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HomeMy WebLinkAbout061013 CCC approved minutes_1m(CZ) (2)(tt)COUNTY OF KAUAI Minutes of Meeting OPEN SESSION Board /Committee: I COST CONTROL COMMISSION Meeting Date I June 10, 2013 Location Mo'ikeha Building — Meeting Room 2A/B Start of Meeting: 1:30 p.m. End of Meeting: 2:23 p.m. Present Chair Sandi Sterker; Vice -Chair Arryl Kaneshiro; Members: Dirk Apao, Lawrence Chaffin, Jr., Joanne Nakashima; and Glen Takenouchi Also present: First Deputy County Attorney Amy Esaki; Board & Commissions Office Staff: Support Clerk Mercedes Youn; Administrator Paula Morikami; Administrative Aide Teresa Tamura; and County Attorney Alfred Castillo, Jr. (entered the meeting at 1:35 p.m.; left at 1:52 p.m.) Excused Commissioner 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 May 13. 2013 Commissioner Takenouchi moved to approve Minutes the meeting minutes as circulated. Commissioner Apao seconded the motion. Commissioner Chaffin informed the Commission that he was not at the last meeting so he would abstain from voting. Motion carried 5:1 (abstain - Chaffin) Communications CCC 2013 -15 Copy of a communication dated May 13, 2013 from Chair Sandi Sterker to Mayor Bernard P. Carvalho, Jr. as it relates to a recommendation to hire a two- member Litigation Team for the County Attorney's office for fiscal year 2014 -15. Chair Sterker called for the motion to receive item CCC 2013 -15. Commissioner Chaffin moved to receive item CCC 2013 -15. Commissioner Nakashima seconded the motion. Motion carried 6:0 (a) Memorandum dated May 29, 2013 from Mayor Bernard P. Carvalho, Jr. to County Attorney Alfred Castillo, Jr., requesting Cost Control Commission Regular Meeting - Open Session June 10, 2013 Page 2 SUBJECT DISCUSSION ACTION that the County Attorney attend a meeting of the Cost Control Commission on June 10, 2013 to discuss and clarify the anticipated cost savings for the County once a two - member Litigation Team is in place. Chair Sterker called for the motion to accept item CCC 2013 -15 (a) Commissioner Takenouchi moved to accept item CCC 2012 -15 (a). Commissioner Nakashima seconded the motion. Motion carried 6:0 Chair Sterker explained to the Commission that Attorney Castillo will be addressing what appears to be some confusion on the actual cost savings based on the numbers that were provided in his memo dated May 6, 2013 to the Cost Control Commission. Attorney Castillo stated that he received a memorandum from the Mayor requesting that he appear before the Commission to clarify the anticipated cost savings to the county once a litigation team is in place. He explained to the Commission that he found it difficult to clarify the numbers and that he met with the Administration and the County Council to discuss how to visualize the benefits and the actual cost savings for a two- member litigation team. He indicated that the Administration expressed their concerns that during the down time there might not be the need for a litigation team. He stated that he had expressed to the Administration his concerns of not being able to meet the expectations of the County Attorney's office during the period when litigation is at its peak and not being able to defend the County as vigorously and professionally as it should. Cost Control Commission Regular Meeting - Open Session June 10, 2013 Page 3 SUBJECT DISCUSSION ACTION Attorney Castillo said that he can give only two case examples that the County Attorney's office is currently working on. The first case relates to a police brutality case in which he participated in and that the County Attorney's office did the entire litigation. He indicated that he represented the County and deputy county attorneys Jennifer Winn and Mauna Kea Trask represented each police officer. He stated that the County Attorney's office has just completed the cap arbitration which did not cost the County additional money and that the arbitrator ruled in the County's favor in which no award was given. Attorney Castillo stated that although the County did not have to pay for special counsel for this case, had the County gone out for special counsel and if through the discovery process and the depositions had just one county attorney assigned and two special counsel on the case, one could say, at least on both sides, in preparing for the case, the County would have probably spent at least $30,000 each. Attorney Castillo shared with the Commission that the County Attorney's office is working on another case in which three special counsel were hired to work the case. He stated that the anticipated cost to do the litigation for that case is $750,000; and that's without looking at the additional $350,000 which the County will be paying at the end. However, if the case goes to trial, though he believes it should not, the County could stand to lose more. Attorney Castillo stated that he is trying to compare apples to apples and at the same time is having difficulty in doing so and although he acknowledges the fact there will be cases that take priority he really does know the meaning of down time. He stated that he does not know how he can help the Commission with the numbers because unlike the Office of the Prosecutor where they keep statistics, the County Attorney's office does not. He stated that the Administration and Council are concerned Cost Control Commission Regular Meeting - Open Session June 10, 2013 Page 4 SUBJECT DISCUSSION ACTION about special counsel costs and that he was aware about a movement or an idea with some of the Council members that instead of using the money they got for next year's budget, Council would allow them to use the $150,000 to get another attorney. However, he informed both the Administration and Council to be patient and wait to see what the Cost Control Commission is going to recommend mainly because he wanted to go through the correct process. Chair Sterker voiced her concern that the recommendation would probably bring a lot of questions from the Council as to what grounds the Commission feels the recommendation is warranted in which the Commission would reply that it would be necessary because from the looks of things the future could bring unanticipated litigations. Attorney Castillo stated that he can also foresee that later down the road that there would be a lot more litigation and he offered to provide the Commission with a cost savings analysis and interpretation of numerical data that would support the need for a two- member litigation team in the County Attorney's office. He indicated that he would come back in July to present his report. Chair Sterker asked if he could include a percentage of cases in his report to help justify the recommendation even more. Attorney Castillo stated that he understands the whole process and what it entails and providing sufficient data will definitely help to justify the Commission's recommendation. Commissioner Kaneshiro asked whether the positions were included in last year's budget. Attorney Castillo said no. Attorney Esaki explained that during the budget process they were told by the Administration to cut their budget by a certain amount of dollars and because of that they could not include any new positions. Cost Control Commission Regular Meeting - Open Session June 10, 2013 Page 5 SUBJECT DISCUSSION ACTION Attorney Castillo added that in FY 2010 and 2011 the County Attorney's office cut its budget by 12 %. He reiterated how difficult it was for him to provide a cost savings analysis. Chair Sterker stated that the cost savings analysis would provide a wealth of information which would make it easier for the Commission to justify to the Council why it supports a two- member litigation team in the County Attorney's office. Attorney Castillo stated that the need for a two- member litigation team is necessary because at this point the County Attorney's office has used up all of its special counsel funds and by having a two - member litigation team it would have saved the County a lot more money. Chair Sterker stated that is the type of information that would be very helpful in terms of justifying the need for a two- member litigation team because the goal is to save the County money. Commissioner Chaffin asked if the County Attorney's office has the ability to represent both sides of the conflict. Attorney Castillo explained that there is a method by the way the Office of Disciplinary Council who has provided his office with a recipe on how to avoid conflicts and how to build a firewall. Commissioner Chaffin asked whether his office keeps a record on the amount of time spent on each case to use as a comparison to another case represented by an outside attorney. Attorney Castillo stated that his office does not keep statistics on the amount of time each attorney spends on a case. Commissioner Chaffin said that it would seem to him that it would be an ideal way to justify to the County that it would be less expensive to utilize its own attorneys than to hire an outside attorney. Attorney Castillo stated that he agrees that a cost savings analysis is long overdue and maybe it's about time that he tackles it. He added that he had the similar questions asked by the County Council who have expressed their willingness to help. Chair Sterker stated that the Commission would Cost Control Commission Regular Meeting - Open Session June 10, 2013 Page 6 SUBJECT DISCUSSION ACTION like to have a complete cost savings analysis done before it can send the recommendation to the Mayor for his consideration and comments before he transmits the recommendation to the County Council. Attorney Castillo stated that whether or not the County Attorneys are assigned to a case, part of the equation as to how much it would cost to defend the case really would not come into play because the trial team would absorb the entire cost. Which is one of reasons he made the comparison and contrast that it would cost the County at least $750,000 to defend which to him is going backwards. Attorney Castillo stated that the County is finding that it is doing a lot more litigations including federal litigations. Chair Sterker stated that this would be a good time to get the numbers together in which Attorney Castillo agreed. Attorney Castillo left the meeting at 1:52 p.m. CCC 2013 -17 Communication dated Mgy 23 2013 from Council Chair Jay urfaro to Chair Sandi Sterker and Members of the Cost Control Commission requesting foragenda time to discuss a report from the Department of Finance relating to the Quarterly Statement of Revenues and Expenditures through the period ending March 31 2013. Chair Sterker called for a motion to receive item CCC 2013 -17. Commissioner Takenouchi moved to receive. Commissioner Chaffin seconded the motion. Motion carried 6:0 Chair Sterker suggested that the Commission defer this matter for continued discussion in July. She indicated that a communication dated Commissioner Chaffin moved to defer the June 3, 2013 from Council Chair Furfaro to Chair Sandi Sterker, was communication dated June 3, 2013 from Council received at the Office Boards and Commissions on June 4, 2013 requesting Chair Furfaro to the July 8th meeting. for a deferral of item CCC 2013 -17 to the July 81h meeting. Commissioner Takenouchi seconded the motion. Motion carried 6:0 Cost Control Commission Regular Meeting - Open Session June 10, 2013 Page 7 SUBJECT DISCUSSION ACTION Chair Sterker announced that she would not be available on the day of the next scheduled meeting and designated Vice Chair Kaneshiro to chair the meeting. Commissioner Apao said he also would be unavailable on that day as well. Chair Sterker pointed out that the July 8t11 meeting might be a long one because Purchasing and Budget Director Ernest Barreira is also scheduled to appear to give an update on the FY 2013 -14 Budget. Commissioner Kaneshiro questioned whether it makes sense to have Council Chair Furfaro and Mr. Barreira appear on the same day. Commissioner Takenouchi asked which item is considered a higher priority. Chair Sterker said that both are the same except its coming from two different points of view which might make it difficult. Ms. Morikami suggested that the Commission have the Council Chair at its July 8th meeting and in the audience have Ernest Barreira or Finance Director Steve Hunt available to answer any questions that perhaps Council Chair Furfaro might not be able to answer. Chair Sterker asked if it would be better to try to set the next meeting for July 22nd when she would be available and inform Council Chair Furfaro that a new meeting date has been set and if he is not available on that date then he can come on August 12th which is the next regular scheduled meeting. Commissioner Nakashima announced that she would not be available on July 22nd. Chair Sterker requested that the meeting on July 22"d start at 1:00 p.m. Cost Control Commission Regular Meeting - Open Session June 10, 2013 Page 8 SUBJECT DISCUSSION ACTION Business CCC 2013 -14 Discussion and possible decision - making on a master plan of the Count pace planning that includes the old Big Save building, Chair Sterker explained that at its April meeting, the Commission received testimony from Mr. Rich Gage, President of the Kauai Historical Society, regarding a proposal to be made to the Mayor and the County Council that KHS is willing to take the responsibility of archiving and providing storage for the old county records in exchange for space in the old Big Save building. Chair Sterker stated that in the discussion Mr. Gage offered to provide a copy of a draft plan that was provided to the Commission earlier. Chair Sterker stated that although she supports KHS endeavors in wanting to relocate to the old Big Save building she felt that the County priorities should come first and it would be rather silly for the county not to utilize that space for its own needs. She also acknowledged that other outside organizations have also expressed their needs to use that space however, the space should be retained within the county. Commissioner Kaneshiro shared with the Commission that he had the opportunity to see a portion of the digital copy of the 2010 County of Kauai Comprehensive Space Plan and Needs Assessment. He stated that the CD provided information on the needs and standards for each department. Commissioner Chaffin commented that computers have become more prevalent within the county and far less space is required for secretaries and storage space and it was not necessary to say that everything is expanding. Chair Sterker stated that she agreed however, she felt that the county is in need of storage space based on the previous discussion with the Space Planner and that it would make sense for the county to utilize the old Big Save building instead of going elsewhere for storage. Chair Cost Control Commission Regular Meeting - Open Session June 10, 2013 Page 9 SUBJECT DISCUSSION ACTION Sterker asked whether it would be appropriate at this time for the Commission to make a recommendation on this matter. Commissioner Kaneshiro asked who ultimately determines the use of the old Big Save building. Chair Sterker suggested that the Commission send a letter to KHS acknowledging that the Commission has received their proposed map layout for the old Big Save space but after discussion and deliberation the Commission believes that the county has substantial needs for this space and therefore cannot recommend it for their use. Staff acknowledged the request and will draft the letter for the Chair's approval before sending it to the Kauai Historical Society. Announcements Next meeting will be on Monday, July 22, 2013 at 1:00 p.m. at the Mo'ikeha Building in Meeting Room 2A/2B. Adjournment Commissioner Chaffin moved to adjourn the meeting at 2:23 p.m. Commissioner Takenouchi seconded the motion. Motion carried 6:0 Submitted by: Mercedes Youn, Staff Support Clerk ( X) Approved as circulated on July 22, 2013. ( ) Approved as amended. See minutes of meeting. Reviewed and Approved by: Sandi Sterker, Chair