Loading...
HomeMy WebLinkAbout12913 Agenda PacketSandi Sterker Members: Chair Dirk Apao Lawrence Chaffin, Jr. Glen Takenouchi Arryl Kaneshiro Laurie Yoshida Vice Chair Joann Nakashima COUNTY OF KAUAI COST CONTROL COMMISSION NOTICE OF MEETING AND AGENDA Monday, December 9, 2013 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 meeting minutes of November 14, 2013 BUSINESS CCC 2013 -25 Selection of 2014 Chair and Vice Chair CCC 2013 -26 Approval of the 2014 Cost Control Commission Meeting Schedule CCC 2013 -27 Memorandum dated November 1, 2013 from Councilmember JoAnn A. Yukimura to Chair Sterker and Members of the Cost Control Commission, regarding a request for agenda time to discuss the financial impact of Unit 12, State of Hawaii Organization of Police Officers (SHOPO) collective bargaining agreement CCC 2013 -28 Discussion and decision - making on a draft of the 2013 Annual Cost Control Commission Report summarizing the Commission's recommendations for the calendar ANNOUNCEMENTS The next meeting: Monday, January 13, 2014, 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. An Equal Opportunity Employer Vic:► "S cam• � .� �"1 �, CCC 2013 -26 Approval of the 2014 Cost Control Commission Meeting Schedule CCC 2013 -27 Memorandum dated November 1, 2013 from Councilmember JoAnn A. Yukimura to Chair Sterker and Members of the Cost Control Commission, regarding a request for agenda time to discuss the financial impact of Unit 12, State of Hawaii Organization of Police Officers (SHOPO) collective bargaining agreement CCC 2013 -28 Discussion and decision - making on a draft of the 2013 Annual Cost Control Commission Report summarizing the Commission's recommendations for the calendar ANNOUNCEMENTS The next meeting: Monday, January 13, 2014, 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. An Equal Opportunity Employer 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 Send written testimony Cost Control Commission Attn: Mercedes Omo -Your Office Boards and Commissions 4444 Rice Street, Suite 150 Lihue, HI 96766 E -Mail: myoun(i4kauai.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. 21 Cost Control Commission — Monday, December 9, 2013 COUNTY OF KAUAI Minutes of Meeting OPEN SESSION RRIANT �A' 'D 'J Board/Committee: I COST CONTROL COMMISSION Meeting Date I November 14, 2013 Location Mo'ikeha Building — Meeting Room 2A/B Start of Meeting: 1:30 p.m. I End of Meeting: 3:03 p.m. Present Chair Sandi Sterker; Vice -Chair Arryl Kaneshiro; Members: Dirk Apao (arrived at 2:11 p.m.) Lawrence Chaffin Jr., Joanne Nakashima Also present: First Deputy County Attorney Amy Esaki; Boards & Commissions Office Staff: Support Clerk Mercedes Youn; Administrator Paula Morikami; Administrative Aide Teresa Tamura; County Engineer Larry Dill; Sustainability Manager Glenn Sato; and Economic Development Specialist Ben Sullivan. Excused Commissioners Glen Takenouchi and Laurie Yoshida Absent SUBJECT DISCUSSION ACTION Call To Order Chair Sterker called the meeting to order at 1:30 p.m. Approval of Regular Open Session Minutes of October 14, 2013 Vice Chair Kaneshiro moved to approve the Minutes minutes as circulated. Commissioner Chaffin seconded the motion. Motion carried 4:0 Business CCC 2013 -22 Discussion on the vacancies in the Department of Public Works versus overtime. County Engineer Larry Dill made a presentation on information provided to the Commissioners relating to current vacant positions, data showing actual budget of the various divisions, annual overtime budget, vacancies and breakdowns, comp time cash paid out, and a graph representing various peak levels of overtime hours in the solid waste operations from November 2011 through August 2013. Mr. Dill began by thanking the Commissioners for inviting him to the meeting to discuss the vacancies and overtime in the Public Works Department. Cost Control Commission Regular Meeting - Open Session November 14, 2013 Page 2 SUBJECT DISCUSSION ACTION He referred to a list of vacant positions provided to the Commissioners relating to a vacant position for a body and fender repairer that has been vacant since 11/1/09. He explained that the position has remained vacant because funds for the position were used to fund a supervisor position in the Repair Shop which they are currently looking to fill this fiscal year. He pointed out that the position for a Construction Inspector I, SR -16 that has been vacant since 2009 is dollar funded which why the position was never filled. He stated that the four (4) Civil Engineer positions that became vacant in August and September of 2013 would be filled by December 2013. He noted that the position of a Civil Engineer I will be converted to a Construction Inspector I to help support the engineering division because the department currently has only two inspectors where in the past, there were at least four to five construction inspector positions. Commissioner Chaffin asked if the applicants for the Civil Engineer positions are licensed professionals. Mr. Dill said no, and explained that the Civil Engineer positions I through III are unlicensed and positions VI on up require a professional license. Commissioner Chaffin asked whether it would be a misnomer to call the applicants Civil Engineers because they are unlicensed. Mr. Dill explained that the applicants all have engineering degrees and that the technicality of a professional engineer only implies if that the person is licensed. He stated that a person with a Civil Engineer degree does not necessarily mean that the person is licensed but practices engineering work in some capacity. Chair Sterker asked if majority of the vacant positions can be filled by people living on the island or would the County extend its recruitment outside of the County. Mr. Dill stated that they have received applications from Oahu and the mainland and one of Civil Engineer positions is being Cost Control Commission Regular Meeting - Open Session November 14, 2013 Page 3 SUBJECT DISCUSSION ACTION filled by a person from Washington State but was born and raised on Kauai and the other person is coming from Oahu. He pointed out that majority of the applicants that applied for the higher level positions are from the mainland and although the Personnel Department is taking the lead in the recruitment process he would be directly involved in hiring for the Civil Engineer VII, EM -7 position. Commissioner Chaffin asked what does the acronyms EM and SR stand for. First Deputy County Attorney Esaki explained that the acronyms EM & SR stood for Excluded Management and Salary Ranges. Chair Sterker asked Mr. Dill to provide an explanation on the overtime. Mr. Dill explained that the overtime in the fiscal department was due to the retirement of its senior fiscal officer and the comp time that was paid out. He explained that the increase in the building division's budget in the amount of $22,362 was due to a combination of employees retiring and the implementation of a new on -call policy that deals with maintenance issues outside of regular working hours. Chair Sterker asked for clarification on what rate is comp time paid. Mr. Dill explained that the employees with accrued overtime have the option to either request for a cash payout as part of their paycheck or have the overtime recorded as comp time. He further explained that comp time could also be converted into vacation time and when an employee leaves County service any unused vacation time will be paid out as cash. Commissioner Chaffin asked if there is a minimum that an employee can accrue comp time after of which it will be lost. Mr. Dill stated that he does not believe that there is a limit and would have to ask. Cost Control Commission Regular Meeting - Open Session November 14, 2013 Page 4 SUBJECT DISCUSSION ACTION First Deputy County Attorney Esaki clarified that an employee can only accrue up to 240 hours of comp time. Mr. Dill stated that the Department of Public Works is working on and manage its overtime in the Solid Waste Operations specifically, at the transfer stations including the Kekaha landfill. He explained that the work schedule was a major contributor to the increase in overtime so much that they had to modify the hours of operation from a ten hour day to an eight hour day. He stated that in the past, the work schedule called for just the minimal amount of staff except for one day in the week. But now, they have more than the minimal amount staff to address the problem if someone were to call in sick they would have the minimum amount of staff without having to call a person and pay them overtime to cover the person who is out sick. Mr. Dill stated that the overtime in the wastewater division in fiscal year 2013 will be considerably less in fiscal year 2014 because in 2013 the department had to deal with spills and equipment breakdown that happened earlier in the year. This is similar in the highway roads division because of unforeseen events that may occur. Chair Sterker commented that basically, the cause of overtime is due to catastrophic events and not a shortage of employees, to which Mr. Dill replied yes. Commissioner Chaffin asked whether the unforeseen events would cause additional overtime in other County departments. Mr. Dill said normally no however, it depends on the nature of the event and which departments would have to get involved. The Commissioners thanked Mr. Dill for his time and his commitment in Cost Control Commission Regular Meeting - Open Session November 14, 2013 Page 5 SUBJECT DISCUSSION ACTION Mr. Dill left the meeting at 1:50 p.m. CCC 2013 -24 Presentation by Economic Development Sustainability Manager Glenn Sato on the County Sustainability Plan. Mr. Sato stated that that the information before them addresses the County's operational efficiencies and sustainability practices and is intended as an internal guide to improve operational sustainability and not for community use. He stated that the plan is a living document that will be kept in a working draft form that can be revised and improved along the way especially, in the area of metrics to measure its progress. He noted that the Office of Economic Development wants to reduce or minimize the County's carbon footprint which is directly related to energy savings and better use of resources. Mr. Sato stated that in 2011 he was tasked to measure the County's carbon footprint which he found was hard to do. He stated how grateful he was for having the opportunity to establish a good working relationship with KIUC (Kaua`i Island Utility Corporation) especially because they were willing to provide information on the County's energy and electrical use. However, on the flip side he hit a stone wall because at that time, the County was using a gas activated voice system that did not function well forcing the employees to manually enter the data into the system. The information never came together so he had to resort to collecting field purchase data which was not a good way to collect information. In meantime, he had learned that the Department of Public Works had just purchased a new system called the "Fuel Master" which is still in operation today and working well. He explained that the system collects accurate data on fuel uses in terms of who is using it and what departments are usin an x- amount of gallons of gas and diesel. Cost Control Commission Regular Meeting - Open Session November 14, 2013 Page 6 SUBJECT DISCUSSION ACTION Mr. Sato then referred to a copy of a Powerpoint presentation provided to the Commissioners that was recently presented to the County Council. The information reflect the County's "Operations Sustainability and Climate Action Plan including a matrix highlighting the following eight goals: 1) Energy savings — to reduce overall County electricity use from 2012 levels by 30% by 2023, using 2013 as a baseline; 2) Drive less and drive clean — to reduce County fossil fuel transportation energy use by 50% by 2023, using 2013 as a baseline; 3)Use green energy- use green energy in place of energy derived from fossil fuels; 4)Save water - institute measures to better utilize water resources; 5) Recycle and cut waste- to reduce paper waste and reuse paper whenever possible, recycle used paper, cardboard, plastics, metals, glass and other materials; reduce use of disposables; 6) Buy green- purchase green products; 7) Build green — utilize green building practices and materials for new County facilities; and 8) Anticipate climate change — monitor and prepare for impacts of climate change and sea level rise on County facilities and operations. Mr. Sato stated that majority of projects in the plan will take time to develop especially the large projects because they have potential of making a huge impact to the County's carbon footprint. Commissioner Kaneshiro asked what are the County's carbon footprint emissions in terms of reducing fossil fuel; electrical uses. Mr. Sato stated that the carbon footprint emissions through the County operations in terms of the biggest resources come from electricity and fuel use. He noted that they are currently looking into the emissions caused by the Kekaha Landfill because if the County can use the methane because that in itself is huge project. In addition, Mr. Sato stated that the County is also asking its em to ees look at the plan and offer suggestions on where improvements Cost Control Commission Regular Meeting - Open Session November 14, 2013 Page 7 SUBJECT DISCUSSION ACTION are needed in terms of reducing the County's carbon footprint. Mr. Sullivan stated that the County's goal is to reduce overall energy consumption from 2012 levels by 30% by 2023 which equals to a reduction of 3% per year which is a very ambitious goal. Mr. Sato asked the Commission to refer to their copy of the matrix which will give them an overall view of each goal that he mentioned earlier. He explained that priority one means that significant progress can be achievable within three years; priority two is achievable within 3 -5 years; and priority three is achievable within 5 -10 years. Mr. Sullivan gave a brief synopsis energy saving goal strategy. He noted that at this point, it is not definitive whether they would be the ones driving the projects because more decisions needed to made and as mentioned by Mr. Sato it is a work in progress. He shared with the Commissioners that they met with the other departments to develop the plan which they tried to honor each idea by putting it into the working draft which gave everyone a chance to absorb the ideas and come up with a prioritization list. Mr. Sullivan stated that although Mr. Sato spends a good amount of his time on energy savings his has a much broader kuleana and is now, trying to get more departments to designate someone from their office to be a key energy person which is already showing returns in terms of engagement and identifying projects. He stated that the reality of it is that every department needs to contribute every year because OED cannot manage the procurement for every single energy project that is going to deliver results. But what they can do for the departments is to assist them in identifying potential energy saving projects and advocate for funding and in some cases get grant funding. Cost Control Commission Regular Meeting - Open Session November 14, 2013 Page 8 SUBJECT DISCUSSION ACTION Chair Sterker pointed out that the Cost Control Commission had a lot of discussion regarding lights being left on all night long at certain the County facilities. She asked whether something could be done to address the lighting problem. Mr. Sato stated that the parks personnel is aware of the problem but it is a matter of finding the right the solution and although they had some interaction, at the end of the day, it is their operation and they ate the ones to make the decisions. Mr. Sato stated that they have offered to assistance them in terms of providing technical support to help them find better lighting fixtures if needed. Commissioner Chaffin stated that as a former Planning Commissioner, he has brought up the issue on numerous occasions about the lights being left on for an extensive period to the point, where he pleaded with the Parks Department to find a solution but till this day nothing has been done. Mr. Sullivan stated that when the County is ready to install the street lights it is more than likely that they will be looking at a sophisticated lighting system which could be a good example for parks to look at. He stated that the currently the streetlights burns at least 12 hours a day when in reality you don't need a full blast streetlight on at three in the morning. He noted that another way the County could save by diming or turning off the lights at some point, but that takes some study and analysis. Chair Sterker noted that the problem with having a Green Team in each department is who is responsible to monitor them. Mr. Sato stated that the County's Green Team is made up of volunteer staff level employees who have a personal interest in becoming sustainable. The Green Team meets once a month to discuss ways on how to encourage each department to reduce paper waste by running double sided printing for all documents; establish a recycle bin for single sided printing so paper can be reused for Cost Control Commission Regular Meeting - Open Session November 14, 2013 Page 9 SUBJECT DISCUSSION ACTION notepads or reprinting. Chair Sterker asked if the County would consider the idea of establishing an Employee Incentive Program related to energy cost savings. Mr. Sato stated that the Green Team has discussed the possibility of having an office competition but have yet to solidify the plans. Mr. Sullivan stated that their goal is to track paper at the point of use and the Purchasing Department is not the metric to go to because a lot of times the departments will reach to the end of the fiscal and spend their money on paper because they have to spend it. The real issue is to keep track of how much paper each department is printing and as Mr. Sato had pointed out earlier, that in the future the County will move toward using a multifunctional printing device. Mr. Sato noted that because technology is improving so quickly and the County may find itself shifting towards efficiency. Mr. Sullivan gave the Commission a brief summary of the converting methane into diesel as the primary fuel for the Kauai Bus. He stated that although the initial research has been done they still have a long way to go as far as details that needs to be worked out. Commissioner Kaneshiro asked if a feasibility study was done to see what it would cost the County to finance the project. Mr. Sullivan stated that currently the County cannot buy natural gas as opposed to buying propane which is a significant savings because propane gas serves a different supply chains. He noted that although the County is in favor of the plan rather than fund the entire project itself the County is hoping to get a clearer picture of what it wants before it starts to look for potential partnerships. Mr. Sato stated that the OED is in the process of coordinating the use of two EV's and 1 Hybrid for use by OED, Solid Waste, and Purchasing. Cost Control Commission Regular Meeting - Open Session November 14, 2013 Page 10 SUBJECT DISCUSSION ACTION County Attorney and Real Property staff through the Outlook reservation system. Chair Sterker asked what does it cost to up keep the electrical vehicles to which Mr. Sato replied that to date only limited maintenance was required mostly due to manufacture recalls. Lastly, Mr. Sato stated that the County has established a virtual -re -use room to promote countywide sharing of new or slightly used office supplies, office furniture and office equipment. Announcements Next meeting— December 9, 2013 at 1:30 p.m. at the Mo'ikeha Building in the Liquor Conference Room. Adjournment Commissioner Chaffin moved to adjourn the meeting. Vice Chair Kaneshiro seconded the motion. Motion carried 5:0 The meeting adjourned at 3:03 p.m. 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 2014 Meeting Schedule County of Kauai Cost Control Commission 4444 Rice Street Suite 150 Lihu`e, Kauai 96766 All meetings will occur on the 2nd Monday of each month unless indicated. Meetings start at 1:30 p.m. in the Liquor Conference Room 3 *Schedule is subject to change January 13 February 10 March 10 April 14 May 12 June 9 July 14 August 11 September 8 October 13 *Thursday, November 13 December 12 *Denotes a holiday (Veteran's Day) schedule Approved on: COUNTY COUNCIL Jay Furfaro, Chair Tim Bynum Gary L. Hooser Ross Kagawa Mel Rapozo JoAnn A. Yukimura Council Services Division 4396 Rice Street, Suite 209 L-ihu`e, Kauai, Hawaii 96766 MEMORANDUM November 1, 2013 OFFICE OF THE COUNTY CLERK Ricky Watanabe, County Clerk Jade K. Fountain- Tanigawa, Deputy County Clerk TO: Sandra Sterker, Cost Control Commission Chair and Members of the Cost Control Commission VIA: Paula Morikami, Boards and Commissions Administrator FROM: JoAnn A. Yukimura, Councilmember VIA: Jay Furfaro, Council Chair Telephone (808) 241 -4188 Fax (808) 241 -6349 Email cokcouncil @kauai.gov RE: FINANCIAL IMPACT OF UNIT 12, STATE OF HAWAPI ORGANIZATION OF POLICE OFFICERS ( SHOPO) COLLECTIVE BARGAINING AGREEMENT I would like to request agenda time at the December 9, 2013 Cost Control Commission meeting, to discuss the cost implications of the Unit 12 Collective Bargaining Agreement for the State of Hawaii Organization of Police Officers ( SHOPO). Attached you will find written correspondence sent to my colleagues on the Council detailing some of the concerns that I have regarding the fiscal implications to the County of Kauai and the process by which compensation is established. Some of those fiscal consequences are not immediately recognizable, but will have far - reaching impacts on the County of Kaua`i's budget, and the services that the County provides— impacts that I do not believe SHOPO members intended or were even aware of. Thank you in advance for the opportunity to speak before you, and I ask that you please notify me if agenda time is granted. Should you have any questions, please feel free to contact me or Council Services Staff at 241 -4188. SS:lm Attachment cc: Nadine K. Nakamura, Managing Director AN EQUAL OPPORTUNITY EMPLOYER COUNTY COUNCIL Jay Furfaro, Chair Nadine K Nakamura, Vice Chair Tim Bynum Gary L. Hooser Ross Kagawa Mel Rapozo JoAnn A. Yukimura Council Services Division 4396 Rice Street, Suite 209 L1hu`e, Kauai, Hawaii 96766 September 19, 2013 Jay Furfaro, Council Chair and Members of the Kauai County Council 4396 Rice Street, Suite 209 1,1hu`e, Hawaii 96766 OFFICE OF THE COUNTY CLERK Ricky Watanabe, County Clerk Jade K Fountain- Tanigawa, Deputy County Clerk Telephone (808) 241 -4188 REM"'" (808) 241 -6349 uncil@kauai.gov 13 S'EP 19 P2 *38 THE - ,JU; ' + Y C} F:i3K V `x Dear Council Chair and Members of the Kauai County Council: RE: BILL NO. 2496 — A BILL FOR AN ORDINANCE APPROVING A COLLECTIVE BARGAINING AGREEMENT FOR BARGAINING UNIT 12 BETWEEN JULY 1, 2011 AND JUNE 30, 2017 Due to an emergency parent - teacher conference, I was an hour late to our last council meeting on September 11, 2013, and unable to participate in the discussion and vote on Bill No. 2496 relating to the 6 -year collective bargaining agreement with the State of Hawaii Organization of Police Officers (SHOPO). As you know, I was a silent vote in committee because while I truly wanted to support our police officers, I had deep concerns about the impact of the subject agreement on the viability of our county budget, on the salaries of other county workers and on the service needs and wellbeing of our community and county. I would like to request that my written statement be placed on the September 25, 2013 Council Meeting Agenda to be received for the record. I also want to include relevant information that was requested by Councilmember Rapozo and myself during the Committee Meeting on this subject, but was not available until after last week's Council Meeting. Respect and a0reciation for police officers: they deserve a raise Let me say at the outset, that the job of a police officer is difficult and strenuous, deserving of full compensation. I respect, admire and appreciate police officers and the service they provide to our community I want to also say that I was appalled to learn that the Employers' first position when negotiations began was to propose pay cuts, which, in this time of apparently improving economic conditions, did not seem justified at all! I definitely favor a pay raise. How much is the question. AN EQUAL O . O T[J rMOYER Jay Furfaro, Council Chair and Members of the Kauai County Council Re: Statement Relating to Bill No. 2496 September 19, 2013 Page 2 A need and duty to look at the common good While I deeply respect police officers and feel they deserve a pay raise, I also find the final arbitration results presented to the County Council to be extremely troubling in the context of the County Council's duty to look at the big picture and balance one union's needs and desires against the overall common good. At the committee meeting of September 4, 2013, Councilmember Rapozo requested of the Department of Finance that a 10 -year anal si of SHOPO's pay increases be calculated. I supported that request and also asked s that copies of the Employers' briefs before the Arbitration Panel be provided. Subsequently, I asked the Department of Finance for verification and explanation of a statement in the Employers' brief that a 10 -year span of SHOPO's proposal equated to 46 %. All Councilmembers have received a copy of the Employers' brief dated February 28, 2013 and the Department of Finance's answers to the auestions nosed Based on the arbitration award, the average pay for a position as a police officer four years from now, will be $65,000 +, at a total cost to the County (including benefits) of $114,000+. For a position as a police captain, the average pay four years from now will be $117,000+ (more than the Mayor of the County of Kauai presently makes) at a total compensation cost to the County of $192,000 +. See attached Exhibit B "Arbitration Impact Sample — Police (step movement in the 18t and 4th year).' How much? What is the common good? The impact of these pay increases are so wide- ranging they are difficult to fathom. Setting a precedent for other workers that the County cannot meet 1. The SHOPO raises are likely to set the standard for fire fighter pay increases and will probably be invoked by other collective bargaining units as well. What about the life guards who risk their lives for public safety? What about HGEA and UPW employees who may work at lesser risk, but whose work is no less critical to the essential services provided to the community. Again, we wa4t to pay all fairly, but can the county budget handle such percentage increases for all employees? The police and fire budgets already make up more than 50% of the county's budget, but this percentage could increase. C/ 2013 -3 18 Jay Furfaro, Council Chair and Members of the Kauai County Council Re: Statement Relating to Bill No. 2496 September 19, 2013 Page 3 2. Furthermore, what about the equipment, supplies, tools and other support necessary for employees to do their job and the program monies necessary to achieve the county's mission in providing parks, public transportation, housing, etc. 3. The figures above do not include overtime, which will increase the county's total compensation costs. 4. The pay increases will enlarge the county's pension liabilities. Remember, too, police officers can retire at age 55, while other government employees must work longer. 5. Most concerning is the ever widening disparity and inequity between uniformed officers (Fire and Police) and non - uniformed county employees (engineers, information technology specialists, attorneys, life guards, park caretakers, secretaries and other white collar and blue collar workers.) According to the Employers' brief, police and fire employees are the highest paid group of workers in the county. They continued to get pay raises while other bargaining units suffered furloughs and/or wage and salary reductions of up to 9.23 %. The average cost for uniformed officers is $99,804 ($79,272 salary) and for non - uniformed employees is $58,148 ($46,290 salary). The arbitrator's award has worsened the disparity. Impact on executive salaries With the salaries of police captains hitting $117,000+ (cost to county: $192,000 +) in four years, how high must the salaries of the Chief of Police or Deputy Chief of Police be to attract good talent from among the ranks? What will that do to other department head and executive level salaries? Limiting F ountv's ability to address critical needs now and in the future With salaries and compensation taking such a big chunk out of the county budget, how will we provide needed services and prepare our island community for the future? How will we address our community needs for expanded and well- maintained parks, public transportation, affordable housing, elderly needs, sewers and solid waste, complete streets, energy and food independence, pesticide regulations and environmental and health assessments? G 2013-318 Jay Furfaro, Council Chair and Members of the Kauai County Council Re: Statement Relating to Bill No. 2496 September 19, 2013 Page 4 Beyond the ability of taxnavers While raising property taxes may be justified in some cases, there are limits. The spiraling costs triggered by pay increases that are extremely out of balance could stretch taxpayer tolerance resulting in taxpayer revolts such as Proposition 13 in California, which resulted in layoffs and long term reductions in service. This is not what anybody wants for Kauai. Furthermore, we cannot and should not simply raises taxes on our visitor industry, small businesses and homes without any real incremental improvement in services. Unintended consequences I do not believe that SHOPO fully understood the implications of the arbitrator's award. In fact, according to the Employers' brief, SHOPO failed to take into account the compounding of both the wage and step increases and thus underestimated the cost and impact of their proposal by $65,343,347 statewide. Conclusion I hope I am wrong in my fears and assessment. If I am correct, however, it is urgent that we pay attention and learn from this decision - making process and find a better way of reaching more balanced and constructive results. Thank you for this opportunity to enter my comments for the record. cerely,' Gl� J A. YU Councilmember, Kauai County Council SS:mn Attachments cc: September 25, 2013 Council Meeting Agenda Ci 2013 -,3 I B -Romani K arvalbo, Jr. huwr .ary K. Neu DEP91RT . Off OF RNAIiiCE re"W-Of Kell % St" of Rowan -U" *OVVASUk42W, Lr='a ttamM 947$ 74 0M M-4M MX (80M. t s34 TO: JaMn A. Vukimure, Cbuncllmember VIA; Honorable JayFurfaro, C~oundJ ChW PROM: Steven A. Hunt, ai ectgr of Finance VIAL: Gory K. Hen, Managing Wreeto DATE., September 16, 2013 Exhibit A A. Hunt $shy A. aloha 904YOOMWOMMm 'SUBJECT, UNIT'12 COLLECTIVE BARGAINING EMPLOYERS' REPLY MEF.$TATEMENT The Feint fog year contract with SHHOPO Wended from FY08 through FY11 and mduded4wmss$ebmdbaeomof6Vo,6K,6%md6%4wingdWpdA Far FY12 and FY13 thw+e was no conftlt 04 *M1VfbM there waro no rams. U.gropQsed i to rover FY 14 through PYi7 were 60;. W4, &A anti 6%. Thus, o*wt t=IM span the simple cal on of the percentage increase was 469io, which was dawmwely by sag five amyl e ihcre . HoWeM. p� , ft ooh increase over ilea ten-yea spaais umv: sh no teb 5&4V4 vAd this figm stdi does not Wu& ft mtrvemcxft and .Snrcrejsesisthe standard of o mthwt peg►. li`F vompamwN *e arbitrator's. acbml av and for across the bead annual b=ww 0 2.6M 2.64%,3.02% andt l.99A for FY-14 du+ough FYI would show a simple page lie of 309% or a ccmpoundcd % of 42.76% ovet &e -10 -year pedal of de last two eoa>xacts..Againi, this does 40t include the gapaots of Mpmovexa ft nor the additlonal s WKW d of oomduct pay the wasWwat&& C 2013-318 COMMICOUNaL JsyPmSico, CBdr Nadioo S Napes, Vice Chair TIMByaa® Macy L Haoeer Bose xesm Md RW= JaAm A. Yatimiaa TO: FROM: VIA. RE: COW& 8erylca DtNdeo 4396 Rice St aK SdOe 209 Lack, Yam"i RX001"i 96966 September It 8018 Steven A Hunt, Director of Finance JoAnn A Yukimura, Cound Jay P*faso, Council Chair UNLIT 18 COLLECT" BIW STATEMENT Exhibit A OFF= OF Tt3 COUN'T'Y Cj,nX Jade B. Fommin- � WWwnbk Canty Csok tea. D*y Cavan► Cidk Tekpitoae RM ?41.4188 P®c (808)241 -6349 IEPLY In the EmployaW Reply Brief during the Impasse Arbitration for Bargaimng Unit 12, the County of ii;auaa made the following statement: "IU new proposal coupled with the previous contract between the County and Union wOuK if accepted by this Arbitration panel, equate to a qty -six Percent (489) salary increase over the ten (10) years covered by these two (3) contract Periods. This mmmse is just for base salary, and does not even talw[n] in to cnnsideratwn any step movements or other associated costs based on the base salaries for SHOPO members p Please confirm whether the statement made in the Brief is accurate and if passible, provide supporting documeatafaon to reinforce this statement. A response by September 17, 2013 is requested. Should you have sIW questions, please feel free to contact me or Council Services Staff at 241 -4188. SS-IC Co., Gary S. Hsu, Managing Director AN BOUAL oPPORTLaa Y l3beIDM G 2013 316 Exhibit B Arbitration impact Sample - Police (step movement in ist & 4th year) n �IfW �. .� }t. 't,'� �"?. ' }�71tL (• Y/ae..r/sry -.t.e sr 4% Step 4% .$ 3,834 '�:;'' Iy-jr•� c � ,`y,"' -"•'r 2.64% L75%/ L75% $ 2,632 ��t cif CsYyi. ...� lstY-&r $ WZ,3n $ 4,576 S 444 $ 8,656 $ so lQM 2.64% 1.75% /L75% Oil $ 2,701 .$ } -yam 2ndY4w S 2,496 S $ SA24 Il 51,578 $ 8 $ 500 168,822 3.02% 2.00%/240% 2,939 $ 3,172 $ 87,637 2.64% 1.75%/1.75% 4% Step 4% 2,017 3rd Year $ $ 7,904 $ '.14.782 $ 6 $ 500 S' 179,277 4% St8p4% $ 4;328 500 $ WAU 2.64% 1.75%/1.75% $ 2A71 4.19% 250%/ 3,40% $ 4,715 2nd Yea $ $ SUM 5,824 $ 291M $ 4thraar 500 $ 123AN HZ2M S SAW 59,295 $ 606 S 500 S 4th Year Ineeeesa Over Base Year $ $ 23,382 $ 5,824 $ 13,920 $ 412 $ 80 S 47,618 50 $ 7,40.714 16 Step 4% $ 22.3% 233396 30.796 6A% 19.0% 27.6% Cumuladvs Incense Over 4 Years $ $ 49,354 $ 16,640 $ 3308 $ 7A07 $ 320 $ 7AQ780 4th Year $ % 6.520 $ 12.9% 166.7% 18.2% 5A% 19.0% 36.7% �S+t'���°is i-, i 'f „' r �* ; ;!Y' `Y' a4e{�r``� d. '. '�:;'' Iy-jr•� c � ,`y,"' -"•'r ��t cif CsYyi. ...� J �' nit r ; '• ��S Oil ( } -yam Base S 73,476 2,496 S 34,924 $ 6A64 $ 420 $ 117AM 4% Step 4% $ 2,939 $ 6,484 S 420 $ 87,637 2.64% 1.75%/1.75% 4% Step 4% 2,017 1st Year $ 78092 $ 4,576 $ 57,747 $ SASS $ 500 $ WAU 2.64% 1.75%/1.75% $ 2A71 2nd Yea $ $ SUM 5,824 $ 291M $ 27 1 500 $ 123AN 3.02% 2.00%/2.00% $ jd3l $ 8,112 93% 2.64% 1.75 %/1.75% $ 1 Bed Year $ 82.984 $ 7,904 $ 42AN $ 4896 $ 50 $ 7,40.714 4% Step 4% $ 3,317 $ SA08 $ P,215 $ 4.19% 2.50%/3.00% $ 3,614 S 4 4S% 3.02% 2.00%72.00% $ 1,763 4th Year $ 89.866 $ 6.520 $ 45 $ 4896 500 $ 157.547 4th Year Increase Over Seas Year $ $ 14390 $ 5,824 $ 11,042 $ 412 S 80 $ 33,747 $ 500 % 223% 233.3% 31.6% 4% Stay 4% 6A% 19.096 28.6% C uewladve incense Over 4 Years $ $ 37,831 $ 16,640 $ 26,379 $ 1,407 $ 320 $ 82,578 % 12.9% 166.7% 189% SA% 19.0% 175% ti 4 i� Asaumptloas: Comparison on Base salary, does not h chicle various Overtime,, Premium pay, Olfferentlats, etc. Step movement Is provhled In the Lit year & 4t1 year, assumed at eppres. 4% each year ERS escalates 23'114 24% 25%,25% & OPEB remains level overthe 4 year contract Medical Derft4 Drus & Vision 0 2 party coverain 2nd - 4th year Dental, DruL Vision amplcrlw Portion unchanged G 2-013-318 CsYyi. ...� '• ��S A 'iT •' . �:. ,' �'' J:li< } -yam V �. f ,�" Base S 53,268 $ 2,060 $ 251385 $ 6,484 S 420 $ 87,637 4% Step 4% $ 2,131 2.64% L75%/1.75% $ 1,463 Lt Yea $ SUM $ 4,11111 $ 27 1 $ 6AS6 500 $ 95.749 $ 8,112 93% 2.64% 1.75 %/1.75% $ 1 2nd Year $ 5 %562 $ SA08 $ P,215 $ 500 $ '100 S 4 4S% 3.02% 2.00%72.00% $ 1,763 19m year, 80 $ 7 1 $ 6 $ 500 $ "San $ 5 59% 4% Stay 4% $ 2g09 4.19% 250% /3.00% $ 2,620 0th Year 65,150 S 7,904 $ 33 6,896 $ S00 $ 314 S 7 75% 4th Yea Inaasse Ova Base Yea $ $ 11,882 $ 5,824 $ SA34 $ 412 $ 80 $ 26,632 % 22.3% 280.0% 332% 6A% 19.096 30A% Cumulative uletive Incerme Ova4 Years $ $ 27,426 $ 16,640 $ 20,328 $ 1,407 S 320 $ 66,722 % 129% 200.0% 20.0% SA% 19.0% 18.9% Asaumptloas: Comparison on Base salary, does not h chicle various Overtime,, Premium pay, Olfferentlats, etc. Step movement Is provhled In the Lit year & 4t1 year, assumed at eppres. 4% each year ERS escalates 23'114 24% 25%,25% & OPEB remains level overthe 4 year contract Medical Derft4 Drus & Vision 0 2 party coverain 2nd - 4th year Dental, DruL Vision amplcrlw Portion unchanged G 2-013-318