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HomeMy WebLinkAbout061812_CCC Minutes_APPROVED1m (tt) COUNTY OF KAUAI Minutes of Meeting OPEN SESSION Board/Committee: COST CONTROL COMMISSION Meeting Date I June 18, 2012 Location Mo'ikeha Building—Liquor Conference Room 3 Start of Meeting: 1:36 p.m. End of Meeting: 2:35 p.m. Present Chair Dirk Apao; Vice-Chair Lawrence Chaffin Jr. ; Members: Arryl Kaneshiro, Sandi Sterker, and Glen Takenouchi Also Deputy County Attorney Mona Clark; Boards & Commissions Office Staff: Support Clerk Mercedes Youn; Administrator Paula Morikami; Administrative Aide Teresa Tamura; Human Resources Taskforce Members: Janine Rapozo and John Isobe; Deputy Finance Director Sally Motta; and Real Property Appraisal Officer Steven Hunt. Excused Commissioner Laurie Yoshida Absent SUBJECT DISCUSSION ACTION Call To Order Chair Apao called the meeting to order at 1:36 p.m. Approval of Regular Open Session Minutes of May 14, 2012 Minutes Mr. Chaffin requested that a correction be made on page eleven (11) second paragraph to reflect that Ms. Sterker meant that the property is uninhabitable instead of inhabitable. Ms. Sterker moved to approve the minutes as With no further discussion, Chair Apao called for the motion. amended. Mr. Takenouchi seconded the motion. Motion carried 5:0 Communications CCC 2012-08 Communication dated 03/13/12 from Chair Dirk Apao and Commission Members, to Janine Rapozo Human Resources Taskforce, requesting a representative from the taskforce be present at the April 9, 2012 meeting to provide an update on the progress_ generated by the taskforce. (Deferred on 04/09/12) Mr. Chaffin moved to receive the Chair Apao called for the motion to receive item CCC 2012-08. communication. Mr. Takenouchi seconded the motion. Motion carried 5:0 Cost Control Commission Regular Open Session June 18, 2012 Page 2 SUBJECT DISCUSSION ACTION (a) Communication dated 06/04/12 from Mayor Bernard P. Carvalho Jr., to Chair Dirk Apao and Commission Members, regarding_ Human Resources Taskforce Report &Addendum Recommendations. Chair Apao called for the motion to receive item CCC 2012-08 (a). Ms. Sterker moved to receive the communication. Mr. Chaffin seconded the motion. Motion carried 5:0 Mr. John Isobe a member of the Human Resources Taskforce, along with Janine Rapozo, Risk Management Administrator was present to provide the Commission with an update relating to the Human Resources Taskforce Report on the Findings and Recommendations dated May 2012. Ms. Sterker thanked the Taskforce for providing the Commission with a report on the findings and recommendations. She asked whether the people that are being transferred to the new Human Resources Department are the same people but moving into a different capacity. Mr. Isobe explained, the personnel that are currently in the Department of Personnel would remain in the department and that the personnel from the other departments would be transferred over into the newly formed Human Resources Department including the positions that are currently vacant that is now in the process of being filled. Ms. Sterker asked whether the people who are currently in the Personnel Department are qualified Human Resources personnel. Mr. Isobe stated that from the perspective of them performing their current responsibilities, he felt that they were all qualified to carry forward their Cost Control Commission Regular Open Session June 18, 2012 Page 3 SUBJECT DISCUSSION ACTION current position as well as focus on other specific areas. Ms. Sterker asked will the new personnel who are being transferred have to receive additional training in order for them to be able to perform their new duties and responsibilities. Ms. Rapozo explained that the Taskforce had looked at all of the positions that are currently in the department as well as those who would be transferred from the other departments. The Taskforce felt that they all met the minimum qualifications and would be recommending additional training moving forward. Chair Apao asked the Taskforce to explain Attachment(H)that relates to the Restructured Department of Personnel Services Comparison of All Costs specifically the Net Effect of Restructuring. Ms. Rapozo explained that although the Personnel Services annual budget had doubled, all of the funding has already been appropriated in the other departments. Chair Apao noted that the report shows a savings of$36,377. Mr. Chaffin voiced his concerns on justifying the doubling in cost for the restructuring. Ms. Sterker stated that the reason for the increase is due to the transferring of personnel from the other departments. Mr. Chaffin again noted that the overall budget slated for fiscal year 2013 has doubled from what it was in 2012. Ms. Rapozo explained that although the cost has doubled, so has the personnel within the department from nine to eighteen positions, noting that Council had moved one of the positions back into the Mayor's office. Cost Control Commission Regular Open Session June 18, 2012 Page 4 SUBJECT DISCUSSION ACTION Mr. Chaffin asked how many out of the seventeen(17)positions would come from existing departments. Ms. Rapozo replied that all seventeen (17)positions. Mr. Chaffin expressed his concerns that in the original budget for FY 2012 showed$1,202, 373, adding that the total to FY 2013 amounts to $2,410, 999 which is a difference of million dollars. Ms. Rapozo explained the already appropriated funds were shifted from the other departments into the Department of Personnel Services. Ms. Sterker asked for the definitions for following the abbreviations that were indicated in the report: ERS—Employee Retirement System EAP- Employee Assistance Program TDI - Temporary Disability Insurance FMLA—Family Medical Leave Act COBRA—Consolidated Omnibus Reconciliation Act FLSA—Fair Labor Standards Act SAP— Substance Abuse Program Mr. Chaffin asked what the definition of a private secretary is. Ms. Rapozo explained that a private secretary is an exempt position which also qualifies for retirement. The classification term is used by the civil service system. She further explained that private secretary duties are confidential in nature and serves at the pleasure of the Director. Mr. Chaffin asked whether any individual in the County can be randomly picked and be required to do substance abuse testing. In his experience, it would be required for all employees across the board and not just for certain employees. Cost Control Commission Regular Open Session June 18, 2012 Page 5 SUBJECT DISCUSSION ACTION Ms. Rapozo explained that the drug and alcohol testing is governed by each collective bargaining agreement. For example, a person with a commercial driver license whose job is to operate a large vehicle would be required by federal law to participate in a random drug and alcohol testing program. She noted that if there is reasonable suspicion by a particular department, as well as post accident testing, there are specific requirements under the federal law. Ms. Rapozo stated that certain classifications of employees that are under HGEA Union (Hawaii Government Employee Association), for example lifeguards and vehicle drivers are subject to random drug and alcohol testing while other positions such as staff member in a department are not. Ms. Rapozo stated that employees under the UPW Union(United Public Workers) are subject to a drug and alcohol testing program, which was recently adopted. Mr. Chaffin asked what does an Equipment Operator Trainer do and whether that position is considered full-time. Ms. Rapozo explained that the position is a full-time position which is currently housed in the Department of Public Works. Ms. Rapozo further explained that the Equipment Operator Trainer does all of the training for the public works employees who operate heavy equipment. Ms. Sterker reiterated that the ADA (American Disabilities Act) Coordinator would not be part of the newly formed Human Resources Department. Ms. Rapozo stated that the position would remain in the Mayor's office. Cost Control Commission Regular Open Session June 18, 2012 Page 6 SUBJECT DISCUSSION ACTION Ms. Sterker asked whether all of the 1200 civil service positions are under collective bargaining. Ms. Rapozo replied that not all positions are under collective bargaining and guessed that 75% is under civil service. Chair Apao asked whether the County Council has been involved in the process from the beginning. He noted that the report does not indicate that and asked whether there was any dialogue between the Taskforce and the County Council. Mr. Isobe explained that the Taskforce has provided the County Council with its findings and recommendations. In addition, the Taskforce have answered Council's questions during the budget process. He further explained that the Taskforce have kept in contact with the Council's Staff representative although they were not a part of the Taskforce. Ms. Sterker asked to elaborate more on the payroll function specifically, the technology upgrades that are being considered by the Department of Finance. Ms. Rapozo stated that after review of the payroll function, the Taskforce found that there were definitively some Human Resources functions within it and decisions had to be made on whether to transfer the payroll function into the Department of Personnel. However, at this time the Taskforce felt that it would be too large of an undertaking and decided that they would re-visit that issue in the near future. Chair Apao questioned whether the funds appropriated for the trainings in 2012 would be transferred over to the 2013 budget since the positions are being transferred into the new Human Resources Department. Ms. Rapozo replied yes, and noted that the funds have increased from $70,000 to $72,000. She also indicated that when the County Council moved the ADA position back into the Mayor's office they also allocated$10,000 back into the Mayor's budget for the ADA training budget. Cost Control Commission Regular Open Session June 18, 2012 Page 7 SUBJECT DISCUSSION ACTION The Commission showed their appreciation to the Taskforce for their exceptional work. Mr. Isobe also expressed on behalf of the Taskforce his appreciation to the Cost Control Commission for being an integral part of the process from the beginning which began as a recommendation. CCC 2012-09 Communication dated 05/01/12 from Council Chair Jay Furfaro to Chair Dirk Apao and Commission Members, concerns re ag riling the reorganization of the Department of Personnel Services to a Human Resources Department. In response to Council Chair Furfaro's concerns regarding the Reorganization of the Department of Personnel Services to a Human Resources Department, Ms. Sterker felt that no response was necessary and suggested that the Commission keep it as reference/guideline. Mr. Chaffin felt that out of common courtesy, the Commission should respond. Ms. Sterker noted that Chair Furfaro already knew that the Commission had received his communication and felt that no action is required at this time other than to accept the communication. Chair Apao agreed. Chair Apao called for the motion to receive item CCC 2012-09. Ms. Sterker moved to receive the communication. Mr. Chaffin 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. (On-going) Cost Control Commission Regular Open Session June 18, 2012 Page 8 SUBJECT DISCUSSION ACTION (t) Confidential opinion dated 05/14/12 from First Deputy County Attorney Amy Esaki to Chair Dirk Apao and Commission Members, regarding Real Property Tax Division dishonored check fee. Chair Apao called for the motion to waive the Commissions rights to Ms. Sterker moved that the Cost Control confidentiality and allow the opinion to be publicly released. Commission waive its rights to confidentiality and allow for the opinion to be publicly released. Mr. Chaffin seconded the motion. Motion carried 5:0 Ms. Sterker expressed her dismay with the $7.50 dishonored check fee and asked when the fee was first implemented. Ms. Sterker suggested that the Commission consider a recommendation to raise the dishonored check fee for the County. Staff noted that at the last meeting it was discussed that a change would affect all of the departments throughout the County and that the proper procedures must be taken in order to change the service charge fee. Ms. Sterker agreed, and asked whether the change would have to be in a form of an Ordinance or does the public have to vote to approve the increase. Ms. Clark stated that the description is indicated in Section 6-5.1 Service Charge Assessed of the Kauai County Code, which means that the Council would have to change it. Ms. Sterker suggested that the Commission make a request to the Mayor on its recommendation for an increase for the Dishonored Check Fee. Also, that it is drafted in ordinance form for its introduction through him to the County Council. Cost Control Commission Regular Open Session June 18, 2012 Page 9 SUBJECT DISCUSSION ACTION Ms. Sterker felt that the fee should be a flat rate of$30.00. Chair Apao noted that some fees run anywhere from $30.00 to $40.00. Ms. Sterker stated that the State Statue allows for a fee of not more than $30.00. Mr. Chaffin suggested that the language reads as "in conformance with the State Statue, which allows for a fee of not more than $30.00, however should the fee increase, the charges for Dishonored Checks for the County shall follow". Chair Apao asked if anyone knows what the banks are charging. Ms. Sterker stated the banks charges anywhere from $25.00 to $30.00. Chair Apao stated that it would make sense to cover all of the banking costs. Ms. Sterker stated that because the State Statue does not allow a fee of more than $30.00, she suggested the Commission recommend a County wide flat fee of$30.00. Chair Apao asked whether the Commission should do some background research first. Ms. Clark stated that the Commission can recommend for the maximum allowable by State law. Mr. Chaffin agreed. Ms. Sterker moved that the Cost Control Commission forward its recommendation to the Chair Apao called for the motion. Mayor to be drafted in ordinance form to increase the Service Charge fee for dishonored checks to the current $30.00 as the maximum allowable by the State, and that should the maximum allowable by the State increase, the County's fee be adjusted in accordance. Mr. Chaffin seconded the motion. Motion carried 5:0 Cost Control Commission Regular Open Session June 18, 2012 Page 10 SUBJECT DISCUSSION ACTION Staff was instructed to draft the recommendation in ordinance form for review and possible approval at the July 9, 2012 meeting. (u) Communication dated 05/15/12 from Chair Dirk Apao to Director of Finance Wallace Rezentes Jr., request for information regarding the cost approximation for County Assessments. Chair Apao called for the motion to receive item CCC 2011-08 (u) Ms. Sterker moved to receive the communication. Mr. Takenouchi seconded the motion. Motion carried 5:0 (v) Communication dated 06/05/12 from Wallace Rezentes Jr., to Chair Apao, responding to a communication dated 05/15/12 from the Cost Control Commission, request for information regarding minimum tax. Chair Apao called for the motion to receive item CCC 2011-08 (v) Ms. Sterker moved to receive the communication. Mr. Takenouchi seconded the motion. Motion carried 5:0 Deputy Finance Director Sally Motta, along with Real Property Appraisal Officer Steve Hunt,provided additional information to the Commission. Ms. Sterker stated that based on the Mayor's supplemental budget for the Assessment and Collection Department, the average cost to the County to both assess and collect taxes on annual bases including all expenses for both departments' works out to $71.76 per taxable parcel. Mr. Hunt explained that the costs essentially relates to the operating budget and annual operating budget for the Real Property Assessment Office and the Real Property Collections Office. Mr. Hunt included that the costs does not include the support services that his department receives from the County Attorney's Office, Deputy Director of Finance, and any other Cost Control Commission Regular Open Session June 18, 2012 Page 11 SUBJECT DISCUSSION ACTION involvement from the outside; it is strictly budgeted for the assessments and collections. Ms. Sterker noted if it had to go to collections, the costs are not reflected in the information that Mr. Hunt has provided. Mr. Hunt explained that there are two (2) functions that involve the collection process: 1) assessing values; and 2) collecting. However, beyond that there are budgeted amounts that involve going into an auction and title searches which are exclusive. Chair Apao indicated that it is the Commissions intention to make a recommendation to increase the County's real property minimum tax and that the Commission just needs to agree on the amount. Mr. Hunt indicated that just recently, Maui County has increased its real property minimum tax exemption from $150.00 to $250.00 for fiscal year 2013. Oahu still remains the same at$300.00 and Hawaii County has a tiered system and most taxpayers pay the minimum tax exemption of $100.00 however, that amount can go as low as $25.00 based on the property value. Ms. Sterker felt that if the Commission decides to make a recommendation to increase the minimum real property tax exemption from $25.00 to $100.00 that increase would not be out of line. Mr. Chaffin asked if there was a way of relating an ordinance to the maximum of the highest county or whatever is reasonable. Mr. Hunt felt that the rate of$100.00 should(at least)be the lowest for Kauai. When compared to the Big Island, it has more properties and ways to spread it amongst its taxpayers. Mr. Hunt stated that he can understand why the Big Island wants to be the lowest because they also have some the lowest land Cost Control Commission Regular Open Session June 18, 2012 Page 12 SUBJECT DISCUSSION ACTION values and areas that are not really supported because some of the land is located in areas that are hard to reach. Mr. Hunt stated that the reason Kauai is second to the lowest is because its level of service is spread amongst fewer parcels. He felt that Kauai needs to a higher step-up. Chair Apao stated that the Hawaiian Homes has a seven(7) year step-up where they don't pay taxes until after the 7th year. Chair Apao stated that if the Commission decides to increase the minimum tax of$150.00, the Hawaiian Homes exemption would increase to $150.00. Mr. Hunt said yes, he explained that when the taxpayer pulls a permit for a completion of a home that process starts the seven(7) year period. Mr. Hunt asked if the Hawaiian Homes are still paying for trash pick-up services. Mr. Hunt said yes, they are being billed. Mr. Takenouchi asked for the amount of parcels in comparison to Maui that Kauai has. Mr. Hunt said that Kauai has taxable parcels of 34,172. He believes that Maui County has over 11,000 taxable parcels. The Big Island over a 100,000 taxable parcels and Oahu has been primarily condominiumized. Ms. Sterker noted that she would like to make a recommendation to increase the minimum real property tax exemption to $150.00. Mr. Kaneshiro questioned whether there was a way to review the minimum real property tax exemption every few years. Ms. Sterker agreed that it should be reviewed every few years however, it is not for this Commission to decide but either the Mayor or the County Council. Mr. Kaneshiro explained the reason why he inquired is because the County has not reviewed its minimum property tax exemption since the early eighties. Cost Control Commission Regular Open Session June 18, 2012 Page 13 SUBJECT DISCUSSION ACTION He indicated that by reviewing the tax exemption once every few years, the public would not be burdened with the increase if any. Ms. Sterker suggested that the Commission make a recommendation to increase the County's minimum real property tax exemption from $25.00 to $150.00 and that the Commission review the exemption in five (5) years. Mr. Hunt stated that the only concern he had was for the people that are on a fixed income and how it would affect them. Mr. Hunt stated that he did some research to find out when the minimum tax of$25.00 was first implemented he found that it was between years 1975 -1976. If you take what the Social Security Administration COLA (Cost of Living Adjustments)preconceive back then to current, the $25.00 would essentially translate to about $103.00 today. Ms. Sterker asked whether there are places on Kauai that do not have police or fire services available, with the exception of Kalalau valley. Mr. Hunt stated that he believes every call which involves the Fire/Police Department is protected. Mr. Chaffin indicated that he would not be supporting Ms. Sterker's motion, he suggested that the minimum tax be increased to $200.00 rather than$150.00. Chair Apao disagreed with Mr. Chaffin's recommendation to raise the amount to $200.00. He indicated that being that there hasn't been a change for many years, he felt that the $150.00 increase was sufficient at this time. Mr. Chaffin asked whether the Commission can include in the motion for the Commission to review the exemption again in three (3) years instead of Cost Control Commission Regular Open Session June 18, 2012 Page 14 SUBJECT DISCUSSION ACTION five (5) years. The Commission agreed. With no further discussion, Chair Apao called for the motion Ms. Sterker made a motion for a recommendation to increase the County's minimum real property tax exemption from $25.00 to $150.00 and that the Commission reviews the exemption again in three (3) years. Staff was instructed to draft the recommendations in ordinance form for review and approval at the July 9th meeting. Announcements • Next meeting is scheduled for July 9, 2012 at 1:30 p.m. at the Mo'ikeha Building in the Liquor Conference No. 3. • Mr. Takenouchi announced that he would not be attending the July meeting. • A request was made to invite Economic Development Specialist Glenn Sato to a future meeting to provide the Commission with a progress report on the ESCO. Staff acknowledged the request and would contact Mr. Glenn Sato and invite him to the July 9th meeting to update the Commission on the Energy Savings Performance Contract. Adjournment With no further business to discuss, Chair Apao called for the motion to At 2:35 p.m. Mr. Chaffin moved to adjourn the adjourn the meeting. meeting. Ms. Sterker seconded the motion. Motion carried 4:0 Cost Control Commission Regular Open Session June 18, 2012 Page 15 SUBJECT DISCUSSION ACTION Submitted by: Reviewed and Approved by: Mercedes Youn, Staff Support Clerk Dirk Apao, Chair ( ) Approved as circulated(add date of meeting approval). (X) Approved as amended. See minutes of July 09, 2012 meeting.