yes. MR. FARAHL Maybe this body could create a separate committee to include Cody and Danny—and come up with a proposal based on all of the calculations that we're talking about and bring it to this body. And if it's approved, then that would be the basis for the hearing and the process could be a little bit faster. MS. FRENZ: So, this is Cody. I think that's a great idea, however, we would not have the ability and authority to do that. I think to streamline the process, Vice -Chair, that's an excellent idea. But we can do that here, collectively, if you guys know how you want to proceed, right. When we talked about creating a Permitted Interactive Group, this Commission, as a whole, kind of tabled that and decided it was not ready to do that nor did they think they needed you needed to do that at this time. If that has changed, we can do that. But that will actually cause additional Page 14 Salary Commission September 7, 2023 unnecessary delay if you guys, as a body, maybe here today think that you know we have one perspective, we have 18 percent. We have—we're pretty close you appear to be pretty close in relation to what you're looking at. Although I haven't heard anyone talk about the kind of continuity of potential increases tracking BU13, yet. I don't know if that's something you're going to be considering. But if you know where you're at, we could have that conversation today. You could even make a motion for such and, thereafter, Acting Director Patel and I with Chair Pavao—would actually do exactly what you're suggesting, Vice -Chair Farahiis drafting up what that would look like and you would consider at the next hearing. So, that would really require you guys to know where you're at today. So, that can all be done. We can do that today, if we know that everyone is either at the price of a dollar perspective, the 18 percent perspective, a different number, right. We haven't heard from everyone here today and maybe we should make sure that everybody's had a chance to chime in and talk about what their thoughts are. But that can all be today, actually, and I can draft something up with Acting Director Patel and Chair Pavao—and present it to you next month. MR. NELSON: Yeah. This is Commissioner Nelson. I do think as what Chairman Pavao said, we need to get something out. Okay. And then, basically, `cause there's a whole process of collecting more information, the public can weigh in the people can weigh in. Then, we get all that data, then we can decide whether we need to break out and get a separate group. I think that would be the most expeditious way to, kind of, move forward but that's my suggestion. CHR. PAVAO: Yeah, I thinkagain, Chair Pavao. I think, ideally, the best case scenario would be for us to vote on something today, at least start the process. As Deputy Corporation Counsel—we can meet and put something together. If we take the 18 percent and include cost of living, we can have such a motion. You would direct us to put that together in numbers. We'd come back to the next meeting and look at those numbers, and then we can make a decision about that, and begin the process of the hearings and public input. Maybe we should go down the row and see what peoples'—let's start—your opinion and input? MR. DUDOIT: Commissioner Dudoit. I like the 18 percent and the increase the 1 percent or 2 percent of the dollar increase. How we're going to do that, I don't know—where you talked about increments. Yeah, I'm all for that. MR. RIORDAN: I am, too. I'mI was with the 18 percent. I was fine with that. But I hear what you're saying as far as the cost of the dollar. And then, I think, I was proposing that maybe we would get that settled and then maybe next year start in on working on how to go forward with that, basing it on Business Unit 13 or whatever—but, not to get too much on the plate at once. MS. FRENZ: Let me just address that. This is Cody—Deputy Corporation Counsel Cody Frenz. So, the process that Acting Director Patel laid out at, kind of, the outset of this meeting and what we are doing now. That is exactly what you would have to do, if you wanted to come back every Page 15 Salary Commission September 7, 2023 single year as opposed to, I think somebodyI apologize, I recall which Commissioner brought up the idea—of using the BU13, which is the comparable rate of whatever BU13 raises are implemented, going forward, from whatever this Commission were to take action that's a similar or a likewise raise were to be implemented for each of the relevant positions. Therefore, you need not come back five months out of every year, six months out of every year to do a 3 percent, a three -and -a -half percent—every single time. So, you could do, I believe unless Acting Director Patel disagrees with me—take a position that the—and part of your proposed findings and conclusions of law would be that whatever BU13 bargaining because it maybe that they get nothing. If they are negotiated with the BU13 and they don't get anything for 2024, then likewise the directors that are relevant on our goldenrod sheet would get nothing. Right. So, one idea would be—'cause I just want to make sure everyone appreciates how much work it would be to come back every year, right. It would be, I think, minimum five to six months. If you think of where we are now, how we started, and where we need to get with publication, public hearings, et cetera—we're going to be seeing each other six months out of every year for the next five years. And this is more than fine with me, and that's what I'm here for. But I want you guys to understand that there is more seamless option that doesn't require that. And if you are using BU13 as the comparable rate to get to the 18 percent recommended conversation plus the dollar, right—then it would track that you could also use that as a template going forward to correspond to very appointed official on this goldenrod sheet—as an idea. CHR. PAVAO: Just to extend on what Deputy Corporation is saying is that Bargaining Unit 13's current collective bargaining contract, a four-year contract, ends June 30, 2025. So, the last raise in their contract is July 1" 2024, for 3.59 percent. So, we could make a decision whether it's 18 percent and cost of living today—and then, July 1st, 2024, they would get 3.59 and that would be good to the end of that fiscal year, which is June 30, `25. At least we wouldn't come back every year. It would be something different. I don't know if that's been done in the past with the salary commission's multi-year, multi-tier— MS. FRENZ: Unfortunately, that's part of the problem and why there was there had been no raises since 2018. CHR. PAVAO: That's right. MS. FRENZ: But that was not done back done. I don't know and, Director Patel, if you know, if prior salary commissions have done that, but that's why it has been five years with no raises. CHR. PAVAO: Yeah, my—remember history is that the salary commission has always played catch-up. I remember when Mayor Kim was in office and there was a salary raise. There was a lot of public outcry because the salary increases were, like, 30 percent because they hadn't had a raise in a long time. Page 16 Salary Commission September 7, 2023 So, fortunately, we're not that far behind. But if we can do a multi-year, at least, we won't have to have—go through this process every year. MS. FRENZ: True. This is Cody, again. And I believe—and I don't know if you want to hear from him but my police commissioner is present via ZOOM and one of the communications that they've provided to you, specifically, that is Communication 23-11.09, actually sets forth a recommendation on future potential increases (SEE ATT. D, COMM. NO. 23-11.09). And it's a little different but, again, police is in a different bargaining unit then BU13. So, there was a recommendation there, I just want to put your attention to that. He is presently on ZOOM, if anyone had questions. And I see Acting Director Patel's light on, so I'll defer to him. MR. PATEL: Yeah. So, just to clarify, again, we're—we keep referencing BU13, but as far as police and fire, we're talking about BU11 and 12. Also, past salary commissions—distant past have had schedules in place where after one-year it's this amount, after two -years it's this amount. Obviously, at some point, there's always a change in administration. That was done away with to where the salary commission would set it each time. I think different salary commissions had different ideas about the best way to proceed, depending on what was relevant and important to them at that point in time. So, for this Commission and to clarify further on what DCC Frenz said—if you did set out a plan where—okay, we're having x -percentage as, sort of, like, a catch-up. And then, next year we're going to do x -more percentage you could do that. Also, now that the Commission is sitting as a Commission, your rules do provide that you meet at least annually, so at least one time. So, it wouldn't be a "said it" and "forget it" regardless of what comes out of this Commission here. Yeah. MS. NAMAHOE: Commissioner Namahoe. I'd like to finish the items that we were all—we had just started, which is to allow us to finish our thoughts and make sure we're all working under of the same expectations or goals. MS. KAWA`AUHAU: Okay, so Commissioner Kawa`auhau. I like the language that was given where it's the 18 percent to match the raises that were in the bargaining unit. And then, the additional for the cost of living. I think that's really good language and it's something that's concrete and qualitive that you can point to—and we're presenting this information, so if there's nothing ambiguous about it. And I'd also like to write in the to match the raises that are going to be given to their subordinates. I don't have a problem with that I like that, too. Page 17 Salary Commission September 7, 2023 MR. FARAHL I'm not happy, but I'll go with the majority. I was hoping that we come up with a system that would be fair, that would be equitable, and have some benefits for the taxpayers. But, if we're doing the flat 18 percent, then maybe I could insist on adjusting that into a cumulative. `Cause if you look at it 18 flat versus 18 divided over five years, there isI know the definite advantage to the employees and I hope you do that. Other than that, I give up and accept the facts. MS. FRENZ: Well, this is Cody. Vice -Chair Farahi, maybe you could articulate what your recommendation would be, so that everybody knows exactly what that would be. And because maybe they will appreciate that and want to follow that as well. MR. FARAHL Well, I think I calculated that and send you an email and relate it to that one. For instance, if you're giving 18 percent, right—let's say we're talking 18 percent. Correct? This 18 percent you could divide into five pieces. CHR. PAVAO: Basically, that's how it was awarded to departments MR. FARAHL And I divided it in two/three and-a-halfthree/2 and -a -half's into 4 percent to make 18. So, whatever the base salary was, you apply the three -and -a -half. It gives you a new number. Then you apply the other three -and -a -half next year, it gives you another number. Then you apply the three -and -a -half the four and the four and four. That actually CHR. PAVAO: Can I get some clarification. So, you're talking about then, retroactive payments in that staggered system? MR. FARAHL No, to set up CHR. PAVAO: Are you going to just—effective now, we would vote on three -and -a -half percent. And then next year, you would MR. FARAHL To set up the salaries structure. CHR. PAVAO: How would we get to the 18 percent and would it take time to get to the 18 percent? MR. FARAHL Well, if you18 percent—you look at this number the yellow tab. And try to divide the 18 percent into five different increments. Three -and -a -half, three -and -a -half, three - and -a -half into (inaudible). CHR. PAVAO: Well, I know what you're talking about but the timeframe. How would you pay that out over a year, or two years, three years? It's going to be incremental increases? MR. FARAHL Yeah. Page 18 Salary Commission September 7, 2023 MS. FRENZ: So, if everyone could take a look in their green folder for Vice -Chair Farahi's communication, so we could all be on the same page with him, `cause he actually lays out those exact numbers here and the rationale that he's saying. So, everyone, to point your attention—green folder, Communication number 23-13.01 (SEE ATT. E, COMM. NO. 23-13.01). And I believe Vice -Chair Farahi is referring to—we'll call it the second, full paragraph on that email that starts with, "Also the same employee..."—and that's referring to exactly what he's saying. CHR. PAVAO: In my mind, again, the only way that would work is that if you were doing retroactive payments. Because, otherwise, you'll be—if we're doing increases the way the collective bargaining units start them, like 3 or 4 percent a yearso, to get that 18 percent is going to take four years for us to get to the 18 percent? In the meantime, we're not even getting caught up to the fact that they're already behind. MR. PATEL: Sorry, Chair Pavao, if I can. And correct me if I'm wrong, Commissioner Farahi. I think he's talking about figuring out the compounded interest rate and then setting that currently. Not necessarily paying that out over x -years. Is that what you're— MR. FARAHL I'm suggesting MR. PATEL: compounded interest since 2018? MR. FARAHL that you take this number, if you hit 18 percent on the mayor's salary, it gives you a number. Correct? And if that's the number that is recommended for the arrears, and then you could do something for next year or reassess. I'm suggesting is to arrive at the number. You take this one and hit three -and -a -half to it. Whatever number it gives you, you hit another three -and -a -half. It's like cumulative 18 percent. It gives them a couple of thousand dollars more and that would then become the blue number or the green number or the net number. I couldn't calculate it, `cause I couldn't download what Danny sent me. And it'sI think in the email I calculated that number and see where it would reach. CHR. PAVAO: It ends at being more than that. MR. FARAHL I think it would be fair `cause if you look at the facts, you're saying the unions got 18 percent of the average, right? CHR. PAVAO: Yeah. But I think what you're saying is true because they've got MR. FARAHL But they didn't get it all at once. Page 19 Salary Commission September 7, 2023 CHR. PAVAO: No. So, if somebody had $100,000.00 back in 19—in 2018 and they got 5 percent, they got that raise. The following July 1st, they're going to have 5 percent on that new base salary. MR. FARAHL Correct. That's what I'm saying. CHR. PAVAO: Yeah. MR. FARAHL That's what I'm saying. CHR. PAVAO: That would be fairer, actually MR. FARAHL I'm saying that would make it a little fair CHR. PAVAO: It will take a little bit more math, but it would be fairer. I thought you were talking about trying to do retroactive payments, which the charter doesn't give us the power to do retroactive salary increases. But that would be fairer, actually, when you think about it. `Cause that's how the collective bargaining units got paid that's how people like me in excluded management positions got paid that the increases were based on our current base salary. MR. FARAHL Essentially, my email, Mr. Chairman, if you look at it in an equitable fashion, it really is sad to see what they were given and what they're paid today. It's actually 24 percent less in buying power and what was set. So, in this case, you're just making a small incremental adjustment and you're not willing to adjust all of the other stuff and the parity stuff—but at least do one thing. I know the 18 percent is simple. It's right in front of you. We had to come up with another number and come up with some parity adjustment for individual positions. And also there's—I've been through this. They're the same here. I was surprised when I went to renew my driver's license that the Motor Vehicle Division, in this County, (inaudible). So, the revenue director in here has the motor vehicles but the revenue director in Maui—doesn't have to get one. The public works director has the buildings here but normally even on Mars, the two are never combined for a whole bunch of reasons. So, the public works director has to be given a parity adjustment because he or she has a department that has all of these components the number—but I'm not getting into that one `cause we're going for the simple cost of living increase. MS. KAWA`AUHAU: Commissioner Kawa`auhau. I just wanted to clarify. So, the first 18 percent increase would bring, for example, the mayor's salary up to 198,846.76. So, the proposal or what you're saying is on top of that, each time you raise it by 3 percent, like, the raise is off of Page 20 Salary Commission September 7, 2023 CHR. PAVAO: No. What he's talking about is to go to back and look at the collective bargaining—for instance, if you use Bargaining Unit 13 from 2018 to 2023, you would look at how that 18 was awarded. And I was a member of Bargaining Unit 13 MS. KAWA`AUHAU: Yeah, but CHR. PAVAO: so, for instance, July 1st, 2019 MS. KAWA`AUHAU: Yeah. CHR. PAVAO: you got 3 percent. So you would add 3 percent to the mayor's salary MS. KAWA`AUHAU: As is now -162? CHR. PAVAO: to the current salary because that's the same salary in 2018, it doesn't change. And then, you would look—and then, that becomes the new base salary. Then you look at July 1, 2020, the union got 4 percent, then you add 4 percent to the new base salary. So, it's the same 18 percent but it ends up more in the salary because you're basing the increases on the new base salary. MS. KAWA`AUHAU: So, we go backwards and then we just work it—what it would be if he had gotten raises, and then that's the new base that we start with. That's the new proposal that we start with? CHR. PAVAO: And then, we would look at— MS. t MS. KAWA`AUHAU: Oh, I see. MR. NELSON: I think it's like compounding. MS. KAWA`AUHAU: Yeah, and the cost of living. MR. NELSON: It's like compounded interest. MS. KAWA`AUHAU: Yeah. MR. NELSON: So, that's the way. MS. KAWA`AUHAU: I see. CHR. PAVAO: Yes, because that's the way that the collective bargaining unit employees were paid. They get their salary every July 1st based on their current base salary. Page 21 Salary Commission September 7, 2023 MS. KAWA`AUHAU: Commissioner Kawa`auhau. And we don't know what that number is right now, though, like what it would be—what we will be starting from. CHR. PAVAO: Wait—no, that's the base salary MS. KAWA`AUHAU: No—like, we don't—so we have to do the math to figure out where we would be today. So, I know the 191 and I know the 196—so I would have to know the math to know what that number is. CHR. PAVAO: (Inaudible.) MS. KAWA`AUHAU: Okay. So, if it's at least 196 or greater, then I'm on board. And if it's not greater than 196 or at least equal to it I wouldn't be. MS. FRENZ: So, this is DCC Cody. So, I think, if I understand correctly, Vice -Chair Farahi and correct me if I'm wrong—we could, again, using the mayor's salary as an example, look at the current rate of 2000I'm sorry, the 2018 set rate of 162,582. And then go to the 2018 BU increase—given that, whatever that 2018 three -and -a -half percent—whatever that number was, and see what that would be. Then, we would add the next rate for 2019 to 2020, 2021, 2022—as opposed to an even 18 percent—and that would give us the column MR. FARAHL Eighteen percent cumulative. MS. FRENZ: cumulative. Correct. And then, we could also compare that to the dollar, right. MS. NAMAHOE: Okay, this is Commissioner Namahoe. So, this is where I put my healthcare underwriting hat on. And I see this in F-1, F-2, F-3—we are hugging the 18 percent line if we think backwards what hugging the 2018 line was back in 2018we didn't take into account the unknowns -2018 we lost our largest tax bases in Kapoho in that same year with the lava flow. We didn't know that inflation was going to hit us at 8 percent. So, since we're all hugging that I'm going to shoot it up. And so, I look at this and I see 18 percent. Thirty percent of that 18 percent is 6 percent—I'm going to say first year we go at 24 percent and F-2 we do 5 percent on top of that. F-3 we do 5 percent on top of that. And let the rest of them argue us down. MR. NELSON: Okay, this is Commissioner Nelson. So, I would—my suggestion, when I thought we came up with the 18 percent, I thought the 18 percent was (inaudible) with BU13. And so, that's why—I thought that was a fair, kind of, assessment for, kind of, adjusting everybody `cause that was a comparable thing. Now, when I look at the actual data it's actually 16 percent. Okay. So, I think if you take the 16 percent—that would be a straight up parity, more than the 18 percent for most people. I think the fire and the police chief are a little bit different category. But I think if you take the 18 percent, Page 22 Salary Commission September 7, 2023 which is 16 percent parity plus the 2 percent to get the 18 percent—would include the 5,000 that you're thinking, kind of, as additional thing. So, I still think that the 18 percent is a good number for most people to get the parity. Now, the police and the fire they are in a different bargaining unit, I think—and they're in a little bit different higher category. So, I think there's an argument to make to have to give the police and the fire chief and deputy a little bit more. Okay. `Cause they've got another they've got a 4 percent increase coming in. So, I wouldI wasI think the 18 percent is fair, would include that cost of living for what we got in there for most staff. And then, the police and fire should get 21 percent. And then, what you were saying for next year -3.59 percent, plug that in, too, I guess. So, that would be that I think would be an equitable adjustment. CHR. PAVAO: It's Chair Pavao. One of the things that we haven't considered, too, when you think about parity is that—and you look at Bargaining Unit 13 they have beyond the across- the-board salary increases the 18 percent you're talking about. They also have step movements based on years of service, whether you're working two years or three—two or three year step movements every two or three years. People that are more seniors, every three years they get a step movement. The step movement, basically, amounts to about a 4 percent raise on top of the across-the-board raise. MS. NAMAHOE: Commissioner Namahoe. I have one more thing to say, too, since I brought up 2018 and the lava flow. One of the hardest working departments was the head of public works, who was the one getting as close as they needed to, during the lava flows, during the floods, during the hurricanes. I mean, I recognizeI just want to put it out there. We do look at BU11, 12, and the professionals, but as we are also tasked with looking at all of them, there's a lot of corrections that could be made across-the-board, especially those who are in charge of making sure that they can support Hawaiian Electric getting there to pick up the downed powerlines. There's a lot of other departments that put their lives on the line. That's all. CHR. PAVAO: So, I don't know if we have a consensus, at this point, but MS. FRENZ: Sorry, one more—we have Commissioner Nakama on ZOOM. We should turn to Commissioner Nakama— CHR. PAVAO: Oh, yes. MS. FRENZ: would you like to weigh-in, ma'am? CHR. PAVAO: Commissioner Nakama? Are you muted, Commissioner Nakama? We can't hear you. MS. FRENZ: Commissioner Nakama, we still can't hear you, ma'am. Hang on. Page 23 Salary Commission September 7, 2023 MR. FARAHL This is the modern technology. CHR. PAVAO: They just recently did an upgrade. MS. FRENZ: Could Chair Robinson, could you do a mic. check for me, sir? No, we can't okay, thank you. At least we know it's not just Commissioner Nakama. One moment, everyone—if could pause. CHR. PAVAO: We'll take a five-minute recess, so that we can see if we can correct our electronics and give the Commissioners a break. We are recessed and we'll be back in five minutes. RECESS: The Chair called for a recess at 11:01 a.m. RECONVENE: The meeting reconvened at 11:08 a.m. CHR. PAVAO: Okay. Chair Pavao, we'll go ahead and reconvene after our five-minute recess. Commissioner Nakama, are you there? MS. NAKAMA: Yes, I am. Thank you. CHR. PAVAO: Okay. Can we hear your comments? MS. NAKAMA: The only comment I have right now, I'm taking everything in and I don't have a conclusion on what my thoughts are at the moment. But I'm gathering information, writing and calculatingso, I'm needing to hear more from the other Commissioners before I draw my own opinion on the matter at -hand right now. CHR. PAVAO: Okay. Thank you, Commissioner. Chair Pavao, again. So, listening to the input of all the Commissioners, I'm beginning to think that Commissioner Namahoe's suggestion, personally, my—is 20 percent is actually a good idea because it would incorporate, I think, the cost of living, it would incorporate the parity issues around step movements, and it would—in my mind also the cumulative raises over the period of time would better address in 20 percent than it would be in 18my opinion. Any input? MS. FRENZ: This is Cody Frenz. Maybe we could have Commissioner Namahoe re -articulate exactly what her thoughts are and her proposal is. MS. NAMAHOE: Aloha, everyone. Commissioner Namahoe. So, from an underwriting perspective, the typical goal of setting any monthly expenseI'm used to the word "premium" but in our math it would be for the budget—any monthly expense. We would be working on the previous years' information. The closest year to the coming year is your most accurate template to tell you what the pending cost will be. It starts to warp, it starts to distort when the goal is to do information further out. Page 24 Salary Commission September 7, 2023 So, trying to come up with expenses of a two-year budget or a three-year budget—even as we step it forward this in F-1. The following plus 2 percent in F-2. The following would be plus 7 percent in F-3. And the reason for that ski jump where it wouldn't be linear is, we don't know what the pend—what the coming costs are going to be. So, with that thinking in mind, as I've listened to the colleagues because I'm on this end, so I've got to listen to the majority of you—with the exception of Commissioner Nelson. We the fact that we're hugging close to the 18 percent, as much as that seems enormous, it's really a parity discussion we're having because we're looking from 2018—it's 2023. F-1 could be 2024; F-2 is 2025, right, in going forward. So, we're already in 2023. My concern about the majority of our math being and our concerns being parity focused isif there's anything we know about this island, we get hit with unknowns all the time. And so, going forward to follow Mr. Patel's reminders and cautions of the processes that will face us—in negotiations you come to the table high because the public's going to come at us and make us knock it down. So, I would rather kick it all the way up because then that way, we will be amenable—we need to be looking at, right now, some of our conversations as the absolute floor that we cannot go below. But I would recommend—and I recommend this, actually, with caution. It doesn't sound like we don't understand what the value of the dollar. It's that we need to understand the value of the upcoming negotiations we're going to have to take. Nobody's going to come and sit here in front of us and say, "You're offering too low. You should pay them more." Maybe a commissiona commissioner or two might say that on behalf of their the chiefs that they represent and they work with closest, but we're not going to get that from the public. So, as we're talking 18 percent, I'm actually thinking what is 30 percent of 18? That's 6—so 6 on top of 18 is 24. I'd say we start at 24 that'll be F-1. And then, going forward from there, when I think about inflationary trends, it's not—I'm trying to think of the opposite word of "cautious"anyhow, 5 percent of each year on top of that is not—those are not for the (inaudible) numbers. So, thank you. MS. KAWA`AUHAU: Commissioner Kawa`auhau. So, the 24 percent would be added to the base salaryso, 162,58224 percent increase from there? MS. NAMAHOE: Right. MS. KAWA`AUHAU: Okay. So, that's higher than my 197—so I'm on board with that. MS. NAMAHOE: Yes, ma'am. And remember, nobody's going to agree with this hands down, but we need to, at least, set the ceiling because we are, right now, everybody's just talking floor. Page 25 Salary Commission September 7, 2023 CHR. PAVAO: So, are you making a motion, Commissioner Namahoe? MS. NAMAHOE: I guess I'mCommissioner Namahoe, making a motion, please, that we set preliminary numbers of discussion—"A" for base language and "B" or "Part I, base language" and, two, how we're going to trend that over if we're looking at one fiscal year thereafter or two fiscal years thereafter. I think that that should be up for discussion going forward. So, that is my motion on the table. CHR. PAVAO: We had some discussion about this earlier but, personally, I think we should at least follow the term of the current collective bargaining contracts, which end June 30, `25. MS. NAMAHOE: So, then, is that then within the motion we're looking at F-1 being 2023, F-2 being 2024, F-3 being 2025—or only two years for clarity, for the motion. CHR. PAVAO: I mean, we could go three years. I mean, we don't have—we're not limited. We don't have to follow the collective bargaining contract. That's the only—it's just those numbers are known, at this point, because they already negotiated their contracts. But we could do 5 percent for three years. It's a great idea. I think it's better than the current situation where the Salary Commission is playing catchup five years later. MS. NAMAHOE: So, then, for clarity for this motion, I am making a motion that we discuss 24 percent, which is 30 percent over the 18 percent for F-1. And then, for F-2, 5 percent. And F-3, for 5 percent over that. That's my motion. Is there a second? CHR. PAVAO: Is there a second? Second? Anybody second? MR. NELSON: Yeah. I don't agree with that. MS. FRENZ: Well, we can't get to discuwe don't have a second, yet. CHR. NELSON: We can't. Yeah, right. MS. FRENZ: Can you re -articulate exactly what the motion was? Sorry, Commissioner Namahoe. MS. NAMAHOE: Commissioner Namahoe. The motion I'm putting forward is for the math going forward, that we set 24 percent at the base of discussion. For F-1 for fiscal the first fiscal year that's the current fiscal year. For F-2 starting July 2024 that'll be 5 percent over that. And for fiscal year starting 2025, it'll be 5 percent over that. SPEAKER: (Inaudible.) MS. NAMAHOE: No, it's just 2023 to 24; 24 to 25; 25 to 26. Page 26 Salary Commission September 7, 2023 CHR. PAVAO: Three fiscal years. MS. NAMAHOE: Three fiscal years. So, F-1, F-2, F-3—or FY -1, FY -2, FY-3—fiscal year first, second, third. So, 24—FY-1. Five percent over that—FY-2. Five percent over that—FY-3. CHR. PAVAO: So, we need a second in order to have discussion. MR. DUDOIT: Commissioner Dudoit, I second that motion. CHR. PAVAO: Okay. It's been seconded. Discussion? MR. NELSON: So, this is Nelson. So, I think that amount is a little too high for both tiers, at least, for me, just because—like, we've got—we do have the collective bargaining units. I mean, it's not that there is a question of parity. And I think there's a question that when we looked at this, we kind of compared it to the other positions in the other counties and different things like that. And I thought—when I looked at it for the 18 percent—when you looked at it, you compared it with the other counties, they're rather—actually seem to be equity. Okay. I mean, it put in—we were a little bit lower than Honolulu, okay. We were a little higher than MauiI think it was something you brought up—we're higher than the other counties. So, there's other challenges in there. And I think it put it in right there. I don't know what the 24 percent would be. I mean, in order to go with that, I would need to look at that and see how that compared with the other counties. I don't know what that is. It seems like a bigger jump, to me, than what we should that what we should approve. I mean, we do have to take the taxpayers into account. I know you say everybody's going to come in and they're going to knock us down but the people are going to come in and be looking for it—are going to be the self-interested people that want to get the pay. The unions are going to be, like, make it as high as you can. The people that are going to get paid, they're going to make it as high as you can. I don't know who's going to come in and knock it down, right. I mean, I thinkso, I think we're the guys that have to be conservative. At least look at what is fair to the taxpayers and it's fair to the employees. I mean, we want to make sure we can recruit and retain good people, so you need to have a good salary. But also, at the same time, all the salaries come from the taxpayers. So, I do think we need to keep both interests in mind. MS. FRENZ: Just—this is Cody Frenz, Deputy Corporation Counsel. I wanted to share one point based on something someone had said earlier—and I apologize, I don't recall which Commissioner it was. Page 27 Salary Commission September 7, 2023 I think one of the important differences for this Commission's consideration is, even when you look at the BU13 as a comparable rate for this conversation, those employees are also entitled to overtime pay. And the directors that you are looking at and the EM's that would be affected by the raises that you guys may or may not do here—are not. So, even if the BU13 parties get the step increases periodically based on what we have discussed here this morning, they're also still entitled to overtime pay. And that's one of the biggest factors, I think, for this Commission to consider. And I think it's also articulated in Commissioner Rick Robinson's letter on behalf of Police Commission. Part of the biggest discrepancy is fire, police, all BU13 employees they all get overtime pay. The directors do not. And I also indicate prosecutors office and corporation counsel—even though they are licensed attorneys, there's also no overtime pay there as well. So, just also something to keep in mind, the people that you are—we're using that to gauge will still get overtime pay whereas the people that you have control over will not. MS. KAWA`AUHAU: Commissioner Kawa`auhau. And just to give clarity or to help with the mayor's salary—if we went to the 24 percent increase, it would come to 201,601.68. And that's 4,877.46 more than what's in the column. And also, with the 16 percent increase, that comes out to 195,098.4 which is $1,000.00 less than if you included the amount that the purchase—of the purchasing power of the dollar. So, I don't like the 16 percent, `cause it's less than the—it doesn't take into consideration the $1.21 and, in case anybody wants to know, the 24 percent is 4,877.46 above what we have in the second column. CHR. PAVAO: It's—Chair Pavao. I think the 24 percent might be a little bit high and I don't know if we should set a rate with the mindset that we can negotiate down when we deal with the public input. I think we should try to get something that we think is fair and justifiable. I think 20 percent is a good number because it would allow for the compounding of the time when they didn't get raises. And then, also, taking into account the cost of living adjustment. I think that's something that we could justify. Anyhow, any other comments? MS. NAMAHOE: Yeah, Commissioner Namahoe. So, I'm just thinking about—we'll have 24 different—we'll have people that will come in that look at 24 percent. And they will they'll come after us for it. We are not going to have anybody coming after us at 18 percent thinking that we are underpaying them because percentages like that sit in arbitrary they sit in the air. People look at 18 percent against 18 percent of anything that they see. And they'll see it against their own experience. Page 28 Salary Commission September 7, 2023 And I appreciate that but, again, to the process that we will be facing, the numbers we'll come forward with—we are going to see this room fill up. They're going to weigh in and then we're going to have to come back. And, if we're going to come back, I don't see us moving up to 29 percent, 34 percent, 76 percent—we're not going to give them increases. We have to look at this from the negotiations perspective because we will be negotiating with the public, ultimately. In order to do our fiduciary responsibility of setting these salaries, we have to shoot high because if we were to go 18 or even at 20—and take it, and then still come back at 18, we're going to get hammered that we didn't listen. CHR. PAVAO: Any more comments, otherwise, we'll MR. RIORDAN: Commissioner Riordan here. I think if anybody that's listening or reads our minutes, just heard what you're willing to take that you're saying 24 percent but you're willing to take 20. And I think that we shouldI'm with the 20 percent. And then, I think that we should tie the raises, going forward, to the business unit 13 for everybody, except for the police and the fire department—and tie theirs to business unit 11 and 12 that would be my recommendation. MR. NELSON: Nelson that works for me. I think that's a good recommendation. MS. NAMAHOE: Commissioner Namahoe. Just to say that—you see, if I didn't shove 24 percent, we wouldn't be looking at 20. So, thank you for proving my point. My motion still stands at 24 percent. If a small room of us can go up to 20, wait till what we do, after this room fills up. Wait. It's coming. So, make a ceiling. Don't argue from the floor. CHR. PAVAO: Okay. Let's try to get as much input before we vote on the issue. MR. FARAHL Can I make a suggestion? CHR. PAVAO: Yes. MR. FARAHL Let's divide this. Let's leave the F-2 and F-3 alone for the time being, for just a minute. Let's decide on what we adjust the salary on the arrears—meaning, from '04. Say okay, this is the percentage. And if you did that percentage, then decide what calculation you want to use for the percentage—whether it's a flat rate or accumulative rate. That gives you a number. A number "x." Based on that number "x" then for next fiscal year you give a percentage on top of it, that gives you "y"—and after that, you give another percentage. By doing that, you reduce the level of noise considerably—if you did that. Page 29 Salary Commission September 7, 2023 It's the first decision before this Commission. Don't say anything, Cody before this Commission is to decide on the lost arrears of the people the positions. Okay. Now, that would give you a number. Okay. If that's 24 percent, 20 percent, 18 percent—we need to settle this. Just don't over complicate. Once you settle that number and typically (inaudible) would tell you 18 floor, 24 floor, 20 compromise floor—whatever it is that you do that number, then you decide whether you want to do it cumulatively or flat. When you're done with that, it's very simple—decide F-1, the first fiscal year after your decision. Let's do the second fiscal year after the decision (inaudible). If we do that, I will be very happy. MS. KAWA`AUHAU: Commissioner Kawa`auhau. I would need the number, so I can't say whether or not I'm going to do it cumulative or flat. So, if I had the number—and I don't know because I don't know what the reasons were. But I think that's a good idea to check what that number is. But I have the 20 percent still leaves 1,625.82 under the dollar. And I'm sorry, but I think a dollar should be worth a dollar, so if we could at least get to the 1,000—and I feel bad saying that `cause Commissioner Namahoe just said don't bargain from the floor but, at least get the 1,625.82 in there, then I can be okay. I want the adjustment for the difference in the dollar between now and before. MS. NAMAHOE: Okay. So, Commissioner Namahoe. So, just to get just to acknowledge the floor and put it in percentages, would the floor, then, for the dollar to be equitable from 2018, 19, 20blah, blah, blah then, would that be a 22 percent floor? MS. KAWA`AUHAU: Commission Kawa`auhau. I believe it's around there. MS. NAMAHOE: So, I'd be willing to amend the motion to a 22 percent floor -22 percent floor for fiscal year 1 - MR. FARAHL For the arrears. MS. NAMAHOE: For the arrears, but I'd still like to leave in the language for fiscal years 2 and 3 because at least that's the information we have as far out as reasonable for discussion. And, again, this is just a motion for future discussion, we can always make another motion to correct it which I think is the natural course of events, anyway, as we dive deeper into the numbers and start to see what the elements pop up to be. So, my amendment to the motion is 22 percent for year 1, because then the dollar is the dollar. And then, F-2 and F-35 percent each. CHR. PAVAO: Thank you. Page 30 Salary Commission September 7, 2023 MR. FARAHL I can live with that, if we did one other thing. Simple. If you look at the email I sent you, it's not debatable that the cost of living has gone during that period at 22.44. It's not debate—it's fact. So, if you did that, you're saying the arrears are adjusted for the cost of living due to inflation, 22.44 percent. MS. NAMAHOE: Commissioner Namahoe. So, for—so the amendment for the motion is that the first year is 23 percent, right? Twenty two point forty-four percent? MR. FARAHL No. I want to do it 22.44 percent. MS. NAMAHOE: Twenty-two point four-four percent—that would be MR. FARAHL The arrears. MS. NAMAHOE: You guys are making 24 percent looking more and more reasonable. MR. FARAHL No—well, you're showing MS. NAMAHOE: How you doing? MR. FARAHL It's your face and your arms (inaudible). MS. NAMAHOE: I'm about to say the motion stands and we just vote on it. MR. FARAHL You're doing good. MS. NAMAHOE: Doing good? MR. FARAHL It's just MS. NAMAHOE: Twenty-two point MR. FARAHL compromise a little bit. MS. NAMAHOE: I'm happy to. So, the amendment to the motion for to be reasonable—is 22.44 percent for first year—for F- MR. FARAHL The motion would say, "The adjustment for the arrears based upon the inflation rate." MS. NAMAHOE: For FY -1, the first fiscal year Page 31 Salary Commission September 7, 2023 MR. FARAHL F-1 is 22.44 percent. MS. NAMAHOE: Is 22.44 percent. MR. FARAHL Okay. That gives you the number, then you decide about the others. MS. NAMAHOE: And then, for the following fiscal year -2, 5 percent; and then, fiscal year -3, 5 percent above that. That's the amendment to the motion. MS. KAWA`AUHAU: Commissioner Kawa`auhau, second. CHR. PAVAO: Okay. The motion has been made and amended— MR. FARAHL There is one thing CHR. PAVAO: Well, unless we have more discussion. MR. FARAHL The maker of the motion you need to think that there will be negotiations coming—and I have been in a different chair before. And so, the labor units will be coming and say, "We're talking about 5 percent—'cause these (inaudible) has got 5 percent, we're going to get 5 percent." See, taking that negotiations stuff into consideration. My hope is just you just do it for one year. One year ahead. MS. NAMAHOE: Suggest FY -1? MR. FARAHL Yeah. MS. NAMAHOE: Not even discuss FY -2 or 3? MR. FARAHL Well, `cause otherwise you're looking 10 percent just visualize the seven different unions in there. You're saying—you're doing two things. One, you're adjusting for the inflation the base salary at 22.44 percent. Correct? And then, the fiscal year that's coming that is not finished, you're going to give them 5 percent? CHR. PAVAO: Personally, I think we should do two or three years. Otherwise, we're going to have to come back and spend six months doing the exact same thing for that 5 percent increase again, next year—and another six months the following year. That's the problem with this body is, historically, they haven't done multi-year salary increases, so they keep falling behind and playing catch-up, right now, for five years. So, personally, I think a two or three-year agreement would be the best thing to do. Page 32 Salary Commission September 7, 2023 MS. NAMAHOE: Commissioner Namahoe. Thank you so much for the discussion. The motion has been made— CHR. PAVAO: Yeah, that's true. MS. NAMAHOE: seconded, amended, seconded. I think it'sI suggest we take a vote. Thank you. CHR. PAVAO: Okay. Yeah, the question has been called and we'll go ahead and vote. MR. FARAHL Can somebody, now, read the motion so we're clear about the motion? MS. FRENZ: This is Deputy Corporation Counsel Cody Frenz. As I understand Commissioner Namahoe's motion—and please correct me, if I mis-stated it. There's a recommendation—or the motion is for an increase of all individuals on our golden rod exhibit to have an increase of 22.44 percent to make up the arrears and bring them to current standards that you believe they should be at, as we sit here today. Going forward for the next fiscal year, there would be a 5 percent increase on top of their current pay—whatever that 22.44 percent would be. And next—the following fiscal year another 5 percent on top of whatever their next year, with the 5 percent base salary would be. Is that correct, Commissioner Namahoe? MS. NAMAHOE: That is correct. MR. FARAHL One thing just to that you're suggesting that the inflation adjustment—not an increase the inflation adjustment for the arrear is 22.44 percent. CHR. PAVAO: She's suggesting that that's the exact number of the increase. Using the same number of the inflation as an increase -22.44. MR. FARAHL (Inaudible) we're just not saying it's an increase, it's an adjustment—an inflation adjustment. MS. NAMAHOE: So, the motion language should be a 22.44 percent inflationary adjustment MR. FARAHL (Inaudible.) MS. NAMAHOE: No, no, no MR. FARAHL I'll second the motion. MS. NAMAHOE: Okay. And then, with understanding fiscal year -2 and fiscal year -3 having those increases at 5 percent Page 33 Salary Commission MR. FARAHL Those two adjustments— MS. NAMAHOE: those adjustments those inflationary adjustments. MR. FARAHL Right. CHR. PAVAO: He said cost of living. MS. NAMAHOE: For the cost of living. September 7, 2023 MR. NELSON: So, before we move forward, that I just want to—for the (inaudible) years—for the next fiscal years, 5 percent I mean, basically, right—now the unions have they have a lower percentage. All right. And so, basically, we're going—if we put those salaries in at 5 percent, we're going to screw up the union negotiations. `Cause the unions are all going to say, "Well, that's the floor, it's 5 percent. We want 7 percent, `cause the bosses all got 7 percent" okay? So, I think that's too much. I think next year should be the same as maybe what's in the bargaining units that three -and -a -half percent or something like that. And then, we need to leave the next years out. Like I said, that's myI suggest changing it to that, because I don't think you want to screw up the union negotiations. CHR. PAVAO: The thing with the unions (inaudible) Bargaining Unit 13having been a member that 3.59—again, we got to remember they're getting step movements on top of the 3.59. MS. NAMAHOE: And overtime. MS. FRENZ: So, maybe that's the better articulation, is to articulate why 5 percent would be appropriate as opposed to tracking directly the BU13. Is it to account for the lack of overtime opportunities for these director positions, et cetera. Maybe articulating why so that there is differentiation between the directors and the BU13, so that it does not affect. I agree and I appreciate the concern about potentially affecting BU13 negotiations going forward. So, how you articulate why it needs to be different is also relevant. CHR. PAVAO: And, I think, too, from my own personal experience having worked with some of the directors and deputy directors that most—many, if not most, work more than 40 hours a week and they don't get compensated anything beyond 40 hours. MR. PATEL: So, real quick just to follow-up on that, too, for the same reasons as Commissioner Nelson expressed and I think Chair Pavao also mentioned this. While going beyond the current contract period—so going into F-3—for the same reasons that might be a concern. So, if you go for this initial catch-up and then one more, then that wouldn't Page 34 Salary Commission September 7, 2023 put you beyond the existing contract period for the included counterparts. So, something to consider. Yeah. MS. NAMAHOE: So, then, for clarity this is Commissioner Namahoe. My understanding is we had information—although it's only up to 2025—it's not year 2025-26. CHR. PAVAO: Yes, that's correct. MS. NAMAHOE: Okay. CHR. PAVAO: The last negotiated pay raise is July 1st, `24. The contract ends June 30, `25, but there's no pay raise at that point. MS. NAMAHOE: There is no pay raise at that point. Then I want to thank you for that clarification because I wasn't working under that assumption. I was working that we had an F-3 that we could be comparable to. So, I would be happy to amend it to just current year and FY -2. MR. PATEL: Also, one more thing. For current year—maybe contemplate what the effective date would be—so when that would start being paid assuming it went through the entire process and was finally passed. So, effective date for F-1, effective date for the next— CHR. ext CHR. PAVAO: Can we legally go back to July 1st, 2023? MR. PATEL: I think you're forward-looking, right. So, if we're thinking about the timeline for the process, somewhere around late this year/early next year would be at best—going through the whole public hearing and all of that process. CHR. PAVAO: Maybe January 1, `24? MR. PATEL: So, the last pay raises that happened January of that following year 2018so, that could be. And then, the next pay raise for the included counterparts would be July 1, '24—so that just for your consideration. But you could pick any date you wanted as long as it's forward-looking. MR. RIORDAN: Commissioner Riordan here. And what's the pay raise going to be for business unit 13? MR. PATEL: That's going to be the 3.59 percent—July 1, 2024. Page 35 Salary Commission September 7, 2023 MS. NAMAHOE: So, the motion's still on the floor. And, again, this is not set in stone. This is setting the expectations of our discussion going forward. This doesn't preclude any of us including myself—from changing my mind at the next meeting going forward. But, Number one, I am very happy to hear that we're at least, all of us, considering that pay raises are due to the leadership MR. FARAHL The adjustments of the MS. NAMAHOE: I beg your pardon that the inflationary adjustment—I'm going to change that language. That at least that we understand that what I'm hearing is that inflationary adjustments are due. It's important for morale. And one more thing that I keep hearing and it might be obvious, but I want to say it anyway this is leadership. They don't have the opportunity they don't have the advantages of shop stewards, they're not in any of the bargaining units, they can't negotiate. Some of them yes, have to be elected in order to receive the wage, but there are some people that are on this list that have been doing their job in a stellar capacity whether they're in leadership or they were the deputy since 2018 until now. And why they come to work to continue to do what they do, I think of them and—with respect—as I want to pay the top dollar as possible. And I don't want to insult them with floor language when we could, instead, be at least resolving the inflationary disparities since 2018 until now -2023. I'd like toI know that it's tough but, again, I am confident that the public will come in and let us know. MS. KAWA`AUHAU: Commissioner Kawa`auhau. I'd like to call the question. CHR. PAVAO: Yeah, okay. Yeah, the question was called earlier but we, somehow, sidestepped that with all that—further dialogue. Let's just go ahead and vote— MR. FARAHL What is the resolution now? CHR. PAVAO: She's saying just two years—and one-year 22 MS. NAMAHOE: The motion stands for the inflationary adjustment to be 22.44 percent, for the first fiscal year effective January 2024. And for the second year, which is effective July 2024 through June 30'', 2025, to be 5 percent for that second year. MR. FARAHL So, we're saying is that your motion is to make an inflationary adjustment to the base salary of 2018, of 22.44 percent. CHR. PAVAO: Yes. Page 36 Salary Commission September 7, 2023 MR. FARAHL And also, to make an adjustment for the current fiscal year, in which we are in, a 5 percent? MS. NAMAHOE: No. CHR. PAVAO: No. MS. NAMAHOE: Opposite. I said that in opposite. So, again, the inflationary adjustment be effective for all of the—for the managerial—for the leadership staff as listed on the goldenrod sheet, flat across-the-board inflationary adjustment of 22.44 percent, effective January 1", 2024; with fiscal-2—fiscal year -2, effective July 1", 2024 through June 30'', 2025, to be 5 percent adjusted on top of the January original adjustment. That's the motion as it stands. CHR. PAVAO: Okay. The question has been called. Let's go ahead and take a vote. We'll start down here and signify by voting "yes" in favor of the motion or "no." MR. DUDOIT: Commissioner Dudoit—yes. MR. RIORDAN: Commissioner Riordan—yes. MS. KAWA`AUHAU: Commissioner Kawa`auhau yes. CHR. PAVAO: Chair Pavao yes. MR. FARAHL Commissioner Farahi—yes. MS. NAMAHOE: Commissioner Namahoe yes. MR. NELSON: I'm okay with—Commissioner Nelson, I'm okay with the 22 percent but I'm not okay with a 5 percent for the next year. So, I guess I'm a no. CHR. PAVAO: Okay. And Commissioner Nakama. MS. NAKAMA: Can you hear me? CHR. PAVAO: We can hear you now. Yes, thank you. MS. NAKAMA: (Inaudible) yes. CHR. PAVAO: Okay. Thank you. And the yes's have it. The motion is carried. Any other "Unfinished Business"I think we reviewed most— MR. ost MR. FARAHL Mr. Chairman, now that has (inaudible), is there any way that we could look at the language of the—look at the final language of the resolution, and I just—my Jersey mentality Page 37 Salary Commission September 7, 2023 is to make sure that it says exactly what was stated and, yet it is palatable, so it's not something that people could use against this Commission. MS. FRENZ: This is Deputy Corporation Counsel Cody Frenz. So, to clarify, the minutes will speak for themselves. And, if you want, Vice -Chair Farahi, you could submit language to our secretary who could disseminate it to Acting Director Patel and I to—go ahead. MR. PATEL: So, Acting Director Patel. So, yesso, with that motion now, it will be reduced into a written report with language. At the next meeting, you'd be able to read that and decide if, "Yes, this is exactly what we want"—or "Let's change this, that, or the other"—and then finalize that, if, at that point, you're ready. So, yes, Commissioner Farahi. MR. NELSON: So, this is Commissioner Nelson. Can I ask—can we have—can you guys come up with a spreadsheet that shows what the numbers would be, based on that motion, so that we could have that to look at, too, for each position. MR. PATEL: Yes, that's— MR. NELSON: We don't have that now. We don't really know what everybody (inaudible). MR. PATEL: Absolutely, that would have to be produced. CHR. PAVAO: Everybody wants to see the step apply to the salary schedule, so you can see what the salaries would look like. Yeah, we need to see that for sure. So, we probably would have more public input at the next meeting. MR. FARAHL Like the things that I am trying to do next—whereas the cost of living since the salary was set in 2018 has increased by 22.44 percent, the Commission that recommend its resolved, that the arrear adjustment be set at this number. CHR. PAVAO: Yes. MR. FARAHL I'm just trying to figure out the language. CHR. PAVAO: Figure the language (inaudible). MR. FARAHL And then, also, a resolution resolves that between that date, January -something and something, a cost of living adjustment of 5 percent be named to be followed by another 5 percent adjustment from July I" of this year through June the 30'h of the other year. CHR. PAVAO: The motion has been voted and passed, so when you look at it, you'll get the minutes you review it. We can come to the next meeting, and we can adjust the language. Page 38 Salary Commission September 7, 2023 MR. FARAHL Yeah. I just really want to thank Cody—maybe you can think of the language. We already know the spirit of what was passed. Correct? And, also, I think Danny should be nervous `cause when he negotiates with the unions for the percentages—and think back that that's awe need to create the language correctly. I think it's a fair CHR. PAVAO: Yeah. Getting the language MR. FARAHL It's an equitable decision. MS. FRENZ: Here's my recommendation. This is Cody Frenz from Corp. Counsel. I can't speak for you. I can draft language that attempts to articulate the conversation that you have all had here today. However, we have had a lot of input from everyone here what seems to be, in my opinion, agreement with the recommendations and the rationales submitted and proposed by both Commissioner Namahoe and Vice -Chair Farahi, with thorough conversation. So, maybe, if this Commission wants to, for example, make a motion that you both submit proposed language to me to incorporate into the proposed findings of fact, I can do so. Because the two of you have been—and, actually, we have three parties, right, that have provided a lot of input. So, maybe amongst the three of you, if this Commission wants to make a motion that you provide both Acting Director Patel and myself MR. FARAHL We provide you with a draft MS. FRENZ: With proposed language that we can incorporate into a much far long-winded, I presume—findings of fact— MR. FARAHL You got the point. MS. FRENZ: Yes. Then I can work on doing so and bring that to you next time to, hopefully, maybe finetune, tweak, and approve—and then we publish. MR. FARAHL Do I have your email? MS. NAMAHOE: Yes, you do, sir. So, Commissioner Namahoe. Just to, again, the clarity what I've appreciated today is the clarity of the language of inflationary adjustment and the clarity of the time period of which we have the most known factors in front of us, which is all the way up through the end of fiscal year `24 to June `25. So, those two parameters have been probably two of my largest take-aways today—so that, at least, the rationale of what we've come forward with—we're all on the same page. I also would Page 39 Salary Commission September 7, 2023 like to convey my respect to Commissioner Nelson. The ability to consider fiscal the second fiscal year, which would be effective July 2024, although it's only six month after the beginning of January 2024 there is reason for caution to be making language upon that because we don't know really what the inflationary costs are going to be borne by the dollar in Hawaii County. But it's also important to consider it anyway and to remember that we have to be elastic in the decisions we make, including yours truly because, again, this room hasn't filled up yet and it's going to. So, I want to thank you all for the process. These processes going forward, the inputs going to be—it's going to test our patience. There will be times when I expect it to be ugly and I thank you all very much for allowing me to be what, I believe, is brave to address the inflationary disparities that these positions are still filled today in Hawai `i County, in spite of the fact that those employees are coming into the process of having their wages fought for or fought against by Salary Commission. Thank you. MS. FRENZ: I guess my final thought would be MR. FARAHL Shouldn't then create the (inaudible). Right? MS. NAMAHOE: I'll send something for all of us. Yes. MS. FRENZ: So, those communications—or two things. First, for Sunshine purposes, we need to protect against serial communications. So, send those proposed language to Commissioner excuse me to Glynis Yamada, our secretary, who will disseminate to Danny and I first, and Chair Pavao. And between my draft and my working with Mr. Patel, we will come up with proposed findings that we will then share with—also, with Chair Pavaoconferring with our minutes when they are ready to put forth proposed findings that we'll incorporate. If any of you want to submit proposed language, please do so. This would be the time to submit proposed language that we can all incorporate but, again, I'm just cautioning you on serial communications that would violate the spirit of Sunshine. In other words, don't be emailing everyone to try to finetune that language. Submit what you want to our wonderful secretary and we will do our best to incorporate and ensure that we track the intent of this Commission and we can adjust and tweak all of it at our next hearing. And before we get into what that next hearing date tentatively look likeI just want to speak to Commissioner Namahoe's comments and concerns and something that this Commission has talked about, kind of, throughout our morning so far—for negotiations. I recognize and I actually agree that we always—negotiations there's a high and a low. I think, ultimately, when this body adopts any proposed findings possibly at the next hearing, that you do so—as your attorney this is my legal guidance you do so because you believe in the recommendation. Because my opinion is we are not here to negotiate with the public. You are here in your capacity as Salary Commissioners, under the Charter for the Salary Commission Page 40 Salary Commission September 7, 2023 to appointor not to appoint—to adopt salary increases or decreases or neither based on what you think is fair and equitable. So, we are not going to be here to negotiate with the public in the next month or two months or three months. You would, theoretically, be holding firm with what you believe is fair and equitable and what your motion passes. So, I just want to clarify, right I think that you guys have started amongst yourselves, kind of, high, low, and found a middle ground that you appear to—within reason—maybe not all, right— to ightto think that this is what's fair and equitable. And I just want to make sure that we are all on the same page that I don't believe it would be a appropriate to be negotiating with the public going forward that you are you've done that amongst yourselves, which is your duty, your obligation, and your function as a Salary Commission. And, as we sit here today, we have a motion that has passed that includes that negotiated amount based on the numbers that we have reached today and the information that is before the Commission. So, I just wanted to clarify that. I think it is dangerous and slippery -slope to then begin negotiating with the public because there will be—as for every person that comes and testifies publicly, there will be that many different perspectives on what is fair and equitable. CHR. PAVAO: Okay. So, again, I think you've all heard the suggestions. If you have any comments or specific language that you want included, to send it to the secretary Yamada and then she will send it to the right parties to review and put together a draft, and then will be shared with everyone where we can make a decision at that time. Okay. MS. FRENZ: If you would all like this is Cody—we can send you a sample of proposed findings that you can see, sort of, what—for example, Honolulu City and County has done—if you want to see exactly what those proposed findings look like and adjust and/or submit language to Glynis for our consideration, as far as drafting for this Board. CHR. PAVAO: Okay. So, we'll move on MS. KAWA`AUHAU: Commissioner Kawa`auhau, I just had a quick question. So, we're still going to get the summary report on the motion that passed and then, additionally, requested language changes separately or MS. FRENZ: So, I think the reality would be, as I understand it, so—and I'll turn to Acting Director Patel to correct me if I'm wrong. We have a motion that passed today. Based on that motion, I believe, Department of Human Resources would be drafting maybe a table, so to speak, of exactly what that looks like. Sort of, like, our golden rod example, right—so it would show what 22.44 percent looks like and it might even show what the 5 percent looks like for the next two fiscal year periods, as we discussed today. In addition to that, there would be—so that would be an exhibit, so to speak—or maybe it would be incorporated directly into the proposed findings. But the proposed findings would lay out Page 41 Salary Commission September 7, 2023 why you are recommending whatever those final numbers are, how you got to those numbers, and why. And then, it would be the numbers as well. CHR. PAVAO: Okay. MS. NAMAHOE: I just emailed myself so that—the homework that will be sent to the two of you. I won't be able to send it to any colleague here. CHR. PAVAO: Yeah. MS. NAMAHOE: It'd go to the two of you. CHR. PAVAO: Yeah. MR. FARAHL So, we send it to Glynis. MS. NAMAHOE: We send everything to Glynis. CHR. PAVAO: Yeah. MS. NAMAHOE: And then, it has to go through Sunshine process. CHR. PAVAO: Yeah. In the interest of being safe with the Sunshine law. Yeah. Okay. So, I think everybody's clear with that. So, we'll move on to "Announcemnets"—any announcements? Schedule our next meeting date. MS. FRENZ: "Unfinished Business," Chair. CHR. PAVAO: Oh, okay. MR. FARAHL What is your resolution and I second it, so I could send it— CHR. t CHR. PAVAO: "Unfinished Business" was all of the communication that we received. So, we can close the communicationI think we received all of that, everybody's got copies of that. MS. FRENZ: Actually, just thought of something, if I could clarify. I'm about to throw another wrench. The motion that passed was a broad across-the-board motion for all of the parties on here. Could I seekI'm seeking clarification. Commissioner Nelson pointed out and Acting Director Patel reminded us that BU11 and 12 is specific to police and fire. So, is the motion as to everyone on here or do we need a second motion to carve out police and fire to track something different? I just need clarity. Page 42 Salary Commission September 7, 2023 MS. NAMAHOE: Is that incumbent upon me? CHR. PAVAO: As the maker of the motion. MS. FRENZ: You are the moving MS. NAMAHOE: I'm happy to. I just want to make sure. Okay. So, the corollary to the passed amendment would be the removal of application of the inflationary adjustment increases being applied to fire chief and police chief from BU11 and BU12. Is that right? MR. NELSON: (Inaudible.) MS. FRENZ: Microphone—microphone and name, please. MR. NELSON: This is Commissioner Nelson, sorry. If you, if we take them out—and I think the 22 percent (inaudible)if we give it to the police and fire, it'llI think it'll—it'll probably exceed what the police has asked for and the fire department didn't ask for anything. So—or they haven't asked for it yet. So, I think I would—it would be best to leave them in there— CHR. PAVAO: Personally, I think it would be best to leave them in there. MS. NAMAHOE: All right. Then I'm not amending nothing. I withdraw my corollary. CHR. PAVAO: Thank you. MR. FARAHL Mr. Chairman, I think we're good with the motion and let's hear what the public says. And then do a parity adjustment for those people. CHR. PAVAO: What we voted on today, is not etched in stone, it just begins the process. MR. FARAHL We could have another resolution to do a parity adjustment for (inaudible). CHR. PAVAO: So, we'll get input from the fire commission, at some point, and we can revisit that as well. Page 43 Salary Commission Unfinished Business (Item 6) September 7, 2023 A. Communication No. 23-11, Dated July 25, 2023, From Salary Commission Chair Steven Pavao, To Appointing Authorities, Requesting Information To Determine Whether Future Salary Adjustments Should Be Incorporated Into The County Of Hawai`i's Fiscal Year 2023-2024 Budget. Adjustments May Represent Increases, Decreases, Or Status Quo (No Adjustments). (This Memo Was Distributed Via Email On July 25, 2023.) The Following Responses Were Received From The Appointing Authorities And/Or Department/Agency Heads (Communication Nos. 23-11.01 Through 23-11.08 Were Circulated On August 4,2023): Communication No. 23-11.01, Dated July 31, 2023, From Tyler J. Benner, County Auditor, Office Of The County Auditor; And Communication No. 23-11.02, Dated July 31, 2023, From Maurice C. Messina, Director, Parks And Recreation Department; And Communication No. 23-11.03, Dated August 1, 2023, From Deanna Sako, Director, Finance Department; And Communication No. 23-11.04, Dated August 2, 2023, From Heather L. Kimball, Chair, Hawaii County Council; And Communication No. 23- 11.05, Dated August 3, 2023, From Mitch Roth, Mayor, County Of Hawaii; And Communication No. 23-11.06, Dated August 3, 2023, From Elizabeth A. Strance, Corporation Counsel, Office Of The Corporation Counsel; And Communication No. 23- 11.07, Received On August 3, 2023, From Kelden B. A. Waltjen, Prosecuting Attorney, Office Of The Prosecuting Attorney; And Communication No. 23-11.08, Dated August 4, 2023, From Ronald Ibarra, Chair, And Members Of The Liquor Commission B. Review Of Existing Compensation Plan To Include Discussion And Consideration Of Ideas For Adjustments To Future Salaries Of Executives And Officials. (Note: This Matter Was Listed On The July 11 And August 4, 2023, Agenda) CHR. PAVAO: So, we close communication. We'll move on to "Announcements"—any announcements? So, we'll close communication—on Communication number 23-11.01, Communication number 23-11.02, Communication number 23-11.03, Communication number 23-11.04, Communication number 23-11.05, Communication number 23-11.06, Communication number 23-11.07, and Communication number 23-11.08. MS. FRENZ: Is there a motion to close those communications? CHR. PAVAO: Chair entertains a motion to close those communications. MR. NELSON: This is Commissioner Nelson. I'll make a motion to close the communications. CHR. PAVAO: Thank you. A second? MR. RIORDAN: Commissioner Riordan, I second that. Page 44 Salary Commission September 7,2023 CHR. PAVAO: Any discussion? If not, we'll vote. All those in favor of closing communications, signify by saying"aye." All "opposed." The voice vote was as follows: AYES: Commissioners Farahi, Dudoit, Kawa'auhau,Nakama, Namahoe, Nelson, Riordan, and Chair Pavao–8. OPPOSED: None. ABSENT & EXCUSED: Commissioner Greenbaum– 1. CHR. PAVAO: The motion is carried. So, we close communication. Announcements (Item 7) CHR. PAVAO: Okay, we'll move on to "Announcements"—any announcements? Schedule Next Meeting Date (Item 8) CHR. PAVAO: So, next meeting is scheduled for Thursday, the 12th of October, at 10 a.m., here in the Council Chambers. Okay? Adjournment (Item 9) CHR. PAVAO: Anything else to bring up, otherwise, we'll adjourn. Okay, meeting adjourned. Thank you very much-12 p.m. exactly. Thank you. Meeting adjourned at 12 p.m. Respectfully submitted, )41 r Glynis Yamada, Sej6naL tary-Reporter APPROVED: Steve ' :vao, Chair Salary • mission Page 45 HUMAN RESOURCES AUG 0 4 2023 HAWAII COUNTY PARITY MAUI COUNTY RECOMMEND 3 2(, 4' ADJUSTMENT RECEI ED Executive Salaries 18%INCREASE Executive Salaries Increase/Decrease/ CONSIDERATION NOTES No Change By Percentage or POSITIONS As of 07/01/2022 2018-2022 No Increase As of 07/01/2023 Dollar Amt To the Salary Commission Board 205,294 Population See Notes 167,730 Population 20%More than Maui 20%Less than Hawaii Island MAYOR $ 162,582.00_ 191,846.76 $ 159,578.00 M.D./ADMIN.ASS"f/DIR. $ 153,612.00 181,262.16 $ 156,149.00 DEPUTY M.D. $ 132,744.00 156,637.92 $ 140,534.00 PROS ATTY $ 153,228.00 180,809.04 $ 164,831.00 1ST DEPUTY PA $ 145,968.00 172,242.24 $ 156,589.00 DEPUTIES:PA Corp Counsel $ 79,656.00 93,994.08 $ 140,252.00 DEPUTIES:PA Corp Counsel $ 137,904.00 162,726.72 $ 142,877.00 DEPUTIES:CC Corp Counsel $ 85,812.00 101,258.16 $ 147,265.00 DEPUTIES:CC Co .Counsel $ 137,904.00 162,726.72 $0.00 DEPARTMENT HEADS BUDGET&FINANCE $ 132,726.00 156,616.68 $ 137,004.00 ATTORNEY GENERALCORP COUNSEL $ 153,228.00 180,809.04 $ 164,831.00 HUMAN RESOURCES $ 128,628.00 151,781.04 $ 147,695.00 COUNTY OOFFHHAWAII Comm.No. 23-13 Date September /, cuz.5 ATT. A INFO TECH $ 126,420.00 149,175.60 $0.00 POLICE $ 153,270.00 180,858.60 $ 175,133.00 FIRE $ 151,200.00 178,416.00 $ 166,793.00 PLANNING $ 132,744.00 156,637.92 $ 151,425.00 PUBLIC WORKS $ 132,582.00 156,446.76 $ 161,270.00 ENVIRONMENTAL SVCS/MGT $ 132,744.00 156,637.92 $ 153,590.00 LIQUOR $ 126,420.00 149,175.60 $ 153,393.00 WATER(1/1/21) $ 159,600.00 188,328.00 $ 157,393.00 HOUSING $ 126,420.00 149,175.60 $ 140,945.00 PARKS $ 128,760.00 151,936.80 $ 148,888.00 RESEARCH&DEV/ECONOMIC DEV. $ 126,420.00 149,175.60 $0.00 DEPUTIES BUDGET&FINANCE $ 126,402.00 149,154.36 $ 130,175.00 1ST DEPUTY AG/CORP COUNSEL $ 145,968.00 172,242.24 $ 156,589.00 HUMAN RESOURCES $ 122,628.00 144,701.04 $ 132,925.00 POLICE $ 145,968.00 172,242.24 $ 166,376.00 FIRE $ 143,640.00 169,495.20 $ 166,376.00 PLANNING $ 126,420.00 149,175.60 $ 136,283.00 PUBLIC WORKS $ 126,264.00 148,991.52 $ 145,144.00 ENVIRONMENTAL SVCS/MGT $ 126,420.00 149,175.60 $ 138,232.00 WATER 1/1/21 $ 151,620.00 178,911.60 $ 140,487.00 PARKS $ 122,628.00 144,701.04 $ 134,000.00 RESEARCH&DEV/ECONOMIC DEV. $ 113,778.00 134,258.04 $0.00 LEGISLATIVE BRANCH COUNCIL CHAIRPERSON $ 77,016.00 90,878.88 $ 86,336.00 COUNCIL MEMBERS $ 70,008.00 82,609.44 $ 80,299.00 COUNTY CLERK $ 126,420.00 149,175.60 $ 156,982.00 DEPUTY COUNTY CLERK $ 113,778.00 134,258.04 $ 149,132.00 COUNTY AUDITOR $ 126,420.00 149,175.60 $ 151,781.00 "**The Dollar inflation Rate between 2018-2023 increase accumlatively by 22.44%Per the CPI Inflation Calculator Enclosed is the Offical Data Foundation/Alioth LLC Reference Material for your convenience *0.00=No Maui County Position *Population Data Attached for your reference *Deputies:PA,Corp Counsel Figures are a range as shown in the comparison worksheet provided by Human Resources 8/4/23, 1:21 PM $1 in 2018 20231 Inflation Calculator $ 1 in 2018 is worth $ 1 .21 today Amount $ 1 Start year End year 2018 2023 $1 in 2020 -.2023 $1 in 2015 2023 Inflation rate in 2023 Future inflation calculator Value of $1 from 2018 to 2023 $1 in 2018 is equivalent in purchasing power to about $1.21 today, an increase of $0.21 over 5 years. The dollar had an average inflation rate of 3.96% per year between 2018 and today, producing a cumulative price increase of 21.45%. This means that today's prices are 1.21 times as high as average prices since 2018, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 82.645% of what it could buy back then. The inflation rate in 2018 was 2.49%. The current inflation rate compared to last year is now 2.97%. If this number holds, $1 today will be equivalent in buying power to $1.03 next year. The current inflation rate page gives more detail on the latest inflation rates. Contents 1. Overview 2. Buying Power of $1 3. Inflation by City/ Country 4. Inflation by Spending Category https://www.in2013dollars.com/us/inflation/2018?amount=1#:—:text=Chained inflation averaged 3.65%25 per,of%240.21 for All Items). 1/15 8/4/23,1:21 PM $1 in 2018—,20231 Inflation Calculator 5. Formulas & How to Calculate 6. Alternate Measurements 7. Comparison to S&P 500 Index 8. Data Source Inflation from 2018 to 2023 Cumulative price change 21.45% Average inflation rate 3.96% Converted amount $1.21 $1 base Price difference $0.21 $1 base CPI in 2018 251.230 CPI in 2023 305.109 Inflation in 2018 2.49% Inflation in 2023 2.97% $1 in 2018 $1.21 in 2023 USD inflation since 2018 Annual Rate, the Bureau of Labor Statistics CPI https://www.in2013dollars.com/us/inflation/2018?amount=1#:—:text=Chained inflation averaged 3.65%25 per,of%240.21 for All Items). 2/15 8/4/23, 1:21 PM $1 in 2018— 20231 Inflation Calculator a a 4 1111 2018 2019 2020 2021 2022 2023 Buying power of $1 in 2018 This chart shows a calculation of buying power equivalence for $1 in 2018 (price index tracking began in 1635). For example, if you started with $1, you would need to end with $1.21 in order to "adjust" for inflation (sometimes refered to as "beating inflation"). $1 in 2018, adjusted for inflation 08 06 04 0.2 $0 2018 2019 2020 2021 2022 2023 https://www.in2013dollars.com/us/inflation/2018?amount=l#—:text=Chained inflation averaged 3.65%25 per,of%240.21 for All Items). 3/15 8/4/23, 1:21 PM $1 in 2018—.2023 I Inflation Calculator When $1 is equivalent to $1.21 over time, that means that the "real value" of a single U.S. dollar decreases over time. In other words, a dollar will pay for fewer items at the store. This effect explains how inflation erodes the value of a dollar over time. By calculating the value in 2018 dollars, the chart below shows how $1 is worth less over 5 years. Buying power of$1 over time, 2018-2023 $1 0.9 0.8 0.7 0.6 0a 0.4 03 0.2 01 SO 2018 2018 2019 2020 2021 2022 2023 According to the Bureau of Labor Statistics, each of these USD amounts below is equal in terms of what it could buy at the time: Dollar inflation: 2018-2023 Year Dollar Value Inflation Rate 2018 $1.00 2.49% 2019 $1.02 1.76% 2020 $1.03 1.23% 2021 $1.08 4.70% 2022 $1.16 8.00% 2023 $1.21 4.26%* * Compared to previous annual rate. Not final. See inflation summary for latest 12-month trailing value. https://www.in2013dollars.com/us/inflation/2018?amount=1#:—:text=Chained inflation averaged 3.65%25 per,of%240.21 for All Items). 4/15 8/4/23, 1:21 PM $1 in 2018—>20231 Inflation Calculator Download as CSV/Excel This conversion table shows various other 2018 amounts in today's dollars, based on the 21.45% change in prices: Conversion: 2018 dollars today Initial value Equivalent value $1 dollar in 2018 $1.21 dollars today $5 dollars in 2018 $6.07 dollars today $10 dollars in 2018 $12.14 dollars today $50 dollars in 2018 $60.72 dollars today $100 dollars in 2018 $121.45 dollars today $500 dollars in 2018 $607.23 dollars today $1,000 dollars in 2018 $1,214.46 dollars today Inflation by City Inflation can vary widely by city, even within the United States. Here's how some cities fared in 2018 to 2023 (figures shown are purchasing power equivalents of $1): • Phoenix, Arizona: 5.29% average rate, $1 —> $1.23, cumulative change of 22.88% • Tampa, Florida: 5.10% average rate, $1 --> $1.22, cumulative change of 22.00% https://www.in2013dollars.com/us/inflation/2018?amount=1#:—:text=Chained inflation averaged 3.65%25 per,of%240.21 for All Items). 5/15 8/4/23, 1:21 PM $1 in 2018—>2023 Inflation Calculator • Atlanta, Georgia: 4.74% average rate, $1 - $1.26, cumulative change of 26.08% • Miami-Fort Lauderdale, Florida: 4.51% average rate, $1 -> $1.25, cumulative change of 24.71% • Seattle, Washington: 4.44% average rate, $1 -* $1.24, cumulative change of 24.28% • Dallas-Fort Worth, Texas: 4.05% average rate, $1 -> $1.22, cumulative change of 21.98% • Minneapolis-St Paul, Minnesota: 3.86% average rate, $1 --> $1.16, cumulative change of 16.34% • Denver, Colorado: 3.83% average rate, $1 -> $1.16, cumulative change of 16.21% • San Diego, California: 3.81% average rate, $1 -> $1.16, cumulative change of 16.12% • Detroit, Michigan: 3.77% average rate, $1 --> $1.20, cumulative change of 20.31% • Philadelphia, Pennsylvania: 3.61% average rate, $1 -> $1.19, cumulative change of 19.39% • St Louis, Missouri: 3.58% average rate, $1 -> $1.19, cumulative change of 19.23% • San Francisco, California: 3.39% average rate, $1 -> $1.18, cumulative change of 18.16% • Chicago, Illinois: 3.39% average rate, $1 --> $1.18, cumulative change of 18.12% • Boston, Massachusetts: 3.33% average rate, $1 --> $1.18, cumulative change of 17.82% • Houston, Texas: 3.21% average rate, $1 -> $1.17, cumulative change of 17.14% • New York: 3.15% average rate, $1 -> $1.17, cumulative change of 16.76% Phoenix, Arizona experienced the highest rate of inflation during the 5 years between 2018 and 2023 (5.29%). New York experienced the lowest rate of inflation during the 5 years between 2018 and 2023 (3.15%). Note that some locations showing 0% inflation may have not yet reported latest data. https://www.in2013dollars.com/us/inflation/2018?amount=1#:—:text=Chained inflation averaged 3.65%25 per,of%240.21 for All Items). 6/15 8/4/23, 1:21 PM $1 in 2018—>2023 I Inflation Calculator Inflation by Country Inflation can also vary widely by country. For comparison, in the UK £1.00 in 2018 would be equivalent to £1.31 in 2023, an absolute change of£0.31 and a cumulative change of 31.06%. In Canada, CA$1.00 in 2018 would be equivalent to CA$1.22 in 2023, an absolute change of CA$0.22 and a cumulative change of 21.64%. Compare these numbers to the US's overall absolute change of $0.21 and total percent change of 21.45%. Reel in Adventure SPONSORED CONTENT LEARN MORE Inflation by Spending Category CPI is the weighted combination of many categories of spending that are tracked by the government. Breaking down these categories helps explain the main drivers behind price changes. Between 2018 and 2023: • Gas prices increased from $2.54 per gallon to $3.71 • Bread prices increased from $1.28 per loaf to $1.94 • Milk prices increased from $2.53 per gallon to $3.95 • Egg prices increased from $1.77 per carton to $2.22 • Chicken prices increased from $1.51 per per 1 lb of whole chicken to $1.95 • Electricity prices increased from $0.14 per KwH to $0.17 https://www.in2013dollars.com/us/inflation/2018?amount=1#:-:text=Chained inflation averaged 3.65%25 per,of%240.21 for All Items). 7/15 8/4/23, 1:21 PM $1 in 2018 2023 I Inflation Calculator This chart shows the average rate of inflation for select CPI categories between 2018 and 2023. Inflation by category(%) Food and beverages Transportation Housing Other goods and services Recreation Medical care Education and communication Apparel D 05 1 1.5 2 2.5 3 3.5 4 4.5 5% Compare these values to the overall average of 3.96% per year: Category Avg Inflation (%) Total Inflation (%) $1 in 2018 2023 Food and beverages 4.70 25.79 1.26 Housing 4.16 22.59 1.23 Apparel 0.85 4.34 1.04 Transportation 4.64 25.47 1.25 Medical care 2.50 13.15 1.13 Recreation 2.65 13.95 1.14 Education and communication 1.21 6.22 1.06 Other goods and services 3.71 19.98 1.20 https://www.in2013dollars.com/us/inflation/2018?amount=1#:-:text=Chained inflation averaged 3.65%25 per,of%240.21 for All Items). 8/15 8/4/23, 1:21 PM $1 in 2018—+20231 Inflation Calculator The graph below compares inflation in categories of goods over time. Click on a category such as "Food" to toggle it on or off: Inflation over time by category (%) im Food and beverages :p : Housing _ Apparel MEI Transportation ICOI. , �cr�a �r Cdt,ctien Othcr good...*and 3crricc_ 20% 15 10 �v4 5 1— — — 0 ♦_ 0 f/ -5 o-S. 2018 2019 2020 2021 2022 For all these visualizations, it's important to note that not all categories may have been tracked since 2018. This table and charts use the earliest available data for each category. Inflation rates of specific categories Medical Care • Housing • Rent • Food • More Inflation-adjusted measures S&P 500 price • S&P 500 earnings • Shiller P/E https://www.in2013dollars.com/us/inflation/2018?amount=1#:—:text=Chained inflation averaged 3.65%25 per,of%240.21 for All Items). 9/15 8/4/23, 1:21 PM $1 in 2018—>2023 I Inflation Calculator How to calculate inflation rate for $1 since 2018 Our calculations use the following inflation rate formula to calculate the change in value between 2018 and today: CPI today 2018 USD value = Today's value CPI in 2018 Then plug in historical CPI values. The U.S. CPI was 251.23 in the year 2018 and 305.109 in 2023: 305.109 x $1 = $1.21 251.23 $1 in 2018 has the same "purchasing power" or "buying power" as $1.21 in 2023. To get the total inflation rate for the 5 years between 2018 and 2023, we use the following formula: CPI in 2023 - CPI in 2018 x 100 = Cumulative inflation rate (5 years) https://www.in2013dollars.com/us/inflation/2018?amount=1#:-:text=Chained inflation averaged 3.65%25 per,of%240.21 for All Items). 10/15 8/4/23, 1:21 PM $1 in 2018-.2023 I Inflation Calculator CPI in 2018 Plugging in the values to this equation, we get: 305.109 - 251.23 x 100 = 21% 251.23 Alternate Measurements of Inflation There are multiple ways to measure inflation. Published rates of inflation will vary depending on methodology. The Consumer Price Index, used above, is the most common standard used globally. Alternative measurements are sometimes used based on context and economic/political circumstances. Below are a few examples of alternative measurements. Personal Consumption Expenditures (PCE) Inflation The PCE Price Index is the U.S. Federal Reserve's preferred measure of inflation, compiled by the Bureau of Economic Analysis. It measures the change in prices of goods and services purchased by consumers. https://www.in2013dollars.com/us/inflation/2018?amount=1#:-:text=Chained inflation averaged 3.65%25 per,of%240.21 for All Items). 11/1. 8/4/23, 1:21 PM $1 in 2018 20231 Inflation Calculator The PCE Price Index changed by 3.16% per year on average between 2018 and 2023. The total PCE inflation between these dates was 16.86%. In 2018, PCE inflation was 2.13%. This means that the PCE Index equates $1 in 2018 with $1.17 in 2023, a difference of $0.17. Compare this to the standard CPI measurement, which equates $1 with $1.21. The PCE measured -4.59% inflation compared to standard CPI. For more information on the difference between PCE and CPI, see this analysis provided by the Bureau of Labor Statistics. Core Inflation Also of note is the Core CPI, which uses the standard CPI but omits the more volatile categories of food and energy. Core inflation averaged 3.50% per year between 2018 and 2023 (vs all-CPI inflation of 3.96%), for an inflation total of 18.76%. In 2018, core inflation was 2.14%. When using the core inflation measurement, $1 in 2018 is equivalent in buying power to $1.19 in 2023, a difference of $0.19. Recall that the converted amount is $1.21 when all items including food and energy are measured. Chained Inflation Chained CPI is an alternative measurement that takes into account how consumers adjust spending for similar items. Chained inflation averaged 3.65% per year between 2018 and 2023, a total inflation amount of 19.62%. According to the Chained CPI measurement, $1 in 2018 is equal in buying power to $1.20 in 2023, a difference of $0.20 (versus a converted amount of $1.21/change of $0.21 for All Items). In 2018, chained inflation was 2.02%. https://www.in2013dollars.com/us/inflation/2018?amount=1#:—:text=Chained inflation averaged 3.65%25 per,of%240.21 for All Items). 12/15 8/4/23, 1:21 PM $1 in 2018 >2023 I Inflation Calculator Comparison to S&P 500 Index The average inflation rate of 3.96% has a compounding effect between 2018 and 2023. As noted above, this yearly inflation rate compounds to produce an overall price difference of 21.45% over 5 years. To help put this inflation into perspective, if we had invested $1 in the S&P 500 index in 2018, our investment would be nominally worth approximately $1.75 in 2023. This is a return on investment of 74.70%, with an absolute return of$0.75 on top of the original $1. These numbers are not inflation adjusted, so they are considered nominal. In order to evaluate the real return on our investment, we must calculate the return with inflation taken into account. The compounding effect of inflation would account for 17.66% of returns ($0.31) during this period. This means the inflation-adjusted real return of our $1 investment is $0.44. You may also want to account for capital gains tax, which would take your real return down to around $0 for most people. Investment in S&P 500 Index, 2018-2023 Original Amount Final Amount Change Nominal $1 $1.75 74.70% Real $1 $1.44 43.85% Inflation Adjusted Information displayed above may differ slightly from other S&P 500 calculators. Minor discrepancies can occur because we use the latest CPI data for inflation, annualized inflation numbers for previous years, and we compute S&P price and dividends from January of 2018 to latest available data for 2023 using average monthly close price. For more details on the S&P 500 between 2018 and 2023, see the stock market returns calculator. Data source & citation https://www.in2013dollars.com/us/inflation/2018?amount=1#::text=Chained inflation averaged 3.65%25 per,of%240.21 for All Items). 13/15 8/4/23, 1:21 PM $1 in 2018—.2023 1 Inflation Calculator Raw data for these calculations comes from the Bureau of Labor Statistics' Consumer Price Index (CPI), established in 1913. Price index data from 1774 to 1912 is sourced from a historical study conducted by political science professor Robert Sahr at Oregon State University and from the American Antiquarian Society. Price index data from 1634 to 1773 is from the American Antiquarian Society, using British pound equivalents. You may use the following MLA citation for this page: "$1 in 2018 2023 I Inflation Calculator." Official In flation Data, Alioth Finance, 1 Aug. 2023, https://www.officialdata.org/us/inflation/2018?amount=1. Special thanks to QuickChart for their chart image API, which is used for chart downloads. in2013dollars.com is a reference website maintained by the Official Data Foundation. • About the author Ian Webster is an engineer and data expert based in San Mateo, California. He has worked for Google, NASA, and consulted for governments around the world on data pipelines and data analysis. Disappointed by the lack of clear resources on the impacts of inflation on economic indicators, Ian believes this website serves as a valuable public tool. Ian earned his degree in Computer Science from Dartmouth College. Email Linkedln • Twitter Read more about inflation and investment. Other resources: • U.S. Economy • Canada Inflation • U.K. Inflation • Australia Inflation • Euro Inflation https://www.in2013dollars.com/us/inflation/2018?amount=1#:—:text=Chained inflation averaged 3.65%25 per,of%240.21 for All Items). 14/15 8/4/23, 1:21 PM $1 in 2018 20231 Inflation Calculator • Venezuela Inflation © Official Data Foundation / Alioth LLC. Contact • Privacy policy Information from your device can be used to personalize your ad experience. Do not sell or share my personal information. A RAPTIVE PARTNER SITE https://wvwv.in2013dollars.com/us/inflation/2018?amount=1#:—:text=Chained inflation averaged 3.65%25 per,of%240.21 for All Items). 15/15 8/4/23, 1:56 PM Hawaii County,Hawaii Population 2023 World Population Review Hawaii County,Hawaii Population 2023 Show Sources Hawaii County, Hawaii Population 2023 205,294 - 2023 Population:205.3K _200K 0_ 0 _190' 4'3 1,e YEAR Hawaii County,Hawaii's estimated 2023 population is 205,294 with a growth rate of 0.76%in the past year according to the most recent United States census data.Hawaii County,Hawaii is the 2nd largest county in Hawaii.The 2010 population was 185,079 and has seen a growth of 10.92%since that time. Note:data after 2021 is projected based on recent change CSV I7JJSON Year N., Population Growth Growth Rate 2023 205,294 1,555 0.76% 2022 203,739 1,555 0.77% https://worldpopulationreview.com/us-counties/hi/hawaii-county-population 1/25 8/4/23,2:01 PM Maui County, Hawaii Population 2023 World Population Review Hide Sources Maui County,Hawaii Population 2023 Counties of the United States:1790-1990 Maui County, Hawaii Population 2023 167,730 _16aK 166K _160' _ CO(1 Z O a. o_ O 4. _160K 186K 154' 6 1 4 .y0 1_u 'Leryo 1O YEAR Maui County, Hawaii's estimated 2023 population is 167,730 with a growth rate of 0.59%in the past year according to the most recent United States census data.Maui County,Hawaii is the 3rd largest county in Hawaii.The 2010 population was 154,834 and has seen a growth of 8.33%since that time. Note:data after 2021 is projected based on recent change CSV 0 JSON Year.. Population Growth Growth Rate V • https://worldpopulationreview.com/us-counties/hi/maui-county-population 1/25 Submitted by HR Director Waylen L. K. Leopoldino COUNTY OF HAWAII SALARY COMMISSION PAY PLAN FOR EXECUTIVES AND ELECTED OFFICIALS 1. This amended Pay Plan supersedes the Salary Commission's January 1, 2018 Pay Plan. The Salary Commission, at its meeting held on January 18, 2018, amended the Pay Plan as noted by the asterisks in the schedule. 2. Effective March 1, 2018, the following positions will be paid the salary rates designated below. POSITION SALARY 03/01/18 Mayor ** 162,582 Managing Director ** 153,612 Deputy Managing Director ** 132,744 Prosecuting Attorney 153,228 First Deputy Prosecuting Attorney 145,968 Fire Chief 151,200 Deputy Fire Chief 143,640 Chief of Police 153,270 Deputy Chief of Police 145,968 Corporation Counsel 153,228 Assistant Corporation Counsel 145,968 Director of Human Resources 128,628 Deputy Dir.of Human Resources 122,628 Director of Environmental Mgmt. 132,744 Deputy Dir. of Environmental Mgmt. 126,420 Director of Finance 132,726 Deputy Dir.of Finance 126,402 Housing Administrator ** 126,420 Director of Planning 132,744 Deputy Dir.of Planning 126,420 Director of Public Works 132,582 Deputy Dir. of Public Works 126,264 Director of Parks and Recreation 128,760 Deputy Dir. Parks and Recreation 122,628 Director of Information Tech. ** 126,420 Director of Liquor Control ** 126,420 Director of Research and Dev. ** 126,420 Deputy Dir.of Research and Dev. ** 113,778 County Clerk ** 126,420 Deputy County Clerk ** 113,778 Legislative Auditor ** 126,420 Council Chair *' 77,016 SALARY COMMISSION COUNTY OF HAWAII Council Member ** 70,008 Comm.No. 23-04 Date P/June 8, 2023 ATT. B ("Goldenrod") Pay Plan for Executives and Elected Officials February 6, 2018 Page 2 3. The Commission may authorize a higher salary rate for a position upon request by the appropriate appointing authority. The request shall be accompanied by a reasonable explanation upon which the Commission may act. 4. The Commission shall periodically review and adjust the compensation of the executives and elected officials so that their total salaries and benefits have a reasonable relationship to compensation of other employees in the public and private sectors. Mitchell D.Roth Danny B. Pate( Mayor fo** • Acitrtg nrector giuman Resources dtrft't-Zrer:41 •t;ii re, RCVD HUMAN RESOURCES 2023 JUL 7 k49:00 County of Hawaiii Department of Human Resources Aupuni Center•101 Paunhi Street,Suite 2•Hifo,flaw96720.(808)961 8361.Fax(808)961 8617 website:intl://hawrittenunty.gewAtortrin-resources c-rttait.jobs@rumnircountyloy July 7, 2023 To: Steven Pavao, Chair and Members of the Salary Commission 4 From: Danny B. Patel, Acting Director Department of Human Resources Subject: Salary Commission Inquiries re the Comparison Between Department Head and the Highest Paid Subordinate Salaries Within Their Respective Department; and a History of Collective Bargaining Pay Increases for Bargaining Units 01, 02, 03, 04, 11, 12, 13, and 14/15 At the Salary Commission meeting held on June 8, 2023, there was discussion concerning salary inversions between the department head and the highest paid subordinate (employee)with their respective departments, as well as the history of bargaining unit increases over the past years through present. Please find attached a chart listing the salaries for department heads and deputies, comparing them to the highest paid civil service subordinate salaries (this does not include appointed subordinates). Also attached is a history of collective bargaining pay increases from 2018 through July 1, 2024. I look forward to addressing any questions you may have at its next meeting scheduled on July 11, 2023. DBP/gy SALARY COMMISSION Attachments COUNTY OF HAWAII Comm.No. 23-09 Date P/July 11, 2023 Hawaii County is an Equal Opportunity Provider and Entp(oyr. ATT. C Revised 7/10/23 Highest Paid Salary Set by Salary Subordinate* Commission (Salary as of Effective 3/1/18 07/01/23) DEPT HEAD DEPUTY DEPARTMENT SALARY SALARY SALARY CORP COUNSEL 153,228 145,968 83,388 FINANCE 132,726 126,402 144,120 HUMAN RESOURCES 128,628 122,628 115,788 PLANNING 132,744 126,420 120,276 RESEARCH & DEV 126,420 113,778 80,184 INFORMATION TECH 126,420 -- 104,736 HOUSING 126,420 -- -- POLICE 153,270 145,968 182,712 FIRE 151,200 143,640 134,472 LIQUOR CONTROL 126,420 -- 133,944 PROS ATTORNEY 153,228 145,968 86,712 PUBLIC WORKS 132,582 126,264 135,960 PARKS&REC 128,760 122,628 129,240 ENV MANAGEMENT 132,744 126,420 138,108 MAYOR 162,582 MANAGING DIRECTOR 153,612 DEP MANAGING DIRECTOR 132,744 COUNCIL CHAIRPERSON 77,016 COUNCIL MEMBER (8) 70,008 COUNTY CLERK 126,420 DEPUTY COUNTY CLERK 113,778 COUNTY AUDITOR 126,420 *Civil Service subordinates only. Does not include Appointed subordinates. BARGAINING UNIT("BU") TOTAL ACROSS-THE-BOARD ("ATB") PAY INCREASE HISTORY INCREASES SINCE 2018 BU 01 June 1, 2018 3.2%ATB Increase 3.20% May 1, 2019 3.45%ATB Increase 3.45% July 1, 2019 2.0% ATB Increase 2.00% January 1, 2020 1.2%ATB Increase 1.20% July 1, 2020 2.0%ATB Increase 2.00% January 1, 2021 1.2%ATB Increase 1.20% 10/1/2022 3.72%ATB Increase 3.72% July 1, 2023 5.0%ATB Increase 5.00% 21.77% Total July 1, 2024 5.0%ATB Increase BU 02 January 1, 2018 1.2%ATB Increase 1.20% July 1, 2018 2.25%ATB Increase 2.25% January 1, 2019 1.2%ATB Increase 1.20% July 1, 2020 1.2%ATB Increase 1.20% January 1, 2021 1.2%ATB Increase 1.20% July 1, 2022 3.72%ATB Increase 3.72% July 1, 2023 5.0%ATB Increase 5.00% 15.77% Total July 1, 2024 5.0%ATB Increase BU 03 January 1, 2018 1.5%ATB Increase 1.50% July 1, 2018 2.25%ATB Increase 2.25% January 1, 2019 1.25%ATB Increase 1.25% January 1, 2021 3.46%ATB Increase 3.46% October 1, 2022 3.72%ATB Increase 3.72% July 1, 2023 5.0%ATB Increase 5.00% 17.18% Total July 1, 2024 5.0%ATB Increase BU 04 January 1, 2018 1.5%ATB Increase 1.50% July 1, 2018 2.25%ATB Increase 2.25% January 1, 2019 1.25%ATB Increase 1.25% July 1, 2020 3.60%ATB Increase 3.60% January 1, 2021 3.74%ATB Increase 3.74% July 1, 2022 3.72%ATB Increase 3.72% July 1, 2023 4.96%ATB Increase 4.96% 21.02% Total July 1, 2024 5.0%ATB Increase BU 11 July 1, 2018 2.25%ATB Increase 2.25% July 1, 2019 2%ATB Increase 2.00% July 1, 2020 2% ATB Increase 2.00% July 1, 2022 3.0%ATB Increase 3.00% July 1, 2023 4.0%ATB Increase 4.00% 13.25% Total July 1, 2024 4.0%ATB Increase BU 12 July 1, 2018 2.25%ATB Increase 2.25% July 1, 2019 2%ATB Increase 2.00% July 1, 2020 2%ATB Increase 2.00% July 1, 2022 5.0%ATB Increase 5.00% July 1, 2023 5.0%ATB Increase 5.00% 16.25% Total July 1, 2024 5.0%ATB Increase BU 13 July 1, 2018 2.25%ATB Increase 2.25% July 1, 2019 2.15%ATB Increase 2.15% July 1, 2020 2.03%ATB Increase 2.03% July 1, 2022 2.0%ATB Increase 2.00% July 1, 2023 4.0%ATB Increase 4.00% 12.43% Total July 1, 2024 3.59%ATB Increase BU 14/15 July 1, 2018 2.25%ATB Increase 2.25% July 1, 2019 4.5%ATB Increas 4.50% July 1, 2020 4.5%ATB Increase 4.50% July 1, 2022 3%ATB Increase 3.00% July 1, 2023 4%ATB Increase 4.00% 18.25% Total July 1, 2024 4%ATB Increase R n�xm, mxch"xn.x"uu Robinson. ' Denby nci, Vice Chair Mayor John Bertsch,Member w • Travis log,Member Josephine Pelayo.Member Pudding Lassitcr,Member RodMember, �u���� Anthony Sur,Member COUNTY OF HAWAD^D Police Commission Aupuni Center 101 Pauahi Street,Suite 9.Hilo,Hawaii 96720 Phone: (808)932-2950 Fax: (808)932-2949 August 18, 2023 To: Steven Pavoo, Chair, Salary Commission From: Rick Robinson, Chair, Police Commission Subject: Response to Salary Commission's Inquiry Regarding Proposed Salary Adjustments for Fiscal Year 2023-2024 1. What are the primary duties and responsibilities of the department/agency? As the primary law enforcement agency for the over 200.800 residents of Hawaii County, the Hawaii Police Department (HPD) has five major responsibilities: protecting citizen's hghta, enforcing state law and county ondinancea, preventing criminal aodvity, responding to ennergencies, and providing other services to the community as needed. In the most recent County Fiscal Year (CFY), ending June 30, 2023. the HPD responded to over 125.000 calls for service, handled 890 major traffic collision investigations (including 24 traffic fatalities), arrested nearly 1.000 impaired drivaro, made hundreds of drug busts, investigated almost 6,000 serious felony inveodgahona, and issued tens of thousands of traffic citations. In addition, department personnel drove literally millions of miles patrolling neighborhooda, provided outreach to thousands of county residents in need, helped civic groups with hundreds of safety and security pnaaenbat|onm, and organized fishing derbies and other sporting events for island youth. HPD's administrative staff responded to thousands of Body-Worn Camera footage and other records requeetu, processed hundreds of Concealed Carry firearms permits (and thousands of firearms acquisition pennits), responded to tens of thousands of calls, texts, |ettera, and other inquiriee, and continued to develop and maintain a wirelessly connected SALARY COMMISSION x^oo/'/County is«''Equal Opportunity Provider and Employer. COUNTY OF HAWAII ' 23-\} O9 �omm�«o Date p/Scp��mb=r 7, 2023 ATT. D Response to Salary Commission Page 2 network of in-car, desktop, and even virtual server computers to support the department's ever-growing needs. In short, the efforts of the hard-working women and men of the HPD are instrumental in keeping our island community a safe place to live, work, and raise a family. 2. How many employees does the department/agency employ? The HPD has 486 authorized sworn positions, 159 full-time civilian positions, 4 part-time civilian positions, and 40 hourly employees. When fully staffed, this adds up to 689 individuals or 656.25 Full Time Equivalent(FTE) paid employees. In addition, the department has 15 volunteer reserve officers, and 8 other civilian volunteers. 3. What is the department/agency organizational structure? The HPD is led by the Chief of Police. The department's administration includes a Deputy Police Chief, the Office of Professional Standards, the Criminal Intelligence Unit, and a Headquarters staff. The department is further subdivided into three bureaus: Administrative, Area I (Hilo) Operations, and Area II (Kona) Operations. The Administrative Bureau is led by an Assistant Chief, two Police Majors and one Police Captain. This team oversees the daily operations of several divisions and sections including: Training, Public Relations, Accreditation, Word Processing Center, Human Resources, Finance, Special Response (SWAT)Team, Communications (Dispatch) Center, Computer Center, Records& Identification Section, and the Traffic Services Section. Area 1 Operations Bureau is led by an Assistant Chief and a Police Major. There are three patrol districts in Area 1 (Hamakua, South Hilo, Puna) and each is led by a Police Captain. The patrol districts are responsible for all 9-1-1 and non-emergency calls for service on the east side of the island, as well as misdemeanor and some felony criminal investigation and other patrol-type functions. The Area 1 Criminal Investigation Division is led by a fourth Police Captain who oversees the Criminal Investigation Section, Crime Lab, Vice Section, and Juvenile Aid Section. Area 1 also has a Traffic Enforcement Unit, Community Policing, and Hawaii Island Police Activities League (HI-PAL) sections. Area 2 Operations Bureau is also led by an Assistant Chief and a Police Major. There are four patrol districts in Area 2 (Kona, South Kohala, North Kohala, Ka'u) and each is led by a Police Captain. The patrol districts in Area 2 are responsible for all 9-1-1 and non-emergency calls for service on the west side of the island, as well as misdemeanor and some felony criminal investigation and other patrol-type functions. The Area 2 Criminal Investigation Division is led by a fifth Police Captain who oversees the Criminal Investigation Section, Vice Section, and Juvenile Aid Section. Area 2 also has a Traffic . Enforcement Unit and Community Policing section. Response to Salary Commission Page 3 4. What is the department/agency operating budget and funding encompass? For CFY 2023-24, the HPD's annual operating budget is $86,364,493. This amount includes approximately$61 million in'salary and wages, $14.6 million in current expense funding, $6.8 million in grant-funded overtime and equipment, $2.7 million in equipment, and $1.2 million in miscellaneous purchases. To assist with managing this budget, the department operates its own Finance and Human Resources units. 5. What major challenges does the department/agency face? Like any modern police department, the HPD faces several challenges; three of which are highlighted in this response. Despite a growing county population and even more quickly growing demand for police services, the HPD has been understaffed for years. Working with other county agencies to streamline hiring and selection processes is expected to make an impact and get the department fully staffed within the next 24 months. However, there are growing demands from some county council districts for an increased police presence, which will require more sworn and civilian staff positions. Over the past two decades, the role of the police department has changed from being a law enforcement agency, to an agency that is being asked to provide social services in key areas of the community. As a result, a growing portion of the department's already limited resources are being diverted away from crime prevention and enforcement towards providing outreach to traditionally underserviced segments of the community. In an effort to maximize its efforts, the HPD is focusing on diverting individuals away from the justice system and towards government and non-profit advocacy groups to help assist them with providing services, housing, and family re-unification. The third major challenge the HPD faces is the ever-increasing flow of illicit drugs into our communities. While methamphetamines have long been a scourge in Hawaii County, the rise of extremely dangerous drugs, like fentanyl, are not only causing an increase in the number of overdose injuries and deaths, but could potentially prove fatal for underprepared or unprotected first responders. With the flow of drugs has also come an uptick in violent crime associated with drug dealers, drug abusers, and drug trafficking organizations. While the HPD has been successful at fentanyl interdiction efforts, the department cannot keep out the flow of drugs into the island. 6. Are there any overtime requirements of the department/agency? Bargaining Unit (BU) employees from the State of Hawaii Organization of Police Officers (SHOPO), the Hawaii Governmental Employees Association (HGEA), and the United Response to Salary Commission Page 4 Public Workers (UPW) are entitled to overtime pay of at least one and a half times their normal hourly wage (not including hazard pay and hourly pay differentials) for any hours worked beyond their scheduled work period. Because of the extremely unpredictable nature of police work as well as the pivotal role department employees regularly play in the event of natural disasters and other unplanned events, overtime is unpredictable and unavoidable. During the most recent CFY, the department paid out over$8 million on overtime compensation. Hawaii Revised Statutes Chapter 89C requires excluded managerial ('EMs') employees (i.e., Captains [EM-03], Majors [EM-05], Assistant Chiefs [EM-07]) receive benefits at least equivalent to the bargaining unit employees they supervise. EMs are also entitled to With-In Range Progression (WIRP) and across the board pay increases consistent with BU employees. For reference, the actual range of current base pay (not including overtime, stand-by pay, or other fringe rates) for HPD's EM employees for the current and upcoming County Fiscal Year is reflected in the table below. Rank EM Rating CFY 2023-24 CFY 2024-25 Captain EM-03 $135,403 - $152,868 $144,753 - $160,512 Major EM-05 $156,608 -$163,299 $167,323 - $174,348 Assistant Chief EM-07 $182,712 $191,844 In addition, as a result, as civil service employees, HPD's EMs are entitled to (and routinely earn) additional financial benefits including overtime for hours worked in excess of 40 per week, and standby pay for periods during which they are required to remain on- call. While it is not expected that the Police Chief or Deputy Police Chief would encounter a situation where overtime would be earned, the nature of their position as public figures, coupled with extremely unpredictable nature of police work could necessitate it. For instance, if a major natural disaster, large-scale planned protest or other event, police- involved shooting, or mass casualty event requiring the Police Chief or Deputy Police Chief's response were to occur on a weekend or holiday, the public's expectation of prolonged situational control and immediate announcements to ensure public safety could be required. 7. What is your recommended salary adjustment and the rationale for these adjustments? On behalf of the Hawaii County Police Commission, we are writing to support a salary increase for the Hawaii County Police Chief and Deputy Police Chief, whose salaries were last amended on January 1, 2018. The Police Chiefs current annual salary is $153,270 and the Deputy Police Chief's annual salary is $145,968. We recommend the Chiefs salary be increased to $191,413 and the Deputy Chiefs salary to $182,712, with a 5% increase in two years and another 5% increase two years thereafter. Response to Salary Commission Page 5 This suggested increase is consistent with the changes in the Consumer Price Index for the period and is calculated by using the Bureau of Labor Statistics CPI Calculator showing the equivalency of purchasing power of capital from a know period to the present. Effective July 1, 2022, subordinate Excluded Management (EM) personnel received an increase in their salaries, with two future 5% increases scheduled for July 2023 and 2024.The salary for each EM personnel varies based on their hire date as a sworn employee, as well as appointment date into the EM series, and will remain this way until they reach the maximum allowable salary. Unlike EMs, the Police Chief and Deputy Chief are not entitled to overtime, The Police Commission respectfully requests fairness when compensating the two highest-ranking positions in the department and kindly request your consideration and support and look forward to your favorable response. Submitted on Behalf of the Police Commission of the Island of Hawaii Sincerely, Rick Robinson Chairman Yamada, Glynis From: df bb iiiii=1111111ft HUMAN RESOURCES Sent: Monday,August 7, 2023 3:01 PM To: Yamada,Glynis AUG 0 7 2023 Subject: Re: FW: Hawaii Executive Salary Worksheet RECEIVD*, Glynis, (� Commissioner Greenbaum did an excellent job of creating the spreadsheets with a lot of good information. Many thanks. I am suggesting that we look at this a little different. To be fair and equitable and apolitical we need to look at this in an objective way. On the salary side there are three different columns that I suggest be created so we have a true picture of what's going on. Commissioner Greenbaum is correct that with the inflation rate of 22.44 percent the value in terms of purchasing power of a salary of$100,000 and 2018 is worth$77,540 in 2023.So,a non-unit employee who was making$100,000 in 2018 is as of now down to 77,540; if we did absolutely nothing. Also,the same employee,if he is given an 18%flat rate increase,would be making$118,000 in nominal compensation. If the same employee was given 4%increases for the first three years and 3%increases for the last two years for a total of 18%,that employee will be making$119,336.This is the column that I am referring to as the cost of living adjustment. The second column should be that of the step, longevity,or performance based increase which most unit employees automatically receive as an increment yearly.This column will enable the managerial employees to receive an equitable salary. Let us assume that annual step increase is$1,500 a year. If this amount is added to the annual salary in a cumulative fashion the same 100,000 a year employee will be making$120,836. I like to recommend that this be the second column. The third column should be that of parity adjustment where the position is adjusted in terms of compensation based on objective criteria of the population they serve,the budget that they supervise,the number of employees in their division or department and also a comparative index of what other counties of similar size are paying their managerial staff. I recommended this column be used to adjust the base salary of a position and then the other two columns would be added to it so a fair, equitable and objective compensation system is established. I would be more than happy to provide the human resources department with the formulas and layout to calculate the final recommended compensation.Again,these are my individual thoughts and hopefully the commissioners will take the time to consider it. One thing that has bothered me, in this process of waiting five years for a salary adjustment, is that we may have lost very good employees or forgone the opportunity of hiring excellent ones. I see no reason that this commission could not meet annually and determine the cost of living and the parity adjustment amounts so the managers do not wait 5 years to receive a fair compensation. I believe it would be only just to convene the commission annually to adjust the base salary,the step or performance component,the cost of living adjustment and make any changes on the basis of parity that it sees fit. It doesn't have to be this complicated.Once a recommendation is formulated by the commission, hearings could be held so the public and other interested parties have an opportunity to air their opinions or comments. Henceforth the process could be completed according to the requirements of open public meetings and fairness to people who work at the county.This would be the apolitical component of the process we are charged to co t� SALARY COMMIS uN t COUNTY OF HAWAII Comm.No. 23-13.01 Date P/September 7, 2023 ATT. E I thank you for your attention. Dawood Farahi On Mon,Aug 7, 2023,8:01 AM Yamada,Glynis<Glynis.Yamada@hawaiicounty.gov>wrote: Hi, Danny and Cody, As requested,this information is bcc'd to all Commissioners. Aloha,Commissioners, As discussed at the Salary Commission meeting held on August 4,Commissioner Greenbaum prepared various documents for the Commission's review(18%increase,inflation,and population considerations). For your information, Commissioner Greenbaum transmitted the information that afternoon, prior to close of business c3}. Thanks! Glynis 2