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HomeMy WebLinkAbout2017-12-21 Salary Commision MinutesPage 1 TRANSCRIPT OF PROCEEDINGS SALARY COMMISSION MEETING Held at the Hawaii County Building, Puna Conference Room, 25 Aupuni Street, Hilo, Hawaii, 96720, commencing at 10:00 a.m., on December 21, 2017. REPORTED BY: TERI HOSKINS, CSR #452 ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 1 CHAIRMAN: 2 HUGH Y. ONO, P. E. 3 VICE -CHAIR: 4 FLORENCE K. IKEDA 5 6 BOARD MEMBERS: 7 THOMAS E. FRATINARDO 8 GEORGE W. CAMPBELL 9 JAMES W. HIGGINS 10 MILTON PAVAO, P. E. 11 HAROLD D. DOW 12 NELSON H. HARANO 13 14 DEPUTY CORPORATION COUNSEL: 15 AMY SELF, ESQ. 16 17 HUMAN RESOURCES: 18 WILLIAM V. BRILHANTE, 19 EX -OFFICIO MEMBER 20 ALSO PRESENT: 21 JENNY SAKAMOTO 22 MICHELE LAMKIN 23 GLYNIS YAMADA 24 25 ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 2 Page 3 1 CHR. ONO: Okay, call the meeting to 2 order. Call the meeting to order. 3 Why don't we -- well, first of all, I want to 4 start by saying Merry Christmas to everybody. 'Tis the 5 season to be jolly. 6 And why don't we first start by doing roll 7 call. And we can start with you, Thomas. 8 MR. FRATINARDO: Thomas Fratinardo present. 9 MR. DOW: Harold Dow present. 10 MS. IKEDA: Florence Ikeda present. 11 CHR. ONO: Hugh Ono. I think I'm 12 present. 13 MR. PAVAO: Milton Pavao here, I think. 14 MR. HIGGINS: Jim Higgins present. 15 MR. CAMPBELL: George Campbell present. 16 CHR. ONO: Okay. Amy, you can -- 17 MS. SELF: Amy Self, Deputy Corporation 18 Counsel. 19 MR. BRILHANTE: William Brilhante, acting HR 20 Director. 21 CHR. ONO: Okay. Yeah, good morning 22 everybody. 'Tis the season to be jolly. This is 23 probably -- hopefully -- going to be the last meeting 24 of the year. Because of Sunshine Law, we can't have 25 another one; announcements would never make it. But in ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 4 1 any case, we have a few testimonies this morning. 2 Nelson Harano is likely on his way, but when 3 he gets here, he gets here. 4 Statements from the public. Okay, it would 5 appear that we have two requests to speak, so before we 6 start, any of the commissioners have any questions at 7 all? 8 Who's that? Mayor. Merry Christmas from 9 the commission. 10 MR. KIM: Thank you, Merry Christmas to 11 everybody for serving. 12 CHR. ONO: Thanks for coming, Mayor. 13 MR. KIM: You bet. 14 CHR. ONO: Would you like to be taken out 15 of order? 16 MR. KIM: Whatever suits the council (sic). 17 CHR. ONO: Well, you know, it's your 18 schedule. 19 MR. KIM: Suits me really good. 20 CHR. ONO: We can take him out of order, 21 can't we? 22 MS. SELF: Sure. 23 CHR. ONO: Would you like to? 24 MR. KIM: Yes, Sir. 25 CHR. ONO: We can do it now, Harry. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 5 1 MR. KIM: Thank you very much. 2 CHR. ONO: He's the mayor. 3 MR. KIM: First of all, thank you all 4 for -- I know we pay you a lot, cup of coffee a day. 5 Pay for that. ONO: No, I haven't. 6 MR. HIGGINS: Thank you, Mayor. 7 MR. KIM: Can you hear me okay? Okay, 8 thank you. But, anyway, I'm just going to say what I 9 CHR. ONO: Audio okay? 10 MR. KIM: Every time I look at you, Hugh, I 11 remind myself how old I am. I'm just going -- 12 CHR. ONO: Does he have to press his 13 button? 14 MS. SELF: It's on. 15 MR. KIM: It's on? 16 CHR. ONO: Can we turn it off? 17 MR. KIM: You haven't changed. 18 CHR. ONO: No, I haven't. 19 MR. KIM: I thought age would make you 20 better. 21 But, anyway, I'm just going to say what I 22 feel about this. 23 CHR. ONO: Please do. 24 MR. KIM: I think some of you know that -- 25 (mic. feedback.) ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 6 1 Sorry. 2 MS. SELF: Wasn't meant to be. 3 MR. KIM: Are these all hints for me to get 4 out of here? 5 MR. CALLAHAN: And Kim has spoken. 6 MR. KIM: When I took this job, again, 7 December 5th, 2017, the budget crisis was well-known. 8 The only thing I did not know, obviously, from the 9 outside in is the details of it as, you know, you guys 10 experienced now. The only way you are going to know it 11 is to be there and look at all the details you need to 12 know. And it's common knowledge now, obviously, that 13 we had some bills to pay. 14 And, as time went on, in a very short time, 15 with the Finance Department keeping -- trying to get 16 information to me as best as I could, the joke was that 17 at first it was only $5 million short for this fiscal 18 year as of June 30th; then it was $10 million; and then 19 it was 15, and it was 20. And, after a while, I told 20 Diane, "I don't want to see you in the office anymore." 21 But that was the reality. And when that information 22 was received, it does not take any high math to realize 23 your anticipated revenues was just not going to be 24 enough to near meet your minimum needs, and the 25 ugliness of tax raises or cuts. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 7 1 I ask you to trust and ask any department of 2 three reviews of cut -- what you had to cut or could 3 cut, until it comes to well, are you going to cut 4 personnel? So, I think almost all contracts were cut. 5 Bill is up there. He was directly involved in the 6 instructions from the mayor's office. 7 I had the unpleasant -- for those of you -- 8 not unpleasant, unpleasant, but it's not very 9 comfortable sometimes to notify all unions, because all 10 four unions was going under their collective bargaining 11 at that time. Another negative of timing. Anyway, I 12 think all four unions were notified that the County of 13 Hawaii administration would not support one single 14 percent raise. I made a crack one time in the guys -- 15 to the police union, because it was a conference call, 16 and I said, "I retract no raise. I'm asking for minus 17 2 percent," just to impact them very serious that I 18 would not support any raise of the four unions, the 19 police, fire, HGEA, and UPW. And it was done very 20 early of this year. That's how serious I knew it was. 21 And so, it came to the vote element. It's 22 well-known by them, because I told them personally we 23 will not reverse that support. And, as you know, the 24 collective bargaining system is simple: Each county 25 has one vote; the mayor -- governor has four votes, so ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 1 all you need to have is one vote and it's in. I know 2 that. But it's just to make a point and stick to that 3 point. 4 And, on this, I do not blame anyone in the 5 County -- I'm talking about citizens -- of anger, 6 frustration, to read the higher-ups, so to speak, to 7 get the kind of raise you propose. It matters not who 8 is responsible. Some thinks it's the administration 9 that does this. And I don't blame them for thinking 10 the mayor is responsible for this. But as you know, we 11 stay out of this. It's the first time I've talked to 12 any of you -- members of the commission about this. 13 You know, I thought about what can I come 14 here and say that is meaningful? But the more you 15 inquire about it -- and I'll pick on one, an easy 16 one -- for a long time, I thought of the great 17 inequality of money. I wish I had a magic wand to say, 18 "I'll give these people a raise." And, to me, the ones 19 that need the raise most are those on the lower scale. 20 This morning we had a meeting with regards to 21 what shall our policy be in regards to what Human 22 Resources to make things fair. And Bill was in there, 23 and I told him the same thing, you know. "How much 24 does the low man on the totem pole get paid?" And his 25 answer to me was about 18,000. I wish I had a magic ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 9 1 wand to say, "This is where the money should go," but I 2 don't. I have no authority on my pay or anybody's pay. 3 It is the collective bargaining system and what you do. 4 So with all that, from the unfairness, you 5 ask questions when was -- of the attorneys who -- if 6 any attorneys up here -- Bill, I know you're an 7 attorney by education -- to do something that I 8 consider very important for all the people of this 9 island, of the Corporation Counsel, to make sure we 10 have wise people up there, good people up there, and 11 hopefully some of them to make this a career, a 12 government attorney as a career, because it takes time 13 to learn of all the things you need to learn. And to 14 learn that those that still serve and left, some of 15 them we did not give them a $1 raise for ten years, I 16 mean, how many of us would have tolerated that? And 17 this is why initially what I was going to come and talk 18 to you about changes as the more and more you think 19 about it, the consequences of what you say, and ask of 20 you to consider, who are just volunteers. 21 I know we've lost some good attorneys. And 22 those of you who have been in County government, you 23 know it seems easy to find good people of expertise and 24 management skills on top of that expertise to take the 25 County job. It is not a 40 -hour -a -week job. I want ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 10 1 the attorneys to get the pay raise. I was going to 2 tell you to -- is there any way you could consider 3 postponing the raise until July 1st fiscal year? 4 Because that's how we make our budget. And so, this 5 money that I must find to pay for this raise comes from 6 that approved budget. That means it comes from 7 somewhere else. That's why I wanted to make that 8 recommendation. The other thing I was thinking about 9 telling you was can we possibly prorate it? 10 And the truth, after thinking of all that, 11 what have I resolved? Almost nothing. I do believe 12 that the inequity that you are trying to resolve is 13 real. I believe that the major problem of all of that 14 is the collective bargaining system, which I have no 15 control or influence under. And neither do you. 16 You're just trying to make the thing fair. So, what am 17 I telling you? Nothing you don't already know. Maybe 18 trying to make you take the blame instead of me. I 19 thank you for your work. I know that I wish I had the 20 magic wand to make life better for everybody. So do 21 you, but you don't. 22 I will grade this crisis today as the 23 inequity of the distribution of funds for people in 24 this world, this country, and this island. And I thank 25 you for your work. I do believe that the principles of ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 18 CHR. ONO: Yeah, we're going to do 19 something with age for sure. 20 Any questions of the mayor at all? Comments? 21 MR. FRATINARDO: I do. I do. Tom 22 Fratinardo. Sorry, Tom Fratinardo. 23 And I look at the collective bargaining, and 24 I look at the highest-paid middle management personnel 25 in -- managers in collective bargaining. And I think ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 11 1 what you are trying to do, equity, the work is a good 2 work. I'm just trying to be crybaby to you on how 3 difficult it is to know what to say to you and fix the 4 problem, but postponing it maybe until July 1st, 5 postpone the fact that that money needs to be found. 6 So it's all I've been -- my recommendations 7 will do. Doesn't solve the problem. I think the 8 problem is the collective bargaining system that 9 somewhere we must address so we don't find ourselves in 10 this kind of thing that is a good guy/bad guy. 11 So I know I said nothing but, I believe, what 12 I felt inside, so thank you very much for this, and 13 thank you for your work, and happy holidays to you. 14 CHR. ONO: Thank you, Mayor. 15 MR. HIGGINS: Yeah. 16 MR. KIM: And I do hope you get better with 17 age. 18 CHR. ONO: Yeah, we're going to do 19 something with age for sure. 20 Any questions of the mayor at all? Comments? 21 MR. FRATINARDO: I do. I do. Tom 22 Fratinardo. Sorry, Tom Fratinardo. 23 And I look at the collective bargaining, and 24 I look at the highest-paid middle management personnel 25 in -- managers in collective bargaining. And I think ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 12 if -- as a salary commission, let's say, the police chief's pay is $130,000 a year, but that -- let's say the assistant chief that stays in that position -- and they don't have to retire at 32 years. That's where they max out. They don't have to retire at 32 years. He sticks around for maybe ten more years. So, right now, they might be making in the 140's, mid 140's. At what point will that person be making in the low 200's with the collective bargaining? So, for me, how do we -- what I want to see achieved is balance. So, how do we -- how do we find balance amongst these positions? MR. KIM: Boy, I wish I had an answer for you. A4r TT- rr- A7 TTRT-) TT T TR. S. Yeah. I really do. MR. CAMPBELL: Yeah. MR. KIM: On that. Balance based on what? It gets so complex. And I'm not going to pretend. I don't have the answer for that. MR. HIGGINS: Mr. Mayor, thank you for coming. I wish you had spoken to us before, you know, two or three or four meetings ago, because I think it's very valuable input. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 13 1 Looking back, one of the things that you have 2 succinctly talked about was affordability of this whole 3 damn thing. And in our previous meetings, that subject 4 basically never came up. We never really hit on that, 5 on the affordability. We were basically led -- 6 honestly believe that the affordability question is not 7 our problem, that this is being determined by 8 collective bargaining and blah, blah, blah. 9 So that's where I'm having a hard time with 10 this, because I'm a fiscal hawk. I'm in your camp on 11 that. And the only thing I think what we can possibly 12 try to do is also determine what is the priority of 13 importance of jobs in the County? In other words, one 14 of the job descriptions is going to get a major $40,000 15 increase. And we were trying to be fair. Again, that 16 word comes up. So, the problem is, is that worth the 17 fire chief, that job? And we were trying to stay away 18 from us trying to determine, well, who is more 19 important to running this government? So, maybe we need 20 some help on that and whether that's going to really 21 raise eyebrows and people are going to scream because 22 somebody is deemed more important than others. 23 So, anyway, I'm just rambling here. I just 24 wish you had come and talked to us more and so we would 25 have had more of an impact on the affordability of all ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 14 1 of this. 2 MR. KIM: First of all, I apologize for 3 that, not coming. It's a dilemma kind of thing. I 4 promise all commissioners -- as you know, commissioners 5 do minimize the mayor's relationship with the 6 commission to do your work independent; and if I had 7 anything to say that was critical, I would come forth. 8 And I -- I thought it would be more detrimental to come 9 forth then. And I think I was wrong. I know I was 10 wrong. 11 Let's take the raise of one of the positions. 12 Huge raise. As, you know, you thinking, jeez, if we 13 had spread out the raise every year for the past ten 14 years, we wouldn't have this problem today. So you do 15 something that, you know, is very unpopular, and I 16 think every one of you knows that, the consequence of 17 that kind of raise, because that's what people will 18 see, this one lump sum, and not what you are trying to 19 do or what you have talked about, a balance, to make it 20 fair. And that's all you're trying to do. I do know 21 this as an administrator. 22 This is my third time around, believe it or 23 not, of being stupid enough to come back three times. 24 But finding good people -- I don't know most of you 25 personally but, you know, if you all are in management, ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 15 1 finding good people to do this job is not easy. It is 2 the easiest thing in the world as mayor to find people 3 to give them a job. Easiest thing in the world. But 4 there's a difference between that and finding good 5 people to do a job. 6 I think almost every position this term as 7 well as other, people you look at -- and I won't expose 8 any names, but have turned me down, of not being able 9 to leave their present job because of a tremendous pay 10 cut or place of trying to build a business. And I know 11 a lot of the public will think as I say this, "That's 12 bunk," and I don't blame them, because they're the ones 13 that are making 15-, 20-, 30- or less thousand dollars 14 a year, and this looks like wow. But I ask you to 15 trust me on this. I had a hard time finding people to 16 fill jobs. You know that, Mr. Hugh Ono. 17 The requirements of Departments of Public 18 Works, DEM, had minimum requirements of engineer, 19 minimum requirements of administration, of attorneys. 20 Trying to get an attorney who is private practice and 21 tell them, "I'm going to give you 90,000 a year," I 22 think they would choke back laughter if you tell them 23 that. So, you know, pay is important because of 24 lifestyle, survival, providing for. And I know that. 25 I wish I had a simple answer. I don't. I do ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 16 1 know one of the causes that we must address is 2 collective bargaining. It is not about collective 3 bargaining I'm saying I'm against. I'm not against 4 collective bargaining. I said we have to look at all 5 the issues of how it's done, because it is of them 6 addressing a percentage of employees for raises but not 7 the EMs. And so when this goes up and this stays flat, 8 we are in the position you find yourself in, because 9 it's your job to address those people. And because no 10 raises are given for ten years, you want to be fair; 11 you want to balance. You're going to jump it one time. 12 Obviously, everybody is going to think, "Whoa, what the 13 heck are they doing?" The worst part about what I'm 14 saying is I know all this, but I don't know what the 15 answer is. 16 And I'll conclude this with -- I'm not 17 helping anybody by this -- I wish you a Merry 18 Christmas. 19 CHR. ONO: Mayor, just one comment from 20 me. This commission recognized pretty quickly that we 21 were in a serious dilemma here, you know. We're all 22 aware of what the financial challenges are. We're also 23 aware of a situation that has preexisted for much too 24 long. So the challenge is to find that point of 25 balance where we can make it pono, so to speak. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 17 1 In doing so, we also recognize that the first 2 attention needs to be given to the salary inversions 3 which are really, really significant for certain 4 positions. Then the second part, this commission is 5 going to take a look at what is going to happen in the 6 future, because this can't be going on every time 7 there's a change in collective bargaining to -- you 8 know, for us -- if we do a conscientious job on that 9 basis, we'll be meeting every single month for the rest 10 of, you know, your term, not to mention future terms. 11 And so, I think that we're very aware of -- 12 and, you know, thank you for coming and sharing and 13 testifying with us today. We appreciate it. And Merry 14 Christmas to you, too. 15 MR. KIM: I would like to say this. I 16 think I have a beautiful team working. And, Bill, if 17 you don't mind -- I'm meeting with Bill on some other 18 subjects, and we've got to project what we're all here 19 for, just doing your job. In this past term -- I mean, 20 this term, there were more than one person that I 21 approached that said "no." There were a couple of them 22 that said "yes," knowing they would take approximately a 23 $20,000 cut in pay. The public should know this. 24 There is a difference when we're giving people a job to 25 take a job and a difference of giving and asking people ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 18 1 to serve this County to do a job. Not one of them that 2 I know bargained with me of pay. That's set aside, 3 black and white. So you appeal to them of the 4 importance of the job, just like we appeal to you to 5 serve on this commission for a coffee, a meeting, if 6 that. 7 MR. FRATINARDO: Mr. Ono, may I say one 8 thing? 9 CHR. ONO: Go ahead. 10 MR. FRATINARDO: We received testimony from 11 the prosecuting attorney's office, and the testimony we 12 got from Ricky Roy Damerville impacted me. So I just 13 wanted my decision -- because I can't meet with you and 14 tell you what I'm using as far as making a decision. 15 And, for him, it's about continuity. What's happening 16 with the prosecuting attorney's office is they're 17 getting deputies in, young deputies fresh out of 18 school, training them, and then within three or four 19 years of being in that position, they're flying the 20 coop to get paid better wage or salaries elsewhere. So, 21 it's about a continuity situation for me. 22 And being a former police officer having to 23 train other officers and actually seeing that, back in 24 the '90s, when police departments were coming into our 25 jurisdiction to recruit from Hawaii County Police ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 19 1 Department, it messes things up. So, we lose that 2 continuity, we lose that expertise, and it affects our 3 public safety in the long run, because if you don't 4 have deputy prosecutors that have trial experience, it 5 affects the way the judicial process works. That was 6 one of my reasons for my decisions with the prosecuting 7 attorney's office. 8 MR. KIM: I'll say this maybe out of -- not 9 a place for it, but I think it ties in with what you're 10 saying. 11 I consider the job of us in government to do 12 everything we can to raise the salaries of the rest of 13 the community. I said that first publicly in 1981, 14 with the biggest danger to our community is the gap 15 between the haves and the have-nots. And all of us in 16 any kind of position, I welcome you to talk to like the 17 carpenters union, that I have worked with and continue 18 to work with, to do that for all people. And in this 19 job, I consider it part of my job to do everything we 20 can to address in any way we can the salaries of others 21 and opportunities of others. 22 So, again, thank you very much for listening 23 to me, and most of all thank you for doing what you do. 24 CHR. ONO: Thank you, Mayor. 25 MR. HIGGINS: Thank you. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 20 1 MR. CAMPBELL: Thank you. 2 CHR. ONO: Okay, thank you very much, 3 Mayor. 4 MR. KIM: Thank you. 5 CHR. ONO: We have two statements from 6 the public this morning, and we're going to take them 7 in the order that they signed. I'm going to -- we have 8 also a very comprehensive agenda today, so I'm going to 9 ask that these testifiers try and limit their testimony 10 to four minutes. 11 So, with that said -- well, up to this point, 12 any questions or comments from any of the 13 commissioners? 14 Oh, and, Nelson, welcome. We got you recorded 15 as present. Okay? 16 MR. HARANO: Thank you. 17 CHR. ONO: Any questions? 18 If not, I'd like to call on John Callahan. 19 John, please. 20 MR. CALLAHAN: Good morning, ladies and 21 gentlemen. 22 CHR. ONO: Good morning. 23 MR. CALLAHAN: I'm just a humble gardener, 24 and I'm not going to say I know everything about 25 government. I don't. But the reasons why I'm strongly ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 21 1 objecting to any kind of raises are these. We seem to 2 forget our Constitution of the United States. "We, the 3 people of the United States" are the government, not 4 the government itself. And the government itself, like 5 the commissioner and all branches of government, are 6 our servants, not to be abused or misused or what have 7 you, but they are servants who want to work and feel 8 they've been gifted to do this job, need to humble 9 their hearts. We're tired of the constant "Give me, 10 give me, give me." There's a proverb in the Bible that 11 says that's one of the detestable things of the Bible, 12 and they're for very good reasons. 13 The reason why that is so -- I'm going to try 14 to be as quickly as I can, but forgive me if I linger a 15 little bit -- is that history teaches loud and clear 16 the horrible costs and the abominable costs of war and 17 civil unrest because government is saying "Give me, 18 give me, give me, or else." We need to stop doing that 19 stuff. We need to start loving each other as the 20 Torah, the Bible, says. We need to learn how to live 21 within our means and help others, bring others up, 22 because if we can do that, we can get rid of the civil 23 unrest, or the potential for it, we can get rid of 24 animosities between government, we can work together 25 and form a more stable government where everybody ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 22 1 benefits, because there are people who are so burdened, 2 they got two, three jobs, and they're barely making it. 3 Barely making it. And we need to stop doing this. 4 You know, they live -- for myself, I just did 5 a quick estimate. I earn gross under $10,000 a year. 6 Gross. And I got to consider all my expenses. So 7 that's just one person, so... 8 So, also, we need to realize there's a saying, 9 "Ua mau ke ea o ka aina i ka pono." I may not 10 pronounce the Hawaiian quite right, but basically it 11 means the land is perpetuated in righteousness. 12 Now, let's get to some solutions. Okay? Just 13 an example: Those who live in Puna have to buck that 14 stupid construction traffic all the time because they 15 don't know what the hell they're doing, the 16 construction companies. We need to hire companies from 17 the mainland who know how to do roadwork and get it 18 done promptly and quickly. And that's -- and that's 19 why we have the problems we have. That's an example of 20 government waste, you know. We've got to stop the 21 government waste, because that's what it is. 22 And I'm just double-checking to make sure 23 I've got everything I need to express. 24 I will agree with Kim in some respects, that 25 he's a -- you know, that he's right on. You know, ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 23 1 there are people who are -- they're just barely getting 2 by. And we need to stop this, because if we -- if we 3 don't, mark my words -- and the Bible will back me 4 up -- if we don't stop asking for wage increases, if we 5 don't stop doing this stuff and granting it, we will -- 6 beyond a shadow of a doubt, we will have civil unrest 7 on this island. And that's wrong. Because even when 8 it's all said and done, people in wars, who have fought 9 in all the different wars, they still suffer from years 10 ago from Vietnam, from the Korean War. There's all 11 these extra expenses that people go through because 12 they've seen things they should not have had to have 13 seen. 14 So, I humbly ask please, please, 15 Commissioners, be humble enough to say, "No," no 16 more -- no more pay raises, especially to higher-ups 17 and about unions. 18 I'm sorry. Forgive me if I'm a little 19 longer, because I've got an appointment. But the thing 20 is this: Unions are great, but they are misusing the 21 people by having a "Give me, give me" attitude. So I 22 would say get rid of the unions and start going back to 23 honesty and integrity, what is right. 24 Thank you so much. Mele Kalikimaka, A Hauoli 25 Makahiki Hou, and Happy Hanukkah. Thanks. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 24 1 CHR. ONO: Thank you very much, John. 2 MR. FRATINARDO: I had a question of him. 3 MR. CALLAHAN: Yeah. 4 MR. FRATINARDO: Thanks, John. I -- 5 MR. CALLAHAN: Oh, I thought -- 6 MR. FRATINARDO: I have a question for you. 7 MR. CALLAHAN: Yes. 8 MR. FRATINARDO: Please sit down. Thank you, 9 John. 10 I think it's our job to inform the community 11 of how the charter commission came into effect. The 12 charter commission came into effect -- when you talk 13 about "the people, the people," this was put on as a 14 measure on a ballot years and years and years ago, to 15 take the power out of the administration's hands so it 16 would appear for -- that this is not a -- so it's a 17 nonpartisan sort of decision, to give these raises. So, 18 the people of Hawaii Island voted to give this 19 authority to the Charter Commission. And, if people 20 read what the Charter says, it said we shall make these 21 raises. We shall make it. 22 So, what I would like to say is if the people 23 want to make a change, that's up to the people to put 24 it back on the ballot if they don't want us doing our 25 job. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 25 1 And I thank you for your testimony. 2 MR. CALLAHAN: Hey, thank you. Like I said, 3 I don't know everything. Thanks. 4 CHR. ONO: Okay. The next testifier we 5 have are dual testifiers: Mr. William Takaba and 6 Mr. Sidney Fuke. 7 MR. TAKABA: Good morning. 8 CHR. ONO: Good morning. 9 MR. TAKABA: Chair Ono, and Members of the 10 County Salary Commission, I'm Bill Takaba, former 11 Finance Director, Managing Director, and current Chair 12 of the Liquor Commission. With me is Sidney Fuke, 13 former Planning Director and Chair of the Liquor 14 Control Adjudication Board. 15 Thank you all for serving on this very 16 important Salary Commission -- it is very important -- 17 and for taking on the task of ensuring that elected 18 officials and top administrators in Hawaii County are 19 fairly compensated. 20 And the key is, you know, it has to be where 21 salaries and benefits have a reasonable relationship to 22 the public and private sectors. And when I talk about 23 public sectors, it's not just this island, but we have 24 to look at it statewide. If you have similar positions 25 statewide, you have to consider, I believe, positions ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 26 1 in other jurisdictions as well. 2 We are here this morning as private 3 individuals, although we serve on the board, to provide 4 testimony on the salary of the County Liquor Control 5 director. The Liquor Control director heads the 6 department that is responsible for the regulation and 7 control of the importation, manufacture, sale, and 8 service of alcoholic beverages through the enforcement 9 of liquor laws. The department derives its funds 10 through its own sources and is responsible for not only 11 the collection and budgeting of these funds, but also 12 it uses the funds for the operations of the department, 13 which includes liquor enforcement inspectors. Its 14 budget is about $2 million. 15 As members of the Liquor Commission and 16 Liquor Control Adjudication Board for many years, we 17 know that the best -qualified directors must have a 18 clear understanding of how laws and rules are 19 administered and can make sound decisions based on this 20 understanding. The director must be able to work with 21 its 400 licensees and the general public to make sure 22 that laws are fairly and efficiently applied. Although 23 this is not a requirement, five of the eight top liquor 24 control administrators in the State have law degrees, 25 including Hawaii County's director, Gerald Takase, and ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 27 1 his administrative officer, Brandon Gonzalez. This 2 pretty much speaks to the complexity of the work of the 3 Liquor Control directors statewide. 4 The current salary of the Liquor Control 5 director in Hawaii County is $99,000 per year, for 6 example, you know, far lower than his counterparts in 7 other jurisdictions. For example, the Honolulu Liquor 8 Commission -- Liquor Control administrator makes 9 $153,000; Maui is $132,000; and Kauai is $109,000. And 10 from what I understand, Kauai is reevaluating the pay 11 of the Kaua'i Liquor Control director, so it may very 12 well go up. 13 The director in Hawaii County earns $10,000 14 per year less than his counterpart on Kauai, even 15 though his service area is seven times larger, his 16 budget is two times bigger, and the number of licensees 17 that he serves and regulates is twice as large. We 18 wholeheartedly subscribe to the idea that bosses should 19 not be paid less than their subordinates; however, 20 consideration should be given not only how much the 21 highest-paid employee in the department is making, but 22 also how much an employee of the department can 23 potentially earn. 24 Is that my four minutes? I hear -- can I, 25 you know, just -- ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 28 1 CHR. ONO: Yeah, you have a little bit 2 more to wrap up, so go ahead. 3 MR. TAKABA: Yeah, I'm just coming to the 4 conclusion. 5 CHR. ONO: Thank you. 6 MR. TAKABA: Okay, thanks. 7 In the case of Liquor Control, the department 8 administrative -- I mean Liquor director -- the 9 administrative officer, makes -- he's an EM -3, and he 10 can earn up to 127,000. Although he is not making that 11 now, you know, previous administrator was very close to 12 what the director was making, but, you know, a lot of 13 times it's time -- it's coincidence when the person 14 retires and when the next person comes in and how much 15 you pay the next guy. 16 So although, you know, it's good to look at 17 the salary of the highest-paid individual and make sure 18 that you go -- the director makes more than that, it's 19 equally important to see what the potential of the 20 department is, you know, what the highest-paid 21 administrator can make in the department that works 22 under you. And in this case, it's $127,000. So, we 23 should consider that. 24 But, you know, I would just like to wrap up 25 by saying that consideration should be given to the ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 29 1 complexity of the work that the director performs, how 2 the director's current salary compares to the salaries 3 of the directors in other jurisdictions, the amount the 4 highest-paid employee in the department can potentially 5 earn and, based on the above, select the salary that's 6 appropriate. 7 Finally, scheduling pay adjustments for 8 elected officials and top administration should be on 9 the same frequency as civil service employees to avoid 10 getting into similar pay inequities in the future. 11 And, you know, you are going back every year, and the 12 same thing is going to happen. When the public looks 13 at it, it's like, "Wow, these guys got a 10 percent 14 increase," but they never got raises for ten years, you 15 know. I mean, that's why it looks so terrible when 16 someone writes about it. Okay? 17 Anyway, that's all I -- I would just like to 18 thank you for the opportunity (SEE ATT. A). 19 CHR. ONO: Mr. Fuke, did you want to add 20 anything? 21 MR. FUKE: Sure. Good morning. 22 Just before coming over here, as Bill had 23 mentioned, I was Planning Director. And when I left in 24 December of 1984 and I had the -- I kept the pay stub, 25 and the pay stub was about like $43,000 and change. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 30 1 And so, to some extent, I can appreciate what the mayor 2 was saying, you know, in terms of, you know, the 3 escalating costs, because the proposed salary for the 4 same position that I had is roughly like about three 5 times over. 6 We're here like not testifying, you know, so 7 much about the ability to pay, but just looking at it 8 more from an equity standpoint. Although we're chairs 9 of our respective -- the Liquor Commission and the 10 Adjudication Board, you know, we're not here to speak 11 on their behalf; we are here as individuals. 12 I kind of provided you a written summary just 13 to help, perhaps, this Board to better see some of the 14 facts. One of them is like the budget and the number 15 of licensees of all four counties. Kaua'i County has a 16 million -dollar budget; they have 200 licensees. Hawaii 17 County, $2 million budget with 400 licensees; the 18 County of Maui has a $4 million budget and 400 19 licensees, same amount as Hawaii County. The City and 20 County of Honolulu has a $10 million budget with 2000 21 Licensees (SEE ATT. B). 22 So, in terms of the number of licensees, 23 Hawaii is comparable to Maui. The budget of Maui, 24 however, is larger, maybe due in part to their fees, 25 assessments, and higher operating costs, because they ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 31 1 have to service three islands. 2 Now, if you look at the roles and the 3 functions of the directors for all four counties, Kauai 4 and Honolulu counties have only one body, one 5 commission that issues licenses and adjudicates on all 6 violations. On Maui and Hawaii County, however, they 7 have two bodies. They have the adjudication -- they 8 have the Liquor Commission, which issues the license, 9 and the Adjudication Board to determine on violations 10 and penalties. 11 So, while it may seem more efficient and less 12 costly to have one body, the approach, as reflected in 13 the Charters of Maui and Hawaii County, we have two 14 bodies. In so doing, I guess the framers of our 15 Charter and ratified by its citizens believe that there 16 would be greater impartiality in dispensing justice 17 inasmuch as the Adjudication Board acts like an appeals 18 board or like your court. Relative to salary, the 19 point here is that like Maui County, Hawai'i's Liquor 20 director must administer two rather than only one 21 board. 22 In terms of the organizational set-up for all 23 four counties, Maui and Honolulu counties have a 24 director, and they also have a deputy director. Kauai 25 County, which is the smallest county, and Hawaii ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 32 1 counties do not have a deputy director. So Maui, with 2 its 400 licensees, has a deputy. Hawaii does not. 3 Almost all departments in Hawaii County, on the other 4 hand, have a deputy, including the Planning Department, 5 which administers a commission and an appeals board. 6 The absence of a deputy translates to greater burden on 7 the director. In terms of the salary, as Bill kind of 8 pointed out, Honolulu has -- the director has $153,000, 9 Maui 132K, Kauai 109K, and Hawaii County 99K. 10 So, in conclusion, given the above, from my 11 perspective, anyway, I think a reasonable salary, and 12 notwithstanding the ability to pay aspect, should be 13 more than Kauai, which is 109,000, and closer to Maui, 14 which is 132,000. However, you know, like -- given, 15 you know, what the preliminary action the commission 16 has taken in terms of the salary for the Planning 17 director, I believe like the most reasonable 18 compensation for the Liquor director's position should 19 really be comparable to the Planning director's 20 position. 21 Thank you very much. 22 CHR. ONO: Any questions? Mr. Pavao. 23 MR. PAVAO: It's not so much a question. I 24 think we all agree that raises are warranted; but as 25 you heard the mayor when he was here speaking, there is ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 33 1 a problem. And I totally agree there is a problem. 2 And I guess I'd just like to ask both of you, because 3 of your expertise, Bill with Finance and Sydney, you 4 have been around forever, how would you recommend 5 implementation of raises? Because as the mayor said, 6 it is a burden on the budget; but, really, that should 7 not deter us from giving raises, but there must be a 8 mechanism of some sort of balance where the raises can 9 be given maybe over a period of time or -- I would just 10 like to hear your recommendations or your thoughts on 11 how these considerable raises should be implemented. 12 MR. TAKABA: Okay, thank you. There was a 13 time that there were steps within the salary structure 14 for department heads. And through the course of time, 15 that was done away with, I think, you know. I don't 16 see it anymore. But it's been tried before. I think 17 if the Salary Commission would stick to a schedule, and 18 if the schedule is as frequent as civil service 19 employees get their raises, then I don't think we would 20 be in this situation. 21 And, you know, I really believe that the 22 evaluation should take place on a regular basis, you 23 know, and at least be in line -- be more up-to-date as 24 to how frequent, you know, the changes are made. If 25 it's done every five years, you know, then you get into ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 34 1 the same situation every time. 2 MR. PAVAO: What would you think of a 3 condition set by this commission such that, just off 4 the top of my head, the director should make, say, 5 5 percent more than the highest-paid employee and put a 6 condition on the raise, saying that whenever the union 7 agrees to wage increases, that 5 percent should 8 automatically kick in? I mean, I'm just using 5 9 percent. It could be anything. Would something like 10 that work? Then the commission would not have to be 11 meeting every time to set salaries. 12 MR. TAKABA: Yeah, I understand. There are a 13 couple things that I would like to point out. You 14 know, one is that in collective bargaining, you have 15 management and you have the employee, right? And if 16 you tie management in with an employee's salary, then 17 that might not be a good strategy or even -- I don't 18 know how legal that might be or whatever, you know. 19 And that's why they try to stay away from, you know, 20 timing a salary of an employee with the salary of a 21 department head. You have to separate management and 22 collective bargaining from the employees that are 23 receiving the raises. 24 The other thing is, yeah, you bring up good 25 points, you know. I think that's something that you ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 35 1 should consider, the fact that you do have some tie-in. 2 But, you know, as I mentioned in my testimony, a lot of 3 it depends on timing. If we -- if somebody, you know, 4 has a longevity, like they stay for -- like there are 5 many people in the County -- I mean, not many, but 6 there are some people in the County who have worked 7 over 40 years. And if you're in a department -- you're 8 a department head that has an employee that's been 9 there for 40 years, then, you know, that's something 10 that, you know, you're going to benefit from, whereas 11 another department who has, you know, retirements 12 frequently, then you'll never -- that department will 13 never have their employees up to the department. So, it 14 might be unfair in one department where employees don't 15 move up; they just retire. You have young employees or 16 older employees that don't retire. And if you tie that 17 into a department, then, again, you are depending on 18 timing and coincidence. But, you know, I mean, 19 somewhere along the line, there might be a way to make 20 that work, as long as it's fair to every other 21 department and uniform in the way you administer it. 22 MR. PAVAO: Well, unfortunately, the union 23 does not recognize length of service, just position, 24 right? 25 MR. TAKABA: Right. So... ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 36 1 MR. PAVAO: That doesn't work. 2 MR. FUKE: Yeah, I really don't have the 3 answer, but I think that, you know, largely it relates 4 to the fundability aspect, whether government can fund 5 the increases. Correct. So, if you have like 6 collective bargaining and there's a decision made to 7 accept whatever the raise -- you know, whatever the 8 increases are, then the respective counties have to 9 look at their budget and they're going to have to make 10 the adjustments to accommodate that, right, and then 11 they're going to decide on whether to accept -- to 12 ratify or not to ratify. The salaries on the cabinet 13 officers, however, they are totally divorced, so that's 14 why, as Mayor Kim kind of pointed out today, they 15 didn't anticipate this. 16 So to the extent that -- you know, I don't 17 know what the answer is, but I think that to the extent 18 that you can try to kind of integrate any collective 19 bargaining increases to, like, some consideration for 20 the cabinet officers appointed, you know, increases 21 too, then when you try to create your fundability, 22 whether the County is able to fund it or not, you will 23 now be able to have more comprehensive perspective of 24 it relative to -- well, I don't know whether it's legal 25 or not, but I'm looking at it purely from a fundability ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 37 1 standpoint. And I don't know whether it's legal or 2 not. 3 But the mayor, you know, brought up a pretty 4 interesting point about like, okay, maybe there's no 5 dispute in terms of what the equitable pay should be, 6 you know, given what's happened with the collective 7 bargaining situation, but they didn't address that in 8 their current budget, so he's suggesting that maybe you 9 can kind of like defer that until the next fiscal year, 10 you know? Maybe that's a consideration or maybe just 11 providing some incremental steps and maybe getting 12 the -- you know, the full pay out maybe when the new 13 fiscal year begins or something to that effect. 14 MR. TAKABA: The mayor also mentioned, you 15 know, where it's difficult to get employee -- 16 department heads, you know, to recruit department 17 heads, because -- you know, from within, because a lot 18 of times, people within make more than the department 19 head, so why should they move? But, you know, a lot of 20 that has to do with overtime, you know, so -- you know, 21 like police and fire, you know, there's a lot of 22 overtime in there. And I'm not sure if this commission 23 is looking at base pay, or are they including overtime 24 with that pay? It's just base pay, yeah. And I think 25 that's the way it should be. But, no matter what, it's ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Page 38 still going to be difficult to recruit people from within a lot of times, because if you're in an overtime situation, then, you know, it doesn't make sense for you to move -- MR. PAVAO: Yeah. MR. TAKABA: -- if you're looking at purely a cash -- CHR. ONO: You know what? In the interest of time, in managing this meeting, unless you have something really pertinent to say, I would like to go to next statement. Milton, do you have anything else? MR. PAVAO: No, that's okay. CHR. ONO: Have you folks covered it adequately? seconds. 25 Commission MR. FUKE: Thank you. CHR. ONO: Thank you, gentlemen. Next speaker is Councilwoman Susan Lee Loy. Susan, you're special; you only get 30 MS. LEE LOY: Oh, 30 seconds? CHR. ONO: No, four minutes. MS. LEE LOY: Thank you. Good morning, Chair, and Members of the I'm kind of nervous. Usually I'm on the ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 39 1 other side of this. I really appreciate, actually, 2 going after Bill Takaba and Sidney Fuke who have been 3 incredible mentors to me. 4 And as a freshman council member, you know, 5 we're dealing with a lot. But what I did hear the 6 commission talk about today was balance and looking for 7 some continuity to maintain some of the think tank and 8 some of the skill sets that are in these departments. 9 And I truly can appreciate, you know, some of the 10 technical expertise that goes into, you know, someone 11 from the Planning Department or someone, you know, at 12 Public Works, a chief engineer that there's a skill set 13 that they need to have to have those positions. 14 So, as I sat through a lot of the 15 conversation, you know, you guys have a tough task, but 16 rather than dwell right here, maybe if I could just 17 offer some suggestions which I hear coming up is 18 opportunities to better plan, you know, maybe a phased 19 approach with some of the salaries, or looking at 20 administrative rules or future rules or policies that 21 would maybe set some foundation so this body is not 22 having to play catch-up, you know. 23 You've heard testimony about it's been ten 24 years since some of these people have gotten raises; 25 and so it is a very bitter pill to try and swallow to ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 40 1 play catch-up. But if there's ways or opportunities 2 for this body to look at maybe setting some amounts for 3 the future, which in turn actually helps the council, 4 because we can begin to forecast a little better, you 5 know. 6 We just approved SHOPO's raises. You know, 7 we're looking at HGEA, fire. And, you know, Sidney 8 Fuke has been a great mentor, and he's been a planner, 9 and, you know, that kind of information actually helps 10 us; so when we start looking at a budget, we know what 11 we need to take into consideration. 12 One comment I did appreciate was the mayor's 13 consideration of maybe setting it after July 1, because 14 the budget has already been set; so we're going to have 15 to be figuring out how to move monies around to look at 16 paying for some of these raises. 17 I completely support the idea of, you know, 18 bringing equity with the pay inversion. And I also 19 appreciate -- I believe it's Mr. Ono -- he went through 20 a checklist of facts on how this body kind of came up 21 with these raises. It wasn't just, you know, pulled 22 out of the air; it was a very succinct process. So if 23 somehow we could get some of that into the policies and 24 then help us as a council get ready for whatever budget 25 increases we have to look at and then, you know, like ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 41 1 the mayor said, his administration. 2 So, those are my thoughts. I'm out of time. 3 But I'm a firm believer out of chaos comes 4 opportunities, and so just using this as a foundation 5 to look at opportunities for the future. Thank you. 6 CHR. ONO: Any questions of Councilwoman 7 Lee Loy? 8 MR. FRATINARDO: Question. Okay. So, when we 9 first met as a commission, we saw that one of the 10 priorities were to correct deficiencies. So that's one 11 of our priorities and one of the elements that we use 12 to make a decision. 13 So, in the past, I don't know how the previous 14 commissions came to whatever decision they made, 15 because I have no data, so I'm working off of a blank 16 sheet as well, as the rest of the commissioners. But 17 what I am looking at are -- and let's use an example as 18 the prosecuting attorney's office, Mitch Roth. He has 19 a large staff, and he's the lowest -paid prosecutor by 20 about $40,000, roughly, in the State. And he has not 21 only his department that he's managing; he also has his 22 family that he's managing. And there are opportunities 23 out there for him that are being presented. 24 So at what point do we as commissioners say, 25 "We need to make a decision right away so we don't ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 42 1 lose" -- like I said earlier -- continuity, because 2 people are bailing and jumping ship. At what point do 3 we say, "Hey, when is the right decision?" I'm looking 4 for balance. So when is the right time, right? And 5 people were talking about timing. Timing, right? So 6 this is not our only raise that we're going to give. 7 We're talking about a two -phased approach; so to go 8 back later and revisit it and see where we're going to 9 go with the structuring of the pay scale for the 10 appointed positions and the elected positions. 11 So, in your opinion, if you had knowledge that 12 people might want to leave -- we have this really 13 experienced body of people working in our County -- 14 what would -- how should we handle that, do you think? 15 MS. LEE LOY: Great question. 16 You know, I'm just going to rely on my own 17 experiences. I actually started here at the County 18 Council when I was 20 years old, and gained a lot of 19 knowledge, and then went over to the private sector and 20 got paid very, very well. And I share that story 21 because there's a personal decision that goes into 22 whether you want to stay and what the potential of your 23 job opportunities are or whether you want to make the 24 decision to go get more money. 25 I think if I had a crystal ball, I think that ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 43 1 a tiered or multi -pronged approach that sets a salary 2 and then incentivizes people to stay and, you know, 3 hone their skills, hone their technical training, 4 become more ingrained with that department I think is a 5 fair approach. But we also know there's a whole bunch 6 of other things that go into people staying employed, 7 you know. It's personalities in those departments. 8 It's a bunch of other personal factors. And I believe 9 this body is doing a wonderful job of at least creating 10 some framework so that anybody who is thinking about 11 coming on board or already on board and wants to stick 12 around, what that future might hold for them. 13 So I believe that multi -pronged, tiered 14 approach seems like a balanced way to move forward. 15 MR. FRATINARDO: Thank you. 16 CHR. ONO: Thank you very much, 17 Councilwoman. 18 Our last speaker is Mr. Saolegh [sic]. I 19 believe it's spelled S -a -o -l -e -g -h, as I read it here. 20 MR. SADEGH: S -a -d -e -g -h. 21 CHR. ONO: Okay. How do you pronounce 22 that, Sir? 23 MR. SADEGH: Sadegh. 24 CHR. ONO: Sadegh. 25 Mr. Sadegh, you're up. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 44 1 MR. SADEGH: Mr. Chairman, first of all, my 2 name is Abraham Sadegh, and I was born in Tehran, Iran 3 in 1940. I have -- nearly four decades of my adult 4 life has been in the United States. 5 I am the founder -- I was born in a Shiite 6 family, the shorter, or less, section -- lesser section 7 of the Islam. I found that the Universal realm of the 8 Lord Almighty that -- I just want to spend a moment 9 briefly mentioning what it is, because it has relevance 10 to everything else I'm going to say. 11 The essence of it is that believing in God is 12 optional. By saying that, I'm including the rest of 13 humanity. Believing in humanity is not. And that our 14 sole responsibility in this phase of our existence is 15 to transform this planet to the paradise for us as it 16 already is instinctively for all creatures on the web 17 of life. And also that we're all born citizens of this 18 planet. At birth we had no knowledge of anything about 19 our environment. And those are taken. Then we have to 20 provide an environment/create an environment for that 21 every child across this planet reaches its full 22 potential and that every human being has the right to 23 its fair share of the resources of this planet. If 24 (inaudible) was here, they say had 50 billion, I 25 would have given another 50 billion. But families do ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 45 1 not -- should not live in poverty. I experienced part 2 of Los Angeles for ten years. You cannot raise a child 3 that reaches its fullness potential. 4 Today regarding -- and I have a couple of 5 questions. First of all, you ladies and gentlemen are 6 elected to your position, right? 7 CHR. ONO: We are not. 8 MR. SADEGH: Appointed? 9 CHR. ONO: Yes, we are appointed. 10 MR. SADEGH: And also that the topic today 11 actually is about raise for between 12 percent and so 12 on for the already highest-paid officials of the 13 County. Am I correct? 14 CHR. ONO: No, I don't believe so. 15 MR. SADEGH: So there was a thing about 16 people getting 12 percent raise who are already making 17 99,000 and above? 18 CHR. ONO: That is one of the facts that 19 surfaced, but the overall changes in the salaries were 20 based on many, many factors which this commission had 21 to address. 22 MR. SADEGH: I see. 23 Well, today -- there's a letter today from 24 Mr. (inaudible) -- I'm sorry, I don't know the 25 distinction in terms of names -- Hayani Kamani, and ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 46 1 I'll just read one paragraph of that. 52 percent of 2 the public school students are economically 3 disadvantaged, which diminishes the students' 4 educational achievement; that our average income is 5 about $55,000 a year here on the island. That makes 6 somebody who makes $200,000 totally just, to me, 7 outrageous. Doesn't matter what they do. I mean, I 8 would -- I would say if the average income is $55,000, 9 make twice as much for someone to have everything, for 10 others to live in poverty, that just doesn't make 11 sense. 12 We don't need to compete with everybody else 13 in the world. We need to do the best for this County, 14 and we need to have people who are willing to give up 15 part of their lives without having to, you know, have a 16 yacht or this or that. They can't have that. I don't 17 know. But to live in poverty, to walk around a lady 18 with just one tooth because she cannot afford a doctor, 19 even, that is outrageous. To have to go to bed 20 hungry -- three million American children go to bed 21 hungry -- that is outrageous. We have to accept people 22 here who are willing to give of themselves, live a 23 comfortable life, but don't live above everybody else. 24 My own income has been limited to less than 25 $900, which is my Social Security. Because of my ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 47 1 ideas, I'm being profiled. But I'm still alive with 2 less than a thousand dollars income. I sleep on the 3 ground because I ran away from United States when -- 4 CHR. ONO: Mr. Sadegh, I'm going to have 5 to ask you to wrap up within 30 seconds, please. 6 MR. SADEGH: All right. 7 What I am saying is that we don't have to 8 compete with anybody. We don't have to compare 9 ourselves with any other state. We need to decide what 10 is best for us to create really a paradise here for 11 every human being that deserves to be in paradise in 12 this United States of America. Thank you, Sir. 13 CHR. ONO: Thank you very much. And, you 14 know, none of us disagree with you. 15 MR. SADEGH: Well, I am glad to hear that. 16 CHR. ONO: Thank you very much. 17 MR. SADEGH: So, when are top salaries going 18 to be reduced? Thank you. 19 CHR. ONO: Okay. 20 MR. FRATINARDO: Excuse me, Mr. Chair. 21 CHR. ONO: Yes. 22 MR. FRATINARDO: Could we have a break for a 23 bathroom break? Is that a possibility? 24 CHR. ONO: We -- no. No breaks. 25 Why don't we do this. Why don't we take a ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 1 five-minute break. Be back at 11:15 so we can continue 2 on with the agenda, please. 3 MR. FRATINARDO: Thank you. 4 (Recess ensued from 11:07 a.m. to 11:16 a.m.) 5 CHR. ONO: Can we call the meeting back 6 to order? We're going to try and keep this meeting on 7 track. So we used up a substantial amount of time with 8 the statements and dialogue between the testifiers, so 9 if we could, let's try and be as efficient as we can in 10 getting through this agenda. 11 I probably want to take a survey. Is this 12 commission willing to stay beyond lunchtime? I mean, 13 is there anybody unable to do that? 14 I know you have a conference call. 15 MR. HIGGINS: Yeah. I'll stay as long as I 16 can. 17 CHR. ONO: What is more important, 18 conference call or us? 19 MR. HIGGINS: Actually, both. 20 MR. HARANO: County. 21 CHR. ONO: Yeah. Hopefully, we can -- we 22 don't have to do that. 23 MR. HIGGINS: Depends on what's fair. 24 CHR. ONO: And, you know, we'll find an 25 appropriate time to cease the meeting and adjourn, and ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 49 1 we can always go to the next scheduled meeting. 2 Okay, the next item on the agenda is the 3 approval of the October 11th, 2017 minutes. With that, 4 the Chair will accept a motion to accept those minutes. 5 MS. IKEDA: So moved. 6 CHR. ONO: Somebody moves? 7 Do we have a second? 8 MR. HARANO: I second. 9 CHR. ONO: Okay, Nelson seconds. Any 10 discussion on that? 11 Not hearing anything, all those in favor 12 accepting the minutes of October -- 13 MS. SELF: 11th. 14 CHR. ONO: -- 11th say "Aye." 15 (All Commissioners responded affirmatively.) 16 CHR. ONO: Motion carried. 17 Let me see. Next item on the agenda is New 18 Business. We have been through the Communication. No, 19 I'm sorry, it is Communications. 20 We have a memorandum that is from the Acting 21 Director of Human Resources dated -- well, anyway, Bill, 22 do you want to do us a favor and explain this memo. 23 which is included as part of your agenda (SEE ATT. C)? 24 MR. BRILHANTE: Yes. Thank you very much, 25 Chair Ono. William Brilhante again, Acting ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 50 1 Administrator, Department of Human Resources. 2 This memo. that we provided is, you know, 3 from -- is generated by our incredibly hard-working 4 staff, so I would like to thank them. They are here in 5 the audience today. And basically what this memo. does 6 is it clarifies the previous raises that were approved 7 by this commission in that it makes each of the 8 salaries into 24 equally divisible payments. That way, 9 as the salaries are, you know, paid annually and 10 calculated, they are much easier for our payroll and 11 our, you know, finance specialists to calculate, and it 12 just creates a easier process. 13 And, generally, you know, as we do raises, 14 that's how we approach each and every raise for all the 15 departments is we make them easily divisible within the 16 24 -pay -period scale. And that's all this memo. does is 17 it clarifies the salaries. 18 CHR. ONO: Thank you. 19 Well, let me make a comment on this. You 20 will note that the effective date of these salary 21 changes is January lst, 2018. I have since been 22 advised that this commission cannot change that. If we 23 do it, it must be under a separate action. So, as it 24 stands of right now, we are not able to have a 25 discussion on something that we have already approved. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 51 1 And with that said, any questions on this? 2 MS. IKEDA: So what happens? Because, you 3 know, we took the action, but it cannot -- it doesn't 4 stand, so what happens next? Because we had approved 5 for January of 2018, but it's not legal, so what 6 happens next? 7 MS. SELF: No, it is legal. 8 MR. FRATINARDO: It is legal. 9 MS. SELF: You made a motion and you approved 10 that, so it's already happening. But there's nothing 11 on the agenda to do to -- there's no other action. 12 CHR. ONO: This is, primarily, for 13 information. 14 And, for your information, the salaries were 15 adjusted a slight bit so that they are 24 salary 16 payments and it comes out equal without -- nice job. 17 And thank the Department of Human Resources. 18 MR. BRILHANTE: Again, I have to thank my 19 staff. 20 CHR. ONO: Thank you, Jennifer. 21 MR. BRILHANTE: Jenny and Michele, thank 22 you. 23 CHR. ONO: Okay. Next item is New 24 Business. Do we have any new business? No, we don't. 25 That being said, let's go to the Unfinished ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 52 1 Business. And the next item is review of existing 2 compensation plan included in this discussion. Anyway, 3 there is a salary and worksheet that your Chair worked 4 on, again to have a starting point for discussion. And 5 it is included as part of your orange tab, and it's an 6 11 -by -17 sheet. And basically -- let me explain the 7 top portion of that (SEE ATT. D). 8 Does everybody have this sheet? It kind of 9 looks like this thing. 10 MR. FRATINARDO: Yes. 11 CHR. ONO: Okay. It's on the orange tab 12 that's called, in your folder, "Salary Worksheet." 13 Yeah. 14 Oh, they are different colors, so you don't 15 have an orange tab; you might have a different color. 16 It's discrimination to me. But, anyway, hey, it looks 17 like this. Okay? 18 MR. CAMPBELL: Yep. 19 CHR. ONO: Anyway, what your Chair did, 20 he did the same thing that he did last time and 21 basically tried to provide information all in one place 22 so we could look at what we're calling the Tier 3 23 Priority C positions. So these are the positions other 24 than the A and B positions, which we had salary 25 inversions or something really glaring within the ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 53 1 salary schedule. 2 So, with that, the suggested salary, to begin 3 the discussion, is shown in column No. 7 in the green 4 column. And, again, it's only the top half of the 5 page. So, the Chair will entertain any motion to begin 6 the discussion on this. 7 MR. FRATINARDO: District 1, I would like to 8 make a motion to open up discussion on the adjusted 9 salaries. 10 MR. CAMPBELL: Second. 11 CHR. ONO: Moved and seconded that we 12 open up discussion on these suggested salaries. 13 All those in favor say "Aye." 14 (All Commissioners responded affirmatively.) 15 CHR. ONO: Opposed? None. 16 Let's begin the discussion. 17 MR. FRATINARDO: Okay. 18 CHR. ONO: And, again, I might say that 19 these suggested salaries are on the same basis that 20 there are approximately 5 percent, or in some of these 21 cases, we just tried to pick an area someplace 22 between -- that falls comparable to consideration with 23 the different Counties across the state: Kaua'i, Maui, 24 and the City and County of Honolulu. 25 MR. FRATINARDO: Mr. Chair, I have spoken to ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 54 1 a couple of -- and I won't state their names because 2 they're not here -- but some of the information I've 3 got is that since the '80s, this island has grown, and 4 there's a perception that, you know, their job is -- 5 with the County Council, that their job is part-time; 6 but because of the change in population and the 7 workload that they're under now, that they're not a 8 part-time job. And I'd ask a couple of other County 9 council members to come in and give their testimony so 10 that their technical jobs -- not to ask them to either 11 a yea or nay on the pay raises for them, but just 12 explain what they do as a councilperson so I can use 13 that information and make a informed decision relative 14 to giving them a raise or not. 15 So I was wondering if we could invite those 16 County council members back -- I mean, I'm glad Sue 17 Lee Loy came in, but if we can bring all of them and 18 ask them, pertaining to their job description and each 19 district, what they're doing for their constituents. 20 CHR. ONO: That's fine with me. 21 Any comment from any of other commissioners? 22 MR. CAMPBELL: I don't know if you would need 23 to do that for every council member. Certainly for the 24 council member -- councilwoman in Ka'u, I pretty much 25 know what she does and -- because she's active; she's ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 55 1 out there in the community and leads the Finance 2 Committee and several other things that are a lot of 3 work. I mean, more than 100 percent time. She works 4 day and night. 5 MR. FRATINARDO: Sure. And for me, it's 6 about people having this perception that their job is 7 part time or -- I've bumped into council members in KTA, 8 for example, at 11:00 at night that just came from a 9 meeting, and they're working a lot of hours along with 10 maybe their other job also. 11 CHR. ONO: Well, the Chair can share with 12 you that I don't think being an effective councilperson 13 is a part-time job. It started off years ago that the 14 County council people are supposedly policy-making only; 15 and for that reason, they used to meet/decide on policy 16 for the County, this County; but what has transitioned 17 is over the years, they have been people that their 18 constituents go to, to solve problems and issues, and 19 they have to be much more involved in order to 20 understand and make decisions on their policies. So I 21 don't believe there is anybody that can effectively be 22 a councilperson today and do it on a part-time basis. 23 But that would be my observation. 24 MR. FRATINARDO: Thank you. 25 MR. HIGGINS: For me, I don't think it would ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 56 1 make any difference if more people come and tell us the 2 kind of job that they're doing. I can't imagine 3 anybody coming here and saying that they're doing a 4 lousy job or not working hard enough. So, I don't think 5 that would be meaningful to have that many more 6 testimonies. For me, it's a matter of looking at the 7 suggested list. And there's a lot of 25-percenters in 8 there, and if you go this -- trying to figure out the 9 balance from what the mayor is saying is that, hey, you 10 know, a burden on the budget is also a burden on all 11 taxpayers. So, we get back to that, this affordability 12 thing. So, I don't know how we're going to resolve 13 that. Nobody here, including the mayor, has an answer. 14 CHR. ONO: No, there isn't really a good 15 answer. 16 MR. HIGGINS: Yeah. 17 CHR. ONO: I totally agree. 18 Can the Chair suggest this, that we take this 19 information and return at the next meeting -- I'm going 20 to ask each commissioner to take a look at each of 21 these salaries here and come with your specific 22 recommendation so that, at the next meeting, we can 23 decide on what these salaries should be for these 24 positions; and then also if we adopt that new salary 25 schedule for these positions here, that we set an ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 57 1 effective date for these positions at our next meeting? 2 Does that sound acceptable? 3 MR. FRATINARDO: Yes. 4 CHR. ONO: Okay. 5 MR. PAVAO: Yeah. 6 MR. HIGGINS: I'd like to just put one more 7 input in. Don't forget the salary increases are one 8 thing that the budget people are going to have to work 9 with the mayor on -- from July, I guess, next year on. 10 It's not only the salary increases, but it's also the 11 funding of the increases of the contributions to the 12 retirement plan that we are approving as well. We're 13 not talking about that, but that effectively, because 14 you have a two-pronged array, increase in expenses to 15 the budget as a result. And just throw that out. So, 16 it puts more pressure. The more of the pay increases 17 that we approve, the more, actually, that the County 18 has to come up with. 19 CHR. ONO: May I have a motion to defer 20 this to the next meeting, then, this item? 21 MR. PAVAO: So moved. 22 MR. CAMPBELL: Second. 23 MS. IKEDA: Second. 24 CHR. ONO: Moved and seconded that we 25 defer this to the next item. Come prepared to discuss ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 58 1 it, as we have previously stated. 2 All those in favor -- any discussion on that? 3 Mr. Pavao made the motion, and it was 4 seconded by Ms. Ikeda or someone else? Good enough. 5 Okay. 6 All those in favor say "Aye." 7 (All Commissioners responded affirmatively.) 8 CHR. ONO: Nay? 9 Motion is carried. So, that will appear in 10 the next agenda. 11 The next item is the Commission Execution 12 Plan (SEE. ATT. E). And this is just for information 13 Only. And it is indicated -- called updated -- no. 14 MR. BRILHANTE: It's entitled Execution -- 15 CHR. ONO: Execution Plan. 16 MR. FRATINARDO: Execution Plan. 17 CHR. ONO: Yeah. Okay. Anyway, again, 18 what was done here was just updated with dates, and 19 then what's happening when -- some of these items are 20 on this agenda, so it's shown there on the right-hand 21 column as on agenda. And this is primarily for 22 information only. I don't believe that we have to act 23 on this at all. But any questions on it? 24 If not, let's move on to the next item, which 25 is Talking Paper. And it's the next tab. And what we ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 59 1 decided to do is I thought I'd put together a chain of 2 events on what this commission went through in coming 3 up with the approval at the last meeting, to include 4 the 6-2 vote and setting the effective date. So that 5 is shown on that spread sheet over there. And it's 6 primarily for information (SEE ATT. F). 7 And I find this helpful so that -- sometimes 8 in explaining, there's so many points that we went 9 through that just handing this out might serve as a 10 better tool when you're asked questions about 11 specifics. At least it gives the people that are 12 inquiring a handle of what this commission went through 13 in making its final decision as far as the salary 14 increases that were put into effect effective 15 January 1st, 2018. 16 And, again, any questions on this? 17 MR. CAMPBELL: Very helpful. Thank you for 18 doing that. 19 MR. HIGGINS: Yeah. 20 CHR. ONO: I thought it is, you know. 21 And I can't remember anything. That's why. So put it 22 in writing. And then, I forget how to read. I don't 23 know how to do that either. Anyway, so that's for 24 information only. 25 The next one is discussion regarding the ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 60 1 recent salary increases approved at the last commission 2 meeting. In reviewing these -- the salaries that we 3 put into effect dated January 1st, 2018, there were 4 two -- four positions in there that the Chair thought 5 was funny. And, again, if you go to the sheet that we 6 just looked at, the salary worksheet, the positions 7 occur within Planning Department and the Department of 8 Human Resources (SEE ATT. D). 9 And if you can pull out that same sheet that 10 we looked at, the one that we deferred, it's on the 11 bottom, and it's titled -- the bottom section is called 12 "Salary Worksheet for Re: Discussion of Previously 13 Approved Priority Level A Positions." And it shows the 14 Director of Planning and the Deputy, the salary that we 15 approved in column 4, the previous salary, what it was, 16 and a suggested new salary, and also the comparables 17 for Maui, Kaua'i, and the City and County of Honolulu. 18 Let me explain why I felt there was something 19 really strange about these. The Planning director, we 20 set the salary at $117,486. The Planning Department is 21 one that requires a certain type of professional. 22 Needs to be a planning profession. And the position is 23 very important to the County of Hawaii because all the 24 planning approvals, development plans, community 25 development plans, that come through, are going to be ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 61 1 part of this County's future, go to the Planning 2 Department; and I felt that there was quite a 3 deficiency in what we set the salary at. My thinking 4 was that it should be equal to those people that head 5 up the Department of Public Works and the Department of 6 Environmental Management, who are professional 7 engineers. And so, that's reason for that one. 8 And the director of Human Resources and the 9 deputy for that was set at $111,000, and, again, that 10 position is also professional level; you can't just 11 pick any businessperson off of the street. And they 12 have to have a background in human resources, labor 13 relations. They work on the negotiations for the 14 County. So, I felt that that was -- that was an 15 incorrect salary that we had set that at. 16 So, with that, I'd like to know, you know, 17 what the thoughts of the people on this commission are. 18 MR. FRATINARDO: I think you're correct, 19 Mr. Ono. It may have been a little -- we may have 20 overlooked it a little -- a lot. I think we overlooked 21 that. I think it should have been addressed. And the 22 reason why, I'm a Homeland Security sort of a -- all of 23 these positions would be affected if we had some sort 24 of a disaster; so they would be tied in with all of our 25 first responders sort of positions. When we have an ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 62 1 earthquake, who do we go to? Civil Defense goes to 2 these people to respond for a plan. How do we deploy? 3 And I think you are absolutely right by adjusting the 4 salaries. 5 CHR. ONO: Well, another thing. I 6 included the Parks deputy and the director position 7 primarily as information. We set the Parks director at 8 $128,760 and the deputy accordingly lower. The Parks 9 Department probably doesn't require as much detailed 10 expertise as running the Department of Public Works or 11 Environmental Management, nor the Planning Department. 12 And that is just provided for information. So I 13 thought, at the very least, these positions that we're 14 talking about should at least match the director of 15 Parks, director and the deputy of the Department of 16 Parks and Recreation. 17 So, with that said, any other comments? 18 Chair would entertain a motion to -- Amy, we 19 have to handle this differently, right? Because these 20 were previously approved. 21 MS. SELF: It would have to be a new motion. 22 You can't reconsider what you have already done. 23 CHR. ONO: Okay. 24 MR. FRATINARDO: When it comes to the Parks 25 Department, I know people that work for Parks ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 63 1 Department, several supervisors, so when there's like 2 some sort of a disaster that occurs, those people have 3 to go to the Parks director, and those people actually 4 get redeployed to other -- 5 CHR. ONO: We're not changing theirs. 6 MR. FRATINARDO: No, no. 7 CHR. ONO: That one is not -- 8 MR. FRATINARDO: But, I mean, it's a very 9 important position is what I'm just trying to say. 10 CHR. ONO: So the Chair would entertain a 11 motion to adopt this or do something with it for 12 discussion. 13 MR. FRATINARDO: I would like to make a 14 motion to discuss the adoption of these new salaries. 15 CHR. ONO: The Chair might -- yeah, the 16 Chair would -- 17 MR. FRATINARDO: Is that what he said? He's 18 asking that 19 MS. SELF: If it's a motion, it's going to 20 have to be -- if you want to consider these new 21 salaries that are on this -- 22 CHR. ONO: Yes. 23 MS. SELF: -- it would have to be a new 24 motion. You can't go back to what you have already 25 passed, so -- ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 64 1 CHR. ONO: So, the motion would be to 2 adopt this and then we can discuss it. 3 MR. PAVAO: Mr. Chair, we can already adopt 4 what exists here, correct? 5 MS. SELF: No. 6 MR. PAVAO: Mr. Chair, I think the proper way 7 is for us to 8 MR. HIGGINS: I'm lost. 9 MR. PAVAO: -- agree on an agenda item for a 10 future meeting so we can discuss that as well as the 11 implementation plan, should we want to revise it at 12 some future meeting. I don't think we can do it at 13 this meeting. It's already done. 14 MS. SELF: He's discussing a motion to adopt 15 these salaries for these particular positions. So 16 you've already adopted salaries at the November 27th 17 meeting, so that's already done. It's effective 18 January 1st. So you can't reconsider that. It's 19 already done. 20 But what the Chair is talking about doing is 21 making a new motion to adopt these new salaries. 22 MR. FRATINARDO: The ones on the bottom. 23 MR. HIGGINS: Oh, the ones on the bottom. 24 MS. SELF: Yes, for Planning director and 25 deputy Planning director. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 65 1 CHR. ONO: And Human Resources. 2 MR. FRATINARDO: I have a question -- 3 MR. PAVAO: Some of those was already done at 4 the last meeting. 5 MS. SELF: Yes. 6 MR. FRATINARDO: I have a question for -- 7 MS. SELF: He's asking for a new motion to 8 set it at these salaries. So, in effect, it would be 9 whatever vote you take today on these, whether or not 10 the previous one would go forward, or if it would be 11 this one, depending on how you vote today. 12 MR. FRATINARDO: Got it. 13 CHR. ONO: The Chair might explain that 14 we need the motion to put it into discussion, not that 15 we would approve it, but, you know, we need the motion 16 to have the discussion. And we might defer it to a 17 future time, but we do need the motion to discuss it as 18 part of our agenda, and then -- 19 MR. FRATINARDO: I made the motion. I made 20 the motion to discuss these for change. I made that 21 motion. I made a motion -- 22 MR. CAMPBELL: Right. 23 MR. HIGGINS: Yes, he did. 24 MR. FRATINARDO: -- to discuss exactly what 25 you want to do. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 66 1 MR. CAMPBELL: Second. 2 MS. SELF: I think what he's asking -- you 3 can 4 CHR. ONO: That's fine with me. 5 MR. FRATINARDO: Not to change it, but I made 6 the motion to discuss -- have this discussion. 7 MS. SELF: Okay. Just for purposes of 8 discussion? 9 MR. FRATINARDO: That's what you're asking, 10 correct? 11 MS. SELF: To discuss, or did you want to 12 take action? 13 CHR. ONO: Well, I wanted it to be for 14 action, because you can still have the discussion with 15 the action, but you need not act on it. We could defer 16 it. 17 MR. FRATINARDO: Sure. That's what I was 18 making the motion for. My motion was to discuss these 19 adjusted salaries for -- to adjust -- 20 CHR. ONO: Approval. 21 MR. FRATINARDO: -- for approval. 22 MS. SELF: Oh, for approval. Okay. 23 MR. FRATINARDO: So I make that motion again. 24 MS. SELF: Okay. 25 CHR. ONO: Okay. We have Thomas making ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 67 1 the motion, seconded by George. 2 MR. CAMPBELL: Yeah. 3 CHR. ONO: And -- 4 MR. BRILHANTE: One second, Chair. Let me 5 just make sure that our clerk got that. 6 We got it. Thank you. 7 MR. FRATINARDO: And I have a question for 8 Mr. Brilhante about adjusting salaries. 9 How difficult is it for the Department of 10 Finance or the ladies sitting out in the audience, if 11 we see in the future -- if a department head comes in 12 and requests a change? It can be done -- how difficult 13 is it to adjust like an individual salary? 14 MR. BRILHANTE: That's somewhat of a loaded 15 question, but I will put this forward, that, you know, 16 oftentimes with collective bargaining, you know, say, 17 for example, SHOPO, we'll run through a situation where 18 the contract has expired and we still continue through 19 negotiations. And like I referenced in the SHOPO 20 contract, you know, we just got the arbitration 21 decision a couple weeks ago, and as a matter of fact, 22 yesterday it was just heard from and approved, you 23 know, the cost items were approved in front of County 24 Council, but the effective date of the raises go back 25 to July lst of this year. So, a recalculation and a ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 68 1 readjustment has been made. 2 Of course my staff, you know, from the 3 finance, you know, perspective would appreciate as much 4 lead time as possible, because there's a processing, 5 you know, requirement, but, you know, this commission 6 is able to set the effective date in the future, and it 7 should be, you know, adequately, you know, complied 8 with. 9 MR. FRATINARDO: That answers my question. 10 Thank you. 11 MR. HIGGINS: I have a question. Amy, am I 12 right in saying whatever -- let's say that bottom part, 13 if we agree to vote on it and approve those salaries, 14 whatever we do in that regard, it's set in granite? In 15 other words, nothing can be adjusted if we cannot go 16 back and make this retroactive in July to help the 17 mayor and the current budget? That's all set, right? 18 So everything that we've approved, that's it? 19 MS. SELF: Everything you've approved thus 20 far is already set. 21 MR. HIGGINS: And cannot be adjusted? 22 MS. SELF: Except for the fact -- the reason 23 you can't go back on the other ones is because it's not 24 on the agenda, so you are not able to discuss it. What 25 is on your agenda today is to discuss the ones that you ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 69 1 just made a motion on. 2 MR. HIGGINS: All right. But still, you know, 3 we've got this Aaron Chung, if you remember -- everybody 4 read this memo. -- basically makes a good point 5 about that $42,000 on one of the increases (SEE ATT. G). 6 My question is even if we wanted to, we 7 cannot change that to, say, a 20,000 increase or 8 something that sounds more reasonable? The average 9 person out there that's a taxpayer is going to see that 10 and go, "Oh, my God, that's ridiculous." 11 MS. SELF: We're actually beyond the scope of 12 your motion right now anyway. You cannot -- you can't 13 discuss that today because it's not -- 14 MR. HIGGINS: Not on the agenda. If it was 15 on the agenda, could we? 16 MS. SELF: Yes. 17 MR. HIGGINS: Thank you. 18 MS. SELF: You're not precluded from 19 discussing it at a later meeting as long as it's on the 20 agenda. 21 MR. HIGGINS: Thank you. 22 CHR. ONO: Okay. It's been moved and 23 seconded that we approve these positions, the director 24 and deputy of Planning and the director and deputy of 25 Human Resources. We did not -- that we discuss it, and ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 70 1 also add in there that we would also look at setting a 2 effective date for these positions also, whether it be 3 the same date or something else. 4 So with that said, any -- all those in favor? 5 MS. IKEDA: It's not very clear to me. 6 CHR. ONO: What am I doing over here? 7 MR. HIGGINS: In favor of what? 8 CHR. ONO: In favor of approving this as 9 an -- 10 MS. SELF: These salaries? 11 CHR. ONO: -- approving these salaries 12 for discussion. I mean, we need to approve it and then 13 we can -- this is not a vote, right? Wait a minute. 14 MR. FRATINARDO: It's already been approved. 15 MS. SELF: You are in discussion. 16 CHR. ONO: We are in discussion. Okay. 17 So, we're fine. 18 Go ahead. We're not voting yet. Nobody 19 called for the question. 20 Okay. We're open for discussion. 21 MR. PAVAO: Mr. Chair, you know, I certainly 22 appreciate all the effort you went through to figure 23 out these schedules, but I would feel a lot more 24 comfortable if I could understand how you came about 25 the salaries. In other words, what methodology did you ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 71 1 use to set the salary? Because all I see, as far as 2 I'm concerned, like, for example, Planning director, 3 all I see is the 132,000. How did that come about? 4 CHR. ONO: It matches -- that one matches 5 the Public Works director and the deputy -- I mean the 6 DEM. 7 MR. PAVAO: Because it just matches? 8 CHR. ONO: Yeah, it matches. 9 And the rationale is that it is a 10 professional position, requires a professional planner; 11 and as far as the Human Resources and the deputy, the 12 rationale was that it should at least match the Parks 13 Department -- department heads. 14 MR. PAVAO: Okay. 15 CHR. ONO: Okay? But, you know, we're 16 open to discussion, so welcome any discussion as far as 17 anybody's feeling on whether it should be more, less, 18 or otherwise. It's just a discussion point. You know, 19 something that we could start the discussion with. 20 MR. HIGGINS: Can I make a motion to approve 21 those salary recommendations? 22 CHR. ONO: You certainly may. 23 MR. HIGGINS: I do -- 24 MS. SELF: There's already a motion on the 25 table. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 72 1 MR. FRATINARDO: Can I say -- 2 MR. BRILHANTE: The motion on the floor is to 3 discuss the salary. 4 MS. SELF: But he said and to take action. 5 MR. CAMPBELL: And approve, he said. 6 CHR. ONO: Yeah, he did. 7 MR. FRATINARDO: To approve it. To approve 8 it. 9 MS. SELF: So it's already -- 10 MR. HIGGINS: It's already in. 11 MS. SELF: You can call for the question. 12 MR. FRATINARDO: But can I say just one 13 thing? Sorry. When I was a police officer in Waimea, 14 one of the little things that linger in the back of 15 your mind is when you do your job or you're going to 16 get sued. Just for me -- and so you have to be 17 qualified to do your job. Like Mr. Ono just said, you 18 have to have licenses. You have to have understanding 19 of the laws that exist in your state and county and 20 sometimes federal law. So who are the best people to 21 carry out the execution of this position, and are they 22 qualified or are they even overqualified at times? 23 So I look at this position and I see these 24 people are qualified or even overqualified for their 25 job, and they need to be compensated for that. So ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 73 1 that's my opinion. 2 CHR. ONO: Thank you. 3 MR. PAVAO: Comment? 4 CHR. ONO: Mr. Pavao. 5 MR. PAVAO: After looking at this, I mean, I 6 personally feel the Human Resources, you need more 7 qualifications to do that than the Parks director. I 8 don't see why it should be the same. I think Human 9 Resources should be higher. 10 CHR. ONO: Welcome your comment. What 11 would you like to suggest? 12 MR. PAVAO: I don't know. You need a lot of 13 qualifications for being the director of Human 14 Resources, not so much as you need to be director of 15 Parks and Recreation, if that's what you're trying to 16 match it with. 17 MS. IKEDA: There's a motion, right, on the 18 floor at this point. If we don't approve it and then 19 make a motion to defer this to the next meeting, could 20 that be done? 21 CHR. ONO: Uh-huh. Well, we would -- 22 yeah, that can be done. 23 MS. SELF: Yes, you could -- I think you 24 could make a motion to continue it to -- or table it to 25 the next meeting. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 74 1 MR. HIGGINS: What additional info. would we 2 get by -- 3 MR. CAMPBELL: Deferring it? 4 MR. HIGGINS: -- deferring it? Here we go 5 again, folks, kicking the can down the road. What are 6 we going to learn new at another meeting? 7 MR. FRATINARDO: Do we need to wait? Why do 8 we need to wait? 9 CHR. ONO: Florence? 10 MS. SELF: You know, I think -- what I was 11 just discussing with Bill, I think that you're going to 12 have to take care of the motion that's on the table 13 right now, either withdraw it or take a vote. And then 14 if you want to withdraw -- if the person who made the 15 motion wants to withdraw the motion, then you could 16 make a motion to defer this until your next meeting. 17 MR. FRATINARDO: Question: Can we identify 18 one position and then agree to defer that so Mr. Ono 19 can -- or to adjust the salary higher, and then vote on 20 the other positions? 21 CHR. ONO: Split it. 22 MR. FRATINARDO: Can we split it, or do we 23 need to go through another motion to do that? 24 MS. SELF: You can, but you would need to 25 withdraw the motion that is on the table right now, ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 75 1 because it was for all of these. It was for four 2 positions. 3 MR. FRATINARDO: Would that be a -- would 4 that be a better way of doing it? 5 CHR. ONO: I think so. 6 MR. FRATINARDO: We can -- so we're 7 revisit -- to revisit Mr. Brilhante's salary. 8 CHR. ONO: It is not his salary. 9 MR. BRILHANTE: Yeah. I just want to -- 10 MR. FRATINARDO: I apologize. Human 11 Resources. 12 MS. SELF: Position, yes. 13 CHR. ONO: The Chair might suggest that 14 we amend the motion and first split it out. Let's do 15 the Planning Department one first and then handle the 16 Human Resources next. Is that acceptable? 17 MS. IKEDA: The reason that I asked that we 18 defer -- you know, move toward that is because I myself 19 am not sure of what the job descriptions of each one 20 does, so maybe one has more equity than the other, but 21 I would like to take a look at the positions to see, 22 you know, are they equitable, or, you know, is more 23 than the other in their scope of duties? 24 MS. SELF: Chair, if I may, if the Salary 25 Commission wanted to defer this until the next meeting, ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 23 defer. 24 CHR. ONO: I need a motion to defer. 25 MR. PAVAO: So moved. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 76 1 then we could provide them with the information about 2 what's required -- they do have qualification 3 requirements. I believe it's set up in the Charter 4 that way. So then you would have time to look at 5 the -- 6 CHR. ONO: Commission. 7 MR. FRATINARDO: So, I have to withdraw my 8 motion in order to do that? Defer it? 9 MS. SELF: Yes, you have to withdraw. 10 MR. FRATINARDO: Okay. So -- 11 CHR. ONO: That's fine. 12 MR. FRATINARDO: -- I make a motion to 13 withdraw my -- 14 MS. SELF: You just withdraw your motion. 15 MR. FRATINARDO: I -- 16 CHR. ONO: So the motion doesn't exist. 17 MR. FRATINARDO: I withdraw my motion. 18 MS. SELF: Right. So there's no motion on 19 the table now. 20 CHR. ONO: So what we will do, defer this 21 item to the next scheduled meeting? 22 MS. SELF: You need to make a motion to 23 defer. 24 CHR. ONO: I need a motion to defer. 25 MR. PAVAO: So moved. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 77 1 CHR. ONO: Milton. 2 MR. HIGGINS: I would like to make a motion 3 to accept the recommended pay increases as presented by 4 this schedule. 5 MR. CAMPBELL: I'll second it. In 6 discussion -- 7 CHR. ONO: I think what we should do is 8 probably -- being that it's more like an original 9 motion, just act on that original motion. If we get a 10 nay vote out of it, then we defer it, right? 11 MS. SELF: Okay. 12 MR. HIGGINS: No, wait. This is going to 13 make us make one move or the other, yeah. 14 MS. SELF: Okay. So what we have now is the 15 original motion is gone, because it was withdrawn. 16 MR. HIGGINS: Right. 17 MS. SELF: Milton made a motion, but there 18 was not a second. 19 MR. CAMPBELL: Yes, there was. 20 MS. SELF: For Milton's? 21 MR. CAMPBELL: Oh, for Milton's. 22 MS. SELF: So, we're at your motion now. 23 MR. HIGGINS: Correct. 24 MS. SELF: And you got a second. 25 MR. CAMPBELL: Right. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 78 1 MS. SELF: Right. So that's where you're at 2 now. 3 CHR. ONO: It's been moved and seconded 4 that we adopt the suggested salaries as shown here on 5 this salary worksheet. 6 MR. FRATINARDO: Discussion. 7 MS. SELF: I'm sorry. For the minutes, could 8 you mention which positions they are? 9 CHR. ONO: Okay. It's been moved and 10 seconded that we approve these salaries for the 11 director of Planning at $132,744, the deputy Planning 12 director at $126,420, the director of Human Resources 13 at $128,628, and the deputy director of Human Resources 14 at $122,628. 15 Open for discussion. 16 MR. CAMPBELL: Call for the question. 17 CHR. ONO: Hearing none, we will call for 18 the question. 19 I think we'll do a roll call vote on this. 20 Go ahead. Let's start on this end of the table with 21 Nelson. 22 MR. HARANO: Aye. 23 MR. FRATINARDO: Aye. 24 MR. DOW: Nay. 25 MS. IKEDA: Nay. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 79 1 CHR. ONO: Next, Milton. 2 MR. PAVAO: No. 3 MR. HIGGINS: Aye. 4 MR. CAMPBELL: Aye. 5 CHR. ONO: And the Chair votes Aye. 6 So the vote is 5 to 3 in favor of approving 7 the motion; so the motion is passed. 8 Is there something that we missed? 9 MS. YAMADA: As a "'no" vote, I heard Dr. Dow, 10 Milton Pavao. Was it Ms. Ikeda? 11 CHR. ONO: Yes. That's correct. 12 Okay. No, I think we're finished with that. 13 MS. SELF: Uh-huh. 14 CHR. ONO: Okay. 15 Sorry we can't unanimously agree on this. I 16 would have liked that. 17 The last item we have is an open discussion 18 concerning proposals for Tier 2. And basically what we 19 wanted to do is just to have a discussion of ideas on 20 what should happen as we move forward past these 21 positions into the future years. 22 So, does anybody have any thoughts -- I 23 certainly have a plan that I am willing to put forth on 24 how this can be handled in the future with collective 25 bargaining raises, but go ahead. It's just an open ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 1 discussion we're having. 2 Yes, Amy? 3 MS. SELF: I'm sorry. Could we go back to 4 the previous item? 5 CHR. ONO: Sure. 6 MS. SELF: Because there was no effective 7 date decided on. Is that correct? 8 CHR. ONO: You're correct; there was no 9 effective date. 10 MS. SELF: Because -- 11 MR. FRATINARDO: Who introduced the motion? 12 Who 13 CHR. ONO: Did Mr. Higgins? 14 MR. HIGGINS: Yeah, I made the motion, and it 15 did not include an effective date; so I would like to 16 make it consistent with all the other pay raises. 17 CHR. ONO: It's been moved for January 18 lst, effective date. 19 MR. CAMPBELL: Second. 20 MR. FRATINARDO: Just one question. It's not 21 going to confuse the people that are actually -- will 22 it cause them a lot of pilikia to do that, being that 23 we're already -- I just want to make sure it's okay 24 with them. 25 MR. BRILHANTE: As long as the official ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 81 1 action comes to our office and we have ample time, 2 prior notice, then we should be able to process it. 3 MR. FRATINARDO: I'm for it. 4 CHR. ONO: It's been moved and second. 5 It's been moved by Mr. Higgins and seconded by 6 Mr. Campbell that we set the effective date for the 7 previous motion as January 1st, 2018. 8 Discussion? 9 MR. DOW: I have a question. Is effective 10 date and date of implementation the same? 11 CHR. ONO: In my mind, it is. 12 MR. DOW: It is. 13 CHR. ONO: The date that it starts. 14 MR. DOW: You're not going to wait until the 15 changing of fiscal year to actually implement, with it 16 retroactive to January 1st? 17 CHR. ONO: We're open for discussion 18 right now. 19 MR. FRATINARDO: I go back -- I go back to 20 what Deanna Sako told us: The money is there. If the 21 money is not there, then tell us the money is not 22 there; but if the money is there, by all means, we go 23 forward with it. 24 MS. IKEDA: I would like to know if it's 25 sufficient time for the staff, too, because this is at ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 82 1 the end of the year -- 2 MR. FRATINARDO: I just -- 3 MS. IKEDA: -- January 1st. 4 MS. SELF: He's checking. 5 MS. IKEDA: He's going to check. 6 CHR. ONO: But -- 7 MR. FRATINARDO: But that was the question I 8 asked Mr. Brilhante, will it cause any pilikia for them 9 to make the actual -- 10 MS. IKEDA: Yes, because it's at the end of 11 the year, and they have holidays -- 12 MR. FRATINARDO: Yes, yes. 13 MS. IKEDA: -- so they won't be working on 14 certain days. 15 MR. FRATINARDO: That was my question. 16 MR. PAVAO: Mr. Chair? 17 CHR. ONO: Yes, Mr. Pavao. 18 MR. PAVAO: I will be voting no on this 19 motion for the simple reason that at some time during 20 this meeting, I'd like to propose an agenda item for 21 next meeting to review and reconsider some sort of a 22 more palatable implementation plan instead of January 23 1st. The mayor had some strong concerns. We did give 24 the raises, and I believe they should have raises, but 25 I think we can do it in a fashion that is less ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 83 1 burdensome to the County. It may be a pro rata type 2 thing, or it may be a deferral to the new budget year, 3 but some sort of discussion -- 4 MS. SELF: Excuse me. I'm sorry, Milton, but 5 this is not on the agenda. 6 MR. PAVAO: No, no. I'm saying I want to 7 propose that we put it on the next agenda. 8 MS. SELF: Oh, okay. 9 MR. PAVAO: Yeah, I realize we can't do it 10 now, but I think an agenda item on the next agenda 11 should be -- 12 MS. SELF: This is on B. This is under 13 opportunity to request -- 14 MR. PAVAO: No, I'm just trying to explain my 15 reason why I'll be voting no. 16 MS. SELF: Oh, okay. 17 CHR. ONO: Well, we have a motion on the 18 table to set the effective date on January lst, and if 19 we opt not to approve that, then it becomes -- or we 20 can defer it to another time, I guess; but right now, 21 that is the motion, as I understand it, so I believe 22 I'll call for the question at this time. 23 So, the motion is to approve these salary 24 requests as effective January lst, 2018. 25 So, all those in favor. I'll do a roll call ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 1 vote with Nelson first. Nelson, please. 2 MR. HARANO: Aye. 3 MR. FRATINARDO: Aye. 4 MR. DOW: Nay. 5 CHR. ONO: Florence? 6 MS. IKEDA: Nay. 7 MR. PAVAO: No. 8 MR. HIGGINS: Aye. 9 MR. CAMPBELL: Aye. 10 CHR. ONO: And the Chair votes Aye. 11 Okay. So that these raises right now will 12 take effect -- these revised raises will take effect on 13 January 1st, 2018. 14 Milton, did you want to -- that will be up 15 here. 16 MR. BRILHANTE: Coming up. 17 CHR. ONO: Okay. This open discussion. 18 I think it might be appropriate, being that we have 19 these other ones that we have to take under 20 consideration at the next meeting, why don't we defer 21 this last item, Open Discussion for Tier 2, to the next 22 meeting. Does that make sense? Okay. 23 MR. HIGGINS: Uh-huh. 24 MS. IKEDA: Uh-huh. 25 MS. SELF: So, you need a motion. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 85 1 MR. BRILHANTE: You need a motion. 2 CHR. ONO: I need a motion. 3 MS. SELF: To defer. All those in favor say "Aye." 4 CHR. ONO: May I have a motion to defer 5 this to the next meeting? 6 MS. IKEDA: I so move. 7 CHR. ONO: Okay, moved. 8 MR. FRATINARDO: Seconded. 9 CHR. ONO: Moved by Florence and seconded 10 by -- was that Harold? 25 11 MR. FRATINARDO: Tom. 12 CHR. ONO: Tom. 13 That we defer this last item to our next 14 meeting, whenever that's scheduled. 15 All those in favor say "Aye." 16 (All Commissioners responded affirmatively.) 17 CHR. ONO: All those opposed? 18 Motion is carried. 19 Now this, items to be placed on the next 20 agenda. 21 MR. PAVAO: Mr. Chairman? 22 CHR. ONO: Mr. Pavao. 23 MR. PAVAO: I would like to propose an 24 item on the next agenda, and the topic of the item 25 would be reconsideration of implementation plan of any ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 1 pay raises already granted or approved. 2 CHR. ONO: Okay. We will place that on 3 the next agenda. 4 MR. PAVAO: Thank you. 5 CHR. ONO: Okay. 6 MS. IKEDA: Mr. Chairman? 7 CHR. ONO: Yes. Does the Vice -Chair want to 8 MS. IKEDA: I don't know if it's appropriate, 9 but, you know, like the mayor said, that there is, you 10 know, the funding, but could we ask Finance to look 11 into other ways of funding the positions? For example, 12 like fines collected, where do they go to? Do they go 13 to the general fund? Do they stay within the be a 14 department? Can these funds be appropriated for salary 15 purposes? It will be in effect by that 16 CHR. ONO: Does the Vice -Chair want to 17 have the Department of Finance present at the next 18 meeting? 19 MS. IKEDA: I guess so. 20 CHR. ONO: Okay. We'll have that. 21 MS. SELF: Can we go back to Mr. Pavao's 22 suggested item for the next agenda? It won't be a 23 reconsideration; it will just be up for discussion. 24 MR. CAMPBELL: It will be in effect by that 25 time, so you can't take it away. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 87 1 MS. SELF: Yeah, it will already be in 2 effect. 3 MR. PAVAO: You can always revise it. I know 4 it's going to be in effect, because the meeting is 5 going to be after January 1st, right? 6 MS. SELF: Yeah. 7 Is it too late for reconsideration of the 8 motion that set the effective date? 9 MR. FRATINARDO: Mr. Chair, can I just say 10 something? 11 CHR. ONO: There's a discussion going on. 12 MR. FRATINARDO: I'm sorry. 13 MS. SELF: Bill, can you tell everybody? 14 MR. BRILHANTE: I was just explaining to 15 Commissioner Pavao that because there was a previous 16 motion passed, when you use the language of, you know, 17 a motion to reconsider, there's a legal connotation to 18 that, and there are some statutory requirements 19 associated with a reconsideration of a prior approved 20 motion. And, you know, so I was just explaining that, 21 you know, that connotation to Mr. Pavao. And that was 22 the discussion we were having. 23 But he's absolutely correct, as his question 24 is, well, you know, the motion is on the table -- you 25 know, the approval is already on the table, the ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 25 to? ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 88 1 implementation or start date of the raises is January 2 1st; you are not going to have a meeting until, you 3 know, anticipated after January 1st, so how do you go 4 about addressing that? And that's what his question 5 was to me. 6 And I think I'm going to defer to the 7 official legal counsel on the table, Ms. Self. 8 MS. SELF: Okay. So, I think what the agenda 9 item would be is to discuss the effective date for the 10 salaries that were determined at the November 27th, 11 2017 meeting. 12 MR. PAVAO: No, that cannot be, because at 13 the time of the meeting -- at the time of our next 14 meeting, those salaries are already in effect; so it 15 would be a revision. Because no matter what, during 16 January, they are going to have to have that share of 17 their raise in January. 18 MS. SELF: Yeah, they will already have 19 received it. 20 MR. PAVAO: So, there's nothing we can do 21 about that. But we can do something about future -- 22 MR. BRILHANTE: Future. 23 MR. PAVAO: -- pay raises. 24 MS. SELF: So, which ones are you referring 25 to? ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 1 MR. PAVAO: All of them. 2 MS. SELF: You're referring to the ones you 3 haven't decided? 4 MR. PAVAO: No, I'm referring to all of them. 5 CHR. ONO: The ones that have been 6 approved already? 7 MR. PAVAO: Yeah, that one last month and 8 this one. All of them. 9 CHR. ONO: I don't think you can do that. 10 It's been acted on. 11 MR. PAVAO: No, I don't think it would be 12 taken away. Example: January, you get the pro rata 13 month's pay for whatever was approved, but in February, 14 should we decide something, it can be different. You 15 can't take away the January one already; that's a done 16 deal. 17 MR. BRILHANTE: That's exactly correct. What 18 happens on January lst, without any future action, you 19 know, taken today, is that the raises are going to be 20 processed, and they will be implemented on January lst. 21 If you have a meeting, it would not actually come into 22 effect until January 15th, because the individual would 23 have to work the first pay period of January, which is 24 the lst through the 15th, and then the effective pay 25 would be, you know, in their paycheck on the 15th. So ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 90 1 that's going forward. You know, at this point in time, 2 there's nothing to change that. There's no action on 3 the table; so legally that can't be amended. 4 So, what Mr. Pavao is proposing, I'm 5 assuming -- and please correct me if I'm misstating 6 your desire -- that he would like to, at the next 7 meeting, have a discussion regarding a revision to the 8 implementation of the pay, but the pay will already be 9 implemented. 10 MR. PAVAO: Right. 11 MR. BRILHANTE: So, going forward, what would 12 then happen is if this Board decides to change the 13 effective date of the originally approved pay raises, 14 then we would have to set a date, and at that next 15 date, it would be an adjustment in the pay. 16 MR. PAVAO: Either a date or method of 17 payment, you know, like a pro rata method or something. 18 MR. BRILHANTE: Yeah. However, you know, you 19 go about doing that, they will actually -- the effect 20 of that action would be an adjustment in the pay of the 21 affected individuals. 22 MR. PAVAO: Yeah. 23 CHR. ONO: I see nothing wrong with that. 24 It's just whether, as a commission as a whole, we vote 25 to do that or not. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 91 1 So, I don't have any objection to putting that 2 as an agenda item for the next meeting. 3 MR. PAVAO: Thank you. 4 CHR. ONO: As well as having the Finance 5 Department here, right? 6 Okay. Any other items for the next meeting? 7 If not, let's look at a meeting date for the next 8 meeting. Can we go either January -- Wednesday, 9 January 24th or Wednesday, January 31st? 10 MS. IKEDA: I can't come the last week of 11 January. 12 CHR. ONO: Is the 24th okay? 13 MS. IKEDA: 24th is fine for me. I don't 14 know about the rest of them. 15 MR. CAMPBELL: 24th doesn't work for me. 16 MR. BRILHANTE: Just for the record, January 17 24th we would be conflicting with a council meeting, 18 but it's set for Kona, so we're going to see if they 19 use this room -- 20 MR. CAMPBELL: They use this room. 21 MR. BRILHANTE: -- use a different room. 22 Glynis is looking -- the assistant is looking 23 to see if January 31st this room will be available. 24 CHR. ONO: Okay. 25 What was the availability of the ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 92 1 commissioners on this -- George, did you say -- 2 MR. CAMPBELL: I'm okay on the 31st but not 3 on the 24th. 4 MS. SELF: Glynis, does it have to be this 5 room? 6 MS. YAMADA: I guess, because of the amount 7 of people -- 8 CHR. ONO: It may not be the 24th or the 9 31st. 10 MS. IKEDA: Yeah, I can't make it. 11 MS. YAMADA: I could secure other rooms, but 12 I would have to check with the other departments. 13 CHR. ONO: Let's look at our calendars 14 again. 15 17th? 16 MR. BRILHANTE: We have a -- 17 MR. CAMPBELL: 17th works for me. 18 MR. BRILHANTE: We already have a Merit 19 Appeals Board meeting. 20 MR. FRATINARDO: Mr. Chair, I have a 21 question. When does the issue of voting for a new 22 Chair and a Vice -Chair come up? 23 MR. CAMPBELL: Next meeting. 24 CHR. ONO: I'm sorry, I don't know the 25 answer to that question, Tom. ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Page 93 1 MR. FRATINARDO: Yeah, and not to -- 2 CHR. ONO: No, no, no. 3 MR. FRATINARDO: Yeah, just wondering -- 4 because it's a new calendar year. I was just 5 wondering, does it happen in a new calendar year? 6 CHR. ONO: Good question for Amy. 7 MS. SELF: I'm looking at the Rules right 8 now. 9 CHR. ONO: But, in the meantime, while Amy 10 is looking at that, looking for a date. 17th does not 11 work. It needs to be on a Wednesday? 12 MS. IKEDA: No. Any day is fine for me. 13 MR. HIGGINS: Not for me. Can be any day. 14 MS. IKEDA: Yeah. 15 MR. BRILHANTE: Mr. Chair, I just conferred 16 with our staff, and if we set the meeting for January 17 31st, we can make the location to be determined, so we 18 could -- 19 MS. IKEDA: Yeah, I -- 20 CHR. ONO: Florence is not here. 21 MR. BRILHANTE: I take that back. 22 CHR. ONO: I would like the Vice -Chair to 23 be at the meeting. She has items of interest to her. 24 MR. CAMPBELL: How about the 18th or the 25 25th? ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Page 94 MS. IKEDA: I can't make it on the 25th. CHR. ONO: 18th? MR. HIGGINS: 18th is good for me. CHR. ONO: 18th? Okay, looking at 18th. And the site to be determined by the Department of Human Services. Okay. The meeting will be here on the 18th. MR. HIGGINS: 18th. MS. IKEDA: 10:00 a.m. MR. HIGGINS: Very good. CHR. ONO: Yeah, 10:00 a.m. I think we should be able to get through that. Starting time. Do you want to start earlier? What is the feeling of the commission? MS. IKEDA: It's up to them. CHR. ONO: You know what happens. The testimonies take quite a bit of time. MR. PAVAO: 10:00 a.m. works fine for me because of the traffic. MR. CAMPBELL: 10:00 is good coming from the other side. CHR. ONO: This isn't too bad. We're 23 only 15 minutes over. 24 Okay. So it will be January 18th in this 25 County Council Room at 10:00 a.m. Okay? ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 95 With that, I entertain a motion to adjourn. MS. IKEDA: I so move. CHR. ONO: Moved -- MR. PAVAO: Second. CHR. ONO: Moved by Florence, seconded by Milton that we adjourn. All those in favor say "Aye." (All Commissioners responded affirmatively.) CHR. ONO: And off the record. (The meeting concluded at 12:16 p.m.) ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 STATE OF HAWAII ss. COUNTY OF HAWAII Page 96 I, TERI HOSKINS, a certified court reporter in the State of Hawaii, do hereby certify that the foregoing pages are a true and correct transcription of the proceedings in the above matter. Dated this 28th day of December, 2017. Tj/i ;K-osAitd, CSR No. 452 ISLAND COURT REPORTING & TRANSCRIPTION SERVICES (808) 933-9800 Ms. Teri Hoskins, Certified Court Reporter, transcribed the aforementioned proceedings of the Salary Commission at its meeting held on December 21, 2017. Glynis Yamada, Secretary, Salary Commission, had incorporated some minor formatting/housekeeping revisions throughout the transcript. (Note: Also present at the meeting were: J Yoshimoto, Craig Masuda, Renee Schoen, John Callahan, William Takaba, Sidney Fuke, Susan Lee Loy, and Abraham Sadegh.) Respectfully Submitted, /Arid i Glynis Yamada, Secretary APPROVED: 1101101 Hugh Y. Ono, P. E., Chair Salary Commission PUBLIC STATEMENT REGISTRATION FORM SALARY COMMISSION COUNTY OF HAWAII HILO, HAWAII Date: /-2A / 7/ 7 (Please print clearly) Support Oppose Comment Please list the item(s) you will be speaking on: Communication No. // OR 4---e Subject/Topic: (`4 4 � 'l `��'`��-� =� 2�- �y / Z Name: C,ct,f(cthavi �l v��'� Representing: / a �'� i%i 641-/i2-07 7)e-e--A-6 ,tom-�✓ � ( o-i (,.se indicate whether Self or Organization) otic ***For official use only: Speaker No. IF PUBLIC STATEMENT REGISTRATION FORM SALARY COMMISSION COUNTY OF HAWAII HILO, HAWAII Date: 2� 1 (Please print clearly) Support Oppose Comment Please list the item(s) you will be speaking on: Communication No. OR Subject/Topic: IA Qi Od C up V 1 i d (wiilra n Takaba) (s1'dtey F tke,) PIJ L tC 1—/ ,c / 1°N Name: , I, �✓ Representing: 3bi' "5 (Please indicate whether Self or Organization) ***For official use only: Speaker No. is w PUBLIC STATEMENT REGISTRATION FORM SALARY COMMISSION COUNTY OF HAWAII HILO,HAWAII Date: �` oZ \i\ (Please print clearly) Support Oppose Comment Please list the item(s) you will be speaking on: Communication No. OR Subject/Topic: C1\-Q..3,02;1. \ 4: .&Name: Representing: Please indicate whether Self or Organization) ***For official use only: Speaker No. d PUBLIC STATEMENT REGISTRATION FORM SALARY COMMISSION COUNTY OF HAWAII HILO,HAWAII Date: !,4 • 1,eQ , 211 2617 (Please print clearly) Support Oppose Comment Please list the item(s) you will be speaking on: Communication No. OR Subject/Topic: Sa larit S Name: n 4 a si t rn Mr. !' 401 Ssdej Representing: Thy tih;;i+rsa I Res im al e Lep•- ,r4/snj 4 ,-y 'se indicate whether Self or Organization) / ***For official use only: Speaker No. re William Takaba 1200 Malawaina Place • Hilo, HI 96720 • home: (808) 959-6785 • Cell: (808) 339-1830 December 21, 2017 Honorable Hugh Ono, Chair Hawaii County Salary Commission 25 Aupuni Street Hilo, HI 96720 TESTIMONY OF WILLIAM TAKABA RE: LIQUOR CONTROL DIRECTOR Chair Ono and Members of the Hawaii County Salary Commission: Good morning. My name is William Takaba, former Finance Director, Managing Director, and current Chair of the Liquor Commission. With me is Sidney Fuke, former Planning Director and Chair of the Liquor Control Adjudication Board. Thank you all for serving on this very important Salary Commission, and for taking on the task of ensuring that elected officials and top administrators in Hawaii County are fairly compensated—where salaries and benefits have a reasonable relationship to the public and private sectors. When we speak of the public sector, it should include, besides Hawaii County, other jurisdictions in the state. We are here this morning, as private individuals, to provide testimony on the salary of Hawaii County's Liquor Control Director. The Liquor Control Director("Director") heads the department that is responsible for the regulation and control of the importation, manufacture, sale, and service of alcoholic beverages through the enforcement of liquor laws and rules. The Department of Liquor Control ("Department") derives its funds through its own sources and is responsible for not only the collection, but the budgeting and administration of those funds, similar to the Department of Water Supply. No county tax revenues are used to fund the Department or its operations. It has a budget of about$2 million. The Department provides staff and other support to the Liquor Commission and Liquor Control Adjudication Board. The Director is appointed and evaluated by the Liquor Commission. As members of the Liquor Commission and Liquor Control Adjudication Board for many years, we know that the best qualified director must have a clear understanding of how laws and rules are administered, and can make sound decisions based on this understanding. The Director must be able to work with its 400 licensees and the general public to make sure that laws are fairly and efficiently applied. Although not a requirement, 5 of the 8 top Liquor Control administrators in this state have law degrees, including Hawaii County's Director, Gerald Takase and his Administrative Officer, Brandon Gonzalez. This pretty much speaks to the complexity of the work of Liquor Control directors statewide. ATT. A Hugh Ono,Chair and Members of the Hawaii County Salary Commission Page 2 December 21,2017 The current salary of the Liquor Control Director is $99,000 per year, far lower than his counterparts with similar responsibilities on other islands: Honolulu Liquor Control Administrator $153,000 Maui Liquor Control Director $132,000 Kauai Liquor Control Director $109,000 The Director in Hawaii County earns $10,000 per year less than his counterpart on Kauai, even though his service area is over 7 times larger, his budget is 2 times bigger, and the number of licensees that he serves and regulates is twice as large. We wholeheartedly subscribe to the idea that bosses should not be paid less than their subordinates. However, consideration should be given not only to how much the highest paid employee in the department is making, but also how much an employee in the department can potentially earn. In the case of the Liquor Department, the Administrative Officer, as an EM-03, can earn up to $127,284, which is far more than what the Director earns. Had the previous Administrative Officer not retired last year, his pay would have been very close to the Director's. But because he retired, the Director's ability to receive the salary increase he deserves is somewhat diminished. This is a situation where timing and coincidence often become factors in how much an administrator earns. In conclusion, we suggest that in determining the salary of Hawaii County's Liquor Control Director, consideration be given to the following: • The complexity of the work the Director must perform; • How the Director's current salary compares to the salaries of directors in other jurisdictions; • The amount the highest paid employee in the department can potentially earn; • Based on the above, increasing the Director's salary to at least $115,000 per year and for the future, working with the Liquor Commission when setting the salary of the Director; and • Scheduling pay adjustments for elected officials and top administrators on the same frequency as civil service employees to avoid getting into similar pay inequities in the future. Thank you for this opportunity to testify on this very important matter. Sincerely yours, William Takaba TESTIMONY BEFORE THE HAWAII COUNTY SALARY COMMISSION SIDNEY M. FUKE December 21, 2017 Good morning Chair and members of this Commission. I would like to initially clarify that we are testifying here not as representatives of the Liquor Commission or Liquor Adjudication Board but as individuals and citizens of this County. Although testifying as individuals, we would appreciate your taking into consideration the experience and insights welhave gained as Chair of those respective bodies. Albeit somewhat redundant of Bill's testimony, I would like to highlight certain facts for your consideration. 1. Approximate Budget and Number of Licensees of All Four Counties • County of Kauai - $1,000,000; 200 licensees • County of Hawaii — $2,000,000; 400 licensees • County of Maui - $4,000,000; 400 licensees • City and County of Honolulu - $10,000,000; 2,000 licensees In terms of number of licensees, Hawaii is comparable to the Maui. The budget of Maui is larger, however, due in part to varying fees, assessments and the like, as well as higher operating expenses in having to service the three island county. 2. Functions and Roles of Director of All Four Counties • Kauai and Honolulu counties have only one body (Commission) that issues licenses and adjudicate on violations. • Maui and Hawaii counties have two bodies to handle those tasks (Commission and Adjudication Board) ATT. B While it may seem to be more efficient and less costly to have only one body, the approach as reflected in the charters of Maui and Hawai'i counties is to have two bodies. In so doing, the framers of our charter— as ratified our citizens — believed that there would be greater impartiality in dispensing justice, inasmuch as the Adjudication Board is like an Appeals Board or your court. Relative to salary, the point here is that like Maui County, Hawai'i's Liquor Director must administer two instead of one board or commission. 3. Organizational Setback of All Four Counties • Maui and Honolulu counties have a Director and Deputy Director • Kauai and Hawai'i counties do NOT have a Deputy Director. Maui, with its 400 licensees, has a Deputy. Hawaii does not. Almost all departments in Hawai'i County have a deputy, including the Planning Department which administers commissions and an appeals board. The absence of a deputy translates to greater burden on the director. 4. Salary • Honolulu - $153,000 • Maui - $132,000 • Kauai - $109,000 • Hawaii - $99,000 In conclusion, given the above, a reasonable salary should be more than Kauai ($109,000) and closer to Maui ($132,000). However, considering action already taken by the Commission, I believe that it should be comparable to the Planning Director. Thank you very much. Hany Kim 'air os . William V.Brithante,Jr. Mayor ckk • ••yr, Acting Director pitman Resources � 'N.:4;':/;:71.1 /i/f 7 w': O • =n V �O z 3� County of Hawai`i Department of Human Resources Aupuni Center.101 Pauahi Street,Suite 2.Hilo,Hawaii 96720. (808)961-8361+Fax(808)961-8617 n^^ website:http://finwaiftounty.gm/hiunan-resources e-mail jobs@hawaiicourtty.gov J D rn D W 07— TO: Hugh Y. Ono, P.E., Chair and Salary Commission Members FROM: William Brilhante, Jr., Acting Director of Human Resources DATE: November 30, 2017 RE: Approved Salary Increases with Payroll Adjustments and Total Cost of Increases Attached is the updated spreadsheet of the salary increases approved by the Salary Commission at the November 27, 2017 meeting effective January 1, 2018. Our office made a few adjustments to the proposed salaries in order for the annual salaries to divide evenly into 24 pay periods. The new salaries are reflected in column 11 of the spreadsheet. Column 12 is the amount of the increase for each position, with the total amount of annual increases at $492,312. Total cost for the remainder of Fiscal Year 17-18 will be $246,156. cc: Harry Kim, Mayor Deanna Sako, Finance Director ATT. 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I.L. 0 0 2 D 00 0 = a a. 0.0 DcC cc cc cc o 0 SALARY COMMISSION -October 2017-June 2018 EXECUTION PLAN DESCRIPTION OF ELEMENT: I DESCRIPTION OF ACTION: ITIME ALLOWED:I DATE COMPLETED: I REMARKS: PROCEDURE PHASE: OIP BRIEFING: Do's and Don't's 10/27/2017 COMMUNICATION PROTOCOL: Briefing and Discussion on How and Why? _ 10/27/2017 As req by DHR MEETING SITES: Discuss Hilo Only or Other Locations? 10/27/2017 Future Mtg in Kona EXECUTION PLAN Discuss and adopt. 10/27/2017 TB used as a Guide TIME&SCHEDULE: Agree on a scheduled competion date: ASAP 2 parts-Now and Later By PIG(Permitted Interaction Group)or 10/27/2017 No MISCELLANEOUS: By Entire Salary Commission? 10/27/2017 Yes DISCOVERY PHASE: COUNTY CHARTER: What the Charter says? 10/27/2017 HAWAII REVISED STATUTES: What the HRS says? 10/27/2017 PROBLEM IDENTIFICATION: Identify the problem and where occurs? On-going COLLECTIVE BARGAINING: Identify Impacts if any? 10/27/2017 Agreement thru 2019 EXCLUDED MANAGEMENT: Identify details,impacts,etc.? 11/27/2017 Listing by Deparment&Levels 11/27/2017 CURRENT SALARIES: Identify Inversions? 11/27/2017 Date of Latest Changes: 11/27/2017 PAST SALARY COMMISSIONS: See what previous to include DWS did? 11/27/2017 Impact of Overtime by Subordinates? 11/27/2017 MISCELLANEOUS: Respect from Subordinates making more? 11/27/2017 Any other factors? 11/27/2017 By 12/31/2017 DEVELOP OUR CRITERIA: METHODOLOGY: Open discussion on various approaches. 11/27/2017 Identify preferred criteria? 11/27/2017 PRIORITY BY POSITIONS: Determine All or Separately? 11/27/2017 SALARY PERIOD: One time or able to adapt to future changes? 11/27/2017 In 2 Steps-Tier I&II CRITERIA: Identify Quantitative Difference being sought? 11/27/2017 _Identify Intent and Impact being sought? 11/27/2017 Comparable,Fair&Equitable PROBLEMS 8c CHALLENGES: Identify Potential problems? 11/27/2017 Identify Potential Challenges? 11/27/2017 FINANCIAL COST IMPACTS: Identify cost to the County of Hawaii? On-going By 1/15/2018 ALTERNATIVE ANALYSIS: SALARY SETTING: Set by Commission established criteria. On Agenda Utilization of Pay Schedules in Existence? On Agenda EFFECTIVE DATE: Determine date and if Retro-active or not? 11/27/2017 SHORT LISTING ALTERNATIVES: Determine preferred alternatives? 11/27/2017 FINAL ANALYSIS SELECTION: Determine final selection. On Agenda By 5/15/2018 ADOPTION: VOTING PROCEDURE: Identify that procedure. On-going FINAL ADOPTION: Final Vote On-going By 6/30/2018 ATT. E TALKING PAPER: SALARY COMMISSION ACTION LEADING TO: APPROVED SALARY CHANGES OF: MONDAY, NOVEMBER 27, 2017 ACTION OCCURRING: DESCRIPTION OF ACTIONS: COMMENTS OR NOTES: * Quorum Finally in place * Effort to fill vacancies since February 2017. * 1st Salary Commission Meeting w/Quorum *Wednesday,October 11,2017 * Hugh Ono&Florence Ikeda elected Chair and Vice Chair respectively. EVENTS LEADING: * Friday,October 27,2017 *2nd Meeting-Testimony received;Informational Briefing by HR& Corp Counsel. * Monday,November 27,2017 * Discussion on Proposed Salary adjustments. *Approval of Priority A&B Position Salary Adjustments. *Thursday, December 21,2017 *Next Salary Commission Meeting. *What State Law Says? *As briefed by the Corporation Counsel. LAW BACKGROUND: *Section 13-28:says"shall have a reasonable relationship to *What the County Charter Says? compensation in the public and private sectors". * * Include:Elected,Appointed Department Heads and Deputies. 36 Positions under this Commission *Current Salaries as of now available to * Includes: Inversions as well as none earn Overtime. Commission. * Positions that are Salary Inverted. * Identified:By Position,%of Inversion w/o Overtime Pay * * Recruitment at these levels negatively affected by"no interest". Positions w/Salary Inversions affected. Particularly"Police"and"Fire"Departments. *Salaries of Private Sector Equivalent *Provided to the Salary Commission. FACTS: Positions. *Salaries of other County Counter Parts *Provided to the Salary Commission. *Salary Information of Collective *As provided by County of Hawaii Department of Human Resources. Bargaining&Excluded Management Positions provided. * Regularly work long hours(well over 50-60 hrs per week)in the name of professionalism. *Testimony by Some *Great Training for less experienced,and a"great loss"to the County of Hawaii when they leave because of the poor salaries. *A-Inversions; B-Long Time w/o any Salary Increase;C-Must be * Priority Established addressed next. *Tier I-Need immediate attention to correct inversion and other deficiencies. *Commission decides: Tier I&II *Tier II-Need to address changes to these Salaries as changes to Collective Bargaining and Excluded Management occur in the future. ACTIONS TAKEN: * Director testifies that once Salary Commission decides,that is considered final. *County of Hawaii Finance *County of Hawaii has obligation to"make the pay adjustments by adjusting the operating budget. *Call Nancy Mahoney @ 896-2266-Public * By H.Ono on 12/2/17;Satisfied with explanation. Inquiry. APPROVAL: *Salary Increases Approved. *6-2 Vote for Priority A&B Positions. * Effective Date Approved. *8-0 Vote,effective date: January 1,2018. ATT. F Aaron S. Y. Chung °M���F��"+ Phone No.: (808)961-8272 • �y6il Council Member �'�� Fax No.: (808 961-8912 aaron.chung@hawaiicounly.gov District 2 South Hilo .:����'�.��:► ) _ ,,�,_ HAWAII COUNTY COUNCIL County of Hawai`i Hawai`i County Building 25 Aupuni Street Hilo, Hawaii 96720 Date: December 20, 2017 To: Hugh Ono, Chair Florence Ikeda, Vice-Chair And Members of the County of Hawai`i Salary Commission Subject: Salary Increases for Department Directors and Deputy Directors Please accept this written testimony regarding the pay raises for department heads approved by your commission on November 27. I would have preferred to appear before you in person but will be off island when you convene your December 21 meeting. I sincerely respect the hard work and thought that all of you put into framing a salary arrangement for department heads and deputies which conforms to the guiding principles contained in the Hawai`i County Charter—which is to establish the pay for those employees by examining their relationship to compensation in the public and private sector. However, as a Hawai`i County council member, I have a duty to look after the broader interests of the county, and in that regard, I will say that some of the raises decided upon by the commission are way too high, the length of time since the last raises notwithstanding. Before going further, and just so that all of you have a full understanding of where I'm coming from, let me say that over my eleven years on the council, I have been a staunch and vocal supporter of fair compensation to all of our employees. About two months ago, I introduced a resolution urging an increase in the pay for Fire Department battalion chiefs. Two weeks ago, I suggested, as I have for many years,that we should consider allowing department heads and deputies to earn overtime. Going back much further, I would often criticize those on the council who were consistently opposed to approving the recommendations of the salary commission, by saying: "You say it's not the right time for raises when the economy is good, and not the right time when it is bad. Then, when is it the right time!?" Indeed, the roadblocks put up at the council level back then were the primary impetus for the voters of our island approving a charter amendment which put the sole responsibility for setting certain county salaries with the salary commission. Having said that, let me discuss some of my concerns. First, although the commission is not required to consider external factors, such as the county budget, it does not mean that they must ATT. G Hawai`i County Is An Equal Opportunity Provider And Employer December 20,2017 Salary Commission Page 2 ignore those factors altogether. In other words, the salary-setting process should not be done in a vacuum. The reason is simple: The determination made by the commission is final and binding. There is no further approval process. There is also no appeals process. Very few decisions made by government carry that level of binding authority. Some of the things which the commission might consider are that: 1. The county just raised property taxes effective this current fiscal year. It was necessitated by several high ticket operational costs, including but not limited to salary and health fund increases. This coming fiscal year, we are looking at paying more in union negotiated salary increases, with that of police officers coming immediately to mind. The raises for department heads and deputies, and possibly those for elected officials, will further increase our budget by close to a million dollars; 2. The commission should not feel compelled to play salary catch-up. If prior salary commissions saw fit not to increase particular salaries, some degree of deference to their decisions should be taken into consideration; 3. There has been no showing that the current salaries are a factor which limits the available pool of qualified applicants for department head jobs. I am not aware of either the mayor or the council chair urging for increases in salaries on that basis. 4. The huge increases for some of the department heads and deputies, one year into their term, is, quite frankly, discourteous to those that just left their positions under the previous administration and did a fine job over a longer period of time. 5. The morale of our rank and file employees is vitally important. County government is a service organization. In that regard, our employees are our most important resource. It is difficult to explain to them a$42,000 raise for one individual. And believe me, we have had to explain that to a large number of people. I would guess that many of our full-time employees make less a year than the amount of that raise. I humbly suggest that you modify your decision. No one I know of is against reasonable pay increases for workers. However, I think the prudent approach to all of this is to phase the increases in gradually, or go along the lines of the 12-13% increases approved for some of the other positions. In closing, I would mention that if any position needs a large increase, it should be the Finance Director. That position oversees a department which serves as the lifeblood of our entire operation. We need to ensure that we have highly competent individuals filling that position. I thank you for your time and consideration of my thoughts. Sincerely, AARON CHUNG Hawai`i County Council