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HomeMy WebLinkAbout01-13-14 CCC Minutes_Approved1m(cz)COUNTY OF KAUAI Minutes of Meeting OPEN SESSION Board /Committee: COST CONTROL COMMISSION Meeting Date January 13, 2014 Location Mo'ikeha Building, Liquor Conference Room 3 Start of Meeting: 1:33 p.m. End of Meeting: 2:36 p.m. Present Chair Arryl Kaneshiro; Vice Chair Laurie Yoshida; Members: Dirk Apao, Lawrence Chaffin Jr., Sandi Sterker and Glen Takenouchi Also present: Deputy County Attorney Jennifer Winn; Boards & Commissions Office Staff. Support Clerk Mercedes Youn; Administrator Paula Morikami; Administrative Aide Teresa Tamura Public testimony: Lonnie Sykos Excused Joanne Nakashima Absent SUBJECT DISCUSSION ACTION Call To Order Chair Kaneshiro called the meeting to order at 1:33 pm. Approval of Regular Open Session Minutes of December 9, 2013. Minutes Commissioner Chaffin pointed out that it was his understanding that Chair Sterker meant to say that her point was NOT to raise taxes. Commissioner Sterker clarified that by raising taxes it would eliminate certain exemptions and stated that the majority of the nonprofit organizations use fire and police services. Commissioner Chaffin said that at the last meeting, he commented that the Commission should supply the Police Department with its own dictation system, and although it was just a comment he felt that the Commission agreed that it was meant to be a recommendation and not just a comment. Commissioner Takenouchi said that no motion was made to that effect. Vice Chair Yoshida stated that all formal matters should come with a request to the Chair; otherwise the Commission would view it as just a comment. Commissioner Chaffin stated that his question really revolves around whether making a comment would be enough to place it on next agenda, or is he just Cost Control Commission Regular Meeting - Open Session January 13, 2014 Page 2 SUBJECT DISCUSSION ACTION spinning his wheels. Vice Chair Yoshida stated that Commissioner Chaffin would be spinning his wheels because the matter should be addressed to the Chair for placement on the agenda for further discussion. Commissioner Chaffin questioned if it would be appropriate at this time to ask the Commission if his comments about a dictation system in the Police Department can be placed on next month's agenda. Chair Kaneshiro noted that if Commissioner Chaffin wants the matter placed on the next agenda he would have no problem with it. Chair Kaneshiro asked if there were any more changes to the minutes if not he would like to entertain a motion to approve the meeting minutes, as amended. Commissioner Chaffin moved to approve the meeting minutes, as amended. Commissioner Takenouchi seconded the motion. Motion carried 6:0 CCC 2014 -01 Discussion and decision - making on new business pursuant to the Kauai County Charter, Article XXVII, Section 28.04. Chair Kaneshiro stated that the goal of the Cost Control Commission is to reduce the cost of county government while maintaining a reasonable level of public services. In addition, the Commission shall review personnel costs, real property taxes, travel budgets, contract procedures; review with the aim of eliminating programs and services available or more efficiently supplied by other governments or organizations; eliminate or consolidate overlapping or duplicate programs and services, and scrutinize for reduction in any county operation. Chair Kaneshiro opened the floor for public testimony. Cost Control Commission Regular Meeting - Open Session January 13, 2014 Page 3 SUBJECT DISCUSSION ACTION Lonnie Sykos stated that as a matter of procedure it would be beneficial for the public to listen to the discussion before giving a response because he felt all testimony would be based on the Commission's discussion relative to the agenda item. He asked the Commission to consider his request to change its procedural rules. Mr. Sykos testified that like many people in the public he has concerns about the finances of the County and the rate of growth in the government operations. He said that the Commission should be aware that if the County has a 7% growth rate it would double the County's expenses in ten (10) years. He asked that the Commission pose his question to the Mayor and the Council as to the rate of growth for the County based on the economy outside of government spending. He said that the County is basing its future ability to collect taxes on what it perceives the federal government is doing, which includes the State's economy, and is an area in which the County has no control on how the money is spent. He stated that he also wanted to address how the County informs the public about rate of growth based on its current hiring and wage projections, including the cost of government, and how much taxes must be increased. In regard to the Human Resources Department, Mr. Sykos stated the County has failed to reform and modernize the County's human resource functions, which he believes is the cause of why the County had to spend millions of dollars on settlements and defending the County labor claims, and its lack of oversight pertaining to sick leave and vacation time. Chair Kaneshiro stated that the discussion should be based on the items listed in Section 28.04 of the Kauai County Charter for 2014. Cost Control Commission Regular Meeting - Open Session January 13, 2014 Page 4 SUBJECT DISCUSSION ACTION Deputy County Attorney Winn thanked the Commission for giving her the opportunity to address their questions noting that she could not stay for the entire the meeting, but would be happy to answer any legal questions posed by the Commission. Commissioner Chaffin stated that at the last meeting, a comment was made by Commissioner Kaneshiro that the collective bargaining process is out of the hands of the Commission to which Councilmember Yukimura commented that the Cost Control Commission could make a recommendation through the Mayor for introduction to the County Council. He asked, based on Ms. Yukimura's comment, what else the Commission can do that is within its purview. Deputy County Attorney Winn stated that she could not answer his question because she does not know what Councilmember Yukimura meant by her statement. As to what the Cost Control Commission can do relative to the collective bargaining process, the Commission cannot get involved with what goes into the contract; it can only make suggestions to the Mayor as to what changes the Commission would like to see. She added that if a particular matter within the contract raises a concern she cannot advise the Commission at this time because she does not know the specifics of the contract. She informed the members that she would be happy to look into the matter and come back at a later date with the information and to see if the Commission had other concerns. Commission Sterker said that at a previous meeting, Ms. Esaki clarified that Councilmember Yukimura's intent was to inform the Commission on the recent arbitrator's decision, and to ask the Commission to look long range on how the County makes decisions relating to cost. Cost Control Commission Regular Meeting - Open Session January 13, 2014 Page 5 SUBJECT DISCUSSION ACTION Ms. Winn said that although the Commission does not have control over what goes into the contracts the Commission has the ability to make recommendations. However, she does not know whether there should be a standardized process for something that is outside of the collective bargaining agreement; the Commission may want to consider whether standardizing would be good for the County as a whole. Commissioner Sterker stated that Commissioner Chaffin alluded to the fact that if the Commission decides to get involved would it make a difference, or would the Commission just be spinning its wheels. Ms. Winn said that the Commission could either ask Councilmember Yukimura for more input, or she could contact Councilmember Yukimura to see if she had specific ideas and report back to the Commission. Commissioner Sterker voiced her concerns that some members were frustrated because the Commission spent two years working on real property tax exemptions that ended up being shut down by the County Council. At this point, the Commission only wants to look into what it can do to make a difference because it would make no sense for the Commission to delve into something it has no control over. Vice Chair Yoshida said going back to the agenda item one thing that takes her back to Councilmember Yukimura's request is that the Commission should look long range at the County's arbitration and bargaining unit process. She stated that although the Commission has no impact on the process, the Commission did find that the process had some serious flaws, particularly to how long it takes the County to complete a budget and financial report, which created a lot of issues with the arbitrator. She asked if there was a way to help the Finance Department come up with a solution to the point where it can produce a report in a timely manner rather than use the Cost Control Commission Regular Meeting - Open Session January 13, 2014 Page 6 SUBJECT DISCUSSION ACTION Audited Certified Report that is eighteen months old. Commissioner Sterker said that the Commission has the authority to look at contractual procedures with the intent of eliminating, consolidating, overlapping, or duplicate programs and services. Vice Chair Yoshida asked what type of documents the County is required to submit because unlike the County, the private industries would not go into an arbitration hearing with year old financial information just because that's all that is available. She suggested that the Commission do some research into the State laws to see what type of information is required. Commissioner Apao commented that in all fairness the conditions have improved, because he understands that the County Council is using current financial information to help them make decisions. He pointed out to the Commission that the decision has already been made and the County is stuck with it for the next couple of years; he agrees with Vice Chair Yoshida that the County needs to prepare better before going to another round because at this point nothing can be done; the decisions have been made. Vice Chair Yoshida indicated that the Commission should work on a recommendation that would require the County to use current information rather than old information. Chair Kaneshiro stated that it would be beneficial for the Commission to know the type of information that is needed before it can make any recommendations to help improve the process. Vice Chair Yoshida pointed out that the bottom line is whether the County has the ability to pay the increases that the unions are asking for. Cost Control Commission Regular Meeting - Open Session January 13, 2014 Page 7 SUBJECT DISCUSSION ACTION Commissioner Apao asked if the Commission wanted to have another look at Human Resources. Vice Chair Yoshida said that the collective bargaining process not only affects the Police Department, but other bargaining units as well including the financials of how each collective bargaining unit works together. Commissioner Sterker recalled that the Commission talked about the different agencies and the bargaining units they come under. Vice Chair Yoshida noted that most agencies have multiple unions. Commissioner Sterker said that it would be helpful for the Commission to get a list of the different agencies, and the name of the collective bargaining units they come under. Commissioner Chaffin said that there must be some type of chart showing names of the different unions and the bargaining units they come under. Vice Chair Yoshida suggested that the Commission request the information from the Human Resources Department and not the Finance Department. Commissioner Sterker asked if there are other agencies in the County that are not represented by a union. Vice Chair Yoshida pointed out that the Mayor's Office are all appointees and are considered exempt. Chair Kaneshiro said that he liked Commissioner Apao's proposal to bring back representatives from the Human Resources Department to provide an update on its progress. Commissioner Sterker asked if the Commission should continue looking into the overtime in the other departments, particularly in the Parks and Recreation Department. Vice Chair Yoshida asked who would the Commission request the information from? Cost Control Commission Regular Meeting - Open Session January 13, 2014 Page 8 SUBJECT DISCUSSION ACTION Ms. Morikami replied that the Director of Finance can provide the information. Chair Kaneshiro said that although he was comfortable with what the police had to say about its overtime he would like the Commission to invite them back for an update in the future. Commissioner Sterker stated that it is her understanding that the golf course is accruing a lot of overtime due to a shortage of workers. Commissioner Takenouchi asked if there was a laundry list of items that the Commission should look at to which Commissioner Sterker replied no. Commissioner Sterker asked for a progress update on the litigation team in the County Attorney's Office. Ms. Morikami said that that the positions would be budgeted in the County Attorney's Office, and that the discussion will take place on March 15th during the budget review session. Chair Kaneshiro said that he hates to beat on a dead horse, but it is his understanding that the County Council made significant changes to the real property taxes, but the Commission did not get any updates on what the changes were. Chair Kaneshiro said that since the Commission has followed the issue for quite some time it would be nice to get an update on how it helped the deficiencies in the Real Property Tax Department. Commissioner Sterker said that the Commission should also revisit the Kauai Bus because the County is planning to expand its services, and that the Commission should know what the projections are cost wise. Commissioner Chaffin said that he would like the Department of Transportation to provide a graphic chart of the entire island showing each route including any proposal for additional routes. Vice Chair Yoshida said that the information should include financial data on how expanding the Cost Control Commission Regular Meeting - Open Session January 13, 2014 Page 9 SUBJECT DISCUSSION ACTION services would impact the County. She also asked if there was information available on the current fee structures in each department that may need addressing such as licensing fees and permits. Ms. Morikami said that matter is being heard at the County Council, which includes the tipping fee for the landfill. Vice Chair Yoshida said that although the Commission may not recommend any increases in some areas there is still the issue pertaining to camping, park and liquor permits that the Commission may want to look at. Commissioner Sterker said six (6) months ago, the Commission met with Parks Director Lenny Rapozo to discuss increasing the permit fees for park users. However, Mr. Rapozo informed the Commission that he was against any increase because he felt the park pavilions are the one place where people who are out of work can come together to spend time with their families. Commissioner Sterker said that the only concern she had at that time was the public's use of the County's electricity to charge their laptops. She suggested that the Commission revisit the issue before the end of the year. Ms. Morikami shared with the Commission that the County Council passed an Ordinance that now requires each department to provide a list of fee schedules. Vice Chair Yoshida asked what department the information is being sent to. Ms. Morikami replied that the information is being sent to the Department of Finance. Vice Chair Yoshida said because the information is being compiled the Commission would not have to request for anything specific at this time other than keep it on its radar until the list is ready for review to see which department stands out, and then invite that department to a meeting to discuss the fees. Cost Control Commission Regular Meeting January 13, 2014 Open Session Page 10 SUBJECT DISCUSSION ACTION Commissioner Takenouchi asked whether the Commission should look into rental /leases of County buildings. Vice Chair Yoshida asked if he wants to include third -party leases. Commissioner Sterker said that the Fire Department is the only department that she knows of that was leasing office space outside of the County, and that there were plans to accommodate additional storage space. Commissioner Sterker said she remembers the Commission talking about scheduling a tour of the County buildings, including the old Big Save building, however it never happened. She asked if it would be appropriate to ask for an update from the Space Planner. Vice Chair Yoshida asked who is in charge of the renovations at the old Big Save building to which Ms. Morikami replied that County Engineer Larry Dill is in charge of the renovations. Chair Kaneshiro stated that the Commission should request for an update from County Engineer Larry Dill in the future. Commissioner Sterker stated that the Commission should continue its discussion on the arbitration issue. Chair Kaneshiro said that at this point, he would rather wait until the budget review sessions start. Commissioner Chaffin voiced his concerns that his comments really revolve around the fact that the Commission can discuss things, but yet things never get resolved. Commissioner Sterker said the Commission has discussed matters in the past with results such as the recommendation to increase real property tax exemptions. Vice Chair Yoshida said the big issue is that if a comment is made the proper protocol is to make a request to the Chair that he place the item on the next agenda for further discussion. Commissioner Takenouchi asked if the Commission should invite Deputy Chief Contrades to its February meeting to discuss a recommendation for a new dictation system in the Police Department. Commissioner Sterker Cost Control Commission Regular Meeting January 13, 2014 Open Session Page 11 SUBJECT DISCUSSION ACTION indicated that the purpose is to determine what type of system the department needs; the name of the vendor the department made its inquiry to; and how much personnel time would it save. Vice Chair Yoshida said that the following items will be placed on the next agenda: • Discussion on a possible recommendation for a new dictation system in the Kauai Police Department; Staff to send a memo to Deputy Chief Contrades; • Send a memo to Steve Hunt, Director of Finance or Human Resources requesting information for the Commission to review first as it relates to overtime in each department to include the amount of employees; how much overtime is being accrued; pay scale for the overtime; place on March's agenda to determine which department the Commission wants to closely look at; • Fee Schedule for all County departments Vice Chair Yoshida asked if the Commission should send a letter to the Finance Department in advance to request for information on the fee schedule for all County departments or wait until the information in available. Ms. Morikami said that she has a copy of Ordinance No. 959 and will give it the Commission. Vice Chair Yoshida said that the Commission's intent is to review all of the information beforehand so it can decide what item to place on the agenda. Announcements Next meeting— February 10, 2014 at 1:30 p.m. in the Mo'ikeha Building in he Liquor Conference Room Cost Control Commission Regular Meeting - Open Session January 13, 2014 Page 12 SUBJECT DISCUSSION ACTION Adjournment Commissioner Chaffin requested to hear additional testimony from Mr. Sykos before adjourning the meeting. Chair Kaneshiro said that he would allow only three minutes for his testimony. Commissioner Chaffin said that although he appreciates Mr. Sykos verbal testimony he would rather have him submit written testimony so that the Commission can review it first, and then put it on its next agenda for further discussion. Mr. Sykos stated that for the past five (5) years he has given testimony about how the County's computer system is so antiquated that when JoAnn Yukimura was Mayor it was a legacy system that she inherited. The County does not have a modern system as one would expect, and until the County replaces the system there will always be a lag of information coming from finance. He asked that the Commission review the following issues pertaining to the County Auditor's reports in which the public was not given the opportunity to provide testimony, which is required by law. There are overtime issues in the Solid Waste Division that have been a public issue for many years because of employees calling in sick, which requires calling in another person to cover the shift resulting in overtime. Commissioner Chaffin asked Mr. Sykos to put his testimony in writing. Chair Commissioner Sterker moved to adjourn the Kaneshiro thanked Mr. Sykos for his testimony and called for a motion to meeting. Commissioner Takenouchi seconded adjourn the meeting. the motion. Motion carried 6:0 Submitted by: Mercedes Youn, Staff Support Clerk (x) Approved as circulated on February 10, 2014. ( ) Approved as amended. See minutes of meeting. Reviewed and Approved by: Arryl Kaneshiro, Chair