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HomeMy WebLinkAbout2014_0707_Minutes Open_APPROVED COUNTY OF KAUAI Minutes of Meeting OPEN SESSION Approved as circulated 9/15/14 Board/Committee : SALARY COMMISSION Meeting Date July 7, 2014 Location Mo ' ikeha Building, Meeting Room 2A/213 Start of Meeting: 9 : 06 a.m. End of Meeting : 10 : 56 a.m. Present Vice Chair Randy Finlay. Members : Charles King; Cammie Matsumoto; Lenie Nishihira; Jo Ann Shimamoto Also : Deputy County Attorney Mona Clark; Boards & Commissions Office Staff. Support Clerk Barbara Davis; Administrator Paula Morikami; Administrative Aide Teresa Tamura; Acting Personnel Services Manager Thomas Takatsuki; HR Specialist II Kathy Tanita Excused Chair Michael Machado . Member Sheri Kunioka-Volz Absent SUBJECT DISCUSSION ACTION Prior to the start of the meeting, Council Administrative Assistant Eddie Topenio gave the Oath of Office to new Commissioners Camilla Matsumoto and Lenie Nishihira Call To Order Vice Chair Finlay called the meeting to order at 9 : 06 a.m. with 5 members present and welcomed the new members to the Commission. Approval of Open Session Minutes of January 6, 2014 Mr. King moved to approve the minutes as Minutes circulated. Ms . Shimamoto seconded the motion. Motion carried 5 : 0 Business SC 2014-04 Review, discussion and possible decision-making with regard to establishing salaries for the fiscal year 2015/2016 for Councilmembers and all officers and employees included in Section 3 -2 . 1 of the Kauai County Code a. Comparison of executive pay rates for counties b. Inversion chart of Department/Deputy Department Heads versus highest Civil Service employee C. Resolution 2012- 1 ; Resolution 2012-2 ; Resolution 2012-3 ; Resolution 2013 - 1 ; Resolution 2013-2 Ms. Morikami acknowledged Mr. Takatsuki and Ms. Tanita from the Department of Personnel Services (DPS) who compiled the comparison Salary Commission Open Session July 7, 2014 Page 2 SUBJECT DISCUSSION ACTION pay rates and the inversion chart that was included in the meeting packet. Ms. Morikami also distributed the history of the civil service pay increases throughout the past years, and an article from the Big Island regarding salary increases recently proposed to their Council. Ms . Morikami explained for the benefit of the new members what the role of the Commissioners is, and a brief overview of the Resolutions noting that the salaries set are maximums, but not necessarily indicative that everyone is at the maximum cap. As a reminder, the County Council urges the Salary Commission to have recommendations to them no later than March 15 in accordance with the Charter. As compared to the private sector, Ms. Nishihira asked if the Big Island' s budget is based on their population. Mr. Takatsuki said he could not provide that at this time because he did not look at budgets. The comparison is based strictly on what the various county mayors and department heads are making based on what their Salary Commission has proposed. Mr. Takatsuki was asked to get budget information for the other islands, the number of employees, and the county populations . A discussion ensued regarding the inversion chart, and while the discrepancy of the inversion can be narrowed on occasion, the rank and file recently received an increase, which again changes the inversion. It was further noted there will be increases for the police through June 30, 2017 . It was pointed out that police and fire have had raises during times when other employees did not receive a raise, and that should be taken into consideration. Mr. Takatsuki went on to explain that while employees may be listed as the same position, the pay discrepancy can be attributed to the number of years of service . The pay rate for Excluded Managers (EMs) is set by Executive Order through the Mayor' s Office. Vice Chair Finlay pointed out that while trying to right the inversion rate, it appears the bargaining units use the management pay increases to renegotiate raises for the rank and file. Ms. Shimamoto said it does not work the other way Salary Commission Open Session July 7, 2014 Page 3 SUBJECT DISCUSSION ACTION around, and just because the chief gets a raise does not mean the rank and file gets a raise to which Mr. Takatsuki said they negotiate with the bargaining units who come up with their own plan as to what they think the pay increases should be. On the other side, management says that is not what it is going to be. Because of the language in the Hawaii Revised Statutes (HRS) police and fire can go to final and binding arbitration, and it is the arbitrator who sets the increases. Inversions occur because certain bargaining units negotiate better than others. Mr. Takatsuki explained he is the County ' s representative at the bargaining table in which they negotiate statewide for all bargaining units, but the Mayor signs the agreements. Vice Chair Finlay asked how many entities there were that determined salaries to which it was noted there were the bargaining units, the Salary Commission, and the Executive Order. Mr. Takatsuki said that all civil service employees are covered under their respective collective bargaining agreements whether it be units 1 , 2, 3 , and 4 or units 11 , 12 , 13 , as well as the new bargaining unit 14. Excluded managerial pay is based on HRS Chapter 89 C. Department heads, deputies, and other positions are established through the Salary Commission. Ms. Morikami pointed out that the salaries for 6 of the department heads (Police, Fire, Liquor, Water, Personnel Services, and Planning) listed on the Resolution are set by a board or commission based on the maximum guideline from the Salary Commission because they are responsible for the hiring or firing of that position. Mr. Takatsuki said the other counties are pretty much set up this way but he did not know if they had any other intricate issues. With 3 different places from which salaries can be set, Vice Chair Finlay asked if it would be more efficient if 1 entity had input into all 3 . Mr. Takatsuki said they would have to change the law. Before it was simpler because the Legislature set the pay before collective bargaining was introduced. Mr. King said the Commission can set the salaries, but have nothing to do with the budget, or how the moneys for Salary Commission Open Session July 7, 2014 Page 4 SUBJECT DISCUSSION ACTION those salaries are raised. Vice Chair Finlay said when the Mayor signed the Executive Order raising excluded management, he had to have anticipated there would be inversions. Mr. Takatsuki said they knew there would be inversions . Vice Chair Finlay thought a 1 percent inversion was insignificant based on the seniority and other factors involved. The real significance with the inversion seems to be the Police Department and Public Works. Mr. Takatsuki explained that the inversion rate changes as long time employees retire. He further noted that BU 1 is UPW, BUs 2, 3 , 4, 13 , and 14 are HGEA, BU 11 is HFFA and BU is 12 SHOPO . Asked when HR was established, Mr. Takatsuki said they are still going through the process of changing from DPS to HR and the Boards and Commissions Office is working on a charter amendment for the ballot. Vice Chair Finlay recalled that change started with the Cost Control Commission when it was determined that each department had its own little HR department, and it would be cost effective for the County to combine them into one. While it will become a cost savings to the County, it will require a more demanding skill set for the person who oversees HR. Mr. King asked if the request for the increase was based on the expanded responsibilities because the expanded responsibilities haven't been passed. Mr. Takatsuki explained there are functions that were never part of DPS , which now includes workers from Finance and Payroll. Asked about the people in the previous positions, Mr. Takatsuki said most of the people who were performing 75 to 100 percent of personnel duties came into the department. Secretaries who were performing some of those duties did not come into DPS so the department has expanded from 8 people to 15 and then to 18 . Asked where the cost savings were that came out of the transition, Mr. Takatsuki said he could not tell her the money part, but there is supposed to be savings. Ms. Morikami said one of the cost Salary Commission Open Session July 7, 2014 Page 5 SUBJECT DISCUSSION ACTION saving measures that the Civil Service Commission and the Cost Control Commission looked at is with proper trainings uniformly administered throughout the County, whether for safety issues, EEOC issues, etc ., having a central location will save money in bodies in the long run. Asked if everyone was salaried versus salaried exempt it was noted that deputies do not earn overtime, but based on law, the EMs are entitled to overtime as long as they do not exceed what is set as their salary range. Asked when he started noting inversion was a problem, Mr. Takatsuki recalled it as more than 15 years ago. Vice Chair Finlay thought it would be interesting to see how the other counties are wrestling with the same problems we have here; Mr. Takatsuki said they could check and find out. Ms. Morikami advised the Commission that since December 1 , 2008 , there have been no salary increases for the department heads except for Fire, Police, County Clerk, Councilmembers, and Prosecutors; the last column shown on the Resolution indicates a pay increase, but it never took place . Communications SC 2014-01 Letter dated 6/ 10/ 14 from the Kauai Police Department Ms . Shimamoto moved to receive the requesting correction to the pay inversion for the Chief and Deputes communication. Mr. King seconded the motion. of Police Motion carried 5 : 0 Discussion ensued regarding the inversion rate and that the Commission thought that was resolved with Resolution No. 2012-2, but the Executive Order raised the EMs causing this new inversion. Vice Chair Finlay said while they need to consider what the other counties are doing they also need to consider what private industry is doing, and there are not many raises in the private sector. SC 2014-02 Letter dated 6/ 16/ 14 from the Prosecutor' s Office Mr. King moved to receive the communication. requesting consideration of pay increases for the Prosecutor, First Deputy Ms. Shimamoto seconded the motion. Motion Attorney and all Deputy Attorneys carried 5 : 0 Salary Commission Open Session July 7, 2014 Page 6 SUBJECT DISCUSSION ACTION Mr. King said he would like to see what the Prosecutor is looking for as far as increases. Vice Chair Finlay noted the Prosecutor' s letter was requesting agenda time at the July meeting, but he was not present. Vice Chair Finlay asked Ms. Morikami to follow up with asking the Prosecutor to attend the next scheduled meeting. SC 2014-03 Memo dated 6/25/ 14 from the Civil Service Commission Ms. Shimamoto moved to receive the requesting consideration of a pay increase for the Director of DPS/HR in communication. Mr. King seconded the motion. light of the expanded responsibilities for the position Motion carried 5 : 0 Mr. King thought an increase seemed warranted as far as the expanded responsibilities, but then hits a roadblock because not everybody should be on the same level . Asked what the ballot question would be Ms . Morikami said it would be a name change from the Department of Personnel Services to the Department of Human Resources, and the amendment would describe the functions, which they are currently doing in the capacity of an HR Department. Vice Chair Finlay was in agreement with Mr. King in that everyone would love to explain all the duties they do and the need for a raise, but in the broader spectrum they are doing no more than other departments . The Commission needs to take all the communications into consideration, then look at it in a global sense and perhaps fine tune certain departments . Ms. Morikami explained that when The Nash Study was done in 2007 DPS had a study done county-wide on classifications, and based on that study it was determined there would be two levels of department heads. The rate listed for 2008 in the Resolution is the salary cap currently in effect. Vice Chair Finlay said over the last two years there has been a letter from the Mayor requesting to freeze the salaries, and asked if there had been any correspondence from the Mayor' s Office. Ms . Morikami noted only that there have been concerns from the department heads that they have not Salary Commission Open Session July 7, 2014 Page 7 SUBJECT DISCUSSION ACTION received raises since December 1 , 2008, but she did not know if those were expressed. Mr. King said the progression in salaries shown on the Resolution was to correct the previous inversions. Vice Chair Finlay suggested the Director of Finance be at the next meeting to help understand from a budget standpoint what type of leeway they have. Items requested for the next meeting : ➢ Director of Finance to provide guideline on outlook for tax revenues ➢ Vice Chair Finlay to solicit comment from the Mayor ➢ Comparison of budget, number of employees, and population of the four counties from DPS ➢ Presentation from the Prosecuting Attorney ➢ Presentation from the Civil Service Vice Chair Finlay stated the Commission is still in an information Commission regarding the HR Director gathering mode, and all communications reviewed today will remain active. Next Meeting Monday, August 11 , 2014 — 10 : 00 a.m. — Moikeha Building, Meeting Vice Chair Finlay read from Article XXIX of the Room 2 A/B Charter outlining the duties and responsibilities of the Salary Commission Adjournment Ms. Shimamoto moved to adjourn the meeting at 10 : 56 a.m. Mr. King seconded the motion. Motion carried 5 : 0 Submitted by: Reviewed and Approved by: Barbara Davis, Support Clerk Randy Finlay, Vice Chair ( ) Approved as circulated. ( ) Approved with amendments . See minutes of meeting.