HomeMy WebLinkAbout021312_Agenda Packet Dirk Apao Members:
Chair Sandi Sterker
Brant Fuchigami
Lawrence Chaffin Jr, Arryl Kaneshiro
Vice-Chair Glen Takenouchi
Laurie Yoshida
COUNTY OF KAUAI COST CONTROL COMMISSION D
NOTICE OF MEETING AND AGENDA
Monday, February 131, 2012
1:30 p.m. or shortly thereafter rr
* F
12
Mo'ikeha Building, Liquor Conference Room 3
4444 Rice Street, Lihue, HI 96766
CALL TO ORDER
APPROVAL OF MINUTES
Regular Open Session Minutes of January 9, 2012
COMMUNICATIONS
CCC 2012-02 Communication dated 01111/12 from Council Chair Jay Furfaro, to the Cost
Control Commission regarding the Fourth Quarter Report relating to vacancies,
new hires, reallocations, and promotions provided by the Department of
Personnel Services.
BUSINESS
CCC 2011- 08 Review and discussion of the County's real property tax exemptions and rate
setting procedures. (On-going)
(h) Communication dated 12/141/11 from Director of Finance Wallace G.
Rezentes Jr., to Chair Sterker requesting additional time to update the list of
exemptions to include the purpose and intent behind each property tax
exemption and the date of enactment. (Deferred to 031112/12)
ANNOUNCEMENTS
Next meeting: Monday, March 12, 2012 at 1:30 p.m. at the Mo'ikeha Building, Liquor Conference
Room 3.
NOTICE OF EXECUTIVE SESSION
Pursuant to Hawaii Revised Statutes, §92-7(a), the Commission may, when deemed necessary,
hold an Executive Session on any agenda item without written public notice if the Executive
Session was not anticipated in advance. Any such Executive Session shall be held pursuant to
H.R.S. §92-4 and §92-9 and shall be limited to those items described in H.R.S. §92-5(a).
Discussions held in Executive Session are closed to the public.
An Equal Opportunity Emplt�yer
ADJOURNMENT
PUBLIC COMMENTS and TESTIMONY
Persons wishing to offer comments are encouraged to submit written testimony at least
24-hours prior to the meeting indicating:
Z__
I Your name and if applicable, your position/title and organization you are
representing
1 The ac,le nda item that you are providing comments on and
Z
3. Whether you will be testifying in person or submitting written comment only.
4. If you are unable to submit your testimony at least 24 hours prior to the meeting,
please provide 10 copies of your written testimony at the meeting.
The length of time allocated to person (s)wishing to present verbal testimony may be limited
at the discretion of the chairperson or presiding member.
cc: First Deputy County Attorney Amy Esaki
Send written testimony t(y.
Cost Control Commission
Attn: Mercedes Youn
Office Boards and Commissions
4444 Rice Street, Suite 150
Lihue, HI 96766
E-Mail: Ln1iNVCo1un0,kauqn'.gov
Phone: (808) 241-4920 Fax: (808) 241-5127
SPECIAL ASSISTANCE
I If you need an alternate format or an auxiliary aid to participate, please contact the Boards and
Commissions Support Clerk at (808) 241-4920 at least five (5) working days prior to the
meeting.
P a g e
Cost Control Commission—February 13, 2012
URAF~T�T�o
COUNTY OF KAUAI 44.2,
Minutes of Meeting
OPEN SESSION
Board/Committee: COST CONTROL COMMISSION Meeting Date I January 09, 2012
Location Mo'ikeha BuildingLiquor Conference Room 3 Start of Meeting: 1:31 p.m. I End of Meeting: 3:15 p.m.
Present Chair Dirk Apao; Vice-Chair Lawrence Chaffin Jr., Members: Sandi Sterker, Arryl Kaneshiro, Glen Takeriouchi, and Laurie Yoshida.
Also First Deputy County Attorney Amy Esaki, Board& Commission's Office Staff- Support Clerk Mercedes Youn; Administrator
Paula Morikami; Lowell, Kalapa, Tax Foundation of Hawaii; and Council Chair Jay Furfaro.
Public testifiers Dennis Tanimoto, President of the 14awai'i Credit Union League; Scot TSUchiyama, Manager of the Kekaha Federal
Credit Union; and Melvin Chiba, President ofthe Kaua'i Community Federal Credit Union.
l"Acused Member: Brant Fuchigami
Absent
SUBJECT DISCUSSION
ACTION
Call To Order With a quorum being present, Chair Apao called
the meetiru),to order at 131 p.m.
Approval of Regular Open Session Minutes of December 12, 2011, Ms. Sterker moved to approve the minutes as
Minutes circulated. Mr. Takenouchi seconded the
motion. Motion carried 6:0
Business CCC 2012-01 Memorandum dated 12/15111 from Council Chair Jay ------
Furfaro, requesting agenda time at the January 09, 2012 Cost Control
Commission's meeting to provide a briefing on the County's Staffing
Guidelines, Comprehensive Annual Financial Report (CAFR), and the
Council's new Travel Policy.
Chair Apao, called for a motion to receive item CCC 2012-01. Ms. Sterker moved to receive. Mr. Chaffin
seconded the motion.
Motion carried 6:0
Council Chair Jay Furlaro conveyed his sincere thanks to the Commission
members for their service to the people of Kaua'i. Fle acknowledged Paula
Morikami as the new Administrator for the Office of Boards and
Cost Control Commission
Open Session
January 09, 2012 Page 2
SUBJECT 1' DISCUSSION ACTION
Commissions, Chair Furfaro extended his appreciation to John Isobe for
all of the years of service in the County,
Chair Furfaro began by expressing the importance of having clarity and
understanding when it comes to the terms "must" and "shall" which are
mandatory and that the term "may" is permissive. Chair Furfaro explained
that Section 19,14 of the charter states "Any unappropriated surplus and
any unencumbered balances of any appropriations in any fund at the end of
any fiscal year shall be available for appropriation for the succeeding fiscal
year. The mayor shall certify to the Council the arnount of any
unappropriated surplus or unencumbered balances by January 1 following
the close of the fiscal year." Ile said that the Cost Control Commission
should ask the Finance Department for that information and he stressed
low important it is for the Council to be clear on what the reserves are.
Chair Furfaro also shared information on the County's housing agency's
operating projection for the Kalapa Village (Phases I and 4) and Paanau
Village rental projects. Mr. Chaffin asked whether the housing agency had
budgeted for ongoing maintenance for the projects. Chair Furtaro said yes,
and suggested that the Commission invite the housing agency to a fixture
meeting.
Chair Furfaro referred to the summary report that showed 44 County
vacancies for the positions that were approved in the budget as well as 31
Kauai Police Department vacancies. The vacancies represent `fi3.4 million
in unused funds. Ile said that he is not concerned with the amount
identified with the Police Department because until they have filled those
vacancies, the Council has kept the Police Department's overtime line
compressed. Ile expressed his concern with the process in which the
administration can use the funds allocated for the positions outside of the
Cost Control Commission
Open Session
January 09, 2012 Page 3
SUBJECT DISCUSSION ACTION
----------
Police Department and submit new positions in the County without first
going through Council. He said that there needs to be stronger control
mechanisms because the administration can use a vacancy, recode the
position and staff a new position which was not approved and budgeted
for.
Ms. Sterker said that it was her understanding that any unfilled vacant
position that is on the list is supposed to be eliminated after a certain
period. Chair Furfaro expressed his discontent with the DI"S (Department
of Personnel Services) summary report because the administration has
never shared it with the Council. If you read the charter it states that at the
end of the day one of the main ftinctions of the Council is to review the
budget and identify the revenues and the appropriated services for the
County. lie said that he had recently asked the administration for other
survey information but still needs to massage his request. He explained
that the responsibility of the Cost Control Commission is to review
personnel costs, real property taxes, travel budgets, contract procedures,
and although the Commission does not make the polices, the Commission
can make recommendations which should be done semi-annually. Ile
pointed out that according to the charter the Commission shall prepare and
advertise a written annual report summarizing its recommendations prior to
the end of each calendar year. He asked the Commission to consider
placing on future agendas the four issues relating to housing, summary of
the police recruitment issues,medical benefit calculation, and the staffing
guidelines.
Another concerti he raised related to the benefit calculation for medical
covet-age, he felt that the structure was not evenly tiered. He explained that
there are secretarial positions that earn less than $45,000 a year who are
taking g 1 $108 hit on their medical premium, compared to an engi
Cast Control Commission
Open Session
.January 09, 2012 Page 4
SUBJECT DISCUSSION ACTION
__. _ _
position that earns $83,000 a year that pays the same amount. Chair
Furfaro felt that current structure seems unfair and that the payments
should be tiered based on earnings and that the structure should be re-
evaluated.
Chair Furfaro provided the Commission members with a copy of the 2010
l aua'i Planning & Action Alliance Report and advised the members to get
a copy of the surplus certificate in time for the February meeting. Chair
Furfaro pointed out that a lot of attention will be on the TAT (Transient
Accommodation Tax)and as far as he is concerned the County will not be
seeing any growth in the TAT tax for at least three years. The net benefit
will be seen by the State and not the County.
Chair Furfaro briefly explained the basic requirements for travel. He
mentioned that the Council is a separate legislative body and that the travel
policies that are in place for the administration does not cover the Council.
The Council directs its own operating budget and has its own policy.
Ms. Sterker asked if it would be helpful to the Commission to see the
previous travel policy and then compare them to the current travel policy.
Chair Furfaro said that the biggest change to the Council's travel policy is
that he requires an explanation on the rationale behind the travel and
allocates monies to each Councilmember accordingly. He noted that he
does not know what is in the administration's policy.
Mr. Chaffin thanked Chair Furfaro for submitting the information, but felt
that the information should have been provided to the members prior to the
meeting.
Cost Control Commission
Open Session
January 09, 2012 Page 5
_ ____ __._ ._. ._ _ ______—
SUBJECT 1 DISCUSSION ACTION
Ms. Sterker said that after hearing Chair Furfaro's reaction to the excess
funds, she asked whether it would be worthwhile for the Commission to go
back to see what the original Cost Control Commission's recommendation
was and compare it to the present issue. Chair Furfaro said that County's
Comprehensive Annual Financial Report, released on December 15, shows
the administration ended fiscal year 2011 with a $51.36 million surplus.
But after allocating money to other funds, debt service and a $23 million
reserve provision, the surplus became a$2.64 million shortfall. The
reserve fund approved last year by the Council during the budget review
sessions was passed through a resolution, which created the fund as a
policy only. Chair Furfaro stated that the Council should be able to work
closely with the administration. He fielt that the public should have the
information so that they can understand what the County can fall back on
and that having a reserve fiord is wise for the County. Ms. Sterker asked
where the reserve funds go. Chair Furfaro said that the reserve fund is
broken down to see how it can be used and that he believes 1.5% is in the
resolution.
CCC 2011-08 Review and discussion of the County's real property tax
exemptions and rate setting procedures. (Ongoing)
(i) Communication dated 12/14/11 from Chair Sandi Sterker to Wally
Rezentes, Jr., Director of F=inance, regarding a request to update the list of
exemptions to include the purpose and intent behind each property tax
exemption and the date of enactment.
Chair Apao called for a motion to receive communication (i). Ms. Yoshida moved to receive the
communication. Mr. Z akenouchi seconded the
motion.
Motion carried G'U
Cost Control Commission
Open Session
January 09, 2012. Page 6
SUBJECT DISCUSSION
ACTION
(j) Communication dated 12/14111 from Wallace Rezentes, Jr., Director of
Finance, to Chair Sandi Sterker, requesting additional time to update the
list of exemptions to include the purpose and intent behind each property
tax exemption and the date of enactment.
Chair Apao called for a motion to defer item (j) to the March 12, 2012
meeting and continue discussion. Ms. Sterker moved to defer the item to the
March rneeting pending receipt of the list of
exemptions to include the purpose and intent
behind each property tax exemption and the date
of enactment. Mr. Chaffin seconded the motion.
Motion carried 6:0
(k) Presentation by Lowell Kalapa, Tax Foundation of Hawaii, relating to
the City & County of Honolulu's Real Property 'fax Advisory Commission
schedule, decision making process, and report findings.
Chair Apao called for the motion to receive the December 2011 Ms. Sterker moved to receive. Mr. Chaffin
Preliminary Report of the Real Property Tax.Advisory Commission. seconded the motion.
(A copy of the report is on file with the Office of Boards and Motion carried 6:0
Commissions)
Mr. Lowell Kalapa explained that the twenty-six page report was a result of
a request from the City Council. "I'he Tax Advisory Commission is made
up of seven citizens whose task is to undertake an objective review of the
City & County of Honolulu's real property tax system. Mr. Kalapa
suggested that the Commission may want to consider some of the
information and the Commission's recommendations that are in the report
when they review the County's real propert tax exem bons Ile also
Cost Control Commission
Open Session
January 09, 2012 Page 7
SUBJ Fur DISCUSSION ACTION
suggested that perhaps the Cost Control Commission should do away with
all real property exemptions and start from scratch. lie also mentioned that
non-profit, charitable organizations which do not have 501-c3 clearance
should not receive tax advantages.
Public testifiers
Mr. Dennis Tanirnoto, President of the f lawai'i Credit Union League,
submitted written testimony, which is attached hereto. Mr. Tanimoto
expressed opposition to repeal or reduce the real property tax exemption of
credits.
Mr. Scot Tsuchiyama, Maliager/Treasurer of the Kekaha Federal Credit
Union, submitted written testimony, which is attached hereto.
Mr. Melvin Chiba, President of the KaLia'i Community Federal Credit
Union, provided the Commission with all update on the status of the credit
union financial report to include the percentage of taxes paid by the credit
union. He noted that the report Would be available in mid-January and that
he would be submitting the report to the Office of Boards and
Commissions for distribution to the Commission prior to the February 1.3`"
meeting.
—----------
Announcements Next Meeting: February 13, 2012 at 1:30 p.m. ill the Liquor Conference
Room 3,
----------
Adjournment Ms. Sterker moved to adjourn the meeting at
3:15 pm. Mr. Takenouchi seconded the motion.
Motion carried 6:0
-----------
Cost Control Commission
Open Session
January 09, 2012 Page 8
Submitted by: Reviewed and Approved by:
Mercedes Youn, Staff Support Clerk Dirk Apao, Chair
O Approved as circulated
Approved as amended. See Minutes of meeting.
COUNTY COUNCIL OFFICE OF THE COUNTY CLERK
Jay Furfaro,Chair
JoAnn A,Yukimura,Vice Chair Ricky Watanabe,Interim County Clerk
'rim Byrium CO 1, Eduardo Topenio,Jr-,Deputy County Clerk
Dickie Chanc,
KipuKai Kuali'l
Telephone(808)241-4188
Nadine K,Nakamura Fax (808)_241-6349
Mel Rapozo Email cokcouncil1&k4uaigov
Council Services Division
4396 Rice Street, Suite 209
LThu'e,Kaua*i.Hawaii 967,66
January 11, 2012
TO- Paula Morikami, Boards and Commissions Administrator
Attn: Cost Control Commission
FROM: Jay Furfaro, Council Chair
RE- FOURTH QUARTER REPORT RELATING TO VACANCIES, NEW
HIRES, REALLOCATIONS, AND PROMOTIONS PROVIDED BY
THE DEPARTMENT OF PERSONNEL SERVICES
As a follow-up from the Januar y 10, 2012 Special Council Meeting for the
Boards and Commissions Interviews, it was requested that the Fourth Quarter
Report relating to vacancies, new hires, reallocations, and promotions, which is
provided by the Department of Personnel Services, be forwarded to the Cost Control
Commission for its information.
Thank you for your attention to this matter. Should you have any questions
pertaining to this matter, please feel free to call me at 241-4098.
Attachment
ee: Gary K. Heu, Managing Director
AB/wa2012-429a
CCC 2012-02
AN EQUAL OPPORLU'N'TTY EMPLOYER
Bernard P. Carvatho, Jr. Of,
Ntalcolin C. Fernandez
Mayor Dirtcior of Ptr sorjncj Sccrv�ccs
Ir
G ary K. Heu
Managing Director
DEPART TENT OF PERSONNEL SERVICES R LE E I V F E)
County of Kana'i, State of Hawai'i
4444 Ric_-Stream, Suite 140,L-1hu'e,Hawai'i 96766 AUG I i Alo :58
TEL(8081241-4956 FAX(808)241-6593
August 8, 2011 0�7 F 1('E
THE COUN-1,
To: Honorable Chairman of the Kaua'i County Council
Via: Mavor Bernard P, Carvalho, Jr.
From: Malcolm C. Fernandez, Director of Pe4rsoel Services,
Subject: KAUA'I COUNTY BUDGET ORDENANCE
Pursuant to Section 20 of the County Budget Ordinance, the fourth quarter reports
(April-.lone) relative to vacancies,new hires, reallocations and promotions are attached for your
perusal.
Should you have any questions relative to this matter, please do not hesitate to contact
me.
Att.
AN EQ UAL OPPOR TUAITY E WL 0 YER
C, __-)�_o t""'! — a ZI I
K)
Vacant Positions June 30,2011
Department Pas. Classification 7-itte Salary range -�20nt*Pay Effective Date Recruitment Status Funding Source
County Ahny E-71 Law Clerk Exempt EXempt 12105/06 Exempt Appointment County funded
20-Legal Clerk III SR-14,BU-3 $2,702M 6/1/2011 Applications are being reviewed County funded
County Auditor E-92 Program Support Technician I SR-11,BU-3 $2,403,00 2/112011 Exempt Appointment County funded
Civil Defense 9402 Grants Specialist 11 SR-20,BU-13 Contract 12/1612010 Contract - ---- Federally funded
County Clerk E-53 Legislative Assistant Exempt Exempt 04/01111 Exempt Appointment County funded
-Legislative Assista Exempt
_ff 66 nt Exempt 03/01/11 Exempt Appointment County funded
8133 Election Clerk 11(Unclassified) SR-10,BU-03 ---i-2,313.00 --7-2131110 Contract County funded
9136 Election Clerk if(Unclassified-) 'SR-10,BU-3 $2,313.00 10/30/10 Contract County funded
9137 Election Clerk 11(Unclassified) SR-10,BU-3 $2,31100 12/31/10 Contract County funded
Elderly Affairs 130 Program Specialist it(Aging) SR-22,BU-13 $3,798,00 05131111 Applications are being reviewed County funded
LT-139 Community Service Worker SR-09,BU-3 $2,225.00 Applications are being reviewed County funded
9557 Pro 2m Specialist ii(Aging) SR•22,BU-13 $3,798.00 01131/11 Not recruiting;no request received State funded
Finance 201 Budget Administrtor EM-5-- $5,980.00 06101/11 Not recruiting;no request received County funded
2-33 Tax Collection Assistant- SR-15,BU-3 $2,81100 03/29/11 Applications are being reviewed County funded
238 Driver License Examiner/inspector
SR-16,BU-3 ---$2-,922-00 04/01/11 Applications are being reviewed State funded
Information Technol2ff Specialist IV SR-26,BU-13 $4,625.00 12/05108 Not recruiting;no request received County funded'
272 Senior Account Clerk SR-13,BU-3 $2,601.00 04/25/11 Names were referred 05113/11 County funded
27-3 information Technoln2y.specialist IV - SR-26,BU-13 $4,625,00 01/01/10 Not recruiting;no request received Coun funded
T-274 Real Prop Certified Residential Appraiser(UC Contract
i Contract 01/31/11 Not recruiting;no request received County funded
286 Tax Clerk SR-12,BU-3 $2,503.00 10/16/10 Not recruitin2;no request received
288 Driver License Exam/inspector SR-16,BU-3 County dollar funded
$2,92100 11101108 Not recruiting;no request received Coun funded -
Flee 1547 Special Projects Officer Contract Contract 12101/10 Not recruiting;no request received County dollar funded
8-0 Fire Captain SR-25,BD-1-1 -$5,247.00 05131/11 Names referred 05125/11 County funded
TO 1 Fire Fighter III SR-21,BU-11 -$4,485.00 -02106/11 Names referred 05/25/11 County fu funded
702 Senior Clerk 6R•10,BU-3 $2,313,00 04101/09 Not recruiting;no request received County dollar funded
770 Fire Fighter I SR-17,BU-11 $3,835.00 09101110 Not recruitin2;no request received County dollar funded
776 Fire Fighter Trainee SR-15,BU-11 $3,546.00 03/01/11 Not recruiting;no request received County funded
779 Fire Fighter I SR-17,BU-11 $21-,83500 09/01/10 Not recruiting;no request received Coun funded
781 Tire,Fighter I SR-17,BU-11 $3,835.00 007/11 Not recruiting;no request received County fu I nded
Housing 9539 Housing Assistance Specialist III SR-20,BU-13 $3,511.00 06/30/11 Not recruiting;no request received Federally dollar funded
1- 9541 Senior Clerk SR-10,BU-3 $2,313,00 12/3-1109 Not recruiting;no request received Federally dollar funded
19661 Housing Assistance Specialist I SR-16,SU-13 $3,002.00 02/16111 Not recruiting;no request received Federally dollar funded
�Mayor 19107 CMCA Oulreach Coordinator Contract Contract 06/30/11 Exempt Appointment Federally funded
Page 1 of 6
. .
Vacant Positions June 30,ZQII
epartment lossification Title Salary range Monthly Pay Effective Date Recruitment Status
FTa�ks_& 0 Sprinkler Systern Repair Worker BO-05,BU-1 $3,203,00 06/17/06 Not rpnmffinr nn rOnues(received Funding Source
County dollar funded
'1014 ark Caretaker 60-02,BU-I $2,769,00 06/01/09 lko�ropmifl--uest received ounty funded
1205 Park Caretaker[I BC-02,BU-1 $2,769M 04/18111 Not recin 11fing n�uest received County funded
1209 Park Caretaker I BC-02,BU-1 $21769M 04/16/11 Not recruting,no request received
1 12 Park Security Officer I County funded
1345 Truck Driver - SR-13,BU-3 $2,601.00 09/12/09 Pending results of;;PlPr,.fir)n print-mcc '�cumy f�Tn'ded -__
1625 Chief of Planning k Davei,�nf SC-06,BU-1 $3,203,00 12/31/08 Position being reviewed by department County funded
1633 Park Caretaker EM-03 $5,424.00 03/01/11 Names referred 02/04/11 County funded
BC-02,BU-1 $2,769,00 01/01/09 Pending pro--by-ent physical results
1639 Park Caretaker County funded
BC-02,BLLI $2,769.00 12/01/08 Eligible list established 03/05/11
1861 J(Departmental Perri Specialist il County dollar funded
1986 Grounds Helper(PT) SR-22,SU-13 $3,798,00 11/04/10 Not Countyd funded
60-01,BU-1 $2,731.00 04/07/09 Not recr,Ofin---questrepeived County dollar funded
T071�1 Recreation Aqqiqfqnf SR-09,BU-3
$2,2291,00 03/31/08 Department handles(summer fun,winter fun,etc.) County funded
10152 Recreation Assistant(seasonal) SR-09,BU.3
$2,225M 03/31/08 Department handles(summer fun,winter fun,etc,) County funded
10 0 Janitor I(seasonal) BC-01 BU-1 $2,731,00 07/20/07 Department he County funded
10582 Janitor l(_,se�ocnan
Planning 2004 Planner Vil BC-01,BU-1 $2,731 M 06/09/08 Department hanrfl-1.,f winter fun,etc,) Taunty-funded
SR-28,BU-13 $5,202,00 11/07/10 Applications are being reviewed County funded
2009 Planner SR-16,SU-13 $3,002,00 10/01/10 Names referred
'2012 Planner V SR-24,BU-13 it, County dollar funded
lot recruiting;no request received County funded
2025 Planner 11 SR.181 BU.13 $3,249.00 10/01/10 Names referred 03/14ifl_
T-2'017 Account Clerk SR-I 1,BU-3 $2,403,00 11/01/09 Not re ounty funded
police 310 P ice Records Unit Supervisor SR-20,6U-4 $3,420,00 08/31109 Not re
I I Radio Dispatcher 1 SR-171 BU-3 $3,043,00 01/16/11 No re
341 Police Records Clerk SR-1 1,BU-3 $2403,00 12/16/06 Not re
342 Police Records Clerk SR-I 1,BU-3 240300 09/19/08 "1-,--
345 Secretary SR-16,BU-3 292 00 07/01/08 can o ar,un ed
346 3quest received
Personnel CierkTI___ SR-13,BU-3 ......_, County dollar funded___
T-353--__ Radio Dispatcher I SR-171 BU�3 $3 0410 04/30/11 No request received---- County funded
372 Police Lieutenant State funded
373 Police Lieutenant PO-13,BU-12 $5,323,00 01/23/11 Not r
327 Police Officer I PO-07,SU-12 $4,188.00 09126/10 Not r
436 Police Officer PO-07,BU-1 11
437 Police Offic PO-07,BU-12 $4, ounty funded onirts
10/01/10 -,quest received County funded
Page 2 of 6
(�
T�
V�
."
Vacant Positions June 30,2011
Department Pos. No, Classification Title Salary range Monthly Pay Effective Date Recruitment Status Fundin-9-Source
Police(Cont) 450 Detective PO-11,BU-12 $4,904.00 09126/10 Not recruitin2;no request received County funded
457 Police Sergeant PO-1 1,BU-1 2 $4,904.00 09126/10 Not recruiting;no request received County funded
470 Police Sergeant PO-I 1,BU.1 2 $4,9000 09126/10 Not recruiting;no requ!st received County funded
-T-475 Clerk SR-08,BU-3 $2,139.00 01128/11 Not recruiting;no request received Rev.- .9 fund
T477 -Police Services Officer PO-05,BU`12 $4,028.00 04/27/10 Pending results of selection process Couniy fi nded
T�4R-Police Services Officer PO-05,BU12 $4,028.00 05/01/00 Pending results of selection process County funded
T-481 Police Services Officer PO:05,BU12 $4,028M 05101100 Pending results of selection process Counly funded
T-4-82 Police Services Officer PO-05,BU12 $4,028M -05/01100 Pending results of selection process County funded
T-483 Police Services Officer PO-05,BU12 $4,028.00 05/01/00 Pending results of selection process County funded
503 Police Officer I PO-07,BU-12 $4,188.00 09/26/10 Not recruiting;no request received County funded
�18 Background Investigator Contract Contract 12/27110 DeRartment handles internally County funded
5215 Police Officer I PO-07,BU-12 $4,188,00 09126/10 Not recruitln2;no request received Coun�funded
529 Police Officer I PC-07,BU-12 $4,188.00 12/30110 Not recruiting;no request received County funded
535 Police Ueutenant PO.13-BU-12 $5,323.00 01/23/11-Not recruitinp;no request received County funded
536 Radio Dispatcher I SR-14,BU.3 $2,702.00 12/24110 Not recrultl%no request received Cou!:]�Lunded
53iF Police Serg ant PO-1 1,BU-I 2 $4,904Z 09/26/10 Not recruitl%no request received Coun�funded,
�-42 Police Officer I PO-07,BU-12 $4,188,00 09126/10 Not )st received 2�junded
T-565 Radio Diieatcher I SR-14,BU-3 $2,702,00 03/23111 Not recruiting;no request received State funded
568 Police Officer I PO-07,BU-12 $4,188.00 09/26/10 NoFrecruiting;no request received 11 un�funded
569 Police Officer I PO-07,BU-12 $4,188Z 09/26110 Not recruiting;no request received COU2�funded
�7-1 Police Officer I PO-07,BU-12 $4,188.00 12/27/2010 Not recruiting;no request received County funded
T78 Police Officer I PO-07,BU-1 2 $4,188.00 09/26/10 -Not recruiting;no request received County funded
T7-9 Detective PO-11,BU-12 $4,904.00 09/26110 Not recruting,no request received County funded
1305 School Crossing Guard �R-5,-BU-3 $10.95/hour 03/13/09_No request received County funded;How-
T3-07 -Sch-o-ol C ssing Guard SR-5,BU-3 $10,95/hour 04/01/07 No request received County funded;Hourly
�-309 School Crossing Guard SR.5,BU-3 $10.95/hour 04/01/07 No request received
County funded;Hourly
1310 School Crossing Guard SR-5,BU-3 $10.95/hour 04101/08 No request received County funded�Hourly
�31 1 School Crossing Guard SR-5,BU-3 $10.951hour 02/11/11 No request received County funded;Hourly
1314 School Crossing Guard SR-5,BU-3 $10,95/hour 12116110 No request received County funded;Hourly
-�chool Crossing Guard SR-5,BU-3 $10.95/hour .04/01/08 No request received
Coun funded;Hourly
1316 School Crossing Guard SR-5,BU-3 $10.95/hour 04/01/08 No request received County funded;Hourly
Pros Attny. E-88 Deputy Prosecuting Attomey Ordinance $105,660.00* 03131/11 Department handles internalix County funded
T-2823 I Law Office Assistant I �ontract , I I s internally --�County funded
Page 3ofb
-
. -
`
Vacant Positions June 30,2011
a art ent Pos No Classification Title Salary range Monthly Pay Effectiva I)ate Recruitment Status Funding Source--'7
Pros,Attny, (cont) 9C �:�Ca9, lor Contract Contract 02125111 Depadment handles internally d
91, 7 Sp Contract Contract 03/31/11 Department handles interna1ly State/Federal fun
102------ P Contract Contract 01/29/11 k—Al' Ttate—funded
2 Su EM-05 $5,950.00 09/16/10 'qut recMing:no request received Co nty dollar funded
S-10,BU-1 $4,080.00 06/08/09 Not rprniifinn nn r quest received County dollar funded
841 Refuse Co- BC-05,BU-1 $3,080M 12/31/10 On hrlld pending d;-;-TrooTN-zTatIc—n — County funded
T4 T Fiell erations C�erk S R,10,BU-3 $2,313.00 06/30/11 Not rrrniitinry nn rp�t,p�t—received County funded
853 TraFf)75ign—Painter BC-09,BU-1
$3,712,OG 06/01/09 Not recriflfinry �re—ast receivej— County dollar funded
860 Eclullment Operator m BC-10'OU-1 $3,85100 07101/10 Department handles internally County funded
672 Baseyard Attendant BC-05'BU-1 $3,080,00 7/01110 On hnld,ponriinn division reorganization
897 Automotive—Services—Sup Countv,fundp'd
T3—24 --Baseyard Attendant ervisor SR-24,BU-13 $4,276,00 1 1/291Q8 Not rpnmitinq-—request received County dollar funded
BC-05'BU-1 $308000 06/20/11 Not mrnilfi——
939 Laborer H BC-02,BU-1 $2,769M 03/01/11 Department handles Internally County funded
955 LaborprW WS-03,B -1 $3,04HO 01/01/09 Not recruiting;no request received Coun�dollar funded
1022 Laborpr 11 --- BC-02,BU-1 $2,769.00 03/28/11 Department handles interna4y County funded
1063 Rasayard Atendant --BC-05,SU-1 $3,080,00 07/02/10
Constr Equip alder
Construction Inspector 11 SR-19,BU-3 $3,290,00 12/31/10
1436 Supervising BtAding Plans Examiner SR-23,SU-4 $3,848,00 07/01110
1438 Construction Inspector i SR-16,BU-3 $2,922.00 04/16/09 elpartment is reviewing position County dollar funded
T- 42 Uvil Engineer—I SR-18,SU-13 —$3,249,00 04/16/11 ligible list established 05/11;no request received Bldg,Revolvirig fun
1479 Sewer Maintenance Repairer I
15311 BC-10,SU-1 $3,853,00 10/06110 Depart County funded
1532 1 0 06/01/10 Names referred 05/04/1'1 County fundec7-----�
187 12/31/08 Not recruiting;n request receNed County dollar funded
0 12/05/08 Not recruiting;n request rece�ved
1918 epaire
1927 Operator IV $4 147,00 05/27/11
$4,147,00 03/20/11
SR- 1, 1 j-.1 An" no request received B Idg,Revolving fund
SR-100,BU-3 LNot rnjiting�no request received Proiect dollar funded
Page 4 of 6
—Ri
Vacant Positions June 30,2011
)epartmLnt —Pas. No. Classification rltle Salary range Monthly Pay Effective Date Recrultm en t Status Funding Source
lubllc Works(cont) T-1981 Building Permit Cterk SR-13,BU-3 $2,601,00 12/27110 Not recruiting;no request received Bldg,Revolving fund
—T-1984 Assistant Building Inspector SR-16,BU-3 $2,922,00 03/27/07 Not recruiting;no request received Bldg.Revolving fund
1_996 Landfill Operator IV BC-12,BU-1 $4,147,00 05/03/11 Not recruiting;no request received County funded
9047 Project Manager Con-tract Contract 01/01/10 Department handles Project funded,
9052 Civil Engineer 11 Contract $3,511,00 07101/09 Not recruiting;no request received Pro ect funded
ransportation —930 Bus Driver BC•07,BU-1 $3,331.00 05/31/11 Not recruiting;agency handles County funded
_93_26 Clerk Dispatcher I SR-12,BU-3 $2,503,00 05/28/11 Not recruiting;agency handles Federally funded
_
9424 Bus Driver(Substitute) BC O7,BU-11 $3,331.00 06129/11 Not recruiting;agency gency handles County/Federally funded
10396 Clerk Dispatcher I SR-12,BU-3 $2,503.00 03/31/11 Not recruiting;a2ency handles County funded
'later 2347 Chief of Water Operations EM-5 $5,980,00 09/01107 Names referred 03/10/11 Water DeRartment funds
2350 Civil Engineer VII EM-7 $6,592,00 12121105 On continuous recruitment,no request received Water Department funds
2354 Secretary SR.1 6,BU 3 $2,922.00 12/11110 Department handling internally Water.PeRartment funds
2356 Accountant Ill SR-22,BU-13 $3,798.00 02101111 Department handled internally Water Department funds
2418 Pipefifter BC-09'BU-11 $3,712.00 04/18/11 Not recruiting;no request received Water Department funds
2430 Civil Engineer VI EM-5 $5,980.00 06101/10 On continuous recruitment,no request received Water Department funds
2441 Welder BC-10,BU-1 $3,853.00 06/16/05 Not recruiting;no request received Water Department funds
2443 Pipefifter BC-09,BU-1 $3,712.00 04/18111 Not recruiting;no request received Water Department funds
24_54 Pipefitter Helper BC-05,BU-1 $3,080,00 04116111 Eligible list established 06/28111 Water Department funds
2457 Plant Electrician BC-11,BU1 $3,994,00 01107/05 Not redNting;no request received Water DeRartment funds
2458 Civil Engineer 11 SR-22,BU-13 $3,798.00 12116/110 On continuous recruitment Water Department funds
2470 Civil Engineer VI EM-05 $5,980,00 12/01/10 On continuous recruitment Water Department funds
2481 Lead Pipefifter WS-9,BU-1 $3,939.00 12/31/09 Department handled Internally Water Department funds
2486 Water Service Supervisor 11 SR-14,BU-3 $2,702,00 07/26108 Not recruiting;no request received Water Department funds
2489 Computer Systems Support Technician I SR-13,BU-3 $2,601,00 12/21/09 Not recruiting;no request received Water Department funds —
2491 Water Field Operations Superintendent SR•24.BU-4 $4,004.00 04/08110 Not recruiting;no request received Water Department funds —
2493 Commission Support Clerk SR-13,BU3 $2,601,00 12/06/10 Position being reviewed Water Department funds
2494 Civil Engineer If SR-20,BU-13 $3,511.00 04111/11 Names referred 05/31/11 Water Department funds
19105 Engineering Program Assistant ISR-15,8U-3 Contract l 03/18111 Not recruiting;no request received Water Department funds
Annual Salary
Urnited Term position
rR Temporary
Reallocation
JC U,'j."sjf'ed
Not in compensation plan)
Page 5 of 6
Vacant Positions June 30,2011
Delta tmertt Pos. No, Class ftcr(ion Title Salary range ltonChly Pay Effective Date Recruitment Status o Funding S
:TL=Irl �-Ulce ..............
Continuous Recruitment: Recruitment is ongoing until needs are met. There is no deadline to submit an application. Applications are reviewed as they come in,
Exempt AppolntrneM --,Flosltion is exempt from Civil Service Recruitment procedures,-Departments may recruit and appoint themselves,
Internal Recruitment: Departments administer recruitment based on policy and procedures.
N c request received; Department of Personnel Services has not received a...r I equest to recruit or refer names.
ode,,e 6 of 6
NEW HIRES - APRIL - JUNE, 2011
--------------
DEPARTMENT NAME CLASS TITLE TYPE OF APPOINTMENT PAY DATE OF
HIRE
g2un Clerk Michal Nakashima Clerk 12ist Exemet SR-8 4/1111
Prosecutin2 Attorney Lianne Parongao -Program Assistant Contract Unclassified 4/1111
I Finance Sandra Howatt Real Property Ap2raiser IV Initial Probationaa --S-R�22 4/1/11
1 Prosecut!nQ Attorney Jared Auna De !y Prosecuting Attorney Exempt $60,000 P/a 4/4/11
Police Johnette Chun Police Equipment Maintenance Short Term SR-18 4/5/11
Coordinator
Prosecuting Attorney ,Dorothy Miller Law Office Assistant Contract Unclassified 4/6/11
_Transportation "Lucia Kaui Bus Driver Exempt BC-7 4/17/11
-Transeortation James Prem, Jr, Bus Driver Exempt BC-7 4/18/11
Transportation Roger Sasaki Van Driver Exempt BC-5 4/18/11
V Trans 2ortation Sione Uluk u Bus Driver Exempt BC-7 4/18/11
j Police Matthew Beadle ...-Public Safe Worker I Initial Prabationa!y SR-15 4/18/11
Police Ronald Aceret Public Safety Worker I Initial ProbationaEy
Police Clyde Letreta SR-15 4/18/11
Police -...Arthur Public Safety Worker I Initial Probationaa SR-15 4/18/11
1 11 Public Safe!y Worker I Initial Probationaa SR-15
Police Creighton Tamagawa Public Safe!y Worker I Initial Probationary SR-15--4/18/11
�
0
Publ,ic ic Works Ronald Darville Code Enforcement Officer Initial Probationary SR-26 4/18/11
Liquor- Jonathan Hoomanawanui Liquor Control Investigator Initial Probationary SR-14
Trainee
Elderly Affairs Azi Turturici Accountant III Contract SR-22 5/19/11
Public Works Harlan Nakae Janitor H Initial Probationary BC-2 5/23/11
Parks & Recreation Keoni Blake Park Caretaker I Initial Probationary BC-2 5/23/11
Pub lic Works -7-rina Horner Senior Account Clerk Initial Probationary SR-13 5/31/11
1
NEW HIRES - APRIL - TUNE, 2011
NAME CLASS TITLE TYPE OF APPOINTMENT PAY DATE OF
HIRE
Joshua Oxentine Hcus�-- S
ecialist I Contract
Public Works---- Jahn Harder— Waste Diversion Program Short Term Hourly
Advisor
TrL,�sjLo taticn Lei(ani Su
Clerk
D� a cl e r . Exem ----
SR-12 6/2/11 Count Clerk Mor an Lo e Secretarial Exam t
Unclassified 6/9/11
poEice Alan Mindoro School Crosskn Guard Initial Probationary SR-5 6/14/11
Pros AttorneL Law Intern
Matthew Yoshida Short Term
fw� --5�
a id
11 U_quor
Liquor Control Investi-ator I Initial Probation SR-16
1 6/16/11
Pafc
Recreation Lawrence Stem Park Security Officer I -Fnitiai—Probationary SR-1 3
Ma or Bunao
I E�-- SPF SIG Administrative Clerk
�_ - -
Exe met Unclassified
6116111 fubk WOfks old A Plans Examiner
Initial Probationa SR-19 /26/11
2
REALLOCATIONS FROM APRIL-JUNE 2011
(Due to chances in duties and responsibilities}
DEPARTMENT NAME FROM: CLASS TITLE/PAY TO: CLASS TITLE/PAY EFFECTIVE DATE
Public Works Maria A—lmeida Departmental Contracts Specialist, SR-K— Departmental Contracts Officer, SR--24 311/10(action take I n on
4/20/11)
County Clerk Barbara Wong Election Clerk 11, SR-10 Senior Election Clerk, SR-12 111111 (action taken on
50/11)
Public Works Patrick Shimamoto District Road Overseer 11, F111-10 Roads Project Coordinator, SR-22 2/1/26/11 (action taken
Pros Attorney Patricia Pablo Legal Clerk 11, SR-12 -2��
Legal Clerk III, SR-14 2/22111 (action taken
on
Coun Clerk Darre Ilyne Simao Council Services Assistant 1, SR-17 Council Services Assistant 11, SR-20 4/1/11,4129111)
Fire ,Christopher Young _Fire Fi2hter Trainee, SR-15 Fire.Fighter 1, SR-17 4/1/11
Fire Justin Shinn —.,.Fire Fighter Trainee, SR-1 5 .,.Fire Fighter 1, §R-17 411111
Fire Irah Nishi Fire,Fighter Trainee, SR-15 Eire Fi2hter 1, SR-17 4/1111
Fire Russell Fujimoto Fire Flqhter Trainee, SR-15
Fire Fire Fighter 1, SR-17 4/1/11
Fire Jeremy Albano fire Fighter Trainee, SR-15 Fire Fighter 1, SR-17 4/1/11
Ryan Na2aoka Fire Fi2hter Trainee, SR-15 Fire Fighter I SR-17
Fire .1. 4/1/11
Mathew Ballard Fire Fi2hter Trainee, SR-15 Fire Fi ghter 1, SR-17 4/1/11
Fire Jacob Mine! Fire,Fighter Trainee, SR-15 Fire Fighter 1, SR-17
4/1/11
Parks & Recreation Brandon Jacinto SwimmIn2 Instructor, SR-10 Pool Guard, SR-13 4/16/11
Fire -Tyler Hale -Water Safety Officer 1, SR-15 Water Safe -Officer 11, SR-17 --5/1/11
Fire Marvin Lum Water Safety Officer 1, SR-15 Water Safe!y Officer 11, SR-17 5/1/11
Fire Tvqr)n R-a—welu Water Safe!y Officer 1, SR-15
C A Water Safely Officer IL SR-17 5/1111
Coun Affnrma,, Pamela Cox Su Le a( Clerk, SR-18
t ttorne Law Office Manager 11, SR-20 6/16/11
Count A ftt n r n ey Allison Hiranaka Le al Clerk 111, SR-14 Legal Clerk IV, SR-16 6/16111
or
County ou n Attorney ounty Attorney Barbara Legal Clerk III, SR-14 Supervising Legal Clerk, SR-18
_:_ _
_Montemayor
*Temporary Reallocation
�
~ '
PROMOTIONS FROM APRIL JUNE, 2011
(Due tO vacancies)
FROM: CI�T�SS TITLE/PAY TO: CLASS TITLE/PAY E F`7 FIVE IDATI,
-Mark Begle FEC"r E,
Police Lieutenant, PO-13 Police InSpeCtor, EM-7
La
avid MaSUda 3/28M
& Recreation Pa
Pf
son Oshlro L 4/26/1,
Supervisor, Fi-12
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,
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7&��&o�thKkrQ Street
~ �� ��'f Union� � u� H�nmlu� Hawaii 96826-2097
���������� "�re��Y, ��non ������� '
~� Telephone: (808)941,0556
Fc�: (808)94&0019
VVebo�e: xvvv*vhcm�/oqg
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Email:In#oChcu.org
_
January O. 2O12
kn
Cost Control Commission
Attn: K8e[C8deSYOVn � �� ~��� 6
Office `
L�- ----�
`'...°~ ". ""~..~ .... .~.....~~~..~
4444 Rice Street, Suite 150 / BOARDS COMMISSIONS 1,
Uhue. H| 86768 ^-------------- ' -------�
Dear Members of the Commission:
Re: Preliminary Report of the Real Property Tax Advisory Commission
| understand you will be having o presentation on the above-referenced subject at your January
9mefting. The credit unions of Hawaii strongly oppose the recommendations of the Real
Property Tax Advisory Commission (hereinafter the "Commission")to repeal or reduce credit
unions' real property tax exemption.
The Commission Report Said
'^(Fl)e@| property taxpayers are being asked to subsidize the benefits credit unions afford their
members such as paying higher interest rates on deposits and extending lower interest rates on
it [sio] loans tOmembers. Thus, the Commission questions the validity of this exemption and
recommends that the Council consider complete repeal ofthe exemption."
Our Response
Hawaii credit unions were formed asnonprofit financial cooperatives pursuant tV the Federal
Credit Union Act of1SO4. That law was enacted near the end of the Great Depression for the
purpose of promoting thrift among members and creating a source of credit for provident or
productive purposes. Now, near the end of the Great Recession, such affordable financial
services are needed more than ever, especially for people of modest means,
In a speech delivered to a credit union conference in February 2004, then Secretary of the
Treasury John 8novv, put it best. He said, "You're in the business todogood, as well as to do
business. That's clear from your motto: 'Not for profit, not for charity, but for service.' And let me
say to you that | understand you are for service and not for profit, which is the fundamental
reason why this talk of taxation of your industry and what you do is something we (the George
VV, Bush administration) oppose. | think | said here last year that you a!xv8yS get less, it's a
truism | think ineconomics, you always get less of anything you tax, [Emphasis added.] VVeU.
vve don't want b]get less Of what you do."
Unlike for-profit financial institutions that are able to access capital from external sources, such
as issuing additional stock or acquiring subordinated debt, a credit union can strengthen its
capital only by retention of net income, Capital iS needed tQ support growth and aG8 reserve for
contingencies. Consequently, aS observed by Secretary Snow, taxation will diminish the growth
Qf credit unions and their ability tO serve more members, Timing |s also @n issue, as net income
of credit unions has been severely impacted by the global financial crisis,
1
� ^
Credit unions' real property tax exemptions should not b8 considered a subsidy ko benefit afew
individuals. Instead, the exemptions are a means h] contribute bJ the financial wellness of
nearly 811,000 credit union members in Hawaii, similar to the way tax-exempt nonprofit
healthcare agencies contribute tO the medical wellness ofcitizens,
The Commission Report Said
"The Commission notes that on one hand those that have a limited field of membership only
serve that defined field of membership and not the community otlarge. Conversely, the
Commission notes that for those credit unions that have a field of membership that is
community based, one has to question whether or not those institutions maintain a competitive
advantage over traditional financial institutions. Should the Council determine that this repeal
may be politically unacceptable, consideration should be given to applying an assessment ratio
aB recommended above for other nonprofit organizations, albeit at a higher ratio than that
granted toSection 501(c)(3) organizations.
Our Response
All credit unions have limited fields of membership, a8 required bythe aforementioned Federal
Credit Union Act. Fields of membership can be occupation-based (such as employees ofthe
state or county government), association-based (such as members of a labor union), or
community-based (living or working within a well-defined local community). Regardless 0fthe
field of membership type Orasset size, all credit unions are deserving ofthe exemption from real
property taxes because Vf their structure, purpose, and public benefit. Furthermore, community-
based credit unions do not maintain a competitive advantage over what the Commission labels
"traditional" financial institutions.
As to structure, credit unions are nonprofit financial cooperatives that are owned and operated
by members. Unlike for-profit corporations where financial benefits accrue too relatively small
group of private inveGtor-stVckho|ders. financial benefits Qf credit unions accrue tV all owner-
members. Unlike for-profit corporations where voting power is greater for those owning more
stock, credit unions are democratically controlled, with each member having one vote, without
regard tothe amount ondeposit. Additionally, unlike for-profit corporations, directors are unpaid
volunteers who are elected bv fellow members ofthe credit union without the use 0fproxies.
As to purpose, credit unions fulfill the statutory purpose of promoting thrift among members and
creating source of credit for provident or productive purposes. Members come from all walks
of life, as evidenced by the vast membership of Hawaii credit unions mentioned earlier. With
credit union membership penetration rate of approximately OO percent of the state's resident
popu|8don. Hawaii has one Ofthe highest penetration rates in the nation. That would not have
been possible if the credit unions 0fHawaii were not fulfilling their purpose.
AGtD public benefit, credit unions are an alternative provider ofaffordable financial services,
Especially in this time of unprecedented uncertainty—where other financial service providers
have lowered deposit interest rates tOalmost zero, tightened loan underwriting standards, and
raised fees—credit unions have been @ welcome beacon ofhope. The effect of credit unions in
the marketplace is not limited only to credit union rnernher@ but flows to customers of banks as
well, since banks have to consider credit unions' pricing when setting their rates and fees,
Aato community-based credit unions maintaining acompetitive advantage over^tradbiona|"
financial institutions, credit unions are nonprofit cooperatives owned by members whereas
banks are for-profit corporations owned by private stockholders, Furthermore, community credit
unions must serve 8 limited local community and cannot serve wide geographic expanses as
banks can, the range ofproducts and services credit unions are permitted tV offer iSfar
2
^ �
narrower than for the range ofproducts and services banks are permitted to offer, access to
capital i8 far more limited for credit unions than for banks, credit unions cannot compensate
directors whereas banks can, and the list goes on and on. Hawaii's 83 credit unions collectively
had $9.3 billion as of September 30. 2011, This pales in comparison to Hawaii's six cnnnnne,Cia|
banks, two savings banks, and one depository financial services loan company, which
collectively had $4O.0 billion in assets aSof the same date. When institutions' assets are
compared individually, the size difference between credit unions and ^traditiono['financial
institutions becomes even more pronounced, thereby dispelling the notion ofcompetitive
advantage.
Conclusion
Credit unions should not be treated like for-profit financial institutions because they are
inherently different in StruCtVv8, purpOSe, and public benefit. Justification for the credit unions'
real property tax exemption has remained unchanged over the years. Therefore, we strongly
oppose repealing or reducing the real property tax exemption of credit unions.
Respectfully,
(Z ;`�
Dennis N. Tanirnoto
President
3
KEKAHA FEDERAL CREDIT UNION Phone (808) 337-1433
P.O. BOX 609 FAX (808)337-9591
KEKAHA, KAUAI, HAWAII 96752
®r"
Januan, 6, 2012
Cost Control Commission
4444 Rice St, Suite 150
Lihae, HI 96766
Honorable Members of the Kauai Cost Control Commission:
My name is Scot Tsuchiyama and I am the Manager / Treasurer of Kekaha Federal Credit
Union. I am submitting testimony on CCC 2011-08 (review and discussion of the
county's real property tax exemption and rate setting procedures).
Taxation and the exemption from paying taxes are powerful tools in the government tool
paying
box to influence economic behavior under its purview. While the free market is the most
efficient method of allocating resources, it does not distinguish bet-vveen good and evil or
rierht from wrong. Government can influence the free market by utilizing regulation and
regulation
in an effort to cohesively attain some humanity to the market place. There are
some things or activities that are good for you but a value cannot be attributed to that
activity by the free market i.e. clean air, open spaces, parks, or donations to charity.
These things that have intrinsic value and seem to defy the free market are what I call a
public good. (Definition of public good- An item whose consumption is not decided by
the individual consumer but by the society as a whole, and which is financed by
taxation.)
I believe that the County of Kauai should support credit unions because that is a public
good. Credit unions were given special status by Congress in 19314 because of the first
financial crisis that caused the great depression. There was a lack of trust in the financial
system and Congress decided on a grass roots approach to bringing people back to the
Z71 __r bringing
financial system. Credit unions kept many communities going during the great
depression. In the last financial crisis, credit unions did not take government (TARP)
money to ball themselves out. Because credit unions are member-owned cooperatives,
they did not see a sudden runoff of deposits and faced no liquidity crisis. Besides being
grass roots organizations that defy market forces, credit unions also act as a check to
other market forces. Credit unions serve the public good as a foil to other for-profit
financial service providers. This can be seen in the recent Bank Transfer Day on
Facebook. People switched to credit unions when Bank of America imposed debit card
fees. Bank of America promptly rescinded the debit card fees.
Tax policy is a tool to advance public policy. I think all public policy recoornizes there
are thinQs or senlees that have an 'Intrinsic value and contribute toward public good. I
think credit unions fall into the category of a public good and thus should get full
government support. The goven-Lmental support we ask for is that our real property tax
exempt status be kept status quo.
Thank you for your time. If you have questions for me, you can call me at 337-1433.
/Tours t
t su ivairia
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Manaa /Treas er