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HomeMy WebLinkAbout2016_0205_AgendaPacketCharles King Chair Sheri Kunioka -Volz Vice Chair CALL TO ORDER Members: Robert Crowell Michael Machado Camilla Matsumoto Lenie Nishihira Jo Ann Shimamoto COUNTY OF KAUA'I SALARY COMMISSION NOTICE OF MEETING AND AGENDA Friday, February 5, 2016 9:00 a.m. or shortly thereafter Mo'ikeha Building, Meeting Room 2 A/B 4444 Rice Street, L-1hu`e, HI 96766 ELECTION OF CHAIR AND VICE CHAIR FOR 2016 (deferred 1/8/16) APPROVAL OF MINUTES Open Session Minutes of January 8, 2016 BUSINESS SC 2015 -02 Review, discussion and possible decision - making with regard to establishing the maximum cap for salaries for the fiscal year 2016/2017 for Councilmembers and all officers and employees included in Section 3 -2.1 of the Kauai County Code and the submittal /presentation to be given to Council (On- going) a. Draft Resolution 2016 -1 b. Preamble to the Resolution c. Review of PowerPoint presentation ANNOUNCEMENTS Next Meeting: To Be Determined ADJOURNMENT NOTICE OF EXECUTIVE SESSION Pursuant to Hawaii Revised Statutes §92 -7 (a). The Commission may, when deemed necessary, hold an executive session on any agenda item without written public notice if the Executive Session was not anticipated in advance. Any such Executive Session shall be held pursuant to HRS §92 -4 and shall be limited to those items described n HRS §92 -5(a) cc: Matthew Bracken, Deputy County Attorney An Equal Opportunity Employer PUBLIC COMMENTS and TESTIMONY Persons wishing to offer comments are encouraged to submit written testimony at least 24 -hours prior to the meeting indicating: 1) Your name and if applicable, your position/title and organization you are representing. 2) The agenda item that you are providing comments on; and 3) Whether you are testifying in person or submitting written comments only. 4) If you are unable to summit your testimony at least 24 hours prior to the meeting, please provide 10 copies of your written testimony at the meeting. The length of time allocated to persons wishing to present verbal testimony may be limited at the discretion of the chairperson or presiding member. Send written testimony Salary Commission Attn: Barbara Davis Office of Boards and Commissions 4444 Rice Street, Suite 150 Mhu'e, HI 96766 E -mail: bdavis @kauai.gov Phone: (808) 241 -4919 Business Fax: (808) 241 -5127 SPECIAL ASSISTANCE If you need an alternate format or an auxiliary aid to participate, please contact the Boards and Commissions Support Clerk at (808) 241 -4919 at least five (5) working days prior to the meeting. Salary Commission — February 5, 2016 2 1 P a (-!; e COUNTY OF KAUAI Minutes of Meeting OPEN SESSION Board /Committee: SALARY COMMISSION Meeting Date I January 8, 2016 Location Mo'ikeha Building, Meeting Room 2A/213 Start of Meeting: 9:03 a.m. I End of Meeting: 9:53 a.m. Present Chair Charlie King. Members: Robert Crowell; Michael Machado; Lenie Nishihira (9:08 a.m.); Jo Ann Shimamoto Also: Deputy County Attorney Teresa Tumbaga; Boards & Commissions Office Staff. Support Clerk Barbara Davis, Administrator Jay Furfaro Excused Vice Chair Sheri Kunioka -Volz. Member Cammie Matsumoto Absent SUBJECT DISCUSSION ACTION Call To Order Chair King called the meeting to order at 9:03 a.m. with 4 members present. Chair King referenced a recently published article, which showed there are 5 people in the City and County of Honolulu that are paid more than their Mayor, which has been a concern of ours from time to Election of Chair and Vice Chair for 2016 time. Election Chair King said he thought that whoever was the Chair and had brought the process through, up to presenting it to the Council, should take it to getting it through to the Council. The Charter says you elect a new chair each year and the Commission's Rules state the Chair is elected the first meeting of the year. This being the first meeting of the year and the Vice Chair is not present, Chair King asked the Deputy Attorney for a clarification. Attorney Tumbaga cited Charter section 23.02 G which says each board or F P commission shall elect its chairman or other officers. The term of office of the chairman............ shall be for one year and no member ............ shall 1/� succeed himself as chairman for the term immediately following the Salary Commission Open Session January 8, 2016 Page 2 SUBJECT DISCUSSION ACTION expiration of his term. The Charter does not actually say one calendar year, so it could be interpreted from July to July. The Commission's Rule No. 7 C says the members of the Commission shall elect annually a chairman and a vice chairman to serve for the ensuing year, . I I I I I I I I I I I I I The election shall occur during the first meeting of each calendar year or as soon as possible thereafter. It is the Rules that specify the first meeting, but because the Charter states the term as one year Attorney Tumbaga did not think there would be a violation. Ms. Nishihira entered the meeting at 9:08 a.m. Chair King said he was not unwilling to shepherd this process through to July. Mr. Machado moved to defer the election of officers. Ms. Shimamoto seconded the motion. Motion carried 5:0 Approval of Open Session Minutes of November 18, 2015 Mr. Machado moved to approve the minutes as Minutes circulated. Mr. Crowell seconded the motion. Motion carried 5:0 Business SC 2015 -02 Information gathering, review, discussion and possible decision - making with regard to establishing the maximum cap for salaries for the fiscal year 2016/2017 for Councilmembers and all officers and employees included in Section 3 -2.1 of the Kauai County Code (On- going) a. Salary Recommendations by position reflecting Cost of Living Increase b. Salary summary indicating 4 tier level from Administrator Furfaro C, Qualifications of Executive Appointees as prescribed by the Kauai County Charter or Hawaii State Laws d. Draft Resolution 2014 -1 rejected by the County Council on January Salary Commission Open Session January 8, 2016 Page 3 SUBJECT DISCUSSION ACTION 742015 e. Resolution 2012 -1; Resolution 2012 -2; Resolution 2012 -3; Resolution 2013 -1; Resolution 2013 -2 as relates to the salaries of County officers and employees Chair King noted the earlier circulation of the Preamble he had written and to which Ms. Matsumoto had offered additional suggestions. Chair King also noted a communication from the County Attorney's Office which describes their duties as requested by the Salary Commission. Mr. Furfaro distributed a spreadsheet of the bargaining units followed by the detail of the last salary summary submitted by the 2007/2008 Salary Commission. That spreadsheet scheduled three 3.7% increases spread over 3 years to get the salary grades up to par. Only two of the recommendations were implemented. That information is all summarized in the memorandum that is on the front page and summarizes what the union increases were by the bargaining units ranging from 12% for some blue - collar supervisors up to 29.3% for the police over the same period of time. Mr. Furfaro noted he had added narrative to the second page if the Commission wants to use that to summarize that there are now division heads /department heads that are supervising people that are earning a larger wage base than the department heads. Mr. Furfaro then distributed the job description for the engineering division from Larry Dill. Mr. Furfaro said with the exception of Parks and Recreation, as they have added some responsibilities and a Park Planner, which is being revised, all the others are correct. Chair King pointed out that they do not have a proposed Resolution and assuming the Commission can come to an agreement on the amount they would need to reconvene for that. Staff said that in the past the Commission agrees on the caps and the attorney puts the Resolution together for the Salary Commission Open Session January 8, 2016 SUBJECT DISCUSSION ACTION Commission's review and approval. Ms. Shimamoto said where they are moving positions to different tiers she recommends leaving Housing at Tier III. The scope of work involved for the Director is not only Housing but Community Development. Mr. Crowell stated they have been waiting months for the County audit. .........Mr. Furfaro said they are now anticipating the CAFR about the third week of January. Mr. Crowell said the question after that is can the County afford what the Commission is asking for, and is the Commission prepared to go in with a recommendation now without knowing the CAFR. Chair King said they were waiting for the CAFR so the Council would have that information, but it is not up to the Commission to judge whether the County can afford it or not. Mr. Machado noted that one of Mr. Furfaro's handouts showed there has not been a change since 2009 except for the Chief of Police and Fire, etc., and the way that looks should be very helpful in the presentation. The last Resolution may have been untimely because of the tax increases, but maybe it will be more acceptable now. Mr. Furfaro explained that he planned to use that sheet in 4 or 5 slides as a PowerPoint. Ms. Shimamoto said the narrative Chair King put together was really good and made it understandable while the suggestions from Ms. Matsumoto fit in well. On page 1, 3`d paragraph Ms. Shimamoto suggested clarifying the next to last sentence by adding to the Council following the wording "all relevant budget data was available ". Chair King suggested before getting too far into the presentation he would like to see if there is a consensus on the actual salaries. Chair King noted Ms. Shimamoto proposed moving Housing Director from Tier IV to Tier III to which the Commission was in agreement. Also the Director of Human Resources Dosition has also been discussed before, which is shown in Tier Salary Commission Open Session January 8, 2016 UM SUBJECT DISCUSSION ACTION III, but they had talked about it being in Tier II. Mr. Furfaro pointed out that prior to the four tier presentation, HR was in Tier V so it actually moved up to III. Chair King noted the benefits are reflected (in the spreadsheet and the Tier listing), but technically the Commission does not have to show it. Mr. Furfaro noted the Commission is not required to show that as part of the cost — only salaries. Chair King said it would be beneficial for the Council to look at. Mr. Furfaro noted there is a separate line for deputy attorneys in both the Prosecutor's Office as well as the County Attorney's Office and the spreadsheet is based on single positions but there are 8 attorneys in Mr. Trask's office and 11 attorneys in the Prosecutor's Office; that number is summarized at the bottom. Chair King asked for a motion to approve the salary maximums to be presented to the Council. Mr. Machado moved to approve the salary maximums as amended by moving Housing to Tier III. Ms. Nishihira seconded the motion. Mr. Crowell said at the last meeting they discussed the Transportation Director and Elderly Affairs and questioned if they should not address those positions in this Resolution because they are not appointed. Chair King said he would strike that from the narrative if they were not to be part of the Resolution, and then called for the question. Motion carried 5:0 Chair King called for comments and suggestions on presenting the information to Council. Something he discussed with the Staff was perhaps doing a PowerPoint. A concern is how the information should flow. Attorney Tumbaga was asked how long it would take to draft the Resolution to which she answered she believed that would be Attorney Bracken, and she did not feel she could commit a timeline for him. Staff asked if the Commission wanted to wrap everything from the past into one Resolution so that they are not looking at 4 separate Resolutions to which various Salary Commission Open Session January 8, 2016 I'._- . SUBJECT DISCUSSION ACTION Commissioners said that would help in the future. Mr. Machado asked if they knew what type of questions to expect with this new Resolution so they can get ready for that. Chair King thought the major concern was going to be the amount of the increase. In '07 it was 24% and that was broken up over 3 years, but it actually only went for 1 year. Given that, the full 11 % is justified now. If that gets turned down it is conceivable the Commission could reconvene and present something that is staggered, but at this point they have approval for the full 11.2 %. Chair King said last year there were questions out of left field that they never could have anticipated from the information that had been gathered by the Councilmembers. He would hope they will be presenting the Council with enough information now to make a reasonable decision. Mr. Furfaro posed a question to the County Attorney if they could check on the supplemental budget that is submitted after the initial draft to see if there is time to come back with a new proposal that is staggered in steps and make that presentation in the reforecast. As far as solicitation of department heads testimony it would probably be best to look at the files they have from the Police Chief, the Fire Chief, and the Planning Director, in addition to positions that have been vacated, and work that into the narrative. Mr. Furfaro suggested for the PowerPoint presentation that they include the 2008 Resolution that shows the big valley where people went 6 years without raises. They should also give a history of the Consumer Price Index because they have a situation where at 11 %, people who were working for the County in 2008 are now only making 89% of what their dollar bought, and maybe do a profile of the other counties, especially when it comes to the engineering department in which the duties by county are not equal. Mr. Furfaro said he would be happy to put those 5 sheets together for a PowerPoint. Salary Commission Open Session January 8, 2016 Page 7 SUBJECT DISCUSSION ACTION Staff advised the Commission that they need to start working backwards, timeline -wise, as the Resolution has to be to the County Council by March 15. A discussion of dates as relates to posting and placement on Council's agenda ensued with the suggestion that the Commission's next meeting date be sometime early February. In the meantime, Staff will send Chair King's Preamble out to the members for further comments and suggestions. Commissioners provided their availability within the first nine days of February; Staff will check on meeting availability and confirm back to all. Ms. Shimamoto questioned the difference in the percentage on page one of 2.24% and the percentage on page 3 of 1.6 %. Chair King said he would take a look at that. Adjournment Mr. Machado moved to adjourn the meeting at 9:53 a.m. Ms. Nishihira seconded the motion. Motion carried 5:0 Submitted by: Barbara Davis, Support Clerk () Approved as circulated. () Approved with amendments. See minutes of Reviewed and Approved by: meeting. Charles King, Chair SALARY COMMISSION COUNTY OF KAUA' I VC5O�tItIDII No. 2016ml RESOLUTION RELATING TO THE SALARIES OF CERTAIN OFFICERS AND EMPLOYEES OF THE COUNTY OF KAUAI WHEREAS, pursuant to Section 29.01 of the Kauai County Charter, the Salary Commission establishes the maximum salaries of all elected and appointed officers as defined in Section 23.01 D of the Charter, BE IT RESOLVED by the Salary Commission of the County of Kauai, State of Hawaii, that the maximum salaries of certain officers of the County of Kauai are established as follows: Article I. Salaries of Certain Officers and Employees SECTION 1. Effective as of July 1, 2016, the maximum salaries, payable semi - monthly, of certain officers and employees shall be as follows: Position Mayor Managing Director County Engineer Deputy County Engineer Director of Finance Deputy Director of Finance County Attorney First Deputy County Attorney Deputy County Attorney Prosecuting Attorney First Deputy Prosecuting Attorney Deputy Prosecuting Attorney Director of Human Resources Chief of Police Deputy Chief of Police Planning Director Deputy Planning Director Manager and Chief Engineer, Department of Water 0 Maximum Annual Salary $132,000 $122,539 $119,357 $114,582 $119,357 $114,582 $119,357 $114,582 $109,560 $119,357 $114,582 $109,560 $114,582 $127,313 $114,582 $119,357 $109,560 $119,357 �sL C 0/S - 0 =)4*� Q. Deputy Manager- Engineer, $1143582 Department of Water Fire Chief $1273313 Deputy Fire Chief $1141582 Director of Economic Development $1093560 Director of Liquor Control $109,560 Director of Parks & Recreation $119,357 Deputy Director of Parks & Recreation $1141582 Director of Housing $1141582 Boards and Commissions Administrator $1093560 County Clerk $119,357 Deputy County Clerk $114,582 County Auditor $1195357 Section 2. Maximum Salaries. Section 1 sets forth the maximum salaries payable to the listed officers and employees. However, the respective appointing authority may set the salary of any new or existing non - elected appointee at a figure lower than the figure established for the position in this Resolution. Elected officers may voluntarily accept a salary lower than the maximum salary established by this Resolution for their position or may voluntarily forego accepting a salary. Article II. Salaries of the County Councilmembers Section 1. Effective at twelve o'clock meridian on December 1, 2016, as required by Kauai County Charter Section 29.05, the annual salaries, payable semi - monthly, of the Kauai County Council shall be as follows: Council Chair Councilmembers $71,033 $63,140 Article III. Severability. If any portion or portions of this Resolution are rejected by a vote of five (5) or more councilmembers, the other provisions of this resolution shall not be affected thereby. If the application of this Resolution or any of its provisions to any persons or circumstance is held invalid by a court of law, the application of this resolution and its provisions to other persons or circumstances shall not be affected thereby. Article IV. Transmittal of Salary Resolution. The County Clerk shall transmit to the Salary Commission, Mayor, Finance Director, and Human Resources Director a final approved copy of the resolution and note any rejected portions thereto within thirty (30) days after the effective date of this resolution. Adopted by the Salary Commission at its meeting on February 9, 2016: 2 Charles King, Chair Sheri Kunioka -Volz, Vice Chair Robert Crowell Michael Machado Camilla Matsumoto Lenie Nishihira Jo Ann Shimamoto K County of Kauai Salary Commission 2016 Recommendations Following the example of past commissions, we view ourselves as part of a collaborative compensation system with the goal of attracting and retaining public servants of the highest caliber and quality to provide optimum service and lead the County of Kauai. We recognize that our recommendations merely set maximum limits and defer to managers on the ground to determine where their direct reports should fall under those limits. Salaries for similar positions from around the State have been considered as well as economics, i.e. cost of living. Looking at data outside the state was considered, but rejected as not germane. Cost considerations precluded us from seeking outside consultants. We relied on data obtained for us by the Human Resources department and other public records. Public testimony has been welcome at all our meetings. For your information and perusal we are including various Exhibits of information gathered and considered. (Decide and call out exhibits) In the recent past, due to economic concerns, the salary commission has recommended no increase or only a very few targeted increases in executive compensation. When this commission recommended a general increase in November of 2014 (2014 -1), it was rejected by the County Council. We understand now that, in our diligence to meet deadlines, we were asking a decision be made before all relevant budget data was available to the Council. This year we are attempting to time our submission to better suit the budget deliberation cycle of the County Council. Having reviewed the data & records, we recommend increases of, in most cases, 11.2 %, representing the accumulated CPI increases in Honolulu (BLS.gov) since 2010. Again, this represents the cumulative increases in the Consumer Price Index for each of the years 2010 -14 as depicted below. In other words, this simply gets folks back to where their dollar was in 2010. Honolulu CPI Increases (BLS.gov) 2010 2011 2012 2013 2014 Total 13% 4.0% 2.0% 197% 1.8% 111% Increases higher than the norm are recommended for various positions due either to increased responsibilities, educational and /or licensing requirements or equity within the State. While one reason for the rejection of last year's proposal from this commission was timing, another might have been lack of information. Attempting to forestall that, we are providing Exhibit A Titled 2016 Salary Recommendations COUNTY OF KAUAI . For ease of reading and comparison, we have organized positions in Tiers. These tiers, in effect, existed previously where certain managers had the same salary. They have simply been called out and identified here as tiers. Also, where before there were five sets (tiers) of managers at the same maximum pay level, there are now four tiers. Deviation from the 11.2% CPI is explained by movement between these tiers and other circumstances, which are pointed out below. Change in Tiers Director of Human Resources: shift to Tier III from V Director of Economic Development: shift to Tier IV from III Director of Liquor Control: shift to Tier IV from III Boards & Commissions Administrator: elimination of Tier V; changed to IV Housing Director: shift to Tier III Other Higher Increases Mayor: Increase to level of lowest paid mayor in the State of Hawaii. First Deputy County Attorney: Deputy Engineer— Public Works: Deputy Engineer —Water Dept.: Deputy Director of Finance: Deputy Director of Parks & Recreation: Deputy County Clerk: Deputy County Attorneys: Lower Increases County Clerk: increase received 12/1/09 County Auditor: increase received 12/1/09 Prosecuting Attorney: Lower increase to bring in line with County Attorney's office. First Deputy Prosecuting Attorney: Lower increase to bring in line with County Attorney's office Police Chief & Deputy: Increase received 7/2012 Fire Chief & Deputy: Increase received 7/2012 The Commission took its charge seriously and has spent many hours questioning the administration, reviewing, discussing and considering information requested and provided to determine the best course to recommend for the County of Kaua'i. We have considered existing compensations at the other Counties in the State and solicited commentary from them. We submit this Resolution in good faith with the intention to secure and maintain a rigorous and robust upper level work -force skilled, prepared, and willing to serve a community that is both the Kauai we have known and loved for decades and one that has changed significantly in even the past ten years. Kauai is on the map and now known globally more than ever. Demographics in our population and how we utilize the island's private and public infrastructure and lands have expanded as data has shown. We are now a place where people from around the world come to live and not just visit. Our business community and how we earn a living is no longer limited but more diverse than we can see daily. More people use our outdoors and waters for recreation. We are finding that we need to develop strategies for keeping our island healthy, secure and safe in a time when larger forces, such as climate change have become huge influences in how we live. There is more change to come. It is imperative that we effectively orchestrate all services with the highest level of public service expertise in place. An overriding consideration was fairness for our County administration and the desire to retain their services. At first blush this is a sizeable increase in total possible outlay until we stop and think that the last time the entire administration pay structure was increased was 12/1/08. This total increase of roughly 12 %, then, translates to only a 1.6% for each year. To reiterate, our charge is to propose simply the maximum pay for each position. We are relying on the administration to determine performance and the appropriate pay given that ceiling. In all, while the increase recommended is large on a percentage basis, it is modest if the increases were taken year by year from the year when last increases were granted. i