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HomeMy WebLinkAbout2015-01-16 Cost of Government Commission Minutes COST OF GOVERNMENT COMMISSION c/o Office of the Corporation Counsel, 101 Aupuni Street, Suite 325, Hilo, Hawai‘i 96720 12 MINUTES – UNAPPROVED January 16, 2015 – 9:00 a.m. Office of the Corporation Counsel Conference Room 101 Aupuni Street, Suite 325 Hilo, Hawai‘i 96720 Commission Members present: Susan Maddox, Chair Ashley Kierkiewicz, Vice Chair Douglas Espejo Delan Perry Glen Matsuda Also present: Katherine A. Garson, Deputy Corporation Counsel Jennifer M. Kualii, Secretary Shanell Sarsuelo (assisting/observing) Ms. Maddox reconvened the meeting at 9:03 a.m. 8. FINALIZATION OF REPORT Ms. Maddox stated the Commission will start at the beginning of the report and go through it page by page to ensure everything that needs to be submitted is in order. It was noted the Title page includes the names of all the Commissioners. Ms. Garson noted the appendices formatting were modified from the original draft. Ms. Maddox noted the Introduction is an overview and the recognitions were moved into the Executive Summary. Ms. Kierkiewicz asked if the heading for People should be changed to public outreach or general public. Ms. Maddox thinks general public seems more appropriate; the heading would then read as Staff and General Public. 1 Minutes in italics are verbatim 2 These Minutes are unapproved as no further meetings of this Commission are scheduled. Hawai‘i County is an Equal Opportunity Provider and Employer Ms. Maddox stated the main sections of the report include the Introduction, Executive Summary, Overarching Themes, Specific Department Recommendations, a Conclusion and numerous appendices. The first Appendix will be reference to Mr. Lau’s letter; Appendix B will be letters the Commission sent to Department Heads and Employees; Appendix C will be letters sent to Boards and Commissions and Appendix D will be responses from Departments and Boards and Commissions. Ms. Garson stated employee or anonymous responses were not included. Ms. Kierkiewicz stated those responses were all very positive. Discussion held and Introduction amended to read as follows: INTRODUCTION The 2014-15 Cost of Government Commission (“Commission”), consisted of seven (7) Commissioners, who were confirmed by the Hawai‘i County Council in mid-February 2014, and met for the first time February 20, 2014. Of the nine (9) County Council Districts, District 4 and District 6 were not represented. A total of 15 meetings were held over the course of its 11-month term. The Commission received copies of the previous three (3) Cost of Government Commission reports, the County of Hawai‘i (“County”) budget, the County annual report and numerous other documents to assist in understanding the scope of its work. In a communication dated April 7, 2014, Managing Director, Wally Lau provided a comprehensive update on the status of the implementation of the recommendations by the 2010-2011 Cost of Government Commission. This communication (Comm. No. 2014-077) is included as Appendix A of this report. The Commission considered Mr. Lau’s report to be a steering document, serving as a basis for the Commission’s recommendations. Using the previous reports as a foundation, the Commission identified a number of overarching themes that impact all County departments: 1) vehicle use, 2) overtime, 3) technology, 4) energy, 5) finance, 6) people (staff and general public) and 7) land resources. Commissioners agreed to incorporate these themes into interviews with department and division heads. Letters (see Appendices B and C) were sent to all departments and boards/commissions, summarizing recommendations from the 2010-11 report and requesting an update on the status of implementation. The letters also asked for input on ways to limit expenditures, eliminate duplication, consolidate functions and/or streamline procedures in, and among, departments. A letter soliciting input from all County employees was included in payroll envelopes. In addition, Commissioners also conducted research to gather additional information to better inform themselves and colleagues. The Commission created teams of two (2) Commissioners and divided the list of departments and boards/commissions based on individual Commissioner’s 2 interest. Each team contacted its assigned departments and boards/commissions and arranged for personal interviews, which were conducted between April and December 2014. Following interviews, Commissioners shared their findings at a Commission meeting and answered questions from their colleagues. Where appropriate, Commissioners contacted department heads for further information or clarification. In some instances, department heads attended a Commission meeting to share their input in person and to respond to Commissioners’ questions. Commissioners added potential recommendations to agendas, and discussions at the meetings provided an opportunity to review and refine recommendations included in this final report. Discussion held and Executive Summary amended to read as follows: EXECUTIVE SUMMARY The work of the Cost of Government Commission was engaging and awakening on many levels. The breadth and scope of each department’s responsibility is almost hard to fathom. Each department head, deputy department head, division head and commission representative was positive, very helpful and provided a wide range of information. Over the course of 11 months, Commissioners took an in-depth look at County government; and in the process, gained a tremendous amount of knowledge on how the County operates, constraining factors and what areas are State-dictated or subject to Union negotiation. During this same time period, the Island of Hawai‘i experienced a flurry of activity including close and contentious political races; the most active hurricane season in 22 years, where Tropical Storm Iselle caused tremendous damage; repeal and eventual overturn of Bill 113 which bans, with some exceptions, cultivation of GMO crops; and the June 27 lava outbreak in Puna, which is ongoing and a source of uncertainty and anxiety for area residents and businesses. Even with all of these challenges, at 2014 year’s end, the Fitch rating system rated County AA- with the comment, “The county demonstrated its ability to maintain a sound financial position through the economic downturn. Management actions included spending cuts, revenues increased in fiscal 2014 after several years of budget contractions.” (West Hawaii Today, 1/14/15). County officials have shown great leadership and continue to work collaboratively with a wide range of community partners for the benefit of island residents. In addition, Commission members found high levels of value in most departments. Employees are very dedicated and perform at a high level for the benefit of the County and its people. We appreciate and acknowledge the letters from County employees who shared a number of positive recommendations with the Commission. 3 Discussion held regarding Overarching Themes & Recommendations. Ms. Garson asked if Mr. Mitchell’s comment regarding the Finance Department should be included in this section. Ms. Maddox thought it was in the specific department section rather than in the Overarching Themes. Ms. Kierkiewicz noted not all departments had a lead in sentence and wanted it all to be consistent. Ms. Maddox suggested a comment at the beginning of the Overarching Themes section about all departments having gone through furloughs and staff cuts within the last four (4) years. Ms. Kierkiewicz asked if Mr. Mitchell’s comment on Finance should be moved to the Introduction. Ms. Maddox thinks it should be more as a lead in to the Overarching Themes. She would like to commend all County department heads because they all worked on their own budgets. Discussion held and Technology Recommendation amended to read as follows: Modify overly burdensome policies related to forms within County departments to reduce the amount of paper being utilized and increase the flow of communication. Discussion held and Technology Recommendation amended to read as follows: Automate internal forms. For example, implement an e-time sheet system that allows the timesheet to pass electronically from employee through management to other departments; this could save hours of labor involved in current manual system. Discussion held and Technology Recommendation amended to read as follows: Expand use of electronic signatures Countywide as a secure and valid means of authorization to save money in paper, copying, handling and maintaining paper documentation when it is unnecessary. Discussion held and Technology Recommendation amended to read as follows: Continue efforts to consolidate duplicative IT systems among/between departments to improve IT support and service, increase efficiency of information sharing and reduce costs. Centralize support and decision making for IT related to the overall network backbone, e-mail, internet access, anti-virus support, software updates and licensing. Discussion held and People Recommendation amended to read as follows: Accept credit cards Countywide to complete transactions currently requiring “in person” cash or check payments, such as for licenses, taxes and renewals. Ms. Kierkiewicz stated for the lead in paragraph under People, the Commission’s intention was to identify general areas and suggested amended language. Discussion held and Overarching Theme for People amended to read as follows: 4 PEOPLE (STAFF AND GENERAL PUBLIC) The Commission’s intention was to identify general areas where County procedures could be modified to be more user friendly for both employees and the general public. Discussion held and People Recommendation amended to read as follows: Continue to expand and expedite use of web-based services and commerce, allowing the public to conduct business via the internet to increase convenience, reduce lines and improve interactions with the public. Ms. Maddox noted this recommendation is under People as opposed to Technology because it was with the underlying fact that people would benefit from this. Ms. Kierkiewicz stated if everything is done online, the County is not necessarily improving any interactions with the public. Ms. Maddox thinks it would improve employee moral. Ms. Garson thinks interactions with the public can also be web-based. Discussion held and People Recommendation amended to read as follows: Explore ways to streamline and expedite the process for position revisions and department reorganizations. Some department heads indicated they had invested more than two years in reorganizing department functions and positions, leading to inefficiency and inability to implement program improvement goals. Ms. Maddox asked if there were any additional comments for the Office of Aging. There were no additional comments. Ms. Maddox asked for any comments on Civil Defense. Ms. Kierkiewicz stated Civil Defense has been working particularly hard with the lava flow. Ms. Maddox said Civil Defense is a significant department within the County and noted their involvement with the tropical storms and lava flow took precedence over the Commission’s work. Discussion held and language for Civil Defense amended to read as follows: CIVIL DEFENSE The Commission would like to specifically acknowledge the Hawai‘i County Civil Defense and County employees. During the past seven months, the level of communication and rapid response to the lava flow and tropical storms has been, and continue to be, extraordinary. Ms. Maddox asked for any comments under Environmental Management. Ms. Maddox expressed her concern that not all department heads were asked to do a presentation for the Commission. Ms. Kierkiewicz said Don Jacobs was acknowledged. Ms. Garson said Will Rolston, Deanna Sako and Warren Lee were also acknowledged. Ms. Maddox stated they were specifically asked to come and share with 5 the Commission. Ms. Kierkiewicz thinks to be consistent everyone that came would have to be identified. Mr. Matsuda thinks it should be included. Discussion held and language for Environmental Management, Finance and Energy to include presentations made are amended to read as follows: ENVIRONMENTAL MANAGEMENT The Commission appreciated Department Director BJ Leithead Todd, Deputy Director John Medeiros and Division Head Dora Beck attending a Commission meeting to share information and answer questions about all the department’s areas of responsibility. FINANCE The County’s detailed budget preparation process required multiple revisions with direction from the Mayor, prior to final submission to the County Council. All department heads interviewed demonstrated detailed knowledge of their department operating budget and have internal controls in place to remain within approved budgets. The Finance Department brings us great value and the residents of the County should be please by their professionalism and quality of work. The Commission appreciated Deputy Finance Director, Deanna Sako’s attendance at a Commission meeting to share information and answer questions about all the department’s areas of responsibility. ENERGY The price of electricity in Hawai‘i is the highest in the nation at more than 40 cents per kWh. County government is the largest consumer of electricity in the County and also uses significant amounts of fossil fuels to power County vehicles. Efforts to increase energy efficiency and leverage local resources such as sun and wind are being undertaken to drive down energy costs. The Commission appreciated Energy Coordinator, William Rolston, attending a Commission meeting to share information and answer questions about the energy projects on the island. Ms. Maddox asked for any comments on the recommendations for Environmental Management. Ms. Kierkiewicz asked who head of Solid Waste was. Ms. Garson replied Greg Goodale; he was not at the presentation, Deputy Director John Medeiros came in his place. Ms. Maddox asked if this is to cover the cost of sewer connection inspections. Ms. Garson replied it would not necessarily be tied to the exact cost because she believes sewer connection and inspections are done by employees. Mr. Espejo asked if the recommendation can include reference to collecting outstanding debts. Ms. Kierkiewicz replied no, not at this point. Ms. Garson stated it would be referenced in the Conclusion. Discussion held and Environmental Management Recommendation amended to read as follows: 6 Explore the possibility of implementing fees to cover sewer connection inspections, building permit reviews and administrative (annual) cost of septage hauler discharge permits. Ms. Kierkiewicz is in agreement with the remaining recommendations for Environmental Management. All agreed as written. Discussion held and Finance Recommendations amended to read as follows: Explore use of debit and credit cards at the Department of Motor Vehicles. Continue to update policies and procedures to expand and accelerate use of technology related to processes for online contracts and forms. Ms. Maddox asked for any comments on the recommendation for Fire Department. Discussion held and Fire Recommendation to read as follows: Implement jet ski program within the Ocean Safety Division of the Hawai‘i County Fire Department. Ms. Kierkiewicz asked if employee personnel records include timesheets. Ms. Maddox replied no. Mr. Matsuda asked if payroll records are done electronically. Ms. Maddox replied payroll records are done on Excel spreadsheets, Access data bases and the personal coordinated system. Discussion held and Human Resources Recommendation amended to read as follows: Allocate funds from the general operating budget to purchase personnel enterprise software to accurately and efficiently manage County employee personnel records, actions, time sheet submissions and payroll processing. Meeting recessed at 10:30 a.m. and reconvened at 10:37 a.m. Ms. Maddox clarified recommendations for Legislative Auditor and Mass Transit was agreed upon. All Commissioners agreed. Discussion held and Mayor/Managing Director Recommendations amended to read as follows: Continue to improve County communication with public through continued enhancements to County website, use of social media and presentations at periodic community meetings scheduled around the island. Regularly update the County’s website to provide easy-to-find links to the professional audits, reviews and plans that guide County decision making. 7 Examples include the federally mandated 20-year transportation plans and the International Association of Assessing Officers Technical Assistance Report Evaluating Property Tax Policies and Administrative Practices in Hawai‘i County (March 5, 2012). Discussion held and Parks & Recreation Recommendations amended to read as follows: Millions of dollars are at stake as the County has invested in family friendly parks and recreation centers, yet fire ants and spiders pose a very significant danger to these facilities. Create and fund three (3) permanent positions dedicated to protecting our County parks, beaches and recreational facilities from fire ants and spiders. Explore combining the East and West Hawai‘i County Bands. Discussion held and Planning Recommendation amended to read as follows: Expand list of designers, lumber yards and contractors approved for the package homes “pre-approval” program. Discussion held and Public Works Recommendation amended to read as follows: The Commission appreciated the attendance of Director Warren Lee and Deputy Director Brandon Gonzalez at a Commission meeting to share information and answer questions about all the department’s areas of responsibility. Urge County Council to increase the current County fuel tax of 8.8 cents/gallon to a level commensurate with other counties, for the purpose of increasing funding available to repave roads in a timely manner. Ms. Maddox stated the Conclusion goes back to general statements. She suggested including a universal statement about the amount of information the Commissioners learned about how the County operates or the efficiency with which it operates and that the scope of responsibility and short timeline presented significant challenges. Mr. Espejo suggested including suggestions for the next Commission and strongly urges that each Council district is represented. Ms. Kierkiewicz suggested including how much time was spent learning about County government and the research and meetings done outside of regular Commission meetings. She also noted these recommendations really get to the heart of what this Commission was charged to do and that was to find ways to make government more efficient. Mr. Matsuda asked if the Council Members have a responsibility to help find Commissioners in their district. Ms. Garson replied they are asked to. Ms. Garson also suggested including to have at least one (1) previous Cost of Government Commission member. Ms. Maddox asked if the County Charter specifies the quorum. Ms. Garson replied it specifies the number of people. Ms. Maddox clarified that quorum is based on nine (9) members whether nine (9) are impaneled or not. 8 Ms. Maddox appreciated the Sunshine Law training Ms. Garson gave at the start of the Commission meetings; she realized the importance of agendizing items to be discussed. Mr. Espejo found it more convenient having department heads attend Commission meetings. Ms. Maddox stated it wouldn’t be possible to have all 41 department heads attends their meetings but possibly invite the more critical departments. She noted the Commission found that personal appearance by department heads seemed to be effective. Discussion held and Conclusion amended to read as follows: CONCLUSIONS As previous Commissions have noted, the Commission’s scope of responsibility and short timeline presented significant challenges. The Commissioners spent a considerable amount of time outside of meetings learning how County government functions, researching related topics and meeting with department heads. The Commissioners hope their recommendations are given serious consideration. Commissioners believe the following suggestions will benefit future Cost of Government Commissions: (1) have all districts represented; (2) fully explain to potential commissioners the time commitment involved; (3) consider having at least one(1) previous Cost of Government member serve on a subsequent commission; (4) emphasize the Sunshine Law requirements related to agendizing topics to be discussed; and (5) encourage department heads to attend commission meetings. The Commissioners would like thank all department heads and employees, especially the Office of Corporation Counsel, for their support of the Commission’s work. Motion and Vote: Ms. Kierkiewicz moved to approve the report subject to final review for format by the Chair. The motion was seconded by Mr. Matsuda and all Commissioners present voted aye. 9. CHAIR’S STATEMENT Ms. Maddox: I would like to thank you all for your willingness to serve, whether you knew what you were getting into or not, and for supporting me as the Chair. I really appreciate that and I do especially appreciate Shanell and Jen because I know how much time and energy it takes to transcribe minutes for these kinds of meetings and to do it in the timely fashion that you did; and all of the agendas and the paper and things that you provided for us they were extremely helpful, thank you very much. And to Kathy for your patience and persistence and gentle coaching me through the process, too. I have learned a great deal and I will be a much stronger advocate of County government than I have been in the past; and I thank you all. And I will open the floor to any other comments Commissioners would like to make and then we will entertain one last motion. 9 Mr. Matsuda: For me, just thank you for being there when I could not be there, all of you, I appreciate it and I’m glad and appreciate the fact that everybody came together at the very end and we all got it done. 10. ADJOURNMENT Motion and Vote: Mr. Espejo moved to adjourn the meeting. The motion was seconded by Mr. Perry and all Commissioners present voted aye. Meeting adjourned at 11:10 a.m. Respectfully submitted: Jennifer M. Kualii Jennifer M. Kualii, Secretary 10