HomeMy WebLinkAbout121211 Meeting_Minutes_APPROVED COUNTY
Minutes of Meeting
OPEN SESSION
Board/Committee: COST CONTROL COMMISSION Meeting Date I December 12, 2011
Location Mo'ikeha Building—Liquor Conference Room 3 Start of Meeting: 1:31 p.m. End of Meeting: 2:30 p.m.
Present Chair Sandi Sterker; Vice-Chair Dirk Apao; Members: Lawrence Chaffin, Jr.; Arryl Kaneshiro; Glen Takenouchi
Also Board& Commissions Office Staff. Support Clerk Mercedes Youn; Administrative Aide Paula Morikami; Administrator John
Isobe.
Excused Members: Brant Fuchigami and Laurie Yoshida
Absent
SUBJECT DISCUSSION ACTION
Call To Order With a quorum being present, Chair Sterker
called the meeting to order at 1:31 p.m.
Approval of Regular Open Session Minutes of November 14, 2011 Mr. Chaffin moved to approve the minutes as
Minutes circulated. Mr. Apao seconded the motion.
Motion carried 5:0
Business CCC 2011-08 Review and discussion of the County's real property tax
exemptions and rate setting procedures. (Ongoing)
Chair Sterker called for a motion to receive item CCC 2011-08.
Mr. Isobe suggested that the Commission defer this matter for continued
discussion and deliberation in 2012. He indicated that although the
Commission has begun the review process and has received public
testimony regarding some of the existing property tax exemptions, to date,
no decisions and/or recommendation have been made.
Mr. Isobe further explained that at the last meeting, the Commission
reviewed and discussed the exemption for the credit unions, including
hearing a presentation from Councilmember Bynum related to the Home
Owner's Exemption. However, there were still a multitude of other tax
exemptions that need to be reviewed and discussed.
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Open Session
December 12, 2011 Page 2
SUBJECT DISCUSSION ACTION
Mr. Isobe said that if a motion is made to "receive" this item, the issue
would not reappear on future agendas and that is why he suggested that the
Commission defer this matter rather than "receiving it for the record".
Chair Sterker agreed and felt that the Commission should have a general
discussion on the various property tax exemptions and how the members
want to proceed on this issue in 2012.
Commissioner Chaffin voiced his concern that the time and effort
expended by the Cost Control Commission in reviewing the property tax
exemptions may not result in meaningful recommendations by the body.
Commissioner Kaneshiro requested that the Commission be provided with
the purpose and date of enactment for each of the various property tax
exemptions and indicated that this background information would be
useful in providing background on the policy intent as to why the
exemption were being provided. For example, he questioned the original
intent behind why Credit Unions are being provided with a tax exemption.
Additionally, Commissioner Kaneshiro questioned whether it would be
appropriate to request financial information from the various Credit Unions
regarding what percentage of their overall expenses would payment of
property taxes be and how much of an impact would it have on their total
assets/revenues.
Mr. Isobe indicated that he would ask staff to make an inquiry with Mr.
Melvin Chiba, President/CEO of Kauai Community Federal Credit Union,
to see whether this type of information is available and if the Credit Unions
would be comfortable in providing the information to the Commission.
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Open Session
December 12, 2011 Page 3
SUBJECT DISCUSSION ACTION
Other members expressed concern that they lacked the technical
background and knowledge to adequately determine whether the various
tax exemptions should be maintained, revised or eliminated.
Mr. Isobe assured that members that the County Real Property Tax
Division staff would be available to provide technical information and
answer questions to facilitate and assist the Commission's deliberations
and decision making. He further acknowledged that this is a very complex
subject that will stimulate much discussion and debate. However, in the
end, "it really boils down to a policy call on what you believe is good for
the County and fair to the taxpayer."
He also indicated that the City and County of Honolulu(C&C) was going
through a similar effort of reviewing their real property exemptions and
asked whether the members wanted to invite someone from the C&C
Property Tax Advisory Commission to one of the future Cost Control
Commission meetings to provide some added insight and direction.
Chair Sterker suggested that Mr. Isobe contact Mr. Lowell Kalapa,
Director of the Tax Foundation and member of the C&C Property Tax
Advisory Commission, to see if he would be willing to meet the Cost
Control Commission sometime during the start of the new year.
Mr. Takenouchi moved to defer item CCC 2011-
Mr. Isobe acknowledged the request and stated that he would contact Mr. 08. Mr. Apao seconded the motion. Motion
Kalapa and make the necessary arrangements. carried 5:0
Chair Sterker called for a motion to receive the additional written
informational testimony dated 11/29/11 from Mr. Melvin Chiba, President
and CEO of the Kaua'i Community Federal Credit Union as requested at
the November 14, 2011 Cost Control Commission meeting.
Mr. Chaffin moved to receive the additional
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December 12, 2011 Page 4
SUBJECT DISCUSSION ACTION
testimony. Mr. Apao seconded the motion.
Motion carried 5:0.
CCC 20011-19 Discussion and decision-making on the proposed draft of
the 2011 Cost Control Commission Annual Report.
Chair Sterker called for a motion to approve the 2011 Cost Control
Commission Annual Report as submitted.
Commissioner Chaffin requested that Section I, of the draft Annual Report
"Relating to County Employee Training and Consolidation of Personnel
Functions"be amended to revise the order in which the top six (6) most
desired trainings are listed in the Report. He recommended that the
existing item c. "Workplace Violence"be interchanged with item b.
"Leadership/Supervisory Management". Commissioner Chaffin indicated
that he believed that the Cost Control Commission felt that"Workplace
Violence" training should be given a higher priority than
"Leadership/Supervisor Management".
He further requested that the signature page of the Report be revised to Mr. Chaffin moved to amend the draft Annual
properly reflect his name as "Lawrence Chaffin Jr." Report. Seconded by Mr. Apao. Motion carried
5:0
Chair Sterker called for the approval of the County Cost Control
Commission 2011 Annual Report, as amended. Mr. Chaffin moved to approve the draft County
Cost Control Commission 2011 Annual Report,as
amended. Mr.Apao seconded the motion. Motion
carried 5:0
Mr. Isobe informed the Commission that the 2011 Cost Control
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SUBJECT DISCUSSION ACTION
Commission Annual Report will be published in the Garden Island
Newspaper as required(Section 28.05, Kauai County Charter).
CCC 2011-20 Cost Control Commission Meeting Schedule for 2012.
Chair Sterker pointed out that the June 18 meeting does not fall on the 2nd Mr. Chaffin moved to accept the Cost Control
Monday of that month because the 2nd Monday in June 2012 fall on the Meeting Schedule for 2012. Mr. Apao seconded
Kamehameha Day holiday. the motion. Motion carried 5:0.
CCC 2011-21 Election of Chair and Vice-Chair for 2012. Chair Sterker moved to elect Commissioner Apao
to the position as Chair. Mr.Chaffin seconded the
motion. Motion carried 5:0
Chair Sterker moved to elect Commissioner
Lawrence Chaffin, Jr. to the position of Vice-
Chair. Mr. Takenouchi seconded the motion.
Motion carried 5:0.
Announcements Next Meeting: January 9, 2012 at 1:30 p.m. in the Liquor Conference
Room 3.
Adjournment Mr. Takenouchi moved to adjourn the meeting at
2:30 p.m. Mr. Kaneshiro seconded the motion.
Motion carried 5:0
Submitted by: Reviewed and Approved by:
Mercedes Youn, Staff Support Clerk Dirk Apao, Chair
(X) Approved as circulated on 01/09/12
( ) Approved as amended. See minutes of meeting.