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HomeMy WebLinkAbout011413_Agenda PacketSandi Sterker Members: Chair Lawrence Chaffin, Jr. Glen Takenouchi Laurie Yoshida Arryl Kaneshiro Vice -Chair COUNTY OF KAUAI COST CONTROL COMMISSIQIYE CE I `/ E D NOTICE OF MEETING AND AGENDA Monday, January 14, 2013 1:30 p.m. or shortly thereafter '12 DEC 28 P 1 :37 Mo'ikeha Building, Liquor Conference Room 3 4444 Rice Street, Lihue, HI 96766 THE co, CALL TO ORDER APPROVAL OF MINUTES Regular Open Session Meeting Minutes of December 10, 2012 COMMUNICATIONS CCC 2013 -01 Memorandum dated 12/13/12 from Council Chair Jay Furfaro to Chair Dirk Apao and Members of the Cost Control Commission, requesting agenda time to make a presentation on the financial position of the County of Kauai as it relates to Departmental expenditures versus budgeted amounts CCC 2013 -02 Memorandum dated 12/12/12 from Chair Dirk Apao to Ben Sullivan, Economic Development Specialist, requesting information as it relates to energy savings for County facilities. CCC 2013 -03 Communication dated 10/26/12 from First Deputy County Attorney to Chair Dirk Apao and Members of the Cost Control Commission, regarding information as it relates to real property non -profit organization exemption list BUSINESS CCC 2012 -13 Discussion on the County's travel budget, per diem policies, and expenditures (On- going) (d) Memorandum dated 12/12/12 from Chair Dirk Apao to Wallace Rezentes, Jr., Director of Finance, requesting additional information as it relates to the County's travel budget. An Equal Opportunity Employer CCC 2012 -15 Discussion on the County's real property tax age exemptions. (On- going) (c) Memorandum dated 12/11/12 from Chair Dirk Apao to Wallace Rezentes, Jr., regarding a request for additional information as it relates to Age Tax Exemption. (d) Communication dated 12/19/12 from Wallace Rezentes, Jr., Director of Finance to Chair Dirk Apao, responding to the Commission's request for additional information as it relates to Age Tax Exemption. CCC 2012 -16 Discussion on the County's special counsel contracts and expenditures to date (On- going) (e) Memorandum dated 12/11/12 from Chair Dirk Apao to Alfred Castillo, Jr., County Attorney, regarding a request for a response as it relates to special counsel contracts. ANNOUNCEMENTS The next meeting: Monday, February 11, 2013, 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 PUBLIC COMMENTS and TESTIMONY Persons wishing to offer comments are encouraged to submit written testimony at least 24 -hours prior to the meeting indicating: 1. 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. 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 2 1 P a g e Cost Control Commission — January 14, 2013 Send written testimony to: Cost Control Commission Attn: Mercedes Omo -Your Office Boards and Commissions 4444 Rice Street, Suite 150 Lihue, HI 96766 E -Mail: myoun(a»kauai.gov Phone: (808) 241 -4920 Fax: (808) 241 -5127 SPECIAL ASSISTANCE 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. 3 � P a g e Cost Control Commission — January 14, 2013 COUNTY aFKAUAI =-I@ ftA'0e'.419 Minutes of Meeting OPEN SESSION Board/Committee: I COST CONTROL COMMISSION Meeting Date I December 10, 2012 Location Mo'ikeha Building — Liquor Conference Room 3 Start of Meeting: 1:31 p.m. End of Meeting: 2:25 p.m. Present Chair Dirk Apao; Members: Sandi Sterker; Arryl Kaneshiro; and Glen Takenouchi Also First Deputy County Attorney Amy Esaki; Board & Commissions Office Staff. Support Clerk Mercedes Youn; Administrator Paula Morikami; Administrative Aide Teresa Tamura; Purchasing/Budget Director Ernest Barreira; and Ken Shimonishi Budget Analyst. (Entered into the meeting at 1:40 p.m.) Public testimony: Mr. Jim Satterfield Excused Commissioners: Lawrence Chaffin, Jr., and Laurie Yoshida Absent SUBJECT DISCUSSION ACTION Call To Order Chair Apao called the meeting to order at 1:31 p.m. Approval of Regular Open Session Minutes of November 8, 2012. Commissioner Sterker moved to approve the Minutes minutes as circulated. Commissioner Takenouchi seconded the motion. Motion carried 4:0 Chair Apao indicated that a minor correction needed to be made to a communication listed under business item CCC 2012 -16 of the agenda which relates to a communication dated 11/15/12 from County Attorney Alfred Castillo, Jr. be amended to show the item as item d and not (c). Communications CCC 2012 -17 Email dated 11/13/12 from Public Works Building Supervisor Brian Inouye to the Cost Control Commission, responding to the Commission's inquiry as to what the normal life span of an air conditioning unit is, more specifically the unit housed in the County's Police Department. Cost Control Commission Regular Open Session Minutes December 10, 2012 Page 2 SUBJECT DISCUSSION ACTION Commissioner Sterker stated that she was curious as to why the air conditioning units housed in the Police Department needed to be running 24 hours a day, seven days a week. She questioned whether there are other alternative energy solutions that could be utilized to alleviate having the air conditioning units running 24 hours, 7 days a week. Commissioner Takenouchi stated that the reason the air conditioning units in the Police Department must remain on 24/7 is because the Police Department is a 24 hour operation. Chair Apao questioned the cost of the A/C units and what would the expense be when the units have to be replaced within the next five (5) years. Commissioner Sterker requested that Staff contact Economic Development Specialist Ben Sullivan to see whether this type of information is available and that he send a written response to the Cost Control Commission in time for the meeting in January 2013. Chair Apao called for a motion to receive item CCC 2012 -17. Commissioner Sterker moved to receive. Commissioner Takenouchi seconded the motion. Motion carried 4:0 Business CCC 2012 -13 Discussion on the County's travel budget, per diem polices, and expenditures. (On- going) (c) Communication dated 11/9/12 from Chair Apao to Purchasing and Budget Director Ernest Barreira, requesting his presence at the December meeting to answer questions pertaining to his report on the County's Expenditures for Travel General & Training) Cost Control Commission Regular Open Session Minutes December 10, 2012 Page 3 SUBJECT DISCUSSION ACTION Chair Apao called for a motion to receive item CCC 2012 -13 (a). Commissioner Sterker moved to receive. Commissioner Takenouchi seconded the motion. Mr. Barreira introduced Budget Analyst Ken Shimonishi who was instrumental in putting together the report pertaining to the County's Expenditures for Travel (General & Training). Commissioner Kaneshiro said that it would help the Commission to better analyze the report if the Commission had the original 2012 budget numbers. He noted that although the Commission could compare the numbers year to year, he wondered whether it was a common practice for the departments to request for more funds for a particular reason. For clarity, Mr. Shimonishi asked Commissioner Kaneshiro whether he was asking for the original budget numbers or what was adjusted. Mr. Shimonishi explained that there were instances where some funds would be transferred to another line amount to cover the unexpected travel shortages. Mr. Barreira added that all money transfers must be approved by the Administration and offered to provide the Commission with the starting budget numbers although it might differ substantively from where it ends up at the end of the fiscal year. Commissioner Kaneshiro stated that he would be satisfied if they could provide just the starting numbers for fiscal year 2012 and the adjusted amounts. Commissioner Kaneshiro asked who would be the appropriate authority to go to when modifying the travel budget. Cost Control Commission Regular Open Session Minutes December 10, 2012 Page 4 SUBJECT DISCUSSION ACTION Mr. Barreira said that it was an Administrative process and as long as it is not an interdepartmental adjustment, the Administration has the authority to make adjustments if they felt that appropriations needed to be made. Chair Apao stated that he noticed in the report that there were two (2) types of grants, one for the Federal and the other a State grant. He asked if it was right for him to assume that on the federal grant side, the department would receive the grant first before any travel could commence, and the same would go for the state. Mr. Barreira explained that there is a little bit of accountability for the grant source because the monies appropriated from the grant must be used specifically for that purpose. Chair Apao asked what happens if the money is not expended; where does the money go and are they obligated to spend the money in its entirety. Mr. Barreira explained that it largely depends on the conditions noted within the grant, however, the General Fund is less complicated because if the funds are not utilized it would simply lapse back into the General Fund. Mr. Shimonishi clarified that the budget would be pre - approved up front for the grant and then one would submit for reimbursement from the grant. Commissioner Sterker asked what does the negative numbers represent, specifically the numbers in the Civil Defense column. Mr. Shimonishi replied that the negative numbers reflect an adjustment in the actual line item or the actual expense; he noted that he would have to do further research on the specifics although it could have been a recording for that certain line item. For example, if it was something that was charged to a grant in error which should have been charged to the General Fund the adjustment would reflect in the numbers. Cost Control Commission Regular Open Session Minutes December 10, 2012 Page 5 SUBJECT DISCUSSION ACTION Commissioner Sterker voiced her concern that $60,000 could be spent in one year and then the following year the expenditures are less than $4,000. Mr. Shimonishi replied that he needs to do more research to be able to respond to that question. Commissioner Sterker felt that it was a concern that the travel budget also seemed to have doubled from the previous years. Mr. Barreira explained that the report is an ongoing document and that the numbers reflected in the report may increase in 2013. He indicated that the Budget Analyst's in their budget instructions are asking the departments to account for travel related costs differently so it's not an apple to apple comparison when looking at the figures. Mr. Barreira stated that if it's the Commission's general concern on whether the County is spending too much money on travel they are in current dialogue as they prepare for fiscal year 2013. Commissioner Sterker asked whether most of the travel has to do with training. Mr. Shimonishi replied that he can't say whether most of it is related to training however, what they use to capture the report's information is the account numbers that are associated with general travel and travel training. Mr. Shimonishi indicated that he does not have the information on the components associated with general travel and travel training but is willing to do the breakdown at the request of the Commission. Commissioner Sterker indicated that it would be helpful for the Commission to have that information. Mr. Barreira mentioned that the training elements usually involve airfare, Cost Control Commission Regular Open Session Minutes December 10, 2012 Page 6 SUBJECT DISCUSSION ACTION per diem, transportation, room and board and incidentals and that the cost would be substantial. Mr. Barreira informed the Commission members that as of February 2012 the Purchasing Department now has a fully integrated budget team as opposed to a one man team which at the time was Mr. Alvin Honda who oversaw the County's entire budget. Mr. Barreira stated that as the department begins to move forward with its budget exercise it seems to be getting better as far as being able to itemize each cost and resulting in getting a better analysis. With no further discussion, Mr. Barreira and Mr. Shimonishi left the meeting at 2:05 p.m. Chair A ao called for the vote to receive item CCC 2012 -13 (a). Motion carried 4:0 CCC 2012 -15 Discussion on the County's real property tax age exemptions. (On- going (a) Communication dated 11/9/12 from Chair Apao to Real Property Division Appraisal Officer Steve Hunt, regarding a request for information relating to the real property tax age exemptions. Chair Apao called for a motion to receive item CCC 2012 -15 (a). Commissioner Sterker moved to receive. Commissioner Takenouchi seconded the motion. Motion carried 4:0 (b) Communication dated 11/30/12 from Finance Director Wallace Rezentes, Jr., to Chair Apao and Members of the Cost Control Commission, regarding information on Homeowners age exemptions. Cost Control Commission Regular Open Session Minutes December 10, 2012 Page 7 SUBJECT DISCUSSION ACTION Chair Apao called for a motion to receive item CCC 2012 -15 (b). Commissioner Sterker moved to receive. Commissioner Takenouchi seconded the motion. Commissioner Sterker said that she felt having just one tax assessment for people under 65, and one tax assessment for people over 65 would simplify things for the staff at the Real Property Tax Division. She explained that currently, the resident homeowners who are younger than age 60 receive a $48,000 tax exemption and once they reach the age bracket of 60 to 69 years old, their exemption doubles to $96,000, over 70, the tax exemption would increase to $120,000. Commissioner Sterker explained that by amending the current tax age exemption it would eliminate the middle age bracket which is for those 60 to 69 years old and delay an increased tax relief until the homeowner reach 65 years old, in which time they would receive a $120,000 tax exemption. She further explained that her proposal would create a two tier tax exemption; one for people age 65 and over who would receive a $120,000 tax exemption and the other is for people under the age of 65 who would receive a $48,000 tax exemption. Chair Apao stated that one of the reasons the Commission is recommending such a change is to alleviate the workload for the Real Property Division staff and possibly save time and money for the County. Chair Apao referred to a communication dated 6/21/12 from Deputy Finance Director Sally Motta. Cost Control Commission Regular Open Session Minutes December 10, 2012 Page 8 SUBJECT DISCUSSION ACTION He pointed out that the City and County of Honolulu have only two (2) tax brackets, one of which is for Basic Home Use homeowners who receive an $80,000 tax exemption, and the other is for people 65 and over who receive a $120,000 tax exemption. He further noted that Maui County has only one exemption type for Basic Home Use in which the homeowners receive a $300,000 tax exemption. Hawaii County has three (3) tax categories, the first is Basic Home Use tax exemption of $40,000, second, is for people age 60 to 69 years old, who receives an $80,000 tax exemption; and the third, is for people over 70 who receives a $70,000 tax exemption. Commissioner Sterker stated that her recommendation would place Kauai in line with the City and County of Honolulu. Commissioner Kaneshiro voiced his concern that the recommendation lacked certain key elements as far as what the ramifications would be to eliminate a middle tax age bracket and if the proposal would increase revenues for the County. He asked that the Commission send a request to the Real Property Tax Division to get input on changing the age and the exemptions. Commissioner Kaneshiro stated that if the recommendation ends up going before the Council, at least the Commission would have some justification whether than just trying to explain to Council that the reason the Commission is recommending this change is to make things simpler for the Real Property Tax Division staff. Cost Control Commission Regular Open Session Minutes December 10, 2012 Page 9 SUBJECT DISCUSSION ACTION Commissioner Takenouchi said that the issue is a two -fold issue because it doesn't just involve what the tax ramifications would be, but also whether or not it would be a real savings for the County. Commissioner Takenouchi stated that he agreed with Commissioner Kaneshiro to ask the Real Property Tax Division to do an analysis on the amount of savings the recommendation would have for the County. Commissioner Kaneshiro said that it would be impossible for the Real Property Tax Division to provide that type of information because regardless of the age there is no definitive way to segregate the amount of taxes paid by any specific tax bracket. Commissioner Sterker added that according to the Director of Finance, it would be nearly impossible to isolate the impact of the additional home exemption for an age because there can be layered exemptions for low income, disability or multiple owners with multiple home use exemptions. Commissioner Kaneshiro asked Commissioner Sterker whether she based her proposal on a comparison with the City and County of Honolulu. Commissioner Sterker replied that she picked age 65 because it's the age when people can retire and receive health care and social security. Chair Apao suggested that the Commission continue its discussion on this matter at its next meeting in January. He instructed Staff to send the Commission's inquiry to the Director of Finance as it relates to if the Age Exemption were broken out as under age 60 Cost Control Commission Regular Open Session Minutes December 10, 2012 Page 10 SUBJECT DISCUSSION ACTION and 60 an over; the under 60 at the rate of $48,000, and the 60 and over at the rate of $120,000; would you be able to run a before and after, as far as the tax relief, and what cost and time savings would amount to as far as reducing one of the age exemptions. With no further discussion, Chair Apao called for the vote to receive item CCC 2012 -15 Motion carried 4:0 CCC 2012 -16 Discussion on the County's special counsel contracts and expenditures to date (On- going) (c) Communication dated 11/9/12 from Chair Apao to County Attorney Alfred Castillo, Jr., requesting for additional information and his presence to discuss questions as it relates to special counsel contracts. Chair Apao called for a motion to receive item CCC 2012 -16 (c). Commissioner Takenouchi moved to receive. Commissioner Sterker seconded the motion. Motion carried 4:0 (d) Communication dated 11/15/12 from County Attorney Alfred Castillo, Jr., to Chair Apao and Members of the Cost Control Commission, responding to the Commission's request for additional information as it relates to special counsel contracts. Chair Apao called for a motion to receive item CCC 2012 -16 (d) Commissioner Takenouchi moved to receive. Commissioner Sterker seconded the motion. Motion carried 4:0 Mr. Jim Satterfield, member of the public, distributed a list of questions as it relates to this issue, which is attached hereto. Mr. Satterfield expressed his concerns on the amount of tax payer's money being spent specifically on an ongoing case that involved his personal business. Cost Control Commission Regular Open Session Minutes December 10, 2012 Page 11 SUBJECT DISCUSSION ACTION Mr. Satterfield stated that he cannot believe that his case is still in limbo after ten (10) years even after the Judge dismissed the case and ruled in his favor, granting him the rights to continue his bottling water business. Commissioner Sterker explained that the Commission's responsibilities are to eliminate or consolidate overlapping or duplicate programs and services and to scrutinize for reduction of any County operation. Mr. Satterfield remarked that he had hoped that Mr. Castillo was going to be present at today's meeting so that he could address some of his questions and concerns directly to him as it relates to special counsel contracts. Specifically on whether the County has a ceiling on how much money can be spent on erroneous cases. He pointed out that according to Mr. Castillo's response it seemed like he has a Carte Blanche to spend on any appeal that he wants to and even if it goes to the Supreme Court. First Deputy County Attorney Amy Esaki stated that the County Attorney does not have a Carte Blanche when it comes to special counsel contracts. She explained that any time the County Attorney makes a determination that special counsel is needed for a case, he needs to go before Council and justify the need for special counsel. Once Council approves the request he can then move forward in obtaining special counsel. Ms. Esaki noted that for each case there is no retainer fee just a set contract amount which can be amended from time to time depending on the case. Cost Control Commission Regular Open Session Minutes December 10, 2012 Page 12 SUBJECT DISCUSSION ACTION Commissioner Sterker questioned whether it would be appropriate to request information from the County Attorney regarding hiring more staff for a Specialized Litigation Team in the County's Attorney's Office and whether it would reduce the need for special counsel and what would be the pros and cons. Staff acknowledged the Commission's request and would make an inquiry to the County Attorney's Office to see whether they could provide the information to the Commission. Mr. Satterfield left the meeting at 2:30 p.m. CCC 2012 -18 Discussion and decision - making on a draft of the 2012 Cost Control Commission Annual Report. Commissioner Sterker moved to approve the draft of the 2012 Cost Control Commission Chair Apao called for a motion to approve the draft of the 2012 Cost Annual Report as circulated. Commissioner Control Commission Annual Report. Takenouchi seconded the motion. Motion carried 4:0 CCC 2012 -19 Discussion and decision - making on the 2013 Cost Control Commission Meeting Schedule. The Commissioner's requested that the October 14th meeting be moved to Thursday, October 17th because it falls on Columbus Day which is a holiday for the Commissioner's. Staff acknowledged the Commission's request and would make the necessary changes. Cost Control Commission Regular Open Session Minutes December 10, 2012 Page 13 SUBJECT DISCUSSION ACTION Chair Apao called for the motion to approve the 2013 meeting schedule as Commissioner Sterker moved to approve the amended. 2013 Cost Control Commission meeting schedule as amended. Commissioner Takenouchi seconded the motion. Motion carried 4:0 CCC 2012 -20 Election of Chair and Vice -Chair for 2013. Commissioner Kaneshiro nominated Sandi Sterker for Chair. Commissioner Takenouchi seconded the motion. Motion carried 4:0 Commissioner Sterker nominated Arryl Kaneshiro for Vice - Chair. Commissioner Takenouchi seconded the motion. Motion carried 4:0 Announcements Next meeting: Monday, January 14, 2013 at 1:30 p.m. at the Mo'ikeha Building, Liquor Conference Room 3. Adjournment At 2:25 p.m. Commissioner Takenouchi moved to adjourn the meeting. Commissioner Kaneshiro seconded the motion. Motion carried 4:0 Submitted by: Mercedes Youn, Staff Support Clerk () Approved as circulated (add date of meeting approval). () Approved as amended. See minutes of meeting. Reviewed and Approved by: Sandi Sterker, Chair- Elect COUNTY COUNCIL Jay Furfaro, Chair Nadine K. Nakamura, Vice Chair Tim Bynum Gary L. Hooser Ross Kagawa Mel Rapozo JoAnn A. Yukimura OFFICE OF THE COUNTY CLERK Ricky Watanabe, County Clerk Jade K. Fountain- Tanigawa, Deputy County Clerk Telephone (808) 2414188 Fax (808) 241 -6349 Email cokcouncil @kauai.gov Council Services Division 4396 Rice Street, Suite 209 Lihu`e, Kauai, Hawaii 96766 MEMORANDUM ............................... L� December 13, 2012 DEC 1 82012 J BOARDS & COMMISSIO ".!!� TO: Dirk Apao, Cost Control Commission Chair - and Members of the Cost Control Commission ATTN: Paula Morikami, Boards and Commissions Administrator FROM: Jay Furfaro, Council Chair RE: PRESENTATION TO THE COST CONTROL COMMISSION RELATING TO THE FINANCIAL POSITION OF THE COUNTY OF KAUAI AS IT RELATES TO DEPARTMENTAL EXPENDITURES VERSUS BUDGETED AMOUNTS I would like to formally request agenda time during a Cost Control Commission Meeting in early 2013 to make a presentation on the financial position of the County of Kauai as it relates to Departmental expenditures versus budgeted amounts. As the Comprehensive Annual Financial Review (CAFR) for the Fiscal Year Ending June 30, 2012 is being reviewed by the Council on December 18, 2012, I would like to present my findings to the Cost Control Commission at one of your meetings in January 2013. Please contact me or Council Services Staff at 241 -4188, should you be able to accommodate my request of agenda time at one of your meetings. SS:eb cc: Gary K. Heu, Managing Director AN EQUAL OPPORTUNITY EMPLOYER Dirk Apao Members: Chair Sandi Sterker Brant Fuchigami Lawrence Chaffin Jr. Amyl Kaneshiro Vice -Chair Glen Takenouchi Laurie Yoshida COUNTY OF KAUAI COST CONTROL COM MSION MEMORANDUM TO: Ben Sullivan, Economic Development Specialist FROM: Dirk Apao, Cost Control Commission Chair VIA: Paula M. Morikami, Office of Boards and Commissions Administrato CC: Gary Heu, Managing Director DATE: December 12, 2012 SUBJECT: Questions Regarding Energy Savings for County Facilities Aloha Ben, The Cost Control Commission would like to thank you for your update on the recommendations on energy savings for County Facilities. The Commission has a few questions regarding the AC units located at the Kauai Police Department. 1) Can something be done about having the AC units running 24 hours, 7 days a week? 2) Are there any other alternatives for the AC units to be turned off at night? 3) What was the cost of the AC units that are currently installed; and what will the expense be when they have to replace the AC units? The Commission would appreciate a written response by December 28, 2012 so we can discuss this item at our next scheduled meeting. Please call or email Teresa Tamura at ext. 4918 or ttamuraftsuai.gov, at the Office of Boards and Commissions if you have any questions. Thank you. An Equal Opportunity Employer Bernard P. Carvalho, Jr. Mayor Gary K. Hen Managing Director OFFICE OF THE COUNTY ATTORNEY County of Kauai, State of Hawaii 4444 Rice Street, Suite 220, LYhu`e, Hawaii 96766 -1300 TEL (808) 241 -4930 FAX (808) 241 -6319 October 26, 2012 Dirk Apao, Chairman and Members of The Cost Control Commission 4444 Rice Street Lihue. Hawaii 96766 RE: Real Property Non - Profit Organization Exemption List Alfred B. Castillo, Jr. County Attorney Amy I. Esaki First Deputy Dear Honorable Chair Apao and Members of the Cost Control Commission: At your last October 8, 2012 Cost Control Commission Meeting, you asked me to check on how many of the non - profit organization on the exemption list that was provided to you by the Real Property Tax Office were paying the minimum tax. According to the real property tax records on the County of Kauai's website, only 32 out of 300 parcels listed are paying more than the minimum tax. If you have any questions, please feel free to contact me at 241 -4930. Thank you. Sincerely, 9 i Amy I. Esaki First Deputy County Attorney An Equal Opportunity Employer Dirk Apao Members: Chair Sandi Sterker Arryl Kaneshim Lawrence Chaffin Jr. Glen Takenouchi Vice -Chair ice_ Laurie Yoshida COUNTY OF KAUAI COST CONTROL COMMSSION MEMORANDUM TO: Wally Rezentes, Finance Director FROM: Dirk Apao, Cost Control Commission Chair VIA: Paula M. Morikami, Office of Boards and Commissions Administrato CC: Ernest Barreira, Gary Heu, Managing Director DATE: December 12, 2012 SUBJECT: Follow -up Question on Travel Budgets Aloha Wally, The Cost Control Commission would like to thank Ernie Barreira for appearing at our meeting on December 10, 2012. This is a follow up memorandum for the items they requested. 1. Starting and ending numbers (adjusted) for the years provided on the Expenditures for Travel spreadsheet. 2. Travel costs associated with Training. The Cost Control Commission would appreciate a written response on or before December 28, 2012, so we can discuss this item at our next scheduled meeting. If you have any questions, I can be reached through Teresa Tamura at 2414918 or ttamura@jjjnai.gov. Thank you. An Equal Opportunity Employer Dirk Apao Members: Chair Sandi Sterker Arryl Kaneshiro Lawrence Chaffin Jr. o° Glen Takenouchi Vice -Chair OI tDa Laurie Yoshida COUNTY OF KAUAI COST CONTROL COMMISSION MEMORANDUM TO: Wally Rezentes, Finance Director FROM: Dirk Apao, Cost Control Commission Chair VIA: Paula M. Morikami, Office of Boards and Commissions Administrato CC: Sally Motta, Deputy Director of Finance Steve Hunt, Real Property Division Appraisal Officer Q 2 n �ij Gary Heu, Managing Director E it V DATE: December 11, 2012 DEC 13 2012 DIRECTOR OF FINANCL SUBJECT: Follow -up Question on Age Tax Exemption COUNTY OF KAUAI Aloha Wally, The Cost Control Commission would like to thank you for your response to our memo dated November 9, 2012. At its meeting on December 10, 2012, the Cost Control Commission discussed the chart of the existing breakdowns provided by you on November 30, 2012. One question the Commission asked is: If the Age Exemptions were broken out as under age 60 and 60 and over; the under 60 at the rate of $48, 000, and the 60 and over at the rate of $120, 000; would you be able to run a before and after, as far as tax relief, what the cost and time savings would amount to as far as reducing one of the age exemptions. The Cost Control Commission would appreciate a written response on or before December 28, 2012, so we can discuss this item at our next scheduled meeting. If you have any questions, I can be reached through Teresa Tamura at 241 -4918 or ttamura@,kauai.gov. Thank you. An Equal Opportunity Employer Bernard P. Carvalho, Jr. Mayor Gary K. Hen Managing Director DEPARTMENT OF FINANCE County of Kauai, State of Hawaii 4444 Rice Street, Suite 280, Lihu`e, Hawaii 96766 TEL (808) 2414281 FAX (808) 241 -6252 To: Dirk Apao, Cost Control Commission Chair Wallace G. Rezentes, Jr. Director of Finance Sally A. Motta Deputy Director of Finance � C E u_I j- DEC 2 0 2012 BOARDS & COMMISSOI° Via: Paula M. Morikami, Office of Boards and Commissio s Administrator From: Wallace G. Rezentes, Jr., Director of Finance Date: December 19, 2012 RE: Follow -up Question on Age Tax Exemption December 11, 2012 Memorandum Due to the complexities with the PHU Cap and varying tax rates, the best I can do is a "ballpark" estimate. The majority of the 3,490 taxpayers (aged 60 -69) with home use exemptions are in the Homestead tax class, so the additional exemption amount of $24,000 ($120,000 - $96,000) at the current Homestead tax rate of $3.05 per thousand equates to $73.20 per exemption or $255,468 in total tax relief. Whether the additional age exemption is broken in two or three categories is immaterial as the applicant's birthdates must be entered by our staff. Thus, would be no cost savings or efficiencies achieved by reducing the three age thresholds down to two. On the other hand, it would result in approximately $250,000 in lost revenue by way of additional tax relief. Gary K. Heu, Managing Director Sally A. Motta, Deputy Director of Finance Dirk Apao Members: Chair Sandi Sterker Atryl Kaneshiro Lawrence Chaffin Jr. Glen Takenouchi Vice -Chair iai_. Laurie Yoshida COUNTY OF KAUAI COST CONTROL COMMISSION MEMORANDUM TO: Alfred Castillo, Jr., County Attorney FROM: Dirk Apao, Cost Control Commission Chair VIA: Paula M. Morikami, Office of Boards and Commissions Administrato CC: Gary Heu, Managing Director DATE: December 11, 2012 SUBJECT: Follow -up Question on Special Counsel Contracts Aloha Al, The Cost Control Commission would like to thank you for your response to our memo dated November 9, 2012. At its meeting on December 10, 2012, the Cost Control Commission discussed your response dated November 15, 2012. One question the Commission asked is: Would hiring more staff for a Specialized Litigation Team in the County Attorney's Off ce reduce special counsel needs? Would you be able to provide pros and cons? The Cost Control Commission would appreciate a written response on or before December 28, 2012, so we can discuss this item at our next scheduled meeting. If you have any questions, I can be reached through Teresa Tamura at 241 -4918 or ttamuraftauai.ttov. Thank you. An Equal Opportunity Employer