HomeMy WebLinkAbout2011-06-24 Cost of Government Draft Report
REPORT OF THE
COST OF GOVERNMENT
COMMISSION
COUNTY OF HAWAI`I
2010-2011
2010-2011 Cost of Government Commission members
Marilyn Nicholson, Chair
Gloria Wong, Vice-Chair
Kenneth Armour
Glen Matsuda
Eileen O’Hara
Patricia Provalenko
William Takaba, ex-officio
TABLE OF CONTENTS
Introduction 1
Executive Summary 2
Part 1 – Overarching Cost and Revenue Concerns for the County of Hawai‘i 6
A. Changing the Way We Do Business
B. Process and Procedures Followed by the COGC
C. Essential Services Provided by the County
Part 2 – Specific Recommendations 11
A. County Wide Recommendations to Save Costs and Increase Revenues
1. Employee Benefits and Compensation
a. Compensation Package
b. Reimbursement for Expenses
c. Travel Policies
d. Staff Consolidations/Eliminations and Overtime Reduction
e. Creation of Positions to Enhance Revenues
2. Technology Adoption
3. Contracting Process
4. Budget Review Process
5. Boards and Commissions
6. Miscellaneous
B. Department Specific Recommendations to Save Costs and Increase Revenues
1. County Clerk
2. Environmental Management
3. Finance
4. Fire
5. Mayor’s Office
6. Parks and Recreation
7. Planning
8. Police
9. Public Works
10. Real Property
11. Human Resources
Part 3 - Conclusion 18
Appendices 19
A. COGC Requests for Information
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INTRODUCTION
As stated in the Hawai‘i County Charter, Section 5-2.1, the policy of the County is to promote
economy, efficiency and improved service in the transaction of the public business in the
legislative and executive branches of the County by:
1. Limiting expenditures to the lowest amount consistent with the efficient performance of
essential services, activities, and functions.
2. Eliminating duplication and overlapping of services, activities, and functions.
3. Consolidating services, activities, and functions of a similar nature.
4. Abolishing services, activities, and functions not necessary to the efficient conduct of
government.
The Cost of Government Commission (COGC) is mandated by the County of Hawaii to be
convened every four years and whose term is for eleven months. The 2010-2011 COGC met
for the first time on July 30, 2010. The COGC is designated to include one representative from
each Council district, for a total of nine members (plus the Managing Director as an ex-officio
member). A lack of willing and qualified volunteers left the 2010-2011 Cost of Government
Commission with only six members, none of whom represented the Leeward side of the island.
Although it is impossible to say how this lack of representation may have affected the findings
and recommendations in this report, we can say that it did hamper the COGC’s ability to gather
a quorum for its bi-monthly meetings. Despite this, the COGC met regularly throughout the past
eleven months to arrive at the report you have before you.
The report itself is organized with an Executive Summary and three (3) main parts. The
Executive Summary precedes the body of the report and provides a comprehensive discussion
on the COGC’s top priority recommendations and justifications for taking those actions. Part 1
provides a discussion on the overarching costs and revenue concerns for the County of Hawai`i.
In that section the commissioners discuss the need for a change in how government
approaches the tasks of providing services. The process and procedures followed by this
commission in developing the report are explained in this section which ends with a discussion
of what essential services our County should and does provide to the public. In Part 2 we
provide specific recommendations on measures that could save the County considerable costs
and/or provide additional sources of revenues, Part 2 is broken down into two sections; the first
describes County wide recommendations and the second provides department specific
recommendations. Part 3 provides a general discussion on the potential outcomes of adopting
all, or some, of these recommendations, and includes the commissioners’ concluding remarks.
Although his remarks came late in the process, Mayor Billy Kenoi appeared before the
commission to answer questions and give us a status report on County funding issues. At that
time, he remarked:
Government of tomorrow is not going to look like the government of yesterday.
Government is going to be very different going forward. We have to recognize that.
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EXECUTIVE SUMMARY
The 2010-2011 COGC commissioners are pleased to provide an extensive list of
recommendations on measures the County may consider adopting to save costs and enhance
revenues. In this executive summary, we are submitting a short list of action items, not
necessarily in priority order, which are taken from the comprehensive recommendations in Part
2 of this report. We would be very pleased for the Mayor and/or County Council to take
immediate action on the following:
Consolidate and coordinate the inspection and enforcement responsibilities of
1.
the Planning Department, Building Division, Real Property Tax Division,
Department of Environmental Management, and the State of Hawai`i Department
of Health (as contracted to the County) under an enforcement division
.
Justification: Consolidating enforcement and inspection efforts under one division will
allow for a more effective and timely response on regulatory violations that are under the
County’s jurisdiction. It would also allow for better interaction with State and Federal
agencies that may also have jurisdiction over a regulatory violation such that the public
is better served in resolving the issue(s). Consolidation may not require creation of new
positions, and may be achieved by transferring existing personnel.
Currently when there is a complaint or enforcement violation, personnel from several
departments or divisions are required to respond. There is an apparent lack of
coordination between inspectors’ observations and enforcement activities. Consolidation
of these functions under one division would result in cost savings as well as provide
more timely service to the public.
Propose a resolution to the State allowing each County to negotiate collective
2.
bargaining contracts with the Unions on behalf of the County.
Justification: Allowing the County to negotiate its employee contracts separately from
other counties in the State would allow Hawaii County to negotiate terms that are more
responsive to the economic conditions, regional disparities in cost of living, differences in
County operations, and demographics of the areas served. Private enterprise has
already adopted many cost saving measures, yet the County is unable to curb costs or
move toward more efficient operations due to the restrictions on the current negotiating
process.
Note: Many of the recommendations found under Part 2A of this Report concerning
employee benefits and compensation are related to this item.
Centralize grant writing efforts by creating a Grant Specialist position to work with
3.
all departments in the County to improve the County’s ability to receive funds
from various sources.
Justification: There are many public and private grant opportunities that the County is
not taking advantage of because it lacks personnel at the department level who have the
expertise and experience necessary to successfully identify, apply for, and administer
grants. A County Grant Specialist would also be able to foster intra-department
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partnerships and private sector collaborations that could leverage the County’s chances
of receiving funds and expand the scope of projects. Adding such a position has the
potential of increasing the County’s annual funding significantly.
Develop and implement a County-wide technology management plan
4..
Justification: A comprehensive IT Strategic Plan will allow the County to be more
productive and efficient in completing tasks expected of local government, avoid
duplication of services within and between County departments and increase the ability
of County departments to communicate online. Redesign of the County website would
allow it to be more user friendly for both internal County departments and the public. The
plan should identify ways to save money through computer and printer leasing and
networking. The plan should focus on ways to use all types of informational
technologies, including Laserfiche and Video Conferencing, to gain efficiency in
document management, reduce the physical storage of paper documents, and save the
cost of travel for County employees. Other technologies such as GPS vehicle tracking
could be considered to ensure efficient use of County fleet vehicles.
Review the internal process of procurement as to reduce change orders, facilitate
5.
contract renewals and speed up contract processing. Utilize technology such as
electronic signatures, electronic distribution, and online approvals to increase
efficiency.
Justification: Change orders and delays in contract processing cost the County money.
By modernizing the processes the County uses in its procurement efforts cost savings
would be realized.
Increase the annual renewal fee to commercial solid waste haulers from the
6.
current $25 and require all haulers to be current on solid waste bills to reduce
delinquencies. Delinquencies can be reduced by implementing software solutions
to coordinate collection of tipping fees at the scale house and ensure accounting
systems are able to read the data.
Justification: Currently there are a large number of delinquencies among the solid
waste haulers which can be remedied with a coordinated software system at the scale
houses that allows immediate access to accounting data. Implementing the requirement
that annual renewal fees for commercial solid waste hauler permits be issued only if the
hauler’s account is in good standing would allow the department an opportunity to collect
delinquent fees. Increasing the annual renewal permit fee would help fund operations at
the landfill.
Review the process for qualifying agricultural property tax benefits through the
7.
agriculture use and dedication programs, and require financial documentation to
verify and substantiate agricultural activity. Fine and/or revoke exemptions for
violators.
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Justification: There are widespread abuses to these tax benefits that cost the County
significant lost revenues. Inspections of properties claiming agricultural use are not
occurring on a regular basis and there is a wide interpretation with regard to what
constitutes agricultural activity. In order to qualify for an agricultural use program,
property owners should be required to provide financial documentation that at least
some portion of their income is derived, or will be derived, from the agricultural
production and/or processing activities on that parcel. Granting agricultural tax benefit
for casual agricultural activities such as growing a few fruit trees for personal
consumption and/or tethering a goat to keep down the grass should not qualify for
agricultural tax benefits. This tax benefit should be used to encourage an increase in
agricultural production in the County and not be used for undocumented purposes.
County property taxes are the largest source of revenue for County government and
revenues could increase if abuse of this agricultural use program is ended.
Eliminate the Homeowner’s Real Property Tax Exemption for unpermitted
8.
dwellings.
Justification: Unpermitted living structures are illegal and potentially pose health and
safety issues for the County. By providing a Homeowner’s Real Property Tax Exemption
for these properties, the County is tacitly supporting the continuation and spread of
unpermitted structures. Elimination of this exemption would encourage homeowner’s to
bring their living structures up to minimum County Building code standards in a
reasonable period of time, and generate additional revenues to help support this effort.
If the owner of an unpermitted dwelling receives a homeowner’s exemption, this
property is currently placed in the Homeowners Class. The tax rate on the homeowner’s
class is 56% - 66% less than properties in other classes. So with the benefit of the
homeowner’s exemption(s) and the lower tax rate, the property owner is likely to pay
less in property taxes than if no dwelling existed. Both items #7 and #8 in this summary
are important actions that the County can take to increase its revenues and should be
considered in combination with efforts to ensure that property tax revenues are
expended in an equitable fashion.
Impose a fee to be included in each parcel’s tax bill to help fund recycling, e-
9.
waste disposal, and help offset the cost of solid waste disposal and illegal
dumping clean ups.
Justification: In most places in the U.S., residential solid waste disposal fees are charged
directly to the customer either by private companies that perform the solid waste
collections or by the municipality in the case of public sector collection services. Thus,
the cost of solid waste disposal is not a burden on the city or county general fund. As
disposal fees are charged only at the County’s two landfills and disposal at the island’s
transfer stations is free to the public, the County should consider collecting a small fee
included on each property’s tax bill in lieu of instituting a pay as you throw system. The
COGC felt that instituting a solid waste disposal fee via the property tax bill would be
more cost effective than restructuring the County’s waste operations to create a pay as
you throw system. The property tax bill fee could be adjusted for TMKs that have
multiple structures or are zoned as multiple family dwellings.
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Limit attendance at off-island conferences/meetings and/or hold off-island
10.
conferences/meetings via Skype or video conferencing. Hold department and
division meetings via video conferencing. Utilize multimedia communication in
lieu of face-to-face meetings to reduce on and off-island travel.
Justification: As technology has improved, holding meetings through video
conferencing or Skype has become an accepted way to do business. It would be more
efficient and save the County money to conduct business using available technologies
including web-based meetings venues and video conferencing. The County has the
video conferencing capabilities and the IT Department indicated it needs to provide
training to more County personnel in the use of this technology. If the County requires
that attendance at conferences/meetings be achieved by utilizing technology,
considerable time and expense will be saved.
As part of our fact finding efforts, the COGC Commissioners queried County departments on the
status of efforts to implement department specific recommendations from former Cost of
Government Commissions. It was determined that very little follow through had occurred with
regard to implementing the previous commissions’ recommendations. As such, this commission
is concerned that the many recommendations contained herein may not be implemented or
acted upon in a timely manner. Therefore, we have taken the following further steps to support
the follow-through.
a) A presentation of the final document of recommendations will be conveyed to the Mayor,
County Council, and Department Heads before the end of the COGC term in June 2011;
b) The written final document will be posted online for public view.
c) The final document will be submitted to the two major newspapers on the Big Island (Hawai‘i
Tribune Herald and West Hawai‘i Today).
d) The COGC requests that the Mayor assign an administrative assistant to track the status of
the tasks approved by the mayor and submit a report on a quarterly basis to him on all
actions related to the recommendations.
e) The quarterly reports shall be provided to the next term COGC at their first meeting.
Also as part of its investigative efforts, the COGC received a presentation from the County’s
Green Team. As identified by the Green Team, delivering essential local government services
requires significant use of energy and resources. The COGC supports the efforts of the Green
Team to identify reductions in resource use that will lend to cost savings and meet substantially
objectives in County operations. In particular the COGC supports the recommendations the
Green Team has put forth in its draft report Chapter 6: Priorities for Action.
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Part 1 – Overarching Cost and Revenue Concerns for the County of
Hawai‘i
A. Changing the Way We Do Business
As the Commission investigated how our County government could reduce costs and enhance
revenues, we found that changing the way we do business as a County is imperative as we
st
advance into the 21 century. Just as innovation and adaptability are the action words for
private enterprise, these same concepts must motivate the public sector if we are to reduce the
cost of government yet still provide essential services to support the quality of life its citizen’s
desire.
As the Commission gathered input from departments, legislators and County employees, we
found that many excellent suggestions to save costs and enhance revenues were not being
taken into consideration. The lack of flexibility in the negotiation of union contracts prevents the
application of reasonable and efficient cost saving measures. The absence of a County-wide
technology plan promotes inefficiencies of operations. A resistance to adoption of simple cost
saving measures such as online approvals and electronic signatures makes the County’s
contracting process slow and unresponsive. Continuing practices such as extending
homeowner exemptions to unpermitted buildings not only short changes the County coffers, but
encourages unsafe and unsanitary living conditions while forcing all the County’s residents to
pay higher tax rates to fund this practice.
The Commission decided to tackle its mandate by looking not only at ways to reduce the costs
of government, but also by identifying ways to enhance revenues. Are building permit fees too
low? Could the County charge user fees for services that are currently offered for free? We
looked at what services really are the responsibility of the County to provide and how we can
continue to support the needs of the island’s population and visitors without being forced to
reduce public services to an unacceptable level. This Commission served during an especially
difficult economic downturn as reflected by furlough days and implementation of other drastic
measures to contain costs, yet the recommendations provided herein should be guiding
principles for our County government even when the economy is expanding.
We organized our efforts to address a theme which was to investigate the essential services of
County government. We then identified three overarching issues that the County must address:
Technology, Contracting, Collections and Fees. The Commission organized into subcommittees
and solicited input from all of the County’s workforce, its elected and appointed officials, and
members of other Boards and Commissions. We used the information and feedback to develop
the recommendations in this report. The specific recommendations of the Commission are
presented in a top down manner. First we present County-wide actions that need to be
addressed. Then we provide recommendations specific to some of the County’s departments.
Lastly we provide our concluding remarks and reflections on the process we undertook and its
potential outcomes. The bottom line for our findings is that the way we do business as a local
government has to change.
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B. Process and Procedures Followed by the COGC
Early on, reviewing the prior Cost of Government reports issued in 2003 and 2007, and
in discussion with current County employees, COGC members felt some concern about the
commitment of County government to take its recommendation seriously. However, given the
challenging environment, especially the fiscal restraints that the County now faces, it is hoped
that the recommendations included in this report will receive a careful and thoughtful reading by
the Mayor, members of the County Council, and the heads of all County departments.
The COGC commission, which held 18 meetings over the course of eleven months to
formulate this report, utilized a number of methods in its research. Surveys were developed and
sent to all County employees. Departmental inquiries that focused on specific questions as well
as requests for updated responses on actions recommended in previous COGC reports were
also solicited. Interviews were conducted with various County employees, including Department
heads and/or their designated representatives, employees, administrative and support staff, and
affiliated members of the public. Various County documents and focused internet research was
also helpful in formulating the basis for some of the interview questions as well as in preparing
this report. Due to time constraints public input, although welcomed, was not directly solicited.
Summary COGC Efforts:
Theme:
Identify What Services the County is Responsible to Provide
Overarching Policy Issues:
Contracting Process * Collection & Fees * County Technology Plan
Invited Department Heads, Corporation Counsel, and personnel who deal with these
processes and procedures to speak with COGC
Focus Areas (3 Subcommittees)
Operations/Budget Revenue Enhancement Technology Adoption
Recommendations and Collections
and Consolidation
Analyzed Responses to Questionnaires and Conducted Interviews with Departments
and Personnel
Actions Taken by Commission:
Provided a Questionnaire to County Agencies, Departments and Commissions via Letter
Provided a Questionnaire to County Employees via Payroll Notice
Logged and Categorized Responses to Questionnaires
Received Presentation from County Green Team
Analyzed Responses Regarding the Implementation Status & Adoption of 2007 COGC
Recommendations
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Requested and Received Results from an Employee Survey that Dominic Yagong
conducted in the Spring of 2009
Received Presentations and Conducted Q&A with Specific Departments and County
Administration Offices including a member from the Council and the Mayor
C. Essential Services Provided by the County
Identification of the Essential Services of County Government, and Discussion of
Relevance to
The Hawai‘i County Government
At one of the first COGC meetings it was determined that a guiding principle required to study
and investigate the organizations and methods of operations of all departments, commissions,
boards, offices and other instrumentalities of all branches of the county government would be to
identify the essential services of Hawaii County government. Therefore, a narrowly scoped
online survey of city/county essential services was conducted for discussion among the
Commissioners. Local government functions were summarized as:
Though cities differ in the division of responsibility, the typical arrangement is to have the
following departments handle the following roles:
1. Urban planning/zoning
2. Economic development/tourism
3. Public works
- construction and maintenance of all city-owned or operated assets,
including the water supply system, sewer, streets, storm water, snow removal, street
cleaning, street signs, vehicles, buildings, land, etc.
4. Parks and recreation - construction and maintenance of city parks, common areas,
parkways, publicly-owned land, operation of various recreation programs and facilities
5. Police
6. Fire
7. Emergency medical services
8. Emergency management
9. Accounting/finance - often tax collection, audits
10. Human resources - for city workers
11. General counsel/city attorney/risk management - legal matters such as writing municipal
bonds, ensuring city compliance with state and federal law, responding to citizen
lawsuits stemming from city actions or inactions.
12. Transportation (varies widely) - if the city has a municipal bus or light rail service, this
function may be its own department or it may be folded into the another of the above
departments.
13. Information technology - supports computer systems used by city employees; may be
also responsible for a city website, phones and other systems.
14. Housing department
15. Municipal court
Hawaii is the only U.S. state that has no incorporated municipalities. Instead it has four
counties plus the "consolidated city-County" of Honolulu. All communities are considered
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to be census-designated places, with the exact boundaries being decided upon by co-
operative agreement between the Governor's office and the U.S. Census Bureau.
Kalawao County is the second smallest County in the United States, and is often
considered part of Maui County.Wikipedia,Local government in the United States at
http://en.wikipedia.org/wiki/Local_government_in_the_United_States (June 1, 2011).
In other online sources, the consensus was that there are ten general service categories that
counties are responsible for providing which are listed below.
1. General Government
2. Public Safety
3. Public Works
4. Health
5. Education
6. Community Colleges
7. Libraries
8. Recreation and Parks
9. Land Planning and Development
10. Debt Service
It is evident that Hawaii County is dissimilar for several reasons. In Hawai‘i the areas of Health
and Education are largely overseen by the State. However, in the future, the County may want
to take a more active role in these areas.
For budgetary purposes, the County of Hawaii is organized as follows:
GENERAL GOVERNMENT
County Council
Executive
Auditing
Elections
Finance
Information Technology
Law
Planning & Zoning
Personnel Administration
Research & Investigation
Public Works
PUBLIC SAFETY
Police
Fire
Construction/Building Inspection
Animal Control
Civil Defense
Liquor Control
Flood Control
Traffic Services
Prosecuting Attorney
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HIGHWAYS
Roadway Maintenance
Public Transportation
SANITATION & WASTE REMOVAL
Environmental Management
Sewer & Sewage Disposal
Vehicle & Parts Disposal
Waste Disposal
HEALTH, WELFARE, & EDUCATION
County Physicians
Aging Services
Non-profit Grants
Housing
Cemeteries
Cooperative Education Program
CULTURE-RECREATION
Community Music
Organized Recreation
Park Development and Maintenance
DEBT SERVICE
PENSION PAYMENTS & RETIREMENT SYSTEM CONTRIBUTIONS
HEALTH FUND
MISCELLANEOUS
Worker’s Compensation
Unemployment Compensation
Contributions/Transfers to Other Funds
Other
One study published online identified the essential County services as: welfare, social and
economic development services.
The services most commonly provided by US County governments are: law enforcement, 911
service, and health clinic services. Two other prominent services are economic development
and land use planning. David Kraybill and Linda Lobao (August 5-8, 2001), The Emerging
Roles of County Governments in Rural America: Findings from a Recent National Survey,
http://ageconsearch.umn.edu/bitstream/20697/1/sp01kr01.pdf (June 15, 2011).
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In some US counties’ statements and studies it was stated that local governments need to
acknowledge a new paradigm to operate efficiently and responsibly, establish priorities, and that
core functions and priorities should be properly funded and well managed. Programs that are
ineffective or no longer necessary and could be eliminated should be phased out. The new
paradigm is for County governments to provide human services and various assistance
programs in a facilitative role, rather than developing programs to solve problems. The
evolution, it is said, is due to the devolution and economic changes of the times. Effectively
Managing County Government,
http://johncook4supervisor.com/_docs/Effective_Government.pdf (June 15, 2011).
The COGC considered the essential functions and the statements from various sources,
together with our objective points of view, to make recommendations for efficiency, improved
services, and to promote the economy of Hawai‘i County.
Part 2 – Specific Recommendations
A. County Wide Recommendations to Save Costs and Increase Revenues
1. Employee benefits and compensation
a. Compensation Package
1) Allow employees to work 10 hours/4 days per week. Potential savings would be
realized in lower utility costs, reduction in overtime costs for staff required to attend
evening public meetings, reduction in travel time/mileage, and increased employee
morale.
2) Institute a performance-based employee rewards program. Rewards might be a
bonus, time off, increase in compensation, etc.
3) Set the work week at 40-hours a week rather than eight hours a day, and allow an
employee to flex their work schedules during the 40-hour work week. This would
reduce overtime and allow employees who must travel some distance to their job
site to make more productive use of their work hours.
4) Link pay cuts to an economic index that would restore cuts as the economy
Improves.
5) Focus work-hour cuts or shift personnel in departments that have less demand
for their services in a slow economy to departments or tasks requiring additional
man hours.
6) Establish a ‘voluntary furlough’ program. Suggested format is:
a) Each department head decides which positions or whether any positions can
accommodate a personnel time reduction on a temporary basis only.
b) Any employee may apply.
c) Each eligible full-time employee may take off a maximum of one day per
week (two days per pay period) without pay.
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d) Eligible employees agree to a 90-day commitment to the voluntary furlough
program, which may be renewed by application at least 20 days prior to
expiration (for accounting management needs). Department heads or
supervisors may reduce the time off requested or may deny voluntary
furlough time, based on personnel needs.
7) Reduce the number of paid holidays for all County employees to be more in line
with current business practices.
8) Reduce monthly accrual of vacation or sick leave from 14 hours per month (4.5
weeks per year for each) to 10 hours per month (three weeks per year).
9) Consolidate vacation and sick time into personal time off. Potential impacts would
allow employees more flexibility to schedule personal time off, would reduce abuse
of sick time.
10) Establish an early retirement incentive plan.
b. Reimbursement for Expenses
1) Eliminate on-island meal reimbursements.
2) Replace fixed per diem amounts for meals and lodging with actual expenses,
capped at per diem amount.
c. Travel Policies
1) Limit attendance at off-island conferences and/or hold off-island conferences via
Skype or video conferencing. Hold department and division meetings via video
conferencing. Utilize multimedia communication in lieu of face-to-face meetings to
reduce on and off-island travel. (See also Executive Summary)
2) Restrict the use of county take home vehicles to those employees who are required
to respond to off-hour emergencies.
3) Implement a vehicle pool that would be accessible to all county departments to limit
vehicle purchases by individual departments while still providing vehicles to
employees who may need use of a vehicle. A vehicle pool would also centralize the
purchase and maintenance of vehicles.
d. Staff consolidations/eliminations and overtime reduction
1) Consolidate the enforcement responsibilities of the Planning Department, Building
Department, Real Property Tax Division, Department of Environmental
Management and the Department of Health (as contracted to the county) into an
enforcement division. This would help eliminate inspections from multiple
departments and help to administer enforcement of remedial actions and fines. (See
also Executive Summary)
2) Review and streamline the procedures for disciplining and terminating employees.
3) Cross train employees to perform multiple functions within a department.
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4) Pool clerical staff among departments when appropriate.
5) Recruit and use volunteers and volunteer groups at all levels of County operations.
6) Eliminate vacant funded positions.
7) Introduce a six month hiring freeze and review it every six months to see if it should
be continued.
8) Identify all jobs and tasks that are mandated by state and federal governments as
well as in the County Charter and consider eliminating positions that don’t fall within
those mandates.
9) Propose a resolution to the state allowing each county to negotiate collective
bargaining contracts on behalf of the county. This would allow the county to be
more responsive to the economic conditions and demographics of the areas served.
(See also Executive Summary)
10) Consolidate similar functions such as project managers, engineers, maintenance
personnel from various departments into a county-wide pool that all departments
can draw from.
11) Direct the Human Resources department to examine countywide overtime policies
to make sure they are fair, unambiguous and effective in reducing overtime. (see
also Human Resources)
12) Eliminate the Personnel Officer position in smaller departments and designate a
specialist in Human Resources to absorb these tasks (see also Human Resources)
e. Creation of Positions to Enhance Revenues
1) Create a position dedicated to focusing on health care and education industries.
2) Centralize grant writing efforts by creating a Grant Specialist position to work with all
departments in the county to improve the county’s ability to receive funds from
various sources. (See also Executive Summary)
2. Technology Adoption
a) Investigate having county employees videotape council and committee meetings
that would be available online through streaming or via ordering a DVD in lieu of the
current contracted videotaping services. This would require timely posting of
transcriptions online. This will increase availability to all county residents.
b) Develop and implement a county-wide technology management plan. (See also
Executive Summary)
c) Implement the use of Laserfiche for all departments when and where practical.
3. Contracting Process
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a) Require each department to facilitate long term planning and budgeting by having
an annual planning session to identify their needs for outside contracting services
over the next two to five years. This will allow each department to commence with
drafting bid documents and properly define their scope..
b) Review internal processes that are currently in use to reduce change orders,
renewals and processing in a timely manner. Utilize technology such as electronic
signatures in each department, electronic distribution, and online approvals to
increase efficiency. (See also Executive Summary)
Budget Review Process
4.
a) Develop three different budget scenarios for each department as part of the annual
budgeting process. One version would be based on the current budget allocation,
another version would reflect a five percent increase in funding, and the third would
be based on a 10% decrease from the current budget.
b) Review the county’s operating budget semi-annually or quarterly to make needed
adjustments.
5. Boards and Commissions
a) Request that all Boards and Commissions reduce the number of their meetings to
help save on personnel time and travel reimbursements.
6. Miscellaneous
a) Continue to update and enforce the county’s internet use policy for all employees.
b) Solicit employee suggestions and recommendations on a regular basis including
cost saving suggestions.
B. Department Specific Recommendations to Save Costs and Increase Revenues
1. County Clerk
a) Use a hiring agency to staff temporary election clerk positions
2. Environmental Management
a) Implement software solutions to coordinate collection of tipping fees at the scale
house and insure accounting systems are able to read the data. (See also
Executive Summary)
b) Regulate septic and grease haulers and increase the annual fee for registration
commensurate with fees of other counties in Hawai‘i. (See also Executive
Summary)
14
c) Increase the annual renewal fee for solid waste haulers and require all haulers to
be current on solid waste bills to reduce delinquencies. (See also Executive
Summary)
d) Separate positions for heavy equipment operators in the Solid Waste Division
who work only at landfills and don’t need a CDL license from those who drive off-
site and do need a CDL license.
e) Impose a fee to be included in each parcel’s tax bill to help fund recycling and
efficient management of e-waste disposal. (See also Real Property Tax) (See
also Executive Summary)
3. Finance
a) Establish a one-time auto salvage fee to be assessed when a vehicle is first
registered in the county. This fee will be in addition to the disposal fee already in
effect.
b) Establish a salvage fee for commercial buses that would offset the cost of
Including their disposal through the counties scrap metal recycling program.
4. Fire
a) Investigate the cost effectiveness of implementing a jet ski program with our
Ocean Safety Division.
5. Mayor’s Office
a) Use the Retired and Senior Volunteer Program (RSVP) as a template to expand
opportunities for volunteers to work within the county and in response to county
needs.
b) Direct all departments to utilize student interns.
6. Parks and Recreation
a) Streamline the re-contracting process for continuing, part-time temporary staff
including eliminating the yearly requirement for a physical exam.
7. Planning
a) Combine the Steering Committees and the Action Committees into one
Community Development Plan (CDP) Support Committee which will follow
through on CDP recommendations within the first two years after adoption
b) Allow standardized housing that meets the minimum health and safety
requirements and may include such things as minimum square footage,
composting toilets and water catchment. This will save on enforcement fees and
provide more affordable housing option for the public. (See also Public Works)
15
8. Police
a) Base the fuel reimbursement for all Police Department personnel on actual
mileage rather than a fixed amount that is not reflective of distances travelled.
b) Develop a notification system for police officers who have been subpoenaed for
court hearings to let them know if the hearing has been cancelled or postponed,
thus avoiding unnecessary travel and overtime pay.
c) Cut the monthly car allowance for police officers and replace it with a yearly
servicing and maintenance allowance.
9. Public Works
a) Allow standardized housing that meets the minimum health and safety
requirements and may include such things as minimum square footage,
composting toilets and water catchment. This will save on enforcement fees as
well as provide more affordable housing options for the public (See also
Planning)
10. Real Property
a) Review the process for qualifying agricultural property tax exemptions and
require financial documentation to verify and substantiate agricultural activity.
Fine and/or revoke exemptions for violators. (See also Executive Summary)
b) Eliminate the Homeowner’s Real Property Exemption for unpermitted dwellings.
(See also Executive Summary)
c) Review the property tax base for all categories and identify collections by district
and category.
d) Impose a fee to be included in each parcel’s tax bill to help fund recycling and
efficient management of e-waste disposal. (See also Environmental
Management and Executive Summary).
11. Human Resources
a) Eliminate the Personnel Officer position in smaller departments and designate a
specialist in Human Resources to absorb these tasks. (see also Staff
consolidations/eliminations and overtime reduction)
b) Reorganize the Human Resources Department to decrease staffing needs.
c) Direct the Human Resources department to examine countywide overtime
policies to make sure they are fair, unambiguous and effective in reducing
overtime. (see also Staff consolidations/eliminations and overtime reduction)
16
Part 3 – Conclusion
The essence of the work of this Cost of Government Commission has been to serve as a
conduit of public and private perspectives to study and investigate the organizations and
methods of operations of all departments, commissions, boards, offices and other
instrumentalities of all branches of the County government and determine what changes, if any,
may be desirable to accomplish the Hawaii County Charter policy. Mahalo to all the elected
officials, department heads, County employees, volunteer board members, public citizens, and
the County staff who collaborated with the COGC members to contribute to the mission.
Mayor Billy Kenoi spoke to the COGC on April 27, 2011 when he expressed the value of the
COGC’s representation as the public voice. Further he articulated, “when we talk about creating
st
a new economy, a 21 century knowledge based economy… you need three things… To create
a thriving, vibrant economy that allows our working families to raise healthy, safe children… You
need people, you need ideas, and you need capital.”
Councilman Pete Hoffman addressed the COGC on January 14, 2011 when he spoke
passionately about importance of the council and the administration working together – and he
asked to emphasize the attitude of cooperation between the two bodies. The attitude, he said,
that “we’ve always done it this way… and somewhere along the line we have to be smart
enough and courageous enough politically in order to say to ourselves that ain’t good enough…
and until the administration and the council (are) willing to work together as a team to address
this and to make the real tough decisions, then we don’t make the progress that we need to.”
By the responses from the County employees and volunteers, we have respectfully surmised
that they generally want to do effective and efficient work for the good of the community. The
recommendations that we have listed herein are intended to support their efforts.
The task of delivering essential local government services, especially during these rough
economic times, requires innovative reforms that focus on efficiency and innovation… and, yes,
cooperation in-government and between public and private groups. Bringing together our
people, resources, and ideas in a collaborative approach – with the aloha spirit – has been the
intention of the work of this COGC and the leadership of the Hawaii County government system.
We, the members of the 2010-2011 Cost of Government Commission, fully appreciate that there
are changes that not only should be made, but need to be made in order for the County to
provide the essential services in a cost effective manner that the County populace will require in
the years ahead. It is our hope that some of these changes will grow out of the
recommendations that we have put forth in the report.
Appendices
17
A. COGC Requests for Information
18
COST OF GOVERNMENT COMMISSION
c/o Office of the Corporation Counsel, 101 Aupuni Street,
Suite 325, Hilo, Hawai‘i 96720
SAMPLE OF LETTER TO COUNCIL MEMBERS
August 5, 2010
As you are aware, the Cost of Government Commission was recently reconvened and has
begun its work. The Commission is charged with studying the organization and methods of
operation of each County department in an effort to promote economy, efficiency and improved
service in the transaction of the public business in the legislative and executive branches of the
County.
As a starting point for discussion, the Commission asks that you provide, in no more than
two pages, responses to the following questions:
1. What do you consider the essential services, activities and functions of the
County? Please provide your response in priority order from the most
important to least important.
2. Do you have any suggestions on how to:
a) Limit expenditures to the lowest amount consistent with the efficient
performance of essential services, activities, and functions;
b) Eliminate duplication and overlapping of services, activities, and
functions;
c) Consolidate services, activities, and functions of a similar nature; and
d) Abolish services, activities, and functions not necessary to the efficient
conduct of government.
Because we have only eleven (11) months to fulfill our Charter mandate, we would
September 5, 2010.
greatly appreciate a response no later than Please send your response to the
Cost of Government Commission c/o Office of the Corporation Counsel, 101 Aupuni Street,
Suite 325, Hilo, Hawai‘i 96720. You may also fax your response to 961-8622 or email your
response to the Cost of Government Commission’s secretary, Sandy, at sarriola@co.hawaii.hi.us.
We look forward to hearing from you. Thank you in advance for your cooperation.
Very truly yours,
Gloria Wong
Vice-Chair
GW/KAG:emc
Hawai`i County is an Equal Opportunity Employer and Provider
COST OF GOVERNMENT COMMISSION
c/o Office of the Corporation Counsel, 101 Aupuni Street,
Suite 325, Hilo, Hawai‘i 96720
SAMPLE OF LETTER TO BOARDS & COMMISSIONS
August 5, 2010
As you are aware, the Cost of Government Commission was recently reconvened and has
begun its work. The Commission is charged with studying the organization and methods of
operation of each County department in an effort to promote economy, efficiency and improved
service in the transaction of the public business in the legislative and executive branches of the
County.
As a starting point for discussion, the Commission asks that you provide, in no more than
two pages, responses to the following questions:
1. Please list the primary functions and services your commission provides.
In your response, please prioritize the functions and services.
2. Please provide us with at least three (3) opportunities your commission
sees that services, activities or functions can be consolidated within the
County.
3. Please identify ways to enhance revenue and revenue collections within
the County.
4. Can you suggest any technology that might streamline the County’s
operations? If you’ve investigated this technology, please provide the
implementation costs and potential savings to the County.
5. Please provide three (3) operational measures that you would like to
implement to make the County more efficient.
Because we have only eleven (11) months to fulfill our Charter mandate, we would
October 1, 2010.
greatly appreciate a response no later than Please send your response to the
Cost of Government Commission c/o Office of the Corporation Counsel, 101 Aupuni Street,
Suite 325, Hilo, Hawai‘i 96720. You may also fax your response to 961-8622 or email your
response to the Cost of Government Commission’s secretary, Sandy, at sarriola@co.hawaii.hi.us.
Should you have any questions, please contact Katherine A. Garson, Assistant
Corporation Counsel, at 961-8251.
Hawai`i County is an Equal Opportunity Employer and Provider
Judith Bell, Chair
Committee on Aging
August 5, 2010
Page 2 of 2
We look forward to hearing from you. Thank you in advance for your cooperation.
Very truly yours,
Gloria Wong
Vice-Chair
GW/KAG:emc
COST OF GOVERNMENT COMMISSION
c/o Office of the Corporation Counsel, 101 Aupuni Street,
Suite 325, Hilo, Hawai‘i 96720
SAMPLE OF LETTER TO DEPARTMENT HEADS
August 5, 2010
As you are aware, the Cost of Government Commission was recently reconvened and has
begun its work. The Commission is charged with studying the organization and methods of
operation of each County department in an effort to promote economy, efficiency and improved
service in the transaction of the public business in the legislative and executive branches of the
County.
As a starting point for discussion, the Commission asks that you provide, in no more than
two pages, responses to the following questions:
1. Please list the primary functions and services your department provides.
In your response, please prioritize the functions and services.
2. Please provide us with at least three (3) opportunities you see that
services, activities or functions can be consolidated within your
department or in tandem with other departments (within the next fiscal
year).
3. Please identify ways to enhance revenue and revenue collections in your
department, if applicable.
4. Can you suggest any technology that might streamline your department’s
operations? If you’ve investigated this technology, please provide the
implementation costs and potential savings to your department.
5. Please provide three (3) operational measures that you would like to
implement to make your operations more efficient.
Because we have only eleven (11) months to fulfill our Charter mandate, we would
September 1, 2010.
greatly appreciate a response no later than Please send your response to the
Cost of Government Commission c/o Office of the Corporation Counsel, 101 Aupuni Street,
Suite 325, Hilo, Hawai‘i 96720. You may also fax your response to 961-8622 or email your
response to the Cost of Government Commission’s secretary, Sandy, at sarriola@co.hawaii.hi.us.
Should you have any questions, please contact Katherine A. Garson, Assistant
Corporation Counsel, at 961-8251.
Hawai`i County is an Equal Opportunity Employer and Provider
Burt Tsuchiya, Director
Data Systems Department
August 5, 2010
Page 2 of 2
We look forward to hearing from you. Thank you in advance for your cooperation.
Very truly yours,
Gloria Wong
Vice-Chair
GW/KAG:emc
COST OF GOVERNMENT COMMISSION
c/o Office of the Corporation Counsel, 101 Aupuni Street,
Suite 325, Hilo, Hawai‘i 96720
SAMPLE OF LETTER TO EMPLOYEES
NOTICE TO ALL EMPLOYEES
August 5, 2010
As required by law, the Cost of Government Commission was recently reconvened and
has begun its work. The Commission is comprised of volunteers from your community and is
charged with studying the organization and methods of operation of each County department in
an effort to promote economy, efficiency and improved service in the transaction of the public
business in the legislative and executive branches of the County.
As a starting point for discussion, the Commission asks for your input on the following
questions:
1.Do you have any ideas on how the County can save money while not
compromising essential services?
2.Do you have any ideas on how the County government can function more
efficiently?
Because we have only eleven (11) months to fulfill our Charter mandate, please provide
September 13, 2010.
your input no later than
YOUR RESPONSE TO THE ABOVE QUESTIONS MAY BE MADE
ANONYMOUSLY.
Please send your response to the Cost of Government Commission c/o Office of the
Corporation Counsel, 101 Aupuni Street, Suite 325, Hilo, Hawai‘i 96720. You may also fax your
response to 961-8622 or email your response to the Cost of Government Commission’s secretary,
Sandy, at sarriola@co.hawaii.hi.us.
We look forward to hearing from you. Thank you in advance for your cooperation.
Very truly yours,
Gloria Wong
Vice-Chair
GW/KAG:emc
Hawai`i County is an Equal Opportunity Provider and Employer