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HomeMy WebLinkAboutCOM 0765.000 2020-2022 i �HSY•OF k*� a° °• +. Lee E.Lord Managing Director Mitchell D.Roth Mayor •,°a_� ; Robert H.Command o.° tf*Tw=M°"•pt`` Deputy Managing Director F°OF°MF` I &UHN lif phifunvi (offirr of fhr,'Mayor 25 Aupuni Street,Suite 2603 • Hilo,Hawaii 96720 • (808)961-8211 Fax(808)961-6553 KONA: 74-5044 Ane Keohokalole Hwy.,Bldg.C • Kailua-Kona,Hawaii 96740 (808)323-4444 Fax(808)323-4440 MEMORANDUM Date: April 07, 2022 rte° c To: Council Chair Maile David And Members of the County Council County of Hawaii Hilo, HI 96720 From: Pomaika'i Bartolome, Executive Assistant to Mayor Roth RE: Per Councilmember Ashley Kierkiewicz's request, we have located and formatted the 2018 Cost of Government Commission Recommendations. We are pleased to be submitting the following recommendations to the County Council for review. Comm. No. 1�9- Ref. To: County of Hawaii is an Equal Opportunity Provider and Employer. Ref, Date APR 1 9 2022 i I Lee E.Lord } Managing Director Mitchell D.Roth MayorRobert H.Command Deputy Managing Director Caunfv aaC AaaVi (offirr of thr avar 25 Aupuni Street,Suite 2603 • Hilo,Hawaii 96720 • (808}961-8211 • Fax(808)961-6553 KONA: 74-5044 Ane Keohokalole Hwy.,Bldg C • Kailua-Kona,Hawaii 96740 (808)323-4444 • Fax(808)323-4440 April 4, 2022 2018 COST OF GOVERNMENT COMMISSION During the formation of the charter-mandated Cost of Government Commission in 2022, it was discovered that the findings of the 2018 Cost of Government Commission (COG) were never reported to the Hawaii County Council or the Managing Director, as prescribed by 5-2-2(d) of the Hawaii County Charter.This oversight has been attributed to the attention given to the 2018 Leilani Estates volcanic emergency, which started May 3, 2018 and was declared finished on Sept. 4.While the oversight is unfortunate,an opportunity presented itself to examine the value of COG's recommendations and the resulting actions by the county more than three years after COG completed its work. Optimize Revenue Generation Recommendation:Expand the real property tax base through an efficient building permit system. Response: The Epic electronic permitting system has been implemented. Recommendation: Strategically invest in those county facilities used by visitors to optimize the visitor proportion of GET surcharge generation and to justify increased TAT allocations or HTA grants with enhanced maintenance and improvements. Response: County facilities most likely used by visitors would be parks, and specifically beach parks. Parks and Recreation has been systematically replacing cesspools with accepted methods of wastewater disposal in various parks, and using that opportunity to make other value-added park improvements. Recommendation: As a general rule,cost of services should be distributed to those whom benefit from those services through user fees;however,subsides should be determined and designed when appropriate to encourage use by youth, elderly and families. Response: Most organized, non-kupuna activities and programs have user fees. These include summer fun, park use, camping, zoo, pavilions, permitting and sewer fees. If there is no fee, the number of users is usually so small that the cost of collecting the fee (at the pool, for instance) would be higher than what a reasonable fee would net. Charging for emergency services is tricky as people may choose not to call for help if they are worried about being billed. The golf subsidy is one granted out of equity as there is no municipal golf course in West Hawaii. County of Hawai'i is an Equal Opportunity Provider and Employer. Prudent Expenditures Recommendation:Prioritize health and safety core facilities allocated equitably around the island based on level of service standards. Response: The Hawaii Police Department maintains police stations in eight Districts (North and South Kona are a single police district), which have been in place for decades based on calls for service and the staff allocated for each. The newest facility is the Pahoa Police station, completed in 2009. Although originally planned as a substation, it serves as the main Puna Station since Keaau lacks adequate space to accommodate personnel assigned, so Keaau currently is utilized as a substation. A new facility for Keaau is the first priority on the police CIP, again determined by calls for service.Additionally, on the departmental CIP are long overdue facility maintenance and improvements, as well as new facilities in South Kona and Ka'u to address the ever increasing population and calls for service. The Hawaii Fire Department provides island-wide fire, medical, hazmat, search-and-rescue and ocean safety services. HFD respond to about 27,000 calls a year. To accomplish this HFD has 20 paid fire stations with 204 firefighting personnel, 18 volunteer stations, 120 volunteer firefighters, 16 primary ALS ambulances, 100 EMS personnel, 14 lifeguard towers at 12 beaches, 62 lifeguards, two Hazmat Response Units, 30 Hazmat responders, two search-and-rescue response units, 30 search-and-rescue responders, helicopters, boats and a variety of other response apparatuses. HFD is restrained by aging infrastructure and equipment, limited funding and lack of positions. HFD's fire and 01S budget is comparable to the Kauai Fire Department, which staffs a total of eight fire stations with 123 firefighting personnel and 60 lifeguards. Recommendation: Vehicle fleet costs consume a significant proportion of the budget. Develop a comprehensive system that consolidates dispatch and maintenance to the extent feasible using best available technology, and utilizes vehicles that cost effectively deliver the intended service results. Response: This administration intends to reduce our carbon footprint by converting to ZEV, or a Zero-Emissions Fleet, along with the possibility of supporting low-median income residents with fleet and charging infrastructure. Sustainability Partners entered into a statewide contract in 2021 to supply government with EVs. Hawaii County is a party in this contract and is already in the process of implementation. Recommendation: Incorporate resiliency in the budget to be able to respond to disasters and economic downturns. Response: Implemented. The county has both a Budget Stabilization and a Disaster and Emergency Fund. The Budget Stabilization Fund had a balance of$7.5 million at the end of FY21. The Disaster and Emergency Fund has a balance of$5.9 million at the end of FY21. The voters passed Charter Amendment 17 the 2020 election which sets aside one percent of the annual real property taxes collected to fund the Disaster and Emergency Fund until it reaches a fund balance of$20 million. Recommendation: County should continue subsidized housing for low-income residents, elderly and disabled, if operations can break-even with state or federal grants. Otherwise, county should consider privatizing to nonprofits or private sector who are in the business of efficient property management. County of Hawai'i is an Equal Opportunity Provider and Employer. 3 a I i i Response: All of these have been taking place in the county since the 1970s. Section 8 Rent Vouchers are administered by the county. Kulaimano Elderly Housing, Hale Kikaha and Emergency Shelter, Ouli permanent housing and Uluwim Transitional Housing are very good examples of county-built,privately managed facilities. General Recommendations Recommendation: Move to a biennial budgeting process. This reduces cost and relieves political pressure by having it occur on non-election years. Hybrid biennial or two annual budgets created together should also be considered. Response: Not Implemented. The county budgeting environment is constantly changing with periodic collective bargaining changes,unfunded federal and state mandates,fluctuating real estate values and ever changing economic conditions. While a biennial budget process in theory sounds like it could save time and cost, in practice we believe it could set the county up for failure as numbers would be locked in and less flexible should we hit an economic downturn. In reality, updating forecasts and assumptions annually would make more budget adjustments to be manually posted to our accounting system a more difficult process than doing a new budget. Recommendation: Create a regular calendar event (quarterly?) to allow the Mayor and County Council to discuss COG recommendations. Response: Not implemented,but the administration is amenable to further discussion. Recommendation: Revise COG charter to allow two years for COG Commission to run during the middle two years of the mayor's four-year term. This will allow acquisition of additional specific data and improve report recommendations. Response: Feasible, but not implemented. This will require a charter change. It was not recommended to the last Charter Commission. Recommendation: Researching solutions implemented by other municipalities in other counties and states should be a key step in solving financial issues within the County. Response: Already in place. County is continually monitoring revenue and expense solutions put in place by other municipalities. We have attended many peer-to-peer conferences to discuss common challenges and successes. Many substantive changes have been made because of this process. Recommendation: Provide on-line, classroom, and/or other continuing education opportunities to every supervisor/manager in every department, to stay updated on skills in the latest trends in fundraising, social media campaigns,building community partnerships and corporate sponsors. Response: Training opportunities are normally handled at the departmental level and money is budgeted for this purpose. The county takes advantage of continual training in all aspects of government.Our department heads are certainly interested in the latest trends in fundraising,social media campaigns, building community partnerships and corporate sponsors and may take advantage of these programs if offered. HR also conducts or hosts training to help supervisors update their skill sets. County of Hawai'i is an Equal Opportunity Provider and Employer. i t i I I I Recommendation: Update public web access for all county services and facilities to be mobile/cell phone friendly. Response: Soon to be implemented. The Office of the Mayor will soon roll out a mobile app that will serve this purpose. Recommendation: Initiate a paperless system for payments, registrations, reservations and communication with the public consistently throughout all departments. Response: Not implemented, at least at a policy level. There is an example of this in vehicle registration and licensing. DWS also has an online payment system, which does not add a convenience fee. However,the system is private and a convenience fee is levied by the vendor for each transaction,raising the cost of the transaction. Recommendation: Review distribution of county grants for measurable benefit. Response: Innovation grants from R&D require progress and final reports, which are available for review. In the near future, these reports will serve an evaluation and analytical role. This question { may also be related to the annual Grants-in-Aid program distributed by the council. Recommendation: Eliminate the homeowner's real property tax exemption for unpermitted dwellings. Response: Not implemented. While constructing dwellings without proper permits is highly discouraged, the homeowner exemption is a benefit tied to residence status, not a physical structure. Planning and Public Works have enforcement mechanisms to deal with unpermitted structures. However, the benefits of such a move should be measured against the consequences, i.e. less money for everyday needs and possibly homelessness. Recommendation: Each remote county testimony site should use the same equipment, insuring quality technical support. Response: The physical cost of such a site is not so much a problem as it is to find and pay personnel to provide technical support, especially at night or on weekends. Remote county testimony sites also have to take into account ADA requirements, which adds to the duties of conducting remote virtual activities. The Office of the Mayor is working to meet this challenge for the 40 or so boards and commissions it manages as laws regarding on-line meetings are in flux as we move away from the pandemic. Recommendation: The Elections Division should issue CDs or electronic files of their registered voters instead of using reams of paper to candidates. Response: Implemented. Recommendation: Implement a wireless, web-based, real-time, preventative maintenance program for all county equipment. Response: As a policy matter, this has not been implemented at a county-wide level. However, each department does keep track of maintenance needs of its assets 1 Recommendation: Strategically invest in those county facilities used by visitors to optimize the visitor proportion of GET surcharge generation and to justify increased TAT allocations or HTA grants with enhanced maintenance and improvements. County of Hawai'i is an Equal Opportunity Provider and Employer. Response: County facilities most likely used by visitors would be parks, and specifically beach parks. Parks and Recreation has been systematically replacing cesspools with other safer methods of wastewater disposal in the various parks, and using those opportunities to make other value- added improvements to the parks. In addition to the strategic investment optimization, the HTA Destination Management Action Plan (DMAP) for Hawaii Island also provides a variety of methods to look at tourism/visitor industry expenditures by the county. In addition to user fees,the state has a responsibility to fund services shifted the county. The HTA Destination Management Action Plan for Hawaii Island and the County Tourism Strategic Plan provide recommendations for developing a regenerative,pono,place-based visitor sector on the island. Recommendation: As a general rule, cost of services should be distributed to those who benefit from those services through user fees; however,subsidy should be determined and designed when appropriate to encourage use by youth, elderly, and families. Response: User fees have been imposed for services where logical and fair, such as summer fun, camping and pavilion reservations. Application fees are common in planning and public works. In some cases where there are no user fees,the number of users is so small that the cost of collecting a fee is higher than what a reasonable fee would net the county. Charging for emergency services can be tricky as people may not call if they feel they will be billed for an ambulance, for instance. Subsidies are granted for certain services, such as the West Havvall Golf Subsidy program. Mass transit system is also heavily subsidized. BY DEPARTMENT Department of Public Works Recommendation: Expand support for EnerGov software installation to allow streamlining of permit process. Response: Implemented. Recommendation: Aggressively recruit for missing staff. Response: Implemented. There is a severe shortage of people who are willing to work at any job, both in the private and public sectors. Recommendation: Schedule staff and applicant meetings for permit pre-submittal to include all reviewing departments. Response: New paperless permitting system has made this step obsolete. The system is capable of on-line submittal and concurrent review. Recommendation: Ensure transparent and uniform application of building code. Response: Previously implemented. The ethics code requires fair and courteous service to all citizens. Recommendation: Make necessary code changes to correct outdated hindrances to expeditious permit processing. Response: The Administration is always willing to consider code changes that will streamline and permit processing conducted by the county. County of Hawai'i is an Equal Opportunity Provider and Employer. j t i Recommendation: Budget for overtime to aid in elimination of permit approval backlog. Response: Implemented. Department of Parks and Recreation Recommendation: Initiate or increase user fees and/or parking fees, to more closely match operating cost to county. Response: Parks is currently planning to impose user fees at county aquatics centers and the Panaewa Zoo and Equestrian Center. Parks is also in discussions with an NGO and vendor to establish a pilot program that would charge non-residents a parking fee at Kahaluu Beach Park. Recommendation: Utilize advertising methods to increase visitors, sponsors, and donors. Response: There is no shortage of visitors coming to Hawaii Island, significantly West Hawaii. Sponsorships and donations are a tricky subject loaded with questions regarding procurement and ethics.However, the administration is open to all new and innovative ideas. Recommendation: Initiate/improve online reservations and booking for all county recreations facilities. Response: Being implemented. Permits/reservations at certain recreational facilities are available online (ex: County camping facilities, Gilbert Kahele Recreation Area bunkhouses and cabins) through ehawaii.gov. Parks is working to bring more reservations online, including pavilion rentals, field reservations and the entire Hoolulu Complex area. Recommendation: Support increased grounds maintenance for zoo. Response: Parks has requested additional grounds maintenance staff through a supplemental request in the FY22/23 budget. Recommendation: Sell/relinquish to state the Panaewa Equestrian center. Response: Parks is not agreeable to this suggestion. Recommendation: Uniform rental agreements throughout county. Response: Parks is currently reviewing all leases and rental agreements. Recommendation: Review and adjust golf course user fees and subsidies by user group. Response: Parks initiated a three-tier user fee increase which increased daily fees and monthly card fees. Weekday resident and non-resident daily fees increased by a total of$7 ($3 increase in 2020; $2 increase in 2021; final increase of$2 in January) Weekend resident and non-resident daily fees have increased by a total of$10 ($5 in 2020, $2 in 2021, $3 in January).Monthly cards have increased by$10 since 2020. Department of Environmental Management Recommendation: Adjust land fill fees for net-zero budget. Response:Not implemented. County of Hawaii is an Equal Opportunity Provider and Employer. i Recommendation: Promote home composting. Response: Not implemented, although many residents have already started practicing it. Recommendation: Promote wastewater recycling for Agricultural use. Response: This is how the Kealakehe Wastewater Treatment Facility will eventually dispose of its effluent. Much of the design is in place. The project lacks funding. Recommendation: Simplify application process to utilize the landfill. Response: Not implemented. Recommendation: Purchase/develop efficient operations and maintenance record system. Response: In the implementation process to maintain and protect assets. This received funding from the EPA in 2021. Recommendation: Review feasibility of wastewater plants in Ka'u. Response: This issue is under an administrative order of consent with the Environmental Protection Agency. Recommendation: Consider moving solid waste to a private company. Response: The Supreme Court has opined that services traditionally offered by the county cannot be privatized unless negotiated with the unions. The unions have many concerns about privatization. Hawai'i Police Department Recommendation: Convert all police vehicles to fleet vehicles. Response: This has been a controversial issue for decades, with several studies conducted on the feasibility various options for a fleet program (i.e. partial, full, take-home, stationed). The studies varied as to costs factors, identifying pros/cons to all and there was no clear statement which program is most cost effective. Although the perception is that the current subsidized vehicle program is more costly that a fleet, the studies found answers to be skewed, as officers are responsible for purchase, maintenance, repair and replacement of vehicles, costs not adequately reimbursed by the subsidy. The studies found start-up costs to convert to a full fleet programs were well beyond what the county is able to fund, and the program would need to be phased in over a number of years, thereby driving up costs. One of the advantages of a subsidized vehicle program and a benefit to the county,is that during a natural disaster(i.e.tsunami,earthquake,flooding, etc.) police are able to mobilize the entire compliment of officers, not only on-duty from the police stations, but from those off-duty from home. With a fleet program this would not be possible and this was recognized by a previous county administration which had considered a transition to a fleet program. Police need to know a transition to a fleet be correctly implemented, including maintenance/repair facilities in various locations, adequate numbers of vehicles to maintain the same level or greater of service, and replacement vehicles for mechanical failures and accidents. To properly operate a full fleet program,the county would need to ensure adequate annual funding is maintained each fiscal year to purchase new vehicles. This has been the downfall in other jurisdictions as this is a prime target during lean budget years. County of Hawaii is an Equal Opportunity Provider and Employer. i 1 Recommendation: Utilize existing county maintenance facilities. Response: Implemented. Office of Aging, Office of Housing and Community Development Recommendation: Continue to obtain Federal Grants for senior housing. Response: Implemented and ongoing. The county continues to use numerous federal and state fiinding programs available for affordable housing including senior housing. Existing county owned senior housing projects such as Kulaimano Elderly have received federal grants through the Community Development Block Grant (CDBG) and for renovation and improvements. The county, in partnership with non-profits, have utilized various federal and state grant and loan programs such as Low Income Housing Tax Credit(LIHTC), Hula Mae Multi Family (HMMF), Rental Housing Revolving Fund (RHRF) and Project Based Voucher (PBV) to subsidize and develop new privately managed senior housing projects. Recommendation: Streamline permitting approval for senior housing. Response: Existing county senior housing projects are full and there is normally a waiting list for units. The county is able to streamline the construction of senior housing through the use of HRS 201H-38 and HRS 46-15 which allows the county to waive and exempt requirements for affordable housing projects to reduce cost and expedite permitting. Recommendation: County should continue subsidized housing for the lower income elderly and disabled if operations can break-even with state or federal grants; otherwise, the county should consider privatizing to nonprofits or private sector who are in the business of efficient property management. Response: This has long been the practice. The county continues to subsidize housing for lower income elderly and disabled through its Section 8 housing voucher program to individuals as well as the Project Based Voucher program at county owned projects such as Kulaimano elderly, Hale Kikaha supportive, and Uluwini transitional. The county has increased its efforts to utilize state- owned lands to lease to non-profits for the development and private management of elderly housing projects. Planned multi-family housing in Waikoloa will be built in a partnership with a non-profit, which will manage it or farm out to a third party. Recommendation: Introduce our seniors as mentors into K-University classrooms. Response: Seniors interested in mentoring are referred to the Foster Grandparent program. Most mentoring is offered to children K-8. The Foster Grandparent program is operated by the State Department of Human Services in cooperation with the Office of Aging. Recommendation: Increase public information sharing from the Office of Aging. Response: Information is disseminated through the Aging and Disability Resource Center(ADRC hcoahawaii.org) and our quarterly Silver Bulletin newsletter. Also, our monthly care givers newsletter and our Senior Services Directory is online or hardcopy by request. Aging also features ADRC information lines in both Hilo and Kona. Staff has also been doing zoom presentations to various agencies and once the pandemic subsides we will again participate in health fairs and in person workshops. County of Hawaii is an Equal Opportunity Provider and Employer.