SALARY COMMISSIONCITY AND COUNTY OF HONOLULU

530 South King Street, Room 202Honolulu, Hawaii 96813

MINUTES OF THE COMMISSION’S FOURTH MEETING:APRIL 24, 2018

1. CALL TO ORDER

Chair Kevin Sakamoto called the meeting to order on Tuesday, April 24, 2018 at 1:30p.m. in the Councils Committee Meeting Room.

2. ATTENDANCE

Commissioners present at the meeting: Chair Kevin Sakamoto; Merle Kelai; DianePeters-Nguyen, Guy Tajiri, Gerald Takeuchi, Brian Tamamoto, and Claire Yuen

Commission support staff present at the meeting: Todd Swisher, Legislative Analyst;Randall Young, Legislative Analyst

Commission attorney present at the meeting: Molly Stebbins, Deputy CorporationCounsel

Others present: Roy Amemiya, Managing Director; Carolee Kubo, Director of HumanResources (DHR); Con Shinkawa (DHR); Denise Miyahara (DHR)

3. APPROVAL OF MINUTES

There was a motion by Commissioner Kelai to approve and file the minutes of the March27, 2018 meeting. Commissioner Peters-Nguyen seconded the motion. Hearing noobjections from the seven Commissioners present, the minutes were approved ascirculated.

4. EXECUTIVE SESSION: PURUSUANT TO HAWAII REVISED STATUTES SECTIONS924 AND 92-5(a)(4) FOR THE PURPOSE OF CONSULTING WITH THECOMMISSION’S LEGAL COUNSEL ON QUESTIONS AND ISSUES CONCERNINGITS POWERS. DUTIES, PRIVILEGES, IMMUNITIES AND LIABILITIES IN RELATIONTO THE REVIEW AND APPROVAL OF THE MINUTES OF THE EXECUTIVESESSION MEETING ON JANUARY 30, 2018

A motion was made by Commissioner Kelai to convene into Executive Session for thepurpose of consulting with the Commission’s legal counsel on questions and issuesconcerning its powers, duties, privileges, immunities and liabilities in relation to thereview and approval of the minutes of the Executive Session meeting on January 30,

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2018. The motion was seconded by Commissioner Yuen. The Commissionersunanimously voted to enter into Executive Session and the Salary Commission recessedat 1:32 p.m.

RECONVENE

Chair Sakamoto called the meeting back to order at 1:51 p.m.

There was a motion by Commissioner Kelai to approve and file the minutes of theExecutive Session meeting held on January 30, 2018. Commissioner Takeuchiseconded the motion. Hearing no objections from the seven Commissioners present,the minutes were approved as circulated.

5. ANNUAL REVIEW OF SALARIES AND SALARY SCHEDULES PURSUANT TOSECTION 3-122 OF THE REVISED CHARTER OF THE CITY AND COUNTY OFHONOLULU

k DELIBERATION AND DECISION-MAKING ON SALARY COMMISSIONRECOMMENDATIONS

Commissioner Yuen made a statement recusing herself from voting on salaryadjustments to the Council Chair, Councilmembers, Department Heads, and DeputyDepartment Heads due to the fact that, in her professional capacity, she would have amatter pending before them in the upcoming year. Chair Sakamoto notedCommissioner Vuen’s statement for the record and reiterated the positions from whichshe would recuse herself.

Chair Sakamoto noted that at the February 27, 2018 meeting of the Commission, thepermitted interaction group (‘PIG’) provided its report and recommended a 4.0% salaryincrease for all elected and appointed officials, with the exception of the CorporationCounsel, for which the recommendation was a 7.0% increase. He indicated that theCommission had not received any written testimony since its previous meeting andasked if there was anyone in the audience who wished to testify.

Managing Director Roy Amemiya read a written statement which was later filed with theCity Clerk as Mayors Message No.49 (2018). The Managing Director testified in favorof the PIG’s recommendations and further requested the Commission consider aproposal to address a situation regarding a longtime civil service employee serving as anActing Director of a City department. He explained that if the individual were appointedto the Director position, the promotion would come with a salary reduction. He indicatedthat this created a disincentive for highly qualified civil service employees to seekappointed Director or Deputy Director positions. As a remedy, he proposed the additionof a new row in the table of salary recommendations reproduced on the agenda for themeeting which would read as follows: “ Notwithstanding the foregoing, if a civil serviceemployee is on leave without pay to work in an exempt department head or deputydepartment head position and the base pay that employee would have received hadhe/she remained in the civil service position is greater than the pay set by the Salary

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Commission, the employee shall receive the pay he/she would have received hadhe/she remained in the civil service position.” The Managing Director stated that thechange would allow experienced civil service employees to receive promotions withoutsacrificing salary or retirement compensation.

The Managing Director further stated that the situation in question concerned a 35-yearemployee of the Department of Planning and Permitting who had been serving as ActingDirector since January of 2017. As Acting Director she has been able to continuereceiving her civil service salary, but upon appointment, and even taking into account thePIG’s recommended 4% increase for Department Heads effective July 1, 2018, shewould receive a pay cut in excess of $5000. Moreover, that reduction in salary wouldreduce her retirement income in the longer term. The proposed change would apply toothers who find themselves in similar circumstances.

In response to a question from Vice-Chair Tamamoto, the Managing Director affirmedthat he was in support of the 7% increase for the Corporation Counsel. With regard tothe Administration’s request, Vice-Chair Tamamoto noted that the Department of HumanResources submitted testimony to the Commission highlighting various instances inwhich civil service employees were being paid more than their exempt appointedmanagers. The request seemed to ask that an inversion be maintained. The ManagingDirector thanked the Commission for addressing inversions over the years. He notedthat keeping the Acting Director in her current capacity prevented the City Council fromexercising its advise and consent role and prevented the public from weighing in on thenomination through a public hearing. He further stated that as the current Administrationstarts to term out, some appointees may move on to other opportunities and it may behard for the Administration to find individuals willing to serve in top positions for shortdurations. Civil service employees who may be facing a pay cut would be especiallyreluctant to take these positions.

Commissioner Kelai asked the Managing Director why the issue had not been raised theprevious year. The Managing Director stated that Ms. Sokugawa, the Acting Director, atfirst expected to return to her civil service position and only recently agreed to entertainappointment as Director. The Administration did seek applicants for the position, butnone were as capable as Ms. Sokugawa. Furthermore, he stated that the Administrationfeels that having her continue as Acting Director does not follow the spirit of the CityCharter.

Commissioner Peters-Nguyen asked for guidance as to whether the Commission shouldbe considering the position or the situation of an individual in that position. A motion wasmade by Commissioner Tajiri to convene into Executive Session for the purpose ofconsulting with the Commission’s legal counsel on questions and issues concerning itspowers, duties, privileges, immunities and liabilities in relation to the Administration’srequest. The motion was seconded by Commissioner Peters-Nguyen. TheCommissioners unanimously voted to enter into Executive Session and the SalaryCommission recessed at 2:04 p.m.

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RECONVENE

Chair Sakamoto called the meeting back to order at 2:20 p.m.

Chair Sakamoto asked if there was anyone else who wished to provide testimony.There being none, the Commission proceeded.

Chair Sakamoto stated that the Commission had received the PIG’s recommendations at

its last regular meeting and would now be able, under the Sunshine Law, to discuss andmake a decision on those recommendations. He stated that the Commission wouldconsider salary adjustments for each position or class of positions listed on the agendaseparately, beginning with the Mayor.

For each position, Chair Sakamoto read out the PIG’s recommendation and asked hisfellow commissioners if there were any motions in relation to the recommendation.

Mayor: PIG recommendation for 4% salary increase for the mayor. Commissioner Tajirimoved to approve the PIG’s recommendation. The motion was seconded byCommissioner Peters-Nguyen. Commissioners Kelai, Peters-Nguyen, Sakamoto, Tajiri,Tamamoto, Takeuchi, and Yuen voted in favor. There were no votes against. The PIG’srecommendation was approved.

Council Chair: PIG recommendation for 4% salary increase for the council chair. Vice-Chair Tamamoto moved to approve the PIG’s recommendation. The motion wasseconded by Commissioner Kelai. Commissioners Kelai, Peters-Nguyen, Sakamoto,Tajiri, Tamamoto, and Takeuchi voted in favor. Commissioner Yuen recused herself.There were no votes against. The PIG’s recommendation was approved.

Councilmembers: PIG recommendation for 4% salary increase the councilmembers.Commissioner Peters-Nguyen moved to approve the PIG’s recommendation. Themotion was seconded by Commissioner Tajiri.

Deputy Corporation Counsel Molly Stebbins approached to counsel that thecommissioners regarding their motions. She noted that the Chair was asking formotions in relation to the PIG’s recommendations, so if commissioners intended to moveto approve the recommendations, they should say so explicitly.

In response, Commissioner Peters-Nguyen restated her motion to approve the PIGsrecommendation. The motion was seconded by Commissioner Tajiri. CommissionersKelai, Peters-Nguyen1 Sakamoto, Tajiri, Tamamoto, and Takeuchi voted in favor.Commissioner Yuen recused herself. There were no votes against. The PIG’srecommendation was approved.

Prosecuting Attorney: PIG recommendation for 4% salary increase for the prosecutingattorney. Commissioner Tajiri moved to approve the PIG’s recommendation. Themotion was seconded by Commissioner Takeuchi. Commissioners Kelai, Peters-

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Nguyen, Sakamoto, Tajiri, Tamamoto, Takeuchi, and Yuen voted in favor. There wereno votes against. The PIG’s recommendation was approved.

Managing Director: PIG recommendation for 4% salary increase for the managingdirector. Vice-Chair Tamamoto moved to approve the PIG’s recommendation. Themotion was seconded by Commissioner Kelai. Commissioners Kelai, Peters-Nguyen,Sakamoto, Tajiri, Tamamoto, Takeuchi, and Yuen voted in favor. There were no votesagainst. The PIG’s recommendation was approved.

Deputy Managing Director: PIG recommendation for 4% salary increase for the deputymanaging director. Commissioner Takeuchi moved to approve the PIG’srecommendation. The motion was seconded by Commissioner Peters-Nguyen.Commissioners Kelai, Peters-Nguyen1 Sakamoto, Tajiri, Tamamoto, Takeuchi, and Yuenvoted in favor. There were no votes against. The PIG’s recommendation was approved.

Department Heads (except Police Chief, Fire Chief, Medical Examiner, and CorporationCounsel): PIG recommendation for 4% salary increase for the department heads (withthe exception of the Police Chief, Fire Chief, Medical Examiner, and CorporationCounsel), Commissioner Peters-Nguyen moved to approve the PIGs recommendation.The motion was seconded by Commissioner Tajiri.

Chair Sakamoto asked if there was any discussion in light of the testimony from theManaging Director. Vice-Chair Tamamoto identified himself as a member of the PIGand acknowledged the Managing Director’s verbal and written testimony. The Vice-Chair stated that moving forward with the Administration’s request would be precedent-setting and that complying with the request would potentially create more inversions inthe future. He further noted that public service sometimes requires a pay cut, citing theexample of the current Corporation Counsel. He asked that his fellow commissionerstake these thoughts into consideration as they voted.

The motion on the table was to approve the PIG’s recommendation for a 4% salaryincrease for the department heads (with the exception of the Police Chief, Fire Chief,Medical Examiner, and Corporation Counsel). Commissioners Kelai, Peters-Nguyen,Sakamoto, Tajiri, Tamamoto, and Takeuchi voted in favor. Commissioner Yuen recusedherself. There were no votes against. The PIG’s recommendation was approved.

Police Chief: PIG recommendation for 4% salary increase for the police chief.Commissioner Tajiri moved to approve the PIG’s recommendation. The motion wasseconded by Vice-Chair Tamamoto. Commissioners Kelai, Peters-Nguyen, Sakamoto,Tajiri, Tamamoto, Takeuchi, and Yuen voted in favor. There were no votes against. ThePIG’s recommendation was approved.

Fire Chief: PIG recommendation for 4% salary increase for the fire chief. CommissionerTakeuchi moved to approve the PIG’s recommendation. The motion was seconded byCommissioner Vuen. Commissioners Kelai, Peters-Nguyen, Sakamoto, Tajiri,Tamamoto, Takeuchi, and Yuen voted in favor. There were no votes against. The PIG’srecommendation was approved.

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Medical Examiner: PIG recommendation for 4% salary increase for the medicalexaminer. Commissioner Yuen moved to approve the PIGs recommendation. Themotion was seconded by Commissioner Kelai. Commissioners Kelai, Peters-Nguyen,

Sakamoto, Tajiri, Tamamoto, Takeuchi, and Yuen voted in favor. There were no votesagainst. The PIG’s recommendation was approved.

Deputy Department Heads (excluding First Deputy Prosecuting Attorney, First DeputyCorporation Counsel, Deputy Police Chiefs, Deputy Fire Chief, and Deputy Medical

Examiner): PIG recommendation for 4% salary increase for the deputy departmentheads (excluding First Deputy Prosecuting Attorney, First Deputy Corporation Counsel,Deputy Police Chiefs, Deputy Fire Chief, and Deputy Medical Examiner). Vice-Chair

Tamamoto moved to approve the PIG’s recommendation. The motion was seconded byCommissioner Tajiri. Commissioners Kelai, Peters-Nguyen, Sakamoto, Tajiri,Tamamoto, and Takeuchi voted in favor. Commissioner Yuen recused herself. Therewere no votes against. The PIG’s recommendation was approved.

First Deputy Prosecuting Attorney: PIG recommendation for 4% salary increase for thefirst deputy prosecuting attorney. Commissioner Peters-Nguyen moved to approve thePIG’s recommendation. The motion was seconded by Vice-Chair Tamamoto.Commissioners Kelai, Peters-Nguyen, Sakamoto, Tajiri, Tamamoto, Takeuchi, and Vuenvoted in favor. There were no votes against. The PIG’s recommendation was approved.

Deputy Police Chiefs: PIG recommendation for 4% salary increase for the deputy policechiefs. Vice-Chair Tamamoto moved to approve the PIG’s recommendation. Themotion was seconded by Commissioner Kelai. Commissioners Kelai, Peters-Nguyen,Sakamoto, Tajiri, Tamamoto, Takeuchi, and Vuen voted in favor. There were no votesagainst. The PIG’s recommendation was approved.

Deputy Fire Chief: PIG recommendation for 4% salary increase for the deputy fire chief.Commissioner Takeuchi moved to approve the PIG’s recommendation. The motion wasseconded by Commissioner Yuen. Commissioners Kelai, Peters-Nguyen, Sakamoto,Tajiri, Tamamoto, Takeuchi, and Yuen voted in favor. There were no votes against. ThePIG’s recommendation was approved.

Deputy Medical Examiner: PIG recommendation for 4% salary increase for the deputymedical examiner. Commissioner Yuen moved to approve the PIG’s recommendation.The motion was seconded by Vice-Chair Tamamoto. Commissioners Kelai, PetersNguyen, Sakamoto, Tajiri, Tamamoto, Takeuchi, and Vuen voted in favor. There wereno votes against. The PIG’s recommendation was approved.

Band Director: PIG recommendation for 4% salary increase for the band director. Vice-Chair Tamamoto moved to approve the PIG’s recommendation. The motion wasseconded by Commissioner Tajiri. Commissioners Kelai, Peters-Nguyen, Sakamoto,Tajiri, Tamamoto, Takeuchi, and Yuen voted in favor. There were no votes against. ThePIG’s recommendation was approved.

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Corporation Counsel: PIG recommendation for 7% salary increase for the CorporationCounsel. Commissioner Peters-Nguyen moved to approve the PIG’s recommendation.The motion was seconded by Commissioner Kelai. Commissioners Kelai, PetersNguyen, Sakamoto, Thjiri, Tamamoto, Takeuchi, and Yuen voted in favor. There wereno votes against. The PIG’s recommendation was approved.

First Deputy Corporation Counsel: PIG recommendation for 4% salary increase for theFirst Deputy Corporation Counsel. Commissioner Tajiri moved to approve the PIG’srecommendation. The motion was seconded by Vice-Chair Tamamoto. CommissionersKelai, Peters-Nguyen1 Sakamoto, Tajiri, Tamamoto, Takeuchi, and Yuen voted in favor.There were no votes against. The PIG’s recommendation was approved.

Schedule of salaries of the deputies of the Corporation Counsel: PIG recommendationfor 4% increase for the schedule of salaries of the deputies of the Corporation Counsel.Commissioner Takeuchi moved to approve the PIG’s recommendation. The motion wasseconded by Commissioner Yuen. Commissioners Kelai, Peters-Nguyen, Sakamoto,Tajiri, Tamamoto, Takeuchi. and Yuen voted in favor. There were no votes against. ThePIG’s recommendation was approved.

Schedule of salaries of the deputies of the Prosecuting Attorney: PIG recommendationfor 4% increase for the schedule of salaries of the deputies of the prosecuting attorney.Commissioner Yuen moved to approve the PIG’s recommendation. The motion wasseconded by Commissioner Kelai. Commissioners Kelai, Peters-Nguyen, Sakamoto,Tajiri, Tamamoto. Takeuchi, and Yuen voted in favor. There were no votes against. ThePIG’s recommendation was approved.

B. ADOPTION OF RESOLUTION AND ACCOMPANYING FINDINGS OF FACTESTABLISHING THE SALARIES AND SALARY SCHEDULES FOR FISCALYEAR 2019. SAID RESOLUTION SHALL BE FORWARDED TO THE MAYORAND CITY COUNCIL PURSUANT TO SECTION 3-122.2 OF THE CHARTER.

Chair Sakamoto noted that pursuant to the City Charter, any action by the Commissionaltering salaries shall be by resolution accompanied by Findings of Fact. He called for ashort recess in order for the draft Resolution and Findings of Fact to be passed out at2:36 p.m.

RECONVENE

Chair Sakamoto called the meeting back to order at 2:37 p.m.

Chair Sakamoto noted that the draft Findings of Fact and Resolution provided to theCommissioners were substantially in the form to be submitted to the Council and theMayor and asked if there were any questions or proposed changes to the language ofthe Findings of Fact or Resolution. Vice-Chair Tamamoto asked that the Findings ofFact include language noting that all of the Commission’s meetings were held inaccordance with applicable laws for public notice (both electronic and the public hearing

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notice published in the Star-Advertiser) and that the Commission kept in compliance withthe Sunshine Law.

Chair Sakamoto called for a short recess in order for the requested revisions to be madeto the Findings of Fact at 2:38 p.m.

RECONVENE

Chair Sakamoto called the meeting back to order at 2:59 p.m.

Commission Kelai moved to approve the revised Findings of Fact and Resolution, whichwere substantially in the form to be submitted to the Mayor and the City Council. Themotion was seconded by Commissioner Tajiri. Commissioners Kelai, Peters-Nguyen,Sakamoto, Tajiri, Tamamoto, Takeuchi, and Yuen voted in favor. There were no votesagainst. The revised Findings of Fact and Resolution were approved.

Chair Sakamoto stated that the finalized Findings of Fact and Resolution had beenapproved and were ready for the commissioners’ signatures. He further stated that theFindings of Fact and Resolution would be submitted to the Mayor and Council prior toMay 1, 2018 in accordance with Section 3-122.2 of the Revised Charter of the City andCounty of Honolulu.

6. ADJOURNMENT

There being no further business, Commissioner Kelai moved to adjourn the meeting,and Commissioner Peters-Nguyen seconded the motion. Chair Sakamoto noted that the2018 Salary Commission had completed its function as set forth under the City Charterand excused the members until the convening of the 2019 Salary Commission. Hethanked the commissioners for their participation and service. Hearing no objectionsfrom the seven Commissioners present, the meeting adjourned at 3:01 p.m.

Respectfully submitted,

Todd SwisherLegislative Analyst

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