HomeMy WebLinkAbout10-27-2010 Council Meeting Minutes
COUNCIL MEETING
October 27, 2010
The Council Meeting of the Council of the County of Kauai was called to
order by the Council Chair at the Council Chambers, 3371-A Wilcox Road, I;hu`e,
Kauai, on Wednesday, October 27, 2010 at 11:04 a.m., after which the following
members answered the call of the roll.
Honorable Tim Bynum
Honorable Dickie Chang
Honorable Jay Furfaro
Honorable Daryl W Kaneshiro
Honorable Lani T Kawahara
Honorable Derek S.K. Kawakami
Honorable Bill "Kaipo" Asing, Council Chair
Chair Asing: Can we have the first item please?
Mr Nakamura. First item is approval of the agenda.
APPROVAL OF AGENDA.
Mr Furfaro moved for approval of the agenda as circulated, seconded by Mr Chang,
and unanimously carried.
Chair Asing: Next item please
Mr Nakamura. Next matter is approval of the minutes of the
following meetings of the Council.
MINUTES of the following meetings of the Council:
Council Meeting of October 13, 2010
Public Hearing of October 13, 2010 re: Bill No. 2376
Mr Furfaro moved for approval of the minutes as circulated, seconded by
Mr Chang, and unanimously carried.
Chair Asing: Next item please.
Mr Nakamura. Next matters are communications for receipt
on page one (1) of the Council's agenda, communication C 2010-285, C 2010-286 and
C 2010-287
COMMUNICATIONS.
C 2010-285 Communication (10/04/2010) from the Chief, Building Division,
Department of Public Works, transmitting for Council information, the Building
Permit Reports for September 2010-
1) Building Permit Processing Report
2) Building Permit Estimated Value Summary
3) Building Permits Tracking Report
4) Building Permits Status
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COUNCIL MEETING October 27, 2010
Mr Chang moved to receive C 2010-285 for the record, seconded by Mr Kaneshiro,
and unanimously carried.
C 2010-286 Communication (10/06/2010) from the Chief, Engineering
Division, Department of Public Works, transmitting for Council consideration a
traffic resolution establishing no parking at any time along portions of Haleilio
Road and Apana Road, pursuant to the condition contained in Use Permit U-2008-
18, Variance Permit V-23008-6, and Class IV Zoning Permit Z-IV-2008-19, that
establishes an off-street parking lot away from the primary place of business
situated at TMK. 4-1-005-007 (Kayak Wailua LLC)• Mr Chang moved to receive
C 2010-286 for the record, seconded by Mr Kaneshiro, and unanimously carried.
C 2010-287 Communication (10/07/2010) from the County Auditor,
requesting Council approval to establish two (2) new positions, a Program Audit
Analyst V and a Program Support Technician in the Office of the County Auditor,
and to amend Ordinance No. B-2010-705, relating to the FY 2010-2011 Operating
Budget, by revising the surplus and appropriations estimated in the General Fund,
by appropriating $90,211.00 to the Office of the County Auditor to fund these
positions, associated personnel costs, and necessary office equipment: Mr Chang
moved to receive C 2010-287 for the record, seconded by Mr Kaneshiro, and
unanimously carried.
Chair Asing: Next item please.
Mr Nakamura. We're on page two (2) of the Council's
agenda, we have communication for receipt at the top of page two (2), C 2010-288.
C 2010-288 Statement of Condition of the County Treasury as of
August 30, 2010: Mr Chang moved to receive C 2010-288 for the record,
seconded by Mr Kaneshiro.
Chair Asing: Any discussion?
Mr Furfaro: Yes.
Chair Asing: Yes.
Mr Furfaro: Yes Mr Chair, I want to remind the treasury
that it is, we did get a commitment from them that quarterly they would be
available to us. it looks like the September report, so we can have some Q&A on
our earning power in those accounts.
Chair Asing: Thank you.
Mr Furfaro: So I would like to remind them of the next
report?
Chair Asing: Why don't we send a communication to that
effect. With that, any further discussion? If not, all those in favor say aye?
Councilmembers: Aye.
Chair Asing: Motion carries. Next item please.
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COUNCIL MEETING October 27, 2010
The motion to receive C 2010-288 for the record was then put, and
unanimously carried.
Mr Nakamura. Next matter is communication C 2010-289
C 2010-289 Communication (10/15/2010) from Councilmember Bynum,
requesting that the County Auditor be present at the October 27, 2010 Council
Meeting to discuss his proposed work plan (proposed audits) for Fiscal Year 2010-
2011.
Chair Asing: With that, I'd like to suspend the rules.
There being no objections, the rules were suspended.
Chair Asing: Councilmember Bynum.
Mr Bynum. Good morning Mr. Pasion, thank you very
much for being here today And the County of Kauai (the voters) created the Office
of the Auditor We've hired an Auditor, he's filling out his staff and presented a
work plan to us in July, I believe dated June 28, and I wanted to have this
opportunity for the Council and members of the public to have some awareness
about what the Auditor's plans are for the coming fiscal year and see if any of us
have questions. So I appreciate you being here today, Mr Pasion.
Chair Asing: With that.
ERNESTO G PASION, COUNTY AUDITOR. Chair Asing and
Councilmembers, good morning. For the record County Auditor Ernesto G Pasion
and with me are the members of the audit team, Lam Nakazawa and Ron Rawls.
Thank you for inviting me here to discuss the County Auditor's fiscal year 2010-
2011 work plan. The five (5) audits that are in fiscal year 2010-2011 are. the work
plan were taken from about twenty (20) potential audit topics, identified as
possibilities from suggestions by elected officials, employees, and citizens and from
research into audits conducted in other jurisdictions. Using a risk assessment
matrix, we prioritized the audits taking into consideration such factors as the
money effect of the audit subject on the county, whether the audit subject was a
high risk area, whether the audit scope was manageable, and whether we had
appropriate resources to conduct the audit. Section 32.02 sub (a) sub (3) of the
Kauai County Charter requires that before the commencement of each fiscal year,
the plan of the audits proposed to be conducted by the County Auditor during the
fiscal year shall be transmitted to the County Council for review and comment, but
not approval. I filed the work plan for fiscal year 2010-2011 with the Council on
June 29, 2010 July 1, 2010, the Council Chair requested the Councilmembers
review the plan and provide any comments by July 14, 2010 Citizens are
understandably concerned about whether the county is doing everything that it can
to keep risks and costs under control. The work plan is intended to provide factual
information about county programs to assist the county in avoiding inefficiencies
and risks in its programs and practices. One of the five audits involved the review
of capital project implementation.
We will be using two test projects to determine one, if project management
plans and good management practices were followed. Two, whether the
responsibilities were performed. Three, whether the communication processes were
effective? Four, whether management processes to address risk and scope change
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COUNCIL MEETING October 27, 2010
were followed. And five, were the budgets and schedules effectively managed. The
test projects are one, a road maintenance project for prior year, and two, Kaiakea
Fire Station construction project. These projects were selected because they are
relatively high costs projects. We will be analyzing implementation of the test
projects, identifying successes, and making recommendations when necessary We
will also determine whether the concerns in the prior audit, the very first
performance audit done in the county, which was conducted by an outside audit
firm involving another capital project, the Kilauea gym, had been addressed. In
order to secure the technical analyses needed for this audit, we conducted a
competitive procurement for engineering consulting services.
Another audit will also use a test sample of County departments to evaluate
the County's budget process to determine whether estimated revenues are being
accurately calculated and whether projected expenditures are realistic. We will also
review the County's procedures for seeing if departments are within budgets, are
reporting differences or variances, and are investigating whether action should be
taken. This will require the analyses of the Comprehensive Annual Financial
Report of the County for the last five (5) years. Finally, we will compare the
County's budget practices with the Government Finance Officers Association's
Recommended Budget Practices to recognize the areas where practices are being
followed and identify opportunities for improvement.
Another audit will evaluate the internal controls designed to make sure fuel
consumption is authorized and used for valid County business purposes.
Additionally, the audit will review the County's procedures for monitoring fuel
consumption and costs, including identification and investigation of unusual
charges. Fuel costs for the County are significant and fuel is a commodity that is
susceptible to theft. Accordingly, fuel consumption should be prudently managed
and controlled.
I would like to note one benefit of a permanent audit presence in the County
means that management can be reminded of its commitment to implementing
recommendations to improve effectiveness and efficiency In another audit, we will
be checking to see whether the County has implemented the recommendations for
reducing energy costs by the Cost Control Commission, in 2008 and 2009, as well as
the recommendations in the 2007 administration study on energy costs.
The last audit in our fiscal year 2010-2011 work plan is an audit on the
effects of the County's partial hiring freeze, which began in December 2008. Our
objectives in this audit are to find out whether the monetary savings expected from
the hiring freeze have been achieved and whether any internal controls are being
affected because positions providing checks and balances are not filled. Quantifying
the results of the partial hiring freeze provides information for county decision
makers and the public about the effectiveness of the freeze. Assessing the effects of
the freeze on internal controls should also be of interest to our County leaders since
they, like the heads of corporations, are expected to take responsibility for making
sure internal controls are in place to prevent fraud and abuse.
We plan to complete three (3) to five (5) performance audits during the fiscal
year, subject to any changes that might be made because of audit risk. Factors that
may affect completion of audits include unforeseen conditions that impair our
ability to conduct a complete audit, such as the availability of necessary records.
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COUNCIL MEETING October 27, 2010
In addition to the performance audits, an independent financial statement
audit will be conducted by a CPA firm. The audit consists of the overall financial
audit of the County and the Single Audit of federally-funded programs.
The work plan also includes two (2) pre-audits assessments. Pre-audit
assessments are conducted to generate information and ideas to better understand
the audit subject area, develop the audit objectives, and assess audit risks.
One (1) pre-audit assessment will concern an audit that will look into how the
conditions imposed by the Planning Commission as prerequisites to approvals are
monitored and enforced. The second pre-audit assessment was requested by the
Cost Control Commission, and will look into an audit regarding the feasibility of
consolidating personnel functions.
We are also planning a non-audit project during fiscal year 2010-2011. This
non-audit project is a citizen-friendly report that summarizes the results of the
consolidated annual financial report of the County's financial condition in
non-technical language. The project is intended to fulfill another role the County
Auditor can play educating the community about the costs, achievements, and
challenges of our County
Your support of the audit work plan for the fiscal year 2010-2011 is greatly
appreciated. Thank you.
Chair Asing: Thank you. With that, Councilmember
Bynum.
Mr Bynum. So, you're Chairing this yeah?
Chair Asing: Yes.
Mr Bynum. Okay So thank you very much Ernie for
making this presentation. I just wanted to maybe ask a few questions and highlight
a couple of the things, just make sure I have it right and that the community
understands. In your presentation, you said that you had recommendations or
suggestions, over twenty (20), for different areas that the Office of Auditor could
focus on?
Mr Pasion. Yes.
Mr Bynum. And you made your selection from those
suggestions and also, from your own research into what other audit departments
are doing. So I just, for my understanding of your offices, that it's independent that
Councilmembers, members of the public, Cost Control Commission, whoever, can
make suggestions to your office, but the final decision of what you choose to audit is
yours. Do I have that correct?
Mr Pasion. That's correct.
Mr Furfaro: Excuse me, Mr Bynum. He said something
I just want to make sure we're clear on because you didn't cover in your question,
this body by Resolution can mandate something to be added.
Mr Pasion. Well through a Resolution, for example.
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COUNCIL MEETING October 27, 2010
Mr Furfaro: That's what I dust said. by Resolution.
Mr Pasion. For example if a. members of the
community has concerns about a particular issue, they would. one way they could
have it part of our audit included would be they would work with one (1) or two (2)
of you in the Council, okay? Because you are elected by them, by us, to represent
them and then they would work with one (1) or two (2) of you to introduce a
Resolution regarding an issue and then you know if the Resolution is passed then
that item would be included in the, it would be one (1) of those that would be
included in our work plan. Okay and that's in addition to what we consider in our
office to be of critical issue to be part of our audit work plan.
Mr Bynum. Right. So with the suggestions that you
receive from various sources, your office makes a decision what to audit.
Additionally to that if the majority of the Council passes a Resolution then your
office would be required to address that audit issue. Is that correct?
Mr Pasion. That's correct. Provided that we get the
adequate resources to do such an audit.
Mr Bynum. Right.
Mr Furfaro: Thank you Mr Bynum for letting me clarify
that.
Mr Bynum. Okay, sure.
Mr Furfaro: We can initiate an item.
Mr Bynum. But in terms of this work plan, the choices
were made from those suggestions right?
Mr Pasion. (Inaudible)
Mr Bynum. That's an important clarification. And that's
a good way for democracy to work, right?
Mr Pasion. Right and since there was no Resolution yet,
so basically what we put together is like I said coming from the Cost Control
Commission and you know from citizens.
Mr Bynum. And then from the plan that you just
presented, one of the first things you talked about was the capital improvements
implementation of capital improvement projects.
Mr Pasion. Right.
Mr Bynum. I just want to clarify that you chose two (2)
about roadways and about Kaiakea Fire Station, but that doesn't mean you're only
looking at that, you are using that as a snapshot or mechanism to look at how the
programs are implemented, is that correct?
Mr Pasion. That is correct.
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COUNCIL MEETING October 27, 2010
Mr Bynum. I know one of the initial questions I asked
you after we received this plan is why did you pick those and you have answered
that today That they are high-value.
Mr Pasion. Right.
Mr Bynum. But that is a way to look at the whole
process, not dust those particular projects. Kind of like it is twofold, do I have that
right?
Mr Pasion. We would look at how we do things in the
County and then look at what our best practices that are being done in our
jurisdictions and then we could recommend we adopt best practice used in other
jurisdictions to improve our process.
Mr Bynum. And so one of the things that I think we can
count on from your office is that when audits are complete, that we'll get a report
and there will be a follow-up So we'll understand the outcomes of the audits, is
that correct?
Mr Pasion. That's correct and it will also be a public
document. The final audits issued from our office will be published on the website.
We have our website available to the public.
Mr Bynum. So there will be disclosure of those reports to
the public?
Mr Pasion. Right
Mr Bynum. And I bring that up, because one of my
concerns and I have made a request that I know we will eventually fulfill that the
auditors who conducted the Kilauea gym audit present at Council to present that
because I have a concern that was several years ago and there was a time, until
your office was created, wasn't presented to the Council and wasn't presented to the
departments. So I think at a future meeting we're going to have the consultants
who conducted audits present to us, is that correct?
Mr Pasion. Yes, the last time we checked with them,
they were busy with other jurisdictions and the Department of Water audit too is
that they didn't have time. They were available before, but right now they are busy
So they will be available the first thing next year
Mr Bynum. Right and I appreciate that, because there
was a lot of public attention about that Kilauea gym audit, a lot of support for
doing it, and I heard from Public Works that they went through the audit process
and met with auditors and talked to them, and then a couple of years went by and
they never got any feedback. I mean the whole purpose of the audit is to say how
are you doing, to make recommendation for improvement, and that didn't occur for
a long time. So I want to acknowledge like after your office was created that you got
that, audit to Public Works, to the intended recipient, so they could see the results
of that and why it took that long, I don't understand. But I wanted to thank you for
that and let the departments and let the public know that we do audits so we can
improve our functioning, and our employees work really hard, and I think do a
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COUNCIL MEETING October 27, 2010
really good job, by and large, but there can be some trepidation about instituting
audits. It's like somebody looking over your shoulder and saying hey, did you do it
correctly? I am sure why the voters overwhelming approved this office because we
think it's a good thing. I hope that our employees understand that that is a good
thing that it isn't there to necessarily find problems but to help things work more
efficiently and to improve our operations. So moving on my questions if that's okay?
Chair Asing: Sure go ahead.
Mr Bynum. You mentioned in your presentation today
that one of the roles is to see that management does pay some attention to
recommendations when they are made, and so you are going to look at the energy
consumption, because there were recommendations from consultants?
Mr Pasion: Cost Control Commission.
Mr Bynum. From the Cost Control Commission.
Mr Pasion. Commission, yes.
Mr Bynum. Because I know this Council really supported
the other voter initiative over the past few years is the creation of the Boards and
Commission office and the Cost Control Commission has real meat to it now, when
it didn't in the past. But if they make recommendations, and then they are not
followed through, then it's just another paper tiger, so to speak. So I think that is
another role. That is what I had hoped today that we can all understand and make
sure that my understandings are correct and that the public understands what will
we get from having an Auditor I think it will help increase our County's
accountability Do I have that right?
Mr Pasion. That is correct. Transparency too.
Mr Bynum. And you've given a great example here of
that. My last set of questions had to do with in your audit plan that was distributed
to Councilmembers in June, one (1) of them was a review and assessment of the
county's cost related to furloughs, and in your presentation today talked about one
of the other cost controls that we've done about having a partial hiring freeze. One
of the things that the Administration did to respond to the changing economic
conditions was to restrict new hires, and the Council took action as well in terms of
dollar-funding positions in the budget. So basically saying that hey, this position
exists, we may need it, but because of these difficult times we're going to leave this
position unfilled in order to reduce our costs. So do you still intend to help the
Council do a review of the furlough program and its impact on the community and
also in the County's budget.
Mr Pasion. Yes. I know there is a budget proviso for the
current budget that there will be an evaluation by the Finance Director and
Personnel Director about the furlough by the end of this calendar year And we are
not going to be doing anything before then if we don't want to preclude what they
are going to do. Our intended audit of that will be more comprehensive, I would
say We looked at the furlough done for the State of California, done by UC
Berkeley, and we'll attempt to mirror that kind of audit analysis of our furlough and
what was the impact on the local economy What would be like what they had..
and what would be the savings. Just like what they did in California. They
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COUNCIL MEETING October 27, 2010
thought they had so much savings in the furlough, but they did not achieve such
savings. So I would want to go further than that, because we're going to do an audit
of it after the analysis of the Finance Director and Personnel Director
Mr Bynum. So regardless of whether the Council
chooses to continue with furloughs or the Council with the Administration chooses
to continue or modify or end, you're going to help us do an analysis of whether the
furloughs achieved its objective and the impact on the broader community?
Mr Pasion. We will come out with data that would come
from the audit that would show the results of the furlough.
Mr Bynum. So this Council would be able to say compare
the hiring freeze proposal with furloughs and see which one was more efficient or
that kind of thing?
Mr Pasion. Well the hiring freeze is separate from the
furlough, because the hiring freeze was implemented December of 2008 before the
furlough took over July 1st of this year So we'll be looking at the hiring freeze and
the impacts on internal controls. For example, let's say if you have a staff of two (2),
one is requisitioner and one is approver, and if the approver's position was vacant
and say they retired and it was not filled, you have one in position and then you are
kind of jeopardizing the controls and subject to things that could be irregular
Mr Bynum. Just sticking with furloughs for a minute, I
know I have a lot of unanswered questions and so I just want to say that I really
support that we do an analysis of furloughs in terms of how it impacted overtime.
One of my concerns is that we have people on furlough days, but then we have
needs that we have to fulfill as a County and we may be paying employees time and
a half when they would have been getting straight time if we hadn't done the
furloughs. So that is an example. But also, I hear you saying to look at the impact
on the broader economy
You know, if you take this many dollars out of the local economy, or if you are
an employee and your take home pay is reduced by x amount, how that affects your
spending behavior in the private sector as well. So that is part of your analysis as
well? Is that correct?
Mr Pasion. That is correct.
Mr Bynum. In closing, I really appreciate you being here
today and answering the questions that I had. I could ask a bunch more, but I
won't belabor it now but when I read this plan and in my dialog with you, there are
so many areas we could look at but in your presentation today, it was very well-
balanced.
Mr Pasion. Thank you.
Mr Bynum. You are looking at key areas. You are
looking at costs and you are looking at whether we followed through on previous
recommendations. That existed, for example in the Kilauea gym audit. I want an
overview of that, which I think is very long overdue, to have an overview of that one
performance audit we have done prior to the creation of the audit. But you are also
using that to say, hey, that audit had recommendations and they have been out
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COUNCIL MEETING October 27, 2010
there a while. Did we follow through? Do we intend to follow through? So that's
another element and when I say "balance" you look at it and help to educate us and
the public about the potential investment we have made in the Office of the Auditor
So I really like your work plan.
Mr Pasion. Thank you.
Mr Bynum. And I recognize that the thought that went
into it. It seems pretty ambitious, too and I like that. So if you come back and say,
you know, it was pretty ambitious and we did this and this and this, but we're not
completed with this, you are going to have some understanding from me, anyway
So I want to make sure that we provide the resources. We made a very large
investment in this department and we want to make sure we get a return on this
investment by implementing these things and having a more efficient government.
So I'm very appreciative of your presentation today Thank you very much.
Mr Pasion. Thank you.
Chair Asing: Thank you. With that, Councilmember
Kawakami.
Mr Kawakami. Thank you, Council Chair and thank you
Ernie. Really quick, two (2) questions, your projection is that you will be able to
complete three (3) to five (5) performance audits with your current staffing levels
now?
Mr Pasion. Yes. Right now as a new Department, you go
through some starting difficulties being a new department, so we are a little bit
behind. I will be honest with you, because getting audits started, they will be late,
but we're making strides. So in the agenda today we're also coming here to say that
at the beginning of the year we submitted a budget, but then our budget was cut.
Our key function was taken out of our budget, but that is another agenda item that
we'll be discussing later We plan on getting three (3) to five (5) and if not, we'll
have reasons why But we are planning on completing three (3) to five (5)
Mr Kawakami: Okay Second question is thank you for the
list of proposed audits. How are you going to prioritize this and the only reason I
ask and I wanted to ask this, because I noticed that we're going to audit the
county's fuel cost. It's very important, but in the relative scope of things, I think our
county spends about roughly about $1 million in an $147 million operating budget,
it accounts for $1 million, which is less than 1%, maybe like 7%. So how do we
prioritize and how do you determine it? If you can only complete three (3) just for
example, how will you prioritize which ones? Because I noticed you have some that
are high cost like Kaiakea and some that are relatively low-cost to the county, such
as fuel cost? So how do you go down the list and determine which you will knock
down first?
Mr Pasion. We looked at, for example, the fuel is a
commodity So we would look at if it's a commodity subjected to theft and
irregularity, we would look at that right away before it gets bigger and make
recommendations on controls, just like jurisdictions have done.
Mr Kawakami.. Thank you, Council Chair
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COUNCIL MEETING October 27, 2010
Chair Asing: Councilmember Furfaro.
Mr Furfaro• This is partially to answer Mr Bynum's
question and also dust to reassure me. As a past Finance Chair, I reviewed the first
draft of the Kilauea gym audit and I submitted comments about two (2) years ago
that dealt with some standard practices and relatively, it was something that I
would hope we would give to Building and Public Works because they were good
recommendations. But my understanding is no one has taken that, because we
switched auditors. And are we encouraging these individuals to get back, because I
would certainly like to submit my notes from that audit to the rest of this body, so
that they could at least know that someone in this committee, on this council, as
Finance Chair, reviewed that draft report.
Mr Pasion. Vice Chair, we are in constant
communication with KMH, the auditors who did the Kilauea gym. When we took
over the new office and when we issued the draft before it became final, because it
has to go to the auditee for review and at the time they were ready, but then now
we're in a situation where they are all busy doing other jurisdictions' audits and
also our Department of Water and so they are not available until next year So we
are, we're going to bring them in.
Mr Furfaro Let me restate it, Ernie. I was the Finance
Chair for the first six (6) years on this Council. I made comments on that draft, it
hasn't moved because KMH, we changed its auditors and brought in new auditors.
Is it possible?
Mr Pasion. But they are not. KMH did a separate
audit. The auditors that we have now are (Inaudible) out of Pittsburg.
Mr Furfaro• I understand that?
Mr Pasion. They are not involved with this audit.
Mr Furfaro: Ernie, I'm trying to get to the point that the
documents I shared with you with my comments almost two (2) years ago, can we
share those with the rest of the Councilmembers?
Mr Pasion. Eventually when it's going to come up maybe
in January when it will be an agenda item Vice Chair See you had your comments
but the Auditee has. it has to get the input from the Auditee first. You were not
an auditee.
Mr Furfaro: Yes, I'm sorry to say, I was the Chairman of
the Audit Committee that was made up of Councilmember Tokicka, Kaipo Asing
and myself and I Chaired that as Finance Director My comments back to the
Auditors have gone almost two (2) years ago, can we share those draft comments
with the rest of this body and I've heard your answer, your answer is since they
didn't make the agenda, you would prefer that they come back when it's complete?
When they have finalize their audit?
Mr Pasion. They have finalized it already Vice Chair
So when they come in, say January, then you can make your comments. The
comments that you provided to them, and ask them about what they thought about
it? That is what they do
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COUNCIL MEETING October 27, 2010
Mr Furfaro. I understand your answer The answer is no,
wait until the whole piece is back and I just want to make sure that everybody is
clear that there were some constructive comments from me two (2) years ago that
went back to them and I'm anxious to see changes made based on my comments and
I'm anxious to see that in front of the full Council. This comes with the territory of
being the County's Auditor Mr Kawakami raised the question about prioritizing
and you made mention in your presentation, we got this report here, but where is
the audit matrix that identifies these items as high, moderate or low priority? You
made reference there was a matrix. Are we going to be able to see that matrix?
Mr Pasion. That is I would say looking at other
jurisdictions like a preparatory stuff that belongs to our office.
Mr Furfaro: Are you going to provide us an audit matrix
so that we answered that question, what was high priority, what was low? For
example, for me, $1 million in fuel cost is a lower priority than 78% of payroll and
benefits. Payroll and benefits should be up here as a high priority
Mr Pasion. Vice Chair, if you look at our five (5) key
audit items in the work plan, one of them addresses that. It will be part of the
budget.
Mr Furfaro: Will we in the future get a matrix on
priorities? In future years, will we get a matrix of priorities?
Mr Pasion. I would like to get back to you on that one.
Mr Furfaro: Thank you. I can appreciate that. Also in
2003-2004, the Council had an interaction about a Resolution about how we should
handle audits and it is in a document here, have you and your staff been able to
revisit that structure or that recommendation in that Resolution as it relates to how
this report should be done?
Mr Pasion. We are complying with government audit
standards. That is what we do.
Mr Furfaro• Okay So this book here that establishes and
by Resolution, how it should be done, which really, in general, this piece manages or
references more along the line of risk assessment but you're saying that your
department will move in the future on more the yellow book standard?
Mr Pasion. That is correct.
Mr Furfaro: Okay and that's your decision. I just want to
know So this document, 2002-2004 may be of service, but is not necessarily the
policy and the game plan?
Mr Pasion. That's correct. We could use it as a reference
but not.
Mr Furfaro: I would like to make sure that you have this
as a reference, but I think for all of us to understand, a matrix that measures
priorities also measures risk, but you're saying moving forward in your department,
13
COUNCIL MEETING October 27, 2010
of which you are the manager of, director of, you are going to use the yellow book
guides for creating the plan?
Mr. Pasion. That's correct. We have a copy of that Vice
Chair
Chair Asing: I believe Councilmember Furfaro that was in
his first report to us that he was going to use the yellow book standard.
Mr Furfaro: Right and many of the pieces that are in the
yellow book standard. But I have been on the Council since 2002 and this is the
2002-2004 Resolution, and I just want to know you're going to use it as a tool?
Mr Pasion. Yeah we have a copy of that in our office and
we will be using it as a reference, but in general, we'll use the yellow book as the
guideline
Mr Furfaro: Thank you. We do now have an energy
sustainibility plan. Will your office be reviewing that as general practice as it
relates to energy management?
Mr Pasion. We have a. we started an energy audit. It's
ongoing right now, and we would be remiss if we were not going to look at what is
available
Mr Furfaro I appreciate that comment. Thank you very
much. And also, we have another agenda item over here coming up that will deal
with the furlough portions, and I heard your comments earlier about your office's
role as it relates to kind of working parallel on what was the net impact of the
furloughs? And did we benefit with the furloughs or did we lose it based on the fact
that we had to use premium pay to accomplish many of the jobs? Is that what I am
to understand this item? It's your fifth (5th) bullet point that says, "audit the
county's programs to manage employee costs." Would that be in the scope of that
bullet point?
Mr Pasion. That would be.
Mr Furfaro And on the items that deal with I think what
Mr Bynum brought up, the action we took to freeze certain positions, I think we
have fifty-three (53) of them frozen, will that be covered in that piece?
Mr Pasion: Yes.
Mr Furfaro Yes? Okay I do want to let you know that
as we look at the proviso pieces here, that we put in the budget were pretty much
worded by myself. We have Section thirty-two (32) which the Director of Finance
will be consulting with Personnel Services and conducting a comprehensive
assessment of the furlough plan. How are you going to get invited to that meeting?
Mr. Pasion. We don't want to be part of it.
Mr Furfaro You DON'T want to be part of it?
Mr Pasion. Not at all.
14
COUNCIL MEETING October 27, 2010
Mr Furfaro• (Inaudible)
Mr Pasion. We'll have an independent guest.
Mr Furfaro• Okay And then another piece I put in there,
which is also referenced in my May 3rd memorandum, prior to the budget and
budget considerations, I had talked about the fact that we would like the
Administration to come up with a draft policy that addresses the utilization the
budgetary reserves. In other words, policy that we have often talked about, so that
it is very transparent. And I am very pleased to report that I do now have a piece of
correspondence that I will share with the other Councilmembers that on that
budgetary reserve policy, the Chair of the Finance Director is willing to meet with
me next week to look at some sample policies. In a good year, it's important for us
to have a reserve of 10%. In the tough years they actually recommend 15% of the
total budget. Would you like to be part of that discussion or would you like to keep
it separate?
Mr Pasion. We would like to be separate from that. If
you remember
Mr Furfaro: You just have so much to offer though, Ernie.
Mr Pasion. Remember we issued you a copy of
recommended budget practices.
Mr Furfaro: Yes.
Mr Pasion. And in that recommended practices are
different good stuff that even the City of San Diego found themselves inadequate.
Mr Furfaro: They found themselves broke is what it
amounts to
Mr Pasion. I don't know about that.
Mr Furfaro: Inadequate.
Mr Pasion. Inadequate as far as their budgetary
practices and controls and things like that.
i
Mr Furfaro• Do you have a copy of my May 3rd comments
regarding the budget and where I make recommendations that we should have a
reserve policy that needs to be approached in a systematic way? And that generally
accepted accounting principles is a minimum of 10%, but as high as 15% being
earmarked by the operating budget. Would you generally agree with that?
Mr Pasion. Vice Chair, I don't have a copy of that but
we. I don't want to preclude the audit of the budgeting process because that will be
part of it.
Mr Furfaro: Okay So you will be following up on that,
but we do have an agreement that we need to work on a policy, so that this reserve
is transparent?
15
COUNCIL MEETING October 27, 2010
Mr Pasion. All we do is we make recommendations. As
far as implementations, it's going to be the role of the Administration and the
Council.
Mr Furfaro: I absolutely understand our role, but I'm
looking for some guidelines and you have always been so good about sharing other
municipalities' policies and since I have that upcoming meeting that it's possible to
develop a plan. And hopefully, it's part of that discussion in December with the
Administration about our reserve
Mr Pasion. Okay What I will do is. when is your
meeting Vice Chair with the?
Mr Furfaro: I think it's the 4th or the 3rd I can get it to
you.
Mr Pasion. What I could do is I could look at one
jurisdiction, I believe it's the City of Denver that we looked into and we could
provide that to you.
Mr Furfaro: I would appreciate that. I know that was a
lot of statements and comments but it's not easy being the County Auditor
Mr Pasion. I guess it comes with the territory
Mr Furfaro• But I can tell you how much. how
delighted I am but some of these things I mentioned, hopefully we can be reviewing
and implementing them in December
Mr Pasion. Of course, all we can do is recommend and
then it's up to you guys to implement. We recommend and you implement.
Mr Furfaro. Well I would take your recommendations
and highly endorse them.
Mr Pasion. Thank you.
Mr Furfaro: Thank you Mr Chair
Chair Asing: I just have a comment. I think
Councilmember Furfaro, in your line of questioning, I believe I got the impression
anyway that the Auditor's Office is trying to do its best to be independent.
Mr Furfaro: I clearly understand that Mr Chairman, but
I need some information from the Auditor's Office. I don't need numbers thrown in
front of me and not understand their business strategy to get there Obviously it
starts with having a matrix. What are your priorities? That is common in any audit
I've done in my business career Yes, I realize you are independent, but at the same
time, I want to make sure that Mr Bynum understood my question that if we have
something that we really are wanting to audit, that we can implement a Resolution
with four (4) people that want to pursue an item and that is your mandate to take
that on. You can come back to us and say there's going to be extra cost.
16
COUNCIL MEETING October 27, 2010
Mr Pasion. That's right.
Mr Furfaro. Right?
Mr Pasion. That's right.
Mr Furfaro. But I want to make sure that we all
understand that we have that privilege.
Mr Pasion. I believe you have the understanding that
when you make Resolutions for us to audit, make sure we also have provided the
adequate resources to conduct that audit.
Mr Furfaro: Absolutely and I think as we get into that
discussion, right now be a little premature to see what kind of staffing we might
add based on the fact that we're in furloughs. And I want to evaluate, like
Mr Bynum, the whole effectiveness of that in December I don't think it would be
prudent for us to add here a finalized plan while we're looking at issues here that
are actually costing us premium dollars, because we have people on furloughs or
have the day off. So Mr Chair, I want you to know, in the business that I have been
in, I have in fact dealt with many, many audits and I don't think Mr Pasion felt
that my questions were out of line. I think they were along the line of what we
should expect from an Audit Department. Would you agree with that? If you don't,
tell me you don't.
Mr Pasion. Well, I would say that role of auditing in the
public sector is much different from auditing in the private sector Especially in the
private sector, you don't have the different practice of government that could be
opposing or pro or in favor of the audit. In the private sector when the Board of
Directors say and talk to the CEO and his or her managers, this is what we would
like done and it's done. In the public sector, you have.
Mr Furfaro: I understand.
Mr Pasion. Different branches of government that might
not agree.
Mr Furfaro: From a management company, there is also
a group of owners of a hotel or an asset and they have a different standard. We
should set our standards high Ernie
Mr Pasion: I agree.
Mr Furfaro. Thank you. Thank you Mr Chair
Chair Asing: Any further questions? Councilmember
Kawahara.
Ms. Kawahara. Thank you, Chair Good morning Ernie,
again and I'm glad to see you up here and discussing the County Auditor's plans. I
got a little worried whether Councilmembers were asking how you would be setting
priorities and I wasn't sure if I understood the answers. You were going to consider
giving us a list of priorities and how we have the list of actual projects that you
want to do, but we don't know in what priority you placed each item, is that correct?
17
COUNCIL MEETING October 27, 2010
Mr Pasion. We were going to do all of them. Of the five
(5) audit items that we submitted, fuel is ongoing. And energy is ongoing. We
haven't started budget yet and we haven t started on the hiring freeze yet and we
haven't started the furlough yet.
Ms. Kawahara. But then.
Mr Pasion. But we have secured a professional
economist to help us with the hiring and furlough and we have secured the services
of a professional engineering consulting services for the capital budget
management.
Mr Kawahara. Okay So your intent is to complete the
whole list of projects?
Mr Pasion. We hope and pray Kindly pray for us.
Ms. Kawahara. I'm hearing from the Council that there are
some.
Mr Pasion. Kindly pray for us, because we don't want to
be (Inaudible)
Ms. Kawahara. Yes and I'm also getting a clear message that
you can only recommend.
Mr Pasion. Yes. We provide the facts and we
recommend, and implementation is your ballgame.
Ms. Kawahara. In regards to the meeting that
Councilmember Furfaro was speaking about with the Administration and the
Finance Director, I'm pretty sure you said that they have receive. the
Administration has received the general accounting standards for reserves and you
would have submitted that to the Administration already, right?
Mr Pasion. No I didn't say that. what I understood.
Ms. Kawahara. I mean in general, the package you have
already submitted to Administration and us is what is a general accounting
standard practice especially for unassigned reserves?
Mr Pasion. No What the question was that the Vice
Chair was going to have a meeting with Director of Finance to look at establishing
reserve policy My answer to that is that would be covered by the audit on the way
we do budgets. However, because he is going to have a meeting soon, we could look
at different jurisdictions and what they have and provide it to him.
Ms. Kawahara. Okay
Mr Pasion. Okay and that's aside from what we're going
to do. So hopefully, when we do ours and they look at other jurisdictions, they
would be more open about adapting such policies in the future
18
COUNCIL MEETING October 27, 2010
Ms. Kawahara. Hopefully, hopefully they will overlap and
have the same goals.
Mr Pasion. All we can do is provide the information and
research on how things are done and how we do things and things like that and
compare that to best practices. Then we present it to the Administration and
Council and will come with recommendations and if it's good for the community
Ms. Kawahara. Well, I'm looking forward to that and that
work with the work Councilmember Furfaro is going to do, because I also agree the
unassigned reserve issue for our budget is something that needs to be addressed,
especially discussing furloughs and whether or not they need to be taken. That is a
major concern and I'm glad you will look into it and put a stamp of approval from
the auditor that says, with our reserves that we have now, it may be too high or
whatever the standard would be. And we would like to target a certain percentage
for that. The other one I wanted to discuss with you was the review and assessment
of feasibility of consolidating personnel functions, pre-audit survey If you could tell
me a little bit about that and a little bit about how you will go about doing that and
what resources you will use? Will you be looking at the report that the Cost Control
Commission did on personnel functions?
Mr Pasion. Yes that was recommendation from the Cost
Control Commission and as a matter of fact, there was a study done under, I think,
Baptiste Administration. We are going to look into that. Right now we have, by
Charter we have the Department of Personnel Services set up according to Charter
But because they are doing the function that are embodied in the charter, I guess
the Cost Control Commission would like to see more a comprehensive organization,
that only looks into hiring practices and things like that, but overall its HR
management. The fact that we have each Department that basically has its own
personnel function and I guess they look at what are the economies of scale and
benefits of having a more centralized. That way every department has the same
forms and approaches and things to deal with different kinds of issues.
Ms. Kawahara. And that is something that you're going to be
looking at?
Mr Pasion. That is correct.
Ms. Kawahara. Along with the Cost Commission had looked
at.
Mr Pasion: That's correct. We will be looking at other
jurisdictions too on what they have.
Ms. Kawahara. I'm looking forward to that. I'm also
wondering if you are doing an analysis of the statement that's it's in the Charter as
a Personnel Department, how would it work to make it a Human Resources
Department? Will you be providing analysis on how that would work?
Mr Pasion. We'll try
Ms. Kawahara. Okay That's a good answer Also will you
work with the County Attorney's Office in looking at the risks and costs of one or
the other?
19
COUNCIL MEETING October 27, 2010
Mr Pasion. We always work with the County Attorney
Ms. Kawahara. And you will be evaluating the costs and the
risks that we face without one as a comprehensive resource department or resource
division?
Mr Pasion. We will consult with the County Attorney as
necessary and we continue to work with County Attorney's Office.
Ms. Kawahara. Not just based on law stuff, but on how much
the county has spent? On things that may have been avoided? That would be part
of analysis of what was taken out of County coffers?
Mr Pasion. I don't know, there might be some
limitations of what we could do or couldn't do I don't even want to go into that one
Ms. Kawahara. Okay I think that is all I had for now and I
would be interested in a matrix or something to the nature of how you will prioritize
stuff. And I want to fully recognize and acknowledge that your office is totally
independent and I'm very glad to hear that. As you said, the public sector is very
different from the private sector, whereas the CEO would say do it and whereas you
are going have to deal with at least three (3) different masters - the Administrative,
Council, Judicial, whatever
Mr Pasion. Yeah I was in the private sector for more
than twenty-three (23) years.
Ms. Kawahara. Well I'm looking forward to really good work
from your department and with all the information that you can provide is that the
Administration and Council will be supportive of any kind of improvement that can
be made to make us more effective and efficient and a good place.
Mr Pasion. We're looking forward to that.
Ms. Kawahara. Thank you.
Chair Asing: Thank you. With no other questions.
Councilmember Bynum.
Mr Bynum. I have a follow-up on a couple of things that I
heard other Councilmembers talking about. One real quickly regarding the hiring
freeze and the dollar-funded positions. In addition to those dollar-funded positions,
other positions that were funded were also frozen. So that is going to not just look
at the dollar-funded, but look at the whole gamut, is that correct?
Mr Pasion. That's what we're planning to do.
Mr Bynum. Good, I just wanted to confirm that. And
then I like Councilmember Kawahara's questions about personnel and I would just
add to that, that I'm just thinking out loud here that one (1) of the
recommendations might be that hey, we need to change the Charter or recommend
a Charter change. Also about the concept of a Human Resource Department and
how that fits in with a position that I believe we funded for a risk manager in the
COUNCIL MEETING 20 October 27, 2010
Department of Finance and where would that be in the overall structure? Would it
be in Finance? I have always seen HR as more comprehensive about nurturing our
employees and providing training opportunities and those having a risk-
management function, if employees know how to lift a box, they are less likely to
have a workers' compensation claim. That is the simplest form and we talked
recently about sexual harassment and the liability that has caused. So hopefully
that is a really good examination of what does HR include? And I just wanted to
bring up the fact that I really appreciated the Administration's initiative on risk
manager I think that came from the Department of Finance, as I recall. I think
the Council approved it, as I recall, but because of fiscal things, that position hasn't
been filled. So dust to bring your attention to that and how it would fit in the overall
personnel place? Does it fit in Finance or should it be in Personnel or HR whatever
we want to call it? The last thing is I heard your initial budget request, you
requested what you felt were the resources that you needed to accomplish the tasks
that have been outlined for you by the formation of the department and also by your
plan. And in last year's budget, there were cuts to that budget?
Mr Pasion. That is correct.
Mr Bynum. And that may be why we have a different
agenda item today?
Mr Pasion. That is correct.
Mr Bynum. And then the last thing just to note that
when did your department officially, when did it exist, when was it created?
Mr Pasion. Well the office was originally created by
Charter amendment in the general election of 2008 by the voters, November of
2008. And so basically the office was by law established, but the functioning office
was started September 16, 2009, when I was appointed.
Mr Bynum. Right. And then June 28th as required you
gave us your work plan. And you are working on that work plan, you mentioned a
few minutes ago.
Mr Pasion. I found out that according to the Charter it
has to be submitted before the beginning of the fiscal year
Mr Bynum. Right.
Mr Pasion. We also looked at how it's done in other
jurisdictions. We also looked at how it's done in other jurisdictions, we just don't do
things like you know this is how we'd like to do it. We joined the Association of
Local Government Auditors, we joined the Association of Government Accountants,
and we also joined the Association of Certified Fraud Examiners.
Mr Bynum. And so the fiscal year was July 1. Prior to
the fiscal year, you submitted your plan and you are working this plan right now?
Mr Pasion. That is correct.
21
COUNCIL MEETING October 27, 2010
Mr Bynum. With the resources that you have?
Councilmember Kawahara, this is impressive and you are working on the plan you
gave us?
Mr Pasion. That is correct.
Mr Bynum. And I appreciate that.
Mr Pasion. Thank you.
Mr Bynum. Thank you.
Chair Asing: Thank you. With that, Councilmember
Furfaro?
Mr Furfaro: So I just want to get this clarified for future
years, each year you are required to submit your plan, your audit plan to the
council?
Mr Pasion. Before the beginning of the fiscal year
Mr Furfaro: Should it be an agenda item?
Mr Pasion. I am looking at the two (2) jurisdictions that
have one Office of County Auditor, the City as well as the Big Island. County of
Maui still has Legislative Auditor under the Council Services group The City
Auditor's Office which was started by the Deputy State Auditor took over that
position when it was established and it's not agendaed. The one on the Big Island,
the County Auditor of the Big Island requested the work plan to be agendaed.
Mr Furfaro. So should we make that in future years,
should we make that request that it's at least discussed, received by the Council?
Mr Pasion. The work plan will be received by the
Council and submitted. The reason why let's say you want it submitted in May
or April before the beginning of the budget approval and we submit it and then you
look at it, the Administration looks at it and they say oh we don't want this to be
audited.
Mr. Furfaro: No I didn't say I didn't say to approve it, I
said to make a presentation and receive it.
Mr Pasion. Yeah we could do that. Like I said if we
present it and then we then submit a budget and then. you know there's some
possible you know
Mr Furfaro• Ernie, the Charter amendment that went in,
I worked on and we submitted it to the Council here. So sometimes I look at it and I
kind of see it as my item. But we should at least see the plan so we clearly
understand the budget and the budget we could have approval on. So that is why I
think the plan should be submitted to review, so we can best understand your
budget, the things that you want to accomplish.
22
COUNCIL MEETING October 27, 2010
Mr Pasion. My only concern is when you say "the
budget" and it's submitted and the subject becomes is it going to be cut because we
submitted what the people don't like?
Mr Furfaro: Okay, well I'm only one of seven, but the
reality is that your plan comes in, you discuss it with us, we review it and we have a
better understanding what your plans are for the year
Mr Pasion. We looked at the City, and the City does
that. they don't submit it.
Mr Furfaro: So you are saying at the same time you
should have a carte blanche budget? The two (2) go hand in hand. You know? It's
your plan. You have the autonomy on the plan, but when he come to financing the
plan, we should have a say in the budget. I would think the more information that
you give us about your work effort, the more we're able to support your financial
portions.
Mr Pasion: It would be also be double-edged sword.
Mr Furfaro: Well, it's not an agenda stem today It was
just a discussion item, how is that?
Chair Asing: With that, Councilmember Bynum.
Mr Bynum. I think this last discussion was really
interesting. Because I think it's very important that the Office of the Auditor have
independence. I mean, what I heard you saying is that hey, you submit the plan
and we don't like the plan, we might cut your budget. So I think we need to
continue to have this discussion, because I certainly am in the category when you
submit a plan, it should be an agenda item that gets shared with the public. And
that is one of the reasons I asked for this today On the other hand, I trust this
Council, but we're setting up a system where some people ten (10) years from now
may just do that and say, I want you to avoid looking at this area of county
government, so I will just take away your resources. I'm sure we wouldn't do that.
Mr Furfaro: Let's make sure we understand. I
understand his independence, but when you deal with the morale of the entire
department in the County, all departments, there are wish-lists for people to have
things in their area and they're subject to budget review
Mr Bynum. Right.
Mr Furfaro: I understand the independence. I wrote the
Charter amendment. So we need his services, but at the same time, we need to
have clear understanding and we have to treat all departments with a review
Mr Bynum. I want to pursue this further Perhaps there
is a time schedule we can approve the budget and then do the plan, so there is not,
like, a direct link in any one given year We at least have to wait a year Because
eventually, I think a normality will be established and we will be held, we or future
Councils will be held accountable if they make big changes that weaken the ability
of the Auditor to perform their function. I think it was an interesting discussion
23
COUNCIL MEETING October 27, 2010
and let's look at the timetable and how that comes down. I know you are looking to
the future as well as the rest of us.
Mr Pasion There is a section in the yellow book
regarding control and influence and the auditor's function. We could provide that
again to you. I believe that was also provided, but we'll provide it to you again.
Mr Bynum. Thank you.
Chair Asing: Thank you. Any further questions?
Mr Furfaro: Yes, I do.
Chair Asing: Yes, go ahead.
Mr Furfaro. So you are saying from this discussion that
your office under your leadership for the next six (6) years is going to follow the
guidelines of the yellow book?
Mr Pasion. That is correct.
Mr Furfaro: Should that have been something that we
made very clear by policy?
Mr Pasion. It's in the Charter
Mr Furfaro: It references.
Mr Pasion. Vice Chair, it's in the Charter By Charter
we have to conform with government auditing standards.
Mr Furfaro: I understand that but.
Mr Pasion. I don't have the Charter with me, but I can
send you the section in the charter that says we abide by the government auditing
standards.
Mr Furfaro: Would you get me that section? Not right
now
Mr Pasion. Before I leave the building I will get a copy
from staff and highlight it for you.
Mr Furfaro: Does it touch on your budget provisions?
Does that yellow book policy
Mr Pasion. Then you go into the yellow book and look for
this section in the yellow book about the independence and then the control and
influence over that function.
Mr Furfaro: Anything you could send me, I would
appreciate
Mr Pasion. It's in there, yes.
24
COUNCIL MEETING October 27, 2010
Mr Furfaro: Good.
Chair Asing: Thank you. Any further discussion? If not,
just one comment. I think Ernie, you explained that you were looking at other
jurisdictions on how the process is handled and there is a difference in how the
auditors handle their operations in Oahu versus the auditor's office in Hawaii
county handles theirs a little bit different. I think that is what Ernie was trying to
explain.
Mr Furfaro: I do have one more question. Let me ask
you, in your department, what is your protocol, when say you go over to the building
department to talk to staff members when you are fact-finding and so forth, do you
go through the head of Building Department and say my people will be there?
Mr Pasion. When the office was established, we made a
meeting and we requested a meeting with the Mayor and the Mayor invited to that
meeting his lieutenants, if I can call it that way In that meeting we established
protocols, where if we go in to audit a department, we have to have go through the
Mayor's Office first. Then the Mayor's Office informs the Department. So other
jurisdictions, what they do is that they write a letter to the auditee, and a copy to
the Mayor's Office. And things move faster this way
Mr Furfaro: I would think so Ernie.
Mr Pasion. But this time. fortunately we have to go
through the Mayor's Office and that is why some of our I hate to say this, but some
of our audit activities have been a little delayed.
Mr Furfaro: So let me ask you, I had suggested you hold
individual meetings with some of the departments.
Mr Pasion. We did that.
Mr Furfaro: Okay You went to them and explained your
role?
Mr Pasion. Right.
Mr Furfaro• Good. Thank you. Thank you Mr Chair
Chair Asing: Thank you.
Mr Pasion. And by the way there was some departments
that are volunteering to be audited.
Chair Asing: Thank you. With that, there will be no other
questions. I would like to call. oh, I'm sorry Ernie, thank you very much. We
have the public who wants to speak on this item. Glenn, please.
Mr Bynum. Chair?
Chair Asing: Yes.
25
COUNCIL MEETING October 27, 2010
Mr Bynum. We'll have a discussion after the public
comment?
Chair Asing: Sure.
There being no objections, the rules were suspended.
GLENN MICKENS• Thank you, Kaipo. For the record, Glenn
Mickens. I have a short comment here. Ernie in his testimony brought up the
Kilauea gym project. I applaud him. If he can find out what happened with this
long-running, I believe it's gone on for ten years, maybe more, maybe less of it's a
fiasco. We probably spend more money on a leaky roof than a whole new game.
This has been handled deplorably and I hope Ernie gets answers. I believe that this
Council appropriated a hundred thousand dollars if I'm not mistaken. I've talked
this over with Jay one time to find out what happened with this project. In fact I
believe that this Council appropriated five hundred thousand ($500,000) for a
performance audit, this has been five (5), six (6) years ago, which was never done
and now I hope that Ernie can get resolution to this subject.
Kaipo, you are as learned about this thing as anyone on this Council.
Someone was even hurt and slipped on it, whether it was water leaking. They said
the walls were sweating and it went on and on. It's just inconceivable that
something like this could have gone on for this length of time and there is no telling,
I have no idea what amount of money was spent but it's got to be a huge amount of
money It seems like this thing has perpetually gone on. I can't understand it. But
anyway, I really applaud Ernie, because I think he is going to do a good job in his
position. Thank you.
Mr Furfaro- Glenn before you leave
Mr Mickens: Yeah?
Chair Asing: Go ahead.
Mr Furfaro: Glenn the Kilauea gym audit was done two
(2) years ago, if you didn't follow that discussion.
Mr Mickens: It wasn't in the paper
Mr Furfaro. It wasn't. The draft was done and the Audit
Committee sent back comments and then we changed auditors. There were
discussions about getting the draft on the agenda, but we sent back comments.
Until the audit is finished, it's not necessarily shared with the department. But the
audit is done.
Mr Mickens: It took the auditor ten (10) years to finally
get resolution to this thing?
Mr Furfaro• No and as usual, you are just exaggerating
again.
Mr Mickens: How many years?
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COUNCIL MEETING October 27, 2010
Mr Furfaro: The audit started in 2004. It's been six (6)
years.
Mr Mickens: Okay, six (6) years, it's taken six (6) years for
them to get resolution to this thing and it's still not done.
Mr Furfaro: It was done two (2) years in the form of a
draft. Comments from the Audit Committee were sent to the auditors and they are
subsequently were not the auditors in recent years and they have delayed their
final report. But the investigation, the draft and the assessment was done in a
draft report. I just want to set the record straight.
Mr Mickens: What is the delay of giving the public what
happened with this thing? You say that we appropriated $100,000 for that
particular audit, right? Didn't you tell me that?
Mr Furfaro: Actually you just said that to us.
Mr Mickens: Right.
Mr Furfaro: But it was about a hundred thousand
($100,000) and what I am saying is that it never got over to the Administration to
get back on the agenda. If you were following my discussion, that is what I was
complaining about.
Mr Mickens: Then where does the problem lie, with the
Administration? Is that what you are saying?
Mr Furfaro: No. The problem lies with the answers that
Mr Pasion gave us that they will meet on the first draft comments with those
auditors and submit a final report.
Mr Mickens: But you said the audit was done two (2)
years ago.
ALFRED B CASTILLO, COUNTY ATTORNEY Council Chair? Council
Chair excuse me.
Chair Asing: Yes, go ahead.
Mr Castillo- County Attorney, Al Castillo. You know this
is a process and the speaker here should be giving testimony regarding the agenda
item.
Chair Asing: Thank you.
Mr Castillo: An argument on the Council floor is. I
don't think it's appropriate.
Chair Asing: Thank you.
Mr Furfaro: Excuse me, Mr Chair and to the County
Attorney
27
COUNCIL MEETING October 27, 2010
Chair Asing: Go ahead.
Mr Furfaro: Testimony should be given that is truthful
and factual okay? So the idea was not to say that it's been dragging for over ten
(10) years. We agree it's six (6) years. a draft was done over two (2) years ago,
those auditors have not been retained to give a final review of which Mr Pasion is
now saying is going to be one of his first task. I have no more questions.
Chair Asing: Thank you.
Mr Furfaro: I have no more questions for Mr Mickens.
Chair Asing: Thank you Glenn.
Mr Mickens: Thank you.
Chair Asing: Is there anyone else who wants to speak on
this item? If not, I'd like to call the meeting back to order
There being no one else to speak on this matter, the meeting was called back
to order, and proceeded as follows.
Chair Asing: Is there any further discussion?
Councilmember Bynum.
Mr Bynum. I want to thank Ernie again for coming here
and having this discussion today, I think it was a good one and it was informative.
I am very supportive of the Office of the Auditor and them having the resources for
the job adequately I think they are off to a good start. We haven't had an auditor
before, right? This is something new I think it's a good thing. You have probably
all heard of this before, when you start something new, you probably heard that you
form, storm, norm and perform. When you form something, you have to setup the
standards, you got to get the things worked out. We discussed some of those today
How do you interface with the departments and the Administration? It makes
sense that people will have some level of discomfort with having accountability and
oversight of processes that they have had for a very long time. Or doing the things
the way that they do, you know? We're only human beings and when somebody is
assessing our work, it's a nervous time. But those of us that are mature and
understand that that process will in the long run help us and make us more
effective, that the goal isn't to find problems, the goal is to find improvements is to
keep us moving forward. And so we re in the formation stage and it's inevitable
there be a little storming and we hope it's a minimum and I think it will be, because
we have a bunch of fine professionals who work for the county of Kauai. And in
that process we'll develop norms and get a routine down and we can perform. I
know you have heard that analogy before, form, storm, norm and perform and we're
going through that process as a county Whether it's on the Council level or
departmental level, we're developing those norms and that is all a very positive
thing. In terms of Kilauea gym audit those are the questions that I am asking and I
am requesting that we have a presentation to the council to bring that to fruition. I
am frustrated about the timeline, but I don't know the answers and where the
accountability lies. That is what we're going to do and find out. I do know there is
an audit that is shared with Public Works to give them the issues involved. I was
hearing honestly, I am the chair of Public Works, the Public Works Department is
28
COUNCIL MEETING October 27, 2010
saying hey, we met with the auditors and gave all this information and we want to
know the results. We want to know how we're doing and where we can improve.
And it was a very sincere request. Those things have happened and I think
the final thing is to have that discussion for the benefit of Mr Mickens and others
interested in the whole process. It doesn't feel like we have had closure and we need
that. I don't think we're going to find anything huge. We're going to find that the
process worked, I hope. I am pretty sure that we will. So I very much appreciate
having this discussion today Thank you very much.
Chair Asing Thank you. Councilmember Furfaro?
Mr Furfaro: Yes. First of all, I want to say to the Audit
Department, the fact-finding that you do, you will get all the support from us. I just
want to make sure it's well-communicated as Mr Bynum said. The fact of the
matter is when people have good information they can come to the right
conclusions. I also wanted to say to the Kilauea gym, as I said with Mr Bynum,
you saw some of my narrative that went over two years ago I did a complete
management assessment to the best of my knowledge and those comments were
sent over As I am trying to ask the question about the draft plan, it seems the
auditors would prefer it's not an agenda item until it's complete and that is what I
was saying here. And "complete" means getting the originally assigned auditors
back.
I think I mentioned on that particular piece there were no real significant
challenges and that I will share with you, and I spent several days going over all of
the notes. I thought I did a pretty comprehensive review that went back to the
Building Department. But we're going to be in tough times going forward, and we
don't necessarily have options to keep putting money on the table. So Ernie's role is
very, very welcome with his staff. But I think it's going to be more of a sense for me
is getting through the reviews that we have got scheduled for December I will be
meeting with the Finance Director as it relates to coming up with some kind of draft
reserve policy that we can mutually agree on and then eventually present it to the
Council. So thank you very much.
Chair Asing: Thank you. Any further discussion?
Councilmember Kawahara.
Ms. Kawahara. I, too, wanted to say the auditing services
and Office of the Auditor is a very welcome to the government and wanted to echo
Councilmember Bynum in his capturing of the essence of where we are with the
Auditing Department and we're just starting it and the whole process how it will
work out, how it will be done procedurally is important to recognize, and I want to
thank Ernie for being willing and able to be our first County Auditor I think also
want to recognize as Councilmember Bynum said it's not a punitive action that
takes place in an audit, but how to improve government and efficiencies? So I'm
really glad we have a county auditor and mutual respect as we get to a norm with
an audit.
Chair Asing: Thank you. Any further discussion? If not, I
would like to comment and commend everyone for their participation today To
Ernie, it's a new endeavor, new office and there's many things you need to look at. I
know you shared your analysis and in your analysis you are going to be following
the standards of the yellow book. And you will be following the standard as
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COUNCIL MEETING October 27, 2010
prescribed in the yellow book. So we look forward to your office conducting audits
and we will work together with you in that endeavor So with that, thank you very
much and with there being no other additional discussion on the item. Do we have
a motion to receive?
Mr Furfaro moved to receive C 2010-289 for the record, seconded by Mr Bynum,
and unanimously carried.
Chair Asing: Next item please.
Mr Nakamura. Council Chair
Mr Furfaro• If we could possibly break for lunch,
Mr Chair it's 12:30
Chair Asing: We'll break for lunch and be back at 1.30
Thank you.
There being no objections, the Council recessed 12:32 p.m.
The Council reconvened at 1.49 p.m., and proceeded as follows:
Chair Asing: Council meeting is now called to order With
that Mr Clerk next item please.
Mr Nakamura. Mr Chair we're on page two (2) of the
Council's agenda on communication C 2010-290
Mr Furfaro: Excuse me Mr Clerk, I was going to ask
before we have started if I can have a moment of personal privilege?
Chair Asing: Yes you may
Mr Furfaro: Thank you so much Mr Chair
Chair Asing: Go ahead.
Mr Furfaro• We are back from lunch and I just wanted to
make sure for the purpose of getting good information out, I have here the date that
the professional services agreement was issued April 30, 2005 and I want to give
that to Mr Mickens along with the performance report for the Kilauea gym, which
is on the website. I want to make very clear that the questions and resolutions have
not come to this council, because as Mr Bynum may have seen in my summary, one
thing that became very apparent is the possibility of having a project manager for
large projects as a discussion item. So thank you for that time, I just want to,
again, reference the date and give an actual hard copy on the performance audit,
which is completed. And others can see it on the county website under the Audit
Department. Thank you for that, Mr Chair
Chair Asing: Thank you. With that, Mr Clerk can you
read the next item please?
Mr Nakamura. Council Chair, we're on page two (2) of the
Council agenda on communication C-2010-290
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COUNCIL MEETING October 27, 2010
C 2010-290 Communication (10/15/2010) from Vice Chair Furfaro and
Councilmember Kawahara, requesting that the Director of Finance and the Director
of Personnel Services be present to review furlough questions that will be discussed
at the upcoming review of the County's Furlough Plan that has been scheduled for
the December 15, 2010 Council Meeting, pursuant to Section 32 of the Operating
Budget for FY 2010-2011.
Chair Asing: Thank you. With that, Councilmember
Furfaro?
Mr Furfaro: Thank you. Thank you Mr Chair I would
like to reference the memorandum sent over October 15, signed by myself as well as
Councilwoman Kawahara. This is a step-by-step question looking for the net
results on the furlough plan. This is directed to Mr Rezentes and there are twelve
(12) questions directed to him for the December 15 Council meeting. They start
anywhere from the aggregate totals for the first quarter of the year 2010 on payroll
savings. It talks about have we achieved our furlough savings that was planned for,
and asking about non-payroll activities such as the benefit packages associated with
medical, vacation and pay If you do not see reduced hours it's assumed that the
benefit package is still carried. Even if you save hours that are less than the part-
time status, you are carrying the cost on earned sick-leave pay, as well as vacation
and other measurable benefits. Another question keels with negative impacts on the
county cash flow Have we experienced any of that and I want to thank
Councilwoman Kawahara for collaborating with me and also the Department of
Motor Vehicle Registration and collections from any other divisions or
delinquencies? Has there been increase in personnel overtime? The overtime is
related to the fact that we may be paying a premium over regular time to get the
work done in a timely manner
There were questions raised in this piece, project delays that would add to
any project costs. It also has questions dealing with time and attendance and if
there are possibilities that we extended times from Friday to Monday And has
there been any other increases in non-productive payroll related to morale,
potential morale issues? And it also summarizes the two (2) questions that before
Mr Bynum posed to the auditors on unfilled positions and any positions that we're
holding. I wanted to have that summerized in a net/net savings by department.
I think it's very important that people realize that it's not a simple thing as
adjusting the numbers through a money bill, but we would actually have to do
something that says we would have to amend the budget by department.
Department by department. So those are some of the questions. I know Mr Bynum
has some other questions to add, but I have one (1) slide powerpoint presentation
that I wanted to share with you folks, if I could. This is related to the two (2)
proviso questions in the budget for consideration.
There we go. These were items we put in provisos 1, 2 and 3. The county
agreed upon policy for the determining and establishment of an annual reserve. We
touched on that a little earlier on Mr Bynum's item that I meet with the Finance
Department the first week in November to begin a discussion on having an actual
policy that could range from 10 to 15% in a year and only based on the operating
budget. So we have a transparency on what should be the right reserve. Already
reviewing the provision on what benefits are realized from the furloughs versus the
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COUNCIL MEETING October 27, 2010
planned savings? Are we causing any new workloads based on the fact that we
have offices closed two (2) days a week?
Three, evaluate the size of the surplus carryover versus paying down debt.
We carry $7 million worth of debt service on the new bonds, we'll have a total of
$120 million. That includes the money that we have supported for the Water
Department. Review investment returns versus using surplus to pay down the
debt. I just touched on that as well. Review the execution and in-house ability to
complete capital projects as scheduled and funded. Remember when we borrow
bond money to do capital appropriation, the rule of thumb is that we have 36
months to complete the project. If not, we enter into a penalty phase. Also evaluate
the premium pay versus the straight-time pay for the furlough period and
comparisons to pre-furlough history patterns. So we want to know what the payroll
was running prior to furloughs and then what we had planned to save and added to
that any new hires and/or overtime incurred. And last, you know, the minimal
impact of the entitled benefits, such as vacation, sick accruals, as well as health,
wellness benefits continuing at full-time levels. I want to point out this is a
biannual year for the State, which means the State is going to propose a draft
budget that covers a two-year period and they will touch on things like collective
bargaining contracts. Ours will be up, as well as insurance, health and liability
insurance premiums, and our OPED which deals with our retirements as it relates
to previous employees of the county So I just wanted to share with you and thank
you Councilwoman Kawahara for her collaboration on this memorandum, but this is
for the December 15 meeting. That is all I wanted to report on, Chair
Chair Asing: Thank you. With that, can we have the
lights on first, please? With that, any questions? Councilmembers? If not, go
ahead Councilmember Bynum.
Mr Bynum. As Mr Furfaro indicated I'm also sending
over some questions to give the Administration a head's up regarding our discussion
that happens on December 15 I will circulate these to all Councilmembers. They
relate more to the impact of furloughs on services, particularly in our Neighborhood
Centers and in our senior programs. The Neighborhood Centers are closed on
furlough days and those happen to be Fridays, which are probably the most popular
use day and our seniors and their health and wellness programs meet in the senior
centers. So I want to have an understanding of how furloughs impacted services.
And also, how furloughs have impacted our employees? And the amount of
money that is circulating in our economy So I'm asking questions about the
number of employees at certain salary ranges and also, the impact on take-home
pay for county employees that work at different salary levels. So I just wanted to
state that.
Chair Asing: Thank you.
Mr Bynum. And I'm assuming that on the 15th, if any
Councilmember comes up with further questions we could forward those and we'll
have an open dialogue on the 15th
Chair Asing: So we'll add that memo together with
Councilmember Furfaro's memo. Thank you. Any other discussion? Yes?
Councilmember Kawahara?
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COUNCIL MEETING October 27, 2010
Ms. Kawahara. Thank you Chair I wanted to thank Vice
Chair Furfaro for helping and formulating most of the questions on this memo. I
believe the furlough plan we put in place has had a great impact on our economy
and workers. So I really appreciate Councilmember and Vice Chair Furfaro going
through the nuts and bolts how the furlough was implemented and if we are going
to make any cost-savings at all. Having his business and management savvy to
look at the issue and come up with the questions was really important. Question
number five (5) definitely was a concern of mine about how the furlough was going
to work and whether there was going to be an increase in personnel overtime and if
so, by how much and the percentage and amount. And also about our ability to
meet and process permits and applications as a county And the other one was
whether or not there is going to be a way to measure the impact of furloughs on
employees' morale and reduced productivity related to furloughs. I think it's really
important when we took the step to decide to do furloughs, it was a significant step
that needs to be looked at to see if any at all savings were made on that. And it
does major make for us to be accountable on whether or not that furlough was
something we needed to do and something that we'll need to continue.
I want to thank Vice Chair Furfaro for having the insight to give our
Administration and Departments a big head's up what we're expecting from this to
prove the effects of the furlough and how it's going to pencil out in our budget.
Thank you.
Chair Asing: Thank you. Any further questions? Yes, go
ahead.
Mr Furfaro: I want to reestablish what the County
Auditor indicated earlier, separate from these questions he will pursue his own
evaluation. This is just to give the Finance Department a head's up on proviso
number two (2) and proviso number thirty-two (32) and number thirty-three (33),
which are in the budget. Thank you.
Chair Asing: Thank you. Any further discussion? If not,
can we have a motion to receive?
Mr Bynum moved to receive C 2010-290 for the record, seconded by Mr Furfaro,
and unanimously carried.
Chair Asing: Next item please.
Mr Watanabe. Next item is 2010-291.
C 2010-291 Communication (09/21/2010) from the Fire Chief, requesting
Council approval to establish a Temporary As Needed (TAN) operator position for
the brush truck assigned to the new Kaiakea Fire Station to accommodate
emergency staffing needs to implement Section 27 of the Hawaii Fire Fighters
Association Contract Agreement, and to utilize existing employees through an
assignment of work without a formal change in position. Mr Chang moved to
approve C 2010-291, seconded by Mr Furfaro
Chair Asing: Any discussion?
Mr Furfaro: Yes.
33
COUNCIL MEETING October 27, 2010
Chair Asing: Yes, go ahead.
Mr Furfaro: I just wanted to say I visited with some of
the training going on with the fire fighters on (Inaudible) with Kaiakea Fire Station
yesterday and was very pleased with the effort being put into this. Thank you
Chiar
Chair Asing: Thank you. Any additional comments? If
not, all those in favor say aye?
Councilmembers: Aye.
Chair Asing: Motion carried.
The motion to approve C 2010-291 was then put, and unanimously carried.
Chair Asing: Next item please.
Mr Watanabe: C 2010-292.
C 2010-292 Communication (09/24/2010) from the Director of Parks and
Recreation, transmitting for Council approval an Application For County Funds
Under Park Grant Fund in the amount of $7,470.00 for various improvements in
Hanapepe Cliffside Park at Hanapepe Heights, and to assign the grant fund to the
Garden Island RC&D which is the sponsoring non-profit entity providing fiscal
oversight of the project construction. Mr Furfaro moved to approve C 2010-292,
seconded by Mr Chang.
Chair Asing: Any discussion? Yes, Councilmember
Bynum.
Mr Bynum. I just wanted to acknowledge all those great
volunteers in Hanapepe that have been working on these projects at Cliffside Park
and appreciations to RC&D for being the fiscal umbrella. that's it.
Chair Asing: Thank you. Any further discussion? I'd like
to echo the same comments as Councilmember Bynum. As a matter of fact I would
like to send a letter from the Council to that effect thanking all of the volunteers for
their hard work. They have been doing it for years and this is another one of their
projects continuing to improve a park system there. So I totally agree and I'd like to
have a communication sent to that effect.
Mr Furfaro• Well said, thank you Mr Chair
Chair Asing: With that, any further discussion? If not.
All those in favor say aye
Councilmembers: Aye.
Chair Asing: Oppose say "no" Motion carried. Next item
please.
The motion to approve C 2010-291 was then put, and unanimously carried.
34
COUNCIL MEETING October 27, 2010
Mr Watanabe. C 2010-293.
C 2010-293 Communication (10/01/2010) from the Fire Chief, requesting
Council approval to apply for, receive, and expend a Staffing for Adequate Fire and
Emergency Response (SAFER) Grant administered by the U.S. Department of
Homeland Security for $436,725.00, to fund three (3) dollar-funded f"iref"ighter
positions for a two-year period: Mr Chang moved to approve C 2010-293, seconded
by Mr Furfaro and unanimously carried.
Chair Asing: Next item please.
Mr Watanabe: Next item is C 2010-294.
C 2010-294 Communication (10/11/2010) from the Fire Chief, requesting
Council approval to accept a donation of $100 00 from Mrs. Margaret Enverso, that
would be deposited to the Public Safety Firefighters, Other Services grant account
for future use in recognizing members: Mr Furfaro moved to approve C 2010-294
with an appropriate thank-you letter, seconded by Mr Bynum, and unanimously
carried.
Chair Asing: Next item please.
Mr Watanabe: Next item Chair is a Legal Document,
C 2010-295.
LEGAL DOCUMENT:
C 2010-295 Communication (10/13/2010) from the Director of Housing,
requesting that the Council authorize the County Clerk to execute the Housing
Agreement (In-Lieu Fees/Lien Applicable to Subdivision No. 5-2009-16) for
Kahu`aina Plantation II Subdivision, located in Waipake, Hanalei, Kauai, Hawaii,
wherein the applicant has agreed to satisfy the workforce housing assessment with
payment of In-Lieu fees for the required number of 18.9 workforce housing units:
Housing Agreement (In-Lieu Fees/Lien Applicable to Subdivision No.
5-2009-16); TMK. (4) 5-1-03:06, 10 and 29; Falko Partners, LLC
(Applicant)
Chair Asing: Councilmembers let's have discussion on this
item. I believe that the way the item was written, I believe that it's not up to us but
I will have Al explain this further
There being no objections, the rules were suspended.
Mr Castillo: Good afternoon Council Chair,
Councilmember, Al Castillo County Attorney You're absolutely correct. The
transmission and the wording of the transmission is an error It should have been a
courteousy communication regarding the agreement that was done. I worked on
this project for a year now and it was supposed to be a courteousy communication.
Housing ordinance 860 does not require what the agenda item calls for, so based on
that you know I think that agenda item, the way it's worded, it's improperly worded
and placed on the agenda for your consideration. So whichever way you want to
handle it.
35
COUNCIL MEETING October 27, 2010
Chair Asing: Thank you. I would suggest that we receive
the item so that it can be reworked and reworded in its proper manner before its
placed on the agenda.
Mr Castillo: Okay, thank you.
Mr Kawakami moved to receive C 2010-295 for the record, seconded by Mr Chang.
Chair Asing: Any discussion?
Ms. Kawahara. Is there a difference between receive and
withdraw?
Chair Asing: Pardon me?
Ms. Kawahara. Is there a difference between receive and
withdraw?
Chair Asing: No, not really
Ms. Kawahara. In this case? Oh okay
Chair Asing: No. It's the same thing.
Ms. Kawahara. Thanks.
Chair Asing: Any further discussion? If not. All those in
favor say aye.
Councilmembers: Aye.
Chair Asing: Oppose say "no" Motion carried.
The motion to receive C 2010-295 for the record was then put, and unanimously
carried.
Chair Asing: Next item please
Mr Watanabe Next item is a Committee Report.
COMMITTEE REPORT-
ECONOMIC DEVELOPMENT/HOUSING COMMITTEE
A report (No CR-EDH 2010-4) submitted by the Economic
Development/Housing Committee, recommending that the following be received for
the record.
"Communication (9/20/2010) from Committee Chair Chang,
requesting the presence of Bob Craver, Director of the Kauai Marathon, to
provide a post race update on the 2010 Kauai Marathon,"
Mr Furfaro moved for approval of the report, seconded by Mr Bynum, and
unanimously carried.
36
COUNCIL MEETING October 27, 2010
Chair Asing: Next item please. Hang on. Short recess.
There being no objections, the Council recessed 2:10 p.m.
The Council reconvened at 2:14 p.m., and proceeded as follows:
Chair Asing: The meeting is now called back to order, with
that, next item please.
Mr Watanabe- Next item is Resolution No. 2010-54.
RESOLUTION
Resolution 2010-54, RESOLUTION ESTABLISHING NO-PARKING AT ANY
TIME ALONG PORTIONS OF HALEILIO ROAD AND APANA ROAD,
KAWAIHAU DISTRICT, COUNTY OF KAUAI. Mr Bynum moved to approve
Resolution No. 2010-54, seconded by Mr Chang, and carried by the following vote:
FOR APPROVAL. Bynum, Chang, Furfaro, Kawahara
Kawakami, Asing TOTAL - 6,
AGAINST APPROVAL. None TOTAL - 0,
EXCUSED & NOT VOTING Kaneshiro TOTAL - 1.
Mr Watanabe: Six (6) ayes Mr Chair
Chair Asing: Next item please.
Mr Watanabe- Next item is a bill for first reading.
BILLS FOR FIRST READING
Proposed Draft Bill (No. 2385) - A BILL FOR AN ORDINANCE TO AMEND
ORDINANCE NO B-2010-705, AS AMENDED, RELATING TO THE OPERATING
BUDGET OF THE COUNTY OF KAUAI, STATE OF HAWAII FOR THE FISCAL
YEAR JULY 1, 2010 THROUGH JUNE 30, 2011, BY REVISING THE SURPLUS
AND APPROPRIATIONS ESTIMATED IN THE GENERAL FUND ($90,211 -
County Auditor)
Mr Furfaro: I would like to have a motion to defer this
please.
Mr Furfaro moved to defer Proposed Draft Bill No. 2385.
Mr Watanabe Chair please note we have a written
testimony from Mr Mickens and Barbara Robeson.
Mr Furfaro: Barbara Robeson is the testimony that was
circulated earlier?
Mr Watanabe Yes.
Mr Furfaro: Thank you very much.
37
COUNCIL MEETING October 27, 2010
Chair Asing: With that, I'd like to suspend the rules.
There being no objections, the rules were suspended.
Mr Mickens: Thank you Kaipo, for the record Glenn
Mickens. You have a copy of my testimony, let me read it for the record please, it's
very short, World Series is on, so I want to get out of here fast.
Mr Furfaro: So you don't need to throw it high and
inside?
Mr Mickens: No, no.
Mr Furfaro. Okay, just wanted to check.
Mr Mickens: Not with Lee pitching. One of the top
priorities on my friend Ernie Pasion's Audit list is the paving and repaving of our
three hundred (300) miles of county roads. I have pursued this issue for seventeen
(17) years without resolution and even though Dickie was good enough to arrange a
meeting with Public Works over a year ago, nothing has happened. I do believe
that Ed Renaud is trying to move this issue forward but I am awaiting results.
I am never in favor of creating more positions in the County to add to the
financial burden we already have unless it can be proven that the new position is
absolutely necessary
Since Charter Amendment thirty-two (32) established the Office of the
County Auditor, and Section 32.04c states, "The Legislative auditor, program
analyst 5 and program support tech positions in the Office of the County Clerk on
June 30, 2009 shall continue with the Office of the County Auditor on July 1, 2009
Does this mean that since Ernie is asking for these positions to be filled, they
were only dollar funded at that time and never previously filled? And if Ernie needs
these positions to get his office up and running I would definitely be in favor of Bill
2385
The question that arises is if Ordinance 32 was passed as Ernie. somebody
asking the question. November 28, 2008 and here we are two (2) years later with
this office not up and running, why are we still in the organizational stage at this
moment? Anyway I'm completely in support of my friend Ernie what he wants to do
to get these two (2) positions, it's a lot of money but hey if that is what it's going
to take to have a independent audit, I'm completely for it. Thank you.
Chair Asing: Thank you. Is there anyone else who wants
to testify? If not, I'd like to call the meeting back to order We have a motion and a
seconded to defer
There being no one else to speak on this matter, the meeting was called back to
order, and proceeded as follows:
Mr Watanabe Chair? We need a second.
Mr Furfaro: Kawakami was the seconded.
38
COUNCIL MEETING October 27, 2010
Chair Asing: Thank you. There'd be no discussion on the
a motion to defer all those in favor say aye.
Councilmembers: Aye.
Chair Asing: Oppose say "no" Motion carried.
Mr Furfaro moved to defer Proposed Draft Bill No. 2395, seconded by
Mr Kawakami, and unanimously carried.
Mr Watanabe. No further business Council Chair
ADJOURNMENT.
There being no further business, the meeting was adjourned at 2:18 p.m.
Respectfully submitted,
PETER A. NAKAMURA
County Clerk
/ds