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HomeMy WebLinkAbout090918 CCC Minutes approved1m(bd)(tt)COUNTY OF KAUA'I Minutes of Meeting OPEN SESSION Board /Committee: I COST CONTROL COMMISSION Meeting Date September 9, 2013 Location Mo'ikeha Building — Liquor Conference Room 3 Start of Meeting: 1:30 p.m. End of Meeting: 2:56 p.m. Present Chair Sandi Sterker; Vice -Chair Arryl Kaneshiro; Members: Joanne Nakashima and Glen Takenouchi Also present: Deputy County Attorney Jodi Sayegusa; Boards & Commissions Office Staff. Support Clerk Mercedes Youn; Administrator Paula Morikami; Administrative Aide Teresa Tamura; County Attorney Alfred Castillo, Jr., Council Chair Jay Furfaro Excused Commissioners Dirk Apao, Lawrence Chaffin Jr., 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 July 22, 2013 Commissioner Takenouchi moved to approve Minutes the meeting minutes as circulated. Vice Chair Kaneshiro seconded the motion. Motion carried 4:0 CCC 2013 -19 Discuss and clarify the anticipated cost savings analysis for a proposed two - member litigation team for the County of Kaua'i Chair Sterker stated that the information that was provided by County Attorney Castillo reflects the current attorneys and litigation support and support divisions for Maui and Big Island counties. She voiced her concern that Kaua'i is the only County in the State that does not have a litigation team and that the budget allocated for special counsel for the new fiscal year has already been either expended or encumbered. Attorney Castillo entered the meeting at 1:33 p.m. Cost Control Commission Regular meeting - Open Session September 9, 2013 Page 2 SUBJECT DISCUSSION ACTION Attorney Castillo made a presentation on information provided to the Commissioners relating to the cost for a litigation team that includes two attorneys and one legal clerk. The information included data showing budget comparisons for fiscal year 2009 through 2013, a table of organization for the County of Kaua'i Office of the Prosecuting Attorney and County of Hawaii Office of the County Attorney. Attorney Castillo shared with the Commission that he was surprised to learn that the County of Maui has sixteen (16) deputy Corporate Counsels of which eight (8) are assigned to the litigation division and the other eight (8) to the counseling and drafting division. He further stated that the County of Hawaii has fourteen (14) deputy Corporate Counsels that does not include a First Deputy, and their litigation division consists of a deputy Corporation Counsel Section Chief and six (6) attorneys. The counseling & drafting division consists of a Deputy Corporation Counsel Section Chief and five (5) attorneys. Attorney Castillo stated that with respect to the population on the neighbor islands he felt that the amount of departments that they serve is equal to Kaua'i, which includes the Office of Boards and Commissions. He stated that each of his deputies are assigned to a specific department and that deputies Jennifer Winn and Mauna Kea Trask carry the burden of doing both litigation and counseling and drafting, which he and his counterparts all agree can be overwhelming. Attorney Castillo referred to the County of Hawaii. Attorney's organization table which reflects a separation of their litigation team and counseling and drafting division, which he felt would be an ideal structure for the County Attorney's Office. Cost Control Commission Regular meeting - Open Session September 9, 2013 Page 3 SUBJECT DISCUSSION ACTION He shared with the Commission that historically the Office of the County Attorney and the Office of the Prosecuting Attorney carried the same amount of attorneys because of the population growth on Kaua'i. He stated no disrespect to the Prosecuting Attorney's Office but the amount of work they do is contained in the fourteen volumes of the Hawaii Revised Statutes compared to the Office of the County Attorney who must have greater knowledge in terms of jurisprudence of the law. Attorney Castillo shared with the Commission that when he became the County Attorney in 2009 a question was posed to him as to how the Office of the County Attorney was going to handle its cases without going out to seek special counsel. He stated that it was determined that the Office of the County Attorney was not going to seek outside special counsel but instead, handle each case in- house. Attorney Castillo referred to the information on the budget comparisons for fiscal year 2009 through 2013. He noted that he wanted to focus mainly on fiscal year 2011 because the information corresponds with his letter dated August 29, 2013 that was provided to the Commission. He stated that in 2011the OCA saved the County at least $500,776 by doing cases in- house. He explained that the budget allocated for special counsel was set at $914,885 of which $414,885 went towards expenditures and encumbrances. He pointed out that none of the cases should have been attributable to special counsel if the County had a litigation team in place because he felt that the cases could have been done in- house. He shared with the Commission that when doing research on the cost analysis, he found that in 2011 the actual paid out amounted to $108,156 which brings to the question of a $305,953 balance. He explained that the encumbered balance of $305,953 would be difficult for the accountants to Cost Control Commission Regular meeting - Open Session September 9, 2013 Page 4 SUBJECT DISCUSSION ACTION track because of the way the County does its accounting. He stated if he had a clearer picture of the actual expenditures and encumbrances he could also include the name of the firm and the amount paid for each case, but unfortunately he is unable to provide such information. He pointed out that in FY 2011 the County had a huge savings over and above the amount of the $350,000 to $375,000 that he is asking for to create a litigation team in his office. He stated that in FY 2012 -13 the budget allocated for special counsel was $1 million of which $685,210 was consumed, and $70,000 of funds could have been saved because the case that it was used for was a new case that could have been done in- house. He mentioned that although $1million was allocated for special counsel he felt that the County could have saved $573,427 by doing the cases in- house. Attorney Castillo shared with the Commission that his office is working on a condemnation but had to seek special counsel because of its complexity. He explained that normally on a smaller scale condemnation in itself is not hard to do because the issues are straight forward, but when it comes to the litigation in determining the value of a property that's when having an attorney with experience is highly needed. He stated that by assigning deputies Jennifer Winn and Mauna Kea Trask to these types of cases there would be no need to seek special counsel because his office has developed enough knowledge, skills and expertise, and is capable of doing the entire condemnation case. Chair Sterker inquired if he would need to find replacements for the counseling and drafting division. Attorney Castillo stated that he would need to find replacements however, the trouble he is faced with is finding the attorneys with the same type of experience to fill in should Attorneys Winn and Trask be called upon to do a litigation or a tax appeal on Oahu. He point ed out that in reviewing the other jurisdiction's organizational Cost Control Commission Regular meeting - Open Session September 9, 2013 Page 5 SUBJECT DISCUSSION ACTION structure it showed that they have sufficient coverage when someone has to be out of the office to do litigation or a tax appeal case. Chair Sterker asked if there were other areas in his organization that he felt attorneys should specialize in certain areas of the law. Attorney Castillo stated that finding an experienced attorney took a long time, but fortunately he was able find and hire an attorney with litigation, real property law, and federal civil rights experience. He stated that the budget allocated for the new fiscal year is set at $534,268 but two months into the fiscal year, and the entire budget is already expended or encumbered. He voiced his concerned that if his office were to request for a money bill they were told that they would have to wait until the end of the year when the CAFR comes through. He indicated that the Department of Finance expressed their willingness to help monitor the situation as best as they can, but the real concern lies in the future because of the possibility of pending lawsuits that might come from the GMO issue and the recent shooting that involved four police officers. Attorney Castillo stated that with a litigation team his office would have the ability to defend in- house, and if and when the Cost Control Commission decides to make a recommendation to the Mayor he has the commitment from the Department of Finance to provide the exact figures. Chair Sterker asked if it was difficult for him to find qualified attorneys who would want to come to Kaua'i with the amount the County is paying them. Attorney Castillo answered yes; there are attorneys from the mainland who want to come to Hawaii, but he would prefer to hire experienced attorneys because he finds it hard to train attorneys in the work that they do. Chair Sterker thanked Attorney Castillo for providing the Commission with a better understanding that having a two - member litigation team in the Office Cost Control Commission Regular meeting - Open Session September 9, 2013 Page 6 SUBJECT DISCUSSION ACTION of the County Attorney can save the County money. At 2:12 p.m. Attorney Castillo left the meeting. Chair Sterker opened the floor for discussion to propose a two- member litigation team and one legal clerk in the Office of the County Attorney. Commissioner Nakashima commented that she thought it was great that the special counsel have been training the County's attorneys in litigation where they have gained enough knowledge and skills to do litigation cases on their own. Vice Chair Kaneshiro voiced his concern that the attorney's office is already limited with experienced attorneys that if they lose another attorney their office would lose a wealth of expertise and experience. Chair Sterker stated that although she understands that the County has been pushing back on its personnel it has to realize what is actually helping the County. She asked for a motion that the Commission make a recommendation to the Mayor to establish a two- member litigation team and one legal clerk in the County Attorney's Office. Chair Sterker called for a motion to accept the Communication dated Vice Chair Kaneshiro moved to recommend to August 29, 2013, including the attachments from County Attorney Alfred the Administration to establish a two- member Castillo, Jr. regarding information on the cost analysis for a two- member litigation team and one legal clerk in the office litigation team and one legal clerk for the record. of the County Attorney. Commissioner Takenouchi seconded the motion. Cost Control Commission Regular meeting - Open Session September 9, 2013 Page 7 SUBJECT DISCUSSION ACTION Vice Chair Kaneshiro pointed out that he recalls at a previous meeting the Commissioner Nakashima moved to accept. Administration had expressed concerns about the cost analysis not being Commissioner Takenouchi seconded the clear enough, but to date they have not approached the Commission with motion. their concerns. Chair Sterker stated that at this point she felt that the Motion carried 4:0 Commission has the answers to the Administrations concerns. Commissioner Takenouchi asked whether a portion of the budget would be used toward finding the replacements for two deputies who will be assigned to the litigation team. For clarification, Deputy County Attorney Sayegusa stated that the item on the agenda is to discuss the possibility of establishing a two- member litigation team and one legal clerk in the County Attorney's office, and in essence find two replacements to fill in the vacancies created by the two attorneys who will be assigned to the litigation team. With no further discussion, Chair Sterker called for the vote. Motion carried 4:0 CCC 2013 -20 Presentation by Council Chair Jay Furfaro on the County of Kaua'i Energy Sustainability Plan Council Chair Furfaro shared with the Commission his concerns regarding the forty (40) recommendations that were mentioned in the report from the Office of the County Auditor Report No.l 1-01, April 2011. He stated that he had the opportunity to review the Cost Control Commission's recommendations from a previous meeting, which indicated that the Cost Control Commission made only six (6) recommendations, but yet at the same time the Office of the County Auditor implied that the Commission made over forty (40) recommendations. Cost Control Commission Regular meeting - Open Session September 9, 2013 Page 8 SUBJECT DISCUSSION ACTION He pointed out that in reviewing the Commission's minutes he did not find any discussion regarding the forty (40) recommendations, and that he was confused when the previous Commission approved their findings. He stated that the forty (40) recommendations were made by another department prior to the creation of the Office of the County Auditor by the Kauai County Charter. He informed the Commission that the forty (40) recommendations in the County Auditor's Report dated April 2011 came from the energy use report that was initiated in 2007 by former Mayor Bryan Baptiste and charged by former Special Assistant Lani Nakazawa. He reiterated that during that period there was no county auditor, and that the energy use report that was done by Lani Nakazawa and adopted by Mayor Baptiste was never adopted by the County Council. Council Chair Furfaro shared with the Commission that the Kaua'i Energy Sustainability Plan (on file) was put together by the Energy Plan Advisory Committee, or EPAC, which is a group of government and community members that convened with the assistance of the Office of Economic Development. He stated that both he and Councilmember Yukimura are members of the committee who helped to secure the funding for the consultant. Council Chair Furfaro referred to an informational chart (on file) that reflects the County's goals on how to reduce overall use of electricity by 30% by 2023 ; reduce the County's fossil fuel transportation energy use by 50% by 2023; use of green energy in place of energy derived from fossil fuels; institute measures to better utilize water resources; reduce paper waste /disposables and reuse whenever possible; purchase green products; utilize green building practices and materials for new County facilities; monitor and prepare for impacts of climate change and sea level rise on County facilities and operations. Cost Control Commission Regular meeting - Open Session September 9, 2013 Page 9 SUBJECT DISCUSSION ACTION Council Chair Furfaro encouraged the Commission to invite Glenn Sato, Ben Sullivan or George Costa of the Office of Economic Development to one of its meetings to provide periodic updates as the County continues to move forward with its sustainability plan. CCC 2013 -21 Discussion on the vacancies in the Kaua'i Police Department versus overtime. Chair Sterker stated that although she appreciates that the Kaua'i Police Department is making an effort to reduce overtime by establishing directives for the expenditure of overtime funds, she would like to request financial information regarding what percentage of their overtime expenses were paid out during a five year span as well as a list of vacant positions in the department. Ms. Morikami suggested that the information should also include a breakdown of fixed holidays versus overtime. CCC 2013 -22 Discussion on the vacancies in the Department of Public Works versus overtime. Chair Sterker suggested that the Commission defer this matter for continued discussion at its next meeting. She requested that the Commission be provided with financial information regarding what percentage of their overtime expenses was paid out during a three year span as well as a list of vacant positions in the Public Works Department. Announcements Next meeting — October 14, 2013, at 1:30 p.m. at the Mo'ikeha Building, Liquor Conference Room 3. Vice Chair Kaneshiro asked that the Commission to invite Budget and Purchasing Director Ernest Barreira to its next meeting to do a presentation on the budget for FY 2013 -14. Cost Control Commission Regular meeting - Open Session September 9, 2013 Page 10 SUBJECT DISCUSSION ACTION Adjournment Chair Sterker called for the motion to adjourn the meeting. Commissioner Takenouchi moved to adjourn. Commissioner Nakashima seconded the motion. Motion carried 4:0 At 2:56 p.m. the meeting adjourned. Submitted by: Mercedes Youn, Staff Support Clerk ( X) Approved as circulated on October 14, 2013 ( ) Approved as amended. See minutes of meeting. Reviewed and Approved by: Sandi Sterker, Chair