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HomeMy WebLinkAbout10-27-2010-Doc15841• COUNCIL MEETING October 27, 2010 The Council Meeting of the Council of the County of order by the Council Chair at the Council Chambers, 3371-A Kauai, on Wednesday, October 27, 2010 at 11:04 a.m., after members answered the call of the roll: Honorable Tim Bynum Honorable Dickie Chang Honorable Jay Furfaro Honorable Daryl W. Kaneshiro Honorable Lani T. Kawahara Honorable Derek S.K. Kawakami Honorable Bill "Kaipo" Asing, Council Chair Kauai was called to Wilcox Road, Lihu`e, which the following Chair Asing: Can we have the first item please? Mr. Nakamura: First item is approval of the agenda. APPROVAL OF AGENDA: Mr. Furfaro moved for approval of the agenda as circulated, seconded by Mr. Chang, and unanimously carried. Chair Asing: Next item please. Mr. Nakamura: Next matter is approval of the minutes of the following meetings of the Council. MINUTES of the following meetings of the Council: Council Meeting of October 13, 2010 Public Hearing of October 13, 2010 re: Bill No. 2376 Mr. Furfaro moved for approval of the minutes as circulated, seconded by Mr. Chang, and unanimously carried. Chair Asing: Next item please. Mr. Nakamura: Next matters are communications for receipt on page one (1) of the Council's agenda, communication C 2010-285, C 2010-286 and C 2010-287. COMMUNICATIONS: C 2010-285 Communication (10/04/2010) from the Chief, Building Division, Department of Public Works, transmitting for Council information, the Building Permit Reports for September 2010: 1) Building Permit Processing Report 2) Building Permit Estimated Value Summary 3) Building Permits Tracking Report 4) Building Permits Status • 2 • COUNCIL MEETING October 27, 2010 Mr. Chang moved to receive C 2010-285 for the record, seconded by Mr. Kaneshiro, and unanimously carried. C 2010-286 Communication (10/06/2010) from the Chief, Engineering Division, Department of Public Works, transmitting for Council consideration a traffic resolution establishing no parking at any time along portions of Haleilio Road and Apana Road, pursuant to the condition contained in Use Permit U-2008- 18, Variance Permit V-23008-6, and Class IV Zoning Permit Z-IV-2008-19, that establishes an off-street parking lot away from the primary place of business situated at TMK: 4-1-005-007 (Kayak Wailua LLC): Mr. Chang moved to receive C 2010-286 for the record, seconded by Mr. Kaneshiro, and unanimously carried. C 2010-287 Communication (10/07/2010) from the County Auditor, requesting Council approval to establish two (2) new positions, a Program Audit Analyst V and a Program Support Technician in the Office of the County Auditor, and to amend Ordinance No. B-2010-705, relating to the FY 2010-2011 Operating Budget, by revising the surplus and appropriations estimated in the General Fund, by appropriating $90,211.00 to the Office of the County Auditor to fund these positions, associated personnel costs, and necessary office equipment: Mr. Chang moved to receive C 2010-287 for the record, seconded by Mr. Kaneshiro, and unanimously carried. Chair Asing: Next item please. Mr. Nakamura: We're on page two (2) of the Council's agenda, we have communication for receipt at the top of page two (2), C 2010-288. C 2010-288 Statement of Condition of the County Treasury as of August 30, 2010: Mr. Chang moved to receive C 2010-288 for the record, seconded by Mr. Kaneshiro. Chair Asing: Any discussion? Mr. Furfaro: Yes. Chair Asing: Yes. Mr. Furfaro: Yes Mr. Chair, I want to remind the treasury that it is, we did get a commitment from them that quarterly they would be available to us... it looks like the September report, so we can have some Q&A on our earning power in those accounts. Chair Asing: Thank you. Mr. Furfaro: So I would like to remind them of the next report? Chair Asing: Why don't we send a communication to that effect. With that, any further discussion? If not, all those in favor say aye? Councilmembers: Aye. Chair Asing: Motion carries. Next item please. • 3 COUNCIL MEETING October 27, 2010 The motion to receive C 2010-288 for the record was then put, and unanimously carried. Mr. Nakamura: Next matter is communication C 2010-289. C 2010-289 Communication (10/15/2010) from Councilmember Bynum, requesting that the County Auditor be present at the October 27, 2010 Council Meeting to discuss his proposed work plan (proposed audits) for Fiscal Year 2010- 2011. Chair Asing: With that, I'd like to suspend the rules. There .being no objections, the rules were suspended. Chair Asing: Councilmember Bynum. Mr. Bynum: Good morning Mr. Pasion, thank you very much for being here today. And the County of Kauai (the voters) created the Office of the Auditor. We've hired an Auditor, he's filling out his staff and presented a work plan to us in July, I believe dated June 28, and I wanted to have this opportunity for the Council and members of the public to have some awareness about what the Auditor's plans are for the coming fiscal year and see if any of us have questions. So I appreciate you being here today, Mr. Pasion. Chair Asing: With that. ERNESTO G. PASION, COUNTY AUDITOR: Chair Asing and Councilmembers, good morning. For the record County Auditor Ernesto G. Pasion and with me are the members of the audit team, Lani Nakazawa and Ron Rawls. Thank you for inviting me here to discuss the County Auditor's fiscal year 2010- 2011 work plan. The five (5) audits that are in fiscal year 2010-2011 are... the work plan were taken from about twenty (20) potential audit topics, identified as possibilities from suggestions by elected officials, employees, and citizens and from research into audits conducted in other jurisdictions. Using a risk assessment matrix, we prioritized the audits taking into consideration such factors as the money effect of the audit subject on the county, whether the audit subject was a high risk area, whether the audit scope was manageable, and whether we had appropriate resources to conduct the audit. Section 32.02 sub (a) sub (3) of the Kauai County Charter requires that before the commencement of each fiscal year, the plan of the audits proposed to be conducted by the County Auditor during the fiscal year shall be' transmitted to the County Council for review and comment, but not approval. I filed the work plan for fiscal year 2010-2011 with the Council on June 29, 2010. July 1, 2010, the Council Chair requested the Councilmembers review the plan and provide any comments by July 14, 2010. Citizens are understandably concerned about whether the county is doing everything that it can to keep risks and costs under control. The work plan is intended to provide factual information about county programs to assist the county in avoiding inefficiencies and risks in its programs and practices. One of the five audits involved the review of capital project implementation. We will be using two test projects to determine one, if project management plans and good management practices were followed. Two, whether the responsibilities were performed. Three, whether the communication processes were effective? Four, whether management processes to address risk and scope change 4 • COUNCIL MEETING October 27, 2010 were followed. And five, were the budgets and schedules effectively managed. The test projects are one, a road maintenance project for prior year, and two, Kaiakea Fire Station construction project. These projects were selected because they are relatively high costs projects. We will be analyzing implementation of the test projects, identifying successes, and making recommendations when necessary. We will also determine whether the concerns in the prior audit, the very first performance audit done in the county, which was conducted by an outside audit firm involving another capital project, the Kilauea gym, had been addressed. In order to secure the technical analyses needed for this audit, we conducted a competitive procurement for engineering consulting services. Another audit will also use a test sample of County departments to evaluate the County's budget process to determine whether estimated revenues are being accurately calculated and whether projected expenditures are realistic. We will also review the County's procedures for seeing if departments are within budgets, are reporting differences or variances, and are investigating whether action should be taken. This will require the analyses of the Comprehensive Annual Financial Report of the County for the last five (5) years. Finally, we will compare the County's budget practices with the Government Finance Officers Association's Recommended Budget Practices to recognize the areas where practices are being followed and identify opportunities for improvement. Another audit will evaluate the internal controls designed to make sure fuel consumption is authorized and used for valid County business purposes. Additionally, the audit will review the County's procedures for monitoring fuel consumption and costs, including identification and investigation of unusual charges. Fuel costs for the County are significant and fuel is a commodity that is susceptible to theft. Accordingly, fuel consumption should be prudently managed and controlled. I would like to note one benefit of a permanent audit presence in the County means that management can be reminded of its commitment to implementing recommendations to improve effectiveness and efficiency. In another audit, we will be checking to see whether the County has implemented the recommendations for reducing energy costs by the Cost Control Commission, in 2008 and 2009, as well as the recommendations in the 2007 administration study on energy costs. The last audit in our fiscal year 2010-2011 work plan is an audit on the effects of the County's partial hiring freeze, which began in December 2008. Our objectives in this audit are to find out whether the monetary savings expected from the hiring freeze have been achieved and whether any internal controls are being affected because positions providing checks and balances are not filled. Quantifying the results of the partial hiring freeze provides information for county decision makers and the public about the effectiveness of the freeze. Assessing the effects of the freeze on internal controls should also be of interest to our County leaders since they, like the heads of corporations, are expected to take responsibility for making sure internal controls are in place to prevent fraud and abuse. We plan to complete three (3) to five (5) performance audits during the fiscal year, subject to any changes that might be made because of audit risk.. Factors that may affect completion of audits include .unforeseen conditions that impair our ability to conduct a complete audit, such as the availability of necessary records. • ~ COUNCIL MEETING • October 27, 2010 In addition to the performance audits, an independent financial statement audit will be conducted by a CPA firm. The audit consists of the overall financial audit of the County and the Single Audit of federally-funded programs. The work plan also includes two (2) pre-audits assessments. Pre-audit assessments are conducted to generate information and ideas to better understand the audit subject area, develop the audit objectives, and assess audit risks. One (1) pre-audit assessment will concern an audit that will look into how the conditions imposed by the Planning Commission as prerequisites to approvals are monitored and enforced. The second pre-audit assessment was requested by the Cost Control Commission, and will look into an audit regarding the feasibility of consolidating personnel functions. We are also planning anon-audit project during fiscal year 2010-2011. This non-audit project is acitizen-friendly report that summarizes the results of the consolidated annual financial report of the County's financial condition in non-technical language. The project is intended to fulfill another role the County Auditor can play educating the community about the costs, achievements, and challenges of our County. Your support of the audit work plan for the fiscal year 2010-2011 is greatly appreciated. Thank you. Chair Asing: Thank you. With that, Councilmember Bynum. Mr. Bynum: So, you're Chairing this yeah? Chair Asing: Yes. Mr. Bynum: Okay. So thank you very much Ernie for making this presentation. I just wanted to maybe ask a few questions and highlight a couple of the things, just make sure I have it right and that the community understands. In your presentation, you said that you had recommendations or suggestions, over twenty (20), for different areas that the Office of Auditor could focus on? Mr. Pasion: Yes. Mr. Bynum: And you made your selection from those suggestions and also, from your own research into what other audit departments are doing. So I just, for my understanding of your offices, that it's independent that Councilmembers, members of the public, Cost Control Commission, whoever, can make suggestions to your office, but the final decision of what you choose to audit is yours. Do I have that correct? Mr. Pasion: That's correct. Mr. Furfaro: Excuse me, Mr. Bynum... He said something I just want to make sure we're clear on because you didn't cover in your question, this body by Resolution can mandate something to be added. Mr. Pasion: Well through a Resolution, for example... • 6 • COUNCIL MEETING October 27, 2010 Mr. Furfaro: That's what I just said... by Resolution. Mr. Pasion: For example if a... members of the community has concerns about a particular issue, they would... one way they could have it part of our audit included would be they would work with one (1) or two (2) of you in the Council, okay? Because you are elected by them, by us, to represent them and then they would work with one (1) or two (2) of you to introduce a Resolution regarding an issue and then you know if the Resolution is passed then that item would be included in the, it would be one (1) of those that would be included in our work plan. Okay and that's in addition to what we consider in our office to be of critical issue to be part of our audit work plan. Mr. Bynum: Right. So with the suggestions that you receive from various sources, your office makes a decision what to audit. Additionally to that if the majority of the Council passes a Resolution then your office would be required to address that audit issue. Is that correct? Mr. Pasion: That's correct. Provided that we get the adequate resources to do such an audit. Mr. Bynum: Right. Mr. Furfaro: Thank you Mr. Bynum for letting me clarify that. Mr. Bynum: Mr. Furfaro: Okay, sure. We can initiate an item. Mr. Bynum: But in terms of this work plan, the choices were made from those suggestions right? Mr. Pasion: (Inaudible) Mr. Bynum: That's an important clarification. And that's a good way for democracy to work, right? Mr. Pasion: Right and since there was no Resolution yet, so basically what we put together is like I said coming from the Cost Control Commission and you know from citizens. Mr. Bynum: And then from the plan that you just presented, one of the first things you talked about was the capital improvements implementation of capital improvement projects. Mr. Pasion: Right. Mr. Bynum: I just want to clarify that you chose two (2) about roadways and about Kaiakea Fire Station, but that doesn't mean you're only looking at that, you are using that as a snapshot or mechanism to look at how the programs are implemented, is that correct? Mr. Pasion: That is correct. • 7 COUNCIL MEETING • October 27, 2010 Mr. Bynum: I know one of the initial questions I asked you after we received this plan is why did you pick those and you have answered that today. That they are high-value. Mr. Pasion: Right. Mr. Bynum: But that is a way to look at the whole process, not just those particular projects. Kind of like it is twofold, do I have that right? Mr. Pasion: We would look at how we do things in the County and then look at what our best practices that are being done in our jurisdictions and then we could recommend we adopt best practice used in other jurisdictions to improve our process. Mr. Bynum: And so one of the things that I think we can count on from your office is that when audits are complete, that we'll get a report and there will be a follow-up. So we'll understand the outcomes of the audits, is that correct? Mr. Pasion: That's correct and it will also be a public document. The final audits issued from our office will be published on the website. We have our website available to the public. Mr. Bynum: So there will be disclosure of those reports to the public? Mr. Pasion: Right Mr. Bynum: And I bring that up, because one of my concerns and I have made a request that I know we will eventually fulfill that the auditors who conducted the Kilauea gym audit present at Council to present that because I have a concern that was several years ago and there was a time, until your office was created, wasn't presented to the Council and wasn't presented to the departments. So I think at a future meeting we're going to have the consultants who conducted audits present to us, is that correct? Mr. Pasion: Yes, the last time we checked with them, they were busy with other jurisdictions and the Department of Water audit too is that they didn't have time. They were available before, but right now they are busy. So they will be available the first thing next year. Mr. Bynum: Right and I appreciate that, because there was a lot of public attention about that Kilauea gym audit, a lot of support for doing it, and I heard from Public Works that they went through the audit process and met with auditors and talked to them, and then a couple of years went by and they never got any feedback. I mean the whole purpose of the audit is to say how are you doing, to make recommendation for improvement, and that didn't occur for a long time. So I want to acknowledge like after your office was created that you got that, audit to Public Works, to the intended recipient, so they could see the results of that and why it took that long, I don't understand. But I wanted to thank you for that and let the departments and let the public know that we do audits so we can improve our functioning, and our employees work really hard, and I think do a g COUNCIL MEETING October 27, 2010 really good job, by and large, but there can be some trepidation about instituting audits. It's like somebody looking over your shoulder and saying hey, did you do it correctly? I am sure why the voters overwhelming approved this office because we think it's a good thing. I hope that our employees understand that that is a good thing that it isn't there to necessarily find problems but to help things work more efficiently and to improve our operations. So moving on my questions if that's okay? Chair Asing: Sure go ahead. Mr. Bynum: You mentioned in your presentation today that one of the roles is to see that management does pay some attention to recommendations when they are made, and so you are going to look at the energy consumption, because there were recommendations from consultants? Mr. Pasion: Cost Control Commission. Mr. Bynum: From the Cost Control Commission. Mr. Pasion: Commission, yes. Mr. Bynum: Because I know this Council really supported the other voter initiative over the past few years is the creation of the Boards and Commission office and the Cost Control Commission has real meat to it now, when it didn't in the past. But if they make recommendations, and then they are not followed through, then it's just another paper tiger, so to speak. So I think that is another role. That is what I had hoped today that we can all understand and make sure that my understandings are correct and that the public understands what will we get from having an Auditor. I think it will help increase our County's accountability. Do I have that right? Mr. Pasion: That is correct. Transparency too. Mr. Bynum: And you've given a great example here of that. My last set of questions had to do with in your audit plan that was distributed to Councilmembers in June, one (1) of them was a review and assessment of the county's cost related to furloughs, and in your presentation today talked about one of the other cost controls that we've done about having a partial hiring freeze. One of the things that the Administration did to respond to the changing economic conditions was to restrict new hires, and the Council took action as well in terms of dollar-funding positions in the budget. So basically saying that hey, this position exists, we may need it, but because of these difficult times we're going to leave this position unfilled in order to reduce our costs. So do you still intend to help the Council do a review of the furlough program and its impact on the community and also in the County's budget. Mr. Pasion: Yes. I know there is a budget proviso for the current budget that there will be an evaluation by the Finance Director and Personnel Director about the furlough by the end of this calendar year. And we are not going to be doing anything before then if we don't want to preclude what they are going to do. Our intended audit of that will be more comprehensive, I would say. We looked at the furlough done for the State of California, done by UC Berkeley, and we'll attempt to mirror that kind of audit analysis of our furlough and what was the impact on the local economy. What would be like what they had.. and what would be the savings. Just like what they did in California. They • 9 • COUNCIL MEETING October 27, 2010 thought they had so much savings in the furlough, but they did not achieve such savings. So I would want to go further than that, because we're going to do an audit of it after the analysis of the Finance Director .and Personnel Director. Mr. Bynum: So regardless of whether the Council chooses to continue with furloughs or the Council with the Administration chooses to continue or modify or end, you're going to help us do an analysis of whether the furloughs achieved its objective and the impact on the broader community? Mr. Pasion: We will come out with data that would come from the audit that would show the results of the furlough. Mr. Bynum: So this Council would be able to say compare the hiring freeze proposal with furloughs and see which one was more efficient or that kind of thing? Mr. Pasion: Well the hiring freeze is separate from the furlough, because the hiring freeze was implemented December of 2008 before the furlough took over July 1st of this year. So we'll be looking at the hiring freeze and the impacts on internal controls. For example, let's say if you have a staff of two (2), one is requisitioner and one is approver, and if the approver's position was vacant and say they retired and it was not filled, you have one in position and then you are kind of jeopardizing the controls and subject to things that could be irregular. Mr. Bynum: Just sticking with furloughs for a minute, I know I have a lot of unanswered questions and so I just want to say that I really support that we do an analysis of furloughs in terms of how it impacted overtime. One of my concerns is that we have people on furlough days, but then we have needs that we have to fulfill as a County and we may be paying employees time and a half when they would have been getting straight time if we hadn't done the furloughs. So that is an example. But also, I hear you saying to look at the impact on the broader economy. You know, if you take this many dollars out of the local economy, or if you are an employee and your take home pay is reduced by x amount, how that affects your spending behavior in the private sector as well. So that is part of your analysis as well? Is that correct? Mr. Pasion: That is correct. Mr. Bynum: In closing, I really appreciate you being here today and answering the questions that I had. I could ask a bunch more, but I won't belabor it now but when I read this plan and in my dialog with you, there are so many areas we could look at but in your presentation today, it was very well- balanced. Mr. Pasion: Thank you. Mr. Bynum: You are looking at key areas. You are looking at costs and you are looking at whether we followed through on previous recommendations. That existed, for example in the Kilauea gym audit. I want an overview of that, which I think is very long overdue, to have an overview of that one performance audit we have done prior to the creation of the audit. But you are also using that to say, hey, that audit had recommendations and they have been out • 10 • COUNCIL MEETING October 27, 2010 there a while. Did we follow through? Do we intend to follow through? So that's another element and when I say "balance" you look at it and help to educate us and the public about the potential investment we have made in the Office of the Auditor. So I really like your work plan. Mr. Pasion: Thank you. Mr. Bynum: And I recognize that the thought that went into it. It seems pretty ambitious, too and I like that. So if you come back and say, you know, it was pretty ambitious and we did this and this and this, but we're not completed with this, you are going to have some understanding from me, anyway. So I want to make sure that we provide the resources. We made a very large investment in this department and we want to make sure we get a return on this investment by implementing these things and having a more efficient government. So I'm very appreciative of your presentation today. Thank you very much. Mr. Pasion: Thank you. Chair Asing: Thank you. With that, Councilmember Kawakami. Mr. Kawakami: Thank you, Council Chair and thank you Ernie. Really quick, two (2) questions, your projection is that you will be able to complete three (3) to five (5) performance audits with your current staffing levels now? Mr. Pasion: Yes. Right now as a new Department, you go through some starting difficulties being a new department, so we are a little bit behind. I will be honest with you, because getting audits started, they will be late, but we're making strides. So in the agenda today we're also coming here to say that at the beginning of the year we submitted a budget, but then our budget was cut. Our key function was taken out of our budget, but that is another agenda item that we'll be discussing later. We plan on getting three (3) to five (5) and if not, we'll have reasons why. But we are planning on completing three (3) to five (5). Mr. Kawakami: Okay. Second question is thank you for the list of proposed audits. How are you going to prioritize this and the only reason I ask and I wanted to ask this, because I noticed that we're going to audit the county's fuel cost. It's very important, but in the relative scope of things, I think our county spends about roughly about $1 million in an $147 million operating budget, it accounts for $1 million, which is less than 1%, maybe like .7%. So how do we prioritize and how do you determine it? If you can only complete three (3) just for example, how will you prioritize which ones? Because I noticed you have some that are high cost like Kaiakea and some that are relatively low-cost to the county, such as fuel cost? So how do you go down the list and determine which you will knock down first? Mr. Pasion: We looked at, for example, the fuel is a commodity. So we would look at if it's a commodity subjected to theft and irregularity, we would look at that right away before it gets bigger and make recommendations on controls, just like jurisdictions have done. Mr. Kawakami: Thank you, Council Chair COUNCIL MEETING Chair Asing: • lI • Councilmember Furfaro. October 27, 2010 Mr. Furfaro: This is partially to answer Mr. Bynum's question and also just to reassure me. As a past Finance Chair, I reviewed the first draft of the Kilauea gym audit and I submitted comments about two (2) years ago that dealt with some standard practices and relatively, it was something that I would hope we would give to Building and Public Works because they were good recommendations. But my understanding is no one has taken that, because we switched auditors. And are we encouraging these individuals to get back, because I would certainly like to submit my notes from that audit to the rest of this body, so that they could at least know that someone in this committee, on this council, as Finance Chair, reviewed that draft report. Mr. Pasion: Vice Chair, we are in constant communication with KMH, the auditors who did the Kilauea gym. When we took over the new office and when we issued the draft before it became final, because it has- to go to the auditee for review and at the time they were ready, but then now we're in a situation where they are all busy doing other jurisdictions' audits and also our Department of Water and so they are not available until next year. So we are, we're going to bring them in. Mr. Furfaro: Let me restate it, Ernie. I was the Finance Chair for the first six (6) years on this Council. I made comments on that draft, it hasn't moved because KMH, we changed its auditors and brought in new auditors. Is it possible? Mr. Pasion: But they are not... KMH did a separate audit. The auditors that we have now are (Inaudible) out of Pittsburg. Mr. Furfaro: I understand that? Mr. Pasion: They are not involved with this audit. Mr. Furfaro: Ernie, I'm trying to get to the point that the documents I shared with you with my comments almost two (2) years ago, can we share those with the rest of the Councilmembers? Mr. Pasion: Eventually when it's going to come up maybe in January when it will be an agenda item Vice Chair. See you had your comments but the Auditee has... it has to get the input from the Auditee first. You were not an auditee. Mr. Furfaro: Yes, I'm sorry to say, I was the Chairman of the Audit Committee that was made up of Councilmember Tokioka, Kaipo Asing and myself and I Chaired that as Finance Director. My comments back to the Auditors have gone almost two (2) years ago, can we share those draft comments with the rest of this body and I've heard your answer, your answer is since they didn't make the agenda, you would prefer that they come back when it's complete? When they have finalize their audit? Mr. Pasion: They have finalized it already Vice Chair. So when they come in, say January, then you can make your comments. The comments that you provided to them, and ask them about what they thought about it? That is what they do. • 12 ~ • COUNCIL MEETING October 27, 2010 Mr. Furfaro: I understand your answer. The answer is no, wait until the whole piece is back and I just want to make sure that everybody is clear that there were some constructive comments from me two (2) years ago that went back to them and I'm anxious to see changes made based on my comments and I'm anxious to see that in front of the full Council. This comes with the territory of being the County's Auditor. Mr. Kawakami raised the question about prioritizing and you made mention in your presentation, we got this report here, but where is the audit matrix that identifies these items as high, moderate or low priority? You made reference there was a matrix. Are we going to be able to see that matrix? Mr. Pasion: That is I would say looking at other jurisdictions like a preparatory stuff that belongs to our office. Mr. Furfaro: Are you going to provide us an audit matrix so that we answered that question, what was high priority, what was low? For example, for me, $1 million in fuel cost is a lower priority than 78% of payroll and benefits. Payroll and benefits should be up here as a high priority. Mr. Pasion: Vice Chair, if you look at our five (5) key audit items in the work plan, one of them addresses that. It will be part of the budget. Mr. Furfaro: Will we in the future get a matrix on priorities? In future years, will we get a matrix of priorities? Mr. Pasion: I would like to get back to you on that one. Mr. Furfaro: Thank you. I can appreciate that. Also in 2003-2004, the Council had an interaction about a Resolution about how we should handle audits and it is in a document here, have you and your staff been able to revisit that structure or that recommendation in that Resolution as it relates to how this report should be done? Mr. Pasion: We are complying with government audit standards. That is what we do. Mr. Furfaro: Okay. So this book here that establishes and by Resolution, how it should be done, which really, in general, this piece manages or references more along the line of risk assessment but you're saying that your department will move iri the future on more the yellow book standard? Mr. Pasion: That is correct. Mr. Furfaro: Okay and that's your decision. I just want to know. So this document, 2002-2004 may be of service, but is not necessarily the policy and the game plan? Mr. Pasion: but not... That's correct. We could use it as a reference Mr. Furfaro: I would like to make sure that you have this as a reference, but I think for all of us to understand, a matrix that measures priorities also measures risk, but you're saying moving forward in your department, COUNCIL MEETING 13 -~ October 27, 2010 of which you are the manager of, director of, you are going to use the yellow book guides for creating the plan? Chair. Mr. Pasion: That's correct. We have a copy of that Vice Chair Asing: I believe Councilmember Furfaro that was in his first report to us that he was going to use the yellow book standard. Mr. Furfaro: Right and many of the pieces that are in the yellow book standard. But I have been on the Council since 2002 and this is the 2002-2004 Resolution, and I just want to know you're going to use it as a tool? Mr. Pasion: Yeah we have a copy of that in our office and we will be using it as a reference, but in general, we'll use the yellow book as the guideline. Mr. Furfaro: Thank you. We do now have an energy sustainibility plan. Will your office be reviewing that as general practice as it relates to energy management? Mr. Pasion: We have a... we started an energy audit. It's ongoing right now, and we would be remiss if we were not going to look at what is available. Mr. Furfaro: I appreciate that comment. Thank you very much. And also, we have another agenda item over here coming up that will deal with the furlough portions, and I heard your comments earlier about your office's role as it relates to kind of working parallel on what was the net impact of the furloughs? And did we benefit with the furloughs or did we lose it based on the fact that we had to use premium pay to accomplish many of the jobs? Is that what I am to understand this item? It's your fifth (5th) bullet point that says, "audit the county's programs to manage employee costs." Would that be in the scope of that bullet point? Mr. Pasion: That would be. Mr. Furfaro: And on the items that deal with I think what Mr. Bynum brought up, the action we took to freeze certain positions, I think we have fifty-three (53) of them frozen, will that be covered in that piece? Mr. Pasion: Yes. Mr. Furfaro: Yes? Okay. I do want to let you know that as we look at the proviso pieces here, that we put in the budget were pretty much worded by myself. We have Section thirty-two (32) which the Director of Finance will be consulting with Personnel Services and conducting a comprehensive assessment of the furlough plan. How are you going to get invited to that meeting? Mr. Pasion: We don't want to be part of it. Mr. Furfaro: You DON'T want to be part of it? Mr. Pasion: Not at all. • 14 COUNCIL MEETING Mr. Furfaro: Mr. Pasion: (Inaudible). October 27, 2010 We'll have an independent guest. Mr. Furfaro: Okay. And then another piece I put in there, which is also referenced in my May 3rd memorandum, prior to the budget and budget considerations, I had talked about the fact that we would like the Administration to come up with a draft policy that addresses the utilization the budgetary reserves. In other words, policy that we have often talked about, so that it is very transparent. And I am very pleased to report that I do now have a piece of correspondence that I will share with the other Councilmembers that on that budgetary reserve policy, the Chair of the Finance Director is willing to meet with me next week to look at some sample policies. In a good year, it's important for us to have a reserve of 10%. In the tough years they actually recommend 15% of the total budget. Would you like to be part of that discussion or would you like to keep it separate? Mr. Pasion: We would like to be separate from that. If you remember... Mr. Furfaro: You just have so much to offer though, Ernie. Mr. Pasion: Remember we issued you a copy of recommended budget practices. Mr. Furfaro: Yes. Mr. Pasion: And in that recommended practices are different good stuff that even the City of San Diego found themselves inadequate. Mr. Furfaro: They found themselves broke is what it amounts to. Mr. Pasion: I don't know about that. Mr. Furfaro: Inadequate... Mr. Pasion: Inadequate as far as their budgetary practices and controls and things like that. Mr. Furfaro: Do you have a copy of my May 3rd comments regarding the budget and where I make recommendations that we should have a reserve policy that needs to be approached in a systematic way? And that generally accepted accounting principles is a minimum of 10%, but as high as 15% being earmarked by the operating budget. Would you generally agree with that? Mr. Pasion: Vice Chair, I don't have a copy of that but we... I don't want to preclude the audit of the budgeting process because that will be part of it. Mr. Furfaro: Okay. So you will be following up on that, but we do have an agreement that we need to work on a policy, so that this reserve is transparent? • 15 • COUNCIL MEETING October 27, 2010 Mr. Pasion: All we do is we make recommendations. As far as implementations, it's going to be the role of the Administration and the Council. Mr. Furfaro: I absolutely understand our role, but I'm looking for some guidelines and you have always been so good about sharing other municipalities' policies and since I have that upcoming meeting that it's possible to develop a plan. And hopefully, it's part of that discussion in December with the Administration about our reserve. Mr. Pasion: Okay. What I will do is... when is your meeting Vice Chair with the? Mr. Furfaro: I think it's the 4th or the 3rd. I can get it to you. Mr. Pasion: What I could do is I could look at one jurisdiction, I believe it's the City of Denver that we looked into and we could provide that to you. Mr. Furfaro: I would appreciate that. I know that was a lot of statements and comments but it's not easy being the County Auditor. Mr. Pasion: I guess it comes with the territory. Mr. Furfaro: But I can tell you how much... how delighted I am but some of these things I mentioned, hopefully we can be reviewing and implementing them in December. Mr. Pasion: Of course, all we can do is recommend and then it's up to you guys to implement. We recommend and you implement. Mr. Furfaro: Well I would take your recommendations and highly endorse them. Mr. Pasion: Thank you. Mr. Furfaro: Thank you Mr. Chair. Chair Asing: I just have a comment. I think Councilmember Furfaro, in your line of questioning, I believe I got the impression anyway that the Auditor's Office is trying to do its best to be independent. Mr. Furfaro: I clearly understand that Mr. Chairman, but I need some information from the Auditor's Office. I don't need numbers thrown in front of me and not understand their business strategy to get there. Obviously, it starts with having a matrix. What are your priorities? That is common in any audit I've done in my business career. Yes, I realize you are independent, but at the same time, I want to make sure that Mr. Bynum understood my question that if we have something that we really are wanting to audit, that we can implement a Resolution with four (4) people that want to pursue an item and that is your mandate to take that on. You can come back to us and say there's going to be extra cost. 16 • COUNCIL MEETING October 27, 2010 Mr. Pasion: That's right. Mr. Furfaro: Right? Mr. Pasion: That's right. Mr. Furfaro: But I want to make sure that we all understand that we have that privilege. Mr. Pasion: I believe you have the understanding that when you make Resolutions for us to audit, make sure we also have provided the adequate resources to conduct that audit. Mr. Furfaro: Absolutely and I think as we get into that discussion, right now be a little premature to see what kind of staffing we might add based on the fact that we're in furloughs. And I want to evaluate, like Mr. Bynum, the whole effectiveness of that in December. I don't think it would be prudent for us to add here a finalized plan while we're looking at issues here that are actually costing us premium dollars, because we have people on furloughs or have the day off. So Mr. Chair, I want you to know, in the business that I have been in, I have in fact dealt with many, many audits and I don't think Mr. Pasion felt that my questions were out of line. I think they were along the line of what we should expect from an Audit Department. Would you agree with that? If you don't, tell me you don't. Mr. Pasion: Well, I would say that role of auditing in the public sector is much different from auditing in the private sector. Especially in the private sector, you don't have the different practice of government that could be opposing or pro or in favor of the audit. In the private sector when the Board of Directors say and talk to the CEO and his or her managers, this is what we would like done and it's done. In the public sector, you have... Mr. Furfaro: I understand. Mr. Pasion: Different branches of government that might not agree... Mr. Furfaro: From a management company, there is also a group of owners of a hotel or an asset and they have a different standard. We should set our standards high Ernie Mr. Pasion: I agree. Mr. Furfaro: Thank you. Thank you Mr. Chair. Chair Asing: Any further questions? Councilmember Kawahara. Ms. Kawahara: Thank you, Chair. Good morning Ernie, again and I'm glad to see you up here and discussing the County Auditor's plans. I got a little worried whether Councilmembers were asking how you would be setting priorities and I wasn't sure if I understood the answers. You were going to consider giving us a list of priorities and how we have the list of actual projects that you want to do, but we don't know in what priority you placed each item, is that correct? • 17 COUNCIL MEETING • October 27, 2010 Mr. Pasion: We were going to do all of them. Of the five (5) audit items that we submitted, fuel is ongoing. And energy is ongoing. We haven't started budget yet and we haven't started on the hiring freeze yet and we haven't started the furlough yet. Ms. Kawahara: But then. Mr. Pasion: But we have secured a professional economist to help us with the hiring and furlough and we have secured the services of a professional engineering consulting services for the capital budget management. Mr. Kawahara: Okay. So your intent is to complete the whole list of projects? Mr. Pasion: We hope and pray. Kindly pray for us. Ms. Kawahara: I'm hearing from the Council that there are some... Mr. Pasion: Kindly pray for us, because we don't want to be (Inaudible). Ms. Kawahara: Yes and I'm also getting a clear message that you can only recommend. Mr. Pasion: Yes. We provide the facts and we recommend, and implementation is your ballgame. Ms. Kawahara: In regards to the meeting that Councilmember Furfaro was speaking about with the Administration and the Finance Director, I'm pretty sure you said that they have receive... the Administration has received the general accounting standards for reserves and you would have submitted that to the Administration already, right? Mr. Pasion: No I didn't say that... what I understood... Ms. Kawahara: I mean in general, the package you have already submitted to Administration and us is what is a general accounting standard practice especially for unassigned reserves?. Mr. Pasion: No. What the question was that the Vice Chair was going to have a meeting with Director of Finance to look at establishing reserve policy. My answer to that is that would be covered by the audit on the way we do budgets. However, because he is going to have a meeting soon, we could look at different jurisdictions and what they have and provide it to him.' Ms. Kawahara: Okay. Mr. Pasion: Okay and that's aside from what we're going to do. So hopefully, when we do ours and they look at other jurisdictions, they would be more open about adapting such policies in the future. • 18 • COUNCIL MEETING October 27, 2010 Ms. Kawahara: Hopefully, hopefully they will overlap and have the same goals. Mr. Pasion: All we can do is provide the information and research on how things are done and how we do things and things like that and compare that to best practices. Then we present it to the Administration and Council and will come with recommendations and if it's good for the community. Ms. Kawahara: Well, I'm looking forward to that and that work with the work Councilmember Furfaro is going to do, because I also agree the unassigned reserve issue for our budget is something that needs to be addressed, especially discussing furloughs and whether or not they need to be taken. That is a major concern and I'm glad you will look into it and put a stamp of approval from the auditor that says, with our reserves that we have now, it may be too high or whatever the standard would be. And we would like to target a certain percentage for that. The other one I wanted to discuss with you was the review and assessment of feasibility of consolidating personnel functions, pre-audit survey. If you could tell me a little bit about that and a little bit about how you will go about doing that and what resources you will use? Will you be looking at the report that the Cost Control Commission did on personnel functions? Mr. Pasion: Yes that was recommendation from the Cost Control Commission and as a' matter of fact, there was a study done under, I think, Baptiste Administration. We are going to look into that. Right now we have, by Charter we have the Department of Personnel Services set up according to Charter. But because they are doing the function that are embodied in the charter, I guess the Cost Control Commission would like to see more a comprehensive organization, that only looks into hiring practices and things like that, but overall its HR management. The fact that we have each Department that basically has its own personnel function and I guess they look at what are the economies of scale and benefits of having a more centralized. That way every department has the same forms and approaches and things to deal with different kinds of issues. Ms. Kawahara: looking at? Mr. Pasion: Ms. Kawahara: at. And that is something that you're going to be That is correct. Along with the Cost Commission had looked Mr. Pasion: jurisdictions too on what they have. That's correct. We will be looking at other Ms. Kawahara: I'm looking forward to that. I'm also wondering if you are doing an analysis of the statement that's it's in the Charter as a Personnel Department, how would it work to make it a Human Resources Department? Will you be providing analysis on how that would work? Mr. Pasion: We'll try. Ms. Kawahara: Okay. That's a good answer. Also will you work with the County Attorney's Office in looking at the risks and costs of one or the other? • 19 COUNCIL MEETING October 27, 2010 Mr. Pasion: We always work with the County Attorney. Ms. Kawahara: And you will be evaluating the costs and the risks that we face without one as a comprehensive resource department or resource division? Mr. Pasion: We will consult with the County Attorney as necessary and we continue to work with County Attorney's Office. Ms. Kawahara: Not just based on law stuff, but on how much the county has spent? On things that may have been avoided? That would be part of analysis of what was taken out of County coffers? Mr. Pasion: I don't know, there might be some limitations of what we could do or couldn't do. I don't even want to go into that one. Ms. Kawahara: Okay. I think that is all I had for now and I would be interested in a matrix or something to the nature of how you will prioritize stuff. And I want to fully recognize and acknowledge that your office is totally independent and I'm very glad to hear that. As you said, the public sector is very different from the private sector, whereas the CEO would say do it and whereas you are going have to deal with at least three (3) different masters -the Administrative, Council, Judicial, whatever. Mr. Pasion: Yeah I was in the private sector for more than twenty-three (23) years. Ms. Kawahara: Well I'm looking forward to really good work from your department and with all the information that you can provide is that the Administration and Council will be supportive of any kind of improvement that can be made to make us more effective and efficient and a good place. Mr. Pasion: We're looking forward to that. Ms. Kawahara: Thank you. Chair Asing: Thank you. With no other questions... Councilmember Bynum. Mr. Bynum: I have a follow-up on a couple of things that I heard other Councilmembers talking about. One real quickly regarding the hiring freeze and the dollar-funded positions. In addition to those dollar-funded positions, other positions that were funded were also frozen. So that is going to not just look at the dollar-funded, but look at the whole gamut, is that correct? Mr. Pasion: That's what we're planning to do. Mr. Bynum: Good, I just wanted to confirm that. And then I like Councilmember Kawahara's questions about personnel and I would just add to that, that I'm just thinking out loud here that one (1) of the recommendations might be that hey, we need to change the Charter or recommend a Charter change. Also about the concept of a Human Resource Department and how that fits in with a position that I believe we funded for a risk manager in the • 20 • COUNCIL MEETING October 27, 2010 Department of Finance and where would that be in the overall structure? Would it be in Finance? I have always seen HR as more comprehensive about nurturing our employees and providing training opportunities and those having a risk- management function; if employees know how to lift a box, they are less likely to have a workers' compensation claim. That is the simplest form and we talked recently about sexual harassment and the liability that has caused. So hopefully that is a really good examination of what does HR include? And I just wanted to bring up the fact that I really appreciated the Administration's initiative on risk manager. I think that came from the Department of Finance, as I recall. I think the Council approved it, as I recall, but because of fiscal things, that position hasn't been filled. So just to bring your attention to that and how it would fit in the overall personnel place? Does it fit in Finance or should it be in Personnel or HR whatever we want to call it? The last thing is I heard your initial budget request, you requested what you felt were the resources that you needed to accomplish the tasks that have been outlined for you by the formation of the department and also by your plan. And in last year's budget, .there were cuts to that budget? Mr. Pasion: That is correct. Mr. Bynum: And that may be why we have a different agenda item today? Mr. Pasion: That is correct. Mr. Bynum: And then the last thing just to note that ... when did your department officially, when did it exist, when was it created? Mr. Pasion: Well the office was originally created by Charter amendment in the general election of 2008 by the voters, November of 2008. And so basically the office was by law established, but the functioning office was started September 16, 2009, when I was appointed. Mr. Bynum: Right. And then June 28th as required you gave us your work plan. And you are working on that work plan, you mentioned a few minutes ago. Mr. Pasion: I found out that according to the Charter it has to be submitted before the beginning of the fiscal year. Mr. Bynum: Right. Mr. Pasion: We also looked at how it's done in other jurisdictions. We also looked at how it's done in other jurisdictions, we just don't do things like you know this is how we'd like to do it. We joined the Association of Local Government Auditors, we joined the Association of Government Accountants, and we also joined the Association of Certified Fraud Examiners. Mr. Bynum: And so the fiscal year was July 1. Prior to the fiscal year, you submitted your plan and you are working this plan right now? Mr. Pasion: That is correct. . 21 COUNCIL MEETING October 27, 2010 Mr. Bynum: With the resources that you have? Councilmember Kawahara, this is impressive and you are working on the plan you gave us? Mr. Pasion: That is correct. Mr. Bynum: And I appreciate that. Mr. Pasion: Thank you. Mr. Bynum: Thank you. Chair Asing: Thank you. With that, Councilmember Furfaro? Mr. Furfaro: So I just want to get this clarified for future years, each year you are required to submit your plan, your audit plan to the council? Mr. Pasion: Before the beginning of the fiscal year. Mr. Furfaro: Should it be an agenda item? Mr. Pasion: I am looking at the two (2) jurisdictions that have one Office of County Auditor, the City as well as the Big Island. County of Maui still has Legislative Auditor under the Council Services group. The City Auditor's Office which was started by the Deputy State Auditor took over that position when it was established and it's not agendaed. The one on the Big Island, the County Auditor of the Big Island requested the work plan to be agendaed. Mr. Furfaro: So should we make that in future years, should we make that request that it's at least discussed, received by the Council? Mr. Pasion: The work plan will be received by the Council and submitted. The reason why... let's say you want it submitted in May or April before the beginning of the budget approval and we submit it and then you look at it, the Administration looks at it and they say oh we don't want this to be audited... Mr. Furfaro: No I didn't say... I didn't say to approve it, I said to make a presentation and receive it. Mr. Pasion: Yeah we could do that. Like I said if we present it and then we then submit a budget and then... you know there's some possible you know... Mr. Furfaro: Ernie, the Charter amendment that. went in, I worked on and we submitted it to the Council here. So sometimes I look at it and I kind of see it as my item. But we should at least see the plan so we clearly understand the budget and the budget we could have approval on. So that is why I think the plan should be submitted to review, so we can best understand your budget, the things that you want to accomplish. 22 COUNCIL MEETING October 27, 2010 Mr. Pasion: My only concern is when you say "the budget" and it's submitted and the subject becomes is it going to be cut because we submitted what the people don't like? Mr. Furfaro: Okay, well I'm only one of seven, but the reality is that your plan comes in, you discuss it with us, we review it and we have a better understanding what your plans are for the year. Mr. Pasion: We looked at the City, and the City does that... they don't submit it. Mr. Furfaro: So you are saying at the same time you should have a carte blanche budget? The two (2) go hand in hand. You know? It's your plan. You have the autonomy on the plan, but when he come to financing the plan, we should have a say in the budget. I would think the more information that you give us about your work effort, the more we're able to support your financial portions. Mr. Pasion: It would be also be double-edged sword. Mr. Furfaro: Well, it's not an agenda item today. It was just a discussion item, how is that? Chair Asing: With that, Councilmember Bynum. Mr. Bynum: I think this last discussion was really interesting. Because I think it's very important that the Office of the Auditor have independence. I mean, what I heard you saying is that hey, you submit the plan and we don't like the plan, we might cut your budget. So I think we need to continue to have this discussion, because I certainly am in the category when you submit a plan, it should be an agenda item that gets shared with the public. And that is one of the reasons I asked for this today. On the other hand, I trust this Council, but we're setting up a system where some people ten (10) years from now may just do that and say, I want you to avoid looking at this area of county government, so I will just take away your resources. I'm sure we wouldn't do that. Mr. Furfaro: Let's make sure we understand. I understand his independence, but when you deal with the morale of the entire department in the County, all departments, there are wish-lists for people to have things in their area and they're subject to budget review. Mr. Bynum: Right. Mr. Furfaro: I understand the independence. I wrote the Charter amendment. So we need his services, but at the same time, we need to have clear understanding and we have to treat all departments with a review. Mr. Bynum: I want to pursue this further. Perhaps there is a time schedule we can approve the budget and then do the plan, so there is not, like, a direct link in any one given year. We at least have to wait a year. Because eventually, I think a normality will be established and we will be held, we or future Councils will be held accountable if they make big changes that weaken the ability of the Auditor to perform their function. I think it was an interesting discussion 23 COUNCIL MEETING October 27, 2010 and let's look at the timetable and how that comes down. I know you are looking to the future as well as the rest of us. Mr. Pasion There is a section in the yellow book regarding control and influence and the auditor's function. We could provide that again to you. I believe that was also provided, but we'll provide it to you again. Mr. Bynum: Thank you. Chair Asing: Thank you. Any further questions? Mr. Furfaro: Yes, I do. Chair Asing: Yes, go ahead. Mr. Furfaro: So you are saying from this discussion that your office under your leadership for the next six (6) years is going to follow the guidelines of the yellow book? Mr. Pasion: Mr. Furfaro: made very clear by policy? That is correct. Should that have been something that we Mr. Pasion: Mr. Furfaro: It's in the Charter. It references... Mr. Pasion: Vice Chair, it's in the Charter. By Charter we have to conform with government auditing standards. Mr. Furfaro: I understand that but... Mr. Pasion: I don't have the Charter with me, but I can send you the section in the charter that says we abide by the government auditing standards. Mr. Furfaro: Would you -get me that section? Not right now. Mr. Pasion: from staff and highlight it for you. Before I leave the building I will get a copy Mr. Furfaro: Does that yellow book policy.... Does it touch on your budget provisions? Mr. Pasion: Then you go into the yellow book and look for this section in the yellow book about the independence and then the control and influence over that function. Mr. Furfaro: Anything you could send me, I would appreciate. • Mr. Pasion: It's in there, yes. 24 COUNCIL MEETING October 27, 2010 Mr. Furfaro: Good. Chair Asing: Thank you. Any further discussion? If not, just one comment. I think Ernie, you explained that you were looking at other jurisdictions on how the process is handled and there is a difference in how the auditors handle their operations in Oahu versus the auditor's office in Hawaii county handles theirs a little bit different. I think that is what Ernie was trying to explain. Mr. Furfaro: I do have one more question. Let me ask you, in your department, what is your protocol, when say you go over to the building department to talk to staff members when you are fact-finding and so forth, do you go through the head of Building Department and say my people will be there? Mr. Pasion: When the office was established, we made a meeting and we requested a meeting with the Mayor and the Mayor invited to that meeting his lieutenants, if I can call it that way. In that meeting we established protocols, where if we go in to audit a department, we have to have go through the Mayor's Office first. Then the Mayor's Office informs the Department. So other jurisdictions, what they do is that they write a letter to the auditee, and a copy to the Mayor's Office. And things move faster this way. Mr. Furfaro: I would think so Ernie. Mr. Pasion: But this time... fortunately we have to go through the Mayor's Office and that is why some of our I hate to say this, but some of our audit activities have been a little delayed. Mr. Furfaro: So let me ask you, I had suggested you hold individual meetings with some of the departments. Mr. Pasion: We did that. Mr. Furfaro: Okay. You went to them and explained your role? Mr. Pasion: Mr. Furfaro: Chair Asing: Mr. Pasion: that are volunteering to be audited. Right. Good. Thank you. Thank you Mr. Chair. Thank you. And by the way there was some departments Chair Asing: Thank you. With that, there will be no other questions. I would like to call... oh, I'm sorry. Ernie, thank you very much. We have the public who wants to speak on this item. Glenn, please. Mr. Bynum: Chair? Chair Asing: Yes. 25 • COUNCIL MEETING October 27, 2010 Mr. Bynum: We'll have a discussion after the public comment? Chair Asing: Sure. There being no objections, the rules were suspended. GLENN MICKENS: Thank you, Kaipo. For the record, Glenn Mickens. I have a short comment here. Ernie in his testimony brought up the Kilauea gym project. I applaud him. If he can find out what happened with this long-running, I believe it's gone on for ten years, maybe more, maybe less of it's a fiasco. We probably spend more money on a leaky roof than a whole new game. This has been handled deplorably and I hope Ernie gets answers. I believe that this Council appropriated a hundred thousand dollars if I'm not mistaken. I've talked this over with Jay one time to find out what happened with this project. In fact I believe that this Council appropriated five hundred thousand ($500,000) for a performance audit, this has been five' (5), six (6) years ago, which was never done and now I hope that Ernie can get resolution to this subject. Kaipo, you are as learned about this thing as anyone on this Council. Someone was even hurt and slipped on it, whether it was water leaking. They said the walls were sweating and it went on and on. It's just inconceivable that something like this could have gone on for this length of time and there is no telling, I have no idea what amount of money was spent but it's got to be a~huge amount of money. It seems like this thing has perpetually gone on. I can't understand it. But anyway, I really applaud Ernie, because I think he is going to do a good job in his position. Thank you. Mr. Furfaro: Glenn before you leave. Mr. Mickens: Yeah? Chair Asing: Go ahead. Mr. Furfaro: Glenn the Kilauea gym audit was done two (2) years ago, if you didn't follow that discussion. Mr. Mickens: It wasn't in the paper. Mr. Furfaro: It wasn't. The draft was done and the Audit Committee sent back comments and then we changed auditors. There were discussions about getting the draft on the agenda, but we sent back comments. Until the audit is finished, it's not necessarily shared with the department. But the audit is done. Mr. Mickens: get resolution to this thing? Mr. Furfaro: again. Mr. Mickens: It took the auditor ten (10) years to finally No and as usual, you are just exaggerating How many years? 26 COUNCIL MEETING October 27, 2010 Mr. Furfaro: The audit started in 2004. It's been six (6) years. Mr. Mickens: Okay, six (6) years, it's taken six (6) years for them to get resolution to this thing and it's still not done. Mr. Furfaro: It was done two (2) years in the form of a draft. Comments from the Audit Committee were sent to the auditors and they are subsequently were not the auditors in recent years and they have delayed their final report. But the investigation, the draft and the assessment was done in a draft report. I just want to set the record straight. Mr. Mickens: What is the delay of giving the public what happened with this thing? You say that we appropriated $100,000 for that particular audit, right? Didn't you tell me that? Mr. Furfaro: Actually you just said that to us. Mr. Mickens: Right. Mr. Furfaro: But it was about a hundred thousand ($100,000) and what I am saying is that it never got over to the Administration to get back on the agenda. If you were following my discussion, that is what I was complaining about. Mr. Mickens: Then where does the problem lie, with the Administration? Is that what you are saying? Mr. Furfaro: No... The problem lies with the answers that Mr. Pasion gave us that they will meet on the first draft comments with those auditors and submit a final report. Mr. Mickens: But you said the audit was done two (2) years ago. ALFRED B. CASTILLO, COUNTY ATTORNEY: Council Chair? Council Chair excuse me. Chair Asing: Yes, go ahead. Mr. Castillo: County Attorney, Al Castillo. You know this is a process and the speaker here should be giving testimony regarding the agenda item. Chair Asing: Thank you. Mr. Castillo: An argument on the Council floor is... I don't think it's appropriate. Chair Asing: Thank you. Mr. Furfaro: Excuse me, Mr. Chair and to the County Attorney. • 27 • COUNCIL MEETING October 27, 2010 Chair Asing: Go ahead. Mr. Furfaro: Testimony should be given that is truthful and factual okay? So the idea was not to say that it's been dragging for over ten (10) years. We agree it's six (6) years... a draft was done over two (2) years ago, those auditors have not been retained to give a final review of which Mr. Pasion is now saying is going to be one of his first task. I have no more questions. Chair Asing: Thank you. Mr. Furfaro: I have no more questions for Mr. Mickens. Chair Asing: Thank you Glenn. Mr. Mickens: Thank you. Chair Asing: Is there anyone else who wants to speak on this item? If not, I'd like to call the meeting back to order. There being no one else to speak on this matter, the meeting was called back to order, and proceeded as follows. Chair Asing: Is there any further discussion? Councilmember Bynum. Mr. Bynum: I want to thank Ernie again for coming here and having this discussion today, I think it was a good one and it was informative. I am very supportive of the Office of the Auditor and them having the resources for the job adequately. I think they are off to a good start. We haven't had an auditor before, right? This is something new. I think it's a good thing. You have probably all heard of this before, when you start something new, you probably heard that you form, storm, norm and perform. When you form something, you have to setup the standards, you got to get the things worked out. We discussed some of those today. How do you interface with the departments and the Administration? It makes sense that people will have some level of discomfort with having accountability and oversight of processes that they have had for a very long time. Or doing the things the way that they do, you know? We're only human beings and when somebody is assessing our work, it's a nervous time. But those of us that are mature and understand that that process will in the long run help us and make us more effective, that the goal isn't to find problems, the goal is to find improvements is to keep us moving forward. And so we're in the formation stage and it's inevitable there be a little storming and we hope it's a minimum and I think it will be, because we have a bunch of fine professionals who work for the county of Kauai. And in that process we'll develop norms and get a routine down and we can perform. I know you have heard that analogy before, form, storm, norm and perform and we're going through that process as a county. Whether 'it's on the Council level or departmental level, we're developing those norms and that is all a very positive thing. In terms of Kilauea gym audit those are the questions that I am asking and I am requesting that we have a presentation to the council to bring that to fruition. I am frustrated about the timeline, but I don't know the answers and where the accountability lies. That is what we're going to do and find out. I do know there is an audit that is shared with Public Works to give them the issues involved. I was hearing honestly, I am the chair of Public Works, the Public Works Department is • 28 • COUNCIL MEETING October 27, 2010 saying hey, we met with the auditors and gave all this information and we want to know the results. We want to know how we're doing and where we can improve. And it was a very sincere request. Those things have happened and I think the final thing is to have that discussion for the benefit of Mr. Mickens and others interested in the whole process. It doesn't feel like we have had closure and we need that. I don't think we're going to find anything huge. We're going to find that the process worked, I hope. I am pretty sure that we will. So I very much appreciate having this discussion today. Thank you very much. Chair Asing Thank you. Councilmember Furfaro? Mr. Furfaro: Yes. First of all, I want to say to the Audit Department, the fact-finding that you do, you will get all the support from us. I just want to make sure it's well-communicated as Mr. Bynum said. The fact of the matter is when people have good information they can come to the right conclusions. I also wanted to say to the Kilauea gym, as I said with Mr. Bynum, you saw some of my narrative that went over two years ago. I did a complete management assessment to the best of my knowledge and those comments were sent over. As I am trying to ask the question about the draft plan, it seems the auditors would prefer it's not an agenda item until it's complete and that is what I was saying here. And "complete" means getting the originally assigned auditors back. I think I mentioned on that particular piece there were no real significant challenges and that I will share with you, and I spent several days going over all of the notes. I thought I did a pretty comprehensive review that went back to the Building Department. But we're going to be in tough times going forward, and we don't necessarily have options to keep putting money on the table. So Ernie's role is very, very welcome with his staff. But I think it's going to be more of a sense for me is getting through the reviews that we have got scheduled for December. I will be meeting with the Finance Director as it relates to coming up with some kind of draft reserve policy that we can mutually agree on and then eventually present it to the Council. So thank you very much. Chair Asing: Thank you. Any further discussion? Councilmember Kawahara. Ms. Kawahara: I, too, wanted to say the auditing services and Office of the Auditor is a very welcome to the government and wanted to echo Councilmember Bynum in his capturing of the essence of where we are with the Auditing Department and we're just starting it and the whole process how it will work out, how it will be done procedurally is important to recognize, and I want to thank Ernie for being willing and able to be our first County Auditor. I think also want to recognize as Councilmember Bynum said it's not a punitive action that takes place in an audit, but how to improve government and efficiencies? So I'm really glad we have a county auditor and mutual respect as we get to a norm with an audit. Chair Asing: Thank you. Any further discussion? If not, I would like to comment and commend everyone for their participation today. To Ernie, it's a new endeavor, new office and there's many things you need to look at. I know you shared your analysis and in your analysis you are going to be following the standards of the yellow book. And you will be following the standard as • 29 COUNCIL MEETING October 27, 2010 prescribed in the yellow book. So we look forward to your office conducting audits and we will work together with you in that endeavor. So with that, thank you very much and with there being no other additional discussion on the item. Do we have a motion to receive? Mr. Furfaro moved to receive C 2010-289 for the record, seconded by Mr. Bynum, and unanimously carried. Chair Asing: Next item please. Mr. Nakamura: Council Chair... Mr. Furfaro: If we could possibly break for lunch, Mr. Chair it's 12:30. Chair Asing: Thank you. We'll break for lunch and be back at 1:30. There being no objections, the Council recessed 12:32 p.m. The Council reconvened at 1:49 p.m., and proceeded as follows: Chair Asing: Council meeting is now called to order. With that Mr. Clerk next item please. Mr. Nakamura: Mr. Chair we're on page two (2) of the Council's agenda on communication C 2010-290. Mr. Furfaro: Excuse me Mr. Clerk, I was going to ask before we have started if I can have a moment of personal privilege? Chair Asing: Yes you may. Mr. Furfaro: Thank you so much Mr. Chair. Chair Asing: Go ahead. Mr. Furfaro: We are back from lunch and I just wanted to make sure for the purpose of getting good information out, I have here the date that the professional services agreement was issued April 30, 2005 and I want to give that to Mr. Mickens along with the performance report for the Kilauea gym, which is on the website. I want to make very clear that the questions and resolutions have not come to this council, because as Mr. Bynum may have seen in my summary, one thing that became very apparent is the possibility of having a project manager for large projects as a discussion item. So thank you for that time, I just want to, again, reference the date and give an actual hard copy on the performance audit, which is completed. And others can see it on the county website under the Audit Department. Thank you for that, Mr. Chair. Chair Asing: Thank you. With that, Mr. Clerk can you read the next item please? LJ Mr. Nakamura: Council Chair, we're on page two (2) of the Council agenda on communication C-2010-290. • 30 • COUNCIL MEETING October 27, 2010 C 2010-290 Communication (10/15/2010) from Vice Chair Furfaro and Councilmember Kawahara, requesting that the Director of Finance and the Director of Personnel Services be present to review furlough questions that will be discussed at the upcoming review of .the County's Furlough Plan that has been scheduled for the December 15, 2010 Council Meeting, pursuant to Section 32 of the Operating Budget for FY 2010-2011. Chair Asing: Thank you. With that, Councilmember Furfaro? Mr. Furfaro: Thank you. Thank you Mr. Chair. I would like to reference the memorandum sent over October 15, signed by myself as well as Councilwoman Kawahara. This is a step-by-step question looking for the net results on the furlough plan. This is directed to Mr. Rezentes and there are twelve (12) questions directed to him for the December 15 Council meeting. They start anywhere from the aggregate totals for the first quarter of the year 2010 on payroll savings. It talks about have we achieved our furlough savings that was planned for, and asking about non-payroll activities such as the benefit packages associated with medical, vacation and pay. If you do not see reduced hours it's assumed that the benefit package is still carried. Even if you save hours that are less than the part- time status, you are carrying the cost on earned sick-leave pay, as well as vacation and other measurable benefits. Another question keels with negative impacts on the county cash flow. Have we experienced any of that and I want to thank Councilwoman Kawahara for collaborating with me and also the Department of Motor Vehicle Registration and collections from any other divisions or delinquencies? Has there been increase in personnel overtime? The overtime is related to the fact that we may be paying a premium over regular time to get the work done in a timely manner. There were questions raised in this piece, project delays that would add to any project costs. It also has questions dealing with time and attendance and if there are possibilities that we extended times from Friday to Monday. And has there been any other increases in non-productive payroll related to morale, potential morale issues? And it also summarizes the two (2) questions that before Mr. Bynum posed to the auditors on unfilled positions and any positions that we're holding. I wanted to have that summerized in a net/net savings by department. I think it's very important that people realize that it's not a simple thing as adjusting the numbers through a money bill, but we would actually have to do something that says we would have to amend the budget by department. Department by department. So those are some of the questions. I know Mr. Bynum has some other questions to add, but I have one (1) slide powerpoint presentation that I wanted to share with you folks, if I could. This is related to the two (2) proviso questions in the budget for consideration. There we go. These were items we put in provisos 1, 2 and 3. The county agreed upon policy for the determining and establishment of an annual reserve. We touched on that a little earlier on Mr. Bynum's item that I meet with the Finance Department the first week in November to begin a discussion on having an actual policy that could range from 10 to 15% in a year and only based on the operating budget. So we have a transparency on what should be the right reserve. Already reviewing the provision on what benefits are realized from the furloughs versus the • 31 COUNCIL MEETING October 27, 2010 planned savings? Are we causing any new workloads based on the fact that we have offices closed two (2) days a week? Three, evaluate the size of the surplus carryover versus paying down debt. We carry $7 million worth of debt service on the new bonds, we'll have a total of $120 million. That includes the money that we have supported for the Water Department. Review investment returns versus using surplus to pay down the debt. I just touched on that as well. Review the execution and in-house ability to complete capital projects as scheduled and funded. Remember when we borrow bond money to do capital appropriation, the rule of thumb is that we have 36 months to complete the project. If not, we enter into a penalty phase. Also evaluate the premium pay versus the straight-time pay for the furlough period and comparisons to pre-furlough history patterns. So we want to know what the payroll was running prior to furloughs and then what we had planned to save and added to that any new hires and/or overtime incurred. And last, you know, the minimal impact of the entitled benefits, such as vacation, sick accruals, as well as health, wellness benefits continuing at full-time levels. I want to point out this is a biannual year for the State, which means the State is going to propose a draft budget that covers atwo-year period and they will touch on things like collective bargaining contracts. Ours will be up, as well as insurance, health and liability insurance premiums, and our OPED, which deals with our retirements as it relates to previous employees of the county. So I just wanted to share with you and thank you Councilwoman Kawahara for her collaboration on this memorandum, but this is for the December 15 meeting. That is all I wanted to report on, Chair. Chair Asing: Thank you. With that, can we have the lights on first, please? With that, any questions? Councilmembers? If not, go ahead Councilmember Bynum. Mr. Bynum: As Mr. Furfaro indicated I'm also sending over some questions to give the Administration a head's up regarding our discussion that happens on December 15. I will circulate these to all Councilmembers. They relate more to the impact of furloughs on services, particularly in our Neighborhood Centers and in our senior programs. The Neighborhood Centers are closed on furlough days and those happen to be Fridays, which are probably the most popular use day and our seniors and their health and wellness programs meet in the senior centers. So I want to have an understanding of how furloughs impacted services. And also, how furloughs have impacted our employees? And the amount of money that is circulating in our economy. So I'm asking questions about the number of employees at certain salary ranges and also, the impact on take-home pay for county employees that work at different salary levels. So I just wanted to state that. Chair Asing: Thank you. Mr. Bynum: And I'm assuming that on the 15th, if any Councilmember comes up with further questions we could forward those and we'll have an open dialogue on the 15th. Chair Asing: So we'll add that memo together with Councilmember Furfaro's memo. Thank you. Any other discussion? Yes? Councilmember Kawahara? • 32 • COUNCIL MEETING October 27, 2010 Ms. Kawahara: Thank you Chair. I wanted to thank Vice Chair Furfaro for helping and formulating most of the questions on this memo. I believe the furlough plan we put in place has had a great impact on our economy and workers. So I really appreciate Councilmember and Vice Chair Furfaro going through the nuts and bolts how the furlough was implemented and if we are going to make any cost-savings at all. Having his business and management savvy to look at the issue and come up with the questions was really important. Question number five (5) definitely was a concern of mine about how the furlough was going to work and whether there was going to be an increase in personnel overtime and if so, by how much and the percentage and amount. And also about our ability to meet and process permits and applications as a county. And the other one was whether or not there is going to be a way to measure the impact of furloughs on employees' morale and reduced productivity related to furloughs. I think it's really important when we took the step to decide to do furloughs, it was a significant step that needs to be looked at to see if any at all savings were made on that. And it does major make for us to be accountable on whether or .not that furlough was something we needed to do and something that we'll need to continue. I want to thank Vice Chair Furfaro for having the insight to give our Administration and Departments a big head's up what we're expecting from this to prove the effects of the furlough and how it's going to pencil out in our budget. Thank you. ahead. Chair Asing: Mr. Furfaro: Auditor indicated earlier, separate evaluation. This is just to give the number two (2) and proviso numbe which are in the budget. Thank you. Thank you. Any further questions? Yes, go I want to reestablish what the County from these questions he will pursue his own Finance Department a head's up on proviso r thirty-two (32) and number thirty-three (33), Chair Asing: Thank you. Any further discussion? If not, can we have a motion to receive? Mr. Bynum moved to receive C 2010-290 for the record, seconded by Mr. Furfaro, and unanimously carried. Chair Asing: Next item please. Mr. Watanabe: Next item is 2010-291. C 2010-291 Communication (09/21/2010) from the Fire Chief, requesting Council approval to establish a Temporary As Needed (TAN) operator position for the brush truck assigned to the new Kaiakea Fire Station to accommodate emergency staffing needs to implement Section 27 of the Hawaii Fire Fighters Association Contract Agreement, and to utilize existing employees through an assignment of work without a formal change in position: Mr. Chang moved to approve C 2010-291, seconded by Mr. Furfaro. Chair Asing: Any discussion? Mr. Furfaro: Yes. COUNCIL MEETING Chair Asing: • 33 Yes, go ahead. • October 27, 2010 Mr. Furfaro: I just wanted to say... I visited with some of the training going on with the fire fighters on (Inaudible) with Kaiakea Fire Station yesterday and was very pleased with the effort being put into this. Thank you Chiar. Chair Asing: Thank you. Any additional comments? If not, all those in favor say aye? Councilmembers: Chair Asing: Aye. Motion carried. The motion to approve C 2010-291 was then put, and unanimously carried. Chair Asing: Next item please. Mr. Watanabe: C 2010-292. C 2010-292 Communication (09/24/2010) from the Director of Parks and Recreation, transmitting for Council approval an Application For County Funds Under Park Grant Fund in the amount of $7,470.00 for various improvements in Hanapepe Cliffside Park at Hanapepe Heights, and to assign the grant fund to the Garden Island RC&D which is the sponsoring non-profit entity providing fiscal oversight of the project construction: Mr. Furfaro moved to approve C 2010-292, seconded by Mr. Chang. Chair Asing: Any discussion? Yes, Councilmember Bynum. Mr. Bynum: I just wanted to acknowledge all those great volunteers in Hanapepe that have been working on these projects at Cliffside Park and appreciations to RC&D for being the fiscal umbrella... that's it. Chair Asing: Thank ,you. Any further discussion? I'd like to echo the same comments as Councilmember Bynum. As a matter of fact I would like to send a letter from the Council to that effect thanking all of the volunteers for their hard work. They have been doing it for years and this is another one of their projects continuing to improve a park system there. So I totally agree and I'd like to have a communication sent to that effect. Mr. Furfaro: Chair Asing: All those in favor say aye. Councilmembers: Chair Asing: please. Well said, thank you Mr. Chair. With that, any further discussion? If not. Aye. Oppose say "no". Motion carried. Next item The motion to approve C 2010-291 was then put, and unanimously carried. • 34 COUNCIL MEETING Mr. Watanabe: C 2010-293. October 27, 2010 C 2010-293 Communication (10/01/2010) from the Fire Chief, requesting Council approval to apply for, receive, and expend a Staffing for Adequate Fire and Emergency Response (SAFER) Grant administered by the U.S. Department of Homeland Security for $436,725.00, to fund three (3) dollar-funded firefighter positions for atwo-year period: Mr. Chang moved to approve C 2010-293, seconded by Mr. Furfaro and unanimously carried. Chair Asing: Next item please. Mr. Watanabe: Next item is C 2010-294. C 2010-294 Communication (10/11/2010) from the Fire Chief, requesting Council approval to accept a donation of $100.00 from Mrs. Margaret Enverso, that would be deposited to the Public Safety Firefighters, Other Services grant account for future use in recognizing members: Mr. Furfaro moved to approve C 2010-294 with an appropriate thank-you letter, seconded by Mr. Bynum, and unanimously carried. Chair Asing: Next item please. Mr. Watanabe: Next item Chair is a Legal Document, C 2010-295. LEGAL DOCUMENT: C 2010-295 Communication (10/13/2010) from the Director of Housing, requesting that the Council authorize the County Clerk to execute the Housing Agreement (In-Lieu Fees/Lien Applicable to Subdivision No. 5-2009-16) for Kahu`aina Plantation II Subdivision, located in Waipake, Hanalei, Kauai, Hawaii, wherein the applicant has agreed to satisfy the workforce housing assessment with payment of In-Lieu fees for the required number of 18.9 workforce housing units: • Housing Agreement (In-Lieu Fees/Lien Applicable to Subdivision No. 5-2009-16); TMK: (4) 5-1-03:06, 10 and 29; Falko Partners, LLC (Applicant) Chair Asing: Councilmembers let's have discussion on this item. I believe that the way the item was written, I believe that it's not up to us but I will have Al explain this further. There being no objections, the rules were suspended. Mr. Castillo: Good afternoon Council Chair, Councilmember, Al Castillo County Attorney. You're absolutely correct. The transmission and the wording of the transmission is an error. It should have been a courteousy communication regarding the agreement that was done. I worked on this project for a year now and it was supposed to be a courteousy communication. Housing ordinance 860 does not require what the agenda item calls for, so based on that you know I think that agenda item, the way it's worded, it's improperly worded and placed on the agenda for your consideration. So whichever way you want to handle it. • 35 COUNCIL MEETING October 27, 2010 Chair Asing: Thank you. I would suggest that we receive the item so that it can be reworked and reworded in its proper manner before it's placed on the agenda. Mr. Castillo: Okay, thank you. Mr. Kawakami moved to receive C 2010-295 for the record, seconded by Mr. Chang. Chair Asing: Any discussion? Ms. Kawahara: Is there a difference between receive and withdraw? Chair Asing: Pardon me? Ms. Kawahara: Is there a difference between receive and withdraw? Chair Asing: No, not really. Ms. Kawahara: In this case? Oh okay. Chair Asing: No. It's the same thing. Ms. Kawahara: Thanks. Chair Asing: Any further discussion? If not. All those in favor say aye. Councilmembers: Aye. Chair Asing: Oppose say "no". Motion carried. The motion to receive C 2010-295 for the record was then put, and unanimously carried. Chair Asing: Next item please. Mr. Watanabe: Next item is a Committee Report. COMMITTEE REPORT: ECONOMIC DEVELOPMENT/HOUSING COMMITTEE A report (No. CR-EDH 2010-4) submitted by the Economic Development/Housing Committee, recommending that the following be received for the record: "Communication (9/20/2010) from Committee Chair Chang, requesting the presence of Bob Craver, Director of the Kauai Marathon, to provide a post race update on the 2010 Kauai Marathon," Mr. Furfaro moved for approval of the report, seconded by Mr. Bynum, and unanimously carried. 36 • COUNCIL MEETING October 27, 2010 Chair Asing: Next item please. Hang on. Short recess. There being no objections, the Council recessed 2:10 p.m. The Council reconvened at 2:14 p.m., and proceeded as follows: Chair Asing: The meeting is now called back to order, with that, next item please. Mr. Watanabe: Next item is Resolution No. 2010-54. RESOLUTION: Resolution 2010-54, RESOLUTION ESTABLISHING NO-PARKING AT ANY TIME ALONG PORTIONS OF HALEILIO ROAD AND APANA ROAD, KAWAIHAU DISTRICT, COUNTY OF KAUAI: Mr. Bynum moved to approve Resolution No. 2010-54, seconded by Mr. Chang, and carried by the following vote: FOR APPROVAL: AGAINST APPROVAL: EXCUSED & NOT VOTING: Mr. Watanabe: Chair Asing: Mr. Watanabe: BILLS FOR FIRST READING: Bynum, Chang, Furfaro, Kawahara Kawakami, Asing TOTAL - 6, None TOTAL - 0, Kaneshiro TOTAL - 1. Six (6) ayes Mr. Chair. Next item please. Next item is a bill for first reading. Proposed Draft Bill (No. 2385) - A BILL FOR AN ORDINANCE TO AMEND ORDINANCE NO. B-2010-705, AS AMENDED, RELATING TO THE OPERATING BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII FOR THE FISCAL YEAR JULY 1, 2010 THROUGH JUNE 30, 2011, BY REVISING THE SURPLUS AND APPROPRIATIONS ESTIMATED IN THE GENERAL FUND ($90,211 - County Auditor) Mr. Furfaro: I would like to have a motion to defer this please. Mr. Furfaro moved to defer Proposed Draft Bill No. 2385. Mr. Watanabe: Chair please note we have a written testimony from Mr. Mickens and Barbara Robeson. Mr. Furfaro: Barbara Robeson is the testimony that was circulated earlier? Mr. Watanabe: Yes. Mr. Furfaro: Thank you very much. 37 COUNCIL MEETING October 27, 2010 Chair Asing: With that, I'd like to suspend the rules. There being no objections, the rules were suspended. Mr. Mickens: Thank you Kaipo, for the record Glenn Mickens. You have a copy of my testimony, let me read it for the record please, it's very short, World Series is on, so I want to get out of here fast. Mr. Furfaro: So you don't need to throw it high and inside? Mr. Mickens: No, no... Mr. Furfaro: Okay, just wanted to check. Mr. Mickens: Not with Lee pitching. One of the top priorities on my friend Ernie Pasion's Audit list is the paving and repaving of our three hund"red (300) miles of county roads. I have pursued this issue for seventeen (17) years without resolution and.even~though Dickie was good enough to arrange a meeting with Public Works over a year ago, nothing has happened. I do believe that Ed Renaud is trying to move this issue forward but I am awaiting results. I am never in favor of creating more positions in the County to add to the financial burden we already have unless it can be proven that the new position is absolutely necessary. Since Charter Amendment thirty-two (32) established the Office of the County Auditor, and Section 32.04c states, "The Legislative auditor, program analyst 5 and program support tech positions in the Office of the County Clerk on June 30, 2009 shall continue with the Office of the County Auditor on July 1, 2009. Does this mean that since Ernie is asking for these positions to be filled, they were only dollar funded at that time and never previously filled? And if Ernie needs these positions to get his office up and running I would definitely be in favor of Bill 2385. The question that arises is if Ordinance 32 was passed as Ernie... somebody asking the question... November 28, 2008 and here we are two (2) years later with this office not up and running, why are we still in the organizational stage at this moment? Anyway I'm completely in support of my friend Ernie what he wants to do to get these two (2) positions, it's a lot of money but hey... if that is what it's going to take to have a independent audit, I'm completely for it. Thank you. Chair Asing: Thank you. Is there anyone else who wants to testify? If not, I'd like to call the meeting back to order. We have a motion and a seconded to defer. There being no one else to speak on this matter, the meeting was called back to order, and proceeded as follows: Mr. Watanabe: Chair? We need a second. Mr. Furfaro: Kawakami was the seconded. 38 COUNCIL MEETING October 27, 2010 Chair Asing: Thank you. There'd be no discussion on the a motion to defer... all those in favor say aye. Councilmembers: Aye. Chair Asing: Oppose say "no". Motion carried. Mr. Furfaro moved to defer Proposed Draft Bill No. 2395, seconded by Mr. Kawakami, and unanimously carried. Mr. Watanabe: No further business Council Chair. ADJOURNMENT. There being no further business, the meeting was adjourned at 2:18 p.m. Respectfully submitted, PETER A. NAKAMURA County Clerk /ds