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HomeMy WebLinkAbout091112_Agenda Packet Dirk Apace Members: Chair Sandi Sterker Arryl Kaneshiro Lawrence Chaffin,Jr. Glen Takenouchi Vice-Chair Laurie Yoshida COUNTY OF KAUA'I COST CONTROL COMMISSION NOTICE OF MEETING AND AGENDA Tuesday, September 11, 2012 1:30 p.m. or shortly thereafter Mo'ikeha Building, Liquor Conference Room 3 4444 Rice Street, Lihue, HI 96766 CALL TO ORDER APPROVAL OF MINUTES Regular Open Session Meeting Minutes of August 13, 2012. BUSINESS CCC 2011-08 Review and discussion of the County's real property tax exemptions and rate setting. (On-going) CCC 2012-13 Discussion on the County's travel policy, budget and expenditures. (Deferred on 081113/12) ANNOUNCEMENTS The next regular meeting: Monday, October 081. 2011, at 1:30 p.m. at the Mo'ikeha Building, Liquor Conference Room 3. NOTICE OF EXECUTIVE SESSION Pursuant to Hawai'i 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 in 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. ADJOURNMENT An Equal Qpportunity Eniplo-ver SPECIAL ASSISTANCE If you need an alternate format or an auxiliary aid to participate, please contact the Beards and Commissions Support Clerk at (808) 241-4920 at least five (5) working days prior to the meeting. 1 PUBLIC COMMENTS and TESTIMO NY Persons wishing to offer comments are encouraged to submit written testimony at least 24-hours prier to the meeting indicating: I. Your name and if applicable, your position title and organization you are representing 2. The agenda item that you are providing comments on; and 3. N Nether 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 to: Cost Control Commission Attn: Mercedes Youn Office Boards and Commissions 4444 Dice Street, Suite 150 Lihue, HI 96766 E-Mail: t oun ka ai, o,, Phone: (808) 241-4920 Fax.: (808) 241-5127 # P agar Cost Control Commission—September I I, 2012 DRAFT B'@ Ash�I 'N PIT104 84. jr4rio COUNTY OF KAUAI Minutes of Meeting OPEN SESSION Board/Conri-nittee- COST CONTROL COMMISSION Meetij wgust 13, 2012 Location Mo'ik ha Building—Liquor Conference Room 3. Start of Meeting: 1:30 pm. _T End of Meeting: 3:00 p.m. Present Vice-Chair Lawrence Chaffin, Members: Arryl Kaneshiro; Saudi Sterker; Glen Takenouchi; and Laurin Yoshida Also present- First Deputy County Attorney Amy Esaki-, Board & Commissions Office Staff- Support Clerk Mercedes Youn; Administrator Paula Morikami; Administrative Aide Teresa'famura; Parks and Recreation Director Lenny Rapozo. Excused Chair Dirk Apao Absent SUBJ ECT DISCUSSION ACTION Call To Order Vice-Chair Chaffin called the meeting to order at Approval of Regular Open Session Minutes of July 9, 2012. Ms. Sterker moved to approve the minutes as Minutes circulated. Ms. Yoshida seconded the motion. Motion carried 5:0 Vice-Chair Chaffin stated that he would take the agenda out of order and take item CCC 2012-12 before item CCC 2011-W CCC 2912-12 Communication dated 7/10/12 thorn Chair Dirk Apaq to Director of Parks and Recreation Lenny R ozo, requesting the presence of schedule of fees and d S. (a) Copy of Chapter 19 of Kauai County Code, relating to public parks and recreation on regulation and control of County parks and recreational areas. Vice-Chair Chaffin called for the motion to receive item CCC 2012-12. Ms. Sterker moved to receive item CCC 2012- 12. Ms. Yoshida seconded the motion. Motion carried 5:0 Cost Control Commission Regular Open Session August 13, 2012 Page 2 SUBJECT T DISC"USSION ACTION Vice Chair C"'haffin inquired whether information was available regarding usage lees and deposits for the County parks and facilities. Mr. Rapoyo replied that he has with him information pertaining to the current fee schedule for usage of pavilions, County parks, stadium, and neighborhood centers, fie explained that his presence today came as a request from the Commission at its last meeting to go over the Kauai County Code Section 19-1,9 Schedule of Dees and Deposits for County Parks. Ms. Sterker inquired when the lights for the County's tennis courts, basketball courts, and ball fields go on. Mr. Rapozo explained to the Commission that the fights for those facilities go on at dusk and is turned off at 10 p.m. and the I ightning for the softball and baseball fields are turned on based a user's permit. fie pointed out that there have been situations where a user has the permit and does not show up to use the park but through modern technology the lights are automatically activated without anyone using the facility. Ms. Sterker asked whether the lights in the ballparks would be temporarily disabled after September 15th when the fledgling season begins. Mr. Rapoyo replied yes and explained that the County would pull each meter to save on the stand-by charge which could range from $135 per meter depending on where the meter is located. He further explained that on December I" the County would then send a letter to KIUC to inform them which meters need be reactivated on December 15"' when the fledgling season ends. Mr. Rapoyo added that the only County facilities that will be allowed to have lights are the neighborhood centers and comfort stations. Ms, Sterker asked how much does it save the County by having the meters removed for that specific time. Mom. Rap yo replied that he does not have Cost Control Commission Regular Open Session August 13, 20 12 Page 3 SUBJECT DISCUSSION AC,flON the information available but noted that the minimum cost per teeter is about S 135 or higher, add that up times three months and multiply that by 20 to 30 meters, Mr. Rapozo explained to the Commission that since 2008 when he first became the Parks Director, the department has taken a proactive approach in reviewing not only its electric bills but also the water bills to see which facility has a higher reading and then take action to fix that problem to reduce cost within the department. Vice-Chair Chaffin asked why the department can't just turn the meters off. Mr, Rapozo explained to the Commission that the meters need to be removed because if you don't the County would incur the stand-by charge. Ms. Yoshida inquired whether KIUC would actually send a person to pull the meters or can they turn it off from their end. Mr. Rapozo stated that lie understands that KIUC sends a service person to pull each meter. Ms. Sterker noted that by having KUIC remove the meters the County's cast would go down significantly, especially for the month of November and half of December when the fledgling season ends on the 15t". Vice-Chair Chaffin voiced his concern that on numerous occasions while driving into Koloa during the early evening hours lie noticed that the lights at the tennis courts and the basketball court are on and often with no one there rising the facility, lie mentioned that in that past, he had suggested if there was a way for the County to put in dial meters instead of having the lights go on automatically. Mr. Rapozo clarified that the lights do not go on automatically because it has to be manually activated by the user by pressing the button. Cost Control Commission Regular (open Session. August 13, 2012 Page 4 SUBJECT DISCUSSION ACTION Mr. Rapozo mentioned that for the Lihue tennis courts, the County has a new user activation system where the user can actually reserve the tennis courts via the internet. With this new system the lights would go on at the designated time and if this proves to be successful it could be used island wide. Mr. Rapozo clarified again that in order for the lights to come on at the other tennis courts the user must manually press a button to turn on the lights and when they're done they would press the button again to turn off the lights. If the user forgets to turn off the lights,the lights would automatically go off at 10 p.m. Mr. Takenouchi asked for Mr. Rapozo's opinion on whether he felt that the County's current schedule of fees and deposits were appropriate. Mr. Rapozo replied that the fees and deposits are long overdue for an increase, not to mention the cost in labor to process the return deposit. He felt that tuning is everything toad the fact that there arc not enough affordable facilities outside of the County for families to hold their parties, right now is not the time to increase the fees given the current economic conditions that most families are faced with. However, on the down side there are users out there who are taking advantage of the County resources at the expense of the taxpayers. But as a whole, he felt that majority of users are very considerate about cleaning up because if they don't the County would keep the deposit and place a red flag in their reservation portfolio that could prevent them from using the County facilities in the future. Mr. Rapozo mentioned that in 2007 there was an attempt to change the deposit fees or.lust fees in general but that attempt did not prevail. Ms. Sterker agreed and felt that there are a lot of people in the community who cannot afford to pay for an expensive place to hold their family -athei-ii t However, she voiced her concerti that it is costing the County m Cost Control (",7onimission Regular Open Session August 13, 20t2 Page 5 SUBJECT DISCUSSION ACTION a lot of money when people use the County facilities for their own personal use like to charge their cell phones and use their laptop. She mentioned that in the past, she had suggested that the County implement a senior patrol enfiorcei-rent program that would consist of members from the community who would have the authority to enforce park, rules and regulations and give out citations to those who are caught abusing the County's facilities and resources. Mr. Rapozo agreed that there are people who abuse the County's resources. lie felt that it would be a challenge for the County to implement such a prograt-Ti because that type of abuse happens all over the island and not Just in the pavilions, Ms. Sterker inquired whether anything could be done to increase the community's participation with the beach clean Lips, Mr. Rapozo replied that the County has always welcomed community participation and is willing to work with all service group (s) or organizations in keeping the island parks and beaches clean. Ms. Sterker stated that more public awareness is needed and suggested that the County contact the various media entities to get the word out in the community, Mr. Rapozo noted that the County has an Adopt-A-Park program that seems to be working WeIL Ms. Yoshida indicated that Chapter 19, Section 19-1.3 mentions a"County Engineer" and asked whether the entire ordinance is outdated. Ms. Esaki informed the Commission that the County ordinance has been updated up to 2010 and that the County Council is currently working on codifying the County ordinance with the amendments to make it current, Cost Control Commission Regular Open Session Aug-List 13, 2012 Page 6 SUBJECT DISCUSSION ACTION Ms. Sterker inquired about the camping fees for a resident versus a non- resident, Mr. Rapozo replied that there is no charge for a resident and a $5.00 fee for the non-resident. In addition, there is a $25.00 fee to camp at the just completed Lydgate camping site for both residents and non- residents that include a choice of either a],0 x, 10 or a 20 x, 20 camping site. For the larger groups the fee is $75.00 which includes the use of a pavilion that can accommodate a minimum of 20 and up to 200 people. Vice-Chair Chaffin indicated that lie would like to re-visit the fees for the main pavilion at Poipu Beach Park. Mr. Rapozo explained that the fees are based on these criteria's: 1) the type of activity to be engaged by the person or organization; 2) hours for which the permit is desired; and 3) an estimate of the anticipated attendance. Vice-Chair Chaffin voiced his concern that the time and effort expended to process the deposit may not result in a cost effective measure for the County. He felt that the County is not charging enough for large groups. Ms. Stcrker indicated that the County has a new policy where they just take the name of the person or organization rather than asking for a deposit. Mr. Rapozo clarified that policy is not something new but is, in fact, an on- going policy for quite some time now. Ms. Sterker questioned why the County doesn't permit certain types of activity under Type VI at the pavilions. Mr. Rapozo replied that in the County ordinance under Type VI it states that any person or organization who wants to sell goods for a profit will not be pennitted at any County pavilions. Ile explained that type of activity is only permitted at the neighborhood centers and stadiums. Ile further explained that Type III activities allow for non-profit organizations to sell their goods at the stadiums. Cost Control Commission Regular Open Session August 13, 2012 Page 7 SUBJECT DISCUSSION ACTION Ms. Sterker voiced her concern about the non-availability for the other people who wants to camp because of the ones who practically remain stationary at the camp sites, Mr. Rapozo clarified that the public is allowed up to 60 days out of a year to camp and assured Ms. Sterker that there was lots of room for everyone to camp. Ms. Yoshida asked what happens when a person with a permit goes to the campsite and finds out that there is no space available. Mr. Rapozo stated that each camp site has a maxis-nuni capacity which is monitored by staff. When an applicant comes in to apply for a camping permit and it shows that camping site is full, the staff would then infirm the applicant the campsite is at its max. Mr. Rapozo further explained that there have been situations where the books show that the campsite is at its max but when the park rangers do their routine check they find that the campsite is not at its iriax, an(] at the same time they notice that there are quite a few tourists camping. Mr. Rapozo explained,that when that happens, a person found without a permit would be offered to purchase a camping permit on the spot from the park rangers for the duration of their camping period. Mr. Rapozo again felt conitbrtable to say that each campsite would have enough room for everyone who wants to camp. Ms. Sterker asked how many park rangers are there in the Parks Department. Mr. Rapozo replied that there are 5 park rangers whose duties and responsibilities are to enforce the County's parks rules and regulations. Mr. Kaneshiro commented that he agrees with Mr. Rapozo on not wanting to increase the user fees for the County's park facilities. He explained that the County would never break even based on the time and effort it takes to enforce, manage, and process the deposits and that it is more of a service to the C01111111.11lity that the County is offering'. ----------- Cost Control Commission Regular Open Session August 13, 2012 Page 8 SUBJECT DISCUSSION ACTION Ms. Sterker commented that she also is against raising the fees and was more concerned about enforcing the laws to keep people from abusing the County's resources. Mr. Rapozo commented that the Parks and Recreation Department is trying its best in keeping a balance to cushion the loss but at the same time it wants to serve the community. Mr. Rapozo explained that for the most Dart, the people in the community who use the County's facilities have been very good in keeping the facilities clean; these are the people who want to continue to have this resource. CCC 2012-13 Discussion on the County's travel, policy, budget and We!_1W_i_tUrc111_, Vice-Chair Chaffin suggested that the Commission defer this matter for continued discussion in September. He indicated that Chair Apao would Ms. Yoshida moved to defer item CCC 2012-13 like to be present to discuss this item. to the September meeting, Mr. Takenouchi seconded the motion. Motion carried 5:0 Business CCC 2011-08 -Review and discussion of the County's real property tax gxeniliCions and rate setting. On-gain A'J (w) Organization Reference Chart on the various 501 (c) non-profit organizations description and general nature of activities. Ms. Sterker felt that the Commission should have information on which of the various 501 (c) noti-profit organizations have buildings. She indicated that it would help the Commission to know which organizations are receiving fire and police set-vices. Cost Control Commission Regular Open Session Aug-List 13, 2012 Page 9 SUBJECT' DISCUSSION ('11ON Ms. Yoshida questioned whether the Real Property Tax Division could provide infort-nation regarding which of the non-profit organizations that have exemptions and what federal non-profit category would they fall into. She noted that if the Real Property Tax Division cannot provide that information then the Commission would have to manually go through the list and ask each organization whether a building exists. Ms. Sterker requested that the Commission be provided with the names of non-profit organizations and categories that are here on Kauai who are listed under the 501 (c) (3) exemptions. Ms. Esaki indicated that she would make an inquiry with the Real Property fax Division to see whether this type of information is available. Additionally, Ms. Esaki informed the Commission that the County Council is reviewing Bill 2443, which proposes to increase the fee for bad checks to $30. She also mentioncd that during its discussion, the Council had expressed their concerns that the Purpose of the Cost Control Commission is to review personnel costs, real property taxes, travel budgets, contract procedures, review with the aim of eliminating programs and services available or more efficiently supplied by other governments or organizations, eliminate or consolidate overlapping or duplicate programs and services, and scrutinize for reduction any County operation. Ms. Esaki explained that as for setting revenues and fees, the Council felt that it wasn't necessarily within the Cost Control Commissions authority and that the Council would be introducing a Charter amendment to change the title of Cost Control Commission to Revenue and Cost Control Commission however, the proposal has failed in the past. Cost Control Commission Regular Open Session August 13, 2012 Page 10 —_.._.m_ ___.__ SUBJECT DISCUSSION ACTtON Ms. l saki advised the Commission going forward to remain within its purview and responsibilities and when asking for information fron-I the other departments that it is consistent to the Commissions purview. IV1r. Kaneshiro questioned who is in charge of changing fees. Ms. P'saki replied that the Council suggested any changes to the fees be left to the administration, For example, in order for the recommendation to be within the Commissions purview on the fees for bad checks, the recormendation must indicate how it directly affects the Real Property Tax Division. Additionally, Mr. Kaneshiro asked whether the Commission's recommendation regarding the real property tax increase for the minimum tax exemption was within the Commissions purview. Ms. Esaki replied yes. Ms. Yoshida provided the Commission with the following infonnation on exemptions, Credit Unions fall under(501) (c) (14) and is not designated to be federal or state; Church fell under 501 (e) (3); Cemeteries fall under 501 (c) (13); Hospitals fall under 501 (c); Charitable fall under 501 (c) (3); and Schools fall under 501 (c) (3). She noted that there are 139 Charitable Organizations on Kauai which could mean multiple TMK's to one entity and the total exempt in value is $132,626. Based on their general nature of activities, Ms. Sterker questioned whether it would be appropriate for the Commission to leave the 501 (c) (3)type organizations alone. Ms. Sterker also questioned whether organizations that falls under the 501 (c) (4) and 501 (3) (6) should be exempt. She explained that those organizations receive fire and police protection. Cost Control Commission Regular Open Session August 13, 2012 Page I I SUBJECT DISCUSSION ACTION Ms. Yoshida stated that anybody who has a facility receives fire and police protection including the 501 (c) (3) and these organizations are treated by the IRS as a non-profit so, is it safe to say that the County should treat the 501 (c) (3) the same and give them the exemption. Ms. Yoshida expressed her concern that treating certain 501 (c) (3) different then another would be difficult to explain. Mis. Sterker indicated that the Commission has reviewed and discussed the multitude of excmptions for quite some time now and at some point the Commission needs to proceed in making a recommendation based on the in urination,it has received, Ms. Sterker felt strongly about eliminating the tax exemption for most of the non-profit organizations. She indicated that iii,ijol-Ity of the non-profits receive County services and should pay their portion of the services that they receive. Ms. Yoshida,suggested that the Commission should review the information again before it makes a recommendation. She indicated that it would be helpful for the Commission to know how an organization gets placed in a category. Vice-Ctiair Chaffin stated that this whole discussion is about the various categories. He felt that the question should revolve around which organization should be receiving the tax exemption and which ones should not and how the Commission wants to proceed on this. Ms. Yoshida clarified that the issue is on the tax exemption. Vice-Chair Chaffin replied yes. Cost Control Corninission Regular Open Session Aug-List 13, 2012 Page 12 SUBJECT DISCUSSfON ACTION Ms. Sterker suggested that the Commission go through each type of organization and determine which ones should receive the tax exemption and those who should not. Ms. Stcrker questioned whether it would be appropriate for the Commission to recommend different tax rates (percentage) for each of the non-profits rather than just having a flat tax rate. Vice-Chair Chaffin questioned whether the Commission has that authority. Ms. Sterker replied that the Commission can only make recommendations and that she is proposing that. Vice-Chair Chaffin asked who the Commission would make the suggestion to. Ms. Sterker replied to the Mayor. Ms. Sterkcr suggested that the Commission look into eliminating certain tax categories because those categories are costing the County money. Vice-Chair Chaffin commented that the Commission should look at the Tree Farms. He indicated that some Tree Farms have only 2 to 3 trees. Ms. Yoshida noted that the Tree Farms have grown from 14 to 114. At 2:45 p.m. the Commission took a 5 minute recess. At 2:50 p.m. the Commission reconvened. Ms. Yoshida requested for additional information frorn the Real Property Tax Division regarding which exemption types are no longer applicable to Kauai and whether there are other categories that are included in the list because no one took advantage of that tax exemption. Cost Control Commission Regular Open Session August 13, 2012 Page 13 SUBJE('."F DISCUSSION ACTION Ms. Morikanii commented that the purpose for the exemptions list was for the Commission to compare with the different counties on the zero exemptions and whether it was not an option for this County. Ms. Yoshida questioned whether the list was complete, if the County had other exemptions not listed and whether there was at least one exemption that a person could take advantage of. Additionally, Ms. Yoshida suggested that the Commission look at the exemptions that no one is taking advantage of because those would be the easiest to eliminate. Ms. Morikanii mentioned that at a previous Cost Control Commission meeting, the Commission wanted to know what the overlap was and Mr. Hunt indicated that it was whether it was filed using the old form or the new form and if it was accepted or not. She further stated that some of non-profits were listed under charitable and the others were listed Linder schools, Ms. Morikami further explained that Mr. Hunt also indicated that he would have no way of knowing out of the 139, which charitable would come under the 501 (c) (3) unless he manually looked at each charitable. For example, Linder charitable there are certain schools listed and the same goes with the credit unions. Ms. Yoshida suggested to the Commission that they should take home their binders and review the reference documents that were provided by the Real Property'fax Division pertaining to: I) Tax Year 201112012 Exemption f) ype/County/Total Exempt Value- and 2) Number and Amount of Exemption by'Type and County for fiscal year 2010-11. Vice-Chair Chaffin suggested that the Commission continue its discussion and deliberation, at its meet Cost Control Regular Open Session August 1 , 2012 Page 14 SUBJECT DISCUSSION ACTION Announcements Due to a conflict of meeting elates, the next regular scheduled meeting has been rescheduled to Tuesday, September 11, 2012 at 1:30 p.m. in the Liquor Conference Room 3. Adjournment Vice-Chair Chaffin called f�c.)r the motion to adjourn the meeting. Ms. Sterker moved to adjourn the meeting. Ms. Yoshida seconded the motion. Motion carried 5:0 At 3:00 p.rn. the mce' ng ac(:.urneel__ mm Submitted by: µ. Reviewed and Approved by: ,_______ Mercedes Youn, Staff Support Clerk Dirk Apao, Chair ( ) Approved as circulated (add date oftnecting approval). { ) Approved as amended. See minutes c i meeting.