HomeMy WebLinkAboutRES 142 Draft 02 2020-2022A RESOLUTION AUTHORIZING THE FORMATION OF A WORKING GROUP TO DEVELOP A CONDITION ASSESSMENT OF COUNTY ASSETS AND TO URGE THE ADMINISTRATION TO UTILIZE THIS ASSESSMENT TO TRANSFORM THE
DEVELOPMENT AND REPORTING OF THE CAPITAL BUDGET AND CAPITAL PROGRAM AS OUTLINED IN ARTICLE X, SECTION 10-6, OF THE HAWAIʻI COUNTY CHARTER.
WHEREAS, on March 1, 2021, Mayor Mitchell D. Roth transmitted to the Hawaiʻi County Council the proposed Operating Budget and the proposed Capital Budget and Six-Year Capital Improvements
Program for fiscal year 2021-2022; and
WHEREAS, on April 13, 2021, during the departmental budget review, Mayor Mitchell D. Roth addressed the County Council and stated that our County is in a race against time with decrepit
and outdated infrastructure; and
WHEREAS, the process of developing and reporting on the capital budget and capital program should be subject to critical review in order to ensure the highest and best use of limited
resources based on priorities and community needs; and
WHEREAS, Article X, Section 10-6, of the Hawai‘i County Charter (hereinafter “the Charter”), provides a framework for the development of a capital budget and capital program; and
WHEREAS, Section 10-6(a) of the Charter states:
“The capital budget shall contain at least the following:
(1) A simple, clear, general summary of the detailed contents of the capital budget.
(2) The capital improvements pending or proposed to be undertaken within the ensuing fiscal year, together with the estimated cost of each improvement, the estimated operating
cost, and the pending or proposed method of financing it. Capital improvements shall be prioritized based on criteria aligned with the general plan, community development plans, emergency
expenditures and other pertinent functional plans.
(3) Capital expenditures to be financed from current revenues in the ensuing fiscal year.”; and
WHEREAS, Section 10-6(b) of the Charter states:
“The capital program shall be used by the council for informational purposes and as a guide for the estimated costs of the proposed capital improvements of the county for the ensuing
six fiscal years and shall contain at least the following:
(1) A simple, clear, general summary of the detailed contents of the capital program.
(2) The capital improvements pending or proposed for the ensuing six fiscal years, together with the estimated cost of each improvement and the proposed method of financing it.
(3) Such other information as the council or mayor may request.”; and
WHEREAS, there is a clear distinction that Section 10-6(a) pertains to the capital budget and Section 10-6(b) pertains to the capital program; and
WHEREAS, Article VI, Chapter 6, Section 6-6.3(a), of the Charter, states that the director of finance shall “(a)ssist the mayor in the preparation and execution of the operating budget,
operating program and capital budget”; and
WHEREAS, Article VI, Chapter 7, Section 6-7.2(b)(4), of the Charter, states that the planning director shall “(r)eview the lists of proposed capital improvements contemplated by agencies
of the county and recommend the order of their priority”; and
WHEREAS, looking back 15 years at the capital budget and capital program provides little guidance on project measures and priorities, except for those tied to compliance or mandates
from other authorities or controls; and
WHEREAS, the concept of “budgeting for outcomes,” developed by authors David Osborne and Peter Hutchinson, also known as priority-based budgeting, looks at desired results across government
and encourages thinking beyond program inputs and outputs, focusing on measurable outcomes to determine how well programs and services benefit the public; and
WHEREAS, the concept of “condition assessment” is an essential core practice of asset management, which entails an analysis of the condition of infrastructure and would showcase the
extent to which County assets are performing, enabling maintenance plans and opportunities for asset optimization; and
WHEREAS, the absence of a condition assessment makes it difficult for the County Council and members of the public to fully understand the selection and prioritization of projects in
the annual capital budget; now, therefore,
BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAI‘I that Council Member Ashley Kierkiewicz (Chair of the Committee on Planning) and Council Member Susan “Sue” Keohokapu-Lee Loy (Chair
of the Committee on Public Works and Mass Transit) are authorized to convene and co-chair a working group to be composed of representatives from the Department of Finance, Planning
Department, Department of Public Works, Office of the Corporation Counsel, and Office of the Mayor.
BE IT FURTHER RESOLVED that the working group is authorized to develop a condition assessment tool to rate the condition of assets and will submit the rating-tool framework to the County
Council prior to the start of the next budget review cycle for fiscal year 2022-2023.
BE IT FURTHER RESOLVED that the Administration is urged to utilize the working group’s condition assessment rating tool when developing the capital budget for fiscal year 2022-2023 and
to provide a clear distinction between the capital budget and the capital program for fiscal year 2023-2024.
BE IT FURTHER RESOLVED that the working group will meet at least three times and dissolve one year from the date this resolution is adopted.
BE IT FINALLY RESOLVED that the County Clerk shall transmit a copy of this resolution to the Honorable Mayor, the Managing Director, and the Director of Finance.