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HomeMy WebLinkAbout09-12-16 Cost Control Commission Meeting Minutes Approved mo COUNTY OF KAUAI Minutes of Meeting OPEN SESSION Board/Committee: Cost Control Commission Meet ing Date September 12, 2016 Location Mo`i keha Building – Liquor Conference Room No. 3 Start of Meeting : 1:35 p.m. End of Meeting : 2:31 p.m. Present Chair Joanne Nakashima ; Vice -Chair James Whitfield; Members: Jan Hashizume, Tyler Rodighireo, Laurie Yo shida and Glen Takenouchi. Also present: Board & Commissions Office Staff: Support Clerk Mercedes Omo and Administrator Jay Furfaro. Office of the County Attorney: Deputy County Attorney Mark Bradbury Excused Absent Tricia Lynn -Yamashita SUBJ ECT DISCUSSION ACTION Call To Order Chair Nakashima called the meeting to order at 1:35 p.m. with six (6) members present constituting a quorum. Approval of Minutes Regular Open Session Minutes of August 8, 2016. Commissioner Takenouchi moved to app rove the meeting minutes of August 8, 2016. Commissioner Rodighiero seconded the motion. The motion carried 6:0. CCC 2016 -08 Review and discuss correspondence receive d relating to the County’s CIP (Capital Improvement Projects). Boards and Commission Administrator Jay Furfaro, gave his presentation on the information packet that was sent earlier to Commissioners. He reviewed each attachment and then answered questions. In refer ence to the data in the County’s CIP Report (Capital Improvement Proje cts) on the various revenue funds, Commissioner Whitfield asked what the numbers in parenthesis Cost Control Commission Regular Open Session – September 12, 2016 Page 2 SUBJ ECT DISCUSSION ACTION represent. A dministrator Furfaro explained that in reference to the County’s operating budget spreadsheet the amounts of the proposed expenditures as itemized will be appropriated to the various funds and a ccounts for expenditure by the Departments for the expressed and specific purposes as enumerated. He further explained that t he revenues under the inter -g overnm ental column are generated by payment in lieu o f taxes, transient accommodation ta x , as well as f ederal & s tate aid grant s and the revenues are appropriated into the Housing & Community Devel opment Fund and Highway F und. Also, the revenues in the R evenues P roperty column are generated by rents and con cessions and the monies are appropriated into the Parks and Recreation I mprovement /Maintenance Fund, Solid W aste Fund and the Golf F und. In regard to the Golf Fund , Administrator Furfaro stated that majority of the revenues come s directly fro m the Wailua Golf Course , and although the spreadsheet shows an operatin g budget of $2,459,963, in actuality the re was a shortfall of $1.2 million which had to be made up by the General Fund. C ommissioner Rodighiero asked if the revenues in S olid Waste Disposal Fund represent money the County receives from new tipping fees or the old tipping fees. Administrator Furfaro replied that the numbers represent the new tipping fees. In reference to the proposed budget ordinance, Commissioner Whitfield asked what the numb ers indicated in brackets represent. Administrator Furfaro stated that the brackets indicate that a transfer of the appropriation balance was made. He shared that federal law requires the County to have a seven (7) year closing plan for the landfill, and in order to meet that requirement , the County had to set aside reserves to cover that co s t, and in doing so, the County found that they had the ability to cut the closure and was able to borrow $3,568 ,262 from the State of Hawai‘i Landfill Revolving F und at a 1.5% interest rate. As a result, the County was able to credit the Solid Waste Disposal Fund in the amount of $3.9 million which was originally set aside for the l andfill closing plan . Commiss ioner Rodighiero asked if the County’s debt payment is f or the County’s on -going projects. Administrator Furfaro stated that the debt payments are related to projects that have Cost Control Commission Regular Open Session – September 12, 2016 Page 3 SUBJ ECT DISCUSSION ACTION already been completed or on -going. He noted that re lative to the Highway Fund , the funds cannot be used to resurface old roads , the funds can only be used to build new roads. C ommissioner Rodighireo asked if the public utility franchise taxes are connected to the utility poles you see on County property to which Administrator Furfaro replied, yes, noting that a utility company who wa nts t o put up a pole (s) on County property has to pay a user fee . Commissioner Rodighireo commented that from the looks of things the County’s Housing Fund s are doing fine in terms of rental revenue. Administrator Furfaro s tated that the County spent a millio n dollars acquiring housing, which gave the County leverage in terms of credit in the Housing Departmen t and the way of collecting rent. With the exception of the Princeville project because the Count y was able to negotiate a deal with the Hawai‘i Housing Authority that in sixty (60) years the County would own the buildings. Commissioner Rodighiero asked Admin istrator Furfaro to explain to the difference between the appropriation balance and the propo sed budget ordinance to which Administrator Furfaro expla ined that the appropriation balance represents the funds that are available for the different proje cts, and t he proposed budget o rdinance represents monies to be spent; something like a wish list. Co mmissioner Whitfield asked relative to th e Hanale i District Black Pot Restrooms I mprovement if the money had already been spent or is in the process of being spent. Administrator Furfaro explained that the $145,315 is scheduled to be spent and that the County will be holding a public hearing in relations to that. Administrator Furfaro shared that about four (4) years ago, he introduced a proposal to the Council to change the Cost Control Commission to a Cost Control Revenue Forecasting Commission. He stated that although t he State has a rev en ue council it did not have an impact o n the County C ouncil decision because the members voted 2 -5 against his proposal . Cost Control Commission Regular Open Session – September 12, 2016 Page 4 SUBJ ECT DISCUSSION ACTION He noted that although he provide d the Commissioners with information on the County’s re venues and fees, the Charter does not allow th e Cost C ontrol Commission to review the County’s revenue s. Commissioner Rodighireo asked if he could obtain a list of the different revenues that are filtered into the General Fund particularity, the R evenue s and Property F und to which Administrator Furf aro replied, sure. Additionally, Administrator Furfaro shared that Financial Auditors will be on site to do a compl iance check on the County’s fis cal year ending June 30, 2016. The audit will include payroll testing, cash receipts, pCards purchases, contracts, grants, housing, federal vouchers, fuel and utility charges. With no further questions or comments from the Commissioners, Chair Nakashima moved on to the next item. CCC 2016 -09 Discussion and potential topics to reduce the cost of gover nment while maintaining a reasonable level of public services. Chair Nakashima asked eac h commissioner to offer topics for the Commission to discuss over the next several months. Commissioner Rodighireo asked if it was possible to have someone from the H ousing Agency present at the next meeting to paint a clear picture of what the revenues from property are versus the amount of expenses incurred to generate those revenues , and perhaps come up with a recommendation to cut expenses at that point. Admini strator Furfaro acknowledged Commissioner Rodighiero’s request and would make the necessary arrangements to have a representative from the Housing Agency present at the next meeting. In addition, Administrator Furfaro asked the Commissioners if they wo uld like to have someone from the Parks and Recreation Department present at the next meeting to talk about Cost Control Commission Regular Open Session – September 12, 2016 Page 5 SUBJ ECT DISCUSSION ACTION the golf course operations. Commissioner Whitfield commented that it feels like t h e Commission hands are tied because it’s dealing with more revenu e issues than cost saving issues . Commissioner Yoshida noted that although the Commission cannot make any recommendations to the increase fees, as a suggestion, perhaps the Commission ers could word it in a way as such that it would save the C ounty money i n the long run if the fees were to be increased. Commissioner Rodighiero sta ted that he would like to obtain more information on the Solid Waste Disposal Fund and the Highway Fund. Administrator Furfaro stated that he would contact Troy Tanigawa to see if he’s available to talk about the specifics relating to the Solid Waste Disposal Fund, noting it would be a good idea for the Commission to review the CAFR R eport from last ye ar because it address es the appropriations in the Highway Fund. Commissioner Yo shida asked how the Commission c ould go about inquiring about changing the Cost Control Commission into the Cost Control Revenue Enhancement Commission. Administrator Furfaro stated that he would contact Records Management Analyst Nancy Wilson to get a copy of his proposed resolution. With no further discussion, Chair Nakashima moved to the announcements. Announcements Chair Nakashima announced that the next meeting is set for Monday, October 10, 2016, 1:30 p.m. at the Mo’ikeha Building, Liquor Conf erence Room No. 3. Staff noted that the meeting location for the October meeting will be relocated to the Līhu‘e Civic Center, Mo’ikeha Building, Meeting Room 2A/2B. Adjournment With no further business to conduct, Chair Nakashima called for a motion to adjourn the meeting. At 2:31 p.m. Commissioner Yoshida moved to adjourn the meeting. Commissioner Takenouchi seconded the motion. The motion carried 6:0. Submitted by: __________________________________ Reviewed and Approved by: _________________________________________ Mercedes Omo , Staff Support Clerk Joanne Nakashima , Chair Cost Control Commission Regular Open Session – September 12, 2016 Page 6 ( ) Approved as circulate d on (x) Approved as amended . See minutes of the October 10 , 2016 meeting.